Annual Report

2023
Year Ended March 31, 2023

Asahi Mutual Life Insurance Company

Table of Contents

1. Message from the President …………………………………………………………………………………………………………… 2
2. Mid-term Management Plan “Advance: The road to 2030” ………………………………………………………………………… 8
3. Business Overview ……………………………………………………………………………………………………………………… 9
4. Business Overview for Fiscal Year 2022 ………………………………………………………………………………………………10
Business Performance ……………………………………………………………10
Financial Performance ……………………………………………………………12
Financial Soundness ……………………………………………………………12
Results of Operations ……………………………………………………………14
Assets, Liabilities and Net Assets ………………………………………………15
Non-Financial Highlights…………………………………………………………16
5. Investments ………………………………………………………………………………………………………………………………18
Investments (General Account) …………………………………………………18
Responsible Investment Initiatives ……………………………………………19
6. Multiple Channel System ………………………………………………………………………………………………………………21
Overview of the Sales Representative Channel ………………………………21
Overview of Other Channels ……………………………………………………21
7. Addressing the Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) ………………………22
Governance ………………………………………………………………………22
Strategy ……………………………………………………………………………22
Risk Management…………………………………………………………………23
Metrics and Targets ………………………………………………………………24
8. Governance Structure ……………………………………………………………………………………………………………………25
Corporate Governance …………………………………………………………25
Board of Representative Policyholders …………………………………………26
Promoting Compliance …………………………………………………………26
Protecting Customer Information ………………………………………………27
Risk Management Structure ……………………………………………………27
Ofﬁcers (as of July 4, 2023) ………………………………………………………28
9. Consolidated Financial Statements ……………………………………………………………………………………………………29
10. Non-consolidated Financial Statements ……………………………………………………………………………………………61
11. Company Overview (as of March 31, 2023) …………………………………………………………………………………………92

1

1. Message from the President

In this era of the 100-year lifespan, we aim to be
a company that contributes to resolving social
issues and continues to support customers’ lives
through the life insurance business

Introduction
Thank you for supporting Asahi Life.
Since our founding in 1888, Asahi Life has grownalongside the growth and development of the Japanese economy with the warm support of our manycustomers. It is thanks to you that we welcomed our135th anniversary in March 2023. We are deeply
grateful for all of your support over these many years.
The life insurance industry plays an important rolein supporting Japanese society in cooperation withthe social security system, and we believe that thecompany’s business operations themselves are deeply
important and constitute a social responsibility. Basedon these beliefs, Asahi Life holds a basic management philosophy of “SincereService” that is guided
by the idea that fulfilling our responsibilities to ourcustomers, society, and our employees is fundamental
to our business.
Additionally, on the basis of the following priorities, Asahi Life engages in sustainable management
mindful of the sustainability of society itself.

2

Asahi Mutual Life Insurance Company Annual Report 2023

“Engaging in business that prioritizes the improvement of customer satisfaction”“Co-existence with society through continued
engagement to create a prosperous society”“Improvement of employee satisfaction throughthe creation of a comfortable workplace that fosters
employees”
Through above initiatives and appropriate cooperation with various stakeholders, Asahi Life aims tocontribute to the achievement of a sustainable society.

Financial Results for the Fiscal Year
Ended March 31, 2023 (FY 2022)
Looking back at the financial results for the year
ended March 31, 2023, in terms of insurance performance, sales were strong in the medical insurance
business in the sales representative channel of Asahi
Life, and sales of the new products of life insurance
subsidiary Nanairo Life insurance Co., Ltd weresuccessful. As a result, despite the challenges posed by1. Message from the President

the COVID-19 pandemic, annualized premiums fromnew policies for protection-type products at Asahi
Life Group beat the previous year, reaching 126.2%
year-on-year.
Meanwhile, regarding the earnings and financial
soundness of Asahi Life, fundamental profit fell to
13.3 billion yen, below the previous year, mainly due
to the increase in deemed hospitalization benefits
related to COVID-19 and the rise in foreign exchange
hedging costs*1. Although the solvency margin ratio(metric for solvency with respect to claims and benefits) decreased by 21.9 points to 933.0%, compared tothe end of the previous fiscal year, due to a decreasein unrealized gains on securities following the risein overseas interest rates and others, it still exceeds
200% the level insurance companies are required tomaintain.
*1 Hedging costs for avoiding foreign exchange rate risk

Mid-term Management Plan
“Advance: The road to 2030”
We expect big, rapid-acting changes to affect thebusiness environment in the years ahead as Japan’s
super-aged society takes root, society undergoes rapid
digitalization, and initiatives are put into action toachieve a sustainable society.
In order to address these sorts of changes,
the mid-term management plan launched in FY
2021(ended March 31, 2022) focuses on three strategies: the “Third-sector (Products/Services) Strategy,”
the “Channel Strategy,” and the “Investment Strategy.”
In addition, there are two growth drivers to support
these strategies: the “DX*2 Strategy” and the “Human
Resources Strategy.” Through these strategies, wewill work to push forward our initiatives currently
underway and create new areas of growth.
The quantitative metrics identified as strategic
targets in the mid-term management plan are steadily
increasing across the board. Of these, the FY 2023
target for number of new nursing care insurance policies for the Group has already been achieved.
*2 Digital transformation. This refers to the utilization ofdigital technology and data to provide new products andservices, create value for customers, and gain a competitive
advantage.

Three Strategies in the Mid-termManagement Plan
Third-sector (Products/Services) Strategy
u Focus on Medical Insurance and Nursing
Care Insurance
We pursued product development contributing
to pioneering in the third-sector insurance market,
especially the medical/lifestyle disease and nursing
care/cognitive impairment sectors in which we excel.
In April 2022, we launched our “Twin Stage,” a term
insurance product covering death or nursing careof business owners that provides comprehensive
coverage for risks such as the death or caregiving
needs of business owners that could hinder business
continuity.
In October 2022, we launched “Ryoyo-Support”
which provides protection for a reduction in income
suffered during the recuperation period before andafter discharge from the hospital, and an increase in
medical expenses with lump-sum payment.
In the nursing care insurance sector, an area weparticularly focus on, our unique coverage featuresand extensive product offerings were highly recognized, and our nursing care and cognitive impairment
insurance each received the overall 1st place award
in the 2023 Oricon Customer Satisfaction® Survey- Rankings of Nursing Care Insurance Products/
Cognitive Impairment Insurance Products Selectedby Financial Planners.
We will continue focusing on the third-sector
insurance market, especially the medical/lifestyledisease and nursing care/cognitive impairment sectors
in which we excel. Above all, in the nursing care insurance sector, we will exert our market presence as “thego-to company for nursing care insurance.”u Providing New Value in the Healthcare
SectorIn order to better fulfill our role complementing
the social security system to tackle social issues suchas promoting good health and prolonging the healthy
lifespan, we are collaborating with the University ofTokyo to engage in joint research with the aim ofcomplementing the social security system through thedevelopment of new products and services.
Additionally, we launched a new information
service in the healthcare field in October 2022 with3

1. Message from the President

our new customer app called “Asahi My App”, incorporating content that facilitates health checks, nursing
care, and prevention of cognitive impairment. By
continuing to expand our services for the preventionof nursing care and cognitive impairment throughearly prevention and detection, and providing newservices for the prevention of lifestyle diseases, we will
perform a complementary role to the social security
system for Japan’s super-aged society.

Channel Strategy
u Building a Strong Sales Representative
Structure
Regarding our primary channel, the sales representative channel, we have continued to strengthen ourconsulting activities while implementing COVID-19
countermeasures. In response to increasingly diverse
customer needs, we have enhanced our sales activities
by utilizing digital tools such as online applications
and online meetings, as well as by enabling sales
representatives to provide information non-face-toface through a dedicated app.
Furthermore, we have promoted the effective
utilization of human resources at each sales office andinitiatives for the training of new personnel.
Moving forward, we will continue to push our sales
activities forward by incorporating digital technology
into our primary sales channel of sales representatives,
i.e., our forte of “face-to-face consultation that only
humans can offer.”u Promotion of a Shift to Multiple Channels
In our independent agency channels for individual
customers, our subsidiary Nanairo Life InsuranceCo., Ltd. launched new medical and cancer insurance
products in May 2022, aiming to enhance the competitiveness of our product offerings. We will continue
to strengthen product development capabilities andchannel sophistication to further expand market
share.
In our independent agency channels for the corporate market, primarily tax accountant agencies, Asahi
Life worked to grow the number of active agencies weserve by bolstering training provided to staff responsible for such agencies and other such follow-up
systems. Moving forward, we will strive to expand ourmarket share, focusing on our forte of products related

4

Asahi Mutual Life Insurance Company Annual Report 2023

to coverage for temporary leave from work.
We also worked to set up internet marketing anddigital channels by which to provide products toaddress rapidly growing needs for digital solutions.
Regarding digital channels on the internet, we will
strive to expand our business through strengthening
interactions with customers and streamlining procedures to enhance efficiency.
u Expansion of Overseas BusinessAsahi Life partnered with a Vietnamese insurancecompany in 2017 to provide our expertise on telemarketing for medical insurance and other products,
in addition to providing a consulting services withan online business model. In FY 2022, we engaged
in collaborations with new web marketing partners.
Additionally, to further expand our business inVietnam, we established a local subsidiary in Ho Chi
Minh City in March 2023.
Moving forward, we will focus on expanding our
insurance business in Vietnam by strengthening
relationships with existing partners and exploringnew partners through our local subsidiary Asahi Life
Consulting Vietnam.

Investment Strategy
In FY 2022, considering the persistent high costof foreign currency hedging and the rise in domestic
interest rates, Asahi Life made efforts to secure income
by shifting funds from foreign currency-denominatedbonds to yen-denominated bonds and allocating
funds to credit investments*3 that are efficient in termsof risk-return.
Moreover, as a responsible institutional investor and
PRI*4 signatory, we are promoting good stewardship*5
and continuing to pursue investment that incorporates
ESG (environmental, social, and governance) factors.
Additionally, based on an agreement that Asahi
Life and our subsidiary Asahi Life Asset Management
have with French investment giant Natixis Investment
Managers S.A., we pursued closer cooperation on
businesses development and worked to create newinvestment opportunities.
Looking ahead, in anticipation of the introductionof economic value-based regulations*6 in 2025, we willcontinue the transition to an economic value-based
portfolio. Considering the increased uncertainty in1. Message from the President

the global economy due to the impact of global monetary tightening and other factors, we will aim to securesustained returns on investments by diversifying
investment assets to mitigate risks and secure profits.
Furthermore, as a responsible institutional investor,
we will also strive to contribute to the resolution ofenvironmental issues and other global social problems
and thereby reduce investment risk and secure newincome opportunities.
*3 A way of generating revenue by investing in corporate
bonds, loans, and similar products.
*4 The Principles for Responsible Investment (PRI) are behavioral
principles advocated by the United Nations that request
institutional investors to incorporate ESG (environmental,social, and governance) issues into the decision-making
process in the interest of achieving a sustainable society.
*5 Activities in which institutional investors engage inconstructive, “purposeful dialogue” (engagement) that
includes sustainability-related factors in order to improvethe corporate value of the investee companies and promotesustainable growth, thereby growing medium- to long-term
investment returns.
*6 In the solvency assessment of insurance companies, thecurrent accounting basis evaluates only assets at fair value,
whereas under the new regulations, assets, liabilities, andthe difference between them (net assets) are evaluated onan economic value (fair value) basis.

Growth Drivers Underlying Three
Strategies
DX Strategy
We engaged in three reforms to sales channels,
products and services, and business operations toimprove the customer experience.
Specifically, we introduced “incoming call authentication*7” for new registrations on the web-enabled“Asahi My Page” in July 2022, digitizing the identity
verification process and thereby enabling simplified
registration and immediate use. Furthermore, we
made it possible for customers to self-process simple
benefit claims, aiming to improve customer convenience.
In October 2022, we also launched the new “Asahi
My App” for customers.
As part of the transformation of the system infrastructure to drive these initiatives, we are developing anext-generation platform utilizing cloud services.
Additionally, anticipating future business entry into
the expanding metaverse*8 market, we have initiatedefforts to set up storefronts on external platforms,
with the aim of accumulating technological researchand knowledge for potential business entry.

51. Message from the President

To meet the increasingly diverse customer needs
driven by the evolution of digital technology, we willcontinue to promote DX efforts, providing new added
value to our customers.
*7 Authentication method conducted through incoming callsfrom customer-registered phone numbers to verify theindividual's identity.
*8 Virtual spaces on the internet.

6*9 Executives, department heads, division heads, section
managers, branch managers, branch line managers, sales
office managers, etc.
*10 An indicator representing the sense of achievement andvoluntary motivation towards contributing to the organization
or job.
*11 To support the growth of our employees, we utilize amanagement support cloud system and regularly provide an
opportunity for one-on-one discussions between supervisorsand employees.

Human Resources Strategy

Contributions to SDGs Achievement

In order to achieve sustainable growth based on thecore concept of “supporting the challenge of the diverse
human resources who are building the future of Asahi
Life,” we are focused on the three major themes of“developing human resources who are committed toalways striving,” “restructuring our human resources
portfolio,” and “entrenching work style reforms” byhaving each and every staff member follow three
behavioral guidelines: “Challenging yourself,” “Careerself-reliance,” and “Improve productivity.”
For the initiative of “developing human resources
who are committed to always striving,” we expanded
specialized courses for personnel in the investment andoverseas departments, enhanced senior management*9
programs for the female workforce, and increased
external opportunities for personnel interactions toboost motivation among junior, mid-level, and senior
employees.
Additionally, under the initiative of “restructuring
our human resources portfolio,” we diversified ourrecruitment methods, including mid-career hires, andstrategically allocated personnel to areas supporting
our growth strategy.
Furthermore, as part of “entrenching work stylereforms,” we adopted online communication tools
company-wide to facilitate smooth and speedy operations. Moreover, to improve engagement*10 (senseof achievement and contribution), we implemented“1-on-1 Meetings*11” across the entire organization.
While continuing to promote measures under thesethree major themes, we will advance initiatives basedon human capital development policies and otherpolicies to maximize the value of human capital. We
will also work towards further enhancing the value ofthe entire Asahi Life Group through initiatives such as
promoting personnel interactions.

Efforts to tackle the Sustainable Development
Goals (SDGs), adopted by the United Nations as
global goals to be achieved by 2030, are picking up
steam in Japan. At Asahi Life, our mid-term management plan launched in FY 2021 “Advance: The roadto 2030” lays out the following vision for what wewant the company to become by 2030: “In this era of
the 100-year lifespan, we aim to be a company that
contributes to resolving social issues and continues
to support customers’ lives through the life insurance
business.” We work towards the achievement of theSDGs and provide value towards the goal of achievinga sustainable society.
Specifically, in the life insurance business, we
provide nursing care and medical insurance products and services towards the goal of addressing the
problems of a healthy and long-lived society. In ourinvestment, as well, we take into account ESG (environment, social, and governance) factors with the aimof resolving global social issues.
As measures tackling climate change, one of ourpriorities for sustainable management, we are aiming
to reduce greenhouse gas emissions to “net zero” levels
by FY 2050 and have established interim reduction
targets for FY 2030, actively engaging the entire organization in initiatives to reduce emissions.
Additionally, we also worked on CSR (Corporate
Social Responsibility) activities for local healthcare
and welfare, diversity promotion, work style reforms,
health and productivity management, and humanrights promotion.
Moreover, through the Sustainable Management
Promotion Committee headed by Asahi Life’s
company president we are promoting efforts toaddress important sustainability-related issues,
including addressing the proposals of the Task Force

Asahi Mutual Life Insurance Company Annual Report 2023

1. Message from the President

on Climate-related Financial Disclosures (TCFD)*12,
and discussions on these matters are also being deepened at the Board of Directors.
*12 Recommendationsforclimate-related
information
disclosures by companies and institutions and proposals fora basic framework underlying such disclosures.

COVID-19 Countermeasures
Our deepest sympathies go out to all of thoseaffected by COVID-19.
Prioritizing the health and safety of both ourcustomers and staff, Asahi Life has implemented
thorough infection prevention measures, and has
been conducting sales activities, including visits, upon
confirming the preferences of customers.
For customer service operations, the increase inmorbidity claims aligned with the rise in cases of
COVID-19, and we responded by enhancing our
payment processing system through additional
staffing, ensuring prompt payments. We also implemented measures considering the convenience ofcustomers, such as partial omission of some documentation pertaining to the payment of claims andbenefits for those who are unable to provide required
documentation due to circumstances affecting thecustomer or medical institution.
On May 8, 2023, the classification of COVID-19
under the Act on the Prevention of Infectious Diseases

and Medical Care for Patients with Infectious Diseases
was changed to “Class 5 Infectious Disease (equivalent
to seasonal influenza).” Consequently, “deemed hospitalization” has been discontinued for cases after May 8,2023, as they are no longer eligible for hospitalization
measures and recommendations.

Conclusion
FY 2023 marks the final year of the mid-term
management plan. Asahi Life will always think andact from the perspective and point-of-view of ourcustomers on the basis of our basic management
philosophy of “Sincere Service,” moving forward, as
in the past, we will continue to tackle challenges andgrow as we “aim to be a company that contributes
to resolving social issues and continues to support
customers’ lives through the life insurance businessin this era of the 100-year lifespan.” We look forward
to your continued warm support and patronage in the
future.

Hiroki Kimura

President andRepresentative Director72. Mid-term Management Plan
“Advance: The road to 2030”
Asahi Life has established a three-year mid-term management plan for FY 2021 through FY 2023: “Advance:
The road to 2030.”
The achievement of a sustainable society is required on the path to 2030. Asahi Life will contribute to theachievement of such a society through our life insurance business and investment activities based on the belief
that Asahi Lifeʼs business operations themselves are deeply important and constitute a social responsibility.
Above all, as peopleʼs medical expenses and the burden of nursing care become serious social problems inJapanʼs super-aged society, we will support the efforts of our customers to help themselves in this era of the
100-year lifespan. Further, we will contribute to addressing the problems facing a society of good health andlongevity by providing the medical and nursing care insurance products and services that are Asahi Life's forte,in addition to providing value in the healthcare sector, such as for the prevention of the worsening of diseases.

CorporatevisionAsahi Life’s
Vision for2030

Supporting each and every individual life

Asahi Life: a company that contributes to resolving social issues and continues to support customers’ “life”
through the life insurance business in this era of the 100-year lifespanSustainability Management

Initiatives of the
Mid-term Management PlanThree years to create growth trajectory towards 2030
Third-sector Strategy

Channel Strategy

Investment Strategy

Providing value by leveraging
the Company's strength

Developing our sales representative
channelEstablishing multi-channel structure
Creating group synergy

Transitioning to an economic
value-based portfolio
Securing investment income
Promoting ESG investment

Nursing care
Branding

DX Strategy
Growthdrivers

Creating new value-added and a new business model

Human Resource Strategy

Supporting human resource diversity who endeavors to shape the future

Customer-oriented business operations, enhancing compliance,business management sophistication and enhanced governanceInsurance Group Strategy

Advanced Enterprise Risk Management (ERM) Structure■Progress Towards Strategic Targets
Status at the end of
FY 2022Year-over-year

FY 2023 targets

Number of customers (Group*1)

2.775 million+134 thousand

2.80 million

New policies for protection-type products*2(Annualized prmiums, Group*1)¥33.7 billion

126.2 %

¥35.0 billion

Number of new nursing care insurance policies(Group*1)
Policies in force for protection-type products*2(Annualized prmiums, Group*1)

111 thousand¥320.3 billion

95.1 %+ ¥10.4 billion

117 thousand¥330.0 billion*1 “Group” here refers to the total of Asahi Life and Nanairo Life.
*2 Protection-type products include death protection insurance and third-sector insurance products such as medical insurance, nursing careinsurance, and non-participating group medical insurance sold through agency channels but exclude savings-type insurance products.

8

Asahi Mutual Life Insurance Company Annual Report 2023

3. Business Overview
Overview
Asahi Life was established in 1888 as the second
modern life insurance company in Japan under thename Teikoku Life Insurance Company (Teikoku
Seimei Hoken Kabushiki Gaisha). We became amutual company and changed our name to Asahi
Mutual Life Insurance Company (Asahi Seimei
Hoken Sogo Gaisha) in 1947.
Our core business is life insurance for individuals
in Japan, with a specific strategic focus on offering
protection-type products, including medical andnursing care products.
We have been enhancing our financial
soundness and aim to further enhance it throughthe accumulation of surplus and recapitalization
measures. As of March 31, 2023, we had a nonconsolidated solvency margin ratio of 933.0 percent,and insurer financial strength ratings of A- (Stable
Outlook) from Fitch, A- (Stable Outlook) from R&I,
and A- (Stable Outlook) from JCR.

Products
Asahi Life offers a variety of individual life
insurance products, with a focus on protectiontype products including medical and nursing careproducts, aimed at serving our customersʼ financial
needs. We continually review, update, and expand
our product offerings to respond to the needs of ourcustomers while maintaining our focus on individuallife insurance.
Our main products for individual customers are
flexible life insurance products named “Hokenou
Plus” targeting male customers, and “Yasashisa Plus”
targeting female customers. Each product allows
customers to choose from a portfolio of insurance
products to create a customized insurance plan.

Insurance Group Strategy
In order to precisely respond to customersʼ
diversifying needs, Asahi Life will partner with Group
companies to implement agile product development
as well as a “multi-channel” strategy that features

expanded independent agency channels, such as
insurance shops and telemarketing, in addition to
our sales representative channel.

■ Asahi Mutual Life Insurance Company ―――――――――――――――――――――――――――――
Our roughly 14,000 sales representatives throughout Japan provide face-toface service for customers. They provide thorough consultation services during theapplication process and provide extensive follow-up service to address the needsof each individual customer, such as information suited to changes in customersʼ life
cycles.
■ Nanairo Life Insurance Co., Ltd. ――――――――――――――――――――――――――――――――
Established in April 2021, Nanairo Life began selling life insurance in October
2021. Primarily working through channels such as independent agencies and direct
marketing, Nanairo Life provides third-sector products such as medical insurance toaccurately and flexibly serve customersʼ diversifying needs.
■ NHS Insurance Group Inc. ―――――――――――――――――――――――――――――――――――NHS Insurance Group is a holding company for four insurance agencies: NHS Inc.,
Sokisha Inc., FEA Inc. and Life Navi Partners Inc. In telemarketing and door-to-doorsales, they select and suggest the insurance product that best suits the needs of eachindividual customer from a range of products offered by various insurance companies.
■ F.L.P Co., Ltd. ――――――――――――――――――――――――――――――――――――――――
F.L.P is an independent agency that runs a chain of over twenty insurance shops
in the Tokyo Metropolitan Area under the brand Insurance Consultation Salon FLP.
F.L.P selects and suggests the insurance product that best suits the needs of eachindividual customer from a range of products offered by various insurance companies.

94. Business Overview for Fiscal Year 2022
Business Performance (Annualized Premiums, Group*1)
l New Policies for Individual Insurance/Individual Annuities
Annualized premiums from new policies for the Group reached 126.4% of the previous fiscal year.
Of these, third-sector products reached 130.5% of the previous fiscal year.
(Billions of Yen)
Years ended March 31
New Policies (Group)

2022

2023

Year-over-year

27.0

34.1

126.4%

Asahi Life

23.2

20.2

–

Nanairo Life

3.8

13.8

–

23.1

30.2

130.5%

Third-sector productsl Surrendered and Lapsed Policies for Individual Insurance/Individual Annuities*2
Annualized premiums from surrendered and lapsed policies for the Group reached 102.3% of the previous
fiscal year.
(Billions of Yen)
Years ended March 31

2022

2023

Year-over-year

Surrendered and lapsed policies (Group)

23.2

23.7

102.3%

Surrender and lapse ratio

4.45%

4.65%

+0.19points

l Policies in Force for Individual Insurance/Individual Annuities
Annualized premiums from policies in force for the Group ended at 99.5% of the end of the previous fiscal
year due primarily to declines in savings-type products.
Of these, third-sector products reached 105.4% of the end of the previous fiscal year.
(Billions of Yen)
As of March 31
Policies in force (Group)2023

Year-over-year

510.9

508.3

99.5%

Asahi Life

507.2

491.7

97.0%

Nanairo Life

3.7

16.5

447.3%

227.7

240.1

105.4%

Third-sector products

10

2022

Asahi Mutual Life Insurance Company Annual Report 2023

4. Business Overview for Fiscal Year 2022l New Policies for Protection-type Products*3
Annualized premiums from new policies for protection-type products, a focus of Asahi Life, reached126.2% of the previous fiscal year for the Group.
(Billions of Yen)
Years ended March 31
New policies (Group)
Asahi Life
Sales representative channel
Nanairo Life

2022

2023

Year-over-year

26.7

33.7

126.2%

22.9

19.9

–

18.9

19.0

100.3%

3.8

13.8

–

l Policies in Force for Protection-type Products*3
Annualized premiums from policies in force for protection-type products gained +¥10.4 billion on the endof the previous fiscal year for the Group, exhibiting an ongoing increasing trend.
(Billions of Yen)
As of March 31
Policies in force (Group)
Asahi Life
Sales representative channel
Nanairo Life

2022

2023

Year-over-year

309.9

320.3

+10.4

306.1

303.7

(2.4)

283.1

283.3

+0.2

3.7

16.5

+12.8

Notes:*1. “Group” here refers to the total of Asahi Life and Nanairo Life.
*2. Surrendered and lapsed policies are measured as cancellations plus expirations and reductions less revivals.
*3. Protection-type products include death protection insurance and third-sector insurance products such as medical insurance, nursing
care insurance, and non-participating group medical insurance sold through agency channels but exclude savings-type insurance
products.

