Japan Post Holdings saw a 4.8% drop in group revenue in the period of April to September, to ¥5.96 trillion (around US$54 billion).
Its consolidated net profit however, saw a 5.8% rise to ¥236.5 billion (around US$2 billion).
The decrease in group revenue is attributed to Japan Post’s suspension of its own and third-party life insurance products since July – an action the firm took on due to the scandals surrounding its sales misconduct.
Japan Post’s new insurance contracts fell by 30,000 to 580,000 in the first half of the business year, meaning the number of new deals dropped by 10%. Noboru Ichikura, senior managing executive of Japan Post, has talked about a “sense of crisis” about a lack of new contracts, according to the Japan Times.
The firm is targeting a January 2020 date to resume product sales.
Japan Post has been hit by a series of scandals – in July, it admitted to conducting inappropriate sales of around 183,000 policies and leaving customers at a disadvantage over the past five years. In August, it was revealed that the firm improperly sold 104,000 policies issued by US partner Aflac, resulted in customers becoming temporarily uninsured and or being double charged for a one-year period.
The firm set aside ¥3.5 billion (US$32 million) for investigations surrounding the scandal-linked policies.
Under the group, Japan Post Insurance saw a 6.1% revenue decline due to the sales misconduct, but an 11% increase in net profit from asset investment returns and less sales commission fees paid to the postal unit.
For more on Japan Post’s sales misconduct, click here. 

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