Financial Results for the Year Ended March 31, 2009 · 2010. 3. 5. · May 29, 2009 [Contents] Financial Summary for the Year Ended March 31, 2009 1. Business Highlights ･･････P.1

May 29, 2009

[Contents]

Financial Summary for the Year Ended March 31, 2009

1. Business Highlights ･･････ P.1

2. Overview of Genaral Accounts Asset Management for the Fiscal Year Ended March 31 2009 ･･････ P.3

3. Investment Management Performance(General Account) ･･････ P.7

(1) Asset structure

(2) Increases / decreases in assets

(3) Investment income

(4) Investment expenses

(5) Investment indicators

(6) Net valuation gains/losses of trading securities

(7) Market value information of securities

(8) Market value information of assets held in trust

4. Policies in Force by Type of Benefits as of March 31, 2009 ･･････ P.12

5. Balance Sheets ･･････ P.13

6. Statements of Income ･･････ P.25

7. Statements of Changes in Net Assets ･･････ P.29

8. Details of Operating Income (Ordinary Income) ･･････ P.30

9. Statements of Surplus ･･････ P.31

10. Status of Non-performing Assets According to Borrower's Classification ･･････ P.32

11. Status of Risk-Managed Loans ･･････ P.32

12. Breakdown of allowance for doubtful accounts ･･････ P.33

13. Solvency Margin Ratio ･･････ P.34

14. Status of Separate Accounts for the Fiscal Year Ended March 31, 2009 ･･････ P.35

1５. Status of the Company and the Affiliates ･･････ P.37

Attached : Supplementary Materials for the Fiscal Year Ended March 31, 2009

Financial Results for the Year Ended March 31, 2009

Nippon Life Insurance Company (President: Kunie Okamoto) announces financial results for the yearended March 31, 2009.

Nippon Life Insurance Company

(1) Amount of Policies in Force and New Policies Policies in Force

(thousands) Change fromMarch 31,2007

(%)(100 million yen)

Change fromMarch 31,2007

(%)

(thousands) Change fromMarch 31,2008

(%)(100 million yen)

Change fromMarch 31,2008

(%)

12,458 96.1 2,061,750 92.5 12,047 96.7 1,923,738 93.3

2,719 103.0 171,250 100.9 2,827 104.0 174,703 102.0

―　　 ―　 854,197 101.2 ―　　 ―　 874,304 102.4

―　　 ―　 90,430 100.2 ―　　 ―　 91,517 101.2

New Policies

(100 million yen) New policiesNet increase by

conversion (100 million yen) New policiesNet increase by

conversion

1,045 53,186 73,795 -20,609 1,070 60,185 74,410 -14,225

187 11,320 11,472 -151 228 13,285 13,515 -229

―　　 13,595 13,595 ―　　 10,448 10,448

―　　 64 64 ―　　 11 11

(2) Annualized Net Premium of Individual Insurances and Individual AnnuitiesPolicies in Force (100 Million Yen, %)

Change fromMarch 31, 2007

(%)


(%)

25,528 95.8 24,585 96.3

6,396 104.2 7,098 111.0

31,924 97.4 31,684 99.2

5,686 100.6 5,752 101.2

New Policies (100 Million Yen, %)


(%)


(%)

1,579 75.9 1,639 103.8

540 83.8 1,008 186.5

2,119 77.7 2,647 124.9

480 95.6 459 95.7

Notes:

The financial results of the Nippon Life Insurance Company (hereinafter "the Company") for the fiscal year ended March 31, 2009 will be submitted tothe 62nd annual representative policyholders' meeting for resolution on July 2, 2009. Summaries of financial results are as follows.

Medical coverages and living benefits

Medical coverages and living benefits

Total

Group annuity

Individual insurance

Individual annuity

Item

Item

Amount of policiesNumber ofpolicies

(thousands)

Amount of policies Number ofpolicies

(thousands)

As of March 31, 2009


Amount of policies

Item

Number of policies Number of policies Amount of policiesAs of March 31, 2009As of March 31, 2008


As of March 31,2009

Notes:

1. Business Highlights

As of March 31,2008

Individual annuity

Group insurance

Notes:

Group insurance

Group annuity


Individual annuity

ItemAs of March 31,

2008As of March 31,

2009


Total

Individual annuity

1. The amount of individual annuities is the total of (a) annuity underlyings at the beginning of the annuity payments for policies bound prior to the start of the annuity payments, and (b) policy reserves for policies bound after the start of annuity payments.2. The amount of the group annuity is the amount of the policy reserve.

1. The number of policies includes policies that were converted into new policies. General medical rider sold from October 2008 accepted enrollment by new policies, converted policies, and change of riders (538,000 policies were from change of riders this period). Applications were received for other change of riders this period, resulting in 252,000 policies that are awaiting start of coverage after change of riders.2. The amount of new policies and net increase in policies by conversion for individual annuity represents annuity underlyings at the beginning of annuity payments.3. The amount of new policies for group annuity represents the first premium.

1. The amount of annualized net premium is the annual premium amount calculated by multiplying factors according to the premium payment method to a single premium payment amount (for single payment: amount is premium divided by the insured period).2. The medical coverages and living benefits represent annualized premium related to medical benefits (hospitalization benefits, surgical benefits), living benefits (specified illness benefits, nursing care benefits) and payer benefits (excludes benefits with disability as a reason:includes benefits with specified illness and nursing care as a reason).3. New policies figures include addition of net increase due to conversion.

1 Nippon Life Insurance Company

(3) Major Profit and Loss Items (100 Million Yen, %)

Change fromMarch 31, 2007 (%)


48,900 100.7 50,367 103.0

13,526 96.0 12,470 92.2

42,129 110.0 40,368 95.8

5,558 187.6 12,459 224.2

3,117 94.3 1,192 38.2

(4) Distribution of Surplus (100 Million Yen, %)


Change fromMarch 31, 2008(%)

2,813 96.1 1,850 65.8

2,262 94.4 1,306 57.7

557 94.4 551 98.8

(100 Million Yen, %)


Change fromMarch 31, 2008(%)

481,352 92.9 458,258 95.2

Premium and other income

Investment income

Item

Benefits and Claims

As of March 31, 2009As of March 31, 2008

Investment expense

As of March 31, 2008 As of March 31, 2009


(5) Total Assets

Item

Operating income

Total assets

Item

Current year unappropriated surplus

Reserve for dividends to policyholders

Net surplus after deduction


2. Overview of General Accounts Asset Management for the Fiscal Year Ended March 31, 2009

(1)Investment Environment The Japanese economy in fiscal 2008 slowed down due to lower exports (which had been the driving force of the

economy) following the global economic deceleration, lower capital investment accompanying worsening

corporate earnings, increased severity of an employment and the negative earnings environment, and

consumer spending declined.

◍ The Nikkei average plummeted due to a sharp decline of US stock prices and yen appreciation following

bankruptcies of major US securities firms. After that, the Nikkei average was stagnant against the

background of worsening corporate results due to the global economic downturn, decreasing by ¥4,416

year-on-year to ¥8,109 at the end of the fiscal year.

◍ The yield rate on 10-year government bonds temporarily rose to 1.9% with concern over inflation, but later

continued to drop to 1.35% at the end of the fiscal year, due to the growing financial crisis originating in

the US, escalating economic downturn, and stronger stance on credit relaxation by the Bank of Japan.

◍ The yen temporarily dropped to ¥110 against the dollar due to rising speculation of an interest rate hike in

the US with concerns over inflation. Later, however, the yen appreciated to ¥98.23 against the dollar at

the end of the fiscal year owing to a flight to the yen amid declining risk tolerance of investors due to the

US financial crisis and other factors. The yen temporarily dropped to ¥170 against the euro due to rising

speculation of an interest rate hike in Europe with concerns over inflation, but significantly appreciated to

¥129.84 against the euro at the end of the fiscal year due to the economic deceleration and rate decrease

policy in Europe amid spreading financial uncertainty in Europe that originated in the US.

(2)Investment Summary

With the decline of stock prices, our general account assets decreased by ¥1,820.6 billion compared to the end

of fiscal year 2007, falling to ¥44,454.3 billion (3.9%decrease compared to the previous fiscal year).

We continued to mainly invest in yen-based interest assets that provide stable interest income. From the

perspective of improving profits in the mid-to-long term, we invested in stocks within the scope of acceptable

risk while taking into account business stability.

・We invested in bonds they provide stable interest revenue and are sound assets.

・Although we increased prime lending, our loan balance has decreased because of a continuing trend of

collections exceeding new lending.

・Given our focus on the medium-to-long term perspective, we managed our domestic stock investment based

on the overall state of returns to investors including corporate profitability and dividends.

・Regarding foreign securities, we sold foreign-currency-denominated bonds based on currency movement.

Also, we increased our balance of foreign bonds that hedge risk of exchange rate fluctuation due to the

smaller difference between internal and external rates following the rate decrease in Europe and the low

level of exchange rate hedge cost.


(3)Investment results Interest and dividend income fell due to a decline in foreign investment trusts and domestic stock dividends,

causing asset management related income to decrease to ¥1,247.0 billion (¥1,352.6 billion in fiscal year 2007).

Asset management related costs were ¥892.6 billion, an increase compared to the previous fiscal year, because

of stock valuation losses following plummeting stock prices and an increase of foreign securities valuation loss

(¥289.8 billion in fiscal year 2007).

As a result, our asset management result decreased by ¥708.2 billion versus the previous fiscal year, totaling

¥354.4 billion.

(4)Managing investment risk

Investment risk, which can be categorized into market risk, credit risk, and real estate investment risk, refers

to a variety of risks associated with investment activities. Because life insurance is a long-term contract, risk

management from a long-term perspective that takes into account liability characteristics is necessary in our

asset management. Nippon Life has established an Investment Risk Management Dept., within its Risk

Management Dept., to comprehensively manage investment risk, thereby thoroughly preparing our system to

manage risk and pursue stable returns while keeping losses within an acceptable range.

a.Market risk

Market risk refers to the risk of losses incurred when the market value of assets in investment declines

due to such factors as fluctuations in interest rates, stock prices, or exchange rates. To manage market risk,

we believe it is important to curb excessive losses for each financing and investment transaction, along

with controlling market risk for our entire portfolio within the acceptable levels.

▥ Implementing investment limits and loss-cut rules

To curb excessive losses on each financing and investment transaction, we have implemented

investment limits and loss-cut rules based on the nature of the assets, and regularly report to the

Risk Management Committee on the status of compliance, along with preparing a system to control

risk to acceptable levels when there is breach of rules.

▥ Measuring and managing market value-at-risk

In addition, to control market risk in our entire portfolio, we use statistical analysis to rationally

calculate market value-at-risk of the portfolio as a whole and conduct appropriate asset allocation

within acceptable boundaries of risk.


b.Credit risk

Credit risk refers to the risk of incurring losses when the value of assets, primarily loans and bonds,

declines or disappears due to deterioration of the financial condition of the party to whom credit has been

extended. We believe that in managing credit risk it is important to examine each transaction rigorously,

set terms appropriate to the level of credit risk involved, and analyze and evaluate accurately every facet of

the risk in the portfolio as a whole.

▥ Managing credit risk in individual transactions

We have built systems for rigorous examinations, involving a Credit Department independent of the

groups handling the lending. To build a sound portfolio, we have established interest guidelines to

ensure the returns we obtain are commensurate with the risk, a system of internal ratings for

classifying the creditworthiness of borrowers, and credit ceilings to ensure that credit risk is not

excessively concentrated in a particular company or group.

▥ Managing credit risk in a portfolio as a whole

We calculate the magnitude of credit risk as credit value at risk using Monte Carlo simulations. By

considering the results in our policy for managing our credit risk portfolio, we keep risk within an

acceptable range.

c.Real estate investment risk

Real estate investment risk refers to the risk of reduced returns caused by factors such as rent fluctuation

as well as losses when real estate values decline due to market deterioration. Our approach to managing

real estate investment risk involves rigorous examination of each investment by a Credit Department

independent of groups actually handling the investment. We have also developed a system involving

warning levels for investment return and price levels, which enables us to focus on specific properties

whose profitability is suffering.

(5)ALM

For life insurance companies to carry out stable management in the long term, it is important to use the ALM

(asset and liability management) approach as a basis for understanding the situation of liabilities that pay

future insurance benefits (policy reserve) and investment assets, as well as for adjusting investment schedule.

We analyze and evaluate ①Liability cash flow ②Risk of falling short of assumed interest rate ③Level of

allowed risk for each product, and decide the medium-to-long-term investment plan at Managing Directors

Meetings and Risk Management Committee Meetings.

(6)Self-assessment and allowance for doubtful accounts

Asset self-assessment refers to evaluating individual assets based on the financial condition of each borrower

and its collateral, and is classified into four categories (Normal, II, III IV).

To ensure the objectivity of self-assessment, we have established a highly reliable framework that includes:

・Strict assessment standards based on the insurance company inspection manual of the Financial Services

Agency

・Internal audit by the Internal Auditing Dept. independent from the groups handling the actual assessment

・External audit by external auditors (certified public accountants)

In fiscal year 2008, we implemented appropriate allowance for doubtful accounts according to the same

allowance standards as the previous fiscal year.


Allowance for doubtful accounts standard

・Allowance for “Normal” borrowers is provided under general allowance for doubtful accounts based on actual

loan losses in the previous fiscal year.

・Allowance for “On caution” borrowers is provided under general allowance for doubtful accounts based on the

accumulated actual loan loss ratio (ratio of losses incurred from loans within three years from a certain date)

for the previous three fiscal years.

Regarding corporate loans to “Substandard” borrowers, we distinguish between the portion that is not

secured by collateral or guarantee and other, and calculate actual loan loss ratio.

・Regarding allowance for “Doubtful”, “Quasi-Bankrupt” and ”Bankrupt” borrowers, the necessary amount,

concerning the balance calculated by subtracting estimated collectable amount based on collateral and

guarantees from total loans, is provided as specific allowance for doubtful accounts. The portion for

“Category IV” is directly deducted from total loans amount.


