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1、By Your Side,For Life?C o n t e n t sSustainability&Management BaseMessage from the CSuOSustainability Promotion59Initiatives to Respect Human RightsAddressing Climate Change:Disclosure Based on the TCFD RecommendationsGFANZContribution To International Rulemaking To Address Climate ChangeHuman Capi
2、tal Management Strategies62637173Message from the CIO/CDODX&Innovation Promotion81GovernanceDiscussion with DirectorsCorporate GovernanceKnowledge and Experience of the Companys Directors(Director skill matrix)The Succession Plan/Developing the Next Generation of LeadersInitiatives for Improving the
3、 Effectiveness of the Board of DirectorsOfficer RemunerationEstablishment of Internal Control and Its Operation/ComplianceRisk ManagementIT GovernanceGroup Tax Governance/Internal AuditsEquity Holdings Other Than Those HeldSolely for the Purpose of InvestmentBusiness Management Quality ReformLeaders
4、hip83899993IntroductionContentsEditorial PolicyGroup MissionGroup at a GlanceOur Long-Term Vision and the Road Map to Its Realization12357Value CreationValue Creation ProcessCapital of Dai-ichi Life GroupStakeholder Expectations and InitiativesValue Co-Creation Story:CustomerVa
5、lue Co-Creation Story:EnvironmentValue Co-Creation Story:SocietyMaterial Issues of the Dai-ichi Life GroupExpected Future Social and Market Trends72931Strategies&PerformanceFY20212023 Medium-term Management Plan(MMP)33Message from the CFOFinance and Capital Strategy35CX Design StrategyVis
6、ion for CX Design StrategyProtectionAsset Formation/SuccessionHealth and Medical CareEnhancing ConnectionsOverseas Business Strategy453MessageMessage from Our New CEO9Management Team with Diversity16DataFinancial and Non-Financial HighlightsIndustry DataOur Businesses WorldwideDomestic In
7、surance BusinessOverseas Insurance Business Company ProfilesOther Business(Asset Management Business)Summary of Consolidated Group Business ResultsFinancial and Non-Financial Historical DataParticipation in External Initiatives/Dialogue with StakeholdersMajor Awards for the Groups InitiativesCorpora
8、te and Financial DataGlossary of TermsExecutive officer guarantee277258Abbreviations of Group CompaniesProtectiveProtective Life CorporationTAL TAL Dai-ichi Life AustraliaPartners LifePartners Group HoldingsDai-ichi Life Vietnam Dai-ichi Life Insurance Company of Vie
9、tnamDai-ichi Life Cambodia Dai-ichi Life Insurance(Cambodia)Dai-ichi Life MyanmarDai-ichi Life Insurance MyanmarPLC TAL PNZDLVN DLKH DLMM Star Union Dai-ichi LifeStar Union Dai-ichi Life Insurance CompanyPanin Dai-ichi LifePT Panin Dai-ichi LifeOCEAN LIFEOCEAN LIFE INSURANCE PUBLIC COMPANYDai-ichi R
10、e Dai-ichi Life Reinsurance BermudaSUD PDL OLI DLRe Domestic Insurance BusinessDL DFL NFL ipetDai-ichi LifeDai-ichi Frontier LifeNeo First LifeipetOther Business(Asset Management Business)AMOne Asset Management OneVTX Vertex Investment SolutionsOverseas Insurance BusinessEditorial PolicyDai-ichi Lif
11、e Holdings Integrated Report is designed to inform customers,shareholders,investors,and other stakeholders of our efforts to solve social issues through our business and create sustainable value for our Group.In preparing the Integrated Report,we refer to the International Integrated Reporting Frame
12、work recommended by the IFRS Foundation,the Guidance for Collaborative Value Creation by the Ministry of Economy,Trade,and Industry,and the Sustainability Reporting Standards by the Global Reporting Initiative(GRI).Through this report,we provide a deeper understanding of the Groups sustainable value
13、 creation efforts to realize our vision,“Protect and improve the well-being of all,”by introducing our renewed value creation process.This is based on an awareness of risks and opportunities,as well as our efforts to co-create value in cooperation with stakeholders.We will endeavor to systematically
14、 summarize financial and non-financial information and communicate the Groups initiatives for sustainable value creation in a clear and comprehensible manner.This report constitutes disclosure materials(explanatory documents on business and property status)prepared in accordance with Articles 271.25
15、 and 272.40 of the Insurance Business Act and Articles 210.10.2 and 211.82 of the Enforcement Regulations of the Insurance Business Act.External EvaluationFTSE4GoodIndex SeriesFTSE BlossomJapanIndexS&P/JPX Carbon Efficient Index MSCI Japan Empowering Women Select Index*Dow JonesSustainabilityAsia Pa
16、cific IndexThe Dai-ichi Life Group has been evaluated highly in Japan and overseas for efforts in interacting closely with customers and local communities,and disclosing ESG information through its business activities and social contribution activities.ESG indices the Dai-ichi Life Group is included
17、 in*As of July 2023 The Dai-ichi Life Groups Philosophy(Mission,Vision,Values,Brand Message)Medium-term Management Plan“Re-connect 2023”Aims of the Dai-ichi Life GroupPlease also see the information featured on our website.https:/www.dai-ichi-life- Story Sustainability/ESG Information Corporate Gove
18、rnance Report*Sustainability Report Sustainability Website*Legal disclosure and timely disclosure documentsComprehensiveness Integrated Report Disclosure System Website Information Annual Securities Report*Summaries of Financial Results*Business Report*Medium-term Management PlanIR WebsiteInformatio
19、n for Shareholders and Investors Future Finance*The inclusion of Dai-ichi Life Holdings in the MSCI Indexes and the use by Dai-ichi Life Holdings of the MSCI logo,trademark,service mark,or index name do not represent sponsorship,endorsement,or promotion of Dai-ichi Life Holdings by MSCI or its affil
20、iates.MSCI Indexes are the exclusive property of MSCI.MSCI and the MSCI Index names and logos are trademarks or service marks of MSCI or its affiliates.12IntroductionMessageValue CreationStoryStrategies&PerformanceSustainability&Management BaseGovernanceDataDai-ichi Life Holdings Integrated Report 2
21、023ValuesDai-ichis Social Responsibility Charter(DSR Charter)BrandMessagePeople FirstVisionProtect and improve the well-being of allBy your side,for lifeGroup Missionwell-beingCommitted to Under the Group Vision“Protect and improve the well-being of all,”to continue to be“By your side,for life”with
22、our customers and their loved ones,each group company contributes to the well-being of all people around the world,allowing them to lead prosperous and healthy lives with peace of mind for generations to come.34IntroductionMessageValue CreationStoryStrategies&PerformanceSustainability&Management Bas
23、eGovernanceDataDai-ichi Life Holdings Integrated Report 2023ThailandVietnamCambodiaIndiaIndonesiaMyanmarJapan AustraliaNew ZealandU.S.A.Japan13.5%ShareInsurance premiums and other incomeNo.2*Vietnam12.3%SharePremium incomeSource:Insurance Association of VietnamNo.4First-year premiumSource:Insurance
24、Association of CambodiaCambodiaNo.6New business annualized net premiumSource:Myanmar Insurance Association*Excluding state-owned companiesMyanmarNo.7*New business premiumSource:IRDAINo.11IndiaPremium income Source:Thai Life Insurance AssociationNo.9ThailandU.S.A.US993.7 billionLife insurance amount
25、of policies in forceNo.13Asia PacificNorth AmericaAustralia33.6%ShareIn-force policies annualized net premiums(securities)Source:Plan For LifeNo.New Zealand17.8%ShareIn-force policies annualized net premiums Source:FSC Insurance Market StatisticsNo.2Source:S&P Global Market IntelligencePremium incom
26、eSource:Indonesian Life Insurance AssociationNo.14IndonesiaSource:Company data based on figures published by various companies*Total of domestic group companiesGroup at a Glance Domestic Insurance BusinessOther Business(Asset Management Business)*1 Non-consolidated subsidiary*2 Equity method affilia
27、tes112222Domestic businesses aimed at solving emerging social issues and reforming products and services to align with the trend of digitalizationProviding advanced asset management functions to support asset formationOverseas Insurance BusinessExpansion into nine countries at diverse stages of grow
28、th,from developed countries(stable markets)to emerging countries(growth markets and early stage)Global insurance group with operations in 10 countriesCorporate ValueMarket Capitalization2.4 trillionGroup EEV7.3 trillionTotal Shareholder Return(TSR)+37%(March 31,2021March 31,2023)Strong and Stable Fi
29、nancial SoundnessEconomic Solvency Ratio(ESR)226%Consolidated Solvency Margin Ratio704.1%Industry Leading ESG RatingsCDP(international environmental NGO)Selected as an A-list company(the highest rating)in a climate change studyDJSISelected as a constituent of the Dow Jones Sustainability Asia Pacifi
30、c IndexPRIWon the highest rating of“5”for investment,stewardship policies,and real estate investmentsGroup Assets and Profit ScaleTotal Consolidated Assets61.5 trillionConsolidated Net Assets2.8 trillionConsolidated Ordinary Revenues9.5 trillionGroup Adjusted Profit184.4 billionConsolidated Net Inco
31、me192.3 billionGroup Adjusted ROE5.0%Ratings(as of July 31,2023)Dai-ichi LifeDai-ichi Life HoldingsAA-(JCR)AA-(Fitch)A+(S&P,A.M.Best)AA(R&I,JCR)Business Segments and Group CompaniesFigures are as of the end of fiscal 2022,except where noted56Dai-ichi Life Holdings Integrated Report 2023IntroductionM
32、essageValue CreationStoryStrategies&PerformanceSustainability&Management BaseGovernanceDataValue up 2010Changes in Group EEV20112012Achieving recoveryand growthAfter the Great East Japan Earthquake(2011),contributed to domestic recovery and growth through steady payment of insurance claims20132014 T
33、oward making greater advancesAccelerated global expansion byexpanding into the U.S.market to promote life insuranceBegan expansion to improve well-being across a range of areas including healthcare,small-amount and short-term insurance20152017Achieving sustainablevalue creation Transitioned to a hol
34、ding company Established three domestic life insurance systems to flexibly respond to diverse customer needs20182020Toward growth through contribution to improving QOL20082010Flexible management strategies for value expansion in the futureChanged organization to a joint-stock companySecuring fundame
35、ntals for growth and completion of public listing20212023Toward transformationwith a stronger bond Started building digital infrastructure and transforming channels to provide the best Customer Experience(CX)Success 20202000010(in billions)7,150.97,349.06,
36、971.15,621.95,936.55,987.64,646.15,495.46,094.12,440.32,661.53,341.94,294.7(fiscal year)Since going public in 2010,the Dai-ichi Life Group has contributed to the popularization and development of life insurance in many countries,while flexibly responding to diversifying customer needs through life i
37、nsurance and other services.We will continue to grow,expand and explore new business opportunities while becoming a group that contributes to the well-being of people around the world by providing experiential values.Our Long-Term Vision and the Road Map to Its RealizationProtect and improve the wel
38、l-beingof all 78Dai-ichi Life Holdings Integrated Report 2023IntroductionMessageValue CreationStoryStrategies&PerformanceSustainability&Management BaseGovernanceData CEOWith our inherent “DNA of change and challenge,”we aim to become a global top-level insurance groupPresident and Representative Dir
39、ector(CEO)Dai-ichi Life Holdings,Inc.from Our New MessageMy name is Tetsuya Kikuta,and I was appointed president and CEO of Dai-ichi Life Holdings,Inc.,in April 2023.I believe that my major roles are to oversee the entire Group,optimize the allocation of management resources within the Group,and res
