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ANNUAL REPORT 2013
Year Ended March 20, 2013

CONTENTS
Visions of CO-OP Insurance

01

Financial Highlights

02

Message from the President

03

Outline of the JCIF

04

Types of CO-OP Insurance

06

Payment of Claims

07

Risk Management and Compliance System

08

Activities

10

Fiscal 2012 CO･OP Insurance Business Overview

12

Balance Sheet

14

Income Statement

15

Solvency Margin Ratio and Others

16

The official name of our organization is theJapan CO-OP Insurance Consumers' Co-operative Federation,commonly abbreviated as JCCU.

Visions of CO-OP Insurance
Through CO-OP Insurance and the mutual assistance of CO-OP members,
we are aiming to enrich society, promote cooperative activities,
develop CO-OP and improve the lifestyles of members based on covering
economic loss caused by the various risks in members’ lives.

1
We will offer insurance products that suit members’ needs with morereasonable premiums and better coverage.

2
We will promote communication between members and CO-OP employees,
and encourage a spirit of mutual aid among members.

3
We will offer members the opportunity to learn about insurance andacquire the ability to select the insurance that suits them most.

4
We will increase the social credibility of cooperative business by the stable
management of the insurance and the expansion of the insured.

5
We will positively face the problems of aging, health and welfare, andconduct activities to contribute to society, such as social welfare activities.

Japan CO-OP Insurance Consumers' Co-operative Federation

01

Financial Highlights
For the years ended March 20,

Thousands of
U.S. dollars*2

Millions of yen*1

2012

2013

2013

Ordinary income¥ 183,554¥ 191,310$ 2,002

Ordinary expenses

138,555

147,909

1,547

Ordinary surplus

44,99843,400454

Net surplus

8,494

8,463

88

Total assets

225,420

249,4122,610

Total liabilities

144,173

160,261

1,677

Total capital

81,247

89,151

933

Number of policies total

7,734,977

7,974,180—

Number of policies (diredt insurance)

7,300,132

7,536,152—¥ 11,210¥ 11,496

120

1,075.0

1,182.3—

As of March 20,

Amount insured (direct insurance total)(¥ billions/ $ millions)

Solvency margin (%)*1. Yen amounts are rounded down to the nearest ¥ 1 million.
*2. U.S. doller amounts are converted, for convenience only, at ¥ 95.55 = US$1.00, the rate prevailing on March 19, 2013, and rounded
down to the nearest $1 million.

Number of policies (all total)(thousand)

8,000

7,734

Amount insured
7,974(¥ billions)

12,00011,210

7,415
7,000

6,869

(direct insurance)

11,496

10,743

7,123
10,13910,000

9,598

6,000
8,000
5,000

4,000

6,000

3,000
4,000
2,000
2,000
1,000

0

2009

2010

2011

2012

2013
(As of March 20)

02

Annual Report 2013

0

2009

2010

2011

2012

2013
(As of March 20)

Message from the President
In fiscal 2012, the policyholder base of CO-OP Insurance products grew to 7.97 million, nearly reaching
the threshold of 8 million. CO-OP Insurance Zutto-i., a whole-life mutual insurance product, has beenwell-received, attracting 150,000 policyholders within two years of its launch. Total premium income
increased to 160.8 billion yen, and payment of insurance claims grew to 60.4 billion yen, paid out to1.27 million policyholders.
As a result, we were able to make premium rebate payments that were on a par with those of past
years, strengthen our financial foundation, and steadily perform our business continuity planning(BCP).
Since the Great East Japan Earthquake two years ago, in our CO-OP Insurance business, we paid out
1.59 billion yen in claims to 2,800 policyholders and disaster relief money totaling 1.97 billion yen to
72,000 policyholders. We intend to make all possible efforts to pay out claims down to the last eligible
policyholder. Furthermore, in fiscal 2012, based on lessons learned from the earthquake disaster, we
relocated our divisions responsible for contract management and claims payments to a location lesssusceptible to disaster risks. In fiscal 2013, we are also planning to establish a computer backup centerand build two administrative centers at two locations to handle claims payments and other clericaltasks.
This fiscal year, we launched the CO-OP Insurance Medium-term Business Plan 2015 with the aim of
becoming the first-choice provider of mutual insurance that serves as the centerpiece of livelihood
security for Co-op member households, which is a target set out in the CO-OP Insurance Long-term
Vision 2020 that was formulated in fiscal 2012. Under the plan covering the next three years, we will
strive to establish a new framework for promoting mutual insurance by expanding our
education/training programs for insurance solicitors, increasing the number of mutual insurance
specialists, and offering more specialized follow-up programs with the aim of improving the quality ofpolicyholder service and protection.
This annual report primarily consists of reports on initiatives implemented during fiscal 2012. I truly
hope that this report will help you to better understand our CO-OP Insurance business and products.
We are determined to continue making concerted efforts to pursue our business operations. We
humbly thank you for your ongoing support of CO-OP Insurance.

