November 21, 2023

Financial Results for the Six Months Ended September 30, 2023
Asahi Mutual Life Insurance Company (the “Company”; President: Hiroki Kimura) announces
financial results for the six months ended September 30, 2023.

［Contents］
１．Business Highlights

･････

Ｐ1

２．Investment Results of General Account Assets

･････

Ｐ3

３．Unaudited Non-consolidated Balance Sheets

･････

Ｐ7

４．Unaudited Non-consolidated Statements of Income

･････

Ｐ8

５．Unaudited Non-consolidated Statements of Changes in Net Assets

･････

Ｐ9

６．Breakdown of Ordinary Profit (Fundamental Profit)

･････

Ｐ27

７．Disclosed Claims Based on Insurance Business Act

･････

Ｐ28

８．Solvency Margin Ratio

･････

Ｐ29

９．Status of Separate Account

･････

Ｐ30

10．Status of the Company, Subsidiaries and Affiliates

･････

Ｐ31

Asahi Mutual Life Insurance Company

１．Business Highlights(1) Sum Insured of Policies in Force and New Policies(i) Policies in Force
As of March 31, 2023
Number of policies

As of September 30, 2023

Amount (100 millions of Yen)

(Thousands)

Number of policies

Amount (100 millions of Yen)

(Thousands)

Changes(%, Pre-FYE)

Changes(%, Pre-FYE)

Individual insurance

7,347

115,128

7,284

99.1

110,52996.0

Individual annuities452

18,199441

97.5

17,66797.1

Group insurance-

14,103--

14,899105.6

Group annuities

-

124

-

-

120

96.4

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 which annuity payments have not yet commenced and (b) the amount of policy reserves for an annuity for which payments havecommenced.
2. Policy amount in force for group annuities is equal to the amount of outstanding policy reserves.
3. Number of policies includes number of each unit with regard to "Hoken-ou" , "Hoken-ou Plus", etc.

(ii) New Policies
Six months ended September 30, 2022
Number of policies

Amount (100 millions of Yen)
New
policies(Thousands)

Net increase by
conversion

Individual insurance

343

1,005

1,586

(581)

Individual annuities

-

(21)

-

(21)

Group insurance

-

181

181

-

Group annuities

-

-

-

-

Six months ended September 30, 2023
Number of policies(Thousands)

Amount (100 millions of Yen)

Changes(%, YoY)

Changes(%, YoY)

New
policies

Net increase by
conversion

Individual insurance

324

94.5

728

72.5

1,352

(623)

Individual annuities

-

-

(18)

-

-

(18)

Group insurance

-

-

941

520.0

941

-

Group annuities

-

-

-

-

-

-

Notes:
1. Number of new policies is the sum of new policies and policies after conversion.
2. Amount of new policies for individual annuities, both new policies and net increase by conversion, is equal to the funds to be held at thetime annuity payments are to commence.
3. Number of policies includes number of each unit with regard to "Hoken-ou" , "Hoken-ou Plus", etc.

1Asahi Mutual Life Insurance Company

(2) Annualized Premiums(i) Policies in Force(100 millions of Yen）

As of March 31, 2023

As of September 30, 2023
Changes(%, Pre-FYE)

Individual insurance

3,743

3,679

98.3

Individual annuities

1,173

1,150

98.0

Total

4,917

4,829

98.2

2,235

2,218

99.2

Third-sector products(ii) New Policies(100 millions of Yen）

Six months ended
September 30, 2022

Six months ended
September 30, 2023

Changes(%, YoY)

Individual insurance

103

96

92.8

Individual annuities

(0)

(0)

-

103

96

92.8

84

79

93.9

Total
Third-sector products

Notes:
1. Annualized premiums are calculated by multiplying factors according to the premium payment method (for single premium contracts, theamount is calculated by dividing the premium by the coverage period).
2. Figures for third-sector products represent portion of annualized premiums corresponding to the medical benefits (hospitalization benefits,surgery benefits, etc.), living benefits (specific illness benefits, nursing care benefits, etc.) and waiver benefits (excluding disability benefits,
but including specific illness benefits and nursing care benefits).

2

Asahi Mutual Life Insurance Company

2. Investment Results of General Account Assets(1) Asset Composition(Millions of Yen)

Cash, deposits, call loans
Monetary claims bought

As of March 31, 2023

As of September 30, 2023

AmountAmountPercentage

207,394

3.9

Percentage

103,977

2.0

20,2920.4

19,3820.4

4,277,590

81.3

4,364,498

83.3

Domestic bonds

2,609,731

49.6

2,705,952

51.6

Domestic stocks

507,674

9.7

570,420

10.9

Foreign securities

1,088,201

20.7

1,009,384

19.3

Foreign bonds

705,216

13.4

589,750

11.3

Foreign stocks and other foreign securities

382,9857.3

419,634

8.0

71,982

1.4

78,740

1.5

Securities

Other securities
Loans

303,9615.8

309,317

5.9

Policy loans

30,2540.6

29,3680.6

Industrial and consumer loans

273,7075.2

279,949

5.3

355,384

6.8

352,277

6.7

Deferred tax assets

5,690

0.1

-

-

Others89,543

1.7

92,320

1.8

(648)

(0.0)

(663)

(0.0)

5,259,210

100.0

5,241,110

100.0

1,140,112

21.7

965,580

18.4

Real estate

Allowance for possible loan losses
Total
Foreign currency-denominated assets

Note: Real estate is the sum of land, buildings and construction in progress.

(2) Changes (Increases/Decreases) in Assets(Millions of Yen)

Six months ended
September 30, 2022

Six months ended
September 30, 2023

AmountAmountCash, deposits, call loans(44,625)(103,417)

Monetary claims bought(1,252)(910)

Securities(120,068)

86,907

Domestic bonds

65,35696,221

Domestic stocks(19,855)

62,745

Foreign securities(161,771)(78,817)

Foreign bonds(203,884)(115,466)

42,11336,649Foreign stocks and other foreign securities
Other securities(3,798)

6,758(18,808)

5,355

Policy loans(1,085)(886)

Industrial and consumer loans(17,722)6,241(2,319)(3,107)

Deferred tax assets

21,109(5,690)

Others(13,532)

2,777

(162)

(15)

Loans

Real estate

Allowance for possible loan losses
Total
Foreign currency-denominated assets(179,661)(18,099)(125,599)(174,531)

Note: Real estate is the sum of land, buildings and construction in progress.

3

Asahi Mutual Life Insurance Company

（3）Investment Income(Millions of Yen)

Six months ended
September 30, 2022
61,896

Interest, dividends and other income
Interest on deposits

Six months ended
September 30, 2023
60,35500Interest and dividends on securities

50,99648,493

Interest on loans

2,417

2,912

Rent revenue from real estate

8,046

8,039

Other interest and dividends

436

909

10,764

7,201

3,742

3,156

800

2,340

6,221

1,704

-

-

Gains on redemption of securities

98-

Gains on derivative financial instruments, net

-

-

4,437

3,977

Gains on sales of securities
Gains on sales of domestic bonds
Gains on sales of domestic stocks and other securities
Gains on sales of foreign securities
OthersForeign exchange gains, net
Reversal of allowance for possible loan losses

-

-

3,515

3,598

80,71175,131

Six months ended
September 30, 2022
1,834

Six months ended
September 30, 2023
2,504

Losses on trading securities-

206

Losses on sales of securities

16,91329,835

2,628

5,571

577

499

13,707

23,764--

Other investment income
Total（4）Investment Expenses(Millions of Yen)

Interest expenses

Losses on sales of domestic bonds
Losses on sales of domestic stocks and other securities
Losses on sales of foreign securities
Others
Losses on valuation of securities

2

1

Losses on valuation of domestic bonds--

Losses on valuation of domestic stocks and other securities-

0

Losses on valuation of foreign securities

20

Others

-

-

466

275

8,156

11,551

-

-

145

13

0

0

Depreciation of rental real estate and other assets

2,779

2,735

Other investment expenses

5,578

5,202

35,87652,326

Losses on redemption of securities
Losses on derivative financial instruments, net
Foreign exchange losses, net
Provision for allowance for possible loan losses
Write-offs of loans

Total

4

Asahi Mutual Life Insurance Company

(5) Net Valuation Gains/Losses on Trading Securities(Millions of Yen)

As of March 31, 2023
AmountTrading securities

As of September 30, 2023

Net valuation
gains (losses)
included in thestatements of income-

AmountNet valuation
gains (losses)
included in thestatements of income-(6) Fair Value Information on Securities (other than trading securities)(Millions of Yen)

As of March 31, 2023
Book value Fair value

As of September 30, 2023

Gains/losses
Gains

Held-to-maturity debt
securities
Policy-reserve-matchingbonds
Stocks of subsidiaries

Losses288,832

312,438

23,60523,661

2,093,763

2,109,209

15,445

129,585

-

-

-

-

Available-for-sale securities 1,626,794

1,786,581

159,786

293,373

Domestic bonds

417,814401,531(16,283)

2,292

Domestic stocks

173,309431,919

258,609

Foreign securities

963,085

881,997(81,087)

Foreign bonds
Foreign stocks andother foreign securities
Other securities

623,607550,216

339,477

Monetary claims bought
Negotiable certificates ofdeposit
Others
Total

Gains/losses

Book value Fair value

(56)

Gains

Losses

302,474

317,956

15,481

17,630(2,148)(114,139) 2,206,701

2,103,518(103,182)

88,721(191,904)

-

-

-

-

-

(133,587) 1,489,466-

1,733,796

244,329354,402(110,072)(13,898)(18,575)

402,220

389,912(12,308)

1,590

268,691(10,081)

174,532

489,680

315,148

318,188(3,040)19,885(100,973)

837,300

776,502(60,797)

29,560(90,358)(73,390)

1,744(75,134)

482,821415,150(67,671)285(67,956)

331,781(7,696)18,141(25,838)

354,479

361,352

6,873

29,275(22,402)

71,79370,235(1,557)

2,399(3,956)

74,63976,853

2,213

4,984

(2,770)

792

897

105

105

-

772

846

73

77

(3)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

4,009,390

4,208,228

198,837446,620(247,782) 3,998,643

4,155,271

156,628

460,754(304,125)

Domestic bonds

2,626,015

2,628,326

2,311

135,049(132,738) 2,718,260

2,604,504(113,756)

92,218(205,975)

Domestic stocks

173,309431,919

258,609268,691(10,081)

174,532

489,680

315,148

318,188(3,040)Foreign securities

1,118,085

1,055,559(62,525)

38,448(100,973) 1,011,900

963,383(48,517)

43,733(92,251)

Foreign bonds
Foreign stocks andother foreign securities
Other securities

778,607

723,778(54,828)

20,306(75,134)

657,421602,030(55,390)

14,458(69,849)

339,477

331,781(7,696)18,141(25,838)

354,479

361,352

6,873

29,275(22,402)

71,79370,235(1,557)

2,399(3,956)

74,63976,853

2,213

4,984

(2,770)

Monetary claims bought
Negotiable certificates ofdeposit
Others

20,18722,187

1,999

2,032

(33)

19,30920,849

1,540

1,628

(87)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Notes:
1. The table above includes assets which are considered appropriate to deem as securities under the Financial Instruments and Exchange Act.
2. The table above excludes stocks, investments in partnerships and others without a market price.

* Book value of stocks, investments in partnerships and others without a market price is as follows:(Millions of Yen)
As of March 31, 2023 As of September 30, 2023

Stocks of subsidiaries

62,621

67,671

Available-for-sale securities

59,77061,102

Domestic stocks

13,134

13,118Foreign stocks

11

10

Others46,62547,974

Total

122,391

128,774

5

Asahi Mutual Life Insurance Company

(Reference)
Fair value information on securities including stocks, investments in partnerships and others without a market price is as follows:(Millions of Yen)

As of March 31, 2023
Book value Fair value
Gains/losses
Gains
Held-to-maturity debt
securities
Policy-reserve-matching
bonds

Losses288,832

312,438

23,60523,661

2,093,763

2,109,209

15,445

129,585

62,62162,621--

Available-for-sale securities 1,686,565

1,852,666

166,100

299,693

Stocks of subsidiaries

As of September 30, 2023
Book value Fair value
Gains/losses
(56)

Gains

Losses

302,474

317,956

15,481

17,630(2,148)(114,139) 2,206,701

2,103,518(103,182)

88,721(191,904)

67,671

67,671---(133,592) 1,550,569

1,807,033

256,464

366,536(110,072)-

Domestic bonds

417,814401,531(16,283)

2,292(18,575)

402,220

389,912(12,308)

1,590(13,898)

Domestic stocks

186,443445,053

258,609268,691(10,081)

187,650

502,799

315,148

318,188(3,040)Foreign securities

1,007,974

933,201(74,773)

26,205(100,978)883,398

834,734(48,663)

41,694(90,358)

Foreign bonds

623,607550,216(73,390)

1,744(75,134)

482,821415,150(67,671)285(67,956)

Foreign stocks andother foreign securities

384,367

382,985(1,382)

24,461(25,844)

400,576

419,584

19,00741,409(22,402)73,53971,982(1,557)

2,399(3,956)76,52778,740

2,213

4,984

(2,770)

Monetary claims bought

792

897

105

105

-

772

846

73

77

(3)

Negotiable certificates ofdeposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

-

4,131,782

4,336,935

205,152

452,940(247,788) 4,127,417

4,296,180

168,762

472,888(304,125)

Domestic bonds

2,626,015

2,628,326

2,311

135,049(132,738) 2,718,260

2,604,504(113,756)

92,218(205,975)

Domestic stocks

249,065

507,674

258,609268,691(10,081)255,272

570,420

315,148

318,188(3,040)Foreign securities

1,162,974

1,106,764(56,210)44,768(100,978) 1,058,048

1,021,665(36,383)

55,868(92,251)

Foreign bonds

778,607

723,778(54,828)

20,306(75,134)

657,421602,030(55,390)

14,458(69,849)

Foreign stocks andother foreign securities

384,367

382,985(1,382)

24,461(25,844)

400,627

419,634

19,00741,409(22,402)

Other securities

73,53971,982(1,557)

2,399(3,956)76,52778,740

2,213

4,984

(2,770)

Monetary claims bought

20,18722,187

1,999

2,032

(33)

19,30920,849

1,540

1,628

(87)

Negotiable certificates ofdeposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

-

Other securities

Total

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

（7）Fair Value Information on Money Held in Trust
The Company doesn't hold money held in trust.

