February 13, 2012

Financial Results for the Nine Months Ended December 31, 2011
Fukoku Mutual Life Insurance Company (President: Yoshiteru Yoneyama) announces financial results
for the nine months ended December 31, 2011.

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

P.1

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

P.3

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

P.6

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

P.7

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

P.10

6. Solvency Margin Ratio…………………

P.11

7. Status of Separate Account…………………

P.13

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

P.14

1. Business Highlights(1) Policies in Force, New Policies and Surrendered and Lapsed Policies(i) Policies in Force
As of December 31, 2011

As of March 31, 2011
Number of policies

Amount(Thousands)(100 millions of yen)

2,967

Individual insurance

Number of policies(Thousands)

270,750

AmountChanges(%, Pre-FYE)

2,981

100.5

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

262,576

97.0

755

29,754765

101.3

29,916

100.5

3,722

300,504

3,746

100.7

292,49297.3

Group insurance−

162,472−−

163,456100.6

Group annuities−

19,664−−

19,686

100.1

Individual annuities
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 an annuity for whichannuity payments have not yet commenced and (b) the amount of policy reserve for an annuity for which payments have commenced.
2. Policy amount in force for group annuities is equal to the amount of outstanding policy reserve.

(ii) New Policies
Total
Nine months ended
December 31, 2010

New business

Net increase by
conversion

Number of policies

AmountAmountAmount(Thousands)(100 millions of yen)(Thousands)(100 millions of yen)

Individual insurance

317

9,185

11,404(2,219)Individual annuities

27

900

924

(23)

345

10,085

12,328(2,243)

Group insurance

−

497

497

−

Group annuities

−

4

4

−

Subtotal

Total
Nine months ended
December 31, 2011

Number of policies(Thousands)

AmountChanges(%, YoY)

Net increase by
conversion

New business(100 millionsof yen)Amount(100 millionsof yen)Changes(%, YoY)

AmountChanges(%, YoY)(100 millionsof yen)Changes(%, YoY)

Individual insurance

298

94.1

10,231

111.4

11,715102.7(1,483)−

Individual annuities

31

113.1

1,059

117.6

1,078

116.7

(19)

−

330

95.7

11,290111.9

12,793103.8(1,502)−

Group insurance

−

−

128

25.7

128

25.7

−

−

Group annuities

−

−

0

16.9

0

16.9

−

−

Subtotal

Notes: 1. Number of new policies is the sum of new business and policies after conversion.
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.
3. Amount for group annuities is equal to the initial premium payment.

(iii) Surrendered and Lapsed Policies (Individual Insurance and Individual Annuities)
Nine months ended
December 31, 2010

Nine months ended
December 31, 2011
Changes(%, YoY)

Amount of surrender and lapse(100 millions of yen)

Surrender and lapse ratio (%)

13,453

12,359

91.9

4.27

4.11

(0.16)

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

-1-

Fukoku Mutual Life Insurance Company

(2) Annualized Premiums(i) Policies in Force(100 millions of yen except percentage)

As ofMarch 31, 2011

As of
December 31, 2011
Changes(%, Pre-FYE)

Individual insurance

2,848

2,820

99.0

Individual annuities

1,269

1,291

101.7

Total

4,118

4,112

99.8

1,018

1,033

101.5

Medical coverage and living benefits(ii) New Policies(100 millions of yen except percentage)

Nine months ended
December 31, 2010

Nine months ended
December 31, 2011
Changes(%, Pre-FYE)

Individual insurance

146

157

107.2

Individual annuities

41

46

112.1

Total

187

203

108.3

59

64

108.3

Medical coverage and living benefits

Notes: 1. Annualized premiums are calculated by using coefficients based on the premium payment method. (For single premium
contracts, the amount is calculated by dividing the premium by the coverage period.)
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 care benefits, etc.) and premium
waiver benefits, in which disability cause is excluded but causes such as specific illness are included.
3. New policies include net increase by conversion.

