May 25, 2022

Financial Results for the Fiscal Year Ended March 31, 2022
Fukoku Mutual Life Insurance Company (President: Yoshiteru Yoneyama) announces
financial results for the fiscal year ended March 31, 2022.

[Contents]
1. Business Highlights ……………………………………………..……………………

P. 1

2. Investment Results of General Account Assets …………………………………..….

P. 3

3. Non-consolidated Balance Sheets ………………………….………………………..

P. 11

4. Non-consolidated Statements of Operations …………………………………….…..

P. 12

5. Breakdown of Ordinary Profits (Fundamental Profit) ………………………….. …

P. 26

6. Non-consolidated Statements of Changes in Net Assets ……………….……..…

P. 27

7. Non-consolidated Statements of Surplus …………………………………………

P. 29…………………………….

P. 30

9. Solvency Margin Ratio ………………………….…………………………………..

P. 31…………………………….……………………………

P. 32

11. Status of the Company, Subsidiaries and Affiliates …………………………………

P. 39

8. Disclosed Claims Based on Insurance Business Act

10. Status of Separate AccountAttached: Supplementary Materials for the Fiscal Year Ended March 31, 2022

Fukoku Mutual Life Insurance Company

Financial Summary for the Fiscal Year Ended March 31, 2022
1. Business Highlights(1) Policies in Force, New Policies and Surrendered and Lapsed Policies(i) Policies in Force
As of March 31, 2021
Number of policies

As of March 31, 2022

AmountNumber of policies

Amount(Thousands)

Changes(%, Pre-FYE)(100 millionsof yen)Changes(%, Pre-FYE)(Thousands)

Changes(%, Pre-FYE)(100 millionsof yen)Changes(%, Pre-FYE)

Individual insurance

3,172

99.6

224,018

99.9

3,165

99.8

223,80999.9

Individual annuities

604

96.4

23,624

96.2

583

96.6

22,692

96.1

3,776

99.1

247,643

99.5

3,749

99.3

246,501

99.5

Group insurance——

175,362

99.6

—

—

173,40798.9

Group annuities——

22,610

101.2

—

—

22,898101.3

Subtotal

Notes: 1. Policy amounts for individual annuities are equal to (a) the funds to be held at the time annuity payments are to commence for anannuity for which annuity payments have not yet commenced and (b) the amount of policy reserve for an annuity for which payments
have commenced and (c) special riders for term insurance attached to individual annuities.
Notes: 2. Policy amount in force for group annuities is equal to the amount of outstanding policy reserve.

(ii) New Policies
Total
Year ended March 31, 2021

Number of policies(Thousands)

AmountChanges(%, YoY)

Net increase by
conversion

New business(100 millionsof yen)AmountChanges(%, YoY)(100 millions ofyen)AmountChanges(%, YoY)(100 millionsof yen)Changes(%, YoY)

Individual insurance

294

83.0

14,79396.8

10,974

81.4

3,819

211.6

Individual annuities

7

73.2

205

70.9

214

71.1

(8)

—

Subtotal

301

82.7

14,99896.3

11,188

81.2

3,810

212.4

Group insurance

—

—

30

27.4

30

27.4

—

—

Group annuities

—

—

0

183.7

0

183.7

—

—

Total
Year ended March 31, 2022

Number of policies(Thousands)

New businessAmountChanges(%, YoY)(100 millionsof yen)AmountChanges(%, YoY)(100 millionsof yen)Net increase by
conversion
AmountChanges(%, YoY)(100 millionsof yen)Changes(%, YoY)

Individual insurance

344

117.0

16,001

108.2

12,201

111.2

3,800

99.5

Individual annuities

7

110.8

223

108.9

232

108.4

(8)

—

Subtotal

351

116.9

16,224108.2

12,433

111.1

3,791

99.5

Group insurance

—

—

158

520.0

158

520.0

—

—

Group annuities

—

—

9

8,980.1

98,980.1——

Notes: 1. Number of new policies is the sum of new business and policies after conversion.
Notes: 2. Amount of new policies for individual annuities, both new business and net increase by conversion, is equal to the funds to be held at
the time annuity payments are to commence and special riders for term insurance attached to individual annuities.
Notes: 3. Amount for group annuities is equal to the initial premium payment.

(iii) Surrendered and Lapsed Policies (Individual Insurance and Individual Annuities)
Year ended
March 31, 2021

Year ended
March 31, 2022

Changes(%, YoY)

Changes(%, YoY)

Amount of surrender andlapse (100 millions of yen)

10,195

83.4

11,256

110.4

Surrender and lapse ratio (%)

4.10(0.76)

4.55

0.45

Notes: 1. The amount of lapse is not offset by the amount of reinstatement which wasonce lapsed.
Notes: 2. The column of "Changes" of surrender and lapse ratio is increase-decrease
points over year.

1

Fukoku Mutual Life Insurance Company

(2) Annualized Premiums(i) Policies in Force(100 millions of yen, %)As of March 31, 2021

As of March 31, 2022

Changes(%, Pre-FYE)

Changes(%, Pre-FYE)

Individual insurance

2,665

99.0

2,638

99.0

Individual annuities

1,120

96.7

1,093

97.6

Total

3,785

98.3

3,731

98.6

1,143

100.7

1,154

101.0

Medical coverage and living benefits(ii) New Policies(100 millions of yen, %)Year ended March 31, 2021

Year ended March 31, 2022
Changes(%, YoY)

Changes(%, YoY)

Individual insurance

114

81.7

128

112.4

Individual annuities

5

71.5

6

108.4

120

81.1

135

112.2

60

80.3

70

115.4

Total
Medical coverage and living benefits

Notes: 1. Annualized premiums are calculated by using coefficients based on the premium payment method. (Forsingle premium contracts, the amount is calculated by dividing the premium by the coverage period.)
Notes: 2. Figures for medical coverage and living benefits represent portion of annualized premium corresponding
to the medical benefits (hospitalization benefits and surgery benefits, etc.), living benefits (nursing carebenefits, etc.) and premium waiver benefits, in which disability cause is excluded but causes such as
specific illness are included.
Notes: 3. New policies include net increase by conversion.

(3) Selected Items of Statements of Operations(100 millions of yen, %)Year ended March 31, 2021

Year ended March 31, 2022

Changes(%, YoY)

Changes(%, YoY)

Premium and other income

4,850

90.9

4,864

100.3

Investment income

2,066

106.0

1,943

94.0

Claims and other payments

4,154

94.6

4,160

100.2

Investment expenses

494

84.0

433

87.6

Ordinary profits

881

180.2

387

44.0

(4) Statements of Surplus(100 millions of yen, %)Year ended March 31, 2021

Year ended March 31, 2022

Changes(%, YoY)

Changes(%, YoY)

Unappropriated surplus

591

102.1

570

96.6

Reserve for dividends to policyholders

327

103.8

307

93.8

Net surplus

26

100.2

25

99.8

Unappropriated surplus carried forward

237

100.0

237

100.0

Note: Unappropriated surplus for the years ended March 31, 2021 and 2022 included reversal of voluntary surplus
reserve of ¥1 million and ¥1 million, respectively.

(5) Total Assets(100 millions of yen, %)As of March 31, 2021

As of March 31, 2022

Changes(%, Pre-FYE)

Total assets

71,579105.4

2Changes(%, Pre-FYE)

73,893

103.2

Fukoku Mutual Life Insurance Company

2. Investment Results of General Account Assets(1) Asset Composition(Millions of yen, %)As of March 31, 2021

As of March 31, 2022

AmountAmount% of total

291,190

Cash, deposits, and call loans

239

Monetary claims bought

4.1 %
0.0

% of total

202,459
80

2.8 %
0.0

25,2770.4

26,0700.4

5,857,001

83.0

6,173,529

84.8

Domestic bonds

2,779,477

39.4

2,884,480

39.6

Domestic stocks

786,886

11.2

768,954

10.6

Foreign securities

2,128,047

30.2

2,335,951

32.1

Foreign bonds

1,710,567

24.3

1,823,435

25.1

417,4795.9

512,516

7.0

162,590

2.3

184,143

2.5

568,091

8.1

553,305

7.6

Policy loans

50,7970.7

48,6290.7

Ordinary loans

517,293

7.3

504,675

6.9

Real estate

239,5453.4

241,164

3.3

Others

76,0001.1

82,725

1.1

Allowance for possible loan losses(4,386)(0.1)(2,515)(0.0)

7,052,960

100.0

7,276,821

100.0

2,421,279

34.3

2,629,067

36.1

Money held in trust
Securities

Foreign stocks and other securities
Other securities
Loans

Total
Foreign currency denominated assets

Note: The amount of real estate is equal to the amounts of land, buildings, and construction in progress.

(2) Changes (Increase/Decrease) in Assets(Millions of yen)

Year ended March 31, 2021

Cash, deposits, and call loans

Year ended March 31, 2022

(224,354)(88,730)

(29)

(158)

1,120

792

591,599

316,528

Domestic bonds

101,779

105,003

Domestic stocks

174,867(17,932)

Foreign securities

270,126

207,904

Foreign bonds

129,738

112,867

Foreign stocks and other securities

140,388

95,036

Monetary claims bought
Money held in trust
Securities

Other securities

44,82521,552

2,617(14,785)

Policy loans(4,541)(2,167)

Ordinary loans

7,159(12,617)

Real estate

24,240

1,618

Deferred tax assets(29,397)—

Others(16,687)

6,724

Allowance for possible loan losses(2,362)

1,870

Total

346,747

223,860

261,984

207,787

Loans

Foreign currency denominated assets

3

Fukoku Mutual Life Insurance Company

(3) Investment Income(Millions of yen)

Year ended March 31, 2021

Interest, dividends and other income

Year ended March 31, 2022

155,559

167,6095

2

131,735

140,247

Interest on loans

8,137

8,048

Income from real estate for rent

15,534

19,074

Other interest and dividends

146

237

Gains on money held in trust, net

1,127

817

Gains on trading securities, net

6,523

1,664

Gains on sales of securities

23,95913,920Gains on sales of domestic bonds

7,447

6,543

Gains on sales of domestic stocks

14,974

3,932

Gains on sales of foreign securities

1,400

3,444

Other gains on sales of securities

137—

Gains on redemption of securities, net—

65

Foreign exchange gains, net

—

1,617

Reversal of allowance for possible loan losses

—

1,867

Interest on deposits
Interest and dividends on securities

Other investment income
Total

170

381

187,341

187,944(4) Investment Expenses(Millions of yen)

Year ended March 31, 2021

Year ended March 31, 2022

Interest expenses

4,093

4,402

Losses on sales of securities

11,80915,060Losses on sales of domestic bonds

735

5,343

Losses on sales of domestic stocks

7,592

7,414

Losses on sales of foreign securities

3,451

2,302

Other losses on sales of securities

29

—

404

344

Losses on valuation of domestic bonds

65—

Losses on valuation of domestic stocks

281

302

Losses on valuation of foreign securities

57

42

Losses on derivative instruments, net

12,967

7,746

Foreign exchange losses, net

4,602

—

Provision of allowance for possible loan losses

2,369

—

Depreciation of real estate for rent and other assets

4,427

4,788

Other investment expenses

8,767

10,985

Total

49,44343,328Losses on valuation of securities(5) Net Investment Income(Millions of yen)

Year ended March 31, 2021

Net investment income

Year ended March 31, 2022

137,8984

144,616

Fukoku Mutual Life Insurance Company

(6) Other Information on Investments(i) Investment Yield by Asset Categories( %)Year ended March 31, 2021

Year ended March 31, 2022

Cash, deposits, and call loans

0.00

0.00

Monetary claims bought

1.11

1.84

Money held in trust

4.67

3.24

Securities

2.54

2.50

Domestic bonds

1.81

1.73

Domestic stocks

3.91

3.18

Foreign securities

3.06

3.16

Foreign bonds

2.65

2.55

Foreign stocks and other securities

4.96

5.74

1.08

1.61

0.83

1.40

Real estate

2.39

2.91

Total

2.11

2.18

2.87

3.13

Loans
Ordinary loans

Overseas investments

Notes: 1. Investment yield above are calculated by dividing the net investment income by the average daily balance ona book value basis.
Notes: 2. Overseas investments represent the total of foreign currency denominated assets and yen denominated assets.

(ii) Average Daily Balance(Millions of yen)

Year ended March 31, 2021

Year ended March 31, 2022

357,256

259,525254

223

24,15925,2785,118,459

5,309,118

Domestic bonds

2,685,341

2,722,369

Domestic stocks

416,990418,905

Foreign securities

1,890,731

2,021,019

Foreign bonds

1,557,603

1,637,884

333,128

383,134

565,568

567,015

512,224

517,341

230,765

242,6456,524,287

6,642,474

2,261,370

2,381,764

Cash, deposits, and call loans
Monetary claims bought
Money held in trust
Securities

Foreign stocks and other securities
Loans
Ordinary loans
Real estate
Total
Overseas investments

5

Fukoku Mutual Life Insurance Company

(iii) Net Valuation Gains/Losses on Trading Securities(Millions of yen)

As of March 31, 2021
As of March 31, 2022
Carrying value on the Net valuation gains/losses included Carrying value on the Net valuation gains/losses included
balance sheet
in the statement of operationsbalance sheet
in the statement of operations
Trading securities

53,7038,310

43,563

2,581

Note: The table above includes money held in trust for trading purpose.

(iv) Fair Value Information on Securities (other than trading securities)(Millions of yen)Held-to-maturity debt securities

As of March 31, 2021
Gains/Losses
Book value Fair value
Gains757,339863,820
106,481
106,481

As of March 31, 2022
Gains/Losses
Book value Fair value
LossesGains—
760,097
847,316
87,21887,218Losses—Domestic bonds

737,240

842,721

105,480

105,480—

737,795

824,774

86,97986,979—Foreign bonds

20,09821,098

1,000

1,000

—

22,302

22,541

238

238

—

Policy-reserve-matching bonds

873,677

989,433

115,755

120,379

4,623

—

—

—

—

—

Domestic bonds

873,677

989,433

115,755

120,379

4,623

—

—

—

—

—

Foreign bonds

—

—

—

—

—

—

—

—

—

—

Investments in subsidiaries and affiliates

—

—

—

—

—

—

—

—

—

—

Available-for-sale securities

3,462,146

4,095,801

633,654

656,049

22,394

4,625,982

5,288,571

662,589

733,325

70,736

Domestic bonds

1,106,729

1,168,558

61,82967,376

5,547

2,038,626

2,146,685

108,059

138,789

30,730

Domestic stocks

347,152

717,432

370,279

377,140

6,860

347,574

699,525

351,951

354,992

3,041

Foreign securities

1,898,343

2,068,561

170,217

179,4429,225

2,109,727

2,282,658

172,931

209,125

36,193Foreign bonds

1,557,529

1,661,043

103,513111,905

8,391

1,713,754

1,782,639

68,884102,110

33,225

Foreign stocks and other securities

340,813407,518

66,70467,537833

395,972

500,019

104,047

107,015

2,968

Other securities

109,921141,249

31,32732,089761

130,053

159,700

29,64730,417

770

Money held in trust

—

—

—

—

—

—

—

—

—

—

Monetary claims bought

—

—

—

—

—

—

—

—

—

—

Negotiable certificate of deposits

—

—

—

—

—

—

—

—

—

—

Others

—

—

—

—

—

—

—

—

—

—

Total

5,093,163

5,949,055

855,891

882,909

27,017

5,386,079

6,135,887

749,807820,544

70,736

Domestic bonds

2,717,647

3,000,714

283,066

293,236

10,1702,776,421

2,971,460

195,038

225,768

30,730

Domestic stocks

347,152

717,432

370,279

377,140

6,860

347,574

699,525

351,951

354,992

3,041

Foreign securities

1,918,441

2,089,659

171,218

180,443

9,225

2,132,029

2,305,200

173,170

209,364

36,193Foreign bonds

1,577,627

1,682,141

104,513112,905

8,391

1,736,056

1,805,180

69,123102,349

33,225

Foreign stocks and other securities

340,813407,518

66,70467,537833

395,972

500,019

104,047

107,015

2,968

Other securities

109,921141,249

31,32732,089761

130,053

159,700

29,64730,417

770

Money held in trust

—

—

—

—

—

—

—

—

—

—

Monetary claims bought

—

—

—

—

—

—

—

—

—

—

Negotiable certificate of deposits

—

—

—

—

—

—

—

—

—

—

Others

—

—

—

—

—

—

—

—

—

—

Notes: 1. The table above includes assets which are considered appropriate to deem as securities under the Financial Instruments and Exchange Law.
Notes: 2. The securities and investment partnerships without fair value are not included in the table above.

• Book value of securities and investment partnerships without fair value are as follows:(Millions of yen)

Investments in subsidiaries and affiliates
Available-for-sale securities
Domestic stocks
Foreign stocks
OthersTotal

As of March 31, 2021
64,78734,607
6,224

As of March 31, 2022
64,78737,973
6,198——

28,382
99,394

31,774
102,760

Note: In this table, domestic and overseas investment partnerships are included in “Others” within“Available-for-sale securities.” However, unrealized gains on available-for-sale securities
corresponding to these holdings by domestic and overseas investment partnerships (¥1,362 million
as of March 31, 2021 and ¥3,606 million as of March 31, 2022) are included in their balance sheet
carrying amounts.

6

Fukoku Mutual Life Insurance Company

(v) Fair Value Information on Money Held in Trust(Millions of yen)

As of March 31, 2021

Money held in trust

Carrying valueon the balance
sheet

Fair value

25,27725,277

As of March 31, 2022

Gains

LossesCarrying valueon the balance
sheet

—

—

26,070Gains/Losses—

Gains/Losses
Fair value

26,070—Gains

Losses——• Money held in trust for trading purpose(Millions of yen)

As of March 31, 2021
Net valuation gains/losses
included in the statementsof operations

Carrying valueon the balance sheet

Money held in trust fortrading purpose

As of March 31, 2022

24,277

Net valuation gains/losses
included in the statementsof operations

Carrying valueon the balance sheet

0

25,0700• Money held in trust classified as held-to-maturity, policy-reserve-matching and available-for-sale(Millions of yen)

As of March 31, 2021

As of March 31, 2022

Gains/Losses
Book value

Gains/Losses

Fair value

Book value
Gains

LossesFair value
Gains

LossesMoney held in trust for
held-to-maturity

—

—

—

—

—

—

—

—

—

—

Money held in trust forpolicy-reserve-matchi
ng

—

—

—

—

—

—

—

—

—

—

Money held in trust foravailable-for-sale

—

—

—

—

—

—

—

—

—

—

7

Fukoku Mutual Life Insurance Company

Reference: Fair Value Information on Derivative Instruments (General Account)(i) Gains and Losses on Derivatives(Millions of yen)

As of March 31, 2021

Interest-related Currency- related—

Hedge accounting applied

Stock- related

Bond- related

OthersTotal(37,644)———(37,644)

Hedge accounting not applied(280)(2,956)

(157)

—

—

(3,394)

Total

(280)

(40,600)

(157)

—

—

(41,039)

Interest- related Currency- related

Stock- related

Bond- related(63,528)———

As of March 31, 2022

Others

Total

Hedge accounting applied—

Hedge accounting not applied20(4,632)

(202)

—

—

(4,814)

Total

20(68,160)

(202)

－

—

(68,342)(63,528)

Note: Gains and losses from applying fair value hedge accounting (currency-related losses of ¥37,644 million as of March 31, 2021, andcurrency-related losses of ¥63,528 million as of March 31, 2022) included in gains and losses with hedge accounting applied, and gains
and losses with hedge accounting not applied are reported in the statements of operations.

