May 25, 2022

Financial Results for the Fiscal Year Ended March 31, 2022
Asahi Mutual Life Insurance Company (the “Company”; President: Hiroki Kimura) announces financial
results for the fiscal year ended March 31, 2022

［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, 2021
Number of policies

As of March 31, 2022
Number of policies

Amount (100 millions of Yen)

(Thousands)

Changes(%, Pre-FYE)

Individual insurance

7,349

101.1

Individual annuities

506

Group insuranceGroup annuities

Amount (100 millions of Yen)

Changes(%, Pre-FYE)(Thousands)

Changes(%, Pre-FYE)

Changes(%, Pre-FYE)

132,551

93.2

7,372

100.3

123,289

93.0

95.3

20,603

93.9

479

94.6

19,38894.1--

14,475

99.6--

14,034

97.0

-

-

154

95.4

-

-

131

85.0

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, 2021
Number of policies(Thousands)

Amount (100 millions of Yen)

Changes(%, YoY)

Changes(%, YoY)

New
policies

Net increase by
conversion

Individual insurance

752

101.5

1,669

104.0

3,008

(1,338)

Individual annuities

-

-

(103)

-

-

(103)

Group insurance

-

-

322

258.8

322

-

Group annuities

-

-

-

-

-

-

Year ended March 31, 2022
Number of policies(Thousands)

Amount (100 millions of Yen)

Changes(%, YoY)

Changes(%, YoY)

New
policies

Net increase by
conversion

Individual insurance

724

96.3

1,692

101.4

3,033

(1,340)Individual annuities

-

-

(51)

-

-

(51)

Group insurance

-

-

212

65.9

212

-

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, 2021

As of March 31, 2022

Changes(%, Pre-FYE)

Changes(%, Pre-FYE)

Individual insurance

3,889

99.3

3,830

98.5

Individual annuities

1,322

95.1

1,242

93.9

Total

5,212

98.2

5,072

97.3

2,214

102.6

2,240

101.2

Third-sector products(ii) New Policies(100 millions of Yen）
Year ended March 31, 2021

Year ended March 31, 2022

Changes(%, YoY)

Changes(%, YoY)

Individual insurance

253

100.3

233

91.8

Individual annuities

(1)

-

(0)

-

251

100.7

232

92.1

209

101.3

193

92.2

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, 2021

Year ended March 31, 2022

Changes(%, YoY)

Changes(%, YoY)

Premium and other income

3,914

99.4

3,871

98.9

Investment income

1,465

104.8

1,449

98.9

Claims and other payments

3,853

94.8

3,814

99.0

Investment expenses

345

80.9

366

106.1

Ordinary profit

366

117.9

323

88.2

（4）Proposed Appropriation of Surplus(100 millions of Yen）
Year ended March 31, 2021

Year ended March 31, 2022

Changes(%, YoY)

Unappropriated surplus

Changes(%, YoY)

475

122.3

566

119.0

Reversal of voluntary surplus reserves

1

47.6

-

-

Reserve for dividends to policyholders

21

120.0

21

98.5

Net surplus

132

100.1

132

100.5

Surplus carried forward

323

133.9

412

127.6

（5）Total Assets(100 millions of Yen）
As of March 31, 2021

As of March 31, 2022

Changes(%, Pre-FYE)

Total assets

55,394102.8

3Changes(%, Pre-FYE)

55,041

99.4

Asahi Mutual Life Insurance Company

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

Cash, deposits, call loans
Monetary claims bought

As of March 31, 2021

As of March 31, 2022

AmountAmountPercentage

146,692

2.7

Percentage

145,376

2.7

25,0940.5

22,5340.4

4,586,013

83.2

4,539,235

82.9

Domestic bonds

2,708,646

49.1

2,621,140

47.9

Domestic stocks

438,359

8.0

464,670

8.5

Foreign securities

1,357,677

24.6

1,383,693

25.3

Foreign bonds

1,040,834

18.9

1,027,053

18.8

316,8425.7

356,640

6.5

81,3301.5

69,731

1.3

Securities

Foreign stocks and other foreign securities
Other securities
Loans

303,4515.5

311,416

5.7

Policy loans

35,182

0.6

32,1990.6

Industrial and consumer loans

268,268

4.9

279,2175.1

373,204

6.8

363,513

6.6

Real estate
Deferred tax assets
Others----77,225

1.4

94,397

1.7

(406)

(0.0)

(550)

(0.0)

5,511,274

100.0

5,475,924

100.0

1,452,046

26.3

1,489,515

27.2

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

Year ended March 31, 2021

Year ended March 31, 2022

AmountAmountCash, deposits, call loans

36,758(1,315)

Monetary claims bought(1,821)(2,559)232,608(46,777)

Domestic bonds(13,557)(87,505)

Domestic stocks

155,886

26,311

Foreign securities

72,61526,016

Foreign bonds(23,058)(13,781)

Foreign stocks and other foreign securities

95,67339,797

Securities

Other securities

17,664(11,599)(74,461)

7,965

Policy loans(5,371)(2,983)

Industrial and consumer loans(69,090)

10,948

Real estate(4,666)(9,690)

Deferred tax assets(8,044)-

Others(33,351)

17,172

(15)

(143)

147,005(35,349)

57,872

37,469Loans

Allowance for possible loan losses
Total
Foreign currency-denominated assets

4

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, 2021

Year ended March 31, 2022

118,111

120,5310095,84999,054

Interest on loans

4,639

4,241

Rent revenue from real estate

16,543

16,339Other interest and dividends

1,078

895

15,24911,949Gains on sales of domestic bonds

9,357

4,943

Gains on sales of domestic stocks and other securities

3,331

6,238

Gains on sales of foreign securities

2,559

767

-

-

Gains on redemption of securities

77

317

Gains on derivative financial instruments, net

-

-

387

3,065

-

-

Gains on sales of securities

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

6,968

6,919

140,794

142,783（4）Investment Expenses(Millions of Yen)

Year ended March 31, 2021

Year ended March 31, 2022

4,470

4,876

Losses on trading securities

485

1,133

Losses on sales of securities

5,520

11,177892

1,073

Losses on sales of domestic stocks and other securities

1,893

1,448

Losses on sales of foreign securities

2,733

8,655

-

-

19

273

Losses on valuation of domestic bonds--

Losses on valuation of domestic stocks and other securities

17

272

Losses on valuation of foreign securities

1

1

Others

-

-

65

48

Interest expenses

Losses on sales of domestic bonds

Others
Losses on valuation of securities

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

8,898

2,510

Foreign exchange losses, net--

Provision for allowance for possible loan losses

10

141

Write-offs of loans

00Depreciation of rental real estate and other assets

5,503

5,511

Other investment expenses

9,584

10,981

34,55936,655Total

5Asahi Mutual Life Insurance Company

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

Year ended March 31, 2021

Year ended March 31, 2022

Cash, deposits, call loans

0.00

0.00

Monetary claims bought

2.32

2.34

Securities

2.27

2.28

Domestic bonds

1.74

1.68

Domestic stocks

5.12

6.34

Foreign securities

2.86

2.45

1.30

1.40

0.96

1.06

Real estate

2.56

2.46

Total

2.04

2.04

2.85

2.43

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, 2021

Year ended March 31, 2022

Cash, deposits, call loans

105,234

106,446

Monetary claims bought

26,061

23,837

4,258,555

4,286,937

2,723,696

2,654,208

Securities
Domestic bonds
Domestic stocks

198,007

217,716

Foreign securities

1,259,277

1,343,961

339,249

303,923

300,816

270,218

Loans
Industrial and consumer loans
Real estate
Total
Foreign Investments

381,121375,154

5,212,798

5,201,254

1,261,305

1,354,372

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, 2021
AmountTrading securities

As of March 31, 2022

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, 2021
Book value Fair value

As of March 31, 2022

Gains/losses
Gains

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

Book value Fair value

Gains/losses

Losses321,005

360,399

39,39439,4002,039,060

2,254,994

215,933

226,245

-

-

-

-

Available-for-sale securities 1,896,266

2,176,827

280,561

316,801

(6)

Gains

Losses301,647

333,640

31,99232,001(8)(10,311) 2,028,714

2,159,139

130,424

169,489(39,065)

-

-

-

-

-

(36,239) 1,912,317-

2,135,750

223,432

300,935(77,503)

Domestic bonds

513,117

527,705

14,587

17,240(2,653)

468,248467,355

(893)

6,409

(7,302)

Domestic stocks

175,768

403,715

227,947

240,553(12,605)

166,694

413,036

246,341

259,795(13,453)

Foreign securities

1,130,861

1,163,145

32,28352,419(20,135) 1,208,339

1,184,814(23,525)

31,335(54,860)

Foreign bonds
Foreign stocks andother foreign securities
Other securities

853,897885,834

31,93646,194(14,257)

904,300

872,053(32,247)

11,095(43,342)276,964

277,311

347

6,225

(5,877)304,039

312,761

8,721

20,239(11,518)

75,636

81,291

5,655

6,500

(845)

68,202

69,587

1,384

3,271

(1,886)

Monetary claims bought
Negotiable certificates ofdeposit
Others

882

969

86

86

-

833

957

123

123

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

4,256,332

4,792,221

535,889

582,446(46,557) 4,242,680

4,628,529

385,849

502,426(116,576)

2,694,058

2,931,420

237,362

250,333(12,971) 2,622,033

2,756,333

134,299

180,668(46,368)

Total
Domestic bonds
Domestic stocks

175,768

403,715

227,947

240,553(12,605)

166,694

413,036

246,341

259,795(13,453)

Foreign securities

1,285,861

1,348,378

62,51682,651(20,135) 1,363,339

1,365,318

1,978

56,839(54,860)

Foreign bonds
Foreign stocks andother foreign securities
Other securities

1,008,897

1,071,066

62,16876,426(14,257) 1,059,300

1,052,556(6,743)36,599(43,342)276,964

277,311

347

6,225

(5,877)304,039

312,761

8,721

20,239(11,518)

75,636

81,291

5,655

6,500

(845)

68,202

69,587

1,384

3,271

(1,886)

Monetary claims bought
Negotiable certificates ofdeposit
Others

25,007

27,415

2,408

2,408

-

22,41024,255

1,844

1,852

(8)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Notes:
1. The table above includes assets which are considered appropriate to deem as securities under the Financial Instruments and Exchange Act.
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, 2021 As of March 31, 2022

Stocks of subsidiaries

21,36737,377Available-for-sale securities

52,58454,874

Domestic stocks

13,275

14,257

Foreign stocks

11

11

Others39,29740,605

Total

73,952

92,251

7

Asahi Mutual Life Insurance Company

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

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

As of March 31, 2021

As of March 31, 2022

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

225,244 288,073
62,828 220,186 285,692
Land
Notes:
1. Fair Value is calculated based on appraisal value for property tax and others.
2. The amount above includes leasehold.

