November 26, 2010

Financial Results for the Six Months Ended September 30, 2010
Fukoku Mutual Life Insurance Company (President: Yoshiteru Yoneyama) announces financial results
for the six months ended September 30, 2010.

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

P.1

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

P.3

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

P.10

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

P.11

5. Non-consolidated Statement of Changes in Net Assets…………………

P.12

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

P.22

7. Disclosed Claim Based on Categories of Obligors…………………

P.23

8. Risk-monitored Loans…………………

P.23

9. Solvency Margin Ratio…………………

P.24

10. Status of Separate Account…………………

P.25

Attached: Supplementary Materials for the Six Months Ended September 30, 2009

1. Business Highlights(1) Policies in Force, New Policies and Surrendered and Lapsed Policies(i) Policies in Force
As of September 30, 2010
Number of policies(Thousands)

Individual insurance
Individual annuities
Subtotal

As of March 31, 2010

AmountChanges(%, Pre-FYE)(100 millionsof yen)Number of policies

AmountChanges(%, Pre-FYE)(Thousands)

277,806

97.4

2,965

96.6

2,960

99.8

751

100.4

29,776

99.9

748

3,712

100.0

307,582

97.7

3,714

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

285,159

94.3

101.0

29,80299.8

99.9

314,96294.8

Group insurance−−

159,708

100.1

−

−

159,611104.1

Group annuities−−

19,543

97.6−−

20,016100.2

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

(ii) New Policies
Total
Six months ended
September 30, 2009

Number of policies(Thousands)

AmountChanges(%, YoY)

Net increase by
conversion

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

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

Individual insurance

214

138.3

5,965

72.1

7,678

94.1

(1,713)−

Individual annuities

19

66.9

615

62.9

629

63.6

(13)

−

(1,726)

−

234

127.1

6,581

71.2

8,307

90.8

Group insurance

−

−

209

50.5

209

50.5

Group annuities

−

−

0

304.2

0

304.2

Subtotal

Total
Six months ended
September 30, 2010

Number of policies(Thousands)

AmountChanges(%, YoY)

Net increase by
conversion

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

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

Individual insurance

204

95.4

5,837

97.9

7,316

95.3

(1,478)−

Individual annuities

18

97.6

622

101.1

638

101.4

(15)

−

(1,493)

−

223

95.6

6,460

98.2

7,954

95.7

Group insurance

−

−

362

173.4

362

173.4

Group annuities

−

−

0

35.2

0

35.2

Subtotal

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

(iii) Surrendered and Lapsed Policies (Individual Insurance and Individual Annuities)
Six months ended
September 30, 2009

Six months ended
September 30, 2010
Changes(%, YoY)

Changes(%, YoY)

Amount of surrender and lapse(100 millions of yen)

9,722

93.4

9,066

93.3

Surrender and lapse ratio (%)

2.93(0.08)

2.88(0.05)

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

-1-

Fukoku Mutual Life Insurance Company

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

As ofMarch 31, 2010

As of
September 30, 2010
Changes(%, Pre-FYE)

Changes(%, YoY)

Individual insurance

2,887

98.3

2,937

Individual annuities

1,260

100.7

1,252

101.5

Total

4,148

99.0

4,189

97.6

1,013

100.6

1,007

102.1

Medical coverage and living benefits

96.1(ii) New Policies(100 millions of yen except percentage)

Six months ended
September 30, 2009

Six months ended
September 30, 2010

Changes(%, YoY)

Changes(%, YoY)

Individual insurance

98

99.3

92

94.2

Individual annuities

30

69.7

28

93.8

Total

128

90.2

121

94.1

44

119.8

39

88.7

Medical coverage and living benefits

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

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

Six months ended
September 30, 2009

Six months ended
September 30, 2010

Changes(%, YoY)

Premium and other income

Changes(%, YoY)

3,104

87.3

3,495

112.6

793

118.0

790

99.6

2,872

95.1

3,527

122.8

Investment expenses

413

164.2

260

63.1

Ordinary profits

127

38.3

400

314.3

Investment income
Claims and other payments(4) Total Assets(100 millions of yen except percentage)

As ofMarch 31, 2010

As of
September 30, 2010
Changes(%, Pre-FYE)

Total assets

55,977-2-

99.7

Changes(%, YoY)

56,131

101.8

Fukoku Mutual Life Insurance Company

2. Investment Results of General Account Assets(1) Asset Composition(Millions of yen)
As ofMarch 31, 2010

As of
September 30, 2010
Cash, deposits, call loans
Monetary claims bought
Money held in trust
Securities
Domestic bonds
Domestic stocks
Foreign securities
Foreign bonds
Foreign stocks and other securities
Other securities
Loans
Policy loans
Ordinary loans
Real estate
Deferred tax assets
OthersAllowance for possible loan losses
Total
Foreign currency denominated assets

AmountPercentage
155,734
2.8
1,495
0.0
32,9290.6
3,748,523
67.9
2,524,892
45.8
399,734
7.2
775,095
14.0
607,650
11.0
167,445
3.0
48,8010.9
1,179,609
21.4
73,595
1.3
1,106,013
20.0
274,866
5.0
63,3191.1
62,8071.1(2,558)(0.0)
5,516,728
100.0
625,923
11.3

AmountPercentage
160,004
2.9
1,752
0.0
32,9020.6
3,710,831
67.2
2,565,977
46.5
473,218
8.6
622,07311.3
446,9138.1
175,160
3.2
49,5620.9
1,220,945
22.1
74,186
1.3
1,146,758
20.8
275,8315.0
62,1701.1
57,4211.0(2,430)(0.0)
5,519,429
100.0
458,695
8.3

Six months ended
September 30, 2009

Six months ended
September 30, 2010

(2) Changes (Increase/Decrease) in Assets(Millions of yen)Cash, deposits, call loans
Monetary claims bought
Money held in trust
Securities
Domestic bonds
Domestic stocks
Foreign securities(58,639)(169)(80)
125,744
94,51526,476
5,244
9,353(4,108)(492)(7,717)(1,496)(6,221)
18,164(29,504)
2,170(2,637)47,330(3,664)Foreign bonds
Foreign stocks and other securities
Other securities
Loans
Policy loans
Ordinary loans
Real estate
Deferred tax assets
OthersAllowance for possible loan losses
Total
Foreign currency denominated assets-3-(4,269)(256)
26
37,691(41,085)(73,483)
153,022
160,737(7,714)(761)(41,336)(591)(40,745)
(964)
1,149
5,386
(128)
(2,701)
167,228

Fukoku Mutual Life Insurance Company

(3) Investment Income(Millions of yen)Six months ended
September 30, 2009

Six months ended
September 30, 2010

54,836
180
34,635
12,40754,772544
34,853
12,152

7,491
121
−
−
15,125

7,089
132
163
−
16,148

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

7,715
7,093
315
−
−

9,884
6,261
1
−
7,833

−
70

−
115

Total

70,031

79,033

Interest, dividends and other income
Interest from deposits
Interest and dividends from securities
Interest from loans
Income from real estate for rent
Other interest and dividends
Gains from money held in trust, net
Gains from trading securities, net
Gains on sales of securities(4) Investment Expenses(Millions of yen)Six months ended
September 30, 2009

Six months ended
September 30, 2010

977
92

704
−

477
16,485

3,114
5,552

Losses on sales of domestic bonds
Losses on sales of domestic stocks

89
5,407

21
2,829

Losses on sales of foreign securities
Losses on valuation of securities

10,989
1,877
−
1,725
152

2,701
4,077
−
3,874
202

−
12,226
972
2,742
−

−
−
2,080
−
−

2,595
2,871
41,3192,393
2,400
20,324

Interest expenses
Losses from money held in trust, net
Losses from trading securities, net
Losses on sales of securities

Losses on valuation of domestic bonds
Losses on valuation of domestic stocks
Losses on valuation of foreign securities
Losses on redemption of securities
Losses from derivative instruments, net
Foreign exchange losses, net
Provision for allowance for possible loan losses
Write-off of loans
Depreciation of real estate for rent and other assets
Other investment expenses
Total(5) Net Investment Income(Millions of yen)

Net investment income-4-

Six months ended
September 30, 2009

Six months ended
September 30, 2010

28,71258,709

Fukoku Mutual Life Insurance Company

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

As of September 30, 2010
Net valuation gains/losses
Carrying value on
included in the statements
balance sheetsof operations
236,829(3,917)

