May 29, 2009

Financial Results for the Year Ended March 31, 2009

Fukoku Mutual Life Insurance Company (President: Tomofumi Akiyama) announces financial results
for the year ended March 31, 2009.

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

P.1

2. Policies in Force by Coverage Type as of March 31, 2009…………………

P.3

for the Year Ended March 31, 2009 …………………

P.4

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

P.16

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

P.17

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

P.27

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

P.28

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

P.30

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

P.31

10. Risk-monitored Loans…………………

P.32

11. Solvency Margin Ratio…………………

P.33

12. Status of Separate Account…………………

P.34

3. Investment Activities of General Account Assets

Attached: Supplementary Materials for the Year Ended March 31, 2009

Financial Summary for the Year Ended March 31, 2009
1. Business Highlights(1) Policies in Force, New Policies and Surrendered and Lapsed Policies.
(i) Policies in Force
As of March 31, 2008
Number of policies

As of March 31, 2009

AmountNumber of policies

Amount(Thousands)

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

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

Individual insurance

3,026

99.1

317,421

96.6

2,976

98.3

302,327

95.2

Individual annuities

717

103.6

29,388

101.8

741

103.3

29,864

101.6

3,744

100.0

346,809

97.0

3,717

99.3

332,191

95.8

SubtotalGroup insurance－－ 151,461

106.4

－

－ 153,365

101.3

Group annuities

－

－

100.7

－

－

98.7

20,235

19,975

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

(ii) New Policies
Total
Year ended
March 31, 2008

New business

Number of policies

AmountAmount

Net increase by
conversion
Amount(Thousands)

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

Individual insurance

371

95.0

21,136

85.8

20,092

88.4

1,044

55.2

Individual annuities

53

78.2

1,790

84.1

1,808

84.0

(17)

－

425

92.5

22,92785.7

21,900

88.0

1,026

54.9

Group insurance

－

－

635

70.3

635

70.3

Group annuities

－

－

88

15,719.4

88

15,719.4

Subtotal

Total
Year ended
March 31, 2009

New business

Number of policies

AmountAmount

Net increase by
conversion
Amount(Thousands)

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

325

87.6

16,221

76.7

16,259

80.9

(38)

－

Individual annuities

56

105.3

1,909

106.6

1,926

106.5

(17)

－

381

89.8

18,13079.1

18,186

83.0

(55)

－

Group insurance

－

－

1,063

167.4

1,063

167.4

Group annuities

－

－

0

0.9

0

0.9

Subtotal

Changes(%, YoY)

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

(iii) Surrendered and Lapsed Policies (Individual Insurance and Individual Annuities)
Year ended March 31, 2008

Year ended March 31, 2009

Changes(%, YoY)

Changes(%, YoY)

Amount of surrender and ｌapses(100 millions of yen)

20,861

96.4

20,328

97.4

Surrender and lapse ratio(%)

5.85(0.08)

5.86

0.01

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

-1-

Fukoku Mutual Life Insurance Company

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

As of March 31, 2008

As of March 31, 2009

Changes(%, YoY)

Changes(%, YoY)

Individual insurance

3,236

96.2

3,057

94.5

Individual annuities

1,194

104.8

1,233

103.2

Total

4,431

98.4

4,290

96.8

979

102.4

987

100.8

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

Year ended March 31, 2008

Year ended March 31, 2009

Changes(%, YoY)

Changes(%, YoY)

Individual insurance

231

92.8

194

83.9

Individual annuities

91

72.7

82

90.0

Total

323

86.0

276

85.6

87

91.8

74

85.6

Medical coverage and living benefits

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

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

Year ended March 31, 2008

Year ended March 31, 2009

Changes(%, YoY)

Changes(%, YoY)

Premium and other income

7,364

102.0

6,467

87.8

Investment income

1,462

99.2

1,667

114.0

Claims and other payments

6,019

115.8

5,965

99.1

Investment expenses

595

164.0

1,694

284.3

Ordinary profits

580

96.5

21

3.7

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

Year ended March 31, 2008

Year ended March 31, 2009

Changes(%, YoY)

Changes(%, YoY)

Unappropriated surplus

556

98.4

566

101.8

Reserve for dividends to policyholders

318

89.7

178

56.0

Net surplus

109

100.0

109

100.0

Unappropriated surplus carried forward

128

127.4

278

216.3

Note: Unappropriated surplus for the years ended March 31, 2008 and 2009 included reversal of voluntary surplus reserve of ¥8 millionand ¥7 million, respectively.

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

As of March 31, 2008

As of March 31, 2009

Changes(%, YoY)

Total assets

57,252-2-

97.2

Changes(%, YoY)

55,144

96.3

Fukoku Mutual Life Insurance Company

2. Policies in Force by Coverage Type as of March 31, 2009
(Thousands of number, 100 millions of yen)

Individual insurance Individual annuities

Group insurance

Total

NumberAmountNumberAmountNumberAmountNumberAmountIllness and accident

2,025

243,967－

1,204

19,006

153,335

21,031

398,507

Accident

1,570

40,442

290

806

2,731

7,241

4,591

48,490

－

－

－

－

0

7

0

7

951

58,359741

28,659

8

30

1,700

87,049Accident

1,492

87

－

－

1,168

4

2,661

91

Illness

1,486

86

－

－

－

－

1,486

86

Others

1,958

103

－

－

0

0

1,959

103

Injury coverage

1,540

－

4

－

2,171

－

3,716

－

Surgical coverage

3,325

－

－

－

－

－

3,325

－

Death coverage

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

Survival coverage

Worker's asset formation
insurance and annuities

Total

NumberAmountNumberAmountNumberAmount11,573

19,97519352

11,593

20,328(Thousands of number, millions of yen)(Thousands of number, millions of yen)Group disability
insurance

Medical careinsurance

Hospitalization coverage

NumberAmount417

129

Disability coverage

NumberAmount16

139

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

-3-

Fukoku Mutual Life Insurance Company

3. Investment Activities of General Account Assets for the Year
Ended March 31, 2009(1) Investment Activities for the Year Ended March 31, 2009(i) Investment Environment
For the year ended March 31, 2009, Japanese economy has declined fastand sharply over second half of the fiscal year as the turmoil of European and
U.S. financial market had impacted the worldwide economy. The condition offinancial and capital markets was absolutely strict, against the expansion of thesense of crisis for the financial system in Europe and U.S. and the concern overthe global economy.
As for the long-term interest rate, which once rose to more than 1.8% by
10-year government bond yield from May to June turned to downward trend
against the concern over Japanese economy. It once reached 1.1% level, andstayed at 1.3 % level at the end of March.
Stock price, which started from 12,000 yen level, once rose to 14,000 yen
level by the Nikkei Average, but it started to decline sharply in the end of
October and reached below 7,000 yen temporarily. Although, unstableconditions continued, the pessimistic view about the future faded down, stock
price recovered little, and stayed 8,109 yen at the end of March.
Yen, which depreciated against U.S. dollar and euro and reached 110 yen
level against U.S. dollar and 169 yen level against euro over the summer,
turned appreciating against other currencies rapidly from October, and once
went below 90 yen against U.S. dollar and 120 yen against euro. But then yen
depreciated against other currencies again, and reached 98 yen level against
U.S. dollar and 129 yen level against euro at the end of March 2009.
On the European and U.S. financial markets, both FRB and ECB kept themonetary policy to easing, and increased the amount of money supply against-4-

Fukoku Mutual Life Insurance Company

the glowing concerns in the financial environment. Under these conditions, longterm interest rate in U.S. which once rose to 4.2% level fell to the latter half of
2%level. German Bunds, the indicator of European long-term interest rate, also
declined from 4.6% level to around 3.0% level.

(2) Investment Policies
Fundamental policy of asset management of Fukoku Life is to achieve thehigh level of investment revenue to the future, in accordance with the principle
of prudent and profitable investments, taking into consideration of the liability
characteristic of life insurance products. Under this policy, we allocate our funds
based on medium-to-long term view of the market to construct a portfolio
capable of adequately responding to the ongoing developments and also tosecure the liquidity of the asset. To explain concretely, we diversify ourinvestment in foreign securities, equities and real estate within the permitted
range of risk to improve the revenue, although yen-denominated interest
bearing assets such as domestic bonds and loans are the cores of the portfolio.
Moreover, in the present state of affairs that the financial and capital markets
are extremely unstable, we chiefly secure the fund received from customers.
We limit our investments towards financial products, which lack liquidity or
include obscure risks, to maintain the quality of the portfolio. We also closely
monitor our assets on daily basis to reduce the investment risk, so that we areable to absorb the influence from the large volatility in the market.