65,505(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, 2021

As of March 31, 2022

Gains/losses

Book value Fair value

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

321,005

360,399

39,39439,4002,039,060

2,254,994

215,933

226,245

21,367

21,367--Available-for-sale securities 1,948,851

2,229,674

280,822527,705

14,587

Domestic bonds

513,117

Gains/losses

Book value Fair value

Losses(6)

Gains

Losses301,647

333,640

31,99232,001(8)(10,311) 2,028,714

2,159,139

130,424

169,489(39,065)

37,37737,377---317,280(36,457) 1,967,191

2,194,030

226,838

304,350(77,512)

17,240(2,653)

468,248467,355

(893)

6,409

(7,302)-

Domestic stocks

189,044416,991

227,947

240,553(12,605)

180,951427,293

246,341

259,795(13,453)

Foreign securities

1,170,164

1,202,677

32,512

52,865(20,352) 1,248,812

1,228,693(20,118)

34,750(54,869)

853,897885,834

31,93646,194(14,257)

904,300

872,053(32,247)

11,095(43,342)

316,266

316,842

576

6,671

(6,095)344,512356,640

12,12823,655(11,527)

75,642

81,330

5,687

6,533

(845)

68,34669,731

1,384

3,271

(1,886)

882

969

86

86

-

833

957

123

123

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

4,330,284

4,866,435

536,150

582,926(46,775) 4,334,931

4,724,187

389,255

505,841(116,585)

2,694,058

2,931,420

237,362

250,333(12,971) 2,622,033

2,756,333

134,299

180,668(46,368)

Foreign bonds
Foreign stocks andother foreign securities
Other securities
Monetary claims bought
Negotiable certificates ofdeposit
Others
Total
Domestic bonds
Domestic stocks

210,411438,359

227,947

240,553(12,605)

218,328

464,670

246,341

259,795(13,453)

Foreign securities

1,325,164

1,387,909

62,74583,098(20,352) 1,403,812

1,409,197

5,384

60,254(54,869)

Foreign bonds
Foreign stocks andother foreign securities
Other securities

1,008,897

1,071,066

62,16876,426(14,257) 1,059,300

1,052,556(6,743)36,599(43,342)

316,266

316,842

576

6,671

(6,095)344,512356,640

12,12823,655(11,527)

75,642

81,330

5,687

6,533

(845)

68,34669,731

1,384

3,271

(1,886)

Monetary claims bought
Negotiable certificates ofdeposit
Others

25,007

27,415

2,408

2,408

-

22,41024,255

1,844

1,852

(8)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

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

8

Asahi 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
Customers’ liabilities under acceptances and guarantees
Allowance for possible loan losses
Total assets

9

As of March 31, 2021

As of March 31, 2022

35,36815
35,352
113,000
25,0944,612,320
1,692,106
49,130973,538
447,371
1,368,844
81,330303,451
35,182
268,268
377,849
221,081
150,533
1,459
1,589
3,186
26,797
17,7229,075
14987
44,692
7,278
4,027
20,230
2,898
1,949
6,202
677
1,427
233
1
(406)
5,539,404

35,852
20
35,832
111,000
22,5344,565,837
1,669,691
50,540907,641
472,584
1,395,647
69,731
311,416
32,199279,217368,550
216,027
146,310
2,194
1,175
2,841
28,74318,9289,815
11393
60,054
22,7783,517
20,077
3,044
960
7,513
861
1,300
318
(550)
5,504,161

Asahi Mutual Life Insurance Company

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

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-salesecurities, net of tax
Land revaluation differences
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

10

As of March 31, 2021

As of March 31, 2022

4,477,995
28,572
4,419,372
30,050680
127,773
292,817
178,81041,000
5,042
4,422
8,424
186
631
17,53333,471
896
1,459
851
87
30,85645,68022,826
16,2681
5,014,899

4,425,731
32,0184,365,068
28,644752
102,424
375,938
179,548
41,0004,474
27,340
7,639
202
415
17,83190,445
3,791
2,194
914
140
29,847
48,2103,622
15,711
5,002,238

91,000166,000
281
99,378328
99,05044,4007,091
47,558356,660

91,000166,000
281
117,444347
117,097
53,5006,983
56,614
374,726

213,200

173,936(45,354)
167,845524,505
5,539,404(46,739)
127,197
501,923
5,504,161

Asahi Mutual Life Insurance Company

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

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 reserve for outstanding claims
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
Other extraordinary gains
Extraordinary losses:
Losses on disposal of fixed assets
Impairment losses
Provision for reserve for price fluctuation
Losses on reduction entry of real estate
Other extraordinary losses
Surplus before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net surplus

11

Year ended March 31, 2021

Year ended March 31, 2022

600,713
391,410
388,896
2,514
146,534
118,111
95,8494,639
16,543
1,078
15,249
77
387
6,968
5,740
62,767
8,927
1,677
806
48,6242,732
564,083
385,384
112,015
122,158
68,241
77,538
3,158
2,272
3
3
34,559
4,470
485
5,520
19
65
8,898
10
5,503
9,584
110,323
33,812
10,491
9,126
12,181
2,013
36,629
275
146
129
8,602
1,481
2,971
2,450
5
1,694
28,302
10,122(5,084)
5,038
23,263597,910387,134
385,691
1,443
144,983
120,531
99,054
4,241
16,339895
11,949
317
3,065
6,919
2,199
65,7928,135
1,008
54,304
2,343
565,605
381,466
107,517
116,767
72,93879,236
2,403
2,602
3,449
3,446
3
36,655
4,876
1,133
11,177
273
48
2,510
141
5,511
10,981
110,388
33,646
9,859
9,345
12,354
2,086
32,305
2,928
2,925
3
6,561
2,751
1,149
2,530
130
28,671
10,788(5,041)
5,747
22,924

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
maintained by Asahi Mutual Life Insurance Company (the “Company”) in accordance with theprovisions 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 in certain 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 the disclosure 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 topresent them in a format which is more familiar to readers outside Japan.

II. Notes to Unaudited Non-consolidated Balance Sheet
1.

Significant Accounting Policies(1) Valuation methods of securities
The valuation of securities, including deposits and monetary claims bought which areequivalent to securities 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 Treatmentof Accounting and Auditing Concerning Policy-reserve-matching Bonds in Insurance
Industry” (Industry Audit Committee Report No. 21 issued by the Japanese Instituteof Certified Public Accountants (“JICPA”)), are stated at amortized cost (straight-line
method) determined by the moving average method.
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 the market 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

12Asahi Mutual Life Insurance Company

acquisition cost and face value considered as an adjustment of interest, are stated atamortized cost (straight-line method) determined by the moving average method.
Stocks and others without a market price are stated at cost determined by the moving
average method. Net unrealized gains or losses on these available-for-sale securities,
net of tax, 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) of individual life insurance and individual annuities as policyreserve-matching bonds 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 JICPA).
Since the fiscal year ended March 31, 2022, the Company changed its liability cash flow,which is the premise of assessing the duration to outstanding insurance liabilities, from a“Term of future 30 years” to a “Whole period” for the sub-group including Individual life
Insurance and Individual Annuities (excluding Whole Life Insurance with variable interest
rate accumulation, Accumulation Insurance with variable interest rates and New Single
Premium Individual Annuity effective on and after April 2, 2012). This change did not haveany effects on the non-consolidated balance sheet and non-consolidated statement ofincome as of and for the fiscal year ended March 31, 2022.
(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 ofLand (Act No. 34 promulgated on March 31, 1998). The difference between fair value andbook value resulting from the revaluation, net of related taxes, is recorded as land
revaluation differences as a separate component of net assets and the related tax isrecorded 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 with certain 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.

13

Asahi Mutual Life Insurance Company

■

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 are translated into Japanese yen at
the effective exchange rate prevailing at the balance sheet date.
(7) Allowance for possible loan losses
Allowance for possible loan losses is provided in accordance with the Company’s standardsof self-assessment 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 whoare substantially bankrupt (hereinafter “substantially bankrupt borrowers”), theCompany provides the remaining amount of credits after the direct write-off described
below and the deductions of the amount expected to be collected through the disposalof collateral or the execution of guarantees.

ii)

For credit to borrowers who are not currently bankrupt but have a high risk ofbankruptcy (hereinafter “not currently bankrupt borrowers”), the Company provides
the amounts deemed as necessary considering the borrowers’ ability to pay, within theamounts after deductions of the amount expected to be collected through the disposalof collateral or the execution of guarantees.

iii) For credit to borrowers other than the above, the Company provides the amounts
calculated by multiplying 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 self-assessment on credit quality. The results of the assessment are reviewed
by the audit department, which is 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, theamounts remaining after deductions of collateral value or the amounts collectible throughthe execution of guarantees are written-off directly from the book value as the estimateduncollectible amounts. The amount written-off as of March 31, 2022 was ¥24 million.
(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 theemployees’ 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 ofseven years starting the following year.

14

Asahi Mutual Life Insurance Company

■

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).
The Company mainly applies the following hedging activities:
The Company applies deferred hedge accounting and the exceptional accounting treatment(“Tokurei-shori”) 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 toforeign 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 to hedge foreign exchange rate fluctuation exposures on the foreign currencydenominated bonds issued by the Company.
The Company also applies designated hedge accounting (“Furiate-shori”) for the foreign
currency-denominated transactions other than the above.
The effectiveness of a hedge is mostly assessed by a ratio analysis, comparing thefluctuations in the fair value 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 fromconsumption 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) is 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 therelevant amounts received.
Of insurance premiums, the portion corresponding to the period that has yet to pass as ofthe 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.