(3) Selected Items of Statements of Operations(100 millions of yen except percentage)

Nine months ended
December 31, 2010

Nine months ended
December 31, 2011
Changes(%, Pre-FYE)

Premium and other income

4,780

4,439

92.9

Investment income

1,153

1,082

93.8

Claims and other payments

4,722

3,687

78.1

Investment expenses

455

565

124.0

Ordinary profits

468

302

64.7

(4) Total Assets(100 millions of yen except percentage)

As ofDecember 31, 2011

As ofMarch 31, 2011

Changes(%, Pre-FYE)

56,752

Total assets-2-

56,054

98.8

Fukoku Mutual Life Insurance Company

2. Investment Results of General Account Assets(1) Asset Composition(Millions of yen)
As ofDecember 31, 2011

As ofMarch 31, 2011
Cash, deposits, call loans
Monetary claims bought
Money held in trust
Securities
Domestic bonds
Domestic stocks
Foreign securities
Foreign bonds
Foreign stocks and other securities
Other securities
Loans
Policy loans
Ordinary loans
Real estate
Deferred tax assets
OthersAllowance for possible loan losses
Total
Foreign currency denominated assets

AmountPercentage
237,739
4.2
1,424
0.0
33,1690.6
3,699,745
66.1
2,430,669
43.4
352,641
6.3
862,075
15.4
687,834
12.3
174,240
3.1
54,3591.0
1,143,863
20.4
71,4791.3
1,072,383
19.2
281,288
5.0
87,332
1.6
112,466
2.0(2,513)(0.0)
5,594,517
100.0
696,20712.4-3-

AmountPercentage
126,905
2.3
1,368
0.0
34,075
0.6
3,907,279
70.6
2,639,974
47.7
323,075
5.8
891,19716.1
702,733
12.7
188,463
3.4
53,0311.0
1,063,972
19.2
69,2781.3
994,69418.0
274,041
5.0
72,731
1.3
54,2651.0(2,367)(0.0)
5,532,272
100.0
724,183
13.1

Fukoku Mutual Life Insurance Company

(2) Fair Value Information on Securities (with fair value, other than trading securities)(Millions of yen)

As of March 31, 2011

As of December 31, 2011

Gains/losses

Book value

Fair value

427,312436,409

9,096

9,983

Domestic bonds

378,178

387,523

9,345

Foreign bonds

49,134

48,885

Monetary claims bought−

Negotiable certificate of deposits−

OthersGains/losses

Book value

Fair value

886

820,111

847,832

27,721

28,596

9,345−

777,674

803,931

26,256

26,571

314

(249)

637

886

42,43643,901

1,464

2,025

561

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

652,180

672,087

19,90723,872

3,965

670,583

707,249

36,66638,9392,273

Domestic bonds

644,831664,759

19,92823,872

3,944

656,463

693,293

36,83038,9312,100

Foreign bonds

7,349

7,328

(21)

0

21

14,11913,955

(164)

8

172

1,393

868

(524)

−

524

1,393

790

(602)

−

602

2,331,356

2,347,024

15,66776,48660,8182,130,080

2,155,907

25,826104,31378,486

Domestic bonds

1,389,523

1,407,660

18,13624,3696,232

1,152,439

1,205,836

53,397

57,906

4,508

Domestic stocks

300,218

317,678

17,46043,32725,867

276,792

279,018

2,226

34,54932,323Gains
Held-to-maturity debt securities

Policy-reserve-matching bonds

Investments in subsidiaries and affiliates
Available-for-sale securities

Losses

Gains

Losses875

Foreign securities

593,121575,527(17,594)

7,582

25,177653,888627,219(26,668)

10,84637,515

Foreign bonds

411,835

403,179(8,656)

4,572

13,228448,981440,149(8,832)

8,704

17,537

Foreign stocks and other securities

181,285

172,347(8,938)3,010

11,948204,907

187,070(17,836)

2,141

19,97848,491

46,158(2,333)

1,207

3,541

46,96043,832(3,128)

1,010

4,139

Money held in trust

−

−

−

−

−

−

−

−

−

−

Monetary claims bought

−

−

−

−

−

−

−

−

−

−

Negotiable certificate of deposits

−

−

−

−

−

−

−

−

−

−

Others

−

−

−

−

−

−

−

−

−

−

3,412,242

3,456,389

44,146110,342

66,1953,622,168

3,711,779

89,611

171,849

82,238Domestic bonds

2,412,533

2,459,943

47,41057,587

10,176

2,586,577

2,703,061

116,484

123,408

6,924

Domestic stocks

300,218

317,678

17,46043,32725,867

276,792

279,018

2,226

34,54932,323Foreign securities

650,998

632,608(18,390)

