For a Better Tomorrow

Year Ended March 20, 2017

ANNUAL REPORT

2017

Japan CO-OP Insurance Consumers' Co-operative Federation

ANNUAL REPORT 2017

Year Ended March 20, 2017

CONTENTS
Visions of CO-OP Insurance

01

Financial Highlights

02

Message from the President

03

Topics of FY201604

Outline of the JCIF

05

Types of CO-OP Insurance

07

Payment of Claims

08

Risk Management and Compliance System

09

Activities

11

Fiscal 2016 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 JCIF.

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

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

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

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

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

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

Japan CO-OP Insurance Consumers' Co-operative Federation

01

Financial Highlights
JPY Millions*1

For the years ended March 20,

USD Millions*2

2016

2017

2017

Ordinary income¥ 206,560¥ 213,137$ 1,878

Ordinary expenses

158,285

164,750

1,451

Ordinary surplus

48,27548,387426

Net surplus

10,376

10,38491

Total assets¥ 329,601¥ 358,004$ 3,154

Total liabilities

214,336

233,018

2,053

Total capital

115,265

124,986

1,101

Number of policies total

8,379,256

8,521,919—

Number of policies ( JCIF products only)

7,948,755

8,095,128—¥ 11,744¥ 11,967$ 105,454

1,164.6

1235.6—

As of March 20,

Amount insured ( JCIF products 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 ¥113.48=US $1.00, the rate prevailing on March 20,2017, and rounded
down to the nearest $1 million.

Number of policies (all total)

Amount insured (JCIF products only)(thousands)(¥ billions)

9,000

8,000

7,974

8,106

8,236

8,379

8,521

12,000

11,13011,28911,5092014

2015

11,744

11,967

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

2013

2014

2015

2016

2017
(As of March 20)

02

Annual Report 2017

0

2013

2016

2017
(As of March 20)

Message from the President
To pay out insurance benefits and relief money to victims of devastating disasters, including the Kumamoto
earthquakes in April 2016, the earthquake that hit the central part of Tottori Prefecture in October in the same
year, and the torrential downpour mainly in north Kyushu in July 2017, we have devoted our efforts to visiting
our policyholders in cooperation with Co-ops in the disaster-affected areas and the rest of Japan. As a result, theamount of relief money that we have paid out to victims of these devastating disasters by the end of fiscal 2016
totals 223 million yen to 9,240 households affected by the Kumamoto earthquakes and 6.08 million yen to 496
households affected by the earthquake in central Tottori. We have earned gratitude from policyholders who
received the payment. We would like to show our deep gratitude and respect to those who cooperated with us.
Let me give you an outline of our operations in fiscal 2016; the number of CO-CP Insurance policyholders
exceeded 8.52 million by the end of the fiscal year. During the fiscal year, we paid out a total of 64.4 billion yen
in insurance benefits (102.3% of the previous fiscal year) to 1.3 million insurance claimants. Additionally, CO-OP
Insurance was rated as the top insurer in the life insurance category of the Japanese Customer Satisfaction Index(JCSI) provided by the Service Productivity & Innovation for Growth (SPRING) of the Japan Productivity Center.
We have achieved this top rating for four consecutive years.
Fiscal 2016 was the first year of the three-year CO-OP Insurance Medium-term Business Plan 2018, on our way
toward achievement of CO-OP Insurance Long-term Vision 2020. During the fiscal year, we cooperated withmember Co-ops to further strengthen our organizational system for promotion, while renewing the plan of
Tasukeai for children and launching a special policy option for advanced medical care, for which we had received
a large number of requests. We have also striven to address important issues, by preparing to develop an
insurance service (Platinum 85) that will enable those aged 65 whose Tasukeai insurance has expired to continue
their insurance contracts, and by developing our capacity to promote CO-OP Insurance while providing member
Co-ops with painstaking assistance according to their conditions.
In fiscal 2017, the second year of the CO-OP Insurance Medium-term Business Plan 2018, we will implement
various measures to provide more valuable help to member households: launching the service of Platinum 85;
preparing for further product renewal; increasing our promotion capacity mainly through increasing workforce
for promotion; devoting further efforts to maintaining relationships with existing policyholders; cutting the costsof our existing operations; demonstrating our general ability through cooperation with retailing and otherbusinesses; enhancing our measures for the business continuity plan (BCP), general risk management andorganizational management; and fostering human resources.
This annual report mainly covers CO-OP Insurance’s operations in fiscal 2016. 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 other Co-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 FY2016
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 numberof policyholders in JCIF products contracts with us reached 8.09 million people in March 2017. 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
987

