November 24, 2022

Financial Results for the Six Months Ended September 30, 2022
Asahi Mutual Life Insurance Company (the “Company”; President: Hiroki Kimura) announces
financial results for the six months ended September 30, 2022.

［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)

･････

Ｐ29

７．Disclosed Claims Based on Insurance Business Act

･････

Ｐ30

８．Solvency Margin Ratio

･････

Ｐ31

９．Status of Separate Account

･････

Ｐ32

10．Status of the Company, Subsidiaries and Affiliates

･････

Ｐ33

Asahi Mutual Life Insurance Company

１．Business Highlights(1) Sum Insured of Policies in Force and New Policies(i) Policies in Force
As of March 31, 2022
Number of policies

As of September 30, 2022

Amount (100 millions of Yen)

(Thousands)

Number of policies

Amount (100 millions of Yen)

(Thousands)

Changes(%, Pre-FYE)

Changes(%, Pre-FYE)

Individual insurance

7,372

123,289

7,351

99.7

118,892

96.4

Individual annuities

479

19,388466

97.3

18,83997.2

Group insurance-

14,034--

14,127100.7Group annuities

-

131

-

-

127

96.9

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, 2021
Number of policies

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

Net increase by
conversion

Individual insurance

393

886

1,578

(691)

Individual annuities

-

(24)

-

(24)

Group insurance

-

93

93

-

Group annuities

-

-

-

-

Six months ended September 30, 2022
Number of policies(Thousands)

Amount (100 millions of Yen)

Changes(%, YoY)

Changes(%, YoY)

New
policies

Net increase by
conversion

Individual insurance

343

87.2

1,005

113.4

1,586

(581)

Individual annuities

-

-

(21)

-

-

(21)

Group insurance

-

-

181

194.6

181

-

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, 2022

As of September 30, 2022
Changes(%, Pre-FYE)

Individual insurance

3,830

3,782

98.8

Individual annuities

1,242

1,204

97.0

Total

5,072

4,987

98.3

2,240

2,236

99.8

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

Six months ended
September 30, 2021

Six months ended
September 30, 2022

Individual insurance

132

103

78.3

Individual annuities

(0)

(0)

-

132

103

78.3

112

84

74.7

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, theamount is calculated by dividing the premium by the coverage period).
2. Figures for third-sector products represent portion of annualized premiums corresponding to the medical benefits (hospitalization
benefits, surgery benefits, etc.), living benefits (specific illness benefits, nursing care benefits, etc.) and waiver benefits (excluding
disability benefits, but including specific illness benefits and nursing care benefits).

2

Asahi Mutual Life Insurance Company

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

Cash, deposits, call loans
Monetary claims bought

As of March 31, 2022

As of September 30, 2022

AmountAmountPercentage

145,376

2.7

Percentage

100,750

1.9

22,5340.4

21,281

0.4

4,539,235

82.9

4,419,166

83.4

Domestic bonds

2,621,140

47.9

2,686,496

50.7

Domestic stocks

464,6708.5

444,815

8.4

Foreign securities

1,383,693

25.3

1,221,922

23.1

Foreign bonds

1,027,053

18.8

823,168

15.5

356,640

6.5

398,753

7.5

69,731

1.3

65,932

1.2

Securities

Foreign stocks and other foreign securities
Other securities
Loans

311,416

5.7

292,608

5.5

Policy loans

32,1990.6

31,113

0.6

Industrial and consumer loans

279,2175.1

261,494

4.9

363,5136.6

361,194

6.8

Real estate
Deferred tax assets
Others--21,1090.4

94,3971.7

80,864

1.5

(550)

(0.0)

(712)

(0.0)

5,475,924

100.0

5,296,263

100.0

1,489,515

27.2

1,363,916

25.8

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, 2021

Six months ended
September 30, 2022

AmountAmountCash, deposits, call loans(71)(44,625)

Monetary claims bought(1,291)(1,252)

Securities(11,304)(120,068)

Domestic bonds(35,052)

65,356

Domestic stocks

10,093(19,855)

Foreign securities

20,199(161,771)

Foreign bonds(11,583)(203,884)

Foreign stocks and other foreign securities

31,782

42,113

Other securities(6,545)(3,798)(3,203)(18,808)

Policy loans(1,542)(1,085)

Industrial and consumer loans(1,661)(17,722)

Loans

Real estate
Deferred tax assets
OthersAllowance for possible loan losses
Total
Foreign currency-denominated assets(2,430)(2,319)-21,1093,978(13,532)

(35)

(162)

(14,358)(179,661)

26,837(125,599)

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, 2021
60,008Interest, dividends and other income
Interest on deposits

Six months ended
September 30, 2022
61,8960

0Interest and dividends on securities

49,36350,996

Interest on loans

2,078

2,417

Rent revenue from real estate

8,128

8,046

Other interest and dividends

438

436

6,820

10,764

Gains on sales of domestic bonds

2,739

3,742

Gains on sales of domestic stocks and other securities

4,076

800

Gains on sales of foreign securities

4

6,221

Others--Gains on redemption of securities

64

98

Gains on derivative financial instruments, net

-

-

139

4,437

Gains on sales of securities

Foreign exchange gains, net
Reversal of allowance for possible loan losses

-

-

3,419

3,515

70,45280,711

Six months ended
September 30, 2021
2,586

Six months ended
September 30, 2022
1,834

916

16,913Losses on sales of domestic bonds

17

2,628

Losses on sales of domestic stocks and other securities

346

577

Losses on sales of foreign securities

552

13,707--4

2

Losses on valuation of domestic bonds--

Losses on valuation of domestic stocks and other securities

4-

Losses on valuation of foreign securities-

2

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

Interest expenses
Losses on sales of securities

Others
Losses on valuation of securities

Losses on redemption of securities

15

466

2,068

8,156

Foreign exchange losses, net--

Provision for allowance for possible loan losses

34

145

Losses on derivative financial instruments, net

Write-offs of loans

00Depreciation of rental real estate and other assets

2,804

2,779

Other investment expenses

6,000

5,578

14,43135,876Total

4Asahi Mutual Life Insurance Company

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

As of March 31, 2022
AmountTrading securities

As of September 30, 2022

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, 2022
Book value Fair value

As of September 30, 2022

Gains/losses
Gains

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

Book value Fair value

301,647

333,640

31,99232,001

2,028,714

2,159,139

130,424

169,489(8)

Gains
320,619

26,686

26,718(31)(39,065) 2,048,634

2,057,362

8,728

139,444(130,715)

-

-

-

-

2,135,750

223,432

300,935

467,355

(893)

6,409

(7,302)523,729468,248

Losses

293,933

Available-for-sale securities 1,912,317

Domestic bonds

Gains/losses

Losses

-

-

-

-

-

(77,503) 1,850,595-

1,975,629

125,034

273,914(148,880)

519,283(4,446)

11,539(15,985)

Domestic stocks

166,694

413,036

246,341

259,795(13,453)

170,249

376,912

206,663

221,871(15,208)

Foreign securities

1,208,339

1,184,814(23,525)

31,335(54,860) 1,086,830

1,013,532(73,298)