Tomomi Yano
President
Japan CO-OP Insurance Consumers’
Co-operative Federation (JCIF)Japan CO-OP Insurance Consumers' Co-operative Federation

03

Outline of the JCIF
JCIF, Co-op and JCCU
Our organization is a union of 154 consumer cooperative societies from across the nation. Although eachmember Co-ops is an independent legal entity, each provides CO-OP insurance to its members incooperation with the union.
The JCIF has been established to take over and exclusively conduct all mutual insurance businesspreviously conducted by our member Co-ops.
Co-op members
Member co-ops
Regional Co-ops, Co-op Associations etc.
Promotion support of product supply, social activities etc.
JCIF

● CO-OP Insurance business.
● Promotion of Life-Planning Activities.

JCCU● Improvement and development of CO-OP brand products, supplying business etc.
● Welfare business etc.
● Support activities and communication with foreign CO-OPs.

Participation in international meetings etc.

Roles of Member Co-ops and JCIFThe JCIF will work to enhance ourrelationship with member Co-ops byfulfilling the requirements of our
specified role and acting cooperatively
to achieve our common goals.

Member Co-op

Co-op members, Policyholders
Window for thesubscription procedure

Member Co-ops Cooperative
business

Contract of
CO-OP Insurance

JCIF

Window for CO-OP Insurance

Each member Co-op acts as a service window for the subscription procedure and also provides
information about CO-OP Insurance. In addition, each member Co-op works to support its members byoffering insurance products tailored to a range of needs.

JCIF (Japan CO-OP Insurance Consumers’ Co-operative Federation)
The JCIF develops products tailored to the needs of its members and others.
As well as developing insurance products, the union receives premiums undertakes procedures related tothe payment of insurance claims and provides administrative support services to member Co-ops. It also
provides consulting services and responds to complaints.
●Each of the three unions of consumer cooperative societies which jointly constitute an insurance group has the dual roles of member
Co-op and JCIF.

JCIF is the Federation for Exclusively Providing Mutual Insurance Products
JCIF (Japan CO-OP Insurance Consumers’ Co-operative Federation) was established in November 5, 2008.
Up until FY2008, the JCCU and Co-ops offering direct mutual insurance* (Co-ops that were writing
direct “Tasukeai” insurance policies) were also simultaneously engaged in retail activities such as
operating stores, cooperative purchasing and operating home delivery services. To avoid conflict with the
newly revised Co-op Law, it was decided to jointly establish a new organization, the JCIF, to exclusively
provide mutual insurance products.
* Direct mutual insurance: a type of mutual insurance in which the insure is directly responsible for paying claims to policyholders.

04

Annual Report 2013

Structure of JCIFAs of June 21,2013

Product Development Div.
Accounting Div.

Administrative andDevelopment
Dept.

Asset Management Div.
Administration Div.
Personnel Planning Div.

GeneralAssembly
Management Planning Div.
Information and Communication Div.

Board
of
Auditors

Joint Management
Dept.

Risk Management Div.
Legal and Compliance Div.
Customer Satisfaction Promotion Div.

Board
of
Directors

Education and Learning Div.
Promotion Management Div.

Hokkaido and Tohoku Area Promotion Div.
Central Area Promotion Div.

Sales Promotion
Dept.

Kansai Area Promotion Div.
Cyuushikoku Area Promotion Div.
Kyusyu Area Promotion Div.

