May 23, 2024

Financial Results for the Fiscal Year Ended March 31, 2024
Asahi Mutual Life Insurance Company (the “Company”; President: Kenichiro Ishijima) announces
financial results for the fiscal year ended March 31, 2024.

［Contents］
１．Business Highlights

･････

Ｐ１

２．Investment Results of General Account Assets

･････

Ｐ4

３．Unaudited Non-consolidated Balance Sheets

･････

Ｐ9

４．Unaudited Non-consolidated Statements of Income

･････

Ｐ11

５．Breakdown of Ordinary Profit (Fundamental Profit)

･････

Ｐ33

６．Unaudited Non-consolidated Statements of Changes in Net Assets

･････

Ｐ34

７．Unaudited Non-consolidated Statements of Proposed Appropriation of Surplus

･････

Ｐ36

８．Disclosed Claims Based on Insurance Business Act

･････

Ｐ37

９．Solvency Margin Ratio

･････

Ｐ38

10．Status of Separate Account

･････

Ｐ39

11．Status of the Company, Subsidiaries and Affiliates

･････

Ｐ41

１．Business Highlights(1) Sum Insured of Policies in Force and New Policies(i) Policies in Force
As of March 31, 2023
Number of policies

As of March 31, 2024
Number of policies

Amount (100 millions of Yen)

(Thousands)

Changes(%, Pre-FYE)

Individual insurance

7,347

99.6

Individual annuities

452

Group insuranceGroup annuities

Amount (100 millions of Yen)

Changes(%, Pre-FYE)(Thousands)

Changes(%, Pre-FYE)

Changes(%, Pre-FYE)

115,128

93.4

7,258

98.8

106,774

92.7

94.4

18,199

93.9

428

94.6

17,525

96.3--

14,103

100.5

-

-

14,684

104.1

-

-

124

94.8

-

-

96

77.3

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 for which payments havecommenced.
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
Year ended March 31, 2023
Number of policies(Thousands)

Amount (100 millions of Yen)

Changes(%, YoY)

Changes(%, YoY)

New
policies

Net increase by
conversion

Individual insurance

668

92.3

1,909

112.8

3,055

(1,146)

Individual annuities

-

-

(41)

-

-

(41)

Group insurance

-

-

397

186.8

397

-

Group annuities

-

-

-

-

-

-

Year ended March 31, 2024
Number of policies(Thousands)

Amount (100 millions of Yen)

Changes(%, YoY)

Changes(%, YoY)

New
policies

Net increase by
conversion

Individual insurance

635

95.0

1,499

78.5

2,673

(1,174)

Individual annuities

-

-

(36)

-

-

(36)

Group insurance

-

-

1,102

277.6

1,102

-

Group annuities

-

-

-

-

-

-

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 to be held at thetime 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 March 31, 2023

As of March 31, 2024

Changes(%, Pre-FYE)

Changes(%, Pre-FYE)

Individual insurance

3,743

97.7

3,636

97.1

Individual annuities

1,173

94.5

1,124

95.8

Total

4,917

97.0

4,761

96.8

2,235

99.8

2,213

99.0

Third-sector products(ii) New Policies(100 millions of Yen）
Year ended March 31, 2023

Year ended March 31, 2024

Changes(%, YoY)

Changes(%, YoY)

Individual insurance

203

87.3

192

94.8

Individual annuities

(0)

-

(0)

-

202

87.3

192

94.8

163

84.4

157

96.5

Total
Third-sector products

Notes:
1. Annualized premiums are calculated by multiplying factors according to the premium payment method (for single premium contracts, theamount 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.) and waiver benefits (excluding
disability benefits, but including specific illness benefits and nursing care benefits).

2

Asahi Mutual Life Insurance Company

（3）Selected Financial Data

(100 millions of Yen）
Year ended March 31, 2023

Year ended March 31, 2024

Changes(%, YoY)

Changes(%, YoY)

Premium and other income

3,792

98.0

3,672

96.9

Investment income

1,441

99.4

1,832

127.1

Claims and other payments

4,043

106.0

3,839

94.9

Investment expenses

648

177.1

766

118.2

Ordinary profit

176

54.6

181

102.6

（4）Proposed Appropriation of Surplus(100 millions of Yen）
Year ended March 31, 2023

Year ended March 31, 2024

Changes(%, YoY)

Unappropriated surplus

Changes(%, YoY)

601

106.2

636

105.8

Reversal of voluntary surplus reserves

1

-

9

473.8

Reserve for dividends to policyholders

24

117.7

28

116.0

Net surplus

114

86.2

114

100.3

Surplus carried forward

464

112.6

502

108.2

（5）Total Assets(100 millions of Yen）
As of March 31, 2023

As of March 31, 2024

Changes(%, Pre-FYE)

Total assets

52,85696.0

3Changes(%, Pre-FYE)

54,850103.8

Asahi Mutual Life Insurance Company

2. Investment Results of General Account Assets(1) Asset Composition(Millions of Yen)

Cash, deposits, call loans

As of March 31, 2023

As of March 31, 2024

AmountAmountPercentage

207,394

Monetary claims bought

3.9

Percentage

112,046

2.1

20,2920.4

18,811

0.3

4,277,590

81.3

4,495,408

82.4

Domestic bonds

2,609,731

49.6

2,778,957

50.9

Domestic stocks

507,6749.7

599,280

11.0

Foreign securities

1,088,201

20.7

1,027,985

18.8

Foreign bonds

705,216

13.4

593,752

10.9

Foreign stocks and other foreign securities

382,985

7.3

434,233

8.0

71,982

1.4

89,184

1.6

Securities

Other securities
Loans

303,961

5.8

321,346

5.9

Policy loans

30,2540.6

28,3990.5

Industrial and consumer loans

273,707

5.2

292,9465.4

355,384

6.8

347,173

6.4

Deferred tax assets

5,690

0.1

-

-

Others89,543

1.7

160,285

2.9

(648)

(0.0)

(738)

(0.0)

5,259,210

100.0

5,454,333

100.0

1,140,112

21.7

1,026,047

18.8

Real estate

Allowance for possible loan losses
Total
Foreign currency-denominated assets(2) Changes (Increases/Decreases) in Assets(Millions of Yen)

Year ended March 31, 2023

Year ended March 31, 2024

AmountAmountCash, deposits, call loans

62,017(95,347)

Monetary claims bought(2,241)(1,481)(261,644)

217,817(11,408)

169,226

Securities
Domestic bonds
Domestic stocks

43,00491,605

Foreign securities(295,491)(60,216)

Foreign bonds(321,836)(111,464)

26,344

51,247

Foreign stocks and other foreign securities
Other securities

2,251

17,202(7,454)

17,384

Policy loans(1,944)(1,855)

Industrial and consumer loans(5,510)19,239Real estate(8,129)(8,211)

Deferred tax assets

5,690(5,690)

Others(4,854)70,742

(98)

(90)

Loans

Allowance for possible loan losses
Total
Foreign currency-denominated assets

4(216,714)

195,123(349,403)(114,065)

Asahi Mutual Life Insurance Company

（3）Investment Income(Millions of Yen)

Interest, dividends and other income
Interest on deposits
Interest and dividends on securities

Year ended March 31, 2023

Year ended March 31, 2024

118,430

120,8790096,416

97,390Interest on loans

4,964

6,068

Rent revenue from real estate

16,180

16,102Other interest and dividends

868

1,317

16,11544,086

Gains on sales of securities
Gains on sales of domestic bonds

6,720

3,283

Gains on sales of domestic stocks and other securities

1,490

38,913

Gains on sales of foreign securities

7,904

1,890

-

-

Gains on redemption of securities

98-

Gains on derivative financial instruments, net

-

-

1,912

4,528

-

-

OthersForeign exchange gains, net
Reversal of allowance for possible loan losses
Other investment income
Total

7,167

7,159

143,725

176,653（4）Investment Expenses(Millions of Yen)

Year ended March 31, 2023

Year ended March 31, 2024

3,986

4,392

Losses on trading securities-

226

Losses on sales of securities

25,52541,448Losses on sales of domestic bonds

3,752

5,711

Losses on sales of domestic stocks and other securities

1,987

2,209

Losses on sales of foreign securities

19,78533,527

-

-

114

105

-

-

Interest expenses

Others
Losses on valuation of securities
Losses on valuation of domestic bonds
Losses on valuation of domestic stocks and other securities

108

104

Losses on valuation of foreign securities

5

1

Others

-

-

466

275

Losses on redemption of securities
Losses on derivative financial instruments, net

18,826

14,508Foreign exchange losses, net--

Provision for allowance for possible loan losses

99

92

Write-offs of loans

00Depreciation of rental real estate and other assets

5,565

5,337

Other investment expenses

10,313

10,29864,89976,685Total

5Asahi Mutual Life Insurance Company

（5）Investment Indicators(i) Rates of Return（％）

Year ended March 31, 2023

Year ended March 31, 2024

Cash, deposits, call loans

0.00

0.00

Monetary claims bought

2.42

2.41

Securities

1.66

2.22

Domestic bonds

1.48

1.35

Domestic stocks

4.71

19.52

Foreign securities

1.52

0.16

1.39

1.24

1.08

0.94

Real estate

2.39

2.52

Total

1.53

1.97

1.52

0.18

Loans
Industrial and consumer loans

Foreign Investments

Notes:
1．Rates of return above are calculated by dividing the net investment income by the average daily book value balance.
2．Foreign investments are the sum of assets denominated in foreign currencies and yen.

(ii) Average Daily Balance(Millions of Yen)

Year ended March 31, 2023

Year ended March 31, 2024

Cash, deposits, call loans

120,221

134,685

Monetary claims bought

21,334

19,3974,231,827

4,126,954

2,662,709

2,711,695

Securities
Domestic bonds
Domestic stocks

239,809

255,814

Foreign securities

1,257,834

1,082,981

294,427

300,055

263,194

270,570

Loans
Industrial and consumer loans
Real estate
Total
Foreign Investments

365,506

357,182

5,156,282

5,070,401

1,275,193

1,104,078

Note: Foreign investments are the sum of assets denominated in foreign currencies and yen.

6

Asahi Mutual Life Insurance Company

(ⅲ) Net Valuation Gains/Losses on Trading Securities(Millions of Yen)

As of March 31, 2023
AmountTrading securities

As of March 31, 2024

Net valuation
gains(losses)
included in thestatements of income-

Net valuation
gains(losses)
included in thestatements of income

Amount---(ⅳ) Fair Value Information on Securities (other than trading securities)(Millions of Yen)

As of March 31, 2023
Book value Fair value

As of March 31, 2024

Gains/losses
Gains

Held-to-maturity debt
securities
Policy-reserve-matchingbonds
Stocks of subsidiaries
Available-for-sale securities

Book value Fair value

Gains/losses

Losses288,832

312,438

23,60523,661

2,093,763

2,109,209

15,445

129,585

-

-

-

-

(56)

Gains

Losses292,796309,158

16,361

18,278(1,916)(114,139) 2,240,383

2,116,280(124,103)

88,556(212,659)

-

-

-

-

-

(133,587) 1,495,663-

1,626,794

1,786,581

159,786

293,373

1,840,823

345,160

411,641(66,481)

Domestic bonds

417,814401,531(16,283)

2,292(18,575)

443,916

438,333(5,583)

4,065(9,648)Domestic stocks

173,309431,919

258,609268,691(10,081)

162,648518,771356,123

357,392(1,269)Foreign securities

963,085

881,997(81,087)

19,885(100,973)

811,895

795,836(16,059)

38,139(54,198)

Foreign bonds
Foreign stocks andother foreign securities
Other securities

623,607550,216(73,390)

1,744(75,134)

458,711419,152(39,559)

1,860(41,420)

339,477

331,781(7,696)18,141(25,838)

353,183

376,684

23,50036,279(12,778)

71,79370,235(1,557)

2,399(3,956)76,44787,026

10,578

11,942(1,364)

Monetary claims bought
Negotiable certificates ofdeposit
Others

792

897

105

105

-

754

855

100

100

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Total

4,009,390

4,208,228

198,837446,620(247,782) 4,028,844

4,266,262

237,418

518,476(281,057)

Domestic bonds

2,626,015

2,628,326

2,311

135,049(132,738) 2,784,541

2,656,187(128,354)

94,104(222,458)

Domestic stocks

173,309431,919

258,609268,691(10,081)

162,648518,771356,123

357,392(1,269)Foreign securities

1,118,085

1,055,559(62,525)

38,448(100,973)

986,495

984,524(1,971)

53,838(55,809)778,607

723,778(54,828)

20,306(75,134)

633,311607,839(25,472)

17,559(43,031)

339,477

331,781(7,696)18,141(25,838)

353,183

376,684

23,50036,279(12,778)

71,79370,235(1,557)

2,399(3,956)76,44787,026

10,578

11,942(1,364)Foreign bonds
Foreign stocks andother foreign securities
Other securities

20,18722,187
1,999
2,032
(33)
18,71019,753
1,042
1,198
(156)
Monetary claims bought
Negotiable certificates ofdeposit
Others
Notes:
1. The table above includes assets which are considered appropriate to deem as securities under the Financial Instruments and ExchangeAct.
2. The table above excludes stocks, investments in partnerships and others without a market price.

* Book value of stocks, investments in partnerships and others without a market price is as follows:(Millions of Yen)
As of March 31, 2023 As of March 31, 2024

Stocks of subsidiaries

62,621

67,671

Available-for-sale securities

59,77059,241

Domestic stocks

13,134

12,887

Foreign stocks

11

9

Others46,625

46,344

Total

122,391

126,913

7

Asahi Mutual Life Insurance Company

(ⅴ) Fair Value Information on Money Held in Trust
The Company does not hold money held in trust.

（6）Fair Value Information on Real estate (land)(Millions of Yen)

As of March 31, 2023

As of March 31, 2024

Book value Fair value Gains/losses Book value Fair value Gains/losses

216,699 291,263
74,564 211,586 289,803
Land
Notes:
1. Fair Value is calculated based on appraisal value for property tax and others.
2. The amount above includes leasehold.

78,216(Reference)
Fair value information on securities including stocks, investments in partnerships and others without a market price is as follows:(Millions of Yen)

As of March 31, 2023

As of March 31, 2024

Gains/losses

Book value Fair value

Gains
Held-to-maturity debt
securities
Policy-reserve-matchingbonds
Stocks of subsidiaries

288,832

312,438

23,60523,661

2,093,763

2,109,209

15,445

129,585

62,62162,621--

1,686,565

1,852,666

166,100

299,693

417,814401,531(16,283)

2,292

Domestic stocks

186,443445,053

258,609

Foreign securities

1,007,974

933,201(74,773)

Foreign bonds
Foreign stocks andother foreign securities
Other securities

623,607550,216

384,367

Monetary claims bought
Negotiable certificates ofdeposit
OthersAvailable-for-sale securities

Gains/losses

Book value Fair value

Losses(56)

Gains

Losses292,796309,158

16,361

18,278(1,916)(114,139) 2,240,383

2,116,280(124,103)

88,556(212,659)

67,671

67,671---(133,592) 1,554,905-

1,913,368

358,462

424,944(66,481)(18,575)

443,916

438,333(5,583)

4,065(9,648)

268,691(10,081)

175,536531,659

356,123

357,392(1,269)26,205(100,978)856,091

853,335(2,756)51,442(54,198)(73,390)

1,744(75,134)

458,711419,152(39,559)

1,860(41,420)

382,985(1,382)

24,461(25,844)397,379

434,182

36,80349,581(12,778)

73,53971,982(1,557)

2,399(3,956)78,60689,184

10,578

11,942(1,364)

792

897

105

105

-

754

855

100

100

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Total

4,131,782

4,336,935

205,152

452,940(247,788) 4,155,757

4,406,478

250,720531,778(281,057)

Domestic bonds

2,626,015

2,628,326

2,311

135,049(132,738) 2,784,541

2,656,187(128,354)

94,104(222,458)

Domestic bonds

Domestic stocks

249,065

507,674

258,609268,691(10,081)

243,157

599,280

356,123

357,392(1,269)Foreign securities

1,162,974

1,106,764(56,210)44,768(100,978) 1,030,741

1,042,072

11,331

67,140(55,809)

Foreign bonds
Foreign stocks andother foreign securities
Other securities

778,607

723,778(54,828)

20,306(75,134)

633,311607,839(25,472)

17,559(43,031)384,367

382,985(1,382)

24,461(25,844)

397,430

434,233

36,80349,581(12,778)

73,53971,982(1,557)

2,399(3,956)78,60689,184

10,578

11,942(1,364)

Monetary claims bought
Negotiable certificates ofdeposit
Others

20,18722,187

1,999

2,032

(33)

18,71019,753

1,042

1,198

(156)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

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

8Asahi Mutual Life Insurance Company

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

Assets:Cash and deposits:
Cash
Deposits
Call loans
Monetary claims bought
Securities:
National government bonds
Local government bonds
Corporate bonds
Domestic stocks
Foreign securities
Other securities
Loans:
Policy loans
Industrial and consumer loans
Tangible fixed assets:
Land
Buildings
Lease assets
Construction in progress
Other tangible fixed assets
Intangible fixed assets:
Software
Other intangible fixed assets
Agency accounts receivable
Reinsurance receivables
Other assets:
Accounts receivable
Prepaid expenses
Accrued income
Money on deposit
Derivative financial instruments
Cash collateral paid for financial instruments
Suspense payments
Other assets
Prepaid pension cost
Deferred tax assets
Customers’ liabilities under acceptances and guarantees
Allowance for possible loan losses
Total assets