8,220

26,610711,838

685,867(25,971)

12,88038,851

Foreign bonds

468,319459,392(8,927)

5,209

14,136505,538

498,006(7,531)

10,73818,270Foreign stocks and other securities

182,678

173,215(9,462)

3,010

12,473

206,300

187,860(18,439)

2,141

20,581

48,491

46,158(2,333)

1,207

3,541

46,96043,832(3,128)

1,010

4,139

Money held in trust

−

−

−

−

−

−

−

−

−

−

Monetary claims bought

−

−

−

−

−

−

−

−

−

−

Negotiable certificate of deposits

−

−

−

−

−

−

−

−

−

−

Others

−

−

−

−

−

−

−

−

−

−

Other securities

Total

Other securities

Note: The table above includes assets which are considered appropriate to deem as securities under the Financial Instruments and Exchange Law.

* Book value of securities without fair value are as follows:(Millions of yen)
As ofDecember 31, 2011

As ofMarch 31, 2011
Held-to-maturity debt securities−−

Unlisted foreign bonds−−

Others−−−−Investments in subsidiaries and affiliates

26,61635,969Available-for-sale securities

Policy-reserve-matching bonds

17,047

17,287

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

8,345

8,087

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

500−

Unlisted foreign bonds
Others
Total

-4-

−

−

8,201

9,199

43,66453,256

Fukoku Mutual Life Insurance Company

(3) Fair Value Information on Money Held in Trust(Millions of yen)
As of March 31, 2011
Carrying
value onbalancesheetsMoney held in trust

As of December 31, 2011

Gains/losses
Fair value

33,16933,169Gains−

Losses−−Carrying
value onbalancesheetsGains/losses
Fair value

34,075

Gains−

34,075Losses−−* Money held in trust for trading purpose(Millions of yen)
As of March 31, 2011
Net valuation gains/losses
included in the statementsof operations

Carrying value onbalance sheets
Money held in trust
for trading purpose

As of December 31, 2011

32,169Net valuation gains/losses
included in the statementsof operations

Carrying value onbalance sheets(0)

33,075(256)* Money held in trust classified as held-to-maturity, policy-reserve-matching and available-for-sale(Millions of yen)
As of March 31, 2011
Book value Fair value

As of December 31, 2011

Gains/losses
Gains

LossesGains/losses

Book value Fair value

Gains

LossesMoney held in trust
for held-to-maturity

−

−

−

−

−

−

−

−

−

−

Money held in trust
for policy-reserve-matching

−

−

−

−

−

−

−

−

−

−

Money held in trust
for available-for-sale

−

−

−

−

−

−

−

−

−

−

(reference) Fair Value of Real Estate (Land and Leaseholds)(Millions of yen)
As of March 31, 2011
Carrying value on
the balance sheets
163,749

Fair value
230,903

As of December 31, 2011
Carrying value on
the balance sheets

Gains(losses)
67,153

161,330

Fair value
226,424

Gains(losses)
65,093

Notes: 1. As of December 31, 2011, fair value is based on the appraisal value by the real-estate appraiser, the appraisal value for property tax
as of January 1, 2011 and the road rate as of January 1, 2011.
2. As of March 31, 2011, fair value is based on the appraisal value by the real-estate appraiser, the appraisal value for property tax
as of January 1, 2011 and the road rate as of January 1, 2010.

-5-

Fukoku Mutual Life Insurance Company

3. Non-consolidated Balance Sheets(Millions of yen)
As of March 31, 2011

Assets:Cash and deposits

As of December 31, 2011

237,823

21,191
105,800

Monetary claims bought

−
1,424

Money held in trust

33,16934,075

Call loans

Securities

1,368

3,778,639

3,979,697[1,695,927][1,913,128][Local government bonds][149,399][152,800][Corporate bonds][615,051][603,816][Stocks][379,416][346,921][Foreign securities][884,029][909,594]

1,143,863

1,063,972[Government bonds]

Loans
Policy loans

71,47969,278

Ordinary loans

1,072,383

994,694

Tangible fixed assets

284,670

277,432

Intangible fixed assets

8,765

8,193

Reinsurance receivables

170

16

Other assets

101,867

43,351

Deferred tax assets

87,33272,731

Allowance for possible loan losses(2,513)(2,367)

