For a Better Tomorrow

Year Ended March 20, 2018

ANNUAL REPORT

2018

Japan CO-OP Insurance Consumers' Co-operative Federation

ANNUAL REPORT 2018Year Ended March 20, 2018

CONTENTS
Visions of CO-OP Insurance

01

Financial Highlights

02

Message from the President

03

Topics of FY201704

Outline of the JCIF

05

Types of CO-OP Insurance

07

Payment of Claims

08

Risk Management and Compliance System

09

Activities

11

Business Overview of CO-OP Insurance for Fiscal 201713

Balance Sheet

15

Income Statement

16

Solvency Margin Ratio and Others

17

The official name of our organization is theJapan CO-OP Insurance Consumers' Co-operative Federation,commonly abbreviated as JCIF.

Visions of CO-OP Insurance
Through CO-OP Insurance and the mutual assistance of CO-OP members, we areaiming to help improve livelihoods of members, develop consumers’ co-operatives,promote the cooperative movement and enrich our society, focusing on covering
economic loss caused by various risks in members’ livelihoods.

1
We will offer insurance products that suit members’ needs with morereasonable premiums and better coverage.

2
We will promote communication between members and CO-OP employees,
and encourage a spirit of mutual aid among members.

3
We will enhance the social credibility of consumers’ co-operatives by the stableand efficient management of the insurance and the expansion of the insured.

4
We will offer members the opportunity to learn about insurance and help themacquire the ability to select the insurance that suits them most.

5
We will strive to address the problems of aging population with declining
birthrate, health and welfare, and contribute to society by social welfare activities,
disaster activities and others.

Japan CO-OP Insurance Consumers' Co-operative Federation

01

Financial Highlights
JPY Million*1

USD Million*2

2017

2018

2018

Ordinary income¥ 213,137¥ 219,660$ 2,069

Ordinary expenses

164,750

170,417

1,605

Ordinary surplus

48,38749,243463

Net surplus

10,384

10,22496¥ 358,004¥ 389,773$ 3,672

Total liabilities

233,018

255,320

2,405

Total capital

124,986

134,452

1,266

Number of total policies

8,521,919

8,675,084—

Number of policies (JCIF products only)

8,095,128

8,248,177—¥ 11,967¥ 12,299$ 115,886

1235.61299.7—For the years ended March 20, 2018 and 2017

As of March 20,2018 and 2017
Total assets

Total amount of insurance in force (JCIF products total)( ¥ billions/ $ millions)

Solvency margin (%)*1. Yen amounts are rounded down to the nearest ¥1 million.
*2. U.S .doller amounts are converted, for convenience only, at ¥106.13=US $1.00 (as of March 20, 2018) and rounded down to thenearest $1 million.

Total amount of insurance in force

Number of total policies(JCIF products total)(thousand)(¥ billion)

9,000

8,106

8,236

8,379

8,521

8,675

13,00012,000

8,000

7,000

11,28911,5092014

2015

11,744

11,967

12,29910,000

6,000
8,000
5,000
6,000

4,000

3,000

4,000

2,000
2,000
1,000

0

2014

2015

2016

2017

2018
(As of March 20)

02

Annual Report 2018

0

2016

2017

2018
(As of March 20)

Message from the President
Frequent typhoons and floods wreaked havoc in a number of regions in Japan last year, tragically taking
the lives of many people. I extend my sincere condolences to those affected by the disasters and praythat the deceased may rest in peace. To pay out insurance benefits and disaster relief money to thevictims of these disasters, we have devoted our efforts to visiting our policyholders in cooperation with
consumers’ co-operatives in the disaster-affected areas and the rest of Japan. We would like to express
our deepest gratitude and respect to everyone who kindly provided us with support.
Let me give you an outline of our business condition in Fiscal 2017, by the end of which the number ofpolicyholders for seven CO-OP Insurance products exceeded 8.67 million. During the fiscal year, we paidout a total of 65.5 billion yen in insurance benefits (101.8% of the previous fiscal year) to 1.32 million
insurance claimants. In September 2017, we launched Platinum 85, an insurance product for people aged
65 and above. By the end of the fiscal year, the product had been purchased by more than 60,000 people,
who have provided us with positive feedback on how pleased they were at being able to maintain theircoverage despite their age. We try to make Platinum 85’s brochure for new policyholders senior-friendly.
In recognition of its senior-friendly features, the brochure received the Another Voice Award at the UCDA
Award 2017 sponsored by the Universal Communication Design Association (UCDA).
Furthermore, during Fiscal 2017, that is the second year of the three-year CO-OP Insurance Medium-term
Business Plan 2018, we endeavored with member Co-ops to strengthen our organizational system for
driving the business plan forward, make improvements to streamline administrative processes and executeour business continuity plan (BCP). In June, we commenced our Health Improvement Support Project todevelop health promotion activities by consumers’ co-operatives nationwide with the aim of helping
CO-OP Insurance policyholders and Co-op members promote their health and fitness.
In Fiscal 2018, that is the final year under the Medium-term Business Plan 2018, we intend to steadily
execute our business plan in line with its basic policy. In addition, we will start discussing our next
three-year plan to be implemented from 2020, along with our action plans for 2019, while looking aheadto the formulation of our CO-OP Insurance Long-term Vision 2030.
This annual report mainly covers our business condition on CO-OP Insurance in Fiscal 2017. I hope that
this report will help you deepen your understanding of our business and CO-OP Insurance products.
We are determined to continue making concerted efforts to ensure that our member households enjoy
safe and secure lives through our operations in close cooperation
with Co-ops’ retailing and welfare businesses as well as
members’ activities. We appreciate your continued
understanding and support for CO-OP Insurance.

