Working toward the T&D
Insurance Group’s Vision
for Society

CHAPTER 03

Try & Discover for
Creation of
Shared Value

Further Advancementof Capital and Risk
Management

Corporate
Governance

T&D Insurance Group’s
Business

Supplementary Materials
and Corporate Data

Competitive Advantage Source — (1)Financial Capital

Further Advancement ofCapital and
Risk Management

The T&D Insurance Group enhances capital efficiency and ensures a solid management base byleveraging its specific financial strategy.

Soundness Indicators (March 31, 2022)

Profitability Indicators (March 31, 2022)
Group Adjusted Profit

ESR

Adjusted ROE

236%

39.2 billion [¥116.0 billion] 2.7% [7.8%]*1*1(Financial Capital, Human Capital, Intellectual Capital, Social and
Relationship Capital, and Natural Capital) and strives to prevent
them from being damaged. By injecting them as sources required
to implement our business activities and strategies, the Group
contributes to the creation of shared value.

Value of New Business¥116.9billion

Solvency Margin Ratio

The T&D Insurance Group aims to boost the five forms of capital
ROEV*2

7.0%*1 Figures in brackets exclude the impact of Taiyo Life’s reinsurance*2 Base excluding temporary valuation gains/losses, etc. related to Fortitude

Return to Shareholders (Fiscal 2021)
Adjusted DOE

3.5%

T&D Holdings (consolidated)

Daido Life

Taiyo Life

T&D Financial Life

1026.3%734.2%

1203.8%749.5%

Total Payout Ratio

183.9%

Towards More Sophisticated Financial Strategy
Business activities
Creation ofshared value

Capital

We are working to further advance ERM andupgrade our capital management.
Message from the head of financeCorporate governance

Hotaka Nagai
Managing Executive Officer

Improving capital efficiency is an important issue for increasing stock
price, and is positioned as the most important theme in the Group LongTerm Vision formulated in fiscal 2021.
As Managing Executive Officer in charge of the Financial Strategy Department, I intend to contribute to the enhancement of corporate value
by promoting the further advancement of ERM and capital management.

T&D Holdings |44| Integrated Report 2022

T&D Holdings |45| Integrated Report 2022

Working toward the T&D
Insurance Group’s Vision
for Society

Capital management cycle
The key to improving capital efficiency, as set forth in theGroup Long-Term Vision, is the implementation of thecapital management cycle as shown below. By allocating
stable profit and capital generated from our core life
insurance business to growth sectors centered on theclosed book business, we plan to enhance capital effi-

ciency through profit expansion in the growth sectors. It
is also important to create a favorable cycle in which weboost shareholder returns with expanded profits as well
as allocate retained earnings to further growth of the life
insurance business and investment in growth sectors.

Group capital
Retained earnings forinvestment in growth
sectors
Shareholder returns(Cash dividends, sharebuybacks)

Try & Discover for
Creation of
Shared Value

Further Advancementof Capital and Risk
Management

Corporate
GovernanceIn addition, the investment yield should be evaluatedon the basis of the overall yield, which takes into accountnot only realized gains and losses but also unrealized
gains and losses, and ALM assets should be managed
together with insurance liabilities.
In the previous fiscal year, Taiyo Life’s reinsurance
was recorded as a significant loss in terms of accounting-based profit, but had a positive effect on an economic
value basis.

T&D Insurance Group’s
Business

Supplementary Materials
and Corporate Data

Interest rate level (precondition for EV)
(%)
1.75
1.50

1.00

0.50

0.00

(0.25)
0 years

Allocating the Group’s capital towards high returnon risk businesses centered around growth sectors

5 years

10 years

15 years

20 years

25 years

30 years* Forward rate; after 31 years it converges to the ultimate forward rate (3.8%) in 30 years

Retainedearnings

Maximization of
investment revenue

Distribution
towards externalbodies
Improvementof profit/capitalefficiency

Policy on shareholder returns

Utilizing external funds for capital allocationin growth sectors to improve capital efficiency
Disposing of
non-profitableassetsCapital allocation in growth sectors

Improvement of investment efficiency

Reduction of interest risk andstrategic shareholdings

Expanding shareholder
returns through profit
expansion

Improving capital efficiency of the Groupthrough profit expansion in the growth
sectors (closed book, etc.)

Improvement of profit/capital efficiency

From a medium- to long-term perspective, profit on a financial accounting basis will converge with profit on an economic value basis, and increasing profit on an economic value
basis will lead to higher financial accounting-based profit.
On the other hand, looking at our situation, the level ofprofit on a financial accounting basis remains low compared
to indicators of profit on an economic value basis, such aspolicies can be a factor that drives down profit on an
accounting basis in the first fiscal year of policies. However, from an economic value-based perspective, they area source of future profits, and the stable accumulation of
the value of new business each year will lead to the recording of stable profits in the future.

The Group’s policy performance in its core life insurance
business has been strong amidst the COVID-19 pandemic, with a steady accumulation of policies in force.
By investing the profits generated from our life insurance business in growth sectors, we will strive to increase
Group profits. The Group Long-Term Vision calls forinvestment in growth sectors, including the closed bookbusiness, which is expected to grow at a high rate. In thecurrent fiscal year, the Group made an additional invest-

Distribution of profit of new policies under EV calculation shown
throughout the years

Reduction of cost of capital(¥ billions) Total of 3 life
insurance100

We recognize that reducing the cost of capital is also an
important issue. Based on CAPM, we estimate the current
level of our cost of shareholders’ capital to be around 8%,
and we are working to firstly reduce this level to 7%. In or-

10-year total: approx. ¥96 billion

companies

MCEV increase and value of new business. Recognizing that
this is one of our important issues, the Group Long-Term
Vision sets the Financial KPIs of value of new business on an
economic value basis and ROEV as well as Group adjusted
profit and adjusted ROE on a financial accounting basis,
and implements both economic value-based and financial
accounting-based management.

Improvement of adjusted ROE

Profit improvement on an economic value basis
Along with the pursuit of profit on an accounting basis,the Group is focusing on increasing profits on an economic value basis, with particular emphasis on building
up the value of new business, which is one of our financial
KPIs. Due to the special characteristics of life insurance
accounting, initial costs (provision of policy reserves, salescommissions, etc.) at the time of acquisition of insuranceManagement on both an economic value basis and a financial accounting basis

20-year total:
approx. ¥188 billion

50

ment of ¥64 billion from Taiyo Life and Daido Life capitalin Fortitude Group Holdings, LLC, a US reinsurance company. We will similarly invest capital in new businesses,
such as CVC, to plant the seeds for future expansion ofrevenue sources.
Through these efforts, we will achieve Group adjusted
profit of over ¥130 billion yen, a KPI of the Group LongTerm Vision, and increase adjusted ROE.

der to reduce cost of capital, we will promote the reduction of investment risk based on ALM and the improvement of earnings stability by expanding insurance risk.

0

(50)

(100)
First year

1-5

6-10

11-15

16-20

21-25

26-30

31 years andabove* Initial contract profits are lower than actual accounting-based profits because investment
income is calculated at the risk-free rate
* Compiled on the basis of value of new business for the fiscal year ended March 31, 2022

T&D Holdings |46| Integrated Report 2022

T&D Holdings |47| Integrated Report 2022

Working toward the T&D
Insurance Group’s Vision
for Society

Try & Discover for
Creation of
Shared Value

Further Advancementof Capital and Risk
Management

Corporate
Governance

T&D Insurance Group’s
Business

Supplementary Materials
and Corporate Data

Policy on shareholder returns
Targets for FY2025 (at the time of announcement in May 2021)

May 2022 estimates (FY2022-FY2025)

Business content

We will increase cash dividends steadily and sustainably
under the policy of gradually raising the adjusted DOE
to 4%. Share buybacks will be implemented agilely andstrategically, taking into consideration capital adequacy,
growth investment, stock price levels, and other factors.

Adjusted ROE
0.0%

8.0%

Group consolidation
Household insurance business (Taiyo Life)

From the perspective of improving capital efficiency,
our policy is to return unused capital to shareholders. In
November 2021, we announced a ¥40 billion share buyback, our largest ever. We will continue to return profits toshareholders with an awareness of capital efficiency.

SME insurance business (Daido Life)
Independent insurance agent insurance business(T&D Financial Life)
183.9%

New business investment (TDUC)
58.9%

Asset management business (TDAM)
Pet insurance business (P&F Insurance)

7.0%

8.0%

<Cost of shareholders’ capital>

Total Payout Ratio

40.9%

Share Buyback(¥ billions)

17.0

Reduction of interest rate risk

48.4%

49.3%

17.0

13.0

(Years)30■Asset ■Liability

Interest matching ratio (right axis)

Cash Dividend(¥ billions)

(%)

23.3

20.5

Annual Dividends
Per Share

20

¥32.5
Fiscal 2016

60

15.5

10.0

26.4

25.7

¥37.5
Fiscal 2017

¥42.0
Fiscal 2018

¥44.0

¥46.0

Fiscal 2019

Fiscal 2020

54.6

10

34.8

27.4
¥56.0

80

25.6

13.0

40.0

32.1

Daido Life’s asset/liability duration and interest matching ratio

To further enhance ALM, we intend to reduce interest
rate risk. Specifically, Daido Life plans to raise its interest
matching ratio to 60-70% by the end of March 2026, andto continue to reduce interest rate risk thereafter (Taiyo
Life already has an interest matching ratio of around 70%).
When the domestic interest rate level begins to rise, wewill consider bringing forward the increase in the interest
matching ratio or raising the target ratio.
While enhancing ALM, we make effective use of surplus capital and diversify investments in foreign currency
denominated assets, equities, and the like to improve theexpected return of the overall portfolio.

