May 23, 2024

Financial Results for the Fiscal Year Ended March 31, 2024
Fukoku Mutual Life Insurance Company (President: Yoshiteru Yoneyama) announces
financial results for the fiscal year ended March 31, 2024.

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

P. 1

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

P. 3

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

P.11

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

P.12

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

P.27

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

P.28

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

P.30

8. Disclosed Claims Based on Insurance Business Act…………………………….

P.31

9. Solvency Margin Ratio ………………………….…………………………………..

P.32

10. Status of Separate Account …………………………….……………………………

P.33

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

P.40

Attached: Supplementary Materials for the Fiscal Year Ended March 31, 2024

Fukoku Mutual Life Insurance Company

Financial Summary for the Fiscal Year Ended March 31, 2024
1. Business Highlights(1) Policies in Force, New Policies and Surrendered and Lapsed Policies(i) Policies in Force
As of March 31, 2023
Number of policies(Thousands)

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

3,159

99.8

Individual annuities

562

96.3

3,722

Group insuranceGroup annuities

Subtotal

As of March 31, 2024

AmountNumber of policies

Changes(%, Pre-FYE)(Thousands)

221,734

99.1

21,722

95.7

99.3

243,456

—

—

—

—

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

3,130

99.1

216,885

97.8

539

95.9

20,698

95.3

98.8

3,669

98.6

237,583

97.6

172,790

99.6

—

—

173,972

100.7

23,048

100.7

—

—

23,306101.1

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 annuity payments have not yet commenced and (b) the amount of policy reserve for an annuity for which
payments have commenced and (c) special riders for term insurance attached to individual annuities.
Notes: 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, 2023

Number of policies(Thousands)

AmountChanges(%, YoY)

Net increase by
conversion

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

Individual insurance

323

94.1

13,89986.9

11,023

90.4

2,875

75.7

Individual annuities

6

87.5

198

88.6

206

88.8

(8)

—

330

93.9

14,097

86.9

11,230

90.3

2,867

75.6

SubtotalGroup insurance

—

—

116

73.5

116

73.5

—

—

Group annuities

—

—

164

1,659.4

164

1,659.4

—

—

Total
Year ended March 31, 2024

Number of policies(Thousands)

AmountChanges(%, YoY)

Net increase by
conversion

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

Individual insurance

340

105.1

11,502

82.8

10,701

97.1

800

27.8

Individual annuities

5

85.8

164

83.3

172

83.6

(7)

—

Subtotal

346

104.7

11,666

82.8

10,874

96.8

792

27.7

Group insurance

—

—

821

704.6

821

704.6

—

—

Group annuities

—

—

0

0.1

0

0.1

—

—

Notes: 1. Number of new policies is the sum of new business and policies after conversion.
Notes: 2. Amount of new policies for individual annuities, both new business and net increase by conversion, is equal to the funds to be heldat the time annuity payments are to commence and special riders for term insurance attached to individual annuities.
Notes: 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, 2023

Year ended
March 31, 2024

Changes(%, YoY)

Changes(%, YoY)

Amount of surrender andlapse (100 millions of yen)

11,064

98.3

11,552

104.4

Surrender and lapse ratio (%)

4.49(0.06)

4.75

0.26

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

1

Fukoku Mutual Life Insurance Company

(2) Annualized Premiums(i) Policies in Force(100 millions of yen, %)As of March 31, 2023

As of March 31, 2024

Changes(%, Pre-FYE)

Changes(%, Pre-FYE)

Individual insurance

2,629

99.7

2,609

99.2

Individual annuities

1,066

97.5

1,038

97.4

Total

3,695

99.0

3,648

98.7

1,164

100.9

1,167

100.2

Medical coverage and living benefits(ii) New Policies(100 millions of yen, %)Year ended March 31, 2023

Year ended March 31, 2024

Changes(%, YoY)

Changes(%, YoY)

Individual insurance

136

105.7

136

100.3

Individual annuities

5

87.9

4

83.4

141

104.9

141

99.6

70

99.9

65

94.0

Total
Medical coverage and living benefits

Notes: 1. Annualized premiums are calculated by using coefficients based on the premium payment method. (Forsingle 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, in which disability cause is excluded
but causes such as specific illness are included.
Notes: 3. New policies include net increase by conversion.

(3) Selected Items of Statements of Operations(100 millions of yen, %)Year ended March 31, 2023

Year ended March 31, 2024

Changes(%, YoY)

Changes(%, YoY)

Premium and other income

5,260

108.1

4,914

93.4

Investment income

2,346

120.8

2,731

116.4

Claims and other payments

5,047

121.3

4,658

92.3

Investment expenses

910

210.2

867

95.2

Ordinary profits

325

83.9

493

151.8

(4) Statements of Surplus(100 millions of yen, %)Year ended March 31, 2023

Year ended March 31, 2024

Changes(%, YoY)

Changes(%, YoY)

Unappropriated surplus

543

95.2

635

116.9

Reserve for dividends to policyholders

280

91.1

371

132.6

Net surplus

25

99.7

26

101.0

Unappropriated surplus carried forward

237

100.0

237

100.0

Note: Unappropriated surplus for the years ended March 31, 2023 and 2024 included reversal of voluntary surplus
reserve of ¥1 million and ¥1 million, respectively.

(5) Total Assets(100 millions of yen, %)As of March 31, 2023

As of March 31, 2024

Changes(%, Pre-FYE)

Total assets

72,26297.8

2Changes(%, Pre-FYE)

76,418

105.8

Fukoku Mutual Life Insurance Company

2. Investment Results of General Account Assets(1) Asset Composition(Millions of yen, %)As of March 31, 2023

As of March 31, 2024

AmountAmount% of total

525,043

Cash, deposits, and call loans

7.4 %% of total

435,624

5.8 %

—

—

—

—

25,8970.4

23,502

0.3

5,692,461

80.1

6,219,323

82.8

Domestic bonds

3,003,156

42.3

2,933,981

39.1

Domestic stocks

808,83111.4

997,497

13.3

Foreign securities

1,705,027

24.0

2,070,200

27.6

Foreign bonds

1,194,387

16.8

1,445,869

19.3

510,6397.2

624,3318.3

175,4452.5

217,6442.9

524,193

7.4

499,793

6.7

Policy loans

47,0880.7

45,991

0.6

Ordinary loans

477,104

6.7

453,802

6.0

Real estate

242,980

3.4

251,508

3.3

Deferred tax assets

13,8290.2——

Others

83,918

1.2

81,036

1.1

(826)

(0.0)

(703)

(0.0)

7,107,497

100.0

7,510,086

100.0

1,802,337

25.4

2,065,852

27.5

Monetary claims bought
Money held in trust
Securities

Foreign stocks and other securities
Other securities
Loans

Allowance for possible loan losses
Total
Foreign currency denominated assets

Note: The amount of real estate is equal to the amounts of land, buildings, and construction in progress.

(2) Changes (Increase/Decrease) in Assets(Millions of yen)

Year ended March 31, 2023

Cash, deposits, and call loans

Year ended March 31, 2024

322,583(89,419)

Monetary claims bought

(80)

—

Money held in trust(172)(2,395)(481,068)

526,862

Domestic bonds

118,675(69,175)

Domestic stocks

39,877

188,665

Foreign securities(630,924)

365,173

Foreign bonds(629,047)

251,481(1,876)113,691(8,697)42,198(29,112)(24,399)

Policy loans(1,541)(1,097)

Ordinary loans(27,571)(23,301)

Real estate

1,815

8,528

Deferred tax assets

13,829(13,829)

Others

1,193(2,882)

Allowance for possible loan losses

1,689

123

(169,323)

402,588(826,729)

263,514

Securities

Foreign stocks and other securities
Other securities
Loans

Total
Foreign currency denominated assets

3

Fukoku Mutual Life Insurance Company

(3) Investment Income(Millions of yen)

Year ended March 31, 2023

Interest, dividends and other income

Year ended March 31, 2024

164,768

172,1573

3

136,893

143,193

Interest on loans

8,237

8,896

Income from real estate for rent

19,292

19,833

Other interest and dividends

343

229

Gains on money held in trust, net

—

1,185

Gains on trading securities, net

348

803

54,756

66,405

Gains on sales of domestic bonds

7,576

4,527

Gains on sales of domestic stocks

16,94646,314

Gains on sales of foreign securities

30,203

15,564

Other gains on sales of securities

29—

Gains on redemption of securities, net

11,702

2,508

Foreign exchange gains, net

—

2,525

Reversal of allowance for possible loan losses

624

117

Other investment income

322

321

232,523

246,024

Interest on deposits
Interest and dividends on securities

Gains on sales of securities

Total(4) Investment Expenses(Millions of yen)

Year ended March 31, 2023

Interest expenses

Year ended March 31, 2024

4,469

4,245

161

—

46,16956,613Losses on sales of domestic bonds

10,73230,091

Losses on sales of domestic stocks

339

803

Losses on sales of foreign securities

34,77725,719Other losses on sales of securities

319

—

3,608

1,089

Losses on valuation of domestic bonds

593

262

Losses on valuation of domestic stocks

610

513

Losses on valuation of foreign securities

2,403

312

Losses on redemption of securities, net

185

137

Losses on derivative instruments, net

11,221

7,349

Foreign exchange losses, net

8,231

—

Depreciation of real estate for rent and other assets

4,850

5,163

Other investment expenses

12,185

12,117

Total

91,08386,716

Losses on money held in trust, net
Losses on sales of securities

Losses on valuation of securities(5) Net Investment Income(Millions of yen)

Year ended March 31, 2023

Net investment income

141,439

4

Year ended March 31, 2024

159,308

Fukoku Mutual Life Insurance Company

(6) Other Information on Investments(i) Investment Yield by Asset Categories( %)Year ended March 31, 2023

Year ended March 31, 2024

Cash, deposits, and call loans

0.00

0.00

Monetary claims bought(4.02)—

Money held in trust(0.62)

5.22

Securities

2.46

2.83

Domestic bonds

1.43

0.74

Domestic stocks

8.48

15.70

Foreign securities

2.71

3.14

Foreign bonds

1.48

1.66

Foreign stocks and other securities

7.21

7.45

1.52

1.47

1.31

1.26

2.53

2.79

Loans
Ordinary loans
Real estate
Total
Overseas investments

2.11

2.37

2.51

3.26

Notes: 1. Investment yield above are calculated by dividing the net investment income by the average daily balance ona book value basis.
Notes: 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, 2023

Year ended March 31, 2024

236,914410,132

34—

26,06922,701

5,394,128

5,253,911

Domestic bonds

2,964,735

3,034,447

Domestic stocks

413,423

420,330

Foreign securities

1,860,692

1,637,604

Foreign bonds

1,461,370

1,217,899

399,321419,704

545,127

518,302497,217

471,732

242,567

247,301

6,708,497

6,715,749

2,141,945

1,798,907

Cash, deposits, and call loans
Monetary claims bought
Money held in trust
Securities

Foreign stocks and other securities
Loans
Ordinary loans
Real estate
Total
Overseas investments

5

Fukoku Mutual Life Insurance Company

(iii) Net Valuation Gains/Losses on Trading Securities(Millions of yen)

As of March 31, 2023
As of March 31, 2024
Carrying value on the Net valuation gains/losses included Carrying value on the Net valuation gains/losses included
balance sheet
in the statement of operationsbalance sheet
in the statement of operations
Trading securities

35,130(653)

22,502

1,135

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

(iv) Fair Value Information on Securities (other than trading securities)(Millions of yen)Held-to-maturity debt securities
Domestic bonds

As of March 31, 2023
Gains/Losses
Book value Fair value
Gains738,300
808,660
70,36070,424As of March 31, 2024
Gains/Losses
Book value Fair value
LossesGains
64708,320759,424
51,104
51,104Losses－738,300

808,660

70,36070,42464

708,320759,424

51,104

51,104－Foreign bonds

—

—

—

—

—

—

—

—

—

—

Policy-reserve-matching bonds

—

—

—

—

—

290,573

283,026

7,877

—

—

—

—

—

290,573

283,026(7,546)(7,546)

331

Domestic bonds

331

7,877

Foreign bonds

—

—

—

—

—

—

—

—

—

—

Investments in subsidiaries and affiliates

—

—

—

—

—

—

—

—

—

—

Available-for-sale securities

4,307,988

4,839,472

531,484

676,027

144,543

4,195,706

5,103,160

907,454 1,055,739

148,285

Domestic bonds

2,246,987

2,264,856

17,86899,271

81,402

1,987,603

1,935,087(52,516)

82,679135,195

Domestic stocks

352,575

739,891

387,316

389,227

1,911

346,904

928,443

581,539

582,045506

Foreign securities

1,574,356

1,675,753

101,396

160,374

58,977

1,717,017

2,045,310

328,292

339,444

11,152Foreign bonds

1,169,512

1,184,154

14,642

68,36953,727

1,292,421

1,445,869

153,447

161,326

7,879

Foreign stocks and other securities

404,844491,598

86,75492,0045,250

424,596

599,440

174,844

178,117

3,273

Other securities

134,069

158,971

24,902

27,1532,251

144,179

194,318

50,13851,570

1,431

Money held in trust

—

—

—

—

—

—

—

—

—

—

Monetary claims bought

—

—

—

—

—

—

—

—

—

—

Negotiable certificate of deposits

—

—

—

—

—

—

—

—

—

—

Others

—

—

—

—

—

—

—

—

—

—

Total

5,046,289

5,648,133

601,844746,451

144,607

5,194,599

6,145,611

951,012 1,107,175

156,163

Domestic bonds

2,985,287

3,073,516

88,228

169,695

81,4662,986,497

2,977,539(8,957)

134,115

Domestic stocks

352,575

739,891

387,316

389,227

1,911

346,904

928,443

581,539

582,045506

Foreign securities

1,574,356

1,675,753

101,396

160,374

58,977

1,717,017

2,045,310

328,292

339,444

11,152Foreign bonds

143,073

1,169,512

1,184,154

14,642

68,36953,727

1,292,421

1,445,869

153,447

161,326

7,879

Foreign stocks and other securities

404,844491,598

86,75492,0045,250

424,596

599,440

174,844

178,117

3,273

Other securities

134,069

158,971

24,902

27,1532,251

144,179

194,318

50,13851,570

1,431

Money held in trust

—

—

—

—

—

—

—

—

—

—

Monetary claims bought

—

—

—

—

—

—

—

—

—

—

Negotiable certificate of deposits

—

—

—

—

—

—

—

—

—

—

Others

—

—

—

—

—

—

—

—

—

—

Notes: 1. The table above includes assets which are considered appropriate to deem as securities under the Financial Instruments and Exchange Law.
Notes: 2. The securities and investment partnerships without fair value are not included in the table above.

• Book value of securities and investment partnerships without fair value are as follows:(Millions of yen)

Investments in subsidiaries and affiliates
Available-for-sale securities
Domestic stocks
Foreign stocks
OthersTotal

As of March 31, 2023
64,78736,051
5,709—
30,341
100,838

As of March 31, 2024
64,78745,922
5,824—
40,097110,709

Note: In this table, domestic and overseas investment partnerships are included in “Others” within“Available-for-sale securities.” However, unrealized gains on available-for-sale securities
corresponding to these holdings by domestic and overseas investment partnerships (¥3,616
million as of March 31, 2023 and ¥6,560 million as of March 31, 2024) are included in theirbalance sheet carrying amounts.

6

Fukoku Mutual Life Insurance Company

(v) Fair Value Information on Money Held in Trust(Millions of yen)

As of March 31, 2023

Money held in trust

Carrying valueon the balance
sheet

Fair value

25,89725,897

As of March 31, 2024

Gains

LossesCarrying valueon the balance
sheet

—

—

23,502

Gains/Losses—

Fair value

23,502

Gains/Losses

—

Gains

Losses——• Money held in trust for trading purpose(Millions of yen)

As of March 31, 2023
Net valuation gains/losses
included in the statementsof operations

Carrying valueon the balance sheet

Money held in trust fortrading purpose

As of March 31, 2024

24,897

Net valuation gains/losses
included in the statementsof operations

Carrying valueon the balance sheet

22,502(0)0• Money held in trust classified as held-to-maturity, policy-reserve-matching and available-for-sale(Millions of yen)

As of March 31, 2023
Book value

Fair value

Money held in trust for
held-to-maturity——

Money held in trust forpolicy-reservematching—

Money held in trust foravailable-for-sale—

As of March 31, 2024

Gains/Losses

Book value

Fair value

Gains

Losses

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

7

Gains/Losses
Gains

Losses

—

—

—

—

—

—

—

—

—

—

—

Fukoku Mutual Life Insurance Company

Reference: Fair Value Information on Derivative Instruments (General Account)(i) Gains and Losses on Derivatives(Millions of yen)

As of March 31, 2023

Interest-related Currency- related

Stock- related

Bond- related

Others

Total

Hedge accounting applied

—

(840)

—

—

—

(840)

Hedge accounting not applied

47

(561)

(31)

(137)

—

(683)

Total

47

(1,402)

(31)

(137)

—

(1,524)

Interest- related Currency- related

Stock- related

Bond- related

As of March 31, 2024

Others

Total

Hedge accounting applied

—

—

—

—

—

—

Hedge accounting not applied

—

(940)

(89)

—

—

(1,029)

Total

—

(940)

(89)

—

—

(1,029)Note: Gains and losses from applying fair value hedge accounting (currency-related losses of ¥840 million as of March 31, 2023) included ingains and losses with hedge accounting applied, and gains and losses with hedge accounting not applied are reported in the statementsof operations.

(ii) Interest-related Transactions(Millions of yen)

As of March 31, 2023
Notional amount/contract value
Fair valueOver 1 year

Gains
(Losses)

As of March 31, 2024
Notional amount/contract value
Fair valueOver 1 year

Gains
(Losses)Over-the-counter transactions
Yen interest rate swaption contracts
Sold
Receipt fixed, payment floating—[

Payment fixed, receipt floating

—

— ]
—

[

—
—

— [

—

— ]
—

— ]

—

— [

—
—

—

—

—

—

—

—

—

—

— ]

BoughtReceipt fixed, payment floating—[

Payment fixed, receipt floating—— ]30,000

[

—
—

— [

—

— ]
—

63 ]

110

Total

47 [
47

—

— ]

—

—

Note: Figures in [ ] are option premiums which are included in the balance sheet.

