May 24, 2023

Financial Results for the Fiscal Year Ended March 31, 2023
Fukoku Mutual Life Insurance Company (President: Yoshiteru Yoneyama) announces
financial results for the fiscal year ended March 31, 2023.

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

P. 1

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

P. 3

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

P.11

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

P.12

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

P.26

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

P.27

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

P.29

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

P.30

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

P.31

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

P.32

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

P.39

Attached: Supplementary Materials for the Fiscal Year Ended March 31, 2023

Fukoku Mutual Life Insurance Company

Financial Summary for the Fiscal Year Ended March 31, 2023
1. Business Highlights(1) Policies in Force, New Policies and Surrendered and Lapsed Policies(i) Policies in Force
As of March 31, 2022
Number of policies

As of March 31, 2023

AmountNumber of policies(Thousands)

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

Individual insurance

3,165

99.8

223,80999.9

Individual annuities

583

96.6

22,692

96.1

3,749

99.3

246,501

Group insurance——Group annuities——

Subtotal

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

3,159

99.8

221,734

99.1

562

96.3

21,722

95.7

99.5

3,722

99.3

243,45698.8

173,407

98.9

—

—

172,790

99.6

22,898

101.3

—

—

23,048100.7

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

(ii) New Policies
Total
Year ended March 31, 2022

Number of policies(Thousands)

AmountChanges(%, YoY)

Net increase by
conversion

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

Individual insurance

344

117.0

16,001

108.2

12,201

111.2

3,800

99.5

Individual annuities

7

110.8

223

108.9

232

108.4

(8)

—

Subtotal

351

116.9

16,224108.2

12,433

111.1

3,791

99.5

Group insurance

—

—

158

520.0

158

520.0

—

—

Group annuities

—

—

9

8,980.1

98,980.1

—

—

Total
Year ended March 31, 2023

Number of policies(Thousands)

Individual insurance
Individual annuities

AmountChanges(%, YoY)

323

94.1

Net increase by
conversion

New business(100 millionsof yen)13,899AmountChanges(%, YoY)

86.9(100 millionsof yen)11,023

AmountChanges(%, YoY)

90.4(100 millionsof yen)2,875

Changes(%, YoY)

75.7

6

87.5

198

88.6

206

88.8

(8)

—

Subtotal

330

93.9

14,097

86.9

11,230

90.3

2,867

75.6

Group insurance

—

—

116

73.5

116

73.5

—

—

Group annuities

—

—

164

1,659.4

164

1,659.4——

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

(iii) Surrendered and Lapsed Policies (Individual Insurance and Individual Annuities)
Year ended
March 31, 2022

Year ended
March 31, 2023

Changes(%, YoY)

Changes(%, YoY)

Amount of surrender andlapse (100 millions of yen)

11,256110.4

11,064

98.3

Surrender and lapse ratio (%)

4.55

0.45

4.49

(0.06)

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

1

Fukoku Mutual Life Insurance Company

(2) Annualized Premiums(i) Policies in Force(100 millions of yen, %)As of March 31, 2022

As of March 31, 2023

Changes(%, Pre-FYE)

Changes(%, Pre-FYE)

Individual insurance

2,638

99.0

2,629

99.7

Individual annuities

1,093

97.6

1,066

97.5

Total

3,731

98.6

3,695

99.0

1,154

101.0

1,164

100.9

Medical coverage and living benefits(ii) New Policies(100 millions of yen, %)Year ended March 31, 2022

Year ended March 31, 2023
Changes(%, YoY)

Changes(%, YoY)

Individual insurance

128

112.4

136

105.7

Individual annuities

6

108.4

5

87.9

135

112.2

141

104.9

70

115.4

70

99.9

Total
Medical coverage and living benefits

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

(3) Selected Items of Statements of Operations(100 millions of yen, %)Year ended March 31, 2022

Year ended March 31, 2023

Changes(%, YoY)

Changes(%, YoY)

Premium and other income

4,864

100.3

5,260

108.1

Investment income

1,943

94.0

2,346

120.8

Claims and other payments

4,160

100.2

5,047

121.3

Investment expenses

433

87.6

910

210.2

Ordinary profits

387

44.0

325

83.9

(4) Statements of Surplus(100 millions of yen, %)Year ended March 31, 2022

Year ended March 31, 2023

Changes(%, YoY)

Changes(%, YoY)

Unappropriated surplus

570

96.6

543

95.2

Reserve for dividends to policyholders

307

93.8

280

91.1

Net surplus

25

99.8

25

99.7

Unappropriated surplus carried forward

237

100.0

237

100.0

Note: Unappropriated surplus for the years ended March 31, 2022 and 2023 included reversal of voluntary surplus
reserve of ¥1 million and ¥1 million, respectively.

(5) Total Assets(100 millions of yen, %)As of March 31, 2022

As of March 31, 2023

Changes(%, Pre-FYE)

Total assets

73,893103.2

2

Changes(%, Pre-FYE)

72,262

97.8

Fukoku Mutual Life Insurance Company

2. Investment Results of General Account Assets(1) Asset Composition(Millions of yen, %)As of March 31, 2022

As of March 31, 2023

AmountAmount% of total

202,459

Cash, deposits, and call loans

2.8 %% of total

525,043

7.4 %

80

0.0

—

—

26,0700.4

25,8970.4

6,173,529

84.8

5,692,461

80.1

Domestic bonds

2,884,480

39.6

3,003,156

42.3

Domestic stocks

768,95410.6

808,831

11.4

Foreign securities

2,335,951

32.1

1,705,027

24.0

Foreign bonds

1,823,435

25.1

1,194,387

16.8

512,5167.0

510,6397.2

184,143

2.5

175,4452.5

553,305

7.6

524,193

7.4

Policy loans

48,6290.7

47,0880.7

Ordinary loans

504,675

6.9

477,104

6.7

241,164

3.3

242,980

3.4——

13,8290.2

Others82,725

1.1

83,918

1.2

Allowance for possible loan losses(2,515)

(0.0)

(826)

(0.0)

7,276,821

100.0

7,107,497

100.0

2,629,067

36.1

1,802,337

25.4

Monetary claims bought
Money held in trust
Securities

Foreign stocks and other securities
Other securities
Loans

Real estate
Deferred tax assets

Total
Foreign currency denominated assets

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

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

Year ended March 31, 2022

Cash, deposits, and call loans

Year ended March 31, 2023

(88,730)

322,583

Monetary claims bought

(158)

(80)

Money held in trust

792

(172)

316,528(481,068)

Domestic bonds

105,003

118,675

Domestic stocks(17,932)

39,877

Foreign securities

207,904(630,924)

Foreign bonds

112,867(629,047)

Foreign stocks and other securities

95,036(1,876)

21,552(8,697)(14,785)(29,112)

Policy loans(2,167)(1,541)

Ordinary loans(12,617)(27,571)

1,618

1,815

—

13,829Others

6,724

1,193

Allowance for possible loan losses

1,870

1,689

223,860(169,323)

207,787(826,729)

Securities

Other securities
Loans

Real estate
Deferred tax assets

Total
Foreign currency denominated assets

3

Fukoku Mutual Life Insurance Company

(3) Investment Income(Millions of yen)

Year ended March 31, 2022

Interest, dividends and other income

Year ended March 31, 2023

167,609

164,7682

3

140,247

136,893

Interest on loans

8,048

8,237

Income from real estate for rent

19,074

19,292Other interest and dividends

237

343

Gains on money held in trust, net

817—

Gains on trading securities, net

1,664

348

Gains on sales of securities

13,92054,756

Gains on sales of domestic bonds

6,543

7,576

Gains on sales of domestic stocks

3,932

16,946

Gains on sales of foreign securities

3,444

30,203

Other gains on sales of securities—

29

Gains on redemption of securities, net

65

11,702

Interest on deposits
Interest and dividends on securities

Foreign exchange gains, net

1,617

—

Reversal of allowance for possible loan losses

1,867

624

381

322

187,944

232,523

Other investment income
Total(4) Investment Expenses(Millions of yen)

Year ended March 31, 2022

Interest expenses

Year ended March 31, 2023

4,402

Losses on money held in trust, net

4,469

—

161

15,06046,169Losses on sales of domestic bonds

5,343

10,732Losses on sales of domestic stocks

7,414

339

Losses on sales of foreign securities

2,302

34,777

Other losses on sales of securities

—

319

344

3,608

Losses on valuation of domestic bonds—

593

Losses on valuation of domestic stocks

302

610

Losses on valuation of foreign securities

42

2,403

Losses on redemption of securities, net—

185

Losses on derivative instruments, net

7,746

11,221—8,231

Depreciation of real estate for rent and other assets

4,788

4,850

Other investment expenses

10,985

12,185

Total

43,32891,083Losses on sales of securities

Losses on valuation of securities

Foreign exchange losses, net(5) Net Investment Income(Millions of yen)

Year ended March 31, 2022

Net investment income

144,616

4

Year ended March 31, 2023

141,439

Fukoku Mutual Life Insurance Company

(6) Other Information on Investments(i) Investment Yield by Asset Categories( %)Year ended March 31, 2022

Year ended March 31, 2023

Cash, deposits, and call loans

0.00

0.00

Monetary claims bought

1.84(4.02)

Money held in trust

3.24(0.62)

Securities

2.50

2.46

Domestic bonds

1.73

1.43

Domestic stocks

3.18

8.48

Foreign securities

3.16

2.71

Foreign bonds

2.55

1.48

Foreign stocks and other securities

5.74

7.21

1.61

1.52

1.40

1.31

Real estate

2.91

2.53

Total

2.18

2.11

3.13

2.51

Loans
Ordinary loans

Overseas investments

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

(ii) Average Daily Balance(Millions of yen)

Year ended March 31, 2022

Year ended March 31, 2023

259,525

236,914223

34

25,27826,0695,309,118

5,394,128

Domestic bonds

2,722,369

2,964,735

Domestic stocks

418,905

413,423

Foreign securities

2,021,019

1,860,692

Foreign bonds

1,637,884

1,461,370

383,134

399,321567,015545,127

517,341

497,217242,645

242,567

6,642,474

6,708,497

2,381,764

2,141,945

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

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

5

Fukoku Mutual Life Insurance Company

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

As of March 31, 2022
As of March 31, 2023
Carrying value on the Net valuation gains/losses included Carrying value on the Net valuation gains/losses included
balance sheet
in the statement of operationsbalance sheet
in the statement of operations
Trading securities

43,5632,581

35,130(653)

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

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

As of March 31, 2022
Gains/Losses
Book value Fair value
Gains
760,097
847,316
87,21887,218

As of March 31, 2023
Gains/Losses
Book value Fair value
LossesGains—
738,300
808,660
70,36070,424Losses64

Domestic bonds

737,795

824,774

86,97986,979—738,300

808,660

70,36070,424Foreign bonds

22,302

22,541

238

238

—

—

—

—

—

64
—

Policy-reserve-matching bonds

—

—

—

—

—

—

—

—

—

—

Domestic bonds

—

—

—

—

—

—

—

—

—

—

Foreign bonds

—

—

—

—

—

—

—

—

—

—

Investments in subsidiaries and affiliates

—

—

—

—

—

—

—

—

—

—

Available-for-sale securities

4,625,982

5,288,571

662,589

733,325

70,736

4,307,988

4,839,472

531,484

676,027

144,543

Domestic bonds

2,038,626

2,146,685

108,059

138,789

30,7302,246,987

2,264,856

17,86899,271

81,402

Domestic stocks

347,574

699,525

351,951

354,992

3,041

352,575

739,891

387,316

389,227

1,911

Foreign securities

2,109,727

2,282,658

172,931

209,125

36,193

1,574,356

1,675,753

101,396

160,374

58,977

Foreign bonds

1,713,754

1,782,639

68,884102,110

33,225

1,169,512

1,184,154

14,642

68,36953,727

Foreign stocks and other securities

395,972

500,019

104,047

107,015

2,968

404,844491,598

86,75492,004

5,250

Other securities

130,053

159,700

29,64730,417770

134,069

158,971

24,902

27,153

2,251

Money held in trust

—

—

—

—

—

—

—

—

—

—

Monetary claims bought

—

—

—

—

—

—

—

—

—

—

Negotiable certificate of deposits

—

—

—

—

—

—

—

—

—

—

Others

—

—

—

—

—

—

—

—

—

—

Total

5,386,079

6,135,887

749,807820,544

70,736

5,046,289

5,648,133

601,844746,451

144,607

Domestic bonds

2,776,421

2,971,460

195,038

225,768

30,7302,985,287

3,073,516

88,228

169,695

81,466

Domestic stocks

347,574

699,525

351,951

354,992

3,041

352,575

739,891

387,316

389,227

1,911

Foreign securities

2,132,029

2,305,200

173,170

209,364

36,193

1,574,356

1,675,753

101,396

160,374

58,977

Foreign bonds

1,736,056

1,805,180

69,123102,349

33,225

1,169,512

1,184,154

14,642

68,36953,727

Foreign stocks and other securities

395,972

500,019

104,047

107,015

2,968

404,844491,598

86,75492,004

5,250

Other securities

130,053

159,700

29,64730,417770

134,069

158,971

24,902

27,153

2,251

Money held in trust

—

—

—

—

—

—

—

—

—

—

Monetary claims bought

—

—

—

—

—

—

—

—

—

—

Negotiable certificate of deposits

—

—

—

—

—

—

—

—

—

—

Others

—

—

—

—

—

—

—

—

—

—

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

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

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

As of March 31, 2022
64,78737,973
6,198

As of March 31, 2023
64,78736,051
5,709——

31,774
102,760

30,341
100,838

Note: In this table, domestic and overseas investment partnerships are included in “Others” within“Available-for-sale securities.” However, unrealized gains on available-for-sale securities
corresponding to these holdings by domestic and overseas investment partnerships (¥3,606
million as of March 31, 2022 and ¥3,616 million as of March 31, 2023) are included in theirbalance sheet carrying amounts.

6

Fukoku Mutual Life Insurance Company

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

As of March 31, 2022

Money held in trust

Carrying valueon the balance
sheet

Fair value

26,07026,070

As of March 31, 2023

Gains

LossesCarrying valueon the balance
sheet

—

—

25,897

Gains/Losses—

Fair value

25,897

Gains/Losses

—

Gains

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

As of March 31, 2022
Net valuation gains/losses
included in the statementsof operations

Carrying valueon the balance sheet

Money held in trust fortrading purpose

As of March 31, 2023

25,070Net valuation gains/losses
included in the statementsof operations

Carrying valueon the balance sheet

024,897(0)• Money held in trust classified as held-to-maturity, policy-reserve-matching and available-for-sale(Millions of yen)

As of March 31, 2022
Book value

Fair value

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

Money held in trust forpolicy-reserve-matching—

Money held in trust foravailable-for-sale—

As of March 31, 2023

Gains/Losses

Book value

Fair value

Gains

Losses

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

7

Gains/Losses
Gains

Losses

—

—

—

—

—

—

—

—

—

—

—

Fukoku Mutual Life Insurance Company

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

As of March 31, 2022

Interest-related Currency- related

Stock- related

Bond- related

OthersTotal(63,528)———

Hedge accounting applied—

Hedge accounting not applied20(4,632)

(202)

—

—

(4,814)

Total

20(68,160)

(202)

—

—

(68,342)Interest- related Currency- related

Stock- related

Bond- related

(840)

—

—

—

As of March 31, 2023

(63,528)

Others

Total

Hedge accounting applied

—

(840)

Hedge accounting not applied

47

(561)

(31)

(137)

—

(683)

Total

47

(1,402)

(31)

(137)

—

(1,524)

Note: Gains and losses from applying fair value hedge accounting (currency-related losses of ¥63,528 million as of March 31, 2022, andcurrency-related losses of ¥840 million as of March 31, 2023) included in gains and losses with hedge accounting applied, and gains andlosses with hedge accounting not applied are reported in the statements of operations.

