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Dai-ichi Life Holdings Inc. on Wednesday sharply revised down its group net profit projection for the year that ended Tuesday due to the financial market turmoil stemming from the COVID-19 pandemic.

The major Japanese life insurer now expects a net profit of ¥17 billion, more than 90 percent lower than the ¥226 billion initially projected.

The revision was prompted by steep interest rate falls mainly in overseas markets and a sizable decline in stock prices of a group company listed overseas.

Meanwhile, its forecast for group adjusted profit, a source for shareholder returns such as dividends, remains intact at approximately ¥240 billion.

Due to the falls in interest rates, Dai-ichi Life Holdings increased policy reserves at Dai-ichi Frontier Life Insurance Co., a subsidiary, by ¥160.5 billion.

The downward revision in the net profit estimate also reflected one-time amortization of goodwill at British asset management firm Janus Henderson Group PLC, an affiliate listed on the New York Stock Exchange, following a plunge in the company’s stock price.

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