February 13, 2015

Financial Results for the Nine Months Ended December 31, 2014
Fukoku Mutual Life Insurance Company (President: Yoshiteru Yoneyama) announces financial results
for the nine months ended December 31, 2014.

[Contents]
1. Business Highlights･････････････････････････

P.1

2. Investment Results of General Account Assets･････････････････････････

P.3

3. Non-consolidated Balance Sheets･････････････････････････

P.6

4. Non-consolidated Statements of Operations･････････････････････････

P.7

5. Breakdown of Ordinary Profits (Fundamental Profit)･････････････････････････

P.9

6. Solvency Margin Ratio･････････････････････････

P.10

7. Status of Separate Account･････････････････････････

P.11

8. Status of the Company, Subsidiaries and Affiliates･････････････････････････

P.12

Fukoku Mutual Life Insurance Company

1. Business Highlights(1) Policies in Force, New Policies and Surrendered and Lapsed Policies(i) Policies in Force
As of March 31, 2014
Number of policies

As of December 31, 2014
Amount(Thousands)

Number of policies(100 millions of yen)Amount(Thousands)

Changes(%, Pre-FYE)(100 millionsof yen)Changes(%, Pre-FYE)

Individual insurance

3,044

242,084

3,060

100.5

238,123

98.4

Individual annuities

758

29,487742

97.9

28,887

98.0

3,802

271,572

3,803

100.0

267,01098.3

Group insurance－

165,468－－

167,299101.1

Group annuities－

20,305－－

20,530101.1

Subtotal

Notes: 1. Policy amounts for individual annuities are equal to (a) the funds to be held at the time annuity payments are to commence foran annuity for which annuity payments have not yet commenced and (b) the amount of policy reserve for an annuity for which
payments have commenced.
2. Policy amount in force for group annuities is equal to the amount of outstanding policy reserve.

(ii) New Policies
Total
Nine months ended
December 31, 2013

New business

Net increase by
conversion

Number of policies

AmountAmountAmount(Thousands)(100 millions of yen)(100 millions of yen)(100 millions of yen)

Individual insurance

276

12,552

12,472

80

Individual annuities

12

398

413

(14)

288

12,95012,88565

Group insurance

－

86

86

－

Group annuities

－

0

0

－

Subtotal

Total
Nine months ended
December 31, 2014

Number of policies(Thousands)

AmountChanges(%, YoY)

Net increase by
conversion

New business(100 millionsof yen)Changes(%, YoY)

AmountAmount(100 millions of yen)(100 millions of yen)

Individual insurance

268

97.0

12,061

96.1

11,132

Individual annuities

14

121.5

502

126.3

516

929
(13)
915

283

98.1

12,56497.0

11,649Group insurance

－

－

40

46.4

40

－

Group annuities

－

－

0

335.3

0

－

Subtotal

Notes: 1. Number of new policies is the sum of new business and policies after conversion.
2. Amount of new policies for individual annuities, both new business and net increase by conversion, is equal to the funds to be heldat the time annuity payments are to commence.
3. Amount for group annuities is equal to the initial premium payment.

(iii) Surrendered and Lapsed Policies (Individual Insurance and Individual Annuities)
Nine months ended
December 31, 2013

Nine months ended
December 31, 2014
Changes(%, YoY)

Amount of surrender and lapse(100 millions of yen)

Surrender and lapse ratio (%)

11,57910,873

93.9

4.15

4.00

(0.15)

Notes: 1. The amount of lapse is not offset by the amount of reinstatement which was once lapsed.
2. The column of "Changes" of surrender and lapse ratio are increase-decrease points over year.

1

Fukoku Mutual Life Insurance Company

(2) Annualized Premiums(i) Policies in Force(100 millions of yen except percentage)

As ofMarch 31, 2014

As ofDecember 31, 2014
Changes(%, Pre-FYE)

Individual insurance

2,750

2,737

99.5

Individual annuities

1,326

1,324

99.9

Total

4,077

4,062

99.6

1,061

1,066

100.5

Medical coverage and living benefits(ii) New Policies(100 millions of yen except percentage)

Nine months ended
December 31, 2013

Nine months ended
December 31, 2014
Changes(%, Pre-FYE)

Individual insurance

146

141

96.6

Individual annuities

17

21

119.1

Total

164

162

99.1

59

53

90.1

Medical coverage and living benefits

Notes: 1. Annualized premiums are calculated by using coefficients based on the premium payment method. (For single premium
contracts, the amount is calculated by dividing the premium by the coverage period.)
2. Figures for medical coverage and living benefits represent portion of annualized premium corresponding to the medical
benefits (hospitalization benefits and surgery benefits, etc.), living benefits (nursing care benefits, etc.) and premium
waiver benefits, in which disability cause is excluded but causes such as specific illness are included.
3. New policies include net increase by conversion.

