May 27, 2010

Financial Results for the Year Ended March 31, 2010

Fukoku Mutual Life Insurance Company (President: Tomofumi Akiyama) announces financial results
for the year ended March 31, 2010.

[Contents]
1. Business Highlights…………………

P.1

2. Policies in Force by Coverage Type…………………

P.3

3. Investment Activities of General Account Assets…………………

P.4

4. Non-consolidated Balance Sheets…………………

P.12

5. Non-consolidated Statements of Operations…………………

P.13

6. Breakdown of Ordinary Profits (Fundamental Profit)…………………

P.24

7. Non-consolidated Statements of Changes in Net Assets…………………

P.25

8. Non-consolidated Statements of Surplus…………………

P.27

9. Disclosed Claims Based on Categories of Obligors…………………

P.28

10. Risk-monitored Loans…………………

P.29

11. Solvency Margin Ratio…………………

P.30

12. Status of Separate Account…………………

P.31

Attached: Supplementary Materials for the Year Ended March 31, 2010

Financial Summary for the Year Ended March 31, 2010
1. Business Highlights(1) Policies in Force, New Policies and Surrendered and Lapsed Policies.
(i) Policies in Force
As of March 31, 2009
Number of policies

As of March 31, 2010

AmountNumber of policies

Amount(Thousands)

Changes(%, YoY)(100 millionsof yen)Changes(%, YoY)(Thousands)

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

Individual insurance

2,976

98.3

302,327

95.2

2,965

99.6

285,159

94.3

Individual annuities

741

103.3

29,864

101.6

748

101.0

29,802

99.8

3,717

99.3

332,191

95.8

3,714

99.9

314,96294.8

Group insurance−−

153,365

101.3−− 159,611

104.1

Group annuities−−

19,975

98.7

−

−

100.2

Subtotal

20,016

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

(ii) New Policies
Total
Year ended
March 31, 2009

New business

Number of policies

AmountAmount

Net increase by
conversion
Amount(Thousands)

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

Individual insurance

325

87.6

16,221

76.7

16,259

80.9

(38)

−

Individual annuities

56

105.3

1,909

106.6

1,926

106.5

(17)

−

Subtotal

381

89.8

18,13079.1

18,186

83.0

(55)

−

Group insurance

−

−

1,063

167.4

1,063

167.4

−

−

Group annuities

−

−

0

0.9

0

0.9

−

−

Total
Year ended
March 31, 2010

New business

Number of policies

AmountAmount

Net increase by
conversion
Amount(Thousands)

Changes(%, YoY)(100 millionsof yen)Changes(%, YoY)(100 millionsof yen)Changes(%, YoY)(100 millionsof yen)Individual insurance

438

134.7

12,073

74.4

15,432

94.9(3,358)−

Individual annuities

39

69.1

1,262

66.1

1,290

67.0

(27)

−

477

125.0

13,33673.6

16,72292.0(3,386)−

Group insurance

−

−

514

48.4

514

48.4

−

−

Group annuities

−

−

0

109.1

0

109.1

−

−

Subtotal

Changes(%, YoY)

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 held at
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)
Year ended March 31, 2009

Year ended March 31, 2010

Changes(%, YoY)

Amount of surrender and ｌapses(100 millions of yen)
Surrender and lapse ratio(%)

Changes(%, YoY)

20,32897.4

19,069

93.8

5.86

0.01

5.74

(0.12)

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 of March 31, 2009

As of March 31, 2010

Changes(%, YoY)

Changes(%, YoY)

Individual insurance

3,057

94.5

2,937

96.1

Individual annuities

1,233

103.2

1,252

101.5

Total

4,290

96.8

4,189

97.6

987

100.8

1,007

102.1

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

Year ended March 31, 2009

Year ended March 31, 2010

Changes(%, YoY)

Changes(%, YoY)

Individual insurance

194

83.9

193

99.9

Individual annuities

82

90.0

58

71.0

Total

276

85.6

252

91.2

74

85.6

87

117.1

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.)
Notes: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, inwhich disability cause is excluded but causes such as specific illness are included.
Notes:3. Amounts of new policies include net increase by conversion.

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

Year ended March 31, 2009

Year ended March 31, 2010

Changes(%, YoY)

Changes(%, YoY)

Premium and other income

6,467

87.8

6,237

96.5

Investment income

1,667

114.0

1,477

88.6

Claims and other payments

5,965

99.1

5,642

94.6

Investment expenses

1,694

284.3

702

41.5

21

3.7

329

1,522.7

Ordinary profits(4) Statements of Surplus(100 millions of yen except percentage)

Year ended March 31, 2009

Year ended March 31, 2010

Changes(%, YoY)

Changes(%, YoY)

Unappropriated surplus

566

101.8

540

95.4

Reserve for dividends to policyholders

178

56.0

195

109.2

Net surplus

109

100.0

59

54.6

Unappropriated surplus carried forward

278

216.3

286

102.6

Note: Unappropriated surplus for the years ended March 31, 2009 and 2010 included reversal of voluntary surplus reserve of ¥7 millionand ¥7 million, respectively.

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

As of March 31, 2009

As of March 31, 2010

Changes(%, YoY)

Total assets

55,144-2-

96.3

Changes(%, YoY)

56,131

101.8

Fukoku Mutual Life Insurance Company

2. Policies in Force by Coverage Type[As of March 31, 2010](Thousands of number, 100 millions of yen)

Individual insurance Individual annuities

Group insurance

Total

NumberAmountNumberAmountNumberAmountNumberAmountIllness and accident

1,965

224,267−

1,111

18,795

159,582

20,760384,961

Accident

1,536

37,127

293

815

2,740

7,226

4,570

45,169

−

−

−

−

0

7

0

7

1,000

60,891748

28,691

8

29

1,757

89,612

Accident

1,493

87

−

−

1,198

3

2,692

91

Illness

1,489

87

−

−

−

−

1,489

87

Others

1,983

102

−

−

0

0

1,983

102

Injury coverage

1,482

−

4

−

2,197

−

3,684

−

Surgical coverage

3,360

−

−

−

−

−

3,360

−

Death coverage

OthersSurvival coverage
Hospitalization coverage(Thousands of number, 100 millions of yen)Group annuities

Survival coverage

Worker's asset formation
insurance and annuities

Total

NumberAmountNumberAmountNumberAmount11,42620,01619354

11,445

20,370(Thousands of number, millions of yen)(Thousands of number, millions of yen)Group disability
insurance

Medical careinsurance

Hospitalization coverage

NumberAmount417

138

Disability coverage

NumberAmount855

Notes: 1. Number of group insurance, group annuities, worker's asset formation insurance and annuities, medical care insurance
and group disability insurance show the number of insured.
2. Amounts in survival coverage for individual insurance and group insurance (other than annuity rider) show the sum ofsurvival benefits, survival claims and nursing care benefits. Amounts in survival coverage for individual annuities, annuity
rider for group insurance, worker's asset formation annuities (other than worker's asset formation funding annuities) show
the sum of (a) the funds to be held at the time annuity payments are to commence for an annuity for which annuity
payments have not yet commenced, and (b) the amount of policy reserve for an annuity for which payments havecommenced. Amounts in survival coverage for group annuities, worker's asset formation insurance and worker's asset
formation funding annuities show the amount of outstanding policy reserve.
3. Amounts in hospitalization coverage show daily hospitalization benefits.
4. Amount in hospitalization coverage for medical care insurance shows daily hospitalization benefits due to illness.
5. Amount for group disability insurance shows monthly disability benefits.

-3-

Fukoku Mutual Life Insurance Company

3. Investment Activities of General Account Assets(1) Asset Composition
As of March 31, 2009
AmountPercentage(Millions of yen)
As of March 31, 2010
Percentage

AmountCash, deposits, call loans

206,849

Monetary claims bought

2,055

0.0

1,752

0.0

Money held in trust

33,0530.6

32,9020.6

3,513,882

65.0

3,710,831

67.2

Domestic bonds

2,468,826

45.7

2,565,977

46.5

Domestic stocks

418,8897.8

473,218

8.6

Foreign securities

574,604

10.6

622,073

11.3

Foreign bonds

403,391

7.5

446,913

8.1

Foreign stocks and other securities

171,2123.2

175,160

3.2

51,562

1.0

49,5620.9

1,238,205

22.9

1,220,945

22.1

Policy loans

76,967

1.4

74,186

1.3

Ordinary loans

1,161,237

21.5

1,146,758

20.8

Real estate

246,220

4.6

275,831

5.0

Deferred tax assets

110,4222.0

62,170

1.1

Others63,547

1.2

57,421

1.0

Allowance for possible loan losses(11,290)(0.2)(2,430)(0.0)

5,402,946

100.0

5,519,429

100.0

441,7108.2

458,695

8.3

Securities

Other securities
Loans

Total
Foreign currency denominated assets

3.8 %

160,004

2.9 %(2) Changes (Increase/Decrease) in Assets(Millions of yen)
Year ended March 31, 2009
Cash, deposits, call loans
Monetary claims bought
Money held in trust
Securities
Domestic bonds
Domestic stocks
Foreign securities

36,202(477)(24,474)(340,821)
24,140(183,047)(182,841)(172,587)(10,253)
927
6,241
(572)
6,813
44,32474,316(1,632)(1,238)(207,559)(245,176)

Foreign bonds
Foreign stocks and other securities
Other securities
Loans
Policy loans
Ordinary loans
Real estate
Deferred tax assets
OthersAllowance for possible loan losses
Total
Foreign currency denominated assets-4-

Year ended March 31, 2010
(46,845)
(303)
(150)
196,948
97,15054,32847,46943,521
3,947(1,999)(17,259)(2,781)(14,478)
29,611(48,252)(6,125)
8,859
116,482
16,984

Fukoku Mutual Life Insurance Company

(3) Investment Income(Millions of yen)Interest, dividends and other income

Year ended
March 31, 2009

Year ended
March 31, 2010

115,027

110,757

Interest from deposits
Interest and dividends from securities

662
75,050493
70,444

Interest from loans

24,324

24,812

Income from real estate for rent

14,30014,718

689

287
165

Other interest and dividends
Gains from trading securities, net−
51,491

22,043

Gains on sales of domestic bonds

29,312

14,017

Gains on sales of domestic stocks
Gains on sales of foreign securities
OthersGains on redemption of securities
Gains from derivative instruments, net
Foreign exchange gains, net
Other investment income

17,176
5,002

7,664
333
27

Gains on sales of securities

−
−
−
−
212
166,730

Total

−
−
−
358
133,325(4) Investment Expenses(Millions of yen)Interest expenses
Losses from money held in trust, net
Losses from trading securities, net
Losses on sales of securities
Losses on sales of domestic bonds
Losses on sales of domestic stocks
Losses on sales of foreign securities
Losses on valuation of securities
Losses on valuation of domestic bonds
Losses on valuation of domestic stocks
Losses on valuation of foreign securities
Others
Losses on redemption of securities
Losses from derivative instruments, net
Foreign exchange losses, net
Provision for allowance for possible loan losses
Write-off of loans
Depreciation of real estate for rent and other assets
Other investment expenses
Total