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

As of March 31, 2022
Notional amount/contract value
Fair valueOver 1 year

Gains
(Losses)

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

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

—
[

[

—

— ]
—

Payment fixed, receipt floating

—
—

— [

—

— [

—

— ]
—

— ]

—
—

—

—

—

—

—

110

47

—

— ]

Bought—Receipt fixed, payment floating[
Payment fixed, receipt floating

—
—

— ]
150,000[—— [30,000— ]30,000

133 ]

154

Total

20 [
20

—

63 ]

—

47

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

8

Fukoku Mutual Life Insurance Company

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

As of March 31, 2022
Notional amount/contract value
Fair valueOver 1 year
Over-the-counter transactions
Currency forward contracts
Sold
U.S. dollar
Australian dollarEuro
Swedish krona
Canadian dollar
British pound

1,005,205
630,531
151,512110,689
33,58876,5392,343

BoughtCurrency options
Sold
Call
[
U.S. dollar[
Put[
BoughtCall[
Put[
U.S. dollar— 1,072,835—
668,660—
167,031—
116,852—
35,719—82,160
—
2,410

—

—

24,257
17 ]
24,257
17 ]
—
—]

—

—
—]
138,259
198 ]
138,259
198 ]

—

Gains
(Losses)

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

Gains
(Losses)(67,629)(38,129)(15,518)(6,163)(2,130)(5,621)(66)

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

—
—
—
—
—
—
—

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

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

—

—

—

—

—

—

(339) [

—
—]
—
—]
—
—]

—

356

—

—

—

—

—

—

—
—]
30,650475 ]
30,650
475 ]

—
—

—

118

(357)

—
356

(339) [

—
—

— [

—

— [

—
6

(191) [

—

—
—

—
—

[
6
(191) [
118
(357)
Total
(68,160)(1,402)
Notes:1. Forward exchange rates are used for exchange rates as of March 31, 2023.
Notes:2. Figures in [ ] are option premiums which are included in the balance sheet.
Notes:3. Regarding assets and liabilities which are denominated in foreign currencies but have fixed settlement in yen under currency forward
contracts and are reported in yen amounts in the balance sheet, those currency forward contracts are excluded from the table above.

(iv) Stock-related Transactions(Millions of yen)

As of March 31, 2022
Notional amount/contract value
Fair valueOver 1 year
Exchange-traded transactions
Stock index option
Sold
Call
[
Put
[
Bought
Call
[
Put

—
—]
—
—]

—

—
—]
35,100
210 ]

—

—

Gains
(Losses)

— [

—
—

— [

—

— [

—

[
9
Total
Note: Figures in [ ] are option premiums which are included in the balance sheet.

(202) [
(202)

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

—
—]
—
—]

—

—
—]
8,800
39 ]

—

Gains
(Losses)

—

—

—

—

—

—

8

(31)
(31)

—

—

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

As of March 31, 2022
Notional amount/contract value
Fair valueOver 1 year
Exchange-traded transactions
Yen-denominated bond futures
Sold
BoughtForeign currency-denominatedbond futures
Sold
BoughtTotal

Gains(Losses)

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

Gains
(Losses)

—
—

—
—

—
—

—
—

7,268
—

—
—

7,406
—

(137)
—

—
—

—
—

—
—

—
—
—

—
—

—
—

—
—

—
—
(137)

9

Fukoku Mutual Life Insurance Company

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

As of March 31, 2022
Carrying valueon the balance sheet

150,197

Fair value

297,512

As of March 31, 2023
Carrying valueon the balance sheet

Gains (Losses)

147,314

149,749

Fair value

Gains (Losses)

314,057

164,307

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

10

Fukoku Mutual Life Insurance Company

3. Non-consolidated Balance Sheets
As ofMarch 31,
2022

As of
March 31,2023

160,149

402,472

Assets:Cash and deposits:
Cash

Liabilities:
166

156

Bank deposits

159,983

402,315

Call loans

48,000130,000

80—

Monetary claims bought
Money held in trust(Millions of yen)
As of
As of
March 31,
March 31,
2022
2023

Policy reserves:

5,886,412

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

5,916,509

22,985

21,5235,800,015

5,830,565

63,41164,42087

46

26,07025,897

Subordinated bonds

241,935

241,935

Securities:

6,277,599

5,799,182

Other liabilities:

276,328204,041

Government bonds

2,102,521

2,395,965

Cash received as collateral under
securities lending transactions

160,928

155,483

Local government bonds

102,771

92,958

Corporate income tax payable

2,767

101

Corporate bonds

704,056

542,134

Accounts payable

7,282

6,324

Stocks795,801

836,501

Accrued expenses

11,438

10,580Foreign securities

2,388,284

1,756,176

Unearned income

419

437

Other securities

184,163

175,445

Deposits received

6,523

6,592

Loans:

553,305

524,193

Guarantee deposits received

13,97013,700

Policy loans

48,62947,088Derivatives

68,377

3,005

—

3,822

553

345

Ordinary loans

504,675

477,104

Cash collateral received for financial
instruments

Tangible fixed assets:

245,405

247,321

Lease obligations

Land

150,195

149,747

Asset retirement obligations

2,355

2,328

Buildings

89,20289,583

Suspense receipts

1,711

1,319

Lease assets
Construction in progress

265

928

Reserve for claims and other payments

3,400

—

1,767

3,649

Reserve for employees' retirement benefits

24,85025,951Other tangible fixed assets

3,974

3,412

Reserve for price fluctuation

176,670

177,188

Intangible fixed assets:

27,821

26,917

Deferred tax liabilities

25,061—

Software

19,914

24,148

Lease assets

498

311

7,407

2,456

Agency receivables

15

100

Foundation funds

12,00012,000

Reinsurance receivables

135

62

Accumulated foundation funds redeemed

116,000

116,000

Other assets:

52,32855,516

Reserve for revaluation

Accounts receivable

5,392

13,940Surplus:

Other intangible fixed assets

Deferred tax liabilities for land revaluation
Total liabilities

14,183

14,164

6,648,929

6,579,836

Net assets:

Prepaid expenses

3,202

4,281

Legal reserve for future losses

Accrued income

31,84029,089Other surplus:

Deposits

1,834

1,801

Differential account for futures trading—

147

Derivatives

35

112

112

127,222

126,981

3,370

3,463

123,852

123,518

Reserve for redemption of foundation
funds

4,800

7,200

Reserve for dividend allowances

20,00020,000

1,481

Accumulated fund for price fluctuation

41,00041,000Reserve for advanced depreciation of realestate for tax purpose

206

205

Other reserves

767

767

Cash collateral paid for financial
instruments

4,499

—

Suspense payments

1,871

1,621

Rest of the other asset

Unappropriated surplus

3,653

3,153

57,07854,346

Prepaid pension cost

912

1,614

Total foundation funds, surplus and others

255,334

255,093

Deferred tax assets—

13,829Net unrealized gains (losses) on availablefor-sale securities, net of tax

480,860

386,882(2,515)(826)

Allowance for possible loan losses

Total assets

7,389,308

7,226,280

11

Revaluation reserve for land, net of tax

4,184

4,468

Total valuation and translation adjustments

485,044391,350

Total net assets

740,379

646,4447,389,308

7,226,280

Total liabilities and net assets

Fukoku Mutual Life Insurance Company

4. Non-consolidated Statements of Operations
Year ended March 31, 2022

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

12

(Millions of yen)
Year ended March 31, 2023

486,461486,302158
194,336
167,6092
140,247
8,048
19,074
237
817
1,664
13,920
65
1,617
1,867
381
6,391
8,922
2,704
2,938
—
—
3,279
689,719

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

416,061
81,426
152,290
109,711
48,261
24,152
218
73,952
3,434
70,50413
43,328
4,402—
15,060
344
—
7,746
—
4,788
10,98590,77926,845
3,353
7,472
10,657
3,400
750
1,212
650,967
38,752504,790131,371
153,869
144,757
49,57925,008204
30,563—30,54913
91,083
4,469
161
46,1693,608
185
11,221
8,231
4,850
12,18590,47824,3803,618
7,546
11,388—399
1,426
741,296
32,512

10
10

393
393

430
46
3,873
4,349
34,412

178
32
518
730
32,175

11,069(9,975)
1,093
33,3193,096(1,793)1,303
30,872

Fukoku Mutual Life Insurance Company

Notes to the Non-consolidated Financial Statements
I. Presentation of the Non-consolidated Financial Statements
1. Basis of presentation
The accompanying non-consolidated financial statements have been prepared from the accounts maintained by Fukoku
Mutual Life Insurance Company (the “Company”) in accordance with the provisions set forth in the Insurance Business Act ofJapan and its related rules and regulations and in conformity with accounting principles generally accepted in Japan, which are
different in certain respects from accounting principles generally accepted in countries and jurisdictions other than Japan.
In addition, the notes to the non-consolidated financial statements include information which is not required underaccounting principles generally accepted in Japan but is presented herein as additional information.
Amounts of less than one million yen have been rounded down. As a result, the totals do not add up.

II. Notes to the Non-consolidated Balance Sheets
1. (1) The valuation of securities, including cash and deposits and monetary claims bought which are equivalent to securities, andsecurities managed as trust assets in money held in trust, is as follows:i) Trading securities are stated at fair market value. Costs of their sales are determined by the moving average method.
ii) Held-to-maturity debt securities are stated at amortized cost under the straight-line method, cost being determined by
the moving average method.
iii) Investments in subsidiaries and affiliates are stated at cost, cost being determined by the moving average method.
iv) Available-for-sale securities are stated at fair market value based on the market prices at the end of the fiscal year.
Costs of their sales are determined by the moving average method. Public and corporate bonds (including foreign
bonds) with differences between their acquisition costs and fair values that are considered as adjustments of interest
are stated at amortized cost (straight-line method) determined by the moving average method. However, stocks andother securities without quoted market prices are stated at cost, as determined using the moving average method. Net
unrealized gains or losses on these available-for-sale securities, net of taxes, are recorded as a separate component of
net assets.
(2) Derivative instruments are stated at fair market value.
(3) The Company revalued the land used in the operations based on the Act for Revaluation of Land (Act No.34 promulgatedon March 31, 1998). The difference between fair value and book value resulting from the revaluation, net of related taxes,
is recorded as revaluation reserve for land as a separate component of net assets and the related tax is recorded asdeferred tax liabilities for land revaluation.
• Date of revaluation: March 31, 2002
• Method of revaluation as prescribed for in Article 3 Paragraph 3 of the said Act:
Calculation is based on the appraisal value for property tax set forth in Article 2 item 3 of the Enforcement Ordinanceof the Act for Revaluation of Land (Government Ordinance No.119 promulgated on March 31, 1998) and the roadrate set forth in Article 2 item 4 of the said Ordinance with certain reasonable adjustments.
(4) Depreciation of tangible fixed assets is calculated by the following methods.
• Tangible fixed assets (excluding lease assets): Declining-balance method
However, buildings (excluding building attachments and structures acquired on or before March 31, 2016) acquiredon or after April 1, 1998 are depreciated using Straight-line method.
• Lease assets related to finance lease transactions that do not transfer ownership: Straight-line method over the leaseterm with no residual value.
Other tangible fixed assets acquired for ¥100,000 or more but less than ¥200,000 are depreciated equally overthree years.
13

Fukoku Mutual Life Insurance Company

(5) Assets and liabilities denominated in foreign currencies, except for investments in subsidiaries and affiliates, aretranslated into Japanese yen at the effective exchange rate prevailing at the balance sheet date. Investments in subsidiaries
and affiliates are translated into Japanese yen at the exchange rate on the date of acquisition.
(6) Allowance for possible loan losses is provided in accordance with the Company’s standards of self-assessment andwrite-offs and reserves on credit quality:i) For the credits of borrowers who are legally bankrupt such as being in the proceedings of bankruptcy or civil
rehabilitation (hereinafter called “legally bankrupt borrowers”) and who are substantially bankrupt (hereinafter
called “substantially bankrupt borrowers”), the Company provides the remaining amounts of credits after the direct
write-off described below and the deductions of the amount expected to be collected through the disposal ofcollateral or the execution of guarantees.
ii) For the credits of borrowers who are not currently bankrupt but have a high possibility of bankruptcy (hereinafter
called “not currently bankrupt borrowers”), the Company provides the amounts deemed as necessary considering theborrowers’ ability to pay, within the amounts after deductions of the amounts expected to be collected through thedisposal of collateral or the execution of guarantees.
iii) For the credits of borrowers other than the above, the Company provides the amounts calculated by multiplying theborrowers’ balance by the actual ratio of bad debt losses on defaults during a certain past period.
All credits are assessed by the relevant departments in accordance with the Company’s standards 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 is provided based on the
results of these assessments.
For the credits of legally bankrupt borrowers and substantially bankrupt borrowers, the amounts remaining after
deductions of collateral value or the amounts collectible through the execution of guarantees are written-off directly fromthe borrowers’ balances as the estimated uncollectible amounts. The amount written-off as of March 31, 2023 was ¥0
million.
(7) Reserve for employees' retirement benefits and prepaid pension cost are presented based on projected benefit obligations
and pension plan assets at the balance sheet date.
The Company uses the following methods for amortizing retirement benefit obligations and retirement benefit
expenses:• Method for allocation of projected retirement benefits ................

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

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

10 years(8) Reserve for price fluctuation is calculated in accordance with Article 115 of the Insurance Business Act.
(9) Hedge accounting is based on "Accounting Standards for Financial Instruments" (ASBJ Statement No. 10, July 4, 2019).
The Company applies a fair value hedge accounting as a hedge against the risk of foreign exchange fluctuation in relation
to bonds and others denominated in foreign currencies, and a designated hedge accounting (“Furiate shori”) for foreign
currency swaps as a hedge against the risk of foreign exchange fluctuation in relation to bonds denominated in foreign
currencies issued by the Company.
For assessing the effectiveness of hedge used, ratio analysis of comparing the fluctuations in the fair value or cash
flows of hedged items and hedging instruments is mainly applied.
(10) Accounting of unrecognized actuarial differences and unrecognized prior service costs related to employees’ retirement
benefits is different to the methods used for these items in the consolidated financial statements.