（8）Fair Value Information on Real estate (land)(Millions of Yen)

As of March 31, 2023

As of September 30, 2023

Book value Fair value Gains/losses Book value Fair value Gains/losses

Land

216,699

291,263

74,564215,920

290,547

74,627

Notes:
1. Fair Value is calculated based on appraisal value for property tax and others.
2. The amount above includes leasehold.

6

Asahi Mutual Life Insurance Company

3. Unaudited Non-consolidated Balance Sheets
Assets:Cash and deposits
Call loans
Monetary claims bought
Securities:
National government bonds
Local government bonds
Corporate bonds
Domestic stocks
Foreign securities
Loans:
Policy loans
Industrial and consumer loans
Tangible fixed assets
Intangible fixed assets
Agency accounts receivable
Reinsurance receivables
Other assets
Prepaid pension cost
Deferred tax assets
Customers’ liabilities under acceptances and guarantees
Allowance for possible loan losses
Total assets

Liabilities:
Policy reserves and other reserves:
Reserve for outstanding claims
Policy reserves
Reserve for dividends to policyholders
Reinsurance payables
Bonds payable
Other liabilities:
Income taxes payable
Lease obligations
Asset retirement obligations
OthersReserve for employees’ retirement benefits
Reserve for price fluctuation
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Acceptances and guarantees
Total liabilities
Net assets:
Foundation funds
Reserve for redemption of foundation funds
Reserve for revaluation
Surplus:Reserve for future losses
Other surplus:
Reserve for fund redemption
Equalized reserve for dividends to policyholders
Unappropriated surplus (loss)
Total foundation funds and others
Net unrealized gains (losses) on available-for-sale securities, net of tax
Deferred gains (losses) on derivatives under hedge accounting
Land revaluation differences
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

7(Millions of Yen)
As of March 31, 2023

As of September 30, 2023

41,673
166,000
20,292
4,303,789
1,693,184
50,610865,936
507,674
1,088,201
303,961
30,254
273,707359,493
33,4976
687
50,226
424
5,690
600
(648)
5,285,695

36,26968,00019,382
4,392,407
1,780,843
48,048877,061
570,420
1,009,384
309,317
29,368279,949
356,00735,365
3
134
40,295376
12,420(663)
5,269,317(Millions of Yen)

As of March 31, 2023

As of September 30, 2023

4,331,522
34,5134,269,904
27,103700
150,555
290,565
133
1,360
967
288,105
28,727
38,21015,062600
4,855,944

4,273,222
34,206
4,211,050
27,965
298
102,609275,306
560
1,158
958
272,629
28,76139,29019,276
14,914
12,4204,766,099

51,000206,000
281
90,207366
89,841
22,6007,093
60,148347,489
130,668(48,406)
82,261
429,751
5,285,695

51,000206,000
281
97,031381
96,65031,700
6,893
58,057354,313
196,518
1,173(48,788)
148,903503,217
5,269,317

Asahi Mutual Life Insurance Company

4. Unaudited Non-consolidated Statements of Income
Six months ended
September 30, 2022
Ordinary income:Premium and other income:Insurance premiums
Investment income:Interest, dividends and other income
Gains on sales of securities
Investment gains on separate accounts
Other ordinary income
Ordinary expenses:
Claims and other payments:
ClaimsAnnuities
Benefits
Surrender benefits
Other payments
Provision for policy reserves and other reserves:

325,510
188,630
188,073
80,711
61,896
10,76456,168
307,429
197,201
53,25852,991
48,606
40,117
1,237
4,573
4,571
1
36,826
1,834
16,913
2
8,156
949
52,214
16,61318,080242
1,908
16,415
2,987
2,987
13,427

Provision for reserve for outstanding claims
Provision for interest on policyholders’ dividend reserves
Investment expenses:
Interest expenses
Losses on trading securities
Losses on sales of securities
Losses on valuation of securities
Losses on derivative financial instruments
Investment losses on separate accounts
Operating expenses
Other ordinary expenses
Ordinary profit
Extraordinary gains
Extraordinary losses
Surplus before income taxes
Income taxes including deferred taxes
Total income taxes
Net surplus

8(Millions of Yen)
Six months ended
September 30, 2023
324,329
183,248
182,647
77,89060,3557,201
2,759
63,189308,266
185,899
52,21351,58836,67543,0531,332
1
152,3262,504
206
29,835
1
11,55154,084
15,954
16,062
206
1,589
14,6793,417
3,417
11,262Asahi Mutual Life Insurance Company

５．Unaudited Non-consolidated Statements of Changes in Net Assets
Six months ended September 30, 2022

(Millions of Yen)
Foundation funds and others
Surplus

Beginning balance

Foundation
funds

Reserve forredemption offoundation
funds

Reserve forrevaluation

91,000166,000

281

Total
surplusTotal
foundation
funds andothers56,614

117,444374,726(2,121)(2,121)(2,121)Other surplus
Reserve for
future losses

Reserve forfund
redemption

Equalized
reserve fordividends topolicyholders

Unappropriatedsurplus(loss)

347

53,500

6,983

Changes in the interim period:
Additions to reserve for dividends topolicyholders

19

Additions to reserve for future losses
Additions to reserve for redemptionof foundation funds

40,000(19)(40,000)(40,000)

Payment of interest on foundation
funds(4,040)(4,040)(4,040)Net surplus

13,427

13,427

13,427

Redemption of foundation funds(40,000)(40,000)

Additions to reserve for fundredemption

9,100

Additions to equalized reserve fordividends to policyholders(9,100)110

Reversal of land revaluationdifferences

(110)
308

308

308

Net changes, excluding foundation
funds and others
Net changes in the interim period(40,000)

40,000-19(30,900)

110(1,654)(32,425)(32,425)

Ending balance

51,000206,000

281

366

22,600

7,093

54,96085,019342,301

Total
valuation andtranslation
adjustments

Total
net assets

127,197

501,923

Valuation and translation adjustments
Net unrealized
gains (losses)
on availablefor-salesecurities,
net of tax
Beginning balance

173,936Land
revaluationdifferences(46,739)

Changes in the interim period:
Additions to reserve for dividends topolicyholders(2,121)

Additions to reserve for future losses
Additions to reserve for redemptionof foundation funds
Payment of interest on foundation
funds(4,040)Net surplus

13,427

Redemption of foundation funds(40,000)

Additions to reserve for fundredemption
Additions to equalized reserve fordividends to policyholders
Reversal of land revaluationdifferences
Net changes, excluding foundation
funds and others

308(67,852)(308)(68,160)(68,160)

Net changes in the interim period(67,852)(308)(68,160)(100,586)

Ending balance

106,083(47,047)

59,036401,337

9

Asahi Mutual Life Insurance Company

Six months ended September 30, 2023

(Millions of Yen)
Foundation funds and others
Surplus

Beginning balance

Foundation
funds

Reserve forredemption offoundation
funds

Reserve forrevaluation

51,000206,000

281

Other surplus

Total
foundation
funds andothersReserve for
future losses

Reserve forfund
redemption

Equalized
reserve fordividends topolicyholders

Unappropriatedsurplus(loss)

366

22,6007,093

60,14890,207

347,489(2,497)(2,497)(2,497)

Total
surplus

Changes in the interim period:
Additions to reserve for dividends topolicyholders

15

Additions to reserve for future losses(15)

Payment of interest on foundation
funds(2,323)(2,323)(2,323)

Net surplus

11,262

11,262

11,262

382

382

382

Additions to reserve for fundredemption

9,100

Reversal to equalized reserve fordividends to policyholders(9,100)(199)

Reversal of land revaluationdifferences

199

Net changes, excluding foundation
funds and others
Net changes in the interim periodEnding balance

-

-

-

15

9,100

(199)

(2,090)

6,824

6,824

51,000206,000

281

381

31,700

6,893

58,057

97,031

354,313

Total
valuation andtranslation
adjustments

Total
net assets

82,261

429,751

Valuation and translation adjustments

Beginning balance

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

Deferred gains(losses) on
derivatives
under hedge
accounting

130,668-Land
revaluationdifferences(48,406)

Changes in the interim period:
Additions to reserve for dividends topolicyholders(2,497)

Additions to reserve for future losses
Payment of interest on foundation
funds(2,323)

Net surplus

11,262

Additions to reserve for fundredemption
Reversal to equalized reserve fordividends to policyholders
Reversal of land revaluationdifferences
Net changes, excluding foundation
funds and others

382
65,850

1,173

(382)

66,642

66,642

Net changes in the interim period

65,850

1,173

(382)

66,642

73,466

Ending balance

196,518

1,173(48,788)

148,903503,217

10

Asahi Mutual Life Insurance Company

I.

Presentation of Unaudited Non-consolidated Financial Statements

Basis of Presentation
The accompanying interim non-consolidated financial statements have been prepared from the accounts
maintained by Asahi Mutual Life Insurance Company (the “Company”) in accordance with the provisions set
forth in the Insurance Business Act of Japan and its related rules and regulations applicable to the mutual life
insurance industry and in conformity with semi-annual 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 interim non-consolidated financial statements include information which is not
required under semi-annual 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 amounts in yen shown herein do
not necessarily agree with the sum of the individual amounts.
The Insurance Business Act shall prescribe the disclosure of a single fiscal year. The Company provides thedisclosure of comparative financial information corresponding to each comparative fiscal year in the presented
financial statements for use by readers outside Japan.
In preparing the accompanying interim non-consolidated financial statements, certain reclassifications havebeen made to the non-consolidated financial statements issued domestically in order to present them in a format
which is more familiar to readers outside Japan.

II. Notes to Unaudited Non-consolidated Balance Sheet
1.

Significant Accounting Policies(1) Valuation methods of securities
The valuation of securities, including deposits and monetary claims bought which are equivalent tosecurities is as follows:i)

Trading securities are stated at fair market value. Costs of sales are determined by the moving
average method.

ii)

Held-to-maturity debt securities are stated at amortized cost (straight-line method) determined by
the moving average method.

iii) Policy-reserve-matching bonds, which are 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(“JICPA”)), are stated at amortized cost (straight-line method) determined by the moving averagemethod.
iv)

Investments in subsidiaries and affiliates are stated at cost.

11

Asahi Mutual Life Insurance Company

v)

Available-for-sale securities except for the following are stated at fair market value based on themarket prices at the balance sheet date, of which costs of sales are determined by the moving
average method. Available-for-sale securities, of which public and corporate bonds including
foreign bonds with the difference between acquisition cost and face value considered as an
adjustment of interest, are stated at amortized cost (straight-line method) determined by the moving
average method. Stocks and others without a market price are stated at cost determined by themoving average method. Net unrealized gains or losses on these available-for-sale securities, net oftax, are recorded as a separate component of net assets.

(2) Policy-reserve-matching bonds
The Company classifies bonds held with the aim of matching the duration to outstanding insurance
liabilities within the sub-groups (categorized by insurance type, investment policy and other factors) ofindividual life insurance and individual annuities as policy-reserve-matching bonds in accordance with
“Temporary Treatment of Accounting and Auditing Concerning Policy-reserve-matching Bonds inInsurance Industry” (Industry Audit Committee Report No. 21 issued by the JICPA).
(3) Valuation methods of derivative financial instruments
Derivative financial instruments are stated at fair market value.
(4) Revaluation of land
The Company revalued the land for business purposes based on the Act on Revaluation of Land (Act No.
34 promulgated on March 31, 1998). The difference between fair value and book value resulting fromthe revaluation, net of related taxes, is recorded as land revaluation differences as a separate componentof net assets and the related tax is recorded as deferred tax liabilities for revaluation.
■

Date of revaluation: March 31, 2001■

Method of revaluation as prescribed for in Article 3, Paragraph 3 of the said Act:The calculation is based on the publicly announced appraisal value with certain adjustments set
forth in Article 2, Item 1 of the Enforcement Ordinance of the Act on Revaluation of Land
(Government Ordinance No. 119 promulgated on March 31, 1998) or the appraisal value
determined by the real-estate appraiser set forth in Article 2, Item 5 of the said Ordinance withcertain reasonable adjustments.

(5) Depreciation of tangible fixed assets
Depreciation of the Company’s tangible fixed assets is calculated by the following methods.
(For the interim reporting purposes, the amount for the semi-annual period is determined.)■

Tangible fixed assets (excluding lease assets): Declining-balance method
However, buildings are depreciated using the straight-line method.