Year ended
March 31, 2009

Year ended
March 31, 2010

1,974
3,912
3,343
95,471
2,427
43,67949,36325,2681,852
197−
41,494564
12,771
28,1581,588−
19,006
3,761
2,500

−
1,313

−
110
2,348
1,243

−
11,555
1,706

−
4,226
6,450
144,349

−
274

−
−
5,230
6,618
70,244(5) Net Investment Income(Millions of yen)

Net investment income-5-Year ended
March 31, 2009

Year ended
March 31, 2010

22,381

63,081

Fukoku Mutual Life Insurance Company

(6) Other Information on Investments(i) Investment Yield by Asset Categories(%)
Year ended
March 31, 2009

Cash, deposits, call loans
Monetary claims bought
Money held in trust
Securities
Domestic bonds
Domestic stocks
Foreign securities
Foreign bonds
Foreign stocks and other securities
Loans
Ordinary loans
Real estate
Total
Overseas investments

Year ended
March 31, 2010(0.12)(0.34)(9.10)(0.26)
2.83(4.44)(5.80)(7.42)(1.21)
1.90
1.72
3.06
0.41
(5.97)

0.11
1.28(0.60)
0.92
2.29(2.00)(2.49)(1.18)(5.53)
2.04
1.87
2.02
1.15
(2.45)

Notes: 1. Investment yield above are calculated by dividing the net investment income by the average daily balance on a bookvalue basis.
2. Overseas investments represent the total of foreign currency denominated assets and yen denominated assets.

(ii) Average Daily Balance(Millions of yen)
Year ended
March 31, 2009
Cash, deposits, call loans
Monetary claims bought
Money held in trust
Securities
Domestic bonds
Domestic stocks
Foreign securities
Foreign bonds
Foreign stocks and other securities
Loans
Ordinary loans
Real estate
Total
Overseas investments-6-

197,681
6,203
43,0073,648,942
2,388,027
441,768
752,721556,368
196,352
1,225,718
1,149,299
217,023
5,519,049
775,828

Year ended
March 31, 2010
179,839
1,932
32,8493,602,585
2,505,450
410,401
631,789441,214
190,574
1,227,486
1,152,196
268,005
5,479,791
654,472

Fukoku Mutual Life Insurance Company

(iii) Net Valuation Gains/Losses on Trading Securities(Millions of yen)
As of March 31, 2009
Net valuation gains/losses
Carrying value on
included in the statement
the balance sheetof operations(6,204)89,449Trading securities

As of March 31, 2010
Net valuation gains/losses
Carrying value on
included in the statement
the balance sheetof operations
111,220(1,866)

Note: The table above includes money held in trust for trading purpose.

(iv) Fair Value Information on Securities (with fair value, other than trading securities)(Millions of yen)
As of March 31, 2009

As of March 31, 2010

Gains/losses

Book value Fair value

Gains/losses

Book value Fair value

Gains

Losses

Gains

Losses152,157

156,525

4,368

5,177

809

430,883

433,717

2,834

5,212

2,377

Domestic bonds

113,032

117,328

4,296

4,332

36

382,130

383,997

1,866

4,110

2,243

Foreign bonds

39,12539,197

71

845

773

48,75349,720

967

1,101

134

Monetary claims bought

−

−

−

−

−

−

−

−

−

−

Negotiable certificate of deposits

−

−

−

−

−

−

−

−

−

−

Others

−

−

−

−

−

−

−

−

−

−

628,570644,212

15,641

16,131

489

639,749

657,551

17,801

18,125

324

1,393

954

(438)

−

438

1,393

933

(459)

−

459

2,678,173 2,622,561(55,611)

77,291

132,903 2,440,492 2,516,197

75,704

121,21745,512

Held-to-maturity debt securities

Policy-reserve-matching bonds
Investments in subsidiaries and affiliates
Available-for-sale securities
Domestic bonds
Domestic stocks

1,705,656 1,727,224
403,395

385,582

21,56828,906

7,338 1,530,802 1,544,097

13,294

21,898

8,603(17,813)45,49563,309438,734

76,50991,174

14,665
19,367362,224

Foreign securities

519,208

466,188(53,020)

2,388

55,408504,887

492,109(12,777)

6,589

Foreign bonds

328,436

306,869(21,567)

1,942

23,509323,137

318,842(4,295)

3,895

8,191

Foreign stocks and other securities

190,772

159,319(31,452)445

31,898

181,749

173,267(8,481)

2,693

11,175

Other securities

49,912

43,566(6,346)

501

6,847

42,577

41,256(1,321)

1,554

2,876

Money held in trust

−

−

−

−

−

−

−

−

−

−

Monetary claims bought

−

−

−

−

−

−

−

−

−

−

Negotiable certificate of deposits

−

−

−

−

−

−

−

−

−

−

Others

−

−

−

−

−

−

−

−

−

−

3,460,294 3,424,254(36,039)

98,600134,640 3,512,519 3,608,400

95,881

144,555

48,674

Total
Domestic bonds

41,50649,3707,863 2,552,683 2,585,645

32,962

44,134

11,171

Domestic stocks

403,395

385,582(17,813)45,49563,309362,224438,734

76,50991,174

14,665

Foreign securities

559,727

506,341(53,386)

3,233

56,619555,033

542,763(12,269)

7,691

19,960Foreign bonds

367,562

346,066(21,495)

2,787

24,283371,891

368,562(3,328)

4,997

8,325

Foreign stocks and other securities

192,165

160,274(31,891)445

32,336

183,142

174,200(8,941)

2,693

11,634

Other securities

2,447,258 2,488,764

49,912

43,566(6,346)

501

6,847

42,577

41,256(1,321)

1,554

2,876

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 whose market value are deemed extremely difficult to obtain are as follows:(Millions of yen)
As of March 31, 2009 As of March 31, 2010
Held-to-maturity debt securities−−

Unlisted foreign bonds−−

Others−−−−Investments in subsidiaries and affiliates

26,132

26,132Available-for-sale securities

Policy-reserve-matching bonds

25,671

17,157

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

7,174

8,351

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

500

500

Unlisted foreign bonds
Others
Total

-7-

−

−

17,9968,306

51,80343,290

Fukoku Mutual Life Insurance Company

(v) Fair Value Information on Money Held in Trust(Millions of yen)
As of March 31, 2009
Carrying value on
the balance sheet

Money held in trust

33,053As of March 31, 2010

Gains/losses

Fair value

Gains
33,053−−Losses−Carrying value on
the balance sheet

32,902

Gains/losses

Fair value

Gains32,902−−Losses−* Money held in trust for trading purpose(Millions of yen)
As of March 31, 2009

As of March 31, 2010

Net valuation gains/losses
included in the statementof operations

Carrying value on
the balance sheet
32,053

Money held in trust for trading purpose

Net valuation gains/losses
included in the statementof operations

Carrying value on
the balance sheet

520

31,9020* Money held in trust classified as held-to-maturity, policy-reserve-matching and available-for-sale(Millions of yen)
As of March 31, 2009
Book value

As of March 31, 2010

Gains/losses

Fair value

Gains

Book value

Gains/losses

Fair value

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

−

−

−

−

−

−

−

−

−

−

-8-

Fukoku Mutual Life Insurance Company

(reference) Fair Value Information on Derivative Instruments (General Account)(i) Gains and Losses on Derivatives
As of March 31, 2009
Hedge accounting applied
Hedge accounting not applied
Total
As of March 31, 2010
Hedge accounting applied
Hedge accounting not applied
Total(Millions of yen)Interestrelated
751
−
751
Interestrelated
826
−
826

Currencyrelated(954)(2,393)(3,347)
Currencyrelated(4,832)(1,901)(6,734)

StockBondrelated
related
−−(4,600)−(4,600)−StockBondrelated
related
−
−
(93)
350
(93)
350

Others

Total
−
−
−

(203)
(6,993)(7,197)
Total

Others−−−(4,006)(1,644)(5,650)Note: Gains and losses from applying fair value hedge accounting (currency- related, losses of \954 million as of March 31, 2009 and lossesof \4,832 million as of March 31, 2010) included in gains and losses with hedge accounting applied, and gains and losses with hedge
accounting not applied are reported in the statements of operations.

(ii) Interest-related Transactions
As of March 31, 2009
Notional amount/contract value
Fair
Over
value
1 yearGains(losses)(Millions of yen)
As of March 31, 2010
Notional amount/contract value
Fair
Gains
Over
value (losses)
1 yearOver-the-counter transactions
Interest rate swap contracts
Receipt fixed, payment floating
Payment fixed, receipt floating

71,0582,500

66,738
2,500

789
(38)

Total

789
(38)
751

62,3092,500

40,180
−

857
(30)

857
(30)
826

* Interest rate swap contracts by contractual maturity dates

Notional amount (receipts fixed, payments floating)

Average fixed rate (receipt)
Average floating rate (payment)
Notional amount (receipts floating, payments fixed)

Average floating rate (receipt)
Average fixed rate (payment)

As of March 31, 2009Over
1 year orOver
1 year toshorter
3 years
3 years
4,320
44,623
22,115
1.25%
1.26%
1.80%
1.24%
0.94%
1.27%
2,500
−
−
1.05%
−
−
1.84%
−
−

-9-

(Millions of yen)
As of March 31, 2010Over
1 year orOver
1 year toshorter
3 years
3 years
27,07022,12913,110
1.40%
1.14%
1.70%
0.55%
0.59%
0.79%
2,500
−
−
0.67%
−
−
1.84%
−
−

Fukoku Mutual Life Insurance Company

(iii) Currency-related Transactions
As of March 31, 2009
Notional amount/
Fair
contract value
value
Over
1 yearOver-the-counter transactions
Currency forward contracts
Sold
US dollar
Euro
Australian dollar
BoughtCurrency Options
Sold
Calls
[
Euro
[
US dollar[
Australian dollar[
Puts[
Bought
Calls
[
Puts
[
US dollar[
Euro[
Australian dollar[
Currency swap contracts
Australian dollar

214,060
124,325
89,734−−− 216,725− 125,222− 91,503−−−−

61,583
653 ]
5,600
39 ]
43,449395 ]
12,534
219 ]
−
−]

−
861

(2,665)(896)(1,768)−−(207) [

−
27

12 [

−
232

162 [

−
601

(382) [−−−]
57,040653 ]
40,550
395 ]
5,090
39 ]
11,400
219 ]
4,000
4,000

Gains
(losses)

−

− [

−

− [

−

223,264
141,925
65,32916,008−− 229,606− 146,495− 66,203− 16,907−−

17,302173 ]
12,600
141 ]
4,702
32 ]
−
−]
−
−]

−

4

(214) [−−]
40,365375 ]
22,310164 ]18,055
211 ]
−
−]

(58)
(58)

(58)
(58)

4,000
4,000

−
237

(416) [−
191(203) [

−
41

1 [

−

4,000
4,000

(Millions of yen)
As of March 31, 2010
Notional amount/
Fair
Gains
contract value
value(losses)Over
1 yearTotal(6,342)(4,569)
(874)
(898)
−

211

(38)

131

9

79

(47)

−

−

−

−

−

−

53

(322)

13

(151)

39

(171)

−

−

(31)
(31)

(31)
(31)

−
−
−
−
−
−
−
−
−
−
−

(3,347)(6,734)

Notes: 1. Figures in [ ] are option premiums which are included in balance sheet.
2. Forward exchange rates are used for exchange rates as of the end of fiscal year.
3. Regarding assets and liabilities which are denominated in foreign currencies but have fixed settlement in yen under currency forward contracts
and are reported in yen amounts in the balance sheet, those currency forward contracts are excluded from the table above.

