Dai-ichi Life's embedded value drops amid acquisition costs, inflation

Dai-ichi Life Holdings (TSE: 8750) disclosed its embedded value (EV) for the group as of March 31, 2025, revealing a decrease to JPY 8,164.6 billion from JPY 8,510.6 billion in the previous fiscal year. This decline is largely due to increased costs associated with acquisitions and the impact of inflation. The value of new business increased to JPY 172.4 billion from JPY 106.8 billion. Dai-ichi Life's own EV decreased to JPY 5,705.0 billion from JPY 6,114.5 billion. The company has adopted a new standard for EV calculation, incorporating Economic Value-based Solvency Regulation, and has retroactively adjusted previous measurements to align with this standard. Sensitivity analysis indicates that the group EV is susceptible to fluctuations in interest rates and equity market performance.