November 24, 2021

Financial Results for the Six Months Ended September 30, 2021
Asahi Mutual Life Insurance Company (the “Company”; President: Hiroki Kimura) announces financial
results for the six months ended September 30, 2021

［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 Categories of Obligors

･････

Ｐ28

８．Risk-monitored Loans

･････

Ｐ29

９．Solvency Margin Ratio

･････

Ｐ30

10．Status of Separate Account

･････

Ｐ31

11．Status of the Company, Subsidiaries and Affiliates

･････

Ｐ32

１．Business Highlights(1) Sum Insured of Policies in Force and New Policies(i) Policies in Force
As of March 31, 2021
Number of policies

As of September 30, 2021

Amount (100 millions of Yen)

(Thousands)

Number of policies

Amount (100 millions of Yen)

(Thousands)

Changes(%, Pre-FYE)

Changes(%, Pre-FYE)

Individual insurance

7,349

132,551

7,383

100.5

127,700

96.3

Individual annuities

506

20,603494

97.6

20,02997.2

Group insurance-

14,475--

14,25598.5

Group annuities

-

154

-

-

150

97.6

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, 2020
Number of policies

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

Net increase by
conversion

Individual insurance

338

709

1,333

(623)

Individual annuities

-

(45)

-

(45)

Group insurance

-

185

185

-

Group annuities

-

-

-

-

Six months ended September 30, 2021
Number of policies(Thousands)

Amount (100 millions of Yen)

Changes(%, YoY)

Changes(%, YoY)

New
policies

Net increase by
conversion

Individual insurance

393

116.4

886

124.9

1,578

(691)

Individual annuities

-

-

(24)

-

-

(24)

Group insurance

-

-

93

50.2

93

-

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, 2021

As of September 30, 2021
Changes(%, Pre-FYE)

Individual insurance

3,889

3,873

99.6

Individual annuities

1,322

1,287

97.4

Total

5,212

5,160

99.0

2,214

2,243

101.3

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

Six months ended
September 30, 2020

Six months ended
September 30, 2021

Individual insurance

111

132

119.1

Individual annuities

(0)

(0)

-

110

132

119.6

91

112

122.7

Total
Third-sector products

Changes(%, YoY)

Notes:
1. Annualized premiums are calculated by multiplying factors according to the premium payment method(for single premium contracts, the amount 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, 2021

As of September 30, 2021

AmountAmountPercentage

146,692

2.7

Percentage

146,621

2.7

25,0940.5

23,802

0.4

4,586,013

83.2

4,574,708

83.2

Domestic bonds

2,708,646

49.1

2,673,593

48.6

Domestic stocks

438,359

8.0

448,453

8.2

Foreign securities

1,357,677

24.6

1,377,876

25.1

Foreign bonds

1,040,834

18.9

1,029,251

18.7

316,8425.7

348,625

6.3

81,3301.5

74,785

1.4

Securities

Foreign stocks and other foreign securities
Other securities
Loans

303,4515.5

300,247

5.5

Policy loans

35,1820.6

33,6400.6

Industrial and consumer loans

268,268

4.9

266,6074.9

373,204

6.8

370,773

6.7

Real estate
Deferred tax assets
Others----77,225

1.4

81,203

1.5

(406)

(0.0)

(441)

(0.0)

5,511,274

100.0

5,496,915

100.0

1,452,046

26.3

1,478,883

26.9

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, 2020

Six months ended
September 30, 2021

AmountAmountCash, deposits, call loans

20,183(71)

Monetary claims bought(857)(1,291)

128,757(11,304)

Domestic bonds

16,641(35,052)

Domestic stocks

62,083

10,093Foreign securities

35,842

20,199Foreign bonds(23,243)(11,583)

Foreign stocks and other foreign securities

59,086

31,782

Securities

Other securities

14,189(6,545)(62,039)(3,203)

Policy loans(2,399)(1,542)

Industrial and consumer loans(59,640)(1,661)

Loans

Real estate(255)(2,430)

Deferred tax assets(8,044)-

Others(24,042)

3,978

52

(35)

53,754(14,358)

36,07026,837

Allowance for possible loan losses
Total
Foreign currency-denominated assets
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, 2020
56,980Interest, dividends and other income
Interest on deposits

Six months ended
September 30, 2021
60,00800Interest and dividends on securities

45,61449,363

Interest on loans

2,535

2,078

Rent revenue from real estate

8,238

8,128

Other interest and dividends

592

438

11,466

6,820

8,399

2,739

777

4,076

2,289

4

-

-

Gains on redemption of securities

464

Gains on derivative financial instruments, net--

Foreign exchange gains, net-

139

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
Others

Reversal of allowance for possible loan losses

57

-

3,459

3,419

71,96870,452Six months ended
September 30, 2020
2,210

Six months ended
September 30, 2021
2,586

Losses on trading securities

485-

Losses on sales of securities

1,643

916

298

17

1,127

346

217

552

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

-

-

125

4

-

-

123

4

Losses on valuation of foreign securities

1-

Others

-

-

30

15

5,134

2,068

Losses on valuation of securities
Losses on valuation of domestic bonds
Losses on valuation of domestic stocks and other securities

Losses on redemption of securities
Losses on derivative financial instruments, net
Foreign exchange losses, net

623-

Provision for allowance for possible loan losses-

34

Write-offs of loans

0

0

2,727

2,804

Depreciation of rental real estate and other assets
Other investment expenses
Total

4

5,211

6,000

18,193

14,431

Asahi Mutual Life Insurance Company

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

As of March 31, 2021
AmountTrading securities

As of September 30, 2021

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, 2021
Book value Fair value

As of September 30, 2021

Gains/losses
Gains

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

Book value Fair value

Gains/losses

Losses321,005

360,399

39,39439,4002,039,060

2,254,994

215,933

226,245

(6)

Gains

Losses308,775

346,53137,75637,756(0)(10,311) 2,033,907

2,244,207

210,300

220,905(10,605)

-

-

-

-

-

-

-

-

-

Available-for-sale securities 1,935,564

2,216,388

280,823

317,280(36,456) 1,923,113

2,216,834

293,720

324,759(31,038)

527,705

14,587

17,240(2,653)494,270

508,758

14,487

17,004(2,516)

Domestic bonds

513,117-

Domestic stocks

175,768

403,715

227,947

240,553(12,605)

173,745

409,468

235,723

248,180(12,457)

Foreign securities

1,170,153

1,202,667

32,51352,865(20,351) 1,183,027

1,222,866

39,83954,960(15,120)

Foreign bonds
Foreign stocks andother foreign securities
Other securities

853,897885,834

31,93646,194(14,257)

843,970874,251

30,28040,838(10,558)

316,255

316,832

577

6,671

(6,094)

339,056

348,615

9,559

14,121(4,562)75,642

81,330

5,687

6,533

(845)

71,21674,785

3,569

4,513

(943)

Monetary claims bought
Negotiable certificates ofdeposit
Others

882

969

86

86

-

854

955

100

100

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Total

4,295,630

4,831,782

536,151

582,926(46,774) 4,265,795

4,807,573

541,777

583,421(41,643)

Domestic bonds

2,694,058

2,931,420

237,362

250,333(12,971) 2,659,105

2,890,063

230,957

244,080(13,122)

Domestic stocks

175,768

403,715

227,947

240,553(12,605)

173,745

409,468

235,723

248,180(12,457)

Foreign securities

1,325,153

1,387,899

62,746

83,098(20,351) 1,338,027

1,407,301

69,27484,394(15,120)

Foreign bonds
Foreign stocks andother foreign securities
Other securities

1,008,897

1,071,066

62,16876,426(14,257)

998,970

1,058,685

59,71570,273(10,558)

316,255

316,832

577

6,671

(6,094)

339,056

348,615

9,559

14,121(4,562)75,642

81,330

5,687

6,533

(845)

71,21674,785

3,569

4,513

(943)

Monetary claims bought
Negotiable certificates ofdeposit
Others

25,007

27,415

2,408

2,408

-

23,701

25,954

2,252

2,252

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

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, 2021 As of September 30, 2021

