Life Insurance Fact Book (2017)

Transcription

1 Life Insurance Fact Book (217) The Life Insurance Association of Japan

2 Introduction The Life Insurance Fact Book summarizes key performance indicators of life insurance companies operating in Japan. We hope that this report will provide a better understanding of the life insurance business in Japan. Please note that the data of Japan Post Insurance has been included in the figures since fiscal 28; therefore, some figures show the data excluding Japan Post Insurance in order to maintain continuity with the previous data before its inclusion. The data of Japan Post Insurance is not included in figures for fiscal 27 and 28 for the purpose of counting years (e.g. for the Xth successive years or for the first time in X years ). In addition to this report, the LIAJ provides detailed statistical data of the life insurance market in Japan; please refer to such data as necessary. *The LIAJ is not responsible for any losses that may occur through the use of the information contained in this CD-ROM.

3 Contents Highlights of Business Results 1 I Underwriting Results 3 1. Insurance Products for Individual 3 (1) Individual Insurance 3 (2) Individual Annuity Insurance 6 (3) Annualized Premium 8 (4) Hospitalization and Surgery Protection 9 (5) Statistical Data by Gender, Age and Prefecture 1 2. Insurance Products for Groups 15 (1) Group Insurance 15 (2) Group Annuity Insurance 17 II Profit and Loss Insurance Related Profit and Loss 19 (1) Premium Income 19 (2) Insurance Benefits Paid 2 2. Investment Income and Expenses Operating Expenses Ordinary Profits and Basic Profits 24 III Investment Results Total Assets Securities Loans Tangible Fixed Assets (Real Estate) 29 IV Liabilities and Net Assets 29 Reference 3 Distribution Channels and Sales Force 3 Member Companies 31

4 Highlights of Business Results As of the end of fiscal 216, the amount of policies in force (the amount of coverage for major protections such as death protection) for individual insurance was 862,95 billion yen (1.5% y/y) and increased from the previous year for the second successive year. The number of policies in force as of the end of fiscal 216 was million, increasing for the ninth successive year. Though the amount of new policies (including converted contracts) decreased from the previous year to 68,478 billion yen (98.8% y/y),decrease in lapses and surrenders owing to insurers efforts over the past years to maintain existing policies lead to the increase in policies in force. As to the type of new policies for individual policies in terms of amount (excluding converted contracts), suspension of savingstype products due to the lower domestic interest rates and consequent lower assumed interest rates for single-premium products resulted in the decreased sale particularly for whole life insurance from the previous year. Meanwhile, the sales of term insurance, which is largely protection-based, increased from the previous year to 35,977 billion yen (112.8% - The Trend of Individual Insurance Policies (trillion yen) Whole Life Insurance (Total) Term Insurance Endowment Insurance Amount of new policies (fiscal 215) Amount of new policies (fiscal 216) Note: "Whole Life Insurance (Total)" includes whole life insurance, whole life with term rider and whole life with variable accumulation rate Variable Insurance y/y). (See: pages 3 to 5) y/y) As to the annualized premium (the amount of premium income which a life insurer would receive in one year, under the assumption that premium is equally divided and paid throughout the entire contract period) of policies in force, it amounted to 27.4 trillion yen (including 6.2 trillion yen for "third-sector") at the end of fiscal 216, increasing steadily since fiscal 26 when the record started. With small amount insurance products of policies increasing such as medical insurance, annualized premium is referred to as an additional indicator that supports the amount of policies.(see: page 8) (trillion yen) 3. Annualized Premium of Policies in Force "Third-Sector" (trillion yen) Amount of Policies in Force (million) 1, Number of Policies in Force Note: Including individual annuity insurance Note: The amount of annualized premium of "third-sector" includes the amount of premium to be allocated for paying medical coverage (e.g. benefits for hospitalization/surgery), living benefits (e.g. benefits for specified disease/long-term care), and premium waiver benefits (e.g. benefits due to specified disease or long-term care, but excluding disability). 1

5 - Major Business Results - The amount 1 and the ratio 2 of lapses and surrenders for individual insurance has been decreasing. (See: pages 3 and 5) 6.6% 6.2% 6.1% 5.9% Ratio of lapses and surrenders 5.6% 56,927 billion yen 53,676 billion yen 52,471 billion yen 5,296 billion yen Amount of lapses and surrenders 48,415 billion yen The amount of new policies for individual annuity insurance increased significantly. (See: page 6) 8,563 billion yen 8,3 billion yen 8,632 billion yen 8,326 billion yen 11,64 billion yen Total assets was the highest ever. (See: page 25) 344,998 billion yen 35,582 billion yen 367,255 billion yen 367,167 billion yen 375,55 billion yen 1 Amount of lapses and surrenders = ( lapses + surrenders + total of decrease in amount of a policy) - (reinstatements + total of increase in amount of a policy) 2 Ratio of lapses and surrenders = ( amount of lapses and surrenders / amount of policies in force at the beginning of fiscal year )* 1% 2

6 I Underwriting Results 1. Insurance Products for Individual 3 (1) Individual Insurance New Policies The number of new policies for individual insurance (including converted contracts) was 19.3 million (97.1% y/y), and the new policies amount 4 (reflecting the net increase arising from the conversion) was 68,478billion yen (98.8% y/y). [Figure 1] Both the number and the amount of new policies decreased from the previous year in fiscal 216 notwithstanding the increase trend over the several years supported by increased sales of medical insurance and whole life insurance. This turn-around reflects the negative developments such as suspended sales of single premium payment products due to the reduction in the standard assumed interest rate for such products following the further downward shift of the yield in the domestic investment market. By type of new policies for individual insurance (excluding converted contracts), medical insurance ranked top in number (3.55 million, 22.8% of the total), followed by whole life insurance (3.51 million, 22.5%), term insurance (2.16 million, 13.9%), cancer insurance (28 million, 13.4%), and endowment insurance (1.38 million, 8.9%), with the ranks switched between term insurance and cancer insurance from the previous year. [Figure 2] Of the total amount of new policies for individual insurance (excluding converted contracts), term insurance ranked top (35,977 billion yen, 48.9% of the total), followed by whole life insurance (14,377 billion yen, 19.5%), endowment insurance (5,194 billion yen, 7.1%), Juvenile insurance(1,781billion, 2.4%), variable insurance (1,558 billion, 2.1%), with Juvenile insurance moving up in the ranking. [Figure 3] Policies in Force The number of policies in force for individual insurance was million (14.8% y/y), and the amount of policies in force was 862,95 billion yen (1.5% y/y). [Figure 1] The number of policies in force increased for the ninth successive year. Despite the fact that the insured amount of policies in force had been decreasing due to the current trend of increasing medical protection while reducing death protection, it increased for the second successive year. As for the number of policies in force for individual insurance, whole life insurance ranked top (36.59 million, 21.8% of the total), followed by medical insurance (35.29 million, 21.%), cancer insurance (23.9 million, 14.3%), term insurance (21.19 million, 12.6%), endowment insurance (13.89 million, 8.3%) and whole life insurance with term rider (9.85 million, 5.9%). [Figure 4] Of the total amount of policies in force for individual insurance, term insurance ranked top (268,94 billion yen, 31.2% of the total), followed by whole life insurance(176,659 billion yen, 2.5%), whole life insurance with term rider (12,368 billion yen, 13.9%), whole life insurance with variable accumulation rate (69,593 billion yen, 8.1%) and endowment insurance (45,47 billion yen, 5.3%). [Figure 5] Lapses and Surrenders The amount 5 and the ratio 6 of lapses and surrenders for individual insurance were 48,415 billion yen (96.3% y/y) and 5.6% (down by.3 points from the previous year). [Figure 6] The amount and the ratio of lapses and surrenders decreased for the fifteenth successive year and eighth successive year, respectively. 3 The business result of individual insurance and individual annuity insurance includes those policies under which policyholder is a corporate body and the insured is a member of the management (so-called "key person insurance"). 4 The amount of major protections such as a death protection. 5 Amount of lapses and surrenders = ( lapses + surrenders + total of decrease in amount of a policy) - (reinstatements + total of increase in amount of a policy) 6 Ratio of lapses and surrenders = ( amount of lapses and surrenders / amount of policies in force at the beginning of fiscal year )* 1% 3

