Consolidated
Financial Statements2023

Consolidated Financial Statements
Consolidated Balance Sheet¥ millions

As of March 31,

2022

2023

890,674¥ 1,140,802

Assets:Cash and deposits
Call loans
Monetary claims purchased

504

543

170,920

158,873

Monetary trusts

1,324,898

1,217,451

Securities (Notes 8, 12 and 13)

12,948,127

11,784,186

Loans (Notes 3 and 7)

1,695,200

1,757,818

372,668

382,430

Land (Note 2 (13))

212,115

216,508

Buildings

151,839

154,701

Lease assets

1,043

726

Construction in progress

3,539

6,671

Other tangible fixed assets

4,130

3,822

35,13834,38633,892

33,162

Tangible fixed assets (Note 4)

Intangible fixed assets
SoftwareLease assets
Other intangible fixed assets
Due from agencies

89

64

1,157

1,159

396

424

Reinsurance receivable

34,29844,504

Other assets (Note 13)

340,540

181,432

Net defined benefit asset

2,851

2,744

505

71,282(3,316)(3,003)¥17,813,408¥16,773,877

Deferred tax assets
Reserve for possible loan losses
Total assets

1¥

T&D Holdings Consolidated Financial Statements 2023

¥ millions

As of March 31,

2022

2023

¥14,505,391¥14,055,870

Liabilities:
Policy reserves
Reserve for outstanding claims
Policy reserve
Reserve for policyholder dividends (Note 6)

72,68375,56914,359,852

13,910,695

72,856

69,605Due to agencies

1,676

2,355

Reinsurance payable

13,917

27,605

Short-term debentures
Bonds (Note 9)
Other liabilities (Notes 10 and 13)

4,999

5,999

157,000

120,000

1,413,188

1,253,626

305

302

Provision for share-based remuneration

1,221

1,425

Net defined benefit liability

42,14540,81848

62

Reserves under the special laws

259,979

267,329

Reserve for price fluctuations

259,979

267,329

Provision for bonuses to directors and audit and supervisory committee members

Provision for directors’ and audit and supervisory committee members’ retirement benefits

Deferred tax liabilities

19,538342

Deferred tax liabilities on land revaluation (Note 2 (13))

4,488

4,456

16,423,901

15,780,196
207,111

Total liabilities
Net assets:
Capital stock

207,111

Capital surplus

64,00064,040Retained earnings

670,203504,160

Treasury shares(43,013)(68,361)

Total shareholders’ equity

898,301

706,952

Valuation difference on available-for-sale securities

509,632

274,861

Deferred gains (losses) on hedging instruments(2,527)

161

Revaluation reserve for land (Note 2 (13))(35,062)(34,256)

Foreign currency translation adjustments

10,90635,070Debt value adjustments of foreign subsidiaries and affiliates
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets

—

3,810

482,949

279,647

659

570

7,596

6,511

1,389,506

993,681¥17,813,408¥16,773,877

See notes to consolidated financial statements.

T&D Holdings Consolidated Financial Statements 2023

2

Consolidated Statement of Operations¥ millions

Years ended March 31,

2022

2023

Ordinary revenues¥2,614,377¥3,214,110

1,781,952

2,178,203

476,904

500,793

Interest, dividends and income from real estate for rent

319,845

324,219

Gains from monetary trusts, net

100,238

17,885

Income from insurance premiums
Investment income

Gains on investments in trading securities, net
Gains on sales of securities
Gains on redemption of securities
Foreign exchange gains, net
Reversal of reserve for possible loan losses
Other investment income

323—

23,794125,014417

369

28,152

29,599

—

268

2,498

3,437

1,634

—

Other ordinary income

338,770

535,113Equity in earnings of affiliates

16,749—2,557,348

3,288,255

2,174,187

2,547,969

Insurance claims

410,161

411,269

Annuity payments

280,766

311,365

Insurance benefits

152,729

194,533

Surrender payments

421,270

620,847

Other payments

88,461

106,522

Reinsurance premiums

820,798

903,432

1,945

2,902

1,929

2,886

Gains on separate accounts, net

Ordinary expenses
Insurance claims and other payments

Provision for policy and other reserves
Provision for reserve for outstanding claims

16

15

Investment expenses

82,332

191,076

Interest expenses

1,690

1,723

—

369

Losses on sales of securities

25,06951,980Devaluation losses on securities

2,103

3,920

Losses from derivatives, net

30,61885,195

Provision for reserve for possible loan losses

99—

Write-off of loans

22Interest portion of reserve for policyholder dividends

Losses on investments in trading securities, net

Depreciation of real estate for rent

5,871

5,750

Other investment expenses

16,87741,557—

577

Operating expenses

229,279

251,301

Other ordinary expenses

69,602

77,621

Losses on separate accounts, net

Equity in losses of affiliates
Ordinary profit (loss)

217,383—¥

57,029¥(74,144)(continued)

3

T&D Holdings Consolidated Financial Statements 2023

¥ millions

Years ended March 31,

Extraordinary gains

2023

2022

¥

467

¥

1,425

Gains on disposal of fixed assets

347

1,271

State subsidy

120

151

Other extraordinary gains—

2

10,283

8,875

1,538

1,164

Extraordinary losses
Losses on disposal of fixed assets
Impairment losses (Note 14)
Provision for reserve for price fluctuations
Other extraordinary losses

31

87

8,593

7,350

120

272

Provision for reserve for policyholder dividends

24,284

22,378

Income (loss) before income taxes

22,928(103,972)

Income taxes (current)

3,730

34,605

Income taxes (deferred)

4,779(6,806)

Total income taxes

8,510

27,799Profit (loss)

14,418(131,771)

Profit attributable to non-controlling interests
Profit (loss) attributable to owners of parent

237

378

¥14,180¥(132,150)

Consolidated Statement of Comprehensive Income¥ millions

Years ended March 31,

Profit (loss)

2022

2023

¥ 14,418¥(131,771)(61,981)(219,166)

153

2,688

Other comprehensive income:
Valuation difference on available-for-sale securities
Deferred gains (losses) on hedging instruments
Foreign currency translation adjustments
Share of other comprehensive income of associates accounted for using the equity method
Total other comprehensive income (Note 15)
Comprehensive income

12

13

11,317

12,292(50,498)(204,171)¥(36,079)¥(335,943)(36,465)(336,257)

385

314

(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests
See notes to consolidated financial statements.

T&D Holdings Consolidated Financial Statements 2023

4

Consolidated Statement of Changes in Net Assets¥ millions
Shareholders’ equity

Accumulated other comprehensive income

Year ended March 31,
2022

Capital stock

CapitalsurplusRetainedearnings

Total
Treasury shareholders’equitysharesBalance at the beginningof the year

¥207,111¥125,260¥686,525¥(58,882)

Valuationdifference
Deferredon available- gains (losses)on hedging
for-sale
instruments
securities¥960,015¥574,292¥(2,681)Landrevaluation

Foreigncurrencytranslation
adjustments

Total
accumulated
othercomprehensive income

Subscription
rights toshares

Noncontrollinginterests

Total net
assets¥(35,018)¥ (2,951)¥533,641¥689¥7,449¥1,501,796

Changes in the period
Dividends(30,549)(30,549)(30,549)

Profit attributable toowners of parent

14,18014,18014,180(45,482)(45,482)(45,482)

Purchase oftreasury shares
Disposal oftreasury shares

(4)

95

91

91

Retirement oftreasury shares(61,256)

61,256——

Reversal ofland revaluation

44

44

44

Change of scope of
consolidation

1

1

1

Net changes of
items other thanshareholders’ equity
Total changes in the period
Balance at the end of
the year(64,659)

153

(44)

13,857(50,692)

(29)

146

(50,575)—(61,260)(16,322)

15,869(61,713)(64,659)

153

(44)

13,857(50,692)

(29)

146

(112,289)¥207,111¥ 64,000¥670,203¥(43,013)¥898,301¥509,632¥(2,527)¥(35,062)¥10,906¥482,949¥659¥7,596¥1,389,506¥ millions
Shareholders’ equity

Year ended March 31,
2023

Capitalstock

Balance at the beginningof the year

¥207,111

CapitalsurplusRetainedearnings

Accumulated other comprehensive income

TreasurysharesTotalshareholders’ equity

Valuation
Deferreddifference
on available- gains (losses)
for-sale on hedging
securities instruments

Land
revaluation¥509,632¥(35,062)¥(2,527)

Total
Debt value
Foreign adjustments accumulated
otherof foreign
currencytranslation subsidiaries comprehenadjustments and affiliates sive income¥10,906—¥482,949

Subscription
rights toshares

Noncontrollinginterests

Total net
assets¥659¥7,596¥1,389,506¥64,000 ¥670,203¥(43,013) ¥898,301

Dividends(33,086)(33,086)(33,086)

Loss attributable toowners of parent(132,150)(132,150)(132,150)(25,619)(25,619)(25,619)

271

237

237

74

74

(805)

(805)

(805)

(234,771)

2,688

805

24,164

3,810(203,301)(89)(1,084)(204,476)(166,042)(25,348) (191,349)(234,771)

2,688

805

24,164

3,810(203,301)(89)(1,084)(395,825)¥64,040 ¥504,160¥(68,361) ¥706,952¥274,861¥ 161¥(34,256)¥35,070¥3,810¥279,647¥570¥6,511¥ 993,681

Changes in the period

Purchase oftreasury shares
Disposal oftreasury shares(33)

Change in ownershipinterest of parent
due to transactions
with non-controllinginterests

74

Reversal ofland revaluation
Net changes of
items other thanshareholders’ equity
Total changes in the period
Balance at the end of
the year—¥207,111

40

See notes to consolidated financial statements.

5

T&D Holdings Consolidated Financial Statements 2023

Consolidated Statement of Cash Flows¥ millions

Years ended March 31,

2022

2023

¥(103,972)

Cash flows from operating activities:
Income (loss) before income taxes¥ 22,928

Depreciation of real estate for rent

5,871

5,750

Depreciation

14,335

15,43431

87

Impairment losses
Increase (decrease) in reserve for outstanding claims
Increase (decrease) in policy reserve

1,929

2,886

(259,945)(449,156)

16

15

24,284

22,378

Increase (decrease) in reserve for possible loan losses

97

(312)

Increase (decrease) in provision for bonuses to directors and audit and supervisory committee members

11

(3)

Increase (decrease) in provision for share-based remuneration

323

203

Interest portion of reserve for policyholder dividends
Provision for reserve for (reversal of) policyholder dividends

Decrease (increase) in net defined benefit asset(1,000)107

Increase (decrease) in net defined benefit liability(3,618)(1,326)

Increase (decrease) in provision for directors’ and audit and supervisory committee members’ retirement benefits
Increase (decrease) in reserve for price fluctuations

(19)

14

8,593

7,350

(319,845)(324,219)

Losses (gains) on investment securities

1,003(68,536)

Interest expenses

1,690

1,723

(28,892)(24,403)

Interest, dividends and income from real estate for rent

Foreign exchange losses (gains), net
Losses (gains) on disposal of tangible fixed assets
Equity in losses (earnings) of affiliates

703

(228)

(16,749)

217,383288(28)

Decrease (increase) in amount reinsurance receivable(11,075)(9,545)Decrease (increase) in other assets (excluding investment activities-related and financing activities-related)(20,535)(11,189)

Increase (decrease) in amount due to agencies(1,052)

679

Increase (decrease) in amount reinsurance payable

1,813

13,687

Increase (decrease) in other liabilities (excluding investment activities-related and financing activities-related)

1,745

4,701

Decrease (increase) in amount due from agencies

Others, net(55,091)

105,542

Subtotal(632,159)(594,976)

Interest, dividends and income from real estate for rent received

316,057

313,474

Interest paid

(1,654)(1,809)

Policyholder dividends(26,225)(25,613)

Others, net(4,262)(4,447)

Income taxes (paid) refunded(48,637)5,740¥(396,882)¥(307,631)

Net cash provided by (used in) operating activities(continued)

T&D Holdings Consolidated Financial Statements 2023

6¥ millions

Years ended March 31,

2023

2022

Cash flows from investing activities:
Net decrease (increase) in cash and deposits¥

12,050Investments in monetary claims purchased(35,066)

Proceeds from sales and redemption of monetary claims purchased
Investments in monetary trusts¥

19,800(13,575)

30,02810,301(201,929)(67,606)

110,037

185,000

Purchase of securities(1,522,578)(1,721,677)

Proceeds from sales and redemption of securities

1,847,212

2,825,143

Investments in loans(263,027)(377,178)

Collection of loans

318,237

318,532

Others, net(4,012)(492,118)

Subtotal

290,952

686,621

Total of net cash provided by (used in) operating activities and investment transactions as above(105,930)

378,990(7,989)(22,291)

Proceeds from disposal of tangible fixed assets

943

2,215

Others, net

(709)

(585)

283,196

665,960

(999)

999

Proceeds from monetary trusts

Purchase of tangible fixed assets

Net cash provided by (used in) investing activities
Cash flows from financing activities:
Net increase (decrease) in short-term debentures
Proceeds from issuance of debt

31,10014,900

Repayments of debt

(10,864)(24,900)

Redemption of bonds—(37,000)

Proceeds from share issuance to non-controlling shareholders

332

154

Repayments to non-controlling shareholders

(521)

(668)

Payment of lease obligations

(637)

(644)

Purchase of treasury shares(45,482)(25,619)32

147(30,655)(33,139)

Dividends paid to non-controlling interests

(49)

(34)

Purchase of shares of subsidiaries not resulting in change in scope of consolidation

—

(775)

Others, net

00(57,747)(106,580)

1,142(1,455)

Net increase (decrease) in cash and cash equivalents(170,290)

250,292

Cash and cash equivalents at the beginning of the year

1,085,565

915,275

915,275¥ 1,165,567

Disposal of treasury shares
Dividends paid

Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents

Cash and cash equivalents at the end of the year (Note 17)
See notes to consolidated financial statements.

7

T&D Holdings Consolidated Financial Statements 2023¥

Notes to Consolidated Financial Statements
Note 1

Notes on Going-Concern Assumption

Not applicable.

Note 2

Summary of Significant Accounting Policies(1) Basis of presentation

T&D Asset Management Co., Ltd.

On April 1, 2004, T&D Holdings, Inc. (the “Company”) was es-

Pet & Family Insurance Co., Ltd.

tablished as a life insurance holding company, of which Taiyo LifeAll Right Co., Ltd.

Insurance Company (“Taiyo Life”), Daido Life Insurance Company

T&D United Capital North America Inc.

(“Daido Life”) and T&D Financial Life Insurance Company (“T&D

T&D Confirm Ltd.

Financial Life”) (hereafter, the “Three Life Insurance Companies”)

T&D Information System, Ltd.

became wholly owned subsidiaries through share transfers. The

T&D Lease Co., Ltd.

business combination was accounted for as a pooling of interests.

Taiyo Credit Guarantee Co., Ltd.

The Company, including its domestic consolidated subsidiaries

Toyo Insurance Agency Co., Ltd.

(the “T&D Insurance Group”), maintains its accounting records

Taiyo Life Aging Society Instituteand prepares its financial statements in Japanese yen in accor-

Daido Management Service Co., Ltd.

dance with the provisions of the Insurance Business Act of Japan

Nihon System Shuno Inc.

(the “Insurance Business Act”) and in conformity with generally

Zenkoku Business Center Co., Ltd.

accepted accounting principles and practices in Japan.
The accompanying consolidated financial statements are com-

and 3 other companies		Newly established All Right Co., Ltd. and T&D Innovation

piled from the financial statements prepared by the Company as

Fund are included within the scope of consolidation inrequired by the Financial Instruments and Exchange Act of Japan.

the consolidated fiscal year ended March 31, 2023.

In preparing the consolidated financial statements, certain items(ii) Names of main non-consolidated subsidiaries, etc.: none

presented in the original financial statements have been reclassified and summarized for readers outside Japan. These consolidated financial statements have been prepared on the basis ofgenerally accepted accounting principles and practices in Japan,
which are different in certain respects from the application andb. Matters related to the application of the equity method(i)	Number of non-consolidated subsidiaries accounted forunder the equity method: none(ii)	Number of affiliates accounted for under the equity

disclosure requirements of International Financial Reporting

method: 5Standards. In addition, the accompanying footnotes include in-

The affiliates accounted for under the equity method areformation that is not required under generally accepted account-

Capital Taiyo Life Insurance, Ltd., Thuriya Ace Technology

ing principles and practices in Japan, but is presented herein as

Co., Ltd., Alternative Investment Capital Ltd., FGH

additional information to the consolidated financial statements.

Parent, L.P., and 1 other company.

Amounts of less than one million Japanese yen have been

Due to discontinuance of dispatching officers from

eliminated. As a result, Japanese yen totals shown herein do not

the T&D Insurance Group during the consolidated

necessarily agree with the sum of the individual amounts.

fiscal year ended March 31, 2023 and so on, Fortitude
International Reinsurance Ltd., Fortitude Group Holdings,(2) Principles of consolidation

LLC, Fortitude Reinsurance Company Ltd., Fortitude

a. Matters related to the scope of consolidation

International Ltd. and Fortitude International Group(i)	Number of consolidated subsidiaries: 20
The names of the consolidated subsidiaries:
Taiyo Life Insurance Company
Daido Life Insurance Company
T&D Financial Life Insurance Company
T&D United Capital Co., Ltd.

Holdings Ltd. are excluded from the affiliates accounted
for under the equity method.
(iii)	Names of non-consolidated subsidiaries and affiliates notaccounted for under the equity method, etc.: none(iv)	For the companies accounted for under the equity
method for which the closing date is different from the

T&D Holdings Consolidated Financial Statements 20238

consolidated closing date, the financial statements ofavailable-for-sale securities are treated as follows: theeach company’s fiscal year are used. In addition, for sometranslation differences from foreign currency fair valueof the companies accounted for under the equity meth-fluctuations are recorded as “net unrealized gains

od, financial statements, based on provisional settlement(losses)” and the remaining differences as “foreignof accounts implemented on other record date, are used.

exchange gains (losses).”c.	Matters related to the fiscal year of consolidated subsidiaries, etc.

The overview of the risk management policies of policy-re-	The closing dates of some consolidated subsidiaries areserve-matching bonds

December 31 and their financial statements as of the same

[Taiyo Life]

date are used for preparing the consolidated financial

Managed by setting the investment policy of attempting tostatements. The necessary adjustments for consolidation

effectively reduce the risk of the whole portfolio by asset mix

are made when important transactions occur between thewhich is based on a balanced-type ALM aiming at exceedingclosing dates and the consolidated closing date.

medium- and long-term liability cost.
Taking into account this investment policy and based on the(3) Foreign currency translation“Temporary Treatment of Accounting and Auditing Concerning

Foreign currency assets and liabilities are translated into Japanese

Policy-Reserve-Matching Bonds within the Insurance Industry”

yen at the prevailing foreign exchange rates at the consolidated(JICPA, Industry Audit Committee Report No. 21), the following

balance sheet date.

insurance policies are identified and classified as a sub-segment.

