First Read: Japan Life Insurance "Life insurance sector: Q4 results flas..."

Research evidence excerpt

First Read: Japan Life Insurance "Life insurance sector: Q4 results flas..."

Global Research

15 May 2026ab

First Read

EquitiesJapan Life Insurance

Life insurance sector: Q4 results flash: Growth Japan

driven by overseas business, not domestic Insurance, Life

Koichi Niwa

Analyst

koichi.niwa@ubs.com

Q：What is the overall assessment of results? +81-3-5208 6245

Our overall impression of the two life insurance groups that announced results today is Makoto Ishii

that earnings are broadly in line with expectations. Management clearly shifted towards Associate Analyst

dividend-focused shareholder return policies. This means the market is likely to now makoto.ishii@ubs.com

focus more on whether companies can expand their potential to increase dividends. In +81-3-5208 3097

this context, FY3/27 guidance seems to be somewhat lacking in conviction. This is

because profits in domestic life insurance operations remain at a high level but are

limited in growth, while overseas operations are driving overall earnings expansion.

However, while rising yen interest rates should widen positive spreads, meaningful

expansion in domestic profits is likely to require time because there is a lag before this

fully materialises as profit growth. In other words, investors do not need to be overly

concerned about the currently slow pace of earnings growth. We expect profits in

domestic life insurance to improve steadily over time, and we view the recent results as

reassuring from a longer-term perspective.

Q：How were T&D Holdings’ (8795) results?

Slightly negative: Results put spotlight on insufficient shareholder returns (Earnings

Materials).

What were the most noteworthy aspects of the results? FY3/27 guidance assumes

stagnant growth in the value of new contracts and a narrower positive spread.