(R ep ri t o f L ife I s ura ce F act B o o k(2 016 )) 2
1.L ife I s ura ce i N um b ers I tro ductio 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 2008; therefore, some figures show the data excluding Japan Post Insurance in order to maintain continuity with the previous data before its inclusion. In addition to this report, the provides detailed statistical data of the life insurance market in Japan; please refer to such data as necessary. 3
1.L ife I s ura ce i N um b ers C o te ts
1.L ife I s ura ce i N um bers -T he T re d o f I d ivid ual I s ura ce Po licies -
1.L ife I s ura ce i N um bers 6.8% 6.6% 6.2% 6.1% 60,018 billion yen 56,927 billion yen 53,676 billion yen 52,471 billion yen 2011 2012 2013 2014 2015 65,601 billion yen 71,345 billion yen 66,836 billion yen 67,431 billion yen 2011 2012 2013 2014 2015 36,289 billion yen 37,140 billion yen 37,222 billion yen 34,738 billion yen 2011 2012 2013 2014 2015 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 )* 100%
I. Underwriting Results 1. Insurance Products for Individual 3 (1) Individual Insurance u New Policies The number of new policies for individual insurance (including converted contracts) was 19.88 million (102.5% y/y), and the amount of new policies 4 (reflecting the net increase arising from the conversion) u u
u u u 10
F igre 17: C ha ges i C o m p o s itio R atio o f I d ivid al I s ra ce b y G e d er (N m b er o f N ew Po licies ) F igre 18: C o m p o s itio R atio o f I d ivid al I s ra ce b y T yp e i F Y 2 015 (N m b er o f N ew Po licies b y G e d er) F igre 19: C ha ges i C o m p o s itio R atio o f I d ivid al A ity b y G (N m b er o f N ew Po licies ) e d er 14
1.L ife I s ra ce i N m b ers F igre 2 0: C ha ges i C o m p o s itio R atio o f I d ivid al I s ra ce b y A ge (N m b er o f N ew Po licies ) F igre 2 1: C o m p o s itio R atio o f I d ivid al I s ra ce b y T yp e i F Y 2 015 (N m b er o f N ew Po licies b y A ge) F igre 2 2 : C ha ges i C o m p o s itio R atio o f I d ivid al A ity b y A ge (N m ber o f N ew Po licies )
1.L ife I s ra ce i N m b ers F ig re 2 3 : N ew P o licies fo r I d iv id al I s ra ce b y P re fe ct re (F Y 2 015 )
1.L ife I s ra ce i N m b ers F ig re 2 4 : P o licie s i F o rce fo r I d iv id al I s ra ce b y P re fe ct re
Figure 26: Breakdown of Group Insurance in FY2015 (Amount of New Policies) Total 3,873 Figure 27: Breakdown of Group Insurance in FY2015 (Amount of Policies in Force) Total 375,152 Figure 28: Changes in Group Insurance (Number/Amount of New Policies)
1. Life Insurance in Numbers Figure 29: Changes in Group Insurance (Number/Amount of Policies in Force) Figure 30: Changes in Lapses and Surrenders of Group Insurance (Amount/Ratio of Lapses and Surrenders)
1. Life Insurance in Numbers Figure 31: New Policies and Policies in Force for Group Annuity Insurance Figure 32: Changes in Policies in Fore for Group Annuity Insurance (Amount)