(iv) Stock-related Transactions
As of March 31, 2009
Notional amount/Gainscontract value
Fair value(losses)Over
1 yearExchange-traded transactions
Yen stock index futures
Sold
BoughtYen stock index options
Sold
Calls
[
Puts
[
Bought
Calls
[
Puts
[

38,703
−

−
−

−
−]
−
−]

−

−
−]
−
−]

−

43,303−−(4,600)
−

− [

−
−

− [

−

− [

−
−

Total

− [

(Millions of yen)
As of March 31, 2010
Notional amount/Gainscontract value
Fair value(losses)Over
1 year
−
−

−
−

−
−]
−
−]

−

−
−]
9,500
93 ]

−

−
−

−
−

−

−

−

−

−

−

−

−
0

(93)

(4,600)(93)

As of March 31, 2009
Notional amount/Gainscontract value
Fair value(losses)Over
1 year(Millions of yen)
As of March 31, 2010
Notional amount/Gainscontract value
Fair value(losses)Over
1 yearNote: Figures in [ ] are option premiums which are included in balance sheet.

(v) Bond-related Transactions

Exchange-traded transactions
Yen bond futures
Sold
Bought

−
−

−
−

−
−

−
−
−

Total

- 10 -

90,193−−−89,843
−

350
−
350

Fukoku Mutual Life Insurance Company

(reference) Fair Value of Real Estate (Land and Leaseholds)(Millions of yen)
As of March 31, 2009
Carrying value on
the balance sheet
142,001

Fair value
269,274

As of March 31, 2010
Carrying value on
the balance sheet

Gains(losses)
127,273

162,335

Fair value
247,781

Gains(losses)
85,445

Notes: 1. As of March 31, 2009, fair value is based on the appraisal value by the real-estate appraiser, the appraisal value for property

tax as of January 1, 2009 and the road rate as of January 1, 2008.
2. As of March 31, 2010, fair value is based on the appraisal value by the real-estate appraiser, the appraisal value for property
tax as of January 1, 2010 and the road rate as of January 1, 2009.

- 11 -

Fukoku Mutual Life Insurance Company

4. Non-consolidated Balance Sheets(Millions of yen)

Assets:Cash and deposits
CashBank deposits
Call loans
Monetary claims bought
Money held in trust
Securities
Government bonds
Local government bonds
Corporate bonds
StocksForeign securities
Other securities
Loans
Policy loans
Ordinary loans
Tangible fixed assets
Land
Buildings
Lease asset
Construction in progress
Other tangible fixed assets
Intangible fixed assets
Software
Other intangible fixed assets
Reinsurance receivables
Other assets
Accounts receivable
Prepaid expenses
Accrued income
Deposits
Differential account for futures trading
Derivatives
Suspense payment
Other assets
Deferred tax assets
Allowance for possible loan losses

Total assets

As of March
31, 2009

As of March
31, 2010

49,382
134
49,248
183,600
2,055
33,0533,596,377
1,746,556
136,848616,227
448,295
596,372
52,0771,238,205
76,967
1,161,237
250,065
141,825
98,937
−
5,457
3,845
7,785
7,337
448
122
54,674
12,9302,393
21,523

69,110164
68,94591,0001,752
32,9023,800,984
1,887,071
124,642588,041505,012646,118
50,0971,220,945
74,186
1,146,758
279,476
162,160
96,66131
17,009
3,613
7,454
7,007
447
279
49,46012,284
2,051

2,416
5,027
1,682
4,340
4,360
110,422(11,290)

5,514,454

As of March As of March
31, 2009
31, 2010

Liabilities:
Policy reserves
Reserve for outstanding claims
Policy reserve
Reserve for dividends to policyholders
Reinsurance payables
Subordinated bonds
Other liabilities
Corporate income tax payable
Accounts payable
Accrued expenses
Unearned income
Deposits received
Guarantee deposits received
Differential account for futures trading
Derivatives
Suspense receipt
Reserve for employees' retirement benefits
Reserve for price fluctuation of securities
Deferred tax liabilities for revaluation reserve for land
Total liabilities
Net assets:
Foundation funds
Accumulated foundation funds redeemed
Reserve for revaluation
Surplus
Legal reserve for future losses
Other surplus
Reserve for redemption of foundation funds
Reserve for dividend allowances
22,040Reserve for advanced depreciation of realestate for tax purpose
2,228
Other reserves−
1,216
Unappropriated surplus
5,430 Total foundation funds and surplus
4,207 Net unrealized gains (losses) on available-for-sale62,170 securities, net of tax(2,430) Deferred valuation gains (losses) under hedge accounting
Revaluation reserve for land, net of tax
Total valuation and translation adjustments
Total net assets

5,613,104 Total liabilities and net assets- 12 -

5,221,451
28,2205,135,913
57,31787
38,87039,550
107
1,680
9,975
517
5,050
11,712
−
8,879
1,625
49,29324,622
20,026
5,393,901

5,225,501
25,342
5,145,399
54,759117
37,40641,921
1,291
3,290
10,434452
5,016
12,893
337
6,867
1,338
49,776
26,451
19,9835,401,158

40,00031,000112
83,621
1,987
81,63420,000
3,895

40,00046,000112
76,2292,187
74,042
15,000
3,895

311

303

767
56,660154,733

767
54,075
162,341(35,474)

48,291

479
814(34,180)
120,553538
773
49,604211,946

5,514,454

5,613,104

Fukoku Mutual Life Insurance Company

5. Non-consolidated Statements of Operations

Ordinary revenues:
Premium and other income
Premium income
Reinsurance income
Investment income
Interest, dividends and other income
Interest from deposits
Interest and dividends from securities
Interest from loans
Income from real estate for rent
Other interest and dividends
Gains from trading securities, net
Gains on sales of securities
Other investment income
Gains from separate accounts, net
Other ordinary revenues
Fund receipt from annuity rider
Fund receipt from deposit of claims paid
Reversal of reserve for outstanding claims
Reversal of policy reserve
Reversal of reserve for employees' retirement benefits
OthersTotal ordinary revenues
Ordinary expenditures:
Claims and other payments
ClaimsAnnuities
Benefits
Surrenders
Other payments
Reinsurance premiums
Provision for policy reserve and others
Provision for reserve for outstanding claims
Provision for policy reserve
Interest on accumulated dividends to policyholders
Investment expenses
Interest expenses
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
Provision for allowance for possible loan losses
Depreciation of real estate for rent and other assets
Other investment expenses
Losses from separate accounts, net
Operating expenses
Other ordinary expenditures
Claim deposit payments
Taxes
Depreciation
Provision for reserve for employees' retirement benefits
OthersTotal ordinary expenditures
Ordinary profits
Extraordinary gains:
Gains on disposal of fixed assets
Reversal of reserve for price fluctuation of securities
Reversal of allowance for possible loan losses
Total extraordinary gains
Extraordinary losses:
Losses on disposal of fixed assets
Impairment losses
Provision for reserve for price fluctuation of securities
Total extraordinary losses
Surplus before income taxes
Income taxes - current
Income taxes - deferred
Total of income taxes
Net surplus for the year

- 13 -

Year ended March
31, 2009(Millions of yen)
Year ended March
31, 2010

646,726
646,500
226
166,730
115,027662
75,05024,32414,300689−
51,491
212−
68,227557
19,967−45,866
211
1,624
881,685

623,778
623,490
288
147,754
110,757493
70,444
24,812
14,718287
165
22,043358
14,42815,984
777
10,120
2,878
−
−
2,208
787,517596,550
205,663
89,550151,181
109,976
39,840
338
2,047
1,804
−
242
169,435
1,974
3,912
3,343
95,471
25,268
110
2,348
1,243
4,226
6,450
25,086
86,13725,34914,532
4,957
5,583
−
277
879,5202,164

564,214
178,959
88,092
146,378
114,050
36,396
336
9,643
−
9,485
157
70,244
1,852
197−
41,494
1,588
11,555
1,706
−
5,230
6,618
−
87,65822,79911,551
4,916
5,430
483
417
754,558
32,95841,72429,289−71,014

326
−
606
933

904
514
−
1,418
71,7603,645
11,251
14,89656,863

685
865
1,829
3,380
30,511
3,746
629
4,375
26,135

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 andin 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.
In addition, the notes to the non-consolidated financial statements include information which is not
required under accounting principles generally accepted in Japan but is presented herein as additional
information.
Amounts of less than one million yen have been eliminated. As a result, total in yen shown herein
do not necessarily agree with the sum of the individual amounts.

II. Notes to Balance Sheets
1. Significant Accounting Policies(1) Valuation Methods of Securities
The valuation of securities, including bank deposits and monetary claims bought which are equivalent
to securities, and securities managed as trust assets in money held in trust, is as follows:i)

Trading securities are stated at fair market value. Costs of their sales are determined by themoving average method.

ii)

Held-to-maturity debt securities are stated at amortized cost under the straight-line method,
cost being determined by the moving average method.

iii)

Policy-reserve-matching bonds are stated at amortized cost under the straight-line method,
cost being determined by the moving average method in accordance with “Temporary
Treatment of Accounting and Auditing Concerning Policy-reserve-matching Bonds inInsurance Industry” (Industry Audit Committee Report No.21 issued by the Japanese Instituteof Certified Public Accountants on November 16, 2000).

iv)

Investments in subsidiaries and affiliates are stated at cost, cost being determined by themoving average method.

v)

Available-for-sale securities with fair market value are stated at fair market value based on
the market prices at the end of fiscal year. Costs of their sales are determined by the moving
average method. Net unrealized gains or losses on these available-for-sale securities, net oftaxes, are recorded as a separate component of net assets.
Available-for-sale securities with no fair market value are stated at cost, cost being
determined by the moving average method, except for public and corporate bonds including
foreign bonds, of which the difference between acquisition cost and face value is considered
to be an adjustment of interest. Such bonds are stated at amortized cost under the straightline method, cost being determined by the moving average method.