14

Fukoku Mutual Life Insurance Company

(11) The Company accounts for consumption taxes by the tax-exclusion method. The consumption taxes on certain assets,
which are not deductible from consumption taxes withheld and that are stipulated to be deferred under the Tax Act, aredeferred as prepaid expenses and amortized equally over five years. Consumption taxes other than deferred consumption
taxes are recognized as an expense when incurred.
(12) Initial premium incomes are recorded by the relevant amounts received when the premium incomes have been received
and the responsibilities on the insurance contract have been commenced, in principal.
Subsequent premium incomes are also recorded as the amount of payments that have been received.
Of premium incomes that have been received, the portion corresponding to the period that has yet to pass as of theend of the fiscal year is accumulated as policy reserve in accordance with Article 116 of the Insurance Business Act andArticle 69 Paragraph 1 Item 2 of the Enforcement Regulation of the Insurance Business Act.
Premium incomes associated with the acceptance of group annuities are recorded as amounts equivalent to thepolicy reserve received when accepting the transfers of these group annuities.
(13) Claims and other payments (excluding reinsurance premiums) are recorded by the relevant amounts paid when the cause
for payment under the policy conditions is occurred and the calculated amounts are paid based on the policy conditions.
In accordance with Article 117 of the Insurance Business Act and Article 72 of the Enforcement Regulation of the
Insurance Business Act, reserve for outstanding claims are accumulated as for claims for which the Company has apayment due but has not paid, or for which the occurrence of cause for payment has not been reported but the Company
recognizes that insured payment has already occurred as of the end of the fiscal year.
Regarding claims for which the occurrence of cause for payment has not been reported but the Company
recognizes that insured payment has already occurred (“IBNR reserves”), the scope of payment of hospitalization benefits
was changed in the fiscal year ended March 31, 2023, with respect to those diagnosed with COVID-19 and were under
the care of a doctor or the like at an lodging facility or at home (“deemed hospitalization”). As a result of this change, anappropriate amount of reserves cannot be obtained with the calculation method set forth in the main rules in Article 1,
Paragraph 1 of the Notification of the Minister of Finance No.234, 1998 (“IBNR Notification”). The Company therefore
records the amount that was calculated using the following method, pursuant to provisions in the proviso of Article 1,
Paragraph 1 of IBNR Notification (the “Proviso”).
(Overview of the calculation method)
The Company first deducts an amount pertaining to deemed hospitalization of policy holders other than those with highrisk of severity (“4 categories”) from a required amount of IBNR reserves and the amount of claim payments for all thefiscal years, as set forth in the main rules in Article 1, Paragraph 1 of IBNR Notification, and then calculates in the samemanner as in the main rules in Article 1, Paragraph 1 of IBNR Notification.
In addition, the amount pertaining to deemed hospitalization of the 4 categories which date of diagnosis required
for the above calculation is before September 25, 2022 is estimated by multiplying the amount for deemed hospitalization
for those 65 years of age or older whose diagnosis date is before September 25, 2022 by the ratio of the amount for thefour categories whose diagnosis date is on or after September 26, 2022 and the amount for the deemed hospitalization for
persons 65 years of age or older. However, the amount related to 4 categories deemed hospitalizations for co-insurance
follower policies is estimated based on the amount of payments for leader policies.
Claims and other payments associated with the outgoing transfer of group annuities are recorded as amounts
equivalent to the policy reserve transferred when recognizing the transfers of these group annuities.
(14) Policy reserve of the Company is accumulated in accordance with the methods stated in the statement of calculation
procedures for Insurance Premiums and Policy Reserves (Article 4 Paragraph 2 Item 4 of the Insurance Business Act)
pursuant to Article 116 Paragraph 1 of the Insurance Business Act to prepare for the future performance of obligations
under the insurance contracts for which the insurer’s responsibilities have started as of the end of the fiscal year.
Premium reserves, one of the components of policy reserve, are calculated by the following method.
15

Fukoku Mutual Life Insurance Company

i) In regard to the policies subject to the standard policy reserve, the method as prescribed by the Commissioner ofFinancial Services Agency (Ministry of Finance Ordinance No.48, 1996) is applied.
ii) In regard to the policies not subject to the standard policy reserve, the net level premium method is applied.
In regard to the policy reserve accumulated pursuant to Article 69 Paragraphs 1,2, and 4 of the Enforcement
Regulation of the Insurance Business Act, when the actual assumptions for long-term future cash flows (such as assumed
incidence rate and assumed interest rate) deviate from those assumptions set in the “statement of calculation proceduresfor Insurance Premiums and Policy Reserves” and policy reserve is considered to be possibly insufficient to cover the
future performance of obligations, additional policy reserve is required to accumulate in accordance with Article 69
Paragraph 5 of the Enforcement Regulation of the Insurance Business Act. The following reserves have been establishedin compliance with this regulation.
･ Among individual annuity insurance policies with an assumed interest rate of 5.00% or higher, for policies that havebegun paying annuities (excluding wife’s annuity insurance additional rider), the Company has reduced the assumed
interest rate to 1.00% and funded additional policy reserves. As of March 31, 2023, the balance of these policy reserves
was ¥71,649 million.
･ Among whole life insurance policies with assumed interest rates of 5.00% or higher following the fiscal year ended
March 31, 2023, the Company has reduced assumed interest rates for policies with premiums that have been paid infull (excluding policies that have been converted into paid-up or extended policies, single premium policies, andpolicies for which premiums have been waived) to 1.00% and funded additional policy reserves. As of March 31, 2023,
the balance of these policy reserves was ¥106,590 million.
･ The Company has also funded additional policy reserves for certain whole life insurance policies that include
distribution of surplus every five years, new cancer riders, highly advanced medical riders and transplant medical riders.
As of March 31, 2023, the balance of these policy reserves was ¥105 million.
Appointed actuary, for each fiscal year, verify whether policy reserves have been reasonably accumulated inaccordance with Article 121 Paragraph 1 of the Insurance Business Act and Article 80 of the Enforcement Regulation of
the Insurance Business Act.
Contingency reserves, one of the components of policy reserve, are accumulated pursuant to Article 116 of the
Insurance Business Act and Article 69 Paragraph 1 Item 3 of the Enforcement Regulation of the Insurance Business Act
to cover risks that may accrue in the future in order to ensure performing future obligations under the insurance contracts.
(15) Depreciation of intangible fixed assets is calculated by the following methods.
• Software: Straight-line method over the estimated useful lives.
• Lease assets related to finance lease transactions that do not transfer ownership: Straight-line method over the leaseterm with no residual value.

2. The Company began applying the “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ
Statement No. 31, June 17, 2021; hereinafter called “Implementation Guidance on Accounting Standard for Fair Value
Measurement”) from the beginning of the fiscal year. In accordance with the transitional treatments prescribed in Paragraph27-2 of the Implementation Guidance on Accounting Standard for Fair Value Measurement, new accounting policies set forth
by the Implementation Guidance on Accounting Standard for Fair Value Measurement will be applied prospectively. As aresult, certain investment trusts that had previously been carried on the balance sheet at acquisition cost are stated at fair valueon the balance sheet from the fiscal year ended March 31, 2023. The Company has observed no material impact from thisapplication of the Implementation Guidance on Accounting Standard for Fair Value Measurement.

16

Fukoku Mutual Life Insurance Company

3. Asset management of the general accounts other than the separate accounts stipulated in Article 118 Paragraph 1 of the
Insurance Business Act is conducted on the principle of prudent and profitable investments, considering public and social
responsibilities of the insurance business. Based on this policy, the Company allocates the fund, securing its liquidity, from themedium-to-long term viewpoints. The Company is diversifying investments in assets such as foreign securities, stocks and realestates within the acceptable range of risks in order to enhance the profitability, although yen-denominated interest bearing
assets including debt securities such as Japanese government bonds and loans are the cores of the portfolios under the asset
liability management. Derivatives are mainly used to hedge the market risk regarding spot-priced assets and liabilities.
Major financial instruments including securities, loans and derivatives are exposed to market risk and credit risk.
The Company manages its asset management risk by establishing internal control systems including various rules
pursuant to the “Three Basic Rules related to Enterprise Risk Management” established by the Board of Directors. Specifically,
the Company eliminates excessive risk deviating from the basic principle and secures the safety of the assets by utilizing
control functions of the Financial and Investment Risk Management Department towards the asset management sections,monitoring the status of market risk and credit risk periodically on a daily or monthly basis. In addition, the Company
quantifies the market risk and credit risk using value-at-risk (VaR) method in order to control the possible maximum losses
which may arise from the holding assets within a certain range of risk buffers.
The carrying amounts, fair values and their related differences of major financial assets and liabilities in the generalaccount as of March 31, 2023 were as follows:
Carrying amountMoney held in trust:
Trading securities.........................……………...................
Total money held in trust.....................................................
Securities:
Trading securities............................……………................
Held-to-maturity debt securities..........................................
Available-for-sale securities....................……………........
Total securities.......................................……………..........
Loans:
Policy loans............................................…………..…........
Ordinary loans.........................................…………….........
Total loans...............................................………….............
Assets total...............................................…………….......…......
Subordinated bonds*1............................……………...…..........
Liabilities total…..........................................……………....…....
Derivative instruments*2:
Hedge accounting not applied...........……….……..............
Hedge accounting applied……............................................
Total derivative instruments.........……………..................

Fair value(Millions of yen)
Difference¥24,897
24,897¥24,897
24,897¥——

10,232
738,300
4,839,472
5,588,005

10,232808,660
4,839,472
5,658,365—
70,360—70,36047,088477,104
524,193
6,137,096
241,935
241,935

47,088487,443534,532
6,217,795
238,498
238,498(0)
10,33910,33980,699(3,436)(3,436)

(683)
(840)
¥(1,524)

(683)
(840)
¥(1,524)——¥—*1 The fair value of derivative instruments that are currency swaps under designated hedge accounting is included in the fairvalue of subordinated bonds because it is accounted for as an integral part of the subordinated bonds that are the hedge items.
*2 Assets and liabilities generated by derivative instruments are offset and presented net. Net liabilities in total are presented inparentheses.
Notes: 1. Stocks without market prices, such as unlisted stocks, are not included in Securities of the above table.
The amount of these stocks on the balance sheet as of March 31, 2023 was ¥73,497 million.
Notes: 2. In accordance with Paragraph 24-16 of the Implementation Guidance on Accounting Standard for Fair Value
Measurement, investments in partnerships are not included in Securities of the above table.
The amount of investments in partnerships included on the balance sheet as of March 31, 2023, was ¥30,957 million.
Notes: 3. Investment trusts with real estate as investment trust properties which have applied Paragraph 24-9 of the Implementation
Guidance on Accounting Standard for Fair Value Measurement are included in Securities.

17

Fukoku Mutual Life Insurance Company

4. Matters concerning the breakdown of financial instruments by fair value level are as follows.
The fair values of financial instruments are classified into the following three levels according to the observability andmateriality of inputs used to measure fair value.
Fair Value Level 1: Fair values measured using (unadjusted) quoted prices in active markets for identical assets or liabilities
Fair Value Level 2: Fair values measured using directly or indirectly observable inputs other than Level 1 inputs
Fair Value Level 3: Fair values measured using material unobservable inputs
When multiple inputs with material impact are used to measure fair value, the resulting fair value is classified into the lowest
fair value level into which any of these inputs can be categorized.
(1) Financial assets and liabilities with fair values recorded on the balance sheet as of March 31, 2023
(Millions of yen)Classification
Money held in trust:
Trading securities........................…….....
Total money held in trust..........................
Securities:
Trading securities:
Foreign securities.................................
Total trading securities…………….…
Available-for-sale securities:
Government bonds……………….…...
Local government bonds………….….
Corporate bonds……………….….….
Stocks………………………………...
Foreign securities…………………….
Other securities………………………
Total available-for-sale securities……
Total securities........................…….....
Assets total.....................………………..........
Derivative instruments*:
Currency-related………………..............
Interest-related………………………….
Stock-related……………………............
Bond-related………………….…............
Total derivative instruments...….............

Fair value
Level 2

Level 1

Level 3

Total

¥—
—

¥24,897
24,897¥——¥24,897
24,897——

10,232
10,232——

10,232
10,232

1,665,641——
739,891595,331
40,683
3,041,547
3,041,547
3,041,547—
86,960512,254—
1,053,931
112,692
1,765,839
1,776,071
1,800,969————
26,490—26,49026,49026,4901,665,641
86,960512,254739,891
1,675,753
153,375
4,833,876
4,844,109
4,869,007

—
—
(31)
(137)
¥(169)(1,402)47——¥(1,355)

—
—
—
—
¥—

(1,402)
47
(31)
(137)
¥(1,524)* Assets and liabilities generated by derivative instruments are offset and presented net. Net liabilities in total are presented
in parentheses.
Note: Investment trusts with real estate as investment trust properties that have applied Paragraph 24-9 of the Implementation
Guidance on Accounting Standard for Fair Value Measurement are not included in the figures above. The amount of theinvestment trusts on the balance sheet as of March 31, 2023 was ¥5,596 million. Reconciliation of balances from the
beginning of the current fiscal year to balances as of March 31, 2023 for the investment trusts were as follows:(Millions of yen)

Balance at the beginning of the fiscal year………

¥3,654

Changes in net unrealized gains or losses…….

441

Purchase, sales, and redemption………………

1,500

Purchase…………….……………………….

1,500

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

¥5,59618

Fukoku Mutual Life Insurance Company

(2) Financial assets and liabilities with fair values not recorded on the balance sheet as of March 31, 2023
(Millions of yen)Classification
Securities:
Held-to-maturity debt securities:
Government bonds……………….…...
Local government bonds………..…….
Corporate bonds….…………….….….
Total held-to-maturity debt securities...
Total securities.............................…….
Loans:
Policy loans.................................….........
Ordinary loans..........................................
Total loans................................…............
Assets total.........................................…….......
Subordinated bonds
Liabilities total..........………………….….......

Fair value
Level 1

Level 2

Level 3

Total

780,191——
780,191
780,191—
7,357
21,11028,46828,468—————780,191
7,357
21,110808,660
808,660———
780,191—¥————
28,468238,498¥238,498

47,088487,443534,532
534,532—¥—

47,088487,443534,532
1,343,192
238,498¥238,498(3) Explanation of valuation techniques and inputs used to measure fair valuei) Securities (including deposits and monetary claims bought which are treated as securities based on “AccountingStandards for Financial Instruments” [ASBJ Statement No.10, July 4, 2019])
The fair values of securities for which unadjusted quoted market prices in active markets are available (primarily
listed stocks and government bonds [including some foreign securities]) are classified as Fair Value Level 1.
Meanwhile, the fair values of securities for which quoted market prices are available, but are not available in active
markets, are classified as Fair Value Level 2 (This category primarily includes local government bonds andcorporate bonds [including some foreign securities]). When quoted market prices are not available for securities,
prices obtained from third parties (mainly from information vendors and financial institutions with which theCompany conducts business) and determined to have been measured in accordance with prescribed accounting
standards are used to measure the fair values of these securities. If the inputs used to measure the fair value of agiven security are material but unobservable, the resulting fair value is classified as Fair Value Level 3.
ii) Money held in trust
In principle, the fair values of securities managed as trust assets and classifed as money held in trust are measured
using the Company's prescribed method for determining the value of securities. These fair values are categorized as
Fair Value Level 2.
iii) Loans
The fair values of policy loans are deemed to approximate book values, considering estimated repayment period andinterest rate conditions since their repayment deadlines have not been set up due to the characteristics that the loans
are limited to the amount of cash surrender values. Therefore, the book values are used as the fair values of policy
loans.
The fair values of floating interest rate loans among the ordinary loans approximate the book values because
the market interest rates are reflected in future cash flows in a short period. Therefore, the fair values of floatinginterest rate loans are based on their book values. The fair values of fixed interest rate loans are primarily measured
by discounting the future cash flows to the present values.
The fair values of loans from legally bankrupt borrowers, substantially bankrupt borrowers and not currently
bankrupt borrowers are computed by deducting the amount of the allowance for possible loan losses from the bookvalues before direct write-offs.
If the impact of unobservable inputs used to measure the fair values of loans is determined to be material, theresulting fair values are classified as Fair Value Level 3. Otherwise, they are categorized as Fair Value Level 2.
iv) Subordinated bonds
19

Fukoku Mutual Life Insurance Company

The fair values of corporate bonds issued by the Company are classified as Fair Value Level 2 and are measured
using the same method applied to securities.
v) Derivative instruments
The fair values of derivative instruments for which unadjusted quoted market prices in active markets are available(primarily exchange-traded futures and options) are classified as Fair Value Level 1. However, most derivative
instruments are traded over the counter and have no quoted market prices. Accordingly, prices obtained from third
parties (mainly from information vendors and financial institutions with which the Company conducts business) anddetermined to have been measured in accordance with prescribed accounting standards are used to measure the fairvalues of these derivative instruments. Fair values of derivative instruments that were measured using only
observable inputs or with unobservable inputs considered to be immaterial are classified as Fair Value Level 2.
Meanwhile, fair values of derivative instruments that have been measured using material unobservable inputs are
categorized as Fair Value Level 3.
(4) Information concerning fair values of financial assets and liabilities that have been recorded on the balance sheet as ofMarch 31, 2023 and classified as Fair Value Level 3i) Quantitative information regarding material unobservable inputs
When measuring fair value, the Company does not adjust quoted prices obtained from third parties and does notmake estimates related to inputs that it cannot observe. Accordingly, quantitative information regarding material
unobservable inputs have been omitted.
ii) Reconciliation of balances at the beginning of the current fiscal year and balances as of March 31, 2023, andvaluation gains or losses recognized in the statements of operations for the fiscal year ended March 31, 2023.
(Millions of yen)
Securities,
Available-for-sale securities,
Foreign securities

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

Total¥28,139(10)(10)(1,638)¥26,490¥28,139(10)(10)(1,638)¥26,490* These amounts are included in investment income and investment expenses in the non-consolidated
statements of operations for the fiscal year ended March 31, 2023.

iii) Explanation of the valuation process for fair value
The Company's asset management division is responsible for the formulation of policies and procedures related tothe measurement of fair value and the actual measurement of fair value. These fair values are subsequently checkedby the risk management department to ensure their appropriateness and compliance with relevant policies andprocedures.
The Company verifies the appropriateness of the fair values it measures using a variety of suitable methods,
which include comparing quoted market prices obtained from different third parties; confirming techniques andinputs utilized for calculation; and further comparing measured fair values with the fair values of similar financial
instruments.
iv) Explanation of the impact on fair value in case of change in material unobservable inputs
When measuring fair value, the Company does not adjust quoted prices obtained from third parties and does notmake estimates related to inputs that it cannot observe. Accordingly, it has omitted information concerning impact
on fair value stemming from changes in material unobservable inputs.

