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Dai-ichi Life Holdings Inc

8750: XTKS (JPN)
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Morningstar Rating for Stocks Fair Value Economic Moat Capital Allocation

Dai-Ichi Life Is Lowering Risks and Focusing Investment in Areas With Returns Above Capital Cost

Business Strategy and Outlook

Following its demutualization and IPO in 2010, Dai-Ichi Life Holdings has transformed from one of Japan’s big four traditional life insurers to a multinational holding company with a multi-brand, multi-channel strategy. In Japan, Dai-Ichi Life Insurance Co. is still the largest entity, accounting for around two thirds of total assets, premiums, and profits. Its main sales channel is tied agents who are long-term employees of the company and give customized consultations to potential customers at their workplaces or homes, with various products tailored to different age groups and their savings and protection needs. The second-largest domestic entity is Dai-Ichi Frontier Life, established in 2006 when Japan was deregulating bancassurance and having steadily grown since then. It provides in-depth on-site training to bank tellers who mainly sell savings products, particularly foreign-currency-linked annuities. The third and smallest domestic entity is Neo First Life, which focuses on selling via the internet by providing products that are relatively easy to understand and easy for the insurer to process. Neo is small but growing rapidly with a skew toward younger customers.

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