Dai-ichi Life's final profit forecast revised downward by more than 200 billion yen 17:40 on April 1 due to the impact of the new corona
Dai-ichi Life Holdings, a major life insurance company, has announced that its net income for the fiscal year ending March 31 will be 200 billion yen less than expected. Amid the disruption of the financial markets caused by the spread of the new coronavirus, insurance products in foreign currencies needed to be more prepared for payment.
Dai-ichi Life Holdings forecasted a net profit of 226 billion yen in the fiscal year ended March 31, but announced a downward revision when it decreased by more than 200 billion yen to only 17 billion yen.
The company's main reason is that as the spread of the new coronavirus disrupted the financial markets, the company needed to increase its internal reserves in preparation for insurance payments.
This means that insurance products are managed in foreign currencies, in which premiums are managed in foreign currencies, and the amount of claims received varies depending on the result, and there is a possibility that policyholders will pay more claims than expected.
In addition, the stock price of the UK asset management company, a group company, has fallen sharply, resulting in an extraordinary loss.
Dai-ichi Life states that the earnings forecast for the insurance business itself has not changed.
Mitsubishi UFJ Financial Group also announced an extraordinary loss of more than ¥ 340 billion due to the fall in global stock prices, and the market turmoil caused by the spread of the new coronavirus will affect the performance of Japanese financial institutions Has been exerted.