August 7, 2015

Financial Results for the Three Months Ended June 30, 2015
Fukoku Mutual Life Insurance Company (President: Yoshiteru Yoneyama) announces financial results
for the three months ended June 30, 2015.

[Contents]
1. Business Highlights･････････････････････････

P.1

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

P.3

3. Non-consolidated Balance Sheets･････････････････････････

P.6

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

P.7

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

P.9

6. Solvency Margin Ratio･････････････････････････

P.10

7. Status of Separate Account･････････････････････････

P.11

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

P.12

Fukoku Mutual Life Insurance Company

1. Business Highlights(1) Policies in Force, New Policies and Surrendered and Lapsed Policies(i) Policies in Force
As of March 31, 2015

As of June 30, 2015

Number of policies

AmountNumber of policies(Thousands)(100 millions of yen)Amount(Thousands)

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

Individual insurance

3,066

236,846

3,078

100.4

236,539

99.9

Individual annuities

739

28,718736

99.6

28,57999.5

Subtotal

3,805

265,564

3,815

100.3

265,118

99.8

Group insurance－

166,780－－

167,066

100.2

Group annuities－

21,232－－

20,78997.9

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

(ii) New Policies
Total
Three months ended
June 30, 2014

New business

Net increase by
conversion

Number of policies

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

Individual insurance

89

4,112

3,789

322

Individual annuities

4

165

169

(4)

Subtotal

94

4,277

3,959

318

Group insurance

－

15

15

－

Group annuities

－

0

0

－

Total
Three months ended
June 30, 2015

Individual insurance

New business

Number of policies

Amount

Net increase by
conversion

Amount(Thousands)

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

93

103.9

4,433

107.8

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

4,047

106.8

385

119.6

8

185.3

311

188.1

315

185.8

(4)

－

102

108.1

4,744

110.9

4,363

110.2

381

119.8

Group insurance

－

－

106

702.5

106

702.5

－

－

Group annuities

－

－

30

34,466,783.6

30

34,466,783.6－－

Individual annuities
Subtotal

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

(iii) Surrendered and Lapsed Policies (Individual Insurance and Individual Annuities)
Three months ended
June 30, 2014

Three months ended
June 30, 2015
Changes(%, YoY)

Amount of surrender and lapse(100 millions of yen)

3,803

3,446

90.6

Surrender and lapse ratio (%)

1.40

1.30

(0.10)

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

1

Fukoku Mutual Life Insurance Company

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

As of March 31, 2015

As of June 30, 2015
Changes(%, Pre-FYE)

Individual insurance

2,736

2,741

100.2

Individual annuities

1,327

1,330

100.2

Total

4,064

4,072

100.2

1,066

1,069

100.3

Medical coverage and living benefits(ii) New Policies(100 millions of yen except percentage)Three months ended June 30, 2014

Three months ended June 30, 2015
Changes(%, Pre-FYE)

Individual insurance

42

52

123.1

Individual annuities

7

10

153.4

Total

50

63

127.4

18

18

101.0

Medical coverage and living benefits

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

(3) Selected Items of Statements of Operations(100 millions of yen except percentage)Three months ended June 30, 2014

Three months ended June 30, 2015
Changes(%, Pre-FYE)

Premium and other income

1,569

1,731

110.3

363

604

166.3

Investment income
Claims and other payments

1,441

2,071

143.7

Investment expenses

56

133

238.2

Ordinary profits

162

361

222.3

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

As of March 31, 2015

As of June 30, 2015
Changes(%, Pre-FYE)

Total assets

66,1192

65,866

99.6

Fukoku Mutual Life Insurance Company

2. Investment Results of General Account Assets(1) Asset Composition(Millions of yen)Cash, deposits, call loans
Monetary claims bought
Money held in trust
Securities
Domestic bonds