7 Figure 1: New Policies and Policies in Force for Individual Insurance (Number: million, Amount: billion yen Y/Y: %) New Policies Policies in Force Number Amount Number Amount Y/Y Y/Y Y/Y Y/Y , , , , , , , , , , Below are figures excluding Japan Post Insurance , , , , , , , , , , Note: The number includes converted contracts, and amount reflects the net increase arising from the conversion. (million) Figure 2: Changes in Individual Insurance by Type (Number of New Policies) Others Jevenile Insurance Cancer Insurance Medical Life Insurance Endowment Insurance Figure 3: Changes in Individual Insurance by Type (Amount of New Policies) 3.55 Variable Insurance Term Insurance Whole Life with Variable Accumulation Rate Whole Life with Term Rider Whole Life Insurance Note: Excluding converted contracts (trillion yen) Others Jevenile Insurance Cancer Insurance Medical Insurance Endowment Insurance Variable Insurance Term Insurance Whole Life with Variable Accumulation Rate Whole Life with Term Rider Whole Life Insurance 4

8 Figure 4: Changes in Individual Insurance by Type (Number of Policies in Force) (million) Others Jevenile Insurance Cancer Insurance Medical Insurance Endowment Insurance Variable Insurance Term Insurance Whole Life with Variable Accumulation Rate Whole Life with Term Rider While Life Insurance. 1, Figure 5: Changes in Individual Insurance by Type (Amount of Policies in Force) (trillion yen) Others Jevenile Insurance Cancer Insurance Medical Insurance Endowment Insurance Variable Insurance Term Insurance Whole Life with Variable Accumulation Rate Whole Life with Term Rider Figure 6: Changes in Amount and Ratio of Lapses and Surrenders of Individual Insurance (billion yen) 1, 8, (%) , 4. 4, 2, 56,927 53,676 52,471 5,296 48,

9 (2) Individual Annuity Insurance New Policies The number and the amount 7 of new policies for individual annuity insurance were 2.8 million (135.7% y/y) (including the net increase arising from the conversion) and trillion yen (132..9% y/y) (reflecting the net increase arising from the conversion), increasing both in number and in amount from the previous year. [Figure 7] Of all the new policies for individual annuity insurance (excluding converted contracts), the number of fixed individual annuity insurance was 1.93 million (93.3% of the total) and that of variable individual annuity insurance was.13 million (6.7%) in fiscal 215,with fixed individual annuity insurance increasing for the first time in four years[figure 8] Of all the new policies for individual annuity insurance (excluding converted contracts), the amount of fixed individual annuity insurance was 1,336 billion yen (93.2% of the total) and that of variable individual annuity insurance was 757 billion yen (6.8%). [Figure 9] Policies in Force The number and the amount 8 of policies in force for individual annuity insurance as of fiscal 216 were million (14.8% y/y) and 17,872 billion yen (14.1% y/y). [Figure 7] The number of policies in force turned upward in fiscal 23 due to the lifting of restrictions on sales of bancassurance. It increased from the previous year for the fourteenth successive year and has been setting new highs every year from fiscal 26 to 215; however, the amount decreased from the previous year for the first time in 13 years in fiscal 216. As for the number of policies in force for individual annuity insurance, that of fixed individual annuity insurance was million (89.7% of the total) and that of variable individual annuity insurance was 2.23 million (1.3%). [Figure 1] Of all the amount of policies in force for individual annuity insurance, fixed individual annuity insurance accounted for 95,175 billion yen (88.2% of the total) and variable individual annuity insurance for 12,697 billion yen (11.8%). [Figure 11] Lapses and Surrenders The amount 9 and the ratio 1 of lapses and surrenders for individual insurance were 2,593 billion yen (71.3% y/y) and 3.% (down by 1.1 points from the previous year). [Figure 12] Figure 7: New Policies in Force for Individual Annuity Insurance (Number:million, Amount:billion yen, Y/Y:%) New Policies Policies in Force Number Amount Number Amount Y/Y Y/Y Y/Y Y/Y , , , , , , , , , , Below are figures excluding Japan Post Insurance , , , , , , , , , , Note: The number includes converted contracts, and the amount reflects the net increase arising from conversion. 7 The amount of the annuity reserve (the total annuity amount that will be paid in the future, after being converted to the value at the time of start of annuity payment). 8 The amount is the annuity reserve (the total annuity amount that will be paid in the future, after converted to the value at the time of the start of annuity payment) as to the contracts before the start of annuity payment, and the amount of policy reserves (reserves accumulated for future payments) as to the contracts after the start of annuity payment. 9 Amount of lapses and surrenders = ( lapses + surrenders + total of decrease in amount of a policy) - (reinstatements + total of increase in amount of a policy). Note that this includes only the contracts before the start of annuity payment, and the contracts after the start of annuity payment are excluded. 1 Ratio of lapses and surrenders = ( amount of lapses and surrenders / amount of policies in force at the beginning of fiscal year (only includes the contracts before the start of annuity payment) )* 1% 6