Trading securities

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

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

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

As of March 31, 2010

As of September 30, 2010
Gains/losses

Fair value

23

430,883

433,717

2,834

5,212

2,377

25,273−382,130

383,997

1,866

4,110

2,243

2,141

2,165

23

48,75349,720

967

1,101

134

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

642,986

685,745

42,75842,910151

639,749

657,551

17,801

18,125324

Fair value424,302451,718

27,41527,439Domestic bonds

378,254403,528

25,273Foreign bonds

46,04848,190

Monetary claims bought−

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

Policy-reserve-matching bonds

Gains/losses

Book value

Book value

Losses

Gains

Losses

1,393

865

(527)

−

527

1,393

933

(459)

−

459

2,352,280

2,430,177

77,897

141,976

64,0792,440,492

2,516,197

75,704

121,21745,512

Domestic bonds

1,428,292

1,503,651

75,35975,3622

1,530,802

1,544,097

13,294

21,898

8,603

Domestic stocks

352,619

365,250

12,631

51,777

39,145362,224438,734

76,50991,174

14,665
19,367

Investments in subsidiaries and affiliates
Available-for-sale securities

Foreign securities

531,697522,253(9,443)

13,57623,020504,887

492,109(12,777)

6,589

Foreign bonds

353,199356,701

3,501

10,8207,319

323,137

318,842(4,295)

3,895

8,191

Foreign stocks and other securities

178,497

165,552(12,945)

2,756

15,701

181,749

173,267(8,481)

2,693

11,175

Other securities

39,67039,020

(650)

1,260

1,910

42,577

41,256(1,321)

1,554

2,876

Money held in trust

−

−

−

−

−

−

−

−

−

−

Monetary claims bought

−

−

−

−

−

−

−

−

−

−

Negotiable certificate of deposits

−

−

−

−

−

−

−

−

−

−

Others

−

−

−

−

−

−

−

−

−

−

3,420,962

3,568,506

147,544

212,326

64,7823,512,519

3,608,400

95,881

144,555

48,674

Domestic bonds

2,449,532

2,592,924

143,392

143,546153

2,552,683

2,585,645

32,962

44,134

11,171

Domestic stocks

352,619

365,250

12,631

51,777

39,145362,224438,734

76,50991,174

14,665

Foreign securities

579,139

571,310(7,829)15,742

23,571

555,033

542,763(12,269)

7,691

19,960Foreign bonds

399,248404,891

5,643

12,986

7,343

371,891

368,562(3,328)

4,997

8,325

Foreign stocks and other securities

179,890

166,418(13,472)

2,756

16,228183,142

174,200(8,941)

2,693

11,634

Total

Other securities

39,67039,020

(650)

1,260

1,910

42,577

41,256(1,321)

1,554

2,876

Money held in trust

−

−

−

−

−

−

−

−

−

−

Monetary claims bought

−

−

−

−

−

−

−

−

−

−

Negotiable certificate of deposits

−

−

−

−

−

−

−

−

−

−

Others

−

−

−

−

−

−

−

−

−

−

Note: The table above includes assets, such as negotiable certificate of deposits, which are considered appropriate to deem as securities under the Financial Instruments and Exchange Law.

* Book value of securities without fair value are as follows:
As of
September 30, 2010

(Millions of yen)
As ofMarch 31, 2010

Held-to-maturity debt securities−−

Unlisted foreign bonds−−

Others−−−−Investments in subsidiaries and affiliates

26,132

26,132Available-for-sale securities

Policy-reserve-matching bonds

18,631

17,157

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

8,351

8,351

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

500

500

Unlisted foreign bonds
Others
Total

-5-

−

−

9,780

8,306

44,76343,290

Fukoku Mutual Life Insurance Company

(8) Fair Value Information on Money Held in Trust(Millions of yen)
As of March 31, 2010

As of September 30, 2010
Carrying
value onbalancesheetsMoney held in trust

32,929Gains/losses
Fair value

32,929Gains−

Losses−Carrying
value onbalancesheets−32,902

Gains/losses
Fair value

32,902

Gains−

Losses−−* Money held in trust for trading purpose(Millions of yen)
As of March 31, 2010

As of September 30, 2010
Net valuation gains/losses
included in the statementsof operations

Carrying value onbalance sheets
Money held in trust
for trading purpose

31,929Net valuation gains/losses
included in the statementsof operations

Carrying value onbalance sheets

31,902(108)

0* Money held in trust classified as held-to-maturity, policy-reserve-matching and available-for-sale(Millions of yen)
As of March 31, 2010

As of September 30, 2010
Book value Fair value

Gains/losses
Gains

LossesBook value Fair value

Gains/losses
Gains

LossesMoney held in trust
for held-to-maturity

−

−

−

−

−

−

−

−

−

−

Money held in trust
for policy-reserve-matching

−

−

−

−

−

−

−

−

−

−

Money held in trust
for available-for-sale

−

−

−

−

−

−

−

−

−

−

-6-

Fukoku Mutual Life Insurance Company

(reference) Fair Value Information on Derivative Instruments (General Account)(i) Gains and Losses on Derivatives
As of September 30, 2010

(millions of yen)Interestrelated

Currencyrelated

744

174

Hedge accounting applied

Stockrelated−

Bondrelated

Others

Total

−

−

919

−

(365)

106

(2,104)−(2,363)

744

(190)

106

(2,104)−(1,443)As of March 31, 2010

Interestrelated

Currencyrelated

Stockrelated

Hedge accounting applied

826(4,832)Hedge accounting not applied
Total

Hedge accounting not applied
Total

−

Bondrelated

Others

Total

−

−

(4,006)−(1,901)

(93)

350

−

(1,644)826(6,734)

(93)

350

−

(5,650)Note: Gains and losses from applying fair value hedge accounting (currency related, losses of ¥952 million as of March 31, 2009 and gains of ¥3,539 milli
as of September 30, 2009) included in gains and losses with hedge accounting applied, and gains and losses with hedge accounting not applied arereported in the statements of operations.

(ii) Interest-related Transactions(millions of yen)
As of March 31, 2010

As of September 30, 2010
Notional amount/contract valueOver
1 year

Fair
value

Gains
(losses)

Notional amount/contract value

Fair
value

Over
1 yearGains(losses)Over-the-counter transactions
Interest rate swap contracts
Receipt fixed, payment floating
Payment fixed, receipt floating

43,12233,077

2,500

−

759
(14)

Total

759

62,30940,180

857

(14)

2,500

−

(30)

744

857
(30)
826

* Interest rate swap contracts by contractual maturity dates(millions of yen)
As of March 31, 2010

As of September 30, 2010

Notional amount(receipts fixed, payments floating)

1 year or
shorterOver
1 year to
3 years

10,04430,0701 year or
shorterOver
1 year to
3 years

3,007

22,12927,070Over
3 yearsOver
3 years
13,110

Average fixed rate (receipt)

1.28%

1.48%

2.17%

1.14%

1.40%

1.70%

Average floating rate (payment)

0.47%

0.62%

0.89%

0.55%

0.59%

0.79%

Notional amount(receipts floating, payments fixed )

2,500

−

−

2,500

−

−

Average floating rate (receipt)

0.65%

−

−

0.67%

−

−

Average fixed rate (payment)

1.84%

−

−

1.84%

−

−

-7-

Fukoku Mutual Life Insurance Company

(iii) Currency-related Transactions(millions of yen)
As of March 31, 2010
Notional amount/
Gains
Fair
contract valueOver(losses)value
1 yearAs of September 30, 2010
Notional amount/
Fair
Gains
contract value
Over
value
(losses)
1 yearOver-the-counter transactions
Currency forward contracts
Sold
US dollar
Euro
Canadian dollar
Australian dollar
British Pound
BoughtCurrency Options
Sold
Calls
[
Euro
[
US dollar[
Puts[
Bought
Calls
[
Puts
[
Euro
[
US dollar[

313,695
221,553
54,504
17,281
11,9378,419−− 313,653− 219,137− 56,189− 17,037− 12,667
8,621
−
−
−

23,642
182 ]
23,642
182 ]
−
−]
−
−]

−

−
−]
48,300455 ]
32,000346 ]
16,300
109 ]

