LIFENET INSURANCE COMPANY
7157・Prime Market・Insurance
Business
Lifenet Insurance is an internet-only life insurance company established in 2008. Under its management philosophy of "operating honestly and providing simple, affordable, and convenient products and services," it offers simple individual insurance products online, including term death insurance, medical insurance, cancer insurance, disability insurance, and dementia insurance. Since July 2023, the company has also expanded into the Group Credit Life Insurance (Danshin) business through a partnership with au Jibun Bank. It is also expanding its Partner Business through capital and business alliances with KDDI, Sumitomo Mitsui Card, Japan Airlines, and others. In July 2025, the company moved to the Prime Market of the Tokyo Stock Exchange, transitioning to its next stage of growth.
Business Model
By adopting an internet-only model without sales agents or physical stores, the company keeps sales expenses low and offers premiums that are inexpensive relative to competitors. Its primary source of revenue is insurance service result, calculated by deducting insurance claims, maintenance costs, and insurance acquisition costs from premium income. Under IFRS 17, the company has a structural mechanism for expanding revenue, whereby CSM (unearned profit to be recognized in the future) is released each period in line with the accumulation of in-force policies. In the Group Credit Life Insurance (Danshin) business, the company provides insurance to mortgage users of partner financial institutions, benefiting from economies of scale.
Company Strengths
The company won the No. 1 overall ranking in the "2026 ORICON Customer Satisfaction Survey" life insurance category for two consecutive years, achieving a double crown by also ranking No. 1 in the term medical insurance expert evaluation. In the HDI rating benchmark, it achieved the highest rating for the 13th time, an industry-leading record. Continuous improvement in customer experience has been objectively evaluated by external institutions, and the lapse and surrender rate has also improved to 5.5% (5.7% in the previous fiscal year).
With the application of IFRS17, the CSM representing the future profit of policies in force has accumulated to ¥97,385 million at the end of the current fiscal year under review, and the periodic CSM release (¥7,871 million in the current fiscal year, ¥7,440 million in the previous fiscal year) structurally boosts insurance revenue and insurance service results. Annualized premium of policies in force has steadily expanded to ¥37,290 million (108.0% compared to the end of the previous fiscal year), providing high visibility into earnings.
In addition to partner businesses with KDDI (au no Hoken), Sumitomo Mitsui Card (V Point Tamaru Hoken), and Money Forward Home, the company concluded a capital and business alliance with Japan Airlines in April 2026. The Group Credit Life Insurance (Danshin) partnership with au Jibun Bank (annualized premium of policies in force of ¥8,571 million) is also expanding. By embedding its insurance business into diverse economic ecosystems, the company is diversifying its customer acquisition channels beyond the Direct Business.
ENVALITH's Perspective
Performance Trend
Insurance revenue grew for five consecutive fiscal years, from ¥26,167 million in FY2022 to ¥34,388 million in FY2026. Net income turned profitable in FY2024 after losses in FY2022 and FY2023, and accelerated further in FY2026 to ¥8,041 million (+34.2% YoY). The insurance service margin improved to 33.8% (from 31.8% in the prior period). As an external factor, actual insurance claims and benefits paid in FY2025 came in below expectations, boosting profit. Increased interest income from higher holdings of corporate bonds (¥1,255 million, up from ¥974 million in the prior period) also contributed. Comprehensive equity stood at ¥176,149 million (up from ¥167,090 million in the prior period), progressing steadily toward the medium-term target of ¥200.0–240.0 billion (FY2028). The forecast for FY2027 (ending March 2027) calls for insurance revenue of ¥37,500 million (+9.0%) and net income of ¥8,200 million (+2.0%), a conservative plan that factors in normalization of insurance claims and benefits paid.
Growth Strategy
Concentrated investment in three priority areas to achieve comprehensive capital of ¥200.0–240.0 billion in FY2028
Utilizing IT services such as AI and the My Number system to deepen the digitalization of insurance application, underwriting, and claims processes. Maintenance expenses came to ¥4,977 million (down 1.8% year on year), reflecting progress in efficiency improvements, with productivity gains from technology investment contributing to improved profit margins.
Advertising expenses of ¥6,701 million (versus ¥6,003 million in the previous period) were deployed, driving accelerated growth with annualized premium from new policies of ¥3,384 million (up 16.1% year on year) and 86,990 new policies (up 18.7% year on year). The surrender and lapse rate also improved to 5.5% (versus 5.7% in the previous period), expanding the pace of net growth in policies in force.
A capital and business alliance with JAL was concluded on April 30, 2026. Following the change in major shareholder from auFH to JAL, the company aims to build an embedded insurance sales channel leveraging the airline's customer base and mileage program members. The company has stated that the impact on FY2027 (ending March 2027) results will be minor, and specific details of the initiative have yet to be finalized.
Last updated: July 19, 2026