20

Fukoku Mutual Life Insurance Company

5. The Company holds investment and rental properties such as office buildings in Tokyo and other areas. The carrying amounts
and the fair values of investment and rental properties were ¥199,666 million and ¥351,564 million as of March 31, 2023,
respectively. The fair value is mainly based on the value calculated by the Company in accordance with real estate appraisal
standards which includes some adjustments using the reference prices.
The amount corresponding to asset retirement obligations included in the carrying amount of investment and rental
properties was ¥327 million as of March 31, 2023.

6. The amount of securities lent under lending agreements was ¥504,760 million as of March 31, 2023.

7. The total amount of claims against bankrupt and quasi-bankrupt obligors, claims with collection risk, delinquent loans past
three months or more, and restructured loans was ¥1,236 million as March 31, 2023. The details are as follows.
i) The balance of claims against bankrupt and quasi-bankrupt obligors was ¥130 million as of March 31, 2023.
Of which, the estimated uncollectible amount written-off was ¥0 million as of March 31, 2023.
Claims against bankrupt and quasi-bankrupt obligors are loans to borrowers who are subject to bankruptcy,
corporate reorganization or rehabilitation or other similar proceedings and other borrowers in serious financial difficulties.
ii) The balance of claims with collection risk was ¥544 million as of March 31, 2023.
Claims with collection risk are loans to obligors (other than bankrupt and quasi-bankrupt obligors) with deteriorated
financial condition and results of operations from which it is unlikely that the principal and interest on the loans will berecovered.
iii) There was no balance of delinquent loans past three months or more as of March 31, 2023.
Delinquent loans past three months or more are loans for which interest payments or repayments of principal aredelinquent for three months or more from the due date under the terms of the related loan agreements, excluding thoseloans classified as claims against bankrupt and quasi-bankrupt obligors, claims with collection risk.
iv) The balance of restructured loans was ¥561 million as of March 31, 2023.
Restructured loans are loans for which certain concessions favorable to borrowers, such as interest reduction or
exemption, rescheduling of due date for repayments of principal or interest payment, waiver of claim or other terms,
have been negotiated for the purpose of assisting and supporting the borrowers in the restructuring of their business.
This category excludes loans classified as claims against bankrupt and quasi-bankrupt obligors, claims with collection
risk, and delinquent loans past three months or more.

8. Accumulated depreciation of tangible fixed assets were ¥182,618 million as of March 31, 2023.

9. Total assets in separate accounts provided for in Article 118 of the Insurance Business Act were ¥118,783 million as of March
31, 2023. The amounts of separate account liabilities were the same as separate account assets.

10. The total amounts of receivables from/payables to subsidiaries were ¥2,405 million and ¥1,891 million as of March 31, 2023,
respectively.

11. Deferred tax assets and deferred tax liabilities as of March 31, 2023 were ¥172,319 million and ¥153,674 million, respectively.
Valuation allowance for deferred tax assets was ¥4,815 million.
Major components of deferred tax assets were ¥101,887 million of policy reserves, ¥49,612 million of reserve forprice fluctuation and ¥12,959 million of reserve for employees' retirement benefits as of March 31, 2023.
Major component of deferred tax liabilities was ¥148,218 million of net unrealized gains on available-for-salesecurities as of March 31, 2023.
21

Fukoku Mutual Life Insurance Company

The statutory tax rate and the actual effective tax rate for the year ended March 31, 2023 were 28.0% and 4.1%,
respectively. The difference between the statutory tax rate and the actual effective tax rate was attributable mainly to-24.4% of reserve for dividends to policyholders.

12. Changes in reserve for dividends to policyholders for the year ended March 31, 2023 were as follows:(Millions of yen)

¥63,41130,726(29,731)13¥64,420

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

13. The amount of stocks of subsidiaries was ¥64,787 million as of March 31, 2023.

14. Assets pledged as collateral as of March 31, 2023 were ¥175,557 million of securities.
Secured debts as of March 31, 2023, were ¥161,480 million.
These amounts include ¥147,552 million of investments in securities deposited and ¥155,483 million of cash received
as collateral under securities lending transactions secured by cash as of March 31, 2023.

15. Reserve for outstanding claims for the reinsurance contracts provided in accordance with Article 71 Paragraph 1 of the
Enforcement Regulation of the Insurance Business Act (hereinafter called “reserve for outstanding claims for ceded
reinsurance”) was ¥0 million as of March 31, 2023.
Policy reserve for the reinsurance contracts provided in accordance with Article 71 Paragraph 1 of the Enforcement
Regulation of the Insurance Business Act (hereinafter called “policy reserve for ceded reinsurance”) was ¥21 million as ofMarch 31, 2023.

16. The total amounts of adjustment items for redemption of foundation funds and appropriation of net surplus defined in Article
30 Paragraph 2 of the Enforcement Regulation of the Insurance Business Act was ¥391,462 million as of March 31, 2023.

17. There were unused commitment line agreements under which the Company is the lender of ¥8,604 million as of March
31, 2023.

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

19. Matters Related to Employees’ Retirement Benefits as of March 31, 2023
(1) Overview of Employees’ Retirement Benefit Plan
As for a defined benefit plan for office-based employees, the Company has a defined benefit corporate pension plan andretirement lump-sum payments. As for a defined contribution plan for these employees, the Company also has a defined
contribution pension plan.
As for a defined benefit plan for sales employees, the Company has retirement lump-sum payments.
The Company places a retirement benefit trust in relation to the retirement lump-sum grant plan for sales
employees.
The simplified method for calculating retirement benefit obligation is applied to a portion of the Company’s
retirement lump-sum grant plans.
22

Fukoku Mutual Life Insurance Company

(2) Defined Benefit Plani) Reconciliation of beginning and end of balance of retirement benefit obligation(Millions of yen)

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

¥90,644
3,639
542
(12)
(4,386)¥90,426ii) Reconciliation of beginning and end of balance of pension plan assets(Millions of yen)

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

¥63,886
1,232
2,410
1,075
(2,134)¥66,470iii) Reconciliation of retirement benefit obligation and pension plan assets with reserve for employees’
retirement benefits and prepaid pension cost presented on the non-consolidated balance sheet(Millions of yen)a. Funded plan retirement benefit obligation…………………………………
b. Pension plan assets……………………………….…………….…………..
c. (a + b)…………………………………………………………….………...
d. Unfunded plan retirement benefit obligation……………………………....
e. Unrecognized actuarial differences…………….……..…………………
f. Unrecognized prior service cost……………………………………..…..
g. Net amount of liabilities and assets presented
on the non-consolidated balance sheet………………………….………...

¥78,820(66,470)
12,34911,606421(40)

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

25,951(1,614)

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

¥24,337

24,337iv) Breakdown of retirement benefit gains and losses(Millions of yen)

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

¥3,639542(1,232)772
5Retirement benefit expenses related to defined benefit plan………….…..….

¥3,726v) Breakdown of pension plan assets
The breakdown of asset categories as a percentage of total pension plan assets were as follows:
Domestic stocks……………………………..………..….……………..……
Life insurance general account…………..….………………...……………..
Domestic bonds…………………….………………………………………...
Foreign stocks……………………………………………………..………....
Assets under joint management……………………………...…………..…..
Foreign bonds………………………………………………...…………..…..
Total……….…………………………………………………………….....…

23

45.1%
30.0%
9.4%
8.3%
3.7%
3.5%
100.0%

Fukoku Mutual Life Insurance Company

Within the total of pension assets, 38.3% of this amount is accounted for by the retirement benefit trust established inrelation to the retirement lump-sum payments plan for sales employees.
vi) Method for setting the expected long-term rate of return
To set the expected long-term rate of return on pension plan assets, the Company takes into account the present andfuture allocation of pension plan assets, and the present and expected future long-term rate of return on a variety ofassets that makes up the pension assets.
vii) Underlying actuarial assumptions
Main underlying actuarial assumptions as of March 31, 2023, were as follows:
Discount rate…………………………………..….….…………………..…
Expected long-term rate of return on pension plan assets
Defined Benefit Plan….…………………………………………………...
Retirement benefit trust…………………………………..……..………....

0.6%
3.0%
0.0%

(3) Defined Contribution Plan
The required contribution amount by the Company to the defined contribution plan was ¥219 million as ofMarch 31, 2023.

24

Fukoku Mutual Life Insurance Company

III. Notes to the Non-consolidated Statements of Operations
1. The total amounts of revenues and expenses in connection with subsidiaries were ¥1,804 million and ¥9,116 million for theyear ended March 31, 2023.

2. The details of gains on sales of securities for the year ended March 31, 2023 were as follows:(Millions of yen)Domestic bonds.................................................................................................
Domestic stocks and others...............................................................................
Foreign securities..............................................................................................
Other securities….……………………………………………………………

¥7,576
16,94630,203¥29

3. The details of losses on sales of securities for the year ended March 31, 2023 were as follows:(Millions of yen)Domestic bonds…………….............................................................................
Domestic stocks and others....................................................….......................
Foreign securities..............................................................................................
Other securities..………………………………………………………………

¥10,732
339
34,777¥319

4. The details of losses on valuation of securities for the year ended March 31, 2023 were as follows:(Millions of yen)Domestic bonds…………….............................................................................
Domestic stocks and others………..................................................................
Foreign securities.......................................................................…………......

¥593
610
¥2,403

5. For the year ended March 31, 2023, in calculating the reversal of reserve for outstanding claims, a reversal of reserve foroutstanding claims for ceded reinsurance of ¥0 million was deducted. In calculating the provision of policy reserves, a reversalof policy reserve for ceded reinsurance of ¥1 million was added.

6. The details of gains on trading securities for the year ended March 31, 2023 were as follows:(Millions of yen)Interest, dividends and other income…………………….................................

¥455

Losses on sales of trading securities………………..………….…….………..

2

Gains on redemption of trading securities……….……………….….………..

549

Losses on valuation of trading securities…………………..…….…..………..

¥653

7. Losses on money held in trust for the year ended March 31, 2023 included valuation losses of ¥0 million.

8. Losses on derivative instruments for the year ended March 31, 2023 included valuation gains of ¥4,130 million.

25

Fukoku Mutual Life Insurance Company

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

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

A

B
A+B

C
A+B+C

Year ended
March 31, 2022

Year ended
March 31, 2023

76,36924,143664
910
13,920
—
1,617
7,030
20,734——
15,060344
7,746—(2,417)
3,409
79,77876,780—74,413
777
1,589
117,807—————
117,807(41,026)
38,752

47,29776,986——54,756——22,23070,157299
106
46,1693,608
11,221
8,231
521
6,829
54,126
3,608
—
—
208
3,400
25,223—
12,430———12,792(21,614)32,512

Notes: 1. Fundamental profit and capital gains/losses for both the year ended March 31, 2022 and the year ended March 31, 2023 are
calculated based on revised standards.
Notes: 2. Other items break down as follows.

(Millions of yen)
Year ended
Year ended
March 31, 2022
March 31, 2023

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

26(8,540)153
753(2,417)(21,116)137
455(10,712)(2,773)521(4,256)
7,030—(11,517)
22,23010,712

2,773

—

4,256

—

—
(2,417)(2,417)

11,517
521
—

—

521

1,589

3,400

1,589

—

—
117,807

3,400
12,792

114,407

12,792

3,400—

Fukoku Mutual Life Insurance Company

6. Non-consolidated Statements of Changes in Net Assets[For the year ended March 31, 2022](Millions of yen)Foundation funds, surplus and others
Surplus
Other surplus

Foundation
funds

Balance at the beginning of the fiscal year

12,000

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

116,000

112

3,271

2,400

20,00041,000207

Total
surplus

Total foundation
funds, surplus
and others

59,102

126,748

254,860(32,744)(32,744)(32,744)

(99)

—

—

(102)

(102)

(102)

33,31933,31933,319(2,400)

—

—

1

—

—

1

1

1

Other
reserves

Unappropriatedsurplus

767

Changes in the fiscal year
Additions to reserve for dividends topolicyholders

99

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

2,400

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

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

—

—

—

99

2,400

—

—

(1)

—

(2,024)473

473

12,000116,000

112

3,370

4,800

20,00041,000206

767

57,078127,222

255,334

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

458,287

4,185

462,473

Total
net ssets

717,333

Changes in the fiscal year
Additions to reserve for dividends topolicyholders(32,744)

Additions to legal reserve for future losses—

Payment of interest on foundation funds(102)
33,319Net surplus for the fiscal year
Additions to reserve for redemption offoundation funds—

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

Reversal of revaluation reserve for land,
net of tax

1

Net changes, excluding foundation funds,
surplus and others

22,572(1)

22,571

22,571

Total changes in the fiscal year

22,572(1)

22,571

23,045

Balance at the end of the fiscal year

480,860

4,184

485,044740,379

27

Fukoku Mutual Life Insurance Company

[For the year ended March 31, 2023](Millions of yen)Foundation funds, surplus and others
Surplus
Other surplus

Foundation
funds

Balance at the beginning of the fiscal year

12,000

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

116,000

112

3,370

4,800

20,00041,000206

Total
surplus

Total foundation
funds, surplus
and others

Other
reserves

Unappropriatedsurplus767

57,078127,222

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

(93)

—

—

(102)

(102)

(102)

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

—

—

1

—

—

(284)

(284)

(284)

Changes in the fiscal year
Additions to reserve for dividends topolicyholders

93

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

2,400

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

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

—

—

—

93

2,400

—

—

(1)

—

(2,732)

(240)

(240)

12,000116,000

112

3,463

7,200

20,00041,000205

767

54,346

126,981

255,093

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

480,860

4,184

485,044

Total
net ssets

740,379

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

Additions to legal reserve for future losses—

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

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

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

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

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

Total changes in the fiscal year

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

Balance at the end of the fiscal year

386,882

4,468

391,350

646,444

28

Fukoku Mutual Life Insurance Company

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

Year ended March 31, 2022

Year ended March 31, 2023

57,07854,346

Reversal of voluntary surplus reserve11

Reversal of reserve for advanced depreciation of realestate for tax purpose

1

1

Total

57,07954,347

Appropriation of surplus

33,32130,589Reserve for dividends to policyholders

30,72628,002

Net surplus

2,595

2,587

Legal reserve for future losses

93

85

Interest payment for foundation funds

102

102

Voluntary surplus reserve

2,400

2,400

Reserve for redemption of foundation funds

2,400

2,400

23,75823,758Unappropriated surplus

Unappropriated surplus carried forward

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

29

Fukoku Mutual Life Insurance Company

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

As of March 31, 2022

Claims against bankrupt and quasi-bankrupt obligors

As of March 31, 2023

143

130

1,999

544

—

—

1,616

561

3,759
[0.32%]

1,236[0.12%]

Claims against normal obligors

1,175,569

1,032,163

Total

1,179,328

1,033,399

Claims with collection risk

Delinquent loans past three months or more
Restructured loans
Subtotal[Percentage of total]

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

30

Fukoku Mutual Life Insurance Company

9. Solvency Margin Ratio(Millions of yen)

As ofMarch 31, 2022

As ofMarch 31, 2023

1,917,896

1,836,582

Foundation funds and surplus

221,320

224,172

Reserve for price fluctuation

176,670

177,188

Contingency reserve

155,458

167,888820

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

599,576

481,590

Net unrealized gains on real estate × 85%

140,830

155,499

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

386,741

393,521

Qualifying subordinated debt

241,935

241,935——

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

Others41,327

41,164

310,783

323,968

Total solvency margin(A)

General allowance for possible loan losses

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

Total amount of risk

(B)√(𝑅1 + 𝑅8 )2 + (𝑅2 + 𝑅3 + 𝑅7 )2 + 𝑅4

Insurance risk

R1

21,81021,405

3rd sector insurance risk

R8

9,963

10,092

Assumed investment yield risk

R2

22,182

21,074

Minimum guarantee risk

R7

—

—

Investment risk

R3

280,252

294,386

Business risk

R4

6,684

6,939

1,234.2%

1,133.8%

Solvency margin ratio
(A)
× 100
(1/2) × (B)Notes: 1. Above figures are calculated based on the provisions of Articles 86 and 87 of the Enforcement Regulation of the Insurance BusinessAct and Ministry of Finance Notification No. 50, 1996.
Notes: 2. "Deductible items" represent the capital increase to the subsidiary, Fukokushinrai Life Insurance Co., Ltd.
Notes: 3. "Minimum guarantee risk" is calculated by standard method.

