CHAPTER 01

Working toward theT&D Insurance Group’sVision for Society

T&D Holdings |5| Integrated Report 2022

Working toward the T&D
Insurance Group’s Visionfor Society

Try & Discover for
Creation ofShared Value

Further Advancementof Capital and Risk
Management

Corporate
Governance

T&D Insurance Group’sBusinessSupplementary Materials
and Corporate Data

Starting Point for the Creation of Shared Value

Try & Discover“Try & Discover” means always trying toreach the next stage or higher level as well
as discovering even further stages and higherlevels to tackle without being satisfied withthe status quo. Continuing to grow throughthe repetition of this cycle is the spirit of theT&D Insurance Group. With this spirit, we
aim to be a group that broadly contributes
to people and society by creating value thatsincerely satisfies all those who support us,including by providing the best products andservices to our customers and enhancing
corporate value for our shareholders.

With our “Try & Discover” motto for creating value, we aim to be a group that
contributes to all people and societies.

Pet & Family Insurance
We aim to be a company that

We shape the future together

We aim to be the company of

We aim to be an asset management

We provide insurance products

We will grow and develop withsupports the healthy long lives

with SMEs with a caring heart andchoice for customers and partners

company that builds long-term trustingthat enable families andour investee companies whileof many customers

the power to create connections

through our courteous approach

relationships with our clientsand moves forward with them

their pets to live withpeace of mind

realizing dreams together

T&D Holdings |6| Integrated Report 2022

T&D Holdings |7| Integrated Report 2022

Working toward the T&D
Insurance Group’s Visionfor Society

Try & Discover for
Creation ofShared Value

Further Advancementof Capital and Risk
Management

CorporateGovernance

Creation of Shared Value (Social Value)
Daido Life

Shaping the future together withSMEs with a caring heart andthe power to create connections
Starting Up

Asako Hirooka

Daido Life was founded in 1902 centeredon Kajimaya through the merger ofAsahi Life (formerly Shinshu Life InsuranceCo., founded in 1895), Gokoku Life (foundedin 1896), and Hokkai Life (founded in 1898),
under the corporate philosophy of “Customer-oriented and Sound Management.” Thecompany name derives from the Japanesephrase meaning “put aside minor differences
for the greater good.”
Inheriting the spirit of one of its founders,
Asako Hirooka, a female businesswoman of
the Meiji period (1868-1912), the company
has continued its business activities since
its establishment while always aiming toearn a high level of trust from customers. In
the 1970s, the company positioned “sales ofindividual term life insurance in cooperation
with tie-up organizations in the SME market”
as its core business, and continued to grow byevolving its business model, which other companies cannot easily imitate, in accordancewith the times. The company celebrated its
120th anniversary in July 2022.

For many years, Daido Life has been protecting SMEs by offeringterm life insurance (death benefit) as a partner-specific product for
tie-up organizations, which ensures more substantial benefits atreasonable premiums.
In addition, the company provides full-range protection thatcombines death benefit and disability benefit insurance. For
example, it has rolled out insurance products that cover the risksof being unable to work due to critical illnesses and serious physical disability owing to illness or accident, including J-type (criticalillness insurance) and T-type (disability protection insurance).
In January 2022, the company further strengthened its lineup of
full-range protection with the launch of Kaisha Minnade KENCO+,
a health-promotion type of term-life insurance covering severe inability to work that integrates the functions of “disease prevention
through promotion of health management” and “preparednessfor unexpected retirement.”

Supplementary Materials
and Corporate Data

Taiyo-LifeSupporting the healthy
long lives of customers

Starting UpTaiyo Life was founded in Nagoya, Aichi
Prefecture in 1893 as Nagoya Life Insurance Co., Ltd. It moved its headquarters toTokyo in 1908, changed its name to Taiyo Life
Insurance Company, and has been well-known
to many people.
After World War II, the company continued its
business activities by establishing a businessmodel in which female in-house sales representatives, mostly housewives, visited homes inpairs. In recent years, the company has continued to grow by changing its business model in
response to the times, such as by integratingin-person and remote services through theutilization of digital technology. It will mark its
130th anniversary in May 2023.

