Performance and Operational Review

Daido Life's sales activities target the SME market. Policies from the corporate market^*1 accounted for approximately 93% of the company's new policy amount in fiscal 2014.

For fiscal 2014, Daido Life's new policy amount was up 9.9% year on year to ¥4,063.8 billion^*2. This increase was mainly due to the strong sales of term life insurance and the T-type product (non-participating disability income insurance) which was launched in September 2014. Meanwhile, the surrender and lapse amount was down 6.3% to ¥2,378.3 billion^*2. Consequently, the policy amount in force^*2 was up 2.4% to ¥38,156.7 billion, marking a net increase for the third consecutive year.

MCEV was ¥1,306.7 billion as of March 31, 2015, an increase of ¥160.8 billion. This was mainly due to the increase in the adjusted net worth which reflected the accumulation of net income and the increase of unrealized gains on securities as well as the acquisition of new policies and an improvement in the mortality rate and surrender and lapse rate.

1. *1 The total of collective policies for individual insurance and individual annuities and group insurance policies.
2. *2 The sum of the policy amount of individual insurance and individual annuities (death benefit and living protection amounts), and the insured amount for critical illnesses for the J-type product (non-participating critical illness insurance) together with the insured amount for disability income protection for the T-type product (non-participating disability income insurance).

Policy Amount in Force

New Policy Amount and Share of J-type and T-type product