LIFE INSURANCE BUSINESS IN JAPAN · Life Insurance Business in Japan at a Glance Number of Companies 41 Companies － Domestic company: 25 － Subsidiary of foreign company: 13 －

LIFE INSURANCE BUSINESS IN JAPAN

The Life Insurance Association of Japan

2015-2016

Life Insurance Business in Japan at a Glance

Number of Companies 41 Companies

－Domestic company: 25 －Subsidiary of foreign company: 13 －Branch of foreign company: 3

(As of December 31, 2016)

Life Insurance Ownership Rate per Household(b)

89.2% －Number of policies owned by household: 3.8 －Death benefit amount of coverage per

household: 24.2 million yen －Annual premium payment per household: 385 thousand yen (Figures include Postal Insurance, Japan Agricultural Cooperatives

etc.)

Ordinary Profit(a)

2,768 billion yen

Number of Life Insurance Solicitors(a)

－Tied sales agents: 229,668 －Sales representatives at agencies:

999,218

Figures are for fiscal 2015 unless otherwise stated. Sources: (a) Life Insurance Association of Japan "Summary of Life Insurance Business" (b) Japan Institute of Life Insurance "FY2015 Survey on Life Insurance in Japan" (c) Swiss Re "Sigma 3/2016" (d) National Institute of Population and Social Security Research

Premium Income 37,748 billion yen(a)

－Second largest in the world(c)

Number of Policies in Force (Individual Insurance)(a)

160 million

Whole Life

Insurance21.3%

Medical Insurance

21.0%

Cancer Insurance

14.5%

Term Insurance

12.4%

Endowment

Insurance8.4%

Whole Life with

Term Rider6.5%

Others15.9%

Insurance Benefits Paid

34,952 billion yen (fiscal 2014)(a)

…equivalent to 31.1% of Social Security Benefits(d)

Total Assets(a)

367,167 billion yen

Securities82%Loans

9%

Cash, Deposits

and Savings

2%

Tangible Fixed

Assets2%

Monetary Trusts

1%

Call Loans

0% Others4%

Government

Bonds49%

Local Governm

ent Bonds

5%

Corporate Bonds

8%

Stocks7%

Foreign Securitie

s26%

OtherSecuritie

s5%

- Corporate agencies: 35,199 offices

- Individual agencies: 57,786 offices

Breakdown of Securities

Contents

1. Life Insurance in Numbers ················································································· 2 2. The LIAJ's Topics for Fiscal 2015 ······································································· 35

a) Recommendation on the establishment of "Longevity Pension" ································· 35 b) Promotion of Insurance Education ······································································ 36

3. The Life Insurance Association of Japan ····························································· 38 a) Basic Information ···························································································· 38 b) The LIAJ's Main Activities for Fiscal 2015 ····························································· 43

I) Activities to provide information and promote understanding on the life insurance business ································································································ 43

II) Consultation services, complaint processing and dispute resolution operations regarding life insurance ············································································· 43

III) Activities regarding systems and measures to ensure appropriate operation of the life insurance business ·············································································· 45

IV) Activities regarding education and training for the staff of member companies ······· 49 VI) Activities regarding making requests and proposals to relevant authorities,

agencies and organizations ········································································ 51 VII) Activities to fulfill social responsibilities ························································· 52

Note: In this document, the LIAJ's activities are categorized in accordance with its Business Plan for Fiscal Year 2015. This “Life Insurance Business in Japan” does not specifically introduce (V) Research and study activities regarding the theory and practice of life insurance and (VIII) Other activities considered necessary to achieve the goals of the LIAJ.

LIAJ Business in Japan 2015/2016

2

Life Insurance in Numbers

(Reprint of Life Insurance Fact Book(2016))

The Life Insurance Association of Japan

1. Life Insurance in Numbers

LIAJ Business in Japan 2015/2016 3

Introduction

The Life Insurance Fact Book summarizes key performance indicators of life insurance companies operating in Japan. We hope that this report will provide a better understanding of the life insurance business in Japan.

Please note that the data of Japan Post Insurance has been included in the figures since fiscal 2008; therefore, some figures show the data excluding Japan Post Insurance in order to maintain continuity with the previous data before its inclusion.

In addition to this report, the LIAJ provides detailed statistical data of the life insurance market in Japan; please refer to such data as necessary.



4

Contents

Highlights of Business Results ······················································································· 5

I Underwriting Results ···························································································· 7 1. Insurance Products for Individual ·········································································· 7

(1) Individual Insurance ······················································································· 7 (2) Individual Annuity Insurance ·········································································· 10 (3) Annualized Premium ···················································································· 12 (4) Hospitalization and Surgery Protection ····························································· 13 (5) Statistical Data by Gender, Age and Prefecture ················································· 14

2. Insurance Products for Groups ··········································································· 18 (1) Group Insurance ························································································· 18 (2) Group Annuity Insurance ··············································································· 21

II Profit and Loss ·································································································· 22 1. Insurance Related Profit and Loss ······································································ 22

(1) Premium Income ························································································· 22 (2) Insurance Benefits Paid ················································································ 23

2. Investment Income and Expenses ······································································ 25 3. Operating Expenses ························································································ 27 4. Ordinary Profits and Basic Profits ······································································· 27

III Investment Results ···························································································· 28 1. Total Assets ···································································································· 28 2. Securities ······································································································ 29 3. Loans············································································································ 30 4. Tangible Fixed Assets (Real Estate) ···································································· 32

IV Liabilities and Net Assets ···················································································· 32

Reference ················································································································ 33 Distribution Channels and Sales Force ···································································· 33 Member Companies ····························································································· 34



Highlights of Business Results- The Trend of Individual Insurance Policies -

As of the end of fiscal 2015, the amount of policies in force (the amount of major protections such as death protection) for individual insurance was 858 trillion yen and increased from the previous year for the first time in 19 years. This is particularly due to the increasing sales of single-premium products for whole life variable insurance etc. and decreases in lapses, surrenders and "decrease caused by the conversion". The amount of policies in force for individual insurance had been decreasing after reaching a peak at 1,495 trillion yen at the end of fiscal 1996. However, the decreasing trend slowed down around fiscal 2008 and recent years, the amount has been remaining on the same level.

The number of policies in force as of the end of fiscal 2015 was 160.11 million, increasing for the eighth successive year. While the number of policies in force had decreased after reaching a peak at 130.71 million in fiscal 1995 to 109.34 million in fiscal 2003, it started to increase thereafter and has been setting new highs every year since fiscal 2012. Among others, the number of policies with benefits for hospitalization or surgery and medical and cancer insurance has been increasing steadily, reflecting the growing needs of third-sector products (such as medical insurance and long-term care insurance). (See: pages 7 to 9)

As to the annualized premium (the amount of premium income which a life insurer would receive in one year, under the assumption that premium is equally divided and paid throughout the entire contract period) of policies in force, it amounted to 26.1 trillion yen (including 5.9 trillion yen for "third-sector") at the end of fiscal 2015, increasing

steadily since fiscal 2006 when the record started. Due to the increase in insurance products with small amount of policies such as medical insurance, annualized premium is positioned as an indicator that complements the amount of policies.

(See: page 12)

Note: The amount of annualized premium of "third-sector" includes the amount of premium to be allocated for paying medical coverage (e.g. benefits for hospitalization/surgery), living benefits (e.g. benefits for specified disease/long-term care), and premium waiver benefits (e.g. benefits due to specified disease or long-term care, but excluding disability).

19.4 19.8 20.4 21.3 21.7 22.7 23.8 24.4 25.2 26.1

4.4 4.5 4.7 4.8 5.0 5.2 5.3 5.5 5.7 5.9

0.0

5.0

10.0

15.0

20.0

25.0

30.0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

(trillion yen)Annualized Premium of Policies in Force

"Third-Sector"

Note: Including individual annuity insurance

1,3811,469 1,462

1,3641,255

1,1521,070

981902 865 857 858

0

20

40

60

80

100

120

140

160

180

0

200

400

600

800

1,000

1,200

1,400

1,600

1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015

(trillion yen)

Amount of Policies in Force

Number of Policies in Force

(million)



6

- Major Business Results -

○The amount 1 and the ratio 2 of lapses and surrenders for individual insurance has been decreasing. (See: pages 7 and 9)

○The amount of new policies for individual insurance increased for the second successive year. (See: pages 7 and 8)

○Premium income was the highest ever. (See: page 22)

1 Amount of lapses and surrenders = ( lapses + surrenders + total of decrease in amount of a policy) - (reinstatements + total of increase in amount of a policy)2 Ratio of lapses and surrenders = ( amount of lapses and surrenders / amount of policies in force at the beginning of fiscal year )* 100%

60,018 billion yen 56,927 billion yen 53,676 billion yen 52,471 billion yen

Amount of lapses and surrenders

50,296 billion yen

6.8% 6.6%6.2% 6.1%

Ratio of lapses and surrenders

5.9%

2011 2012 2013 2014 2015

65,601 billion yen71,345 billion yen

66,836 billion yen 67,431 billion yen

69,333 billion yen

2011 2012 2013 2014 2015

2011 2012 2013 2014 2015

34,738 billion yen37,222 billion yen

37,748 billion yen36,289 billion yen 37,140 billion yen



I. Underwriting Results 1. Insurance Products for Individual3(1) Individual Insurance

New Policies

The number of new policies for individual insurance (including converted contracts) was 19.88 million (102.5% y/y), and the amount of new policies4 (reflecting the net increase arising from the conversion) was 69,333 billion yen (102.8% y/y). [Figure 1]

The number of new policies has been increasing since fiscal 2008 due to increasing sales of medical insurance and whole life insurance. While in fiscal 2013, the number of new policies decreased from the previous year in reaction to strong sales in fiscal 2012 prior to the reduction in the standard assumed interest rate, it increased for the second successive year in fiscal 2015.

The amount of new individual insurance policies has also been increasing recent years. While in fiscal 2013, it decreased from the previous year, it increased for the second successive year in fiscal 2015.

By type of new policies for individual insurance (excluding converted contracts), medical insurance ranked top in number (3.62 million, 22.9% of the total), followed by whole life insurance (3.57 million, 22.5%), cancer insurance (2.24 million, 14.2%), term insurance (2.12 million, 13.4%) and endowment insurance (1.46 million, 9.2%), with the ranks switched between cancer insurance and term insurance from the previous year. [Figure 2]

Of the total amount of new policies for individual insurance (excluding converted contracts), term insurance ranked top (31,880 billion yen, 43.5% of the total), followed by whole life insurance (15,538 billion yen, 21.2%), endowment insurance (4,964 billion yen, 6.8%), variable insurance (2,486 billion yen, 3.4%) and whole life insurance with variable accumulation rate (2,458 billion, 3.4%). [Figure 3]

Policies in Force

The number of policies in force for individual insurance was 160.11 million (105.5% y/y), and the amount of policies in force was 858,604 billion yen (100.1% y/y). [Figure 1]

The number of policies in force increased for the eighth successive year due to the strong sales of new policies. Although the amount of policies in force had been decreasing due to the current trend of increasing medical protection while reducing death protection, it increased from the previous year for the first time in 19 years in fiscal 2015.

As for the number of policies in force for individual insurance, whole life insurance ranked top (34.10 million, 21.3% of the total), followed by medical insurance (33.70 million, 21.1%), cancer insurance (23.14 million, 14.5%), term insurance (19.89 million, 12.4%), endowment insurance (13.41 million, 8.4%) and whole life insurance with term rider (10.41 million, 6.5%), with the ranks switched between whole life insurance and medical insurance. [Figure 4]

Of the total amount of policies in force for individual insurance, term insurance ranked top (252,132 billion yen, 29.4% of the total), followed by whole life insurance(167,174 billion yen, 19.5%), whole life insurance with term rider (136,835 billion yen, 15.9%), whole life insurance with variable accumulation rate (80,667 billion yen, 9.4%) and endowment insurance (43,630 billion yen, 5.1%). [Figure 5]

Lapses and Surrenders

The amount5 and the ratio6 of lapses and surrenders for individual insurance were 50,296 billion yen (95.9% y/y) and 5.9% (down 0.2 points from the previous year). [Figure 6]

The amount and the ratio of lapses and surrenders decreased for the fourteenth successive year and seventh successive year, respectively.

3 The business result of individual insurance and individual annuity insurance includes those policies under which policyholder is a corporate body and the insured is a member of the management (so-called "key person insurance").

4 The amount of major protections such as a death protection.5 Amount of lapses and surrenders = ( lapses + surrenders + total of decrease in amount of a policy) - (reinstatements + total of increase in amount of a policy)6 Ratio of lapses and surrenders = ( amount of lapses and surrenders / amount of policies in force at the beginning of fiscal year )* 100%



8

Figure 1: New Policies and Policies in Force for Individual Insurance

Figure 2: Changes in Individual Insurance by Type (Number of New Policies)

Figure 3: Changes in Individual Insurance by Type (Amount of New Policies)

Y/Y Y/Y Y/Y Y/Y2011 16.22 102.3 65,601 104.1 127.20 104.3 865,346 98.42012 19.67 121.3 71,345 108.8 136.01 106.9 861,651 99.62013 18.99 96.5 66,836 93.7 143.88 105.8 857,540 99.52014 19.39 102.1 67,431 100.9 151.73 105.5 857,432 100.02015 19.88 102.5 69,333 102.8 160.11 105.5 858,604 100.1

Below are f igures excluding Japan Post Insurance.2011 14.09 102.1 59,386 104.0 119.19 103.0 842,303 97.72012 17.47 124.0 64,829 109.2 126.14 105.8 833,170 98.92013 16.76 95.9 60,276 93.0 132.21 104.8 823,805 98.92014 17.01 101.5 60,428 100.3 138.19 104.5 818,273 99.32015 17.48 102.7 62,165 102.9 144.76 104.8 814,197 99.5

Note: The number includes converted contracts, and the amount ref lects the net increase arising f rom the conversion.