(3) Investment Results
General account assets as of March 31, 2009 were ¥5,402.9 billion (down
3.7% from the previous fiscal year), a decrease of ¥207.5 billion from the end of
the previous fiscal year, by the decline of net unrealized gains on securities.

-5-

Fukoku Mutual Life Insurance Company

We focused our asset management activities on safety more thanprofitability from the beginning of FY2008, and when the turmoil of worldwide
financial markets became serious from October, we especially, wrestled with
reducing risks that related to investments. To explain concretely, we reduced
high risk assets, such as foreign securities and equities, and raised hedge ratio,
to strengthen the resistance for downward correction. On the other hand, we
diversify the fund managed by turnover of foreign securities and equities, mainly
to call loan and domestic bonds.
As a result, the balance of domestic bonds increased ¥24.1 billion, to¥2,468.8 billion (up 1.0% from the previous fiscal year).
The balance of equities decreased ¥183.0 billion, to ¥418.8 billion (down
30.4% from the previous fiscal year) by sale and decrease of net unrealized
gains following the large decline of market equity prices.
The balance of foreign securities decreased ¥182.8 billion, to ¥574.6 billion(down 24.1% from the previous fiscal year) mainly on foreign bonds.
Loans increased ¥6.8 billion, to ¥1,161.2 billion (up 0.6% from the previous
fiscal year), mainly by the increase of corporate loans.
Real estate increased ¥44.3 billion, to ¥246.2 billion, by replacing property
to improve the revenue.
The balance of securitized financial products decreased ¥1.8 billion, to ¥9.8
billion. As the ratio of securitized financial products to general account assets ismerely 0.18% (down 0.03% point from the previous fiscal year) and we have no
direct holding of any Subprime-related products, the risk for the management isvery limited.
Total investment income were ¥166.7 billion (up 14.0% from the previous
fiscal year). Interest and dividends income decreased ¥7.9 billion, to ¥115.0
billion (down 6.5% from the previous fiscal year), mostly by the interest offoreign bonds decreasing from the effect of yen’s appreciation. On the other-6-

Fukoku Mutual Life Insurance Company

hand, gains on sales of securities increased ¥30.4 billion, to ¥51.4 billion (up144.8% from the previous fiscal year) mainly of domestic bonds.
Total investment expenses were ¥144.3 billion (up 262.4% from theprevious fiscal year). As we sold foreign securities and equities that accounted
realized losses to cut a loss, losses on sales of securities increased ¥79.9
billion, to ¥95.4 billion (up 515.5% from the previous fiscal year). From the weakequity markets against turmoil in financial markets, we accounted ¥25.2 billion
yen (up 825.1% from the previous fiscal year) for losses on valuation of
securities mainly about equities.
As a result, the net of our investment activities which is the amount ofinvestment income minus expenses were ¥22.3 billion (down 79.0% from theprevious fiscal year).

-7-

Fukoku Mutual Life Insurance Company

(2) Asset Composition
As of March 31, 2008
AmountPercentage(Millions of yen)
As of March 31, 2009
Percentage

AmountCash, deposits, call loans

170,647

Monetary claims bought

2,533

0.0

2,055

0.0

Money held in trust

57,5271.0

33,0530.6

3,854,704

68.7

3,513,882

65.0

Domestic bonds

2,444,686

43.6

2,468,826

45.7

Domestic stocks

601,93710.7

418,889

7.8

Foreign securities

757,44513.5

574,604

10.6

Foreign bonds

575,979

10.3

403,391

7.5

Foreign stocks and other securities

181,466

3.2

171,212

3.2

50,6350.9

51,5621.0

1,231,963

22.0

1,238,205

22.9

Policy loans

77,5401.4

76,967

1.4

Ordinary loans

1,154,423

20.6

1,161,237

21.5

Real estate

201,896

3.6

246,220

4.6

Deferred tax assets

36,1060.6

110,422

2.0

Others

65,1801.2

63,547

1.2

Allowance for possible loan losses(10,052)(0.2)(11,290)(0.2)

5,610,506

100.0

5,402,946

100.0

686,88712.2

441,710

8.2

Securities

Other securities
Loans

Total
Foreign currency denominated assets

3.0 %

206,849

3.8 %(3) Changes (Increase/Decrease) in Assets(Millions of yen)
Year ended March 31, 2008
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

13,537(332)(44,659)(129,350)
13,567(199,183)

36,202(477)(24,474)(340,821)
24,140(183,047)

47,44840,064(182,841)(172,587)

7,384
8,817
(34,262)(10,253)927
6,241(1,746)(32,516)

(572)
6,813

491
36,106
5,678

44,32474,316(1,632)(1,238)(652)(153,441)
50,661

Total
Foreign currency denominated assets-8-

Year ended March 31, 2009

(207,559)(245,176)

Fukoku Mutual Life Insurance Company

(4) Investment Income(Millions of yen)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
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
Total

Year ended
March 31, 2008

Year ended
March 31, 2009

122,983584
83,91025,075
12,771
641

115,027662
75,05024,32414,300689－
1,827
21,031
2,722
11,566
6,743－－
51,491
29,312
17,176
5,002

－
－
－
373
146,216－－－
212
166,730(5) Investment Expenses(Millions of yen)Interest expenses
Losses from money held in trust, net
Losses from trading securities, net
Losses on sales of securities

Year ended
March 31, 2008

Year ended
March 31, 2009

2,466
6,251

1,974
3,912
3,343
95,471
2,427
43,67949,36325,268－15,511
4,720
7,182
3,608
2,731

Losses on sales of domestic bonds
Losses on sales of domestic stocks
Losses on sales of foreign securities
Losses on valuation of securities
Losses on valuation of domestic bonds
Losses on valuation of domestic stocks
Losses on valuation of foreign securities
Others
Losses on redemption of securities
Losses from derivative instruments, net
Foreign exchange losses, net
Provision for allowance for possible loan losses
Write-off of loans
Depreciation of real estate for rent and other assets
Other investment expenses
Total

－
1,949
782
－
－
961
443
745
－
4,753
5,965
39,830－19,006
3,761
2,500
－
110
2,348
1,243
－
4,226
6,450
144,349(6) Net Investment Income(Millions of yen)

Net investment income-9-Year ended
March 31, 2008

Year ended
March 31, 2009

106,385

22,381

Fukoku Mutual Life Insurance Company

(7) Other Information on Investments(i) Investment Yield by Asset Categories(%)
Year ended
March 31, 2008

Year ended
March 31, 2009

Cash, deposits, call loans

0.46(0.12)

Monetary claims bought
Money held in trust
Securities
Domestic bonds
Domestic stocks

1.27(8.43)
2.38
1.63
2.75

(0.34)(9.10)(0.26)
2.83(4.44)

Foreign securities
Foreign bonds

4.71
5.36

(5.80)(7.42)

2.50
1.95
1.76
2.19
1.95

(1.21)
1.90
1.72
3.06
0.41

4.74

(5.97)

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

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

(ii) Average Daily Balance(Millions of yen)
Year ended
March 31, 2008
Cash, deposits, call loans
Monetary claims bought
Money held in trust
Securities
Domestic bonds
Domestic stocks
Foreign securities
Foreign bonds
Foreign stocks and other securities
Loans
Ordinary loans
Real estate
Total
Overseas investments- 10 -

Year ended
March 31, 2009

133,888
4,338
74,1853,616,884
2,391,403
441,589
733,971

197,681
6,203
43,0073,648,942
2,388,027
441,768
752,721566,396
167,574
1,253,662
1,175,328
204,6465,449,697
755,409556,368
196,352
1,225,718
1,149,299
217,023
5,519,049
775,828

Fukoku Mutual Life Insurance Company

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

As of March 31, 2008
Net valuation gains/losses
Carrying value on
included in the statements
balance sheetsof operations
125,191(9,708)

Trading securities

As of March 31, 2009
Net valuation gains/losses
Carrying value on
included in the statements
balance sheetsof operations
89,449(6,204)