■

Lease assets related to finance lease transactions that do not transfer ownership: Straight-line
method over the lease term with no residual value

12

Asahi Mutual Life Insurance Company

(6) Foreign currency translation
Foreign currency-denominated assets and liabilities are translated into Japanese yen at the effective
exchange rate prevailing at the balance sheet date.
(7) Allowance for possible loan losses
Allowance for possible loan losses is provided in accordance with the Company’s standards of selfassessment and write-offs and reserves on credit quality:i)

For credit to borrowers who are legally bankrupt such as being in bankruptcy proceedings or civil
rehabilitation (hereinafter “legally bankrupt borrowers”) and who are substantially bankrupt(hereinafter “substantially bankrupt borrowers”), the Company provides the remaining amount ofcredits after the direct write-off described below and the deductions of the amount expected to becollected through the disposal of collateral or the execution of guarantees.

ii)

For credit to borrowers who are not currently bankrupt but have a high risk of bankruptcy(hereinafter “borrowers with high possibility of bankruptcy”), the Company provides the amounts
deemed as necessary considering the borrowers’ ability to pay, within the amounts after deductionsof the amount expected to be collected through the disposal of collateral or the execution ofguarantees.

iii) For credit to borrowers other than the above, the Company provides the amounts calculated bymultiplying the book value by the actual ratio of bad debt losses on defaults during a certain past
period.
All credit is assessed by the relevant departments in accordance with the Company’s standards of selfassessment on credit quality. The results of the assessment are reviewed by the audit department, whichis independent of business-related divisions. Subsequently, allowance for possible loan losses is provided
based on the results of these assessments.
For credit to 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 from the book value as the estimated uncollectible amounts. The amount written-off
was ¥3 million as of September 30, 2023.
(8) Accounting for employees’ retirement benefits and method of amortizing retirement benefit expenses
Reserve for employees’ retirement benefits and prepaid pension cost are presented for the employees’
retirement benefits based on projected benefit obligation and pension plan assets at the balance sheet date.
The Company uses the following methods of accounting in relation to retirement benefits.
■

The retirement benefit obligation is attributed to each period by the benefit formula method.

■

Actuarial differences are amortized under the straight-line method over a period of six years starting
the following year.

■

Prior service cost is charged to income when incurred.

13

Asahi Mutual Life Insurance Company

(9) Reserve for price fluctuation
Reserve for price fluctuation is calculated in accordance with Article 115 of the Insurance Business Act.
(10) Accounting for hedging activities
Hedging activities are accounted for in accordance with the “Accounting Standards for Financial
Instruments” (Accounting Standards Board of Japan (“ASBJ”) Statement No. 10).
The Company mainly applies the following hedging activities:
The Company applies deferred hedge accounting and the exceptional accounting treatment (“Tokureishori”) for interest rate swaps used to hedge the cash flow volatility of certain loans.
The Company also applies fair value hedge accounting for hedging activities related to foreign exchange
rate fluctuation exposures on certain bonds, investment trusts and others denominated in foreign
currencies.
The Company also applies deferred hedge accounting using equity forward contracts for hedging
activities related to price fluctuation exposures on certain domestic stocks.
The Company also applies designated hedge accounting (“Furiate-shori”) for currency swaps used tohedge foreign exchange rate fluctuation exposures on the foreign currency-denominated bonds issued by
the Company.
The Company also applies designated hedge accounting (“Furiate-shori”) for the foreign currencydenominated transactions other than the above.
The effectiveness of a hedge is mostly assessed by a ratio analysis, comparing the fluctuations in the fairvalue or cash flows of hedged items and hedging instruments.
(11) Accounting for consumption taxes
The Company accounts for consumption tax and local consumption tax by the tax-exclusion method. The
consumption taxes on certain assets, which are not deductible from consumption taxes withheld and thatare stipulated to be deferred under the Corporation Tax Act of Japan, are deferred as other assets andamortized equally over five years.
Consumption taxes other than deferred consumption taxes are recognized as an expense for the current
interim period.
(12) Group tax sharing system
The Company has applied the group tax sharing system.

14

Asahi Mutual Life Insurance Company

(13) Premium and other income (excluding reinsurance revenue)
Premium and other income (excluding reinsurance revenue) are recorded in principle for insurance
policies for which insurance premium has been received and the insurer’s liability under the insurance
policies or insurance coverage period has commenced by the relevant amounts received.
Of insurance premiums, the portion corresponding to the period that has yet to pass as of the end of theinterim period is set aside as policy reserves in accordance with Article 116 of the Insurance BusinessAct and Article 69, Paragraph 1, Item 2 of the Enforcement Regulation of the Insurance Business Act.
(14) Claims and other payments (excluding reinsurance premiums)
Claims and other payments (excluding reinsurance premiums) are recorded for insurance policies forwhich amounts calculated under policy conditions have been paid in the occurrence of insured events
under 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 is set aside for claims, etc.
which is not recorded as payment of claims, etc. but for which the Company has payment obligation or
the occurrence of insured events has not been reported but the Company finds that insured events havealready occurred, as of the end of the interim period.
With respect to reserve for outstanding claims incurred but not reported events (referring to claims forwhich the occurrence of the insured events has not been reported but the Company finds that insured
events have already occurred; hereinafter the same), the special treatment of the payment of
hospitalization benefits with regard to people with diagnoses of COVID-19 given and under the care ofa doctor and the like at an accommodation facility or at home (“deemed hospitalizations”) was terminatedon May 8, 2023. As a result of this change, an appropriate amount of reserves cannot be obtained withthe calculation method set forth in the main rules in Article 1, Paragraph 1 of the Japanese Ministry of
Finance Public Notice No.234, 1998 (“IBNR Notice”). The Company therefore records the amount thatwas calculated using the following method, pursuant to provisions in the proviso of Article 1, Paragraph
1 of IBNR Notice (the “Proviso”).
(Overview of the calculation method)
The Company calculates the amount of reserve for outstanding claims incurred but not reported eventsusing the same manner as that set forth in the main rules in Article 1, Paragraph 1 of IBNR Notice,excluding the amount related to deemed hospitalizations from a required amount of reserves for incurred
but not reported events and the amount of claim payments for all the fiscal years, as set forth in the main
rules in Article 1, Paragraph 1 of IBNR Notice.
In the fiscal year ended March 31, 2023, the Company calculates the reserve for outstanding claims
incurred but not reported events for deemed hospitalizations and the others separately; however, thespecial treatment of the payment of hospitalization benefits with regard to deemed hospitalization was
terminated for the interim period ended September 30, 2023. Therefore, the Company revised its
methodology to calculate the amount of reserve for outstanding claims incurred but not reported eventsfor deemed hospitalizations as zero.

15

Asahi Mutual Life Insurance Company

(15) Policy reserves
Policy reserves are calculated as stated in accordance with the methods stated in the statement ofcalculation 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, for insurance
policies under which the insurer’s liability has started as of the end of the interim period, in preparation
for the performance of future obligations under the insurance policies.
Of policy reserves, the premium reserves at the end of the interim period are calculated by the following
method:In regard to the policies subject to the standard policy reserves, the method as prescribed by theCommissioner of Financial Services Agency (Japanese Ministry of Finance Public Notice No. 48, 1996)
is applied.
In regard to the policies not subject to the standard policy reserves, the net level premium method isapplied.
Contingency reserves included in policy reserves are set aside in accordance with 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 the performance of
future obligations under insurance policies.

(16) Software
Capitalized software for internal use owned by the Company is amortized using the straight-line method
over the estimated useful lives.

16

Asahi Mutual Life Insurance Company

2.

Financial Instruments

The balance sheet amounts, fair values and the differences between those of major financial assets andliabilities as of September 30, 2023 were as follows. The following table does not include cash and deposits,
call loans and payables under securities borrowing transactions which are mostly settled in a short term andtheir fair values approximate their book values.

As of September 30, 2023
Monetary claims bought
Held-to-maturity
Held-to-maturitydebt
debt securities
securities
Available-for-sale
Available-for-sale securities
securities
Securities
Trading
Trading securities
securities
Held-to-maturity
Held-to-maturitydebt
debt securities
securities
Policy-reserve-matching
Policy-reserve-matching bonds
bonds
Available-for-sale
Available-for-sale securities
securities
Loans
PolicyPolicyloans
loans
Industrial
Industrial andand consumer
consumer loans
loans
Total assets
Bonds payable
Loans payable
Total liabilities
Derivative financial instruments
Hedge
Hedge accounting
accounting not
not applied
applied
Hedge
Hedge accounting
accounting applied
appliedMillions of Yen
Balance Sheet
Fair Value
Difference
Amount¥19,382 ¥20,849 ¥1,466
18,53620,003
1,466
846
846
4,251,498
4,162,330(89,168)
27,90827,908283,938
297,953
14,0142,206,701
2,103,518(103,182)
1,732,950
1,732,950
309,317
315,483
6,166
29,36829,368279,949
286,115
6,166
4,580,199
4,498,663(81,535)
102,609102,325(283)
44,00045,037
1,037
146,609147,363754(7,392)(7,392)(1,462)(1,462)(5,930)(5,930)-* Assets and liabilities generated by derivative financial instruments are offset and presented net.
Net liabilities in total are presented in parentheses.

Unlisted stocks and others, including investments in subsidiaries and affiliates, without market prices are notincluded in the table above. The amount of the unlisted stocks and others, including investments in subsidiaries
and affiliates, reported in the interim non-consolidated balance sheet was ¥80,802 million as of September 30,
2023.
Investment trusts which are accounted for in accordance with Paragraph 24-3 and 24-9 of “Implementation
Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No. 31, revised on June 17,2021) are included in the table above.
Investments in partnerships and others which are accounted for in accordance with Paragraph 24-16 of“Implementation Guidance on Accounting Standard for Fair Value Measurement” are not included in the table
above. The amount of the investments in partnerships and others, reported in the interim non-consolidatedbalance sheet was ¥60,106 million as of September 30, 2023.

17

Asahi Mutual Life Insurance Company

3.

Matters Concerning Fair Value of Major Financial Instruments and Breakdown by Input Level

Fair values of financial instruments are categorized into the following three levels in accordance with theobservability and significance of the inputs used to measure the fair value.
Level 1: Fair values measured by unadjusted quoted prices in active markets for identical assets or liabilities
Level 2: Fair values measured by inputs which are directly or indirectly observable other than Level 1 inputs
Level 3: Fair values measured by significant unobservable inputs
When several inputs that have significant impact on fair value measurement are used and those inputs are
categorized into different levels, the fair value is categorized into the lowest priority level for fair value
measurement among the levels to which each of the inputs belongs.
(1) Financial assets and liabilities recorded at fair values on the interim non-consolidated balance sheet

As of September 30, 2023
Monetary claims bought¥
Available-for-sale securities
Securities *1
Trading securities
OthersAvailable-for-sale securities
National government bonds andlocal government bonds
Corporate bonds
Domestic stocks
Foreign bonds
OthersTotal assets
Derivative financial instruments *2
Currency-related
Stock-related

Level 1
- ¥595,071595,071
14,844
489,680
1,145
89,399595,071-

Millions of Yen
Fair Value
Level 2
Level 3
- ¥
846 ¥
846
979,024
32,11027,90827,908951,116
32,110648
374,419
381,893
194,154
979,024(9,138)(9,138)-32,11032,957
1,745
1,745

Total
846
846
1,606,206
27,90827,908
1,578,298
15,493
374,419489,680
415,150
283,554
1,607,053(7,392)(9,138)1,745*1 Investment trusts which are accounted for in accordance with Paragraph 24-3 and 24-9 of “ Implementation
Guidance on Accounting Standard for Fair Value Measurement ” are not included in the table above. The
amount of the investment trusts which are accounted for in accordance with Paragraph 24-3 of theimplementation guidance, reported in the interim non-consolidated balance sheet was \149,423 million as of
September 30, 2023. The amount of the investment trusts which are accounted for in accordance with
Paragraph 24-9 of the implementation guidance, reported in the interim non-consolidated balance sheet was\5,228 million as of September 30, 2023.
*2 Assets and liabilities generated by derivative financial instruments are offset and presented net. Net liabilities
in total are presented in parentheses.