8

Fukoku Mutual Life Insurance Company

(iii) Currency-related Transactions(Millions of yen)

As of March 31, 2023
Notional amount/contract value
Fair valueOver 1 year
Over-the-counter transactions
Currency forward contracts
Sold
U.S. dollar
Australian dollarEuro
Swedish krona
Canadian dollar
British pound
BoughtCurrency options
Sold
Call
[
Put
[
BoughtCall[
Put[
U.S. dollar[
Australian dollar

Gains(Losses)

As of March 31, 2024
Notional amount/contract value
Fair valueOver 1 year

Gains
(Losses)

237,141
140,574
64,856
14,743
8,758
5,829
2,379

—
—
—
—
—
—
—

238,186
141,687
63,991
15,102
9,020
5,906
2,477

(1,044)(1,112)
865
(359)
(262)
(77)
(98)

24,61815,513
9,104
—
—
—
—

—
—
—
—
—
—
—

25,04915,788
9,261
—
—
—
—

(431)
(274)
(156)
—
—
—
—

—

—

—

—

—

—

—

—

—
—]
—
—]

—
— [

—
—]
—
—]

—

—

—

—

—

—

—
—]
30,650475 ]
30,650
475 ]
—
—]

—

—
—]
36,960536 ]35,100
515 ]
1,860
20 ]

—
—

—

26

(509)

25

(490)

—
—

— [

—

— [

—
118

(357) [—
118(357) [

—

—

—
—
—

[
—
— [
1
(18)
Total
(1,402)(940)
Notes:1. Forward exchange rates are used for exchange rates as of March 31, 2024.
Notes:2. Figures in [ ] are option premiums which are included in the balance sheet.
Notes: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(Millions of yen)

As of March 31, 2023
Notional amount/contract value
Fair valueOver 1 year
Exchange-traded transactions
Stock index option
Sold
Call
[
Put
[
Bought
Call
[
Put

—
—]
—
—]

—

—
—]
8,800
39 ]

—

—

Gains
(Losses)

— [

—
—

— [

—

— [

—

[
8
Total
Note: Figures in [ ] are option premiums which are included in the balance sheet.

(31) [(31)

As of March 31, 2024
Notional amount/contract value
Fair valueOver 1 year

—
— ]
—
— ]

—

—
— ]
6,150
90 ]

—

Gains
(Losses)

—

—

—

—

—

—

0

(89)
(89)

—

—

(v) Bond-related Transactions(Millions of yen)

As of March 31, 2023
Notional amount/contract value
Fair valueOver 1 year
Exchange-traded transactions
Yen-denominated bond futures
Sold
BoughtForeign currency-denominatedbond futures
Sold
BoughtTotal

Gains(Losses)

As of March 31, 2024
Notional amount/contract value
Fair valueOver 1 year

Gains
(Losses)

7,268
—

—
—

7,406
—

(137)
—

—
—

—
—

—
—

—
—

—
—

—
—

—
—

—
—
(137)

—
—

—
—

—
—

—
—
—

9

Fukoku Mutual Life Insurance Company

Reference: Fair Value of Real Estate (Land and Leaseholds)(Millions of yen)

As of March 31, 2023
Carrying valueon the balance sheet

149,749

Fair value

314,057

As of March 31, 2024
Carrying valueon the balance sheet

Gains (Losses)

164,307

149,485

Fair value

Gains (Losses)

325,747

176,261

Note: Fair value is based on the appraisal value by the real-estate appraiser, the appraisal value for property tax and the road rate.

10

Fukoku Mutual Life Insurance Company

3. Non-consolidated Balance Sheets(Millions of yen)
As of
As of
March 31,
March 31,
2023
2024

As of
March 31,
2023

As of
March 31,2024

402,472

307,632

Assets:Cash and deposits:
Cash

Liabilities:
Policy reserves:

5,916,509

Reserve for outstanding claims

5,971,022

21,52323,3345,830,565

5,885,784

64,42061,903

46

41

Subordinated bonds

241,935

267,260

Other liabilities:

204,041

171,364

97,504

Cash received as collateral under
securities lending transactions

155,483

121,299

542,134

533,321

Corporate income tax payable

101

7,429

836,501

1,033,612

Accounts payable

6,324

4,413

Foreign securities

1,756,176

2,134,166

Accrued expenses

10,58012,123

Other securities

175,445

217,644

Unearned income

437

420

Loans:

524,193499,793

Deposits received

6,592

6,611

Policy loans

47,08845,991

Guarantee deposits received

13,70014,276

Ordinary loans

477,104

453,802

Derivatives

3,005

1,030

3,822

22

345

138

156

138

Bank deposits

402,315

307,494

Call loans

130,000

128,000

Reserve for dividends to policyholders

Money held in trust

25,89723,502

Reinsurance payables

Securities:

5,799,182

6,349,312

Government bonds

2,395,965

2,333,062

Local government bonds

92,958

Corporate bonds
Stocks

Policy reserve

Tangible fixed assets:

247,321

255,788

Cash collateral received for financial
instruments

Land

149,747

149,483

Lease obligations

Buildings

89,583

101,324

Asset retirement obligations

2,328

2,355

Lease assets

928

908

Suspense receipts

1,319

1,244

Construction in progress

3,649

700

Reserve for employees' retirement benefits

25,951

26,701Other tangible fixed assets

3,412

3,371

Reserve for price fluctuation

177,188

180,566

Intangible fixed assets:

26,917

24,879Deferred tax liabilities

Software24,14820,962

Deferred tax liabilities for land revaluation

Lease assets

311

124

2,456

3,792

100

94

Other intangible fixed assets
Agency receivables
Reinsurance receivables—

79,748

14,164

14,132

6,579,836

6,710,837

Foundation funds

12,00012,000

Accumulated foundation funds redeemed

116,000

116,000

112

112

126,981

138,628

3,463

3,548

Total liabilities
Net assets:

62

85

Other assets:

55,516

51,188Reserve for revaluation

Accounts receivable

13,9405,838

Surplus:Prepaid expenses

4,281

3,935

Legal reserve for future losses

Accrued income

29,08932,167

Other surplus:

123,518

135,080

1,801

1,838

Reserve for redemption of foundation
funds

7,200

9,600

147

—

Reserve for dividend allowances

20,00020,0000

Accumulated fund for price fluctuation

41,00041,000205

204

Deposits
Differential account for futures trading
Derivatives

1,481

Suspense payments

1,621

3,639

Reserve for advanced depreciation ofreal estate for tax purpose

Rest of the other asset

3,153

3,768

Other reserves

Prepaid pension cost

1,614

2,313

Unappropriated surplus

Deferred tax assets

13,829—(703)

Allowance for possible loan losses

Total assets(826)

7,226,280

7,641,887

11

767

767

54,346

63,509Total foundation funds, surplus and others

255,093266,740

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

386,882

659,808

Revaluation reserve for land, net of tax

4,468

4,500

Total valuation and translation adjustments

391,350

664,308

Total net assets

646,444931,049

7,226,280

7,641,887

Total liabilities and net assets

Fukoku Mutual Life Insurance Company

4. Non-consolidated Statements of Operations
Year ended March 31, 2023

Ordinary revenues:
Premium and other income:Premium income
Reinsurance income
Investment income:Interest, dividends and other income:Interest on deposits
Interest and dividends on securities
Interest on loans
Income from real estate for rent
Other interest and dividends
Gains on money held in trust, net
Gains on trading securities, net
Gains on sales of securities
Gains on redemption of securities, net
Foreign exchange gains, net
Reversal of allowance for possible loan losses
Other investment income
Gains on separate accounts, net
Other ordinary revenues:
Fund receipt from annuity rider
Proceeds from deferred insurance
Reversal of reserve for outstanding claims
Reversal of reserve for claims and other payments
OthersTotal ordinary revenues
Ordinary expenses:
Claims and other payments:
ClaimsAnnuities
Benefits
Surrenders
Other payments
Reinsurance premiums
Provision of policy reserve and others:
Provision of reserve for outstanding claims
Provision of policy reserves
Provision of interest portion of reserve for dividends to policyholders
Investment expenses:
Interest expenses
Losses on money held in trust, net
Losses on sales of securities
Losses on valuation of securities
Losses on redemption of securities, net
Losses on derivative instruments, net
Foreign exchange losses, net
Depreciation of real estate for rent and other assets
Other investment expenses
Operating expenses
Other ordinary expenses:
Deferred annuity payments
Taxes
Depreciation
Provision of reserve for employees' retirement benefits
OthersTotal ordinary expenses
Ordinary profits
Extraordinary gains:
Gains on disposal of fixed assets
Total extraordinary gains
Extraordinary losses:
Losses on disposal of fixed assets
Impairment losses
Provision of reserve for price fluctuation
100th anniversary bonuses and other losses
Total extraordinary losses
Surplus before income taxes
Income taxes：
Current
Deferred
Total income taxes
Net surplus for the year

12

(Millions of yen)
Year ended March 31, 2024

526,037
525,871
166
234,698
164,7683
136,893
8,237
19,292343—
348
54,756
11,702
—
624
322
2,174
13,072
1,270
3,122
1,461
3,400
3,817
773,808

491,480
491,362118
273,141
172,157
3
143,193
8,896
19,833
229
1,185
803
66,405
2,508
2,525
117
321
27,117
10,393
2,372
3,743
—
—
4,277
775,016

504,790131,371
153,869
144,757
49,57925,008204
30,563—30,54913
91,083
4,469
161
46,1693,608
185
11,221
8,231
4,850
12,18590,47824,3803,618
7,546
11,388399
1,426
741,296
32,512465,840
105,387
151,933
123,479
59,48025,366
191
57,043
1,811
55,21813
86,716
4,245—
56,613
1,089
137
7,349
—
5,163
12,117
92,26423,794
3,876
7,966
10,174
53
1,722
725,658
49,357

393
393

33
33

178
32
518
—
730
32,175

201
657
3,378
4,471
8,708
40,682

3,096(1,793)1,303
30,872

13,340(12,441)898
39,783

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 the provisions set forth in the Insurance BusinessAct of Japan and its related rules and regulations and in conformity with accounting principles generally accepted in Japan,
which are different in certain respects from accounting principles generally accepted in countries and jurisdictions otherthan Japan.
In addition, the notes to the non-consolidated financial statements include information which is not required underaccounting principles generally accepted in Japan but is presented herein as additional information.
Amounts of less than one million yen have been rounded down. As a result, the totals do not add up.

II. Notes to the Non-consolidated Balance Sheets
1. (1) The valuation of securities, including cash and 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 the moving 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 in the Insurance Industry” (Industry Audit Committee Report No. 21, issued by theJapanese Institute of Certified Public Accountants (JICPA) on November 16, 2000).
iv) Investments in subsidiaries and affiliates are stated at cost, cost being determined by the moving average method.
v) Available-for-sale securities are stated at fair market value based on the market prices at the end of the fiscal year.
Costs of their sales are determined by the moving average method. Public and corporate bonds (including foreign
bonds) with differences between their acquisition costs and fair values that are considered as adjustments of interest
are stated at amortized cost (straight-line method) determined by the moving average method. However, stocks andother securities without quoted market prices are stated at cost, as determined using the moving average method. Net
unrealized gains or losses on these available-for-sale securities, net of taxes, are recorded as a separate component of
net assets.
(2) Derivative instruments are stated at fair market value.
(3) The Company revalued the land used in the operations based on the Act for Revaluation of Land (Act No.34 promulgatedon 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 separate component of net assets and the related tax is recorded asdeferred tax liabilities for land revaluation.
• Date of revaluation: March 31, 2002
• Method of revaluation as prescribed for in Article 3 Paragraph 3 of the said Act:
Calculation is based on the appraisal value for property tax set forth in Article 2 item 3 of the Enforcement Ordinanceof the Act for Revaluation of Land (Government Ordinance No.119 promulgated on March 31, 1998) and the roadrate set forth in Article 2 item 4 of the said Ordinance with certain reasonable adjustments.
(4) Depreciation of tangible fixed assets is calculated by the following methods.
• Tangible fixed assets (excluding lease assets): Declining-balance method
13

Fukoku Mutual Life Insurance Company

However, buildings (excluding building attachments and structures acquired on or before March 31, 2016) acquiredon or after April 1, 1998 are depreciated using Straight-line method.
• Lease assets related to finance lease transactions that do not transfer ownership: Straight-line method over the leaseterm with no residual value.
Other tangible fixed assets acquired for ¥100,000 or more but less than ¥200,000 are depreciated equally overthree years.
(5) Assets and liabilities denominated in foreign currencies, except for investments in subsidiaries and affiliates, aretranslated 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 is provided in accordance with the Company’s standards of self-assessment and writeoffs and reserves on credit quality:i) For the credits of borrowers who are legally bankrupt such as being in the proceedings of bankruptcy or civil
rehabilitation (hereinafter called “legally bankrupt borrowers”) and who are substantially bankrupt (hereinafter
called “substantially bankrupt borrowers”), the Company provides the remaining amounts of credits after the direct
write-off described below and the deductions of the amount expected to be collected through the disposal ofcollateral or the execution of guarantees.
ii) For the credits of borrowers who are not currently bankrupt but have a high possibility of bankruptcy (hereinafter
called “not currently bankrupt borrowers”), the Company provides the amounts deemed as necessary considering theborrowers’ ability to pay, within the amounts after deductions of the amounts expected to be collected through thedisposal 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 theborrowers’ 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 of selfassessment on credit quality. The results of the assessment are reviewed by the audit department, which is independent ofbusiness-related divisions. Subsequently, the allowance for possible loan losses is provided based on the results of theseassessments.
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 of guarantees are written-off directly fromthe borrowers’ balances as the estimated uncollectible amounts. The amount written-off as of March 31, 2024 was ¥0
million.
(7) Reserve for employees' retirement benefits and prepaid pension cost are presented based on projected benefit obligations
and pension plan assets at the balance sheet date.
The Company uses the following methods for amortizing retirement benefit obligations and retirement benefit
expenses:• Method for allocation of projected retirement benefits ................

Benefit formula basis• Amortization period of actuarial gains and losses.........................

10 years• Amortization period of prior service cost......................................

10 years(8) Reserve for price fluctuation is calculated in accordance with Article 115 of the Insurance Business Act.
(9) Hedge accounting is based on "Accounting Standards for Financial Instruments" (ASBJ Statement No. 10, July 4, 2019).
The Company applies a fair value hedge accounting as a hedge against the risk of foreign exchange fluctuation in relation
to bonds and others denominated in foreign currencies, and a designated hedge accounting (“Furiate shori”) for foreign

14

Fukoku Mutual Life Insurance Company

currency swaps as a hedge against the risk of foreign exchange fluctuation in relation to bonds denominated in foreign
currencies issued by the Company.
For assessing the effectiveness of hedge used, ratio analysis of comparing the fluctuations in the fair value or cash
flows of hedged items and hedging instruments is mainly applied.
(10) Accounting of unrecognized actuarial differences and unrecognized prior service cost related to employees’ retirement
benefits is different to the methods used for these items in the consolidated financial statements.
(11) 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 Act, aredeferred as prepaid expenses and amortized equally over five years. Consumption taxes other than deferred consumption
taxes are recognized as an expense when incurred.
(12) Initial premium incomes are recorded by the relevant amounts received when the premium incomes have been received
and the responsibilities on the insurance contract have been commenced, in principal.
Subsequent premium incomes are also recorded as the amount of payments that have been received.
Of premium incomes that have been received, the portion corresponding to the period that has yet to pass as of theend of the fiscal year is accumulated as policy reserve in accordance with Article 116 of the Insurance Business Act andArticle 69 Paragraph 1 Item 2 of the Enforcement Regulation of the Insurance Business Act.
Premium incomes associated with the acceptance of group annuities are recorded as amounts equivalent to thepolicy reserve received when accepting the transfers of these group annuities.
(13) Claims and other payments (excluding reinsurance premiums) are recorded by the relevant amounts paid when the cause
for payment under the policy conditions is occurred and the calculated amounts are paid based on the policy conditions.
In accordance with Article 117 of the Insurance Business Act and Article 72 of the Enforcement Regulation of the
Insurance Business Act, reserve for outstanding claims are accumulated as for claims for which the Company has apayment due but has not paid, or for which the occurrence of cause for payment has not been reported but the Company
recognizes that insured payment has already occurred as of the end of the fiscal year.
Regarding claims for which the occurrence of cause for payment has not been reported but the Company
recognizes that insured payment has already occurred (“IBNR reserves”), the special treatment providing payment of
hospitalization benefits with respect to those diagnosed with COVID-19 and were under the care of a doctor or the like at
an lodging facility or at home (“deemed hospitalization”) was discontinued on May 8, 2023. As a result of this change, anappropriate amount of reserves cannot be obtained with the calculation method set forth in the main rules in Article 1,
Paragraph 1 of the Notification of the Minister of Finance No.234, 1998 (“IBNR Notification”). The Company therefore
records the amount that was calculated using the following method, pursuant to provisions in the proviso of Article 1,
Paragraph 1 of IBNR Notification (the “Proviso”).
(Overview of the calculation method)
The Company first deducts an amount pertaining to deemed hospitalization of policy holders from a required amountof IBNR reserves and the amount of claim payments for all the fiscal years, as set forth in the main rules in Article 1,
Paragraph 1 of IBNR Notification, and then calculates in the same manner as in the main rules in Article 1, Paragraph
1 of IBNR Notification.
Furthermore, at the end of the previous fiscal year, instead of the amount related to the deemed hospitalization,
the amount related to the deemed hospitalization other than those with a high risk of severity was deducted, but due tothe termination of treatment of hospitalization benefits for deemed hospitalizations during the fiscal year, we haverevised the calculation method to deduct the amount related to such deemed hospitalizations .
Claims and other payments associated with the outgoing transfer of group annuities are recorded as amounts
equivalent to the policy reserve transferred when recognizing the transfers of these group annuities.
15

Fukoku Mutual Life Insurance Company

(14) Policy reserve of the Company is accumulated in accordance with the methods stated in the statement of calculation
procedures for Insurance Premiums and Policy Reserves (Article 4 Paragraph 2 Item 4 of the Insurance Business Act)
pursuant to Article 116 Paragraph 1 of the Insurance Business Act to prepare for the future performance of obligations
under the insurance contracts for which the insurer’s responsibilities have started as of the end of the fiscal year.
Premium reserves, one of the components of policy reserve, are calculated by the following method.
i) In regard to the policies subject to the standard policy reserve, the method as prescribed by the Commissioner ofFinancial Services Agency (Ministry of Finance Ordinance No.48, 1996) is applied.
ii) In regard to the policies not subject to the standard policy reserve, the net level premium method is applied.
In regard to the policy reserve accumulated pursuant to Article 69 Paragraphs 1,2, and 4 of the Enforcement
Regulation of the Insurance Business Act, when the actual assumptions for long-term future cash flows (such as assumed
incidence rate and assumed interest rate) deviate from those assumptions set in the “statement of calculation proceduresfor Insurance Premiums and Policy Reserves” and policy reserve is considered to be possibly insufficient to cover the
future performance of obligations, additional policy reserve is required to accumulate in accordance with Article 69
Paragraph 5 of the Enforcement Regulation of the Insurance Business Act. The following reserves have been establishedin compliance with this regulation.
･ Among individual annuity insurance policies with an assumed interest rate of 5.00% or higher, for policies that havebegun paying annuities (excluding wife’s annuity insurance additional rider), the Company has reduced the assumed
interest rate to 1.00% and funded additional policy reserves. As of March 31, 2024, the balance of these policy reserves
was ¥69,848 million.
･ Among whole life insurance policies with assumed interest rates of 5.00% or higher following the fiscal year ended
March 31, 2024, the Company has reduced assumed interest rates for policies with premiums that have been paid infull (excluding policies that have been converted into paid-up or extended policies, single premium policies, andpolicies for which premiums have been waived) to 1.00% and funded additional policy reserves. As of March 31, 2024,
the balance of these policy reserves was ¥105,883 million.
･ The Company has also funded additional policy reserves for certain whole life insurance policies that include
distribution of surplus every five years, new cancer riders, highly advanced medical riders and transplant medical
riders. As of March 31, 2024, the balance of these policy reserves was ¥84 million.
Appointed actuary, for each fiscal year, verify whether policy reserves have been reasonably accumulated inaccordance with Article 121 Paragraph 1 of the Insurance Business Act and Article 80 of the Enforcement Regulation of
the Insurance Business Act.
Contingency reserves, one of the components of policy reserve, are accumulated pursuant to Article 116 of the
Insurance Business Act and Article 69 Paragraph 1 Item 3 of the Enforcement Regulation of the Insurance Business Act
to cover risks that may accrue in the future in order to ensure performing future obligations under the insurance contracts.
(15) Depreciation of intangible fixed assets is calculated by the following methods.
• Software: Straight-line method over the estimated useful lives.
• Lease assets related to finance lease transactions that do not transfer ownership: Straight-line method over the leaseterm with no residual value.

