> ## Content Index > Fetch the complete content index at: https://www.fintechobserver.com/llms.txt > Use this file to discover other available public pages before exploring further. # Lifenet: Fiscal 2023 Presentation Highlights - URL: https://www.fintechobserver.com/lifenet-fiscal-2023-presentation-highlights/ - Published: 2024-05-20T06:32:28.000Z - Updated: 2024-05-20T06:32:28.000Z - Description: Fiscal 2023 Key Highlights - Author: Norbert Gehrke - Tags: #Migrated-1734246964256, #Import 2024-12-15 07:16 #### **Fiscal 2023 Key Highlights** Lifenet Insurance Company delivered a strong financial performance in fiscal 2023, marked by significant growth in key indicators: - **Annualized premium of policies-in-force:** Increased by 20% year-on-year (YoY) to ¥28,750mn, driven by the addition of Group Credit Life Insurance (GCL). - **Insurance service results:** Rose by 24% YoY to ¥8,222mn. - **European Embedded Value (EEV):** Experienced a substantial 117.9% YoY increase to ¥146,991mn. **Notable Achievements:** - **Implementation of new initiatives for sustainable growth:** Lifenet introduced GCL, a group credit life insurance product, and forged an alliance with the SMBC Group. - **Launch of Dementia Insurance:** Lifenet co-developed a dementia insurance product with Eisai in April 2024, addressing the growing concerns around dementia in Japan. - **Awarded #1 Direct Life Insurer for 4th Consecutive Year:** Lifenet received top ranking in J.D. Power’s Japan Life Insurance Contract Customer Satisfaction Study for Direct Segment. #### **New Management Policy and Mid-term Plan** Lifenet outlined a new management policy and a mid-term business plan (FY2024–2028) focused on achieving sustainable growth and enhancing shareholder value. **Mission:** Help customers embrace life more fully by offering comprehensible, cost-competitive, and convenient products and services. **Vision:** Be the leading online life insurer creating the future of life insurance. **Values:** Lifenet’s values are based on its “LIFENET Manifesto,” emphasizing: - Manifesto driven - Ownership - Teamwork - Growth mindset - Be ambitious **Mid-term Plan (FY2024–2028):** **Priority Areas:** Embedded (enhancing existing product offerings), Tech & Services (leveraging technology for improved customer experience), Rebranding (refreshing brand image). **Financial Targets:** - Achieve Comprehensive Equity (CE) of ¥200–240bn by FY2028. - Aim for a stock price of ¥3,000+. - Achieve an annual growth rate of CE per share of approximately 10%. **Non-Financial Targets (Human Capital):** - Promote organizational transition to focus on priority areas. - Create a virtuous cycle of employee growth and business growth. - Maintain and strengthen an organizational culture based on the LIFENET Manifesto. - Achieve continuous improvement in overall engagement score. - Increase the ratio of decision-makers to 30% women and 15% under 30s. #### **Future Initiatives to Improve Market Evaluation** Lifenet recognizes the need to improve market evaluation despite its strong corporate value growth. The company intends to take the following initiatives: - **Adopt Comprehensive Equity (CE) as the new management indicator:** CE will replace EEV, aligning Lifenet with global peers using IFRS17. - **Commit to targets and time frames:** This will ensure alignment between shareholders and investors. - **Transit to the TSE Prime Market:** Aiming for a listing around 2025 to expand the investor base and improve market liquidity. - **Strengthen governance systems:** This includes a shift to a Board of Directors with a majority of Independent Outside Directors, enhancing the separation of supervisory and executive functions. #### **Business Environment and Priority Areas** Lifenet’s business environment is characterized by positive trends: - **Growth of online financial services:** Accelerated by COVID-19. - **Increasing online insurance players:** This fosters competition and innovation. - **Younger generation’s embrace of technology:** This creates opportunities for online insurance adoption. - **Expansion of the online life insurance market:** Driven by the digitalization of the financial ecosystem. Lifenet has identified three priority areas for further growth: - **Tech & Services:** Focusing on qualitative changes in the internet direct business. - **Embedded:** Enhancing existing products and embedding them into partner ecosystems. - **Rebranding:** Refreshing Lifenet’s brand image to appeal to younger generations. #### **Growth Strategies:** **Individual Life Insurance:** - Direct business: Focus on marketing to younger generations through rebranding, nurture marketing, and product & service enhancements. - Partner business: Deepening ties with existing partners and developing alliances with companies with broad customer bases. **Group Credit Life Insurance (GCL):** - Deepening alliances with existing partners, such as au Jibun Bank. - Expanding partnerships with new banks by capitalizing on the shift to digitalization in the mortgage loan business. #### **Human Resources Strategy:** **Diversity & Growth Opportunities:** - Emphasizing cross-organizational systems, development through challenges, and strengthening the culture based on the LIFENET Manifesto. #### **Key Financial Metrics Analysis:** - **Insurance Service Results:** Increased significantly due to growth in the individual life business, despite higher-than-expected GCL payments. - **EEV:** Increased due to the growth of the value of new business (VoNB), including GCL, improvement in operating expense ratio, revision of mortality assumptions, and capital raising. - **Comprehensive Equity (CE):** Introduced as a new management indicator, reflecting the company’s value more comprehensively than EEV. - **Solvency Margin Ratio:** Demonstrates a strong financial position, exceeding the statutory requirement. #### **Conclusion** Lifenet Insurance Company is well-positioned for continued growth and success, driven by its commitment to innovation, customer focus, and a strong financial foundation. The company’s strategic initiatives, including the implementation of a new management policy and mid-term business plan, are designed to achieve sustainable growth, enhance shareholder value, and create a positive impact on society. By focusing on strategic priorities, embracing technological advancements, and fostering a culture of growth and innovation, Lifenet is confident in its ability to continue to deliver value to its customers and stakeholders. --- Please follow us to read more about Finance & FinTech in Japan, like hundreds of readers do every day. We invite you to also register for our short weekly digest, the “Japan FinTech Observer”, on [Medium](https://medium.com/tokyo-fintech/newsletters/japan-fintech-observer?ref=fintechobserver.com) or on [LinkedIn](https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7048203270833524736&ref=fintechobserver.com). 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