9

As of March 31, 2023

As of March 31, 2024

41,67316
41,656
166,000
20,292
4,303,789
1,693,184
50,610865,936
507,674
1,088,201
98,181
303,961
30,254
273,707359,493
212,541
141,781
1,360
1,062
2,748
33,497
19,813
13,6836
687
50,226
14,406
3,385
18,292
2,791
5,879
2,473
1,355
1,641
424
5,690
600
(648)
5,285,695

39,39318
39,37573,00018,811
4,525,808
1,812,423
48,037
918,496599,280
1,027,985
119,584
321,346
28,399292,946
353,725
207,428
138,556
4,138
1,188
2,414
35,45628,8866,569
1394
90,98060,684
4,472
18,389
3,006
896
1,417
756
1,358
480
26,425(738)
5,485,084

Asahi Mutual Life Insurance Company

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

As of March 31, 2023
Liabilities:
Policy reserves and other reserves:
Reserve for outstanding claims
Policy reserves
Reserve for dividends to policyholders
Reinsurance payables
Bonds payable
Other liabilities:
Payables under securities borrowing transactions
Loans payable
Income taxes payable
Accounts payable
Accrued expenses
Deferred income
Deposits received
Guarantee deposits received
Derivative financial instruments
Cash collateral received for financial instruments
Lease obligations
Asset retirement obligations
Suspense receipts
Reserve 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

10

As of March 31, 2024

4,331,522
34,5134,269,904
27,103700
150,555
290,565
182,247
49,000
133
6,048
8,202
366
494
17,47315,084
9,039
1,360
967
148
28,727
38,21015,062600
4,855,944

4,268,961
36,7484,206,149
26,064670
102,609
382,052
248,836
78,000
3,797
8,974
8,053
196
421
17,081
5,004
6,359
4,138
1,087
101
28,19540,37041,386
14,301
26,425
4,904,972

51,000206,000
281
90,207366
89,841
22,6007,093
60,148347,489

51,000206,000
281
102,604381
102,223
31,700
6,893
63,629359,886

130,668(48,406)
82,261
429,751
5,285,695

270,597(50,371)
220,226
580,112
5,485,084

Asahi Mutual Life Insurance Company

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

Year ended March 31, 2023 Year ended March 31, 2024
629,512622,393379,223
367,279
377,409
366,054
1,813
1,225
144,154
183,237
118,430
120,879
96,416
97,390
4,964
6,068
16,180
16,102868
1,317
16,11544,086
98
1,912
4,528
7,167
7,159
429
6,583
106,134
71,876
7,536
5,082
1,119
532
95,16363,7552,314
2,505
611,863604,278
404,395
383,929
110,749
105,474
112,411
109,610
94,53074,48081,75587,320
2,426
4,593
2,522
2,449
2,498
2,237
2,494
2,234
3
3
64,89976,685
3,986
4,392
226
25,52541,448
114
105
466
275
18,826
14,508
99
92
5,565
5,337
10,313
10,298106,088
108,533
33,98232,892
10,019
8,961
9,197
9,060
12,29911,8462,466
3,024
17,64818,115
11,889
5,542
1,889
5,542
10,000
6,072
4,308
2,738
905
3,289
1,141
2,160
96
44
5
23,464
19,348(1,300)10,212
7,507(6,115)
6,207
4,097
17,257
15,251

Ordinary income:Premium and other income:Insurance premiums
Reinsurance revenue
Investment income:Interest, dividends and other income:Interest and dividends on securities
Interest on loans
Rent revenue from real estate
Other interest and dividends
Gains on sales of securities
Gains on redemption of securities
Foreign exchange gains
Other investment income
Investment gains on separate accounts
Other ordinary income:Fund receipt from deposit of claims paid
Reversal of reserve for employees’ retirement benefits
Reversal of policy reserves
Other ordinary income
Ordinary expenses:
Claims and other payments:
ClaimsAnnuities
Benefits
Surrender benefits
Other payments
Reinsurance premiums
Provision for policy reserves and other reserves:
Provision for reserve for outstanding claims
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 redemption of securities
Losses on derivative financial instruments
Provision for allowance for possible loan losses
Depreciation of rental real estate and other assets
Other investment expenses
Operating expenses
Other ordinary expenses:
Claim deposit payments
Taxes
Depreciation
Other ordinary expenses
Ordinary profit
Extraordinary gains:
Gains on disposal of fixed assets
Reversal of reserve for price fluctuation
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-current
Income taxes-deferred
Total income taxes
Net surplus

11

Asahi Mutual Life Insurance Company

I.

Presentation of Unaudited Non-consolidated Financial Statements

Basis of Presentation
The accompanying non-consolidated financial statements have been prepared from the accounts maintainedby Asahi Mutual Life Insurance Company (the “Company”) in accordance with the provisions set forth in the
Insurance Business Act of Japan and its related rules and regulations applicable to the mutual life insurance
industry and in conformity with accounting principles generally accepted in Japan, which are different incertain respects from accounting principles generally accepted in countries and jurisdictions other than Japan.
In addition, the notes to the non-consolidated financial statements include information which is not required
under accounting principles generally accepted in Japan but is presented herein as additional information.
Amounts of less than one million yen have been eliminated. As a result, total amounts in yen shown herein do
not necessarily agree with the sum of the individual amounts.
The Insurance Business Act shall prescribe the disclosure of a single fiscal year. The Company provides thedisclosure of comparative financial information corresponding to each comparative fiscal year in the presented
financial statements for use by readers outside Japan.
In preparing the accompanying non-consolidated financial statements, certain reclassifications have been
made to the non-consolidated financial statements issued domestically in order to present them in a format
which is more familiar to readers outside Japan.

II. Notes to Non-consolidated Balance Sheets
1.

Significant Accounting Policies(1) Valuation methods of securities
The valuation of securities, including deposits and monetary claims bought which are equivalent tosecurities is as follows:i)

Trading securities are stated at fair market value. Costs of sales are determined by the moving
average method.

ii)

Held-to-maturity debt securities are stated at amortized cost (straight-line method) determined by
the moving average method.

iii) Policy-reserve-matching bonds, which are in accordance with “Temporary Treatment of Accounting
and Auditing Concerning Policy-reserve-matching Bonds in Insurance Industry” (Industry Audit
Committee Report No. 21 issued by the Japanese Institute of Certified Public Accountants(“JICPA”)), are stated at amortized cost (straight-line method) determined by the moving averagemethod.
iv)

Investments in subsidiaries and affiliates are stated at cost.

v)

Available-for-sale securities except for the following are stated at fair market value based on themarket prices at the balance sheet date, of which costs of sales are determined by the moving
average method. Available-for-sale securities, of which public and corporate bonds including
foreign bonds with the difference between acquisition cost and face value considered as an

12

Asahi Mutual Life Insurance Company

adjustment of interest, are stated at amortized cost (straight-line method) determined by the moving
average method. Stocks and others without a market price are stated at cost determined by themoving average method. Net unrealized gains or losses on these available-for-sale securities, net oftax, are recorded as a separate component of net assets.
(2) Policy-reserve-matching bonds
The Company classifies bonds held with the aim of matching the duration to outstanding insurance
liabilities within the sub-groups (categorized by insurance type, investment policy and other factors) ofindividual life insurance and individual annuities as policy-reserve-matching bonds in accordance with
“Temporary Treatment of Accounting and Auditing Concerning Policy-reserve-matching Bonds inInsurance Industry” (Industry Audit Committee Report No. 21 issued by the JICPA).
(3) Valuation methods of derivative financial instruments
Derivative financial instruments are stated at fair market value.
(4) Revaluation of land
The Company revalued the land for business purposes based on the Act on Revaluation of Land (Act No.
34 promulgated on March 31, 1998). The difference between fair value and book value resulting fromthe revaluation, net of related taxes, is recorded as land revaluation differences as a separate componentof net assets and the related tax is recorded as deferred tax liabilities for revaluation.
■

Date of revaluation: March 31, 2001■

Method of revaluation as prescribed for in Article 3, Paragraph 3 of the said Act:The calculation is based on the publicly announced appraisal value with certain adjustments set
forth in Article 2, Item 1 of the Enforcement Ordinance of the Act on Revaluation of Land
(Government Ordinance No. 119 promulgated on March 31, 1998) or the appraisal value
determined by the real-estate appraiser set forth in Article 2, Item 5 of the said Ordinance withcertain reasonable adjustments.

(5) Depreciation of tangible fixed assets
Depreciation of the Company’s tangible fixed assets is calculated by the following methods.
■

Tangible fixed assets (excluding lease assets): Declining-balance method
However, buildings are depreciated using the straight-line method.

■

Lease assets related to finance lease transactions that do not transfer ownership: Straight-line
method over the lease term with no residual value(6) Foreign currency translation
Foreign currency-denominated assets and liabilities (excluding the shares of subsidiaries and affiliates)
are translated into Japanese yen at the effective exchange rate prevailing at the balance sheet date. The
shares of subsidiaries and affiliates are translated into Japanese yen at the exchange rate at the acquisition
date.

13

Asahi Mutual Life Insurance Company

(7) Allowance for possible loan losses
Allowance for possible loan losses is provided in accordance with the Company’s standards of selfassessment and write-offs and reserves on credit quality:i)

For credit to borrowers who are legally bankrupt such as being in bankruptcy proceedings or civil
rehabilitation (hereinafter “legally bankrupt borrowers”) and who are substantially bankrupt(hereinafter “substantially bankrupt borrowers”), the Company provides the remaining amount ofcredits after the direct write-off described below and the deductions of the amount expected to becollected through the disposal of collateral or the execution of guarantees.

ii)

For credit to borrowers who are not currently bankrupt but have a high risk of bankruptcy(hereinafter “borrowers with high possibility of bankruptcy”), the Company provides the amounts
deemed as necessary considering the borrowers’ ability to pay, within the amounts after deductionsof the amount expected to be collected through the disposal of collateral or the execution ofguarantees.

iii) For credit to borrowers other than the above, the Company provides the amounts calculated bymultiplying the book value by the actual ratio of bad debt losses on defaults during a certain past
period.
All credit is assessed by the relevant departments in accordance with the Company’s standards of selfassessment on credit quality. The results of the assessment are reviewed by the audit department, whichis independent of business-related divisions. Subsequently, allowance for possible loan losses is provided
based on the results of these assessments.
For credit to legally bankrupt borrowers and substantially bankrupt borrowers, the amounts remaining
after deductions of collateral value or the amounts collectible through the execution of guarantees are
written-off directly from the book value as the estimated uncollectible amounts. The amounts written-off
was ¥3 million as of March 31, 2024.
(8) Accounting for employees’ retirement benefits and method of amortizing retirement benefit expenses
Reserve for employees’ retirement benefits and prepaid pension cost are presented for the employees’
retirement benefits based on projected benefit obligation and pension plan assets at the balance sheet date.
The Company uses the following methods of accounting in relation to retirement benefits.
■

The retirement benefit obligation is attributed to each period by the benefit formula method.

■

Actuarial differences are amortized under the straight-line method over a period of six years starting
the following year.

■

Prior service cost is charged to income when incurred.

(9) Reserve for price fluctuation
Reserve for price fluctuation is calculated in accordance with Article 115 of the Insurance Business Act.

14

Asahi Mutual Life Insurance Company

(10) Accounting for hedging activities
Hedging activities are accounted for in accordance with the “Accounting Standards for Financial
Instruments” (Accounting Standards Board of Japan (“ASBJ”) Statement No. 10).
The Company mainly applies the following hedging accounting:
The Company applies deferred hedge accounting and the exceptional accounting treatment (“Tokureishori”) for interest rate swaps used to hedge the cash flow volatility of certain loans.
The Company also applies fair value hedge accounting for hedging activities related to foreign exchange
rate fluctuation exposures on certain bonds, investment trusts and others denominated in foreign
currencies.
The Company also applies designated hedge accounting (“Furiate-shori”) for currency swaps used tohedge foreign exchange rate fluctuation exposures on the foreign currency-denominated bonds issued by
the Company.
The Company also applies designated hedge accounting (“Furiate-shori”) for the foreign currencydenominated transactions other than the above.
The effectiveness of a hedge is mostly assessed by a ratio analysis, comparing the fluctuations in the fairvalue or cash flows of hedged items and hedging instruments.
(11) Accounting for consumption taxes
The Company accounts for consumption tax and local consumption tax by the tax-exclusion method. The
consumption taxes on certain assets, which are not deductible from consumption taxes withheld and thatare stipulated to be deferred under the Corporation Tax Act of Japan, are deferred as prepaid expenses
and amortized equally over five years.
Consumption taxes other than deferred consumption taxes are recognized as an expense when incurred.
(12) Premium and other income (excluding reinsurance revenue)
Premium and other income (excluding reinsurance revenue) are recorded in principle for insurance
policies for which insurance premium has been received and the insurer’s liability under the insurance
policies or insurance coverage period has commenced by the relevant amounts received.
Of insurance premiums, the portion corresponding to the period that has yet to pass as of the end of the
fiscal year is set aside as policy reserves in accordance with Article 116 of the Insurance Business Act
and Article 69, Paragraph 1, Item 2 of the Enforcement Regulation of the Insurance Business Act.
(13) Claims and other payments (excluding reinsurance premiums)
Claims and other payments (excluding reinsurance premiums) are recorded for insurance policies forwhich amounts calculated under policy conditions have been paid in the occurrence of insured events
under the policy conditions.

15

Asahi Mutual Life Insurance Company

In accordance with Article 117 of the Insurance Business Act and Article 72 of the Enforcement
Regulation of the Insurance Business Act, reserve for outstanding claims is set aside for claims, etc.
which is not recorded as payment of claims, etc. but for which the Company has payment obligation or
the occurrence of insured events has not been reported but the Company finds that insured events havealready occurred, as of the end of the fiscal year.
With respect to reserve for outstanding claims incurred but not reported events (referring to claims forwhich the occurrence of the insured events has not been reported but the Company finds that insured
events have already occurred; hereinafter the same), the special treatment of the payment of
hospitalization benefits with regard to people with diagnoses of COVID-19 given and under the care ofa doctor and the like at an accommodation facility or at home (“deemed hospitalizations”) was terminatedon May 8, 2023. As a result of this change, an appropriate amount of reserves cannot be obtained withthe calculation method set forth in the main rules in Article 1, Paragraph 1 of the Japanese Ministry of
Finance Public Notice No.234, 1998 (“IBNR Notice”). The Company therefore records the amount thatwas calculated using the following method, pursuant to provisions in the proviso of Article 1, Paragraph
1 of IBNR Notice (the “Proviso”).
(Overview of the calculation method)
The Company calculates the amount of reserve for outstanding claims incurred but not reported eventsusing the same manner as that set forth in the main rules in Article 1, Paragraph 1 of IBNR Notice,excluding the amount related to deemed hospitalizations from a required amount of reserves for incurred
but not reported events and the amount of claim payments for all the fiscal year, as set forth in the main
rules in Article 1, Paragraph 1 of IBNR Notice.
In the fiscal year ended March 31, 2023, the Company calculated the reserve for outstanding claims
incurred but not reported events for deemed hospitalizations and the others separately; however, thespecial treatment of the payment of hospitalization benefits with regard to deemed hospitalization was
terminated for the fiscal year ended March 31, 2024. Therefore, the Company revised its methodology
to calculate the amount of reserve for outstanding claims incurred but not reported events for deemedhospitalizations as zero.
(14) Policy reserves
Policy reserves are calculated as stated in accordance with the methods stated in the statement ofcalculation procedures for insurance premiums and policy reserves (Article 4, Paragraph 2, Item 4 of the
Insurance Business Act) pursuant to Article 116, Paragraph 1 of the Insurance Business Act, for insurance
policies under which the insurer’s liability has started as of the end of the fiscal year, in preparation forthe performance of future obligations under the insurance policies.
Of policy reserves, the premium reserves at the end of the fiscal year are calculated by the following
method:In regard to the policies subject to the standard policy reserves, the method as prescribed by theCommissioner of Financial Services Agency (Japanese Ministry of Finance Public Notice No. 48, 1996)
is applied.
In regard to the policies not subject to the standard policy reserves, the net level premium method isapplied.

