Year Ended March 20, 2016

ANNUAL REPORT

2016

Japan CO-OP Insurance Consumers' Co-operative Federation

ANNUAL REPORT 2016
Year Ended March 20, 2016

CONTENTS
Visions of CO-OP Insurance

01

Financial Highlights

02

Message from the President

03

Topics of FY201504

Outline of the JCIF

05

Types of CO-OP Insurance

07

Payment of Claims

08

Risk Management and Compliance System

09

Activities

11

Fiscal 2015 CO･OP Insurance Business Overview

13

Balance Sheet

15

Income Statement

16

Solvency Margin Ratio and Others

17

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

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

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

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

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

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

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

Japan CO-OP Insurance Consumers' Co-operative Federation

01

Financial Highlights
Millions of
U.S. dollars*2

Millions of yen*1

For the years ended March 20,

2015

2016

2016

Ordinary income¥ 200,351¥ 206,560$ 1,858

Ordinary expenses

154,711

158,285

1,423

Ordinary surplus

45,64048,275434

9,215

10,37693

Total assets

301,774

329,601

2,965

Total liabilities

195,915214,336

1,928

Total capital

105,858

115,265

1,036

Number of policies total

8,236,619

8,379,256—

Number of policies (diredt insurance)

7,799,501

7,948,755—¥ 115,099¥ 117,446

1,056

1,385.9

1,164.6—

Net surplus

As of March 20,

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

Solvency margin (%)*1. Yen amounts are rounded down to the nearest ¥1 million.
*2. U.S .doller amounts are converted, for convenience only, at ￥111.16=US$1.00, the rate prevailing on March 20,2016, and rounded
down to the nearest $1 million.

Number of policies (all total)

Amount insured (direct insurance)(thousands)(¥ billions)

9,000

12,000

8,000

7,974

8,106

8,236

8,379

10,851

11,13011,28911,5092014

2015

11,744

7,734

10,000
7,000
6,000

8,000

5,000
6,000
4,000
3,000

4,000

2,000
2,000
1,000
0

2012

2013

2014

2015

2016
(As of March 20)

02

Annual Report 2016

0

2012

2013

2016
(As of March 20)

Message from the President
The 2016 Kumamoto earthquakes, which occurred in April 2016, caused devastating damage mainly to
Kumamoto and Oita prefectures, and claimed many precious lives. I would like to sincerely pray for the reposeof the souls of those who passed away due to the earthquakes, and express my heartfelt sympathy to all thoseaffected.
Let me give you an outline of our operations in fiscal 2015; the number of CO-OP Insurance policyholders
exceeded 8.37 million by the end of the fiscal year. During the year, we paid out a total of 62.9 billion yen in
insurance benefits (100.0% of the previous fiscal year) to 1.3 million insurance claimants. The year 2015 also
marked the fifth anniversary of the Great East Japan Earthquake. Concerning the earthquake, we have so far
paid out 1.64 billion yen in insurance benefits to 2,900 claimants, and 2.02 billion yen in disaster relief funds to
73,000 policyholders. We will continue to devote all our efforts to making insurance payments up to the very
last single earthquake-affected policyholder. Moreover, CO-OP Insurance has been rated as the top insurer for
three consecutive years since fiscal 2013 in the life insurance category of the Japanese Customer Satisfaction
Index provided by the Service Productivity & Innovation for Growth (SPRING) of the Japan Productivity Center.
Fiscal 2015 was the final year of the three-year CO-OP Insurance Medium-term Business Plan 2015, on our
way toward achievement of CO-OP Insurance Long-term Vision 2020. During the year, we cooperated withmember Co-ops to further strengthen our organizational system, and strived for higher business quality andstructural reforms in costs through various measures, including review of the application procedures for
insurance policies and development of a new system for supporting members. We also reviewed our CO-OP
Insurance products from both a medium- and long-term perspective and devised the next medium-term plan.
In fiscal 2016, the first year of CO-OP Insurance Medium-term Business Plan 2018, we will implement
measures to tackle the important challenges identified in the medium-term plan. To create more helpful
CO-OP Insurance for the lives of our member households, we will strive to revise our insurance products, andcontinue our efforts to strengthen our organizational system, raise our business quality, bring down costs,
improve policies for the entire insurance business, and expand our business continuity initiatives, includingones to execute our business continuity plan (BCP).
This annual report mainly covers CO-OP Insurance’s operations in fiscal 2015. I hope that this report will help
you deepen your understanding of our business and CO-OP insurance products.
We are determined to continuously concentrate all our energies on
ensuring that our member households enjoy safe and secure
lives, through our operations conducted in close cooperation
with Co-ops’ retailing and welfare businesses, and otherCo-op activities. We look forward to your continued
understanding and support for CO-OP Insurance.

