SAIKYOSAIREN
One for All, All for One

Japan Reinsurance Federation of Consumers’ Cooperatives

FACT BOOK 2021
Report on FY2020 Results

President’s Statement
Firstly, I would like to express my sincere gratitude for your cooperation andcontinued support of the business operations of Saikyosairen.
As a reinsurance center for Japanese mutual aid cooperatives, Saikyosairen
contributes to the stabilization and development of our members’ businessthrough cooperative reinsurance, facilitating fellow cooperatives tostrengthen their relationships among each other.
This is in line with our corporate management philosophy “One for all, allfor one,” which is based on the core principle of mutual cooperatives and its spirit in supporting
each other.
This year marks 10 years since the Great East Japan Earthquake occurred. Under this adverse
situation, we would like to express our sincere appreciation to all of those who have overcome
tremendous difficulties and have dealt with rebuilding people’s livelihoods and revitalizing
towns and cities.
At this milestone, a relatively large-scale earthquake occurred off the coast of Fukushima
Prefecture. Since this earthquake that struck the disaster area in the course of reconstruction
from Great East Japan Earthquake under the COVID-19 pandemic is considered to be anaftershock of the Great East Japan Earthquake, I feel that it is a reminder that we should neverforget the disaster and that we should not let our memories fade.
The convergence of the COVID-19 pandemic had not been foreseen and unexpected situations
have been occurring one after another. This outbreak has brought various changes in people's
livelihoods such as work styles, consumption, health and communication. In mutual aid
cooperatives, we recognize that we must respond to major changes such as the linear
precipitation zone that has frequently occurred in recent years and intensification of natural
disasters.
In such an environment, Saikyosairen has formulated FY2021-2022 management plan with 4
visions laid out in our management plan to steadily enhance reinsurance corporative business.
Through steady efforts to management policy issues, we will move forward to establish a firm
position as a reinsurance center for Japanese mutual aid cooperatives.
We are pleased to announce the publication of our disclosure paper “Fact Book 2021” which
provides an overview of our business and various activities in FY2020. We humbly ask for you
to read the Fact Book and we hope that you reach a better understanding of Saikyosairen.
August, 2021

Tomoyasu Kato
President of Saikyosairen

S A I K YO S A I R E N
Reinsurance Center for Japanese Cooperatives

Table of Contents
I.

Saikyosairen as a Cooperative

2

II.

Cooperative Reinsurance & International Affairs

7

III.

FY2020 Business Summary

9

IV.

Risk Management & Compliance

13

V.

Membership Support & SDGs Promotion

14

I

Saikyosairen as a Cooperative
About Saikyosairen
Saikyosairen is the only consumer cooperative that specializes in reinsurance business forcooperatives. Through Fire, Natural Perils, Life, Traffic Accident and Automobile reinsurance
business, we contribute to the “stabilization of the management of member cooperatives andsound development of their business operations.” At the same time, we also make great
efforts to fulfill our functions “to reinforce the collaboration between those members andother cooperatives” and “to support the business thereof.”

1. Outline
Formal Name

: Japan Reinsurance Federation of Consumers’ Cooperatives (abbr. Saikyosairen)

Established: 13th January 1975
President: Tomoyasu KatoRegulated Law: The Consumers’ Livelihood Cooperative Society Law
Authority: The Ministry of Health, Labor and Welfare
Members: 65 members*
Membership Fund : JPY 6.7 billion*
Staff: 17 staff*
Business Conducted : Saikyosai (Reinsurance specialized for cooperatives)*As at 31st March 2021

2. Organization Chart
General Meeting
AuditorManagement Committee

Board of Directors
President

Tomoyasu Kato

Vice President

President

Natural Perils Policy
Management Committee
Natural Perils Policy Management
Committee consists of the members
who run the NPP program andSaikyosairen. Saikyosairen manages
the operational part of the committee.