Toshiaki Sato
President
Japan CO-OP Insurance Consumers’
Co-operative Federation (JCIF)Japan CO-OP Insurance Consumers' Co-operative Federation

03

Topics of FY2017
Changes in the Number of Policyholders
In 1984, CO-OP Insurance Tasukeai started providing an insurance coverage of one million yen for deathand of 20,000 yen for inpatient care for a premium equivalent to the price of a cup of coffee, followed byterm life insurance named i.-Plus in 2000 and whole life insurance named Zutto-i. in 2011. As a result of
these efforts, the number of policyholders in JCIF products who contract with us reached 8.24 million in
March 2018. The spirit of mutual cooperation for supporting each other’s future has been carried on
without change since the launch of CO-OP Insurance.

Changes in the number of policyholders(million people)

98

CO-OP Insurance has helped members’
livelihoods step by step throughcooperation among members.

6.99

7

6.26

7.30

7.79
7.53 7.66

7.94 8.09

8.24

6.44

6

5.38
4.89

5

4.01

4

3.27
3

2.77
2.35
2.05

2

1.47
1.09

1

0.13
0

1984 1990 1994 1995 1997 1998 1999 2000 2002 2004 2005 2007 2008 2010 2011 2012 2013 2014 2015 2016 2017
(Fiscal year)

Platinum 85 Launched for 65 and Above
In response to Tasukeai policyholders’ demand for extended insurance coverage after expiration at 65, welaunched Platinum 85 to replace i.-Plus Gold. People aged 65 to 70 can newly take out Platinum 85, or
renew/revise their existing policies as long as health conditions to disclose do not apply to them.

04

Annual Report 2018

Outline of the JCIF
JCIF, Co-op and JCCU
Our organization is a federation of 152 consumer cooperative societies from across the nation. Althougheach member Co-op is an independent legal entity, each provides CO-OP insurance to its members incooperation with the federation.
The JCIF was established to take over and specialize in all mutual insurance businesses previously
conducted by our member Co-ops.

Co-op members
Member co-ops

Regional Co-ops, Co-op Associations etc.
Supplying products, promoting and supporting social activities etc.
JCIF

JCCU

Japan CO-OP Insurance Consumers’
Co-operative Federation

Japanese Consumers’ Co-operative Union

Product Business: Development and Distribution

CO-OP Insurance business

Catalog business

Promotion of Life-Planning Activities

Welfare, Environment, Reconstruction from disaster,
Support for member co-ops
Social Roles as a Consumers’ Organization

Roles of Member Co-ops and JCIFThe JCIF works to enhance ourrelationship with member Co-ops

Co-op members, Policyholders

by fulfilling the requirements ofour specified role and acting
cooperatively

toachieve

Window for thesubscription procedure

Contract of
CO-OP Insurance

ourcommon goals.

Member Co-ops

Cooperative
business

JCIF

Member Co-op
Window for CO-OP Insurance

Each member Co-op acts as a service window for the subscription procedure and also provides information
on CO-OP Insurance. In addition, each member Co-op works to support its members by offering insurance
products responding to a range of needs.

JCIF (Japan CO-OP Insurance Consumers’ Co-operative Federation)
The JCIF developing products in response to the needs of its members and others

As well as developing insurance products, the federation receives premiums, undertakes procedures
related to the payment of insurance claims and provides administrative support services to member Co-ops.
It also provides consulting services and responds to complaints.
●Each of the three federations of consumer cooperative societies which share responsibilities as a contract underwriter has a dual role asmember Co-op and federation of CO-OP Insurance.