Toshiaki Sato
President
Japan CO-OP Insurance Consumers’
Co-operative Federation (JCIF)Japan CO-OP Insurance Consumers' Co-operative Federation

03

Topics of FY2015
Changes in the number of policyholders.
In 1984, CO-OP Insurance Tasukeai started providing an insurance coverage of one million yen for death and of
20,000 yen for inpatient care for a premium equivalent to the price of a cup of coffee, adding term life insurance
named i.-Plus in 2000 and whole life insurance named Zutto-i. in 2011. As a result of these efforts, the number ofpolicyholders in direct insurance contracts with us reached 7.94 million people in March 2016. The spirit ofmutual cooperation for supporting each other’ s future has been carried on without change since the launch of
CO-OP Insurance.

Changes in the number of policyholders
8

CO-OP Insurance has increased its
helpfulness step by step throughcooperation among members.

7

6.99
6.26

6

7.30

7.79
7.53 7.66

7.94

6.44

5.38
4.89

5

4.01

4

3.27
2.77

3

2.05

2
1

2.35

1.47
1.09
(million people)

0.13
0

1984

1990

1994

1995

1997

1998

1999

2000

2002

2004

2005

2007

2008

2010

2011

2012

2013

2014

2015
(Fiscal year)

We have been rated as the top life insurance provider
in customer satisfaction for three consecutive years.
CO-OP Insurance won first place in the life insurance category of the FY 2015 Japanese Customer Satisfaction
Index (JCSI) published by the Service Productivity & Innovation for Growth (SPRING) of the Japan Productivity
Center (a public interest incorporated association) for the second straight year.
The survey on which the index is founded is one of the mostextensive customer satisfaction surveys, which is conducted fivetimes a year based on over 120,000 customers’ opinions on
approximately 400 companies/brands from about 30 businesscategories every year.

04

Annual Report 2016

Outline of the JCIF
JCIF, Co-op and JCCU
Our organization is a union of 148 consumer cooperative societies from across the nation. Although eachmember Co-ops 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 business previously
conducted by our member Co-ops.

Co-op members
Member co-ops

Regional Co-ops, Co-op Associations etc.
Promotion support of product supply, social activities etc.
JCCU

JCIF

Improvement and development of CO-OP brand products,
supplying business etc.

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

Welfare business etc.
Support activities and communication with foreign CO-OPs.
Participation in international meetings etc.

Roles of Member Co-ops and JCIFThe JCIF will work to enhance our

Co-op members, Policyholders

relationship with member Co-ops by
f ul filling t he re quirement s of our
specified role and acting cooperatively

Window for thesubscription procedure

to achieve our common goals.

Member Co-ops

Contract of
CO-OP Insurance

Cooperative
business

JCIF

Member Co-op
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 thedual roles of member
Co-op and JCIF.
Japan CO-OP Insurance Consumers' Co-operative Federation

05

Structure of JCIFAs of June 21,2016

Product Development Div.
Accounting Div.

Administrative andDevelopment
Dept.

Asset Management Div.
Personnel Planning Div.
General Affairs Div.

GeneralAssembly

Management Planning Div.
Information and Communication Div.

Joint Management
Dept.

Risk Management Div.
Legal and Compliance Div.

Board
of
Auditors

Customer Satisfaction Promotion Div.

Education and Learning Div.
Promotion plannnig Div.

Board
of
Directors

Publicity Planning Div.
Member Support Div.

Sales Promotion
Dept.

Hokkaido and Tohoku Area Promotion Div.
Central Area Promotion Div.
Kansai Area Promotion Div.
Cyuushikoku Area Promotion Div.
Kyusyu Area Promotion Div.

Clerical reform Div.
Claims Handling First Div.
Claims Handling Second Div.
Claims Planning Div.

Clerical Dept.
Contract Clerical Div.
Call Center Management Div.
Information Systems Div.

Clerical Reforms

IT Promotion Div.
Internal Auditing Div.