40、pond to the expectations of various stakeholders including shareholders,through deep dialogue as a listed company.When I became CEO,I set a goal of becoming one of the top global insurance groups by 2030.As a publicly listed company,our mission is to work to improve corporate value.My aspirations ar
41、e to first achieve an industry-leading level of corporate value in Japan by the end of fiscal 2026,then reach a level on par with the worlds top-tier insurance groups by 2030.Given our current position,these will not be easy to achieve.Nevertheless,I believe it is very important to verbalize our goa
42、ls and demonstrate our enthusiasm in an easy-to-understand manner.Rather than blindly following precedents,we should affirm new challenges as a whole company,keeping in mind the environmental changes that will occur in society and in the market.Instead of being afraid of a risk of failure,we should
43、imagine the fruits of success and take action.In so doing,we will further empower the“DNA of change and challenge”that flows through the Dai-ichi Life Group,and then pursue to return to growth in our domestic business,expand our overseas business,and create new businesses.Through those efforts,we wi
44、ll become a driving force toward the future of the insurance industry.910IntroductionMessageValue CreationStoryStrategies&PerformanceSustainability&Management BaseGovernanceDataDai-ichi Life Holdings Integrated Report 2023Take on new challenges and keep moving forwardAs an overseas business manager
45、in the early 2000s,I worked hard to establish a foothold for our business in Vietnam,Thailand,India,Australia,and Indonesia.My overseas experiences at that time had a great impact on the formation of my values.Never stay in the same place,but always move forward,even in the tough period.This is what
46、 I always keep in mind.COVID-19,which plunged the world into unprecedented turmoil,and the international discord triggered by the situation in Russia and Ukraine have not only heightened geopolitical risks but also caused great economic turbulence.On the other hand,it is needless to mention about th
47、e dramatic progress of technology including generative AI.Our business environment is undergoing significant changes,and the values and needs of our customers are becoming increasingly diverse.We need to change the products and services provided to our customers accordingly.If we cannot change,we wi
48、ll not remain trusted and supported by our customers.I do not mean to criticize our current situation,but if we remain stuck in past practices,our relative position will continuously decline.We must be willing to take on new challenges and keep moving forward.At the same time,we must keep our antenn
49、as wide and high,so that we can accommodate discontinuous events happening around the world.Aiming to be a top global insurance groupAs we strive to become a top global insurance group,I feel we have not been able to fully explain our situation to the capital market due to the complex nature of the
50、life insurance business.I recognize that this is one of the reasons why our company has not been evaluated appropriately by the market.When I was in the investment management department,we asked our investee companies to provide us with transparent explanations and timelines of what they plan to do
51、by when.From now on,I will remain aware of these points as I engage in dialogue with the market,and I look forward to hearing opinions from investors.At the same time,it is also important to return to a growth path in the domestic market.Due to COVID-19 and the cases of monetary fraud identified sin
52、ce October 2020,momentum in our domestic business has been weak.The domestic market,with its declining birthrate,aging and shrinking population ahead of most of the rest of the world,is challenging for life insurance companies.Dai-ichi Life,which is currently working on sales reforms,is introducing
53、a series of new initiatives,covering consulting process,setting targets for sales representatives,and even changing its hiring methods.This is a major shift from our traditional sales style and will involve temporary growing pains.However,I believe that the reforms we are undertaking now will be reg
54、arded as having created a new model for the domestic insurance industry in the future.On becoming CEOExpand existing business while exploring opportunities beyond insuranceTo be recognized by all stakeholders as a top global insurance group in the future,I believe we must focus on four priorities.Th
55、e first is“service innovation,”which means improving our insurance services by utilizing digital technology,and thus help improve convenience for people in society.The second is“customer satisfaction,”which means measuring whether the company is the most supported,trusted,and recommended by customer
56、s.The third is“employee engagement,”which means engaging with employees to achieve the industrys highest level of productivity and job satisfaction.And the fourth is increasing“corporate value.”I believe that the fourth factor,corporate value,will increase sustainably as the Looking ahead to the nex
57、t medium-term management plan and the futureReturning to a growth trajectory in the domestic businessSeeking to reinforce our business focusing on quality and productivity,we are working to reform the business model of retail sales activities in Dai-ichi Life.Here,my vision is to“transform our busin
58、ess into a new type of business derived from insurance.”We will be the side of our customers life more than ever before.This means forming an ecosystem to seamlessly provide not only insurance services in the narrow sense of the term but also the four experiential values:Protection,Asset Formation/S
59、uccession,Health and Medical Care,and Enhancing Connections.Not necessarily being the form of financial institution,we aim to transform ourselves into a company like new insurance service provider.In fiscal 2022,we welcomed ipet,a major pet insurance company,to the Group,and we will continue working
60、 to expand our business portfolio.Digital transformation(DX)is the key to significantly increasing customer experiential values and satisfaction through providing a wide range of services seamlessly.We will focus on the following three areas in particular.1.Emphasize frequent two-way digital communi
61、cation with customers2.Provide digital support for the sales channel,mainly of sales representatives3.Use data and AI to develop new products and servicesAlthough we are not necessarily in a position to be ahead of the curve,we are moving quickly to invest in each of these areas to achieve industry-
62、leading level on a global basis.On the other hand,doing everything in digital is not realistic.The key point will be how to integrate face-to-face services and consulting by sales representatives with digital technology to deliver high experiential value to customers.I envision a world where our sal
63、es representatives,supported by digital technology,can make recommendations with high experiential value,in the best timing and best manner from the customers perspective.As a result,it will also lead to a significant increase in productivity in the sales field.I believe that the reforms we are unde
64、rtaking now will be regarded by future generations as having created a new model for the domestic insurance industry.other three factors are positively evaluated by the capital market.We aim to achieve the top position in Japan for these four priorities by the end of fiscal 2026,the final year of th
65、e next medium-term management plan,then evolve and grow to the level of the worlds top insurance groups by 2030.To increase our corporate value,we need to implement both business and financial strategies in an integrated manner.In our business strategy,we will pursue“expanding existing business”and“
66、explore opportunities”simultaneously.In“expand existing business,”we aim to improve productivity and return to sustainable growth,especially in our domestic business.In“explore opportunities”we aim to expand the scope of our overseas business and develop new digital-related businesses.In our financi
67、al strategy,we will progress“capital circulation management”policy further,through which we aim to achieve both shareholder returns and strategic investments to utilize our capital more efficiently.1112IntroductionMessageValue CreationStoryStrategies&PerformanceSustainability&Management BaseGovernan
68、ceDataDai-ichi Life Holdings Integrated Report 2023Promote“capital circulation management”and improve capital efficiencyThe primary focus of our financial strategy is to improve capital efficiency.We transfer capital within the Group into the holding company to promote“capital circulation management
69、,”through which we optimally allocate capital to capital-efficient businesses and shareholder return.In the process,we will improve ROE,which indicates the capital efficiency of the entire Group.We recognize that the cost of capital that we currently disclose,i.e.what we consider to be the minimum r
70、eturn that the capital market expects from us,is 10%.However,our current ROE remains below our cost of capital.Our cost of capital which is around 10%is higher than that of a typical listed company.This is because our level of capital in terms of economic value is highly sensitive to macroeconomic c
71、onditions.If market risk can be reduced and the swing can be controlled,the cost of capital will decrease,and if ROE can be achieved in excess of that,the financial strategy will enter into a positive cycle.The goal of achieving a situation where ROE consistently exceeds the cost of capital during t
72、he period of next medium-term management plan period starting in fiscal 2024 is an intermediate milestone.When we achieve this,we can expect a certain increase in corporate value and retain more capital available for inorganic growth through M&As and the like.By deploying capital surplus generated,w
73、e can make larger and more aggressive strategic investments,thereby raising the speed and certainty of profit growth.There are only seven years left until 2030.That is not long at all.To remain on track to become a top global insurance group,we will put the finishing touches on“Re-connect 2023,”our
74、medium-term management plan,in the current fiscal year.We will then envision where we want to be in 2030 and work backward to define what we should do in the next medium-term management plan to make a better start in fiscal 2024.Empowerment of diverse talentsSince the transition to a holding company
75、 structure in 2016,Seiji Inagaki(now chairman)served as president of both Dai-ichi Life Holdings and Dai-ichi Life Insurance(operating company).Starting fiscal 2023,I serve as president of the holding company and Toshiaki Sumino serve as president of Dai-ichi Life Insurance.Dai-ichi Life Holdings wi
76、ll accelerate group-wide growth by optimizing governance and the business portfolios of its operating companies,while Dai-ichi Life Insurance will steadily grow its domestic life insurance business.By clarifying the roles of both companies in this way,we aim to go on to the next stage and become a g
77、lobal top-level insurance group that leads the future of Japanese insurance companies.In fiscal 2023,we have significantly expanded CXOs roles,and revamped and rejuvenated our management team.Many of the members have experience working overseas and are mid-career hires.Im proud that we have successf