16

Asahi Mutual Life Insurance Company

As of March 31, 2024, the Company accumulated additional policy reserves for individual annuity
insurance policies with an assumed rate of 3.75% or higher for which annuity payment commenced onor before March 31, 2024 in accordance with the provision of Article 69, Paragraph 5 of the Enforcement
Regulation of the Insurance Business Act.
As a result, policy reserves increased by ¥46,388 million and ordinary profits and surplus before income
taxes decreased by ¥46,388 million compared with if the additional reserves had not been accumulated.
Regarding policy reserves, the chief actuary checks that policy reserves are appropriately accumulated
in each fiscal year, pursuant to Article 121, Paragraph 1 of the Insurance Business Act and Article 80 of
the Enforcement Regulation of the Insurance Business Act.
Contingency reserves included in policy reserves are set aside in accordance with Article 116 of the
Insurance Business Act and Article 69, Paragraph 1, Item 3 of the Enforcement Regulation of the
Insurance Business Act to cover risks that may accrue in the future in order to ensure the performance of
future obligations under insurance policies.
(15) Impairment losses of tangible fixed assets
Impairment losses of the Company’s tangible fixed assets are calculated by the following method.
i)

Calculation method
Real estate and other assets used for insurance business operations are classified as one asset groupas a whole. Other assets such as real estate for rent, real estate not in use and real estate scheduled
to be sold are classified as one group individually. As for real estate used for multiple purposes, theasset group to which the real estate belongs is decided depending on usage rate and others.
The Company identifies indications of impairment on each asset group when earnings frombusiness operations using the asset group continuously become negative.
As for asset groups for which indications of impairment are identified, when total amounts ofundiscounted net future cash flows from the asset groups are less than their book values, theCompany recognizes impairment losses and reduces the book values to their recoverable amounts.
The recoverable amounts of real estate and other assets for insurance business operation and realestate for rent are determined at value in use or net realizable value. The recoverable amounts ofreal estate not in use and real estate scheduled to be sold are determined at net realizable value.
Value in use is determined as the discounted present value of estimated net future cash flows anddiscount rate used in the calculation is based on the cost of capital of the Company.
Net realizable value is calculated based on the appraisal value in accordance with “Real EstateAppraisal Standards” or the publicly announced appraisal value after deducting expected disposal
costs.

ii)

Key assumptions
Key assumptions for the estimated net future cash flows which are used in recognizing impairment
losses and calculating value in use are usage plans considering current status of use of asset groups,

17

Asahi Mutual Life Insurance Company

including tenancy rates, rents and others. These assumptions may be affected by economic conditionand changes specific to asset groups.
iii) Effects on non-consolidated financial statements for the following fiscal year
While the Company considers key assumptions for the estimated net future cash flows which areused in recognizing impairment losses and calculating value in use are best estimate based on
available information including external information, impairment losses may occur in the following
fiscal year due to future uncertainties.
Furthermore, the appraisal value in accordance with “Real Estate Appraisal Standards” may beaffected by future real estate market trends. In case that net realizable value decreases as a result,
impairment losses may occur in the following fiscal year.
(16) Software
Capitalized software for internal use owned by the Company is amortized using the straight-line method
over the estimated useful lives.
2.

Financial Instruments

Asset management of the general accounts other than the separate accounts stipulated in Article 118, Paragraph
1 of the Insurance Business Act is conducted based on the following principles.
■

For accumulation whole life with variable interest rates, accumulation insurance with variable interest
rates and new single premium individual annuities which have an effective date on or after April 2, 2012,
the Company mainly invests in domestic bonds, engaging in matching asset liability management, orMatching ALM, which aims at matching the duration to outstanding insurance liabilities to avoid interest
rate fluctuation risks.

■

For individual life insurance and individual annuities other than above, the Company holds yendenominated fixed income investments, including bonds and loans, as the core of its asset portfolio. The
Company also holds domestic stocks, foreign securities and real estate assets to enhance its profitability.

Derivatives are mainly used to hedge market price fluctuation risk and exchange rate fluctuation risk regarding
securities and exchange rate fluctuation risk related to the foreign currency-denominated bonds issued by theCompany. As the major financial instruments, securities are exposed to market risk and credit risk, loans are
exposed to credit risk and exchange rate fluctuation risk, and derivatives are exposed to market risk and creditrisk.
In managing market risks, the following two methods are used. One is the quantitative risk management of
securities etc. using the Value at Risk (“VaR”) method and the other is the risk management by stress test andsensitivity analysis which analyze the effect on the Company’s whole portfolio, simulating scenarios ofdeteriorating market environments. This is for the purpose of managing an appropriate asset allocation within
the ranges of acceptable risks.

18

Asahi Mutual Life Insurance Company

In managing credit risks, the Company quantifies the credit risks of entire portfolio through VaR method andcontrols the amount of risks within an acceptable range. Furthermore, the Company assigns in-house credit
ratings to our borrowers in accordance with the creditworthiness of each borrower. Strict credit research ofeach borrower before lending as well as following up on any changes of creditworthiness of each borrower
after lending are implemented by Risk Management Department, which is independent of the departments
executing investments and lending. Maximum limits of credit are set up for each borrower in accordance with
its credit risks to avoid the concentration of credit risks on specific corporations and specific corporationgroups. Through all these measures, the Company endeavors to develop high quality portfolio.
The balance sheet amounts, fair values and the differences between those of major financial assets andliabilities as of March 31, 2024 were as follows. The following table does not include cash and deposits, callloans and payables under securities borrowing transactions which are mostly settled in a short term and theirfair values approximate their book values.
Millions of Yen
As of March 31, 2024
Monetary claims bought
Held-to-maturity debt securities
Available-for-sale securities
Securities
Trading securities
Held-to-maturity debt securities
Policy-reserve-matching bonds
Available-for-sale securities
Loans
Policy loans
Industrial and consumer loans
Total assets
Bonds payable
Loans payable
Total liabilities
Derivative financial instruments
Hedge accounting not applied
Hedge accounting applied

Balance Sheet
Amount¥18,811
17,956855
4,385,592
30,399274,840
2,240,383
1,839,968
321,346
28,399292,946
4,725,650
102,60978,000180,609(4,107)(876)(3,231)

Fair Value¥

19,75318,897855
4,276,909
30,399290,260
2,116,280
1,839,968
329,278
28,399300,879
4,625,940
103,456
82,387
185,843(4,107)(876)(3,231)

Difference
¥

941
941
(108,683)
15,419(124,103)
7,932
7,932
(99,809)
847
4,387
5,234
-

*Assets and liabilities generated by derivative financial instruments are offset and presented net.
Net liabilities in total are presented in parentheses.

Unlisted stocks and others, including investments in subsidiaries and affiliates, without market prices are notincluded in the table above. The amount of the unlisted stocks and others, including investments in subsidiaries
and affiliates, reported in the non-consolidated balance sheet was ¥80,570 million as of March 31, 2024.
Investment trusts which are accounted for in accordance with Paragraph 24-3 and 24-9 of “Implementation
Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No. 31, revised on June 17,2021) are included in the table above.
Investments in partnerships and others which are accounted for in accordance with Paragraph 24-16 of“Implementation Guidance on Accounting Standard for Fair Value Measurement” are not included in the table
above. The amount of the investments in partnerships and others, reported in the non-consolidated balance

19

Asahi Mutual Life Insurance Company

sheet was ¥59,645 million as of March 31, 2024.
3.

Matters Concerning Fair Value of Major Financial Instruments and Breakdown by Input Level

Fair values of financial instruments are categorized into the following three levels in accordance with theobservability and significance of the inputs used to measure the fair value.
Level 1: Fair values measured by unadjusted quoted prices in active markets for identical assets or liabilities
Level 2: Fair values measured by inputs which are directly or indirectly observable other than Level 1 inputs
Level 3: Fair values measured by significant unobservable inputs
When several inputs that have significant impact on fair value measurement are used and those inputs are
categorized into different levels, the fair value is categorized into the lowest priority level for fair value
measurement among the levels to which each of the inputs belongs.
(1) Financial assets and liabilities recorded at fair values on the non-consolidated balance sheet

As of March 31, 2024
Monetary claims bought
Available-for-sale securities
Securities *1
Trading securities
OthersAvailable-for-sale securities
National government bonds andlocal government bonds
Corporate bonds
Domestic stocks
Foreign bonds
OthersTotal assets
Derivative financial instruments *2
Currency-related
Stock-related

Millions of Yen
Fair Value
Level 1
Level 2
Level 3
Total
¥
- ¥
- ¥
855 ¥
855
855
855
621,493
1,050,162
32,062
1,703,718
30,39930,39930,39930,399621,493
1,019,762
32,062
1,673,319
13,196
518,771
89,525
621,493-650
424,486
387,089
207,536
1,050,162(4,109)(4,109)-32,062
32,9181
1

13,847424,486
518,771
419,152
297,061
1,704,574(4,107)(4,109)1*1

Investment trusts which are accounted for in accordance with Paragraph 24-3 and 24-9 of“Implementation Guidance on Accounting Standard for Fair Value Measurement” are not included in thetable above. The balance sheet amount of the investment trusts which are accounted for in accordancewith paragraph 24-3 of the implementation guidance, was \161,421 million as of March 31, 2024. Thebalance sheet amount of the investment trusts which are accounted for in accordance with Paragraph24-9 of the implementation guidance, was \5,227 million as of March 31, 2024.

*2

Assets and liabilities generated by derivative financial instruments are offset and presented net. Net
liabilities in total are presented in parentheses.

ⅰ)

Investment trusts which are accounted for in accordance with Paragraph 24-3 and 24-9 of“Implementation Guidance on Accounting Standard for Fair Value Measurement”

20

Asahi Mutual Life Insurance Company

a)Reconciliation between the beginning and ending balance, and net unrealized gains (losses)
recognized as gains (losses) for the fiscal year, of the investment trusts which are accounted
for in accordance with Paragraph 24-3 of “Implementation Guidance on Accounting Standard
for Fair Value Measurement”

Beginning balance
Gains (losses) and net unrealized gains (losses) on
available-for-sale securities, net of tax recorded forthe fiscal year:
Gains (losses) recorded for the fiscal year *Net unrealized gains (losses) on available-for-sale securities,
net of tax recorded for the fiscal year
Net amount of purchase, sale, and redemption
Amount of investment trusts whose NAV is deemed as
market value
Amount of investment trusts whose NAV is not deemed as
market value
Ending balance
Net unrealized gains (losses) on investment trusts held at thebalance sheet date among the amount recorded to gains (losses)
for the fiscal year *Millions of Yen
Year ended
March 31, 2024¥
134,005

11,912
1,040
10,871
15,504
161,4211,040* Those amounts are included in investment income and investment expenses in the nonconsolidated statement of income.

b)

Breakdown of balance by restriction on cancellation as of the end of fiscal year
Millions of Yen
As ofMarch 31, 2024
Investment trusts which need more than 1 month to cancel fromthe notification of cancellation
Other than above

21¥

41,015
120,406

Asahi Mutual Life Insurance Company

c)Reconciliation between the beginning and ending balance, and net unrealized gains (losses)
recognized as gains (losses) for the fiscal year, of the investment trusts which are accounted
for in accordance with Paragraph 24-9 of “Implementation Guidance on Accounting Standard
for Fair Value Measurement”

Beginning balance
Gains (losses) and net unrealized gains (losses) on
available-for-sale securities, net of tax recorded forthe fiscal year:
Gains (losses) recorded for the fiscal year *Net unrealized gains (losses) on available-for-salesecurities, net of tax recorded for the fiscal year
Net amount of purchase, sale, and redemption
Amount of investment trusts whose NAV is deemed as
market value
Amount of investment trusts whose NAV is not deemed as
market value
Ending balance
Net unrealized gains (losses) on investment trusts held at thebalance sheet date among the amount recorded to gains(losses) for the fiscal year *Millions of Yen
As ofMarch 31, 2024
¥
5,196

26
26
4
5,227
-

* Those amounts are included in investment income and investment expenses in the nonconsolidated statement of income.

(2) Financial assets and liabilities not recorded at fair values on the non-consolidated balance sheet

As of March 31, 2024
Monetary claims bought
Held-to-maturity debt securities
Securities
Held-to-maturity debt securities
National government bonds andlocal government bonds
Corporate bonds
Foreign bonds
Policy-reserve-matching bonds
National government bonds andlocal government bonds
Corporate bonds
Loans
Policy loans
Industrial and consumer loans
Total assets
Bonds payable
Loans payable
Total liabilities

Millions of Yen
Fair Value
Level 1
Level 2
Level 3
Total¥
- ¥18,517 ¥379 ¥18,897
18,517379
18,8971,737,193
480,660
188,687 2,406,541
35,50066,072
188,687
290,260
35,5001,701,692

66,072
414,587

188,687-

35,50066,072
188,687
2,116,280

1,701,692
1,737,193-

43,183
371,404
499,177
103,456
103,456

329,278
28,399300,879
518,346
82,387
82,387

1,744,876
371,404
329,278
28,399300,879
2,754,717
103,456
82,387
185,843

22

Asahi Mutual Life Insurance Company

(3) Description of the evaluation methods and inputs used to measure fair valuei)Securities including monetary claims bought which are treated as securities based on “AccountingStandard for Financial Instruments” (ASBJ Statement No. 10)
Fair values of securities for which unadjusted quoted market prices in active markets are available
are categorized as Level 1, which mainly include listed stocks, listed investment trusts andgovernment bonds. In the case the market is inactive even if the quoted market price is available,
those securities are categorized as Level 2, which mainly include corporate bonds and foreign bonds.
In the case the quoted market price is not available, fair values are measured by evaluation methods
such as discounting future cash flows. In evaluation, the Company maximizes the use of observable
inputs including swap rates, interest rate swap spreads, currency basis and others. When significant
unobservable inputs are used to measure fair values, those securities are categorized as Level 3.
The fair value of unlisted investment trusts, which have no restriction on cancellation that issignificant enough to require compensation for risk from market participants, are based on thequoted prices and others offered by counterparty financial institutions and categorized as level 2.

ii) Loans
As credit exposure for policy loans without specific repayment periods is limited to the amount of
the cash surrender value, the Company considers book value as fair value with assumption that fairvalue approximates book value in light of factors such as projected repayment period and interest
terms. Policy loans are categorized as level 3.
As for industrial and consumer loans, the fair value of loans is stated at theoretical prices calculatedby discounting the future cash flows to the present value by type of loan, using market interest rates
with some adjustments based on internal credit rating. Industrial and consumer loans are categorized
as level 3. The fair value of loans to legally bankrupt borrowers, substantially bankrupt borrowers
and borrowers with high possibility of bankruptcy is stated at the amounts by deducting estimatedlosses from the book value before direct write-offs. Loans to legally bankrupt borrowers,
substantially bankrupt borrowers and borrowers with high possibility of bankruptcy are categorized
as level 3.
iii) Bonds payable
The fair value of bonds payable issued by the Company is stated at fair market value. Bonds payableissued by the Company are categorized as level 2. The fair value of bonds payable for which
designated hedge accounting (“Furiate-shori”) for currency swaps are applied is stated at fair market
value added by the fair value of currency swaps. The Company adopts prices obtained from external
information venders as the fair value of currency swaps.
iv) Loans payableAs for loans payable, the fair value of loans is stated at theoretical prices calculated by discounting
the future cash flows to the present value, using market interest rates with some adjustments basedon the Company’s credit risk. Loans payable are categorized as level 3.

23

Asahi Mutual Life Insurance Company

v)

Derivative financial instruments
As for derivative financial instruments, the fair values of foreign currency forward contracts arestated at theoretical prices calculated by the Company based on the TTM at the balance sheet date.
The fair values of currency options, equity options and interest rate swaptions are stated at thequoted prices offered by counterparty financial institutions.
In evaluation of derivative financial instruments, the Company maximizes the use of observable
inputs. In the case unobservable inputs are not used or impact of unobservable inputs are notmaterial, derivative financial instruments are categorized as level 2. In the case significant
unobservable inputs are used, derivative financial instruments are categorized as level 3.

(4) Quantitative information about financial assets and liabilities measured and stated in the nonconsolidated balance sheet at fair value and categorized as Level 3i)Quantitative information on significant unobservable inputs
Quoted prices obtained from third parties are used for fair values categorized as level 3 without
adjustment.

ii)

Reconciliation between the beginning and ending balance, and net unrealized gains (losses)
recognized as gains (losses) for the fiscal year

Year ended March 31, 2024

Beginning balance
Gains (losses) and net unrealized gains(losses) on available-for-sale securities,
net of tax recorded for the fiscal year:
Gains (losses) recorded for the fiscal
year *Net unrealized gains (losses) on
available-for-sale securities, net of tax
recorded for the fiscal year
Net amount of purchase, sale, issue,
and settlement
Transfer to fair values of Level 3
Transfer from fair values of Level 3
Ending balance
Net unrealized gains (losses) on financial
assets and liabilities held at the balance
sheet date among the amount recorded togains (losses) for the fiscal year **Millions of Yen
Monetary
Derivative
Securities
claims bought
financial
Total
Available-for- Available-forinstruments(i) + (ii)sale securities sale securities
Stock-related
OthersForeign bonds
(i)
（ii）
¥
897 ¥
64,899 ¥65,796 ¥550(24)

12,396

12,371

1,245

(20)

4,535

4,515

1,245

(4)

7,860

7,856

-

(16)
855

(45,233)
32,062(45,249)
32,918(1,794)
1

(20)

4,535

4,515

(681)

Those amounts are included in investment income and investment expenses in the non-consolidated statementof income.