(Number: million, Amount: billion yen, Y/Y: %)New Policies Policies in Force

Number Amount Number Amount

3.53 3.87 3.37 3.47 3.57

0.51 0.28 0.23 0.15 0.140.31 0.34 0.39 0.31 0.311.23

2.14 2.22 2.24 2.120.05

0.06 0.09 0.17 0.391.781.74 1.66 1.34 1.46

3.353.64 3.83 3.81 3.62

1.561.42 1.39 1.77 2.240.660.64 0.56 1.01 0.84

0.35

0.71 0.620.73

1.13

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

2011 2012 2013 2014 2015

(million)Others

Juvenile Insurance

Cancer Insurance

Medical Life Insurance

Endowment Insurance

Variable Insurance

Term Insurance

Whole Life with Variable Accumulation RateWhole Life with Term Rider

Whole Life Insurance

13.3914.89 14.40 15.05

15.85

Note: Excluding converted contracts

15.1 17.4 14.5 15.2 15.5

8.1 3.9 2.4 1.6 1.2

3.0 2.6 3.6 2.9 2.4

24.3 31.4 29.0 31.0 31.8

0.4 0.4

0.6 1.0 2.4 5.7 5.6

5.3 4.6 4.9 0.2

0.2 0.2 0.2 0.1

0.03 0.01

0.01 0.02 0.02 1.4

1.3 1.2 2.2 2.0

9.2 9.9

10.4 10.6 12.5

0

10

20

30

40

50

60

70

80

2011 2012 2013 2014 2015

(trillion yen)Others

Juvenile Insurance

Cancer Insurance


Endowment Insurance

Variable Insurance

Term Insurance



73.267.7

73.269.9

67.7




Figure 4: Changes in Individual Insurance by Type (Number of Policies in Force)

Figure 5: Changes in Individual Insurance by Type (Amount of Policies in Force)

Figure 6: Changes in Amount and Ratio of Lapses and Surrenders of Individual Insurance

23.16 26.42 29.01 31.51 34.1012.81 12.29 11.66 10.99 10.417.80 7.58 7.51 7.07 6.7512.04 14.32 16.52 18.44 19.891.45 1.47 1.51 1.63 1.9810.78

11.60 12.38 12.84 13.4125.5327.78

29.98 31.94 33.7019.8420.54

21.1621.97

23.14

5.665.88

6.036.65

7.15

8.088.09

8.078.63

9.54

0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

180.00

2011 2012 2013 2014 2015

(million )Others

Juvenile Insurance

Cancer Insurance


Endowment Insurance

Variable Insurance

Term Insurance



127.20136.01

143.88151.73

160.11

120 135 146 157 167

213 194 174 154 136

125 112 104 91 80

184 204 220 237 252

9 10 10 11 1235 38 40 42 43

4 4 4 4 4

2 2 2 2 2

13 13 13 14 15154 145 139 141 143

0

200

400

600

800

1,000

2011 2012 2013 2014 2015

(trillion yen) Others

Juvenile Insurance

Cancer Insurance


Endowment Insurance

Variable Insurance

Term Insurance



865 858857857861

60,018 56,927 53,676 52,471 50,296

6.8 6.66.2 6.1 5.9

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

0

20,000

40,000

60,000

80,000

100,000

2011 2012 2013 2014 2015

(%)(billion yen)



10

(2) Individual Annuity Insurance New Policies The number and the amount7 of new policies for individual annuity insurance were 1.53 million (96.3% y/y) (including converted contracts) and 8,326 billion yen (96.5% y/y) (reflecting the net increase arising from the conversion), decreasing both in number and in amount from the previous year. [Figure 7] Of all the new policies for individual annuity insurance (excluding converted contracts), the number of fixed individual annuity insurance was 1.29 million (85.0% of the total) and that of variable individual annuity insurance was 0.22 million (15.0%) in fiscal 2015. The ratio of variable individual annuity insurance to the total number of new policies had been rising after fiscal 2012; however, it declined from the previous year in fiscal 2015. [Figure 8] Of all the new policies for individual annuity insurance (excluding converted contracts), the amount of fixed individual annuity insurance was 6,964 billion yen (83.4% of the total) and that of variable individual annuity insurance was 1,390 billion yen (16.6%). [Figure 9] Policies in Force The number and the amount8 of policies in force for individual annuity insurance as of fiscal 2015 were 20.75 million (101.3% y/y) and 103,595 billion yen (99.5% y/y). [Figure 7] The number of policies in force turned upward in fiscal 2003 due to the lifting of restrictions on sales of bancassurance. In fiscal 2015, it increased from the previous year for the thirteenth successive year and has been setting new highs every year since fiscal 2006; however, the amount decreased from the previous year for the first time in 13 years. As for the number of policies in force for individual annuity insurance, that of fixed individual annuity insurance was 18.33 million (88.3% of the total) and that of variable individual annuity insurance was 2.42 million (11.7%). [Figure 10] Of all the amount of policies in force for individual annuity insurance, fixed individual annuity insurance accounted for 89,675 billion yen (86.6% of the total) and variable individual annuity insurance for 13,919 billion yen (13.4%). [Figure 11] Lapses and Surrenders The amount9 and the ratio10 of lapses and surrenders for individual insurance were 3,630 billion yen (74.2% y/y) and 4.1% (down 1.3 points from the previous year). [Figure 12]

Figure 7: New Policies in Force for Individual Annuity Insurance

7 The amount of the annuity reserve (the total annuity amount that will be paid in the future, after being converted to the value at the time of start of annuity payment).

8 The amount is the annuity reserve (the total annuity amount that will be paid in the future, after converted to the value at the time of the start of annuity payment) as to the contracts before the start of annuity payment, and the amount of policy reserves (reserves accumulated for future payments) as to the contracts after the start of annuity payment.

9 Amount of lapses and surrenders = ( lapses + surrenders + total of decrease in amount of a policy) - (reinstatements + total of increase in amount of a policy). Note that this includes only the contracts before the start of annuity payment, and

the contracts after the start of annuity payment are excluded.10 Ratio of lapses and surrenders = ( amount of lapses and surrenders / amount of policies in force at the beginning of fiscal year (only

includes the contracts before the start of annuity payment) )* 100%

(Number: m illion, Am ount: billion yen, Y/Y: %)

Y/Y Y/Y Y/Y Y/Y2011 1.58 110.0 7,899 114.6 19.75 104.0 98,915 103.32012 1.65 103.9 8,563 108.4 20.42 103.4 103,518 104.72013 1.50 91.4 8,003 93.5 20.47 100.2 103,788 100.32014 1.59 106.0 8,632 107.9 20.50 100.1 104,131 100.32015 1.53 96.3 8,326 96.5 20.75 101.3 103,595 99.5

2011 1.37 114.5 7,177 118.2 18.86 103.1 96,133 102.82012 1.46 106.6 7,929 110.5 19.37 102.7 100,323 104.42013 1.35 92.6 7,479 94.3 19.28 99.6 100,344 100.02014 1.46 107.5 8,138 108.8 19.18 99.5 100,515 100.22015 1.47 101.0 8,106 99.6 19.39 101.1 100,118 99.6

Below are f igures excluding Japan Post Insurance.

Note: The number includes converted contracts, and the amount ref lects the net increase arising f rom the conversion.

New Policies Policies in ForceNumber Amount Number Amount



Figure 8: Changes in Individual Annuity Insurance by Type (Number of New Policies)

Figure 9: Changes in Individual Annuity Insurance by Type (Amount of New Policies)

Figure 10: Changes in Individual Annuity Insurance by Type (Number of Policies in Force)

Figure 11: Changes in Individual Annuity Insurance by Type (Amount of Policies in Force)

Figure 12: Changes in Amount and Ratio of Lapses and Surrenders of Individual Annuity Insurance

1.48 1.50 1.30 1.30 1.29

0.07 0.09 0.16 0.26 0.22

0.00 0.30 0.60 0.90 1.20 1.50 1.80

2011 2012 2013 2014 2015

(million)

Fixed Annuity Variable Annuity

1.56 1.521.561.471.60


7,496 8,023 7,054 7,001 6,964

459 526 919 1,653 1,390

0

2,000

4,000

6,000

8,000

10,000

2011 2012 2013 2014 2015

(billion yen)

Fixed Annuity Valuable Annuity

7,955 8,3548,6557,9738,550


16.32 17.09 17.50 17.85 18.33

3.43 3.33 2.97 2.64 2.42

0.00

5.00

10.00

15.00

20.00

25.00

2011 2012 2013 2014 2015

(million)

Fixed Annuity Variable Annuity

19.75 20.7520.5020.4720.42

80,049 84,406 86,514 88,052 89,675

18,865 19,111 17,273 16,078 13,919

0 20,000 40,000 60,000 80,000

100,000 120,000

2011 2012 2013 2014 2015

(billion yen)

Fixed Annuity Valuable Annuity

98,915 103,788103,518 103,595104,131

2,571 3,2684,939 4,897

3,636

3.0 3.7

5.4 5.4

4.1

0.0 1.0 2.0 3.0 4.0 5.0 6.0

01,0002,0003,0004,0005,0006,000

2011 2012 2013 2014 2015

(%)(billion yen)



12

(3) Annualized PremiumThe total amount of annualized premium on new policies for individual insurance was 2,404 billion yen (108.2% y/y), while that for individual annuity insurance was 914 billion yen (103.4% y/y) in fiscal 2015, both increased for the second successive year. [Figure 13] The amount of annualized premium on policies in force for individual insurance was 19,676 billion yen (105.5% y/y), while that for individual annuity insurance was 6,518 billion yen (99.1% y/y). The amount of annualized premium on policies in force for individual insurance has been increasing for seven years. With regard to third-sector products, the amount of new policies was 616 billion yen (110.0% y/y) and that of policies in force was 5,937 billion yen (104.1% y/y). The amount of new policies increased for the third successive year and that of policies in force has been increasing consistently.

What is annualized premium? Given the increase in the sales of medical, cancer and long-term care insurance policies and individual annuity plans, which have little or no death protection, it is sometimes inappropriate to judge the business result solely by focusing on the amount of policies (i.e. total amount of death protection as to individual insurance). Annualized premium is increasingly used as the complementary indicator.There are various options for paying premiums for customers, including monthly payment, annual payment and lump-sum payment at the time of concluding the contract. Also, payments can be made either throughout the entire contract period or during a certain period. Annualized premium is calculated by adjusting these differences in payment options under the assumption that premium is equally divided and paid throughout the entire contract period, and indicates the average amount of premium income which a life insurer would receive in one year.Example: Case of lump-sum premium payment (contract period: 5 years, total premium: 1 million yen) Premium Income: 1 million yen Annualized Premium: 200 thousand yen (1 million yen divided by 5 years)

Figure 13: Changes in Annualized Premium

Note: The amount of annualized premium of "third-sector" includes the amount of premium to be allocated for paying medical coverage (e.g. benefits for hospitalization/surgery), living benefits (e.g. benefits for specified disease/long-term care), and premium waiver benefits (e.g. benefits due to specified disease or long-term care, but excluding disability).

Figure 14: Change in Annualized Premium of Policies in Force

"Third-Sector"

"Third-Sector"

2011 2,000 864 2,864 562 16,005 6,768 22,774 5,2522012 2,125 817 2,942 510 16,884 6,968 23,853 5,3842013 2,052 766 2,819 532 17,694 6,752 24,447 5,5382014 2,222 883 3,106 560 18,645 6,577 25,222 5,7042015 2,404 914 3,318 616 19,676 6,518 26,195 5,937

Below are f igures excluding Japan Post Insurance.2011 1,589 605 2,195 522 14,498 6,123 20,622 5,0972012 1,693 594 2,288 469 15,029 6,301 21,330 5,1972013 1,613 586 2,200 482 15,501 6,091 21,593 5,3102014 1,764 721 2,486 518 16,118 5,903 22,022 5,4472015 1,919 809 2,728 566 16,813 5,862 22,675 5,643

New Policies Policies in Force(billion yen) (billion yen)

IndividualAnnuity

IndividualInsurance

IndividualInsurance

IndividualAnnuity TotalTotal

22,774 23,853 24,447 25,222 26,195

5,252 5,384 5,538 5,704 5,9370

5,000

10,000

15,000

20,000

25,000

30,000

2011 2012 2013 2014 2015

(billion yen)

Annualized Premium of Policies in Force "Third-Sector"



(4) Hospitalization and Surgery Protection

Of all the products for individual, the number of policies in force of medical insurance which provides protection against hospitalization/surgery as a base policy was 33.70 million (105.5% y/y), and that of cancer insurance was 23.14 million (105.3% y/y), increasing continuously. [Figure 15]

Figure 15: Changes in Medical and Cancer Insurance (Number of Policies in Force)

To provide medical protection, there are also other types of insurance policies which are served with medical riders. With respect to insurance policies with hospitalization and surgery coverage (the sum of riders and stand-alone medical insurance policies among individual life insurance and individual annuity insurance), the number of policies with accidental hospitalization riders in force was 75.15 million (102.1% y/y), those with sickness hospitalization riders in force was 75.53 million (102.5% y/y), and those with surgical benefit riders in force was 99.74 million (103.1% y/y). [Figure 16]

Figure 16: Changes in Medical Insurance for Hospitalization and Surgery (Number of Policies in Force)

Note: Figures are the total of the numbers of protection under individual insurance policies and individual annuity contracts in force, both as a base policy and as a rider. Products with more than one protections are counted in each protection.

25.53 27.78

29.98 31.94

33.70

19.84 20.54 21.16 21.97 23.14

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

2011 2012 2013 2014 2015

(million)

Medical Insurance Cancer Insurance

69.39 70.81 72.31 73.57 75.15

68.76 70.41 72.21 73.71 75.53

90.52 92.0594.52

96.7399.74

50.00

60.00

70.00

80.00

90.00

100.00

2011 2012 2013 2014 2015

(million)

Hospitalization due to unforeseen accidents Hospitalization due to sickness Surgery



14

(5) Statistical Data by Gender, Age and Prefecture11

By Gender Comparing the number of new policies for individual insurance (excluding converted contracts) by gender of the insured, the ratio of females has been increasing recently to exceed that of males. In fiscal 2015, the ratio of females was higher at 50.4% compared with 49.6% for males, while the ratio of males was slightly higher than that of females in fiscal 2014. [Figure 17] Comparing the number of new policies for individual insurance between each type of insurance product by gender of the insured in fiscal 2015, "others" including cancer insurance and medical insurance ranked top (more than 50% of the total) for male and female, followed by whole life insurance, term insurance and endowment insurance for male and whole life insurance, endowment insurance and term insurance for female. [Figure 18] Comparing the number of new policies for individual annuity insurance by gender of the insured, the ratio of females has been higher than that of males so far, although the ratio of males has started to rise recently. In fiscal 2015, the ratios of males and females were 44.9% and 55.1%, respectively. [Figure 19]

Figure 17: Changes in Composition Ratio of Individual Insurance by Gender (Number of New Policies)

Figure 18: Composition Ratio of Individual Insurance by Type in FY2015 (Number of New Policies by Gender)

Figure 19: Changes in Composition Ratio of Individual Annuity by Gender (Number of New Policies)

11 Statistical data by gender, age and prefecture is based on the classification of the insured.

48.8

49.5

49.6

50.1

49.6

51.2

50.5

50.4

49.9

50.4

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2011

2012

2013

2014

2015

Male Female

22.8

28.7

17.1

9.7

8.2

10.2

51.9

51.3

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Male

Female

Whole Life Insurance Term Insurance Endowment Insurance Others

42.7

43.1

43.4

43.3

44.9

57.3

56.9

56.6

56.7

55.1

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2011

2012

2013

2014

2015

Male Female



By Age Comparing the number of new policies for individual insurance (excluding converted contracts) by age group of the insured, the ratio of those in their 40s has been on a rising trend, and the ratio of those in their 20s and 30s on a decreasing trend. In fiscal 2015, the results were consistent with this trend. [Figure 20] Also, comparing the number of new policies for individual insurance between each type of insurance product by age group of the insured, the ratio of "others" (including medical insurance, juvenile insurance, etc.) was the highest in those under 20, reaching 72.7%. Among those in their 20s to 50s, the ratio of "others" ranked top at approximately 50%, followed by whole life insurance. Among those aged 60 or over, the ratio of whole life insurance ranked top at 45.5%, followed by "others". [Figure 21] Comparing the number of new policies for individual annuity insurance by age group of the insured, the ratio of those under 40s increased in fiscal 2015. [Figure 22]

Figure 20: Changes in Composition Ratio of Individual Insurance by Age (Number of New Policies)

Figure 21: Composition Ratio of Individual Insurance by Type in FY2015 (Number of New Policies by Age)

Figure 22: Changes in Composition Ratio of Individual Annuity by Age (Number of New Policies)

14.4

14.8

15.5

17.1

15.7

16.2

17.4

17.5

16.6

16.4

21.4

21.2

20.2

19.3

19.1

16.7

16.8

16.7

16.8

17.2

13.5

12.9

12.4

12.4

12.5

17.8

16.9

17.6

17.8

19.2

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2011

2012

2013

2014

2015

Under 20 20s 30s 40s 50s 60 or older

8.6

20.8

23.0

23.4

31.1

45.5

10.4

19.5

19.3

16.6

11.0

3.5

8.3

9.3

7.8

9.4

8.4

11.8

72.7

50.5

50.0

50.6

49.5

39.2

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Under 20

20s

30s

40s

50s

60 or older

Whole Life (including whole life with term rider) Term Insurance Endowment Insurance Others

1.5

1.6

3.4

4.7

5.6

15.2

17.4

17.0

14.4

16.7

19.6

20.6

19.1

16.9

18.9

16.4

18.2

18.5

18.5

19.6

15.6

15.5

16.7

17.8

16.1

31.8

26.8

25.2

27.7

23.1

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2011

2012

2013

2014

2015

Under 20 20s 30s 40s 50s 60 or older



16

By Prefecture

Regarding the details of individual insurance by each prefecture, Figure 23 provides details of new policies (excluding converted contracts), and Figure 24 provides details of policies in force.