(1) Asset Structure (100 Million Yen, %)

Amount % Amount % Cash equivalents and call loans 6,157 1.3 7,070 1.6

Securities repurchased under resale agreements ----- --- ----- ---

Deposit paid for securities borrowing transactions ----- --- ----- ---

Monetary receivables purchased 13,793 3.0 11,603 2.6

Proprietary trading securities ----- --- ----- ---

Assets held in trust 1,705 0.4 1,146 0.3

Securities 323,242 69.9 300,996 67.7

Domestic bonds 162,317 35.1 169,185 38.1

Domestic stocks 82,657 17.9 55,307 12.4

Foreign securities 75,244 16.3 73,483 16.5

Foreign bonds 56,640 12.2 56,727 12.8

Foreign stocks and other securities 18,604 4.0 16,755 3.8

3,022 0.7 3,019 0.7

Loan receivable 95,533 20.6 91,334 20.5

Policy loans 11,392 2.5 10,874 2.4

Industrial and consumer loans 84,141 18.2 80,459 18.1

Real estate 16,539 3.6 16,512 3.7

Investment property 10,253 2.2 10,195 2.3

Deferred tax assets ----- --- 9,268 2.1

Other assets 6,128 1.3 6,821 1.5

Allowance for doubtful accounts - 349 - 0.1 - 211 - 0.0

Total assets (General account) 462,750 100.0 444,543 100.0

Foreign currency dominated assets 67,606 14.6 61,684 13.9 Note:

(2) Increases / Decreases in Assets(100 Mllion Yen)

Amount Amount Cash equivalents and call loans -3,664 913

Securities repurchased under resale agreements ----- -----

Deposit paid for securities borrowing transactions ----- -----

Monetary receivables purchased 446 -2,189

Proprietary trading securities -20 -----

Assets held in trust -250 -558

Securities -28,645 -22,246

Domestic bonds -1,433 6,867

Domestic stocks -30,296 -27,350

Foreign securities 3,456 -1,761

Foreign bonds 2,169 87

Foreign stocks and other securities 1,286 -1,848

-370 -2

Loan receivable -1,733 -4,199

Policy loans -702 -517

Industrial and consumer loans -1,030 -3,682

Real estate 104 -26

Investment property 156 -58

Deferred tax assets ----- 9,268

Other assets 913 693

Allowance for doubtful accounts -27 137

Total assets (General account) -32,876 -18,206

Foreign currency dominated assets -256 -5,922Note:

Other securities

Other securities


3. Investment Management Performance(General Account)


1. The above assets include cash received as collateral under securities lending contracts. Cash collateral received through these transactions are recorded in other liabilities. (As of March 31, 2008, ¥573.1 billion; as of March 31, 2009, ¥450.4 billion)2. Real eatate is the total of land, buidlings, and construction in progress.

1. Increases/decreases in cash received as collateral under securities lending contracts are as follows: (As of March 31, 2008 ¥-351.9 billion; as of March 31, 2009, ¥-122.6 billion)2.Real estate is the total of land, buidlings, and construction in progress.


(3) Investment Income(100 Million Yen)


Interest, dividend, and other income 12,345 11,484

Interest on deposits and savings 25 17

Interest on securities and dividends 8,988 8,134

Interest on loan receivables 2,012 1,988

Rent income on real estate 1,012 1,034

Other income 305 309

Gain on investment of proprietary trading securities 0 -----

Gain on sale of securities 1,069 886

Gain on sale of domestic bonds 66 107

Gain on sale of domestic stocks and other securities 280 186

Gain on sale of foreign securities 722 592

Other gain ----- -----

Gain on redemption of securities 101 50

Other investment income 9 49

Total 13,526 12,470

(4) Investment Expenses (100 Million Yen)


Interest expense 60 33

Loss on investment of proprietary trading securities ----- 0

Loss on investment of assets held in trust, net 214 558

Loss on sale of securities 932 1,195

Loss on sale of domestic bonds 265 177

Loss on sale of domestic stocks and other securities 22 70

Loss on sale of foreign securities 645 947

Other loss ----- -----

Loss on valuation of securities 392 5,279

Loss on valuation of domestic bonds ----- -----

Loss on valuation of domestic stocks 124 2,739

Loss on valuation of foreign securities 268 2,538

Other loss 0 1

Loss on redemption of securities 29 62

Loss on derivative financial instruments, net 637 1,133

Foreign exchange loss, net 121 159

Provision for allowance for doubtful account 48 -----

Write down of loan ----- 0

Depreciation for rental real estate and other assets 273 271

Other investment expense 189 232

Total 2,898 8,926

Note: In addition to the above, 9.7 billion yen of reversal of allowance for doubtful accounts is recorded as an extraordinary profit in the year ended March 31, 2009.


(5) Investment Indicators①Yield on Primary Assets ( % )

As of March 31, 200８ As of March 31, 2009

Cash equivalents and call loans 0.55 0.48


Deposit paid for securities borrowing transactions ----- 0.37

Monetary receivables purchased 1.87 1.95

Proprietary trading securities 0.57 -----

Assets held in trust -11.39 -26.86

Securities 2.68 0.64

Domestic bonds 1.79 1.91

Domestic stocks 3.70 -1.95

Foreign securities 4.08 -0.04

Foreign bonds 3.26 3.01

Foreign stocks and other 6.95 -8.87

Loans receivable 2.04 2.12

Industrial and consumer loans 1.63 1.74

Real estate 3.45 3.57

Investment property 5.56 5.74

General Account total 2.45 0.80

Overseas investment 3.66 -0.47

②Daily Average Balance (100 Million Yen)Year ended March 31, 2008 Year ended March 31, 2009

Cash equivalents and call loans 7,365 5,639


Deposit paid for securities borrowing transactions ----- 522

Monetary receivables purchased 13,514 12,653

Proprietary trading securities 12 -----

Assets held in trust 1,885 2,080

Securities 284,426 294,335

Domestic bonds 161,569 162,400

Dcomestic stocks 49,732 51,180

Foreign securities 69,857 77,327

Foreign bonds 54,263 57,466

Foreign stocks and other 15,593 19,860

Loans receivable 95,955 93,496

Industrial and consumer loans 84,255 82,399

Real estate 16,448 16,562

Investment property 10,131 10,264

General Account total 434,299 441,110

Overseas investment 78,017 85,356

Notes: 1.Yields are calculated by dividing investment income less investment expenses by the daily average book value balance.2.The amount of overseas investment is the total of assets denominated in foreign currencies and yen.


(6) Net Valuation Gains/Losses of Trading Securities(100 Million Yen)

Carrying valueNet valuationgains/losses

Trading securities 1,694 -447

Carrying valueNet valuationgains/losses

Trading securities 1,102 -445

(7) Market Value Information of Securities (Excluding Trading securities)(100 Million Yen)

Gain Loss Policy-reserve-matching bonds 171,474 177,527 6,053 6,255 -202 Held-to-maturity debt securities 400 401 1 1 -0 Investments in subsidaries and affiliates 544 705 160 160 ---- Other securities 121,689 157,452 35,763 38,663 -2,899

Domestic bonds 3,350 3,385 34 35 -0 Domestic stocks 47,962 80,008 32,046 33,634 -1,587 Foreign securities 61,373 65,167 3,794 4,976 -1,181

Foreign bonds 51,436 54,467 3,030 3,282 -251 Foreign stocks and other securities 9,936 10,700 763 1,693 -930

Other securities 2,881 2,768 -112 16 -129 Monetary receivables purchased 3,041 3,041 0 0 -0 Negotiable deposits 3,080 3,080 0 0 -0

Total 294,108 336,087 41,979 45,081 -3,102 Domestic bonds 162,283 168,023 5,740 5,886 -146 Domestic stocks 48,506 80,714 32,207 33,794 -1,587 Foreign securities 63,563 67,320 3,756 4,987 -1,231

Foreign bonds 53,627 56,619 2,992 3,293 -301 Foreign stocks and other securities 9,936 10,700 763 1,693 -930

Other securities 2,881 2,768 -112 16 -129 Monetary receivables purchased 13,792 14,180 387 395 -7 Negotiable deposits 3,080 3,080 0 0 -0

Gain Loss

Policy-reserve-matching bonds 167,042 173,145 6,103 6,436 -333 Held-to-maturity debt securities 282 283 1 1 -0 Investments in subsidaries and affiliates 544 518 -25 ---- -25 Other securities 130,977 135,385 4,408 12,382 -7,973

Domestic bonds 13,584 13,751 167 187 -20 Domestic stocks 45,944 51,650 5,706 10,543 -4,837 Foreign securities 64,072 63,028 -1,044 1,649 -2,693

Foreign bonds 55,274 55,687 413 1,583 -1,170 Foreign stocks and other securities 8,797 7,340 -1,457 66 -1,523

Other securities 3,182 2,762 -420 1 -421 Monetary receivables purachased 753 752 -0 0 -1 Negotiable deposits 3,440 3,440 0 0 -0

Total 298,846 309,333 10,486 18,819 -8,332 Domestic bonds 169,018 175,169 6,150 6,354 -203 Domestic stocks 46,488 52,169 5,680 10,543 -4,862 Foreign securities 65,111 63,959 -1,152 1,657 -2,810

Foreign bonds 56,314 56,619 305 1,591 -1,286 Foreign stocks and other securities 8,797 7,340 -1,457 66 -1,523

Other securities 3,182 2,762 -420 1 -421 Monetary receivables purachased 11,604 11,832 228 262 -34 Negotiable deposits 3,440 3,440 0 0 -0

○Book Value of Securities Without Market Value(100 Million Yen)

Policy-reserve-matching bonds

Held-to-maturity debt securities

Unlisted foreign bonds

Other

Investments in subsidaries and affiliates

Other securities

Unlisted domestic stocks(excluding over-the-counter-stocks)

Unlisted foreign stocks(excluding over-the-counter-stocks)

Unlisted foreign bonds

Other

Note: Of securities without Market Value, net gains/losses on foreign exchange valuation of assets denominated in foreign currencies were as follows: As of March 31, 2008, ¥-53.2 billion; as of March 31, 2009, ¥-30.3 billion.


Note: The above table includes CDs (negotiable deposits) and other securities deemed appropriate under the Financial Instruments and Exchange Law in Japan.

7,388 11,049

-----

----- -----

As of March 31, 200８


Net gain/loss


Note:


Net gain/loss

Book value

Book value Market value

Market value

Total 10,329

2,941

12,863

----- -----

1,564

6,623

1,718 2,727

----- -----

1,698

1,813

4,106

-----

----- -----

1. Assets held in trust included in trading securities recorded on the balance sheets, and net valuation gains/losses included in profits/losses for the current period include net gains/losses related to derivative transactions.2. Assets held in trust included in trading securities do not include cash equivalents and call loans.


(8) Market Value Information of Assets Held In Trust(100 Million Yen)

Net unrealized gains/losses

Gains Losses

Assets held in trust 1,705 1,705 ----- ----- -----

Net unrealized gains/lossesGains Losses

Assets held in trust 1,146 1,146 ----- ----- -----

・Assets held in trust for investment (100 Million Yen)

Assets held in trust for investment

Assets held in trust for investment

・Assets held in trust classified as held-to-maturity, policy-reserve-matching, and others No data as there was not an ending balance as of March 31, 2008 and as of March 31, 2009.

<Reference>○Appraisal value of real estate

(100 Million Yen)

Revaluation ①＋②②

Land and leaseholds 11,673 14,289 2,616 883 3,500

Revaluation ①＋②②

Land and leaseholds 11,674 13,481 1,807 850 2,657

Notes:

1,146



Net unrealizedgains/losses ①

Carrying value onbalance sheets

Market value(appraisal value)


Market value(appraisal value)

1,705


Market value

Carrying value on balance sheets Net valuation gains/losses

Net valuation gains/losses

Note: Assets held in trust on the balance sheets and net valuation gains/losses included in current period include net gains/losses on derivative transactions.

-445

Net unrealizedgains/losses ①



-447


Market value



Carrying value on balance sheets

Notes: 1. Market value calculations are based on prices rationally calculated by the trustee of assets held in trust.2. Amounts on the balance sheet include net gains/losses on derivative transactions within assets held in trust.

1.Appraisal value is based on the value of land disclosed in public.2.In accordance with the law for the revaluation of land, business use lands were revalued and net valuation gains/losses are recorded on the balance sheets.3.For revaluation ②, the difference between the amount revalued and the historical cost, net of tax has been credited to revaluation reserve for land in net assets, resulting in deferred tax liabilities in respect of revaluation reserve for land being included in liabilities.


Number ofpolicies

(thousands)

Amount(100 million yen)

Number ofpolicies

(thousands)


Number ofpolicies

(thousands)


Number ofpolicies

(thousands)


General 12,039 1,923,652 ----- ----- 27,812 874,159 39,852 2,797,812

Disaster 7,013 368,968 229 3,579 3,337 39,945 10,580 412,493

Others 277 3,455 ----- ----- 83 1,415 361 4,871

8 85 2,827 174,703 11 145 2,846 174,934

Disaster 8,327 512 362 16 1,772 20 10,463 549

Illness 8,276 506 358 16 ----- ----- 8,635 522

Others 11,969 714 121 4 66 0 12,156 719

8,004 ----- 85 ----- 3,122 ----- 11,213 -----

13,204 ----- 360 ----- ----- ----- 13,564 -----

Number ofpolicies

(thousands)


Number ofpolicies

(thousands)


Number ofpolicies

(thousands)


Pure endowment 16,789 91,517 237 4,726 17,027 96,243

Number ofpolicies

(thousands)


Number ofpolicies

(thousands)


Hospitalization coverage 897 27 Disability income coverage 48 40

Surgical coverage

Disability income insurance

4. Policies in Force by Type of Benefits as of March 31, 2009

Individual annuity Group insurance

Medical care insurance

Death protection

Pure endowment

Hospitalizationcoverage

Disability coverage

TotalIndividual insurance

Group annuityWorkers' asset-formation

insurance/annuityTotal

Notes: 1 The number of policies for Group Insurance, Group Annuity, Workers Asset Formation Insurance/Annuity, Medical Care Insurance (Group type), and Disability Income Insurance represents the numbers of the insured. 2 The amount in "Pure endowment" for Individual Annuity, Group Insurance (Annuity Riders), and Workers' Asset-Formation Annuity (excluding Workers' Asset-Formation Savings Annuity) represents the total of (a) annuity underlyings at the beginning of the annuity payments for policies bound prior to the start of the annuity payments, and (b) policy reserves for policies bound after the start of the annuity payments. The amount in "Pure endowment" for Group Annuity, Workers' Asset-Formation Insurance, and Savings Annuity represents the amount of corresponding policy reserves. 3 The amount in "Hospitalization coverage" represents the amount of daily hospitalization benefits. 4 The amount in "Hospitalization coverage" of medical care insurance represents the amount related to hospitalization from illness. 5 The amount in disability income insurance represents the amount of monthly disability benefits payments. 6 The number of insureds and amount of policies for reinsurance written were 19 thousand people and 17.8 billion yen, respectively.