Stocks of subsidiaries

21,367

24,777Available-for-sale securities

13,286

14,218Domestic stocks

13,275

14,207

Foreign stocks

11

11

Others--34,65438,995Total

5Asahi 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, 2021

As of September 30, 2021

Gains/losses

Book value Fair value

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

Gains/losses

Book value Fair value

Losses321,005

360,399

39,39439,4002,039,060

2,254,994

215,933

226,245

21,367

21,367--Available-for-sale securities 1,948,851

2,229,674

280,822317,280

(6)

Gains

Losses308,775

346,53137,75637,756(0)(10,311) 2,033,907

2,244,207

210,300

220,905(10,605)

24,777

24,777---(36,457) 1,937,332-

2,231,051

293,719

324,759(31,039)

Domestic bonds

513,117

527,705

14,587

17,240(2,653)494,270

508,758

14,487

17,004(2,516)

Domestic stocks

189,044416,991

227,947

240,553(12,605)

187,952

423,675

235,723

248,180(12,457)

Foreign securities

1,170,164

1,202,677

32,512

52,865(20,352) 1,183,038

1,222,876

39,83854,960(15,121)853,897885,834

31,93646,194(14,257)

843,970874,251

30,28040,838(10,558)

316,266

316,842

576

6,671

(6,095)339,067

348,625

9,558

14,121(4,563)75,642

81,330

5,687

6,533

(845)

71,21674,785

3,569

4,513

(943)

882

969

86

86

-

854

955

100

100

-

-

-

-

-

-

-

-

-

-

-

-

Foreign bonds
Foreign stocks andother foreign securities
Other securities
Monetary claims bought
Negotiable certificates ofdeposit
Others

-

-

-

-

-

-

-

-

-

4,330,284

4,866,435

536,150

582,926(46,775) 4,304,791

4,846,568

541,776

583,421(41,644)

Domestic bonds

2,694,058

2,931,420

237,362

250,333(12,971) 2,659,105

2,890,063

230,957

244,080(13,122)

Domestic stocks

210,411438,359

227,947

240,553(12,605)

212,729

448,453

235,723

248,180(12,457)

Foreign securities

1,325,164

1,387,909

62,74583,098(20,352) 1,338,038

1,407,311

69,27384,394(15,121)

Foreign bonds
Foreign stocks andother foreign securities
Other securities

1,008,897

1,071,066

62,16876,426(14,257)

998,970

1,058,685

59,71570,273(10,558)

316,266

316,842

576

6,671

(6,095)339,067

348,625

9,558

14,121(4,563)75,642

81,330

5,687

6,533

(845)

71,21674,785

3,569

4,513

(943)

Monetary claims bought
Negotiable certificates ofdeposit
Others

25,007

27,415

2,408

2,408

-

23,701

25,954

2,252

2,252

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

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, 2021

As of September 30, 2021

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

Land

225,244 288,073
62,828 224,716 287,477
Notes:
1. Fair Value is calculated based on appraisal value for property tax and others.
2. The amount above includes leasehold.

6

62,760Asahi Mutual Life Insurance Company

３. Unaudited Non-consolidated Balance Sheets(Millions of Yen)

As of March 31, 2021
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
Customers’ liabilities under acceptances and guarantees
Allowance for possible loan losses
Total assets

35,368113,000
25,0944,612,320
1,692,106
49,130973,538
447,371
1,368,844
303,451
35,182
268,268
377,849
26,79714987
44,692233
1(406)
5,539,404

As of September 30, 2021
32,320116,000
23,8024,601,352
1,677,604
52,446950,104
457,069
1,389,342
300,247
33,640266,607374,835
26,82414
327
49,908198
0(441)
5,525,390(Millions of Yen)

As of March 31, 2021
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-salesecurities, net of tax
Land revaluation differences
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets
7

As of September 30, 2021

4,477,995
28,572
4,419,372
30,050680
127,773
292,817
5,042
1,459
851
285,464
30,85645,68022,826
16,2681
5,014,899

4,450,551
28,576
4,391,390
30,584
330
127,773
279,841
3,955
1,083
854
273,948
30,551
46,91027,034
16,1680
4,979,162

91,000166,000
281
99,378328
99,05044,4007,091
47,558356,660

91,000166,000
281
112,668
347
112,32153,500
6,983
51,838369,950

213,200

221,889(45,354)
167,845524,505
5,539,404(45,612)
176,277
546,228
5,525,390

Asahi Mutual Life Insurance Company

４. Unaudited Non-consolidated Statements of Income(Millions of Yen)

Six months ended
September 30, 2020

Six months ended
September 30, 2021

Ordinary income:

298,190

297,802

Premium and other income:

193,212

192,500

Insurance premiums

192,284

191,636

74,15871,818Interest, dividends and other income

56,98060,008

Gains on sales of securities

11,4666,820

Investment gains on separate accounts

2,190

1,365

Other ordinary income

30,81933,484

Ordinary expenses:

273,412271,460

Claims and other payments:

184,573

183,528

Claims53,97753,257

Annuities

57,901

55,666

Benefits

32,921

33,516

Surrender benefits

37,222

38,700

Other payments

1,579

1,261

Provision for policy reserves and other reserves:

1

5

Provision for reserve for outstanding claims-

4

Provision for interest on policyholders’ dividend reserves

11Investment expenses:

18,193

14,431

Interest expenses

2,210

2,586

Losses on trading securities

485-

Losses on sales of securities

1,643

916

125

4

5,134

2,068

Operating expenses

53,50456,901Other ordinary expenses

17,13916,592

Ordinary profit

24,777

26,342Extraordinary gains

33

340

Extraordinary losses

2,270

1,916

Surplus before income taxes

22,54024,767

Income taxes including deferred taxes

5,313

5,491

Total income taxes

5,313

5,491

Net surplus

17,227

19,276

Investment income:Losses on valuation of securities
Losses on derivative financial instruments

8

Asahi Mutual Life Insurance Company

５．Unaudited Non-consolidated Statements of Changes in Net Assets
Six months ended September 30, 2020

(Millions of Yen)
Foundation funds and others
Surplus

Beginning balance

Foundation
funds

Reserve forredemption offoundation
funds

Reserve forrevaluation

91,000166,000

281

Total
foundation
funds andothersOther surplus
Reserve for
future losses

Reserve forfund
redemption

Equalized
reserve fordividends topolicyholders

Unappropriatedsurplus(loss)

310

35,3007,318

38,89081,819339,100(1,794)(1,794)(1,794)Total
surplus

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

18

Additions to reserve for future losses(18)

Payment of interest on foundation
funds(4,081)(4,081)(4,081)

Net surplus

17,227

17,227

17,22749

49

49

Additions to reserve for fundredemption

9,100

Reversal of equalized reserve fordividends to policyholders(9,100)(227)

Reversal of land revaluationdifferences

227

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

-

-

-

18

9,100

(227)

2,510

11,401

11,40191,000166,000

281

328

44,4007,091

41,40093,220350,502

Total
valuation andtranslation
adjustments

Total
net assets

52,442391,543

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

97,625Landrevaluationdifferences(45,183)

Changes in the interim period:
Additions to reserve for dividends topolicyholders(1,794)

Additions to reserve for future losses
Payment of interest on foundation
funds(4,081)

Net surplus

17,227

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

49
71,439(49)

71,38971,389Net changes in the interim period

71,439(49)

71,38982,790Ending balance

169,064(45,233)

123,831474,333

9

Asahi Mutual Life Insurance Company

Six months ended September 30, 2021

(Millions of Yen)
Foundation funds and others
Surplus

Beginning balance

Foundation
funds

Reserve forredemption offoundation
funds

Reserve forrevaluation

91,000166,000

281

Other surplus

Total
foundation
funds andothersReserve for
future losses

Reserve forfund
redemption

Equalized
reserve fordividends topolicyholders

Unappropriatedsurplus(loss)

328

44,4007,091

47,55899,378356,660(2,153)(2,153)(2,153)Total
surplus

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

19

Additions to reserve for future losses(19)

Payment of interest on foundation
funds(4,089)(4,089)(4,089)Net surplus

19,276

19,276

19,276

257

257

257

Additions to reserve for fundredemption

9,100

Reversal of equalized reserve fordividends to policyholders(9,100)(108)

Reversal of land revaluationdifferences

108

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

-

-

-

19

9,100

(108)

4,279

13,29013,29091,000166,000

281

347

53,500

6,983

51,838112,668

369,950

Total
valuation andtranslation
adjustments

Total
net assets

167,845524,505

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

213,200Land
revaluationdifferences(45,354)

Changes in the interim period:
Additions to reserve for dividends topolicyholders(2,153)

Additions to reserve for future losses
Payment of interest on foundation
funds(4,089)Net surplus

19,276

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

257
8,688

(257)

8,431

8,431

8,688

(257)

8,431

21,722

221,889(45,612)

176,277

546,228

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 theaccounts maintained by Asahi Mutual Life Insurance Company (the “Company”) in accordancewith the provisions set forth in the Insurance Business Act of Japan and its related rules andregulations 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 fromaccounting principles generally accepted in countries and jurisdictions 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 the disclosure 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 have been 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 areequivalent to securities 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 Treatmentof Accounting and Auditing Concerning Policy-reserve-matching Bonds in Insurance
Industry” (Industry Audit Committee Report No. 21 issued by the Japanese Instituteof Certified Public Accountants (“JICPA”)), are stated at amortized cost (straight-line
method) determined by the moving average method.