11

4. Business Overview for Fiscal Year 2022

Financial Performance (Non-consolidated)l Fundamental Profit
Due to a decrease in underwriting gains caused by mortality and morbidity claims related to COVID-19,
fundamental profit decreased ¥31.5 billion relative to the previous fiscal year to ¥13.3 billion.
(Billions of Yen)
Years ended March 31

2022

2023

Year-over-year

Fundamental profit

44.9

13.3

(31.5)

Underwriting gains

76.4

54.2

(22.2)

Negative spread amount(31.5)(40.8)(9.3)*Starting from FY 2022, fundamental profit is calculated based on a new definition that includes the calculation of hedging costs
related to foreign exchange. Figures for FY 2021 are also calculated using the same definition.

l Ordinary Profit, Net Surplus
Ordinary profit was ¥17.6 billion, with a net surplus of ¥17.2 billion.
(Billions of Yen)
Years ended March 31

2022

2023

Year-over-year

Ordinary Profit

32.3

17.6

(14.6)Net Surplus

22.9

17.2

(5.6)

Financial Soundness (Non-consolidated)l Solvency Margin Ratio
Solvency margin ratio decreased 21.9 points relative to the end of the previous fiscal year, dropping to933.0%.
As of March 31
Solvency margin ratio

2022
954.9%

2023
933.0%

Year-over-year(21.9points)l Adjusted Net Assets
Adjusted net assets ended at ¥828.4 billion, a decrease of ¥226.0 billion relative to the end of the previous
fiscal year.
(Billions of Yen)
As of March 31
Adjusted net assets

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Asahi Mutual Life Insurance Company Annual Report 2023

2022
1,054.5

2023
828.4

Year-over-year(226.0)4. Business Overview for Fiscal Year 2022

l Net Unrealized Gains/Losses on Securities (general account)
As of March 31
Securities

2022(Billions of Yen)
2023

Year-over-year

385.8

198.8

(187.0)

Domestic stocks

246.3

258.6

+12.2

Domestic bonds

134.2

2.3

(131.9)Foreign securities

1.9(62.5)(64.5)

Other securities

1.3

(1.5)

(2.9)

*The above table excludes interests in investment partnerships and certain investment assets not readily affected by market valuation.

l Capital BaseFoundation funds, which are the counterpartsof paid-in capital for joint stock corporations,serve as the primary source of capital for Japanesemutual companies. Unlike paid-in capital, however,foundation funds have a stated maturity and accrue
interest payment obligations. If the principal amountof the foundation funds is repaid by insurancecompanies out of their net assets, the Insurance
Business Act requires that an amount equivalent to
the repayment be set aside in the net assets portionof the balance sheet as reserve for redemptionof foundation funds. As of March 31, 2023, thebalance of foundation funds was ¥51.0 billion andthe amount of reserve for redemption of foundation
funds was ¥206.0 billion, respectively.
Additionally, we have also worked on strengthening
our financial soundness by accumulating internal
reserves and raising funds in the form of subordinateddebt which, while accounted for as a liability, functions
largely like capital.

13

4. Business Overview for Fiscal Year 2022

Results of Operations (Non-consolidated)l Selected Data of Statements of Income
Years ended March 31
Ordinary income:

2022

2023

Year-over-year

597.9

629.5

105.3%

387.1

379.2

98.0%

366.6

358.8

97.9%

144.9

144.1

99.4%

Interest, dividends and other income

120.5

118.4

98.3%

Gains on sales of securities

11.9

16.1

134.9%

65.7

106.1

161.3%

54.3

95.1

175.2%

565.6

611.8

108.2%

381.4

404.3

106.0%

Claims

107.5

110.7

103.0%

Annuities

116.7

112.4

96.3%

Benefits

72.9

94.5

129.6%

Surrender benefits

79.2

81.7

103.2%

Investment expenses:

36.6

64.8

177.1%

Losses on sales of securities

11.1

25.5

228.4%

Losses on valuation of securities

0.2

0.1

42.0%

Losses on derivative financial instruments

2.5

18.8

749.9%

Operating expenses

110.3

106.0

96.1%

Other ordinary expenses

33.6

33.9

101.0%

Ordinary profit

32.3

17.6

54.6%

Extraordinary gains:

2.9

11.8

406.0%

2.9

1.8

64.6%

–

10.0

–

6.5

6.0

92.5%

Losses on disposal of fixed assets

2.7

2.7

99.5%

Impairment losses

1.1

3.2

286.2%

Provision for reserve for price fluctuation

2.5

–

–

Surplus before income taxes

28.6

23.4

81.8%

Total income taxes

5.7

6.2

108.0%Net surplus

22.9

17.2

75.3%

Premium and other income:Insurance premiums from individual insurance andindividual annuities
Investment income:

Other ordinary income:Reversal of policy reserves
Ordinary expenses:
Claims and other payments:

Gains on disposal of fixed assets
Reversal of reserve for price fluctuation
Extraordinary losses:

Ordinary income was ¥629.5 billion (105.3% of theprevious fiscal year), of which ¥379.2 billion (98.0%)
was premiums and other income. Investment income
decreased to ¥144.1 billion (99.4%) mainly due to adrop in interest, dividends and other income.
Ordinary expenses were ¥611.8 billion (108.2%),
including claims and other payments of ¥404.3 billion(106.0%), driven by an increase in mortality andmorbidity claims related to COVID-19. Investment
expenses were to ¥64.8 billion (177.1%) due primarily

14(Billions of Yen)

Asahi Mutual Life Insurance Company Annual Report 2023

to increased losses on sales of securities andderivative financial instruments. Operating expenses
were ¥106.0 billion (96.1%).
This resulted in an ordinary profit of ¥17.6 billion(54.6%).
Extraordinary gains were ¥11.8 billion (406.0%),
and extraordinary losses were ¥6.0 billion (92.5%).
Total income taxes reached ¥6.2 billion (108.0%).
As a result of the above factors, net surplus was¥17.2 billion (75.3%).

4. Business Overview for Fiscal Year 2022

Assets, Liabilities and Net Assets (Non-consolidated)l Selected Assets Data
As of March 31(Billions of Yen)
2022

2023

5,504.1

5,285.6(218.4)

Cash, deposits and call loans

146.8

207.6

+60.8

Monetary claims bought

22.5

20.2

(2.2)

Total assets:

Securities:

Year-over-year

4,565.8

4,303.7(262.0)

Domestic bonds

2,627.8

2,609.7(18.1)

Domestic stocks

472.5

507.6

+35.0

Foreign securities

1,395.6

1,088.2(307.4)

Loans

311.4

303.9

(7.4)

Tangible fixed assets

368.5

359.4

(9.0)

Others

88.9

90.4

+1.5

(Billions of Yen)l Selected Liabilities/Net Assets Data
As of March 31

2022

2023

5,002.2

4,855.9(146.2)

4,425.7

4,331.5(94.2)

4,365.0

4,269.9(95.1)

Bonds payable

102.4

150.5

+48.1

Others

474.0

373.8

(100.2)

501.9

429.7

(72.1)

374.7

347.4

(27.2)

Foundation funds

91.0

51.0

(40.0)

Reserve for redemption of foundation funds

166.0

206.0

+40.0

0.2

0.2

–

117.4

90.2

(27.2)

0.3

0.3

+0.0

Total liabilities:
Policy reserves and other reserves:
Policy reserves

Total net assets:
Total foundation funds and others:

Reserve for revaluation
Surplus:Reserve for future losses
Other surplus:

Year-over-year

117.0

89.8

(27.2)

Reserve for fund redemption

53.5

22.6

(30.9)

Equalized reserve for dividends to policyholders

6.9

7.0

+0.1

Unappropriated surplus (loss)

56.6

60.1

+3.5

Total valuation and translation adjustments:

127.1

82.2

(44.9)Net unrealized gains (losses) on available-for-salesecurities, net of tax

173.9

130.6

(43.2)

Land revaluation differences(46.7)(48.4)(1.6)

Total liabilities and net assets

5,504.1

5,285.6(218.4)As of March 31, 2023, total assets were ¥5,285.6
billion, with securities accounting for ¥4,303.7 billion,loans at ¥303.9 billion, and tangible fixed assets
at ¥359.4 billion. For securities, foreign securities
decreased due to the reduction of foreign currencydenominated bond balances, considering theincrease in foreign exchange hedging costs mainly
due to the rise in overseas interest rates.
Total liabilities were ¥4,855.9 billion, of which
policy reserves accounted for ¥4,269.9 billion.

Total net assets were ¥429.7 billion, of which
total foundation funds and others amounted to¥347.4 billion, and total valuation and translation
adjustments amounted to ¥82.2 billion. Reserve forredemption of foundation funds increased by ¥40
billion as a result of transferring the same amountfrom reserve for fund redemption to reserve forredemption of foundation funds following theredemption of ¥40 billion of foundation funds prior
to the redemption date.

15

4. Business Overview for Fiscal Year 2022

Non-Financial Highlights
Number of Customers

Asahi Life Group had 2.775 million customers as ofthe end of FY 2022, an increase of 134 thousand fromthe end of the previous fiscal year.

(End of FY 2022, Group)

2.775

millionTotal Payments of Claims, Annuities
and Benefits

Claims, annuities, and benefits payments made in
FY 2022 totaled ¥317.6 billion.

(FY 2022, Non-consolidated)

¥

317.6

billionCustomer Satisfaction

Customer satisfaction reached 76.1%, a decrease of
2.5 points from the previous fiscal year.

(End of FY 2022, Non-consolidated)

76.1

%

Offices(April 1, 2023)

58
566

Asahi Life has 58 branches and 566 sales offices
throughout Japan where sales representatives provide
the right products and services for each and every
customerʼs needs in a face-to-face context.

branchessales offices

Greenhouse Gas Emissions(End of FY 2022, Non-consolidated)■ Life Insurance Business*1

50.9

Scope1 + Scope2:

23.5
27.4

Scope1:
Scope2:
Scope 3 (Categories 1 to 14):57.8

thousand tons - CO2e
thousand tons - CO2e
thousand tons - CO2e
thousand tons - CO2e

■ Investment and Financing Portfolio*2
Scope 3 (Category 15):

16

639.5

Asahi Mutual Life Insurance Company Annual Report 2023

thousand tons - CO2e

As measures tackling climate change, one of ourpriorities for sustainable management, we establishedFY 2030 interim reduction targets for greenhousegas emissions based on the reference year of 2020
(life insurance business: a 50% reduction, investment
portfolio: a 39% reduction), aiming to reducegreenhouse gas emissions to “net zero” levels by FY
2050.
In FY 2021, we made steady progress with a 11%
reduction in the life insurance business. Additionally,
the investment portfolio achieved a reduction of 1%.
*1 Calculated based on the Ministry of the Environment andMinistry of Economy, Trade and Industryʼs “Basic Guidelines
on Accounting for Greenhouse Gas Emissions Throughout theSupply Chain.”*2 The target assets consist of stocks, corporate bonds, and loans ofpublicly listed companies in Japan, and the measured emissions
are Scope 1 + Scope 2 emissions of the companies in whichinvestments were made.

4. Business Overview for Fiscal Year 2022

Number of Employees(End of FY 2022)

Of which

18,60914,4844,125

Of which

are sales representatives
are office staff

Employee Satisfaction

Employee satisfaction (Asahi Engagement Score)reached 72.4%, an improvement of 0.3 points from theprevious fiscal year.

(Asahi Engagement Score)(Surveyed in December 2022)

72.4* An index quantifying satisfaction with seven indicators from theemployee awareness survey conducted at our company.

%
Working on initiatives such as “Female career
independence” and “Support for work-home balance”
since FY 2006, we achieved a female manager ratio of
21.7% as of the beginning of FY 2023.

Ratio of Female Managers(as of the Beginning of FY 2023)

21.7

%

Gender Wage Gap(FY 2022)
Sales representatives
Regular employees

Of which,
non-management positions

Irregular employees
All employees

Office staff

Total

104.9％ 48.6％ 36.4％

Of which,management positions

－
－
－

104.9

88.9
60.9

57.3
47.8

88.9
60.9

57.3
37.6

143

* Based on the Act on Promotion of Women's Active Engagementin Professional Life, female managers include those at the levelof section chief or higher, and those below the level of section
chief whose job responsibilities and level of responsibility areequivalent to that of a section chief.

The gender wage gap among regular employees
is 48.6% for office staff, influenced by past personnel
systems. Meanwhile, because of the personnel
system revision of FY 2021 the gender wage gap for
management positions is 88.9%.
* Management positions refer to employees at the level of section
chief or higher, and also include those below the level of section
chief whose job responsibilities and level of responsibility areequivalent to that of a section chief.

As part of our support for achieving balance
between work and childcare, Asahi Life has worked
to promote understanding of support for this balancesince FY 2015 and strived to create an environmentand corporate culture in which it is easy for employees
to take childcare leave.

Ratio of male employees taking
Childcare Leave(FY 2022)

Asahi Life consists of 18,609 employees, of whom
14,484 are sales representatives and 4,125 are office
staff.

%* Calculated based on the criteria stipulated by the revised Act onChildcare Leave/Caregiver Leave17

5. Investments
Investments (General Account)
In order to properly respond to the mandate
given us by our customers, Asahi Life seeks out
investments that are safe and provide an advantage,and in light of the public nature of the life insurance
business, we conduct investment considering public
and social aspects.

Further, through investment, Asahi Life contributes
to the resolution of environmental issues and otherglobal social problems, in addition to aiming to
reduce investment risk and secure new income
opportunities.

FY 2022 Investment Environment
In FY 2022, the Japanese economy was affectedby the rise in resource prices, among other factors,
but as economic activities were promoted whilemeasures to suppress the COVID-19 pandemic were
implemented, it continued to gradually recover.

Internationally, there was a gradual recovery
in the first half, but in the second half, the paceof recovery slowed down due to the impact ofmonetary tightening and other factors.

FY 2022 Initiatives
In FY 2022, considering the increase in hedging
costs and the rise in domestic interest rates,
Asahi Life shifted funds from foreign currencydenominated bonds to yen-denominated bonds.
Furthermore, we opted for a risk-avoidant strategy
of diversified investments, improving investment
income by actively pursuing credit investments*1
that are efficient in terms of risk-return in preparation

for the introduction of economic value-based
regulations in 2025.
Moreover, as a responsible institutional investorand signatory to the PRI, we are promoting
good stewardship and pursuing investment thatincorporate ESG factors (environment, social, andgovernance).
*1 Investments in corporate bonds, loans, and similar products.

Overview of Investment Performance for FY 2022
In FY 2022, Asahi Life shifted funds from foreign
currency-denominated bonds to yen-denominatedbonds, and actively pursued credit investments thatare efficient in terms of risk-return.
For domestic bonds, in consideration of the risein domestic interest rates, we purchased superlong-term government bonds and assets with credit
spreads such as corporate bonds.
For loans, we allocated funds in project financefor domestic and foreign renewable energy-related
projects.
We partially restructured our domestic stock
portfolio to favor companies with better profitability,

dividends, and other qualities.
For foreign securities, considering the increase inforeign exchange hedge costs, we reduced foreign
currency-denominated bonds. For alternative
investments*2, we focused primarily on funds thatoffer stable returns and are less susceptible toeconomic fluctuations.
We made an effort to improve real estate
profitability by attracting new tenants and othermeasures.
*2 Investments in infra-funds, real estate investment trusts, hedge
funds, etc., which are considered as alternative investments totraditional investment assets such as stocks and bonds.

Future Initiatives
We will shift to an economic value-based portfolio
in preparation for the introduction of economic
value-based regulations in 2025.
With monetary tightening worldwide andincreasing uncertainty about the outlook for the
global economy, we will aim to diversify the rangeof asset classes in which we invest to mitigate
risk and secure profits in pursuit of sustainable18

Asahi Mutual Life Insurance Company Annual Report 2023

investment income.
As a responsible institutional investor, we will
promote good stewardship and pursue ESG(environment, social, and governance) investment
in order to contribute to the resolution ofenvironmental issues and other global social
problems, and to reduce investment risk and secure
new income opportunities.

5. Investments

Responsible Investment Initiatives
In our investment activities, Asahi Life views
investment based on our Basic Policy on ESG
Investment and Basic Policy for Fulfilling StewardshipResponsibilities as “Responsible Investment.”

In particular, we have focused on “climate change”
and “good physical health” as priority themes in ourefforts to resolve social issues as we accelerate ESG
investment initiatives.

ESG Investment Initiatives

Investment that takes
non-financial information
into account(Integration)

We conduct investment that takes into account not
only financial data but also non-financial information(sustainability-related information) of investee companies
in all assets

Dialogue onsustainability-related
issues(Engagement)

We conducted dialogues on sustainability-related issues
with investee companies in not only stock investment but
also bond and loan investment

ESG-themed Investment

We have promoted ESG-themed investment with a focus
on renewable energy project finance and others

Negative Screening

We do not invest in projects to develop coal-fired power
generation facilities, manufacturers of inhumane weapons(including nuclear weapons), and tobacco productmanufacturers

19

5. Investments

Stewardship Initiatives
Asahi Life aims to make stable and efficientinvestment of the assets entrusted in us by ourcustomers in the form of insurance premiums in
preparation for future payments of claims, benefits

and others. We view stewardship activities as
extremely important work in order to improve theeffectiveness of our investment activities in themedium to long term.

Fulfilling stewardship responsibilities toward
customers and financial markets
Reporting on activity status
Stewardship activities“Basic Policy for Fulfilling Stewardship Responsibilities”

Productive
dialogue

Consideration and execution of saleof investment assets

Appropriate
exercising of voting
rights (stocks)

If no expectation of improvements
in corporate value...

Monitoring thestatus of companies
in which we haveinvested“Policy for Exercising Voting Rights”“Guidelines for Exercising Voting Rights”<Improving Corporate Value>
Shareholder returns for stock

Growth of Asahi Life’s investment income

Dialogue - Engagement
Asahi Life views constructive dialogue as a major
pillar underlying our stewardship activities as wellas important initiatives that improve corporate
value and promote sustainable growth of investee
companies.
When engaging in dialogue with the companies
in which we invest, we first select companies on thebasis of analysis and understanding of trends incompany performance, financial condition, content
of their business plans and progress thereof, status
of initiatives on sustainability issues, and corporate
governance structure, then set key issues for eachmatter and begin an exchange of opinions.

■ Primary Stewardship Themes
Bolstering shareholder
returns

Approach to shareholder returns

20

Asahi Mutual Life Insurance Company Annual Report 2023

Bolstering initiatives onsustainability-related issues<Priority Initiative Themes>
Climate change, good physical health
Status of initiatives to resolve or
make improvements to issues

Building corporate
governance systems

Sustainability management
Status of system-building6. Multiple Channel System
Overview of the Sales Representative Channel
As peopleʼs medical and nursing care expenses
become a serious social problem in Japanʼs
superaged society, we will provide the medical andnursing care insurance products and services inwhich Asahi Life specializes, as well as provide value
in the healthcare field, such as that offered throughthe early prevention and detection of diseases forthe prevention of serious illness, aiming to exert ourmarket presence as “the go-to company for nursing
care insurance.”
We will strengthen the training system at eachlocation, expand education and guidance, andenhance face-to-face consulting activities, which are

the strengths of the sales representative channel.
Additionally, in our effort to handle diversifying
demands of our customers, we will improvecustomer convenience through the use of digitaltechnologies and digitalization of various insurance
procedures, and enhance our sales activities by
expanding the functionality of digital tools, web
applications, and other solutions.
These sorts of initiatives will provide a powerful
push forward, and by venturing into new sectors,
we will strongly assert Asahi Lifeʼs presence in themarket, boost customer satisfaction, and aim togrow our customer base.

Overview of Other Channels
Tax Accounting Agencies
We have signed agency agreements with tax
accountants throughout Japan to offer products
for management personnel via consulting services
for corporate clients. We also have personnel

responsible for such tax accounting agencies inplace across the country to bolster our support
infrastructure.

Telemarketing
We sell easy-to-understand third-sector products
such as medical insurance over the phone to themembers of credit card companies.
In addition to training the operators, we also

engage in activities aimed at improving the qualityof calls through regular monitoring and othermeasures.

Direct Sales
In collaboration with advertising management
and other industries, we sell cognitive impairment
insurance and other third-sector products forwhich administrative procedures can be conductedentirely over the internet. We also provide various
forms of training for call center operators to enhancethat support structure and enable them to better
explain the relevant products and procedures.

Overseas BusinessIn 2017, Asahi Life began partnering with a local
Vietnamese insurance company to provide ourexpertise on selling insurance via telemarketing, inaddition to providing consulting services with an
online business model in cities like Ho Chi Minh Cityand Hanoi.
To expand our business in Vietnam, weestablished a local subsidiary, which commenced
operations in April 2023. Moving forward, throughthe local subsidiary, we aim to strengthen existing
businesses through new partnerships, diversify
channels by expanding face-to-face sales channels,
and further expand our business in Vietnam.
Moreover, in order to further expand the businessto other countries, we will continue to study andresearch various markets primarily in Asian countries
that are expected to experience high growth.

21

7. Addressing the Recommendations of the Task Forceon Climate-related Financial Disclosures (TCFD)
Asahi Life endorsed the recommendations of
the TCFD, which was established by the Financial
Stability Board, in June 2019.
With respect to the climate change-relatedthematic areas of “governance,” “strategy,” “riskmanagement,” and “metrics and targets” containedin the TCFDʼs climate recommendations, we will
work to make full disclosures regarding the status ofinitiatives that “contribute to the achievement of asustainable society” from both our primary business,life insurance, and from our investment activities as
an institutional investor.

Governance
Asahi Life has established the Asahi Life
Environmental Policy for the implementation ofclimate change initiatives and other initiatives toprotect the Earthʼs environment. We recognize theinitiatives to protect the Earthʼs environment as animportant issue in sustainability management andin accordance with this policy, each employee isengaged in environmentally conscious actions in allareas of business activities.
In our investment activities, Asahi Life views
investment based on our Basic Policy on ESG

Investment and Basic Policy for Fulfilling StewardshipResponsibilities as “responsible investment” which
includes our initiatives to tackle climate change.
Based on these policies, the Sustainability
Management Promotion Committee, headedby Asahi Lifeʼs company president, is promoting
initiatives related to sustainability, including
environmental initiatives with a focus on climatechange mitigation, in addition to the core businessinitiatives of a life insurance company.

Strategy (Risks/Opportunities)
The risks posed to Asahi Life by climate change
are separated into “physical risks*1” and “transition
risks*2”, or alternatively into “life insurance business”
and “investment” risks.
In order to understand the impact on Asahi Life of
the risks and opportunities accompanying climatechange, we conducted scenario analysis based on
forecasts of environmental change and the impact
thereof.
Scenario analysis of the impact of climate change
on Asahi Life based on 1.5°
C and 4°C average
Global Scenario

Average Temperature in 2100

Scenario in which there is a global transition to a decarbonizedsociety that successfully controls rising temperatures

1.5℃ rise in temperatures compared tobefore the Industrial Revolution

Scenario in which there is not a global transition to a
decarbonized society and temperature increases continue

4℃ rise in temperatures compared tobefore the Industrial Revolution*1 Direct/indirect losses caused by climate change.
*2 Risks arising in the process of curtailing greenhouse gas emissions.

