COOP-2010表1-4.pdf 1 11/01/06 11:21

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

1

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

2

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

3

We will offer members the opportunity to learn about insurance and acquire the ability toselect the insurance that suits them most.

4

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

5

We will positively face the problems of aging, health and welfare, and conduct activities tocontribute to society, such as social welfare activities.

ANNUAL REPORT 2010
Year Ended March 20, 2010

CONTENTS
Financial Highlights ..... 1

Message from the President ..... 2

Co-op, JCIF and CO-OP Insurance ..... 3
Payment of Claims ..... 7

Risk Management and Compliance System ..... 8

Activities ..... 10

Fiscal 2009 CO-OP Insurance Business Overview ..... 12
Balance Sheet ..... 14

Income Statement ..... 15

Solvency Margin Ratio and others ..... 16

The official name of our organization is the Japan CO-OP Insurance Consumers’
Co-operative Federation, commonly abbreviated as JCIF

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Financial Highlights
For the years ended March 20,

Millions of
U.S. dollars*2

Millions of yen*1

2009

2010

2010

Ordinary income¥1,994¥142,335$1,572

Ordinary expenses

1,674

109,410

1,208

Ordinary surplus

320

32,924363

Net surplus

156

4,014

33

Total assets

28,390179,102

1,979

Total liabities

5,833

109,992

1,215

Total capital

22,556

69,110763

Number of policies (total)

6,869,745

7,123,182—

Number of policies (direct insurance total)

6,447,924

6,694,884—¥9,598¥10,139

$112

—

983.5

—

As of March 20,

Amount insured (direct insurance total) (¥ billions / $ billions)
Solvency margin (%)

1. Yen Amounts are rounded down to the nearest ¥ 1 million.
2. U.S. dollar amounts are converted, for convenience only, at ¥ 90.50 = US$1.00, the rate prevailing on March 19, 2010, and rounded
down to the nearest $1 million.
3. Our business for the 2009 started between March 1st ended March 20th 2009, as CO-OP Insurance business was divided fromJCCU in 2009.

Number of Policies (all total)(thousands)(thousands)(¥ billions)(¥ billions)

8,0008,000

10,13910,13910,00010,000

6,263
6,263

9,598
9,598

9,172
9,172

7,123
7,123
6,869
6,869
6,677
6,677

7,0007,000

6,0006,000

Amount Insured

8,471
8,471
8,0008,000 7,690
7,690

5,777
5,777

5,0005,000

6,0006,000

4,0004,000
4,0004,000

3,0003,000

2,0002,000
2,0002,000
1,0001,0000020062006200720072008200820092009 20102010（As ofMarch20） 20）（As
of March

0020062006200720072008200820092009 20102010（As ofMarch20） 20）（As
of MarchJapan CO-OP Insurance Consumers’ Co-operative Federation

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Message from the President
The Japan CO-OP Insurance Consumers’ Cooperative Federation (JCIF) started business
operations in fiscal 2009, taking over the mutual
insurance business operated by the Japanese
Consumers’ Co-operative Union (JCCU) andmember co-ops. During that auspicious year, thetotal number of policyholders of the five CO-OP
Insurance products continued to rise, exceeding
seven million in November 2009. Notably, thenumber of policyholders for the term life insurance
policy, CO-OP Insurance i-Plus, now in its 10th year,
topped one million. I believe that our remarkable
performance can be attributed to the support andcooperation extended to us by all our stakeholders
including the members and officials of member
co-ops. I would like to take this opportunity to
express my heartfelt respect and gratitude for yourcontribution.
Looking at the CO-OP Insurance businessin fiscal 2009, total premium income for CO-OP
Insurance Tasukeai and i-Plus policies increased
steadily to reach 143.5 billion yen, up 5.0% fromthe previous ﬁscal year. Total payment of insurance
claims for CO-OP Insurance Tasukeai and i-Plusamounted to 55.0 billion yen, up 6.9% from theprevious fiscal year, with the number of claims
payments climbing 9.0% to 1.15 million. We arepleased to have been of service to our policyholders.
In view of our expanded policyholder base,we continued our efforts to improve our insurance
product portfolio during fiscal 2009. In September
2009, we launched a new type of CO-OP Insurance
i-Plus called Gold 80 Medical Insurance, which
provides generous coverage of in-patient treatment
with a reasonable premium. CO-OP Insurance
Tasukeai was also boosted with the addition of Junior
18 1900-yen Course in March 2010, which hasless stringent declaration requirements to provide
higher coverage for children who are receiving outpatient medical treatment or taking medicine. The
new Tasukeai had attracted as many as over 5,900
policyholders by May 2010.
Our efforts to promote the mutual insurance
business included establishing new Regional
Promotion Departments in five regions nationwide
as a framework for providing member co-ops withmore finely tuned support; increasing the numberof CO-OP Insurance sales promotion staff; setting
up a mutual insurance counter at co-op stores; andreinforcing our education and training programs.