(ii) Interest-related Transactions(Millions of yen)

As of March 31, 2021
Notional amount/contract value
Fair valueOver 1 year

Gains
(Losses)

As of March 31, 2022
Notional amount/contract value
Fair valueOver 1 year

Gains
(Losses)Over-the-counter transactions
Yen interest rate swaption contracts
Sold—

Receipt fixed, payment floating
[

[

—

— ]
—

Payment fixed, receipt floating

—
—

— [

—

— [

—

— ]
—

— ]

—
—

—

—

—

—

—

154

20

—

— ]

Bought—Receipt fixed, payment floating[
Payment fixed, receipt floating—— ]460,000

[

—
—

— [

120,000— ]150,000

292 ]

12

Total

(280) [
(280)

—

133 ]

30,00020

Note: Figures in [ ] are option premiums which are included in the balance sheet.

8

Fukoku Mutual Life Insurance Company

(iii) Currency-related Transactions(Millions of yen)

As of March 31, 2021
Notional amount/contract value
Fair valueOver 1 year

Over-the-counter transactions
Currency forward contracts
Sold
U.S. dollar
Australian dollar
Euro
Canadian dollar
Swedish krona
British pound

1,001,027
621,623
155,825
106,584
64,90034,37917,713——136,01288 ]
136,012
[
88 ]
—
[
—]

—

—
—]
203,072[172 ]
199,347
[
168 ]
3,725
[
3]

—

BoughtCurrency options
Sold
Call

— 1,041,246— 652,501— 159,088— 108,704—
68,428—34,262—
18,261[
U.S. dollar
Put
BoughtCall[
Put
U.S. dollar
Canadian dollar

Gains(Losses)(40,219) 1,005,205(30,878)
630,531(3,262)
151,512(2,120)110,689(3,527)76,539117
33,588
(548)
2,343

—

—

303

(215) [—

24,257
17 ]
24,257
17 ]
—
—]

—

—
—]
138,259(165) [
198 ]
138,259(162) [
198 ]
—
(3) [
—]

—

303

(215) [

—

— [

—

—

6

—

6
—
0

Total

— 1,072,835— 668,660— 167,031— 116,852—
82,160—35,719
—
2,410

—

—
—

As of March 31, 2022
Notional amount/contract value
Fair valueOver 1 year

— [

Gains
(Losses)(67,629)(38,129)(15,518)(6,163)(5,621)(2,130)
(66)

—

—

356

(339)

356

(339)

—

—

—

—

6

(191)

6

(191)

—

—

—
—

—
—
—

(40,600)(68,160)

Notes:1. Forward exchange rates are used for exchange rates as of March 31, 2022.
Notes:2. Figures in [ ] are option premiums which are included in the balance sheet.
Notes:3. Regarding assets and liabilities which are denominated in foreign currencies but have fixed settlement in yen under currency forward
contracts and are reported in yen amounts in the balance sheet, those currency forward contracts are excluded from the table above.

(iv) Stock-related Transactions(Millions of yen)

As of March 31, 2021
Notional amount/contract value
Fair valueOver 1 year

Exchange-traded transactions
Stock index option
Sold
Call
[
Put
[
Bought
Call
[
Put
[

10,400
24 ]
—
—]

—

—
—]
45,000
180 ]

—

17

Gains
(Losses)

7 [

—
—

— [

—

— [

—
15

Total

(164) [
(157)

As of March 31, 2022
Notional amount/contract value
Fair valueOver 1 year

—
—]
—
—]

—

—
—]
35,100
210 ]

—

Gains
(Losses)

—

—

—

—

—

—

9

(202)
(202)

—

—

Note: Figures in [ ] are option premiums which are included in the balance sheet.

(v) Bond-related Transactions

No ending balance as of March 31, 2021 and March 31, 2022.

9

Fukoku Mutual Life Insurance Company

Reference: Fair Value of Real Estate (Land and Leaseholds)(Millions of yen)

As of March 31, 2021
Carrying valueon the balance sheet

146,819

Fair value

294,946

As of March 31, 2022
Carrying valueon the balance sheet

Gains (Losses)

148,127

150,197

Fair value

Gains (Losses)

297,512147,314

Note: Fair value is based on the appraisal value by the real-estate appraiser, the appraisal value for property tax and the road rate.

10

Fukoku Mutual Life Insurance Company

3. Non-consolidated Balance Sheets
As ofMarch 31,
2021

As of
March 31,2022

159,431

160,149

Assets:Cash and deposits:
Cash(Millions of yen)
As of
As of
March 31,
March 31,
2021
2022

Liabilities:

155

166

Bank deposits

159,276

159,983

Call loans

136,000

48,000239

80

25,277

26,070

Policy reserves:

5,812,295

Reserve for outstanding claims

5,886,412

19,551

22,9855,729,511

5,800,015

63,232

63,411

87

87

Subordinated bonds

241,935

241,935

6,277,599

Other liabilities:

149,141

276,328

2,005,536

2,102,521

Cash received as collateral under
securities lending transactions

61,819160,928

Local government bonds

99,212

102,771

Corporate income tax payable

2,764

2,767

Corporate bonds

699,187

704,056

Accounts payable

7,272

7,282

Monetary claims bought
Money held in trust
Securities:
Government bonds

Stocks5,954,789

Policy reserve
Reserve for dividends to policyholders
Reinsurance payables

813,227

795,801

Accrued expenses

10,28011,438Foreign securities

2,175,012

2,388,284

Unearned income

367

419

Other securities

162,612

184,163

Deposits received

6,303

6,523

Loans:

568,091

553,305

Guarantee deposits received

13,887

13,970

Policy loans

50,797

48,629Derivatives

41,391

68,377

10

—

761

553

Ordinary loans

517,293504,675

Cash collateral received for financial
instruments

Tangible fixed assets:

244,487

245,405

Lease obligations

Land

146,816150,195

Asset retirement obligations

2,603

2,355

Buildings

92,63589,202

Suspense receipts

1,679

1,711

Lease assets

578

265

—

3,400

Construction in progress

93

1,767

Reserve for employees' retirement benefits

23,73524,850Reserve for claims and other payments

Other tangible fixed assets

4,362

3,974

Reserve for price fluctuation

172,797

176,670

Intangible fixed assets:

24,25627,821

Deferred tax liabilities

26,43025,061

Software

19,181

19,914

Deferred tax liabilities for land revaluation

14,184

14,1836,440,606

6,648,929

Lease assets
Other intangible fixed assets

686

498

4,388

7,407

Total liabilities
Net assets:

Agency receivables

10

15Foundation funds

12,00012,000

Reinsurance receivables

124

135

Accumulated foundation funds redeemed

116,000

116,000

Other assets:

49,07252,328Reserve for revaluation

Accounts receivable

6,974

5,392

Surplus:Prepaid expenses

3,339

3,202

Legal reserve for future losses

Accrued income

28,16831,840

Other surplus:

Deposits

2,250

1,834

Derivatives

112

112

126,748

127,222

3,271

3,370

123,477

123,852

Reserve for redemption of foundation
funds

2,400

4,800

Reserve for dividend allowances

20,00020,000352

35Cash collateral paid for financial
instruments

1,747

4,499

Accumulated fund for price fluctuation

41,00041,000

Suspense payments

3,005

1,871

Reserve for advanced depreciation ofreal estate for tax purpose

207

206

Rest of the other asset

3,234

3,653

Other reserves

547

912

(4,386)(2,515)Prepaid pension cost
Allowance for possible loan losses

767

767

59,102

57,078

Total foundation funds, surplus and others

254,860

255,334

Net unrealized gains (losses) on availablefor-sale securities, net of tax

458,287

480,860

Unappropriated surplus

Revaluation reserve for land, net of tax

Total assets

7,157,940

7,389,308

11

4,185

4,184

Total valuation and translation adjustments

462,473

485,044

Total net assets

717,333

740,379

7,157,940

7,389,308

Total liabilities and net assets

Fukoku Mutual Life Insurance Company

4. Non-consolidated Statements of Operations
Year ended March 31, 2021

Ordinary revenues:
Premium and other income:Premium income
Reinsurance income
Investment income:Interest, dividends and other income:Interest on deposits
Interest and dividends on securities
Interest on loans
Income from real estate for rent
Other interest and dividends
Gains on money held in trust, net
Gains on trading securities, net
Gains on sales of securities
Gains on redemption of securities, net
Foreign exchange gains, net
Reversal of allowance for possible loan losses
Other investment income
Gains on separate accounts, net
Other ordinary revenues:
Fund receipt from annuity rider
Proceeds from deferred insurance
Reversal of reserve for outstanding claims
Reversal of reserve for employees' retirement benefits
OthersTotal ordinary revenues
Ordinary expenses:
Claims and other payments:
ClaimsAnnuities
Benefits
Surrenders
Other payments
Reinsurance premiums
Provision of policy reserve and others:
Provision of reserve for outstanding claims
Provision of policy reserves
Provision of interest portion of reserve for dividends to policyholders
Investment expenses:
Interest expenses
Losses on sales of securities
Losses on valuation of securities
Losses on derivative instruments, net
Foreign exchange losses, net
Provision of allowance for possible loan losses
Depreciation of real estate for rent and other assets
Other investment expenses
Operating expenses
Other ordinary expenses:
Deferred annuity payments
Taxes
Depreciation
Provision of reserve for claims and other payments
Provision of reserve for employees' retirement benefits
OthersTotal ordinary expenses
Ordinary profits
Extraordinary gains:
Gains on disposal of fixed assets
Total extraordinary gains
Extraordinary losses:
Losses on disposal of fixed assets
Impairment losses
Provision of reserve for price fluctuation
OthersTotal extraordinary losses
Surplus before income taxes
Income taxes：
Current
Deferred
Total income taxes
Net surplus for the year

12

(Millions of yen)
Year ended March 31, 2022

485,011484,868
143
206,657
155,559
5
131,735
8,137
15,534
146
1,127
6,523
23,959———170
19,315
9,529
2,205
3,618
262
246
3,196
701,198

486,461486,302158
194,336
167,6092
140,247
8,048
19,074
237
817
1,664
13,920
65
1,617
1,867
381
6,391
8,922
2,704
2,938
—
—
3,279
689,719

415,436
77,539151,810
106,884
52,88826,083
231
34,545—34,532
13
49,443
4,093
11,809404
12,967
4,602
2,369
4,427
8,767
91,59922,057
3,944
7,304
9,739
—
—
1,069
613,083
88,115416,061
81,426
152,290
109,711
48,261
24,152
218
73,952
3,434
70,50413
43,328
4,402
15,060
344
7,746
－
－
4,788
10,98590,77926,845
3,353
7,472
10,657
3,400
750
1,212
650,967
38,752

133
133

10
10

801
198
50,051
1,059
52,11036,137

430
46
3,873
—
4,349
34,412

11,227(10,516)710
35,427

11,069(9,975)
1,093
33,319

Fukoku Mutual Life Insurance Company

Notes to the Non-consolidated Financial Statements
I. Presentation of the Non-consolidated Financial Statements
1. Basis of presentation
The accompanying non-consolidated financial statements have been prepared from the accounts maintained by Fukoku MutualLife Insurance Company (the “Company”) in accordance with the provisions set forth in the Insurance Business Act of Japanand its related rules and regulations and in conformity with accounting principles generally accepted in Japan, which are
different in certain respects from accounting principles generally accepted in countries and jurisdictions other than Japan.
In addition, the notes to the non-consolidated financial statements include information which is not required under accounting
principles generally accepted in Japan but is presented herein as additional information.
Amounts of less than one million yen have been rounded down. As a result, the totals do not add up.

II. Notes to the Non-consolidated Balance Sheets
1. (1) The valuation of securities, including cash and deposits and monetary claims bought which are equivalent to securities, andsecurities managed as trust assets in money held in trust, is as follows:i) Trading securities are stated at fair market value. Costs of their sales are determined by the moving average method.
ii) Held-to-maturity debt securities are stated at amortized cost under the straight-line method, cost being determined by themoving average method.
iii) Policy-reserve-matching bonds are stated at amortized cost under the straight-line method, cost being determined by themoving average method in accordance with “Temporary Treatment of Accounting and Auditing Concerning
Policy-reserve-matching Bonds in the Insurance Industry” (Industry Audit Committee Report No.21 issued by theJapanese Institute of Certified Public Accountants on November 16, 2000).
iv) Investments in subsidiaries and affiliates are stated at cost, cost being determined by the moving average method.
v) Available-for-sale securities are stated at fair market value based on the market prices at the end of the fiscal year. Costsof their sales are determined by the moving average method. Public and corporate bonds (including foreign bonds) withdifferences between their acquisition costs and fair values that are considered as adjustments of interest are stated atamortized cost (straight-line method) determined by the moving average method. However, stocks and other securities
without quoted market prices are stated at cost, as determined using the moving average method. Net unrealized gains orlosses on these available-for-sale securities, net of taxes, are recorded as a separate component of net assets.
(2) Derivative instruments are stated at fair market value.
(3) The Company revalued the land used in the operations based on the Act for Revaluation of Land (Act No.34 promulgatedon March 31, 1998). The difference between fair value and book value resulting from the revaluation, net of related taxes,
is recorded as revaluation reserve for land as a separate component of net assets and the related tax is recorded asdeferred tax liabilities for land revaluation.
• Date of revaluation: March 31, 2002
• Method of revaluation as prescribed for in Article 3 Paragraph 3 of the said Act:
Calculation is based on the appraisal value for property tax set forth in Article 2 item 3 of the Enforcement Ordinanceof the Act for Revaluation of Land (Government Ordinance No.119 promulgated on March 31, 1998) and the road rate
set forth in Article 2 item 4 of the said Ordinance with certain reasonable adjustments.
(4) Depreciation of tangible fixed assets is calculated by the following methods.
• Tangible fixed assets (excluding lease assets): Declining-balance method
However, buildings (excluding building attachments and structures acquired on or before March 31, 2016) acquiredon or after April 1, 1998 are depreciated using Straight-line method.
13

Fukoku Mutual Life Insurance Company

• Lease assets related to finance lease transactions that do not transfer ownership: Straight-line method over the leaseterm with no residual value.
Other tangible fixed assets acquired for ¥100,000 or more but less than ¥200,000 are depreciated equally over three years.
(5) Assets and liabilities denominated in foreign currencies, except for investments in subsidiaries and affiliates, aretranslated into Japanese yen at the effective exchange rate prevailing at the balance sheet date. Investments in subsidiaries
and affiliates are translated into Japanese yen at the exchange rate on the date of acquisition.
(6) Allowance for possible loan losses is provided in accordance with the Company’s standards of self-assessment andwrite-offs and reserves on credit quality:i) For the credits of borrowers who are legally bankrupt such as being in the proceedings of bankruptcy or civil
rehabilitation (hereinafter called “legally bankrupt borrowers”) and who are substantially bankrupt (hereinafter called“substantially bankrupt borrowers”), the Company provides the remaining amounts of credits after the direct write-off
described below and the deductions of the amount expected to be collected through the disposal of collateral or the
execution of guarantees.
ii) For the credits of borrowers who are not currently bankrupt but have a high possibility of bankruptcy (hereinafter
called “not currently bankrupt borrowers”), the Company provides the amounts deemed as necessary considering theborrowers’ ability to pay, within the amounts after deductions of the amounts expected to be collected through thedisposal of collateral or the execution of guarantees.
iii) For the credits of borrowers other than the above, the Company provides the amounts calculated by multiplying theborrowers’ balance by the actual ratio of bad debt losses on defaults during a certain past period.
All credits are assessed by the relevant departments in accordance with the Company’s standards of self-assessment on
credit quality. The results of the assessment are reviewed by the audit department, which is independent ofbusiness-related divisions. Subsequently, the allowance for possible loan losses is provided based on the results of theseassessments.
For the credits of legally bankrupt borrowers and substantially bankrupt borrowers, the amounts remaining after
deductions of collateral value or the amounts collectible through the execution of guarantees are written-off directly fromthe borrowers’ balances as the estimated uncollectible amounts. The amount written-off as of March 31, 2022 was ¥0
million.
(7) To ensure that benefits associated with COVID-19 infections contracted during the fiscal year ended March 31, 2022 canbe paid during the fiscal year ending March 31, 2023, the Company sets aside as a reserve for claims and other paymentsthat exceeds the reserve for outstanding claims included under the Company's estimated payments for the latter fiscal
year (calculated based on previous payment amounts).
(8) Reserve for employees' retirement benefits and prepaid pension cost are presented based on projected benefit obligations
and pension plan assets at the balance sheet date.
The Company uses the following methods for amortizing retirement benefit obligations and retirement benefit expenses:• Method for allocation of projected retirement benefits ................

Benefit formula basis• Amortization period of actuarial gains and losses.........................

10 years• Amortization period of prior service cost......................................

