the dai-ichi life insurance company, limited investor ... · market trend and forecast. 8 0 10 20...

The Dai-ichi Life Insurance Company, Limited

Investor Presentation: Product Strategies

Product Development and Management Unit,The Dai-ichi Life Insurance Company, Limited

March 27, 2014

[table of contents]

I. Review of Business Results

II. Market Trend and Forecast

III. Initiatives on Product Development

IV. Recent Product Development

1


2

1,097 1,138

1,303 1,331 1,365

0

500

1,000

1,500

Mar-09 Mar-10 Mar-11 Mar-12 Mar-13

12,254 12,204

12,406

12,661

12,873

11,000

11,500

12,000

12,500

13,000


• As we launched products that cater to the changing needs of customers, we increasedboth the number of new policies and in-force policies.

3


Number of policies in-force Number of new policies

Trend in Number of Policies, Individual Business

(thousands) (thousands)

(fiscal year ended) (as of)

120.4 119.6128.1 128.0

149.7

40.6 36.4 42.5 41.9 40.5

0

50

100

150


New business ANPNew business ANP from 3rd Sector

2,052.4 2,020.4 2,013.8 2,006.8 2,025.9

492.7 494.8 506.6 515.0 522.5

0

500

1,000

1,500

2,000


ANP in-forceANP in-force from 3rd Sector

4

• In the fiscal year ended Mar-13, we increased new business ANP.• ANP in-force from 3rd sector (medical & nursing care products) is steadily growing.

Annualized Net Premium (ANP) from Individual Business

ANP in-force New Business ANP


(billions of yen) (billions of yen)


40.6 36.4

42.5

41.940.5

45.9

46.1

36.5 36.4

40

43.3

48.5

43.8

39

36.5

26.824.7

21.9 20.622.8

20

25

30

35

40

45

50


Dai-ichi Life Peer A Peer B Peer C

492.7 494.8 506.6 515.0 522.5 575.2 585.4 589.1 590.0 592.3

480.0 491.7 499.9 504.1 504.6

338.8 337.6 337.1 336.8 338.4

300

400

500

600


Dai-ichi Life Peer A Peer B Peer C

• We positioned 3rd sector as one of the growth areas in the domestic market andactively promoted products/riders.

• As a result, we successfully increased ANP from 3rd sector insurance.

5

ANP in-force for 3rd Sector

ANP from 3rd sector

New Business ANP for 3rd Sector


(billions of yen) (billions of yen)



6

7

Protectionfor family

pension needs

Protectionfor medical & pension needs

pension needs

Protectionfor medical & pension needs

Protectionfor family

0

5

10

15

20

25

07/3 08/3 09/3 10/3 11/3 12/3 13/3

Individual LifeIndividual AnnuityMedical etc.

5 year average

4.1%

0.8%

2.5%

1.6%

Outstanding growth in single premium whole life products through bancassurancechannel as a substitute for term deposit

(trillions of yen)(million)Population in 1985

Population in 2025(million)

■ Change in Population and Protection Needs ■ In-force ANP of Japanese Life Companies

(Source) National Institute of Population and Social Security Research (Source) Company disclosure, Life Insurance Laboratory, Life Insurance Association of Japan

0.0

0.5

1.0

1.5

2.0

2.5

3.0

0 20 40 60 80 100

0.0

0.5

1.0

1.5

2.0

2.5

3.0

0 20 40 60 80 100


8

0

10

20

30

40

50

60

4.0

4.5

5.0

5.5

Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17

(trillion

yen)(trillion

yen)

(Source) Company forecast

Forecast Forecast

■ Trend in 3rd Sector in-force ANP ■ Trend in Single Premium Individual Annuities

(as of)

Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17(as of)


9

1.7 1.8 1.9

1.4 1.2 1.1

1.8 1.9 2.1

5.1 5.2 5.3

0.0

1.0

2.0

3.0

4.0

5.0

6.0(trillion yen)

3rd sector totalWaiver of premium

Living benefit

Medical rider

Stand-aloneMedicalproduct

Medicalbenefit

■ Forecast for 3rd sector in-force ANP (by segment)

Forecast

Mar-09 Mar-11 Mar-13 Mar-15 Mar-17 Mar-19 Mar-21 Mar-23 Mar-25(fiscal year ended/ending)


(Source) Company forecast


- pioneering various leading products -

10

11

• Faced with the aging society and the progress in medical technology, Dai-ichi Life has shifted itsproduct lineup to living needs benefits, and pioneered various products to cater to the changing needsof our customers.

• Dai-ichi Life has offered customers the widest coverage in the industry and was the first insurer tointroduce 1) premium waiver rider, which grants the policyholder an exemption from premiumpayments thereafter for the life of the policy under certain conditions, and 2) medical riders linked tothe public health insurance system and covering surgeries with/without hospitalization, both of whichwere followed by our competitors later.