Senior Managing Director
Internal Audit &Risk Management
Department

Hiroshi Suzuki

Reinsurance
Department

Marketing &Planning Section

Reinsurance
SectionAdministration
Department

Administration
SectionSenior Managing Director

FACT BOOK 2021

2

3. Member Cooperatives※Total 65 members (As at 31st March 2021)

Workers Cooperatives based on Prefecture

47 members

Federation of Prefectural and Workers Cooperatives (members not listed)

Nationwide Workers Cooperatives based on Occupation

8 members

Shinrin Rohren Kyosai

Japan All Forest Relating Industry Workers’ Insurance Cooperative Society

Jichiro Kyosai Seikyo

All Japan Prefectural and Municipal Workers’ Cooperative Society

Zensuido Kyosai

All Japan Water Supply Mutual Aid Cooperative Society

Zentobacco Seikyo

All Japan Tobacco Workers’ Cooperative Society

Kyousyokuin Kyosai Seikyo

Teachers Mutual Aid Cooperative Society

Zenkoku Koun Kyosai Seikyo National Traffic Industry Workers’ Mutual Aid Cooperative Society
Dentsu Kyosai Seikyo

Telecommunications, Electronic Information and Allied Workers’ Insurance Cooperative

JP Kyosai Seikyo

Mutual Aid Cooperative for Postal Workers

Cooperatives based on Occupation
Shuhan Seikyo

National Consumer Co-operatives for Liquor StoresTobacco Hanbai Seikyo

The National Co-operation Society of Tobacco Retailers

Zentoku Seikyo Kumiai

Zenkoku Yubin Kyokucho Seikatsu Kyodo Kumiai

Boueisyou SeikyoConsumer Cooperative of Ministry of Defense

4 members

Cooperatives Federation

2 members

Kokumin Kyosai co-op

National Federation of Workers and Consumers Kyosai Cooperatives

CO-OP Kyosairen

Japan CO-OP Insurance Consumers’ Cooperative Federation

Citizen’s Cooperatives

2 members

Kyoto Shimin Kyosai

Kyoto Citizens’ Cooperative Society

Kobe Shimin Seikyo

Kobe Citizens’ Cooperative Society

Small & Medium-sized Business Cooperatives

2 members

Zenbeihan

Japan Rice Millers’ and Distributors’ Cooperative

NikkarenNational Federation of Fire Insurance Co-operatives for Small Business

FACT BOOK 2021

3

4. About Kokumin Kyosai co-op Group
Saikyosairen is one of the entities in the Kokumin Kyosai co-op Group.
The Kokumin Kyosai co-op Group consists of three core organizations.
※Zenrosai has newly established the name Kokumin Kyosai co-op from June 2019.
The group name has also changed to Kokumin Kyosai co-op Group.

KokuminKyosai co-op

Saikyosairen

Zenrosai
Kyokai

Kokumin Kyosai co-op ( Est. 29th September 1957)(National Federation of Workers and Consumers Kyosai Cooperatives)

Kokumin Kyosai co-op is a national federation established under The Consumers’
Livelihood Cooperative Society Law, in operation of Kyosai business. It consists of 47
prefecture-based cooperatives, 8 occupation-based cooperatives and 3 cooperative
federations.

Saikyosairen ( Est. 13th January 1975)(Japan Reinsurance Federation of Consumers’ Cooperatives)

As the only entity to arrange ‘Saikyosai’ (Reinsurance specialized for cooperatives),
Saikyosairen supports original members by providing ‘Saikyosai’ to assist in securing thestability and development of their business operations as well as reinforcing thecollaboration between each cooperative through its provision of ‘Saikyosai.’Zenrosai Kyokai ( Est. 1st June 2004)(National Association for Workers’ Welfare and Cooperative Insurance)

Zenrosai Kyokai provides mutual aid services through the research and study of the life
and welfare of workers. Services include municipality associated Keicho insurance, Fireand Auto insurance for corporative bodies, as well as provision of Fire and Autoinsurance as an insurance agency.

FACT BOOK 2021

4

5. Associated Organizations
Saikyosairen collaborates with the following organizations for the purpose of developing
insurance business for cooperatives and activities among cooperatives and workers’ welfare.
Japan Cooperative Insurance Association Incorporated (JCIA)
JCIA promotes the sound development of the cooperative insurance business by contributing
to stabilizing the lives and improving the welfare of people engaged in the agriculture, forestry
and fisheries industries through providing information, publicity and consultation activities inrespect of cooperative insurance business to its members.