11

Asahi Mutual Life Insurance Company

iv) Investments in subsidiaries and affiliates are stated at cost.
v)

Available-for-sale securities except for the following are stated at fair market value
based on the market 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 atamortized cost (straight-line method) determined by the moving average method.
Stocks and others without a market price are stated at cost determined by the moving
average method. Net unrealized gains or losses on these available-for-sale securities,
net of tax, 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) of individual life insurance and individual annuities as policyreserve-matching bonds in accordance with “Temporary Treatment of Accounting and
Auditing Concerning Policy-reserve-matching Bonds in Insurance Industry” (Industry
Audit Committee Report No. 21 issued by the JICPA).
Since the interim period starting from April 1, 2021, the Company changed its liability
cash flow, which is the premise of assessing the duration to outstanding insurance
liabilities, from a “Term of future 30 years” to a “Whole period” for the sub-group including
Individual life Insurance and Individual Annuities (excluding Whole Life Insurance withvariable interest rate accumulation, Accumulation Insurance with variable interest rates
and New Single Premium Individual Annuity effective on and after April 2, 2012). Thischange did not have any effects on the non-consolidated balance sheet and non-consolidated
statement of income as of and for the interim period ended September 30, 2021.
(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 ofLand (Act No. 34 promulgated on March 31, 1998). The difference between fair value andbook value resulting from the revaluation, net of related taxes, is recorded as land
revaluation differences as a separate component of net assets and the related tax isrecorded 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,

12

Asahi Mutual Life Insurance Company

Item 5 of the said Ordinance with certain 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(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 standardsof self-assessment 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 whoare substantially bankrupt (hereinafter “substantially bankrupt borrowers”), theCompany provides the remaining amount of credits after the direct write-off described
below and the deductions of the amount expected to be collected through the disposalof collateral or the execution of guarantees.

ii)

For credit to borrowers who are not currently bankrupt but have a high risk ofbankruptcy (hereinafter “not currently bankrupt borrowers”), the Company provides
the amounts deemed as necessary considering the borrowers’ ability to pay, within theamounts after deductions of the amount expected to be collected through the disposalof collateral or the execution of guarantees.

iii) For credit to borrowers other than the above, the Company provides the amounts
calculated by multiplying 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 self-assessment on credit quality. The results of the assessment are reviewed
by the audit department, which is 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, theamounts remaining after deductions of collateral value or the amounts collectible throughthe execution of guarantees are written-off directly from the book value as the estimated13

Asahi Mutual Life Insurance Company

uncollectible amounts. The amount written-off was ¥25 million as of September 30, 2021.
(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 theemployees’ 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 ofseven years starting the following year.

■

Prior service cost is charged to income when incurred.

(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(“Tokurei-shori”) 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 toforeign exchange rate fluctuation exposures on certain bonds, investment trusts and others
denominated in foreign currencies.
The Company also applies designated hedge accounting (“Furiate-shori”) for currency
swaps used to hedge foreign exchange rate fluctuation exposures on the foreign currencydenominated bonds issued by the Company.
The Company also applies designated hedge accounting (“Furiate-shori”) for the foreign
currency-denominated transactions other than the above.
The effectiveness of a hedge is mostly assessed by a ratio analysis, comparing thefluctuations in the fair value or cash flows of hedged items and hedging instruments.

14

Asahi Mutual Life Insurance Company

(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 fromconsumption 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) 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 therelevant amounts received.
Of insurance premiums, the portion corresponding to the period that has yet to pass as ofthe end of the interim period is set aside as policy reserves in accordance with Article 116of the Insurance Business Act and Article 69, Paragraph 1, Item 2 of the Enforcement
Regulation of the Insurance Business Act.
(13) Claims and other payments (excluding reinsurance premiums)
Claims and other payments (excluding reinsurance premiums) are recorded for insurance
policies for which amounts calculated under policy conditions have been paid in theoccurrence of insured events under the policy conditions by the relevant amounts paid.
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 theCompany has payment obligation or the occurrence of insured events has not been reported
but the Company finds that insured events have already occurred, as of the end of theinterim period.
(14) Policy reserves
Policy reserves are calculated as stated in accordance with the methods stated in thestatement of calculation procedures for insurance premiums and policy reserves (Article 4,
Paragraph 2, Item 4 of the Insurance Business Act) pursuant to Article 116, Paragraph 1of 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 prescribedby the Commissioner of Financial Services Agency (Japanese Ministry of Finance Public

15

Asahi Mutual Life Insurance Company

Notice No. 48, 1996) is applied.
In regard to the policies not subject to the standard policy reserves, the net level premium
method is applied.
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 inorder to ensure the performance of future obligations under insurance policies.

(15) Software
Capitalized software for internal use owned by the Company is amortized using thestraight-line method over the estimated useful lives.
2.

Accounting Changes

The Company has applied “Accounting Standard for Fair Value Measurement” (ASBJ
Statement No. 30, issued on July 4, 2019) and others from the interim period ended September
30, 2021. In accordance with the transitional treatment set forth in Paragraph 19 of "AccountingStandard for Fair Value Measurement" and Paragraph 44-2 of "Accounting Standard for
Financial Instruments" (ASBJ Statement No.10, July 4, 2019), the Company has applied new
accounting policies prospectively. As a result, available-for-sale securities, of which domestic
listed stocks, domestic stock exchange-traded funds, domestic listed real estate investment
trusts, foreign stock exchange-traded funds for which hedge accounting is not applied, foreign
bond exchange-traded funds for which hedge accounting is not applied and foreign currencydenominated bonds for which hedge accounting is not applied, are changed to be stated at fairvalue based on the market prices at the balance sheet date from fair value based on the averageof the market prices during the final month of the interim period.
In determining to recognize impairment losses on available-for-sale securities, the Company
has used fair value based on the average of market prices during the final month of interim
period as before.

16

Asahi Mutual Life Insurance Company

3.

Financial Instruments

The balance sheet amounts, fair values and the differences between those of major financial
assets and liabilities as of September 30, 2021 were as follows:
Millions of Yen
As of September 30, 2021

Monetary claims bought
Trading securities
Held-to-maturity debt securities
Policy-reserve-matching bonds
Available-for-sale securities
Securities
Trading securities
Held-to-maturity debt securities
Policy-reserve-matching bonds
Available-for-sale securities
Loans
Policy loans
Industrial and consumer loans
Total assets
Bonds payable
Loans payable
Total liabilities
Derivative financial instruments
Hedge accounting not applied
Hedge accounting applied

Balance Sheet
Amount\23,802–
22,847–955
4,562,357
26,643285,927
2,033,907
2,215,879
300,247
33,640266,6074,886,407
127,773
41,000168,773(6,517)(695)(5,821)

Fair Value\

25,954–24,999–955
4,808,262
26,643
321,5312,244,207
2,215,879
307,859
33,640274,219
5,142,076
130,477
42,177
172,654(6,517)(695)(5,821)

Difference\ 2,152–
2,152––
245,904–
35,604
210,300
–
7,611
–
7,611
255,668
2,704
1,177
3,881
–
–
–

* 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 not included in the table above. The amount of the unlisted stocks and others,
including investments in subsidiaries and affiliates, reported in the interim non-consolidatedbalance sheet was ¥38,994 million as of September 30, 2021.
4.