78、ully built a diverse and highly professional management team that aligns with our expanding business domains.We will continue appointing the right professional talents to the right positions,from both internally and externally,to achieve bold change and growth with a sense of speed.The business doma
79、ins of our Group,including overseas and digital-related fields,are expanding.Accordingly,we will continue recruiting and promoting highly specialized talents,as we a need diversity in our employees to take on new challenges.In addition to hiring mid-career workers as a matter of course,we will activ
80、ely and appropriately appoint outstanding internal human resources,while also improving the expertise of employees through reskilling.It is an important mission of management team to realize a corporate culture that is flat,free,and open-minded,where employees can experience their own growth and tak
81、e pride and joy in their work.As we demand our employees to increase productivity,we are considering to raise a compensation,including the introduction of a stock-based compensation program for our employees.It is very important that employees feel the merit of being a listed company,have the same m
82、indset as our stakeholders,and share the effort to improve corporate value and enjoy the resulting economic benefits,through a stock-based compensation.P.33 Re-connect 2023P.35 Finance and Capital StrategyBuilding a foundation for transformationActively develop our overseas businessNext,I will talk
83、about the“exploring opportunities”aspect of our business strategy.Beginning with Vietnam in 2007,we have been expanding overseas business ahead of other domestic insurance companies.Now we are running business in nine countries in overseas.In recent years,our Australian subsidiary,TAL Dai-ichi Life
84、Australia Pty Limited(TAL),acquired Westpac Life Insurance Services Limited in fiscal 2021,thus solidifying TALs position as Australias largest life insurer.We then expanded into New Zealand with the acquisition of Partners Group Holdings Limited in fiscal 2022.Our overseas business already accounts
85、 for over 30%of the Groups adjusted profit.Especially in Vietnam,Australia,and the United States,we have already established large presence We expect our overseas business will account for about 50%of the Groups total profit by 2030.To further expand our overseas business,we must first achieve organ
86、ic growth in existing businesses.In countries where we already have a presence,we will pursue market share and scale by offering products and services that exceed those of our global peers,in addition to adopting strategies that ensure we meet the needs of each market.Inorganic growth through M&As i
87、s also essential to speed up business growth.M&A is the field that we can demonstrate our strength as a form of holding company.We will constantly monitor market trends,seize opportunities,and make prompt decisions to expand and diversify our business portfolio.In doing so,important perspective is w
88、hether there are the capabilities that we do not have.For example,strong digital capability,running businesses that are growing rapidly in short time periods,and are different from the traditional insurance industry.By inviting companies with such attributes and knowledge into the Group,we can creat
89、e a stronger ecosystem.We will expand the scale and fields of our overseas business,with high growth expectation,and pursue new businesses,including non-insurance areas as peripheral insurance services utilizing digital technology.In overseas countries,digital technology is proliferating more quickl
90、y than in Japan,leading to the emergence of companies offering experiential value that sets them apart from existing major players.In some cases,advanced business models have taken significant market share away from traditional insurance companies.In fiscal 2022,we invested in“exploration”to YuLife
91、Holdings Limited,in U.K.,which specializes in group insurance and handles all customer contacts digitally.This year,we also made an investment in RenewBuy,a digital insurance broker in India.By increasingly the connection with emerging companies that run high growth innovative business,we pursue bot
92、h“expanding existing business”and“exploring opportunities”with a flexible manner.Insurance business is localized because the regulation differs in each country,thus it is required to manage depending on the circumstances of each country.In principle,we delegate management of our overseas companies t
93、o local teams with in-depth market knowledge,and the holding company make sure that governance is effective.Close communication and speedy implementation of strategies have helped us grow and expand our overseas business.We have also resumed our meetings of CEOs from each country in fiscal 2023,whic
94、h had been suspended due to COVID-19.It reminded me of the importance of face-to-face meetings,rather than talking to a screen.We will continue to emphasize communication with local management and employees to promote group management with a sense of unity in order to share the same values and aim f
95、or value creation in all companies,in our group,both in Japan or overseas.P.16 Management Team with DiversityP.73 Human Capital Management Strategies1314IntroductionMessageValue CreationStoryStrategies&PerformanceSustainability&Management BaseGovernanceDataDai-ichi Life Holdings Integrated Report 20
96、23Conclusion:All aboard the Dai-ichi Life Group boatThere are two things I want to accomplish at all costs while I am CEO.The first is to achieve ROE above the cost of capital,and therefore improve our corporate value(market valuation).By achieving this goal,I hope to elevate the Group to a next sta
97、ge where it can make strategic more aggressively to accelerate growth.The second is to take advantage of being a listed holding company,and make the Groups employees realize the benefits of being a listed company.As I said at the beginning,my aspiration is to become one of the top global insurance g
98、roups by 2030.This will not be easy to achieve.Nevertheless,if all the Groups executives and employees,numbering more than 60,000,share the same vision and mindset,it will not be impossible.As social issues become increasingly complex and diverse,my mission is to work together as a Group to enhance
99、corporate value by addressing our diverse stakeholders,and lead the initiatives as head of the Group.I look forward to your support as we strive to meet your expectations.Finance and Capital(CFO)Taisuke NishimuraIT Governance/DX(CIO/CDO)Stephen BarnhamSustainability(CSuO)Hidehiko SoganoRisk Manageme
100、nt(CRO*)*Chief Risk OfficerHideyuki OhashiCorporate Communications(CCmO*)*Chief Communication OfficerKyoko WadaCompliance and Legal Affairs(CCpO*)*Chief Compliance OfficerWebster CoatesManagement Team with DiversityGroup Management OrganizationTop Managements of Overseas Group CompaniesThe Dai-ichi
101、Life Group launched a new management team,including CEO,on April 1,2023.As we expand the share of Group profit coming from overseas businesses,we are strengthening our overseas management as well as considerably expanding corporate functions that support our global growth by enhancing a CXO organiza
102、tion,including outside professional recruitment.President,Representative Director,CEONew positionmessage P.81message P.59message P.35New position Outside recruitmentCorporate functionsBusiness promotion functionsTetsuya KikutaProtection Business and CX Planning UnitRetirement,Savings and Asset Manag
103、ement Business UnitTakashi IidaInternational Life Insurance Business UnitHitoshi YamaguchiPLCRichard J.BielenTALBrett ClarkDLVNDang Hong HaiDLKHTola PonluSUDAbhayTewariOLINusara Banyat-piyaphodPDLFadjar GunawanPNZNaomi BallantyneDLMMZarchi TinProvide sustainable well-being Delivering value that help
104、s resolve global environmental,regional,and social issuesClimate change is becoming more and more serious,to the extent that the sustainability of society itself is being concerned.In this context,our urgent mission is to pass on a livable planet where future generations can live with peace of mind,
105、thus sustainability has become a common value shared by all stakeholders.Group has positioned climate change as one of its most important priorities and is working to address the issue from the perspective of both institutional investors and operating companies.In particular,Dai-ichi Life Insurance
106、plays an important role as an institutional investor that manages around 34 trillion in assets entrusted by policyholders throughout Japan,by form of a wide range of long-term assets.We will foster the transition to a net-zero society by working with our investee companies to support their decarboni
107、zation efforts through active engagement,transition financing,and other means.As our mission is“By your side,for life”,we believe that sustainability is deeply linked to our companys DNA.We will work to deliver value that helps resolve global environmental,regional,and social issues,as well as striv
108、e to realize a sustainable society and ensure the well-being of the next generation.We will also steadily promote DE&I and human rights due diligence efforts to demonstrate our respect for human rights.New position Outside recruitmentNew position Outside recruitmentNew position Outside recruitmentKe
109、n Yamaguchi1516IntroductionMessageValue CreationStoryStrategies&PerformanceSustainability&Management BaseGovernanceDataDai-ichi Life Holdings Integrated Report 2023Domestic Insurance BusinessOverseas Insurance BusinessOther BusinessAsset Management BusinessFoundation of Value CreationMaintaining and
110、Promoting Health of All P.49Contribution to connections that color our lives P.51Creating the of mind and is tailored Protection that delivers peace to diverse needs P.45 Asset Formation/Succession in the era of 100-year lifespans and for the next era P.47Expected Future Society and Market TrendsDai
111、-ichi Life Group VisionProtect and improve the well-being of allValue Creation ProcessUsing Dai-ichi Life Groups strengths,including diverse talent,intellectual capital,and a solid customer base and financial foundation,we will contribute to the well-being of all and build a sustainable society for
112、the future through our business activities and solving social issues.Well-being Created by the Dai-ichi Life Group(Outcomes)Customers Customers in Japan:13.62 million Group pension funds under management:Approx.6.6 trillion(Dai-ichi Life)Assets under management:Approx.9.5 trillion(Dai-ichi Frontier
113、Life)Payment of claims and benefits:Approx.6.4 trillion(entire Group)Business Partners Number of agencies(Japan)4,129 New M&As,alliances Acquisition of ipet Holdings Inc.Acquisition of Partners Life,New Zealands second-largest life insurance provider Investment in YuLife,a U.K.tech-driven group insu
114、rance and well-being companyEmployees Engagement survey overall score:64 (63 in previous year)Ratio of female organizational heads:18.5%(ratio of female executives:29.3%)Ratio/days of childcare leave taken by male:100%/21.5 daysFinancial Base*3 Promoted capital circulation management(Group adjusted
115、ROE:5.0%,Group ROEV:3.9%)Transformed the risk profile(Reduction of market-related risks:-530 billion*4)Achieved financial soundness and profit growth(Economic solvency rate:226%,Group adjusted profit:184.4 billion)Obtained an appropriate market evaluation(relative TSR:4th place)*3 Figures in parenth
116、eses represent key performance indicators(KPIs)for the Group and actual results for FY2022*4 For the period after the start of the current medium-term management plan(April 1,2021March 31,2023)Business foundation that drives the growth of theDai-ichi Life Group P.19Talent(Human Capital)Diverse talen
