February 12, 2021

Financial Results for the Nine Months Ended December 31, 2020
Asahi Mutual Life Insurance Company (the “Company”; President: Hiroki Kimura)announces financial results for the nine months ended December 31, 2020.

［Contents］

１．Business Highlights

･････

Ｐ１

２．Investment Results of General Account Assets

･････

Ｐ３

３．Unaudited Non-consolidated Balance Sheets

･････

Ｐ６

４．Unaudited Non-consolidated Statements of Income

･････

Ｐ７

５．Breakdown of Ordinary Profit (Fundamental Profit)･････ Ｐ１０

６．Solvency Margin Ratio･････ Ｐ１１

７．Status of Separate Account･････ Ｐ１２

８．Status of the Company, Subsidiaries and Affiliates･････ Ｐ１３

Asahi Mutual Life Insurance Company

1．Business Highlights(1) Sum Insured of Policies in Force and New Policies(ⅰ) Policies in Force
As of March 31, 2020
Number of policies(Thousands)

As of December 31, 2020
Number of policies

Amount(100 millions of Yen)

AmountChanges(100 millions
Changes(Thousands)(%, Pre-FYE)
of Yen)(%, Pre-FYE)

Individual insurance

7,269

142,238

7,325

100.8

134,718

94.7

Individual annuities

531

21,936513

96.6

20,91995.4

Group insurance－

14,536－－

14,604100.5

Group annuities

－

162

－

－

156

96.4

Notes:
1. Policy amounts for individual annuities are equal to (a) the funds to be held at the time annuity payments are to commence
for an annuity for which annuity payments have not yet commenced and (b) the amount of policy reserves for an annuity forwhich payments have commenced.
2. Policy amount in force for group annuities is equal to the amount of outstanding policy reserves.
3. Number of policies includes number of each unit with regard to "Hoken-ou", "Hoken-ou Plus", etc.

(ⅱ) New Policies
Nine months ended December 31, 2019
Amount (100 millions of Yen)

Number of policies

New
policies(Thousands)

Net increase by
conversion

Individual insurance

549

1,303

2,316

(1,013)

Individual annuities

－

(124)

－

(124)

Group insurance

－

72

72

－

Group annuities

－

－

－

－

Nine months ended December 31, 2020
Amount (100 millions of Yen)

Number ofpolicies(Thousands)

Changes(%, YoY)

Individual insurance

556

101.4

Individual annuities－

Group insuranceGroup annuities

Changes(%, YoY)

New
policies

1,326

101.8

2,285

(959)

－

(86)

－

－

(86)

－

－

282

390.2

282

－

－

－

－

－

－

－

Net increase by
conversion

Notes:
1. Number of new policies is the sum of new policies and policies after conversion.
2. Amount of new policies for individual annuities, both new policies and net increase by conversion, is equal to the funds tobe held at the time annuity payments are to commence.
3. Number of policies includes number of each unit with regard to "Hoken-ou", "Hoken-ou Plus", etc.

1Asahi Mutual Life Insurance Company

(2) Annualized Premiums(ⅰ) Policies in Force(100 millions of Yen）

As of December 31, 2020
As of March 31, 2020

Changes(%, Pre-FYE)

Individual insurance

3,916

3,893

99.4

Individual annuities

1,391

1,344

96.6

Total

5,307

5,237

98.7

2,157

2,197

101.8

Third-sector products(ⅱ) New Policies(100 millions of Yen）

Nine months ended

Nine months ended

December 31, 2019

December 31, 2020

Changes(%, YoY)

Individual insurance

193

190

98.8

Individual annuities

(2)

(1)

－

Total

190

189

99.1

157

156

99.3

Third-sector products

Notes:
1. Annualized premiums are calculated by multiplying factors according to the premium payment method (for single premium
contracts, the amount is calculated by dividing the premium by the coverage period).
2. Figures for third-sector products represent portion of annualized premiums corresponding to the medical benefits(hospitalization benefits, surgery benefits, etc.), living benefits (specific illness benefits, nursing care benefits, etc.) andwaiver benefits (excluding disability benefits, but including specific illness benefits and nursing care benefits).