(2) Valuation Methods of Derivative Instruments
Derivative instruments are stated at fair market value.
(3) Revaluation of Land
The Company revalued the land for business purposes based on the Law for Revaluation of Land
(Law No.34 promulgated on March 31, 1998). The difference between fair value and book value
resulting from the revaluation, net of related taxes, is recorded as revaluation reserve for land as a

- 14 -

Fukoku Mutual Life Insurance Company

separate component of net assets and the related tax is recorded as deferred tax liabilities forrevaluation reserve for land.
• Date of revaluation: March 31, 2002
• Method of revaluation as prescribed for in Article 3 Paragraph 3 of the said Law:
Calculation is based on the appraisal value for property tax set forth in Article 2 item 3 of the
Enforcement Ordinance of the Law for Revaluation of Land (Government Ordinance No.119
promulgated on March 31, 1998) and the road rate set forth in Article 2 item 4 of the said
Ordinance with certain reasonable adjustments.
(4) Depreciation of Tangible Fixed Assets
Depreciation of tangible fixed assets is calculated by the following methods.
• Buildings (excluding lease assets)i)

Acquired on or before March 31, 1998: Previous declining-balance methodii)

Acquired on or after April 1, 1998 but on or before March 31, 2007: Previous straight-line
methodiii)

Acquired on or after April 1, 2007: Straight-line method• Assets other than buildings (excluding lease assets)i)

Acquired on or before March 31, 2007: Previous declining-balance methodii)

Acquired on or after April 1, 2007: Declining-balance method• Lease assets related to finance lease transactions that do not transfer ownership: Straight-line
method over the lease term
Other tangible fixed assets acquired for ¥100,000 or more but less than ¥200,000 are depreciatedequally over three years.
(5) Foreign Currency Translation
Foreign currency-denominated assets and liabilities, except for investments in subsidiaries andaffiliates, are translated into Japanese yen at the effective exchange rate prevailing at the balance
sheet date. Investments in subsidiaries and affiliates are translated into Japanese yen at the exchange
rate on the date of acquisition.
(6) Allowance for Possible Loan Losses
Allowance for possible loan losses is provided in accordance with the Company’s standards of selfassessment and write-offs and reserves on credit quality:i)

For the credits of borrowers who are legally bankrupt such as being in the proceedings ofbankruptcy or civil rehabilitation (hereinafter called “legally bankrupt borrowers”) and who aresubstantially bankrupt (hereinafter called “substantially bankrupt borrowers”), the Company
provides the remaining amount of credits after the direct write-off described below and the
deductions of the amount expected to be collected through the disposal of collateral or the
execution of guarantees.

ii)

For the credits of borrowers who are not currently bankrupt but have a high possibility ofbankruptcy, the Company provides the amounts deemed as necessary considering theborrowers’ ability to pay, within the amounts after deductions of the amount expected to becollected through the disposal of collateral or the execution of guarantees.

iii)

For the credits of borrowers other than the above, the Company provides the amounts
calculated by multiplying the borrowers’ balance by the actual ratio of bad debt losses on
defaults during a certain past period.

All credits are assessed by the relevant departments in accordance with the Company’s standards ofself-assessment on credit quality. The results of the assessment are reviewed by the audit department,- 15 -

Fukoku Mutual Life Insurance Company

which is independent of business-related divisions. Subsequently, the allowance for possible loan
losses are provided based on the results of these assessments.
For the credits of legally bankrupt borrowers and substantially bankrupt borrowers, the amounts
remaining after deductions of collateral value or the amounts collectible through the execution ofguarantees is written-off directly from the borrower’s balance as the estimated uncollectible amounts.
The amount written-off as of March 31, 2010 was ¥9,036 million.
(7) Reserve for Employees’ Retirement Benefits
The Company adopts accounting standards for employees' retirement benefits (Business Accounting
Council dated June 16, 1998) and accounts for the reserve for employees’ retirement benefits basedon the projected benefit obligation and plan assets at the balance sheet date.
(8) Reserve for Price Fluctuation of Securities
Reserve for price fluctuation of securities is calculated in accordance with Article 115 of the Insurance
Business Law.
(9) Lease Transactions as a Lessee
Finance lease transactions that do not transfer ownership to the lessee whose commencement day
was on or before March 31, 2008 continued to be accounted for in a manner similar to accounting
treatment for ordinary rental transactions.
(10) Lease Transactions as a Lessor
For the finance lease transactions where the Company is a lessor, the lease fee is recorded in“interest, dividends and other income” at the time of receiving lease fee. The corresponding cost of thelease assets is recorded in “other investment expenses”, which is calculated by deducting an amountequivalent to the interest allocated over the lease term from the lease fee received.
(11) Accounting for Hedge Activities
Hedge accounting is based on “Accounting Standards for Financial Instruments” (ASBJ Statement
No.10 issued by the Accounting Standards Board of Japan on August 11, 2006).
For the foreign currency forward contracts against the exchange rate fluctuations in the value of
foreign currency-denominated bonds classified as available-for-sale securities, which qualify for hedge
accounting because of high correlation and effectiveness between the hedging instruments and thehedged items, valuation gains and losses on the foreign currency forward contracts are recorded in
the statements of operations.
For the interest rate swaps against the interest rate fluctuations regarding loans, which qualify forhedge accounting because of high correlation and effectiveness between the hedging instruments andthe hedged items, valuation gains and losses on the interest rate swaps are deferred until the maturityof the hedged transactions.
Deposits denominated in foreign currencies for which forward foreign exchange contracts areused to hedge the foreign currency fluctuations are translated at the contract rates if the forward
contracts qualify for specific hedge accounting. In this case, exchange differences between theexchange rate on the trade date and the forward contract rate are allocated to each fiscal year fromthe date contracted to the date settled.
For judging the effectiveness of hedge used, ratio analysis of comparing the fluctuations in the fairvalue or cash flows of hedged items and hedging instruments is mostly applied.
(12) Accounting for Consumption Taxes
The Company accounts for consumption taxes by the tax-exclusion method. The consumption taxes
on certain assets, which are not deductible from consumption taxes withheld and that are stipulated to
be deferred under the Tax Law, are deferred as prepaid expenses and amortized equally over five- 16 -

Fukoku Mutual Life Insurance Company

years. Consumption taxes other than deferred consumption taxes are recognized as an expense whenincurred.
(13) Policy Reserve
Policy reserve is based on Article 116 of the Insurance Business Law, and the premium reserve at theend of fiscal year is calculated by the following method:
In regard to the policies subject to the standard policy reserve, the method as prescribed by theCommissioner of Financial Services Agency (Ministry of Finance Ordinance No. 48, 1996) is applied.
In regard to the policies not subject to the standard policy reserve, the net level premium method
is applied.
(14) Software
The software for internal use is amortized based on straight-line method over the estimated useful
lives.
(15) Deferred Assets
Discount on bonds is amortized equally over the period for which interest on bonds is fixed. This
amount is deducted from bonds.
(16) Policy-reserve-matching Bonds
Of the bonds corresponding to the sub-groups which are set by insurance types and investment
policies, the bonds that are held to match the duration of liabilities are classified as policy-reservematching bonds in accordance with “Temporary Treatment of Accounting and Auditing Concerning
Policy-reserve-matching Bonds in Insurance Industry”. (Industry Audit Committee Report No.21 issued
by the Japanese Institute of Certified Public Accountants on November 16, 2000).
2. Change in Accounting Policy
Effective for the year ended March 31, 2010, the Company adopted “Partial Amendments to
Accounting Standard for Retirement Benefits (Part 3)“ (ASBJ Statement No.19 issued by the
Accounting Standards Board of Japan on July 31, 2008). There is no effect of the change on ordinary
profit and surplus before income taxes since the Company has decided to use the same discount rate
as before.
3. Financial Instruments
Asset management of the general account other than the separate account stipulated in Article 118
Paragraph 1 of the Insurance Business Law is conducted on the principle of prudent and profitable
investments, considering public and social responsibilities of the insurance business. Based on thispolicy, the Company allocates the fund, securing its liquidity, from the medium-to-long term viewpoints.
The Company is diversifying investments in assets such as foreign securities and equity securities
within the acceptable range of risk in order to enhance the profitability, although yen-denominatedinterest bearing assets including debt securities such as Japanese government bonds and loans are
the cores of the portfolios. Derivatives are mainly used to mitigate the market risk regarding thesecurities and loans. Major financial instruments including securities, loans and derivatives are
exposed to market risk and credit risk.
The Company manages its asset management risk by establishing internal control systems
including various rules pursuant to the “Basic Policy for Risk Management” established by the Board of
Directors. Specifically, the Company eliminates excessive risk deviating from the basic principle andsecures the safety of the assets by utilizing control functions of the Financial and Investment Risk
Management Department towards the asset management sections, monitoring the status of market
risk and credit risk periodically on a daily or monthly basis. In addition, the Company quantifies themarket risk and credit risk using value-at-risk (VaR) method in order to control the possible maximum
losses which may arise from the holding assets within a certain range of risk buffers.

- 17 -

Fukoku Mutual Life Insurance Company

The carrying amounts, fair values and their related differences of major financial assets andliabilities are as follows:
As of March 31, 2010
Carrying
amountFair value

Difference(Millions of yen)

Deposits:
Deposits not treated as securities ....................
Total deposits ....................................................
Call loans ..............................................................
Monetary claims bought:
Claims treated as loans ....................................
Total monetary claims bought ...........................
Money held in trust:
Trading securities..............................................
Total money held in trust...................................
Securities:
Trading securities..............................................
Held-to-maturity debt securities........................
Policy-reserve-matching bonds ........................
Investments in subsidiaries and affiliates .........
Available-for-sale securities ..............................
Total securities ..................................................
Loans:
Policy loans.......................................................
Ordinary loans ..................................................
Total loans.........................................................
Derivative instruments:
Hedge accounting not applied ..........................
Hedge accounting applied ................................
Total derivative instruments ..............................

