Dai-ichi Life’s Profit Outlook Upgraded on Strong Returns

Dai-ichi Life has revised upward its full-year profit forecast, citing improved investment conditions, rising long-term bond yields, and stable policy retention rates. The update, released in an analytical disclosure dated 17 February 2026, reflects stronger-than-expected performance across core financial indicators.

For the financial year ending March 2026, the company increased its consolidated profit forecast from USD 3.1 billion to USD 3.3 billion. In local currency terms, the projection was raised from JPY 470 billion to JPY 500 billion. Results announced up to December show profit reaching USD 2.7 billion, representing approximately 90 per cent of the revised annual target. Management attributed the upward adjustment primarily to higher investment income and gains linked to equity market performance.

Net investment income is expected to record substantial growth during the current fiscal year. The improvement is driven by rising yields on long-term government bonds in Japan and enhanced returns from securities disposals. Investment income is forecast to increase from USD 10.3 billion to USD 12.9 billion, a rise of 24.9 per cent. The overall investment yield is projected to improve from 2.7 per cent to 3.2 per cent, widening the spread between asset returns and guaranteed policy rates. This development is expected to reinforce earnings stability and strengthen capital efficiency.

Despite higher domestic bond yields, policy surrender rates have remained broadly steady. Only a modest increase has been observed in withdrawals linked to certain single-premium products. Analysts note that the company’s continued emphasis on protection-oriented offerings has supported strong customer retention.

Revenue growth is also anticipated to remain positive. Total revenue is forecast to rise by 4.8 per cent to USD 36.1 billion, while net earned premiums are projected to increase by 5 per cent to USD 23.2 billion. These trends indicate sustained demand in life and health protection segments.

Key Financial Indicators

Long-term projections remain favourable. Research estimates suggest overseas operations could expand profits from USD 1.3 billion to USD 2.3 billion by 2030. Return on tangible assets is expected to approach 12 per cent by 2027 and remain near that level through 2030.

Overall, improved bond market conditions, disciplined risk management, and a widening asset-liability spread are expected to sustain earnings momentum. Investment income, alongside steady premium growth, is set to remain the principal driver of performance in the coming fiscal year, further reinforcing financial resilience and capital strength.