Lifenet Insurance (7157): FY2025 Results Summary — Net Income Jumps to ¥8bn as Insurance Service Results Top ¥10bn

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Lifenet Insurance Company (Securities Code: 7157, TSE Prime), an online life insurer, released its presentation material for fiscal 2025 on May 13, 2026. Insurance service results reached ¥11,606mn (+21.2% YoY), surpassing the ¥10bn mark, with net income attributable to owners of the Company showing a major jump to ¥8,041mn. Comprehensive Equity (CE), the Group’s corporate value indicator, stood at ¥176,149mn (YoY 105.4%), and annualized premium of policies-in-force reached ¥37,290mn (YoY 108.0%).

Consolidated Results (IFRS, Full Year)

Insurance service results grew substantially by 21.2% YoY to ¥11,606mn, surpassing the upwardly revised forecast of ¥11,200mn announced in February (103.6% vs. forecast). The company states the growth was driven by lower-than-expected incurred claims in individual life and group credit life insurance (GCL). Insurance revenue rose from ¥30,081mn in FY2024 to ¥34,388mn. Financial results turned positive to ¥266mn, which the company attributes to higher interest income from additional corporate bond purchases, and profit before tax reached ¥11,389mn.

Item (JPY millions)	FY2024	FY2025	Change
Insurance service results	9,576	11,606	2,029
Financial results	(33)	266	300
Other results	(363)	(483)	(119)
Profit before tax	9,179	11,389	2,210
Net income attributable to owners of the Company	5,993	8,041	2,048

By component, the YoY increase of ¥2,029mn in insurance service results was driven by results from GCL (+¥1,352mn) and a larger favorable gap between expected and incurred claims (+¥371mn), partly offset by reinsurance results ((¥459mn)).

Item (JPY millions)	FY2024	FY2025	Change
Expected claims minus incurred claims	191	563	371
Risk adjustment release	1,612	1,676	63
CSM release	7,440	7,871	431
Reinsurance results	(929)	(1,388)	(459)
Others	(314)	(45)	269
Results from GCL	1,575	2,928	1,352
Insurance service results	9,576	11,606	2,029

Business Performance: Individual Life and GCL

Annualized premium (AP) of policies-in-force resulted in ¥37,290mn, achieving steady growth of 8.0% YoY. Of this, individual life insurance accounted for ¥28,718mn and group credit life insurance (GCL) for ¥8,571mn. In individual life, the number of policies-in-force rose from 637,417 to 686,237 and the number of policyholders from 401,897 to 428,182 over the year. The company notes that enhanced marketing strategies drove top-line growth, with insurance acquisition cash flows per new business improving by ¥13 thousand.

In GCL, sales through au Jibun Bank strongly contributed to key indicators, and results from GCL reached ¥2,928mn with GCL contracts value of ¥15,315mn as of March 2026. GCL accounted for 23.0% of AP of policies-in-force and 25.2% of insurance service results. During the year Lifenet achieved its first non-group partnership with THE KYOTO SHINKIN BANK in GCL, with the collaboration set to launch in July 2026.

Comprehensive Equity, CSM and Financial Soundness

Comprehensive Equity — the sum of IFRS equity, tax-adjusted CSM and GCL contracts value — increased to ¥176,149mn (YoY 105.4%), driven by new business CSM and assumption changes even while affected by rising interest rates. Pre-tax CSM at the end of the period grew 5.8% YoY to ¥97,385mn, supported by highly efficient new business acquisition in individual life and assumption changes. Internal ESR stood at 394% (preliminary, up from 356% a year earlier), and the newly disclosed Regulatory ESR was 333%, which the company describes as sustained robust financial soundness through valuable risk-taking.

Item (JPY millions)	FY2024	FY2025
CSM, beginning of the period	92,173	92,059
New business CSM	3,486	4,726
Interest accretion	952	1,020
Assumption changes, etc.	2,887	7,450
Amortization of CSM	(7,440)	(7,871)
CSM, end of the period	92,059	97,385

FY2026 Forecast

For FY2026, Lifenet projects steady growth in policies-in-force, with AP of policies-in-force expanding by approximately ¥2,000mn in individual life and approximately ¥1,900mn in GCL to ¥41,300mn. Insurance service results are forecast at ¥11,200mn: the company explains they will increase excluding the impact of favorable claims experience in FY2025, which included a favorable variance of approximately ¥1,000mn versus forecast. Net income attributable to owners of the Company is forecast at ¥8,200mn.

Item (JPY millions)	FY2025 Results	FY2026 Forecasts
Annualized premium of policies-in-force	37,290	41,300
Insurance revenue	34,388	37,500
Insurance service results	11,606	11,200
Net income attributable to owners of the Company	8,041	8,200

Shareholder Returns

Lifenet has yet to determine its specific dividend policies and dates for the start of distributing retained earnings, as it prioritizes strengthening its growth base to increase mid- to long-term profitability, and it aims for the increase in total shareholder return by capital gain. On a statutory accounting (J-GAAP) basis — which governs capital adequacy and dividends — the company achieved profitability for the first time, driven by the strengthening of modified co-insurance, etc., with ordinary profit of ¥2,857mn and net income of ¥3,406mn, while retained earnings remained negative at (¥31,290mn) at the end of FY2025.

Medium-Term Plan and Topics

FY2025 was the second year of the FY2024-2028 mid-term business plan, whose fiscal 2028 goals are Comprehensive Equity of ¥200-240bn, a stock price of ¥3,000+, and an annual growth rate of CE per share of approximately 10%. Against these, FY2025 results were CE of ¥176bn, a CE per share growth rate of 5.4%, and a stock price of ¥2,011 (closing price as of the end of March). During the year the company stepped up to the TSE Prime Market, and it announced a capital and business alliance with JAL (presentation dated April 30, 2026), aiming to further expand its partner business by accessing a massive ecosystem comparable to the KDDI Group and SMBC Group, with JAL bringing approximately 41 million JMB members. In FY2026, the third year of the plan, Lifenet plans a product revision starting June 2026 featuring age limit expansion and reduced minimum protection amounts, and will advance strategies adapting to technological integration and changing interest rate trends.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.