Assets, liabilities, revenues and expenses of the Company’s– All policies except for group insurance products segment,

affiliates located outside Japan are translated into Japanese yenother insurance product segment, non-participating currency

at the exchange rates in effect at the respective balance sheet

designation type single-premium individual annuity insurance,date. Translation differences of foreign currencies are included in

non-participating currency designation type special endowment

net assets as foreign currency translation adjustments.

insurance with living benefit, etc. in the general asset segment– All non-participating currency specific-type single-premium(4) Accounting policy for measuring significant assets

individual annuity insurance policies and non-participatinga.	Evaluation criteria and evaluation method for securities (in-currency designation type special endowment insurance withcluding cash and deposits/monetary claims purchased which
are equivalent to securities and securities invested as trust

living benefit by currency in the general asset segment– All defined contribution corporate pension insurance policies

properties in monetary trusts)

and all group pure endowment insurance in the group annuity(i)	Trading securities

insurance asset segment

		– Fair value method (costs of securities sold are calculated based on the moving average method)– All insurance policies in the variable interest rate type singlepremium insurance asset segment(ii) Held-to-maturity bonds
		– Amortized cost method based on the moving averagemethod (straight-line method)[Additional information]
The sub-segment of single-premium whole life/annuity insurance(iii) Policy-reserve-matching bonds

is integrated into the general asset segment at the end of the		consolidated fiscal year ended March 31, 2023. While the balance– Amortized cost method based on the moving averagemethod (straight-line method)of policy reserve in this segment is expected to decrease, this(iv) Available-for-sale securities

change is intended to achieve more accurate ALM through man-		– Securities other than stocks without market prices are

aging assets flexibly. This change has no impact on the consoli-valued by using the fair value method (cost of sales isdated balance sheet and consolidated statement of operations.

calculated by using the moving average method).
		– Stocks without market prices are valued at the cost
method using the moving average method.

Managed by setting the investment policy fully considering the

The valuation differences of available-for-sale securities

characteristics and the risk tolerance of insurance products inare reported as a component of net assets.

order to ensure the fulfillment of future obligations.

For some of the consolidated subsidiaries, translationdifferences of bonds in foreign currency-denominated9[Daido Life]T&D Holdings Consolidated Financial Statements 2023

Based on this investment policy, sub-segments in accordancewith the characteristics of the insurance products are set andbonds held in the attempt to control the duration within eachAll loans are subject to asset assessment by the related divisionsub-segment are classified as policy-reserve-matching bonds. The

based on the self-assessment criteria of the assets. The reservesub-segments are set as follows:

mentioned above is implemented based on the assessment– Individual insurance/individual annuity insurance in the gen-results, after the asset auditing division independent from theeral asset segment– Individual insurance/individual annuity insurance in therelated division audits the assessment results.
For collateralized or guaranteed loans to borrowers subject

non-participating insurance asset segment (subjects are theto bankruptcy or substantial bankruptcy, the amount of loans

cash flows likely to occur in the period of over 5 years andexceeding the estimated value of collateral or guarantees, which

within 40 years in the future)

were deemed uncollectible, was directly deducted from the– Group annuity insurance in the group annuity insurance
asset segment

amount of loans in the amounts of ¥353 million and ¥343 million for the years ended March 31, 2022 and 2023, respectively.
Consolidated subsidiaries other than the Three Life Insurance[T&D Financial Life]

Companies allocate reserves for possible loan losses, in accor-

Sub-segments are set in accordance with the characteristics of thedance with criteria equivalent to the above, based on the results

insurance products and the asset management policy is formulat-of the assessment which is implemented in the scope deemed

ed considering each sub-segment in order to manage interest ratenecessary considering the importance.

risk appropriately. Further, the matching of the duration of policy
reserves and policy-reserve-matching bonds within constant width(6) Allocation method for reserve for price fluctuations

are verified regularly. The sub-segments are set as follows:

Reserves for price fluctuations of the Three Life Insurance– Individual insurance (the portion of the future payout at theCompanies are allocated in order to provide for losses due tocertain attained age and above of the subject insurance type)– Accumulation rate type individual insurance

price fluctuations, which is pursuant to requirements under
Article 115 of the Insurance Business Act.

– Accumulation rate type fixed annuity insurance
Note that some insurance types and benefits are excluded.

(7) Policy reserve
To prepare for future performance of obligations under insurance

Evaluation criteria and evaluation method of derivative transactionsb.	

policies for which contractual liability have commenced before	Evaluation of derivative transactions is processed based on

the fiscal year end, policy reserve is provided by the Three Lifethe fair value method.

Insurance Companies at the amount calculated in accordancewith methodologies stipulated in the statement of calculation(5) Reserve for possible loan losses

procedures for insurance premiums and policy reserve (Article

The reserve for possible loan losses of the Three Life Insurance

4, Paragraph 2, Item 4 of the Insurance Business Act) based on

Companies is allocated in accordance with the self-assessment

Article 116, Paragraph 1 of the Insurance Business Act.

criteria and amortization/provision criteria of assets in order toprovide for losses due to irrecoverable credits, as follows:

Of policy reserve, premium reserve is calculated based on thefollowing methodologies:

For loans to borrowers who are in a state of legal/formal bank-– For policies subject to standard policy reserve, the method

ruptcy such as bankruptcy and civil rehabilitation, or in a state ofestablished by the Commissioner of the Financial Services

substantial bankruptcy, the remaining amount of the loan after

Agency (Notification No. 48 of the Ministry of Financedirectly deducting the amount stated below, less the estimated(1996))

amount collectible from collateral and guarantees is recorded.
For loans to borrowers who are not yet bankrupt but highly
likely to fall into bankruptcy, the amount deemed necessary from– For policies not subject to standard policy reserve, net level
premium method
Based on Article 121, Paragraph 1 of the Insurance Businessthe overall assessment of the borrowers’ solvency is recorded

Act and Article 80 of the Ordinance for Enforcement of thefrom the remaining amount of the loan after deducting the esti-

Insurance Business Act, policy reserve is reviewed by an ap-

mated amount collectible from collateral and guarantees.

pointed actuary whether the policy reserve is properly provid-

For loans other than the above (performing loans and doubtful

ed as of the fiscal year end.

loans), historical loan-loss ratio calculated from the loan losses

Of policy reserve, contingency reserve is provided at thefrom the fixed period in the past, multiplied by the loan amount,amount calculated for covering risks which may accrue in the

etc., is recorded.

future, so as to secure performance of the future obligations

T&D Holdings Consolidated Financial Statements 2023

10

under the insurance policies, based on Article 116 of theb. Intangible fixed assets (except for lease assets)

Insurance Business Act and Article 69, Paragraph 1, Item 3 of	Depreciation of software used in-house is calculated under

the Ordinance for Enforcement of the Insurance Business Act.

the straight-line method over a useful life of five years.

(8)	Provision for bonuses to directors and Audit andSupervisory Committee membersc. Lease assets
	For the depreciation of lease assets, lease assets with respect

To provide for payment of bonuses to directors and Audit andto ownership-transfer finance leases are calculated underSupervisory Committee members, a provision for the directors’

the same method for self-owned tangible fixed assets, andand Audit and Supervisory Committee members’ bonuses islease assets with respect to non-ownership-transfer financerecorded based on the expected amount to be paid in the year

leases are calculated under the straight-line method over theended March 31, 2023.

lease period.

(9)	Provision for share-based remuneration(13) Land revaluation

To provide for delivery of stock of the Company to directors

Taiyo Life revalued its land for operating purposes based on Act

and Audit and Supervisory Committee members, the estimatedon Revaluation of Land (Act No. 34 of 1998). Regarding theamount of share benefit obligations based on the internal rules

valuation differences between the previous and the revaluedof the Company and Three Life Insurance Companies is recorded

amounts, the tax equivalent to this valuation differences hasin provision for share-based remuneration.

been recorded in Liabilities section as “Deferred tax liabilities onland revaluation” and the amount after deducting the tax equiv-(10) P rovision for directors’ and Audit and Supervisory
Committee members’ retirement benefits
To provide for directors’ and Audit and Supervisory Committee
members’ retirement benefits, the Company sets up a provision
for directors’ and Audit and Supervisory Committee members’

alent from the valuation differences is recorded in Net Assets as“Land revaluation.”– The method of revaluation provided for in Article 3, Paragraph
3 of the same law
The amount is rationally adjusted and calculated based on theretirement benefits based on the internal rules of certain consol-

listed land price value as prescribed in Article 2, Item 1 of theidated subsidiaries, which is recorded in the amount recognized

Order for Enforcement of the Act on Revaluation of Land (Actto have accrued as of March 31, 2023.

No. 119 of 1998), the benchmark land price as prescribed in
Article 2, Item 2 of the same, and an appraisal by the real estate(11) A ccounting method for employees’ retirement benefits
For the calculation of retirement benefit obligations, the method

appraisers as prescribed in Article 2, Item 5 of the same, etc.
– Date of revaluation: March 31, 2002

for attributing the expected retirement benefit amount to eachperiod up to the current fiscal year-end is based on the benefit(14) Method for significant hedge accounting

formula standard.

a. Hedge accounting method for Taiyo Life

Actuarial gains and losses and past service costs are fully
expensed in the fiscal year which they accrue.

(i) Method for hedge accounting
Deferral hedge treatment and fair value hedge treatment
are used in hedge accounting. Special treatment is applied(12) Depreciation method for significant depreciable assets

for interest rate swap transactions qualifying for special

a. Tangible fixed assets (except for lease assets)treatment, and allocation treatment is applied for currency	Depreciation of tangible fixed assets (except for lease assets)
is mainly calculated under the declining-balance method.
Depreciation of buildings (except for building and accessories, and structures) acquired on and after April 1, 1998,
and building and accessories, and structures acquired on
and after April 1, 2016, is calculated under the straight-line
method. The main durable years are as follows:– Buildings, building and accessories, and structures: 2-50 years– Furniture and fixtures: 2-20 years

swap transactions qualifying for allocation treatment.
(ii) Hedging instrument and hedged item
1) Hedging instrument: interest rate swap
Hedged item:

loans and bonds

2) Hedging instrument: currency swap
Hedged item:	foreign currency-denominatedloans3) Hedging instrument: foreign exchange contract
Hedged item:	foreign currency-denominatedassets11

T&D Holdings Consolidated Financial Statements 2023

4) Hedging instrument: option
Hedged item:	domestic and foreign stocks, domestic and foreign-listed invest-

b. Hedge accounting method for Daido Life(i) Method for hedge accounting		Fair value hedge treatment is adopted for the method forment trusts, domestic bonds

hedge accounting. Allocation treatment is adopted for5) Hedging instrument: credit transaction

foreign exchange contract transactions hedging foreign

Hedged item:	domestic and foreign stocks, do-currency fixed deposits qualifying for allocation treatment.

mestic and foreign-listed invest-(ii) Hedging instrument and hedged item

ment trusts		

Hedging instrument: foreign exchange contract

		Hedged item:	foreign currency-denominated6) Hedging instrument: forward contract
Hedged item:	domestic and foreign stocks, do-available-for-sale securities andmestic and foreign-listed investment trusts(iii) Hedging policy

fixed deposits(iii) Hedging policy		Based on internal rules, etc., concerning asset manage-

Based on internal rules, etc., in accordance with the risk

ment, foreign exchange fluctuation risks of hedged items

management policy concerning asset management, cash

are hedged within a certain range.

flow and price fluctuation risks related to hedged items(iv) Evaluation method for hedge effectivenessare hedged within a certain range.

		Hedge effectiveness is evaluated by ratio analysis which(iv) Evaluation method for hedge effectivenessmainly compares the fair value fluctuation of hedged

Hedge effectiveness is evaluated semi-annually by meth-items and hedging instruments.

ods such as ratio analysis which compares the cumulative

However, the evaluation is omitted if the material con-

total of market fluctuations or cash flow fluctuations ofditions of the hedged item and the hedging instrument

hedged items and hedging instruments. However, eval-

are the same and hedge effectiveness is high.

uation of hedge effectiveness is omitted for interest rate
swap transactions under special treatment, etc., currencyc. Hedge accounting method for T&D United Capital Co., Ltd.

swap transactions under allocation treatment, contracts in(i) Method for hedge accounting

which both the hedged item and the hedging instrument

		Deferral hedge treatment is adopted for the method forare denominated in the same currency, option transac-

hedge accounting. Furthermore, allocation treatment istions in which hedged items are domestic/foreign stocks

adopted since the transaction qualify for the treatment.

and domestic/foreign-listed investment trusts, credit trans-(ii) Hedging instrument and hedged item

actions and forward contracts, and option transactions in		Hedging instrument: foreign exchange contract

which domestic bonds are the hedged item.

		Hedged item:	foreign currency-denominated(Hedging relationships which apply “Treatment of Hedge

stocks (forecast transaction)

Accounting for Financial Instruments that Reference LIBOR”)(iii) Hedging policy

Among the above hedging relationships, all of them		Based on the resolution made at the Board of Director’s

included in the scope of application of the “Treatment

meeting regarding the acquisition of foreign currency-de-of Hedge Accounting for Financial Instruments that

nominated stocks, foreign exchange fluctuation risks ofReference LIBOR” (ASBJ Practical Issues Task Force (PITF)

hedged items are hedged within a certain range.

No. 40, issued on March 17, 2022) are subject to this ex-(iv) Evaluation method for hedge effectivenessceptional treatment. Details of the hedging relationships

		The evaluation is omitted, since the material conditions

which apply the treatment are as follows:of the hedged item and the hedging instrument are theHedge accounting methods:	The special treatment forsame and hedge effectiveness is high.

interest rate swaps
Hedging instruments:

interest rate swaps(15) Accounting treatment for consumption taxes

Hedged items:

Loans

The accounting treatment of consumption tax and local con-Hedge transactions:

to fix the cash flows

sumption tax is based on the tax exclusion method. However,expenses of the nonlife insurance subsidiary such as loss adjustment expenses, sales and administrative expenses, etc.
are treated based on the tax inclusion method. Furthermore,

T&D Holdings Consolidated Financial Statements 202312

non-deductible consumption tax on assets, etc., which isalready incurred but not reported, hereinafter the same) cannot

prescribed in the tax law as deferred consumption tax, etc., isbe calculated at an appropriate level based on the main rule inrecorded in other assets and amortized over a 5-year period on

Article 1, Paragraph 1 of Notification of the Ministry of Financea straight-line basis, whereas tax other than deferred consump-

No. 234 (1998) (hereinafter the “IBNR Notification”). Therefore,tion tax is expensed in the fiscal year in which it accrues.

the reserve is calculated and recognized as follows based on theproviso of Article 1, Paragraph 1 of IBNR Notification.

(16) S cope of cash and cash equivalents in the
consolidated statements of cash flows(Overview of calculation method)

Cash and cash equivalents in the consolidated statements of

The reserve is calculated by the same method as the main rulecash flows consist of cash, deposits withdrawable at any timein Article 1, Paragraph 1 of IBNR Notification after excluding

and readily convertible into cash, and short-term investments

the amount relating to deemed hospitalization for policy hold-(term deposits, call loans, commercial paper, treasury discounters other than those with high risk of severity (hereinafter thebills, etc.) with insignificant risk of price fluctuations and with a“4 categories”) from the required amount of reserve for IBNR

maturity of 3 months or less at the time of acquisition.

claims and payment amount of insurance claims, etc. for all the
consolidated fiscal years stipulated by the main rule in Article 1,(17) Income from insurance premiums
In general, income from insurance premiums (excluding reinsur-

The amount relating to deemed hospitalization for the 4 cate-ance income) is recorded by the Three Life Insurance Companies

gories, which is used to estimate the amount relating to deemedat the amount of premiums received, for insurance policies for

hospitalization for those other than the 4 categories with awhich the premiums are received and the contractual liabilities

diagnosis date before September 25, 2022, is estimated byhave commenced.

multiplying the ratio of the cumulative payment amount for the

Of premiums received, the amount corresponding to the un-

4 categories with a diagnosis date after September 26, 2022 andexpired period as of the fiscal year end is accounted for as policy

the cumulative payment amount relating to deemed hospitaliza-

reserve in accordance with Article 116 of the Insurance Businesstion for those over 65 years old, which is one of the 4 categories,

Act and Article 69, Paragraph 1, Item 2 of the Ordinance forby the amount relating to deemed hospitalization for those over

Enforcement of the Insurance Business Act.

65 years old with a diagnosis date before September 25, 2022.

(18) I nsurance claims and other payments/(19) Reinsurance income and Reinsurance premiums

Reserve for outstanding claims

As for reinsurance income of the Three Life Insurance Companies,

Insurance claims and other payments (excluding reinsurance

insurance claims and others to be received based on a reinsurance

premiums) are recognized by the Three Life Insurance Companies

contract are recorded at the time of payment of insurance claims

at the amount of claims calculated and paid based on the policy

and others relating to an underlying insurance contract, etc.

conditions, for which the insured events provided in the policy
conditions have occurred.
Based on Article 117 of the Insurance Business Act and Article

As for reinsurance premiums of the Three Life Insurance
Companies, insurance premiums and others to be paid based ona reinsurance contract are recorded at the time of receipt of in-

72 of the Ordinance for Enforcement of the Insurance Businesssurance premiums and others relating to an underlying insurance

Act, reserve for outstanding claims is provided for unpaid insur-

contract or at the time of conclusion of the reinsurance contract.

ance proceeds over the contracts for which payment obligations

As for modified coinsurance, amounts received based on aexist as of the consolidated fiscal year end or for which insured

reinsurance contract as part of amounts equivalent to acquisition

events have already incurred but not reported.

costs relating to an underlying insurance contract are recorded

In the consolidated fiscal year ended March 31, 2023, theon reinsurance income, and the same amounts are recorded onscope of payment of hospital benefit, etc. for those who arereinsurance receivable as unamortized ceded commissions, which

diagnosed with COVID-19 and receive medical treatment at ac-

are amortized over the period of the reinsurance contract.

commodation facilities or home under the supervision of doctors,

13

Paragraph 1 of IBNR Notification.

Also, part of policy reserve and reserve for outstanding claims

etc. (hereinafter the “deemed hospitalization”) was changed.

equivalent to amounts which have been ceded is not set aside

As a result, the reserve for IBNR claims (insurance claims, etc.

based on Article 71, Paragraph 1 and Article 73, Paragraph 3 offor which insured events specified in the insurance policies have

the Ordinance for Enforcement of the Insurance Business Act.

T&D Holdings Consolidated Financial Statements 2023

(20) Significant Accounting Estimates

there may be a significant impact on the net defineda. Policy reserve

benefit asset or liability.

Amounts recognized on the consolidated financial statements(i)	¥ millions

2022

2023

¥14,359,852¥13,910,695¥¥

As of March 31,

Policy reserve
Other ordinary income(Reversal of policy reserve)259,945c. Impairment losses on fixed assets(i) Amounts recognized on the consolidated financial statements¥ millions

449,156(ii)	Information on significant accounting estimates in con-

As of March 31,

2022

2023

Impairment loss

¥31

¥87

(ii)	Information on significant accounting estimates in con-nection with items identified

nection with items identified

		1) Calculation method

		1) Calculation method			It is stated in “Note 2 (7) Policy reserve.”

			For the Three Life Insurance Companies, consolidated		2)	Major assumptions and their effects on the consolidat-

subsidiaries, real estates, etc. owned for insurance

ed financial statements of the following fiscal year, etc.

operations, etc., are grouped as a single asset group			If assumptions (base rates such as assumed inci-(operating assets) and other assets such as rental

dence rate and assumed interest rate) stated in theproperties and unused real estates are grouped sepa-

statement of calculation procedures for insurance

rately by each property (investment assets).

premiums and policy reserve significantly deviate

For the Company and other consolidated subsid-

from the latest actual rates and it is found to likely

iaries, real estates, etc. owned for their own opera-

to be insufficient to cover the performance of thetions are grouped as a single asset group (operating

future obligations, additional policy reserve must be

assets).

set aside in accordance with Article 69, Paragraph 5

For an asset group with an indication of impair-of the Ordinance for Enforcement of the Insurance

ment, impairment loss is recognized, when the total

Business Act.

amount of undiscounted future cash flows is lessthan the carrying amount of the asset group, at theb. Accounting treatment for employees’ retirement benefits

amount calculated by deducting the recoverable(i) Amounts recognized on the consolidated financial statements

amount (the larger of discounted future cash flows
and net realizable value) from the carrying amount.