Prefecture Num ber Am ount(ten thousand) (billion yen) (thousand y en) (Number) (thousand y en) (ten thousand) (ten thousand)

Hokkaido 67 2,495 3,681 0.24 912 537 273Aom ori 14 593 4,003 0.25 1,012 133 58Iwate 14 602 4,106 0.28 1,163 128 51Miyagi 30 1,316 4,374 0.31 1,369 230 96Akita 11 461 3,887 0.27 1,088 103 42

Yamagata 15 609 3,971 0.37 1,494 112 40Fukushim a 24 1,087 4,470 0.31 1,413 194 76

Ibaraki 29 1,301 4,341 0.25 1,102 291 118Tochigi 24 1,125 4,680 0.30 1,418 196 79Gunm a 22 1,097 4,905 0.27 1,369 196 80Saitama 77 3,727 4,781 0.25 1,200 718 310Chiba 68 3,177 4,669 0.25 1,170 614 271Tokyo 215 10,799 5,016 0.32 1,625 1,296 664

Kanagawa 100 4,841 4,840 0.24 1,176 896 411Niigata 25 1,205 4,706 0.29 1,371 230 87Toyama 13 632 4,540 0.34 1,565 106 40Ishikawa 15 713 4,676 0.32 1,526 114 46

Fukui 11 546 4,598 0.42 1,940 78 28Yamanashi 10 453 4,413 0.29 1,305 83 34

Nagano 23 1,085 4,556 0.28 1,287 210 84Gifu 23 1,152 4,843 0.30 1,475 203 78

Shizuoka 48 2,125 4,403 0.31 1,407 369 150Aichi 88 4,568 5,164 0.28 1,486 730 307Mie 22 992 4,456 0.29 1,312 180 75

Shiga 16 760 4,512 0.30 1,390 139 54Kyoto 30 1,408 4,619 0.26 1,210 252 116Os aka 113 5,716 5,049 0.27 1,402 865 407Hyogo 64 3,079 4,807 0.26 1,261 552 244Nara 15 686 4,489 0.26 1,186 137 57

Wakayam a 12 509 4,155 0.28 1,166 98 43Tottori 8 332 4,141 0.34 1,429 57 23

Shim ane 8 342 4,055 0.29 1,206 69 28Okayama 23 1,083 4,586 0.28 1,328 191 81

Hiros him a 35 1,677 4,742 0.27 1,325 282 126Yamaguchi 17 734 4,233 0.26 1,129 140 65Tokushim a 11 472 4,280 0.33 1,435 76 32

Kagawa 12 643 4,953 0.30 1,505 99 42Ehime 17 780 4,438 0.27 1,215 140 64Kochi 9 374 3,917 0.27 1,068 73 35

Fukuoka 68 3,069 4,470 0.29 1,329 506 230Saga 11 464 4,112 0.35 1,441 83 32

Nagasaki 18 783 4,152 0.30 1,254 139 62Kumamoto 24 1,051 4,307 0.32 1,380 179 76

Oita 15 607 3,905 0.29 1,161 117 52Miyazaki 14 533 3,555 0.28 1,030 112 51

Kagos him a 21 883 4,037 0.27 1,102 167 80Okinawa 13 544 3,977 0.22 884 144 61

Total 1,585 73,255 4,619 0.28 1,312 12,589 5,581Note 1: Population and number of households are based on "Population, Demography and Number of Households Basedon the Basic Resident Registers (as of 1 January 2016)" of the Ministry of Internal Affai rs and Communications.Note 2: The figures are new pol icies excluding converted contracts.Note 3: The population does not include non-Japanese residents.

Figure 23: New Policies for Individual Insurance by Prefecture (FY2015)Individual Insurance Amount per

policyPolicies perhousehold

Am ount perhousehold

Population Household



Prefecture Number Amount(ten thousand) (billion yen) (thousand yen) (Num ber) (thousand yen)

Hokkaido 672 29,190 4,339 2.45 10,673Aom ori 154 8,132 5,247 2.64 13,874Iwate 147 7,578 5,147 2.84 14,635Miyagi 314 16,172 5,143 3.26 16,818Akita 119 5,839 4,890 2.81 13,766

Yam agata 157 8,015 5,101 3.85 19,648Fukushim a 243 12,682 5,212 3.16 16,484

Ibaraki 318 16,565 5,202 2.69 14,029Tochigi 258 14,840 5,751 3.25 18,708Gunm a 241 13,630 5,653 3.00 17,000Saitam a 846 46,357 5,477 2.72 14,929Chiba 743 40,192 5,405 2.73 14,801Tokyo 1,852 108,342 5,848 2.78 16,312

Kanagawa 1,083 59,472 5,490 2.63 14,450Niigata 281 16,090 5,725 3.19 18,305Toyama 160 8,971 5,573 3.98 22,191Ishikawa 165 8,983 5,442 3.53 19,212

Fukui 120 6,973 5,763 4.29 24,768Yam anashi 106 5,858 5,508 3.05 16,851

Nagano 254 13,710 5,378 3.02 16,261Gifu 250 14,007 5,584 3.21 17,937

Shizuoka 510 26,653 5,220 3.38 17,653Aichi 943 53,942 5,717 3.07 17,558Mie 227 12,099 5,328 3.00 16,007

Shiga 171 9,384 5,459 3.14 17,152Kyoto 314 16,740 5,317 2.70 14,387Osaka 1,120 63,902 5,700 2.74 15,676Hyogo 660 35,181 5,325 2.70 14,411Nara 161 8,673 5,361 2.79 14,997

Wakayama 126 6,389 5,042 2.90 14,632Tottori 82 4,359 5,256 3.56 18,756

Shim ane 85 4,368 5,088 3.02 15,398Okayama 247 13,454 5,436 3.03 16,489Hiroshim a 361 18,804 5,201 2.85 14,864Yam aguchi 179 8,676 4,822 2.76 13,342Tokushim a 106 5,586 5,233 3.23 16,950

Kagawa 132 7,544 5,690 3.10 17,660Ehime 171 8,986 5,251 2.66 13,986Kochi 96 4,822 4,974 2.76 13,757

Fukuoka 672 33,456 4,974 2.91 14,495Saga 114 5,851 5,126 3.54 18,156

Nagasaki 183 8,961 4,886 2.93 14,335Kumam oto 233 11,235 4,803 3.07 14,755

Oita 155 7,163 4,618 2.96 13,687Miyazaki 135 5,951 4,404 2.61 11,508

Kagoshim a 209 9,451 4,519 2.61 11,797Okinawa 113 5,350 4,731 1.83 8,698

Total 16,011 858,604 5,362 2.86 15,383Note : Population and number of households are based on "Population, Demography and Number ofHouseholds Based on the Basic Resident Registers (as of 1 January 2016)" of the M inistry of Internal Affairsand Communications.

Figure 24: Policies in Force for Individual Insurance by Prefecture(As of the End of FY2015)

Individual Insurance Am ount perpolicy

Policies perhousehold

Am ount perhousehold



18

2. Insurance Products for Groups (1) Group Insurance

New Policies

The aggregated number of new insured (the number after resolving double counting of insured of coinsurance undertaken by multiple insurers) and the amount of new policies for group insurance were 0.46 million (94.3% y/y) and 3,873 billion yen (126.5% y/y). [Figures 25 and 28]

Looking at the aggregated number of new insured, new policies for group insurance had been declining since some policies of the group term insurance existing at that time were switched to general welfare group term insurance in fiscal 1997. However, it has been remaining on the same level since fiscal 2006.

Of all the new policies, the amount of group credit life insurance ranked top (1,728 billion yen, 44.6% of the total), followed by general welfare group term insurance (1,423 billion yen, 36.8%) and group term insurance (721 billion yen, 18.6%). [Figure 26]

Policies in Force

The number of insured (aggregated) and the amount of policies in force were 38.75 million (98.9% y/y) and 375,152 billion yen (100.5% y/y). [Figures 25 and 29]

Of all the policies in force, the amount of group credit life insurance ranked top (176,506 billion yen, 47.0% of the total), followed by group term insurance (110,498 billion yen, 29.3%) and general welfare group term insurance (87,998 billion yen, 23.5%). [Figure 27]

Lapses and Surrenders

The amount of lapses and surrenders of group insurance12 increased from the previous year to 8,204 billion yen (117.4% y/y), and the ratio of lapses and surrenders13 also increased to 2.2% (up 0.3 points from the previous year). [Figure 30]

[Major Types of Group Insurance] Group Term Insurance: A kind of voluntary insurance product companies introduce for the purpose of welfare for its members, under which the applicant becomes the insured and pays insurance premium.

General Welfare Group Term Insurance: A kind of term insurance companies requires its all members to subscribe mandatorily in principle for the purpose of providing life security to the surviving relatives of the member. Contracts are renewed every year and the companies pay the premium.

Group Credit Life Insurance: A kind of insurance used for the conservation of loans such as housing loans, under which a debtor of the loan becomes the insured and credit providers (e.g. banks) or credit guarantee institutions become policyholders and beneficiaries. Under group credit life insurance, in case the debtor dies or become affected by prescribed state of disabilities, benefits equivalent to the amount of unpaid debts will be paid to the policyholder to clear the debt.

Figure 25: New Policies and Policies in Force for Group Insurance

12 Amount of lapses and surrenders = ( lapses + surrenders + total of decrease in amount of a policy) - (reinstatements + total of increase in amount of a policy)13 Ratio of lapses and surrenders = ( amount of lapses and surrenders / amount of policies in force at the beginning of fiscal year )* 100%

Y/Y Y/Y Y/Y Y/Y2011 0.33 79.6 3,021 121.7 39.55 98.6 370,330 99.72012 0.31 96.0 3,041 100.7 39.19 99.1 370,112 99.92013 0.70 221.4 4,479 147.3 39.34 100.4 371,288 100.32014 0.49 69.9 3,060 68.3 39.18 99.6 373,127 100.52015 0.46 94.3 3,873 126.5 38.75 98.9 375,152 100.5

(Num ber: m illion, Am ount: billion yen, Y/Y: %)New Policies Policies in Force

Aggregated Number of Insured Amount Aggregated Number of Insured Amount



Figure 26: Breakdown of Group Insurance in FY2015 (Amount of New Policies)

Figure 27: Breakdown of Group Insurance in FY2015 (Amount of Policies in Force)

Figure 28: Changes in Group Insurance (Number/Amount of New Policies)

Group Credit Life Insurance

1,72844.6%

General Welfare Group Term Insurance

1,42336.8%

Group Term Insurance

72118.6%

Total3,873

(Amount: billion yen)

Group Credit Life Insurance176,50647.0%

Group Term Insurance110,04929.3%

General Welfare Group Term Insurance

87,99923.5%

Consumer Credit Group Life Insurance

1190.03%

Others317

0.08%

Annuity Benefit Rider159

0.04%

Total375,152

(Amount: billion yen)

3,021 3,041

4,479

3,060 3,873

0.33 0.31

0.70

0.49 0.46

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0

1,000

2,000

3,000

4,000

5,000

6,000

2011 2012 2013 2014 2015

(million)(billion yen)Amount

Aggregated Number of Insured



20

Figure 29: Changes in Group Insurance (Number/Amount of Policies in Force)

Figure 30: Changes in Lapses and Surrenders of Group Insurance (Amount/Ratio of Lapses and Surrenders)

370,330 370,112 371,288 373,127 375,152

39.55

39.19 39.34

39.18

38.75

38.00

38.50

39.00

39.50

40.00

40.50

350,000

355,000

360,000

365,000

370,000

375,000

380,000

2011 2012 2013 2014 2015

(million)(billion yen)Amount

Aggregated Number of Insured

8,928

13,646

9,1296,991 8,204

2.4

3.7

2.5

1.92.2

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2011 2012 2013 2014 2015

(%)(billion yen)



(2) Group Annuity Insurance

The amount of policies in force for group annuity insurance (the amount of policy reserves) increased from the previous year to 33,714 billion yen (101.1% y/y). [Figures 31 and 32]

Looking at the asset of corporate pensions of defined benefit type, which are the key products, while the assets of defined benefit corporate pensions increased in fiscal 2015 from the previous year to 14,788 billion yen (13,922 billion yen in fiscal 2014), the assets of employees' pension funds decreased to 1,461 billion yen (1,997 billion yen in fiscal 2014). [Figure 33]

Figure 31: New Policies and Policies in Force for Group Annuity Insurance

Figure 32: Changes in Policies in Fore for Group Annuity Insurance (Amount)

Figure 33: Changes in Asset Balance of Employees' Pension Funds and Defined Benefit Corporate Pensions

Y/Y Y/Y Y/Y Y/Y2011 0.06 99.4 8 122.1 17.97 93.1 31,166 100.72012 0.10 168.6 19 222.0 17.89 99.5 31,815 102.12013 0.05 51.3 2 12.8 17.54 98.1 32,742 102.92014 2.77 5,012.8 45 1,795.6 19.30 110.0 33,355 101.92015 0.01 0.6 10 22.7 18.13 93.9 33,714 101.1

Note: Double counting of the number of insured under coinsurance undertaken by multiple insurers has been resolved.

(Num ber: m illion, Am ount: billion yen, Y/Y: %)New Policies Policies in Force

Aggregated Num ber of Insured Amount Aggregated Num ber of Insured Amount

31,166 31,815 32,742 33,355 33,714

0

10,000

20,000

30,000

40,000

2011 2012 2013 2014 2015

(billion yen)

2,358 2,373 2,341 1,997 1,461

11,48712,170

13,04513,922

14,788

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2011 2012 2013 2014 2015

(billion yen)

Employees' Pension Funds Defined Benefit Corporate Pensions



22

II. Profit and Loss 1. Insurance Related Profit and Loss (1) Premium Income

Gross annual premium income grew up to 37,748 billion yen (101.4% y/y) in Fiscal 2015. It has trended upward in recent years due to increase in single-premium insurance policies. Cash-valued products, which surged in 2012 in anticipation of the guaranteed yield rate cut in April 2013, had fallen back in fiscal 2013, but increased for the second successive year in fiscal 2015. [Figure 34]

As for results by type of business, individual insurance (25,607 billion yen, 104.3% y/y), individual annuity insurance (4,729 billion yen, 91.8% y/y), group insurance (1,124 billion yen, 100.5% y/y), and group annuity insurance (4,562 billion yen, 109.3% y/y). [Figure 35]

By method of premium payments for individual insurance, monthly payment ranked top (46.8% of the total), followed by single-premium payment (27.3%), annual payment (16.9%) and monthly payment through payroll deduction (8.6%). The shares of single-premium payment and annual payment have increased from the previous year in fiscal 2015. [Figure 36]

Figure 34: Changes in Profit and Loss

Figure 35: Changes in Premium Income by Type

OrdinaryRevenues

Prem iumIncom e

andOthers

Prem iumIncom e

InvestmentIncome

Interestand

DividendsOthers

OrdinaryExpenses

InsuranceBenefits

Paid

Provisionfor

Pol icyReserves

InvestmentExpenses

OperatingExpenses Others

2011 51,007 37,029 36,289 8,139 6,293 5,838 48,423 31,208 9,413 1,889 4,353 1,558 2,5832012 54,803 38,069 37,140 11,835 6,475 4,899 52,239 31,685 12,881 1,734 4,349 1,588 2,5642013 53,215 35,784 34,738 11,326 6,877 6,105 50,113 33,778 9,108 1,345 4,389 1,491 3,1012014 55,959 38,681 37,222 12,310 7,085 4,966 52,449 34,952 10,041 1,325 4,499 1,630 3,5102015 52,305 38,962 37,748 8,291 7,111 5,051 49,537 32,454 8,361 2,473 4,706 1,541 2,768

Below are f igures excluding Japan Post Insurance.2011 38,468 30,173 29,432 6,507 4,752 1,787 36,416 19,870 9,399 1,826 3,837 1,482 2,0522012 42,968 31,587 30,658 10,274 4,975 1,106 40,933 21,012 12,872 1,705 3,836 1,507 2,0342013 41,981 29,872 28,826 9,785 5,419 2,323 39,343 23,617 9,103 1,327 3,876 1,418 2,6382014 45,790 32,724 31,267 10,850 5,720 2,215 42,773 25,892 10,040 1,314 3,986 1,538 3,0162015 42,700 33,548 32,338 6,936 5,802 2,214 40,344 23,903 8,361 2,463 4,169 1,446 2,355

(billion yen)Income Expense

OrdinaryProfi t

22,734 24,099 22,721 24,546 25,607

4,679 4,3744,312

5,154 4,7291,114 1,1091,112

1,119 1,1243,925 3,6833,851

4,175 4,5623,835 3,8742,739

2,226 1,723

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2011 2012 2013 2014 2015

(billion yen)

Individual Insurance Individual Annuity Insurance Group InsuranceGroup Annuity Insurance Others (Reinsurance Premiums, etc.)