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

6.99
6.26

7.30

7.79
7.53 7.66

7.94 8.09

6.44

6

5.38
4.89

5

4.01

4

3.27
2.77

3

2.05

2

2.35

1.47
(million people) 1.09

1
0

0.13
1984 1990 1994 1995 1997 1998 1999 2000 2002 2004 2005 2007 2008 2010 2011 2012 2013 2014 2015 2016
(Fiscal year)

We were rated as the top life insurance provider in customer satisfaction for
the fourth straight year, and rated at the fifth in the combined annual category.
CO-OP Insurance won first place in the life insurance category of the FY
2016 Japanese Customer Satisfaction Index ( JCSI) published by the Service
Productivity & Innovation for Growth (SPRING) of the Japan Productivity
Center for the fourth straight year. The survey forming the basis of theindex is one of the most extensive customer satisfaction surveys in Japan,
based on the opinions of over 120,000 customers.
CO-OP Insurance also took fifth place in the combined annual category,among 421 companies/brands from 32 business categories.

In September 2016, we renewed the insurance product of Tasukeai.
CO-OP Insurance develops and improves insurance products based on our policyholders’ opinions.
Since September 2016, the policy period of the plan of Tasukeai for children has been extended by a year, sothat the insured are covered until reaching the age of 20. We also launched a special policy option for advanced
medical care, which is available at a monthly premium of 100 yen.

04

Annual Report 2017

Outline of the JCIF
JCIF, Co-op and JCCU
Our organization is a union of 149 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.
JCIF

JCCU

Japan CO-OP Insurance Consumers’
Co-operative Federation

Japanese Consumers’ Co-operative Union

CO-OP Insurance business.

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

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 the dual roles of member
Co-op and JCIF.

Japan CO-OP Insurance Consumers' Co-operative Federation05

As of July 14, 2017

Structure of JCIFManagement Planning Div.

Assistant ofManaging
Director(in charge of Planning)

Information and Communication Div.

Joint
Management
Dept.

Risk Managemant and Internal
Control Div.
Legal and Compliance Div.
Customer Satisfaction Promotion Div.
Second Base of Claims Establishment
Preparation Office

Board ofAuditors

Claims Planning Div.
Claims Handling First Div.

Clerial Dept.

Claims Handling Second Div.
Contract Clerical Div.
Call Center Management Div.
Information Systems Div.

President

Managing
Director

Information Technology Promotion
OfficeProduct Development Div.
Accounting Div.

Vice President

Administrative andDevelopment Dept.

Asset Management Div.
General Affairs Div.
Personal Planning Div.

Education and Learning Div.

Assistant ofManaging Director

Promotion Plannning Div.
Hokkaido and Tohoku Area
Promotion Div.

Internal Auditing
Div.

Central Area Promotion Div.

Seles Promotion
Dept.

Kansai Area Promotion Div.
Cyuushikoku Area Promotion Div.

Standing
Director

Kyusyu Area Promotion Div.
Publicity Planning Div.
Members Support div.

Security Business Div.

06

Annual Report 2017

Types of CO-OP Insurance
CO-OP Insurance
Tasukeai

CO-OP Insurance
i.-Plus— Medical Insurance— Term Life InsuranceThis insurance provides comprehensive coverage foroutpatient care due to accident, hospitalization,
surgery, death, disability members’ death of theinsured, and damage to residences caused by fire orother 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, andsurgery of the insured. The maximum sum insured is¥30 million in death benefits for a reasonablepremium. Added coverage is available by combining
i.-Plus with Tasukeai. The contract term is 10 years
and the premium varies according to the age and sexof the insured.
Coverage may be extended until the member
reaches the age of 85.

CO-OP Insurance
Zutto-i.
— Whole life InsuranceThis insurance provides cover for lifetime
hospitalization, surgery and death.
There are 2 types. One is whole life insurance
which covers lifetime death. The other is medical
insurance which covers lifetime hospitalization andsurgery.

i.-PlusPlatinum 85
Platinum 85, launched in September 2017, is an
insurance product available for people aged 65 to 70,
continuously covering inpatient treatment and death
until the age of 85. Its coverage does not change
from the time of contract to its expiration. Optionalamounts of coverage for medical operations anddeath can also be added as needed.