Publicity Planning Div.
Member Support Div.

Claims-related Service Management Div.
Contract Clerical Div.

Clerical Dept.

Call Center Management Div.
Planning Div.
Information Systems Div.

Internal Auditing Div.

Japan CO-OP Insurance Consumers' Co-operative Federation

05

Types of CO-OP Insurance
CO-OP Insurance Tasukeai

CO-OP Insurance i.-Plus— Medical Insurance— Term Life InsuranceThis insurance provides comprehensive coverage

This insurance simply provides cover for death,foraccident,

which can be added cancer, hospitalization, andhospitalization, surgery, death, disability members’surgery of the insured. The maximum sum insured

death of the insured, and damage to residencesis ¥ 30 million in death benefits for a reasonablecaused by fire or other perils. It is designed topremium.

meet the Co-op members’ demands for coverage

combining i-Plus with Tasukeai. The contract termthat is essential to their daily lives at a reasonable

is 10 years and the premium varies according topremium.

the age and sex of the insured.

outpatient

care

due

to

There are four plans for women, for children,
mainly to cover medical, and uniform medical andAdded

coverageisavailable

by

Coverage may be extended until the member
reaches the age of 85.

death cover.

CO-OP Insurance Zutto-i.

CO-OP Life Insurance New i.i.

— Whole life InsuranceThis

insurance

provides

cover

for

— Life Insurance

lifetime

hospitalization, surgery and death.

Basic plan that provides cover for death with therebate plan can be matched up with medical cover

There are 2 types. One is whole life insurance

and women’s health cover. The contract term iswhich covers lifetime death. The other is medical

renewable after five years with the option of a

insurance which covers lifetime hospitalization

rebate after the five years. Coverage may beand surgery.

extended until the member reaches the age of 80.
●CO-OP Insurance i.i. was stopped offer.

CO-OP Fire InsuranceThis insurance provides coverage against damage to residences caused by a wide range of
perils including fire, lightning, explosion, aircraft or vehicle crashes into residences,windstorm and flood, flooding from a third party residence, unexpected damaged from athird party and earthquakes etc.

Direct and Indirect Insurance Products Offered
CO-OP Insurance offers direct and indirect insurance products. Direct insurance products are offered by
JCIF and member Co-ops approved by the Ministry of Health, Labour and Welfare or local government
bodies.
The direct insurance products are Tasukeai, i-Plus and Zutto-i. CO-OP Fire Insurance and CO-OP Life
Insurance New i.i. are offered as indirect insurance products. The indirect insurance products forms
alliances with ZENROSAI* and property and casualty insurance firms to offer indirect insurance
products.
* ZENROSAI is Japan’s largest workers and consumers insurance cooperative organization that recognized by the Co-op Law. Also,
ZENROSAI is a member of JCIF. ZENROSAI and JCIF work together to provide a full line-up of CO-OP Insurance.

06

Annual Report 2013

Payment of Claims
Payment of Claims
Payment of claims, excluding that for CO-OP Fire Insurance, is made by JCIF via member Co-ops or the
CO-OP Insurance Center. (Payment of claims for CO-OP Fire Insurance is made by ZENROSAI.) Upon
receiving a claim request, we check the contract details and ask the policyholder for details about therequest and then send the necessary materials. CO-OP Insurance values swift and efficient payment
procedures from the viewpoint of policyholders. For example, basic information is printed on payment
claims documents in advance, and some procedures are simplified depending on the claim detail andamount.
CO-OP Insurance shortens the time from the reception of a claims request to payment in order toenhance policyholder satisfaction.

Flow of Claims

1 Reporting Occurrences

CO-OP
Insurance
Center(Call Center)2

Sending out
Documents for Claims

JCIF(Claim Payment Dept.)

3 Sending out Documents for Claims
Policyholder( Beneficiary )4 Payment and Sending out Notice of Payment*This flowchart is standard case of Participating Co-ops in Call center,
Consignment Co-ops, and Joint payment’s Co-ops.