2

Asahi Mutual Life Insurance Company

２．Investment Results of General Account Assets(1) Asset Composition(Millions of Yen)
As of March 31, 2020
AmountAs of December 31, 2020

Percentage

AmountPercentage

Cash, deposits, call loans

109,934

2.0

118,759

2.2

Monetary claims bought

26,9150.5

25,6190.5

4,353,404

81.2

4,514,636

83.1

Domestic bonds

2,722,203

50.7

2,726,672

50.2

Domestic stocks

282,473

5.3

369,084

6.8

Foreign securities

1,285,061

24.0

1,337,621

24.6

Foreign bonds

1,063,892

19.8

1,040,530

19.2

221,169

4.1

297,090

5.5

63,666

1.2

81,2581.5

377,9137.0

310,141

5.7

Policy loans

40,5530.8

36,2420.7

Industrial and consumer loans

337,359

6.3

273,899

5.0

377,8717.0

376,778

6.9

8,044

0.1

－

－

110,5772.1

85,048

1.6

(391)

(0.0)

(323)

(0.0)

5,364,268

100.0

5,430,660

100.0

1,394,173

26.0

1,430,269

26.3

Securities

Foreign stocks and other foreign securities
Other securities
Loans

Real estate
Deferred tax assets
OthersAllowance for possible loan losses
Total
Foreign currency-denominated assets

Note: Real estate is the sum of land, buildings and construction in progress.

3

Asahi Mutual Life Insurance Company

(2) Fair Value Information on Securities (with fair value, other than trading securities)(Millions of Yen)
As of March 31, 2020
Book value Fair value

As of December 31, 2020

Gains/losses
Gains

Held-to-maturity debt securities

Gains/losses

Losses

Gains

Losses373,755

39,28839,294(5)

323,884

365,522

41,63741,645(7)

Policy-reserve-matching bonds 2,050,330 2,353,584

303,254304,294(1,040)2,055,372

2,292,498

237,126

245,312(8,186)

Stocks of subsidiaries
Available-for-sale securities
Domestic bonds

334,467

Book value Fair value

－

－

－

－

－

－

－

－

－

－

1,845,623

1,975,488

129,864

192,293(62,429)

1,887,599

2,135,660

248,061

291,721(43,660)

507,110

518,502

11,392

15,757(4,364)507,122527,068

19,94622,487(2,541)

Domestic stocks

169,376

262,450

93,073

116,456(23,382)

173,063343,755

170,692

189,497(18,805)

Foreign securities

1,093,700

1,129,950

36,24959,561(23,312)

1,126,164

1,182,611

56,44676,478(20,031)

Foreign bonds

862,807

908,792

45,98458,080(12,095)

826,567

885,530

58,963

68,462(9,499)Foreign stocks andother foreign securities

230,892

221,157(9,735)

1,481(11,216)

299,597

297,081(2,516)

8,016(10,532)

74,59563,666(10,929)439(11,369)

80,34881,258910

3,192(2,281)

Monetary claims bought

840

918

78

78

－

900

966

65

65

－

Negotiable certificates of deposit

－

－

－

－

－

－

－

－

－

－

Others

－

－

－

－

－

－

－

－

－

－

Total

4,230,421

4,702,828

472,407535,882(63,475)

4,266,856

4,793,681

526,825

578,679(51,853)

Domestic bonds

2,710,810

3,033,735

322,924

328,335(5,411)

2,706,726

2,971,177

264,451

275,186(10,734)

Other securities

Domestic stocks

169,376

262,450

93,073

116,456(23,382)

173,063343,755

170,692

189,497(18,805)

Foreign securities

1,248,800

1,313,179

64,37887,691(23,312)

1,281,164

1,369,326

88,161

108,193(20,031)

Foreign bonds

1,017,907

1,092,021

74,114

86,209(12,095)

981,567

1,072,244

90,677100,176(9,499)230,892

221,157(9,735)

1,481(11,216)

299,597

297,081(2,516)

8,016(10,532)

Other securities

74,59563,666(10,929)439(11,369)

80,34881,258910

3,192(2,281)

Monetary claims bought

26,837

29,796

2,959

2,959

－

25,554

28,164

2,610

2,610

－

Negotiable certificates of deposit

－

－

－

－

－

－

－

－

－

－

Others

－

－

－

－

－

－

－

－

－

－

Foreign stocks andother foreign securities

Note: The table above includes assets which are considered appropriate to deem as securities under the Financial Instruments and Exchange Act.