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 accordancewith the observability 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 thanLevel 1 inputs
Level 3: Fair values measured by significant unobservable inputs

17

Asahi Mutual Life Insurance Company

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 in which each of the inputs belongs.
(1) Financial assets and liabilities recorded at fair values on the interim non-consolidatedbalance sheet
Millions of Yen
As of September 30, 2021
Fair Value
Level 1
Monetary claims bought
Available-for-sale securities
Securities
Trading securities
National government bonds andlocal government bonds
Corporate bonds
Domestic stocks
Foreign stocks
Foreign bonds
Available-for-sale securities
National government bonds andlocal government bonds
Corporate bonds
Domestic stocks
Foreign stocks
Foreign bonds
Total assets
Derivative financial instruments
Currency-relatedInterest-related\––
608,085
24,886\

Level 2

Level 3––
1,184,653
1,757

\

955
955
26,390
–

Total
\

955
955
1,819,128
26,643

5,850
–
8,616
7,777
2,641
583,198

–
711
–
–
1,046
1,182,895

–
–
–
–
–
26,390

5,850
711
8,616
7,777
3,687
1,792,484

42,835–
409,4686
130,887
608,085
–
–
–

3,077
462,845––716,972
1,184,653(6,517)(6,517)–––––
26,39027,3450–045,913462,845
409,4686874,251
1,820,083(6,517)(6,517)0* 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

(2) Financial assets and liabilities not recorded at fair values on the interim non-consolidatedbalance sheet
Millions of Yen
As of September 30, 2021
Fair Value
Level 1
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 2––\

Level 3––

Total

1,819,080
37,380619,206
156,699\ 24,999
24,999127,452
127,452\

24,99924,9992,565,739
321,531

37,380––1,781,700–
99,71756,981
462,507––
127,452–

37,38099,717
184,434
2,244,207

1,781,700––––
1,819,080–––

52,659409,847–––
619,206
130,477–
130,477––
307,859
33,640274,219
460,311–
42,17742,177

1,834,359
409,847
307,859
33,640274,219
2,898,598
130,477
42,177
172,654(3) Description of the evaluation methods and inputs used to measure fair valuei)Securities including deposits and monetary claims bought which are treated as
securities based on “Accounting Standard 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 andgovernment bonds. In the case the market is inactive even if the quoted market priceis 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.
Fair values of investment trusts are measured at the disclosed net asset value andothers. Investment trusts are not categorized into any level, since “2021 Revised
Implementation Guidance” in “Implementation Guidance on Accounting Standard for

19

Asahi Mutual Life Insurance Company

Fair Value Measurement” (ASBJ Guidance No. 31, revised on June 17, 2021) is notapplied to them.
ii)

Loans
As credit exposure for policy loans without specific repayment periods is limited to theamount of the cash surrender value, the Company considers book value as fair value
with assumption that fair value 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 theoreticalprices calculated by discounting the future cash flows to the present value by type ofloan, 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 not currently
bankrupt borrowers is stated at the amounts by deducting estimated losses from thebook value before direct write-offs.

iii) Bonds payableAs for bonds payable issued by the Company, the fair value of the bonds is stated atbonds prices added by the fair value of currency swaps, as the Company applies
designated hedge accounting (“Furiate-shori”) for currency swaps. Bonds payable arecategorized as level 2, since the Company adopts market prices as bond prices andprices obtained from external information venders as the fair value of currency swaps,
and inputs are primarily interest rates and foreign exchange rates which areobservable.
iv) Loans payableAs for loans payable, the fair value of loans is stated at theoretical prices calculatedby discounting the future cash flows to the present value, using market interest rates
with some adjustments based on the Company’s credit risk. Loans payable arecategorized as level 3.
v)

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

20

Asahi Mutual Life Insurance Company

(4) Quantitative information about financial assets and liabilities measured and stated in theinterim non-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

Six months ended
September 30, 2021

Beginning balance
Gains (losses) and net
unrealized gains (losses) on
available-for-sale securities,
net of tax recorded for theinterim period:
Gains(losses) recorded forthe interim period*
Net unrealized gains (losses)
on available-for-salesecurities, net of tax
recorded for the interim
periodNet amount of purchase, sale,issue, and settlement
Transfer to fair values of Level
3
Transfer from fair values ofLevel 3Ending balance
Net unrealized gains(losses) on
financial assets and liabilities
held at the balance sheet dateamong the amount recorded togains (losses) for the interim
period*Monetary claimsboughtSecurities

Available-forsale securities

Available-forsale securities

OthersForeign bonds

(i)

（ii）

Derivative
financial
instruments

Total(i) + (ii)Interest-related\ 969\26,853\27,822

\ –

(14)

(463)

(477)

(229)

(27)

(1,121)(1,148)

(229)

13

657

671

–

–

–

–

229

–

–

–

–

–
955

–
26,390–27,345–0(27)(1,121)(1,148)(229)* Those amounts are included in investment income and investment expenses in the interim nonconsolidated statement of income.

21

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 and accounting department and risk management department. In
accordance with these policies and procedures, risk management department measure
the fair value. The validity of the evaluation methods and inputs used to measure fairvalue and the appropriateness of categorization of fair value are verified in the
independent division in risk management department.
In fair value measurement, valuation models in which the nature, characteristics andrisks of individual assets are most appropriately reflected are used. In addition, whenquoted prices obtained from third parties are used, the validity of the prices is verified
by appropriate methods such as confirmation of evaluation method and used inputs
and comparison with the fair values of similar financial instruments.
5.

Investments and Rental Properties

The fair value of investment and rental properties is omitted because there have been no
significant changes compared with the corresponding fair value at the end of the previous fiscal
year.
6.

Securities Lent under Lending Agreements

The amount of securities lent under lending agreements was ¥262,685 million as of September
30, 2021.
7.

Loans

The total amount of loans to bankrupt borrowers, delinquent loans, delinquent loans three ormore months past due and restructured loans, which were included in loans, was ¥619 million
as of September 30, 2021．
i)

Loans to bankrupt borrowers were ¥0 million as of September 30, 2021.

ii)

Delinquent loans were ¥542 million as of September 30, 2021.

iii) Delinquent loans three or more months past due were ¥55 million as of September 30, 2021.
iv) Restructured loans were ¥20 million as of September 30, 2021.
Loans to bankrupt borrowers represent loans, excluding the balances already written-off, whichmeet the conditions prescribed in Article 96, Paragraph 1, Items 3 and 4 of the Enforcement
Regulations of the Corporate Tax Act. Moreover, accruing interest on these loans is not recorded
as income after determining that principal of or interest on these loans is unlikely to be collected
due to the significant delay in repayment of principal or interest payments or for other reasons.
Accruing interest on delinquent loans is not recorded as income due to the same reasons as
described above, and delinquent loans exclude loans to bankrupt borrowers and loans for whichinterest payments have been suspended and rescheduled to assist and support the borrowers in

22

Asahi Mutual Life Insurance Company

the restructuring of their businesses.
Delinquent loans three or more months past due are loans for which interest payments or
repayments of principal are delinquent for three months or more from the due dates under theterms of the related loan agreements, excluding those loans classified as loans to bankrupt
borrowers and delinquent loans.
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 andsupporting the borrowers in the restructuring of their businesses. This category excludes loansclassified as loans to bankrupt borrowers, delinquent loans and delinquent loans three or moremonths past due.
The direct write-offs related to loans decreased the amount of loans to bankrupt borrowers
described above by ¥3 million as of September 30, 2021.
In addition, the direct write-offs related to loans decreased the amount of delinquent loans
described above by ¥22 million as of September 30, 2021.
8.

Separate Accounts

Total assets in separate accounts provided for in Article 118 of the Insurance Business Act were¥28,409 million as of September 30, 2021. The amounts of separate account liabilities were thesame as separate account assets.
9.

Reserve for Dividends to Policyholders

The change in reserve for dividends to policyholders for the interim period ended September 30,
2021 was as follows:
Millions of Yen
Six months ended
September 30, 2021
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\30,050
2,153
1,620
1
\30,584

10. Stocks of Subsidiaries and Affiliates
The amount of stocks of subsidiaries and affiliates the Company held was ¥24,777 million as of
September 30, 2021.
The Company provided capital of ¥12,600 million to Nanairo Life Insurance Co., Ltd. on October
15, 2021.