Relief Money to Victims of Devastating Disasters
In the CO-OP Insurance plans, Tasukeai, i-Plus, Zutto-i, and i.i. policyholders receive Relief Money inaccordance with the CO-OP Insurance Regulations on Devastating Disaster Relief Money. These
regulations were made with the aim of providing a token of our sympathy to victims of devastating
disasters. CO-OP Insurance offers special assistance in accordance with the magnitude of natural
disaster. In the event of a devastating disaster occurring cooperate in order to ensure swift and certain
payment so that the burden on policyholder may be alleviated even slightly.

Japan CO-OP Insurance Consumers' Co-operative Federation

07

Risk Management and Compliance System
Risk Management System
In pursuing sound management of the mutual insurance business, JCIF makes efforts to identify risks andimplement proper risk management.
Risk associated with the mutual insurance business include the following: Product development risks;
Insurance underwriting risks (risks stemming from fluctuations in the rate of occurrence of insured accidents
against the forecasts made at the time of setting the premium); Asset management risks (risk of suffering aloss in the value of assets held, due to fluctuations in interest rates, stock prices, foreign exchange rates anddeterioration of the financial position of deposit or bond issuers); Office work risks and System risks, etc.
■ Product Development Risks and Insurance Underwriting Risks
Product development risks and insurance underwriting risks are risks that stem from fluctuations in
the incidence rate of accidents covered beyond the forecasts made at the time of setting thepremium. We manage these risks with due consideration for business stability. For example, we
make efforts to achieve an appropriate level of benefit payment rate by identifying, examining,
analyzing and regularly monitoring these risks, as well as verifying them when developing andreviewing products.
■ Asset management Risks
Asset management risks are the risks of suffering a loss in the value of assets held due to fluctuationsin interest rates, stock prices, foreign exchange rates, etc. or deterioration in the financial position offinancial institutions with which we conduct transactions.
We ensure appropriate management of these risks based on a set of rules including the Rules for
Asset Management and the Regulations for Managing Asset Management Risks, which weestablished in accordance with the Ordinance for Enforcement of the Consumer Cooperatives Act.
Under this system, we confirm the status of asset management execution, risks, etc. on a regularbasis at board meetings etc. In addition, we carry out sound asset management that best suits thenature of each fund and debt, focusing on safety, profitability.
■ ALM Risks
ALM risks are the risks incurred when asset and liabilities term are mismatched, forcing the company
to buy and sell assets, or to take on liabilities, when conditions are unfavorable.
We manage to secure the founds corresponding to liabilities by the setting a fair guaranteedyields, the monitoring of interest surplus and loss and so on.
■ Office Work Risks and System Risks
Office work risks are the risks of suffering a loss due to officers or staff executing inaccurate
administrative work, causing an accident, or committing a fraud.
System risks are the risks of suffering a loss due to flaws in our computer system including failure
and malfunction, or fraudulent use of our computers.
With respect to office work risks and system risks, we conduct analysis and assessment, identify
significant risks, and take protective measures. In addition, to prevent accidents in the office and insystem development and operations, we have in place the Rules of Conduct for Prevention of Serious
Accidents, the Information Security Policy and Reporting Operational Accidents.
08

Annual Report 2013

Policy on Solicitation
Based on the Law on Sales of Financial Products, JCIF has established the following CO-OP Insurance
Solicitation Policy. These guidelines are posted visibly at the JCIF and at member Co-ops handling CO-OP
Insurance. CO-OP Insurance sales personnel carry the guidelines in an all out effort to bolster compliance.

CO-OP Insurance Solicitation Policy
Notification to all members
Based on the Law on Sales of Financial Products, we have established the following CO-OP
Insurance Solicitation Policy.

1. When offering CO-OP Insurance, every effort will be made to comply with the Co-op Law, theLaw on Sales of Financial Products and the Consumer Contract Act to provide services in an
appropriate method.

2. When offering CO-OP Insurance, every effort will be made to ensure members fully understandproduct content and other important information.

3. When offering CO-OP Insurance, every effort will be made to respect the wishes of members, nottake up excessive amounts of members' time or space.

4. When a claim is made, every effort will be made to ensure swift settlement.
5.

Recognizing the importance of protection of privacy, contract information will be managed
stringently and appropriately.