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

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

As of March 31, 2008

As of March 31, 2009

Gains/losses

Book value Fair value

Gains/losses

Book value Fair value

Gains

Losses

Gains

Losses170,358

172,310

1,951

4,749

2,798

152,157

156,525

4,368

5,177

809

Domestic bonds

121,656

126,386

4,730

4,732

2

113,032

117,328

4,296

4,332

36

Foreign bonds

48,70245,924(2,778)17

2,795

39,12539,197

71

845

773

Monetary claims bought

－

－

－

－

－

－

－

－

－

－

Negotiable certificate of deposits

－

－

－

－

－

－

－

－

－

－

Others

－

－

－

－

－

－

－

－

－

－

598,156

612,619

14,463

14,720256

628,570644,212

15,641

16,131

489

1,393

1,201

(191)

－

191

1,393

954

(438)

－

438

2,780,701 2,961,505

180,803

235,264

54,460 2,678,173 2,622,561(55,611)

77,291

132,903

Held-to-maturity debt securities

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

1,672,609 1,724,874
423,694565,598

52,26454,592

2,328 1,705,656 1,727,224

21,56828,906

7,338

141,903

161,588

19,685(17,813)45,49563,309403,395

385,582

Foreign securities

637,330

628,186(9,143)

17,82826,972519,208

466,188(53,020)

2,388

55,408Foreign bonds

467,778458,613(9,165)

8,518

17,683

328,436

306,869(21,567)

1,942

23,509Foreign stocks and other securities

169,551

169,573

21

9,309

9,288

190,772

159,319(31,452)445

31,89847,06642,847(4,219)

1,255

5,474

49,912

43,566(6,346)

501

6,847

Money held in trust

－

－

－

－

－

－

－

－

－

－

Monetary claims bought

－

－

－

－

－

－

－

－

－

－

Negotiable certificate of deposits

－

－

－

－

－

－

－

－

－

－

Others

－

－

－

－

－

－

－

－

－

－

3,550,609 3,747,636

197,026

254,734

57,707 3,460,294 3,424,254(36,039)

98,600134,640

Other securities

Total
Domestic bonds

71,45774,0452,587 2,447,258 2,488,764

41,50649,3707,863

Domestic stocks

423,694565,598

141,903

161,588

19,685403,395

385,582(17,813)45,49563,309Foreign securities

687,425

675,311(12,114)

17,84529,959559,727

506,341(53,386)

3,233

56,619Foreign bonds

516,481504,537(11,944)

8,535

20,479367,562

346,066(21,495)

2,787

24,283Foreign stocks and other securities

170,944

170,774

(170)

9,309

9,480

192,165

160,274(31,891)445

32,33647,06642,847(4,219)

1,255

5,474

49,912

43,566(6,346)

501

6,847

Money held in trust

－

－

－

－

－

－

－

－

－

－

Monetary claims bought

－

－

－

－

－

－

－

－

－

－

Negotiable certificate of deposits

－

－

－

－

－

－

－

－

－

－

Others

－

－

－

－

－

－

－

－

－

－

Other securities

2,392,422 2,463,879

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:(Millions of yen)
As of March 31, 2008 As of March 31, 2009
Held-to-maturity debt securities－－

Unlisted foreign bonds－－

Others－－－－Investments in subsidiaries and affiliates

16,132

26,132Available-for-sale securities

38,49425,671

20,206

7,174

500

500

Policy-reserve-matching bonds

Unlisted domestic stocks (except over-the-counter stocks)
Unlisted foreign stocks (except over-the-counter stocks)
Unlisted foreign bonds
OthersTotal- 11 -－－

17,78817,99654,62751,803

Fukoku Mutual Life Insurance Company

(v) Fair Value Information on Money Held in Trust(Millions of yen)
As of March 31, 2008
Carrying valueonbalance sheets

Money held in trust

57,527

As of March 31, 2009

LossesCarrying valueonbalance sheets－

33,053

Gains/losses

Fair value

Gains57,527－－

Gains/losses

Fair value

Gains
33,053－－Losses－* Money held in trust for trading purpose(Millions of yen)
As of March 31, 2008

As of March 31, 2009

Net valuation gains/losses
included in the statementsof operations

Carrying value onbalance sheets
56,527

Money held in trust for trading purpose

Net valuation gains/losses
included in the statementsof operations

Carrying value onbalance sheets(5,701)520

32,053* Money held in trust classified as held-to-maturity, policy-reserve-matching and available-for-sale(Millions of yen)
As of March 31, 2008
Book value

As of March 31, 2009

Gains/losses

Fair value

Gains

Book value

Gains/losses

Fair value

Losses

Gains

LossesMoney held in trust for held-to-maturity

－

－

－

－

－

－

－

－

－

－

Money held in trust for policy-reserve-matching

－

－

－

－

－

－

－

－

－

－

Money held in trust for available-for-sale

－

－

－

－

－

－

－

－

－

－

- 12 -

Fukoku Mutual Life Insurance Company

(reference) Fair Value Information on Derivative Instruments (General Account)(i) Gains and Losses on Derivatives
As of March 31, 2008
Hedge accounting applied
Hedge accounting not applied
Total
As of March 31, 2009
Hedge accounting applied
Hedge accounting not applied
Total(Millions of yen)Interestrelated
639
－
639
Interestrelated
751
－
751

CurrencyStockBondrelated
relatedrelated
－
－
－
－
－
(627)
－
－
(627)
CurrencyStockBondrelated
relatedrelated(954)－－－(2,393) (4,600)－(3,347) (4,600)

Others

Total
－
－
－

639
(627)
12
Total

Others－－－(203)(6,993)(7,197)

Note: Gains and losses from applying fair value hedge accounting (currency- related, losses of \954 million as of March 31, 2009) included in gains and losses withhedge accounting applied, and gains and losses with hedge accounting not applied are reported in the statements of operations.

(ii)Interest-related Transactions
As of March 31, 2008
Notional amount/contract value
Fair
Over
value
1 yearGains(losses)(Millions of yen)
As of March 31, 2009
Notional amount/contract value
Fair
Gains
Over
value (losses)
1 yearOver-the-counter transactions
Interest rate swap contracts
Receipt fixed, payment floating
Payment fixed, receipt floating

87,3322,500

71,662
2,500

688
(48)

Total

688
(48)
639

71,0582,500

66,738
2,500

789
(38)

789
(38)
751

* Interest rate swap contracts by contractual maturity dates

Notional amount (receipts fixed, payments floating)

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

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

As of March 31, 2008Over
1 year orOver
1 year toshorter
3 years
3 years
15,67026,78644,876
1.16%
1.20%
1.58%
1.42%
1.15%
1.23%
2,500
－
－
1.16%
－
－
1.84%
－
－

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

Fukoku Mutual Life Insurance Company

(iii) Currency-related Transactions
As of March 31, 2008
Notional amount/
Fair
contract value
value
Over
1 yearOver-the-counter transactions
Currency forward contracts
Sold
US dollar
Euro
Canadian Dollar
British Pound
BoughtCurrency Option
Sold
Calls
[
US dollar[
Australian dollar[
Euro[
Canadian Dollar
[
Puts
[
Euro
[
Bought
Calls
[
Puts
[
US dollar[
Australian dollar[
Euro[
Canadian Dollar[
Currency swap contracts
Australian dollar

40,324
13,787
21,670
2,922
1,943
－

－
－
－
－
－
－

74,000
491 ]
8,404
52 ]
3,880
23 ]
57,596
373 ]
4,120
43 ]
5,680
30 ]
5,680
30 ]

－
436

(719)
(222)
(435)
(9)
(51)
－

54 [

－
2

49 [

－
2

20 [

－
425

(51) [

－
6

36 [

－
2

28 [

－

－
－]
84,040751 ]32,120252 ]－－]48,160
456 ]
3,760
43 ]
4,000
4,000

41,04414,00922,106
2,932
1,995
－

Gains
(losses)

2

28 [

－

－ [

－

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

61,583653 ]
43,449395 ]
12,534
219 ]
5,600
39 ]
－
－]
－
－]
－
－]

－

37

(5) [

－
－]
57,040653 ]
40,550395 ]
11,400
219 ]
5,090
39 ]
－
－]

(87)
(87)

(87)
(87)

4,000
4,000

－
847

96 [

－
683

431 [

－
－

－ [

－
126

(329) [

－

4,000
4,000

(Millions of yen)
As of March 31, 2009
Notional amount/
Fair
Gains
contract value
value(losses)Over
1 yearTotal(2,665)(896)(1,768)
－
－
－

861

(207)

232

162

601

(382)

27

12

－

－

－

－

－

－

－

－

237

(416)

191

(203)

4

(214)

41

1

－

－

(58)
(58)

(58)
(58)

－
－
－
－
－
－
－
－
－
－
－
－

4,000
4,000

(627)

(3,347)

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 fiscal year.
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
As of March 31, 2008
Notional amount/Gainscontract value
Fair value(losses)Over
1 yearExchange-traded transactions
Yen stock index futures
Sold
Bought

－
－

－
－

－
－

－
－
－

Total

(Millions of yen)
As of March 31, 2009
Notional amount/Gainscontract value
Fair value(losses)Over
1 year

38,703－－－43,303－(4,600)－(4,600)(v) Bond-related Transactions
As of March 31, 2008 and 2009, there were no bond-related transactions.

