February 14, 2013

Financial Results for the Nine Months Ended December 31, 2012
Fukoku Mutual Life Insurance Company (President: Yoshiteru Yoneyama) announces financial results
for the nine months ended December 31, 2012.

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

P.1

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

P.3

3. Non-consolidated Balance Sheets…………………

P.6

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

P.7

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

P.9

6. Solvency Margin Ratio…………………

P.10

7. Status of Separate Account…………………

P.11

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

P.12

1. Business Highlights(1) Policies in Force, New Policies and Surrendered and Lapsed Policies(i) Policies in Force
As of March 31, 2012
Number of policies

As of December 31, 2012
Amount(Thousands)(100 millions of yen)

2,983

Individual insurance

Number of policies

Amount(Thousands)

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

2,995

100.4

251,21396.8

259,536770

29,989774

100.6

30,007

100.1

3,753

289,526

3,770

100.4

281,22197.1

Group insurance－

160,562－－

161,747100.7

Group annuities－

19,720－－19,795

100.4

Individual annuities
Subtotal

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

(ii) New Policies
Total
Nine months ended
December 31, 2011

New business

Net increase by
conversion

Number of policies

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

Individual insurance

298

10,231

11,715

Individual annuities

31

1,059

1,078

(19)

330

11,29012,793(1,502)

Group insurance

－

128

128

－

Group annuities

－

0

0

－

Subtotal

Total
Nine months ended
December 31, 2012

Number of policies(Thousands)

Net increase by
conversion

New businessAmountChanges(%, YoY)(100 millionsof yen)Amount(100 millionsof yen)Changes(%, YoY)(1,483)

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

Individual insurance

293

98.3

9,978

97.5

11,513

98.3(1,534)－

Individual annuities

25

81.3

878

82.9

900

83.5

(21)

－

319

96.7

10,85796.2

12,41497.0(1,556)－

Group insurance

－

－

152

118.8

152

118.8

－

－

Group annuities

－

－

91

13,030.4

91

13,030.4－－

Subtotal

Notes: 1. Number of new policies is the sum of new business and policies after conversion.
2. Amount of new policies for individual annuities, both new business and net increase by conversion, is equal to the funds to be 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)
Nine months ended
December 31, 2011

Nine months ended
December 31, 2012
Changes(%, YoY)

Amount of surrender and lapse(100 millions of yen)

12,35912,07997.7

Surrender and lapse ratio (%)

4.11

4.17

0.06

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

-1-

Fukoku Mutual Life Insurance Company

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

As ofMarch 31, 2012

As of
December 31, 2012
Changes(%, Pre-FYE)

Individual insurance

2,809

2,768

98.5

Individual annuities

1,302

1,319

101.3

Total

4,111

4,087

99.4

1,035

1,049

101.3

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

Nine months ended
December 31, 2011

Nine months ended
December 31, 2012
Changes(%, Pre-FYE)

Individual insurance

157

148

94.6

Individual annuities

46

36

78.8

Total

203

185

91.0

64

64

99.6

Medical coverage and living benefits

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

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

Nine months ended
December 31, 2011

Nine months ended
December 31, 2012
Changes(%, Pre-FYE)

Premium and other income

4,439

4,880

109.9

Investment income

1,082

1,153

106.5

Claims and other payments

3,687

4,080

110.7

Investment expenses

565

346

61.3

Ordinary profits

302

491

162.4

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

As ofMarch 31, 2012

As of
December 31, 2012
Changes(%, Pre-FYE)

Total assets

56,995-2-

58,506

102.7

Fukoku Mutual Life Insurance Company

2. Investment Results of General Account Assets(1) Asset Composition(Millions of yen)
As ofMarch 31, 2012
AmountCash, deposits, call loans

As ofDecember 31, 2012

Percentage

94,857

1.7

Monetary claims bought

1,351

Money held in trust

35,194

Securities

AmountPercentage

89,798

1.6

0.0

1,298

0.0

0.6

31,262

0.5

4,075,938

72.5

4,388,153

75.9

Domestic bonds

2,737,371

48.7

2,943,818

50.9

Domestic stocks

353,2486.3

361,313

6.3

Foreign securities

927,377

16.5

1,022,241

17.7

Foreign bonds

729,001

13.0

807,423

14.0

198,375

3.5

214,817

3.7

Foreign stocks and other securities
Other securities
Loans

57,9401.0

60,7791.1

1,039,363

18.5

907,598

15.7

Policy loans

70,164

1.2

66,895

1.2

Ordinary loans

969,19917.2

840,702

14.5

Real estate273,246

4.9

268,949

4.7

Deferred tax assets

47,1300.8

27,738

0.5

Others54,4821.0

66,366

1.1

Allowance for possible loan losses(2,299)(0.0)(2,176)(0.0)