As of March 31, 2015

As of June 30, 2015

AmountPercentage

AmountPercentage

282,9694.3

141,350

2.2

870

0.0

856

0.0

34,3190.5

34,5540.5

5,163,610

79.1

5,301,497

81.5

2,856,151

43.7

2,723,657

41.9

Domestic stocks

641,0669.8

661,954

10.2

Foreign securities

1,583,778

24.3

1,815,215

27.9

Foreign bonds

1,287,302

19.7

1,526,313

23.5

296,475

4.5

288,902

4.4

Foreign stocks and other securities
Other securities

82,614

1.3

100,670

1.5

763,900

11.7

741,617

11.4

Policy loans

63,3111.0

62,794

1.0

Ordinary loans

Loans

700,58810.7

678,822

10.4

Real estate

223,794

3.4

213,368

3.3

Others62,7501.0

74,531

1.1

Allowance for possible loan losses(1,948)( 0.0)(1,925)( 0.0)

6,530,267

100.0

6,505,851

100.0

1,572,701

24.1

1,895,774

29.1

Total
Foreign currency denominated assets

3

Fukoku Mutual Life Insurance Company

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

As of March 31, 2015

As of June 30, 2015

Gains/losses

Book value

Fair value

811,903

926,148

114,245

114,245

Fair value－

813,466

919,843

106,377

106,377

Domestic bonds

742,337

853,785

111,448－

111,448－

742,409846,957

104,547

104,547－

Foreign bonds

69,56572,362

－

－

2,797

2,797

－

71,05672,885

1,829

1,829

－

－

－

－

－

－

－

－

－

Gains
Held-to-maturity debt securities

Monetary claims bought

Gains/losses

Book value
Losses

Gains

Losses

Negotiable certificate of deposits

－

－

－

－

－

－

－

－

－

－

Others

－

－

－

－

－

－

－

－

－

－

Policy-reserve-matching bonds

1,215,695

1,346,650

130,954

131,00450

1,157,052

1,273,063

116,010116,216

206

Domestic bonds

1,174,597

1,305,280

130,683

130,73350

1,116,354

1,232,120

115,766

115,972

206

Foreign bonds

41,09841,369

270

270

－

40,69840,942

243

243

－

1,433

1,236

(196)

3

200

1,433

1,306

(127)