−

−
−

Currency swap contracts
Australian dollar

129

42
2,416
(1,685)
244
(730)
(202)
−

53

[

−
129

53

[

−
−

−

[

−
−

−

[

−

−

[

− 229,606− 146,495− 66,203−−− 16,907−−−−

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

−

33

(75)

−
−]
40,365375 ]
18,055211 ]
22,310
164

−
−

−
−

4,000
4,000

−
169

(286)

[

−
135

(210)

[

−

−
−

223,264
141,925
65,329−16,008−−

Total(6,342)(4,569)
(874)
−
(898)
−
−

211

(38)

131

9

79

(47)

−

−

−

−

53

(322)

39

(171)

13

(151)

(31)
(31)

(31)
(31)

−
−
−

−
−
−
−

−
−

(190)

(6,734)

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

(iv) Stock-related Transactions(millions of yen)
As of March 31, 2010
Notional amount/contract value
Gains
Fair value(losses)Over
1 yearAs of September 30, 2010
Notional amount/contract value
Gains
Fair value(losses)Over
1 yearExchange-traded transactions
Yen stock index futures
Sold
Bought4,780−

Stock index options
Sold
Calls
[
Puts
[
Bought
Calls
[
Puts
[

−
−

−
− ]
−
− ]

−

−
− ]
9,000
155 ]

−

4,680
−

100
−

−

−

[

−
−

−

[

−

−

[

−
161

Total

5

[

−
−

−
−

−
− ]
−
− ]

−

−
− ]
9,500
93 ]

−

−
−

−
−

−

−

−

−

−

−

0

(93)

−

−

106

(93)

As of September 30, 2010
Notional amount/contract value
Gains
Fair value(losses)Over
1 year(millions of yen)
As of March 31, 2010
Notional amount/contract value
Gains
Fair value(losses)Over
1 yearNote: Figures in [ ] are option premiums which are included in balance sheets.

(v) Bond-related Transactions

Exchange-traded transactions
Yen bond futures
Sold
Bought148,486−− 150,591
−
−

Total

(2,104)−(2,104)-8-

90,193−−−89,843
−

350
−
350

Fukoku Mutual Life Insurance Company

(reference) Fair Value of Real Estate ( Land and Leaseholds)(millions of yen)
As of September 30, 2010
Carrying value on
the balance sheets
162,266

Fair value
243,866

As of March 31, 2010
Gains(losses)

Carrying value on
the balance sheets

81,599162,335

Fair value
247,781

Gains(losses)
85,445

Notes: 1. As of September 30, 2010, fair value is based on the appraisal value by the real-estate appraiser, the appraisal value for property tax
and the road rate as of January 1, 2010.
2. As of March 31, 2010, fair value is based on the appraisal value by the real-estate appraiser, the appraisal value for property tax as ofJanuary 1, 2010 and the road rate as of January 1, 2009.

-9-

Fukoku Mutual Life Insurance Company

3. Non-consolidated Balance Sheets(Millions of yen)
As of September 30, 2010

As of March 31, 2010

AmountAmountAssets:Cash and deposits

49,932

69,110Call loans

105,900

91,000

Monetary claims bought

1,495

1,752

Money held in trust

32,92932,902

Securities

3,828,577

3,800,984[1,797,489][1,887,071][Local government bonds][144,471][124,642][Corporate bonds][615,768][588,041][Stocks][426,009][505,012][Foreign securities][795,580][646,118]

1,179,609

1,220,945[Government bonds]

Loans
Policy loans

73,59574,186

Ordinary loans

1,106,013

1,146,758

Tangible fixed assets

278,240

279,476

Intangible fixed assets

7,578

7,454

Reinsurance receivables

15

279

Other assets

52,69749,460

Deferred tax assets

63,31962,170Allowance for possible loan losses(2,558)(2,430)5,597,738

5,613,104

5,195,636

5,225,501

Total assets
Liabilities:
Policy reserves
Reserve for outstanding claims
Policy reserve
Reserve for dividends to policyholders
Reinsurance payables
Subordinated bonds
Other liabilities

21,76925,342

5,110,542

5,145,399

63,32454,75988

117

34,20937,40649,64541,921

11,3101,291

Asset retirement obligations

2,816

Other liabilities

35,518−40,630Reserve for employees' retirement benefits

50,006

49,776

Reserve for price fluctuation of securities

27,443

26,451

Deferred tax liabilities for revaluation reserve for land

19,976

19,983

5,377,005

5,401,158

Corporate income tax payable

Total liabilities
Net assets:
Foundation funds

40,00040,000

Accumulated foundation funds redeemed

46,00046,000Reserve for revaluation
Surplus

112

112

83,00876,229Legal reserve for future losses

2,249

2,187

Other surplus

80,75874,042

Reserve for redemption of foundation funds

20,00015,000Reserve for dividend allowances

3,895

3,895

Reserve for advanced depreciation of real estate for tax purpose

296

303

Other reserves

767

767

Unappropriated surplus

55,79954,075

Total foundation funds and surplus

169,120

162,341

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

49,69048,291

484

538

Deferred valuation gains (losses) under hedge accounting
Revaluation reserve for land, net of tax

1,436

773

Total valuation and translation adjustments

51,61149,604

Total net assets
Total liabilities and net assets- 10 -

220,732

211,946

5,597,738

5,613,104

Fukoku Mutual Life Insurance Company

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

Six months ended

September 30, 2009
AmountSeptember 30, 2010
AmountOrdinary revenues:
Premium and other income

310,477

349,537[Premium income][310,459][349,508]

Investment income[Interest, dividends and other income][Gains from money held in trust, net]
[Gains on sales of securities][Gains from derivative instruments, net]
[Gains from separate accounts, net]
Other ordinary revenues[Reversal of reserve for outstanding claims][Reversal of policy reserve]
Total ordinary revenues
Ordinary expenditures:
Claims and other payments

79,31379,033[54,836][54,772]

[−]

[163]

[15,125][16,148][−][7,833][9,281][−]

11,49544,201[4,241][3,572][−][34,856]

401,286

472,771

287,252

352,757[Claims][111,491][115,410][Annuities][42,385][44,494][Benefits][73,483][98,608][Surrenders][45,928][83,323][Other payments][13,812][10,774]

5,060

65

Provision for policy reserve and others

4,980

−

79

65

Investment expenses

41,31926,053[Interest expenses]

[977]

[704]

[Losses from money held in trust, net]

[92]

[−]

[Losses from trading securities, net]

[477]

[3,114]

Provision for policy reserve
Interest on accumulated dividends to policyholders[Losses on sales of securities][16,485][5,552][Losses on valuation of securities][1,877][4,077][Losses from derivative instruments, net]

[12,226][−][−][5,728]Operating expenses[Losses from separate accounts, net]

43,31642,954

Other ordinary expenditures

11,595

10,888

Total ordinary expenditures

388,544432,719

Ordinary profits

12,74240,052277

0Extraordinary gains:
Gains on disposal of fixed assets
Reversal of allowance for possible loan losses
Total extraordinary gains
Extraordinary losses:
Losses on disposal of fixed assets

−

40

277

41

29

28

Impairment losses

184

239

Provision for reserve for price fluctuation of securities

917

992

−

966

Total extraordinary losses

1,131

2,227

Surplus before income taxes

11,88837,866

2,621

11,946

Losses on adjustment for changes of accounting standard for asset retirement obligations

Income taxes:
Current
Deferred
Total income taxes
Net surplus for the period- 11 -(1,958)(1,919)662

10,027

11,22527,839

Fukoku Mutual Life Insurance Company

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

For the six months ended For the six months ended
September 30, 2009
September 30, 2010
Foundation funds and surplus
Foundation funds
Balance at the end of previous fiscal year

40,00040,00015,000(15,000)−
40,000−−−40,00031,00046,00015,00015,00046,000−−46,000