22

temperature increase scenarios leads us to believethat we should focus in the short term on transition
risk, and primarily for investment.
On the other hand, we also recognize that as theaverage temperature increases in the long term, theimpact of “physical risks” will increase to primarily
the life insurance business.
We will examine the impact as determined byscenario analysis as we move ahead with businessactivities in the future and contribute to theachievement of a decarbonized society.

Asahi Mutual Life Insurance Company Annual Report 2023

7. Addressing the Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)

Life Insurance Business
Various studies are being conducted on thehealth impacts of the rise in average temperatures.
In the long term, as there is a potential increase indeaths and hospitalizations due to heatstroke andother causes, considered as a "physical risk," we aretaking measures, such as estimating the increased
amount of death claims due to heatstroke andother causes.
Additionally, there is a possibility of increased
business costs due to the promotion of efforts to
reduce greenhouse gas emissions and strengtheningof regulations, considered as a “transition risk,” andwe will continue to assess these impacts.

Investment
We believe that physical and transition risks
associated with climate change will have an impact
on our investee companiesʼ sustainability, and that
this represents a risk of damaging asset values.
Based on this belief, we will set “climate change”
as a priority theme and accelerate responsible
investment initiatives moving forward.
As part of our responsible investment initiatives,
we engage in investment that considers nonfinancial information across all assets.
Additionally, to achieve net-zero greenhouse gas
emissions by 2050, we have developed a roadmap
up to 2030, based on which we engage in dialogues
with listed investee companies and companies that
we have financed or from which we have purchasedbonds. These dialogues focus on setting and raising
medium- to long-term reduction targets, andformulating specific reduction strategies to support
their climate change initiatives.
Additionally, we subject projects to develop
coal-fired power generation facilities to negative
screening.
Meanwhile, we also view steps to resolve climatechange problems as potential opportunities
to generate revenue by providing us with newinvestment opportunities.
Moving forward, Asahi Life will actively invest inthemed assets such as renewable energy project
finance that contributes to the resolution of climatechange issues.
There is no established quantitative analysis
method for “physical risks” and “transition risks”
associated with climate change, and we areengaging in exploratory investigations and analyses.
Most recently, we have used MSCI's Climate Valueat Risk (CVaR) to investigate and analyze theimpact of policy risks, technological opportunities,
and physical risks in climate change scenarios on
domestic and international equities and bonds.
Moving forward, we aim to enhance ourinitiatives, including quantitative analysis of climatechange risks, consideration of these analyses ininvestment strategies, and the development of ascreening system for investee companies that takes
ESG factors into account.

Risk Management
In order to properly address risks thatare increasingly diverse and complex, we
comprehensively investigate all risks facing Asahi
Life and work to monitor and evaluate them.
Specific risks are not independent but are rather
linked to and affect one another, and for this reason
we have established a framework for comprehensive
overall risk management by which be implement
initiatives.
Climate change risk is considered an importantrisk that will have a broad impact on various
other risks, such as insurance underwriting risk
and investment risk, so we work to understandanticipated risk and the impact thereof as well as
regulatory trends inside and outside of Japan.
These various risks facing Asahi Life are organized
into and evaluated as “risk profiles” and regularly
reported at Management Meetings.
We will continue working towards effective risk
management.

23

7. Addressing the Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)

Metrics and Targets
Asahi Life has set interim greenhouse gas emission reduction targets for FY 2030 and net-zero greenhousegas emissions targets for FY 2050, undertaking the following initiatives in response to climate change and as partof efforts to achieve the goals of the Paris Agreement.

Life Insurance Business• Reducing energy consumption through power-saving measures• Transitioning to renewable energy for owned properties, considering the domestic and international energy
situation.
(Non-consolidated)

Emission results(Units: Thousands of tons - CO2e)
Category
FY 2020

FY 2021

Scope1+Scope2

57.5

50.9

Scope 1

26.8

23.5

Scope 2

30.6

27.4

65.3

57.8

Scope 3 (Categories 1 to 14)

Reduction targets
FY 2030(compared to
FY 2020)

FY 2050−50%

Net zero−50%

Net zero* An overview of these categories is provided below, based on the Ministry of the Environment and Ministry of Economy, Trade andIndustryʼs “Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain.”
Scope 1: Direct GHG emissions by the company itself (combustion of fuels, industrial processes).
Scope 2: Indirect emissions from the use of electricity, heat, or steam supplied by others.
Scope 3: Emissions by others related to the companyʼs activities.

Investment• Prioritizing dialogue (engagement) with investee companies rather than by pulling out of such companies(divestment), and promoting the establishment or addition of emission reduction targets and specificinitiatives at these companies to encourage their efforts against climate change.
• Actively promoting investments in assets with themes contributing to the resolution of climate change issues.
(Non-consolidated)

Emission results(Units: Thousands of tons - CO2e)
Category
FY 2020
Scope 3 (Category 15)

646.3

FY 2021639.5

Reduction targets
FY 2030(compared to
FY 2020)

FY 2050−39%

Net zero* Category 15: Target assets are stocks, corporate bonds, and loans of publicly listed companies in Japan. Measurement is focused on
Scope 1 + Scope 2 emissions of companies in which investments were made.

24

Asahi Mutual Life Insurance Company Annual Report 2023

8. Governance Structure
Corporate Governance
Basic Philosophy on Corporate Governance
Recognizing that the life insurance industry plays
an important role in supporting Japanese society
in cooperation with the social security system,and that our companyʼs business itself constitutes
an important social responsibility, Asahi Life holds
a basic management philosophy of “Sincere
Service.” This is guided by the idea that fulfilling our
responsibilities to our customers, society, and our
employees is fundamental to our business.
Based on our basic management philosophy,
we work to maintain strong cooperation with allof our stakeholders and promote corporate social
responsibility-based management centered on thefollowing:- Engaging in business that prioritizes the
improvement of customer satisfaction;- Co-existence with society through continued
engagement to create a prosperous society,and;- Improvement of employee satisfaction throughthe creation of a comfortable workplace that
fosters employees.
We promote sustainable management that
contributes to the achievement of a sustainable
society and make efforts to achieve effective
corporate governance in order to both maintainour financial soundness and make decisions in atransparent, fair, quick, and decisive manner.

Overview of the Corporate Governance Structure
Asahi Life is a mutual company. A mutualcompany is a corporate structure in which
individual policyholders (excluding holders of nonparticipating policies) may directly participate in the
management. Instead of holding a General Meetingof Policyholders, we have established a Board ofRepresentative Policyholders.
This serves as the highest decision-making bodywhich consists of representatives elected fromamong our policyholders.

Additionally, in accordance with the institutional
design required by the Insurance Business Act, wehave opted to be a company with a Board of Statutory
Auditors. The Board of Directors makes decisions on
basic company management issues and supervises
the execution of the duties of the directors. While
the Statutory Auditors also supervise the executionof the duties of the directors, they do this as anindependent body entrusted by the policyholders.

Management Organization
Policyholders
Board of Representative
Policyholders

Board of Statutory Auditors

Conference with Customers

Board of Trustees
Board of Directors

Statutory Auditors
Nomination andCompensation Committee
Chief of Internal
Audit Department
Executive Officers' Meeting

Chief ActuaryManagement Meeting

Meetings
Committees

25

8. Governance Structure

Board of Representative Policyholders
Framework and Functions of the Board of Representative Policyholders
Asahi Life has adopted a mutual company
corporate structure that is only permitted for insurancecompanies. Under this structure, the company iscomprised of individual insurance policyholders, who
are considered members of the company. Therefore,
the General Meeting of Policyholders serves as thehighest decision-making body at Asahi Life, but since
it is difficult to realistically hold a General Meetingfor all roughly 1.87 million policyholders, we haveestablished a Board of Representative Policyholders
in accordance with the Insurance Business Act to act
on behalf of the General Meeting of Policyholders.
The main issues reported and resolutions madein the Board of Representative Policyholders are as
follows.

Reported issues:
Business reports, balance sheets, statements ofincome, statements of changes in net assets,
operational reports specific to the mutualcompany structure
Resolutions:
Appropriation of surplus, allotment ofdividends to policyholders, changes in articles
of incorporation, appointment of nominating
committee members for representative
policyholders, appointment of trustees,
appointment of directors/statutory auditors, etc.

Promoting Compliance
Asahi Life positions compliance with laws andordinances as one of the most critical issuesof management, needed to conduct sound,transparent and fair business as well as to maintainthe trust of our customers. We work to fostera corporate culture that both promotes andemphasizes compliance.

All employees devote themselves to legallycompliant and appropriate business. We strive
to prevent any illegal or inappropriate practices
and will also endeavor to make respond quickly
and appropriately in the event that any illegal orinappropriate business practices are encountered.

Basic Policy/Compliance with Standards
Asahi Life has established the Basic Policy on
Compliance and Compliance Standards as theprimary guidelines to be observed by all employees.
These are made widely and thoroughly known
among all executives and employees throughour Compliance Manual and rigorous training.
All employees must conduct and are conducting
business strictly in accordance with these policy andstandards.
Furthermore, we have also created theCompliance Program which includes a detailed
action plan. By implementing this action planand conducting reviews on a periodic basis, weare attempting to establish a more advanced
compliance framework.

Organization/System
Asahi Life holds discussions on compliancewith the Compliance Committee. The Committee
is composed of the Company President as chair,as well as Management Meeting members andthird-party lawyers. The Committee discusses

26

Asahi Mutual Life Insurance Company Annual Report 2023

compliance issues with the expert input of thethird-party lawyers. Additionally, the ComplianceControl Department implements specific measurespertaining to compliance.

8. Governance Structure

Protecting Customer Information
Management System to Appropriately Protect Information Assets
Asahi Life maintains customersʼ personal
information related to their policies and health status
insofar that the information is needed for businesspurposes. Therefore, recognizing that keeping
such customer information secure is crucially
important for management, we have establisheda framework to protect customer information,
personal information, and personally identifiable
information. We strictly implement that framework

based on the relevant laws and ordinances.
Furthermore, we have also formulated a Security
Policy to provide appropriate protection for ourcustomersʼ information. All employees perform
appropriate and strict information management
based on this policy to both fulfill our responsibility
towards our policyholders and society, and tofurther improve the credibility of our company.

Risk Management Structure
Overview
The environment surrounding life insurancecompanies is constantly changing. Against such a
backdrop, Asahi Life believes it is very importantto accurately ascertain various risks and manage
them appropriately and strictly. This helps toboost financial health and stabilize profits, which
will eventually lead to increased corporate value.

In order to ensure the fulfillment of our longterm obligations with respect to our insurance
policies, we value risk management as one ofour most important management issues and areworking to further improve and strengthen our risk
management structure.

Risk Management Structure
Asahi Lifeʼs Board of Directors has establisheda Basic Policy on Risk Management. This policy
is established to comprehensively identify risks
managed by the entire Group, and to manage suchrisks appropriately to achieve management targets.
Within this Basic Policy, we have identified thevarious types and locations of risks faced by theGroup as a whole, and with respect to each risk, we
set down certain risk management methods.
Each executive department in the company
works to appropriately control risk in the operations
under their jurisdiction as per the basic policy andrules for each risk type, while each risk management
department works to properly control risks throughregular monitoring and verification of the status ofrisks facing the Group as a whole.

Moreover, as Group businesses grow, we are
putting together a risk management infrastructure
for the entire Group through our Insurance Group
Compliance and Risk Management Committee.
Furthermore, specific risks are not necessarily
independent and may be linked to and affect one
another, and for this reason a single department
is responsible for comprehensive quantitative andqualitative risk management for the Group as awhole.
Risk management status is periodically reported inmanagement meetings and the Board of Directors,
and the appropriateness and effectiveness of ourrisk management structure are audited by ourInternal Audit Department.

Risk Appetite
In order to promote the achievement of ourstrategic targets in the mid-term management
plan and comprehensive annual business plan,
we set a certain risk appetite policy to ensure
appropriate risk-taking and risk control based on
both quantitative and qualitative risk evaluation.

This policy sets both levels of tolerable risk forgenerating earnings and risks to be curbed in theinterest of financial soundness.

27

8. Governance StructureEnterprise Risk Management (ERM)
Asahi Life promotes Enterprise Risk Management(ERM) in order to ensure financial soundness andimprove profitability through comprehensive
management of risk facing the entire company.
Specifically, we establish risk management
indicators based on a risk appetite policy, conduct
quantitative and qualitative assessments to identify
problems, and then implement countermeasures asappropriate for risk severity.
Additionally, we implement the Own Risk andSolvency Assessment (ORSA), a process to evaluate
our management risks and own capital, and pursue
risk management that is integrated into our businessstrategy.
With respect to qualitative risk evaluation, we

ascertain our risk profile and specify crucial risks tomanagement by identifying not only current but
also potential risks that are discovered through ourControl Self-Assessment (CSA), which we conduct ineach operational division. We also strive to identify
risks at an early stage and to mitigate these risks
through measures such as warning analysis.
In quantitative risk evaluations, we evaluate thesufficiency of our own capital (surplus) based on
both accounting standards and economic value.
Specifically, in economic value-based evaluations,
we monitor and manage the sufficiency of current
surplus against overall risk volume (i.e., the Economic
Solvency Ratio, ESR). Also, we have set our ESR
targets to keep the ESR at the stable level.

Asset Liability Management (ALM)
Asahi Life engages in asset liability management(ALM) that is guided by the asset and risk
management policies established by liability groups.
These liability groups are categorized according
to the characteristics of insurance policies. Basedon the asset and risk management policies, we
confirm the appropriateness of our investments.
We structure our asset portfolio concentrating on

yen interest-bearing assets such as domestic bonds
and loans, taking into consideration the adaptationof existing assets to the liability characteristics of
insurance policies. The majority of domestic bonds
are classified as policy-reserve-matching bonds,
which are valued at their amortized cost, with the aimof reducing the impact of interest rate fluctuations.

Stress Tests
Stress tests are a way of understanding andanalyzing the impact on financial soundness of
scenarios such major fluctuations in the financial
markets causing losses and declining market value
for Asahi Lifeʼs investment portfolio, or a major
earthquake or other disaster generating large
insurance claims that cause losses for Asahi Life.
We position these tests as a tool complementary
to statistical risk measurement methods. Stress test
results are periodically reported at Management
Meetings and used to consider management or
financial countermeasures against such scenarios.

Investment risk-related stress tests are also used toverify the validity of investment plans and develop
hedging policies.
Stress tests are also conducted for extremely
unlikely risk phenomena that would nonethelesscause tremendous losses in the event that they did
occur, in the interest of properly understanding suchphenomena. These stress tests are based on risk
profiles and seek to identify scenarios that would
have a substantial impact on financial soundness,and the specific financial impact thereof is reported
at Management Meetings.

Officers (as of July 4, 2023)
President and Representative Director

Director

Director

Statutory Auditor

Hiroki Kimura

Kenichiro Ishijima

Tatsuya Tanaka*1

Mitsuyoshi Shibata*2

Representative Director and Senior Managing Executive Officer

DirectorStanding Statutory Auditor

Statutory Auditor

Yasuhiro Iguchi

Kazuko Ohya*1

Kaoru Masuda

Yoichi Kikuchi*2

Director and Management Executive Officer

DirectorStanding Statutory Auditor

Kenichi Ikeda

Takashi Tsukamoto*1

Shinichiro Ogawa

Director and Management Executive Officer

Director

Statutory Auditor

Kouichi Kashimada

Takaaki Ishii*1

Tadayuki Seki*2

Director and Executive Officer

Masahiro Shimotori

28

Director and Executive Officer*1 Outside director

Takahiro Ono*2 Outside statutory auditor

Asahi Mutual Life Insurance Company Annual Report 2023

9. Consolidated Financial Statements
Consolidated Balance Sheets
Asahi Mutual Life Insurance Company and its Consolidated Subsidiaries
Millions of
U.S. Dollars

Millions of Yen
As of March 31
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

2023¥

Intangible fixed assets:
Software
Other intangible fixed assets
Agency accounts receivable
Reinsurance receivables
Other assets
Net defined benefit assets
Deferred tax assets
Customersʼ 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¥¥¥

50,601
166,000
20,292
4,249,612
303,9612022¥

47,030111,000
22,5344,536,365
311,416

2023
$

378
1,243
151
31,825
2,276

212,541
142,153
1,360
1,062
2,906
360,023

216,027
146,679
2,194
1,175
3,065
369,142

1,591
1,064
10
7
21
2,696

24,38013,672
38,053
6
26,871
58,965
421
8,745
600
(648)
5,283,507

23,347
9,907
33,255
11
6,788
64,605
524
168
–
(550)
5,502,292

182
102
284
0
201
441
3
65
4
(4)
39,56736,411
4,272,203
27,103
4,335,719
826
150,555
294,447
31,54838,2100
15,062600
4,866,969¥¥

32,0254,365,560
28,644
4,426,229
776
102,424
378,694
32,852
48,2102,913
15,711–
5,007,812$$

272
31,994202
32,470
6
1,127
2,205
236
286
0
112
4
36,44851,000206,000
281
79,001
336,283

91,000166,000
281
111,982369,264

381
1,542
2
591
2,518

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

173,938(46,739)(2,077)125,12194
494,480
5,502,292

978
(362)
(15)
600
0
3,119
39,567¥$29

9. Consolidated Financial Statements

Consolidated Statements of Income and Consolidated Statements ofComprehensive Income
Asahi Mutual Life Insurance Company and its Consolidated Subsidiaries[Consolidated Statements of Income]Millions of
U.S. Dollars

Millions of Yen
For the years ended March 31
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
Total 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
Total ordinary expenses
Ordinary profit
Extraordinary gains:
Gains on disposal of fixed assets
Reversal of reserve for price fluctuation
Other extraordinary gains
Extraordinary losses:
Losses on disposal of fixed assets
Impairment losses
Provision for reserve for price fluctuation
Other extraordinary losses
Surplus before income taxes

30

Asahi Mutual Life Insurance Company Annual Report 2023

2023¥

418,7992022¥

395,434

2023
$

3,136

117,878
16,117
98
1,913
7,102
429
143,540
109,299
671,638

120,142
11,950
317
3,067
6,872
2,199
144,550
70,423
610,408

882
120
0
14
53
3
1,074
818
5,029

110,749
112,411
97,21881,755
15,104417,238

107,517
116,767
73,011
79,236
5,988
382,521

829
841
728
612
113
3,124

4,386
3
4,389

3,453
3
3,456

32
0
32

3,986
–
25,525114
466
18,82699
5,565
10,31364,899137,405
37,914
661,847
9,791

4,876
1,133
11,177
273
48
2,510
141
5,511
10,981
36,655
123,403
35,050581,087
29,321

29
–
191
0
3
140
0
41
77
486
1,029
283
4,956
73

1,889
9,999
–
11,888

2,925
–
3
2,928

14
74
–
89

2,720
3,289
–
44
6,054
15,625

2,751
1,149
2,530
130
6,561
25,687

20
24
–
0
45
117

9. Consolidated Financial Statements

Millions of
U.S. Dollars

Millions of Yen
For the years ended March 31
Income taxes:
Current
Deferred
Total income taxes
Net surplus
Net surplus attributable to non-controlling interests
Net surplus attributable to the Parent Company

2023

¥

(1,284)
5,343
4,058
11,56653
11,5132022
10,963(5,012)
5,950
19,73751
19,685

¥

2023
(9)
40
30
86
0
86

$

[Consolidated Statements of Comprehensive Income]Millions of
U.S. Dollars

Millions of Yen
For the years ended March 31
Net surplus
Other comprehensive income:Net unrealized gains (losses) on available-for-salesecurities, net of tax
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income:Comprehensive income attributable to the Parent
Company
Comprehensive income attributable to non-controllinginterests
Total comprehensive income

2023
¥

¥

11,5662022¥

19,7372023$

86(43,270)(26)(43,296)(39,263)(728)(39,991)

(324)
0
(324)

(31,783)(20,305)(238)

53(31,730)¥51(20,254)

$

0
(237)

31

9. Consolidated Financial Statements

Consolidated Statements of Changes in Net Assets
Asahi Mutual Life Insurance Company and its Consolidated Subsidiaries
Millions of Yen
Foundation funds and others
For the year ended March 31, 2023

Beginning balance
Changes in the fiscal year:
Additions to reserve for dividends to policyholders
Additions to reserve for redemption of foundation
funds
Payment of interest on foundation funds
Net surplus attributable to the Parent Company
Redemption of foundation funds
Reversal of land revaluation differences
Net changes, excluding foundation funds and others
Net changes in the fiscal year
Ending balance

Reserve for
Total
Foundation redemption Reserve for Consolidated foundationof foundation revaluation
surplusfunds and
funds
funds
others¥ 91,000 ¥ 166,000 ¥281 ¥ 111,982 ¥ 369,264(2,121)40,000(40,000)(4,040)11,513(40,000)
1,666(40,000)
40,000¥ 51,000 ¥ 206,000 ¥(2,121)(4,040)11,513(40,000)
1,666–(32,981)(32,981)281 ¥ 79,001 ¥ 336,283

Millions of Yen
Accumulated other comprehensive income

For the year ended March 31, 2023

Beginning balance
Changes in the fiscal year:
Additions to reserve for dividends topolicyholders
Additions to reserve for redemption offoundation funds
Payment of interest on foundation funds
Net surplus attributable to the Parent
Company
Redemption of foundation funds
Reversal of land revaluation differences
Net changes, excluding foundation
funds and others
Net changes in the fiscal year
Ending balance

32

Asahi Mutual Life Insurance Company Annual Report 2023

Net
unrealized
Total
NonAccumulated accumulated
gains (losses)
Land
controlling
remeasurements
on available- revaluation of defined
otherinterests
for-saledifferences benefit plans comprehensive
securities,
incomenet of tax¥ 173,938 ¥ (46,739) ¥(2,077) ¥ 125,121 ¥Total net
assets94 ¥ 494,480(2,121)(4,040)11,513(40,000)
1,666(43,270)(1,666)(43,270)(1,666)¥ 130,668 ¥ (48,406) ¥(26)(44,963)(26)(44,963)(2,104) ¥ 80,157 ¥1(44,962)1(77,943)
96 ¥ 416,537

9. Consolidated Financial Statements

Millions of Yen
Foundation funds and others
For the year ended March 31, 2022

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

Reserve for
Total
Foundation redemption Reserve for Consolidated foundationof foundation revaluation
surplusfunds and
funds
funds
others¥ 91,000 ¥ 166,000 ¥281 ¥ 97,154 ¥ 354,436(2,153)(4,089)19,685
1,384––¥ 91,000 ¥ 166,000 ¥(2,153)(4,089)19,685
1,384–
14,827
14,827281 ¥ 111,982 ¥ 369,264

Millions of Yen
Accumulated other comprehensive income

For the year ended March 31, 2022

Beginning balance
Changes in the fiscal year:
Additions to reserve for dividends topolicyholders
Payment of interest on foundation funds
Net surplus attributable to the Parent
Company
Reversal of land revaluation differences
Net changes, excluding foundation
funds and others
Net changes in the fiscal year
Ending balanceNet
unrealized
Total
NonAccumulatedLand
gains (losses)
accumulated controlling
remeasurements
on available- revaluation of defined
otherinterests
differences benefit plans comprehensive
for-salesecurities,
incomenet of tax¥ 213,201 ¥ (45,354) ¥(1,349) ¥ 166,497 ¥Total net
assets79 ¥ 521,014(2,153)(4,089)19,685
1,384(39,263)(1,384)(39,263)(1,384)¥ 173,938 ¥ (46,739) ¥(728)(41,375)(728)(41,375)(2,077) ¥ 125,121 ¥14(41,360)
14(26,533)
94 ¥ 494,480

33

9. Consolidated Financial Statements

Millions of U.S. Dollars
Foundation funds and others
Reserve for
Total
Foundation redemption Reserve for Consolidated foundationof foundation revaluation
surplusfunds and
funds
funds
othersFor the year ended March 31, 2023

Beginning balance
Changes in the fiscal year:
Additions to reserve for dividends to policyholders
Additions to reserve for redemption of foundation
funds
Payment of interest on foundation funds
Net surplus attributable to the Parent Company
Redemption of foundation funds
Reversal of land revaluation differences
Net changes, excluding foundation funds and others
Net changes in the fiscal year
Ending balance

$

681 $

1,243 $

2 $

838 $
(15)

299

(15)

(299)
(30)
86
12

(30)
86
(299)
12

(246)
591 $

(246)
2,518

(299)