* Book value of securities without fair value is as follows:(Millions of Yen)

As of March 31, 2020 As of December 31, 2020
Held-to-maturity debt securities－－

Unlisted foreign bonds－－

Others－－－－Stocks of subsidiaries

6,694

12,094

Available-for-sale securities

13,34013,245

13,327

13,234

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

12

11

Unlisted foreign bonds－－

Policy-reserve-matching bonds

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

Others
Total

4

－

－

20,03525,340Asahi Mutual Life Insurance Company

（Reference）
The table below shows the sum of securities with fair value and without fair value (in case that securities without fair value areforeign currency-denominated, the fair value is calculated as the sum of book value and net unrealized gains (losses) on foreignexchange valuation).
(Millions of Yen)
As of March 31, 2020
Book value Fair value

As of December 31, 2020

Gains/losses
Gains

Held-to-maturity debt securities

Gains/losses

Losses

Gains

Losses373,755

39,28839,294(5)

323,884

365,522

41,63741,645(7)

Policy-reserve-matching bonds 2,050,330 2,353,584

303,254304,294(1,040)2,055,372

2,292,498

237,126

245,312(8,186)

Stocks of subsidiaries
Available-for-sale securities
Domestic bonds

334,467

Book value Fair value

6,694

6,694

－

－

－

12,094

12,094－－－

1,858,964

1,988,827

129,863

192,293(62,430)

1,900,845

2,148,904

248,059

291,721(43,662)

507,110

518,502

11,392

15,757(4,364)507,122527,068

19,94622,487(2,541)

Domestic stocks

182,704

275,778

93,073

116,456(23,382)

186,297356,989

170,692

189,497(18,805)

Foreign securities

1,093,713

1,129,961

36,24859,561(23,313)

1,126,175

1,182,621

56,44576,478(20,033)

Foreign bonds

862,807

908,792

45,98458,080(12,095)

826,567

885,530

58,963

68,462(9,499)Foreign stocks andother foreign securities

230,905

221,169(9,736)

1,481(11,218)

299,608

297,090(2,517)

8,016(10,534)

74,59563,666(10,929)439(11,369)

80,34881,258910

3,192(2,281)

Monetary claims bought

840

918

78

78

－

900

966

65

65

－

Negotiable certificates of deposit

－

－

－

－

－

－

－

－

－

－

Others

－

－

－

－

－

－

－

－

－

－

Total

4,250,456

4,722,862

472,406

535,882(63,476)

4,292,196

4,819,020

526,823

578,679(51,855)

Domestic bonds

2,710,810

3,033,735

322,924

328,335(5,411)

2,706,726

2,971,177

264,451

275,186(10,734)

Other securities

Domestic stocks

189,399

282,473

93,073

116,456(23,382)

198,392

369,084

170,692

189,497(18,805)

Foreign securities

1,248,813

1,313,190

64,377

87,691(23,313)

1,281,175

1,369,335

88,159108,193(20,033)

Foreign bonds

1,017,907

1,092,021

74,114

86,209(12,095)

981,567

1,072,244

90,677100,176(9,499)230,905

221,169(9,736)

1,481(11,218)

299,608

297,090(2,517)

8,016(10,534)

Other securities

74,59563,666(10,929)439(11,369)

80,34881,258910

3,192(2,281)

Monetary claims bought

26,837

29,796

2,959

2,959

－

25,554

28,164

2,610

2,610

－

Negotiable certificates of deposit

－

－

－

－

－

－

－

－

－

－

Others

－

－

－

－

－

－

－

－

－

－

Foreign stocks andother foreign securities

Note: The table above includes assets which are considered appropriate to deem as securities under the Financial Instruments and Exchange Act.

(3) Fair Value Information on Money Held in Trust
The Company doesn't hold money held in trust.