2

We also provided our policyholders with ongoingguidance to help them avoid missing out on claims
payments.
Fiscal 2010 is the year in which JCIF kicks off
its three-year plan—the JCIF Medium-term Business
Plan 2010‒2012. Product development is currently
underway to introduce a much-called-for permanent
life insurance product in September 2011. In
addition, we will endeavor to refine our services
to ensure prompt and accurate claims payments,
push down the ratio of operational expenses bystreamlining operations and realigning our cost
structure, strengthen our member co-ops’ capacity
to promote sales, and reinforce frameworks for strict
compliance and risk management. Furthermore, wewill be holding discussions to review the long-term
visions of CO-OP Insurance and examine the kindsof social contribution activities we should carry out,
with the aim of pursuing business operations uniqueto co-ops.
JCIF will undertake continued efforts to become
the first-choice provider of mutual insurance thatserves as the centerpiece of livelihood security for
co-op member households. We humbly ask for yourcontinued support and encouragement in the years
to come.

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

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Co-op, JCIF and CO-OP Insurance
Co-op is the Largest Consumer Organization in Japan
Co-op was established based on the Consumers’ Livelihood Co-operative Society Law (Co-op Law), whichcame into effect in 1948. Co-op is an organization wherein Co-op members are free to join or cancel theirmembership. The organization aims to enhance the everyday lifestyles of members through co-operation.
Members paying into the organization make up the organization's principle operations.
Co-ops are comprised of retail Co-ops (regional Co-ops, institutional Co-ops, school teachers’ Co-ops
and university Co-ops), health Co-ops, insurance Co-ops and housing Co-ops.
These organizations base their operations on close ties to the lifestyle of members and make up Japan's
largest consumer organization.

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

JCCU is the Association for Co-ops in Japan
JCCU (Japanese Consumers’ Co-operative Union) was established when Co-ops united in March
20, 1951 in order to realize a better lifestyle for its members.
JCCU positions its product supply business and CO-OP Insurance business as its cornerstone
operations until FY2008. Under the revised Co-op Law adopted last year, Co-op Insurance business
was transferred to JCIF. For the product supply business JCCU works to improve and develop
CO-OP brand products in order to supply the nationwide network of Member Co-ops with better
products. While aligning itself with Member Co-ops, JCCU works to ensure the safety of foodproducts from the perspective of consumers.
Furthermore JCCU ensures the rights of consumers and is undertaking environmental andsocial welfare activities.

Japan CO-OP Insurance Consumers’ Co-operative Federation

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JCIF, Co-op and JCCU
Our organization is a union of 164 consumer cooperative societies from across the nation. Although eachmember Co-op is an independent legal entity, each provides CO-OP insurance to its members in cooperation
with the union.
The JCIF has been established to take over and exclusively conduct all mutual insurance businesspreviously conducted by our Member Co-ops.
This new organization will have close relationships with purchasing, services and other CO-OP
businesses, making it the most useful and comprehensive in terms of providing for the day-to-day needs ofindividual members.
CO-OP members
CO-OP members
Member Co-ops
Member
Co-opsRegional Co-ops,
Co-op
Associations etc.
Regional Co-ops, Co-op Associations etc.
Promotion support of product supply, social activities etc.
Promotion support of product supply, social activities etc.

JCIF
● CO-OP Insurance business
JCIF
Promotionof Life-Planning● CO-OP
Insurancebusiness●
Activities of Life-Planning● Promotion
Activities

JCCU● Improvement and development of CO-OP brand
JCCU

products, supplying
business etc.
and developmentof CO-OP brand● Improvement
Welfave business●products,
supplyingetc.
business etc.
Supportactivities
andcommunication
with foreign●● Welfave business etc.
CO-OPs.activities
Participation
in international withmeetings
etc.
and communication
foreign● Support
CO-OPs. Participation in international meetings etc.

