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• Key 2025 Operational Milestones

  • Completed the acquisition of Cosmos Ability, a system development company, in January 2025, enabling in-house development of insurtech to improve productivity and support the refresh of the group core system A-system.
  • Transitioned to a holding company structure in July 2025, completed group organizational restructuring in October 2025, which centralized group management functions at the holding company level, placed all core operating subsidiaries (Agent Insurance Group, Financial Japan, Cosmos Ability, US entity) under the direct control of the holding company, enabling faster decision-making and accelerated M&A strategy.
  • Expanded partnerships in July-August 2025: launched attorney fee insurance for business owners with Ashiro Short-Term Insurance, started housing loan brokerage at Financial Japan with au Jibun Bank, began business succession support collaboration with M&A Research Institute, advancing the "Hybrid Advisor" concept that provides one-stop insurance, housing loan and business succession support.
  • Completed capital and business alliance with Matsui Securities in November 2025: raised 0.695 billion yen in growth capital via third-party allotment, which will be used as standby capital for M&A and business succession; Matsui Securities became the largest shareholder, and the partnership aims to combine Matsui's strong customer base of high-net-worth investors with Agent IG's face-to-face consulting capability to create new customer touchpoints.
  • Executed 79 business successions in FY2025, bringing cumulative M&A and business successions of insurance agencies to 672 cases to date.
  • Total group sales employee count reached 1,196 as of end-December 2025, an increase of 54 from the prior year end.
  • Equity ratio reached 31.6%, with materially improved financial soundness after the capital increase from the Matsui Securities alliance.

• Core Growth Strategies

  1. M&A and Business Succession Strategy
  • The Japanese non-life insurance market has grown 35% from 7.1 trillion yen in FY2011 to 9.6 trillion yen in FY2024, and is expected to continue growing amid increasing natural disaster and cyber risks; the life insurance market returned to growth and reached 43 trillion yen in FY2023, partially driven by increased interest in investment products such as NISA and iDeCo. Against this backdrop, the number of non-life insurance agencies has declined from a peak of 623,000 in March 1997 to 140,000 in March 2025 due to stricter regulatory requirements, while the number of insurance agents has remained flat, leading to larger average agency size and ongoing industry consolidation.
  • Agent IG views the June 2026 amended Insurance Business Act as a growth opportunity: the amendment strengthens compliance requirements, bans customary industry concessions, tightens rules for comparison-based product recommendation, and forces more small and mid-sized agencies, side-business agencies and corporate agencies to choose between continuing or exiting the market. The company will expand its M&A target scope from traditional small and mid-sized specialized agencies to large specialized agencies, corporate agencies and adjacent industry businesses, leveraging newly raised capital to accelerate M&A, and drive revenue diversification and growth via cross-selling life insurance to newly acquired customer bases, anchored by stable non-life insurance recurring revenue.
  1. Technology Utilization
  • The acquisition of Cosmos Ability enabled in-house development of the core group system A-system, which is scheduled to go live in 2026. The refresh will improve usability, strengthen CRM functionality, add a management dashboard, and reduce administrative costs to build a high-leverage revenue structure where sales growth directly translates to profit growth.
  1. Overseas Business Expansion
  • The US insurance market is 43 times larger than Japan's non-life insurance market at 418 trillion yen, and also faces the structural issues of aging owners and lack of successors for insurance brokers and agencies. Agent IG has obtained insurance operation licenses in 40 US states plus Washington DC, and has established bases in California, Texas and Georgia. It will continue expanding locations, serving cross-state corporate client demand, and developing both the Japanese expat/ Japanese company market and the local US market.

• For FY2026 (ending December 2026), management guides: operating revenue of 13.6 billion yen (+4% year-over-year), operating profit of 0.2 billion yen (+37% year-over-year), ordinary profit of 0.18 billion yen (+27% year-over-year), and net income of 0.08 billion yen, representing a significant increase from FY2025.
  • Management expects 100 million yen or more in total annual cost reduction from group structure optimization and post-merger integration, with 60 million yen of cost reduction contributing to FY2026 profits, and the remaining 40 million yen contributing to FY2027 profits.
  • For domestic operating profit in FY2026, management projects 0.18 billion yen, a 34% year-over-year increase. This accounts for 144 million yen in total incremental profit from business growth (77 million yen) and structural cost reduction (67 million yen after excluding the portion that will take effect in FY2027), offset by a total of 100 million yen in strategic investment across three growth foundations: governance, human capital, and DX.
  • Management expects that the investments in governance, talent, and system refresh will bear fruit starting from 2027: after 2027, the full-year effects of system efficiency improvements and group structural reform will lead to limited growth in fixed and administrative costs even as sales scale expands, creating a high-leverage structure where sales growth directly drives profit growth, leading to significant profit expansion.
  • The company maintains its long-term target of 1 billion yen in net income, which would support a market capitalization of 30 billion yen at a P/E of 30x, with no change to this target, though no explicit timeline is provided.