$

(299)
381 $

299
1,542 $

–
2 $

2,765

Millions of U.S. Dollars
Accumulated other comprehensive income

For the year ended March 31, 2023

Beginning balance
Changes in the fiscal year:
Additions to reserve for dividends topolicyholders
Additions to reserve for redemption offoundation funds
Payment of interest on foundation funds
Net surplus attributable to the Parent
Company
Redemption of foundation funds
Reversal of land revaluation differences
Net changes, excluding foundation
funds and others
Net changes in the fiscal year
Ending balance

34

Asahi Mutual Life Insurance Company Annual Report 2023

Net
unrealized
Total
NonAccumulated accumulated
gains (losses)
Land
controlling
remeasurements
on available- revaluation of defined
otherinterests
for-saledifferences benefit plans comprehensive
securities,
incomenet of tax$

1,302 $

(350) $

(15) $

937 $Total net
assets

0 $

3,703

(15)

(30)
86
(299)
12

$

(324)
(324)
978 $

(12)
(12)
(362) $

(0)(0)(15) $

(336)
(336)
600 $

0
0
0 $

(336)
(583)
3,119

9. Consolidated Financial Statements

Consolidated Statements of Cash FlowsAsahi Mutual Life Insurance Company and its Consolidated Subsidiaries
Millions of
U.S. Dollars

Millions of Yen
For the years ended March 31
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 frominvesting and financing activities
Others, net
SubtotalInterest, dividends and other income received
Interest paid
Dividends to policyholders paid
Income taxes (paid) refunded
Net cash provided by (used in) operating activities
II. Cash flows from investing activities
Proceeds from sales and redemptions of monetaryclaims bought
Purchases of securities
Proceeds from sales and redemptions of securities
Disbursements for loans
Proceeds from collections of loans
Proceeds from derivative financial instruments
Increase (decrease) in payables under securities
borrowing transactions
Others, net①Total of investing activities[I+①]
Purchases of tangible fixed assets
Proceeds from sales of tangible fixed assets
Others, net
Net cash provided by (used in) investing activities
III. Cash flows from financing activities
Proceeds from debt borrowing
Redemption of debt borrowing
Proceeds from issuance of bonds
Redemption of bonds
Redemption of foundation funds
Payment of interest on foundation funds
Dividends paid to non-controlling interests
Others, net
Net cash provided by (used in) financing activities
IV. Net increase (decrease) in cash and cash equivalents
V. Cash and cash equivalents at the beginning of the year
VI. Cash and cash equivalents at the end of the year

2023
¥

¥

15,625
5,565
13,4393,289
4,386(93,356)
3
99(1,119)(9,999)(117,878)
9,461
18,826
3,986(1,913)(468)(20,082)2022¥

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)

2023
$

117
41
100
24
32
(699)
0
0
(8)
(74)
(882)
70
140
29
(14)
(3)
(150)

(3,867)50(3,396)
95

(28)
0

1,680
12,250(160,021)
120,844(3,693)(3,664)(10,344)(56,880)

(437)
4,050
(127,314)
121,824(5,178)(3,562)(11,462)(25,694)

12
91(1,198)
904
(27)
(27)
(77)
(425)

2,199
(563,641)
801,416(65,193)
74,249(129,065)

2,573(438,244)
559,515(55,639)
50,961(49,969)

16(4,221)
6,001
(488)
556
(966)

2,698
–
122,663
65,782(8,232)
4,147(14,332)
104,245737(1,133)68,801
43,106(8,703)
8,084(11,328)
56,854

20
–
918
492
(61)
31
(107)
780

10,000(2,000)48,131–(40,000)(4,040)(51)(834)
11,20558,570
158,030
216,601––
15,000(40,349)–(4,089)(36)(803)(30,279)880
157,149
158,030

74
(14)
360
–
(299)
(30)
(0)
(6)
83
438
1,183
1,622

¥

$

35

9. Consolidated Financial Statements

Notes to Consolidated Financial Statements
Asahi Mutual Life Insurance Company and its Consolidated Subsidiaries

I. Presentation of Consolidated Financial Statements
1. Basis of Presentation
The accompanying consolidated financial statements have been prepared from the accounts maintainedby Asahi Mutual Life Insurance Company (the “Company”) and its consolidated subsidiaries in accordancewith the provisions set forth in the Insurance Business Act of Japan and its related rules and regulations
applicable to the mutual life insurance industry and in conformity with accounting principles generally
accepted in Japan, which are different in certain respects from accounting principles generally accepted incountries 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 thepresented financial statements for use by readers outside Japan.
In preparing the accompanying consolidated financial statements, certain reclassifications have been
made to the consolidated financial statements issued domestically in order to present them in a format
which is more familiar to readers outside Japan.

2. U.S. Dollar Amounts
The translations of yen amounts into U.S. dollar amounts are included solely for the convenience of thereader and have been made, as a matter of arithmetical computation only, at the rate of ¥133.53 = US$1.00,
the effective rate of exchange at the balance sheet date of March 31, 2023.
The translations should not be construed as representations that such yen amounts have been or could in
the future be, converted into U.S. dollars at that or any other rate.

3. Principles of Consolidation(1) Scope of consolidation
The consolidated subsidiaries as of March 31, 2023 and 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, 2023. As such non-consolidated subsidiaries are notconsidered to materially affect any reasonable determination as to the financial position and result of
operation of the Companyʼs 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 also immaterial as a whole,
therefore, the equity method is not applied.
(3) Fiscal year-end of consolidated subsidiaries
The fiscal year-end of the consolidated subsidiaries is March 31.

36

Asahi Mutual Life Insurance Company Annual Report 2023

9. Consolidated Financial Statements(4) Amortization of goodwill
Goodwill is fully expensed as incurred.

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

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

ii) Held-to-maturity debt securities are stated at amortized cost (straight-line method) determined by
the moving average method.
iii) Policy-reserve-matching bonds, which are in accordance with “Temporary Treatment of Accounting
and Auditing Concerning Policy-reserve-matching Bonds in Insurance Industry” (Industry Audit
Committee Report No. 21 issued by the Japanese Institute of Certified Public Accountants(“JICPA”)), are stated at amortized cost (straight-line method) determined by the moving averagemethod.
iv) Investments in unconsolidated subsidiaries and affiliates not accounted for under the equity
method are stated at cost.
v) Available-for-sale securities except for the following are stated at fair market value based on themarket prices at the balance sheet date, of which costs of sales are determined by the moving
average method. Available-for-sale securities, of which public and corporate bonds including foreign
bonds with the difference between acquisition cost and face value considered as an adjustment
of interest, are stated at amortized cost (straight-line method) determined by the moving averagemethod. 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 policy-reserve-matching bonds in accordancewith “Temporary Treatment of Accounting and Auditing Concerning Policy-reserve-matching Bonds inInsurance Industry” (Industry Audit Committee Report No. 21 issued by the JICPA).
Note for the fiscal year ended March 31, 2022
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 policy-reserve-matching bonds in accordancewith “Temporary Treatment of Accounting and Auditing Concerning Policy-reserve-matching Bonds inInsurance 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 thepremise 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 withvariable interest rates and New Single Premium Individual Annuity effective on and after April 2, 2012).
This change did not have any effects on the consolidated balance sheet and consolidated statementof income 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.

37

9. Consolidated Financial Statements(4) Revaluation of land
The Company revalued the land for business purposes based on the Act on Revaluation of Land (ActNo. 34 promulgated on March 31, 1998). The difference between fair value and book 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 is recorded as deferred tax liabilities for revaluation.
■ Date of revaluation: March 31, 2001
■ Method of revaluation as prescribed for in Article 3, Paragraph 3 of the said Act:The calculation is based on the publicly announced appraisal value with certain adjustments set forthin 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 thereal-estate appraiser set forth in Article 2, Item 5 of the said Ordinance with certain reasonableadjustments.
(5) Depreciation of tangible fixed assets
Depreciation of the Companyʼs 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.
(7) Allowance for possible loan losses
Allowance for possible loan losses is provided in accordance with the Companyʼs standards of selfassessment and write-offs and reserves on credit quality:i)

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

ii) For credit to borrowers who are not currently bankrupt but have a high risk of bankruptcy (hereinafter“borrowers with high possibility of bankruptcy”), the Company provides the amounts deemed asnecessary considering the borrowersʼ ability to pay, within the amounts after deductions of theamount expected to be collected through the disposal of collateral or the execution of guarantees.
iii) For credit to borrowers other than the above, the Company provides the amounts calculated bymultiplying the book value by the actual ratio of bad debt losses on defaults during a certain past
period.
All credit is assessed by the relevant departments in accordance with the Companyʼs standards ofself-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 isprovided based on the results of these assessments.
For consolidated subsidiaries, the Company records the allowance amounts deemed necessary inaccordance mainly with the Companyʼs standards of self-assessment and write-offs and reserves on
credit quality.
For credit to legally bankrupt borrowers and substantially bankrupt borrowers, the amounts remaining
after deductions of collateral value or the amounts collectible through the execution of guarantees are
written-off directly from the book value as the estimated uncollectible amounts. The amounts writtenoff were ¥5 million (US$0 million) and ¥24 million as of March 31, 2023 and 2022, respectively.

38

Asahi Mutual Life Insurance Company Annual Report 2023

9. Consolidated Financial Statements(8) Accounting for employeesʼ retirement benefits and method of amortizing retirement benefit expenses
Net defined benefit liabilities and assets are presented for the employeesʼ 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 of six years starting
the following year.
■ Prior service cost is charged to income when incurred.
Previously, actuarial differences were amortized under the straight-line method over a period of sevenyears. This period has been shortened to six years effective from the fiscal year ended March 31, 2023,
since the average remaining working lives of the employees have fallen below seven years.
The impact of this change on ordinary profit and surplus before income taxes for the fiscal year ended
March 31, 2023 is immaterial.
Note for the fiscal year ended March 31, 2022
Net defined benefit liabilities and assets are presented for the employeesʼ 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 of seven years
starting the following year.
■ Prior service cost is charged to income when incurred.
(9) Reserve for price fluctuation
Reserve for price fluctuation is calculated in accordance with Article 115 of the Insurance Business Act.
(10) Accounting for hedging activities
Hedging activities are accounted for in accordance with the “Accounting Standards for Financial
Instruments” (Accounting Standards Board of Japan (“ASBJ”) Statement No. 10).
The Company mainly applies the following hedging activities:
The Company applies deferred hedge accounting and the exceptional accounting treatment (“Tokureishori”) for interest rate swaps used to hedge the cash flow volatility of certain loans.
The Company also applies fair value hedge accounting for hedging activities related to foreignexchange rate fluctuation exposures on certain bonds, investment trusts and others denominated inforeign currencies.
The Company also applies designated hedge accounting (“Furiate-shori”) for currency swaps used
to hedge foreign exchange rate fluctuation exposures on the foreign currency-denominated bonds
issued by the Company.
The Company also applies designated hedge accounting (“Furiate-shori”) for the foreign currencydenominated transactions other than the above.
The effectiveness of a hedge is mostly assessed by a ratio analysis, comparing the fluctuations in thefair 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 not deductible fromconsumption taxes withheld and that are stipulated to be deferred under the Corporation Tax Act ofJapan, are deferred as prepaid expenses and amortized equally over five years.

399. Consolidated Financial Statements

Consumption taxes other than deferred consumption taxes are recognized as an expense whenincurred.
(12) Premium and other income (excluding reinsurance revenue)
Premium and other income (excluding reinsurance revenue) are recorded in principle for insurance
policies for which insurance premium has been received and the insurerʼs liability under the insurance
policies or insurance coverage period has commenced by the relevant amounts received.
Of insurance premiums, the portion corresponding to the period that has yet to pass as of the end of
the fiscal year is set aside as policy reserves in accordance with Article 116 of the Insurance BusinessAct and Article 69, Paragraph 1, Item 2 of the Enforcement Regulation of the Insurance Business Act.
(13) Reinsurance revenue
Reinsurance revenue is recorded as reinsurance claims and others received based on the proportion
ceded in reinsurance and others stipulated in the reinsurance contracts in the reporting period when theincome 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 sameamounts are recorded as reinsurance receivables as unamortized ceding commissions and amortizedover 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 forwhich amounts calculated under policy conditions have been paid in the occurrence of insured events
under the policy conditions.
In accordance with Article 117 of the Insurance Business Act and Article 72 of the Enforcement
Regulation of the Insurance Business Act, reserve for outstanding claims is set aside for claims, etc.
which is not recorded as payment of claims, etc. but for which the Company has payment obligationor 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.
With respect to reserve for outstanding claims incurred but not reported events (referring to claims
for which the occurrence of the insured events has not been reported but the Company finds that
insured events have already occurred; hereinafter the same), the scope of payment of hospitalization
benefits was changed in the fiscal year ended March 31, 2023 with regard to people with diagnoses of
COVID-19 given and under the care of a doctor and the like at an accommodation facility or at home(“deemed hospitalizations”). As a result of this change, an appropriate amount of reserves cannot
be obtained with the calculation method set forth in the main rules in Article 1, Paragraph 1 of theJapanese Ministry of Finance Public Notice No.234, 1998 (“IBNR Notice”). The Company therefore
records the amount that was calculated using the following method, pursuant to provisions in theproviso of Article 1, Paragraph 1 of IBNR Notice (the “Proviso”).
(Overview of the calculation method)
The Company calculates the reserve for outstanding claims incurred but not reported events for
deemed hospitalizations and the others separately.
The amount of reserve for outstanding claims incurred but not reported events other than deemedhospitalizations is calculated using the same manner as that set forth in the main rules in Article 1,
Paragraph 1 of IBNR Notice excluding the amount related to deemed hospitalizations from a required
amount of reserves for incurred but not reported events and the amount of claim payments for all thefiscal years, as set forth in the main rules in Article 1, Paragraph 1 of IBNR Notice.
The amount of reserve for outstanding claims incurred but not reported events for deemedhospitalizations is calculated based on the amount for deemed hospitalizations of those at high riskof serious illness after September 26, 2022, the number of new infections and the number of new
infections over the last three months, considering the average days it takes from the occurrence of theinsured events to the filing of claims.
Note for the fiscal year ended March 31, 2022

40

Asahi Mutual Life Insurance Company Annual Report 2023

9. Consolidated Financial Statements

Claims and other payments (excluding reinsurance premiums) are recorded for insurance policies forwhich amounts calculated under policy conditions have been paid in the occurrence of insured events
under the policy conditions 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 the Company has payment obligationor 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 inreinsurance and others stipulated in the reinsurance contracts in the reporting period when the income
and expenditure for reinsurance ceded are recorded.
Part of policy reserves and reserve for outstanding claims corresponding to insurance policies whichhave 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 the statement ofcalculation procedures for insurance premiums and policy reserves (Article 4, Paragraph 2, Item 4 of
the Insurance Business Act) pursuant to Article 116, Paragraph 1 of the Insurance Business Act, forinsurance policies under which the insurerʼs 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 the following
method:In regard to the policies subject to the standard policy reserves, the method as prescribed by theCommissioner of Financial Services Agency (Japanese Ministry of Finance Public Notice No. 48, 1996)
is applied.
In regard to the policies not subject to the standard policy reserves, the net level premium method isapplied.
Regarding policy reserves, the chief actuary checks that policy reserves are appropriately accumulated
in each fiscal year, pursuant to Article 121, Paragraph 1 of the Insurance Business Act and Article 80 of
the Enforcement Regulation of the Insurance Business Act.
Contingency reserves included in policy reserves are set aside in accordance with Article 116 of the
Insurance Business Act and Article 69, Paragraph 1, Item 3 of the Enforcement Regulation of the
Insurance Business Act to cover risks that may accrue in the future in order to ensure the performanceof future obligations under insurance policies.
(17) Impairment losses of tangible fixed assets
Impairment losses of the Companyʼs tangible fixed assets are calculated by the following method.
i)

Calculation method
Real estate and other assets used for insurance business operations are classified as one asset
group as a whole. Other assets such as real estate for rent, real estate not in use and real estatescheduled to be sold are classified as one group individually. As for real 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 indications of impairment on each asset group when earnings frombusiness operations using the asset group continuously become negative.
As for asset groups for which indications of impairment are identified, when total amounts
of undiscounted net future cash flows from the asset groups are less than their book values,
the Company recognizes impairment losses and reduces the book values to their recoverable
amounts.

41

9. Consolidated Financial Statements

The recoverable amounts of real estate and other assets for insurance business operation and realestate for rent are determined at value in use or net realizable value. The recoverable amounts ofreal estate not in use and real estate scheduled to be sold are determined at net realizable value.
Value in use is determined as the discounted present value of estimated net future cash flows anddiscount rate used in the calculation is based on the cost of capital of the Company.
Net realizable value is calculated based on the appraisal value in accordance with “Real EstateAppraisal Standards” or the publicly announced appraisal value after deducting expected disposal
costs.
ii) Key assumptions
Key assumptions for the estimated net future cash flows which are used in recognizing impairment
losses and calculating value in use are usage plans considering current status of use of asset
groups, including tenancy rates, rents and others. These assumptions may be affected by economic
condition and changes specific to asset groups.
iii) Effects on consolidated financial statements for the following fiscal year
While the Company considers key assumptions for the estimated net future cash flows which areused in recognizing impairment losses and calculating value in use are best estimate based on
available information including external information, impairment losses may occur in the following
fiscal year due to future uncertainties.
Furthermore, the appraisal value in accordance with “Real Estate Appraisal Standards” may beaffected by future real estate market trends. In case that net realizable value decreases as a result,
impairment losses may occur in the following fiscal year.
(18) Software
Capitalized software for internal use owned by the Company and its subsidiaries (included in intangible
fixed assets in the consolidated balance sheets) is amortized using the straight-line method over theestimated useful lives.

2. Accounting Changes
The Company and part of its subsidiaries have applied “Implementation Guidance on Accounting Standard
for Fair Value Measurement” (ASBJ Guidance No. 31, revised on June 17, 2021) from the fiscal year ended
March 31, 2023.
In accordance with the transitional treatment set forth in Paragraph 27-2 of Implementation Guidanceon Accounting Standard for Fair Value Measurement, the Company has applied new accounting policies
prospectively. Following this, some investment trusts are categorized into some levels in the following“Note 6. Matters Concerning Fair Value of Major Financial Instruments and Breakdown by Input Level”.
Note for the fiscal year ended March 31, 2022
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 thetransitional treatment set forth in Paragraph 19 of "Accounting Standard for Fair Value Measurement"
and Paragraph 44-2 of "Accounting Standard for Financial Instruments" (ASBJ Statement No.10, July4, 2019), the Company has applied new accounting policies prospectively. As a result, available-for-salesecurities, 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 not applied and foreign currencydenominated 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 date from 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, the Company has used fairvalue based on the average of market prices during the final month of fiscal year as before.

3. Accounting Standards Issued but Not Yet Effective
Note for the fiscal year ended March 31, 2022

42

Asahi Mutual Life Insurance Company Annual Report 2023

9. Consolidated Financial Statements

The Company and part of its subsidiaries made a request for approval for the application of the group 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 the Group Tax Sharing System”(ASBJ PITF No.42, issued on August 12, 2021) and its contents are as follows:i)

Overview
The practical solution was issued to stipulate the accounting and disclosure treatment of corporatetax, local corporate tax and tax effect accounting when applying the group tax 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 the consolidated taxation system and transition to thegroup 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
Note for the fiscal year ended March 31, 2022
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 with variableinterest rates and new single premium individual annuities which have an effective date on or after
April 2, 2012, the Company mainly invests in domestic bonds, engaging in matching asset liability
management, or Matching ALM, which aims at matching the duration to outstanding insurance
liabilities to avoid interest rate fluctuation risks.
■ For individual life insurance and individual annuities other than above, the Company holds yendenominated fixed income investments, including bonds and loans, as the core of its asset portfolio.
The Company also holds domestic stocks, foreign securities and real estate assets to enhance its
profitability.
Derivatives are mainly used to hedge market price fluctuation risk and exchange rate fluctuation risk
regarding securities and exchange rate fluctuation risk related to the foreign currency-denominated bonds
issued by the Company. As the major financial instruments, securities are exposed to market risk and credit
risk, loans are exposed to credit risk and exchange rate fluctuation risk, and derivatives are exposed tomarket risk and credit risk.
In managing market risks, the following two methods are used. One is the quantitative risk managementof 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 Companyʼs whole portfolio, simulating scenarios ofdeteriorating market environments. This is for the purpose of managing an appropriate asset allocation
within the ranges of acceptable risks.
In managing credit risks, the Company quantifies the credit risks of entire portfolio through VaR method
and controls the amount of risks within an acceptable range. Furthermore, the Company assigns in-housecredit ratings to our borrowers in accordance with the creditworthiness of each borrower. Strict credit
research of each borrower before lending as well as following up on any changes of creditworthiness ofeach borrower after lending are implemented by Risk Management Department, which is independent of43

9. Consolidated Financial Statements

the departments executing investments and lending. Maximum limits of credit are set up for each borrowerin accordance with its credit risks to avoid the concentration of credit risks on specific corporations andspecific 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 andliabilities as of March 31, 2023 were as follows. The following table does not include cash and deposits, callloans and payables under securities borrowing transactions which are mostly settled in a short term andtheir fair values approximate their book values.
Millions of Yen
2023
As of March 31
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¥Fair Value

20,292
19,395897
4,175,095
26,198269,436
2,093,763
1,785,696
303,961
30,254
273,7074,499,350
150,555
49,000199,555(9,204)(1,807)(7,397)¥22,187
21,290897
4,212,252
26,198291,147
2,109,209
1,785,696
310,838
30,254
280,583
4,545,278
147,092
50,490
197,583(9,204)(1,807)(7,397)

Difference
¥

1,894
1,894
–
37,156–
21,711
15,445
–
6,876
–
6,876
45,927(3,462)
1,490(1,972)–––* Assets and liabilities generated by derivative financial instruments are offset and presented net. Net liabilities in total are presented
in parentheses.

Millions of U.S. Dollars
2023
As of March 31
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$151
145
6
31,267196
2,017
15,68013,372
2,276
226
2,049
33,695
1,127
366
1,494
(68)
(13)
(55)

Fair Value
$

166
159
6
31,545196
2,180
15,795
13,372
2,327
226
2,101
34,039
1,101
378
1,479
(68)
(13)
(55)

Difference
$

14
14
–
278
–
162
115
–
51
–
51
343
(25)
11
(14)
–
–
–

* 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

44

Asahi Mutual Life Insurance Company Annual Report 2023

9. Consolidated Financial Statements

subsidiaries and affiliates, reported in the consolidated balance sheet was ¥21,577 million (US$161 million)
as of March 31, 2023.
Investment trusts which are accounted for in accordance with Paragraph 24-3 and 24-9 of “Implementation
Guidance on Accounting Standard for Fair Value Measurement” are included in the table above.
Investments in partnerships and others which are accounted for in accordance with Paragraph 24-16 of“Implementation Guidance on Accounting Standard for Fair Value Measurement” are not included in thetable above. The amount of the investments in partnerships and others, reported in the consolidatedbalance sheet was ¥52,939 million (US$396 million) as of March 31, 2023.
Note for the fiscal year ended March 31, 2022
The balance sheet amounts, fair values and the differences between those of major financial assets andliabilities as of March 31, 2022 were as follows. The following table does not include cash and deposits, callloans and payables under securities borrowing transactions which are mostly settled in a short term andtheir fair values approximate their book values.
Millions of Yen
2022
As of March 31
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 in accordance 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 the table above. The amount of the investmentsin 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 accordance with theobservability and significance of the inputs used to measure the fair value.
Level 1: Fair values measured by unadjusted quoted prices in active markets for identical assets or liabilities
Level 2: Fair values measured by inputs which are directly or indirectly observable other than Level 1 inputs
Level 3: Fair values measured by significant unobservable inputs

45

9. Consolidated Financial Statements

When several inputs that have significant impact on fair value measurement are used and those inputs
are categorized into different levels, the fair value is categorized into the lowest priority level for fair value
measurement among the levels to which each of the inputs belongs.
(1) Financial assets and liabilities recorded at fair values on the consolidated balance sheets
Millions of Yen
2023
As of March 31

Fair Value
Level 1

Monetary claims bought
Available-for-sale securities
Securities*1
Trading securities
OthersAvailable-for-sale securities
National government bonds and local
government bonds
Corporate bonds
Domestic stocks
Foreign bonds
OthersTotal assets
Derivative financial instruments*2
Currency-related
Stock-related¥––
547,776––
547,776

Level 2¥

24,700–431,919
8,310
82,846
547,7760–0––1,060,016
26,19826,1981,033,818¥

Level 3897
897
64,899––64,8992,683
374,147–
477,007179,980
1,060,016(9,755)(9,755)
–

Total
¥

–
–
–
64,899–65,796
549
–
549

897
897
1,672,692
26,19826,198
1,646,493
27,383374,147
431,919550,216
262,826
1,673,589(9,204)(9,755)550*1 Investment trusts which are accounted for in accordance with Paragraph 24-3 and 24-9 of “Implementation Guidance on
Accounting Standard for Fair Value Measurement” are not included in the table above. The balance sheet amount of theinvestment trusts which are accounted for in accordance with paragraph 24-3 of the implementation guidance, was ¥134,005
million (US$1,003 million) as of March 31, 2023. The balance sheet amount of the investment trusts which are accounted for inaccordance with Paragraph 24-9 of the implementation guidance, was ¥5,196 million (US$38 million) as of March 31, 2023.
*2 Assets and liabilities generated by derivative financial instruments are offset and presented net. Net liabilities in total arepresented in parentheses.