5

Asahi Mutual Life Insurance Company

３．Unaudited Non-consolidated Balance Sheets(Millions of Yen)

As of March 31, 2020
Assets:Cash and deposits
Call loans
Monetary claims bought
Securities:
National government bonds
Local government bonds
Corporate bonds
Domestic stocks
Foreign securities
Loans:
Policy loans
Industrial and consumer loans
Tangible fixed assets
Intangible fixed assets
Agency accounts receivable
Reinsurance receivables
Other assets
Prepaid pension cost
Deferred tax assets
Customers' liabilities under acceptances and guarantees
Allowance for possible loan losses
Total assets

30,55482,00026,915
4,373,776
1,728,003
54,671
945,309288,114
1,294,012
377,91340,553
337,359
382,722
25,54111446
80,937
179
8,044
3
(391)
5,388,655

As of December 31, 2020
36,86683,00025,6194,540,298
1,679,815
49,3981,003,616
377,377
1,348,832
310,141
36,242
273,899
381,492
25,40711
748
54,208
106
－
1
(323)
5,457,580(Millions of Yen)

As of March 31, 2020
Liabilities:
Policy reserves and other reserves:
Reserve for outstanding claims
Policy reserves
Reserve for dividends to policyholders
Reinsurance payables
Bonds payable
Other liabilities:
Income taxes payable
Lease obligations
Asset retirement obligations
OthersReserve for employees' retirement benefits
Reserve for price fluctuation
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Acceptances and guarantees
Total liabilities
Net assets:
Foundation funds
Reserve for redemption of foundation funds
Reserve for revaluation
Surplus:Reserve for future losses
Other surplus:
Reserve for fund redemption
Equalized reserve for dividends to policyholders
Unappropriated surplus (loss)
Total foundation funds and others
Net unrealized gains (losses) on available-for-sale securities, net of tax
Land revaluation differences
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

6

As of December 31, 2020

4,529,448
29,3784,467,997
32,073563
88,295286,199
4,121
1,963
263
279,849
32,533
43,230－16,8383
4,997,112

4,481,977
27,362
4,423,254
31,361291
88,295
274,728
2,255
1,647
853
269,971
31,70445,01020,311
16,811
1
4,959,133

91,000166,000
281
81,819310
81,50935,3007,318
38,890339,100
97,625(45,183)
52,442391,5435,388,655

91,000166,000
281
98,953328
98,62544,4007,091
47,134356,235
187,465(45,254)
142,211498,447
5,457,580

Asahi Mutual Life Insurance Company

４．Unaudited Non-consolidated Statements of Income(Millions of Yen)

Ordinary income:Premium and other income:Insurance premiums
Investment income:Interest, dividends and other income
Gains on sales of securities
Investment gains on separate accounts
Other ordinary income
Ordinary expenses:
Claims and other payments:
ClaimsAnnuities
Benefits
Surrender benefits
Other payments
Provision for policy reserves and other reserves:
Provision for interest on policyholders' dividend reserves
Investment expenses:
Interest expenses
Losses on trading securities
Losses on sales of securities
Losses on valuation of securities
Losses on derivative financial instruments
Operating expenses
Other ordinary expenses
Ordinary profit
Extraordinary gains:
Gains on disposal of fixed assets
Other extraordinary gains
Extraordinary losses:
Losses on disposal of fixed assets
Impairment losses
Provision for reserve for price fluctuation
Losses on reduction entry of real estate
Other extraordinary losses
Surplus before income taxes
Income taxes including deferred taxes
Total income taxes
Net surplus

7

Nine months ended

Nine months ended

December 31, 2019

December 31, 2020

466,932
293,292
291,720
109,474454,225
291,082
289,334
106,693

79,292

84,88522,82912,468

1,844

3,930

64,165439,973
305,11056,449421,055
288,623

86,55884,01095,86592,45452,491

50,347

66,18757,721

2,817

2,519

2
2
30,4942
2
25,328

3,396

3,253

－

485

780

2,430

70

19

13,2506,500

79,311

81,42425,05525,676

26,95856

33,170
216

56

98

－

117

2,161

3,428

270

311

121

118

1,770

1,780

－

5

－

1,213

24,85329,957

5,254

7,018

5,254

7,018

19,59822,939Asahi Mutual Life Insurance Company

Notes to Unaudited Non-consolidated Financial Statements
Notes to Unaudited Non-consolidated Balance Sheet
1. Securities Lent under Lending Agreements
The amount of securities lent under lending agreements was ¥281,675 million as of December 31,
2020.

