Interim report
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NEWS RELEASE LiFenet LIFENET INSURANCE COMPANY August 12 , 2026 Junpei Yokozawa , President LIFENET INSURANCE COMPANY ( Securities Code : 7157 , TSE Prime ) Consolidated Financial Results for 1Q of Fiscal 2026 Ending March 31 , 2027 ( IFRS ) Annualized premium of policies - in - force of 37,810 million yen , up 7.4 % year on year TOKYO , August 12 , 2026 - LIFENET INSURANCE COMPANY ( TSE Prime 7157 , President Junpei Yokozawa , URL : https://ir.lifenet-seimei.co.jp/en/ ) discloses the consolidated financial results for the first quarter of fiscal 2026 ending March 31 , 2027 . Note on the scope of consolidation For 1Q of fiscal 2026 , Lifenet excluded LIFENET MIRAI Inc. , its consolidated subsidiary , from the scope of consolidation following the transfer of all shares in the company . As a result , as of the end of 1Q of fiscal 2026 , there are no longer any subsidiaries included in Lifenet's scope of consolidation . However , the money trust established by Lifenet for investment purposes continues to be included in the scope of consolidation , as it constitutes a structured entity controlled by Lifenet in accordance with IFRS 10 " Consolidated Financial Statements . " Consequently , even when Lifenet has no subsidiaries , consolidated financial statements are prepared in accordance with IFRS . 1. Overview of the financial results for 1Q of fiscal 2026 ended June 30 , 2026 ( 1 ) Business results Condition of policies - in - force Annualized premium * 1 of policies - in - force for individual life insurance and group credit life insurance ( " GCL " ) combined as of the end of 1Q of fiscal 2026 stands at 37,810 million yen ( 101.4 % of March 31 , 2026 ) . Annualized premium of policies - in - force for individual life insurance and GCL was 29,176 million yen ( 101.6 % of March 31 , 2026 ) and 8,634 million yen ( 100.7 % of March 31 , 2026 ) , respectively . The business performance of individual life insurance is as follows . The number of policies - in- force resulted in a total of 698,946 ( 101.9 % of March 31 , 2026 ) . Annualized premium of new business for 1Q of fiscal 2026 was 844 million yen ( 106.5 % of 1Q of fiscal 2025 ) and the number of new business was 22,244 ( 111.4 % of 1Q of fiscal 2025 ) . Surrender and lapse ratio * 2 for 1Q of fiscal 2026 was 5.2 % ( 5.6 % of 1Q of fiscal 2025 ) . * 1 : Annualized premium is the amount of money equivalent to what is to be paid to have the insurance coverage for one year , calculated by multiplying the premium per payment by a coefficient corresponding to the payment method . As all payments for Lifenet products are in monthly installments , we calculate annualized premium by multiplying the monthly premium by 12 ( for GCL , expected premium income for the next month based on the in - force business is used . However , if a premium rate revision is implemented at the start of the period following the relevant quarter , it is calculated based on the rate prior to the revision ) . * 2 : The surrender and lapse ratio is the annual equivalent of the monthly number of policies surrendered and / or lapsed divided by the monthly average number of policies - in - force . LIFENET INSURANCE COMPANY Copyright © LIFENET INSURANCE COMPANY All rights reserved . 1
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Copyright© LIFENET INSURANCE COMPANY All rights reserved. 2 NEWS RELEASE Results of operations (In millions of yen) 1Q of fiscal 2025 1Q of fiscal 2026 Change Insurance revenue 8,222 9,030 807 Insurance service results 2,945 2,104 (840) Financial results*3 183 323 140 Other results*4 (65) (124) (59) Net income (loss) before income taxes 3,063 2,303 (759) Net income (loss) attributable to owners of the Company 2,177 1,637 (540) Insurance revenue for 1Q of fiscal 2026 increased to 9,030 million yen (109.8% of 1Q of fiscal 2025). Insurance revenue for individual life insurance and GCL stood at 6,891 million yen and 2,138 million yen, respectively. As for individual life insurance, the main components of insurance revenue were 3,192 million yen in expected claims and maintenance costs *5, 419 million yen in change in risk adjustment for non-financial risks related to extinguished risks and 2,029 million yen in CSM*6 recognized for services provided. Insurance service results decreased to 2,104 million yen (71.5% of 1Q of fiscal 2025) mainly due to a decrease in profit from GCL caused by an increase in claim payments. Financial results were 323 million yen (176.7% of 1Q of fiscal 2025) mainly reflecting an increase in interest income resulting from higher holdings of corporate bonds. Other results were a loss of 124 million yen mainly because of recording expenses not directly related to insurance services. As a result, net income before income taxes was 2,303 million yen (75.2% of 1Q of fiscal 2025). Net income attributable to owners of the Company was 1,637 million yen (75.2% of 1Q of fiscal 2025). With respect to expenses related to insurance contracts incurred for 1Q of fiscal 2026, insurance acquisition cash flows, which are costs directly attributable to the acquisition of insurance contract groups, the sum of expenses related to marketing, underwriting and systems, etc., were 2,748 million yen (107.9% of 1Q of fiscal 2025). In addition, maintenance costs, which were not included in insurance acquisition cash flows, were 1,256 million yen (107.1% of 1Q of fiscal 2025). *3: Financial results are mainly total of investment results from financial assets, insurance finance income or expense and reinsurance finance income or expense. *4: Other results are the costs not directly related to insurance services and income/loss other than insurance business including product development costs and results of subsidiaries. *5: Maintenance costs are the costs directly related to fulfilling contracts and not included in insurance acquisition cash flows. They are mainly included in costs related to maintenance of insurance contracts and overhead costs for providing insurance services. *6: CSM stands for Contractual Service Margin, which represents the unearned profit that the company will recognize as it provides services over the coverage period. (Note) Insurance contracts pertaining to the reinsurance business launched in January 2026 are included in individual life insurance or GCL according to their characteristics, in consideration of materiality. The same applies to (2) Financial condition and (3) Management indicator “Comprehensive Equity."