¥――¥ 68,839
68,83991,000¥ 68,839
68,83991,000

1,752
1,752

1,743
1,743

(8 )
(8 )

31,902
31,902

31,902
31,902――

79,317
430,883
639,749
1,393
2,516,197
3,667,541

79,317433,717657,551933
2,516,197
3,687,718―
2,834
17,801(459 )―
20,17674,186
1,146,758
1,220,945

74,186
1,174,444
1,248,630(0 )27,68527,685(1,644 )(4,006 )(5,650 )(1,644 )(4,006 )(5,650 )―――(1) Deposits excluding those which are treated as securities based on “Accounting Standards for
Financial Instruments” (ASBJ Statement No.10) and call loans:
The fair values of deposits and call loans are based on their carrying values since fair values
approximate carrying values due to their short maturities.
(2) Securities including deposits and monetary claims bought which are treated as securities basedon “Accounting Standards for Financial Instruments” (ASBJ Statement No.10) and securities
managed as trust assets in money held in trust:
The fair values of marketable securities are measured at the quoted market price at the end of
fiscal year. The fair values of other securities without the quoted market price are based on theprices reasonably calculated such as the prices offered by the information vendors or
counterparty financial institutions. Investments in subsidiaries and affiliates, unlisted equity
securities and investments in partnerships whereby partnership assets consist of unlisted equity
securities whose fair values are deemed extremely difficult to obtain, are excluded from above
securities. The carrying amounts of investments in subsidiaries and affiliates, unlisted equity
securities and investments in partnerships as of March 31, 2010 were ¥26,132 million, ¥8,851
million and ¥8,306 million, respectively.
(3) Loans and monetary claims bought treated as loans:
The fair values of policy loans are deemed to approximate carrying values, considering estimatedrepayment period and interest rate conditions since their repayment deadline have not been set
up due to the characteristics that the loan is limited to the amount of cash surrender values.
Therefore, the carrying values are used as the fair values of policy loans.
The fair values of floating interest rate loans among the ordinary loans and monetary claims- 18 -

Fukoku Mutual Life Insurance Company

bought treated as loans approximate the carrying values because the market interest rates arereflected in future cash flows in a short period. Therefore, the fair values of floating interest rateloans and monetary claims bought treated as loans are based on their carrying values. The fairvalues of fixed interest rate loans are measured by discounting the future cash flows to thepresent values. The fair values of loans receivable from legally bankrupt borrowers, substantiallybankrupt borrowers and borrowers who are not currently bankrupt but have a high possibility ofbankruptcy and monetary claims bought treated as loans are computed by deducting the amountof the allowance for doubtful accounts from the carrying values before direct write-offs.
(4) Derivative instruments:i)

The fair values of the futures and options traded at the exchange are measured at thesettlement price of the exchange.
ii) The fair values of options and swaps traded over the counter are based on the quoted prices
offered by counterparty financial institutions.
iii) The fair values of foreign currency forward contracts are determined based on the spot
exchange rate and forward contract rate.
4. Investment and Rental Property
The Company holds investment and rental properties such as office buildings in Tokyo and otherareas. The carrying amount and the fair value of these investment and rental properties as of March
31, 2010 were ¥227,544 million and ¥298,967 million, respectively. The fair value is mainly based on
the value calculated by the Company in accordance with real estate appraisal standards which
includes some adjustments using the reference prices.
5. Loans Receivable
The amounts of credits to bankrupt borrowers, delinquent loans and restructured loans, which were
included in loans, were ¥352 million, ¥2,119 million and ¥166 million, respectively and their total
amounts were ¥2,638 million as of March 31, 2010. There was no balance of delinquent loans past 3
months or more as of March 31, 2010
The direct write-offs related to loans decreased credits to bankrupt borrowers by ¥8,097 million
and delinquent loans by ¥938 million as of March 31, 2010.
Credits to bankrupt borrowers represent loans, excluding the balances already written-off, whichmeet the conditions prescribed in Article 96 Paragraph 1 Item 3 and 4 of the Enforcement Regulationsof the Corporate Tax Law. Moreover, accruing interest of these loans is not recorded as income after
determining that principal of or interest on these loans is unlikely to be collected due to the significant
delay in repayment of principal or interest payment or for some other reasons.
Delinquent loans are credits whose accruing interest is not recorded as income due to the same
reasons as described above, and exclude credits to bankrupt borrowers and loans for which interest
payments have been suspended and rescheduled to assist and support the borrowers in the
restructuring of their business.
Delinquent loans past 3 months or more are loans for which interest payment or repayment ofprincipal are delinquent for 3 months or more from the due date under the terms of the related loan
agreements, excluding those loans classified as credits to bankrupt borrowers and delinquent loans.
Restructured loans are loans for which certain concessions favorable to borrowers, such as
interest reduction or exemptions, rescheduling of due date of principal or interest payment, waiver ofclaim or other terms, have been negotiated for the purpose of assisting and supporting the borrowers
in the restructuring of their business. This category excludes loans classified as credits to bankrupt
borrowers, delinquent loans and delinquent loans past 3 months or more.
6. Accumulated Depreciation of Tangible Fixed Assets
Accumulated depreciation of tangible fixed assets totaled to ¥129,610 million as of March 31, 2010.

- 19 -

Fukoku Mutual Life Insurance Company

7. Separate Accounts
Total assets in separate accounts provided for in Article 118 of the Insurance Business Law were¥95,207 million as of March 31, 2010. The amount of separate account liabilities was the same as
separate account assets.
8. Receivables from/Payables to Subsidiaries
The total amounts of receivables from/payables to subsidiaries were ¥3,463 million and ¥1,433 million
as of March 31, 2010, respectively.
9. Monetary Claims to Directors
Monetary claims to directors as of March 31, 2010 were ¥8 million.
10. Income Taxes
Deferred tax assets and deferred tax liabilities as of March 31, 2010 were ¥94,720 million and ¥29,692
million, respectively. Valuation allowance for deferred tax assets was ¥2,857 million.
Major components of deferred tax assets were ¥57,349 million of policy reserves, ¥18,024 millionof reserve for employees’ retirement benefits and ¥9,577 million of reserve for price fluctuation of
securities as of March 31, 2010. Major component of deferred tax liabilities was ¥27,412 million of net
unrealized gains on available-for-sale securities as of March 31, 2010.
The statutory tax rate and the actual effective tax rate for the year ended March 31, 2010 were
36.2% and 14.3%, respectively. The major difference between the statutory tax rate and the actual
effective tax rate was (23.1%) of reserve for dividends to policyholders.
11. Reserve for Dividends to Policyholders
Changes in reserve for dividends to policyholders for the year ended March 31, 2010 were as follows:(Millions of yen)
Balance at the end of previous fiscal year.........
Transfer from surplus in previous fiscal year .....
Dividends paid in the current fiscal year............
Increase in interest ............................................
Balance at the end of current fiscal year ...........

¥ 57,317
17,856(20,571)157¥ 54,759

12. Stocks of Subsidiaries
The amount of stocks of subsidiaries the Company held as of March 31, 2010 was ¥27,525 million.
13. Pledged Assets and Secured Debts
Assets pledged as collateral as of March 31, 2010 were ¥21,642 million of securities. Secured debts
as of March 31, 2010 were ¥4,548 million.
14. Policy Reserves for the Reinsurance Contracts
Reserve for outstanding claims for the reinsurance contracts provided in accordance with Article 71
Paragraph 1 of the Enforcement Regulation of the Insurance Business Law (hereinafter called“reserve for outstanding claims for ceded reinsurance”) was ¥32 million as of March 31, 2010.
Policy reserve for the reinsurance contracts provided in accordance with Article 71 Paragraph 1 of
the Enforcement Regulation of the Insurance Business Law (hereinafter called “policy reserve forceded reinsurance”) was ¥30 million as of March 31, 2010.

- 20 -

Fukoku Mutual Life Insurance Company

15. Adjustment Items for Redemption of Foundation Funds and Appropriation of Net Surplus
The total amount of adjustment items for redemption of foundation funds and appropriation of net
surplus defined in Article 30 Paragraph 2 of the Enforcement Regulation of the Insurance Business
Law was ¥49,716 million as of March 31, 2010.
16. Additional Foundation Funds
The Company raised additional foundation funds of ¥15,000 million during the year ended March 31,
2010 in accordance with Article 60 of the Insurance Business Law.
17. Redemption of Foundation Funds
In the year ended March 31, 2010, in connection with the redemption of foundation funds of ¥15,000
million, the Company reversed the reserve for redemption of foundation funds and provided theequivalent amount for accumulated foundation funds redeemed in accordance with Article 56 of the
Insurance Business Law.
18. Commitment LineAs of March 31, 2010, there were unused commitment line agreements under which the Company is
the lender of ¥5,653 million.
19. Subordinated Bonds
Repayments of subordinated bonds are subordinated to other obligations.
20. Assets Denominated in Foreign Currencies
Assets denominated in foreign currencies as of March 31, 2010 totaled to ¥482,896 million. The
principal foreign currency asset amounts as of March 31, 2010 were 1,466 million euros and
US$2,937 million.
Liabilities denominated in foreign currencies as of March 31, 2010 totaled to ¥38,330 million. The
foreign currency liability amount as of March 31, 2010 was 306 million euros.
21. Contribution to Policyholders Protection Corporation
The future contribution to the Life Insurance Policyholders Protection Corporation of Japan under
Article 259 of the Insurance Business Law was estimated at ¥10,639 million as of March 31, 2010. The
contribution was charged as operating expenses in the year in which it was paid.
22. Reserve for Employees’ Retirement Benefits(1) The reserve for employees’ retirement benefits as of March 31, 2010 was calculated as follows:(Millions of yen)a. Projected benefit obligation .........................
b. Fair value of pension plan assets ................
c. Unfunded benefit obligation (a+b) ..............
d. Unrecognized actuarial differences .............
e. Unrecognized prior service cost ..................
f. Reserve for employees’ retirement benefits (c+d+e)- 21 -¥ (71,591 )
16,009(55,581 )
5,667
137¥ (49,776 )Fukoku Mutual Life Insurance Company

(2) Gross amount of retirement benefit expenses for the year ended March 31, 2010 was as follows:(Millions of yen)
Service cost ...........................................................
Interest cost ...........................................................
Expected return on plan assets .............................
Recognized actuarial differences...........................
Amortization of prior service cost...........................

¥ 3,1661,438(450 )
1,231
34¥ 5,420(3) The assumptions used in calculation of the above information were as follows:• Method of attributing the projected benefits toperiods of service ......................................................
• Discount rate .............................................................
• Expected rate of return on pension plan assets........
• Recognition period of actuarial differences ...............
• Amortization period of prior service cost ...................

Straight-line basis
2.0%
3.0%
10 years
10 yearsIII. Notes to Statements of Operations
1. Transactions with Subsidiaries
The total amounts of revenues and expenditures in connection with subsidiaries were ¥982 million and¥7,764 million for the year ended March 31, 2010.
2. Gains on Sales of Securities
Major items of gains on sales of securities for the year ended March 31, 2010 were as follows:(Millions of yen)Domestic bonds ..............................................................
Domestic stocks and others............................................
Foreign securities ...........................................................

¥ 14,017
7,664
333

3. Losses on Sales of Securities
Major items of losses on sales of securities for the year ended March 31, 2010 were as follows:(Millions of yen)Domestic bonds ..............................................................
Domestic stocks and others............................................
Foreign securities ...........................................................

¥ 564
12,771
28,158

4. Losses on Valuation of Securities
Major items of losses on valuation of securities for the year ended March 31, 2010 were as follows:(Millions of yen)Domestic stocks and others............................................