2. Reserve for Dividends to Policyholders
The change in reserve for dividends to policyholders for the reporting period ended December 31,
2020 was as follows:

Millions of Yen
Nine months ended
December 31, 2020
Balance at the beginning of the reporting period¥
Transfer to reserve from surplus in the previous fiscal year
Dividends to policyholders paid out during the reporting period
Increase in interest
Balance at the end of the reporting period¥

32,073
1,794
2,508
2
31,361

3. Issuance of U.S. Dollar-Denominated Perpetual Subordinated Bonds
The Company issued U.S. dollar-denominated step-up callable perpetual subordinated bonds (the“Bonds”) on January 27, 2021.
Summary terms of the Bonds are as follows:(1) Type: U.S. dollar-denominated step-up callable perpetual subordinated bonds with interest
deferral options(2) Issue price: 100% of principal amount(3) Principal amount: USD 380 million(4) Interest rate: Fixed rate of interest of 4.1% per annum until January, 2031 and a fixed rate
reset with step-up thereafter (reset every 5 years).
(5) Maturity: None (perpetual). The Bonds are callable on each interest payment date on or afterJanuary, 2031 at the discretion of the Company, subject to prior approval by the regulatory
authority, etc.
(6) Collateral and guarantee: The Bonds have no collateral and guarantee and there are no assets
especially retained for the reimbursement of the Bonds.
(7) Use of proceeds: The Company intends to use the net proceeds from the Bonds for general
corporate purposes, and/or towards the repayment of the U.S. dollar-denominated perpetual
subordinated bonds issued in 2017 subject to regulatory and other approvals.
The Company applies designated hedge accounting (“Furiate-shori”) for currency swap for theBonds.

8

Asahi Mutual Life Insurance Company

Note to Unaudited Non-consolidated Statement of Income
Extraordinary Losses
The expenses related to salary guarantees for sales representatives and others ascountermeasures to prevent the spread of COVID-19 for the reporting period ended December 31,
2020 were ¥1,091 million, which were included in extraordinary losses.

9

Asahi Mutual Life Insurance Company

５．Breakdown of Ordinary Profit (Fundamental Profit)(Millions of Yen)

Nine months ended
December 31, 2019

Nine months ended
December 31, 2020

20,037

31,627

22,82912,468

Gains on money held in trust－－

Gains on trading securities－－

Gains on sales of securities

22,82912,468

Gains on derivative financial instruments－－

Foreign exchange gains－－

Other capital gains－－

15,49810,449Losses on money held in trust－－

Losses on trading securities－

485

Losses on sales of securities

780

2,430

Losses on valuation of securities

70

19

Losses on derivative financial instruments

13,2506,500

Foreign exchange losses

1,397

1,012

－

－

Ｂ

7,330

2,019

Ａ＋Ｂ

27,36833,646

Other one-time gains

40

49

Reinsurance revenue－－

Reversal of contingency reserve－－

Reversal of specific allowance for possible loan losses

40

49

Others

－

－

450

525

Reinsurance premiums－－

Provision for contingency reserve

450

525

Provision for specific allowance for possible loan losses－－

Provision for allowance for specified overseas loans－－

Write-offs of loans00Others

－

－

Ｃ

(409)

(476)

Ａ＋Ｂ＋Ｃ

26,95833,170Fundamental profit

Ａ

Capital gains

Capital losses

Other capital losses
Net capital gains (losses)
Fundamental profit plus net capital gains (losses)

Other one-time losses

Net other one-time gains (losses)
Ordinary profit

10

Asahi Mutual Life Insurance Company

６．Solvency Margin Ratio(Millions of Yen)

As of March 31, 2020 As of December 31, 2020

860,443

987,294

Foundation funds and surplus

333,225

351,822

Reserve for price fluctuation

43,23045,010Contingency reserve

51,78252,30746

22(Net unrealized gains on available-for-sale securities (before tax effect) anddeferred hedge gains (before tax effect)) × 90% (in case of losses： × 100%)

116,876

223,253

Net unrealized gains on land × 85%(in case of losses： × 100%)