6. Every effort will be made to gather member opinions and reflect these on future CO-OP Insurance
development and in offering CO-OP Insurance.

Business Operations Based on Policyholder Feedback(1) The consultation center receives complaints and opinions by telephone
CO-OP Insurance, when developing products and paying claims, is making improvements based onpolicyholder feedback. In order to receive more feedback and reflect the opinions in our business, weestablished the consultation center, which is dedicated to handling complains, opinions, and requests
in 2006.
◆ Complaints we received at the consultation center in FY2012

We had 127,792 complaints and requests in fiscal 2012.
Viewing the opinions we received as representing the voice ofour policyholders, we are striving to improve the problems.

Others32%

ThanksRequests

55%

10%Complaints 3%(2) Improvement efforts resulting from complaints and opinions we receive
We have introduced the management system to unify the management of complaints and opinions we
receive so that related departments can share and swiftly resolve any issues. In addition, we report allcomplaints and opinions to all departments once a week.
Japan CO-OP Insurance Consumers' Co-operative Federation

09

Activities
Life-Planning Activities
Life-Planning activities enable Co-op members to learn about money
matters in their lives. In the principle topic of Revising Coverage,
members gain the capability to independently select insurance that isreally necessary.
As an integral part of Life-Planning activities, JCIF is training
members and Co-op staff to be Life-Plan-Advisor (LPA). Participants of
LPA courses learn about life planning,

Co-op carries out the following Life-Planning activities:● Lectures on Revising Coverage● Training sessions on revising lifestyles● Life-planning lectures● Individual consulting● Life-Planning Humorous poem “Senryu”

insurance, taxation and finance incomprehensive lectures held by JCIF inorder to become LPA. As of March 20,
2013 there are 3,029 advisors active atmember Co-ops across Japan.

◆ Developments in life-Planning Activities
Life-Planning activities have

Number of participants

now become firmly established

40,000Participants in Life-planning Activities
36,854

as Co-op activities. In fiscal
2012, more than 80,000 people

Fiscal 201133,143Fiscal 2012

30,000in total participated in theactivities, principally in revisionof coverage.

22,78921,73520,00010,00010,913

9,378

7,878

7,133
3,586 3,0350LectureTraining
sessions

Training
session forchildren

2,342

1,816 1,752

1,169 1,089

Life-Planning
lectures

Indivisualconsulting“Senryu”
project

1,440

Othersthe number ofhits of HP

Health Improvement Activities
A fundamental issue for CO-OP Insurance activities is the improvement of the health and welfare ofpeople. From the position of assisting members and policyholders to improve their health, JCIF has
installed automatic blood pressure measuring devices at Co-op stores and offers free health consultations
by phone.

(1) Automatic Blood Pressure Measuring Devices Installed
JCIF has installed automatic blood pressure measuring devices at more than 313 Co-op storesthroughout Japan. Since managing blood pressure is paramount for preventing all lifestyle-related
illness, it is essential to consistently measure blood pressure from day to day. Members are welcome
to test their blood pressure level while shopping, making the devices very useful for managing their
day to day health.

(2) CO-OP Insurance Health Call Center
JCIF offers a free phone consultation service made available to Tasukeai,i-Plus and New i.i. policyholders, JCIF contracts specialist counselors including
doctors and nurses from governmental corporation to give advice on health,treatment and care-giving as well as instruction on which medial facility touse. During fiscal 2012 the call center fielded 39,382 calls for advice.
10

Annual Report 2013

Social Contribution Activities
In fiscal 2012, we started offering subsidies to organizations engaged in the activities specified below as
a new initiative to contribute to society. Each eligible organization was provided with a subsidy in theamount of around 300,000 to 1 million yen, with the total amount to be paid out in fiscal 2012 set at 25
million yen.

To be eligible, organizations must be engaged in one of the following activities,
each of which is based on the values shared by JCIF
1.

Activities aimed at protecting people’s
livelihoods and helping them resolve
everyday issues

2. Activities aimed at protecting people’s
lives and supporting unique lifestyles

3. Activities aimed at supporting the livesof women and children

Environmental Activities
JCIF took out the certification of ISO14001 in 2010. We build theenvironmental management by contriving ways to extract the factor
of effect to the environment.

