T&D : 1Q 2022 T&D Insurance Group’s Financial Results

Date:








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[Reference]

T&D Insurance Group’s Financial Results for the Three Months Ended June 30,

2022

Summary of Financial Results

P. 2

Overview of T&D Insurance Group’s Financial

P. 4

Results

Domestic Life Insurance Business

P. 7

Diversification of Business Portfolio

P. 13

Earnings Forecasts and Shareholder Returns

P. 15

[Reference] Insurance claims for COVID-19

P. 16

Households

SMEs

Independent

insurance agent

and other group companies

T&D Holdings of the T&D Insurance Group has three core life insurance companies; Taiyo Life, Daido Life, T&D Financial Life, moreover, T&D United Capital (closed book business) which is responsible for diversification of business portfolio, T&D Asset Management (asset management business), Pet & Family Insurance (non-life insurance business), and other Group companies.

1

Summary of Financial Results

  • 1. Overview of Consolidated Financial Results*1

(Billions of yen)

1Q2021

1Q2022

Change

Ordinary revenues

570.0

752.3

+32.0%

Group adjusted profit*2

24.1

38.6

+60.2%

Profit attributable to owners

(31.8)

(59.2)

-%

of parent (net loss)

Note: .”Change” is presented in comparison with the same period of the previous fiscal year.

  • 2. Domestic Life Insurance Business (Sum of three Companies)

(Billions of yen)

1Q2021

1Q2022

Change

Annualized premiums of

30.8

36.8

+19.5%

new policies

2022/03

2022/06

Change

Annualized premiums of

1,543.1

1,544.9

+0.1%

policies in force

1Q2021

1Q2022

Change

Income from insurance

463.0

535.5

+15.6%

premiums and others

1Q2021

1Q2022

Change

Core profit*3

37.5

41.8

+11.5%

1Q2021

1Q2022

Change

Adjusted profit*2

22.0

28.0

+27.2%

1Q2021

1Q2022

Change

Value of new business*4

39.4

46.3

+6.8

Note: .”Change” is presented in comparison with the same period of the previous fiscal year.

  • Ordinary revenues increased year on year due to favorable results of domestic life insurance businesses.
  • Group adjusted profit, Group’s key management indicators, exceeded previous fiscal year levels due to favorable results of domestic life insurance businesses and a foreign reinsurance affiliated company
    (“Fortitude”).
  • Profit attributable to owners of parent decreased year-on-year mainly due to temporary valuation losses related to Fortitude on accounting resulting from an increase in U.S. interest rate .
  • Sales results was strong due to favorable sales of mainstay products and the establishment of sales activities that integrated face-to-face and non-face to face sales activities. Annualized premium of new policies and income from insurance premiums and others both increased from the same period last year.
  • Core profit increased from the same period of the previous year, mainly due to an increase in interest, dividends, and other income.
  • Value of new business increased year on year.

*1 Figures for the three months ended June 30, 2021 are after retrospective accounting treatments in connection with the group restructuring in Fortitude announced on October 1, 2021.

*2 Adjusted profit is one of the indicators to measure the actual business conditions. This is calculated by reflecting the adjustment of temporary valuation gains or losses resulting from market fluctuations on accounting etc. to net income.

*3 The figure for the three months ended June 30, 2022 is calculated by reflecting the revision of core profit (“new standard”). The figure for the three months ended June 30, 2021 is recalculated based on new standard and the figure before recalculation was 39.4 billion yen.

*4 Value of new business states the Value of new policies (including conversion policies) sold during the appropriate fiscal year.

2

Summary of Financial Results

3. Diversification of business portfolio

(Sum of T&D Asset Management, Pet & Family Insurance, and T&D United Capital(Consolidated))

(Billions of yen)

1Q2021

1Q2022

Adjusted profit*

2.3

10.6

Net income (net loss)

(54.3)

(86.0)

  • 4. Earnings Forecast for the Year Ending March 31, 2023 and Shareholder Returns

(Billions of yen)

  • Adjusted profit increased from previous fiscal year levels due to favorable investment profit of T&D United Capital.
  • Net income decreased year on year mainly due to temporary valuation losses related to Fortitude on accounting resulting from an increase in U.S. interest rate .
  • There is no change to earnings forecast and annual dividend per share forecast, which released on May 13, 2022.