39,148(112,446)

Foreign bonds
Foreign stocks andother foreign securities
Other securities

904,300

872,053(32,247)

11,095(43,342)

747,270668,168(79,102)6,112(85,214)304,039

312,761

8,721

20,239(11,518)

339,559

345,363

5,803

33,035(27,232)

68,202

69,587

1,384

3,271

(1,886)

68,97364,974(3,999)1,239(5,238)

Monetary claims bought
Negotiable certificates ofdeposit
Others

833

957

123

123

-

811

926

114

114

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Total

4,242,680

4,628,529

385,849

502,426(116,576) 4,193,162

4,353,611

160,449

440,077(279,628)

Domestic bonds

2,622,033

2,756,333

134,299

180,668(46,368) 2,690,942

2,699,132

8,190

154,895(146,705)

Domestic stocks

166,694

413,036

246,341

259,795(13,453)

170,249

376,912

206,663

221,871(15,208)

Foreign securities

1,363,339

1,365,318

1,978

56,839(54,860) 1,241,830

1,189,241(52,588)

59,858(112,446)

Foreign bonds
Foreign stocks andother foreign securities
Other securities

1,059,300

1,052,556(6,743)36,599(43,342)902,270

843,878(58,392)

26,822(85,214)304,039

312,761

8,721

20,239(11,518)

339,559

345,363

5,803

33,035(27,232)

68,202

69,587

1,384

3,271

(1,886)

68,97364,974(3,999)1,239(5,238)

Monetary claims bought
Negotiable certificates ofdeposit
Others

22,41024,255

1,844

1,852

(8)

21,16623,350

2,183

2,211

(27)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

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, 2022 As of September 30, 2022

Stocks of subsidiaries

37,37754,647Available-for-sale securities

54,87458,384

Domestic stocks

14,257

13,254Foreign stocks

11

11

Others40,605

45,118

Total

92,251

113,031

5

Asahi Mutual Life Insurance Company

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

As of March 31, 2022

As of September 30, 2022

Gains/losses

Book value Fair value

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

Losses301,647

333,640

31,99232,001

2,028,714

2,159,139

130,424

169,489(8)

Gains
320,619

26,686

26,718(31)(39,065) 2,048,634

2,057,362

8,728

139,444(130,715)

37,37737,377--2,194,030

226,838

304,350

467,355

(893)

6,409

(7,302)523,729468,248

Losses

293,933

Available-for-sale securities 1,967,191

Domestic bonds

Gains/losses

Book value Fair value

54,64754,647---(77,512) 1,908,979-

2,043,233

134,254

283,145(148,891)

519,283(4,446)

11,539(15,985)

Domestic stocks

180,951427,293

246,341

259,795(13,453)

183,504

390,167

206,663

221,871(15,208)

Foreign securities

1,248,812

1,228,693(20,118)

34,750(54,869) 1,131,000

1,066,922(64,078)

48,379(112,458)

Foreign bonds
Foreign stocks andother foreign securities
Other securities

904,300

872,053(32,247)

11,095(43,342)

747,270668,168(79,102)6,112(85,214)344,512356,640

12,12823,655(11,527)

383,730

398,753

15,02342,266(27,243)

68,34669,731

1,384

3,271

(1,886)

69,93265,932(3,999)1,239(5,238)

Monetary claims bought
Negotiable certificates ofdeposit
Others

833

957

123

123

-

811

926

114

114

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Total

4,334,931

4,724,187

389,255

505,841(116,585) 4,306,194

4,475,863

169,668

449,308(279,639)

Domestic bonds

2,622,033

2,756,333

134,299

180,668(46,368) 2,690,942

2,699,132

8,190

154,895(146,705)

Domestic stocks

218,328

464,670

246,341

259,795(13,453)

238,152

444,815

206,663

221,871(15,208)

Foreign securities

1,403,812

1,409,197

5,384

60,254(54,869) 1,286,000

1,242,632(43,368)

69,089(112,458)

Foreign bonds
Foreign stocks andother foreign securities
Other securities

1,059,300

1,052,556(6,743)36,599(43,342)902,270

843,878(58,392)

26,822(85,214)344,512356,640

12,12823,655(11,527)

383,730

398,753

15,02342,266(27,243)

68,34669,731

1,384

3,271

(1,886)

69,93265,932(3,999)1,239(5,238)

Monetary claims bought
Negotiable certificates ofdeposit
Others

22,41024,255

1,844

1,852

(8)

21,16623,350

2,183

2,211

(27)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

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, 2022

As of September 30, 2022

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

220,186 285,692
65,505 219,694 285,490
Land
Notes:
1. Fair Value is calculated based on appraisal value for property tax and others.
2. The amount above includes leasehold.

6

65,796

Asahi Mutual Life Insurance Company

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

As of March 31, 2022
Assets:Cash and deposits
Call loans
Monetary claims bought
Securities:
National government bonds
Local government bonds
Corporate bonds
Domestic stocks
Foreign securities
Loans:
Policy loans
Industrial and consumer loans
Tangible fixed assets
Intangible fixed assets
Agency accounts receivable
Reinsurance receivables
Other assets
Prepaid pension cost
Deferred tax assets
Allowance for possible loan losses
Total assets

35,852
111,000
22,5344,565,837
1,669,691
50,540907,641
472,584
1,395,647
311,416
32,199279,217368,550
28,74311393
60,054318(550)
5,504,161

As of September 30, 2022
35,31866,00021,281
4,444,794
1,668,613
54,148971,331452,282
1,232,485
292,608
31,113
261,494
365,585
30,45811229
45,642282
21,109(712)
5,322,608(Millions of Yen)

As of March 31, 2022
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
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, 2022

4,425,731
32,0184,365,068
28,644752
102,424
375,938
4,474
2,194
914
368,354
29,847
48,2103,622
15,711
5,002,238

4,379,859
36,5904,314,092
29,177313
102,424
344,067
1,792
1,705
918
339,651
29,54449,47015,591
4,921,271

91,000166,000
281
117,444347
117,097
53,5006,983
56,614
374,726

51,000206,000
281
85,019366
84,65322,600
7,093
54,960342,301

173,936(46,739)
127,197
501,923
5,504,161

106,083(47,047)
59,036401,337
5,322,608

Asahi Mutual Life Insurance Company

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

Six months ended
September 30, 2021

Six months ended
September 30, 2022

Ordinary income:

297,802

325,510Premium and other income:

192,500

188,630

Insurance premiums

191,636

188,073

71,81880,711

Interest, dividends and other income

60,00861,896

Gains on sales of securities

6,820

10,764

Investment gains on separate accounts

1,365

-

Other ordinary income

33,48456,168

Ordinary expenses:

271,460

307,429

Claims and other payments:

183,528

197,201

Claims53,25753,258Annuities

55,66652,991

Benefits

33,516

48,606

Surrender benefits

38,70040,117

Other payments

1,261

1,237

Provision for policy reserves and other reserves:

5

4,573

Provision for reserve for outstanding claims

4

4,571

Provision for interest on policyholders’ dividend reserves

11Investment expenses:

14,431

36,826

Interest expenses

2,586

1,834

916

16,913

4

2

2,068

8,156

-

949

Operating expenses

56,901

52,214

Other ordinary expenses

16,592

16,613

Ordinary profit

26,342

18,080Extraordinary gains

340

242

Extraordinary losses

1,916

1,908

Surplus before income taxes

24,767

16,415

Income taxes including deferred taxes

5,491

2,987

Total income taxes

5,491

2,987

Net surplus

19,276

13,427

Investment income:Losses on sales of securities
Losses on valuation of securities
Losses on derivative financial instruments
Investment losses on separate accounts

8

Asahi Mutual Life Insurance Company

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

9

Asahi Mutual Life Insurance Company

Six months ended September 30, 2022

(Millions of Yen)
Foundation funds and others
Surplus

Beginning balance

Foundation
funds

Reserve forredemption offoundation
funds

Reserve forrevaluation

91,000166,000

281

Total
surplusTotal
foundation
funds andothers56,614

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

Reserve forfund
redemption

Equalized
reserve fordividends topolicyholders

Unappropriatedsurplus(loss)

347

53,500

6,983

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

19

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

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

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

13,427

13,427

13,427

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

Additions to reserve for fundredemption

9,100

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

Reversal of land revaluationdifferences

(110)
308

308

308

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

40,000-19(30,900)

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

Ending balance

51,000206,000

281

366

22,600

7,093

54,96085,019342,301

Total
valuation andtranslation
adjustments

Total
net assets

127,197

501,923

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

173,936Land
revaluationdifferences(46,739)

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

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

13,427

Redemption of foundation funds(40,000)

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

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

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

Ending balance

106,083(47,047)

59,036401,337

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).
(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,
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

12

Asahi Mutual Life Insurance Company

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 “borrowers with high possibility of bankruptcy”), theCompany provides the amounts deemed as necessary considering the borrowers’
ability to pay, within the amounts after deductions of the amount expected to becollected through the disposal of 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 estimateduncollectible amounts. The amount written-off was ¥6 million as of September 30, 2022.
(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.

13

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.

(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.
(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.

14

Asahi Mutual Life Insurance Company

(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
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

Asahi Mutual Life Insurance Company

(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 “Implementation Guidance on Accounting Standard for Fair Value
Measurement” (ASBJ Guidance No. 31, revised on June 17, 2021) from the reporting period
ended September 30, 2022.
In accordance with the transitional treatment set forth in Paragraph 27-2 of Implementation
Guidance on Accounting Standard for Fair Value Measurement, the Company has applied new
accounting policies prospectively. Following this, some investment trusts are categorized intosome level in the following “Note 5. Matters Concerning Fair Value of Major Financial
Instruments and Breakdown by Input Level”.
3.

Group Tax Sharing System

The Company has applied the group tax sharing system with the Company as the parent
company for group tax sharing purposes from the reporting period ended September 30, 2022.
As a result, the Company has applied the “Practical Solution on the Accounting and Disclosure
Under the Group Tax Sharing System” (ASBJ PITF No.42, issued on August 12, 2021) to theaccounting and disclosure treatment of corporate tax, local corporate tax and tax effectaccounting.

16

Asahi Mutual Life Insurance Company

4.

Financial Instruments

The balance sheet amounts, fair values and the differences between those of major financial
assets and liabilities as of September 30, 2022 were as follows. The following table does notinclude cash and deposits, call loans and payables under securities borrowing transactions
which are mostly settled in a short term and their fair values approximate their book values.

Monetary claims bought
Held-to-maturity debt securities
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

Millions of Yen
As of September 30, 2022
Balance Sheet
Fair Value
Difference
Amount¥21,281¥
23,350¥2,069
20,35522,424
2,069
926
926
4,322,542
4,355,888
33,34525,62725,627
273,578
298,195
24,6172,048,634
2,057,362
8,728
1,974,702
1,974,702
292,608
297,621
5,013
31,113
31,113
261,494
266,508
5,013
4,636,432
4,676,860
40,427
102,424
99,046(3,377)44,00045,295
1,295
146,424
144,342(2,081)(18,846)(18,846)(1,805)(1,805)(17,040)(17,040)-*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 ¥67,915 million as of September 30, 2022.
Investment trusts for which the treatments are applied in accordance with Paragraph 24-3 and24-9 of “Implementation Guidance on Accounting Standard for Fair Value Measurement” areincluded in the table above.
Investments in partnerships and others for which the treatments are applied in accordance with
Paragraph 24-16 of “Implementation Guidance on Accounting Standard for Fair Value
Measurement” are not included in the table above. The amount of the investments inpartnerships and others, reported in the interim non-consolidated balance sheet was ¥54,336
million as of September 30, 2022.
5.

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.

17

Asahi Mutual Life Insurance Company

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 to which each of the inputs belongs.
(1) Financial assets and liabilities recorded at fair values on the interim non-consolidatedbalance sheet

Level 1
Monetary claims bought
Available-for-sale securities
Securities *1
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 bonds
OthersTotal assets
Derivative financial instruments *2
Currency-related
Stock-related*1¥Millions of Yen
As of September 30, 2022
Fair Value
Level 2
Level 3

Total

- ¥
- ¥
585,275 1,201,905
23,538
2,089
6,307
-

926 ¥
926
926
926
64,211 1,851,391
25,627
6,307

7,467
6,923
2,840
561,737
35,761

1,289
799
1,199,815
6,207

64,211
-

1,289
7,467
6,923
3,639
1,825,764
41,968376,91264,49484,568585,275-

477,314539,463
176,830
1,201,905(20,256)(20,256)-

64,211
65,1371,409
1,409

477,314376,912668,168
261,399
1,852,318(18,846)(20,256)
1,409

Investment trusts for which the treatments are applied in accordance with Paragraph 24-3 and 24-9 of“Implementation Guidance on Accounting Standard for Fair Value Measurement” are not included in thetable above.
The amount of the investment trusts for which the treatments are applied in accordance with Paragraph24-3 of the implementation guidance, reported in the interim non-consolidated balance sheet was\143,760 million as of September 30, 2022. The amount of the investment trusts for which the treatments
are applied in accordance with Paragraph 24-9 of the implementation guidance, reported in the interim
non-consolidated balance sheet was \5,178 million as of September 30, 2022.

*2

Assets and liabilities generated by derivative financial instruments are offset and presented net. Net
liabilities in total are presented in parentheses.