(16) Of the bonds corresponding to the sub-groups of individual insurance, individual annuities, and group annuities
which are set by insurance types and investment policies, the bonds that are held to match the duration of liabilities
are classified as policy-reserve-matching 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 JICPA on November 16, 2000).

16

Fukoku Mutual Life Insurance Company

2. Asset management of the general accounts other than the separate accounts stipulated in Article 118 Paragraph 1 of the
Insurance Business Act is conducted on the principle of prudent and profitable investments, considering public and social
responsibilities of the insurance business. Based on this policy, the Company allocates the fund, securing its liquidity, fromthe medium-to-long term viewpoints. The Company is diversifying investments in assets such as foreign securities, stocks
and real estates within the acceptable range of risks in order to enhance the profitability, although yen-denominated interest
bearing assets including debt securities such as Japanese government bonds and loans are the cores of the portfolios under
the asset liability management. Derivatives are mainly used to hedge the market risk regarding spot-priced assets andliabilities.
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 “Three Basic Rules related to Enterprise Risk Management” established by the Board of Directors.
Specifically, the Company eliminates excessive risk deviating from the basic principle and secures 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, theCompany quantifies the market 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.
The carrying amounts, fair values and their related differences of major financial assets and liabilities in the generalaccount as of March 31, 2024 were as follows:
Carrying amountMoney held in trust:
Trading securities.........................……………...................
Total money held in trust.....................................................
Securities:
Held-to-maturity debt securities..........................................
Policy-reserve-matching bonds...........................................
Available-for-sale securities....................……………........
Total securities.......................................……………..........
Loans:
Policy loans............................................…………..…........
Ordinary loans.........................................…………….........
Total loans...............................................………….............
Assets total...............................................…………….......…......
Subordinated bonds*1............................……………...…..........
Liabilities total…..........................................……………....…....
Derivative instruments*2:
Hedge accounting not applied...........……….……..............
Total derivative instruments.........……………..................

Fair value(Millions of yen)
Difference¥22,50222,502¥22,50222,502¥——

708,320
290,573
5,103,160
6,102,053

759,424
283,026
5,103,160
6,145,611

51,104(7,546)—43,55845,991453,802499,7936,624,349
267,260
267,260

45,991
458,559
504,550
6,672,664
263,910
263,910

(0)
4,756
4,756
48,314(3,349)(3,349)(1,029)¥(1,029)(1,029)¥(1,029)—¥—*1 The fair value of derivative instruments that are currency swaps under designated hedge accounting is included in the fairvalue of subordinated bonds because it is accounted for as an integral part of the subordinated bonds that are the hedge items.
*2 Assets and liabilities generated by derivative instruments are offset and presented net. Net liabilities in total are presented inparentheses.
Notes: 1. Stocks without market prices, such as unlisted stocks, are not included in Securities of the above table.
The amount of these stocks on the balance sheet as of March 31, 2024 was ¥73,611 million.
Notes: 2. In accordance with Paragraph 24-16 of the "Implementation Guidance on Accounting Standard for Fair Value
Measurement" (ASBJ Guidance No.31, June 17, 2021. Hereinafter called “Implementation Guidance on AccountingStandard for Fair Value Measurement”), investments in partnerships are not included in Securities of the above table. Asof March 31, 2024, the amount of investments in partnerships included on the balance sheet was ¥43,658 million.
Notes: 3. Investment trusts with real estate as investment trust properties which have applied Paragraph 24-9 of the Implementation
Guidance on Accounting Standard for Fair Value Measurement are included in Securities.

17

Fukoku Mutual Life Insurance Company

3. Matters concerning the breakdown of financial instruments by fair value level are as follows.
The fair values of financial instruments are classified into the following three levels according to the observability andmateriality of inputs used to measure fair value.
Fair Value Level 1: Fair values measured using (unadjusted) quoted prices in active markets for identical assets or liabilities
Fair Value Level 2: Fair values measured using directly or indirectly observable inputs other than Level 1 inputs
Fair Value Level 3: Fair values measured using material unobservable inputs
When multiple inputs with material impact are used to measure fair value, the resulting fair value is classified into the lowest
fair value level into which any of these inputs can be categorized.
(1) Financial assets and liabilities with fair values recorded on the balance sheet as of March 31, 2024
(Millions of yen)Classification
Money held in trust:
Trading securities........................…….....
Total money held in trust..........................
Securities:
Available-for-sale securities:
Government bonds……………….…...
Local government bonds………….….
Corporate bonds……………….….….
Stocks………………………………...
Foreign securities…………………….
Other securities………………………
Total available-for-sale securities……
Total securities........................…….....
Assets total.....................………………..........
Derivative instruments*:
Currency-related………………..............
Stock-related……………………............
Total derivative instruments...….............

Fair value
Level 2

Level 1

Level 3

Total

¥—
—

¥22,50222,502¥——¥22,50222,502

1,343,935—
89,684
501,467—————

1,343,935——
928,443905,046
50,8293,228,254
3,228,254
3,228,254

1,113,911
133,544
1,838,607
1,838,607
1,861,109

26,352—
26,352
26,352
26,352

89,684
501,467
928,443
2,045,310
184,373
5,093,214
5,093,214
5,115,716

—
(89)
¥(89)

(940)
—
¥(940)

—
—
¥—

(940)
(89)
¥(1,029)* Assets and liabilities generated by derivative instruments are offset and presented net. Net liabilities in total are presented
in parentheses.
Note: Investment trusts with real estate as investment trust properties that have applied Paragraph 24-9 of the Implementation
Guidance on Accounting Standard for Fair Value Measurement are not included in the figures above. The amount of theinvestment trusts on the balance sheet as of March 31, 2024 was ¥9,945 million. Reconciliation of balances from the
beginning of the current fiscal year to balances as of March 31, 2024 for the investment trusts were as follows:(Millions of yen)

Balance at the beginning of the fiscal year………

¥5,596

Changes in net unrealized gains or losses…….

203

Purchase, sales, and redemption………………

4,146

Purchase…………….……………………….

4,146

Balance at the end of the fiscal year…..…………

¥9,94518

Fukoku Mutual Life Insurance Company

(2) Financial assets and liabilities with fair values not recorded on the balance sheet as of March 31, 2024
(Millions of yen)Classification
Securities:
Held-to-maturity debt securities:
Government bonds……………….…...
Local government bonds………..…….
Corporate bonds….…………….….….
Total held-to-maturity debt securities...
Policy-reserve-matching bonds:
Government bonds……………….…...
Local government bonds………..…….
Corporate bonds….…………….….….
Total policy-reserve-matching bonds…

Fair value
Level 1

Level 2

Level 3

Total

744,790——744,790

—
7,058
7,576
14,634————

744,790
7,058
7,576
759,424

Total securities.............................…….

269,948——
269,948
1,014,738—
1,837
11,241
13,07827,713—————269,948
1,837
11,241
283,026
1,042,451

Loans:
Policy loans.................................….........
Ordinary loans..........................................
Total loans................................…............
Assets total.........................................…….......
Subordinated bonds
Liabilities total..........………………….….......

———
1,014,738
—
¥—

—
—
—
27,713263,910¥263,910

45,991
458,559
504,550
504,550—¥—

45,991
458,559
504,550
1,547,002
263,910¥263,910(3) Explanation of valuation techniques and inputs used to measure fair valuei) Securities (including deposits and monetary claims bought which are treated as securities based on “AccountingStandards for Financial Instruments” [ASBJ Statement No.10, July 4, 2019])
The fair values of securities for which unadjusted quoted market prices in active markets are available (primarily
listed stocks and government bonds [including some foreign securities]) are classified as Fair Value Level 1.
Meanwhile, the fair values of securities for which quoted market prices are available, but are not available in active
markets, are classified as Fair Value Level 2 (This category primarily includes local government bonds andcorporate bonds [including some foreign securities]). When quoted market prices are not available for securities,
prices obtained from third parties (mainly from information vendors and financial institutions with which theCompany conducts business) and determined to have been measured in accordance with prescribed accounting
standards are used to measure the fair values of these securities. If the inputs used to measure the fair value of agiven security are material but unobservable, the resulting fair value is classified as Fair Value Level 3.
ii) Money held in trust
In principle, the fair values of securities managed as trust assets and classified as money held in trust are measured
using the Company's prescribed method for determining the value of securities. These fair values are categorized as
Fair Value Level 2.
iii) Loans
The fair values of policy loans are deemed to approximate book values, considering estimated repayment period andinterest rate conditions since their repayment deadlines have not been set up due to the characteristics that the loans
are limited to the amount of cash surrender values. Therefore, the book values are used as the fair values of policy
loans.
The fair values of floating interest rate loans among the ordinary loans approximate the book values because
the market interest rates are reflected in future cash flows in a short period. Therefore, the fair values of floatinginterest rate loans are used as their book values. The fair values of fixed interest rate loans are primarily calculatedby discounting the future cash flows to the present values.

19

Fukoku Mutual Life Insurance Company

The fair values of loans from legally bankrupt borrowers, substantially bankrupt borrowers and not currently
bankrupt borrowers are computed by deducting the amount of the allowance for possible loan losses from the bookvalues before direct write-offs.
Because significant unobservable inputs used to measure the fair values of loans, the resulting fair values areclassified as Fair Value Level 3.
iv) Subordinated bonds
The fair values of corporate bonds issued by the Company are classified as Fair Value Level 2 and are measured
using the same method applied to securities.
v) Derivative instruments
The fair values of derivative instruments for which unadjusted quoted market prices in active markets are available(primarily exchange-traded futures and options) are classified as Fair Value Level 1. However, most derivative
instruments are traded over the counter and have no quoted market prices. Accordingly, prices obtained from third
parties (mainly from information vendors and financial institutions with which the Company conducts business) anddetermined to have been measured in accordance with prescribed accounting standards are used to measure the fairvalues of these derivative instruments. Fair values of derivative instruments that were measured using only
observable inputs or with unobservable inputs considered to be immaterial are classified as Fair Value Level 2.
Meanwhile, fair values of derivative instruments that have been measured using material unobservable inputs are
categorized as Fair Value Level 3.
(4) Information concerning fair values of financial assets and liabilities that have been recorded on the balance sheet as ofMarch 31, 2024 and classified as Fair Value Level 3i) Quantitative information regarding material unobservable inputs
When measuring fair value, the Company does not adjust quoted prices obtained from third parties and does notmake estimates related to inputs that it cannot observe. Accordingly, quantitative information regarding material
unobservable inputs have been omitted.
ii) Reconciliation of balances at the beginning of the current fiscal year and balances as of March 31, 2024, andvaluation gains or losses recognized in the statements of operations for the fiscal year ended March 31, 2024.
(Millions of yen)
Securities,
Available-for-sale securities,
Foreign securities

Balance at the beginning of the current fiscal year…..
Gains or losses during the fiscal year….…….….…
Values recognized as gains or loses*……………
Changes in net unrealized gains or losses………....
Balance at the end of the current fiscal year……….....

¥26,490
(10)
(10)
(127)
¥26,352

Total¥26,490
(10)
(10)
(127)
¥26,352* These amounts are included in investment income and investment expenses in the non-consolidated
statements of operations for the fiscal year ended March 31, 2024.

iii) Explanation of the valuation process for fair value
The Company's asset management division is responsible for the formulation of policies and procedures related tothe measurement of fair value and the actual measurement of fair value. These fair values are subsequently checkedby the risk management department to ensure their appropriateness and compliance with relevant policies andprocedures.
The Company verifies the appropriateness of the fair values it measures using a variety of suitable methods,
which include comparing quoted market prices obtained from different third parties; confirming techniques andinputs utilized for calculation; and further comparing measured fair values with the fair values of similar financial
instruments.

20

Fukoku Mutual Life Insurance Company

iv) Explanation of the impact on fair value in case of change in material unobservable inputs
When measuring fair value, the Company does not adjust quoted prices obtained from third parties and does notmake estimates related to inputs that it cannot observe. Accordingly, it has omitted information concerning impact
on fair value stemming from changes in material unobservable inputs.

4. The Company holds investment and rental properties such as office buildings in Tokyo and other areas. The carrying
amounts and the fair values of investment and rental properties were ¥208,136 million and ¥372,027million as of March 31,
2024, respectively. The fair value is mainly based on the value calculated by the Company in accordance with real estateappraisal standards which includes some adjustments using the reference prices.
The amount corresponding to asset retirement obligations included in the carrying amount of investment and rental
properties was ¥281 million as of March 31, 2024.

5. The amount of securities lent under lending agreements was ¥518,568 million as of March 31, 2024.

6. The total amount of claims against bankrupt and quasi-bankrupt obligors, claims with collection risk, delinquent loans past
three months or more, and restructured loans was ¥1,137 million as March 31, 2024. The details are as follows.
i) The balance of claims against bankrupt and quasi-bankrupt obligors was ¥110 million as of March 31, 2024.
Of which, the estimated uncollectible amount written-off was ¥0 million as of March 31, 2024.
Claims against bankrupt and quasi-bankrupt obligors are loans to borrowers who are subject to bankruptcy,
corporate reorganization or rehabilitation or other similar proceedings and other borrowers in serious financial
difficulties.
ii) The balance of claims with collection risk was ¥508 million as of March 31, 2024.
Claims with collection risk are loans to obligors (other than bankrupt and quasi-bankrupt obligors) with deteriorated
financial condition and results of operations from which it is unlikely that the principal and interest on the loans will berecovered.
iii) There was no balance of delinquent loans past three months or more as of March 31, 2024.
Delinquent loans past three months or more are loans for which interest payments or repayments of principal aredelinquent for three months or more from the due date under the terms of the related loan agreements, excluding thoseloans classified as claims against bankrupt and quasi-bankrupt obligors, claims with collection risk.
iv) The balance of restructured loans was ¥518 million as of March 31, 2024.
Restructured loans are loans for which certain concessions favorable to borrowers, such as interest reduction or
exemption, rescheduling of due date for repayments of principal or interest payment, waiver of claim 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 claims against bankrupt and quasi-bankrupt obligors, claims with collection
risk, and delinquent loans past three months or more.

7. Accumulated depreciation of tangible fixed assets were ¥182,699 million as of March 31, 2024.

8. Total assets in separate accounts provided for in Article 118 of the Insurance Business Act were ¥141,452 million as ofMarch 31, 2024. The amounts of separate account liabilities were the same as separate account assets.

9. The total amounts of receivables from/payables to subsidiaries were ¥3,098 million and ¥2,348 million as of March 31,
2024, respectively.
21

Fukoku Mutual Life Insurance Company

10. The total amount of monetary obligations owed to directors was ¥3 million as of March 31, 2024.

11. Deferred tax assets and deferred tax liabilities as of March 31, 2024 were ¥185,225 million and ¥260,074 million,
respectively. Valuation allowance for deferred tax assets was ¥4,899 million.
Major components of deferred tax assets were ¥113,745 million of policy reserves, ¥50,558 million of reserve forprice fluctuation and ¥13,149 million of reserve for employees' retirement benefits as of March 31, 2024.
Major component of deferred tax liabilities was ¥254,206 million of net unrealized gains on available-for-salesecurities as of March 31, 2024.
The statutory tax rate and the actual effective tax rate for the year ended March 31, 2024 were 28.0% and 2.2%,
respectively. The difference between the statutory tax rate and the actual effective tax rate was attributable mainly to-25.6%of reserve for dividends to policyholders.

12. Changes in reserve for dividends to policyholders for the year ended March 31, 2024 were as follows:(Millions of yen)

¥64,420
28,002(30,532)
13¥61,903

Balance at the beginning of the fiscal year…......................................................
Transfer from surplus in the previous fiscal year................................................
Dividend payments to policyholders during the fiscal year…..………………..
Increase in interest....................................................……………………...........
Balance at the end of the fiscal year....................................................................

13. The amount of stocks of subsidiaries was ¥64,787 million as of March 31, 2024.

14. Assets pledged as collateral as of March 31, 2024 were ¥138,648 million of securities.
Secured debts as of March 31, 2024, were ¥127,337 million.
These amounts include ¥114,460 million of investments in securities deposited and ¥121,299 million of cash received
as collateral under securities lending transactions secured by cash as of March 31, 2024.

15. Reserve for outstanding claims for the reinsurance contracts provided in accordance with Article 71 Paragraph 1 of the
Enforcement Regulation of the Insurance Business Act (hereinafter called “reserve for outstanding claims for ceded
reinsurance”) was ¥0 million as of March 31, 2024.
Policy reserve for the reinsurance contracts provided in accordance with Article 71 Paragraph 1 of the Enforcement
Regulation of the Insurance Business Act (hereinafter called “policy reserve for ceded reinsurance”) was ¥18 million as ofMarch 31, 2024.