27,786

27,698

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

137,190

140,214

Qualifying subordinated debt

138,095

127,695

Excess amount of policy reserves based on full-time Zillmer method and qualifying
subordinated debt excluded from the calculation of solvency margin－－

Deduction－－

12,211

19,270

182,513

199,658

Total solvency margin（Ａ）

General allowance for possible loan losses

OthersTotal amount of risk

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

2

（Ｂ）

Insurance risk

R1

13,155

12,732

Third-sector insurance risk

R8

9,974

10,316

Risk of assumed yield

R2

72,24670,072

Minimum guarantee risk

R7

1,055

1,048

Investment risk

R3103,703

122,832

Operational risk

R4

4,002

4,340

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

942.8%

988.9%

Notes:
1. The figures above are calculated based on Articles 86 and 87 of the Ordinance for Enforcement of the Insurance Business Act and the
Public Notice No. 50 of the Ministry of Finance of 1996.
2. "Excess amount of policy reserves based on full-time Zillmer method", "Qualifying subordinated debt" and "Excess amount of policy
reserves based on full-time Zillmer method and qualifying subordinated debt excluded from the calculation of solvency margin" arecalculated based on the Public Notice No.25 of the Financial Services Agency of 2011.
3. "Minimum guarantee risk" is calculated by standard method.

11

Asahi Mutual Life Insurance Company

７．Status of Separate Account(1) Separate Account Assets by Products(Millions of Yen)

As of March 31, 2020

As of December 31, 2020

Individual variable insurance

24,381

26,863

Individual variable annuities－－

Group annuity products－－

24,381

26,863Total(2) Sum Insured of Policies in Force(i) Individual Variable Insurance
As of March 31, 2020

Individual variable insurance(fixed term)
Individual variable insurance(whole life)
Total

As of December 31, 2020

Number of policies(Thousands)

Amount(Millions of Yen)

Number of policies(Thousands)

Amount(Millions of Yen)

－

－

－

－

13

92,623

13

90,596

13

92,623

13

90,596(ii) Individual Variable Annuities
As of March 31, 2020

As of December 31, 2020

Number of policies(Thousands)

Amount(Millions of Yen)

Number of policies(Thousands)

Amount(Millions of Yen)

Individual variable annuities

－

－

－

－

Total

－

－

－

－

12

Asahi Mutual Life Insurance Company

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

Nine months ended
December 31, 2019

Nine months ended
December 31, 2020

Ordinary income

470,094456,363

Ordinary profit

26,84331,560Net surplus attributable to the Parent Company

19,52921,311

Comprehensive income

70,783111,260(Millions of Yen)

As of March 31, 2020

As of December 31, 2020

5,390,941

5,456,806

948.7%

1,001.6%

Total assets
Solvency margin ratio(2) Scope of Consolidation and Application of Equity Method
Number of consolidated subsidiaries： 4
Changes in important subsidiaries during the reporting period ended December 31, 2020
Asahi NewCo Preparatory Co., Ltd. was newly included in scope of consolidation.
Unconsolidated subsidiaries are immaterial in terms of their impact on consolidated net income and surplus, andalso immaterial as a whole, therefore, the equity method is not applied.

13

Asahi Mutual Life Insurance Company

(3) Unaudited Consolidated Balance Sheets(Millions of Yen)
As of March 31, 2020
Assets:Cash and deposits
Call loans
Monetary claims bought
Securities
Loans
Tangible fixed assets
Intangible fixed assets
Agency accounts receivable
Reinsurance receivables
Other assets
Net defined benefit assets
Deferred tax assets
Customers' liabilities under acceptances and guarantees
Allowance for possible loan losses
Total assets

35,22782,00026,915
4,369,302
377,913382,776
24,73111446
82,963
178
8,863
3
(391)
5,390,941

As of December 31, 2020

42,26883,00025,6194,530,425
310,141
381,555
26,927
11
748
56,148
67
213
1
(323)
5,456,806(Millions of Yen)