06

Annual Report 2016

Types of CO-OP Insurance
CO-OP Insurance
Tasukeai

CO-OP Insurance
i.-Plus— Medical Insurance— Term Life InsuranceThis insurance provides comprehensive coverage forThis insurance simply provides cover for death, which

outpatient care due to accident, hospitalization,

can be added cancer, hospitalization, and surgery ofsurgery, death, disability members’ death of thethe insured. The maximum sum insured is ¥30 million

insured, and damage to residences caused by fire orin death benefits for a reasonable premium. Added

other perils. It is designed to meet the Co-op

coverage is available by combining i-Plus withmembers’ demands for coverage that is essential to

Tasukeai. The contract term is 10 years and thetheir daily lives at a reasonable premium.

premium varies according to the age and sex of the

There are four plans for women, for children,
mainly to cover medical, and uniform medical andinsured.
Coverage may be extended until the member

death cover.

reaches the age of 85.

CO-OP Insurance
Zutto-i.

CO-OP Life Insurance
New i.i.

— Whole life Insurance— Life InsuranceThis

insurance

provides

cover

for

lifetime

hospitalization, surgery and death.

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

There are 2 types. One is whole life insurance

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

renewable after five years with the option of a rebate

insurance which covers lifetime hospitalization andafter the five years. Coverage may be extended until

surgery.

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

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

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

Japan CO-OP Insurance Consumers' Co-operative Federation

07

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 thenecessary materials. CO-OP Insurance values swift and efficient payment procedures from the viewpoint ofpolicyholders. For example, basic information is printed on payment claims documents in advance, and someprocedures are simplified depending on the claim detail and amount.
CO-OP Insurance shortens the time from the reception of a claims request to payment in order to enhance
policyholder satisfaction.

Flow of Claims

1 Reporting Occurrences

CO-OP
Insurance
Center(Call Center)

2

JCIF(Claim Payment Dept.)

Sending out
Documents for Claims

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

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

08

Annual Report 2016

Risk Management and Compliance System
Risk Management System
In pursuing sound management of the mutual insurance business, JCIF makes efforts to identify risks andimplement proper risk management.
Risk associated with the mutual insurance business include the following: Business risks; Project development
risks and insurance underwriting risks; Asset management risks; Liquidity risks; ALM risks; Office work risks andSystem risks, etc.
JCIF manages the risks which we have, and monitors or controls. Each risk is monitored or controlled by the
responsible department.

Business risks
Risks related to the managerial strategic decision and the flaw or external factor of management system in thegeneral management. It will suffer the big impact when it becomes obvious.
We manage to provision the process of appraisal, understand the risk etc.

Product development risks and insurance underwriting risks
Risks that stem from fluctuations in the incidence rate of accidents covered beyond the forecasts made at thetime of setting the premium.
We manage these risks with due consideration for business stability.

Asset management risks
Risks of suffering a loss in the value of assets held due to fluctuations in interest rates, stock prices, foreignexchange rates, etc. or deterioration in the financial position of financial institutions with which we conducttransactions.
We ensure appropriate management of these risks based on a set of rules including the Rules for AssetManagement and the Regulations for Managing Asset Management Risks, which we established in accordancewith the Ordinance for Enforcement of the Consumer Cooperatives Act.

Liquidity risks
Risks that a given security or asset cannot be traded quickly enough in the market to prevent a loss (or make therequired profit).
We manage this risk to keep enough cash flow and monitor the risk or the cash flow regularly.

ALM risks
Risks incurred when asset and liabilities term are mismatched, forcing the company to buy and sell assets, or totake on liabilities, when conditions are unfavorable.
We manage to secure the founds corresponding to liabilities by the setting a fair guaranteed yields, themonitoring of interest surplus and loss and so on.

Office work risks and System risks
Office work risks are the risks of suffering a loss due to officers or staff executing inaccurate administrative
work, causing an accident, or committing a fraud.
System risks are the risks of suffering a loss due to flaws in our computer system including failure 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.

Japan CO-OP Insurance Consumers' Co-operative Federation

09

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

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

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

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

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

4. When a claim is made, every effort will be made to ensure swift settlement.
5. Recognizing the importance of protection of privacy, contract information will be managed
stringently and appropriately.
6.

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

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

● Complaints we received at the consultation center in FY2015
We had 197,158 complaints and requests in fiscal 2015.
Viewing the opinions we received as representing the voice ofour policyholders, we are striving to improve the problems.

