III Investment Results 1. As of the end of fiscal 2016, total assets increased from the previous year for the first time in two years to 375,505 (102.3% y/y). By the type of items, securities accounted for 82.5% of total assets (309,714, 103.1% y/y) followed by loans at 9.1% (34,071, 97.4% y/y). [Figures 45 and 46] Cash, Deposits and Savings Call Figure 45: Changes in Monetary Trusts Securities Tangible Fixed Others 2012 3,574 2,766 2,059 27,824 40,244 6,460 11,646 344,998 2013 4,416 2,669 2,459 28,503 38,099 6,319 11,586 350,582 2014 5,608 3,672 3,332 29,942 36,810 6,329 12,072 367,255 2015 7,458 1,280 3,701 30,052 34,986 6,250 12,966 367,167 2016 7,534 1,201 4,543 30,971 34,071 6,124 12,314 375,505 Below are figures excluding Japan Post Insurance. 2012 2,850 2,563 1,803 20,568 27,553 6,374 7,704 254,535 2013 2,753 2,439 1,877 21,565 27,078 6,230 7,461 263,493 2014 3,402 3,227 1,897 23,315 26,832 6,197 7,633 282,343 2015 5,602 920 2,056 23,691 26,008 6,104 8,018 285,624 2016 6,174 1,051 2,416 24,622 26,010 5,987 7,299 295,168 Figure 46: Ratio to Cash, Deposits and Savings Call Monetary Trusts Securities Tangible Fixed Others 2012 1.0 0.8 0.6 80.7 11.7 1.9 3.4 100.0 2013 1.3 0.8 0.7 81.3 10.9 1.8 3.3 100.0 2014 1.5 1.0 0.9 81.5 10.0 1.7 3.3 100.0 2015 2.0 0.3 1.0 81.8 9.5 1.7 3.5 100.0 2016 2.0 0.3 1.2 82.5 9.1 1.6 3.3 100.0 Below are figures excluding Japan Post Insurance. 2012 1.1 1.0 0.7 80.8 10.8 2.5 3.0 100.0 2013 1.0 0.9 0.7 81.8 10.3 2.4 2.8 100.0 2014 1.2 1.1 0.7 82.6 9.5 2.2 2.7 100.0 2015 2.0 0.3 0.7 82.9 9.1 2.1 2.8 100.0 2016 2.1 0.4 0.8 83.4 8.8 2.0 2.5 100.0 (%)
2. Securities By the type of securities (309,714 in total), Japanese government bonds ranked top with 148,553 (99.99% y/y) accounting for 48.0% of the total securities, followed by foreign securities at 85,197 (108.3% y/y), corporate bonds at 25,824 (101.8% y/y), stocks at 21,514 (101.8% y/y) and local government bonds at 12,982 (96.0% y/y). [Figure 47] Since the domestic interest rate remained low throughout fiscal 2016, 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 (187,360, 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 2016. [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 (110.1% y/y), and the amount of stocks stood at 5,745 (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 2012 148,769 53.5 13,934 5.0 25,155 9.0 16,725 6.0 55,986 20.1 17,673 6.4 278,244 2013 149,815 52.6 14,008 4.9 24,895 8.7 18,029 6.3 61,450 21.6 16,830 5.9 285,031 2014 148,761 49.7 13,868 4.6 24,855 8.3 22,697 7.6 73,280 24.5 15,965 5.3 299,429 2015 148,568 49.4 13,517 4.5 25,363 8.4 19,813 6.6 78,653 26.2 14,607 4.9 300,523 2016 148,553 48.0 12,982 4.2 25,824 8.3 21,514 6.9 85,197 27.5 15,642 5.1 309,714 Below are figures excluding Japan Post Insurance 2012 92,296 44.9 5,236 2.5 18,671 9.1 16,724 8.1 55,084 26.8 17,673 8.6 205,686 2013 97,292 45.1 4,835 2.2 18,454 8.6 18,028 8.4 60,211 27.9 16,830 7.8 215,652 2014 100,675 43.2 4,312 1.8 18,202 7.8 22,696 9.7 71,299 30.6 15,965 6.8 233,152 2015 104,389 44.1 4,112 1.7 19,126 8.1 19,812 8.4 74,964 31.6 14,507 6.1 236,912 2016 105,821 43.0 3,755 1.5 20,125 8.2 21,455 8.7 80,845 32.8 14,225 5.8 246,228 Figure 48: Changes in Balance of Bonds and Stocks. (Amount: Ratio:%) Corporate Bonds Stocks Foreign SecuritiesOther Securities