15

Asahi Mutual Life Insurance Company

(13) Claims and other payments (excluding reinsurance premiums)
Claims and other payments (excluding reinsurance premiums) are recorded for insurance
policies for which amounts calculated under policy conditions have been paid in theoccurrence of insured events under the policy conditions by the relevant amounts paid.
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 theCompany has payment obligation or the occurrence of insured events has not been reported
but the Company finds that insured events have already occurred, as of the end of the fiscal
year.
(14) Policy reserves
Policy reserves are calculated as stated in accordance with the methods stated in thestatement of calculation procedures for insurance premiums and policy reserves (Article 4,
Paragraph 2, Item 4 of the Insurance Business Act) pursuant to Article 116, Paragraph 1of 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 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 thefollowing method:
In regard to the policies subject to the standard policy reserves, the method as prescribedby the Commissioner 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 is applied.
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 inorder 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
methods.
i)

Calculation method
Real estate and other assets used for insurance business operations are classified as
one asset group as 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 forreal estate used for multiple purposes, the asset group to which the real estate belongs
is decided depending on usage rate and others.

16

Asahi Mutual Life Insurance Company

The Company identifies signs of impairment losses in asset groups when earnings
from business operations using the asset groups continuously become negative.
As for asset groups for which signs of impairment losses are identified, when total
amounts of undiscounted net future cash flows from the asset groups are less thantheir book values, the Company recognizes impairment losses and reduce the bookvalues to their recoverable amounts.
The recoverable amounts of real estate and other assets for insurance business
operation and real estate for rent are determined at value in use or net realizablevalue. The recoverable amounts of real estate not in use and real estate scheduled tobe sold are net realizable value. Value in use is determined as the discounted present
value of estimated net future cash flows and discount rate used in the calculation isbased on the cost of capital.
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.
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. Theseassumptions may be affected by economic condition and 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 are used 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 be affected by future real estate market trends. In case that net
realizable value decreases as a result of this, impairment losses may occur in thefollowing fiscal year.
(16) Software
Capitalized software for internal use owned by the Company is amortized using thestraight-line method over the estimated useful lives.

17

Asahi Mutual Life Insurance Company

2.

Accounting Changes

The Company has applied “Accounting Standard for Fair Value Measurement” (ASBJ
Statement No. 30, issued on July 4, 2019) and others from the fiscal year ended March 31, 2022.
In accordance with the transitional treatment set forth in Paragraph 19 of "AccountingStandard for Fair Value Measurement" and Paragraph 44-2 of "Accounting Standard for
Financial Instruments" (ASBJ Statement No.10, July 4, 2019), the Company has applied new
accounting policies prospectively. As a result, available-for-sale securities, of which domestic
listed stocks, domestic stock exchange-traded funds, domestic listed real estate investment
trusts, foreign stock exchange-traded funds for which hedge accounting is not applied, foreign
bond exchange-traded funds for which hedge accounting is not applied and foreign currencydenominated bonds for which hedge accounting is not applied, are changed to be stated at fairvalue based on the market prices at the balance sheet date from fair value based on the averageof the market prices during the final month of the fiscal year.
In determining to recognize impairment losses on available-for-sale securities, the Company
has used fair value based on the average of market prices during the final month of fiscal year
as before.
3.

Accounting Standards Issued but Not Yet Effective

The Company and part of its subsidiaries made a request for approval for the application of thegroup tax sharing system in December 2021 and it is decided to be applied from the fiscal year
ending March 31, 2023.
The accounting standard and relevant implementation guidance issued by the fiscal year-end
but not yet effective is the “Practical Solution on the Accounting and Disclosure Under theGroup Tax Sharing System” (ASBJ PITF No.42) and its contents are as follows:i)

Overview
The practical solution was issued to stipulate the accounting and disclosure treatmentof corporate tax, local corporate tax and tax effect accounting when applying the grouptax sharing system, following the “Act for Partial Amendment of the Income Tax Act,etc.” (Act No.8, 2020) enacted on March 27, 2020 which requires revision of theconsolidated taxation system and transition to the group tax sharing system.

ii)

Schedule date of application
The practical solution is scheduled to be applied from the beginning of the fiscal year
ending March 31, 2023.

iii) Effects of application of the practical solution
The effects of the application are under assessment at the time of preparing these nonconsolidated financial statements.
4.

Changes in Reporting Method

Following the revision of the Enforcement Regulation of the Insurance Business Act, claims to
be disclosed are classified in the revised categories in the following “Note 9. Claims”.

18

Asahi Mutual Life Insurance Company

5.

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 withvariable interest rates and new single premium individual annuities which have aneffective date on or after April 2, 2012, the Company mainly invests in domestic bonds,
engaging in matching asset liability management, or Matching ALM, which aims atmatching 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 yen-denominated fixed income investments, including bonds and loans, as the coreof its asset portfolio. The Company also holds domestic stocks, foreign securities and realestate 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 the Company. As the major financial instruments,
securities are exposed to market risk and credit risk, loans are exposed to credit risk andexchange rate fluctuation risk, and derivatives are exposed to market risk and credit risk.
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 and sensitivity analysis which analyze the effect on the Company’s
whole portfolio, simulating scenarios of deteriorating 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 throughVaR method and controls the amount of risks within an acceptable range. Furthermore, theCompany assigns in-house credit ratings to our borrowers in accordance with thecreditworthiness of each borrower. Strict credit research of each 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 inaccordance with its credit risks to avoid the concentration of credit risks on specific corporations
and specific corporation groups. Through all these measures, the Company endeavors to develop
high quality portfolio.

19

Asahi Mutual Life Insurance Company

The balance sheet amounts, fair values and the differences between those of major financial
assets and liabilities as of March 31, 2022 were as follows. The following table does not include
cash and deposits, call loans and payables under securities borrowing transactions which aremostly settled in a short term and their fair values approximate their book values.
Millions of Yen
As of March 31, 2022
Balance Sheet
Amount¥22,534
21,577957
4,470,179
26,601
280,0702,028,714
2,134,792
311,416
32,199279,217
4,804,130
102,424
41,000143,424(89,485)(2,555)(86,930)

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

Fair Value¥

24,25523,297957
4,630,876
26,601
310,342
2,159,139
2,134,792
317,500
32,199285,301
4,972,631
103,200
42,260145,460(89,485)(2,555)(86,930)

Difference
¥

1,720
1,720
160,696
30,272
130,424
6,083
6,083
168,501
776
1,260
2,036
-

*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 not included 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 ¥51,645 million as of March 31, 2022.
Investments in partnerships and others for which transitional measures are applied inaccordance with Paragraph 27 of “Implementation Guidance on Accounting Standard for Fair
Value Measurement” (ASBJ Guidance No. 31, issued on July 4, 2019) are not included in thetable above. The amount of the investments in partnerships and others, reported in the nonconsolidated balance sheet was ¥44,012 million as of March 31, 2022.
6.

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 accordancewith the observability 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 thanLevel 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 those20

Asahi Mutual Life Insurance Company

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 non-consolidated balance
sheet

Level 1
Monetary claims bought
Available-for-sale securities
Securities *1
Trading securities
National government bonds andlocal government bonds
Corporate bonds
Domestic stocks
Foreign stocks
Foreign bonds
Available-for-sale securities
National government bonds andlocal government bonds
Corporate bonds
Domestic stocks
Foreign bonds
Total assets
Derivative financial instruments *2
Currency-relatedInterest-related
*1

*2

¥

Millions of Yen
As of March 31, 2022
Fair Value
Level 2
Level 3

Total

- ¥
- ¥
580,435 1,169,127
24,719
1,882

957 ¥
957
957
957
29,482 1,779,045
26,601

5,830
7,914
8,269
2,705
555,716902
979
1,167,245

29,482

5,830
902
7,914
8,269
3,684
1,752,444

39,829413,036
102,850
580,435-

685
426,840
739,719
1,169,127(89,755)(89,755)-

29,48230,440270
270

40,514
426,840
413,036
872,053
1,780,003(89,485)(89,755)
270

Investment trusts for which transitional measures are applied in accordance with Paragraph 26 of“Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance
No. 31, issued on July 4, 2019) are not included in the table above.
The balance sheet amount of the investment trusts was \382,348 million as of March 31, 2022.
Assets and liabilities generated by derivative financial instruments are offset and presented net.
Net liabilities in total are presented in parentheses.

21

Asahi Mutual Life Insurance Company

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

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¥

Level 1Millions of Yen
As of March 31, 2022
Fair Value
Level 2
Level 3

- ¥1,752,190
36,939- ¥592,381
148,494

23,297 ¥23,29723,29723,297
124,909 2,469,481
124,909
310,342

36,9391,715,251

92,90055,594
443,887

124,909-36,93992,900180,503
2,159,139

1,715,251
1,752,190-

51,082392,804
592,381
103,200
103,200

317,500
32,199285,301
465,70742,26042,2601,766,334
392,804
317,500
32,199285,3012,810,279
103,200
42,260145,460

Total(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“Accounting Standard 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 andgovernment bonds. In the case the market is inactive even if the quoted market priceis 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.
Fair values of investment trusts are measured at the disclosed net asset value andothers. Investment trusts for which transitional measures are applied in accordancewith Paragraph 26 of “Implementation Guidance on Accounting Standard for Fair
Value Measurement” (ASBJ Guidance No. 31, issued on July 4, 2019) are notcategorized into any level.

ii)

Loans
As credit exposure for policy loans without specific repayment periods is limited to theamount of the cash surrender value, the Company considers book value as fair value

22

Asahi Mutual Life Insurance Company

with assumption that fair value 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 theoreticalprices calculated by discounting the future cash flows to the present value by type ofloan, 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 not currently
bankrupt borrowers is stated at the amounts by deducting estimated losses from thebook value before direct write-offs. Loans to legally bankrupt borrowers, substantiallybankrupt borrowers and not currently bankrupt borrowers 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 payable issued by the Company are categorized as level 2. The fair value ofbonds 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 thefair value of currency swaps.
iv) Loans payableAs for loans payable, the fair value of loans is stated at theoretical prices calculatedby discounting the future cash flows to the present value, using market interest rates
with some adjustments based on the Company’s credit risk. Loans payable arecategorized as level 3.
v)

Derivative financial instruments
As for derivative financial instruments, the fair values of foreign currency forward
contracts are 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 andinterest rate swaptions are stated at the quoted prices offered by counterparty
financial institutions.
In evaluation of derivative financial instruments, the Company maximizes the use ofobservable inputs. In the case unobservable inputs are not used or impact ofunobservable inputs are not material, 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
non-consolidated 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.