No specific segmented financial performance with separate absolute figures or revenue contribution percentages for individual product segments is provided in the transcript. Aggregate consolidated results are as follows: Full year 2025 operating revenue reached 13.066 billion yen, up 60.1% year-over-year; operating profit reached 0.145 billion yen, up 1.6% year-over-year. Q4 2025 operating revenue was 3.459 billion yen, up 11% year-over-year, marking a new quarterly record. Total handled insurance premium across the group reached 184.8 billion yen, with 29,467 corporate customers and 344,979 individual customers, representing a more than doubling of the group's customer base after the inclusion of Financial Japan.

• The upcoming June 2026 amendment to the Insurance Business Act imposes stricter compliance and operational requirements on insurance agencies, which creates short-term cost pressure for industry players including Agent IG, though management views this as a long-term growth opportunity to consolidate market share.
  • Current low operating profit is driven by intentional strategic pre-investment in governance compliance, systems, and organizational structure to prepare for industry restructuring, which will suppress near-term margins until investments bear fruit after 2027.
  • The insurance industry faces ongoing structural reputational risk from industry-wide misconduct such as fraud by sales representatives, which can impact public trust in the entire sector including Agent IG.
  • The company currently has low stock liquidity and low trading volume, which is a recognized issue that the company is continuing to address but has not yet resolved.
  • Achieving the company's long-term profit targets and growth trajectory depends on successful integration of acquired agencies and execution of M&A, which carries inherent execution risk.

• Q: What are the specific details of costs for business quality and governance system strengthening?

A: The main component of these costs is personnel expense, which comes from expanding the compliance function and the management department, not just general headcount growth. Management believes upgrading the governance system is critical amid the current changing industry environment, so it is deploying specialized talent, making strategic system investments, and strengthening auditing and training systems, all of which are categorized as governance costs.

• Q: When will the investment phase end and profitability start to improve meaningfully, and what are the key drivers?

A: Timing is flexible due to factors such as the impact of the amended Insurance Business Act, so management avoids making definitive commitments, but it plans for meaningful profit growth to start from 2027 onward. The key reasons are: 1) The 2025-2026 period is positioned as the core investment period, when base-building for regulatory response and M&A acceleration will peak; 2) By 2027, the cost reduction effects from the A-system refresh and group structural reform (100 million yen annually) will start to contribute in full; 3) This will enable the transition to a high-leverage structure where sales growth directly translates to profit growth, driving improvements in operating margin.

• Q: What is the progress of the capital and business alliance with Matsui Securities, and when will it impact earnings?

A: The biggest synergy comes from offering financial planning services to Matsui Securities' strong customer base of investment-literate high-net-worth individuals. Management expects it will take time to build and penetrate the partnership scheme, so it does not anticipate large near-term results, but based on past experience with other partnerships (such as the existing alliance with a major credit card company), it is confident that the partnership will contribute to earnings and enterprise value over the medium to long term. As of early 2026, the partnership teams from both sides have started on-site operational work and are currently advancing discussions.

• Q: Why is net income low relative to ordinary profit in both 2025 actual results and 2026 guidance?

A: This is related to the company's core M&A business model: goodwill amortization from M&A is not tax-deductible, which increases the effective tax burden on consolidated ordinary profit. Additionally, the newly established holding company Agent IG Holdings has a temporary standalone net loss, which makes the consolidated tax burden appear larger. This issue will be resolved going forward via adjustments to inter-group profit and loss.

• Q: When will shareholder returns such as dividends and share buybacks be implemented, and what profit threshold is required?

A: Specific timing cannot be shared, but internal discussions are ongoing.

• Q: What is the current level of free float, and what are the plans to improve stock liquidity?

A: Management does not have the latest exact figure available to share today, but it recognizes that low liquidity is an area for improvement, and will continue to examine measures to address this issue.

• Q: Can trading volume be increased to attract new investors?

A: Management has been examining this issue, and expects it will be resolved as liquidity improves.

• Q: Is there room to improve the low operating profit margin, and what is management's view?

A: As previously noted, the company is actively investing in governance costs and system development currently, and these investments will produce results after 2027.