16. The total amounts 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 Act was ¥664,421 million as of March 31, 2024.

17. There were unused commitment line agreements under which the Company is the lender of ¥4,344 million as ofMarch 31, 2024.

18. Repayments of subordinated bonds are subordinated to other obligations.

22

Fukoku Mutual Life Insurance Company

19. Matters Related to Employees’ Retirement Benefits as of March 31, 2024
(1) Overview of Employees’ Retirement Benefit Plan
As for a defined benefit plan for office-based employees, the Company has a defined benefit corporate pension plan andretirement lump-sum payments. As for a defined contribution plan for these employees, the Company also has a defined
contribution pension plan.
Furthermore, the retirement benefit plan for internal service employees was revised at the end of September 2023
due to factors including the raising of the retirement age to 65, resulting in a prior service cost of -6,929 million yen.
As for a defined benefit plan for sales employees, the Company has retirement lump-sum payments.
The Company places a retirement benefit trust in relation to the retirement lump-sum grant plan for sales
employees.
The simplified method for calculating retirement benefit obligation is applied to a portion of the Company’s
retirement lump-sum grant plans.
(2) Defined Benefit Plani) Reconciliation of beginning and end of balance of retirement benefit obligation(Millions of yen)

Retirement benefit obligation at the beginning of the fiscal year……………
Service cost………………………………………………………………..
Interest cost………………………………………………………………..
Actuarial differences occurred during the fiscal year……………………..
Retirement benefit payments………………………………………………
Prior service cost………………………………………..….………….….
Retirement benefit obligation at the end of the fiscal year…………………..

¥90,426
3,573
520(9,156)(3,715)(6,929)¥74,720ii) Reconciliation of beginning and end of balance of pension plan assets(Millions of yen)

Pension plan assets at the beginning of the fiscal year………………………
Expected return on pension plan assets…………….……………………..
Actuarial differences occurred during the fiscal year……………………..
Contributions by the employer…………………………………………….
Retirement benefit payments………………………………………………
Pension plan assets at the end of the fiscal year…………………..………….

¥66,470
1,229
12,579918(1,577)¥79,620iii) Reconciliation of retirement benefit obligation and pension plan assets with reserve for employees’
retirement benefits and prepaid pension cost presented on the non-consolidated balance sheet(Millions of yen)a. Funded plan retirement benefit obligation…………………………………
b. Pension plan assets……………………………….…………….…………..
c. (a + b)…………………………………………………………….………...
d. Unfunded plan retirement benefit obligation……………………………....
e. Unrecognized actuarial differences…………….……..…………………
f. Unrecognized prior service cost……………………………………..…..
g. Net amount of liabilities and assets presented
on the non-consolidated balance sheet………………………….………...

¥65,969(79,620)(13,650)
8,750
22,7406,547

h. Reserve for employees’ retirement benefits………………..……….……...
i. Prepaid pension cost……………………………………………….………..

26,701(2,313)

j. Net amount of liabilities and assets presented
on the non-consolidated balance sheet………..…………………….…….

¥24,387

23

24,387

Fukoku Mutual Life Insurance Company

iv) Breakdown of retirement benefit gains and losses(Millions of yen)

Service cost…………………………………………..…………….…………
Interest cost………………………………..……….………….….…………..
Expected return on pension plan assets………………………….….………...
Amortization of actuarial differences………………………………………....
Amortization of prior service cost……………………………………….…..

¥3,573520(1,229)582(341)

Retirement benefit expenses related to defined benefit plan………….…..….

¥3,106v) Breakdown of pension plan assets
The breakdown of asset categories as a percentage of total pension plan assets were as follows:
Domestic stocks……………………………..………..….……………..……
49.7%
Life insurance general account…………..….………………...……………..
26.1%
Domestic bonds…………………….………………………………………...
9.1%
Foreign stocks……………………………………………………..………....
8.9%
Assets under joint management……………………………...…………..…..
3.1%
Foreign bonds………………………………………………...…………..…..
3.0%
Total……….…………………………………………………………….....…
100.0%
Within the total of pension assets, 42.3% of this amount is accounted for by the retirement benefit trust establishedin relation to the retirement lump-sum payments plan for sales employees.
vi) Method for setting the expected long-term rate of return
To set the expected long-term rate of return on pension plan assets, the Company takes into account the present andfuture allocation of pension plan assets, and the present and expected future long-term rate of return on a variety ofassets that makes up the pension assets.
vii) Underlying actuarial assumptions
Main underlying actuarial assumptions as of March 31, 2024, were as follows:
Discount rate…………………………………..….….…………………..…
Expected long-term rate of return on pension plan assets
Defined Benefit Plan….…………………………………………………...
Retirement benefit trust…………………………………..……..………....

1.6%
3.0%
0.0%

(3) Defined Contribution Plan
The required contribution amount by the Company to the defined contribution plan was ¥235 million as ofMarch 31, 2024.

24

Fukoku Mutual Life Insurance Company

III. Notes to the Non-consolidated Statements of Operations
1. The total amounts of revenues and expenses in connection with subsidiaries were ¥2,096 million and ¥10,727 million for theyear ended March 31, 2024.

2. The details of gains on sales of securities for the year ended March 31, 2024 were as follows:(Millions of yen)Domestic bonds.................................................................................................
Domestic stocks and others...............................................................................
Foreign securities..............................................................................................

¥4,52746,314¥15,564

3. The details of losses on sales of securities for the year ended March 31, 2024 were as follows:(Millions of yen)Domestic bonds…………….............................................................................
Domestic stocks and others....................................................….......................
Foreign securities..............................................................................................

¥30,091803¥25,719

4. The details of losses on valuation of securities for the year ended March 31, 2024 were as follows:(Millions of yen)Domestic bonds…………….............................................................................
Domestic stocks and others………..................................................................
Foreign securities.......................................................................…………......

¥262
513
¥312

5. For the year ended March 31, 2024, in calculating the provision of reserve for outstanding claims, a provision of reserve foroutstanding claims for ceded reinsurance of ¥0 million was deducted. In calculating the provision of policy reserves, areversal of policy reserve for ceded reinsurance of ¥2 million was added.

6. The details of gains on trading securities for the year ended March 31, 2024 were as follows:(Millions of yen)Interest, dividends and other income…………………….................................

¥152

Gains on sales of trading securities………………..………….…….………...

1,025

Losses on redemption of trading securities…….……………….….………...

1,510

Gains on valuation of trading securities…………………..…….…..………....

¥1,135

7. Gains on money held in trust for the year ended March 31, 2024 included valuation gains of ¥0 million.

8. Losses on derivative instruments for the year ended March 31, 2024 included valuation losses of ¥346 million.

9. Items related to impairment losses for the year ended March 31, 2024 were as follows:(1) Asset grouping method
Real estate and similar used for the insurance business is treated as one asset group for the insurance business as a whole.
For other assets such as real estate for rent and idle real estate, each property is treated as one asset group.
(2) Process leading to recognition of impairment losses
For certain assets such as real estate for rent, and idle real estate whose profitability declined significantly due to adecrease in rental income and a fall in land prices, the book value was reduced to the recoverable amount, and the reduced
amount was recorded as an impairment losses in extraordinary losses.
25

Fukoku Mutual Life Insurance Company

(3) Asset groups for which impairment losses were recognized and breakdown of impairment losses by fixed asset type.
(i) Real estate for rent and similar assets(Millions of yen)

Land…………………………….

¥56

Buildings……………………….

8

Total…………………………….

¥64(ii) Idle real estate and similar assets(Millions of yen)

Land…………………………….

¥107

Buildings………………………..

485

Total…………………………….

¥593(iii) Total (i + ii)(Millions of yen)

Land…………………………….

¥163

Buildings………………………..

494

Total…………………………….

¥657(4) Calculation method for recoverable amounts
Net selling prices are used to represent recoverable amounts. Appraisal value, or assessed value based on the publishedprice or roadside land price is used to represent net selling prices.

26

Fukoku Mutual Life Insurance Company

5. Breakdown of Ordinary Profits (Fundamental Profit)(Millions of yen)

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

A

B
A+B

C
A+B+C

Year ended
March 31, 2023

Year ended
March 31, 2024

47,29776,986——54,756——22,23070,157299
106
46,1693,608
11,221
8,231
521
6,829
54,126
3,608
—
—
208
3,400
25,223—
12,430———12,792(21,614)32,51293,01973,0871,087
650
66,405
—
2,525
2,418
64,053——56,613
1,089
7,349
—
(999)
9,034
102,05342——
42—
52,738—41,011———
11,727(52,696)
49,357

Note: Other items break down as follows.
Year ended
March 31, 2023

Fundamental profit(Millions of yen)
Year ended
March 31, 2024

(21,116)(3,167)

Interest, dividends, and other income from gains/losses on money held in trust
Interest, dividends, and other income from gains/losses on trading securities
Foreign exchange-related hedging costs categorized under foreign exchange gains/losses

137
455(10,712)

97
152
(999)

Interest, dividends, and other investment expenses from gains/losses on cancellation of
investment trusts

521

(47)

(11,517)
22,23010,712(2,371)
2,418
—

—

47

11,517
521

2,371
(999)

—

(999)

521

—

3,400

—

Portion of gains/losses on redemption of securities attributable to foreign exchange fluctuations
Other capital gains
Foreign exchange-related hedging costs categorized under foreign exchange losses
Interest, dividends, and other investment expenses from gains/losses on cancellation of
investment trusts
Portion of gains/losses on redemption of securities attributable to foreign exchange fluctuations
Other capital losses
Foreign exchange-related hedging costs categorized under foreign exchange gains
Interest, dividends, and other investment expenses from gains/losses on cancellation of
investment trusts
Other non-recurring gains
Reversal of reserve for claims and other payments
Other non-recurring losses
Provision of policy reserves in accordance with Article 69, Paragraph 5 of the Enforcement
Regulations of the Insurance Business Act

27

3,400

—

12,792

11,727

12,792

11,727

Fukoku Mutual Life Insurance Company

6. Non-consolidated Statements of Changes in Net Assets[For the year ended March 31, 2023](Millions of yen)Foundation funds, surplus and others
Surplus
Other surplus

Foundation
funds

Balance at the beginning of the fiscal year

12,000

Accumulated
foundation Reserve for Legal reserve
Reserve forReserve forfunds
revaluation
Reserve for Accumulated
advanced
for future
redemption
redeemed
dividend fund for price depreciation oflossesof foundation
fluctuation
real estate forallowances
funds
tax purpose

116,000

112

3,370

4,800

20,00041,000206

Total
surplus

Total foundation
funds, surplus
and others

57,078127,222

255,334(30,726)(30,726)(30,726)

(93)

—

—

(102)

(102)

(102)

30,87230,87230,872(2,400)

—

—

1

—

—

(284)

(284)

(284)

Other
reserves

Unappropriatedsurplus

767

Changes in the fiscal year
Additions to reserve for dividends topolicyholders

93

Additions to legal reserve for future losses
Payment of interest on foundation funds
Net surplus for the fiscal year
Additions to reserve for redemption offoundation funds

2,400

Reversal of reserve for advanced
depreciation of real estate for tax purpose(1)

Reversal of revaluation reserve for land,
net of tax
Net changes, excluding foundation funds,
surplus and others
Total changes in the fiscal year
Balance at the end of the fiscal year

—

—

—

93

2,400

—

—

(1)

—

(2,732)

(240)

(240)

12,000116,000

112

3,463

7,200

20,00041,000205

767

54,346

126,981

255,093

Valuation and translation adjustments
Net unrealized
gains (losses)
Total
Revaluation
valuation andon availablereserve fortranslation
for-saleland, net of tax
adjustments
securities, netof taxBalance at the beginning of the fiscal year

480,860

4,184

485,044

Total
net ssets

740,379

Changes in the fiscal year
Additions to reserve for dividends topolicyholders(30,726)

Additions to legal reserve for future losses—

Payment of interest on foundation funds(102)
30,872

Net surplus for the fiscal year
Additions to reserve for redemption offoundation funds—

Reversal of reserve for advanced
depreciation of real estate for tax purpose—

Reversal of revaluation reserve for land,
net of tax(284)

Net changes, excluding foundation funds,
surplus and others(93,978)284(93,694)(93,694)

Total changes in the fiscal year

(93,978)284(93,694)(93,935)

Balance at the end of the fiscal year

386,882

4,468

391,350

646,444

28

Fukoku Mutual Life Insurance Company

[For the year ended March 31, 2024](Millions of yen)Foundation funds, surplus and others
Surplus
Other surplus

Foundation
funds

Balance at the beginning of the fiscal year

12,000

Accumulated
foundation Reserve for Legal reserve
Reserve forReserve forfunds
revaluation
Reserve for Accumulated
advanced
for future
redemption
redeemed
dividend fund for price depreciation oflossesof foundation
fluctuation
allowances
real estate forfunds
tax purpose

116,000

112

3,463

7,200

20,00041,000205

Total
surplus

Total foundation
funds, surplus
and others

Other
reserves

Unappropriatedsurplus767

54,346

126,981

255,093(28,002)(28,002)(28,002)

(85)

—

—

(102)

(102)

(102)

39,78339,78339,783(2,400)

—

—

1

—

—

(32)

(32)

(32)

Changes in the fiscal year
Additions to reserve for dividends topolicyholders

85

Additions to legal reserve for future losses
Payment of interest on foundation funds
Net surplus for the fiscal year
Additions to reserve for redemption offoundation funds

2,400

Reversal of reserve for advanced
depreciation of real estate for tax purpose(1)

Reversal of revaluation reserve forland, net of tax
Net changes, excluding foundation funds,
surplus and others
Total changes in the fiscal year
Balance at the end of the fiscal year

—

—

—

85

2,400

—

—

(1)

—

9,163

11,647

11,647

12,000116,000

112

3,548

9,600

20,00041,000204

767

63,509138,628

266,740

Valuation and translation adjustments
Net unrealized
Total
gains (losses)
Revaluation
valuation andon availablereserve fortranslation
for-saleland, net of tax
securities, net
adjustmentsof taxBalance at the beginning of the fiscal year

386,882

4,468

391,350

Total
net ssets

646,444

Changes in the fiscal year
Additions to reserve for dividends topolicyholders(28,002)

Additions to legal reserve for future losses—

Payment of interest on foundation funds(102)
39,783

Net surplus for the fiscal year
Additions to reserve for redemption offoundation funds—

Reversal of reserve for advanced
depreciation of real estate for tax purpose—

Reversal of revaluation reserve for land,
net of tax(32)

Net changes, excluding foundation funds,
surplus and others

272,92632

272,958

272,958

Total changes in the fiscal year

272,92632

272,958

284,605

Balance at the end of the fiscal year

659,808

4,500

664,308

931,049

29

Fukoku Mutual Life Insurance Company

7. Non-consolidated Statements of Surplus(Millions of yen)

Year ended March 31, 2023

Year ended March 31, 2024

54,346

63,509

Reversal of voluntary surplus reserve11

Reversal of reserve for advanced depreciation of realestate for tax purpose

1

1

Total

54,34763,510Appropriation of surplus

30,58939,752

Reserve for dividends to policyholders

28,002

37,138Net surplus

2,587

2,614

Legal reserve for future losses

85

112

Interest payment for foundation funds

102

102

Voluntary surplus reserve

2,400

2,400

Reserve for redemption of foundation funds

2,400

2,400

23,75823,758Unappropriated surplus

Unappropriated surplus carried forward

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

30

Fukoku Mutual Life Insurance Company

8. Disclosed Claims Based on Insurance Business Act(Millions of yen)

As of March 31, 2023

As of March 31, 2024

Claims against bankrupt and quasi-bankrupt obligors

130

110

Claims with collection risk

544

508

Delinquent loans past three months or more——

Restructured loans

561

518

Subtotal[Percentage of total]

1,236[0.12%]

1,137[0.11%]

Claims against normal obligors

1,032,163

1,021,712

Total

1,033,399

1,022,850

Notes: 1. Claims against bankrupt and quasi-bankrupt obligors are loans to borrowers who are subject to bankruptcy,
corporate reorganization or rehabilitation or other similar proceedings and other borrowers in serious
financial difficulties.
Notes: 2. Claims with collection risk are loans to obligors (other than claims against bankrupt and quasi-bankrupt
obligors) with deteriorated financial condition and results of operations from which it is unlikely that the
principal and interest on the loans will be recovered.
Notes: 3. Delinquent loans past three months or more are loans for which interest payments or repayments 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 claims against bankrupt and quasi-bankrupt obligors, claims
with collection risk.
Notes: 4. Restructured loans are loans for which certain concessions favorable to borrowers, such as interest
reduction or exemption, rescheduling of due date for repayments 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 claims against bankrupt and quasibankrupt obligors, claims with collection risk, and delinquent loans past three months or more.
Notes: 5. Claims against normal obligors are all other loans.

31

Fukoku Mutual Life Insurance Company

9. Solvency Margin Ratio(Millions of yen)

As ofMarch 31, 2023

As ofMarch 31, 2024

1,836,582

2,265,213

Foundation funds and surplus

224,172

226,042

Reserve for price fluctuation

177,188

180,566

Contingency reserve

167,888

208,899404

330(Net unrealized gains (losses) on securities (before tax)
and deferred hedge gains (losses) (before tax)) × 90%

481,590822,613

Net unrealized gains on real estate × 85%

155,499

165,661

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

393,521396,562

Qualifying subordinated debt

241,935

267,260——

Deductible items(46,783)(46,783)

Others41,16444,061

323,968

394,956

Total solvency margin(A)

General allowance for possible loan losses

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

Total amount of risk

(B)

�(𝑅𝑅1 + 𝑅𝑅8 )2 + (𝑅𝑅2 + 𝑅𝑅3 + 𝑅𝑅7 )2 + 𝑅𝑅4

Insurance risk

R1

21,40521,022

3rd sector insurance risk

R8

10,092

10,116

Assumed investment yield risk

R2

21,074

20,037

Minimum guarantee risk

R7

—

—

Investment risk

R3

294,386

365,332

Business risk

R4

6,939

8,330

1,133.8%

1,147.0%

Solvency margin ratio
(A)
× 100
(1/2) × (B)Notes: 1. Above figures are calculated based on the provisions of Articles 86 and 87 of the Enforcement Regulation of the Insurance
Business Act and Ministry of Finance Notification No. 50, 1996.
Notes: 2. "Deductible items" represent the capital increase to the subsidiary, Fukokushinrai Life Insurance Co., Ltd.

