Thank you very much for coming to this conference call.
Today we released the first quarter results, so I'm going to give you some overview on the numbers. Starting from today, we are using new formats for materials, using our new corporate color, blue. Sorry for the inconveniences caused by the change of the format. Please go to page three. I will cover three main points. First, on group consolidated results. The group adjusted profit for the first quarter was JPY 74.2 billion. The progress rate for the full-year budget is 18%. Due to the seasonality of the interest rate and dividend payment, this progress is as expected. The domestic business adjusted profit was JPY 42.7 billion, a 14% achievement to the full-year forecast. However, with the higher rate, we front-loaded the sale of bonds. That impacted, and also the seasonality of the interest rate and dividend payment impacted as well. There's no serious impact on the full-year target.
For international business, the profit was JPY 33.3 billion. Higher yen has pushed down the profit. However, Protective had a high achievement ratio because of the sale of subsidiary agents. For overseas business as a whole, it's a good progress rate. Now, regarding the ESR, the June end ESR is about 204%. Increasing mass lapse risk due to a higher rate, the number was pushed down by 6 percentage points from the previous term. However, a sufficient level is maintained. Now, a Tao investment in Challenger update. When this deal was announced, we were waiting for the approval from the authority, but now we got the approval. Starting from August 1, this has been the equity-method affiliate company. We expect about JPY 10 billion per year contribution. For this, relating to this deal, there has been a collaboration agreement among Tao, MLC, and Challenger.
We expect the further expansion of the synergy impact. Please go to the next page. Our current status towards the annual profit target and its background. For domestic business, the progress rate is 14%, as I said. For Dai-ichi Life Holdings' yen bond rebalancing, which will make JPY 80 billion loss from sale because of the current interest rate environment, we front-loaded selling of bonds. As of the first quarter, about JPY 40 billion valuation loss from sale was booked, which is about half of the annual budget of selling. Regarding the buying, that will be executed on a timely basis. Losses recognized before buying activities. Interest and dividend income from risk assets concentrate in the second and fourth quarters. That impacted as well. However, we are on track for achieving the target. For Dai-ichi Frontier , because of yen's appreciation, dividend income declined.
Unreinsured yen products' sale increased, and that impacted the loss to some extent. Now, regarding international business, the adjusted profit was JPY 33.3 billion, and the progress rate towards the full-year outlook is 29%. Higher yen pressure, however, is a favorable situation. For Protective Life Corporation, because of the sale of the agent and its initiatives to make business efficient and investment portfolio transformation, they are consistently generating profit. Regarding Tao, recently, the Australian market has been witnessing the increase in the IP claims. Through repricing and other initiatives, we are going to control risks. For non-insurance business, for asset management business, recently announced Capula Investment Management and Underdo, the deals started contributing to our profit. The progress rate is 14%. In the second quarter, we expect the contribution from the Dai-ichi Marubeni Real Estate collaboration.
Now, regarding the sale of domestic equities to reduce equity risks, currently under the current midterm plan, we actually sold JPY 480 billion, which is higher than the plan. For this fiscal year, we expect to sell JPY 380 billion. The stock market has been rising, and that is actually negatively influencing the risk reduction activities. It depends on the stock price level, but as long as July end stock price level is maintained, we believe that we have to add the sale in addition to JPY 380 billion. The proceeds from the sale will be partially used for rebalancing of domestic bonds. We will keep watching closely the stock and rate trends. Next page. This is adjusted profit versus the same period of last year. The group adjusted profit is JPY 74.2 billion. Compared to the same period of last year, it declined 49%.
The domestic business and the lack of temporary effect of Dai-ichi Life Insurance Company Limited, the Bermuda, last year impacted. For Dai-ichi Frontier , higher profit from surrender and lower yen impact we saw last year were eliminated, and it declined by about JPY 10 billion. For international business, as I said, Tao suffered from increasing IP policy claims, but Protective Life Corporation increased its profit. For international business as a whole, the profit was actually better than last year. For non-insurance business, the new companies from asset management and the new business, the fields contributed to the profit. For Holdings and others, in Dai-ichi Life Bermuda, the one-off accounting income of JPY 7 billion was eliminated. Also, expansion of the credit spread in the United States negatively impacted. Please go to the next page.
Based on the increase of the super long rate, this is our update for outlook for the positive spread of Dai-ichi Life. Our interest rate risk is already very low. In the past, we have been accumulating JGBs, and we did rebalancing of the portfolio. Our fixed income asset yield is steadily improving. For the future, with the further improvement of the portfolio, we expect further yield enhancement. Regarding the liabilities' average assumed rate, high-cost policy attrition and the legacy reinsurance arrangement contributed to the lower assumed rate. We expect that this continues to lower. Regarding the positive spread, the asset yield declined because of the sale of domestic stocks. That is actually offset by JGB rebalancing. On a net basis, the underlying yield would be positive. Regarding the yield for risk assets, there is some impact from the sale of stocks, but with more allocation to alternative assets.
With the fixed income rebalancing, we expect that the positive spread will improve by JPY 10 billion per year. Please go to the next page. This is the outlook for insurance P&L of Dai-ichi Life and explanation on the factors. The insurance P&L for 2025 declined by JPY 40 billion compared to the previous year. For this fiscal year, the one-off factors like the economic environment have been discounted, and the decline is rather large compared to the previous or the average years. Invoice business, the decline impacted. Since last fiscal year, there is a recovery of the new policy acquisitions. The impact of invoice reduction will actually be smaller because of the new business acquisitions. Last year and two years ago, we conducted wage hikes, and that contributed to the increase of the cost in the personnel expenditures. Those temporary factors will wane next year.
For those factors, over time, we expect that the impact will be much lower after 2026. On the other hand, there is a change in the external environment. For example, reserving burden increased and the non-personnel expenditure increased. This situation would continue for some time, pushing up our non-personnel cost. In order to respond to the possible worsening of insurance P&L, we actually will consider the initiatives to make our business efficiencies separately from cost reduction projects that we announced in the previous midterm plan. Regarding the details of those initiatives, we will report as we progress. Next page. This is about the difference between adjusted profit and net income. Consolidated net income is lower than adjusted profit, particularly valuation loss at Dai-ichi Life, Bermuda, that was rather substantial. I just want to explain on this. In Dai-ichi Life, Bermuda, we use U.S. GAAP. On U.S.
GAAP, only risk-free rate changes are recognized as net income, not reflecting credit spread changes. It's actually recognized as a book loss again. On the other hand, all changes in asset market value are recognized. This accounting mismatching leads to valuation gain or loss on P&L. This is quite similar to Frontier's MBA gain and loss and non-cash items of PLC. Over time, this will go away. This will be the subject of group adjusted profit reconciliation. This is a non-cash item, so there's no direct impact on the remittance. Please go to the next page. This is about new business results. For domestic three companies, the value of new business declined slightly, and it's JPY 27 billion. The first half in Dai-ichi Life, BO and B increased because of the launch of new products.
Without new products this year, I think that the sales results of Dai-ichi Life have been favorably developing. For new business A and B, it declined, especially the huge decline in Tao. That is because of the elimination of impact of large group mandate of last year. Please go to the next page. ESR. ESR is 204%. Qualified capital was flat, but the required capital increased because of the increase of the mass lapse risk. ESR declined. Even considering the future investments, we expect that the capital adequacy can be maintained. This concludes my explanation.