- 14 -

Fukoku Mutual Life Insurance Company

(reference) Fair Value of Real Estate (Land and Leaseholds)(Millions of yen)
As of March 31, 2008
Carrying value on
the balance sheets

Fair value

106,895

266,035

As of March 31, 2009
Gains(losses)

Carrying value on
the balance sheets

159,139

142,001

Fair value
269,274

Gains(losses)
127,273

Notes: 1. As of March 31, 2008, fair value is based on the appraisal value for property tax as of January 1, 2008 and the road rate asof January 1, 2007.
2. As of March 31, 2009, fair value is based on the appraisal value by the real-estate appraiser, the appraisal value for property
tax as of January 1, 2009 and the road rate as of January 1, 2008.

- 15 -

Fukoku Mutual Life Insurance Company

4. Non-consolidated Balance Sheets
As of March
31, 2008
Assets:Cash and deposits
CashBank deposits
Call loans
Monetary claims bought
Money held in trust
Securities
Government bonds
Local government bonds
Corporate bonds
StocksForeign securities
Other securities
Loans
Policy loans
Ordinary loans
Tangible fixed assets
Land
Buildings
Construction in progress
Other tangible fixed assets
Intangible fixed assets
Software
Other intangible fixed assets
Reinsurance receivables
Other assets
Accounts receivable
Prepaid expenses
Accrued income
Deposits
Differential account for futures trading
Derivatives
Suspense payment
Other assets
Deferred tax assets
Allowance for possible loan losses

Total assets

45,296
128
45,168125,500
2,533
57,527
3,962,459
1,782,029
138,278
560,305
643,452
787,019
51,373
1,231,963
77,5401,154,423
205,952
106,720
94,416
759
4,056
8,423
7,973
449
120
59,40019,165
1,414
26,603
2,247
－
1,434
4,560
3,974
36,106(10,052)

5,725,231(Millions of yen)
As of March As of March
31, 2008
31, 2009

As of March
31, 2009
Liabilities:
49,382 Policy reserves
Reserve for outstanding claims
134
Policy reserve
49,248Reserve for dividends to policyholders
183,600
2,055 Reinsurance payables
33,053 Subordinated bonds
3,596,377 Other liabilities
Corporate income tax payable
1,746,556
Accounts payable
136,848
Accrued expenses
616,227
Unearned income
448,295
Deposits received
596,372
Guarantee deposits received
52,077
Derivatives
1,238,205
Suspense receipt
76,967
1,161,237 Reserve for employees' retirement benefits
250,065 Reserve for price fluctuation of securities
141,825 Deferred tax liabilities for revaluation reserve for land
98,937 Total liabilities
5,457 Net assets:
3,845 Foundation funds
7,785 Accumulated foundation funds redeemed
7,337 Reserve for revaluation
448 Surplus
Legal reserve for future losses
122
Other surplus
54,674
Reserve for redemption of foundation funds
12,9302,393
Reserve for dividend allowances
21,523
Reserve for advanced depreciation ofreal estate for tax purpose
2,416
5,027
Other reserves
1,682
Unappropriated surplus
4,340 Total foundation funds and surplus
4,360 Net unrealized gains (losses) on available110,422 for-sale securities, net of tax(11,290) Deferred valuation gains (losses) underhedge accounting
Revaluation reserve for land, net of tax
Total valuation and translation adjustments
Total net assets
5,514,454 Total liabilities and net assets- 16 -

5,262,578
26,415
5,181,780
54,382102
47,362
44,7339,316
3,274
10,931479
5,043
12,7081,422
1,557
49,50453,911
20,076
5,478,270

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

40,00031,000112
72,441
1,787
70,653
10,000
3,895

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

319
767
55,671
143,553311
767
56,660154,733

115,334(35,474)408(12,335)
103,407
246,961479
814(34,180)
120,553

5,725,231

5,514,454

Fukoku Mutual Life Insurance Company

5. Non-consolidated Statements of Operations

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

- 17 -

Year ended March
31, 2008(Millions of yen)
Year ended March
31, 2009

736,468
736,241226
146,216
122,983584
83,91025,075
12,771641
1,827
21,031
373
23,774851
18,702
1,955
－
743
1,521
906,459

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

601,926
235,444
76,212
144,598
120,386
24,934349
73,967－73,766200
59,595
2,466
6,251
－
15,511
2,731
961
443
745
4,753
5,965
19,76587,913
24,97813,377
5,100
6,149
350
848,381
58,077596,550
205,663
89,550151,181
109,976
39,840
338
2,047
1,804
－
242
169,435
1,974
3,912
3,343
95,471
25,268
110
2,348
1,243
4,226
6,450
25,086
86,13725,34914,532
4,957
5,583
277
879,520
2,164

42
－
42

41,72429,28971,014

240
398
3,845
4,484
53,635
18,905(10,655)
8,249
45,385

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

Fukoku Mutual Life Insurance Company

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

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

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

ii)

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

iii)

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

iv)

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

v)

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

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

- 18 -

Fukoku Mutual Life Insurance Company

separate component of net assets and the related tax is recorded as deferred tax liabilities forrevaluation reserve for land.
• Date of revaluation: March 31, 2002
• Method of revaluation as prescribed for in Article 3 Paragraph 3 of the said Law:
Calculation is based on the appraisal value for property tax set forth in Article 2 item 3 of the
Enforcement Ordinance of the Law for Revaluation of Land (Government Ordinance No.119
promulgated on March 31, 1998) and the road rate set forth in Article 2 item 4 of the said
Ordinance with certain reasonable adjustments.
(4) Depreciation of Tangible Fixed Assets
Depreciation of tangible fixed assets is calculated by the following methods.
• Buildingsi)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 buildingsi)Acquired on or before March 31, 2007: Previous declining-balance methodii)

Acquired on or after April 1, 2007: Declining-balance method

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,
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 of- 19 -

Fukoku Mutual Life Insurance Company

guarantees is written-off directly from the borrower’s balance as the estimated uncollectible amounts.
The amounts written-off as of March 31, 2008 and 2009 were ¥875 million and ¥852 million,
respectively.
(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 the ruling in Article 115 of
the Insurance Business Law.
(9) Lease Transactions
For the year ended March 31, 2008, finance lease transactions that do not transfer ownership to thelessee were accounted for in a manner similar to accounting treatment for ordinary rental transactions.
For the year ended March 31, 2009, finance lease transactions that do not transfer ownership to thelessee whose commencement day was on or before March 31, 2008 continued to be accounted for ina manner similar to accounting treatment for ordinary rental transactions. For finance lease transaction
where the Company is lessor, the lease fee was recorded in “interest, dividends and other income”
and the amount after deduction of the amount equivalent to interest allocated over the lease term fromlease fee was recorded in “other investment expenses” as the cost of the corresponding lease assets,
at time of receiving lease fee.
(10) 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 item, valuation gains and losses on the foreign currency forward contracts are recorded in thestatements 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 item, 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 are used tohedge 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 exchange rate on
trade date and forward contract rate are allocated to each fiscal year from the date contracted to thedate settled.
For judging the effectiveness of hedge used, ratio analysis of comparing the cash flow fluctuation ofhedged item with the same of hedging instruments is mostly applied.
(11) Accounting for Consumption Taxes
The Company accounts for consumption taxes by the tax-exclusion method. The consumption taxes
on certain assets, which are not deductible from consumption taxes withheld and that are stipulated to
be deferred under the Tax Law, are deferred as prepaid expenses and amortized equally over five
years. Consumption taxes other than deferred consumption taxes are recognized as an expense whenincurred.
(12) Policy Reserve
Policy reserve is based on Article 116 of the Insurance Business Law, and the premium reserve at theend of fiscal year is calculated by the following method:- 20 -

