Corporate Data

Financial Highlights
In fiscal 2020, the new policy sales results exceeded our initial forecast despite the spread of COVID-19,
increasing the value of new business from the previous fiscal year. The Group adjusted profit was higher thanthat in the previous fiscal year because of the strong performances of the three life insurance companies and theacquisition of equity stake in Fortitude.

Key Performance Indicators
Value of New BusinessGroup Adjusted Profit*¥143.4 billions

Fiscal 2020

¥77.9 billions

Fiscal 2020(¥ billions)(¥ billions)
200

100
162.1

150
119.5

129.4

143.4

140.3
115.8

91.7
83.3

80

77.9

78.5
64.9

60

100
40
50

20
0

0
2016

2017

Ultimate forward rate not applied

2018

2019

2016

2020
(Fiscal Year)

Ultimate forward rate applied

In fiscal 2020, the value of new business increased by ¥27.6 billion
from the previous fiscal year, to ¥143.4 billion, mainly due to therobust sales of Daido Life’s L-type Alpha. For the three life insurancecompanies, the value of new business was ¥50.4 billion for Taiyo Life
(compared with ¥49.3 billion in the previous fiscal year), ¥89.3 billion
for Daido Life (¥72.4 billion) and ¥3.6 billion (negative ¥5.9 billion) for
T&D Financial Life.

2017

2018

2019

2020
(Fiscal Year)* Group adjusted profit = net income ± valuation gains/losses caused by discrepancy ofaccounting treatment of assets and liabilities + additional internal reserves in excess of thelegal standard requirements
Adjusted net income was described until fiscal 2018.

In fiscal 2020, the Group adjusted profit increased by ¥12.9 billion
from the previous fiscal year, to ¥77.9 billion, mainly due to therecognition of the amount of negative good will arising from making
Fortitude an affiliated company and an increase in asset management gains and losses at Daido Life.

Adjusted ROE*

ROEV*

25.4 %

Fiscal 2020

5.8 %Fiscal 2020

(%)

(%)

30.0

10.0

25.4

8.0

21.5
20.0

7.9

7.4

6.8
5.7

6.0

5.8

4.0

10.0

6.7
2.0

0
2016

2017

0.3

0.9

2018

2019

0

* ROEV = Amount of EV increase (excluding increases or decreases incapital, etc.) ÷ Average EV balance (Group basis)	Base excluding valuation gains/losses, etc. related to Fortitude
Application of UFR from fiscal 2019.

2020(Fiscal Year)

Group MCEV excluding valuation gains/losses, etc. related to Fortitude
at the end of March 2021 increased by ¥702.8 billion from the previous
fiscal year-end, resulting in ROEV of 25.4%.

106

T&D Holdings INTEGRATED REPORT 2021

2016

2017

2018

2019

* Adjusted ROE = Group adjusted profit / Average net asset balance
Adjusted net income was described until fiscal 2018.

2020(Fiscal Year)In recent years, Adjusted ROE has tended to drop due to a decreasein the Group adjusted profit; however, in fiscal 2020, it increased
by 5.8% from the previous fiscal year because of an increase in theGroup adjusted profit.

Corporate Value

Return to Shareholders

Group MCEV

Total Return to Shareholders + Adjusted DOE*

¥3,290.9 billions

March 31, 2021

Total Returnto Shareholders

Fiscal 2020

Adjusted
DOE¥37.4 billions

3.0 %(¥ billions)(¥ billions)

(%)

4,000

80

4.0

3,290.9
3,000
2,406.7

2,290.5

2,370.6

2,605.160

2,588.1

2,000

40

1,000

20

2.6
37.5
17.0
20.5

0

Ultimate forward rate not applied

Mar. 31, 2019

Mar. 31, 2020 Mar. 31, 2021

2016

Ultimate forward rate applied

3.0

3.0

40.3

38.7

39.4

37.4

17.0

13.0

13.0

10.0

23.3

25.7

26.4

27.4

2018

Cash dividend

3.0

2.0

1.0
¥46.0

¥44.0

¥42.0

¥37.5
2017

Share buyback* Base excluding valuation gains/losses, etc. related to Fortitude

3.0

¥32.5

0
Mar. 31, 2017 Mar. 31, 2018

2.9

¥56.0
0

2019

2020

Dividend per share2021 (forecast)(Fiscal Year)
Adjusted DOE (right)* Adjusted DOE = Total dividend value/shareholders’ equity (excluding valuation gains/losses caused by discrepancy of accounting treatment of assets and liabilities of Fortitude)

As of March 31, 2021, the Group MCEV was ¥3,290.9 billion, which
represents an increase of ¥702.8 billion from the previous fiscal yearend. This was mainly due to an increase in long-term interest rates inJapan and rises in internal and external stock prices in addition to an
accumulation of value of new business.

In fiscal 2020, the Company paid a cash dividend of ¥46.0 per share,
which is an increase of ¥2 from the previous fiscal year, and represents
an increase in dividends for six consecutive terms. In addition, theCompany acquired the treasury shares of ¥10.0 billion and returned¥37.4 billion in total to its shareholders.

Consolidated Results of Operations
Group ordinary profit and net income for fiscal year 2020 is expected to decrease from the previous year. This is due to valuation losses caused bydiscrepancy of accounting treatment of assets and liabilities in Fortitude’s results of January to March 2021, mainly as a result of increased interest
rates in the U.S., and we are expecting an equity in losses of affiliates of approximately ¥57.0 billion.

Fiscal 2021 Full-year Earnings Forecasts* [Consolidated and Three Life Insurance Companies]
T&D Holdings

Ordinary revenues
Ordinary profit
Net income
Income from insurance
premiums
Core profit
Positive spread

Taiyo Life(¥billions)

Daido Life

T&D Financial Life

Fiscal 2020
(actual)Fiscal 2021
(forecasts)

Fiscal 2020
(actual)Fiscal 2021
(forecasts)

Fiscal 2020
(actual)Fiscal 2021
(forecasts)

Fiscal 2020
(actual)Fiscal 2021
(forecasts)

2,413.9
228.1
162.3

2,130.0
74.0
16.0

797.3
31.6
10.2

760.0
37.0
15.0

1,022.8
95.9
54.8

970.0
91.0
54.0

460.6
(2.9)
(2.7)

360.0
(1.0)
(1.0)

619.7

600.0

808.1

810.0

348.0

340.0

52.7
29.5

48.0
33.0

111.6
30.9

92.0
23.0

(3.2)
(2.4)

(5.0)
(3.0)

* Disclosed on May 14, 2021.

Financial Soundness
ESR

Rating* / Solvency Margin Ratio

225 %March 31, 2021

Rating Agencies
Rating andInvestment
Information,
Inc. (R&I)

Standard &Poor’s (S&P)

T&D Holdings

AA-

—

—

1,094.8%

Taiyo Life

AA-

AA-

A

852.8%

Daido Life

AA-

AA-

A

1,293.5%

T&D Financial
Life

AA-

AA-

—

826.8%

Rating is as ofJanuary 20, 2021

Solvency margin
ratio is as of March
31, 2021

225

250
200

175

189

198

168

150
159

Solvency margin
ratio

Japan Credit
Rating Agency,
Ltd. (JCR)

(%)

100
50
0
Mar. 31, 2017

Mar. 31, 2018

Ultimate forward rate not applied

Mar. 31, 2019

Mar. 31, 2020

Mar. 31, 2021

Ultimate forward rate applied

The economic solvency ratio, which represents capital adequacy
based on economic value, increased by 27 percentage points fromthe previous fiscal year-end to 225%, due to an increase in surplus,
net assets based on economic value, mainly caused by rises in internal and external stock prices.

* Long-term issuer rating for T&D Holdings and insurance claims paying ability ratings for thethree life insurance companies.

As of March 31, 2021, the solvency margin ratio was 1,094.8% on aconsolidated basis, 852.8% for Taiyo Life, 1,293.5% for Daido Life and826.8% for T&D Financial Life. They all indicate sufficient financial
soundness.
T&D Holdings INTEGRATED REPORT 2021

107

Corporate Data

Non-financial Highlights
Creating a workplace environment where employees reach their potential
The T&D Insurance Group has been promoting to nurture a
corporate culture where diverse human resources can feel job
satisfaction and reach their potential. Given that women represent the majority of the Group’s employees, the active participation of female employees is recognized as a crucial management

Employee satisfaction survey results (FY2020)* Five rated evaluation

T&D Holdings

Taiyo Life

Overall satisfaction level

Overall satisfaction level

3.84

3.61

Daido Life

T&D Financial Life

Overall satisfaction level

Overall satisfaction level

3.75

3.55

At the 3rd Platinum Career Award (held by Toyo Keizai Inc., supported by Ministryof Health, Labour and Welfare and Tokyo Stock Exchange), T&D Holdings,
representing the companies of the T&D Insurance Group, won the ExcellenceAward for the third consecutive year, from among 1,019 entrant companies. Taiyo
Life, Daido Life, and T&D Financial Life, the members of the T&D Insurance Group,
have each earned praise for their efforts to continue to create an environment thatencourages the personal growth of each of their employees.

Number of employees taking child care leave

17.9% / 454 (people)

(%)
18
14.9
12

355

17.0

16.2

15.8

432

405

387

Awards received for action on employee career formation
Award for excellence to T&D Holdings,
3rd Platinum Career Award

Ratio/number of female managers
April 1, 2021

priority. To this end, each Group company is introducing various
support systems to enhance work-life balance. We are working
to increase employment opportunities for people with disabilities by creating workplaces which are comfortable for them towork in.

17.9(people)(people)

600

500

454

450

444

2016

2017

465

484

415

400
400

200

6

415 (people)

Fiscal 2020

300
200
100

0

0
April 2017

April 2018

Ratio of female managers (left)April 2019

April 2020

Number of female managers (right)

Male

Ratio/number of employees with disabilities(people)(days)

5

500

18

3

381

367
328

2
2.22

366

384

2.56

2.52

2.60 200

1

12

12.4

13.2

16.1

14.0

6

100

0

0
Mar. 31, 2017

Mar. 31, 2018

Mar. 31, 2019 Mar. 31, 2020 Mar. 31, 2021

Ratio of employees with disabilities (left)

Number of employees with disabilities (right)* The above ratio of female managers, number of employees taking child care leave, ratio of
employees with disabilities and average number of days of paid leave taken are for the totalof three life insurance companies.

108

2020
(Fiscal Year)16.1 days
15.4

400
300

2.42

2019

FemaleFiscal 2020

(%)

4

2018

Average number of paid leave days taken

2.60% / 384 (people)

March 31, 2021

0

April 2021

T&D Holdings INTEGRATED REPORT 2021

0
2016

2017

2018

2019

2020
(Fiscal Year)

Initiatives on customer-oriented services
The T&D Insurance Group emphasizes clarity for the customer and strives to provide services customers can trust.
The T&D Insurance Group takes “customer-oriented” as a shared

Main awards received for initiatives oncustomer service
Taiyo Life
• Received the UCDA 2020 “Supreme Excellence” Award andthe “Another Voice” Award at the UCDA Award 2020, etc.
Daido Life
• Received the highest rank of “3 Star” for HDI-Japan’s“Quality Service” as the first Japanese company to get a fullscore
T&D Financial Life
• Obtained certification from the UCDA for its Shogai Premium
Japan 5 pamphlet

Group-wide value, and has established the “T&D Insurance Group
Basic Policy on Customer-oriented Business Operations.” EachGroup company is taking steps in accordance with such value.
Assessments of the policies of the three life insurance companies
on customer-oriented operations (FY2020)
Taiyo Life

Daido Life

T&D Financial Life

Overall satisfaction level

Overall satisfaction level

Satisfaction level at thecontract signing stage

91.8%

82.3%

98.1%

* Survey implementation methods differ for each company.

https://www.td-holdings.co.jp/information/business_operations.html(Japanese only)

Environmental initiatives
The T&D Insurance Group has enacted “T&D Insurance Group Environmental Policy.” Recognizing the environmental burden of resourceor energy consumption and waste emissions, we are working toward reducing environmental impact by conserving energy or resources,
recycling resources, and promoting green purchasing.

CO2 emissions volume(t)
100,000

95,10380,00060,00079,15074,36557,851

56,8232016

2017

40,000

Climate change is an issue that the world should work together and deal
with. The T&D Insurance Group has set to “help mitigate and adapt toclimate change” as a sustainability priority theme and is working toward
reducing environmental impact in its business activities.
As more than 90% of the CO2 emissions (Scope 1 + 2) derives from electricity use at the Group, we have set targets for reducing electricity use, and aretaking actions to cut our energy consumption and CO2 emissions.

20,0000

Scope1 (Direct emissions)

2018

2019

Scope2 (Indirect emissions)2020(Fiscal Year)
Scope3 (Other emissions)* Emissions have greatly increased since fiscal 2018, because of the addition of categories 1, 2,
and 7 to Scope3.

Electricity consumption

Office paper consumption

96,711MWh

Fiscal 2020
(MWh)
100,000

97,70596,486

98,92996,191100.7tFiscal 2020

96,711

(t)
150
120

75,000

123.0

127.0

130.4

129.4

100.7

90
50,00060
25,000

30
0

0
2016

2017

2018

2019

2020
(Fiscal Year)

2016

2017

2018

2019

2020
(Fiscal Year)T&D Holdings INTEGRATED REPORT 2021

109

Corporate Data

Selected Financial Data
T&D HOLDINGS¥ millions

Years ended March 31

2017

2018

2019

2020

2021

Statement of Operation Data:
Ordinary revenues:¥1,505,234¥1,483,719¥1,676,184¥1,753,508¥1,783,369

Investment income

402,709372,753

393,901

369,419453,706

Other ordinary income

67,83871,81370,07675,00173,963Equity in earnings of affiliates

1

72

—

—

102,914

Total ordinary revenues

1,975,784

1,928,359

2,140,162

2,197,928

2,413,953

Insurance claims and other payments

1,160,357

1,146,175

1,141,636

1,193,510

1,308,157

Provision for policy and other reserves

259,134

262,894

469,615

431,011484,929

Investment expenses

130,277

96,288112,285

164,819

110,235

Operating expenses

197,600

202,366

201,563

212,453

214,509

Other ordinary expenses

71,18664,15968,08670,424

67,9881,818,556

1,771,884

1,993,213

2,072,506

2,185,820

Ordinary profit

157,227

156,475

146,949

125,422

228,132

Net extraordinary gains (losses)(35,067)(16,485)(17,890)(6,055)(12,591)

Provision for reserve for policyholder dividends

25,37430,331

27,144

21,88324,429

Income before income taxes

96,786109,657

101,915

97,483

191,111

Current

33,316

34,10632,38331,76828,969Deferred(11,895)(2,044)(3,316)(1,425)(1,065)

21,421

32,061

29,06630,34327,903

Income from insurance premiums

Ordinary expenses:

Total ordinary expenses

Income taxes:

Total income taxes
Profit attributable to non-controlling interests
Profit attributable to owners of parent

177¥

75,187

19¥

77,57722¥

72,825¥36

890

67,103¥ 162,316¥ millions

2017

2018

2019

2020

2021

¥14,891,167¥15,262,398¥15,794,711¥16,520,137¥17,877,278

13,139,218

13,395,725

13,859,097

14,282,219

14,765,300

13,794,395

14,109,362

14,635,123

15,396,987

16,324,121

Total shareholders’ equity

794,554

833,779

863,933

889,817

1,013,819

Total accumulated other comprehensive income

298,302313,645

289,181

226,124

531,198¥ 1,096,772¥ 1,153,036¥ 1,159,588¥ 1,123,149¥ 1,553,157

2017

2018

2019

2020

2021

Policy amount in force¥64,612,813¥66,010,749¥69,264,639¥67,362,978¥65,638,037

New policy amount

7,441,437

7,273,000

9,985,762

4,711,892

4,220,821

Surrender and lapse amount

3,837,734

3,884,453

4,625,021

4,206,148

3,891,199

As of March 31

Balance Sheet Data:
Assets:Total assets
Liabilities:
Policy reserves
Total liabilities
Net assets:

Total net assets* The above figures are calculated based on the prevailing accounting standards of each fiscal year.
¥ millions

Years ended March 31

Policy Results *:* The total of individual insurance, individual annuities and Daido Life’s J-type product, T-type product, Kaigo Relief Alpha, etc. The new policy amounts include net increases from conversions.

Other Data:
Core profit¥ 159,985¥ 148,466¥ 149,638¥ 166,227¥ 161,039

Group MCEV *2,290,500

2,406,700

2,370,600

2,588,100

3,377,600

Consolidated solvency margin ratio

1,105.1%

1,061.8%

1,093.1%

1,107.0%

1,094.8%* Group MCEV is shown in terms of hundreds of millions of yen. Based on Ultimate Forward Rate since fiscal 2019.

110

T&D Holdings INTEGRATED REPORT 2021

TAIYO LIFE
¥ millions

2017

2018

2019

2020

2021

Income from insurance premiums¥654,379¥511,900¥715,120¥593,679¥619,721

Investment income

228,058

189,495

190,444

196,911

165,283

Other ordinary income

15,51737,31912,044

11,947

12,296

897,955

738,716

917,610

802,538

797,301

Insurance claims and other payments

535,387

522,746

521,457

542,912569,480

Provision for policy and other reserves

99,991

885

183,693

43,421

46,414

Investment expenses

83,10945,292

52,38676,173

46,919Operating expenses

77,18976,69876,73075,07776,509Other ordinary expenses

35,63530,301

29,14728,171

26,371

831,312675,925

863,413765,756

765,695
31,606

Years ended March 31

Statement of Operation Data:
Ordinary revenues:

Total ordinary revenues
Ordinary expenses:

Total ordinary expenses
Ordinary profit

66,642

62,79054,19636,782Net extraordinary gains (losses)(18,995)(4,254)(5,370)(1,594)(4,592)

Provision for reserve for policyholder dividends

11,73815,664

13,138

10,197

12,574

Income before income taxes

35,90942,87035,687

24,99014,440Current

11,120

10,238

10,798

10,391

5,956

Deferred(4,178)

2,151

(657)

(1,218)(1,800)

Income taxes:

6,941

12,39010,140

9,172

4,156

¥ 28,967¥ 30,480¥ 25,547¥ 15,817¥ 10,284

2017

2018

2019

2020

2021

¥7,188,371¥7,219,463¥7,411,864¥7,660,474¥8,235,372

6,410,781

6,389,235

6,569,075

6,608,629

6,654,572

6,807,381

6,810,776

6,996,551

7,269,351

7,708,881

Total shareholders’ equity

279,765

290,945304,203

303,647

302,568

Total valuation and translation adjustment

101,224

117,742

111,10987,476

223,923¥ 380,989¥ 408,687¥ 415,312¥ 391,123¥ 526,491

2017

2018

2019

2020

2021

Policy amount in force¥21,741,191¥21,154,486¥19,945,620¥18,023,246¥16,278,405

New policy amount

2,084,818

1,686,796

1,196,690

540,573

243,585

Surrender and lapse amount

1,255,824

1,236,078

1,240,097

1,149,490

941,331

5.71%

5.69%

5.86%

5.76%

5.22%

Total income taxes
Net income¥ millions

As of March 31

Balance Sheet Data:
Assets:Total assets
Liabilities:
Policy reserves
Total liabilities
Net assets:

Total net assets* The above figures are calculated based on the prevailing accounting standards of each fiscal year.
¥ millions

Years ended March 31

Policy Results *:Surrender and lapse rate

* The total of individual insurance and individual annuities. The new policy amounts include net increases from conversions.

Other Data:
Core profit¥ 53,464¥ 48,547¥ 51,859¥ 54,387¥

MCEV *

777,500

825,000

856,200

895,800

1,114,600

Solvency margin ratio

848.6%

835.1%

849.7%

805.5%

852.8%

8,902

8,942

8,440

8,071

8,473

Number of in-house sales representatives

52,703* MCEV is shown in terms of hundreds of millions of yen. Based on Ultimate Forward Rate since fiscal 2019.

T&D Holdings INTEGRATED REPORT 2021

111

Corporate Data

Selected Financial Data
DAIDO LIFE
¥ millions

2017

2018

2019

2020

2021

¥766,336
154,066
24,029944,431¥790,852
171,830
25,387
988,070¥ 828,003
191,065
26,492
1,045,561¥ 818,070
165,137
31,916
1,015,124¥ 808,161
185,876
28,796
1,022,834

484,881
204,770
48,244
103,099
20,739861,736
82,695(12,450)
13,63656,608496,329
232,739
46,233
103,602
19,767
898,672
89,397(11,698)
14,66863,031

510,573
259,032
61,342
103,883
21,458956,290
89,270(11,956)
14,00563,308522,146
214,775
61,569107,649
22,826928,967
86,157(3,703)
11,68770,766511,604
221,616
66,440106,644
20,622926,928
95,905(7,123)
11,85476,927

20,777(7,286)
13,491¥ 43,116

22,854(4,396)
18,458¥ 44,572

21,414(3,634)
17,77945,52821,646(1,330)20,31550,45025,029(2,965)22,06454,863

2017

2018

2019

2020

2021

¥6,298,188¥6,573,924¥6,843,179¥7,037,507¥7,554,346

5,501,639
5,654,175

5,729,754
5,913,402

5,986,450
6,180,746

6,195,363
6,393,649

6,415,546
6,701,219

448,016
195,996¥ 644,013

466,141
194,380¥ 660,521

489,267
173,165¥ 662,433

513,114130,743¥ 643,858

541,184
311,942¥ 853,127

2017

2018

2019

2020

2021

¥40,992,241
34,772,475
3,166,600
5,121,169
4,088,485
934,940
2,525,540
6.44%¥42,803,504
34,724,011
5,426,922
5,231,498
2,944,065
2,523,252
2,582,199
6.30%¥47,146,055
35,305,536
10,057,448
8,474,888
4,128,641
5,085,094
3,295,771
7.70%¥46,947,214
34,688,890
10,514,377
3,724,420
2,460,009
1,224,617
2,976,811
6.31%¥46,656,071
34,301,814
10,633,572
3,550,612
2,474,808
1,039,312
2,846,020
6.06%

Years ended March 31

Statement of Operation Data:
Ordinary revenues:
Income from insurance premiums
Investment income
Other ordinary income
Total ordinary revenues
Ordinary expenses:
Insurance claims and other payments
Provision for policy and other reserves
Investment expenses
Operating expenses
Other ordinary expenses
Total ordinary expenses
Ordinary profit
Net extraordinary gains (losses)
Provision for reserve for policyholder dividends
Income before income taxes
Income taxes:
Current
Deferred
Total income taxes
Net income

¥

¥

¥

¥ millions

As of March 31

Balance Sheet Data:
Assets:Total assets
Liabilities:
Policy reserves
Total liabilities
Net assets:
Total shareholders’ equity
Total valuation and translation adjustment
Total net assets* The above figures are calculated based on the prevailing accounting standards of each fiscal year.
¥ millions

Years ended March 31

Policy Results *:Policy amount in force
Individual term life insurance
J-type product, T-type product, Kaigo Relief and Kaigo Teiki Hoken
New policy amountIndividual term life insurance
J-type product, T-type product, Kaigo Relief and Kaigo Teiki Hoken
Surrender and lapse amount
Surrender and lapse rate

* The total of individual insurance, individual annuities, J-type product, T-type product, Kaigo Relief Alpha, etc. The new policy amounts include net increases from conversions.