Others37.0%

Requests 8.5%

Thanks50.5%Complaints 4.0%

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

10

Annual Report 2016

Activities
Life-Planning Activities
Life-Planning activities enable Co-op members to learn about money
matters in their lives. In the principle topic of Revising Coverage,
members gain the capability to independently select insurance that isreally necessary.
As an integral part of Life-Planning activities, JCIF is training
members and Co-op staff to be Life-Plan-Advisor (LPA). Participants of
LPA courses learn about life planning, insurance, taxation and financein comprehensive lectures held by JCIF in order to become LPA. As of
March 20, 2016 there are 3,774 advisors active at member Co-ops
across Japan.

Co-op carries out the following Life-Planning activities:
Lectures on Revising Coverage
Training sessions on revising lifestyles
Learning activity in each region
Life-planning lectures
Individual consulting
Life-Planning Humorous poem “Senryu”● Developments in life-Planning Activities
Life-Planning activities have now become firmly established as Co-op activities. In fiscal 2015, more than 45,000
people in total participated in the activities, principally in revision of coverage.

Participants in Life-planning Activities

Number of participants

25,00023,001
Fiscal 2014

21,064

Fiscal 2015

20,00015,00010,0008,310 7,968

7,486

5,000

3,731
2,414

3,657
1,293

0

LectureTraining
sessions

Training
session forchildren

7,898

Learning
activity

1,067

Indivisualconsulting

1,295 1,492“Senryu”
project

OthersJapan CO-OP Insurance Consumers' Co-operative Federation

11

Health Improvement Activities
A fundamental issue for CO-OP Insurance activities is the improvement of the health and welfare of people. Fromthe position of assisting members and policyholders to improve their health, JCIF has installed automatic bloodpressure 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 345 Co-op stores throughout
Japan. Since managing blood pressure is paramount for preventing all lifestyle-related illness, it is essential toconsistently measure blood pressure from day to day. Members are welcome to test their blood pressure level
while shopping, making the devices very useful for managing their day to day health.

(2) CO-OP Insurance Health Call Center
JCIF offers a free phone consultation service made available to
Tasukeai, i-Plus and New i.i. policyholders, JCIF contracts
specialist counselors including doctors and nurses fromgovernmental corporation to give advice on health, treatment
and care-giving as well as instruction on which medial facility
to use. During fiscal 2015 the call center fielded 40,420 calls
for advice.

Social Contribution Activities
In fiscal 2015, we started offering subsidies to organizations engaged in the activities specified below as a new
initiative to contribute to society. Each eligible organization was provided with a subsidy in the amount of around
300,000 to 1 million yen, with the total amount to be paid out in fiscal 2015 set at 18 million yen.

To be eligible, organizations must be engaged in one of the following activities,
each of which is based on the values shared by JCIF
1. Activities aimed at protecting people’s
livelihoods and helping them resolve
everyday issues

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

3. Activities aimed at supporting the livesof women and children

12

Annual Report 2016

Fiscal 2015 CO･OP Insurance Business Overview
Overview of the financial results of the CO-OP Insurance business is as follows:

End of year policyholders totaled

8,379,256

When broken down by product, Tasukeai policyholders decreased 0.1% from the previous year to 5,885,847,
i.-Plus policyholders increased 5.1% to 1,692,247, Zutto-i. policyholders increased 23.4% from the previous year to370,661, CO-OP Fire Insurance policyholders increased 1.2% to 401,654, and CO-OP Insurance new-i.i.
policyholders decreased 6.2% to 28,847.

Insurance in force totaled¥11,744 billion

CO-OP Insurance has total policies of ¥ 11,744 billion of direct insurance in force, an increase of 2.0% on theprevious year.

Premiums totaled¥175 billion

CO-OP Insurance has total premiums of ¥ 175 billion, an increase of 2.9% on the previous year.

Payments

1,304,245 • ¥62,951 million

CO-OP Insurance made a total of 1,304,245 payments, an increase of 0.1% on the previous year.
CO-OP Insurance has made a total of ¥ 62,951 million in payments for insurance claims, an increase of 0.0% on theprevious year.
* Refer to Page 8, about direct and indirect insurance.