112

112

−
112

−
112

1,987

2,187

200
200
2,187

62
62
2,249

20,00015,00010,000(15,000)(5,000)15,000

5,000
−
5,000
20,000

3,895

3,895

−
3,895

−
3,895

311

303

(7)
(7)
303

(7)
(7)
296

767

767

−
767

−
767

56,66054,075(17,856)
(200)
(716)
11,225(10,000)7(43)(17,583)
39,076(19,505)(62)(892)
27,839(5,000)
7
(662)
1,724
55,799Changes in the current period
Financing of additional foundation funds
Redemption of foundation funds
Total changes in the current period
Balance at the end of current period
Accumulated foundation funds redeemed
Balance at the end of previous fiscal year
Changes in the current period
Additions to accumulated foundation funds redeemed
Total changes in the current period
Balance at the end of current period
Reserve for revaluation
Balance at the end of previous fiscal year
Changes in the current period
Total changes in the current period
Balance at the end of current period
Surplus
Legal reserve for future losses
Balance at the end of previous fiscal year
Changes in the current period
Additions to legal reserve for future losses
Total changes in the current period
Balance at the end of current period
Other surplus
Reserve for redemption of foundation funds
Balance at the end of previous fiscal year
Changes in the current period
Additions to reserve for redemption of foundation funds
Reversal of reserve for redemption of foundation funds
Total changes in the current period
Balance at the end of current period
Reserve for dividend allowances
Balance at the end of previous fiscal year
Changes in the current period
Total changes in the current period
Balance at the end of current period
Reserve for advanced depreciation of real estate for tax purpose
Balance at the end of previous fiscal year
Changes in the current period
Reversal of reserve for advanced depreciation of real estate for tax purpose
Total changes in the current period
Balance at the end of current period
Other reserves
Balance at the end of previous fiscal year
Changes in the current period
Total changes in the current period
Balance at the end of current period
Unappropriated surplus
Balance at the end of previous fiscal year
Changes in the current period
Additions to reserve for dividends to policyholders
Additions to legal reserve for future losses
Payment of interest on foundation funds
Net surplus for the current period
Additions to reserve for redemption of foundation funds
Reversal of reserve for advanced depreciation of real estate for tax purpose
Reversal of revaluation reserve for land
Total changes in the current period
Balance at the end of current period- 12 -

Fukoku Mutual Life Insurance Company

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

For the six months ended For the six months ended
September 30, 2009
September 30, 2010
Total surplus
Balance at the end of previous fiscal year

83,621

76,229(17,856)(716)
11,225(15,000)(43)(22,391)
61,230(19,505)(892)
27,839
−
(662)
6,778
83,008

154,733

162,341

15,000(17,856)
15,000(716)
11,225(15,000)(15,000)(43)(7,391)
147,342−(19,505)−(892)
27,839
−
−
(662)
6,778
169,120(35,474)

48,291

55,34855,34819,873

1,398
1,398
49,690

479

538

98
98
577

(53)
(53)
484

814

773

46
46
861

662
662
1,436

(34,180)

49,60455,49355,493
21,3122,006
2,006
51,611

120,553

211,946

15,000(17,856)
15,000(716)
11,225(15,000)(15,000)(43)
55,493
48,102
168,655−(19,505)−(892)
27,839
−
−
(662)
2,006
8,785
220,732

Changes in the current period
Additions to reserve for dividends to policyholders
Payment of interest on foundation funds
Net surplus for the current period
Reversal of reserve for redemption of foundation funds
Reversal of revaluation reserve for land
Total changes in the current period
Balance at the end of current period
Total foundation funds and surplus
Balance at the end of previous fiscal year
Changes in the current period
Financing of additional foundation funds
Additions to reserve for dividends to policyholders
Additions to accumulated foundation funds redeemed
Payment of interest on foundation funds
Net surplus for the current period
Redemption of foundation funds
Reversal of reserve for redemption of foundation funds
Reversal of revaluation reserve for land
Total changes in the current period
Balance at the end of current period
Valuation and translation adjustments
Net unrealized gains (losses) on available-for-sale securities, net of tax
Balance at the end of previous fiscal year
Changes in the current period
Net changes, excluding foundation funds and surplus
Total changes in the current period
Balance at the end of current period
Deferred valuation gains (losses) under hedge accounting
Balance at the end of previous fiscal year
Changes in the current period
Net changes, excluding foundation funds and surplus
Total changes in the current period
Balance at the end of current period
Revaluation reserve for land, net of tax
Balance at the end of previous fiscal year
Changes in the current period
Net changes, excluding foundation funds and surplus
Total changes in the current period
Balance at the end of current period
Total valuation and translation adjustments
Balance at the end of previous fiscal year
Changes in the current period
Net changes, excluding foundation funds and surplus
Total changes in the current period
Balance at the end of current period
Total net assets
Balance at the end of previous fiscal year
Changes in the current period
Financing of additional foundation funds
Additions to reserve for dividends to policyholders
Additions to accumulated foundation funds redeemed
Payment of interest on foundation funds
Net surplus for the current period
Redemption of foundation funds
Reversal of reserve for redemption of foundation funds
Reversal of revaluation reserve for land
Net changes, excluding foundation funds and surplus
Total changes in the current period
Balance at the end of current period- 13 -

Fukoku Mutual Life Insurance Company

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

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

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

ii)

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

iii)

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

iv)

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

v)

Available-for-sale securities with fair market value are stated at fair market value based on
the market prices at the balance sheet date. Costs of their sales are determined by themoving 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.
Available-for-sale securities whose fair market values are deemed extremely difficult toobtain are stated at cost, cost being determined by the moving average method, except for
public and corporate bonds including foreign bonds, of which the difference between
acquisition cost and face value is considered to be an adjustment of interest. Such bonds arestated at amortized cost under the straight-line method, cost being determined by the moving
average method.

(2) Valuation Methods of Derivative Instruments
Derivative instruments are stated at fair market value.
(3) Revaluation of Land
The Company revalued the land for business purposes based on the Law for Revaluation of Land
(Law No.34 promulgated on March 31, 1998). The difference between fair value and book value- 14 -

Fukoku Mutual Life Insurance Company

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

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

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

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

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

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

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

ii)

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

iii)

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

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

Fukoku Mutual Life Insurance Company

which is independent of business-related divisions. Subsequently, the allowance for possible loan
losses are provided based on the results of these assessments.
For the credits of legally bankrupt borrowers and substantially bankrupt borrowers, the amounts
remaining after deductions of collateral value or the amounts collectible through the execution ofguarantees is written-off directly from the borrower’s balance as the estimated uncollectible amounts.
The amount written-off as of September 30, 2010 was ¥8,174 million.
(7) Reserve for Employees’ Retirement Benefits
The Company adopts accounting standards for employees' retirement benefits (Business Accounting
Council dated June 16, 1998) and accounts for the reserve for employees’ retirement benefits basedon the projected benefit obligation and plan assets at the balance sheet date.
(8) Reserve for Price Fluctuation of Securities
Reserve for price fluctuation of securities is calculated in accordance with Article 115 of the Insurance
Business Law.
(9) Lease Transactions as a Lessee
Finance lease transactions that do not transfer ownership to the lessee whose commencement day
was on or before March 31, 2008 continued to be accounted for in a manner similar to accounting
treatment for ordinary rental transactions.
(10) Lease Transactions as a Lessor
For the finance lease transactions where the Company is a lessor, the lease fee is recorded in“interest, dividends and other income” at the time of receiving lease fee. The corresponding cost of thelease assets is recorded in “investment expenses”, which is calculated by deducting an amountequivalent to the interest allocated over the lease term from the lease fee received.
(11) Accounting for Hedge Activities
Hedge accounting is based on “Accounting Standards for Financial Instruments” (ASBJ Statement
No.10 issued by the Accounting Standards Board of Japan on August 11, 2006).
For the foreign currency forward contracts against the exchange rate fluctuations in the value of
foreign currency-denominated bonds classified as available-for-sale securities, which qualify for hedge
accounting because of high correlation and effectiveness between the hedging instruments and thehedged items, valuation gains and losses on the foreign currency forward contracts are recorded in
the statement of operations.
For the interest rate swaps against the interest rate fluctuations regarding loans, which qualify forhedge accounting because of high correlation and effectiveness between the hedging instruments andthe hedged items, valuation gains and losses on the interest rate swaps are deferred until the maturityof the hedged transactions.
Deposits denominated in foreign currencies for which forward foreign exchange contracts areused to hedge the foreign currency fluctuations are translated at the contract rates if the forward
contracts qualify for specific hedge accounting. In this case, exchange differences between theexchange rate on the trade date and the forward contract rate are allocated to each fiscal year fromthe date contracted to the date settled.
For judging the effectiveness of hedge used, ratio analysis of comparing the fluctuations in the fairvalue or cash flows of hedged items and hedging instruments is mostly applied.
(12) Accounting for Consumption Taxes
The Company accounts for consumption taxes by the tax-exclusion method. The consumption taxes
on certain assets, which are not deductible from consumption taxes withheld and that are stipulated to
be deferred under the Tax Law, are deferred as other assets and amortized equally over five years.