Other Data:
Core profit
MCEV *
Solvency margin ratio
Number of in-house sales representatives
Number of agents¥ 105,677
1,417,400
1,252.6%
3,843
13,878* MCEV is shown in terms of hundreds of millions of yen. Based on Ultimate Forward Rate since fiscal 2019.

112

T&D Holdings INTEGRATED REPORT 2021

¥ 100,781
1,473,200
1,206.2%
3,714
13,992¥

99,245
1,417,700
1,271.9%
3,786
14,132¥ 116,903
1,626,000
1,335.3%
3,746
14,413¥ 111,604
2,058,800
1,293.5%
3,766
14,775

T&D FINANCIAL LIFE
¥ millions

Years ended March 31

2017

2018

2019

2020

2021

Statement of Operation Data:
Ordinary revenues:¥ 80,918¥176,474¥127,853¥335,910¥348,020

Investment income

23,041

12,982

17,221

11,924

106,851

Other ordinary income

51,874

7,036

5,683

6,660

5,789

155,834

196,492

150,758

354,495

460,661

Insurance claims and other payments

138,311

124,953

106,894

125,135

222,904

Provision for policy and other reserves

050,164

26,791

174,312

216,631

Investment expenses

213

4,888

1,941

30,117

127

Operating expenses

9,745

12,34911,453

19,373

20,216

Income from insurance premiums

Total ordinary revenues
Ordinary expenses:

1,363

1,592

1,612

3,309

3,727

149,634

193,948

148,694352,249

463,608

Ordinary Profit (loss)

6,199

2,543

2,064

2,246

(2,947)

Net extraordinary gains (losses)(3,612)

(461)

(552)

(756)

(868)

(1)

(1)

0

(0)

0

2,587

2,083

1,511

1,490

(3,816)

Current

874

199

(456)

(754)

(2,212)

Deferred

(427)

295

956

1,178

1,180

446

494

500

424

(1,031)

1,011¥ 1,065¥ (2,784)

Other ordinary expenses
Total ordinary expenses

Provision for (Reversal of) reserve for policyholder dividends
Income (loss) before income loss
Income taxes:

Total income taxes
Net income (loss)

¥

2,141

¥

1,588

¥

¥ millions

2017

2018

2019

2020

2021

¥1,313,747¥1,365,878¥1,438,819¥1,645,401¥1,850,918

1,224,914

1,274,376

1,300,935

1,475,204

1,691,538

1,242,846

1,292,955

1,361,498

1,564,466

1,782,638

70,027

71,616

72,62773,69370,909

874

1,306

4,693

7,240

As of March 31

Balance Sheet Data:
Assets:Total assets
Liabilities:
Policy reserves
Total liabilities
Net assets:
Total shareholders’ equity
Total valuation and translation adjustment
Total net assets¥

70,901¥

72,922¥

77,321¥80,934(2,628)¥68,280* The above figures are calculated based on the prevailing accounting standards of each fiscal year.
¥ millions

2017

2018

2019

2020

2021

¥1,879,380¥2,052,758¥2,172,963¥2,392,518¥2,703,559

1,280,606

1,506,435

1,676,228

1,936,200

2,283,802

New policy amount

235,449

354,705

314,183

446,898

426,624

Surrender and lapse amount

56,36866,17489,152

79,846

103,847

Surrender and lapse rate

3.12%

3.52%

4.34%

3.67%

4.34%

Years ended March 31

Policy Results *:Policy amount in force
Sales through independent insurance agents* The total of individual insurance and individual annuities.

Other Data:
Core profit (loss)

¥

(863)

¥ (1,466)¥ (5,063)¥ (3,268)

MCEV *

97,400102,600

98,50066,500108,100

1,295.6%

1,258.3%

1,101.7%

1,033.6%

826.8%

Solvency margin ratio843¥* MCEV is shown in terms of hundreds of millions of yen. Based on Ultimate Forward Rate since fiscal 2019.

T&D Holdings INTEGRATED REPORT 2021

113

Corporate Data

Consolidated Financial Statements
Consolidated Balance Sheet
As of March 31,¥ millions

US$ thousands

2020

2021

2021

Assets:861,770¥ 1,020,246

Call loans

35,66940,737367,961

Monetary claims purchased

135,313

181,191

1,636,628

Cash and deposits$

9,215,490

970,622

1,139,054

10,288,631

Securities (Notes 8, 13 and 14)

12,021,505

13,032,746

117,719,690

Loans (Notes 3 and 7)

1,697,539

1,734,678

15,668,668

380,633

375,516

3,391,896

Land (Note 2 (13))

214,604

212,109

1,915,900

Buildings

158,460

155,906

1,408,240

Lease assets

1,232

908

8,203

Construction in progress

1,737

2,244

20,275

Other tangible fixed assets

4,597

4,348

39,275

Monetary trusts

Tangible fixed assets (Note 4)30,78932,972297,825

Software29,44731,728286,594

Lease assets

172

82

741

1,169

1,161

10,489

666

685

6,187

Intangible fixed assets

Other intangible fixed assets
Due from agencies
Due from reinsurers

12,31021,024

189,906

Other assets (Note 14)

297,373

299,9932,709,721
16,722—

1,851

Deferred tax assets

78,022293

2,652

Reserve for possible loan losses(2,079)(3,713)(33,538)¥16,520,137¥17,877,278$161,478,444

Net defined benefit asset

Total assets

114¥

T&D Holdings INTEGRATED REPORT 2021

As of March 31,¥ millions

US$ thousands

2020

2021

2021

¥14,282,219¥14,765,300$133,369,163

67,76570,753

639,090

14,137,872

14,619,797

132,054,896

76,58174,748675,176

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

1,136

2,728

24,645Due to reinsurers

7,462

12,103

109,327

5,999

5,999

54,193

Bonds (Note 9)

187,005

157,000

1,418,119

Other liabilities (Notes 10 and 14)

Short-term debentures

615,062

1,041,612

9,408,472

Provision for bonuses to directors and audit & supervisory board members

281

294

2,660

Provision for share-based remuneration

633

898

8,115

49,15645,764413,370

59

67

612

Reserves under the special laws

243,014251,386

2,270,673

Reserve for price fluctuations

243,014251,386

2,270,673

56

36,460329,329

4,899

4,505

40,697

15,396,987

16,324,121

147,449,381

Net defined benefit liability
Provision for directors’ and audit & supervisory board members’ retirement benefits

Deferred tax liabilities
Deferred tax liabilities on land revaluation (Note 2 (13))
Total liabilities
Net assets:
Capital stock

207,111207,1111,870,760

Capital surplus

125,316

125,260

1,131,430

Retained earnings

603,589

740,329

6,687,106

Treasury shares(46,200)(58,882)(531,861)

Total shareholders’ equity

889,817

1,013,819

9,157,436

Valuation difference on available-for-sale securities

262,593574,871

5,192,585

Deferred gains (losses) on hedging instruments(2,381)(2,681)(24,218)

Land revaluation (Note 2 (13))(34,125)(35,018)(316,304)

37(5,972)(53,951)

226,124

531,198

4,798,110

876

689

6,226

6,332

7,449

67,288

1,123,149

1,553,157

14,029,062¥16,520,137¥17,877,278$161,478,444

Foreign currency translation adjustments
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets
See notes to consolidated financial statements.

T&D Holdings INTEGRATED REPORT 2021

115

Corporate Data

Consolidated Statement of Operation¥ millions

US$ thousands

Years ended March 31,

2020

2021

2021

Ordinary revenues¥2,197,928¥2,413,953$21,804,292

1,753,508

1,783,369

16,108,472

369,419453,706

4,098,148

299,763

289,927

2,618,800—

83,616755,279
386,172

Income from insurance premiums
Investment income
Interest, dividends and income from real estate for rent
Gains from monetary trusts, net

67,16242,753

Gains on redemption of securities

—

215

1,944

Foreign exchange gains, net—

25,522

230,531

2,492

4,283

38,690Gains on sales of securities

Other investment income
Gains on separate accounts, net
Other ordinary income

—

7,387

66,72975,00173,963

668,087—

102,914929,584

2,072,506

2,185,820

19,743,662

1,193,510

1,308,157

11,816,071

Insurance claims

363,062

401,726

3,628,635

Annuity payments

273,580

261,437

2,361,458

Insurance benefits

150,066

146,572

1,323,933

Surrender payments

339,448

365,062

3,297,467

Other payments

67,352

133,358

1,204,576

431,011484,929

4,380,181

—

2,987

26,987

430,993481,925

4,353,043

Equity in earnings of affiliates
Ordinary expenses
Insurance claims and other payments

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

18

16

150

164,819

110,235

995,713Interest expenses

1,027

1,553

14,034Losses from monetary trusts, net

21,386

—

—

257

95

859

Losses on sales of securities

27,50733,139299,336

Devaluation losses on securities

14,8805,635

50,905Losses from derivatives, net

58,172

44,311

400,247

Foreign Exchange losses, net

17,343——

Provision for reserve for possible loan losses

481

1,634

14,767

Write-off of loans

34

5

50

Interest portion of reserve for policyholder dividends
Investment expenses

Losses on investments in trading securities, net

Depreciation of real estate for rent

6,149

6,530

58,986

Other investment expenses

17,02017,328

156,525

557——

Operating expenses

212,453

214,509

1,937,579

Other ordinary expenses

70,424

67,988614,115

Losses on separate accounts, net

Equity in losses of affiliates
Ordinary profit

287

—

—

¥ 125,422¥ 228,132$ 2,060,630(continued)

116

T&D Holdings INTEGRATED REPORT 2021

¥ millions

Years ended March 31,

2020

Extraordinary gains¥ 4,038

US$ thousands

2021

¥

1,708

2021

$

15,430

3,392

1,187

10,723

State subsidy

646

490

4,426

Other extraordinary gains

—

31

280

10,093

14,300129,166

Gains on disposal of fixed assets

Extraordinary losses
Losses on disposal of fixed assets

672

827

7,477

Impairment losses (Note 16)

803

2,915

26,336

7,916

8,371

75,618—

1,695

15,315

Provision for reserve for price fluctuations
Losses from COVID-19

701

489

4,419

Provision for reserve for policyholder dividends

21,88324,429220,659

Income before income taxes

97,483

191,111

1,726,235

Income taxes (current)

31,76828,969261,671

Income taxes (deferred)(1,425)(1,065)(9,625)

Total income taxes

30,34327,903

252,045

Profit67,139163,2071,474,189

Other extraordinary losses

Profit attributable to non-controlling interests
Profit attributable to owners of parent

36

890

8,045

¥ 67,103¥162,316$1,466,144¥ millions

US$ thousands

Consolidated Statement of Comprehensive Income
Years ended March 31,

Profit

2020

2021

2021

¥ 67,139¥163,207$1,474,189(65,424)

309,551

2,796,054

606

(300)

(2,710)

Other comprehensive income:
Valuation difference on available-for-sale securities
Deferred gains (losses) on hedging instruments
Foreign currency translation adjustments

0

1

15

Share of other comprehensive income of associates accounted for using the equity method

19(3,037)(27,440)

Total other comprehensive income (Note 17)
Comprehensive income(64,798)

306,2142,765,918¥2,341¥469,422$4,240,108

2,301

468,283

4,229,823

39

1,138

10,285(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests
See notes to consolidated financial statements.

T&D Holdings INTEGRATED REPORT 2021

117

Corporate Data

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

Accumulated other comprehensive income
Valuationdifference
Deferredon available- gains (losses)
for-sale on hedging
securities instruments

Total
Foreign accumulatedothercurrencytranslation comprehenadjustments sive income

Noncontrollinginterests

Year ended March 31, 2020

Capital stock

CapitalsurplusRetainedearnings

Total
Treasury shareholders’equitysharesBalance at the beginning of the year

¥207,111¥156,740¥564,944¥(64,863) ¥863,933

Dividends(26,714)(26,714)

Profit attributable to owners of parent

67,103

67,103

67,103(13,014)(13,014)(13,014)

(60)

313

252

252

(31,363)

31,363——(1,743)(1,743)¥328,020

Land
revaluation¥(2,987) ¥(35,869)¥18¥289,181

Subscription
rights toshares¥1,081

Total net
assets¥5,391 ¥1,159,588

Changes in the period

Purchase of treasury shares
Disposal of treasury shares
Retirement of treasury shares(1,743)

Reversal of land revaluation
Net changes of items other thanshareholders’ equity
Total changes in the period
Balance at the end of the year—

(31,424)

38,645¥207,111¥125,316¥603,589(26,714)(65,426)

606

1,743

18

(63,057)

(204)

940

(62,322)

25,883(65,426)

606

1,743

18

(63,057)

(204)

940

(36,438)¥(46,200) ¥889,817¥262,593¥(2,381) ¥(34,125)¥37¥226,124¥ 876

18,663¥6,332 ¥1,123,149¥ millions
Shareholders’ equity

Accumulated other comprehensive income

Year ended March 31, 2021

Capital stock

CapitalsurplusRetainedearnings

Total
Treasury shareholders’equitysharesBalance at the beginning of the year

¥207,111¥125,316¥603,589¥(46,200) ¥889,817

Valuationdifference
Deferredon available- gains (losses)
for-sale on hedging
securities instruments

Land
revaluation¥262,593¥(34,125)¥(2,381)

Total
Foreign accumulatedothercurrencytranslation comprehenadjustments sive income¥37¥226,124

Subscription
rights toshares

Noncontrollinginterests

Total net
assets¥ 876¥6,332¥1,123,149

Changes in the period
Dividends(26,469)(26,469)(26,469)

Profit attributable to owners of parent

162,316

162,316

162,316(13,013)(13,013)(13,013)

331

275

275

892

892

Purchase of treasury shares(55)

Disposal of treasury shares

892

Reversal of land revaluation
Net changes of items other thanshareholders’ equity
Total changes in the period
Balance at the end of the year118

312,277

(300)

(892)

(6,010)305,074

(187)

1,117

306,004—(55)

136,739(12,682)

124,002312,277

(300)

(892)

(6,010)305,074

(187)

1,117

430,007¥207,111¥125,260¥740,329¥(58,882) ¥1,013,819¥574,871¥(2,681)¥(35,018)¥(5,972) ¥531,198¥ 689¥7,449¥1,553,157

T&D Holdings INTEGRATED REPORT 2021

US$ thousands
Shareholders’ equity

Accumulated other comprehensive income

Year ended March 31, 2021

Capital stock

Retainedearnings

Total
Treasury shareholders’equitysharesBalance at the beginning of the year

$1,870,760 $1,131,930 $5,451,988$(417,309) $8,037,370

Capitalsurplus

Valuationdifference
Deferredon available- gains (losses)
for-sale on hedging
securities instruments$2,371,905

Land
revaluation$(21,507) $(308,245)

Total
Foreign accumulatedothercurrencytranslation comprehenadjustments sive income$

338 $2,042,490

Subscription
rights toshares$ 7,916

Noncontrollinginterests

Total net
assets$57,196 $10,144,973

Changes in the period
Dividends(239,084)(239,084)(239,084)

Profit attributable to owners of parent

1,466,144

1,466,144

1,466,144(117,544)(117,544)(117,544)

2,992

2,492

2,492

8,058

8,058

8,058
2,820,679(2,710)(8,058)(54,290) 2,755,620(1,689)10,092

2,764,022(500) 1,235,118(114,552) 1,120,066

2,820,679(2,710)(8,058)(54,290) 2,755,620(1,689)10,092

3,884,089$1,870,760 $1,131,430 $6,687,106$(531,861) $9,157,436$5,192,585$(24,218) $(316,304)$(53,951) $4,798,110$ 6,226$67,288 $14,029,062

Purchase of treasury shares(500)

Disposal of treasury shares
Reversal of land revaluation
Net changes of items other thanshareholders’ equity—

Total changes in the period
Balance at the end of the year

See notes to consolidated financial statements.

T&D Holdings INTEGRATED REPORT 2021

119

Corporate Data

Consolidated Statement of Cash Flows
Years ended March 31,¥ millions

US$ thousands

2020

2021

2021

$ 1,726,235

Cash flows from operating activities:¥ 97,483¥ 191,111

Depreciation of real estate for rent

6,149

6,530

58,986

Depreciation

12,497

13,311

120,237

803

2,915

26,336

Income before income taxes

Impairment losses
Increase (decrease) in reserve for outstanding claims
Increase (decrease) in policy reserve
Interest portion of reserve for policyholder dividends
Provision for reserve for (reversal of) policyholder dividends
Increase (decrease) in reserve for possible loan losses
Increase (decrease) in provision for bonuses to directors and audit & supervisory board members
Increase (decrease) in provision for share-based remuneration
Decrease (increase) in net defined benefit asset
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for directors’ and audit & supervisory board members’
retirement benefits(1,788)2,987

26,987

430,993481,925

4,353,043

18

16

150

21,88324,429220,659

479

1,634

14,759

7

12

115

297

264

2,389

—

(1,851)(16,722)(1,882)(3,391)(30,637)

(6)

8

78

7,916

8,371

75,618Interest, dividends and income from real estate for rent

(299,763)(289,927)(2,618,800)

Losses (gains) on investment securities(23,959)(11,485)(103,745)

Increase (decrease) in reserve for price fluctuations

Interest expenses

1,027

1,553

14,034Foreign exchange losses (gains), net

15,066(29,976)(270,761)

Losses (gains) on disposal of tangible fixed assets(2,207)(282)(2,549)Equity in losses (earnings) of affiliates

287(102,914)(929,584)

Decrease (increase) in amount due from agencies

25

(18)

(165)

Decrease (increase) in amount due from reinsurers(10,029)(8,001)(72,277)

Decrease (increase) in other assets(excluding investment activities-related and financing activities-related)(9,323)(9,942)(89,804)

Increase (decrease) in amount due to agencies

727

1,592

14,380

Increase (decrease) in amount due to reinsurers

6,029

4,641

41,922

Increase (decrease) in other liabilities(excluding investment activities-related and financing activities-related)(2,048)

3,895

35,188Others, net

94,251(26,100)(235,752)

Subtotal

344,934

261,3112,360,322

Interest, dividends and income from real estate for rent received

308,195

295,406

2,668,295

Interest paid
Policyholder dividends
Others, net
Income taxes paid
Net cash provided by (used in) operating activities(927)(1,562)(14,109)(28,009)(26,273)(237,321)

2,108(1,568)(14,171)(35,205)(26,827)(242,322)¥ 591,097¥ 500,485$ 4,520,692(continued)

120

T&D Holdings INTEGRATED REPORT 2021

Years ended March 31,

2020¥ millions

US$ thousands

2021

2021

Cash flows from investing activities:
Net decrease (increase) in cash and deposits¥(5,300)¥(27,100)$(244,783)

Investments in monetary claims purchased(29,523)(22,933)

Proceeds from sales and redemption of monetary claims purchased

15,585

10,772

97,301(255,989)(137,439)(1,241,434)

Investments in monetary trusts(207,152)

34,80037,099335,107

Purchase of securities(1,984,103)(1,898,524)(17,148,631)

Proceeds from sales and redemption of securities

1,443,996

1,594,431

14,401,873

Investments in loans(367,123)(364,988)(3,296,795)

335,345

344,196

3,108,996

Proceeds from monetary trusts

Collection of loans
Others, net

271,496

211,470

1,910,128

Subtotal(540,816)(253,015)(2,285,390)

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

50,280247,470

2,235,302

Purchase of tangible fixed assets(23,836)(11,082)(100,103)

Proceeds from disposal of tangible fixed assets

4,732

2,732

24,684

Others, net

(214)

(98)

(891)

(560,134)(261,463)(2,361,700)

(0)

0

3

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

15,430

11,200101,165

Repayments of debt

(12,117)(13,236)(119,556)

Proceeds from issuance of bonds

70,000———(30,000)(270,978)

1,024

1,215

10,976

Repayments to non-controlling shareholders(79)(1,193)(10,780)

Payment of lease obligations

(685)

(669)

(6,051)

Purchase of treasury shares(13,014)(13,013)(117,544)

Redemption of bonds
Proceeds from share issuance to non-controlling shareholders

Proceeds from disposal of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Others, net
Net cash provided by (used in) financing activities

9

24

222

(26,629)(26,409)(238,546)

(44)

(43)

(388)

0

0

1

33,893(72,125)(651,477)

(973)

728

6,580

Net increase (decrease) in cash and cash equivalents

63,882

167,625

1,514,094

Cash and cash equivalents at the beginning of the year

854,057

917,940

8,291,392

917,940¥ 1,085,565$ 9,805,487

Effect of exchange rate changes on cash and cash equivalents

Cash and cash equivalents at the end of the year (Note 19)¥

See notes to consolidated financial statements.