Roles of Member Co-ops and JCIFThe JCIF will work to enhance our relationship with Member Co-ops by fulfilling the requirements of our
speciﬁed role and acting cooperatively to achieve our common goals.
CO-OP members, Policyholders
CO-OP members, Policyholders
Window for thesubscription
procedure
Window forthesubscription procedure

Member Co-ops
Member Co-ops

Member Co-op

Cooperative
business
Cooperative
business

Contract of
CO-OP
Insurance
Contractof
CO-OP Insurance

JCIF
JCIF

Window for CO-OP Insurance

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

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

The JCIF develops products tailored to the needs of its members and others.
As well as developing insurance products, the union receives premiums, undertakes procedures related to thepayment of insurance claims and provides administrative support services to Member Co-ops. It also provides
consulting services and responds to complaints.
Each of the three unions of consumer cooperative societies which jointly constitute an insurance group has the dual
roles of Member Co-op and JCIF.

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Japan CO-OP Insurance Consumers’ Co-operative Federation

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Structure of JCIFAs of March 21, 2010

GeneralAssembly

Board
of
Auditors

Total
Planning
OfficeManagement Planning Dept.

Internal
Control Office

Legal and Compliance Dept.

Corporate Management Dept.
Public Relations Dept.

Risk Management Dept.
Hokkaido and Tohoku Area Promotion Dept.
Central Area Promotion Dept.

Board
of
Directiors

Sales
Promotion
Div.

Kansai Area Promotion Dept.
Cyuushikoku Area Promotion Dept.
Kyusyu Area Promotion Dept.
Promotion Planning Dept.
Publicity Dept.
Supporting Office For Area Promotion Dept.
Product Development Dept.
LPA Promotion Dept.

Information
Technology
Div.

System Development Dept.
Asset Management Dept.

Management
Div.

Accounting Dept.
Personal Planning Dept.
General Accounting Dept.
Claims-related Services Dept.

Administrative
Div.

Policy Management Dept.
Call Center Management Dept.
Affairs Planning Dept. (Clerical Dept.)
Customer Satisfaction Promotion Dept.
Internal Audit Dept.

Japan CO-OP Insurance Consumers’ Co-operative Federation

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Types of CO-OP Insurance
CO-OP Insurance Tasukeai—Medical Insurance

CO-OP Insurance i.-Plus—Term Life Insurance up

This insurance provides comprehensive coveragefor outpatient care due to accident, hospitalization,
surgery, death, disability, family members' death of
the insured, and damage to residences caused byfire or other perils. It is designed to meet the Co-op
members' demands for coverage that is essential totheir daily lives at a reasonable premium.
There are four plans for women, for children,
mainly to cover medical, and uniform medical anddeath cover.

This insurance simply provides cover for death, which
can be added cancer, hospitalization, and surgeryof the insured. The maximum sum insured is ¥20
million in death benefits for a reasonable premium.
Added coverage is available by combining i.-Pluswith Tasukeai. The contract term is 10 years and thepremium varies according to the age and sex of theinsured.
Coverage may be extended until the member
reaches the age of 85.

CO-OP Fire Insurance

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

Basic plan that provides cover for death with therebate plan can be matched up with medical cover andwomen’s health cover. The contract term is renewable
after five years with the option of a rebate after the five
years. Coverage may be extended until the member
reaches the age of 80.
CO-OP Insurance i.i. was stopped offer.

Direct and Indirect Insurance Products Offered
CO-OP Insurance offers direct and indirect insurance products. Direct insurance products are offered by JCIF
and Member Co-ops approved by the Ministry of Health, Labour and Welfare or local government bodies.
CO-OP Insurance direct insurance products are Tasukeai and i.-Plus.
For insurance not covered by direct insurance products, CO-OP Insurance forms alliances withZENROSAI * and property and casualty insurance firms to offer indirect insurance products.
CO-OP Fire Insurance and CO-OP Life Insurance New i.i. are offered as indirect insurance products.
* ZENROSAI is Japan's largest workers and consumers insurance cooperative organization recognized by the Co-op Law.

ZENROSAI is a member organization of JCIF. ZENROSAI and JCIF work together to provide a full line-up of CO-OP Insurance.