Reference: Economic Solvency Ratio

Economic Solvency Ratio

As ofMarch 31, 2022

As ofMarch 31, 2023

228.9%

233.8%

Note: Economic solvency ratio (ESR) is an indicator of an insurance company’s soundness and indicates whether or not a company has sufficient
capital to cover its risks based on market-value assessment of its assets and liabilities. The Company calculates its ESR according toEuropean methodology. Figures for some insurance liabilities and risks current as of March 31, 2023 have been calculated using simplified
methods.

31

Fukoku Mutual Life Insurance Company

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

As of March 31, 2022

As of March 31, 2023

AmountAmountIndividual variable insurance——

Individual variable annuities

25—

Group annuities

112,462

118,783

Total

112,487

118,783(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, 2022
Number ofpolicies

As of March 31, 2023

AmountNumber ofpolicies

AmountIndividual variable annuities

7

18

—

—

Total

7

18

—

—

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

As of March 31, 2022
AmountAs of March 31, 2023

Percentage

AmountPercentage

Cash, deposits, call loans

4

18.3%

—

—

Securities

20

81.7

—

—

Domestic bonds

—

—

—

—

Domestic stocks

—

—

—

—

Foreign securities

—

—

—

—

Foreign bonds

—

—

—

—

Foreign stocks and other securities

—

—

—

—

20

81.7

—

—

Loans

—

—

—

—

Others————Allowance for possible loan losses

—

—

—

—

Total

25

100.0

—

—

Other securities

32

Fukoku Mutual Life Insurance Company

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

Year ended March 31, 2022

Year ended March 31, 2023

AmountAmountInterest, dividends and other income

08Gains on sales of securities——

Gains on redemption of securities——

Gains on valuation of securities

8—

Foreign exchange gains, net——

Gains on derivative instruments——

Other investment income——

Losses on sales of securities——

Losses on redemption of securities——

Losses on valuation of securities

98Foreign exchange losses, net——

Losses on derivative instruments——

Other investment expenses——

Net investment income

0(0)(iv) Fair Value Information on Securities in Separate Account for Individual Variable Annuities• Net Valuation Gains/Losses on Trading Securities(Millions of yen)

As of March 31, 2022

As of March 31, 2023

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

Trading securities

20

(0)

—

(8)

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

33

Fukoku Mutual Life Insurance Company

Reference: Fair Value Information on Securities (Total of General Account and Separate Account)
Net Valuation Gains/Losses on Trading Securities(Millions of yen)
As of March 31, 2022
Carrying value on thebalance sheet
Trading securities

As of March 31, 2023

Net valuation gains/losses includedin the statement of operations

147,633

Carrying value on thebalance sheet

Net valuation gains/losses includedin the statement of operations

141,851(3,015)

4,388

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

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

As of March 31, 2022

As of March 31, 2023

Gains/Losses

Book value Fair value

Gains

Held-to-maturity debt securities

760,097

847,316

87,21887,218Domestic bonds

737,795

824,774

86,979Foreign bonds

22,302

22,541

Policy-reserve-matching bonds—

Domestic bonds—

Foreign bonds
Investments in subsidiaries and affiliates

Book value Fair value

LossesGains/Losses
Gains

Losses738,300

808,660

70,36070,424

86,979——738,300

808,660

70,36070,424

64
64

238

238

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

Available-for-sale securities

4,625,982

5,288,571

662,589

733,325

70,736

4,307,988

4,839,472

531,484

676,027

144,543

Domestic bonds

2,038,626

2,146,685

108,059

138,789

30,7302,246,987

2,264,856

17,86899,271

81,402

Domestic stocks

347,574

699,525

351,951

354,992

3,041

352,575

739,891

387,316

389,227

1,911

Foreign securities

2,109,727

2,282,658

172,931

209,125

36,193

1,574,356

1,675,753

101,396

160,374

58,977

Foreign bonds

1,713,754

1,782,639

68,884102,110

33,225

1,169,512

1,184,154

14,642

68,36953,727

Foreign stocks and other securities

395,972

500,019

104,047

107,015

2,968

404,844491,598

86,75492,004

5,250

Other securities

130,053

159,700

29,64730,417770

134,069

158,971

24,902

27,153

2,251

Money held in trust

—

—

—

—

—

—

—

—

—

—

Monetary claims bought

—

—

—

—

—

—

—

—

—

—

Negotiable certificate of deposits

—

—

—

—

—

—

—

—

—

—

Others

—

—

—

—

—

—

—

—

—

—

Total

5,386,079

6,135,887

749,807820,544

70,736

5,046,289

5,648,133

601,844746,451

144,607

Domestic bonds

2,776,421

2,971,460

195,038

225,768

30,7302,985,287

3,073,516

88,228

169,695

81,466

Domestic stocks

347,574

699,525

351,951

354,992

3,041

352,575

739,891

387,316

389,227

1,911

Foreign securities

2,132,029

2,305,200

173,170

209,364

36,193

1,574,356

1,675,753

101,396

160,374

58,977

Foreign bonds

1,736,056

1,805,180

69,123102,349

33,225

1,169,512

1,184,154

14,642

68,36953,727

Foreign stocks and other securities

395,972

500,019

104,047

107,015

2,968

404,844491,598

86,75492,004

5,250

Other securities

130,053

159,700

29,64730,417770

134,069

158,971

24,902

27,153

2,251

Money held in trust

—

—

—

—

—

—

—

—

—

—

Monetary claims bought

—

—

—

—

—

—

—

—

—

—

Negotiable certificate of deposits

—

—

—

—

—

—

—

—

—

—

Others

—

—

—

—

—

—

—

—

—

—

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

[Held-to-maturity Debt Securities]
As of March 31, 2022
Carrying value on
the balance sheet
Securities whose fair value exceeds the carrying valueon the balance sheet

Fair value

Differences(Millions of yen)
As of March 31, 2023
Carrying value on
Fair value
Differences
the balance sheet

760,097

847,316

87,218724,956

795,381

70,424

Domestic bonds

737,795

824,774

86,979724,956

795,381

70,424Foreign bonds

22,302

22,541

238

—

—

—

—

—

—

13,343

13,279(64)

Domestic bonds

—

—

—

13,343

13,279(64)

Foreign bonds

—

—

—

—

—

—

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

34

Fukoku Mutual Life Insurance Company

[Policy-reserve-matching Bonds](Millions of yen)
As of March 31, 2022
Carrying value on
the balance sheet

As of March 31, 2023

Fair value

Differences

—

—

—

—

—

—

—

—

Domestic bonds
Foreign bonds

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

Carrying value on
the balance sheet

Fair value

Differences

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

[Available-for-sale Securities](Millions of yen)
As of March 31, 2022

As of March 31, 2023

Book value

Carrying value on
the balance sheet

Differences

Book value

Carrying value on
the balance sheet

Differences

3,271,278

4,004,603

733,325

2,457,857

3,133,885

676,027

Domestic bonds

1,411,343

1,550,132

138,789

1,062,280

1,161,552

99,271

Domestic stocks

310,630

665,623354,992

334,225

723,453389,227

Foreign securities

1,443,319

1,652,444

209,125

962,168

1,122,543

160,374

Foreign bonds

1,091,898

1,194,009

102,110635,502703,872

68,369Foreign stocks

351,420

458,435

107,015

326,665

418,670

92,004

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

Other securities

105,985

136,40230,417

99,183

126,337

27,153

Money held in trust

—

—

—

—

—

—

Monetary claims bought

—

—

—

—

—

—

Negotiable certificate of deposits

—

—

—

—

—

—

Others

—

—

—

—

—

—

1,354,704

1,283,967(70,736)

1,850,130

1,705,587(144,543)

Domestic bonds

627,283

596,553(30,730)

1,184,706

1,103,304(81,402)

Domestic stocks

36,94333,902(3,041)

18,34916,438(1,911)

Foreign securities

666,408630,214(36,193)

612,188553,210(58,977)

Foreign bonds

621,855

588,629(33,225)534,009480,282(53,727)

Foreign stocks

44,552

41,584(2,968)78,17872,928(5,250)24,06823,297(770)

34,88532,634(2,251)

Money held in trust

—

—

—

—

—

—

Monetary claims bought

—

—

—

—

—

—

Negotiable certificate of deposits

—

—

—

—

—

—

Others

—

—

—

—

—

—

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

Other securities• Book value of securities and investment partnerships without fair value are as follows:(Millions of yen)
As of March 31, 2022

As of March 31, 2023

Investments in subsidiaries and affiliates

64,78764,787Available-for-sale securities

37,97336,051

Domestic stocks

6,198

5,709

Foreign stocks——

31,77430,341

102,760

100,838

OthersTotal

Note: In this table, domestic and overseas investment partnerships are included in “Others” within“Available-for-sale securities.” However, unrealized gains on available-for-sale securities
corresponding to these holdings by domestic and overseas investment partnerships (¥3,606
million as of March 31, 2022 and ¥3,616 million as of March 31, 2023) are included in theirbalance sheet carrying amounts.

35

Fukoku Mutual Life Insurance Company

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

Currency- related

Stock- related

Bond- related

OthersHedge accounting applied—(63,528)———(63,528)

Hedge accounting not applied20(4,632)

(202)

—

—

(4,814)

Total

20(68,160)

(202)

—

—

(68,342)Interest- related

Currency- related

Stock- related

Bond- related

OthersHedge accounting applied

—

(840)

—

—

—

(840)

Hedge accounting not applied

47

(561)

(31)

(137)

—

(683)

Total

47

(1,402)

(31)

(137)

—

(1,524)As of March 31, 2022

As of March 31, 2023

Total

Total

Note: Gains and losses from applying fair value hedge accounting (currency-related losses of ¥63,528 million as of March 31, 2022, andcurrency-related losses of ¥840 million as of March 31, 2023) included in gains and losses with hedge accounting applied, and gains andlosses with hedge accounting not applied are reported in the statements of operations.

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

As of March 31, 2022
Notional amount/
Fair value
contract valueOver 1 year

Gains
(Losses)

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

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

Payment fixed, receipt floating

— ]
—

[

—

—
—

— [

—

— ]

— ]
—

—

— [

—
—

—

—

—

—

—

110

47

—

— ]

BoughtReceipt fixed, payment floating—[

Payment fixed, receipt floating— ]150,000

[

—

—
—

— [

30,000133 ]— ]30,000

154

Total

20 [
20

—

63 ]

—

47

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

36

Fukoku Mutual Life Insurance Company

[Currency-related Transactions](Millions of yen)

As of March 31, 2022
Notional amount/contract value
Fair valueOver 1 year
Over-the-counter transactions
Currency forward contracts
Sold
U.S. dollar
Australian dollar
Canadian dollar
Euro

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

Gains
(Losses)

Gains(Losses)

60,73940,866
5,530
12,759
1,583

—
—
—
—
—

64,841
43,505
5,993
13,700
1,642(4,101)(2,639)
(463)
(941)
(58)

46,03629,035
11,171
5,829
—

—
—
—
—
—

46,24029,202
11,131
5,906
—

(204)
(166)
40
(77)
—

—

—

—

—

—

—

—

—

—

—

356

(339) [——[

24,257
17 ]
24,257
17 ]

—

—

—
— ]

—

[

—

—

—
— ]
138,259
198 ]
138,259
198 ]

—

—

—

118

(357)

118

(357)
(561)

BoughtCurrency options
Sold
Call
[
U.S. dollar
Put
BoughtCall[
Put[
U.S. dollar[

356(339) [

—
— ]
—
— ]

—

[

—
— ]

—

—

—

[

—
— ]
30,650475 ]
30,650
475 ]

—

—

—

—
6

(191) [

—
6

Total

(191) [
(4,632)———

Notes: 1. Forward exchange rates are used for exchange rates as of March 31, 2023.
Notes: 2. Figures in [ ] are option premiums which are included in the balance sheet.

[Stock-related Transactions](Millions of yen)

As of March 31, 2022
Notional amount/contract value
Fair valueOver 1 year
Exchange-traded transactions
Stock index options
Sold
Call
[
Put
[
Bought
Call
[
Put
[

—
— ]
—
— ]

—

—
— ]
35,100210 ]——As of March 31, 2023
Notional amount/
Fair value
contract valueOver 1 year

Gains
(Losses)

—

[

—
—

—

[

—

—

[

—
9

Total

(202) [
(202)

—
— ]
—
— ]

—

—
— ]
8,800
39 ]

—

Gains
(Losses)

—

—

—

—

—

—

8

(31)
(31)

—

—

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

[Bond-related Transactions](Millions of yen)

As of March 31, 2022
Notional amount/contract value
Fair valueOver 1 year
Exchange-traded transactions
Yen-denominated bond futures
Sold
BoughtForeign currency-denominatedbond futures
Sold
BoughtTotal

Gains(Losses)

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

Gains
(Losses)

—
—

—
—

—
—

—
—

7,268
—

—
—

7,406
—

(137)
—

—
—

—
—

—
—

—
—
—

—
—

—
—

—
—

—
—
(137)

37

Fukoku Mutual Life Insurance Company

(iii) Hedge Accounting Applied[Interest-related Transactions]
No ending balance as of March 31, 2022 and March 31, 2023.
[Currency-related Transactions](Millions of yen)

Method ofhedge
accounting

Hedging instruments
Currency forward contracts
Sold
U.S. dollar

Fair value
hedge
methodAustralian dollar

As of March 31, 2022
As of March 31, 2023
Notional amount/
Notional amount/contract value
contract value
Fair value
Fair value Hedged items
Hedged items
Over 1 year
Over 1 year
Foreign
Foreigncurrency944,465
191,105— 1,007,994 currency— 191,946
denominateddenominated589,665
111,539— 625,155— 112,485
bonds
bonds
145,982
53,68452,860— 161,038—

Euro

109,105—

115,210

14,743—

15,102

Swedish krona

33,588—35,719

8,758

—

9,020

British pound

2,343

—

2,410

2,379

—

2,477

Canadian dollar

63,779—68,460

—

—

—

—

—

—

—

—

—

BoughtTotal

Notes:1. Forward exchange rates are used for exchange rates as of March 31, 2023.
Notes:2. Regarding assets and liabilities which are denominated in foreign currencies but have fixed settlement in yen under currency
forward contracts and are reported in yen amounts in the balance sheet, those currency forward contracts are excluded from thetable above.

[Stock-related Transactions]
No ending balance as of March 31, 2022 and March 31, 2023.
[Bond-related Transactions]
No ending balance as of March 31, 2022 and March 31, 2023.