4

132

Investments in subsidiaries and affiliates
Available-for-sale securities

2,150,593

2,760,905

610,311611,672

1,360

2,343,269

2,953,020

609,751

615,439

5,687

Domestic bonds

807,550

892,795

85,24585,26924

740,377

808,629

68,252

68,998746

Domestic stocks

279,549

597,167

317,617317,842225

282,587

620,056

337,468

337,695

226

Foreign securities

1,010,329

1,197,021

186,692

187,788

1,096

1,250,062

1,432,238

182,176

186,837

4,661

Foreign bonds

784,142

901,979

117,837

118,593756

1,031,993

1,144,769

112,776

115,891

3,115

Foreign stocks and other securities

226,187

295,042

68,854

69,194340

218,068

287,468

69,40070,946

1,546
53

Other securities

53,16473,92020,756

20,771

15

70,242

92,096

21,854

21,907

Money held in trust

－

－

－

－

－

－

－

－

－

－

Monetary claims bought

－

－

－

－

－

－

－

－

－

－

Negotiable certificate of deposits

－

－

－

－

－

－

－

－

－

－

Others

－

－

－

－

－

－

－

－

－

－
6,026

Total

4,179,626

5,034,941

855,314856,926

1,611

4,315,222

5,147,233

832,011

838,037

Domestic bonds

2,724,485

3,051,862

327,377

327,45174

2,599,141

2,887,707

288,566

289,518

952

Domestic stocks

279,549

597,167

317,617317,842225

282,587

620,056

337,468

337,695

226

Foreign securities

1,122,427

1,311,990

189,563

190,859

1,296

1,363,250

1,547,372

184,121

188,915

4,794

Foreign bonds

894,806

1,015,712

120,906

121,662756

1,143,748

1,258,597

114,849

117,964

3,115

Foreign stocks and other securities

227,621296,278

68,657

69,197

540

219,502

288,774

69,272

70,951

1,678

Other securities

53,16473,92020,756

20,771

15

70,242

92,096

21,854

21,907

53

Money held in trust

－

－

－

－

－

－

－

－

－

－

Monetary claims bought

－

－

－

－

－

－

－

－

－

－

Negotiable certificate of deposits

－

－

－

－

－

－

－

－

－

－

Others

－

－

－

－

－

－

－

－

－

－

Note: The table above includes assets which are considered appropriate to deem as securities under the Financial Instruments
and Exchange Law.
* Book value of securities without fair value are as follows:(Millions of yen)
As of March 31, 2015

As of June 30, 2015

Held-to-maturity debt securities－－

Unlisted foreign bonds－－

Others－－－－Investments in subsidiaries and affiliates

35,56035,560Available-for-sale securities

17,031

14,910

8,338

6,337

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

Unlisted foreign bonds

－

－

8,693

8,573

52,59250,471

Policy-reserve-matching bonds

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

OthersTotal

4

Fukoku Mutual Life Insurance Company

(3) Fair Value Information on Money Held in Trust(Millions of yen)
As of March 31, 2015
Carrying
value onbalancesheetsMoney held in trust

34,319As of June 30, 2015

Gains/losses
Fair value

Gains
－

34,319Losses－－Carrying
value onbalancesheetsFair value

34,55434,554

Gains/losses
Gains－

Losses－－* Money held in trust for trading purpose(Millions of yen)
As of March 31, 2015
Net valuation gains/losses
included in the statementsof operations

Carrying value onbalance sheets
Money held in trust
for trading purpose

As of June 30, 2015

33,319Net valuation gains/losses
included in the statementsof operations

Carrying value onbalance sheets(0)

33,55487* Money held in trust classified as held-to-maturity, policy-reserve-matching and available-for-sale(Millions of yen)
As of March 31, 2015

As of June 30, 2015

Gains/losses

Book value Fair value

Gains

LossesBook
value

Fair value

Gains/losses
Gains

LossesMoney held in trust
for held-to-maturity

－

－

－

－

－

－

－

－

－

－

Money held in trust
for policy-reserve-matching

－

－

－

－

－

－

－

－

－

－

Money held in trust
for available-for-sale

－

－

－

－

－

－

－

－

－

－

(reference) Fair Value of Real Estate ( Land and Leaseholds)(millions of yen)
As of March 31, 2015
Carrying value on
the balance sheets
132,263

Fair value
235,337

As of June 30, 2015
Gains(losses)

Carrying value on
the balance sheets

103,073

125,724

Fair value
227,346

Gains(losses)
101,621

Notes: 1. As of June 30, 2015, fair value is based on the appraisal value by the real-estate appraiser, the appraisal value for property tax as ofJanuary 1, 2015 and the road rate as of January 1, 2014.
Notes: 2. As of March 31, 2015, fair value is based on the appraisal value by the real-estate appraiser, the appraisal value for property tax as ofJanuary 1, 2015 and the road rate as of January 1, 2014.

5

Fukoku Mutual Life Insurance Company

3. Non-consolidated Balance Sheets(Millions of yen)
As of March 31, 2015

As of June 30, 2015

Assets:Cash and deposits

96,51536,086

Call loans

186,500

105,300

Monetary claims bought
Money held in trust
Securities

870

856

34,31934,5545,240,955

5,380,323[2,061,294][1,968,071][ Local government bonds ][154,616][139,764][ Corporate bonds ][670,380][645,187][ Stocks ][664,735][687,892][1,607,208][1,838,646]

763,900

741,617[ Government bonds ][ Foreign securities ]Loans
Policy loans

63,311

62,794

Ordinary loans

700,588678,822

Tangible fixed assets

227,591

218,053

Intangible fixed assets

11,017

10,587

Reinsurance accounts receivable
Other assets
Allowance for possible loan losses
Total assets

105

79

52,123

61,142(1,948)(1,925)