Topics of FY2012
We approved to the gist to the turning off of lightcampaign which the environmental ministry lectures,executel its project on June 27th and December 5th, 2012.
We did the light down of our office at 19:15. We could
control the electrical amount.

Japan CO-OP Insurance Consumers' Co-operative Federation

11

Fiscal 2012 CO･OP Insurance Business Overview
Overview of the financial results of the CO-OP Insurance business is as follows:

End of year policyholders totaled

7,974,180

When broken down by product, Tasukeai policyholders increased 0.4% from the previous year to5,937,255, i.-Plus policyholders increased 7.7% to 1,444,456, Zutto-i. policyholders increased 225.0%
from the previous year to 154,441, CO-OP Fire Insurance policyholders increased 1.4% to 401,809, i.i.
policyholders decreased 76.6% to 534 and CO-OP Insurance “new-i.i.” policyholders decreased 1.6% to35,685.

Insurance in force totaled¥ 11,496 billion

CO-OP Insurance Group has total policies of ¥11,496 billion of direct insurance in force, an increase of
2.5% on the previous year.

¥ 165 billion

Premiums totaled

CO-OP Insurance Group has total premiums of ¥165 billion, an increase of 5.2% on the previous year.

Payments

1,276,322¥ 62,299 million

CO-OP Insurance Group made a total of 1,276,322 payments, an increase of 3.1% on the previous year.
CO-OP Insurance Group has made a total of ¥ 62,299 million in payments for insurance claims, an increaseof 1.2% on the previous year.
* Refer to Page 6, about direct and indirect insurance.

Asset Management
Investment Assets

Thousands of
U.S. dollars*2

Millions of yen*1

2013

composition
ratio (%)

2013

¥ 87,798¥ 76,121

35.7%$ 796,661

Negotiable deposit

48,00078,00036.6%

816,326

Public andcorporate bondPublic andcorporatebond

49,50055,20025.9%

577,708

25.9%

255

255

0.1%

2,668

2,343

3,536

1.7%

37,006¥ 187,897¥ 213,113

100.0%$ 2,230,381

Cash

StocksOther securities
Total*1. Yen Amounts are rounded down to the nearest ¥ 1 million.
*2. U.S. dollar amounts are translated, for convenience only, at ¥ 95.55 = US$1.00, the rate
prevailing on March 19, 2013, and rounded down to the nearest $1 thousand.
* Money held in trust are transferable warranty deposits.
* A portion of foreign securities in foreign currencies are hedged.
* Other securities are consist of investment trusts in which volatilities are suppressed.

12

Stocks2012

As of March 20,

Annual Report 2013

0.1%

Other
securities

1.7%

Cash

35.7%

Negotiable
deposit36.6%

Sectral CO-OP Insurance Business Overview
CO･OP Insurance Tasukeai

CO･OP Insurance i.-Plus

2009

5,597,422

2009

2010

5,676,134

2010

2011

5,784,814

2011

2012

5,911,867

2012

2013

5,937,255

2013

850,502
1,018,745
1,198,788
1,340,777
1,444,456

As of March 20,

2012

2013

As of March 20,

2012

2013

Number of Policies

5,911,867

5,937,255

Number of Policies

1,340,777

1,444,456

Premium Income（¥millions)¥113,261¥114,415

Premium Income（¥millions)¥43,274¥45,868

Claims Paid（¥millions)¥48,591¥47,824

Claims Paid（¥millions)¥12,944¥14,006

As of March 20,

2012

2013

Number of Policies

47,488

154,441

Premium Income（¥millions)¥1,218¥5,707¥28¥467

CO･OP Insurance Zutto-i.

2012

47,488
154,4412013

Claims Paid（¥millions)

CO･OP Insurance i.i.