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Japan CO-OP Insurance Consumers’ Co-operative Federation

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

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

Japan CO-OP Insurance Consumers’ Co-operative Federation

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Risk Management andCompliance System
Risk Management System
In pursuing sound management of the mutual insurance business, JCIF makes efforts to identify risks
and implement proper risk management. Risks associated with the mutual insurance business include thefollowing: Product development risks; Insurance underwriting risks (risks stemming from ﬂuctuations in therate of occurrence of insured accidents against the forecasts made at the time of setting the premium); Assetmanagement risks (risk of suffering a loss in the value of assets held, due to ﬂuctuations in interest rates,
stock prices, foreign exchange rates and deterioration of the ﬁnancial position of banks of deposit or bondissuers); Ofﬁce work risks; and System risks, etc.

● Product Development Risks and Insurance Underwriting Risks

Product development risks and insurance underwriting risks are risks that stem from fluctuations in
the incidence rate of accidents covered beyond the forecasts made at the time of setting the premium.
We manage these risks with due consideration for business stability. For example, we make efforts toachieve an appropriate level of beneﬁt payment rate by identifying, examining, analyzing and regularly
monitoring these risks, as well as verifying them when developing and reviewing products.

● Asset Management Risks

Asset management risks are the risks of suffering a loss in the value of assets held due to ﬂuctuationsin interest rates, stock prices, foreign exchange rates, etc. or deterioration in the ﬁnancial position ofﬁnancial institutions with which we conduct transactions.
We ensure appropriate management of these risks based on a set of rules including the Rules for
Asset Management and the Regulations for Managing Asset Management Risks, which we established inaccordance with the Ordinance for Enforcement of the Consumer Cooperatives Act. Under this system,
we conﬁrm the status of asset management execution, risks, etc. on a regular basis at board meetings
etc. In addition, we carry out sound asset management that best suits the nature of each fund and debt,
focusing on safety, proﬁtability and liquidity.

● Ofﬁce Work Risks and System Risks

Office work risks are the risks of suffering a loss due to officers or staff executing inaccurate
administrative work, causing an accident, or committing a fraud.
System risks are the risks of suffering a loss due to ﬂaws in our computer system including failure andmalfunction, or fraudulent use of our computers.
With respect to ofﬁce work risks and system risks, we conduct analysis and assessment, identify
significant risks, and take protective measures. In addition, to prevent accidents in the office and insystem development and operations, we have in place the Rules of Conduct for Prevention of Serious
Accidents, the Information Security Policy and the Rules for Reporting Operational Accidents.

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

CO-OP Insurance Solicitation Policy

Notification to all members
Based on the Law on Sales of Financial Products, we have established the following CO-OP
Insurance Solicitation Policy.
1. When offering CO-OP Insurance, every effort will be made to comply with the Co-op Law, the Law
on Sales of Financial Products and the Consumer Contract Act to provide services in an appropriate
method.
2. When offering CO-OP Insurance, every effort will be made to ensure members fully understandproduct content and other important information.

3. When offering CO-OP Insurance, every effort will be made to respect the wishes of members, not takeup excessive amounts of members’ time or space.
4. When a claim is made, every effort will be made to ensure swift settlement.

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

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

Business Operations Based on
Policyholder Feedback(1) The consultation center receives complaints and opinions by telephone
CO-OP Insurance, when developing products and paying claims, is making improvements basedon policyholder feedback. In order to receive more feedback and reflect the opinions in ourbusiness, we established the consultation center, which is dedicated to handling complaints,
opinions,and requests in 2006.
l Complaints we received at the consultation center in FY2009

We had 5,212 complaints and requests in fiscal 2009.
Viewing the opinions we received as representing
the voice of our policyholders, we are striving to
improve the problems.

Others

14.6% New entry/products
20.7%

Payment

34.1%

Service

27.1%

Proceduresof entry

3.5%(2) Improvement efforts resulting from complaints and opinions we receive
We have introduced the management system to unify the management of complaints andopinions we receive so that related departments can share and swiftly resolve any issues. In
addition, we report all complaints and opinions to all departments once a week.