Japan CO-OP Insurance Consumers' Co-operative Federation05

As of August 21, 2018

Structure of JCIFManagement Planning Div.
Public Relations, Information andCommunication DIv.

Executive
Officerin charge ofplanning

Joint
Management
Dept.

Organizational Operation Div.
Risk Managemant and Internal
Control Div.
Legal Div.
Member Satisfaction Promotion Div.
Operational Reform Div.

Board ofAuditors

Claims Planning Div.
Claims Handling First Div.

Operation Dept.

Claims Handling Second Div.
Contract Div.
Call Center Management Div.
Information Systems Div.

President

IT Planning Div.

Managing
Director

Product Development Div.
Actuarial Div.

Vice President

Administrative andDevelopment Dept.

Accounting Div.
Asset Management Div.
General Affairs Div.
Personal Planning Div.
Education and Learning Div.

Assistant ofManaging Director

Promotion Plannning Div.
CO･OP Tohoku Promotion Div.

Internal Auditing
Div.

Hokkaido and Tohoku Area
Promotion Div.

Seles Promotion
Dept.

Central Area Promotion Div.
Kansai Area Promotion Div.
Chushikoku Area Promotion Div.

Standing
Director

Kyusyu Area Promotion Div.
Publicity Planning Div.
Members Support div.
Security Business Div.

06

Annual Report 2018

Types of CO-OP Insurance
CO - OP Insurance

CO-OP Insurance

̶ Medical Insurance

̶ Term Life Insurance

Tasukeaii.-PlusThis insurance provides comprehensive coverage foroutpatient care due to accident, hospitalization,
surgery, death, disability, members’ death of theinsured, and damage to residences caused by fire orother perils. It is designed to meet the Co-op
members’ demands for coverage that is essential totheir daily lives at a reasonable premium.
There are four plans; plan for children, plan for
women, plan for medical coverage and plan for both
medical and death coverage.

This insurance simply provides coverage for death,
which can add special coverages for cancer,
hospitalization, and surgery of the insured. The
maximum sum insured is ¥30 million in death benefits
at a reasonable premium. Added coverage is available
by combining i.-Plus with Tasukeai. The contract
term is 10 years and the premium varies according to
the age and sex of the insured.
Coverage may be extended until the member reaches
the age of 85.

CO-OP Insurance

Zutto-i.

i.-PlusPlatinum 85

This insurance provides coverage for lifetime
hospitalization, surgery and death.
There are 2 types. One is a whole life insurance which
covers lifetime death. The other is a whole medical
insurance which covers lifetime hospitalization andsurgery.

Platinum 85, launched in September 2017, is an
insurance product available for people aged 65 to 70,
continuously covering inpatient treatment and death
until the age of 85. Its coverage does not change fromthe time of contract to its expiration. Optional
coverage for medical operations and death can also be
added as needed.

CO-OP Fire Insurance

CO-OP Life Insurance

̶ Whole Life Insurance

New i.i.

̶ Life InsuranceThis insurance provides coverage against damaged
residences caused by a wide range of perils including
fire, lightning, explosion, aircraft or vehicle crashes into
residences, windstorm and flood, flooding from a third
party residence, unexpected damaged from a third
party and earthquakes etc.

Basic plan that provides coverage for death with therebate plan can be matched up with medical coverage
and women’s health coverage. The contract term isrenewable after five years with the option of a rebate
after the five years. Coverage may be extended until
the member reaches the age of 80.
●CO-OP Insurance i.i. hasn’t been provided anymore.

Direct and Indirect Insurance Products Offered
CO-OP Insurance offers direct and indirect insurance products. In direct insurance contracts, JCIF as acontract underwriter is responsible for collecting insurance premiums and paying insurance benefits. We
offer four direct insurance products : CO-OP Insurance Tasukeai, CO-OP Insurance i.-Plus, and CO-OP
Insurance Zutto-i. (Whole Life Insurance and Whole life Medical Insurance).
CO-OP Insurance also provides indirect insurance products in the areas beyond the coverage of its direct
insurance products, in alliance with ZENROSAI*, property and casualty insurance firms, etc.
* In CO-OP Insurance contracts, each contract underwriter is individually responsible for insurance coverage according to the scope of its
underwriting, instead of sharing responsibility.