34,73837,222 37,748

36,289 37,140



Figure 36: Changes in Composition Ratio of Premium Income for Individual Insurance by Premium Payment Methods

(2) Insurance Benefits Paid

The total amount paid by all life insurers under life insurance contracts in fiscal 2015 was 32,454 billion yen (92.9% y/y).

Of all the amount of insurance benefits paid, claims paid amounted to 12,124 billion yen (93.5% y/y), annuities paid amounted to 4,859 billion yen (93.5% y/y), benefits (other than claims paid and annuities paid) amounted to 4,096 billion yen (100.7% y/y), surrender benefits paid amounted to 7,459 billion yen (85.0% y/y), refunds to policyholders amounted to 1,890 billion yen (104.1% y/y) and reinsurance premiums14 amounted to 2,022 billion yen (95.0% y/y).

The amount of claims paid declined for the eighth successive year since fiscal 2008 due to the decrease in number of old postal life insurance policies. While the amount of annuities paid had been increasing consistently, in fiscal 2015, it decreased for the first time. The amount of benefits increased for the fourth successive year. [Figure 37]

Figure 37: Changes in Insurance Benefits Paid

Note: Revenues and expenditures relating to the postal life insurance contracts issued by the former Japan Post (until 2007) is reflected on the revenues and expenditures of the Japan Post Insurance, through underwriting reinsurance from the Management Organization for Postal Savings and Postal Life Insurance that succeeds the contracts. Also, amounts equivalent to the insurance benefits paid (including annuities) relating to the postal life insurance is included in the "claims paid" of the Japan Post Insurance.

14 Premiums that life insurers pay to reinsurers. Reinsurance is an insurance contract that life insurers concludes with underwriting companies for reinsurance for the purpose of spreading risks regarding the amount of the benefit to be paid under the insurance contracts the insurer has underwritten.

28.1

28.8

25.2

27.0

27.3

14.7

15.9

15.6

15.4

16.9

0.5

0.4

0.5

0.4

0.4

45.8

44.9

48.5

47.9

46.8

10.9

10.0

10.2

9.2

8.6

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2011

2012

2013

2014

2015

Lump-sum Annual Semi-Annual Monthly Monthly through Payroll Deduction

(billion yen)

Claims Paid Annuities Paid Benefits SurrenderBenefits

Refunds toPolicyholders

ReinsurancePremiums

Total

2011 16,143 3,134 3,804 5,680 1,122 1,323 31,2082012 15,296 3,360 3,936 5,867 1,036 2,188 31,6852013 14,307 4,499 4,053 7,999 1,136 1,780 33,7782014 12,971 5,196 4,066 8,772 1,817 2,129 34,9522015 12,124 4,859 4,096 7,459 1,890 2,022 32,454

Below are f igures excluding Japan Post Insurance.2011 5,145 2,996 3,785 5,577 1,042 1,323 19,8702012 5,107 3,163 3,910 5,712 930 2,188 21,0122013 4,796 4,242 4,019 7,779 1,000 1,778 23,6172014 4,717 4,892 4,024 8,480 1,654 2,122 25,8922015 4,547 4,518 4,047 7,080 1,697 2,011 23,903



24

Of all the claims paid, the number and the amount of death benefits were 1.01 million (99.5% y/y) and 2,833 billion yen (100.8% y/y), and the number and the amount of matured insurance policies were 0.69 million (83.0% y/y) and 1,442 billion yen (88.4% y/y). [Figure 38]

Figure 38: Changes in Number and Amount of Death/Maturity Benefit Payments

Of all the benefits paid, the number and the amount of hospitalization benefits increased to 6.47 million (104.1% y/y) and 687 billion yen (101.0% y/y), and also those of surgery benefits increased to 3.78 million (105.2% y/y) and 400 billion yen (103.7% y/y). [Figure 39]

Figure 39: Changes in Number and Amount of Hospitalization and Surgery Benefits

2,805 2,705 2,733 2,812 2,8332,014 2,111 1,779 1,632 1,442

1.111.01

1.00 1.01 1.01

1.141.07

0.920.83

0.69

0.00

0.20

0.40

0.60

0.80

1.00

1.20

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2011 2012 2013 2014 2015

(million)(billion yen)

Amount (death benefits) Amount (maturity benefits)

Number (death benefits) Number (maturity benefits)

657 662 672 680 687

338 350 368 386 400

5.53 5.71 5.96 6.21 6.47

3.02 3.17 3.38 3.60 3.78

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

0

200

400

600

800

1,000

2011 2012 2013 2014 2015

(million)(billion yen)

Amount (hospitalization) Amount (surgery)

Number (hospitalization) Number (surgery)



2. Investment Income and Expenses Investment income in fiscal 2015 was 8,291 billion yen (67.4% y/y). Of all the investment income, while interest and dividends steadily increased from the previous year to 7,111 billion yen (100.4% y/y), others (including profits on asset management of special accounts) decreased significantly from the previous year to 513 billion yen (3,082 billion yen in fiscal 2014). Profits on asset management of special accounts themselves amounted to 16 billion yen (2,699 billion yen in fiscal 2014). [Figure 40]

Of all the interest and dividends, the amount of interest and dividends from securities stood at 5,947 billion yen (101.1% y/y) and that of interest from loans stood at 762 billion yen (94.2% y/y).

The amount of profits on sales of securities stood at 662 billion yen (64.2% y/y), and the losses on sales of securities stood at 155 billion yen (189.6% y/y). The losses on revaluation of securities stood at 91 billion yen (665.2% y/y). [Figures 40 and 41]

The amount of the balance of foreign exchange profits minus foreign exchange losses stood at -1,021 billion yen in fiscal 2015 (1,004 billion yen in fiscal 2014).

The investment yield on assets in general accounts was 1.92% (2.58% in fiscal 2014). The investment yield increased from the previous year in real estate to 2.62% (2.50% in fiscal 2014), while it decreased from the previous year in bonds to 1.75% (1.88% in fiscal 2014), domestic stocks to 5.17% (5.31% in fiscal 2014), foreign securities to 2.24% (5.50% in fiscal 2014) and financial loans to 1.70% (2.28% in fiscal 2014). [Figure 42]

Figure 40: Changes in Investment Income

Securities Loans Rent ofReal Es tate

Deposits andOthers

6,293 4,892 986 326 88 1,011 81 752 8,139<100.4> <102.7> <92.6> <95.3> <94.5> <90.9> <6863.8> <252.0> <106.0>

6,475 5,153 919 318 84 935 1,184 3,238 11,835<102.9> <105.3> <93.2> <97.7> <95.5> <92.5> <1448.0> <430.7> <145.4>

6,877 5,620 866 312 79 1,124 693 2,631 11,326<106.2> <109.1> <94.2> <97.9> <94.0> <120.1> <58.5> <81.2> <95.7>

7,085 5,880 809 312 83 1,032 1,110 3,082 12,310<103.0> <104.6> <93.5> <100.1> <104.7> <91.8> <160.1> <117.1> <108.7>

7,111 5,947 762 318 82 662 4 513 8,291<100.4> <101.1> <94.2> <102.0> <100.0> <64.2> <0.4> <16.7> <67.4>

4,752 3,701 639 326 85 921 81 751 6,507<101.4> <103.2> <95.7> <95.3> <94.5> <88.0> <6863.8> <266.3> <108.2>

4,975 3,964 612 318 79 875 1,184 3,238 10,274<104.7> <107.1> <95.7> <97.7> <93.5> <95.0> <1448.0> <430.8> <157.9>

5,419 4,439 592 312 74 1,053 691 2,621 9,785<108.9> <112.0> <96.8> <97.9> <93.7> <120.3> <58.4> <80.9> <95.2>

5,720 4,761 568 312 77 970 1,110 3,049 10,850<105.5> <107.3> <95.9> <100.1> <104.1> <92.2> <160.5> <116.3> <110.9>

5,802 4,856 550 318 77 661 4 468 6,936<101.4> <102.0> <96.9> <102.0> <99.2> <68.1> <0.4> <15.4> <63.9>

Note 1: Others include income f rom monetary trusts, prof it on f inancial derivatives and gains on assets in special accounts.Note 2: The f igures in parentheses represent year-on-year rate.

2015

2011

2014

2015


2014

2012

2013

2013

ForeignExchange

ProfitOthers

2011

2012

Total

(billion yen, %)

Interestand

Dividends

Profit onSales of

Securities



26

Figure 41: Changes in Investment Expenses

Figure 42: Changes in Portfolio Yields by Type of Assets

60 705 231 182 709 1,889<115.0> <92.5> <40.5> <30.5> <83.9> <66.7>

61 323 216 29 1,105 1,734<101.8> <45.8> <93.4> <15.9> <155.8> <91.8>

69 258 46 21 949 1,345<113.4> <79.9> <21.7> <74.0> <85.9> <77.6>

64 82 13 105 1,059 1,325<92.5> <31.8> <29.2> <491.7> <111.6> <98.5>

68 155 91 1,026 1,131 2,473<106.9> <189.6> <665.2> <968.1> <106.8> <186.6>

58 675 231 179 681 1,826<115.7> <91.5> <41.7> <30.1> <80.8> <65.6>

57 303 216 28 1,099 1,705<98.8> <44.9> <93.4> <15.8> <161.4> <93.4>

64 247 46 21 946 1,327<112.2> <81.7> <21.7> <75.8> <86.1> <77.8>

60 77 13 105 1,057 1,314<92.9> <31.1> <29.2> <491.7> <111.8> <99.0>

64 153 91 1,025 1,128 2,463<107.3> <199.7> <665.2> <967.7> <106.7> <187.4>

(billion yen, %)Losses on

Sales ofSecurities

Losses onRevaluationof Securities

ForeignExchangeLosses

Others Total

Note 1: Others include losses f rom monetary trusts, f inancial derivatives expenses and losses on assetsin special accounts.Note 2: The f igures in parentheses represent year-on-year rate.

2015

2011

2014

Interes tPaid

2015


2012

2011

2014

2012

2013

2013

Bonds Dom esticStocks

ForeignSecurities

FinancialLoans Real Es tate

GeneralAccountAssets

2011 1.91 1.56 2.91 1.94 2.27 1.922012 2.00 0.61 5.25 2.18 2.35 2.362013 1.95 5.14 4.60 2.15 2.43 2.402014 1.88 5.31 5.50 2.28 2.50 2.582015 1.75 5.17 2.24 1.70 2.62 1.92

2011 2.13 1.56 2.93 1.67 2.29 2.042012 2.24 0.61 5.29 2.09 2.37 2.652013 2.10 5.15 4.65 2.07 2.46 2.682014 1.98 5.31 5.57 2.30 2.54 2.892015 1.81 5.17 2.24 1.50 2.67 2.02


Note: Yields are calculated by dividing (investment income - investment expenses + appraisal gains under Article112 of the Insurance Business Act) by the average daily balance.

(%)



3. Operating Expenses The total amount of operating expenses stood at 4,706 billion yen (104.6% y/y). The ratio of premium income to total operating expenses was 12.1% (up 0.5 points from the previous year). [Figure 43]

Figure 43: Changes in Operating Expenses

4. Ordinary Profits and Basic Profits The total amount of ordinary profits decreased from the previous year for the first time in three years to 2,768 billion yen (78.9% y/y) due to the decrease in investment income. The total amount of basic profits, which represents the profitability of the life insurance companies for the year, decreased from the previous year to 3,334 billion yen (87.2% y/y) for the first time in six years. [Figure 44] What is Basic Profit? "Basic profit" is the indicator for the basic periodic profit/loss status of life insurers, comprised of income and expenditures for core insurance business (e.g. premium income, payments of insurance benefits and operating expenses) and income and expenditures for investment (mainly interest and dividends). The amount is calculated by deducting both "capital gains/losses" and "extraordinary gains/losses" (e.g. profits/losses on sales of securities) from the ordinary profits.

Figure 44: Changes in Ordinary Profits and Basic Profits

4,353 4,349 4,389 4,499 4,706

11.8 11.4 12.3

11.6 12.1

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

0

1,000

2,000

3,000

4,000

5,000

6,000

2011 2012 2013 2014 2015

(%)(billion yen)

Operating Expenses Ratio to Premium Income

2,583 2,564

3,101

3,510

2,7683,074

3,2593,545

3,823

3,334

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2011 2012 2013 2014 2015

(billion yen)

Ordinary Profits Basic Profits



28

III. Investment Results 1. Total Assets

As of the end of fiscal 2015, total assets decreased from the previous year for the first time in seven years to 367,167 billion yen (99.97% y/y).