Japan CO-OP Insurance Consumers’ Co-operative Federation

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Activities
Life-Planning Activities
Life-Planning activities enable Co-op members to learn about money matters in their lives. In the principle
topic of Revising Coverage, members gain the capability to independently select insurance that is reallynecessary.
As an integral part of Life-Planning activities, JCIF is training members and Co-op staff to be Life-PlanAdvisor (LPA). Participants of LPA courses learn about life planning, insurance, taxation and finance incomprehensive lectures
Co-op carries out the following
held by JCIF in order toLife-Planning activities:
become LPA. As of March● Lectures on Revising Coverage20, 2010 there are 2,446● Training sessions on revising lifestyles
advisors active at Member● Life-planning lectures● Individual consulting
Coops across Japan.
● Life-Planning Humorous poem “Senryu”●Developments in Life-Planning Activities
Life-Planning activities
have now become firmly
established as Co-op
activities. In fiscal 2009,
more than 68,000 people
in total participated in theactivities, principally inrevision of coverage.

Participants in Life-Planning Activities

Number of participants

25,00024,015
Fiscal 2008

22,321

Fiscal 2009

20,00015,00018,18814,22013,848
11,043

10,000
7,314

5,000

0

3,356

Lectures

Training
sessionTraining
session forchildren

2,755 2,624

2,737Life-Planning
lectures

Indivisualconsulting

1,483 1,785“Senryu”
project

435
Institution of
Co-opʼs own
qualification

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

(1) Automatic Blood Pressure Measuring Devices Installed
JCIF has installed automatic blood pressure measuring devices at more than 251 Co-op storesthroughout Japan. Since managing blood pressure is paramount for preventing all lifestyle-related illness,
it is essential to consistently measure blood pressure from day to day. Members are welcome to test theirblood pressure level while shopping, making the devices very useful for managing their day to day health.

(2) CO-OP Insurance Health Call Center
JCIF offers a free phone consultation service madeavailable to Tasukeai, i.-Plus and New i.i. policyholders.
JCIF contracts specialist counselors including doctors
and nurses from governmental corporation to give
advice on health, treatment and care-giving as wellas instruction on which medical facility to use. During
fiscal 2009 the call center fielded 56,501 calls foradvice.

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Welfare Activities
Since 1996, CO-OP Insurance has been assisting Co-ops all overJapan to carry out their welfare activities through the Co-op Welfare
Activity Organization. A variety of activities are carried out includingChild-rearing support, Communication center activities, activities
to foster communication through dinners and meal deliveries andactivities for helping lifestyles. These activities have led to alliances
being formed with other organizations and local government bodies tocreate regional networks.
In fiscal 2009, JCIF contributed a total of ¥22.75 million inassistance for 62 welfare activities of 39 Member Co-ops.

Breakdown of fiscal 2009

(As of March 20, 2010)

Application by activities

Activities

Amount application

Child-reading support

24¥9,677,100

Communication center activities

8

2,604,560

Activities to foster communication through dinners
and meal deliveries

13

4,515,000

Other welfare and volunteer activities

17

5,954,210

Total

62

¥22,750,870

Environmental Activities
JCIF took out the certification of ISO14001 on 2009 September 16th. We build
the environmental management by contriving ways to extract the factor of effectto the environment.

Topics of FY2009
l 1day Eco-Life

More than 200 people who are our employees and their family have achieved more than 1,000 kg
reduction in CO2 emissions, in part by saving energy at home.

l Turning off of lights project

We approved to the gist to the turning off of light campaign which the environmental ministry lectures,executel its project on December 25th, 2009. We did the light down of our office at 19:15. We could
control the electrical amount used of approximately 540 kwh.

l Reuse the tool

We collected the office work supplies which have not been used in the desk to reuse.
Total of the collection was 200,000 yen worth.
Green purchase ratio of the office work supplies fixture to January 2010 was 60.0%l Removal of fluorescent light

We removed the fluorescent tube which does not have hindrance in business for cutting electricity
use. We could be controlled the electrical amount used of approximately 900kwh per a month.

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Fiscal 2009 CO-OP Insurance
Business Overview
Overview of the ﬁnancial results of the CO-OP Insurance business is as follows:

End of year policyholders totaled 7,123,182
When broken down by product, Tasukeai policyholders increased 1.4% from the previous year to
5,676,134, i.-Plus policyholders increased 19.7% to 1,018,750, CO-OP Fire Insurance policyholders
increased 2.6% to 382,262, i.i. policyholders decreased 34.9% to 22,243 and CO-OP Insurance New-i.i.
policyholders increased 56.1% to 23,793.