Millions of Yen
2022
As of March 31

Fair Value
Level 1

Monetary claims bought
Available-for-sale securities
Securities*1
Trading securities
National government bonds and local
government bonds
Corporate bonds
Domestic stocks
Foreign stocks
Foreign bonds
Available-for-sale securities
National government bonds and local
government bonds
Corporate bonds
Domestic stocks
Foreign bonds
Total assets
Derivative financial instruments*2
Currency-related
Stock-related¥––
580,435
24,719Level 2¥––
1,169,127
1,882¥

Level 3957
957
29,482
–

Total
¥

957
957
1,779,045
26,601

5,830
–
7,914
8,269
2,705
555,716

–
902
–
–
979
1,167,245

–
–
–
–
–
29,482

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

39,829–413,036
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 arepresented in parentheses.

46

Asahi Mutual Life Insurance Company Annual Report 2023

9. Consolidated Financial Statements

Millions of U.S. Dollars
2023
As of March 31

Fair Value
Level 1

Monetary claims bought
Available-for-sale securities
Securities*1
Trading securities
OthersAvailable-for-sale securities
National government bonds and local
government bonds
Corporate bonds
Domestic stocks
Foreign bonds
OthersTotal assets
Derivative financial instruments*2
Currency-related
Stock-related

$

–
–
4,102
–
–
4,102

Level 2
$

184
–
3,234
62
620
4,102
0
–
0

Level 3

–
–
7,938
196
196
7,742

$

Total

6
6
486
–
–
486

20
2,801
–
3,572
1,347
7,938
(73)
(73)
–

$

–
–
–
486
–
492
4
–
4

6
6
12,526196
196
12,330
205
2,801
3,234
4,120
1,968
12,533(68)(73)
4*1 Investment trusts which are accounted for in accordance with Paragraph 24-3 and 24-9 of “Implementation Guidance on
Accounting Standard for Fair Value Measurement” are not included in the table above. The balance sheet amount of theinvestment trusts which are accounted for in accordance with paragraph 24-3 of the implementation guidance, was ¥134,005
million (US$1,003 million) as of March 31, 2023. The balance sheet amount of the investment trusts which are accounted for inaccordance with Paragraph 24-9 of the implementation guidance, was ¥5,196 million (US$38 million) as of March 31, 2023.
*2 Assets and liabilities generated by derivative financial instruments are offset and presented net. Net liabilities in total arepresented in parentheses.

i)

Investment trusts which are accounted for in accordance with Paragraph 24-3 and 24-9 of“Implementation Guidance on Accounting Standard for Fair Value Measurement”a) Reconciliation between the beginning and ending balance, and net unrealized gains (losses)
recognized as gains (losses) for the fiscal year, of the investment trusts which are accounted for inaccordance with Paragraph 24-3 of “Implementation Guidance on Accounting Standard for Fair
Value Measurement”
Millions of Yen
For the year ended March 31
Beginning balance
Gains (losses) and other comprehensive income for the fiscal year:
Gains (losses) recorded for the fiscal year*1
Other comprehensive income recorded for the fiscal year*2
Net amount of purchase, sale, and redemption
Amount of investment trusts whose NAV is deemed as market value
Amount of investment trusts whose NAV is not deemed as market
value
Ending balance
Net unrealized gains (losses) on investment trusts held at the balance
sheet date among the amount recorded to gains (losses) for the
fiscal year*1

Millions of
U.S. Dollars

2023
¥

2023

121,141642
1,926(1,283)
12,221
–

$

907
4
14
(9)
91
–

–
134,005

–
1,003

1,926

14

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

b) Breakdown of balance by restriction on cancellation as of the end of fiscal year
Millions of Yen

Millions of
U.S. Dollars

2023

2023

As of March 31
Investment trusts which need more than 1 month to cancel from thenotification of cancellation
Other than above¥

45,332
88,672

$

339
664

47

9. Consolidated Financial Statementsc) Reconciliation between the beginning and ending balance, and net unrealized gains (losses)
recognized as gains (losses) for the fiscal year, of the investment trusts which are accounted for inaccordance with Paragraph 24-9 of “Implementation Guidance on Accounting Standard for Fair
Value Measurement”
Millions of
U.S. Dollars

Millions of Yen
For the year ended March 31

2023

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

¥

2023
5,104
93
–
93
(0)
–

$

38
0
–
0
(0)
–

–
5,196

–
38

–

–

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

(2) Financial assets and liabilities not recorded at fair values on the consolidated balance sheet
Millions of Yen
2023
As of March 31

Fair Value
Level 1

Monetary claims bought
Held-to-maturity debt securities
Securities
Held-to-maturity debt securities
National government bonds and local
government bonds
Corporate bonds
Foreign bonds
Policy-reserve-matching bonds
National government bonds and local
government bonds
Corporate bonds
Loans
Policy loans
Industrial and consumer loans
Total assets
Bonds payable
Loans payable
Total liabilities

48

Asahi Mutual Life Insurance Company Annual Report 2023¥––
1,715,893
36,263

Level 2¥
20,842
20,842510,901
81,32236,263––
1,679,630–
81,322–429,579––
173,562–

36,26381,322
173,562
2,109,209

1,679,630––––
1,715,893–––

46,179383,400–––
531,744
147,092–
147,092––
310,838
30,254
280,583
484,848–
50,49050,4901,725,809
383,400
310,838
30,254
280,583
2,732,485
147,092
50,490
197,583¥

Level 3447
447
173,562
173,562¥

Total
21,29021,2902,400,357
291,147

9. Consolidated Financial Statements

Millions of Yen
2022
As of March 31

Fair Value
Level 1

Monetary claims bought
Held-to-maturity debt securities
Securities
Held-to-maturity debt securities
National government bonds and local
government bonds
Corporate bonds
Foreign bonds
Policy-reserve-matching bonds
National government bonds and local
government bonds
Corporate bonds
Loans
Policy loans
Industrial and consumer loans
Total assets
Bonds payable
Loans payable
Total liabilities¥––
1,752,190
36,939Level 2¥––592,381
148,494¥

Level 323,29723,297
124,909
124,909¥

Total
23,29723,2972,469,481
310,342

36,939––1,715,251–
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
465,707–42,26042,2601,766,334
392,804
317,500
32,199285,3012,810,279
103,200
42,260145,460

Millions of U.S. Dollars
2023
As of March 31

Fair Value
Level 1

Monetary claims bought
Held-to-maturity debt securities
Securities
Held-to-maturity debt securities
National government bonds and local
government bonds
Corporate bonds
Foreign bonds
Policy-reserve-matching bonds
National government bonds and local
government bonds
Corporate bonds
Loans
Policy loans
Industrial and consumer loans
Total assets
Bonds payable
Loans payable
Total liabilities$––
12,850271

Level 2
$
156
156
3,826
609

Level 3271––
12,578

–
609
–
3,217

–
–
1,299
–

271
609
1,299
15,795

12,578––––12,850
–
–
–

345
2,871
–
–
–
3,982
1,101
–
1,101

–
–
2,327
226
2,101
3,631
–
378
378

12,924
2,871
2,327
226
2,101
20,463
1,101
378
1,479

$

3
3
1,299
1,299

Total
$

159
159
17,9762,180(3) Description of the evaluation methods and inputs used to measure fair valuei)Securities including monetary claims bought which are treated as securities based on “AccountingStandard for Financial Instruments” (ASBJ Statement No. 10)
Fair values of securities for which unadjusted quoted market prices in active markets are available arecategorized as Level 1, which mainly include listed stocks, listed investment trusts and government
bonds. In the case the market is inactive even if the quoted market price is available, thosesecurities 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.

49

9. Consolidated Financial Statements

The fair value of unlisted investment trusts, which have no restriction on cancellation that issignificant enough to require compensation for risk from market participants, are based on thequoted prices and others offered by counterparty financial institutions and categorized as level 2.
Note for the fiscal year ended March 31, 2022
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 and government bonds. In the casethe market is inactive even if the quoted market price is available, those securities are categorized
as Level 2, which mainly include corporate bonds and foreign bonds. In the case the quoted market
price is not available, fair values are measured by evaluation methods such as discounting future
cash flows. In evaluation, the Company maximizes the use of observable inputs including swap
rates, interest rate swap spreads, currency basis and others. When significant unobservable inputs
are used to measure fair values, those securities are categorized as Level 3.
Fair values of investment trusts are measured at the disclosed net asset value and others.
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 categorized into any level.
ii) Loans
As credit exposure for policy loans without specific repayment periods is limited to the amount of
the cash surrender value, the Company considers book value as fair value with assumption that fairvalue approximates book value in light of factors such as projected repayment period and interest
terms. Policy loans are categorized as level 3.
As for industrial and consumer loans, the fair value of loans is stated at theoretical prices calculatedby discounting the future cash flows to the present value by type of loan, using market interest
rates with some adjustments based on internal credit rating. Industrial and consumer loans are
categorized as level 3. The fair value of loans to legally bankrupt borrowers, substantially bankrupt
borrowers and borrowers with high possibility of bankruptcy is stated at the amounts by deducting
estimated losses from the book value before direct write-offs. Loans to legally bankrupt borrowers,
substantially bankrupt borrowers and borrowers with high possibility of bankruptcy are categorized
as level 3.
iii) Bonds payable
The fair value of bonds payable issued by the Company is stated at fair market value. Bonds
payable issued by the Company are categorized as level 2. The fair value of bonds payable forwhich designated hedge accounting (“Furiate-shori”) for currency swaps are applied is stated atfair market value added by the fair value of currency swaps. The Company adopts prices obtained
from external information venders as the fair value of currency swaps.
iv) Loans payableAs for loans payable, the fair value of loans is stated at theoretical prices calculated by discounting
the future cash flows to the present value, using market interest rates with some adjustments basedon the Companyʼs credit risk. Loans payable are categorized as level 3.
v) Derivative financial instruments
As for derivative financial instruments, the fair values of foreign currency forward contracts arestated at theoretical prices calculated by the Company based on the TTM at the balance sheet
date. The fair values of currency options, stock options and interest rate swaptions are stated at thequoted prices offered by counterparty financial institutions.
In evaluation of derivative financial instruments, the Company maximizes the use of observable
inputs. In the case unobservable inputs are not used or impact of unobservable inputs are notmaterial, derivative financial instruments are categorized as level 2. In the case significant
unobservable inputs are used, derivative financial instruments are categorized as level 3.
(4) Quantitative information about financial assets and liabilities measured and stated in the consolidatedbalance sheets at fair value and categorized as Level 3i)50

Quantitative information on significant unobservable inputs

Asahi Mutual Life Insurance Company Annual Report 2023

9. Consolidated Financial Statements

Quoted prices obtained from third parties are used for fair values categorized as level 3 without
adjustment.
ii) Reconciliation between the beginning and ending balance, and net unrealized gains (losses)
recognized as gains (losses) for the fiscal year
Millions of Yen

For the year ended March 31, 2023

Beginning balance
Gains (losses) and other comprehensive
income for the fiscal year:
Gains (losses) recorded for the fiscal
year*1Other comprehensive income recorded
for the fiscal year*2
Net amount of purchase, sale, issue, andsettlement
Transfer to fair values of Level 3*3
Transfer from fair values of Level 3*4
Ending balance
Net unrealized gains (losses) on financial
assets and liabilities held at the balance
sheet date among the amount recorded
to gains (losses) for the fiscal year*1

Monetaryclaims bought

Securities

Available-forsale securities

Available-forsale securities

Others(i)¥
957

Foreign bonds(ii)¥ 29,482

Total(i) + (ii)

Derivative
financial
instruments
Stock-related¥

30,440

¥

270

(39)

(1,498)(1,538)(1,981)

(20)

298

278

(1,981)(18)(1,797)(1,816)

–

(20)
–
–
897

–
41,912(4,997)64,899(20)
41,912(4,997)65,796

2,262
–
–
550

(20)

298

278

(1,981)*1 Those amounts are included in investment income and investment expenses in the consolidated statement of income.
*2 Those amounts are included in net unrealized gains (losses) on available-for-sale securities, net of tax in other comprehensive
income in the consolidated statement of comprehensive income.
*3 Those amounts are transferred from level 2 to level 3 because of lack of observable data. Those transfers were made at the endof the fiscal year.
*4 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.

Millions of Yen

For the year ended March 31, 2022

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

Monetaryclaims bought

Securities

Available-forsale securities

Available-forsale securities

Others(i)¥
969

Foreign bonds(ii)¥ 26,853

Total(i) + (ii)

Derivative
financial
instruments
Stock-related¥

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

51

9. Consolidated Financial Statements

Millions of U.S. Dollars

For the year ended March 31, 2023

Beginning balance
Gains (losses) and other comprehensive
income for the fiscal year:
Gains (losses) recorded for the fiscal
year*1Other comprehensive income recorded
for the fiscal year*2
Net amount of purchase, sale, issue, andsettlement
Transfer to fair values of Level 3*3
Transfer from fair values of Level 3*4
Ending balance
Net unrealized gains (losses) on financial
assets and liabilities held at the balance
sheet date among the amount recorded
to gains (losses) for the fiscal year*1

Monetaryclaims bought

Securities

Available-forsale securities

Available-forsale securities

Others(i)

Foreign bonds
(ii)
$
220

$

7

Derivative
financial
instruments

Total(i) + (ii)

Stock-related
$

227

$

2

(0)

(11)

(11)

(14)

(0)

2

2

(14)

(0)

(13)

(13)

–

(0)
–
–
6

–
313
(37)
486

(0)
313
(37)
492

16
–
–
4

(0)

2

2

(14)

*1 Those amounts are included in investment income and investment expenses in the consolidated statement of income.
*2 Those amounts are included in net unrealized gains (losses) on available-for-sale securities, net of tax in other comprehensive
income in the consolidated statement of comprehensive income.
*3 Those amounts are transferred from level 2 to level 3 because of lack of observable data. Those transfers were made at the endof the fiscal year.
*4 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 the actuarial andaccounting department and the risk management department. In accordance with these policies
and procedures, the risk management department measures the fair value. The validity of theevaluation methods and inputs used to measure fair value and the appropriateness of categorizationof fair value are verified in the independent division in the risk management department.
In fair value measurement, valuation models in which the nature, characteristics and risks ofindividual assets are most appropriately reflected are used. In addition, when quoted prices
obtained from third parties are used, the validity of the prices is verified by appropriate methods
such as confirmation of evaluation method and used inputs and comparison with the fair values ofsimilar financial instruments.

7. Investments and Rental Properties
The Company holds investment and rental properties such as office buildings in Tokyo and other areas. The
carrying amounts and the fair values of investment and rental properties were ¥237,083 million (US$1,775
million) and ¥287,980 million (US$2,156 million) as of March 31, 2023 and ¥239,331 million and ¥283,478
million as of March 31, 2022, respectively. The fair value is mainly based on the value (including someadjustments using the reference prices) of real estate appraisal report prepared by the external real-estateappraiser in accordance with real estate appraisal standards.

8. Securities Lent under Lending Agreements
The amounts of securities lent under lending agreements were ¥199,653 million (US$1,495 million) and¥218,367 million as of March 31, 2023 and 2022, respectively.

9. Claims
The total amounts of claims against bankrupt and quasi-bankrupt obligors, claims with collection risk,delinquent loans three or more months past due and restructured loans, which were included in claims,
were ¥521 million (US$3 million) and ¥609 million as of March 31, 2023 and 2022, respectively.

52

Asahi Mutual Life Insurance Company Annual Report 2023

9. Consolidated Financial Statementsi)

Claims against bankrupt and quasi-bankrupt obligors were ¥386 million (US$2 million) and ¥453
million as of March 31, 2023 and 2022, respectively.

ii) Claims with collection risk were ¥30 million (US$0 million) and ¥70 million as of March 31, 2023 and2022, respectively.
iii) Delinquent loans three or more months past due were ¥85 million (US$0 million) and ¥66 million asof March 31, 2023 and 2022, respectively.
iv) Restructured loans were ¥20 million (US$0 million) and ¥20 million as of March 31, 2023 and 2022,
respectively.
Claims against bankrupt and quasi-bankrupt obligors are claims to obligors who are subject to bankruptcy,
corporate reorganization or rehabilitation or other similar proceedings and other obligors in serious
financial difficulties.
Claims with collection risk are claims to obligors with deteriorated financial condition and results ofoperations from which it is unlikely that the principal and interest on the claims will be recovered, excluding
those claims classified as claims against bankrupt and quasi-bankrupt obligors.
Delinquent loans three or more months past due are loans for which interest payments or repayments ofprincipal are delinquent for three months or more from the due dates under the terms of the related loan
agreements, excluding those claims classified as claims against bankrupt and quasi-bankrupt obligors andclaims with collection risk.
Restructured loans are loans for which certain concessions favorable to borrowers, such as interest
reduction or exemptions, rescheduling of due dates of principal or interest payments, waivers of claim
or other terms, have been negotiated for the purpose of assisting and supporting the borrowers in the
restructuring of their businesses. This category excludes claims classified as claims against bankrupt andquasi-bankrupt obligors, claims with collection risk and delinquent loans three or more months past due.
The direct write-offs related to claims decreased the amounts of claims against bankrupt and quasibankrupt obligors described above by ¥5 million (US$0 million) and ¥24 million as of March 31, 2023 and2022, respectively.

10. Accumulated Depreciation of Tangible Fixed Assets
Accumulated depreciation of tangible fixed assets totaled ¥282,149 million (US$2,113 million) and ¥286,793
million as of March 31, 2023 and 2022, respectively.

11. Separate Accounts
Total assets in separate accounts provided for in Article 118 of the Insurance Business Act were ¥26,438
million (US$197 million) and ¥28,175 million as of March 31, 2023 and 2022, respectively. The amounts ofseparate account liabilities were the same as separate account assets.

12. Reserve for Dividends to Policyholders
Millions of
U.S. Dollars

Millions of Yen
For the years ended March 31
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

2023
¥

¥

28,644
2,121
3,664
3
27,1032022¥¥

30,050
2,153
3,562
3
28,644

2023
$

$

214
15
27
0
202

13. Stocks of Unconsolidated Subsidiaries and affiliates
The amounts of stocks of unconsolidated subsidiaries and affiliates the Company held as of March 31, 2023
and 2022 were ¥8,131 million (US$60 million) and ¥7,888 million, respectively.

53

9. Consolidated Financial Statements

14. Pledged Assets
Assets pledged as collateral as of March 31, 2023 and 2022 were securities in the amount of ¥3,224 million(US$24 million) and ¥80,591 million, respectively.

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, 2023
and 2022 were ¥26,106 million (US$195 million) and ¥6,391 million, respectively.

16. Redemption of Foundation Funds
The Company redeemed ¥40,000 million (US$299 million) of foundation funds, which is part of ¥80,000
million of foundation funds offered in August 2015, prior to the redemption date. Accompanying theredemption, the Company transferred the same amount from reserve for fund redemption to reserve forredemption of foundation funds in accordance with Article 56 of the Insurance Business Act.

17. Assets with Rights to Sell
The Company has the legal right to sell or collateralize securities borrowed under loan agreements. The
market values of these assets that were not sold or pledged as collateral as of March 31, 2023 and 2022 were¥21,882 million (US$163 million) and ¥25,709 million, respectively. No assets were pledged as collateral asof March 31, 2023 and 2022.

18. Commitment LineAs of March 31, 2023 and 2022, there were unused commitment line agreements under which the Company
is the lender of ¥10,086 million (US$75 million) and ¥13,947 million, respectively.

19. Subordinated Bonds Payable
As of March 31, 2023 and 2022, bonds payable are subordinated bonds payable, for which the repayments
are subordinated to other obligations.

20. Subordinated Loans Payable
As of March 31, 2023 and 2022, other liabilities included subordinated loans payable of ¥49,000 million(US$366 million) and ¥41,000 million, respectively, for which the repayments are subordinated to otherobligations.

21. Contributions to Policyholders Protection Corporation
Note for the fiscal year ended March 31, 2022
The estimated future contributions to the Life Insurance Policyholders Protection Corporation of Japan
under Article 259 of the Insurance Business Act as of March 31, 2022 was ¥8,260 million. These contributions
are charged as operating expenses in the fiscal year in which they are paid.

22. Deferred Taxes(1) Deferred tax assets/liabilities were recognized as follows:
Millions of
U.S. Dollars

Millions of Yen
As of March 31
Deferred tax assets
Valuation allowance for deferred tax assets
Subtotal
Deferred tax liabilities
Net deferred tax assets (liabilities)

54

Asahi Mutual Life Insurance Company Annual Report 2023

2023
¥

¥

65,621
14,96050,66041,915
8,745

2022
¥

¥

70,651
15,33255,31958,064(2,745)

2023
$

$

491
112
379
313
65

9. Consolidated Financial Statements

Major components of deferred tax assets/liabilities were as follows:
Millions of Yen

Millions of
U.S. Dollars

2023

2023

As of March 31
Deferred tax assets
Contingency reserve
Reserve for price fluctuation
Net defined benefit liabilities
Impairment losses
IBNR reserves
Tax loss carried forward
Deferred tax liabilities
Net unrealized gains on available-for-sale securities¥

17,930
10,660
8,802
7,356
4,770
3,526

$

134
79
65
55
35
26

37,793

283

Millions of Yen
As of March 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¥

21,797
13,450
9,165
7,223
4,394
3,944
56,417Tax loss carried forward and the deferred tax assets by carry forward period were as follows:
Millions of Yen
2023
As of March 31

Tax loss carried forward
Valuation allowance
Deferred tax assets

Within 1 year
¥

–
–
–

Over 1 to
5 years¥–––

Over 5 years¥

3,526(1,258)
2,268

Total
¥

3,526
(1,258)2,268** The Company considers deferred tax assets recorded for tax loss carried forward to be recoverable as it is expected that there
will be taxable income in the future.

Millions of U.S. Dollars
2023
As of March 31

Tax loss carried forward
Valuation allowance
Deferred tax assets

Within 1 year
$

–
–
–

Over 1 to
5 years$–––

Over 5 years
$

$26
(9)
16

Total
$

26
(9)
16*

* The Company considers deferred tax assets recorded for tax loss carried forward to be recoverable as it is expected that there
will be taxable income in the future.

(2) The statutory tax rates were 27.9% and 27.9% for the fiscal years ended March 31, 2023 and 2022,
respectively. The main factors causing the differences between the statutory tax rates and the actual
effective tax rates after considering deferred taxes were as follows:
For the year ended March 31
Interest on foundation funds
For the year ended March 31
Interest on foundation funds

2023(5.2)%
2022(4.4)%

55

9. Consolidated Financial Statements(3) The Company and part of its subsidiaries have applied the group tax sharing system from the reporting
period ended March 31, 2023. As a result, the Company has applied the “Practical Solution on the
Accounting and Disclosure Under the Group Tax Sharing System” (ASBJ PITF No.42, issued on August
12, 2021) to the accounting and disclosure treatment of corporate tax, local corporate tax and tax
effect accounting.