5,619,265

100.0

5,778,989

100.0

770,441

13.7

887,306

15.4

Total
Foreign currency denominated assets-3-

Fukoku Mutual Life Insurance Company

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

As of March 31, 2012

As of December 31, 2012

Gains/losses

Book value

Fair value

823,530

852,343

28,812

29,263

Domestic bonds

777,527804,084

26,556

Foreign bonds

46,002

48,258

Monetary claims bought－

Negotiable certificate of deposits
OthersGains/losses

Book value

Fair value

450

820,579

861,242

40,663

40,663－

26,868311

772,684

810,20337,51937,519

－

2,256

2,394

138

47,89551,039

3,143

3,143

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

684,915722,269

37,35438,994

1,640

871,334

914,116

42,78245,123

2,341

Domestic bonds

669,991

707,41237,42038,971

1,550

850,521893,120

42,59844,9342,335

Foreign bonds

14,923

14,857

(66)

23

90

20,812

20,996

183

188

5

1,393

854

(538)

－

538

1,393

904

(488)

－

488
29,351Gains
Held-to-maturity debt securities

Policy-reserve-matching bonds

Investments in subsidiaries and affiliates
Available-for-sale securities

Losses

Gains

Losses2,202,478

2,300,260

97,782

135,997

38,2152,250,863

2,412,264

161,400

190,752

Domestic bonds

1,218,715

1,273,929

55,21358,002

2,788

1,228,113

1,297,084

68,97071,5282,558

Domestic stocks

268,766

309,191

40,42454,341

13,916

270,379

318,01447,63463,541

15,907

Foreign securities

663,501

666,928

3,426

21,996

18,569701,032

745,130

44,09852,751

8,652

Foreign bonds

458,405

469,945

11,54018,3406,800

491,473

531,705

40,23243,814

3,582

Foreign stocks and other securities

205,095

196,982(8,113)

3,656

11,769209,558

213,424

3,866

8,936

5,070

51,49450,211(1,283)

1,658

2,941

51,33752,034

696

2,930

2,233

Money held in trust

－

－

－

－

－

－

－

－

－

－

Monetary claims bought

－

－

－

－

－

－

－

－

－

－

Negotiable certificate of deposits

－

－

－

－

－

－

－

－

－

－

Others

－

－

－

－

－

－

－

－

－

－

3,712,316

3,875,727

163,410204,255

40,845

3,944,170

4,188,528

244,357

276,539

32,181

Domestic bonds

2,666,234

2,785,425

119,191

123,841

4,650

2,851,319

3,000,408

149,088

153,982

4,894

Domestic stocks

268,766

309,191

40,42454,341

13,916

270,379

318,01447,63463,541

15,907

Foreign securities

725,821730,898

5,077

24,415

19,337771,133

818,070

46,93756,0849,146

Foreign bonds

519,332

533,061

13,72920,7587,028

560,181603,741

43,55947,1473,588

Foreign stocks and other securities

206,489

197,836(8,652)

3,656

12,308210,951

214,329

3,377

8,936

5,558

51,49450,211(1,283)

1,658

2,941

51,33752,034

696

2,930

2,233

Money held in trust

－

－

－

－

－

－

－

－

－

－

Monetary claims bought

－

－

－

－

－

－

－

－

－

－

Negotiable certificate of deposits

－

－

－

－

－

－

－

－

－

－

Others

－

－

－

－

－

－

－

－

－

－

Other securities

Total

Other securities

Note: The table above includes assets which are considered appropriate to deem as securities under the Financial Instruments and Exchange Law.