38

Fukoku Mutual Life Insurance Company

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

Year ended
March 31, 2022

Year ended
March 31, 2023

Ordinary revenues

8,578

10,286

Ordinary profits

405

344

Net surplus attributable to the parent company

339

316

Comprehensive income

565

(624)

Total assets
Solvency margin ratio

As of March 31, 2022

As of March 31, 2023

89,86988,837

1,274.3%

1,171.9%(2) Scope of Consolidation and Application of Equity Method
Number of consolidated subsidiaries: 6
Number of unconsolidated subsidiaries accounted for under the equity method: 0
Number of affiliates accounted for under the equity method: 0

39

Fukoku Mutual Life Insurance Company

(3) Consolidated Balance Sheets(Millions of yen)
As of
As of
March 31, 2022 March 31, 2023

Assets:

As of
As of
March 31, 2022 March 31, 2023

Liabilities:

Cash and deposits

323,128

524,841

Policy reserves:

7,447,853

7,540,406

Call loans

48,000130,000

Reserve for outstanding claims

27,71926,32680—

7,356,399

7,449,355

26,07025,897

Reserve for dividends topolicyholders

63,41164,4207,697,988

7,321,344

Reserve for dividends topolicyholders (subsidiary)

322

304

Loans

556,577

527,561

Agency payables

165

461

Tangible fixed assets:

245,765

247,723

Reinsurance payables

104

60

Land

150,195

149,747

Subordinated bonds

241,935

241,935

Buildings

89,37989,751Other liabilities

281,058

208,704

Lease assets

298

991

Reserve for claims and otherpayments

3,432—

Construction in progress

1,767

3,649

Net defined benefit liabilities

27,67725,220

Other tangible fixed assets

4,125

3,583

Reserve for price fluctuation

187,692

188,538

Intangible fixed assets:

30,60928,690

Deferred tax liabilities

25,1880Software

19,65723,558Deferred tax liabilities for land
revaluation

14,183

14,164

Lease assets

3,486

2,635

Total liabilities

8,229,290

8,219,491

Other intangible fixed assets

7,466

2,497

Net assets:00Foundation funds

12,00012,000175

83

Accumulated foundation funds
redeemed

116,000

116,000

58,39761,085Reserve for revaluation

112

112

822

1,184

Consolidated surplus

132,765

133,303

Deferred tax assets

1,831

16,131

260,877

261,415

Allowance for possible loan losses(2,516)(826)

486,644

390,148

Revaluation reserve for land,
net of tax

4,184

4,468

Foreign currency translation
adjustment

(312)

(58)

Accumulated remeasurementsof defined benefit plans(2,030)274

Total accumulated othercomprehensive income

488,486

394,833

Non-controlling interests

8,276

7,977

757,640664,226

8,986,931

8,883,718

Monetary claims bought
Money held in trust
Securities

Agency receivables
Reinsurance receivables
Other assets
Net defined benefit assets

Policy reserve

Total foundation funds, surplus
and others
Net unrealized gains (losses) on
available- for-sale securities,
net of tax

Total net assets
Total assets

8,986,931

8,883,718

40

Total liabilities and net assets

Fukoku Mutual Life Insurance Company

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

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

41

Year ended
March 31, 2022

Year ended
March 31, 2023

632,055
215,080
185,514817
1,664
16,760
65
1,616
1,867
381
6,391
10,762857,898

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

613,582
91,523309,762
116,426
71,221
24,64829,147
4,006
25,12713
041,9104,417—
15,060
344
—
7,746
—
4,788
9,553
99,60733,132
817,379
40,519679,967
144,133
288,512150,00271,84525,473
92,970—92,95613
090,607
4,479
161
46,995
3,608
185
11,2218,235
4,850
10,868101,175
29,486994,20734,415

11
11

393
393

431
46
4,171
4,650
195
35,685

182
32
845
1,060
173
33,574

11,945(10,247)
1,698
33,98674
33,911

4,008(2,191)
1,816
31,757106
31,650

Fukoku Mutual Life Insurance Company

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

Year ended
March 31, 2022

Year ended
March 31, 2023

Net surplus

33,98631,757

Other comprehensive income:

22,514(94,229)

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

20,581(96,789)

259

254

Remeasurements of defined benefit plan, net of tax

1,673

2,305

Comprehensive income:

56,500(62,472)

Comprehensive income attributable to the parent company

56,633(62,286)

(132)

(186)

Foreign currency translation adjustments

Comprehensive income attributable to non-controlling interests

42

Fukoku Mutual Life Insurance Company

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

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

43

Year ended
March 31, 2022

Year ended
March 31, 2023

35,685
4,788
14,52946
4,006
25,12713
0
195(1,870)
3,432
755
4,171
(185,514)(2,548)4,417(1,616)
386
0
(5)
2,589
53
0
2,185
17,933(71,236)
182,614(4,388)(32,580)(181)(11,931)
62,29633,5744,850
13,72032(1,392)
92,95613
0
173(1,689)(3,432)382
845(182,754)(7,817)
4,479
8,235
(218)
(0)
92
(5,974)295(43)(1,548)20,590(24,627)
185,806(4,450)(29,731)(192)(6,640)120,164

2,003
158(2,310)2,310(768,599)
618,119(78,096)
86,729(76,466)
99,108(8,672)(125,716)(63,420)(9,512)
109(11,808)(146,928)(9,767)77——(983,240)
1,307,916(75,769)
96,953(146,423)(5,445)(9,853)
174,447
294,611(8,976)
1,036(8,863)
157,643

(102)
(159)
(3,710)(3,972)(219)(88,823)455,823
366,999

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

Fukoku Mutual Life Insurance Company

(6) Consolidated Statements of Changes in Net Assets[For the year ended March 31, 2022](Millions of yen)Foundation funds, surplus and others
Reserve forrevaluation

Consolidated
surplus

Total foundation
funds, surplus andothers112

131,699

259,811Additions to reserve for dividends topolicyholders(32,744)(32,744)

Payment of interest on foundation funds

(102)

(102)

33,911

33,911

1

1

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

12,000116,000

Changes in the fiscal year

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

—

—

—

1,066

1,066

12,000116,000

112

132,765

260,877

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

465,855

4,185

(571)

(3,703)465,7658,568

734,145

Changes in the fiscal year
Additions to reserve for dividends topolicyholders(32,744)

Payment of interest on foundation funds(102)

Net surplus attributable to the parent
company for the fiscal year

33,911

Reversal of revaluation reserve forland, net of tax

1

Net changes, excluding foundation
funds, surplus and others

20,789

(1)

259

1,673

22,720(292)

22,428

Total changes in the fiscal year

20,789

(1)

259

1,673

22,720(292)

23,494

Balance at the end of the fiscal year

486,644

4,184

(312)

(2,030)488,486

8,276

757,640

44

Fukoku Mutual Life Insurance Company

[For the year ended March 31, 2023](Millions of yen)Foundation funds, surplus and others
Reserve forrevaluation

Consolidated
surplus

Total foundation
funds, surplus andothers112

132,765

260,877

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

Payment of interest on foundation funds

(102)

(102)

Net surplus attributable to the parent
company for the fiscal year

31,65031,650

Reversal of revaluation reserve forland, net of tax

(284)

(284)

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

12,000116,000

Changes in the fiscal year

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

—

—

—

537

537

12,000116,000

112

133,303

261,415

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

486,644

4,184

(312)

(2,030)488,486

8,276

757,640

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

Payment of interest on foundation funds(102)

Net surplus attributable to the parent
company for the fiscal year

31,650

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

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

284

254

2,305

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

Total changes in the fiscal year

(96,496)

284

254

2,305

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

Balance at the end of the fiscal year

390,148

4,468

(58)

274

394,833

7,977

664,226

45

Fukoku Mutual Life Insurance Company

Notes to the Consolidated Financial Statements
I. Presentation of the Consolidated Financial Statements
1. Basis of Presentation
The accompanying consolidated financial statements have been prepared from the accounts maintained by Fukoku MutualLife Insurance Company (the “Company”) and its consolidated subsidiaries in accordance with the provisions set forth in the
Insurance Business Act of Japan and its related rules and regulations and in conformity with accounting principles generally
accepted in Japan, which are different in certain respects from accounting principles generally accepted in countries andjurisdictions other than Japan.
In addition, the notes to the consolidated financial statements include information which is not required underaccounting principles generally accepted in Japan but is presented herein as additional information.
Amounts of less than one million yen have been rounded down. As a result, the totals do not add up.

2. Principles of Consolidation(1) Scope of Consolidation
Consolidated subsidiaries as of March 31, 2023 are listed below:
Fukoku Capital Management, Inc.
Fukokushinrai Life Insurance Co., Ltd.
Fukoku Information Systems Co., Ltd.
Fukoku Life International (U.K.) Ltd.
Fukoku Life International (America) Inc.
Fukoku Life Investments Singapore Pte. Ltd.
Major unconsolidated subsidiary is Fukoku Business Service Company Limited.
Four subsidiaries are excluded from the scope of consolidation, as each one of them is small in its total assets,
amount of sales, net surplus for the period and surplus and are sufficiently insignificant to reasonable judgement on theirimpact on the financial position and results of operation of the Company's group.
(2) Application of Equity Method
Unconsolidated subsidiaries (such as Fukoku Business Service Company Limited, etc.) are insignificant in their impact
on net surplus attributable to the parent company and consolidated surplus, and also immaterial as a whole, therefore,
application of equity method is not applied.
There are no affiliates for the year ended March 31, 2023.
(3) Fiscal Year of Consolidated Subsidiaries
Among the subsidiaries to be consolidated, fiscal year-end of overseas subsidiaries is December 31. For the preparationof consolidated financial statements, financial statements as of that date are used and concerning any importanttransaction taking place in between December 31 and the consolidated closing date, necessary adjustments forconsolidation are made.

46

Fukoku Mutual Life Insurance Company

II. Notes to the Consolidated Balance Sheets
1. (1) The valuation of securities, including cash and deposits and monetary claims bought which are equivalent to securities,
and securities managed as trust assets in money held in trust, is as follows:i) Trading securities are stated at fair market value. Costs of their sales are determined by the moving averagemethod.
ii) Held-to-maturity debt securities are stated at amortized cost under the straight-line method, cost being
determined by the moving average method.
iii) Policy-reserve-matching bonds are stated at amortized cost under the straight-line method, cost being determined by
the moving average method in accordance with “Temporary Treatment of Accounting and Auditing Concerning
Policy-reserve-matching Bonds in the Insurance Industry” (Industry Audit Committee Report No.21 issued by theJapanese Institute of Certified Public Accountants on November 16, 2000).
iv) Investments in unconsolidated subsidiaries and affiliates which are not accounted for under the equity
method are stated at cost, cost being determined by the moving average method.
v) Available-for-sale securities are stated at fair market value based on the market prices at the end of the
fiscal year. Costs of their sales are determined by the moving average method. Public and corporate bonds(including foreign bonds) with differences between their acquisition costs and fair values that areconsidered as adjustments of interest are stated at amortized cost (straight-line method) determined by themoving average method. However, stocks and other securities without quoted market prices are stated atcost, as determined using the moving average method. Net unrealized gains or losses on theseavailable-for-sale securities, net of taxes, are recorded as a separate component of net assets.
(2) Derivative instruments are stated at fair market value.
(3) The Company revalued the land used in the operations based on the Act for Revaluation of Land (Act No.34
promulgated on March 31, 1998). The difference between fair value and book value resulting from the revaluation, netof related taxes, is recorded as revaluation reserve for land as a separate component of net assets and the related tax isrecorded as deferred tax liabilities for land revaluation.
• Date of revaluation: March 31, 2002
• Method of revaluation as prescribed for in Article 3 Paragraph 3 of the said Act:
Calculation is based on the appraisal value for property tax set forth in Article 2 item 3 of the Enforcement
Ordinance of the Act for Revaluation of Land (Government Ordinance No.119 promulgated on March 31, 1998)
and the road rate set forth in Article 2 item 4 of the said Ordinance with certain reasonable adjustments.
(4) Depreciation of the Company’s tangible fixed assets is calculated by the following methods.
• Tangible fixed assets (excluding lease assets): Declining-balance method
However, buildings (excluding building attachments and structures acquired on or before March 31, 2016)acquired on or after April 1, 1998 are depreciated using Straight-line method.
• Lease assets related to finance lease transactions that do not transfer ownership: Straight-line method over thelease term with no residual value.
Other tangible fixed assets acquired for ¥100,000 or more but less than ¥200,000 are depreciated equally
over three years.
(5) Assets and liabilities denominated in foreign currencies, except for investments in unconsolidated subsidiaries andaffiliates, are translated into Japanese yen at the effective exchange rate prevailing at the balance sheet date. Investments
in unconsolidated subsidiaries and affiliates are translated into Japanese yen at the exchange rate on the date ofacquisition.

47

Fukoku Mutual Life Insurance Company

(6) Allowance for possible loan losses for the Company is provided in accordance with the standards of self-assessment andwrite-offs and reserves on credit quality:i) For the credits of borrowers who are legally bankrupt such as being in the proceedings of bankruptcy or civil
rehabilitation (hereinafter called “legally bankrupt borrowers”) and who are substantially bankrupt (hereinafter
called “substantially bankrupt borrowers”), the Company provides the remaining amounts of credits after the
direct write-off described below and the deductions of the amount expected to be collected through the disposal ofcollateral or the execution of guarantees.
ii) For the credits of borrowers who are not currently bankrupt but have a high possibility of bankruptcy(hereinafter called “not currently bankrupt borrowers”), the Company provides the amounts deemed asnecessary considering the borrowers’ ability to pay, within the amounts after deductions of the amounts
expected to be collected through the disposal of collateral or the execution of guarantees.
iii) For the credits of borrowers other than the above, the Company provides the amounts calculated by multiplying theborrowers’ balance by the actual ratio of bad debt losses on defaults during a certain past period.
All credits are assessed by the relevant departments in accordance with the Company’s standards of selfassessment on credit quality. The results of the assessment are reviewed by the audit department, which is independentof business-related divisions. Subsequently, the allowance for possible loan losses is provided based on the results ofthese assessments.
For the credits of legally bankrupt borrowers and substantially bankrupt borrowers, the amounts remaining after
deductions of collateral value or the amounts collectible through the execution of guarantees are written-off directlyfrom the borrowers’ balances as the estimated uncollectible amounts. The amount written-off as of March 31, 2023 was¥0 million.
(7) Net defined benefit liabilities and assets, which are provided for employees’ retirement benefits, are calculated bydeducting the amount of pension assets from the amount of retirement benefit obligations incurred as of the balance
sheet date based on the projected retirement benefits as of the current fiscal year end.
The Company uses the following methods of accounting in relation to retirement benefits:• Method for allocation of projected retirement benefits ........................

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

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

10 years(8) Reserve for price fluctuation is calculated in accordance with Article 115 of the Insurance Business Act.
(9) Hedge accounting is based on "Accounting Standards for Financial Instruments" (ASBJ Statement No. 10, July 4, 2019).
The Company applies a fair value hedge accounting as a hedge against the risk of foreign exchange fluctuation in
relation to bonds and others denominated in foreign currencies, and a designated hedge accounting (“Furiate shori”) for
foreign currency swaps as a hedge against the risk of foreign exchange fluctuation in relation to bonds denominated inforeign currencies issued by the Company.
For assessing the effectiveness of hedge used, ratio analysis of comparing the fluctuations in the fair value orcash flows of hedged items and hedging instruments is mainly applied.
(10) The Company accounts for consumption taxes by the tax-exclusion method. The consumption taxes on certain assets,
which are not deductible from consumption taxes withheld and that are stipulated to be deferred under the Tax Act, aredeferred as prepaid expenses and amortized equally over five years. Consumption taxes other than deferredconsumption taxes are recognized as an expense when incurred.