10 Figure 8: Changes in Individual Annuity Insurance by Type (Number of New Policies) (million) Fixed Annuity Variable Annuity Figure 9: Changes in Individual Annuity Insurance by Type (Amount of New Policies) (billion yen) 12, 1, 8, 8, , ,655 8,354 1,653 1,39 11, , 4, 8,23 7,54 7,1 6,964 1,336 2, Fixed Annuity Variable Annuity Note: Excluding converted contracts Figure 1: Changes in Individual Annuity Insurance by Type (Number of Policies in Force) (million) Fixed Annuity Variable Annuity Note: Excluding converted contracts 7

11 Figure 11: Changes in Individual Annuity Insurance by Type (Amount of Policies in Force) (billion yen ) 12, 1, 8, 6, 4, 13,518 13,788 14,131 13,595 17,872 19,111 17,273 16,78 13,919 12,697 84,46 86,514 88,52 89,675 95,175 2, Fixed Annuity Variable Annuity Figure 12: Changes in Amount and Ratio of Lapses and Surrenders of Individual Annuity Insurance (billion yen) 6, (%) 6. 5, 4, 3, 2, 1, 3.7 3,268 4,939 4, , , (3) Annualized Premium The total amount of annualized premium on new policies for individual insurance was 2,415 billion yen (1.5% y/y), while that for individual annuity insurance was 889 billion yen (97.3% y/y) in fiscal 216. The amount of annualized premium for individual insurance increased for the third successive year while that for individual annuity insurance decreased for the first time in the three years.[figure 13] The amount of annualized premium on policies in force for individual insurance was 2,777 billion yen (15.6% y/y), while that for individual annuity insurance was 6,75 billion yen (12.9% y/y). The amount of annualized premium on policies in force for individual insurance has been increasing for eight years, and that for individual annuity insurance increased for the first time in four years. With regard to third-sector products, the amount of new policies was 673 billion yen (19.3% y/y) and that of policies in force was 6,228 billion yen (14.9% y/y). The amount of new policies increased for the fourth successive year and that of policies in force has been increasing consistently. What is annualized premium? Given the increase in the sales of medical, cancer and long-term care insurance policies and individual annuity plans, which have little or no death protection, it is sometimes inappropriate to judge the business result solely by focusing on the amount of policies (i.e. total amount of death protection as to individual insurance). Annualized premium is increasingly used as the complementary indicator. There are various options for paying premiums for customers, including monthly payment, annual payment and lump-sum payment at the time of concluding the contract. Also, payments can be made either throughout the entire contract period or during a certain period. Annualized premium is calculated by adjusting these differences in payment options under the assumption that premium is equally divided and paid throughout the entire contract period, and indicates the average amount of premium income which a life insurer would receive in one year. Example: Case of lump-sum premium payment (contract period: 5 years, total premium: 1 million yen) Premium Income: 1 million yen Annualized Premium: 2 thousand yen (1 million yen divided by 5 years) 8

12 Figure 13: Changes in Annualized Premium New Policies Policies in Force (billion yen) (billion yen) Individual Individual Individual Individual Total Total Insurance Annuity "Third-Sector" Insurance Annuity "Third Sector" 212 2, , ,884 6,968 23,853 5, , , ,694 6,752 24,447 5, , , ,645 6,577 25,222 5, , , ,676 6,518 26,195 5, , , ,777 6,75 27,483 6,228 Below are figures excluding Japan Post Insurance Below are figures excluding Japan Post Insurance 212 1, , ,29 6,31 21,33 5, , , ,51 6,91 21,593 5, , , ,118 5,93 22,22 5, , , ,813 5,862 22,675 5, , , ,569 6,136 23,75 5,894 Note: The amount of annualized premium of "third-sector" includes the amount of premium to be allocated for paying medical coverage (e.g. benefits for hospitalization/surgery), living benefits (e.g. benefits for specified disease/long-term care), and premium waiver benefits (e.g. benefits due to specified disease or long-term care, but excluding disability). (Billion Yen) 3, 25, 2, 15, 1, Figure 14: Change in Annualized Premium of Policies in Force 23,853 24,447 25,222 26,195 27,483 5, 5,384 5,538 5,74 5,937 6,228 Annualized Premiumo f Policies Holders Third-Sector (4) Hospitalization and Surgery Protection Of all the products for individual, the number of policies in force of medical insurance which provides protection against hospitalization/surgery as a base policy was million (14.7% y/y), and that of cancer insurance was 23.9 million (13.3% y/y), increasing continuously. [Figure 15] Figure 15: Changes in Medical and Cancer Insurance (Number of Policies in Force) (million) To provide medical protection, there are also other types of insurance policies which are served with medical riders. With respect to insurance policies with hospitalization and surgery coverage (the sum of riders and stand-alone medical insurance policies among individual life insurance and individual annuity insurance), the number of policies with accidental hospitalization riders in force was million (12.1% Medical Insurance Cancer Insurance

13 y/y), those with sickness hospitalization riders in force was million (12.4% y/y), and those with surgical benefit riders in force was million (13.% y/y). [Figure 16] Figure 16: Changes in Medical Insurance for Hospitalization and Surgery (Number of Policies in Force) (million) Hospitalization due to unforseen accidents Hospitalization due to sickness Surgery Note: Figures are the total of the numbers of protection under individual insurance policies and individual annuity contracts in force, both as a base policy and as a rider. Products with more than one protections are counted in each protection. (5) Statistical Data by Gender, Age and Prefecture 11 By Gender Comparing the number of new policies for individual insurance (excluding converted contracts) by gender of the insured, the ratio of females has been increasing recently to exceed that of males. In fiscal 216, the ratio of males was slightly higher than that of the previous year. The ratio of females was 5.2%, slightly exceeding that of men at 49.8%, though the gap was narrowed. [Figure 17] Comparing the number of new policies for individual insurance between each type of insurance product by gender of the insured in fiscal 216, "others" including cancer insurance and medical insurance ranked top (more than 5% of the total) for male and female, followed by whole life insurance, term insurance and endowment insurance. [Figure 18] Comparing the number of new policies for individual annuity insurance by gender of the insured, the ratio of females has been higher than that of males so far, although the ratio of males has started to rise recently. In fiscal 216, the ratios of males and females were 45.7% and 54.3%, respectively. [Figure 19] Figure 17: Changes in Composition Ratio of Individual Insurance by Gender (Number of New Policies) % 1% 2% 3% 4% 5% 6% 7% 8% 9% 1% Male Female Figure 18: Composition Ratio of Individual Insurance by Type in FY216 (Number of New Policies by Gender) 11 Statistical data by gender, age and prefecture is based on the classification of the insured. 1

14 Male Female % 1% 2% 3% 4% 5% 6% 7% 8% 9% 1% Whole Life Insurance Term Insurance Endowment Insurance Others Figure 19: Changes in Composition Ratio of Individual Annuity by Gender (Number of New Policies) % 1% 2% 3% 4% 5% 6% 7% 8% 9% 1% Male Female 11