By the type of items, securities accounted for 81.8% of total assets (300,523 billion yen, 100.4% y/y) followed by loans at 9.5% (34,986 billion yen, 95.0% y/y). [Figures 45 and 46]

Figure 45: Changes in Total Assets

Figure 46: Ratio to Total Assets

Cash,Deposits and

SavingsCall Loans Monetary

Trus ts Securities Loans T angibleFixed Assets Others Total

Assets

2011 3,515 2,509 2,014 257,560 42,173 6,601 12,578 326,9522012 3,574 2,766 2,059 278,244 40,244 6,460 11,646 344,9982013 4,416 2,669 2,459 285,031 38,099 6,319 11,586 350,5822014 5,608 3,672 3,332 299,429 36,810 6,329 12,072 367,2552015 7,458 1,280 3,701 300,523 34,986 6,250 12,966 367,167

2011 2,290 1,911 1,771 182,973 28,244 6,515 9,556 233,2642012 2,850 2,563 1,803 205,686 27,553 6,374 7,704 254,5352013 2,753 2,439 1,877 215,652 27,078 6,230 7,461 263,4932014 3,402 3,227 1,897 233,152 26,832 6,197 7,633 282,3432015 5,602 920 2,056 236,912 26,008 6,104 8,018 285,624

(billion yen)


Cash,Deposits and

SavingsCall Loans Monetary

Trus ts Securities Loans T angibleFixed Assets Others Total

Assets

2011 1.1 0.8 0.6 78.8 12.9 2.0 3.8 100.02012 1.0 0.8 0.6 80.7 11.7 1.9 3.4 100.02013 1.3 0.8 0.7 81.3 10.9 1.8 3.3 100.02014 1.5 1.0 0.9 81.5 10.0 1.7 3.3 100.02015 2.0 0.3 1.0 81.8 9.5 1.7 3.5 100.0

2011 1.0 0.8 0.8 78.4 12.1 2.8 4.1 100.02012 1.1 1.0 0.7 80.8 10.8 2.5 3.0 100.02013 1.0 0.9 0.7 81.8 10.3 2.4 2.8 100.02014 1.2 1.1 0.7 82.6 9.5 2.2 2.7 100.02015 2.0 0.3 0.7 82.9 9.1 2.1 2.8 100.0


(%)



2. Securities By the type of securities (300,523 billion yen in total), Japanese government bonds ranked top with 148,568 billion yen (99.9% y/y) accounting for 49.4% of the total securities, followed by foreign securities at 78,653 billion yen (107.3% y/y), corporate bonds at 25,363 billion yen (102.0% y/y), stocks at 19,813 billion yen (87.3% y/y) and local government bonds at 13,517 billion yen (97.5% y/y). [Figure 47]

Since the domestic interest rate remained low throughout fiscal 2015, financial resources were largely allocated to foreign securities etc., thanks to their comparatively high interest rates. As a result, the amount of bonds (total of government bonds, local government bonds and corporate bonds) decreased for the second successive year (187,449 billion yen, 99.98% y/y). The amount of stocks decreased for the first time in four years. Among the assets, the amount of bonds accounted for 51.1%, foreign securities for 21.4%, and stocks for 5.4% of the total in fiscal 2015. [Figures 48 and 49]

Of all the foreign securities, the amount of bonds (total of government bonds, local government bonds and corporate bonds) stood at 72,131 billion yen (107.4% y/y), and the amount of stocks stood at 6,521 billion yen (106.2% y/y). [Figure 49]

Figure 47: Changes in Breakdown of Securities

Figure 48: Changes in Balance of Bonds and Stocks

Total

Am ount Ratio Am ount Ratio Amount Ratio Amount Ratio Amount Ratio Am ount Ratio Amount2011 141,275 54.9 13,163 5.1 25,342 9.8 14,744 5.7 46,926 18.2 16,107 6.3 257,5602012 148,769 53.5 13,934 5.0 25,155 9.0 16,725 6.0 55,986 20.1 17,673 6.4 278,2442013 149,815 52.6 14,008 4.9 24,895 8.7 18,029 6.3 61,450 21.6 16,830 5.9 285,0312014 148,761 49.7 13,868 4.6 24,855 8.3 22,697 7.6 73,280 24.5 15,965 5.3 299,4292015 148,568 49.4 13,517 4.5 25,363 8.4 19,813 6.6 78,653 26.2 14,607 4.9 300,523

Below are f igures excluding Japan Post Insurance.2011 81,313 44.4 5,385 2.9 19,115 10.4 14,743 8.1 46,308 25.3 16,107 8.8 182,9732012 92,296 44.9 5,236 2.5 18,671 9.1 16,724 8.1 55,084 26.8 17,673 8.6 205,6862013 97,292 45.1 4,835 2.2 18,454 8.6 18,028 8.4 60,211 27.9 16,830 7.8 215,6522014 100,675 43.2 4,312 1.8 18,202 7.8 22,696 9.7 71,299 30.6 15,965 6.8 233,1522015 104,389 44.1 4,112 1.7 19,126 8.1 19,812 8.4 74,964 31.6 14,507 6.1 236,912

GovernmentBonds

Local GovernmentBonds

CorporateBonds Stocks

ForeignSecurities Other Securities

(Am ount: billion yen, Ratio: %)

179,781 187,859 188,720 187,485 187,449

14,744 16,725 18,029 22,697 19,813

55.0 54.5 53.8 51.1 51.1

4.5 4.8 5.1 6.2 5.4

0.0

10.0

20.0

30.0

40.0

50.0

60.0

0

50,000

100,000

150,000

200,000

250,000

2011 2012 2013 2014 2015

(%)(billion yen)

Bonds Stocks Ratio to Total Assets (bonds) Ratio to Total Assets (stocks)



30

Figure 49: Changes in Balance of Foreign Securities

3. Loans The balance of loans decreased from the previous year to 34,986 billion yen (95.0% y/y), accounting for 9.5% of total assets (down 0.5 points from the previous year).

Loans were the main items in the investment portfolios of life insurers from the late 1960s to early 1970s; however, the amount has been decreasing in the long run. Financial loans, accounting for 91.4% of total loans, decreased from the previous year to 31,985 billion yen (94.8% y/y), and policy loans also decreased from the previous year to 3,001 billion yen (97.8% y/y). [Figure 50]

As for the items of financial loans, loans to entities account for 86.9%, followed by loans to individuals for 5.9%. [Figure 51]

The amount of risk-monitored loans (total of loans to bankrupt borrowers, past due loans, loans overdue for three months or more and restructured loans) increased from the previous year to 117 billion yen (105.7% y/y). Among them, past due loans amounted to 90 billion yen (112.9% y/y) and restructured loans amounted to 21 billion yen (86.2% y/y). The ratio of risk-monitored loans to total loans was 0.3% in fiscal 2015 (0.3% in fiscal 2014). [Figure 52]

Figure 50: Changes in Breakdown of Loans

42,02350,780 56,186

67,137 72,1314,902

5,2055,264

6,1426,521

14.416.2

17.5

20.021.4

0.0

5.0

10.0

15.0

20.0

25.0

0

20,000

40,000

60,000

80,000

100,000

2011 2012 2013 2014 2015

(%)(billion yen)

Bonds Stocks Ratio to Total Assets

Financial Loans Policy Loans Total Loans Ratio to TotalAssets

2011 38,858 3,315 42,173 12.92012 37,039 3,205 40,244 11.72013 34,964 3,134 38,099 10.92014 33,741 3,069 36,810 10.02015 31,985 3,001 34,986 9.5

Below are f igures excluding Japan Post Insurance.2011 24,950 3,294 28,244 12.12012 24,383 3,169 27,553 10.82013 23,998 3,079 27,078 10.32014 23,837 2,994 26,832 9.52015 23,102 2,905 26,008 9.1

(Amount: billion yen, Ratio: %)



Figure 51: Changes in Financial Loans to Entities and Individuals

Note 1: Financial loans to entities include the loans to foreign entities in addition to the items described above. Note 2: Financial loans from Japan Post Insurance to SMEs include loans to Management Organization for Postal Savings and Postal Life Insurance. Note 3: The figures in parentheses represent year-on-year rate.

(Classification of Scale of Entities by the Type of Business) Type of Business

① All Types of Business Except for ② to ④

② Retail and Eating and Drinking Business ③ Service Business ④ Wholesale Business

Large Entities With more than 300 employees and;

Capital of 1 billion yen or more With more

than 50 employees and;





Capital of 1 billion yen or more

Leading Medium-Sized Entities

Capital of more than 300 million yen and less than 1 billion yen




SMEs With capital of 300 million yen or less or 300 or less full-time employees

With capital of 50 million yen or less or 50 or less full-time employees



Figure 52: Changes in Amount of Risk-Monitored Loans

LargeEntities

LeadingMedium-Sized

EntitiesSMEs Hom e

MortgagesConsum er

Loans

34,380 17,392 153 15,446 1,570 777<96.5> <99.2> <75.1> <94.5> <89.9> <85.3>32,489 17,097 131 13,874 1,451 794<94.5> <98.3> <85.4> <89.8> <92.4> <102.2>30,443 16,594 139 12,104 1,400 808<93.7> <97.1> <106.6> <87.2> <96.5> <101.7>29,437 16,282 135 11,040 1,333 706<96.7> <98.1> <97.3> <91.2> <95.2> <87.4>27,798 15,659 156 9,989 1,251 646<94.4> <96.2> <115.5> <90.5> <93.8> <91.6>

20,881 17,223 153 2,117 1,570 777<97.4> <98.8> <75.1> <93.3> <89.9> <85.3>20,286 16,881 131 1,888 1,451 794<97.1> <98.0> <85.4> <89.2> <92.4> <102.2>19,981 16,351 139 1,885 1,400 808<98.5> <96.9> <106.6> <99.8> <96.5> <101.7>20,067 16,027 135 1,925 1,333 706

<100.4> <98.0> <97.3> <102.1> <95.2> <87.4>19,505 15,439 156 1,916 1,251 646<97.2> <96.3> <115.5> <99.5> <93.8> <91.6>

Loans to Individuals

(billion yen, %)

2011

2012

Loans to Entities

2011

2012

2014

2013

2013

2014

2015


2010

10 7 7 3 2

11985 83 80 90

3

3 3 3 3

46

38 26 24 21

0.4

0.3 0.3 0.3 0.3

0.0

0.1

0.2

0.3

0.4

0.5

0

50

100

150

200

250

300

2011 2012 2013 2014 2015

(%)(billion yen)

Loans to Bankrupt Borrowers Past Due LoansLoans Overdue for 3 Months or More Restructured LoansRatio of Risk-Monitored Loans

179

117111121135



32

4. Tangible Fixed Assets (Real Estate) Of the total amount of tangible fixed assets (6,250 billion yen), the amount of real estate, which is the total amount of land, buildings and construction in process, was 6,157 billion yen (98.7% y/y). [Figures 45 and 53]

Figure 53: Changes in Balance of Real Estate

IV. Liabilities and Net Assets Total liabilities stood at 343,768 billion yen (100.8% y/y), accounting for 93.6% of gross capital (the total of liabilities and net assets). By the items of liabilities, insurance reserves account for 93.7% of total liabilities. Of all the insurance reserves, policy reserves, which are reserved for future insurance claim payments, account for 98.0% of total policy reserves. Other than that, reserves for policyholder dividends account for 1.3%, which are reserved for paying dividends on insurance contracts, and reserves for outstanding claims account for 0.7%, which are reserved for unclaimed insurance payable. [Figure 54 (upper panel)]

Meanwhile, total net assets were 23,398 billion yen (89.6% y/y), accounting for 6.4% of gross capital. It decreased from the previous year due to the decrease in "total valuation, translation adjustment, and others". [Figure 54 (lower panel)]

Figure 54: Liabilities and Net Assets

6,513 6,374 6,237 6,241 6,157

2.0 1.8 1.8 1.7 1.7

0.0

0.5

1.0

1.5

2.0

4,500

5,000

5,500

6,000

6,500

7,000

2011 2012 2013 2014 2015

(%)(billion yen)

Amount Ratio to Total Assets

Am ount Ratio of Liabilities Ratio322,017 93.7 87.7

Reserves for Outstanding Claims 2,203 0.6 0.6Policy Reserves 315,500 91.8 85.9Reserves for Policyholder Dividends 4,312 1.3 1.2

3,563 1.0 1.018,187 5.3 5.0

343,768 100.0 93.6

Am ount Ratio of Net Assets Ratio

10,855 46.4 3.0

Fund or Capital 3,085 13.2 0.8Accumulated Redeemed FoundationFunds 2,215 9.5 0.6

Capital Surplus 1,709 7.3 0.5Surplus or Retained Earnings 3,844 16.4 1.0Others 1 0.0 0.0

12,542 53.6 3.4

0 0.0 0.023,398 100.0 6.4

367,167 － 100.0

Total Net Assets

Total Liabilities and Net Assets

Total Valuation, Trans lationAdjus tment, and othersStock Acquis ition Rights

Breakdown of Net AssetsTotal Foundation Funds and others orTotal Stockholders ' Equity

Insurance Reserves

Res erves for Price FluctuationsOthersTotal Liabilities

Breakdown of Liabilities(Amount: billion yen, Ratio: %)



Reference Distribution Channels and Sales Force

The distribution channels of the life insurance companies in Japan have diversified recently, including tied sales agents who belong to a sales office of a life insurance company organized within its domestic branch, sales agencies which conclude a service contract with a life insurance company, direct sales and internet sales. The solicitation of life insurance products is conducted mostly by tied sales agents, sales agencies (including corporate type and individual type) and sales representatives at agencies, who are required to be registered with the FSA as a life insurance solicitor in accordance with the Insurance Business Act.

While the number of tied sales agents had been on the decrease, in fiscal 2015, it increased for the first time in six years to mark 229,668 (100.9% y/y). The number of corporate type sales agencies has been remaining almost unchanged and in fiscal 2015, it amounted to 35,199 (99.9% y/y). Also, while the number of individual type sale agencies increased in fiscal 2014 for the first time in 17 years, it decreased again to 57,786 (96.8% y/y) in fiscal 2015. Sales representatives at agencies, which had been increasing given that the banks started to sell all types of life insurance products in fiscal 2002 and that the postal privatization was achieved in 2007, decreased in 2014; however, it slightly increased again to 999,218 (100.7% y/y) in fiscal 2015 .

Figure 55: Number of Tied Sales Agents, Agencies and Sales Representatives at Agencies at the End of Fiscal 2015

Note: The number of sales representatives at agencies includes the total of corporate agencies and individual agencies.

2008 2009 2010 2011 2012 2013 2014 2015Corporate Agencies 35,732 35,084 34,820 34,694 34,809 34,714 35,218 35,199Individual Agencies 72,247 70,980 68,046 64,470 61,298 56,938 59,700 57,786Tied Sales Agents 248,481 250,601 240,952 236,572 233,559 228,878 227,724 229,668Sales Representatives at Agencies 949,220 970,797 989,301 1,005,471 1,011,176 1,015,242 992,266 999,218

0

20,000

40,000

60,000

80,000

100,000

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000(agencies)(agents)



34

Member Companies

Changes in the number of Member Companies

Note: Numbers are as of the end of each fiscal year.

List of Member Companies of the LIAJ (41 life insurers) as of March 2016AXA Life Insurance Co., Ltd. Zurich Life Insurance Company Ltd.AXA Direct Life Insurance Company Limited T&D FINANCIAL LIFE INSURANCE COMPANYAsahi Mutual Life Insurance Co. Tokio Marine & Nichido Life Insurance Co., Ltd.American Family Life Assurance Company of Columbus Nippon Life Insurance Co.Allianz Life Insurance Japan Ltd. The Neo First Life Insurance Company, LimitedAIG Fuji Life Insurance Company, Limited Fukoku Mutual Life Insurance Co.SBI Life Insurance Co., Ltd. Fukokushinrai Life Insurance Co., Ltd.NN Life Insurance Company, Ltd. The Prudential Life Insurance Co., Ltd.ORIX Life Insurance Corporation The Prudential Gibraltar Financial Life Insurance Co., Ltd.CARDIF Assurance Vie MassMutual Life Insurance CompanyJAPAN POST INSURANCE Co., Ltd. Manulife Life Insurance CompanyCrédit Agricole Life Insurance Company Japan Ltd. Mitsui Life Insurance Company LimitedThe Gibraltar Life Insurance Co., Ltd. Mitsui Sumitomo Aioi Life Insurance Co., LimitedSumitomo Life Insurance Co. Mitsui Sumitomo Primary Life Insurance Company, Limited

Sony Life Insurance Co., Ltd. Midori Life Insurance CompanyAEGON Sony Life Insurance Co., Ltd. Meiji Yasuda Life Insurance CompanySompo Japan Nipponkoa Himawari Life Insurance, Inc. MetLife Insurance K.K.THE DAI-ICHI LIFE INSURANCE COMPANY, LIMITED Medicare Life Insurance Co., Ltd.The Dai-ichi Frontier Life Insurance Co., Ltd. LIFENET INSURANCE COMPANYDaido Life Insurance Co. Rakuten Life Insurance Co., Ltd.Taiyo Life Insurance Company

10

15

20

25

30

35

40

45

50

1970 1975 1980 1985 1990 1995 2000 2005 2010 2015

(companies)

(fiscal year)

2. The LIAJ's Topics for Fiscal 2015


a) Recommendation on the establishment of "Longevity Pension"In February 2016, the LIAJ made a recommendation on social security reforms in its report: "Establishing 'Longevity Pension' to complement the public pension scheme: for social security system that provides peace of mind for society". The report recommends to establish a brand new whole life private pension scheme to complement the public pension scheme as a cross-over scheme between public security system and private security system.