6,611,952

6,586,674

As of March 31, 2015

Liabilities:
Policy reserves

5,545,647

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

As of June 30, 2015

5,523,078

21,30518,8905,475,030

5,430,322

49,31173,865110

103

Subordinated bonds

118,959

121,035

Other liabilities

55,98460,16815,851

7,406

Corporate income tax payable
Asset retirement obligations

3,001

3,017

Rest of the other liabilities

37,13149,744

Reserve for employees' retirement benefits

46,393

46,105Reserve for price fluctuation of securities

46,53447,233

Deferred tax liabilities

85,741

85,184

Deferred tax liabilities for revaluation reserve for land

14,787

14,764

5,914,159

5,897,673

Foundation funds

30,00030,000

Accumulated foundation funds redeemed

86,00086,000Total liabilities
Net assets:

Reserve for revaluation
Surplus
Legal reserve for future losses
Other surplus

112

112

143,548

135,213

2,582

2,742

140,966

132,470

Reserve for redemption of foundation funds

12,00018,000Reserve for dividend allowances

3,895

20,000

Accumulated fund for price fluctuation

31,00041,000Reserve for advanced depreciation of real estate for tax purpose

262

266

Other reserves

767

767

Unappropriated surplus
Total foundation funds, surplus and others

93,041

52,437

259,660

251,325

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

434,236433,837

Deferred valuation gains (losses) under hedge accounting

0

0

3,894

3,836

Total valuation and translation adjustments

438,131437,675

Total net assets

697,792

689,000

6,611,952

6,586,674

Revaluation reserve for land, net of tax

Total liabilities and net assets

6

Fukoku Mutual Life Insurance Company

4. Non-consolidated Statements of Operations(Millions of yen)Three months ended
June 30, 2014

Three months ended
June 30, 2015

Ordinary revenues:
Premium and other income[Premium income]Investment income[Interest, dividends and other income]

156,938

173,104[156,915][173,024]

36,35460,476[30,123][32,050][Gains from money held in trust, net]

[499]

[242]

[Gains from trading securities, net]

[2,344][8,161][Gains on sales of securities][1,560][18,067][Gains from separate accounts, net]

[1,809][1,914]

6,695

49,221[4,483][2,415]

Other ordinary revenues[Reversal of reserve for outstanding claims][Reversal of policy reserve]
Total ordinary revenues[－][44,708]

199,988282,801

Ordinary expenditures:
Claims and other payments

144,183

207,143[Claims][45,170][63,490][Annuities][37,815][48,433][Benefits][31,939][30,632][Surrenders][21,155][52,505][Other payments][8,010][11,977]

6,708

12

6,690

－

Provision for policy reserve and others
Provision for policy reserve

18

12

Investment expenses

Interest on accumulated dividends to policyholders

5,610

13,367[Interest expenses][1,054][1,118][Losses on sales of securities][Losses from derivative instruments, net]

[－]

[842]

[1,055][8,501]

Operating expenses

21,224

20,954

Other ordinary expenditures

6,012

5,196

Total ordinary expenditures

183,739

246,673

Ordinary profits

16,24836,127

4

1,356

4

1,356

15

114

Extraordinary gains:
Gains on disposal of fixed assets
Total extraordinary gains
Extraordinary losses:
Losses on disposal of fixed assets
Impairment losses

84

128

Provision for reserve for price fluctuation of securities

619

699

Total extraordinary losses

718

941

Surplus before income taxes

15,53436,542

2,760

8,339

Income taxes：
Current

(365)

(418)

Total income taxes

2,394

7,920

Net surplus for the period

13,13928,622

Deferred

7

Fukoku Mutual Life Insurance Company

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

II. Notes to Balance Sheets
1. Accounting Procedures Specific to Quarterly Financial Statements
As the proposal for appropriation of unappropriated surplus for the fiscal year ended March 31, 2015
was approved by the Board of Representative Member of Policyholders on July 2, 2015, it is includedin the non-consolidated balance sheet as of June 30, 2015.