48.0%

Fiscal 2021

¥62.0

Fiscal 2022
(forecast)

40

0Cash dividend

Share buyback

Adjusted DOE
Adjusted DOE to be raised
gradually to approximately 4%

Core ESR, etc.*

20

FY2016FY2017FY2018FY2019FY2020

FY2021*1 Only yen-interest assets are applicable. UFR has been applied from the end of March 2019.
*2 Interest matching ratio is a monitoring indicator used within the Group to manage how asset/
liability duration matches considering the amount.
Interest matching ratio = (Asset duration × Asset present value) ÷ (Liability duration × Liability
present value)

Total return to beat least 40% of theGroup’s adjusted profit in the medium term

[Total cash dividend / shareholders’ capital]* Surplus that is non-applicable of UFR,
exempt of subordinated debt / Economic
value based risk amount

Stable and sustainable increase

Agile and strategic implementation

Reduction of strategic shareholdings
Changes in strategic shareholdings (listed) (market value basis)

Our strategic shareholdings policy is to reduce policy
stockholdings to 20% of net assets as soon as possible
after examining the purpose and effectiveness of eachindividual stock holding, and to further reduce them
thereafter.

Ratio of net assets to total assets remained
unchanged due to decrease in net assets

32%

Status of Core ESR

Relationship between core ESR and shareholder returns, etc.
210%

205%

198%

• Sustainable increase of cash dividends• Further consideration of share buyback

Neutral level
185%

33%
Reduce ratio to net assets to around 20%
as soon as possible (market value basis)

225%

Surplus that is non-applicable of UFR, exempt ofsubordinated debt

Further reduction• Sustainable increase of cash dividends• Consideration of share buyback

3,108.1

3,073.3

2,882.7

Target ratio of 20%(market value basis)EC

1,456.1

Neutral level185%

1,480.2

1,496.1• Sustainable increase of cash dividends(¥ billions)

FY2020

FY2021

FY2022

FY2023■ Balance of holdings (combined for Taiyo and Daido, market value)

FY2024FY2025

FY2020Fiscal year ended
December 2021

FY2021

153%

Ratio to net assets (market value basis)

T&D Holdings |48| Integrated Report 2022

T&D Holdings |49| Integrated Report 2022

Working toward the T&D
Insurance Group’s Vision
for Society

Fiscal 2022 shareholder returns

Further Advancementof Capital and Risk
Management

Corporate
Governanceearnings of TDUC is ¥44.4 billion. This ¥44.4 billion will beallocated to growth investment, retained earnings, andshareholder returns.

Capital allocations (breakdown)(¥ billions)Fiscal 2022 Groupadjusted profit

106.0
34.8

44.4

Cash dividend

Growth investment*1
Retained earnings*2
Shareholder returns

12.8

14.0

Additional investment in
Fortitude (installments
over 5 years)

Retained earnings for
TDUC growthinvestment, etc.

*1 Growth investments are assumed to be for building a digital customer platform and CVC initiatives, as described on page 38.
*2 T he need for retained earnings is determined by taking into account the capital sufficiency status based on a review of core ESR, the performance of thecore companies, and the financial and economic environment.

In order to conduct ERM on a Groupwide basis, theGroup has established the Group ERM Committee as asubordinate body under the direct control of the Boardof Directors.
In addition, from the perspective of further evolving
the management cycle cultivated through ERM, steadily
implementing group capital management, and buildinga system to calculate and manage EV with consistency,
some operations of the Group Finance & Accounting
Department were transferred to the Group ERM Strategy
Department and reorganized into the Financial Strategy
Department.

Supplementary Materials
and Corporate Data

Board of Directors

Integrated management of capital efficiency and capital adequacyGroup ERM Committee
Board
of Directors
T&D Holdings
T&D Holdings
Secretariat
Risk Management
Accounting
T&D Holdings
Department
department
Financial Strategy
Integrated management ofDepartment
capital efficiency and capital adequacy
Soundness(Capital adequacy)

Dividends are paid out to the holding company by its
subsidiaries after they retain the necessary amountof earnings in terms of their soundness. However, theholding company has no function of fund management;
therefore, capital that has no clarified use at the holding
company is reserved at the Group subsidiaries in view ofasset management efficiency. It is planned to pay out tothe holding company once its purpose is fixed, such as
growth investment and shareholder returns. Going forward, we will continue to optimize the ratio of remittancefrom the Group subsidiaries to the holding company inview of making effective use of the Group capital.

ERM (Enterprise Risk Management)
Enterprise risk management (ERM) is a strategic management method used to achieve managerial goals such as
raising corporate value and maximizing earnings, throughthe integrated management of capital, profit and risk. It
quantifies capital, profit, and risk on an economic value
basis to make them “visible,” and by integrally managing
them and making management decisions, it enables us topursue profit by controlling soundness through a comparison between capital levels and risks.

Increasing
Corporate
Value

In t

egr

ate d M an a g

em

en

t

Capital

Risk

Proﬁt

Expanding return on risk

ReturnGroup-wide

Insurance

CapitalFormulating
management plan

Integrated
Management

ACTION

Reviewing
management plan

Risk

Risk

At least 8.0% in themedium- to long-term

ROEV

At least 7.5% in themedium- to long-term

ProfitProfitProfitability(Capital efficiency)

CHECK
Monitoring
progress

CHECK
Monitoring
progress

At least 5.0% in themedium- to long-term

Improving return on risk

* ESR = Surplus (capital) ÷ EC (risk)* Core ESR = Surplus exempt of subordinated debt, and unrealized gains and losses on debts due tothe application of UFR (capital) ÷ EC (risk)* Adjusted ROE = Group adjusted profit / Average net asset balance* ROEV = Amount of EV increase (excluding increases or decreases in capital, etc.) ÷ Average EV
balance (Group basis)* Core ROEV = (Value of new business + Expected earnings on the risk free rate) ÷ Average EV balance(Total of three life insurance companies)

Investment
Interest rate

Risk amount| Integrated Report 2022

DO

Implementing
planned initiatives

Neutral level: Around 185%
Appropriate range:
153-225%

Reduction of risk

50

CapitalProfitability(Capital efficiency)

Integrated
Management

Reviewing
management plan

At least 133%

Adjusted ROECore ROEV

Expansion ofrisk taking

Business
investment

Profitability

Soundness(Capital adequacy)

Soundness(Capital adequacy)

DO

Implementing
planned initiatives

ACTION

Required level of ESR

Direction toward fiscal 2025

Expandingrisk taking

Core life insurancecompanies
actuarial andaccounting
departments

PLAN

Group Risk Appetite

Enlarging return on risk
Improving capitalefficiency

ERM Committees of corelife insurance companies
Secretariat
Planning departments ofcore life insurance companies

Formulating
management planCore ESRTo improve capital efficiency, we monitor return on
risk (ROR) by risk category and reflect the results in our
risk-taking policies and other measures. The chart plots
risk amount on the horizontal axis and return on the vertical axis for each category, and shows our direction towardfiscal 2025. While expanding categories with high ROR,
such as insurance underwriting and business investments,
we will promote risk reduction in categories with low ROR,
such as interest rate risk and strategic shareholdings,
in order to improve capital efficiency by expanding theGroup’s overall return to risk ratio.

T&D Holdings
Accounting
department
Core life insurancecompanies
actuarial andaccounting
Profitability
departments(Capital efficiency)

PLAN

Under ERM, the process of realizing the growth of corporate value is the PDCA cycle. It leads the management
toward achieving goals, while repeating the cycle of Plan
(formulating the management plan), Do (implementing
planned initiatives), Check (monitoring progress), andAction (reviewing the management plan).
The Group evaluates capital, profit, and risk on an economic value basis and sets standards for soundness andprofitability as the Group risk appetite. Then, it promotes
the advancement of ERM through the above PDCA cycle
in order to meet the Group risk appetite.

Profitability(Capital efficiency)

Secretariat
T&D Holdings
Financial Strategy
ERM Committees
of coreDepartment
life insurancecompanies
Secretariat
Planning departments of(Capital adequacy) core life insurance companies

Core life insurancecompanies
risk management
departments

PDCA Cycle

Soundness

Group ERM Committee

T&D Holdings
Risk Management
Department
Core life insurancecompanies
risk management
departments Soundness

Dividends from subsidiaries

T&D Holdings |T&D Insurance Group’s
Business

Organizational Systems

The allocation schedule for the forecast of ¥106.0 billionof Group adjusted profit for the current fiscal year isshown in the figure. The amount excluding cash dividends, additional investment in Fortitude, and retained

Capital allocations

Try & Discover for
Creation of
Shared Value

T&D Holdings |51| Integrated Report 2022

Working toward the T&D
Insurance Group’s Vision
for Society

Human Capital

Number of T&D Insurance Group employees (March 31, 2022)

Employee satisfaction* (fiscal 2021)

19,645

T&D Holdings: 4.11
Taiyo Life: 3.60
Daido Life: 3.88
T&D Financial Life: 3.67

Ratio/number of female managers* (April 2022)

19.3% 456

* Five rated evaluation* Total number of Taiyo Life, Daido Life and T&D Financial Life

Ratio/number of employees with disabilities* (March 31, 2022)

2.54% 376

Number of in-house sales representatives (March 31, 2022)

8,534

Corporate
Governance

T&D Insurance Group’s
Business

Supplementary Materials
and Corporate Data

Planned human resource rotation

The T&D Insurance Group considers human resources that work together to be the most important and greatest driving force
for its business activities to realize the Group’s corporate philosophy and aims to provide workplace environments that enable
all people to participate actively.