24

Asahi Mutual Life Insurance Company

iii) Description of the fair value evaluation process
The Company establishes policies and procedures for measuring the fair value in the actuarial andaccounting department and the risk management department. In accordance with these policies andprocedures, the risk management department measures the fair value. The validity of the evaluation
methods and inputs used to measure fair value and the appropriateness of categorization of fairvalue are verified in the independent division in the risk management department.
In fair value measurement, valuation models in which the nature, characteristics and risks ofindividual assets are most appropriately reflected are used. In addition, when quoted prices obtained
from third parties are used, the validity of the prices is verified by appropriate methods such asconfirmation of evaluation method and used inputs and comparison with the fair values of similar
financial instruments.
4.

Investments and Rental Properties

The Company holds investment and rental properties such as office buildings in Tokyo and other areas. The
carrying amounts and the fair values of investment and rental properties were ¥235,406 million and ¥289,417
million as of March 31, 2024 The fair value is mainly based on the value (including some adjustments using
the reference prices) of real estate appraisal report prepared by the external real-estate appraiser in accordancewith real estate appraisal standards
5.

Securities Lent under Lending Agreements

The amounts of securities lent under lending agreements was ¥292,339 million as of March 31, 2024.
6.

Claims

The total amount of claims against bankrupt and quasi-bankrupt obligors, claims with collection risk,delinquent loans three or more months past due and restructured loans, which were included in claims, was¥501 million as of March 31, 2024.
i)

Claims against bankrupt and quasi-bankrupt obligors were ¥401 million as of March 31, 2024.

ii)

The Company does not have claims with collection risk as of March 31, 2024.

iii) Delinquent loans three or more months past due were ¥80 million as of March 31, 2024.
iv)

Restructured loans were ¥20 million as of March 31, 2024.

Claims against bankrupt and quasi-bankrupt obligors are claims to obligors who are subject to bankruptcy,
corporate reorganization or rehabilitation or other similar proceedings and other obligors in serious financial
difficulties.
Claims with collection risk are claims to obligors with deteriorated financial condition and results of operations
from which it is unlikely that the principal and interest on the claims will be recovered, excluding those claims
classified as claims against bankrupt and quasi-bankrupt obligors.
Delinquent loans three or more months past due are loans for which interest payments or repayments ofprincipal are delinquent for three months or more from the due dates under the terms of the related loan

25

Asahi Mutual Life Insurance Company

agreements, excluding those claims classified as claims against bankrupt and quasi-bankrupt obligors andclaims with collection risk.
Restructured loans are loans for which certain concessions favorable to borrowers, such as interest reduction
or exemptions, rescheduling of due dates of principal or interest payments, waivers of claim or other terms,
have been negotiated for the purpose of assisting and supporting the borrowers in the restructuring of theirbusinesses. This category excludes claims classified as claims against bankrupt and quasi-bankrupt obligors,
claims with collection risk and delinquent loans three or more months past due.
The direct write-offs related to claims decreased the amounts of claims against bankrupt and quasi-bankrupt
obligors described above by ¥3 million as of March 31, 2024.
7.

Accumulated Depreciation of Tangible Fixed Assets

Accumulated depreciation of tangible fixed assets totaled ¥277,659 million as of March 31, 2024.
8.

Separate Accounts

Total assets in separate accounts provided for in Article 118 of the Insurance Business Act were ¥30,689
million as of March 31, 2024. The amounts of separate account liabilities were the same as separate accountassets.
9.

Receivables from/Payables to Subsidiaries

The total amounts of receivables from/payables to subsidiaries were ¥523 million and ¥5,487 million as ofMarch 31, 2024.
10. Deferred Taxes(1) Deferred tax assets/liabilities were recognized as follows:

Deferred tax assets
Valuation allowance for deferred tax assets
Subtotal
Deferred tax liabilities
Net deferred tax assets (liabilities)

26

Millions of Yen
As ofMarch 31, 2024¥
65,384
12,38253,001
94,388¥(41,386)

Asahi Mutual Life Insurance Company

Major components of deferred tax assets/liabilities were as follows:
Millions of Yen
As ofMarch 31, 2024
Deferred tax assets
Additional policy reserve
Contingency reserve
Reserve for price fluctuation
Reserve for employees’ retirement benefits
Impairment losses
IBNR reserves
Deferred tax liabilities
Net unrealized gains on available-for-sale securities¥

12,942
12,047
11,263
7,866
6,884
4,570

¥

89,235(2) The statutory tax rate was 27.9% for the fiscal year ended March 31, 2024. The main factors causing thedifferences between the statutory tax rates and the actual effective tax rates after considering deferredtaxes were as follows:Year ended
March 31, 2024
(3.4)%(3.4)%

Reserve for dividends to policyholders
Interest on foundation funds(3) The Company has applied the group tax sharing system. As a result, the Company has applied the“Practical Solution on the Accounting and Disclosure Under the Group Tax Sharing System” (ASBJ PITF
No.42, issued on August 12, 2021) to the accounting and disclosure treatment of corporate tax, local
corporate tax and tax effect accounting.
11. Reserve for Dividends to Policyholders

Balance at the beginning of the fiscal year
Transfer to reserve from surplus in the previous fiscal year
Dividends to policyholders paid out during the fiscal year
Increase in interest
Balance at the end of the fiscal year

Millions of Yen
Year ended
March 31, 2024¥
27,103
2,497
3,540
3
¥
26,064

12. Stocks of Subsidiaries and Affiliates
The amount of stocks of subsidiaries and affiliates the Company held was ¥67,671 million as of March 31,
2024.
13. Pledged Assets
Assets pledged as collateral were securities in the amount of ¥315,013 million as of March 31, 2024.

27

Asahi Mutual Life Insurance Company

14. Policy Reserves for the Reinsurance Contracts
Reserve for outstanding claims for the reinsurance contracts provided in accordance with Article 73, Paragraph
3 of the Enforcement Regulation of the Insurance Business Act which applies mutatis mutandis to Article 71,
Paragraph 1 of the Enforcement Regulation of the Insurance Business Act (hereinafter “reserve for outstanding
claims for ceded reinsurance”) was ¥5 million as of March 31, 2024.
Policy reserves for the reinsurance contracts provided in accordance with Article 71, Paragraph 1 of the
Enforcement Regulation of the Insurance Business Act (hereinafter “policy reserves for ceded reinsurance”)
were ¥335 million as of March 31, 2024.
15. Adjustment to Redemption of Foundation Funds and Appropriation of Net Surplus
The total amount of adjustment to redemption of foundation funds and appropriation of net surplus defined in
Article 30, Paragraph 2 of the Enforcement Regulation of the Insurance Business Act was ¥270,879 million asof March 31, 2024.
16. Assets with Rights to Sell
The Company has the legal right to sell or collateralize securities borrowed under loan agreements. The market
value of these assets that were not sold or pledged as collateral as of March 31, 2024 was ¥37,590 million. No
assets were pledged as collateral as of March 31, 2024.
17. Commitment LineAs of March 31, 2024, there were unused commitment line agreements under which the Company is the lenderof ¥9,372 million.
18. Subordinated Bonds Payable
As of March 31, 2024, bonds payable are subordinated bonds payable, for which the repayments aresubordinated to other obligations.
19. Subordinated Loans Payable
As of March 31, 2024, loans payable are subordinated loans payable, for which the repayments aresubordinated to other obligations.
20. Reserve for Employees’ Retirement Benefits(1) Summary of retirement benefit plans
As defined benefit plan, the Company has defined benefit corporate pension plans, which are fundedtype, and lump-sum retirement allowance plans which are non-funded type but resulted in funded type
due to setting of employee pension trust.

28

Asahi Mutual Life Insurance Company

(2) Defined benefit plani)

Reconciliation of beginning and ending balance of retirement benefit obligations

Retirement benefit obligations at the beginning of the fiscal year
Service cost
Interest cost
Actuarial difference occurred during the fiscal year
Retirement benefit payments
Retirement benefit obligations at the end of the fiscal year

ii)

Millions of Yen
Year ended
March 31, 2024¥
38,558
1,718
385
85(3,624)¥
37,123

Reconciliation of beginning and ending balance of pension plan assets
Millions of Yen
Year ended
March 31, 2024
¥
7,399
60
1,117
150
(206)
¥
8,521

Pension plan assets at the beginning of the fiscal year
Expected return on pension plan assets
Actuarial difference occurred during the fiscal year
Contributions by the employer
Retirement benefit payments
Pension plan assets at the end of the fiscal yeariii) Reconciliation of retirement benefit obligation and pension plan assets with reserve for employees’
retirement benefits and prepaid pension cost presented on the non-consolidated balance sheet
Millions of Yen
As ofMarch 31, 2024¥
37,123(8,521)
28,602(886)

a. Funded plan retirement benefit obligationb. Pension plan assetsc. ( a + b )d. Unrecognized actuarial differences
e. Net amount of liabilities and assets presented on the
non-consolidated balance sheet
f. Reserve for employees’ retirement benefits
g. Prepaid pension cost
h. Net amount of liabilities and assets presented on the
non-consolidated balance sheetiv)

27,71528,195(480)¥

27,715

Breakdown of retirement benefit expenses

Service cost
Interest cost
Expected return on pension plan assets
Amortization of actuarial differences
Retirement benefit expenses related to defined benefit plan

29

Millions of Yen
Year ended
March 31, 2024
¥
1,718
385
(60)
936
¥
2,980

Asahi Mutual Life Insurance Company

v)

Breakdown of main pension plan assets
The breakdown of main asset categories as a percentage of pension plan assets was as follows:
As ofMarch 31, 2024
46%
9%
45%
100%

Stocks
Bonds
Others
Total

vi)

Method for determining the expected long-term rate of return
To determine the expected long-term rate of return on pension plan assets, the Company takes into
account the present and future allocation of pension plan assets, and the present and expected future
long-term rate of return on the diverse range of assets that makes up the pension assets.

vii) Underlying actuarial assumptions
The main underlying actuarial assumptions were as follows:

Discount rate
Expected long-term rate of return on pension plan assets
Defined benefit corporate pension plans

III.

Notes to Unaudited Non-consolidated Statement of Income

1.

Transactions with Subsidiaries and Affiliates

As of
March 31, 2024
1.0%
0.8%
1.6%

The total amounts of revenues and expenditures in connection with subsidiaries and affiliates were ¥705
million and ¥10,075 million for the fiscal year ended March 31, 2024.
2.

Investment Income and Expenses

The major components of gains on sales of securities were as follows:

Domestic bonds
Domestic stocks and other securities
Foreign securities

Millions of Yen
Year ended
March 31, 2024¥
3,283
38,913
1,890

30Asahi Mutual Life Insurance Company

The major components of losses on sales of securities were as follows:
Millions of Yen
Year ended
March 31, 2024
¥
5,711
2,209
33,527

Domestic bonds
Domestic stocks and other securities
Foreign securities

The major components of losses on valuation of securities were as follows:
Millions of Yen
Year ended
March 31, 2024¥
104
1

Domestic stocks and other securities
Foreign securities

Losses on trading securities were losses on sales of ¥226 million for the fiscal year ended March 31, 2024.
Losses on derivative financial instruments included net valuation losses of ¥1,824 million for the fiscal year
ended March 31, 2024.
3.

Policy Reserves for the Reinsurance Contracts

Reversal of reserve for outstanding claims for ceded reinsurance, which was deducted in calculating provision
for reserve for outstanding claims for the fiscal year ended March 31, 2024 was ¥11 million.
Reversal of policy reserves for ceded reinsurance, which was deducted in calculating reversal of policy
reserves for the fiscal year ended March 31, 2024 was ¥22 million.
4.

Impairment Losses of Fixed Assets

For the fiscal year ended March 31, 2024, impairment losses of fixed assets by the Company were as follows:(1) Method of grouping
The method of grouping is described in “Note 1. (15) Impairment losses of tangible fixed assets” of the
non-consolidated balance sheet.
(2) Background information on recognizing the impairment losses
As the profitability of certain real estate for rent dropped down significantly due to a decrease in the levelof rental income and a declining trend in the market prices of land, the Company reduced the book valuesof such real estate for rent, real estate not in use and real estate scheduled to be sold to their recoverable
amounts. The write-downs were recognized as impairment losses and included in the extraordinary losses.

31

Asahi Mutual Life Insurance Company

(3) Asset groups for which impairment losses were recognized and losses by classification of fixed assets

Millions of Yen
Year ended
March 31, 2024
Real estate for rent:
Land
Building
Total real estate for rent (i)Real estate not in use:Land
Building
Total real estate not in use (ii)Real estate scheduled to be sold:Land
Building
Total real estate scheduled to be sold (iii)
Total:Land
Building
Total (i) + (ii) + (iii)

¥

562
579
1,141
-

¥

562
579
1,141

(4) Calculation method of recoverable amounts
The recoverable amounts of real estate for rent are determined at net realizable value or value in use. The
recoverable amounts for real estate not in use and real estate scheduled to be sold are net realizable value.
Value in use is determined as the estimated net future cash flows, reflecting the volatility risk, discounted
at 3.2% for the fiscal year ended March 31, 2024. Net realizable value is calculated based on the appraisal
value in accordance with “Real Estate Appraisal Standards” or the publicly announced appraisal value
after deducting expected disposal costs.

32

Asahi Mutual Life Insurance Company

5. Breakdown of Ordinary Profit (Fundamental Profit)

Fundamental profit
Capital gains
Gains on money held in trust
Gains on trading securities
Gains on sales of securities
Gains on derivative financial instruments
Foreign exchange gains
Other capital gains
Capital losses
Losses on money held in trust
Losses on trading securities
Losses on sales of securities
Losses on valuation of securities
Losses on derivative financial instruments
Foreign exchange losses
Other capital losses
Net capital gains (losses)
Fundamental profit plus net capital gains (losses)
Other one-time gains
Reinsurance revenue
Reversal of contingency reserve
Reversal of specific allowance for possible loan losses
OthersOther one-time losses
Reinsurance premiums
Provision for contingency reserve
Provision for specific allowance for possible loan losses
Provision for allowance for specified overseas loans
Write-offs of loans
OthersNet other one-time gains (losses)
Ordinary profit

Ａ

Ｂ
Ａ＋Ｂ

Ｃ
Ａ＋Ｂ＋Ｃ

Year ended
March 31, 2023
13,35734,386
16,115
1,912
16,35844,83425,525114
18,826368(10,448)
2,909
14,77914,77940
40
014,73817,648(Millions of Yen)
Year ended
March 31, 2024
42,301
58,76844,086
4,528
10,15356,563226
41,448105
14,508275
2,204
44,50619,997
19,927
69
46,388046,388(26,391)
18,115

Year ended
March 31, 2023
(15,990)(14,443)(1,915)(Millions of Yen)
Year ended
March 31, 2024
(9,878)(9,203)(950)（Reference） Breakdown of "other" items

Fundamental profit
Hedging costs related to foreign exchange
Gains (losses) on cancellation of investment trusts
Gains (losses) on redemption of securities caused by foreign exchange
fluctuation
Other capital gains
Hedging costs related to foreign exchange
Gains on cancellation of investment trusts
Gains on redemption of securities caused by foreign exchange fluctuation
Other capital losses
Hedging costs related to foreign exchange
Losses on cancellation of investment trusts
Losses on redemption of securities caused by foreign exchange fluctuation
Others in "Other one-time losses"
Provision for policy reserves in accordance with Article 69, Paragraph 5 of
the Enforcement Regulation of the Insurance Business Act

33

368

275

16,35814,443
1,915
368
368
-

10,153
9,203
950
275
275
46,388-46,388Asahi Mutual Life Insurance Company

6．Unaudited Non-consolidated Statements of Changes in Net Assets
Year ended March 31, 2023

(Millions of Yen)
Foundation funds and others
SurplusReserve forFoundation redemption Reserve forfunds
of foundation revaluation
funds

Beginning balance

91,000166,000

Other surplus
Reserve for
future losses

281

347

Equalized
Reserve forreserve for Unappropriated Total surplus
fund
dividends to surplus (loss)
redemption
policyholders

53,500

6,983

Total
foundation
funds andothers56,614

117,444374,726(2,121)(2,121)(2,121)

Changes in the fiscal year:
Additions to reserve fordividends to policyholders
Additions to reserve for future
lossesAdditions to reserve forredemption of foundation funds
Payment of interest on
foundation funds

19
40,000(19)(40,000)(40,000)

Net surplus
Redemption of foundation funds(4,040)(4,040)(4,040)17,257

17,257

17,257(40,000)(40,000)

Additions to reserve for fundredemption
Additions to equalized reservefor dividends to policyholders
Reversal of land revaluationdifferences
Net changes, excluding
foundation funds and others

9,100(9,100)
110

(110)
1,666

1,666

1,666

Net changes in the fiscal year

(40,000)

40,000-19(30,900)

110

3,533

(27,237)(27,237)

Ending balance

51,000206,000

281

366

22,6007,093

60,14890,207

347,489

Valuation and translation adjustments
Net
unrealized
gains (losses)
on availablefor-salesecurities,
net of tax
Beginning balance

173,936Total
Land
valuation andrevaluationtranslationdifferences
adjustments(46,739)