¥ 1,313

5. Policy Reserves for the Reinsurance Contracts
For the year ended March 31, 2010, reversal of reserve for outstanding claims for ceded reinsurance
considered in calculation of reversal of reserve for outstanding claims was ¥22 million and provision
for policy reserve for ceded reinsurance considered in calculation of provision for policy reserve was¥0 million.

- 22 -

Fukoku Mutual Life Insurance Company

6. Gains (Losses) from Trading Securities
Major items of gains / losses from trading securities for the year ended March 31, 2010 were as
follows:(Millions of yen)Interest, dividends and other income..............................
Gains (Losses) on sales of trading securities.................
Gains (Losses) on valuation of trading securities...........

¥ 2,527(494 )(1,866 )7. Losses from Money Held in Trust
Losses from money held in trust for the year ended March 31, 2010 included valuation gains of ¥0
million.
8. Losses from derivative Instruments
Losses from derivative instruments for the year ended March 31, 2010 included valuation gains of¥5,607 million.
9. Impairment of Fixed Assets
For the year ended March 31, 2010, impairment losses of fixed assets was as follows:(1) Method of grouping
Real estate and other assets used for insurance business operations are classified as one asset groupas a whole. Other assets such as real estate for rent and unused real estate are classified as one
group individually.
(2) Background of recognizing the impairment losses
Profitability of certain real estate for rent dropped down significantly due to a decrease in the level ofrental income and a declining trend of market prices of land. The Company reduced its book values ofsuch real estate for rent and unused real estate to their recoverable amounts. The amounts reduced
were recognized as impairment losses and included in the extraordinary losses.
(3) Asset groups recognized impairment losses and losses by fixed assets

Asset

Land

Impairment losses
Buildings
and others

Total(Millions of yen)(i) Real estate for rent...
(ii) Unused real estate ...
Total (i)+(ii)................

¥ 71
136
¥ 208

¥

5
651
¥ 656

¥ 76
788
¥ 865

(4) Calculation method of recoverable amount
Recoverable amount is based on net sales value. Net sales value is determined based on appraisal
value, posted price or road rate.

- 23 -

Fukoku Mutual Life Insurance Company

6. Breakdown of Ordinary Profits (Fundamental Profit)
Year ended
March 31, 2009

(Millions of yen)
Year ended
March 31, 2010

A

75,66670,506

Capital 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
Other one-time gains
Reinsurance income
Reversal of contingency reserve
OthersOther one-time losses
Reinsurance premiums
Provision for contingency reserve
Provision for specific allowance for possible loan losses
Allowance for specified overseas loans
Write-off of loans
OthersOther one-time gains (losses)
C
Ordinary profits
A+B+C

51,491−−51,491−−−
133,619
4,430
5,989
95,471
25,268110
2,348−(82,127)(6,460)
9,339
−
9,339
−
714
−
−
714
−
−
−
8,625
2,164

22,043−−22,043−−−59,093387
2,361
41,494
1,588
11,555
1,706−(37,050)
33,456
−
−
−
−
498
−
498
−
−
−
−
(498)
32,958Fundamental profit

Notes: 1. The following amounts in respect of gains / losses from money held in trust have been excluded from
capital gains / losses and included in fundamental profit due to their income nature (being interest anddividend income): ¥518 million in respect of the year ended March 31, 2009 and ¥189 million in respectof the year ended March 31, 2010.
2. The following amounts in respect of gains / losses from trading securities have been excluded from
capital gains / losses and included in fundamental profit due to their income nature (being interest anddividend income): ¥2,645 million in respect of the year ended March 31, 2009 and ¥2,527 million in respectof the year ended March 31, 2010.

Breakdown of Fundamental Profit(100 millions of yen)
Year ended
March 31, 2009
756
134
737
(116)

Fundamental profit
Loading profit
Mortality and morbidity profit
Negative spread- 24 -

Year ended
March 31, 2010
705
76
778

(149)

Fukoku Mutual Life Insurance Company

7. Non-consolidated Statements of Changes in Net Assets(Millions of yen)

For the year ended
March 31, 2009

For the year ended
March 31, 2010

40,00040,000−−−40,00015,000(15,000)−
40,00031,00031,000−−31,00015,00015,00046,000

112

112

−
112

−
112

1,787

1,987

200
200
1,987

200
200
2,187

10,00020,00010,000−10,00020,00010,000(15,000)(5,000)15,000

3,895

3,895

−
3,895

−
3,895

319

311

(8)
(8)
311

(7)
(7)
303

767

767

−
767

−
767

55,671

56,660(31,868)
(200)
(716)
56,863(10,000)
8(13,098)
988
56,660(17,856)
(200)
(716)
26,135(10,000)
744(2,584)54,075

Foundation funds and surplus
Foundation funds
Balance at the end of previous fiscal year
Changes in the current fiscal year
Financing of additional foundation funds
Redemption of foundation funds
Total changes in the current fiscal year
Balance at the end of current fiscal year
Accumulated foundation funds redeemed
Balance at the end of previous fiscal year
Changes in the current fiscal year
Additions to accumulated foundation funds redeemed
Total changes in the current fiscal year
Balance at the end of current fiscal year
Reserve for revaluation
Balance at the end of previous fiscal year
Changes in the current fiscal year
Total changes in the current fiscal year
Balance at the end of current fiscal year
Surplus
Legal reserve for future losses
Balance at the end of previous fiscal year
Changes in the current fiscal year
Additions to legal reserve for future losses
Total changes in the current fiscal year
Balance at the end of current fiscal year
Other surplus
Reserve for redemption of foundation funds
Balance at the end of previous fiscal year
Changes in the current fiscal year
Additions to reserve for redemption of foundation funds
Reversal of reserve for redemption of foundation funds
Total changes in the current fiscal year
Balance at the end of current fiscal year
Reserve for dividend allowances
Balance at the end of previous fiscal year
Changes in the current fiscal year
Total changes in the current fiscal year
Balance at the end of current fiscal year
Reserve for advanced depreciation of real estate for tax purpose
Balance at the end of previous fiscal year
Changes in the current fiscal year
Reversal of reserve for advanced depreciation of real estate for tax purpose
Total changes in the current fiscal year
Balance at the end of current fiscal year
Other reserves
Balance at the end of previous fiscal year
Changes in the current fiscal year
Total changes in the current fiscal year
Balance at the end of current fiscal year
Unappropriated surplus
Balance at the end of previous fiscal year
Changes in the current fiscal year
Additions to reserve for dividends to policyholders
Additions to legal reserve for future losses
Payment of interest on foundation funds
Net surplus for the year
Additions to reserve for redemption of foundation funds
Reversal of reserve for advanced depreciation of real estate for tax purpose
Reversal of revaluation reserve for land
Total changes in the current fiscal year
Balance at the end of current fiscal year

- 25 -

Fukoku Mutual Life Insurance Company

7. Non-consolidated Statements of Changes in Net Assets (Continued)(Millions of yen)

For the year ended
March 31, 2009

For the year ended
March 31, 2010

72,441

83,621(31,868)(716)
56,863−(13,098)
11,18083,621(17,856)(716)
26,135(15,000)
44(7,392)
76,229143,553

154,733−(31,868)−(716)
56,863−−(13,098)
11,180154,733

15,000(17,856)
15,000(716)
26,135(15,000)(15,000)
44
7,607
162,341

115,334(35,474)(150,809)(150,809)(35,474)

83,766
83,76648,291

408

479

70
70
479

59
59
538

(12,335)

814

13,14913,149
814

(40)
(40)
773

103,407(34,180)(137,588)(137,588)(34,180)

83,78583,78549,604

246,961

120,553−(31,868)−(716)
56,863−−(13,098)(137,588)(126,407)
120,553

15,000(17,856)
15,000(716)
26,13515,00015,00044
83,78591,393211,946

Total surplus
Balance at the end of previous fiscal year
Changes in the current fiscal year
Additions to reserve for dividends to policyholders
Payment of interest on foundation funds
Net surplus for the year
Reversal of reserve for redemption of foundation funds
Reversal of revaluation reserve for land
Total changes in the current fiscal year
Balance at the end of current fiscal year
Total foundation funds and surplus
Balance at the end of previous fiscal year
Changes in the current fiscal year
Financing of additional foundation funds
Additions to reserve for dividends to policyholders
Additions to accumulated foundation funds redeemed
Payment of interest on foundation funds
Net surplus for the year
Redemption of foundation funds
Reversal of reserve for redemption of foundation funds
Reversal of revaluation reserve for land
Total changes in the current fiscal year
Balance at the end of current fiscal year
Valuation and translation adjustments
Net unrealized gains (losses) on available-for-sale securities, net of tax
Balance at the end of previous fiscal year
Changes in the current fiscal year
Net changes, excluding foundation funds and surplus
Total changes in the current fiscal year
Balance at the end of current fiscal year
Deferred valuation gains (losses) under hedge accounting
Balance at the end of previous fiscal year
Changes in the current fiscal year
Net changes, excluding foundation funds and surplus
Total changes in the current fiscal year
Balance at the end of current fiscal year
Revaluation reserve for land, net of tax
Balance at the end of previous fiscal year
Changes in the current fiscal year
Net changes, excluding foundation funds and surplus
Total changes in the current fiscal year
Balance at the end of current fiscal year
Total valuation and translation adjustments
Balance at the end of previous fiscal year
Changes in the current fiscal year
Net changes, excluding foundation funds and surplus
Total changes in the current fiscal year
Balance at the end of current fiscal year
Total net assets
Balance at the end of previous fiscal year
Changes in the current fiscal year
Financing of additional foundation funds
Additions to reserve for dividends to policyholders
Additions to accumulated foundation funds redeemed
Payment of interest on foundation funds
Net surplus for the year
Redemption of foundation funds
Reversal of reserve for redemption of foundation funds
Reversal of revaluation reserve for land
Net changes, excluding foundation funds and surplus
Total changes in the current fiscal year
Balance at the end of current fiscal year

- 26 -

Fukoku Mutual Life Insurance Company

8. Non-consolidated Statements of Surplus(Millions of Yen)
Year ended
March 31, 2009

Year ended
March 31, 2010

56,66054,075

7

7

7

7

Total

56,66754,083

Appropriation of surplus

28,772

25,460Reserve for dividends to policyholders

17,856

19,505Net surplus

10,916

5,954

Legal reserve for future losses

200

62

Interest payment for foundation funds

716

892

10,0005,000

10,0005,000

27,894

28,622

Unappropriated surplus
Reversal of voluntary surplus reserve
Reversal of reserve for advanced depreciation of realestate for tax purpose

Voluntary surplus reserve
Reserve for redemption of foundation funds
Unappropriated surplus carried forward

Note: Net surplus is calculated by deducting reserve for dividends to policyholders from the sum of unappropriatedsurplus and reversal of voluntary surplus reserve.