1. L i f e I n s u r a n c e i n N u m b e r s 2. Investment Income and Expenses Investment income in fiscal 2015 was 8,291 billion yen (67.4% y/y). Of all the investment income, while interest and dividends steadily increased from the previous year to 7,111 billion yen (100.4% y/y), others (including profits on asset management of special accounts) decreased significantly from the previous year to 513 billion yen (3,082 billion yen in fiscal 2014). Profits on asset management of special accounts themselves amounted to 16 billion yen (2,699 billion yen in fiscal 2014). [Figure 40] Of all the interest and dividends, the amount of interest and dividends from securities stood at 5,947 billion yen (101.1% y/y) and that of interest from loans stood at 762 billion yen (94.2% y/y). The amount of profits on sales of securities stood at 662 billion yen (64.2% y/y), and the losses on sales of securities stood at 155 billion yen (189.6% y/y). The losses on revaluation of securities stood at 91 billion yen (665.2% y/y). [Figures 40 and 41] The amount of the balance of foreign exchange profits minus foreign exchange losses stood at -1,021 billion yen in fiscal 2015 (1,004 billion yen in fiscal 2014). The investment yield on assets in general accounts was 1.92% (2.58% in fiscal 2014). The investment yield increased from the previous year in real estate to 2.62% (2.50% in fiscal 2014), while it decreased from the previous year in bonds to 1.75% (1.88% in fiscal 2014), domestic stocks to 5.17% (5.31% in fiscal 2014), foreign securities to 2.24% (5.50% in fiscal 2014) and financial loans to 1.70% (2.28% in fiscal 2014). [Figure 42] Interest and Dividends Securities F i g u r e 4 0 : C h a n g e s i n I n v e s t m e n t I n c o m e Loans Rent of Real Estate Deposits and Others Profit on Sales of Securities Foreign Exchange Profit Others (billion yen, %) 6,293 4,892 986 326 88 1,011 81 752 8,139 2011 <100.4> <102.7> <92.6> <95.3> <94.5> <90.9> <6863.8> <252.0> <106.0> 6,475 5,153 919 318 84 935 1,184 3,238 11,835 2012 <102.9> <105.3> <93.2> <97.7> <95.5> <92.5> <1448.0> <430.7> <145.4> 6,877 5,620 866 312 79 1,124 693 2,631 11,326 2013 <106.2> <109.1> <94.2> <97.9> <94.0> <120.1> <58.5> <81.2> <95.7> 7,085 5,880 809 312 83 1,032 1,110 3,082 12,310 2014 <103.0> <104.6> <93.5> <100.1> <104.7> <91.8> <160.1> <117.1> <108.7> 7,111 5,947 762 318 82 662 4 513 8,291 2015 <100.4> <101.1> <94.2> <102.0> <100.0> <64.2> <0.4> <16.7> <67.4> Below are figures excluding Japan Post Insurance. 4,752 3,701 639 326 85 921 81 751 6,507 2011 <101.4> <103.2> <95.7> <95.3> <94.5> <88.0> <6863.8> <266.3> <108.2> 4,975 3,964 612 318 79 875 1,184 3,238 10,274 2012 <104.7> <107.1> <95.7> <97.7> <93.5> <95.0> <1448.0> <430.8> <157.9> 5,419 4,439 592 312 74 1,053 691 2,621 9,785 2013 <108.9> <112.0> <96.8> <97.9> <93.7> <120.3> <58.4> <80.9> <95.2> 5,720 4,761 568 312 77 970 1,110 3,049 10,850 2014 <105.5> <107.3> <95.9> <100.1> <104.1> <92.2> <160.5> <116.3> <110.9> 5,802 4,856 550 318 77 661 4 468 6,936 2015 <101.4> <102.0> <96.9> <102.0> <99.2> <68.1> <0.4> <15.4> <63.9> Note 1: Others include income from monetary trusts, profit on financial derivatives and gains on assets in special accounts. Note 2: The figures in parentheses represent year-on-year rate. Total