T&D Holdings INTEGRATED REPORT 2021

121

Corporate Data

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(2) Principles of consolidation

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

a. Matters related to the scope of consolidation

tablished as a life insurance holding company, of which Taiyo Life(i) Number of consolidated subsidiaries: 19

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

		Names of main consolidated subsidiaries are stated in(“Daido Life”) and T&D Financial Life Insurance Company (“T&D“Group Companies” of the Integrated Report.

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

Taiyo Life Aging Society Institute was established bybecame wholly owned subsidiaries through share transfers. The

Taiyo Life in the consolidated fiscal year ended Marchbusiness combination was accounted for as a pooling of interests.

31, 2021. It is included in the scope of consolidated

The Company, including its domestic consolidated subsidiaries(the “T&D Insurance Group”), maintains its accounting records

subsidiaries.
(ii) Names of main non-consolidated subsidiaries, etc.: noneand prepares its financial statements in Japanese yen in accordance with the provisions of the Insurance Business Act of Japan(the “Insurance Business Act”) and in conformity with generally
accepted accounting principles and practices in Japan.
The accompanying consolidated financial statements are com-(i)	Number of non-consolidated subsidiaries accounted forunder the equity method: none(ii)	Number of affiliates accounted for under the equity

piled from the financial statements prepared by the Company as

method: 6

required by the Financial Instruments and Exchange Act of Japan.

The affiliates accounted for under the equity method

In preparing the consolidated financial statements, certain items

are Alternative Investment Capital Limited, Thuriya Ace

presented in the original financial statements have been reclas-

Technology Co., Ltd., Capital Taiyo Life Insurance, Ltd.,sified and summarized for readers outside Japan. These consol-

Fortitude Group Holdings, LLC, Fortitude Reinsurance

idated financial statements have been prepared on the basis ofCompany Ltd. and one other company.

generally accepted accounting principles and practices in Japan,

Since T&D United Capital Co., Ltd. acquired equity

which are different in certain respects from the application andinterest of Fortitude Group Holdings, LLC in the consoli-

disclosure requirements of International Financial Reporting

dated fiscal year ended March 31, 2021, Fortitude Group

Standards. In addition, the accompanying footnotes include in-

Holdings, LLC and Fortitude Reinsurance Company Ltd.,

formation that is not required under generally accepted account-a wholly owned subsidiary of Fortitude Group Holdings,

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

LLC, are included in affiliated companies over which theadditional information to the consolidated financial statements.

equity method is applied.

The translations of Japanese yen amounts into U.S. dollar(iii)	Names of non-consolidated subsidiaries and affiliates notamounts are included solely for the convenience of the readers

accounted for under the equity method, etc.: none

and have been made, as a matter of arithmetical computation(iv)	For the companies accounted for under the equity

only, at the rate of 1 U.S. dollar = 110.71 Japanese yen, which

method for which the closing date is different from thewas the approximate rate prevailing at the end of March, 2021.

consolidated closing date, the financial statements of

The translations should not be construed as representations thateach company’s fiscal year are used. In addition, for somesuch yen amounts have been, could have been or could in theof the companies accounted for under the equity meth-future be converted into U.S. dollars at that or any other rate.

od, financial statements, based on provisional settlement

Amounts of less than one million Japanese yen and one thousand U.S. dollars have been eliminated. As a result, Japanese yen
and U.S. dollar totals shown herein do not necessarily agree withthe sum of the individual amounts.

122b. Matters related to the application of the equity method

T&D Holdings INTEGRATED REPORT 2021

of accounts implemented on other record date, are used.

c.	Matters related to the fiscal year of consolidated subsidiaries, etc.

		– S ecurities other than the above are valued by the cost	The closing date of some consolidated subsidiaries ismethod based on the moving average method

December 31. In preparing the consolidated financial state-

Valuation differences on available-for-sale securities arements, financial statements as of that date are used andincluded in net assets.

necessary adjustments are made on consolidation to reflect

For some of the consolidated subsidiaries, translation

significant transactions that occurred between the closing

differences of bonds in foreign currency-denominateddate and the consolidated closing date.

available-for-sale securities are treated as follows: thetranslation differences from foreign currency fair value(3) Foreign currency translation

fluctuations are recorded as “net unrealized gains

Foreign currency assets and liabilities are translated into Japanese(losses)” and the remaining differences as “foreign

yen at the prevailing foreign exchange rates at the consolidated

exchange gains (losses).”balance sheet date.
Assets, liabilities, revenues and expenses of the Company’s

The overview of the risk management policies of policy-reserve-

affiliates located outside Japan are translated into Japanese yen

matching bonds

at the exchange rates in effect at the respective balance sheet[Taiyo Life]

date. Translation differences of foreign currencies are included

Managed by setting the investment policy of attempting toin net assets as foreign currency translation adjustments oreffectively reduce the risk of the whole portfolio by asset mix

non-controlling interests.

which is based on a balanced-type ALM aiming at exceeding
medium- and long-term liability cost.

(4) Accounting policy for measuring significant assets

Taking into account this investment policy and based on thea.	Evaluation criteria and evaluation method for securities (in-“Temporary Treatment of Accounting and Auditing Concerning

cluding cash and deposits/monetary claims purchased which

Policy-Reserve-Matching Bonds within the Insurance Industry”

are equivalent to securities and securities invested as trust(JICPA, Industry Audit Committee Report No. 21), the following

properties in monetary trusts)

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

(i)	Trading securities– All policies except for group insurance products segment,		– Fair value method (costs of securities sold are calculated based on the moving average method)other insurance product segment, non-participating currency
designation type single-premium individual annuity insurance,(ii) Held-to-maturity bonds

non-participating currency designation type special endowment

		insurance with living benefit, etc. in the general asset segment– Amortized cost method based on the moving averagemethod (straight-line method)– All non-participating currency specific-type single-premium(iii) Policy-reserve-matching bonds

individual annuity insurance policies and non-participating		

currency designation type special endowment insurance with

– Amortized cost method based on the moving averagemethod (straight-line method)(iv) Available-for-sale securities		– Securities with market value are valued by the fair value
method (costs of securities sold are calculated basedon the moving average method) based on the market
price, etc., of the last day of the consolidated fiscal year		– Securities deemed extremely difficult to determine
market value, which are public and corporate bonds

living benefit by currency in the general asset segment– All defined contribution corporate pension insurance policies
and all group pure endowment insurance in the group annuity
insurance asset segment– All insurance policies in the single-premium whole life/annuity
insurance asset segment– All insurance policies in the variable interest rate type singlepremium insurance asset segment(including foreign bonds), for which the difference
between the purchase price and face value is recog-[Daido Life]

nized as an interest rate adjustment are valued by theManaged by setting the investment policy fully considering theamortized cost method based on the moving averagecharacteristics and the risk tolerance of insurance products inmethod (straight-line method)order to ensure the fulfillment of future obligations.
Based on this investment policy, sub-segments in accordancewith the characteristics of the insurance products are set andbonds held in the attempt to control the duration within each

T&D Holdings INTEGRATED REPORT 2021

123

Corporate Data

sub-segment are classified as policy-reserve-matching bonds. The

All loans are subject to asset assessment by the related divisionsub-segments are set as follows:

based on the self-assessment criteria of the assets. The reserve– Individual insurance/individual annuity insurance in the gen-mentioned above is implemented based on the assessment

eral asset segment– Individual insurance/individual annuity insurance in the

results, after the asset auditing division independent from therelated division audits the assessment results.

non-participating insurance asset segment (subjects are the

For collateralized or guaranteed loans to borrowers subject

cash flows likely to occur in the period of over 5 years andto bankruptcy or substantial bankruptcy, the amount of loans

within 30 years in the future)exceeding the estimated value of collateral or guarantees,– Group annuity insurance in the group annuity insurance
asset segment

which were deemed uncollectible, was directly deducted fromthe amount of loans in the amounts of ¥365 million and ¥359
million [$3,246 thousand] for the years ended March 31, 2020

[T&D Financial Life]
Sub-segments are set in accordance with the characteristics of theand 2021, respectively.
Consolidated subsidiaries other than the Three Life Insurance

insurance products and the asset management policy is formulat-Companies allocate reserves for possible loan losses, in accor-

ed considering each sub-segment in order to manage interest rate

dance with criteria equivalent to the above, based on the results

risk appropriately. Further, the matching of the duration of policyof the assessment which is implemented in the scope deemed

reserves and policy-reserve-matching bonds within constant width

necessary considering the importance.

are verified regularly. The sub-segments are set as follows:– Individual insurance (the portion of the future payout at thecertain attained age and above of the subject insurance type)(6) Allocation method for reserve for price fluctuations
Reserves for price fluctuations of the Three Life Insurance– Accumulation rate type individual insurance

Companies are allocated in order to provide for losses due to– Accumulation rate type fixed annuity insurance

price fluctuations, which is pursuant to requirements under

Note that some insurance types and benefits are excluded.

Article 115 of the Insurance Business Act.

Evaluation criteria and evaluation method of derivative transactionsb.	(7) Policy reserve	Evaluation of derivative transactions is processed based on

To prepare for future performance of obligations under insurance

the fair value method.

policies for which contractual liability have commenced before
the fiscal year end, policy reserve is provided by the Three Life

(5) Reserve for possible loan losses

Insurance Companies at the amount calculated in accordance

The reserve for possible loan losses of the Three Life Insurancewith methodologies stipulated in the statement of calculation

Companies is allocated in accordance with the self-assessment

procedures for insurance premiums and policy reserve (Article

criteria and amortization/provision criteria of assets in order to

4, Paragraph 2, Item 4 of the Insurance Business Act) based onprovide for losses due to irrecoverable credits, as follows:

Article 116, Paragraph 1 of the Insurance Business Act.

For loans to borrowers who are in a state of legal/formal bankruptcy such as bankruptcy and civil rehabilitation, or in a state offollowing methodologies:

substantial bankruptcy, the remaining amount of the loan after– For policies subject to standard policy reserve, the method

directly deducting the amount stated below, less the estimatedestablished by the Commissioner of the Financial Services

amount collectible from collateral and guarantees is recorded.

Agency (Notification No. 48 of the Ministry of FinanceFor loans to borrowers who are not yet bankrupt but highly
likely to fall into bankruptcy, the amount deemed necessary fromthe overall assessment of the borrowers’ solvency is recorded
from the remaining amount of the loan after deducting the estimated amount collectible from collateral and guarantees.
For loans other than the above (performing loans and doubtful(1996))– For policies not subject to standard policy reserve, net level
premium method
Based on Article 121, Paragraph 1 of the Insurance BusinessAct and Article 80 of the Ordinance for Enforcement of the
Insurance Business Act, policy reserve is reviewed by an ap-

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

pointed actuary whether the policy reserve is properly provid-

from the fixed period in the past, multiplied by the loan amount,

ed as of the fiscal year end.

etc., is recorded.

124

Of policy reserve, premium reserve is calculated based on the

T&D Holdings INTEGRATED REPORT 2021

Of policy reserve, contingency reserve is provided at theamount calculated for covering risks which may accrue in the
future, so as to secure performance of the future obligations
under the insurance policies, based on Article 116 of the– Buildings, building and accessories, and structures: 2-50
years– Furniture and fixtures: 2-20 years

Insurance Business Act and Article 69, Paragraph 1, Item 3 of
the Ordinance for Enforcement of the Insurance Business Act.

b. Intangible fixed assets (except for lease assets)	Depreciation of software used in-house is calculated under(8)	Provision for bonuses to directors and audit &the straight-line method over a useful life of five years.

supervisory board members
To provide for payment of bonuses to directors and audit & su-c. Lease assets

pervisory board members, a provision for the directors’ and audit	For the depreciation of lease assets, lease assets with respect& supervisory board members’ bonuses is recorded based on theto ownership-transfer finance leases are calculated under the

expected amount to be paid in the year ended March 31, 2021.

same method for self-owned tangible fixed assets, and leaseassets with respect to non-ownership-transfer finance leases are(9) P rovision for share-based remuneration

calculated under the straight-line method over the lease period.

To provide for delivery of stock of the Company to directors
and audit & supervisory board members, the estimated amount(13) Land revaluationof share benefit obligations based on the internal rules of the

Taiyo Life revalued its land for operating purposes based on Act

Company and Three Life Insurance Companies is recorded inon Revaluation of Land (Act No. 34 of 1998). Regarding theprovision for share-based remuneration.

valuation differences between the previous and the revalued
amounts, the tax equivalent to this valuation differences has(10) P rovision for directors’ and audit & supervisoryboard members’ retirement benefits

been recorded in Liabilities section as “Deferred tax liabilities onland revaluation” and the amount after deducting the tax equiv-

To provide for directors’ and audit & supervisory board members’

alent from the valuation differences is recorded in Net Assets asretirement benefits, the Company sets up a provision for direc-“Land revaluation.”

tors’ and audit & supervisory board members’ retirement benefits– The method of revaluation provided for in Article 3, Paragraphbased on the internal rules of certain consolidated subsidiaries,
which is recorded in the amount recognized to have accrued asof March 31, 2021.

3 of the same law
The amount is rationally adjusted and calculated based on thelisted land price value as prescribed in Article 2, Item 1 of theOrder for Enforcement of the Act on Revaluation of Land (Act(11) A ccounting method for employees’ retirement benefits

No. 119 of 1998), the benchmark land price as prescribed in

For the calculation of retirement benefit obligations, the method

Article 2, Item 2 of the same, and an appraisal by the real estate

for attributing the expected retirement benefit amount to eachappraisers as prescribed in Article 2, Item 5 of the same, etc.

period up to the current fiscal year-end is based on the benefit– Date of revaluation: March 31, 2002

formula standard.
Actuarial gains and losses, past service costs and losses relating
to changes in accounting policies are expensed in the fiscal year
which they accrue.

(14) Method for significant hedge accounting
a. Hedge accounting method for Taiyo Life(i) Method for hedge accounting
Deferral hedge treatment and fair value hedge treatment(12) Depreciation method for significant depreciable assets

are used in hedge accounting. Special treatment is applieda. Tangible fixed assets (except for lease assets)

for interest rate swap transactions qualifying for special

	Depreciation of tangible fixed assets (except for lease assets)treatment, and allocation treatment is applied for currency

is mainly calculated under the declining-balance method.

swap transactions qualifying for allocation treatment.

Depreciation of buildings (except for building and acces-(ii) Hedging instrument and hedged item

sories, and structures) acquired on and after April 1, 1998,

		

and building and accessories, and structures acquired on

			 Hedged item:

and after April 1, 2016, is calculated under the straight-line		method. The main durable years are as follows:			 Hedged item:

1) Hedging instrument: interest rate swap
loans and bonds

2) Hedging instrument: currency swap
foreign currency-denominated loans

T&D Holdings INTEGRATED REPORT 2021

125

Corporate Data

		3) Hedging instrument: foreign exchange contract

			 Hedged item:		

foreign currency-denominated assets

4) Hedging instrument: option

			 Hedged item:	domestic and foreign stocks,				Based on internal rules, etc., concerning asset management, foreign exchange fluctuation risks of hedged items
are hedged within a certain range.

domestic and foreign-listed invest-(iv) Evaluation method for hedge effectivenessment trusts, domestic bonds

		Hedge effectiveness is evaluated by ratio analysis which

5) Hedging instrument: credit transaction

			 Hedged item:	domestic and foreign stocks, domestic and foreign-listed investment trusts		(iii) Hedging policy6) Hedging instrument: forward contract

mainly compares the fair value fluctuation of hedged
items and hedging instruments.
However, the evaluation is omitted if the material conditions of the hedged item and the hedging instrument
are the same and hedge effectiveness is high.

			 Hedged item:	domestic and foreign stocks, domestic and foreign-listed invest-(15) Accounting treatment for consumption taxes

ment trusts

The accounting treatment of consumption tax and local consumption tax is based on the tax exclusion method. However,(iii) Hedging policy
Based on internal rules, etc., in accordance with the risk

expenses of the nonlife insurance subsidiary such as loss ad-

management policy concerning asset management, cash

justment expenses, sales and administrative expenses, etc.

flow and price fluctuation risks related to hedged items

are treated based on the tax inclusion method. Furthermore,are hedged within a certain range.

non-deductible consumption tax on assets, etc., which is(iv) Evaluation method for hedge effectivenessprescribed in the tax law as deferred consumption tax, etc., is

Hedge effectiveness is evaluated semi-annually by meth-

recorded in other assets and amortized over a 5-year period on

ods such as ratio analysis which compares the cumulative

a straight-line basis, whereas tax other than deferred consump-

total of market fluctuations or cash flow fluctuations

tion tax is expensed in the fiscal year in which it accrues.

of hedged items and hedging instruments. However,
evaluation of hedge effectiveness is omitted for interest
rate swap transactions under special treatment, etc.,(16) Scope of cash and cash equivalents in the
consolidated statements of cash flows

currency swap transactions under allocation treatment,

Cash and cash equivalents in the consolidated statements ofcontracts in which both the hedged item and the hedg-

cash flows consist of cash, deposits withdrawable at any time

ing instrument are denominated in the same currency,

and readily convertible into cash, and short-term investments

option transactions in which hedged items are domestic/(term deposits, call loans, commercial paper, treasury discountforeign stocks and domestic/foreign-listed investmentbills, etc.) with insignificant risk of price fluctuations and with atrusts, credit transactions and forward contracts, andmaturity of 3 months or less at the time of acquisition.

option transactions in which domestic bonds are the(17) Application of consolidated taxation systemhedged item.

The consolidated tax payment system is applied to the Company
b. Hedge accounting method for Daido Life(i) Method for hedge accounting

and some of its consolidated subsidiaries, with the Company as
the consolidated taxpayer parent company.

		Fair value hedge treatment is adopted for the method forhedge accounting. Allocation treatment is adopted forforeign exchange contract transactions hedging foreign
currency fixed deposits qualifying for allocation treatment.

(18) A pplication of tax effect accounting for transition fromconsolidated taxation system to group tax sharing system
The Company and some of its consolidated subsidiaries have(ii) Hedging instrument and hedged item

calculated the amount of deferred tax assets and deferred tax

		Hedging instrument: foreign exchange contract

liabilities according to the tax acts before amended based on the		Hedged item:	foreign currency-denominatedtreatment of Paragraph 3 of “Practical Solution on the Treatment

available-for-sale securities andof Tax Effect Accounting for the Transition from the Consolidated

fixed deposits

Taxation System to the Group Tax Sharing System”(ASBJ Practical
Issues Task Force No. 39, March 31, 2020) instead of applying
the provision on Paragraph 44 of “Implementation Guidance

126

T&D Holdings INTEGRATED REPORT 2021

on Tax Effect Accounting” (ASBJ Guidance No. 28, February			If assumptions (base rates such as assumed inci-

16, 2018), regarding the transition to group tax sharing systemdence rate and assumed interest rate) stated in theestablished in “Act for Partial Amendment of the Income Tax

statement of calculation procedures for insurance

Act, etc.” (Act No. 8 of 2020), and items for which the non-con-premiums and policy reserve significantly deviate

solidated taxation system has been reviewed in line with thefrom the latest actual rates and it is found to likely

transition to the group tax sharing system.

to be insufficient to cover the performance of the
future obligations, additional policy reserve must be(19) Income from insurance premiums

set aside in accordance with Article 69, Paragraph 5

In general, income from insurance premiums (excluding cededof the Ordinance for Enforcement of the Insurance

reinsurance recoveries) is recorded by the Three Life Insurance

Business Act.

Companies at the amount of premiums received, for insurance
policies for which the premiums are received and the contractualb. Accounting treatment for employees’ retirement benefits(i) Amounts recognized on the consolidated financial statements

liabilities have commenced.
Of premiums received, the amount corresponding to the un-¥ millions

expired period as of the fiscal year end is accounted for as policy
reserve in accordance with Article 116 of the Insurance BusinessAct and Article 69, Paragraph 1, Item 2 of the Ordinance for

US$ thousands

2021

2021

Net defined benefit asset¥ 1,851$ 16,722

Net defined benefit liability¥45,764$413,370

As of March 31,(ii)	Information on significant accounting estimates in con-

Enforcement of the Insurance Business Act.

nection with items identified(20) I nsurance claims and other payments/

		1) Calculation method

Reserve for outstanding claims

			Retirement benefit obligations and retirement benefit

Insurance claims and other payments (excluding reinsurance

expense are calculated based on actuarial assump-premiums) are recognized by the Three Life Insurance Companies

tions used for calculation of future retirement benefit

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

obligations, expected long-term rate of return on

conditions, for which the insured events provided in the policy

plan assets and others.

conditions have occurred.

The method for attributing the expected retirement

Based on Article 117 of the Insurance Business Act and Article

benefit amount is stated in “Note 2 (11) Accounting

72 of the Ordinance for Enforcement of the Insurance Business
Act, reserve for outstanding claims is provided for unpaid insurance proceeds over the contracts for which payment obligations
exist as of the fiscal year end or for which insured events havealready incurred but not reported.

method for employees’ retirement benefits”
		2)	Major assumptions and their effects on the consolidated financial statements of the following fiscal year, etc.

