Earnings

In fiscal 2014, ordinary profit rose due to an increase in net investment income. Net income increased sharply to a new record.

Ordinary Profit/Net Income (Consolidated)

Ordinary profit increased ¥2.7 billion year on year to ¥188.9 billion owing to higher net investment income, which mainly reflected a decline in investment expenses. Net income increased ¥15.2 billion year on year to ¥94.2 billion. The increase in net income mainly reflected a decrease of ¥19.5 billion in the additional provision for reserve for price fluctuations, despite an increase of ¥9.1 billion in total income taxes from the reversal of deferred tax assets in line with a reduction in the corporate income tax rate.

Core Profit

Core profit for the three life insurance companies decreased ¥27.4 billion year on year to ¥182.7 billion. The main reason was a decline of ¥20.0 billion in T&D Financial Life's core profit due to the decrease in the reversal of policy reserve related to minimum guarantee risk for variable annuities.

The positive spread for the three life insurance companies increased ¥1.2 billion year on year to ¥34.5 billion.

Fiscal 2015 Forecasts

Ordinary profit and net income attributable to owners of parent are projected to go down 11.6% and 17.2%, respectively. This outlook is mainly based on the sales limitation of single-premium products at Daido Life and Taiyo Life, an anticipated decline in interest, dividends and income from real estate for rent in line with a continuation of low interest rates, and a decrease in net gains and losses related to the minimum guarantee for variable annuities at T&D Financial Life.

Moreover, considering that Taiyo Life is planning an additional provision for reserve for price fluctuations of ¥15.0 billion, adjusted net income, which represents profit available for shareholder returns, is forecast at ¥88.0 billion.

Fiscal 2015 Forecasts