- 16 -

Fukoku Mutual Life Insurance Company

Consumption taxes other than deferred consumption taxes are recognized as an expense whenincurred.
(13) Policy Reserve
Policy reserve is based on Article 116 of the Insurance Business Law, and the premium reserve at thebalance sheet date is calculated by the following method:
In regard to the policies subject to the standard policy reserve, the method as prescribed by theCommissioner of Financial Services Agency (Ministry of Finance Ordinance No. 48, 1996) is applied.
In regard to the policies not subject to the standard policy reserve, the net level premium method
is applied.
(14) Software
The software for internal use is amortized based on straight-line method over the estimated useful
lives.
(15) Deferred Assets
Discount on bonds is amortized equally over the period for which interest on bonds is fixed. This
amount is deducted from bonds.
(16) Policy-reserve-matching Bonds
Of the bonds corresponding to the sub-groups which are set by insurance types and investment
policies, the bonds that are held to match the duration of liabilities are classified as policy-reservematching bonds in accordance with “Temporary Treatment of Accounting and Auditing Concerning
Policy-reserve-matching Bonds in Insurance Industry”. (Industry Audit Committee Report No.21 issued
by the Japanese Institute of Certified Public Accountants on November 16, 2000).
2. Change in Accounting Policy
Effective for the six months ended September 30, 2010, the Company adopted “Accounting Standard
for Asset Retirement obligations“ (ASBJ Statement No.18 issued by the Accounting Standards Boardof Japan on March 31, 2008) and “Guidance on Accounting Standard for Asset Retirement obligations(ASBJ Guidance No.21 issued by the Accounting Standards Board of Japan on March 31, 2008). As aresult, tangible fixed asset increased by ¥1,770 million and the amount of asset retirement obligations
recorded in balance sheet was ¥2,816 million. Ordinary profits decreased by ¥78 million and surplus
before income taxes decreased by ¥1,045 million.
3. Financial Instruments
The carrying amounts, fair values and their related differences of major financial assets and liabilities
are as follows:

Call loans ..............................................................
Monetary claims bought:
Claims treated as loans ....................................
Total monetary claims bought ...........................
Money held in trust:
Trading securities..............................................
Total money held in trust...................................
Securities:
Trading securities..............................................

- 17 -

As of September 30, 2010
Carrying
Fair value
Difference
amount(Millions of yen)
105,900
105,900
―
1,495
1,495

1,535
1,535

39
39

31,92931,92931,92931,929――204,900

204,900―

Fukoku Mutual Life Insurance Company

Held-to-maturity debt securities........................
Policy-reserve-matching bonds ........................
Investments in subsidiaries and affiliates .........
Available-for-sale securities ..............................
Total securities ..................................................
Loans:
Policy loans.......................................................
Ordinary loans ..................................................
Total loans.........................................................
Derivative instruments:
Hedge accounting not applied ..........................
Hedge accounting applied ................................
Total derivative instruments ..............................

424,302642,986
1,393
2,430,177
3,703,759

451,718
685,745865
2,430,177
3,773,407

27,41542,758(527 )―
69,64773,595
1,106,013
1,179,609

73,595
1,142,876
1,216,472(0 )36,86336,863(2,363 )919(1,443 )(2,363 )919(1,443 )―――(1) Call loans:
The fair values of call loans are based on their carrying values since fair values approximate
carrying values due to their short maturities.
(2) Securities including deposits and monetary claims bought which are treated as securities basedon “Accounting Standards for Financial Instruments” (ASBJ Statement No.10) and securities
managed as trust assets in money held in trust:
The fair values of marketable securities are measured at the quoted market price at the balance
sheet date. The fair values of other securities without the quoted market price are based on theprices reasonably calculated such as the prices offered by the information vendors or
counterparty financial institutions. Investments in subsidiaries and affiliates, unlisted equity
securities and investments in partnerships whereby partnership assets consist of unlisted equity
securities whose fair values are deemed extremely difficult to obtain, are excluded from above
securities. The carrying amounts of investments in subsidiaries and affiliates, unlisted equity
securities and investments in partnerships as of September 30, 2010 were ¥26,132 million,¥8,851 million and ¥9,780 million, respectively.
(3) Loans and monetary claims bought treated as loans:
The fair values of policy loans are deemed to approximate carrying values, considering estimatedrepayment period and interest rate conditions since their repayment deadline have not been set
up due to the characteristics that the loan is limited to the amount of cash surrender values.
Therefore, the carrying values are used as the fair values of policy loans.
The fair values of floating interest rate loans among the ordinary loans and monetary claimsbought treated as loans approximate the carrying values because the market interest rates arereflected in future cash flows in a short period. Therefore, the fair values of floating interest rateloans and monetary claims bought treated as loans are based on their carrying values. The fairvalues of fixed interest rate loans are measured by discounting the future cash flows to thepresent values. The fair values of loans receivable from legally bankrupt borrowers, substantiallybankrupt borrowers and borrowers who are not currently bankrupt but have a high possibility ofbankruptcy and monetary claims bought treated as loans are computed by deducting the amountof the allowance for doubtful accounts from the carrying values before direct write-offs.
(4) Derivative instruments:i)

The fair values of the futures and options traded at the exchange are measured at thesettlement price of the exchange.
ii) The fair values of options and swaps traded over the counter are based on the quoted prices
offered by counterparty financial institutions.
iii) The fair values of foreign currency forward contracts are determined based on the spot
exchange rate and forward contract rate.
4. Investment and Rental Property
The carrying amount and the fair value of investment and rental properties as of September 30, 2010
were ¥226,799 million and ¥294,797 million, respectively. The fair value is mainly based on the value- 18 -

Fukoku Mutual Life Insurance Company

calculated by the Company in accordance with real estate appraisal standards which includes someadjustments using the reference prices.
The amount corresponding to asset retirement obligations included in the carrying amount ofinvestment and rental properties was ¥1,473 million.
5. Loans Receivable
The amounts of credits to bankrupt borrowers, delinquent loans and restructured loans, which were
included in loans, were ¥324 million, ¥1,198 million and ¥1,806 million, respectively and their total
amounts were ¥3,329 million as of September 30, 2010. There was no balance of delinquent loans
past 3 months or more as of September 30, 2010.
The direct write-offs related to loans decreased credits to bankrupt borrowers by ¥8,097 million
and delinquent loans by ¥77 million as of September 30, 2010.
Credits to bankrupt borrowers represent loans, excluding the balances already written-off, whichmeet the conditions prescribed in Article 96 Paragraph 1 Item 3 and 4 of the Enforcement Regulationsof the Corporate Tax Law. Moreover, accruing interest of these loans is not recorded as income after
determining that principal of or interest on these loans is unlikely to be collected due to the significant
delay in repayment of principal or interest payment or for some other reasons.
Delinquent loans are credits whose accruing interest is not recorded as income due to the same
reasons as described above, and exclude credits to bankrupt borrowers and loans for which interest
payments have been suspended and rescheduled to assist and support the borrowers in the
restructuring of their business.
Delinquent loans past 3 months or more are loans for which interest payment or repayment ofprincipal are delinquent for 3 months or more from the due date under the terms of the related loan
agreements, excluding those loans classified as credits to bankrupt borrowers and delinquent loans.
Restructured loans are loans for which certain concessions favorable to borrowers, such as
interest reduction or exemptions, rescheduling of due date of principal or interest payment, waiver ofclaim or other terms, have been negotiated for the purpose of assisting and supporting the borrowers
in the restructuring of their business. This category excludes loans classified as credits to bankrupt
borrowers, delinquent loans and delinquent loans past 3 months or more.
6. Accumulated Depreciation of Tangible Fixed Assets
Accumulated depreciation of tangible fixed assets totaled to ¥133,314 million as of September 30,
2010.
7. Separate Accounts
Total assets in separate accounts provided for in Article 118 of the Insurance Business Law were¥82,441 million as of September 30, 2010. The amount of separate account liabilities was the same as
separate account assets.
8. Reserve for Dividends to Policyholders
Changes in reserve for dividends to policyholders for the six months ended September 30, 2010 wereas follows:(Millions of yen)
Balance at the end of previous fiscal year.........
Transfer from surplus in previous fiscal year .....
Dividends paid in the current period ..................
Increase in interest ............................................
Balance at the end of the current period ...........