Taiyo Life:

Further Advancementof Capital and Risk
Management

Developing and leveraging human resources

Competitive Advantage Source — (2)Total:

Try & Discover for
Creation of
Shared Value* Total number of Taiyo Life, Daido Life and T&D Financial Life

Daido Life:

3,699

Number of employees taking childcare leave* (fiscal 2021)

Female:381 Male: 82* Total number of Taiyo Life, Daido Life and T&D Financial Life

Toward Developing and Leveraging
Human Resources that can Create Shared Value
Enhancing corporate value andcreating shared value

Financial value

Social value

Further advancement of human capital

Developing andleveraging humanresources

Creating in-houseenvironments thatare comfortable towork in

Basic Group Policy on Human Resources

Please refer to the website below for the Basic Group Policy on Human Resources.

https://www.td-holdings.co.jp/en/csr/csr-policy/human-resources.html

rately for each type of business experience and division.
• To develop human resources to handle the managementof the T&D Insurance Group—which includes various
companies—and expand the population of such humanresources, we promote job mobility within the Group,
including the transfer of employees from each Group
company to T&D Holdings as well as the exchange ofhuman resources within the Group.
Job mobility within the Group(transfersand human resource exchange)

Taiyo Life

Pet & Family

T&D
Financial Life

T&D United
CapitalThe T&D Insurance Group strives to develop autonomous
human resources that possess a high degree of integrity(honesty, sincerity, and high principles), are flexible enoughto accept changes in society and diverse values, possess
a global perspective, sincerely pursue initiatives related totheir business based on an understanding of the Group’s
future course, think for themselves, take active steps, andcan therefore achieve the results expected of them.
• The T&D Insurance Group provides education andtraining based on the following pillars: OJT (on-the-job
training), group training, personal development support, and reskilling/relearning. In addition, we support
the self-directed career development of each of ouremployees, including active support to help employees
acquire qualifications as well as in-house recruitment
and support for employees who want to take on thechallenge of studying languages abroad.
Our goal

To develop autonomous human resources capable of thinking for themselves,
taking active steps, and achieving the results expected of them

In-house recruitment(in-house recruitment related to desired duties, MBAs, and Group-external staff assignment)
Development of global human resources(overseas company internships, opportunities to study languages abroad, etc.)
Personal development
supportReskilling
Relearning

OJT

52

| Integrated Report 2022

Group training

Initiatives to achieve the active participation of diverse human resources
By accepting the diversity of human resources and fostering a sense of inclusion, the T&D Insurance Group builds a corporate culture of mutual trust, gratitude, and respect between employees with the aim of enabling employees to experience asense of pride and responsibility as members of the Group.
Promotion of the active participation of women
The T&D Insurance Group knows that the ability of women to further demonstrate their capabilities is essential for sustainably increasing the Group’s corporate value, and we therefore recognize the active participation of women as a key management issue. Based on this awareness, our three life insurance companies pursue
initiatives aimed at the planned development and promotion of human resources to
Ratio of female
managers of our threemanagers while also revising their personnel and compensation systems and introduc- life insurance companies
ing various support systems, including childcare and nursing care.

19.3%

T&D Holdings |T&D Asset
Management

T&D Holdings

Daido Life

Action to provide growth opportunities

Toward Further Advancement of Human CapitalWith the formulation of our Group Long-Term Vision (Try& Discover 2025) as a start, we have amended our BasicGroup Policy on Human Resources to clearly demonstrate
again our universal idea not influenced by environmental changes and what we aim to be in terms of humanresources. The Group positions human resources as themost important and greatest driving force for its businessactivities to realize the Group’s corporate philosophy: withour ‘Try & Discover’ motto for creating value, we aim to
be a group that contributes to all people and societies.
We have also established the basic policies for our humanresources management.
In addition, one of our sustainability priority themes is“to provide workplace environments that enable all people to participate actively.” The Group will continue these
efforts based on the belief that the growth and increased
satisfaction level of employees will lead to the enhancement of corporate value and creation of shared value.

In order to help enable each employee to fully demonstrate
their unique capabilities, the T&D Insurance Group assigns
suitable human resources based on each employee’s careermindedness, capabilities, and appropriateness in responseto the human resource assignment needs for achieving
the business strategies of the Group itself and each Group
company. In addition, based on the medium- to long-term
perspective, we also rotate human resources in order to develop suitable future leader candidates who will ultimately
help to drive the growth of each T&D Group company.
• We strive to help our young employees acquire basic
knowledge and improve their skills by transferring thembetween our head office and branches during a certain
period after they start working for us and also switching
their work between sales and administration. We also
strive to improve the management capabilities of ourmanagers by appointing branch managers who have experience working as head office managers, by transferring
branch managers to the head office, and by taking similaractions. In addition, we develop personnel equippedwith specialized knowledge by assigning them to highly
specialized departments based on their career goals andbasing their training on development plans created sepa-

T&D Holdings |53| Integrated Report 2022

Working toward the T&D
Insurance Group’s Vision
for Society

Employment ratio of
persons with disabilitiesof our three life
insurance companies

Employment of persons with disabilities
To create a workplace that is comfortable for employees with disabilities to
2.54%
work in, we are striving to develop suitable workplace environments and expand employment opportunities for diverse persons with disabilities.
Active participation of older workers
Due to the extension of the healthy life expectancy as well as lifestyle diversification, Taiyo Life and Daido Life have introduced a mandatory retirement age of 65. Each of our three life insurance companies has also introduced a re-hiring system forpeople of retirement age. In addition, from the standpoint of promoting work-style reform, the Group is working to promote
the empowerment of older workers, and we are introducing various systems adapted to each company’s circumstances.

Try & Discover for
Creation of
Shared Value

Further Advancementof Capital and Risk
Management

Corporate
Governance

Employee satisfaction survey
Our human resources are one of the most important driving
forces enabling the stable and sustainable growth of T&D
Insurance Group companies, and we therefore consider improving both the satisfaction and motivation of our employees to be essential for achieving our various measures.
In order to encourage the self-motivated independentaction of employees by ensuring job satisfaction for them,
we conduct a survey that is focused on employee satisfaction—one of our non-financial KPIs—and covers the

Results of the employee satisfaction survey for each Group company(fiscal 2021)

The mental and physical health of employees and their families is the foundation on which we strive to achieve the T&D
Insurance Group’s Corporate Philosophy and continuously pursue growth, so we aim to build an environment that enables our employees to vigorously work without worry.

organized by the Ministry of Economy, Trade and Industry(METI) for companies that practice health and productivity
management for employee health promotion.

T&D Insurance Group initiatives• No in-house smoking• Reduction of working hours• Remote work promotion• Promotion of the acquisition of “mental healthmanagement” certification (for managers)• Stress check system• Establishment of a clinic at the head office• Comprehensive implementation of regular medical checkups• Assistance with the examination fees for health screening
Etc.

Group life insurance company initiatives

T&D Financial Life Health Declaration
Taiyo’s GENKI Project• Kurort Health Walking• Dementia risk assessment (MCI screening)• Cancer screening assistance Etc.

DAIDO-Koko Kara
• Walking promotional campaign• Establishment of second opinion and cancer consultation desks• Lectures that cover health topics Etc.

T&D Holdings

4.11

Taiyo Life

3.60

Daido Life

3.88

T&D Financial Life

3.67

Pet & Family

3.98

T&D Asset Management

3.55* Each question has five options (with a maximum score of 5.0 to a minimum of 1.0)

Initiatives aimed at health and productivity management as well as supporting the raising of thenext generation

Group-wide
initiatives

Supplementary Materials
and Corporate Data

employees of our directly owned subsidiaries, including
the three life insurance companies.

Creating an in-house environment that is comfortable to work in

Health and productivity management
Taiyo Life, Daido Life, and T&D Financial Life have been
approved as Certified Health and Productivity Management Outstanding Organizations (White 500) (with Taiyo
Life and Daido Life in particular earning this certification
for six consecutive years) under a certification system

T&D Insurance Group’s
Business• Implementation of no overtime and go-home-early days
• Establishment of mental and physical health consultation desks• Assistance to help cover the costs of in-house club activities(sports) Etc.