18

Asahi Mutual Life Insurance Company

i)Investment trusts which are accounted for in accordance with Paragraph 24-3 and 24-9 of“Implementation Guidance on Accounting Standard for Fair Value Measurement”
a)Reconciliation between the beginning and ending balance, and net unrealized gains (losses)
recognized as gains (losses) for the interim period, of the investment trusts which areaccounted for in accordance with Paragraph 24-3 of “Implementation Guidance on AccountingStandard for Fair Value Measurement”

Beginning balance
Gains (losses) and net unrealized gains (losses) on available-for-salesecurities, net of tax recorded for the interim period:
Gains (losses) recorded for the interim period *Net unrealized gains (losses) on available-for-sale securities,
net of tax recorded for the interim period
Net amount of purchase, sale and redemption
Amount of investment trusts whose NAV is deemed as market value
Amount of investment trusts whose NAV is not deemed as
market value
Ending balance
Net unrealized gains (losses) on investment trusts held at the balance
sheet date among the amount recorded to gains (losses) for theinterim period *Millions of Yen
Six months ended
September 30, 2023¥
134,005
9,837
1,144
8,692
5,580
149,423

1,144* Those amounts are included in investment income and investment expenses in the interim nonconsolidated statement of income.

b)

Breakdown of balance by restriction on cancellation as of the end of interim period
Millions of Yen
As of
September 30, 2023
Investment trusts which need more than 1 month to cancel
from the notification of cancellation
Other than above

19¥

42,938106,484

Asahi Mutual Life Insurance Company

c)Reconciliation between the beginning and ending balance, and net unrealized gains (losses)
recognized as gains (losses) for the interim period, of the investment trusts which areaccounted for in accordance with Paragraph 24-9 of “Implementation Guidance on AccountingStandard for Fair Value Measurement”

Beginning balance
Gains (losses) and net unrealized gains (losses) on available-for-salesecurities, net of tax recorded for the interim period:
Gains (losses) recorded for the interim period *Net unrealized gains (losses) on available-for-sale securities,
net of tax recorded for the interim period
Net amount of purchase, sale, and redemption
Amount of investment trusts whose NAV is deemed as market value
Amount of investment trusts whose NAV is not deemed as
market value
Ending balance
Net unrealized gains (losses) on investment trusts held at the balance
sheet date among the amount recorded to gains (losses) for theinterim period *Millions of Yen
Six months ended
September 30, 2023
¥
5,196
31
31
(0)
5,228

-

* Those amounts are included in investment income and investment expenses in the interim nonconsolidated statement of income.

(2) Financial assets and liabilities not recorded at fair values on the interim non-consolidated balance sheet

As of September 30, 2023
Monetary claims bought¥
Held-to-maturity debt securities
Securities
Held-to-maturity debt securities
National government bonds andlocal government bonds
Corporate bonds
Foreign bonds
Policy-reserve-matching bonds
National government bonds
and local government bonds
Corporate bonds
Loans
Policy loans
Industrial and consumer loans
Total assets
Bonds payable
Loans payable
Total liabilities

Level 1- ¥1,720,141
35,871Millions of Yen
Fair Value
Level 2
Level 3
19,590 ¥412 ¥19,590412
494,449
186,880
75,201
186,880

Total
20,00320,0032,401,471
297,953

35,871
1,684,270

75,201
419,248

186,880-

35,87175,201
186,880
2,103,518

1,684,270
1,720,141-

43,298375,950
514,040
102,325
102,325

315,483
29,368286,115
502,777
45,03745,037

1,727,568
375,950
315,483
29,368286,115
2,736,958
102,325
45,037
147,363

20

Asahi Mutual Life Insurance Company

(3) Description of the evaluation methods and inputs used to measure fair valuei)Securities including monetary claims bought which are treated as securities based on “AccountingStandard for Financial Instruments” (ASBJ Statement No. 10)
Fair values of securities for which unadjusted quoted market prices in active markets are available
are categorized as Level 1, which mainly include listed stocks, listed investment trusts andgovernment bonds. In the case the market is inactive even if the quoted market price is available,
those securities are categorized as Level 2, which mainly include corporate bonds and foreign bonds.
In the case the quoted market price is not available, fair values are measured by evaluation methods
such as discounting future cash flows. In evaluation, the Company maximizes the use of observable
inputs including swap rates, interest rate swap spreads, currency basis and others. When significant
unobservable inputs are used to measure fair values, those securities are categorized as Level 3.
The fair value of unlisted investment trusts, which have no restriction on cancellation that issignificant enough to require compensation for risk from market participants, are based on thequoted prices offered by counterparty financial institutions and categorized as level 2.

ii)

Loans
As credit exposure for policy loans without specific repayment periods is limited to the amount of
the cash surrender value, the Company considers book value as fair value with assumption that fairvalue approximates book value in light of factors such as projected repayment period and interest
terms. Policy loans are categorized as level 3.
As for industrial and consumer loans, the fair value of loans is stated at theoretical prices calculatedby discounting the future cash flows to the present value by type of loan, using market interest rates
with some adjustments based on internal credit rating. Industrial and consumer loans are categorized
as level 3. The fair value of loans to legally bankrupt borrowers, substantially bankrupt borrowers
and borrowers with high possibility of bankruptcy is stated at the amounts by deducting estimatedlosses from the book value before direct write-offs. Loans to legally bankrupt borrowers,
substantially bankrupt borrowers and borrowers with high possibility of bankruptcy are categorized
as level 3.

iii) Bonds payable
The fair value of bonds payable issued by the Company is stated at fair market value. Bonds payableissued by the Company are categorized as level 2. The fair value of bonds payable for which
designated hedge accounting (“Furiate-shori”) for currency swaps are applied is stated at fair market
value added by the fair value of currency swaps. The Company adopts prices obtained from external
information venders as the fair value of currency swaps.
iv)

Loans payableAs for loans payable, the fair value of loans is stated at theoretical prices calculated by discounting
the future cash flows to the present value, using market interest rates with some adjustments basedon the Company’s credit risk. Loans payable are categorized as level 3.

v)

Derivative financial instruments
As for derivative financial instruments, the fair values of foreign currency forward contracts are21

Asahi Mutual Life Insurance Company

stated at theoretical prices calculated by the Company based on the TTM at the balance sheet date.
The fair values of currency options, equity options, interest rate swaptions and equity forward
contracts are stated at the quoted prices offered by counterparty financial institutions.
In evaluation of derivative financial instruments, the Company maximizes the use of observable
inputs. In the case unobservable inputs are not used or impact of unobservable inputs are notmaterial, derivative financial instruments are categorized as level 2. In the case significant
unobservable inputs are used, derivative financial instruments are categorized as level 3.
(4) Quantitative information about financial assets and liabilities measured and stated in the interim nonconsolidated balance sheet at fair value and categorized as Level 3i)Quantitative information on significant unobservable inputs
Quoted prices obtained from third parties are used for fair values categorized as level 3 without
adjustment.

ii)

Reconciliation between the beginning and ending balance, and net unrealized gains (losses)
recognized as gains (losses) for the interim period
Millions of Yen

Six months ended
September 30, 2023

Beginning balance
Gains (losses) and net unrealized
gains (losses) on available-for-salesecurities, net of tax recorded for theinterim period:
Gains (losses) recorded for theinterim period *Net unrealized gains (losses) on
available-for-sale securities, net oftax recorded for the interim period
Net amount of purchase, sale, issue
and settlement
Transfer to fair values of Level 3
Transfer from fair values of Level 3
Ending balance
Net unrealized gains (losses) on financial
assets and liabilities held at the balance
sheet date among the amount recorded togains (losses) for the interim period *Monetary
Securities
claimsAvailable-for- Available-forsale securities sale securities
OthersForeign bonds
(i)
（ii）
¥
897 ¥
64,899 ¥Total(i) + (ii)

Derivative
financial
instruments
Stock-related

65,796 ¥

550

(41)

9,108

9,066

2,989

(10)

3,958

3,947

1,361

(31)

5,150

5,119

1,628

(9)
846

(41,897)
32,110(41,906)
32,957(1,794)
1,745

(10)

3,958

3,947

(565)

* Those amounts are included in investment income and investment expenses in the interim non-consolidated
statement of income.

22

Asahi Mutual Life Insurance Company

iii) Description of the fair value evaluation process
The Company establishes policies and procedures for measuring the fair value in actuarial andaccounting department and risk management department. In accordance with these policies andprocedures, risk management department measure the fair value. The validity of the evaluation
methods and inputs used to measure fair value and the appropriateness of categorization of fairvalue are verified in the independent division in risk management department.
In fair value measurement, valuation models in which the nature, characteristics and risks ofindividual assets are most appropriately reflected are used. In addition, when quoted prices obtained
from third parties are used, the validity of the prices is verified by appropriate methods such asconfirmation of evaluation method and used inputs and comparison with the fair values of similar
financial instruments.
4.

Investments and Rental Properties

The fair values of investment and rental properties are omitted because there have been no significant changes
compared with the corresponding fair values at the end of the previous fiscal year.
5.

Securities Lent under Lending Agreements

The amount of securities lent under lending agreements was ¥200,607 million as of September 30, 2023.
6.

Claims

The total amount of claims against bankrupt and quasi-bankrupt obligors, claims with collection risk,delinquent loans three or more months past due and restructured loans, which were included in claims, was¥485 million as of September 30, 2023.
i)

Claims against bankrupt and quasi-bankrupt obligors were ¥376 million as of September 30, 2023.

ii)

The Company does not have claims with collection risk as of September 30, 2023.

iii) Delinquent loans three or more months past due were ¥88 million as of September 30, 2023.
iv)

Restructured loans were ¥20 million as of September 30, 2023.

Claims against bankrupt and quasi-bankrupt obligors are claims to obligors who are subject to bankruptcy,
corporate reorganization or rehabilitation or other similar proceedings and other obligors in serious financial
difficulties.
Claims with collection risk are claims to obligors with deteriorated financial condition and results of operations
from which it is unlikely that the principal and interest on the claims will be recovered, excluding those claims
classified as claims against bankrupt and quasi-bankrupt obligors.
Delinquent loans three or more months past due are loans for which interest payments or repayments ofprincipal are delinquent for three months or more from the due dates under the terms of the related loan
agreements, excluding those claims classified as claims against bankrupt and quasi-bankrupt obligors andclaims with collection risk.
Restructured loans are loans for which certain concessions favorable to borrowers, such as interest reduction

23

Asahi Mutual Life Insurance Company

or exemptions, rescheduling of due dates of principal or interest payments, waivers of claim or other terms,
have been negotiated for the purpose of assisting and supporting the borrowers in the restructuring of theirbusinesses. This category excludes claims classified as claims against bankrupt and quasi-bankrupt obligors,
claims with collection risk and delinquent loans three or more months past due.
The direct write-offs related to claims decreased the amount of claims against bankrupt and quasi-bankrupt
obligors described above by ¥3 million as of September 30, 2023.
7.

Separate Accounts

Total assets in separate accounts provided for in Article 118 of the Insurance Business Act were ¥28,152
million as of September 30, 2023. The amounts of separate account liabilities were the same as separate
account assets.
8.

Reserve for Dividends to Policyholders

The change in reserve for dividends to policyholders for the interim period ended September 30, 2022 was asfollows:

Balance at the beginning of the interim period
Transfer to reserve from surplus in the previous fiscal year
Dividends to policyholders paid out during the interim period
Increase in interest
Balance at the end of the interim period

9.

Millions of Yen
Six months ended
September 30, 2023¥
27,103
2,497
1,637
1
¥
27,965

Stocks of Subsidiaries and Affiliates

The amount of stocks of subsidiaries and affiliates the Company held was ¥67,671 million as of September
30, 2023.
10. Pledged Assets
Assets pledged as collateral were securities in the amount of ¥9,401 million as of September 30, 2023.
11. Policy Reserves for the Reinsurance Contracts
Reserve for outstanding claims for the reinsurance contracts provided in accordance with Article 73, Paragraph
3 of the Enforcement Regulation of the Insurance Business Act which applies mutatis mutandis to Article 71,
Paragraph 1 of the Enforcement Regulation of the Insurance Business Act (hereinafter “reserve for outstanding
claims for ceded reinsurance”) was ¥7 million as of September 30, 2023. Policy reserves for the reinsurance
contracts provided in accordance with Article 71, Paragraph 1 of the Enforcement Regulation of the Insurance
Business Act (hereinafter “policy reserves for ceded reinsurance”) were ¥268 million as of September 30, 2023.

24

Asahi Mutual Life Insurance Company

12. Assets with Rights to Sell
The Company has the legal right to sell or collateralize securities borrowed under loan agreements. The market
value of these assets that were not sold or pledged as collateral was ¥12,062 million as of September 30, 2023.
No assets were pledged as collateral as of September 30, 2023.
13. Commitment LineAs of September 30, 2023, there were unused commitment line agreements under which the Company is thelender of ¥9,504 million.
14. Subordinated Bonds Payable
As of September 30, 2023, bonds payable are subordinated bonds payable, for which the repayments aresubordinated to other obligations.
15. Subordinated Loans Payable
As of September 30, 2023, other liabilities included subordinated loans payable of ¥44,000 million, for which
the repayments are subordinated to other obligations.

III.

Notes to Unaudited Non-consolidated Statement of Income

1.

Investment Income and Expenses

The major components of gains on sales of securities were as follows:

Domestic bonds
Domestic stocks and other securities
Foreign securities

Millions of Yen
Six months ended
September 30, 2023
¥
3,156
2,340
1,704

The major components of losses on sales of securities were as follows:

Domestic bonds
Domestic stocks and other securities
Foreign securities

25

Millions of Yen
Six months ended
September 30, 2023
¥
5,571
499
23,764

Asahi Mutual Life Insurance Company

The major components of losses on valuation of securities were as follows:

Domestic stocks and other securities
Foreign securities

2.

Millions of Yen
Six months ended
September 30, 2023¥
00

Policy Reserves for the Reinsurance Contracts

Reversal of reserve for outstanding claims for ceded reinsurance, which was deducted in calculating reversalof reserve for outstanding claims for the interim period ended September 30, 2023 was ¥9 million.
Reversal of policy reserves for ceded reinsurance, which was deducted in calculating reversal of policy
reserves for the interim period ended September 30, 2023 was ¥89 million.
3.