- 19 -¥ 54,759
19,505(11,006)65¥ 63,324

Fukoku Mutual Life Insurance Company

9. Stocks of Subsidiaries
The amount of stocks of subsidiaries the Company held as of September 30, 2010 was ¥27,525
million.
10. Pledged Assets and Secured Debts
Assets pledged as collateral as of September 30, 2010 were ¥20,588 million of securities and ¥86
million of money held in trust. Secured debts as of September 30, 2010 were ¥4,581 million.
11. Policy Reserves for the Reinsurance Contracts
Reserve for outstanding claims for the reinsurance contracts provided in accordance with Article 71
Paragraph 1 of the Enforcement Regulation of the Insurance Business Law (hereinafter called“reserve for outstanding claims for ceded reinsurance”) was ¥32 million as of September 30, 2010.
Policy reserve for the reinsurance contracts provided in accordance with Article 71 Paragraph 1 of
the Enforcement Regulation of the Insurance Business Law (hereinafter called “policy reserve forceded reinsurance”) was ¥32 million as of September 30, 2010.
12. Commitment LineAs of September 30, 2010, there were unused commitment line agreements under which theCompany is the lender of ¥4,571 million.
13. Subordinated Bonds
Repayments of subordinated bonds are subordinated to other obligations.
14. Contribution to Policyholders Protection Corporation
The future contribution to the Life Insurance Policyholders Protection Corporation of Japan under
Article 259 of the Insurance Business Law was estimated at ¥10,770 million as of September 30, 2010.
The contribution was charged as operating expenses in the year in which it was paid.

III. Notes to Non-consolidated Statement of Operations
1. Gains on Sales of Securities
Major items of gains on sales of securities for the six months ended September 30, 2010 were as
follows:(Millions of yen)Domestic bonds ..............................................................
Domestic stocks and others............................................
Foreign securities ...........................................................

¥ 9,8846,261
1

2. Losses on Sales of Securities
Major items of losses on sales of securities for the six months ended September 30, 2010 were as
follows:(Millions of yen)Domestic bonds ..............................................................
Domestic stocks and others............................................
Foreign securities ...........................................................

- 20 -

¥ 21
2,829
2,701

Fukoku Mutual Life Insurance Company

3. Losses on Valuation of Securities
Major items of losses on valuation of securities for the six months ended September 30, 2010 were as
follows:(Millions of yen)Domestic stocks and others............................................
Foreign securities ...........................................................

¥ 3,874
202

4. Policy Reserves for the Reinsurance Contracts
For the six months ended September 30, 2010, provision for reserve for outstanding claims for ceded
reinsurance considered in calculation of reversal of reserve for outstanding claims was ¥0 million andprovision for policy reserve for ceded reinsurance considered in calculation of reversal of policy
reserve was ¥2 million.

5. Interest, Dividends and Other Income
Breakdown of interest, dividends and other income for the six months ended September 30, 2010 was
as follows:(Millions of yen)Interest on deposits ....................................
Interest and dividends on securities ...........
Interest on loans .........................................
Income from real estate for rent..................
Other interest and dividends.......................
Total ............................................................

¥

544
34,853
12,1527,089
132¥54,772- 21 -

Fukoku Mutual Life Insurance Company

6. Breakdown of Ordinary Profits (Fundamental Profit)
Six months ended
September 30, 2009

(Millions of Yen)
Six months ended
September 30, 2010

A

32,94733,434

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

15,125−−
15,125−−−33,417174
1,680
16,485
1,877
12,226972−(18,292)
14,655
−
−
−
−
1,913
−
288
1,625
−
−
−
(1,913)
12,742

23,99413−
16,148
7,833−−
17,319
−
5,607
5,552
4,077
−
2,080
−
6,675
40,110
−
−
−
−
57
−
57
−
−
−
−
(57)
40,052Fundamental profit

Notes: 1. The following amounts in respect of gains / losses from money held in trust have been excluded from capital gains / losses andincluded in fundamental profit due to their income nature (being interest and dividend income): ¥81 million in respect of the six
months ended September 30, 2009 and ¥150 million in respect of the six months ended September 30, 2010.
2. The following amounts in respect of gains / losses from trading securities have been excluded from capital gains / losses andincluded in fundamental profit due to the their income nature (being interest and dividend income): ¥1,203 million in respect of
the aix months ended September 30, 2009 and ¥2,493 million in respect of the six months ended September 30, 2010.

Breakdown of Fundamental Profit

Fundamental profit
Loading profit
Mortality and morbidity profit
Negative spread- 22 -

Six months ended
September 30, 2009(100 millions of yen)Six months ended
September 30, 2010

329
38
385
(94)

334
24
368
(58)

Fukoku Mutual Life Insurance Company

7. Disclosed Claims Based on Categories of Obligors
As ofSeptember 30, 2010
362
1,168
1,806
3,337
[0.28%]
1,181,798
1,185,136

Claims against bankrupt and quasi-bankrupt obligors
Claims with collection risk
Claims for special attention
Subtotal[Percentage of total]
Claims against normal obligors
Total(Millions of yen)
As ofMarch 31, 2010
819
1,660
166
2,646
[0.22%]
1,224,154
1,226,801

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

8. Risk-monitored Loans
As of
September 30, 2010
324
1,198
−
1,806
3,329
[0.28%]

Credits to bankrupt borrowers
Delinquent loans
Delinquent loans past three months or more
Restructured loans
Total[Percentage of total loans](Millions of yen)
As ofMarch 31, 2010
352
2,119
−
166
2,638
[0.22%]

Notes: 1. For the credits of legally bankrupt borrowers and substantially bankrupt borrowers, the amounts remaining after deductions of collateralvalue or the amounts collectible through the execution of guarantees is written-off directly from the borrower’s balance as the estimateduncollectible amounts. The amounts written-off related to credits to bankrupt borrowers were ¥8,097 million as of September 30, 2009,and ¥8,097 million as of March 31, 2010. The amounts written-off related to delinquent loans were ¥77 million as of September 30, 2010and ¥938 million as of March 31, 2010.
2. Credits to bankrupt borrowers represent loans which are subject to bankruptcy, corporate reorganisation or rehabilitation or other similar,
including but not limited to foreign, proceedings. Accruing interest of these loans is not recorded as income after determining thatprincipal of or interest on these loans is unlikely to be collected due to the significant delay in repayment of principal or interest payment
or for some other reasons.
3. Delinquent loans are credits whose accruing interest is not recorded as income due to the same reasons as described in note 2 above,and exclude credits to bankrupt borrowers and loans for which interest payments have been suspended and rescheduled to assist andsupport the borrowers in the restructuring of their business.
4. Delinquent loans past three months or more are loans for which interest payment or repayment of principal are delinquent for threemonths or more from the due date under the terms of the related loan agreements, excluding those loans classified as credits to bankrupt
borrowers and delinquent loans.
5. Restructured loans are loans for which certain concessions favorable to borrowers, such as interest reduction or exemptions,
rescheduling of due date of principal or interest payment, waiver of claim or other terms, have been negotiated for the purpose of
assisting and supporting theborrowers in the restructuring of their business. This category excludes loans classified as credits tobankrupt borrowers, delinquent loans and delinquent loans past three months or more.