117、t worldwide:Approx.61,000 people in 10 countries Candidates for the next generation of global leaders and female managersIntellectual Capital Advanced expertise in life planning based on the social security system A wealth of medical care and health-related big data Advanced M&A insight and experien
118、ceSocial Capital Solid customer bases,both in Japan and overseas Firm alliances with diverse business partners and local communities A global network for creating innovation*1 Figures as of the end of March 2023 unless otherwise stated*2 As of the end of July 2023Financial Capital*1 Strong financial
119、 foundation and corporate value(Total assets:Approx.61.5 trillion,Group EEV:7.3 trillion)Robust capital and financial soundness(Economic solvency ratio:226%,Credit rating*2 of Dai-ichi Life Holdings:A+(JCR)Dai-ichi Life:AA(JCR,R&I),AA-(Fitch),A+(S&P,A.M.Best)Investment into the creation of new value
120、(Cumulative strategic investment:Approx.1.5 trillion)ERM,Financial&Capital Strategy P.35Sustainability and Business Foundation P.59Corporate Governance P.89Global Environment,Local Communities,and Society CO2 emissions from business activity(Scope 1 and 2):-83%Greenhouse gas emissions in the investm
121、ent portfolio(Scope 3):-16%Climate change solutions investment:Approx.710 billion Collaborative agreements with all 47 prefectures and more than 330 municipalities in JapanMaterial issues concerning the global environment and local communities and societyP.30Material issues concerning four experient
122、ial valuesP.291718Dai-ichi Life Holdings Integrated Report 2023IntroductionMessageValue CreationStoryStrategies&PerformanceSustainability&Management BaseGovernanceDataIndicators and initiativesImportance to medium-to long-term corporate value creationA wealth of talent and diversityHigh levels of ex
123、pertiseOur track record of unique expertise and intellectual creationAbility to create synergiesCustomer baseAlliances with diverse business partnersValue co-creation alongside local communitiesHuman CapitalIntellectual CapitalSocial CapitalFinancial Capital*2With Dai-ichi Life Insurance,which has b
124、een in business for more than 120 years in Japan,and by developing business in countries across the globe,we have acquired and capital,which is the source of competitiveness.Our aim is to maximize corporate value and achieve sustainable growth by combining our social capital,which is the foundation
125、of our business,and our human and intellectual capital,consisting of originality and talent,with our robust financial capital.The most important management resource to promote transformation is employee talent.The Group has approximately 61,000 diverse and talented employees in 10 countries across t
126、he world,and they are working to enhance corporate value.In Japan,we have around 35,000 sales representatives that tailor our services to the diversifying lifestyles of customers through our“Life Plan”simulation,which was renewed in July 2022.Global employee talent is indispensable to the Group,as w
127、e expand globally.In achieving a“World of Opportunities,”thanks to the initiation of a number of human resource development programs,strategic placement of employee talent,and mid-career recruitment,we now have 286 candidates to be next-generation global management leaders.We also believe that impro
128、ving the quality of our decision-making from the perspective of diversity is key,and as such,the Group promotes the empowerment of women.We are working to increase the percentage of female executives and organizational heads through various initiatives.These include rank-specific training and“cross
129、1 for 1”meetings with executives and general managers to help foster our female leaders.Along with the social security system,our services,knowledge,and expertise related to different life events,including marriage,housing,inheritance,and near end-of-life support form the foundation of our CX design
130、 strategy,which aims to deliver four experiential values:(1)Protection,(2)Asset Formation/Succession,(3)Health and Medical Care,and(4)Enhancing Connections,which add value beyond insurance services.In addition,the Group collates and leverages big data,including medical data,based on extensive relati
131、onships with our 13.62 million customers in Japan.In addition,we roll out a number of digital content services that leverage cutting-edge technology,including Healstepa service that supports medical expense optimizationand our health promotion app QOLism.We comprehensively use these strengths and th
132、e expertise in our insurance product development of each Group company,as well as use the expertise from our domestic businesses to further develop overseas Group businesses.Starting with Dai-ichi Life,which has a 120-year history,we have developed a group that operates insurance businesses in 10 co
133、untries,including Japan.The Group includes companies engaged in asset management,healthcare services,and pet insurance.Through this network,we will seamlessly create value to improve the well-being of all and create synergies that further enhance those values.Through insurance sales by sales represe
134、ntatives,and our partner agencies,as well as follow-up activities for customers,we are building a solid customer base in Japan.Overseas,we are steadily growing our customer base by executing growth strategies tailored to the needs and level of penetration of life insurance in each country.Leveraging
135、 these foundations,we will also provide products and services other than life insurance that contribute to well-being,at the right time and through the best channels.A network of diverse business partners is essential to allow us to grow and spread our wings in and outside the insurance field and de
136、liver new value.The Group provides insurance products not only in Japan but also in countries throughout the world through banks and independent agencies.We are also building a cooperative structure with our partners to allow customers access to services such as healthcare and nursing care through t
137、he Group.In addition,we have established dedicated labs to spur innovation in Silicon Valley and London,and an Asia research base in Singapore.Our Group aims to protect and improve the well-being of all,and all Group companies work with people in local communities to address local and social challen
138、ges.In Japan,we have agreements with partners in all 47 prefectures and are collaborating in the areas of health support,sports promotion,and the empowerment of women.Overseas,we have partnered with the University of Alabama at Birmingham campus in the United States,where Protectives HQ is located,a
139、nd are working together on research into extended healthy life expectancy.In other countries,Group initiatives are in motion to support the improvement of environments and medical services.Through capital management policy based on a framework of Enterprise Risk Management(ERM),we are working to mai
140、ntain financial soundness,sustainably increase our corporate value,and further strengthen shareholder returns.By investing capital into businesses with high capital efficiency and promising growth potential,we promote“capital circulation management”that will improve the Groups capital efficiency and
141、 cash generation capability,as well as shareholder returns.Number of individuals CFP and AFP qualified:CFP:412,AFP:2,236 MDRT members:162 domestic,272 overseas Number of qualified actuaries*1:116(Japan)Collaborative agreements and activities that contribute to local communities in all 47 prefectures
142、 and numerous municipalities in Japan(Overseas)Joint research with local universities,and work to improve local environments and medical services and support education Agencies in Japan:4,129 Enhance customer value through mutual provision of financial products Cooperate with partners with strengths
143、 in non-insurance fields,such as healthcare Create innovation via a global network Strong financial foundation and corporate value:Total assets:Approx.61.5 trillion,Group EEV:7.3 trillion Robust capital and financial soundness:Economic solvency ratio:226%,Credit rating*3 of Dai-ichi Life Holdings:A+
144、(JCR)Dai-ichi Life:AA(JCR,R&I),AA-(Fitch),A+(S&P,A.M.Best)Capital investment for the creation of new value:Cumulative total strategic investment,approx.1.5 trillion Customers in Japan:Approx.13.62 million Corporate clients in Japan:Approx.160,000 Number of policies-in-force in the U.S.:Approx.14.2 m
145、illion Customers in Australia:Approx.5 million Number of policies-in-force in Vietnam:Approx.1.36 millionAbility to create synergies by utilizing domestic and overseas Group networks 125 subsidiaries 30 affiliated companies*1 Total of Dai-ichi Life Holdings and Dai-ichi Life (including career rotato
146、rs)*2 Figures as of the end of March 2023 unless otherwise stated *3 As of the end of July 2023Capital of Dai-ichi Life GroupGroup employees Group employees at all business locations:Approx.61,000 Out of which,overseas Group employees:Approx.9,600(16%)Abundant human resources that deliver well-being
147、 to customers Dedicated sales representatives(Japan):Approx.35,000Diverse employee talent that supports global business operations Number of candidates for next-generation global management leaders:286 Ratio of female managers:29.3%Consulting skills and capability to develop insurance products that
148、capture customer needs Agile and advanced product development capabilities of Group companies (Japan and overseas)Advanced expertise in life planning based on the social security system(Japan)M&A insight and experience in the insurance industry and the U.S.market Businesses acquired by Protective:59
149、Healthcare big data More than 1.2 billion records(anonymized)Innovation and well-being research through the collaboration of industry and academia Industry-academia collaboration and joint research with six universities and institutions1920Dai-ichi Life Holdings Integrated Report 2023IntroductionMes
150、sageValue CreationStoryStrategies&PerformanceSustainability&Management BaseGovernanceDataSociety and EnvironmentEmployees Set targets for the ratio of female department heads and the ratio of male employees taking childcare leave and are promoting initiatives to raise them Implement initiatives to e
151、xpand work options to promote the employment of people with disabilities,and support the work styles of employees with childcare or nursing care needs,through development of systems enabling each of those employees to balance with their work as well as improving workplace Expanded training programs
152、to hone employees expertise,promoting career rotation and providing a personnel system allowing employees to choose autonomous careers and take side jobs Implemented a PDCA cycle to improve job satisfaction through engagement surveys and town hall meetings Promote diversity and inclusion to create a
153、n environment that empower diverse talents Create an environment where employees can shape their desired careers,work vigorously,and improve their skills Develop diverse and flexible work styles and improve employees engagementInitiatives to meet expectationsOur responsibilities and stakeholders exp
154、ectationsShareholders Held financial analyst conference from top management for institutional investors and analysts(twice)and online briefings for individual investors(five times)*Conducted conference calls for financial results(four times)and held around 300 meetings with shareholders and investor
155、s in Japan and overseas*Held dialogues with shareholders at general shareholders meeting and encouraged the exercise of voting rights Disclose information appropriately through websites and disclosure materials Reflect opinions and requests obtained through investor relations activities in Group man