Fukoku Mutual Life Insurance Company

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 isapplied.
(13) Software
The software for internal use is amortized based on straight-line method over the estimated useful
lives.
(14) Deferred Assets
Discount on bonds is amortized equally over the period for which interest on bonds is fixed. This
amount is deducted from bonds.
(15) 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).
The amounts of policy-reserve-matching bonds recorded on the balance sheets and the market valueof these bonds were ¥598,156 million and ¥612,619 million as of March 31, 2008 and ¥628,570 millionand ¥644,212 million as of March 31, 2009, respectively.
2. Changes in Accounting Policy(1) Effective for the year ended March 31, 2009, the Company adopted “Accounting Standard forLease Transactions“ (ASBJ Statement No.13 issued by the Accounting Standards Board of Japanon March 30, 2007). As a result, ordinary profits decreased by ¥2 million, compared to the previous
methods.
(2) Effective for the year ended March 31, 2008, in accordance with the revision of Corporate Tax Law,depreciation of tangible fixed assets acquired on or after April 1, 2007 is calculated by the straightline method and the declining-balance method stipulated in the revised law. As a result, ordinary
profits decreased by ¥45 million, compared to the previous methods.
The tangible fixed assets acquired on or before March 31, 2007 that are depreciated to their final
depreciable limit are depreciated equally over five years for their remaining book value. As a result,ordinary profits decreased by ¥71 million.
3. Loans Receivable
The total amounts of credits to bankrupt borrowers, delinquent loans, delinquent loans past 3 months
or more and restructured loans, which were included in loans, were ¥11,032 million and ¥10,749
million as of March 31, 2008 and 2009, respectively.
i)

The balances of credits to bankrupt borrowers were ¥492 million and ¥471 million as ofMarch 31, 2008 and 2009, respectively.

ii)

The balances of delinquent loans were ¥10,539 million and ¥10,277 million as of March 31,
2008 and 2009, respectively.

iii)

There were no balances of delinquent loans past 3 months or more as of March 31, 2008 and
2009.

iv)

There were no balances of restructured loans as of March 31, 2008 and 2009.

Credits to bankrupt borrowers represent loans, excluding the balances already written-off, which meetthe conditions prescribed in Article 96 Paragraph 1 Item 3 and 4 of the Enforcement Regulations of 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.

- 21 -

Fukoku Mutual Life Insurance Company

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 of principal
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 of claim orother terms, have been negotiated for the purpose of assisting and supporting the borrowers in the
restructuring of their business. This category excludes loans classified as credits to bankrupt
borrowers, delinquent loans and delinquent loans past 3 months or more.
The direct write-offs related to loans decreased credits to bankrupt borrowers described above by ¥87
million and ¥66 million as of March 31, 2008 and 2009, respectively.
The direct write-offs related to loans decreased delinquent loans described above by ¥787 million and¥786 million as of March 31, 2008 and 2009, respectively.
4. Accumulated Depreciation of Tangible Fixed Assets
Accumulated depreciation of tangible fixed assets totaled to ¥122,527 million and ¥124,586 million asof March 31, 2008 and 2009, respectively.
5. Separate Accounts
Total assets in separate accounts provided for in Article 118 of the Insurance Business Law were
¥117,591 million and ¥113,498 million as of March 31, 2008 and 2009, respectively. The amounts ofliabilities were the same as these figures.
6. Receivables from / Payables to Subsidiaries
The total amounts of receivables from / payables to subsidiaries were ¥3,642 million and ¥1,479
million as of March 31, 2008, and ¥3,579 million and ¥1,281 million as of March 31, 2009, respectively.
7. Monetary Claims to Directors
Monetary claims to directors as of March 31, 2007 and 2008 were ¥16 million and ¥12 million,
respectively.
8. Income Taxes
Deferred tax assets and deferred tax liabilities as of March 31, 2008 were ¥106,636 million and¥67,693 million, respectively. Valuation allowance for deferred tax assets was ¥2,836 million.
Major components of deferred tax assets were ¥60,587 million of policy reserves, ¥19,521 million ofreserve for price fluctuation of securities and ¥17,925 million of reserve for employees’ retirement
benefits and major component of deferred tax liabilities was ¥65,469 million of net unrealized gains onavailable-for-sale securities as of March 31, 2008.
The statutory tax rate and the actual effective tax rates for the year ended March 31, 2008 were 36.2%
and 15.4%, respectively. The major difference between the statutory tax rate and the actual effective
tax rate was (21.5%) of reserve for dividends to policyholders.
Deferred tax assets and deferred tax liabilities as of March 31, 2009 were ¥115,089 million and ¥1,939
million, respectively. Valuation allowance for deferred tax assets was ¥2,727 million.
Major components of deferred tax assets were ¥57,150 million of policy reserves, ¥20,136 million of
net unrealized losses of available-for-sale securities and ¥17,849 million of reserve for employees’
retirement benefits as of March 31, 2009.
The statutory tax rate and the actual effective tax rates for the year ended March 31, 2009 were 36.2%
and 20.8%, respectively. The major differences between the statutory tax rate and the actual effective
tax rate were (9.0%) of reserve for dividends to policyholders and (6.6%) of revaluation reserve forland.

- 22 -

Fukoku Mutual Life Insurance Company

9. Reserve for Dividends to Policyholders
Changes in reserve for dividends to policyholders were as follows:Year ended March 31,
2008

2009

(Millions of yen)
Balance at the end of previous fiscal year.........
Transfer from surplus in previous fiscal year.....
Dividends paid in fiscal year ..............................
Increase in interest ............................................
Balance at the end of fiscal year .......................

¥ 52,872
35,525(34,216)200¥ 54,382¥ 54,382
31,868(29,176 )242¥ 57,317

10. Stocks of Subsidiaries
The amounts of stocks of subsidiaries the Company held as of March 31, 2008 and 2009 were
¥17,525 million and ¥27,525 million, respectively.
11. Pledged Assets and Secured Debts
Assets pledged as collateral as of March 31, 2008 were ¥15,145 million of securities and ¥19 million ofmoney held in trust. Secured debts as of March 31, 2008 was ¥4,660 million.
Assets pledged as collateral as of March 31, 2009 were ¥25,959 million of securities. Secured debts
as of March 31, 2009 was ¥4,645 million.
12. Policy Reserves for the Reinsurance Contracts
Reserve for outstanding claims for the reinsurance contracts provided in accordance with Article 71
Item 1 of the Enforcement Regulation of the Insurance Business Law (hereinafter called “reserve foroutstanding claims for ceded reinsurance”) were ¥31 million and ¥55 million as of March 31, 2008 and2009, respectively.
Policy reserve for the reinsurance contracts provided in accordance with Article 71 Item 1 of the
Enforcement Regulation of the Insurance Business Law (hereinafter called “policy reserve for ceded
reinsurance”) were ¥29 million and ¥30 million as of March 31, 2008 and 2009, respectively.
13. Adjustment Items for Redemption of Foundation Funds and Appropriation of Net Surplus
Adjustment items for redemption of foundation funds and appropriation of net surplus defined in Article
30 Paragraph 2 of the Enforcement Regulation of the Insurance Business Law were ¥115,855 millionand ¥1,406 million as of March 31, 2008 and 2009, respectively.
14. Commitment LineAs of March 31, 2008 and 2009, there were unused commitment line agreements under which theCompany is the lender of ¥1,681 million and ¥1,481 million, respectively.
15. Subordinated Bonds
Repayments of subordinated bonds are subordinated to other obligations.
16. Assets Denominated in Foreign Currencies
Assets denominated in foreign currencies as of March 31, 2008 and 2009 totaled to ¥716,763 millionand ¥463,674 million, respectively. The principal foreign currency asset amounts were 2,401 million
euros and US$2,584 million as of March 31, 2008, and 1,551 million euros and US$2,465 million as ofMarch 31, 2009, respectively.
Liabilities denominated in foreign currencies as of March 31, 2008 and 2009 totaled to ¥48,542 millionand ¥39,840 million, respectively. The foreign currency liability amounts as of March 31, 2008 and2009 were 306 million euros.