Reference: Economic Solvency Ratio

Economic Solvency Ratio

As ofMarch 31, 2023

As ofMarch 31, 2024

233.8%

248.9%

Note: Economic solvency ratio (ESR) is an indicator of an insurance company’s soundness and indicates whether or not a company has
sufficient capital to cover its risks based on market-value assessment of its assets and liabilities. The Company calculates its ESR
according to European methodology.

32

Fukoku Mutual Life Insurance Company

10. Status of Separate Account(1) Separate Account Assets by Products(Millions of yen)

As of March 31, 2023

As of March 31, 2024

AmountAmountIndividual variable insurance——

Individual variable annuities——

Group annuities

118,783

141,452

Total

118,783

141,452(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, 2023
Number ofpolicies

As of March 31, 2024

AmountNumber ofpolicies

AmountIndividual variable annuities

—

—

—

—

Total

—

—

—

—

(ii) Breakdown of Separate Account Assets for Individual Variable Annuities(Millions of yen)

As of March 31, 2023
AmountAs of March 31, 2024

Percentage

AmountPercentage

Cash, deposits, call loans

—

—

—

—

Securities

—

—

—

—

Domestic bonds

—

—

—

—

Domestic stocks

—

—

—

—

Foreign securities

—

—

—

—

Foreign bonds

—

—

—

—

Foreign stocks and other securities

—

—

—

—

—

—

—

—

Loans

—

—

—

—

Others————Allowance for possible loan losses

—

—

—

—

Total

—

—

—

—

Other securities

33

Fukoku Mutual Life Insurance Company

(iii) Investment Income and Expenses of Separate Account for Individual Variable Annuities(Millions of yen)

Year ended March 31, 2023

Year ended March 31, 2024

AmountAmountInterest, dividends and other income

8—

Gains on sales of securities——

Gains on redemption of securities——

Gains on valuation of securities——

Foreign exchange gains, net——

Gains on derivative instruments——

Other investment income——

Losses on sales of securities——

Losses on redemption of securities——

Losses on valuation of securities

8—

Foreign exchange losses, net——

Losses on derivative instruments——

Other investment expenses——

Net investment income(0)—(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, 2023

As of March 31, 2024

Net valuation
Net valuation
Carrying value on gains/losses included in Carrying value on gains/losses included in
the statements ofthe statements ofthe balance sheet
the balance sheet
operations
operations

Trading securities

—

(8)

—

—

Note: The Company had no balances of money held in trust and derivative instruments.

34

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)
As of March 31, 2023
Carrying value on the
Net valuation gains/losses included
balance sheet
in the statement of operations
Trading securities

141,851

As of March 31, 2024
Carrying value on thebalance sheet(3,015)

Net valuation gains/losses includedin the statement of operations

152,490

19,935

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

Fair Value Information on Securities (other than trading securities)(Millions of yen)

As of March 31, 2023

As of March 31, 2024

Gains/Losses

Book value Fair value

Gains

Book value Fair value

LossesGains/Losses
Gains

Losses

Held-to-maturity debt securities

738,300

808,660

70,36070,42464

708,320759,424

51,104

51,104—

Domestic bonds

738,300

808,660

70,36070,42464

708,320759,424

51,104

51,104—Foreign bonds

—

—

—

—

—

—

—

—

—

—

Policy-reserve-matching bonds

—

—

—

—

—

290,573

283,026(7,546)

331

7,877
7,877

Domestic bonds

—

—

—

—

—

290,573

283,026(7,546)331

Foreign bonds

—

—

—

—

—

—

—

—

—

—

Investments in subsidiaries and affiliates

—

—

—

—

—

—

—

—

—

—

Available-for-sale securities

4,307,988

4,839,472

531,484

676,027

144,543

4,195,706

5,103,160

907,454 1,055,739

148,285

Domestic bonds

2,246,987

2,264,856

17,86899,271

81,402

1,987,603

1,935,087(52,516)

82,679135,195

Domestic stocks

352,575

739,891

387,316

389,227

1,911

346,904

928,443

581,539

582,045506

Foreign securities

1,574,356

1,675,753

101,396

160,374

58,977

1,717,017

2,045,310

328,292

339,444

11,152Foreign bonds

1,169,512

1,184,154

14,642

68,36953,727

1,292,421

1,445,869

153,447

161,326

7,879

Foreign stocks and other securities

404,844491,598

86,75492,0045,250

424,596

599,440

174,844

178,117

3,273

Other securities

134,069

158,971

24,902

27,1532,251

144,179

194,318

50,13851,570

1,431

Money held in trust

—

—

—

—

—

—

—

—

—

—

Monetary claims bought

—

—

—

—

—

—

—

—

—

—

Negotiable certificate of deposits

—

—

—

—

—

—

—

—

—

—

—

—

—

951,012 1,107,175

156,163

—

—

—

—

—

—

—

Total

Others

5,046,289

5,648,133

601,844746,451

144,607

5,194,599

6,145,611

Domestic bonds

2,985,287

3,073,516

88,228

169,695

81,4662,986,497

2,977,539(8,957)

134,115

Domestic stocks

352,575

739,891

387,316

389,227

1,911

346,904

928,443

581,539

582,045506

Foreign securities

1,574,356

1,675,753

101,396

160,374

58,977

1,717,017

2,045,310

328,292

339,444

11,152Foreign bonds

143,073

1,169,512

1,184,154

14,642

68,36953,727

1,292,421

1,445,869

153,447

161,326

7,879

Foreign stocks and other securities

404,844491,598

86,75492,0045,250

424,596

599,440

174,844

178,117

3,273

Other securities

134,069

158,971

24,902

27,1532,251

144,179

194,318

50,13851,570

1,431

Money held in trust

—

—

—

—

—

—

—

—

—

—

Monetary claims bought

—

—

—

—

—

—

—

—

—

—

Negotiable certificate of deposits

—

—

—

—

—

—

—

—

—

—

Others

—

—

—

—

—

—

—

—

—

—

Notes: 1. The table above includes assets which are considered appropriate to deem as securities under the Financial Instruments andExchange Law.
Notes: 2. The securities and investment partnerships without fair value are not included in the table above.

[Held-to-maturity Debt Securities]
As of March 31, 2023
Carrying value on
the balance sheet
Securities whose fair value exceeds the carrying valueon the balance sheet
Domestic bonds
Foreign bonds
Securities whose fair value does not exceed thecarrying value on the balance sheet
Domestic bonds
Foreign bonds(Millions of yen)
As of March 31, 2024
Carrying value on
Fair value
Differences
the balance sheet

Fair value

Differences

724,956

795,381

70,424

708,320759,424

51,104

724,956

795,381

70,424

708,320759,424

51,104

—

—

—

—

—

—

13,343

13,279

(64)

—

—

—

13,343

13,279

(64)

—

—

—

—

—

—

—

—

—

35

Fukoku Mutual Life Insurance Company

[Policy-reserve-matching bonds](Millions of yen)
As of March 31, 2023
Carrying value on
the balance sheet

As of March 31, 2024
Differences

71,11871,449331—

71,11871,449

331

—

—

—

—

—

219,454

211,577(7,877)——

219,454

211,577(7,877)

—

—

—

—

—

Differences

—

—

—

—

—

—

—

—

—

Domestic bonds—

Foreign bonds—

Bonds whose fair value exceeds the carrying valueon the balance sheet
Domestic bonds
Foreign bonds
Bonds whose fair value does not exceed the carrying
value on the balance sheet

Carrying value on
the balance sheet

Fair value

Fair value[Available-for-sale Securities](Millions of yen)
As of March 31, 2023

As of March 31, 2024

Book value

Carrying value on
the balance sheet

Differences

Book value

Carrying value on
the balance sheet

Differences

2,457,857

3,133,885

676,027

2,931,246

3,986,986

1,055,739

Domestic bonds

1,062,280

1,161,552

99,271

971,195

1,053,875

82,679Domestic stocks

334,225

723,453389,227

340,155922,201

582,045

Foreign securities

962,168

1,122,543

160,374

1,504,184

1,843,628

339,444

Foreign bonds

635,502703,872

68,369

1,112,825

1,274,151

161,326

Foreign stocks

326,665

418,670

92,004

391,359

569,476

178,117

99,183

126,337

27,153

115,711167,281

51,570

Money held in trust

—

—

—

—

—

—

Monetary claims bought

—

—

—

—

—

—

Negotiable certificate of deposits

—

—

—

—

—

—

Others

—

—

—

—

—

—

1,850,130

1,705,587(144,543)

1,264,459

1,116,173(148,285)

Domestic bonds

1,184,706

1,103,304(81,402)

1,016,408

881,212(135,195)

Domestic stocks

18,34916,438(1,911)

6,748

6,242

(506)

Foreign securities

612,188553,210(58,977)

212,833

201,681(11,152)

Foreign bonds

534,009480,282(53,727)

179,596

171,717(7,879)Foreign stocks

78,17872,928(5,250)33,23729,964(3,273)34,88532,634(2,251)

28,46827,037(1,431)

Money held in trust

—

—

—

—

—

—

Monetary claims bought

—

—

—

—

—

—

Negotiable certificate of deposits

—

—

—

—

—

—

Others

—

—

—

—

—

—

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

Other securities

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

Other securities• Book value of securities and investment partnerships without fair value are as follows:(Millions of yen)
As of March 31, 2023

As of March 31, 2024

Investments in subsidiaries and affiliates

64,78764,787Available-for-sale securities

36,05145,922

Domestic stocks

5,709

5,824

Foreign stocks——

30,34140,097

100,838

110,709

OthersTotal

Note: In this table, domestic and overseas investment partnerships are included in “Others” within“Available-for-sale securities.” However, unrealized gains on available-for-sale securities
corresponding to these holdings by domestic and overseas investment partnerships (¥3,616
million as of March 31, 2023 and ¥6,560 million as of March 31, 2024) are included in theirbalance sheet carrying amounts.

36

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(Millions of yen)Interest- related

Currency- related

Stock- related

Bond- related

OthersHedge accounting applied

—

(840)

—

—

—

(840)

Hedge accounting not applied

47

(561)

(31)

(137)

—

(683)

Total

47

(1,402)

(31)

(137)

—

(1,524)

Interest- related

Currency- related

Stock- related

Bond- related

Others

As of March 31, 2023

As of March 31, 2024

Total

Total

Hedge accounting applied

—

—

—

—

—

—

Hedge accounting not applied

—

(940)

(89)

—

—

(1,029)

Total

—

(940)

(89)

—

—

(1,029)Note: Gains and losses from applying fair value hedge accounting (currency-related losses of ¥840 million as of March 31, 2023) included ingains and losses with hedge accounting applied, and gains and losses with hedge accounting not applied are reported in the statements ofoperations.

(ii) Hedge Accounting not Applied[Interest-related Transactions](Millions of yen)

As of March 31, 2023
Notional amount/
Fair value
contract valueOver 1 year

Gains
(Losses)

As of March 31, 2024
Notional amount/
Fair value
contract valueOver 1 year

Gains
(Losses)Over-the-counter transactions
Yen interest rate swaption contracts
Sold
Receipt fixed, payment floating—[

Payment fixed, receipt floating

— ]
—

[

—

—
—

— [

—

— ]

— ]
—

—

— [

—
—

—

—

—

—

—

—

—

—

— ]

BoughtReceipt fixed, payment floating—[

Payment fixed, receipt floating— ]30,000

[

—

—
—

— [

—

63 ]

— ]
—

110

Total

47 [
47

—

— ]

—

—

Note: Figures in [ ] are option premiums which are included in the balance sheet.

37

Fukoku Mutual Life Insurance Company

[Currency-related Transactions](Millions of yen)

As of March 31, 2023
Notional amount/contract value
Fair valueOver 1 year
Over-the-counter transactions
Currency forward contracts
Sold
U.S. dollar
Australian dollar
Euro
British pound
Canadian dollar
Others

As of March 31, 2024
Notional amount/contract value
Fair valueOver 1 year

Gains
(Losses)

Gains(Losses)

46,03629,035
11,171
—
—
5,829
—

—
—
—
—
—
—
—

46,24029,202
11,131
—
—
5,906
—

(204)
(166)
40
—
—
(77)
—

25,337
15,972
9,104
94
89
—
76

—
—
—
—
—
—
—

25,76816,247
9,261
94
89
—
76

(430)
(274)
(156)
0
(0)
—
0

—
—
—
—
—

—
—
—
—
—

—
—
—
—
—

—
—
—
—
—

722
461
96
87
77

—
—
—
—
—

721
461
96
87
77

(0)
(0)
(0)
0
(0)

—
— ]

—
—

—

[

—
— ]

—

[

—

—

—
— ]

—
—

—

[

—
— ]

—

[

—

—

—
— ]
30,650475 ]
30,650
475 ]
—
— ]

—
—

[

—
— ]
36,960536 ]35,100
515 ]
1,860
20 ]

—

—

—

—

26

(509)

25

(490)

1

(18)
(940)

BoughtU.S. dollar
Euro
British pound
OthersCurrency options
Sold
Call
Put
BoughtCall[
Put[
U.S. dollar[
Australian dollar
[

—
118

(357) [—
118(357) [

—
—

— [
(561)

Total

—
—
—

Notes: 1. Forward exchange rates are used for exchange rates as of March 31, 2024.
Notes: 2. Figures in [ ] are option premiums which are included in the balance sheet.

[Stock-related Transactions](Millions of yen)

As of March 31, 2023
Notional amount/contract value
Fair valueOver 1 year
Exchange-traded transactions
Stock index options
Sold
Call
[
Put
[
Bought
Call
[
Put

—
— ]
—
— ]

—

—
— ]
8,800
39 ]

—

—

As of March 31, 2024
Notional amount/
Fair value
contract valueOver 1 year

Gains
(Losses)

—

[

—
—

—

[

—

—

[

—

[
8
Total
Note: Figures in [ ] are option premiums which are included in the balance sheet.

(31) [
(31)

—
— ]
—
— ]

—

—
— ]
6,150
90 ]

—

—

—

—

—

—

0

(89)
(89)

—

(Millions of yen)

As of March 31, 2023
Notional amount/contract value
Fair valueOver 1 year

Foreign currency-denominatedbond futures
Sold
BoughtTotal——[Bond-related Transactions]Exchange-traded transactions
Yen-denominated bond futures
Sold
Bought

Gains(Losses)

Gains(Losses)

As of March 31, 2024
Notional amount/contract value
Fair valueOver 1 year

Gains
(Losses)

7,268
—

—
—

7,406
—

(137)
—

—
—

—
—

—
—

—
—

—
—

—
—

—
—

—
—
(137)

—
—

—
—

—
—

—
—
—

38

Fukoku Mutual Life Insurance Company

(iii) Hedge Accounting Applied[Interest-related Transactions]
No ending balance as of March 31, 2023 and March 31, 2024.
[Currency-related Transactions](Millions of yen)

Method ofhedge
accounting

Hedging instruments
Currency forward contracts
Sold
U.S. dollar

Fair value
hedge
methodAustralian dollar

As of March 31, 2023
As of March 31, 2024
Notional amount/
Notional amount/contract value
contract value
Fair value
Fair value Hedged items
Hedged items
Over 1 year
Over 1 year
Foreign－currency—
191,105—— 191,946—
denominated——111,539— 112,485
—
bonds
—
—
53,68452,860——Euro14,743—

15,102———

Swedish krona

8,758

—

9,020

—

—

—

British pound

2,379

—

2,477

—

—

—

—

—

—

—

—

—

BoughtTotal

Notes:1. Forward exchange rates are used for exchange rates as of March 31, 2024.
Notes: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 thetable above.

[Stock-related Transactions]
No ending balance as of March 31, 2023 and March 31, 2024.
[Bond-related Transactions]
No ending balance as of March 31, 2023 and March 31, 2024.