15 By Age Comparing the number of new policies for individual insurance (excluding converted contracts) by age group of the insured, the ratio of those in their 4s has been on a rising trend, and the ratio of those in their 2s and 3s on a decreasing trend. In fiscal 216, the ratio of those in their 2s to 4s has increased, resulting in a smaller ratio of those aged 5s and over 5s. [Figure 2] Also, comparing the number of new policies for individual insurance between each type of insurance product by age group of the insured, the ratio of "others" (including medical insurance, juvenile insurance, etc.) was the highest in those under 2, reaching 71.5%. Among those in their 2s to 6s, the ratio of "others" ranked top at approximately 5%, followed by whole life insurance. [Figure 21] Comparing the number of new policies for individual annuity insurance by age group of the insured, the ratio of those under 4s increased in fiscal 216. [Figure 22] Figure 2: Changes in Composition Ratio of Individual Insurance by Age (Number of New Policies) % 1% 2% 3% 4% 5% 6% 7% 8% 9% 1% Under 2 2s 3s 4s 5s 6 or older Figure 21: Composition Ratio of Individual Insurance by Type in FY216 (Number of New Policies by Age) Under 2s s s s s s or older % 1% 2% 3% 4% 5% 6% 7% 8% 9% 1% Whole Life(including Whole Life with term rider) Term Insurance Endowment Insurance Others Figure 22: Changes in Composition Ratio of Individual Annuity by Age (Number of New Policies) % 1% 2% 3% 4% 5% 6% 7% 8% 9% 1% Under 2 2s 3s 4s 5s 6s or older 12

16 By Prefecture Regarding the details of individual insurance by each prefecture, Figure 23 provides the details of new policies (excluding converted contracts), and Figure 24 provides details of policies in force. Figure 23: New Policies for Individual Insurance by Prefecture(FY216) Individual Insurance Amount per policy 2.The figures are now policies excluding converted contracts. 3 the population does not include non-japanese residents. 13 Policies per household Amount per household Prefecture Numver Amount Population Household ten thousand (billion yen) (thousand yen) (Number) (thousand yen)(ten thousand)(ten thousand) Hokkaido 67 2,53 3, Aomori , , Iwate , , Miyagi 3 1,353 4, , Akita , , Yamagata , , Fukushima 23 1,94 4, , Ibaraki 3 1,331 4, , Tochigi 23 1,128 4, , Gunma 21 1,87 4, , Saitama 76 3,7 4, , Chiba 67 3,123 4, , Tokyo 2 1,596 5, ,577 1, Kanagawa 97 4,796 4, , Niigata 25 1,227 4, , Toyama , , Ishikawa , , Fukui , , Yamanashi , , Nagano 22 1,55 4, , Gifu 23 1,157 4, , Shizuoka 47 2,159 4, , Aichi 88 4,699 5, , Mie 22 1,13 4, , Shiga , , Kyoto 3 1,437 4, , Osaka 111 5,799 5, , Hyogo 61 3,25 4, , Nara , , Wakayama , , Tottori , , Shimane , , Okayama 23 1,15 4, , Hiroshima 35 1,71 4, , Yamaguchi , , Tokushima , , Kagawa , , Ehime , , Kochi ,3.26 1, Fukuoka 68 3,169 4, , Saga , , Nagasaki 18 1,51 4, , Kumamoto 24 1,123 4, , Oita , , Miyazaki , , Kagoshima , , Okinawa , Total 1,559 73,67 4, ,39 12,558 5,622 * 1.Population and number of households are based on"population, Demography, and Number of House holds based on the Basic Resident Registers(as of 1 January 216)" of the Ministry of Internal Affairs and Communications.

17 Figure 24: Policies in Force for Individual Insurance by Prefecture (As of the End of FY216) Individual Insurance Amount per Policies per Amount per Prefecture Number Amount policy household household (ten thousand) (billion yen) (thousand yen) (Number) (thousand yen) Hokkaido 71 29,16 4, ,632 Aomori 162 8,35 4, ,684 Iwate 154 7,561 4, ,552 Miyagi ,194 4, ,77 Akita 125 5,786 4, ,642 Yamagata 165 8,18 4, ,59 Fukushima ,811 5, ,57 Ibaraki ,613 4, ,95 Tochigi 27 14,788 5, ,59 Gunma ,648 5, ,95 Saitama ,47 5, ,794 Chiba 779 4,213 5, ,64 Tokyo 1,923 19,664 5, ,323 Kanagawa 1,132 59,53 5, ,341 Niigata ,45 5, ,172 Toyama 167 8,93 5, ,958 Ishikawa 172 8,988 5, ,11 Fukui 127 6,973 5, ,648 Yamanashi 111 5,837 5, ,75 Nagano ,739 5, ,233 Gifu ,89 5, ,953 Shizuoka ,648 5, ,524 Aichi ,57 5, ,555 Mie ,166 5, ,16 Shiga 181 9,427 5, ,49 Kyoto 33 16,89 5, ,428 Osaka 1,175 64,377 5, ,677 Hyogo 69 35,368 5, ,43 Nara 169 8,78 5, ,978 Wakayama 132 6,371 4, ,581 Tottori 87 4,368 4, ,732 Shimane 89 4,359 4, ,31 Okayama 26 13,58 5, ,462 Hiroshima 38 19,44 5, ,971 Yamaguchi 188 8,71 4, ,372 Tokushima 113 5,6 4, ,942 Kagawa 139 7,586 5, ,689 Ehime 179 8,975 5, ,944 Kochi 11 4,797 4, ,699 Fukuoka 75 33,828 4, ,522 Saga 119 5,847 4, ,19 Nagasaki 192 8,976 4, ,327 Kumamoto ,5 4, ,68 Oita 162 7,184 4, ,671 Miyazaki 142 6,11 4, ,598 Kagoshima 219 9,54 4, ,889 Okinawa 121 5,51 4, ,799 Total 16, ,95 5, ,348 Note: Population and number of households are based on "Population, Demography and Number of Households Based on the Basic Resident Registers(as of January 216)" of the Ministry of Internal affairs and Communications. 14