5,675,214

5,605,463

Total assets

As of March 31, 2011

Liabilities:
Policy reserves

5,216,576

Reserve for outstanding claims
Policy reserve
Reserve for dividends to policyholders
Reinsurance payables

As of December 31, 2011

5,248,438

31,053

20,386

5,132,317

5,167,300

53,20560,751

86

78

Subordinated bonds

35,21430,165

Other liabilities

125,256

40,171

Corporate income tax payable

10,850767

Asset retirement obligations

2,846

2,827

Other liabilities
Reserve for employees' retirement benefits

111,559

36,57650,10946,840Reserve for price fluctuation of securities

33,432

34,983

Deferred tax liabilities for revaluation reserve for land

19,936

16,197

5,480,612

5,416,875

Total liabilities
Net assets:
Foundation funds

40,00035,000

Accumulated foundation funds redeemed

46,00071,000Reserve for revaluation
Surplus

112

112

96,76361,437

Legal reserve for future losses

2,249

2,325

Other surplus

94,513

59,111

Reserve for redemption of foundation funds

20,000Reserve for dividend allowances

3,895

−
3,895

Reserve for advanced depreciation of real estate for tax purpose−
296

Other reserves

767

767

69,554

43,159

182,875

167,549

9,994

17,877

Accumulated fund for price fluctuation

Unappropriated surplus
Total foundation funds, surplus and others
Net unrealized gains (losses) on available-for-sale securities, net of tax
Deferred valuation gains (losses) under hedge accounting
Revaluation reserve for land, net of tax

11,000
289

365

239

1,366

2,921

Total valuation and translation adjustments

11,726

21,038

Total net assets

194,601

188,587

5,675,214

5,605,463

Total liabilities and net assets-6-

Fukoku Mutual Life Insurance Company

4. Non-consolidated Statements of Operations
Nine months ended
December 31, 2010
Ordinary revenues:
Premium and other income[Premium income]Investment income[Interest, dividends and other income][Gains from money held in trust, net]
[Gains on sales of securities][Gains from derivative instruments, net]
Other ordinary revenues[Reversal of reserve for outstanding claims][Reversal of policy reserve]
Total ordinary revenues
Ordinary expenditures:
Claims and other payments[Claims][Annuities][Benefits][Surrenders][Other payments]
Provision for policy reserve and others
Provision for policy reserve
Interest on accumulated dividends to policyholders
Investment expenses[Interest expenses][Losses from money held in trust, net]
[Losses from trading securities, net]
[Losses on sales of securities][Losses on valuation of securities][Losses from separate accounts, net]
Operating expenses
Other ordinary expenditures
Total ordinary expenditures
Ordinary profits
Extraordinary gains:
Gains on disposal of fixed assets
Reversal of allowance for possible loan losses
Total extraordinary gains
Extraordinary losses:
Losses on disposal of fixed assets
Impairment losses
Provision for reserve for price fluctuation of securities
Losses on reduction entry of real estate for tax purpose
Effect of applying the accounting standard for asset retirement obligations

Total extraordinary losses
Surplus before income taxes
Income taxes:
Current
Deferred
Total income taxes
Net surplus for the period-7-(Millions of yen)
Nine months ended
December 31, 2011

478,073[478,017]
115,389[80,772][474][19,482][14,516]
51,592[3,967][39,189]

443,960[443,757]
108,232[82,312][−][15,488][9,956]
18,676[10,666][−]

645,056

570,869

472,218[144,972][69,643][131,391][109,804][16,158]
90−
90
45,576[1,084][−][14,421][14,137][1,571][3,549]64,223
16,137368,737[113,009][71,882][93,191][70,462][19,981]35,04734,98363
56,515[990][950][3,575][11,925][21,868][5,654]65,25715,016598,246
46,809540,573
30,296

3
37

4,645

41

4,645

39
307
1,525

115
320
1,551
9

−
966

−

2,839
44,011−
1,996
32,944

11,685(1,215)
10,4697,768
11,526
19,29533,542

13,649

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 Mutual Life Insurance Company (the “Company”) in accordance with theprovisions set forth in the Insurance Business Law of Japan and its related rules and regulations andin 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 eliminated. As a result, total in yen shown herein
do not necessarily agree with the sum of the individual amounts.