• By fully leveraging the product development know-how accumulated over our history, Dai-ichi Lifeintroduced new core products (“Bright Way” and “Crest Way”) in January 2014 under the “LifelongPartner - With You Project” (1).

Proactive Product Development

(1) “Lifelong Partner - With You Project”


In “Lifelong Partner – With You Project”,

we aim to ensure our customers' peace

of mind by providing life insurance and

offer excellent health support services

to our customers by leveraging the

strong teamwork of all our staff with

specialized expertise.

Lifelong Partner Across Generations

Launch Rider Payment Criteria

Oct. 1995

Physical Disability Rider

Fixed benefit is paid if diagnosed with physical disorder (such as hemiplegia, pacemaker, artificial bladder etc.) or death caused by diseases. In Oct. 1997, another rider covering physical disorder or death caused by diseases and accidents was launched.

Apr.1998

“Intractable Disease Rider” Fixed benefit is paid if diagnosed with intractable disease as defined by the government

Oct.1999

“Premium Waiver Rider”

Premium payment is waived upon occurrence of 3 major diseases (cancer, acute myocardial infarction (AMI) & stroke) and physical disorder. In July 2001, the coverage was expanded to when the insured needs long-term nursing care.

Apr.2004

Supplementary Income Rider “Income Support”

Whole life annuity are paid if diagnosed with 3 major diseases (cancer, AMI & stroke), physical disorder and the insured needs Long-term Care. In Jan 2014, Fixed-term annuity was also made available.

Apr.2004

Female-Specific Cure Rider

Fixed benefit is paid when: operations on breast cancer , uterus and ovaria. Breast reconstruction surgery due to mastectomy was included.

Apr.2007

Comprehensive Medical Rider

Fixed benefit is paid when: surgery, hospitalization and radiation treatment as specified by the public health insurance system (with/without hospitalization).

Sep.2010

Hospitalization Rider due to 8 lifestyle-related diseases

Fixed benefit is paid if diagnosed with 8 lifestyle-related diseases (malignant neoplasm, diabetes, cardiovascular disease, hypertensive disease, cerebral vascular disorders, hepatic disease, pancreas disease, kidney disease)

Jan.2014

Full-scale Protection Rider “Assist Seven Plus”

Fixed benefit is paid if diagnosed with 3 major diseases (cancer, AMI & stroke), 3 major physical conditions (physical disorder, serious disability & need of long-term nursing care), death. Plus, “Care Level 1” under the public nursing care insurance system and “Disability Grade 1 to 4” under the Physically Disabled Persons Welfare Act.

12

Products/Riders that were industry firsts



13

IV. Recent Product Development(Distribution of number of new policies for the Six Months Ended September 2013)

0～4 5～9 10～14 15～19 20～24 25～29 30～34 35～39 40～44 45～49 50～54 55～59 60～64 65～69 70～74 75～79 80～84 85+

Population Pyramid in JapanGrand Road (single premium whole life)Mickey (Juvenile)Shiawase Monogatari (Deffered Annuity)Medical Yell <whole life-type>Medical Yell <term-type>Jumpu Life(whole life w/dividends)OthersActual (Apr.-Sep. 2010)

Children Youth Core Seniors 14

<Customer Profile>• Customers with highest life time

value<Our Approach>• New customer acquisition with

stand-alone medical products<Products launched>• 2011.1 Medical Yell <Term-type>• 2013.4 Jumpu Life - Junior• 2014.1 Bright Way - Junior

<Customer Profile>• Children of Baby boomers: Future largest

market• Diversified customer needs due to change in

household composition and lifestyle• Comparison-oriented product selection<Our Approach>• Providing main products w/living benefits• Protection products (regular premium),

through insurance shops and bank counters, to be provided by a prospective new subsidiary (now known as DIY Life)

<Products launched>• 2010.9 Jumpu Life • 2014.1 Bright Way

<Customer Profile>• Baby boomers : Largest market• Medical, nursing and savings needs<Our Approach>• Medical & Nursing products• Savings-type products<Products launched>• 2011.1 Medical Yell<Whole life-type>• 2011.8 Grand Road• 2014.1 Crest Way

15

Launch Rider Payment Criteria

Indi

vidu

alsa

ving

s Jan.2006

Fixed Annuity“ShiawaseMonogatari”

Risk selection for the product is based only on the applicants’ occupation.Higher the premium, higher the investment return. Annuity amount is known at the time of signing, providing visibility for post-retirement life.

Aug.2011

Single Premium Whole Life“Grand Road”

Simple signing procedure without health declaration.Easy to understand: sum insured and surrender value are same with premium paid, irrespective of insured person’s age/gender.