2. Securities Lent under Lending Agreements
The amount of securities lent under lending agreements was ¥56,491 million as of June 30, 2015.

3. Reserve for Dividends to Policyholders
Changes in reserve for dividends to policyholders for the three months ended June 30, 2015 were as
follows:(Millions of yen)･･････････････････････

Balance at the beginning of current period
Transfer from surplus in previous fiscal year ････････････････････
Dividends paid in the current period ･･･････････････････････････････････････････････････････････････････････････
Increase in interest････････････････････････････
Balance at the end of current period¥ 49,311
36,698(12,156)12¥ 73,865

4. Issue of Subordinated Bonds
In accordance with a resolution passed by the Board of Directors on June 22, 2015, the Company
newly issued subordinated bonds amounting to US$500 million on July 28, 2015.

8

Fukoku Mutual Life Insurance Company

5. Breakdown of Ordinary Profits (Fundamental Profit)(Millions of yen)Three months ended
June 30, 2014

Three months ended
June 30, 2015

A

16,071

21,697

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

2,247
478
209
1,560
－
－
－
2,121
－
－
－
－
1,055
1,065
－
126
16,197
51
－
45
5
－
－
－
－
－
－
－
－
51
16,24823,911223
5,620
18,067
－
－
－
9,655
－
－
842
－
8,501
311
－
14,25635,953
176
－
176
－
－
1
－
－
1
－
－
－
174
36,127

Fundamental profit

Notes: 1. The following amounts in respect of gains / losses from money held in trust have been excluded from
capital gains / losses and included in fundamental profit due to their income nature (being interest anddividend income): ¥21million in respect of the three months ended June 30, 2014 and ¥18 million in respectof the three months ended June 30, 2015.
2. The following amounts in respect of gains / losses from trading securities have been excluded from
capital gains / losses and included in fundamental profit due to their income nature (being interest anddividend income): ¥2,135 million in respect of the three months ended June 30, 2014 and ¥2,541million in respectof the three months ended June 30, 2015.

9

Fukoku Mutual Life Insurance Company

6. Solvency Margin Ratio(Millions of yen)
As of March 31, 2015

Total solvency margin(A)

As of June 30, 2015

1,397,205

1,427,029

Foundation funds and surplus

220,996

240,482

Reserve for price fluctuation of securities

46,53447,233

Contingency reserve

142,523

142,346

1,403

1,379

Net unrealized gains on available-for-sale securities x 90%

549,280548,776

Net unrealized gains on real estate x 85%

99,17398,082

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

197,683

199,250

Qualifying subordinated debt

118,959

121,035－－

Deductible items(19,000)(19,000)

Others39,65247,442238,962

247,635

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( R1  R8 )2  R2  R3  R7 2  R4

(B)

Insurance risk

R1

25,49425,232

3rd sector insurance risk

R8

9,575

9,581

Assumed investment yield riskR 2

35,85135,837

Minimum guarantee risk

R7

0

0

Investment risk

R3

195,142

203,793

Business risk

R4

5,321

5,488

1,169.3%

1,152.5%

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

Notes: 1. The figures above as of March 31, 2015, are calculated based on Articles 86 and 87 of the Enforcement Regulation ofNotes: 1. the Insurance Business Law and Ministry of Finance No. 50, 1996. Figures as of June 30, 2015, are calculated
Notes: 1. pursuant to these standards.
2. "Deductible items" represent the capital increase to the subsidiary, Fukokushinrai Life Insurance Co., Ltd.
3. "Minimum guarantee risk" is calculated by standard method.

10

Fukoku Mutual Life Insurance Company

7. Status of Separate Account(1) Separate Account Assets by Products(Millions of yen)
As of June30, 2015

As of March 31, 2015
AmountAmountIndividual variable insurance－－

Individual variable annuities

149

126

Group annuities

82,85582,411

Total

83,00482,537(2) Policies in Force(i) Individual Variable Insurance
The Company has not sold the individual variable insurance.