23

Asahi Mutual Life Insurance Company

11. Pledged Assets
Assets pledged as collateral were securities in the amount of ¥13,625 million as of September
30, 2021.
12. Policy Reserves for the Reinsurance Contracts
Reserves for outstanding claims for the reinsurance contracts provided in accordance with
Article 73, Paragraph 3 of the Enforcement Regulation of the Insurance Business Act whichapplies mutatis mutandis to Article 71, Paragraph 1 of the Enforcement Regulation of the
Insurance Business Act (hereinafter “reserve for outstanding claims for ceded reinsurance”)
were ¥4 million as of September 30, 2021.
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 forceded reinsurance”) were ¥292 million as of September 30, 2021.
13. 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¥78,789 million as of September 30, 2021. No assets were pledged as collateral as of September
30, 2021.
14. Commitment LineAs of September 30, 2021, there were unused commitment line agreements under which theCompany is the lender of ¥10,768 million.
15. Subordinated Bonds Payable
As of September 30, 2021, bonds payable are subordinated bonds payable, for which therepayments are subordinated to other obligations.
16. Subordinated Loans Payable
As of September 30, 2021, other liabilities included subordinated loans payable of ¥41,000
million, for which the repayments are subordinated to other obligations.
17. Contributions to Policyholders Protection Corporation
The estimated future contributions to the Life Insurance Policyholders Protection Corporationof Japan under Article 259 of the Insurance Business Act were ¥8,260 million as of September
30, 2021. These contributions are charged as operating expenses in the reporting period inwhich they are paid.

24

Asahi Mutual Life Insurance Company

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:
Millions of Yen
Six months ended
September 30, 2021
Domestic bonds
Domestic stocks and other securities
Foreign securities\2,7394,076
4The major components of losses on sales of securities were as follows:
Millions of Yen
Six months ended
September 30, 2021
Domestic bonds
Domestic stocks and other securities
Foreign securities

\ 17
346
552

The major components of losses on valuation of securities were as follows:
Millions of Yen
Six months ended
September 30, 2021
Domestic stocks and other securities

2.

\4

Policy Reserves for the Reinsurance Contracts

Reversal of reserve for outstanding claims for ceded reinsurance, which was deducted in
calculating provision for reserve for outstanding claims for the interim period ended September
30, 2021 was ¥2 million.
Reversal of policy reserves for ceded reinsurance, which was deducted in calculating reversal ofpolicy reserves for the interim period ended September 30, 2021 was ¥67 million.

25

Asahi Mutual Life Insurance Company

3.

Interest and Dividend Income

The breakdown of interest, dividends and other income was as follows:
Millions of Yen
Six months ended
September 30, 2021
Interest on deposits
Interest and dividends on securities
Interest on loans
Rent revenue from real estate
Other interest and dividends
Total

4.

\

0
49,363
2,078
8,128
438
\60,008

Income Tax Expense

The simplified method is applied for tax effect accounting to calculate income tax expense forthe 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)(Millions of Yen)

Fundamental profit

Ａ

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)
Ｂ
Fundamental profit plus net capital gains
Ａ＋Ｂ(losses)
Other one-time gains
Reinsurance revenue
Reversal of contingency reserve
Reversal of specific allowance for possible loan
lossesOthersOther one-time losses
Reinsurance premiums
Provision for contingency reserve
Provision for specific allowance for possible loan
lossesProvision for allowance for specified overseas loans
Write-offs of loans
OthersNet other one-time gains (losses)
Ｃ
Ordinary profit
Ａ＋Ｂ＋Ｃ

27

Six months ended
September 30, 2020

Six months ended
September 30, 2021

21,59022,64911,466
11,466
8,013
485
1,643
125
5,134
623
3,453

6,959
6,820
139
2,989
916
4
2,068
3,969

25,043

26,619

34
-

42
-

34

42

300
300

319
319

-

-

0
(266)
24,7770(276)
26,342Asahi Mutual Life Insurance Company

７．Disclosed Claims Based on Categories of Obligors(Millions of Yen, ％)As of March 31, 2021

As of September 30, 2021

Claims against bankrupt andquasi-bankrupt obligors

437

467

Claims with collection risk

139

90

Claims for special attention

118

78

Subtotal694

635（Percentage of total）(0.12)(0.11)

Claims against normal obligors

569,541

563,556

Total

570,236

564,192

Notes:
1.Claims against bankrupt and quasi-bankrupt obligors are claims to obligors who are subject tobankruptcy, corporate reorganization or rehabilitation or other similar proceedings and other obligors
in serious financial difficulities.
2.Claims with collection risk are claims to obligors (other than bankrupt and quasi-bankrupt obligors) withdeteriorated financial condition and results of operations from which it is unlikely that the principal andinterest on the claims will be recovered.
3.Claims for special attention are claims on which principal and/or interest are past due for three months ormore and claims with a concessionary interest rate, as well as claims with renegotiated conditions infavor of the borrower, including renegotiated schedule and/or waivers, in each case, other than the claims
described in note 1. or 2. above.
4.Claims against normal obligors are all other claims.

28

Asahi Mutual Life Insurance Company

８．Risk-monitored Loans(Millions of Yen, ％)As of March 31, 2021

As of September 30, 2021

00Delinquent loans

563

542

Delinquent loans three or more months past due

9455

Restructured loans

20

20

Total

677

619

（Percentage of total loans）(0.22)(0.21)

Loans to bankrupt borrowers

Notes:
1.For credit to legally bankrupt borrowers and substantially bankrupt borrowers, the amounts remaining
after the deductions of amount expected to be collected through the disposal of collateral or the executionof guarantees are written-off directly from the book value as the estimated uncollectible amounts.
The amounts written-off related to loans to bankrupt borrowers were \3 million as of September 30, 2021 and\3 million as of March 31, 2021. The amounts written-off related to delinquent loans were \22 million as of
September 30, 2021 and \25 million as of March 31, 2021.
2.Loans to bankrupt borrowers represent non-accrual loans to borrowers which are subject to bankruptcy,
corporate reorganization or rehabilitation or other similar, including but not limited to foreign, proceedings.
Accruing interest on these loans is not recorded as income after determining that principal of or interest on
these loans is unlikely to be collected due to the significant delay in repayment of principal or interest
repayments or for other reasons.
3.Delinquent loans are loans whose accruing interest is not recorded as income and exclude loans to bankrupt
borrowers and loans for which interest payments have been suspended and rescheduled to assist and support
the borrowers in the restructuring of their business.

4.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 loans classified as loans to bankrupt borrowers or delinquent loans.
5.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 orother terms, have been negotiated for the purpose of assisting and supporting the borrowers in the
restructuring of their businesses. This category excludes loans classified as loans to bankrupt borrowers,
delinquent loans and delinquent loans three or more months past due.

29

Asahi Mutual Life Insurance Company

９. Solvency Margin Ratio(Millions of Yen)
As of March 31, 2021 As of September 30, 2021

Total solvency margin（Ａ）

1,063,948

1,088,984

Foundation funds and surplus

350,417366,854

Reserve for price fluctuation

45,68046,910Contingency reserve

62,44862,767

100

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

252,740

264,347

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

28,681

28,319

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

141,363

143,510

Qualifying subordinated debt

167,173

166,773

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

Deduction-(12,400)

15,343

21,725

218,912215,547

General allowance for possible loan losses

OthersTotal amount of risk

( R1 + R8 ) 2 + ( R2 + R3 + R7 ) 2 + R4（Ｂ）

Insurance risk

R1

12,61312,360Third sector insurance risk

R810,446

10,663

Risk of assumed yield

R2

69,446

68,283

Minimum guarantee risk

R7

1,040

1,037

Investment risk

R3

142,459

140,312

Operational risk

R4

4,720

4,653

972.0%

1,010.4%

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

Notes:
1. The figures above are calculated based on Articles 86 and 87 of the Ordinance for Enforcement of the Insurance BusinessAct and the Public Notice No. 50 of the Ministry of Finance of 1996.
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.

