23-D-1467
January 31, 2024

Japan Credit Rating Agency, Ltd. (JCR) announces the following credit rating.

Asahi Mutual Life Insurance Company (security code: -)<Assignment>
Subordinated Loan:

BBB

Rationale<Issuer's Profile>
Asahi Mutual Life Insurance Company (the “Company”) is the core company of Asahi Mutual Life
Insurance Group (the “Group”). Having Nanairo Life Insurance Co., Ltd. (“Nanairo Life”), which assumes
agency business, and other companies, the Group’s business size is rather small in terms of in-force
policies but has been striving to differentiate themselves from other insurers by concentrating themanagement resources to the individual insurance area to focus on the markets for seniors and others.
The Group has been investing the management resources in the channels with growth potentials andmainly offers third-sector products such as medical care and nursing care/dementia to meet diversifying
customer needs. While having sales representatives as the main sales channel, it has been diversifying
and specializing sales channels by defining channels such as independent insurance agents andtelemarketing as a growth driver. Due partly to such efforts yielding positive outcome, the contract
performance has been steady. Profitability measured by economic value is high and a pace ofimprovement in the balance between risk and capital is fast. The issuer rating on the Company isdetermined to be at the same level as with the Group’s creditworthiness, which JCR views A- equivalent
in light of the evaluation of certain business foundation, high profitability, sound asset quality, reasonable
capital adequacy, etc.
<Rationale for Rating on Loans>
JCR rated the Subordinated Loan at a level two notches below the long-term issuer rating on the
Company.
In rating hybrid securities including subordinated loans, JCR looks at the following points: (i) the
probability of deferral of interest or dividend payments in accordance with the deferral clause is usuallyhigher than the probability of the Company's falling into default (probability of deferral); and (ii) ranking ofclaims at the time of bankruptcy is subordinated to the ranking of ordinary debts, and as a result, theprobability of recovery is lowered (subordination property).
Ranking of claims to the Subordinated Loan at the time of the Company's bankruptcy is subordinatedto all debts (excluding the Subordinated Loan, subordinated debts ranking pari passu with the
Subordinated Loan, debt obligations related to the foundation fund, etc.). Furthermore, with respect tothe interest payments, mandatory and optional interest suspension clauses are stipulated, and withrespect to the principal, it is stipulated that the principal payment shall be deferred if certain requirements(repayment requirements) are not satisfied. JCR views that the probability of the actual suspension of theinterest payments and that of deferral of principal payment are low at the moment, taking into account,among others, the Company's financial conditions. JCR decided the notching from the long-term issuer
rating in light of such subordination property and the deferral clause.
<Assessment of Equity Content of Loans and Rationale>
JCR determined the equity content of the Subordinated Loan to be at “medium” or “50” (against 100 of astock).
JCR takes into account that "there is no obligation to redeem principal or no maturity," "there is no
obligation to pay dividends" and "the ranking of claims at the time of bankruptcy is subordinated" whenassessing the equity content of hybrid securities.
While the Subordinated Loan is a perpetual subordinated loan with no maturity. On the other hand,
early repayment is possible after a lapse of 5 years from the loan execution. In addition, early repayment
upon occurrence of Regulation Events, Tax Events or Rating Events owing to changes in the assessmentof equity content by a credit rating agency is also possible. Moreover, as the interest rate will step up by
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100 bps after a lapse of 5 years from the loan execution, the incentives for early repayment are high. As
conditions for early repayment, however, the Company is required to maintain a satisfactory regulatory
capital ratio or raise capital in the amount exceeding the repayment amount and to obtain prior approval
from the competent authority (only when such approval is necessary). It also has strong incentives tomaintain and strengthen its financial base as a group from the perspectives of the nature of its operations
and remaining competitive. JCR therefore considers it is extremely unlikely that the Company will makean early repayment that will impair the financial bases of both the Company and the Group, andincorporated this view into the assessment of the effective repayment obligation and maturity. This
judgment reflects, along with other factors, that (i) JCR, based on a hearing from the Company, was able
to ascertain the Company's future financial management policy including the position of the Subordinated
Loan; and (ii) the Company has long been winning the confidence of investors and creditors bymaintaining good relations with them in the financial market.
As for the interest, despite the provision of a mandatory interest suspension clause, conditions for
activation of this clause are far from the ones that can surely stop the interest payments prior tobankruptcy. However, the optional interest suspension clause provides a mechanism whereby the interest
payments can be suspended in a stressful situation in general. JCR, in assessing the equity content, took
into consideration the mechanisms for maturity and interest suspension discussed above, as well as otherfactors including the ranking of claims to the Subordinated Loan at the time of bankruptcy being
subordinated to the senior obligations of the Company.
Tomohiro Miyao, Kota Matsuzawa for Issuer
Kiichi Sugiura, Yasuhiro Shimoda for Hybrid Securities