5. Balance Sheets(Million Yen)


Amount Amount

500,625 558,365

Cash 3,053 2,535

Deposits 497,572 555,829

196,100 203,800

1,379,371 1,160,387

170,507 114,637

34,003,765 31,334,883

National government bonds 11,592,242 12,170,897

Local government bonds 1,654,734 1,608,674

Corporate bonds 3,514,354 3,575,038

Domestic stocks 8,762,375 5,855,101

Foreign securities 7,994,217 7,688,044

Other securities 485,842 437,126

9,553,389 9,133,432

Policy loans 1,139,246 1,087,489

Industrial and consumer loans 8,414,143 8,045,943

Tangible fixed assets 1,675,293 1,672,097

Land 1,080,571 1,083,993

Buildings 560,924 545,803

Leases 　　　　－ 160

Construction in progress 12,420 21,484

Other tangible fixed assets 21,376 20,656

Intangible fixed assets 153,520 169,716

Software 55,376 67,409

Other intangible fixed assets 98,144 102,306

Reinsurance receivables 614 275

Other assets 529,146 558,898

Accounts receivable 112,580 214,739

Prepaid expense 7,992 8,895

Accrued revenue 243,876 213,170

Money on deposit 46,070 44,007

Deposit for futures transaction 332 326

Financial derivative instruments 80,979 32,532

Suspense 15,524 23,557

Other assets 21,789 21,669

Deferred tax assets 　　　　－ 926,890

7,900 13,668

-34,944 -21,178

48,135,290 45,825,874Total assets

Call loans

Allowance for doubtful accounts

Monetary receivables purchased

Investments in securities

Loan receivables

Assets held in trust

Customers' liability for acceptances and guarantees

Assets:Cash and deposits


5. Balance Sheets (Continued)(Million Yen)


Amount Amount

42,209,823 42,317,607

236,957 222,094

40,739,597 40,880,121

1,233,268 1,215,391

339 340

1,190,476 1,080,942

573,106 450,495

422 67

26,649 ― 　　

259,578 186,201

56,366 57,947

21,341 23,193

103,636 99,882

103,059 100,496

906 2,005

27,999 131,762

― 　　 116

9,538 8,678

7,870 20,095

94 71

433,771 438,948

5,801 5,968

515 485

487,263 372,013

138,242 ― 　　

177,283 176,020

7,900 13,668

Total liabilities 44,651,511 44,406,066

200,000 200,000

700,000 750,000

651 651

395,742 300,520

9,020 9,867

386,722 290,653

71,917 71,917

1,221 1,244

32,082 32,281

170 170

281,332 185,040

1,296,394 1,251,171

2,276,167 259,636

155 6

-88,938 -91,006

2,187,384 168,636

3,483,778 1,419,807

48,135,290 45,825,874

Total net assets

Total liabilities and net assets

Net unrealized gains on securities, net tax

Deferred gain on derivatives under hedge accounting

Land revaluation difference

Total valuation, conversion and others

Unappropriated surplus

Total equity

Reserve for redemption of foundation funds

Reserve for revaluation

Surplus :

Legal reserve for deficiency

Reserve for price fluctuations of security investments

Acceptances and guarantees

Deferred tax liabilities

Voluntary surplus reserve

Reserve for dividends to policyholders

Policy reserve

Deferred tax liabilities for land revaluation reserve

Cash received as collateral under security lending contracts

Reinsurance payables

Other liabilities

Accrued bonus for directors and corporate auditors

Accrued retirement benefit for directors

Loans payable

Corporate income tax payable

Reserve for outstanding claims

Liabilities :

Policy reserves and others

Accounts payable

Accrued expenses

Deferred income

Deposits received

Guarantee deposits received

Futures transactions margin account

Financial derivative instruments

Leases obligation

Suspense receipt

Other liabilities

Other reserves

Reserve for condensed booking of fixed assets for tax purpose

Reserve for assisting social public welfare

Contingency reserve

Net assets :

Foundation funds

Accrued severance indemnities

Accrued loss from supporting closely related companies


Basis of Presenting the Non-Consolidated Balance Sheet

1.Securities (including items treated as securities based on “financial product

accounting standards” (Corporate Accounting Standards No.10) and securities within

assets held in trust of deposits and monetary receivables purchased) are valued as

follows:

(1)Trading securities are stated at the market value as of the balance sheet date

(Moving average method is used for calculating cost of sales).

(2)Held-to-maturity debt securities are valued using the moving average method net of

accumulated amortization (straight-line).

(3)Policy-reserve-matching bonds are valued using the moving average method net of

accumulated amortization (straight-line) in accordance with the Industry Audit

Committee Report No.21, “Treatment of Accounting and Auditing for

Policy-Reserve-Matching Bonds Within Insurance Industry,” issued by the Japanese

Institute of Certified Public Accountants (the “JICPA”).

(4)Stocks of subsidiaries and affiliates (stocks issued by subsidiaries prescribed in

Article 2 paragraph 12 of the Insurance Business Law excluding subsidiaries

prescribed in Article 2-3 paragraph 2 of the Ordinance of the Insurance Business

Law, and stocks issued by affiliates prescribed in Article 2-3 paragraph 3 of the

Ordinance of the Insurance Business Law) are valued using the moving average

method.

(5)Available-for-sale Securities

①Of securities with market value, stocks (including foreign stocks) are valued by

using the average market value during the period of one month before the

balance sheet date (cost of sales is calculated by using the moving average

method). Others are valued by using the market value on the balance sheet date

(cost of sales is calculated by using the moving average method).

②Of securities without market value, public and corporate bonds (including

foreign bonds), of which the difference between the purchase price and face

value is due to interest rate adjustment, are valued using the moving average

method net of accumulated amortization (straight-line). Others are valued at


the gross moving average amount.

Adjustments to fair value, net of applicable taxes are recorded in a separate

component of net asset.

2.Securities that are held for the purpose of controlling periods outstanding for liabilities

within the sub-groups (insurance type, remaining period, and investment policy) of

insurance products, such as individual insurance and annuity, workers' asset-formation

insurance and annuity, and group insurance and annuity are classified as

policy-reserve-matching bonds in accordance with the Industry Audit Committee

Report No.21, “Treatment of Accounting and Auditing for Policy-Reserve-Matching

Bonds Within Insurance Industry,” issued by the JICPA.

The book value and market value of policy-reserve-matching bonds as of March 31,

2009 amounted to ¥16,704,274 million and ¥17,314,594 million, respectively.

Starting on April 1, 2008, given the need to review the sub-categories of the liabilities

outstanding due to a change in investment policy for bonds, we abolished the

sub-categorizing of guaranteed fixed term rate group annuities and U.S

dollar-denominated single-payment individual insurance, and excluded new fixed rate

variable individual insurance from policies subject to sub-categorization of

yen-denominated single-payment individual insurance.

As a result, a portion of policy-reserve-matching bonds was changed to

available-for-sale securities at the beginning of the period. Compared to the past

method, there were increases in securities of ¥6,640 million and available-for-sale

securities valuation difference of ¥4,001 million and decreases in deferred tax assets

of ¥2,261 million. Also, ordinary income and pretax surplus increased by ¥378

million.

3.Derivative financial instruments are stated at market value.

4.(1)①Tangible fixed assets (except for lease assets related to financial lease where

ownership is not transferred and buildings acquired on or after April 1, 1998)

are depreciated based on the declining balance method. Buildings acquired on or

after April 1, 1998 are depreciated based on the straight-line method.

②Software, which is included within intangible fixed assets, is depreciated based

on the straight-line method.


③Depreciation of lease assets related to financial lease where ownership is not

transferred is based on the straight-line method for the lease term.

(2)The amount of accumulated depreciation for tangible fixed assets is ￥1,063,143

million as of March 31, 2009.

5.Revaluation of the land for operation is performed based on the law related to land

revaluation. The amount related to the valuation difference between the previous and

the revalued amount is tax effected and recognized as “deferred tax liabilities for land

revaluation reserve ” within the liability section. The Valuation difference excluding

tax is recognized as “Land revaluation difference” within the net assets section.

Revaluation Date March 31, 2002

Revaluation Methodology The amount is rationally calculated by using the

land listed value and road rate as prescribed by the

Ordinance clauses 2-1 and 2-4, respectively, which

are the laws regarding land revaluation.

6.Assets and liabilities denominated in foreign currencies are translated into Japanese

yen using “Accounting Standards of the Business Accounting Council.”

Exchange rates fluctuate significantly, and foreign-currency-denominated and

available –for-sale securities, for which recovery is not expected, are converted to yen

using either the rate at the end of the Balance sheet date or the average rate 1 month

prior to the end of the Balance sheet date, whichever has the weaker yen. This

exchange is recorded under “Loss on valuation of securities”.

7.(1)Allowance for doubtful accounts is recognized in accordance with the Company’s

internal Asset Valuation Regulation and Write-Off/Provision Rule.

①The amount of allowance for loans receivable from creditors who are legally or

substantially bankrupt, such as being bankrupt or being in the process of civil

rehabilitation proceedings is recognized based on the amount of credit remaining

after directly deducting amounts expected to be collected through disposal of

collateral or execution of guarantees from the balance of loans receivable (as

mentioned at (3) below).

②The allowance for loans receivable from creditors who are not currently legally


bankrupt but have high possibility of bankruptcy is recognized on the amounts

deemed necessary considering the borrowers’ overall solvency assessment

within the amounts remaining after deductions of amounts expected to be

collected through the disposal of collateral or the execution of guarantees.

③The allowance for loans receivable from creditors other than the above is

provided based on the borrowers’ balance multiplied by the historical average (of

a certain period) percentage of bad debt.

(2)All credits are assessed by the sections concerned in responsible sections in

accordance with the Company’s Asset Valuation Regulation. The assessments are

verified by an independent Asset Auditing Department. The results of the

assessments are reflected in the calculation of the allowance for doubtful accounts.

(3)The amount of collateral value or the amount collectible by the execution of

guarantees or other methods directly subtracted from the balance of loans

receivable is the estimated uncollectible amount for loans (including loans with

credits secured and/or guaranteed) made to legally or substantially bankrupt

borrowers. The amount recognized in the financial statements is ¥7,196 million

(including ¥6,193 million of credits secured and/or guaranteed) as of March 31,

2009.

8.Accrued bonus for directors and corporate auditors is recognized based on the amount

estimated to be paid.

9.(1)Accrued severance indemnities are provided based on the estimated amounts of

projected benefit obligations in excess of the fair value of pension plan assets for

future severance payments of employees as of the balance sheet date.

(2)Information relating to retirement allowance payments is as follows.

①Breakdown of retirement benefit obligation as of March 31, 2009：


Million Yen

As of March 31,

2009

a. Retirement Benefit Obligation ¥(775,391)

b. Pension Plan Asset 270,981

c. Accrued Retirement Benefit Costs (504,409)

d. Unrecognized Actuarial Differences 72,322

e. Unrecognized Past Service Cost (6,861)

f. Accrued Severance Indemnities ¥(438,948)

②Basic information for the calculation of accrued severance indemnities is as

follows:

a.Periodical allocation method of estimated

retirement benefit

Straight-line

b.Discount rate 1.6%

c.Expected rate on plan assets 2.5%

d.Method of amortizing actuarial differences Amortization is made over a

certain period (5years) using the

straight-line method within the

average remaining years of

service of employees one year

after the accrual of liabilities.

e. Method of amortizing prior service costs Amortization is made over a

certain period (5years) using the

straight-line method within the

average remaining years of

service of employees upon

accrual of liabilities.


10.Accrued retirement benefit for directors is an estimated payment amount based on

internal rules.

11.Accrued losses from supporting closely related companies is recognized based on the

amount that is estimated to be required in the future for supporting restructurings of

the closely related companies.

12.Reserve for price fluctuations of investments in securities is recognized based on

Article 115 of the Insurance Business Law.

13.In the past, an accounting treatment based on a method related to ordinary lease

transactions was applied to trading financial leases where ownership is not

transferred. Beginning this period, however, the "Accounting Standards of Lease

Transactions" (Corporate Accounting Standards No.13) and "Application Guidelines

for Accounting Standards of Lease Transactions" (Corporate Accounting Standards

Application Guidelines No.16) is applied.

Based on the new methodology, lease assets of ¥160 million and lease liabilities of

¥116 million are recorded, without effect on ordinary income or pre-tax net surplus

for the period April 1, 2008 to March 31, 2009. Regarding financial leases where

ownership is not transferred and the lease start date is March 31, 2008 or prior, the

accounting treatment based on the method related to ordinary lease transactions is

applied.

14.Hedge accounting is calculated by following method.

(1)The Company applies the mark-to-market method of hedge accounting mainly for

hedging activities against exposures to foreign exchange rate fluctuations on

certain bonds denominated in foreign currencies. The Company also applies the

special treatment prescribed under the Accounting Standards for Financial

Instruments for interest swap agreements to manage cash flow volatility associated

with interest rate changes on certain loans receivable. In addition, The Company

matches forward foreign exchange contracts and currency swaps with certain

financial assets denominated in foreign currencies.

(2)Effectiveness of hedging activities is mainly evaluated by performing a ratio

analysis of market value movement comparisons based on the hedging instruments

and hedging methods taken, which is in accordance with the Company’s internal


risk management policies.

15.Consumption taxes and local consumption taxes are accounted for by using the tax

exclusion method. However, consumption taxes paid on certain real estate

transactions, which are not deductible from consumption taxes withheld and that are

stipulated to be deferred under the Consumption Tax Law, are deferred as prepaid

expenses and amortized over a 5 year period on a straight-line basis. Consumption

taxes other than deferred consumption taxes are recorded to expense income as

incurred.

16.A policy reserve is a reserve set forth in accordance with Article 116 of the

Insurance Business Law. A policy reserve is recognized by performing a

calculation based on the following methodology:

1.Reserves for contracts subject to the standard policy reserve are computed in

accordance with the method prescribed by the Prime Minister (the ordinance

No.48 issued by the Ministry of Finance in 1996).

2.Reserves for other contracts is computed based on the net level premium method.

Since the fiscal year 2006, additional amounts to the policy reserves have been

made over 5 years to a portion of the individual annuity policyholders. Such

treatment is in accordance with Article 69 paragraph 5 of the Enforcement

Ordinance of the Insurance Business Law. As a result of the adoption of the

treatment, the policy reserve is ￥241,261 million as of March 31, 2009.

17.(1)The total amount of loans of bankrupt borrowers, delinquent loans, loans that

are delinquent for over 3 months and loans for restructuring, which were included

in loans receivable, is ¥43,165 million as of March 31, 2009.

.

①The balances of loans of bankrupt borrowers and delinquent loans are ¥3,415

million and ¥38,426 million as of March 31, 2009.