156、agement by sharing them with the Executive Management Board and the Board of Directors *Fiscal 2022 results Fulfill our responsibility to explain the Groups business strategies and financial performance Further advance the Groups management through two-way dialogue with shareholders and other invest
157、ors Ensure transparent and voluntary information dissemination(quantitative financial information,governance,and non-financial information,such as medium-to long-term management strategies)Initiatives to meet expectationsOur responsibilities and stakeholders expectationsInitiatives to meet expectati
158、onsOur responsibilities and stakeholders expectations Pay claims and benefits promptly and appropriately Provide products and services that help improve peoples well-being,such as asset formation and health promotion offerings,in addition to insurance protection Develop products and expand service a
159、reas to meet diversifying customer needs Provide customer-oriented consulting Respond to diverse lifestyles by developing an infrastructure that enables procedures to be performed at an appropriate time and manner each customer desires Establish an operation and system to make a prompt and appropria
160、te payment of insurance claims and benefits Plan and implement measures to analyze and improve customer satisfaction through measurement of NPS related to our provision of products and servicesCustomersInitiatives to meet expectationsOur responsibilities and stakeholders expectations Collaborate wit
161、h business partners to co-create social and financial value Build alliances with major Japanese financial groups in asset management and product development/offering Collaborate with start-ups,online banks,and others to provide asset formation platforms Collaborate with partners to develop and offer
162、“Digi-ho”brand insurance productsBusiness PartnersInitiatives to meet expectationsOur responsibilities and stakeholders expectations Collaborate and cooperated with local governments across Japan to support the elderly,promote empowerment of women,revitalize local communities,and prevent crime and d
163、isasters in those communities Hold original programs at branch offices and sales offices to improve the well-being of local residents,such as health promotion,childcare,and sports promotionImprove the well-being of local residents and build local communities to resolve local issuesSocietySocietyEnvi
164、ronment Promote efforts throughout the Group to achieve net-zero CO2 emissions from business activities(Dai-ichi Life achieved 100%renewable energy conversion in fiscal 2022)Promote responsible investment initiatives in Dai-ichi Lifes investment portfolio by enhancement of ESG integration,expanding
165、ESG-themed investments and loans,and strengthening engagement with investees Disclose and implement a credible net-zero transition plan EnvironmentPromote responsible investment,engage and collaborate with relevant stakeholders,and reduce emissions from business activities to help accelerate the tra
166、nsition to a decarbonized society Address changes in customer needs and behavior Incorporate medical and digital technology Achieve true customer centricityRe-connect with customers Improve employee engagement and well-being Promote active participation of diverse talentRe-connect with employees Ach
167、ieve high capital efficiency Improve shareholder payoutRe-connect with shareholders Secure sustainability Adopt eco-friendly measures and prevent climate changeRe-connect with society and the environment Expand insurance-related services Seek collaboration to help resolve social issuesRe-connect wit
168、h business partnersStakeholder Expectations and InitiativesUnder our medium-term management plan,Re-connect 2023,we aim to meet the expectations of our all stakeholders by“re-connecting in a better way”to resolve new issues in the future.2122Dai-ichi Life Holdings Integrated Report 2023IntroductionM
169、essageValue CreationStoryStrategies&PerformanceSustainability&Management BaseGovernanceDataProviding value to societyImproving customers well-beingCustomerValue Co-Creation StorySocial Issues Facing the Dai-ichi Life GroupStabilization of livelihoodsExtension of asset life expectancyExtension of hea
170、lthy life expectancy and optimization of medical expensesIn Japan,concerns about the future of the social security system are growing due to the declining population caused by a low birthrate and the arrival of a hyper-aging society.As a consequence,the“protection”required by customers is changing,a
171、s they increasingly need not only conventional death benefits but also pensions,medical care,and long-term care coverage to meet their needs as they live longer.Moreover,with an aging population,the need to secure funds for retirement through self-help and to extend asset life expectancy is expected
172、 to increase in the future.The Group aims to improve the well-being of those customers through products and services that can address these social issues and diversified needs of customers.We aim to improve the well-being of our customers by seamlessly providing products and services in four busines
173、s domains:“Protection”to support customers livelihood in cases of emergency,“Asset Formation/Succession”to secure funds for retirement and to pass on to the next generation,and“Health and Medical Care”and“Enhancing Connections”to provide information that will help customers develop healthy lifestyle
174、 habits naturally from a pre-disease stage and to create interpersonal connections in the community and region.We aim to provide products and services that meet the diverse values and needs of our customers,to address the challenges they face in their daily life,through both in person and online any
175、time and anywhere.The Dai-ichi Life Group will realize the Group Vision,“Protect and improve the well-being of all”and help customers achieve well-being based on our mission:“By your side,for life”In January 2023,ipet Holdings,that offers pet insurance,was newly joined the Group.Pet owners view thei
176、r pets as members of the family that have a significant impact on their well-being.The Group will work to improve the well-being of both pets and customers by providing value in the area of“Enhancing Connections,”including the well-being of pets by providing insurance protections through consultatio
177、n with customers,and resulting to providing opportunities for medical treatment to them.ipet Holdings,Inc.,joined the GroupImproving the well-being of Every Customer through the Collective Efforts of the GroupEfforts to improve customer experiential value(CX)Case1In July 2022,Dai-ichi Life renewed i
178、ts“Total Life Plan,”a life plan simulation linked to the social security system,with the aim of providing consulting services more closely tailored to each customer than ever before.As a life insurance company,Dai-ichi Life is committed to playing a complementary role to the social security system a
179、nd improving the well-being of every customer by co-creating their life design and providing peace of mind through high-quality products and services on the basis of our mission:“By your side,for life”Business activitiesExamples of initiativesProviding products and servicesincluding non-insurance on
180、esto realize well-beingCase22324Dai-ichi Life Holdings Integrated Report 2023IntroductionMessageValue CreationStoryStrategies&PerformanceSustainability&Management BaseGovernanceDataProviding value to societyContributing to accelerating the transition to a decarbonized societyEnvironmentValue Co-Crea
181、tion StorySocial Issues Facing the Dai-ichi Life GroupPreventing environmental harm as a result of global warmingWe believe that we have a responsibility to future generations to ensure a sustainable society and preserve the global environment.As such,we are aiming to achieving“sustainable well-bein
182、g”for all stakeholders,society,and the global environment.To this end,we are accelerating efforts to contribute to resolving material issues on the global environment,local communities,and society,including climate change.The life insurance business plays an important role in protecting future gener
183、ations as a bridge between the present and the future.We will contribute to realizing a sustainable and resilient environment and society by investing the insurance premiums received from our customers as a responsible institutional investor,based on a comprehensive understanding of our social role
184、and our mission:“By your side,for life,”that links present and future generations.Dai-ichi Life,the Groups core domestic subsidiary,manages approximately 34 trillion in funds entrusted by policyholders throughout Japan invested in a wide range of assets over the long term.Dai-ichi Life is working on
185、 responsible investment that contributes to resolving material issues on the global environment,local communities,and society while securing stable investment returns over the medium to long term.Of the many environmental and social issues facing society,preventing climate change is a top priority f
186、or responsible investment.Dai-ichi Life will contribute to acceleration of the transition to a decarbonized society by investing in solutions that accelerate the decarbonization of society,actively investing to support the transition of high-emission industries,and effectively collaborating and enga
187、ging with its investee companies,financial institutions across the world,and other stakeholders.Dai-ichi Life has selected around 50 of the top GHG-emitting investees as priority engagement targets.Our ESG analysts analyze and make recommendations on the companies climate change initiatives,advise t
188、hem to set GHG emission reduction targets consistent with the 1.5C target,and encourage them develop and implement strategies to achieve their targets.Collaboration with other financial institutions and other stakeholders is essential to decarbonize society.To reinforce and enhance the effectiveness
189、 of Dai-ichi Lifes stand-alone engagement activities with its investees,Dai-ichi Life participates in collaborative engagement through multiple domestic and international initiatives.Dai-ichi Life was also among the first to take part in global initiatives such as GFANZ*,the worlds largest coalition
190、 of financial institutions committed to net-zero emissions Dai-ichi Life engages in and contributes to global rulemaking aimed at accelerating the transition to net-zero emissions.*Glasgow Finance Alliance for Net Zero(see pp.7172 for details)Facing environmental issues as a life insurance company a
191、nd an institutional investorDai-ichi Life is actively pursuing investment and loan opportunities that create positive environmental and social impacts.As to the issues for climate change,Dai-ichi Life is executing the investments and loans that contribute to resolve those issues,through the investme
192、nts and loans that foster innovation,renewable energy power generation projects,green bonds,etc.Given the importance of promoting long-term transition strategies,particularly for GHG-intensive industries,we formulated and disclosed our“Policy on Transition Finance”in fiscal 2022 to make investments
193、and loans that contribute to appropriate transitions that benefit the environment.The cumulative total of investments and loans that contribute to resolving climate change issues reached approximately 710 billion as of the end of fiscal 2022 and will increase to 1 trillion by the end of fiscal 2024.