International Cooperative and Mutual Insurance Federation (ICMIF)ICMIF is a global trade association representing cooperative and mutual insurers. It conducts
various research and studies for its members. Saikyosairen joined ICMIF in September 2006 inorder to further strengthen the relationship with cooperatives and mutual insurers around theworld.
National Council of Workers’ Welfare (Chuo Rofukukyo)
National Council of Workers’ Welfare is a central organization of welfare. It comprises ofprefectural labor organizations, workers' welfare organizations, national federations ofconsumer cooperatives and Workers’ Welfare organizations.

FACT BOOK 2021

5

6. History of Saikyosairen and Natural Perils Policy
Since 1975 when Saikyosairen was founded as “Tansan Kyosai Rengokai,” it has gone
through the organizational changes described as below. Saikyosairen now assumes a rolein the current organization as the “Reinsurance Center.”
1975“Tansan Kyosai Rengokai” (Precedent organization of Saikyosairen) was formed tooperate Auto insurance business.

1980

Reestablished as “Jidosha Kyosairen,” due to business expansion and unification with
Rosairoren (Now known as Kokumin Kyosai co-op).

1987

Reorganization as “Zenrosai Saikyosairen”
Started to write reinsurance business for Automobile, Motorized Bicycle, Fire,
Comprehensive (Keicho), Traffic Accident and Life in December 1987.
Ceased to accept the insurance business for Automobiles and Motorized Bicycle andtransferred it to Zenrosai and each industrial cooperative member. Started to provide
claims services and data processing for Automobile insurance as a commissioned
business.

2000

Natural Perils Policy LaunchStarted to write Natural Perils reinsurance business and placed the reinsurance for thegroup in the international reinsurance market.

2004

Consolidation of Automobile Insurance Business into Zenrosai andFounding of Specialized Organization for Reinsurance
Consolidated Automobile insurance business of Workers Kyosai Group into Zenrosai
on 1st October 2004 and became the only Japanese organization that specialized inreinsurance business for cooperatives.

2006

Rebranding to “Saikyosairen”
Renamed as “Japan Reinsurance Federation of Consumers’ Cooperatives” (abbr.
Saikyosairen). Officially made a fresh start as “Reinsurance Center” for all Kyosaiorganizations.

FACT BOOK 2021

6

II Cooperative Reinsurance & International Affairs
1. Reinsurance Sector(1) Types of Reinsurance (Saikyosai) and Services
Saikyosairen offers the following seven types of reinsurance under license from the
Ministry of Health, Labor and Welfare.
Type of Reinsurance
Fire
Natural Perils
Comprehensive(Mutual Aid Benefit aka

Type of Service
Quota Share, Surplus, Excess of Loss
Quota Share, Excess of Loss

Quota Share, Surplus, Excess of Loss

Keicho)Life

Quota Share, Surplus, Excess of Loss

Traffic Accident

Quota Share, Surplus, Excess of Loss

Automobile
Compulsory Automobile
Liability Insurance

Quota Share, Excess of Loss
Assume reinsurance of CALI within the Kokumin Kyosai co-op group.
Provide an administrative service for mutual pooling and report to thegovernment in accordance with the Automobile Liability Security Act.

(2) What is Saikyosai?
◇Reinsurance provision for cooperatives(agreement between Saikyosairen and members)◇The purpose is to secure members’ business stability through risk diversification
Saikyosai is a method available to cooperatives who runs insurance business, to transfer allor part of their risks. In essence, it functions as insurance coverage for cooperatives.
In order for member cooperatives to offer long and stable coverage to their policyholders,
the large potential losses must be accounted for, especially those of earthquake andwindstorms.
Saikyosai enables cooperatives to reduce risk retention, thus stabilizing its business and toprovide variety of coverage for ever-diverse needs of their policyholders.

FACT BOOK 2021

7

2. Ceding to the Global Reinsurance Market
In order to maintain sound business operations, Saikyosairen utilizes global reinsurance
markets to divert part of the assumed risks internationally.
Specifically, we recognize securing ways to transfer Earthquake and Windstorm aggregatedrisks to be our primary mission. Therefore, we work with reinsurers to establish reinsurance
provisions that will ensure stability for the long term, while also promoting the values andprinciples of Japanese cooperatives to the Reinsurance market.
As a result, during the Tohoku Earthquake, due to the speedy recovery of reinsurance claims
from our reinsurance partners, we were able to smoothly process reinsurance claims payments
to our members.