(ii) Individual Variable Annuities(Millions of yen)
As of March 31, 2015

As of June 30, 2015

NumberAmountNumberAmountIndividual variable annuities

43

136

37

112

Total

43

136

37

112

11

Fukoku Mutual Life Insurance Company

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

(Millions of yen)Three months ended
June 30, 2014

Three months ended
June 30, 2015

Ordinary revenues

237,872

300,176

Ordinary profits

16,84536,739Net surplus attributable to the parent company

13,27828,754Comprehensive income

45,53827,921

Notes: From the three months ended June30, 2015, “Net surplus” is presented as
Notes: “Net surplus attributable to the parent company.”

As of March 31, 2015

As of June 30, 2015

Total assets

8,326,588

8,335,101

Solvency margin ratio

1,195.7%

1,178.5%(2) Scope of consolidation and application of equity method
Number of consolidated subsidiaries: 5
Number of unconsolidated subsidiaries accounted for under the equity method: 0
Number of affiliates accounted for under the equity method: 0

12

Fukoku Mutual Life Insurance Company

(3) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2015

As of June 30, 2015

Assets:Cash and deposits

154,319

96,505

Call loans

186,500

105,300

Monetary claims bought
Money held in trust
Securities

870

856

34,31934,554

6,881,578

7,051,789

Loans

767,293744,950

Tangible fixed assets

227,919

218,396

Intangible fixed assets

15,323

14,671

Agency receivables
Reinsurance receivables
Other assets
Deferred tax assets
Allowance for possible loan losses
Total assets

4

1

107

92

59,65969,092640

815(1,948)(1,925)8,326,588

8,335,101

As of March 31, 2015

As of June 30, 2015

7,234,120

7,245,073

Liabilities:
Policy reserves
Reserve for outstanding claims

23,501

21,5207,160,599

7,149,198

49,31173,865707

489

Agency payables

377

508

Reinsurance payables

125

110

Subordinated bonds

118,959

121,035

Other liabilities

59,24063,940Net defined benefit liabilities

50,69150,201

Reserve for price fluctuation of securities

55,17755,961

Deferred tax liabilities

84,52484,028Deferred tax liabilities for revaluation reserve for land

14,787

14,764

7,618,005

7,635,626

Foundation funds

30,00030,000

Accumulated foundation funds redeemed

86,00086,000112

112

Consolidated surplus

145,942

137,739

Total foundation funds, surplus and others

262,054

253,851

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

440,109439,21200Revaluation reserve for land, net of tax

3,894

3,836

Foreign currency translation adjustment

(52)

(124)

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

Total liabilities
Net assets:

Reserve for revaluation

Deferred valuation gains (losses) under hedge accounting, net of tax

Accumulated remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets(3,000)(2,850)440,951

440,075

5,576

5,548

708,582

699,475

8,326,588

8,335,101

Notes: From the three months ended June 30, 2015, “Minority interests” are presented as “Non-controlling interests.”

13

Fukoku Mutual Life Insurance Company

(4) Consolidated Statements of Operations and Comprehensive Income[Consolidated Statements of Operations](Millions of yen)Three months ended
June 30, 2014

Three month ended
June 30, 2015
218,228

Ordinary revenues:
Premium and other income

189,074

Investment income

42,123

66,253[Interest, dividends and other income][35,821][37,805][Gains from money held in trust, net]

[499]

[242]

[Gains from trading securities, net]

[2,344][8,161][18,092][Gains on sales of securities][1,632][Gains from separate accounts, net]

[1,809][1,914]

Other ordinary revenues

6,674

15,694[Reversal of reserve for outstanding claims][4,359][1,981][－][11,401]

237,872

300,176

Claims and other payments

157,626

220,708[Claims][46,166][64,524][Annuities][37,975][48,667][Reversal of policy reserve]
Total ordinary revenues
Ordinary expenditures:[Benefits][34,346][32,921][Surrenders][30,995][62,468][Other payments][8,017][11,993]