Japan CO-OP Insurance Consumers' Co-operative Federation

07

Payment of Claims
Payment of Claims
Payment of claims, excluding that for CO-OP Fire Insurance, is made by JCIF via member Co-ops or the
CO-OP Insurance Center (Payment of claims for CO-OP Fire Insurance is made by ZENROSAI). Upon receivinga claim request, we check the contract details, ask the policyholder for details about the request and thensend necessary materials. CO-OP Insurance values swift and efficient payment procedures from theviewpoint of policyholders. For example, basic information is printed on documents for claims in advance,and some procedures are simplified depending on the claim detail and amount.
CO-OP Insurance shortens the time from reception of a claim request to payment in order to enhance
policyholder’s satisfaction.

Flow of Claims

1 Reporting Occurrencesout
2 SendingDocuments for Claims

CO-OP
Insurance
Center(Call Center)

JCIF( Depts. related to
Claim Payment )3 Sending out Documents for Claims
Policyholder(Beneficiary)

4 Payment and Sending out Notice of Payment*This flowchart shows a case when a policyholder contacts Call Center.

Relief Money to Victims of Devastating Disasters
In the CO-OP Insurance plans, Tasukeai, i.-Plus, Zutto-i. and i.i. policyholders receive Relief Money inaccordance with the CO-OP Insurance Regulations on Devastating Disaster Relief Money. These regulations
were made with the aim of providing a token of our sympathy to victims of devastating disasters. CO-OP
Insurance offers special assistance in accordance with the magnitude of natural disaster. In the event of adevastating disaster, JCIF ensures a certain amount of payment swiftly so that it could alleviate a burden
on a policyholder as much as possible.

Enclosing Origami Cranes with Documents for Claims
When sending claimants necessary documents for claiming insurance benefits, CO-OP Insurance encloses
origami cranes made by Co-op members around the country. This activity originated around 1992, when
Co-op staff in charge of insurance in Nagano Prefecture began to enclose origami cranes with such
documents to express their sympathy.
In the process of paying insurance benefits or relief money to victims of the Great Hanshin and Awaji
Earthquake in 1995, we enclosed origami cranes with documents sent to them. Since these origami cranes
with a favorable reaction from many recipients, this activity was expanded nationwide. While many
volunteers currently participate in making origami cranes at Co-ops around the country, some recipients oforigami cranes in turn send us origami cranes of their own making, resulting in a growing circle of people
connected to each other with origami cranes. Moreover, many respondents to the questionnaire enclosedwith the announcement of insurance benefit payment express their appreciation for origami cranes. These
activities have steadily contributed to spreading the spirit of mutual help.
08

Annual Report 2018

Risk Management and Compliance System
Risk Management System
In pursuing sound management of the mutual insurance business, JCIF makes efforts to identify risks andimplement proper risk management.
Risks associated with the mutual insurance business include the following; Business risks, Project
development risks and insurance underwriting risks, asset management risks, Liquidity risks, ALM risks,
Office work risks and System risks, etc.
JCIF manages, monitors and controls the risks which we have. Each risk is monitored or controlled by the
responsible department.

Business risks
Risks related to the flaw of management system in the general management, and to the external factor
and the managerial strategic decision. It will suffer the big impact when it becomes obvious.
We manage to streamline the process of risk management assesment, understand the risk etc.

Product development risks and insurance underwriting risks
Risks that stem from fluctuations in the incidence rate of accidents covered beyond the forecasts made at
the time of setting the premium.
We manage these risks with due consideration for business stability.

Asset management risks
Risks of suffering a loss in the value of assets held due to fluctuations in interest rates, stock prices, foreignexchange rates, etc. or deterioration in the financial condition of financial institutions with which we
conduct transactions.
We ensure appropriate management of these risks based on a set of rules including the Rules for AssetManagement and the Regulations for Managing Asset Management Risks, which we established inaccordance with the Ordinance for Enforcement of the Consumer Cooperatives Act.

Liquidity risks
Risks that a given security or asset cannot be traded quickly enough in the market to prevent a loss (ormake the required profit).
We manage these risks to keep enough cash flow and monitor the risk or the cash flow regularly.

ALM risks
Risks incurred when asset and liabilities term are mismatched, forcing the company to buy and sell assets,or to take on liabilities, when conditions are unfavorable.
We manage to secure the founds corresponding to liabilities by setting fair guaranteed yields andmonitoring interest surplus and loss and so on.

Office work risks and System risks
Office work risks: Risks of suffering a loss due to officers or staff executing inaccurate administrative work,
causing an accident, or committing a fraud.
System risks: Risks of suffering a loss due to flaws in our computer system including failure andmalfunction, or fraudulent use of our computers.
With respect to office work risks and system risks, we conduct analysis and assessment, identify significant
risks, and take protective measures.