CO-OP Fire Insurance

CO-OP Life Insurance
New i.i.

This 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 a third party residence, unexpected
damaged from a third party and earthquakes etc.

Basic plan that provides cover for death with therebate plan can be matched up with medical cover
and women’s health cover. The contract term isrenewable 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.

— Life Insurance

Direct and Indirect Insurance Products Offered
CO-OP Insurance offers direct and indirect insurance products. In direct insurance contracts, JCIF as a contract
underwriter is responsible for collecting insurance premiums and paying insurance benefits. We offer four direct
insurance products : CO-OP Insurance Tasukeai, CO-OP Insurance i.-Plus, and CO-OP Insurance Zutto-i., Whole
Life Insurance and Whole-life Medical Insurance.
CO-OP Insurance also provides member households with indirect insurance in the areas beyond the coverageof its direct insurance products, in alliance with ZENROSAI*, property and casualty insurance firms, etc.
* In CO-OP Insurance contracts, each contract underwriter is individually responsible for insurance coverage according to the scope of its
underwriting, instead of sharing joint responsibility.

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 Occurrencesout
2 SendingDocuments for Claims

CO-OP
Insurance
CenterJCIF(Claim Payment Dept.)(Call Center)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.

Enclosing origami cranes with forms necessary for claims
When sending claimants forms necessary for claiming insurance benefits, CO-OP Insurance encloses origami cranes
made by Co-op members around the country. This activity originated around 1992, when Co-op staff in charge of
insurance in Nagano Prefecture began to enclose origami cranes with such documents to express their sympathy.
In the process of paying insurance benefits or relief money to victims of the Great Hanshin and Awaji
Earthquake in 1995, we enclosed origami cranes with documents sent to them. Since these origami cranes met
with a favorable reaction from many recipients, this activity was expanded nationwide. While many volunteers
currently participate in making origami cranes at Co-ops around the country, some recipients of origami cranes
in turn send us origami cranes of their own making, resulting in a growing circle of people connected to eachother with origami cranes. Moreover, many respondents to the questionnaire enclosed with the announcementof insurance benefit payment express their thanks for origami cranes. These activities have steadily contributed
to spreading the spirit of mutual help.

08

Annual Report 2017

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 FY2016
We had 194,800 complaints and requests in fiscal 2016.
Viewing the opinions we received as representing the voice ofour policyholders, we are striving to improve the problems.

Others36.8%

Requests 8.7%

Thanks50.2%Complaints 4.3%

(2) Improvement efforts resulting from complaints and opinions we receive
We have introduced the management system to unify the management of complaints and opinions we 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 2017

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, 2017 there are 3,936 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 2016, more than 44,000
people in total participated in the activities, principally in revision of coverage.

Participants in Life-planning Activities

Number of participants

25,00021,113Fiscal 2015

20,628

Fiscal 2016

20,00015,00010,0008,257

8,139 7,930
6,389

5,000

0

2,414 2,732

LectureTraining
sessions

Training
session forchildren

3,657

4,509

Learning
activity

1,069 1,036

1,441 1,593

Indivisualconsulting“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 359 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, Zutto-i. and New i.i. policyholders, JCIF
contracts specialist counselors including doctors and nurses
from governmental corporation to give advice on health,treatment and care-giving as well as instruction on whichmedial facility to use. During fiscal 2016 the call center fielded
42,209 calls for advice.

Social Contribution Activities
While Co-ops conduct their operations aiming to further improve people’s lives, the current social situation
requires us to pay careful attention to the entire local societies and cooperate with other organizations andgovernmental bodies to solve difficulties in people’s everyday lives. For this purpose, JCIF initiated a grant
program in fiscal 2012, aiming to create a richer society. This grant program supports activities conducted
through a network involving a Co-op and other organizations to solve problems.
As a result of the screening procedure, a total of 22,851,428 yen was paid in grants to 38 applicants in fiscal
2016.