Risk Management of Human Resources
Preventing bribery and corruption
The T&D Insurance Group states the following in the T&D
Insurance Group Compliance Code of Conduct: “Weshall work to prevent corruption in our relationships withbusiness counterparts, civil servants, and other parties byrefraining from providing or receiving any business entertainment within reasonable bounds under normal social
conventions as well as refraining from giving or receiving
gifts in connection with our business activities worldwide.”
In addition to preventing bribery, we ensure thoroughawareness by all executives and employees to help prevent
corruption. This includes measures against money laundering and preventing the misappropriation and diversionof funds by using such means as a compliance programand compliance manuals. Bribery and corruption are also
stipulated as extremely malicious and severely impacting
criminal statutes subject to disciplinary action. All scandals(and concerns over possible scandals), including bribery
and corruption, are reported to the Board of Directors.
In addition, for a new business investment, checks fromthe perspective of preventing bribery and corruption areadded to the risk assessment and subjected to an appropriate review.
As of fiscal 2021, no scandals or legal disputes related
to bribery or corruption have occurred.
Excerpt from the T&D Holdings Compliance Manual
Risks Related to Bribery and Corruption
In today’s world, bribery and corruption impede the development andeconomic growth of the country or region in which they occur. Bribery
and corruption not only have an undue negative impact on poor
regions, but they also give rise to serious legal and reputational risks forcompanies. Many of the acts that involve corruption, such as bribery, are
not only illegal in the place where a company performs them, but there
is an increasing number of cases where these acts are also illegal by thelaws of the home country of the company. As regards reputational risks,even if a company is judged to not be involved with corruption by the
final judgment of the court concerned, there are many cases in which the
reputation of the company has been damaged merely because it wassuspected of corruption. A company must also pay attention to the factthat they not only take responsibility for their own actions but also forthe actions of any agents that are conducting business on their behalf inother countries.

Internal reporting system

Supporting the raising of the next generation
In response to the enforcement of the Act on Advancement of Measures to Support Raising Next-Generation
Children in April of 2005, the T&D Insurance Group formulated a unified action plan and is striving to promote
the expansion of childcare support systems for employees
as well as work-life balance.
Each T&D Insurance Group company also actively
supports the participation of men in childcare, and—as

a Group that supports childcare, including 100% of male
employees taking childcare leave—we have obtained
Platinum Kurumin certification.
チ
プ ラ ナくるみチ
プ ラ ナくるみサポー

ト して い

ま

す

ん

す

サ

て

ま

子育

ト して い

て
子育

ポー

み

ん

ん

て
子育

サ

チナく
プラ
る

ポー

ト して いますT&D INFORMATION SYSTEM

Initiatives to apply employee feedback
The T&D Insurance Group promotes the creation of an open corporate culture in which every employee is satisfied with
their job, motivated to achieve personal growth in order to contribute to the Group’s growth, and able to fully demonstrate their abilities.
T&D Holdings |54| Integrated Report 2022

At the T&D Insurance Group, each of the Group’s threelife insurance companies and other Group members used
to establish and operate their own internal reporting systems. In April of 2005, however, the T&D Insurance Group
Helpline was established for use by all executives and em-

ployees in the Group. The T&D Insurance Group Helpline
accepts, through an external reporting company, reportsof compliance issues, violations of internal rules (including
suspected violations), and actions that may damage thecredibility or reputation of the Group.

T&D Insurance Group Helpline
The T&D Insurance Group Helpline has rules in place thatprohibit any disadvantageous treatment of whistleblowers who use the helpline. We strive to build an effective
system for internal reporting by enabling whistleblowers
to make reports by phone or online through an externalreporting company and make reports anonymously. The
reports and the results of the investigations into them are

T&D Holdings |then reported to the Audit and Supervisory Board and to
management.
Number of Calls Received by the T&D Insurance Group Helpline
FY2019258

FY2020320

FY2021309* The number of reports above includes inquiries about the system as well as reports of workplaceissues that are difficult to consult superiors over, such as complaints or dissatisfaction.

55| Integrated Report 2022

Working toward the T&D
Insurance Group’s Vision
for Society

Try & Discover for
Creation of
Shared Value

Further Advancementof Capital and Risk
Management

Corporate
Governance

T&D Insurance Group’s
Business

Supplementary Materials
and Corporate Data

Employee Dialogue

Providing Human Resources Development Programs andEnhancing Corporate Value

goals, we’re conducting training and awareness surveys
associated with this switch.

In order to create a corporate culture where a diverse workforce can feel job satisfaction and reach their potential, the T&D Insurance Group provides a variety of opportunities to improve skills and an environment where individuals can advance their careers.

—— What human resource development programs
do you use?

Hiromu Nakayama

Ryo OgawaYui Oki

Kenichi Tachibana

T&D Holdings
Business Development
Department(T&D United Capital)
Joined in 2017

Taiyo Life
Field Education Division,
Sales Department
Joined in 2015

Daido Life
Human Resource Training Division,
Human Resource Development
Department
Joined in 2013

T&D Financial Life
Product Planning Division,
Product Department
Joined in October 2018
(mid-career hire)

Ogawa
I work in the Field Education Division of Taiyo
Life, where my main duties include training for SS (sales
staff) assistant managers (employees responsible fortraining the in-house sales representatives) of all branches
across Japan, online training for in-house sales representatives at all branch offices, and preparation of various
materials related to these training programs.
Tachibana I work in the Product Planning Division at T&D
Financial Life, where I’m involved in the development of
new products and the revision of existing products forfinancial institutions and independent insurance agents(insurance shops that handle products from multiple
insurers). Specifically, we research market trends, comeup with ideas for new products, plan products, promotesales, follow up after sales launch, and manage progress.
Nakayama I was transferred to T&D United Capital fromthe Business Development Department of T&D Holdings,

T&D Holdings |and I am currently working on the launch of our new closed
book business. The closed book business acquires andconsolidates blocks of policies in force (“closed books”)
of products that other insurance companies have stopped
selling and monetizes them by increasing their value. In
simple terms, it’s a reinsurance business. Specifically, I’m
involved in managing the investment portfolio of Fortitude
Group Holdings, LLC., our affiliate that specializes in closed
book business. In this role, I’m absorbing know-how, studying the development of the closed book business in Japan,
and working to develop new investment opportunities.
Oki
I work in Daido Life’s Human Resource Training
Division, where I’m in charge of managing training programs for agency sales representatives, mainly of tax
accountant offices, and operating an on-the-job training
system for sales representatives. Also, since Daido Lifedropped individual goals and changed them to team56

| Integrated Report 2022

Ogawa
Taiyo Life prioritizes the training of young
career-track employees, and as part of this policy, they canstudy at business school through an open application process. I took advantage of the program to attend acritical thinking course to improve my business skills. I feelthat learning together with people outside the company
gave me a very valuable opportunity to come into contact
with various opinions and ways of thinking.
Tachibana I took the same critical thinking course as Mr.
Ogawa. It’s a short three-month course aimed at teaching
you the skills to encourage behavioral changes in others
by clearly articulating the issues at the heart of problems
faced in the workplace and explaining them in a logicalmanner. As Mr. Ogawa said, it was a very intense experience where you’re actively learning together with people
outside the company.
Oki
I entered the company as a “locally-based
employee (area career-track),” which does not involve
nationwide relocation. I worked in agency sales for 8
years, and in my 9th year I took advantage of the “Career
Challenge System.” As I explained earlier, in the Human
Resource Training Division, I take on the challenge of
supporting branch offices standing in the completely opposite position when compared with the past. I was also
responsible for training junior staff at the branch office,but even though I could tell them a few things based on
my past successes, my existing skills were limited when it
came to motivating the junior staff members individually.
That’s why I decided to take advantage of this program,because I thought it would be a good experience towork at the head office, where I could learn from multiple
perspectives.
Nakayama For my first three years in the company, I was
responsible for training in-house sales representatives at
a branch office of Taiyo Life, and then I transferred to mycurrent department, where I’m involved in the closed bookbusiness. Since we’re building the business ourselves,
there’s no special training program; it’s based on selfstudy and on-the-job training. We have teleconferenceswith our overseas corporations two to three times a week,
so communication in English is essential. At the time my
English was not fluent, so my boss had to help me for awhile. Meanwhile, I attended an English language training
program and honed my English communication skills.

T&D Holdings |And since I had no knowledge of investment and investment management, I also started studying to become asecurities analyst. I’ve learned legal and other practicalmatters related to M&A through practice. Now that I’ve
been assigned to my current department, there are lots oflearning opportunities in addition to on-the-job training.

—— How do you apply what you’ve learned inyour work?
After taking the critical thinking course, I got
into the habit of constantly questioning what the true
issue is and thinking deeply about the nature of things.
In our training for SS assistant managers across Japan, I
ask them to get to the essence of things and to stick towhat the issue is and what is important to solve it. One ofour most important tasks is to analyze sales data and use
it to drive subsequent results. In doing so, I’ve become
very conscious of “missing the forest for the trees” toavoid into such a situation, which is to say, not seeing thewhole or the essence because one is too caught up in the
branches and leaves.
Tachibana Adding to what Mr. Ogawa just said, I learned
the importance of prioritizing and addressing the various
challenges that we face every day, and organizing what
my argument is and the reasoning behind it in a way thatis mutually exclusive and collectively exhaustive, and communicating it in a way that is convincing from the otherparty’s point of view. In particular, the Product Planning
Division does not start until the other party makes a
move. Therefore, whether it’s oral explanation or document preparation, I think attending the course helped mea lot to start thinking about things from the standpoint of
the other party, imagining the situation of both sales side
and consumer side, what is of most interest to them, andhow to convey our suggestions.
Ogawa

