aFor

Better Tomorrow

Year Ended March 20, 2015

ANNUAL REPORT

2015

Japan CO-OP Insurance Consumers' Co-operative Federation

ANNUAL REPORT 2015
Year Ended March 20, 2015

CONTENTS
Visions of CO-OP Insurance

01

Financial Highlights

02

Message from the President

03
04

Outline of the JCIF

06

Types of CO-OP Insurance

08

Payment of Claims

09

Risk Management and Compliance System

10

Activities

12

Fiscal 2014 CO･OP Insurance Business Overview

14

Balance Sheet

16

Income Statement

17

Solvency Margin Ratio and Others

18

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

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

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

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

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

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

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

Japan CO-OP Insurance Consumers' Co-operative Federation

01

Financial Highlights
Thousands of
U.S. dollars*2

Millions of yen*1

For the years ended March 20,

2014

2015

2015

Ordinary income¥ 196,151¥ 200,351$ 1,659

Ordinary expenses

153,257

154,711

1,281

Ordinary surplus

42,89445,640378

Net surplus

8,475

9,215

76

Total assets

273,130

301,774

2,499

Total liabilities

176,019

195,915

1,622

Total capital

97,111

105,858

876

Number of policies total

8,106,282

8,236,619—

Number of policies (diredt insurance)

7,666,635

7,799,501—¥ 112,894¥ 115,099

953

1,292.0

1,385.9—

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 ¥ 120.72=US$1.00, the rate prevailing on March 20,2015, and rounded
down to the nearest $1 thousand.

Number of policies (all total)(thousands)

Amount insured (direct insurance)(¥ billions)

9,000

12,000
7,974

8,000
7,415

8,106

8,236

10,851

11,13011,28911,50910,403

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

2011

2012

2013

2014

2015
(As of March 20)

02

Annual Report 2015

0

2011

2012

2013

2014

2015
(As of March 20)

Message from the President
Fiscal 2014 marked the 30th anniversary of the launch of CO-OP Insurance. At the end of that memorable fiscal
year, the number of CO-OP Insurance policyholders was 8.23 million. During the year, we paid out a total of 62.9
billion yen in insurance benefits (100.6% of the previous fiscal year) to 1.3 million insurance claimants.
Concerning the Great East Japan Earthquake four years ago, we have so far paid out 1.64 billion yen in insurance
benefits to 2,944 claimants, and 1.99 billion yen in disaster relief funds to 73,000 policyholders. We will continue
every possible effort toward secure insurance payment. Moreover, CO-OP Insurance has occupied first place fortwo consecutive years since 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.
Furthermore, during fiscal 2014, which was the second year of the three-year CO-OP Insurance Medium-term
Business Plan 2015, we strived to enhance the brand value of CO-OP Insurance and our business quality, improve
our service based on input from Co-op member households, carry out structural reforms in costs, build stronger
foundations for member Co-ops and our organization, and adopt other measures, with the aim of fulfilling the
CO-OP Insurance Long-term Vision 2020.
In fiscal 2015, we will cooperate with member Co-ops to further strengthen our system in order to create more
helpful CO-OP Insurance for the lives of our member households. We also intend to raise our business quality andimplement structural reforms in costs by reviewing the application procedures for insurance policies, developing
new insurance payment systems, and adopting other measures. Additionally, we will review our CO-OP Insurance
products from medium- and long-term perspectives, and develop the next medium-term plan.
This annual report mainly describes CO-OP Insurance’s operations in fiscal 2014. I hope that this report will
help you to deepen your understanding of our businesses and CO-OP Insurance products.
We are determined to continuously concentrate all our energies on contributing to your safe and secure living,
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 FY2014
CO-OP Insurance celebrated its 30th anniversary in 2014.
Born from Co-op members’ desire to help each other in time of need, CO-OP Insurance marked its 30th
anniversary in 2014. 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 of policyholders in direct insurance contracts with us reached 7.79 million people inMarch 2015. The spirit of mutual cooperation for supporting each other’ s future has been carried on withoutchange since the launch of CO-OP Insurance.

Changes in the number of policyholders
CO-OP Insurance has increased its
helpfulness step by step throughcooperation among members.