18

Asahi Mutual Life Insurance Company

i)Investment trusts for which the treatments are applied in accordance with Paragraph24-3 and 24-9 of “Implementation Guidance on Accounting Standard for Fair Value
Measurement”
a)Reconciliation between the beginning and ending balance, and net unrealized
gains (losses) recognized as gains (losses) for the interim period, of the investment
trusts for which the treatments are applied in accordance with Paragraph 24-3 of“Implementation Guidance on Accounting Standard for Fair Value Measurement”
Millions of Yen
Six months ended
September 30, 2022¥
121,141

Beginning balance
Gains (losses) and net unrealized gains (losses) on
available-for-sale securities, net of tax recorded for theinterim period:
Gains (losses) recorded for the interim period *Net unrealized gains (losses) on available-for-salesecurities, net of tax recorded for the interim period
Net amount of purchase, sale, and redemption
Amount of investment trusts whose NAV is deemed as
market value
Amount of investment trusts whose NAV is not deemed as
market value
Ending balance
Net unrealized gains (losses) on investment trusts held at thebalance sheet date among the amount recorded to gains(losses) for the interim period *13,686
1,027
12,658
8,932
143,760

1,027* Those amounts are included in investment income and investment expenses in the interim
non-consolidated statement of income.

b)

Breakdown of balance by restriction on cancellation as of the end of interim period
Millions of Yen
As of September 30,
2022
Investment trusts which need more than 1 month to cancel
from the notification of cancellation
Other than above

19¥

50,807
92,952Asahi Mutual Life Insurance Company

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

Beginning balance
Gains (losses) and net unrealized gains (losses) on
available-for-sale securities, net of tax recorded for theinterim period:
Gains (losses) recorded for the interim period *Net unrealized gains (losses) on available-for-salesecurities, net of tax recorded for the interim period
Net amount of purchase, sale, and redemption
Amount of investment trusts whose NAV is deemed as
market value
Amount of investment trusts whose NAV is not deemed as
market value
Ending balance
Net unrealized gains (losses) on investment trusts held at thebalance sheet date among the amount recorded to gains(losses) for the interim period *Millions of Yen
Six months ended
September 30, 2022
¥
5,104

74
74
(0)
5,178

-

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

20

Asahi Mutual Life Insurance Company

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

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¥

Millions of Yen
As of September 30, 2022
Fair Value
Level 2
Level 3

Total

- ¥1,667,307
36,592
36,592

21,945 ¥21,945
512,540
85,893-478 ¥
22,424478
22,424
175,7092,355,558
175,709298,195
36,592

1,630,715
1,630,715

85,893426,647
46,261

175,709-85,893
175,7092,057,362
1,676,976

1,667,307-

380,386
534,486
99,046
99,046297,621
31,113
266,508
473,80945,29545,295

380,386
297,621
31,113
266,508
2,675,603
99,04645,295
144,342(3) Description of the evaluation methods and inputs used to measure fair valuei)Securities including monetary claims bought which are treated as securities based on“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, listed
investment trusts and government bonds. In the case the market is inactive even if
the quoted market price is available, those securities are categorized as Level 2, whichmainly include corporate bonds and foreign bonds. In the case the quoted market priceis 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. Whensignificant unobservable inputs are used to measure fair values, those securities are
categorized as Level 3.
The fair value of unlisted investment trusts, which have no restriction on cancellationthat are significant enough to require compensation for risk from market participants,
are based on the quoted prices offered by counterparty financial institutions andcategorized as level 2.

21

Asahi Mutual Life Insurance Company

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 borrowers withhigh possibility of bankruptcy is stated at the amounts by deducting estimated losses
from the book value before direct write-offs. Loans to legally bankrupt borrowers,
substantially bankrupt borrowers and borrowers with high possibility of bankruptcy
are categorized as level 3.

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

22

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, 2022

Monetary claimsboughtSecurities

Available-forsale securities

Available-forsale securities

OthersForeign bonds(i)
Beginning balance
Gains (losses) and net unrealized
gains (losses) on available-for-salesecurities, net of tax recorded forthe interim period:
Gains (losses) recorded forthe interim period *1
Net unrealized gains (losses) on
available-for-sale securities, netof tax recorded for the interim period
Net amount of purchase, sale, issue,
and settlement
Transfer to fair values of Level 3 *2
Transfer from fair values of Level 3 *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
*1
*2
*3

¥

Derivative
financial
instruments
Total(i) + (ii)
Stock-related

（ii）
957 ¥

29,482 ¥30,440 ¥

270

(19)

(1,816)(1,835)

(329)

(10)

548

538

(329)

(9)

(2,364)(2,373)

-

(11)
926

41,541(4,997)64,211(11)
41,541(4,997)
65,137

1,469
1,409

-

548

548

(329)

Those amounts are included in investment income and investment expenses in the interim non-consolidated statement ofincome.
Those amounts are transferred from level 2 to level 3 because of lack of observable data. Those transfers were made at
the end of the interim period.
Those amounts are transferred from level 3 to level 2 since it has become possible to obtain observable data. Thosetransfers were made at the end of the interim period.

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 the23

Asahi Mutual Life Insurance Company

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.
6.

Investments and Rental Properties

The fair values of investment and rental properties are omitted because there have been no
significant changes compared with the corresponding fair values at the end of the previous fiscal
year.
7.

Securities Lent under Lending Agreements

The amount of securities lent under lending agreements was ¥247,832 million as of September
30, 2022.
8.

Claims

The total amount of claims against bankrupt and quasi-bankrupt obligors, claims withcollection risk, delinquent loans three or more months past due and restructured loans, whichwere included in claims, was ¥581 million as of September 30, 2022.
i)

Claims against bankrupt and quasi-bankrupt obligors were ¥431 million as of
September 30, 2022.

ii)

Claims with collection risk were ¥50 million as of September 30, 2022.

iii) Delinquent loans three or more months past due were ¥80 million as of September 30,
2022.
iv) Restructured loans were ¥20 million as of September 30, 2022.
Claims against bankrupt and quasi-bankrupt obligors are claims to obligors who are subject tobankruptcy, corporate reorganization or rehabilitation or other similar proceedings and otherobligors in serious financial difficulties.
Claims with collection risk are claims to obligors with deteriorated financial condition andresults of operations from which it is unlikely that the principal and interest on the claims will
be recovered, excluding those claims classified as claims against bankrupt and quasi-bankrupt
obligors.
Delinquent loans three or more months past due are loans for which interest payments or
repayments of principal are delinquent for three months or more from the due dates under theterms of the related loan agreements, excluding those claims classified as claims against
bankrupt and quasi-bankrupt obligors and claims with collection risk.
Restructured loans are loans for which certain concessions favorable to borrowers, such as

24

Asahi Mutual Life Insurance Company

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 claims
classified as claims against bankrupt and quasi-bankrupt obligors, claims with collection risk
and delinquent loans three or more months past due.
The direct write-offs related to claims decreased the amount of claims against bankrupt andquasi-bankrupt obligors described above by ¥6 million as of September 30, 2022.
9.