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Copyright© LIFENET INSURANCE COMPANY All rights reserved. 3 NEWS RELEASE (2) Financial condition Assets, liabilities, and equity Total assets as of June 30, 2026 amounted to 120,166 million yen (121,834 million yen as of March 31, 2026). The major account balances were 72,821 million yen in investment securities mainly consisting of government bonds and corporate bonds with high credit ratings and 27,534 million yen in insurance contract assets. Although insurance contracts are generally recorded as liabilities, Lifenet records them as insurance contract assets *7 because the insurance contract liabilities in individual life insurance are negative as shown in the table below. Breakdown of insurance contract liabilities related to individual life insurance (In millions of yen) Present value of future cash flows (claims minus premiums) (141,751) Risk adjustment 17,086 CSM 97,138 Insurance contract liabilities related to individual life insurance: total (27,527) Liabilities amounted to 25,483 million yen as of June 30, 2026 (26,223 million yen as of March 31, 2026). The major account balance was 20,492 million yen in deferred tax liabilities. Equity amounted to 94,683 million yen as of June 30, 2026 (95,610 million yen as of March 31, 2026), mainly due to a decrease in insurance finance expense reserve, despite the recording of net income for 1Q of fiscal 2026. As a regulatory supervisory indicator for assessing management soundness, the "Economic Value-based Solvency Framework" was introduced starting from the end of March 2026. The new Economic Solvency Ratio (ESR)*8 stood at 339% as of June 30, 2026 (333.7% as of March 31, 2026), indicating that we maintain sufficient solvency. In addition, the internal ESR*9, which adjusts for risks and other factors to reflect the actual condition of our business, was 402% as of June 30, 2026 (394.5% as of March 31, 2026). *7. Classification as either insurance contract assets or insurance contract liabilities is determined for each category based on product characteristics, and therefore may differ from the total insurance contract liabilities (assets) for individual life insurance. *8, *9: The figures for the ESR and internal ESR as of June 30, 2026 are for reference only. (3) Management indicator “Comprehensive Equity” Lifenet has designated Comprehensive Equity*10 based on International Financial Reporting Standards (“IFRS”) as a key management indicator representing our corporate value. As a management goal in the mid-term business plan, we aim to achieve Comprehensive Equity of 200 billion yen to 240 billion yen in fiscal 2028. Comprehensive Equity as of the end of 1Q of fiscal 2026 was 174,854 million yen (99.3% of March 31, 2026). (In millions of yen) Mar. 31, 2026 Jun. 30, 2026 Change Comprehensive Equity 176,149 174,854 (1,294) IFRS equity 95,600 94,683 (917) CSM (tax-adjusted) 65,232 65,116 (116) GCL contracts value 15,315 15,054 (260) *10: Comprehensive Equity is an indicator defined by Lifenet. It is the sum of “Equity (attributable to owners of the Company)” on the IFRS consolidated statement of financial position (B/S), “CSM,” a liability representing unearned profit that Lifenet expects to earn as it provides insurance services (insurance contracts and reinsurance contracts are aggregated and tax-adjusted), and "GCL contracts value", which is the value of future IFRS earnings, including future renewals for GCL and other policies-in-force. We have defined it as the indicator that represents the corporate value of Lifenet as it includes the value of future profits of policies-in-force.