- 23 -

Fukoku Mutual Life Insurance Company

9. Solvency Margin Ratio(Millions of yen)
As of
September 30, 2010
Total solvency margin

(A)

As of
March 31, 2010

650,502628,750

Foundation funds and surplus

158,570

141,571

Reserve for price fluctuation of securities

27,443

26,451

Contingency reserve

145,716

145,658

Allowance for possible loan losses

1,945

2,000

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

70,107

68,134

Net unrealized gains on real estate x 85%

83,37988,973

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

100,269

97,609Qualifying subordinated debt

34,20937,406

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

Others38,86130,944

105,744

111,510

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

(B)

Insurance risk

R1

28,67729,032

3rd sector insurance risk

R8

9,438

9,433

Assumed investment yield risk R2

18,673

18,793

Investment risk

R377,074

82,868Business risk

R4

2,677

2,802

Minimum guarantee risk

R7

12

12

1230.3%1127.6%

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

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

- 24 -

Fukoku Mutual Life Insurance Company

10. Status of Separate Account(1) Separate Account Assets by Products
As of September 30, 2010

(Millions of yen)
As of March 31, 2010

AmountAmountIndividual variable insurance−−

Individual variable annuities

556

640

Group annuities

81,88494,567

Total

82,441

95,207

As of September 30, 2010

(Millions of yen)
As of March 31, 2010(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

NumberIndividual annuities

Amount190

Number623

Amount196

667(ii) Breakdown of Separate Account Assets for Individual Variable Annuities
As of September 30, 2010
AmountPercentage(Millions of yen)
As of March 31, 2010
AmountPercentage

Cash, deposits, call loans

98

17.6

105

16.4

Securities

458

82.4

534

83.6

Domestic bonds

−

−

−

−

Domestic stocks

−

−

−

−

Foreign securities

−

−

−

−

Foreign bonds

−

−

−

−

Foreign stocks and other securities

−

−

−

−

458

82.4

534

83.6

Loans

−

−

−

−

Others−−−−Allowance for possible loan losses

−

−

−

−

556

100.0

640

100.0

Other securities

Total- 25 -

Fukoku Mutual Life Insurance Company

(iii) Investment Income and Expenses of Separate Account for Individual Variable Annuities(Millions of yen)Six months ended
September 30, 2010

Six months ended
September 30, 2009
AmountAmountInterest, dividends and other income

01

Gains on sales of securities−−

Gains on valuation of securities

113

29

Gains on redemption of securities−−

Gains from derivative instruments−−

Foreign exchange gains, net−−

Other investment income−−

Losses on sales of securities

1

2

Losses on valuation of securities

42

68

Losses on redemption of securities−−

Losses from derivative instruments−−

Foreign exchange losses, net−−

Other investment expenses−−

Net investment income

69

(40)

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

As of September 30, 2010
Net valuation
gains/losses
Carrying value on
included in thebalance sheets
statementsof operations

Trading securities

458

(39)

Carrying value onbalance sheets534

Net valuation
gains/losses
included in thestatementsof operations

101

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

- 26 -

Fukoku Mutual Life Insurance Company

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

Trading securities

As of September 30, 2010
Net valuation gains/losses
Carrying value on
included in the statementbalance sheetof operations
316,883(8,552)As of March 31, 2010
Net valuation gains/losses
Carrying value on
included in the statementbalance sheetof operations
201,372
18,639Note: The table above includes money held in trust for trading purpose.

Fair Value Information on Securities (with fair value, other than trading securities)(Millions of yen)
As of September 30, 2010

Book value

As of March 31, 2010

Gains/losses

Fair value

Book value

Fair value

Gains/losses

Losses

Gains

Gains

Losses424,302451,718

27,41527,43923

430,883

433,717

2,834

5,212

2,377

Domestic bonds

378,254403,528

25,27325,273−382,130

383,997

1,866

4,110

2,243

Foreign bonds

46,04848,190

2,141

2,165

23

48,75349,720

967

1,101

134

Monetary claims bought

−

−

−

−

−

−

−

−

−

−

Negotiable certificate of deposits

−

−

−

−

−

−

−

−

−

−

Others

−

−

−

−

−

−

−

−

−

−

642,986

685,745

42,75842,910151

639,749

657,551

17,801

18,125324

Held-to-maturity debt securities

Policy-reserve-matching bonds

1,393

865

(527)

−

527

1,393

933

(459)

−

459

2,352,280

2,430,177

77,897

141,976

64,0792,440,492

2,516,197

75,704

121,21745,512

Domestic bonds

1,428,292

1,503,651

75,35975,3622

1,530,802

1,544,097

13,294

21,898

8,603

Domestic stocks

352,619

365,250

12,631

51,777

39,145362,224438,734

76,50991,174

14,665
19,367

Investments in subsidiaries and affiliates
Available-for-sale securities

Foreign securities

531,697522,253(9,443)

13,57623,020504,887

492,109(12,777)

6,589

Foreign bonds

353,199356,701

3,501

10,8207,319

323,137

318,842(4,295)

3,895

8,191

Foreign stocks and other securities

178,497

165,552(12,945)

2,756

15,701

181,749

173,267(8,481)

2,693

11,17539,67039,020

(650)

1,260

1,910

42,577

41,256(1,321)

1,554

2,876

Money held in trust

−

−

−

−

−

−

−

−

−

−

Monetary claims bought

−

−

−

−

−

−

−

−

−

−

Negotiable certificate of deposits

−

−

−

−

−

−

−

−

−

−

Others

−

−

−

−

−

−

−

−

−

−

3,420,962

3,568,506

147,544

212,326

64,7823,512,519

3,608,400

95,881

144,555

48,674

Domestic bonds

2,449,532

2,592,924

143,392

143,546153

2,552,683

2,585,645

32,962

44,134

11,171

Domestic stocks

352,619

365,250

12,631

51,777

39,145362,224438,734

76,50991,174

14,665

Foreign securities

579,139

571,310(7,829)15,742

23,571

555,033

542,763(12,269)

7,691

19,960Foreign bonds

399,248404,891

5,643

12,986

7,343

371,891

368,562(3,328)

4,997

8,325

Foreign stocks and other securities

179,890

166,418(13,472)

2,756

16,228183,142

174,200(8,941)

2,693

11,634

Other securities

Total

39,67039,020

(650)

1,260

1,910

42,577

41,256(1,321)

1,554

2,876

Money held in trust

−

−

−

−

−

−

−

−

−

−

Monetary claims bought

−

−

−

−

−

−

−

−

−

−

Negotiable certificate of deposits

−

−

−

−

−

−

−

−

−

−

Others

−

−

−

−

−

−

−

−

−

−

Other securities

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

・ Held-to-maturity Debt Securities(Millions of yen)
As of March 31, 2010

As of September 30, 2010
Carrying
value on thebalancesheet

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

Fair value Differences

Carrying
value on the Fair valuebalance sheet

Differences

420,875

448,315

27,439133,237

138,449

5,212

Domestic bonds

378,254403,528

25,27392,70996,8204,110Foreign bonds

42,62144,7872,165

40,527

41,629

1,101

Money claims bought

−

−

−

−

−

−

Negotiable certificate of deposits

−

−

−

−

−

−

Others

−

−

−

−

−

−

3,427

3,403

(23)

297,646

295,268(2,377)

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

−

−

−

289,420

287,177(2,243)

3,427

3,403

(23)

8,225

8,091

(134)

Money claims bought

−

−

−

−

−

−

Negotiable certificate of deposits

−

−

−

−

−

−

Others

−

−

−

−

−

−

Domestic bonds
Foreign bonds- 27 -

Fukoku Mutual Life Insurance Company

・ Policy-reserve-matching Bonds(Millions of yen)
As of March 31, 2010

As of September 30, 2010
Carrying
value on thebalancesheet

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

Fair value Differences

Carrying
value on the Fair valuebalance sheet

Differences

630,489

673,399

42,910613,468

631,594

18,125

630,489

673,399

42,910613,468

631,594

18,125

Foreign bonds

−

−

−

−

−

−

Others

−

−

−

−

−

−

12,497

12,345(151)

26,28025,956(324)

Domestic bonds

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

12,497

12,345(151)

26,28025,956(324)

Foreign bonds

−

−

−

−

−

−

Others

−

−

−

−

−

−

Domestic bonds

・ Available-for-sale Securities(Millions of yen)
As of September 30, 2010
Book value
Securities whose carrying value on the balance
1,847,074
sheet exceeds the book value

As of March 31, 2010

Carrying
value on the
DifferencesbalancesheetBook value

Carrying
value on the Differencesbalance sheet

1,989,051

141,976

1,249,403

1,370,621

121,217

Domestic bonds

1,402,003

1,477,365

75,362744,823

766,721

21,898Domestic stocks

127,389

179,167

51,777

230,605

321,780

91,174Foreign securities

301,186

314,763

13,576

256,161

262,750

6,589

Foreign bonds

248,570259,390

10,820172,238

176,134

3,895

Foreign stocks

52,61655,372

2,756

83,922

86,615

2,693

16,49517,755

1,260

17,81319,368

1,554

Money held in trust

−

−

−

−

−

−

Money claims bought

−

−

−

−

−

−

Negotiable certificate of deposits

−

−

−

−

−

−

Others

−

−

−

−

−

−
(45,512)