48

Fukoku Mutual Life Insurance Company

(11) Initial premium incomes are recorded by the relevant amounts received when the premium incomes have been received
and the responsibilities on the insurance contract have been commenced, in principal.
Subsequent premium incomes are also recorded as the amount of payments that have been received.
Of premium incomes that have been received, the portion corresponding to the period that has yet to pass as ofthe end of the fiscal year is accumulated as policy reserve in accordance with Article 116 of the Insurance Business Act
and Article 69 Paragraph 1 Item 2 of the Enforcement Regulation of the Insurance Business Act.
Premium incomes associated with the acceptance of group annuities are recorded as amounts equivalent to thepolicy reserve received when accepting the transfers of these group annuities.
(12) Claims and other payments (excluding reinsurance premiums) are recorded by the relevant amounts paid when thecause for payment under the policy conditions is occurred and the calculated amounts are paid based on the policy
conditions.
In accordance with Article 117 of the Insurance Business Act and Article 72 of the Enforcement Regulation of
the Insurance Business Act, reserve for outstanding claims are accumulated as for claims for which the Company has apayment due but has not paid, or for which the occurrence of cause for payment has not been reported but the Company
recognizes that insured payment has already occurred as of the end of the fiscal year.
Regarding claims for which the occurrence of cause for payment has not been reported but the Company
recognizes that insured payment has already occurred (“IBNR reserves”), the scope of payment of hospitalization
benefits was changed in the fiscal year ended March 31, 2023, with respect to those diagnosed with COVID-19 andwere under the care of a doctor or the like at an lodging facility or at home (“deemed hospitalization”). As a result of
this change, an appropriate amount of reserves cannot be obtained with the calculation method set forth in the main
rules in Article 1, Paragraph 1 of the Notification of the Minister of Finance No.234, 1998 (“IBNR Notification”). The
Company therefore records the amount that was calculated using the following method, pursuant to provisions in theproviso of Article 1, Paragraph 1 of IBNR Notification (the “Proviso”).
(Overview of the calculation method)
The Company first deducts an amount pertaining to deemed hospitalization of policy holders other than those withhigh risk of severity (“4 categories”) from a required amount of IBNR reserves and the amount of claim payments for
all the fiscal years, as set forth in the main rules in Article 1, Paragraph 1 of IBNR Notification, and then calculates inthe same manner as in the main rules in Article 1, Paragraph 1 of IBNR Notification.
In addition, the amount pertaining to deemed hospitalization of the 4 categories which date of diagnosis
required for the above calculation is before September 25, 2022 is estimated by multiplying the amount for deemedhospitalization for those 65 years of age or older whose diagnosis date is before September 25, 2022 by the ratio of theamount for the four categories whose diagnosis date is on or after September 26, 2022 and the amount for the deemedhospitalization for persons 65 years of age or older. However, the amount related to 4 categories deemedhospitalizations for co-insurance follower policies is estimated based on the amount of payments for leader policies.
Claims and other payments associated with the outgoing transfer of group annuities are recorded as amounts
equivalent to the policy reserve transferred when recognizing the transfers of these group annuities.
(13) Policy reserve of the Company is accumulated in accordance with the methods stated in the statement of calculation
procedures for Insurance Premiums and Policy Reserves (Article 4 Paragraph 2 Item 4 of the Insurance Business Act)
pursuant to Article 116 Paragraph 1 of the Insurance Business Act to prepare for the future performance of obligations
under the insurance contracts for which the insurer’s responsibilities have started as of the end of the consolidated
fiscal year.
Premium reserves, one of the components of policy reserve, are calculated by the following method.
i) In regard to the policies subject to the standard policy reserve, the method as prescribed by the Commissionerof Financial Services Agency (Ministry of Finance Ordinance No.48, 1996) is applied.
ii) In regard to the policies not subject to the standard policy reserve, the net level premium method is applied.
49

Fukoku Mutual Life Insurance Company

In regard to the policy reserve accumulated pursuant to Article 69 Paragraphs 1,2, and 4 of the Enforcement
Regulation of the Insurance Business Act, when the actual assumptions for long-term future cash flows (such asassumed incidence rate and assumed interest rate) deviate from those assumptions set in the “statement of calculation
procedures for Insurance Premiums and Policy Reserves” and policy reserve is considered to be possibly insufficient tocover the future performance of obligations, additional policy reserve is required to accumulate in accordance with
Article 69 Paragraph 5 of the Enforcement Regulation of the Insurance Business Act. The following reserves have been
established in compliance with this regulation.
• Among individual annuity insurance policies with an assumed interest rate of 5.00% or higher, for policies that havebegun paying annuities (excluding wife’s annuity insurance additional rider), the Company has reduced the assumed
interest rate to 1.00% and funded additional policy reserves. As of March 31, 2023, the balance of these policy
reserves was ¥71,469 million.
• Among whole life insurance policies with assumed interest rates of 5.00% or higher following the fiscal year ended
March 31, 2023, the Company has reduced assumed interest rates for policies with premiums that have been paid infull (excluding policies that have been converted into paid-up or extended policies, single premium policies, andpolicies for which premiums have been waived) to 1.00% and funded additional policy reserves. As of March 31,
2023, the balance of these policy reserves was ¥106,590 million.
• The Company has also funded additional policy reserves for certain whole life insurance policies that include
distribution of surplus every five years, new cancer riders, highly advanced medical riders and transplant medical
riders. As of March 31, 2023, the balance of these policy reserves was ¥105 million.
Appointed actuary, for each fiscal year, verify whether policy reserves have been reasonably accumulated inaccordance with Article 121 Paragraph 1 of the Insurance Business Act and Article 80 of the Enforcement
Regulation of the Insurance Business Act.
Contingency reserves, one of the components of policy reserve, are accumulated pursuant to Article 116 of
the Insurance Business Act and Article 69 Paragraph 1 Item 3 of the Enforcement Regulation of the Insurance
Business Act to cover risks that may accrue in the future in order to ensure performing future obligations under the
insurance contracts.
(14) Depreciation of intangible fixed assets is calculated by the following methods.
• Software: Straight-line method over the estimated useful lives.
• Lease assets related to finance lease transactions that do not transfer ownership: Straight-line method over thelease term with no residual value.
(15) Of the bonds of consolidated subsidiaries corresponding to the sub-groups of individual insurance and annuities which
are set by insurance types and investment policies, the bonds that are held to match the duration of liabilities areclassified as policy-reserve-matching bonds in accordance with “Temporary Treatment of Accounting and Auditing
Concerning Policy-reserve-matching Bonds in Insurance Industry” (Industry Audit Committee Report No. 21 issued
by the Japanese Institute of Certified Public Accountants on November 16, 2000).

2. The Company began applying the “Implementation Guidance on Accounting Standard for Fair Value Measurement”(ASBJ Statement No. 31, June 17, 2021; hereinafter called “Implementation Guidance on Accounting Standard for Fair
Value Measurement”) from the beginning of the consolidated fiscal year. In accordance with the transitional treatments
prescribed in Paragraph 27-2 of the Implementation Guidance on Accounting Standard for Fair Value Measurement, newaccounting policies set forth by the Implementation Guidance on Accounting Standard for Fair Value Measurement will beapplied prospectively. As a result, certain investment trusts that had previously been carried on the consolidated balance
sheet at acquisition cost are stated at fair value on the consolidated balance sheet from the consolidated fiscal year ended
March 31, 2023. The Company has observed no material impact from this application of the Implementation Guidance on
Accounting Standard for Fair Value Measurement.
50

Fukoku Mutual Life Insurance Company

3. Asset management of the general accounts other than the separate accounts stipulated in Article 118 Paragraph 1 of the
Insurance Business Act is conducted on the principle of prudent and profitable investments by the Company, considering
public and social responsibilities of the insurance business. Based on this policy, the Company allocates the fund, securing
its liquidity, from the medium-to-long term viewpoints. The Company is diversifying investments in assets such as foreign
securities, stocks and real estates within the acceptable range of risk in order to enhance the profitability, althoughyen-denominated interest bearing assets including debt securities such as Japanese government bonds and loans are thecores of the portfolios under the asset liability management. Derivatives are mainly used to hedge the market risk regarding
spot-priced assets and liabilities.
Major financial instruments including securities, loans and derivatives are exposed to market risk and credit risk.
The Company manages its asset management risk by establishing internal control systems including various rules
pursuant to the “Three Basic Rules related to Enterprise Risk Management” established by the Board of Directors.
Specifically, the Company eliminates excessive risk deviating from the basic principle and secures the safety of the assets
by utilizing control functions of the Financial and Investment Risk Management Department towards the asset
management sections, monitoring the status of market risk and credit risk periodically on a daily or monthly basis. In
addition, the Company quantifies the market risk and credit risk using value-at-risk (VaR) method in order to control thepossible maximum losses which may arise from the holding assets within a certain range of risk buffers.
The carrying amounts, fair values and their related differences of major financial assets and liabilities in the generalaccount as of March 31, 2023 were as follows:(Millions of yen)

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

Fair value

Difference¥24,897
24,897¥24,897
24,897¥——

10,232
1,252,237
835,657
5,076,422
7,174,550

10,232
1,368,169
844,467
5,076,422
7,299,292—
115,9318,810—
124,741

50,456477,104
527,561
7,727,009
241,935
241,935

50,456
487,443
537,900
7,862,089
238,498
238,498(0)
10,33910,339135,080(3,436)(3,436)

(683)
(840)
¥(1,524)

(683)
(840)
¥(1,524)——¥—*1 The fair value of derivative instruments that are currency swaps under designated hedge accounting is included in the fair valueof subordinated bonds because it is accounted for as an integral part of the subordinated bonds that are the hedge items.
*2 Assets and liabilities generated by derivative instruments are offset and presented net. Net liabilities in total are presented inparentheses.
Notes: 1. Stocks without market prices, such as unlisted stocks, are not included in Securities of the above table.
The amount of these stocks on the balance sheet as of March 31, 2023 was ¥9,114 million.
Notes: 2. In accordance with Paragraph 24-16 of the Implementation Guidance on Accounting Standard for Fair Value
Measurement, investments in partnerships are not included in Securities of the above table.
The amount of investments in partnerships included on the balance sheet as of March 31, 2023, was ¥30,957 million.
Notes: 3. Investment trusts with real estate as investment trust properties which have applied Paragraph 24-9 of the Implementation
Guidance on Accounting Standard for Fair Value Measurement are included in Securities.

51

Fukoku Mutual Life Insurance Company

4. Matters concerning the breakdown of financial instruments by fair value level are as follows.
The fair values of financial instruments are classified into the following three levels according to the observability andmateriality of inputs used to measure fair value.
Fair Value Level 1: Fair values measured using (unadjusted) quoted prices in active markets for identical assets or liabilities
Fair Value Level 2: Fair values measured using directly or indirectly observable inputs other than Level 1 inputs
Fair Value Level 3: Fair values measured using material unobservable inputs
When multiple inputs with material impact are used to measure fair value, the resulting fair value is classified into the lowest
fair value level into which any of these inputs can be categorized.
(1) Financial assets and liabilities with fair values recorded on the balance sheet as of March 31, 2023
(Millions of yen)Classification
Money held in trust:
Trading securities........................…….....
Total money held in trust..........................
Securities:
Trading securities:
Foreign securities.................................
Total trading securities…………….…
Available-for-sale securities:
Government bonds……………….…...
Local government bonds………….….
Corporate bonds……………….….….
Stocks………………………………...
Foreign securities…………………….
Other securities………………………
Total available-for-sale securities……
Total securities........................…….....
Assets total.....................………………..........
Derivative instruments*:
Currency-related………………..............
Interest-related………………………….
Stock-related……………………............
Bond-related…………………….………

Fair value
Level 2

Level 1

Level 3

Total

¥—
—

¥24,897
24,897¥——¥24,897
24,897——

10,232
10,232——

10,232
10,232

1,724,721——
740,041595,331
47,246
3,107,340
3,107,340
3,107,340—
124,909642,457—
1,053,931
115,697
1,936,996
1,947,228
1,972,126————
26,490—26,49026,49026,4901,724,721
124,909642,457
740,041
1,675,753
162,943
5,070,826
5,081,059
5,105,957

—
—
(31)
(137)

(1,402)
47
—
—

—
—
—
—

(1,402)
47
(31)
(137)

¥(169)¥(1,355)¥—¥(1,524)

Total derivative instruments...….............

* Assets and liabilities generated by derivative instruments are offset and presented net. Net liabilities in total are presented
in parentheses.
Note: Investment trusts with real estate as investment trust properties that have applied Paragraph 24-9 of the Implementation
Guidance on Accounting Standard for Fair Value Measurement are not included in the figures above. The amount of theinvestment trusts on the balance sheet as of March 31, 2023 was ¥5,596 million. Reconciliation of balances from the
beginning of the current fiscal year to balances as of March 31, 2023 for the investment trusts were as follows:(Millions of yen)

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

¥3,654
441
441
1,500
1,500
¥5,596* These amounts are included in net unrealized gains (losses) on available-for-sale securities,
net of tax under other comprehensive income in the consolidated statements ofcomprehensive income for the fiscal year ended March 31, 2023.

52

Fukoku Mutual Life Insurance Company

(2) Financial assets and liabilities with fair values not recorded on the balance sheet as of March 31, 2023
(Millions of yen)Classification
Securities:
Held-to-maturity debt securities:
Government bonds……………….…...
Local government bonds……….….….
Corporate bonds….………………..….
Total held-to-maturity debt securities...
Policy-reserve-matching bonds:
Government bonds…………….……...
Local government bonds….……….….
Corporate bonds……..…………….….
Total policy-reserve-matching bonds…
Total securities.............................…….
Loans:
Policy loans.................................…..........
Ordinary loans.......................…................
Total loans................................….............
Assets total.........................................…….......
Subordinated bonds……………………….....
Liabilities total..........………………….….......

Fair value
Level 2

Level 1

Level 3

¥1,171,314

¥—

—
—

93,825103,028

1,171,314

196,854404,527———

126,664
313,275

404,527
1,575,842

439,940
636,794———
1,575,842
—
¥—

—
—
—
636,794
238,498¥238,498

Total

¥—
—
—
—

¥1,171,314
93,825103,028—————

404,527
126,664
313,275
844,467
2,212,636

50,456
487,443

50,456
487,443

537,900
537,900—¥—

537,900
2,750,536
238,498¥238,498

1,368,169(3) Explanation of valuation techniques and inputs used to measure fair valuei) Securities (including deposits and monetary claims bought which are treated as securities based on “AccountingStandards for Financial Instruments” [ASBJ Statement No.10, July 4, 2019])
The fair values of securities for which unadjusted quoted market prices in active markets are available (primarily
listed stocks and government bonds [including some foreign securities]) are classified as Fair Value Level 1.
Meanwhile, the fair values of securities for which quoted market prices are available, but are not available inactive markets, are classified as Fair Value Level 2 (This category primarily includes local government bonds andcorporate bonds [including some foreign securities]). When quoted market prices are not available for securities,
prices obtained from third parties (mainly from information vendors and financial institutions with which theCompany conducts business) and determined to have been measured in accordance with prescribed accounting
standards are used to measure the fair values of these securities. If the inputs used to measure the fair value of agiven security are material but unobservable, the resulting fair value is classified as Fair Value Level 3.
ii) Money held in trust
In principle, the fair values of securities managed as trust assets and classifed as money held in trust are measured
using the Company's prescribed method for determining the value of securities. These fair values are categorized
as Fair Value Level 2.
iii) Loans
The fair values of policy loans are deemed to approximate book values, considering estimated repayment period
and interest rate conditions since their repayment deadlines have not been set up due to the characteristics that theloans are limited to the amount of cash surrender values. Therefore, the book values are used as the fair values ofpolicy loans.
The fair values of floating interest rate loans among the ordinary loans approximate the book values
because the market interest rates are reflected in future cash flows in a short period. Therefore, the fair values offloating interest rate loans are based on their book values. The fair values of fixed interest rate loans are primarily
measured by discounting the future cash flows to the present values.
53

Fukoku Mutual Life Insurance Company

The fair values of loans from legally bankrupt borrowers, substantially bankrupt borrowers and not
currently bankrupt borrowers are computed by deducting the amount of the allowance for possible loan losses
from the book values before direct write-offs.
If the impact of unobservable inputs used to measure the fair values of loans is determined to be material,
the resulting fair values are classified as Fair Value Level 3. Otherwise, they are categorized as Fair Value Level
2.
iv) Subordinated bonds
The fair values of corporate bonds issued by the Company are classified as Fair Value Level 2 and are measured
using the same method applied to securities.
v) Derivative instruments
The fair values of derivative instruments for which unadjusted quoted market prices in active markets areavailable (primarily exchange-traded futures and options) are classified as Fair Value Level 1. However, mostderivative instruments are traded over the counter and have no quoted market prices. Accordingly, prices obtained
from third parties (mainly from information vendors and financial institutions with which the Company conducts
business) and determined to have been measured in accordance with prescribed accounting standards are used tomeasure the fair values of these derivative instruments. Fair values of derivative instruments that were measured
using only observable inputs or with unobservable inputs considered to be immaterial are classified as Fair Value
Level 2. Meanwhile, fair values of derivative instruments that have been measured using material unobservable
inputs are categorized as Fair Value Level 3.
(4) Information concerning fair values of financial assets and liabilities that have been recorded on the balance sheet as ofMarch 31, 2023 and classified as Fair Value Level 3i) Quantitative information regarding material unobservable inputs
When measuring fair value, the Company does not adjust quoted prices obtained from third parties and does notmake estimates related to inputs that it cannot observe. Accordingly, quantitative information regarding material
unobservable inputs have been omitted.
ii) Reconciliation of balances at the beginning of the current fiscal year and balances as of March 31, 2023, andvaluation gains or losses recognized in the statements of operations for the consolidated fiscal year ended March
31, 2023.
(Millions of yen)
Securities,
Available-for-sale securities,
Foreign securities

Total

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

¥28,139¥28,139(1,648)(1,648)

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

(10)

(10)

Values recognized as other comprehensive income …..