Insurance in force totaled ¥10,139 billions
CO-OP Insurance Group has total policies of ¥10,139 billions of direct insurance in force, an increase of
5.6% on the previous year.

Premiums totaled ¥143 billions
CO-OP Insurance Group has total premiums of ¥143 billions, an increase of 4.9% on the previous year.

1,157,790 payments made
CO-OP Insurance Group made a total of 1,157,790 payments, an increase of 8.9% on the previous year.

¥55,499 million in payments made
CO-OP Insurance Group has made a total of ¥55,499 millions in payments for insurance claims, anincrease of 6.9% on the previous year.
* Refer to Page 6, about directand indirect insurance.

Asset Management
Investment Assets

Millions of yen*1

composition
ratio(%)

Thousands of
U.S. dollars*2

As of March 20,

2009

2010

Cash

¥4,626¥65,64546.9%$725,351

Negotiable deposit—

22,50016.1%

248,618

Public andcorporate bond—

48,395

34.6%

534,751

Stocks

—

499

0.4%

5,513

Other securities

—

2,894

2.1%

31,977¥4,626¥139,935

100.0%$1,546,220

Total

2010

Stocks 0.4%

Public andcorporate bond

34.6%

Other
securities

2.1%

Cash

46.9%

Negotiable
deposit

16.1%*1. Yen Amounts are rounded down to the nearest ¥ 1 million.
*2. U.S. dollar amounts are converted, for convenience only, at ¥ 90.50 = US$1.00, the rate prevailing on March 19, 2010, and rounded
down to the nearest $1 thousand.
*3. Money held in trust are transferable warranty deposits.
*4. A portion of foreign securities in foreign currencies are hedged.
*5. Other securities are consist of investment trusts in which volatilities are suppressed.

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

CO-OP Insurance i.-Plus

2006

2006

4,937,630

2007

2007

5,276,661

2008

5,547,769

2008

2009

5,597,422

2009

2010

5,676,1342010

As of March 20,
Number of Policies
Premium Income (¥ millions)
Claims Paid (¥ millions)2009
5,597,422¥107,214¥43,996

718,080
850,502
1,018,750

Number of Policies
Premium Income (¥ millions)
Claims Paid (¥ millions)2009
850,502¥29,512¥7,8982010
1,018,750¥34,128¥9,604CO-OP Insurance i.i.

2006

335,092

2006

2007

343,9622007

57,602
48,113

2009

372,3712010

61,396

2008

357,613

2009

585,154

As of March 20,

2010
5,676,134¥109,448¥45,895

CO-OP Fire Insurance

2008

443,8232010

382,262

34,20922,243As of March 20,

2009

2010

As of March 20,

2009

Number of Policies

372,371382,262

Number of Policies

34,20922,243

Premium Income (¥ millions)¥5,869¥6,157

Premium Income (¥ millions)¥5,329¥3,651Claims Paid (¥ millions)¥1,130¥1,024Claims Paid (¥ millions)¥6,313¥6,016

As of March 20,

2009

2010

Number of Policies

15,241

23,793

Premium Income (¥ millions)¥1,765¥2,962Claims Paid (¥ millions)

¥111

¥304

2010

CO-OP Insurance New i.i.
2009
2010

15,241
23,793

Japan CO-OP Insurance Consumers’ Co-operative Federation

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Balance Sheet
As of March 20,

Thousands of
U.S. dollars*2

Millions of yen*1

2009

2010

2010

¥4,626¥64,463$712,298

Money trust

11,596

128,132

Securities

63,875705,801

Lones

19

209

Reinsurance account

151

1,668

1,553

6,969

77,005

62

379

4,187

Other assets

1,116

2,133

23,569Fixed assets for business use

20,006

23,613260,917

3

159

1,756

Deferred tax assets

358

5,304

58,607

Deferred assets

664

436

4,817

¥28,390¥179,102$1,979,027¥3,530¥98,026$1,083,160

179

1,977

3,081

34,044413

4,563

AssetsCash and time deposits

Subcontracting account
Other mutual insurance assets

Investment in affiliates etc.