Interest and Dividend Income

The breakdown of interest, dividends and other income was as follows:
Millions of Yen
Six months ended
September 30, 2023¥
048,493
2,912
8,039
909
60,355Interest on deposits
Interest and dividends on securities
Interest on loans
Rent revenue from real estate
Other interest and dividends
Total

4.

Income Tax Expense

The simplified method is applied for tax effect accounting to calculate income tax expense for the interim
period ended September 30. Therefore, deferred taxes are included in income taxes.

26

Asahi Mutual Life Insurance Company

6. Breakdown of Ordinary Profit (Fundamental Profit)

Fundamental profit
Capital gains
Gains on money held in trust
Gains on trading securities
Gains on sales of securities
Gains on derivative financial instruments
Foreign exchange gains
Other capital gains
Capital losses
Losses on money held in trust
Losses on trading securities
Losses on sales of securities
Losses on valuation of securities
Losses on derivative financial instruments
Foreign exchange losses
Other capital losses
Net capital gains (losses)
Fundamental profit plus net capital gains (losses)(Millions of Yen)

Ａ

Ｂ
Ａ＋Ｂ

Other one-time gains
Reinsurance revenue
Reversal of contingency reserve
Reversal of specific allowance for possible loan losses
OthersOther one-time losses
Reinsurance premiums
Provision for contingency reserve
Provision for specific allowance for possible loan losses
Provision for allowance for specified overseas loans
Write-offs of loans
OthersNet other one-time gains (losses)
Ordinary profit

Ｃ
Ａ＋Ｂ＋Ｃ

Six months ended
September 30, 2022

Six months ended
September 30, 2023

7,895
19,845
10,7644,437
4,644
25,43916,913
2
8,156
368(5,594)2,301
15,87915,879100
100
015,77918,08018,815
19,552
7,201
3,977
8,374
41,870206
29,835
1
11,551
275(22,317)(3,502)
19,564
19,49866
0
0
19,564
16,062(Millions of Yen)

（Reference） Breakdown of "other" items

Fundamental profit
Hedging costs related to foreign exchange
Gains (losses) on cancellation of investment trusts
Gains (losses) on redemption of securities caused by foreign exchange
fluctuation
Other capital gains
Hedging costs related to foreign exchange
Gains on cancellation of investment trusts
Gains on redemption of securities caused by foreign exchange fluctuation
Other capital losses
Hedging costs related to foreign exchange
Losses on cancellation of investment trusts
Losses on redemption of securities caused by foreign exchange fluctuation

27

Six months ended
September 30, 2022

Six months ended
September 30, 2023

(4,276)(2,849)(1,794)(8,099)(6,909)(1,465)

368
4,644
2,849
1,794
368
368

275
8,374
6,909
1,465
275
275

Asahi Mutual Life Insurance Company

７．Disclosed Claims Based on Insurance Business Act(Millions of Yen, ％)As of March 31, 2023

As of September 30, 2023

Claims against bankrupt andquasi-bankrupt obligors

386

376

Claims with collection risk

30-

Delinquent loans three or moremonths past due

85

88

Restructured loans

20

20

Subtotal

521

485（Percentage of total）(0.10)(0.09)

Claims against normal obligors

505,064

523,412

Total

505,586

523,897

Notes:
1. Claims against bankrupt and quasi-bankrupt obligors are claims to obligors who are subject to bankruptcy,
corporate reorganization or rehabilitation or other similar proceedings and other obligors in serious financial
difficulties.
2. Claims with collection risk are claims to obligors with deteriorated financial condition and results of operations
from which it is unlikely that the principal and interest on the claims will be recovered, other than the claims
described in note 1. above.
3. Delinquent loans three or more months past due are loans for which interest payments or repayments ofprincipal are delinquent for three months or more from the due dates under the terms of the related loan
agreements, other than the claims described in note 1. or 2. above.
4. Restructured loans are loans for which certain concessions favorable to borrowers, such as interest reduction or
exemptions, rescheduling of due dates of principal or interest payments, waivers of claim or other terms, havebeen negotiated for the purpose of assisting and supporting the borrowers in the restructuring of theirbusinesses, other than the claims described in note 1., 2. or 3. above.
5. Claims against normal obligors are all other claims.

28

Asahi Mutual Life Insurance Company

8. Solvency Margin Ratio(Millions of Yen)
As of March 31, 2023 As of September 30, 2023

Total solvency margin（Ａ）

947,464

964,655

Foundation funds and surplus

342,668

351,888

Reserve for price fluctuation

38,21039,290Contingency reserve

63,10943,611

345

425(Net unrealized gains on available-for-sale securities (before tax effect) anddeferred hedge gains (before tax effect)) × 90% (in case of losses： × 100%)

149,490

232,283

Net unrealized gains on land × 85%(in case of losses： × 100%)

35,037

34,639

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

148,266

148,264

Qualifying subordinated debt

199,555

146,609--

Deduction(50,000)(55,000)

Others

20,78022,644203,084

222,121

General allowance for possible loan losses

Excess amount of policy reserves based on full-time Zillmer method andqualifying 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

11,55811,308

Third sector insurance risk

R8

10,84810,800

Risk of assumed yield

R2

64,04962,918Minimum guarantee risk

R7

1,004

998

Investment riskR3

132,366

152,310

Operational risk

R4

4,396

4,766

933.0%

868.5%

Solvency margin ratio(Ａ) / {(1/2)×(Ｂ)} × 100

Notes:
1. The figures above are calculated based on Articles 86 and 87 of the Enforcement Regulation of the Insurance Business Act
and Japanese Ministry of Finance Public Notice No. 50, 1996.
2. "Excess amount of policy reserves based on full-time Zillmer method", "Qualifying subordinated debt" and "Excess amountof policy reserves based on full-time Zillmer method and qualifying subordinated debt excluded from the calculation ofsolvency margin" are calculated based on the Public Notice No.25 of the Financial Services Agency of 2011.
3. "Minimum guarantee risk" is calculated by standard method.

29

Asahi Mutual Life Insurance Company

9. Status of Separate Account(1) Separate Account Assets by Products(Millions of Yen)

As of March 31, 2023

As of September 30, 2023

AmountAmountIndividual variable insurance

26,43828,152

Individual variable annuities--

Group annuity products--

26,43828,152

Total（2）Sum Insured of Policies in Force
As of March 31, 2023
Number of policies(Thousands)

As of September 30, 2023

Amount(Millions of Yen)

Number of policies(Thousands)

Amount(Millions of Yen)

Individual variable insurance(fixed term)

-

-

-

-

Individual variable insurance(whole life)

12

83,683

11

82,522

Total

1283,683

11

82,522As of March 31, 2023
Number of policies(Thousands)

As of September 30, 2023

Amount(Millions of Yen)

Number of policies(Thousands)

Amount(Millions of Yen)

Individual variable annuities

-

-

-

-

Total

-

-

-

-

30

Asahi Mutual Life Insurance Company

10. Status of the Company, Subsidiaries and Affiliates(1) Selected Financial Data
(Millions of Yen)
Six months ended
September 30, 2022

Six months ended
September 30, 2023

Ordinary income

343,479

354,604

Ordinary profit

13,986

10,123

Net surplus attributable to the Parent Company

10,968

6,839

Comprehensive income(56,608)

74,363(Millions of Yen)

As of March 31, 2023
Total assets
Solvency margin ratio

31

As of September 30, 2023

5,283,507

5,261,174

979.3%

911.6%

Asahi Mutual Life Insurance Company

（2）Unaudited Consolidated Balance Sheets(Millions of Yen)
As of March 31, 2023

As of September 30, 2023

Assets:Cash and deposits

50,60147,698Call loans

166,000

68,000

Monetary claims bought

20,292

19,382

Securities

4,249,612

4,333,218

Loans

303,961

309,317

Tangible fixed assets

360,023

356,537

Intangible fixed assets

38,05340,301

6

3

Reinsurance receivables

26,87135,403

Other assets

58,96550,698421

385

Agency accounts receivable

Net defined benefit assets
Deferred tax assets
Customers’ liabilities under acceptances and guarantees
Allowance for possible loan losses
Total assets

8,745

70

600

820

(648)

(663)

5,283,507

5,261,174(Millions of Yen)

As of March 31, 2023

As of September 30, 2023

Liabilities:
Policy reserves and other reserves:

4,335,719

Reserve for outstanding claims

36,411

36,982

4,272,203

4,214,793

27,10327,965826

486

Bonds payable

150,555

102,609

Other liabilities

294,447

289,984

Net defined benefit liabilities

31,54831,116

Reserve for price fluctuation

38,21039,2900

16,184

15,062

14,914

Policy reserves
Reserve for dividends to policyholders
Reinsurance payables

Deferred tax liabilities
Deferred tax liabilities for land revaluation
Acceptances and guarantees

4,279,741

600

820

4,866,969

4,775,147

Foundation funds

51,00051,000Reserve for redemption of foundation funds

206,000

206,000

Total liabilities
Net assets:

Reserve for revaluation

281

281

Consolidated surplus

79,001

81,402

Total foundation funds and others

336,283

338,684

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

130,668

196,518-

1,173

Land revaluation differences(48,406)(48,788)

Accumulated remeasurements of defined benefit plans(2,104)(1,632)

Total accumulated other comprehensive income

80,157

147,271

Deferred gains (losses) on derivatives under hedge accounting

Non-controlling interests
Total net assets
Total liabilities and net assets

32

96

71

416,537

486,027

5,283,507

5,261,174

Asahi Mutual Life Insurance Company

（3）Unaudited Consolidated Statements of Income and Statements of Comprehensive Income(Unaudited Consolidated Statements of Income)Six months ended
September 30, 2022
Ordinary income:(Millions of Yen)
Six months ended
September 30, 2023

343,479

354,604

Premium and other income

205,245

213,016

Investment income:80,30777,604

Interest, dividends and other income

61,52160,095

Gains on sales of securities

10,764

7,202

-

2,759

Investment gains on separate accounts
Other ordinary income
Ordinary expenses:
Claims and other payments:

57,92563,983

329,492

344,481

201,627

198,649

Claims53,25852,213

Annuities

52,991

51,588Benefits

49,68038,844

Surrender benefits

40,11743,053

Other payments

1,250

1,353

Provision for policy reserves and other reserves:

6,391

572

Provision for reserve for outstanding claims

6,389

571

1

1

Investment expenses:

Provision for interest on policyholders’ dividend reserves

36,82652,341

Interest expenses

1,834

2,518

Losses on trading securities-

206

Losses on sales of securities

16,91329,8362

1

Losses on derivative financial instruments

8,156

11,551

Investment losses on separate accounts

949-

Operating expenses

66,25074,428Other ordinary expenses

18,39618,48913,986

10,123242

206

Extraordinary losses

1,908

1,590

Surplus before income taxes

12,3208,739

Income taxes including deferred taxes

1,325

1,871

Total income taxes

1,325

1,871

Net surplus

10,994

6,867

26

28

10,968

6,839

Losses on valuation of securities

Ordinary profit
Extraordinary gains

Net surplus attributable to non-controlling interests
Net surplus attributable to the Parent Company

33

Asahi Mutual Life Insurance Company

(Millions of Yen)

(Unaudited Consolidated Statements of Comprehensive Income)Six months ended
September 30, 2022

Six months ended
September 30, 2023

Net surplus

10,994

6,867

Other comprehensive income:(67,602)67,495(67,853)

65,850

-

1,173

250

471

(56,608)

74,363(56,634)

74,33526

28

Net unrealized gains (losses) on available-for-sale securities, net of tax
Deferred gains (losses) on derivatives under hedge accounting
Remeasurements of defined benefit plans
Comprehensive income:Comprehensive income attributable to the Parent Company
Comprehensive income attributable to non-controlling interests

34

Asahi Mutual Life Insurance Company

（4）Unaudited Consolidated Statements of Cash Flows(Millions of Yen)

I. Cash flows from operating activities
Surplus before income taxes
Depreciation of rental real estate and other assets
Depreciation
Impairment losses
Increase (decrease) in reserve for outstanding claims
Increase (decrease) in policy reserves
Provision for interest on policyholders’ dividend reserves
Increase (decrease) in allowance for possible loan losses
Increase (decrease) in net defined benefit liabilities
Increase (decrease) in reserve for price fluctuation
Interest, dividends and other income(Gains) losses on securities(Gains) losses on derivative financial instruments
Interest expenses
Foreign exchange (gains) losses, net(Gains) losses on tangible fixed assets
Others, net
SubtotalInterest, dividends and other income received
Interest paid
Dividends to policyholders paid
Income taxes (paid) refunded
Net cash provided by (used in) operating activities
II. Cash flows from investing activities
Proceeds from sales and redemptions of monetary claims bought
Purchases of securities
Proceeds from sales and redemptions of securities
Disbursements for loans
Proceeds from collections of loans
Proceeds from derivative financial instruments
Increase (decrease) in payables under securities borrowing transactions
Others, net①Total of investing activities[I+①]
Purchases of tangible fixed assets
Proceeds from sales of tangible fixed assets
Others, net
Net cash provided by (used in) investing activities
III. Cash flows from financing activities
Proceeds from debt borrowing
Redemption of debt borrowing
Redemption of bonds
Redemption of foundation funds
Payment of interest on foundation funds
Dividends paid to non-controlling interests
Others, net
Net cash provided by (used in) financing activities
IV.Net increase (decrease) in cash and cash equivalents
V.Cash and cash equivalents at the beginning of the inerim period
VI. Cash and cash equivalents at the end of the interim period

Six months ended
September 30, 2022

Six months ended
September 30, 2023

12,320
2,779
6,889
464
6,389
(50,223)
1
145
(302)
1,260
(61,521)
7,469
8,156
1,834
(4,439)(226)(1,114)(70,118)
63,996(1,987)(1,590)(5,632)(15,331)

8,739
2,735
6,241
280
571
(57,410)
1
13
34
1,080
(60,095)
20,357
11,551
2,518(3,983)(107)(16,577)(84,048)
60,543(2,839)(1,637)
5,207(22,773)

1,232(396,440)
490,938(20,239)
43,270(135,022)
40,02423,7628,430(3,048)507(6,541)
14,680867(380,134)
419,743(29,661)
28,320(62,178)(2,690)(206)(25,938)(48,712)(2,673)
1,169(6,760)(34,204)

5,000(2,000)(40,000)(4,040)(51)(489)(41,580)(42,231)
158,030
115,798

11,600(5,000)(47,946)(2,323)(52)(202)(43,924)(100,902)
216,601
115,698

Note: Cash and cash equivalents in consolidated cash flow statements includes cash in hand, cash at bank and short-term investments withredemption period of three months and less than three months, which can be withdrawn anytime and can be converted to cash with
ease.