RatingIssuer: Asahi Mutual Life Insurance Company<Assignment>
Issue
Amount (bn)Perpetual subordinated loan
JPY 34

Execution Date

Repayment Date

Interest Rate

RatingMar. 29, 2024

No Maturity(Note)

BBB(Note): Base rate + initial spread for the interest periods beginning on any date from the Execution Dateto but excluding the interest payment date in March 2029. Base rate + initial spread + 1.00%
step-up interest rate for the interest periods beginning on any date after the interest payment
date in March 2029 (inclusive).
Early Redemption/Purchase:

Early repayment after a lapse of 5 years from the loan execution
Early repayment upon occurrence of Regulation Events, Tax Eventsor Rating Events

Replacement:

No representation of intention of replacement in the loan agreement,
etc. For early repayment, the Company must satisfy requirements for
repayment including maintenance of solvency margin ratio.

Optional Interest Suspension:

The Company may suspend interest payments at its discretion.

Mandatory Interest Suspension:

In cases where there is shortage of regulatory capital or prompt
corrective action by authority

Accumulation/Non-Accumulation:

Accumulation

Ranking of Claims:

The Subordinated Loan subordinated to all debts (excluding theSubordinated Loan, subordinated debts ranking pari passu with the
Subordinated Loan, debt obligations related to the foundation fund,etc.).

<Reference>Long-term Issuer Rating: A-

Outlook: Stable

Rating Assignment Date: January 31, 2024
The assumptions for the credit ratings and the definitions of the rating symbols are published as "Types of Credit Ratings and Definitionsof Rating Symbols" (January 6, 2014) in Information about JCR Ratings on JCR's website (https://www.jcr.co.jp/en/).
Outline of the rating methodology is shown as "JCR's Rating Methodology" (November 7, 2014), "Life Insurance" (July 1, 2013),"Ratings of Hybrid Securities" (September 10, 2012), and "Rating Methodology for Financial Institutions' Capital, TLAC
Instruments" (April 27, 2017) and "Rating Methodology for Assessment of Hybrid Securities' Equity Content" (December 1,2022) in Information about JCR Ratings on JCR's website (https://www.jcr.co.jp/en/).
The rating stakeholder participated in the rating process of the aforementioned credit ratings.

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Japan Credit Rating Agency, Ltd.
Jiji Press Building, 5-15-8 Ginza, Chuo-ku, Tokyo 104-0061, Japan
Tel. +81 3 3544 7013, Fax. +81 3 3544 7026
Information herein has been obtained by JCR from the issuers and other sources believed to be accurate and reliable. However, because of the possibility of human or mechanical error as well as other factors,
JCR makes no representation or warranty, express or implied, as to accuracy, results, adequacy, timeliness, completeness or merchantability, or fitness for any particular purpose, with respect to any suchinformation, and is not responsible for any errors or omissions, or for results obtained from the use of such information. Under no circumstances will JCR be liable for any special, indirect, incidental orconsequential damages of any kind caused by the use of any such information, including but not limited to, lost opportunity or lost money, whether in contract, tort, strict liability or otherwise, and whether
such damages are foreseeable or unforeseeable. JCR's ratings and credit assessments are statements of JCR's current and comprehensive opinion regarding redemption possibility, etc. of financial obligations
assumed by the issuers or financial products, and not statements of opinion regarding any risk other than credit risk, such as market liquidity risk or price fluctuation risk. JCR's ratings and credit assessments
are statements of opinion, and not statements of fact as to credit risk decisions or recommendations regarding decisions to purchase, sell or hold any securities such as individual bonds or commercial paper.
The ratings and credit assessments may be changed, suspended or withdrawn as a result of changes in or unavailability of information as well as other factors. JCR receives a rating fee paid by issuers for
conducting rating services in principle. JCR retains all rights pertaining to this document, including JCR's rating data. Any reproduction, adaptation, alteration, etc. of this document, including such rating
data, is prohibited, whether or not wholly or partly, without prior consent of JCR.
JCR is registered as a "Nationally Recognized Statistical Rating Organization" with the U.S. Securities and Exchange Commission with respect to the following four classes. (1) Financial institutions, brokers
and dealers, (2) Insurance Companies, (3) Corporate Issuers, (4) Issuers of government securities, municipal securities and foreign government securities.
JCR publishes its press releases regarding the rating actions both in Japanese and in English on the same day. In case that it takes time to translate rating rationale, JCR may publicize the summary version,
which will be replaced by the full translated version within three business days. (Regarding Structured Finance products, JCR only publicize the summary version in English.)