18 2. Insurance Products for Groups (1) Group Insurance New Policies The aggregated number of the newly insured (the number after resolving double counting of insured of coinsurance undertaken by multiple insurers) and the amount of new policies for group insurance were.43 million (93.5% y/y) and 3,3 billion yen (78.2% y/y). [Figures 25 and 28] Looking at the aggregated number of the newly insured, new policies for group insurance had been declining since some policies of the group term insurance existing at that time were switched to general welfare group term insurance in fiscal However, it has remained on the same level since fiscal 26. Of all the new policies, the amount of general welfare group term insurance ranked top (1,426 billion yen, 47.1% of the total), followed by group credit life insurance (965 billion yen, 31.8%) and group term insurance (639 billion yen, 21.1%). [Figure 26] Policies in Force The number of the insured (aggregated) and the amount of policies in force were million (1.3% y/y) and 379,279 billion yen (11.1% y/y). [Figures 25 and 29] Of all the policies in force, the amount of group credit life insurance ranked top (18,41 billion yen, 47.6% of the total), followed by group term insurance (19,48 billion yen, 28.8%) and general welfare group term insurance (88,882 billion yen, 23.4%). [Figure 27] Lapses and Surrenders The amount of lapses and surrenders of group insurance 12 decreased from the previous year to 7,372 billion yen (89.9% y/y), and the ratio of lapses and surrenders 13 also decreased to 2. (down by.2 points from the previous year). [Figure 3] [Major Types of Group Insurance] Group Term Insurance: A kind of voluntary insurance product companies introduce for the purpose of welfare for its members, under which the applicants become insured and pay insurance premium. General Welfare Group Term Insurance: A kind of term insurance companies requires its all members to subscribe mandatorily in principle for the purpose of providing life security to the surviving relatives of the member. Contracts are renewed every year and the companies pay the premium. Group Credit Life Insurance: A kind of insurance used for the conservation of loans such as housing loans, under which a debtor of the loan becomes the insured and credit providers (e.g. banks) or credit guarantee institutions become policyholders and beneficiaries. Under group credit life insurance, in case the debtor dies or become affected by prescribed state of disabilities, benefits equivalent to the amount of unpaid debts will be paid to the policyholder to clear the debt. Figure 25: New Policies and Policies in Force for Group Insurance New Policies and Poliicies in force (Number:million, Amount:billion yen,y/y:%) New Policies Policies in force Aggregated Number of Insured Amount Aggregate Number of Insured Amount Y/Y Y/Y Y/Y Y/Y , , , , , , , , , , Amount of lapses and surrenders = ( lapses + surrenders + total of decrease in amount of a policy) - (reinstatements + total of increase in amount of a policy) 13 Ratio of lapses and surrenders = ( amount of lapses and surrenders / amount of policies in force at the beginning of fiscal year )* 1% 15

19 Figure 26: Breakdown of Group Insurance in FY216 (Amount of New Policies) Figure 27: Breakdown of Group Insurance in FY216 (Amount of Policies in Force) Figure 28: Changes in Group Insurance (Number/Amount of New Policies) (billion yen) 6, 5,.7 Amount Aggregated Number of Insured (million) , , , 3,41 4,479 3,6 3,873 3, ,.1 16

20 Figure 29: Changes in Group Insurance (Number/Amount of Policies in Force) (billion yen) 38, 375, Amount Aggregated Number of Insured (million) , 365, , 355, 37, , , , , , 38 Figure 3: Changes in Lapses and Surrenders of Group Insurance (Amount/Ratio of Lapses and Surrenders) (billion yen) 16, 14, 12, 1, 8, 6, 4, 2, ,646 9,129 6,991 8,24 7,372 (%) (2) Group Annuity Insurance The amount of policies in force for group annuity insurance (the amount of policy reserves) increased from the previous year for the sixth successive year since fiscal 211 to 34,16 billion yen, a gain six years in a row (11.2% y/y). [Figures 31 and 32] Looking at the asset of corporate pensions of defined benefit type, which are the key products, while the assets of defined benefit corporate pensions increased in fiscal 216 from the previous year to 15,62billion yen (14,788 billion yen in fiscal 215), the assets of employees' pension funds decreased to 1,147 billion yen (1,461 billion yen in fiscal 215). [Figure 33] Figure 31: New Policies and Policies in Force for Group Annuity Insurance (Number:million, Amount:billion yen,y/y:%) New Policies Policies Aggregated Number of Insured Amount Aggregated Number of Insured Amount Y/Y Y/Y Y/Y Y/Y , , , , , , , Note: Double counting of the number of insured under coinsurancce undertaken by multiple insurers has been resolved 17

21 Figure 32: Changes in Policies in Fore for Group Annuity Insurance (Amount) (billion yen) 4, 3, 31,815 32,742 33,355 33,714 34,16 2, 1, (billion yen) 16, 14, 12, 1, 8, 6, Figure 33: Changes in Asset Balance of Employees' Pension Funds and Defined Benefit Corporate Pensions 12,17 13,45 13,922 14,788 15,62 4, 2, 2,373 2,341 1,997 1,461 1,147 Employee's Pension funds Defined Benefit Corporate Pensions 18

22 II Profit and Loss 1. Insurance Related Profit and Loss (1) Premium Income The total amount of gross annual premium income was 33,459 billion yen (88.6% y/y) in Fiscal 216. Though Gross annual premium income had trended upward in recent years, it decreased for the first time in three years in fiscal 216, affected by the suspension of the sales of single-premium products due to the reduce in the assumed interest rates. [Figure 34] As for results by type of business, individual insurance (23,611billion yen, 92.2% y/y), individual annuity insurance (4,34 billion yen, 91.8% y/y), group insurance (1,134 billion yen, 1.9% y/y), and group annuity insurance (3,57 billion yen, 67.% y/y). [Figure 35] By method of premium payments for individual insurance, monthly payment ranked top (52.9% of the total), followed by annual payment (21.4%), single-premium payment (16.2%) and monthly payment through payroll deduction (9.1%). The shares of single-premium payment and annual payment have significantly decreased from the previous year in fiscal 216. [Figure 36] Figure 34: Changes in Profit and Loss Income Expenses (billion yen) Ordinary Revenue s Premium Incomes and Others Premium Income Investmen t Income Interest and Dividend Others Ordinary Expense s Insuranc e benefits paid Provision for Policy Reserves Investme nt Expenses Operatin g Expense s ,83 38,69 37,14 11,835 6,475 4,899 52,239 31,685 12,881 1,734 4,349 1,588 2, ,215 35,784 34,738 11,326 6,877 6,15 5,113 33,778 9,18 1,345 4,389 1,491 3, ,959 38,681 37,222 12,31 7,85 4,966 52,449 34,952 1,41 1,325 4,499 1,63 3, ,35 38,962 37,748 8,291 7,111 5,51 49,537 32,454 8,361 2,473 4,76 1,541 2, ,76 35,182 33,459 9,78 7,23 3,499 45,97 29,14 8,155 1,777 4,726 1,423 2,662 Below are figures excluding Japan Post Insurance ,968 31,587 3,658 1,274 4,975 1,16 4,933 21,12 12,872 1,75 3,836 1,57 2, ,981 29,872 28,826 9,785 5,419 2,323 39,343 23,617 9,13 1,327 3,876 1,418 2, ,79 32,724 31,267 1,85 5,72 2,215 42,773 25,892 1,4 1,314 3,986 1,538 3, ,7 33,548 32,338 6,936 5,82 2,214 4,344 23,93 8,361 2,463 4,169 1,446 2, ,11 3,141 28,424 7,71 5,797 1,25 36,717 21,463 8,155 1,617 4,166 1,314 2,383 Other s Ordinary Profit (billion yen) Figure 35: Changes in Premium Income by Type 4, 35, 3, 25, 37,14 3,874 3,683 1,19 4,374 34,738 2,739 3,851 1,112 4,312 37,222 37,748 2,226 1,723 4,175 4,562 1,119 1,124 5,154 4,729 33,459 1,314 3,57 1,134 4,34 2, 15, 1, 24,99 22,721 24,546 25,67 23,611 5, Individual Insurance Individual Annuity Insurance Group Insurance Group Annuity Insurance Others(Reinsurance Premium, etc.) 19