30

Asahi Mutual Life Insurance Company

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

As of March 31, 2021

As of September 30, 2021

AmountAmountIndividual variable insurance

28,07828,409Individual variable annuities--

Group annuity products--

28,07828,409Total（2）Sum Insured of Policies in Force

As of March 31, 2021

As of September 30, 2021

AmountAmountNumber of policies(Thousands)(Millions of Yen)

Number of policies(Thousands)(Millions of Yen)

Individual variable insurance(fixed term)

-

-

-

-

Individual variable insurance(whole life)

12

89,766

12

88,468Total

12

89,766

12

88,468

As of March 31, 2021

As of September 30, 2021

AmountAmountNumber of policies(Thousands)(Millions of Yen)

Number of policies(Thousands)(Millions of Yen)

Individual variable annuities

-

-

-

-

Total

-

-

-

-

31

Asahi Mutual Life Insurance Company

11. Status of the Company, Subsidiaries and Affiliates(1) Selected Financial Data
(Millions of Yen)

Six months ended
September 30, 2020

Six months ended
September 30, 2021

Ordinary income

300,033

299,953

Ordinary profit

24,60024,643

Net surplus attributable to the Parent Company

17,114

17,581

Comprehensive income

88,626

26,460(Millions of Yen)

As of March 31, 2021
Total assets
Solvency margin ratio

32

As of September 30, 2021

5,540,449

5,523,306

992.4%

1,029.4%

Asahi Mutual Life Insurance Company

（2）Unaudited Consolidated Balance Sheets(Millions of Yen)

Assets:Cash and deposits
Call loans
Monetary claims bought
Securities
Loans
Tangible fixed assets
Intangible fixed assets
Agency accounts receivable
Reinsurance receivables
Other assets
Net defined benefit assets
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
Net defined benefit liabilities
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
Consolidated surplus
Total foundation funds and others
Net unrealized gains (losses) on available-for-salesecurities, net of tax
Land revaluation differences
Accumulated remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

33

As of March 31, 2021

As of September 30, 2021

44,149113,000
25,094
4,598,851
303,451
378,046
29,941
14
987
46,670
494
152
1
(406)
5,540,449

40,347116,000
23,802
4,584,484
300,247
375,147
30,75014
327
51,974
440
209
0
(441)
5,523,306

4,477,995
28,572
4,419,372
30,050680
127,773295,766
32,91445,68022,354
16,2681
5,019,435

4,450,551
28,576
4,391,390
30,584
330
127,773
281,416
32,422
46,91026,53816,16804,982,110

91,000166,000
281
97,154354,436

91,000166,000
281
108,751
366,033

213,201

221,891(45,354)(1,349)166,49779
521,014
5,540,449(45,612)(1,184)
175,09468
541,195
5,523,306

Asahi Mutual Life Insurance Company

（3）Unaudited Consolidated Statements of Income and Statements of Comprehensive Income（Unaudited Consolidated Statements of Income）
Ordinary income:Premium and other income
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:
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
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
Net surplus attributable to non-controlling interests
Net surplus attributable to the Parent Company

34

Six months ended
September 30, 2020
300,033
193,21274,01756,85011,4672,190
32,803
275,433
184,573
53,977
57,901
32,921
37,222
1,579
1
118,193
2,210
485
1,643
125
5,134
55,621
17,042
24,60033
2,270
22,363
5,232
5,232
17,131
16
17,114(Millions of Yen)
Six months ended
September 30, 2021
299,953
192,500
71,587
59,7936,820
1,365
35,864
275,309
183,528
53,25755,66633,51638,7001,261
5
4
114,431
2,586
916
4
2,068
60,58916,754
24,643340
1,916
23,0675,461
5,461
17,60624
17,581

Asahi Mutual Life Insurance Company

（Unaudited Consolidated Statements of Comprehensive Income）
Six months ended
September 30, 2020

(Millions of Yen)
Six months ended
September 30, 2021

Net surplus

17,131

17,606

Other comprehensive income:

71,4958,854

71,439

8,689

55

164

88,626

26,46088,60926,43516

24

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

35

Asahi Mutual Life Insurance Company

（4）Unaudited Consolidated Statements of Cash FlowsSix months ended
September 30, 2020

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
Purchases of monetary claims bought
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
Redemption of debt borrowing
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(Millions of Yen)
Six months ended
September 30, 2021

22,363
2,727
6,061
118
(1,048)(23,660)
1
(57)
(624)
1,180
(56,850)(11,376)
5,134
2,210
623
(10)
(6,805)(60,010)62,669(2,431)(1,752)(5,876)(7,402)

23,067
2,804
5,921
273
4
(27,982)
1
34
(304)
1,230
(59,793)(7,313)
2,068
2,586
(139)
(302)
4,056
(53,786)
63,294(2,766)(1,620)(6,738)(1,618)(93)937(249,815)
244,961(16,377)
77,392(8,134)(438)(485)
47,94740,545(2,911)29(3,681)
41,383

1,293(156,314)
186,079(28,249)
31,453(22,187)317
12,391
10,773(4,029)1,679(4,724)
5,317(10,000)(4,081)(38)(477)(14,598)
19,383
117,227
136,610(4,089)(36)(376)(4,501)(802)
157,149
156,347

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.

36

Asahi Mutual Life Insurance Company

（5）Unaudited Consolidated Statements of Changes in Net Assets
Six months ended September 30, 2020

(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

81,429338,711(1,794)(1,794)(4,081)(4,081)

17,114

17,11449

49

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

-

-

-

11,287

11,28791,000166,000

281

92,717349,999

Accumulated
remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

Total
net assets(1,814)50,627

81

389,420

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

Beginning balance

97,625Landrevaluationdifferences(45,183)

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(1,794)(4,081)
17,11449
71,439(49)

55

71,445(22)

71,423

Net changes in the interim period

71,439(49)

55

71,445(22)

82,711Ending balance

169,065(45,233)(1,759)122,07359

472,131

37

Asahi Mutual Life Insurance Company

Six months ended September 30, 2021

(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

97,154354,436(2,153)(2,153)(4,089)(4,089)17,581

17,581

257

257

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

-

-

-

11,596

11,59691,000166,000

281

108,751

366,033

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

Beginning balance

213,201

Total

Land
revaluationdifferences

Accumulated
accumulated
remeasurements
otherof definedcomprehensive
benefit plans

Noncontrollinginterests

Total
net assets

79

521,014

income(45,354)(1,349)166,497

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(2,153)(4,089)17,581
257
8,689

(257)

164

8,596

(11)

8,585

8,689

(257)

164

8,596

(11)

20,181

221,891(45,612)(1,184)

175,09468

541,195

38

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 theaccounts maintained by Asahi Mutual Life Insurance Company (the “Company”) and its
consolidated subsidiaries in accordance with the provisions set forth in the Insurance BusinessAct 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 incountries 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 the disclosure 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 domesticallyin 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, 2021 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 materially affect any reasonable determination as to the financial
position and results of operation of the Company’s group, these companies are excluded
from the consolidation.

39

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 a whole, 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 areequivalent to securities 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 Treatmentof Accounting and Auditing Concerning Policy-reserve-matching Bonds in Insurance
Industry” (Industry Audit Committee Report No. 21 issued by the Japanese Instituteof Certified Public Accountants (“JICPA”)), are stated at amortized cost (straight-line
method) determined by the moving average method.
iv) Investments in unconsolidated subsidiaries and affiliates not accounted for under theequity method are stated at cost.
v)

Available-for-sale securities except for the following are stated at fair market value
based on the market 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 atamortized cost (straight-line method) determined by the moving average method.
Stocks and others without a market price are stated at cost determined by the moving
average method. Net unrealized gains or losses on these available-for-sale securities,
net of tax, are recorded as a separate component of net assets.