35

Asahi Mutual Life Insurance Company

（5）Unaudited Consolidated Statements of Changes in Net Assets
Six months ended September 30, 2022

(Millions of Yen)
Foundation funds and others

Beginning balance

Foundation
funds

Reserve forredemption offoundation
funds

Reserve forrevaluation

Consolidated
surplusTotal
foundation
funds andothers91,000166,000

281

111,982369,264(2,121)(2,121)

Changes in the interim period:
Additions to reserve fordividends to policyholders
Additions to reserve forredemption of foundation funds
Payment of interest on
foundation funds
Net surplus attributable to the
Parent Company
Redemption of foundation funds

40,000(40,000)(4,040)(4,040)10,968

10,968(40,000)(40,000)

Reversal of land revaluationdifferences
Net changes, excluding
foundation funds and others

308

308

Net changes in the interim period(40,000)

40,000-(34,884)(34,884)

Ending balance

51,000206,000

281

77,097334,379

Accumulated
remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

Total
net assets(2,077)125,12194

494,480

Accumulated other comprehensive income
Net unrealized
gains (losses) on
available-for-salesecurities,
net of tax

Beginning balance

173,938Land
revaluationdifferences(46,739)

Changes in the interim period:
Additions to reserve fordividends to policyholders
Additions to reserve forredemption of foundation funds
Payment of interest on
foundation funds
Net surplus attributable to the
Parent Company(2,121)(4,040)10,968

Redemption of foundation funds
Reversal of land revaluationdifferences
Net changes, excluding
foundation funds and others(40,000)
308(67,853)

(308)

250

(67,911)(25)(67,936)

Net changes in the interim period(67,853)

(308)

250

(67,911)(25)(102,821)

Ending balance

106,085(47,047)(1,826)57,21069

391,659

36

Asahi Mutual Life Insurance Company

Six months ended September 30, 2023

(Millions of Yen)
Foundation funds and others

Beginning balance

Foundation
funds

Reserve forredemption offoundation
funds

Reserve forrevaluation

Consolidated
surplusTotal
foundation
funds andothers

51,000206,000

281

79,001

336,283(2,497)(2,497)(2,323)(2,323)

6,839

6,839

382

382

Changes in the interim period:
Additions to reserve fordividends to policyholders
Payment of interest on
foundation funds
Net surplus attributable to
the Parent Company
Reversal of land revaluationdifferences
Net changes, excluding
foundation funds and others
Net changes in the interim
periodEnding balance

-

-

-

2,401

2,401

51,000206,000

281

81,402

338,684

Accumulated other comprehensive income
Net unrealized
Deferred gains
Total
gains (losses)
Accumulated(losses) on
Landaccumulated
on availableremeasuremenderivatives
revaluationotherfor-salets of defined
under hedge
differencescomprehensive
securities,
benefit plansaccounting
incomenet of tax
Beginning balance

130,668-(48,406)(2,104)80,157

Noncontrollinginterests

Total
net assets

96

46,537

Changes in the interim period:
Additions to reserve fordividends to policyholders
Payment of interest on
foundation funds
Net surplus attributable to
the Parent Company
Reversal of land revaluationdifferences
Net changes, excluding
foundation funds and others
Net changes in the interim
periodEnding balance(2,497)(2,323)6,839
382
65,850

1,173

(382)

471

67,113(24)

67,08865,850

1,173

(382)

471

67,113(24)

69,489196,518

1,173(48,788)(1,632)

147,27171

486,027

37

Asahi Mutual Life Insurance Company

I. Presentation of Unaudited Consolidated Financial Statements
1.

Basis of Presentation

The accompanying interim consolidated financial statements have been prepared from the accounts maintainedby Asahi Mutual Life Insurance Company (the “Company”) and its consolidated subsidiaries in accordancewith the provisions set forth in the Insurance Business Act of Japan and its related rules and regulations
applicable to the mutual life insurance industry and in conformity with semi-annual 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 interim consolidated financial statements include information which is not required
under semi-annual 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 amounts in yen shown herein do
not necessarily agree with the sum of the individual amounts.
The Insurance Business Act shall prescribe the disclosure of a single fiscal year. The Company provides thedisclosure of comparative financial information corresponding to each comparative fiscal year in the presented
financial statements for use by readers outside Japan.
In preparing the accompanying interim consolidated financial statements, certain reclassifications have been
made to the consolidated financial statements issued domestically in order to present them in a format which
is more familiar to readers outside Japan.
2.

Principles of Consolidation(1) Scope of consolidation
The consolidated subsidiaries as of September 30, 2023 are listed below:
Info Techno Asahi Co., Ltd.
Asahi Life Asset Management Co., Ltd.
Asahi Natixis Investment Managers Co., Ltd.
Nanairo Life Insurance Co., Ltd.
The major unconsolidated subsidiary is Asahi Real Estate Management Co., Ltd.
Each non-consolidated subsidiary is small in scale in terms of total assets, amount of sales, net income
and surplus for the interim period. As such non-consolidated subsidiaries are not considered to materiallyaffect any reasonable determination as to the financial position and results of operation of the Company’sgroup, these companies are excluded from the consolidation.

38

Asahi Mutual Life Insurance Company

(2) Application of equity method
Unconsolidated subsidiaries and affiliates (such as Asahi Real Estate Management Co., Ltd, etc.) are
immaterial in terms of their impact on consolidated net income and surplus, and also immaterial as awhole, therefore, the equity method is not applied.
(3) Interim period-end of consolidated subsidiaries
The interim period-end of the consolidated subsidiaries is September 30.

II.

Notes to Unaudited Consolidated Balance Sheet

1.

Significant Accounting Policies(1) Valuation methods of securities
The valuation of securities, including deposits and monetary claims bought which are equivalent tosecurities is as follows:i)

Trading securities are stated at fair market value. Costs of sales are determined by the moving
average method.

ii)

Held-to-maturity debt securities are stated at amortized cost (straight-line method) determined by
the moving average method.

iii) Policy-reserve-matching bonds, which are 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(“JICPA”)), are stated at amortized cost (straight-line method) determined by the moving averagemethod.
iv)

Investments in unconsolidated subsidiaries and affiliates not accounted for under the equity method
are stated at cost.

v)

Available-for-sale securities except for the following are stated at fair market value based on themarket prices at the balance sheet date, of which costs of sales are determined by the moving
average method. Available-for-sale securities, of which public and corporate bonds including
foreign bonds with the difference between acquisition cost and face value considered as an
adjustment of interest, are stated at amortized cost (straight-line method) determined by the moving
average method. Stocks and others without a market price are stated at cost determined by themoving average method. Net unrealized gains or losses on these available-for-sale securities, net oftax, are recorded as a separate component of net assets.

(2) Policy-reserve-matching bonds
The Company classifies bonds held with the aim of matching the duration to outstanding insurance
liabilities within the sub-groups (categorized by insurance type, investment policy and other factors) ofindividual life insurance and individual annuities as policy-reserve-matching bonds in accordance with

39

Asahi Mutual Life Insurance Company

“Temporary Treatment of Accounting and Auditing Concerning Policy-reserve-matching Bonds inInsurance Industry” (Industry Audit Committee Report No. 21 issued by the JICPA).
(3) Revaluation of land
The Company revalued the land for business purposes based on the Act on Revaluation of Land (Act No.
34 promulgated on March 31, 1998). The difference between fair value and book value resulting fromthe revaluation, net of related taxes, is recorded as land revaluation differences as a separate componentof net assets and the related tax is recorded as deferred tax liabilities for revaluation.
■

Date of revaluation: March 31, 2001■

Method of revaluation as prescribed for in Article 3, Paragraph 3 of the said Act:The calculation is based on the publicly announced appraisal value with certain adjustments set
forth in Article 2, Item 1 of the Enforcement Ordinance of the Act on Revaluation of Land
(Government Ordinance No. 119 promulgated on March 31, 1998) or the appraisal value
determined by the real-estate appraiser set forth in Article 2, Item 5 of the said Ordinance withcertain reasonable adjustments.

(4) Depreciation of tangible fixed assets
Depreciation of the Company’s tangible fixed assets is calculated by the following methods.
(For the interim reporting purposes, the amount for the semi-annual period is determined.)■

Tangible fixed assets (excluding lease assets): Declining-balance method
However, buildings are depreciated using the straight-line method.

■

Lease assets related to finance lease transactions that do not transfer ownership: Straight-line
method over the lease term with no residual value(5) Foreign currency translation
Foreign currency-denominated assets and liabilities (excluding the shares of unconsolidated subsidiaries
and affiliates) are translated into Japanese yen at the effective exchange rate prevailing at the balance
sheet date.
(6) Allowance for possible loan losses
Allowance for possible loan losses is provided in accordance with the Company’s standards of selfassessment and write-offs and reserves on credit quality:i)

For credit to borrowers who are legally bankrupt such as being in bankruptcy proceedings or civil
rehabilitation (hereinafter “legally bankrupt borrowers”) and who are substantially bankrupt(hereinafter “substantially bankrupt borrowers”), the Company provides the remaining amount ofcredits after the direct write-off described below and the deductions of the amount expected to becollected through the disposal of collateral or the execution of guarantees.

40

Asahi Mutual Life Insurance Company

ii)

For credit to borrowers who are not currently bankrupt but have a high risk of bankruptcy(hereinafter “borrowers with high possibility of bankruptcy”), the Company provides the amounts
deemed as necessary considering the borrowers’ ability to pay, within the amounts after deductionsof the amount expected to be collected through the disposal of collateral or the execution ofguarantees.

iii) For credit to borrowers other than the above, the Company provides the amounts calculated bymultiplying the book value by the actual ratio of bad debt losses on defaults during a certain past
period.
All credit is assessed by the relevant departments in accordance with the Company’s standards of selfassessment on credit quality. The results of the assessment are reviewed by the audit department, whichis independent of business-related divisions. Subsequently, allowance for possible loan losses is provided
based on the results of these assessments.
For consolidated subsidiaries, the Company records the allowance amounts deemed necessary inaccordance mainly with the Company’s standards of self-assessment and write-offs and reserves on credit
quality.
For credit to 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 from the book value as the estimated uncollectible amounts. The amount written-off
was ¥3 million as of September 30, 2023.
(7) Accounting for employees’ retirement benefits and method of amortizing retirement benefit expenses
Net defined benefit liabilities and assets are presented for the employees’ retirement benefits after
deducting pension plan assets from retirement benefit obligations, based on estimated amounts as of thebalance sheet date.
The Company uses the following methods of accounting in relation to retirement benefits.
■

The retirement benefit obligation is attributed to each period by the benefit formula method.

■

Actuarial differences are amortized under the straight-line method over a period of six years starting
the following year.

■

Prior service cost is charged to income when incurred.

(8) Accounting for hedging activities
Hedging activities are accounted for in accordance with the “Accounting Standards for Financial
Instruments” (Accounting Standards Board of Japan (“ASBJ”) Statement No. 10).
The Company mainly applies the following hedging activities:
The Company applies deferred hedge accounting and the exceptional accounting treatment (“Tokureishori”) for interest rate swaps used to hedge the cash flow volatility of certain loans.