¥ millions

As of March 31,

Net defined benefit asset
Net defined benefit liability

2022

2023

¥ 2,851¥42,145¥ 2,744¥40,818		2)	Major assumptions and their effects on the consolidated financial statements of the following fiscal
year, etc.

(ii)	Information on significant accounting estimates in connection with items identified

For calculation of undiscounted future cash flows
for the purpose of determining impairment rec-		1) Calculation method

ognition, the amounts of future net income from			Retirement benefit obligations and retirement benefit

insurance operations on the Mid-Term Management

expense are calculated based on actuarial assump-Plan, etc. are used for operating assets, and the track

tions used for calculation of future retirement benefit

record and future outlook of net income by eachobligations, expected long-term rate of return on plan

property are used for investment assets.

assets and others.

		

If the future net income from insurance operations

The method for attributing the expected retirement

and the future outlook of net income, which are thebenefit amount is stated in “Note 2 (11) Accounting

major assumptions, deteriorate and the undiscounted

method for employees’ retirement benefits”

future cash flows change, there may be a possibility2)	Major assumptions and their effects on the consolidat-

to recognize impairment loss.

ed financial statements of the following fiscal year, etc.
			Matters related to actuarial basis are stated in “Note(21) Change in accounting policies

24 Employees’ Retirement Benefits” If any of the[Implementation Guidance on Accounting Standard for Fair

major assumptions such as discount rate and expect-

Value Measurement]

ed long-term rate of return on plan assets changes,

Implementation Guidance on Accounting Standard for Fair

T&D Holdings Consolidated Financial Statements 2023

14

Value Measurement (ASBJ Guidance No.31, issued on June 17,

substitution value of the Company’s shares. The Company’s

2021, hereinafter the “Fair Value Measurement Implementation

shares to be delivered to Eligible Directors, etc. will be ac-

Guidance”) was adopted from the beginning of this consolidated

quired in advance by money in trust by the Company.

fiscal year. Accordingly, the Company has applied new accounting

b. The Company’s shares remaining in BIP Trust

policies prescribed in the Fair Value Measurement Implementation

	For the Company’s shares remaining in BIP Trust, the carry-

Guidance prospectively in accordance with the transitional treat-ing value in the trust is recorded as the treasury share in net

ment stipulated in Paragraph 27-2 of the Fair Value Measurement

asset (excluding ancillary expenses). The carrying value of

Implementation Guidance. For the consolidated financial state-treasury share in the Trust was ¥2,165 million, and the num-ments, the effect of the application is immaterial.

ber of treasury share in the Trust was 1,436,300 shares for

Also, the Company discloses notes on investment trusts inthe fiscal year ended March 31, 2022. Also, as of the end of

Note 20 Financial Instruments, Breakdown of fair values ofthe fiscal year ended March 31, 2023, the carrying value offinancial instruments by levels. However, in accordance withtreasury share in the Trust is ¥2,018 million, and the number

the treatment stipulated in Paragraph 27-3 of the Fair Valueof treasury share in the Trust is 1,338,700 shares.

Measurement Implementation Guidance, the notes for the consolidated fiscal year ended March 31, 2022 are not disclosed.

[Additional investments in Fortitude]
T&D United Capital Co., Ltd. (“T&D United Capital”)’s Board of(22) Additional information

Directors has resolved at its meeting held on March 31, 2022,[Transactions of Delivering the Company’s Own Stock to

the agreement to make an additional capital contribution to FGH

Employees etc. through Trusts]

Parent, L.P. (“Fortitude”) up to USD 525 million (approx. JPY 64.3

The Company has introduced a trust type stock compensation

billion, USD 1 = JPY 122.39) and T&D United Capital signed asystem(the “System”), the Board Incentive Plan (BIP) Trust, which

contract about this additional capital contribution at the same day.

uses a trust to deliver the Company’s shares, etc. to directors

T&D United Capital made an additional capital contribution by

who are not Audit and Supervisory Committee members of the$262.5 million on April 25, 2022 and May 12, 2023, respectively.

Company (excluding those who are part-time directors suchas outside directors and non-residents in Japan) and executive[Recording of debt value adjustments of foreign subsidiaries

officers of the Company (excluding those who are non-resi-

and affiliates]

dents in Japan, and together with directors who are not Audit

Fortitude has purchased from Prudential Financial, Inc., a U.S.

and Supervisory Committee members, collectively referred toinsurance group, 100% shares of its subsidiary, Prudential

as “Directors, etc.”) and directors of the Three Life Insurance

Annuities Life Assurance Corporation, with an aim to acquireCompanies (excluding those who are part-time directors such

U.S. variable annuity closed book. As Fortitude has applied fairas outside directors and non-residents in Japan) and executive

value option in the measurement of insurance liabilities of theofficers of the Three Life Insurance Companies (excluding those

aforementioned U.S. variable annuity, Fortitude recorded thewho are non-residents in Japan, and together with Directors,

portion attributable to own credit risk in the changes in fairetc., collectively referred to as “Eligible Directors, etc.”), withvalue of insurance liabilities under fair value option in otheran aim to enhance the motivation of Directors to contribute tocomprehensive income pursuant to the Accounting Standards

improving business performance and enhancing corporate value

Codification No. 825 (Financial Instruments) by the Financial

over the medium-to long-term.

Accounting Standards Board from the beginning of the consoli-

The accounting treatment of the System is based on “Practical

dated fiscal year (from January 1, 2022 to December 31, 2022).

Solution on Transactions of Delivering the Company’s Own Stock

As the Company has also adopted the accounting treatment in

to Employees etc. through Trusts” (ASBJ Practical Issues Task

the same manner in applying equity method to Fortitude from

Force (PITF) No. 30, March 26, 2015)

this consolidated fiscal year, the Company recorded debt value
adjustments of foreign subsidiaries and affiliates by ¥3,810 mil-a. Summarylion in accumulated other comprehensive income.

	Based on the internal rules of the Company and Three Life

15

Insurance Companies, the points are granted to Eligible[Ceded reinsurance transaction of a whole life insurance toDirectors, etc. and they are delivered and provided throughFortitude Group and others by Daido Life]a trust of the Company’s shares equivalent to accumulated

Daido Life has ceded a part of an existing paid-up whole life

points upon retirement and a monetary equivalent of theinsurance to Fortitude International Reinsurance Ltd. and others

T&D Holdings Consolidated Financial Statements 2023

in a form of a coinsurance.
The effects of the reinsurance transaction are as shown below:– Reversal of policy reserve ¥305,760 million– Reinsurance premiums ¥327,104 million

T&D Financial Life has ceded a part of an existing single-premium
whole life insurance to Fortitude International Reinsurance Ltd. ina form of a coinsurance.
The effects of the reinsurance transaction are as shown below:– Reversal of policy reserve ¥175,760 million[Ceded reinsurance transaction of a single-premium whole life

– Reinsurance premiums ¥149,844 million

insurance to Fortitude Group by T&D Financial Life]

Note 3Loans

The amounts of Claims subject to bankruptcy proceeding and reorganization proceedings and any other type of claims equivalent thereto, Claims with risks, Loans overdue for three months or more, and Restructured loans are as follows:¥ millions

As of March 31,

Claims subject to bankruptcy proceeding and reorganization proceedings andany other type of claims equivalent thereto
Claims with risks
Loans overdue for three months or more
Restructured loans
Total

Claims subject to bankruptcy proceeding and reorganization

2022

2023

¥ 186

¥ 205

781

779

1,242

903

20

20

¥2,230¥1,908Loans overdue for three months or more are loans, other thanproceedings and any other type of claims equivalent thereto are

Claims subject to bankruptcy proceeding and reorganization

claims held against debtors with failed business status due to theproceedings and any other type of claims equivalent thereto andgrounds such as commencement of bankruptcy proceedings, com-

Claims with risks, on which principal and/or interest are in arrears

mencement of reorganization proceedings, or commencement offor three months or more beginning the day after the agreed due

rehabilitation proceedings, and any other type of claims equivalent

date.

thereto.

Restructured loans are loans, other than Claims subject to

Claims with risks are claims whose debtor is not yet in the statusbankruptcy proceeding and reorganization proceedings and anyof failure in business although such debtor’s financial status andother type of claims equivalent thereto, Claims with risks and Loansbusiness performance are worsening, and for which it is highly like-overdue for three months or more, for which agreements havely that the collection of principal or receipt of interest in accordance

been made between the relevant parties to provide a concessionary

with the contract is impossible excluding the claims described ininterest rate, rescheduling of due dates for interest and/or principal

Claims subject to bankruptcy proceeding and reorganization pro-payments, waiver of claims, and/or other terms in favor of theceedings and any other type of claims equivalent thereto.

obligor for purposes of restructuring or supporting the obligor.

The direct write-downs of estimated uncollectable loans are as follows:¥ millions

As of March 31,

2022

2023

Claims subject to bankruptcy proceeding and reorganization proceedings andany other type of claims equivalent thereto

¥147

¥137

Note 4

Accumulated Depreciation of Tangible Fixed Assets

The amounts of accumulated depreciation of tangible fixed assets are as follows:¥ millions

Years ended March 31,

Accumulated depreciation of tangible fixed assets

2022

2023

¥249,019¥257,160

T&D Holdings Consolidated Financial Statements 2023

16

Note 5

Separate Account Assets

The amounts of separate account assets as provided in Article 118, Paragraph 1 of the Insurance Business Act are as follows. The amountsof liabilities are equal to the amounts of assets.
¥ millions

Years ended March 31,

Separate account assets as provided in Article 118, Paragraph 1 of the Insurance Business Act

Note 62022

2023¥48,602¥76,720

Reserve for Policyholder Dividends

The changes in reserve for policyholder dividends included in policy reserves are as follows:¥ millions

2022

2023

Balance at the beginning of the year

¥74,748¥72,856

Policyholder dividends

Years ended March 31,

26,22525,613

Increase in interest

16

15

Increase due to other reasons32—

Decrease due to other reasons—

31

Provision for reserve for policyholder dividends

24,284

22,378

Balance at the end of the year

¥72,856¥69,605

Note 7

Unused Loan Balance under Loan Commitments

The unused loan balance under loan commitments is as follows:¥ millions

Years ended March 31,

Total amount of loan commitments

2022

2023

¥42,110¥39,309

Balance of loans outstanding

18,65023,232

Balance¥23,460¥16,076

Note 8

Lending Securities for Loan Agreements

The lending securities for loan agreements are as follows:¥ millions

Years ended March 31,

Lending securities for loan agreement

Note 92022

2023¥1,753,919¥1,467,766

Bonds

Bonds include subordinated bonds, of which the payment priority is subordinated to other debts. The amounts are as follows:¥ millions

Years ended March 31,

2022

2023

Subordinated bonds¥157,000¥120,000

Note 10

Other Liabilities

Other liabilities include subordinated borrowings, of which the payment priority is subordinated to other debts. The amounts are as follows:¥ millions

Years ended March 31,

Subordinated borrowings

17

T&D Holdings Consolidated Financial Statements 2023

2022

2023

¥26,500¥13,500

Note 11

Organizational Change Surplus

The amounts of the organizational change surplus prescribed in Article 91 of the Insurance Business Act, are as follows:¥ millions

2022

2023

Taiyo Life Insurance Company¥63,158¥63,158

Daido Life Insurance Company

10,836

10,836

Years ended March 31,

Note 12Stocks and capital of Affiliated Companies

Stocks and capital of Affiliated Companies are as follows:¥ millions

Years ended March 31,

2022

2023

Stocks¥

1,112¥ 1,157

Capital155,551

17,186Note 13

Assets Pledged as Collateral and Secured Debts

Assets pledged as collateral are as follows:¥ millions

2022

2023

¥1,400,183¥1,509,812

Securities (Foreign securities)

613,214207,909

Cash collateral pledged for financial instruments

51,952

1,875¥2,065,350¥1,719,597

Years ended March 31,

Securities (Japanese government bonds)

Balance

Of these assets, securities are mainly pledged as a substitute for the overdraft limit of the exclusive account of real-time gross settlementof government bonds with the Bank of Japan, bond-lending transactions secured by securities, and margin for futures contracts, etc.
Secured debts¥ millions

Years ended March 31,

Cash collateral received for bond-lending transactions

Note 14

2022

2023

¥1,001,890¥993,780

Impairment Losses on Fixed Assets

The items regarding impairment losses on fixed assets are as follows:(1) Grouping of assets
For the Three Life Insurance Companies, real estates, etc. owned(2)	Circumstances which led to the recognition of
impairment losses

for insurance operations, etc., are grouped as a single asset

For some unused real estates, etc., carrying amount was reducedgroup and other assets such as rental properties and unused real

to the recoverable amount and the reduced amount was re-estates are grouped separately by each property.

corded in extraordinary losses as impairment losses because of a

For the Company and the consolidated subsidiaries other than
the Three Life Insurance Companies, real estates, etc. owned forsignificant drop in the market price and a decline in profitability
due to the stagnant rental income level, etc.

their own operations are grouped as a single asset group.

T&D Holdings Consolidated Financial Statements 2023

18

(3) Impairment losses recognized by asset group and the breakdown of the amounts of impairment losses by fixed asset type
Year ended March 31, 2022

¥ millions

Asset

LocationLand

Buildings, etc.

Total

Unused real estates, etc.

Otsu City, Shiga Prefecture (1 asset)

¥14

¥17

¥31

Asset

LocationLand

Buildings, etc.

Total

Unused real estates, etc.

Hachinohe City, Aomori Prefecture, etc. (2 assets)

¥61

¥25

¥87

Year ended March 31, 2023

¥ millions(4) Method for calculating the recoverable amountIn principle, the net realizable value is calculated by subtracting

The recoverable amount is based on net realizable value forthe estimated costs of disposal from the appraisal value calculat-

rental properties, etc.

ed in accordance with the real estate appraisal standard.

Note 15

Consolidated Statement of Comprehensive Income

Reclassification adjustments and tax effects regarding other comprehensive income are as follows:¥ millions

Years ended March 31,

2022

2023

¥(84,158)¥(254,579)

Valuation difference on available-for-sale securities:
Amount occurred during the year
Reclassification adjustments(133)(48,963)

Amount before tax effect(84,291)(303,543)

Tax effect22,31084,376

Valuation difference on available-for-sale securities(61,981)(219,166)
3,654

Deferred gains (losses) on hedging instruments:
Amount occurred during the year—

Reclassification adjustments

212

212

Amount before tax effect

212

3,867

Tax effect(59)(1,178)Deferred gains (losses) on hedging instruments

153

2,688

12

13

Amount occurred during the year

11,317

12,292

Total other comprehensive income¥(50,498)¥(204,171)

Foreign currency translation adjustments:
Amount occurred during the year
Share of other comprehensive income of associates accounted for using the equity method:

19

T&D Holdings Consolidated Financial Statements 2023

Note 16

Consolidated Statement of Changes in Net Assets

For the year ended March 31, 2022

(1) Type and number of issued shares and treasury sharesYear ended March 31, 2022

Number of sharesat the beginning of the fiscal year

Number of shares
increased in the fiscal year

Number of shares
decreased in the fiscal year

Number of sharesat the end of the fiscal year

633,000,000—

44,000,000

589,000,000

42,638,106

29,321,031

44,064,340

27,894,797

Issued shares:
Common stock
Treasury shares:
Common stock

Notes:
1. Issued shares of common stock decreased due to the following reason:– Retirement of treasury shares based on the resolution made at the Board of Directors’ meeting held on August 10, 2021: 44,000,000 shares
2. Treasury shares of common stock increased due to the following reasons:– Purchase of treasury shares based on the resolution made at the Board of Directors’ meeting held on May 14, 2021: 6,730,400 shares– Purchase of treasury shares based on the resolution made at the Board of Directors’ meeting held on November 12, 2021: 21,839,300 shares– Purchase by the BIP Trust: 732,600 shares– Purchase of odd-lot shares: 18,731 shares
3. Treasury shares of common stock decreased due to the following reasons:– Retirement of treasury shares based on the resolution made at the Board of Directors’ meeting held on August 10, 2021: 44,000,000 shares– Exercise of stock option : 24,600 shares– Delivery by the BIP Trust: 21,600 shares– Sale of the BIP Trust: 17,600 shares– Purchase request of odd-lot shares: 540 shares
4.	The number of treasury shares of common stock includes 1,436,300 shares of the Company’s treasury share owned by the BIP Trust as of the end of the fiscal year. (742,900 share as of beginning of the
fiscal year.)(2) Subscription rights to shares
Category

Breakdown of subscription rights to shares

Balance at the end of the fiscal year

The Company

Share subscription rights as stock options¥ millions¥659(3) Shareholder dividends
a. Shareholder dividends paid
Date of resolution

Type of shares

Amount of shareholder dividends

Shareholder dividends per share¥ millions¥

Record date

Effective dateJune 28, 2021

Ordinary General Meeting of
Shareholders held on June 25 2021

Common stock¥14,186¥24.0

March 31, 2021

Board of Directors’ meeting held on
November 12, 2021

Common stock¥16,362¥28.0

September 30, 2021 December 6, 2021

Notes:
1.	The total amount of shareholder dividends, which based on the resolution made at the Ordinary General Meeting of Shareholders held on June 25, 2021, includes ¥17 million of the dividends for theCompany’s treasury share owned by the BIP Trust.
2.	The total amount of shareholder dividends, which based on the resolution made at the Board of Directors’ meeting held on November 12, 2021, includes ¥40 million of the dividends for the Company’streasury share owned by the BIP Trust.

b.	Shareholder dividends whose record date was in the fiscal year ended March 31, 2022, while their effective date is in the fiscal year
ending March 31, 2023
Date of resolution

Type of shares

Amount ofshareholder dividends

Underlying assets

Shareholder
dividends per share¥ millions

Ordinary General Meeting of
Shareholders held on June 28, 2022

Common stock¥15,751

Record date

Effective date

March 31, 2022

June 29, 2022¥

Retained earnings¥28.0

Notes:
1. It is planned to submit the bill to the Ordinary General Meeting of Shareholders scheduled to be held on June 28, 2022.
2. The total amount of shareholder dividends includes ¥40 million of the dividends for the Company’s treasury share owned by the BIP Trust.

