T&D Holdings, Inc.

Business Details

Taiyo Life Insurance is a life insurance company that primarily targets the household market, offering products and services centered on individual insurance and individual annuity insurance. It develops proprietary products such as the Prevention Insurance Series and Hoken Kumikyoku Best MY WAY. The company is promoting hybrid-style sales through T-AI-Face (AI-Equipped Sales Terminal). In FY2026 (ending March 2026), while the impact of reinsurance transactions continued, ordinary profit increased significantly year on year due to expanded investment income and other factors.

Recent Overview

While the impact of reinsurance transactions continued, segment profit increased 46.7% year on year due to expanded investment income and other factors.

In the Taiyo Life Insurance segment for FY2026 (ending March 2026), ordinary revenues decreased significantly to ¥1,275,387 million (down 25.5% year on year), while segment profit rose substantially to ¥116,588 million (up 46.7% year on year). Due to the effect of the block reinsurance transaction for existing whole-life dementia/long-term care annuity insurance policies conducted in the prior period, a large reversal of policy reserves had occurred in the prior period, but in the current period this shifted to a provision for policy reserves of ¥49,287 million. Premium and other income increased to ¥983,087 million due to a significant rise in reinsurance income (¥333,956 million). Interest and dividend income, etc. also expanded to ¥163,313 million (up 9.9% year on year). Extraordinary losses increased substantially to ¥29,691 million (up 577% year on year), affected by losses on disposal of fixed assets and other factors.

Key Products

Growth Drivers

• Expansion of premium and other income driven by a substantial increase in reinsurance income (¥333,956 million, up 314.7% year on year)
• Expansion of investment income centered on increased interest and dividend income, etc. (¥163,313 million, up 9.9% year on year)
• Promotion of hybrid-style sales and expanded customer touchpoints through introduction of T-AI-Face (AI-Equipped Sales Terminal)
• Differentiation in the household market and new policy acquisition through proprietary products such as the Prevention Insurance Series
• Expansion of the investment asset base accompanying growth in segment assets (¥6,754,113 million, up 0.9% year on year)

Risks

• Ordinary revenues decreased 25.5% year on year to ¥1,275,387 million, and fluctuations in the revenue/expense structure due to reinsurance transactions continue
• Policy reserves shifted from a large-scale reversal in the prior period (△¥687,842 million) to a provision in the current period (¥49,287 million), indicating high risk of volatility in the revenue structure
• Extraordinary losses increased substantially to ¥29,691 million (up 577% year on year), with temporary expenses such as losses on disposal of fixed assets pressuring profit
• Individual insurance / individual annuity insurance premiums decreased to ¥557,146 million (down 11.1% year on year), continuing the trend of a shrinking existing policy base
• Risk of duration mismatch between assets and liabilities amid rising domestic interest rates
• Risk of a shrinking household market due to population decline and the advancing low birthrate/aging society