23

Asahi Mutual Life Insurance Company

ii)

Reconciliation between the beginning and ending balance, and net unrealized gains(losses) recognized as gains (losses) for the fiscal year
Millions of Yen
Monetary claimsboughtSecurities

Available-forsale securities

Available-forsale securities

OthersForeign bonds

Year ended
March 31, 2022

¥

Total
(i) + (ii)
Stock-related

（ii）

(i)
Beginning balance
Gains (losses) and net unrealized
gains (losses) on available-for-salesecurities, net of tax recorded forthe fiscal year:
Gains (losses) recorded forthe fiscal year *1
Net unrealized gains (losses) on
available-for-sale securities, netof 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 *2
Ending balance
Net unrealized gains (losses) on
financial assets and liabilities heldat the balance sheet date among
the amount recorded to gains (losses)
for the fiscal year *1

Derivative
financial
instruments

969 ¥26,853 ¥27,822 ¥

-

16

75

91

(24)

(20)

2,406

2,385

(24)

36

(2,330)(2,293)

-

(28)
957

10,711(8,157)29,482

10,682(8,157)30,440

294
270

-

2,406

2,406

(24)

*1 Those amounts are included in investment income and investment expenses in the non-consolidated statementof income.
*2 Those amounts are transferred from level 3 to level 2 since it has become possible to obtain observable data.
Those transfers were made at the end of the fiscal year.

iii) Description of the fair value evaluation process
The Company establishes policies and procedures for measuring the fair value in theactuarial and accounting department and the risk management department. In
accordance with these policies and procedures, the risk management department
measures the fair value. The validity of the evaluation methods and inputs used tomeasure fair value and the appropriateness of categorization of fair value are verified
in the independent division in the risk management department.
In fair value measurement, valuation models in which the nature, characteristics andrisks of individual assets are most appropriately reflected are used. In addition, whenquoted prices obtained from third parties are used, the validity of the prices is verified
by appropriate methods such as confirmation of evaluation method and used inputs
and comparison with the fair values of similar financial instruments.

24

Asahi Mutual Life Insurance Company

7.

Investments and Rental Properties

The Company holds investment and rental properties such as office buildings in Tokyo and otherareas. The carrying amount and the fair value of investment and rental properties were¥242,418 million and ¥285,844 million as of March 31, 2022. 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 accordance with real estate appraisal
standards.
8.

Securities Lent under Lending Agreements

The amount of securities lent under lending agreements was ¥218,367 million as of March 31,
2022.
9.

Claims

The total amount of claims against bankrupt and quasi-bankrupt obligors, claims withcollection risk, delinquent loans three or more months past due and restructured loans, whichwere included in claims, was ¥609 million as of March 31, 2022.
i)

Claims against bankrupt and quasi-bankrupt obligors were ¥453 million as of March 31,
2022.

ii)

Claims with collection risk were ¥70 million as of March 31, 2022.

iii) Delinquent loans three or more months past due were ¥66 million as of March 31, 2022.
iv) Restructured loans were ¥20 million as of March 31, 2022.
Claims against bankrupt and quasi-bankrupt obligors are claims to obligors who are subject tobankruptcy, corporate reorganization or rehabilitation or other similar proceedings and otherobligors in serious financial difficulties.
Claims with collection risk are claims to obligors with deteriorated financial condition andresults 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 of principal are delinquent for three months or more from the due dates under theterms of the related loan agreements, excluding those claims classified as claims against
bankrupt and quasi-bankrupt obligors and claims 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 andsupporting the borrowers in the restructuring of their businesses. 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 amount of claims against bankrupt andquasi-bankrupt obligors described above by ¥24 million as of March 31, 2022.

25

Asahi Mutual Life Insurance Company

10. Accumulated Depreciation of Tangible Fixed Assets
Accumulated depreciation of tangible fixed assets totaled ¥286,537 million as of March 31, 2022.
11. Separate Accounts
Total assets in separate accounts provided for in Article 118 of the Insurance Business Act were¥28,175 million as of March 31, 2022. The amounts of separate account liabilities were the sameas separate account assets.
12. Receivables from/Payables to Subsidiaries
The total amounts of receivables from/payables to subsidiaries were ¥386 million and ¥2,158
million as of March 31, 2022.
13. 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)

Millions of Yen
As ofMarch 31, 2022¥
68,186
13,89754,28857,911¥(3,622)Major components of deferred tax assets/liabilities were as follows:

Millions of Yen
As ofMarch 31, 2022
Deferred tax assets
Contingency reserve
Reserve for price fluctuation
Reserve for employees’ retirement benefits
Impairment losses
Net unrealized losses on available-for-sale securities
Deferred tax liabilities
Net unrealized gains on available-for-sale securities¥

21,731
13,450
8,327
7,223
4,394

¥

56,416(2) The statutory tax rate was 27.9% for the fiscal year ended March 31, 2022. The main factors
causing the difference between the statutory tax rate and the actual effective tax rate after
considering deferred taxes were as follows:

Interest on foundation funds
Change of valuation allowance for deferred tax assets

26

Year ended
March 31, 2022
(4.0)%(3.2)%

Asahi Mutual Life Insurance Company

14. 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, 2022¥
30,050
2,153
3,562
3
¥
28,644

15. Stocks of Subsidiaries and Affiliates
The amount of stocks of subsidiaries and affiliates the Company held as of March 31, 2022 was
37,377 million.
The Company provided capital of ¥17,000 million to Nanairo Life Insurance Co., Ltd. on April
15, 2022.
16. Pledged Assets
Assets pledged as collateral as of March 31, 2022 were securities in the amount of ¥80,591
million.
17. 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 whichapplies 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¥9 million as of March 31, 2022.
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 forceded reinsurance”) were ¥373 million as of March 31, 2022.
18. 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 ¥174,218 million as of March 31, 2022.
19. 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,
2022 was ¥25,709 million. No assets were pledged as collateral as of March 31, 2022.

27

Asahi Mutual Life Insurance Company

20. Commitment LineAs of March 31, 2022, there were unused commitment line agreements under which theCompany is the lender of ¥13,947 million.
21. Subordinated Bonds Payable
As of March 31, 2022, bonds payable are subordinated bonds payable, for which the repayments
are subordinated to other obligations.
22. Subordinated Loans Payable
As of March 31, 2022, loans payable are subordinated loans payable, for which the repayments
are subordinated to other obligations.
23. Contributions to Policyholders Protection Corporation
The estimated future contributions to the Life Insurance Policyholders Protection Corporationof Japan under Article 259 of the Insurance Business Act as of March 31, 2022 were ¥8,260
million. These contributions are charged as operating expenses in the fiscal years in which they
are paid.
24. 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 funded-type, and lump-sum retirement allowance plans which are non-funded type 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

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

28

Millions of Yen
Year ended
March 31, 2022¥
40,365
1,808
403
514
(3,602)¥
39,489Asahi Mutual Life Insurance Company

ii)

Reconciliation of beginning and ending balance of pension plan assets

Millions of Yen
Year ended
March 31, 2022
¥
7,912
62
(809)
155
(197)
¥
7,123

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 reservefor employees’ retirement benefits and prepaid pension cost presented on the nonconsolidated balance sheet

Millions of Yen
As ofMarch 31, 2022¥
39,489(7,123)32,365(2,836)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 sheet

29,52929,847(318)¥

29,529iv) 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)

Millions of Yen
Year ended
March 31, 2022
¥
1,808
403
(62)
317
¥
2,466

Breakdown of main pension plan assets
The breakdown of main asset categories as a percentage of pension plan assets was asfollows:

As ofMarch 31, 2022
38%
10%
52%
100%

Stocks
Bonds
OthersTotal

29

Asahi Mutual Life Insurance Company

vi) Method for determining the expected long-term rate of return
To determine the expected long-term rate of return on pension plan assets, theCompany 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 ofassets 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, 2022
1.0%
0.8%
1.6%

The total amounts of revenues and expenditures in connection with subsidiaries and affiliates
were ¥623 million and ¥9,338 million for the fiscal year ended March 31, 2022.
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, 2022
¥
4,943
6,238
767

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, 2022
¥
1,073
1,448
8,655

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

Domestic stocks and other securities
Foreign securities

30

Millions of Yen
Year ended
March 31, 2022¥
272
1

Asahi Mutual Life Insurance Company

Losses on trading securities were losses on sales of ¥1,133 million for the fiscal year ended
March 31, 2022.
Losses on derivative financial instruments included net valuation gains of ¥641 million for the
fiscal year ended March 31, 2022.
3.

Policy Reserves for the Reinsurance Contracts

Provision for 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, 2022
was ¥2 million.
Provision for policy reserves for ceded reinsurance, which was added in calculating reversal ofpolicy reserves for the fiscal year ended March 31, 2022 was ¥13 million.
4.