(3) Selected Items of Statements of Operations(100 millions of yen except percentage)

Nine months ended
December 31, 2013

Nine months ended
December 31, 2014
Changes(%, Pre-FYE)

Premium and other income

4,537

4,281

94.3

Investment income

1,627

1,638

100.6

Claims and other payments

3,806

3,699

97.2

Investment expenses

437

415

95.0

Ordinary profits

788

825

104.7

(4) Total Assets(100 millions of yen except percentage)

As ofMarch 31, 2014

As ofDecember 31, 2014

Changes(%, Pre-FYE)

Total assets

62,1472

65,055

104.7

Fukoku Mutual Life Insurance Company

2. Investment Results of General Account Assets(1) Asset Composition(Millions of yen)
As ofMarch 31, 2014
Amount

As ofDecember 31, 2014

Percentage

AmountPercentage

Cash, deposits, call loans

183,333

3.0

124,421

1.9

Monetary claims bought

1,011

0.0

884

0.0

Money held in trust

31,981

0.5

34,381

0.5

4,798,502

78.2

5,194,468

80.9

2,876,176

46.9

2,901,958

45.2

Securities
Domestic bonds
Domestic stocks

482,308

7.9

587,439

9.1

Foreign securities

1,365,396

22.3

1,624,836

25.3

Foreign bonds

1,109,910

18.1

1,324,911

20.6

255,485

4.2

299,924

4.7

74,621

1.2

80,233

1.2
12.0

Foreign stocks and other securities
Other securities
Loans

835,860

13.6

772,684

Policy loans

65,206

1.1

63,4681.0

Ordinary loans

770,65412.6

709,216

11.0

Real estate

228,183

3.7

224,694

3.5

Others56,9030.9

71,017

1.1

Allowance for possible loan losses(2,281)( 0.0)(2,047)( 0.0)

6,133,495

100.0

6,420,505

100.0

1,302,072

21.2

1,612,789

25.1

Total
Foreign currency denominated assets

3

Fukoku Mutual Life Insurance Company

(2) Fair Value Information on Securities (with fair value, other than trading securities)(Millions of yen)

As of March 31, 2014

As of December 31, 2014

Gains/losses

Book value

Fair value

843,433

922,909

79,476

79,476

Domestic bonds

768,744845,557

76,813Foreign bonds

74,68977,352

Monetary claims bought－

Negotiable certificate of deposits
OthersGains/losses

Book value

Fair value－

819,324

942,279

122,955

122,955－

76,813－

742,525

862,637

120,112120,112

－

2,662

2,662

－

76,79979,642

2,843

2,843

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

1,210,016

1,294,587

84,57084,798227

1,215,275

1,359,352

144,077

144,0770

Domestic bonds

1,190,715

1,275,012

84,29784,522224

1,181,676

1,325,473

143,797

143,7970Foreign bonds

19,301

19,575

273

276

2

33,59833,878

280

280

－

1,393

1,096

(296)

－

296

1,433

1,275

(157)