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I n f o r m at i o n D i s c l o s u r e F o r mJapan Credit Rating Agency, Ltd.

Disclosure Required by Paragraph (a)(1)(ii) of Rule 17g-7

1

Issuer:Asahi Mutual Life Insurance Company

Rating Publication
Date:

January 31, 2024

The Symbol, Number, or Score in the Rating Scale used to Denote Credit Rating Categories andNotches and, the Identity of the Obligor or the Identity and a Description of the Security or Money
Market Instrument as Required by Paragraph (a)(1)(ii)(A) of Rule 17g-7
Please see the news release. If the credit rating is a private rating, please see the report for private
rating.

2

The version of the procedure or methodology used to determine the credit rating; as Required by
Paragraph (a)(1)(ii)(B) of Rule 17g-7
Please see the news release. If the credit rating is a private rating, please see the report for private
rating.

3

The Main Assumptions and Principles used in Constructing the Procedures and Methodologies used
to Determine the Credit Rating as Required by Paragraph (a)(1)(ii)(C) of Rule 17g-7
The credit rating methodology assumes, in principle, to be applied to assess the likelihood of a given
debt payment in light of its issuer’s condition and business environment, etc. in the relevant future.
There is certain limitation, however, in the time horizon that the rating foresees.
The credit rating methodology assumes, in principle, that the factors posted in the below areparticularly important for such likelihood to be determined, and that the rating determination is madeby evaluating each of them not only quantitatively but also employing qualitative analyses.

A) Business Bases
The likelihood of a given debt payment is highly conditional to its issuer’s business bases - how they
can be maintained/ expanded into the future and thereby secure earnings and cash flows in adequacy
and in a sustainable way.
B) Financial Grounds and Asset Quality
The likelihood of debt payment is highly dependent on the degree of the issuer’s indebtedness and loss
absorption capacity in terms of equity capital. Also notable is that a financial institution might see asignificant loss of financial grounds as a result of changes in value of the assets under its possession.
C) Liquidity Positions
The likelihood of debt payment is highly dependent on the adequacy of the issuer’s cash and othersources of repayment (liquidity positions).

1/5D) Related Parties’ Status and Stance of Support/ Assistance for the Issuer
The likelihood of debt payment is affected one way or the other by the issuer’s related parties such as
parent company, subsidiary, guarantor, and the government of the issuer’s business domicile, etc. - bytheir own conditions and/ or position of support/ assistance for the issuer.
E) Order of Seniority in Debt Payment
The likelihood of debt payment can be different between given debts of the same issuer. The likelihoodof debt payment for an individual debt is dependent on the issuer’s discretion, and/ or its rank relative
to other debts of the same issuer in the order of seniority in principal/ interest payment which isdetermined by design as financial product or by laws, etc.

4

The Potential Limitations of the Credit Rating as Required by Paragraph (a)(1)(ii)(D) of Rule 17g-7
The credit rating herewith presented by JCR is its summary opinion with regard to the likelihood ofgiven debt payment and hence not necessarily a perfect representation of such likelihood. The credit
rating is not intended to estimate the probability of default or the loss on given default, either.
The objective of the credit rating herewith presented does not include any concerns other than thelikelihood of debt payment, such as risks of price changes, market liquidity, etc.
The credit rating herewith presented is necessary to be reviewed along with possible changes of theissuer of rated objects in its business performance and/ or circumstances which include regulatoryenvironment, and hence subject to possible alteration.

5

Information on the Uncertainty of the Credit Rating as Required by Paragraph (a)(1)(ii)(E) of Rule
17g-7
The information used for the determination of credit rating as herewith presented is obtained by JCR
from the issuer of rated objects and other sources that JCR trusts in terms of accuracy and reliability
but possibly contains errors due to human, non-human or other causes. Consequently, the credit rating
determined on the grounds of such information does not constitute, explicitly or implicitly, any
representation or warrant of JCR on the information itself or any consequences of its use in terms ofaccuracy, relevance, timeliness, wholeness, market value, or usefulness for any specific purposes.

6

Use of Due Diligence Services of a Third Party in Taking the Rating Action as Required by Paragraph(a)(1)(ii)(F) of Rule 17g-7
There is no use of any third-party due diligence service in the determination of the credit ratingherewith presented.