Asset Management
Investment Assets
Foreignbond

Stocks

0.1 %

7.3 %

Others

3.5 %

Cash

19.9 %
Public andcorporatebond42.0 %

Negotiable
deposit27.3 %

Japan CO-OP Insurance Consumers' Co-operative Federation

13

Sectral CO-OP Insurance Business Overview

CO･OP Insurance Tasukeai

CO･OP Insurance i.-Plus

2012

5,911,867

2012

2013

5,937,255

2013

2014

5,901,123

2014

2015

5,889,724

2015

2016

5,885,847

2016

1,340,777
1,444,456
1,529,839
1,609,576
1,692,247

As of March 20,

2015

2016

As of March 20,

2015

2016

Number of Policies

5,889,724

5,885,847

Number of Policies

1,609,576

1,692,247

Premium Income（¥millions)¥ 107,239¥ 106,759

Premium Income（¥millions)¥ 50,729¥ 53,545

Claims Paid（¥millions)¥ 44,872¥ 43,510

Claims Paid（¥millions)¥ 16,422¥ 17,324

CO･OP Insurance Zutto-i.
2012

47,488

2013

154,441

2014

235,673
300,2012015

370,661

2016

CO･OP Insurance New i.i.

2015

2016

300,201

370,661

Premium Income（¥millions)¥ 12,506¥ 15,197

Claims Paid（¥millions)¥ 1,643¥ 2,116

CO･OP Fire Insurance

2012

36,255

2012

396,3062013

35,685

2013

401,8092014

406,0072015

406,355

2016

401,654

2014
2015
2016

33,22730,763
28,847

As of March 20,

2015

2016

As of March 20,

2015

2016

Number of Policies

30,763

28,847

Number of Policies

406,355

401,654

Premium Income（¥millions)¥ 4,657¥ 4,391

Premium Income（¥millions)¥ 4,799¥ 4,623

¥ 714

¥ 669

Claims Paid（¥millions)¥ 1,181¥ 947

Claims Paid（¥millions)14

As of March 20,

Number of Policies

Annual Report 2016

Balance Sheet
As of March 20,

Thousands of
U.S. dollars *2

Millions of yen*1

Assets

2015

2016

2016

Cash and time deposits¥ 47,667¥ 58,583$ 527,015

Money trust

29,536

36,792

330,982

Securities

191,831201,775

1,815,176

0

−

−

166

56

503

6,108

6,268

56,387

Contract account

330

310

2,788

Other mutual insurance assets

114

116

1,043

Advance payments

6

19

170

Outstanding earnings

207

221

1,988

Other assets

733

1,135

10,21011,88910,306

92,713

250

270

2,428

12,92913,746123,659−−−¥ 301,774¥ 329,601$ 2,965,104¥ 179,136¥ 197,594$ 1,777,563

177

142

1,277

3,914

3,966

35,678

0

0

0

396

137

1,232

Outstanding outlays

1,875

1,905

17,137

Other

7,895

7,083

63,718

887

994

8,942

1,632

2,510

22,580¥ 195,915¥ 214,336$ 1,928,175¥ 104,422¥ 114,038$ 1,025,890

1,436

1,226

11,029Total Capital¥ 105,858¥ 115,265$ 1,036,928

Total liabilities and Capital¥ 301,774¥ 329,601$ 2,965,104

Loans
Reinsurance account
Subcontracting accountFixed assets for business use
Investment in affiliates etc.
Deferred tax assets
Deferred assets
Total assets

Liabilities
Policy reserves
Reinsurance account
Subcontracting accountContract account
Other insurance liabilities

Allowance
Price fluctuation reserves
Total liabilities

CapitalMembership capital
Others

*1. Yen amounts are rounded down to the nearest ¥1 million.
*2. U.S. dollar amounts are converted, for convenience only, at ¥ 111.16 = US$1.00, the rate prevailing on March 20, 2016, and rounded
down to the nearest $1 thousand.