Impairment Losses of Fixed Assets

For the fiscal year ended March 31, 2022, 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 adecrease in the level of rental income and a declining trend in the market prices of land,
the Company reduced the book values of such real estate for rent, real estate not in use
and real estate scheduled to be sold to their recoverable amounts. The write-downs wererecognized as impairment losses and included in the extraordinary losses.
(3) Asset groups for which impairment losses were recognized and losses by classification of
fixed assets

Millions of Yen
Year ended
March 31, 2022
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)
31

¥

622
526
1,149
-

¥

622
526
1,149
Asahi Mutual Life Insurance Company

(4) Calculation method of recoverable amounts
The recoverable amounts of real estate for rent are determined at net realizable value orvalue 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 3.3% for the fiscal year ended March
31, 2022. 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)(Millions of Yen)

Fundamental profit

Ａ

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)
Ｂ
Fundamental profit plus net capital gains
Ａ＋Ｂ(losses)
Other one-time gains
Reinsurance revenue
Reversal of contingency reserve
Reversal of specific allowance for possible loan
lossesOthersOther one-time losses
Reinsurance premiums
Provision for contingency reserve
Provision for specific allowance for possible loan
lossesProvision for allowance for specified overseas loans
Write-offs of loans
OthersNet other one-time gains (losses)
Ｃ
Ordinary profit
Ａ＋Ｂ＋Ｃ

33

Year ended
March 31, 2021

Year ended
March 31, 2022

46,53947,782

15,637
15,249387
14,924
485
5,520
19
8,898
712

15,015
11,9493,065
15,095
1,133
11,177
273
2,510
(79)

47,25247,702

43
-

44
-

43

44

10,666
10,666

15,441
15,441--

0(10,622)
36,6290(15,397)
32,305

Asahi Mutual Life Insurance Company

6．Unaudited Non-consolidated Statements of Changes in Net Assets
Year ended March 31, 2021

(Millions of Yen)
Foundation funds and others
Surplus

Beginning balance

Foundation
funds

Reserve forredemption offoundation
funds

Reserve forrevaluation

91,000166,000

281

Other surplus
Reserve for
future losses

Reserve forfund
redemption

Equalized
reserve fordividends topolicyholders

310

35,300

7,318

Total
surplusTotal
foundation
funds andothersUnappropriatedsurplus(loss)

38,89081,819339,100(1,794)(1,794)(1,794)

Changes in the fiscal year:
Additions to reserve for dividends topolicyholders
Additions to reserve for future
losses18(18)

Payment of interest on foundation
funds(4,081)(4,081)(4,081)

Net surplus

23,26323,26323,263

171

171

171

Additions to reserve for fundredemption

9,100

Reversal of equalized reserve fordividends to policyholders(9,100)(227)

Reversal of land revaluationdifferences

227

Net changes, excluding foundation
funds and others
Net changes in the fiscal year
Ending balance

-

-

-

18

9,100

(227)

8,668

17,55917,55991,000166,000

281

328

44,4007,091

47,55899,378356,660

Total
valuation andtranslation
adjustments

Total
net assets

52,442391,543

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

97,625Landrevaluationdifferences(45,183)

Changes in the fiscal year:
Additions to reserve for dividends topolicyholders(1,794)

Additions to reserve for future
lossesPayment of interest on foundation
funds(4,081)

Net surplus

23,263

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

171
115,574(171)

115,403

115,403

Net changes in the fiscal year

115,574(171)

115,403

132,962

Ending balance

213,200(45,354)

167,845524,505

34

Asahi Mutual Life Insurance Company

Year ended March 31, 2022

(Millions of Yen)
Foundation funds and others
Surplus

Beginning balance

Foundation
funds

Reserve forredemption offoundation
funds

Reserve forrevaluation

91,000166,000

281

Other surplus

Total
foundation
funds andothersReserve for
future losses

Reserve forfund
redemption

Equalized
reserve fordividends topolicyholders

Unappropriatedsurplus(loss)

328

44,4007,091

47,55899,378356,660(2,153)(2,153)(2,153)Total
surplus

Changes in the fiscal year:
Additions to reserve for dividends topolicyholders
Additions to reserve for future
losses19(19)

Payment of interest on foundation
funds(4,089)(4,089)(4,089)Net surplus

22,92422,92422,924

1,384

1,384

1,384

Additions to reserve for fundredemption

9,100

Reversal of equalized reserve fordividends to policyholders(9,100)(108)

Reversal of land revaluationdifferences

108

Net changes, excluding foundation
funds and others
Net changes in the fiscal year
Ending balance

-

-

-

19

9,100

(108)

9,055

18,066

18,06691,000166,000

281

347

53,5006,983

56,614

117,444374,726

Total
valuation andtranslation
adjustments

Total
net assets

167,845524,505

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

213,200Land
revaluationdifferences(45,354)

Changes in the fiscal year:
Additions to reserve for dividends topolicyholders(2,153)

Additions to reserve for future
lossesPayment of interest on foundation
funds(4,089)Net surplus

22,924

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

1,384(39,264)(1,384)(40,648)(40,648)

Net changes in the fiscal year

(39,264)(1,384)(40,648)(22,582)

Ending balance

173,936(46,739)

127,197

501,923

35

Asahi Mutual Life Insurance Company

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

Year ended
March 31, 2021

Year ended
March 31, 2022

47,55856,614

108

-

108

-

47,66756,614

15,361

15,390Reserve for dividends to policyholders

2,153

2,121

Net surplus (loss)

13,20813,26919

19

Interest on foundation funds

4,089

4,040

Voluntary surplus reserves

9,100

9,210

9,100

9,100

-

110

32,30541,223

Unappropriated surplus (loss)
Reversal of voluntary surplus reserves
Reversal of equalized reserve for dividends topolicyholders
Total
Appropriation of surplus (loss)

Reserve for future losses

Reserve for fund redemption
Equalized reserve for dividends to policyholders
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, 2021
Claims against bankrupt andquasi-bankrupt obligors

As of March 31, 2022
437

453

Claims with collection risk
Delinquent loans three or moremonths past due
Restructured loans

139

70

98

66

20

20

Subtotal694

609（Percentage of total）(0.12)(0.11)

Claims against normal obligors

569,541

530,361

Total

570,236

530,971

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, other thanthe 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.

37

Asahi Mutual Life Insurance Company

９. Solvency Margin Ratio(Millions of Yen)
As of March 31, 2021 As of March 31, 2022

Total solvency margin（Ａ）

1,063,948

1,009,231

Foundation funds and surplus

350,417368,564

Reserve for price fluctuation

45,68048,210Contingency reserve

62,44877,889100

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

252,740

204,154

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

28,681

29,306

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

141,363

145,556

Qualifying subordinated debt

167,173

141,424

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

Deduction-(25,000)

15,343

18,839218,912211,372

General allowance for possible loan losses

OthersTotal amount of risk

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

Insurance risk

R1

12,613

12,078

Third sector insurance risk

R810,446

10,727

Risk of assumed yield

R2

69,446

66,749Minimum guarantee risk

R7

1,040

1,027

Investment risk

R3

142,459

137,767

Operational risk

R4

4,720

4,567

972.0%

954.9%

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 the Public Notice No. 50 of the Ministry of Finance of 1996.
2. "Excess amount of policy reserves based on full-time Zillmer method", "Qualifying subordinated debt" and "Excess
amount of policy reserves based on full-time Zillmer method and qualifying subordinated debt excluded from 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, 2021

As of March 31, 2022

AmountAmountIndividual variable insurance

28,07828,175

Individual variable annuities--

Group annuity products--

28,07828,175Total（2）Individual Variable Insurance (Separate Account)(ⅰ)Sum Insured of Policies in Force
As of March 31, 2021

As of March 31, 2022

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

89,766

12

86,879Total

12

89,766

12

86,87939

Asahi Mutual Life Insurance Company

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

As of March 31, 2021

As of March 31, 2022

AmountAmountPercentage

Percentage

Cash, deposits, call loans

1,676

6.0

1,475

5.2

Securities

26,30793.7

26,601

94.4

Domestic bonds

6,128

21.8

6,733

23.9

Domestic stocks

9,011

32.1

7,914

28.1

Foreign securities

11,16739.8

11,95342.4

Foreign bonds

3,450

12.3

3,684

13.1

Foreign stocks and other foreign securities

7,716

27.5

8,269

29.3

-

-

-

-

Loans

-

-

-

-

Others

94

0.3

98

0.4

Allowance for possible loan losses

-

-

-

-

28,078100.0

28,175

100.0

Other securities

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

Year ended
Year ended
March 31, 2021 March 31, 2022

AmountInterest, dividends and other income

Amount

440

518

3,096

3,526

-

-

5,174

3,268

Foreign exchange gains

32

36

Gains on derivative financial instruments--

Other investment income

0

0

1,694

1,327

Losses on redemptions of securities

13

1

Losses on valuation of securities

1,252

3,787

Foreign exchange losses

43

33

Losses on derivative financial instruments--

Other investment expenses

0

0

5,740

2,199

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

Losses on sales 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, 2021

Year ended
March 31, 2022

Ordinary income

604,297

610,408

Ordinary profit

34,95029,321

Net surplus attributable to the Parent Company

21,43019,685Comprehensive income

137,508(20,254)(Millions of Yen)

As of March 31, 2021
Total assets
Solvency margin ratio

41

As of March 31, 2022

5,540,449

5,502,292

992.4%

982.2%

Asahi Mutual Life Insurance Company

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

As of March 31, 2021 As of March 31, 2022
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-salesecurities, 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

44,149113,000
25,094
4,598,851
303,451
378,046
221,081
150,539
1,459
1,589
3,376
29,941
16,93513,00614987
46,670
494
152
1
(406)
5,540,449

47,030111,000
22,5344,536,365
311,416
369,142
216,027
146,679
2,194
1,175
3,065
33,25523,347
9,907
11
6,788
64,605
524
168
(550)
5,502,292

4,477,995
28,572
4,419,372
30,050680
127,773295,766
32,91445,68022,354
16,2681
5,019,435

4,426,229
32,0254,365,560
28,644776
102,424
378,694
32,852
48,2102,913
15,711
5,007,812

91,000166,000
281
97,154354,436

91,000166,000
281
111,982369,264

213,201

173,938(45,354)(1,349)166,49779
521,014
5,540,449(46,739)(2,077)125,12194
494,480
5,502,292

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
Other extraordinary gains
Extraordinary losses:
Losses on disposal of fixed assets
Impairment losses
Provision for reserve for price fluctuation
Losses on reduction entry of real estate
Other extraordinary losses
Surplus before income taxes
Income taxes-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, 2021