10 years(9) Reserve for price fluctuation is calculated in accordance with Article 115 of the Insurance Business Act.
(10) Hedge accounting is based on "Accounting Standards for Financial Instruments" (ASBJ Statement No. 10, July 4, 2019).
The Company applies a fair value hedge accounting as a hedge against the risk of foreign exchange fluctuation in relation
to bonds and others denominated in foreign currencies, and a designated hedge accounting (“Furiate shori”) for foreign
14

Fukoku Mutual Life Insurance Company

currency swaps as a hedge against the risk of foreign exchange fluctuation in relation to bonds denominated in foreign
currencies issued by the Company.
For assessing the effectiveness of hedge used, ratio analysis of comparing the fluctuations in the fair value or cash flowsof hedged items and hedging instruments is mainly applied.
(11) Accounting of unrecognized actuarial differences and unrecognized prior service costs related to employees’ retirement
benefits is different to the methods used for these items in the consolidated financial statements.
(12) The Company accounts for consumption taxes by the tax-exclusion method. The consumption taxes on certain assets,
which are not deductible from consumption taxes withheld and that are stipulated to be deferred under the Tax Act, aredeferred as prepaid expenses and amortized equally over five years. Consumption taxes other than deferred consumption
taxes are recognized as an expense when incurred.
(13) Initial premium incomes are recorded by the relevant amounts received when the premium incomes have been received
and the responsibilities on the insurance contract have been commenced, in principal.
Subsequent premium incomes are also recorded as the amount of payments that have been received.
Of premium incomes that have been received, the portion corresponding to the period that has yet to pass as of the end of
the fiscal year is accumulated as policy reserve in accordance with Article 116 of the Insurance Business Act and Article
69 Paragraph 1 Item 2 of the Enforcement Regulation of the Insurance Business Act.
Premium incomes associated with the acceptance of group annuities are recorded as amounts equivalent to the policy
reserve received when accepting the transfers of these group annuities.
(14) Claims and other payments (excluding reinsurance premiums) are recorded by the relevant amounts paid when the cause
for payment under the policy conditions is occurred and the calculated amounts are paid based on the policy conditions.
In accordance with Article 117 of the Insurance Business Act and Article 72 of the Enforcement Regulation of the
Insurance Business Act, reserve for outstanding claims are accumulated as for claims for which the Company has apayment due but has not paid, or for which the occurrence of cause for payment has not been reported but the Company
recognizes that insured payment has already occurred as of the end of the fiscal year.
Claims and other payments associated with the outgoing transfer of group annuities are recorded as amounts equivalent to
the policy reserve transferred when recognizing the transfers of these group annuities.
(15) Policy reserve of the Company is accumulated in accordance with the methods stated in the statement of calculation
procedures for Insurance Premiums and Policy Reserves (Article 4 Paragraph 2 Item 4 of the Insurance Business Act)
pursuant to Article 116 Paragraph 1 of the Insurance Business Act to prepare for the future performance of obligations
under the insurance contracts for which the insurer’s responsibilities have started as of the end of the fiscal year.
Premium reserves, one of the components of policy reserve, are calculated by the following method.
i) In regard to the policies subject to the standard policy reserve, the method as prescribed by the Commissioner ofFinancial Services Agency (Ministry of Finance Ordinance No.48, 1996) is applied.
ii) In regard to the policies not subject to the standard policy reserve, the net level premium method is applied.
In regard to the policy reserve accumulated pursuant to Article 69 Paragraphs 1,2, and 4 of the Enforcement Regulation of
the Insurance Business Act, when the actual assumptions for long-term future cash flows (such as assumed incidence rate
and assumed interest rate) deviate from those assumptions set in the “statement of calculation procedures for Insurance
Premiums and Policy Reserves” and policy reserve is considered to be possibly insufficient to cover the future
performance of obligations, additional policy reserve is required to accumulate in accordance with Article 69 Paragraph 5of the Enforcement Regulation of the Insurance Business Act. The following reserves have been established incompliance with this regulation.
･ Among individual annuity insurance policies with an assumed interest rate of 5.00% or higher, for policies that havebegun paying annuities (excluding wife’s annuity insurance additional rider), the Company has reduced the assumed
interest rate to 1.00% and funded additional policy reserves. As of March 31, 2022, the balance of these policy reserves
15

Fukoku Mutual Life Insurance Company

was ¥72,419 million.
･ Among whole life insurance policies with assumed interest rates of 5.00% or higher following the fiscal year ended
March 31, 2022, the Company has reduced assumed interest rates for policies with premiums that have been paid infull (excluding policies that have been converted into paid-up or extended policies, single premium policies, andpolicies for which premiums have been waived) to 1.00% and funded additional policy reserves of ¥107,284. The
establishment of these reserves rendered ¥1,589 million of additional policy reserves set aside at the conclusion of the
fiscal year ended March 31, 2021 unnecessary. Accordingly, the Company reversed this amount and transferred¥105,695 million (a higher amount) from contingency reserves to additional policy reserves. Consequently, theestablishment of these policy reserves has had no impact on provision of policy reserves, ordinary profits, and surplus
before income taxes.
･ The Company has also funded additional policy reserves for certain whole life insurance policies that include
distribution of surplus every five years, new cancer riders, highly advanced medical riders and advanced medical riders.
As of March 31, 2022, the balance of these policy reserves was ¥77 million.
Appointed actuaries, for each fiscal year, verify whether policy reserves have been reasonably accumulated in accordancewith Article 121 Paragraph 1 of the Insurance Business Act and Article 80 of the Enforcement Regulation of the
Insurance Business Act.
Contingency reserves, one of the components of policy reserve, are accumulated pursuant to Article 116 of the Insurance
Business Act and Article 69 Paragraph 1 Item 3 of the Enforcement Regulation of the Insurance Business Act to coverrisks that may accrue in the future in order to ensure performing future obligations under the insurance contracts.
(16) Depreciation of intangible fixed assets is calculated by the following methods.
• Software: Straight-line method over the estimated useful lives.
• Lease assets related to finance lease transactions that do not transfer ownership: Straight-line method over the leaseterm with no residual value.
(17) Of the bonds corresponding to the sub-groups of individual insurance and annuities which are set by insurance types andinvestment policies, the bonds that are held to match the duration of liabilities are classified as policy-reserve-matching
bonds in accordance with “Temporary Treatment of Accounting and Auditing Concerning Policy-reserve-matching Bonds
in Insurance Industry” (Industry Audit Committee Report No. 21 issued by the Japanese Institute of Certified Public
Accountants on November 16, 2000).
At the end of the fiscal year ended March 31, 2022, the Company eliminated all sub-groups, and policy-reserve-matching
bonds categorized for holding purposes were reclassified as available-for-sale securities. The Company made this change
following a review of its interest-rate risk management (conducted through strategic asset and liability matching) that was
conducted due to the Company's realization that under the prevailing environment of low interest rates in Japan,
continuing to hold bonds for the purpose of matching the duration of liabilities while securing investment incomecommensurate with assumed interest rates would be prohibitively difficult.
Due to this change, government bonds increased by ¥69,841 million, while local government bonds rose by ¥5,994
million, corporate bonds by ¥6,132 million, deferred tax liabilities by ¥22,951 million, and net unrealized gains (losses)
on available-for-sale securities, net of tax by ¥59,016 million. These changes had no impact in terms of profit and loss.

2. The Company began applying the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019;
hereinafter called “Accounting Standard for Fair Value Measurement”) from the beginning of the fiscal year. In accordance withthe transitional treatments prescribed in Paragraph 19 of the Accounting Standard for Fair Value Measurement and Paragraph44-2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019), new accounting policies
set forth by the Accounting Standard for Fair Value Measurement will be applied prospectively. The Company has observed nomaterial impact from this application of the Accounting Standard for Fair Value Measurement.
In addition, the Company has decided to provide notes regarding matters such as the breakdown of financial instruments by fair
16

Fukoku Mutual Life Insurance Company

value level in the financial instruments sections of notes to the non-consolidated balance sheets.

3. Asset management of the general accounts other than the separate accounts stipulated in Article 118 Paragraph 1 of the
Insurance Business Act is conducted on the principle of prudent and profitable investments, considering public and social
responsibilities of the insurance business. Based on this policy, the Company allocates the fund, securing its liquidity, from themedium-to-long term viewpoints. The Company is diversifying investments in assets such as foreign securities, stocks and realestates within the acceptable range of risks in order to enhance the profitability, although yen-denominated interest bearing
assets including debt securities such as Japanese government bonds and loans are the cores of the portfolios under the asset
liability management. Derivatives are mainly used to hedge the market risk regarding spot-priced assets and liabilities.
Major financial instruments including securities, loans and derivatives are exposed to market risk and credit risk.
The Company manages its asset management risk by establishing internal control systems including various rules pursuant to
the “Three Basic Rules related to Enterprise Risk Management” established by the Board of Directors. Specifically, theCompany eliminates excessive risk deviating from the basic principle and secures the safety of the assets by utilizing control
functions of the Financial and Investment Risk Management Department towards the asset management sections, monitoring
the status of market risk and credit risk periodically on a daily or monthly basis. In addition, the Company quantifies themarket risk and credit risk using value-at-risk (VaR) method in order to control the possible maximum losses which may
arise from the holding assets within a certain range of risk buffers.
The carrying amounts, fair values and their related differences of major financial assets and liabilities in the general accountas of March 31, 2022 were as follows:
Carrying amount

Monetary claims bought:
Claims treated as loans……................................................
Total monetary claims bought………………….................
Money held in trust:
Trading securities.........................……………...................
Total money held in trust.....................................................
Securities:
Trading securities............................……………................
Held-to-maturity debt securities..........................................
Available-for-sale securities....................……………........
Total securities.......................................……………..........
Loans:
Policy loans............................................…………..…........
Ordinary loans.........................................…………….........
Total loans...............................................………….............
Assets total...............................................…………….......…......
Subordinated bonds*1............................……………...…..........
Liabilities total…..........................................……………....…....
Derivative instruments*2:
Hedge accounting not applied...........……….……..............
Hedge accounting applied……............................................
Total derivative instruments.........……………..................

Fair value(Millions of yen)
Difference

¥80
80

¥81
81

¥0
0

25,07025,07025,07025,070——18,493760,097
5,288,571
6,067,162

18,493
847,316
5,288,571
6,154,381—
87,218—87,21848,629504,675

48,629521,484

553,305
6,645,619
241,935
241,935

570,114
6,749,647
245,074
245,074(0)16,80916,809104,028
3,139
3,139

(4,814)(63,528)¥(68,342)(4,814)(63,528)¥(68,342)——¥—*1 The fair value of derivative instruments that are currency swaps under designated hedge accounting is included in the fair valueof subordinated bonds because it is accounted for as an integral part of the subordinated bonds that are the hedge items.
*2 Assets and liabilities generated by derivative instruments are offset and presented net. Net liabilities in total are presented
in parentheses.
Notes: 1. Stocks without market prices, such as unlisted stocks, are not included in Securities of the above table. The amount ofthese stocks on the balance sheet as of March 31, 2022 was ¥73,986 million.
Notes: 2. In accordance with the transitional treatments prescribed in Paragraph 27 of the “Implementation Guidance on
Accounting Standard for Fair Value Measurement” (ASBJ Guidance No. 31, July 4, 2019), investments in partnerships
have not been included in Securities of the above table. As of March 31, 2022, the amount of investments in partnerships
included on the balance sheet was ¥32,380 million.
17
Fukoku Mutual Life Insurance Company

4. Matters concerning the breakdown of financial instruments by fair value level are as follows.
The fair values of financial instruments are classified into the following three levels according to the observability andmateriality of inputs used to measure fair value.
Fair Value Level 1: Fair values measured using (unadjusted) quoted prices in active markets for identical assets or liabilities
Fair Value Level 2: Fair values measured using directly or indirectly observable inputs other than Level 1 inputs
Fair Value Level 3: Fair values measured using material unobservable inputs
When multiple inputs with material impact are used to measure fair value, the resulting fair value is classified into the lowest fairvalue level into which any of these inputs can be categorized.
(1) Financial assets and liabilities with fair values recorded on the balance sheet as of March 31, 2022
(Millions of yen)Classification

Fair value
Level 2

Level 1

Level 3

Total

Money held in trust:
Trading securities........................…….....

¥—¥25,070¥—¥25,070

Total money held in trust..........................

—

25,070—25,070Foreign securities.................................

7,859

10,634—

18,493

Total trading securities…………….…

7,859

10,634—

18,493Government bonds……………….…...

1,374,059——

1,374,059

Local government bonds………….….

—

96,671—

96,671

Corporate bonds……………….….….

—

675,954—675,954

Stocks………………………………...

699,525——

699,525

Foreign securities…………………….

744,8121,129,151

28,1391,902,104

Other securities………………………

3,372

—

—

3,372

Total available-for-sale securities……

2,821,770

1,901,778

28,1394,751,688

Total securities........................…….....

2,829,629

1,912,412

28,1394,770,181

Assets total.....................………………..........

2,829,629

1,937,482

28,1394,795,251

Currency-related………………..............

—(68,160)—(68,160)

Interest-related………………………….

—

20

—

20

Stock-related……………………............

(202)

—

—

(202)

Total derivative instruments...….............

¥(202)¥(68,140)¥—¥(68,342)

Securities:
Trading securities:

Available-for-sale securities:*

Derivative instruments :* Assets and liabilities generated by derivative instruments are offset and presented net. Net liabilities in total are presented
in parentheses.
Note: In accordance with the transitional treatments prescribed in Paragraph 26 of the “Implementation Guidance on
Accounting Standard for Fair Value Measurement” (ASBJ Guidance No.31, July 4, 2019), investment trusts have notbeen included in the figures above.
As of March 31, 2022, the amount of investment trusts included on the balance sheet was ¥536,883 million.

18

Fukoku Mutual Life Insurance Company

(2) Financial assets and liabilities with fair values not recorded on the balance sheet as of March 31, 2022
(Millions of yen)Classification

Fair value
Level 2

Level 1

Level 3

Total

Monetary claims bought:
Claims treated as loans………..................

¥—

¥—

¥81

¥81

Total monetary claims bought….…….….

—

—

81

81

Government bonds……………….…...

796,339——

796,339

Local government bonds………..…….

—

7,824

—

7,824

Corporate bonds….…………….….….

—

20,610—20,610Foreign securities..................................

20,878

1,663—

22,541

Total held-to-maturity debt securities...

817,218

30,098—847,316

Total securities.............................…….

817,218

30,098—847,316

Policy loans.................................….........

——

48,62948,629Ordinary loans..........................................

——

521,484

521,484

Total loans................................…............

——

570,114570,114

Assets total.........................................…….......

817,218

30,098570,196

1,417,512

Subordinated bonds—

245,074—

245,074

Liabilities total..........………………….….......

¥—¥245,074¥—¥245,074

Securities:
Held-to-maturity debt securities:

Loans:(3) Explanation of valuation techniques and inputs used to measure fair valuei) Securities (including deposits and monetary claims bought which are treated as securities based on “AccountingStandards for Financial Instruments” [ASBJ Statement No.10, July 4, 2019])
The fair values of securities for which unadjusted quoted market prices in active markets are available (primarily
listed stocks and government bonds [including some foreign securities]) are classified as Fair Value Level 1.
Meanwhile, the fair values of securities for which quoted market prices are available, but are not available in active
markets, are classified as Fair Value Level 2 (This category primarily includes local government bonds and corporate
bonds [including some foreign securities]). When quoted market prices are not available for securities, prices
obtained from third parties (mainly from information vendors and financial institutions with which the Company
conducts business) and determined to have been measured in accordance with prescribed accounting standards areused to measure the fair values of these securities. If the inputs used to measure the fair value of a given security arematerial but unobservable, the resulting fair value is classified as Fair Value Level 3.
ii) Money held in trust
In principle, the fair values of securities managed as trust assets and classifed as money held in trust are measured
using the Company's prescribed method for determining the value of securities. These fair values are categorized as
Fair Value Level 2.
iii) Loans and monetary claims bought treated as loans
The fair values of policy loans are deemed to approximate book values, considering estimated repayment period andinterest rate conditions since their repayment deadlines have not been set up due to the characteristics that the loans
are limited to the amount of cash surrender values. Therefore, the book values are used as the fair values of policy
loans.
The fair values of floating interest rate loans among the ordinary loans and monetary claims bought treated as loans
approximate the book values because the market interest rates are reflected in future cash flows in a short period.
Therefore, the fair values of floating interest rate loans and monetary claims bought treated as loans are based on their
19

Fukoku Mutual Life Insurance Company

book values. The fair values of fixed interest rate loans are primarily measured by discounting the future cash flows
to the present values.
The fair values of loans from legally bankrupt borrowers, substantially bankrupt borrowers and not currently bankrupt
borrowers and monetary claims bought treated as loans are computed by deducting the amount of the allowance forpossible loan losses from the book values before direct write-offs.
If the impact of unobservable inputs used to measure the fair values of loans and monetary claims bought treated asloans is determined to be material, the resulting fair values are classified as Fair Value Level 3. Otherwise, they are
categorized as Fair Value Level 2.
iv) Subordinated bonds
The fair values of corporate bonds issued by the Company are classified as Fair Value Level 2 and are measured using
the same method applied to securities.
v) Derivative instruments
The fair values of derivative instruments for which unadjusted quoted market prices in active markets are available(primarily exchange-traded futures and options) are classified as Fair Value Level 1. However, most derivative
instruments are traded over the counter and have no quoted market prices. Accordingly, prices obtained from third
parties (mainly from information vendors and financial institutions with which the Company conducts business) anddetermined to have been measured in accordance with prescribed accounting standards are used to measure the fairvalues of these derivative instruments. Fair values of derivative instruments that were measured using only
observable inputs or with unobservable inputs considered to be immaterial are classified as Fair Value Level 2.
Meanwhile, fair values of derivative instruments that have been measured using material unobservable inputs are
categorized as Fair Value Level 3.
(4) Information concerning fair values of financial assets and liabilities that have been recorded on the balance sheet as ofMarch 31, 2022 and classified as Fair Value Level 3i) Quantitative information regarding material unobservable inputs
When measuring fair value, the Company does not adjust quoted prices obtained from third parties and does not makeestimates related to inputs that it cannot observe. Accordingly, quantitative information regarding material
unobservable inputs have been omitted.
ii) Reconciliation of balances at the beginning of the current fiscal year and balances as of March 31, 2022, andvaluation gains or losses recognized in the statements of operations for the fiscal year ended March 31, 2022.
(Millions of yen)
Securities,
Available-for-sale securities,
Foreign securities

Total

Balance at the beginning of the current fiscal year…..

¥29,312¥29,312

Gains or losses during the fiscal year….…….….…

(10)

(10)

Values recognized as gains or loses ……………

(10)

(10)

Changes in net unrealized gains or losses………....

(1,162)(1,162)

Balance at the end of the current fiscal year……….....

¥28,139¥28,139** These amounts are included in investment income and investment expenses in the non-consolidated
statements of operations for the fiscal year ended March 31, 2022.

iii) Explanation of the valuation process for fair value
The Company's asset management division is responsible for the formulation of policies and procedures related to themeasurement of fair value and the actual measurement of fair value. These fair values are subsequently checked by
the risk management department to ensure their appropriateness and compliance with relevant policies andprocedures.
The Company verifies the appropriateness of the fair values it measures using a variety of suitable methods, which
include comparing quoted market prices obtained from different third parties; confirming techniques and inputs
20

Fukoku Mutual Life Insurance Company

utilized for calculation; and further comparing measured fair values with the fair values of similar financial
instruments.
iv) Explanation of the impact on fair value in case of change in material unobservable inputs
When measuring fair value, the Company does not adjust quoted prices obtained from third parties and does not makeestimates related to inputs that it cannot observe. Accordingly, it has omitted information concerning impact on fairvalue stemming from changes in material unobservable inputs.

5. The Company holds investment and rental properties such as office buildings in Tokyo and other areas. The carrying amounts
and the fair values of investment and rental properties were ¥196,610 million and ¥328,744 million as of March 31, 2022,
respectively. The fair value is mainly based on the value calculated by the Company in accordance with real estate appraisal
standards which includes some adjustments using the reference prices.
The amount corresponding to asset retirement obligations included in the carrying amount of investment and rental properties
was ¥372 million as of March 31, 2022.

6. The amount of securities lent under lending agreements was ¥621,280 million as of March 31, 2022.

7. The total amount of claims against bankrupt and quasi-bankrupt obligors, claims with collection risk, delinquent loans past
three months or more, and restructured loans was ¥3,759 million as March 31, 2022. The details are as follows.
i) The balance of claims against bankrupt and quasi-bankrupt obligors was ¥143 million as of March 31, 2022.
Of which, the estimated uncollectible amount written-off was ¥0 million as of March 31, 2022.
Claims against bankrupt and quasi-bankrupt obligors are loans to borrowers who are subject to bankruptcy, corporate
reorganization or rehabilitation or other similar proceedings and other borrowers in serious financial difficulties.
ii) The balance of claims with collection risk was ¥1,999 million as of March 31, 2022.
Claims with collection risk are loans to obligors (other than bankrupt and quasi-bankrupt obligors) with deteriorated
financial condition and results of operations from which it is unlikely that the principal and interest on the loans will berecovered.
iii) There was no balance of delinquent loans past three months or more as of March 31, 2022.
Delinquent loans past three months or more are loans for which interest payments or repayments of principal aredelinquent for three months or more from the due date under the terms of the related loan agreements, excluding thoseloans classified as claims against bankrupt and quasi-bankrupt obligors, claims with collection risk.
iv) The balance of restructured loans was ¥1,616 million as of March 31, 2022.
Restructured loans are loans for which certain concessions favorable to borrowers, such as interest reduction or
exemption, rescheduling of due date for repayments of principal or interest payment, waiver of claim or other terms, havebeen negotiated for the purpose of assisting and supporting the borrowers in the restructuring of their business. This
category excludes loans classified as claims against bankrupt and quasi-bankrupt obligors, claims with collection risk,
and delinquent loans past three months or more.

8. Accumulated depreciation of tangible fixed assets were ¥178,381 million as of March 31, 2022.

9. Total assets in separate accounts provided for in Article 118 of the Insurance Business Act were ¥112,487 million as of March
31, 2022. The amounts of separate account liabilities were the same as separate account assets.