As of March 31, 2020
Liabilities:
Policy reserves and other reserves:
Reserve for outstanding claims
Policy reserves
Reserve for dividends to policyholders
Reinsurance payables
Bonds payable
Other liabilities
Net defined benefit liabilities
Reserve for price fluctuation
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Acceptances and guarantees
Total liabilities
Net assets:
Foundation funds
Reserve for redemption of foundation funds
Reserve for revaluation
Consolidated surplus
Total foundation funds and others
Net unrealized gains (losses) on available-for-sale securities,
net of tax
Land revaluation differences
Accumulated remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

14

As of December 31, 2020

4,529,448
29,3784,467,997
32,073563
88,295
288,156
34,98543,230－16,83835,001,521

4,481,977
27,362
4,423,254
31,361291
88,295275,983
34,03045,01019,63816,811
1
4,962,040

91,000166,000
281
81,429338,71191,000166,000
281
96,934354,216

97,625

187,465(45,183)(1,814)50,627
81
389,420
5,390,941(45,254)(1,731)
140,48068
494,765
5,456,806

Asahi Mutual Life Insurance Company

(4) Unaudited Consolidated Statements of Income and Statements of Comprehensive Income【Unaudited Consolidated Statements of Income】

Ordinary income:Premium and other income
Investment income:Interest, dividends and other income
Gains on sales of securities
Investment gains on separate accounts
Other ordinary income
Ordinary expenses:
Claims and other payments:
ClaimsAnnuities
Benefits
Surrender benefits
Other payments
Provision for policy reserves and other reserves:
Provision for interest on policyholders' dividend reserves
Investment expenses:
Interest expenses
Losses on trading securities
Losses on sales of securities
Losses on valuation of securities
Losses on derivative financial instruments
Operating expenses
Other ordinary expenses
Ordinary profit
Extraordinary gains:
Gains on disposal of fixed assets
Other extraordinary gains
Extraordinary losses:
Losses on disposal of fixed assets
Impairment losses
Provision for reserve for price fluctuation
Losses on reduction entry of real estate
Other extraordinary losses
Surplus before income taxes
Income taxes including deferred taxes
Total income taxes
Net surplus
Net surplus attributable to non-controlling interests
Net surplus attributable to the Parent Company

15(Millions of Yen)
Nine months ended

Nine months ended

December 31, 2019

December 31, 2020

470,094456,363

293,292

291,082

109,214106,51279,04884,724

22,831

12,469

1,844

3,930

67,588443,251
305,11058,767424,802
288,623

86,55884,01095,86592,45452,491

50,347

66,18757,721

2,817

2,519

2
2
30,4942
2
25,328

3,396

3,253

－

485

780

2,430

70

19

13,2506,500

82,717

85,17324,92625,674

26,84356

31,560
216

56

98

－

117

2,163

3,432

271

314

121

118

1,770

1,780

－

5

－

1,213

24,73628,344

5,177

7,007

5,177

7,007

19,55821,33729

25

19,52921,311

Asahi Mutual Life Insurance Company

【Unaudited Consolidated Statements of Comprehensive Income】

Net surplus
Other comprehensive income:Net unrealized gains (losses) on available-for-sale securities, net of tax
Remeasurements of defined benefit plans
Comprehensive income:Comprehensive income attributable to the Parent Company
Comprehensive income attributable to non-controlling interests

16(Millions of Yen)
Nine months ended

Nine months ended

December 31, 2019

December 31, 2020

19,55821,33751,22589,92350,537

89,840687

83

70,783111,260

70,754111,234

29

25

Asahi Mutual Life Insurance Company

Notes to Unaudited Consolidated Financial Statements
I. Scope of consolidation
Asahi NewCo Preparatory Co., Ltd., which was newly established during the reporting period ended
December 31, 2020, was included in scope of consolidation.

II. Notes to Unaudited Consolidated Balance Sheet
1. Securities Lent under Lending Agreements
The amount of securities lent under lending agreements was ¥281,675 million as of December 31,
2020.