23. Accrued Retirement Benefits and Net Defined Benefit Liabilities(1) Summary of retirement benefit plans
As defined benefit plan, the Company and its consolidated subsidiaries have defined benefit corporate
pension plans, which are funded-type, and lump-sum retirement allowance plans which are non-fundedtype but resulted in funded type due to setting of employee pension trust.
(2) Defined benefit plani)

Reconciliation of beginning and ending balance of retirement benefit obligations
Millions of
U.S. Dollars

Millions of Yen
For the years ended March 31
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

2023

2022

2023

¥

40,397
1,864
398
597
(3,720)¥41,202
1,889
407
520
(3,622)

$

302
13
2
4
(27)

¥

39,538¥40,397$296ii) Reconciliation of beginning and ending balance of pension plan assets
Millions of
U.S. Dollars

Millions of Yen
For the years ended March 31
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

2023
¥

¥

8,069
79
149
243
(131)
8,411

2022
¥

8,782
80
(818)
242
(217)
8,069

¥

2023
$

60
0
1
1
(0)
62

$

iii) Reconciliation of retirement benefit obligation and pension plan assets with net defined benefit
liabilities and assets presented on the consolidated balance sheets
Millions of
U.S. Dollars

Millions of Yen
As of March 31
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

56

Asahi Mutual Life Insurance Company Annual Report 2023

2023¥

39,538(8,411)

2022¥

31,12731,548(421)¥

31,12740,397(8,069)2023$

32,32732,852(524)¥

32,327

296
(62)
233
236
(3)

$

233

9. Consolidated Financial Statementsiv) Breakdown of retirement benefit expenses
Millions of
U.S. Dollars

Millions of Yen
For the years ended March 31
Service cost
Interest cost
Expected return on pension plan assets
Amortization of actuarial differences
Retirement benefit expenses related to defined
benefit plan

2023

2022

2023

¥

1,864
398
(79)
409

¥

1,889
407
(80)
329

$

13
2
(0)
3

¥

2,593

¥

2,545

$

19

v) Breakdown of items included in other comprehensive income
The breakdown of items included in other comprehensive income (before tax effects) was asfollows:
Millions of
U.S. Dollars

Millions of Yen
For the years ended March 31
Amortization of actuarial differences
Total

2023

2022

¥
¥

(38)
(38)

¥
¥

2023

(1,010)(1,010)

$
$

(0)
(0)

vi) Breakdown of items included in accumulated other comprehensive income
The breakdown of items included in total accumulated other comprehensive income (before tax
effects) was as follows:
Millions of
U.S. Dollars

Millions of Yen
For the years ended March 31
Unrecognized actuarial differences
Total

2023
¥
¥

2022

2,924
2,924

¥
¥

2023

2,885
2,885

$
$

21
21

vii) Breakdown of main pension plan assets
The breakdown of main asset categories as a percentage of pension plan assets was as follows:
As of March 31
Stocks
Bonds
Others
Total

2023

2022

38%
19%
43%
100%

36%
18%
46%
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, the Company takes into
account the present and future allocation of pension plan assets, and the present and expected
future long-term rate of return on the diverse range of assets that makes up the pension assets.
ix) Underlying actuarial assumptions
The main underlying actuarial assumptions were as follows:
As of March 31
Discount rate
Expected long-term rate of return on pension plan
assetsDefined benefit corporate pension plans

2023

2022
1.0%

1.0%

0.8%
1.6%

0.8%
1.6%

57

9. Consolidated Financial Statements

24. Subsequent Events
Note for the fiscal year ended March 31, 2022
The Company resolved to redeem ¥40,000 million of foundation funds, which is part of ¥80,000 million offoundation funds offered in August 2015, on August 1, 2022, prior to the redemption date, at the meetingof Board of Directors on May 19, 2022. Accompanying the redemption, the same amount is scheduled
to be transferred from reserve for fund redemption to reserve for redemption of foundation funds inaccordance with Article 56 of the Insurance Business Act.

III. Notes to Consolidated Statements of Income
1. Investment Income and Expenses
The major components of gains on sales of securities were as follows:
Millions of
U.S. Dollars

Millions of Yen
For the years ended March 31
Domestic bonds
Domestic stocks and other securities
Foreign securities

2023
¥

2022

6,720
1,492
7,904

¥

2023

4,943
6,239
767

$

50
11
59

The major components of losses on sales of securities were as follows:
Millions of
U.S. Dollars

Millions of Yen
For the years ended March 31
Domestic bonds
Domestic stocks and other securities
Foreign securities

2023
¥

2022

3,752
1,987
19,785

¥

2023

1,073
1,448
8,655

$

28
14
148

The major components of losses on valuation of securities were as follows:
Millions of
U.S. Dollars

Millions of Yen
For the years ended March 31
Domestic stocks and other securities
Foreign securities

2023
¥

2022
108
5

¥

2023
272
1

$

0
0

Losses on derivative financial instruments included net valuation losses of ¥4,761 million (US$35 million) for
the fiscal year ended March 31, 2023.
Note for the fiscal year ended March 31, 2022
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, 2023 and 2022 were ¥25,849 million (US193 million) and ¥6,989 million, respectively, which were
included in reinsurance revenue among premium and other income.
The decreased amount of unamortized ceding commissions for reinsurance contracts stipulated in Article
1, Paragraph 5 of the Japanese Ministry of Finance Public Notice No. 50, 1996 for the fiscal year ended
March 31, 2023 and 2022 were ¥6,135 million (US$45 million) and ¥597 million, respectively, which were
included in reinsurance premiums among claims and other payments.

58

Asahi Mutual Life Insurance Company Annual Report 2023

9. Consolidated Financial Statements

3. Impairment Losses of Fixed Assets
For the fiscal years ended March 31, 2023 and 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 theconsolidated balance sheets.
(2) Background information on recognizing the impairment losses
As the profitability of certain real estate for rent dropped down significantly due to a decrease in thelevel of rental income and a declining trend in the market prices of land, the Company reduced thebook values of such real estate for rent, real estate not in use and real estate scheduled to be sold totheir recoverable amounts. The write-downs were recognized as impairment losses and included in theextraordinary losses.
(3) Asset groups for which impairment losses were recognized and losses by classification of fixed assets
Millions of
U.S. Dollars

Millions of Yen
For the years ended March 31
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)

2023
¥

¥

2022
–
–
–

¥

2023
–
–
–

$

–
–
–

552
1,683
2,235

622
526
1,149

4
12
16

701
351
1,053

–
–
–

5
2
7

1,254
2,035
3,289

622
526
1,149

9
15
24

¥

$

(4) Calculation method of recoverable amounts
The recoverable amounts of real estate for rent are determined at net realizable value or value in use.
The recoverable amounts for real estate not in use and real estate scheduled to be sold are net realizablevalue. Value in use is determined as the estimated net future cash flows, reflecting the volatility risk,
discounted at 3.3% and 3.3% for the fiscal years ended March 31, 2023 and 2022, respectively. 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.

59

9. Consolidated Financial Statements

IV. Notes to Consolidated Statements of Comprehensive Income
Other Comprehensive Income
The reclassification adjustments and tax effect amounts related to other comprehensive income were as
follows:
Millions of
U.S. Dollars

Millions of Yen
For the years ended March 31
Net unrealized gains on available-for-sale securities, net of tax
Amount incurred during the fiscal year
Reclassification adjustments
Before tax adjustment
Tax effects
Net unrealized gains on available-for-sale securities, netof taxAccumulated 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

2023
¥

¥

(69,449)
8,708(60,740)
17,4702022¥(53,451)(530)(53,982)
14,719

2023
$

(520)
65
(454)
130

(43,270)(39,263)

(324)

(447)
409
(38)
12
(26)
(43,296)(1,339)329(1,010)282(728)(39,991)

(3)
3
(0)
0
(0)
(324)

¥

$

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

The consolidated financial statements in this annual report have been audited by Ernst & Young ShinNihon LLC, an independentcertified public accountant.

60

Asahi Mutual Life Insurance Company Annual Report 2023

10. Non-consolidated Financial Statements
Non-consolidated Balance Sheets
Asahi Mutual Life Insurance Company
Millions of
U.S. Dollars

Millions of Yen
As of March 31
ASSETS:Cash and deposits:
Cash
Deposits

2023¥

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

16
41,656
41,673
166,000
20,2922022¥

20
35,83235,852
111,000
22,534

2023

$

0
311
312
1,243
151

1,693,184
50,610865,936
507,674
1,088,201
98,181
4,303,789

1,669,691
50,540907,641
472,584
1,395,647
69,731
4,565,837

12,680
379
6,484
3,801
8,149
735
32,23030,254
273,707
303,961

32,199279,217
311,416

226
2,049
2,276

212,541
141,781
1,360
1,062
2,748
359,493

216,027
146,310
2,194
1,175
2,841
368,550

1,591
1,061
10
7
20
2,692

19,813
13,68333,4976687

18,928
9,815
28,743
11
393

148
102
250
0
5

14,406
3,385
18,292
2,791
5,879
2,473
1,355
1,641
50,226
424
5,690
600
(648)
5,285,695

22,7783,517
20,077
3,044
960
7,513
861
1,300
60,054
318
–
–
(550)
5,504,161

107
25
136
20
44
18
10
12
376
3
42
4
(4)
39,584¥$61

10. Non-consolidated Financial Statements

Millions of
U.S. Dollars

Millions of Yen
As of March 31
LIABILITIES:Policy reserves and other reserves:
Reserve for outstanding claims
Policy reserves
Reserve for dividends to policyholders

2023

¥

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)
Subtotal
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

62

Asahi Mutual Life Insurance Company Annual Report 2023

¥

2022

34,5134,269,904
27,1034,331,522
700
150,555¥2023

32,0184,365,068
28,644
4,425,731
752
102,424$258
31,977
202
32,4385
1,127

182,247
49,000
133
6,048
8,202
366
494
17,47315,084
9,039
1,360
967
148
290,565
28,727
38,210–15,062600
4,855,944

179,548
41,0004,474
27,340
7,639
202
415
17,83190,445
3,791
2,194
914
140
375,938
29,847
48,2103,622
15,711–
5,002,238

1,364
366
0
45
61
2
3
130
112
67
10
7
1
2,176
215
286
–
112
4
36,36551,000206,000
281

91,000166,000
281

381
1,542
2

366

347

2

22,6007,093
60,14889,841
90,207
347,489

53,5006,983
56,614
117,097
117,444374,726

169
53
450
672
675
2,602

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

173,936(46,739)
127,197
501,923
5,504,161

978
(362)
616
3,218
39,584¥$

10. Non-consolidated Financial Statements

Non-consolidated Statements of Income
Asahi Mutual Life Insurance Company
Millions of
U.S. Dollars

Millions of Yen
For the years ended March 31
Ordinary income:Premium and other income:Insurance premiums
Reinsurance revenue
Investment income:Interest, dividends and other income:Interest and dividends on securities
Interest on loans
Rent revenue from real estate
Other interest and dividends
Gains on sales of securities
Gains on redemption of securities
Foreign exchange gains
Other investment income
Investment gains on separate accounts
Other ordinary income:Fund receipt from deposit of claims paid
Reversal of reserve for employees' retirement benefits
Reversal of policy reserves
Other ordinary income
Total 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
Total ordinary expenses
Ordinary profit

2023

¥

377,409
1,813
379,2232022¥

385,691
1,443
387,134

2023

$

2,826
13
2,839

96,416
4,964
16,180868
118,430
16,115
98
1,912
7,167
429
144,154

99,054
4,241
16,339895
120,531
11,949
317
3,065
6,919
2,199
144,983

722
37
121
6
886
120
0
14
53
3
1,079

7,536
1,119
95,163
2,314
106,134
629,512

8,135
1,008
54,3042,343
65,792597,910

56
8
712
17
794
4,714

110,749
112,411
94,53081,7552,426
2,522
404,395

107,517
116,767
72,93879,2362,403
2,602
381,466

829
841
707
612
18
18
3,028

2,494
3
2,498

3,446
3
3,449

18
0
18

3,986
–
25,525114
466
18,82699
5,565
10,31364,899106,088

4,876
1,133
11,177
273
48
2,510
141
5,511
10,981
36,655
110,388

29
–
191
0
3
140
0
41
77
486
794

10,019
9,197
12,2992,466
33,982
611,863
17,6489,859
9,345
12,354
2,086
33,646565,605
32,305

75
68
92
18
254
4,582
132

63

10. Non-consolidated Financial Statements

Millions of
U.S. Dollars

Millions of Yen
For the years ended March 31

2023

Extraordinary gains:
Gains on disposal of fixed assets
Reversal of reserve for price fluctuation
Other extraordinary gains
Extraordinary losses:
Losses on disposal of fixed assets
Impairment losses
Provision for reserve for price fluctuation
Other extraordinary losses
Surplus before income taxes
Income taxes:
Current
Deferred
Total income taxes
Net surplus

64

Asahi Mutual Life Insurance Company Annual Report 2023

¥

2022

2023

1,889
10,000–11,889

2,925
–
3
2,928

14
74
–
89

2,738
3,289
–
44
6,072
23,464

2,751
1,149
2,530
130
6,561
28,671

20
24
–
0
45
175

(1,300)7,507
6,207
17,257

10,788(5,041)
5,747
22,924

(9)
56
46
129

¥

$

10. Non-consolidated Financial Statements

Non-consolidated Statements of Changes in Net Assets
Asahi Mutual Life Insurance Company
Millions of Yen
Foundation funds and others
Surplus
For the year ended
March 31, 2023

Beginning balance

Reserve forredemption Reserve
Foundation
Reserve
of
for
funds
foundation revaluation for future
lossesfunds¥ 91,000 ¥ 166,000 ¥Changes in the fiscal year:
Additions to reserve for dividends topolicyholders
Additions to reserve for future losses
Additions to reserve for redemptionof foundation funds
Payment of interest on foundation
funds
Net surplus
Redemption of foundation funds
Additions to reserve for fundredemption
Additions to equalized reserve fordividends to policyholders
Reversal of land revaluationdifferences
Net changes, excluding foundation
funds and others
Net changes in the fiscal year
Ending balance

281 ¥

Total
foundation
Equalized
Total
funds andReserve
reserve for Unappropriated surplus
othersfor funddividends to surplus (loss)
redemption
policyholders
Other surplus

347 ¥ 53,500 ¥

6,983 ¥ 56,614 ¥117,444 ¥374,726(2,121)(19)

19
40,000(40,000)(2,121)(2,121)(40,000)(4,040)17,257(4,040)17,257(40,000)(4,040)17,257(40,000)

9,100(9,100)
110

(110)
1,666

(40,000) 40,000¥ 51,000 ¥206,000 ¥

–
281 ¥

19 (30,900)
366 ¥ 22,600 ¥

1,666

1,666

110
3,533 (27,237) (27,237)
7,093 ¥ 60,148 ¥ 90,207 ¥347,489

Millions of Yen
Valuation and translation adjustments
For the year ended
March 31, 2023

Beginning balance

Net unrealized
gains (losses) on
available-for-salesecurities, net of tax

Land revaluationdifferences

Total valuationand translation
adjustments

Total net assets

¥

¥

¥

¥

173,936(46,739)

127,197

Changes in the fiscal year:
Additions to reserve for dividends topolicyholders
Additions to reserve for future losses
Additions to reserve for redemption offoundation funds
Payment of interest on foundation funds
Net surplus(2,121)(4,040)17,257

Redemption of foundation funds
Additions to reserve for fund redemption
Additions to equalized reserve for dividends topolicyholders
Reversal of land revaluation differences
Net changes, excluding foundation funds andothersNet changes in the fiscal year
Ending balance

501,923(40,000)

1,666¥(43,268)(43,268)
130,668¥(1,666)(1,666)(48,406)¥(44,935)(44,935)
82,261¥(44,935)(72,172)
429,75165

10. Non-consolidated Financial Statements

Millions of Yen
Foundation funds and others
Surplus
For the year ended
March 31, 2022

Beginning balance

Reserve forredemption Reserve
Foundation
Reserve
of
for
funds
foundation revaluation for future
lossesfunds¥ 91,000 ¥ 166,000 ¥Changes in the fiscal year:
Additions to reserve for dividends topolicyholders
Additions to reserve for future losses
Payment of interest on foundation
funds
Net surplus
Additions to reserve for fundredemption
Reversal of equalized reserve fordividends to policyholders
Reversal of land revaluationdifferences
Net changes, excluding foundation
funds and others
Net changes in the fiscal year––
Ending balance¥ 91,000 ¥166,000 ¥

281 ¥

Total
foundation
Equalized
Total
funds andReserve
reserve for Unappropriated surplus
othersfor funddividends to surplus (loss)
redemption
policyholders
Other surplus

328 ¥ 44,400 ¥

7,091 ¥ 47,558 ¥ 99,378 ¥356,660

19

9,100

(2,153)(19)(2,153)(2,153)(4,089)22,924(4,089)22,924(4,089)22,924

1,384

1,384

(9,100)
(108)

108
1,384

–
281 ¥

19
9,100
347 ¥ 53,500 ¥

(108)
9,055
18,066
18,066
6,983 ¥ 56,614 ¥117,444 ¥374,726

Millions of Yen
Valuation and translation adjustments
For the year ended
March 31, 2022

Beginning balance
Changes in the fiscal year:
Additions to reserve for dividends topolicyholders
Additions to reserve for future losses
Payment of interest on foundation funds
Net surplus
Additions to reserve for fund redemption
Reversal of equalized reserve for dividends topolicyholders
Reversal of land revaluation differences
Net changes, excluding foundation funds andothersNet changes in the fiscal year
Ending balance

66

Asahi Mutual Life Insurance Company Annual Report 2023

Net unrealized
gains (losses) on
available-for-salesecurities, net of tax

Land revaluationdifferences

Total valuationand translation
adjustments

Total net assets

¥

¥

¥

¥

213,200(45,354)

167,845524,505(2,153)(4,089)22,924

1,384¥(39,264)(39,264)
173,936¥(1,384)(1,384)(46,739)¥(40,648)(40,648)
127,197¥(40,648)(22,582)
501,923

10. Non-consolidated Financial Statements

Millions of U.S. Dollars
Foundation funds and others
Surplus
For the year ended
March 31, 2023

Beginning balance

Reserve forredemption Reserve
Foundation
Reserve
of
for
funds
foundation revaluation for future
lossesfunds$

Changes in the fiscal year:
Additions to reserve for dividends topolicyholders
Additions to reserve for future losses
Additions to reserve for redemptionof foundation funds
Payment of interest on foundation
funds
Net surplus
Redemption of foundation funds
Additions to reserve for fundredemption
Additions to equalized reserve fordividends to policyholders
Reversal of land revaluationdifferences
Net changes, excluding foundation
funds and others
Net changes in the fiscal year
Ending balance
$

681 $

1,243 $

2$

Total
foundation
Equalized
Total
funds andReserve
reserve for Unappropriated surplus
othersfor funddividends to surplus (loss)
redemption
policyholders

2 $Other surplus

400 $

52 $

0
299

423 $

879 $

(15)
(0)

(15)

(299)

(30)
129

(30)
129
(299)

12

12

12

26
450 $

(203)
675 $

(203)
2,602

(299)
68

(68)
0

299
1,542 $

–
2$

0
2 $

(15)

(299)
(30)
129

(299)
381 $

2,806

(231)
169 $

(0)
53 $

(0)

Millions of U.S. Dollars
Valuation and translation adjustments
For the year ended
March 31, 2023

Beginning balance
Changes in the fiscal year:
Additions to reserve for dividends topolicyholders
Additions to reserve for future losses
Additions to reserve for redemption offoundation funds
Payment of interest on foundation funds
Net surplus
Redemption of foundation funds
Additions to reserve for fund redemption
Additions to equalized reserve for dividends topolicyholders
Reversal of land revaluation differences
Net changes, excluding foundation funds andothersNet changes in the fiscal year
Ending balance

Net unrealized
gains (losses) on
available-for-salesecurities, net of tax

Land revaluationdifferences

Total valuationand translation
adjustments

Total net assets

$

$

$

$

1,302

(350)

952

3,758

(15)

(30)
129
(299)

12

$

(324)
(324)
978

$

(12)
(12)
(362)

$

(336)
(336)
616

$

(336)
(540)
3,218

67

10. Non-consolidated Financial Statements

Non-consolidated Statements of Proposed Appropriation of Surplus(Loss)
Asahi Mutual Life Insurance Company
Millions of
U.S. Dollars

Millions of Yen
For the years ended March 31
Unappropriated surplus (loss)
Reversal of Voluntary surplus reserves:
Reversal of equalized reserve for dividends to policyholders
Total
Appropriation of surplus (loss):Reserve for dividends to policyholders
Net surplus (loss):Reserve for future losses
Interest on foundation funds
Voluntary surplus reserves:
Reserve for fund redemption
Equalized reserve for dividends to policyholders
Surplus (loss) carried forward

68

Asahi Mutual Life Insurance Company Annual Report 2023

2023
¥

¥

60,148199
199
60,34813,935
2,497
11,438
15
2,323
9,100
9,100
–
46,4122022¥¥

56,614––56,614
15,3902,121
13,269
19
4,040
9,210
9,100
110
41,223

2023
$

$

450
1
1
451
104
18
85
0
17
68
68
–
347

10. Non-consolidated Financial Statements

Notes to Non-consolidated Financial Statements
Asahi Mutual Life Insurance Company

I. Presentation of Non-consolidated Financial Statements
1. 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 the provisions
set forth in the Insurance Business Act of Japan and its related rules and regulations applicable to themutual life insurance industry and in conformity with accounting principles generally accepted in Japan,
which are different in certain respects from accounting principles generally accepted in countries andjurisdictions other than Japan.
In addition, the notes to the 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 thepresented financial statements for use by readers outside Japan.
In preparing the accompanying non-consolidated financial statements, certain reclassifications have been
made to the non-consolidated financial statements issued domestically in order to present them in aformat which is more familiar to readers outside Japan.

2. U.S. Dollar Amounts
The translations of yen amounts into U.S. dollar amounts are included solely for the convenience of thereader and have been made, as a matter of arithmetical computation only, at the rate of ¥133.53 = US$1.00,
the effective rate of exchange at the balance sheet date of March 31, 2023.
The translations should not be construed as representations that such yen amounts have been or could in
the future be, converted into U.S. dollars at that or any other rate.

II. Notes to Non-consolidated Balance Sheets
1. Significant Accounting Policies(1) Valuation methods of securities
The valuation of securities, including deposits and monetary claims bought which are equivalent tosecurities is as follows:i)

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

ii) Held-to-maturity debt securities are stated at amortized cost (straight-line method) determined by
the moving average method.
iii) Policy-reserve-matching bonds, which are in accordance with “Temporary Treatment of Accounting
and Auditing Concerning Policy-reserve-matching Bonds in Insurance Industry” (Industry Audit
Committee Report No. 21 issued by the Japanese Institute of Certified Public Accountants(“JICPA”)), are stated at amortized cost (straight-line method) determined by the moving averagemethod.
iv) Investments in subsidiaries and affiliates are stated at cost.
v) Available-for-sale securities except for the following are stated at fair market value based on themarket prices at the balance sheet date, of which costs of sales are determined by the moving

69

10. Non-consolidated Financial Statements

average method. Available-for-sale securities, of which public and corporate bonds including foreign
bonds with the difference between acquisition cost and face value considered as an adjustment
of interest, are stated at amortized cost (straight-line method) determined by the moving averagemethod. 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 policy-reserve-matching bonds in accordancewith “Temporary Treatment of Accounting and Auditing Concerning Policy-reserve-matching Bonds inInsurance Industry” (Industry Audit Committee Report No. 21 issued by the JICPA).
Note for the fiscal year ended March 31, 2022
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 policy-reserve-matching bonds in accordancewith “Temporary Treatment of Accounting and Auditing Concerning Policy-reserve-matching Bonds inInsurance 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 thepremise 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 withvariable interest rates and New Single Premium Individual Annuity effective on and after April 2, 2012).
This change did not have any effects on the non-consolidated balance sheet and non-consolidated
statement of income 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 of Land (ActNo. 34 promulgated on March 31, 1998). The difference between fair value and book 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 is recorded as deferred tax liabilities for revaluation.
■ Date of revaluation: March 31, 2001
■ Method of revaluation as prescribed for in Article 3, Paragraph 3 of the said Act:The calculation is based on the publicly announced appraisal value with certain adjustments set forthin 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 thereal-estate appraiser set forth in Article 2, Item 5 of the said Ordinance with certain reasonableadjustments.
(5) Depreciation of tangible fixed assets
Depreciation of the Companyʼs 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 are translated into Japanese yen at the effective
exchange rate prevailing at the balance sheet date.