39

Fukoku Mutual Life Insurance Company

11. Status of the Company, Subsidiaries and Affiliates(1) Selected Financial Data
(100 million of yen)

Year ended
March 31, 2023

Year ended
March 31, 2024

Ordinary revenues

10,286

10,637

Ordinary profits

344

533

Net surplus attributable to the parent company

316

381

Comprehensive income

(624)

3,325

Total assets
Solvency margin ratio

As of March 31, 2023

As of March 31, 2024

88,837

94,265

1,171.9%

1,189.7%(2) Scope of Consolidation and Application of Equity Method
Number of consolidated subsidiaries: 6
Number of unconsolidated subsidiaries accounted for under the equity method: 0
Number of affiliates accounted for under the equity method: 040

Fukoku Mutual Life Insurance Company

(3) Consolidated Balance Sheets(Millions of yen)
As of
As of
March 31, 2023 March 31, 2024

As of
As of
March 31, 2023 March 31, 2024

Assets:Liabilities:

Cash and deposits

524,841

396,782

Policy reserves:

7,540,406

7,704,135

Call loans

130,000

128,000

Reserve for outstanding claims

26,32628,805

Money held in trust

25,89723,502

Policy reserve

7,449,355

7,613,135

7,321,344

8,015,906

Reserve for dividends topolicyholders

64,42061,903Loans

527,561

503,151

Reserve for dividends topolicyholders (subsidiary)

304

290

Tangible fixed assets:

247,723

256,185

Agency payables

461

449

Land

149,747

149,483

Reinsurance payables

60

53

Buildings

89,751

101,477

Subordinated bonds

241,935

267,260

Lease assets

991

985

Other liabilities

208,704

175,739

Construction in progress

3,649

700

Net defined benefit liabilities

25,22010,914

Other tangible fixed assets

3,583

3,538

Reserve for price fluctuation

188,538

193,279

Intangible fixed assets:

28,69026,339Deferred tax liabilities

091,924

Software23,55820,421

Deferred tax liabilities for land
revaluation

14,164

14,132

Lease assets

2,635

2,065

Total liabilities

8,219,491

8,457,889

Other intangible fixed assets

2,497

3,852

Net assets:

Agency receivables

00Foundation funds

12,00012,000

Reinsurance receivables

83

121

Accumulated foundation funds
redeemed

116,000

116,000

Other assets

61,08557,951

Reserve for revaluation

112

112

Net defined benefit assets

1,184

15,696

Consolidated surplus

133,303

143,344

Deferred tax assets

16,131

3,634

Total foundation funds, surplus
and others

261,415

271,456

(826)

(703)

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

390,148

663,271

Revaluation reserve for land,
net of tax

4,468

4,500

Foreign currency translation
adjustment

(58)

257

Accumulated remeasurementsof defined benefit plans

274

21,087

Total accumulated othercomprehensive income

394,833

689,116

Non-controlling interests

7,977

8,104

664,226

968,677

8,883,718

9,426,567

Securities

Allowance for possible loan losses

Total net assets
Total assets

8,883,718

9,426,567

41

Total liabilities and net assets

Fukoku Mutual Life Insurance Company

(4) Consolidated Statements of Operations and Comprehensive Income[Consolidated Statements of Operations](Millions of yen)

Ordinary revenues:
Premium and other income
Investment income
Interest, dividends and other income
Gains on money held in trust, net
Gains on trading securities, net
Gains on sales of securities
Gains on redemption of securities, net
Foreign exchange gains, net
Reversal of allowance for possible loan losses
Other investment income
Gains on separate accounts, net
Other ordinary revenues
Total ordinary revenues
Ordinary expenses:
Claims and other payments
ClaimsAnnuities
Benefits
Surrenders
Other payments
Provision of policy reserve and others:
Provision of reserve for outstanding claims
Provision of policy reserves
Provision of interest portion of reserve for dividends to policyholders
Provision of interest portion of reserve for dividends to policyholders (subsidiary)
Investment expenses
Interest expenses
Losses on money held in trust, net
Losses on sales of securities
Losses on valuation of securities
Losses on redemption of securities, net
Losses on derivative instruments, net
Foreign exchange losses, net
Depreciation of real estate for rent and other assets
Other investment expenses
Operating expenses
Other ordinary expenses
Total ordinary expenses
Ordinary profits
Extraordinary gains:
Gains on disposal of fixed assets
Total extraordinary gains
Extraordinary losses:
Losses on disposal of fixed assets
Impairment losses
Provision of reserve for price fluctuation
100th anniversary bonuses and other losses
Total extraordinary losses
Provision of reserve for dividends to policyholders (subsidiary)
Surplus before income taxes
Income taxes:
Current
Deferred
Total income taxes
Net surplus
Net surplus (loss) attributable to non-controlling interests
Net surplus attributable to the parent company

42

Year ended
March 31, 2023

Year ended
March 31, 2024

760,603
253,691
182,754—348
55,764
11,702
—
624
322
2,174
14,327
1,028,622

758,323
294,016
193,0121,185
803
66,425
2,508
2,525
117
321
27,117
11,4081,063,748

679,967
144,133
288,512150,00271,84525,473
92,970—92,95613
090,607
4,479
161
46,995
3,608
185
11,2218,235
4,850
10,868101,175
29,486994,20734,415623,582
118,266
263,969
127,650
87,87925,817
166,272
2,478
163,78013
0
88,0094,262—
59,348
1,089
137
7,349
—
5,163
10,659104,824
27,673
1,010,362
53,385

393
393

33
33

182
32
845
—
1,060
173
33,574

202
657
4,741
4,467
10,069153
43,197

4,008(2,191)
1,816
31,757106
31,65014,678(9,778)
4,899
38,297
119
38,177

Fukoku Mutual Life Insurance Company

(4) Consolidated Statements of Operations and Comprehensive Income (Continued)[Consolidated Statements of Comprehensive Income](Millions of yen)

Year ended
March 31, 2023

Year ended
March 31, 2024

Net surplus

31,75738,297

Other comprehensive income:(94,229)294,273

Net unrealized gains (losses) on available-for-sale securities, net of tax(96,789)

273,145

254

315

2,305

20,812Comprehensive income:(62,472)

332,570

Comprehensive income attributable to the parent company(62,286)

332,428

(186)

142

Foreign currency translation adjustments
Remeasurements of defined benefit plan, net of tax

Comprehensive income attributable to non-controlling interests

43

Fukoku Mutual Life Insurance Company

(5) Consolidated Statements of Cash Flows(Millions of yen)

Cash flows from operating activities:
Surplus before income taxes
Depreciation of real estate for rent and other assets
Depreciation
Impairment losses
Increase (decrease) in reserve for outstanding claims
Increase (decrease) in policy reserve
Provision of interest portion of reserve for dividends to policyholders
Provision of interest portion of reserve for dividends to policyholders (subsidiary)
Provision of reserve for dividends to policyholders (subsidiary)
Increase (decrease) in allowance for possible loan losses
Increase (decrease) in reserve for claims and other payments
Increase (decrease) in net defined benefit liabilities
Increase (decrease) in reserve for price fluctuation
Interest, dividends and other income
Losses (gains) on securities, net
Interest expenses
Foreign exchange losses (gains), net
Losses (gains) on tangible fixed assets, net
Decrease (increase) in agency receivable
Decrease (increase) in reinsurance receivable
Decrease (increase) in other assets except from investing and financing activities
Increase (decrease) in agency payable
Increase (decrease) in reinsurance payable
Increase (decrease) in other liabilities except from investing and financing activities
OthersSubtotalInterest, dividends and other income received
Interest expenses paid
Dividends to policyholders paid
Dividends to policyholders paid (subsidiary)Corporate income tax (paid) refunded
Net cash provided by (used in) operating activities [a]Cash flows from investing activities:
Net decrease (increase) in deposits
Proceeds from sales and redemption of monetary claims bought
Increase in money held in trust
Decrease in money held in trust
Payments for purchase of securities
Proceeds from sales and redemption of securities
Payments for additions to loans
Proceeds from collections of loans
Proceeds from and payments for settlements of derivatives, net
Increase (decrease) in cash received as collateral under securities lending transactions
OthersSubtotal [b][a + b]
Payments for purchase of tangible fixed assets
Proceeds from sales of tangible fixed assets
Payments for purchase of intangible fixed assets
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Proceeds from issuance of subordinated bonds
Redemption of subordinated bonds
Payment of interest on foundation funds
Dividends paid to non-controlling interests
Payments for lease obligations
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the fiscal year
Cash and cash equivalents at the end of the fiscal year

44

Year ended
March 31, 2023

Year ended
March 31, 2024

33,5744,850
13,72032(1,392)
92,95613
0
173(1,689)(3,432)382
845(182,754)(7,817)
4,479
8,235
(218)
(0)
92
(5,974)295(43)(1,548)20,590(24,627)
185,806(4,450)(29,731)(192)(6,640)120,164

43,197
5,163
11,034657
2,478
163,780
13
0
153
(123)
—
88
4,741
(193,012)(30,114)
4,262(2,525)
120
(0)
(37)
(4,016)
(11)
(6)
1,961
22,17929,983
188,008(3,590)(30,532)(167)(1,628)
182,072(9,767)77——(983,240)
1,307,916(75,769)
96,953(146,423)(5,445)(9,853)
174,447
294,611(8,976)
1,036(8,863)
157,643(4,594)—(2,700)6,273(1,355,140)
1,078,987(66,140)
83,638(14,624)(34,183)(7,887)(316,371)(134,298)(16,085)95(7,346)(339,707)

—
—
(102)
(112)
(2,467)(2,681)(1,226)
273,899
366,999
640,899

74,260(49,870)(102)(15)(1,184)23,089(212)(134,757)
640,899
506,141

Fukoku Mutual Life Insurance Company

(6) Consolidated Statements of Changes in Net Assets[For the year ended March 31, 2023](Millions of yen)Foundation funds, surplus and others
Reserve forrevaluation

Consolidated
surplus

Total foundation
funds, surplus andothers112

132,765

260,877

Additions to reserve for dividends topolicyholders(30,726)(30,726)

Payment of interest on foundation funds

(102)

(102)

Net surplus attributable to the parent
company for the fiscal year

31,65031,650

Reversal of revaluation reserve forland, net of tax

(284)

(284)

AccumulatedFoundation funds foundation funds
redeemed
Balance at the beginning of the fiscal year

12,000116,000

Changes in the fiscal year

Net changes, excluding foundation
funds, surplus and others
Total changes in the fiscal year
Balance at the end of the fiscal year

—

—

—

537

537

12,000116,000

112

133,303

261,415

Accumulated other comprehensive income
Accumulated
Net unrealized
Revaluation Foreign currency
Total accumulated Non-controlling Total net assets
remeasurements
gains (losses) oninterests
reserve for land,
other comprehensive
translation
available- for-saleof defined
net of tax
incomeadjustments
benefit planssecurities, net of tax
Balance at the beginning of the fiscal year

486,644

4,184

(312)

(2,030)488,486

8,276

757,640

Changes in the fiscal year
Additions to reserve for dividends topolicyholders(30,726)

Payment of interest on foundation funds(102)

Net surplus attributable to the parent
company for the fiscal year

31,650

Reversal of revaluation reserve forland, net of tax(284)

Net changes, excluding foundation
funds, surplus and others(96,496)

284

254

2,305

(93,652)(298)(93,951)

Total changes in the fiscal year

(96,496)

284

254

2,305

(93,652)(298)(93,413)

Balance at the end of the fiscal year

390,148

4,468

(58)

274

394,833

7,977

664,226

45

Fukoku Mutual Life Insurance Company

[For the year ended March 31, 2024](Millions of yen)Foundation funds, surplus and others
Reserve forrevaluation

Consolidated
surplus

Total foundation
funds, surplus andothers112

133,303

261,415Additions to reserve for dividends topolicyholders(28,002)(28,002)

Payment of interest on foundation funds

(102)

(102)

38,177

38,177(32)(32)

AccumulatedFoundation funds foundation funds
redeemed
Balance at the beginning of the fiscal year

12,000116,000

Changes in the fiscal year

Net surplus attributable to the parent
company for the fiscal year
Reversal of revaluation reserve forland, net of tax
Net changes, excluding foundation
funds, surplus and others
Total changes in the fiscal year
Balance at the end of the fiscal year

—

—

—

10,041

10,041

12,000116,000

112

143,344

271,456

Accumulated other comprehensive income
Accumulated
Net unrealized
Revaluation Foreign currency
Total accumulated Non-controlling Total net assets
remeasurements
gains (losses) oninterests
reserve for land,
other comprehensive
translationof defined
available- for-salenet of tax
adjustments
incomebenefit planssecurities, net of tax
Balance at the beginning of the fiscal year

390,148

4,468

(58)

274

394,833

7,977

664,226

Changes in the fiscal year
Additions to reserve for dividends topolicyholders(28,002)

Payment of interest on foundation funds(102)

Net surplus attributable to the parent
company for the fiscal year

38,177

Reversal of revaluation reserve forland, net of tax(32)

Net changes, excluding foundation
funds, surplus and others

273,12232

315

20,812294,282127

294,409

Total changes in the fiscal year

273,12232

315

20,812294,282127

304,450

Balance at the end of the fiscal year

663,271

4,500

257

21,087689,116

8,104

968,677

46

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 MutualLife Insurance Company (the “Company”) and its consolidated subsidiaries in accordance with the provisions set forth in
the Insurance Business Act 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 incountries and jurisdictions other than Japan.
In addition, the notes to the consolidated financial statements include information which is not required underaccounting principles generally accepted in Japan but is presented herein as additional information.
Amounts of less than one million yen have been rounded down. As a result, the totals do not add up.

2. Principles of Consolidation(1) Scope of Consolidation
Consolidated subsidiaries as of March 31, 2024 are listed below:
Fukoku Capital Management, Inc.
Fukokushinrai Life Insurance Co., Ltd.
Fukoku Information Systems Co., Ltd.
Fukoku Life International (U.K.) Ltd.
Fukoku Life International (America) Inc.
Fukoku Life Investments Singapore Pte. Ltd.
Major unconsolidated subsidiary is Fukoku Business Service Company Limited.
Four subsidiaries are excluded from the scope of consolidation, as each one of them is small in its total assets,
amount of sales, net surplus for the period and surplus and are sufficiently insignificant to reasonable judgement on
their impact on the financial position and results of operation of the Company's group.
(2) Application of Equity Method
Unconsolidated subsidiaries (such as Fukoku Business Service Company Limited, etc.) are insignificant in theirimpact on net surplus attributable to the parent company and consolidated surplus, and also immaterial as a whole,
therefore, application of equity method is not applied.
There are no affiliates for the year ended March 31, 2024.
(3) Fiscal Year of Consolidated Subsidiaries
Among the subsidiaries to be consolidated, fiscal year-end of overseas subsidiaries is December 31. For the
preparation of consolidated financial statements, financial statements as of that date are used and concerning any
important transaction taking place in between December 31 and the consolidated closing date, necessary adjustments
for consolidation are made.

47

Fukoku Mutual Life Insurance Company

II. Notes to the Consolidated Balance Sheets
1. (1) The valuation of securities, including cash and deposits and monetary claims bought which are equivalent tosecurities, 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 the moving averagemethod.
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 determinedby the moving average method in accordance with “Temporary Treatment of Accounting and Auditing
Concerning Policy-reserve-matching Bonds in the Insurance Industry” (Industry Audit Committee Report No.21
issued by the Japanese Institute of Certified Public Accountants on November 16, 2000).
iv) Investments in unconsolidated subsidiaries and affiliates which are not accounted for under the equity
method are stated at cost, cost being determined by the moving average method.
v) Available-for-sale securities are stated at fair market value based on the market prices at the end of the
fiscal year. Costs of their sales are determined by the moving average method. Public and corporate
bonds (including foreign bonds) with differences between their acquisition costs and fair values that areconsidered as adjustments of interest are stated at amortized cost (straight-line method) determined by
the moving average method. However, stocks and other securities without quoted market prices arestated at cost, as determined using the moving average method. Net unrealized gains or losses on theseavailable-for-sale securities, net of taxes, are recorded as a separate component of net assets.
(2) Derivative instruments are stated at fair market value.
(3) The Company revalued the land used in the operations based on the Act for Revaluation of Land (Act 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 separate component of net assets and the related
tax is recorded as deferred tax liabilities for land revaluation.
• Date of revaluation: March 31, 2002
• Method of revaluation as prescribed for in Article 3 Paragraph 3 of the said Act:
Calculation is based on the appraisal value for property tax set forth in Article 2 item 3 of the
Enforcement Ordinance of the Act 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 reasonableadjustments.
(4) Depreciation of the Company’s tangible fixed assets is calculated by the following methods.
• Tangible fixed assets (excluding lease assets): Declining-balance method
However, buildings (excluding building attachments and structures acquired on or before March 31, 2016)acquired on or after April 1, 1998 are depreciated using Straight-line method.
• Lease assets related to finance lease transactions that do not transfer ownership: Straight-line method over thelease term with no residual value.
Other tangible fixed assets acquired for ¥100,000 or more but less than ¥200,000 are depreciated equally
over three years.
(5) Assets and liabilities denominated in foreign currencies, except for investments in unconsolidated subsidiaries andaffiliates, are translated into Japanese yen at the effective exchange rate prevailing at the balance sheet date.
Investments in unconsolidated subsidiaries and affiliates are translated into Japanese yen at the exchange rate on thedate of acquisition.
48

Fukoku Mutual Life Insurance Company

(6) Allowance for possible loan losses for the Company is provided in accordance with the standards of self-assessment
and write-offs and reserves on credit quality:i) For the credits of borrowers who are legally bankrupt such as being in the proceedings of bankruptcy or civil
rehabilitation (hereinafter called “legally bankrupt borrowers”) and who are substantially bankrupt (hereinafter
called “substantially bankrupt borrowers”), the Company provides the remaining amounts of credits after the
direct write-off described below and the deductions of the amount expected to be collected through the disposalof collateral or the execution of guarantees.
ii) For the credits of borrowers who are not currently bankrupt but have a high possibility of bankruptcy(hereinafter called “not currently bankrupt borrowers”), the Company provides the amounts deemed asnecessary considering the borrowers’ ability to pay, within the amounts after deductions of the amounts
expected to be collected 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 of selfassessment on credit quality. The results of the assessment are reviewed by the audit department, which is
independent of business-related divisions. Subsequently, the allowance for possible loan losses is 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 of guarantees are written-off
directly from the borrowers’ balances as the estimated uncollectible amounts. The amount written-off as of March 31,
2024 was ¥0 million.
(7) Net defined benefit liabilities and assets, which are provided for employees’ retirement benefits, are calculated bydeducting the amount of pension assets from the amount of retirement benefit obligations incurred as of the balance
sheet date based on the projected retirement benefits as of the current fiscal year end.
The Company uses the following methods of accounting in relation to retirement benefits:• Method for allocation of projected retirement benefits ........................

Benefit formula basis• Amortization period of actuarial gains and losses.................................

10 years• Amortization period of prior service cost..............................................

10 years(8) Reserve for price fluctuation is calculated in accordance with Article 115 of the Insurance Business Act.
(9) Hedge accounting is based on "Accounting Standards for Financial Instruments" (ASBJ Statement No. 10, July 4,2019). The Company applies a fair value hedge accounting as a hedge against the risk of foreign exchange fluctuationin relation to bonds and others denominated in foreign currencies, and a designated hedge accounting (“Furiate shori”)
for foreign currency swaps as a hedge against the risk of foreign exchange fluctuation in relation to bonds
denominated in foreign currencies issued by the Company.
For assessing the effectiveness of hedge used, ratio analysis of comparing the fluctuations in the fair value orcash flows of hedged items and hedging instruments is mainly applied.
(10) 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 Act,are deferred as prepaid expenses and amortized equally over five years. Consumption taxes other than deferredconsumption taxes are recognized as an expense when incurred.