* Book value of securities without fair value are as follows:(Millions of yen)
As ofDecember 31, 2012

As ofMarch 31, 2012
Held-to-maturity debt securities－－

Unlisted foreign bonds－－

Others－－－－Investments in subsidiaries and affiliates

35,96935,560Available-for-sale securities

15,816

16,483

8,086

7,738

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

Unlisted foreign bonds

－

－

7,729

8,745

51,78552,044

Policy-reserve-matching bonds

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

OthersTotal-4-

Fukoku Mutual Life Insurance Company

(3) Fair Value Information on Money Held in Trust(Millions of yen)
As of March 31, 2012
Carrying
value onbalancesheetsMoney held in trust

As of December 31, 2012
Carrying
value onbalancesheetsGains/losses
Fair value

35,194

Gains－

35,194Losses－－Gains/losses
Fair value

31,262

Gains－

31,262Losses－－* Money held in trust for trading purpose(Millions of yen)
As of March 31, 2012
Net valuation gains/losses
included in the statementsof operations

Carrying value onbalance sheets
Money held in trust
for trading purpose

As of December 31, 2012
Net valuation gains/losses
included in the statementsof operations

Carrying value onbalance sheets

34,194030,262274* Money held in trust classified as held-to-maturity, policy-reserve-matching and available-for-sale(Millions of yen)
As of March 31, 2012

As of December 31, 2012

Gains/losses

Book value Fair value

Gains

LossesGains/losses

Book value Fair value

Gains

LossesMoney held in trust
for held-to-maturity

－

－

－

－

－

－

－

－

－

－

Money held in trust
for policy-reserve-matching

－

－

－

－

－

－

－

－

－

－

Money held in trust
for available-for-sale

－

－

－

－

－

－

－

－

－

－

(reference) Fair Value of Real Estate (Land and Leaseholds)(Millions of yen)
As of March 31, 2012
Carrying value on
the balance sheets
161,252

Fair value
223,596

As of December 31, 2012
Gains(losses)

Carrying value on
the balance sheets

62,343160,997

Fair value
223,814Gains(losses)
62,816

Notes: 1. As of December 31, 2012, fair value is based on the appraisal value by the real-estate appraiser, the appraisal value for property tax
as of January 1, 2012 and the road rate as of January 1, 2012.
2. As of March 31, 2012, fair value is based on the appraisal value by the real-estate appraiser, the appraisal value for property tax
as of January 1, 2012 and the road rate as of January 1, 2011.

-5-

Fukoku Mutual Life Insurance Company

Notes: 1. A
as
2. As
as

3. Non-consolidated Balance Sheets(Millions of yen)
As of March 31, 2012

As of December 31, 2012

Assets:Cash and deposits

29,34528,298Call loans

65,60061,600

Monetary claims bought

1,351

1,298

Money held in trust

35,19431,262

Securities

4,148,127

4,458,994[1,991,905][2,160,797][Local government bonds][158,459][167,495][Corporate bonds][614,449][644,689][Stocks][377,385][383,992][Foreign securities][947,574][1,040,877]

1,039,363

907,598[Government bonds]

Loans
Policy loans

70,164

66,895

Ordinary loans

969,199

840,702

Tangible fixed assets

276,619

273,375

Intangible fixed assets

8,573

9,383

Reinsurance receivables

117

52

Other assets

50,40453,195

Deferred tax assets

47,13027,738

Allowance for possible loan losses(2,299)(2,176)

5,699,527

5,850,622

Total assets

As of March 31, 2012

As of December 31, 2012

Liabilities:
Policy reserves

5,266,726

Reserve for outstanding claims
Policy reserve
Reserve for dividends to policyholders
Reinsurance payables

5,312,379

22,615

19,906

5,190,141

5,231,733

53,96960,74067

96Subordinated bonds

32,89664,378Other liabilities

48,37764,549Corporate income tax payable

1,291

5,242

Asset retirement obligations

2,846

2,891

Other liabilities

44,23856,415Reserve for employees' retirement benefits

46,32045,447

Reserve for price fluctuation of securities

35,48837,093

Deferred tax liabilities for revaluation reserve for land

16,195

16,1635,446,071

5,540,108

Foundation funds

35,00035,000

Accumulated foundation funds redeemed

71,00071,000Total liabilities
Net assets:

Reserve for revaluation
Surplus

112

112

76,10489,062

Legal reserve for future losses

2,325

2,399

Other surplus

73,77986,662

－
3,895

9,000

Reserve for dividend allowances
Accumulated fund for price fluctuation

11,00011,000Reserve for advanced depreciation of real estate for tax purpose

289

4,114

Other reserves

767

767

57,82757,885

Total foundation funds, surplus and others

182,216

195,174

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

67,684

111,721

Reserve for redemption of foundation funds

Unappropriated surplus

Deferred valuation gains (losses) under hedge accounting

3,895

170

88

3,383

3,529

Total valuation and translation adjustments

71,239115,339

Total net assets

253,455

310,513

5,699,527

5,850,622

Revaluation reserve for land, net of tax

Total liabilities and net assets-6-

Fukoku Mutual Life Insurance Company

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

Nine months ended

December 31, 2011

December 31, 2012

Ordinary revenues:
Premium and other income

443,960

488,050[Premium income][443,757][487,741]

Investment income

108,232

115,304[Interest, dividends and other income][82,312][84,771][Gains from money held in trust, net][－]

[1,125][20,501][Gains on sales of securities][－][15,488][Gains from derivative instruments, net]

[9,956][－][－][2,062]

18,676

10,044[Gains from trading securities, net]

[Gains from separate accounts, net]
Other ordinary revenues[Reversal of reserve for outstanding claims]
Total ordinary revenues[5,630][10,666][2,708]570,869

613,399

Ordinary expenditures:
Claims and other payments

368,737

408,031[Claims][113,009][144,153][Annuities][71,882][73,386][Benefits][93,191][96,674][Surrenders][70,462][69,509][Other payments][19,981][24,064]

35,04741,64534,983

41,591

Provision for policy reserve and others
Provision for policy reserve

63

53

Investment expenses

Interest on accumulated dividends to policyholders

56,51534,634[Interest expenses][990][1,139][Losses from money held in trust, net]

[950]

[－]

[Losses from trading securities, net]

[3,575][Losses on sales of securities][11,925][－][7,208][Losses on valuation of securities][21,868][1,082][Losses from derivative instruments, net][－]
[5,654][17,089][Losses from separate accounts, net]
Operating expenses

65,257[－]65,278Other ordinary expenditures

15,016

14,612

Total ordinary expenditures

540,573564,201

Ordinary profits

30,29649,197Extraordinary gains:
Gains on disposal of fixed assets

4,645

21

Other extraordinary gains

－
4,645

193

Total extraordinary gains

214

Extraordinary losses:
Losses on disposal of fixed assets

115

99

Impairment losses

320

283

1,551

1,605

9

Provision for reserve for price fluctuation of securities
Total extraordinary losses

1,996

－
1,987

Surplus before income taxes

32,94447,424

7,768

9,890

Losses on reduction entry of real estate for tax purpose

Income taxes:
Current
Deferred
Total income taxes
Net surplus for the period-7-11,526(193)

19,295

9,697

13,64937,727

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 Sheet
1. Changes in Presentation
Effective for the nine months ended December 31, 2012, the Company has changed its depreciation
method for its tangible fixed assets acquired on or after April 1, 2012 in accordance with the revision of
the Corporation Tax Act.
As a result, non-consolidated ordinary revenue and surplus before income taxes for the ninemonths ended December 31, 2012, increased by ¥ 12 million, both compared to those calculatedusing the previous depreciation method.
2. Securities lent under lending agreements
The amount of securities lent under lending agreements was ¥ 42,274 million as of December 31,
2012.
3. Reserve for Dividends to Policyholders
Changes in reserve for dividends to policyholders for the nine months ended December 31, 2012 wereas follows:(Millions of yen)
Balance at the beginning of current period .................
Transfer from surplus in previous fiscal year ..............
Dividends paid in the current period ...........................
Increase in interest .....................................................
Balance at the end of current period ..........................

-8-¥ 53,969
23,989(17,272)53¥ 60,740

Fukoku Mutual Life Insurance Company

5. Breakdown of Ordinary Profits (Fundamental Profit)
Nine months ended
December 31, 2011

(Millions of yen)
Nine months ended
December 31, 2012

A

51,80253,023

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
Non-recurring gains
Reinsurance income
Reversal of contingency reserve
Reversal for specific allowannce for possible loan losses
Other non-recurring gains
Non-recurring losses
Reinsurance premiums
Provision for contingency reserve
Provision for specific allowance for possible loan losses
Allowance for specified overseas loans
Write-off of loans
Other non-recurring losses
Non-recurring gains (losses)
C
Ordinary profits
A+B+C