Total Assets

Liabilities
Policy reserves
Reinsurance account
Subcontracting account

948

Contract account
Outstanding outlays

417

1,083

11,966

Other liabilities

925

6,265

69,226

Allowance

11

641

7,082

300

3,314

¥5,833¥109,992$1,215,381¥22,556¥67,519$746,066

1,590

17,569Price fluctuation reserves
Total Liabilities

CapitalMembership Capital
OthersTotal Capital¥22,556¥69,110$763,646

Total Liabilities and Capital¥28,390¥179,102$1,979,027*1. Yen Amounts are rounded down to the nearest ¥1 million.
*2. U.S. dollar amounts are converted, for convenience only, at ¥90.50 = US$1.00, the rate prevailing on March 19, 2010, and rounded
down to the nearest $1 thousand.
*3. Our business for the 2009 started between March 1st ended March 20th, 2009, as CO-OP Insurance business was divided from JCCU
in 2009.
Total assets of JCCU and JCIF for the 2009 is ¥152,783 millions.
Total liabilities of JCCU and JCIF for the 2009 is ¥74,791 millions.

14 Japan CO-OP Insurance Consumers’ Co-operative Federation

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Income Statement
For the years ended March 20,

Thousands of
U.S. dollars*2

Millions of yen*1

2009

2010

2010

¥1,553¥138,613$1,531,635

410

2,586

28,574

Investment income

5

898

9,922

Other ordinary income

24

237

2,618

Total ordinary income¥1,994¥142,335$1,572,762¥654¥56,873$628,430

Provisions for policy reserves

40

11,829130,707

Investment expenses

—

122

1,348

Operating expenses

916

40,298445,281

Other ordinary expenses

62

287

3,171

Total ordinary expenses¥1,674¥109,410$1,208,950¥320¥32,924$363,801

Extraordinary income

—

¥5

$55

Extraordinary loss

—

300

3,314

Surplus before taxes¥320

32,629360,541

Corporate and other taxes

522

4,375

48,342Adjustment of corporate and other taxes–358–1,930–21,325—

26,169289,160¥156¥4,014$44,353—¥124$1,370¥156¥4,139$45,734

Ordinary Income:Premium and other income
Reversal of allowance for reserve of
insurance policy

Ordinary Expenses:
Claims paid

Ordinary Surplus
Extraordinary Profit and Loss:

Transfer to resreve for claim rebate
Net surplus
Net surplus for the period
Unappropriated surplus for the period*1. Yen Amounts are rounded down to the nearest ¥1 million.
*2. U.S. dollar amounts are converted, for convenience only, at ¥90.50 = US$1.00, the rate prevailing on March 19, 2010, and rounded
down to the nearest $1 thousand.
*3. Our business for the 2009 started between March 1st ended March 20th, 2009, as CO-OP Insurance business was divided from JCCU
in 2009.
Total ordinary income of JCCU and JCIF for the 2009 is ¥106,735 millions.
Total ordinary expenses of JCCU and JCIF for the 2009 is ¥86,584 millions.

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Solvency Margin Ratio and others
Solvency Margin Ratio*

Millions of yen*1

Thousands of
U.S. dollars*2

2010

2010

Total solvency margin*4 ①¥95,299$1,053,027

Total risks ②19,379214,132

Solvency margin ratio = ①÷( ②×1/2)×100

983.5%

983.5%

3(As of March 20)*1. Yen Amounts are rounded down to the nearest ¥ 1 million.
*2. U.S. dollar amounts are converted, for convenience only, at ¥ 90.50 = US$1.00, the rate prevailing on March 19, 2010, and rounded
down to the nearest $1 thousand.
*3. The above ratio is calculated on the basis of the solvency margin ratio described in the Countermeasures for Individual Issues related
to the Protection of cooperative insurance contractors, which was put together at Consumer’s cooperative insurance round-tableconference composed of members from Japan Cooperative Insurance Association Incorporated.
*4. The total solvency margin is limited to what can be divided in the CO-OP Insurance enterprise.
*5. Our business for the 2009 started between March 1st ended March 20th, 2009, as CO-OP Insurance business was divided from JCCU
in 2009. We diid not work out the ratio of 2009.