41

Asahi Mutual Life Insurance Company

The Company also applies fair value hedge accounting for hedging activities related to foreign exchange
rate fluctuation exposures on certain bonds, investment trusts and others denominated in foreign
currencies.
The Company also applies deferred hedge accounting using equity forward contracts for hedging
activities related to price fluctuation exposures on certain domestic stocks.
The Company also applies designated hedge accounting (“Furiate-shori”) for currency swaps used tohedge foreign exchange rate fluctuation exposures on the foreign currency-denominated bonds issued by
the Company.
The Company also applies designated hedge accounting (“Furiate-shori”) for the foreign currencydenominated transactions other than the above.
The effectiveness of a hedge is mostly assessed by a ratio analysis, comparing the fluctuations in the fairvalue or cash flows of hedged items and hedging instruments.
(9) Valuation methods of derivative financial instruments
Derivative financial instruments are stated at fair market value.
(10) Reserve for price fluctuation
Reserve for price fluctuation is calculated in accordance with Article 115 of the Insurance Business Act.
(11) Accounting for consumption taxes
The Company and its subsidiaries account for consumption tax and local consumption tax by the taxexclusion method. The consumption taxes on certain assets, which are not deductible from consumption
taxes withheld and that are stipulated to be deferred under the Corporation Tax Act of Japan, are deferred
as other assets and amortized equally over five years.
Consumption taxes other than deferred consumption taxes are recognized as an expense for the current
interim period.
(12) Group tax sharing system
The Company and part of its subsidiaries have applied the group tax sharing system.
(13) Premium and other income (excluding reinsurance revenue)
Premium and other income (excluding reinsurance revenue) are recorded in principle for insurance
policies for which insurance premium has been received and the insurer’s liability under the insurance
policies or insurance coverage period has commenced by the relevant amounts received.
Of insurance premiums, the portion corresponding to the period that has yet to pass as of the end of theinterim period is set aside as policy reserves in accordance with Article 116 of the Insurance BusinessAct and Article 69, Paragraph 1, Item 2 of the Enforcement Regulation of the Insurance Business Act.

42

Asahi Mutual Life Insurance Company

(14) Reinsurance revenue
Reinsurance revenue is recorded as reinsurance claims and others received based on the proportion cededin reinsurance and others stipulated in the reinsurance contracts in the reporting period when the income
and expenditure for ceded insurance policies (hereinafter “reinsurance ceded”) are recorded.
For modified coinsurance, ceding commissions which are received as part of amounts equivalent to newpolicy acquisition costs for reinsurance ceded are recorded as reinsurance revenue, while the sameamounts are recorded as reinsurance receivables as unamortized ceding commissions and amortized overthe period of the reinsurance contracts.
(15) Claims and other payments (excluding reinsurance premiums)
Claims and other payments (excluding reinsurance premiums) are recorded for insurance policies forwhich amounts calculated under policy conditions have been paid in the occurrence of insured events
under 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 is set aside for claims, etc.
which is not recorded as payment of claims, etc. but for which the Company has payment obligation or
the occurrence of insured events has not been reported but the Company finds that insured events havealready occurred, as of the end of the interim period.
With respect to reserve for outstanding claims incurred but not reported events (referring to claims forwhich the occurrence of the insured events has not been reported but the Company finds that insured
events have already occurred; hereinafter the same), the special treatment of the payment of
hospitalization benefits with regard to people with diagnoses of COVID-19 given and under the care ofa doctor and the like at an accommodation facility or at home (“deemed hospitalizations”) was terminatedon May 8, 2023. As a result of this change, an appropriate amount of reserves cannot be obtained withthe calculation method set forth in the main rules in Article 1, Paragraph 1 of the Japanese Ministry of
Finance Public Notice No.234, 1998 (“IBNR Notice”). The Company therefore records the amount thatwas calculated using the following method, pursuant to provisions in the proviso of Article 1, Paragraph
1 of IBNR Notice (the “Proviso”).
(Overview of the calculation method)
The Company calculates the amount of reserve for outstanding claims incurred but not reported eventsusing the same manner as that set forth in the main rules in Article 1, Paragraph 1 of IBNR Notice,excluding the amount related to deemed hospitalizations from a required amount of reserves for incurred
but not reported events and the amount of claim payments for all the fiscal years, as set forth in the main
rules in Article 1, Paragraph 1 of IBNR Notice.
In the fiscal year ended March 31, 2023, the Company calculates the reserve for outstanding claims
incurred but not reported events for deemed hospitalizations and the others separately; however, thespecial treatment of the payment of hospitalization benefits with regard to deemed hospitalization was
terminated for the interim period ended September 30, 2023. Therefore, the Company revised its
methodology to calculate the amount of reserve for outstanding claims incurred but not reported eventsfor deemed hospitalizations as zero.

43

Asahi Mutual Life Insurance Company

(16) Reinsurance premiums
Reinsurance premiums are recorded as reinsurance premiums paid based on the proportion ceded inreinsurance and others stipulated in the reinsurance contracts in the reporting period when the income
and expenditure for reinsurance ceded are recorded.
Part of policy reserves and reserve for outstanding claims corresponding to insurance policies which havebeen reinsured is not set aside in accordance with Article 71, Paragraph 1 and Article 73, paragraph 3 ofthe Enforcement Regulation of the Insurance Business Act.
(17) Policy reserves
Policy reserves are calculated as stated in accordance with the methods stated in the statement ofcalculation 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, for insurance
policies under which the insurer’s liability has started as of the end of the interim period, in preparation
for the performance of future obligations under the insurance policies.
Of policy reserves, the premium reserves at the end of the interim period are calculated by the following
method:In regard to the policies subject to the standard policy reserves, the method as prescribed by theCommissioner of Financial Services Agency (Japanese Ministry of Finance Public Notice No. 48, 1996)
is applied.
In regard to the policies not subject to the standard policy reserves, the net level premium method isapplied.
Contingency reserves included in policy reserves are set aside in accordance with 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 the performance of
future obligations under insurance policies.
(18) Software
Capitalized software for internal use owned by the Company and its subsidiaries (included in intangible
fixed assets in the consolidated balance sheet) is amortized using the straight-line method over theestimated useful lives.

44

Asahi Mutual Life Insurance Company

2.

Financial Instruments

The balance sheet amounts, fair values and the differences between those of major financial assets andliabilities as of September 30, 2023 were as follows. The following table does not include cash and deposits,
call loans and payables under securities borrowing transactions which are mostly settled in a short term andtheir fair values approximate their book values.

As of September 30, 2023
Monetary claims bought
Held-to-maturity
Held-to-maturitydebt
debt securities
securities
Available-for-sale
Available-for-sale securities
securities
Securities
Trading
Trading securities
securities
Held-to-maturity
Held-to-maturitydebt
debt securities
securities
Policy-reserve-matching
Policy-reserve-matching bonds
bonds
Available-for-sale
Available-for-sale securities
securities
Loans
PolicyPolicyloans
loans
Industrial
Industrial andand consumer
consumer loans
loans
Total assets
Bonds payable
Loans payable
Total liabilities
Derivative financial instruments
Hedge
Hedge accounting
accounting not
not applied
applied
Hedge
Hedge accounting
accounting applied
appliedMillions of Yen
Balance Sheet
Fair Value
Difference
Amount¥19,382 ¥20,849 ¥1,466
18,53620,003
1,466
846
846
4,251,499
4,162,330(89,168)
27,90827,908283,938
297,953
14,0142,206,701
2,103,518(103,182)
1,732,950
1,732,950
309,317
315,483
6,166
29,36829,368279,949
286,115
6,166
4,580,199
4,498,664(81,535)
102,609102,325(283)
55,60056,638
1,038
158,209
158,963754(7,392)(7,392)(1,462)(1,462)(5,930)(5,930)-* Assets and liabilities generated by derivative financial instruments are offset and presented net.
Net liabilities in total are presented in parentheses.

Unlisted stocks and others, including investments in subsidiaries and affiliates, without market prices are notincluded in the table above. The amount of the unlisted stocks and others, including investments in subsidiaries
and affiliates, reported in the interim consolidated balance sheet was ¥21,612 million as of September 30, 2023.
Investment trusts which are accounted for in accordance with Paragraph 24-3 and 24-9 of “Implementation
Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No. 31, revised on June 17,2021) are included in the table above.
Investments in partnerships and others which are accounted for in accordance with Paragraph 24-16 of“Implementation Guidance on Accounting Standard for Fair Value Measurement” are not included in the table
above. The amount of the investments in partnerships and others, reported in the interim consolidated balance
sheet was ¥60,106 million as of September 30, 2023.

45

Asahi Mutual Life Insurance Company

3.

Matters Concerning Fair Value of Major Financial Instruments and Breakdown by Input Level

Fair values of financial instruments are categorized into the following three levels in accordance with theobservability and significance of the inputs used to measure the fair value.
Level 1: Fair values measured by unadjusted quoted prices in active markets for identical assets or liabilities
Level 2: Fair values measured by inputs which are directly or indirectly observable other than Level 1 inputs
Level 3: Fair values measured by significant unobservable inputs
When several inputs that have significant impact on fair value measurement are used and those inputs are
categorized into different levels, the fair value is categorized into the lowest priority level for fair value
measurement among the levels to which each of the inputs belongs.
(1) Financial assets and liabilities recorded at fair values on the interim consolidated balance sheet

As of September 30, 2023
Monetary claims bought
Available-for-sale securities
Securities *1
Trading securities
OthersAvailable-for-sale securities
National government bonds andlocal government bonds
Corporate bonds
Domestic stocks
Foreign bonds
OthersTotal assets
Derivative financial instruments *2
Currency-related
Stock-related

Level 1¥

- ¥595,071595,071
14,844
489,680
1,145
89,399595,071-

Millions of Yen
Fair Value
Level 2
Level 3
- ¥
846 ¥
846
979,025
32,11027,90827,908951,116
32,110648
374,419
381,893
194,155
979,025(9,138)(9,138)-32,11032,957
1,745
1,745

Total
846
846
1,606,207
27,90827,908
1,578,298
15,493
374,419489,680
415,150
283,554
1,607,053(7,392)(9,138)1,745*1 Investment trusts for which the treatments are applied in accordance with Paragraph 24-3 and 24-9 of“ Implementation Guidance on Accounting Standard for Fair Value Measurement” are not included in the table
above.The amount of the investment trusts which are accounted for in accordance with Paragraph 24-3 of theimplementation guidance, reported in the interim non-consolidated balance sheet was \149,423 million as of
September 30, 2023. The amount of the investment trusts which are accounted for in accordance with Paragraph24-9 of the implementation guidance, reported in the interim non-consolidated balance sheet was \5,228 million
as of September 30, 2023.
*2 Assets and liabilities generated by derivative financial instruments are offset and presented net. Net liabilities intotal are presented in parentheses.

46

Asahi Mutual Life Insurance Company

i)Investment trusts which are accounted for in accordance with Paragraph 24-3 and 24-9 of“Implementation Guidance on Accounting Standard for Fair Value Measurement”
a)Reconciliation between the beginning and ending balance, and net unrealized gains (losses)
recognized as gains (losses) for the interim period, of the investment trusts which areaccounted for in accordance with Paragraph 24-3 of “Implementation Guidance on AccountingStandard for Fair Value Measurement”

Beginning balance
Gains (losses) and other comprehensive income forthe interim period:
Gains (losses) recorded for the interim period *1
Other comprehensive income recorded for the interim period *2Net amount of purchase, sale and redemption
Amount of investment trusts whose NAV is deemed as market value
Amount of investment trusts whose NAV is not deemed as
market value
Ending balance
Net unrealized gains (losses) on investment trusts held at the balance
sheet date among the amount recorded to gains (losses) for theinterim period *1

Millions of Yen
Six months ended
September 30, 2023¥
134,005
9,837
1,144
8,692
5,580
149,423

1,144*1 Those amounts are included in investment income and investment expenses in the interim
consolidated statement of income.
*2 Those amounts are included in net unrealized gains (losses) on available-for-sale securities,
net of tax in other comprehensive income in the interim consolidated statement ofcomprehensive income.

b)

Breakdown of balance by restriction on cancellation as of the end of interim period
Millions of Yen
As of
September 30, 2023
Investment trusts which need more than 1 month to cancel
from the notification of cancellation
Other than above

47¥

42,938106,484

Asahi Mutual Life Insurance Company

c)Reconciliation between the beginning and ending balance, and net unrealized gains (losses)
recognized as gains (losses) for the interim period, of the investment trusts which areaccounted for in accordance with Paragraph 24-9 of “Implementation Guidance on AccountingStandard for Fair Value Measurement”

Beginning balance
Gains (losses) and other comprehensive income forthe interim period:
Gains (losses) recorded for the interim period *1
Other comprehensive income recorded for the interim period *2Net amount of purchase, sale, and redemption
Amount of investment trusts whose NAV is deemed as market value
Amount of investment trusts whose NAV is not deemed as
market value
Ending balance
Net unrealized gains (losses) on investment trusts held at the balance
sheet date among the amount recorded to gains (losses) for
the interim period *1

Millions of Yen
Six months ended
September 30, 2023
¥
5,196
31
31
(0)
5,228

-

*1 Those amounts are included in investment income and investment expenses in the interim
consolidated statement of income.
*2 Those amounts are included in net unrealized gains (losses) on available-for-sale securities,
net of tax in other comprehensive income in the interim consolidated statement ofcomprehensive income.