In response to the social issue of “living a long and healthy life,”
Taiyo Life has been offering products that are ahead of their time.
In addition to Himawari Dementia Prevention Insurance, whichhelps people deal with dementia positively and live out their golden years with peace of mind, the company also sells products thatcover cancer and serious illnesses.
In terms of services, the company offers Kaketsuke-Tai Service,in which its internal staff with specialized knowledge directly support customers’ benefit claim procedures, as well as services fordementia prevention (MCI Screening Plus) and disease prevention(AminoIndex® Risk Screening).
By integrating products and services, the company is delivering
new, industry-leading coverage.

Himawari Dementia Prevention Insurance

Kaketsuke-Tai

T&D Financial Life
Starting UpT&D Financial Life began its operations as
an insurance company to carry out the T&D
Insurance Group’s strategy for agent channels
such as financial institutions, in anticipationof growing asset formation needs centered on
variable annuities, in line with the lifting of theban on over-the-counter sales at banks.

Sow happiness, make change with boldness.

T&D Insurance Group’sBusiness

Aiming to be the company ofchoice for customers and partners
through its courteous approach
T&D Financial Life offers products that meet the diversifying needsof customers, such as foreign exchange rate-linked whole life
insurance which is “increased,” “used,” “bequeathed,” and “setaside,” and variable life insurance (hybrid series) that supports
building assets through one’s own efforts.

Shogai Premium World 5

Hybrid Tsumitate Life

We have been carrying out and will continue to carry out our vision.
T&D Holdings |8| Integrated Report 2022

T&D Holdings |9| Integrated Report 2022

Working toward the T&D
Insurance Group’s Visionfor Society

Creation of Shared Value (Financial Value)

Further Advancementof Capital and Risk
Management

Group MCEV*

Fiscal year
ended March
31, 2022

Enhancing financial value

Try & Discover for
Creation ofShared Value

3,448.3

CorporateGovernance

T&D Insurance Group’sBusiness

Value of new business

166.9billion yen

Supplementary Materials
and Corporate Data

Group adjusted profit

39.2billion yen

billion yen*Base excluding valuation gains/losses, etc. related to Fortitude

Fiscal year ended March 31

Trend of MCEV (left)
Value of new business (right)(¥ billions)(¥ billions)Group adjusted profit (right)

3,000

150

April 1, 2004

Establishment ofT&D Holdings, Inc.
2,000

100

1,000

50002004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

MCEV and Value of New Business: Values up to fiscal 2005 are based on TEV, those between fiscal 2006 and fiscal 2011 on EEV, and those from fiscal 2012 on MCEV. Ultimate Forward Rate (UFR) isapplied from fiscal 2019 for the MCEV calculation. Group adjusted profit: Adjusted net income up to fiscal 2018. Group adjusted profit from fiscal 2019.

Building revenue base at the global network

2022

Additional investment in our overseas affiliate Fortitude Group Holdings, LLC.

Pursuing further investment opportunities

By investing in the closed book business with a high affinity to the life insurance business anda potential growth market, the Group aims to contribute to profit expansion with enhanced
capital efficiency for the purpose of diversification and optimization of its business portfolio.
Going forward, in addition to Fortitude Group Holdings, the Group will seek new investment
opportunities that could have a risk dispersion effect.

The T&D Insurance Group took an equity stake as a strategic partner alongside
Carlyle and AIG in June 2020. Fortitude Group Holdings has been working on
growth initiatives, including the acquisition of PALAC (now FLIAC), a subsidiary ofU.S. insurance group Prudential. We will continue to consider further collaboration
with Fortitude Group Holdings in the development and expansion of our businessin Japan.

Characteristics of Fortitude
Group Holdings, LLC• Fortitude owns Fortitude Re, aBermuda-based reinsurer; Fortitude
International Re; and FLIAC, an insurancecompany based in Arizona in the U.S.
• Fortitude Re underwrites reinsurance forsome in-force policies no longer sold by AIG.

History of T&D Holdings’ Corporate Governance
Number of outside directors (bar graph) / Ratio of outside directors (line graph)
Outside directors

April
Establishment ofT&D Holdings, Inc.

Female outside directors within the total

June
Introduction of the executive
officer system, clarification ofthe responsibilities foroversight and execution.

June
Introduction of stockcompensation-type stock
options as an executive
compensation system.

June
Increase in the numberof outside directors
from one to two.