- 27 -

Fukoku Mutual Life Insurance Company

9. Disclosed Claims Based on Categories of Obligors(Millions of yen)
As of March 31, 2009 As of March 31, 2010
Claims against bankrupt and quasi-bankrupt obligors

637

819

Claims with collection risk

10,498

1,660

Claims for special attention−

166

Subtotal

11,1362,646[Percentage of total][0.89%][0.22%]

1,233,357

1,224,154

1,244,493

1,226,801

Claims against normal obligors
Total

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

- 28 -

Fukoku Mutual Life Insurance Company

10. Risk-monitored Loans(Millions of yen)
As of March 31, 2009 As of March 31, 2010
Credits to bankrupt borrowers

471

352

10,277

2,119

Delinquent loans past three months or more−−

Restructured loans

−

166

Total

10,7492,638[Percentage of total loans][0.87%][0.22%]

Delinquent loans

Notes: 1. For the credits of legally bankrupt borrowers and substantially bankrupt borrowers, the amounts
remaining after deductions of collateral value or the amounts collectible through the execution ofguarantees is written-off directly from the borrower’s balance as the estimated uncollectible amounts.
The amounts written-off related to credits to bankrupt borrowers were ¥66 million as of March 31, 2009and ¥8,097 million as of March 31, 2010. The amounts written-off related to delinquent loans were ¥78
million as of March 31, 2009 and ¥938 million as of March 31, 2010.
2. Credits to bankrupt borrowers represent loans which are subject to bankruptcy, corporate
reorganization or rehabilitation or other similar, including but not limited to foreign, proceedings.
Accruing interest of these loans is not recorded as income after determining that principal of or intereston these loans is unlikely to be collected due to the significant delay in repayment of principal orinterest payment or for some other reasons.
3. Delinquent loans are credits whose accruing interest is not recorded as income due to the same
reasons as described in note 2 above, and exclude credits to bankrupt borrowers and loans for whichinterest payments have been suspended and rescheduled to assist and support the borrowers in the
restructuring of their business.
4. Delinquent loans past three months or more are loans for which interest payment or repayment ofprincipal are delinquent for three months or more from the due date under the terms of the related loan
agreements, excluding those loans classified as credits to bankrupt borrowers and delinquent loans.
5. Restructured loans are loans for which certain concessions favorable to borrowers, such as interest
reduction or exemptions, rescheduling of due date of principal or interest payment, waiver of claim orother terms, have been negotiated for the purpose of assisting and supporting the borrowers in the
restructuring of their business. This category excludes loans classified as credits to bankrupt
borrowers, delinquent loans and delinquent loans past three months or more.

- 29 -

Fukoku Mutual Life Insurance Company

11. Solvency Margin Ratio(Millions of yen)

As of
As of
March 31, 2009 March 31, 2010
Total solvency margin(A)

533,712628,750

Foundation funds and surplus

135,748

141,571

Reserve for price fluctuation of securities

24,622

26,451

Contingency reserve

145,160

145,658

4,779

2,000

Net unrealized gains on available - for - sale securities x 90%(multiplied by 100% if losses)(55,611)

68,134

Net unrealized gains on real estate x 85%

125,897

88,973

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

94,391

97,609Qualifying subordinated debt

38,87037,406

Excluded items(10,000)(10,000)

Others29,85430,944

105,844

111,510

Allowance for possible loan losses

Total risk ( R1 + R8 ) 2 + (R2 + R3 + R7 )2 + R4

(B)

Insurance risk

R1

29,46829,032

3rd sector insurance risk

R8

9,360

9,433

Assumed investment yield risk

R2

19,11018,793

Investment risk

R376,44382,868Business risk

R4

2,687

2,802

Minimum guarantee risk

R7

15

12

1,008.4%

1,127.6%

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

Notes: 1. Above figures are calculated based on Articles 86 and 87 of the Enforcement Regulation of the Insurance Business Law and
Ministry of Finance Ordinance No. 50, 1996. ("Excess amount of policy reserve based on full-time Zilllmer method" is calculated
based on Article 1 Paragraph 3-1 of Ordinance No.50.)
2. "Excluded items" represent the capital increase to the subsidiary, Fukokushinrai Life Insurance Co., Ltd.
3. "Minimum guarantee risk" is calculated by standard method.

- 30 -

Fukoku Mutual Life Insurance Company

12. Status of Separate Account(1) Separate Account Assets by Products(Millions of yen)
As of
As of
March 31, 2009 March 31, 2010
AmountAmountIndividual variable insurance−−

Individual variable annuities

637

640

Group annuities

112,861

94,567

Total

113,498

95,207(2) Individual Variable Insurance (Separate Account)
The company has not sold the individual variable insurance.

(3) Individual Variable Annuities (Separate Account)(i) Policies in Force(Millions of yen except number of policies)
As of March 31, 2010
Number ofAmountpolicies

As of March 31, 2009
Number ofAmountpolicies
Individual variable annuities

209

764

196

667

(ii) Breakdown of Separate Account Assets for Individual Variable Annuities(Millions of yen)
As of March 31, 2010
AmountPercentage

As of March 31, 2009
AmountPercentage
Cash, deposits, call loans

122

19.1

105

16.4

Securities

515

80.9

534

83.6

Domestic bonds

−

−

−

−

Domestic stocks

−

−

−

−

Foreign securities

−

−

−

−

Foreign bonds

−

−

−

−

Foreign stocks and other securities

−

−

−

−

515

80.9

534

83.6

Loans

−

−

−

−

Others−−−−Allowance for possible loan losses

−

−

−

−

637

100.0

640

100.0

Other securities

Total- 31 -

Fukoku Mutual Life Insurance Company

(iii) Investment Income and Expenses of Separate Account for Individual Variable Annuities(Millions of yen)
Year ended March 31, 2009

Year ended March 31, 2010

AmountAmountInterest, dividends and other income

20Gains on sales of securities−−

Gains of redemption of securities−−

Gains on valuation of securities

15

123

Foreign exchange gains, net−−

Gains from derivative instruments−−

Other investment income−−

Losses on sales of securities

4

4

Losses on redemption of securities−−

Losses on valuation of securities

175

22

Foreign exchange losses, net−−

Losses from derivative instruments−−

Other investment expenses

−

−

(161)

98

Net investment income(iv) Fair Value Information on Securities in Separate Account for Individual Variable Annuities* Net Valuation Gains/Losses on Trading Securities(Millions of yen)
As of March 31, 2010

As of March 31, 2009

Trading securities

Carrying valueon the balancesheet

Net valuation
gains/losses
included in thestatementof operations

Carrying valueon the balancesheet

Net valuation
gains/losses
included in thestatementof operations

515

(159)

534

101

Note: The company has no balances of money held in trust and derivative instruments.

- 32 -

Fukoku Mutual Life Insurance Company

(reference) Fair Value Information on Securities (Total of General Account and Separate Account)
Net Valuation Gains/Losses on Trading Securities(Millions of yen)

Trading securities

As of March 31, 2009
Net valuation gains/losses
Carrying value on
included in the statementbalance sheetof operations(22,151)
171,944

As of March 31, 2010
Net valuation gains/losses
Carrying value on
included in the statementbalance sheetof operations
201,372
18,639Note: The table above includes money held in trust for trading purpose.

Fair Value Information on Securities (with fair value, other than trading securities)(Millions of yen)
As of March 31, 2009

As of March 31, 2010

Gains/losses

Fair value

809

430,883

433,717

2,834

5,212

2,377

4,332

36

382,130

383,997

1,866

4,110

2,243

71

845

773

48,75349,720

967

1,101

134

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

628,570644,212

15,641

16,131

489

639,749

657,551

17,801

18,125324

Fair value

152,157

156,525

4,368

5,177

Domestic bonds

113,032

117,328

4,296

Foreign bonds

39,12539,197

Monetary claims bought−

Negotiable certificate of deposits
OthersGains
Held-to-maturity debt securities

Policy-reserve-matching bonds

Gains/losses

Book value

Book value

Losses

Gains

Losses

1,393

954

(438)

−

438

1,393

933

(459)

−

459

2,678,173

2,622,561(55,611)

77,291

132,9032,440,492

2,516,197

75,704

121,21745,512

Domestic bonds

1,705,656

1,727,224

21,56828,906

7,338

1,530,802

1,544,097

13,294

21,898

8,603

Domestic stocks

403,395

385,582(17,813)45,49563,309362,224438,734

76,50991,174

14,665
19,367

Investments in subsidiaries and affiliates
Available-for-sale securities

Foreign securities

519,208

466,188(53,020)

2,388

55,408504,887

492,109(12,777)

6,589

Foreign bonds

328,436

306,869(21,567)

1,942

23,509323,137

318,842(4,295)

3,895

8,191

Foreign stocks and other securities

190,772

159,319(31,452)445

31,898

181,749

173,267(8,481)

2,693

11,175

Other securities

49,912

43,566(6,346)

501

6,847

42,577

41,256(1,321)

1,554

2,876

Money held in trust

−

−

−

−

−

−

−

−

−

−

Monetary claims bought

−

−

−

−

−

−

−

−

−

−

Negotiable certificate of deposits

−

−

−

−

−

−

−

−

−

−

Others

−

−

−

−

−

−

−

−

−

−

3,460,294

3,424,254(36,039)

98,600134,640

3,512,519

3,608,400

95,881

144,555

48,674

Domestic bonds

2,447,258

2,488,764

41,50649,3707,863

2,552,683

2,585,645

32,962

44,134

11,171

Domestic stocks

403,395

385,582(17,813)45,49563,309362,224438,734

76,50991,174

14,665

Foreign securities

559,727

506,341(53,386)

3,233

56,619555,033

542,763(12,269)

7,691

19,960Foreign bonds

367,562

346,066(21,495)

2,787

24,283371,891

368,562(3,328)

4,997

8,325

Foreign stocks and other securities

192,165

160,274(31,891)445

32,336

183,142

174,200(8,941)

2,693

11,634

Total

Other securities

49,912

43,566(6,346)

501

6,847

42,577

41,256(1,321)

1,554

2,876

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.