T&D Holdings Consolidated Financial Statements 2023

20

For the year ended March 31, 2023

(1) Type and number of issued shares and treasury sharesYear ended March 31, 2023

Number of sharesat the beginning of the fiscal year

Number of shares
increased in the fiscal year

Number of shares
decreased in the fiscal year

Number of sharesat the end of the fiscal year

589,000,000——

589,000,000

27,894,797

14,165,109

177,650

41,882,256

Issued shares:
Common stock
Treasury shares:
Common stock

Notes:
1. Treasury shares of common stock increased due to the following reasons:– Purchase of treasury shares based on the resolution made at the Board of Directors’ meeting held on November 12, 2021: 3,408,600 shares– Purchase of treasury shares based on the resolution made at the Board of Directors’ meeting held on November 14, 2022: 10,735,700 shares– Purchase of odd-lot shares: 20,809 shares
2. Treasury shares of common stock decreased due to the following reasons:– Exercise of stock option: 79,700 shares– Delivery by the BIP Trust: 34,700 shares– Sale of the BIP Trust: 62,900 shares– Purchase request of odd-lot shares: 350 shares
3.	The number of treasury shares of common stock includes 1,338,700 shares of the Company’s treasury share owned by the BIP Trust as of the end of the fiscal year. (1,436,300 share as of beginning of
the fiscal year.)(2) Subscription rights to shares
Category

Breakdown of subscription rights to shares

Balance at the end of the fiscal year
¥ millions

The Company¥570

Share subscription rights as stock options(3) Shareholder dividends
a. Shareholder dividends paid
Date of resolution

Type of shares

Amount of shareholder dividends

Shareholder dividends per share¥ millions¥

Record date

Effective dateJune 29, 2022

Ordinary General Meeting of
Shareholders held on June 28 2022

Common stock¥15,751¥28.0

March 31, 2022

Board of Directors’ meeting held on
November 14, 2022

Common stock¥17,335¥31.0

September 30, 2022 December 6, 2022

Notes:
1.	The total amount of shareholder dividends, which based on the resolution made at the Ordinary General Meeting of Shareholders held on June 28, 2022, includes ¥40 million of the dividends for theCompany’s treasury share owned by the BIP Trust.
2.	The total amount of shareholder dividends, which based on the resolution made at the Board of Directors’ meeting held on November 14, 2022, includes ¥42 million of the dividends for the Company’streasury share owned by the BIP Trust.

b.	Shareholder dividends whose record date was in the fiscal year ended March 31, 2023, while their effective date is in the fiscal year
ending March 31, 2024
Date of resolution

Type of shares

Amount ofshareholder dividends

Underlying assets

Shareholder
dividends per share¥ millions

Ordinary General Meeting of
Shareholders held on June 28, 2023

Common stock¥17,002

Retained earnings

Notes:
1. It is planned to submit the bill to the Ordinary General Meeting of Shareholders scheduled to be held on June 28, 2023.
2. The total amount of shareholder dividends includes ¥41 million of the dividends for the Company’s treasury share owned by the BIP Trust.

21

T&D Holdings Consolidated Financial Statements 2023

Record date

Effective date

March 31, 2023

June 29, 2023

¥

¥31.0

Note 17

Consolidated Statement of Cash FlowsThe following table provides a reconciliation of cash and cash equivalents in the consolidated statement of cash flows to cash and cash
deposits as stated in the consolidated balance sheet.
¥ millions

As of March 31,

Cash and deposits¥

Less: deposits with an original maturity of more than three months

2022

2023

890,674¥ 1,140,802(25,260)(5,460)504

543

Monetary claims purchased

170,920

158,873

Less: monetary claims purchased other than cash equivalents(130,921)(132,873)

Call loans

Monetary trusts

1,324,898

1,217,451

Less: monetary trusts other than cash equivalents(1,315,540)(1,213,768)

Cash and cash equivalents¥¥ 1,165,567

Note 18

915,275

Lease Transactions[As lessee](1) Finance leases
a. Ownership-transfer finance leases(i) Details of lease assets
		– Intangible fixed assets: software(ii) Depreciation method for lease assets
		The same depreciation method applied to self-owned fixed assets is applied.

b. Non-ownership-transfer finance leases(i) Details of lease assets
		– Tangible fixed assets: office appliances such as computer servers

		– Intangible fixed assets: software(ii) Depreciation method for lease assets		Straight-line method over the lease period is applied.

(2) Operating leases
Future lease payments under non-cancellable operating leases are as follows:¥ millions

As of March 31,

2022

2023

Due within one year

¥11

¥12

Due after one year

29

20

Total

¥40

¥32

[As lessor](1) Details of Lease investment assets
Other assets¥ millions

2022

2023

Lease income receivables¥45,003¥48,704

Estimated residual value

165

222

As of March 31,

Interest income
Total lease investment assets(3,766)(3,923)¥41,402¥45,004

T&D Holdings Consolidated Financial Statements 2023

22

(2)	Projected collection amounts of lease income receivables related to lease receivables and lease investment assets
after the consolidated closing dates
Other assets¥ millions

Lease receivables

Lease investment assets

Lease receivables

Lease investment assets

Due within one year

¥1,624¥12,355¥1,590¥12,818

Due after one year through two years
Due after two years through three years

1,364

10,484

1,335

10,782

1,112

8,415

1,069

8,867

Due after three years through four years

852

6,492

801

6,942

Due after four years through five years

591

4,576

596

4,691

1,085

6,303

1,104

7,605

As of March 31,

Due after five years

Note 19

2023

2022

Tax-Effect Accounting(1) Breakdown of the accrual of deferred tax assets and liabilities by main causes¥ millions

As of March 31,

2023

2022

Deferred tax assets:
Reserve for price fluctuations¥

72,706¥

74,761

Policy reserves

61,19762,455Net defined benefit liability

28,07927,619Devaluation losses on securities

17,576

15,724Losses on disposal of fixed assets

5,778

5,518

Valuation difference on available-for-sale securities

3,924

5,001

Provision for bonuses

2,457

2,752

Tax loss carry-forward*

6,013

1,940

956

897

15,200

16,636

Subtotal

213,889

213,309

Valuation allowance(18,393)(16,575)

Total deferred tax assets

195,496

196,733(195,308)(111,910)(2,778)(2,639)Reserve for possible loan losses
OthersDeferred tax liabilities:
Valuation difference on available-for-sale securities
Accrued dividend income
Deferred gain on reduction of carrying amount of real estate
OthersTotal deferred tax liabilities

(696)

(690)

(15,746)(10,554)(125,794)(214,529)

Net deferred tax assets (liabilities)¥ (19,033)¥

70,939* Tax loss carried forward and the deferred tax assets by carry forward period were as follows:

As of March 31, 2022

¥ millions

Within 1 year

Over 1 to
2 years

Over 2 to
3 years

Over 3 to
4 years

Over 4 to
5 years

Tax losses carried forward *1

5

6

280

Over 5 years

Total

—

—

5,720

6,013

Valuation allowance

—

—

(276)

—

—

(1,006)(1,282)

Deferred tax assets

5

6

3

—

—

4,714

*2 4,730*1. Tax loss carried forward is calculated by multiplying statutory effective tax rate.
*2. Deferred tax assets of ¥4,730 million are recorded for tax losses carried forward of ¥6,013 million (calculated using the statutory effective tax rate). They are deemed to be recoverable as it is expected that there will be taxable income in the future.
As of March 31, 2023
There is no significance in tax loss carried forward for the year ended March 31, 2023. Therefore, notes are omitted.

23

T&D Holdings Consolidated Financial Statements 2023

(2)	Breakdown of important differences between the statutory effective tax rate and the corporate tax rate, etc., after
applying tax-effect accounting by main item of the causes
Years ended March 31,

Effective statutory tax rate

2022

2023

28.0%

—%

(Adjustments)
Valuation allowance

(3.4)

—

Permanent non-deductible items including entertainment expense, etc.

1.5—Equity in earnings (losses) of affiliates

8.0—

Inhabitant tax on per capita basis

2.3—

Retained earnings of subsidiaries and affiliates

(0.4)

—

Others

1.1

—

37.1%

—%

Corporate tax rate, etc., after applying tax-effect accounting
Note: L oss before income taxes is recognized for the consolidated year ended March 31, 2023. Therefore, notes are omitted.

(3)	Accounting treatment for corporate tax and local
corporate tax, and tax-effect accounting related tothese taxes

ended March 31, 2023.
These companies have accounted for and made disclosure ofcorporate tax and local corporate tax, and tax effect account-

The Company and some domestic consolidated subsidiaries haveing, based on “the Practical Solution on the Accounting andadopted group tax sharing system which regards the Company

Disclosure Under the Group Tax Sharing System” (ASBJ Practicalas the parent company of tax sharing from the consolidated year

Issues Task Force (PITF) No. 42, issued on August 12, 2021).

Note 20

Financial Instruments(1) Matters related to the condition of financial instruments

on a long-term basis for the purpose of investment geareda. Policy for handling financial instruments

to market prospects to ensure stable returns. These financial

T&D Insurance Group’s main business is life insurance busi-

instruments are exposed to credit risks of the issuing entities

ness. The Group underwrites various classes of life insurance

and market risks associated with fluctuations in interest rate,and invests the money collected as insurance premiums in

exchange rates and stock prices, as well as market liquidity

financial assets including securities and loans.

risks.

In order to efficiently invest the insurance premiums trust-

Loans here include policy loans for policyholders anded to us by the policyholders, the Group’s asset management

commercial loans (non-policy loans) provided mainly to do-policy aims to build a portfolio which ensures long-term

mestic businesses and individuals. Commercial loans, thoughstable returns considering the characteristics of obligations

intended to ensure stable returns, are exposed to credit risks

involved in life insurance policies, based on the concept ofof borrowers’ default. A policy loan is provided within the

ERM which integrally manages capital, profit, and risk, and at

surrender value of each insurance policy, thus its credit risk isthe same time, paying adequate attention to the soundness

minimal.

and public nature of the investments.
Derivative financial instruments are used to hedge fluctua-

Derivative transactions including stock index futurescontracts, forward exchange contracts and interest rate swap

tion risks involved in our investment in financial instruments,

agreements are used primarily to hedge price fluctuation

as well as partially complement physical assets.

risks of our financial assets, and partially to complement

Furthermore, in order to pursue greater financial sound-physical assets by, for example, providing a solution to theness, the Group has been financing the subordinated-classtime constraint prior to the inclusion of physical assets into

capital (bonds and borrowings).

our portfolio. Accordingly, the Group does not enter into
those transactions for speculative purposes.

b. Details and risks of financial instruments

Stringent risk management is in place for derivative trans-

Financial assets held by the Group mainly comprise securities

actions, by clearly defining tolerable allowances in terms ofand loans.

the details, hedged items and trading limits of the transac-

Securities include public and corporate bonds, stocks andinvestment trusts offered at home and abroad that are held

tions as well as by properly controlling their status.
Hedge accounting is appropriately practiced in interest rate

T&D Holdings Consolidated Financial Statements 2023

24

swap agreements for loans and forward exchange contracts

on an economic value basis. Through the promotion andfor foreign currency-denominated assets, under the internal

enhancement of ERM, the Group aims for steady andrules clearly defining qualifications, applicable types of trans-sustainable growth in its corporate value.

actions, methods of evaluation of its effectiveness and meth-(ii) Management of market risk

ods of its designation. Effectiveness of hedging is determined

Market risks are properly controlled according to theby ratio analysis methodology comparing the movements ofrisk characteristic of each asset based on a precise

fair values of the hedged items and hedging instruments.

understanding of the sensitivity of investment assets
to parameters reflecting changes in the investmentc. Risk management system for financial instruments(i) Overall risk management system

environment, including interest rate, stock prices andexchange rates, as well as by reviewing asset allocation

The Group, in consideration of the social and public

and risk hedging based on identification of the overall

nature of the life insurance business which is its main

risk of the portfolio using the Value at Risk criterion

business, defines precise identification and managementof risks as one of the crucial management tasks for(hereafter referred to as “VaR”).
(iii) Management of credit risk

ensuring the soundness and adequacy of management,

Credit risk of the entire portfolio is identified and con-

where the Company, as the Group’s holding company,

trolled through its quantification by the use of VaR

has developed a “Group Risk Management Policy” whichbased on an internal rating for individual borrowers.

sets out the basic risk management philosophy within

Meanwhile, the aggregate amount of investment and

the Group and provides the appropriate risk manage-loans is capped by each industry sector or by group ofment structure according to the business characteristics

companies according to the corresponding risks, where-

and risk profiles of each of the Company including theby concentration of loans to specific industry sectors or

Three Life Insurance Companies.
As an organizational structure, the Group Risk

groups of companies is restrained.
(iv) Management of liquidity risk

Management Committee has been established for the

Liquidity risks are properly managed by ensuring a con-purpose of coordinated management of risks within the

stant amount of liquidity based on the Risk Management

Group, and has a clear understanding of the status of

Department’s precise understanding of the latest risk

various risks at each company including the Three Life

information, including the share of highly liquid assets,

Insurance Companies, through reports prepared on a reg-

cash flow situation, trends of the general financial/securi-ular or as-needed basis at each company using the unified

ties markets and the status of individual financial instru-

risk management criteria. Further, the Company provides

ments, as well as by developing a management structure

guidance and advice as appropriate to companies includ-that enables smooth liquidation of assets for financing.

ing the Three Life Insurance Companies, to carry out thorough risk management at each company and strengthen
the Group’s entire risk management system.

value, etc., of financial instruments

At each of the Three Life Insurance Companies, a com-

Estimation of fair value requires the use of certain assump-

mittee has been established to supervise company-wide

tions, etc. Therefore, the use of different assumptions, etc.

risk management at an enhanced level, while a mutual

may lead to a different value.

check-and-balance system is in place under the internal or-

In addition, notional amounts of derivative financial in-ganizational arrangement including the separation of thestruments shown in “(2) Matters related to fair value, etc.,

investment and loan execution function from the admin-of financial instruments” do not represent exposure toistration function within the investment division, indepen-market risks.

dence of the credit check function and implementation of
the internal audits by the Internal Auditing Department.
Furthermore, the Group has established the ERM committee to manage risks integrally with profit and capital

25d.	Supplementary notes concerning the matters related to fair

T&D Holdings Consolidated Financial Statements 2023

(2) Matters related to fair value, etc., of financial instruments
The following tables show consolidated balance sheet amounts, fair values and differences. Stocks without market prices and investments in partnerships and other similar business entities that are recorded at net value which is equivalent to the Company’s equity
interest on the consolidated balance sheet (hereinafter the “Investments in capital of partnerships and so forth”) are not included. (SeeAnnotation 1.)
In addition, cash and deposits, call loans, commercial paper out of monetary claims purchased, monetary trusts which have similar
nature with cash and deposits, short-term debentures, and cash collateral received for bond-lending transactions are omitted, because
these are settled in a short period and their fair values are proximate to the carrying amounts.
¥ millions

As of March 31, 2022

Monetary claims purchased
Treated as securities

Consolidatedbalance sheet amount¥

130,921¥

Fair value

Difference

130,999¥

78

127,915

127,912

Held-to-maturity bonds

73,342

73,340(2)

Available-for-sale securities

54,572

54,572—OthersMonetary trusts
Monetary trusts for trading purposes
Monetary trusts for held-to-maturity purposes
Monetary trusts for policy reserve-matching purposes
Monetary trusts for other than trading, held-to-maturity or policy reserve-matching purposes
Securities

(2)

3,006

3,086

80

1,315,540

1,305,398(10,142)

4,773

4,773

—

30,33130,162(168)

1,022,045

1,012,072(9,973)

258,390258,390—

12,409,201

12,706,459

297,257

Trading securities

46,51046,510—

Held-to-maturity bonds

905,730

1,036,075

130,345

Policy reserve-matching bonds

4,546,557

4,713,469

166,912Available-for-sale securities

6,910,404

6,910,404—

1,693,169

1,712,179

19,009Loans
Policy loans*1
Commercial loans*1
Reserve for possible loan losses*2
Total assets
Bonds
Borrowings within other liabilities
Total liabilities

100,044

108,488

8,451

1,595,156

1,603,691

10,558(2,030)——15,548,833

15,855,037

306,203

157,000

157,171171

67,156

67,097(59)

224,156

224,269112

Derivative financial instruments*3
Hedge accounting not applied
Hedge accounting applied*4
Total derivative financial instruments

509

509

—

(172,048)(171,785)262¥ (171,538)¥(171,276)¥

262*1. Difference indicates the difference between the amount after deducting the reserve for possible loan losses recorded in the consolidated balance sheet and its current fair value.
*2. Reserve for possible loan losses for loans is deducted.
*3. Assets and liabilities arising from derivative transactions are shown at net value. In the case of net liabilities, amounts are shown in parentheses.
*4. Regarding the special treatment of some interest rate swaps, “Practical Solution on the Treatment of Hedge Accounting for Financial Instruments that Reference LIBOR” (ASBJ PITF No. 40, issued on
March 17, 2022) was applied.

T&D Holdings Consolidated Financial Statements 2023

26

¥ millions

Consolidatedbalance sheet amount

As of March 31, 2023

Fair value

Difference

131,516¥ (1,357)

130,034

128,640(1,393)

Held-to-maturity bonds

82,37380,980(1,393)Available-for-sale securities

47,66047,660

—

2,839

2,875

35

1,213,768

1,174,024(39,744)

4,710

4,710

—

Monetary claims purchased¥

Treated as securities

OthersMonetary trusts
Monetary trusts for trading purposes

132,873¥

Monetary trusts for held-to-maturity purposes

30,48529,040(1,444)

Monetary trusts for policy reserve-matching purposes

929,828

891,528(38,299)

Monetary trusts for other than trading, held-to-maturity or policy reserve-matching purposes
Securities
Trading securities*1

248,745

248,745—

11,325,531

11,326,403

872

73,48073,480—821,559

907,01585,455

Policy reserve-matching bonds

4,819,431

4,734,848(84,582)

Available-for-sale securities*1

5,611,059

5,611,059—

1,755,779

1,763,965

8,186

100,664

108,283

7,627

1,657,153

1,655,681

559(2,038)——14,427,952

14,395,909(32,043)

120,000

116,489(3,511)

Held-to-maturity bonds

Loans
Policy loans*2
Commercial loans*2

Reserve for possible loan losses*3
Total assets
Bonds
Borrowings within other liabilities
Total liabilities

57,15556,771(384)

177,155

173,260(3,895)Derivative financial instruments*4
Hedge accounting not applied(2,910)(2,910)—Hedge accounting applied*5(20,530)(20,396)

134

Total derivative financial instruments¥(23,441)¥(23,307)

¥

134

*1. N
 et asset value of a part of investment trusts is regarded as fair value in accordance with generally accepted accounting principles and such investment trusts are included in the above table.
*2. Difference indicates the difference between the amount after deducting the reserve for possible loan losses recorded in the consolidated balance sheet and its current fair value.
*3. Reserve for possible loan losses for loans is deducted.
*4. Assets and liabilities arising from derivative transactions are shown at net value. In the case of net liabilities, amounts are shown in parentheses.
*5. R egarding the special treatment of some interest rate swaps, “Practical Solution on the Treatment of Hedge Accounting for Financial Instruments that Reference LIBOR” (ASBJ PITF No. 40, issued on
March 17, 2022) was applied.