Saikyosai Agreement

Reinsurance Agreement

Premium Payment
Risk Transfer

MemberCooperatives

Premium Payment
Risk Transfer

Saikyosairen
Claim Payment

Reinsurers
Claim Payment

FACT BOOK 2021

8

III FY2020 Business Summary
1. Contract Status
The number of policies increased by 0.73 million (4.1%) to 18.8 million as a result of increases
in Auto and other policies, which offset decreases in Fire, Traffic Accident, and Life policies fromthe previous fiscal year.
The total number of contract units decreased by 0.02% to 1.4 billion units.
Fire

NaturalPerilsNumber of Policies (Unit:10,000)

442.6

238.6

791.7

278.4

11.6

Variance from FY2019

-18.6

2.2

3.9

-6.3

Compre- Traffic
hensive Accident

CALI*

Consolidated
Total

99.6

25.5

1,888.3

-0.5

91.7

1.1

73.5

Life

Auto

% Change

-4.0%

0.9%

0.5%

-2.2%

-4.2%

1,155.9%

4.6%

4.1%

Number of Units (Unit:10,000)

86,73249,516

2,679

6,418

125

1,326

25.5

146,824

Variance from FY2019-1,608

445

2

-189

-38

0.9%

0.1%

-2.9%

-8
1,318
-6.2% 16,625.3%

1

-1.8%

4.6%

-0.0%

% Change*CALI = Compulsory Automobile Liability Insurance

2. Profit and Loss Performance(1) Cooperative Reinsurance Sector※CALI excluded① Gross Reinsurance Premium
The total gross reinsurance premium income increased by JPY 2.41 billion (12.4%) year on
year to JPY 21.84 billion as a result of higher income from Natural Perils and Fire, which
offset lower income from Traffic Accident.
② Gross Reinsurance Claims
The total gross reinsurance claims were JPY 19.60 billion, an increase of JPY 0.71billion(3.8%) year-on-year, due to an increase in reinsurance premiums paid for Natural Perils
policies, etc., despite a decrease in claims paid due to the absence of major natural disasters.

FACT BOOK 2021

9

【Reinsurance Business Performance】

Fire
Gross Reinsurance Premium *1
Variance from FY2019% Change
Gross Reinsurance Claims *2
Variance from FY2019% Change
Operating Surplus *3
Change (Amounts)

3,640
289
8.7%
3,463
-327
-8.6%
129
-242

Natural Compre- Traffic
Perils hensive Accident
17,030
466
505
2,372
107
-371
16.2% 30.1% -42.4%
15,086
361
591
1,446
-311
-164
10.6% -46.3% -21.7%
289
34
124
533
378
27

(Unit: JPY millions)

Life

Auto

Reinsurance
Total

CALI

Consolidated
Total

47
-1
-3.2%
37
6
21.1%
8
-29

160
14
10.3%
64
64
－
140
16

21,8492,411
12.4%
19,605
714
3.8%
727
685

5,840
-639
-9.9%
5,708
-349
-5.8%
－
－

27,690
1,772
6.8%
25,313
364
1.5%
727
685

(NB)

*1. Gross Reinsurance Premium = Reinsurance Premium + Ceded Reinsurance Premium (Received) + Ceded Reinsurance Claims(Recovered)*2. Gross Reinsurance Claims = Reinsurance Claims + Ceded Reinsurance Claims(Paid) + Ceded Reinsurance Premium (Paid) etc.
*3. Operating Surplus = Gross Reinsurance Premium - Gross Reinsurance Claims + Investment Income - Investment Expenses - Operating Expenses
3. ± Claim Reserves (Provision and Reversal) ± Liability Reserves(Provision and Reversal)(2) Investment Income
Investment income decreased by JPY 34 million (-26.2%) year on year to JPY 97 million due
to a decrease in interest income as a result of the continued low interest rate environment. As
a result, the investment yield was 0.19%.

(3) Operating Expenses
As a result of a decrease in conference expenses due to the impact of the COVID-19
pandemic, and a decrease in property expenses due to a decrease in communication andtransportation expenses as a result of the cancellation of the overseas reinsurance conference,the expense of the overall business decreased by JPY 3 million (-0.9%) to JPY 333 million.