(Millions of Yen)
Year ended March 31, 2022

604,297
391,410
146,309
117,912
15,249
77
387
6,941
5,740
66,577569,347
385,384
112,015
122,158
68,241
77,5385,431
3
334,559
4,470
485
5,520
19
65
8,898
10
5,503
9,584
115,565
33,833
34,950
275
146
129
8,605
1,484
2,971
2,450
5
1,694
26,620
10,226(5,074)
5,152
21,46737
21,430610,408
395,434
144,550
120,142
11,950
317
3,067
6,872
2,199
70,423581,087
382,521
107,517
116,767
73,011
79,236
5,988
3,456
3,453
3
36,655
4,876
1,133
11,177
273
48
2,510
141
5,511
10,981
123,403
35,05029,321
2,928
2,925
3
6,561
2,751
1,149
2,530
130
25,687
10,963(5,012)
5,950
19,73751
19,685

Asahi Mutual Life Insurance Company

（Unaudited Consolidated Statements of Comprehensive Income）
Year ended
March 31, 2021

(Millions of Yen)
Year ended
March 31, 2022

Net surplus

21,467

19,737

Other comprehensive income:

116,040(39,991)

115,575(39,263)

465

(728)

137,508(20,254)

137,471(20,305)

37

51

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

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
Purchases of monetary claims bought
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
Redemption of debt borrowing
Proceeds from issuance of bonds
Redemption of bonds
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, 2021

Year ended March 31, 2022

26,620
5,503
11,905
2,971(806)(48,624)
3
10(1,677)2,450(117,912)(14,976)
8,898
4,470
(387)
952
(540)
(2,837)
117
2,312(4,344)(125,891)
124,006(4,343)(3,820)(9,286)(19,335)

25,687
5,511
12,811
1,149
3,453(53,812)3
141(1,008)2,530(120,142)(1,833)
2,510
4,876(3,067)(636)(5,801)(3,396)
95
(437)
4,050
(127,314)
121,824(5,178)(3,562)(11,462)(25,694)

(93)
1,899
(415,682)
441,355(41,265)
115,364(47,257)
(884)
(485)
52,94933,614(10,079)
1,501(9,608)34,7632,573(438,244)
559,515(55,639)
50,961(49,969)737(1,133)68,801
43,106(8,703)
8,084(11,328)
56,854(10,000)
39,477(4,081)(38)(863)
24,49439,922
117,227
157,149

15,000(40,349)(4,089)(36)(803)(30,279)880
157,149
158,030

Asahi Mutual Life Insurance Company

（5）Unaudited Consolidated Statements of Changes in Net Assets
Year ended March 31, 2021

(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

81,429338,711(1,794)(1,794)(4,081)(4,081)

21,43021,430171

171

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

-

-

-

15,725

15,72591,000166,000

281

97,154354,436

Accumulated
remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

Total
net assets(1,814)50,627

81

389,420

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

Beginning balance

97,625Landrevaluationdifferences(45,183)

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(1,794)(4,081)
21,430171
115,575

(171)

465

115,869(1)

115,868

Net changes in the fiscal year

115,575

(171)

465

115,869(1)

131,593

Ending balance

213,201(45,354)(1,349)166,49779

521,014

46

Asahi Mutual Life Insurance Company

Year ended March 31, 2022

(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

97,154354,436(2,153)(2,153)(4,089)(4,089)19,685

19,685

1,384

1,384

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

-

-

-

14,827

14,82791,000166,000

281

111,982369,264

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

Beginning balance

213,201

Total

Land
revaluationdifferences

Accumulated
accumulated
remeasurements
otherof definedcomprehensive
benefit plans

Noncontrollinginterests

Total
net assets

79

521,014

income(45,354)(1,349)166,497

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(2,153)(4,089)19,685
1,384(39,263)(1,384)(728)(41,375)

14(41,360)

Net changes in the fiscal year

(39,263)(1,384)(728)(41,375)

14(26,533)

Ending balance

173,938(46,739)(2,077)125,12194

494,480

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 with the provisions set forth in the Insurance Business Act of Japanand 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 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 the disclosure 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 havebeen made to the consolidated financial statements issued domestically in order to present themin a format which is more familiar to readers outside Japan.
2.

Principles of Consolidation(1) Scope of consolidation
The consolidated subsidiaries as of March 31, 2022 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, 2022. As such non-consolidated
subsidiaries are not considered to materially affect any reasonable determination as to thefinancial position and result of operation of the Company’s group, these companies are
excluded from the consolidation.
(2) Application of equity method
Unconsolidated subsidiaries (such as Asahi Real Estate Management Co., Ltd, etc.) are
immaterial in terms of their impact on consolidated net income and surplus, and also48

Asahi Mutual Life Insurance Company

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 areequivalent to securities 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 Treatmentof Accounting and Auditing Concerning Policy-reserve-matching Bonds in Insurance
Industry” (Industry Audit Committee Report No. 21 issued by the Japanese Instituteof Certified Public Accountants (“JICPA”)), are stated at amortized cost (straight-line
method) determined by the moving average method.
iv) Investments in unconsolidated subsidiaries and affiliates not accounted for under theequity method are stated at cost.
v)

Available-for-sale securities except for the following are stated at fair market value
based on the market 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 atamortized cost (straight-line method) determined by the moving average method.
Stocks and others without a market price are stated at cost determined by the moving
average method. Net unrealized gains or losses on these available-for-sale securities,
net of tax, 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) of individual life insurance and individual annuities as policyreserve-matching bonds in accordance with “Temporary Treatment of Accounting and49

Asahi Mutual Life Insurance Company

Auditing Concerning Policy-reserve-matching Bonds in Insurance Industry” (Industry
Audit Committee Report No. 21 issued by the JICPA).
Since the fiscal year ended March 31, 2022, the Company changed its liability cash flow,which is the premise of assessing the duration to outstanding insurance liabilities, from a“Term of future 30 years” to a “Whole period” for the sub-group including Individual life
Insurance and Individual Annuities (excluding Whole Life Insurance with variable interest
rate accumulation, Accumulation Insurance with variable interest rates and New Single
Premium Individual Annuity effective on and after April 2, 2012). This change did not haveany effects on the consolidated balance sheet and consolidated statement of income as ofand for the fiscal year ended March 31, 2022.
(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 ofLand (Act No. 34 promulgated on March 31, 1998). The difference between fair value andbook value resulting from the revaluation, net of related taxes, is recorded as land
revaluation differences as a separate component of net assets and the related tax isrecorded 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 with certain 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.

50

Asahi Mutual Life Insurance Company

(7) Allowance for possible loan losses
Allowance for possible loan losses is provided in accordance with the Company’s standardsof self-assessment 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 whoare substantially bankrupt (hereinafter “substantially bankrupt borrowers”), theCompany provides the remaining amount of credits after the direct write-off described
below and the deductions of the amount expected to be collected through the disposalof collateral or the execution of guarantees.

ii)

For credit to borrowers who are not currently bankrupt but have a high risk ofbankruptcy (hereinafter “not currently bankrupt borrowers”), the Company provides
the amounts deemed as necessary considering the borrowers’ ability to pay, within theamounts after deductions of the amount expected to be collected through the disposalof collateral or the execution of guarantees.

iii) For credit to borrowers other than the above, the Company provides the amounts
calculated by multiplying 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 self-assessment on credit quality. The results of the assessment are reviewed
by the audit department, which is 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 deemednecessary in accordance mainly with the Company’s standards of self-assessment andwrite-offs and reserves on credit quality.
For credit to legally bankrupt borrowers and substantially bankrupt borrowers, theamounts remaining after deductions of collateral value or the amounts collectible throughthe execution of guarantees are written-off directly from the book value as the estimateduncollectible amounts. The amount written-off as of March 31, 2022 was ¥24 million.
(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 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 ofseven years starting the following year.

■

Prior service cost is charged to income when incurred.

51

Asahi Mutual Life Insurance Company

(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).
The Company mainly applies the following hedging activities:
The Company applies deferred hedge accounting and the exceptional accounting treatment(“Tokurei-shori”) 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 toforeign 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 to hedge foreign exchange rate fluctuation exposures on the foreign currencydenominated bonds issued by the Company.
The Company also applies designated hedge accounting (“Furiate-shori”) for the foreign
currency-denominated transactions other than the above.
The effectiveness of a hedge is mostly assessed by a ratio analysis, comparing thefluctuations in the fair value 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 tax-exclusion method. The consumption taxes on certain assets, which are notdeductible 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) is 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 therelevant amounts received.
Of insurance premiums, the portion corresponding to the period that has yet to pass as ofthe 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.

52

Asahi Mutual Life Insurance Company

(13) Reinsurance revenue
Reinsurance revenue is recorded as reinsurance claims and others received based on the
proportion ceded in reinsurance and others stipulated in the reinsurance contracts in thereporting 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 new policy acquisition costs for reinsurance ceded are recorded as reinsurance
revenue, while the same amounts are recorded as reinsurance receivables as unamortizedceding commissions and amortized over the 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 which amounts calculated under policy conditions have been paid in theoccurrence of insured events under the policy conditions by the relevant amounts paid.
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 theCompany has payment obligation or the occurrence of insured events has not been reported
but the Company finds that insured events have already occurred, as of the end of the fiscal
year.
(15) Reinsurance premiums
Reinsurance premiums are recorded as reinsurance premiums paid based on the proportion
ceded in reinsurance 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 have been reinsured is not set aside in accordance with Article 71, Paragraph
1 and Article 73, paragraph 3 of the Enforcement Regulation of the Insurance Business Act.
(16) Policy reserves
Policy reserves are calculated as stated in accordance with the methods stated in thestatement of calculation procedures for insurance premiums and policy reserves (Article 4,
Paragraph 2, Item 4 of the Insurance Business Act) pursuant to Article 116, Paragraph 1of 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 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 thefollowing method:
In regard to the policies subject to the standard policy reserves, the method as prescribedby the Commissioner of Financial Services Agency (Japanese Ministry of Finance Public
Notice No. 48, 1996) is applied.