5

162
1,738

Gains
Held-to-maturity debt securities

Policy-reserve-matching bonds

Investments in subsidiaries and affiliates
Available-for-sale securities

Losses

Gains

Losses

2,046,003

2,421,417

375,414379,801

4,387

2,203,027

2,797,312

594,285

596,024

Domestic bonds

815,104

886,899

71,794

72,132

337

842,018

938,758

96,73996,956216

Domestic stocks

269,792

439,094

169,301

171,7692,467

278,270

544,363

266,092

266,687594

Foreign securities

905,773

1,028,769

122,996

124,501

1,505

1,030,736

1,243,426

212,690

213,581890

Foreign bonds

690,428

774,677

84,24985,3981,149

804,075

944,935

140,860

141,645785

Foreign stocks and other securities

215,345

254,092

38,746

39,102355

226,661

298,491

71,83071,935105

Other securities

55,332

66,653

11,321

11,39776

52,00170,764

18,762

18,79835

Money held in trust

－

－

－

－

－

－

－

－

－

－

Monetary claims bought

－

－

－

－

－

－

－

－

－

－

Negotiable certificate of deposits

－

－

－

－

－

－

－

－

－

－

Others

－

－

－

－

－

－

－

－

－

－

4,100,846

4,640,011

539,164544,075

4,911

4,239,060

5,100,221

861,160

863,061

1,901

Domestic bonds

2,774,564

3,007,469

232,904

233,467562

2,766,220

3,126,869

360,648

360,865

216

Domestic stocks

269,792

439,094

169,301

171,7692,467

278,270

544,363

266,092

266,687594

Foreign securities

1,001,157

1,126,794

125,636

127,440

1,804

1,142,567

1,358,223

215,656

216,709

1,053

Foreign bonds

784,419

871,604

87,18588,337

1,152

914,473

1,058,456

143,983

144,768

785

Foreign stocks and other securities

216,738

255,189

38,45039,102652

228,094

299,767

71,672

71,940268

Total

Other securities

55,332

66,653

11,321

11,39776

52,00170,764

18,762

18,79835

Money held in trust

－

－

－

－

－

－

－

－

－

－

Monetary claims bought

－

－

－

－

－

－

－

－

－

－

Negotiable certificate of deposits

－

－

－

－

－

－

－

－

－

－

Others

－

－

－

－

－

－

－

－

－

－

Note: The table above includes assets which are considered appropriate to deem as securities under the Financial Instruments
and Exchange Law.
* Book value of securities without fair value are as follows:(Millions of yen)
As ofDecember 31, 2014

As ofMarch 31, 2014
Held-to-maturity debt securities－－

Unlisted foreign bonds－－

Others－－

Policy-reserve-matching bonds－－

Investments in subsidiaries and affiliates

35,56035,560Available-for-sale securities

15,62016,984

7,653

7,515

Unlisted foreign stocks (except over-the-counter stocks)－－

Unlisted foreign bonds

－

－

7,967

9,468

51,18152,545

Unlisted domestic stocks (except over-the-counter stocks)

OthersTotal

4

Fukoku Mutual Life Insurance Company

(3) Fair Value Information on Money Held in Trust(Millions of yen)
As of March 31, 2014
Carrying
value onbalancesheetsMoney held in trust

31,981

As of December 31, 2014

Gains/losses
Fair value

31,981

Gains－

Losses－－Carrying
value onbalancesheetsFair value

34,381

34,381

Gains/losses
Gains－

Losses－－* Money held in trust for trading purpose(Millions of yen)
As of March 31, 2014
Net valuation gains/losses
included in the statementsof operations

Carrying value onbalance sheets
Money held in trust
for trading purpose

As of December 31, 2014

30,981

Net valuation gains/losses
included in the statementsof operations

Carrying value onbalance sheets
33,381－576* Money held in trust classified as held-to-maturity, policy-reserve-matching and available-for-sale(Millions of yen)
As of March 31, 2014
Book value Fair value

As of December 31, 2014

Gains/losses
Gains

LossesBook
value

Fair value

Gains/losses
Gains

LossesMoney held in trust
for held-to-maturity

－

－

－

－

－

－

－

－

－

－

Money held in trust
for policy-reserve-matching

－

－

－

－

－

－

－

－

－

－

Money held in trust
for available-for-sale

－

－

－

－

－

－

－

－

－

－

(reference) Fair Value of Real Estate ( Land and Leaseholds)(millions of yen)
As of March 31, 2014
Carrying value on
the balance sheets
132,914

As of December 31, 2014
Gains(losses)

Fair value
223,067

Carrying value on
the balance sheets
90,152

132,570

Fair value
223,388

Gains(losses)
90,818Notes: 1. As of December 31, 2014, fair value is based on the appraisal value by the real-estate appraiser, the appraisal value for property tax
and the road rate as of January 1, 2014.
2. As of March 31, 2014, fair value is based on the appraisal value by the real-estate appraiser, the appraisal value for property tax as ofJanuary 1, 2014 and the road rate as of January 1, 2013.

5

Fukoku Mutual Life Insurance Company

3. Non-consolidated Balance Sheets(Millions of yen)
As of March 31, 2014

As of December 31, 2014

Assets:Cash and deposits

34,76823,379Call loans

148,700

101,100

Monetary claims bought

1,011

884

Money held in trust

31,981

34,381

Securities

4,877,141

5,277,418[2,097,463][2,097,012][Local government bonds][157,102][159,854][Corporate bonds][654,161][677,417][Stocks][504,442][612,977][1,389,208][1,649,819]