Separate Accounts

Total assets in separate accounts provided for in Article 118 of the Insurance Business Act were¥26,286 million as of September 30, 2022. The amounts of separate account liabilities were thesame as separate account assets.
10. Reserve for Dividends to Policyholders
The change in reserve for dividends to policyholders for the interim period ended September 30,
2022 was as follows:

Millions of Yen
Six months ended
September 30, 2022
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¥¥

28,644
2,121
1,590
1
29,177

11. Stocks of Subsidiaries and Affiliates
The amount of stocks of subsidiaries and affiliates the Company held was ¥54,647 million as of
September 30, 2022.
The Company provided capital of ¥8,000 million to Nanairo Life Insurance Co., Ltd. on
November 11, 2022.
12. Pledged Assets
Assets pledged as collateral were securities in the amount of ¥16,137 million as of September
30, 2022.
13. Policy Reserves for the Reinsurance Contracts
Reserve for outstanding claims for the reinsurance contracts provided in accordance with
Article 73, Paragraph 3 of the Enforcement Regulation of the Insurance Business Act whichapplies mutatis mutandis to Article 71, Paragraph 1 of the Enforcement Regulation of the25

Asahi Mutual Life Insurance Company

Insurance Business Act (hereinafter “reserve for outstanding claims for ceded reinsurance”) was¥12 million as of September 30, 2022.
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 ¥281 million as of September 30, 2022.
14. Redemption of Foundation funds
The Company redeemed ¥40,000 million of foundation funds, which is part of ¥80,000 millionof foundation funds offered in August 2015, prior to the redemption date. Accompanying theredemption, the Company transferred the same amount from reserve for fund redemption toreserve for redemption of foundation funds in accordance with Article 56 of the Insurance
Business Act.
15. 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¥16,935 million as of September 30, 2022. No assets were pledged as collateral as of September
30, 2022.
16. Commitment LineAs of September 30, 2022, there were unused commitment line agreements under which theCompany is the lender of ¥12,466 million.
17. Subordinated Bonds Payable
As of September 30, 2022, bonds payable are subordinated bonds payable, for which therepayments are subordinated to other obligations.
18. Subordinated Loans Payable
As of September 30, 2022, other liabilities included subordinated loans payable of ¥44,000
million, for which the repayments are subordinated to other obligations.

26

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:

Domestic bonds
Domestic stocks and other securities
Foreign securities

Millions of Yen
Six months ended
September 30,
2022
¥
3,742
800
6,221

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

Domestic bonds
Domestic stocks and other securities
Foreign securities

Millions of Yen
Six months ended
September 30,
2022
¥
2,628
577
13,707The major components of losses on valuation of securities were as follows:

Foreign securities
2.

Millions of Yen
Six months ended
September 30,
2022
¥
2

Policy Reserves for the Reinsurance Contracts

Provision for 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, 2022 was ¥3 million.
Reversal of policy reserves for ceded reinsurance, which was deducted in calculating reversal ofpolicy reserves for the interim period ended September 30, 2022 was ¥92 million.

27

Asahi Mutual Life Insurance Company

3.

Interest and Dividend Income

The breakdown of interest, dividends and other income was as follows:

Interest on deposits
Interest and dividends on securities
Interest on loans
Rent revenue from real estate
Other interest and dividends
Total

4.

Millions of Yen
Six months ended
September 30, 2022¥
050,996
2,417
8,046
436
61,896

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.

28

Asahi Mutual Life Insurance Company

６. Breakdown of Ordinary Profit (Fundamental Profit)(Millions of Yen)

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

Ａ

Ｂ
Ａ＋Ｂ

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

Six months ended
September 30, 2021
18,147
11,477
6,820
139
4,517
3,005
916
4
2,068
15
8,471
26,619
42
42
319
319
0
(276)
26,342Six months ended
September 30, 2022
7,895
19,944
10,7644,437
4,743
25,53816,913
2
8,156
466(5,594)2,301
15,87915,879100
100
015,77918,080※ The above fundamental profit is calculated based on the new calculation method.

（Reference） Breakdown of "other" items

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

29

Six months ended
September 30, 2021
(4,501)(1,748)(2,704)(Millions of Yen)
Six months ended
September 30, 2022
(4,276)(2,849)(1,794)

(48)

368

4,517
1,748
2,704

4,743
2,849
1,794

64

98

15
-

466
-

15

466

Asahi Mutual Life Insurance Company

７．Disclosed Claims Based on Insurance Business Act(Millions of Yen, ％)As of March 31, 2022

As of September 30, 2022

Claims against bankrupt andquasi-bankrupt obligors

453

431

Claims with collection risk

70

50

Delinquent loans three or moremonths past due

66

80

Restructured loans

20

20

Subtotal609

581（Percentage of total）(0.11)(0.11)

Claims against normal obligors

530,361

541,228

Total

530,971

541,809

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

30

Asahi Mutual Life Insurance Company

8. Solvency Margin Ratio(Millions of Yen)
As of March 31, 2022 As of September 30, 2022

Total solvency margin（Ａ）

1,009,231

874,557

Foundation funds and surplus

368,564

340,078

Reserve for price fluctuation

48,21049,470Contingency reserve

77,88962,009286

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

204,154

120,828

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

29,30629,189

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

145,556

146,684

Qualifying subordinated debt

141,424

146,424--

Deduction(25,000)(42,000)

Others

18,83921,540211,372

209,058

General allowance for possible loan losses

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

Total amount of risk

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

Insurance risk

R1

12,078

11,835

Third sector insurance risk

R8

10,727

10,798Risk of assumed yield

R2

66,74965,587

Minimum guarantee risk

R7

1,027

1,021

Investment risk

R3

137,767

136,675

Operational risk

R4

4,567

4,518

954.9%

836.6%

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

Notes:
1. The figures above are calculated based on Articles 86 and 87 of the Enforcement Regulation of the Insurance Business Act
and 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 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.

31

Asahi Mutual Life Insurance Company

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

As of March 31, 2022

As of September 30, 2022

AmountAmountIndividual variable insurance

28,17526,286

Individual variable annuities--

Group annuity products--

28,17526,286

Total（2）Sum Insured of Policies in Force

As of March 31, 2022

As of September 30, 2022

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

86,87912

85,472

Total

12

86,87912

85,472As of March 31, 2022

As of September 30, 2022

AmountAmountNumber of policies(Thousands)(Millions of Yen)

Number of policies(Thousands)(Millions of Yen)

Individual variable annuities

-

-

-

-

Total

-

-

-

-

32

Asahi Mutual Life Insurance Company

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

Six months ended
September 30, 2021

Six months ended
September 30, 2022

Ordinary income

299,953

343,479

Ordinary profit

24,643

13,986

Net surplus attributable to the Parent Company

17,581

10,968Comprehensive income

26,460(56,608)(Millions of Yen)

As of March 31, 2022
Total assets
Solvency margin ratio

33

As of September 30, 2022

5,502,292

5,321,803

982.2%

876.3%

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
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
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

34

As of March 31, 2022

As of September 30, 2022

47,030111,000
22,5344,536,365
311,416
369,142
33,255
11
6,788
64,605
524
168
(550)
5,502,292

49,79866,00021,281
4,398,619
292,608
366,133
35,062
11
16,72752,383484
23,406(712)
5,321,803

4,426,229
32,0254,365,560
28,644776
102,424
378,694
32,852
48,2102,913
15,711
5,007,812

4,382,928
38,4144,315,336
29,177382
102,424
347,057
32,28849,47015,5914,930,144

91,000166,000
281
111,982369,264

51,000206,000
281
77,097334,379

173,938

106,085(46,739)(2,077)125,12194
494,480
5,502,292(47,047)(1,826)57,21069
391,659
5,321,803