FY2021

FY2022

(Result)

(Forecast)

Group adjusted profit *

39.2

106.0

Profit attributable to owners of

14.1

17.0

parent

The annual dividend per share for the fiscal year ending March 31,

2023 (forecast) is to be increased by ¥6.0 to ¥62.0 per share. The

Company will raise dividends for 8 terms in a row.

FY2021

(Result)

Annual dividend per share

¥56.0

interim

¥28.0

FY2022

(Forecast)

¥62.0

¥31.0

* Adjusted profit is one of the indicators to measure the actual business conditions. This is

calculated by reflecting the adjustment of temporary valuation gains or losses resulting from

market fluctuations on accounting etc. to net income.

Overview of T&D Insurance Group’s Financial Results

(Billions of yen)

1Q2021

1Q2022

Change

Ordinary revenues

570.0

752.3

182.2

+32.0%

Income from insurance premiums

463.0

535.5

72.4

+15.6%

and others

Investment income

82.4

194.0

111.6

+135.4%

Interest, dividends and income

74.7

86.4

11.6

+15.6%

from real estate for rent

Other ordinary income

24.5

22.7

(1.8)

(7.4%)

Ordinary expenses

587.7

795.5

207.7

+35.4%

Insurance claims and other

361.0

568.4

207.4

+57.4%

payments

Provision for policy and other

82.0

8.1

(73.8)

(90.0%)

reserves

Investment expenses

13.4

49.8

36.4

+270.6%

Equity in losses of affiliates

56.7

88.4

31.6

+55.7%

Ordinary profit (loss)

(17.7)

(43.2)

(25.5)

Extraordinary gains/losses

(2.0)

(2.3)

(0.2)

Provision for reserve for

5.5

5.3

(0.1)

(3.3%)

policyholder dividends

Income before income taxes

(25.3)

(51.0)

(25.6)

Total income taxes

6.4

8.2

1.7

+26.7%

Profit attributable to owners of

(31.8)

(59.2)

(27.3)

parent (net loss)

Group adjusted profit

24.1

38.6

14.5

+60.2%

Notes 1. “Change” is presented in comparison with the same period of the previous fiscal year.

2. Figures for the three months ended June 30, 2021 are after retrospective accounting treatments in connection with the group restructuring in Fortitude announced on October 1, 2021.

Factors of Increase/Decrease

  • Mainly due to an increase in interest and dividends of foreign securities, etc.

②③ An increase in payment of matured endowment and annuity

  • An increase in currency hedging costs, etc.
  • Fortitude’s temporary valuation losses on accounting and others

[Reference] Impact of Retrospective Accounting Treatment in connection to the Group Restructuring in Fortitude

(Billions of yen)

1Q2021

Before

After

Ordinary expenses

588.1

587.7

Equity in losses of affiliates

57.1

56.7

Ordinary profit (loss)

(18.0)

(17.7)

Income before income taxes

(25.7)

(25.3)

Total income taxes

6.8

6.4

Profit attributable to owners of parent

(32.5)

(31.8)

(net loss)

Group adjusted profit is one of the indicators to measure the actual business conditions of the Group. This is calculated by reflecting the adjustment of temporary valuation gains or losses, etc. resulting from market fluctuations on accounting etc. to net income.

4

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Disclaimer

T&D Holdings Inc. published this content on 10 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 August 2022 06:23:44 UTC.

Publicnow 2022

All news about T&D HOLDINGS INC.

Sales 2023 2 277 B
16 871 M
16 871 M
Net income 2023 44 650 M
331 M
331 M
Net Debt 2023

P/E ratio 2023 20,3x
Yield 2023 4,23%
Capitalization 810 B
6 000 M
6 000 M
Capi. / Sales 2023 0,36x
Capi. / Sales 2024 0,35x
Nbr of Employees 19 645
Free-Float 87,3%



Duration :


Period :




T&D Holdings Inc. Technical Analysis Chart | MarketScreener

Technical analysis trends T&D HOLDINGS INC.

Short Term Mid-Term Long Term
Trends Bearish Neutral Neutral



Income Statement Evolution

Sell

Buy

Mean consensus OUTPERFORM
Number of Analysts 12
Last Close Price 1 452,00 JPY
Average target price 1 947,27 JPY
Spread / Average Target 34,1%




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