II. Notes to Balance Sheet
1. Changes in Presentation
Effective for the nine months ended December 31, 2011, in accordance with the amendment of the
Enforcement Regulation of the Insurance Business Law, “reversal of allowance for possible loan
losses” reported on the statement of operations which was presented in “extraordinary gains” until
previous fiscal year is included in “investment income”.
2. Reserve for Dividends to Policyholders
Changes in reserve for dividends to policyholders for the nine months ended December 31, 2011 wereas follows:(Millions of yen)
Balance at the beginning of current period .................
Transfer from surplus in previous fiscal year ..............
Dividends paid in the current period ...........................
Increase in interest .....................................................
Balance at the end of current period ..........................

¥ 53,205
24,381(16,899)63¥ 60,751

3. Additional Foundation Funds
The Company raised additional foundation funds of ¥20,000 million during the nine months ended
December 31, 2011 in accordance with Article 60 of the Insurance Business Law.
4. Redemption of Foundation Funds
In the nine months ended December 31, 2011, in connection with the redemption of foundation fundsof ¥25,000 million, the Company reversed the reserve for redemption of foundation funds and provided
the equivalent amount for accumulated foundation funds redeemed in accordance with Article 56 of
the Insurance Business Law.
5. Effects of Changes in the Corporate Income Tax Rate
Following the promulgation of the “Act for Partial Amendment of the Income Tax Act, etc. for the
Purpose of Creating a Taxation System Responding to Changes in Economic and Social Structures”(Act No. 114, 2011) and the “Act on Special Measures for Securing Financial Resources Necessary to
Implement Measures for Reconstruction following the Great East Japan Earthquake” (Act No. 117,

-8-

Fukoku Mutual Life Insurance Company

2011) on December 2, 2011, the corporate income tax rate will be lowered from the fiscal year
beginning on April 1, 2012 and a special restoration surtax will be imposed from the fiscal year
beginning on April 1, 2012 through the fiscal year beginning on April 1, 2014. The effective statutory
tax rate used by the Company for the calculation of deferred tax assets and deferred tax liabilities willconsequently be changed from the current rate of 36.2% to 33.3% for a temporary difference which is
expected to be reversed in the period from April 1, 2012 to March 31, 2015, and 30.8% for a
temporary difference which is expected to be reversed after April 1, 2015. As a result of these changes,
deferred tax assets and deferred tax liabilities for revaluation reserve for land as of December 31, 2011
decreased by ¥12,049 million and ¥2,855 million, respectively.

-9-

Fukoku Mutual Life Insurance Company

5. Breakdown of Ordinary Profits (Fundamental Profit)
Nine months ended
December 31, 2010

(Millions of yen)
Nine months ended
December 31, 2011

A

50,55551,802

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

34,277278−
19,482
14,516−−37,828−18,94914,137
1,571
−
3,170
−
(3,551)47,004
−
−
−
−
194
−
194
−
−
−
−
(194)
46,80925,445−−
15,4889,956−−
46,532
1,065
9,140
11,925
21,868−2,532−(21,087)
30,715
−
−
−
−
418
−
70
96
−
−
251
(418)
30,296

Fundamental profit

Notes: 1. The following amounts in respect of gains / losses from money held in trust have been excluded from capital gains / losses andincluded in fundamental profit due to their income nature (being interest and dividend income): ¥195 million in respect of the ninemonths ended December 31, 2010 and ¥114 million in respect of the nine months ended December 31, 2011.
2. The following amounts in respect of gains / losses from trading securities have been excluded from capital gains / losses andincluded in fundamental profit due to the their income nature (being interest and dividend income): ¥4,528 million in respect of
the nine months ended December 31, 2010 and ¥5,565 million in respect of the nine months ended December 31, 2011.
3. For the nine months ended December 31, 2011, other non-recurring losses represent the losses relating to revision of theCompany's retirement benefit plans.