23 Figure 36: Changes in Composition Ratio of Premium Income for Individual Insurance by Premium Payment Methods (2) Insurance Benefits Paid The total amount paid by all life insurers under life insurance contracts in fiscal 215 was 29,14 billion yen (89.4% y/y). Of all the amount of insurance benefits paid, claims paid amounted to 11,53 billion yen (91.2% y/y), annuities paid amounted to 4,843 billion yen (99.7% y/y), benefits (other than claims paid and annuities paid) amounted to 3,94 billion yen (95.3% y/y), surrender benefits paid amounted to 5,768 billion yen (77.3% y/y), refunds to policyholders amounted to 1,125 billion yen (59.5% y/y) and reinsurance premiums 14 amounted to 2,318 billion yen (114.7% y/y). The amount of claims paid declined for the ninth successive year since fiscal 28 due to the decrease in the number of existing postal life insurance policies. While the amount of annuities paid had been increasing consistently until fiscal 214, in fiscal 216, it decreased again from the previous year for the second successive year. The amount of benefits has decreased for the first time in five years. [Figure 37] Figure 37: Changes in Insurance Benefits Paid (billion yen) Claims Paid Annuities Paid Benefits Surrendered Refunds to Reinsurance Benefit Policyholders Premiums Total ,296 3,36 3,936 5,867 1,36 2,188 31, ,37 4,499 4,53 7,999 1,136 1,78 33, ,971 5,196 4,66 8,772 1,817 2,129 34, ,124 4,859 4,96 7,459 1,89 2,22 32, ,53 4,843 3,94 5,768 1,125 2,318 29,14 Below are figures excluding Japan Post Insurance 212 5,17 3,163 3,91 5, ,188 21, ,796 4,242 4,19 7,779 1, 1,778 23, ,717 4,892 4,24 8,48 1,654 2,122 25, ,547 4,518 4,47 7,8 1,697 2,11 23, ,565 4,471 3,847 5, ,33 21,463 Note: Revenues and expenditures relating to the postal life insurance contracts issued by the former Japan Post (until 27) is reflected on the revenues and expenditures of the Japan Post Insurance, through underwriting reinsurance from the Management Organization for Postal Savings and Postal Life Insurance that succeeds the contracts. Also, amounts equivalent to the insurance benefits paid (including annuities) relating to the postal life insurance is included in the "claims paid" of the Japan Post Insurance. 14 Premiums that life insurers pay to reinsurers. Reinsurance is an insurance contract that life insurers concludes with underwriting companies for reinsurance for the purpose of spreading risks regarding the amount of the benefit to be paid under the insurance contracts the insurer has underwritten. 2

24 Of all the claims paid, the number and the amount of death benefits were 1.2 million (11.5% y/y) and 2,89 billion yen (12.3% y/y), and the number and the amount of matured insurance policies were.65 million (95.2% y/y) and 1,46billion yen (97.54% y/y). [Figure 38] Figure 38: Changes in Number and Amount of Death/Maturity Benefit Payments Of all the benefits paid, the number and the amount of hospitalization benefits increased to 6.66 million (12.9% y/y) and 693 billion yen (11.% y/y), and also those of surgery benefits increased to 3.96 million (14.6% y/y) and 412 billion yen (13.% y/y). [Figure 39] Figure 39: Changes in Number and Amount of Hospitalization and Surgery Benefits 21

25 2. Investment Income and Expenses Investment income in fiscal 216 was 9,78 billion yen (19.5% y/y). Of all the investment income, while interest and dividends slightly decreased from the previous year to 7,23 billion yen (98.8% y/y), gain on sales of investment securities significantly increased to 1,77 billion yen(162.7%), and others (including profits on asset management of special accounts) increased to 897 billion yen (174.8% y/y). Profits on asset management of special accounts themselves amounted to 629 billion yen (16 billion yen in fiscal 215. [Figure 4] Of all the interest and dividends, the amount of interest and dividends from securities stood at 5,928 billion yen (99.7% y/y) and that of interest from loans stood at 697 billion yen (91.5% y/y). The amount of profits on sales of securities stood at 177 billion yen (162.7% y/y), and the losses on sales of securities stood at 551 billion yen (354.3% y/y). The losses on revaluation of securities stood at 71 billion yen (78.3% y/y). [Figures 4 and 41] The amount of the balance of foreign exchange profits minus foreign exchange losses stood at -111 billion yen in fiscal 216 (1,21 billion yen in fiscal 215). The investment yield on assets in general accounts was 1.96% (1.92% in fiscal 215). Of all type, the numbers in each column decreased from the previous year, namely in bonds to 1.84% (1.75% in fiscal 215), domestic stocks to 5.83% (5.17% in fiscal 215), foreign securities to 2.31% (2.24% in fiscal 215), financial loans to 1.83% (1.7% in fiscal 215), and real estate to 2.8%.(2.62% in fiscal 215) [Figure 42] Securities Figure 4: Changes in Investment Income Loans Rent of Real Estate Deposits and Others 6,475 5, ,184 3,238 11,835 <12.9> <15.3> <93.2> <97.7> <95.5> <92.5> <1448.> <43.7> <145.4> 6,877 5, , ,631 11,326 <16.2> <19.1> <94.2> <97.9> <94.> <12.1> <58.5> <81.2> <95.7> 7,85 5, ,32 1,11 3,82 12,31 <13.> <14.6> <93.5> <1.1> <14.7> <91.8> <16.1> <117.1> <18.7> 7,111 5, ,291 <1.4> <11.1> <94.2> <12.> <1.> <64.2> <.4> <16.7> <67.4> 7,23 5, , ,78 <98.8> <99.7> <91.5> <1.2> <92.8> <162.7> <1,891.7> <174.8> <19.5> Below are figures excluding Japan Post Insurance 4,975 3, ,184 3,238 1, <14.7> <17.1> <95.7> <97.7> <93.5> <95.> <1448.> <43.8> <157.9> Interest and Dividends Profit on Sales of Securities Foreign Exchange Profit Others (billion yen %) 5,419 4, , ,621 9,785 <18.9> <112.> <96.8> <97.9> <93.7> <12.3> <58.4> <8.9> <95.2> 5,72 4, ,11 3,49 1,85 <15.5> <17.3> <95.9> <1.1> <14.1> <92.2> <16.5> <116.3> <11.9> 5,82 4, ,936 <11.4> <12.> <96.9> <12.> <99.2> <68.1> <.4> <15.4> <63.9> 5,797 4, ,71 <99.9> <1.7> <93.3> <1.2> <93.8> <15.1> <1,891.7> <179.6> <111.2> Note 1: Other including income from monetary trusts, profit on financial derrivatives and gains on assets in special accounts Note 2: The figures in parentheses represent year-on-year rate. Total 22