Japan CO-OP Insurance Consumers' Co-operative Federation

09

Solicitation Policy
Based on the Law on Sales of Financial Products, JCIF has established the following CO-OP Insurance
Solicitation Policy. These guidelines are posted visibly at the JCIF and at member Co-ops handling CO-OP
Insurance, and CO-OP Insurance sales personnel carry the guidelines in an all-out effort to bolster compliance.

CO-OP Insurance Solicitation Policy
Notification to all members
Based on the Law on Sales of Financial Products, we have established the following CO-OP
Insurance Solicitation Policy.

1. When offering CO-OP Insurance, every effort will be made to comply with the Consumer
Cooperatives Act, the Law on Sales of Financial Products, the Consumer Contract Act, the Act on
the Protection of Personal Information and other regulations to provide services in an
appropriate method.

2. When offering CO-OP Insurance, every effort will be made to ensure members fully understandproduct content and other important information.

3. When offering CO-OP Insurance, every effort will be made to respect the wishes of members, nottake up excessive amounts of members' time or space.

4. When a claim is made, every effort will be made to ensure swift and correct settlement.
5. Recognizing the importance of protection of privacy, contract information will be managed
stringently and appropriately.

6. Every effort will be made to gather members’ opinions and reflect these on developing
future CO-OP Insurance products and offering CO-OP Insurance.

Business Operations Based on Policyholders' Feedbacks(1) Member Satisfaction Promotion Division receives complaints and opinions by telephone
CO-OP Insurance, when developing products and paying claims, is making improvements based onpolicyholders’ feedbacks. In order to receive more feedbacks and reflect the opinions in our business, weestablished the consultation center in 2006, which is dedicated to handling complains, opinions and requests.

● Complaints we received at Member Satisfaction
Promotion Division in FY2017
We had 190,088 complaints and requests in Fiscal 2017.
Viewing the opinions we received as representing the voiceof our policyholders, we are striving to improve the problems.

Others39.1%

Requests 8.3%

Thanks49.1%

Complaints 3.5%(2) Improvement efforts resulting from complaints and opinions we receive
We have introduced the management system to unify the management of complaints and opinions we
receive so that related departments can share and swiftly resolve any issues. In addition, we report allcomplaints and opinions to all departments once a week.
10

Annual Report 2018

Activities
Life-Planning Activities
Life-Planning activities enable Co-op members to learn aboutmoney matters in their lives. In the Workshops on Reviewing
Insurance, which is a central topic, members gain the capability to
independently select insurance product that meets their needs.
As an integral part of Life-Planning activities, JCIF is training
members and Co-op staff to be Life-Plan-Advisor (LPA). Participantsof LPA courses learn about life planning, insurance, taxation andfinance in comprehensive lectures held by JCIF in order to become
LPA. As of March 20, 2018, there are 4,121 LPAs active at member
Co-ops across Japan.
Co-op carries out the following Life-Planning activities:
Lectures on Reviewing Lifestyles
Learning activities
Learning activities for kids
Individual consulting
Life-Planning Humorous Poem “Senryu”● Development of Life-Planning Activities
Life-Planning activities have now become firmly established as Co-op activities. In Fiscal 2017, more than
38,000 people in total participated in the activities, principally in Workshops on Reviewing Insurance.

Participants in Life-planning Activities

Number of participants

25,000Fiscal 2016

20,62820,000Fiscal 201718,761

15,00010,0007,930
6,389 6,532
4,509

5,000

0

2,732 2,318

LectureWorkshopWorkshop &game forchildren

4,566

3,468
1,036 1,157

Learning
activity

Indivisualconsulting

1,615 1,883“Senryu”
project

OthersJapan CO-OP Insurance Consumers' Co-operative Federation

11

Health Improvement Activities
A fundamental challenge for CO-OP Insurance activities is the improvement of the health and welfare ofpeople. In order to assist members and policyholders to improve their health, JCIF has installed automatic
blood pressure measuring devices at Co-op stores and offers free health consultations by phone.

(1) Automatic Blood Pressure Measuring Devices Installed
JCIF has installed automatic blood pressure measuring devices at more than 363 Co-op stores throughout
Japan. Since managing blood pressure is paramount for preventing all lifestyle-related diseases, it isessential to consistently measure blood pressure on a daily basis. The devices are easy for members to
use to test their blood pressure level while shopping and utilized for them to manage their health on adaily basis.

(2) CO-OP Insurance Health Call Center
JCIF offers a free phone consultation service made available to
Tasukeai, i.-Plus, Zutto-i. and New i.i. policyholders. JCIF contracts
specialist

counsellors

including

doctorsandnursesfromgovernmental corporation to give advice on health, treatment andcare-giving as well as instruction on which medial facility to use.
During Fiscal 2017, the call center fielded 45,439 calls for advice.