194、The annual measurable GHG reduction contributions from these investments and loans are approximately 1.23 million tons-CO2e(equivalent to about 27%of the companys financed emissions in fiscal 2022),and this amount will increase to 1.5 million tons-CO2e in fiscal 2024.Business activitiesExamples of i
195、nitiativesAccelerating decarbonization efforts through stakeholder engagementCase2Creating positive impacts through investments and loansCase1Accelerating the Transition to a Decarbonized Society through Investment Activities and Collaboration with Stakeholders2526Dai-ichi Life Holdings Integrated R
196、eport 2023IntroductionMessageValue CreationStoryStrategies&PerformanceSustainability&Management BaseGovernanceDataProviding value to societyContributing to the well-being of local communities and societySocietyValue Co-Creation StorySocial Issues Facing the Dai-ichi Life GroupEnsuring the sustainabi
197、lityof societyImproving emotional well-beingAgainst the backdrop of a declining population,an aging society with low birth rate and diversifying lifestyles,Japanese society today is seeking to offer more fulfillment and happiness to everyone.But at the same time,in part due to the COVID-19 pandemic,
198、it has become increasingly difficult for people to connect with each other.In local communities in particular,many social issues have been piling up,including the long-standing problem of labor shortages.The Group aims to create social and economic value through the resolution of social issues.For t
199、he Group,which aspires to secure peoples well-being,ensuring sustainability is a foundation for business operations.We believe that we have a responsibility to connect and co-create with all stakeholders to make our business sustainable and contribute to resolving issues in local communities.The Gro
200、up has been developing initiatives in each region for“Enhancing Connections”with local communities and customers.The Group will continue to contribute to the well-being of every customer by deepening connections with people in various regions and creating diverse connections with society through a b
201、road range of initiatives.When promoting business in each country and region,it is essential for each overseas Group company to help revitalize local communities through social contributions and other activities aimed at resolving local issues.At TAL(Australia),the TAL Community Foundation has been
202、engaged in various social contribution activities,such as support for young people and indigenous people,in cooperation with local partners and communities through donations and volunteer activities.Through the foundation,we will continue to support meaningful community activities in Australia that
203、improve peoples well-being.Social contribution through the TAL Community FoundationCommunity revitalization through social contribution and resolution of social issuesIn March 2023,the SETAGAYA Qs-GARDEN opened as a town that contributes to the well-being of local residents through health promotion,
204、support for the elderly,community revitalization,childcare and education,sports promotion,security and disaster prevention,and more.Through this town,we aim to restore the connection among people and communities that have been weakened by the COVID-19 pandemic,bring back the well-being of local peop
205、le,and provide value by revitalizing communities.We will continue to help form a community with trust and happiness where people are constantly connected through music,sports,and other events to improve their well-being.Business activitiesExamples of initiativesCase2Harmonizing with Local Communitie
206、s and Regions to Achieve a Sustainable SocietyOpening of“SETAGAYA Qs-GARDEN,”a town for well-beingCase12728Dai-ichi Life Holdings Integrated Report 2023IntroductionMessageValue CreationStoryStrategies&PerformanceSustainability&Management BaseGovernanceDataSocial issues our Group can addressReasons f
207、or selecting material issuesMaterial issues related to the four experiential valuesMaterial issues(Materiality)Stabilizing livelihoods,including for the next generationWe grouped the 17 goals and 169 targets of the SDGs according to their purpose and came up with 50 social issues on which to focus.A
208、mong the issues prioritized and rated as important,we selected 14 issues based on their relevance to our Group philosophy and vision after discussion with outside experts.Identify and organize social issuesSTEP1We assigned priority and importance ranking to the 50 social issues based on stakeholder
209、expectations and level of importance for an insurance company.Evaluate priority/importance levelSTEP2Select material issuesSTEP3Japans declining population and aging society have led to growing concerns about the nations social security system.Against this background,we believe that the need to ensu
210、re protection based on self-help will increase going forward.In these uncertain times,we aim to help stabilize the foundations of all peoples lives by co-creating life designs based on each customers dreams and aspirations,and by providing peace of mind through financial security.Low insurance cover
211、age among young people(60%)Coverage for the working-age population is insufficient by more than 10 million 1.7 billion people(mostly in emerging countries)have difficulty accessing financing(insurance penetration is also low)Creating livelihood stability through insurance Promoting a sense of securi
212、ty in later lifeExtending asset lifeWith the advent of the 100-year life society,people are becoming more concerned about their retirement funds.Accordingly,self-help efforts to build assets for retirement and extend asset life are regarded as social challenges.By combining and demonstrating our str
213、engths in retirement,savings,and asset management,we will meticulously address the needs of customers from the accumulation stage of asset formation through retirement and beyond,to asset succession to the next generation.Through all stages,we will provide optimal solutions tailored to each individu
214、als needs.Medical costs for the government and health insurance associations are increasing every year due to advances in medical technology and Japans aging society.Although life expectancy is increasing,healthy life expectancy is not keeping pace with this growth,resulting in a widening gap that r
215、epresents a serious social issue for the nation.To address the social issues of increasing medical costs and the widening gap between life expectancy and healthy life expectancy,we aim to help people maintain good health from the pre-disease stage,in addition to financially supporting medical expens
216、es after the onset of disease.Amid a declining birthrate,an aging population,progress toward a digital society,and diversifying lifestyles,we are entering an era in which people seek spiritual enrichment in addition to physical enrichment.The spread of COVID-19 has reaffirmed the importance of“conne
217、ctions”between people.We will take diverse initiatives that foster the enrichment of peoples hearts and minds as a member of their community and society,together with local governments and business partners.Amid diversification of values and behaviors,including those of the digital native generation
218、,“asymmetry of information”has disappeared while the commoditization of products is progressing in various fields.The same applies to the life insurance sector,where in addition to the value that products and services provide,emotional values such as a customers psychological satisfaction will be em
219、phasized going forward.By carefully grasping customers diversifying values and needs,we are committed to delivering experiences and impressions that exceed their expectations at every point of contact.About 70%of respondents were concerned about their retirement funds Urgent need to improve financia
220、l literacy Widening gap between healthy life expectancy and increased life expectancy (9 years for men and 12 years for women)One in four of the population has no intention of improving their exercise and eating habits Maintain health to help reduce economic burdenExtending healthy life expectancy a
221、nd optimizing medical expenses Promoting the health of people everywhere About 30%of respondents do not have many friends in the community More than 30%of respondents are concerned about the future of the community (decrease in caregivers,transportation,and employment)Building a safe and secure comm
222、unity Providing optimal experiential values that meet customer needsImproving emotional well-beingImproving customer loyaltyJapanOverseasOverseas One of the greatest factors in determining longevity is“connections”*1“Net Promoter Score”is a registered trademark of Bain&Company,Fred Reichheld,and Sat
223、Metrix Systems.*2 Compared with fiscal 2019 *3 Listed equities,corporate bonds,and real estate(including loans in 2030)*4 Compared with 2020 *5 Percentage of those other than“males,new graduates,and Japanese nationals”in internal management positions(Japan)Social issues we can addressReasons for sel
224、ecting the material issuesMaterial issues(Materiality)Improving human capital diversity as a Japanese company considering global standards Responding to climate change Improving efficiency of energy use Promoting clean energyDisseminating and establishing new energy systems Promoting the empowerment
225、 of women Improving corporate governance and risk management Promoting initiatives toward human rights for all Creating job satisfaction Dependence on fossil fuels for energy is higher than 80%Future temperature increase due to global warming is estimated to be as high as 4.8CWe recognize that the a
226、ction for environmental issues,such as the need to mitigate climate change and improve efficient energy use,must be addressed by the international community as a whole.This is an important business management issue that could have a significant impact on the lives and health of our customers,as well
227、 as corporate activities and the sustainability of society.As a global insurance group,we will resolve this issue from our perspective as both an insurance provider and an institutional investor.Respect for human rights is becoming increasingly important for companies as various risks arising from n
228、eglect of those issues materialize.Such respect is a crucial prerequisite for achieving our Group goal,which is to ensure the well-being of all,including future generations,and realize a sustainable society,which we recognize to be our corporate social responsibility.By promoting human rights due di
229、ligence in accordance with the UN Guiding Principles on Business and Human Rights,we will respect the human rights of all stakeholders,including those in our supply chain,and create job satisfaction for our employees.To address the ever-increasing speed of changes in business conditions,our most imp
230、ortant management resource for corporate transformation is our human capital.We believe that utilizing the diverse personalities of employees and maximizing their abilities will lead to our sustainable growth.We are committed to building an organization where every one of our 60,000 Group employees
231、can play an active role in demonstrating their individuality,while making diversity a corporate strength.The need to promote human rights due diligence in accordance with the UN Guiding Principles on Business and Human Rights About half of respondents do not feel“job satisfaction”at their current wo
232、rkplace The ratio of non-full-time employees is about 40%In the Gender Gap Index,Japan ranked 125th out of 146 countries surveyed The percentage of female executives in listed companies is about 9.1%Contributing to the development of society through responsible investment and lending Promoting regio
233、nal development Building a safe and secure communityAs members of local communities,companies are increasingly expected to play a role in addressing the various issues that communities are facing.To date,we have helped meet social challenges through investment that fosters the development of new ind
234、ustries and the transformation of social structure.We have also worked to resolve issues through our life insurance business,with a business presence throughout Japan,while forming various partnerships.We are committed to creating affluent and secure lifestyles and communities,and moving toward sust
235、ainable growth together with local and international communities.Helping create innovation through investment and lendingEnsuring the sustainability of local communities Shortage of labor force and stagnation of industry in rural areas due to depopulation Problems caused by the concentration of popu
236、lation in urban areas (e.g.,diluted communities,children on daycare waiting lists)Aging social infrastructure Urgent need to foster industries and technologies that support a sustainable societyMaterial Issues of the Dai-ichi Life GroupEvolving into an insurance group that remains trusted and chosen
237、 by customers,through contributions to their well-being NPS*1(Dai-ichi Life):Top level in Japan by fiscal 2026 Number of customers(total of domestic business):15 million by around fiscal 2026ObjectiveBased on the external environment and global initiatives,such as the SDGs,we have selected 14 key is
238、sues to focus on to address social challenges and ensure the sustainability of communities and society through our business.For each of these issues,we identify medium-and long-term risks and opportunities for our Groups business and reflect them in the business strategies of our medium-term managem
239、ent plan,Re-connect 2023.ObjectiveAchieve net-zero emissions to ensure the sustainability of the global environment Group CO2 emission reduction(Scope 1 and 2)*2:50%by fiscal 2025;net zero by fiscal 2040 Investee companies*3 greenhouse gas emission reduction*4:25%by 2025;50%by 2030;net zero by 2050M
240、aximize the potential of each individual to realize diverse employee empowerment Ratio of female organization heads:30%by April 2024;increase in the ratio of women at director and executive officer levels Improve the diversity ratio*5 Engagement survey overall score:67(April 2024)Expand investments/