Apr. 2013

Juvenile Insurance “Mickey”

To better tap the elderly and grandparent market, signing procedure was made simple without health declaration and medical check. Also plans without Premium Waiver rider were made available.

Med

ical

and

nur

sing

car

e Jan.2011

Term-type & whole life-type medical product “Medical Yell”

Term-type for child & youth age brackets as well as female; whole life-type for seniors age bracket

Jan.2011 “Medical Switch”

Provides an option to the policyholders with old medical rider to convert their policy to the latest medical product “Medical Yell” (whole life-type), without medical screening.

Jan.2014

Whole life nursing care annuity “Crest Way”

Expanded payment criteria for long-term nursing care annuity for a lifetime:In addition to “Care Level 2 and above” under the public nursing care insurance system, we provide unique coverage of “Equivalent to Care Level 2 and above”.

Jan.2014

Whole life insurance“Bright Way”

Whole life insurance with full-scale protection rider “Assist Seven” & “Assist Seven Plus”

Growth Areas (savings-type products, medical and nursing care products)


16


“Assist Seven” riderHigh level of coverage (30 million yen maximum payment) for seven risks (cancer, acute myocardial infarction (AMI), stroke, need of long-term care, physical disorder, serious disability and death)

“Assist Seven Plus” riderIn addition to the coverage of “Assist Seven” rider, provide coverage for the other five payment requirements (cancer in situ, hospitalization for AMI and stroke, “Care Level 1” under the public nursing care insurance system and “Disability Grade 1 to 4” under the Physically Disabled Persons Welfare Act)

Waiver of premiumWhen diagnosed with cancer, AMI, stroke, need of long-term care and physical disorder, future premium payment will be waived (providing simple coverage, linked to payment requirements of “Assist Seven” rider).

Comprehensive protection product based on whole life insurance, adding riders covering medical and survival benefitsWider coverage from death protection to survival benefit

“Bright Way”, whole life insurance(with dividend every 5 years)

■ Features of New Product Launched in January 2014

Whole life insurance

Assist Seven rider

Assist Seven Plus rider

Ino Ichiban NEO rider(60day type)Eight lifestyle-related disease hospitalization rider (120day type)

Advanced medical care rider

10,000 yenper day

1 million yen

29 million yen

0.3 million yen

Monthly premium for typical policy design (35 year old male): 21,495 yen(paid-up: 65 years old, level premium, renewal in every 10 years)

* with Waiver of premium rider

10,000 yenper day

17


■ Features of New Product Launched in January 2014

Lowering premium by removing surrender value and being prepared for nursing care protection with reasonable premium

When qualified as “in need of long-term care”, nursing care annuity will be paid as long as the insured survives.

Introducing benefit payment linked to the public nursing care insurance system (meeting on or above Care Level 2), in addition to our unique payment requirement (equivalent to the status on or above Care Level 2 under the system)

Being prepared for unexpected expenditures (home renovation related to nursing care etc.) by adding “Assist Seven” and “Assist Seven Plus” riders. Thus, further strengthening “protection for survival”

Introducing “adult guardianship” support, which helps an insured having difficulty in making claims due to illnesses including dementia

Nursing care insurance 1.2 million yen

annuity

Assist Seven

Assist Seven Plus

Ino Ichiban NEO

【 Examples of available riders 】

Monthly premium for typical policy design (60 year old male): 21,058 yen

Fulfilling lifetime nursing care coverageNursing care / medical oriented insurance meeting needs for medical protection

“Crest Way”, whole life nursing care insurance(with dividend every 5 years, without surrender value)

The Dai-ichi Life Insurance Company, LimitedInvestor Relations CenterCorporate Planning Department+81 50 3780 6930

Investor Contact

DisclaimerThe information in this presentation is subject to change without prior notice. Neither this presentation nor any ofits contents may be disclosed or used by any other party for any other purpose without the prior written consent ofthe Company.

Statements contained herein that relate to the future operating performance of the Company are forward-lookingstatements. Forward-looking statements may include – but are not limited to – words such as “believe,”“anticipate,” “plan,” “strategy,” “expect,” “forecast,” “predict,” “possibility” and similar words that describe futureoperating activities, business performance, events or conditions. Forward-looking statements are based onjudgments made by the Company’s management based on information that is currently available to it and aresubject to significant assumptions. As such, these forward-looking statements are subject to various risks anduncertainties and actual business results may vary substantially from the forecasts expressed or implied in forward-looking statements. Consequently, you are cautioned not to place undue reliance on forward-looking statements.The Company disclaims any obligation to revise forward-looking statements in light of new information, futureevents or other findings.

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