27

T&D Holdings Consolidated Financial Statements 2023

Annotation 1
The balance sheet amounts of stocks without market prices such as unlisted stocks and the Investments in capital of partnerships and soforth are not included in “Securities” in the above table and summarized as follows:¥ millions

2022

2023

¥156,664¥18,343

Years ended March 31,

Unlisted stocks of subsidiaries and affiliated companies

1,112

1,157

155,551

17,186

Available-for-sale securities

382,260

440,311

Unlisted stocks, etc. *1, *3

41,433

31,912

Investments in capital of partnerships and so forth *2, *3

340,827

408,399

Unlisted stocks, etc. *1
Investments in capital of partnerships and so forth *2*1. U nlisted stocks, etc. are excluded from disclosure of fair value due to the lack of market prices based on the paragraph 5 of “Implementation Guidance on Disclosures about Fair Value of Financial
Instruments” (ASBJ Guidance No. 19, issued on March 31, 2020).
*2. T he Investments in capital of partnerships and so forth as of March 31, 2022, are excluded from disclosure of fair value based on the paragraph 27 of “Implementation Guidance on AccountingStandard for Fair Value Measurement” (ASBJ Guidance No. 31, issued on July 4, 2019). The Investments in capital of partnerships and so forth as of March 31, 2023, are excluded from disclosure of fairvalue based on the paragraph 24-16 of the “Fair Value Measurement Implementation Guidance.”*3. U nlisted stocks, etc. and the Investments in capital of partnerships and so forth were impaired by 1,955 million yen in the consolidated fiscal year ended March 31, 2022. Unlisted stocks, etc. and theInvestments in capital of partnerships and so forth were impaired by 3,433 million yen in the consolidated fiscal year ended March 31, 2023.

Annotation 2
Scheduled redemption amounts after the consolidated closing date for monetary claims and fixed-maturity securities are as follows:¥ millions

As of March 31, 2022

Due in one year
or less

Due after one year
through five years

Due after five years
through ten years¥¥¥664,593

Call loans

504

—

—

—

41,366

2,434

3,352

119,313

Monetary claims purchased——

Due after ten years

Deposits¥—

Securities:
Held-to-maturity bonds:
Government bonds

83,197

37,627

241,633

340,150

Municipal bonds

36

811

3,945

42,265

Corporate bonds

4,928

20,962

15,66399,428Foreign securities

—

—

—

28,510

Policy reserve-matching bonds:
Government bonds

6,344

199,039

477,1622,354,568

Municipal bonds

4,026

41,703

19,136251,183

Corporate bonds

25,88096,650199,572

803,360

Foreign securities—

15,29927,171

9,191

Government bonds

8,819

40,2996,827

224,798

Municipal bonds

1,726

21,890

9,652

11,573

Corporate bonds

90,668

301,635

204,647

178,710Foreign securities

154,679

731,949

530,389

711,488

—

45

98

—

184,974

654,018

506,505

225,005

Available-for-sale fixed maturity securities:

Other securities
Loans* Securities without contractual maturity dates in the amount of ¥1,376,191 million are not included. In addition, loans without contractual maturity dates such as policy loans in the amount of ¥124,836
million are not included.

T&D Holdings Consolidated Financial Statements 2023

28

¥ millions

As of March 31, 2023

Deposits

Due in one year
or less

Due after one year
through five years

Due after five years
through ten years¥1,140,753

¥

¥

—

—

Due after ten years

¥

—

543

—

—

—

26,604

2,445

2,924

123,767

16,00029,915

261,378

312,116

Municipal bonds

701

2,096

1,447

42,506

Corporate bonds

21,981400

19,98995,089Foreign securities

100

728

2,000

27,369Government bonds

89,171

136,363585,2992,550,106

Municipal bonds

10,321

31,50919,136254,046

Corporate bonds

38,50079,823

262,200

735,381

Foreign securities

3,605

15,998

11,434

7,237

15,00021,3283,540

354,600

Call loans
Monetary claims purchased
Securities:
Held-to-maturity bonds:
Government bonds

Policy reserve-matching bonds:

Available-for-sale fixed maturity securities:
Government bonds
Municipal bonds

3,662

17,207

8,588

11,110

Corporate bonds

52,299138,106

110,711

171,780

Foreign securities

53,910272,918

375,725

648,971

—

25

104

—

186,531

669,055

480,289

290,598

Other securities
Loans* Securities without contractual maturity dates in the amount of ¥1,169,213 million are not included. In addition, loans without contractual maturity dates such as policy loans in the amount of ¥130,478
million are not included.

Annotation 3
Scheduled repayment amounts after the consolidated closing date for bonds, borrowings, and other interest-bearing liabilities are as
follows:¥ millions

As of March 31, 2022

Due in one year
or less

Short-term debentures

¥

5,000

Bonds
Cash collateral received for bond-lendingtransactions within other liabilities

Due after one year
through two years

¥

—

—

Due after two years
through three years

¥

—

—

Due after three years
through four years

¥

—

—

Due after four years
through five years¥—

Due after five years

—

¥

—

157,000—

1,001,890

—

—

—

—

—

10,626

9,366

7,997

5,614

3,619

29,933

Due in one year
or less

Due after one year
through two years

Due after two years
through three years

Due after three years
through four years

Due after four years
through five years

Borrowings within other liabilities¥ millions

As of March 31, 2023

Short-term debentures

¥

6,000
—

Bonds

29

¥

—
—

¥

—
—

¥

—
—

¥

Due after five years

—

¥

—

120,000—

Cash collateral received for bond-lendingtransactions within other liabilities

993,780

—

—

—

—

—

Borrowings within other liabilities

12,08910,720

8,337

6,342

4,029

15,637

T&D Holdings Consolidated Financial Statements 2023

(3) Breakdown of fair values of financial instruments by levels
Fair values of financial instruments are categorized into the following three levels according to observability and importance of inputs
related to calculation of the fair values.
Level 1: Fair values calculated by using quoted prices that are formed in active markets and related to assets or liabilities for which thefair values are calculated among inputs related to calculation of observable fair values.
Level 2: Fair values calculated by using inputs related to calculation of observable fair values other than level 1 inputs.
Level 3: Fair values calculated by using inputs related to calculation of unobservable fair values.
When multiple inputs that have some significant impact on calculation of fair values are used, the fair values are categorized into thelowest priority level in the calculation of fair values among the levels to which each of those inputs belongs.
a. Financial instruments for which fair values are used as consolidated balance sheet amount¥ millions

Fair value
As of March 31, 2022

Monetary claims purchased

Level 1¥

Available-for-sale securities
Monetary trusts
Monetary trusts for trading purposes
Monetary trusts for other than trading, held-to-maturity or
policy reserve-matching purposes
Securities
Available-for-sale securities
Domestic bonds
Government bonds—¥

Level 2

Level 352,932¥ 1,640

Total¥

54,572—

52,932

1,640

54,572

4,627

57,744—62,371

4,627

145

—

4,773

—

57,598—57,5982,691,075

1,768,752

33,797

4,493,624

2,691,075

1,768,752

33,797

4,493,624

323,488

1,234,270

388

1,558,147
302,430

302,430——

Municipal bonds—

47,566—47,566

Corporate bonds

21,0581,186,703

388

1,208,150

Domestic stocks

745,326——

745,326

Foreign securities

1,619,472

534,481

33,4092,187,363

Foreign bonds

1,596,186

534,481

33,4092,164,077

Foreign stocks

23,286——23,286

Other securities

2,788

—

—

2,788

Derivative financial instruments

484

14,084—

14,568Currency-related transactions

—

3,040

—

3,040

Interest-related transactions—

11,043—

11,043

Stock-related transactions

484

—

—

484

2,696,187

1,893,512

35,437

4,625,137—

186,107—

186,107

Total assets
Derivative financial instruments
Currency-related transactions
Total liabilities¥—

186,107—¥ 186,107¥—

186,107—¥ 186,107* Investment trusts and monetary trusts which are mainly invested in investment trusts to which the transitional treatment was applied in accordance with the Paragraph 26 of “Implementation Guidanceon Accounting Standard for Fair Value Measurement” (ASBJ Guidance No. 31, issued on July 4, 2019) are not included in the above table. The amount of such investment trusts on the consolidatedbalance sheet is ¥2,664,081 million.

T&D Holdings Consolidated Financial Statements 2023

30

¥ millions

Fair value
As of March 31, 2023

Monetary claims purchased

Level 1¥

Available-for-sale securities
Monetary trusts
Monetary trusts for trading purposes
Monetary trusts for other than trading, held-to-maturity or
policy reserve-matching purposes—¥

Level 2

Level 3

46,143¥1,517

Total¥

47,660—46,143

1,517

47,6604,599

248,855—

253,455

4,599

110

—

4,710

—

248,745—

248,745

2,532,440

2,576,181

91

5,108,712—

72,830—72,830

—

37

—

37

—

37

—

37

—

72,793—72,7932,532,440

2,503,350

91

5,035,881

420,601

917,678

91

1,338,371

397,170——

397,170

Municipal bonds—

42,067—42,067

Corporate bonds

23,430875,611

91

899,133

Domestic stocks

661,438——

661,438

Foreign securities

1,177,700

1,493,796—

2,671,497

Foreign bonds

792,046437,881—

1,229,928

Securities
Trading securities
Foreign securities
Foreign other securities
Other securities
Available-for-sale securities
Domestic bonds
Government bonds

23,574——

23,574362,079

1,055,914—

1,417,993

272,699

91,874—

364,574

Derivative financial instruments

1

11,084—

11,086

Currency-related transactions—

11,024—

11,024

Stock-related transactions

1

59

—

61

2,537,041

2,882,264

1,608

5,420,915

Derivative financial instruments—

34,527—34,527

Currency-related transactions—

34,366—34,366

Stock-related transactions

—

161

—

Foreign stocks
Foreign other securities
Other securities

Total assets

Total liabilities

¥

—

¥

34,527

¥

—

161
¥

34,527* Net asset value of a part of investment trusts is regarded as fair value in accordance with generally accepted accounting principles and such investment trusts are not included in the above table.

31

T&D Holdings Consolidated Financial Statements 2023

b. Financial instruments for which fair values are not used as consolidated balance sheet amount¥ millions

Fair value
As of March 31, 2022

Monetary claims purchased

Level1¥—

Level2¥

73,340Level3

¥

3,086

Total

¥

76,427

Held-to-maturity bonds—

73,340—

Not treated as securities

—

—

3,086

3,086

1,042,234——

1,042,234

Monetary trusts
Monetary trusts for held-to-maturity purposes
Monetary trusts for policy reserve-matching purposes
Securities

73,34030,162——30,162

1,012,072——

1,012,072
5,749,544

4,001,957

1,746,512

1,074

Held-to-maturity bonds

799,233

235,768

1,074

1,036,075

Domestic bonds

799,233

209,570—

1,008,803

Government bonds

799,233——

799,233

Municipal bonds—

52,703—52,703

Corporate bonds—

156,867—

156,867

Foreign securities—

26,197

1,074

27,271

Foreign bonds—

26,197

1,074

27,2713,202,724

1,510,744—

4,713,469

3,160,426

1,498,704—

4,659,131
3,160,426

Policy reserve-matching bonds
Domestic bonds
Government bonds

3,160,426——

Municipal bonds—

322,860—

322,860

Corporate bonds—

1,175,844—

1,175,844

Foreign securities

42,297

12,039—54,337

Foreign bonds

42,297

12,039—54,337——

1,712,179

1,712,179

Policy loans——

108,488

108,488

Commercial loans——

1,603,691

1,603,691

—

262

—

262

Loans

Derivative financial instruments
Interest-related transactions

—

262

—

262

5,044,192

1,820,116

1,716,340

8,580,649

Bonds

—

120,150

37,021

157,171

Borrowings within other liabilities—

13,39553,702

67,097—¥ 133,545

90,723¥ 224,269

Total assets

Total liabilities¥¥

T&D Holdings Consolidated Financial Statements 2023

32

¥ millions

Fair value
As of March 31, 2023

Monetary claims purchased

Level1¥—

Level2¥80,980Level3

¥

2,875

Total

¥

83,855

Held-to-maturity bonds—

80,980—80,980

Not treated as securities

—

—

2,875

2,875
920,569

920,569——

Monetary trusts for held-to-maturity purposes

29,040——29,040

Monetary trusts for policy reserve-matching purposes

891,528——

891,528

3,993,339

1,648,424

99

5,641,864

Held-to-maturity bonds

686,092

220,82299

907,015

Domestic bonds

685,392

195,429—880,821685,392——

685,392

Municipal bonds—

50,114—

50,114

Corporate bonds—

145,315—

145,315

Foreign securities

700

25,392

99

26,193Foreign bonds

700

25,392

99

26,1933,307,246

1,427,602—

4,734,848

3,285,194

1,411,395—

4,696,589

3,285,194——

3,285,194

Monetary trusts

Securities

Government bonds

Policy reserve-matching bonds
Domestic bonds
Government bonds
Municipal bonds—

307,247—

307,247

Corporate bonds—

1,104,147—

1,104,147

Foreign securities

22,051

16,207—

38,259Foreign bonds

22,051

16,207—

38,259——1,763,965

1,763,965

Policy loans——

108,283108,283

Commercial loans——

1,655,681

1,655,681

Derivative financial instruments

—

134

—

134

Interest-related transactions

—

134

—

134

Loans

4,913,908

1,729,539

1,766,940

8,410,387

Bonds

—

116,489—

116,489

Borrowings within other liabilities—

13,29643,47456,771—¥ 129,785

43,474¥ 173,260

Total assets

Total liabilities¥¥

Annotation 1
Description of the valuation techniques and inputs used to mea-

options, etc. are used within monetary trusts and fair value ofsure fair value

them is calculated by the same method as that for derivatives.

Monetary claims purchased
Fair value of monetary claims purchased which are deemed ap-

See “Note 22 Monetary Trusts” for notes related to monetarytrust by holding purposes.

propriate to treat as securities is based on the value calculatedby the same method as that of securities. Fair value of mone-

Securities

tary claims purchased which are deemed appropriate to treat as

Fair value of listed stocks is based on the quoted prices in mar-loans is based on the value calculated by the same method as

kets, and listed stocks of which the fair value is based on thethat of loans.

quoted prices in active markets with no adjustment are classified
into Level 1.

Monetary trusts
Fair value of monetary trusts invested mainly in securities is based

es, etc. Bonds of which the fair value is based on the transaction

on the value calculated by the same method as that for securi-

prices, etc. in active markets with no adjustment are classified

ties. Monetary trusts are classified based on levels of constituents

into Level 1. Bonds of which the fair value is based on the ob-held in trust.

servable transaction prices, etc. in inactive markets are classified

In addition to the above, currency options and stock index

33

Fair value of bonds is based on the observable transaction pric-

T&D Holdings Consolidated Financial Statements 2023

into Level 2. If the transaction prices, etc. are not available, thefair value is calculated by the discounted present value method

and fair values are proximate to consolidated balance sheetof future cash flow, etc. The Company makes maximum use ofamounts less the estimated uncollectible amounts at the con-observable inputs in the calculations, including government bondsolidated closing date, and thus the amounts are recorded asyields and credit risk premiums, etc. If a significant unobservablefair values.

input is used in the calculation, the fair value is classified into

For these transactions, unobservable inputs are used.

Level 3, and if not, the fair value is classified into Level 2.

Therefore, they are classified into Level 3.

Fair value of investment trusts is based on quoted prices inmarkets or net asset value, etc. announced by industry groups

Bonds

and settlor companies of investment trusts. If the fair value isFair value of bonds is based on quoted price, or calculated bybased on the quoted prices in markets with no adjustment, it is

discounting the total amount of principal and interest by dis-classified into Level 1; otherwise, it is classified into Level 2.

count rate that takes into account the remaining period of theSee “Note 21 Securities” for notes related to securities bybond and credit risk of the issuer. Those of which the fair value
is based on the quoted prices in active markets are classified into

holding purposes.

Level 2. If not, those are classified into Level 3 as the discountLoansrate is unobservable.

a. Policy loans
Fair value of policy loans is calculated by discounting the

Borrowings

expected future cash flow derived from the repayment rate

Fair value of borrowings is calculated by discounting the total

based on the past actual repayment performance by the risk-

amount of principal and interest by discount rate that takes into

free rate and classified into Level 3.

account the remaining period of the borrowing and credit risk ofthe borrower. If the discount rate is observable, borrowings are

b. Commercial loansclassified into Level 2. If not, those are classified into Level 3.

Variable interest rate loans reflect the market interest rate
in a short period. Therefore, carrying amount is recorded asfair value since fair value is proximate to the carrying amount

Derivatives

unless the borrower’s credit standing significantly changesa.	Fair value of forward exchange contract transactions use
forward exchange rates, etc., and are classified into Level 2.

after the loan is provided.

b.	Fair value of stock index futures, stock forward contracts,

Fair value of fixed interest rate loans is calculated bydiscounting the total amount of principal and interest by risk-

stock index options, individual stock options, bond futures,

free rates weighted by credit risks involved.

bond options, currency options, currency swaps, and interest
swap transactions are based on the quoted prices in markets,

For loans to bankrupt companies, effectively bankrupt
companies and potentially bankrupt companies, estimatedor the prices calculated based on observable market data,

uncollectible amounts are calculated based on the pres-etc. Those of which the fair value is based on the quoted

ent value of the estimated future cash flows or estimatedprices in active markets with no adjustment are classified intoamounts recoverable through pledge or guarantee, etc.

Level 1. If not, those are classified into Level 2.

Annotation 2
Financial instruments for which level 3 fair values are used as consolidated balance sheet amounta. Quantitative information about significant unobservable input
As of March 31, 2022

Valuation techniques

Significant unobservable input

Range of inputs

Weighted average of inputs

Monetary claims purchased

Discounted-cash-flow method

Discount rate

1.53% – 1.73%

1.62%

Securities (Domestic bonds)

Discounted-cash-flow method

Discount rate

0.58% – 0.58%

0.58%

As of March 31, 2023

Valuation techniques

Significant unobservable input

Range of inputs

Weighted average of inputs

Monetary claims purchased

Discounted-cash-flow method

Discount rate

1.86%

1.86%

Securities (Domestic bonds)

Discounted-cash-flow method

Discount rate

0.58%

0.58%

T&D Holdings Consolidated Financial Statements 2023

34

b.	Reconciliations between the beginning and ending balances, valuation gains / losses recognized in the gains / losses in the period¥ millions

As of March 31, 2022

Balance at the beginning of the fiscal year
Gains/losses or other comprehensive income in the period

Monetaryclaims purchased

Domestic bonds

Foreign securities

Total

1,877

726

—

2,603
(1)

(0)

(0)

—

Recorded in gains/losses *1

—

0

—

0

Recorded in other comprehensive income *2

(0)

(1)

—

(2)

(235)

(337)

—

(573)

—

—

33,40933,409Net amount for purchase, sale, issuance and settlement
Transfer to Level 3 fair values *3
Transfer from Level 3 fair values
Balance at the end of the fiscal year
Valuation gains / losses on financial assets and liabilities held at the end of theperiod out of the amount recorded in gains / losses for the period

—

—

—

—

1,640

388

33,40935,437————*1. It is included in “Investment income” and “Investment expenses” in the consolidated statement of operations.
*2. It is included in “Valuation difference on available-for-sale securities” under “Other comprehensive income” of the consolidated statement of comprehensive income.
*3.It is a transfer from Level 2 fair value to Level 3 fair value due to changes in the observability of the inputs used to calculate fair value based on market liquidity and transferred in the last date of fiscal
consolidated year.
¥ millions

As of March 31, 2023

Balance at the beginning of the fiscal year

Monetaryclaims purchased

Domestic bonds

Foreign securities

Total¥1,640¥ 388¥ 33,409¥ 35,437
1,471

(37)

(0)

1,508

Recorded in gains/losses *1

—

0

3,046

3,046

Recorded in other comprehensive income *2

(37)

(0)

(1,538)(1,575)

Net amount for purchase, sale, issuance and settlement

(85)

(296)

(10,718)(11,101)

Transfer to Level 3 fair values *

3

—

—

—

—

Transfer from Level 3 fair values——(24,198)(24,198)

1,517

91

—

1,608

—

—

—

—

Gains/losses or other comprehensive income in the period

Balance at the end of the fiscal year
Valuation gains / losses on financial assets and liabilities held at the end of theperiod out of the amount recorded in gains / losses for the period*1. It is included in “Investment income” and “Investment expenses” in the consolidated statement of operations.
*2. It is included in “Valuation difference on available-for-sale securities” under “Other comprehensive income” of the consolidated statement of comprehensive income.
*3. It is a transfer from Level 3 fair value to Level 2 fair value due to changes in the observability of the inputs used to calculate fair value based on market liquidity. It is executed at the end of the consolidated fiscal year.

c. Description of the fair value valuation process

price obtained from a third party, the validity of the price is

The Group has established policies and procedures for cal-verified by appropriate methods such as confirmation of theculating the fair value, and calculates the fair value in accor-

valuation technique and inputs used and comparison withdance with them.

the fair value of similar financial instruments.