10. The total amounts of receivables from/payables to subsidiaries were ¥2,334 million and ¥2,714 million as of March 31, 2022,
respectively.

21

Fukoku Mutual Life Insurance Company

11. Deferred tax assets and deferred tax liabilities as of March 31, 2022 were ¥170,333 million and ¥190,417 million, respectively.
Valuation allowance for deferred tax assets was ¥4,976 million.
Major components of deferred tax assets were ¥98,854 million of policy reserves, ¥49,467 million of reserve for pricefluctuation and ¥12,184 million of reserve for employees' retirement benefits as of March 31, 2022.
Major component of deferred tax liabilities was ¥185,335 million of net unrealized gains on available-for-sale securities as ofMarch 31, 2022.
The statutory tax rate and the actual effective tax rate for the year ended March 31, 2022 were 28.0% and 3.2%, respectively.
The difference between the statutory tax rate and the actual effective tax rate was attributable mainly to-25.0% of reserve for dividends to policyholders.

12. Changes in reserve for dividends to policyholders for the year ended March 31, 2022 were as follows:(Millions of yen)

Balance at the beginning of the fiscal year…......................................................

¥ 63,232

Transfer from surplus in the previous fiscal year................................................

32,744

Dividend payments to policyholders during the fiscal year…..………………..

(32,580)

Increase in interest....................................................……………………...........

13

Balance at the end of the fiscal year....................................................................

¥ 63,411

13. The amount of stocks of subsidiaries was ¥64,787 million as of March 31, 2022.

14. Assets pledged as collateral as of March 31, 2022 were ¥225,740 million of securities.
Secured debts as of March 31, 2022, were ¥166,881 million.
These amounts include ¥150,826 million of investments in securities deposited and ¥160,928 million of cash received ascollateral under securities lending transactions secured by cash as of March 31, 2022.

15. Reserve for outstanding claims for the reinsurance contracts provided in accordance with Article 71 Paragraph 1 of the
Enforcement Regulation of the Insurance Business Act (hereinafter called “reserve for outstanding claims for ceded
reinsurance”) was ¥0 million as of March 31, 2022.
Policy reserve for the reinsurance contracts provided in accordance with Article 71 Paragraph 1 of the Enforcement
Regulation of the Insurance Business Act (hereinafter called “policy reserve for ceded reinsurance”) was ¥23 million as ofMarch 31, 2022.

16. The total amounts of adjustment items for redemption of foundation funds and appropriation of net surplus defined in Article
30 Paragraph 2 of the Enforcement Regulation of the Insurance Business Act was ¥485,157 million as of March 31, 2022.

17. There were unused commitment line agreements under which the Company is the lender of ¥11,492 million as of March
31, 2022.

18. Repayments of subordinated bonds are subordinated to other obligations.

19. The future contribution to the Life Insurance Policyholders Protection Corporation of Japan under Article 259 of the Insurance
Business Act was estimated at ¥8,181 million as of March 31, 2022.
The contribution is recognized as operating expenses when contributed.
22

Fukoku Mutual Life Insurance Company

20. Matters Related to Employees’ Retirement Benefits as of March 31, 2022
(1) Overview of Employees’ Retirement Benefit Plan
As for a defined benefit plan for office-based employees, the Company has a defined benefit corporate pension plan andretirement lump-sum payments. As for a defined contribution plan for these employees, the Company also has a defined
contribution pension plan.
As for a defined benefit plan for sales employees, the Company has retirement lump-sum payments.
The Company places a retirement benefit trust in relation to the retirement lump-sum grant plan for sales employees.
The simplified method for calculating retirement benefit obligation is applied to a portion of the Company’s retirement
lump-sum grant plans.
(2) Defined Benefit Plani) Reconciliation of beginning and end of balance of retirement benefit obligation(Millions of yen)

Retirement benefit obligation at the beginning of the fiscal year……………
Service cost………………………………………………………………..
Interest cost………………………………………………………………..
Actuarial differences occurred during the fiscal year……………………..
Retirement benefit payments………………………………………………
Retirement benefit obligation at the end of the fiscal year…………………..

¥ 90,576
3,657
541
47
(4,178)¥ 90,644ii) Reconciliation of beginning and end of balance of pension plan assets(Millions of yen)

Pension plan assets at the beginning of the fiscal year………………………
Expected return on pension plan assets…………….……………………..
Actuarial differences occurred during the fiscal year……………………..
Contributions by the employer…………………………………………….
Retirement benefit payments………………………………………………
Pension plan assets at the end of the fiscal year…………………..………….

¥ 62,244
1,202
956
1,088
(1,605)¥ 63,886

iii) Reconciliation of retirement benefit obligation and pension plan assets with reserve for employees’
retirement benefits and prepaid pension cost presented on the non-consolidated balance sheet(Millions of yen)a. Funded plan retirement benefit obligation…………………………………
b. Pension plan assets……………………………….…………….…………..
c. (a + b)…………………………………………………………….………...
d. Unfunded plan retirement benefit obligation……………………………....
e. Unrecognized actuarial differences…………….……..…………………
f. Unrecognized prior service cost……………………………………..…..
g. Net amount of liabilities and assets presented
on the non-consolidated balance sheet………………………….………...
h. Reserve for employees’ retirement benefits………………..……….……...
i. Prepaid pension cost……………………………………………….………..
j. Net amount of liabilities and assets presented
on the non-consolidated balance sheet………..…………………….…….

¥ 78,793(63,886)
14,906
11,850(2,774)(45)
23,937
24,850(912)¥ 23,937

iv) Breakdown of retirement benefit gains and losses(Millions of yen)

Service cost…………………………………………..…………….…………
Interest cost………………………………..……….………….….…………..
Expected return on pension plan assets………………………….….………...
Amortization of actuarial differences………………………………………....
Amortization of prior service costs……………………………………….…..

¥ 3,657541(1,202)
1,428(13)Retirement benefit expenses related to defined benefit plan………….…..….

¥ 4,41023

Fukoku Mutual Life Insurance Company

v) Breakdown of pension plan assets
The breakdown of asset categories as a percentage of total pension plan assets were as follows:
Domestic stocks……………………………..………..….……………..……
42.2%
Life insurance general account…………..….………………...……………..
31.1%
Foreign stocks……………………………………………………..………....
10.3%
Domestic bonds…………………….………………………………………...
9.6%
Assets under joint management……………………………...…………..…..
3.7%
Foreign bonds………………………………………………...…………..…..
3.1%
Total……….…………………………………………………………….....…
100.0%
Within the total of pension assets, 35.7% of this amount is accounted for by the retirement benefit trust established inrelation to the retirement lump-sum payments plan for sales employees.
vi) Method for setting the expected long-term rate of return
To set the expected long-term rate of return on pension plan assets, the Company takes into account the present andfuture allocation of pension plan assets, and the present and expected future long-term rate of return on a variety of assetsthat makes up the pension assets.
vii) Underlying actuarial assumptions
Main underlying actuarial assumptions as of March 31, 2022, were as follows:
Discount rate…………………………………..….….…………………..…
Expected long-term rate of return on pension plan assets
Defined Benefit Plan….…………………………………………………...
Retirement benefit trust…………………………………..……..………....

0.6%
3.0%
0.0%

(3) Defined Contribution Plan
The required contribution amount by the Company to the defined contribution plan was ¥222 million as ofMarch 31, 2022.

24

Fukoku Mutual Life Insurance Company

III. Notes to the Non-consolidated Statements of Operations
1. The total amounts of revenues and expenses in connection with subsidiaries were ¥1,326 million and ¥8,687 million for theyear ended March 31, 2022.

2. The details of gains on sales of securities for the year ended March 31, 2022 were as follows:(Millions of yen)Domestic bonds.................................................................................................
Domestic stocks and others...............................................................................
Foreign securities..............................................................................................

¥ 6,543
3,932
3,444

3. The details of losses on sales of securities for the year ended March 31, 2022 were as follows:(Millions of yen)Domestic bonds…………….............................................................................
Domestic stocks and others....................................................….......................
Foreign securities..............................................................................................

¥ 5,343
7,414
2,302

4. The details of losses on valuation of securities for the year ended March 31, 2022 were as follows:(Millions of yen)Domestic stocks and others………..................................................................
Foreign securities.......................................................................…………......

¥ 302
42

5. For the year ended March 31, 2022, in calculating the provision of reserve for outstanding claims, a reversal of reserves foroutstanding claims reinsured of ¥3 million was added. In calculating the provision of policy reserves, a reversal of reserves forpolicy reserves reinsured of ¥7 million was added.

6. The details of gains on trading securities for the year ended March 31, 2022 were as follows:(Millions of yen)Interest, dividends and other income…………………….................................

¥ 753

Gains on sales of trading securities…………………………….…….………..

0

Losses on redemption of trading securities……….……………….…………..

(1,671)

Gains on valuation of trading securities………………………….…..………..

2,581

7. Gains on money held in trust for the year ended March 31, 2022 included valuation gains of ¥0 million.

8. Losses on derivative instruments for the year ended March 31, 2022 included valuation losses of ¥1,419 million.

25

Fukoku Mutual Life Insurance Company

5. Breakdown of Ordinary Profits (Fundamental Profit)(Millions of yen)

Year ended
March 31, 2021

Fundamental profit
Capital gains
Gains on money held in trust, net
Gains on trading securities, net
Gains on sales of securities
Gains on derivative instruments, net
Foreign exchange gains, net
Other capital gains
Capital losses
Losses on money held in trust, net
Losses on trading securities, net
Losses on sales of securities
Losses on valuation of securities
Losses on derivative instruments, net
Foreign exchange losses, net
Other capital losses
Net capital gains (losses)
Fundamental profit plus net capital gains (losses)
Non-recurring gains
Reinsurance income
Reversal of contingency reserve
Reversal of specific allowance for possible loan losses
Others
Non-recurring losses
Reinsurance premiums
Provision for contingency reserve
Provision of specific allowance for possible loan losses
Provision of allowance for specified overseas loans
Write-off of loans
Others
Non-recurring gains (losses)
Ordinary profits

A

B
A+B

C
A+B+C

84,351
29,844
1,049
4,836
23,959———29,784——
11,809404
12,9674,602—
6084,411
27,887———27,88724,183—
14,857
1,997
—
—
7,328
3,703
88,115

Year ended
March 31, 2022

85,817
17,113664
910
13,920—1,617—
23,151——
15,060
344
7,746
—
—
(6,038)79,77876,780—74,413
777
1,589
117,807—————
117,807(41,026)
38,752

Notes: 1. The following amounts in respect of gains on money held in trust have been excluded from capital gains / losses and included infundamental profit due to their income nature (being interest and dividend income): ¥78 million in respect of the year ended
March 31, 2021 and ¥153 million in respect of the year ended March 31, 2022.
Notes: 2. The following amounts in respect of gains on trading securities have been excluded from capital gains / losses and included infundamental profit due to their income nature (being interest and dividend income): ¥1,687 million in respect of the year ended
March 31, 2021 and ¥753 million in respect of the year ended March 31, 2022.
Notes: 3. Other non-recurring gains for the fiscal year ended March 31, 2021 include the following:• ¥27,887 million in reversals of additional policy reserves established in connection with individual insurance during the fiscal
year ended March 31, 2020 or earlier in response to reviews conducted by valuation actuaries
Notes: 4. Other non-recurring gains for the fiscal year ended March 31, 2022 include the following:• ¥1,589 million in reversals of additional policy reserves established in connection with individual insurance during the fiscal
year ended March 31, 2020 or earlier in response to reviews conducted by valuation actuaries
Notes: 5. Other non-recurring losses for the fiscal year ended March 31, 2021 include the following:• ¥7,304 million in additional policy reserves established in connection with individual insurance policies for which annuity
payments had begun• ¥24 million in additional policy reserves established in connection with third sector insurance following reviews conducted byvaluation actuaries
Notes: 6. Other non-recurring losses for the fiscal year ended March 31, 2022 include the following:• ¥7,081 million in additional policy reserves established in connection with individual insurance policies for which annuity
payments had begun• ¥107,284 million in additional policy reserves established in connection with individual whole life insurance policies forwhich premiums had been fully paid
• ¥41 million in additional policy reserves established in connection with third sector insurance following reviews conducted byvaluation actuaries• ¥3,400 million provision of reserve for claims and other payments

26

Fukoku Mutual Life Insurance Company

6. Non-consolidated Statements of Changes in Net Assets[For the year ended March 31, 2021](Millions of yen)Foundation funds, surplus and others
Surplus
Other surplus

Foundation
funds

Balance at the beginning of the fiscal year

12,000

Accumulated
foundation Reserve for Legal reserve
Reserve forReserve forfunds
revaluation
advanced
for future redemption of Reserve for Accumulated
redeemed
dividend fund for price depreciation oflossesfoundation
allowances
fluctuation
real estate forfunds
tax purpose

116,000

112

—

3,176

20,00041,000209

Total
surplus

Total foundation
funds, surplus
and others

57,901

123,054251,166(31,547)(31,547)(31,547)

(95)

—

—

(102)

(102)

(102)

35,42735,42735,427(2,400)

—

—

1

—

—

(83)

(83)

(83)

Other
reserves

Unappropriatedsurplus

767

Changes in the fiscal year
Additions to reserve for dividends topolicyholders

95

Additions to legal reserve for future losses
Payment of interest on foundation funds
Net surplus for the fiscal year
Additions to reserve for redemption offoundation funds

2,400

Reversal of reserve for advanced
depreciation of real estate for tax purpose(1)

Reversal of revaluation reserve for land,
net of tax
Net changes, excluding foundation funds,
surplus and others
Total changes in the fiscal year
Balance at the end of the fiscal year

—

—

—

95

2,400

—

—

(1)

—

1,200

3,694

3,694

12,000116,000

112

3,271

2,400

20,00041,000207

767

59,102

126,748

254,860

Valuation and translation adjustments
Net unrealized
gains (losses)
Total
Revaluation
on availablevaluation andreserve forfor-saletranslation
land, net of tax
securities, net
adjustmentsof taxBalance at the beginning of the fiscal year

284,752

4,102

288,855

Total
net ssets

540,021

Changes in the fiscal year
Additions to reserve for dividends topolicyholders(31,547)

Additions to legal reserve for future losses—

Payment of interest on foundation funds(102)
35,427

Net surplus for the fiscal year
Additions to reserve for redemption offoundation funds—

Reversal of reserve for advanced
depreciation of real estate for tax purpose—

Reversal of revaluation reserve for land,
net of tax(83)

Net changes, excluding foundation funds,
surplus and others

173,534

83

173,617

173,617

Total changes in the fiscal year

173,534

83

173,617

177,312

Balance at the end of the fiscal year

458,287

4,185

462,473

717,333

27

Fukoku Mutual Life Insurance Company

[For the year ended March 31, 2022](Millions of yen)Foundation funds, surplus and others
Surplus
Other surplus

Foundation
funds

Balance at the beginning of the fiscal year

12,000

Accumulated
foundation Reserve for Legal reserve
Reserve forReserve forfunds
revaluation
advanced
for future redemption of Reserve for Accumulated
redeemed
dividend fund for price depreciation oflossesfoundation
allowances
fluctuation
real estate forfunds
tax purpose

116,000

112

3,271

2,400

20,00041,000207

Total
surplus

Total foundation
funds, surplus
and others

Other
reserves

Unappropriatedsurplus767

59,102

126,748

254,860(32,744)(32,744)(32,744)

(99)

—

—

(102)

(102)

(102)

33,31933,31933,319(2,400)

—

—

1

—

—

1

1

1

Changes in the fiscal year
Additions to reserve for dividends topolicyholders
Additions to legal reserve for future losses

99

Payment of interest on foundation funds
Net surplus for the fiscal year
Additions to reserve for redemption offoundation funds

2,400

Reversal of reserve for advanced
depreciation of real estate for tax purpose(1)

Reversal of revaluation reserve for land,
net of tax
Net changes, excluding foundation funds,
surplus and others
Total changes in the fiscal year
Balance at the end of the fiscal year

—

—

—

99

2,400

—

—

(1)

—

(2,024)473

473

12,000116,000

112

3,370

4,800

20,00041,000206

767

57,078127,222

255,334

Valuation and translation adjustments
Net unrealized
gains (losses)
Total
Revaluation
on availablevaluation andreserve forfor-saletranslation
land, net of tax
securities, net
adjustmentsof taxBalance at the beginning of the fiscal year

458,287

4,185

462,473

Total
net ssets

717,333

Changes in the fiscal year
Additions to reserve for dividends topolicyholders(32,744)

Additions to legal reserve for future losses—

Payment of interest on foundation funds(102)

Net surplus for the fiscal year

33,319Additions to reserve for redemption offoundation funds—

Reversal of reserve for advanced
depreciation of real estate for tax purpose—

Reversal of revaluation reserve for land,
net of tax

1

Net changes, excluding foundation funds,
surplus and others

22,572(1)

22,571

22,571

Total changes in the fiscal year

22,572(1)

22,571

23,045

Balance at the end of the fiscal year

480,860

4,184

485,044740,379

28

Fukoku Mutual Life Insurance Company

7. Non-consolidated Statements of Surplus(Millions of yen)

Year ended March 31, 2021

Year ended March 31, 2022

59,102

57,078

Reversal of voluntary surplus reserve11

Reversal of reserve for advanced depreciation of realestate for tax purpose

1

1

Total

59,10357,079Appropriation of surplus

35,34533,321

Reserve for dividends to policyholders

32,74430,726

Net surplus

2,601

2,595

Legal reserve for future losses

99

93

Interest payment for foundation funds

102

102

Voluntary surplus reserve

2,400

2,400

Reserve for redemption of foundation funds

2,400

2,400

23,75823,758Unappropriated surplus

Unappropriated surplus carried forward

Note: Net surplus is calculated by deducting reserve for dividends to policyholders from the sum of unappropriated surplus and reversal ofvoluntary surplus reserve.

29

Fukoku Mutual Life Insurance Company

8. Disclosed Claims Based on Insurance Business Act(Millions of yen)

As of March 31, 2021

Claims against bankrupt and quasi-bankrupt obligors

As of March 31, 2022

159

143

2,515

1,999

Delinquent loans past three months or more——

Restructured loans

529

1,616

3,204
[0.31%]

3,759[0.32%]

Claims against normal obligors

1,034,137

1,175,569

Total

1,037,341

1,179,328

Claims with collection risk

Subtotal[Percentage of total]

Notes: 1. Claims against bankrupt and quasi-bankrupt obligors are loans to borrowers who are subject to bankruptcy,
corporate reorganization or rehabilitation or other similar proceedings and other borrowers in serious
financial difficulties.
Notes: 2. Claims with collection risk are loans to obligors (other than claims against bankrupt and quasi-bankrupt
obligors) with deteriorated financial condition and results of operations from which it is unlikely that the
principal and interest on the loans will be recovered.
Notes: 3. Delinquent loans past three months or more are loans for which interest payments or repayments of principal
are delinquent for three months or more from the due date under the terms of the related loan agreements,
excluding those loans classified as claims against bankrupt and quasi-bankrupt obligors, claims withcollection risk.
Notes: 4. Restructured loans are loans for which certain concessions favorable to borrowers, such as interest reduction
or exemption, rescheduling of due date for repayments of principal or interest payment, waiver of claim orother terms, have been negotiated for the purpose of assisting and supporting the borrowers in the
restructuring of their business. This category excludes loans classified as claims against bankrupt andquasi-bankrupt obligors, claims with collection risk, and delinquent loans past three months or more.
Notes: 5. Claims against normal obligors are all other loans.