As the association of life insurers that play key roles in the social security system, the LIAJ is determined to strive for the establishment of social security system that provides peace of mind for society, by appropriately participating in the discussion to enhance the sustainability of social security system as well as by developing and providing better insurance products and services and by universal distribution of insurance products.

<Summary of the Recommendation>

Issue 1. Broader recognition of the importance of financial life planning and advantages of pension scheme as the foundation for the planning should be achieved

－Japan's social security system is experiencing considerable pressures from long-term trends such as population aging and the swelling public debt. To ensure sustainability, crucial reforms are needed which must inevitably increase the financial burden on the general public. －It can be observed that people are increasingly feeling unsettled about their own future and life after

retirement due to unsettled social conditions. －In order for people to prepare for increased financial burden and to be settled about their future, it is of

greater importance that they design their own life plan and prepare for retirement on their own (self-help efforts). －Among many factors people should consider when designing their own life plan, such as their career

and marriage, a secure and stable source of retirement income (pension) should be focused in each life planning as a key factor. Given the nature of pension scheme that requires long accumulation period to save up adequate capital for pension payouts, it is of the utmost urgency that people prepare for retirement using pension plans.

Issue 2. Attention should be given to the exclusive benefit of whole life pension scheme in mitigating the risk of outliving retirement savings

－Lifetime income from public and private pensions plays a vital role in securing stable income after retirement and mitigating the risk of outliving retirement savings. －Public pension benefit levels are predicted to steadily decrease as the environment surrounding the

social security system deteriorates, meanwhile, both individual and corporate private pension schemes are struggling to provide a whole life pension due to the further rise in longevity and the unprecedented ultra-low interest rate environment. －These trends mean that society as a whole is becoming less prepared against the risk of outliving

retirement savings, and will face a major challenge in the near future as the population ages even further.

Recommendation: Establish a brand new whole life private pension scheme "Longevity Pension" that provides a stable lifetime income

－Given the above arguments, we believe that a brand new whole life private pension scheme designed to complement the public pension scheme should have features of lifetime payout, lifetime stability, and universal accessibility.

1. Lifetime payout Lifetime payout is essential because nobody knows how long they will live.



36

2. Lifetime Stability Benefit need to be stable over years even when the market deteriorates.

3. Universal Accessibility

The new scheme must be accessible to everyone, and also be simple and easy to understand.

－We also believe from the perspective of promotion of the scheme that it is important that national government implement relevant policy measures to encourage self-help efforts according to their own income, particularly by providing a certain amount of state subsidy to the scheme upon receipt of premiums and by informing people of advantages of participating in the system.

－The LIAJ recommends establishing a whole life private pension scheme "Longevity Pension" as an applicable solution that meets above requirements. Our recommendation would give concrete illustration of such system that provides these functions. Establishment of the scheme of "Longevity Pension" would offset shrinking public pension income by assuring a secure and stable lifetime pension income, thereby facilitating personal life planning and preparation for retirement. －The LIAJ believes that the appropriate coordination of public and private pension schemes will make the

social security system more sustainable, which will foster a society in which people can live with peace of mind to better enjoy their lives.

b) Promotion of Insurance Education Participating rate of life insurance is declining especially for younger people. This could threaten peace of mind for society in the future. To address this concern, a broader understanding of the role and importance of self-help efforts is essential. Accordingly, the LIAJ helped spread the knowledge that people need in order to make their own financial plans.

In particular, in addition to existing efforts by the LIAJ such as providing teaching materials, the LIAJ discussed increasing opportunities for insurance education at school and providing input to the parties concerned so that students can learn the role of insurance in life planning.

Recognising that these initiatives are critical for the life insurance business, the LIAJ continues to conduct them not for a single year but over the medium to long term in cooperation with the Japan Institute of Life Insurance. In fiscal 2015, the LIAJ conducted two initiatives below.

1) Publication of "Casebook on Industry Initiatives on Insurance Education" In February 2016, the LIAJ published a casebook that introduces voluntary and active initiatives by member companies in the area of insurance education.

Insurance Premium and Subsidy (image)

People with Lower Income

Insurance Premium needed to receive full

amount of subsidy(depends on their

income)

Subsidy(amount is fixed

regardless of their income)

Reserve Fund(Premium + Subsidy)

+ =

+ =People with

Higher Income



<About the Casebook> The LIAJ conducted a survey of member companies on their initiatives for "provision of knowledge about

insurance" and "seminars and lectures" in the area of insurance education to achieve the better understanding on the important role of self-help efforts. The casebook introduces survey responses as follows: Provision of Knowledge about Insurance: Member companies are providing knowledge about

insurance through their website, education materials and other tools. Seminars and Lectures: Member companies are providing lecturers, endow courses, opportunities

for workplace experience, education events, and education for teachers and consumer consultants. In fiscal 2014, these events were held 532 times in total and about 46,000 people participated in such events.

The Japan Institute of Life Insurance and the LIAJ are also promoting initiatives to deepen the understanding on life insurance and life planning by people of all generations through the "all generation-responsive package" supporting the consumer understanding.

Through taking advantages of member companies' initiatives shared in the Case Studies, the LIAJ will further support member companies in introducing and conducting voluntary and active measures in the area of insurance education and enhance initiatives taken by the life insurance industry as a whole.

2) Recommendation for Greater Opportunity for Insurance Education at Schools in the Report on Enhancement of insurance Education

The LIAJ made a recommendation for greater opportunity for insurance education at schools in its report "The Report on Enhancement of Insurance Education" in April 2016. The LIAJ conducted a teachers' survey by sending out questionnaire to teachers who are teaching social science (civics) or domestic science in 15,513 junior/senior high schools all over Japan as well as a field survey in some major Western countries. The report put together the survey results in order to identify current practices and problems that need to be solved regarding insurance education at schools. The report then makes a recommendation for greater opportunity for insurance education at schools. In order to provide future generations with necessary competence to live their life with financial security, the LIAJ will further enhance initiatives regarding insurance education through which they can learn the importance of self-help efforts in financial preparation for their future life security.

<Summary of the Recommendation> When the social security system is mentioned in the class, it should be ensured that the importance of

self-help efforts and the benefit of the function of insurance is also communicated. More practically, they should be learnt in both contexts of: the study of domestic science that focuses on

personal life, and the study of social science (civics) that focuses on social life. <domestic science> While the current standard course provides that insurance should be introduced in high school classes as a tool to manage risks in one's life planning, the course curriculum should be expanded to introduce insurance in the context of the social security system as a tool to prepare for one's future life security. <social science (civics)> While the current standard course provides that social security system should be mentioned in junior-high and high school classes, the course should be improved to ensure that the importance of self-help efforts and the benefit of the use of insurance in their financial preparation for their future life security is communicated.

In implementing the above policy, teaching materials or lecturers provided by life insurance sector should be recognized and used as appropriate.

3. The Life Insurance Association of Japan


38

a) Basic Information The Life Insurance Association of Japan (LIAJ) started as an incorporated association with formal sanction by the authorities concerned on December 7, 1908. Since then, the Association has continued to make efforts for the sound development of the life insurance industry.

1) Objective

To strive for the sound development of the life insurance industry and maintain its reliability.

2) Activities page I) Activities to provide information and promote understanding on the life insurance business ························ 43 II) Consultation services, complaint processing and dispute resolution operations regarding life insurance ······· 43 III) Activities regarding systems and measures to ensure appropriate operation of the life insurance business ··· 45 IV) Activities regarding education and training for the staff of member companies ·········································· 49 V) Research and study activities regarding the theory and practice of life insurance VI) Activities regarding making requests and proposals to relevant authorities, agencies and organizations ······· 51 VII) Activities to fulfill social responsibilities ································································································ 52 VIII) Other activities considered necessary to achieve the goals of the LIAJ Note: This “Life Insurance Business in Japan” does not specifically introduce (V) Research and study activities regarding

the theory and practice of life insurance and (VIII) Other activities considered necessary to achieve the goals of the LIAJ.

3) History 1898 ・The Forum of Japanese Life Insurers was founded. 1905 ・The Forum of Japanese Life Insurers was reorganized into the Association of Japanese Life Insurers. 1908 ・The Association of Japanese Life Insurers was authorized as an incorporated association. 1942 ・The Life Insurance Control Association was founded. The Association of Japanese Life Insurers was

renamed the Life Insurance Network, and most of its operations were transferred to the Life Insurance Control Association.

1945 ・The Life Insurance Council of Japan was founded to take over the operations of the Control Association after it was dissolved. The Life Insurance Network was renamed The Life Insurance Association of Japan (LIAJ). All the operations of the Life Insurance Network were transferred to the LIAJ.

2008 ・The LIAJ marked the 100th anniversary since its foundation. 2014 ・The LIAJ made a transition from an incorporated association to a general incorporated association.

4) Membership All 41 life insurance companies operating in Japan (As of December 31, 2016)

5) Board Members Representatives of member companies and full-time officers of the LIAJ (See page 40 for the list of Board Members.)

6) Offices 52 offices (the headquarters in Tokyo and 51 local offices) (As of December 31, 2016)

7) Number of Employees 268 employees (As of December 31, 2016)

8) Funding Membership fees and revenues from business activities such as examination business (Budget for fiscal 2015: approx. 5.24 billion yen, of which 4.14 billion yen from membership fees and 1.05 billion yen from revenues from business activities)



Organization Chart (As of December 31, 2016)

The Life Insurance Association of Japan (LIAJ)

Life Insurance Consultation

Center

Local Committees

Committees Association Office

Auditors

Board of Directors

General Meeting

General Affairs Dept.

Public Relations Dept.

Administration & Education Dept.

Planning Dept.

Research Dept.

Joint System Office

Life Insurance Consultation Office

International Dept.

Local Offices (51 Districts)

Arbitration Advisory

Committee

Arbitration Council



40

Board Members(As of December 31, 2016)

Chairman Akio Negishi President, Meiji Yasuda Life Insurance Company

Vice Chairmen Masahiro Hashimoto President and Chief Executive Officer, Sumitomo Life Insurance Co. Minoru Kudo Representative Director and President, Daido Life Insurance Co.

Directors Yoshinobu Tsutsui President, Nippon Life Insurance Co. Shinichi Hirose Member of the Board, President, Tokio Marine & Nichido Life Insurance Co., Ltd. Yasunori Kume Representative, CARDIF Assurance Vie Koichiro Watanabe President, THE DAI-ICHI LIFE INSURANCE COMPANY, LIMITED Tomoo Hagimoto President and Representative Director, Sony Life Insurance Co., Ltd. Akira Nishino Representative Director and President, AEGON Sony Life Insurance Co., Ltd. Kaoru Takahashi President & CEO, Sompo Japan Nipponkoa Himawari Life Insurance, Inc. Kazunori Kataoka President, ORIX Life Insurance Corporation

Hitoshi Morita President & CEO, Representative Executive Officer, Manulife Life Insurance Company

Mitsuru Imoto Representative Director and President, MassMutual Life Insurance Company Yoshiteru Yoneyama President, Fukoku Mutual Life Insurance Co. Shoichiro Ichitani President and Chief Executive Officer, The Prudential Life Insurance Co., Ltd. Norimitsu Shimada Executive Managing Director, NN Life Insurance Company, Ltd.

Norio Tomono Representative Director, President and COO, AIG Fuji Life Insurance Company, Limited

Tomohiko Komoto Director, Representative Executive Officer, Deputy President and Chief Distribution Officer, AXA Life Insurance Co., Ltd.

Hiroshi Yamauchi President of Aflac Japan, Representative in Japan of Aflac, American Family Life Assurance Company of Columbus

Eiji Hirano Director, Representative Statutory Executive Officer and Vice Chairman, MetLife Insurance K.K.

Hitoshige Tambo President, Mitsui Sumitomo Aioi Life Insurance Co., Limited

Vice Chairmen Toyonari Sasaki The Life Insurance Association of Japan (Full-time) Ichiro Wakasa The Life Insurance Association of Japan (Full-time)

Director Kazushige Mori The Life Insurance Association of Japan (Full-time)

Auditors Daisuke Iwase President & Representative Director, LIFENET INSURANCE COMPANY Yuzo Hashiya President and Representative Director, Rakuten Life Insurance Co., Ltd. Yoshiki Sato President, Asahi Mutual Life Insurance Co. Kazuo Ohtake Attorney at Law



Member Companies

(As of December 31, 2016, in alphabetical order)

AEGON Sony Life Insurance Co., Ltd. http://www.aegonsonylife.co.jp/ Aoyama Oval Building, 5-52-2 Jingumae, Shibuya-ku, Tokyo 150-0001

AIG Fuji Life Insurance Company, Limited http://www.aig-fuji-life.co.jp/Kamiyacho MT building, 4-3-20 Toranomon, Minato-ku, Tokyo 105-8633

Allianz Life Insurance Japan Ltd. http://life.allianz.co.jp/Anzen Building, 1-6-6 Motoakasaka, Minato-ku, Tokyo 107-0051

American Family Life Assurance Company of Columbus http://www.aflac.co.jp/Shinjuku Mitsui Building, 2-1-1 Nishi-shinjuku, Shinjuku-ku, Tokyo 163-0456

Asahi Mutual Life Insurance Co. http://www.asahi-life.co.jp/Asahi Seimei Otemachi Building, 2-6-1 Otemachi, Chiyoda-ku, Tokyo 100-8103

AXA Life Insurance Co., Ltd. http://www.axa.co.jp/NBF Platinum Tower, 1-17-3 Shirokane, Minato-ku, Tokyo 108-8020

AXA Direct Life Insurance Company Limited http://www.axa-direct-life.co.jp/8th Floor, KDX Kojimachi Building, 3-3-4 Kojimachi, Chiyoda-ku, Tokyo 102-0083

CARDIF Assurance Vie http://www.cardif.co.jp/9th Floor, Shibuya Infoss Tower, 20-1 Sakuragaoka-cho, Shibuya-ku, Tokyo 150-0031

Crédit Agricole Life Insurance Company Japan Ltd. http://www.ca-life.jp/15th Floor, Shiodome Sumitomo Building, 1-9-2 Higashi-Shimbashi, Minato-ku, Tokyo 105-0021

Daido Life Insurance Co. http://www.daido-life.co.jp/1-2-1 Edobori, Nishi-ku, Osaka-shi 550-0002

Fukoku Mutual Life Insurance Co. http://www.fukoku-life.co.jp/2-2-2 Uchisaiwaicho, Chiyoda-ku, Tokyo 100-0011

Fukokushinrai Life Insurance Co., Ltd. http://www.fukokushinrai.co.jp/8-17-1 Nishi-Shinjuku, Shinjuku-ku, Tokyo 160-6132

JAPAN POST INSURANCE Co., Ltd. http://www.jp-life.japanpost.jp/1-3-2 Kasumigaseki, Chiyoda-ku, Tokyo 100-8798

LIFENET INSURANCE COMPANY http://www.lifenet-seimei.co.jp/Kojimachi NK Building, 2-14-2, Chiyoda-ku, Tokyo 102-0083

Manulife Life Insurance Company http://www.manulife.co.jp/3-20-2 Nishi-shinjuku, Shinjuku-ku, Tokyo 163-1430

MassMutual Life Insurance Company http://www.massmutual.co.jp/2-1-1 Osaki, Shinagawa-ku, Tokyo 141-6023

Medicare Life Insurance Co., Ltd. http://www.medicarelife.com/5th Floor, Sumitomo-seimei Kiyosumi Park Building, 1-11-12 Fukagawa, Koto-ku, Tokyo 135-0033

Meiji Yasuda Life Insurance Company http://www.meijiyasuda.co.jp/2-1-1 Marunouchi, Chiyoda-ku, Tokyo 100-0005

MetLife Insurance K.K. http://www.metlife.co.jp/4-1-3 Taihei , Sumida-ku, Tokyo 130-0012

Midori Life Insurance Company http://www.midori-life.com/6-3-43 Ohji, Kita-ku, Tokyo 114-8595