1. L i f e I n s u r a n c e i n N u m b e r s Interest Paid Figure 41: Changes in Investment Expenses Losses on Sales of Securities Losses on Revaluation of Securities Foreign Exchange Losses Others 60 705 231 182 709 1,889 2011 <115.0> <92.5> <40.5> <30.5> <83.9> <66.7> 61 323 216 29 1,105 1,734 2012 <101.8> <45.8> <93.4> <15.9> <155.8> <91.8> 69 258 46 21 949 1,345 2013 <113.4> <79.9> <21.7> <74.0> <85.9> <77.6> 64 82 13 105 1,059 1,325 2014 <92.5> <31.8> <29.2> <491.7> <111.6> <98.5> 68 155 91 1,026 1,131 2,473 2015 <106.9> <189.6> <665.2> <968.1> <106.8> <186.6> Below are figures excluding Japan Post Insurance. 58 675 231 179 681 1,826 2011 <115.7> <91.5> <41.7> <30.1> <80.8> <65.6> 57 303 216 28 1,099 1,705 2012 <98.8> <44.9> <93.4> <15.8> <161.4> <93.4> 64 247 46 21 946 1,327 2013 <112.2> <81.7> <21.7> <75.8> <86.1> <77.8> 60 77 13 105 1,057 1,314 2014 <92.9> <31.1> <29.2> <491.7> <111.8> <99.0> 64 153 91 1,025 1,128 2,463 2015 <107.3> <199.7> <665.2> <967.7> <106.7> <187.4> Figure 42: Changes in Portfolio Yields by Type of Assets (billion yen, %) Total Note 1: Others include losses from monetary trusts, financial derivatives expenses and losses on assets in special accounts. Note 2: The figures in parentheses represent year-on-year rate. Bonds Domestic Stocks Foreign Securities Financial Loans Real Estate (%) General Account Assets 2011 1.91 1.56 2.91 1.94 2.27 1.92 2012 2.00 0.61 5.25 2.18 2.35 2.36 2013 1.95 5.14 4.60 2.15 2.43 2.40 2014 1.88 5.31 5.50 2.28 2.50 2.58 2015 1.75 5.17 2.24 1.70 2.62 1.92 Below are figures excluding Japan Post Insurance. 2011 2.13 1.56 2.93 1.67 2.29 2.04 2012 2.24 0.61 5.29 2.09 2.37 2.65 2013 2.10 5.15 4.65 2.07 2.46 2.68 2014 1.98 5.31 5.57 2.30 2.54 2.89 2015 1.81 5.17 2.24 1.50 2.67 2.02 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.
1. Life Insurance in Numbers 3. Operating Expenses The total amount of operating expenses stood at 4,706 billion yen (104.6% y/y). The ratio of premium income to total operating expenses was 12.1% (up 0.5 points from the previous year). [Figure 43] Figure 43: Changes in Operating Expenses (billion yen) (%) 6,000 5,000 11.8 11.4 12.3 11.6 12.1 14.0 12.0 4,000 3,000 2,000 1,000 4,353 4,349 4,389 4,499 4,706 10.0 8.0 6.0 4.0 2.0 0 2011 2012 2013 2014 2015 Operating Expenses Ratio to Premium Income 4. Ordinary Profits and Basic Profits The total amount of ordinary profits decreased from the previous year for the first time in three years to 2,768 billion yen (78.9% y/y) due to the decrease in investment income. The total amount of basic profits, which represents the profitability of the life insurance companies for the year, decreased from the previous year to 3,334 billion yen (87.2% y/y) for the first time in six years. [Figure 44] What is Basic Profit? "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. 0.0 Figure 44: Changes in Ordinary Profits and Basic Profits (billion yen) 4,500 4,000 3,823 3,545 3,510 3,500 3,074 3,259 3,101 3,000 2,583 2,564 2,500 2,000 1,500 1,000 500 2,768 3,334 0 2011 2012 2013 2014 2015 Ordinary Profits Basic Profits
III. Investment Results 1. Total Assets 1. Life Insurance in Numbers As of the end of fiscal 2015, total assets decreased from the previous year for the first time in seven years to 367,167 billion yen (99.97% y/y). By the type of items, securities accounted for 81.8% of total assets (300,523 billion yen, 100.4% y/y) followed by loans at 9.5% (34,986 billion yen, 95.0% y/y). [Figures 45 and 46]
1. Life Insurance in Numbers Figure 49: Changes in Balance of Foreign Securities Figure 50: Changes in Breakdown of Loans
1. Life Insurance in Numbers 1 2 4 2 3 4