			Matters related to actuarial basis are stated in “Note
26 Employees’ Retirement Benefits” If any of the
major assumptions such as discount rate and expect-(21) Significant Accounting Estimates

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

a. Policy reserve

there may be a significant impact on the net defined

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

As of March 31,

2021

2021

Policy reserve¥14,619,797$132,054,896

Provision for policy reserve¥$

481,925

benefit asset or liability.

US$ thousands

4,353,043

c. Impairment losses on fixed assets(i) Amounts recognized on the consolidated financial statements¥ millions(ii)	Information on significant accounting estimates in connection with items identified
		1) Calculation method			It is stated in “Note 2 (7) Policy reserve.”		2)	Major assumptions and their effects on the consolidated financial statements of the following fiscal
year, etc.

US$ thousands

As of March 31,

2021

2021

Impairment loss

¥2,915$26,336(ii)	Information on significant accounting estimates in connection with items identified
		1) Calculation method			For the Three Life Insurance Companies, consolidated
subsidiaries, real estates, etc. owned for insurance
operations, etc., are grouped as a single asset group

T&D Holdings INTEGRATED REPORT 2021

127

Corporate Data

(operating assets) and other assets such as rentalb. Scheduled date of adoption

properties and unused real estates are grouped sepa-	Scheduled to be applied from the beginning of the fiscal year

rately by each property (investment assets).
For the Company and other consolidated subsidiaries, real estates, etc. owned for their own operations
are grouped as a single asset group (operating assets).

starting April 1, 2021.
c. Effect of the application of the accounting standards
	For the fiscal year applied, the effect of the application isimmaterial.

For an asset group with an indication of impairment, impairment loss is recognized, when the total[Accounting Standard for Fair Value Measurement, etc.]

amount of undiscounted future cash flows is less

– “Accounting Standard for Fair Value Measurement” (ASBJ

than the carrying amount of the asset group, at theamount calculated by deducting the recoverable
amount (the larger of discounted future cash flows
and net realizable value) from the carrying amount.
		2)	Major assumptions and their effects on the consolidated financial statements of the following fiscal
year, etc.
For calculation of undiscounted future cash flows forStatement No. 30, issued on July 4, 2019)– “Implementation Guidance on Accounting Standard for Fair
Value Measurement” (ASBJ Guidance No. 31, issued on July 4,
2019)– “Accounting Standard for Measurement of Inventories” (ASBJ
Statement No. 9, issued on July 4, 2019)– “Accounting Standard for Financial Instruments” (ASBJ
Statement No. 10, issued on July 4, 2019)

the purpose of determining impairment recognition,– “Implementation Guidance on Disclosures about Fair Valuethe amounts of future net income from insuranceof Financial Instruments” (ASBJ Guidance No. 19, issued on

operations on the Mid-Term Management Plan, etc.

March 31, 2020)

are used for operating assets, and the track recordand future outlook of net income by each property area. Summary

used for investment assets.

	In order to improve the comparability of domestic and in-

If the future net income from insurance operations

ternational accounting standard, “Accounting Standard forand the future outlook of net income, which are theFair Value Measurement” and “Implementation Guidance on

major assumptions, deteriorate and the undiscounted

Accounting Standard for Fair Value Measurement” (“account-

future cash flows change, there may be a possibility

ing standard for fair value measurement, etc.”) were devel-

to recognize impairment loss.

oped, and the guidance for fair value measurement, etc. wereenacted. Accounting standard for fair value measurement, etc.

(22) Unadopted accounting standards, etc.

are adopted to the fair values of following items.

[Accounting Standard for Revenue Recognition, etc.]– F inancial instruments defined in “Accounting Standard for– “Accounting Standard for Revenue Recognition” (ASBJ
Statement No. 29, issued on March 31, 2020)– “Implementation Guidance on Accounting Standard for
Revenue Recognition” (ASBJ Guidance No. 30, issued on
March 26, 2021)

Financial Instruments”– Inventories held for trading purpose defined in“Accounting Standard for Measurement of Inventories”
In addition, “Implementation Guidance on Disclosuresabout Fair Value of Financial Instruments” was revised, andnotes such as breakdown per levels of fair value of finan-a. Summary	A comprehensive accounting standard for revenue recognition.
Revenue will be recognized applying the following five steps.
Step 1: Identify the contract with a customer.

b. Scheduled date of adoption
	Scheduled to be applied from the beginning of the fiscal
year starting April 1, 2021.

Step 2: Identify the performance obligations of the contract.

c. Effect of the application of the accounting standards

Step 3: Calculate the transaction price.

	For the fiscal year applied, the effect of the application is

Step 4: Allocate the transaction price to the performanceobligations of the contract.
Step 5: Recognize the revenue at the time when the performance obligations are fulfilled or as the performanceobligations is being fulfilled.

128

cial instruments were enacted.

T&D Holdings INTEGRATED REPORT 2021

immaterial.

[Changes in presentation]

The accounting treatment of the System is based on “Practical[Application of Accounting Standard for Disclosure of

Solution on Transactions of Delivering the Company’s Own Stock

Accounting Estimates]

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

Applying “Accounting Standard for Disclosure of Accounting

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

Estimates” (ASBJ Statement No. 31, issued on March 31, 2020)
from the end of the consolidated fiscal year ended March 31,

a. Summary

2021, the Company disclosed notes on the consolidated financial

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

statements regarding the significant accounting estimates.

Insurance Companies, the points are granted to Eligible

In accordance with the transitional treatment prescribed in

Directors, etc. and they are delivered and provided throughthe proviso of paragraph 11 of the said accounting standard,a trust of the Company’s shares equivalent to accumulatedcomparative information for the consolidated fiscal year ended

points upon retirement and a monetary equivalent of the

March 31, 2020 is not disclosed.

substitution value of the Company’s shares. The Company’s
shares to be delivered to Eligible Directors, etc. will be ac-[Additional information]quired in advance by money in trust by the Company.

[Transactions of Delivering the Company’s Own Stock tob. The Company’s shares remaining in BIP Trust

Employees etc. through Trusts]

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

The Company has introduced a trust type stock compensation

value in the trust is recorded as the treasury share in net asset

system (the “System”), the Board Incentive Plan (BIP) Trust,(excluding ancillary expenses). The carrying value of treasury

which uses a trust to deliver the Company’s shares, etc. toshare in the Trust was ¥1,275 million, and the number of

directors who are not audit and supervisory board members oftreasury share in the Trust was 798,400 shares for the fiscal

the Company (excluding those who are part-time directors such

year ended March 31, 2020. Also, as of the end of the fiscal

as outside directors and non-residents in Japan) and executive

year ended March 31, 2021, the carrying value of treasury

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

share in the Trust is ¥1,186 million [$10,717 thousand], andin Japan, and together with directors who are not audit andthe number of treasury share in the Trust is 742,900 shares.

supervisory board members, referred to as “Directors, etc.”)
and directors of the Three Life Insurance Companies (excluding[Accounting Estimates of Effect of COVID-19]

those who are part-time directors such as outside directors and

The Company and Three Life Insurance Companies implement

non-residents in Japan) and executive officers of the Three Lifeaccounting estimates of impairment accounting of fixed assets,

Insurance Companies (excluding those who are non-residents in

etc. based on the information available at the time of preparing

Japan, and together with Directors, etc., referred to as “Eligible

the financial statements on the assumption that the current situ-

Directors, etc.”), with an aim to enhance the motivation ofation continues. The impact of COVID-19 is small in terms of the

Directors to contribute to improving business performance andamounts and accounting estimates from this fiscal year onwards.

enhancing corporate value over the medium- to long-term.

T&D Holdings INTEGRATED REPORT 2021

129

Corporate Data

Note 3Loans

The amounts of delinquent loans of the Company and its consolidated subsidiaries are as follows:¥ millions

As of March 31,

Loans to bankrupt companies
Past due loans
Loans overdue for three months or more
Restructured loans
Total

Loans to bankrupt companies are loans to borrowers that are

US$ thousands

2020

2021

¥ 118

¥ 104

$

2021

449

1,713

15,478

1,747

1,466

13,242

21

21

190

¥2,336¥3,305$29,857

945

Loans overdue for three months or more are loans other thansubject to bankruptcy, corporate reorganization or rehabilitation

those categorized as loans to bankrupt companies or past due

or other similar proceedings on which the Company and its

loans for which principal and/or interest are overdue for three

consolidated subsidiaries have stopped accruing interest aftermonths or more beginning the day after the agreed due date.

determining that collection or repayment of principal or interest

Restructured loans are loans other than those categorized as

is unlikely due to a significant delay in payment of principal orloans to bankrupt companies, past due loans or loans overdue

interest or for some other reason.

for three months or more for which agreements have been madePast due loans are loans, other than those categorized as

between the relevant parties to provide a concessionary interest

loans to bankrupt companies and loans for which due dates for

rate, rescheduling of due dates for interest and/or principal pay-interest payments have been rescheduled for purposes of restruc-ments, waiver of claims and/or other terms in favor of the bor-turing or supporting the borrower, on which the Company andrower for purposes of restructuring or supporting the borrower.

its consolidated subsidiaries have stopped accruing interest basedon self-assessment.

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

US$ thousands

As of March 31,

2020

2021

2021

Loans to bankrupt companies

¥ 72

¥72

$657

Past due loans

120

83

756

¥ millions

US$ thousands

Note 4

Accumulated Depreciation of Tangible Fixed Assets

The amounts of accumulated depreciation of tangible fixed assets are as follows:
Years ended March 31,

Accumulated depreciation of tangible fixed assets

Note 5

2020

2021

2021

¥241,486¥248,205$2,241,939

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 6

US$ thousands

2020

2021

2021

¥27,022¥30,471$275,233¥ millions

US$ thousands

Reserve for Policyholder Dividends

The changes in reserve for policyholder dividends included in policy reserves are as follows:
2020

2021

2021

Balance at the beginning of the year

¥ 82,663¥ 76,581$ 691,733

Policyholder dividends

Years ended March 31,(28,009)(26,273)(237,321)

Increase in interest

18

16

150

Increase due to other reasons

25

—

—

Decrease due to other reasons

—

5

45

Provision for reserve for policyholder dividends
Balance at the end of the year

130

T&D Holdings INTEGRATED REPORT 2021

21,88324,429220,659¥ 76,581¥ 74,748$ 675,176

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

US$ thousands

2020

2021

2021

¥52,144¥47,304$427,281

Balance of loans outstanding

13,737

20,509185,256

Balance¥38,407¥26,794$242,024¥ millions

US$ thousands

Note 8

Lending Securities for Loan Agreements

The lending securities for loan agreements are as follows:
Years ended March 31,

Lending securities for loan agreement

Note 9

2020

2021

2021

¥1,541,284¥1,856,034$16,764,833

Bonds

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

US$ thousands

Years ended March 31,

2020

2021

2021

Subordinated bonds¥157,000¥157,000$1,418,119

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

Note 11

US$ thousands

2020

2021

2021

¥13,000¥13,000$117,423

Future Contributions to the Life Insurance Policyholders Protection Corporation of JapanThe amounts of the Three Life Insurance Companies’ future contributions to the Life Insurance Policyholders Protection Corporation ofJapan, which are estimated in accordance with Article 259 of the Insurance Business Act, are as follows. The contributions are recordedon the consolidated statement of operation as an operating expense when contributed.
¥ millions

Years ended March 31,

Contributions to the Life Insurance Policyholders Protection Corporation

Note 12

US$ thousands

2020

2021

2021

¥20,771¥20,279$183,173

Organizational Change Surplus

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

US$ thousands

2020

2021

2021

Taiyo Life Insurance Company¥63,158¥63,158$570,481

Daido Life Insurance Company

10,836

10,836

97,877¥ millions

US$ thousands

Years ended March 31,

Note 13

Stocks of Affiliated Companies

Stocks of affiliated companies included in securities are as follows:
Years ended March 31,

Stocks of affiliated companies

2020

2021

2021

¥1,087¥179,675$1,622,942

T&D Holdings INTEGRATED REPORT 2021

131

Corporate Data

Note 14

Assets Pledged as Collateral and Secured Debts

Assets pledged as collateral are as follows:¥ millions

Securities (Japanese government bonds)
Securities (Foreign securities)

2021

2021

¥ 788,254¥1,203,296$10,868,904

783,493765,700

6,916,271

1,516

18,275

165,070¥1,573,263¥1,987,271$17,950,246

Cash collateral pledged for financial instruments
Balance

US$ thousands

2020

Years ended March 31,

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

Cash collateral received for bond-lending transactions

Note 15

2021

2021

¥389,338¥709,666$6,410,136

Fair Value of Financial Assets Received as Collateral with Free Right of Disposal¥ millions

Financial Assets Received as Collateral with Free Right of Disposal

US$ thousands

2020

2021

2021

¥130,643¥77,815$702,877

Years ended March 31,

Note 16

US$ thousands

2020

Years ended March 31,

Impairment Losses on Fixed Assets

The items regarding impairment losses on fixed assets are as follows:(1) Grouping of assets(2)	Circumstances which led to the recognition of

For the Three Life Insurance Companies, real estates, etc. owned

impairment losses

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

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

the recoverable amount and the reduced amount was recorded

estates are grouped separately by each property.

in extraordinary losses as impairment losses because of a signifi-

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

their own operations are grouped as a single asset group.

(3) Impairment losses recognized by asset group and the breakdown of the amounts of impairment losses by fixed asset type
Year ended March 31, 2020¥ millions

Asset

LocationLand

Buildings, etc.

Total

Rental properties, etc.

Niigata City, Niigata Prefecture, etc. (15 assets)

¥449

¥353

¥803

Asset

LocationLand

Buildings, etc.

Total

Total

Rental properties, etc.

Edogawa-ku , Tokyo, etc. (12 assets)¥2,331¥584¥2,915$26,336

Year ended March 31, 2021

132

¥ millions

T&D Holdings INTEGRATED REPORT 2021

US$ thousands

(4)	Method for calculating the recoverable amountis calculated by subtracting the estimated costs of disposal from

The recoverable amount is based on net realizable value forthe appraisal value calculated in accordance with the real estate

rental properties, etc.

appraisal standard.

In principle, the net realizable value for rental properties, etc.

Note 17

Consolidated Statement of Comprehensive Income

Reclassification adjustments and tax effects regarding other comprehensive income are as follows:
Years ended March 31,¥ millions

US$ thousands

2020

2021

2021

$ 3,824,731

Valuation difference on available-for-sale securities:¥(88,206)¥ 423,436

Reclassification adjustments

685

1,058

9,562

Amount before tax effect(87,521)424,494

3,834,294

Tax effect

22,096(114,943)(1,038,239)

Valuation difference on available-for-sale securities(65,424)

309,551

2,796,054

Amount occurred during the year

653

(653)

(5,901)

Reclassification adjustments

212

212

1,922

Amount before tax effect

866

(440)

(3,979)Tax effect

(259)

140

1,268

Deferred gains (losses) on hedging instruments

606

(300)

(2,710)0

1

15

Amount occurred during the year19

(3,037)(27,434)

Total other comprehensive income¥(64,798)¥ 306,214$ 2,765,918

Amount occurred during the year

Deferred gains (losses) on hedging instruments:

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

Note 18

Consolidated Statement of Changes in Net Assets

For the year ended March 31, 2020

(1) Type and number of issued shares and treasury sharesYear ended March 31, 2020

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

655,000,000—

22,000,000

633,000,000

43,041,691

11,481,980

22,212,230

32,311,441

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 November 14, 2019: 22,000,000 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 15, 2019: 11,469,900 shares– Purchase of odd-lot shares: 12,080 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 November 14, 2019: 22,000,000 shares– Exercise of stock option : 182,200 shares– Purchase request of odd-lot shares: 530 shares– Decrease by the BIP Trust: 29,500 shares
4.	The number of treasury shares of common stock includes 798,400 shares of the Company’s treasury share owned by the BIP Trust as of the end of the fiscal year. (827,900 share as of beginning of the
fiscal year.)(2) Subscription rights to shares
Category

Breakdown of subscription rights to shares

The Company

Share subscription rights as stock options

Balance at the end of the fiscal year
¥ millions¥876

T&D Holdings INTEGRATED REPORT 2021

133

Corporate Data

(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 27, 2019

Ordinary General Meeting of
Shareholders held on June 26, 2019

Common stock¥13,481¥22.0

March 31, 2019

Board of Directors’ meeting held on
November 14, 2019

Common stock¥13,232¥22.0

September 30, 2019 December 6, 2019

Notes:
1.	The total amount of shareholder dividends, which based on the resolution made at the Ordinary General Meeting of Shareholders held on June 26, 2019, includes ¥18 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, 2019, includes ¥17 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, 2020, while their effective date is in the fiscal year
ending March 31, 2021
Date of resolution

Amount ofshareholder dividends

Type of shares

Shareholder
dividends per share

Underlying assets¥ millions

Ordinary General Meeting of
Shareholders held on June 25, 2020

Common stock¥13,232

Record date

Effective date

March 31, 2020

June 26, 2020¥

Retained earnings¥22.0

Notes:
1. It is planned to submit the bill to the Ordinary General Meeting of Shareholders scheduled to be held on June 25, 2020.
2. The total amount of shareholder dividends includes ¥17 million of the dividends for the Company’s treasury share owned by the BIP Trust.

For the year ended March 31, 2021

(1) Type and number of issued shares and treasury sharesYear ended March 31, 2021

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——

633,000,000

32,311,441

10,552,455

225,790

42,638,106

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 13, 2020: 10,540,600 shares– Purchase of odd-lot shares: 11,855 shares
2. Treasury shares of common stock decreased due to the following reasons:– Exercise of stock option : 170,200 shares– Purchase request of odd-lot shares: 90 shares– Decrease by the BIP Trust: 55,500 shares
3.	The number of treasury shares of common stock includes 742,900 shares of the Company’s treasury share owned by the BIP Trust as of the end of the fiscal year. (798,400 share as of the beginning of
the fiscal year.)(2) Subscription rights to shares
Category

The Company

Breakdown of subscription rights to shares

Balance at the end of the fiscal year

Share subscription rights as stock options¥ millions

US$ thousands¥689$6,226(3) Shareholder dividends
a. Shareholder dividends paid
Date of resolution

Type of shares

Amount of shareholder dividends

Shareholder dividends per share¥ millions

US$ thousands¥

US$

Record date

Effective dateJune 26, 2020

Ordinary General Meeting of
Shareholders held on June 25, 2020

Common stock¥13,232$119,525

¥22.0

$0.19

March 31, 2020

Board of Directors’ meeting held on
November 13, 2020

Common stock¥13,236$119,558

¥22.0

$0.19

September 30, 2020 December 4, 2020

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, 2020, 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 13, 2020, includes ¥16 million of the dividends for the Company’streasury share owned by the BIP Trust.

134

T&D Holdings INTEGRATED REPORT 2021

b.	Shareholder dividends whose record date is in the fiscal year ended March 31, 2021, while their effective date is in the fiscal year
ending March 31, 2022
Date of resolution

Amount ofshareholder dividends

Type of shares

Ordinary General Meeting of
Shareholders held on June 25, 2021

Common stock¥ millions

US$ thousands¥14,186$128,141

Underlying
assetsRetainedearnings

Shareholder
dividends per share
¥

US$

¥24.0

$0.21

Record date

Effective date

March 31, 2021 June 28, 2021

Notes:
1. It is planned to submit the bill to the Ordinary General Meeting of Shareholders scheduled to be held on June 25, 2021.
2. The total amount of shareholder dividends includes ¥17 million of the dividends for the Company’s treasury share owned by the BIP Trust.

Note 19

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

US$ thousands

2020

2021

2021

¥ 861,770¥ 1,020,246$ 9,215,490

Less: deposits with an original maturity of more than three months(10,210)(37,310)(337,006)

Call loans

35,66940,737367,961

As of March 31,

Cash and deposits

Monetary claims purchased

135,313

181,191

1,636,628

Less: monetary claims purchased other than cash equivalents(115,313)(126,192)(1,139,847)

Monetary trusts

970,622

1,139,054

10,288,631

Less: monetary trusts other than cash equivalents(959,911)(1,132,161)(10,226,369)

Cash and cash equivalents¥ 917,940¥ 1,085,565$ 9,805,487¥ millions

US$ thousands

Note 20

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:
As of March 31,

Due within one year

2020

2021

2021

¥5

¥ 4

$ 42

Due after one year

4

12

111

Total

¥9

¥17

$154

T&D Holdings INTEGRATED REPORT 2021

135

Corporate Data

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

US$ thousands

2020

2021

2021

Lease income receivables¥41,994¥43,217$390,362

Estimated residual value

106

122

1,109

(3,459)(3,677)(33,214)¥38,640¥39,662$358,257

As of March 31,

Other:

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

As of March 31, 2020

Lease receivables

Lease investment assets

Due within one year

¥1,744¥10,041

Due after one year through two years

1,410

8,687

Due after two years through three years

1,139

7,282

Due after three years through four years

894

5,871

Due after four years through five years

670

4,116

Due after five years

1,280

5,994

As of March 31, 2021

Lease receivables

Lease investment assets

Lease receivables

Lease investment assets

Due within one year

¥1,715¥10,464$15,491$94,522

Due after one year through two years

1,440

9,068

13,013

81,911

Due after two years through three years

1,182

7,673

10,68369,309Due after three years through four years

938

5,914

8,472

53,423Due after four years through five years

683

4,125

6,174

37,265

1,212

5,970

10,95353,930¥ millions

Due after five years

Note 21

US$ thousands

Tax-Effect Accounting(1) Breakdown of the accrual of deferred tax assets and liabilities by main causes
As of March 31,¥ millions

US$ thousands

2020

2021

2021

Deferred tax assets:¥ 67,950¥ 70,303

Policy reserves

62,27861,746557,732

Net defined benefit liability

29,91529,121

263,042

Devaluation losses on securities

17,911

19,067

172,232

Losses on disposal of fixed assets

5,361

6,024

54,417

02,652

23,963

2,243

2,455

22,179Reserve for possible loan losses

609

1,046

9,452

Tax loss carry-forward

754

836

7,556

12,756

13,228

119,485

Subtotal

199,781

206,483

1,865,082

Valuation allowance(18,262)(18,643)(168,396)

Total deferred tax assets

181,519

187,840

1,696,685

Valuation difference on available-for-sale securities(99,076)(216,450)(1,955,108)

Accrued dividend income(2,617)(2,325)(21,008)

(709)

(702)

(6,348)(1,150)(4,527)(40,897)

Reserve for price fluctuations

Valuation difference on available-for-sale securities
Provision for bonuses

Others$635,019

Deferred tax liabilities:

Deferred gain on reduction of carrying amount of real estate
Others136

Total deferred tax liabilities(103,553)(224,006)(2,023,362)

Net deferred tax assets (liabilities)¥ 77,965¥ (36,166)$ (326,677)

T&D Holdings INTEGRATED REPORT 2021

(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

2020

2021

28.0%

28.0%
0.2

(Adjustments)
Valuation allowance

2.6

Permanent non-deductible items including entertainment expense, etc.