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 lives ofwomen and children

12

Annual Report 2017

Fiscal 2016 CO-OP Insurance Business Overview
Overview of the financial results of the CO-OP Insurance business is as follows:

End of year policyholders totaled 8,521,919
When broken down by product, Tasukeai policyholders increased 0.2% from the previous year to 5,899,057,
i.-Plus policyholders increased 3.8% to 1,755,819, Zutto-i. policyholders increased 18.8% from the previous
year to 440,252, CO-OP Fire Insurance policyholders decreased 0.5% to 399,531, and CO-OP Insurance new-i.i.
policyholders decreased 5.6% to 27,208.

¥11,967 billion

Insurance in force totaled

CO-OP Insurance has total policies of ¥ 11,967 billion of insurance in force (JCIF products only) , an increase of
1.9% on the previous year.

¥180 billion

Premiums totaled

CO-OP Insurance has total premiums of ¥ 180 billion (JCIF products only) , an increase of 2.9% on the previous
year.

1,307,826 payments made
CO-OP Insurance made a total of 1,307,826 payments (JCIF products only) , an increase of 0.3% on the previous
year.

¥64,403 million in payments made
CO-OP Insurance Group has made a total of ¥64,403 million in payments for insurance claims ( JCIF products
only) , an increase of 2.3% on the previous year.
* Refer to Page 8, about direct and indirect insurance.

Asset Management
Investment Assets

JPY Millions*1

USD Thousands*2

As of March 20,

2016

2017

composition
ratio(%)

Cash¥ 58,583¥ 101,406

31.2%$ 893,602

Money trust *3

36,79250,14315.4%

441,866

Negotiable deposit

81,00036,00011.1%

317,236

Public andcorporate bond

120,520

137,71942.3%

1,213,597

255

255

0.1%

2,247

Stocks2017

Stocks0.1%

Public andcorporate
bond

31.2%

42.3%

Foreign bond

0

0

0.0%

0

Negotiable
deposit

Other securities

0

0

0.0%

0

11.1%

¥ 297,150¥ 325,523

100.0%$ 2,868,549

Total

Cash

Money
trust

15.4%

*1. Yen Amounts are rounded down to the nearest ¥1 million.
*2. U.S. dollar amounts are translated, for convenience only, at ¥113.48= US$1.00, the rate
prevailing on March 20, 2017, and rounded down to the nearest $1 thousand.
*3. Money held in trust are transferable warranty deposits.

Japan CO-OP Insurance Consumers' Co-operative Federation

13

Sectral CO - OP Insurance Business Overview

CO - OP Insurance

Tasukeai

CO - OP Insurance

2013

5,937,255

2013

2014

5,901,123

2014

2015

5,889,724

2015

2016

5,885,847

2016

2017

5,899,057

2017

1,444,456
1,529,839
1,609,576
1,692,247
1,755,819

As of March 20,

2016

2017

As of March 20,

2016

2017

Number of Policies

5,885,847

5,899,057

Number of Policies

1,692,247

1,755,819

Premium Income (¥millions)¥ 106,759¥ 105,998

Premium Income (¥millions)¥ 53,545¥ 56,362

Claims Paid (¥millions)¥ 43,510¥ 42,647

Claims Paid (¥millions)¥ 17,324¥ 19,260

CO - OP Insurance
2013

Zutto-i.

154,441

2014

235,673
300,2012015

370,6612016

440,2522017

CO - OP Insurance

New i.i.

35,68533,227

2014
2015
2016
2017

As of March 20,

2016

2017

Number of Policies

370,661

440,252

Premium Income (¥millions)¥ 15,197¥ 18,167

Claims Paid (¥millions)¥ 2,116¥ 2,495

CO - OP Fire Insurance

2013

30,763
28,847
27,2082013

401,8092014

406,0072015

406,355

2016

401,6542017399,531

As of March 20,

2016

2017

As of March 20,

2016

2017

Number of Policies

28,847

27,208

Number of Policies

401,654399,531

Premium Income (¥millions)¥4,391¥4,186Premium Income (¥millions)¥4,623¥4,560

¥669

¥429

¥947

¥1,036Claims Paid (¥millions)

14i.-Plus

Annual Report 2017

Claims Paid (¥millions)Balance Sheet
As of March 20,

AssetsJPY Millions*1

USD Thousands*2

2016

2017

2017

¥ 58,583¥ 101,406$ 893,602

Money trust

36,79250,143441,866

Securities

201,775

173,974

1,533,080

Loans

−

−

−

Reinsurance account

56

66

581

6,268

6,233

54,925Contract account

310

311

2,740

Other mutual insurance assets

116

101

890

Advance payments

19

45

396

Outstanding earnings

221

195

1,718

Other assets

1,135

1,381

12,169Fixed assets for business use

10,306

9,472

83,468Investment in affiliates etc.