18%

January
Establishment of the Nomination andCompensation Committee.
AugustCommencement of the evaluation of theeffectiveness of the Board of Directors.
October
Establishment and announcement of the
Basic Policy on Corporate Governance.

June
Increase in the numberof outside directors fromtwo to three.

June
Introduction of trust-type stockcompensation [the Board
Incentive Plan (BIP) Trust] as an
executive compensation system.

June
Transition to a company with an
Audit and Supervisory Board.
Increase in the number of outside
directors from three to five.

* Abolition of stock compensation-type
stock options.

25%

25%

3

3

11%

10%

2

2

1

1

1(1)

(1)

(1)

2004

2006

2012

2013

2015

2017

5

5

5(1)

(1)

(1)

(1)

2018

2020

2021

2022

Building a robust business platform

To enhance sustainable financial value
T&D Holdings |10| Integrated Report 2022

42%

42%

36%

18%

13%

June
Change in the number of insidedirectors from nine to seven to furtherstrengthen agile decision-making andoversight function.

T&D Holdings |11| Integrated Report 2022

Working toward the T&D
Insurance Group’s Visionfor Society

Try & Discover for
Creation ofShared Value

Further Advancementof Capital and Risk
Management

Corporate
Governance

T&D Insurance Group’sBusiness

The T&D Insurance Group’s Value Creation Process

Supplementary Materials
and Corporate Data

Creation of shared value
KPIs of the Long-Term Vision (targets for fiscal 2025)

Identifying important social issues
We identify the social issues to be addressed
through our businesses by examining the SDGs,social changes, technology innovation, our Groupbusiness models, and other sources.

Identifying the social issues to be addressed
through our businesses

Competitive advantage sources

Sow happiness, make change with boldness.

I. Strengthening of Core Business

P.45

SDGs

Changes in the social environment• Increasing needs to make self-provision
for pension, medical care, and nursingcare• Increasing social inequality• Increasingly diverse households

Technology innovation• Advances in IT technology• Advances in medical technology

Human rights issues• Emergence of new human rights issuesAgainst a backdrop of diversified
lifestyles, insurance products thatsatisfy various needs of customers
are required and responses totechnology innovation are also
important since there are a wide
range of routes of taking out
insurance depending on thepreferences of customers.
Social and economic disparities havebeen widening due to the COVID-19
pandemic. Emergence of new humanrights issues.

Diverse human resourcesIntellectual
Capital
P.60

Development of a widearray of products andmanagement know-how

Social andRelationship
CapitalP.62

Increased climate change risks
IssuesRise in average temperature

Increase in and intensification ofnatural disasters

Transition to a society with low or
net-zero carbon emissions

Strong bond with customers
and partner companies

Risk awareness
Increase in various illness risks, suchas those of heat strokes, heat death,and respiratory diseases due to anincrease in heat stress driven byrising temperatures.

Rise in the number of injuries andfatalities due to natural disasters
because of an increase in extreme
weather events such as typhoons
and floods.

Natural Capital

Further advancement of capital and risk management

P.52Now, in the era of the 100-year life,
due to the aging population, more
people are suffering from chronic
diseases and dementia, and there are
increasing economic burdens on eachhousehold and society every year.

¥130 billion

P.27

Adjusted ROE

FY2021 (actual)

Human Capital

Further decline in birthrate, aging
population, and population decline

Target¥39.2 billion

Core business (life insurance business)
Robust financial baseRisk awareness

FY2021 (actual)(¥116.0 billion)*

Financial Capital

17 goals 169 targets

IssuesGroup adjusted profit

Business activities (implementation of the Group Long-Term Vision)

2.7%(7.8%)*

P.28

P.30

Target

8.0%

Customers

P.94

Value of new business

Shareholders
Distribution ofresources

Distribution ofresourcesGroup-wide value up

P.98

Reinforcing sectors¥166.9 billion

FY2021 (actual)

P.98

P.38

Growing sectors

New business¥200 billion

7.0%

Employees

Target7.5%
Society
Customer satisfaction

II. Diversification and Optimization of Business Portfolio

P.36

III. Further Advancement of ERM

IV. Promoting Integrated Group Management

FY2021 (actual)

P.39

Over target level
Achieved(Upgrading Capital Management)

V. SDGs Management and Creation of Value

P.45

TargetROEV• Build a digital
customer platform• CVC

Pet & Family Insurance

P.98

FY2021 (actual)

P.40

P.119

TargetMinimum
FY 2020level

Business Partners

Help mitigate and adapt to climate change

Promote healthy and abundant lives for all people

Employee satisfaction

P.66
Provide workplace environments that enable all people
to participate actively

Invest to help build a sustainable society

FY2021 (actual)

Over target level
Achieved

Protection of the global
environment

P.118

Increase in business costs due totighter regulations on greenhousegas (GHG) emissions and theintroduction of a carbon tax.