49

Fukoku Mutual Life Insurance Company

(11) Initial premium incomes are recorded by the relevant amounts received when the premium incomes have been
received and the responsibilities on the insurance contract have been commenced, in principal.
Subsequent premium incomes are also recorded as the amount of payments that have been received.
Of premium incomes that have been received, the portion corresponding to the period that has yet to pass as ofthe end of the fiscal year is accumulated as policy reserve in accordance with Article 116 of the Insurance BusinessAct and Article 69 Paragraph 1 Item 2 of the Enforcement Regulation of the Insurance Business Act.
Premium incomes associated with the acceptance of group annuities are recorded as amounts equivalent to thepolicy reserve received when accepting the transfers of these group annuities.
(12) Claims and other payments (excluding reinsurance premiums) are recorded by the relevant amounts paid when thecause for payment under the policy conditions is occurred and the calculated amounts are paid based on the policy
conditions.
In accordance with Article 117 of the Insurance Business Act and Article 72 of the Enforcement Regulation of
the Insurance Business Act, reserve for outstanding claims are accumulated as for claims for which the Company has
a payment due but has not paid, or for which the occurrence of cause for payment has not been reported but theCompany recognizes that insured payment has already occurred as of the end of the fiscal year.
Regarding claims for which the occurrence of cause for payment has not been reported but the Company
recognizes that insured payment has already occurred (“IBNR reserves”), the special treatment providing payment of
hospitalization benefits with respect to those diagnosed with COVID-19 and were under the care of a doctor or the
like at an lodging facility or at home (“deemed hospitalization”) was discontinued on May 8, 2023. As a result of thischange, an appropriate amount of reserves cannot be obtained with the calculation method set forth in the main rules
in Article 1, Paragraph 1 of the Notification of the Minister of Finance No.234, 1998 (“IBNR Notification”). The
Company therefore records the amount that was calculated using the following method, pursuant to provisions in theproviso of Article 1, Paragraph 1 of IBNR Notification (the “Proviso”).
(Overview of the calculation method)
The Company first deducts an amount pertaining to deemed hospitalization of policy holders from a required amountof IBNR reserves and the amount of claim payments for all the fiscal years, as set forth in the main rules in Article 1,
Paragraph 1 of IBNR Notification, and then calculates in the same manner as in the main rules in Article 1, Paragraph
1 of IBNR Notification.
Furthermore, at the end of the previous fiscal year, instead of the amount related to the deemed hospitalization,
the amount related to the deemed hospitalization other than those with a high risk of severity was deducted, but due tothe termination of treatment of hospitalization benefits for deemed hospitalizations during the fiscal year, we haverevised the calculation method to deduct the amount related to such deemed hospitalizations.
Claims and other payments associated with the outgoing transfer of group annuities are recorded as amounts
equivalent to the policy reserve transferred when recognizing the transfers of these group annuities.
(13) Policy reserve of the Company is accumulated in accordance with the methods stated in the statement of calculation
procedures for Insurance Premiums and Policy Reserves (Article 4 Paragraph 2 Item 4 of the Insurance Business Act)
pursuant to Article 116 Paragraph 1 of the Insurance Business Act to prepare for the future performance of obligations
under the insurance contracts for which the insurer’s responsibilities have started as of the end of the consolidated
fiscal year.
Premium reserves, one of the components of policy reserve, are calculated by the following method.
i) In regard to the policies subject to the standard policy reserve, the method as prescribed by the Commissioner ofFinancial Services Agency (Ministry of Finance Ordinance No.48, 1996) is applied.
ii) In regard to the policies not subject to the standard policy reserve, the net level premium method is applied.

50

Fukoku Mutual Life Insurance Company

In regard to the policy reserve accumulated pursuant to Article 69 Paragraphs 1,2, and 4 of the Enforcement
Regulation of the Insurance Business Act, when the actual assumptions for long-term future cash flows (such asassumed incidence rate and assumed interest rate) deviate from those assumptions set in the “statement of calculation
procedures for Insurance Premiums and Policy Reserves” and policy reserve is considered to be possibly insufficient
to cover the future performance of obligations, additional policy reserve is required to accumulate in accordance with
Article 69 Paragraph 5 of the Enforcement Regulation of the Insurance Business Act. The following reserves havebeen established in compliance with this regulation.
• Among individual annuity insurance policies with an assumed interest rate of 5.00% or higher, for policies thathave begun paying annuities (excluding wife’s annuity insurance additional rider), the Company has reduced theassumed interest rate to 1.00% and funded additional policy reserves. As of March 31, 2024, the balance of thesepolicy reserves was ¥69,848 million.
• Among whole life insurance policies with assumed interest rates of 5.00% or higher following the fiscal year ended
March 31, 2024, the Company has reduced assumed interest rates for policies with premiums that have been paid infull (excluding policies that have been converted into paid-up or extended policies, single premium policies, andpolicies for which premiums have been waived) to 1.00% and funded additional policy reserves. As of March 31,
2024, the balance of these policy reserves was ¥105,883 million.
• The Company has also funded additional policy reserves for certain whole life insurance policies that include
distribution of surplus every five years, new cancer riders, highly advanced medical riders and transplant medical
riders. As of March 31, 2024, the balance of these policy reserves was ¥84 million.
Appointed actuary, for each fiscal year, verify whether policy reserves have been reasonably accumulated
in accordance with Article 121 Paragraph 1 of the Insurance Business Act and Article 80 of the Enforcement
Regulation of the Insurance Business Act.
Contingency reserves, one of the components of policy reserve, are accumulated pursuant to Article 116 of
the Insurance Business Act and Article 69 Paragraph 1 Item 3 of the Enforcement Regulation of the Insurance
Business Act to cover risks that may accrue in the future in order to ensure performing future obligations under the
insurance contracts.
(14) Depreciation of intangible fixed assets is calculated by the following methods.
• Software: Straight-line method over the estimated useful lives.
• Lease assets related to finance lease transactions that do not transfer ownership: Straight-line method over thelease term with no residual value.
(15) Of the bonds corresponding to the sub-groups of individual insurance, individual annuities, and group annuities which
are set by insurance types and investment policies, the bonds that are held to match the duration of liabilities areclassified as policy-reserve-matching 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 JICPA on November 16, 2000).

2. Asset management of the general accounts other than the separate accounts stipulated in Article 118 Paragraph 1 of the
Insurance Business Act is conducted on the principle of prudent and profitable investments by the Company, considering
public and social responsibilities of the insurance business. Based on this policy, the Company allocates the fund,securing its liquidity, from the medium-to-long term viewpoints. The Company is diversifying investments in assets suchas foreign securities, stocks and real estates within the acceptable range of risk in order to enhance the profitability,
although yen-denominated interest bearing assets including debt securities such as Japanese government bonds and loans
are the cores of the portfolios under the asset liability management. Derivatives are mainly used to hedge the market risk
regarding spot-priced assets and liabilities.
Major financial instruments including securities, loans and derivatives are exposed to market risk and credit risk.
51

Fukoku Mutual Life Insurance Company

The Company manages its asset management risk by establishing internal control systems including various rules
pursuant to the “Three Basic Rules related to Enterprise Risk Management” established by the Board of Directors.
Specifically, the Company eliminates excessive risk deviating from the basic principle and secures the safety of theassets 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 the market risk and credit risk using value-at-risk (VaR) method in order to control thepossible maximum losses which may arise from the holding assets within a certain range of risk buffers.
The carrying amounts, fair values and their related differences of major financial assets and liabilities in thegeneral account as of March 31, 2024 were as follows:(Millions of yen)

Carrying amountMoney held in trust:
Trading securities.........................……………...................
Total money held in trust.....................................................
Securities:
Held-to-maturity debt securities..........................................
Policy-reserve-matching bonds……………………………
Available-for-sale securities....................……………........
Total securities.......................................……………..........
Loans:
Policy loans............................................…………..…........
Ordinary loans.........................................…………….........
Total loans...............................................………….............
Assets total...............................................…………….......…......
Subordinated bonds*1........................………………...…..........
Liabilities total…..........................................……………....…....
Derivative instruments*2:
Hedge accounting not applied...........……….……..............
Total derivative instruments.........……………..................

Fair value

Difference¥22,50222,502¥22,50222,502¥——

1,214,754
1,265,018
5,353,256
7,833,029

1,289,968
1,233,702
5,353,256
7,876,927

75,213(31,316)—
43,89749,348453,802503,151
8,358,683
267,260
267,260

49,348458,559
507,908
8,407,337
263,910
263,910

(0)
4,756
4,756
48,654(3,349)(3,349)(1,029)¥(1,029)(1,029)¥(1,029)—¥—*1 The fair value of derivative instruments that are currency swaps under designated hedge accounting is included in the fair valueof subordinated bonds because it is accounted for as an integral part of the subordinated bonds that are the hedge items.
*2 Assets and liabilities generated by derivative instruments are offset and presented net. Net liabilities in total are presented inparentheses.
Notes: 1. Stocks without market prices, such as unlisted stocks, are not included in Securities of the above table.
The amount of these stocks on the balance sheet as of March 31, 2024 was ¥9,229 million.
Notes: 2. In accordance with Paragraph 24-16 of the "Implementation Guidance on Accounting Standard for Fair Value
Measurement" (ASBJ Guidance No.31, June 17, 2021. Hereinafter called “Implementation Guidance on AccountingStandard for Fair Value Measurement”), investments in partnerships are not included in Securities of the above table.
As of March 31, 2024, the amount of investments in partnerships included on the balance sheet was ¥43,658 million.
Notes: 3. Investment trusts with real estate as investment trust properties which have applied Paragraph 24-9 of the
Implementation Guidance on Accounting Standard for Fair Value Measurement are included in Securities.

3. Matters concerning the breakdown of financial instruments by fair value level are as follows.
The fair values of financial instruments are classified into the following three levels according to the observability andmateriality of inputs used to measure fair value.
Fair Value Level 1: Fair values measured using (unadjusted) quoted prices in active markets for identical assets or
liabilities
Fair Value Level 2: Fair values measured using directly or indirectly observable inputs other than Level 1 inputs
Fair Value Level 3: Fair values measured using material unobservable inputs

52

Fukoku Mutual Life Insurance Company

When multiple inputs with material impact are used to measure fair value, the resulting fair value is classified into thelowest fair value level into which any of these inputs can be categorized.
(1) Financial assets and liabilities with fair values recorded on the balance sheet as of March 31, 2024
(Millions of yen)
Fair value

Classification

Level 1

Money held in trust:
Trading securities........................…….....
Total money held in trust..........................
Securities:
Available-for-sale securities:
Government bonds……………….…...
Local government bonds………….….
Corporate bonds……………….….….
Stocks………………………………...
Foreign securities…………………….
Other securities………………………
Total available-for-sale securities……
Total securities........................…….....
Assets total.....................………………..........
Derivative instruments*:
Currency-related………………..............
Stock-related……………………............
Total derivative instruments...….............

Level 2

Level 3

Total

¥—
—

¥22,50222,502¥——¥22,50222,502

1,394,506——
928,657
905,046
65,823
3,294,033
3,294,033
3,294,033—
113,621658,552—
1,113,911
136,8392,022,924
2,022,924
2,045,426————
26,352—
26,352
26,352
26,352

1,394,506
113,621658,552
928,657
2,045,310
202,662
5,343,310
5,343,310
5,365,813

—
(89)
¥(89)

(940)
—
¥(940)

—
—
¥—

(940)
(89)
¥(1,029)* Assets and liabilities generated by derivative instruments are offset and presented net. Net liabilities in total are presented
in parentheses.
Note: Investment trusts with real estate as investment trust properties that have applied Paragraph 24-9 of the Implementation
Guidance on Accounting Standard for Fair Value Measurement are not included in the figures above. The amount of theinvestment trusts on the balance sheet as of March 31, 2024 was ¥9,945 million. Reconciliation of balances from the
beginning of the current fiscal year to balances as of March 31, 2024 for the investment trusts were as follows:(Millions of yen)

Balance at the beginning of the fiscal year…………………………..……...
Gains or losses and other comprehensive income during the fiscal year…
Values recognized as other comprehensive income*……………….….
Purchase, sales, and redemption……………………………….…………
Purchase…………………………………………………………..……
Balance at the end of the fiscal year……………………………………...…

¥5,596
203
203
4,146
4,146
¥9,945* These amounts are included in net unrealized gains (losses) on available-for-sale securities,
net of tax under other comprehensive income in the consolidated statements ofcomprehensive income for the fiscal year ended March 31, 2024.

53

Fukoku Mutual Life Insurance Company

(2) Financial assets and liabilities with fair values not recorded on the balance sheet as of March 31, 2024
(Millions of yen)
Fair value

Classification
Securities:
Held-to-maturity debt securities:
Government bonds……………….…...
Local government bonds……….….….
Corporate bonds….………………..….
Total held-to-maturity debt securities...
Policy-reserve-matching bonds:
Government bonds…………….……...
Local government bonds….……….….
Corporate bonds……..…………….….
Total policy-reserve-matching bonds…
Total securities.............................…….
Loans:
Policy loans.................................…..........
Ordinary loans.......................…................
Total loans................................….............
Assets total.........................................…….......
Subordinated bonds……………………….....
Liabilities total..........………………….….......

Level 1

Level 2

Level 3

Total

¥1,113,884——
1,113,884¥—
90,99685,087
176,084¥————¥1,113,884
90,99685,087
1,289,968

781,655——
781,655
1,895,539—
120,376
331,670452,047
628,131—————781,655
120,376
331,670
1,233,702
2,523,670———
1,895,539
—
¥—

—
—
—
628,131
263,910¥263,910

49,348458,559
507,908
507,908—¥—

49,348458,559
507,908
3,031,579
263,910¥263,910(3) Explanation of valuation techniques and inputs used to measure fair valuei) Securities (including deposits and monetary claims bought which are treated as securities based on “AccountingStandards for Financial Instruments” [ASBJ Statement No.10, July 4, 2019])
The fair values of securities for which unadjusted quoted market prices in active markets are available (primarily
listed stocks and government bonds [including some foreign securities]) are classified as Fair Value Level 1.
Meanwhile, the fair values of securities for which quoted market prices are available, but are not available inactive markets, are classified as Fair Value Level 2 (This category primarily includes local government bonds andcorporate bonds [including some foreign securities]). When quoted market prices are not available for securities,
prices obtained from third parties (mainly from information vendors and financial institutions with which theCompany conducts business) and determined to have been measured in accordance with prescribed accounting
standards are used to measure the fair values of these securities. If the inputs used to measure the fair value of agiven security are material but unobservable, the resulting fair value is classified as Fair Value Level 3.
ii) Money held in trust
In principle, the fair values of securities managed as trust assets and classified as money held in trust aremeasured using the Company's prescribed method for determining the value of securities. These fair values are
categorized as Fair Value Level 2.
iii) Loans
The fair values of policy loans are deemed to approximate book values, considering estimated repayment period
and interest rate conditions since their repayment deadlines have not been set up due to the characteristics that theloans are limited to the amount of cash surrender values. Therefore, the book values are used as the fair values ofpolicy loans.
The fair values of floating interest rate loans among the ordinary loans approximate the book values
because the market interest rates are reflected in future cash flows in a short period. Therefore, the fair values offloating interest rate loans are used as their book values. The fair values of fixed interest rate loans are primarily
calculated by discounting the future cash flows to the present values.
54

Fukoku Mutual Life Insurance Company

The fair values of loans from legally bankrupt borrowers, substantially bankrupt borrowers and not
currently bankrupt borrowers are computed by deducting the amount of the allowance for possible loan losses
from the book values before direct write-offs.
Because significant unobservable inputs used to measure the fair values of loans, the resulting fair values
are classified as Fair Value Level 3.
iv) Subordinated bonds
The fair values of corporate bonds issued by the Company are classified as Fair Value Level 2 and are measured
using the same method applied to securities.
v) Derivative instruments
The fair values of derivative instruments for which unadjusted quoted market prices in active markets areavailable (primarily exchange-traded futures and options) are classified as Fair Value Level 1. However, mostderivative instruments are traded over the counter and have no quoted market prices. Accordingly, prices obtained
from third parties (mainly from information vendors and financial institutions with which the Company conducts
business) and determined to have been measured in accordance with prescribed accounting standards are used tomeasure the fair values of these derivative instruments. Fair values of derivative instruments that were measured
using only observable inputs or with unobservable inputs considered to be immaterial are classified as Fair Value
Level 2. Meanwhile, fair values of derivative instruments that have been measured using material unobservable
inputs are categorized as Fair Value Level 3.
(4) Information concerning fair values of financial assets and liabilities that have been recorded on the balance sheet as ofMarch 31, 2024 and classified as Fair Value Level 3i) Quantitative information regarding material unobservable inputs
When measuring fair value, the Company does not adjust quoted prices obtained from third parties and does notmake estimates related to inputs that it cannot observe. Accordingly, quantitative information regarding material
unobservable inputs have been omitted.
ii) Reconciliation of balances at the beginning of the current fiscal year and balances as of March 31, 2024, andvaluation gains or losses recognized in the statements of operations for the consolidated fiscal year ended March
31, 2024.
(Millions of yen)
Securities,
Available-for-sale securities,
Foreign securities

Total

Balance at the beginning of the fiscal year…………………...
Gains or losses and other comprehensive income during
the fiscal year…………..……………………………....…

¥26,490¥26,490

(137)

(137)

Values recognized as gains or losses*1..……………...…

(10)

(10)

Values recognized as other comprehensive income …..

(127)

(127)

Balance at the end of the fiscal year………………..……...…

¥26,352¥26,352*2*1 These amounts are included in investment income and investment expenses in the consolidated statements ofoperations for the fiscal year ended March 31, 2024.
*2 These amounts are included in net unrealized gains (losses) on available-for-sale securities, net of tax under othercomprehensive income in the consolidated statements of comprehensive income for the fiscal year ended March
31, 2024.

iii) Explanation of the valuation process for fair value
The Company's asset management division is responsible for the formulation of policies and procedures related tothe measurement of fair value and the actual measurement of fair value. These fair values are subsequently
checked by the risk management department to ensure their appropriateness and compliance with relevant
policies and procedures.

55

Fukoku Mutual Life Insurance Company

The Company verifies the appropriateness of the fair values it measures using a variety of suitable
methods, which include comparing quoted market prices obtained from different third parties; confirming
techniques and inputs utilized for calculation; and further comparing measured fair values with the fair values ofsimilar financial instruments.
iv) Explanation of the impact on fair value in case of change in material unobservable inputs
When measuring fair value, the Company does not adjust quoted prices obtained from third parties and does notmake estimates related to inputs that it cannot observe. Accordingly, it has omitted information concerning impact
on fair value stemming from changes in material unobservable inputs.

4. The Company holds investment and rental properties such as office buildings in Tokyo and other areas. The carrying
amounts and the fair values of investment and rental properties were ¥206,835 million and ¥369,871 million as of March
31, 2024, respectively. The fair value is mainly based on the value calculated by the Company in accordance with realestate appraisal standards which includes some adjustments using the reference prices.
The amount corresponding to asset retirement obligations included in the carrying amount of investment and rental
properties was ¥277 million as of March 31, 2024.