(3) Support Project for Health Promotion
JCIF commenced its CO-OP Insurance Support Project for Health Promotion in Fiscal 2017. As we
confront an aging population, it is crucial to build local communities where healthy seniors can fully
realize their potential. We therefore started supporting member Co-ops to implement health promotion
activities catered mainly to their middle-aged and older members.
Using the policyholders’ contribution generated by accumulating a part of the annual surplus from ourmutual insurance business, we execute the project with the aimof contributing to our policyholders, benefitting our mutual
insurance business, and demonstrating our comprehensive
capacity to address social challenges. Under the themes of foodlife, physical exercises and social participation, our member
Co-ops are implementing diverse efforts in view of their local
circumstances by cooperating with other organizations.
In Fiscal 2017, 33 activities were organized by 32 Co-ops, towhich we extended financial support totaling 204,291,038 yen.

Donation of School Bag covers
Since Fiscal 2015, as part of its social contribution activities, JCIF has been donating
covers for school bags (leather backpacks) to new first graders at elementary
schools across Japan in cooperation with local municipalities.
In Fiscal 2017, we donated a total of 243,893 covers to children newly enrolled in
5,028 elementary schools nationwide. To schools where pupils use nylon backpacks,
we donated plastic holders for teacher-parents correspondence notepads (145,163
holders to 1,637 schools nationwide).
The yellow school bag cover featuring an illustration of Kosuke, CO-OP Insurance’s official bear character,is eye-catching and makes it easier to spot children from afar. The covers help local communities watch
over their children and prevent traffic accidents.
12

Annual Report 2018

Business Overview of CO-OP Insurance for Fiscal 2017
Overview of the financial results of the CO-OP Insurance business is as follows:

8,675,084

Policyholders as of the end of Fiscal 2017 totaled

When broken down by product, Tasukeai policyholders increased by 0.2% from the previous year to
5,916,267, i.-Plus policyholders increased by 4.4% to 1,833,743, Zutto-i. policyholders increased by 13.2%
from the previous year to 498,167, CO-OP Fire Insurance policyholders increased by 0.3% to 400,853, and
CO-OP Life Insurance new-i.i. policyholders decreased by 4.2% to 26,054.

¥12,299 billion

Policies in force totaled

CO-OP Insurance has a total of ¥12,299 billion in policies in force (JCIF products only) , an increase of 2.8%
from the previous year.

¥186 billion

Premiums totaled

CO-OP Insurance has a total of ¥186 billion in premiums (JCIF products only) , an increase of 3.1% from theprevious year.

1,327,308

payments made

CO-OP Insurance made a total of 1,327,308 payments (JCIF products only) , an increase of 1.5% from theprevious year.

¥65,567 million

Total claims paid amount to

CO-OP Insurance paid a total of ¥65,567 million for insurance claims (JCIF products only) , an increase of
1.8% from the previous year.
* Refer to Page 8, about direct and indirect insurance.

Asset Management
Investment Assets

JPY Million*1

USD Thousand*2

Stocks

As of March 20,

2017

2018

composition
ratio(%)

Cash and deposits¥ 101,406¥ 121,761

34.1%$ 1,147,281

Money trust*3

50,14355,647

15.6%

524,328

Negotiable deposit

36,00029,0008.1%

273,249

Public andcorporate bond

137,719

150,70342.2%

1,419,984

255

255

0.1%

2,402

Foreign bond

0

0

0.0%

0

Money
Negotiable trust
deposit

Other securities

0

0

0.0%

0

8.1%

¥ 325,523¥ 357,367

100.0%$ 3,367,257

Stocks

Total

2018

0.1%

Public andcorporate
bond

42.2%

Cash anddeposits

34.1%

15.6%

*1. Yen Amounts are rounded down to the nearest ¥1 million.
*2. U.S. dollar amounts are converted, for convenience only, at ¥106.13= US$1.00 (as ofMarch 20, 2018) and rounded down to the nearest $1 thousand.
*3. Money held in trust are transferable warranty deposits.