241、loans that lead to positive impacts on society Expand ESG investments/loans:ESG-themed investments/loans totaling at least 2 trillion by fiscal 2024JapanJapanJapan and overseasJapanJapanJapanJapanJapanJapan and overseasJapan and overseasMaterial issues related to ensuring regional and social sustain
242、abilityRespecting the human rights of all business-related stakeholders and enhancing job satisfaction across generations and occupationsPreventing irreversible environmental change due to global warming2930Dai-ichi Life Holdings Integrated Report 2023IntroductionMessageValue CreationStoryStrategies
243、&PerformanceSustainability&Management BaseGovernanceDataOpportunitiesRisks73.0%*12030Key factsEffects on customers and societyOpportunities and risks perceived by the Dai-ichi Life GroupPercentage of digital natives in the world populationBy 2030,so-called digital natives(millennials and Generation
244、Z)will account for around 73%of the worlds population and play a central role in consumer behavior.When digital natives become the core of society,communication without barriers between the real and virtual worlds will be commonplace,and people will favor businesses with more timely and convenient c
245、ustomer contact points regardless of industry.In addition,value perceptions of“social good”will prompt people to evaluate businesses more meticulously from the perspectives of social significance and business ethics.OpportunitiesRisks Provide highly convenient means of communication to improve custo
246、mer satisfaction Attract new customers via multiple contact points Decline in customer support and satisfaction due to inadequate response to new communication preferences Reduced market presence due to lack of diverse customer contact points,including in non-insurance areasP.35Based on our recognit
247、ion of opportunities and risks,we will incorporate into the Groups strategy the need to secure necessary management capital and know-how,build a financial base that enables appropriate growth investments,and fulfill our social responsibility.We will take bold and proactive measures to achieve these
248、objectives.Material issues related to the four experiential valuesP.29Our Group StrategiesP.41Financial strategy to ensure appropriate responses to growth and investment opportunitiesStrengthen the CX Design Strategy and digitalizationP.59P.73Material issues related to ensuring regional and social s
249、ustainability P.30*1 UN Forecast*2 Allianz Global Insurance Report 2023*3 WEF,Global Gender Gap Report 2023Human capital management strategies for both domestic and global business developmentImplement action plans to ensure sustainabilityExpected Future Social and Market TrendsWe believe that adopt
250、ing strategies that accurately capture opportunities and risks associated with material issues identified by the Group will help ensure the sustainability of our business.We consider the following items to be particularly important due to not only their high probability but also their impacts being
251、global in scale and long-lasting for the future.8.1%*2Average annual growth rate forecast for the Asian life insurance market(next 10 years)Over the decade to 2033,the Asian life insurance market is expected to maintain a high average annual growth rate of 8.1%due to economic growth in various count
252、ries,post-pandemic risk awareness,and a growing interest in sustainability.Note:the Asian life insurance market above excludes Japan and China.Seize future growth opportunities by making flexible and promising investments in the Asia-Pacific and other regions Strengthen Group synergies by expanding
253、and reinforcing business foundations in regions with high growth potential Missed growth opportunities due to inability to make appropriate investments for financial,organizational,or other reasons Potential need to downsize or withdraw from businesses in certain regions due to misjudgment of busine
254、ss risks specific to a local region/marketWe expect the insurance market to grow significantly in the next decade,especially in emerging Asian countries.As the economies of these countries grow,people will seek new forms of protection and savings due to rising incomes and changing lifestyles.In addi
255、tion,we expect technological innovation to drive the rapid expansion and evolution of businesses in the periphery of insurance,such as health and medical care and financial services,in some countries and regions.125*3thJapans ranking in the Global Gender Gap IndexNet 0Greenhouse gas emission targetS
256、ustainability initiatives,including those in line with the 2050 target of net-zero greenhouse gas emissions,are a universal commitment.In this context,the responsibilities of companies are increasing every year.Secure and bolster earnings by increasing investment and financing opportunities that hel
257、p resolve ESG and other issues Maintain a presence and strengthen our business foundation by taking initiatives to ensure sustainability Damage to assets due to a decline in value stemming from inadequate sustainability initiatives Increase in claims and benefit payments due to a failure to avoid gl
258、obal warming and the resulting increase in natural disastersResponding to social issues in relation to global sustainability,such as addressing climate change and respecting human rights and diversity,will become even more essential and widespread.We believe that economic rationality and ethical ori
259、entation in consumption and purchasing are not trade-offs but rather should be compatible.This value perception will become more mainstream in the future,and new businesses could emerge as a result.In addition,the responsibility of companies to ensure sustainability will increase,and how they fulfil
260、l their commitments will greatly affect their corporate value.Japan lags far behind the rest of the world in terms of gender equality.To address emerging values and create innovations,we need to not only eliminate gender disparities but also bolster efforts to develop and attract diverse human capit
261、al.As our business becomes progressively more global in nature,we need to attract more diverse and specialized talent.The same applies to our business in Japan.To continue meeting the needs of our diverse clientele,we aim to be an attractive company with diversity in hiring channels and work styles,
262、not to mention gender and nationality,as well as the ability to create new levels of employment and well-being.Acquire and accumulate various expertise,including in new areas,and demonstrate positive chemistry through human diversity Strengthen our business foundation by improving global management
263、capabilities Stagnation or setback in business expansion due to lack of necessary talent and skill sets Decline in competitiveness due to poor Group governance and global management capabilities Providing optimal experiential values that meet customer needs Stabilizing livelihoods through insurance
264、Promoting the empowerment of women Improving corporate governance and risk management Responding to climate change Promoting initiatives toward human rights for allUntil 203320232050OpportunitiesRisksOpportunitiesRisks3132Dai-ichi Life Holdings Integrated Report 2023IntroductionMessageValue Creation
265、StoryStrategies&PerformanceSustainability&Management BaseGovernanceDataStrategies&PerformanceIntroductionMessageValue CreationStoryStrategies&PerformanceSustainability&Management BaseGovernanceDataStrategies&PerformanceFY20212023 Medium-term Management Plan(MMP)Progress on KPIsCapital efficiencyFY20
266、22resultFY2022resultMedium-to long-term target level3.9%(unachieved level)Average around8%FY2023target5.0%(unachieved level)Approx.8%Group adjusted ROE(accounting)Group ROEV(economic value)Market risk reduction(vs.March-end 2021)Economic solvency ratio(ESR)Group adjustedprofitRelative TSRFY2022resul
267、tFY2022resultMedium-to long-term target level4th placeFY2023target184.4 billion(unachieved level)250 billion280billionFY2022resultFY2022resultMedium-to long-term target level226%170%200FY2023targetApprox.530 billion(95%of 3-year progress)560 billionRisk controlAccounting profitMarket valuationRelati
268、ve advantage over 10 domestic and overseas competitorsWhile efforts to create the 4 experiential values,including the expansion of the“Enhancing Connections”area through the acquisition of ipet Holdings,are making progress,the new business results of Dai-ichi Life are significantly below the pre-COV
269、ID-19 level,and we are working on a quick recovery.Market risk reduction under capital circulation management has progressed steadily,achieving 95%of the target set in the MMP.In addition,along with strategic investments,we have made large-scale share buybacks and increased dividends to enhance shar
270、eholder payouts.Through the investment in YuLife in the United Kingdom and the acquisition of Partners Life in New Zealand,we have made steady progress in building a balanced business portfolio,and the share of the Overseas Business in Group adjusted profit has increased to approximately 34%.We have
271、 been selected for inclusion in the S&Ps Dow Jones Sustainability Asia Pacific Index and have received high external acclaim for our Group-wide efforts to realize a sustainable society.Strengthened our capabilities in strategy execution through a transition to a holding company structure,which enabl
272、es the flexible allocation of management resources and rapid decision-making at each Group companyEstablished a domestic business framework with three life insurance companies(Dai-ichi Life,Dai-ichi Frontier Life,Neo First Life)Accelerated overseas business expansion and expanded profit contribution
273、,which also contributed to achieving the total payout ratio target.Providing financial resources for growth areas and innovation by achieving cash flow managementStrengthening ERM with a view to prolonged low-interest market conditions2001720182020Strengthened our presence in the Japanese
274、 market through enhancement of the product and service lineup(Dai-ichi Frontier Life became a market leader in the Japanese bancassurance market)Provided a significant foothold for expanding the profit contribution from overseas business with the acquisition of Protective in the United StatesDevelop
275、ing a new strategy for achieving sustainable growth;expanding business foundationsMaintaining the sufficient capital position assurance required of a global insurance group;enhancing shareholder returnsStrengthened the ability to reach a diverse customer base through the diversification of sales cha
276、nnels and product supply under a domestic business framework with three life insurance companies;started expansion to new markets such as healthcare and small-amount and short-term insurance productsAchieved medium-to long-term target levels of financial soundness mainly through market risk reductio
277、n initiatives,which are not an extension of the conventional approachesRadically transforming the domestic insurance business based on each customers perspective;responding to accelerated changes in societyOvercoming high cost of capital and low capital efficiency and the globalization of Group oper
278、ationsAchievementsAchievementsAchievementsIssuesIssuesIssues Review of past medium-term management plans FY20212023 Medium-term Management Plan(MMP)Under Re-connect 2023,our new MMP that started in fiscal 2021,we are reviewing how we should connect with customers and other stakeholders while working
279、 on initiatives in four key areasDomestic Business,Overseas Business,Financial/Capital Management Strategy,and Sustainability&Business Foundationbased not only on the achievements and issues recognized in past medium-term management plans but also on the recognition of the environment whereby COVID-
280、19 forced the breakup and transformation of some of our relationships with stakeholders,and peoples values and the nature of society changing at an accelerated pace.Progress of the FY20212023 MMPReview of fiscal 2022Although efforts to improve the business portfolio and market risk reduction made st
281、eady progress,financial indicators such as adjusted profit fell short of targets,in part due to increased payments related to COVID-19 and the impact of higher overseas interest rates.Although the external environment continues to be volatile,we will achieve the target level we were aiming for when
282、we formulated the MMP through steady business operations,including the recovery of domestic new business results,which have been a challenge.Direction for the new MMPTo grow into one of the top global insurance groups by 2030,we aim to raise the level of“Service Innovation,”“Customer Satisfaction,”“
283、Employee Satisfaction,”and“Corporate Value”to the top level in Japan by fiscal 2026,the final year of the new MMP.To achieve these goals by executing both business and financial strategies in an integrated manner,we are working to materialize the strategies of the new MMP.Management challenges Addre
284、ss changes in needs and behavior Incorporate medical and digital tech Achieve true customer centricity Expand insurance-related services from a customer perspective Seek collaboration to help resolve social issues Secure sustainability Be eco-friendly and combat climate change Improve employee engag
285、ement and well-being Promote active participation of diverse talent Achieve high capital efficiency Enhance shareholder payoutCustomersBusiness partnersSociety and the environmentEmployeesShareholdersDomesticBusinessOverseasBusinessSustainability&Management BaseFinance/CapitalManagementExpand existi
286、ng business while exploring opportunities beyond insuranceBuild a business portfolio that drives growth Drastically improve capital efficiency mainly by reducing market-related risks Strike a balance between disciplined capital allocation and strong shareholder payoutsCreate a universally bright fut
287、ure by fulfilling our part in enhancing sustainability Promote Group-wide sustainability improvement Promote the Groups human capital strategy and governance to support our business foundation Transform the domestic business model and boost CX by leveraging our four experiential values Structurally