The calculated fair value is checked by an independentvaluation department to confirm operations for the validity

35d.	Explanation of the sensitivity of the fair value to changes inof the valuation technique and inputs used in the calculation

significant unobservable inputof the fair value and the appropriateness of the classification

A significant unobservable input used in calculating the fairof the fair value level, thereby ensuring the appropriatenessvalue of monetary claims purchased and securities is theof the policies and procedures for calculating the fair value.

discount rate. The discount rate consists of government

In calculating the fair value, we use a valuation model thatbond interest rates and credit risk premiums. In general, acan most appropriately reflect the nature, characteristics andsignificant increase (decrease) in the discount rate results in arisks of individual assets. In addition, when using the quoted

significant decrease (increase) in the fair value.

T&D Holdings Consolidated Financial Statements 2023

(4)	Investment trusts for which net asset value is regarded as fair value in accordance with generally accepted
accounting principles
Investment trusts for which net asset value is regarded as fair value in accordance with generally accepted accounting principles are notdisclosed in “(3) Breakdown of fair values of financial instruments by levels.” The amount of the investment trusts on the consolidatedbalance sheet is ¥ 575,827 million in financial assets.
a. Reconciliations between the beginning and ending balances of investment trusts whose properties are financial instruments¥ millions

Trading securities

Available-for-salesecurities

Foreign othersecurities

Foreign othersecurities

Total¥1,321¥419,087¥420,409(367)

39,73439,367(367)

31,30130,934

Recorded in other comprehensive income *2

—

8,433

8,433

Net amount for purchase, sale and redemption(304)

52,861

52,556———

As of March 31, 2023

Balance at the beginning of the fiscal year
Gains/losses or other comprehensive income in the period
Recorded in gains/losses *1

Amount of investment trusts for which net asset value is regarded as fair value from the period
Amount of investment trusts for which net asset value is not regarded as fair value fromthe period

—

—

—

Balance at the end of the fiscal year649

511,683

512,332

Valuation gains/losses on investment trusts held at the end of the period out of the amountrecorded in gains/losses for the period *1

(277)

1,419

1,142

*1. It is included in “Investment income “and “Investment expenses “in the consolidated statement of operations.
*2. It is included in “Valuation difference on available-for-sale securities” under “Other comprehensive income” of the consolidated statement of comprehensive income.

b. Breakdown of restriction regarding cancellation or buyback request of investment trusts whose properties are financial assets¥ millions

As of March 31, 2023

Having limitation in frequency, etc., of cancellation or buyback request

Trading securities

Available-for-salesecurities

Foreign othersecurities

Foreign othersecurities

Total

¥649

¥461,025¥461,674

Others—50,65850,658

Total

¥649

¥511,683¥512,332

c. Reconciliations between the beginning and ending balances of investment trusts whose properties are real estates¥ millions

Available for sale securities

As of March 31, 2023

Balance at the beginning of the fiscal year

Foreign othersecurities

Other securities

Total¥6,554¥51,212¥57,767
1,853

744

1,109

Recorded in gains/losses

—

—

—

Recorded in other comprehensive income*

744

1,109

1,853

Net amount for purchase, sale and redemption

—

3,873

3,873

Amount of investment trusts for which net asset value is regarded as fair value from the period

—

—

—

Gains/losses or other comprehensive income in the period

Amount of investment trusts for which net asset value is not regarded as fair value fromthe period
Balance at the end of the fiscal year
Valuation gains/losses on investment trusts held at the end of the period out of the amountrecorded in gains/losses for the period

—

—

—

7,298

56,19563,494———* It is included in “Valuation difference on available-for-sale securities” under “Other comprehensive income” of the consolidated statement of comprehensive income.

T&D Holdings Consolidated Financial Statements 2023

36

Note 21

Securities(1) Trading securities¥ millions

As of March 31,

2022

2023

Valuation difference included in earnings (losses) of the consolidated fiscal year¥(464)¥(3,056)(2) Held-to-maturity bonds¥ millions

As of March 31, 2022

Consolidatedbalance sheet amount

Fair value

Difference

Fair value exceeding consolidated balance sheet amount:
Domestic bonds¥800,086¥ 937,083¥136,997

Government bonds

661,803774,418

112,614

Municipal bonds

28,20034,264

6,064

Corporate bonds

110,081

128,400

18,318Foreign securities

932

933

0

Foreign bonds

932

933

0

Other securities

19,90320,931

1,028

Total

820,922958,948

138,025

Fair value not exceeding consolidated balance sheet amount:
Domestic bonds

76,71571,720(4,995)Government bonds

26,406

24,814(1,591)

Municipal bonds

19,182

18,439(743)

Corporate bonds

31,12628,466(2,659)Foreign securities

27,99526,338(1,657)

Foreign bonds

27,99526,338(1,657)

Other securities

65,43864,408(1,030)

Total

170,149

162,467(7,682)Grand total¥991,072¥1,121,415¥130,343

Note: Other securities include commercial paper (consolidated balance sheet amount of ¥11,999 million) and beneficiary trust certificates (consolidated balance sheet amount of ¥73,342 million) which are
represented as monetary claims purchased in the consolidated balance sheet.

¥ millions

As of March 31, 2023

Consolidatedbalance sheet amount

Fair value

Difference

Fair value exceeding consolidated balance sheet amount:¥710,922¥811,595¥100,673

Government bonds

577,866

660,661

82,794

Municipal bonds

28,02832,6274,599

Corporate bonds

105,027

118,306

13,279Foreign securities

2,000

2,012

12

Foreign bonds

2,000

2,012

12

Other securities

21,88722,745

858

Total

734,809836,354

101,544

Domestic bonds

Fair value not exceeding consolidated balance sheet amount:
80,053

69,226(10,826)

Government bonds

28,344

24,731(3,613)

Municipal bonds

19,023

17,486(1,537)

Corporate bonds

32,68527,008(5,676)

Foreign securities

28,58324,180(4,403)Foreign bonds

28,58324,180(4,403)

Other securities

66,48564,233(2,251)

Total

175,123

157,640(17,482)

Grand total¥909,932¥993,994¥ 84,062

Domestic bonds

Note: Other securities include commercial paper (consolidated balance sheet amount of ¥5,999 million) and beneficiary trust certificates (consolidated balance sheet amount of ¥82,373 million) which are
represented as monetary claims purchased in the consolidated balance sheet.

37

T&D Holdings Consolidated Financial Statements 2023

(3) Policy reserve-matching bonds¥ millions

As of March 31, 2022

Consolidatedbalance sheet amount

Fair value

Difference

Fair value exceeding consolidated balance sheet amount:
Domestic bonds¥2,341,920¥2,656,310¥314,389

Government bonds

1,572,496

1,792,004

219,507

Municipal bonds

150,057

167,400

17,343

Corporate bonds

619,367

696,905

77,538Foreign securities

30,771

31,664893

Foreign bonds

30,771

31,664893

2,372,691

2,687,974

315,282

2,150,240

2,002,821(147,419)

Government bonds

1,468,562

1,368,422(100,140)

Municipal bonds

167,342

155,459(11,882)

Corporate bonds

514,335

478,939(35,396)

23,624

22,673

(951)

Total
Fair value not exceeding consolidated balance sheet amount:
Domestic bonds

Foreign securities
Foreign bonds

23,624

22,673

(951)

Total

2,173,865

2,025,494(148,370)

Grand total¥4,546,557¥4,713,469¥166,912¥ millions

As of March 31, 2023

Consolidatedbalance sheet amount

Fair value

Difference

Fair value exceeding consolidated balance sheet amount:¥2,347,571¥2,584,408¥ 236,837

Government bonds

1,692,051

1,859,508

167,457

Municipal bonds

123,464

135,752

12,287

Corporate bonds

532,055

589,147

57,092Foreign securities

7,229

7,316

86

Foreign bonds

7,229

7,316

86

2,354,801

2,591,724

236,923

Domestic bonds

Total
Fair value not exceeding consolidated balance sheet amount:

2,432,498

2,112,181(320,316)

Government bonds

1,648,764

1,425,686(223,078)

Municipal bonds

192,895

171,495(21,399)

Corporate bonds

Domestic bonds

590,837

514,999(75,837)

Foreign securities

32,13230,942(1,189)Foreign bonds

32,13230,942(1,189)Total

2,464,630

2,143,124(321,506)

Grand total¥4,819,431¥4,734,848¥ (84,582)

T&D Holdings Consolidated Financial Statements 2023

38

(4) Available-for-sale securities¥ millions

As of March 31, 2022

Consolidated balance sheet amount exceeding acquisition cost:
Domestic bonds
Government bonds
Municipal bonds
Corporate bonds
Domestic stocks
Foreign securities
Foreign bonds
Foreign stocks
Foreign other securities
Other securities
Total
Consolidated balance sheet amount not exceeding acquisition cost:
Domestic bonds
Government bonds
Municipal bonds
Corporate bonds
Domestic stocks
Foreign securities
Foreign bonds
Foreign stocks
Foreign other securities
Other securities
Total
Grand total

Consolidatedbalance sheet amount

Acquisition cost

Difference¥1,117,903
147,227
43,851
926,824
653,835
2,732,590
1,216,470
23,581
1,492,539
431,860
4,936,190¥1,071,921
132,430
41,018898,472
365,2392,450,671
1,159,792
20,806
1,270,073
363,824
4,251,657¥45,981
14,7962,833
28,352
288,595
281,918
56,677
2,774
222,466
68,036
684,532

440,243
155,203
3,715
281,325
91,4901,448,062
947,606171
500,283
132,989
2,112,785¥7,048,976

458,025
166,775
3,808
287,441
101,710
1,513,499
993,745178
519,575
135,335
2,208,571¥6,460,228(17,781)(11,572)(92)(6,115)(10,219)(65,437)(46,138)(7)(19,291)(2,346)(95,785)¥588,747

Note: Other securities include certificates of deposit (consolidated balance sheet amount of ¥56,000 million) which are represented as cash and deposits, commercial paper (consolidated balance sheet amountof ¥27,999 million) and beneficiary trust certificates (consolidated balance sheet amount of ¥54,572 million) which are represented as monetary claims purchased in the consolidated balance sheet.

¥ millions

As of March 31, 2023

Consolidated balance sheet amount exceeding acquisition cost:
Domestic bonds
Government bonds
Municipal bonds
Corporate bonds
Domestic stocks
Foreign securities
Foreign bonds
Foreign stocks
Foreign other securities
Other securities
Total
Consolidated balance sheet amount not exceeding acquisition cost:
Domestic bonds
Government bonds
Municipal bonds
Corporate bonds
Domestic stocks
Foreign securities
Foreign bonds
Foreign stocks
Foreign other securities
Other securities
Total
Grand total

Consolidatedbalance sheet amount

Acquisition cost

Difference¥ 466,529
206,558
28,761
231,209607,181
1,377,602
182,801
23,576
1,171,224
415,391
2,866,705¥ 442,878
193,065
26,893
222,919
351,670
1,169,919
175,941
21,768972,209353,2712,317,739¥ 23,651
13,493
1,868
8,289
255,511
207,6836,860
1,808
199,015
62,120548,966

871,842
190,611
13,305667,924
54,256
1,812,876
1,047,126
321
765,427
116,0392,855,014¥5,721,720

916,392
210,824
13,701
691,865
58,8712,033,705
1,210,830
323
822,552
119,487
3,128,457¥5,446,196(44,550)(20,212)(395)(23,941)(4,614)(220,829)(163,703)(1)(57,124)(3,448)(273,443)¥ 275,523

Note: Other securities include certificates of deposit (consolidated balance sheet amount of ¥43,000 million) which are represented as cash and deposits, commercial paper (consolidated balance sheet amountof ¥19,999 million) and beneficiary trust certificates (consolidated balance sheet amount of ¥47,660 million) which are represented as monetary claims purchased in the consolidated balance sheet.

39

T&D Holdings Consolidated Financial Statements 2023

(5) Sales of securities classified as held-to-maturity bonds– There were no sales of securities classified as held-to-maturity bonds for the year ended March 31, 2022.
– There were no sales of securities classified as held-to-maturity bonds for the year ended March 31, 2023.

(6) Sales of securities classified as policy reserve-matching bonds¥ millions

Year ended March 31, 2022

Proceeds of sales

Gross gains

Gross losses¥53,125
15,94337,182966
966¥54,092¥2,892
2,662
229
18
18
¥2,910

¥355
10
344
7
7
¥363

Proceeds of sales

Gross gains

Gross losses¥ 89,655
65,134
24,52026,797
26,797¥116,452¥ 9,225
7,444
1,781
1,586
1,586
¥10,811

¥101
—
101
585
585
¥686

Year ended March 31, 2022

Proceeds of sales

Gross gains

Gross losses

Domestic bonds
Government bonds
Municipal bonds
Corporate bonds
Domestic stocks
Foreign securities
Foreign bonds
Foreign stocks
Foreign other securities
Other securities
Total¥ 280,252
192,240
6,119
81,89235,655709,365
685,683
666
23,015
11,082¥1,036,356

541
15
—
525
6,699
12,967
9,228
38
3,700
675
¥20,883¥ 4,390
3,172
739
477
3,700
16,614
12,1174,496—
0¥24,706

Year ended March 31, 2023

Proceeds of sales

Gross gains

Gross losses

Domestic bonds
Government bonds
Municipal bonds
Corporate bonds
Domestic stocks
Foreign securities
Foreign bonds
Foreign stocks
Foreign other securities
Other securities
Total¥ 328,436
13,906
2,861
311,668
130,853
1,253,059
1,152,848
19
100,190
20,173¥1,732,523¥ 9,313
228
91
8,993
61,11339,06422,748—16,316
4,618¥114,108¥ 2,837
399
—
2,437
3,419
44,76043,9857
767
275¥51,293

Domestic bonds
Government bonds
Corporate bonds
Foreign securities
Foreign bonds
Total¥ millions

Year ended March 31, 2023

Domestic bonds
Government bonds
Corporate bonds
Foreign securities
Foreign bonds
Total(7) Sales of securities classified as available-for-sale securities¥ millions¥¥ millions

T&D Holdings Consolidated Financial Statements 2023

40

(8) Impairment of securities

bonds, ¥282 million as impairment losses for the available-for-

The Company and its consolidated subsidiaries recognized ¥148

sale securities other than stocks without market prices and themillion as impairment losses for the available-for-sale securities

Investments in capital of partnerships and so forth for the fiscal

other than stocks without market prices and the Investments inyears ended March 31, 2023.

capital of partnerships and so forth for the fiscal years ended
March 31, 2022.
The Company and its consolidated subsidiaries recognized¥204 million as impairment losses for the policy reserve matching

Note 22

The Company and its consolidated subsidiaries recognize
impairment losses on the securities in principle if fair value as ofthe end of the fiscal year declines by 30% or more from theiracquisition cost.

Monetary Trusts(1) Monetary trusts for trading purposes¥ millions

As of March 31,

2022

2023

Valuation difference included in earnings (losses) of the consolidated fiscal year

¥50

¥14

(2) Monetary trusts for held-to-maturity purposes¥ millions

As of March 31, 2022

Monetary trusts

Consolidatedbalance sheet amount

Fair value

Difference¥30,331¥30,162¥(168)¥ millions

As of March 31, 2023

Monetary trusts

Consolidatedbalance sheet amount

Fair value

Difference¥30,485¥29,040¥(1,444)(3) Monetary trusts for policy reserve-matching purposes¥ millions

As of March 31, 2022

Monetary trusts

Consolidatedbalance sheet amount

Fair value

Difference¥1,022,045¥1,012,072¥(9,973)¥ millions

As of March 31, 2023

Monetary trusts

Consolidatedbalance sheet amount

Fair value

Difference¥929,828¥891,528¥(38,299)(4) Monetary trusts for those other than trading, held-to-maturity or policy reserve-matching purposes¥ millions

As of March 31, 2022

Monetary trusts

Consolidatedbalance sheet amount

Acquisition cost

Difference¥267,748¥255,685¥12,062¥ millions

As of March 31, 2023

Monetary trusts

41

T&D Holdings Consolidated Financial Statements 2023

Consolidatedbalance sheet amount

Acquisition cost

Difference¥252,427¥252,611¥(183)

Note 23

Derivative Transactions(1) Derivative financial instruments for which hedge accounting is not applied
a. Currency-related transactions¥ millions

Notional amount
As of March 31, 2022

Over-the-counter transactions:
Foreign exchange contracts:
Sold
U.S. dollar
Euro
British pound
Canadian dollar
Australian dollar
Swiss franc
BoughtU.S. dollar
Euro
British pound
Australian dollar
Currency swaps:
Receive yen/pay foreign currency
Indian Rupee
Receive foreign currency/pay yen
U.S. dollar
Australian dollar
Total

Total

Over one year

Fair value

Valuation gains(losses)¥324,606
121,532
73,23942,467
8,667
74,6294,070
70,61818,14432,731
11,818
7,923

¥ —
—
—
—
—
—
—
—
—
—
—
—

¥(12,174)(4,609)(648)(1,041)(410)(5,211)
(252)
364
21
74
(55)
324

¥(12,174)(4,609)(648)(1,041)(410)(5,211)
(252)
364
21
74
(55)
324

6,480
6,480
14,431
662
13,769

—
—
—
—
—

(663)
(663)
1,455
47
1,407

(663)
(663)
1,455
47
1,407
¥(11,018)

Note: A ssets and liabilities denominated in foreign currencies, which have fixed settlement amounts in yen under forward exchange contracts and are disclosed in yen amounts in the consolidated balance
sheet, are not subject to this disclosure.
¥ millions

Notional amount
As of March 31, 2023

Over-the-counter transactions:
Foreign exchange contracts:
Sold
U.S. dollar
Euro
British pound
Canadian dollar
Australian dollar
Swiss franc
BoughtU.S. dollar
Australian dollar
Currency options:
Sold
Call
U.S. dollar
BoughtPut
U.S. dollar
Total

Total

Over one year

Fair value

Valuation gains(losses)¥272,566
71,47425,98837,112
16,527
117,834
3,629
44,46233,393
11,068

¥ —
—
—
—
—
—
—
—
—
—

¥(3,329)
(731)
(481)
(1,230)
(222)
(555)
(107)
424
349
75

¥(3,329)
(731)
(481)
(1,230)
(222)
(555)
(107)
424
349
75

209,177[648]
209,177
[648]

—
[—]
—
[—]

187

461

187

461

181,202[648]
181,202
[648]

—
[—]
—
[—]

280

(367)

280

(367)
¥(2,811)

Notes:
1. Assets and liabilities denominated in foreign currencies, which have fixed settlement amounts in yen under forward exchange contracts and are disclosed in yen amounts in the consolidated balance
sheet, are not subject to this disclosure.
2. Figures in square brackets for “Notional amount” represent option premiums that are reported on the consolidated balance sheet.