40

Asahi Mutual Life Insurance Company

(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) of individual life insurance and individual annuities as policyreserve-matching bonds in accordance with “Temporary Treatment of Accounting and
Auditing Concerning Policy-reserve-matching Bonds in Insurance Industry” (Industry
Audit Committee Report No. 21 issued by the JICPA).
Since the interim period starting from April 1, 2021, the Company changed its liability
cash flow, which is the premise of assessing the duration to outstanding insurance
liabilities, from a “Term of future 30 years” to a “Whole period” for the sub-group including
Individual life Insurance and Individual Annuities (excluding Whole Life Insurance withvariable interest rate accumulation, Accumulation Insurance with variable interest rates
and New Single Premium Individual Annuity effective on and after April 2, 2012). Thischange did not have any effects on the consolidated balance sheet and consolidated
statement of income as of and for the interim period ended September 30, 2021.
(3) Revaluation of land
The Company revalued the land for business purposes based on the Act on Revaluation ofLand (Act No. 34 promulgated on March 31, 1998). The difference between fair value andbook value resulting from the revaluation, net of related taxes, is recorded as land
revaluation differences as a separate component of net assets and the related tax isrecorded 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 with certain 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

41

Asahi Mutual Life Insurance Company

(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 standardsof self-assessment 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 whoare substantially bankrupt (hereinafter “substantially bankrupt borrowers”), theCompany provides the remaining amount of credits after the direct write-off described
below and the deductions of the amount expected to be collected through the disposalof collateral or the execution of guarantees.

ii)

For credit to borrowers who are not currently bankrupt but have a high risk ofbankruptcy (hereinafter “not currently bankrupt borrowers”), the Company provides
the amounts deemed as necessary considering the borrowers’ ability to pay, within theamounts after deductions of the amount expected to be collected through the disposalof collateral or the execution of guarantees.

iii) For credit to borrowers other than the above, the Company provides the amounts
calculated by multiplying 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 self-assessment on credit quality. The results of the assessment are reviewed
by the audit department, which is 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 deemednecessary in accordance mainly with the Company’s standards of self-assessment andwrite-offs and reserves on credit quality.
For credit to legally bankrupt borrowers and substantially bankrupt borrowers, theamounts remaining after deductions of collateral value or the amounts collectible throughthe execution of guarantees are written-off directly from the book value as the estimateduncollectible amounts. The amount written-off was ¥25 million as of September 30, 2021.
(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 the balance sheet date.

42

Asahi Mutual Life Insurance Company

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 ofseven 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(“Tokurei-shori”) 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 toforeign exchange rate fluctuation exposures on certain bonds, investment trusts and others
denominated in foreign currencies.
The Company also applies designated hedge accounting (“Furiate-shori”) for currency
swaps used to hedge foreign exchange rate fluctuation exposures on the foreign currencydenominated bonds issued by the Company.
The Company also applies designated hedge accounting (“Furiate-shori”) for the foreign
currency-denominated transactions other than the above.
The effectiveness of a hedge is mostly assessed by a ratio analysis, comparing thefluctuations in the fair value 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 tax-exclusion method. The consumption taxes on certain assets, which are notdeductible from consumption taxes withheld and that are stipulated to be deferred under43

Asahi Mutual Life Insurance Company

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) 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 therelevant amounts received.
Of insurance premiums, the portion corresponding to the period that has yet to pass as ofthe end of the interim period is set aside as policy reserves in accordance with Article 116of the Insurance Business Act and Article 69, Paragraph 1, Item 2 of the Enforcement
Regulation of the Insurance Business Act.
(13) Claims and other payments (excluding reinsurance premiums)
Claims and other payments (excluding reinsurance premiums) are recorded for insurance
policies for which amounts calculated under policy conditions have been paid in theoccurrence of insured events under the policy conditions by the relevant amounts paid.
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 theCompany has payment obligation or the occurrence of insured events has not been reported
but the Company finds that insured events have already occurred, as of the end of theinterim period.
(14) Policy reserves
Policy reserves are calculated as stated in accordance with the methods stated in thestatement of calculation procedures for insurance premiums and policy reserves (Article 4,
Paragraph 2, Item 4 of the Insurance Business Act) pursuant to Article 116, Paragraph 1of 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 prescribedby the Commissioner 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

44

Asahi Mutual Life Insurance Company

method is applied.
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 inorder to ensure the performance of future obligations under insurance policies.
(15) 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 straightline method over the estimated useful lives.
2.

Accounting Changes

The Company has applied “Accounting Standard for Fair Value Measurement” (ASBJ
Statement No. 30, issued on July 4, 2019) and others from the interim period ended September
30, 2021. In accordance with the transitional treatment set forth in Paragraph 19 of "AccountingStandard for Fair Value Measurement" and Paragraph 44-2 of "Accounting Standard for
Financial Instruments" (ASBJ Statement No.10, July 4, 2019), the Company has applied new
accounting policies prospectively. As a result, available-for-sale securities, of which domestic
listed stocks, domestic stock exchange-traded funds, domestic listed real estate investment
trusts, foreign stock exchange-traded funds for which hedge accounting is not applied, foreign
bond exchange-traded funds for which hedge accounting is not applied and foreign currencydenominated bonds for which hedge accounting is not applied, are changed to be stated at fairvalue based on the market prices at the balance sheet date from fair value based on the averageof the market prices during the final month of the interim period.
In determining to recognize impairment losses on available-for-sale securities, the Company
has used fair value based on the average of market prices during the final month of interim
period as before.

45

Asahi Mutual Life Insurance Company

3.

Financial Instruments

The balance sheet amounts, fair values and the differences between those of major financial
assets and liabilities as of September 30, 2021 were as follows:
Millions of Yen
As of September 30, 2021

Monetary claims bought
Trading securities
Held-to-maturity debt securities
Policy-reserve-matching bonds
Available-for-sale securities
Securities
Trading securities
Held-to-maturity debt securities
Policy-reserve-matching bonds
Available-for-sale securities
Loans
Policy loans
Industrial and consumer loans
Total assets
Bonds payable
Loans payable
Total liabilities
Derivative financial instruments
Hedge accounting not applied
Hedge accounting applied

Balance Sheet
Amount\23,802–
22,847–955
4,562,379
26,643285,927
2,033,907
2,215,900
300,247
33,640266,6074,886,428
127,773
41,000168,773(6,517)(695)(5,821)

Fair Value\

25,954–24,999–955
4,808,283
26,643
321,5312,244,207
2,215,900
307,859
33,640274,219
5,142,097
130,477
42,177
172,654(6,517)(695)(5,821)

Difference\ 2,152–
2,152––
245,904–
35,604
210,300
–
7,611
–
7,611
255,668
2,704
1,177
3,881
–
–
–

* 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 not included in the table above. The amount of the unlisted stocks and others,
including investments in subsidiaries and affiliates, reported in the interim consolidatedbalance sheet was ¥22,105 million as of September 30, 2021.

46

Asahi Mutual Life Insurance Company

4.

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 accordancewith the observability 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 thanLevel 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 in which each of the inputs belongs.
(1) Financial assets and liabilities recorded at fair values on the interim consolidated balance
sheetMillions of Yen
As of September 30, 2021
Fair Value
Level 1
Monetary claims bought
Available-for-sale securities
Securities
Trading securities
National government bonds andlocal government bonds
Corporate bonds
Domestic stocks
Foreign stocks
Foreign bonds
Available-for-sale securities
National government bonds andlocal government bonds
Corporate bonds
Domestic stocks
Foreign stocks
Foreign bonds
Total assets
Derivative financial instruments
Currency-relatedInterest-related\––
608,085
24,886\

Level 2

Level 3––
1,184,653
1,757

\

955
955
26,390
–

Total
\

955
955
1,819,128
26,643

5,850
–
8,616
7,777
2,641
583,198

–
711
–
–
1,046
1,182,895

–
–
–
–
–
26,390

5,850
711
8,616
7,777
3,687
1,792,484

42,835–
409,4686
130,887
608,085
–
–
–

3,077
462,845––716,972
1,184,653(6,517)(6,517)–––––
26,39027,3450–045,913462,845
409,4686874,251
1,820,083(6,517)(6,517)0* Assets and liabilities generated by derivative financial instruments are offset and presented net. Net
liabilities in total are presented in parentheses.