57

| Integrated Report 2022

Working toward the T&D
Insurance Group’s Vision
for Society

Oki
While working in my current department, I began to learn about coaching, including acknowledgment
skills, and I think my teaching skills have improved. WhenI worked in agency sales at the branch office, communication between myself, the agency, and future customers
was all one-on-one communication. In other words, I
didn’t have to listen to the opinions of various people, I
just had to think about the person in front of me. However, head office operations are completely different, andbasically communication is one-to-many. No matter what
measures you take, you need to listen to opinions from avariety of people. In these non-one-on-one communications, people tend to be overwhelmed by differences inopinions and positions and lose sight of the purpose of
the meeting or training. In such situations, I’ve graduallylearned how to clarify the purpose of what I’m trying to
do and communicate with each person face-to-face.
Nakayama At first, I was worried about communicating
in English, but now that I use English every day, I’m able
to use it in my work. My skills in examining investment
opportunities have also gradually reached a level where
I can apply them to my work thanks to the help of seniorstaff who have a wealth of knowledge and expertise.
Unlike the rest of you, I’m in a situation where there areno junior colleagues in my department to teach. Can you
give me some advice on how to deal with junior colleagues
in the future when I’m in a position to teach them?
OkiFirst, as I mentioned earlier, I try to listen to theother person’s ideas first, rather than imposing my own,
which is my natural tendency. Another piece of advice isto thank them when they do something for you and apologize when you make a mistake. Also, instead of reacting
negatively when they fail, I try to react positively, by finding and praising the good things. For example, I’ll say, “It
was good up to this point, but next time, let’s watch out
for this, and try to improve that.”Ogawa
I try to approach them with the attitude of “let’s

T&D Holdings |Try & Discover for
Creation of
Shared Value

Further Advancementof Capital and Risk
Management

Corporate
Governance

Ogawa
Recently, I was involved in launching a new
Taiyo Life sales office, and in support of this, I was sent torecruit and train in-house sales representatives for three
to four months. This reminded me once again that I feel
fulfilled when I can contribute to the growth of our inhouse sales representatives. In my current department,
I’m developing my own sales skills while fostering theemployees in charge of training the in-house sales representatives. Also, in my critical thinking class, I learned how
to communicate to others. Eventually, I would like to experience being a branch manager so that I can use theseskills more in practice, especially in training the branch’s
in-house sales representatives. After that, I envision a career plan in which I would return to the Sales Department
and contribute to improving the training level of in-housesales representatives on a company-wide basis.
Oki
I intend to use the multifaceted perspective I
developed at the head office to help foster junior staff.
I’ve always been impatient by nature, and when juniorstaff asked me, “What’s this? What should I do next?,”
I tended to respond, “Do this, do that, do that,” rather
than teach them. However, as a result of my experience
working at the head office, instead of giving one-way instructions to junior employees or imposing my own ideason them, I’ve begun to focus on eliciting what problems
they’re struggling with and how to solve them. If theopportunity arises, I hope to experience head office workoutside of my current department, and eventually, as amanager, contribute to the creation of an organization
where junior staff can freely demonstrate their abilities
and achieve self-fulfillment.
Tachibana I still feel a gap with my boss in skills such asgetting buy-in from various people to achieve objectives,
encouraging others to change their behavior, and getting

58| Integrated Report 2022

them to take action. To close this gap, I would like to actively apply what I learned in the critical thinking course,hone my skills in management work, and build a solid
foundation for career advancement.
Nakayama I would like to get the greatest possible advantage out of this opportunity I’ve had to gain valuable
experience in a highly specialized department at a young
age. On top of that, if I have an opportunity, I would liketo experience overseas investment management, and in
the future, I would like to be in charge of the investment
management department. For the time being, however,I’m focused on making the new business of closed books
one of the Group’s profit pillars, while learning more every
day through my work.

—— What other programs are necessary for thesustained growth of the Group?
Oki
I would like to see more Group-wide exchange
programs and training. It’s been 10 years since I joined
the company as a new graduate, but when I talk with
mid-career recruits during the training, I sometimes feelthat my perspectives and insights are narrow. When I
first joined the company, we had one or two days of
joint group work with Taiyo Life during the new employee training, and I remember thinking that it was a goodlearning experience because the company cultures werequite different. Since we are Group companies, we shouldhave the opportunity to incorporate each other’s good
points and suggest points that need to be improved.
When I took advantage of the Career Challenge System,it broadened my horizons immediately. Also, here at thisroundtable discussion, I feel I’ve learned a lot about Mr.
Nakayama’s closed book business, and I’ve become familiar with the work of T&D Holdings. I think more exchanges between Group companies and departments would
strengthen the Group’s sense of unity.
Ogawa
After interacting with people from different

T&D Holdings |Supplementary Materials
and Corporate Data

industries and departments at the business school, I feltthat interaction between Group companies is significant
in the sense of having a balanced mindset that is notbiased toward the thinking of our own company or department. At the same time, it fosters a competitive spirit,
which I think is very important for our growth as a Group.
Nakayama In my department, there are people with various experiences such as Daido Life, Taiyo Life, and theoutside world. In addition, I have exchanges with manydifferent departments, and I’m fortunate to learn a lot.
As you all said, I think that interaction within the Group isimportant when we consider the growth of the Group.
Tachibana It would be great if we could plan “handson” training programs across the Group, regardless ofwhether you are a salesperson or office worker. It would
be place where participants actively put the informationand knowledge shared there into practice in the field andmeet regularly to exchange information on their progressand reflections. Moreover, since we’re in an era in which
we must develop high value-added products and innovative sales methods in order to survive, it seems to me
that it’s becoming more and more necessary to cultivate
autonomous and specialized employees who can think
and act on their own initiative and have strengths in specific fields. It’s important to cultivate employees who canlearn, act, and communicate independently, rather than
waiting for instructions. In that sense, I think we should
enhance the Career Challenge System. I also think weneed to create a system in which career counselors assist
individual employees in formulating their career visions.
It would provide opportunities and venues for employees
to take stock of their career to date, identify challenges
and strengths, and think about where they want to be in
the future.

work hard together,” treating them as equals rather than
my juniors. I value our attitude of proceeding with mattersthrough consultation rather than one-way commands.
Tachibana My previous job was in sales at a bank, and I
came to my current department after working in sales atour company. I feel that these experiences have given
me strengths in certain areas, but I treat both my seniors
and juniors with the understanding that they have various experiences and strengths that I don’t have. In otherwords, I try to build a relationship in which we can say
anything to each other with no division between seniors
and juniors so that we can take advantage of each other’s
experiences and learn from each other.
Nakayama Your comments are very helpful, thank you.

—— W
 hat kind of career development do you havein mind for the future?

T&D Insurance Group’s
Business

59| Integrated Report 2022

Working toward the T&D
Insurance Group’s Vision
for Society

Try & Discover for
Creation of
Shared Value

Further Advancementof Capital and Risk
Management

Corporate
Governance

T&D Insurance Group’s
Business

Supplementary Materials
and Corporate Data

Competitive Advantage Sources — (3)by using digital technologies and considering future-oriented insurance underwriting. Daido Life has also started to provide the Dodai? web service, which enables
business owners to communicate with each other, and isproviding support to help resolve social issues faced byIntellectual Capital
The T&D Insurance Group is developing valuable products and services based on abundant data accumulated until now andcollaborations with companies from different industries.

SMEs.
At the same time, we are taking steps to develop human resources and cultivate a culture aimed at promoting
DX while also building reliable systems for supporting DX
promotion.

Conduct of Daido Life Survey
Know-how core life insurancecompanies acquire in eachspecialized market

Daido Life has been conducting the Daido Life Survey
in the hope of contributing to the sustainable development of SMEs every month since October of 2015. This
questionnaire-based survey targets SME business owners throughout the country and asks them about issues
that include business sentiment and management issues(number of responding companies: around 10,000).
This unfiltered feedback from business owners is thencompiled into a report and distributed all over the country to provide management tips, and the report is also
made available to the general public. The survey has also

Innovative products and services
through collaborations withcompanies from different
industries

For more details, please refer to Characteristics of the T&D InsuranceGroup on page 14 and 15.

Economic and market analysis
ability and asset management
know-how of core life insurancecompanies and T&D AssetManagement

Expertise on the closed bookbusiness accumulated throughparticipation into management of
Fortitude Group Holdings, LLC
For more details, please refer to page 36 and 37.

been the subject of increasing attention in recent years,
including the introduction of the survey results by various
media outlets as well as the introduction of the survey
in the White Paper on Small and Medium Enterprises inJapan (2021 and 2022 editions).

Daido Life Website

Daido Life Survey(Japanese)* Previous reports can beavailable on Daido Life’s
website.