• Q: Are personnel expenses and goodwill amortization the main factors squeezing earnings?

A: Goodwill amortization was already accounted for at the time of acquisition and is not considered a current earnings squeeze factor. However, personnel expenses are one factor weighing on current profits, as previously noted.

• Q: What are the planned future IR events?

A: The company plans to continue participating in the Meigi IR Expo every year, and is also planning to participate in one additional major IR event. Details will be published on the company website in due course.

• Q: What is the progress of overseas business expansion, and what is the business environment like in the US?

A: Similar to domestic partnerships, the company has been advancing discussions with multiple industries and major insurance brokers in the US, as initially announced two years ago, and management plans to visit the US to advance these discussions going forward. The US market is very large, so there is reason for optimism.

• Q: What is the status of the M&A standby capital raised from the capital increase?

A: The capital is held standby for M&A as publicly stated, and the company will deploy it appropriately and advance M&A activity actively.

• Q: Why did you choose to partner with M&A Research Institute?

A: After discussions with multiple M&A-related firms, M&A Research Institute was selected because its culture and approach aligned well with Agent IG's, and it was the best fit including the partnership structure.

• Q: What are your thoughts on 2027 earnings, and when will the long-term target of 1 billion yen in net income be achieved?

A: The long-term target of 1 billion yen in net income (supporting a 30 billion yen market capitalization at 30x P/E) remains unchanged, and the company is continuing to progress toward this target via the transition to a high-leverage structure. No explicit timeline can be provided currently.

• Q: Can you explain the representative change at Financial Japan?

A: Mr. Ikeda, the former CEO who joined with Financial Japan, has become chairman. Given the challenging environment for the agency industry, the company needed two experienced leaders to manage operations and strengthen governance, so Mr. Kobayashi, who has an excellent track record at a large combined agency, joined as the new CEO.

• Q: Will you add executive headshots to the corporate website?

A: This has been under internal discussion for some time, but multiple points including the scope of coverage (whether to include all executive officers) are still under examination, so no implementation date has been set.

• Q: What are your thoughts on listing on the Tokyo Stock Exchange, and what conditions would trigger a review?

A: The company is not unprepared for a TSE listing and is watching for the right timing. However, the minimum market capitalization requirement for TSE listing is a challenge for many venture firms, and the company wants to avoid a scenario where it lists and is then delisted quickly, which would harm investors. The company will wait until conditions are appropriate and prepare thoroughly before moving forward.

• Q: Have you conducted investigations in response to the recent scandal at a foreign insurance company, and what impact has it had?

A: Misconduct such as sales fraud has long been a structural industry-wide issue, which management takes very seriously. Prior to the acquisition of Financial Japan (which is primarily focused on life insurance, and had some employees who previously worked at the foreign firm in question), Agent IG conducted a full pre-acquisition investigation, and confirmed no material issues were present.

• Q: Did the transition to a holding company increase the cost burden?

A: Management does not believe there is a material increased cost burden from duplicate structures.

• Q: Why do you prioritize shareholder returns over shareholder events?

A: The company is currently not generating sufficient profit, so it believes prioritizing shareholder returns over events is the appropriate approach.

• Q: Will you continue to pursue social contribution activities such as donations equal to 1% of net income?

A: The company plans to implement social contribution activities going forward, and views this as an important part of management policy, so it will continue these efforts aligned with its approach.

• Q: Is the 2026 earnings forecast a conservative forecast that is unlikely to be revised downward, given the history of year-end downward revisions?

A: Management has conducted thorough internal reviews, and states that the 2026 forecast is based on a much more conservative set of assumptions than prior forecasts at this point in time.

• Q: Are you considering overseas expansion outside of the US?

A: Yes, the company is considering expansion to other large GDP countries that are major insurance and financial markets, and is holding preliminary discussions in these markets.

• Q: What is your view on the recent foreign insurance scandal, and what is the industry doing to prevent similar issues?

A: Management finds the incident deeply regrettable. First, the company is fully focused on ensuring that no similar incident occurs internally. Beyond that, the company has engaged in active discussions with the Financial Services Agency and local financial bureaus about how to prevent similar issues across the industry, and has welcomed regulatory feedback on any gaps in Agent IG's own practices. Strengthening internal governance to comply with all applicable regulations (including the Insurance Business Act and the Companies Act for listed firms) is critical to improving the standing of the insurance industry, avoiding harm to customers, and delivering stable growth to shareholders, which management emphasizes is a core priority for the company.