6.99
6.26
4.89

7.30

7.53 7.66 7.79

6.44

5.38

4.01

2.05
(million people)

1.09

2.35

2.77

3.27

1.47

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

We have been rated as the top life insurance provider
in customer satisfaction for two consecutive years.
CO-OP Insurance won first place in the life insurance category of the FY 2014 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 2015

We started using SNS (LINE and Facebook).
Our official LINE account opened
Between March 4 and May 26, 2014, we opened CO-OP Insurance’s official LINE account. While about 4.3 million
people added CO-OP Insurance as a friend, approximately 4.22 million people used free stickers of Ko-suke, themascot character for CO-OP Insurance.
In response to numerous requests for reopening the account, weagain opened the account on December 30, 2014. Advanced
versions of Ko-suke stickers, which were raised to animated ones,
have enjoyed enormous popularity, being downloaded by 4.69
million people, many more than the previous version. Moreover,
4.79 million people had added CO-OP Insurance as a friend as ofMarch 2015.

Ko-suke’s animated stickers

Home screen of
our LINE accountOur Facebook Page launched
On May 26, 2014, we launched JCIF’s Facebook Page. On the page, we offer information about CO-OP Insurance
and its mascot character Ko-suke on a weekly basis. Fortunately, the number of “likes” that we have received
reached 10,000 on March 7, 2015.
We will continue to provide pleasant information helpful for your safe and secure living via SNS in fiscal 2015
and beyond.

Our Facebook Page with a design associated with the season

Japan CO-OP Insurance Consumers' Co-operative Federation05

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.

06

Annual Report 2015

Structure of JCIFAs of June 21,2015

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.
Internal Control Div.

Education and Learning Div.

Board
of
Directors

Promotion plannnig Div.
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.

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.

Japan CO-OP Insurance Consumers' Co-operative Federation

07

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 members’

coverage is available by combining i-Plus withdemands for coverage that is essential to their daily

Tasukeai. The contract term is 10 years and thelives 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 and death

insured.
Coverage may be extended until the member

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 which

and women’s health cover. The contract term iscovers lifetime death. The other is medical insurance

renewable after five years with the option of a rebate

which covers lifetime hospitalization and surgery.

after the five years. Coverage may be extended until
the member reaches the age of 80.
●CO-OP Insurance i.i. was stopped offer.

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

Direct and Indirect Insurance Products Offered
CO-OP Insurance offers direct and indirect insurance products. Direct insurance products are offered by 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.

08

Annual Report 2015

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.

Japan CO-OP Insurance Consumers' Co-operative Federation

09

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.

Project development risks and insurance underwriting risks
Risks that stem from fluctuations in the incidence rate of accidents covered beyond the forecasts made at the timeof 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.

10

Annual Report 2015

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 on policyholder
feedback. In order to receive more feedback and reflect the opinions in our business, we established theconsultation center, which is dedicated to handling complains, opinions, and requests in 2006.

Complaints we received at the consultation center in FY2014
We had 212,440 complaints and requests in fiscal 2014.
Viewing the opinions we received as representing the voice of

Othersour policyholders, we are striving to improve the problems.

39.0%

Requests 7.8%

Thanks49.4%

Complaints 3.8%(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.

Japan CO-OP Insurance Consumers' Co-operative Federation

11

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, 2015 there are 3,559 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
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 2014, more than 47,000
people in total participated in the activities, principally in revision of coverage.

Participants in Life-planning Activities

Number of participants

30,000Fiscal 2013
25,000Fiscal 2014

24,042
21,42420,00015,00010,000

9,198

8,310
6,344

5,000

3,253 3,727
1,599

0

12

Annual Report 2015

7,486

LectureTraining
sessions

Training
session forchildren

754

Indivisualconsulting

924

8,929
4,835

1,295

“Senryu”
project

Othersthe number ofhits of HP

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 306 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 from governmental
corporation to give advice on health, treatment and care-giving as wellas instruction on which medial facility to use. During fiscal 2014 thecall center fielded 36,899 calls for advice.

Social Contribution Activities
In fiscal 2014, 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 2014 set at 21 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 lives ofwomen and children

Japan CO-OP Insurance Consumers' Co-operative Federation

13

Fiscal 2014 CO･OP Insurance Business Overview
Overview of the financial results of the CO-OP Insurance business is as follows:

End of year policyholders totaled

8,236,619

When broken down by product, Tasukeai policyholders decreased 0.2% from the previous year to 5,889,724,
i.-Plus policyholders increased 5.2% to 1,609,576, Zutto-i. policyholders increased 27.4% from the previous year to300,201, CO-OP Fire Insurance policyholders increased 0.1% to 406,355, and CO-OP Insurance new-i.i.
policyholders decreased 7.4% to 30,763.

Insurance in force totaled¥11,509 billion

CO-OP Insurance has total policies of ¥ 11,509 billion of direct insurance in force, an increase of 2.0% on theprevious year.

Premiums totaled¥170 billion

CO-OP Insurance has total premiums of ¥ 170 billion, an increase of 2.7% on the previous year.