Activities of Taiyo Life Aging Society InstituteTowards Further Advancement of Intellectual Capital
Initiatives aimed at utilizing digital technologies
To achieve further DX (digital transformation) acceleration, the T&D Insurance Group formulated its T&D Insurance Group Digital Vision in August of 2021. In addition,
we established the Group DX Promotion Committee in
April of 2022 to enhance our DX speed and agility as wellas our governance.
We hope to pursue initiatives aimed at transforming

the Group by utilizing advancing digital technologies aswell as data owned by the Group and promoting a unified
Group-wide DX approach aimed at creating experiencevalue for each of our customers.
Taiyo Life is already taking steps to shift to hybrid-stylesales utilizing digital data, including Sma-Hoken. Similarly,
Daido Life is substantially improving insurance functions

Closed book business

Digitaltechnology
contribution

Newbusinessmodel

Utilizationof existing
assetsReallocation of management
resources

Increased value throughthe effective utilization of
know-how

Initiatives on Cyber Security and Information Leakage

Digitization progress throughincreased independence ofeach company

Increased value throughthe effective utilization of
know-howCore life insurance

Non-life insurance and asset management

Life insurance fieldNon-life insurance field

Initiatives supporting contribution• Enhanced monitoring of and governance related to the DX promotion situation• Creation of a DX culture

Risk Management of Intellectual Capital

New areas
デジタル経済圏の確立・
Establishment of digital
新商品の開発economies and new productdevelopment
Joint use of various types of
information and contributions
to cross-selling and upselling

Remote handling/no actual
things and use of IA for
business operationsof 2022, we started conducting joint research on cancer
and lifestyle disease prevention in collaboration with
Ajinomoto Co., Inc. by utilizing Taiyo Life’s employee
checkup data, blood amino acid concentration profiles,
and other information. In addition, in June of the same
year, during joint research we were conducting with MCBI,
we learned that Taiyo Life employees in their 70s to 80s,
who have been conducting sales activities for us for many
years, have a lower risk of dementia than general individuals in the same age bracket, and we thereby confirmedthat long-term activities such as walking, thinking, andconversing might reduce the risk of dementia.

Taiyo Life established the Taiyo Life Aging Society Institute on April 1, 2020 to further develop measures that
help solve social issues such as a declining birthrate andthe extension of the healthy life expectancy. The institutechiefly undertakes joint research with mainly academic
institutions and leverages big data with a focus on theprevention, early detection and treatment of diseases.
The institute aims to contribute to society by broadly
publishing its results and by applying the findings of its
joint research to insurance products and services, thereby
looking to develop products and services that help customers live longer and more energetic lives. In February• Development of organizations, systems, and meeting bodies• Cyber security measures• Securing and development of DX human resources
Etc.

In addition, we have been recognized for the above
initiatives, and, in the 2021 Cyber Index Corporate Survey
released by the Information Technology Federation ofJapan on November 30, 2021, we were selected as oneof 42 companies that serve as a role model for others dueto their outstanding stance on dealing with cyber security
and disclosing information.

The T&D Insurance Group recognizes both the advancement of intellectual capital and the protection of information assets from cyber attacks and similar crimes as
high-priority management issues, and—to fulfill our social
responsibilities as a company engaged in life insurance
business and the like—we have formulated our Group Information Security Policy and Rules on the Group’s Cyber
Security Management and made engagement in cybersecurity mandatory for all executives and employees.

* Source: 2021 Cyber Index Corporate Survey (Japanese)

https://www.itrenmei.jp/topics/2021/3700/* For more details, please refer to Corporate Governance on page 78.

T&D Holdings |60| Integrated Report 2022

T&D Holdings |61| Integrated Report 2022

Working toward the T&D
Insurance Group’s Vision
for Society

Try & Discover for
Creation of
Shared Value

Further Advancementof Capital and Risk
Management

Corporate
Governance

T&D Insurance Group’s
Business

Supplementary Materials
and Corporate Data

Competitive Advantage Sources — (4)Daido Life

Social and Relationship Capital

Daido Life has a comprehensive lineup of products forprotecting SMEs, and we provide a full range of protectionthat includes not only conventional death benefits but also
disability benefit insurance, etc. We are also expanding ourrange of solutions for providing support related to resolving social issues faced by SMEs, including health-oriented

The T&D Insurance Group is working on the creation of shared value by providing customers with valuable information,
services, and products as well as by collaborating with agents and tie-up organizations.

Customer Satisfaction (fiscal 2021)

Taiyo Life Overall satisfaction level

Number of Policies in Force / Number of Corporate Clients(March 31, 2022)

91.9%

Daido Life Overall satisfaction level

81.1%

T&D Financial Life Satisfaction levelat the contract signing stage

98.0%

To contribute to SMEs solving social issues/developing sustainably

Taiyo Life Number ofpolicies in force

Approximately

7.8 million

Daido Life Number ofcorporate clients

Approximately

370,000

Approximately

400,000

T&D Financial Life Numberof policies in force

Web service for SMEs “Dodai?”Supporting promotion of health-oriented management⃝ Expansion of various management support services⃝ Consolidated provision of ”prevention” and “preparation”

through the new product Kaisha Minnade KENCO+

15,000186

Dialogues with Companies in Equity Portfolio (from July 2021 to June 2022)

Approximately

T&D Financial Life

Supporting SMEs solving management issues⃝ Supporting sustainable management⃝ Expanding health management program “KSP”

Number of Agents (March 31, 2022)
Daido Life

management, the SDGs, and DX, and we are aiming tocontribute to the sustainable growth and developmentof SMEs more greatly. We are centrally providing thesesolutions through our SME web service Dodai?, which we
introduced in March of 2022.

Taiyo Life

46 companies

Daido Life

86 companies

T&D Asset Management

KaishaMinnadeKENCO+

237 companies

Sustainability
management support program

Safety check-up system

Supporting M&A

Assessment service ofcorporate value

Reports on businesses

T&D Club Off

KENCO SUPPORTPROGRAM⃝ Enlarging various health related services

Towards Further Advancement of Social and Relationship Capital

Cancer specificphone-call consultations

Second opinion

Stress checks

Referral to
Full medical check-up

etc.

etc.

Providing Customers with Valuable Information, Services, and Products
To continue to strengthen/expand the lineup, thereby expanding the areas in which we can fulfill our role.

Taiyo Life

New productTaiyo Life endeavors to promptly deliver products tocustomers that respond to the social situation and current needs, including protection from dementia and the
COVID-19 pandemic. In addition to providing insurance
products, we also provide services related to early detec-tion and prevention of dementia and critical diseases aswell as health promotion services in order to help our customers lead long, healthy lives. Going forward, the Company will continue with its efforts to respond to the extensionof the healthy life expectancy, a major social issue.

Special Internet Services for Customers⃝Expansion of Taiyo Life My Page users to include not only policyholders
but also insured persons, their registered family members, and others

Dementia Prevention Service
MCI Screening Plus to assess signs ofMild Cognitive Impairment (MCI), a
known pre-dementia stage

Feature⃝ Covers “death” “disability” and “critical illness” with
one insurance policy
Feature2

Health-promoting type of insurance that “promotes healthoriented management®” amongst all members of the company⃝ Targeted steps will be shared among the company and members will be able tohave fun while participating in health-oriented management

Upon the request of our customers, our in-housestaff visit them to provide support related to theclaim procedures for benefits, etc.

Health Promotion

Senior Visit Service

Taiyo Life Health Promotion App,
which supports customers’ healthpromotion in various ways, such as
walking, sleeping, and brain training

One annual visit to senior customers
Support aimed at ensuring that customers claim all relevant benefits, etc.,
including explaining contract details to them and regularly checking whether
they have been hospitalized or undergone surgery
62

Extensive coverage with rational and inexpensive
premiums that “prepares for various risks”
of all the people in the company

Visit Services

Kaketsuke-Tai Service

T&D Holdings |We aimed to come up with a name that fosters casual, vigorous, frank and flat
communication amongst management from all over Japan, coming together andtranscending boundaries to share their thoughts.

⃝ Integrated KENCO SUPPORT PROGRAM (KSP) that supports health managementof a company with coverage

Disease Prevention Service| Integrated Report 2022

SMEs ecosystem “Dodai?”

Our thoughts behind the naming

A new type of insurance that integrated“prevention” of illness and “reserves”
after retirement⃝Ability to confirm insurance contract information and view various procedures and digitized insurance certificates via My Page

Amino Index® Risk Screening, which
offers one-stop evaluation of the riskof currently having cancer, the risk of
future strokes, myocardial infarction,or diabetes, etc.

New service

Concept

1

Dementia and Disease Prevention Services

Kaisha Minnade KENCO+

Feature⃝ If the “average steps taken per day is/more than 8,000 steps,” premiums payment
for the following year will be discounted

Feature3

1⃝ Introduction of various management/health support services provided by Daido
Life with examples
FeatureWith “easy administration,” customer can take out theinsurance whenever, wherever.

2

Learning (examples/webinars)⃝ Contents of articles that include examples taken from management and various
webinars⃝ Application can be done whenever, wherever from the customer’ssmartphones/PCs.

Feature⃝ Insurance that is easier to take out compared to past products with productexclusive declarations and underwriting standard.

3

Consulting (community)⃝ Exchanging information related to management issues among the management/
providing opportunities for network building* “Heath-oriented management®” is a registered trademark of Nonprofit Organization
Kenkokeiei.

T&D Holdings |Trying out (supporting service)63| Integrated Report 2022

Working toward the T&D
Insurance Group’s Vision
for Society

T&D Financial Life

Further Advancementof Capital and Risk
Management

Corporate
Governance

T&D Insurance Group’s
Business

Supplementary Materials
and Corporate Data

Risk Management of Social and Relationship Capital

T&D Financial Life is developing insurance products in linewith the needs of customers, including Shogai PremiumWorld 5 and the hybrid series, as interest in independent
asset formation and health management increases toForeign exchange rate-linked whole life insurance

prepare for the Centenarian Age. In addition, we provide
optimal solutions through support to facilitate the healthy
and abundant lives of our customers.
Services
Overview

Health Counseling and
Health Support Service

Nursing Care and Dementia
Support Service• K aigo Concierge, a nursing• The M3 Patient Support Program, a health counseling andcare and dementia support
health support service provided service provided by internetby M3, Inc.
infinity Inc.