835,860

772,684[Government bonds][Foreign securities]
Loans
Policy loans

65,206

63,468

Ordinary loans

770,654709,216

Tangible fixed assets

232,115

228,470

Intangible fixed assets

10,827

10,537

Reinsurance receivables
Other assets
Allowance for possible loan losses
Total assets

78

197

44,59258,592(2,281)(2,047)

6,214,796

6,505,597

As of March 31, 2014

As of December 31, 2014

Liabilities:
Policy reserves

5,412,622

Reserve for outstanding claims
Policy reserve
Reserve for dividends to policyholders
Reinsurance payables
Subordinated bonds
Other liabilities

5,445,558

23,067

19,234

5,338,547

5,366,198

51,007

60,12598

122

122,346

123,82253,52464,273

Corporate income tax payable

11,945

6,927

Asset retirement obligations

2,951

2,994

Other liabilities

38,62854,351

Reserve for employees' retirement benefits

43,112

46,829Reserve for price fluctuation of securities

44,01645,900

Deferred tax liabilities

29,245

95,520

Deferred tax liabilities for revaluation reserve for land

15,92915,8595,720,895

5,837,885

Foundation funds

35,00030,000

Accumulated foundation funds redeemed

71,00086,000Total liabilities
Net assets:

Reserve for revaluation
Surplus
Legal reserve for future losses

112

112

124,780

137,142

2,485

2,582

122,294

134,560

Reserve for redemption of foundation funds

18,00012,000Reserve for dividend allowances

3,895

3,895

Accumulated fund for price fluctuation

21,00031,000Reserve for advanced depreciation of real estate for tax purpose

3,969

262

Other surplus

Other reserves

767

767

74,662

86,635

Total foundation funds, surplus and others

230,892

253,254

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

259,861

411,364

Unappropriated surplus

Deferred valuation gains (losses) under hedge accounting

2

1

3,144

3,090

Total valuation and translation adjustments

263,008

414,456

Total net assets

493,900

667,7116,214,796

6,505,597

Revaluation reserve for land, net of tax

Total liabilities and net assets

6

Fukoku Mutual Life Insurance Company

4. Non-consolidated Statements of Operations(Millions of yen)
Nine months ended

Nine months ended

December 31, 2013

December 31, 2014

Premium and other income

453,775

428,121[Premium income][453,713][427,881]

162,778

163,824[Interest, dividends and other income][91,396][97,652][Gains from money held in trust, net]

[1,096][2,429]Ordinary revenues:

Investment income[Gains from trading securities, net]

[22,199][42,875][Gains on sales of securities][32,422][7,683][Gains from separate accounts, net]

[11,854][9,487]

11,212

10,442[3,119][3,833]627,766

602,387

Other ordinary revenues[Reversal of reserve for outstanding claims]
Total ordinary revenues
Ordinary expenditures:
Claims and other payments[Claims]

380,686

369,988[112,220][88,472][115,867][Annuities][99,261][Benefits][90,894][87,718][Surrenders][58,900][58,014][Other payments][19,122][19,586]

45,135

27,69545,07927,651

56

44

Investment expenses

43,77041,584[Interest expenses][2,562][3,265][Losses on sales of securities][5,747]

[451]

[285]

[99]

Provision for policy reserve and others
Provision for policy reserve
Interest on accumulated dividends to policyholders[Losses on valuation of securities][27,486][30,565]

Operating expenses[Losses from derivative instruments, net]

64,26164,485

Other ordinary expenditures

15,06016,045

Total ordinary expenditures

548,915

519,799

Ordinary profits

78,85082,588

2,004

6

2,004

6

Extraordinary gains:
Gains on disposal of fixed assets
Total extraordinary gains
Extraordinary losses:
Losses on disposal of fixed assets

7,231

71

Impairment losses

1,608

318

Provision for reserve for price fluctuation of securities

1,795

1,884

Total extraordinary losses

10,634

2,274

Surplus before income taxes

70,22080,321

17,77817,194

Income taxes:
Current
Deferred
Total income taxes
Net surplus for the period

7(1,101)

302

16,676

17,49753,54362,823

Fukoku Mutual Life Insurance Company

Notes to the Non-consolidated Financial Statements
I. Presentation of the Non-consolidated Financial Statements
1. Basis of Presentation
The accompanying non-consolidated financial statements have been prepared from the accounts
maintained by Fukoku Mutual Life Insurance Company (the “Company”) in accordance with theprovisions set forth in the Insurance Business Law of Japan and its related rules and regulations and in
conformity with accounting principles generally accepted in Japan, which are different in certain
respects from accounting principles generally accepted in countries and jurisdictions other than Japan.
Amounts of less than one million yen have been eliminated. As a result, total in yen shown herein
do not necessarily agree with the sum of the individual amounts.