127,197

Total net
assets

501,923

Changes in the fiscal year:
Additions to reserve fordividends to policyholders
Additions to reserve for future
lossesAdditions to reserve forredemption of foundation funds
Payment of interest on
foundation funds(2,121)(4,040)Net surplus

17,257

Redemption of foundation funds(40,000)

Additions to reserve for fundredemption
Additions to equalized reservefor dividends to policyholders
Reversal of land revaluationdifferences
Net changes, excluding
foundation funds and others

1,666(43,268)(1,666)(44,935)(44,935)

Net changes in the fiscal year

(43,268)(1,666)(44,935)(72,172)

Ending balance

130,668(48,406)

82,261

429,751

34

Asahi Mutual Life Insurance Company

Year ended March 31, 2024

(Millions of Yen)
Foundation funds and others
SurplusReserve forFoundation redemption Reserve forfunds
of foundation revaluation
funds

Beginning balance

51,000206,000

Other surplus
Reserve for
future losses

281

366

Equalized
Reserve forreserve for Unappropriated Total surplus
fund
dividends to surplus (loss)
redemption
policyholders

22,600

7,093

Total
foundation
funds andothers60,14890,207

347,489(2,497)(2,497)(2,497)(2,323)(2,323)(2,323)

15,251

15,251

15,251

1,965

1,965

1,965

Changes in the fiscal year:
Additions to reserve fordividends to policyholders
Additions to reserve for future
lossesPayment of interest on
foundation funds

15

(15)

Net surplus
Additions to reserve for fundredemption
Reversal of equalized reservefor dividends to policyholders
Reversal of land revaluationdifferences
Net changes, excluding
foundation funds and others
Net changes in the fiscal year
Ending balance

9,100(9,100)
(199)

199

-

-

-

15

9,100

(199)

3,481

12,396

12,39651,000206,000

281

381

31,700

6,893

63,629102,604

359,886

Valuation and translation adjustments
Net
unrealized
gains (losses)
on availablefor-salesecurities,
net of tax
Beginning balance

130,668

Total
Land
valuation andrevaluationtranslationdifferences
adjustments(48,406)

82,261

Total net
assets429,751

Changes in the fiscal year:
Additions to reserve fordividends to policyholders
Additions to reserve for future
lossesPayment of interest on
foundation funds(2,497)(2,323)
15,251

Net surplus
Additions to reserve for fundredemption
Reversal of equalized reservefor dividends to policyholders
Reversal of land revaluationdifferences
Net changes, excluding
foundation funds and others

1,965
139,929(1,965)

137,964

137,964

Net changes in the fiscal year

139,929(1,965)

137,964

150,361

Ending balance

270,597(50,371)

220,226

580,11235

Asahi Mutual Life Insurance Company

7．Unaudited Non-consolidated Statements of Proposed Appropriation of Surplus(Millions of Yen)

Year ended
March 31, 2023

Year ended
March 31, 2024

60,14863,629

Reversal of voluntary surplus reserves

199

947

Reversal of equalized reserve for dividends to policyholders

199

947

60,34864,577

Appropriation of surplus (loss)

13,935

14,367

Reserve for dividends to policyholders

2,497

2,896

Net surplus (loss)

11,438

11,47015

16Interest on foundation funds

2,323

2,354

Voluntary surplus reserves

9,100

9,100

9,100

9,100

46,41250,210

Unappropriated surplus (loss)

Total

Reserve for future losses

Reserve for fund redemption
Surplus (loss) carried forward

36

Asahi Mutual Life Insurance Company

８．Disclosed Claims Based on Insurance Business Act(Millions of Yen, ％)As of March 31, 2023

As of March 31, 2024

Claims against bankrupt and quasi-bankrupt obligors

386

401

Claims with collection risk

30-

Delinquent loans three or more months past due

8580

Restructured loans

20

20

Subtotal

521

501（Percentage of total）(0.10)(0.08)

Claims against normal obligors

505,064

640,854

Total

505,586

641,356

Notes:
1. Claims against bankrupt and quasi-bankrupt obligors are claims to obligors who are subject to bankruptcy,
corporate reorganization or rehabilitation or other similar proceedings and other obligors in serious financial
difficulties.
2. Claims with collection risk are claims to obligors with deteriorated financial condition and results of operations
from which it is unlikely that the principal and interest on the claims will be recovered, other than the claims
described in note 1. above.
3. Delinquent loans three or more months past due are loans for which interest payments or repayments ofprincipal are delinquent for three months or more from the due dates under the terms of the related loan
agreements, other than the claims described in note 1. or 2. above.
4. Restructured loans are loans for which certain concessions favorable to borrowers, such as interest reduction
or exemptions, rescheduling of due dates of principal or interest payments, waivers of claim or other terms,
have been negotiated for the purpose of assisting and supporting the borrowers in the restructuring of theirbusinesses, other than the claims described in note 1., 2. or 3. above.
5. Claims against normal obligors are all other claims.

37

Asahi Mutual Life Insurance Company

９. Solvency Margin Ratio(Millions of Yen)
As of March 31, 2023 As of March 31, 2024

Total solvency margin（Ａ）

947,464

1,140,199

Foundation funds and surplus

342,668

354,635

Reserve for price fluctuation

38,21040,370Contingency reserve

63,10943,181

345

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

149,490322,616

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

35,03735,824

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

148,266

195,542

Qualifying subordinated debt

199,555

180,609--

Deduction(50,000)(55,000)

Others

20,78021,912203,084

229,298

General allowance for possible loan losses

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

Total amount of risk

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

Insurance risk

R1

11,558

11,229

Third sector insurance risk

R8

10,848

10,821

Risk of assumed yield

R2

64,04952,370

Minimum guarantee risk

R7

1,004

977

Investment riskR3

132,366

169,956

Operational risk

R4

4,396

4,907

933.0%

994.5%

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

Notes:
1. The figures above are calculated based on Articles 86 and 87 of the Enforcement Regulation of the Insurance Business Act
and Japanese Ministry of Finance Public Notice No. 50, 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 thecalculation of solvency 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.

38

Asahi Mutual Life Insurance Company

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

As of March 31, 2023

As of March 31, 2024

AmountAmountIndividual variable insurance

26,43830,689Individual variable annuities--

Group annuity products--

26,43830,689Total（2）Individual Variable Insurance (Separate Account)(ⅰ)Sum Insured of Policies in Force
As of March 31, 2023

As of March 31, 2024

AmountAmountNumber of policies(Thousands)(Millions of Yen)

Number of policies(Thousands)(Millions of Yen)

Individual variable insurance(fixed term)

-

-

-

-

Individual variable insurance(whole life)

12

83,683

11

80,819Total

1283,683

11

80,81939

Asahi Mutual Life Insurance Company

(ⅱ)Breakdown of Separate Account Assets for Individual Variable Insurance(Millions of Yen)

As of March 31, 2023

As of March 31, 2024

AmountPercentage

AmountPercentage

279

1.1

347

1.1

26,19899.1

30,39999.1

Domestic bonds

-

-

-

-

Domestic stocks

-

-

-

-

Foreign securities

-

-

-

-

Foreign bonds

-

-

-

-

Foreign stocks and other foreign securities

-

-

-

-

26,19899.1

30,399

99.1

Loans

-

-

-

-

Others

(39)

(0.2)

(57)

(0.2)

-

-

-

-

26,438100.0

30,689100.0

Cash, deposits, call loans
Securities

Other securities

Allowance for possible loan losses
Total(ⅲ)Investment Income and Expenses of Separate Account for Individual Variable Insurance(Millions of Yen)

Interest, dividends and other income

Year ended
March 31, 2023

Year ended
March 31, 2024

AmountAmount
337

305

3,773

-

-

-

1,274

6,865

Foreign exchange gains

761

Gains on derivative financial instruments--

Other investment income

0

0

2,100

-

0

-

2,836

587

Foreign exchange losses

950

Losses on derivative financial instruments--

Other investment expenses

0

-

429

6,584

Gains on sales of securities
Gains on redemptions of securities
Gains on valuation of securities

Losses on sales of securities
Losses on redemptions of securities
Losses on valuation of securities

Net Investment Income（３）Individual Variable Annuities(Separate Account)

The Company does not have individual variable annuity contracts in force.

40

Asahi Mutual Life Insurance Company

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

Year ended
March 31, 2023

Year ended
March 31, 2024

Ordinary income

671,638

688,735

Ordinary profit

9,791

5,447

Net surplus attributable to the Parent Company

11,513

5,788

Comprehensive income(31,730)

147,232(Millions of Yen)

As of March 31, 2023
Total assets
Solvency margin ratio

41

As of March 31, 2024

5,283,507

5,473,252

979.3%

1,036.2%

Asahi Mutual Life Insurance Company

（2）Unaudited Consolidated Balance Sheets(Millions of Yen)

As of March 31, 2023 As of March 31, 2024
Assets:Cash and deposits
Call loans
Monetary claims bought
Securities
Loans
Tangible fixed assets:
Land
Buildings
Lease assets
Construction in progress
Other tangible fixed assets
Intangible fixed assets:
Software
Other 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
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

42

50,601
166,000
20,292
4,249,612
303,961
360,023
212,541
142,153
1,360
1,062
2,906
38,05324,38013,672
6
26,871
58,965
421
8,745
600
(648)
5,283,507

53,70573,00018,811
4,466,669
321,346354,240
207,428
138,917
4,138
1,188
2,568
40,33133,0747,257
242,415
101,567
799
74
1,025
(738)
5,473,252

4,335,719
36,411
4,272,203
27,103826
150,555
294,447
31,54838,2100
15,062600
4,866,969

4,278,959
41,0604,211,835
26,064
915
102,609407,649
29,29740,37039,226
14,301
1,025
4,914,355

51,000206,000
281
79,001
336,283

51,000206,000
281
81,934339,216

130,668(48,406)(2,104)80,157
96416,537
5,283,507

270,597(50,371)(646)
219,580100
558,896
5,473,252

Asahi Mutual Life Insurance Company

（3）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
Gains on redemption of securities
Foreign exchange gains
Other investment income
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 reserve for outstanding claims
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 redemption of securities
Losses on derivative financial instruments
Provision for allowance for possible loan losses
Depreciation of rental real estate and other assets
Other investment expenses
Operating expenses
Other ordinary expenses
Ordinary profit
Extraordinary gains:
Gains on disposal of fixed assets
Reversal of reserve for price fluctuation
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-current
Income taxes-deferred
Total income taxes
Net surplus
Net surplus attributable to non-controlling interests
Net surplus attributable to the Parent Company

43

Year ended
March 31, 2023
671,638
418,799
143,540
117,878
16,117
98
1,913
7,102
429
109,299
661,847
417,238
110,749
112,411
97,21881,755
15,104
4,389
4,386
3
64,8993,986
25,525114
466
18,82699
5,565
10,313
137,405
37,914
9,791
11,888
1,889
9,999
6,054
2,720
3,289
44
15,625(1,284)
5,343
4,058
11,56653
11,513(Millions of Yen)
Year ended
March 31, 2024
688,735
432,218
182,739
120,438
44,088
4,537
7,091
6,583
73,777683,288414,335
105,475
109,610
79,76687,32032,161
4,651
4,648
3
76,7504,456
22641,449105
275
14,50891
5,337
10,298
149,557
37,994
5,447
5,542
5,542
4,310
906
1,141
2,160
96
5
6,679
6,698
(5,864)
834
5,845
57
5,788

Asahi Mutual Life Insurance Company

（Unaudited Consolidated Statements of Comprehensive Income）
Year ended
March 31, 2023

(Millions of Yen)
Year ended
March 31, 2024

Net surplus

11,566

5,845

Other comprehensive income:(43,296)

141,387

Net unrealized gains (losses) on available-for-sale securities, net of tax(43,270)

139,929

(26)

1,458

Comprehensive income:(31,730)

147,232

Comprehensive income attributable to the Parent Company(31,783)

147,175

53

57

Remeasurements of defined benefit plans

Comprehensive income attributable to non-controlling interests

44

Asahi Mutual Life Insurance Company

（4）Unaudited Consolidated Statements of Cash Flows(Millions of Yen)

I. Cash flows from operating activities
Surplus before income taxes
Depreciation of rental real estate and other assets
Depreciation
Impairment losses
Increase (decrease) in reserve for outstanding claims
Increase (decrease) in policy reserves
Provision for interest on policyholders’ dividend reserves
Increase (decrease) in allowance for possible loan losses
Increase (decrease) in net defined benefit liabilities
Increase (decrease) in reserve for price fluctuation
Interest, dividends and other income(Gains) losses on securities(Gains) losses on derivative financial instruments
Interest expenses
Foreign exchange (gains) losses, net(Gains) losses on tangible fixed assets(Increase) decrease in reinsurance receivables(Increase) decrease in other assets except from investing and financing activities

Increase (decrease) in reinsurance payables
Increase (decrease) in other liabilities except from investing and financing activities

Others, net
SubtotalInterest, dividends and other income received
Interest paid
Dividends to policyholders paid
Income taxes (paid) refunded
Net cash provided by (used in) operating activities
II. Cash flows from investing activities
Proceeds from sales and redemptions of monetary claims bought
Purchases of securities
Proceeds from sales and redemptions of securities
Disbursements for loans
Proceeds from collections of loans
Proceeds from derivative financial instruments
Increase (decrease) in payables under securities borrowing transactions
Others, net①Total of investing activities[I+①]
Purchases of tangible fixed assets
Proceeds from sales of tangible fixed assets
Others, net
Net cash provided by (used in) investing activities
III. Cash flows from financing activities
Proceeds from debt borrowing
Redemption of debt borrowing
Proceeds from issuance of bonds
Redemption of bonds
Redemption of foundation funds
Payment of interest on foundation funds
Dividends paid to non-controlling interests
Others, net
Net cash provided by (used in) financing activities
IV.Net increase (decrease) in cash and cash equivalents
V.Cash and cash equivalents at the beginning of the year
VI. Cash and cash equivalents at the end of the year

45

Year ended March 31, 2023

Year ended March 31, 2024

15,625
5,565
13,4393,289
4,386(93,356)
3
99(1,119)(9,999)(117,878)
9,461
18,826
3,986(1,913)(468)(20,082)(3,867)50
1,680
12,250(160,021)
120,844(3,693)(3,664)(10,344)(56,880)

6,679
5,337
13,247
1,141
4,648(60,368)
3
91
(532)
2,160
(120,438)(8,615)
14,5084,456(4,537)(5,066)(15,544)(3,093)
89
(701)
(476)
(167,010)
117,240(4,572)(3,540)4,115(53,766)

2,199(563,641)
801,416(65,193)
74,249(129,065)
2,698
122,663
65,782(8,232)
4,147(14,332)
104,2451,453(603,314)
597,414(69,782)
57,176(80,705)
66,588(226)(31,395)(85,162)(9,894)
13,497(11,847)(39,641)

10,000(2,000)48,131(40,000)(4,040)(51)(834)
11,20558,570
158,030
216,601

59,400(5,000)(47,946)(2,323)
(52)
(565)
3,512
(89,895)
216,601
126,705

Asahi Mutual Life Insurance Company

（5）Unaudited Consolidated Statements of Changes in Net Assets
Year ended March 31, 2023

(Millions of Yen)
Foundation funds and others

Beginning balance

Foundation
funds

Reserve forredemption offoundation
funds

Reserve forrevaluation

Consolidated
surplusTotal
foundation
funds andothers91,000166,000

281

111,982369,264(2,121)(2,121)

Changes in the fiscal year:
Additions to reserve fordividends to policyholders
Additions to reserve forredemption of foundation funds
Payment of interest on
foundation funds
Net surplus attributable to the
Parent Company
Redemption of foundation funds

40,000(40,000)(4,040)(4,040)11,513

11,513(40,000)(40,000)

Reversal of land revaluationdifferences
Net changes, excluding
foundation funds and others

1,666

1,666

Net changes in the fiscal year

(40,000)

40,000-(32,981)(32,981)

Ending balance

51,000206,000

281

79,001

336,283

Accumulated
remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

Total
net assets(2,077)125,12194

494,480

Accumulated other comprehensive income
Net unrealized
gains (losses) on
available-for-salesecurities,
net of tax

Beginning balance

173,938Land
revaluationdifferences(46,739)

Changes in the fiscal year:
Additions to reserve fordividends to policyholders
Additions to reserve forredemption of foundation funds
Payment of interest on
foundation funds
Net surplus attributable to the
Parent Company(2,121)(4,040)11,513

Redemption of foundation funds
Reversal of land revaluationdifferences
Net changes, excluding
foundation funds and others(40,000)
1,666(43,270)(1,666)(26)(44,963)1(44,962)

Net changes in the fiscal year

(43,270)(1,666)(26)(44,963)1(77,943)

Ending balance

130,668(48,406)(2,104)80,157

96416,537

46

Asahi Mutual Life Insurance Company

Year ended March 31, 2024

(Millions of Yen)
Foundation funds and others

Beginning balance

Foundation
funds

Reserve forredemption offoundation
funds

Reserve forrevaluation

Consolidated
surplusTotal
foundation
funds andothers

51,000206,000

281

79,001

336,283(2,497)(2,497)(2,323)(2,323)

5,788

5,788

1,965

1,965

Changes in the fiscal year:
Additions to reserve fordividends to policyholders
Payment of interest on
foundation funds
Net surplus attributable to the
Parent Company
Reversal of land revaluationdifferences
Net changes, excluding
foundation funds and others
Net changes in the fiscal year
Ending balance

-

-

-

2,933

2,933

51,000206,000

281

81,934339,216

Accumulated other comprehensive income
Net unrealized
gains (losses) on
available-for-salesecurities,
net of tax

Beginning balance

130,668

Total

Land
revaluationdifferences

Accumulated
accumulated
remeasurements
otherof definedcomprehensive
benefit plans

Noncontrollinginterests

Total
net assets

96

416,537

income(48,406)(2,104)80,157

Changes in the fiscal year:
Additions to reserve fordividends to policyholders
Payment of interest on
foundation funds
Net surplus attributable to the
Parent Company
Reversal of land revaluationdifferences
Net changes, excluding
foundation funds and others(2,497)(2,323)
5,788
1,965
139,929(1,965)

1,458

139,4224

139,426

Net changes in the fiscal year

139,929(1,965)

1,458

139,4224

142,359

Ending balance

270,597(50,371)(646)

219,580100

558,896

47

Asahi Mutual Life Insurance Company

I. Presentation of Unaudited Consolidated Financial Statements
1.

Basis of Presentation

The accompanying consolidated financial statements have been prepared from the accounts maintained by
Asahi Mutual Life Insurance Company (the “Company”) and its consolidated subsidiaries in accordance withthe provisions set forth in the Insurance Business Act of Japan and its related rules and regulations applicableto the mutual life insurance industry and in conformity with accounting principles generally accepted in Japan,
which are different in certain respects from accounting principles generally accepted in countries andjurisdictions other than Japan.
In addition, the notes to the consolidated financial statements include information which is not required underaccounting principles generally accepted in Japan but is presented herein as additional information.
Amounts of less than one million yen have been eliminated. As a result, total amounts in yen shown herein do
not necessarily agree with the sum of the individual amounts.
The Insurance Business Act shall prescribe the disclosure of a single fiscal year. The Company provides thedisclosure of comparative financial information corresponding to each comparative fiscal year in the presented
financial statements for use by readers outside Japan.
In preparing the accompanying consolidated financial statements, certain reclassifications have been made to
the consolidated financial statements issued domestically in order to present them in a format which is morefamiliar to readers outside Japan.
2.

