Asahi Life's core profit jumps 67.7% in H1 2024

Asahi Life plans to enhance profits in protection-type products.

Asahi Life’s first half of 2024 (H1 2024) group core profit surged 67.7% year-on-year (YoY) to $145.6m (¥22.4b), primarily due to higher interest and dividend income from alternative investments and lower foreign exchange hedging costs. 

Asahi Life's core profit rose to $189.8m (¥29.2b), an increase of $67.6m (¥10.4b), driven by a significant reduction in negative spreads from $-118.95m (¥-18.3b) in 1H23 to $-7.8m (¥-1.2b) in 1H24. 

However, this was partially offset by a 17.8% drop in insurance-related results to $197.6m (¥30.4b). Meanwhile, Nanairo Life reported a core loss of $44.2m (¥6.8b), widening by $9.1m (¥1.4b), due to increased business expenses linked to its expansion.

Consolidated group insurance premium income rose to $1.42b (¥219b), a 2.8% increase from the previous year (1H23: $1.38b (¥213b)), largely due to an increase in in-force policies at Nanairo Life. 

The annualised premium of new contracts (ANP) reached $121.55m (¥18.7b), up 2.4% YoY, with Asahi Life contributing $64.35m (¥9.9b) (up 2.8%) and Nanairo Life adding $57.2m (¥8.8b) (up 1.9%).

Looking ahead, Asahi Life plans to enhance profits in protection-type products and maintain an ESR range of 220% to 260% from 2024 to 2026.

For the fiscal year ending March 2025, the group anticipates flat insurance premium income and modest growth in core profit, supported by continued gains in interest and dividend income. 

New product launches, such as the early-stage nursing care lump-sum payment rider, are expected to drive future sales, CreditSights said.

($1.00 = ¥153.59)