288、reform the sales representative channel and raise efficiencyCX:Customer Experience Increase profits in existing markets and further drive business Leverage DX to increase CX and further enhance operational efficiencyDX:Digital TransformationImprove the financial standing and capital circulation mana
289、gementToward making greater advancesAchieving sustainable value creationToward growth through contribution to improving QOLImproved valuations+improved market capitalization due to profit growth Introducing stock-based remuneration,etc.,for employees to feel an increase in corporate value Using digi
290、tal support and AI to radically improve productivity Fostering a free and vigorous culture and creating synergistic effects among human capital to facilitate further innovationAchieve top-level NPS among domestic life insurancesIncreased engagementBecoming a Global Top-LevelInsurance GroupCustomersa
291、tisfactionCorporate valueEmployeesatisfactionSharinggrowthAchievingtransformationIncreasingproductivityImprovingserviceInnovativenessEmbodiment of DX Transforming into service business to improve sustainability and the expected growth rate Reallocating capital earned to raise the level and expand th
292、e scope of products and services Expanding digital access to radically improve convenience Accumulating customer data to deepen studies for new value creation Increasing business productivity to improve business performance and expected growth rateDomestic BusinessFinance/Capital ManagementOverseas
293、BusinessSustainability&Management Base3334Dai-ichi Life Holdings Integrated Report 2023Strategies&PerformanceIntroductionMessageValue CreationStoryStrategies&PerformanceSustainability&Management BaseGovernanceDataFinance and Capital StrategyThrough capital allocation to highly capital efficient and
294、growth businesses,we promote capital circulation management that enhances Group capital efficiency,raises our cash generation capability,and improves shareholder returns.Capital markets(e.g.,shareholders/creditors)Operating companiesCustomers/SocietyCustomersatisfaction(value)Free cash flowGroup(Hol
295、dings)Experiential valuesGrowthinvestment(e.g.,capital investments)Capital financing(equity/debt financing policy)Shareholder returns(as per shareholder return policy),debt interest,and principal payment,etc.CapitalallocationCash circulationImprovement of operating efficiencyBusiness Plan Execution/
296、Risk Reduction/Productivity Improvement/Soundness Assurance Increase in adjusted profit/Value of new business/Free cash flow(+free cash)Growth investments/Shareholder returns/Reinforcement of financial soundnessCapital circulation management focused on improvement of capital efficiencyBalanced capit
297、al allocation and substantial financial measures that contribute to sustainable growth(emphasis on cash flow and economic value)Investment return exceeding the cost of capitalExecutive Officer,Chief Financial OfficerTaisuke NishimuraI was appointed chief financial officer(CFO)in April 2023.As CFO,I
298、will do my utmost to enhance corporate value,especially shareholder value,while maintaining financial discipline.Here,I would like to explain our financial strategy,which I aim to implement.In our current medium-term management plan(MMP)“Re-connect 2023,”we set achieving high capital efficiency and
299、reducing the cost of capital as priorities,and we are focusing on the promotion of risk control,enhancement of cash generation capability,expansion of shareholder payouts,and disciplined execution of strategic investment,under the financial strategy slogan“capital circulation management.”From fiscal
300、 2021,in light of changes in the market environment,actual business conditions,and other factors,we revised our recognition of the cost of capital for the first time since our listing from 8%to 10%.We then set ourselves a medium-to long-term goal of realizing capital efficiency that stably surpasses
301、 capital costs and decided to focus on improving capital efficiency through a review of our business portfolio while at the same time lowering the cost of capital through risk reduction.During fiscal 2021 and 2022,we made faster progress than planned on reducing market risk,especially interest rate
302、risk.As a result,we succeeded in reducing the volatility of the economic solvency ratio(ESR),which is an indicator of financial soundness based on economic value,and were able to implement initiatives to reduce the cost of capital.I have also engaged in dialogue with market participants through publ
303、ic announcements and so forth and feel proud that we have received some recognition for these initiatives.In terms of business results,fiscal 2022 was a tough year in which we reported a decline in profit due to a variety of factors including insurance payments related to COVID-19 and rising oversea
304、s interest rates;however,we shored up the cash position of the holding company through the reduction of market risk at subsidiaries and encouragement of the use of reinsurance within the Group,and succeeded in realizing strategic investments that will lead to future growth,such as the acquisitions o
305、f New Zealand Partners Life and Japanese ipet Holdings as subsidiaries and,more recently,in achieving improvement in capital efficiency through share buybacks.New challenges and business opportunities have also emerged recently,such as a decline in the value of new business at Dai-ichi Life,growing
306、uncertainty in the economic environment,rapid advances in generative AI,and rising inflationary pressure in Japan.Continuous improvement in productivity and promotion of DX are essential to respond to such challenges and opportunities.I also believe we need to focus on implementation of market risk
307、reduction initiatives,which we have ramped up in anticipation of the economic valuebased solvency regime to be introduced in Japan in 2025,and on business portfolio transformation that will lead to sustainable improvement in capital efficiency.We are implementing a range of initiatives to transform
308、our business portfolio,including deepening core businesses(protection and asset formation),extending our business wings,and exploring the acquisition of new organizational capabilities in areas such as digital,and we are laying the foundations for realizing sustainable growth in the future.To this e
309、nd,through the proposal of financial strategies aligned with business strategies and the execution of capital allocations,we will implement initiatives aimed at realizing the kind of business portfolio we as a Group should aim for.Given the challenges outlined above,I as CFO am committed to implemen
310、ting capital circulation management through close cooperation with subsidiaries in Japan and overseas.I will also strive to improve internal control and corporate governance generally and do my utmost to realize sustainable business growth based on sound financial operations.At the same time,I will
311、endeavor to gain the trust of investors by actively engaging in dialogue with shareholders and investors and promoting transparency and accountability.By taking feedback and suggestions from shareholders and investors seriously,reflecting market opinions in Group management,and effectively implement
312、ing a PDCA cycle,I will strive to improve corporate value based on constructive two-way engagement.Please accept my sincere thanks for all your support and cooperation.Message from the CFOCapital circulation management Basic approach to capital management policiesOur Group bases its capital manageme
313、nt policies on the enterprise risk management(ERM)framework,aiming for the sustainable enhancement of corporate value and further improvement of shareholder returns while ensuring financial soundness.Under our current MMP“Re-connect 2023,”we strive to achieve sustainable growth through the implement
314、ation of“capital circulation management.”Capital circulation management is the approach to enhance corporate value through the favorable circulation of capital and cash obtained from business operation and released by risk reduction within the Group by reallocating capital to highly capital-efficien
315、t businesses and growth businesses while ensuring financial soundness.Regarding the economic solvency ratio(ESR),an indicator of financial soundness based on economic value,we have set a target range of 170%200%.If the ESR exceeds 200%,we will actively consider strategic investments and flexible and
316、 additional payouts,taking into consideration market conditions and other factors.3536Dai-ichi Life Holdings Integrated Report 2023Strategies&PerformanceIntroductionMessageValue CreationStoryStrategies&PerformanceSustainability&Management BaseGovernanceDataESR is an indicator used to ascertain the f
317、inancial soundness of insurance companies and,unlike the current solvency margin ratio,which is premised on accounting balance sheets,ESR is premised on economic valuebased balance sheets.Economic value includes unrealized gains and losses on assets and liabilities that are off-balance-sheet items f
318、or accounting purposes.Accordingly,ESR is an indicator that enables more consistent evaluation of assets and liabilities based on the same measure,that is,economic value,and encompasses fluctuations in the market value of liabilities as a result of interest rate changes,which cannot be understood fr
319、om accounting information.In initiatives to evaluate economic value,we began disclosing embedded value(EV)when we listed our shares on the Tokyo Stock Exchange in 2010,and we began disclosing ESR after setting a target range from 170%to 200%in our MMP covering fiscal 2015 to fiscal 2017.Since introd
320、ucing EV and ESR,we have worked to improve our measurement techniques in accordance with changes in the external environment including reflecting actual operating conditions as appropriate and capital solvency requirements.Currently,the Insurance Capital Standard(ICS),which applies to internationall
321、y active insurance groups(IAIGs)and is being developed by the International Association of Insurance Supervisors(IAIS),and the economic valuebased solvency regime due to be introduced in Japan(the new regime)are still in the process of finalization.Against this backdrop and in anticipation of finali
322、zation of the ICS and the new regime,we need to further improve our financial capital strategy through measures such as utilization of the new standards in operations and refinement of our measurement techniques.Economic Solvency Ratio(ESR)Realization of capital circulation managementTo pursue capit
323、al circulation management,we have sought to improve capital efficiency by reducing market-related risk at Dai-ichi Life and raising the rate of remittances from subsidiaries and by applying the surplus capital generated from this to shareholder returns including share buybacks,and we have exercised
324、discipline in allocating capital to strategic investments for future growth.We will also pursue the capital circulation management required to realize sustainable growth in the future by continuously allocating capital to growing markets where even higher growth is expected,while simultaneously stab
325、ly generating cash flow from mature markets such as Japan.At the same time,we will strive for further evolution of capital circulation management by optimizing capital utilization and increasing earnings retained within the Group through intragroup finance including reinsurance.Main strategies for r
326、ealizing capital circulation managementrisk reduction initiativesAiming to lower the cost of capital,we are making steady progress on the reduction of interest rate risk and the reduction of equity risk in accordance with our risk reduction plan.Under the MMP covering fiscal 2021 and fiscal 2022,we
327、reduced risk by around 530 billion in total and made progress of 95%toward the market-related risk reduction target under this MMP formulated at the end of fiscal 2020.Furthermore,as a result of steady efforts to reduce interest rate risk,the sensitivity of our ESR to domestic and overseas interest
328、rates has continuously improved,leading to greater stability.With the introduction of the economic valuebased solvency regime slated for 2025,we will go beyond simply reducing risk in the future and shift to risks that promise to deliver even greater capital efficiency and,through this and other mea
329、sures,we will work to ramp up capital circulation management that will lead to enhancement of our corporate value.Progress95Current MMP risk reduction target(interest rate and equity risks total:560 billion)Interest rate and equity risks amount(before diversification effect)2.4 trillionInterest rate
330、 riskDecrease of approx.117 billionEquity riskDecrease of approx.33 billionMarket fluctuation factors(including changes in Group companies)Decrease of approx.160 billion2.1 trillion(DL)Effects of risk reduction initiativesApprox.150 billion(during fiscal 2022)Approx.1.2 trillion(30-year JGB equivale
331、nt)Ultra long JGBs purchaseApprox.200 billion(market value based on plan)Sale of equitiesInterest rate riskEquity riskInFY2022Approx.145 billionEnd of March 2022End of March 2023Market-related risk reductionRisk profile(after ESR standard change)End ofMarch2021End ofMarch2023End of March 2024Forecas
332、tMarket-related risk68Market-related risk6159Market-related riskDecrease of 7%Market-related riskInsurance risk 37 Insurance risk 36 Insurance risk 29 Market-related riskDecrease of 2%(interest rate and equity risks account for 41%)(interest rate and equity risks account for 35%)Short-and medium-ter
333、m risk profile(after transformation)Target level170200 Maintain stable dividends in line with profits Actively consider strategic investments and/or flexible additional shareholder payouts Maintain stable dividends in line with profits Consider strategic investments and/or flexible additional shareholder payouts with an awareness of financial soundness Maintain stable dividends in line with profit