CO･OP Fire Insurance
2009372,371

2009

2010

382,262

2010

2011

390,287

2011

2012

396,306

2012

2,284

2013

401,8092013

534

34,20922,243
11,306

As of March 20,

2012

2013

As of March 20,

2012

Number of Policies

396,306

401,809

Number of Policies

2,284

2013
534

Premium Income（¥millions)¥4,697¥4,730Premium Income（¥millions)

¥633

¥90

Claims Paid（¥millions)¥1,090¥870

Claims Paid（¥millions)¥5,038¥774

As of March 20,

2012

2013

Number of Policies

36,25535,685Premium Income（¥millions)¥5,003¥5,221¥531¥702

CO･OP Insurance New i.i.
2009
2010
2011

15,241
23,79330,7102012

36,255

2013

35,685

Claims Paid（¥millions)Japan CO-OP Insurance Consumers' Co-operative Federation

13

Balance Sheet
As of March 20,

Thousands of
U.S. dollars*2

Millions of yen*1

Assets

2012

2013

2013

Cash and time deposits¥ 86,677¥ 75,313$ 788,205

Money trust

13,103

10,568110,601

Securities

88,116

127,232

1,331,575

Loans

14

7

73

Reinsurance account

118

134

1,402

6,057

6,159

64,458Contract account

433

421

4,406

Other mutual insurance assets

171

139

1,454

Advance payments

18

10

104

Outstanding earnings

204

219

2,291

Other assets

1,301

1,530

16,012

Fixed assets for business use

19,294

16,535173,050

Investment in affiliates etc.

227

227

2,375

9,680

10,913

114,212

−−

−−

−−

¥ 225,420¥ 249,412$ 2,610,277¥ 131,428¥ 144,977$ 1,517,289

163

160

1,674

3,959

4,022

42,093

426

438

4,583

7

6

62

Outstanding outlays

1,376

1,692

17,708

Other

5,274

7,233

75,698

Allowance

651

724

7,577

Price fluctuation reserves

884

1,005

10,518¥ 144,173¥ 160,261$ 1,677,247¥ 80,567¥ 88,274$ 923,851

680

876

9,167

Total Net Assets¥ 81,247¥ 89,151$ 933,029

Total Liabilities and Net Assets¥ 225,420¥ 249,412$ 2,610,277

Subcontracting accountDeferred tax assets
Deferred assets
Total Assets

Liabilities
Policy reserves
Reinsurance account
Subcontracting accountContract account
Other insurance liabilities

Total Liabilities

Net Assets
Membership capital
Others

*1. Yen amounts are rounded down to the nearest ¥ 1 million.
*2. U.S. doller amounts are converted, for convenience only, at ¥ 95.55 = US$1.00, the rate prevailing on March 19, 2013, and rounded
down to the nearest $1 thousand.

14

Annual Report 2013

Income Statement
For the years ended March 20,

Thousands of
U.S. dollars*2

Millions of yen*1

Ordinary Income:

2012

2013

2013

¥ 154,064¥ 162,888$ 1,704,740

23,49927,424

287,012

784

736

7,702

Other ordinary income

5,206

260

2,721

Total Ordinary Income¥ 183,554¥ 191,310$ 2,002,197¥ 85,008¥ 90,176$ 943,757

8,522

10,607

111,009

Investment expenses

156

26

272

Operating expenses

44,37647,027492,171

Other ordinary expenses

491

72

753

Total Ordinary Expenses¥ 138,555¥ 147,909$ 1,547,974

Ordinary Surplus¥ 44,998¥ 43,400$ 454,212

Extraordinary Income

¥ 594

−−

−−

Extraordinary Loss

2,258

271

$ 2,836

Surplus before taxes¥ 43,334¥ 43,129$ 451,376

4,193

5,617

58,785261-1,313-13,741

Transfer to resreve for claim rebate

30,38530,362

317,760

Net surplus

8,494

8,463

88,571

Net surplus for the period

374

439

4,594

Reversal of reserve for start-up business

162

−−

−−

Reversal of reserve for business
continuity planning

−−

274

−−

1,870

104

1,088

¥ 10,901¥ 9,282$ 97,142

Premium and other income
Reversal of allowance for reserve of
insurance policy
Investment income

Ordinary Expenses:
Claims paid
Provisions for policy reserves

Extraordinary Profit and Loss:

Corporate and other taxes
Adjustment of corporate and other taxes

Reversal of reserve for catastrophe solatium
Unappropriated surplus for the period*1. Yen amounts are rounded down to the nearest ¥ 1 million.
*2. U.S. doller amounts are converted, for convenience only, at ¥ 95.55 = US$1.00, the rate prevailing on March 19, 2013, and rounded
down to the nearest $1 thousand.