Shogai Premium World 5

New products

Try & Discover for
Creation of
Shared Value

Variable insurance (the hybrid series)

Specific
examplesHybrid Tsumitate Life

Family Registration Program• Inquiries about policy details,
various document requesting,and other procedures byregistered family members
by proxy

Ask Doctors

Telephone and email-based
counseling

Inquiries about policy details

Free nurse advice(patient supporter)

Facility introduction andinspection session arrangements

Order of claim forms

Multiple opinion

Care manager referrals

Proxy claim

Best doctor selection

Dementia prevention toolHybrid Anshin Life

Initiatives to Respond to Customer Feedback
System to Reflect Customer Feedback in Operations
The Group’s three life insurance companies have set up
dedicated departments and committees that include external members to oversee our customer-oriented business
operations. We have built a comprehensive system forensuring customer satisfaction at all stages of interaction
with customers, from making contracts to payment of
insurance claims and benefits, based on our customer-oriented business operation policy and specific guidelines forthe amelioration of customer complaints. All the feedback
collected from customers is input into a centrally managed
database and shared by the relevant units for the development and quality improvement of products and services, aswell as for the improvement of business practices.

Customer Feedback Collected from
Daily Sales Activities
To respond to the changing needs of society through theprovision of better products and services, our three life
insurance companies have set up a number of points ofcontact with customers, such as sales representatives, sales
agents, call centers (customer service centers), and theInternet to collect as much customer feedback as possible. In addition, the companies are conducting customer
satisfaction surveys to inquire about the level of satisfaction
provided by our products, services, and after-sales services.

Cooperation with Sales Agents and Cooperating Organizations
Sales Agent Training Program
At Daido Life, the head office and branches work together
closely to provide high-quality support for sales agents byassisting them in responding to customers’ diversified needs.
As part of these efforts, the company develops programs tooffer practical training, using its own e-learning materials andpractical guides to help sales agents acquire broad knowledge on the compliance and insurance business.
Business Partner Meetings
Daido Life has entered into partnerships with SME industry associations as well as the professional organizationsof tax accountants and has built a sales structure aimed
at offering applicable life insurance products tailored to
the needs of various member companies and the clientsof those member tax accountants. Because these partnerorganizations and agents are key stakeholders of Daido

Life, the company holds regular meetings with its partners
to report the latest business developments and to hear
their views on Daido Life’s business operations.
Wholesaler Activities
T&D Financial Life carries out elaborate support activities
for its sales agents, such as financial institutions, throughits sales staff assigned to assist sales agents (wholesaler) inorder to enable them to make the best possible proposals
to customers. In addition, to win the trust of customers
and sales agents, T&D Financial Life provides practical skill
development training to sales staff to deepen their knowledge of not only insurance but also other financial products, overall asset management, related laws and regulations, and systems as well as to improve their presentation
skills for accurately explaining features of our products tocustomers and sales agents.

System for Reflecting Customer Feedback in Operations (Illustration is an example from Daido Life)
Customers

Customer Feedback
Council*2

Complaints, opinions, requests, appreciation, etc.

Customer contact points
Call center

WebsiteBranchofficeCollection by employees

Surveys (tacit opinions)

Systems for
proposing newmeasures, etc.

Various customer surveys

Gathering and analyzing
customer feedback

Compliance Promotion Department

Improving operations fromthe perspective of customers

Operational departments

Smile Post

Informalmeetings
with customers

Opinions that were given
by experts fromthe customers’
points of view

Compliance Committee*1[Deliberate across divisions, including the Sales Division, Policy Division, and Internal Control Division]

Investing to Help Build a Sustainable Society

Report and proposals

The Group manages premiums entrusted to us by customers, which are funds with significant public relevance.
As a responsible institutional investor, we have also been
engaged in asset management, while being fully consciousof ESG issues, including climate change and the response
to COVID-19, to realize a sustainable society. In April of2021, the Group formulated the T&D Insurance Group ESG
investment policy to clarify its stance on ESG investment.
In addition, Taiyo Life, Daido Life, and T&D AssetManagement fully endorse the Principles for Responsible Investment (PRI) and the Principles for Responsible
Institutional Investors (the Japanese version of the Stewardship Code). In exercising voting rights, the companies

T&D Holdings |make every effort to solve problems through purposeful
dialogue with the goal of contributing to the sustained
growth of investee companies. If a problem cannot be
solved even through dialogue, their policy is to voteagainst the agenda item in question.
As an example of ESG investment, in 2015, T&D AssetManagement set up a fund through which it selectively invests
in companies that have made outstanding efforts in the areaof ESG, and Taiyo Life and Daido Life invested in the fund.
The Group as a whole has hitherto focused its investments on
aiming to solve issues. More recently, the Group has invested
in social bonds that aid a program to help purchase basic
foods in Latin America and the Caribbean nations.

64| Integrated Report 2022

Board of Directors / Executive Management Board*1 Compliance Committee	We established the Compliance Committee to further promote our corporate motto of customer-oriented corporate activities and to develop and establish a Company-wide attitude of compliancepromotion. In addition to continuously verifying all processes from insurance solicitation to payments from the perspective of customers, the Compliance Committee submits reports and proposals for
improvements to the Board of Directors and the Executive Management Board.
*2 Customer Feedback Council
	The company has established the Customer Feedback Council in order to utilize the insights of outside experts in sound business operations from the perspective of customers. The Customer Feedback
Council monitors the situation with business operations related to improving customer service and reviews the adequacy and effectiveness of the content of deliberations by the Compliance Committee.

Customer Complaints
Fiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021

Taiyo Life

5,657

6,557

6,023

6,660

Daido Life

10,164

7,809

6,181

5,965

T&D Financial Life

1,162

1,231

886

867

T&D Holdings |65| Integrated Report 2022

Working toward the T&D
Insurance Group’s Vision
for Society

Try & Discover for
Creation of
Shared Value

Further Advancementof Capital and Risk
Management

Corporate
Governance

T&D Insurance Group’s
Business

Supplementary Materials
and Corporate Data

Competitive Advantage Sources — (5)Natural Capital (Action for the TCFD)
The T&D Insurance Group has enacted “T&D Insurance Group Environmental Policy” to clearly demonstrate its commitment to
the environment, and we strive to achieve sustainable growth along with society while also fulfilling the public mission of life
insurance and other businesses as well as our corporate social responsibilities.

Disclosure of climate-related financial information based on the Task Forceon Climate-related Financial Disclosure
The Task Force on Climate-related Financial Disclosure (TCFD), which was established by the Financial Stability Board (FSB)
and published in June of 2017, has formulated a proposal on how to consistently disclose climate-related financial information in order to make clear comparisons related to risks and opportunities pertaining to the effects of climate change. Climate change is a global issue that has a major effect on the lives of people due to how it is changing the world’s economic
behavior as well as society. The T&D Insurance Group has endorsed the TCFD proposal, and we actively strive to disclose
easy-to-understand climate-related financial information.
CO2 Emission Volume (Fiscal 2021)

Electricity Consumption (Fiscal 2021)

Office Paper Consumption (Fiscal 2021)

Green Purchasing Ratio (Fiscal 2021)

75,072 t

96,000 MWh

96.7 t92.6 %

Strategies
To verify the effects on the Group of various climate change risks (physical risks*1 and transition risks*2), we have implemented the scenario analyses below.
*1 Business risks associated with natural disasters caused by extreme weather such as typhoons and floods, and those associated with phenomena such as an increase in the average temperature and arise in the sea level*2 Business risks arising from the actions of government, corporations, and consumers in the process of carrying out the transition to a low carbon/decarbonized society (through a significant reduction ofgreenhouse gas emissions)

Scenario analyses: what the world looks like under each scenario
1.5°C scenario world

4°C scenario world

Assumptions
Strict measures are taken against climate change. By the end of the century,
the average annual temperature will increase by between 1.0°C and 1.8°C.

Assumptions
No measures are taken against climate change beyond the current statusquo. By the end of the century, the average annual temperature will
increase by between 3.3°C and 5.7°C.

Overview
Due to the rise in average temperatures, natural disasters become more
frequent and intense. (However, the impact is kept below a certain level.)Strict measures to combat global warming increase business costs foreach company.
Technological innovation progresses (and new players emerge) in supportof low or net-zero carbon emissions.
Reallocation of investment away from companies that are unable tosupport low or net-zero carbon emissions.