Loans of bankrupt borrowers are loans, except for a portion of loans

written-down, where the borrowers satisfy conditions prescribed in Article 96

Paragraph 1 Item 3 or Item 4 of the Enforcement Regulations of the Corporation

Tax Law. Interest is not accrued as income since the recovery of principal or

interest on the loans is unlikely due to the fact that the principal or interest

payments are long overdue or for other reasons.


Delinquent loans are loans with interest not accrued excluding the loans of

bankrupt borrowers and the loans to which postponement of interest payment is

made with the object of reconstructing and supporting the borrowers.

②There were no loans that are delinquent for over 3 months as of March 31,

2009.

Loans that are delinquent for over 3 months are loans with principal or interest

unpaid for over 3 months beginning one day after the due date based on the loan

agreement.

③The balance of loans for restructuring, were ¥1,323 million as of March 31,

2009.

Loans for restructuring are loans that provide certain concessions favorable to

borrowers with the intent of supporting the borrowers restructuring, such as by

reducing or exempting interests, postponing principal or interest payments,

releasing credits, and providing benefits to the borrowers. These loans exclude

loans classified as loans to bankrupt borrowers, delinquent loans, and loans

delinquent for over 3 months.

(2)The direct write-down of loans receivable decreased balances of loans of

bankrupt borrowers and delinquent loans by ¥6,000 million, ¥1,196 million as of

March 31, 2009, respectively.

18.Total assets within the Separate Accounts as provided for in Article 118 paragraph 1

of the Insurance Business Law are ¥1,371,549 million as of March 31, 2009.

The liabilities amount is the same as the above.

19.The total amount of credits and debits to subsidiaries as of March 31, 2009 are

¥215,054 million and ¥5,042 million, respectively.

20.Changes in the reserve for dividends to policyholders included in policy reserves for

the period ended March 31, 2009 is as follows:


Million Yen

As of March 31,

2009

Balance at the end of previous fiscal year ¥1,233,268

Transfer to reserves from surplus in

previous fiscal year

226,284

Policyholders dividends paid out in the

current period

277,367

Increase in interest 33,206

Balance at the end of fiscal year ¥1,215,391

21.The amount of assets pledged as collateral by securities, land, and buildings as of

March 31, 2009 is ¥606,018 million, ¥2,952 million, and ¥325 million, respectively.

The total amount of loans covered by the aforementioned assets as of March 31,

2009 is ¥470,658 million.

These amounts included ¥531,740 million of securities deposited and ¥470,591

million of cash received as collateral, under the securities lending contracts secured

by cash, as of March 31, 2009.

22.¥50,000 million of foundation funds were additionally offered according to Article

60 of Insurance Business Law.

23.The Company redeemed ¥50,000 million of foundation funds, and credited the same

amount to reserve for redemption of foundation funds provided for in Article 56 of

the Insurance Business Law as of March 31, 2009.

24.The total amount of stocks and investments in subsidiaries is ¥235,711 million as of

March 31, 2009.

25.The amount of securities loaned for consumption is ¥1,411,639 million as of March

31, 2009.

26.Assets for which right is held to sell or re-collateralize are proprietary securities

loaned for consumption, and in this period ownership was maintained for a total

market value of ¥206,962 million as of March 31, 2009.


27.The amount of commitments related to loan receivables and loans outstanding is

¥128,402 million as of March 31, 2009.

28.The amount of future contributions to the Life Insurance Policyholder Protection

Corporation of Japan, in accordance with Article 259 of the Insurance Business

Law, is estimated to be ¥90,467 million as of March 31, 2009.

The contribution amount is recorded as operational expense in the period of payment.

29.(1)Total deferred tax assets are ¥1,237,464 million, and total deferred tax liabilities

are ¥214,081 million as of March 31, 2009. Among deferred tax assets, the

deduction for valuation allowance for deferred tax assets is ¥96,492 million. The

major components causing deferred tax assets are policy reserves of ¥700,876

million, accrued severance indemnities of ¥158,500 million, reserve for price

fluctuations of investments of ¥134,330 million, and allowance for doubtful

accounts of ¥9,429 million. The major component causing deferred tax liabilities

is net unrealized gains on securities of ¥173,758 million.

(2)The statutory tax rate was 36.1% for the years ended March 31, 2009. The major

difference between the statutory tax rate and the effective income tax rate is

－20.2％ for the reserve for dividends to policyholders, and 5.0% for loss on

valuation of securities.

30.The amount of policy reserves provided for the portion of reinsurance as defined in

Article 71, Paragraph 1 of the Enforcement Regulation of the Insurance Business

Law as of March 31, 2009 is ¥190 million.

31.The amount per Article 30, Paragraph 2 of the Enforcement Regulation of the

Insurance Business Law as of March 31, 2009 is ¥260,293 million.


6. Statements of Income(Million Yen)

Year ended March 31,200８

Year ended March 31,200９

Amount Amount

Revenues: 6,509,497 6,605,061

4,890,087 5,036,774

4,889,029 5,035,543

Reinsurance premiums 1,058 1,230

1,352,633 1,247,078

1,234,533 1,148,493

Interest on deposits and savings 2,592 1,799

Interest/dividends on securities 898,898 813,411

Interest on loan receivables 201,242 198,865

Rent on real estate 101,256 103,454

Other Interest/dividends 30,542 30,961

7 ----

106,977 88,609

Gain from redemption of securities 10,153 5,047

Other investment income 962 4,927

266,776 321,208

Income from annuity riders 6,388 8,619

Income from deferred benefits 234,872 279,850

Reversal of policy reserve for outstanding claims 7,953 14,863

Other revenues 17,560 17,875

Expenditures : 6,197,782 6,485,848

4,212,938 4,036,829

1,394,957 1,313,660

475,766 506,864

822,921 832,280

1,166,937 1,102,075

350,997 280,608


392,266 173,731

357,096 140,524

35,170 33,206

555,846 1,245,945

6,007 3,315

---- 0

Loss from investment of assets held in trust 21,483 55,871

93,274 119,523

39,211 527,986

2,950 6,240

63,729 113,319

Foreign exchange loss, net 12,158 15,934

4,814 ----

Write-down of loans ---- 2

Depreciation for rental real estate and other assets 27,331 27,160

Other investment expenses 18,909 23,261

Loss from separate accounts, net 265,975 353,329

552,888 563,271

483,842 466,070

Deferred benefit payments 390,080 367,581

Tax 34,758 36,536

Depreciation 39,235 42,858

Provision for accrued severance indemnities 6,515 5,177

Other expenditures 13,252 13,917

311,714 119,212

1,200 126,072

Gain on disposal of fixed assets 1,200 1,083

Reversal of price fluctuations of security investments ---- 115,250

Reversal of allowance for doubtful accounts ---- 9,738

32,907 11,453

Loss on disposal of fixed assets 7,222 3,742

4,630 5,977

20,000 ----

128 256

Contribution for assisting social public welfare 927 1,477

Surplus before income tax 280,007 233,831

Income tax - current 103,331 -1,363

Income tax - deferred -99,765 53,689

Income tax - total 3,565 52,326

Surplus in the current year 276,441 181,505

Interest on reserve for dividends to policyholders

Extraordinary loss :

Loss from proprietary trading securities

Interest expense

Operating income

Operating expenses

Other expenditures

Loss on reduction entry of real estate

Impairment loss

Provision for reserve of security price fluctuations

Loss on sales of securities

Loss on valuation of securities

Loss from derivative financial instruments, net

Extraordinary profits :

Income from insurance and reinsurance premiums

Insurance premiums

Insurance claims and other payments:

Other revenues

Gain on sales of securities

Investment income

Interest, dividends, and other income

Gain from proprietary trading securities

Death and other claims

Annuity payments


Investment Expenses

Health and other benefits

Surrender benefits

Other refunds

Provision for policy reserves

Loss from redemption of securities

Provision for policy reserves


Notes to the Non-Consolidated Statement of Income

1.The total revenue and expense from transactions with subsidiaries is ¥44,520 million

and ¥40,932 million, respectively for the year ended March 31, 2009.

2.Gain on sales of securities include gain on sales of domestic bonds, domestic stocks

and foreign securities of ¥10,738 million, ¥18,641 million and ¥59,229 million,

respectively for the year ended March 31, 2009.

3.Loss on sales of securities includes loss on sales of domestic bonds, domestic stocks

and foreign securities of ¥17,773 million, ¥7,047 million and ¥94,702 million,

respectively for the year ended March 31, 2009.

4.Loss on the valuation of securities includes loss on sales of domestic stocks and

foreign securities of ¥273,957 million and ¥253,846 million, respectively for the year

ended March 31, 2009.

5.Reversal of the policy reserve for ceded reinsurance used for the calculation of policy

reserves is ¥2 million for the year ended March 31, 2009.

6.①Losses from assets held in trust include valuation loss of ¥44,531 million for the

year ended March 31, 2009.

②Losses from derivative financial instruments include valuation loss of ¥70,978

million for the year ended March 31, 2009.

7.Benefit cost of accrued severance indemnities for the year ended March 31, 2009 was

analyzed as follows:

Million Yen

Year ended March 31,

2009

Service cost ¥26,593

Interest cost 12,590

Expected return on plan assets (7,531)

Amortization of actuarial differences 17,790

Amortization of prior service cost (7,548)


Others 1,306

Net periodic benefit cost ¥43,201

8.Loss on Impairment of Asset

①Method for grouping the assets

Leased buildings and idle property are classified as one group per structure. Assets

utilized for insurance business operations are classified into one group.

②Circumstances causing impairment losses

The Company observed a marked decrease of profitability and fair value in some of

the fixed asset groups. The book value of fixed assets was reduced to the

recoverable amount and an impairment loss was recognized as an extraordinary

loss.

③Asset groups that recognized an impairment losses with amount and breakdown:

(Million Yen)

Purpose of use Land Leasehold Buildings Total

Leased Property ¥330 ¥423 ¥30 ¥785

Idle Property ¥3,607 ---- ¥1,585 ¥5,192

Total ¥3,937 ¥423 ¥1,616 ¥5,977

④Calculation method of recoverable amount

The recoverable amount used for the measurement of impairment loss on leased

property is determined at net realizable value upon sales of the asset or the future

cash flows. The recoverable amount for idle property is determined at the net

realizable value upon sales of the asset. The discount rate used for calculation of

future cash flows is 4%. Net realizable values are determined based on the real

estate appraisal or posted land price.


9.Transactions with affiliates is as follows:

Subsidiaries,etc:

Type Subsidiaries

Company Name Nissay Credit Guarantee Co., Ltd.

Location Osaka

Capital ¥950 million

Main Business Debt guarantee services

Percentage of Shareholder Voting Rights Direct 78.7% Indirect 6.3%

Nature of Relationship between Parties Debt guarantee, etc. Interlocking

directors, etc

Detail of transaction Debt guarantees of the Nippon Life’s

loan(*1)

Balance as of March 31,2009 ¥576,183 million

(*1)Credit guarantees of the loans held by Nippon Life are made in accordance with

the guarantee service agreement bound between the Nissay Credit Guarantee and

the debtor.


7．Statements of Changes in Net Assets(Million Yen）

Foundation funds and others Total surplusFoundation funds Beginning balance 408,143 395,742

Beginning balance 250,000 200,000 Increase/DecreaseIncrease/Decrease Additions to reserve for dividents to policyholders -239,686 -226,284

Issuance of foundation funds ----- 50,000 Additions to reserve for redemption of Foundation funds -50,000 -50,000Redemption of foundation funds -50,000 -50,000 Interest on foundation funds -3,119 -2,501Net change -50,000 ----- Net surplus 276,441 181,505

Ending balance 200,000 200,000 Reversal of land revaluation difference 3,963 2,058Reserve for redemption of foundation funds Net change -12,400 -95,222

Beginnig balance 650,000 700,000 Ending balance 395,742 300,520Increase/Decrease Total foundation funds and others

Additions to reserve for redemption of fundation funds 50,000 50,000 Beginning balance 1,308,795 1,296,394Net change 50,000 50,000 Increase/Decrease

Ending balance 700,000 750,000 Issuance of foundation funds ----- 50,000Reserve for revaluation Additions to reserve for dividents to policyholders -239,686 -226,284

Beginig balance 651 651 Interest on foundation funds -3,119 -2,501Increase/Decrease Net surplus 276,441 181,505

Net change ----- ----- Redemption of foundation funds -50,000 -50,000Ending balance 651 651 Reversal of land revaluation difference 3,963 2,058

Surplus Net change -12,400 -45,222Legal reserve for deficiency Ending balance 1,296,394 1,251,171

Beginning balance 8,123 9,020 Valuation,Conversion, and othersIncrease/Decrease Net unrealized gain on securities,net of tax

Additions to legal reserve for deficiency 897 847 Beginning balance 4,607,770 2,276,167Net change 897 847 Increase/Decrease

Ending balance 9,020 9,867 Net change,excluding Foundation funds and others -2,331,603 -2,016,530Voluntary surplus reserve Net change -2,331,603 -2,016,530

Contingency reserve Ending balance 2,276,167 259,636Beginning balance 71,917 71,917 Deferred gain on derivatives under hedge accountingIncrease/Decrease Beginning balance 57 155

Net change ----- ----- Increase/DecreaseEnding balance 71,917 71,917 Net change,excluding foundation funds and others 98 -149

Reserve for retirement benefit Net change 98 -149Beginning balance 3,500 ----- Ending balance 155 6Increase/Decrease Land revaluation difference

Reversal of reserve for retirement benefit -3,500 ----- Beginning balance -84,955 -88,938Net change -3,500 ----- Increase/Decrease

Ending balance ----- ----- Net change,excluding foundation funds and others -3,983 -2,067Reserve for assisting social public welfare Net change -3,983 -2,067

Beginning balance 648 1,221 Ending balance -88,938 -91,006Increase/Decrease Total valuation, conversion and others

Additions to reserve for assisting social public welfare 1,500 1,500 Beginning balance 4,522,873 2,187,384Reversal of reserve for assisting social public welfare -927 -1,477 Increase/DecreaseNet change 573 23 Net change,excluding foundation funds and others -2,335,488 -2,018,748

Ending balance 1,221 1,244 Net change -2,335,488 -2,018,748Reserve for condensed booking of fixed asses for tax purpose Ending balance 2,187,384 168,636

Beginning balance 29,261 32,082 Total net assetsIncrease/Decrease Beginning balance 5,831,668 3,483,778

Additions to reserve for condensed booking of fixed asses for tax purpose 3,566 941 Increase/DecreaseReversal of reserve for condensed booking of fixed assets for tax purpose -745 -742 Issuance of foundation funds ----- 50,000Net change 2,820 199 Additional to reserve for dividents to policyholders -239,686 -226,284