II. Notes to Balance Sheets
1. Accounting Changes and Error Corrections and Its Implementation
In accordance with “Accounting Standard for Retirement Benefits” (ASBJ Statement No. 26, May 17,2012) and “Guidance on Accounting Standard for Retirement Benefits” (ASBJ Guidance No. 25, May
17, 2012), effective from the three months ended June 30, 2014, the Company changed its method forallocation of projected retirement benefits from the straight-line basis to the benefit formula basis. In
addition, the Company changed its method for determining the discount rate from the discount rate
based on the average period until the estimated payment date of retirement benefits to the method thatuses the single weighted average discount rate reflecting the estimated payment period for retirement
benefits and the estimated amount for each period.
As a result of these changes, compared with the previous method, at the beginning of the ninemonths ended December 31, 2014, surplus decreased by ¥3,297 million. Ordinary profits and surplus
before income taxes for the nine months ended December 31, 2014 increased by ¥29 million.
2. Securities Lent under Lending Agreements
The amount of securities lent under lending agreements was ¥51,437 million as of December 31, 2014.
3. Reserve for Dividends to Policyholders
Changes in reserve for dividends to policyholders for the nine months ended December 31, 2014 wereas follows:(Millions of yen)

Balance at the beginning of current period ･･････････････････････
Transfer from surplus in previous fiscal year ････････････････････
Dividends paid in the current period ･･･････････････････････････････････････････････････････････････････････････
Increase in interest････････････････････････････
Balance at the end of current period¥ 51,007
31,595(22,522)44¥ 60,125

4. Additional Foundation Funds
The Company raised additional foundation funds of ¥10,000 million during the nine months ended
December 31, 2014 in accordance with Article 60 of the Insurance Business Law.

5. Redemption of Foundation Funds
In the nine months ended December 31, 2014, in connection with the redemption of foundation fundsof ¥15,000 million, the Company reversed the reserve for redemption of foundation funds and provided
the equivalent amount for accumulated foundation funds redeemed in accordance with Article 56 of the
Insurance Business Law.

8

Fukoku Mutual Life Insurance Company

5. Breakdown of Ordinary Profits (Fundamental Profit)
Nine months ended
December 31, 2013

(Millions of yen)
Nine months ended
December 31, 2014

A

60,08664,350Capital gains
Gains from money held in trust, net
Gains from trading securities, net
Gains on sales of securities
Gains from derivative instruments, net
Foreign exchange gains, net
Other capital gains
Capital losses
Losses from money held in trust, net
Losses from trading securities, net
Losses on sales of securities
Losses on valuation of securities
Losses from derivative instruments, net
Foreign exchange losses, net
Other capital losses
Net capital gains (losses)
B
Fundamental profit plus net capital gains (losses)
A+B
Non-recurring gains
Reinsurance income
Reversal of contingency reserve
Reversal for specific allowannce for possible loan losses
Other non-recurring gains
Non-recurring losses
Reinsurance premiums
Provision for contingency reserve
Provision for specific allowance for possible loan losses
Allowance for specified overseas loans
Write-off of loans
Other non-recurring losses
Non-recurring gains (losses)
C
Ordinary profits
A+B+C

52,551934
15,62732,422

49,373
2,283
35,972
7,683
－
3,435
－
31,116－－451
99
30,565－－
18,25782,607
15
－
－
15
－
34
－
34
－
－
－
－
(19)
82,588Fundamental profit

－
3,566
－
33,519
－
－
5,747
285
27,486－－
19,031
79,117
－
－
－
－
－
266
－
17
249
－
－
－
(266)
78,850Notes: 1. The following amounts in respect of gains / losses from money held in trust have been excluded from capital gains / losses andincluded in fundamental profit due to their income nature (being interest and dividend income): ¥162 million in respect of the ninemonths ended December 31, 2013 and ¥146 million in respect of the nine months ended December 31, 2014.
Notes: 2. The following amounts in respect of gains / losses from trading securities have been excluded from capital gains / losses andincluded in fundamental profit due to the their income nature (being interest and dividend income): ¥6,571 million in respect of
the nine months ended December 31, 2013 and ¥6,903 million in respect of the nine months ended December 31, 2014.