- 23 -

Fukoku Mutual Life Insurance Company

17. Contribution to Policyholders Protection Corporation
The future contributions to the Life Insurance Policyholders Protection Corporation of Japan under
Article 259 of the Insurance Business Law were estimated at ¥11,302 million and ¥11,059 million as ofMarch 31, 2008 and 2009, respectively. The contributions were charged as operating expenses in theyear in which they were paid.
18. Reserve for Employees’ Retirement Benefits(1) The reserve for employees’ retirement benefits as of March 31, 2008 and 2009 were calculated asfollows:
As of March 31,
2008
2009
(Millions of yen)a. Projected benefit obligation .........................
b. Fair value of pension plan assets ................
c. Unfunded benefit obligation (a+b) ..............
d. Unrecognized actuarial differences .............
e. Unrecognized prior service cost ..................
f. Reserve for employees’ retirement benefits (c+d+e)¥ (71,776)
18,307(53,469)3,758
206¥ (49,504)¥ (71,981)
15,016(56,965)
7,499
172¥ (49,293)(2) Gross amount of retirement benefit expenses for the years ended March 31, 2007 and 2008 wereas follows:Year ended March 31,
2008
2009
(Millions of yen)
Service cost ...........................................................
Interest cost ...........................................................
Expected return on plan assets .............................
Recognized actuarial differences ..........................
Amortization of prior service cost ..........................

¥ 3,400
1,472
(964)
523
34
¥ 4,465¥ 3,218
1,434
(640)
779
34
¥ 4,826(3) The assumptions used in calculation of the above information were as follows:• Method of attributing the projected benefits toperiods of service .....................................................
• Discount rate .............................................................
• Expected rate of return on pension plan assets........
• Recognition period of actuarial differences ...............
• Amortization period of prior service cost ...................

- 24 -

Year ended March 31,
2008
2009
StraightStraightline basisline basis
2.0%
2.0%
4.5%
3.5%
10 years
10 years
10 years
10 years

Fukoku Mutual Life Insurance Company

III. Notes to Statements of Operations
1. Transactions with Subsidiaries
The total amounts of revenues and expenditures in connection with subsidiaries were ¥694 million and¥8,023 million for the year ended March 31, 2008, and ¥1,032 million and ¥7,170 million for the year
ended March 31, 2009, respectively,.
2. Gains on Sales of Securities
Major items of gains on sales of securities were as follows:Year ended March 31,
2008
2009
(Millions of yen)Domestic bonds .....................................................
Domestic stocks and other ....................................
Foreign securities ..................................................

¥ 2,722
11,566
6,743¥ 29,312
17,176
5,002

3. Losses on Sales of Securities
Major items of losses on sales of securities were as follows:Year ended March 31,
2008
2009
(Millions of yen)Domestic bonds .....................................................
Domestic stocks and other ....................................
Foreign securities ..................................................

¥ 4,720
7,182
3,608

¥ 2,427
43,67949,363

4. Losses on Valuation of Securities
Major items of losses on valuation of securities were as follows:Year ended March 31,
2008
2009
(Millions of yen)Domestic stocks and other ....................................
Foreign securities ..................................................

¥ 1,949782¥ 21,507
3,761

5. Policy Reserves for the Reinsurance Contracts
For the year ended March 31, 2008, reversal of reserve for outstanding claims for ceded reinsurance
considered in calculation of reversal of reserve for outstanding claims was ¥12 million and reversal ofpolicy reserve for ceded reinsurance considered in calculation of provision for policy reserve was ¥2
million.
For the year ended March 31, 2009, provision for reserve for outstanding claims for ceded reinsurance
considered in calculation of provision for reserve for outstanding claims was ¥24 million and provision
for policy reserve for ceded reinsurance considered in calculation of reversal of policy reserve was ¥0
million.

- 25 -

Fukoku Mutual Life Insurance Company

6. Gains / Losses from Trading Securities
Major items of gains / losses from trading securities were as follows:Year ended March 31,
2008
2009
(Millions of yen)Interest, dividends and other income.....................
Gains/(Losses) on sales of trading securities........
Gains/(Losses) on valuation of trading securities..

¥ 3,798
1,920(4,006 )¥ 2,645734(6,724 )7. Losses from Money Held in Trust
Losses from money held in trust for the years ended March 31, 2008 and 2009 included valuation
losses of ¥5,701 million and valuation gains of ¥520 million, respectively.
8. Losses from derivative Instruments
Losses from derivative instruments for the years ended March 31, 2008 and 2009 included valuation
gains of ¥95 million and valuation losses of ¥6,298 million, respectively.
9. Impairment of Fixed Assets
For the year ended March 31, 2009, impairment losses of fixed assets was as follows:(1) Method of grouping
Real estate and other assets used for insurance business operations are classified as one asset groupas a whole. Other assets such as lease property and unused real estate are classified as one groupindividually.
(2) Background of recognizing the impairment losses
As a result of decline in profitability due to decrease of rental income and decline of market value ofland, the Company reduced the book value of lease property and unused real estate to recoverable
amount. The amounts reduced were recognized as impairment losses included in extraordinary losses.
(3) Asset groups recognized impairment losses and losses by fixed assets

Asset

Land

Impairment losses
Buildings
and others

Total(Millions of yen)(i) Lease property .........
(ii) Unused real estate ...
Total (i)+(ii)................

¥ 205
55
¥ 260

¥ 40
213
¥ 254

¥ 245
269
¥ 514

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

- 26 -

Fukoku Mutual Life Insurance Company

6. Breakdown of Ordinary Profits (Fundamental Profit)

A

Fundamental profit
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)
Fundamental profit plus net capital gains (losses)
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)
Ordinary profits

B
A+B

C
A+B+C

Year ended
March 31, 2008

(Millions of yen)
Year ended
March 31, 2009

89,67575,666

21,031－－
21,031－－－
28,768
7,149
1,970
15,511
2,731
961
443
－
(7,736)
81,939－－－－23,862－
23,743
118－－－(23,862)
58,07751,491－－51,491－－－
133,619
4,430
5,989
95,471
25,268110
2,348－(82,127)(6,460)
9,339
－
9,339
－
714
－
－
714
－
－
－
8,625
2,164

Notes: 1. The following amounts in respect of gains / losses from money held in trust have been excluded from
capital gains / losses and included in fundamental profit due to their income nature (being interest anddividend income): ¥898 million in respect of the year ended March 31, 2008 and ¥518 million in respectof the year ended March 31, 2009.
2. The following amounts in respect of gains / losses from trading securities have been excluded from
capital gains / losses and included in fundamental profit due to their income nature (being interest anddividend income): ¥3,798 million in respect of the year ended March 31, 2008 and ¥2,645 million in respectof the year ended March 31, 2009.

Breakdown of Fundamental Profit(100 millions of yen)
Year ended
March 31, 2008
896
156
774
(33)

Fundamental profit
Loading profit
Mortality and morbidity profit
Negative spread- 27 -

Year ended
March 31, 2009
756
134
737

(116)

Fukoku Mutual Life Insurance Company

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

For the year ended
March 31, 2008

For the year ended
March 31, 2009

40,00040,000－40,000－40,00031,00031,000－31,000－31,000

112

112

－
112

－
112

1,587

1,787

200
200
1,787

200
200
1,987

－

10,00010,00010,00010,00010,00010,00020,000

3,895

3,895

－
3,895

－
3,895

343

319

(23)
(23)
319

(8)
(8)
311

2,770

－

(2,770)(2,770)
－

－
－
－

767

767

－
767

－
767

53,771

55,671(35,525)
(200)
(716)
45,385(10,000)
23
2,770
161
1,899
55,671(31,868)
(200)
(716)
56,863(10,000)
8－(13,098)
988
56,660Foundation funds and surplus
Foundation funds
Balance at the end of previous fiscal year
Changes in the current fiscal year
Total changes in the current fiscal year
Balance at the end of current fiscal year
Accumulated foundation funds redeemed
Balance at the end of previous fiscal year
Changes in the current fiscal year
Total changes in the current fiscal year
Balance at the end of current fiscal year
Reserve for revaluation
Balance at the end of previous fiscal year
Changes in the current fiscal year
Total changes in the current fiscal year
Balance at the end of current fiscal year
Surplus
Legal reserve for future losses
Balance at the end of previous fiscal year
Changes in the current fiscal year
Additions to legal reserve for future losses
Total changes in the current fiscal year
Balance at the end of current fiscal year
Other surplus
Reserve for redemption of foundation funds
Balance at the end of previous fiscal year
Changes in the current fiscal year
Additions to reserve for redemption of foundation funds
Total changes in the current fiscal year
Balance at the end of current fiscal year
Reserve for dividend allowances
Balance at the end of previous fiscal year
Changes in the current fiscal year
Total changes in the current fiscal year
Balance at the end of current fiscal year
Reserve for advanced depreciation of real estate for tax purpose
Balance at the end of previous fiscal year
Changes in the current fiscal year
Reversal of reserve for advanced depreciation of real estate for tax purpose
Total changes in the current fiscal year
Balance at the end of current fiscal year
Reserve for directors' retirement allowances
Balance at the end of previous fiscal year
Changes in the current fiscal year
Reversal of reserve for directors' retirement allowances
Total changes in the current fiscal year
Balance at the end of current fiscal year
Other reserves
Balance at the end of previous fiscal year
Changes in the current fiscal year
Total changes in the current fiscal year
Balance at the end of current fiscal year
Unappropriated surplus
Balance at the end of previous fiscal year
Changes in the current fiscal year
Additions to reserve for dividends to policyholders
Additions to legal reserve for future losses
Payment of interest on foundation funds
Net surplus for the year
Additions to reserve for redemption of foundation funds
Reversal of reserve for advanced depreciation of real estate for tax purpose
Reversal of reserve for directors' retirement allowances
Reversal of revaluation reserve for land
Total changes in the current fiscal year
Balance at the end of current fiscal year