Figure 49: Changes in Balance of Foreign Securities () 100,000 80,000 16.2 17.5 20.0 6,142 21.4 6,521 22.7 5,745 (%) 25.0 20.0 60,000 5,205 5,264 15.0 40,000 20,000 50,780 56,186 67,137 72,131 79,451 10.0 5.0 0 2012 2013 2014 2015 2016 Bonds Stocks Ratio to 0.0 3. The balance of loans decreased from the previous year to 34,071 (97.4% y/y), accounting for 9.1% of the total assets (down by 0.4 points from the previous year). were the main items in the investment portfolios of life insurers from the late 1960s to early 1970s accounting for almost 70% 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 (97.3% y/y), and policy loans also decreased from the previous year to 2,938 (97.9% y/y). [Figure 50] 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 (80.0% y/y). Among them, past due loans amounted to 69 (76.9% y/y) and restructured loans amounted to 19 (90.7% y/y). The ratio of risk-monitored loans to total loans was 0.3% in fiscal 2016 (0.3% in fiscal 2015). [Figure 52] Figure 50: Changes in Breakdown of (Amount:,Ratio:%) Ratio to Financial Policy 2012 37,039 3,205 40,244 11.7 2013 34,964 3,134 38,099 10.9 2014 33,741 3,069 36,810 10.0 2015 31,985 3,001 34,986 9.5 2016 31,132 2,938 34,071 9.1 Below are figures excluding Japan Post Insurance 2012 24,383 3,169 27,553 10.8 2013 23,998 3,079 27,078 10.3 2014 23,837 2,994 26,832 9.5 2015 23,102 2,905 26,008 9.1 2016 23,190 2,820 26,010 8.8
2012 2013 2014 2015 2016 Figure 51: Changes in Financial to Entities and Individuals Large Entities Leading Medium-sized Entities 19,067 14,673 129 1,951 1,142 587 2016 <97.8> <95.0> <82.8> <101.8> <91.3> <90.8> 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 32,489 17,097 131 13,874 1,451 794 <94.5> <98.3> <85.4> <89.8> <92.4> <102.2> 30,443 16,594 139 12,104 1,400 808 <93.7> <97.1> <106.6> <87.2> <96.5> <101.7> 29,437 16,282 135 11,040 1,333 706 <96.7> <98.1> <97.3> <91.2> <95.2> <87.4> 27,798 15,659 156 9,989 1,251 646 <94.4> <96.2> <115.5> <90.5> <93.8> <91.6> 26,338 14,849 129 9,047 1,142 587 <94.7> <94.8> <82.8> <90.6> <91.3> <90.8> Below are figures exclusing Japan Post Insurance 20,286 16,881 131 1,888 1,451 794 2012 <97.1> <98.0> <85.4> <89.2> <92.4> <102.2> 2013 2014 2015 to Entities (, %) to Individuals 19,981 16,351 139 1,885 1,400 808 <98.5> <96.9> <106.6> <99.8> <96.5> <101.7> 20,067 16,027 135 1,925 1,333 706 <100.4> <98.0> <97.3> <102.1> <95.2> <87.4> 19,505 15,439 156 1,916 1,251 646 <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 than 300 than 300 million yen and less than 1 than 50 than 50 million yen and less than 1 than 100 than 50 million yen and less than 1 than 100 than 100 million yen and less than 1 SMEs With capital of 300 million yen or less or 300 or less full-time s With capital of 50 million yen or less or 50 or less full-time s With capital of 50 million yen or less or 100 or less full-time s Figure 52: Changes in Amount of Risk-Monitored With capital of 100 million yen or less or 100 or less full-time s
4. Tangible Fixed (Real Estate) Of the total amount of tangible fixed assets (6,124 ), the amount of real estate, which is the total amount of land, buildings and construction in process, was 6,027 (97.9% y/y). The total amount of tangible fixed assets accounts for 1.6% of the total assets for fiscal 2016.[Figures 45 and 53] Figure 53: Changes in Balance of Real Estate