Japan CO-OP Insurance Consumers' Co-operative Federation

15

Income Statement
For the years ended March 20,

Ordinary Income:Thousands of
U.S. dollars *2

Millions of yen*1

2015

2016

2016

¥ 171,585¥ 176,296$ 1,585,966

Reversal of allowance for reserve of
insurance policy

27,19028,566

256,980

Investment income

1,329

1,401

12,603

Other ordinary income

245

296

2,662

Total ordinary income¥ 200,351¥ 206,560$ 1,858,222¥ 92,490¥ 93,817$ 843,981

14,167

14,352

129,111

Investment expenses

48

64

575

Operating expenses

47,94749,989449,703

Other ordinary expenses

57

61

548

Total ordinary expenses¥ 154,711¥ 158,285$ 1,423,938

Ordinary Surplus¥ 45,640¥ 48,275$ 434,283

−

0

$0

¥ 424

¥ 889

$ 7,997¥ 45,215¥ 47,386$ 426,286

Corporate and other taxes

5,593

5,073

45,636

Adjustment of corporate and other taxes

-671

-735

-6,612

Transfer to resreve for claim rebate

31,07832,672

293,918

Net surplus

9,215

10,376

93,342

413

467

4,201

Reversal of reserve for start-up business

−

−

−

Reversal of reserve for office system maintenance

−

326

2,932

174

396

3,562

9

4

35

¥ 9,813¥ 11,570$ 104,084

Premium and other income

Ordinary Expenses:
Claims paid
Provisions for policy reserves

Extraordinary Profit and Loss:
Extraordinary income
Extraordinary loss
Surplus before taxes

Net surplus for the period

Reversal of reserve for business
continuity planning
Reversal of reserve for catastrophe solatium
Unappropriated surplus for the period*1. Yen amounts are rounded down to the nearest ¥1 million.
*2. U.S. dollar amounts are converted, for convenience only, at ¥ 111.16 = US$1.00, the rate prevailing on March 20, 2016, and rounded
down to the nearest $1 thousand.

16

Annual Report 2016

Solvency Margin Ratio and Others
Solvency Margin Ratio *3

Thousands of
U.S. dollars *2

Millions of yen*1

As of March 20,
Total solvency margin *4 ①

2015

2016

2016

¥ 141,509¥ 155,623$ 1,399,991

26,073

26,724240,4101085.5%1164.6%1164.6%

Total risks ②
Solvency margin ratio = ① ÷ (②×1 / 2)×100*1. Yen Amounts are rounded down to the nearest ¥1 million.
*2. U.S. dollar amounts are converted, for convenience only, at ¥ 111.16 = US$1.00, the rate prevailing on March 20, 2016, and rounded
down to the nearest $1 thousand.
*3. The solvency margin rate of JCIF is calculated based on the Ordinance for Enforcement of Co-op law as determined by the Ministryof Health, Labour and Welfare.
Therefore, it is incommensurable with the solvency margin rate of life insurance companies and nonlife insurance companies.
According to the Ministry of Health, Labour and Welfare, the rate needs more than 200%.
*4. The total solvency margin is limited to what can be divided in the CO-OP Insurance enterprise.

Breakdown of Basic Profit

Thousands of
U.S. dollars *2

Millions of yen*1

As of March 20,

2015

2016

2016

Basic profit *4¥ 49,158¥ 50,381$ 453,229

Investment profit *3

89

79

710

Moratality profit *3

47,70649,738447,445

Expense profit *3

1,361

563

5,064

*1. Yen Amounts are rounded down to the nearest ¥1 million.
*2. U.S. dollar amounts are converted, for convenience only, at ¥ 111.16 = US$1.00, the rate prevailing on March 20, 2016, 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

Thousands of
U.S. dollars *2

Millions of yen*1

As of March 20,

2015

2016

2016

① Equity capital¥ 105,858¥ 115,265$ 954,812

36,78740,070331,925

142,646

155,335

1,286,737¥ 301,774¥ 329,601

2,730,293

35.1%

35.0%

35.0%

47.3%

47.1%

47.1%

② Contingency reserves
Revised equity capital〔=①+②〕③ Total assets
Equity capital ratio *3〔=①/③〕

Revised equity capital ratio *4*1. Yen Amounts are rounded down to the nearest ¥1 million.

*2. U.S. dollar amounts are converted, for convenience only, at ¥ 111.16 = US$1.00, the rate prevailing on March 20, 2016, 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
Japan CO-OP Insurance Consumers' Co-operative Federation

17

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

Head office
4-1-13 Sendagaya, Shibuya-ku, Tokyo 151-0051, JAPAN

Established
November 5th, 2008

Number of Member Co-ops
148 ( as of March 20th, 2016 )Detail of operations
CO-OP Insurance Business

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

Japan CO-OP Insurance Consumers'
Co-operative Federation
4-1-13 Sendagaya, Shibuya-ku, Tokyo 151-0051, JAPANTEL : +81-3-6836-1320
FAX: +81-3-6836-1321
http://coopkyosai.coop