T&D Holdings Consolidated Financial Statements 2023

42

b. Interest-related transactions¥ millions

Notional amount
Total

Over one year

Fair value

Valuation gains(losses)¥15,873¥14,849¥11,043¥11,043

As of March 31, 2022

Over-the-counter transactions:Interest rate swaps:
Receive fixed/pay floating
Total¥11,043

As of March 31, 2023
There were no Interest-related transactions for the year ended March 31, 2023.
c. Stock-related transactions¥ millions

Notional amount
As of March 31, 2022

Total

Over one year

¥44,999

¥—

[846]

[—]

Fair value

Valuation gains(losses)Market transactions:
Stock index options:
Bought
Put

484

Total

(362)
¥(362)

Note: Figures in square brackets for “Notional amount” represent option premiums that are reported on the consolidated balance sheet.
¥ millions

Notional amount
As of March 31, 2023

Total

Over one year

¥30,000

¥—

[499]

[—]

Fair value

Valuation gains(losses)

1

(497)

161

66

Market transactions:
Stock index options:
BoughtPutOver-the-counter transactions:
Stock index options:
Sold
Call

60,145

—

[228]

[—]

BoughtPut

50,162

—

[205]

[—]

Total
Note: Figures in square brackets for “Notional amount” represent option premiums that are reported on the consolidated balance sheet.

43

T&D Holdings Consolidated Financial Statements 2023

59

(145)
¥(576)

T&D Financial Life uses monetary trusts to execute derivative transactions. The following tables show a summary of the notional amountand fair value of derivative financial instruments.
¥ millions

Notional amount
As of March 31, 2022

Total

Over one year

Fair value

Valuation gains(losses)Over-the-counter transactions:
Currency-related transactions:
Foreign exchange contracts:
Sold¥15,422
U.S. dollar¥

15,422

—

¥ 3

—

3

¥

3
3

34

(191)

21

(123)

13

(67)

Currency options:
BoughtPut
U.S. dollar
Euro

840

627

[225]

[170]

492

378

[144]

[112]

348

249

[81]

[57]

1,811

1,477

[395]

[330]

Stock-related transactions:
Stock index options:
Bought
Put

62

Total

(333)
¥(521)

Note: Figures in square brackets for “Notional amount” represent option premiums that are reported on the consolidated balance sheet.
¥ millions

Notional amount
As of March 31, 2023

Total

Over one year

Fair value

Valuation gains(losses)¥Over-the-counter transactions:
Currency-related transactions:
Foreign exchange contracts:¥166,641—¥(3,440)¥(3,440)

166,641—(3,440)(3,440)29,096

—

453

453

U.S. dollar

19,821

—

321

321

Australian dollar

9,274

—

132

132

22

(148)

12

(100)

9

(47)

Sold
U.S. dollar
BoughtCurrency options:
BoughtPut
U.S. dollar
Euro

627

440

[170]

[121]

378

282

[112]

[86]

249

157

[57]

[34]

1,477

1,193

[330]

[271]

Over-the-counter transactions:
Stock-related transactions:
Stock index options:
Bought
Put

39

(290)
¥(3,425)

Total
Note: Figures in square brackets for “Notional amount” represent option premiums that are reported on the consolidated balance sheet.

T&D Holdings Consolidated Financial Statements 2023

44

(2) Derivative financial instruments for which hedge accounting is applied
a. Currency-related transactions¥ millions

Notional amount
As of March 31, 2022

Recognition of valuation gains/losses on hedged items:
Foreign exchange contracts:
Sold
U.S. dollar
Euro
British pound
Canadian dollar
Swedish krona
Australian dollar
Polish zloty
Danish krone
Singapore dollar
Norwegian krone
BoughtU.S. dollar
Euro
British pound
Australian dollar
Allocation treatment for foreign exchange contracts, etc.:
Foreign exchange contracts:
Sold
U.S. dollar
Australian dollar
Currency swaps:
Receive yen/pay foreign currency
U.S. dollar
Total

Hedged item

Foreign currencydenominated assets

Certificates of deposit inforeign currencies

Foreign currencydenominated loans

Total

Over one year

Fair value

¥

—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—

¥(172,018)(115,964)(35,252)(2,770)(4,560)(19)(13,148)
(22)
(59)
(97)
(124)
(30)
(283)
255
8
(9)

17,0005,000
12,000————37,93737,93737,93737,937——¥(172,048)¥3,489,524
2,546,920
673,007
94,21356,664421
111,792
1,728
1,571
1,808
1,396
266,184
201,503
61,9711,570
1,139

Note: Fair value of foreign exchange contracts, etc., with allocation treatments are included in the relevant certificates of deposit in foreign currencies and foreign currency-denominated loans because they
are the hedged assets for each of these contracts and the assets are treated as a unit.
¥ millions

Notional amount
As of March 31, 2023

Recognition of valuation gains/losses on hedged items:
Foreign exchange contracts:
Sold
U.S. dollar
Euro
British pound
Canadian dollar
Australian dollar
Polish zloty
Danish krone
Singapore dollar
BoughtU.S. dollar
Euro
Allocation treatment for foreign exchange contracts, etc.:
Foreign exchange contracts:
Sold
U.S. dollar
BoughtU.S. dollar
Currency swaps:
Receive yen/pay foreign currency
U.S. dollar
Total

Hedged item

Foreign currencydenominated assets

Certificates of deposit inforeign currencies
Capital in foreign currencies(forecast transaction)
Foreign currencydenominated loans

Total

Over one year

Fair value

¥

—
—
—
—
—
—
—
—
—
—
—
—

¥(21,153)(8,729)(11,513)(1,077)
(140)
513
(100)
(55)
(48)
83
49
33

7,000
7,000
32,75232,752

—
—
—
—

—
—
539
539

37,93737,93729,44229,442——¥(20,530)¥2,206,080
1,664,544
445,778
33,665
12,91943,801
1,713
1,511
2,145
159,578
149,626
9,952

Note: F air value of foreign exchange contracts, etc., with allocation treatments are included in the relevant certificates of deposit in foreign currencies and foreign currency-denominated loans because they
are the hedged assets for each of these contracts and the assets are treated as a unit.

45

T&D Holdings Consolidated Financial Statements 2023

b. Interest-related transactions¥ millions

Notional amount
As of March 31, 2022

Hedged item

Total

Over one year

Fair value¥21,804¥17,804¥262

Special treatment for interest rate swaps:
Interest rate swaps:
Receive fixed/pay floating

Loans

Total

¥262
¥ millions

Notional amount
As of March 31, 2023

Hedged item

Total

Over one year

Fair value¥17,408¥14,628¥134

Special treatment for interest rate swaps:
Interest rate swaps:
Receive fixed/pay floating

Loans

¥134

Total

Note 24

Employees’ Retirement Benefits(1) Overview of the retirement benefit plan adopted by the T&D Insurance GroupThe Company and domestic consolidated subsidiaries have defined benefit retirement plans such as a defined benefit corporate pension
plan, a retirement pension plan, and a retirement lump-sum payment plan. Further, certain companies have defined contribution pension
plans as their defined contribution retirement plan as well as retirement benefit trusts.

(2) Defined benefit retirement plana. Reconciliations of the beginning- and end-of-the-year balances of retirement benefit obligations are as follows:¥ millions

2022

2023

¥154,825¥149,749

Service cost

6,462

6,001

Interest cost

753

946

Actuarial gains and losses(2,861)(3,029)Retirement benefit paid

(7,489)(6,471)

Accrual of past service costs(1,940)—Years ended March 31,

Balance at the beginning of the year

OthersBalance at the end of the year—

(1)

¥149,749¥147,194

Note: Retirement benefit expense for companies using the simplified method is recorded in service cost.

b. Reconciliations of the beginning- and end-of-the-year balances of pension plan assets are as follows:¥ millions

Years ended March 31,

Balance at the beginning of the year

2022

2023

¥110,912¥110,455

Expected return on plan assets

1,013

1,369

Actuarial gains and losses(1,267)(3,068)

Employer contribution

5,743

5,137

Benefit obligation paid

(5,946)(4,773)¥110,455¥109,119

Balance at the end of the year

T&D Holdings Consolidated Financial Statements 2023

46

c.	Reconciliations of retirement benefit obligations and pension plan assets to net defined benefit liabilities and net defined benefit
assets stated in the consolidated balance sheet are as follows:¥ millions

2022

2023

Retirement benefit obligations for funded plans¥ 122,356¥ 120,042

Plan assets(110,455)(109,119)[(61,784)][(59,216)]

As of March 31,

Employee pension trusts

11,901

10,922Retirement benefit obligations for unfunded plans

27,392

27,151

Net amount of defined benefit liability and defined benefit asset stated in the consolidated balance sheet

39,29338,074

Defined benefit liability

42,14540,818

Defined benefit asset(2,851)(2,744)¥ 39,293¥ 38,074

Net amount of defined benefit liability and defined benefit asset stated in the consolidated balance sheetd. Components of retirement benefit expense are as follows:¥ millions

Years ended March 31,

Service cost

2022

2023

¥ 6,462¥ 6,001

753

946

Expected return on plan assets(1,013)(1,369)

Recognized actuarial gains and losses(1,594)38

Recognized past service costs(1,940)—Retirement benefit expense relating to defined benefit retirement plan

¥ 2,667¥ 5,616

Interest cost

Note: Retirement benefit expense for companies using the simplified method is recorded in service cost.

e. Matters related to pension plan assets(i) Components of pension plan assets are as follows:
2022

2023

Bonds

66.4%

62.9%

General account

12.7

13.3

Foreign securities

9.8

8.6

Cash and deposits

4.4

7.9

Stocks

5.1

4.9

Joint assets

0.7

0.8

Others

0.9

1.6

Total

100.0%

100.0%

As of March 31,

Note: The total includes 55.9% and 54.3% of employee pension trusts set up for corporate pension plans for the fiscal years ended March 31, 2022 and 2023, respectively.

(ii) The setting method for long-term expected rate of return
The long-term expected rate of return on pension plan assets is set by considering the present and the prospective asset allocation of pension plan assets, as well as the present and the expected long-term rate of return arising from various assets thatcomprise the plan assets.
f.

Matters related to actuarial basis
2022

2023

Discount rate

0.24% – 0.80%

0.38% – 1.06%

Expected long-term rate of return on plan assets

0.25% – 1.90%

0.42% – 2.96%

Years ended March 31,(3) Defined contribution retirement plan
The required contribution for the defined contribution retirement plan of the consolidated subsidiaries amounted to ¥279 million and¥278 million for the fiscal years ended March 31, 2022 and 2023, respectively.

47

T&D Holdings Consolidated Financial Statements 2023

Note 25

Stock Options(1) Amount of expenses related to stock options
There were no operating expenses related to stock options for the fiscal years ended March 31, 2022 and 2023.

(2) Details, size and status of stock options
a. Details of stock options
T&D Holdings, Inc. stock subscription rights (1st series)

Title and number of grantees

Directors (excluding outside directors) and executive officers of the Company: 7
Directors (excluding outside directors) and executive officers of subsidiaries of the Company: 40

Number of stock options by class*Common stock: 449,600 shares

Grant dateJuly 31, 2012

Conditions for vesting

Stock options are vested on the grant date.

Requisite service period

Not applicable

Exercise period

August 1, 2012 to July 31, 2042

* Translated to the number of common stock.

T&D Holdings, Inc. stock subscription rights (2nd series)

Title and number of grantees

Directors (excluding outside directors) and executive officers of the Company: 7
Directors (excluding outside directors) and executive officers of subsidiaries of the Company: 39

Number of stock options by class*Common stock: 235,500 shares

Grant dateAugust 1, 2013

Conditions for vesting

Stock options are vested on the grant date.

Requisite service period

Not applicable

Exercise period

August 2, 2013 to August 1, 2043

* Translated to the number of common stock.

T&D Holdings, Inc. stock subscription rights (3rd series)

Title and number of grantees

Directors (excluding outside directors) and executive officers of the Company: 6
Directors (excluding outside directors) and executive officers of subsidiaries of the Company: 41

Number of stock options by class*Common stock: 231,300 shares

Grant dateAugust 1, 2014

Conditions for vesting

Stock options are vested on the grant date.

Requisite service period

Not applicable

Exercise period

August 2, 2014 to August 1, 2044

* Translated to the number of common stock.

T&D Holdings, Inc. stock subscription rights (4th series)

Title and number of grantees

Directors (excluding outside directors) and executive officers of the Company: 15
Directors (excluding outside directors) and executive officers of subsidiaries of the Company: 43

Number of stock options by class*Common stock: 170,700 shares

Grant dateAugust 3, 2015

Conditions for vesting

Stock options are vested on the grant date.

Requisite service period

Not applicable

Exercise period

August 4, 2015 to August 3, 2045

* Translated to the number of common stock.

T&D Holdings Consolidated Financial Statements 2023

48

T&D Holdings, Inc. stock subscription rights (5th series)

Title and number of grantees

Directors (excluding outside directors) and executive officers of the Company: 10
Directors (excluding outside directors) and executive officers of subsidiaries of the Company: 48

Number of stock options by class*Common stock: 379,800 shares

Grant dateAugust 1, 2016

Conditions for vesting

Stock options are vested on the grant date.

Requisite service period

Not applicable

Exercise period

August 2, 2016 to August 1, 2046

* Translated to the number of common stock.

T&D Holdings, Inc. stock subscription rights (6th series)

Title and number of grantees

Directors (excluding outside directors) and executive officers of the Company: 10
Directors (excluding outside directors) and executive officers of subsidiaries of the Company: 47

Number of stock options by class*Common stock: 208,200 shares

Grant dateAugust 1, 2017

Conditions for vesting

Stock options are vested on the grant date.

Requisite service period

Not applicable

Exercise period

August 2, 2017 to August 1, 2047

* Translated to the number of common stock.

b. Size and status of stock options
	For stock options which existed during the consolidated fiscal year ended March 31, 2023, the number of stock options is translated
to the number of common stock.
(i) Number of stock options
T&D Holdings, Inc.
stock subscription rights (1st series)

T&D Holdings, Inc.
stock subscription rights (2nd series)

T&D Holdings, Inc.
stock subscription rights (3rd series)

Before vesting:
At the end of previous fiscal year

—

—

—

Granted———Forfeited———

Vested———Outstanding

—

—

—

87,800 shares

56,500 shares

70,400 shares

—

—

—

Exercised

14,500 shares

8,200 shares

10,400 shares

Forfeited———

73,300 shares

48,300 shares

60,000 shares

T&D Holdings, Inc.
stock subscription rights (4th series)

T&D Holdings, Inc.
stock subscription rights (5th series)

T&D Holdings, Inc.
stock subscription rights (6th series)

After vesting:
At the end of previous fiscal year
VestedExercisable

Before vesting:
At the end of previous fiscal year

—

—

—

Granted———Forfeited———

Vested———Outstanding

—

—

—

68,100 shares

167,600 shares

123,600 shares

—

—

—

Exercised

8,900 shares

22,700 shares

15,000 shares

Forfeited———

59,200 shares

144,900 shares

108,600 shares

After vesting:
At the end of previous fiscal year
VestedExercisable

49

T&D Holdings Consolidated Financial Statements 2023

(ii) Unit price information
T&D Holdings, Inc.
stock subscription rights (1st series)

T&D Holdings, Inc.
stock subscription rights (2nd series)

T&D Holdings, Inc.
stock subscription rights (3rd series)

1 yen

1 yen

1 yen

1,671 yen

1,672 yen

1,668 yen

685 yen

1,143 yen

1,153 yen

T&D Holdings, Inc.
stock subscription rights (4th series)

T&D Holdings, Inc.
stock subscription rights (5th series)

T&D Holdings, Inc.
stock subscription rights (6th series)

Exercise price
Average stock price at the time of exercise
Fair value at the granted date

1 yen

1 yen

1 yen

Average stock price at the time of exercise

Exercise price

1,678 yen

1,663 yen

1,672 yen

Fair value at the granted date

1,708 yen

918 yen

1,485 yen(3) Method for estimating the number of stock options vested
Only the actual number of forfeited stock options is reflected because it is difficult to rationally estimate the actual number of stock
options that will be forfeited in the future.

Note 26

Asset Retirement Obligations

Asset retirement obligations recorded in the consolidated balance sheet are as follows:(1) Overview of the asset retirement obligations
Asbestos removal obligations for office buildings and rental properties are recorded as asset retirement obligations.
(2) Calculation method for the amount of the asset retirement obligations
For the estimation of the present value of asset retirement obligations, 50 years from the acquisition of buildings is used as an estimated period before the cost will accrue and 2.11% as a discount rate.
(3) Increase or decrease of the total amount of the asset retirement obligations¥ millions

Years ended March 31,

Balance at the beginning of the year
Time progress adjustment
Balance at the end of the year

Note 27

2022

2023

¥2,128¥2,17345

26¥2,173¥2,200Real Estate for Rent

Some subsidiaries own real estate for rent, consisting mainly of office buildings in major cities in Japan. Their balance sheet amount, net
increase or decrease and fair value at the end of the year are as follows:¥ millions

Years ended March 31,

2022

2023

¥271,658¥270,624(1,033)

9,289

Balance sheet amount:
Balance at the beginning of the year
Net increase (decrease)
Balance at the end of the year

270,624

279,913

Fair value at the end of the year

¥374,605¥393,472

Notes:
1. Balance sheet amount represents acquisition cost less accumulated depreciation and accumulated impairment losses. Balances at the end of the year for the years ended March 31, 2022 include amounts
related to asset retirement obligations of ¥2 million. (Balances at the end of the year for the years ended March 31, 2023 do not include amounts related to asset retirement obligations)
2. For the year ended March 31, 2022, the increase mainly consisted of purchase of real estate totaling ¥3,822 million and the decrease mainly consisted of depreciation totaling ¥5,606 million.
For the year ended March 31, 2023, the increase mainly consisted of purchase of real estate totaling ¥16,583 million and the decrease mainly consisted of depreciation totaling ¥5,539 million.
3. Fair value at the end of the year of major properties is calculated based on their appraisal value by external real estate appraisers. The value of other properties is calculated in-house based on the posted price.

T&D Holdings Consolidated Financial Statements 2023

50

Gains (losses) on real estate for rent are as follows:¥ millions

2022

2023

Ordinary revenues¥21,135¥21,677

Ordinary expenses

12,066

12,510Ordinary profit

9,069

9,166

Other gains(losses)

(601)

601

Years ended March 31,

Notes:
1. Ordinary revenues and ordinary expenses constitute income from lease and corresponding expenses, such as depreciation, repair expenses, insurance expenses and taxes. These amounts are recorded ininvestment income and investment expenses.
2. For the year ended March 31, 2022, other losses were losses on disposal of fixed assets, and these amounts are recorded in extraordinary losses.
For the year ended March 31, 2023, other gains were mainly gains on disposal of fixed assets, and these amounts are recorded in extraordinary gains.