9

Fukoku Mutual Life Insurance Company

6. Solvency Margin Ratio(Millions of yen)

As ofMarch 31, 2014
Total solvency margin

(A)

As of
December 31, 2014

1,109,068

1,361,330

Foundation funds and surplus

196,835

227,646

Reserve for price fluctuation of securities

44,01645,900Contingency reserve

110,291

110,326

1,594

1,400

Net unrealized gains on available-for-sale securities x 90%

337,872

534,857

Net unrealized gains on real estate x 85%

90,71994,255

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

193,088

196,186

Qualifying subordinated debt

122,346

123,822－－

Deductible items(19,000)(19,000)

Others31,30345,933201,663

231,510

Allowance for possible loan losses

The amount of "excess amount of policy reserve based on full-time Zillmer method" and"qualifying 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

26,37125,751

3rd sector insurance risk

R8

9,631

9,598

Assumed investment yield risk

R2

35,88435,821Minimum guarantee risk

R7

0

0

Investment risk

R3

157,866

187,732

Business risk

R4

4,595

5,178

1,099.9%

1,176.0%

Solvency margin ratio(A)(1/2) x (B)x 100

Notes: 1.The figures above as of March 31, 2014, are calculated based on Articles 86 and 87 of the Enforcement Regulations of
the Insurance Business Law, as well as Ministry of Finance Ordinance No. 50, 1996. Figures as of December 31, 2014,
are calculated pursuant to these standards.
2. "Deductible items" represent the capital increase to the subsidiary, Fukokushinrai Life Insurance Co., Ltd.
3. "Minimum guarantee risk" is calculated by standard method.

10

Fukoku Mutual Life Insurance Company

7. Status of Separate Account(1) Separate Account Assets by Products
As of March 31, 2014

(Millions of yen)
As of December 31, 2014

AmountAmountIndividual variable insurance－－

Individual variable annuities

272

155

Group annuities

82,40886,277

Total

82,68086,432(2) Policies in Force(i) Individual Variable Insurance (Separate Account)
The Company has not sold the individual variable insurance.
(ii) Individual Variable Annuities (Separate Account)
As of March 31, 2014
NumberAmount(Millions of yen)
As of December 31, 2014
NumberAmountIndividual variable annuities

81

265

46

146

Total

81

265

46

146

11

Fukoku Mutual Life Insurance Company

8. Status of the Company, Subsidiaries and Affiliates(1) Selected Financial Data

(Millions of yen)
Nine months ended
December 31, 2013

Nine months ended
December 31, 2014

Ordinary revenues

716,530

732,541

Ordinary profits

82,60586,751

Net surplus for the period

55,11264,706Comprehensive income

118,187

220,736

As ofMarch 31, 2014

As ofDecember 31, 2014

Total assets

7,817,668

8,189,362

Solvency margin ratio

1,120.0%

1,202.2%(2) Scope of consolidation and application of equity method
Number of consolidated subsidiaries: 5
Number of unconsolidated subsidiaries accounted for under the equity method: 0
Number of affiliates accounted for under the equity method: 0

12

Fukoku Mutual Life Insurance Company

(3) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2014

As of December 31, 2014

Assets:Cash and deposits

91,021

83,900Call loans

148,700

101,100

Monetary claims bought

1,011

884

Money held in trust

31,981

34,381

Securities

6,406,927

6,884,636

Loans

839,244776,125

Tangible fixed assets

232,492

228,813

Intangible fixed assets

16,36915,197

Agency receivables

1

1

Reinsurance receivables

94

197
66,068Other assets

51,065

Deferred tax assets

1,041

102

Allowance for possible loan losses(2,281)(2,047)

7,817,668

8,189,362

Total assets

As of March 31, 2014

Liabilities:
Policy reserves

As of December 31, 2014

6,995,343

Reserve for outstanding claims
Policy reserve
Reserve for dividends to policyholders
Reserve for dividends to policyholders (subsidiary)
Agency payables
Reinsurance payables

7,101,727

25,17020,9806,918,429

7,019,953

51,007

60,125

735

667

339

316

113

137

Subordinated bonds

122,346

123,822

Other liabilities

57,036

68,334

Net defined benefit liabilities

48,84052,042

Reserve for price fluctuation of securities

50,32552,454

Deferred tax liabilities
Deferred tax liabilities for revaluation reserve for land

27,502
15,92994,566

Total liabilities

7,317,778

7,509,261

Net assets:
Foundation funds

35,00030,000

Accumulated foundation funds redeemed

71,00086,000Reserve for revaluation

15,859112

112

Consolidated surplus

126,584

140,830

Total foundation funds, surplus and others

232,696

256,942Net unrealized gains (losses) on available-for-sale securities, net of tax
Deferred valuation gains (losses) under hedge accounting