7

Use of Servicer or Remittance Reports to Conduct Surveillance of the Credit Rating Required by
Paragraph (a)(1)(ii)(G) of Rule 17g-7
There is no use of any servicer or remittance report to conduct surveillance of the credit rating herewithpresented.

8

The Types of Data Relied Upon for the Purpose of Determining the Credit Rating as Required by
Paragraph (a)(1)(ii)(H) of Rule17g-7

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The information posted in the below, which includes data, is used for the determination of the credit
rating herewith presented.
A) Audited financial statements presented by the rating stakeholders
B) Explanations of business performance, management plans, etc. presented by the rating stakeholders
C) Documentation of the rated financial product presented by the rating stakeholders

9Overall assessment of the Quality of Information Available and Considered in Determining theCredit Rating as Required by Paragraph (a)(1)(ii)(l) of Rule 17g-7
JCR holds its basic policies for securing the quality of information as a base of due diligence for thedetermination of credit ratings. The information used as a base for the determination of credit ratingherewith presented satisfies such policies, which include the audit by an independent auditor, thewarranty made by the issuer, the publication by the issuer, some independent media or, otherwise, JCR
analyst’s scrutiny, etc.
JCR sees no particular weakness in the quality of information used for the determination of the credit
rating herewith presented as compared to the information used in other cases of the credit rating forcomparable issuers or ratable objects.
If the credit rating is an Indication, please see the report for Indication.

10 Information Relating to Conflicts of Interest as Required by Paragraph (a)(1)(ii)(J) of Rule 17g-7
JCR receives payment of compensation for the determination of the credit rating herewith presented
from either one of those parties who are issuer, underwriter, depositor or sponsor.
JCR received in the last fiscal year in the past payment of compensation from the same party for any
kind of JCR’s service other than the determination of public or private credit rating, such as one in the
ancillary business.

or Measure of the Potential Volatility of the Credit Rating as Required by Paragraph
11 Explanation(a)(1)(ii)(K) of Rule 17g-7
A) Business Bases
The credit rating is subject to alteration if there is improvement or deterioration of the issuer’s businessbases, since its revenue, etc. may improve or deteriorate by the change in its business management
policies, clients’ preferences, competitive situation, or a technological innovation. The resultant
alteration of the credit rating is usually by a notch, with possibility of a few notches if and when thechange in the business bases is large.
B) Financial Grounds and Asset Quality
The credit rating is subject to alteration if the issuer increases/ decreases its debt/ capital or vice versa
and thereby makes its individual debt payment liability less or more bearable and its loss absorption
capacity into the future decreased or increased. Also, the changes in the quality of asset under theissuer’s holding may affect the credit rating, since such changes could raise or lower the likelihood of
future loss of the issuer’s financial grounds. The resultant alteration of the credit rating is usually by anotch, with possibility of a few notches if and when the change in the financial grounds and/ or asset
quality is large.
C) Liquidity Positions
The credit rating is subject to alteration if there is a change in the issuer’s financial management policy
or in the relations with fund procurement sources and the change thereby makes its liquidity positions

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improve or deteriorate. The resultant alteration of the credit rating is usually by a notch, with possibilityof a few notches if and when the change is large.

D) Related Parties’ Status and Stance of Support/ Assistance for the Issuer
The credit rating is subject to alteration if there is a change in the issuer’s parent company or subsidiary,guarantor or other provider of credit enhancement, or the government of the issuer’s business domicile,or other related parties’ own conditions and/ or position of support/ assistance for the issuer, and thechange thereby makes its business bases, financial grounds and/ or liquidity positions improve or
deteriorate, and/ or making the effectiveness of guarantee and other credit enhancement improve or
deteriorate. The resultant alteration of the credit rating is usually a notch, with possibility of a few
notches if and when the change is large.
E) Order of Seniority in Debt Payment and Non-Payment Forgiven by Contract
The credit rating is subject to alteration if there is a change in the rated debt’s status in the order ofseniority relative to other debts caused by the improvement/ deterioration of the issuer’s financial
condition. The resultant alteration of the credit rating is usually a notch, with possibility of a few
notches if and when the change is large. Also, in case of the financial products for which non-payment
of interest/ principal is contractually permissible, the credit rating is subject to alteration if and when
the likelihood of such non-payment is projected to increase or decrease. The resultant alteration of thecredit rating could be by a notch but often as much as a few notches.
F) Rise and Fall in General Economy and Markets
The credit rating is subject to alteration if there is a rise/ fall in the general economy and/ or the markets
inducing the issuer’s revenues/ expenses to increase/ decrease and vice versa, etc. The resultant
alteration of the credit rating is usually by a notch, with possibility of a few notches if and when thechange is exceptionally large.
G) Various Events
The credit rating is subject to alteration on occurrence of various events, such as change in the issuer’s
major shareholders, M&A and other organizational change, accident, violation of the law, litigation,legal/ regulatory change, natural disaster, etc., which are unforeseeable at the time when the credit
rating is determined, causing a significant change on the issuer’s business bases, financial grounds, etc.
The resultant alteration of the credit rating could be by a notch but more often than not as much as afew notches.