Breakdown of Fundamental Profit

Fundamental profit
Loading profit
Mortality and morbidity profit
Negative spread- 10 -

Nine months ended
December 31, 2010(100 millions of yen)
Nine months ended
December 31, 2011

505
31
568
(94)

518
10
582
(75)

Fukoku Mutual Life Insurance Company

6. Solvency Margin Ratio(Millions of yen)

As ofMarch 31, 2011

As of
December 31, 2011

593,497574,097

Foundation funds and surplus

156,224

147,544

Reserve for price fluctuation of securities

33,432

34,983

Contingency reserve

146,071

146,142

Allowance for possible loan losses

1,957

1,824

Net unrealized gains on available-for-sale securities x 90%(multiplied by 100% if losses)

14,101

23,243Net unrealized gains on real estate x 85%

73,176

68,330

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

103,984

110,912

Qualifying subordinated debt

35,21430,165

Deductible items(10,000)(19,000)

Others39,33429,950109,064

105,172

Total solvency margin

Total amount of risk(A)

( R1  R8 ) 2  R2  R3  R7   R4
2

(B)

Insurance risk

R1

28,48527,977

3rd sector insurance risk

R8

9,443

9,561

Assumed investment yield risk

R2

18,52818,318Investment risk

R380,78377,063Business risk

R4

2,745

2,658

Minimum guarantee risk

R7

11

11

1088.3%1091.7%

Solvency margin ratio(A)(1/2) x (B)x 100

Notes: 1. Above figures are calculated based on Articles 86 and 87 of the Enforcement Regulation of the Insurance Business Law and Ministry of
Finance Ordinance No. 50, 1996.
2. "Deductible items" represent the capital increase to the subsidiary, Fukokushinrai Life Insurance Co., Ltd.
3. "Minimum guarantee risk" is calculated by standard method.

- 11 -

Fukoku Mutual Life Insurance Company

(reference) Solvency Margin Ratio under the New Standards(Millions of yen)

As ofMarch 31, 2011

As of
December 31, 2011

581,306

561,906

Foundation funds and surplus

156,224

147,544

Reserve for price fluctuation of securities

33,432

34,983

Contingency reserve

146,071

146,142

Allowance for possible loan losses

1,957

1,824

Net unrealized gains on available-for-sale securities x 90%(multiplied by 100% if losses)

14,101

23,243Net unrealized gains on real estate x 85%

73,176

68,330

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

103,984

110,912

Qualifying subordinated debt

35,21430,165−−

Deductible items(10,000)(19,000)

Others27,14317,759173,928

165,769

Total solvency margin(A)

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   R4
2

(B)

Insurance risk

R1

28,48527,977

3rd sector insurance risk

R8

9,443

9,561

Assumed investment yield risk

R2

42,76042,285Investment risk

R3

122,801

115,163

Business risk

R4

4,069

3,899

Minimum guarantee risk

R7

7

8

668.4%

677.9%

Solvency margin ratio(A)(1/2) x (B)x 100

Notes: 1. In accordance with Cabinet Office Ordinance No.23, 2010 and Financial Services Agency Ordinance No.48, 2010, the standards for the
calculation of total solvency margin and total amount of risk are planned to be revised to tighten margin calculation and tighten andrefine risk measurements. The revised standards will be officially applied at the end of fiscal year ending March 31, 2012. The above
figures are calculated by applying the revised standards to the financial results as of March 31, 2011 and December 31, 2011.
2. "Deductible items" represent the capital increase to the subsidiary, Fukokushinrai Life Insurance Co., Ltd.
3. "Minimum guarantee risk" is calculated by standard method.

- 12 -

Fukoku Mutual Life Insurance Company

7. Status of Separate Account(1) Separate Account Assets by Products
As of March 31, 2011

(Millions of yen)
As of December 31, 2011

AmountAmountIndividual variable insurance−−

Individual variable annuities

538

488

Group annuities

82,742

74,252

Total

83,28074,741(2)Policies in Force(i) Individual Variable Insurance
The company has not sold the individual variable insurance.

(ii) Individual Variable Annuities
As of March 31, 2011
Number185

Individual annuities- 13 -

Amount594(Millions of yen)
As of December 31, 2011
Number177

Amount579

Fukoku Mutual Life Insurance Company

8. Status of the Company, Subsidiaries and Affiliates(1) Selected Financial Data

(Millions of yen)

Ordinary revenues
Ordinary profits
Net surplus for the period
Comprehensive income