Breakdown of Basic Proﬁt

Thousands of
U.S. dollars*2

Millions of yen*1(As of March 20)

2009

2010

2010

Basic proﬁt *4¥356¥37,185$410,8832

Investment proﬁt *3

0

335

3,701

Mortality proﬁt *3

766

36,029398,110

Expense proﬁt

-410

55

607

*3

*1. Yen Amounts are rounded down to the nearest ¥ 1 million.
*2. U.S. dollar amounts are converted, for convenience only, at ¥ 90.50 = US$1.00, the rate prevailing on March 19, 2010, and rounded
down to the nearest $1 thousand.
*3. Deﬁnitions are as follows:
Investment proﬁt : Differential between the projected investment return (expected yield) and the actual investment return.
Mortality proﬁt : Differential between the projected insurance payment (expected mortality rate) and actual claims for payment.
Expense proﬁt : Differential between the projected operational expenses (projected operational expense ratio) and actual operationa
expenses.
*4. Basic proﬁt is calculated by excluding capital gain/loss, such as sales gain or loss on marketable securities, and extraordinary gain/loss,
such as provision for contingency reserves, from recurring surplus. It is the index that shows the basic period income generated fromthe mutual aid enterprise.

Equity Capital Ratio

Millions of yen*1

Thousands of
U.S. dollars*2(As of March 20)

2009

2010

2010

① Equity capital¥22,556¥69,110$763,646

35

15,682

173,281

22,592

84,792936,928

28,390179,102

1,979,027

Equity capital ratio 【= ① / ③】

79.5%

38.6%

38.6%

Revised equity capital ratio*4【=( ①＋② )/ ③】

79.6%

47.3%

47.3%

② Contingency reserves

Revised equity capital 【= ①＋②】
③ Total assets*3*1. Yen Amounts are rounded down to the nearest ¥ 1 million.
*2. U.S. dollar amounts are converted, for convenience only, at ¥ 90.50 = US$1.00, the rate prevailing on March 19, 2010, and rounded
down to the nearest $1 thousand.
*3. Equity capital ratio = Equity capital ÷ Total assets*4. Revised equity capital ratio = Revise equity capital ÷ Total assets

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Cooperation with Other Associations
lNational Federation of Workers and Consumers Insurance Cooperatives (ZENROSAI)ZENROSAI, a JCIF member, is the largest federation among the mutual insurance cooperatives approved by
the Co-op Law. JCIF works with ZENROSAI to reinforce the CO-OP insurance business.

lJapan Reinsurance Federation of Consumers’ Cooperatives (SAIKYOSAIREN)
JCIF focuses on risk reduction by ceding a portion of its directly underwritten mutual insurance to NIHONSAIKYOSAIREN reinsurance.
* Reinsurance means a transfer of a portion or all of the mutual insurance liability underwritten by a direct insurer to a re-insurer. In
accordance with a reinsurance policy, the direct insurer pays a reinsurance premium, and the re-insurer shall pay the benefits in the caseof accident occurrence.

lJapan Cooperative Insurance Association Incorporated (JCIA)

Founded in 1992, JCIA has conducted the following activities with the purpose of “contributing to stable lives
and improved welfare for local farmers, foresters, fishermen and other workers in addition to focusing on
sound development of mutual insurance business by the co-operative associations.”
1. Provide members with necessary information and hold JCIA seminar etc.
2. Promote public relations and consulting to enhance the social recognition of cooperative insurance
business.
3. Publish the “Kyosai to Hoken”(Cooperative and Commercial Insurance) in Japanese,the “JCIA Newsletter”
in English and the “Fact Book” in English and Japanese.
4. Provide training for officers and staff of cooperative insures.
5. Foster cooperation and relationships with overseas cooperative insures and organizations.
6. Promote reserch through the “Reserch Committee on Cooperative Insurance Theory”.
JCIF focuses on the alliance with JCIA, making efforts to help reinforce the societal roles of mutual
insurance associations.

lInternational Cooperative and Mutual Insurance Federation (ICMIF)

Inaugurated in 1922 as the Insurance Committee of the International Co-operative Alliance (ICA), it has
served as a base for today’s ICMIF. Over 216 organizations
with approximately one-third of the membership in Europe, afurther third in the Americas and the remainder representing Asiaand Oceania, Africa and the Middle East were members of the
ICMIF by 2009. To benefit the development of mutual insurance
associations, ICMIF has conducted various researches, studies
and development, working as an intermediary for reinsurance
transactions between the members or non-members. JCIF joined
ICMIF on March 21, 2009.

Profile of JCIFName

JCIF (Japan CO-OP Insurance Consumers’ Co-operative Federation)

Head office

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

Established

November 5th, 2008

Number of Member Co-ops

164 (as of March 21st, 2009)

Detail of operations

CO-OP Insurance Business / Promotion of Life-Planning Activites

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