2. Reserve for Dividends to Policyholders
The change in reserve for dividends to policyholders for the reporting period ended December 31,
2020 was as follows:

Millions of Yen
Nine months ended
December 31, 2020
Balance at the beginning of the reporting period¥
Transfer to reserve from surplus in the previous fiscal year
Dividends to policyholders paid out during the reporting period
Increase in interest
Balance at the end of the reporting period¥

32,073
1,794
2,508
2
31,361

3. Issuance of U.S. Dollar-Denominated Perpetual Subordinated Bonds
The Company issued U.S. dollar-denominated step-up callable perpetual subordinated bonds (the“Bonds”) on January 27, 2021.
Summary terms of the Bonds are as follows:(1) Type: U.S. dollar-denominated step-up callable perpetual subordinated bonds with interest
deferral options(2) Issue price: 100% of principal amount(3) Principal amount: USD 380 million(4) Interest rate: Fixed rate of interest of 4.1% per annum until January, 2031 and a fixed rate
reset with step-up thereafter (reset every 5 years).
(5) Maturity: None (perpetual). The Bonds are callable on each interest payment date on or afterJanuary, 2031 at the discretion of the Company, subject to prior approval by the regulatory
authority, etc.
(6) Collateral and guarantee: The Bonds have no collateral and guarantee and there are no assets

17

Asahi Mutual Life Insurance Company

especially retained for the reimbursement of the Bonds.
(7) Use of proceeds: The Company intends to use the net proceeds from the Bonds for general
corporate purposes, and/or towards the repayment of the U.S. dollar-denominated perpetual
subordinated bonds issued in 2017 subject to regulatory and other approvals.
The Company applies designated hedge accounting (“Furiate-shori”) for currency swap for theBonds.

III. Notes to Unaudited Consolidated Statement of Income
1. Extraordinary Losses
The expenses related to salary guarantees for sales representatives and others as countermeasures toprevent the spread of COVID-19 for the reporting period ended December 31, 2020 were ¥1,091
million, which were included in extraordinary losses.

2. Depreciation
For the reporting period ended December 31, 2020, the total amount of depreciation and depreciationof rental real estate and other assets was ¥13,118 million.

18

Asahi Mutual Life Insurance Company

(5) Consolidated Solvency Margin Ratio(Millions of Yen)

As of March 31, 2020 As of December 31, 2020
Total solvency margin（Ａ）

856,773982,212Foundation funds and surplus

332,078

349,180

Reserve for price fluctuation

43,23045,010Contingency reserve

51,78252,307

Catastrophe loss reserve－－

General allowance for possible loan losses

47

24(Net unrealized gains on available-for-sale securities (before tax effect) anddeferred hedge gains (before tax effect)) × 90% (in case of losses： × 100%)

116,877

223,253

Net unrealized gains on land × 85%

27,786

27,698Sum of unrealized actuarial differences and unrealized past service cost

(2,524)(2,441)

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

137,190

140,214

Qualifying subordinated debt

138,095

127,695

Excess amount of policy reserves based on full-time Zillmer method and qualifying
subordinated debt excluded from the calculation of solvency margin－－

Deduction－－

12,211

19,270180,611

196,124(in case of losses： × 100%)

OthersTotal amount of risk(（Ｂ）

R +R +R +R ) +( R +R +R ) +R +R
2

2

1

5

2

8

9

2

2

3

7

4

6

Insurance risk

R1

13,155

12,732

Ordinary insurance risk

R5

－

－

Disaster insurance risk

R６

－

－

Third-sector insurance risk

R8

9,974

10,316

Small amount short-term insurance provider insurance risk

R９

－

－

Risk of assumed yield

R2

72,24670,072

Minimum guarantee risk

R7

1,055

1,048

Investment risk

R3

101,822

119,344

Operational risk

R4

3,965

4,270

948.7%

1,001.6%

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

Notes:
1. The figures above are calculated based on Articles 86-2 and 88 of the Ordinance for Enforcement of the Insurance BusinessAct and the Public Notice No.23 of the Financial Services Agency of 2011.
2. "Excess amount of policy reserves based on full-time Zillmer method", "Qualifying subordinated debt" and "Excess amountof policy reserves based on full-time Zillmer method and qualifying subordinated debt excluded from the calculation ofsolvency margin" are calculated based on the Public Notice No.25 of the Financial Services Agency of 2011.
3. "Minimum guarantee risk" is calculated by standard method.

(6) Segment Information
The Company and its consolidated subsidiaries operate investment advisory business, etc., in addition to life insurance
business in Japan. However, information on these segments are omitted because they represent such a minor proportion of
total segments.

19

Asahi Mutual Life Insurance Company