Principles of Consolidation(1) Scope of consolidation
The consolidated subsidiaries as of March 31, 2024 are listed below:
Info Techno Asahi Co., Ltd.
Asahi Life Asset Management Co., Ltd.
Asahi Natixis Investment Managers Co., Ltd.
Nanairo Life Insurance Co., Ltd.
The major unconsolidated subsidiary is Asahi Real Estate Management Co., Ltd.
Each non-consolidated subsidiary is small in scale in terms of total assets, amount of sales, net income
and surplus for the fiscal year ended March 31, 2024. As such non-consolidated subsidiaries are notconsidered to materially affect any reasonable determination as to the financial position and result of
operation of the Company’s group, these companies are excluded from the consolidation.

48
Asahi Mutual Life Insurance Company

(2) Application of equity method
Unconsolidated subsidiaries (such as Asahi Real Estate Management Co., Ltd., etc.) are immaterial interms of their impact on consolidated net income and surplus, and also immaterial as a whole, therefore,
the equity method is not applied.
(3) Fiscal year-end of consolidated subsidiaries
The fiscal year-end of the consolidated subsidiaries is March 31.
(4) Amortization of goodwill
Goodwill is fully expensed as incurred.

II.

Notes to Unaudited Consolidated Balance Sheet

1.

Significant Accounting Policies(1) Valuation methods of securities
The valuation of securities, including deposits and monetary claims bought which are equivalent tosecurities is as follows:i)

Trading securities are stated at fair market value. Costs of sales are determined by the moving
average method.

ii)

Held-to-maturity debt securities are stated at amortized cost (straight-line method) determined by
the moving average method.

iii) Policy-reserve-matching bonds, which are in accordance with “Temporary Treatment of Accounting
and Auditing Concerning Policy-reserve-matching Bonds in Insurance Industry” (Industry Audit
Committee Report No. 21 issued by the Japanese Institute of Certified Public Accountants(“JICPA”)), are stated at amortized cost (straight-line method) determined by the moving averagemethod.
iv)

Investments in unconsolidated subsidiaries and affiliates not accounted for under the equity method
are stated at cost.

v)

Available-for-sale securities except for the following are stated at fair market value based on themarket prices at the balance sheet date, of which costs of sales are determined by the moving
average method. Available-for-sale securities, of which public and corporate bonds including
foreign bonds with the difference between acquisition cost and face value considered as an
adjustment of interest, are stated at amortized cost (straight-line method) determined by the moving
average method. Stocks and others without a market price are stated at cost determined by themoving average method. Net unrealized gains or losses on these available-for-sale securities, net oftax, are recorded as a separate component of net assets.

49
Asahi Mutual Life Insurance Company

(2) Policy-reserve-matching bonds
The Company classifies bonds held with the aim of matching the duration to outstanding insurance
liabilities within the sub-groups (categorized by insurance type, investment policy and other factors) ofindividual life insurance and individual annuities as policy-reserve-matching bonds in accordance with
“Temporary Treatment of Accounting and Auditing Concerning Policy-reserve-matching Bonds inInsurance Industry” (Industry Audit Committee Report No. 21 issued by the JICPA).
(3) Valuation methods of derivative financial instruments
Derivative financial instruments are stated at fair market value.
(4) Revaluation of land
The Company revalued the land for business purposes based on the Act on Revaluation of Land (Act No.
34 promulgated on March 31, 1998). The difference between fair value and book value resulting fromthe revaluation, net of related taxes, is recorded as land revaluation differences as a separate componentof net assets and the related tax is recorded as deferred tax liabilities for revaluation.
■

Date of revaluation: March 31, 2001■

Method of revaluation as prescribed for in Article 3, Paragraph 3 of the said Act:The calculation is based on the publicly announced appraisal value with certain adjustments set
forth in Article 2, Item 1 of the Enforcement Ordinance of the Act on Revaluation of Land
(Government Ordinance No. 119 promulgated on March 31, 1998) or the appraisal value
determined by the real-estate appraiser set forth in Article 2, Item 5 of the said Ordinance withcertain reasonable adjustments.

(5) Depreciation of tangible fixed assets
Depreciation of the Company’s tangible fixed assets is calculated by the following methods.
■

Tangible fixed assets (excluding lease assets): Declining-balance method
However, buildings are depreciated using the straight-line method.

■

Lease assets related to finance lease transactions that do not transfer ownership: Straight-line
method over the lease term with no residual value(6) Foreign currency translation
Foreign currency-denominated assets and liabilities (excluding the shares of unconsolidated subsidiaries
and affiliates) are translated into Japanese yen at the effective exchange rate prevailing at the balance
sheet date. The shares of unconsolidated subsidiaries and affiliates are translated into Japanese yen at theexchange rate at the acquisition date.
(7) Allowance for possible loan losses
Allowance for possible loan losses is provided in accordance with the Company’s standards of selfassessment and write-offs and reserves on credit quality:i)

For credit to borrowers who are legally bankrupt such as being in bankruptcy proceedings or civil

50
Asahi Mutual Life Insurance Company

rehabilitation (hereinafter “legally bankrupt borrowers”) and who are substantially bankrupt(hereinafter “substantially bankrupt borrowers”), the Company provides the remaining amount ofcredits after the direct write-off described below and the deductions of the amount expected to becollected through the disposal of collateral or the execution of guarantees.
ii)

For credit to borrowers who are not currently bankrupt but have a high risk of bankruptcy(hereinafter “borrowers with high possibility of bankruptcy”), the Company provides the amounts
deemed as necessary considering the borrowers’ ability to pay, within the amounts after deductionsof the amount expected to be collected through the disposal of collateral or the execution ofguarantees.

iii) For credit to borrowers other than the above, the Company provides the amounts calculated bymultiplying the book value by the actual ratio of bad debt losses on defaults during a certain past
period.
All credit is assessed by the relevant departments in accordance with the Company’s standards of selfassessment on credit quality. The results of the assessment are reviewed by the audit department, whichis independent of business-related divisions. Subsequently, allowance for possible loan losses is provided
based on the results of these assessments.
For consolidated subsidiaries, the Company records the allowance amounts deemed necessary inaccordance mainly with the Company’s standards of self-assessment and write-offs and reserves on credit
quality.
For credit to legally bankrupt borrowers and substantially bankrupt borrowers, the amounts remaining
after deductions of collateral value or the amounts collectible through the execution of guarantees are
written-off directly from the book value as the estimated uncollectible amounts. The amount written-off
was ¥3 million as of March 31, 2024.
(8) Accounting for employees’ retirement benefits and method of amortizing retirement benefit expenses
Net defined benefit liabilities and assets are presented for the employees’ retirement benefits after
deducting pension plan assets from retirement benefit obligations, based on estimated amounts as of thebalance sheet date.
The Company uses the following methods of accounting in relation to retirement benefits.
■

The retirement benefit obligation is attributed to each period by the benefit formula method.

■

Actuarial differences are amortized under the straight-line method over a period of six years starting
the following year.

■

Prior service cost is charged to income when incurred.

(9) Reserve for price fluctuation
Reserve for price fluctuation is calculated in accordance with Article 115 of the Insurance Business Act.
(10) Accounting for hedging activities
Hedging activities are accounted for in accordance with the “Accounting Standards for Financial
Instruments” (Accounting Standards Board of Japan (“ASBJ”) Statement No. 10).

51
Asahi Mutual Life Insurance Company

The Company mainly applies the following hedging accounting:
The Company applies deferred hedge accounting and the exceptional accounting treatment (“Tokureishori”) for interest rate swaps used to hedge the cash flow volatility of certain loans.
The Company also applies fair value hedge accounting for hedging activities related to foreign exchange
rate fluctuation exposures on certain bonds, investment trusts and others denominated in foreign
currencies.
The Company also applies designated hedge accounting (“Furiate-shori”) for currency swaps used tohedge foreign exchange rate fluctuation exposures on the foreign currency-denominated bonds issued by
the Company.
The Company also applies designated hedge accounting (“Furiate-shori”) for the foreign currencydenominated transactions other than the above.
The effectiveness of a hedge is mostly assessed by a ratio analysis, comparing the fluctuations in the fairvalue or cash flows of hedged items and hedging instruments.
(11) Accounting for consumption taxes
The Company and its subsidiaries account for consumption tax and local consumption tax by the taxexclusion method. The consumption taxes on certain assets, which are not deductible from consumption
taxes withheld and that are stipulated to be deferred under the Corporation Tax Act of Japan, are deferred
as prepaid expenses and amortized equally over five years.
Consumption taxes other than deferred consumption taxes are recognized as an expense when incurred.
(12) Premium and other income (excluding reinsurance revenue)
Premium and other income (excluding reinsurance revenue) are recorded in principle for insurance
policies for which insurance premium has been received and the insurer’s liability under the insurance
policies or insurance coverage period has commenced by the relevant amounts received.
Of insurance premiums, the portion corresponding to the period that has yet to pass as of the end of the
fiscal year is set aside as policy reserves in accordance with Article 116 of the Insurance Business Act
and Article 69, Paragraph 1, Item 2 of the Enforcement Regulation of the Insurance Business Act.
(13) Reinsurance revenue
Reinsurance revenue is recorded as reinsurance claims and others received based on the proportion cededin reinsurance and others stipulated in the reinsurance contracts in the reporting period when the income
and expenditure for ceded insurance policies (hereinafter “reinsurance ceded”) are recorded.
For modified coinsurance, ceding commissions which are received as part of amounts equivalent to newpolicy acquisition costs for reinsurance ceded are recorded as reinsurance revenue, while the sameamounts are recorded as reinsurance receivables as unamortized ceding commissions and amortized overthe period of the reinsurance contracts.
(14) Claims and other payments (excluding reinsurance premiums)
Claims and other payments (excluding reinsurance premiums) are recorded for insurance policies for

52
Asahi Mutual Life Insurance Company

which amounts calculated under policy conditions have been paid in the occurrence of insured events
under the policy conditions.
In accordance with Article 117 of the Insurance Business Act and Article 72 of the Enforcement
Regulation of the Insurance Business Act, reserve for outstanding claims is set aside for claims, etc.
which is not recorded as payment of claims, etc. but for which the Company has payment obligation or
the occurrence of insured events has not been reported but the Company finds that insured events havealready occurred, as of the end of the fiscal year.
With respect to reserve for outstanding claims incurred but not reported events (referring to claims forwhich the occurrence of the insured events has not been reported but the Company finds that insured
events have already occurred; hereinafter the same), the special treatment of the payment of
hospitalization benefits with regard to people with diagnoses of COVID-19 given and under the care ofa doctor and the like at an accommodation facility or at home (“deemed hospitalizations”) was terminatedon May 8, 2023. As a result of this change, an appropriate amount of reserves cannot be obtained withthe calculation method set forth in the main rules in Article 1, Paragraph 1 of the Japanese Ministry of
Finance Public Notice No.234, 1998 (“IBNR Notice”). The Company therefore records the amount thatwas calculated using the following method, pursuant to provisions in the proviso of Article 1, Paragraph
1 of IBNR Notice (the “Proviso”).
(Overview of the calculation method)
The Company calculates the amount of reserve for outstanding claims incurred but not reported eventsusing the same manner as that set forth in the main rules in Article 1, Paragraph 1 of IBNR Notice,excluding the amount related to deemed hospitalizations from a required amount of reserves for incurred
but not reported events and the amount of claim payments for all the fiscal year, as set forth in the main
rules in Article 1, Paragraph 1 of IBNR Notice.
In the fiscal year ended March 31, 2023, the Company calculated the reserve for outstanding claims
incurred but not reported events for deemed hospitalizations and the others separately; however, thespecial treatment of the payment of hospitalization benefits with regard to deemed hospitalization was
terminated for the fiscal year ended March 31, 2024. Therefore, the Company revised its methodology
to calculate the amount of reserve for outstanding claims incurred but not reported events for deemedhospitalizations as zero.
(15) Reinsurance premiums
Reinsurance premiums are recorded as reinsurance premiums paid based on the proportion ceded inreinsurance and others stipulated in the reinsurance contracts in the reporting period when the income
and expenditure for reinsurance ceded are recorded.
Part of policy reserves and reserve for outstanding claims corresponding to insurance policies which havebeen reinsured is not set aside in accordance with Article 71, Paragraph 1 and Article 73, paragraph 3 ofthe Enforcement Regulation of the Insurance Business Act.
(16) Policy reserves
Policy reserves are calculated as stated in accordance with the methods stated in the statement ofcalculation procedures for insurance premiums and policy reserves (Article 4, Paragraph 2, Item 4 of the
Insurance Business Act) pursuant to Article 116, Paragraph 1 of the Insurance Business Act, for insurance
policies under which the insurer’s liability has started as of the end of the fiscal year, in preparation for
53
Asahi Mutual Life Insurance Company

the performance of future obligations under the insurance policies.
Of policy reserves, the premium reserves at the end of the fiscal year are calculated by the following
method:In regard to the policies subject to the standard policy reserves, the method as prescribed by theCommissioner of Financial Services Agency (Japanese Ministry of Finance Public Notice No. 48, 1996)
is applied.
In regard to the policies not subject to the standard policy reserves, the net level premium method isapplied.
As of March 31, 2024, the Company accumulated additional policy reserves for individual annuity
insurance policies with an assumed rate of 3.75% or higher for which annuity payment commenced onor before March 31, 2024 in accordance with the provision of Article 69, Paragraph 5 of the Enforcement
Regulation of the Insurance Business Act.
As a result, policy reserves increased by ¥46,388 million and ordinary profits and surplus before income
taxes decreased by ¥46,388 million compared with if the additional reserves had not been accumulataed.
Regarding policy reserves, the chief actuary checks that policy reserves are appropriately accumulated
in each fiscal year, pursuant to Article 121, Paragraph 1 of the Insurance Business Act and Article 80 of
the Enforcement Regulation of the Insurance Business Act.
Contingency reserves included in policy reserves are set aside in accordance with Article 116 of the
Insurance Business Act and Article 69, Paragraph 1, Item 3 of the Enforcement Regulation of the
Insurance Business Act to cover risks that may accrue in the future in order to ensure the performance of
future obligations under insurance policies.
(17) Impairment losses of tangible fixed assets
Impairment losses of the Company’s tangible fixed assets are calculated by the following method.
i)

Calculation method
Real estate and other assets used for insurance business operations are classified as one asset groupas a whole. Other assets such as real estate for rent, real estate not in use and real estate scheduled
to be sold are classified as one group individually. As for real estate used for multiple purposes, theasset group to which the real estate belongs is decided depending on usage rate and others.
The Company identifies indications of impairment on each asset group when earnings frombusiness operations using the asset group continuously become negative.
As for asset groups for which indications of impairment are identified, when total amounts ofundiscounted net future cash flows from the asset groups are less than their book values, theCompany recognizes impairment losses and reduces the book values to their recoverable amounts.
The recoverable amounts of real estate and other assets for insurance business operation and realestate for rent are determined at value in use or net realizable value. The recoverable amounts ofreal estate not in use and real estate scheduled to be sold are determined at net realizable value.
Value in use is determined as the discounted present value of estimated net future cash flows anddiscount rate used in the calculation is based on the cost of capital of the Company.