25,445－－
15,4889,956－－
46,532
1,065
9,140
11,925
21,868－2,532－(21,087)
30,715
－
－
－
－
－
418
－
70
96
－
－
251
(418)
30,296

21,829938
15,130
5,630
－
130
－
25,380
－
－
7,208
1,082
17,089－－(3,550)49,472
4
－
－
4
－
279
－
279
－
－
－
－
(274)
49,197

Fundamental profit

Notes: 1. The following amounts in respect of gains / losses from money held in trust have been excluded from capital gains / losses andincluded in fundamental profit due to their income nature (being interest and dividend income): ¥114 million in respect of the ninemonths ended December 31, 2011 and ¥187 million in respect of the nine months ended December 31, 2012.
2. The following amounts in respect of gains / losses from trading securities have been excluded from capital gains / losses andincluded in fundamental profit due to the their income nature (being interest and dividend income): ¥5,565 million in respect of
the nine months ended December 31, 2011 and ¥5,371 million in respect of the nine months ended December 31, 2012.
3. For the nine months ended December 31, 2011, other non-recurring losses represent the losses relating to revision of theCompany's retirement benefit plans.

-9-

Fukoku Mutual Life Insurance Company

6. Solvency Margin Ratio(Millions of yen)

As ofMarch 31, 2012

As of
December 31, 2012

642,235

763,826

Foundation funds and surplus

156,393

175,295

Reserve for price fluctuation of securities

35,48837,093

Contingency reserve

146,187

146,466

Allowance for possible loan losses

1,761

1,762

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

88,004145,260

Net unrealized gains on real estate x 85%

67,494

66,775

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

113,157

120,303

Qualifying subordinated debt

32,89664,378－－Deductible items(19,000)(19,000)

Others19,851

25,491

173,308

178,666

Total solvency margin(A)

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

Total amount of risk

( R1  R8 )2  R2  R3  R7   R4
2

(B)

Insurance risk

R1

27,63027,090

3rd sector insurance risk

R8

9,568

9,612

Assumed investment yield risk

R242,266

41,813

Minimum guarantee risk

R7

5

3

Investment risk

R3

122,852

128,800

Business risk

R4

4,046

4,146

741.1%

855.0%

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.
2. "Deductible items" represent the capital increase to the subsidiary, Fukokushinrai Life Insurance Co., Ltd.
3. "Minimum guarantee risk" is calculated by standard method.

- 10 -

Fukoku Mutual Life Insurance Company

7. Status of Separate Account(1) Separate Account Assets by Products
As of March 31, 2012

(Millions of yen)
As of December 31, 2012

AmountAmountIndividual variable insurance－－

Individual variable annuities

500

460

Group annuities

81,552

72,474

Total

82,05372,935(2)Policies in Force(i) Individual Variable Insurance
The company has not sold the individual variable insurance.

(ii) Individual Variable Annuities
As of March 31, 2012
NumberAmount(Millions of yen)
As of December 31, 2012
NumberAmountIndividual annuities

174

551

159

507

Total

174

551

159

507

- 11 -

Fukoku Mutual Life Insurance Company

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

(Millions of yen)
Nine months ended
December 31, 2011

Nine months ended
December 31, 2012

Ordinary revenues

894,538

790,744

Ordinary profits

32,16752,059Net surplus for the period

13,467

38,248Comprehensive income

25,31982,980As ofMarch 31, 2012

Total assets

As ofDecember 31, 2012

7,033,729

7,333,906

763.4%

875.1%

Solvency Margin Ratio(2) Scope of consolidation and application of equity method
Number of consolidated subsidiaries: 5

Number of unconsolidated subsidiaries accounted for under the equity method: 0
Number of affiliates accounted for under the equity method: 0
Changes in the number of consolidated subsidiaries during the current period:
decrease 1 (Fukoku Shinyo Hosho Company Limited.)- 12 -

Fukoku Mutual Life Insurance Company

(3) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2012

As of December 31, 2012

Assets:Cash and deposits

73,26069,353

Call loans

65,60061,600

Monetary claims bought

1,351

1,298

Money held in trust

35,19431,262

Securities

5,422,669

5,883,404

Loans

1,042,359

910,763

Tangible fixed assets

276,828

273,695

Intangible fixed assets

14,52916,881

Agency receivables

7

2

123

81

Other assets

56,06259,306

Deferred tax assets

48,211

28,431

Allowance for possible loan losses(2,468)(2,176)