30

Fukoku Mutual Life Insurance Company

9. Solvency Margin Ratio(Millions of yen)

As ofMarch 31, 2021

As ofMarch 31, 2022

1,847,290

1,917,896

Foundation funds and surplus

219,495

221,320

Reserve for price fluctuation

172,797

176,670

Contingency reserve229,872

155,458

1,911

820

(Net unrealized gains (losses) on securities (before tax)
and deferred hedge gains (losses) (before tax)) × 90%

571,515

599,576

Net unrealized gains on real estate × 85%

141,522

140,830

Excess amount of policy reserve based on full-time Zillmer method

274,189

386,741

Qualifying subordinated debt

241,935

241,935——

Deductible items(46,783)(46,783)

Others40,836

41,327

292,826

310,783

Total solvency margin(A)

General allowance for possible loan losses

The amount of "excess amount of policy reserve based on full-time Zillmer method" and"qualifying subordinated debt" excluded from the calculation of solvency margin

Total amount of risk √(𝑅1 + 𝑅8 )2 + (𝑅2 + 𝑅3 + 𝑅7 )2 + 𝑅4

(B)

Insurance risk

R1

22,33921,810

3rd sector insurance risk

R8

9,892

9,963

Assumed investment yield risk

R229,804

22,182

Minimum guarantee risk

R7

—

—

Investment risk

R3

254,865

280,252

Business risk

R4

6,338

6,684

1,261.6%

1,234.2%

Solvency margin ratio
(A)
× 100
(1/2) × (B)Notes: 1. Above figures are calculated based on the provisions of Articles 86 and 87 of the Enforcement Regulation of the Insurance BusinessAct and Ministry of Finance Notification No. 50, 1996.
Notes: 2. "Deductible items" represent the capital increase to the subsidiary, Fukokushinrai Life Insurance Co., Ltd.
Notes: 3. "Minimum guarantee risk" is calculated by standard method.

31

Fukoku Mutual Life Insurance Company

10. Status of Separate Account(1) Separate Account Assets by Products(Millions of yen)

As of March 31, 2021

As of March 31, 2022

AmountAmountIndividual variable insurance——

Individual variable annuities

27

25

Group annuities

104,952

112,462

Total

104,979

112,487(2) Individual Variable Insurance (Separate Account)
The Company has not sold the individual variable insurance.

(3) Individual Variable Annuities (Separate Account)(i) Policies in Force(Millions of yen except number of policies)

As of March 31, 2021
Number ofpolicies

As of March 31, 2022

AmountNumber ofpolicies

AmountIndividual variable annuities

8

20

7

18

Total

8

20

7

18

(ii) Breakdown of Separate Account Assets for Individual Variable Annuities(Millions of yen)

As of March 31, 2021
AmountAs of March 31, 2022

Percentage

AmountPercentage

Cash, deposits, call loans

4

16.3%

4

18.3%

Securities

22

83.7%

20

81.7%

Domestic bonds

—

—

—

—

Domestic stocks

—

—

—

—

Foreign securities

—

—

—

—

Foreign bonds

—

—

—

—

Foreign stocks and other securities

—

—

—

—

22

83.7%

20

81.7%

Loans

—

—

—

—

Others————Allowance for possible loan losses

—

—

—

—

Total

27

100.0%

25

100.0%

Other securities

32

Fukoku Mutual Life Insurance Company

(iii) Investment Income and Expenses of Separate Account for Individual Variable Annuities(Millions of yen)

Year ended March 31, 2021

Year ended March 31, 2022

AmountAmountInterest, dividends and other income

00Gains on sales of securities——

Gains on redemption of securities——

Gains on valuation of securities

98Foreign exchange gains, net——

Gains on derivative instruments——

Other investment income——

Losses on sales of securities——

Losses on redemption of securities——

Losses on valuation of securities

59Foreign exchange losses, net——

Losses on derivative instruments——

Other investment expenses——

Net investment income

40(iv) Fair Value Information on Securities in Separate Account for Individual Variable Annuities• Net Valuation Gains/Losses on Trading Securities(Millions of yen)

As of March 31, 2021

As of March 31, 2022

Net valuation
Net valuation
Carrying value on gains/losses included in Carrying value on gains/losses included in
the balance sheet
the statements ofthe balance sheet
the statements ofoperations
operations

Trading securities

22

4

20

(0)

Note: The Company had no balances of money held in trust and derivative instruments.

33

Fukoku Mutual Life Insurance Company

Reference: Fair Value Information on Securities (Total of General Account and Separate Account)
Net Valuation Gains/Losses on Trading Securities(Millions of yen)
As of March 31, 2021
Carrying value on thebalance sheet
Trading securities

As of March 31, 2022

Net valuation gains/losses includedin the statement of operations

151,491

Carrying value on thebalance sheet

23,542

Net valuation gains/losses includedin the statement of operations

147,633

4,388

Note: The table above includes money held in trust for trading purpose.

Fair Value Information on Securities (other than trading securities)(Millions of yen)
As of March 31, 2021

As of March 31, 2022

Gains/Losses

Book value Fair value

Gains

LossesBook value Fair value

Gains/Losses
Gains

Losses

Held-to-maturity debt securities

757,339863,820

106,481

106,481—760,097

847,316

87,21887,218—Domestic bonds

737,240

842,721

105,480

105,480—

737,795

824,774

86,97986,979—Foreign bonds

20,09821,098

1,000

1,000

—

22,302

22,541

238

238

—

Policy-reserve-matching bonds

873,677

989,433

115,755

120,379

4,623

—

—

—

—

—

Domestic bonds

873,677

989,433

115,755

120,379

4,623

—

—

—

—

—

Foreign bonds

—

—

—

—

—

—

—

—

—

—

Investments in subsidiaries and affiliates

—

—

—

—

—

—

—

—

—

—

Available-for-sale securities

3,462,146

4,095,801

633,654

656,049

22,394

4,625,982

5,288,571

662,589

733,325

70,736

Domestic bonds

1,106,729

1,168,558

61,82967,376

5,547

2,038,626

2,146,685

108,059

138,789

30,730

Domestic stocks

347,152

717,432

370,279

377,140

6,860

347,574

699,525

351,951

354,992

3,041

Foreign securities

1,898,343

2,068,561

170,217

179,4429,225

2,109,727

2,282,658

172,931

209,125

36,193Foreign bonds

1,557,529

1,661,043

103,513111,905

8,391

1,713,754

1,782,639

68,884102,110

33,225

Foreign stocks and other securities

340,813407,518

66,70467,537833

395,972

500,019

104,047

107,015

2,968

Other securities

109,921141,249

31,32732,089761

130,053

159,700

29,64730,417

770

Money held in trust

—

—

—

—

—

—

—

—

—

—

Monetary claims bought

—

—

—

—

—

—

—

—

—

—

Negotiable certificate of deposits

—

—

—

—

—

—

—

—

—

—

Others

—

—

—

—

—

—

—

—

—

—

Total

5,093,163

5,949,055

855,891

882,909

27,017

5,386,079

6,135,887

749,807820,544

70,736

Domestic bonds

2,717,647

3,000,714

283,066

293,236

10,1702,776,421

2,971,460

195,038

225,768

30,730

Domestic stocks

347,152

717,432

370,279

377,140

6,860

347,574

699,525

351,951

354,992

3,041

Foreign securities

1,918,441

2,089,659

171,218

180,443

9,225

2,132,029

2,305,200

173,170

209,364

36,193Foreign bonds

1,577,627

1,682,141

104,513112,905

8,391

1,736,056

1,805,180

69,123102,349

33,225

Foreign stocks and other securities

340,813407,518

66,70467,537833

395,972

500,019

104,047

107,015

2,968

Other securities

109,921141,249

31,32732,089761

130,053

159,700

29,64730,417

770

Money held in trust

—

—

—

—

—

—

—

—

—

—

Monetary claims bought

—

—

—

—

—

—

—

—

—

—

Negotiable certificate of deposits

—

—

—

—

—

—

—

—

—

—

Others

—

—

—

—

—

—

—

—

—

—

Notes: 1. The table above includes assets which are considered appropriate to deem as securities under the Financial Instruments and Exchange Law.
Notes: 2. The securities and investment partnerships without fair value are not included in the table above.

[Held-to-maturity Debt Securities]
As of March 31, 2021
Carrying value on
Fair value
Differences
the balance sheet
Securities whose fair value exceeds the carrying valueon the balance sheet(Millions of yen)
As of March 31, 2022
Carrying value on
Fair value
Differences
the balance sheet

757,339863,820

106,481760,097

847,316

87,218Domestic bonds

737,240

842,721

105,480

737,795

824,774

86,979Foreign bonds

20,09821,0981,000

22,302

22,541

238

—

—

—

—

—

—

Domestic bonds

—

—

—

—

—

—

Foreign bonds

—

—

—

—

—

—

Securities whose fair value does not exceed thecarrying value on the balance sheet

34

Fukoku Mutual Life Insurance Company

[Policy-reserve-matching Bonds](Millions of yen)
As of March 31, 2021
Carrying value on
the balance sheet
Bonds whose fair value exceeds the carrying valueon the balance sheet
Domestic bonds
Foreign bonds
Bonds whose fair value does not exceed the carrying
value on the balance sheet
Domestic bonds
Foreign bonds

As of March 31, 2022

Fair value

Differences

768,085

888,464

120,379

768,085

888,464——

105,591

Carrying value on
the balance sheet

Fair value

Differences

—

—

—

120,379

—

—

—

—

—

—

—

100,968(4,623)———

105,591

100,968(4,623)

—

—

—

—

—

—

—

—

—

[Available-for-sale Securities](Millions of yen)
As of March 31, 2021

As of March 31, 2022

Book value

Carrying value on
the balance sheet

Differences

Book value

Carrying value on
the balance sheet

Differences

2,940,450

3,596,499

656,049

3,271,278

4,004,603

733,325

Domestic bonds

886,068

953,445

67,376

1,411,343

1,550,132

138,789

Domestic stocks

306,727

683,867

377,140

310,630

665,623354,992

Foreign securities

1,662,254

1,841,697

179,442

1,443,319

1,652,444

209,125

Foreign bonds

1,334,993

1,446,899

111,905

1,091,898

1,194,009

102,110Foreign stocks

327,260

394,798

67,537351,420

458,435

107,015

85,399117,488

32,089105,985

136,40230,417

Money held in trust

—

—

—

—

—

—

Monetary claims bought

—

—

—

—

—

—

Negotiable certificate of deposits

—

—

—

—

—

—

Others

—

—

—

—

—

—

521,696499,301(22,394)

1,354,704

1,283,967(70,736)

Domestic bonds

220,660

215,113(5,547)627,283

596,553(30,730)

Domestic stocks

40,42433,564(6,860)36,94333,902(3,041)

Foreign securities

236,088

226,863(9,225)

666,408630,214(36,193)

Foreign bonds

222,535

214,143(8,391)

621,855

588,629(33,225)

Foreign stocks

13,553

12,719(833)

44,552

41,584(2,968)24,522

23,760(761)

24,06823,297(770)

Money held in trust

—

—

—

—

—

—

Monetary claims bought

—

—

—

—

—

—

Negotiable certificate of deposits

—

—

—

—

—

—

Others

—

—

—

—

—

—

Securities whose carrying value on the balance
sheet exceeds the book value

Other securities

Securities whose carrying value on the balance
sheet does not exceed the book value

Other securities• Book value of securities and investment partnerships without fair value are as follows:(Millions of yen)
As of March 31, 2021

As of March 31, 2022

Investments in subsidiaries and affiliates

64,78764,787Available-for-sale securities

34,60737,973

Domestic stocks

6,224

6,198

Foreign stocks——

28,382

31,774

99,394

102,760

OthersTotal

Note: In this table, domestic and overseas investment partnerships are included in “Others” within“Available-for-sale securities.” However, unrealized gains on available-for-sale securities
corresponding to these holdings by domestic and overseas investment partnerships (¥1,362
million as of March 31, 2021 and ¥3,606 million as of March 31, 2022) are included in theirbalance sheet carrying amounts.

35

Fukoku Mutual Life Insurance Company

Reference: Fair Value Information on Derivative Instruments (Total of General Account and Separate Account)(i) Gains and Losses on Derivatives(Millions of yen)Interest- related

Currency- related

Stock- related

Bond- related

Others—(37,644)———(37,644)

Hedge accounting not applied(280)(2,956)

(157)

—

—

(3,394)

Total

(280)

(40,600)

(157)

—

—

(41,039)

Interest- related

Currency- related

Stock- related

Bond- related

OthersHedge accounting applied—(63,528)———(63,528)

Hedge accounting not applied20(4,632)

(202)

—

—

(4,814)

Total

20(68,160)

(202)

—

—

(68,342)

As of March 31, 2021

Hedge accounting applied

As of March 31, 2022

Total

Total

Note: Gains and losses from applying fair value hedge accounting (currency-related losses of ¥37,644 million as of March 31, 2021, andcurrency-related losses of ¥63,528 million as of March 31, 2022) included in gains and losses with hedge accounting applied, and gains
and losses with hedge accounting not applied are reported in the statements of operations.

(ii) Hedge Accounting not Applied[Interest-related Transactions](Millions of yen)

As of March 31, 2021
Notional amount/
Fair value
contract valueOver 1 year

Gains
(Losses)

As of March 31, 2022
Notional amount/
Fair value
contract valueOver 1 year

Gains
(Losses)Over-the-counter transactions
Yen interest rate swaption contracts
Sold—

Receipt fixed, payment floating
[

— ]
—

Payment fixed, receipt floating
[

—

—
—

— [

—

— ]

— ]
—

—

— [

—
—

—

—

—

—

—

154

20

—

— ]

Bought—Receipt fixed, payment floating[
Payment fixed, receipt floating— ]460,000

[

—

—
—

— [

120,000292 ]— ]150,000

12Total(280) [
(280)

—

133 ]

30,00020

Note: Figures in [ ] are option premiums which are included in the balance sheet.

36

Fukoku Mutual Life Insurance Company

[Currency-related Transactions](Millions of yen)

As of March 31, 2021
Notional amount/contract value
Fair valueOver 1 year
Over-the-counter transactions
Currency forward contracts
Sold
U.S. dollar
Canadian dollar
Australian dollar
Euro
British pound

As of March 31, 2022
Notional amount/contract value
Fair valueOver 1 year

Gains
(Losses)

Gains(Losses)

68,787
38,778
13,975
5,440
1,477
9,115

—
—
—
—
—
—

71,36240,22814,913
5,530
1,558
9,130

(2,575)(1,450)
(938)
(90)
(81)
(15)

60,73940,866
12,759
5,530
1,583
－

—
—
—
—
—
—

64,841
43,505
13,700
5,993
1,642
—

(4,101)(2,639)
(941)
(463)
(58)
—

—

—

—

—

—

—

—

—

—
(215) [

24,257
17 ]
24,257
17 ]

—

303

356

(339)

[

136,01288 ]
136,012
88 ]

356

(339)

—
— ]

—

—
— ]

—

[

—

—

—
— ]
203,072172 ]
199,347
168 ]
3,725
3 ]

—

—
— ]
138,259
198 ]
138,259
198 ]
—
— ]

—
—

—

6

(191)

6

(191)

—

—

BoughtCurrency options
Sold
Call
[
U.S. dollar
Put
BoughtCall[
Put[
U.S. dollar[
Canadian dollar
[

—
303

(215) [

—

—

[

—

—

[

—
6

(165) [—
6(162) [

—
0

Total

(3) [

—

—
—
—

(2,956)(4,632)

Notes: 1. Forward exchange rates are used for exchange rates as of March 31, 2022.
Notes: 2. Figures in [ ] are option premiums which are included in the balance sheet.

[Stock-related Transactions](Millions of yen)

As of March 31, 2021
Notional amount/contract value
Fair valueOver 1 year
Exchange-traded transactions
Stock index options
Sold
Call
[
Put
[
Bought
Call
[
Put
[

10,400
24 ]
—
— ]

—

—
— ]
45,000
180 ]

—

17

As of March 31, 2022
Notional amount/
Fair value
contract valueOver 1 year

Gains
(Losses)

7

[

—
—

—

[

—

—

[

—
15

Total

(164) [
(157)

—
— ]
—
— ]

—

—
— ]
35,100
210 ]

—

Gains
(Losses)

—

—

—

—

—

—

9

(202)
(202)

—

—

Note: Figures in [ ] are option premiums which are included in the balance sheet.

[Bond-related Transactions]
No ending balance as of March 31, 2021 and March 31, 2022.

37

Fukoku Mutual Life Insurance Company

(iii) Hedge Accounting Applied[Interest-related Transactions]
No ending balance as of March 31, 2021 and March 31, 2022.
[Currency-related Transactions](Millions of yen)

Method ofhedge
accounting

Hedging instruments
Currency forward contracts
Sold
U.S. dollar

Fair value
hedge
methodAustralian dollar

As of March 31, 2021
As of March 31, 2022
Notional amount/
Notional amount/contract value
contract value
Hedged items
Fair value Hedged items
Fair valueOver 1 year
Over 1 year
Foreign
Foreigncurrency932,239
944,465— 969,884 currency— 1,007,994
denominateddenominated582,845589,665— 612,273— 625,155
bonds
bonds
150,384
145,982— 153,557— 161,038

Euro

105,106—

107,145

109,105—

115,210

Canadian dollar

50,925—53,514

63,779—68,460Swedish krona

34,379—34,26233,588—35,719British pound

8,598

—

9,131

2,343

—

2,410

—

—

—

—

—

—

BoughtTotal

Notes:1. Forward exchange rates are used for exchange rates as of March 31, 2022.
Notes:2. Regarding assets and liabilities which are denominated in foreign currencies but have fixed settlement in yen under currency
forward contracts and are reported in yen amounts in the balance sheet, those currency forward contracts are excluded from thetable above.

[Stock-related Transactions]
No ending balance as of March 31, 2021 and March 31, 2022.
[Bond-related Transactions]
No ending balance as of March 31, 2021 and March 31, 2022.