Ending balance 32,082 32,281 Interest on foundation funds -3,119 -2,501Reserve for condensed booking of fixed assets, not purchased, yet Net surplus 276,441 181,505

Beginning balance 1,908 ----- Redemption of foundaton funds -50,000 -50,000Increase/Decrease Reversal of land revaluation difference 3,963 2,058

Reversal of reserve for condensed booking of fixed assets, not purchased, yet -1,908 ----- Net change,excluding foundation funds and others -2,335,488 -2,018,748Net change -1,908 ----- Net change -2,347,889 -2,063,970

Ending balance ----- ----- Ending balance 3,483,778 1,419,807Other reserves

Beginning balance 170 170Increase/Decrease

Net change ----- ----- Ending balance 170 170

Unappropriated surplusBeginning balance 292,615 281,332Increase/Decrease

Additions to reserve for dividents to policyholders -239,686 -226,284Additions to legal reserve for deficiency -897 -847Additions to reserve for redemption of foundation funds -50,000 -50,000Interest on foundation funds -3,119 -2,501Net surplus 276,441 181,505Reversal of reserve for retirement benefit 3,500 ----- Additions to reserve for assisting social public welfare -1,500 -1,500Reversal of reserve for assisting social public welfare 927 1,477Additions to reserve for condensed booking of fixed assets for tax purpose -3,566 -941Reversal of reserve for condensed booking of fixed assets for tax purpose 745 742Reversal of reserve for condensed booking of fixed assets, not purchased, yet 1,908 ----- Reversal of land revaluation difference 3,963 2,058Net change -11,283 -96,291

Ending balance 281,332 185,040

For the year endedMarch 31,2008





8．Details of Operating Income (Ordinary Income)(Million Yen)

For　the year endedMarch 31, 2008

For the year endedMarch 31, 2009

Ordinary income (Core operating profit) (A) 637,540 539,887

Capital gain 108,796 88,609

Gain from proprietary trading securities 7 ----

Gain from assets held in trust ---- ----

Gain from trading securities ---- ----

Gain on sales of securities 106,977 88,609

Gain from derivative financial instruments ---- ----

Foreign exchange gain ---- ----

Other capital gain 1,812 ----

Capital loss 229,857 832,636

Loss from proprietary trading securities ---- 0

Loss from assets held in trust 21,483 55,871

Loss from trading securities ---- ----

Loss on sales of securities 93,274 119,523

Loss on valuation of securities 39,211 527,986

Loss from derivative financial instrument 63,729 113,319

Foreign exchange loss 12,158 15,934

Other capital loss ---- ----

Net capital gain/loss (B) -121,060 -744,026

Ordinary income including net capital gain/loss (A+B) 516,479 -204,138

Non-recurring income 21,308 564,616

Income from reinsurance premiums ---- ----

Reversal of contingency reserve ---- 564,616

Other non-recurring income 21,308 ----

Non-recurring loss 226,074 241,264

Reinsurance premium fee ---- ----

Provision for contingency reserves ---- ----

Provision for individual allowance for doubtful accounts ---- ----

Provision of allowance for specific overseas debts ---- ----

Bad debt expense of loans ---- 2

Other non-recurring loss 226,074 241,261

Non-recurring income / loss (C) -204,765 323,351

Operating income (A+B+C) 311,714 119,212

( Reference) Details of other gains and losses (Million Yen)

For the year ended For the year ended

March 31,2008 March 31,2009

Other ordinary gain - -Foreign exchange related gain from foreign currency denominated insurance products - -

Other ordinary loss 1,812 -Foreign exchange related loss from foreign currency denominated insurance products 1,812 -

Other capital gain 1,812 -Foreign exchange related gain from foreign currency denominated insurance products 1,812 -

Other capital loss - -Foreign exchange related loss from foreign currency denominated insurance products - -

Other non-recurring income 21,308 -The effect of changing to monthly valuation of policy reserves 21,300 -Individual allowance for doubtful accounts 8 -

Other non-recurring loss 226,074 241,261Article 69 Clause 5 of Enforcement Regulation of Insurance Business Law, provision for policy reserves 226,074 241,261


9. Statements of Surplus(Thousands Yen)


281,332,008 185,040,053

742,180 710,630

742,180 710,630

---- ----

282,074,189 185,750,683

Appropriations : 282,074,189 185,750,683

Reserve for policyholder dividends 226,284,047 130,634,056

Net surplus 55,790,142 55,116,626

Additions to legal reserve for deficiency 847,000 558,000

Additions to reserve for redemption of foundation funds 50,000,000 50,000,000

Interest on foundation funds 2,501,750 2,489,250

Transfer to voluntary reserve : 2,441,392 2,069,376

Reserve for assisting social public welfare 1,500,000 1,500,000

Reserve for condensed booking of fixed assets for taxpurpose

941,392 569,376

Reserve for condensed booking of fixed assets, notpurchased yet

---- ----

---- ----Surplus carried forward

Unappropriated surplus for the current year

Reversal from voluntary surplus reserve

Reversal of Reserve for condensed booking of fixed assets fortax purpose

Total

Reversal of Reserve for condensed booking of fixed assets, notpurchased yet


10. Status of Non-performing Assets According to Borrower's Classification(100 Million Yen, %)

As of March 31, 2008 As of March 31, 2009125 124

Doubtful Loans 440 293 Substandard Loans 59 13

624 431 [Percent of total] (%) ［0.52］ [0.41]

Normal Loans 118,584 105,602 Total 119,209 106,033

Notes:

　　 Supplemental information for borrower classification

11. Status of Risk-Managed Loans(100 Million Yen, %)


Loans to bankrupt borrowers 33 34

Delinquent Loans 531 384

Loans that are delinquent for over three months 4 ----

Loans for Restructuring 54 13

Total (b) 624 431

[Percent of total loans receivable](%) [0.65] [0.47]

Notes :

(Information) Status of Allowance and Secured amount (100 Million Yen)

As of March 31, 2008 As of March 31, 2009 Allowance for doubtful accounts (c) 349 211

General allowance for doubtful accounts 190 162 Specific allowance for doubtful accounts 158 49 Allowance for specific overseas loans ---- ----

Coverage ratio for loans by borrower classification (c)/(a) 55.9% 49.1% Coverage ratio for risk-managed loans (c)/(b) 56.0% 49.1%

Secured amount (d) 611 427 Amount secured by collateral and/or guarantee 467 391 Allowance for doubtful accounts 143 35

Total coverage ratio (d)/(a) 97.8% 99.1%

Bankrupt and Quasi-Bankrupt Loans

Subtotal (a)

Note: The allowance for doubtful accounts used to calculate the total coverage ratio is the total amount of specific allowance for doubtful accounts and general allowance for substandard loans.

1. Bankrupt and quasi-bankrupt loans are non-performing assets that have fallen into bankruptcy due to reasons including initiation of bankruptcy proceedings, start of reorganization proceedings, and submission of an application to start rehabilitation proceedings.2. Doubtful loans are non-performing assets with a strong likelihood that loan principal or interest cannot be recovered according to the contract, although the obligor has not yet entered into bankruptcy, but because of difficulties in financial condition and business performance of the obligor.3. Substandard loans include loans that are delinquent for over three months or loans for restructuring. Loans that are delinquent for over three months are loans with principal or interest being unpaid for over three months counting from the day after the due date based on the loan agreement (excluding 1) and 2) above). Loans for restructuring are loans that provide certain concessions favorable to the borrower with the intent of supporting the borrower's company restructuring. Examples of such consessions include reducing or exempting interests, postponing principal or interest payments, releasing credits, and providing other benefits to the borrowers (excluding 1), 2) from above, and loans that are delinquent for over three months).4. Normal loans are loans that do not fall under the classifications for 1) to 3)above, and where the obligor has no financial or business performance problems.

* Classifications and calculation methods used in this table are based on the Enforcement Regulation of the Insurance Business Law. The table includes guaranteed private offering loans of financial institution,loans, securities lending, accrued interest, suspense payments, and customers’ liabilities for acceptances and guarantees.* Loans subject to bankruptcy rehabilitation are directly deducted from total loans as estimated uncollectible amounts calculated by subtracting estimated collectable amounts based on collateral and guarantees from total loans. These amounts were ¥7.1 billion for loans subject to bankruptcy rehabilitation as of March 31, 2009; ¥4.8 billion for loans subject to bankruptcy rehabilitation as of March 31, 2008.

1. For loans to bankrupt borrowers and quasi-bankrupt borrowers (including collateralized and guaranteed loans), an estimated uncollectible amount (calculated by subtracting estimated collectable amounts based on collateral and guarantees from the total loans) is directly deducted from total loan amount. The amount of loans to bankrupt borrowers and delinquent loans are ¥6.0 billion and ¥1.1 billion as of March 31, 2009; ¥1.1 billion and ¥3.7 billion as of March 31, 2008.2. Loans to bankrupt borrowers are loans of the following with principal and interest payments being long overdue and interests not being accrued: (a) Borrowers to borrowers that are legally bankrupt through filings for proceedings under the Corporate Reorganization Law, Civil Rehabilitation Law, Bankruptcy Law, or Commercial Law, (b) Borrowers to borrowers that have notes suspended from being traded, and (c) Borrowers to borrowers that have filed for legal proceedings similar to the aforementioned proceedings based on overseas laws .3. Delinquent loans are loans which interests not being accured on the balance sheet, which excludes aforementioned items 1) and 2) and loans for restructuring.4. Loans that are delinquent for over three months are loans with principal or interest unpaid for over three months counting from the day after the due date based on the loan agreement. Note that the account does not include "Loans to bankrupt borrowers" and "Delinquent Loans".5. Loans for restructuring are loans that provide certain concessions favorable to the borrower with the intent of supporting the borrower's comp any restructuring, such as by reducing or exempting interests, postponing principal or interest payments, releasing credits, and providing other benefits to the borrowers (excluding 1), 2) from above, and loans that are delinquent for over three month).


12. Breakdown of allowance for doubtful accounts(Million Yen)

(1)Breakdown of allowance for doubtful accounts

(A)General allowance for doubtful accounts

(B)Specific allowance for doubtful accounts

(C)Allowance for specific overseas loans

(2)Specific allowance for doubtful accounts

(A)Provision

(B)Reversal

[excluding reversals with write-down]

(C)Net provision

(3)Allowance for specific overseas loans

(A)Number of debtor countries

(B)Amounts of credit

(C)Provision

(D)Reversal

(4)Write-down of loans

<Reference>[Status of Borrower Classification]

(100 Million Yen, %)

Money available Money availablePercentage

of wholePercentage

of whole

Loan balances 95,533 100.0 91,334 100.0

(After direct write-off of category IV)

Non-categorized 93,234 97.6 88,987 97.4

Category II 2,163 2.3 2,310 2.5

Category III 135 0.1 37 0.0

Category IV ---- ---- ---- ----

Notes: 1. Specific allowances for doubtful accounts of Category III were as follows:

2. The amounts of direct write-off of Category IV were as follows:

　　　　　　　　　　　　　　　----

　 As of March 31, 2009, ¥3.4 billion ; as of March 31, 2008, ￥13.5 billion

As of March 31, 2009, ¥7.1 billion ; as of March 31, 2008, ￥4.8 billion

20,736

20,744

- 8

　　　　　　　　　　　　　　　----


19,071

15,872

　　　　　　　　　　　　　　　----

　　　　　　　　　　　　　　　----

　　　　　　　　　　　　　　　----

　　　　　　　　　　　　　　　----

16,250

4,927

　　　　　　　　　　　　　　　----

- 8,611

- 1,702

12,124

19,041

- 6,917

- 2,821

- 10,945

　　　　　　　　　　　　　　　----

　　　　　　　　　　　　　　　----

　　　　　　　　　　　　　　　----

2

　　　　　　　　　　　　　　　----

　　　　　　　　　　　　　　　----

　　　　　　　　　　　　　　　----



　　　　　　　　　　　　　　　----

　　　　　　　　　　　　　　　----

2

Changes

- 6,909

　　　　　　　　　　　　　　　----


13. Solvency Margin Ratio(Million Yen)


8,217,904 4,800,915

3,301,725 2,653,864

Total Net Assets 1,067,608 1,118,048

Reserve for price fluctuation of security investments 487,263 372,013

Contingency reserve 1,429,062 864,445

General allowance for doubtful accounts 19,071 16,250

Others 298,719 283,107

3,212,612 389,725

297,510 225,883

1,271,175 1,424,104

---- ----

-194 -272

135,075 107,609

1,420,785 1,061,664

158,600 154,192

77,210 75,916

203,823 189,925

1,154,090 810,106

32,086 24,821

10,616 10,952

(Information)

Policy reserve valuation method and ratio for individual insurance and annuities


Net level premium method Net level premium method

Net level premium method Net level premium method

100.0% 100.0%

Net unrealized gain/loss on real estate × 85%

Investment risk R3

Excess of continued Zillmerized reserve

Solvency margin gross amount (A)

Foundation funds and other reserve funds

Net unrealized gain/loss on securities × 90%

Solvency margin ratio

Business management risk R4

Qualifying subordinated debt

Deductions

Others

Total amount of risk (B)

Underwriting risk R1

Underwriting risk of third market insurance R8

Anticipated yield risk R2

Minimum guarantee risk R7

(A)

( 1 / 2 ) × (B)

1,156.8% 904.4%

Policies subject to the standard policy reserve

Policies not subject to the standard policy reserve

Ratio (exluding contingency reserve)

× 100

(R1 + R8) + (R2 + R3 + R7) + R42 2

Note: 1. The aforementioned amounts and figures are calculated based on Article 86, Article 87 of the Enforcement Regulation of the Insurance Business Law, as well as the Ordinance No. 50 issued by the Ministry of Finance in 1996.　(Excess of continuous Zillmerized reserve is calculated based on the Ordinance No. 50 1-3-1.) 2 .The standard method is used for calculation of the amount equivalent to minimum guarantee risk.

Notes: 1. Individual insurance and annuities are subject to valuation method and ratio. Policy reserves for group insurance and annuities are not included in the above figures due to the absence of an accumulation method. 2. For valuation ratio, policies subject to the standard policy reserve represent the ratio in accordance with the method, which the Prime Minister prescribed, by means of the ordinance No.48 issued by the Ministry of Finance in 1996. Policies not subject to the standardpolicy reserve represent the ratio for the reserve calculated by the net level premium method and unearned premium.