- 28 -

Fukoku Mutual Life Insurance Company

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

For the year ended
March 31, 2008

For the year ended
March 31, 2009

63,13572,441(35,525)(716)
45,385161
9,305
72,441(31,868)(716)
56,863(13,098)
11,18083,621

134,247

143,553(35,525)(716)
45,385
161
9,305
143,553(31,868)(716)
56,863(13,098)
11,180154,733

273,377

115,334(158,043)(158,043)
115,334(150,809)(150,809)(35,474)

(152)

408

560
560
408

70
70
479

(12,204)(12,335)

(130)
(130)
(12,335)

13,14913,149814

261,020

103,407(157,612)(157,612)
103,407(137,588)(137,588)(34,180)

395,268

246,961(35,525)(716)
45,385
161(157,612)(148,307)
246,961(31,868)(716)
56,863(13,098)(137,588)(126,407)
120,553

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

- 29 -

Fukoku Mutual Life Insurance Company

8. Non-consolidated Statements of Surplus(Millions of Yen)
Year ended
March 31, 2008

Year ended
March 31, 2009

55,671

56,660

8

7

8

7

Total

55,67956,667

Appropriation of surplus

42,784

28,772

Reserve for dividends to policyholders

31,86817,856

Net surplus

10,916

10,916

Legal reserve for future losses

200

200

Interest payment for foundation funds

716

716

10,00010,00010,00010,00012,89427,894

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

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

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

- 30 -

Fukoku Mutual Life Insurance Company

9. Disclosed Claims Based on Categories of Obligors(Millions of yen)
As of March 31, 2008 As of March 31, 2009
Claims against bankrupt and quasi-bankrupt obligors

636

637

Claims with collection risk

10,536

10,498Claims for special attention－－

Subtotal

11,173

11,136[Percentage of total][0.90%][0.89%]

1,227,598

1,233,357

1,238,771

1,244,493

Claims against normal obligors
Total

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

- 31 -

Fukoku Mutual Life Insurance Company

10. Risk-monitored Loans(Millions of yen)
As of March 31, 2008 As of March 31, 2009
Credits to bankrupt borrowers

492

471

10,53910,277

Delinquent loans past three months or more－－

Restructured loans

－

－

Total

11,032

10,749[Percentage of total loans][0.90%][0.87%]

Delinquent loans

Notes: 1. For the credits of legally bankrupt borrowers and substantially bankrupt borrowers, the amounts
remaining after deductions of collateral value or the amounts collectible through the execution ofguarantees is written-off directly from the borrower’s balance as the estimated uncollectible amounts.
The amounts written-off related to credits to bankrupt borrowers were ¥87 million as of March 31, 2008and ¥66 million as of March 31, 2009. The amounts written-off related to delinquent loans were ¥787
million as of March 31, 2008 and ¥786 million as of March 31, 2009.
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 that principal of or intereston these loans is unlikely to be collected due to the significant delay in repayment of principal orinterest payment or for some other reasons.
3. Delinquent loans are credits whose accruing interest is not recorded as income due to the same
reasons as described in note 2 above, and exclude credits to bankrupt borrowers and loans for whichinterest payments have been suspended and rescheduled to assist and support the borrowers in the
restructuring of their business.
4. Delinquent loans past three months or more are loans for which interest payment or repayment ofprincipal are delinquent for three months or more from the due date under the terms of the related loan
agreements, excluding those loans classified as credits to bankrupt borrowers and delinquent loans.
5. Restructured loans are loans for which certain concessions favorable to borrowers, such as interest
reduction or exemptions, rescheduling of due date of principal or interest payment, waiver of claim orother terms, have been negotiated for the purpose of assisting and supporting the borrowers in the
restructuring of their business. This category excludes loans classified as credits to bankrupt
borrowers, delinquent loans and delinquent loans past three months or more.

- 32 -

Fukoku Mutual Life Insurance Company

11. Solvency Margin Ratio(Millions of yen)

As of
As of
March 31, 2008 March 31, 2009
Total solvency margin(A)

788,210533,712Foundation funds and surplus

110,267

135,748

Reserve for price fluctuation of securities

53,911

24,622

Contingency reserve

154,500

145,160

4,250

4,779

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

162,723(55,611)

Net unrealized gains on real estate x 85%

141,848

125,897

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

86,752

94,391

Qualifying subordinated debt

47,36238,870Allowance for possible loan losses－

Excluded items
OthersTotal risk ( R1 + R8 ) 2 + (R2 + R3 + R7 )2 + R4

(B)

（10,000）

26,59429,854137,444

105,844

Insurance risk

R1

29,977

29,468

3rd sector insurance risk

R8

9310

9,360

Assumed investment yield risk

R2

19,616

19,110Investment risk

R3

108,581

76,443Business risk

R4

3,349

2,687

Minimum guarantee risk

R7

11

15

1,146.9%

1,008.4 ％Solvency margin ratio(A)
1/2 x (B)x 100

Notes: 1. Above figures are calculated based on Articles 86 and 87 of the Enforcement Regulation of the Insurance Business Law
and Ministry of Finance Ordinance No. 50, 1996. ("Excess amount of policy reserve based on full-time Zilllmer method
is calculated based on Article 1 Paragraph 3-1 of Ordinance No.50.)
2. "Excluded items" as of March 31, 2009 represent the capital increase to the subsidiary, Fukokushinrai Life Insurance Co., Ltd.
3. "Minimum guarantee risk" is calculated by standard method.

- 33 -

Fukoku Mutual Life Insurance Company

12. Status of Separate Account(1) Separate Account Assets by Products(Millions of yen)
As of
As of
March 31, 2008 March 31, 2009
AmountAmountIndividual variable insurance－－

Individual variable annuities

887

637

Group annuities

116,704

112,861

Total

117,591

113,498(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, 2009
Number ofAmountpolicies

As of March 31, 2008
Number ofAmountpolicies
Individual variable annuities

225

838

209

764

(ii) Breakdown of Separate Account Assets for Individual Variable Annuities(Millions of yen)
As of March 31, 2009
AmountPercentage

As of March 31, 2008
AmountPercentage
Cash, deposits, call loans

149

16.8

122

19.1

Securities

738

83.2

515

80.9

Domestic bonds

－

－

－

－

Domestic stocks

－

－

－

－

Foreign securities

－

－

－

－

Foreign bonds

－

－

－

－

Foreign stocks and other securities

－

－

－

－

738

83.2

515

80.9

Loans

－

－

－

－

Others－－－－Allowance for possible loan losses

－

－

－

－

887

100.0

637

100.0

Other securities

Total- 34 -

Fukoku Mutual Life Insurance Company

(iii) Investment Income and Expenses of Separate Account for Individual Variable Annuities(Millions of yen)
Year ended March 31, 2008

Year ended March 31, 2009

AmountAmountInterest, dividends and other income

312

Gains on sales of securities－－

Gains of redemption of securities－－

Gains on valuation of securities

74

15

Foreign exchange gains, net－－

Gains from derivative instruments－－

Other investment income－－

Losses on sales of securities－

4

Losses on redemption of securities－－

Losses on valuation of securities

259

175

Foreign exchange losses, net－－

Losses from derivative instruments－－

Other investment expenses

－

－

(153)

(161)

Net investment income(iv) Fair Value Information on Securities in Separate Account for Individual Variable Annuities* Net Valuation Gains/Losses on Trading Securities(Millions of yen)
As of March 31, 2009

As of March 31, 2008

Trading securities

Carrying valueonbalance sheets

Net valuation
gains/losses
included in thestatementsof operations

Carrying valueonbalance sheets

Net valuation
gains/losses
included in thestatementsof operations

738

(185)