70

Asahi Mutual Life Insurance Company Annual Report 2023

10. Non-consolidated Financial Statements(7) Allowance for possible loan losses
Allowance for possible loan losses is provided in accordance with the Companyʼs standards of selfassessment and write-offs and reserves on credit quality:i)

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

ii) For credit to borrowers who are not currently bankrupt but have a high risk of bankruptcy (hereinafter“borrowers with high possibility of bankruptcy”), the Company provides the amounts deemed asnecessary considering the borrowersʼ ability to pay, within the amounts after deductions of theamount expected to be collected through the disposal of collateral or the execution of guarantees.
iii) For credit to borrowers other than the above, the Company provides the amounts calculated bymultiplying the book value by the actual ratio of bad debt losses on defaults during a certain past
period.
All credit is assessed by the relevant departments in accordance with the Companyʼs standards ofself-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 isprovided based on the results of these assessments.
For credit to legally bankrupt borrowers and substantially bankrupt borrowers, the amounts remaining
after deductions of collateral value or the amounts collectible through the execution of guarantees are
written-off directly from the book value as the estimated uncollectible amounts. The amounts writtenoff were ¥5 million (US$0 million) and ¥24 million as of March 31, 2023 and 2022, respectively.
(8) Accounting for employeesʼ retirement benefits and method of amortizing retirement benefit expenses
Reserve for employeesʼ retirement benefits and prepaid pension cost are presented for the employeesʼ
retirement benefits based on projected benefit obligation and pension plan assets at the balance
sheet date.
The Company uses the following methods of accounting in relation to retirement benefits.
■ The retirement benefit obligation is attributed to each period by the benefit formula method.
■ Actuarial differences are amortized under the straight-line method over a period of six years starting
the following year.
■ Prior service cost is charged to income when incurred.
Previously, actuarial differences were amortized under the straight-line method over a period of sevenyears. This period has been shortened to six years effective from the fiscal year ended March 31, 2023,
since the average remaining working lives of the employees have fallen below seven years.
The impact of this change on ordinary profit and surplus before income taxes for the fiscal year ended
March 31, 2023 is immaterial.
Note for the fiscal year ended March 31, 2022
Reserve for employeesʼ retirement benefits and prepaid pension cost are presented for the employeesʼ
retirement benefits based on projected benefit obligation and pension plan assets at the balance
sheet date.
The Company uses the following methods of accounting in relation to retirement benefits.
■ The retirement benefit obligation is attributed to each period by the benefit formula method.
■ Actuarial differences are amortized under the straight-line method over a period of seven years
starting the following year.
■ Prior service cost is charged to income when incurred.
(9) Reserve for price fluctuation
Reserve for price fluctuation is calculated in accordance with Article 115 of the Insurance Business Act.

71

10. Non-consolidated Financial Statements(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 (“Tokureishori”) for interest rate swaps used to hedge the cash flow volatility of certain loans.
The Company also applies fair value hedge accounting for hedging activities related to foreignexchange rate fluctuation exposures on certain bonds, investment trusts and others denominated inforeign currencies.
The Company also applies designated hedge accounting (“Furiate-shori”) for currency swaps used
to hedge foreign exchange rate fluctuation exposures on the foreign currency-denominated bonds
issued by the Company.
The Company also applies designated hedge accounting (“Furiate-shori”) for the foreign currencydenominated transactions other than the above.
The effectiveness of a hedge is mostly assessed by a ratio analysis, comparing the fluctuations in thefair 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 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 whenincurred.
(12) Premium and other income (excluding reinsurance revenue)
Premium and other income (excluding reinsurance revenue) are recorded in principle for insurance
policies for which insurance premium has been received and the insurerʼs liability under the insurance
policies or insurance coverage period has commenced by the relevant amounts received.
Of insurance premiums, the portion corresponding to the period that has yet to pass as of the end of
the fiscal year is set aside as policy reserves in accordance with Article 116 of the Insurance BusinessAct and Article 69, Paragraph 1, Item 2 of the Enforcement Regulation of the Insurance Business Act.
(13) Claims and other payments (excluding reinsurance premiums)
Claims and other payments (excluding reinsurance premiums) are recorded for insurance policies forwhich amounts calculated under policy conditions have been paid in the occurrence of insured events
under the policy conditions.
In accordance with Article 117 of the Insurance Business Act and Article 72 of the Enforcement
Regulation of the Insurance Business Act, reserve for outstanding claims is set aside for claims, etc.
which is not recorded as payment of claims, etc. but for which the Company has payment obligationor 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.
With respect to reserve for outstanding claims incurred but not reported events (referring to claims
for which the occurrence of the insured events has not been reported but the Company finds that
insured events have already occurred; hereinafter the same), the scope of payment of hospitalization
benefits was changed in the fiscal year ended March 31, 2023 with regard to people with diagnoses of
COVID-19 given and under the care of a doctor and the like at an accommodation facility or at home(“deemed hospitalizations”). As a result of this change, an appropriate amount of reserves cannot
be obtained with the calculation method set forth in the main rules in Article 1, Paragraph 1 of theJapanese Ministry of Finance Public Notice No.234, 1998 (“IBNR Notice”). The Company therefore
records the amount that was calculated using the following method, pursuant to provisions in theproviso of Article 1, Paragraph 1 of IBNR Notice (the “Proviso”).

72

Asahi Mutual Life Insurance Company Annual Report 2023

10. Non-consolidated Financial Statements(Overview of the calculation method)
The Company calculates the reserve for outstanding claims incurred but not reported events for
deemed hospitalizations and the others separately.
The amount of reserve for outstanding claims incurred but not reported events other than deemedhospitalizations is calculated using the same manner as that set forth in the main rules in Article 1,
Paragraph 1 of IBNR Notice, excluding the amount related to deemed hospitalizations from a required
amount of reserves for incurred but not reported events and the amount of claim payments for all thefiscal years, as set forth in the main rules in Article 1, Paragraph 1 of IBNR Notice.
The amount of reserve for outstanding claims incurred but not reported events for deemedhospitalizations is calculated based on the amount for deemed hospitalizations of those at high riskof serious illness after September 26, 2022, the number of new infections and the number of new
infections over the last three months, considering the average days it takes from the occurrence of theinsured events to the filing of claims.
Note for the fiscal year ended March 31, 2022
Claims and other payments (excluding reinsurance premiums) are recorded for insurance policies forwhich amounts calculated under policy conditions have been paid in the occurrence of insured events
under the policy conditions 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 the Company has payment obligationor 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 the statement ofcalculation procedures for insurance premiums and policy reserves (Article 4, Paragraph 2, Item 4 of
the Insurance Business Act) pursuant to Article 116, Paragraph 1 of the Insurance Business Act, forinsurance policies under which the insurerʼs 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 the following
method:In regard to the policies subject to the standard policy reserves, the method as prescribed by theCommissioner of Financial Services Agency (Japanese Ministry of Finance Public Notice No. 48, 1996)
is applied.
In regard to the policies not subject to the standard policy reserves, the net level premium method isapplied.
Regarding policy reserves, the chief actuary checks that policy reserves are appropriately accumulated
in each fiscal year, pursuant to Article 121, Paragraph 1 of the Insurance Business Act and Article 80 of
the Enforcement Regulation of the Insurance Business Act.
Contingency reserves included in policy reserves are set aside in accordance with Article 116 of the
Insurance Business Act and Article 69, Paragraph 1, Item 3 of the Enforcement Regulation of the
Insurance Business Act to cover risks that may accrue in the future in order to ensure the performanceof future obligations under insurance policies.
(15) Impairment losses of tangible fixed assets
Impairment losses of the Companyʼs tangible fixed assets are calculated by the following method.
i)

Calculation method
Real estate and other assets used for insurance business operations are classified as one asset
group as a whole. Other assets such as real estate for rent, real estate not in use and real estatescheduled to be sold are classified as one group individually. As for real estate used for multiple
purposes, the asset group to which the real estate belongs is decided depending on usage rate
and others.

7310. Non-consolidated Financial Statements

The Company identifies indications of impairment on each asset group when earnings frombusiness operations using the asset group continuously become negative.
As for asset groups for which indications of impairment are identified, when total amounts ofundiscounted net future cash flows from the asset groups are less than their book values, theCompany recognizes impairment losses and reduces the book values to their recoverable amounts.
The recoverable amounts of real estate and other assets for insurance business operation and realestate for rent are determined at value in use or net realizable value. The recoverable amounts ofreal estate not in use and real estate scheduled to be sold are determined at net realizable value.
Value in use is determined as the discounted present value of estimated net future cash flows anddiscount rate used in the calculation is based on the cost of capital of the Company.
Net realizable value is calculated based on the appraisal value in accordance with “Real EstateAppraisal Standards” or the publicly announced appraisal value after deducting expected disposal
costs.
ii) Key assumptions
Key assumptions for the estimated net future cash flows which are used in recognizing impairment
losses and calculating value in use are usage plans considering current status of use of asset
groups, including tenancy rates, rents and others. These assumptions may be affected by economic
condition and changes specific to asset groups.
iii) Effects on non-consolidated financial statements for the following fiscal year
While the Company considers key assumptions for the estimated net future cash flows which areused in recognizing impairment losses and calculating value in use are best estimate based on
available information including external information, impairment losses may occur in the following
fiscal year due to future uncertainties.
Furthermore, the appraisal value in accordance with “Real Estate Appraisal Standards” may beaffected by future real estate market trends. In case that net realizable value decreases as a result,
impairment losses may occur in the following fiscal year.
(16) Software
Capitalized software for internal use owned by the Company is amortized using the straight-line
method over the estimated useful lives.

2. Accounting Changes
The Company has applied “Implementation Guidance on Accounting Standard for Fair Value Measurement”(ASBJ Guidance No. 31, revised on June 17, 2021) from the fiscal year ended March 31, 2023.
In accordance with the transitional treatment set forth in Paragraph 27-2 of Implementation Guidanceon Accounting Standard for Fair Value Measurement, the Company has applied new accounting policies
prospectively. Following this, some investment trusts are categorized into some levels in the following“Note 6. Matters Concerning Fair Value of Major Financial Instruments and Breakdown by Input Level”.
Note for the fiscal year ended March 31, 2022
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 thetransitional treatment set forth in Paragraph 19 of "Accounting Standard for Fair Value Measurement"
and Paragraph 44-2 of "Accounting Standard for Financial Instruments" (ASBJ Statement No.10, July4, 2019), the Company has applied new accounting policies prospectively. As a result, available-for-salesecurities, 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 not applied and foreign currencydenominated 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 date from 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, the Company has used fairvalue based on the average of market prices during the final month of fiscal year as before.

74

Asahi Mutual Life Insurance Company Annual Report 2023

10. Non-consolidated Financial Statements

3. Accounting Standards Issued but Not Yet Effective
Note for the fiscal year ended March 31, 2022
The Company and part of its subsidiaries made a request for approval for the application of the group 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 the Group Tax Sharing System”(ASBJ PITF No.42, issued on August 12, 2021) and its contents are as follows:i)

Overview
The practical solution was issued to stipulate the accounting and disclosure treatment of corporatetax, local corporate tax and tax effect accounting when applying the group tax 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 the consolidated taxation system and transition to thegroup 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 non-consolidated
financial statements.

4. Changes in Reporting Method
Note for the fiscal year ended March 31, 2022
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 with variableinterest rates and new single premium individual annuities which have an effective date on or after
April 2, 2012, the Company mainly invests in domestic bonds, engaging in matching asset liability
management, or Matching ALM, which aims at matching the duration to outstanding insurance
liabilities to avoid interest rate fluctuation risks.
■ For individual life insurance and individual annuities other than above, the Company holds yendenominated fixed income investments, including bonds and loans, as the core of its asset portfolio.
The Company also holds domestic stocks, foreign securities and real estate assets to enhance its
profitability.
Derivatives are mainly used to hedge market price fluctuation risk and exchange rate fluctuation risk
regarding securities and exchange rate fluctuation risk related to the foreign currency-denominated bonds
issued by the Company. As the major financial instruments, securities are exposed to market risk and credit
risk, loans are exposed to credit risk and exchange rate fluctuation risk, and derivatives are exposed tomarket risk and credit risk.
In managing market risks, the following two methods are used. One is the quantitative risk managementof 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 Companyʼs whole portfolio, simulating scenarios ofdeteriorating market environments. This is for the purpose of managing an appropriate asset allocation
within the ranges of acceptable risks.
In managing credit risks, the Company quantifies the credit risks of entire portfolio through VaR method
and controls the amount of risks within an acceptable range. Furthermore, the Company assigns in-house75

10. Non-consolidated Financial Statements

credit ratings to our borrowers in accordance with the creditworthiness of each borrower. Strict credit
research of each borrower before lending as well as following up on any changes of creditworthiness ofeach 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 borrowerin accordance with its credit risks to avoid the concentration of credit risks on specific corporations andspecific 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 andliabilities as of March 31, 2023 were as follows. The following table does not include cash and deposits, callloans and payables under securities borrowing transactions which are mostly settled in a short term andtheir fair values approximate their book values.
Millions of Yen
2023
As of March 31
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¥Fair Value

20,292
19,395897
4,175,083
26,198269,436
2,093,763
1,785,683
303,961
30,254
273,7074,499,337
150,555
49,000199,555(9,204)(1,807)(7,397)¥22,187
21,290897
4,212,239
26,198291,147
2,109,209
1,785,683
310,838
30,254
280,583
4,545,265
147,092
50,490
197,583(9,204)(1,807)(7,397)

Difference
¥

1,894
1,894
–
37,156–
21,711
15,445
–
6,876
–
6,876
45,927(3,462)
1,490(1,972)–––* Assets and liabilities generated by derivative financial instruments are offset and presented net. Net liabilities in total are presented
in parentheses.

Millions of U.S. Dollars
2023
As of March 31
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$151
145
6
31,267196
2,017
15,68013,372
2,276
226
2,049
33,695
1,127
366
1,494
(68)
(13)
(55)

Fair Value
$

166
159
6
31,545196
2,180
15,795
13,372
2,327
226
2,101
34,039
1,101
378
1,479
(68)
(13)
(55)

Difference
$

14
14
–
278
–
162
115
–
51
–
51
343
(25)
11
(14)
–
–
–

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

76

Asahi Mutual Life Insurance Company Annual Report 2023

10. Non-consolidated Financial Statements

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 ¥75,767 million (US$567
million) as of March 31, 2023.
Investment trusts which are accounted for in accordance with Paragraph 24-3 and 24-9 of “Implementation
Guidance on Accounting Standard for Fair Value Measurement” are included in the table above.
Investments in partnerships and others which are accounted for in accordance with Paragraph 24-16 of“Implementation Guidance on Accounting Standard for Fair Value Measurement” are not included in thetable above. The amount of the investments in partnerships and others, reported in the non-consolidatedbalance sheet was ¥52,939 million (US$396 million) as of March 31, 2023.
Note for the fiscal year ended March 31, 2022
The balance sheet amounts, fair values and the differences between those of major financial assets andliabilities as of March 31, 2022 were as follows. The following table does not include cash and deposits, callloans and payables under securities borrowing transactions which are mostly settled in a short term andtheir fair values approximate their book values.
Millions of Yen
2022
As of March 31
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
4,470,179
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)

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 in accordance 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 the table above. The amount of the investmentsin partnerships and others, reported in the non-consolidated balance sheet was ¥44,012 million as ofMarch 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 accordance with theobservability and significance of the inputs used to measure the fair value.
Level 1: Fair values measured by unadjusted quoted prices in active markets for identical assets or liabilities
Level 2: Fair values measured by inputs which are directly or indirectly observable other than Level 1 inputs

7710. Non-consolidated Financial Statements

Level 3: Fair values measured by significant unobservable inputs
When several inputs that have significant impact on fair value measurement are used and those inputs
are categorized into different levels, the fair value is categorized into the lowest priority level for fair value
measurement among the levels to which each of the inputs belongs.
(1) Financial assets and liabilities recorded at fair values on the non-consolidated balance sheets
Millions of Yen
2023
As of March 31

Fair Value
Level 1

Monetary claims bought
Available-for-sale securities
Securities*1
Trading securities
OthersAvailable-for-sale securities
National government bonds and local
government bonds
Corporate bonds
Domestic stocks
Foreign bonds
OthersTotal assets
Derivative financial instruments*2
Currency-related
Stock-related¥––
547,776––
547,776

Level 2¥

24,700–431,919
8,310
82,846
547,7760–0––1,060,004
26,19826,1981,033,805¥

Level 3897
897
64,899––64,8992,683
374,147–
477,007179,968
1,060,004(9,755)(9,755)
–

Total
¥

–
–
–
64,899–65,796
549
–
549

897
897
1,672,680
26,19826,198
1,646,481
27,383374,147
431,919550,216
262,814
1,673,577(9,204)(9,755)550*1 Investment trusts which are accounted for in accordance with Paragraph 24-3 and 24-9 of “Implementation Guidance on
Accounting Standard for Fair Value Measurement” are not included in the table above. The balance sheet amount of theinvestment trusts which are accounted for in accordance with paragraph 24-3 of the implementation guidance, was ¥134,005
million (US$1,003 million) as of March 31, 2023. The balance sheet amount of the investment trusts which are accounted for inaccordance with Paragraph 24-9 of the implementation guidance, was ¥5,196 million (US$38 million) as of March 31, 2023.
*2 Assets and liabilities generated by derivative financial instruments are offset and presented net. Net liabilities in total arepresented in parentheses.

Millions of Yen
2022
As of March 31

Fair Value
Level 1

Monetary claims bought
Available-for-sale securities
Securities*1
Trading securities
National government bonds and local
government bonds
Corporate bonds
Domestic stocks
Foreign stocks
Foreign bonds
Available-for-sale securities
National government bonds and local
government bonds
Corporate bonds
Domestic stocks
Foreign bonds
Total assets
Derivative financial instruments*2
Currency-related
Stock-related¥––
580,435
24,719Level 2¥––
1,169,127
1,882¥

Level 3957
957
29,482
–

Total
¥

957
957
1,779,045
26,601

5,830
–
7,914
8,269
2,705
555,716

–
902
–
–
979
1,167,245

–
–
–
–
–
29,482

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

39,829–413,036
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 ¥382,348 million as of March 31, 2022.
*2 Assets and liabilities generated by derivative financial instruments are offset and presented net. Net liabilities in total arepresented in parentheses.

78

Asahi Mutual Life Insurance Company Annual Report 2023

10. Non-consolidated Financial Statements

Millions of U.S. Dollars
2023
As of March 31

Fair Value
Level 1

Monetary claims bought
Available-for-sale securities
Securities*1
Trading securities
OthersAvailable-for-sale securities
National government bonds and local
government bonds
Corporate bonds
Domestic stocks
Foreign bonds
OthersTotal assets
Derivative financial instruments*2
Currency-related
Stock-related

$

–
–
4,102
–
–
4,102

Level 2
$

184
–
3,234
62
620
4,102
0
–
0

Level 3

–
–
7,938
196
196
7,742

$

Total

6
6
486
–
–
486

20
2,801
–
3,572
1,347
7,938
(73)
(73)
–

$

–
–
–
486
–
492
4
–
4

6
6
12,526196
196
12,330
205
2,801
3,234
4,120
1,968
12,533(68)(73)
4*1 Investment trusts which are accounted for in accordance with Paragraph 24-3 and 24-9 of “Implementation Guidance on
Accounting Standard for Fair Value Measurement” are not included in the table above. The balance sheet amount of theinvestment trusts which are accounted for in accordance with paragraph 24-3 of the implementation guidance, was ¥134,005
million (US$1,003 million) as of March 31, 2023. The balance sheet amount of the investment trusts which are accounted for inaccordance with Paragraph 24-9 of the implementation guidance, was ¥5,196 million (US$38 million) as of March 31, 2023.
*2 Assets and liabilities generated by derivative financial instruments are offset and presented net. Net liabilities in total arepresented in parentheses.

i)

Investment trusts which are accounted for in accordance with Paragraph 24-3 and 24-9 of“Implementation Guidance on Accounting Standard for Fair Value Measurement”a) Reconciliation between the beginning and ending balance, and net unrealized gains (losses)
recognized as gains (losses) for the fiscal year, of the investment trusts which are accounted for inaccordance with Paragraph 24-3 of “Implementation Guidance on Accounting Standard for Fair
Value Measurement”
Millions of Yen
For the year ended March 31
Beginning balance
Gains (losses) and net unrealized gains (losses) on available-for-salesecurities, net of tax recorded for the fiscal year:
Gains (losses) recorded for the fiscal year *Net unrealized gains (losses) on available-for-sale securities, netof tax recorded for the fiscal year
Net amount of purchase, sale, and redemption
Amount of investment trusts whose NAV is deemed as market value
Amount of investment trusts whose NAV is not deemed as market
value
Ending balance

Millions of
U.S. Dollars

2023
¥

2023

121,141

$

907

642
1,926

4
14

(1,283)
12,221
–

(9)
91
–

–
134,005

–
1,003

1,926

14

Net unrealized gains (losses) on investment trusts held at the balance
sheet date among the amount recorded to gains (losses) for the
fiscal year ** Those amounts are included in investment income and investment expenses in the non-consolidated statement of income.

b) Breakdown of balance by restriction on cancellation as of the end of fiscal year
Millions of Yen

Millions of
U.S. Dollars

2023

2023

As of March 31
Investment trusts which need more than 1 month to cancel from thenotification of cancellation
Other than above¥

45,332
88,672

$

339
664

79

10. Non-consolidated Financial Statementsc) Reconciliation between the beginning and ending balance, and net unrealized gains (losses)
recognized as gains (losses) for the fiscal year, of the investment trusts which are accounted for inaccordance with Paragraph 24-9 of “Implementation Guidance on Accounting Standard for Fair
Value Measurement”
Millions of
U.S. Dollars

Millions of Yen
For the year ended March 31

2023

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

¥

2023
5,104

$

38

93
–

0
–

93
(0)

0
(0)

–

–

–
5,196

–
38

–

–

* Those amounts are included in investment income and investment expenses in the non-consolidated statement of income.

(2) Financial assets and liabilities not recorded at fair values on the non-consolidated balance sheets
Millions of Yen
2023
As of March 31

Fair Value
Level 1

Monetary claims bought
Held-to-maturity debt securities
Securities
Held-to-maturity debt securities
National government bonds and local
government bonds
Corporate bonds
Foreign bonds
Policy-reserve-matching bonds
National government bonds and local
government bonds
Corporate bonds
Loans
Policy loans
Industrial and consumer loans
Total assets
Bonds payable
Loans payable
Total liabilities

80

Asahi Mutual Life Insurance Company Annual Report 2023¥––
1,715,893
36,263¥

Level 2
20,842
20,842510,901
81,322¥

Level 3447
447
173,562
173,562¥

Total
21,29021,2902,400,357
291,147

36,263––
1,679,630–
81,322–429,579––
173,562–

36,26381,322
173,562
2,109,209

1,679,630––––
1,715,893–––

46,179383,400–––
531,744
147,092–
147,092––
310,838
30,254
280,583
484,848–
50,49050,4901,725,809
383,400
310,838
30,254
280,583
2,732,485
147,092
50,490
197,583

10. Non-consolidated Financial Statements

Millions of Yen
2022
As of March 31

Fair Value
Level 1

Monetary claims bought
Held-to-maturity debt securities
Securities
Held-to-maturity debt securities
National government bonds and local
government bonds
Corporate bonds
Foreign bonds
Policy-reserve-matching bonds
National government bonds and local
government bonds
Corporate bonds
Loans
Policy loans
Industrial and consumer loans
Total assets
Bonds payable
Loans payable
Total liabilities¥––
1,752,190
36,939Level 2¥––592,381
148,494¥

Level 323,29723,297
124,909
124,909¥

Total
23,29723,2972,469,481
310,342

36,939––1,715,251–
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
465,707–42,26042,2601,766,334
392,804
317,500
32,199285,3012,810,279
103,200
42,260145,460

Millions of U.S. Dollars
2023
As of March 31

Fair Value
Level 1

Monetary claims bought
Held-to-maturity debt securities
Securities
Held-to-maturity debt securities
National government bonds and local
government bonds
Corporate bonds
Foreign bonds
Policy-reserve-matching bonds
National government bonds and local
government bonds
Corporate bonds
Loans
Policy loans
Industrial and consumer loans
Total assets
Bonds payable
Loans payable
Total liabilities$––
12,850271$

Level 2
156
156
3,826
609

Level 3
$

3
3
1,299
1,299

Total
$

159
159
17,976
2,180

271
–
–
12,578

–
609
–
3,217

–
–
1,299
–

271
609
1,299
15,795

12,578––––12,850
–
–
–

345
2,871
–
–
–
3,982
1,101
–
1,101

–
–
2,327
226
2,101
3,631
–
378
378

12,924
2,871
2,327
226
2,101
20,463
1,101
378
1,479

(3) Description of the evaluation methods and inputs used to measure fair valuei)Securities including monetary claims bought which are treated as securities based on “AccountingStandard for Financial Instruments” (ASBJ Statement No. 10)
Fair values of securities for which unadjusted quoted market prices in active markets are available arecategorized as Level 1, which mainly include listed stocks, listed investment trusts and government
bonds. In the case the market is inactive even if the quoted market price is available, thosesecurities 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.