5. The amount of securities lent under lending agreements was ¥518,568 million as of March 31, 2024.

6. The total amount of claims against bankrupt and quasi-bankrupt obligors, claims with collection risk, delinquent loans
past three months or more, and restructured loans was ¥1,160 million as March 31, 2024. The details are as follows.
i) The balance of claims against bankrupt and quasi-bankrupt obligors was ¥133 million as of March 31, 2024.
Of which, the estimated uncollectible amount written-off was ¥0 million as of March 31, 2024.
Claims against bankrupt and quasi-bankrupt obligors are loans to borrowers who are subject to bankruptcy,
corporate reorganization or rehabilitation or other similar proceedings and other borrowers in serious financial
difficulties.
ii) The balance of claims with collection risk was ¥508 million as of March 31, 2024.
Claims with collection risk are loans to obligors (other than bankrupt and quasi-bankrupt obligors) with deteriorated
financial condition and results of operations from which it is unlikely that the principal and interest on the loans will
be recovered.
iii) There was no balance of delinquent loans past three months or more as of March 31, 2024.
Delinquent loans past three months or more are loans for which interest payments or repayments of principal aredelinquent for three months or more from the due date under the terms of the related loan agreements, excluding
those loans classified as claims against bankrupt and quasi-bankrupt obligors, claims with collection risk.
iv) The balance of restructured loans was ¥518 million as of March 31, 2024.
Restructured loans are loans for which certain concessions favorable to borrowers, such as interest reduction or
exemption, rescheduling of due date for repayments of principal or interest payment, waiver of claim 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 claims against bankrupt and quasi-bankrupt obligors, claims withcollection risk, and delinquent loans past three months or more.

56

Fukoku Mutual Life Insurance Company

7. Accumulated depreciation of tangible fixed assets were ¥183,509 million as of March 31, 2024.

8. Total assets in separate accounts provided for in Article 118 of the Insurance Business Act were ¥141,452 million as ofMarch 31, 2024. The amounts of separate account liabilities were the same as separate account assets.

9. The total amounts of receivables from/payables to unconsolidated subsidiaries were ¥2,914 million and ¥40 million as ofMarch 31, 2024, respectively.

10. The total amount of monetary obligations owed to directors was ¥3 million as of March 31, 2024.

11. Deferred tax assets and deferred tax liabilities as of March 31, 2024 were ¥186,185 million and ¥269,459 million,
respectively. Valuation allowance for deferred tax assets was ¥5,016 million.
Major components of deferred tax assets were ¥114,810 million of policy reserves, ¥54,118 million of reserve forprice fluctuation and ¥8,742 million of net defined benefit liabilities as of March 31, 2024.
Major component of deferred tax liabilities was ¥255,853 million of net unrealized gains on available-for-salesecurities as of March 31, 2024.
The statutory tax rate and the actual effective tax rate for the year ended March 31, 2024 were 28.0% and 11.3%,
respectively. The difference between the statutory tax rate and the actual effective tax rate was attributable mainly to-24.1% of reserve for dividends to policyholders.

12. Changes in reserve for dividends to policyholders for the year ended March 31, 2024 were as follows:(Millions of yen)

Balance at the beginning of the fiscal year….......................................................

¥ 64,420

Transfer from surplus in the previous fiscal year.................................................

28,002

Dividend payments to policyholders during the fiscal year…..………………...

(30,532)

Increase in interest....................................................………………..……..........

13

Balance at the end of the fiscal year.....................................................................

¥ 61,903

13. Changes in reserve for dividends to policyholders (Fukokushinrai Life Insurance Co., Ltd.) for the year ended
March 31, 2024 were as follows:(Millions of yen)

Balance at the beginning of the fiscal year….......................................................

¥304

Dividend payments to policyholders during the fiscal year…..………………...

(167)

Increase in interest....................................................……………..………..........

0

Provision of reserve for dividends to policyholders…………………..…….….

153

Balance at the end of the fiscal year.....................................................................

¥ 290

14. The amount of stocks of unconsolidated subsidiaries was ¥404 million as of March 31, 2024.

15. Assets pledged as collateral as of March 31, 2024 were ¥138,648 million of securities.
Secured debts as of March 31, 2024, were ¥127,337 million.
57

Fukoku Mutual Life Insurance Company

These amounts include ¥114,460 million of investments in securities deposited and ¥121,299 million of cash
received as collateral under securities lending transactions secured by cash as of March 31, 2024.

16. Reserve for outstanding claims for the reinsurance contracts provided in accordance with Article 71 Paragraph 1 of the
Enforcement Regulation of the Insurance Business Act (hereinafter called “reserve for outstanding claims for ceded
reinsurance”) was ¥0 million as of March 31, 2024.
Policy reserve for the reinsurance contracts provided in accordance with Article 71 Paragraph 1 of the
Enforcement Regulation of the Insurance Business Act (hereinafter called “policy reserve for ceded reinsurance”) was ¥33
million as of March 31, 2024.

17. There were unused commitment line agreements under which the Company is the lender of ¥4,344 million as of March
31, 2024.

18. Repayments of subordinated bonds are subordinated to other obligations.

19. Matters Related to Employees’ Retirement Benefits as of March 31, 2024
(1) Overview of Employees’ Retirement Benefit Plan
As for a defined benefit plan for office-based employees, the Company and its consolidated subsidiaries have adefined benefit corporate pension plan and retirement lump-sum payments. As for a defined contribution plan forthese employees, the Company also has a defined contribution pension plan.
Furthermore, the retirement benefit plan for internal service employees was revised at the end of September
2023 due to factors including the raising of the retirement age to 65, resulting in a prior service cost of-6,929 million yen.
As for a defined benefit plan for sales employees, the Company has retirement lump-sum payments.
The Company places a retirement benefit trust in relation to the retirement lump-sum grant plan forsales employees.
The simplified method for calculating retirement benefit obligation is applied to a portion of the Company andsome consolidated subsidiaries’ retirement lump-sum grant plans.
(2) Defined Benefit Plani) Reconciliation of beginning and end of balance of retirement benefit obligation(Millions of yen)

Retirement benefit obligation at the beginning of the fiscal year…….………
Service cost………………………………………………………….……..
Interest cost………………………………………………………….……..
Actuarial differences occurred during the fiscal year……………………..
Retirement benefit payments………………………………………………
Prior service cost………………………………………..………..………..
Retirement benefit obligation at the end of the fiscal year……………………

58¥90,953
3,696
520(9,156)(3,766)(6,929)¥75,319

Fukoku Mutual Life Insurance Company

ii) Reconciliation of beginning and end of balance of pension plan assets(Millions of yen)

Pension plan assets at the beginning of the fiscal year……………….………
Expected return on pension plan assets…………….……………….……..
Actuarial differences occurred during the fiscal year……………………..
Contributions by the employer…………………………………………....
Retirement benefit payments………………………………………………
Others………………………………………………………………………
Pension plan assets at the end of the fiscal year…………………..….………

¥66,918
1,229
12,579949(1,578)3¥80,101iii) Reconciliation of retirement benefit obligation and pension plan assets with net defined benefit liabilities
and assets presented on the consolidated balance sheet(Millions of yen)a. Funded plan retirement benefit obligation…………………………………
b. Pension plan assets……………………………….…………….…………..
c. (a + b)…………………………………………………………….………...
d. Unfunded plan retirement benefit obligation……………………………....
e. Net amount of liabilities and assets presented
on the consolidated balance sheet……………………………….……….
f. Net defined benefit liabilities…………………………………………..…..
g. Net defined benefit assets………………………………………………….
h. Net amount of liabilities and assets presented
on the consolidated balance sheet………………………………….…….

¥66,035(80,101)(14,066)
9,284(4,782)
10,914(15,696)¥(4,782)iv) Breakdown of retirement benefit gains and losses(Millions of yen)

Service cost…………………………………………..…………………….…
Interest cost………………………………..……….…………….……….…..
Expected return on pension plan assets………………………….…….……...
Amortization of actuarial differences………………………………………....
Amortization of prior service cost………………………………………..…...
Others…………………………………………………………………………
Retirement benefit expenses related to defined benefit plan……………........

¥3,696520(1,229)
582
(341)
(3)
¥3,225v) Remeasurements of defined benefit plan
Remeasurements of defined benefit plan (before tax effects) comprised the following:(Millions of yen)

Actuarial differences….…………………………..….….…………………..
Prior service cost………...……………………..…...……..………………...
Total…………………………………………………………………………

¥22,318
6,588¥28,906vi) Accumulated remeasurements of defined benefit plan
Accumulated remeasurements of defined benefit plan (before tax effects) comprised the following:(Millions of yen)

Unrecognized actuarial differences….………………………………..….…
Unrecognized prior service cost……...……………………………………..
Total……….……………………………………………………………….....…

59¥22,740
6,547¥29,288

Fukoku Mutual Life Insurance Company

vii) Breakdown of pension plan assets
The breakdown of asset categories as a percentage of total pension plan assets were as follows:
Domestic stocks…………………………………..……...…………………
Life insurance general account…………..……….………………...……....
Domestic bonds………………………….……………………..…………...
Foreign stocks………………………………………………..……..……....
Assets under joint management……………………………….………..…..
Foreign bonds…………………………………………..……………………
Total……….……………………………………………..…………….....…

49.4%
26.6%
9.1%
8.9%
3.1%
3.0%
100.0%

Within the total of pension assets, 42.0% of this amount is accounted for by the retirement benefit trust
established in relation to the retirement lump-sum payments plan for sales employees.
viii) Method for setting the expected long-term rate of return
To set the expected long-term rate of return on pension plan assets, the Company takes into account the present
and future allocation of pension plan assets, and the present and expected future long-term rate of return on avariety of assets that makes up the pension assets.
ix) Underlying actuarial assumptions
Main underlying actuarial assumptions as of March 31, 2024, were as follows:
Discount rate………………………………..………….…………….…..…
Expected long-term rate of return on pension plan assets
Defined Benefit Plan….…………………………………………………...
Retirement benefit trust………………………………..……..…………....

1.6%
3.0%
0.0%

(3) Defined Contribution Plan
The required contribution amount by the Company and its consolidated subsidiaries to the defined contribution planwas ¥358 million as of March 31, 2024.

60

Fukoku Mutual Life Insurance Company

III. Notes to the Consolidated Statements of Operations
1. The total amounts of revenues and expenses in connection with unconsolidated subsidiaries were ¥105 million and ¥1,281
million for the year ended March 31, 2024.

2. For the year ended March 31, 2024, in calculating the provision of reserve for outstanding claims, a provision of reservefor outstanding claims for ceded reinsurance of ¥0 million was deducted. In calculating the provision of policy reserves, areversal of policy reserve for ceded reinsurance of ¥7 million was added.

3. Items related to impairment losses for the year ended March 31, 2024 were as follows:(1) Asset grouping method
Real estate and similar used for the insurance business is treated as one asset group for the insurance business as awhole. For other assets such as real estate for rent and idle real estate, each property is treated as one asset group.
(2) Process leading to recognition of impairment losses
For certain assets such as real estate for rent, and idle real estate whose profitability declined significantly due to adecrease in rental income and a fall in land prices, the book value was reduced to the recoverable amount, and the
reduced amount was recorded as an impairment losses in extraordinary losses.
(3) Asset groups for which impairment losses were recognized and breakdown of impairment losses by fixed asset type.
(i) Real estate for rent and similar assets(Millions of yen)
Land…………………………….

¥56

Buildings……………………….

8

Total…………………………….

¥64(ii) Idle real estate and similar assets(Millions of yen)
Land…………………………….

¥107

Buildings………………………..

485

Total…………………………….

¥593(iii) Total (i + ii)(Millions of yen)
Land…………………………….

¥163

Buildings………………………..

494

Total…………………………….

¥657(4) Calculation method for recoverable amounts
Net selling prices are used to represent recoverable amounts. Appraisal value, or assessed value based on the publishedprice or roadside land price is used to represent net selling prices.

IV. Notes to the Consolidated Statements of Comprehensive Income
1. Other Comprehensive Income
The reclassification adjustments and tax effect amounts related to other comprehensive income for the year ended
March 31, 2024 were as follows:

61

Fukoku Mutual Life Insurance Company

i) Net unrealized gains (losses) on available-for-sale securities, net of tax(Millions of yen)Amount incurred during the fiscal year………………………….…………
Reclassification adjustments…………………………..……..……………..
Before tax adjustments…………………………………………………….
Tax effects……………………………………………………..…………..

¥390,203(10,982)379,221(106,075)

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

¥273,145ii) Foreign currency translation adjustments(Millions of yen)Amount incurred during the fiscal year…………………………….………

¥315

Reclassification adjustments…………………………..………..…………..

—

Before tax adjustments…………………………………………………….

315

Tax effects……………………………………………………..…………..

—

Foreign currency translation adjustments………………………………….

¥315iii) Remeasurements of defined benefit plans, net of tax(Millions of yen)Amount incurred during the fiscal year…….………………………………
Reclassification adjustments…………………………..………..…………..
Before tax adjustments…………………………………………………….
Tax effects……………………………………………………..…………..
Remeasurements of defined benefit plans, net of tax………….………….

¥28,664
241
28,906(8,093)
20,812

Total other comprehensive income………………………………………..

¥294,273

V. Notes to the Consolidated Statements of Cash Flows
1. Cash and cash equivalents as of March 31, 2024 consist of "Cash," "Deposits in transfer account," "Current deposits,""Ordinary deposits," "Notice deposits," "Time deposits maturing within 3 months of the date of acquisition," "Foreign
currency deposits maturing within three months of the date of acquisition," "Negotiable certificate of deposits maturing
within three months of the date of acquisition," "Call loans" and "Monetary claims bought maturing within three monthsof the date of acquisition."

2. Reconciliations of cash and cash equivalents in the consolidated statements of cash flows to the consolidated balance
sheet accounts as of March 31, 2024 were as follows:(Millions of yen)

Cash and deposits.......................……....................................................................

¥396,782

Call loans...........................................................…….............................................

128,000

Time deposits maturing over 3 months of the date of acquisition.........................

(17,000)

Foreign currency deposits maturing over 3 months of the date of acquisition…..

(1,640)Cash and cash equivalents.................................................................………….....

¥506,141

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Fukoku Mutual Life Insurance Company

(7) Disclosed Claims Based on Insurance Business Act(Millions of yen)

As of March 31, 2023

As of March 31, 2024

Claims against bankrupt and quasi-bankrupt obligors

140

133

Claims with collection risk

544

508

Delinquent loans past three months or more——

Restructured loans

561

518

Subtotal[Percentage of total]

1,246[0.12%]

1,160[0.11%]

Claims against normal obligors

1,035,561

1,025,086

Total

1,036,808

1,026,246

Notes: 1. Claims against bankrupt and quasi-bankrupt obligors are loans to borrowers who are subject to bankruptcy,
corporate reorganization or rehabilitation or other similar proceedings and other borrowers in serious
financial difficulties.
Notes: 2. Claims with collection risk are loans to obligors (other than claims against bankrupt and quasi-bankrupt
obligors) with deteriorated financial condition and results of operations from which it is unlikely that the
principal and interest on the loans will be recovered.
Notes: 3. Delinquent loans past three months or more are loans for which interest payments or repayments 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 claims against bankrupt and quasi-bankrupt obligors, claims
with collection risk.
Notes: 4. Restructured loans are loans for which certain concessions favorable to borrowers, such as interest
reduction or exemption, rescheduling of due date for repayments 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 claims against bankrupt and quasibankrupt obligors, claims with collection risk, and delinquent loans past three months or more.
Notes: 5. Claims against normal obligors are all other loans.

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Fukoku Mutual Life Insurance Company

(8) Status of Insurance Claims Paying Ability of the Company and Insurance Subsidiaries(Consolidated Solvency Margin Ratio)(Millions of yen)

As ofMarch 31, 2023

As ofMarch 31, 2024

1,923,471

2,381,877

Foundation funds and surplus

238,663

239,002

Reserve for price fluctuation

188,538

193,279

Contingency reserve

170,512

211,786

Catastrophe loss reserve——

General allowance for possible loan losses

404

330

(Net unrealized gains (losses) on securities (before tax) and deferredhedge gains (losses) (before tax)) × 90%

486,289

827,687

Net unrealized gains on real estate × 85%

155,499

165,661381

29,288

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

395,807398,926

Qualifying subordinated debt

241,935

267,260

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

Deductible items——

45,43948,655328,259

400,408

Total solvency margin(A)

Sum of unrecognized actuarial differences and unrecognized prior service cost

Others(B)

Total amount of risk √(√𝑅𝑅12 + 𝑅𝑅52 + 𝑅𝑅8 + 𝑅𝑅9)2 + (𝑅𝑅2 + 𝑅𝑅3 + 𝑅𝑅7)2 + 𝑅𝑅4 + 𝑅𝑅6
Insurance risk

R1

21,801

21,411

General insurance risk

R5

—

—

Catastrophe risk

R6

—

—

3rd sector insurance risk

R8

10,241

10,268Small amount and short-term insurance risk

R9

—

—

Assumed investment yield risk

R2

21,39820,369Minimum guarantee risk

R7

—

—

Investment risk

R3

298,225

370,309

Business risk

R4

7,033

8,447

1,171.9%

1,189.7%

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

Note: Above figures are calculated based on the provisions of Articles 86-2 and 88 of the Enforcement Regulation of the Insurance BusinessAct and the Financial Services Agency Notification No.23, 2011.

Reference: Consolidated Economic Solvency Ratio

Economic Solvency Ratio

As ofMarch 31, 2023

As ofMarch 31, 2024

245.2%

258.2%

Note: Economic solvency ratio (ESR) is an indicator of an insurance company’s soundness and indicates whether or not a company has
sufficient capital to cover its risks based on market-value assessment of its assets and liabilities. The Company calculates its ESR
according to European methodology.

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Fukoku Mutual Life Insurance Company

(9) Status of Insurance Claims Paying Ability of Insurance Subsidiaries(Solvency Margin Ratio)[Fukokushinrai Life Insurance Company](Millions of yen)

As ofMarch 31, 2023

As ofMarch 31, 2024

97,656

100,770

Foundation funds and surplus

71,96672,780Reserve for price fluctuation

11,34912,712

Contingency reserve

2,623

2,886

0

0

5,156

5,432

—

—

2,285

2,363

Qualifying subordinated debt——

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

Deductible items

—

—

4,274

4,594

18,271

20,214

Total solvency margin(A)

General allowance for possible loan losses(Net unrealized gains (losses) on securities (before tax) and deferredhedge gains (losses) (before tax)) × 90%
Net unrealized gains on real estate × 85%
Excess amount of policy reserve based on full-time Zillmer method

OthersTotal amount of risk √(𝑅𝑅1 + 𝑅𝑅8)2 + (𝑅𝑅2 + 𝑅𝑅3 + 𝑅𝑅7)2 + 𝑅𝑅4(B)Insurance risk

R1

400

392

3rd sector insurance risk

R8

149

152

Assumed investment yield risk

R2

324

332

Minimum guarantee risk

R7

—

—

Investment risk

R3

17,56919,467

Business risk

R4

368

406

1,068.9%997.0%

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

Note: Above figures are calculated based on the provisions of Articles 86 and 87 of the Enforcement Regulation of the Insurance BusinessAct and Ministry of Finance Notification No.50, 1996.

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Fukoku Mutual Life Insurance Company