263,161

417,991

2

1

Revaluation reserve for land, net of tax

3,144

3,090

Foreign currency translation adjustment

(261)

(202)

(3,918)(3,554)

262,127

417,326

Accumulated remeasurements of defined benefit plans
Total accumulated other comprehensive income
Minority interests

5,066

5,831

Total net assets

499,890

680,100

7,817,668

8,189,362

Total liabilities and net assets

13

Fukoku Mutual Life Insurance Company

(4) Consolidated Statements of Operations and Comprehensive Income[Consolidated Statements of Operations](Millions of yen)
Nine months ended
December 31, 2013

Ordinary revenues:
Premium and other income
Investment income[Interest, dividends and other income][Gains from money held in trust, net]
[Gains from trading securities, net]
[Gains on sales of securities][Gains from separate accounts, net]
Other ordinary revenues[Reversal of reserve for outstanding claims]
Total ordinary revenues
Ordinary expenditures:
Claims and other payments[Claims][Annuities][Benefits][Surrenders][Other payments]
Provision for policy reserve and others
Provision for policy reserve
Interest on accumulated dividends to policyholders
Interest on accumulated dividends to policyholders (subsidiary)
Investment expenses[Interest expenses][Losses on sales of securities][Losses on valuation of securities][Losses from derivative instruments, net]
Operating expenses
Other ordinary expenditures
Total ordinary expenditures
Ordinary profits
Extraordinary gains:
Gains on disposal of fixed assets
Total extraordinary gains
Extraordinary losses:
Losses on disposal of fixed assets
Impairment losses
Provision for reserve for price fluctuation of securities
Total extraordinary losses
Provision for reserve for dividends to policyholders (subsidiary)
Surplus before income taxes
Income taxes:
Current
Deferred
Total income taxes
Net surplus before minority interests
Minority interests
Net surplus for the period

14

Nine months ended
December 31, 2014

523,460
180,912[108,372][1,096][22,199][33,579][11,854]
12,157[3,535]716,530

537,907183,296[115,046][2,429][42,875][9,771][9,487]
11,336[4,190]732,541

414,830[114,411][99,608][97,241][83,901][19,260]
88,81188,75456
043,027[2,579][5,747][285][27,486]
70,776
16,479633,925
82,605413,203[91,714][116,440][94,839][90,088][19,671]
101,569
101,52444
040,749[3,276][451][99][30,565]
72,303
17,963645,789
86,751

2,004
2,004

6
6

7,231
1,608
2,025
10,865370
73,373

72
318
2,129
2,520
392
83,844

19,079(1,091)
17,98855,385272
55,112

18,628196
18,82565,019312
64,706

Fukoku Mutual Life Insurance Company

Consolidated Statements of Operations and Comprehensive Income (Continued)[Consolidated Statements of Comprehensive Income](Millions of yen)
Nine months ended
December 31, 2013

Net surplus before minority interests
Other comprehensive income
Net unrealized gains (losses) on available-for-sale securities, net of tax

Deferred valuation gains (losses) under hedge accounting
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Comprehensive income
Comprehensive income attributable to parent company
Comprehensive income attributable to minority interests

15

55,38562,802
62,639(47)
210－
118,187
118,063
124

Nune months ended
December 31, 2014

65,019155,717
155,295(1)
58
364
220,736
219,959
777

Fukoku Mutual Life Insurance Company

Notes to the Consolidated Financial Statements
I. Presentation of the Consolidated Financial Statements
1. Basis of Presentation
The accompanying consolidated financial statements have been prepared from the accounts
maintained by Fukoku Mutual Life Insurance Company (the “Company”) and its consolidated
subsidiaries in accordance with the provisions set forth in the Insurance Business Law of Japan and its
related rules and regulations and in conformity with accounting principles generally accepted in Japan,
which are different in certain respects from accounting principles generally accepted in countries andjurisdictions other than Japan.
Amounts of less than one million yen have been eliminated. As a result, total in yen shown herein
do not necessarily agree with the sum of the individual amounts.