38

Fukoku Mutual Life Insurance Company

11. Status of the Company, Subsidiaries and Affiliates(1) Selected Financial Data
(100 million of yen)

Year ended
March 31, 2021

Year ended
March 31, 2022

Ordinary revenues

9,241

8,578

Ordinary profits

900

405

Net surplus attributable to the parent company

361

339

2,129

565

As of March 31, 2021

As of March 31, 2022

88,034

89,8691,303.9%

1,274.3%

Comprehensive income

Total assets
Solvency margin ratio(2) Scope of Consolidation and Application of Equity Method
Number of consolidated subsidiaries: 6
Number of unconsolidated subsidiaries accounted for under the equity method: 0
Number of affiliates accounted for under the equity method: 0

39

Fukoku Mutual Life Insurance Company

(3) Consolidated Balance Sheets(Millions of yen)
As of
As of
March 31, 2021 March 31, 2022

Assets:

As of
As of
March 31, 2021 March 31, 2022

Liabilities:

Cash and deposits

325,854

323,128

Policy reserves:

7,418,526

7,447,853

Call loans

136,000

48,000Reserve for outstanding claims

23,71327,719239

80

7,331,271

7,356,399

25,277

26,070Reserve for dividends topolicyholders

63,232

63,411

7,417,165

7,697,988

Reserve for dividends topolicyholders (subsidiary)

308

322

Loans

571,420556,577

Agency payables

112

165

Tangible fixed assets:

244,823

245,765

Reinsurance payables

103

104

Land

146,816150,195

Subordinated bonds

241,935

241,935

Buildings

92,77389,379Other liabilities

156,292

281,058

Lease assets

618

298

Reserve for claims and otherpayments—

3,432

Construction in progress

93

1,767

Net defined benefit liabilities

28,762

27,677

Other tangible fixed assets

4,521

4,125

Reserve for price fluctuation

183,520

187,692

Intangible fixed assets:

30,35530,609Deferred tax liabilities

25,85725,188

Software

19,877

19,657

Deferred tax liabilities for land
revaluation

14,184

14,183

Lease assets

6,015

3,486

Total liabilities

8,069,294

8,229,290

Other intangible fixed assets

4,462

7,466

Net assets:00Foundation funds

12,00012,000170

175

Accumulated foundation funds
redeemed

116,000

116,000

55,44758,397

Reserve for revaluation

112

112

Net defined benefit assets

339

822

Consolidated surplus

131,699

132,765

Deferred tax assets

732

1,831

259,811

260,877(4,386)(2,516)465,855

486,644

Revaluation reserve for land,
net of tax

4,185

4,184

Foreign currency translation
adjustment

(571)

(312)

Accumulated remeasurementsof defined benefit plans(3,703)(2,030)Total accumulated othercomprehensive income

465,765

488,486

Non-controlling interests

8,568

8,276

734,145757,640

8,803,440

8,986,931

Monetary claims bought
Money held in trust
Securities

Agency receivables
Reinsurance receivables
Other assets

Allowance for possible loan losses

Policy reserve

Total foundation funds, surplus
and others
Net unrealized gains (losses) on
available- for-sale securities,
net of tax

Total net assets
Total assets

8,803,440

8,986,931

40

Total liabilities and net assets

Fukoku Mutual Life Insurance Company

(4) Consolidated Statements of Operations and Comprehensive Income[Consolidated Statements of Operations](Millions of yen)

Ordinary revenues:
Premium and other income
Investment income
Interest, dividends and other income
Gains on money held in trust, net
Gains on trading securities, net
Gains on sales of securities
Gains on redemption of securities, net
Foreign exchange gains, net
Reversal of allowance for possible loan losses
Other investment income
Gains on separate accounts, net
Other ordinary revenues
Total ordinary revenues
Ordinary expenses:
Claims and other payments
ClaimsAnnuities
Benefits
Surrenders
Other payments
Provision of policy reserve and others:
Provision of reserve for outstanding claims
Provision of policy reserves
Provision of interest portion of reserve for dividends to policyholders
Provision of interest portion of reserve for dividends to policyholders (subsidiary)
Investment expenses
Interest expenses
Losses on sales of securities
Losses on valuation of securities
Losses on derivative instruments, net
Foreign exchange losses, net
Provision of allowance for possible loan losses
Depreciation of real estate for rent and other assets
Other investment expenses
Operating expenses
Other ordinary expenses
Total ordinary expenses
Ordinary profits
Extraordinary gains:
Gains on disposal of fixed assets
Total extraordinary gains
Extraordinary losses:
Losses on disposal of fixed assets
Impairment losses
Provision of reserve for price fluctuation
OthersTotal extraordinary losses
Provision of reserve for dividends to policyholders (subsidiary)
Surplus before income taxes
Income taxes:
Current
Deferred
Total income taxes
Net surplus
Net surplus (loss) attributable to non-controlling interests
Net surplus attributable to the parent company

41

Year ended
March 31, 2021

Year ended
March 31, 2022

584,794
229,442
175,540
1,127
6,523
26,764———170
19,315
109,905
924,142

632,055
215,080
185,514817
1,664
16,760
65
1,616
1,867
381
6,391
10,762857,898

657,932
85,657352,581
116,736
76,283
26,673
106
92
—
13
0
48,142
4,113
11,809404
12,967
4,604
2,369
4,427
7,444
99,99727,923
834,101
90,040613,582
91,523309,762
116,426
71,221
24,64829,147
4,006
25,12713
041,9104,417
15,060
344
7,746
—
—
4,788
9,553
99,60733,132
817,379
40,519

133
133

11
11

801
198
50,357
1,059
52,417
168
37,588

431
46
4,171
—
4,650
195
35,685

11,950(10,603)
1,346
36,241
125
36,116

11,945(10,247)
1,698
33,98674
33,911

Fukoku Mutual Life Insurance Company

(4) Consolidated Statements of Operations and Comprehensive Income (Continued)[Consolidated Statements of Comprehensive Income](Millions of yen)

Year ended
March 31, 2021

Year ended
March 31, 2022

Net surplus

36,241

33,986

Other comprehensive income:

176,717

22,514

Net unrealized gains (losses) on available-for-sale securities, net of tax

172,797

20,581

(91)

259

4,011

1,673

Comprehensive income:

212,959

56,500Comprehensive income attributable to the parent company

212,91056,63348(132)

Foreign currency translation adjustments
Remeasurements of defined benefit plan, net of tax

Comprehensive income attributable to non-controlling interests

42

Fukoku Mutual Life Insurance Company

(5) Consolidated Statements of Cash Flows(Millions of yen)

Cash flows from operating activities:
Surplus before income taxes
Depreciation of real estate for rent and other assets
Depreciation
Impairment losses
Increase (decrease) in reserve for outstanding claims
Increase (decrease) in policy reserve
Provision of interest portion of reserve for dividends to policyholders
Provision of interest portion of reserve for dividends to policyholders (subsidiary)
Provision of reserve for dividends to policyholders (subsidiary)
Increase (decrease) in allowance for possible loan losses
Increase (decrease) in reserve for claims and other payments
Increase (decrease) in net defined benefit liabilities
Increase (decrease) in reserve for price fluctuation
Interest, dividends and other income
Losses (gains) on securities, net
Interest expenses
Foreign exchange losses (gains), net
Losses (gains) on tangible fixed assets, net
Decrease (increase) in agency receivable
Decrease (increase) in reinsurance receivable
Decrease (increase) in other assets except from investing and financing activities
Increase (decrease) in agency payable
Increase (decrease) in reinsurance payable
Increase (decrease) in other liabilities except from investing and financing activities
OthersSubtotalInterest, dividends and other income received
Interest expenses paid
Dividends to policyholders paid
Dividends to policyholders paid (subsidiary)Corporate income tax (paid) refunded
Net cash provided by (used in) operating activities [a]Cash flows from investing activities:
Net decrease (increase) in deposits
Proceeds from sales and redemption of monetary claims bought
Increase in money held in trust
Decrease in money held in trust
Payments for purchase of securities
Proceeds from sales and redemption of securities
Payments for additions to loans
Proceeds from collections of loans
Proceeds from and payments for settlements of derivatives, net
Increase (decrease) in cash received as collateral under securities lending transactions
OthersSubtotal [b][a + b]
Payments for purchase of tangible fixed assets
Proceeds from sales of tangible fixed assets
Payments for purchase of intangible fixed assets
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Proceeds from issuance of subordinated bonds
Payment of interest on foundation funds
Dividends paid to non-controlling interests
Payments for lease obligations
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the fiscal year
Cash and cash equivalents at the end of the fiscal year

43

Year ended
March 31, 2021

Year ended
March 31, 2022

37,588
4,427
13,542
198
92(98,999)
13
0
168
2,362
—
(365)
50,357(175,540)(28,549)
4,113
4,604
590
(0)
(45)
(540)
(2)
0
82
17,629(168,270)
178,058(3,933)(29,252)(188)(14,932)(38,518)

35,685
4,788
14,52946
4,006
25,12713
0
195(1,870)
3,432
755
4,171
(185,514)(2,548)4,417(1,616)
386
0
(5)
2,589
53
0
2,185
17,933(71,236)
182,614(4,388)(32,580)(181)(11,931)
62,296(4,753)29(1,500)1,500(839,487)
742,811(96,899)
87,839(31,354)(6,047)(7,463)(155,325)(193,844)(33,165)387(8,218)(196,321)

2,003
158
(2,310)2,310(768,599)
618,119(78,096)
86,729(76,466)
99,108(8,672)(125,716)(63,420)(9,512)
109(11,808)(146,928)

50,000(102)(3)(3,533)46,361(205)(188,684)
644,507455,823

—
(102)
(159)
(3,710)(3,972)(219)(88,823)455,823
366,999

Fukoku Mutual Life Insurance Company

(6) Consolidated Statements of Changes in Net Assets[For the year ended March 31, 2021](Millions of yen)Foundation funds, surplus and others
AccumulatedFoundation funds foundation funds
redeemedReserve forrevaluation

Consolidated
surplus

Total foundation
funds, surplus andothers112

127,315

255,427

Additions to reserve for dividends topolicyholders(31,547)(31,547)

Payment of interest on foundation funds

(102)

(102)

36,116

36,116(83)(83)

Balance at the beginning of the fiscal year

12,000116,000

Changes in the fiscal year

Net surplus attributable to the parent
company for the fiscal year
Reversal of revaluation reserve forland, net of tax
Net changes, excluding foundation
funds, surplus and others
Total changes in the fiscal year
Balance at the end of the fiscal year

—

—

—

4,383

4,383

12,000116,000

112

131,699

259,811

Accumulated other comprehensive income
Net unrealized
Accumulated
Revaluation Foreign currency
Total accumulated Non-controlling Total net assets
gains (losses) on
remeasurementsinterests
reserve for land,translation
other comprehensive
available- for-saleof defined
net of tax
adjustments
incomesecurities, net of tax
benefit plans
Balance at the beginning of the fiscal year

292,980

4,102

(480)

(7,714)

288,8888,523

552,839

Changes in the fiscal year
Additions to reserve for dividends topolicyholders(31,547)

Payment of interest on foundation funds(102)

Net surplus attributable to the parent
company for the fiscal year

36,116

Reversal of revaluation reserve forland, net of tax(83)

Net changes, excluding foundation
funds, surplus and others

172,874

83

(91)

4,011

176,87745

176,923

Total changes in the fiscal year

172,874

83

(91)

4,011

176,87745

181,306

Balance at the end of the fiscal year

465,855

4,185

(571)

(3,703)465,7658,568

734,145

44

Fukoku Mutual Life Insurance Company

[For the year ended March 31, 2022](Millions of yen)Foundation funds, surplus and others
AccumulatedFoundation funds foundation funds
redeemedReserve forrevaluation

Consolidated
surplus

Total foundation
funds, surplus andothers112

131,699

259,811Additions to reserve for dividends topolicyholders(32,744)(32,744)

Payment of interest on foundation funds

(102)

(102)

33,911

33,911

1

1

Balance at the beginning of the fiscal year

12,000116,000

Changes in the fiscal year

Net surplus attributable to the parent
company for the fiscal year
Reversal of revaluation reserve forland, net of tax
Net changes, excluding foundation
funds, surplus and others
Total changes in the fiscal year
Balance at the end of the fiscal year

—

—

—

1,066

1,066

12,000116,000

112

132,765

260,877

Accumulated other comprehensive income
Net unrealized
Accumulated
Revaluation Foreign currency
Total accumulated Non-controlling Total net assets
gains (losses) on
remeasurementsinterests
reserve for land,translation
other comprehensive
available- for-saleof defined
net of tax
adjustments
incomesecurities, net of tax
benefit plans
Balance at the beginning of the fiscal year

465,855

4,185

(571)

(3,703)465,7658,568

734,145

Changes in the fiscal year
Additions to reserve for dividends topolicyholders(32,744)

Payment of interest on foundation funds(102)

Net surplus attributable to the parent
company for the fiscal year

33,911

Reversal of revaluation reserve forland, net of tax

1

Net changes, excluding foundation
funds, surplus and others

20,789

(1)

259

1,673

22,720(292)

22,428

Total changes in the fiscal year

20,789

(1)

259

1,673

22,720(292)

23,494

Balance at the end of the fiscal year

486,644

4,184

(312)

(2,030)488,486

8,276

757,640

45

Fukoku Mutual Life Insurance Company

Notes to the Consolidated Financial Statements
I. Presentation of the Consolidated Financial Statements
1. Basis of Presentation
The accompanying consolidated financial statements have been prepared from the accounts maintained by Fukoku MutualLife Insurance Company (the “Company”) and its consolidated subsidiaries in accordance with the provisions set forth in the
Insurance Business Act of Japan and its related rules and regulations and in conformity with accounting principles generally
accepted in Japan, which are different in certain respects from accounting principles generally accepted in countries andjurisdictions other than Japan.
In addition, the notes to the consolidated financial statements include information which is not required under accounting
principles generally accepted in Japan but is presented herein as additional information.
Amounts of less than one million yen have been rounded down. As a result, the totals do not add up.

2. Principles of Consolidation(1) Scope of Consolidation
Consolidated subsidiaries as of March 31, 2022 are listed below:
Fukoku Capital Management, Inc.
Fukokushinrai Life Insurance Co., Ltd.
Fukoku Information Systems Co., Ltd.
Fukoku Life International (U.K.) Ltd.
Fukoku Life International (America) Inc.
Fukoku Life Investments Singapore Pte. Ltd.
Major unconsolidated subsidiary is Fukoku Business Service Company Limited.
Four subsidiaries are excluded from the scope of consolidation, as each one of them is small in its total assets, amount ofsales, net surplus for the period and surplus and are sufficiently insignificant to reasonable judgement on their impact on
the financial position and results of operation of the Company's group.
(2) Application of Equity Method
Unconsolidated subsidiaries (such as Fukoku Business Service Company Limited, etc.) are insignificant in their impact
on net surplus attributable to the parent company and consolidated surplus, and also immaterial as a whole, therefore,
application of equity method is not applied.
There are no affiliates for the year ended March 31, 2022.
(3) Fiscal Year of Consolidated Subsidiaries
Among the subsidiaries to be consolidated, fiscal year-end of overseas subsidiaries are December 31. For the
preparation of consolidated financial statements, financial statements as of that date are used and concerning any
important transaction taking place in between December 31 and the consolidated closing date, necessary
adjustments for consolidation are made.

46

Fukoku Mutual Life Insurance Company

II. Notes to the Consolidated Balance Sheets
1. (1) The valuation of securities, including cash and deposits and monetary claims bought which are equivalent to securities,
and securities managed as trust assets in money held in trust, is as follows:i) Trading securities are stated at fair market value. Costs of their sales are determined by the moving averagemethod.
ii) Held-to-maturity debt securities are stated at amortized cost under the straight-line method, cost being
determined by the moving average method.
iii) Policy-reserve-matching bonds are stated at amortized cost under the straight-line method, cost being determined by
the moving average method in accordance with “Temporary Treatment of Accounting and Auditing Concerning
Policy-reserve-matching Bonds in the Insurance Industry” (Industry Audit Committee Report No.21 issued by theJapanese Institute of Certified Public Accountants on November 16, 2000).
iv) Investments in unconsolidated subsidiaries and affiliates which are not accounted for under the equity
method are stated at cost, cost being determined by the moving average method.
v) Available-for-sale securities are stated at fair market value based on the market prices at the end of the
fiscal year. Costs of their sales are determined by the moving average method. Public and corporate bonds(including foreign bonds) with differences between their acquisition costs and fair values that areconsidered as adjustments of interest are stated at amortized cost (straight-line method) determined by themoving average method. However, stocks and other securities without quoted market prices are stated atcost, as determined using the moving average method. Net unrealized gains or losses on theseavailable-for-sale securities, net of taxes, are recorded as a separate component of net assets.
(2) Derivative instruments are stated at fair market value.
(3) The Company revalued the land used in the operations based on the Act for Revaluation of Land (Act No.34
promulgated on March 31, 1998). The difference between fair value and book value resulting from the revaluation, netof related taxes, is recorded as revaluation reserve for land as a separate component of net assets and the related tax isrecorded as deferred tax liabilities for land revaluation.
• Date of revaluation: March 31, 2002
• Method of revaluation as prescribed for in Article 3 Paragraph 3 of the said Act:
Calculation is based on the appraisal value for property tax set forth in Article 2 item 3 of the Enforcement
Ordinance of the Act for Revaluation of Land (Government Ordinance No.119 promulgated on March 31,
1998) and the road rate set forth in Article 2 item 4 of the said Ordinance with certain reasonable adjustments.
(4) Depreciation of the Company’s tangible fixed assets is calculated by the following methods.
• Tangible fixed assets (excluding lease assets): Declining-balance method
However, buildings (excluding building attachments and structures acquired on or before March 31, 2016)acquired on or after April 1, 1998 are depreciated using Straight-line method.
• Lease assets related to finance lease transactions that do not transfer ownership: Straight-line method over thelease term with no residual value.
Other tangible fixed assets acquired for ¥100,000 or more but less than ¥200,000 are depreciated equally overthree years.
(5) Assets and liabilities denominated in foreign currencies, except for investments in unconsolidated subsidiaries andaffiliates, are translated into Japanese yen at the effective exchange rate prevailing at the balance sheet date. Investments
in unconsolidated subsidiaries and affiliates are translated into Japanese yen at the exchange rate on the date ofacquisition.

47

Fukoku Mutual Life Insurance Company

(6) Allowance for possible loan losses for the Company is provided in accordance with the standards of self-assessment andwrite-offs and reserves on credit quality:i) For the credits of borrowers who are legally bankrupt such as being in the proceedings of bankruptcy or civil
rehabilitation (hereinafter called “legally bankrupt borrowers”) and who are substantially bankrupt (hereinafter
called “substantially bankrupt borrowers”), the Company provides the remaining amounts of credits after the
direct write-off described below and the deductions of the amount expected to be collected through the disposal ofcollateral or the execution of guarantees.
ii) For the credits of borrowers who are not currently bankrupt but have a high possibility of bankruptcy(hereinafter called “not currently bankrupt borrowers”), the Company provides the amounts deemed asnecessary considering the borrowers’ ability to pay, within the amounts after deductions of the amounts
expected to be collected through the disposal of collateral or the execution of guarantees.
iii) For the credits of borrowers other than the above, the Company provides the amounts calculated by multiplying theborrowers’ balance by the actual ratio of bad debt losses on defaults during a certain past period.
All credits are assessed by the relevant departments in accordance with the Company’s standards of self- assessment on
credit quality. The results of the assessment are reviewed by the audit department, which is independent ofbusiness-related divisions. Subsequently, the allowance for possible loan losses is provided based on the results of theseassessments.
For the credits of legally bankrupt borrowers and substantially bankrupt borrowers, the amounts remaining after
deductions of collateral value or the amounts collectible through the execution of guarantees are written-off directlyfrom the borrowers’ balances as the estimated uncollectible amounts. The amount written-off as of March 31, 2022 was¥0 million.
(7) To ensure that benefits associated with COVID-19 infections contracted during the fiscal year ended March 31, 2022
can be paid during the fiscal year ending March 31, 2023, the Company sets aside as a reserve for claims and otherpayments that exceeds the reserve for outstanding claims included under the Company's estimated payments for thelatter fiscal year (calculated based on previous payment amounts).
(8) Net defined benefit liabilities and assets, which are provided for employees’ retirement benefits, are calculated bydeducting the amount of pension assets from the amount of retirement benefit obligations incurred as of the balance
sheet date based on the projected retirement benefits as of the current fiscal year end.
The Company uses the following methods of accounting in relation to retirement benefits:• Method for allocation of projected retirement benefits ........................

Benefit formula basis• Amortization period of actuarial gains and losses.................................

10 years• Amortization period of prior service cost..............................................

10 years(9) Reserve for price fluctuation is calculated in accordance with Article 115 of the Insurance Business Act.
(10) Hedge accounting is based on "Accounting Standards for Financial Instruments" (ASBJ Statement No. 10, July 4, 2019).
The Company applies a fair value hedge accounting as a hedge against the risk of foreign exchange fluctuation in
relation to bonds and others denominated in foreign currencies, and a designated hedge accounting (“Furiate shori”) for
foreign currency swaps as a hedge against the risk of foreign exchange fluctuation in relation to bonds denominated inforeign currencies issued by the Company.
For assessing the effectiveness of hedge used, ratio analysis of comparing the fluctuations in the fair value or cash flowsof hedged items and hedging instruments is mainly applied.