Japan CO-OP Insurance Consumers' Co-operative Federation

15

Solvency Margin Ratio and Others
Solvency Margin Ratio *3(As of March 20)
Total solvency margin *4 ①

2012

2013

2013

¥ 122,518¥ 137,798$ 1,442,155

22,79523,310243,956

1075.0%1182.3%1182.3%

Total risks ②
Solvency Margin Ratio = ① ÷ (②×1/2)×100

Thousands of
U.S. dollars*2

Millions of yen*1*1. Yen Amounts are rounded down to the nearest ¥ 1 million.
*2. U.S. dollar amounts are converted, for convenience only, at ¥ 95.55 = US$1.00, the rate prevailing on March 19, 2013, and rounded
down to the nearest $1 thousand.
*3. The solvency margin rate of JCIF is calculated based on the Ordinance for Enforcement of Co-op law as determined by the Ministry of
Health, Labour and Welfare.
Therefore, it is incommensurable with the solvency margin rate of life insurance companies and nonlife insurance companies.
According to the Ministry of Health, Labour and Welfare, the rate needs more than 200%.
*4. The total solvency margin is limited to what can be divided in the CO-OP Insurance enterprise.

Breakdown of Basic Profit

Thousands of
U.S. dollars*2

Millions of yen*1(As of March 20)

2012

2013

2013

Basic profit *4¥ 48,105¥ 47,178$ 493,751

Investment profit *3

233

188

1,967

Moratality profit *3

46,91046,163

483,129

Expense profit *3

961

826

8,644

*1. Yen Amounts are rounded down to the nearest ¥ 1 million.
*2. U.S. dollar amounts are converted, for convenience only, at ¥ 95.55 = US$1.00, the rate prevailing on March 19, 2013, and rounded
down to the nearest $1 thousand.
*3. Definitions are as follows:
Investment profit : Differential between the projected investment return (expected yield) and the actual investment return.
Mortality profit : Differential between the projected insurance payment (expected mortality rate) and actual claims for payment.
Expense profit : Differential between the projected operational expenses (projected operational expense ratio) and actual operationa expenses.
*4. Basic profit is calculated by excluding capital gain / loss, such as sales gain or loss on marketable securities, and extraordinary gain / loss,
such as provision for contingency reserves, from recurring surplus. It is the index that shows the basic period income generated from themutual aid enterprise.

Equity Capital Ratio

Thousands of
U.S. dollars*2

Millions of yen*1(As of March 20)

2012

2013

2013

① Equity capital¥ 81,247¥ 89,151$ 933,029

24,20328,098294,065

105,451

117,249

1,227,095¥ 225,420¥ 249,412$ 2,610,277

36.0%

35.7%

35.7%

46.8%

47.0%

47.0%

② Contingency reserves
Revised equity capital 〔 = ① + ② 〕③ Total assets
Equity capital ratio *3 〔 = ① / ③ 〕
Revised Equity Capital Ratio *4*1. Yen Amounts are rounded down to the nearest ¥ 1 million.

*2. U.S. dollar amounts are converted, for convenience only, at ¥ 95.55 = US$1.00, the rate prevailing on March 19, 2013, and rounded
down to the nearest $1 thousand.
*3. Equity capital ratio = Equity capital ÷ Total assets*4. Revised equity capital ratio = Revise equity capital ÷ Total assets

16

Annual Report 2013

Profile of JCIF
Name
JCIF
(Japan CO-OP Insurance Consumers' Co-operative Federation)

Head office
1-5-2 Irifune, Urayasu, Chiba 279-8588 Japan

Established
November 5th, 2008

Number of Member Co-ops
154 ( as of March 20th, 2013 )Detail of operations
CO-OP Insurance BusinessJapan CO-OP Insurance Consumers'
Co-operative Federation
1-5-2 Irifune Urayasu Chiba 279-8588 JAPAN
TEL:+81-47-351-3356
FAX:+81-47-351-5298
http://coopkyosai.coop