Overview
Due to the large rise in average temperatures, the impact of frequent andintense natural disasters becomes significant.
Sea level rise, storm surge, flooding, and heavy rainfall have a significant
impact on coastal areas. (A review of lifestyle and BCP is also necessary.
The companies face increased business costs.)
Reallocation of investment away from companies that are vulnerable tonatural disasters.
Reference scenarios
Scenarios related to transition risks based on RCP8.5 and the hot house
world category of the NGFS

Reference scenarios
Scenarios related to transition risks based on RCP2.6 and the disorderly
and orderly categories of the NGFS

Towards Further Advancement of Natural Capital
Physical effects caused by a rise in average temperature (1.5°C scenario < 4°C scenario)

Governance

Acute

Monitoring by the Board of Directors• The Board of Directors has established the Group SDGs
Committee as a subordinate organ to the Board with themission of deliberating on and considering basic policies
related to the SDGs and CSR as well as measures related
to the global environment and social issues.
• The Group SDGs Committee—which is chaired by
the Representative Director and President, who also
serves as the chairperson of the Board of Directors, andconsists of directors and general managers in charge ofeach Group company’s sustainability/CSR departments
and investment management departments—establishes
our basic policies related to SDGs and other global
environment and social issues as well as our goals
and measures for handling climate change. Under thesupervision of the Board of Directors, the committeemonitors the situation of our initiatives twice per year
and reports its findings to the Board of Directors.
• The Board of Directors established the Climate Change
Risk Subcommittee as a subordinate body of the Group
SDGs Committee. The purpose of the Subcommittee isto support the SDGs Committee in formulating policies
T&D Holdings |and considering actions related to climate change byinvestigating and reviewing the status of climate changerisks and the necessary responses and then reportingthese to the SDGs Committee and offering proposals.
The Subcommittee consists of the persons in charge (section managers) of the planning, risk management, andasset management departments at Group companies.
Role of the management• The Company has established the Executive Management Board, comprising the Chairman, the President,
the Vice President and executive officers in charge of
specified areas of operations, for the purpose of deliberating important matters related to management of
the Group. The Executive Management Board receives
detailed reports on all policies and measures regarding
the global environment and social issues that are deliberated at the Group SDGs Committee. Important matters are also deliberated at the Executive Management
Board, and the results thereof are reported to the Boardof Directors.

66| Integrated Report 2022

• Frequent and intense natural disasters such as typhoons and floods.
• The number of injuries and fatalities due to natural disasters increases due to an increase in extreme weather events
such as typhoons and floods.

Chronic• Changes in rainfall and weather patterns, rising average temperatures, and rising sea levels.
• Increasing average temperatures lead to an increase in the number of heat stress deaths and heat stroke patients.
• The risk of contracting an infectious disease increases due to the expansion of the habitats of disease vectors.

Impact of the transition to a society with low or net-zero carbon emissions (1.5°C scenario)
Policies, laws, and regulations
Tighter regulations on greenhouse gas (GHG) emissions and the introduction of a carbon tax. Expanded disclosure requirements (increased business costs for companies).
Technology development
Progress in reducing the carbon footprint of existing technologies and the introduction of new technologies such as renewable energy,
storage batteries, and electric vehicles.
While some companies emerge and grow by seizing new business opportunities, others have been unable to respond to low or net-zerocarbon emissions measures and fail.
Changes in investor behavior
Reduced investment and lending to companies that cannot comply with regulations, companies that cannot exit from existing GHG emissions businesses, and companies that have recorded fossil fuels as stranded assets. Expanded investment and financing to companies that
contribute to low or net-zero carbon emissions.

T&D Holdings |67| Integrated Report 2022

Working toward the T&D
Insurance Group’s Vision
for Society

Scenario analysis: impact on the Group and countermeasures

Impact on underwriting
profitability

Physical risks

BCP response
Impact on asset management income

Transition risks

1.5°C scenario

4°C scenarioIncreases in the number of heat stress deaths and heat stroke
patients.

 ignificantly higher average temperatures will lead to larger increases inSheat stress deaths and heat stroke patients than under the 1.5°C scenario.

 oth of these increases will be gradual over a long period of
B
time, which will limit their impact on underwriting profitability.

 oth of these increases will be gradual over a long period of time, but willB
be larger than under the 1.5°C scenario.

 his will be addressed by conducting an appropriate review ofTpremium rates.

 e will address this by conducting a more detailed review of premiumW
rates to avoid a significant negative impact on underwriting profitability.

 business continuity plan has been established at another siteAin case a major disaster causes a disruption to the functions ofcritical sites.

 o address the increasing intensity of natural disasters, we will use hazard
Tmaps and similar tools to assess the risk level of our business sites, relocate
important sites, establish backup sites, and implement remote decentralization measures using IT as appropriate.

In the medium-term, up to the middle of this century, someindustries will be significantly affected by tighter regulations on
GHG emissions, the introduction of a carbon tax, the replacement of old technologies with new low or net-zero carbon
technologies, and changes in consumer values and behaviors.

 he medium-term impact on the investees and borrowers of the GroupT
will be smaller, since there will be no sudden changes in the environment
expected in the 1.5°C scenario.

 o avoid damage to asset management income from the impact
Ton the investees and borrowers of the Group, we will work as
appropriate in accordance with the Principles for Responsible
Investment (PRI) through the promotion of investment andfinancing activities to businesses and companies that contributeto the transition to a society with low or net-zero carbon emissions, for example renewable energy businesses, and throughengagement with existing investees.

 owever, in the long-term time horizon up to the end of the century, it isH
assumed that the increase in average temperatures and the intensificationof natural disasters will have a significant negative physical impact on eachcompany’s business activities.
In order to avoid damage to our asset management income, we will avoid
or withdraw investment and financing to firms with significant physicalrisks.

Reference data: physical risks: Climate Change Adaptation Information Platform, transition risks: NGFS and Bank of England scenarios

Scenario analysis: Group’s business opportunities• Changes in the morbidity rate and average life expectancy associated with the progress of global warming are expected to give rise to needs for protection (involving death, annuities, and medical care) against emerging risks. There areopportunities to expand net sales of the insurance business, by expanding and providing a wider scope of protection inorder to meet such emerging needs.
• As the reduction of GHG emissions progresses, the Group, as an institutional investor, has opportunities to enhancethe value of investment assets and expand investment returns stably over the long term, by investing and lending to
expanding clean energy development and energy conservation businesses, and by owning and managing real estate(such as office buildings) with superior environmental performance.
• The Group also has opportunities to expand its business domains and earnings as a business operator, rather than as an
institutional investor, by developing or entering into new business domains related to the mitigation of and adaptation
to climate change.

Indicators and Goals• The Group establishes its environmental protection-related targets and is working on initiatives to achieve themin its daily business activities. The four targets are “toreduce CO2 emissions,” “to reduce electricity consumption,” “to reduce office paper consumption,” and “toimprove the green purchasing ratio.” Progress toward theachievement of these targets is measured semi-annually,and disclosed in various reports and websites.
• As for CO2 emissions, Scope 1 (direct emissions fromthe Company), Scope 2 (indirect emissions via the pur-T&D Holdings |chase of energy including electric power), and Scope 3(indirect emissions via other corporate activities including procurement of materials, transport, and disposal)
are measured and disclosed on a continuous basis.
• The Group is working reducing CO2 emissions withan achievement deadline of FY2025, targeting a 40%
reduction (Scope 1 + 2; compared to FY2013; per unit offloor space).
• In addition to our Scope 1 and 2 emissions, we areaiming to achieve net zero emissions inclusive of the in-68| Integrated Report 2022

Try & Discover for
Creation of
Shared Value

Further Advancementof Capital and Risk
Management

Corporate
Governancevestees and borrowers of the Group and lending targets(Scope 3: category 15) by fiscal 2050.
• As for the target to reduce electricity consumption, targets for the five-year periods from FY2008 and FY2013
were both achieved. Efforts are underway to achieve
the target for the next ten-year period from FY2018.
In addition, we are a member of the global initiative
RE100, that aims to procure 100% of the electricity usedin business activities from renewable energy sources,

T&D Insurance Group’s
Business

Supplementary Materials
and Corporate Dataand we are aiming to procure all of our electricity fromsources of this type by fiscal 2050. To achieve this goal,
we have set an interim target of 60% of electricity consumption to be derived from renewable energy sourcesby fiscal 2030.
• As for the target to reduce office paper consumption,
the target for the five-year period from FY2014 wasachieved. Efforts are underway to achieve the target for
the next five-year period from FY2019.

Risk Management of Natural Capital
Risk Management
Risk identification and assessment process• The Group exhaustively classifies the risks it faces
through use of a risk profile, with a view toward dealing
with increasingly diverse and complex risks. Risks arelisted exhaustively by risk category. The Group thenidentifies and assesses these risks, and prioritizes initiatives by considering factors such as each risk’s significance, potential impact, and current status of control,
which are then reflected in management plans, asnecessary. The Group registers climate change-relatedrisks on the risk profile as critical risks to be managed,
and scrutinizes, identifies, and assesses these risks.
Climate change-related risks are identified and assessed
as insurance underwriting risk, asset management risk,
operational risk, reputational risk, and risks that may
have broad-based impacts on overall management.

Management of climate change-related risks(1) Physical risks• The Group considers to mitigate deterioration ofunderwriting profitability through reinsurance andother means, along with large-scale disaster risks(insurance underwriting risks).
• The Group monitors existing products and implements countermeasures, including product revisions,as necessary.
(2) Transition risks• The Group engages in investments and borrowings, taking into account climate change-relatedrisks based on the Principles for Responsible Investment (PRI).
• The Group monitors trends in economic policies,
laws, and regulations, and share the information
across the Group, through the Group SDGs Committee and the Group Management Promotion Committee. Measures are taken to ensure that the Group
responds to such trends in a sufficiently effective
manner at the level expected of a listed company.

Risk management process• In order to identify and grasp newly emerging risks, aswell as changes in risks that have already been identified, a review of the risk profile is carried out twice
per year, and reported to the Group Risk Management
Committee and the Board of Directors.
• During our risk-profile-based Company-wide risk identification and evaluation process, we manage climatechange-related risks from the perspectives below.

T&D Holdings |69| Integrated Report 2022