0.5

0.2

Equity in earnings (losses) of affiliates

0.1(16.5)

Retained earnings of subsidiaries and affiliates—

1.3

Others

(0.1)

1.4

31.1%

14.6%

Corporate tax rate, etc., after applying tax-effect accounting

Note 22

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

though intended to ensure stable returns, are exposed toa. Policy for handling financial instruments

credit risks of borrowers’ default. A policy loan is provided

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

within the surrender value of each insurance policy, thus its

ness. The Group underwrites various classes of life insurance

credit risk is minimal.

and invests the money collected as insurance premiums infinancial assets including securities and loans.

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

In order to efficiently invest the insurance premiums trust-agreements are used primarily to hedge price fluctuation

ed to us by the policyholders, the Group’s asset management

risks of our financial assets, and partially to complement

policy aims to build a portfolio which ensures long-term

physical assets by, for example, providing a solution to thestable returns considering the characteristics of obligations

time constraint prior to the inclusion of physical assets into

involved in life insurance policies, based on the concept ofour portfolio. Accordingly, the Group does not enter into

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

those transactions for speculative purposes.

the same time, paying adequate attention to the soundness
and public nature of the investments.
Derivative financial instruments are used to hedge fluctuation risks involved in our investment in financial instruments,
as well as partially complement physical assets.

Stringent risk management is in place for derivative transactions, by clearly defining tolerable allowances in terms ofthe details, hedged items and trading limits of the transactions as well as by properly controlling their status.
Hedge accounting is appropriately practiced in interest rate

Furthermore, in order to pursue greater financial sound-swap agreements for loans and forward exchange contracts

ness, the Group has been financing the subordinated-classfor foreign currency-denominated assets, under the internal

capital (bonds and borrowings).

rules clearly defining qualifications, applicable types of transactions, methods of evaluation of its effectiveness and meth-b. Details and risks of financial instruments

ods of its designation. Effectiveness of hedging is determined

Financial assets held by the Group mainly comprise securities

by ratio analysis methodology comparing the movements ofand loans.

fair values of the hedged items and hedging instruments.

Securities include public and corporate bonds, stocks andinvestment trusts offered at home and abroad that are held
on a long-term basis for the purpose of investment gearedc. Risk management system for financial instruments(i) Overall risk management system

to market prospects to ensure stable returns. These finan-

The Group, in consideration of the social and publiccial instruments are exposed to credit risks of the issuingnature of the life insurance business which is its main

entities and market risks associated with fluctuations inbusiness, defines precise identification and management

interest rate, exchange rates and stock prices, as well asof risks as one of the crucial management tasks formarket liquidity risks.

ensuring the soundness and adequacy of management,

Loans here include policy loans for policyholders andwhere the Company, as the Group’s holding company,

commercial loans (non-policy loans) provided mainly tohas developed a “Group Risk Management Policy” whichdomestic businesses and individuals. Commercial loans,sets out the basic risk management philosophy within

T&D Holdings INTEGRATED REPORT 2021

137

Corporate Data

the Group and provides the appropriate risk manage-(iii) Management of credit risk

ment structure according to the business characteristics

Credit risk of the entire portfolio is identified and con-and risk profiles of each of the Company including thetrolled through its quantification by the use of VaRThree Life Insurance Companies.

based on an internal rating for individual borrowers.

As an organizational structure, the Group Risk

Meanwhile, the aggregate amount of investment andManagement Committee has been established for theloans is capped by each industry sector or by group of

purpose of coordinated management of risks within thecompanies according to the corresponding risks, where-

Group, and has a clear understanding of the status ofby concentration of loans to specific industry sectors orvarious risks at each company including the Three Life
Insurance Companies, through reports prepared on a reg-groups of companies is restrained.
(iv) Management of liquidity risk

ular or as-needed basis at each company using the unified

Liquidity risks are properly managed by ensuring a con-risk management criteria. Further, the Company provides

stant amount of liquidity based on the Risk Management

guidance and advice as appropriate to companies includ-

Department’s precise understanding of the latest risk

ing the Three Life Insurance Companies, to carry out thor-

information, including the share of highly liquid assets,ough risk management at each company and strengthen

cash flow situation, trends of the general financial/securi-

the Group’s entire risk management system.

ties markets and the status of individual financial instru-

At each of the Three Life Insurance Companies, a committee has been established to supervise company-wide

ments, as well as by developing a management structurethat enables smooth liquidation of assets for financing.

risk management at an enhanced level, while a mutual
check-and-balance system is in place under the internal or-

value, etc., of financial instruments

investment and loan execution function from the admin-

Fair value is based on market price or rationally estimatedistration function within the investment division, indepen-

fair value if the market price is not readily available.

dence of the credit check function and implementation of

Estimation of fair value requires the use of certain as-

the internal audits by the Internal Auditing Department.

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

Furthermore, the Group has established the ERM com-

etc. may lead to a different value.

mittee to manage risks integrally with profit and capitalIn addition, notional amounts of derivative financial in-on an economic value basis. Through the promotion andstruments shown in “(2) Matters related to fair value, etc.,

enhancement of ERM, the Group aims for steady andof financial instruments” do not represent exposure tosustainable growth in its corporate value.

market risks.

(ii) Management of market risk
Market risks are properly controlled according to therisk characteristic of each asset based on a precise
understanding of the sensitivity of investment assets
to parameters reflecting changes in the investment
environment, including interest rate, stock prices andexchange rates, as well as by reviewing asset allocation
and risk hedging based on identification of the overallrisk of the portfolio using the Value at Risk criterion(hereafter referred to as “VaR”).

138d.	Supplementary notes concerning the matters related to fairganizational arrangement including the separation of the

T&D Holdings INTEGRATED REPORT 2021

(2) Matters related to fair value, etc., of financial instruments
The following tables show consolidated balance sheet amounts, fair values and differences. Financial instruments deemed extremely
difficult to determine fair value are not included. (See Annotation 2.)¥ millions

As of March 31, 2020

Cash and deposits

Consolidatedbalance sheet amount¥Treated as securities

861,770¥

Fair value

Difference

861,770¥—

65,50065,500—65,50065,500—

Others796,270796,270—

Call loans

35,66935,669—

Monetary claims purchased

135,313

137,600

2,286

Treated as securities

131,756

133,905

2,148

Held-to-maturity bonds

49,186

51,3352,148

Available-for-sale securities

82,57082,570

—

3,557

3,694

137
89,096

Available-for-sale securities

OthersMonetary trusts

970,622

1,059,719

Monetary trusts for trading purposes

5,173

5,173

—

Monetary trusts for held-to-maturity purposes

30,022

31,767

1,745

Monetary trusts for policy reserve-matching purposes

615,739703,09087,351

Monetary trusts for other than trading, held-to-maturity or policy reserve-matching purposes

319,687

319,687—

11,800,219

12,520,770

720,550

26,41926,419—Held-to-maturity bonds

1,048,128

1,251,165

203,036

Policy reserve-matching bonds

3,674,053

4,191,567

517,514

Available-for-sale securities

7,051,617

7,051,617—

1,696,347

1,738,682

42,334

126,925

140,550

13,633

1,570,613

1,598,132

28,701

Securities
Trading securities

Loans
Policy loans*1
Commercial loans*1
Reserve for possible loan losses*2
Total assets
Short-term debentures(1,191)——

15,499,943

16,354,212

854,269

5,999

5,999

—

Bonds

187,005

186,467(537)

Cash collateral received for bond-lending transactions within other liabilities

389,338

389,338—

Borrowings within other liabilities

48,95748,98629

631,300

630,792(508)

Hedge accounting not applied

16,997

16,997—

Hedge accounting applied(8,141)(7,494)646

Total liabilities
Derivative financial instruments*3:

Total derivative financial instruments

¥

8,856

¥

9,502

¥

646

*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.

T&D Holdings INTEGRATED REPORT 2021

139

Corporate Data

¥ millions

As of March 31, 2021

Cash and deposits
Treated as securities

Consolidatedbalance sheet amount

Fair value¥ 1,020,246¥ 1,020,246

76,00076,000—Difference¥—

76,00076,000—

Others944,246944,246—

Call loans

40,73740,737—

Monetary claims purchased

181,191

182,600

1,409

Treated as securities

177,830

179,127

1,296

Held-to-maturity bonds

98,20799,503

1,296

Available-for-sale securities

79,623

79,623

—

3,360

3,472

112

1,139,054

1,194,495

55,441

4,840

4,840

—

Available-for-sale securities

OthersMonetary trusts
Monetary trusts for trading purposes
Monetary trusts for held-to-maturity purposes

30,17630,951

774

Monetary trusts for policy reserve-matching purposes

694,770

749,437

54,666409,265

409,265—

12,585,841

13,123,463

537,62230,10530,105—

Held-to-maturity bonds

1,014,956

1,184,092

169,136

Policy reserve-matching bonds

4,079,227

4,447,712

368,485

Available-for-sale securities

7,461,552

7,461,552—

1,731,960

1,761,690

29,730

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

Loans
Policy loans*1
Commercial loans*1
Reserve for possible loan losses*2
Total assets
Short-term debentures

105,944

115,706

9,768

1,628,733

1,645,984

19,961(2,717)——

16,699,031

17,323,234

624,202

5,999

5,999

—
158

Bonds

157,000

157,158

Cash collateral received for bond-lending transactions within other liabilities

709,666

709,666—

Borrowings within other liabilities

46,921

46,95937

919,587

919,783

195

Total liabilities
Derivative financial instruments*3:
Hedge accounting not applied
Hedge accounting applied
Total derivative financial instruments

140

T&D Holdings INTEGRATED REPORT 2021

6,645

6,645

—

(113,021)(112,510)

511¥ (106,375)¥ (105,864)¥511

US$ thousands

Consolidatedbalance sheet amount

As of March 31, 2021$

Cash and deposits

9,215,490

Fair value$

686,478

Treated as securities

9,215,490

Difference$—

686,478—

686,478

686,478—

Others8,529,012

8,529,012—

Call loans

367,961

367,961—

Monetary claims purchased

1,636,628

1,649,356

12,728Treated as securities

1,606,277

1,617,986

11,709Held-to-maturity bonds

887,066

898,775

11,709Available-for-sale securities

719,210719,210—30,351

31,3691,018

10,288,631

10,789,413

500,782

43,72343,723—Available-for-sale securities

OthersMonetary trusts
Monetary trusts for trading purposes
Monetary trusts for held-to-maturity purposes
Monetary trusts for policy reserve-matching purposes

272,576

279,574

6,997

6,275,592

6,769,376

493,784

3,696,738

3,696,738—

113,682,970

118,539,099

4,856,128

271,930

271,930—

Held-to-maturity bonds

9,167,699

10,695,446

1,527,747

Policy reserve-matching bonds

36,846,062

40,174,443

3,328,381

Available-for-sale securities

67,397,278

67,397,278—

15,644,118

15,912,659

268,540

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

Loans
Policy loans*1
Commercial loans*1
Reserve for possible loan losses*2
Total assets
Short-term debentures

956,959

1,045,129

88,235

14,711,708

14,867,529

180,305(24,549)——

150,835,800

156,473,980

5,638,180

54,19354,193

—
1,427

Bonds

1,418,119

1,419,546

Cash collateral received for bond-lending transactions within other liabilities

6,410,136

6,410,136—

423,823

424,165341

8,306,273

8,308,042

1,769

Borrowings within other liabilities
Total liabilities
Derivative financial instruments*3:
Hedge accounting not applied
Hedge accounting applied
Total derivative financial instruments$

60,03060,030—(1,020,880)(1,016,264)

4,615(960,850)$(956,234)

$

4,615

*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.

Annotation 1c.	Monetary claims purchased: Those which are deemed appro-

Matters relating to the calculation method for the fair value ofpriate to treat as securities are recorded in the same way asfinancial instruments as well as securities and derivative transactions.

securities, while others which are deemed appropriate to treat

Assetsas loan receivable are recorded in the same way as loans.

a.	Cash and deposits: mainly recorded in carrying amounts astheir fair values are proximate to the carrying amounts.

d.	Monetary trusts: Monetary trusts which are mainly invested
in securities are recorded in the same way as securities, whileb.	Call loans: recorded in carrying amounts as these are settled

monetary trusts which have similar nature with cash and de-in a short period, thus their fair values are proximate to theposits are recorded in carrying amounts. In addition, currency

carrying amounts.

options and stock index option contracts, etc., are used inmonetary trusts where their fair values are calculated basedon prices quoted by the counterparty financial institutions.

T&D Holdings INTEGRATED REPORT 2021

141

Corporate Datae.	Securities: Fair values of securities are mainly based on their

to consolidated balance sheet amounts less uncollectableprices quoted on the stock exchange concerned, while thoseamounts at the consolidated closing date. These valuesof bonds are based on the statistics for reference publishedare recorded as fair values.

by the Japan Securities Dealers Association or on the prices

However, for compound financial instruments, fair val-

quoted by the underwriting financial institutions. Fair values ofues are based on their prices quoted by the underwriting

investment trusts are based on the published base prices, etc.

financial institutions.

See “Note 23 Securities” for notes related to securities byholding purposes.

Liabilitiesa.	Short-term debentures: Recorded in carrying amounts. Fairf.

Loans:

values are proximate to carrying amounts because these are(i)	Policy loans: Fair value is calculated by discounting thesettled in a short period.

expected future cash flow derived from the repayment
rate based on the past actual repayment performance by
the risk-free rate.

b.	Bonds: Fair values are based on the statistics for reference
published by the Japan Securities Dealers Association or on(ii)	Commercial loans: A variable interest rate loan reflects thethe prices quoted by the underwriting financial institutions ormarket interest rate in a short period. Therefore, it is re-calculated by discounting the total of principal and interest

corded at carrying amount as its fair value is proximate toby risk-free rates weighted by credit risks involved.

the carrying amount unless the borrower’s credit standing
significantly changes after the loan is provided.

c.	Cash collateral received for bond-lending transactions:

Fair value of fixed interest rate loans is calculated by

Recorded in carrying amounts. Fair values are proximate todiscounting the total of principal and interest by risk-freecarrying amounts because these are short-term transactions.

rates weighted by credit risks involved.
For loans to bankrupt companies, loans to effectivelyd.	Borrowings: Fair values are calculated by discounting thebankrupt companies and loans to potentially bankrupt

total of principal and interest by risk-free rates weighted bycompanies, since estimated uncollectable amounts are

credit risks involved.

calculated based on the present value of the estimatedfuture cash flows or estimated amounts recoverable

Derivative transactions: see “Note 25 Derivative Transactions.”

through pledge or guarantee, fair values are proximate

Annotation 2
The balance sheet amounts of financial instruments deemed extremely difficult to determine fair value, which are not included in “e.
Securities” of “Assets” are summarized as follows:¥ millions

As of March 31,

US$ thousands

2020

2021

2021

Investments in affiliates

¥

1,087

¥179,675$1,622,942

Available-for-sale securities

220,198

267,229

2,413,777

Unlisted stocks *1, *2

17,071

18,126

163,726

Foreign securities *1, *2, *3

176,102221,281

1,998,744

Other securities *2, *3

27,02327,822

251,306*1. Unlisted stocks are exempt from disclosure of fair value because fair value is considered extremely difficult to obtain due to the lack of market value.
*2. Impairment losses:– For the year ended March 31, 2020: foreign securities of ¥1,390 million, other securities of ¥105 million and unlisted stocks of ¥6 million.
– For the year ended March 31, 2021: foreign securities of ¥2,299 million [$20,766 thousand], other securities of ¥694 million [$6,271 thousand] and unlisted stocks of ¥392 million [$3,547 thousand].
*3. Investment in capital of partnership is exempt from disclosure of fair value because the partnership assets comprise financial instruments deemed extremely difficult to determine fair value such as
unlisted stocks.

142

T&D Holdings INTEGRATED REPORT 2021

Annotation 3
Scheduled redemption amounts after the consolidated closing date for monetary claims and fixed-maturity securities are as follows:¥ millions

As of March 31, 2020

Due in one year
or less

Due after one year
through five years

Due after five years
through ten years

¥

¥

—

—

Due after ten years

Deposits¥861,634

Call loans

35,669

—

—

¥

—
—

Monetary claims purchased

20,132

1,870

1,383

105,881

Securities:
Held-to-maturity bonds:
Government bonds

57,702

237,047

41,589535,875

Municipal bonds

—

664

3,120

27,586

Corporate bonds

11,60442,656—

101,214

Foreign securities

—

—

—

4,542

Policy reserve-matching bonds:
3,183

158,950

208,517

1,908,648

Municipal bonds

Government bonds—

14,161

44,974

214,972

Corporate bonds

11,000120,330

149,245769,312

Foreign securities

—

3,444

21,112

11,458Government bonds

11,171

85,56545,030385,748

Municipal bonds

6,119

12,316

21,63016,384

Corporate bonds

91,647313,060

297,606

182,938

Foreign securities

236,968

736,246

892,218

577,428

—

20

2

—

169,722644,052

513,644

227,254

Available-for-sale fixed maturity securities:

Other securities
Loans* Securities without contractual maturity dates in the amount of ¥1,153,825 million are not included. In addition, loans without contractual maturity dates such as policy loans in the amount of ¥143,051
million are not included.

¥ millions

Due in one year
or less

Due after one year
through five years

Due after five years
through ten years

Deposits¥1,020,132¥¥

Call loans

40,737———

Monetary claims purchased

55,166

3,188

3,781

114,293

As of March 31, 2021——

Due after ten years¥—

Securities:
Held-to-maturity bonds:
133,604

112,296

235,365

353,246

Municipal bonds

36

811

4,493

35,105

Corporate bonds

17,971

24,685

10,93597,654Foreign securities

—

—

—

3,536

Government bonds

Policy reserve-matching bonds:
15,828194,166

240,679

2,139,636

Municipal bonds

85

31,81030,520230,584

Corporate bonds

20,500115,369

177,032

811,527

Foreign securities

—

8,123

31,685

8,608

Government bonds

55,40033,52541,870359,848

Municipal bonds

3,602

12,817

19,066

16,031

Corporate bonds

70,227

317,482258,755

190,138

Foreign securities

83,227929,891

693,914

671,765

—

6

459

—

177,942656,817541,091

227,456

Government bonds

Available-for-sale fixed maturity securities:

Other securities
Loans

T&D Holdings INTEGRATED REPORT 2021

143

Corporate Data

US$ thousands

Due in one year
or less

As of March 31, 2021

Due after one year
through five years$—

Due after five years
through ten years$

Due after ten years

Deposits$9,214,461

—

$

—

Call loans

367,961———

Monetary claims purchased

498,297

28,80034,153

1,032,372

1,206,794

1,014,331

2,125,966

3,190,735

Securities:
Held-to-maturity bonds:
Government bonds
Municipal bonds

331

7,325

40,584

317,096

Corporate bonds

162,324

222,975

98,774

882,073

Foreign securities

—

—

—

31,947

142,968

1,753,825

2,173,958

19,326,492

Policy reserve-matching bonds:
Government bonds
Municipal bonds

773

287,327

275,683

2,082,777

Corporate bonds

185,168

1,042,083

1,599,062

7,330,209

Foreign securities—

73,376286,200

77,755500,406

302,818

378,196

3,250,371

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

32,540115,774

172,219

144,807

Corporate bonds

634,340

2,867,697

2,337,241

1,717,450

Foreign securities

751,763

8,399,349

6,267,860

6,067,796

—

57

4,150

—

1,607,285

5,932,778

4,887,471

2,054,521

Other securities
Loans* Securities without contractual maturity dates in the amount of ¥1,286,416 million [$11,619,698 thousand] are not included. In addition, loans without contractual maturity dates such as policy loans in
the amount of ¥131,526 million [$1,188,031 thousand] are not included.