Corporate governanceTargetMinimum
FY 2020level
CO2 emission volume

P.78
FY2021 (actual)

We will create shared value by leveraging our characteristics and strengths

Compared to FY2013
31.0% reduction
P.25

TargetCompared toFY2013
40% reduction

while enhancing our capital and risk management.
T&D Holdings |12| Integrated Report 2022

T&D Holdings |13| Integrated Report 2022

*Figures exclude the impact of Taiyo Life’s
reinsurance (news release dated March 31, 2022).

Working toward the T&D
Insurance Group’s Visionfor Society

Try & Discover for
Creation ofShared Value

Further Advancementof Capital and Risk
Management

CorporateGovernance

T&D Insurance Group’sBusinessSupplementary Materials
and Corporate Data

Characteristics of T&D Insurance Group
1. Specialized Markets

2. Unique Channels

3. Innovative Products

Taiyo Life: Household market

Taiyo Life

Taiyo Life

In-house sales representatives carry out individual home visits to help
provide necessary coverage through in-person means

In addition to the in-house sales representativechannels using in-person means, sales channels
using remote means such as the internet are being
developedSells cancer/critical illness prevention insurance to facilitate theearly prevention and detection of cancer and critical illnesses, andhelp customers lead long and healthy lives

Daido Life

Health-promoting insurance that integrates prevention and preparedness functions
Launched Kaisha Minnade KENCO+ to support the promotion ofhealth management at SMEs

Daido Life: SME market
Provides full coverage and services to SMEs,
which account for 99% of Japanese companies,
to help them solve their business challenges

Two strong sales channels (tax accountant agent
channel and in-house sales representative channel)
thanks to solid relationships with tie-up organizations

T&D Financial Life: Independent insurance agent market

Household market

In-house sales representatives

Daido Life

SME market

In-house sales representatives/
Agents (tax accountants, etc.)

T&D Financial Life

Independent insurance
agent market

Independent insurance agents(financial institutions, insurance shops)

Closed book business

T&D Asset Management

T&D United Capital

Supporting customers’ wealthcreation through investment

Investing in new business areasMake progress toward theGroup’s goal of diversifying andoptimizing its business portfolio
by investing in new businessareas with a high affinity with life
insurance, such as closed bookbusiness

Led by its principle of “Make aDifference,” T&D Asset Management
strengthens its asset management
capabilities through partnerships
with Group companies and businessalliances with quality overseas asset
management institutions to provide
distinctive products and services thatmeet customer needs

Sells differentiated, competitive products such as Hybrid Asset Life,
which supports wealth creation through the integration of investment trusts and life insurance

Diverse independent insurance agent channels,
such as banks, securities firms, and insurance shops

Taiyo Life

Cancer/critical illness prevention Insurance

Kaisha Minnade KENCO+

T&D Financial Life

T&D Financial Life

Provides coverage through independent insurance agents that handle
the products of multiple insurance companies

Asset management business

Daido Life

Comprehensive coverage including death benefit andmedical/nursing care products

DXDigitalTransformation

Term life insurance/Disability benefit insurance, etc.
Savings-type products (foreign-currency linked type insurance,variable insurance, etc.)/Protection-type products(income protection insurance, etc.)

Non-life insurance business

Pet & family insurance
Bringing peace of mind to customers’ lives
through pet insuranceWith the idea that a pet is a member ofthe family becoming increasingly popular,advancing veterinary medicine is becoming
more sophisticated and expensive. Pet &Family Insurance provides products thatcover a wide range of costs occurred whena pet becomes injured or ill—not only
surgery and hospitalization, but full coverage
extending even to ambulatory treatment

Establishing a Business Model with High Uniqueness and Specialization
Through Market Strategy Integrating Markets, Channels, and Products
T&D Holdings |14| Integrated Report 2022

T&D Holdings |15| Integrated Report 2022