Payments

1,302,749 • ¥62,937 million

CO-OP Insurance made a total of 1,302,749 payments, an increase of 0.6% on the previous year.
CO-OP Insurance has made a total of ¥ 62,937 million in payments for insurance claims, an increase of 0.6% on theprevious year.
* Refer to Page 8, about direct and indirect insurance.

Asset Management
Investment Assets

Thousands of
U.S. dollars*2

Millions of yen*1

2014

2015

composition
ratio(%)

2015¥ 56,567¥47,98017.8%$397,448

Negotiable deposit

85,00088,00032.7%

728,959

Public andcorporate bond

84,572

109,76140.8%

909,219

255

255

0.1%

2,112

Foreign bond

8,149

16,2896.1%

134,932

Other securities

4,187

6,749

2.5%

55,906¥ 238,733¥269,036

100.0%

2,228,595

As of March 20,
Cash

StocksTotal*1. Yen Amounts are rounded down to the nearest ¥ 1 million.
*2. U.S. dollar amounts are translated, for convenience only, at ¥ 120.72 = US$1.00, the rate
prevailing on March 20, 2015, and rounded down to the nearest $1 thousand.
* Money held in trust are transferable warranty deposits.
* A portion of foreign securities in foreign currencies are hedged.
* Other securities are consist of investment trusts in which volatilities are suppressed.

14

Annual Report 2015

Foreign bond
6.1%
Stocks0.1%

Othersecurities
2.5%
Cash
17.8%

Public andcorporate
bond
40.8%

Negotiable
deposit32.7%

Sectral CO-OP Insurance Business Overview

CO･OP Insurance Tasukeai

CO･OP Insurance i.-Plus

2011

5,784,814

2011

2012

5,911,867

2012

2013

5,937,255

2013

2014

5,901,123

2014

2015

5,889,724

2015

1,609,576

1,198,788
1,340,777
1,444,456
1,529,839

As of March 20,

2014

2015

As of March 20,

2014

2015

Number of Policies

5,901,123

5,889,724

Number of Policies

1,529,839

1,609,576

Premium Income（¥millions)¥108,167¥107,239

Premium Income（¥millions)¥48,082¥50,729

Claims Paid（¥millions)¥46,034¥44,872

Claims Paid（¥millions)¥15,374¥16,422

As of March 20,

2014

2015

Number of Policies

235,673

300,201

Premium Income（¥millions)¥9,720¥12,506

Claims Paid（¥millions)¥1,157¥1,643

CO･OP Insurance Zutto-i.

2012

47,488

2013

154,441
235,6732014

300,201

2015

CO･OP Insurance New i.i.

2011

CO･OP Fire Insurance

30,7102011

390,287

2012

36,255

2012

396,3062013

35,685

2013

401,8092014

406,0072015

406,355

2014
2015

33,22730,763As of March 20,

2014

2015

As of March 20,

2014

2015

Number of Policies

33,22730,763

Number of Policies

406,007406,355

Premium Income（¥millions)¥4,947¥4,657

Premium Income（¥millions)¥4,776¥4,799¥840¥714

Claims Paid（¥millions)¥1,069¥1,181Claims Paid（¥millions)Japan CO-OP Insurance Consumers' Co-operative Federation15

Balance Sheet
As of March 20,

Thousands of
U.S. dollars *2

Millions of yen*1

Assets

2014

2015

2015

Cash and time deposits¥ 55,673¥ 47,667$ 394,855

Money trust

19,412

29,536244,665

Securities

163,647

191,831

1,589,057

6

0

0

167

166

1,375

6,123

6,108

50,596

Contract account

312

330

2,733

Other mutual insurance assets

123

114

944

7

6

49

Outstanding earnings

204

207

1,714

Other assets

658

733

6,071

Fixed assets for business use

14,184

11,88998,484

Investment in affiliates etc.

237

250

2,070

12,371

12,929107,099

−−

−−

−−

¥ 273,130¥ 301,774$ 2,499,784¥ 161,209¥ 179,136$ 1,483,896

164

177

1,466

3,850

3,914

32,422Contract account

0

0

0

Other insurance liabilities

7

396

3,280

Outstanding outlays

1,579

1,875

15,531

Other

7,220

7,895

65,399

762

887

7,347

1,223

1,632

13,518¥ 176,019¥ 195,915$ 1,622,887¥ 95,994¥ 104,422$ 864,993

1,117

1,436

11,895

Total Capital¥ 97,111¥ 105,858$ 876,888

Total liabilities and Capital¥ 273,130¥ 301,774$ 2,499,784

Loans
Reinsurance account
Subcontracting account

Advance payments

Deferred tax assets
Deferred assets
Total assets

Liabilities
Policy reserves
Reinsurance account
Subcontracting accountAllowance
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 ¥ 120.72 = US$1.00, the rate prevailing on March 20, 2015, and rounded
down to the nearest $1 thousand.