Japan CO-OP Insurance Consumers' Co-operative Federation

13

CO - OP Insurance Business Overview by ProductCO - OP Insurance Tasukeai

CO - OP Insurance i.-Plus

2014

5,901,123

2014

2015

5,889,724

2015

2016

5,885,847

2016

2017

5,899,057

2017

2018

5,916,267

2018

1,529,839
1,609,576
1,692,247
1,755,819
1,833,743

As of March 20,

2017

2018

As of March 20,

2017

2018

Number of Policies

5,899,057

5,916,267

Number of Policies

1,755,819

1,833,743

Premium Income (¥millions)¥ 105,998¥ 106,223

Premium Income (¥millions)¥ 56,362¥ 58,912

Claims Paid (¥millions)¥ 42,647¥ 42,413

Claims Paid (¥millions)¥ 19,260¥ 20,093

CO - OP Insurance Zutto-i.
2014

235,673
300,2012015

370,6612016

440,252

2017

498,1672018

CO - OP Life Insurance

2014

2016
2017
2018

2017

2018

Number of Policies

440,252

498,167

Premium Income (¥millions)¥ 18,167¥ 20,954

Claims Paid (¥millions)¥ 2,495¥ 3,058

CO - OP Fire Insurance

New i.i.

2015

As of March 20,

33,22730,763
28,847
27,20826,054

2014

406,0072015

406,355

2016

401,6542017399,5312018

400,853* CO-OP Life Insurance New i.i. and CO-OP Fire Insurance are indirect insurance products.

14

Annual Report 2018

Balance Sheet
As of March 20, 2018 and 2017

AssetsJPY Million*1

USD Thousand*2

2017

2018

2018

¥ 101,406¥ 121,761$ 1,147,281

Money trust

50,14355,647524,328

Securities

173,974

179,958

1,695,637

Loans

−

－

－

Reinsurance account

66

118

1,111

6,233

6,333

59,672Contract account

311

308

2,902

Other mutual insurance assets

101

110

1,036

Prepaid expenses

45

43

405

Accrued income

195

183

1,724

Other assets

1,381

882

8,310

Fixed assets for business use

9,472

8,964

84,462

Investment in affiliates etc.

270

270

2,544

14,39915,191

143,135−−−¥ 358,044¥ 389,773$ 3,672,599¥ 215,745¥ 236,969$ 2,232,818

190

192

1,809

4,172

4,132

38,933Contract account

0

0

0

Other mutual insurance liabilities

51

39

367

Accrued expenses

2,008

2,189

20,625

Other liabilities

6,729

6,827

64,326

Allowance

1,144

1,308

12,324

Price fluctuation reserves

2,974

3,660

34,486¥ 233,018¥ 255,320$ 2,405,728¥ 123,664¥ 133,131$ 1,254,414

1,322

1,321

12,446

Total net assets¥ 124,986¥ 134,452$ 1,266,861

Total liabilities and net assets¥ 358,004¥ 389,773$ 3,672,599

Cash and deposits

Subcontracting accountDeferred tax assets
Deferred assets
Total assets

Liabilities
Policy reserves
Reinsurance account
Subcontracting accountTotal liabilities

Net assets
Member capital
Others

*1. Yen amounts are rounded down to the nearest ¥1 million.
*2. U.S. dollar amounts are converted, for convenience only, at ¥ 106.13 = US$1.00 (as of March 20, 2018) and rounded down to thenearest $1 thousand.

Japan CO-OP Insurance Consumers' Co-operative Federation

15

Income Statement
For the years ended March 20, 2018 and 2017

Ordinary Income:

JPY Million*1

USD Thousand*2

2017

2018

2018

Premium and other income¥ 181,249¥ 186,924$ 1,761,273

Reversal of policy reserves

30,241

30,243284,961

Investment income

1,392

1,849

17,422Other ordinary income

253

642

6,049

Total ordinary income¥ 213,137¥ 219,660$ 2,069,725¥ 97,091¥ 98,587$ 928,926

15,097

17,255

162,583

106

120

1,130

52,26854,133510,063

Other ordinary expenses

185

320

3,015

Total ordinary expenses¥ 164,750¥ 170,417$ 1,605,738

Ordinary Surplus¥ 48,387¥ 49,243$ 463,987

−

−

−

¥ 733

¥ 699

$ 6,586¥ 47,653¥ 48,544$ 457,401

Income taxes

4,664

4,898

46,150

Income taxes-deffered

− 690

− 791

− 7,453

Provision of rebate reserves

33,29534,212

322,359

Net surplus

10,384

10,224

96,334

525

526

4,956

−

−

−

Reversal of reserve for office system maintenance

521

12

113

Reversal of reserve for catastrophe solatium

231

813

7,660

Reversal of subscriber contribution

39

253

2,383

¥ 11,703¥ 11,830$ 111,467

Ordinary Expenses:
Claims paid
Provision of policy reserves
Investment expenses
Business expenses

Extraordinary Income or Loss:
Extraordinary income
Extraordinary loss
Surplus before taxes

Net surplus for the period
Reversal of reserve for business
continuity planning

Unappropriated surplus for the period*1. Yen amounts are rounded down to the nearest ¥1 million.
*2. U.S. dollar amounts are converted, for convenience only, at ¥ 106.13 = US$1.00 (as of March 20, 2018) and rounded down to thenearest $1 thousand.