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 sales of securities
Losses on valuation of securities
Losses on derivative financial instruments
Investment losses on separate accounts
Operating expenses
Other ordinary expenses
Ordinary profit
Extraordinary gains
Extraordinary losses
Surplus before income taxes
Income taxes including deferred taxes
Total income taxes
Net surplus
Net surplus attributable to non-controlling interests
Net surplus attributable to the Parent Company

35

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(Millions of Yen)
Six months ended
September 30, 2022
343,479
205,245
80,307
61,521
10,76457,925
329,492
201,627
53,25852,991
49,68040,117
1,250
6,391
6,389
1
36,826
1,834
16,913
2
8,156
949
66,25018,396
13,986242
1,908
12,320
1,325
1,325
10,99426
10,968Asahi Mutual Life Insurance Company

（Unaudited Consolidated Statements of Comprehensive Income）
Six months ended
September 30, 2021

(Millions of Yen)
Six months ended
September 30, 2022

Net surplus

17,606

10,994

Other comprehensive income:

8,854(67,602)8,689(67,853)164

250

26,460(56,608)

26,435(56,634)

24

26

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

36

Asahi Mutual Life Insurance Company

（4）Unaudited Consolidated Statements of Cash FlowsSix months ended
September 30, 2021

I. Cash flows from operating activities
Surplus before income taxes
Depreciation of rental real estate and other assets
Depreciation
Impairment losses
Increase (decrease) in reserve for outstanding claims
Increase (decrease) in policy reserves
Provision for interest on policyholders’ dividend reserves
Increase (decrease) in allowance for possible loan losses
Increase (decrease) in net defined benefit liabilities
Increase (decrease) in reserve for price fluctuation
Interest, dividends and other income(Gains) losses on securities(Gains) losses on derivative financial instruments
Interest expenses
Foreign exchange (gains) losses, net(Gains) losses on tangible fixed assets
Others, net
SubtotalInterest, dividends and other income received
Interest paid
Dividends to policyholders paid
Income taxes (paid) refunded
Net cash provided by (used in) operating activities
II. Cash flows from investing activities
Proceeds from sales and redemptions of monetary claims bought
Purchases of securities
Proceeds from sales and redemptions of securities
Disbursements for loans
Proceeds from collections of loans
Proceeds from derivative financial instruments
Increase (decrease) in payables under securities borrowing transactions①Total of investing activities[I+①]
Purchases of tangible fixed assets
Proceeds from sales of tangible fixed assets
Others, net
Net cash provided by (used in) investing activities
III. Cash flows from financing activities
Proceeds from debt borrowing
Redemption of debt borrowing
Redemption of foundation funds
Payment of interest on foundation funds
Dividends paid to non-controlling interests
Others, net
Net cash provided by (used in) financing activities
IV.Net increase (decrease) in cash and cash equivalents
V.Cash and cash equivalents at the beginning of the inerim period
VI. Cash and cash equivalents at the end of the interim period(Millions of Yen)
Six months ended
September 30, 2022

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

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

1,232
(396,440)
490,938(20,239)
43,270(135,022)
40,02423,7628,430(3,048)507(6,541)
14,680(4,089)(36)(376)(4,501)(802)
157,149
156,347

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

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.

37

Asahi Mutual Life Insurance Company

（5）Unaudited Consolidated Statements of Changes in Net Assets
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
remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

Total
net assets(1,349)166,49779

521,014

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

Beginning balance

213,201Land
revaluationdifferences(45,354)

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

Six months ended September 30, 2022

(Millions of Yen)
Foundation funds and others

Beginning balance

Foundation
funds

Reserve forredemption offoundation
funds

Reserve forrevaluation

Consolidated
surplusTotal
foundation
funds andothers91,000166,000

281

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

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

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

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

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

308

308

Net changes in the interim period(40,000)

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

Ending balance

51,000206,000

281

77,097334,379

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

Beginning balance

173,938

Total

Land
revaluationdifferences

Accumulated
accumulated
remeasurements
otherof definedcomprehensive
benefit plans

Noncontrollinginterests

Total
net assets

94

494,480

income(46,739)(2,077)125,121

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

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

(308)

250

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

Net changes in the interim period(67,853)

(308)

250

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

Ending balance

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

391,659

39

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, 2022 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

40

Asahi Mutual Life Insurance Company

position and results of operation of the Company’s group, these companies are excluded
from the consolidation.
(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.

41

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).
(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(5) Foreign currency translation
Foreign currency-denominated assets and liabilities (excluding the shares of
unconsolidated subsidiaries and affiliates) are translated into Japanese yen at the effective
exchange rate prevailing at the balance sheet date.
(6) Allowance for possible loan losses
Allowance for possible loan losses is provided in accordance with the Company’s standards

42

Asahi Mutual Life Insurance Company

of 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 “borrowers with high possibility of bankruptcy”), theCompany provides the amounts deemed as necessary considering the borrowers’
ability to pay, within the amounts after deductions of the amount expected to becollected through the disposal of 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 ¥6 million as of September 30, 2022.
(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.
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.

43

Asahi Mutual Life Insurance Company

■

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 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.

44

Asahi Mutual Life Insurance Company

(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) Reinsurance revenue
Reinsurance revenue is recorded as reinsurance claims and others received based on the
proportion ceded in reinsurance and others stipulated in the reinsurance contracts in thereporting period when the income and expenditure for ceded insurance policies (hereinafter“reinsurance ceded”) are recorded.
For modified coinsurance, ceding commissions which are received as part of amounts
equivalent to new policy acquisition costs for reinsurance ceded are recorded as reinsurance
revenue, while the same amounts are recorded as reinsurance receivables as unamortizedceding commissions and amortized over the period of the reinsurance contracts.
(14) 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.
(15) Reinsurance premiums
Reinsurance premiums are recorded as reinsurance premiums paid based on the proportion
ceded in reinsurance and others stipulated in the reinsurance contracts in the reporting
period when the income and expenditure for reinsurance ceded are recorded.
Part of policy reserves and reserve for outstanding claims corresponding to insurance
policies which have been reinsured is not set aside in accordance with Article 71, Paragraph
1 and Article 73, paragraph 3 of the Enforcement Regulation of the Insurance Business Act.

45

Asahi Mutual Life Insurance Company

(16) 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
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.
(17) 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 “Implementation Guidance on Accounting Standard for Fair Value
Measurement” (ASBJ Guidance No. 31, revised on June 17, 2021) from the reporting period
ended September 30, 2022.
In accordance with the transitional treatment set forth in Paragraph 27-2 of Implementation
Guidance on Accounting Standard for Fair Value Measurement, the Company has applied new
accounting policies prospectively. Following this, some investment trusts are categorized intosome level in the following “Note 5. Matters Concerning Fair Value of Major Financial
Instruments and Breakdown by Input Level”.
3.

Group Tax Sharing System

The Company and part of its subsidiaries have applied the group tax sharing system with theCompany as the parent company for group tax sharing purposes from the reporting period
ended September 30, 2022. As a result, the Company has applied the “Practical Solution on the
Accounting and Disclosure Under the Group Tax Sharing System” (ASBJ PITF No.42, issued

46

Asahi Mutual Life Insurance Company

on August 12, 2021) to the accounting and disclosure treatment of corporate tax, local corporate
tax and tax effect accounting.
4.