・ Held-to-maturity Debt Securities(Millions of yen)
As of March 31, 2009
Carrying
value on thebalancesheet

Securities whose fair value exceeds the
carrying value on the balance sheet

Fair value

As of March 31, 2010

Differences

Carrying
value on thebalance
sheet

Fair value

Differences

135,878

141,055

5,177

133,237

138,449

5,212

Domestic bonds

111,035

115,367

4,332

92,70996,8204,110Foreign bonds

24,84325,688845

40,527

41,629

1,101

Money claims bought

−

−

−

−

−

−

Negotiable certificate of deposits

−

−

−

−

−

−

Others

−

−

−

−

−

−

Securities whose fair value does not exceed
the carrying value on the balance sheet

16,27915,470(809)

297,646

295,268(2,377)

Domestic bonds

1,997

1,960

(36)

289,420

287,177(2,243)Foreign bonds

14,282

13,509

(773)

8,225

8,091

(134)

Money claims bought

−

−

−

−

−

−

Negotiable certificate of deposits

−

−

−

−

−

−

Others

−

−

−

−

−

−

- 33 -

Fukoku Mutual Life Insurance Company

・ Policy-reserve-matching Bonds(Millions of yen)
As of March 31, 2009

Bonds whose fair value exceeds the carrying
value on the balance sheet
Domestic bonds

As of March 31, 2010

Carrying
value on thebalance
sheet

Fair value

Differences

Carrying
value on thebalance
sheet

Fair value

Differences

588,803604,934

16,131

613,468

631,594

18,125588,803604,934

16,131

613,468

631,594

18,125

Foreign bonds

−

−

−

−

−

−

Others

−

−

−

−

−

−

Bonds whose fair value does not exceed thecarrying value on the balance sheet

39,76639,277(489)

26,28025,956(324)

39,76639,277(489)

26,28025,956(324)

Foreign bonds

−

−

−

−

−

−

Others

−

−

−

−

−

−

Domestic bonds

・ Available-for-sale Securities(Millions of yen)
As of March 31, 2009
Book value
Securities whose carrying value on thebalance sheet exceeds the book value

As of March 31, 2010

Carrying
Carrying
value on thevalue on the
Differences
Book
value
Differencesbalancebalance
sheet
sheet

1,391,255

1,468,547

77,291

1,249,403

1,370,621

121,217

Domestic bonds

1,173,416

1,202,322

28,906

744,823

766,721

21,898Domestic stocks

142,753

188,249

45,495

230,605

321,780

91,174Foreign securities

67,94270,3302,388

256,161

262,750

6,589

Foreign bonds

52,44754,3891,942

172,238

176,134

3,895

Foreign stocks

15,495

15,940445

83,922

86,615

2,693

7,143

7,644

501

17,81319,368

1,554

Money held in trust

−

−

−

−

−

−

Money claims bought

−

−

−

−

−

−

Negotiable certificate of deposits

−

−

−

−

−

−

Others

−

−

−

−

−

−
(45,512)

Other securities

Securities whose carrying value on thebalance sheet does not exceed the book value

1,286,917

1,154,014(132,903)

1,191,088

1,145,576

Domestic bonds

532,239

524,901(7,338)785,979

777,375(8,603)

Domestic stocks

260,641

197,332(63,309)

131,619

116,953(14,665)

Foreign securities

451,266

395,858(55,408)

248,725

229,358(19,367)

Foreign bonds

275,989

252,479(23,509)150,899

142,707(8,191)

Foreign stocks

175,277

143,378(31,898)

97,82686,651(11,175)

Other securities

42,76935,921(6,847)

24,764

21,888(2,876)

Money held in trust

−

−

−

−

−

−

Money claims bought

−

−

−

−

−

−

Negotiable certificate of deposits

−

−

−

−

−

−

Others

−

−

−

−

−

−

* Book value of securities whose market value are deemed extremely difficult to obtain are as follows:(Millions of yen)
As of March 31, 2009−

Held-to-maturity bonds

As of March 31, 2010−

Unlisted foreign bonds−−

Others−−−−Investments in subsidiaries and affiliates

26,132

26,132Available-for-sale securities

Policy-reserve-matching bonds

25,671

17,157

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

7,174

8,351

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

500

500

Unlisted foreign bonds
OthersTotal- 34 -−−

17,9968,306

51,80343,290

Fukoku Mutual Life Insurance Company

(reference) Fair Value Information on Derivative Instruments (Total of General Account and Separate Account)(i) Gains and Losses on Derivatives
As of March 31, 2009
Hedge accounting applied
Hedge accounting not applied
Total
As of March 31, 2010
Hedge accounting applied
Hedge accounting not applied
Total(Millions of yen)Interestrelated
751
−
751
Interestrelated
826
−
826

CurrencyStockBondrelated
related related
−
(954)
−
−
(2,393) (4,600)−(3,348) (4,600)
CurrencyStockBondrelated
related related−−(4,832)(93)
350(1,901)(93)
350(6,734)

Others

Total
−
−
−

(203)
(6,994)(7,197)
Total

Others−−−(4,006)(1,644)(5,650)Note: Gains and losses from applying fair value hedge accounting (currency- related, losses of \954 million as of March 31, 2009 and lossesof \4,832 million as of March 31, 2010) included in gains and losses with hedge accounting applied, and gains and losses with hedge
accounting not applied are reported in the statements of operations.

(ii) Hedge Accounting not Applied・ Interest-related Transactions
No ending balance as of March 31, 2009 and 2010.

- 35 -

Fukoku Mutual Life Insurance Company

・ Currency-related Transactions
As of March 31, 2009
Notional amount/
Fair
contract value
value
Over
1 yearOver-the-counter transactions
Currency forward contracts
Sold
US dollar
Euro
British pound
BoughtCurrency Options
Sold
Calls
[
Euro
[
US dollar[
Australian dollar[
Puts[
Bought
Calls
[
Puts
[
US dollar[
Euro[
Australian dollar[
Currency swap contracts
Australian dollar

87,56137,30350,247
9
−

−
−
−
−
−

61,583
653 ]
5,600
39 ]
43,449395 ]
12,534
219 ]
−
−]

−
861

(1,710)(37)(1,673)(0)−(207) [

−
27

12 [

−
232

162 [

−
601

(382) [−−−]
57,040653 ]
40,550
395 ]
5,090
39 ]
11,400
219 ]
4,000
4,000

89,271
37,341
51,9209−

Gains(losses)

−

− [

−

− [

−

76,897
39,83537,061
−
−

−
−
−
−
−

17,302173 ]
12,600
141 ]
4,702
32 ]
−
−]
−
−]

−

4

(214) [−−]
40,365375 ]
22,310164 ]18,055
211 ]
−
−]

(58)
(58)

(58)
(58)

4,000
4,000

−
237

(416) [−
191(203) [

−
41

1 [

−

4,000
4,000

(Millions of yen)
As of March 31, 2010
Notional amount/
Fair
Gains
contract value
value(losses)Over
1 yearTotal

78,40640,93237,473−−(1,509)(1,096)
(412)
−
−

211

(38)

131

9

79

(47)

−

−

−

−

−

−

53

(322)

13

(151)

39

(171)

−

−

(31)
(31)

(31)
(31)

−
−
−
−
−

−
−

−
−
−
−

(2,393)(1,901)

As of March 31, 2009
Notional amount/Gainscontract value
Fair value(losses)Over
1 year(Millions of yen)
As of March 31, 2010
Notional amount/Gainscontract value
Fair value(losses)Over
1 yearNotes: 1. Figures in [ ] are option premiums which are included in balance sheet.
2. Forward exchange rates are used for exchange rates as of the end of fiscal year.

・ Stock-related Transactions

Exchange-traded transactions
Yen stock index futures
Sold
BoughtYen stock index options
Sold
Calls
[
Puts
[
Bought
Calls
[
Puts
[

38,703
−

−
−

−
−]
−
−]

−

43,303−−(4,600)
−

− [

−

−
−]
−
−]

−

− [

−

− [

−
−
−

Total

− [

−
−

−
−

−
−]
−
−]

−

−
−]
9,500
93 ]

−
−

−
−

−

−

−

−

−

−

0

(93)

−
−
−

(4,600)(93)

As of March 31, 2009
Notional amount/Gainscontract value
Fair value(losses)Over
1 year(Millions of yen)
As of March 31, 2010
Notional amount/Gainscontract value
Fair value(losses)Over
1 yearNote: Figures in [ ] are option premiums which are included in balance sheet.

・ Bond-related Transactions

Exchange-traded transactions
Yen bond futures
Sold
Bought

−
−

−
−

−
−

−
−
−

Total

- 36 -

90,193−−−89,843
−

350
−
350

Fukoku Mutual Life Insurance Company

(iii) Hedge Accounting Applied・ Interest-related Transactions[As of March 31, 2009](Millions of yen)
Notional amount / contract valueOver 1 year

Method of
Hedging instruments
Hedged items
hedge accounting
Loans
Deferral hedge
Interest rate swap contracts
methodReceipt fixed, payment floating
Payment fixed, receipt floating
Total

71,0582,500

Fair value

66,738
2,500

789
(38)

1 year or shorter
Over 1 year to 3 years
4,320
44,623
1.26%
1.25%
1.24%
0.94%
2,500
−
1.05%
−
1.84%
−

(Millions of yen)Over 3 years
22,115
1.80%
1.27%
−
−
−

* Interest rate swap contracts by contractual maturity dates

Notional amount (receipts fixed, payments floating)
Average fixed rate (receipt)
Average floating rate (payment)
Notional amount (receipts floating, payments fixed)
Average floating rate (receipt)
Average fixed rate (payment)[As of March 31, 2010](Millions of yen)
Notional amount / contract valueOver 1 year

Method of
Hedging instruments
Hedged items
hedge accounting
Loans
Deferral hedge
Interest rate swap contracts
methodReceipt fixed, payment floating
Payment fixed, receipt floating
Total

62,3092,500

Fair value

40,180−857(30)

1 year or shorter
Over 1 year to 3 years
22,12927,070
1.14%
1.40%
0.55%
0.59%
2,500
−
0.67%
−
1.84%
−

Over 3 years
13,110
1.70%
0.79%
−
−
−

* Interest rate swap contracts by contractual maturity dates(Millions of yen)
Notional amount (receipts fixed, payments floating)
Average fixed rate (receipt)
Average floating rate (payment)
Notional amount (receipts floating, payments fixed)
Average floating rate (receipt)
Average fixed rate (payment)・ Currency-related Transactions[As of March 31, 2009]
Method of
Hedging instruments
hedge accounting
Fair value hedge
Currency forward contracts
methodSold
US dollar
Euro
Australian dollar
Bought(Millions of yen)
Hedged items
Foreigncurrencydenominatedbonds

Notional amount / contract valueOver 1 year
126,50987,022
39,487−−

Fair Value

−
−
−
−
−

127,464
87,881
39,582−−Total[As of March 31, 2010]
Method of
Hedging instruments
hedge accounting
Fair value hedge
Currency forward contracts
methodSold
US dollar
Euro
Australian dollar
Bought(Millions of yen)
Hedged items
Foreigncurrencydenominatedbonds

Notional amount / contract valueOver 1 year
146,367
102,089
28,26816,008−Fair Value

−
−
−
−
−

151,199
105,562
28,73016,907−

Total
Notes 1. Forward exchange rates are used for exchange rates as of the end of fiscal year.
2. Regarding assets and liabilities which are denominated in foreign currencies but have fixed settlement in yen under currency forward
contracts and are reported in yen amounts in the balance sheet, those currency forward contracts are excluded from the table above.

・ Stock-related Transactions
No ending balance as of March 31, 2009 and 2010.

・ Bond-related Transactions
No ending balance as of March 31, 2009 and 2010.

- 37 -

Fukoku Mutual Life Insurance Company