48

Asahi Mutual Life Insurance Company

(2) Financial assets and liabilities not recorded at fair values on the interim consolidated balance sheet

As of September 30, 2023
Monetary claims bought
Held-to-maturity debt securities
Securities
Held-to-maturity debt securities
National government bonds andlocal government bonds
Corporate bonds
Foreign bonds
Policy-reserve-matching bonds
National government bonds andlocal government bonds
Corporate bonds
Loans
Policy loans
Industrial and consumer loans
Total assets
Bonds payable
Loans payable
Total liabilities

Level 1¥- ¥1,720,141
35,871Millions of Yen
Fair Value
Level 2
Level 3
19,590 ¥412 ¥19,590412
494,449
186,880
75,201
186,880

Total
20,00320,0032,401,471
297,953

35,871--35,871

1,684,270

75,201
419,248

186,880-

75,201
186,880
2,103,518

1,684,270

43,298-1,727,568

1,720,141-

375,950
514,040
102,325
102,325

315,483
29,368286,115
502,777
56,63856,638375,950
315,483
29,368286,115
2,736,958
102,325
56,638
158,963(3) Description of the evaluation methods and inputs used to measure fair valuei)Securities including monetary claims bought which are treated as securities based on “AccountingStandard for Financial Instruments” (ASBJ Statement No. 10)
Fair values of securities for which unadjusted quoted market prices in active markets are available
are categorized as Level 1, which mainly include listed stocks, listed investment trusts andgovernment bonds. In the case the market is inactive even if the quoted market price is available,
those securities are categorized as Level 2, which mainly include corporate bonds and foreign bonds.
In the case the quoted market price is not available, fair values are measured by evaluation methods
such as discounting future cash flows. In evaluation, the Company maximizes the use of observable
inputs including swap rates, interest rate swap spreads, currency basis and others. When significant
unobservable inputs are used to measure fair values, those securities are categorized as Level 3.
The fair value of unlisted investment trusts, which have no restriction on cancellation that issignificant enough to require compensation for risk from market participants, are based on thequoted prices offered by counterparty financial institutions and categorized as level 2.

ii)

Loans
As credit exposure for policy loans without specific repayment periods is limited to the amount of
the cash surrender value, the Company considers book value as fair value with assumption that fairvalue approximates book value in light of factors such as projected repayment period and interest
terms. Policy loans are categorized as level 3.

49

Asahi Mutual Life Insurance Company

As for industrial and consumer loans, the fair value of loans is stated at theoretical prices calculatedby discounting the future cash flows to the present value by type of loan, using market interest rates
with some adjustments based on internal credit rating. Industrial and consumer loans are categorized
as level 3. The fair value of loans to legally bankrupt borrowers, substantially bankrupt borrowers
and borrowers with high possibility of bankruptcy is stated at the amounts by deducting estimatedlosses from the book value before direct write-offs. Loans to legally bankrupt borrowers,
substantially bankrupt borrowers and borrowers with high possibility of bankruptcy are categorized
as level 3.
iii) Bonds payable
The fair value of bonds payable issued by the Company is stated at fair market value. Bonds payableissued by the Company are categorized as level 2. The fair value of bonds payable for which
designated hedge accounting (“Furiate-shori”) for currency swaps are applied is stated at fair market
value added by the fair value of currency swaps. The Company adopts prices obtained from external
information venders as the fair value of currency swaps.
iv)

Loans payableAs for loans payable, the fair value of loans is stated at theoretical prices calculated by discounting
the future cash flows to the present value, using market interest rates with some adjustments basedon the credit risk. Loans payable are categorized as level 3.

v)

Derivative financial instruments
As for derivative financial instruments, the fair values of foreign currency forward contracts arestated at theoretical prices calculated by the Company based on the TTM at the balance sheet date.
The fair values of currency options, equity options, interest rate swaptions and equity forward
contracts are stated at the quoted prices offered by counterparty financial institutions.
In evaluation of derivative financial instruments, the Company maximizes the use of observable
inputs. In the case unobservable inputs are not used or impact of unobservable inputs are notmaterial, derivative financial instruments are categorized as level 2. In the case significant
unobservable inputs are used, derivative financial instruments are categorized as level 3.

50Asahi Mutual Life Insurance Company

(4) Quantitative information about financial assets and liabilities measured and stated in the interim
consolidated balance sheet at fair value and categorized as Level 3i)Quantitative information on significant unobservable inputs
Quoted prices obtained from third parties are used for fair values categorized as level 3 without
adjustment.

ⅱ)

Reconciliation between the beginning and ending balance, and net unrealized gains (losses)
recognized as gains (losses) for the interim period
Millions of Yen
Monetary
Derivative
Securities
claimsfinancial
Six months ended
Total
Available-for- Available-forinstruments
September 30, 2023(i) + (ii)sale securities sale securities
Stock-related
OthersForeign bonds(i)（ii）
Beginning balance¥
897 ¥64,899 ¥65,796 ¥550
Gains (losses) and other comprehensive
income for the interim period:
(41)
9,108
9,066
2,989
Gains (losses) recorded for theinterim period *1
(10)
3,958
3,947
1,361
Other comprehensive income recorded
for the interim period *2
(31)
5,150
5,119
1,628
Net amount of purchase, sale, issue andsettlement(9)(41,897)(41,906)(1,794)
Transfer to fair values of Level 3
Transfer from fair values of Level 3
Ending balance
846
32,11032,957
1,745
Net unrealized gains (losses) on financial
assets and liabilities held at the balance
sheet date among the amount recorded to
(10)
3,958
3,947
(565)
gains (losses) for the interim period *1*1 Those amounts are included in investment income and investment expenses in the interim consolidated
statement of income.
*2 Those amounts are included in net unrealized gains (losses) on available-for-sale securities, net of tax in othercomprehensive income in the interim consolidated statement of comprehensive income.

iii) Description of the fair value evaluation process
The Company establishes policies and procedures for measuring the fair value in actuarial andaccounting department and risk management department. In accordance with these policies andprocedures, risk management department measure the fair value. The validity of the evaluation
methods and inputs used to measure fair value and the appropriateness of categorization of fairvalue are verified in the independent division in the risk management department.
In fair value measurement, valuation models in which the nature, characteristics and risks ofindividual assets are most appropriately reflected are used. In addition, when quoted prices obtained
from third parties are used, the validity of the prices is verified by appropriate methods such asconfirmation of evaluation method and used inputs and comparison with the fair values of similar
financial instruments.

51

Asahi Mutual Life Insurance Company

4.

Investments and Rental Properties

The fair values of investment and rental properties are omitted because there have been no significant changes
compared with the corresponding fair values at the end of the previous fiscal year.
5.

Claims

The total amount of claims against bankrupt and quasi-bankrupt obligors, claims with collection risk,delinquent loans three or more months past due and restructured loans, which were included in claims, was¥485 million as of September 30, 2023.
i)

Claims against bankrupt and quasi-bankrupt obligors were ¥376 million as of September 30, 2023.

ii)

The Company does not have claims with collection risk as of September 30, 2023.

iii) Delinquent loans three or more months past due were ¥88 million as of September 30, 2023.
iv)

Restructured loans were ¥20 million as of September 30, 2023.

Claims against bankrupt and quasi-bankrupt obligors are claims to obligors who are subject to bankruptcy,
corporate reorganization or rehabilitation or other similar proceedings and other obligors in serious financial
difficulties.
Claims with collection risk are claims to obligors with deteriorated financial condition and results of operations
from which it is unlikely that the principal and interest on the claims will be recovered, excluding those claims
classified as claims against bankrupt and quasi-bankrupt obligors.
Delinquent loans three or more months past due are loans for which interest payments or repayments ofprincipal are delinquent for three months or more from the due dates under the terms of the related loan
agreements, excluding those claims classified as claims against bankrupt and quasi-bankrupt obligors andclaims with collection risk.
Restructured loans are loans for which certain concessions favorable to borrowers, such as interest reduction
or exemptions, rescheduling of due dates of principal or interest payments, waivers of claim or other terms,
have been negotiated for the purpose of assisting and supporting the borrowers in the restructuring of theirbusinesses. This category excludes claims classified as claims against bankrupt and quasi-bankrupt obligors,
claims with collection risk and delinquent loans three or more months past due.
The direct write-offs related to claims decreased the amount of claims against bankrupt and quasi-bankrupt
obligors described above by ¥3 million as of September 30, 2023.
6.

Separate Accounts

Total assets in separate accounts provided for in Article 118 of the Insurance Business Act were ¥28,152
million as of September 30, 2023. The amounts of separate account liabilities were the same as separate
account assets.

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Asahi Mutual Life Insurance Company

7.

Reserve for Dividends to Policyholders

The change in reserve for dividends to policyholders for the interim period ended September 30, 2023 was asfollows:

Balance at the beginning of the interim period
Transfer to reserve from surplus in the previous fiscal year
Dividends to policyholders paid out during the interim period
Increase in interest
Balance at the end of the interim period

8.

Millions of Yen
Six months ended
September 30, 2023¥
27,103
2,497
1,637
1
¥
27,965

Pledged Assets

Assets pledged as collateral were securities in the amount of ¥9,401 million as of September 30, 2023.
9.

Unamortized Ceding Commissions

The amount of unamortized ceding commissions for reinsurance contracts stipulated in Article 1, Paragraph 5of the Japanese Ministry of Finance Public Notice No. 50, 1996 was ¥35,184 million as of September 30, 2023.
10. Securities Lent under Lending Agreements
The amount of securities lent under lending agreements was ¥200,607 million as of September 30, 2023.
11. Assets with Rights to Sell
The Company has the legal right to sell or collateralize securities borrowed under loan agreements. The market
value of these assets that were not sold or pledged as collateral was ¥12,062 million as of September 30, 2023.
No assets were pledged as collateral as of September 30, 2023.
12. Commitment LineAs of September 30, 2023, there were unused commitment line agreements under which the Company is thelender of ¥9,504 million.
13. Subordinated Bonds Payable
As of September 30, 2023, bonds payable are subordinated bonds payable, for which the repayments aresubordinated to other obligations.
14. Subordinated Loans Payable
As of September 30, 2023, other liabilities included subordinated loans payable of ¥44,000 million, for which
the repayments are subordinated to other obligations.

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Asahi Mutual Life Insurance Company

III. Notes to Unaudited Consolidated Statement of Income
1.

Investment Income and Expenses

The major components of gains on sales of securities were as follows:

Domestic bonds
Domestic stocks and other securities
Foreign securities

Millions of Yen
Six months ended
September 30, 2023
¥
3,156
2,341
1,704

The major components of losses on sales of securities were as follows:

Domestic bonds
Domestic stocks and other securities
Foreign securities

Millions of Yen
Six months ended
September 30, 2023
¥
5,571
500
23,764The major components of losses on valuation of securities were as follows:

Domestic stocks and other securities
Foreign securities

2.

Millions of Yen
Six months ended
September 30, 2023¥
00

Reinsurance Revenue and Reinsurance Premiums

The increased amount of unamortized ceding commissions for reinsurance contracts stipulated in Article 1,
Paragraph 5 of the Japanese Ministry of Finance Public Notice No. 50, 1996 for the interim period ended
September 30, 2023 was ¥16,105 million, which was included in reinsurance revenue among premium andother income.
The decreased amount of unamortized ceding commissions for reinsurance contracts stipulated in Article 1,
Paragraph 5 of the Japanese Ministry of Finance Public Notice No. 50, 1996 for the interim period ended
September 30, 2023 was ¥7,027 million, which was included in reinsurance premiums among claims and otherpayments.
3.

Income Tax Expense

The simplified method is applied for tax effect accounting to calculate income tax expense of the Company
and part of its subsidiaries for the interim period ended September 30. Therefore, deferred taxes are included
in income taxes.

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Asahi Mutual Life Insurance Company

(6) Consolidated Solvency Margin Ratio(Millions of Yen)

As of March 31, 2023 As of September 30, 2023

Total solvency margin（Ａ）

979,054

998,010

Foundation funds and surplus

326,009

330,940

Reserve for price fluctuation

38,21039,290Contingency reserve

64,26345,286--

Catastrophe loss reserve
General allowance for possible loan losses

347

427

(Net unrealized gains on available-for-sale securities (before tax effect) anddeferred hedge gains (before tax effect)) × 90% (in case of losses： × 100%)

149,491

232,283

Net unrealized gains on land × 85%

35,037

34,639(2,924)(2,452)

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

148,282

148,342

Qualifying subordinated debt

199,555

146,609

Excess amount of policy reserves based on full-time Zillmer method andqualifying subordinated debt excluded from the calculation of solvency margin--

Deduction--

20,78022,644

199,938

218,935(in case of losses： × 100%)

Sum of unrealized actuarial differences and unrealized past service cost

OthersTotal amount of risk(

R +R +R +R ) +( R +R +R ) +R +R
2

2

1

5

2

8

9

（Ｂ）

2

2

3

7

4

6

Insurance risk

R1

11,55811,308

Ordinary insurance risk

R5

-

-

Disaster insurance risk

R6

-

-

Third sector insurance risk

R812,002

12,474

Small amount short-term insurance provider insurance risk

R9

-

-

Risk of assumed yield

R2

64,04962,918Minimum guarantee risk

R7

1,004

998

Investment risk

R3

129,105

148,960

Operational risk

R4

4,354

4,733

979.3%

911.6%

Solvency margin ratio(Ａ) / {(1/2)×(Ｂ)} × 100

Notes:
1. The figures above are calculated based on Articles 86-2 and 88 of the Enforcement Regulation of the Insurance BusinessAct and the Public Notice No.23 of the Financial Services Agency of 2011.
2. "Excess amount of policy reserves based on full-time Zillmer method", "Qualifying subordinated debt" and "Excess
amount of policy reserves based on full-time Zillmer method and qualifying subordinated debt excluded from the calculationof solvency margin" are calculated based on the Public Notice No.25 of the Financial Services Agency of 2011.
3. "Minimum guarantee risk" is calculated by standard method.

(7) Segment Information
The Company and its consolidated subsidiaries operate investment advisory business, etc., in addition to life insurance
business in Japan. However, information on these segments and related information are omitted because they represent
such a minor proportion of total segments.

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Asahi Mutual Life Insurance Company