8110. Non-consolidated Financial Statements

The fair value of unlisted investment trusts, which have no restriction on cancellation that issignificant enough to require compensation for risk from market participants, are based on thequoted prices and others offered by counterparty financial institutions and categorized as level 2.
Note for the fiscal year ended March 31, 2022
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 and government bonds. In the casethe market is inactive even if the quoted market price is available, those securities are categorized
as Level 2, which mainly include corporate bonds and foreign bonds. In the case the quoted market
price is not available, fair values are measured by evaluation methods such as discounting future
cash flows. In evaluation, the Company maximizes the use of observable inputs including swap
rates, interest rate swap spreads, currency basis and others. When significant unobservable inputs
are used to measure fair values, those securities are categorized as Level 3.
Fair values of investment trusts are measured at the disclosed net asset value and others.
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 categorized into any level.
ii) Loans
As credit exposure for policy loans without specific repayment periods is limited to the amount of
the cash surrender value, the Company considers book value as fair value with assumption that fairvalue approximates book value in light of factors such as projected repayment period and interest
terms. Policy loans are categorized as level 3.
As for industrial and consumer loans, the fair value of loans is stated at theoretical prices calculatedby discounting the future cash flows to the present value by type of loan, using market interest
rates with some adjustments based on internal credit rating. Industrial and consumer loans are
categorized as level 3. The fair value of loans to legally bankrupt borrowers, substantially bankrupt
borrowers and borrowers with high possibility of bankruptcy is stated at the amounts by deducting
estimated losses from the book value before direct write-offs. Loans to legally bankrupt borrowers,
substantially bankrupt borrowers and borrowers with high possibility of bankruptcy are categorized
as level 3.
iii) Bonds payable
The fair value of bonds payable issued by the Company is stated at fair market value. Bonds
payable issued by the Company are categorized as level 2. The fair value of bonds payable forwhich designated hedge accounting (“Furiate-shori”) for currency swaps are applied is stated atfair market value added by the fair value of currency swaps. The Company adopts prices obtained
from external information venders as the fair value of currency swaps.
iv) Loans payableAs for loans payable, the fair value of loans is stated at theoretical prices calculated by discounting
the future cash flows to the present value, using market interest rates with some adjustments basedon the Companyʼs credit risk. Loans payable are categorized as level 3.
v) Derivative financial instruments
As for derivative financial instruments, the fair values of foreign currency forward contracts arestated at theoretical prices calculated by the Company based on the TTM at the balance sheet
date. The fair values of currency options, stock options and interest rate swaptions are stated at thequoted prices offered by counterparty financial institutions.
In evaluation of derivative financial instruments, the Company maximizes the use of observable
inputs. In the case unobservable inputs are not used or impact of unobservable inputs are notmaterial, derivative financial instruments are categorized as level 2. In the case significant
unobservable inputs are used, derivative financial instruments are categorized as level 3.
(4) Quantitative information about financial assets and liabilities measured and stated in the nonconsolidated balance sheets at fair value and categorized as Level 3i)82

Quantitative information on significant unobservable inputs

Asahi Mutual Life Insurance Company Annual Report 2023

10. Non-consolidated Financial Statements

Quoted prices obtained from third parties are used for fair values categorized as level 3 without
adjustment.
ii) Reconciliation between the beginning and ending balance, and net unrealized gains (losses)
recognized as gains (losses) for the fiscal year
Millions of Yen

For the year ended March 31, 2023

Beginning balance
Gains (losses) and net unrealized gains(losses) on available-for-sale securities,
net of tax recorded for the fiscal year:
Gains (losses) recorded for the fiscal
year*1
Net unrealized gains (losses) on
available-for-sale securities, net oftax recorded for the fiscal year
Net amount of purchase, sale, issue, andsettlement
Transfer to fair values of Level 3*2
Transfer from fair values of Level 3*3
Ending balance
Net unrealized gains (losses) on financial
assets and liabilities held at the balance
sheet date among the amount recorded
to gains (losses) for the fiscal year*1

Monetaryclaims bought

Securities

Available-forsale securities

Available-forsale securities

Others(i)¥
957

Foreign bonds(ii)¥ 29,482

Total(i) + (ii)

Derivative
financial
instruments
Stock-related¥

30,440

¥

270

(39)

(1,498)(1,538)(1,981)

(20)

298

278

(1,981)(18)(1,797)(1,816)

–

(20)
–
–
897

–
41,912(4,997)64,899(20)
41,912(4,997)65,796

2,262
–
–
550

(20)

298

278

(1,981)*1 Those amounts are included in investment income and investment expenses in the non-consolidated statement of income.
*2 Those amounts are transferred from level 2 to level 3 because of lack of observable data. Those transfers were made at the endof the fiscal year.
*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.

Millions of Yen

For the year ended March 31, 2022

Beginning balance
Gains (losses) and net unrealized gains(losses) on available-for-sale securities,
net of tax recorded for the fiscal year:
Gains (losses) recorded for the fiscal
year*1
Net unrealized gains (losses) on
available-for-sale securities, net oftax recorded for the fiscal year
Net amount of purchase, sale, issue, andsettlement
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 held at the balance
sheet date among the amount recorded
to gains (losses) for the fiscal year*1

Monetaryclaims bought

Securities

Available-forsale securities

Available-forsale securities

Others(i)¥
969

Foreign bonds(ii)¥ 26,853

Total(i) + (ii)

Derivative
financial
instruments
Stock-related¥

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 statement of 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.

8310. Non-consolidated Financial Statements

Millions of U.S. Dollars

For the year ended March 31, 2023

Beginning balance
Gains (losses) and net unrealized gains(losses) on available-for-sale securities,
net of tax recorded for the fiscal year:
Gains (losses) recorded for the fiscal
year *1
Net unrealized gains (losses) on
available-for-sale securities, net oftax recorded for the fiscal year
Net amount of purchase, sale, issue, andsettlement
Transfer to fair values of Level 3*2
Transfer from fair values of Level 3*3
Ending balance
Net unrealized gains (losses) on financial
assets and liabilities held at the balance
sheet date among the amount recorded
to gains (losses) for the fiscal year*1

Monetaryclaims bought

Securities

Available-forsale securities

Available-forsale securities

Others(i)

Foreign bonds
(ii)
$
220

$

7

Derivative
financial
instruments

Total(i) + (ii)

Stock-related
$

227

$

2

(0)

(11)

(11)

(14)

(0)

2

2

(14)

(0)

(13)

(13)

–

(0)
–
–
6

–
313
(37)
486

(0)
313
(37)
492

16
–
–
4

(0)

2

2

(14)

*1 Those amounts are included in investment income and investment expenses in the non-consolidated statement of income.
*2 Those amounts are transferred from level 2 to level 3 because of lack of observable data. Those transfers were made at the endof the fiscal year.
*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 the actuarial andaccounting department and the risk management department. In accordance with these policies
and procedures, the risk management department measures the fair value. The validity of theevaluation methods and inputs used to measure fair value and the appropriateness of categorizationof fair value are verified in the independent division in the risk management department.
In fair value measurement, valuation models in which the nature, characteristics and risks ofindividual assets are most appropriately reflected are used. In addition, when quoted prices
obtained from third parties are used, the validity of the prices is verified by appropriate methods
such as confirmation of evaluation method and used inputs and comparison with the fair values ofsimilar financial instruments.

7. Investments and Rental Properties
The Company holds investment and rental properties such as office buildings in Tokyo and other areas. The
carrying amounts and the fair values of investment and rental properties were ¥240,015 million (US$1,797
million) and ¥290,414 million (US$2,174 million) as of March 31, 2023 and ¥242,418 million and ¥285,844
million as of March 31, 2022, respectively. The fair value is mainly based on the value (including someadjustments using the reference prices) of real estate appraisal report prepared by the external real-estateappraiser in accordance with real estate appraisal standards.

8. Securities Lent under Lending Agreements
The amounts of securities lent under lending agreements were ¥199,653 million (US$1,495 million) and¥218,367 million as of March 31, 2023 and 2022, respectively.

9. Claims
The total amounts of claims against bankrupt and quasi-bankrupt obligors, claims with collection risk,delinquent loans three or more months past due and restructured loans, which were included in claims,
were ¥521 million (US$3 million) and ¥609million as of March 31, 2023 and 2022, respectively.

84

Asahi Mutual Life Insurance Company Annual Report 2023

10. Non-consolidated Financial Statementsi)

Claims against bankrupt and quasi-bankrupt obligors were ¥386 million (US$2 million) and ¥453
million as of March 31, 2023 and 2022, respectively.

ii) Claims with collection risk were ¥30 million (US$0 million) and ¥70 million as of March 31, 2023 and2022, respectively.
iii) Delinquent loans three or more months past due were ¥85 million (US$0 million) and ¥66 million asof March 31, 2023 and 2022, respectively.
iv) Restructured loans were ¥20 million (US$0 million) and ¥20 million as of March 31, 2023 and 2022,
respectively.
Claims against bankrupt and quasi-bankrupt obligors are claims to obligors who are subject to bankruptcy,
corporate reorganization or rehabilitation or other similar proceedings and other obligors in serious
financial difficulties.
Claims with collection risk are claims to obligors with deteriorated financial condition and results ofoperations from which it is unlikely that the principal and interest on the claims will be recovered, excluding
those claims classified as claims against bankrupt and quasi-bankrupt obligors.
Delinquent loans three or more months past due are loans for which interest payments or repayments ofprincipal are delinquent for three months or more from the due dates under the terms of the related loan
agreements, excluding those claims classified as claims against bankrupt and quasi-bankrupt obligors andclaims with collection risk.
Restructured loans are loans for which certain concessions favorable to borrowers, such as interest
reduction or exemptions, rescheduling of due dates of principal or interest payments, waivers of claim
or other terms, have been negotiated for the purpose of assisting and supporting the borrowers in the
restructuring of their businesses. This category excludes claims classified as claims against bankrupt andquasi-bankrupt obligors, claims with collection risk and delinquent loans three or more months past due.
The direct write-offs related to claims decreased the amounts of claims against bankrupt and quasibankrupt obligors described above by ¥5 million (US$0 million) and ¥24 million as of March 31, 2023 and2022, respectively.

10. Accumulated Depreciation of Tangible Fixed Assets
Accumulated depreciation of tangible fixed assets totaled ¥281,800 million (US$2,110 million) and ¥286,537
million as of March 31, 2023 and 2022, respectively.

11. Separate Accounts
Total assets in separate accounts provided for in Article 118 of the Insurance Business Act were ¥26,438
million (US$197 million) and ¥28,175 million as of March 31, 2023 and 2022, respectively. The amounts ofseparate account liabilities were the same as separate account assets.

12. Receivables from/Payables to Subsidiaries
The total amounts of receivables from/payables to subsidiaries were ¥411 million (US$3 million) and ¥2,744
million (US$20 million) as of March 31, 2023 and ¥386 million and ¥2,158 million as of March 31, 2022,
respectively.

13. Deferred Taxes(1) Deferred tax assets/liabilities were recognized as follows:
Millions of
U.S. Dollars

Millions of Yen
As of March 31
Deferred tax assets
Valuation allowance for deferred tax assets
Subtotal
Deferred tax liabilities
Net deferred tax assets (liabilities)

2023
¥

¥

61,132
13,58047,551
41,861
5,690

2022
¥

¥

68,186
13,89754,28857,911(3,622)

2023
$

$

457
101
356
313
42

85

10. Non-consolidated Financial Statements

Major components of deferred tax assets/liabilities were as follows:
Millions of Yen

Millions of
U.S. Dollars

2023

2023

As of March 31
Deferred tax assets
Contingency reserve
Reserve for price fluctuation
Reserve for employeesʼ retirement benefits
Impairment losses
IBNR reserves
Losses on valuation of securities
Deferred tax liabilities
Net unrealized gains on available-for-sale securities¥

17,607
10,660
8,015
7,356
4,260
3,489

$

131
79
60
55
31
26

37,793

283

Millions of Yen
As of March 31

2022

Deferred tax assets
Contingency reserve
Reserve for price fluctuation
Reserve for employeesʼ 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

Tax loss carried forward and the deferred tax assets by carry forward period were as follows:
Millions of Yen
2023
As of March 31

Tax loss carried forward
Valuation allowance
Deferred tax assets

Within 1 year
¥

–
–
–

Over 1 to
5 years¥–––

Over 5 years
¥

1,001
–
1,001

Total
¥

1,001
–
1,001** The Company considers deferred tax assets recorded for tax loss carried forward to be recoverable as it is expected that there
will be taxable income in the future.

Millions of U.S. Dollars
2023
As of March 31

Tax loss carried forward
Valuation allowance
Deferred tax assets

Within 1 year
$

–
–
–

Over 1 to
5 years$–––

Over 5 years
$

7
–
7

Total
$

7
–
7*

* The Company considers deferred tax assets recorded for tax loss carried forward to be recoverable as it is expected that there
will be taxable income in the future.

(2) The statutory tax rates were 27.9% and 27.9% for the fiscal years ended March 31, 2023 and 2022,
respectively. The main factors causing the differences between the statutory tax rates and the actual
effective tax rates after considering deferred taxes were as follows:
For the year ended March 31
Interest on foundation funds
For the year ended March 31
Interest on foundation funds
Change of valuation allowance for deferred tax assets

86

Asahi Mutual Life Insurance Company Annual Report 2023

2023(3.5)%
2022(4.0)%(3.2)%

10. Non-consolidated Financial Statements(3) The Company has applied the group tax sharing system from the fiscal year ended March 31, 2023.
As a result, the Company has applied the “Practical Solution on the Accounting and Disclosure Under
the Group Tax Sharing System” (ASBJ PITF No.42, issued on August 12, 2021) to the accounting anddisclosure treatment of corporate tax, local corporate tax and tax effect accounting.

14. Reserve for Dividends to Policyholders
Millions of
U.S. Dollars

Millions of Yen
For the years ended March 31
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

2023
¥

¥

28,644
2,121
3,664
3
27,1032022¥¥

30,050
2,153
3,562
3
28,644

2023
$

$

214
15
27
0
202

15. Stocks of Subsidiaries and Affiliates
The amounts of stocks of subsidiaries and affiliates the Company held as of March 31, 2023 and 2022 were
¥62,621 million (US$468 million) and ¥37,377 million, respectively.
The Company provided capital of ¥5,000 million (US$37 million) to Nanairo Life Insurance Co., Ltd. on April
14, 2023.

16. Pledged Assets
Assets pledged as collateral as of March 31, 2023 and 2022 were securities in the amount of ¥3,224 million(US$24 million) and ¥80,591 million, respectively.

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 which applies mutatis mutandis
to Article 71, Paragraph 1 of the Enforcement Regulation of the Insurance Business Act (hereinafter “reservefor outstanding claims for ceded reinsurance”) was ¥17 million (US$0 million) and ¥9 million as of March 31,
2023 and 2022, respectively.
Policy reserves for the reinsurance contracts provided in accordance with Article 71, Paragraph 1 of the
Enforcement Regulation of the Insurance Business Act (hereinafter “policy reserves for ceded reinsurance”)
were ¥357 million (US$2 million) and ¥373 million as of March 31, 2023 and 2022, respectively.

18. Adjustment to Redemption of Foundation Funds and Appropriation of Net Surplus
The total amounts 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 were¥130,950 million (US$980 million) and ¥174,218 million as of March 31, 2023 and 2022, respectively.

19. Redemption of Foundation Funds
The Company redeemed ¥40,000 million (US$299 million) of foundation funds, which is part of ¥80,000
million of foundation funds offered in August 2015, prior to the redemption date. Accompanying theredemption, the Company transferred the same amount from reserve for fund redemption to reserve forredemption of foundation funds in accordance with Article 56 of the Insurance Business Act.

20. Assets with Rights to Sell
The Company has the legal right to sell or collateralize securities borrowed under loan agreements. The
market values of these assets that were not sold or pledged as collateral as of March 31, 2023 and 2022 were¥21,882 million (US$163 million) and ¥25,709 million, respectively. No assets were pledged as collateral asof March 31, 2023 and 2022.

8710. Non-consolidated Financial Statements

21. Commitment LineAs of March 31, 2023 and 2022, there were unused commitment line agreements under which the Company
is the lender of ¥10,086 million (US$75 million) and ¥13,947 million, respectively.

22. Subordinated Bonds Payable
As of March 31, 2023 and 2022, bonds payable are subordinated bonds payable, for which the repayments
are subordinated to other obligations.

23. Subordinated Loans Payable
As of March 31, 2023 and 2022, loans payable are subordinated loans payable, for which the repayments
are subordinated to other obligations.

24. Contributions to Policyholders Protection Corporation
Note for the fiscal year ended March 31, 2022
The estimated future contributions to the Life Insurance Policyholders Protection Corporation of 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 year in which they are paid.

25. Reserve for Employeesʼ Retirement Benefits(1) Summary of retirement benefit plans
As defined benefit plan, the Company has defined benefit corporate pension plans, which are fundedtype, and lump-sum retirement allowance plans which are non-funded type but resulted in funded type
due to setting of employee pension trust.
(2) Defined benefit plani)

Reconciliation of beginning and ending balance of retirement benefit obligations
Millions of
U.S. Dollars

Millions of Yen
For the years ended March 31
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

2023

2022

2023

¥

39,489
1,779
394
601
(3,706)¥40,365
1,808
403
514
(3,602)

$

295
13
2
4
(27)

¥

38,558¥39,489$288ii) Reconciliation of beginning and ending balance of pension plan assets
Millions of
U.S. Dollars

Millions of Yen
For the years ended March 31
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

2023
¥

¥

7,123
60
181
152
(117)
7,399

2022
¥

¥

7,912
62
(809)
155
(197)
7,123

2023
$

$

53
0
1
1
(0)
55

iii) Reconciliation of retirement benefit obligation and pension plan assets with reserve for employeesʼ

88Asahi Mutual Life Insurance Company Annual Report 2023

10. Non-consolidated Financial Statements

retirement benefits and prepaid pension cost presented on the non-consolidated balance sheets
Millions of
U.S. Dollars

Millions of Yen
As of March 31
a. Funded plan retirement benefit obligationb. Pension plan assets
c. a + b
d. Unrecognized actuarial differences
e. Net amount of liabilities and assets presented on
the non-consolidated balance sheet
f. Reserve for employeesʼ retirement benefits
g. Prepaid pension cost
h. Net amount of liabilities and assets presented on
the non-consolidated balance sheet

2023
¥

2022

38,558(7,399)31,158(2,854)¥28,30328,727(424)¥

28,3032023

39,489(7,123)32,365(2,836)

$

288
(55)
233
(21)

29,52929,847(318)¥

29,529

211
215
(3)
$

211

iv) Breakdown of retirement benefit expenses
Millions of
U.S. Dollars

Millions of Yen
For the years ended March 31
Service cost
Interest cost
Expected return on pension plan assets
Amortization of actuarial differences
Retirement benefit expenses related to defined
benefit plan

2023

2022

2023

¥

1,779
394
(60)
401

¥

1,808
403
(62)
317

$

13
2
(0)
3

¥

2,515

¥

2,466

$

18

v) Breakdown of main pension plan assets
The breakdown of main asset categories as a percentage of pension plan assets was as follows:
As of March 31
Stocks
Bonds
Others
Total

2023

2022

40%
11%
49%
100%

38%
10%
52%
100%

vi) Method for determining the expected long-term rate of return
To determine the expected long-term rate of return on pension plan assets, the Company takes into
account the present and future allocation of pension plan assets, and the present and expected
future long-term rate of return on the diverse range of assets that makes up the pension assets.
vii) Underlying actuarial assumptions
The main underlying actuarial assumptions were as follows:
As of March 31
Discount rate
Expected long-term rate of return on pension plan
assetsDefined benefit corporate pension plans

2023

2022
1.0%

1.0%

0.8%
1.6%

0.8%
1.6%

89

10. Non-consolidated Financial Statements

26. Subsequent Events
Note for the fiscal year ended March 31, 2022
The Company resolved to redeem ¥40,000 million of foundation funds, which is part of ¥80,000 million offoundation funds offered in August 2015, on August 1, 2022, prior to the redemption date, at the meetingof Board of Directors on May 19, 2022. Accompanying the redemption, the same amount is scheduled
to be transferred from reserve for fund redemption to reserve for redemption of foundation funds inaccordance with Article 56 of the Insurance Business Act.

III. Notes to Non-consolidated Statements of Income
1. Transactions with Subsidiaries and Affiliates
The total amounts of revenues and expenditures in connection with subsidiaries and affiliates were ¥803
million (US$6 million) and ¥10,061 million (US$75 million) for the fiscal year ended March 31, 2023 and ¥623
million and ¥9,338 million for the fiscal year ended March 31, 2022, respectively.

2. Investment Income and Expenses
The major components of gains on sales of securities were as follows:
Millions of
U.S. Dollars

Millions of Yen
For the years ended March 31
Domestic bonds
Domestic stocks and other securities
Foreign securities

2023
¥

2022

6,720
1,490
7,904

¥

2023

4,943
6,238
767

$

50
11
59

The major components of losses on sales of securities were as follows:
Millions of
U.S. Dollars

Millions of Yen
For the years ended March 31
Domestic bonds
Domestic stocks and other securities
Foreign securities

2023
¥

2022

3,752
1,987
19,785

¥

2023

1,073
1,448
8,655

$

28
14
148

The major components of losses on valuation of securities were as follows:
Millions of
U.S. Dollars

Millions of Yen
For the years ended March 31
Domestic stocks and other securities
Foreign securities

2023
¥

2022
108
5

¥

2023
272
1

$

0
0

Losses on derivative financial instruments included net valuation losses of ¥4,761 million (US$35 million) for
the fiscal year ended March 31, 2023.
Note for the fiscal year ended March 31, 2022
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
Provisions for reserve for outstanding claims for ceded reinsurance, which were deducted in calculating
provision for reserve for outstanding claims were ¥7 million (US$0 million) and ¥2 million for the fiscal years
ended March 31, 2023 and 2022, respectively.

90

Asahi Mutual Life Insurance Company Annual Report 2023

10. Non-consolidated Financial Statements

Reversal of policy reserves for ceded reinsurance, which was deducted in calculating reversal of policy reserves
for the fiscal year ended March 31, 2023 was ¥15 million (US$0 million).
Provision for policy reserves for ceded reinsurance, which was added in calculating reversal of policy reserves
for the fiscal year ended March 31, 2022 was ¥13 million.

4. Impairment Losses of Fixed Assets
For the fiscal years ended March 31, 2023 and 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 sheets.
(2) Background information on recognizing the impairment losses
As the profitability of certain real estate for rent dropped down significantly due to a decrease in thelevel of rental income and a declining trend in the market prices of land, the Company reduced thebook values of such real estate for rent, real estate not in use and real estate scheduled to be sold totheir recoverable amounts. The write-downs were recognized as impairment losses and included in theextraordinary losses.
(3) Asset groups for which impairment losses were recognized and losses by classification of fixed assets
Millions of
U.S. Dollars

Millions of Yen
For the years ended March 31
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)

2023
¥

¥

2022
–
–
–

¥

2023
–
–
–

$

–
–
–

552
1,683
2,235

622
526
1,149

4
12
16

701
351
1,053

–
–
–

5
2
7

1,254
2,035
3,289

622
526
1,149

9
15
24

¥

$

(4) Calculation method of recoverable amounts
The recoverable amounts of real estate for rent are determined at net realizable value or value in use.
The recoverable amounts for real estate not in use and real estate scheduled to be sold are net realizablevalue. Value in use is determined as the estimated net future cash flows, reflecting the volatility risk,
discounted at 3.3% and 3.3% for the fiscal years ended March 31, 2023 and 2022, respectively. 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.

The non-consolidated financial statements in this annual report have been audited by Ernst & Young ShinNihon LLC, an independentcertified public accountant.

91

11. Company Overview (as of March 31, 2023)

Tokyo Head Office

Tama Head Office

Company Name:

Asahi Mutual Life Insurance Company

Founded:March 1, 1888

Total Assets:

5.2856 trillion yen

Number of Offices:

58 branches; 566 sales offices (as of April 1, 2023)

Number of Employees:

18,609 (office staff: 4,125; sales representatives: 14,484)

Location of Tokyo Head Office:6-1, Yotsuya 1-chome, Shinjuku-ku, Tokyo 160-8570, Japan
Tel: 81-3-4214-3111

92

Asahi Mutual Life Insurance Company Annual Report 2023