270

270

2,379

13,746

14,399126,885−−−¥ 329,601¥ 358,044$ 3,155,128¥ 197,594¥ 215,745$ 1,901,172

142

190

1,674

3,966

4,172

36,764

0

0

0

137

51

449

Outstanding outlays

1,905

2,008

17,694

Other

7,083

6,729

59,296994

1,144

10,081

2,510

2,974

26,207¥ 214,336¥ 233,018$ 2,053,383¥ 114,038¥123,664$ 1,089,742

1,226

1,322

11,649Total Capital¥ 115,265¥ 124,986$ 1,101,392

Total liabilities and Capital¥ 329,601¥ 358,004$ 3,154,776

Cash and time deposits

Subcontracting accountDeferred 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 ¥ 113.48 = US$1.00, the rate prevailing on March 20, 2017, 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,
JPY Millions*1

Ordinary Income:USD Thousands*2

2016

2017

2017

¥ 176,296¥ 181,249$ 1,597,188

Reversal of allowance for reserve of
insurance policy

28,56630,241

266,487

Investment income

1,401

1,392

12,266

Other ordinary income

296

253

2,229

Total ordinary income¥ 206,560¥ 213,137$ 1,878,189¥ 93,817¥ 97,091$ 855,578

14,352

15,097133,036

Investment expenses

64

106

934

Operating expenses

49,98952,268

460,592

Other ordinary expenses

61

185

1,630

Total ordinary expenses¥ 158,285¥ 164,750$ 1,451,797

Ordinary Surplus¥ 48,275¥ 48,387$ 426,392

0

−

−

¥ 889

¥ 733

$ 6,594¥ 47,386¥ 47,653$ 419,924

Corporate and other taxes

5,073

4,664

41,099Adjustment of corporate and other taxes

− 735

− 690

− 6,080

Transfer to resreve for claim rebate

32,67233,295

293,399

Net surplus

10,376

10,38491,505

467

525

4,626

−

−

−

Reversal of reserve for office system maintenance

326

521

4,591

Reversal of reserve for business
continuity planning

396

−

−

Reversal of reserve for catastrophe solatium

4

231

2,035

Reversal of subscriber contribution

−

39

343

¥ 11,570¥ 11,703$ 103,128

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 start-up business

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 ¥ 113.48 = US$1.00, the rate prevailing on March 20, 2017, and rounded
down to the nearest $1 thousand.

16

Annual Report 2017

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

JPY Millions*1

2016

2017

2017

¥ 155,623¥ 169,092$ 1,490,059

26,72427,370241,1871164.6%1235.6%1235.6%

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

USD Thousands*2*1. Yen Amounts are rounded down to the nearest ¥1 million.
*2. U.S. dollar amounts are converted, for convenience only, at ¥ 113.48 = US$1.00, the rate prevailing on March 20, 2017, 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

JPY Millions*1

USD Thousands*2（As of March 20）

2016

2017

2017

Basic profit *4¥ 50,381¥ 50,266$ 442,950

Investment profit *3

79

−5

− 44

Moratality profit *3

49,73847,368417,412

Expense profit *3

563

2,902

25,572*1. Yen Amounts are rounded down to the nearest ¥1 million.
*2. U.S. dollar amounts are converted, for convenience only, at ¥ 113.48 = US$1.00, the rate prevailing on March 20, 2017, 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

JPY Millions*1

USD Thousands*2（As of March 20）

2016

2017

2017

① Equity capital¥ 115,265¥ 124,986$ 1,101,392

40,07042,314

372,876

155,335

167,301

1,474,277¥ 329,810¥ 358,004$ 3,155,128

34.9%

34.9%

34.9%

47.1%

46.7%

46.7%

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 ¥ 113.48 = US$1.00, the rate prevailing on March 20, 2017, 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 Federation17

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
149 ( as of March 20th, 2017 )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 is directly
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