Nine months ended
December 31, 2010

Nine months ended
December 31, 2011

1,057,234
48,90834,27922,600894,538
32,167
13,46725,319As ofMarch 31, 2011

Total assets

6,670,346

As ofDecember 31, 2011

6,900,936(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- 14 -

Fukoku Mutual Life Insurance Company

(3) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2011

Assets:Cash and deposits

As of December 31, 2011

314,392

92,218105,800

Monetary claims bought

−
1,424

Money held in trust

33,16934,075

Securities

4,681,280

5,189,236

Loans

1,146,719

1,066,924

Tangible fixed assets

284,863

277,618

Intangible fixed assets

15,712

14,451

4

3

Call loans

Agency receivables
Reinsurance receivables

1,368

174

21

Other assets

106,524

48,553

Deferred tax assets

88,74573,203

Allowance for possible loan losses
Total assets(2,665)(2,539)6,670,346

6,900,936

As of March 31, 2011

As of December 31, 2011

Liabilities:
Policy reserves
Reserve for outstanding claims
Policy reserve
Reserve for dividends to policyholders
Reserve for dividends to policyholders (subsidiary)
Agency payables

6,202,567

6,523,451

32,792

22,168

6,115,914

6,439,917

53,20560,751

654

613

1,685

1,494

Reinsurance payables

100

97

Subordinated bonds

35,21430,165

Other liabilities

129,127

52,493

Reserve for employees' retirement benefits

50,15346,895Reserve for price fluctuation of securities

33,86535,603

Deferred tax liabilities for revaluation reserve for land

19,936

16,197

Total liabilities

6,472,650

6,706,400

Net assets:
Foundation funds

40,00035,000

Accumulated foundation funds redeemed

46,00071,000Reserve for revaluation

112

112

Consolidated surplus

98,22862,720Total foundation funds, surplus and others

184,340

168,832

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

10,006

18,851

Deferred valuation gains (losses) under hedge accounting
Revaluation reserve for land, net of tax
Foreign currency translation adjustment

365

239

1,366

2,921

(761)

(835)

Total accumulated other comprehensive income

10,977

21,177

Minority interests

2,378

4,526

Total net assets
Total liabilities and net assets- 15 -

197,696

194,536

6,670,346

6,900,936

Fukoku Mutual Life Insurance Company

(4) Consolidated Statements of Operations and Comprehensive Income[Consolidated Statements of Operations](Millions of yen)
Nine months ended
December 31, 2010

Ordinary revenues:
Premium and other income
Investment income[Interest, dividends and other income][Gains from money held in trust, net]
[Gains on sales of securities][Gains from derivative instruments, net]
Other ordinary revenues[Reversal of reserve for outstanding claims]
Total ordinary revenues
Ordinary expenditures:
Claims and other payments[Claims][Annuities][Benefits][Surrenders][Other payments]
Provision for policy reserve and others
Provision for policy reserve
Interest on accumulated dividends to policyholders
Interest on accumulated dividends to policyholders (subsidiary)
Investment expenses[Interest expenses][Losses from money held in trust, net]
[Losses from trading securities, net]
[Losses on sales of securities][Losses on valuation of securities][Losses from separate accounts, net]
Operating expenses
Other ordinary expenditures
Total ordinary expenditures
Ordinary profits
Extraordinary gains:
Gains on disposal of fixed assets
Reversal of allowance for possible loan losses
Gain on change in equity
Total extraordinary gains
Extraordinary losses:
Losses on disposal of fixed assets
Impairment losses
Provision for reserve for price fluctuation of securities
Losses on reduction entry of real estate for tax purpose
Effect of applying the accounting standard for asset retirement obligations

Total extraordinary losses
Provision for reserve for dividends to policyholders (subsidiary)
Surplus before income taxes
Income taxes:
Current
Deferred
Total income taxes
Net surplus before minority interests
Minority interests
Net surplus for the period- 16 -

Nine months ended
December 31, 2011

920,042
124,212[89,521][474][19,555][14,516]
12,980[4,024]
1,057,234

751,984
123,327[95,389][−][17,535][9,956]
19,226[10,624]
894,538

481,859[146,483][69,775][133,430][115,456][16,310]
380,793
380,70290
045,265[1,096][−][14,421][14,185][1,571][3,549]82,44017,967
1,008,326
48,908385,331[114,656][72,041][97,583][80,503][20,204]
324,067
324,00363
058,784[1,001][950][3,575][13,328][23,105][5,654]
77,12817,058862,371
32,167