(1,638)(1,638)

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

¥26,490¥26,490*2*1 These amounts are included in investment income and investment expenses in the consolidated statements ofoperations for the fiscal year ended March 31, 2023.
*2 These amounts are included in net unrealized gains (losses) on available-for-sale securities, net of tax under othercomprehensive income in the consolidated statements of comprehensive income for the fiscal year ended March
31, 2023.

iii) Explanation of the valuation process for fair value
The Company's asset management division is responsible for the formulation of policies and procedures related tothe measurement of fair value and the actual measurement of fair value. These fair values are subsequently
checked by the risk management department to ensure their appropriateness and compliance with relevant
policies and procedures.
54

Fukoku Mutual Life Insurance Company

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

5. The Company holds investment and rental properties such as office buildings in Tokyo and other areas. The carrying
amounts and the fair values of investment and rental properties were ¥197,979 million and ¥349,089 million as of March 31,
2023, respectively. The fair value is mainly based on the value calculated by the Company in accordance with real estateappraisal standards which includes some adjustments using the reference prices.
The amount corresponding to asset retirement obligations included in the carrying amount of investment and rental
properties was ¥321 million as of March 31, 2023.

6. The amount of securities lent under lending agreements was ¥504,760 million as of March 31, 2023.

7. The total amount of claims against bankrupt and quasi-bankrupt obligors, claims with collection risk, delinquent loans past
three months or more, and restructured loans was ¥1,246 million as March 31, 2023. The details are as follows.
i) The balance of claims against bankrupt and quasi-bankrupt obligors was ¥140 million as of March 31, 2023.
Of which, the estimated uncollectible amount written-off was ¥0 million as of March 31, 2023.
Claims against bankrupt and quasi-bankrupt obligors are loans to borrowers who are subject to bankruptcy,
corporate reorganization or rehabilitation or other similar proceedings and other borrowers in serious financial
difficulties.
ii) The balance of claims with collection risk was ¥544 million as of March 31, 2023.
Claims with collection risk are loans to obligors (other than bankrupt and quasi-bankrupt obligors) with deteriorated
financial condition and results of operations from which it is unlikely that the principal and interest on the loans will berecovered.
iii) There was no balance of delinquent loans past three months or more as of March 31, 2023.
Delinquent loans past three months or more are loans for which interest payments or repayments of principal aredelinquent for three months or more from the due date under the terms of the related loan agreements, excluding thoseloans classified as claims against bankrupt and quasi-bankrupt obligors, claims with collection risk.
iv) The balance of restructured loans was ¥561 million as of March 31, 2023.
Restructured loans are loans for which certain concessions favorable to borrowers, such as interest reduction or
exemption, rescheduling of due date for repayments of principal or interest payment, waiver of claim or other terms,
have been negotiated for the purpose of assisting and supporting the borrowers in the restructuring of their business.
This category excludes loans classified as claims against bankrupt and quasi-bankrupt obligors, claims with collection
risk, and delinquent loans past three months or more.

55

Fukoku Mutual Life Insurance Company

8. Accumulated depreciation of tangible fixed assets were ¥183,559 million as of March 31, 2023.

9. Total assets in separate accounts provided for in Article 118 of the Insurance Business Act were ¥118,783 million as ofMarch 31, 2023. The amounts of separate account liabilities were the same as separate account assets.

10. The total amounts of receivables from/payables to unconsolidated subsidiaries were ¥2,229 million and ¥42 million as ofMarch 31, 2023, respectively.

11. Deferred tax assets and deferred tax liabilities as of March 31, 2023 were ¥177,047 million and ¥156,019 million,
respectively. Valuation allowance for deferred tax assets was ¥4,896 million.
Major components of deferred tax assets were ¥102,788 million of policy reserves, ¥52,790 million of reserve forprice fluctuation and ¥12,766 million of net defined benefit liabilities as of March 31, 2023.
Major component of deferred tax liabilities was ¥149,777 million of net unrealized gains on available-for-salesecurities as of March 31, 2023.
The statutory tax rate and the actual effective tax rate for the year ended March 31, 2023 were 28.0% and 5.4%,
respectively. The difference between the statutory tax rate and the actual effective tax rate was attributable mainly to-23.4% of reserve for dividends to policyholders.

12. Changes in reserve for dividends to policyholders for the year ended March 31, 2023 were as follows:(Millions of yen)

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

¥ 63,411

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

30,726

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

(29,731)

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

13

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

¥ 64,420

13. Changes in reserve for dividends to policyholders (Fukokushinrai Life Insurance Co., Ltd.) for the year ended
March 31, 2023 were as follows:(Millions of yen)

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

¥ 322

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

(192)

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

0

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

173

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

¥ 304

14. The amount of stocks of unconsolidated subsidiaries was ¥404 million as of March 31, 2023.

15. Assets pledged as collateral as of March 31, 2023 were ¥175,557 million of securities.
Secured debts as of March 31, 2023, were ¥161,480 million.
These amounts include ¥147,552 million of investments in securities deposited and ¥155,483 million of cash
received as collateral under securities lending transactions secured by cash as of March 31, 2023.

56

Fukoku Mutual Life Insurance Company

16. Reserve for outstanding claims for the reinsurance contracts provided in accordance with Article 71 Paragraph 1 of the
Enforcement Regulation of the Insurance Business Act (hereinafter called “reserve for outstanding claims for ceded
reinsurance”) was ¥0 million as of March 31, 2023.
Policy reserve for the reinsurance contracts provided in accordance with Article 71 Paragraph 1 of the
Enforcement Regulation of the Insurance Business Act (hereinafter called “policy reserve for ceded reinsurance”) was ¥40
million as of March 31, 2023.

17. There were unused commitment line agreements under which the Company is the lender of ¥8,604 million as of March 31,
2023.

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

19. Matters Related to Employees’ Retirement Benefits as of March 31, 2023
(1) Overview of Employees’ Retirement Benefit Plan
As for a defined benefit plan for office-based employees, the Company and its consolidated subsidiaries have adefined benefit corporate pension plan and retirement lump-sum payments. As for a defined contribution plan for these
employees, the Company also has a defined contribution pension plan.
As for a defined benefit plan for sales employees, the Company has retirement lump-sum payments.
The Company places a retirement benefit trust in relation to the retirement lump-sum grant plan for sales
employees.
The simplified method for calculating retirement benefit obligation is applied to a portion of the Company andsome consolidated subsidiaries’ retirement lump-sum grant plans.
(2) Defined Benefit Plani) Reconciliation of beginning and end of balance of retirement benefit obligation(Millions of yen)

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

¥91,156
3,718
542
(12)
(4,450)¥90,953ii) Reconciliation of beginning and end of balance of pension plan assets(Millions of yen)

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

57¥64,301
1,232
2,410
1,105
(2,135)
3¥66,918

Fukoku Mutual Life Insurance Company

iii) Reconciliation of retirement benefit obligation and pension plan assets with net defined benefit liabilities andassets presented on the consolidated balance sheet(Millions of yen)a. Funded plan retirement benefit obligation…………………………………
b. Pension plan assets……………………………….…………….…………..
c. (a + b)…………………………………………………………….………...
d. Unfunded plan retirement benefit obligation……………………………....
e. Net amount of liabilities and assets presented
on the consolidated balance sheet……………………………….……….
f. Net defined benefit liabilities…………………………………………..…..
g. Net defined benefit assets………………………………………………….
h. Net amount of liabilities and assets presented
on the consolidated balance sheet………………………………….…….

¥78,877(66,918)
11,95912,07624,03525,220(1,184)¥24,035iv) Breakdown of retirement benefit gains and losses(Millions of yen)

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

¥3,718542(1,232)772
5(3)¥3,802v) Remeasurements of defined benefit plan
Remeasurements of defined benefit plan (before tax effects) comprised the following:(Millions of yen)Amortization of actuarial differences….…………………………..….….…
Amortization of prior service cost………...……………………..…...……..
Total…………………………………………………………………………

¥3,196
5¥3,201vi) Accumulated remeasurements of defined benefit plan
Accumulated remeasurements of defined benefit plan (before tax effects) comprised the following:(Millions of yen)

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

¥421
(40)
¥381

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

44.8%
30.4%
9.3%
8.2%
3.7%
3.5%
100.0%

Within the total of pension assets, 38.1% of this amount is accounted for by the retirement benefit trust
established in relation to the retirement lump-sum payments plan for sales employees.
viii) Method for setting the expected long-term rate of return
To set the expected long-term rate of return on pension plan assets, the Company takes into account the present
and future allocation of pension plan assets, and the present and expected future long-term rate of return on avariety of assets that makes up the pension assets.
58

Fukoku Mutual Life Insurance Company

ix) Underlying actuarial assumptions
Main underlying actuarial assumptions as of March 31, 2023, were as follows:
Discount rate………………………………..………….…………….…..…
Expected long-term rate of return on pension plan assets
Defined Benefit Plan….…………………………………………………...
Retirement benefit trust………………………………..……..…………....

0.6%
3.0%
0.0%

(3) Defined Contribution Plan
The required contribution amount by the Company and its consolidated subsidiaries to the defined contribution plan was¥339 million as of March 31, 2023.

59

Fukoku Mutual Life Insurance Company

III. Notes to the Consolidated Statements of Operations
1. The total amounts of revenues and expenses in connection with unconsolidated subsidiaries were ¥120 million and ¥1,184
million for the year ended March 31, 2023.

2. For the year ended March 31, 2023, in calculating the provision of reserve for outstanding claims, a reversal of reserve foroutstanding claims for ceded reinsurance of ¥1 million was deducted. In calculating the provision of policy reserves, areversal of policy reserve for ceded reinsurance of ¥2 million was added.

IV. Notes to the Consolidated Statements of Comprehensive Income
1. Other Comprehensive Income
The reclassification adjustments and tax effect amounts related to other comprehensive income for the year ended March
31, 2023 were as follows:i) Net unrealized gains (losses) on available-for-sale securities, net of tax(Millions of yen)Amount incurred during the fiscal year………………………….…………
Reclassification adjustments…………………………..……..……………..
Before tax adjustments…………………………………………………….
Tax effects……………………………………………………..…………..

¥(117,506)(17,496)(135,002)
38,212Net unrealized gains (losses) on available-for-sale securities, net of tax….

¥(96,789)ii) Foreign currency translation adjustments(Millions of yen)Amount incurred during the fiscal year…………………………….………

¥254

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

—

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

254

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

—

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

¥254iii) Remeasurements of defined benefit plans, net of tax(Millions of yen)Amount incurred during the fiscal year…….………………………………
Reclassification adjustments…………………………..………..…………..
Before tax adjustments…………………………………………………….
Tax effects……………………………………………………..…………..
Remeasurements of defined benefit plans, net of tax………….………….

¥2,423
777
3,201
(896)
2,305

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

¥(94,229)

60

Fukoku Mutual Life Insurance Company

V. Notes to the Consolidated Statements of Cash Flows
1. Cash and cash equivalents as of March 31, 2023 consist of "Cash," "Deposits in transfer account," "Current deposits,""Ordinary deposits," "Notice deposits," "Time deposits maturing within 3 months of the date of acquisition," "Foreign
currency deposits maturing within three months of the date of acquisition," "Negotiable certificate of deposits maturing
within three months of the date of acquisition," "Call loans" and "Monetary claims bought maturing within three months ofthe date of acquisition."

2. Reconciliations of cash and cash equivalents in the consolidated statements of cash flows to the consolidated balance sheet
accounts as of March 31, 2023 were as follows:(Millions of yen)

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

¥524,841

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

130,000

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

(13,100)

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

(842)

Cash and cash equivalents.................................................................………….....

¥640,899

61

Fukoku Mutual Life Insurance Company

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

As of March 31, 2022

Claims against bankrupt and quasi-bankrupt obligors

As of March 31, 2023

160

140

1,999

544

—

—

1,616

561

3,776
[0.32%]

1,246[0.12%]

Claims against normal obligors

1,178,872

1,035,561

Total

1,182,649

1,036,808

Claims with collection risk

Delinquent loans past three months or more
Restructured loans
Subtotal[Percentage of total]

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

62

Fukoku Mutual Life Insurance Company

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

As ofMarch 31, 2022

As ofMarch 31, 2023

2,003,378

1,923,471

Foundation funds and surplus

235,245

238,663

Reserve for price fluctuation

187,692

188,538

Contingency reserve

157,929

170,512

Catastrophe loss reserve——

General allowance for possible loan losses

820

404

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

607,419486,289

Net unrealized gains on real estate × 85%

140,830

155,499

Sum of unrecognized actuarial differences and unrecognized prior service cost

(2,819)381

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

389,036

395,807

Qualifying subordinated debt

241,935

241,935

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

Deductible items——

45,28845,439314,415

328,259

Total solvency margin(A)

OthersTotal amount of risk √(√𝑅12 + 𝑅52 + 𝑅8 + 𝑅9)2 + (𝑅2 + 𝑅3 + 𝑅7)2 + 𝑅4 + 𝑅6

(B)

Insurance risk

R1

22,21521,801

General insurance risk

R5

—

—

Catastrophe risk

R6

—

—

3rd sector insurance risk

R8

10,108

10,241

Small amount and short-term insurance risk

R9

—

—

Assumed investment yield risk

R2

22,50821,398Minimum guarantee risk

R7

—

—

Investment risk

R3

283,438

298,225

Business risk

R4

6,765

7,033

1,274.3%

1,171.9%

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

Notes: 1. Above figures are calculated based on the provisions of Articles 86-2 and 88 of the Enforcement Regulation of the Insurance
Business Act and the Financial Services Agency Notification No. 23, 2011.
Notes: 2. "Minimum guarantee risk" is calculated by standard method.

63

Fukoku Mutual Life Insurance Company

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

As ofMarch 31, 2022

As ofMarch 31, 2023

99,581

97,656

Foundation funds and surplus

71,15871,966

Reserve for price fluctuation

11,022

11,349Contingency reserve

2,471

2,623

0

0

8,672

5,156

—

—

2,295

2,285

Qualifying subordinated debt——

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

Deductible items

—

—

3,960

4,274

17,82818,271

Total solvency margin(A)

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

OthersTotal amount of risk √(𝑅1 + 𝑅8)2 + (𝑅2 + 𝑅3 + 𝑅7)2 + 𝑅4

(B)

Insurance risk

R1

410

400

3rd sector insurance risk

R8

144

149

Assumed investment yield risk

R2

326

324

Minimum guarantee risk

R7

—

—

Investment risk

R3

17, 132

17,569Business risk

R4

360

368

1,117.1%

1,068.9%

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

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

64

Fukoku Mutual Life Insurance Company