Note 28

Revenue Recognition

Revenues arising from contracts with customers for the Company

b. Information on determining the transaction priceare immaterial since a large part of Ordinary revenues, substi-c.	Information on the calculation of the price allocated to atute for Sales, consists of Income from insurance premiums andInvestment income not subject to the “Accounting Standard
for Revenue Recognition” (ASBJ Statement No. 29, issued on
March 31, 2020) in accordance with Paragraph 3 of the standard.
Therefore, the Company disclose the revenues without separatingfrom other revenues on the consolidated statement of operations

performance obligationd.	Information regarding the timing of satisfaction of performance obligationse.	Significant judgements on applying the Revenue
Recognition Accounting Standard(3)	Information about the relationship between the satisfaction

as well as disclose contract assets, contract liabilities and claimsof performance obligations under contracts with customers

arising from contracts with customers without separating fromand cash flows from these contracts, and the amount andother assets and liabilities on the consolidated balance sheet.

timing of revenue from contracts with existing customers

Also, the Company omit notes on the following information.

at the end of the current fiscal year that are expected to be(1)	Information on disaggregated revenue arising from contracts

recognized in the following fiscal year or beyond

with customers(2)	Information providing a basis for understanding revenue
arising from contracts with customers

a. Balance of contract assets and contract liabilities, etc.
b.	Transaction price allocated to remaining performanceobligationsa.	Information on contracts with customers and performance obligations

Note 29

Segment Information(1) Overview of reportable segments

the households market, Daido Life focuses on the small and

The reportable segments of the Company are components of themedium enterprises market and T&D Financial Life focuses on

Company for which separate financial information is available.

independent insurance agent market and each company has

These segments are subject to regular review by the Company’s

different products under its unique marketing strategy.

Board of Directors to determine the allocation of business resources and evaluate business performances.
The Company is an insurance holding company which man-51

In addition, T&D United Capital, which is a main entity topromote “diversification and optimization of business portfolio,”
aims to increase the Group’s revenue over the mid-and-longages life insurance companies and other subsidiaries in accor-

term through the investment in new business fields with a strong

dance with the Insurance Business Act. Under the Company, theaffinity for the life insurance business. Therefore, the Company’s

Three Life Insurance Companies, with unique product strategies

four reportable segments are the Taiyo Life Insurance Company

and sales strategies, operate life insurance business which issegment, the Daido Life Insurance Company segment, the T&D

the Group’s core business. Each of the Three Life Insurance

Financial Life Insurance Company segment and the T&D United

Companies focuses on different markets. Taiyo Life focuses on

Capital Company (consolidated) segment.

T&D Holdings Consolidated Financial Statements 2023

(2)	Method for calculating ordinary revenues, income or loss, assets and liabilities, and others by reportable segment
The method for the accounting treatment of the reportable segments is the same as described in “Note 2. Summary of Significant
Accounting Policies.”(3) Information on ordinary revenues, income or loss, assets and liabilities, and others by reportable segment¥ millions

Reportable segments

Taiyo Life

Daido Life

T&D
Financial Life

¥1,438,620¥1,032,090¥ 485,311

1,272

600

—

1,439,893

1,032,690(86,642)

122,780

Segment assets

7,693,272

Segment liabilities

Year ended March 31, 2022

Ordinary revenues
Intergroup transfers

T&D United
Capital(consolidated)¥

OthersSubtotal

99 ¥ 2,956,122

¥

Total

Amount on
consolidated
financialstatements

Adjustments

60,321 ¥ 3,016,443¥(402,066) ¥ 2,614,377

—

1,872

136,823

138,696(138,696)—

485,31199

2,957,994

197,145

3,155,140(540,763)

2,614,377

5,667(8,655)33,149128,169

161,319(104,290)

57,0297,837,366

2,007,568

142,948

17,681,155

1,118,237

18,799,393(985,984)

17,813,408

7,351,808

6,978,638

1,943,616

82,852

16,356,915

289,674

16,646,589(222,688)

16,423,901

Depreciation of realestate for rent

3,689

2,718

—

—

6,407

—

6,407

(536)

5,871

Depreciation

Total
Segment income (loss)

Others

6,541

5,809

842

0

13,193688

13,882453

14,335

Provision for (reversal of)policy reserve(654,503)

211,563

182,632—(260,306)

361(259,945)—(259,945)

Provision for (reversal of)reserve for policyholder
dividends

12,572

11,711(0)—

24,284—24,284—24,284

Interest, dividends andincome from real estate
for rent

151,836

162,851

7,015—

321,703

128,205449,909(130,063)

319,845

1,035

11

4

805

1,858

1,324

3,183

(1,492)

1,690
16,749Interest expenses
Equity in earnings (losses)of affiliates

—

—

—

(6,099)(6,099)—(6,099)22,849Extraordinary gains

254

92

—

—

347

120

467

—

467

Extraordinary losses

3,920

5,359

880

—

10,160124

10,284(0)

10,283

Impairment losses

31

—

—

—

31

—

31

—

31

Provision for reservefor price fluctuations
Taxes
Investments in affiliatedcompanies
Increase in tangible fixed
assets and intangible
fixed assets

¥

3,740

3,972

880

—

8,593

—

8,593

—

8,593

(28,734)

29,578

1,589

(744)

1,688

452

2,141

6,368

8,510

900

365

—

78,74380,009—80,009—80,009911 ¥21,293(83) ¥

21,2098,995¥

10,240

¥

1,110

¥

35 ¥

20,381¥¥

Notes:
1. Ordinary revenues instead of net sales are presented here.
2. Adjustments are as follows:(1) The adjustment of ¥(402,066 million) to ordinary revenues is the transferred amount, which mainly consists of provision for policy and other reserves of ¥394,558 million, and equity in losses of affiliates of ¥6,099 million of ordinary expenses which are in ordinary revenue of the consolidated statement of operations as reversal for policy and other reserves and equity in earnings of affiliates.
(2) The adjustment of ¥(104,290 million) to segment income (loss) is mainly due to the elimination of dividends from subsidiaries and affiliates.
(3) The adjustment of ¥(985,984 million) to segment assets is mainly due to the elimination of investments in stocks of subsidiaries and affiliates.
(4) The adjustment of ¥(222,688 million) to segment liabilities is mainly due to the elimination of intersegment receivables and payables.
3. Segment income (loss) is adjusted to align with the ordinary profit set forth in the consolidated statement of operations.

T&D Holdings Consolidated Financial Statements 2023

52

¥ millions

Reportable segments

Taiyo Life

Daido Life

T&D
Financial Life¥ 960,026¥1,232,218¥ 980,991

Year ended March 31, 2023

Ordinary revenues

T&D United
Capital(consolidated)¥

OthersSubtotal

2,318 ¥ 3,175,556

¥

Total

39,665 ¥ 3,215,221

Amount on
consolidated
financialstatements

Adjustments¥(1,110) ¥ 3,214,110

Intergroup transfers

1,316

823

—

137

2,277

80,25582,533(82,533)—

Total

961,343

1,233,042

980,991

2,456

3,177,834

119,920

3,297,754(83,644)3,214,110

48,144

84,07911,054(213,261)(69,982)

47,583(22,399)(51,745)(74,144)

Segment assets

7,354,754

7,464,151

1,833,544

47,072

16,699,523

1,156,634

17,856,158(1,082,280)

16,773,877

Segment liabilities

7,108,475

6,693,817

1,764,802

184,748

15,751,844

339,500

16,091,345(311,148)

15,780,196

Depreciation of realestate for rent

3,664

2,676

—

—

6,340

—

6,340

(589)

5,750

Depreciation

Segment income (loss)

Others

6,248

6,944

952

0

14,146770

14,917517

15,434

Provision for (reversal of)policy reserve(83,950)(132,866)(233,119)—(449,935)

779(449,156)—(449,156)

Provision for (reversal of)reserve for policyholder
dividends

10,847

11,530(0)—22,378—22,378—22,378Interest, dividends andincome from real estate
for rent

160,817

159,359

6,058

304

326,539

47,764374,303(50,083)

324,219

1,011

27

3

1,082

2,125

1,593

3,718

(1,995)1,723

Equity in earnings(losses) of affiliates

—

—

—

(211,908)(211,908)—(211,908)(5,474)(217,383)

Extraordinary gains

1,271

—

—

—

1,271

154

1,425

—

1,425

Extraordinary losses

4,026

4,313

713

—

9,053

267

9,321

(445)

8,875

Impairment losses

87

—

—

—

87

—

87

—

87

Interest expenses

Provision for reservefor price fluctuations
Taxes
Investments in affiliatedcompanies
Increase in tangible fixed
assets and intangible
fixed assets

¥

3,295

3,423

631

—

7,350

—

7,350

—

7,350

7,710

18,926

2,399

(763)

28,273424

28,698(899)

27,799

453

365

—

110,732

111,551—

111,551—

111,551726 ¥

32,008(59) ¥

31,9487,810¥

22,291

¥

1,176

¥

2 ¥

31,281¥¥

Notes:
1. Ordinary revenues instead of net sales are presented here.
2. Adjustments are as follows:(1) The adjustment of ¥(1,110 million) to ordinary revenues is the transferred amount, which mainly consists of provision for policy and other reserves of ¥779 million of ordinary expenses which are in
ordinary revenue of the consolidated statement of operations as reversal for policy and other reserves, and reversal for employees’ retirement benefits of ¥338 million of ordinary revenue which are in
ordinary expenses of the consolidated statement of operations as provision for employees’ retirement benefits.
(2) The adjustment of ¥(51,745 million) to segment income (loss) is mainly due to the elimination of dividends from subsidiaries and affiliates.
(3) The adjustment of ¥(1,082,280 million) to segment assets is mainly due to the elimination of investments in stocks of subsidiaries and affiliates.
(4) The adjustment of ¥(311,148 million) to segment liabilities is mainly due to the elimination of intersegment receivables and payables.
3. Segment income (loss) is adjusted to align with the ordinary profit set forth in the consolidated statement of operations.

53

T&D Holdings Consolidated Financial Statements 2023

[Related information]
For the year ended March 31, 2022

1. Information by product and service
Sales to external customers¥ millions

Year ended March 31, 2022

Taiyo Life

Daido Life

T&D Financial Life

T&D United Capital(consolidated)

Others

Total

Income from insurance premiums¥598,144¥808,083¥367,118¥—¥8,605¥1,781,952

597,896805,611

338,150—

8,605

1,750,263

Individual insurance and individual
annuities

491,135

751,212

338,000——

1,580,348

Group insurance

26,903

19,984———46,887

Group annuities

78,81933,252

131——

112,203

Others

1,037

1,162

18

—

8,605

10,8232,472¥ 28,968¥—

Insurance premiums

Ceded reinsurance recoveries

¥

248

¥

¥

—

¥

31,688

Note: Income from insurance premiums instead of net sales is presented here.

2. Information by geographic area
(1) Net sales(2) Tangible fixed assets

Information by geographic area is omitted, as net sales (ordinary

Information by geographic area is omitted, as the amount ofrevenues) to external customers in Japan exceed 90% of net sales

tangible fixed assets in Japan exceeds 90% of the amount of(ordinary revenues) in the consolidated statement of operations.

tangible fixed assets in the consolidated balance sheet.

3. Information by major customer
Information by major customer is omitted, as there are no customers to whom sales exceed 10% of net sales (ordinary revenues) toexternal customers in the consolidated statement of operations.
For the year ended March 31, 2023

1. Information by product and service
Sales to external customers¥ millions

Year ended March 31, 2023

Taiyo Life

Daido Life

T&D Financial Life

T&D United Capital(consolidated)

Others

Total

Income from insurance premiums¥643,308¥810,311¥714,695¥—¥9,887¥2,178,203

551,268

808,414614,755—

9,887

1,984,325

393,722754,564

614,604——

1,762,892

Group insurance

26,827

20,235———47,063

Group annuities

129,723

32,413

133——

162,270

994

1,200

17

—

9,887

12,0991,897¥ 99,940¥—

Insurance premiums
Individual insurance and individual
annuities

OthersCeded reinsurance recoveries¥ 92,040¥¥—¥ 193,877

Note: Income from insurance premiums instead of net sales is presented here.

2. Information by geographic area
(1) Net sales(2) Tangible fixed assets

Information by geographic area is omitted, as net sales (ordinary

Information by geographic area is omitted, as the amount ofrevenues) to external customers in Japan exceed 90% of net sales

tangible fixed assets in Japan exceeds 90% of the amount of(ordinary revenues) in the consolidated statement of operations.

tangible fixed assets in the consolidated balance sheet.

3. Information by major customer
Information by major customer is omitted, as there are no customers to whom sales exceed 10% of net sales (ordinary revenues) toexternal customers in the consolidated statement of operations.

T&D Holdings Consolidated Financial Statements 2023

54

[Information on impairment losses on fixed assets by reportable segment]
For the years ended March 31, 2022 and 2023
Information on impairment losses on fixed assets by reportable segment is disclosed in “Note 29. Segment information.”[Information on amortization of goodwill and unamortized balance of goodwill by reportable segment]
For the years ended March 31, 2022 and 2023: Not applicable.

[Information on gains on negative goodwill by reportable segment]
For the years ended March 31, 2022 and 2023: Not applicable.

[Related party information]
1. Related party transactions(1) Transactions with the Company:
For the years ended March 31, 2022 and 2023: Not applicable.
(2) Transactions with the Company’s consolidated subsidiaries
a. The Company’s parent company and major shareholders (limited to companies, etc.), etc.:
For the years ended March 31, 2022 and 2023: Not applicable.
b. The Company’s non-consolidated subsidiaries and affiliated companies, etc.
As of March 31, 2022
Paid-in
Capital

Type

Name

Location

Affiliatedcompany

Fortitude Reinsurance
Company, Ltd.

$1
Bermuda(British territory) million

Type ofbusiness

Voting rights
ownership
Relation of(%)
related party

Indirectreinsurance ownership
25.0

Transaction¥ millions¥ millions

Amount oftransaction

Balance atthe end of
the yearEnter of
Payment ofreinsurance
reinsurance ¥507,696
contract withpremiums
Taiyo Life

Accounting
item

Reinsurance
payable¥563

Note: Reinsurance premiums agreed with the reinsurer based on the reinsurance contract were recorded at the time of reinsurance contract. Reinsurance premiums were determined by considering multiple
quotes.

As of March 31, 2023

Type

Name

¥ millions

Location

Paid-in
CapitalType ofbusiness

Voting rights
ownership
Relation of(%)
related party

Transaction

Amount oftransaction

Affiliatedcompany$1
Fortitude International Bermuda(British territory) million
Reinsurance Ltd.

Indirectreinsurance ownership
25.93

Enter of
Payment ofreinsurance
reinsurance ¥165,719
contract withpremiums
Daido Life

Affiliatedcompany$1
Fortitude International Bermuda(British territory) million
Reinsurance Ltd..

Indirectreinsurance ownership
25.93

Enter ofreinsurance
Payment ofcontract with reinsurance ¥280,330
T&D Financial premiumsLife¥ millions

Accounting
item

Balance atthe end of
the year

Reinsurance
payable¥528

Reinsurance
payable¥16,447

Note: R
 einsurance premiums agreed with the reinsurer based on the reinsurance contract were recorded at the time of reinsurance contract. Reinsurance premiums were determined by considering multiple
quotes.

c.	Companies, etc. having the same parent company as the Company and subsidiaries, etc. of the Company’s other affiliatedcompanies:
For the years ended March 31, 2022 and 2023: Not applicable.
d. The Company’s officer and major shareholders (limited to individuals), etc.:
For the years ended March 31, 2022 and 2023: Not applicable.

55

T&D Holdings Consolidated Financial Statements 2023

2. Notes on the parent company or any important affiliated company(1) Notes on the parent company:
For the years ended March 31, 2022 and 2023: Not applicable.
(2) Summarized financial information of important affiliated company
	For the consolidated fiscal year ended March 31, 2023 the important affiliated company was FGH Parent, L.P. and its summarized
consolidated financial information (main consolidated balance sheet items and consolidated statement of operations items) is asfollows.
The consolidated financial statements of the company have been prepared in accordance with U.S. GAAP.
¥ millions

2022

2023

¥5,596,122¥10,191,894

As of March 31,

Total assets
Total liabilities¥5,064,914¥10,496,293

Total net assets¥ 531,208¥

Total revenues¥ 136,710¥ (1,171,026)(304,398)

Total expenses¥ 168,108¥

Income before income taxes¥(31,397)¥ (1,274,218)

Profit¥(24,399)¥ (1,010,822)

Note 30

103,191

Per Share Information¥

Years ended March 31,

2022

2023

Net assets per share¥2,461.66¥1,803.27

Net income (loss) per share

24.39(237.31)

Net income per share (fully diluted)

24.36

—

Notes:
1. Net Income per share (fully diluted) for this fiscal year is not presented because net income per share was negative although there are potential shares.
2. A summary of the net assets per share, the net income (loss) per share and the net income per share (fully diluted) computations is as follows:(1) Net income (loss) per share and net income per share (fully diluted)¥ millions

Years ended March 31,

2022

2023

¥14,180¥(132,150)

Net income (loss) per share:
Profit (loss) attributable to owners of parent
Amount not attributable to common shareholders
Profit (loss) attributable to owners of parent attributable to common shareholders——¥14,180¥(132,150)

581,494,101

556,862,823

Shares

Weighted-average number of common stocks outstanding¥ millions

Years ended March 31,

2022

2023

¥—

¥—

Net income per share (fully diluted):
Adjusted profit attributable to owners of parent

SharesIncrease in common stock
Subscription rights to shares
Summary of potential shares that are not included in computation of net income per share (fully diluted) due to lackof dilution effect573,718—

573,718———

T&D Holdings Consolidated Financial Statements 2023

56

(2) Net assets per share¥ millions

2022

2023

¥1,389,506¥993,681

8,255

7,081

As of March 31,

Net assets
Deduction from net assets

659

570

7,596

6,511

Net assets available to common shareholders¥1,381,251¥986,599

The number of common stock outstanding

561,105,203

547,117,744

Subscription rights to shares
Non-controlling interests

Shares(3)	The Company’s shares remaining in the BIP (Board Incentive

deducted in calculation of net income (loss) per share andPlan) Trust, which are recorded as treasury shares in share-

net income per share (fully diluted) is 1,374,432, and theholders’ equity, are included in treasury shares to be deduct-

number of treasury shares to be deducted in calculation of

ed in the calculation of the average number of shares during

net assets per share is 1,338,700 for the consolidated fiscal

the period for calculation of net income (loss) per share andyear ended March 31, 2023. Also, for the consolidated fiscal

net income per share (fully diluted). Also, for the calculation

year ended March 31, 2022, the average number of treasuryof net assets per share, it is included in the number of trea-

shares to be deducted in calculation of net income per sharesury shares deducted from the total number of outstanding

and net income per share (fully diluted) was 1,173,823, andshares at the end of the fiscal year.

the number of treasury shares to be deducted in calculation

Accordingly, the average number of treasury shares to be

Note 31of net assets per share was 1,436,300.

Significant Subsequent Events[Acquisition of treasury shares]
The Company has resolved the acquisition of treasury shares at the Board of Director’s meeting held on May 15, 2023, based on theprovisions of Article 31 of the Company’s Articles of Incorporation complying with Article 459, Paragraph 1, Item 1 of the Companies
Act of Japan.
(1) Reasons for the acquisition of treasury shares
To increase shareholder returns and improve the capital efficiency.
(2) Details of the acquisition
a. Type of shares to be acquired: Shares of common stockb. Total number of shares to be acquired : Up to 40,000,000 sharesc. Total amount of acquisition: up to ¥40,000 million
d. Period of acquisition: From May 16, 2023, to May 15, 2024
e. Method of acquisition: Open-market repurchase by the discretionary trading method

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