(4) Surplus① Ordinary Surplus
Ordinary surplus was JPY 813 million, which is JPY 652 million (405.6%) higher than theprevious year, reflecting an increase in income from insurance premiums and other premiums
due to an increase in premiums received, despite an increase in reinsurance premiums paid.
After accounting for corporate taxes and corporate taxes adjustment, the surplus was JPY
590 million, which is JPY 481 million (441.9%) higher than the previous year.
② Unappropriated Surplus for the Period
Unappropriated surplus for the period, after adding JPY 0.01 billion of surplus carriedforward from the beginning of the fiscal year, resulted in JPY 0.60 billion (an increase of
JPY 0.11 billion from the previous year).
FACT BOOK 2021

10

3. Financial Statements※FY2020 ending on March 31, 2021

(1) Balance Sheet(Unit: JPY thousands)
FY 2019

FY 2020

24,456,001

27,965,553

Differences% Change

I. Assets
1. Cash and deposits
2. Money-in-trust
3. Money due
4. Securities
5. Loans
6. Reinsurance accounts receivables
7. Other business assets
8. Advance payment provisions
9. Uncollected profits
10. Other assets
11. Fixed assets for business operation
12. Fund
13. Deferred tax asset
14. Allowance for bad debts

Total Assets

3,509,552

14.4

-

-

-

6,000,000

5,500,000-500,000-8.3

21,712,004

20,061,353-1,650,650

-7.6

-

-

-

699,414745,537

46,122

6.6

3,484,924

3,785,292

300,367

8.6

11,322

12,3781,056

9.3

21,191

15,980-5,211-24.6

32,26831,838

-430

-1.3

5,787

16,38010,592

183.0

88,02688,026

6,024,319

5,892,361-131,958

-

-

-

-

-

-

-2.2
-

62,535,261

64,114,701

1,579,439

2.5

32,067,730

33,143,479

1,075,749

3.4

29,729,211

31,059,242

1,330,030

4.5

653,137

596,618-56,518-8.7

1,325,072

1,072,346-252,725

-19.1

5,361

7,545

2,183

40.7

7,695

71,82964,133

833.4

115,425

90,553-24,871-21.5

231,826

245,343

13,5175.8

30,467,531

30,971,221

503,690

1.7

1. Members capital(1) Membership fund(2) Surplus① Legal reserves② Voluntary reserves③ Unappropriated surplus for the period(Surplus for the period)
2. Difference of value and etc.

30,247,657

30,786,512

538,855

1.8

6,710,920

6,715,920

5,000

0.1

23,536,737

24,070,592

533,855

2.3

7,809,916

7,831,916

22,0000.3

15,237,449

15,637,449

400,000

2.6

489,371

601,226

111,85522.9

108,894590,063481,169441.9

219,873

184,708-35,164-16.0

Total Liabilities and Net Assets

62,535,261

64,114,701

1,579,439

2.5

II. Liabilities
1. Policy reserves
2. Reinsurance accounts payables
3. Other insurance business liabilities
4. Expenses payables
5. Other liabilities
6. Allowance
7. Price fluctuation reserves

III. Net Assets

FACT BOOK 202111

(2) Profit and Loss Statement(Unit: JPY thousands)
FY 2019

FY 2020

26,740,456

28,368,010

1,627,553

25,918,227

27,690,688

1,772,460

6.8

687,418

577,147-110,270-16.0

132,064

97,421-34,642

-26.2

2,745

2,752

6

0.2

Ordinary Expenses

26,579,507

27,554,293

974,786

3.7

1. Gross Reinsurance Claims *2
2. T ransfer to policy reserves
3. Investment expenses
4. Operating expenses
5. Other ordinary expenses
Ordinary surplus
Extraordinary income
Extraordinary loss
Surplus before taxes
Corporate and other taxes
Adjustment of corporate and other taxes
Net surplus for the period
Retained earnings from prior period
Payments from voluntary reserves
Unappropriated surplus for the period

24,948,775

25,313,623

364,847

1.5

1,294,202

1,907,178

612,976

Ordinary Income
1. Gross Reinsurance Premium *1
2. T ransfer from policy reserves
3. Investment income
4. Other ordinary income