Mitsui Life Insurance Company Limited http://www.mitsui-seimei.co.jp/1-1-20 Aomi, Koto-ku, Tokyo 135-8222



42

Mitsui Sumitomo Aioi Life Insurance Co., Limited. http://www.msa-life.co.jp/2-27-2, Shinkawa, Chuo-ku, Tokyo 104-8258

Mitsui Sumitomo Primary Life Insurance Company, Limited http://www.ms-primary.com/16th Floor, Yaesu First Financial Building, 1-3-7 Yaesu, Chuo-ku, Tokyo 103-0028

Nippon Life Insurance Co. http://www.nissay.co.jp/3-5-12 Imabashi, Chuo-ku, Osaka-shi 541-8501

NN Life Insurance Company, Ltd. https://www.nnlife.co.jp/26th Floor, New Ohtani Garden Court, 4-1 Kioicho, Chiyoda-ku, Tokyo 102-0094

ORIX Life Insurance Corporation http://www.orixlife.co.jp/Akasaka Star Gate Plaza, 2-3-5 Akasaka, Minato-ku, Tokyo 107-0052

Rakuten Life Insurance Co., Ltd. http://www.rakuten-life.co.jp/Rakuten Crimson House, 1-14-1 Tamagawa, Setagaya-ku, Tokyo 185-0094

SBI Life Insurance Co., Ltd. http://www.sbilife.co.jp/ Shinjuku NS Building, 2-4-1 Nishi-shinjuku, Shinjuku-ku, Tokyo 163-0822

Sompo Japan Nipponkoa Himawari Life Insurance, Inc. http://www.himawari-life.co.jp/ Shinjuku Central Park Building, 6-13-1 Nishi-Shinjuku, Shinjuku-ku, Tokyo 163-8626 Sony Life Insurance Co., Ltd. http://www.sonylife.co.jp/Otemachi Financial City Grand Cube, 1-9-2 Otemachi, Chiyoda-ku, Tokyo 100-8179

Sumitomo Life Insurance Co. http://www.sumitomolife.co.jp/1-4-35 Shiromi, Chuo-ku, Osaka-shi 540-8512

THE DAI-ICHI LIFE INSURANCE COMPANY, LIMITED http://www.dai-ichi-life.co.jp/1-13-1 Yurakucho, Chiyoda-ku, Tokyo 100-8411

The Dai-ichi Frontier Life Insurance Co. Ltd. http://www.d-frontier-life.co.jp/17th Floor, Osaki Wiz Tower, 2-11-1 Osaki, Shinagawa-ku, Tokyo 141-0032

The Gibraltar Life Insurance Co., Ltd. http://www.gib-life.co.jp/Prudential Tower, 2-13-10 Nagata-cho, Chiyoda-ku, Tokyo 100-8953

The Neo First Life Insurance Company, Limited http://neofirst.co.jp/ Osaki Wiz Tower, 2-11-1 Osaki, Shinagawa-ku, Tokyo 141-0032 The Prudential Life Insurance Co., Ltd. http://www.prudential.co.jp/

Prudential Tower, 2-13-10 Nagata-cho, Chiyoda-ku, Tokyo 100-0014The Prudential Gibraltar Financial Life Insurance Co., Ltd. http://www.pgf-life.co.jp/

Prudential Tower, 2-13-10 Nagata-cho, Chiyoda-ku, Tokyo 100-0014 Taiyo Life Insurance Company http://www.taiyo-seimei.co.jp/

2-7-1 Nihombashi, Chuo-ku, Tokyo 105-0022Tokio Marine & Nichido Life Insurance Co., Ltd. http://www.tmn-anshin.co.jp/

Tokio Marine Nichido Building Shinkan, 1-2-1 Marunouchi, Chiyoda-ku, Tokyo 100-0005T & D FINANCIAL LIFE INSURANCE COMPANY http://www.tdf-life.co.jp/1-1-1 Shibaura, Minato-ku, Tokyo 105-0023

Zurich Life Insurance Company Ltd. http://www.zurichlife.co.jp/16th Floor, Nakano Central Park South, 4-10-2 Nakano, Nakano-ku, Tokyo 164-0001



b) The LIAJ's Main Activities for Fiscal 2015

I) Activities to provide information and promote understanding on the life insurance business Holding Interactive Dialogues on Life Insurance and Periodical Engagement with Consumers'

Groups/Organizations The LIAJ holds the "Interactive Dialogue on Life Insurance" in cooperation with the Japan Institute of Life Insurance (JILI), with the aim of promoting a proper understanding of the life insurance business through dialogues with consumer groups/organizations. In fiscal 2015, the LIAJ held 129 meetings in total across Japan with consumers' groups/organizations and journalists. Additionally, the LIAJ periodically visits such organizations to provide information and hear their opinions on the life insurance industry and the LIAJ's activities.

Providing Basic Information and Knowledge about Life Insurance on the Website The LIAJ posts basic life insurance information and knowledge on its website, covering various topics. Also, using a "Quick Search for Life Insurance Products" on the LIAJ's website, customers can find relevant information on life insurance products.

Publication of a Summary of Life Insurance Statistics The LIAJ collects statistics on the life insurance business of all life insurers monthly, quarterly, and annually, and publishes these on its website. In addition, the LIAJ prepares and publishes "Life Insurance Fact Book" which summarizes the key performance of life insurers and the results of the life insurance industry, and "Statistical Data Package of Life Insurance Market in Japan" which contains detailed statistical data of life insurers.

Review and Further Refinement of Standards for Disclosure Laws stipulate detailed items to be disclosed by life insurers regarding their business operation. The LIAJ has also prepared a set of industry-wide "Standards for Disclosure" with additional items that it considers should be voluntarily added by member companies in the light of usefulness for customers and investors. The LIAJ reviews these standards every year for possible refinement.

Publication of a Guidebook on Financial Reports of Life Insurers The LIAJ has prepared a guidebook on financial reports of life insurers to help customers better understand business conditions of life insurers and has published it on their website.

Providing Disclosure Materials of Life Insurers In addition to prepare disclosure materials of life insurers in the LIAJ's headquarters and local offices, the LIAJ provides them to about 400 consumer centers across Japan in order to improve access to the materials. Materials regarding financial results, statistics for first half year and quarterly statistics of life insurers are also available on the LIAJ's website.

II) Consultation services, complaint processing and dispute resolution operations regarding life insurance Life Insurance Consultation Center

The LIAJ is designated by the FSA as a designated dispute resolution body based on the Insurance Business Act, and therefore processes complaints and resolves disputes related to the life insurance business. In order to conduct those activities, the Life Insurance Consultation Center was established within the LIAJ. The Center aims to raise public understanding of and trust in life insurance as well as help protect policyholders' legitimate interests. The Center investigates the cases in a prompt and transparent manner from a fair and neutral position upon receiving an inquiry or complaint about life insurance or an application for dispute resolution procedures. The Center operates its services based on the "Operational Rules for a Designated Dispute Resolution Body for (foreign) Life Insurance Business" which was authorized by the FSA.



44

Appropriate Handling from a Fair and Neutral Position of Consumers' Inquiries and Complaints Received In the Life Insurance Consultation Center (including Life Insurance Consultation Office (Tokyo), and the Center's corresponding 51 local offices in every prefecture), expert consultants deal with inquiries and complaints from a neutral position. When the Center receives a request to resolve a complaint, it strives to reach an early settlement such as by making requests for a settlement and by mediating settlements with the life insurers involved. Number of inquiries and complaints

Fiscal 2014 Fiscal 2015 General Inquiries 6,067 6,064Complaints 5,186 4,724Total 11,253 10,788

Dispute Resolution by "Arbitration Council" When a customer files a complaint with the Center, the Center facilitates communication between the life insurer involved and the customer to reach a settlement. In principle, if they cannot reach a settlement within one month, the Center convenes the Arbitration Council to resolve the dispute. In response to the increase in the number of filings in fiscal 2014 after its operational reforms, the number of committee members was increased by 5 during fiscal 2015 and 2016. The Arbitration Council currently consists of 15 members (6 lawyers, 6 consumer advisors and 3 staff of the Life Insurance Consultation Center) and strives to resolve the dispute appropriately from a fair and neutral position. Flow of Procedure to Apply for the Arbitration Council

Number of Filings for Procedures of the Arbitration CouncilFY 2008 2009 2010 2011 2012 2013 2014 2015

Number 82 122 172 260 208 202 194 312



Establishment of Arbitration Advisory Committee Consisting of External Experts The Life Insurance Consultation Center established the Arbitration Advisory Committee consisting of external experts such as scholars, lawyers, doctors, representatives of consumer organizations and full-time executives of the LIAJ. In addition to responding to consultations by the Head of the Life Insurance Consultation Center (Chairman of the LIAJ), the Arbitration Advisory Committee makes recommendations and proposals, as appropriate, to ensure fair and smooth operation of the Center's business and the Arbitration Council. The Center has a scheme for reflecting those recommendations and proposals in the measures of the LIAJ and member companies.

Provision of Information regarding Consultations and Complaints The Center publishes the annual "Life Insurance Consultation Center Report" and "Summaries of Arbitration", which summarize the inquiries and complaints received during the year. To help prevent disputes and their recurrence, the Center also prepares the quarterly "Voice Report" (sector-wide basis and individual insurer basis), which provides information about inquiries and complaints in categories, their numbers, as well as typical complaints that have been filed. In addition, the LIAJ discloses the number of complaints by company on its website to ensure a neutral, fair and transparent process for complaint handling.

Reflecting Complaints in Improvement of Management The life insurance industry is struggling to reflect complaints in improvement of their management. To help make customers aware of the trend of complaints and how member companies deal with their complaints, the LIAJ discloses information including the number and details of complaints as well as those of payment/non-payment of insurance claims on the LIAJ's and member companies' websites.

III) Activities regarding systems and measures to ensure appropriate operation of the life insurance business Development of the Code of Conduct for Member Companies

In order to achieve greater reliability on insurance business, the LIAJ has developed the "Code of Conduct" that member companies and their officers/employees must follow. The Code of Conduct consists of the "Principles of Conducts", the principles and criteria which should be complied with by each life insurer and its employees as they operate a company and conduct business, and the "Action Guidelines" that should also be complied with.

Development and Review of Voluntary Guidelines suggesting Practical Points to Consider To help life insurers to provide appropriate handling and best services for policyholders, from arranging the contract to the payment of benefits, the LIAJ has developed voluntary guidelines which suggest practical transactions and points to consider. These guidelines are referred to by each member company and their executives and regular employees, and are periodically reviewed by the LIAJ.

Collection of Best Practices to Reflect in Improvement of Management The LIAJ had conducted "Follow-Up Survey" to monitor the measures taken by member companies in accordance with voluntary guidelines and to better reflect objectives of the guidelines in their management. Meanwhile, Consumers' Opinions Task Force, the cross-sectional body within the LIAJ, had conducted survey to collect and analyze information on counseling, complaints, opinions or requests, and to collect member companies' initiatives in the field where many complaints or requests were seen. Since 2015, these two surveys were integrated into the regular "Value-Up Survey" to monitor the measures taken by member companies in accordance with the voluntary guidelines. Through collecting and sharing examples of practices adopted by member companies to improve customer services including measures reflecting the opinions and requests from consumers and through improving the PDCA management cycle within member companies, the LIAJ encourages them to adopt the guidelines in their management.



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Efforts to Address Revisions to the Insurance Business Act and Encouraging Establishment of Management Systems for Appropriate Solicitation As the business environment surrounding the Japanese insurance market is changing significantly (e.g. diversification of the distribution channel), partial revisions were made to the Insurance Business Act fully implemented on May 29, 2016 to introduce fundamental rules for insurance solicitation (e.g. obligation to confirm customers' intention and to provide necessary information) and obligation on insurance agencies to have management systems for appropriate solicitation in place. The LIAJ encourages the member companies' establishment and operation of management systems for appropriate solicitation by compiling and publishing a commentary in the form of questions and answers on main points of the revision and drawing up "Guidelines for Insurance Agents to Have Management Systems for Appropriate Solicitation in Place" and "Guidelines for Solicitation-related Activities".

Activities as Authorized Personal Information Protection Organization The LIAJ was accredited as an Authorized Personal Information Protection Organization by the Financial Services Agency under the Act on the Protection of Personal Information in April 2005. The LIAJ developed the Personal Information Protection Guidelines and provides guidance or recommendations on complying with the guidelines to each member company, and also receives related complaints from customers and shares them with member companies.

The Social Security and Tax Number SystemOn May 24, 2013, the Act on the Use of Numbers to Identify a Specific Individual in the Administrative Procedure was enacted, which prescribes the Social Security and Tax Number System. Under this system, mayors issue a single 12-digit Individual Number (as known as "My Number") to each resident in Japan, with the aim of improving administrative efficiency, enhancing public convenience, and realizing a more equal and fair society. Each person holding a resident record was notified of their own Individual Number from October 2015, which is used sequentially for administrative procedures related to social security, taxation, and disaster response beginning in January 1, 2016. Life insurance companies need to apply the procedure such as obtaining Individual Numbers of policyholders and beneficiaries, including the numbers on payment records, and submitting the records to tax offices following the initiation of the system. On the other hand, if the Social Security and Tax Number System is expanded in the future to enable all life insurance companies to utilize the system, each insurance company will be able to access administrative information with the prior consent of their customers, even in daily operation. Each insurance company will be capable of making prompt and concrete claims procedure as well as providing appropriate maintenance service, and therefore, since life insurance sector plays a public role to support the public security, contributing to realize safe, secure and affluent life for the citizens.

Measures to Prevent Abuse of Life Insurance Life insurance has the risk to be abused to make illegitimate profits (moral risk). The LIAJ is taking various measures to mitigate this moral risks as well as cooperating with the police's investigation to avoid overlooking of death caused by crimes. Policy Data Registration System

When life insurance companies receive an application for insurance policy (including riders like death benefit and hospitalization benefit), the relevant data of policyholders may be stored at the registration center within the LIAJ. Life insurance companies refer to the registered details to judge whether to accept a contract or whether to pay claims for death or hospitalization benefits, to prevent attempts to receive insurance claims fraudulently by enrolling in several insurance policies for short periods.

Policy Data Inquiry System Life insurance companies and the National Mutual Insurance Federation of Agricultural Cooperatives (Zenkyoren) have jointly operated the Policy Data Inquiry System to contribute to the sound development of life insurance and cooperative systems since April 2002. Under the system, the data held by Zenkyoren and the data registered in the Policy Data Registration System by the LIAJ can be



cross-referenced. They refer to the registered details to judge whether to accept a contract or whether to pay claims for death or hospitalization benefits.

Cross Reference System for Assessing Insurance Claims Upon receiving an insurance claim, participating insurance companies cross-reference each other's data on policyholders. They then use the information when deciding whether to accept a claim from a policyholder.

Liaison Conference between Life Insurers and the Police In order to prevent the criminal abuse of life insurance, the LIAJ holds liaison meetings with the National Police Agency. The "Liaison Conference between Life Insurers and the Police" is held between the LIAJ's 52 local offices and municipal police headquarters to exchange information on organized crime groups, special frauds and prevention of moral hazard.

Measures against Special Frauds Against special fraud, which has become a social issue, the LIAJ creates posters to call consumers' attention in collaboration with the National Police Agency and the Financial Services Agency in addition to distributing flyers to attract consumers' attention in its local offices across Japan.

Measures against Money Laundering The LIAJ creates a handbook, a commentary in the form of questions and answers and a poster to be displayed for customers, to raise life insurance companies' understanding regarding money laundering.

Measures against Anti-social Forces The LIAJ has, in the Code of Conduct, declared its commitment to cutting off any relations with anti-social forces (ASF). In this regard, the LIAJ is taking measures such as encouraging member companies to add a clause that enables insurers to terminate their contracts with ASF into the policy clauses, establishing a database regarding anti-social forces for member companies' reference, and holding discussions with other organizations in order to dissolve any insurance contracts with ASF or related parties.