26 Figure 41: Changes in Investment Expenses (billion yen,%) Losses on Losses on Foreign Interest paid Sales of Revaluation of Exchange Others Total Securities Securities Losses ,15 1,734 <11.8> <45.8> <93.4> <15.9> <155.8> <91.8> ,345 <113.4> <79.9> <21.7> <74.> <85.9> <77.6> ,59 1,325 <92.5> <31.8> <29.2> <491.7> <111.6> <98.5> ,26 1,131 2,473 <16.9> <189.6> <665.2> <968.1> <16.8> <186.6> ,777 <17.8> <354.3> <78.3> <18.6> <78.6> <71.9> Below are figures excluding Japan Post Insurance ,99 1, <98.8> <44.9> <93.4> <15.8> <161.4> <93.4> ,327 <112.2> <81.7> <21.7> <75.8> <86.1> <77.8> ,57 1,314 <92.9> <31.1> <29.2> <491.7> <111.8> <99.> ,25 1,128 2,463 <17.3> <199.7> <665.2> <967.7> <16.7> <187.4> ,617 <111.7> <276.9> <78.3> <18.3> <76.2> <65.7> Note 1:Others include losses from monetary trusts, financial derivatives expenses and losses on assets in special accounts Note 2: The figures in parenthese represent year-on-year rate. Figure 42: Changes in Portfolio Yields by Type of Assets (%) General Domestic Foreign Financial Bonds Real Estate Account Stocks Securities Loans Assets Below are figures exclusing Japan Post Insurance Note: Yields are calculated by dividing(investment income - investment expenses+appraisal gains under Article 112 of the Insurance Business Act ) by the average daily balance. 23

27 3. Operating Expenses The total amount of operating expenses stood at 4,726 billion yen (1.4% y/y). The ratio of premium income to total operating expenses was 13.4% (up by 1.3points from the previous year). [Figure 43] Figure 43: Changes in Operating Expenses (billion yen) (%) 6, 5, , 1. 3, 2, 4,349 4,389 4,499 4,76 4, , Ordinary Profits and Basic Profits The total amount of ordinary profits decreased for the second successive year to 2,662billion yen (96.2% y/y) due to the decrease in premium income. The total amount of basic profits, which represents the profitability of the life insurance companies for the year, increased from the previous year to 3,392 billion yen (11.8% y/y) for the first time in six years. [Figure 44] What is Basic Profit? Operating Expenses Ratio to Premium Income "Basic profit" is the indicator for the basic periodic profit/loss status of life insurers, comprised of income and expenditures for core insurance business (e.g. premium income, payments of insurance benefits and operating expenses) and income and expenditures for investment (mainly interest and dividends). The amount is calculated by deducting both "capital gains/losses" and "extraordinary gains/losses" (e.g. profits/losses on sales of securities) from the ordinary profits.. (billion yen) 4,5 4, 3,5 3, 2,564 2,5 Figure 44: Changes in Ordinary Profits and Basic Profits 3,823 3,545 3,51 3,259 3,334 3,392 3,11 2,768 2,662 2, 1,5 1, 5 Ordinary Profits Basic Profits 24

28 III Investment Results 1. Total Assets As of the end of fiscal 216, total assets increased from the previous year for the first time in two years to 375,55 billion yen (12.3% y/y). By the type of items, securities accounted for 82.5% of total assets (39,714 billion yen, 13.1% y/y) followed by loans at 9.1% (34,71 billion yen, 97.4% y/y). [Figures 45 and 46] Cash, Deposits and Savings Call Loans Figure 45: Changes in Total Assets Monetary Trusts Securities Loans Tangible Fixed Assets Others Total Assets 212 3,574 2,766 2,59 27,824 4,244 6,46 11, , ,416 2,669 2,459 28,53 38,99 6,319 11,586 35, ,68 3,672 3,332 29,942 36,81 6,329 12,72 367, ,458 1,28 3,71 3,52 34,986 6,25 12, , ,534 1,21 4,543 3,971 34,71 6,124 12, ,55 Below are figures excluding Japan Post Insurance ,85 2,563 1,83 2,568 27,553 6,374 7,74 254, ,753 2,439 1,877 21,565 27,78 6,23 7, , ,42 3,227 1,897 23,315 26,832 6,197 7, , , ,56 23,691 26,8 6,14 8,18 285, ,174 1,51 2,416 24,622 26,1 5,987 7, ,168 Figure 46: Ratio to Total Assets (%) Cash, Tangible Monetary Total Deposits Call Loans Securities Loans Fixed Others Trusts Assets and Savings Assets Below are figures excluding Japan Post Insurance

29 2. Securities By the type of securities (39,714 billion yen in total), Japanese government bonds ranked top with 148,553 billion yen (99.99% y/y) accounting for 48.% of the total securities, followed by foreign securities at 85,197 billion yen (18.3% y/y), corporate bonds at 25,824 billion yen (11.8% y/y), stocks at 21,514 billion yen (11.8% y/y) and local government bonds at 12,982 billion yen (96.% y/y). [Figure 47] Since the domestic interest rate remained low throughout fiscal 216, financial resources were increasingly allocated to foreign securities etc., because of their comparatively higher interest rates. As a result, the amount of bonds (total of government bonds, local government bonds and corporate bonds) decreased for the third successive year (187,36 billion yen, 99.95% y/y). The amount of stocks increased for second successive year. Among the assets, the amount of bonds accounted for 49.9%, foreign securities for 22.7%, and stocks for 5.7% of the total in fiscal 216. [Figures 48 and 49] Of all the foreign securities, the amount of bonds (total of government bonds, local government bonds corporate bonds, and other foreign securities) stood at 79,451 billion yen (11.1% y/y), and the amount of stocks stood at 5,745 billion yen (88.1% y/y). [Figure 49] Government Bonds Figure 47: Changes in Breakdown of Securities Local Government Bonds Amount Ratio Amount Ratio Amount Ratio Amount Ratio Amount Ratio Amount Ratio Amount , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,714 Below are figures excluding Japan Post Insurance , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,228 Figure 48: Changes in Balance of Bonds and Stocks. (Amount:billion yen Ratio:%) Corporate Bonds Stocks Foreign SecuritiesOther Securities Total 26