Annotation 4
Scheduled repayment amounts after the consolidated closing date for bonds, borrowings, and other liabilities are as follows:¥ millions

As of March 31, 2020

Due in one year
or less

Short-term debenture

¥

5,999

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

—
—

—
—

—
—

—

Bonds

30,000Cash collateral received for bond-lendingtransactions within other liabilities

389,338

—

—

—

—

—

Borrowings within other liabilities

10,792

8,063

6,176

4,916

3,546

15,463

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

Due after five years

¥

¥

¥

¥

¥

¥ millions

As of March 31, 2021¥

Short-term debenture

6,000
—

Bonds
Cash collateral received for bond-lendingtransactions within other liabilities

—
—

—
—

—
—

—
—

—
157,000

709,666

—

—

—

—

—

9,622

7,735

6,475

5,106

2,723

15,257Due 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

US$ thousands

As of March 31, 2021

Short-term debenture
Bonds
Cash collateral received for bond-lendingtransactions within other liabilities
Borrowings within other liabilities

144

T&D Holdings INTEGRATED REPORT 2021$

54,195————Due after five years

$

—

—

—

—

—

—

1,418,119

6,410,136

—

—

—

—

—

86,917

69,87358,492

46,125

24,599137,816

Note 23

Securities(1) Trading securities¥ millions

As of March 31,

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

US$ thousands

2020

2021

2021

¥(10,115)¥4,392$39,671(2) Held-to-maturity bonds¥ millions

As of March 31, 2020

Consolidatedbalance sheet amount

Fair value

Difference

Fair value exceeding consolidated balance sheet amount:
Domestic bonds¥1,040,049¥1,243,100¥203,051

Government bonds

854,917

1,022,633

167,715Municipal bonds

30,75038,976

8,225

Corporate bonds

154,381

181,491

27,110Foreign securities

4,695

4,785

90

Foreign bonds

4,695

4,785

90

Other securities

42,81145,022

2,210

Total

1,087,557

1,292,909

205,351

Fair value not exceeding consolidated balance sheet amount:
Domestic bonds

3,383

3,278

(104)

Government bonds

1,083

1,019

(64)

Municipal bonds

1,000

993

(6)

Corporate bonds

(34)

1,300

1,265

Other securities

6,374

6,312

(61)

Total

9,757

9,591

(166)

¥1,097,314¥1,302,500¥205,185

Grand total

Note: Other securities include beneficiary trust certificates (consolidated balance sheet amount of ¥49,186 million) which are represented as monetary claims purchased in the consolidated balance sheet.

¥ millions

As of March 31, 2021

Consolidatedbalance sheet amount

Fair value

Difference

Fair value exceeding consolidated balance sheet amount:¥ 960,568¥1,130,602¥170,033

Government bonds

796,028

935,574

139,546

Municipal bonds

30,17437,594

7,419

Corporate bonds

Domestic bonds

134,365

157,433

23,068Foreign securities

2,058

2,104

45

Foreign bonds

2,058

2,104

45

Other securities

46,51248,088

1,575

Total

1,009,139

1,180,795

171,655

Fair value not exceeding consolidated balance sheet amount:
50,78549,842(942)

Government bonds

23,06022,872(187)

Municipal bonds

10,623

10,531(92)

Corporate bonds

17,101

16,438(662)

Foreign securities

1,543

1,543

(0)

Foreign bonds

1,543

1,543

(0)

Other securities

51,694

51,415(279)

Domestic bonds

Total
Grand total

104,023

102,801(1,222)¥1,113,163¥1,283,596¥170,433

T&D Holdings INTEGRATED REPORT 2021

145

Corporate Data

US$ thousands

As of March 31, 2021

Consolidatedbalance sheet amount

Fair value

Difference

Fair value exceeding consolidated balance sheet amount:$ 8,676,439$10,212,287$1,535,847

Government bonds

7,190,214

8,450,678

1,260,464

Municipal bonds

272,558

339,572

67,014

Corporate bonds

1,213,667

1,422,036

208,368

18,59419,008414

Domestic bonds

Foreign securities
Foreign bonds

18,59419,008414

Other securities

420,129434,363

14,233

Total

9,115,164

10,665,659

1,550,495

458,725450,211(8,514)Government bonds

208,296

206,600(1,696)

Municipal bonds

95,956

95,124(831)

Corporate bonds

154,472

148,486(5,985)

Foreign securities

13,93913,939(0)Foreign bonds

13,93913,939(0)

Other securities

466,936

464,412(2,524)

Total

939,601

928,563(11,038)$10,054,765$11,594,222$1,539,456

Fair value not exceeding consolidated balance sheet amount:
Domestic bonds

Grand total

Note: O ther securities include commercial paper (consolidated balance sheet amount of ¥34,998 million [$316,130 thousand]) and beneficiary trust certificates (consolidated balance sheet amount of¥63,208 million [$570,935 thousand]) which are represented as monetary claims purchased in the consolidated balance sheet.

(3) Policy reserve-matching bonds¥ millions

As of March 31, 2020

Consolidatedbalance sheet amount

Fair value

Difference

Fair value exceeding consolidated balance sheet amount:
Domestic bonds¥3,072,405¥3,595,042¥522,636

Government bonds

1,973,801

2,336,137

362,336

Municipal bonds

217,593

247,806

30,213

Corporate bonds

881,010

1,011,097

130,086

Foreign securities

37,02142,993

5,972

Foreign bonds

37,02142,993

5,972

3,109,427

3,638,035

528,608

562,975

551,913(11,062)

Government bonds

326,897

321,116(5,781)

Municipal bonds

57,90656,464(1,442)

Corporate bonds

178,171

174,332(3,839)Foreign securities

1,650

1,618

(31)

Foreign bonds

1,650

1,618

(31)

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

Total
Grand total

146

T&D Holdings INTEGRATED REPORT 2021

564,626

553,532(11,094)¥3,674,053¥4,191,567¥517,514¥ millions

As of March 31, 2021

Consolidatedbalance sheet amount

Fair value

Difference

Fair value exceeding consolidated balance sheet amount:¥2,822,710¥3,236,625¥413,915

Government bonds

1,881,855

2,167,918

286,062

Municipal bonds

189,352

213,897

24,544

Corporate bonds

751,501

854,809103,307

40,15943,751

3,591

Domestic bonds

Foreign securities
Foreign bonds
Total

40,15943,751

3,591

2,862,870

3,280,377

417,506

Fair value not exceeding consolidated balance sheet amount:
1,205,313

1,156,911(48,401)

Government bonds

718,541

688,766(29,774)

Municipal bonds

105,036

100,601(4,435)

Corporate bonds

381,735

367,543(14,191)

Foreign securities

11,043

10,423(619)

Foreign bonds

11,043

10,423

(619)

Total

1,216,357

1,167,335(49,021)

Grand total¥4,079,227¥4,447,712¥368,485

Domestic bonds

US$ thousands

Consolidatedbalance sheet amount

Fair value

Difference$25,496,437$29,235,170$3,738,733

Government bonds

16,998,065

19,581,957

2,583,891

Municipal bonds

1,710,350

1,932,053

221,703

Corporate bonds

6,788,021

7,721,160

933,138

Foreign securities

362,746

395,189

32,442Foreign bonds

362,746

395,189

32,44225,859,184

29,630,360

3,771,176

As of March 31, 2021

Fair value exceeding consolidated balance sheet amount:
Domestic bonds

Total
Fair value not exceeding consolidated balance sheet amount:

10,887,126

10,449,930(437,195)

Government bonds

6,490,303

6,221,359(268,943)

Municipal bonds

948,754908,692(40,061)

Corporate bonds

Domestic bonds

3,448,068

3,319,878(128,190)

Foreign securities

99,751

94,152(5,599)Foreign bonds

99,751

94,152(5,599)

Total

10,986,878

10,544,083(442,794)Grand total$36,846,062$40,174,443$3,328,381

T&D Holdings INTEGRATED REPORT 2021

147

Corporate Data

(4) Available-for-sale securities¥ millions

As of March 31, 2020

Consolidatedbalance sheet amount

Acquisition cost

Difference

Consolidated balance sheet amount exceeding acquisition cost:
Domestic bonds¥1,534,867¥1,460,004¥ 74,863

Government bonds

381,231358,037

23,194

Municipal bonds

49,07844,4864,592

Corporate bonds

1,104,557

1,057,480

47,077

Domestic equities

353,924

187,850

166,074

Foreign securities

2,842,046

2,652,532

189,513

Foreign bonds

2,261,281

2,095,946

165,335

Foreign equities

1

1

0

580,762556,584

24,178Foreign other securities
Other securities

170,451

146,749

23,702

Total

4,901,290

4,447,136

454,154

Consolidated balance sheet amount not exceeding acquisition cost:
Domestic bonds

445,938

455,536(9,597)

Government bonds

205,266

211,051(5,785)

Municipal bonds

11,76012,258(498)

Corporate bonds

228,912232,226(3,314)

Domestic equities

230,175

264,750(34,574)

Foreign securities

1,343,406

1,419,373(75,966)

Foreign bonds

508,957

538,162(29,204)

Foreign equities

17,236

19,175(1,939)Foreign other securities

817,212862,035(44,822)

Other securities

278,876

300,555(21,679)

Total

2,298,397

2,440,215(141,818)Grand total¥7,199,688¥6,887,352¥ 312,335

Note: Other securities include certificates of deposit (consolidated balance sheet amount of ¥65,500 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 ¥62,570 million) which are represented as monetary claims purchased in the consolidated balance sheet.

¥ millions

As of March 31, 2021

Consolidatedbalance sheet amount

Acquisition cost

Difference

Consolidated balance sheet amount exceeding acquisition cost:¥1,559,072¥1,488,597¥ 70,474

Government bonds

341,044

321,736

19,308Municipal bonds

45,75441,9453,808

Corporate bonds

1,172,273

1,124,915

47,357

Domestic bonds

Domestic equities

732,871416,209

316,661

Foreign securities

3,643,381

3,340,857

302,523

Foreign bonds

2,028,223

1,901,926

126,296

Foreign equities

21,616

19,7361,880

1,593,541

1,419,194

174,346

Foreign other securities
Other securities

392,582

320,452

72,129

Total

6,327,907

5,566,117

761,789

Consolidated balance sheet amount not exceeding acquisition cost:
331,465

342,121(10,655)

Government bonds

196,239

204,827(8,587)

Municipal bonds

9,174

9,761

(587)

Corporate bonds

126,051

127,533(1,481)

Domestic bonds

Domestic equities

47,20051,213(4,012)Foreign securities

758,423

775,825(17,402)

Foreign bonds

571,554585,459(13,904)

Foreign equities

422

432

(9)

186,446

189,934(3,487)

Foreign other securities

148

Other securities

152,179

153,385(1,206)

Total

1,289,269

1,322,546(33,277)

Grand total¥7,617,176¥6,888,663¥728,512

T&D Holdings INTEGRATED REPORT 2021

US$ thousands

As of March 31, 2021

Consolidatedbalance sheet amount

Acquisition cost

Difference

Consolidated balance sheet amount exceeding acquisition cost:$14,082,486$13,445,913$ 636,572

Government bonds

3,080,522

2,906,120

174,402

Municipal bonds

413,281

378,876

34,404

Corporate bonds

10,588,682

10,160,916

427,766

Domestic bonds

Domestic equities

6,619,738

3,759,457

2,860,280

Foreign securities

32,909,234

30,176,656

2,732,578

Foreign bonds

18,320,144

17,179,356

1,140,788

Foreign equities

195,256

178,273

16,982

14,393,833

12,819,026

1,574,807

Foreign other securities
Other securities

3,546,042

2,894,525

651,517

Total

57,157,501

50,276,552

6,880,949

Consolidated balance sheet amount not exceeding acquisition cost:
2,994,001

3,090,252(96,250)Government bonds

1,772,558

1,850,126(77,567)

Municipal bonds

82,866

88,168(5,302)

Corporate bonds

1,138,576

1,151,956(13,380)

Domestic bonds

Domestic equities

426,344462,591(36,246)

Foreign securities

6,850,541

7,007,726(157,185)

Foreign bonds

5,162,627

5,288,223(125,595)

Foreign equities

3,816

3,902

(85)

1,684,096

1,715,601(31,504)

Foreign other securities
Other securities

1,374,578

1,385,474(10,895)

Total

11,645,465

11,946,044(300,578)

Grand total$68,802,967$62,222,596$6,580,370

Note: Other securities include certificates of deposit (consolidated balance sheet amount of ¥76,000 million [$686,478 thousand]) which are represented as cash and deposits, commercial paper (consolidated balance sheet amount of ¥19,999 million [$180,649 thousand]) and beneficiary trust certificates (consolidated balance sheet amount of ¥59,624 million [$538,560 thousand]) which are
represented as monetary claims purchased in the consolidated balance sheet.

(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, 2020.
– There were no sales of securities classified as held-to-maturity bonds for the year ended March 31, 2021.

T&D Holdings INTEGRATED REPORT 2021

149

Corporate Data

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

Year ended March 31, 2020

Domestic bonds

Proceeds of sales

Gross gains

Gross losses¥ 0¥121,570¥24,465

Government bonds

118,403

24,0040

Corporate bonds

3,166

460

—

¥121,570¥24,465¥ 0

Proceeds of sales

Gross gains

Gross losses

Total¥ millions

Year ended March 31, 2021

¥77,487¥9,329¥1,911Government bonds

72,978

9,301

1,910

Corporate bonds

4,509

27

Domestic bonds¥

Foreign securities

172

¥

0

40

¥

—

172

40

—

¥77,660¥9,370¥1,911

Proceeds of sales

Gross gains

Gross losses$699,917$84,269$17,264

Government bonds

659,186

84,017

17,258

Corporate bonds

40,730252

Foreign bonds
Total

US$ thousands

Year ended March 31, 2021

Domestic bonds

Foreign securities
Foreign bonds
Total

$

1,561

$

369

6
$

—

1,561

369

—

$701,478$84,638$17,264

Proceeds of sales

Gross gains

Gross losses¥ 43,233¥ 8,244

5,206

761

(7) Sales of securities classified as available-for-sale securities¥ millions

Year ended March 31, 2020

Domestic bonds
Government bonds¥

0—

Corporate bonds

38,026

7,482

0

Domestic equities

48,039

8,756

7,564

Foreign securities

617,71224,064

17,265

Foreign bonds

542,889

18,541

12,462Foreign equities

307

5

4

74,515

5,517

4,798

Foreign other securities
Other securities

24,395

1,633

2,676

Total

¥733,381¥42,697¥27,507

Proceeds of sales

Gross gains

Gross losses¥ millions

Year ended March 31, 2021

286

¥ 2,258

Government bonds

41,768282

1,419

Municipal bonds

3,507

—

92

Corporate bonds

20,5403746

Domestic bonds

150¥ 65,816¥

Domestic equities

30,012

11,0501,016

Foreign securities

779,646

20,601

26,217

Foreign bonds

725,755

15,992

23,044Foreign equities

1,344

23

186

Foreign other securities

52,545

4,585

2,985

Other securities

35,838

1,445

1,736

Total

¥911,314¥33,382¥31,228

T&D Holdings INTEGRATED REPORT 2021

US$ thousands

Year ended March 31, 2021

Domestic bonds

Proceeds of sales$ 594,498

Gross gains

Gross losses

$

2,586

$ 20,398
12,818Government bonds

377,275

2,552

Municipal bonds

31,684—834

Corporate bonds

185,538

34

6,745

Domestic equities

271,091

99,8109,182

Foreign securities

7,042,236

186,081236,809

Foreign bonds

6,555,468

144,451

208,154

Foreign equities

12,146214

1,685

Foreign other securities

474,622

41,41526,970

Other securities

323,718

13,054

15,681

Total$8,231,544$301,533$282,071(8) Impairment of securities
The Company and its consolidated subsidiaries recognized

for the fiscal years ended March 31, 2020 and 2021, respectively.
The Company and its consolidated subsidiaries recognize im-¥13,379 million and ¥2,249 million [$20,319 thousand] as im-

pairment losses on the securities if fair value as of the end of thepairment losses for the available-for-sale securities with fair value

fiscal year declines by 30% or more from their acquisition cost.

Note 24

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

As of March 31,

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

US$ thousands

2020

2021

2021

¥2,125¥(93)$(847)(2) Monetary trusts for held-to-maturity purposes¥ millions

As of March 31, 2020

Monetary trusts

Consolidatedbalance sheet amount

Fair value

Difference¥30,022¥31,767¥1,745¥ millions

As of March 31, 2021

Monetary trusts

Consolidatedbalance sheet amount

Fair value

Difference¥30,176¥30,951¥774

US$ thousands

As of March 31, 2021

Monetary trusts

Consolidatedbalance sheet amount

Fair value

Difference$272,576$279,574$6,997

T&D Holdings INTEGRATED REPORT 2021

151

Corporate Data

(3) Monetary trusts for policy reserve-matching purposes¥ millions

As of March 31, 2020

Monetary trusts

Consolidatedbalance sheet amount

Fair value

Difference¥615,739¥703,090¥87,351¥ millions

As of March 31, 2021

Monetary trusts

Consolidatedbalance sheet amount

Fair value

Difference¥694,770¥749,437¥54,666

US$ thousands

As of March 31, 2021

Monetary trusts

Consolidatedbalance sheet amount

Fair value

Difference$6,275,592$6,769,376$493,784(4) Monetary trusts for those other than trading, held-to-maturity or policy reserve-matching purposes¥ millions

As of March 31, 2020

Monetary trusts

Consolidatedbalance sheet amount

Acquisition cost

Difference¥319,687¥319,114¥573¥ millions

As of March 31, 2021

Monetary trusts

Consolidatedbalance sheet amount

Acquisition cost

Difference¥409,265¥400,862¥8,403

US$ thousands

As of March 31, 2021

Monetary trusts

152

T&D Holdings INTEGRATED REPORT 2021

Consolidatedbalance sheet amount

Acquisition cost

Difference$3,696,738$3,620,832$75,906

Note 25

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

Notional amount
As of March 31, 2020

Total

Over one year

Fair value

Valuation gains(losses)Over-the-counter transactions:
Foreign exchange contracts:
Sold¥186,448¥—¥ 2,452¥ 2,452

U.S. dollar

76,327

—

(105)

(105)

Euro

55,724

—

164

164

British pound

13,412

—

475

475

Canadian dollar

771

—

42

42

Australian dollar

39,537

—

1,880

1,880

Swiss franc

674

—

(4)

(4)

29,235

—

(427)

(427)

U.S. dollar

7,869

—

(8)

(8)

Euro

1,456

—

0

0

British pound

3,593

—

(1)

(1)

Australian dollar

16,316

—

(417)

(417)

13,916

—

2,615

2,615

13,916

—

2,615

2,615

14,252—(1,217)(1,217)

674

—

0

0

13,577—(1,218)(1,218)

BoughtCurrency swaps:
Receive yen/pay foreign currency
Brazilian real
Receive foreign currency/pay yen
U.S. dollar
Australian dollar
Total¥ 3,422

Notes:
1. Calculation method of fair value
Forward exchange rates are used for the consolidated fiscal year-end foreign exchange rates.
Currency swaps are carried out using management trusts and the fair value is calculated based on the price obtained from the trustee companies.
2. 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.
¥ millions

Notional amount
As of March 31, 2021

Total

Over one year

Fair value

Valuation gains(losses)Over-the-counter transactions:
Foreign exchange contracts:¥278,364¥ —¥(7,369)¥(7,369)

U.S. dollar

98,402—(2,577)(2,577)Euro

30,239

—

(215)

(215)

British pound

53,997—(2,396)(2,396)

Canadian dollar

2,848

—

(100)

(100)

Australian dollar

89,103—(2,080)(2,080)

Sold

3,772

—

0

0

51,261

—

465

465

U.S. dollar

39,361

—

340

340

Euro

1,860

—

5

5

Australian dollar

10,039

—

120

120
(158)

Swiss franc
BoughtCurrency swaps:
4,357

—

(158)

Brazilian real

1,330

—

9

9

Indian Rupee

3,027

—

(167)

(167)

14,252

—

1,209

1,209

618

—

44

44

13,633

—

1,164

1,164

Receive yen/pay foreign currency

Receive foreign currency/pay yen
U.S. dollar
Australian dollar
Total¥(5,853)

T&D Holdings INTEGRATED REPORT 2021

153

Corporate Data

US$ thousands

Notional amount
As of March 31, 2021

Total

Over one year

Fair value

Valuation gains(losses)$Over-the-counter transactions:
Foreign exchange contracts:—$(66,562)$(66,562)

U.S. dollar$2,514,354
888,831—(23,281)(23,281)Euro

273,143—(1,945)(1,945)British pound

487,734—(21,643)(21,643)

Canadian dollar

25,730

—

(908)

(908)

Australian dollar

804,835—(18,788)(18,788)

Sold

34,079—5

5463,029

—

4,204

4,204

U.S. dollar

355,540

—

3,072

3,072

Euro

16,802—47

47

Australian dollar

90,685

—

1,085

1,085
(1,434)

Swiss franc
BoughtCurrency swaps:
39,358—(1,434)

Brazilian real

12,015—

81

81

Indian Rupee

27,342—(1,516)(1,516)

128,737—

10,923

10,923

5,587

—

401

401

123,149—

10,521

10,521

Receive yen/pay foreign currency

Receive foreign currency/pay yen
U.S. dollar
Australian dollar$(52,868)

Total

Notes:
1. Calculation method of fair value
Forward exchange rates are used for the consolidated fiscal year-end foreign exchange rates.
Currency swaps are carried out using management trusts and the fair value is calculated based on the price obtained from the trustee companies.
2. 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.

b. Interest-related transactions¥ millions

Notional amount
As of March 31, 2020

Total

Over one year

Fair value

Valuation gains(losses)¥12,969¥12,235¥14,653¥14,653

Over-the-counter transactions:Interest rate swaps:
Receive fixed/pay floating
Total¥14,653

Note: C alculation method of fair value
Fair value of interest rate swaps is calculated by discounting future cash flows to the present value based on the interest rate at the consolidated fiscal year-end or based on prices obtained fromcounterparty financial institutions.
¥ millions

Notional amount
As of March 31, 2021

Total

Over one year

Fair value

Valuation gains(losses)¥15,449¥14,546¥12,497¥12,497

Over-the-counter transactions:Interest rate swaps:
Receive fixed/pay floating¥12,497

Total

US$ thousands

Notional amount
As of March 31, 2021

Total

Over one year

Fair value

Valuation gains(losses)$139,549$131,391$112,888$112,888

Over-the-counter transactions:Interest rate swaps:
Receive fixed/pay floating
Total$112,888

Note: Calculation method of fair value
Fair value of interest rate swaps is calculated by discounting future cash flows to the present value based on the interest rate at the consolidated fiscal year-end or based on prices obtained fromcounterparty financial institutions.