515

(159)

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

- 35 -

Fukoku Mutual Life Insurance Company

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

Trading securities

As of March 31, 2008
Net valuation gains/losses
Carrying value on
included in the statements
balance sheetsof operations(29,175)
232,946

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

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

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

As of March 31, 2008

As of March 31, 2009

Gains/losses

Book value Fair value

Gains/losses

Book value Fair value

Gains

Losses

Gains

Losses170,358

172,310

1,951

4,749

2,798

152,157

156,525

4,368

5,177

809

Domestic bonds

121,656

126,386

4,730

4,732

2

113,032

117,328

4,296

4,332

36

Foreign bonds

48,70245,924(2,778)17

2,795

39,12539,197

71

845

773

Monetary claims bought

－

－

－

－

－

－

－

－

－

－

Negotiable certificate of deposits

－

－

－

－

－

－

－

－

－

－

Others

－

－

－

－

－

－

－

－

－

－

598,156

612,619

14,463

14,720256

628,570644,212

15,641

16,131

489

1,393

1,201

(191)

－

191

1,393

954

(438)

－

438

2,780,701 2,961,505

180,803

235,264

54,460 2,678,173 2,622,561(55,611)

77,291

132,903

Held-to-maturity debt securities

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

1,672,609 1,724,874
423,694565,598

52,26454,592

2,328 1,705,656 1,727,224

21,56828,906

7,338

141,903

161,588

19,685(17,813)45,49563,309403,395

385,582

Foreign securities

637,330

628,186(9,143)

17,82826,972519,208

466,188(53,020)

2,388

55,408Foreign bonds

467,778458,613(9,165)

8,518

17,683

328,436

306,869(21,567)

1,942

23,509Foreign stocks and other securities

169,551

169,573

21

9,309

9,288

190,772

159,319(31,452)445

31,89847,06642,847(4,219)

1,255

5,474

49,912

43,566(6,346)

501

6,847

Money held in trust

－

－

－

－

－

－

－

－

－

－

Monetary claims bought

－

－

－

－

－

－

－

－

－

－

Negotiable certificate of deposits

－

－

－

－

－

－

－

－

－

－

Others

－

－

－

－

－

－

－

－

－

－

3,550,609 3,747,636

197,026

254,734

57,707 3,460,294 3,424,254(36,039)

98,600134,640

Other securities

Total
Domestic bonds

71,45774,0452,587 2,447,258 2,488,764

41,50649,3707,863

Domestic stocks

423,694565,598

141,903

161,588

19,685403,395

385,582(17,813)45,49563,309Foreign securities

687,425

675,311(12,114)

17,84529,959559,727

506,341(53,386)

3,233

56,619Foreign bonds

516,481504,537(11,944)

8,535

20,479367,562

346,066(21,495)

2,787

24,283Foreign stocks and other securities

170,944

170,774

(170)

9,309

9,480

192,165

160,274(31,891)445

32,33647,06642,847(4,219)

1,255

5,474

49,912

43,566(6,346)

501

6,847

Money held in trust

－

－

－

－

－

－

－

－

－

－

Monetary claims bought

－

－

－

－

－

－

－

－

－

－

Negotiable certificate of deposits

－

－

－

－

－

－

－

－

－

－

Others

－

－

－

－

－

－

－

－

－

－

Other securities

2,392,422 2,463,879

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:(Millions of yen)
As of March 31, 2008 As of March 31, 2009
Held-to-maturity debt securities－－

Unlisted foreign bonds－－

Others－－－－Investments in subsidiaries and affiliates

16,132

26,132Available-for-sale securities

Policy-reserve-matching bonds

38,49425,671

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

20,206

7,174

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

500

500

Unlisted foreign bonds
OthersTotal- 36 -－－

17,78817,99654,62751,803

Fukoku Mutual Life Insurance Company

(reference) Fair Value Information on Derivative Instruments (Total of General Account and Separate Account)(i) Gains and Losses on Derivatives
As of March 31, 2008
Hedge accounting applied
Hedge accounting not applied
Total
As of March 31, 2009
Hedge accounting applied
Hedge accounting not applied
Total(Millions of yen)Interestrelated
639
－
639
Interestrelated
751
－
751

CurrencyStockBondrelated
relatedrelated
－
－
－
－
－
(627)
－
－
(627)
CurrencyStockBondrelated
relatedrelated－－(954)－(2,393) (4,600)－(3,348) (4,600)

Others

Total
－
－
－

Others

639
(627)
12
Total

－
－
－

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

Note: Gains and losses from applying fair value hedge accounting (currency-related, losses of \954 million as of March 31, 2009) included in gains and losses with hedge
accounting applied, and gains and losses with hedge accounting not applied are reported in the statements of operations.

(ii)Interest-related Transactions
As of March 31, 2008
Notional amount/contract value
Fair
Over
value
1 yearGains(losses)(Millions of yen)
As of March 31, 2009
Notional amount/contract value
Gains
Fair
Over
value (losses)
1 yearOver-the-counter transactions
Interest rate swap contracts
Receipt fixed, payment floating
Payment fixed, receipt floating

87,3322,500

71,662
2,500

688
(48)

Total

688
(48)
639

71,0582,500

66,738
2,500

789
(38)

789
(38)
751

* Interest rate swap contracts by contractual maturity dates

Notional amount (receipts fixed, payments floating)

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

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

As of March 31, 2008Over
1 year orOver
1 year toshorter
3 years
3 years
26,786
15,67044,876
1.16%
1.20%
1.58%
1.15%
1.42%
1.23%
2,500
－
－
1.16%
－
－
1.84%
－
－

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

Fukoku Mutual Life Insurance Company

(iii) Currency-related Transactions
As of March 31, 2008
Notional amount/
Fair
contract value
Over
value
1 yearOver-the-counter transactions
Currency forward contracts
Sold
US dollar
Euro
British Pound
Canadian Dollar
BoughtCurrency Option
Sold
Calls
[
US dollar[
Australian dollar[
Euro[
Canadian Dollar
[
Puts
[
Euro
[
Bought
Calls
[
Puts
[
US dollar[
Australian dollar[
Euro[
Canadian Dollar[
Currency swap contracts
Australian dollar

40,324
13,787
21,670
1,943
2,922
－

－
－
－
－
－
－

74,000
491 ]
8,404
52 ]
3,880
23 ]
57,596
373 ]
4,120
43 ]
5,680
30 ]
5,680
30 ]

－

－
－]
84,040751 ]32,120252 ]－－]48,160
456 ]
3,760
43 ]

－

4,000
4,000

(Millions of yen)
As of March 31, 2009
Notional amount/
Fair
Gains
contract value
Overvalue (losses)
1 yearGains(losses)

41,04414,00922,106
1,995
2,932
－

(719)
(222)
(435)
(51)
(9)
－

436

54

[

－
2

49

[

－
2

20

[

－
425

(51) [

－
6

36

[

－
2

28

[

－
2

28

[

－

－ [

－ 216,735－ 125,222－ 91,503
9
－
－
－
－
－

61,583653 ]
43,449395 ]
12,534
219 ]
5,600
39 ]
－
－]
－
－]
－
－]

－

－

37

(5) [

－
－]
57,040653 ]
40,550395 ]
11,400
219 ]
5,090
39 ]
－
－ ]

(87)
(87)

(87)
(87)

4,000
4,000

－
847

96

[

－
683

431

[

－
－

－ [

－
126

(329) [

－

4,000
4,000

214,070
124,325
89,734
9
－
－

Total

(2,665)(896)(1,768)
(0)
－
－

861

(207)

232

162

601

(382)

27

12

－

－

－

－

－

－

－

－

237

(416)

191

(203)

4

(214)

41

1

－

－

(58)
(58)

(58)
(58)

－
－
－
－
－
－

－
－
－
－
－

4,000
4,000

(627)

(3,348)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 fiscal year.
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
As of March 31, 2008
Notional amount/contract value
Fair valueOver
1 yearGains(losses)(Millions of yen)
As of March 31, 2009
Notional amount/Gainscontract value
Fair valueOver(losses)
1 yearExchange-traded transactions
Yen stock index futures
Sold

－

－

－

－

38,703－43,303(4,600)Bought

－

－

－

－

－

－

－

－

－

Total

(4,600)(v) Bond-related Transactions
As of March 31, 2008 and 2009 there were no bond-related transactions.

- 38 -

Fukoku Mutual Life Insurance Company