Difference% Change---336,529

333,491---

160,949

813,717652,767

-

-

-

6.1

47.4
-

-3,037

-0.9
405.6
-

14,79913,517-1,282-8.7

146,150

800,200

654,049

447.5

1,209

64,557

63,3475235.336,046

145,579

109,533303.9

108,894590,063481,169441.9

36,042

11,163-24,879-69.0

344,434--344,434-100.0489,371

601,226

111,855

22.9■ The Profit and Loss Statement has been changed from a Net basis to a Gross basis. This change has no impact on thesurplus, etc.
*1 Gross Reinsurance Premium = Reinsurance Premium + Ceded Reinsurance Premium (Received) + Ceded
Reinsurance Claims (Recovered)*2 Gross Reinsurance Claims = Reinsurance Claims + Ceded Reinsurance Claims (Paid) + Ceded Reinsurance
Premium (Paid) etc.

FACT BOOK 2021

12

IV Risk Management & Compliance
1. Risk Management
Saikyosairen identifies various risks surrounding organization management and business
operations to execute appropriate risk management according to the characteristics ofeach risk.
We strive to strengthen our risk management to secure sound and adequate business
operations as the top priority of our management.
Based on the Risk Management Policy formed by the Board of Directors per risk, each
respective department establishes their own risk management regulations and procedures
to implement on risk management. The Internal Audit and Risk Management
Department sets a controlling office for risk management in order to implement acomprehensive and inter-department management.

2. Compliance
In recognition of Saikyosairen’s public mission and social responsibility, we value our dayto-day work in compliance with laws and regulations to gain respect and trust among
members through our fair and sound business operations.
In this respect, through ethical and legal compliance, as well as devotion of the utmost
effort to serve members as a general rule, we have established ‘Directors & Employees
Code of Conduct’ to encourage honesty and responsibility. That is then conveyed among
our employees.
Moreover, in order to raise awareness for Compliance by all of our officers and employees,
we have designated a “Month for promoting Compliance” every year and continue tocarry out educational activities.

3. External / Internal Audit
We have appointed four auditors, including one full-time and three part-time auditors toverify the appropriateness of business operations, execution of business and accounting.
This is done in cooperation with an independent auditor.
Internal Audit conducted by the Audit and Risk Management Department proposessuggestions and improvements by verifying and assessing the appropriateness of its
implementation status on respective departments.

FACT BOOK 2021

13

V Membership Support & SDGs Promotion
1. Supporting Member Cooperatives
Saikyosairen utilizes various channels toprovide business support to our member
cooperatives. Our support activities
include providing training seminars andnetworking opportunities as well as
facilitating lectures with topics related tocooperative insurance and reinsurance.
They are tailored not only for the member
cooperatives but also open for prospective
members.

Online Seminar: " BCP Formulation and Disaster Prevention
Measures for Organizations: Making the Unexpected Disaster
Expectable"

2. Disclosure
Saikyosairen discloses the following information for public viewing.
Website (https://www.saikyosairen.or.jp)

Fact Book

You can see the Fact Book via our website
both in Japanese and in English.

“Sairen Dayori” Quarterly News Letter”Sairen Dayori” is issued quarterly
informing our member cooperatives of
hot topics such as activity reports andbusiness risks surrounding cooperative
organizations.
※available only in Japanese

FACT BOOK 2021

14

3. SDGs Promotion
To fulfill our mission as a cooperative, we are working to promote the SDGs as an activity
that contributes to the implementation of a sustainable society.
① Activities to Mitigate Environmental Load
We have implemented environmentally friendly policies, such as reducing
consumption and recycling paper, as well as reducing energy consumption.
We have also promoted the purchase of environmentally conscious office products.
② Environmental Conservation Program
As a member of the Public Interest Incorporation Association, we have continued
to support the “Mt. Fuji Reforestation Project”which started as a 20th anniversary
project in 2007.
③ Purchase of “SDGs Bonds”
As a part of our asset management strategy, we purchased “SDGs bonds” (socialand sustainability bonds) that are appropriate for businesses that contribute to SDGs.

FACT BOOK 2021

15

SAIKYOSAIREN

Japan Reinsurance Federation of Consumers’ Cooperatives
2-12-10, Yoyogi
Shibuya-ku, Tokyo 151-8531, JAPANhttps://www.saikyosairen.or.jp/english/index.html

FACT BOOK 2021

16