54
Asahi Mutual Life Insurance Company

Net realizable value is calculated based on the appraisal value in accordance with “Real EstateAppraisal Standards” or the publicly announced appraisal value after deducting expected disposal
costs.
ii)

Key assumptions
Key assumptions for the estimated net future cash flows which are used in recognizing impairment
losses and calculating value in use are usage plans considering current status of use of asset groups,
including tenancy rates, rents and others. These assumptions may be affected by economic conditionand changes specific to asset groups.

iii) Effects on financial statements for the following fiscal year
While the Company considers key assumptions for the estimated net future cash flows which areused in recognizing impairment losses and calculating value in use are best estimate based on
available information including external information, impairment losses may occur in the following
fiscal year due to future uncertainties.
Furthermore, the appraisal value in accordance with “Real Estate Appraisal Standards” may beaffected by future real estate market trends. In case that net realizable value decreases as a result,
impairment losses may occur in the following fiscal year.
(18) Software
Capitalized software for internal use owned by the Company and its subsidiaries (included in intangible
fixed assets in the consolidated balance sheets) is amortized using the straight-line method over theestimated useful lives.
2.

Financial Instruments

Asset management of the general accounts other than the separate accounts stipulated in Article 118, Paragraph
1 of the Insurance Business Act is conducted based on the following principles.
■

For accumulation whole life with variable interest rates, accumulation insurance with variable interest
rates and new single premium individual annuities which have an effective date on or after April 2, 2012,
the Company mainly invests in domestic bonds, engaging in matching asset liability management, orMatching ALM, which aims at matching the duration to outstanding insurance liabilities to avoid interest
rate fluctuation risks.

■

For individual life insurance and individual annuities other than above, the Company holds yendenominated fixed income investments, including bonds and loans, as the core of its asset portfolio. The
Company also holds domestic stocks, foreign securities and real estate assets to enhance its profitability.

Derivatives are mainly used to hedge market price fluctuation risk and exchange rate fluctuation risk regarding
securities and exchange rate fluctuation risk related to the foreign currency-denominated bonds issued by theCompany. As the major financial instruments, securities are exposed to market risk and credit risk, loans are
exposed to credit risk and exchange rate fluctuation risk, and derivatives are exposed to market risk and credit
risk.

55
Asahi Mutual Life Insurance Company

In managing market risks, the following two methods are used. One is the quantitative risk management of
securities etc. using the Value at Risk (“VaR”) method and the other is the risk management by stress test andsensitivity analysis which analyze the effect on the Company’s whole portfolio, simulating scenarios ofdeteriorating market environments. This is for the purpose of managing an appropriate asset allocation within
the ranges of acceptable risks.
In managing credit risks, the Company quantifies the credit risks of entire portfolio through VaR method andcontrols the amount of risks within an acceptable range. Furthermore, the Company assigns in-house credit
ratings to our borrowers in accordance with the creditworthiness of each borrower. Strict credit research ofeach borrower before lending as well as following up on any changes of creditworthiness of each borrower
after lending are implemented by Risk Management Department, which is independent of the departments
executing investments and lending. Maximum limits of credit are set up for each borrower in accordance with
its credit risks to avoid the concentration of credit risks on specific corporations and specific corporationgroups. Through all these measures, the Company endeavors to develop high quality portfolio.
The balance sheet amounts, fair values and the differences between those of major financial assets andliabilities as of March 31, 2024 were as follows. The following table does not include cash and deposits, callloans and payables under securities borrowing transactions which are mostly settled in a short term and theirfair values approximate their book values.
Millions of Yen
As of March 31, 2024
Monetary claims bought
Held-to-maturity debt securities
Available-for-sale securities
Securities
Trading securities
Held-to-maturity debt securities
Policy-reserve-matching bonds
Available-for-sale securities
Loans
Policy loans
Industrial and consumer loans
Total assets
Bonds payable
Loans payable
Total liabilities
Derivative financial instruments
Hedge accounting not applied
Hedge accounting applied

Balance Sheet
Amount¥18,811
17,956855
4,385,592
30,399274,840
2,240,383
1,839,968
321,346
28,399292,946
4,725,750
102,609
103,400
206,009(4,107)(876)(3,231)

Fair Value¥

19,75318,897855
4,276,909
30,399290,260
2,116,280
1,839,968
329,278
28,399300,879
4,625,941
103,456
108,167
211,624(4,107)(876)(3,231)

Difference
¥

941
941
(108,683)
15,419(124,103)
7,932
7,932
(99,809)
847
4,767
5,615
-

* Assets and liabilities generated by derivative financial instruments are offset and presented net.
Net liabilities in total are presented in parentheses.

Unlisted stocks and others, including investments in subsidiaries and affiliates, without market prices are notincluded in the table above. The amounts of the unlisted stocks and others, including investments in
subsidiaries and affiliates, reported in the consolidated balance sheet was ¥21,431 million as of March 31,
2024.

56
Asahi Mutual Life Insurance Company

Investment trusts which are accounted for in accordance with Paragraph 24-3 and 24-9 of “Implementation
Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No. 31, revised on June 17,2021) are included in the table above.
Investments in partnerships and others which are accounted for in accordance with Paragraph 24-16 of“Implementation Guidance on Accounting Standard for Fair Value Measurement” are not included in the table
above. The amount of the investments in partnerships and others, reported in the consolidated balance sheet
was ¥59,645 million as of March 31, 2024.
3.

Matters Concerning Fair Value of Major Financial Instruments and Breakdown by Input Level

Fair values of financial instruments are categorized into the following three levels in accordance with theobservability and significance of the inputs used to measure the fair value.
Level 1: Fair values measured by unadjusted quoted prices in active markets for identical assets or liabilities
Level 2: Fair values measured by inputs which are directly or indirectly observable other than Level 1 inputs
Level 3: Fair values measured by significant unobservable inputs
When several inputs that have significant impact on fair value measurement are used and those inputs are
categorized into different levels, the fair value is categorized into the lowest priority level for fair value
measurement among the levels in which each of the inputs belongs.
(1) Financial assets and liabilities recorded at fair values on the consolidated balance sheet

As of March 31, 2024
Monetary claims bought
Available-for-sale securities
Securities *1
Trading securities
OthersAvailable-for-sale securities
National government bonds andlocal government bonds
Corporate bonds
Domestic stocks
Foreign bonds
OthersTotal assets
Derivative financial instruments *2
Currency-related
Stock-related

Millions of Yen
Fair Value
Level 1
Level 2
Level 3
Total
¥
- ¥
- ¥
855 ¥
855
855
855
621,493
1,050,162
32,062
1,703,718
30,39930,39930,39930,399621,493
1,019,763
32,062
1,673,319
13,196
518,771
89,525
621,493-650
424,486
387,089
207,536
1,050,162(4,109)(4,109)-32,062
32,9181
1

13,847424,486
518,771
419,152
297,061
1,704,574(4,107)(4,109)1*1

Investment trusts which are accounted for in accordance with Paragraph 24-3 and 24-9 of“Implementation Guidance on Accounting Standard for Fair Value Measurement” are not includedin the table above. The amount of the investment trusts which are accounted for in accordancewith Paragraph 24-3 of the implementation guidance, reported in the consolidated balance sheet
was \161,421 million as of March 31, 2024. The amount of the investment trusts which areaccounted for in accordance with Paragraph 24-9 of the implementation guidance, reported in the
consolidated balance sheet was \5,227 million as of March 31, 2024.

*2

Assets and liabilities generated by derivative financial instruments are offset and presented net.
Net liabilities in total are presented in parentheses.
57
Asahi Mutual Life Insurance Company

i)Investment trusts which are accounted for in accordance with Paragraph 24-3 and 24-9 of“Implementation Guidance on Accounting Standard for Fair Value Measurement”
a)Reconciliation between the beginning and ending balance, and net unrealized gains (losses)
recognized as gains (losses) for the fiscal year, of the investment trusts which are accounted
for in accordance with Paragraph 24-3 of “Implementation Guidance on Accounting Standard
for Fair Value Measurement”

Beginning balance
Gains (losses) and other comprehensive income for the
fiscal year:
Gains (losses) recorded for the fiscal year *1
Other comprehensive income recorded for the fiscal year *2
Net amount of purchase, sale, and redemption
Amount of investment trusts whose NAV is deemed as
market value
Amount of investment trusts whose NAV is not deemed as
market value
Ending balance
Net unrealized gains (losses) on investment trusts held at thebalance sheet date among the amount recorded to gains (losses)
for the fiscal year *1

Millions of Yen
Year ended
March 31, 2024¥
134,005
11,912
1,040
10,871
15,504
161,4211,040*1 Those amounts are included in investment income and investment expenses in the
consolidated statement of income.
*2 Those amounts are included in net unrealized gains (losses) on available-for-sale securities,
net of tax in other comprehensive income in the consolidated statement of comprehensive
income.

b)

Breakdown of balance by restriction on cancellation as of the end of the fiscal year
Millions of Yen
As ofMarch 31, 2024
Investment trusts which need more than 1 month to cancel fromthe notification of cancellation
Other than above¥

41,015
120,406

58
Asahi Mutual Life Insurance Company

c)Reconciliation between the beginning and ending balance, and net unrealized gains (losses)
recognized as gains (losses) for the fiscal year, of the investment trusts which are accounted
for in accordance with Paragraph 24-9 of “Implementation Guidance on Accounting Standard
for Fair Value Measurement”

Beginning balance
Gains (losses) and other comprehensive income for the
fiscal year:
Gains (losses) recorded for the fiscal year *1
Other comprehensive income recorded for the fiscal year *2
Net amount of purchase, sale, and redemption
Amount of investment trusts whose NAV is deemed as
market value
Amount of investment trusts whose NAV is not deemed as
market value
Ending balance
Net unrealized gains (losses) on investment trusts held at thebalance sheet date among the amount recorded to gains (losses)
for the fiscal year *1

Millions of Yen
Year ended
March 31, 2024
¥
5,196
26
26
4
5,227
-

*1 Those amounts are included in investment income and investment expenses in the
consolidated statement of income.
*2 Those amounts are included in net unrealized gains (losses) on available-for-sale securities,
net of tax in other comprehensive income in the consolidated statement of comprehensive
income.

(2) Financial assets and liabilities not recorded at fair values on the consolidated balance sheet

As of March 31, 2024
Monetary claims bought
Held-to-maturity debt securities
Securities
Held-to-maturity debt securities
National government bonds andlocal government bonds
Corporate bonds
Foreign bonds
Policy-reserve-matching bonds
National government bonds andlocal government bonds
Corporate bonds
Loans
Policy loans
Industrial and consumer loans
Total assets
Bonds payable
Loans payable
Total liabilities

Millions of Yen
Fair Value
Level 1
Level 2
Level 3
Total¥
- ¥18,517 ¥379 ¥18,897
18,517379
18,8971,737,193
480,660
188,687
2,406,541
35,50066,072
188,687
290,260
35,5001,701,692

66,072
414,587

188,687-

35,50066,072
188,687
2,116,280

1,701,692
1,737,193-

43,183
371,404
499,177
103,456
103,456

329,278
28,399300,879
518,346
108,167
108,167

1,744,876
371,404
329,278
28,399300,879
2,754,717
103,456
108,167
211,624

59
Asahi Mutual Life Insurance Company

(3) Description of the evaluation methods and inputs used to measure fair valuei)Securities including monetary claims bought which are treated as securities based on “AccountingStandard for Financial Instruments” (ASBJ Statement No. 10)
Fair values of securities for which unadjusted quoted market prices in active markets are available
are categorized as Level 1, which mainly include listed stocks, listed investment trusts andgovernment bonds. In the case the market is inactive even if the quoted market price is available,
those securities are categorized as Level 2, which mainly include corporate bonds and foreign bonds.
In the case the quoted market price is not available, fair values are measured by evaluation methods
such as discounting future cash flows. In evaluation, the Company maximizes the use of observable
inputs including swap rates, interest rate swap spreads, currency basis and others. When significant
unobservable inputs are used to measure fair values, those securities are categorized as Level 3.
The fair value of unlisted investment trusts, which have no restriction on cancellation that issignificant enough to require compensation for risk from market participants, are based on thequoted prices and others offered by counterparty financial institutions and categorized as level 2.

ii)

Loans
As credit exposure for policy loans without specific repayment periods is limited to the amount of
the cash surrender value, the Company considers book value as fair value with assumption that fairvalue approximates book value in light of factors such as projected repayment period and interest
terms. Policy loans are categorized as level 3.
As for industrial and consumer loans, the fair value of loans is stated at theoretical prices calculatedby discounting the future cash flows to the present value by type of loan, using market interest rates
with some adjustments based on internal credit rating. Industrial and consumer loans are categorized
as level 3. The fair value of loans to legally bankrupt borrowers, substantially bankrupt borrowers
and borrowers with high possibility of bankruptcy is stated at the amounts by deducting estimatedlosses from the book value before direct write-offs. Loans to legally bankrupt borrowers,
substantially bankrupt borrowers and borrowers with high possibility of bankruptcy are categorized
as level 3.

iii) Bonds payable
The fair value of bonds payable issued by the Company is stated at fair market value. Bonds payableissued by the Company are categorized as level 2. The fair value of bonds payable for which
designated hedge accounting (“Furiate-shori”) for currency swaps are applied is stated at fair market
value added by the fair value of currency swaps. The Company adopts prices obtained from external
information venders as the fair value of currency swaps.
iv)

Loans payableAs for loans payable, the fair value of loans is stated at theoretical prices calculated by discounting
the future cash flows to the present value, using market interest rates with some adjustments basedon the Company’s credit risk. Loans payable are categorized as level 3.

v)

Derivative financial instruments
As for derivative financial instruments, the fair values of foreign currency forward contracts are60
Asahi Mutual Life Insurance Company

stated at theoretical prices calculated by the Company based on the TTM at the balance sheet date.
The fair values of currency options, stock options and interest rate swaptions are stated at the quoted
prices offered by counterparty financial institutions.
In evaluation of derivative financial instruments, the Company maximizes the use of observable
inputs. In the case unobservable inputs are not used or impact of unobservable inputs are notmaterial, derivative financial instruments are categorized as level 2. In the case significant
unobservable inputs are used, derivative financial instruments are categorized as level 3.
(4) Quantitative information about financial assets and liabilities measured and stated in the consolidatedbalance sheet at fair value and categorized as Level 3i)Quantitative information on significant unobservable inputs
Quoted prices obtained from third parties are used for fair values categorized as level 3 without
adjustment.

ii)

Reconciliation between the beginning and ending balance, and net unrealized gains (losses)
recognized as gains (losses) for the fiscal year

Year ended March 31, 2024

Beginning balance
Gains (losses) and other comprehensive
income for the fiscal year:
Gains (losses) recorded for the
fiscal year *1
Other comprehensive income
recorded for the fiscal year *2
Net amount of purchase, sale, issue,
and settlement
Transfer to fair values of Level 3
Transfer from fair values of Level 3
Ending balance
Net unrealized gains (losses) on financial
assets and liabilities held at the balance
sheet date among the amount recorded
to gains (losses) for the fiscal year *1

Millions of Yen
Monetary
Derivative
Securities
claims bought
financial
Total
Available-for- Available-forinstruments(i) + (ii)sale securities sale securities
Stock-related
OthersForeign bonds
(i)
（ii）
¥
897 ¥
64,899 ¥65,796 ¥550(24)

12,396

12,371

1,245

(20)

4,535

4,515

1,245

(4)

7,860

7,856

-

(16)
855

(45,233)
32,062(45,249)
32,198(1,794)
1

(20)

4,535

4,515

(681)

*1 Those amounts are included in investment income and investment expenses in the consolidated statement ofincome.
*2 Those amounts are included in net unrealized gains (losses) on available-for-sale securities, net of tax in othercomprehensive income in the consolidated statement of comprehensive income.

iii) Description of the fair value evaluation process
The Company establishes policies and procedures for measuring the fair value in the actuarial andaccounting department and the risk management department. In accordance with these policies and61
Asahi Mutual Life Insurance Company

procedures, the risk management department measures the fair value. The validity of the evaluation
methods and inputs used to measure fair value and the appropriateness of categorization of fairvalue are verified in the independent division in the risk management department.
In fair value measurement, valuation models in which the nature, characteristics and risks ofindividual assets are most appropriately reflected are used. In addition, when quoted prices obtained
from third parties are used, the validity of the prices is verified by appropriate methods such asconfirmation of evaluation method and used inputs and comparison with the fair values of similar
financial instruments.
4.