Provision for policy reserve and others

27,64912

Provision for policy reserve

27,631－18

12Interest on accumulated dividends to policyholders

00Investment expenses

Interest on accumulated dividends to policyholders (subsidiary)

5,349

13,053[Interest expenses][1,058][1,121][Losses on sales of securities]

[－]

[842]

[Losses from derivative instruments, net]

[1,055][8,501]
23,805

Operating expenses

23,754

Other ordinary expenditures

6,646

5,857

Total ordinary expenditures

221,026

263,436

Ordinary profits

16,84536,739Gains on disposal of fixed assets

4

1,356

Total extraordinary gains

4

1,356

Losses on disposal of fixed assets

15

114

Impairment losses

84

128

Provision for reserve for price fluctuation of securities

698

784

Total extraordinary losses

797

1,026

Extraordinary gains:

Extraordinary losses:

Provision for reserve for dividends to policyholders (subsidiary)
Surplus before income taxes

139

120

15,912

36,9488,510

Income taxes:
Current

2,981

Deferred

(394)

(371)

Total income taxes

2,586

8,139

Net surplus

13,32528,809Net surplus attributable to non-controlling interests
Net surplus attributable to the parent company

46

55

13,27828,754

Notes: From the three months ended June 30, 2015, “Net surplus before minority interests,” “Minority interests”
Notes: and “Net surplus” are presented as “Net surplus,” “Net surplus attributable to non-controlling interests” andNotes: “Net surplus attributable to the parent company,” respectively.

14

Fukoku Mutual Life Insurance Company

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

Net surplus

Three months ended
June 30, 2014

Three month ended
June 30, 2015

13,32528,809Other comprehensive income

32,212(887)

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

32,127(966)

Deferred valuation gains (losses) under hedge accounting, net of tax

(0)

(0)

Foreign currency translation adjustment

(36)

(71)

121

150

Comprehensive income

Remeasurements of defined benefit plans, net of tax

45,53827,921

Comprehensive income attributable to the parent company

45,401

27,936136(14)Comprehensive income attributable to non-controlling interests

Notes: From the three months ended June 30, 2015, “Net surplus before minority interests,” “Minority interests” are presented
Notes: as “Net surplus” and “Comprehensive income attributable to non-controlling interests,” respectively.

15

Fukoku Mutual Life Insurance Company

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

II. Notes to Balance Sheets
1. Accounting Changes and Error Corrections and its Implementation
Effective from the first quarter of the current fiscal year, the Company has applied “AccountingStandard for Business Combinations” (ASBJ Statement No. 21, September 13, 2013), “AccountingStandard for Consolidated Financial Statements” (ASBJ Statement No. 22, September 13, 2013),“Accounting Standard for Business Divestitures” (ASBJ Statement No. 7, September 13, 2013), andother applicable accounting standards. As a result, for subsidiaries under the ongoing control of theCompany, differences caused by changes in the Company’s ownership interests in such subsidiaries
are recorded as consolidated surplus, and the Company changed the method used to record
acquisition-related costs so that such amounts are recognized as expenses for the fiscal year in which
they are incurred. For business combinations carried out on or after April 1, 2015, the accounting
method was changed to one in which the reviewed acquisition cost allocation resulting from thefinalization of the tentative accounting treatment is reflected in the quarterly consolidated financial
statements for the fiscal quarter in which the business combination occurs. In addition, changes havealso been made in the presentation of quarterly net surplus and other items, as well as the presentationof minority interests, which has been changed to non-controlling interests.
Application of the Accounting Standard for Business Combinations and other applicableaccounting standards is in line with the transitional measures provided in Paragraph 58-2 (4) of the
Accounting Standard for Business Combinations, Paragraph 44-5 (4) of the Accounting Standard forConsolidated Financial Statements, and Paragraph 57-4 (4) of the Accounting Standard for Business
Divestitures. These changes are effective as of April 1, 2015, and will be applied to future consolidated
financial statements.
Owing to these change, there was no impact on ordinary profits or surplus before income taxes forthe first quarter of the fiscal year ending March 31, 2016. There was no impact on consolidated surplus
as of June 30, 2015.