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Copyright© LIFENET INSURANCE COMPANY All rights reserved. 4 NEWS RELEASE (4) Business forecasts The consolidated business forecasts for fiscal 2026 announced on May 13, 2026 remain unchanged as shown below. (In millions of yen) Annualized premium of policies-in-force Insurance revenue Insurance service results Net income attributable to owners of the Company Business forecasts (May 13, 2026) 41,300 37,500 11,200 8,200 (Reference) Business results for fiscal 2025 37,290 34,388 11,606 8,041 (Reference) Breakdown of business forecasts for annualized premium of policies -in-force (In millions of yen) Individual Life Insurance Group Credit Life Insurance Total Business forecasts (May 13, 2026) 30,800 10,500 41,300 (Reference) Business results for fiscal 2025 28,718 8,571 37,290
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Copyright© LIFENET INSURANCE COMPANY All rights reserved. 5 NEWS RELEASE 2. Consolidated Financial Statements The following financial information was prepared in accordance with International Financial Reporting Standards (“IFRS”). (1) Consolidated statement of financial position (In millions of yen) March 31, 2026 June 30, 2026 ASSETS Cash and cash equivalents ············································ 13,598 12,808 72,821 1,319 27,534 1,596 404 863 2,274 542 120,16612,8 08 72,821 1,319 27,534 1,596 404 863 2,274 542 120,16612,8 08 Investment securities ···················································· 72,503 72,821 Other financial assets ··················································· 2,198 1,319 Insurance contract assets ·············································· 28,290 27,534 Reinsurance contract assets ·········································· 1,176 1,596 Property and equipment ················································ equipment ·································································· 427 404 Right-of-use assets ······················································ 928 863 Intangible assets ························································· 2,170 2,274 Other assets ······························································· 539 542 Total assets ·················································· 121,834 120,166 LIABILITIES Derivative liabilities ······················································ 209 190 Income taxes payable ··················································· 521 1 Other financial liabilities ················································ 2,250 1,389 Insurance contract liabilities ··········································· 786 2,135 Provisions ·································································· 142 142 Lease liabilities ···························································· 1,013 942 Deferred tax liabilities ··················································· 20,865 20,492 Other liabilities ···························································· 433 190 Total liabilities ················································ 26,223 25,483 EQUITY Share capital ······························································ 26,675 26,675 Capital surplus ···························································· 26,608 26,608 Retained earnings ························································ 47,516 49,153 Treasury shares ·························································· (0) (0) Other components of equity ··········································· (5,200) (7,754) Total equity attributable to owners of the Company 95,600 94,683 Non-controlling interests················································ 9 － Total equity ··················································· 95,610 94,683 Total liabilities and equity ································· 121,834 120,166
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Copyright© LIFENET INSURANCE COMPANY All rights reserved. 6 NEWS RELEASE (2) Consolidated statement of profit or loss (In millions of yen) Three months ended June 30 2025 2026 Insurance revenue ······························································ 8,222 9,030 Insurance service expense ··················································· (4,909) (6,995) Net expenses from reinsurance contract held ··························· (368) 70 Insurance service result ······················································· 2,945 2,104 Interest income ·································································· 284 358 Impairment losses on financial assets, net ······························· (0) (0) Other financial income ························································· (99) (71) Net investment income ························································ 184 286 Insurance finance income (expense) ······································ (5) 33 Reinsurance finance income (expense) ··································· 4 3 Other revenue ···································································· 34 29 Other expense ··································································· (94) (150) Other financial expense ······················································· (4) (4) Net income (loss) before income taxes ···································· 3,063 2,303 Income taxes expense ························································· (886) (666) Net income (loss) ································································ 2,176 1,637 Net income (loss) attributable to: Owners of the Company····················································· 2,177 1,637 Non-controlling interests····················································· (0) 0 Net income (loss) ······························································ 2,176 1,637 Net income (loss) per share attributable to owners of the Company Basic ·············································································· 27.11 20.38 Diluted ············································································ － －
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Copyright© LIFENET INSURANCE COMPANY All rights reserved. 7 NEWS RELEASE (3) Consolidated statement of comprehensive income (In millions of yen) Three months ended June 30 2025 2026 Net income (loss) ································································ 2,176 1,637 Other comprehensive income Items that will not be reclassified to profit or loss: Financial assets measured at fair value through other comprehensive income ······················································ － (966) Items that will not be reclassified to profit or loss － (966) Items that may be reclassified subsequently to profit or loss: Financial assets measured at fair value through other comprehensive income ······················································ 54 (209) Insurance finance income (expense)····································· 931 (1,443) Reinsurance finance income (expense) ································· 41 64 Items that may be reclassified subsequently to profit or loss 1,027 (1,588) Other comprehensive income net of tax ·································· 1,027 (2,554) Total comprehensive income ··············································· 3,204 (917) Total comprehensive income attributable to: Owners of the Company ····················································· 3,204 (917) Non-controlling interests ····················································· (0) 0 Total comprehensive income ··············································· 3,204 (917) About LIFENET URL： https://ir.lifenet-seimei.co.jp/en/ LIFENET INSURANCE COMPANY has developed the LIFENET Manifesto that embodies our mission of “Helping our customers embrace life more fully through management with integrity, and offering easy-to-understand, affordable, convenient products and services.” We have consistently delivered customer-oriented products and services since our business commencement. As the leading online life insurer, we leverage digital technology to fulfill our commitment to “delivering the Ultimate Insurance Experience.” Contact: Investor Relations, Corporate Planning Department Tel: +81-3-5216-7900 e-mail: ir@lifenet-seimei.co.jp Disclaimer: This is a summarized translation of the original Japanese document, prepared and provided solely for readers' convenience. In case of any discrepancy or dispute, the Japanese document prevails.