7,033,729

7,333,906

Reinsurance receivables

Total assets

As of March 31, 2012

As of December 31, 2012

Liabilities:
Policy reserves

6,589,577

Reserve for outstanding claims

6,778,966

24,14921,3846,510,809

6,696,243

53,96960,740648

598

Agency payables

560

395

Reinsurance payables

88

130

Subordinated bonds

32,89664,378Other liabilities

50,59370,607

Reserve for employees' retirement benefits

46,38445,528Reserve for price fluctuation of securities

38,18340,007

Deferred tax liabilities for revaluation reserve for land

16,195

16,1636,774,480

7,016,178

Foundation funds

35,00035,000

Accumulated foundation funds redeemed

71,00071,000

Policy reserve
Reserve for dividends to policyholders
Reserve for dividends to policyholders (subsidiary)

Total liabilities
Net assets:

Reserve for revaluation

112

112

Consolidated surplus

77,18390,782

Total foundation funds, surplus and others

183,295

196,894

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

68,806113,273

170

88

Revaluation reserve for land, net of tax

3,383

3,529

Foreign currency translation adjustment

(828)

(786)

Total accumulated other comprehensive income

71,532

116,105

Minority interests

4,421

4,728

Total net assets

259,249

317,727

7,033,729

7,333,906

Total liabilities and net assets- 13 -

Fukoku Mutual Life Insurance Company

(4) Consolidated Statements of Operations and Comprehensive Income[Consolidated Statements of Operations](Millions of yen)
Nine months ended
December 31, 2011

Ordinary revenues:
Premium and other income
Investment income[Interest, dividends and other income][Gains from money held in trust, net]
[Gains from trading securities, net]
[Gains on sales of securities][Gains from derivative instruments, net]
[Gains from separate accounts, net]
Other ordinary revenues[Reversal of reserve for outstanding claims]
Total ordinary revenues
Ordinary expenditures:
Claims and other payments[Claims][Annuities][Benefits][Surrenders][Other payments]
Provision for policy reserve and others
Provision for policy reserve
Interest on accumulated dividends to policyholders
Interest on accumulated dividends to policyholders (subsidiary)
Investment expenses[Interest expenses][Losses 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]
[Losses from separate accounts, net]
Operating expenses
Other ordinary expenditures
Total ordinary expenditures
Ordinary profits
Extraordinary gains:
Gains on disposal of fixed assets
Gain on change in equity
Total extraordinary gains
Extraordinary losses:
Losses on disposal of fixed assets
Impairment losses
Provision for reserve for price fluctuation of securities

Losses on reduction entry of real estate for tax purpose
Other extraordinary losses
Total extraordinary losses
Provision for reserve for dividends to policyholders (subsidiary)
Surplus before income taxes
Income taxes:
Current
Deferred
Total income taxes
Net surplus before minority interests
Minority interests
Net surplus for the period- 14 -

751,984
123,327[95,389][－][－][17,535][9,956][－]
19,226[10,624]
894,538
385,331[114,656][72,041][97,583][80,503][20,204]
324,067
324,00363
058,784[1,001][950][3,575][13,328][23,105][－][5,654]
77,12817,058862,371
32,167

Nine months ended
December 31, 2012

649,111
131,013[100,114][1,125][20,501][6,002][－][2,062]
10,620[2,764]
790,744429,727[145,853][73,580][101,774][83,795][24,354]
185,487
185,43353
0
34,248[1,156][－][－][7,401][1,082][17,089][－]
72,93916,281
738,684
52,059

4,645
55
4,700

21

116
320
1,738
9

146
283
1,824

－
21

－
2,184
349
34,333

－
2
2,255
327
49,497

8,626
12,01920,646
13,686
218
13,467

10,986
4
10,991
38,506258
38,248

Fukoku Mutual Life Insurance Company

(4) Consolidated Statements of Operations and Comprehensive Income (Continued)[Consolidated Statements of Comprehensive Income](Millions of yen)
Nine months ended
December 31, 2011