Efforts to combat Tax Evasion Foreign Account Tax Compliance Act

On March 18, 2010, the Foreign Account Tax Compliance Act (FATCA) was enacted in the U.S. as part of the Hiring Incentives to Restore Employment Act of 2010, with the aim of preventing tax evasion by U.S. taxpayers using offshore financial accounts. Under the Act, foreign financial institutions outside of the U.S. are required to report certain information about financial accounts held by U.S. taxpayers directly to the U.S Internal Revenue Service (IRS). As of July 1, 2014, in accordance with the "Statement of Mutual Cooperation and Understanding between the U.S. Department of the Treasury and the Authorities of Japan to Improve International Tax Compliance and to Facilitate Implementation of FATCA", Japanese life insurance companies started implementing the due diligence procedures to identify certain financial accounts held by U.S. taxpayers when concluding life insurance policy. And also, they started reporting the account information to the IRS when the customers are identified as U.S. taxpayers.

OECD Common Reporting StandardFollowing the increased demands for uniforming information exchanged between each country with the aim of preventing tax evasion in accordance with the Automatic Exchange of Financial Account Information (AEOI), the OECD also released a full version of Common Reporting Standard (CRS) for AEOI prepared by the OECD Committee on Fiscal Affairs on July 21, 2014. As for Japan, the Cabinet approved the implementation of the CRS, beginning January 1, 2018 (i.e. committed to first automatic exchange of information in 2018) on January 14, 2015. In Japan, relevant legislations to support CRS were published on March 31, 2015, which will come into force on January 1, 2017. The legislations will require life insurance companies in Japan to collect and report to the National Tax Agency, non-resident account holder information sorted by residence jurisdiction, after identifying the residence of the account holder by following due diligence procedures.



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LINC (The Life Insurance Network Center) The life insurance industry established an industry-wide network system called the Life Insurance Network Center, or LINC in 1986. This network has been striving to enrich their services to improve information security in the insurance industry, and also reduces the burden of clerical work for client companies. With several improvements to the network system since its establishment, the Center currently operates the following 12 systems.

System Outline of Functions

1Inter-network settlement system among member companies

To enable fund settlement among life insurers.

2

Data exchange system on individual policies whose monthly premiums are collected through payrolls

To integrate data on individual policies whose premiums are collected through payroll deduction and exchange them between life insurers and client companies which make payroll deductions.

3Data exchange system on asset-formation insurance

To act as an intermediary for exchanging data on asset-formation insurance.

4Registration system on medical care insurance

To register the details of medical care insurance contracts to check whether the same person is designated as a medical care insured with several insurance companies.

5Registration system on life insurance solicitors

To perform application procedures for registration of life insurance solicitors and manage the register.

6Registration system on policy data

To register the details of contracts to check contracts which designate the same person as a beneficiary of hospitalization and death benefits in order to prevent moral hazard.

7Data distribution system on National Pension Fund insurance

To collect and distribute data on National Pension Fund insurance contracts to life insurers offering the insurance.

8Data exchange system on life insurance business statistics

To collect statistical data from life insurers to prepare materials on the business performance of the life insurance industry.

9Data exchange system on joint Employee's Pension Fund Insurance Report

To exchange data between life insurers and trust banks to prepare the joint report on the Employees' Pension Fund.

10Cross referencing system for assessing insurance claims

To cross-reference contracts among life insurers when a claim is filed for insurance benefits and mutual aid money in order to judge whether to pay the benefits, cancel the contracts or allow the contracts to lapse in order to prevent moral hazard.

11Data exchange system on corporate pension plans among principal companies

To exchange settlement data on Employees' Pension Funds and Defined Benefit Corporate Pensions among principal life insurers and principal trust companies.

12Statistics collection system on incidence rates including mortality

To collect survey data on incidence rates including mortality from life insurers and prepare statistical materials.



Promotion of Initiatives to Ensure Appropriate Business Operation Examination for Life Insurance Claims Assessors

The LIAJ has been conducting the "Exam for Life Insurance Claims Assessors" since fiscal 2007. This exam encourages staff who handle claims at life insurers to acquire the basic knowledge and good judgment required by the staff with the aim of fostering such human resources, and maintaining and improving their abilities in the light of securing proper payout practices.

Examination for Life Insurance Interviewers When an applicant applies for a contract, whether to accept the contract is determined based on, for example, the declaration form or a doctor's medical examination. As a way of determination, the life insurance interviewer interviews the insured and checks their health. The LIAJ administers qualification exam for interviewers.

Development of Measures to prepare for Disasters To fulfill the social mission of the life insurance industry, the LIAJ takes several measures to continue its important business such as payment of insurance benefits, even in extraordinary situations such as a serious disaster or a pandemic of a new strain of influenza. Also, in light of the lessons learnt from the Great East Japan Earthquake, life insurance companies reviewed and improved their countermeasures against disaster as well as their services and business procedures. Life insurance companies reviewed their business continuity plan (BCP) after the earthquake, and is striving to enhance their customer services in ordinary situations.

Operation of the Center for Locating Life Insurance Contracts in Disaster Areas The LIAJ is operating the Center for Locating Life Insurance Contracts in Disaster Areas after the Great East Japan Earthquake for those who were struck by disasters in designated disaster areas. Under this search system, all member companies search for relevant insurance contracts for people who struggle to claim insurance benefits because they have lost evidence of their contracts in a disaster or are not sure of their insurance companies. Currently, the scope of this system has been expanded to any cases where people have lost evidence of insurance contracts in an area covered by the Disaster Relief Act.

IV) Activities regarding education and training for the staff of member companies Common-to-Industry Educational System for Life Insurance Solicitors

Under the laws and regulations, tied sales agents and sales representatives at agencies need to be registered with the FSA to sell life insurance products as life insurance solicitors. The LIAJ administers the "General Course Exam" to check the knowledge, quality and capacity of candidates seeking registration. The LIAJ also administers the "Professional Course Exam", "Advanced Professional Course Exam" and "College Course Exam" in order to satisfy customers' needs more appropriately. In addition, the LIAJ administers the "Variable Life Insurance Sales Qualification Course Exam" for insurance solicitors to acquire knowledge necessary to sell variable life insurance/annuities. The LIAJ reviews and enhances the content of the textbooks for those examinations every year.



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Chart of Common-to-industry Educational System

Purpose and Summary of Each Exam Exam Purpose Description

General Course To gain a basic knowledge on life insurance required by a tied

sales agent/sales rep at an agency.

・Compliance at the time of soliciting insurance

・Importance of maintenance and services after sales

Professional Course

To acquire more extensive expertise and related knowledge on

insurance solicitation based on the core knowledge gained in

the General Course.

・Knowledge about other financial sectors

・Social security and corporate benefit system

Advanced

Professional Course

To cultivate applicable and practical ability and acquire

comprehensive knowledge essential for financial planning

services.

・Categories of tax and its calculation

・Public pension program

College Course

To further acquire life insurance and related knowledge at an

expert level. This course is the highest course in the

common-to-industry educational system.

・Financial planning

・Study on individual / corporate insurance products

Variable Life

Insurance Sales

Qualification

To acquire knowledge on the characteristics and mechanisms

of variable products.

・Types of variable life insurance and its mechanism

・Prohibited matters and issues in soliciting variable

products

Continuing Education System for Life Insurance Solicitors The LIAJ has a system for continuous education of all life insurance solicitors ("Continuing Education System") once a year in principle so that they can conduct solicitation activities with an emphasis on customer satisfaction and compliance. The LIAJ also conducts follow-up activities every year to enhance the continuing education system.

Training for Professional Course Exam

(2 days, 12 hours or more)

Professional Course Exam

Pass

Life Consultant

Training for Variable Life Insurance Sales

Qualification Exam(2 days, 10 hours or more)

Variable Life Insurance Sales Qualification Exam

Pass

Registration(LIAJ)

Advanced Professional Course Exam

Pass

Senior Life Consultant

College Course Exam

Pass

Total Life Consultant

Orientation(more than 1 day)

Initiation

Pre-registration training

(Min. 8 days, 30 subjects, 32 hours)

General Course Exam

Registration (Regional Finance

Bureau)

Post-registration training period

(Min. 7 days, 15 subjects, 28 hours)

OJT(1 month after registration)

Pass



Life Insurance Course This course is for staff engaged in the life insurance business, with the aim of imparting the basic knowledge required to work in the life insurance industry. The course consists of eight subjects: "Introduction to Life Insurance", "Life Insurance Actuarial Science", "Risk Selection", "Contractual Provision and Law", "Life Insurance Products and Sales", "Life Insurance Accounting", "Asset Management" and "Life Insurance and Tax Law". The LIAJ publishes the text and operates the exam for each subject.

VI) Activities regarding making requests and proposals to relevant authorities, agencies and organizations Requests on Tax Reform

Recognizing the current situation the social security system is in, the LIAJ believes it is important that public security and private security fulfill their respective roles to support people's financial security. Pursuing the idea of "double (public and private) pillared financial security", the LIAJ will continue to request expansion of tax deduction and other schemes that encourages self-help efforts toward enhanced private protection scheme.

Continued Research on Enhancement of Stock Value for 42 Years The LIAJ has conducted research on the efforts of listed companies and institutional investors regarding the enhancement of stock value for 42 years since fiscal 1974. In the context of the Japan's Corporate Governance Code that entered into force in June 2015, the research focused on dialogue between issuers and shareholders and on corporate governance, giving due consideration to the Japan's Stewardship Code that was introduced in 2014. The LIAJ published its requests to investors as well as to companies from the perspectives of corporate governance, business objectives, and dialogues. The LIAJ hopes that its research will help to enhance stock value as well as revitalize stock markets in the medium- and long-term.

Follow-up Activities on Postal PrivatizationSince the government announced its plans to privatize the nation's postal service in the cabinet's "Basic Policy" and established the government-owned Japan Post in 2003, after continuous discussions on postal privatization within the government, bills of the Postal Service Privatization Act and related acts were passed in 2005. Following this enactment, Japan Post Holdings Co., Ltd. and Japan Post Insurance were established and announced plans to be listed in December 2014. They were successfully listed on the Tokyo Stock Exchange on November 4, 2015. On April 1, 2016, the cap on the amount of additional coverage, which is allowed after four years from the date of conclusion, was raised to 10 million yen from 3 million yen and, as the result, the cap on the amount of total coverage was raised to 20 million yen from 13 million yen. In this context, the LIAJ has continued to express opinions that we can never agree to any increase in the cap on the amount of insurance coverage or any expansion of business scope of Japan Post Insurance without ensuring a level playing field and introducing an appropriate control system.

Comments on Global Standards for Insurance Supervision and International Financial Reporting Standards Amid the ongoing globalization of the insurance industry, discussions have been held on developing global standards for insurance supervision at the International Association of Insurance Supervisors and on developing International Financial Reporting Standards for insurance contracts at the International Accounting Standards Board. The LIAJ submits various comments to input to such discussions in order for the standards to appropriately reflect the characteristics of the life insurance business in Japan. Furthermore, in order to strengthen the voice of the insurance industry, the LIAJ is stepping up cooperation with insurance associations in other jurisdictions by joining the Global Federation of Insurance Associations (GFIA) which was established in October 2012.



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Commitment to the Global Federation of Insurance Associations The LIAJ is a founding member of the Global Federation of Insurance Associations, which was established in October 2012 with the aim of increasing effectiveness in providing input and to exchanging information more effectively between insurance associations. The LIAJ will continue to commit to the GFIA effectively to increase industry effectiveness in providing input to international bodies such as the IAIS, and will contribute to further development of the GFIA.

About the Global Federation of Insurance Associations (GFIA)The GFIA is a non-profit association established to represent national and regional insurance associations. Currently, its 41 member associations represent insurers and reinsurers in 60 countries that account for around 87% of total insurance premiums worldwide.

Conclusion of Memorandum of Understanding (MoU) with Overseas Life Insurance Associations The LIAJ has concluded MoU with Korea Life Insurance Association (KLIA) in July 2015, with the aim of promoting the cooperative relationship and mutual understanding between both associations and to exchange views and information on matters and activities of common interest.

VII) Activities to fulfill social responsibilities The Project to Support Working Parents with Small Children - For Further Promotion of Active

Participation by Women For further promotion of active participation by women and to address the issue of children on nursery school waiting lists, the LIAJ aims to create an environment where working mothers need not to feel that they are compromising on child rearing. Since fiscal 2014, the LIAJ has subsidized specific projects to increase the facility capacity as well as projects to improve the quality of day nurseries/clubs for after-school activities for children. In fiscal 2015, the LIAJ provided subsidies to 80 facilities, totaling 21 million yen.

Subsidy Program for Elderly Support Organizations - Staying Healthy in Old Age Considering the society of accelerated aging of the population, it is of great importance to establish a society where everyone can enrich their life in good health for all time, and to facilitate health promotion so that they can live out their natural life span. The LIAJ has been providing subsidies to private non-profit organizations and groups which engage in activities targeted for the elderly to facilitate health care and health promotion, to promote independence of the elderly and to help them to live a meaningful life since fiscal 2014. The LIAJ decided to provide subsidies to 42 organizations, totaling 5 million yen in fiscal 2015.

Activities to Enhance Family Bonds by Reading Picture Books to Children The LIAJ has engaged in "Activities to Enhance Family Bonds by Reading Picture Books to Children" since fiscal 2008 to enhance family bonds. In fiscal 2015, the LIAJ helped to hold the "JPIC* Workshop for the Supporters of Reading Picture Books" and contributed to provision of opportunities for people to spend more time with their families by promoting reading of picture books. In fiscal 2015, the workshops were held in 33 regions and the number of participant was 2,957 in total. The LIAJ encourages the participants to hold sessions for reading picture books to children based on what they learned at the workshops, and provides the set of books for the sessions (22,320 sets were provided in fiscal 2015). * Japan Publishing Industry Foundation for Culture

Supporting Education of Care Workers, the Provider of Elderly Care Care workers are expected to play a crucial role in providing elderly care. In order to support them, the "Scholarship Program for Education of Care Workers" has been run for 27 years since fiscal 1989. The recipients of the scholarship in the past are playing leading roles as care workers across the country. In fiscal 2015, the LIAJ provided scholarship of annually 240 thousand yen per person (free of repayment obligation) to 199 students

Scholarship Program for International Students in Japan (Seiho Scholarship Program) This scholarship (for two years, free of repayment obligation) has been provided to 355 international students from Southeast Asia and East Asia as an international contribution to assist human exchanges.



Encouraging Efforts against Environmental Issues with Numerical Targets The life insurance industry is committed to addressing environmental issues by developing the Life Insurance Industry's Action Guidelines for Environmental Issues, the Life insurance Industry's Commitment to a Low Carbon Society, and also by setting a numerical target for reducing electricity consumption as well as sharing information on member companies' efforts. The LIAJ set the reduction targets for fiscal 2020 and from fiscal 2020 until fiscal 2030 in accordance with the "Nippon Keidanren's Commitment to a Low-Carbon Society" and is encouraging active efforts against encouraging issues. The LIAJ also conducts follow-up activities every year to further encourage efforts made by member companies.

The Life Insurance Association of Japan (LIAJ)

3rd floor, Shin-Kokusai Building, 4-1 Marunouchi 3-Chome, Chiyoda-ku, Tokyo 100-0005 Japan

Telephone: +81-3-3286-2652 Facsimile: +81-3-3201-6713 http://www.seiho.or.jp/

Published in February 2017

Documents

LIFE INSURANCE BUSINESS IN JAPAN · Life Insurance Business in Japan at a Glance Number of Companies 41 Companies － Domestic company: 25 － Subsidiary of foreign company: 13 －