3
92
−
96

4,645
−
55
4,700

41
307
1,657
−
967
2,973
283
45,747

116
320
1,738
9
−
2,184
349
34,333

12,635(1,319)11,31634,431
152
34,2798,626
12,01920,646
13,686
218
13,467

Fukoku Mutual Life Insurance Company

(4) Consolidated Statements of Operations and Comprehensive Income (Continued)[Consolidated Statements of Comprehensive Income](Millions of yen)
Nine months ended
December 31, 2010

Net surplus before minority interests
Other comprehensive income
Net unrealized gains (losses) on available-for-sale securities, net of tax

Deferred valuation gains (losses) under hedge accounting
Revaluation reserve for land, net of tax
Foreign currency translation adjustment
Comprehensive income
Comprehensive income attributable to parent company
Comprehensive income attributable to minority interests- 17 -

34,431(11,831)(11,621)
(85)
−
(124)
22,60022,356243

Nine months ended
December 31, 2011

13,686
11,633
8,979
(125)
2,854
(74)
25,31924,966353

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 Mutual Life Insurance Company (the “Company”) and its consolidated
subsidiaries in accordance with the provisions set forth in the Insurance Business Law 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 eliminated. As a result, total in yen shown herein
do not necessarily agree with the sum of the individual amounts.

II. Notes to Balance Sheet
1. Changes in Presentation
Effective for the nine months ended December 31, 2011, in accordance with the amendment of the
Enforcement Regulation of the Insurance Business Law, “reversal of allowance for possible loan
losses” reported on the statement of operations which was presented in “extraordinary gains” until
previous fiscal year is included in “investment income”.
2. Reserve for Dividends to Policyholders
Changes in reserve for dividends to policyholders for the nine months ended December 31, 2011 wereas follows:(Millions of yen)
Balance at the beginning of current period .................
Transfer from surplus in previous fiscal year ..............
Dividends paid in the current period ...........................
Increase in interest .....................................................
Balance at the end of current period ..........................

¥ 53,205
24,381(16,899)63¥ 60,751

3. Reserve for Dividends to Policyholders (Fukokushinrai Life Insurance Company)
Changes in reserve for dividends to policyholders for the nine months ended December 31, 2011 wereas follows:(Millions of yen)
Balance at the beginning of current period .................
Dividends paid in the current period ...........................
Increase in interest .....................................................
Provision for reserve for dividends to policyholders ...
Balance at the end of current period ..........................

¥ 654
(390)
0
349
¥ 613

4. Additional Foundation Funds
The Company raised additional foundation funds of ¥20,000 million during the nine months ended
December 31, 2011 in accordance with Article 60 of the Insurance Business Law.

- 18 -

Fukoku Mutual Life Insurance Company

5. Redemption of Foundation Funds
In the nine months ended December 31, 2011, in connection with the redemption of foundation fundsof ¥25,000 million, the Company reversed the reserve for redemption of foundation funds and provided
the equivalent amount for accumulated foundation funds redeemed in accordance with Article 56 of
the Insurance Business Law.
6. Effects of Changes in the Corporate Income Tax Rate
Following the promulgation of the “Act for Partial Amendment of the Income Tax Act, etc. for the
Purpose of Creating a Taxation System Responding to Changes in Economic and Social Structures”(Act No. 114, 2011) and the “Act on Special Measures for Securing Financial Resources Necessary to
Implement Measures for Reconstruction following the Great East Japan Earthquake” (Act No. 117,2011) on December 2, 2011, the corporate income tax rate will be lowered from the fiscal year
beginning on April 1, 2012 and a special restoration surtax will be imposed from the fiscal year
beginning on April 1, 2012 through the fiscal year beginning on April 1, 2014. The effective statutory
tax rate used by the Company for the calculation of deferred tax assets and deferred tax liabilities willconsequently be changed from the current rate of 36.2% to 33.3% for a temporary difference which is
expected to be reversed in the period from April 1, 2012 to March 31, 2015, and 30.8% for a
temporary difference which is expected to be reversed after April 1, 2015. As a result of these changes,
deferred tax assets and deferred tax liabilities for revaluation reserve for land as of December 31, 2011
decreased by ¥12,071 million and ¥2,855 million, respectively.

III. Notes to Statement of Operations
1. Depreciation and Amortization of Goodwill
For the nine months ended December 31, 2011, the total amount of depreciation and depreciation ofreal estate for rent and other assets was ¥9,096 million and the amount of amortization of goodwill
was ¥572 million.

- 19 -

Fukoku Mutual Life Insurance Company