30 Figure 49: Changes in Balance of Foreign Securities (billion yen) 1, 8, , , ,745 (%) , 5,25 5, , 2, 5,78 56,186 67,137 72,131 79, Bonds Stocks Ratio to Total Assets. 3. Loans The balance of loans decreased from the previous year to 34,71 billion yen (97.4% y/y), accounting for 9.1% of the total assets (down by.4 points from the previous year). Loans were the main items in the investment portfolios of life insurers from the late 196s to early 197s accounting for almost 7% over the total assets; however, the amount has been decreasing in the long run. Financial loans, accounting for 91.4% of total loans, decreased from the previous year to 31,132 billion yen (97.3% y/y), and policy loans also decreased from the previous year to 2,938 billion yen (97.9% y/y). [Figure 5] As for the items of financial loans, loans to entities account for 84.6%, followed by loans to individuals for 5.6%. [Figure 51] The amount of risk-monitored loans (total of loans to bankrupt borrowers, past due loans, loans overdue for three months or more and restructured loans) decreased from the previous year to 93 billion yen (8.% y/y). Among them, past due loans amounted to 69 billion yen (76.9% y/y) and restructured loans amounted to 19 billion yen (9.7% y/y). The ratio of risk-monitored loans to total loans was.3% in fiscal 216 (.3% in fiscal 215). [Figure 52] Figure 5: Changes in Breakdown of Loans (Amount:billion yen,ratio:%) Ratio to Total Financial Loans Policy Loans Total Loans Assets ,39 3,25 4, ,964 3,134 38, ,741 3,69 36, ,985 3,1 34, ,132 2,938 34, Below are figures excluding Japan Post Insurance ,383 3,169 27, ,998 3,79 27, ,837 2,994 26, ,12 2,95 26, ,19 2,82 26,

31 Figure 51: Changes in Financial Loans to Entities and Individuals Large Entities Leading Medium-sized Entities 19,67 14, ,951 1, <97.8> <95.> <82.8> <11.8> <91.3> <9.8> Note 1: Financial loans to entities include the loans to foreign entities in addition to the items described above. Note 2: Financial loans from Japan Post Insurance to SMEs include loans to Management Organization for Postal Savings and Postal Life Insurance. Note 3: The figures in parentheses represent year-on-year rate. (Classification of Scale of Entities by the Type of Business) SMEs Home Mortgages Consumer Loans 32,489 17, ,874 1, <94.5> <98.3> <85.4> <89.8> <92.4> <12.2> 3,443 16, ,14 1,4 88 <93.7> <97.1> <16.6> <87.2> <96.5> <11.7> 29,437 16, ,4 1, <96.7> <98.1> <97.3> <91.2> <95.2> <87.4> 27,798 15, ,989 1, <94.4> <96.2> <115.5> <9.5> <93.8> <91.6> 26,338 14, ,47 1, <94.7> <94.8> <82.8> <9.6> <91.3> <9.8> Below are figures exclusing Japan Post Insurance 2,286 16, ,888 1, <97.1> <98.> <85.4> <89.2> <92.4> <12.2> Loans to Entities (billion yen, %) Loans to Individuals 19,981 16, ,885 1,4 88 <98.5> <96.9> <16.6> <99.8> <96.5> <11.7> 2,67 16, ,925 1, <1.4> <98.> <97.3> <12.1> <95.2> <87.4> 19,55 15, ,916 1, <97.2> <96.3> <115.5> <99.5> <93.8> <91.6> Type Business of 1 All Types of Business Except for 2 to 4 2 Retail and Eating and Drinking Business 3 Service Business 4 Wholesale Business Large Entities Leading Medium-Sized Entities With more than 3 employee s and; Capital of 1 billion yen or more Capital of more than 3 million yen and less than 1 billion yen With more than 5 employee s and; Capital of 1 billion yen or more Capital of more than 5 million yen and less than 1 billion yen With more than 1 employee s and; Capital of 1 billion yen or more Capital of more than 5 million yen and less than 1 billion yen With more than 1 employee s and; Capital of 1 billion yen or more Capital of more than 1 million yen and less than 1 billion yen SMEs With capital of 3 million yen or less or 3 or less full-time employees With capital of 5 million yen or less or 5 or less full-time employees With capital of 5 million yen or less or 1 or less full-time employees Figure 52: Changes in Amount of Risk-Monitored Loans With capital of 1 million yen or less or 1 or less full-time employees 28

32 4. Tangible Fixed Assets (Real Estate) Of the total amount of tangible fixed assets (6,124 billion yen), the amount of real estate, which is the total amount of land, buildings and construction in process, was 6,27 billion yen (97.9% y/y). The total amount of tangible fixed assets accounts for 1.6% of the total assets for fiscal 216.[Figures 45 and 53] Figure 53: Changes in Balance of Real Estate IV Liabilities and Net Assets Total liabilities stood at 352,674 billion yen (12.6% y/y), accounting for 93.9% of gross capital (the total of liabilities and net assets). By the items of liabilities, insurance reserves account for 92.8% of total liabilities. Of all the insurance reserves, policy reserves, which are reserved for future insurance claim payments, account for 98.1% of total policy reserves. Other than that, reserves for policyholder dividends account for 1.3%, which are reserved for paying dividends on insurance contracts, and reserves for outstanding claims account for.7%, which are reserved for unclaimed insurance payable. [Figure 54 (upper panel)] Meanwhile, total net assets were 22,83 billion yen (97.6% y/y), accounting for 6.1% of gross capital. It decreased from the previous year due to the decrease in "total valuation, translation adjustment, and others". [Figure 54 (lower panel)] Figure 54: Liabilities and Net Assets Breakdown of Liabilities (Billion %) Amount Ratio of Liabilities Ratio Insurance Reserves 327, Reserves for Outstanding Claims 2, Policy Reserves 321, Reserves for Policyholder Divid 4, Reserves for Price Fluctuations Others Total Liablities 4, , , Breakdown of Net Assets Amount Ratio of Net Assets Ratio Total Foundation Funds and others or 1, Fund or Capital 2, Accumulated Redeemed Founda 2, Capital Surplus 1, Surplus or Retained Earnings 3, Others Total Valuation, Translation Adustment, and Others Stock Acquisition Rights Total Net Assets 12, , Total Liabilities and Net Assets 37,