12

Information on the Content of the Credit Rating, Including the Historical Performance of the Credit
Rating and the Expected Probability of Default and the Expected Loss in the Event of Default as
Required by Paragraph (a)(1)(ii)(L) of Rule 17g-7
The credit rating herewith presented by JCR is its summary opinion with regard to the likelihood ofgiven debt payment and hence not necessarily a perfect representation of such likelihood. The credit
rating is not intended to estimate the probability of default or the loss on given default, either.
Facts of the probability of default are posted as Form NRSRO Exhibit 1 on the JCR website under the
URL:
https://www.jcr.co.jp/en/service/company/regu/nrsro/on the Sensitivity of the Credit Rating to Assumptions Made as Required by Paragraph
13 Information(a)(1)(ii)(M) of Rule 17g-7
A) Business Bases
The credit rating herewith presented could be changed if and when the assumptions made at the time ofits determination turn out to be inaccurate with regard to the issuer’s business bases and powers ofearning or cash flow generation, etc. The resultant change of the credit rating is most likely by a notch,
as JCR speculates, but possibly as much as a few notches if the development is rapid in improvement or
deterioration of the issuer’s business bases on some drastic change in the operational environments, etc.
B) Financial Grounds and Asset Quality
The credit rating herewith presented could be changed if and when the assumptions made at the time ofits determination turn out to be inaccurate with regard to the issuer’s financial grounds and asset

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quality. The resultant change of the credit rating is most likely by a notch, as JCR speculates, but
possibly as much as a few notches if the development is rapid in improvement or deterioration of theissuer’s financial grounds and/ or asset quality on some drastic change in its business bases.

C) Liquidity Risks
The credit rating herewith presented could be changed if and when the assumptions made at the time ofits determination turn out to be inaccurate with regard to the issuer’s liquidity positions. The resultant
change of the credit rating is most likely by a notch, as JCR speculates, but possibly as much as a few
notches if the development is rapid in improvement or deterioration of the issuer’s liquidity positions
on some drastic change in its financial management policy or relations with fund procurement sources,
etc.
D) Related Parties’ Status and Stance of Support/ Assistance for the Issuer
The credit rating herewith presented could be changed if and when the assumptions made at the time ofits determination turn out to be inaccurate with regard to the issuer’s parent company or subsidiaries,
guarantor or other providers of credit enhancement, the government of the issuer’s business domicile orother related parties’ status and stance of support/ assistance for the issuer. The resultant change of thecredit rating is most likely by a notch, as JCR speculates, but possibly as much as a few notches if there
is a major change on the part of related parties, such as replacement, disappearance, some drastic
improvement/ deterioration of financial grounds/ balances, etc.
E) Order of Seniority in Debt Payment and Non-Payment Forgiven by Contract
The credit rating herewith presented could be changed if and when the assumptions made at the time ofits determination turn out to be inaccurate with regard to the order of seniority in repayment of interestsand principal. JCR assumes the resultant change of the credit rating is most likely by a notch. Thechange could be as much as a few notches if the issuer’s financial structure differs so much and thereby
the balance between debts shifted so greatly. Rating change is also possible in case of the financial
products for which non-payment of interest/ principal is contractually permissible, if and when theassumptions made at the time of its determination turns out to be inaccurate. The change of the credit
rating is assumed to be by a notch but often as much as a few notches.
on the Representations, Warranties, and Enforcement Mechanisms of an Asset-backed
14 Information
Security as Required by Paragraph (a)(1)(ii)(N) of rule 17g-7
The credit rating herewith presented is not for an ABS product, and hence no relevant issue.

Japan Credit Rating Agency, Ltd.
Jiji Press Building, 5-15-8 Ginza, Chuo-ku, Tokyo 104-0061, Japan
Tel. +81 3 3544 7013, Fax. +81 3 3544 7026

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