Other securities

Securities whose carrying value on the balance
sheet does not exceed the book value505,205

441,125(64,079)

1,191,088

1,145,576

Domestic bonds

26,28826,286(2)785,979

777,375(8,603)

Domestic stocks

225,229

186,083(39,145)

131,619

116,953(14,665)

Foreign securities

230,511

207,490(23,020)

248,725

229,358(19,367)

Foreign bonds

104,629

97,310(7,319)150,899

142,707(8,191)

Foreign stocks

125,881

110,180(15,701)

97,82686,651(11,175)

23,175

21,265(1,910)24,764

21,888(2,876)

Money held in trust

−

−

−

−

−

−

Money claims bought

−

−

−

−

−

−

Negotiable certificate of deposits

−

−

−

−

−

−

Others

−

−

−

−

−

−

Other securities* Book value of securities whose market value are deemed extremely difficult to obtain are as follows:(Millions of yen)
As of September 30, 2010−

Held-to-maturity bonds

As of March 31, 2010−

Unlisted foreign bonds−−

Others−−−−Investments in subsidiaries and affiliates

26,132

26,132Available-for-sale securities

Policy-reserve-matching bonds

18,631

17,157

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

8,351

8,351

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

500

500

−

−

9,780

8,306

44,76343,290Unlisted foreign bonds
OthersTotal- 28 -

Fukoku Mutual Life Insurance Company

(reference) Fair Value Information on Derivative Instruments (Total of General Account and Separate Account)(i) Gains and Losses on Derivatives
As of September 30, 2010
Hedge accounting applied
Hedge accounting not applied
Total
As of March 31, 2010
Hedge accounting applied
Hedge accounting not applied
Total(Millions of yen)Interestrelated
744
−
744

Currencyrelated
174
(365)
(190)

StockrelatedInterestrelated
826
−
826

Currencyrelated(4,832)(1,901)(6,734)

Stockrelated

Bondrelated

−
106
106

−
(2,104)(2,104)
Bondrelated

−
(93)
(93)

Others

−
350
350

Total
−
−
−

Others919(2,363)(1,443)
Total

−
−
−

(4,006)(1,644)(5,650)Note: Gains and losses from applying fair value hedge accounting (currency-related, gains of ¥174 million as of September 30, 2010 and losses of¥4,832 million as of March 31, 2010) included in gains and losses with hedge accounting applied, and gains and losses with hedge accounting
not applied are reported in the statements of operations.

(ii) Hedge Accounting not Applied・ Interest-related Transactions
No ending balance as of September 30, 2010 and March 31, 2010.

- 29 -

Fukoku Mutual Life Insurance Company

・ Currency-related Transactions(Millions of yen)
As of March 31, 2010
Notional amount/
Fair
Gains
contract value
Over
value
(losses)
1 yearAs of September 30, 2010
Notional amount/
Fair
Gains
contract value
Over
value
(losses)
1 yearOver-the-counter transactions
Currency forward contracts
Sold
US dollar
Euro
Canadian dollar
British pound
Australian dollar
Singapore dollar
BoughtCurrency Options
Sold
Calls
[
Euro
[
US dollar[
Puts[
Bought
Calls
[
Puts
[
Euro
[
US dollar[

182,481
125,641
28,68817,281
8,419
2,450
0
−

− 182,613− 124,445− 29,922− 17,037
8,621
−
2,586
−
0
−
−
−

23,642
182 ]
23,642
182 ]
−
−]
−
−]

−

−
−]
48,300455 ]
32,000346 ]
16,300
109 ]

−

−
−

Currency swap contracts
Australian dollar

129

(132)
1,196
(1,234)
244
(202)
(135)
0
−

53

[

−
129

53

[

−
−

−

[

−
−

−

[

−

−

[

−
169

(286)

[

−
135

(210)

[

−
−
−

33

(75)

−
−

−
−

Total

[

76,897
39,83537,061
−
−
−
−
−

−
−
−
−
−
−
−
−

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

−

−
−]
40,365375 ]
18,055211 ]
22,310
164 ]

−

4,000
4,000

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

211

(38)

131

9

79

(47)

−

−

−

−

53

(322)

39

(171)

13

(151)

(31)
(31)

(31)
(31)

−
−
−

−
−
−
−
−

(365)

(1,901)

As of September 30, 2010
Notional amount/Gainscontract value
Fair valueOver(losses)
1 year(Millions of yen)
As of March 31, 2010
Notional amount/Gainscontract value
Fair valueOver(losses)
1 yearNotes: 1. Figures in [ ] are option premiums which are included in balance sheet.
2. Forward exchange rates are used for exchange rates as of the end of fiscal year.

・ Stock-related Transactions

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

4,780
−

−
−

−
−]
−
−]

−

−
−]
9,000
155 ]

4,680
−

100
−

−

−

[

−
−

−

[

−

−

[

−
−
161

Total

5

[

−
−

−
−

−
−]
−
−]

−

−
−]
9,500
93 ]

−
−

−
−

−

−

−

−

−

−

0

(93)

−
−
−

106

(93)

As of September 30, 2010
Notional amount/Gainscontract value
Fair valueOver(losses)
1 year(Millions of yen)
As of March 31, 2010
Notional amount/Gainscontract value
Fair valueOver(losses)
1 yearNote: Figures in [ ] are option premiums which are included in balance sheet.

・ Bond-related Transactions

Exchange-traded transactions
Yen bond futures
Sold
Bought148,486−− 150,591
−
−

Total

(2,104)−(2,104)- 30 -

90,193−−−89,843
−

350
−
350

Fukoku Mutual Life Insurance Company

(iii) Hedge Accounting Applied・ Interest-related Transactions(Millions of yen)

[As of September 30, 2010]
Method of
Hedging instruments
Hedged items
hedge accounting
Deferral hedge
Loans
Interest rate swap contracts
methodReceipt fixed, payment floating
Payment fixed, receipt floating
Total

Notional amount / contract valueOver 1 year
43,122
2,500

Fair value

33,077−759(14)

1 year or shorter
Over 1 year to 3 years
10,04430,070
1.28%
1.48%
0.47%
0.62%
2,500
−
0.65%
−
1.84%
−

Over 3 years
3,007
2.17%
0.89%
−
−
−

* Interest rate swap contracts by contractual maturity dates(Millions of yen)
Notional amount (receipts fixed, payments floating)
Average fixed rate (receipt)
Average floating rate (payment)
Notional amount (receipts floating, payments fixed)
Average floating rate (receipt)
Average fixed rate (payment)[As of March 31, 2010]
Method of
Hedging instruments
Hedged items
hedge accounting
Deferral hedge
Loans
Interest rate swap contracts
methodReceipt fixed, payment floating
Payment fixed, receipt floating
Total(Millions of yen)
Notional amount / contract valueOver 1 year
62,3092,500

Fair value

40,180−857(30)

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

(Millions of yen)Over 3 years
13,110
1.70%
0.79%
−
−
−

* Interest rate swap contracts by contractual maturity dates

Notional amount (receipts fixed, payments floating)
Average fixed rate (receipt)
Average floating rate (payment)
Notional amount (receipts floating, payments fixed)
Average floating rate (receipt)
Average fixed rate (payment)・ Currency-related Transactions[As of September 30, 2010]
Method of
Hedging instruments
hedge accounting
Fair value hedge
Currency forward contracts
methodSold
US dollar
Euro
Australian dollar
Bought(Millions of yen)
Hedged items
Foreigncurrencydenominatedbonds

Notional amount / contract valueOver 1 year
131,214
95,91125,816
9,486−

Fair Value

−
−
−
−
−

131,039
94,691
26,266
10,081−Total[As of March 31, 2010]
Method of
Hedging instruments
hedge accounting
Fair value hedge
Currency forward contracts
methodSold
US dollar
Euro
Australian dollar
Bought(Millions of yen)
Hedged items
Foreigncurrencydenominatedbonds

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

−
−
−
−
−

151,199
105,562
28,73016,907−

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

・ Stock-related Transactions
No ending balance as of September 30, 2010 and March 31, 2010.

・ Bond-related Transactions
No ending balance as of September 30, 2010 and March 31, 2010.

- 31 -

Fukoku Mutual Life Insurance Company