The Japan Insurance Read Across

Research evidence excerpt

The Japan Insurance Read Across

as most things do in Japan, it will

take time. A look across the foreign and domestic players shows the beginning of a gradual shift

out of FX retirement products and into JPY-based products for the last year or so.

We think the fairly slow pace of product approvals, some regulatory issues with bancassurance

sales (seconding life employees are being removed from the banks in some instances, which

slows sales), and the mix shift away from FX towards yen, has resulted in limited total growth for

the time being. We suspect that pace should improve if the high interest rate levels remain in

place for several more years.

Key Disclosure and Notes

Dai-ichi

Dai-Ichi Life has seen increased JPY product sales and T&D haven’t yet seen a spike in JPY

Retirement Sales. Dai-ichi Life adjusted profit of $3.4bn, 10% above its original forecast. ROE of

12.7%. Next year forecast up around 1%. Upside to profits came from the domestic life business

from higher investment income while international Protective Life earnings were in line. Asset

management came in above forecasts also.

Domestic New Business up 18% for FYE March 2026.

Increased sales of yen products at DFL.

ESR stable at 220%. The positive impact of stronger equity markets offset the elevation of risk

charges from higher interest rates and mass lapses. Actual lapse rates have only risen modestly

and remained at a low level.

Nippon Life

Corporate operating profit was around $8bn for FY ending March 2026 – up 29% yr/yr driven by

Nippon Life domestic and international from Resolution Life acquisition and CRBG equity method

accounting

Annualized premiums for individual insurance and annuities are about $31bn for FYE March

2026 and new sales were around $4bn.