Investments and Rental Properties

The Company holds investment and rental properties such as office buildings in Tokyo and other areas. The
carrying amount and the fair value of investment and rental properties were ¥232,502 million and ¥286,956
million as of March 31, 2024. The fair value is mainly based on the value (including some adjustments using
the reference prices) of real estate appraisal report prepared by the external real-estate appraiser in accordancewith real estate appraisal standards.
5.

Securities Lent under Lending Agreements

The amount of securities lent under lending agreements was ¥292,339 million as of March 31, 2024.
6.

Claims

The total amount of claims against bankrupt and quasi-bankrupt obligors, claims with collection risk,delinquent loans three or more months past due and restructured loans, which were included in claims, was¥501 million as of March 31, 2024.
i)

Claims against bankrupt and quasi-bankrupt obligors were ¥401 million as of March 31, 2024.

ii)

The Company does not have claims with collection risk as of March 31, 2024.

iii) Delinquent loans three or more months past due were ¥80 million as of March 31, 2024.
iv)

Restructured loans were ¥20 million as of March 31, 2024.

Claims against bankrupt and quasi-bankrupt obligors are claims to obligors who are subject to bankruptcy,
corporate reorganization or rehabilitation or other similar proceedings and other obligors in serious financial
difficulties.
Claims with collection risk are claims to obligors with deteriorated financial condition and results of operations
from which it is unlikely that the principal and interest on the claims will be recovered, excluding those claims
classified as claims against bankrupt and quasi-bankrupt obligors.
Delinquent loans three or more months past due are loans for which interest payments or repayments ofprincipal are delinquent for three months or more from the due dates under the terms of the related loan
agreements, excluding those claims classified as claims against bankrupt and quasi-bankrupt obligors andclaims with collection risk.
Restructured loans are loans for which certain concessions favorable to borrowers, such as interest reduction
or exemptions, rescheduling of due dates of principal or interest payments, waivers of claim or other terms,

62
Asahi Mutual Life Insurance Company

have been negotiated for the purpose of assisting and supporting the borrowers in the restructuring of theirbusinesses. This category excludes claims classified as claims against bankrupt and quasi-bankrupt obligors,
claims with collection risk and delinquent loans three or more months past due.
The direct write-offs related to claims decreased the amounts of claims against bankrupt and quasi-bankrupt
obligors described above by ¥5 million as of March 31, 2024.
7.

Accumulated Depreciation of Tangible Fixed Assets

Accumulated depreciation of tangible fixed assets totaled ¥278,094 million as of March 31, 2024.
8.

Separate Accounts

Total assets in separate accounts provided for in Article 118 of the Insurance Business Act were ¥30,689
million as of March 31, 2024. The amounts of separate account liabilities were the same as separate accountassets.
9.

Reserve for Dividends to Policyholders

Balance at the beginning of the fiscal year
Transfer to reserve from surplus in the previous fiscal year
Dividends to policyholders paid out during the fiscal year
Increase in interest
Balance at the end of the fiscal year

Millions of Yen
Year ended
March 31, 2024¥
27,103
2,497
3,540
3
¥
26,064

10. Stocks of Unconsolidated Subsidiaries and affiliates
The amount of stocks of unconsolidated subsidiaries and affiliates the Company held was ¥8,232 million asof March 31, 2024.
11. Pledged Assets
Assets pledged as collateral were securities in the amount of ¥315,013 million as of March 31, 2024.
12. Unamortized Ceding Commissions
The amount of unamortized ceding commissions for reinsurance contracts stipulated in Article 1, Paragraph 5of the Japanese Ministry of Finance Public Notice No. 50, 1996 was ¥41,821 million for the fiscal year ended
March 31, 2024.
13. Assets with Rights to Sell
The Company has the legal right to sell or collateralize securities borrowed under loan agreements. The market
value of these assets that were not sold or pledged as collateral was ¥37,590 million as of March 31, 2024. No
assets were pledged as collateral as of March 31, 2024.
63
Asahi Mutual Life Insurance Company

14. Commitment LineAs of March 31, 2024, there were unused commitment line agreements under which the Company is the lenderof ¥9,372 million.
15. Subordinated Bonds Payable
As of March 31, 2024, bonds payable are subordinated bonds payable, for which the repayments aresubordinated to other obligations.
16. Subordinated Loans Payable
As of March 31, 2024, other liabilities included subordinated loans payable of ¥78,000 million, for which therepayments are subordinated to other obligations.
17. Deferred Taxes(1) Deferred tax assets/liabilities were recognized as follows:
Millions of Yen
As ofMarch 31, 2024¥
69,326
13,961
55,364
94,516¥(39,151)

Deferred tax assets
Valuation allowance for deferred tax assets
Subtotal
Deferred tax liabilities
Net deferred tax assets (liabilities)

Major components of deferred tax assets/liabilities were as follows:
Millions of Yen
As ofMarch 31, 2024
Deferred tax assets
Additional policy reserve
Contingency reserve
Reserve for price fluctuation
Net defined benefit liabilities
Impairment losses
IBNR reserves
Deferred tax liabilities
Net unrealized gains on available-for-sale securities¥

12,942
12,702
11,263
8,173
6,884
5,741

¥

89,235(2) The statutory tax rate was 27.9% for the fiscal year ended March 31, 2024. The main factors causing thedifferences between the statutory tax rates and the actual effective tax rates after considering deferredtaxes were as follows:Year ended
March 31, 2024
(9.8)%(9.8)%

Reserve for dividends to policyholders
Interest on foundation funds

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Asahi Mutual Life Insurance Company

(3) The Company and part of its subsidiaries have applied the group tax sharing system. As a result, theCompany has applied the “Practical Solution on the Accounting and Disclosure Under the Group Tax
Sharing System” (ASBJ PITF No.42, issued on August 12, 2021) to the accounting and disclosure
treatment of corporate tax, local corporate tax and tax effect accounting.
18. Accrued Retirement Benefits and Net Defined Benefit Liabilities(1) Summary of retirement benefit plans
As defined benefit plan, the Company and its consolidated subsidiaries have defined benefit corporate
pension plans, which are funded-type, and lump-sum retirement allowance plans which are non-fundedtype but resulted in funded type due to setting of employee pension trust.
(2) Defined benefit plani)

Reconciliation of beginning and ending balance of retirement benefit obligations

ii)

Millions of Yen
Year ended
March 31, 2024
Retirement benefit obligations at the beginning of the fiscal year¥
39,538Service cost
1,808Interest cost
389
Actuarial difference occurred during the fiscal year
78
Retirement benefit payments(3,659)Retirement benefit obligations at the end of the fiscal year¥
38,157
Reconciliation of beginning and ending balance of pension plan assets

Pension plan assets at the beginning of the fiscal year
Expected return on pension plan assets
Actuarial difference occurred during the fiscal year
Contributions by the employer
Retirement benefit payments
Pension plan assets at the end of the fiscal year

Millions of Yen
Year ended
March 31, 2024
¥
8,411
80
1,163
245
(241)
¥
9,659

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Asahi Mutual Life Insurance Company

iii) Reconciliation of retirement benefit obligation and pension plan assets with net defined benefit
liabilities and assets presented on the consolidated balance sheet
Millions of Yen
As ofMarch 31, 2024¥
38,157(9,659)a. Funded plan retirement benefit obligationb. Pension plan assets
c. Net amount of liabilities and assets presented on the
consolidated balance sheet
d. Net defined benefit liabilities
e. Net defined benefit assets
f. Net amount of liabilities and assets presented on the
consolidated balance sheetiv)

28,49729,297(799)¥

Breakdown of retirement benefit expenses

Service cost
Interest cost
Expected return on pension plan assets
Amortization of actuarial differences
Retirement benefit expenses related to defined benefit planv)

28,497

Millions of Yen
Year ended
March 31, 2024
¥
1,808
389
(80)
942
¥
3,060

Breakdown of items included in other comprehensive income
The breakdown of items included in other comprehensive income (before tax effects) was asfollows:
Millions of Yen
Year ended
March 31, 2024
¥
2,027
¥
2,027

Amortization of actuarial differences
Total

vi)

Breakdown of items included in accumulated other comprehensive income
The breakdown of items included in total accumulated other comprehensive income (before tax
effects) was as follows:
Millions of Yen
Year ended
March 31, 2024
¥
896
¥
896

Unrecognized actuarial differences
Total

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Asahi Mutual Life Insurance Company

vii) Breakdown of main pension plan assets
The breakdown of main asset categories as a percentage of pension plan assets was as follows:
As ofMarch 31, 2024
43%
17%
40%
100%

Stocks
Bonds
OthersTotalviii) Method for determining the expected long-term rate of return
To determine the expected long-term rate of return on pension plan assets, the Company takes into
account the present and future allocation of pension plan assets, and the present and expected future
long-term rate of return on the diverse range of assets that makes up the pension assets.
ix)

Underlying actuarial assumptions
The main underlying actuarial assumptions were as follows:

Discount rate
Expected long-term rate of return on pension plan assets
Defined benefit corporate pension plans

As ofMarch 31, 2024
1.0%
0.8%
1.6%

III. Notes to Unaudited Consolidated Statement of Income
1.

Investment Income and Expenses

The major components of gains on sales of securities were as follows:

Domestic bonds
Domestic stocks and other securities
Foreign securities

Millions of Yen
Year ended
March 31, 2024¥
3,283
38,914
1,890

The major components of losses on sales of securities were as follows:

Domestic bonds
Domestic stocks and other securities
Foreign securities

Millions of Yen
Year ended
March 31, 2024
¥
5,711
2,210
33,527

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Asahi Mutual Life Insurance Company

The major components of losses on valuation of securities were as follows:

Domestic stocks and other securities
Foreign securities

Millions of Yen
Year ended
March 31, 2024¥
104
1

Losses on trading securities were losses on sales of ¥226 million for the fiscal years ended March 31, 2024.
Losses on derivative financial instruments included net valuation losses of ¥1,824 million for the fiscal year
ended March 31, 2024.
2.

Reinsurance Revenue and Reinsurance Premiums

The increased amount of unamortized ceding commissions for reinsurance contracts stipulated in Article 1,
Paragraph 5 of the Japanese Ministry of Finance Public Notice No. 50, 1996 for the fiscal year ended March
31, 2024 was ¥32,351 million, which was included in reinsurance revenue among premium and other income.
The decreased amount of unamortized ceding commissions for reinsurance contracts stipulated in Article 1,
Paragraph 5 of the Japanese Ministry of Finance Public Notice No. 50, 1996 for the fiscal year ended March
31, 2024 was ¥16,635 million, which was included in reinsurance premiums among claims and other payments.
3.

Impairment Losses of Fixed Assets

For the fiscal year ended March 31, 2024, impairment losses of fixed assets by the Company were as follows:(1) Method of grouping
The method of grouping is described in “Note 1. (17) Impairment losses of tangible fixed assets” of theconsolidated balance sheet.
(2) Background information on recognizing the impairment losses
As the profitability of certain real estate for rent dropped down significantly due to a decrease in the levelof rental income and a declining trend in the market prices of land, the Company reduced the book valuesof such real estate for rent, real estate not in use and real estate scheduled to be sold to their recoverable
amounts. The write-downs were recognized as impairment losses and included in the extraordinary losses.

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Asahi Mutual Life Insurance Company

(3) Asset groups for which impairment losses were recognized and losses by classification of fixed assets
Millions of Yen
Year ended
March 31, 2024
Real estate for rent:
Land
Building
Total real estate for rent (i)Real estate not in use:Land
Building
Total real estate not in use (ii)Real estate scheduled to be sold:Land
Building
Total real estate scheduled to be sold (iii)
Total:Land
Building
Total (i) + (ii) + (iii)

¥

562
579
1,141
-

¥

562
579
1,141

(4) Calculation method of recoverable amounts
The recoverable amounts of real estate for rent are determined at net realizable value or value in use. The
recoverable amounts for real estate not in use and real estate scheduled to be sold are net realizable value.
Value in use is determined as the estimated net future cash flows, reflecting the volatility risk, discounted
at 3.2% for the fiscal year ended March 31, 2024. Net realizable value is calculated based on the appraisal
value in accordance with “Real Estate Appraisal Standards” or the publicly announced appraisal value
after deducting expected disposal costs.

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Asahi Mutual Life Insurance Company

IV. Note to Unaudited Consolidated Statement of Comprehensive Income
Other Comprehensive Income
The reclassification adjustments and tax effect amounts related to other comprehensive income were as
follows:
Millions of Yen
Year ended
March 31, 2024
Net unrealized gains (losses) on available-for-sale securities, net of tax
Amount incurred during the fiscal year
Reclassification adjustments
Before tax adjustment
Tax effects
Net unrealized gains (losses) on available-for-sale securities, net of tax
Accumulated remeasurements of defined benefit plans
Amount incurred during the fiscal year
Reclassification adjustments
Before tax adjustment
Tax effects
Accumulated remeasurements of defined benefit plans
Total other comprehensive income

V.

¥

¥

193,729(1,368)
192,361(52,431)
139,929
1,084
942
2,027
(569)
1,458
141,387

Note to Unaudited Consolidated Statement of Cash Flows

Scope of Cash and Cash Equivalents
For the purpose of presenting the consolidated statements of cash flows, cash and cash equivalents arecomprised of cash on hand, demand deposits and all highly liquid short-term investments with a maturity of
three months or less when purchased, which are readily convertible into cash and present an insignificant riskof changes in value.

70
Asahi Mutual Life Insurance Company

（6）Disclosed Claims Based on Insurance Business Act(Millions of Yen, ％)As of March 31, 2023

As of March 31, 2024

Claims against bankrupt and quasi-bankrupt obligors

386

401

Claims with collection risk

30-

Delinquent loans three or more months past due

8580

Restructured loans

20

20

Subtotal

521

501（Percentage of total）(0.10)(0.08)

Claims against normal obligors

505,064

640,854

Total

505,586

641,356

Notes:
1. Claims against bankrupt and quasi-bankrupt obligors are claims to obligors who are subject to bankruptcy,
corporate reorganization or rehabilitation or other similar proceedings and other obligors in serious financial
difficulties.
2. Claims with collection risk are claims to obligors with deteriorated financial condition and results ofoperations from which it is unlikely that the principal and interest on the claims will be recovered, otherthan the claims described in note 1. above.
3. Delinquent loans three or more months past due are loans for which interest payments or repayments ofprincipal are delinquent for three months or more from the due dates under the terms of the related loan
agreements, other than the claims described in note 1. or 2. above.
4. Restructured loans are loans for which certain concessions favorable to borrowers, such as interest
reduction or exemptions, rescheduling of due dates of principal or interest payments, waivers of claim orother terms, have been negotiated for the purpose of assisting and supporting the borrowers in the
restructuring of their businesses, other than the claims described in note 1., 2. or 3. above.
5. Claims against normal obligors are all other claims.

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Asahi Mutual Life Insurance Company

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

As of March 31, 2023 As of March 31, 2024
Total solvency margin（Ａ）

979,054

1,170,919

Foundation funds and surplus

326,009328,628

Reserve for price fluctuation

38,21040,370Contingency reserve

64,26345,519--Catastrophe loss reserve
General allowance for possible loan losses

347

508

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

149,491

322,616

Net unrealized gains on land × 85%

35,03735,824(2,924)(896)

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

148,282

195,874

Qualifying subordinated debt

199,555

180,609

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

Deduction-(50)

20,78021,912

199,938

226,000(in case of losses： × 100%)

Sum of unrealized actuarial differences and unrealized past service cost

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

11,558

11,230Ordinary insurance risk

R5

-

-

Disaster insurance risk

R6

-

-

Third sector insurance risk

R812,002

13,003

Small amount short-term insurance provider insurance risk

R9

-

-

Risk of assumed yield

R2

64,04952,370

Minimum guarantee risk

R7

1,004

977

Investment risk

R3

129,105

166,439

Operational risk

R4

4,354

4,880

979.3%

1,036.2%

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

Notes:
1. The figures above are calculated based on Articles 86-2 and 88 of the Enforcement Regulation 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
amount of policy reserves based on full-time Zillmer method and qualifying subordinated debt excluded from thecalculation of solvency 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.

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Asahi Mutual Life Insurance Company

(8)Status of Insurance Claims Paying Ability of Insurance Subsidiaries(Solvency Margin Ratio)(Millions of Yen)

As of March 31, 2023 As of March 31, 2024
Total solvency margin（Ａ）

40,471

36,94539,301

34,606

0

0

1,153

2,338

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

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

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

15

332

Qualifying subordinated debt--

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

-

(332)

Deduction--

Others

-

-

1,256

2,345

Capital and others
Reserve for price fluctuation
Contingency reserve

Total amount of risk（Ｂ）

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

Insurance risk

R1

-

3

Third sector insurance risk

R8

1,153

2,181

Risk of assumed yield

R2

0

0

Minimum guarantee risk

R7

-

-

Investment risk

R3

365

586

Operational risk

R4

45

83

6,444.0%

3,150.3%

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

Note:
The figures above are calculated based on Articles 86 and 87 of the Enforcement Regulation of the Insurance BusinessAct and Japanese Ministry of Finance Public Notice No. 50, 1996.

(9) 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 and related information are omitted
because they represent such a minor proportion of total segments.

73

Asahi Mutual Life Insurance Company