53

Asahi Mutual Life Insurance Company

In regard to the policies not subject to the standard policy reserves, the net level premium
method is applied.
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 inorder 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
methods.
i)

Calculation method
Real estate and other assets used for insurance business operations are classified as
one asset group as 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 forreal estate used for multiple purposes, the asset group to which the real estate belongs
is decided depending on usage rate and others.
The Company identifies signs of impairment losses in asset groups when earnings
from business operations using the asset groups continuously become negative.
As for asset groups for which signs of impairment losses are identified, when total
amounts of undiscounted net future cash flows from the asset groups are less thantheir book values, the Company recognizes impairment losses and reduce the bookvalues to their recoverable amounts.
The recoverable amounts of real estate and other assets for insurance business
operation and real estate for rent are determined at value in use or net realizablevalue. The recoverable amounts of real estate not in use and real estate scheduled tobe sold are net realizable value. Value in use is determined as the discounted present
value of estimated net future cash flows and discount rate used in the calculation isbased on the cost of capital.
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.

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. Theseassumptions may be affected by economic condition and changes specific to asset
groups.

54

Asahi Mutual Life Insurance Company

iii) Effects on financial statements for the following fiscal year
While the Company considers key assumptions for the estimated net future cash flows
which are used 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 be affected by future real estate market trends. In case that net
realizable value decreases as a result of this, impairment losses may occur in thefollowing 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 sheet) is amortized using the straightline method over the estimated useful lives.
2.

Accounting Changes
The Company has applied “Accounting Standard for Fair Value Measurement” (ASBJ
Statement No. 30, issued on July 4, 2019) and others from the fiscal year ended March 31,
2022. In accordance with the transitional treatment set forth in Paragraph 19 of"Accounting Standard for Fair Value Measurement" and Paragraph 44-2 of "AccountingStandard for Financial Instruments" (ASBJ Statement No.10, July 4, 2019), the Company
has applied new accounting policies prospectively. As a result, available-for-sale securities,of which domestic listed stocks, domestic stock exchange-traded funds, domestic listed realestate investment trusts, foreign stock exchange-traded funds for which hedge accounting
is not applied, foreign bond exchange-traded funds for which hedge accounting is notapplied and foreign currency-denominated bonds for which hedge accounting is not applied,
are changed to be stated at fair value based on the market prices at the balance sheet datefrom fair value based on the average of the market prices during the final month of the
fiscal year.
In determining to recognize impairment losses on available-for-sale securities, theCompany has used fair value based on the average of market prices during the final monthof fiscal year as before.

3.

Accounting Standards Issued but Not Yet Effective

The Company and part of its subsidiaries made a request for approval for the application of thegroup tax sharing system in December 2021 and it is decided to be applied from the fiscal year
ending March 31, 2023.
The accounting standard and relevant implementation guidance issued by the fiscal year-end
but not yet effective is the “Practical Solution on the Accounting and Disclosure Under theGroup Tax Sharing System” (ASBJ PITF No.42) and its contents are as follows:

55

Asahi Mutual Life Insurance Company

i)Overview
The practical solution was issued to stipulate the accounting and disclosure treatmentof corporate tax, local corporate tax and tax effect accounting when applying the grouptax sharing system, following the “Act for Partial Amendment of the Income Tax Act,etc.” (Act No.8, 2020) enacted on March 27, 2020 which requires revision of theconsolidated taxation system and transition to the group tax sharing system.

ii)

Schedule date of application
The practical solution is scheduled to be applied from the beginning of the fiscal year
ending March 31, 2023.

iii) Effects of application of the practical solution
The effects of the application are under assessment at the time of preparing these
consolidated financial statements.
4.

Changes in Reporting Method

Following the revision of the Enforcement Regulation of the Insurance Business Act, claims to
be disclosed are classified in the revised categories in the following “Note 9. Claims”.
5.

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 withvariable interest rates and new single premium individual annuities which have aneffective date on or after April 2, 2012, the Company mainly invests in domestic bonds,
engaging in matching asset liability management, or Matching ALM, which aims atmatching 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 yen-denominated fixed income investments, including bonds and loans, as the coreof its asset portfolio. The Company also holds domestic stocks, foreign securities and realestate 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 the Company. As the major financial instruments,
securities are exposed to market risk and credit risk, loans are exposed to credit risk andexchange rate fluctuation risk, and derivatives are exposed to market risk and credit risk.
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 and sensitivity analysis which analyze the effect on the Company’s
whole portfolio, simulating scenarios of deteriorating market environments. This is for the56

Asahi Mutual Life Insurance Company

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 throughVaR method and controls the amount of risks within an acceptable range. Furthermore, theCompany assigns in-house credit ratings to our borrowers in accordance with thecreditworthiness of each borrower. Strict credit research of each 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 inaccordance with its credit risks to avoid the concentration of credit risks on specific corporations
and specific corporation groups. 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 and liabilities as of March 31, 2022 were as follows. The following table does not include
cash and deposits, call loans and payables under securities borrowing transactions which aremostly settled in a short term and their fair values approximate their book values.
Millions of Yen
As of March 31, 2022

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¥22,534
21,577957
4,470,196
26,601
280,0702,028,714
2,134,809
311,416
32,199279,217
4,804,147
102,424
41,000143,424(89,485)(2,555)(86,930)

Fair Value¥

24,25523,297957
4,630,893
26,601
310,342
2,159,139
2,134,809
317,500
32,199285,301
4,972,648
103,200
42,260145,460(89,485)(2,555)(86,930)

Difference
¥

1,720
1,720
160,696
30,272
130,424
6,083
6,083
168,501
776
1,260
2,036
-

* 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 not included in the table above. The amount of the unlisted stocks and others,
including investments in subsidiaries and affiliates, reported in the consolidated balance sheet
was ¥22,156 million as of March 31, 2022.
Investments in partnerships and others for which transitional measures are applied inaccordance with Paragraph 27 of “Implementation Guidance on Accounting Standard for Fair
Value Measurement” (ASBJ Guidance No. 31, issued on July 4, 2019) are not included in the57

Asahi Mutual Life Insurance Company

table above. The amount of the investments in partnerships and others, reported in the
consolidated balance sheet was ¥44,012 million as of March 31, 2022.
6.

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 accordancewith the observability 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 thanLevel 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

Level 1
Monetary claims bought
Available-for-sale securities
Securities *1
Trading securities
National government bonds andlocal government bonds
Corporate bonds
Domestic stocks
Foreign stocks
Foreign bonds
Available-for-sale securities
National government bonds andlocal government bonds
Corporate bonds
Domestic stocks
Foreign bonds
Total assets
Derivative financial instruments *2
Currency-relatedInterest-related¥

Millions of Yen
As of March 31, 2022
Fair Value
Level 2
Level 3

Total

- ¥
- ¥
580,435 1,169,127
24,719
1,882

957 ¥
957
957
957
29,482 1,779,045
26,601

5,830
7,914
8,269
2,705
555,716902
979
1,167,245

29,482

5,830
902
7,914
8,269
3,684
1,752,444

39,829413,036
102,850
580,435-

685
426,840
739,719
1,169,127(89,755)(89,755)-

29,48230,440270
270

40,514
426,840
413,036
872,053
1,780,003(89,485)(89,755)
270*1

Investment trusts for which transitional measures are applied in accordance with Paragraph 26 of“Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance
No. 31, issued on July 4, 2019) are not included in the table above. The balance sheet amount of
the investment trusts was \382,365 million as of March 31, 2022.

*2

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

58

Asahi Mutual Life Insurance Company

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

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¥

Level 1Millions of Yen
As of March 31, 2022
Fair Value
Level 2
Level 3

- ¥1,752,190
36,939- ¥592,381
148,494

23,297 ¥23,29723,29723,297
124,909 2,469,481
124,909
310,342

36,9391,715,251

92,90055,594
443,887

124,909-36,93992,900180,503
2,159,139

1,715,251
1,752,190-

51,082392,804
592,381
103,200
103,200

317,500
32,199285,301
465,70742,26042,2601,766,334
392,804
317,500
32,199285,3012,810,279
103,200
42,260145,460

Total(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“Accounting Standard 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 andgovernment bonds. In the case the market is inactive even if the quoted market priceis 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.
Fair values of investment trusts are measured at the disclosed net asset value andothers. Investment trusts for which transitional measures are applied in accordancewith Paragraph 26 of “Implementation Guidance on Accounting Standard for Fair
Value Measurement” (ASBJ Guidance No. 31, issued on July 4, 2019) are notcategorized into any level.

ii)

Loans
As credit exposure for policy loans without specific repayment periods is limited to the59

Asahi Mutual Life Insurance Company

amount of the cash surrender value, the Company considers book value as fair value
with assumption that fair value 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 theoreticalprices calculated by discounting the future cash flows to the present value by type ofloan, 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 not currently
bankrupt borrowers is stated at the amounts by deducting estimated losses from thebook value before direct write-offs. Loans to legally bankrupt borrowers, substantiallybankrupt borrowers and not currently bankrupt borrowers 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 payable issued by the Company are categorized as level 2. The fair value ofbonds 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 thefair value of currency swaps.
iv) Loans payableAs for loans payable, the fair value of loans is stated at theoretical prices calculatedby discounting the future cash flows to the present value, using market interest rates
with some adjustments based on the Company’s credit risk. Loans payable arecategorized as level 3.
v)

Derivative financial instruments
As for derivative financial instruments, the fair values of foreign currency forward
contracts are 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 andinterest rate swaptions are stated at the quoted prices offered by counterparty
financial institutions.
In evaluation of derivative financial instruments, the Company maximizes the use ofobservable inputs. In the case unobservable inputs are not used or impact ofunobservable inputs are not material, 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
consolidated 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.