154

T&D Holdings INTEGRATED REPORT 2021

c. Stock-related transactions¥ millions

Notional amount
As of March 31, 2020

Total

Over one year

Fair value

Valuation gains(losses)¥29,721¥—(2,070)(2,070)¥36,135

¥—

[948]

[—]

Market transactions:
Stock index futures:
Sold:
Stock index options:
Bought:
Put

992

Total

43
¥(2,027)

Notes:
1. Calculation method of fair value
Fair value is based on final prices at the main exchange or prices obtained from counterparty financial institutions.
2. 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, 2021

Total

Over one year

¥17,504

¥—

[201]

[—]

Fair value

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

1

(200)
¥(200)

Total

US$ thousands

Notional amount
As of March 31, 2021

Total

Over one year

$158,106$—[1,823][—]

Fair value

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

9

(1,813)$(1,813)

Notes:
1. Calculation method of fair value
Fair value is based on final prices at the main exchange or prices obtained from counterparty financial institutions.
2. Figures in square brackets for “Notional amount” represent option premiums that are reported on the consolidated balance sheet.

T&D Holdings INTEGRATED REPORT 2021

155

Corporate Data

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, 2020

Total

Over one year

1,438

1,114

[371]

[294]

786

634

[223]

[182]

652

480

[148]

[111]

Fair value

Valuation gains(losses)

107

(264)

53

(170)

53

(94)

9

6

Over-the-counter transactions:
Currency-related transactions:
Currency options:
Bought:Put
U.S. dollar
Euro
Stock-related transactions:
Stock index options:
Bought:
Call
Put

10

—

[2]

[—]

2,845

2,257

[604]

[486]

247

Total

(357)
¥(614)

Notes:
1. Calculation method of fair value
Fair value is based on prices obtained from counterparty financial institutions.
2. 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, 2021

Total

Over one year

Fair value

Valuation gains(losses)

51

(242)

33

(149)

18

(93)

Over-the-counter transactions:
Currency-related transactions:
Currency options:
Bought:Put
U.S. dollar
Euro

1,114

840

[294]

[225]

634

492

[182]

[144]

480

348

[111]

[81]

2,257

1,811

[486]

[395]

Stock-related transactions:
Stock index options:
Bought:
Put
Total

156

T&D Holdings INTEGRATED REPORT 2021

86

(399)
¥(642)

US$ thousands

Notional amount
As of March 31, 2021

Total

Over one year

Fair value

Valuation gains(losses)462(2,194)300(1,350)

162

(843)

Over-the-counter transactions:
Currency-related transactions:
Currency options:
Bought:Put

10,0677,590[2,657][2,038]

5,726

4,445

[1,650][1,305]

4,340

3,145

[1,006][732]

20,387

16,366[4,392][3,575]

U.S. dollar
Euro
Stock-related transactions:
Stock index options:
Bought:Put

784(3,608)$(5,802)

Total
Notes:
1. Calculation method of fair value
Fair value is based on prices obtained from counterparty financial institutions.
2. Figures in square brackets for “Notional amount” represent option premiums that are reported on the consolidated balance sheet.

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

Notional amount
As of March 31, 2020

Recognition of valuation gains/losses on hedged items:
Foreign exchange contracts:
Sold
U.S. dollar
Euro
British pound
Canadian dollar
Australian dollar
New Zealand dollar
Polish zloty
Danish krone
Singapore dollar
BoughtU.S. dollar
Euro
British pound
Allocation treatment for foreign exchange contracts, etc.:
Foreign exchange contracts:
Sold
Australian 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
Foreign currency-denominatedstocks (forecasted transaction)
Foreign currencydenominated loans

Total¥3,649,756
2,480,429
902,558
116,819
82,76859,631
5,101
383
1,565
498
347,374
265,672
81,234467

Over one year¥

Fair value

—
—
—
—
—
—
—
—
—
—
—
—
—
—

¥ (9,804)(22,802)
3,600
1,664
4,970
2,707
6
24
7
16
1,040
987
54
(1)

37,00037,00062,54362,543

—
—
—
—

—
—
653
653

37,93737,93737,93737,937——¥ (8,109)

Notes:
1. Calculation method of fair value
Forward exchange rates are used for the consolidated fiscal year-end foreign exchange rates.
2. Fair value of foreign exchange contracts, etc., with allocation treatments (except for the contracts hedging the forecasted transaction) 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.

T&D Holdings INTEGRATED REPORT 2021

157

Corporate Data

¥ millions

Notional amount
As of March 31, 2021

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
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

¥3,737,389
2,620,936
754,753
152,047
90,299334
115,179
1,413
713
1,600
111
384,300
303,342
19,28430,70830,965¥

Fair value

—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—

¥(113,716)(87,260)(15,153)(3,284)(3,684)(3)(4,261)
23
(17)
(69)
(5)
644
292
81
193
78

10,00010,000————37,93737,93737,93737,937——¥(113,071)
US$ thousands

Notional amount
As of March 31, 2021

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
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$33,758,372
23,673,887
6,817,392
1,373,382
815,6443,018
1,040,371
12,7686,449
14,452
1,005
3,471,236
2,739,972
174,193
277,374
279,696

Over one year$

Fair value

—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—

$(1,027,154)(788,193)(136,872)(29,666)(33,277)(30)(38,488)
209
(157)
(628)
(47)
5,823
2,639
734
1,744
705

90,32690,326————342,674
342,674

342,674
342,674——$(1,021,330)

Notes:
1. Calculation method of fair value
Forward exchange rates are used for the consolidated fiscal year-end foreign exchange rates.
2. 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.

158

T&D Holdings INTEGRATED REPORT 2021

b. Interest-related transactions¥ millions

Notional amount
As of March 31, 2020

Hedged item

Total

Over one year

Fair value¥32,731¥26,584¥646

Special treatment for interest rate swaps:
Interest rate swaps:
Loans

Receive fixed/pay floating
Total

¥646

Note: Calculation method of fair value
Fair value of interest rate swaps is calculated by discounting future cash flows to the present value based on the interest rate at the consolidated fiscal year-end or prices obtained from counterparty
financial institutions.
¥ millions

Notional amount
As of March 31, 2021

Hedged item

Total

Over one year

Fair value¥26,199¥26,199¥511

Special treatment for interest rate swaps:
Interest rate swaps:
Loans

Receive fixed/pay floating

¥511

Total

US$ thousands

Notional amount
As of March 31, 2021

Hedged item

Total

Over one year

Fair value$236,653$200,522$4,615Special treatment for interest rate swaps:
Interest rate swaps:
Loans

Receive fixed/pay floating$4,615Total

Note: Calculation method of fair value
Fair value of interest rate swaps is calculated by discounting future cash flows to the present value based on the interest rate at the consolidated fiscal year-end or prices obtained from counterparty
financial institutions.

c. Stock-related transactions¥ millions

Notional amount
As of March 31, 2020

Hedged item

Total

Over one year

Fair value¥8,235¥—¥(31)

Recognition of valuation gains/losses on hedged items:
Forward contracts:
Domestic equities

Sold
Total

¥(31)

Note: C alculation method of fair value
Fair value is calculated based on prices obtained from counterparty financial institutions.
¥ millions

Notional amount
As of March 31, 2021

Hedged item

Total

Over one year

Fair value¥8,885¥—¥49

Recognition of valuation gains/losses on hedged items:
Forward contracts:
Domestic equities

Sold

¥49

Total

US$ thousands

Notional amount
As of March 31, 2021

Hedged item

Total

Over one year

Fair value$80,256$—$450

Recognition of valuation gains/losses on hedged items:
Forward contracts:
Sold
Total

Domestic equities$450

Note: C alculation method of fair value
Fair value is calculated based on prices obtained from counterparty financial institutions.

T&D Holdings INTEGRATED REPORT 2021

159

Corporate Data

Note 26

Employees’ Retirement Benefits(1) Overview of the retirement benefit plan adopted by the T&D Insurance Group
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 subsidiaries have defined contribution pension plans as theirdefined 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

US$ thousands

2020

2021

2021

¥157,101¥156,694$1,415,364

Service cost

6,551

6,589

59,518Interest cost

633

621

5,612

Actuarial gains and losses(840)(1,771)(16,001)

Retirement benefit paid

Years ended March 31,

Balance at the beginning of the year

(6,833)(7,308)(66,016)

Accrual of past service costs

83

—

—

Balance at the end of the year

¥156,694¥154,825$1,398,477¥ millions

US$ thousands

Note: Retirement benefit expense for consolidated subsidiaries 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:
Years ended March 31,

Balance at the beginning of the year

2020

2021

2021

¥106,062¥107,538$ 971,356

Expected return on plan assets

903

876

7,918

Net actuarial gains and losses(1,508)1,921

17,360

Employer contribution

7,281

6,433

58,111

Benefit obligation paid

(5,200)(5,858)(52,917)¥107,538¥110,912$1,001,829

Balance at the end of the yearc.	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

2021

2021

Retirement benefit obligations for funded plans¥ 129,894¥ 128,287$ 1,158,773

Plan assets(107,538)(110,912)(1,001,829)[(64,580)][(63,599)][(574,471)]

Employee pension trusts

22,355

17,375

156,944

Retirement benefit obligations for unfunded plans

26,80026,537

239,704

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

49,15643,912396,648

49,15645,764413,370—(1,851)(16,722)¥ 49,156¥ 43,912

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

160

US$ thousands

2020

As of March 31,

T&D Holdings INTEGRATED REPORT 2021$

396,648

d. Components of retirement benefit expense are as follows:¥ millions

Years ended March 31,

Service cost

US$ thousands

2020

2021

2021

¥6,551¥ 6,589$ 59,518

Interest cost

633

621

5,612

Expected return on plan assets

(903)

(876)

(7,918)

Recognized actuarial gains and losses

668(3,693)(33,361)

Recognized past service costs
Retirement benefit expense relating to defined benefit retirement plan

83

—

—

¥7,032¥ 2,640$ 23,850

Note: Retirement benefit expense for consolidated subsidiaries using the simplified method is included in service cost.

e. Matters related to pension plan assets(i) Components of pension plan assets are as follows:
2020

2021

Bonds

71.9%

68.6%

General account

11.9%

11.9%

Foreign securities

8.3%

10.2%

Stocks3.3%

5.5%

Cash and deposits

3.9%

3.1%

Joint assets

0.7%

0.7%

Others

0.0%

0.0%

Total

100.0%

100.0%

As of March 31,

Note: The total includes 60.1% and 57.3% of employee pension trusts set up for corporate pension plans for the fiscal years ended March 31, 2020 and 2021, 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
2020

2021

Discount rate

0.07% – 0.80%

0.13% – 0.80%

Expected long-term rate of return on plan assets

0.10% – 2.13%

0.14% – 1.90%

Years ended March 31,(3) Defined contribution retirement plan
The required contribution for the defined contribution retirement plan of the Company and its consolidated subsidiaries amounted to¥272 million and ¥274 million [$2,479 thousand] for the fiscal years ended March 31, 2020 and 2021, respectively.

T&D Holdings INTEGRATED REPORT 2021

161

Corporate Data

Note 27

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, 2020 and 2021.

(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.

162

T&D Holdings INTEGRATED REPORT 2021

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, 2021, 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

—

—

—

126,300 shares

78,500 shares

95,600 shares

—

—

—

Exercised

38,500 shares

22,000 shares

25,200 shares

Forfeited———

87,800 shares

56,500 shares

70,400 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)

At the end of previous fiscal year

—

—

—

Granted———Forfeited———

Vested———Outstanding

—

—

—

88,200 shares

221,000 shares

159,200 shares

—

—

—

18,500 shares

40,800 shares

25,200 shares

After vesting:
At the end of previous fiscal year
VestedExercisable

Before vesting:After vesting:
At the end of previous fiscal year
VestedExercised
Forfeited
Exercisable

—

—

—

69,700 shares

180,200 shares

134,000 shares

T&D Holdings INTEGRATED REPORT 2021

163

Corporate Data(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

Exercise price
Average stock price at the time of exercise

981 yen981 yen

960 yenFair value at the granted date

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

940 yen

943 yen934 yen

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 28

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 29

US$ thousands

2020

2021

2021

¥2,041¥2,084$18,825

43

44

398

¥2,084¥2,128$19,224

Real 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:
Years ended March 31,¥ millions

US$ thousands

2020

2021

2021

$2,434,220

Balance sheet amount:¥256,235¥269,492

Net increase (decrease)

13,2572,165

19,559Balance at the end of the year

269,492

271,658

2,453,780

Fair value at the end of the year

¥366,328¥371,033$3,351,396

Balance at the beginning of the year

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, 2020 and 2021
include amounts related to asset retirement obligations of ¥50 million and ¥24 million [$222 thousand], respectively.
2. For the year ended March 31, 2020, the increase mainly consisted of purchase of real estate totaling ¥18,933 million and the decrease mainly consisted of depreciation totaling ¥5,409 million.
For the year ended March 31, 2021, the increase mainly consisted of purchase of real estate totaling ¥7,375 million [$66,623 thousand] and the decrease mainly consisted of depreciation totaling ¥5,743
million [$51,880 thousand].
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.

164

T&D Holdings INTEGRATED REPORT 2021

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

US$ thousands

2020

2021

2021

Ordinary revenues¥19,714¥20,784$187,742

Ordinary expenses

12,224

12,588

113,702

Ordinary profit

7,489

8,196

74,039Other gains (losses)

2,674

(145)

(1,316)

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, 2020, other gains were mainly gains on disposal of fixed assets, and these amounts are recorded in extraordinary gains.
For the year ended March 31, 2021, other losses were mainly losses on disposal of fixed assets and impairment losses, and these amounts are recorded in extraordinary losses.

Note 30

Segment Information(1) Overview of reportable segments[Information related to the change in reportable segments]

The reportable segments of the Company are components of the

From this consolidated fiscal year, T&D United Capital Company

Company for which separate financial information is available.

(consolidated) has been added to the reportable segments since

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

T&D United Capital Co., Ltd. acquired equity interest of Fortitude

Board of Directors to determine the allocation of business re-Group Holdings, LLC and included it as an affiliated company

sources and evaluate business performances.

over which the equity method is applied. This change in report-

The Company is an insurance holding company which manages life insurance companies and other subsidiaries in accor-

able segments has no impact on the segment information for theprevious consolidated fiscal year.

dance with the Insurance Business Act. Under the Company, theThree Life Insurance Companies, with unique product strategies(2)	Method for calculating ordinary revenues, income or loss,

and sales strategies, operate life insurance business which isassets and liabilities, and others by reportable segment

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

The method for the accounting treatment of the reportable seg-Companies focuses on different markets. Taiyo Life focuses onments is the same as described in “Note 2. Summary of Significant

the households market, Daido Life focuses on the small andAccounting Policies.”

medium enterprises market and T&D Financial Life focuses on
independent insurance agents market and each company has
different products under its unique marketing strategy.
As a part of diversification of business portfolio, T&D United
Capital was established in 2019 to build up an effective andefficient investment process as a strategic initiative of the Group.
Therefore, the Company’s four reportable segments are the
Taiyo Life Insurance Company segment, the Daido Life Insurance
Company segment, the T&D Financial Life Insurance Company
segment and the T&D United Capital (consolidated) segment.

T&D Holdings INTEGRATED REPORT 2021

165

Corporate Data

(3) Information on ordinary revenues, income or loss, assets and liabilities, and others by reportable segment¥ millions

Reportable segments

Year ended March 31, 2020

T&D
Financial Life

Taiyo Life

Daido Life

¥ 801,020¥1,014,602

1,518

522

—

2,040

68,93070,970(70,970)—

802,538

1,015,124354,495

2,172,158

103,067

2,275,225(77,297)

2,197,928

36,78286,1572,246

125,185

41,846167,032(41,609)125,422

Segment assets

7,660,474

7,037,507

1,645,401

16,343,383

1,122,586

17,465,970(945,832)

16,520,137

Segment liabilities

7,269,351

6,393,649

1,564,466

15,227,468

338,287

15,565,755(168,767)

15,396,987

Depreciation of real estate for rent

3,559

2,618

—

6,177

—

6,177

(28)

6,149

Depreciation

6,896

4,522

454

11,873687

12,561(64)

12,497

Provision for (reversal of) policy reserve

43,419214,759

172,504

430,684308

430,993—430,993

Provision for (reversal of) reserve forpolicyholder dividends

10,197

11,687(0)

21,883—

21,883—

21,883

Interest, dividends and income fromreal estate for rent

Ordinary revenues
Intersegment transfers
Total
Segment income (loss)

OthersSubtotal¥ 354,495 ¥ 2,170,118

¥

Total

34,136 ¥ 2,204,255

Adjustments

Amount on
consolidated
financialstatements¥(6,326) ¥ 2,197,928

Others149,487

143,525

8,274

301,286

42,009343,296(43,532)

299,763Interest expenses

981

12

6

999

799

1,798

(771)

1,027

Equity in earnings (losses) of affiliates

—

—

—

—

—

—

(287)

(287)

Extraordinary gains

3,380

551

—

3,932

106

4,038

—

4,038

Extraordinary losses

4,975

4,254

756

9,986

107

10,093

0

10,093

Impairment losses

803

—

—

803

—

803

—

803

3,692

3,467

756

7,916

—

7,916

—

7,916

9,172

20,315424

29,913426

30,340330,343

900

365

—

1,265

—

1,265

—

1,265

1,092 ¥

34,551855 ¥

35,406(105) ¥

35,300

Provision for reserve for pricefluctuations
Taxes
Investments in affiliated companies
Increase in tangible fixed assets andintangible fixed assets

¥

9,173

¥

24,284¥¥¥

Notes:
1. Ordinary revenues instead of net sales are presented here.
2. Adjustments are as follows:(1) The adjustment of ¥(6,326 million) to ordinary revenues is the transferred amount, which mainly consists of gains from derivatives, net of ¥2,907 million of ordinary revenues and reversal of provision
for retirement benefits of ¥1,820 million of ordinary revenues which are included in ordinary expenses of the consolidated statement of operation as losses from derivatives, net and provision for
retirement benefits, respectively, and provision for reserve for outstanding claims of ordinary expenses of ¥1,885 million of ordinary expenses which is included in ordinary revenues of the consolidated
statement of operation as reversal of reserve for outstanding claims.
(2) The adjustment of ¥(41,609 million) to segment income (loss) is mainly due to the elimination of dividends from subsidiaries and affiliates.
(3) The adjustment of ¥(945,832 million) to segment assets is mainly due to the elimination of investments in stocks of subsidiaries and affiliates.
(4) The adjustment of ¥(168,767 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 profits set forth in the consolidated statement of operation.