14. Status of Separate Accounts for the Fiscal Year Ended March 31, 2009

(1) Balance of Separate Account Assets (Million Yen)


Individual variable insurance 150,319 110,159

Individual variable annuity 213,115 163,119

Group annuity 1,496,836 1,098,269

Separate account total 1,860,271 1,371,549

(2) Status of Separate Account for Individual Variable Insurance

A. Policies in Force

Number of policiesAmount of policies

(million yen)Number of policies

Amount of policies(million yen)

Variable insurance (term life) 2,955 15,638 2,770 14,611

Variable insurance (whole life) 39,603 645,458 38,824 622,997

42,558 661,097 41,594 637,609

B. Breakdown of Separate Account Assets Year-End Balance (Individual Variable Insurance)

Amount(million yen)

Composition ratio (%)Amount

(million yen)Composition ratio (%)

Cash, deposits, and call loans 11,002 7.3 5,009 4.5

Securities 129,905 86.4 93,828 85.2

Domestic bonds 30,276 20.1 27,146 24.6

Domestic stocks 51,957 34.6 34,611 31.4

Foreign securities 47,670 31.7 32,070 29.1

Foreign bonds 18,309 12.2 13,309 12.1

Foreign stocks and other securities 29,361 19.5 18,760 17.0

Other securities ----- ----- ----- -----

Loans receivable ----- ----- ----- -----

Others 9,411 6.3 11,321 10.3

Allowance for doubtful accounts ----- ----- ----- -----

Total 150,319 100.0 110,159 100.0

C. Investment Income from Separate Account (Individual Variable Insurance)(Million Yen)



3,416 3,044

9,948 3,782

----- 0

-18,358 -4,343

----- -----

----- -----

4 3

4,768 22,711

10 0

13,971 11,028

0 6

1,499 2,474

1 5

-25,242 -33,737

Other investment income

Net investment income




Foreign exchange loss

Loss from derivative financial instruments

Other investment expense

Gain on redemption of securities

Gain on valuation of securities

Foreign exchange gain

Gain from derivative financial instruments



Total


As of March 31, 2009As of March 31, 2008


(3) Status of Separate Account for Individual Variable Annuities

A. Policies in Force

Number of policiesAmount

(million yen)Number of policies

Amount(million yen)

Individual variable annuity 30,304 212,931 29,519 163,100

B. Breakdown of Separate Account Assets Year-End Balance (Individual variable annuities)

Amount(million yen)

Composition ratio (%)Amount

(million yen)Composition ratio (%)

Cash, deposits, and call loans 2,000 0.9 　　　　　　　　　　　　　　　　---- 　　　　　　　　　　　　　　　　----

Securities 205,101 96.2 156,910 96.2

Domestic bonds 28,823 13.5 28,541 17.5

Domestic stocks 　　　　　　　　　　　　　　　　---- 　　　　　　　　　　　　　　　　---- 　　　　　　　　　　　　　　　　---- 　　　　　　　　　　　　　　　　----

Foreign securities 　　　　　　　　　　　　　　　　---- 　　　　　　　　　　　　　　　　---- 　　　　　　　　　　　　　　　　---- 　　　　　　　　　　　　　　　　----

Foreign bonds 　　　　　　　　　　　　　　　　---- 　　　　　　　　　　　　　　　　---- 　　　　　　　　　　　　　　　　---- 　　　　　　　　　　　　　　　　----

Foreign stocks and other securities 　　　　　　　　　　　　　　　　---- 　　　　　　　　　　　　　　　　---- 　　　　　　　　　　　　　　　　---- 　　　　　　　　　　　　　　　　----

Other securities 176,278 82.7 128,368 78.7

Loans receivable 　　　　　　　　　　　　　　　　---- 　　　　　　　　　　　　　　　　---- 　　　　　　　　　　　　　　　　---- 　　　　　　　　　　　　　　　　----

Others 6,013 2.8 6,209 3.8

Allowance for doubtful accounts 　　　　　　　　　　　　　　　　---- 　　　　　　　　　　　　　　　　---- 　　　　　　　　　　　　　　　　---- 　　　　　　　　　　　　　　　　----

Total 213,115 100.0 163,119 100.0

C. Investment Income from Separate Account (Individual variable annuity)(Million Yen)



6,222 1,611

52 219

　　　　　　　　　　　　　　　　---- 　　　　　　　　　　　　　　　　----

-35,005 -11,695

　　　　　　　　　　　　　　　　---- 　　　　　　　　　　　　　　　　----

　　　　　　　　　　　　　　　　---- 　　　　　　　　　　　　　　　　----

1 0

82 2,035

　　　　　　　　　　　　　　　　---- 　　　　　　　　　　　　　　　　----

2,059 27,605

　　　　　　　　　　　　　　　　---- 　　　　　　　　　　　　　　　　----

　　　　　　　　　　　　　　　　---- 　　　　　　　　　　　　　　　　----

0 0

-30,871 -39,504


As of March 31, 200９As of March 31, 200８



Gain on redemption of securities

Gain on valuation of securities

Foreign exchange gain

Gain from derivative financial instruments

Other investment income

Net investment income




Foreign exchange loss

Loss from derivative financial instruments

Other investment expense


15. Status of the Company and Affiliates

(100 Million yen)



66,075 66,928

3,020 910

2,585 1,520

483,869 459,974

(2) Scope of Consolidation and Application of the Equity Method


10

0

4

(1) Selected Financial Data Which Represents the Company's Major Operations

Total revenues

Operating income

Number of affiliates accounted for under the equity method

Surplus in the current year

Total assets

Number of consolidated subsidiaries

Number of non-consolidated subsidiaries accounted for under the equity method


(3) Policies of Presenting the Consolidated Financial Statements

i)Consolidated subsidiaries

The consolidated financial statements include the accounts of the Company and its

subsidiaries. Consolidated subsidiaries as of March 31, 2009 are listed below:

Nissay Computer Co., Ltd (Japan)

Nissay Asset Management Corporation (Japan)

Nissay Information Technology Co., Ltd. (Japan)

Nissay Capital Co., Ltd. (Japan)

Nissay Leasing Co., Ltd. (Japan)

Nissay Credit Guarantee Co., Ltd. (Japan)

Nippon Life Insurance Company of America (U.S.A.)

NLI Properties West, Inc. (U.S.A.)

NLI Commercial Mortgage Fund, LLC (U.S.A.)

NLI Commercial Mortgage Fund II, LLC (U.S.A.)

The major subsidiaries excluded from consolidation are Nissay Card Service Co.,

Ltd., the Tokyo Agency of Nippon Life Insurance Co., Ltd. and Nissay Business

Service Co., Ltd.

NLI Properties Central, Inc. and NLI Properties East, Inc. were excluded from

consolidation due to the liquidation.

The respective and aggregate effects of the companies, which are excluded from

consolidation, on total assets, revenues, net income and surplus for the fiscal year

ended March 31, 2009 are immaterial. This exclusion from consolidation does not

prevent a reasonable judgment of the consolidated financial position of the

Company and its subsidiaries and the result of their operations.

ii)Affiliates

Affiliates accounted for under the equity method as of March 31, 2009 are listed

below:

Nissay Dowa General Insurance Company, Limited (Japan)

The Master Trust Bank of Japan, Ltd. (Japan)

Corporate-Pension Business Service Co., Ltd. (Japan)

Nissay-SVA Life Insurance Co., Ltd. (China)


The subsidiaries not consolidated, e.g., Nissay Card Service Co., Ltd, the Tokyo

Agency of Nippon Life Insurance Co., Ltd. and others, and affiliates other than

those listed above, e.g., Bangkok Life Assurance Public Company Limited, are not

accounted for under the equity method. The respective and aggregate effects of such

companies to consolidated net income and surplus for the fiscal year ended March

31, 2009 are immaterial.

The number of consolidated subsidiaries and affiliates as of March 31, 2009 were as

follows:

Consolidated subsidiaries 10

Subsidiaries not consolidated but accounted for 0

under the equity method

Affiliates accounted for under the equity method 4

ⅲ)Financial statement end dates of consolidated subsidiaries and affiliates

The end date of financial statements of consolidated overseas subsidiaries and

affiliates is December 31. The financial statements are prepared using data as of the

date of preparation, and necessary adjustments are made to reflect important

transactions that occurred between the financial statement end date and preparation

date.

ⅳ)Valuation of assets and liabilities of consolidated subsidiaries and affiliates

The company has adopted the mark to market method.

ⅴ)Amortization of goodwill

The total amount of good will is recorded to expense as incurred in the fiscal

consolidated year.


(4) Consolidated Balance Sheets(Million Yen)


595,333 616,728

196,100 203,800

1,379,371 1,160,387

170,507 114,637

33,956,847 31,283,156

9,513,305 9,050,468

1,746,924 1,685,176

Land 　　　　　　　　　　　　　　　　　---- 1,084,930

Buildings 　　　　　　　　　　　　　　　　　---- 556,207

Leases 　　　　　　　　　　　　　　　　　---- 203

Construction in progress 　　　　　　　　　　　　　　　　　---- 21,484

Other tangible fixed assets 　　　　　　　　　　　　　　　　　---- 22,351

156,008 167,541

Software 　　　　　　　　　　　　　　　　　---- 64,945

Other intangible fixed assets 　　　　　　　　　　　　　　　　　---- 102,595

614 275

694,195 781,863

8,537 944,425

8,554 14,204

-39,300 -25,220

48,386,999 45,997,446


42,214,502 42,321,180

Reserve for outstanding claims 239,867 224,277

Policy reserve 40,741,366 40,881,510

Reserve for dividends to policyholders 1,233,268 1,215,391

339 340

1,344,698 1,239,459

94 71

435,358 440,804

5,930 6,123

515 485

487,263 372,013

131,375 　　　　　　　　　　　　　　　　　----

177,283 176,020

8,554 14,204

44,805,916 44,570,702

Net assets: As of March 31, 2008 As of March 31, 2009

Foundation funds 200,000 200,000

Reserve for redemption of foundation funds 700,000 750,000

Reserve for revaluation 651 651

Surplus 473,978 349,344

Total equity 1,374,629 1,299,995

Net unrealized gain on securities, net tax 2,301,439 253,693

Deferred gain on derivatives under hedge accounting 155 6

Land revaluation difference - 88,938 - 91,006

Cumulative translation adjustments - 16,157 - 46,148

Total valuation, conversion and others 2,196,499 116,544

Minority interests 9,954 10,203

Total net assets 3,581,082 1,426,743

48,386,999 45,997,446

Deferred tax liabilities for land revaluation reserve

Cash and deposits

Customers’ liability for acceptances and guarantees

Reinsurance receivables

Accrued severance indemnities

Total liabilities and net assets

Accrued retirement benefit for directors

Total liabilities

Reserve for price fluctuations of security investments

Acceptances and guarantees

Liabilities:

Policy reserves and others:

Accrued loss from supporting closely related companies

Other assets

Deferred tax assets


Total assets

Loan receivables

Deferred tax liabilities

Intangible fixed assets

Accrued bonus for directors and corporate auditors

Tangible fixed assets

Reinsurance payables

Other liabilities

Assets:

Investments in securities

Call loans

Assets held in trust

Monetary receivables purchased


Basis of Presenting the Consolidated Balance Sheet

1.Securities of the parent company (including items treated as securities based on

“financial product accounting standards” (Corporate Accounting Standards No.10) and

securities within assets held in trust of deposits and monetary receivables purchased)

are valued as follows:

(1)Trading securities are stated at the market value as of the balance sheet date

(Moving average method is used for calculating cost of sales).

(2)Held-to-maturity debt securities are valued using the moving average method net

of accumulated amortization (straight-line).

(3)Policy-reserve-matching bonds are valued using the moving average method net of

accumulated amortization (straight-line) in accordance with the Industry Audit

Committee Report No.21, “Treatment of Accounting and Auditing for

Policy-Reserve-Matching Bonds Within Insurance Industry,” issued by the Japanese

Institute of Certified Public Accountants (the “JICPA”).

(4)Stocks of subsidiaries and affiliates of non-consolidated or non-equity method

(stocks issued by subsidiaries prescribed in article 2 paragraph 12 of the Insurance

Business Law excluding subsidiaries prescribed in Article 2-3 paragraph 2 of the

Ordinance of the Insurance Business Law, and stocks issued by affiliates prescribed

in Article 2-3 paragraph 3 of the Ordinance of the Insurance Business Law) are

valued using the moving average method.

(5)Available-for-sale Securities

①Of securities with market value, stocks (including foreign stocks) are valued by

using the average market value during the period of one month before the

balance sheet date (cost of sales is calculated by using the moving average

method). Others are valued by using the market value on the balance sheet date

(cost of sales is calculated by using the moving average method).

②Of securities without market value, public and corporate bonds (including foreign

bonds), of which the difference between the purchase price and face value is due

to an interest rate adjustment, are valued using the moving average method net of

accumulated amortization (straight-line). Others are valued at the gross moving


average amount.

Adjustments to fair value, net of applicable taxes are recorded in a separate component

of net asset.

2.Securities that are held for the purpose of controlling periods outstanding for liabilities

within the sub-groups (insurance type, remaining period, and investment policy) of

insurance products, such as individual insurance and annuity, workers' asset-formation

insurance and annuity, and group insurance and annuity are classified as

policy-reserve-matching bonds in accordance with the Industry Audit Committee

Report No.21, “Treatment of Accounting and Auditing for Policy-Reserve-Matching

Bonds Within Insurance Industry,” issued by the JICPA.

The book value and market value of policy-reserve-matching bonds as of March 31,

2009 amounted to ¥16,704,274 million and ¥17,314,594 million, respectively. Starting

on April 1, 2008, given the need to review the sub-categories of the liabilities

outstanding due to a change in investment policy for bonds, we abolished the

sub-categorizing of guaranteed fixed term rate group annuities and U.S

dollar-denominated single-payment individual insurance, and excluded new fixed rate

variable individual insurance from policies subject to sub-categorization of

yen-denominated single-payment individual insurance.

As a result, a portion of policy-reserve-matching bonds was changed to

available-for-sale securities at the beginning of the period. Compared to the past

method, there were increases in securities of ¥6,640 million, available-for-sale

securities valuation difference of ¥4,001 million, and decreases in deferred tax assets

of ¥2,261 million. Also, ordinary income and pretax surplus increased by ¥378

million.

3.Derivative financial instruments are stated at market value.

4.(1)①Tangible fixed assets of the parent company (except for lease assets related to

trading financial leases where ownership is not transferred and buildings acquired

on or after April 1, 1998) are depreciated based on the declining balance method.

Buildings acquired on or after April 1, 1998 are depreciated based mainly on the

straight-line method. ②Depreciation of software, which is included in intangible fixed assets, is

calculated based on the straight-line method.


③The straight-line method based on lease period is used to calculate depreciation of

lease assets related to trading financial leases where ownership is not transferred.

(2)The amount of accumulated depreciation for tangible fixed assets is ￥1,112,067

million as of March 31, 2009.