47

Asahi Mutual Life Insurance Company

(2) Financial assets and liabilities not recorded at fair values on the interim consolidatedbalance sheet
Millions of Yen
As of September 30, 2021
Fair Value
Level 1
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 3

Level 2
–
–

\

–
–

Total

1,819,080
37,380619,206
156,699\ 24,999
24,999127,452
127,452

37,380––1,781,700–
99,71756,981
462,507––
127,452–

37,38099,717
184,434
2,244,207

1,781,700––––
1,819,080–––

52,659409,847–––
619,206
130,477–
130,477––
307,859
33,640274,219
460,311

1,834,359
409,847
307,859
33,640274,219
2,898,598
130,477
42,177
172,654\–
42,17742,177

24,99924,9992,565,739
321,531(3) Description of the evaluation methods and inputs used to measure fair valuei)Securities including deposits and monetary claims bought which are treated as
securities based on “Accounting Standard 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 andgovernment bonds. In the case the market is inactive even if the quoted market priceis 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.
Fair values of investment trusts are measured at the disclosed net asset value andothers. Investment trusts are not categorized into any level, since “2021 Revised
Implementation Guidance” in “Implementation Guidance on Accounting Standard for48

Asahi Mutual Life Insurance Company

Fair Value Measurement” (ASBJ Guidance No. 31, revised on June 17, 2021) is notapplied to them.
ii)

Loans
As credit exposure for policy loans without specific repayment periods is limited to theamount of the cash surrender value, the Company considers book value as fair value
with assumption that fair value 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 theoreticalprices calculated by discounting the future cash flows to the present value by type ofloan, 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 not currently
bankrupt borrowers is stated at the amounts by deducting estimated losses from thebook value before direct write-offs.

iii) Bonds payableAs for bonds payable issued by the Company, the fair value of the bonds is stated atbonds prices added by the fair value of currency swaps, as the Company applies
designated hedge accounting (“Furiate-shori”) for currency swaps. Bonds payable arecategorized as level 2, since the Company adopts market prices as bond prices andprices obtained from external information venders as the fair value of currency swaps,
and inputs are primarily interest rates and foreign exchange rates which areobservable.
iv) Loans payableAs for loans payable, the fair value of loans is stated at theoretical prices calculatedby discounting the future cash flows to the present value, using market interest rates
with some adjustments based on the Company’s credit risk. Loans payable arecategorized as level 3.
v)

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

49

Asahi Mutual Life Insurance Company

(4) Quantitative information about financial assets and liabilities measured and stated in theinterim 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

Six months ended
September 30, 2021

Beginning balance
Gains (losses) and othercomprehensive income for theinterim period:
Gains(losses) recorded forthe interim period *1
Other comprehensive income
recorded for the interim
period *2
Net amount of purchase, sale,issue, and settlement
Transfer to fair values of Level
3
Transfer from fair values ofLevel 3Ending balance
Net unrealized gains(losses) on
financial assets and liabilities heldat the balance sheet date among
the amount recorded to gains(losses) for the interim period *1

Monetary claimsboughtSecurities

Available-forsale securities

Available-forsale securities

OthersForeign bonds

(i)

（ii）

Derivative
financial
instruments

Total(i) + (ii)Interest-related\ 969\26,853\27,822

\ –

(14)

(463)

(477)

(229)

(27)

(1,121)(1,148)

(229)

13

657

671

–

–

–

–

229

–

–

–

–

–
955

–
26,390–27,345–0(27)(1,121)(1,148)(229)*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, netof tax in other comprehensive income in the interim consolidated statement of comprehensive
income.

50

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 and accounting department and risk management department. In
accordance with these policies and procedures, risk management department measure
the fair value. The validity of the evaluation methods and inputs used to measure fairvalue and the appropriateness of categorization of fair value are verified in the
independent division in risk management department.
In fair value measurement, valuation models in which the nature, characteristics andrisks of individual assets are most appropriately reflected are used. In addition, whenquoted prices obtained from third parties are used, the validity of the prices is verified
by appropriate methods such as confirmation of evaluation method and used inputs
and comparison with the fair values of similar financial instruments.
5.

Investments and Rental Properties

The fair value of investment and rental properties is omitted because there have been no
significant changes compared with the corresponding fair value at the end of the previous fiscal
year.
6.

Loans

The total amount of loans to bankrupt borrowers, delinquent loans, delinquent loans three ormore months past due and restructured loans, which were included in loans was ¥619 million
as of September 30, 2021.
i)

Loans to bankrupt borrowers were ¥0 million as of September 30, 2021.

ii)

Delinquent loans were ¥542 million as of September 30, 2021.

iii) Delinquent loans three or more months past due were ¥55 million as of September 30, 2021.
iv) Restructured loans were ¥20 million as of September 30, 2021.
Loans to bankrupt borrowers represent loans, excluding the balances already written-off, whichmeet the conditions prescribed in Article 96, Paragraph 1, Items 3 and 4 of the Enforcement
Regulations of the Corporate Tax Act. Moreover, accruing interest on these loans is not recorded
as income after determining that principal of or interest on these loans is unlikely to be collected
due to the significant delay in repayment of principal or interest payments or for other reasons.
Accruing interest on delinquent loans is not recorded as income due to the same reasons as
described above, and delinquent loans exclude loans to bankrupt borrowers and loans for whichinterest payments have been suspended and rescheduled to assist and support the borrowers in
the restructuring of their businesses.

51

Asahi Mutual Life Insurance Company

Delinquent loans three or more months past due are loans for which interest payments or
repayments of principal are delinquent for three months or more from the due dates under theterms of the related loan agreements, excluding those loans classified as loans to bankrupt
borrowers and delinquent loans.
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 andsupporting the borrowers in the restructuring of their businesses. This category excludes loansclassified as loans to bankrupt borrowers, delinquent loans and delinquent loans three or moremonths past due.
The direct write-offs related to loans decreased the amount of loans to bankrupt borrowers
described above by ¥3 million as of September 30, 2021.
In addition, the direct write-offs related to loans decreased the amount of delinquent loans
described above by ¥22million as of September 30, 2021.
7.

Separate Accounts

Total assets in separate accounts provided for in Article 118 of the Insurance Business Act were¥28,409 million as of September 30, 2021. The amounts of separate account liabilities were thesame 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,
2021 was as follows:
Millions of Yen
Six months ended
September 30, 2021
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.

\30,050
2,153
1,620
1
\30,584

Pledged Assets

Assets pledged as collateral were securities in the amount of ¥13,625 million as of September
30, 2021.

52

Asahi Mutual Life Insurance Company

10. Securities Lent under Lending Agreements
The amount of securities lent under lending agreements was ¥262,685 million as of September
30, 2021.
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¥78,789 million as of September 30, 2021. No assets were pledged as collateral as of September
30, 2021.
12. Commitment LineAs of September 30, 2021, there were unused commitment line agreements under which theCompany is the lender of ¥10,768 million.
13. Subordinated Bonds Payable
As of September 30, 2021, bonds payable are subordinated bonds payable, for which therepayments are subordinated to other obligations.
14. Subordinated Loans Payable
As of September 30, 2021, other liabilities included subordinated loans payable of ¥41,000
million, for which the repayments are subordinated to other obligations.
15. Contributions to Policyholders Protection Corporation
The estimated future contributions to the Life Insurance Policyholders Protection Corporationof Japan under Article 259 of the Insurance Business Act were ¥8,260 million as of September
30, 2021. These contributions are charged as operating expenses in the reporting period inwhich they are paid.

53

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:
Millions of Yen
Six months ended
September 30, 2021
Domestic bonds
Domestic stocks and other securities
Foreign securities\2,7394,076
4The major components of losses on sales of securities were as follows:
Millions of Yen
Six months ended
September 30, 2021
Domestic bonds
Domestic stocks and other securities
Foreign securities

\ 17
346
552

The major components of losses on valuation of securities were as follows:
Millions of Yen
Six months ended
September 30, 2021
Domestic stocks and other securities

2.

\4

Income Tax Expense

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

54

Asahi Mutual Life Insurance Company

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

As of March 31, 2021 As of September 30, 2021
Total solvency margin（Ａ）

1,054,961

1,090,959

Foundation funds and surplus

343,302358,136

Reserve for price fluctuation

45,68046,910Contingency reserve

62,44862,767

-

-

101

178

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

252,742

264,349

Net unrealized gains on land × 85%

28,681

28,319(1,875)(1,710)

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

141,363

143,510

Qualifying subordinated debt

167,173

166,773

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

Deduction--

15,343

21,725

212,597

211,958

Catastrophe loss reserve
General allowance for possible loan losses(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

12,61312,360Ordinary insurance risk

R5

-

-

Disaster insurance risk

R6

-

-

Third sector insurance risk

R810,446

10,663

Small amount short-term insurance provider insurance risk

R9

-

-

Risk of assumed yield

R2

69,446

68,283

Minimum guarantee risk

R7

1,040

1,037

Investment risk

R3

136,232

136,772

Operational risk

R4

4,595

4,582

992.4%

1,029.4%

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

Notes:
1. The figures above are calculated based on Articles 86-2 and 88 of the Ordinance for Enforcement 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 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.

(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.

55

Asahi Mutual Life Insurance Company