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

Deferred valuation gains (losses) under hedge accounting
Revaluation reserve for land, net of tax
Foreign currency translation adjustment
Comprehensive income
Comprehensive income attributable to parent company
Comprehensive income attributable to minority interests- 15 -

13,686
11,633
8,979
(125)
2,854
(74)
25,31924,966353

Nine months ended
December 31, 2012

38,50644,47444,527(82)(12)
41
82,98082,662
318

Fukoku Mutual Life Insurance Company

Notes to the Consolidated Financial Statements
I. Presentation of the Consolidated Financial Statements
1. Basis of Presentation
The accompanying consolidated financial statements have been prepared from the accounts
maintained by Fukoku Mutual Life Insurance Company (the “Company”) and its consolidated
subsidiaries in accordance with the provisions set forth in the Insurance Business Law of Japan and its
related rules and regulations and in conformity with accounting principles generally accepted in Japan,
which are different in certain respects from accounting principles generally accepted in countries andjurisdictions other than Japan.
In addition, the notes to the 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 Sheet
1. Changes in Presentation
Effective for the nine months ended December 31, 2012, the Company and its domestic consolidated
subsidiaries have changed their depreciation method for their tangible fixed assets acquired on or after
April 1, 2012 in accordance with the revision of the Corporation Tax Act.
As a result, consolidated ordinary revenue and surplus before income taxes for the nine months
ended December 31, 2012, increased by ¥ 16 million, both compared to those calculated using theprevious depreciation method.
2. Securities lent under lending agreements
The amount of securities lent under lending agreements was ¥ 42,274 million as of December 31,
2012.
3. Reserve for Dividends to Policyholders
Changes in reserve for dividends to policyholders for the nine months ended December 31, 2012 wereas follows:(Millions of yen)
Balance at the beginning of current period .................
Transfer from surplus in previous fiscal year ..............
Dividends paid in the current period ...........................
Increase in interest .....................................................
Balance at the end of current period ..........................

-16-¥ 53,969
23,989(17,272)53¥ 60,740

Fukoku Mutual Life Insurance Company

4. Reserve for Dividends to Policyholders (Fukokushinrai Life Insurance Company)
Changes in reserve for dividends to policyholders for the nine months ended December 31, 2012 wereas follows:(Millions of yen)
Balance at the beginning of current period .................
Dividends paid in the current period ...........................
Increase in interest .....................................................
Provision for reserve for dividends to policyholders ...
Balance at the end of current period ..........................

¥648
(377)
0
327
¥598

III. Notes to Statement of Operations
1. Depreciation and Amortization of Goodwill
For the nine months ended December 31, 2012, the total amount of depreciation and depreciation ofreal estate for rent and other assets was ¥9,186 million and the amount of amortization of goodwill
was ¥572 million.

-17-

Fukoku Mutual Life Insurance Company

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

As ofMarch 31, 2012
Total solvency margin

(A)

As of
December 31, 2012

671,498

796,067

Common stock and others

157,889

178,207

Reserve for price fluctuation of securities

38,18340,007

Contingency reserve

147,687

148,070－－

Allowance for possible loan losses

1,874

1,762

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

90,058147,952

Net unrealized gains on real estate x 85%

67,494

66,775

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

115,308

122,313

Qualifying subordinated debt

Catastrophe loss reserve

32,89664,378The amount of "excess amount of policy reserve based on full-time Zillmer method" and "qualifying
subordinated debt" excluded from the calculation of solvency margin－－

Deductible items－－

20,105

26,599

175,909

181,926

OthersTotal amount of risk

( R1  R5  R8  R9 )2  ( R2  R3  R7 )2  R4  R6
2

(B)

2

Insurance risk

R1

28,22927,690General insurance risk

R5

－

－

Catastrophe risk

R6

－

－

3rd sector insurance risk

R8

9,689

9,730

Small amount and short-term insurance risk

R9

－

－

Assumed investment yield risk

R242,61842,180

Minimum guarantee risk

R7

5

3

Investment risk

R3

124,939

131,534

Business risk

R4

4,109

4,222

763.4%

875.1%

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

Notes: 1. Above figures are calculated based on Articles 86 and 88 of the Enforcement Regulation of the Insurance Business Law and
Ministry of Finance Ordinance No. 23, 2011.
2. "Minimum guarantee risk" is calculated by standard method.

- 18 -

Fukoku Mutual Life Insurance Company