48

Fukoku Mutual Life Insurance Company

(11) The Company accounts for consumption taxes by the tax-exclusion method. The consumption taxes on certain assets,
which are not deductible from consumption taxes withheld and that are stipulated to be deferred under the Tax Act, aredeferred as prepaid expenses and amortized equally over five years. Consumption taxes other than deferredconsumption taxes are recognized as an expense when incurred.
(12) Initial premium incomes are recorded by the relevant amounts received when the premium incomes have been
received and the responsibilities on the insurance contract have been commenced, in principal.
Subsequent premium incomes are also recorded as the amount of payments that have been received.
Of premium incomes that have been received, the portion corresponding to the period that has yet to pass as of the endof the fiscal year is accumulated as policy reserve in accordance with Article 116 of the Insurance Business Act andArticle 69 Paragraph 1 Item 2 of the Enforcement Regulation of the Insurance Business Act.
Premium incomes associated with the acceptance of group annuities are recorded as amounts equivalent to the policy
reserve received when accepting the transfers of these group annuities.
(13) Claims and other payments (excluding reinsurance premiums) are recorded by the relevant amounts paid when thecause for payment under the policy conditions is occurred and the calculated amounts are paid based on the policy
conditions.
In accordance with Article 117 of the Insurance Business Act and Article 72 of the Enforcement Regulation of the
Insurance Business Act, reserve for outstanding claims are accumulated as for claims for which the Company has apayment due but has not paid, or for which the occurrence of cause for payment has not been reported but the Company
recognizes that insured payment has already occurred as of the end of the fiscal year.
Claims and other payments associated with the outgoing transfer of group annuities are recorded as amounts equivalent
to the policy reserve transferred when recognizing the transfers of these group annuities.
(14) Policy reserve of the Company is accumulated in accordance with the methods stated in the statement of calculation
procedures for Insurance Premiums and Policy Reserves (Article 4 Paragraph 2 Item 4 of the Insurance Business Act)
pursuant to Article 116 Paragraph 1 of the Insurance Business Act to prepare for the future performance of obligations
under the insurance contracts for which the insurer’s responsibilities have started as of the end of the consolidated
fiscal year.
Premium reserves, one of the components of policy reserve, are calculated by the following method.
i) In regard to the policies subject to the standard policy reserve, the method as prescribed by the Commissionerof Financial Services Agency (Ministry of Finance Ordinance No.48, 1996) is applied.
ii) In regard to the policies not subject to the standard policy reserve, the net level premium method is applied.
In regard to the policy reserve accumulated pursuant to Article 69 Paragraphs 1,2, and 4 of the Enforcement Regulationof the Insurance Business Act, when the actual assumptions for long-term future cash flows (such as assumed incidence
rate and assumed interest rate) deviate from those assumptions set in the “statement of calculation procedures for
Insurance Premiums and Policy Reserves” and policy reserve is considered to be possibly insufficient to cover the future
performance of obligations, additional policy reserve is required to accumulate in accordance with Article 69 Paragraph
5 of the Enforcement Regulation of the Insurance Business Act. The following reserves have been established incompliance with this regulation.
･ Among individual annuity insurance policies with an assumed interest rate of 5.00% or higher, for policies that havebegun paying annuities (excluding wife’s annuity insurance additional rider), the Company has reduced the assumed
interest rate to 1.00% and funded additional policy reserves. As of March 31, 2022, the balance of these policy
reserves was ¥72,419 million.
･ Among whole life insurance policies with assumed interest rates of 5.00% or higher following the fiscal year ended
March 31, 2022, the Company has reduced assumed interest rates for policies with premiums that have been paid infull (excluding policies that have been converted into paid-up or extended policies, single premium policies, and49

Fukoku Mutual Life Insurance Company

policies for which premiums have been waived) to 1.00% and funded additional policy reserves of ¥107,284. The
establishment of these reserves rendered ¥1,589 million of additional policy reserves set aside at the conclusion of the
fiscal year ended March 31, 2021 unnecessary. Accordingly, the Company reversed this amount and transferred¥105,695 million (a higher amount) from contingency reserves to additional policy reserves. Consequently, theestablishment of these policy reserves has had no impact on provision of policy reserves, ordinary profits, and surplus
before income taxes.
･ The Company has also funded additional policy reserves for certain whole life insurance policies that include
distribution of surplus every five years, new cancer riders, highly advanced medical riders and advanced medical
riders. As of March 31, 2022, the balance of these policy reserves was ¥77 million.
Appointed actuaries, for each fiscal year, verify whether policy reserves have been reasonably accumulated inaccordance with Article 121 Paragraph 1 of the Insurance Business Act and Article 80 of the Enforcement Regulation of
the Insurance Business Act.
Contingency reserves, one of the components of policy reserve, are accumulated pursuant to Article 116 of the
Insurance Business Act and Article 69 Paragraph 1 Item 3 of the Enforcement Regulation of the Insurance Business Act
to cover risks that may accrue in the future in order to ensure performing future obligations under the insurance
contracts.
(15) Depreciation of intangible fixed assets is calculated by the following methods.
• Software: Straight-line method over the estimated useful lives.
• Lease assets related to finance lease transactions that do not transfer ownership: Straight-line method over thelease term with no residual value.
(16) Of the bonds of consolidated subsidiaries corresponding to the sub-groups of individual insurance and annuities which
are set by insurance types and investment policies, the bonds that are held to match the duration of liabilities areclassified as policy-reserve-matching bonds in accordance with “Temporary Treatment of Accounting and Auditing
Concerning Policy-reserve-matching Bonds in Insurance Industry” (Industry Audit Committee Report No. 21 issued
by the Japanese Institute of Certified Public Accountants on November 16, 2000).
At the end of the consolidated fiscal year ended March 31, 2022, the Company eliminated all sub-groups, andpolicy-reserve-matching bonds categorized for holding purposes were reclassified as available-for-sale securities. The
Company made this change following a review of its interest-rate risk management (conducted through strategic asset
and liability matching) that was conducted due to the Company's realization that under the prevailing environment of
low interest rates in Japan, continuing to hold bonds for the purpose of matching the duration of liabilities while
securing investment income commensurate with assumed interest rates would be prohibitively difficult.
Due to this change, securities increased by ¥81,967 million, while deferred tax liabilities rose by ¥22,951 million, andnet unrealized gains (losses) on available-for-sale securities, net of tax by ¥59,016 million. These changes had no
impact in terms of profit and loss.

2. The Company began applying the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4,
2019; hereinafter called “Accounting Standard for Fair Value Measurement”) from the beginning of the fiscal year. In
accordance with the transitional treatments prescribed in Paragraph 19 of the Accounting Standard for Fair Value
Measurement and Paragraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4,2019), new accounting policies set forth by the Accounting Standard for Fair Value Measurement will be applied
prospectively. The Company has observed no material impact from this application of the Accounting Standard for Fair
Value Measurement.
In addition, the Company has decided to provide notes regarding matters such as the breakdown of financial instruments
by fair value level in the financial instruments sections of notes to the consolidated balance sheets.

50

Fukoku Mutual Life Insurance Company

3. Asset management of the general accounts other than the separate accounts stipulated in Article 118 Paragraph 1 of the
Insurance Business Act is conducted on the principle of prudent and profitable investments by the Company, considering
public and social responsibilities of the insurance business. Based on this policy, the Company allocates the fund, securing
its liquidity, from the medium-to-long term viewpoints. The Company is diversifying investments in assets such as foreign
securities, stocks and real estates within the acceptable range of risk in order to enhance the profitability, althoughyen-denominated interest bearing assets including debt securities such as Japanese government bonds and loans are thecores of the portfolios under the asset liability management. Derivatives are mainly used to hedge the market risk regarding
spot-priced assets and liabilities.
Major financial instruments including securities, loans and derivatives are exposed to market risk and credit risk.
The Company manages its asset management risk by establishing internal control systems including various rules
pursuant to the “Three Basic Rules related to Enterprise Risk Management” established by the Board of Directors.
Specifically, the Company eliminates excessive risk deviating from the basic principle and secures the safety of the assets
by utilizing control functions of the Financial and Investment Risk Management Department towards the asset
management sections, monitoring the status of market risk and credit risk periodically on a daily or monthly basis. In
addition, the Company quantifies the market risk and credit risk using value-at-risk (VaR) method in order to control thepossible maximum losses which may arise from the holding assets within a certain range of risk buffers.
The carrying amounts, fair values and their related differences of major financial assets and liabilities in the generalaccount as of March 31, 2022 were as follows:(Millions of yen)

Carrying amount

Monetary claims bought:
Claims treated as loans……................................................
Total monetary claims bought………………….................
Money held in trust:
Trading securities.........................……………...................
Total money held in trust.....................................................
Securities:
Trading securities............................……………................
Held-to-maturity debt securities..........................................
Policy-reserve-matching bonds……………………………
Available-for-sale securities....................……………........
Total securities.......................................……………..........
Loans:
Policy loans............................................…………..…........
Ordinary loans.........................................…………….........
Total loans...............................................………….............
Assets total...............................................…………….......…......
Subordinated bonds*1........................………………...…..........
Liabilities total…..........................................……………....…....
Derivative instruments*2:
Hedge accounting not applied...........……….……..............
Hedge accounting applied……............................................
Total derivative instruments.........……………..................

Fair value

Difference

¥80
80

¥81
81

¥0
0

25,07025,07025,07025,070——18,493
1,277,683
704,016
5,551,740
7,551,934

18,493
1,434,476
734,2445,551,740
7,738,954—
156,792
30,227—
187,020

51,901
504,675
556,577
8,133,662
241,935
241,935

51,901
521,484
573,386
8,337,492
245,074
245,074(0)16,80916,809203,830
3,139
3,139

(4,814)(63,528)¥(68,342)(4,814)(63,528)¥(68,342)——¥—*1 The fair value of derivative instruments that are currency swaps under designated hedge accounting is included in the fairvalue of subordinated bonds because it is accounted for as an integral part of the subordinated bonds that are the hedge items.
*2 Assets and liabilities generated by derivative instruments are offset and presented net. Net liabilities in total arepresented in parentheses.
Notes: 1. Stocks without market prices, such as unlisted stocks, are not included in Securities of the above table. The amount ofthese stocks on the balance sheet as of March 31, 2022 was ¥9,603 million.
Notes: 2. In accordance with the transitional treatments prescribed in Paragraph 27 of the “Implementation Guidance on
Accounting Standard for Fair Value Measurement” (ASBJ Guidance No. 31, July 4, 2019), investments in
51

Fukoku Mutual Life Insurance Company

partnerships have not been included in Securities of the above table. As of March 31, 2022, the amount of investmentsin partnerships included on the balance sheet was ¥32,380 million.

4. Matters concerning the breakdown of financial instruments by fair value level are as follows.
The fair values of financial instruments are classified into the following three levels according to the observability andmateriality of inputs used to measure fair value.
Fair Value Level 1: Fair values measured using (unadjusted) quoted prices in active markets for identical assets or liabilities
Fair Value Level 2: Fair values measured using directly or indirectly observable inputs other than Level 1 inputs
Fair Value Level 3: Fair values measured using material unobservable inputs
When multiple inputs with material impact are used to measure fair value, the resulting fair value is classified into the lowest
fair value level into which any of these inputs can be categorized.
(1) Financial assets and liabilities with fair values recorded on the balance sheet as of March 31, 2022
(Millions of yen)Classification

Fair value
Level 2

Level 1

Level 3

Total

Money held in trust:
Trading securities........................…….....

¥—¥25,070¥—¥25,070

Total money held in trust..........................

—

25,070—25,070Foreign securities.................................

7,859

10,634—

18,493

Total trading securities…………….…

7,859

10,634—

18,493Government bonds……………….…...

1,436,730——

1,436,730

Local government bonds………….….

—

156,768—

156,768

Corporate bonds……………….….….

—

812,361—

812,361

Stocks………………………………...

699,672——

699,672

Foreign securities…………………….

744,8121,129,151

28,1391,902,104

Other securities………………………

3,667

—

—

3,667

Total available-for-sale securities……

2,884,883

2,098,282

28,1395,011,305

Total securities........................…….....

2,892,742

2,108,916

28,1395,029,798

Assets total.....................………………..........

2,892,742

2,133,986

28,1395,054,868

Currency-related………………..............

—(68,160)—(68,160)

Interest-related………………………….

—

20

—

20

Stock-related……………………............

(202)

—

—

(202)

Total derivative instruments...….............

¥(202)¥(68,140)¥—¥(68,342)

Securities:
Trading securities:

Available-for-sale securities:

Derivative instruments*:* Assets and liabilities generated by derivative instruments are offset and presented net. Net liabilities in total arepresented in parentheses.
Note: In accordance with the transitional treatments prescribed in Paragraph 26 of the “Implementation Guidance on
Accounting Standard for Fair Value Measurement” (ASBJ Guidance No.31, July 4, 2019), investment trusts havenot been included in the figures above.
As of March 31, 2022, the amount of investment trusts included on the balance sheet was ¥540,435 million.

52

Fukoku Mutual Life Insurance Company

(2) Financial assets and liabilities with fair values not recorded on the balance sheet as of March 31, 2022
(Millions of yen)Classification

Fair value
Level 2

Level 1

Level 3

Total

Monetary claims bought:
Claims treated as loans………..................

¥—

¥—

¥81

¥81

Total monetary claims bought……….….

—

—

81

81

Government bonds……………….…...

1,205,133——

1,205,133

Local government bonds……….….….

—

98,778—98,778

Corporate bonds….………………..….

—

108,022—108,022

Foreign securities..................................

20,878

1,663—

22,541

Total held-to-maturity debt securities...

1,226,012

208,463—

1,434,476

Government bonds…………….……...

290,940——

290,940

Local government bonds….……….….

—

137,159—

137,159

Corporate bonds……..…………….….

—

306,143—

306,143

Total policy-reserve-matching bonds…

290,940

443,303—734,244

Total securities.............................…….

1,516,953

651,767—

2,168,720

Policy loans.................................…..........

——

51,901

51,901

Ordinary loans........................................

——

521,484

521,484

Total loans................................…............

——

573,386

573,386

Assets total.........................................…….......

1,516,953

651,767

573,467

2,742,188

Subordinated bonds……………………….....

—

245,074—

245,074

Liabilities total..........………………….….......

¥—¥245,074¥—¥245,074

Securities:
Held-to-maturity debt securities:

Policy-reserve-matching bonds:

Loans:(3) Explanation of valuation techniques and inputs used to measure fair valuei) Securities (including deposits and monetary claims bought which are treated as securities based on “AccountingStandards for Financial Instruments” [ASBJ Statement No.10, July 4, 2019])
The fair values of securities for which unadjusted quoted market prices in active markets are available (primarily
listed stocks and government bonds [including some foreign securities]) are classified as Fair Value Level 1.
Meanwhile, the fair values of securities for which quoted market prices are available, but are not available inactive markets, are classified as Fair Value Level 2 (This category primarily includes local government bonds andcorporate bonds [including some foreign securities]). When quoted market prices are not available for securities,
prices obtained from third parties (mainly from information vendors and financial institutions with which theCompany conducts business) and determined to have been measured in accordance with prescribed accounting
standards are used to measure the fair values of these securities. If the inputs used to measure the fair value of agiven security are material but unobservable, the resulting fair value is classified as Fair Value Level 3.
ii) Money held in trust
In principle, the fair values of securities managed as trust assets and classifed as money held in trust are measured
using the Company's prescribed method for determining the value of securities. These fair values are categorized
as Fair Value Level 2.

53

Fukoku Mutual Life Insurance Company

iii) Loans and monetary claims bought treated as loans
The fair values of policy loans are deemed to approximate book values, considering estimated repayment period
and interest rate conditions since their repayment deadlines have not been set up due to the characteristics that theloans are limited to the amount of cash surrender values. Therefore, the book values are used as the fair values ofpolicy loans.
The fair values of floating interest rate loans among the ordinary loans and monetary claims bought treated asloans approximate the book values because the market interest rates are reflected in future cash flows in a shortperiod. Therefore, the fair values of floating interest rate loans and monetary claims bought treated as loans are
based on their book values. The fair values of fixed interest rate loans are primarily measured by discounting thefuture cash flows to the present values.
The fair values of loans from legally bankrupt borrowers, substantially bankrupt borrowers and not currently
bankrupt borrowers and monetary claims bought treated as loans are computed by deducting the amount of theallowance for possible loan losses from the book values before direct write-offs.
If the impact of unobservable inputs used to measure the fair values of loans and monetary claims bought treatedas loans is determined to be material, the resulting fair values are classified as Fair Value Level 3. Otherwise, they
are categorized as Fair Value Level 2.
iv) Subordinated bonds
The fair values of corporate bonds issued by the Company are classified as Fair Value Level 2 and are measured
using the same method applied to securities.
v) Derivative instruments
The fair values of derivative instruments for which unadjusted quoted market prices in active markets areavailable (primarily exchange-traded futures and options) are classified as Fair Value Level 1. However, mostderivative instruments are traded over the counter and have no quoted market prices. Accordingly, prices obtained
from third parties (mainly from information vendors and financial institutions with which the Company conducts
business) and determined to have been measured in accordance with prescribed accounting standards are used tomeasure the fair values of these derivative instruments. Fair values of derivative instruments that were measured
using only observable inputs or with unobservable inputs considered to be immaterial are classified as Fair Value
Level 2. Meanwhile, fair values of derivative instruments that have been measured using material unobservable
inputs are categorized as Fair Value Level 3.
(4) Information concerning fair values of financial assets and liabilities that have been recorded on the balance sheet as ofMarch 31, 2022 and classified as Fair Value Level 3i) Quantitative information regarding material unobservable inputs
When measuring fair value, the Company does not adjust quoted prices obtained from third parties and does notmake estimates related to inputs that it cannot observe. Accordingly, quantitative information regarding material
unobservable inputs have been omitted.

54

Fukoku Mutual Life Insurance Company

ii) Reconciliation of balances at the beginning of the current fiscal year and balances as of March 31, 2022, andvaluation gains or losses recognized in the statements of operations for the consolidated fiscal year ended March
31, 2022.
(Millions of yen)
Securities,
Available-for-sale securities,
Foreign securities

Total

Balance at the beginning of the current fiscal year…………...
Gains or losses and other comprehensive income during
the fiscal year…………..……………………………....…

¥29,312¥29,312(1,172)(1,172)

Values recognized as gains or losses*1..……………...…

(10)

(10)

Values recognized as other comprehensive income …..

(1,162)(1,162)

Balance at the end of the current fiscal year………..……...…

¥28,139¥28,139*2*1 These amounts are included in investment income and investment expenses in the consolidated statements ofoperations for the fiscal year ended March 31, 2022.
*2 These amounts are included in net unrealized gains (losses) on available-for-sale securities, net of tax under othercomprehensive income in the consolidated statements of comprehensive income for the fiscal year ended March
31, 2022.

iii) Explanation of the valuation process for fair value
The Company's asset management division is responsible for the formulation of policies and procedures related tothe measurement of fair value and the actual measurement of fair value. These fair values are subsequently
checked by the risk management department to ensure their appropriateness and compliance with relevant policies
and procedures.
The Company verifies the appropriateness of the fair values it measures using a variety of suitable methods, which
include comparing quoted market prices obtained from different third parties; confirming techniques and inputs
utilized for calculation; and further comparing measured fair values with the fair values of similar financial
instruments.
iv) Explanation of the impact on fair value in case of change in material unobservable inputs
When measuring fair value, the Company does not adjust quoted prices obtained from third parties and does notmake estimates related to inputs that it cannot observe. Accordingly, it has omitted information concerning impact
on fair value stemming from changes in material unobservable inputs.