16

Annual Report 2018

Solvency Margin Ratio and Others
Solvency Margin Ratio *3
As of March 20,
Total solvency margin *4 ①

JPY Million*1

2017

2018

2018

¥ 169,092¥ 183,039$ 1,724,667

27,37028,165

265,382

1,235.6%

1,299.7%

1,299.7%

Total risks ②
Solvency margin ratio = ① ÷ (②×1/2)×100

USD Thousand*2*1. Yen Amounts are rounded down to the nearest ¥1 million.
*2. U.S. dollar amounts are converted, for convenience only, at ¥ 106.13 = US$1.00 (as of March 20, 2018) and rounded down to thenearest $1 thousand.
*3. The solvency margin rate of JCIF is calculated based on the Consumer Cooperatives Act as determined by the Ministry of Health,Labour and Welfare.
Therefore, it is incommensurable with the solvency margin rate of life insurance companies and nonlife insurance companies.
According to the Ministry of Health, Labour and Welfare, the rate needs more than 200%.
*4. The total solvency margin is limited to what can be divided in the CO-OP Insurance business.

Breakdown of Basic Profit

JPY Million*1

USD Thousand*2

As of March 20,

2017

2018

2018

Basic profit *4¥ 50,266¥ 51,253$ 482,926

Investment profit *3

−5

− 101

− 951

Moratality profit *3

47,36844,028414,849

Expense profit *3

2,902

7,326

69,028*1. Yen Amounts are rounded down to the nearest ¥1 million.
*2. U.S. dollar amounts are converted, for convenience only, at ¥ 106.13 = US$1.00 (as of March 20, 2018) and rounded down to thenearest $1 thousand.
*3. Definitions are as follows:
Investment profit : Differential between the projected investment return (expected yield) and the actual investment return.
Mortality profit : Differential between the projected insurance payment (expected mortality rate) and actual claims for payment.
Expense profit : Differential between the projected operational expenses (projected operational expense ratio) and actual operationa
expenses.
*4. Basic profit is calculated by excluding capital gain/loss, such as sales gain or loss on marketable securities, and extraordinary gain/loss,
such as provision for contingency reserves, from recurring surplus. It is the index that shows the basic period income generated fromthe mutual aid business.

Equity Capital Ratio

JPY Million*1

USD Thousand*2

As of March 20,

2017

2018

2018

① Equity capital¥ 124,986¥ 134,452$ 1,266,861

42,31445,318427,005

167,301

179,771

1,693,875¥ 358,004¥ 389,773$ 3,672,600

34.9%

34.5%

34.5%

46.7%

46.1%

46.1%

② Contingency reserves
Revised equity capital〔=①+②〕③ Total assets
Equity capital ratio *3〔=①/③〕

Revised equity capital ratio *4*1. Yen Amounts are rounded down to the nearest ¥1 million.

*2. U.S. dollar amounts are converted, for convenience only, at ¥ 106.13 = US$1.00 (as of March 20, 2018) and rounded down to thenearest $1 thousand.
*3. Equity capital ratio = Equity capital ÷ Total assets*4. Revised equity capital ratio = Revise equity capital ÷ Total assets
Japan CO-OP Insurance Consumers' Co-operative Federation17

Profile of JCIF
Name
JCIF
(Japan CO-OP Insurance Consumers' Co-operative Federation)

Head office
4-1-13 Sendagaya, Shibuya-ku, Tokyo 151-0051, JAPAN

Established
November 5, 2008

Number of Member Co-ops
152 (as of March 20th, 2018)

Detail of operations
CO-OP Insurance Business

JCIF is the Federation Specializing in
Mutual Insurance Businesses
JCIF (Japan CO-OP Insurance Consumers’ Co-operative Federation) wasestablished in November 5, 2008.
Up until 2008, the JCCU and member co-ops were engaged in not only
mutual insurance business, but also retail business such as operating
stores and providing home delivery services. To avoid conflict with the
newly revised Co-op Law in 2008, it was decided to jointly establish a
new organization, the JCIF, to specialize in providing mutual insurance
products.
* Direct mutual insurance: a type of mutual insurance in which the insurer is directly
responsible for paying claims to policyholders.

Japan CO-OP Insurance Consumers'
Co-operative Federation
4-1-13 Sendagaya, Shibuya-ku, Tokyo 151-0051, JAPANTEL :+81-3-6836-1320
FAX:+81-3-6836-1321
http://coopkyosai.coop