16

Annual Report 2015

Income Statement
For the years ended March 20,

Thousands of
U.S. dollars *2

Millions of yen*1

2014

2015

2015

¥ 167,490¥ 171,585$ 1,421,346

27,571

27,190225,231

Investment income

846

1,329

11,008Other ordinary income

242

245

2,029

Total ordinary income¥ 196,151¥ 200,351$ 1,659,633¥ 92,352¥ 92,490$ 766,153

13,14914,167

117,354

Investment expenses

47

48

397

Operating expenses

47,63947,947397,175

Other ordinary expenses

68

57

472

Total ordinary expenses¥ 153,257¥ 154,711$ 1,281,568

Ordinary Surplus¥ 42,894¥ 45,640$ 378,064

−−

−−

−−

¥ 327

¥ 424

$ 3,512¥ 42,566¥ 45,215$ 374,544

Corporate and other taxes

4,985

5,593

46,330Adjustment of corporate and other taxes-1,548-671-5,558Transfer to resreve for claim rebate

30,65331,078257,438

Net surplus

8,475

9,215

76,333

Net surplus for the period

442

413

3,421

Reversal of reserve for start-up business

−−

−−

−−

Reversal of reserve for business
continuity planning

24

174

1,441

Reversal of reserve for catastrophe solatium

25

9

74

¥ 8,969¥ 9,813$ 81,287

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

Ordinary Expenses:
Claims paid
Provisions for policy reserves

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

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 ¥ 120.72 = US$1.00, the rate prevailing on March 20, 2015, and rounded
down to the nearest $1 thousand.

Japan CO-OP Insurance Consumers' Co-operative Federation

17

Solvency Margin Ratio and Others
Solvency Margin Ratio *3
As of March 20
Total solvency margin *4 ①
Total risks ②
Solvency margin ratio = ① ÷ (②×1/ 2)×100

Thousands of
U.S. dollars *2

Millions of yen*1

2014

2015

2015

¥ 153,863¥ 169,333$ 1,402,692

23,817

24,436

202,4171292.0%1385.9%1385.9%*1. Yen Amounts are rounded down to the nearest ¥ 1 million.
*2. U.S. dollar amounts are converted, for convenience only, at ¥ 120.72 = US$1.00, the rate prevailing on March 20, 2015, and rounded
down to the nearest $1 thousand.
*3. The solvency margin rate of JCIF is calculated based on the Ordinance for Enforcement of Co-op law as determined by the Ministry of
Health, Labour and Welfare.
Therefore, it is incommensurable with the solvency margin rate of life insurance companies and nonlife insurance companies.
According to the Ministry of Health, Labour and Welfare, the rate needs more than 200%.
*4. The total solvency margin is limited to what can be divided in the CO-OP Insurance enterprise.

Breakdown of Basic Profit

Thousands of
U.S. dollars *2

Millions of yen*1

As of March 20

2014

2015

2015

Basic profit *4¥ 47,036¥ 49,158$ 407,206

Investment profit *3

81

89

737

Moratality profit *3

45,83247,706395,178

Expense profit *3

1,122

1,361

11,274*1. Yen Amounts are rounded down to the nearest ¥ 1 million.
*2. U.S. dollar amounts are converted, for convenience only, at ¥ 120.72 = US$1.00, the rate prevailing on March 20, 2015, and rounded
down to the nearest $1 thousand.
*3. Definitions are as follows:
Investment profit : Differential between the projected investment return (expected yield) and the actual investment return.
Mortality profit : Differential between the projected insurance payment (expected mortality rate) and actual claims for payment.
Expense profit : Differential between the projected operational expenses (projected operational expense ratio) and actual operationa expenses.
*4. Basic profit is calculated by excluding capital gain / loss, such as sales gain or loss on marketable securities, and extraordinary gain / loss,
such as provision for contingency reserves, from recurring surplus. It is the index that shows the basic period income generated from themutual aid enterprise.

Equity Capital Ratio

Thousands of
U.S. dollars *2

Millions of yen*1

As of March 20

2014

2015

2015

① Equity capital¥ 97,111¥ 105,858$ 876,888

32,46936,787

304,729

129,581

142,646

1,181,626¥ 273,130¥ 301,774

2,499,784

35.6%

35.1%

35.1%

47.4%

47.3%

47.3%

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 ¥ 120.72= US$1.00, the rate prevailing on March 20, 2015, 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

18

Annual Report 2015

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, 2015 )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) wasestablished 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