5. The Company holds investment and rental properties such as office buildings in Tokyo and other areas. The carrying
amounts and the fair values of investment and rental properties were ¥194,813 million and ¥326,189 million as of March 31,
2022, respectively. The fair value is mainly based on the value calculated by the Company in accordance with real estateappraisal standards which includes some adjustments using the reference prices.
The amount corresponding to asset retirement obligations included in the carrying amount of investment and rental
properties was ¥367 million as of March 31, 2022.

6. The amount of securities lent under lending agreements was ¥621,280 million as of March 31, 2022.

7. The total amount of claims against bankrupt and quasi-bankrupt obligors, claims with collection risk, delinquent loans past
three months or more, and restructured loans was ¥3,776 million as March 31, 2022. The details are as follows.
i) The balance of claims against bankrupt and quasi-bankrupt obligors was ¥160 million as of March 31, 2022.
Of which, the estimated uncollectible amount written-off was ¥0 million as of March 31, 2022.
Claims against bankrupt and quasi-bankrupt obligors are loans to borrowers who are subject to bankruptcy, corporate
reorganization or rehabilitation or other similar proceedings and other borrowers in serious financial difficulties.

55

Fukoku Mutual Life Insurance Company

ii) The balance of claims with collection risk was ¥1,999 million as of March 31, 2022.
Claims with collection risk are loans to obligors (other than bankrupt and quasi-bankrupt obligors) with deteriorated
financial condition and results of operations from which it is unlikely that the principal and interest on the loans will berecovered.
iii) There was no balance of delinquent loans past three months or more as of March 31, 2022.
Delinquent loans past three months or more are loans for which interest payments or repayments of principal aredelinquent for three months or more from the due date under the terms of the related loan agreements, excluding thoseloans classified as claims against bankrupt and quasi-bankrupt obligors, claims with collection risk.
iv) The balance of restructured loans was ¥1,616 million as of March 31, 2022.
Restructured loans are loans for which certain concessions favorable to borrowers, such as interest reduction or
exemption, rescheduling of due date for repayments of principal or interest payment, waiver of claim or other terms,
have been negotiated for the purpose of assisting and supporting the borrowers in the restructuring of their business.
This category excludes loans classified as claims against bankrupt and quasi-bankrupt obligors, claims with collection
risk, and delinquent loans past three months or more.

8. Accumulated depreciation of tangible fixed assets were ¥179,324 million as of March 31, 2022.

9. Total assets in separate accounts provided for in Article 118 of the Insurance Business Act were ¥112,487 million as ofMarch 31, 2022. The amounts of separate account liabilities were the same as separate account assets.

10. The total amounts of receivables from/payables to unconsolidated subsidiaries were ¥2,245 million and ¥39 million as ofMarch 31, 2022, respectively.

11. Deferred tax assets and deferred tax liabilities as of March 31, 2022 were ¥175,093 million and ¥193,317 million,
respectively. Valuation allowance for deferred tax assets was ¥5,133 million.
Major components of deferred tax assets were ¥99,652 million of policy reserves, ¥52,554 million of reserve for pricefluctuation and ¥13,115 million of net defined benefit liabilities as of March 31, 2022.
Major component of deferred tax liabilities was ¥187,990 million of net unrealized gains on available-for-sale securities
as of March 31, 2022.
The statutory tax rate and the actual effective tax rate for the year ended March 31, 2022 were 28.0% and 4.8%,
respectively. The difference between the statutory tax rate and the actual effective tax rate was attributable mainly to-24.1% of reserve for dividends to policyholders.

12. Changes in reserve for dividends to policyholders for the year ended March 31, 2022 were as follows:(Millions of yen)

Balance at the beginning of the fiscal year….......................................................

¥ 63,232

Transfer from surplus in the previous fiscal year.................................................

32,744

Dividend payments to policyholders during the fiscal year…..………………...

(32,580)

Increase in interest....................................................………………..……..........

13

Balance at the end of the fiscal year.....................................................................

¥ 63,411

56

Fukoku Mutual Life Insurance Company

13. Changes in reserve for dividends to policyholders (Fukokushinrai Life Insurance Co., Ltd.) for the year ended
March 31, 2022 were as follows:(Millions of yen)

Balance at the beginning of the fiscal year….......................................................

¥ 308

Dividend payments to policyholders during the fiscal year…..………………...

(181)

Increase in interest....................................................……………..………..........

0

Provision of reserve for dividends to policyholders…………………..…….….

195

Balance at the end of the fiscal year.....................................................................

¥ 322

14. The amount of stocks of unconsolidated subsidiaries was ¥404 million as of March 31, 2022.

15. Assets pledged as collateral as of March 31, 2022 were ¥225,740 million of securities.
Secured debts as of March 31, 2022, were ¥166,881 million.
These amounts include ¥150,826 million of investments in securities deposited and ¥160,928 million of cash received ascollateral under securities lending transactions secured by cash as of March 31, 2022.

16. Reserve for outstanding claims for the reinsurance contracts provided in accordance with Article 71 Paragraph 1 of the
Enforcement Regulation of the Insurance Business Act (hereinafter called “reserve for outstanding claims for ceded
reinsurance”) was ¥2 million as of March 31, 2022.
Policy reserve for the reinsurance contracts provided in accordance with Article 71 Paragraph 1 of the Enforcement
Regulation of the Insurance Business Act (hereinafter called “policy reserve for ceded reinsurance”) was ¥42 million as ofMarch 31, 2022.

17. There were unused commitment line agreements under which the Company is the lender of ¥11,492 million as of March 31,
2022.

18. Repayments of subordinated bonds are subordinated to other obligations.

19. The future contribution to the Life Insurance Policyholders Protection Corporation of Japan under Article 259 of the
Insurance Business Act was estimated at ¥9,995 million as of March 31, 2022.
The contribution is recognized as operating expenses when contributed.

20. Matters Related to Employees’ Retirement Benefits as of March 31, 2022
(1) Overview of Employees’ Retirement Benefit Plan
As for a defined benefit plan for office-based employees, the Company and its consolidated subsidiaries have adefined benefit corporate pension plan and retirement lump-sum payments. As for a defined contribution plan for these
employees, the Company also has a defined contribution pension plan.
As for a defined benefit plan for sales employees, the Company has retirement lump-sum payments.
The Company places a retirement benefit trust in relation to the retirement lump-sum grant plan for sales employees.
The simplified method for calculating retirement benefit obligation is applied to a portion of the Company and someconsolidated subsidiaries’ retirement lump-sum grant plans.

57

Fukoku Mutual Life Insurance Company

(2) Defined Benefit Plani) Reconciliation of beginning and end of balance of retirement benefit obligation(Millions of yen)

Retirement benefit obligation at the beginning of the fiscal year…….………

¥ 91,051

Service cost………………………………………………………….……..

3,701

Interest cost………………………………………………………….……..

541

Actuarial differences occurred during the fiscal year……………………..
Retirement benefit payments………………………………………………

47(4,185)Retirement benefit obligation at the end of the fiscal year……………………

¥ 91,156ii) Reconciliation of beginning and end of balance of pension plan assets(Millions of yen)

Pension plan assets at the beginning of the fiscal year……………….………

¥ 62,627

Expected return on pension plan assets…………….……………….……..

1,202

Actuarial differences occurred during the fiscal year……………………..

956

Contributions by the employer…………………………………………....

1,117

Retirement benefit payments………………………………………………
Others………………………………………………………………………

(1,608)4Pension plan assets at the end of the fiscal year…………………..….………

¥ 64,301

iii) Reconciliation of retirement benefit obligation and pension plan assets with net defined benefit
liabilities and assets presented on the consolidated balance sheet(Millions of yen)a. Funded plan retirement benefit obligation…………………………………
b. Pension plan assets……………………………….…………….…………..

¥ 78,843(64,301)c. (a + b)…………………………………………………………….………...
d. Unfunded plan retirement benefit obligation……………………………....

14,542
12,312e. Net amount of liabilities and assets presented
on the consolidated balance sheet……………………………….……….
f. Net defined benefit liabilities…………………………………………..…..
g. Net defined benefit assets………………………………………………….

26,85527,677(822)

h. Net amount of liabilities and assets presented
on the consolidated balance sheet………………………………….…….

¥ 26,855

iv) Breakdown of retirement benefit gains and losses(Millions of yen)

Service cost…………………………………………..…………………….…
Interest cost………………………………..……….…………….……….…..

¥ 3,701
541

Expected return on pension plan assets………………………….…….……...

(1,202)

Amortization of actuarial differences………………………………………....

1,428

Amortization of prior service costs………………………………………..….
Others…………………………………………………………………………

(13)
(4)

Retirement benefit expenses related to defined benefit plan……………....…

¥ 4,450v) Remeasurements of defined benefit plan
Remeasurements of defined benefit plan (before tax effects) comprised the following:(Millions of yen)Amortization of actuarial differences….…………………………..….….…
Amortization of prior service cost………...……………………..…...……..

¥ 2,337(13)

Total…………………………………………………………………………

¥ 2,323

58

Fukoku Mutual Life Insurance Company

vi) Accumulated remeasurements of defined benefit plan
Accumulated remeasurements of defined benefit plan (before tax effects) comprised the following:(Millions of yen)

Unrecognized actuarial differences….………………………………..….…
Unrecognized prior service cost……...……………………………………..

¥ (2,774)(45)

Total……….……………………………………………………………….....…

¥ (2,819)

vii) Breakdown of pension plan assets
The breakdown of asset categories as a percentage of total pension plan assets were as follows:
Domestic stocks…………………………………..……...…………………
Life insurance general account…………..……….………………...……....

41.9%
31.6%

Foreign stocks………………………………………………..……..……....

10.2%

Domestic bonds………………………….……………………..…………...

9.5%

Assets under joint management……………………………….………..…..
Foreign bonds…………………………………………..……………………

3.6%
3.1%

Total……….……………………………………………..…………….....…

100.0%

Within the total of pension assets, 35.5% of this amount is accounted for by the retirement benefit trust established inrelation to the retirement lump-sum payments plan for sales employees.
viii) Method for setting the expected long-term rate of return
To set the expected long-term rate of return on pension plan assets, the Company takes into account the present andfuture allocation of pension plan assets, and the present and expected future long-term rate of return on a variety ofassets that makes up the pension assets.
ix) Underlying actuarial assumptions
Main underlying actuarial assumptions as of March 31, 2022, were as follows:
Discount rate………………………………..………….…………….…..…
Expected long-term rate of return on pension plan assets

0.6%

Defined Benefit Plan….…………………………………………………...
Retirement benefit trust………………………………..……..…………....

3.0%
0.0%

(3) Defined Contribution Plan
The required contribution amount by the Company and its consolidated subsidiaries to the defined contribution plan was¥339 million as of March 31, 2022.

59

Fukoku Mutual Life Insurance Company

III. Notes to the Consolidated Statements of Operations
1. The total amounts of revenues and expenses in connection with unconsolidated subsidiaries were ¥128 million and ¥1,197
million for the year ended March 31, 2022.

2. For the year ended March 31, 2022, in calculating the provision of reserve for outstanding claims, a reversal of reserves foroutstanding claims reinsured of ¥24 million was added. In calculating the provision of policy reserves, a reversal of reserves
for policy reserves reinsured of ¥6 million was added.

IV. Notes to the Consolidated Statements of Comprehensive Income
1. Other Comprehensive Income
The reclassification adjustments and tax effect amounts related to other comprehensive income for the year ended March
31, 2022 were as follows:i) Net unrealized gains (losses) on available-for-sale securities, net of tax(Millions of yen)Amount incurred during the fiscal year………………………….…………

¥ 27,373

Reclassification adjustments…………………………..……..……………..

1,036

Before tax adjustments…………………………………………………….

28,409Tax effects……………………………………………………..…………..

(7,827)Net unrealized gains (losses) on available-for-sale securities, net of tax….

¥ 20,581

ii) Foreign currency translation adjustments(Millions of yen)Amount incurred during the fiscal year…………………………….………

¥259

Reclassification adjustments…………………………..………..…………..

—

Before tax adjustments…………………………………………………….

259

Tax effects……………………………………………………..…………..

—

Foreign currency translation adjustments………………………………….

¥ 259iii) Remeasurements of defined benefit plans, net of tax(Millions of yen)Amount incurred during the fiscal year…….………………………………

¥ 909

Reclassification adjustments…………………………..………..…………..

1,414

Before tax adjustments…………………………………………………….

2,323

Tax effects……………………………………………………..…………..

(650)

Remeasurements of defined benefit plans, net of tax………….………….

1,673

Total other comprehensive income………………………………………..

¥ 22,514

60

Fukoku Mutual Life Insurance Company

V. Notes to the Consolidated Statements of Cash Flows
1. Cash and cash equivalents as of March 31, 2022 consist of "Cash," "Deposits in transfer account," "Current deposits,""Ordinary deposits," "Notice deposits," "Time deposits maturing within 3 months of the date of acquisition," "Foreign
currency deposits maturing within three months of the date of acquisition," "Negotiable certificate of deposits maturing
within three months of the date of acquisition," "Call loans" and "Monetary claims bought maturing within three months ofthe date of acquisition."

2. Reconciliations of cash and cash equivalents in the consolidated statements of cash flows to the consolidated balance sheet
accounts as of March 31, 2022 were as follows:(Millions of yen)

Cash and deposits.......................……....................................................................

¥323,128

Call loans...........................................................…….............................................

48,000

Monetary claims bought...............................................……..................................

80

Time deposits maturing over 3 months of the date of acquisition.........................

(3,100)Foreign currency deposits maturing over 3 months of the date of acquisition…..

(1,029)

Monetary claims bought maturing over 3 months of the date of acquisition…….

(80)

Cash and cash equivalents.................................................................………….....

¥ 366,999

61

Fukoku Mutual Life Insurance Company

(7) Disclosed Claims Based on Insurance Business Act(Millions of yen)

As of March 31, 2021

Claims against bankrupt and quasi-bankrupt obligors

As of March 31, 2022

175

160

2,515

1,999

Delinquent loans past three months or more——

Restructured loans

529

1,616

3,220
[0.31%]

3,776[0.32%]

Claims against normal obligors

1,037,502

1,178,872

Total

1,040,723

1,182,649

Claims with collection risk

Subtotal[Percentage of total]

Notes: 1. Claims against bankrupt and quasi-bankrupt obligors are loans to borrowers who are subject to bankruptcy,
corporate reorganization or rehabilitation or other similar proceedings and other borrowers in serious
financial difficulties.
Notes: 2. Claims with collection risk are loans to obligors (other than claims against bankrupt and quasi-bankrupt
obligors) with deteriorated financial condition and results of operations from which it is unlik ely that the
principal and interest on the loans will be recovered.
Notes: 3. Delinquent loans past three months or more are loans for which interest payments or repayments of principal
are delinquent for three months or more from the due date under the terms of the related loan agreements,
excluding those loans classified as claims against bankrupt and quasi-bankrupt obligors, claims withcollection risk.
Notes: 4. Restructured loans are loans for which certain concessions favorable to borrowers, such as interest reduction
or exemption, rescheduling of due date for repayments of principal or interest payment, waiver of claim orother terms, have been negotiated for the purpose of assisting and supporting the borrowers in the
restructuring of their business. This category excludes loans classified as claims against bankrupt andquasi-bankrupt obligors, claims with collection risk, and delinquent loans past three months or more.
Notes: 5. Claims against normal obligors are all other loans.

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Fukoku Mutual Life Insurance Company

(8) Status of Insurance Claims Paying Ability of the Company and Insurance Subsidiaries(Consolidated Solvency Margin Ratio)(Millions of yen)

As ofMarch 31, 2021

As ofMarch 31, 2022

1,931,765

2,003,378

Foundation funds and surplus

233,072

235,245

Reserve for price fluctuation

183,520

187,692

Contingency reserve

232,253

157,929

—

—

1,911

820

(Net unrealized gains (losses) on securities (before tax) and deferredhedge gains (losses) (before tax)) × 90%

581,556

607,419

Net unrealized gains on real estate × 85%

141,522

140,830

Sum of unrecognized actuarial differences and unrecognized prior service cost

(5,143)(2,819)

Excess amount of policy reserve based on full-time Zillmer method

276,537

389,036

Qualifying subordinated debt

241,935

241,935

The amount of "excess amount of policy reserve based on full-time Zillmer
method" and "qualifying subordinated debt" excluded from the calculation ofsolvency margin——

Deductible items——

44,59945,288296,299

314,415

Total solvency margin(A)

Catastrophe loss reserve
General allowance for possible loan losses

OthersTotal amount of risk √(√𝑅12 + 𝑅52 + 𝑅8 + 𝑅9)2 + (𝑅2 + 𝑅3 + 𝑅7)2 + 𝑅4 + 𝑅6

(B)

Insurance risk

R1

22,75322,215General insurance risk

R5

—

—

Catastrophe risk

R6

—

—

3rd sector insurance risk

R8

10,03010,108Small amount and short-term insurance risk

R9

—

—

Assumed investment yield risk

R2

30,14522,508Minimum guarantee risk

R7

—

—

Investment risk

R3257,878

283,438

Business risk

R4

6,416

6,765

1,303.9%

1,274.3%

Solvency margin ratio
(A)
× 100
(1/2) × (B)Notes: 1. Above figures are calculated based on the provisions of Articles 86-2 and 88 of the Enforcement Regulation of the Insurance
Business Act and the Financial Services Agency Notification No. 23, 2011.
Notes: 2. "Minimum guarantee risk" is calculated by standard method.

63

Fukoku Mutual Life Insurance Company

(9) Status of Insurance Claims Paying Ability of Insurance Subsidiaries(Solvency Margin Ratio)[Fukokushinrai Life Insurance Company](Millions of yen)

As ofMarch 31, 2021

As ofMarch 31, 2022

101,033

99,581

Foundation funds and surplus

70,652

71,158Reserve for price fluctuation

10,723

11,022

Contingency reserve

2,380

2,471

0

0

11,165

8,672

—

—

2,347

2,295

Qualifying subordinated debt——

The amount of "excess amount of policy reserve based on full-time Zillmer
method" and "qualifying subordinated debt" excluded from the calculation ofsolvency margin——

Deductible items

—

—

3,763

3,960

18,623

17,828

Total solvency margin(A)

General allowance for possible loan losses(Net unrealized gains (losses) on securities (before tax) and deferredhedge gains (losses) (before tax)) × 90%
Net unrealized gains on real estate × 85%
Excess amount of policy reserve based on full-time Zillmer method

OthersTotal amount of risk √(𝑅1 + 𝑅8)2 + (𝑅2 + 𝑅3 + 𝑅7)2 + 𝑅4

(B)

Insurance risk

R1

419

410

3rd sector insurance risk

R8

137

144

Assumed investment yield risk

R2

341

326

Minimum guarantee risk

R7

—

—

Investment risk

R3

17,89817, 132

Business risk

R4

375

360

1,084.9%

1,117.1%

Solvency margin ratio(A)×100(1/2) × (B)Note: Above figures are calculated based on the provisions of Articles 86 and 87 of the Enforcement Regulation of the Insurance Business Act
and Ministry of Finance Notification No.50, 1996.

64

Fukoku Mutual Life Insurance Company