166

T&D Holdings INTEGRATED REPORT 2021

¥ millions

Reportable segments

Taiyo Life

Daido Life

T&D
Financial Life¥ 796,107¥1,022,193¥ 460,661

Year ended March 31, 2021

Ordinary revenues
Intersegment transfers
Total

T&D United
Capital(consolidated)

Subtotal¥102,991 ¥ 2,381,953

Others¥Total

36,930 ¥ 2,418,884

Adjustments

Amount on
consolidated
financialstatements¥(4,930) ¥ 2,413,953

1,194

641

—

—

1,835

69,46971,305(71,305)—

797,301

1,022,834

460,661

102,991

2,383,789

106,3992,490,189(76,236)

2,413,953

31,606

95,905(2,947)

101,287

225,852

42,196

268,049(39,917)228,132

Segment assets

8,235,372

7,554,346

1,850,918

190,216

17,830,855

1,091,890

18,922,745(1,045,466)

17,877,278

Segment liabilities

7,708,881

6,701,219

1,782,638

82,565

16,275,304

316,301

16,591,606(267,485)

16,324,121

Depreciation of realestate for rent

3,615

2,942

—

—

6,558

—

6,558

(28)

6,530

Depreciation

6,949

5,064

637

0

12,651

715

13,367(55)

13,311

Provision for (reversal of)policy reserve

46,413

218,464

216,631—481,510415

481,925—

481,925

Provision for (reversal of)reserve for policyholder
dividends

12,574

11,8540—24,429—24,429—24,429Interest, dividends andincome from real estate
for rent

144,708

140,496

7,295

79292,580

40,384

332,964(43,037)

289,927

1,008

12

5

700

1,726

1,265

2,991

(1,437)

1,553
102,914Segment income (loss)

OthersInterest expenses
Equity in earnings(losses) of affiliates

—

—

—

102,850

102,850—

102,85064

Extraordinary gains

1,186

224

—

—

1,411

297

1,708

—

1,708

Extraordinary losses

5,779

7,347

868

—

13,995276

14,27227

14,300

Impairment losses

546

2,368

—

—

2,915

—

2,915

—

2,915

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

¥

3,844

3,659

868

—

8,371

—

8,371

—

8,371

4,156

22,064(1,031)

2,076

27,264634

27,8985

27,903

900

365

—

78,74380,009—80,009—80,009767 ¥22,453(95) ¥

22,357

11,810

¥

8,970

¥

905

¥

— ¥

21,685¥¥

T&D Holdings INTEGRATED REPORT 2021

167

Corporate Data

US$ thousands

Reportable segments

Taiyo Life

Daido Life

T&D
Financial Life

$ 7,190,925$ 9,233,071$ 4,160,976

Year ended March 31, 2021

Ordinary revenues
Intersegment transfers
Total

T&D United
Capital(consolidated)

Subtotal$ 930,282 $ 21,515,255

OthersTotal$ 333,576 $ 21,848,831

Adjustments$

Amount on
consolidated
financialstatements(44,539) $ 21,804,292

10,789

5,790

—

—

16,580627,492

644,073(644,073)—

7,201,715

9,238,861

4,160,976

930,282

21,531,836

961,069

22,492,905(688,612)

21,804,292(360,555)

2,060,630

285,489

866,278(26,619)

914,8892,040,037

381,148

2,421,186

Segment assets

74,386,890

68,235,452

16,718,621

1,718,153

161,059,118

9,862,618

170,921,736(9,443,292) 161,478,444

Segment liabilities

69,631,300

60,529,487

16,101,873

745,782

147,008,444

2,857,030

149,865,474(2,416,093) 147,449,381

Depreciation of realestate for rent

32,661

26,580——59,241—

59,241(254)

58,986

Depreciation

62,76945,742

5,758

5114,274

6,464

120,738(501)

120,237

Provision for (reversal of)policy reserve419,236

1,973,307

1,956,749—

4,349,293

3,750

4,353,043—

4,353,043

Provision for (reversal of)reserve for policyholder
dividends

113,577

107,0755—

220,659—

220,659—

220,659

Interest, dividends andincome from real estate
for rent

1,307,091

1,269,051

65,899720

2,642,761

364,775

3,007,537(388,736)

2,618,800

9,108

112

50

6,323

15,594

11,42627,021(12,986)

14,034
929,584

Segment income (loss)

OthersInterest expenses
Equity in earnings(losses) of affiliates

—

—

—

929,005

929,005—

929,005

578

Extraordinary gains

10,720

2,025

—

—

12,746

2,683

15,430—15,430Extraordinary losses

52,201

66,371

7,845—

126,418

2,501

128,919247

129,166

Impairment losses

4,938

21,397——

26,336—26,336—26,336

Provision for reservefor price fluctuations

34,722

33,0507,845—

75,618—75,618—75,618Taxes

37,539199,295(9,318)18,753

246,2705,729

252,00045

252,045

Investments in affiliatedcompanies

8,134

3,300

—

711,258

722,693—722,693—722,6936,932 $

202,810(863) $

201,946

Increase in tangible fixed
assets and intangible
fixed assets$

106,676$

81,026

$

8,175

$

— $

195,878$$

Notes:
1. Ordinary revenues instead of net sales are presented here.
2. Adjustments are as follows:
The adjustment of ¥(4,930 million) [$(44,539 thousand)] to ordinary revenues is the transferred amount, which mainly consists of gains from derivatives, net of ¥3,287 million [$29,694 thousand] of ordinary revenues and reversal of reserve for outstanding claims of ¥352 million [$3,187 thousand] of ordinary revenues which are included in ordinary expenses of the consolidated statement of operation as
losses from derivatives, net and provision for reserve for outstanding claims, respectively, and provision for defined benefits of ¥1,226 million [$11,082 thousand] of ordinary expenses which is included inordinary expenses of the consolidated statement of operation as reversal of provision for defined benefits.
The adjustment of ¥(39,917 million) [$(360,555 thousand)] to segment income (loss) is mainly due to the elimination of dividends from subsidiaries and affiliates.
The adjustment of ¥(1,045,466 million) [$(9,443,292 thousand)] to segment assets is mainly due to the elimination of investments in stocks of subsidiaries and affiliates.
The adjustment of ¥(267,485 million) [$(2,416,093 thousand)] 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 profits set forth in the consolidated statement of operation.

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T&D Holdings INTEGRATED REPORT 2021

[Related information]
For the year ended March 31, 2020

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

Year ended March 31, 2020

Taiyo Life

Daido Life

T&D Financial Life

Others

Total

Income from insurance premiums¥593,679¥818,070¥335,910¥5,847¥1,753,508

Insurance premiums

593,475

816,488

323,017

5,847

1,738,828

Individual insurance and individual annuities

493,402760,119

322,833—

1,576,355

Group insurance

27,682

20,622——

48,304

Group annuities

71,232

34,633164—

106,030

Others

1,158

1,112

19

5,847

8,137

1,581

¥ 12,893

Ceded reinsurance recoveries

¥

204

¥

¥

—

¥

14,679Note: 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 operation.

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 operation.
For the year ended March 31, 2021

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

Year ended March 31, 2021

Taiyo Life

Daido Life

T&D Financial Life

T&D United Capital(consolidated)

Others

Total

Income from insurance premiums¥619,721¥808,161¥348,020¥—¥7,465¥1,783,369

619,493804,536

331,443—

7,465

1,762,939

Individual insurance andindividual annuities

507,639

749,504

331,292——

1,588,436

Group insurance

27,548

20,168———47,716

Group annuities

83,21233,704132——

117,050

Insurance premiums

1,092

Others¥Ceded reinsurance recoveries

228

¥

1,159

18

—

3,624

¥ 16,577

¥—

7,465
¥

9,735

—

¥

20,429

US$ thousands

Taiyo Life

Daido Life

T&D Financial Life

T&D United Capital(consolidated)

OthersTotal$5,597,701$7,299,803$3,143,536$—$67,430$16,108,472

5,595,640

7,267,066

2,993,799—

67,43015,923,937

4,585,307

6,769,982

2,992,435——

14,347,725

Group insurance

248,835

182,170———431,005

Group annuities

751,630

304,443

1,195

—

—

1,057,268

Year ended March 31, 2021

Income from insurance premiums
Insurance premiums
Individual insurance andindividual annuities

9,866

OthersCeded reinsurance recoveries

$

2,061

$

10,470169—

32,737$ 149,737$—

67,430$—87,937$

184,535

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

T&D Holdings INTEGRATED REPORT 2021

169

Corporate Data

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 operation.

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 operation.

[Information on impairment losses on fixed assets by reportable segment]
For the years ended March 31, 2020 and 2021
Information on impairment losses on fixed assets by reportable segment is disclosed in “Note 30. Segment information.”[Information on amortization of goodwill and unamortized balance of goodwill by reportable segment]
For the years ended March 31, 2020 and 2021: Not applicable.

[Information on gains on negative goodwill by reportable segment]
For the years ended March 31, 2020: Not applicable.
For the years ended March 31, 2021:[Significant gains on negative goodwill]In the T&D United Capital (consolidated) segment, negative goodwill of ¥61,575 million [$556,187 thousand] resulting from the inclusion of Fortitude Group Holdings, LLC in the scope of affiliated companies over which the equity method is applied has been recorded as
equity in earnings of affiliates.

[Related party information]
1. Related party transactions
For the years ended March 31, 2020 and 2021: Not applicable.

2. Notes on the parent company or any important affiliated company
For the years ended March 31, 2020: Not applicable.
For the years ended March 31, 2021:
a. Notes on the parent company: Not applicable.
b. Summarized financial information of important affiliated company
For the consolidated fiscal year ended March 31, 2021, the important affiliated companies were Fortitude Group Holdings, LLC and
Fortitude Reinsurance Company Ltd., a wholly owned subsidiary of Fortitude Group Holdings, LLC, and its summarized consolidated
financial information (main consolidated balance sheet items and consolidated statement of operation items) is as follows.
The consolidated financial statements of the company have been prepared in accordance with U.S. GAAP.
¥ millions

US$ thousands

Fortitude Group Holdings, LLC

Fortitude Group Holdings, LLC

Total assets¥4,872,146$44,008,185

Total liabilities¥4,157,960$37,557,225

Total net assets¥ 714,185$ 6,450,959

Total revenues¥ 513,673$ 4,639,810

Total expenses¥ 400,366$ 3,616,349

Income before income taxes¥ 113,307$ 1,023,460

Profit

¥$89,400807,519

Since T&D United Capital Co., Ltd. acquired equity interest of Fortitude Group Holdings, LLC in the consolidated fiscal year, Fortitude
Group Holdings, LLC and Fortitude Reinsurance Company Ltd. are included in affiliated companies over which the equity method isapplied. Therefore, both companies are considered important affiliated companies from the consolidated fiscal year.

170

T&D Holdings INTEGRATED REPORT 2021

Note 31

Per Share Information¥

US$

Years ended March 31,

2020

2021

2021

Net assets per share¥1,857.77¥2,617.07$23.63

Net income per share

111.31271.552.45

Net income per share (fully diluted)

109.07271.262.45

Note: A summary of the net assets per share, the net income per share and the net income per share (fully diluted) computations is as follows:(1) Net income per share and net income per share (fully diluted)
Years ended March 31,¥ millions

US$ thousands

2020

2021

2021

¥67,103¥162,316$1,466,144

—

—

—

¥67,103¥162,316$1,466,144

Net income per share:
Profit attributable to owners of parent
Amount not attributable to common shareholders
Profit attributable to owners of parent attributable to common shareholders

Shares

Weighted-average number of common stocks outstanding

602,854,887

Years ended March 31,

2020

597,736,297¥ millions

US$ thousands

2021

2021

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

¥(20)

¥(3)

$(31)

Amortization of bond premium (after tax)

¥(20)

¥(3)

$(31)

12,168,016

631,588

SharesIncrease in common stock
Convertible Bond
Subscription rights to shares
Summary of potential shares that are not included in computation of net income per share(fully diluted) due to lack of dilution effect

11,375,701—

792,315

631,588——(2) Net assets per share¥ millions

As of March 31,

Net assets
Deduction from net assets
Subscription rights to shares
Non-controlling interests
Net assets available to common shareholders

US$ thousands

2020

2021

2021

¥1,123,149¥1,553,157$14,029,062

7,208

8,138

73,515

876

689

6,226

6,332

7,449

67,288¥1,115,941¥1,545,018$13,955,547

SharesThe number of common stock outstanding

600,688,559

590,361,894(3) The Company’s shares remaining in the BIP (Board Incentive

deducted in calculation of net income per share and net incomePlan) Trust, which are recorded as treasury shares in sharehold-per share (fully diluted) is 763,295, and the number of treasuryers’ equity, are included in treasury shares to be deducted in theshares to be deducted in calculation of net assets per share is

calculation of the average number of shares during the period

742,900 for the consolidated fiscal year ended March 31, 2021.

for calculation of net income per share and net income per share

Also, for the consolidated fiscal year ended March 31, 2020, the(fully diluted). Also, for the calculation of net assets per share, itaverage number of treasury shares to be deducted in calculation

is included in the number of treasury shares deducted from theof net income per share and net income per share (fully diluted)

total number of outstanding shares at the end of the fiscal year.

was 807,343, and the number of treasury shares to be deducted

Accordingly, the average number of treasury shares to be

in calculation of net assets per share was 798,400.

T&D Holdings INTEGRATED REPORT 2021

171

Corporate Data

Note 32

Significant Subsequent Events[Equity in earnings or losses of affiliates with different closing date]In this consolidated fiscal year, Equity in earnings of affiliates related to Fortitude Group Holdings, LLC (“Fortitude”) use the financial
statements of Fortitude for the consolidated fiscal year (January 1, 2020 to December 31, 2020). Equity in losses of affiliates related toFortitude for the first quarter accounting period (January 1, 2021 to March 31, 2021) of approximately ¥(57,000 million) [$(514,858
thousand)] will be recognized for the first quarter of the next consolidated fiscal year for the Company.
[Purchase of treasury shares]
The Company has resolved at its Board of Directors’ meeting held on May 14, 2021, the acquisition of treasury shares under the provision Article 156 of the Companies Act of Japan, as applied pursuant to Article 165, Paragraph 3 of the same.
a. Reasons for the purchase of treasury shares
To enhance shareholder return and improve capital efficiency.
b. Details of the purchase(i) Type of shares to be purchased: Shares of common stock(ii) Number of shares to be purchased: Up to 14,000,000 shares(iii) Total amount of purchase: Up to ¥10,000 million [$90,326 thousand](iv) Period of purchase: From May 17, 2021, to July 30, 2021(v) Method of purchase: Open-market repurchase by the trust method
c. Results of the purchase(i) Total number of purchased shares: 6,730,400 shares(ii) Total cost of purchase: ¥9,999 million [$90,317 thousand](iii) Period of purchase: From May 17, 2021 to June 8, 2021 on the basis of execution date
[Borrowing of a large amount of fund]
Based on the resolution made at the Board of Directors’ meeting held on May 31, 2021, the Company plans to enter into a subordinated syndicated loan agreement (“the subordinated loan”) of up to ¥13.5 billion [$121,940 thousand] on June 23, 2021 and execute theborrowing on June 28, 2021.
a. Amount of borrowing: Up to ¥13.5 billion [$121,940 thousand]b. Date of agreement: June 23, 2021 (to be scheduled)c. Borrowing date: June 28, 2021 (to be scheduled)d. Repayment date: June 28, 2051 (to be scheduled, 30 years after the date of borrowing execution)e. Date of the first enabled prepayment: June 28, 2031 (to be scheduled, 10 years after the date of borrowing execution)f.

Applicable interest rate: Base interest rate +spread (floating interest rate)
After the first prepayment date, 1.00% is added to the initial spread.

g.	Use of the funds: Sub-loan funds to T&D United Capital Co., Ltd., a subsidiary of the Company (The funds are limited to T&D United
Capital’s additional investment, etc. in Fortitude Group Holdings, LLC and T&D United Capital’s working capital.)h.	Voluntary suspension of interest payment: Payment of all or part of the subordinated loan can be deferred at the Company’s discretion.
i.	Subordination covenant: The subordinated loan is subordinated in liquidation proceedings, bankruptcy proceedings, corporate reorganization proceedings and civil rehabilitation proceedings, or similar proceedings in foreign countries. Each article of the contract
related to the subordinated loan must not be amended if the creditors of the senior debt suffer disadvantages in any way.
j.

Arranger: MUFG Bank, Ltd.

k. Agent: MUFG Bank, Ltd.
l.

172

Participating financial institutions: Not determined yet

T&D Holdings INTEGRATED REPORT 2021

Independent Auditor’s Report

T&D Holdings INTEGRATED REPORT 2021

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Corporate Data

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T&D Holdings INTEGRATED REPORT 2021

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Corporate Data

176

T&D Holdings INTEGRATED REPORT 2021

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Corporate Data

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T&D Holdings INTEGRATED REPORT 2021

Stock Information
As of March 31, 2021

BASIC INFORMATION
Stock Exchange Listings
Industry and Security Code
Trading Unit
Number of Shares of Common Stock
Fiscal Year-End
Ordinary General Meeting of Shareholders
Date of Record
Public NoticeTransfer Agent
Number of Shareholders

Tokyo Stock Exchange
Insurance, 8795
100 shares
Authorized: 1,932,000,000
Issued: 633,000,000
March 31 every year
June every year
Ordinary General Meeting of Shareholders March 31 every year
Dividends March 31 every year (interim dividend, when paid, on September 30)• Electronic public notice (Japanese only)• URL: https://www.td-holdings.co.jp/information/public.html/• If the Company is unable to issue an electronic public notice due to an accident or any other unavoidable
reason, a public notice will be issued in the Nihon Keizai Shimbun (daily newspaper).
Mitsubishi UFJ Trust and Banking Corporation
4-5, Marunouchi 1-Chome, Chiyoda-ku, Tokyo, Japan
URL: https://www.tr.mufg.jp/english/
219,229

PRINCIPAL SHAREHOLDERS
Name of Shareholders

Number of Shares Held (Thousands of shares)

Percentage of Total Shares Outstanding (%)

57,85230,274
16,950
10,325
9,041
8,656
8,634
8,012
7,419
7,190

9.79
5.12
2.87
1.75
1.53
1.46
1.46
1.36
1.26
1.22

The Master Trust Bank of Japan Ltd. (Trust Account)
Custody Bank of Japan, Ltd. (Trust Account)
Custody Bank of Japan, Ltd. (Trust Account7)
MUFG Bank, Ltd.
Custody Bank of Japan, Ltd. (Trust Account5)
JPMorgan Securities Japan Co., Ltd.
STATE STREET BANK WEST CLIENT – TREATY 505234
Custody Bank of Japan, Ltd. (Trust Account6)
SSBTC CLIENT OMNIBUS ACCOUNT
Custody Bank of Japan, Ltd. (Trust Account1)

Note: In addition to the above, the Company holds 41,895 thousands of shares in treasury shares, which are excluded from the principal shareholders stated above.
Further, the percentage of total shares outstanding is calculated after deducting the treasury shares.

COMPOSITION OF SHAREHOLDERS AND SHARES
Proportion of Shares Held (%)

Composition of Shareholders (%)

Regional Distribution of Shares Held (%)

Non-life Insurance
Companies
Asia-Pacific

Banks
Financial Instruments
Business Operators
Individuals andOthersU.S.

Foreign
Corporations,
etc.

Other
Corporations

Europe (including British
Overseas Territories), theMiddle East and Africa

Individuals andOthers

Other
Corporations

Japan

Trust Banks

Foreign Corporations, etc.
Trust Banks
Other Corporations
Individuals and Others
Financial Instruments Business Operators
Banks
Non-life Insurance Companies
Other Financial Institutions
Life Insurance Companies
Government and Local Public Bodies

32.79
26.50
16.95
12.97
5.54
3.43
1.44
0.22
0.16
0.00

Individuals and Others
Other Corporations
Foreign Corporations, etc.
Financial Instruments Business Operators
Trust Banks
Other Financial Institutions
Banks
Life Insurance Companies
Non-life Insurance Companies
Government and Local Public Bodies

65.98
33.60
0.36
0.02
0.01
0.01
0.01
0.01
0.00
0.00

Japan
Europe (including British Overseas
Territories), the Middle East and Africa
U.S.
Asia-Pacific
Others

67.21
18.93
12.41
1.46
0.00

T&D Holdings INTEGRATED REPORT 2021

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Corporate Data

Group Companies
As of July 1, 2021

The T&D Insurance Group comprised the holding company, 19 consolidated subsidiaries, and 6 affiliated companies as ofJuly 1, 2021. Centered on the life insurance business, the T&D Insurance Group’s operations are outlined below:

Insurance & Insurance-related
Businesses

Investment-related Businesses[9 companies][11 companies]
Investment Management andAdvisory, etc.

Insurance	Taiyo Life Insurance Company(Life insurance business)	Daido Life Insurance Company(Life insurance business)	T&D Financial Life Insurance Company(Life insurance business)
	Pet & Family Insurance Co., Ltd.
(Nonlife insurance Business)	T&D Asset Management Co., Ltd.
(Investment advisory and investment
trust services)

Other Investment-related
	T&D United Capital Co., Ltd.
(Principal investment, Investment
management [administration])	Capital Taiyo Life Insurance Limited(Life insurance Business)	T&D United Capital North America Inc.
(Principal investment, Investment
management [administration])	Fortitude Group Holdings, LLC(Insurance holding company)

	T&D Lease Co., Ltd. (Leasing)	Fortitude Reinsurance Company Ltd.
(Reinsurance business)

Insurance-related
	T&D Confirm Ltd.
(Policyholder confirmation services)	Taiyo Credit Guarantee Co., Ltd.
(Credit guarantee services)	Alternative Investment Capital Ltd.
(Investment in private equity funds)	Other subsidiaries and affiliated companies, etc.: 3 companies	Toyo Insurance Agency Co., Ltd.
(Insurance agent)

Administration-related
Businesses[5 companies]

Administration-related
	T&D Customer Services Co., Ltd.
(Life insurance policy clerical services,
including drafting, amendment, custody and distribution of documents, anddelivery of securities)

General Affairs andCalculation-related	T&D Information Systems, Ltd.
(Computer software and systemservices)	Nihon System Shuno, Inc.
(Premium collection)	Zenkoku Business Center Co., Ltd.
(Premium collection)
	Thuriya Ace Technology Company
Limited(Designing and developing information technology, information technology systems, software solutions andbusiness solutions for the insurance
industry)	Daido Management Service Co., Ltd.
(Insurance agent)	Taiyo Life Aging Society Institute(Survey and research on health andmedical care)

Companies marked by180

are consolidated subsidiaries, and companies marked by

T&D Holdings INTEGRATED REPORT 2021

are affiliated companies accounted for by the equity method.

Corporate Overview
As of March 31, 2021

Company Name

T&D Holdings, Inc.

Date of Establishment

April 1, 2004

Location of Headquarters

2-7-1, Nihonbashi, Chuo-ku, Tokyo 103-6031, Japan
Tel: +81-(0)3-3272-6110 Fax: +81-(0)3-3272-6552

Type of Business

Management control of life insurance subsidiaries under the Insurance BusinessAct of Japan and other laws and regulations, and other businesses associated with the above

Paid-in Capital

207,111.86 million yen

Security Code8795

Stock Exchange Listings

Tokyo Stock Exchange (First Section)

Number of Common
Stocks Issued

633,000,000 shares

Number of Employees

118

Organizational Structure
As of April 1, 2021

Shareholders’ Meeting
Nomination and Compensation Committee

Audit and Supervisory Board

Board of Directors

Group Compliance Committee

Audit andSupervisory Board OfficeGroup SDGs Committee
Group ERM Committee
President
Executive Management Board

Group Strategy Board

Group Risk Management Committee

Group Planning
Department• Group planning• IR

Group ERM Strategy
Department• ERM

Group Management Promotion Committee

Business Development
Department• New businessGroup Finance &Accounting Department• Finance & capitalmanagement• Accounting

Social Communication
Department• PR• Sustainability

General Affairs
Department• General affairs• Stock
administration• Internal control• Personnel• Secretary

Risk Management
Department

Internal Auditing
Department• Group risk
management• Compliance• Legal affairs• Internal
auditing

Websites
For more detailed information on the contents of this report, please see the Company’s websites.
Website of T&D Holdings, Inc.
https://www.td-holdings.co.jp/en/

Investor Relations
https://www.td-holdings.co.jp/en/ir/

Sutainability
https://www.td-holdings.co.jp/en/csr/

T&D Holdings INTEGRATED REPORT 2021

181