5.Revaluation of the land for operation of the parent company is performed based on the

law related to land revaluation. The amount related to the valuation difference between

the previous and the revalued amount is tax effected and recognized as “deferred tax

liabilities for land revaluation reserve” within the liability section. The Valuation

difference excluding tax is recognized as “land revaluation difference” within the net

assets section.

Revaluation Date March 31, 2002

Revaluation Methodology The amount is rationally calculated by using the

land listed value and road rate as prescribed by the

Ordinance clauses 2-1 and 2-4, respectively, which

are the laws regarding land revaluation.

6.Assets and liabilities denominated in foreign currencies are translated into Japanese

yen using “Accounting Standards of the Business Accounting Council”.

Exchange rates fluctuate significantly, and foreign-currency-denominated and

available-for-sale securities of the parent company, for which recovery is not expected,

are converted to yen using either the rate at the end of the balance sheet date or the

average rate 1 month prior to the end of the balance sheet date, whichever has the

weaker yen. This exchange is recorded under "Loss on valuation of securities."

7.(1)Allowance for doubtful accounts of the parent company is recognized in accordance

with the Company’s internal Asset Valuation Regulation and Write-Off/Provision

Rule.

①The amount of allowance for loans receivable from creditors who are legally or

substantially bankrupt, such as being bankrupt or being in the process of civil

rehabilitation proceedings is recognized based on the amount of credit remaining

after directly deducting amounts expected to be collected through disposal of

collateral or execution of guarantees from the balance of loans receivable (as

mentioned at (4) below).


②The allowance for loans receivable from creditors who are not currently legally

bankrupt but have high possibility of bankruptcy is recognized on the amounts

deemed necessary considering the borrowers’ overall solvency assessment within

the amounts remaining after deductions of amounts expected to be collected

through the disposal of collateral or the execution of guarantees.

③The allowance for loans receivable from creditors other than the above is

provided based on the borrowers’ balance multiplied by the historical average (of

a certain period) percentage of bad debt.

(2)All credits of the parent company are assessed by the sections concerned in

responsible sections in accordance with the Company’s Asset Valuation Regulation.

The assessments are verified by an independent Asset Auditing Department. The

results of the assessments are reflected in the calculation of the allowance for

doubtful accounts.

(3)For consolidated subsidiaries, these companies allocate amounts deemed necessary

in accordance mainly with their internal Asset Valuation Regulation and

Write-Off/Provision Rule.

(4)The amount of collateral value or the amount collectible by the execution of

guarantees or other methods directly subtracted from the balance of loans receivable

is the estimated uncollectible amount for loans (including loans with credits secured

and/or guaranteed) made to legally or substantially bankrupt borrowers. The amount

recognized in the consolidated financial statements is ¥8,243 million (including

¥6,891 million of credits secured and/or guaranteed) as of March 31, 2009.

8.Accrued bonus for directors and corporate auditors is recognized based on the amount

estimated to be paid.

9.(1)Accrued severance indemnities of the parent company are provided based on the

estimated amounts of projected benefit obligations in excess of the market value of

pension plan assets for future severance payments of employees as of the balance

sheet date.

(2)Information relating to retirement allowance payments is as follows.

①Breakdown of retirement benefit obligation as of March 31, 2009：


Million Yen

As of March 31,

2009

a. Retirement Benefit Obligation ¥(777,951)

b. Pension Plan Asset 271,666

c. Accrued Retirement Benefit Costs (506,284)

d. Unrecognized Actuarial Differences 72,341

e. Unrecognized Past Service Cost (6,861)

f. Accrued Severance Indemnities ¥(440,804)

②Basic information for the calculation of accrued severance indemnities is as

follows:

a.Periodical allocation method of

estimated retirement benefit

Straight-line

b.Discount rate 1.6%

c.Expected rate on plan assets 2.5%

d.Method of amortizing actuarial

differences

Amortization is made over a

certain period (5years) using

the straight-line method within

the average remaining years of

service of employees one year

after the accrual of liabilities.

e.Method of amortizing prior service

costs

Amortization is made over a

certain period (5years) using

the straight-line method within

the average remaining years of

service of employees upon

accrual of liabilities.


10.Accrued retirement benefit for directors is an estimated payment amount based on

internal rules.

11.Accrued loss from supporting closely related companies is recognized based on the

amount that is estimated to be required in the future for supporting restructurings of

the closely related companies.

12.Reserve for price fluctuations of security investments is recognized based on Article

115 of the Insurance Business Law.

13.In the past, an accounting treatment based on a method related to ordinary lease

transactions was applied to trading financial leases where ownership is not transferred.

Beginning this period, however, the "Accounting Standards of Lease Transactions"

(Corporate Accounting Standards No.13) and "Application Guidelines for Accounting

Standards of Lease Transactions" (Corporate Accounting Standards Application

Guidelines No.16) is applied.

Based on the new methodology, ¥203 million lease assets and ¥161 million lease

obligation are recorded under liabilities.

Also, ordinary income and pretax net surplus increased by ¥ 120 million.

Regarding financial leases where ownership is not transferred and lease start date is

March 31, 2008 or prior, accounting treatment based on method related to ordinary

lease transactions is applied.

For financial lease transactions where the lessor's ownership is not transferred, we

calculate sales amount and cost of sales at time of receiving lease fee.

14.Hedge accounting of the parent company is calculated by following method.

①Parent Company applies the mark-to-market method of hedge accounting mainly

for hedging activities against exposures to foreign exchange rate fluctuations on

certain bonds denominated in foreign currencies. The Company also applies the

special treatment prescribed under the Accounting Standards for Financial

Instruments for interest swap agreements to manage cash flow volatility associated

with interest rate changes on certain loans receivable. In addition, The Company

matches foreign exchange forward contracts and currency swaps with certain

financial assets denominated in foreign currencies.


②Effectiveness of hedging activities is mainly evaluated by performing a ratio

analysis of market value movement comparisons based on the hedging instruments

and hedging methods taken, which is in accordance with the Company’s internal

risk management policies.

15.Consumption taxes and local consumption taxes of the parent company are accounted

for by using the tax exclusion method. However, consumption taxes paid on certain

real estate transactions, which are not deductible from consumption taxes withheld

and that are stipulated to be deferred under the Consumption Tax Law, are deferred as

prepaid expenses and amortized over a 5 year period on a straight-line basis.

Consumption taxes other than deferred consumption taxes are recorded to expense as

incurred.

16.A policy reserve of the parent company is a reserve set forth in accordance with

Article 116 of the Insurance Business Law. A policy reserve is recognized by

performing a calculation based on the following methodology:

①Reserves for contracts subject to the standard policy reserve are computed in

accordance with the method prescribed by the Prime Minister (the ordinance

No.48 issued by the Ministry of Finance in 1996).

②Reserves for other contracts are computed based on the net level premium

method.

Since fiscal year 2006, additional amounts to the policy reserves have been made

over 5 years to a portion of the individual annuity policyholders. Such treatment

is in accordance with Article 69 paragraph 5 of the Enforcement Regulation of the

Insurance Business Law. As a result of the adoption of the treatment, the policy

reserve is ¥241,261 million as of March 31, 2009.

17.Beginning in this consolidated fiscal year, in accordance with the revised

Enforcement Regulation of the Insurance Business Law, “Tangible fixed assets” and

“Intangible fixed assets” are presented.

Tangible fixed assets included land, buildings, construction in progress, and other

tangible fixed assets investment of ¥1,081,709 million, ¥574,521 million, ¥12,420

million, ¥78,272 million, respectively. Intangible fixed assets included software and

other tangible fixed assets investment of ¥57,244 million, and ¥98,763million,


respectively.

18.(1)The total amount of loans of bankrupt borrowers, delinquent loans, loans that

are delinquent for over 3 months and loans for restructuring, which were included

in loan receivables, is ¥53,081 million as of March 31, 2009.

①The balances of loans of bankrupt borrowers and delinquent loans are ¥3,456

million and ¥39,945 million as of March 31, 2009.

Loans of bankrupt borrowers are loans, except for a portion of loans

written-down, where the borrowers satisfy conditions prescribed in Article 96

Paragraph 1 Item 3 or Item 4 of the Enforcement Regulations of the

Corporation Tax Law. Interest is not accrued as income since the recovery of

principal or interest on the loans is unlikely due to the fact that the principal or

interest payments are long overdue or for other reasons.

Delinquent loans are loans with interest not accrued excluding the loans of

bankrupt borrowers and the loans to which postponement of interest payment is

made with the object of reconstructing and supporting the borrowers.

②There was not a balance of loans that were delinquent for over 3 months as of

March 31, 2009.

Loans that are delinquent for over 3 months are loans with principal or interest

unpaid for over 3 months beginning one day after the due date based on the

loan agreement.

③The balance of loans for restructuring, were ¥9,680 million as of March

31,2009.

Loans for restructuring are loans that provide certain concessions favorable to

borrowers with the intent of supporting the borrowers restructuring, such as by

reducing or exempting interests, postponing principal or interest payments,

releasing credits, and providing benefits to the borrowers. These loans exclude

loans classified as loans to bankrupt borrowers, delinquent loans, and loans

delinquent for over 3 months.

(2)The direct write-off of loans receivable decreased balances of loans of bankrupt

borrowers and delinquent loans by ¥6,099 million, and ¥2,143 million,

respectively, as of March 31, 2009.


19.Total assets within the Separate Accounts as provided for in Article 118 paragraph 1

of the Insurance Business Law are ¥1,371,549 million as of March 31, 2009.

The liability amount is the same as the above.

20.Changes in the reserve for dividends to policyholders included in policy reserves for

the period ended March 31, 2009 are as follows:

Million Yen

As of March 31,2009

Balance at the end of previous fiscal year ¥1,233,268

Transfer to reserves from surplus in

previous fiscal year

226,284

Policyholders dividends paid out in the

current period

(277,367)

Increase in interest 33,206

Balance as of March 31, 2009 ¥1,215,391

21.The amount of assets pledged as collateral by securities, leasing securities, land, and

buildings as of March 31, 2009 is ¥606,018 million, ¥34,044 million, ¥2,952

million, and ¥325 million, respectively. The total amount of loans covered by the

aforementioned assets is ¥502,733 million as of March 31, 2009.

These amounts included ¥531,740 million of securities deposited and ¥470,591

million of cash received as collateral, under the securities lending contracts secured

by cash, as of March 31, 2009.

22.¥50,000 million of foundation funds were additionally offered according to Article 60

of Insurance Business Law.

23.The Company redeemed ¥50,000 million of foundation funds, and credited the same

amount to reserve for redemption of foundation funds provided for in Article 56 of

the Insurance Business Law as of March 31, 2009.

24.The total amount of stocks and investments in non-consolidated subsidiaries is



25.The amount of securities loaned for consumption is ¥1,411,639 million as of March

31, 2009.

26.Assets that can be sold or re-secured are marketable securities loaned under a loan for

consumption contract. As of the end of the period, these assets are being held without

disposal totaled ¥206,962 million at market value as of March 31, 2009.

27.The amount of commitments related to loan receivables and loans outstanding is


28.The amount of future contributions to the Life Insurance Policyholder Protection

Corporation of Japan, in accordance with Article 259 of the Insurance Business

Law, is estimated to be ¥90,467 million as of March 31, 2009.

The contribution amount is also recognized as operating expense at the time of

payment.

29.(1)Total deferred tax assets are ¥1,223,549 million, and total deferred tax liabilities

are ¥212,548 million as of March 31, 2009. Among deferred tax assets, the

deduction for valuation allowance for deferred tax assets is ¥66,575 million. The

major components causing deferred tax assets are policy reserves of ¥700,903

million, accrued severance indemnities of ¥159,247 million, reserve for price

fluctuations of investments of ¥134,330 million, and allowance for doubtful

accounts of ¥10,759 million. The major component causing deferred tax liabilities

is net unrealized gains on securities of ¥172,181 million.

(2)The statutory tax rate was 36.1% for the year ended March 31, 2009. The major

difference between the statutory tax rate and the effective income tax rate is

－22.9％ for the reserve for dividends to policyholders, 5.7% for loss on

valuation of securities, and 3.7% for dividends received from controlled foreign

corporation .


(5) Consolidated Statements of Income(Million Yen)

Year ended March 31, 2008 Year ended March 31, 2009

6,607,597 6,692,862

4,917,492 5,060,302

1,348,505 1,239,667

Interest, dividends, and other income 1,230,756 1,142,142

Gain from proprietary trading securities 7 　　　　　　　　　　　　　　　　　----

Gain on sales of securities 107,006 88,169

Gain from redemption of securities 10,405 5,063

Other investment income 329 4,292

341,599 392,892

6,305,548 6,601,821

4,236,155 4,056,596

Death and other claims 1,395,485 1,314,163

Annuity payments 475,766 506,864

Health and other benefits 845,378 851,235

Surrender benefits 1,166,937 1,102,075

Other refunds 350,997 280,608


392,091 173,550

Provision for policy reserves 356,921 140,343

Interest on reserve for dividends to policyholders 35,170 33,206

563,110 1,268,196

Interest expense 7,506 4,791

Loss on proprietary trading securities 　　　　　　　　　　　　　　　　　---- 0

Loss from investment of assets held in trust 20,866 54,967

Loss on sales of securities 93,466 131,964

Loss on valuation of securities 40,194 532,044

Loss from redemption of securities 2,950 6,240

Loss from derivative financial instruments, net 66,639 116,658

Foreign exchange loss, net 12,167 15,927

Provision for allowance for doubtful accounts 5,672 　　　　　　　　　　　　　　　　　----

Write-down of loans 172 213

Depreciation for rental real estate and other assets 27,331 27,160

Other investment expenses 20,868 25,441

Loss from separate accounts, net 265,274 352,786

579,641 583,788

534,550 519,689

302,048 91,041

1,200 126,521

Gain on disposal of fixed assets 1,200 1,083

Reversal of price fluctuations of security investments 　　　　　　　　　　　　　　　　　---- 115,250

Reversal of allowance for doubtful accounts 　　　　　　　　　　　　　　　　　---- 10,187

33,054 11,471

Loss on disposal of fixed assets 7,242 3,760

Impairment loss 4,630 5,977

Provision for reserve of security price fluctuations 20,000 　　　　　　　　　　　　　　　　　----

Loss on reduction entry of real estate 128 256

Others 1,053 1,477

270,194 206,090

112,679 2,896

-101,711 50,526

10,967 53,423

649 573

258,577 152,093

Operating income

Extraordinary profits:

Income tax -current

Income tax -deferred

Minority interests

Surplus in the current year

Extraordinary loss:

Surplus before income tax

Income tax-total

Insurance claims and other payments:

Provision for policy reserves:

Other expenditures

Operating expenses

Investment expenses:

Expenditures:

Other revenues

Income from insurance and reinsurance premiums

Investment income:

Revenues:


Notes to the Consolidated Statement of Income

1.Benefit cost of accrued severance indemnities for the year ended March 31, 2009 was

analyzed as follows:

Million Yen

Year ended March 31,

2009

Service cost ¥26,635

Interest cost 12,611

Expected return on plan assets (7,538)

Amortization of actuarial differences 17,790

Amortization of prior service cost (7,548)

Others 1,900

Net periodic benefit cost ¥43,850

2.Loss on Impairment of Asset

①Method for grouping the assets

Leased property and idle property are classified as one group per structure. Assets

utilized for insurance business operations are classified into one group.