Financial Instruments

The balance sheet amounts, fair values and the differences between those of major financial
assets and liabilities as of September 30, 2022 were as follows. The following table does notinclude cash and deposits, call loans and payables under securities borrowing transactions
which are mostly settled in a short term and their fair values approximate their book values.

Monetary claims bought
Held-to-maturity debt securities
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

Millions of Yen
As of September 30, 2022
Balance Sheet
Fair Value
Difference
Amount¥21,281¥
23,350¥2,069
20,35522,424
2,069
926
926
4,322,557
4,355,903
33,34525,62725,627
273,578
298,195
24,6172,048,634
2,057,362
8,728
1,974,717
1,974,717
292,608
297,621
5,013
31,113
31,113
261,494
266,508
5,013
4,636,447
4,676,875
40,427
102,424
99,046(3,377)44,00045,295
1,295
146,424
144,342(2,081)(18,846)(18,846)(1,805)(1,805)(17,040)(17,040)-* 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 ¥21,725 million as of September 30, 2022.
Investment trusts for which the treatments are applied in accordance with Paragraph 24-3 and24-9 of “Implementation Guidance on Accounting Standard for Fair Value Measurement” areincluded in the table above.
Investments in partnerships and others for which the treatments are applied in accordance with
Paragraph 24-16 of “Implementation Guidance on Accounting Standard for Fair Value
Measurement” are not included in the table above. The amount of the investments inpartnerships and others, reported in the interim consolidated balance sheet was ¥54,336
million as of September 30, 2022.

47

Asahi Mutual Life Insurance Company

5.

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 to which each of the inputs belongs.

48

Asahi Mutual Life Insurance Company

(1) Financial assets and liabilities recorded at fair values on the interim consolidated balance
sheet

Monetary claims bought
Available-for-sale securities
Securities *1
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 bonds
OthersTotal assets
Derivative financial instruments *2
Currency-related
Stock-related*1Millions of Yen
As of September 30, 2022
Fair Value
Level 1
Level 2
Level 3
Total
¥
- ¥
- ¥
926 ¥
926
926
926
585,275
1,201,919
64,211
1,851,406
23,5382,089
25,627
6,307
6,307
7,467
6,923
2,840
561,737
35,761

1,289
799
1,199,830
6,207

64,211
-

1,289
7,467
6,923
3,639
1,825,778
41,968376,91264,49484,568585,275-

477,314539,463
176,844
1,201,919(20,256)(20,256)-

64,211
65,1371,409
1,409

477,314376,912668,168
261,413
1,852,332(18,846)(20,256)
1,409

Investment trusts for which the treatments are applied in accordance with Paragraph 24-3 and 24-9 of“Implementation Guidance on Accounting Standard for Fair Value Measurement” are not included in the table
above.
The amount of the investment trusts for which the treatments are applied in accordance with Paragraph 24-3of the implementation guidance, reported in the interim consolidated balance sheet was \143,760 million as of
September 30, 2022. The amount of the investment trusts for which the treatments are applied in accordancewith Paragraph 24-9 of the implementation guidance, reported in the interim consolidated balance sheet was\5,178 million as of September 30, 2022.

*2

Assets and liabilities generated by derivative financial instruments are offset and presented net. Net liabilities intotal are presented in parentheses.

i)

Investment trusts for which the treatments are applied in accordance with Paragraph24-3 and 24-9 of “Implementation Guidance on Accounting Standard for Fair Value
Measurement”

49

Asahi Mutual Life Insurance Company

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

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

Millions of Yen
Six months ended
September 30, 2022¥
121,141
13,686
1,027
12,658
8,932
143,760

1,027*1 Those amounts are included in investment income and investment expenses in the interim
consolidated statement of income.
*2 Those amounts are included in net unrealized gains (losses) on available-for-sale securities,
net of tax in other comprehensive income in the interim consolidated statement ofcomprehensive income.

b)

Breakdown of balance by restriction on cancellation as of the end of interim period
Millions of Yen
As of September 30,
2022
Investment trusts which need more than 1 month to cancel
from the notification of cancellation
Other than above

50¥

50,807
92,952Asahi Mutual Life Insurance Company

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

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

Millions of Yen
Six months ended
September 30, 2022
¥
5,104
74
74
(0)
5,178

-

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

51

Asahi Mutual Life Insurance Company

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

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¥

Millions of Yen
As of September 30, 2022
Fair Value
Level 3
Level 2

Total

- ¥1,667,307
36,592
36,592

21,945 ¥21,945
512,540
85,893-22,424478 ¥
22,424478
2,355,558
175,709298,195
175,709
36,592-

1,630,715
1,630,715

85,893426,647
46,261

175,709-85,893
175,7092,057,362
1,676,976

1,667,307-

380,386
534,486
99,046
99,046297,621
31,113
266,508
473,80945,29545,295

380,386
297,621
31,113
266,508
2,675,603
99,04645,295
144,342(3) Description of the evaluation methods and inputs used to measure fair valuei)Securities including monetary claims bought which are treated as securities based on“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, listed
investment trusts and government bonds. In the case the market is inactive even if
the quoted market price is available, those securities are categorized as Level 2, whichmainly include corporate bonds and foreign bonds. In the case the quoted market priceis 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. Whensignificant unobservable inputs are used to measure fair values, those securities are
categorized as Level 3.
The fair value of unlisted investment trusts, which have no restriction on cancellationthat are significant enough to require compensation for risk from market participants,
are based on the quoted prices offered by counterparty financial institutions andcategorized as level 2.

52Asahi Mutual Life Insurance Company

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 borrowers withhigh possibility of bankruptcy is stated at the amounts by deducting estimated losses
from the book value before direct write-offs. Loans to legally bankrupt borrowers,
substantially bankrupt borrowers and borrowers with high possibility of bankruptcy
are categorized as level 3.

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

53

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, 2022

Monetary claimsboughtSecurities

Available-forsale securities

Available-forsale securities

OthersForeign bonds

¥

Total
(i) + (ii)
Stock-related

（ ii）

(i)
Beginning balance
Gains (losses) and othercomprehensive income for theinterim period:
Gains (losses) recorded forthe interim period *1
Other
Other comprehensive
comprehensive income
incomerecorded for the interim period *2Net amount of purchase, sale,issue, and settlement
Transfer to fair values of Level 3 *3Transfer from fair values of Level 3 *4
Ending 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

Derivative
financial
instruments

957 ¥29,482 ¥30,440 ¥

270

(19)

(1,816)(1,835)

(329)

(10)

548

538

(329)

(9)

(2,364)(2,373)

-

(11)
926

41,541(4,997)64,211(11)
41,541(4,997)
65,137

1,469
1,409

-

548

548

(329)

*1 Those amounts are included in investment income and investment expenses in the interim consolidated statement ofincome.
*2 Those amounts are included in net unrealized gains (losses) on available-for-sale securities, net of tax in othercomprehensive income in the interim consolidated statement of comprehensive income.
*3 Those amounts are transferred from level 2 to level 3 because of lack of observable data. Those transfers were made at
the end of the interim period.
*4 Those amounts are transferred from level 3 to level 2 since it has become possible to obtain observable data. Thosetransfers were made at the end of the interim period.