II. Notes to Balance Sheets
1. Accounting Changes and Error Corrections and Its Implementation
In accordance with "Accounting Standard for Retirement Benefits” (ASBJ Statement No. 26, May 17,2012) and “Guidance on Accounting Standard for Retirement Benefits” (ASBJ Guidance No. 25, May
17, 2012), effective from the three months ended June 30, 2014, the Company changed its method forallocation of projected retirement benefits from the straight-line basis to the benefit formula basis. In
addition, the Company changed its method for determining the discount rate from the discount rate
based on the average period until the estimated payment date of retirement benefits to the method thatuses the single weighted average discount rate reflecting the estimated payment period for retirement
benefits and the estimated amount for each period.
As a result of these changes, compared with the previous method, at the beginning of the ninemonths ended December 31, 2014, surplus decreased by ¥3,297 million. Ordinary profits and surplus
before income taxes for the nine months ended December 31, 2014 increased by ¥29 million.
2. Securities Lent under Lending Agreements
The amount of securities lent under lending agreements was ¥51,437 million as of December 31, 2014.
3. Reserve for Dividends to Policyholders
Changes in reserve for dividends to policyholders for the nine months ended December 31, 2014 wereas follows:(Millions of yen)

Balance at the beginning of current period ･･････････････････････
Transfer from surplus in previous fiscal year ････････････････････
Dividends paid in the current period ･･･････････････････････････････････････････････････････････････････････････
Increase in interest････････････････････････････
Balance at the end of current period¥ 51,007
31,595(22,522)44¥ 60,125

4. Reserve for Dividends to Policyholders (Fukokushinrai Life Insurance Company, Ltd.)
Changes in reserve for dividends to policyholders for the nine months ended December 31, 2014 wereas follows:(Millions of yen)

Balance at the beginning of current period
Dividends paid in the current period ･･･････････････････････････････････････････････････････････････････････････
Increase in interest････････････
Provision for reserve for dividends to policyholders････････････････････････････
Balance at the end of current period･･････････････････････

16

¥ 735
(460)
0
392
¥ 667

Fukoku Mutual Life Insurance Company

5. Additional Foundation Funds
The Company raised additional foundation funds of ¥10,000 million during the nine months ended
December 31, 2014 in accordance with Article 60 of the Insurance Business Law.

6. Redemption of Foundation Funds
In the nine months ended December 31, 2014, in connection with the redemption of foundation fundsof ¥15,000 million, the Company reversed the reserve for redemption of foundation funds and provided
the equivalent amount for accumulated foundation funds redeemed in accordance with Article 56 of the
Insurance Business Law.

III. Notes to Statements of Operations
1. Depreciation and Amortization of Goodwill
For the nine months ended December 31, 2014, the total amount of depreciation and depreciation ofreal estate for rent and other assets was ¥8,886 million and the amount of amortization of goodwill was¥572 million.

17

Fukoku Mutual Life Insurance Company

(5) Consolidated Solvency Margin Ratio(Millions of yen)

As of
As of
March 31, 2014 December 31, 2014
Total solvency margin(A)

1,143,749

1,406,291

Foundation funds and surplus

201,167

235,241

Reserve for price fluctuation of securities

50,32552,454

Contingency reserve

112,094

112,237

－

－

1,594

1,400

Net unrealized gains on available - for - sale securities x 90%

343,140

545,056

Net unrealized gains on real estate x 85%

90,71994,255Sum of unrecognized actuarial differences and unrecognized prior service cost

(5,661)(5,134)

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

195,290

198,434

Qualifying subordinated debt

Catastrophe loss reserve
Allowance for possible loan losses

122,346

123,822

The amount of "excess amount of policy reserve based on full-time Zillmer method" and "qualifying
subordinated debt" excluded from the calculation of solvency margin－－

Deductible items－－

32,732

48,521

204,232

233,939

OthersTotal amount of risk

( ( R1  R5  R8  R9 ) 2  ( R 2  R3  R7 ) 2  R 4  R6
2

2

(B)

Insurance risk

R1

26,98326,369General insurance risk

R5

－

－

Catastrophe risk

R6

－

－

3rd sector insurance risk

R8

9,748

9,713

Small amount and short-term insurance risk

R9

－

－

Assumed investment yield risk

R236,26036,204

Minimum guarantee risk

R7

0

0

Investment risk

R3

159,903

189,632

Business risk

R4

4,657

5,238

1,120.0%

1,202.2%

Solvency margin ratio(A)(1/2) x (B)x 100

Notes: 1. The figures above as of March 31, 2014, are calculated based on Article 86 Paragraph 2 and Article 88 of
the Enforcement Regulations of the Insurance Business Law, as well as Financial Services Agency OrdinanceNo. 23, 2011. Figures as of December 31, 2014, are calculated pursuant to these standards.
Notes: 2. "Minimum guarantee risk" is calculated by standard method.

18

Fukoku Mutual Life Insurance Company