②Circumstances causing impairment losses

The Company observed a marked decrease of profitability or fair value in some of

the fixed asset groups. The book value of fixed assets was reduced to the

recoverable amount and an impairment loss was recognized as an extraordinary loss.


③Asset groups that recognized an impairment losses with amount and breakdown:

Million Yen

Purpose of use Land Leasehold Buildings Total

Leased

Property

¥330 ¥423 ¥30 ¥785

Idle Property ¥3,607 - ¥1,585 ¥5,192

Total ¥3,937 ¥423 ¥1,616 ¥5,977

④Calculation method of recoverable amount

The recoverable amount used for the measurement of impairment loss on leased

property is determined at net realizable value upon sales of the asset or the future

cash flows. The recoverable amount for idle property is determined at the net

realizable value upon sales of the asset. The discount rate used for calculation of

future cash flows is 4%. Net realizable values are determined based on the real

estate appraisal or posted land price.


(6)Consolidated Statement of Cash Flows for the the Fiscal Year Ended March 31, 2009(Million Yen)

Year ended March 31,2009

Ⅰ. Cash flows from operating activities:

Surplus before income taxes in the fiscal year ended March 31,2009 206,090

Depreciation for rental real estate and other assets 27,160

Depreciation 44,566

Impairment loss 5,977

Net decrease in reserve for outstanding claims -15,019

Net increase in policy reserve 140,499

Interst on reserve for dividends to policyholders 33,206

Net decrease in allowance for doubtful accounts -10,963

Net decrease in reserve for bonus for directors and corporate auditors -22

Net increase in accrued severance indemnities 5,446

Net increase in accrued retirement benefit for directors 192

Net decrease in reserve of security price fluctuations -115,250

Interest, dividend and other income -1,142,142

Net loss from assets held in trust 54,967

Net loss on securities investment 577,080

Net loss of policy loans 253,292

Loss on derivative financial instruments 116,658

Interest expense 4,791

Foreign exchange loss 15,927

Net losses on tangible fixed assets investment 2,933

Investment loss on equity method 2,386

Loss from separate accounts, net 352,786

Net decrease in reinsurance receivables 338

Net increase in other assets (excluding related to investing activities and financing activities) -3,248

Net increase in reinsurance payables 1

Net increase in other liabilities (excluding related to investing activities and financing activities) 9,058

Other, net -29,885

Subtotal 536,831

Interest, dividend and other income received 1,164,940

Interest paid -5,236

Dividends to policyholders paid -224,679

Other, net 12,919

Income taxes paid -88,828

Net cash provided by operating activities 1,395,946

Ⅱ. Cash flows from investing activities:

Net decrease in deposits -1,400

Purchases of monetary receivables purchased -103,755

Proceeds from sales and redemption of monetary receivables purchased 98,958

Purchases of securities -11,901,539

Proceeds from sales and redemption of securities 10,110,478

Investments in loans -1,526,277

Collections of loan 1,725,834

Income from the settlement of financial derivative instruments 109,461

Net decrease cash received as collateral under security lending contracts -122,611

Other, net -1,100

Investment Management Activity Total -1,611,951

(Operating activities and Investment Management activities total) (-216,004)

Purchases of tangible fixed assets -59,975

Proceeds from sales of tangible fixed assets 3,631

Other, net -38,316

Net cash used in investing activities -1,706,612

Ⅲ. Cash flows from financing activities:

Proceeds from debt issuance 133,799

Repayments of debt -138,008

Proceeds from solicitation of foundation funds 50,000

Redemption of Foundation funds -50,000

Interest on foundation funds -2,501

Other, net -1,069

Net cash used in financing activities -7,780

Ⅳ. Effect of exchange rate changes on cash and cash equivalents -19,889

Ⅴ. Net decrease in cash and cash equivalents -338,335

Ⅵ. Cash and cash equivalents at the beginning of the year 1,294,607

Ⅶ. Decrease in cash and cash equicvalents due to the exclusion of subsidaries from the consolidation -3,511

Ⅷ. Cash and cash equivalents at the end of March, 2009 952,759


Basis of Presenting the Consolidated Cash Flows Statement

Cash and cash equivalents

Cash and cash equivalents, for the purpose of reporting consolidated cash flows, are

composed of cash in hand, deposits held at call with banks and all highly liquid

short-term investments with a maturity of three months or less when purchased and

which are readily convertible into cash and present insignificant risk of change in value.


(7)．Consolidated Statements of Changes in Net Assets(Million Yen）

Foundation funds and others Valuation,Conversion, and othersFoundation funds Net unrealized gain on securities,net of tax

Beginning balance 250,000 200,000 Beginning balance 4,670,620 2,301,439Increase/Decrease Increase/Decrease

Issuance of foundation funds ----- 50,000 Net change,excluding Foundation funds and others -2,369,180 -2,047,746Redemption of foundation funds -50,000 -50,000 Net change -2,369,180 -2,047,746Net change -50,000 ----- Ending balance 2,301,439 253,693

Ending balance 200,000 200,000 Deferred gain on derivatives under hedge accountingReserve for redemption of foundation funds Beginning balance 57 155

Beginnig balance 650,000 700,000 Increase/DecreaseIncrease/Decrease Net change,excluding Foundation funds and others 98 -149

Additions to reserve for redemption of fundation funds 50,000 50,000 Net change 98 -149Net change 50,000 50,000 Ending balance 155 6

Ending balance 700,000 750,000 Land revaluation differenceReserve for revaluation Beginning balance -84,955 -88,938

Beginnig balance 651 651 Increase/DecreaseIncrease/Decrease Net change,excluding Foundation funds and others -3,983 -2,067

Net change ----- ----- Net change -3,983 -2,067Ending balance 651 651 Ending balance -88,938 -91,006

Surplus Cumulative translation adjustmentsBeginning balance 501,357 473,978 Beginning balance -7,615 -16,157Increase/Decrease Increase/Decrease

Additions to reserve for dividends to policyholders -239,686 -226,284 Net change,excluding Foundation funds and others -8,542 -29,990Additions to reserve for redemption of foundation funds -50,000 -50,000 Net change -8,542 -29,990Interest on foundation funds -3,119 -2,501 Ending balance -16,157 -46,148Net surplus 258,577 152,093 Total valuation, conversion and othersReversal of land revaluation difference 3,963 2,058 Beginning balance 4,578,106 2,196,499Net increase from loss of equity method affiliate 2,885 ----- Increase/DecreaseOthers 1 ----- Net change,excluding Foundation funds and others -2,381,607 -2,079,954Net change -27,378 -124,634 Net change -2,381,607 -2,079,954

Ending balance 473,978 349,344 Ending balance 2,196,499 116,544Total foundation funds and others Minority interests

Beginning balance 1,402,008 1,374,629 Beginning balance 10,479 9,954Increase/Decrease Increase/Decrease

Issuance of foundation funds ----- 50,000 Net change,excluding Foundation funds and others -525 249Additions to reserve for dividends to policyholders -239,686 -226,284 Net change -525 249Interest on foundation funds -3,119 -2,501 Ending balance 9,954 10,203Net surplus 258,577 152,093 Total net assetsRedemption of foundation funds -50,000 -50,000 Beginning balance 5,990,595 3,581,082Reversal of land revaluation difference 3,963 2,058 Increase/DecreaseNet increase from loss of equity method affiliate 2,885 ----- Issuance of foundation funds ----- 50,000Others 1 ----- Additions to reserve for dividends to policyholders -239,686 -226,284Net change -27,378 -74,634 Interest on Foundation funds -3,119 -2,501

Ending balance 1,374,629 1,299,995 Net surplus 258,577 152,093Redemption of foundation funds -50,000 -50,000Reversal of land revaluation difference 3,963 2,058Net increase from loss of equity method affiliate 2,885 ----- Others 1 ----- Net change,excluding Foundation funds and others -2,382,133 -2,079,705Net change -2,409,512 -2,154,339

Ending balance 3,581,082 1,426,743






(8) Status of Non-Performing Assets According to Borrower's Classification (Consolidated)(100 Million Yen,%)

As of March 31, 200８ As of March 31, 200９138 136

Doubtful Loans 442 297 Substandard Loans 166 96

747 530 (Percent of Total,%) ( 0.63) ( 0.50) Normal Loans 118,060 104,669 Total 118,808 105,200

Notes:

(9) Status of Risk-Managed Loans (Consolidated)(100 Million Yen, %)


Loans to bankrupt borrowers 34 34

Deliquent Loans 546 399

Loans that are delinquent for over three months 4 -----

Loans for Restructuring 162 96

Total (b) 747 530

[Percent of total loans receivable](%) ( 0.79) ( 0.59) Notes

(Information) Status of Allowance and Secured amount (100 Million Yen)

As of March 31, 2008 As of March 31, 2009 Allowance for doubtful accounts (c) 393 252 Coverage ratio for loans by borrower classification (c)/(a) 52.5% 47.5% Coverage ratio for risk managed loans (c)/(b) 52.6% 47.5%

Secured amount (d) 734 526 Amount secured by collateral and/or guarantee 588 488 Allowance for doubtful accounts 145 38

Total coverage ratio (d)/(a) 98.2% 99.3% Note: The allowance for doubtful accounts used to calculate the total coverage ratio is the total amount of specific allowance for doubtful accounts and general allowance for substandard loans.

Bankrupt and Quasi-Bankrupt Loans

Subtotal (a)

1. Bankrupt and quasi-bankrupt loans are non-performing assets that have fallen into bankruptcy due to reasons including initiation of bankruptcy proceedings, start of reorganization proceedings, and submission of an application to start rehabilitation proceedings.2. Doubtful loans are non-performing assets with a strong likelihood that loan principal or interest cannot be recovered according to the contract, although the obligor has not yet entered into bankruptcy, but because of difficulties in financial condition and business performance of the obligor.3. Substandard loans include loans that are delinquent for over three months or loans for restructuring. Loans that are delinquent for over three months are loans with principal or interest being unpaid for over three months counting from the day after the due date based on the loan agreement (excluding 1) and 2) above). Loans for restructuring are loans that provide certain concessions favorable to the borrower with the intent of supporting the borrower's company restructuring. Examples of such consessions include reducing or exempting interests, postponing principal or interest payments, releasing credits, and providing other benefits to the borrowers (excluding 1), 2) from above, and loans that are delinquent for over three months).4. Normal loans are loans that do not fall under the classifications for 1) to 3)above, and where the obligor has no financial or business performance problems.

1. For loans to bankrupt borrowers and quasi-bankrupt borrowers (including collateralized and guaranteed loans), an estimated uncollectible amount (calculated by subtracting estimated collectable amounts based on collateral and guarantees from the total loans) is directly deducted from total loan amount. The amount of loans to bankrupt borrowers and delinquent loans are ¥6.0 billion and ¥2.1 billion as of March 31, 2009; ¥1.2 billion and ¥5.0 billion as of March 31, 2008.2. Loans to bankrupt borrowers are loans of the following with principal and interest payments being long overdue and interest not being accrued: (a) Borrowers to borrowers that are legally bankrupt through filings for proceedings under the Corporate Reorganization Law, Civil Rehabilitation Law, Bankruptcy Law, or Company Law, (b) Borrowers to borrowers that have notes suspended from being traded, and (c) Borrowers to borrowers that have filed for legal proceedings similar to the aforementioned proceedings based on overseas laws .3. Delinquent loans are loans for which interest is not being accured on the balance sheet, which excludes aforementioned items 1) and 2) and loans for restructuring.4. Loans that are delinquent for over three months are loans with principal or interest unpaid for over three months counting from the day after the due date based on the loan agreement. Note that the account does not include "Loans to bankrupt borrowers" and "Delinquent Loans".5. Loans for restructuring are loans that provide certain concessions favorable to the borrower with the intent of supporting the borrower's company restructuring, such as by reducing or exempting interests, postponing principal or interest payments, releasing credits, and providing other benefits to the borrowers (excluding 1), 2) from above, and loans that are delinquent for over three month).


<Nissay Dowa General Insurance Company, Limited> (Million Yen)


509,138 386,106

163,380 153,442

7,050 607

147 176

132,279 135,350

65 56

150,665 39,305

13,053 20,129

---- ----

---- ----

---- ----

42,495 37,035

Underwriting risk(R１) 19,927 19,996

Underwriting risk of third market insurance(R２) ---- ----

Anticipated yield risk(R３) 1,136 1,089

Investment risk(R４) 43,716 32,583

Business management risk(R5) 2,205 3,052

Calamity risk(R6） 45,495 48,090

（11）Segment Information

（10） Status of Insurance Claims Paying Ability of Insurance Subsidiaries (Solvency Margin Ratio)

Qualifying subordinated debt

Reserve for price fluctuations of investments in securities

Contingency reserve

Catastrophe loss reserve

General allowance for doubtful accounts

Net unrealized gain/loss on securities (Prior to tax effectdeductions)

Net unrealized gain/loss on real estate

Surrender value reserve surplus

(A) Solvency Margin Gross Amount

Capital and Foundation Funds

855.1%

(C)Solvency margin ratio

(A)

(B)×(1/2)

From fiscal year 2007 to fiscal year 2008, Nippon Life, its consolidated subsidiaries and its subsidiaries haveengaged in businesses including the acquisition, management, sale, and mortgaging of real estate for lease otherthan life insurance business. Segment information is omitted due to its immaterial impact relative to all businesssegments.

Deductions

Others

96,780 90,305(B) Total amount of risk

The aforementioned amounts and figures are calculated based on Article 86 and Article 87 of the EnforcementRegulation of the Insurance Business Law, as well as the Ordinance No. 50 issued by the Ministry of Finance in1996.

Notes:

1,052.1%×100

(R1 + R2) + (R3 + R4 ) + R5 + R62 2


Documents

Financial Results for the Year Ended March 31, 2009 · 2010. 3. 5. · May 29, 2009 [Contents] Financial Summary for the Year Ended March 31, 2009 1. Business Highlights ･･････P.1