2. Accounting Procedures Specific to Quarterly Financial Statements
As the proposal for appropriation of unappropriated surplus for the fiscal year ended March 31, 2015
was approved by the Board of Representative Member of Policyholders on July 2, 2015, it is includedin the consolidated balance sheet as of June 30, 2015.

3. Securities Lent under Lending Agreements
The amount of securities lent under lending agreements was ¥56,491 million as of June 30, 2015.

16

Fukoku Mutual Life Insurance Company

4. Reserve for Dividends to Policyholders
Changes in reserve for dividends to policyholders for the three months ended June 30, 2015 were as
follows:(Millions of yen)

Balance at the beginning of current period ･･････････････････････
Transfer from surplus in previous fiscal year ････････････････････
Dividends paid in the current period ･･･････････････････････････････････････････････････････････････････････････
Increase in interest････････････････････････････
Balance at the end of current period¥ 49,311
36,698(12,156)12¥ 73,865

5. Reserve for Dividends to Policyholders (Fukokushinrai Life Insurance Co., Ltd.)
Changes in reserve for dividends to policyholders for the three months ended June 30, 2015 were as
follows:(Millions of yen)

Balance at the beginning of current period ･･････････････････････
Dividends paid in the current period ･･･････････････････････････････････････････････････････････････････････････
Increase in interest････････････
Provision for reserve for dividends to policyholders････････････････････････････
Balance at the end of current period

¥ 707
(337)
0
120
¥ 489

6. Issue of Subordinated Bonds
In accordance with a resolution passed by the Board of Directors on June 22, 2015, on July 28, 2015,
the Company newly issued subordinated bonds amounting to US$500 million.

III. Notes to Statements of Operations
1. Depreciation and Amortization of Goodwill
For the three months ended June 30, 2015, the total amount of depreciation and depreciation of realestate for rent and other assets was ¥2,932 million and the amount of amortization of goodwill was¥190 million.

17

Fukoku Mutual Life Insurance Company

(5) Consolidated Solvency Margin Ratio(Millions of yen)
As ofMarch 31, 2015

Total solvency margin

(A)

As of
June 30, 2015

1,441,649

1,471,243

Foundation funds and surplus

227,256

246,685

Reserve for price fluctuation of securities

55,17755,961

Contingency reserve

144,417

144,276

－

－

1,403

1,379

Net unrealized gains on available - for - sale securities x 90%

558,124

556,922

Net unrealized gains on real estate x 85%

99,17398,082Sum of unrecognized actuarial differences and unrecognized prior service cost

(4,217)(4,005)

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

199,957

201,553

Qualifying subordinated debt

118,959

121,035

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－－

Deductible items－－

41,39749,352

241,122249,659

Catastrophe loss reserve
Allowance for possible loan losses

OthersTotal amount of risk( ( R1 2  R5 2  R8  R9 ) 2  ( R2  R3  R7 ) 2  R4  R6

(B)

Insurance risk

R1

26,07425,816

General insurance risk

R5

－

－

Catastrophe risk

R6

－

－

3rd sector insurance risk

R8

9,689

9,695

Small amount and short-term insurance riskR9－－

Assumed investment yield risk

R2

36,23636,224

Minimum guarantee risk

R7

0

0

Investment risk

R3

196,781205,297

Business risk

R4

5,375

5,540

1,195.7%

1,178.5%

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

Notes: 1. The figures above as of March 31, 2015, are calculated based on Articles 86-2 and 88 of the Enforcement Regulation of the Insurance
Notes: 1. Business Law and Notification of the Financial Services Agency No.23,2011. Fugures as of June 30, 2015, are calculated pursuant toNotes: 1. these standards.
Notes: 2. "Minimum guarantee risk" is calculated by standard method.

18

Fukoku Mutual Life Insurance Company