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

54

Asahi Mutual Life Insurance Company

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 the 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.
6.

Investments and Rental Properties

The fair values of investment and rental properties are omitted because there have been no
significant changes compared with the corresponding fair values at the end of the previous fiscal
year.
7.

Claims

The total amount of claims against bankrupt and quasi-bankrupt obligors, claims withcollection risk, delinquent loans three or more months past due and restructured loans, whichwere included in claims, was ¥581 million as of September 30, 2022.
i)

Claims against bankrupt and quasi-bankrupt obligors were ¥431 million as of September 30, 2022.

ii)

Claims with collection risk were ¥50 million as of September 30, 2022.

iii) Delinquent loans three or more months past due were ¥80 million as of September 30, 2022.
iv)

Restructured loans were ¥20 million as of September 30, 2022.

Claims against bankrupt and quasi-bankrupt obligors are claims to obligors who are subject tobankruptcy, corporate reorganization or rehabilitation or other similar proceedings and otherobligors in serious financial difficulties.
Claims with collection risk are claims to obligors with deteriorated financial condition andresults of operations from which it is unlikely that the principal and interest on the claims will
be recovered, excluding those claims classified as claims against bankrupt and quasi-bankrupt
obligors.
Delinquent loans three or more months past due are loans for which interest payments or
repayments of principal are delinquent for three months or more from the due dates under theterms of the related loan agreements, excluding those claims classified as claims against
bankrupt and quasi-bankrupt obligors and claims with collection risk.
Restructured loans are loans for which certain concessions favorable to borrowers, such as
interest reduction or exemptions, rescheduling of due dates of principal or interest payments,
waivers of claim or other terms, have been negotiated for the purpose of assisting andsupporting the borrowers in the restructuring of their businesses. This category excludes claims
classified as claims against bankrupt and quasi-bankrupt obligors, claims with collection risk

55

Asahi Mutual Life Insurance Company

and delinquent loans three or more months past due.
The direct write-offs related to claims decreased the amount of claims against bankrupt andquasi-bankrupt obligors described above by ¥6 million as of September 30, 2022.
8.

Separate Accounts

Total assets in separate accounts provided for in Article 118 of the Insurance Business Act were¥26,286 million as of September 30, 2022. 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,
2022 was as follows:

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

Millions of Yen
Six months ended
September 30,
2022¥
28,644
2,121
1,590
1
¥
29,177

10. Pledged Assets
Assets pledged as collateral were securities in the amount of ¥16,137 million as of September
30, 2022.
11. Unamortized Ceding Commissions
The amount of unamortized ceding commissions for reinsurance contracts stipulated in Article
1, Paragraph 5 of the Japanese Ministry of Finance Public Notice No. 50, 1996 was ¥16,452
million as of September 30, 2022.
12. Securities Lent under Lending Agreements
The amount of securities lent under lending agreements was ¥247,832 million as of September
30, 2022.
13. Redemption of Foundation Funds
The Company redeemed ¥40,000 million of foundation funds, which is part of ¥80,000 millionof foundation funds offered in August 2015, prior to the redemption date. Accompanying theredemption, the Company transferred the same amount from reserve for fund redemption to

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Asahi Mutual Life Insurance Company

reserve for redemption of foundation funds in accordance with Article 56 of the Insurance
Business Act.
14. 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¥16,935 million as of September 30, 2022. No assets were pledged as collateral as of September
30, 2022.
15. Commitment LineAs of September 30, 2022, there were unused commitment line agreements under which theCompany is the lender of ¥12,466 million.
16. Subordinated Bonds Payable
As of September 30, 2022, bonds payable are subordinated bonds payable, for which therepayments are subordinated to other obligations.
17. Subordinated Loans Payable
As of September 30, 2022, other liabilities included subordinated loans payable of ¥44,000
million, for which the repayments are subordinated to other obligations.

III. Notes to Unaudited Consolidated Statement of Income
1.

Investment Income and Expenses

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

Domestic bonds
Domestic stocks and other securities
Foreign securities

Millions of Yen
Six months ended
September 30,
2022
¥
3,742
801
6,221

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Asahi Mutual Life Insurance Company

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

Domestic bonds
Domestic stocks and other securities
Foreign securities

Millions of Yen
Six months ended
September 30,
2022
¥
2,628
577
13,707The major components of losses on valuation of securities were as follows:

Foreign securities
2.

Millions of Yen
Six months ended
September 30,
2022
2

Reinsurance Revenue and Reinsurance Premiums

The increased amount of unamortized ceding commissions for reinsurance contracts stipulated
in Article 1, Paragraph 5 of the Japanese Ministry of Finance Public Notice No. 50, 1996 for theinterim period ended September 30, 2022 was ¥11,872 million, which was included inreinsurance revenue among premium and other income.
The decreased amount of unamortized ceding commissions for reinsurance contracts stipulated
in Article 1, Paragraph 5 of the Japanese Ministry of Finance Public Notice No. 50, 1996 for theinterim period ended September 30, 2022 was ¥1,812 million, which was included inreinsurance premiums among claims and other payments.
3.

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.

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Asahi Mutual Life Insurance Company

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

As of March 31, 2022 As of September 30, 2022
Total solvency margin（Ａ）

1,021,040

901,552

Foundation funds and surplus

358,018

327,033

Reserve for price fluctuation

48,21049,470Contingency reserve

78,12562,679

-

-

288

333

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

204,157

120,830

Net unrealized gains on land × 85%

29,30629,189(2,885)(2,634)

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

145,556

146,685

Qualifying subordinated debt

141,424

146,424

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

Deduction--

18,83921,540207,900

205,754

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

12,078

11,835

Ordinary insurance risk

R5

-

-

Disaster insurance risk

R6

-

-

Third sector insurance risk

R8

10,963

11,467

Small amount short-term insurance provider insurance risk

R9

-

-

Risk of assumed yield

R2

66,74965,587

Minimum guarantee risk

R7

1,027

1,021

Investment riskR3

134,312133,327

Operational risk

R4

4,502

4,464

982.2%

876.3%

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

Notes:
1. The figures above are calculated based on Articles 86-2 and 88 of the Enforcement Regulation of the Insurance BusinessAct and the Public Notice No.23 of the Financial Services Agency of 2011.
2. "Excess amount of policy reserves based on full-time Zillmer method", "Qualifying subordinated debt" and "Excess
amount of policy reserves based on full-time Zillmer method and qualifying subordinated debt excluded from the calculationof solvency margin" are calculated based on the Public Notice No.25 of the Financial Services Agency of 2011.
3. "Minimum guarantee risk" is calculated by standard method.
(7) Segment information
The Company and its consolidated subsidiaries operate investment advisory business, etc., in addition to life insurance
business in Japan. However, information on these segments and related information are omitted because they represent
such a minor proportion of total segments.

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Asahi Mutual Life Insurance Company