60

Asahi Mutual Life Insurance Company

ii) Reconciliation between the beginning and ending balance, and net unrealized gains(losses) recognized as gains (losses) for the fiscal year
Millions of Yen
Monetary claimsboughtSecurities

Available-forsale securities

Available-forsale securities

OthersForeign bonds

(i)

（ii）

Year ended
March 31, 2022

Beginning balance¥
Gains (losses) and othercomprehensive income for the
fiscal year:
Gains (losses) recorded forthe fiscal year *1
Other
Other comprehensive
comprehensive income
incomerecorded 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 *3Ending balance
Net unrealized gains (losses) on
financial assets and liabilities heldat the balance sheet date among
the amount recorded to gains (losses)
for the fiscal year *1

Derivative
financial
instruments
Total(i) + (ii)
Stock-related

969 ¥26,853 ¥27,822 ¥

-

16

75

91

(24)

(20)

2,406

2,385

(24)

36

(2,330)(2,293)

-

(28)
957

10,711(8,157)29,482

10,682(8,157)30,440

294
270

-

2,406

2,406

(24)

*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.
*3 Those amounts are transferred from level 3 to level 2 since it has become possible to obtain observable data.
Those transfers were made at the end of the fiscal year.

iii) Description of the fair value evaluation process
The Company establishes policies and procedures for measuring the fair value in theactuarial and accounting department and the risk management department. In
accordance with these policies and procedures, the risk management department
measures the fair value. The validity of the evaluation methods and inputs used tomeasure fair value and the appropriateness of categorization of fair value are verified
in the independent division in the risk management department.
In fair value measurement, valuation models in which the nature, characteristics andrisks of individual assets are most appropriately reflected are used. In addition, whenquoted prices obtained from third parties are used, the validity of the prices is verified
by appropriate methods such as confirmation of evaluation method and used inputs
and comparison with the fair values of similar financial instruments.

61

Asahi Mutual Life Insurance Company

7.

Investments and Rental Properties

The Company holds investment and rental properties such as office buildings in Tokyo and otherareas. The carrying amount and the fair value of investment and rental properties were¥239,331 million and ¥283,478 million as of March 31, 2022. 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 accordance with real estate appraisal
standards.
8.

Securities Lent under Lending Agreements

The amount of securities lent under lending agreements was ¥218,367 million as of March 31,
2022.
9.

Claims

The total amount of claims against bankrupt and quasi-bankrupt obligors, claims withcollection risk, delinquent loans three or more months past due and restructured loans, whichwere included in claims, was ¥609 million as of March 31, 2022.
i)

Claims against bankrupt and quasi-bankrupt obligors were ¥453 million as of March 31,
2022.

ii)

Claims with collection risk were ¥70 million as of March 31, 2022.

iii) Delinquent loans three or more months past due were ¥66 million as of March 31, 2022.
iv) Restructured loans were ¥20 million as of March 31, 2022.
Claims against bankrupt and quasi-bankrupt obligors are claims to obligors who are subject tobankruptcy, corporate reorganization or rehabilitation or other similar proceedings and otherobligors in serious financial difficulties.
Claims with collection risk are claims to obligors with deteriorated financial condition andresults 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 of principal are delinquent for three months or more from the due dates under theterms of the related loan agreements, excluding those claims classified as claims against
bankrupt and quasi-bankrupt obligors and claims 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 andsupporting the borrowers in the restructuring of their businesses. 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 amount of claims against bankrupt andquasi-bankrupt obligors described above by ¥24 million as of March 31, 2022.

62

Asahi Mutual Life Insurance Company

10. Accumulated Depreciation of Tangible Fixed Assets
Accumulated depreciation of tangible fixed assets totaled ¥286,793 million as of March 31, 2022.
11. Separate Accounts
Total assets in separate accounts provided for in Article 118 of the Insurance Business Act were¥28,175 million as of March 31, 2022. The amounts of separate account liabilities were the sameas separate account assets.
12. 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, 2022¥
30,050
2,153
3,562
3
¥
28,644

13. Stocks of Unconsolidated Subsidiaries and affiliates
The amount of stocks of unconsolidated subsidiaries and affiliates the Company held as ofMarch 31, 2022 was ¥7,888 million.
14. Pledged Assets
Assets pledged as collateral as of March 31, 2022 were securities in the amount of ¥80,591
million.
15. Unamortized Ceding Commissions
The 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, 2022 was ¥6,391 million.
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,
2022 was ¥25,709 million. No assets were pledged as collateral as of March 31, 2022.

63

Asahi Mutual Life Insurance Company

17. Commitment LineAs of March 31, 2022, there were unused commitment line agreements under which theCompany is the lender of ¥13,947 million.
18. Subordinated Bonds Payable
As of March 31, 2022, bonds payable are subordinated bonds payable, for which the repayments
are subordinated to other obligations.
19. Subordinated Loans Payable
As of March 31, 2022, other liabilities included subordinated loans payable of ¥41,000 million,
for which the repayments are subordinated to other obligations.
20. Contributions to Policyholders Protection Corporation
The estimated future contributions to the Life Insurance Policyholders Protection Corporationof Japan under Article 259 of the Insurance Business Act as of March 31, 2022 were ¥8,260
million. These contributions are charged as operating expenses in the fiscal years in which they
are paid.
21. 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)

Millions of Yen
As ofMarch 31, 2022¥
70,651
15,33255,31958,064¥(2,745)Major components of deferred tax assets/liabilities were as follows:

Millions of Yen
As ofMarch 31, 2022
Deferred tax assets
Contingency reserve
Reserve for price fluctuation
Net defined benefit liabilities
Impairment losses
Net unrealized losses on available-for-sale securities
IBNR reserves
Deferred tax liabilities
Net unrealized gains on available-for-sale securities

64¥

21,797
13,450
9,165
7,223
4,394
3,944

¥

56,417

Asahi Mutual Life Insurance Company

(2) The statutory tax rate was 27.9% for the fiscal year ended March 31, 2022. The main
factors causing the difference between the statutory tax rate and the actual effective
tax rate after considering deferred taxes were as follows:Year ended
March 31, 2022
(4.4)%

Interest on foundation funds

22. 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-funded type 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

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, 2022¥
41,202
1,889
407
520
(3,622)¥40,397

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

65

Millions of Yen
Year ended
March 31, 2022
¥
8,782
80
(818)
242
(217)
¥
8,069

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, 2022¥
40,397(8,069)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 sheet

32,32732,852(524)¥

32,327iv) 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)

Millions of Yen
Year ended
March 31, 2022
¥
1,889
407
(80)
329
¥
2,545

Breakdown of items included in other comprehensive income
The breakdown of items included in other comprehensive income (before tax effects)
was as follows:

Millions of Yen
Year ended
March 31, 2022¥
(1,010)¥(1,010)

Amortization of actuarial differences
Totalvi) 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, 2022
¥
2,885
¥
2,885

Unrecognized actuarial differences
Total

66

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 asfollows:
As ofMarch 31, 2022
Stocks
36%
Bonds
18%
Others
46%
Total
100%

viii) Method for determining the expected long-term rate of return
To determine the expected long-term rate of return on pension plan assets, theCompany 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 ofassets 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

67

As of
March 31, 2022
1.0%
0.8%
1.6%

Asahi Mutual Life Insurance Company

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, 2022
¥
4,943
6,239
767

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, 2022
¥
1,073
1,448
8,655

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, 2022¥
272
1

Losses on trading securities were losses on sales of ¥1,133 million for the fiscal year ended
March 31, 2022.
Losses on derivative financial instruments included net valuation gains of ¥641 million for the
fiscal year ended March 31, 2022.
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, 2022 was ¥6,989 million, which was included in reinsurance
revenue.
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, 2022 was ¥597 million, which was included in reinsurance
premiums.

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Asahi Mutual Life Insurance Company

3.

Impairment Losses of Fixed Assets

For the fiscal year ended March 31, 2022, 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 the 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 adecrease in the level of rental income and a declining trend in the market prices of land,
the Company reduced the book values of such real estate for rent, real estate not in use
and real estate scheduled to be sold to their recoverable amounts. The write-downs wererecognized as impairment losses and included in the extraordinary losses.
(3) Asset groups for which impairment losses were recognized and losses by classification of
fixed assets

Millions of Yen
Year ended
March 31, 2022
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)

¥

622
526
1,149
-

¥

622
526
1,149

(4) Calculation method of recoverable amounts
The recoverable amounts of real estate for rent are determined at net realizable value orvalue 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 3.3% for the fiscal year ended March
31, 2022. 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, 2022
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.

¥

¥

(53,451)(530)(53,982)
14,719(39,263)(1,339)329(1,010)282(728)(39,991)

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 are comprised 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 risk of changes in value.

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Asahi Mutual Life Insurance Company

（6）Disclosed Claims Based on Insurance Business Act(Millions of Yen, ％)As of March 31, 2021

As of March 31, 2022

Claims against bankrupt and quasi-bankrupt obligors

437

453

Claims with collection risk

139

70

Delinquent loans three or more months past due

98

66

Restructured loans

20

20

Subtotal694

609（Percentage of total）(0.12)(0.11)

Claims against normal obligors

569,541

530,361

Total

570,236

530,971

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, 2021 As of March 31, 2022
Total solvency margin（Ａ）

1,054,961

1,021,040

Foundation funds and surplus

343,302358,018

Reserve for price fluctuation

45,68048,210Contingency reserve

62,44878,125--

Catastrophe loss reserve
General allowance for possible loan losses

101

288

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

252,742

204,157

Net unrealized gains on land × 85%

28,681

29,306(1,875)(2,885)

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

141,363

145,556

Qualifying subordinated debt

167,173

141,424

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

Deduction--

15,343

18,839212,597

207,900(in case of losses： × 100%)

Sum of unrealized actuarial differences and unrealized past service cost

OthersTotal amount of risk(

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

2

1

5

2

8

9

（Ｂ）

2

2

3

7

4

6

Insurance risk

R1

12,613

12,078

Ordinary insurance risk

R5

-

-

Disaster insurance risk

R6

-

-

Third sector insurance risk

R810,446

10,963

Small amount short-term insurance provider insurance risk

R9

-

-

Risk of assumed yield

R2

69,446

66,749Minimum guarantee risk

R7

1,040

1,027

Investment risk

R3

136,232

134,312

Operational risk

R4

4,595

4,502

992.4%

982.2%

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.

(8) 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.

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Asahi Mutual Life Insurance Company