aFor

Better Tomorrow

Year Ended March 20, 2014

ANNUAL REPORT

2014

Japan CO-OP Insurance Consumers' Co-operative Federation

ANNUAL REPORT 2014
Year Ended March 20, 2014

CONTENTS
Visions of CO-OP Insurance

01

Financial Highlights

02

Message from the President

03

Outline of the JCIF

04

Types of CO-OP Insurance

06

Payment of Claims

07

Risk Management and Compliance System

08

Activities

10

Fiscal 2013 CO･OP Insurance Business Overview

12

Balance Sheet

14

Income Statement

15

Solvency Margin Ratio and Others

16

The official name of our organization is 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
For the years ended March 20,

Thousands of
U.S. dollars*2

Millions of yen*1

2013

2014

2014

Ordinary income¥ 191,310¥ 196,151$ 1,917

Ordinary expenses

147,909

153,257

1,497

Ordinary surplus

43,40042,894419

Net surplus

8,463

8,475

82

Total assets

249,412273,130

2,669

Total liabilities

160,261

176,019

1,720

Total capital

89,151

97,111

949

Number of policies total

7,974,180

8,106,282—

Number of policies (diredt insurance)

7,536,152

7,666,635—¥ 111,305¥ 112,894

1,103

1,182.3

1,292.0—

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 ¥ 102.32=US$1.00, the rate prevailing on March 20,2014, and rounded
down to the nearest $1 thousand.

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

9,000

12,000

8,000

7,000

Amount insured (direct insurance)

7,734
7,123

7,974

10,851

8,106

7,415

11,28910,403
10,0006,000

11,130

9,798

8,000

5,000
6,000
4,000

3,000

4,000

2,000
2,000
1,000

0

2010

2011

2012

2013

2014
(As of March 20)

02

Annual Report 2014

0

2010

2011

2012

2013

2014
(As of March 20)

Message from the President
Regarding the CO-OP Insurance business in fiscal 2013, the number of CO-OP insurance policyholders
exceeded 8 million in June, reaching 8.1 million at the end of the fiscal year. Payment of insurance claims
totaled 62.5 billion yen (103.5% of the previous fiscal year), paid out to 1.29 million policyholders. Since
the Great East Japan Earthquake three years ago, we have paid out 1.63 billion yen in claims to 2,900
policyholders and disaster relief funds totaling 1.99 billion yen to 73,000 policyholders. We intend to makeall possible efforts to pay out claims down to the last eligible policyholder. Furthermore, in fiscal 2013,
CO-OP Insurance won first prize in the life insurance category of the Japanese Customer Satisfaction Index
Survey, conducted by the Service Productivity & Innovation for Growth (SPRING) of the Japan Productivity
Center. Also, the CO-OP Insurance mascot character “Ko-suke” won first prize in the Companies Character
Category of the Yuru-chara® Grand Prix 2013.
The net increase in the number of policyholders averaged around 200,000 to 300,000 over the past
few years, but was only 130,000 in fiscal 2013. CO-OP Insurance Tasukeai, one of our leading products,
recorded a net decrease in the number of policyholders and premiums for the first time since its
introduction. In fiscal 2014, to further reinforce our insurance business, we will work on improving
education/training programs for insurance solicitors, increasing the number of mutual insurance
specialists and promoting cooperation among them, establishing an effective follow-up system,
improving the post-maturity continuation rate, and reducing cancellation and invalidation rates.
Taking into account the anticipated full-fledged population decline in Japan, and the increasingly
difficult times faced by Co-op members and consumers, we will not only focus on solicitation efforts, butalso work on reviewing our existing products and systems, including clerical processes, and enhancing
our human resources development, so as to develop more attractive products and improve service quality
as well as operational efficiency.
This annual report mainly reports on initiatives undertaken by CO-OP Insurance during fiscal 2013.
I hope that this report will help you to better understand the CO-OP Insurance business and its products.
We are determined to make concerted efforts to achieve effective business operations, to ensure that
our CO-OP Insurance business, in combination with Co-op’s retailing and welfare businesses and otherCo-op activities, contributes to ensuring a secure and comfortable life for Co-op members and CO-OP
Insurance policyholders. We ask for your continued understanding and support for CO-OP Insurance.

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

03

Outline of the JCIF
JCIF, Co-op and JCCU
Our organization is a union of 150 consumer cooperative societies from across the nation. Although eachmember Co-ops is an independent legal entity, each provides CO-OP insurance to its members incooperation with the union.
The JCIF has been established to take over and exclusively conduct all mutual insurance businesspreviously 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

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

JCCU● Improvement and development of CO-OP brand products,

supplying business etc.

● 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 fulfilling the requirements ofour specified role and acting
cooperatively

toachieve

Window for thesubscription procedure

ourMember Co-ops

common goals.

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 tothe payment 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.

04

Annual Report 2014

Structure of JCIFAs of June 21,2014

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
Environmental Management

Board
of
Directors

Education and Learning Div.
Promotion Management Div.
Hokkaido and Tohoku Area Promotion Div.
Central Area Promotion Div.

Sales Promotion
Dept.

Kansai Area Promotion Div.
Cyuushikoku Area Promotion Div.
Kyusyu Area Promotion Div.
Promotion plannnig Div.
Publicity Planning Div.
Member Support Div.

Claims Handling First Div.
Claims Handling Second Div.

Clerical Dept.

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

Clerical Reforms
Internal Auditing Div.

Japan CO-OP Insurance Consumers' Co-operative Federation

05

Types of CO-OP Insurance
CO-OP Insurance Tasukeai

CO-OP Insurance i.-Plus

This insurance provides comprehensive coverage forThis insurance simply provides cover for death,

outpatient care due to accident, hospitalization,

which can be added cancer, hospitalization, andsurgery, death, disability members’ death of thesurgery of the insured. The maximum sum insured isinsured, and damage to residences caused by fire or¥ 30 million in death benefits for a reasonable

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

premium. Added coverage is available by combining

members’ demands for coverage that is essential toi-Plus with Tasukeai. The contract term is 10 years

their daily lives at a reasonable premium.

and the premium varies according to the age and— Medical Insurance— Term Life Insurance

There are four plans for women, for children,
mainly to cover medical, and uniform medical andsex of the insured.
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 InsuranceThis

insurance

providescover— Life Insuranceforlifetime

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

insurance which covers lifetime hospitalization andrebate after the five years. Coverage may besurgery.

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
JCIF and 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
alliances with 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.

06

Annual Report 2014

Payment of Claims
Payment of Claims
Payment of claims, excluding that for CO-OP Fire Insurance, is made by JCIF via member Co-ops or the CO-OP
Insurance Center. (Payment of claims for CO-OP Fire Insurance is made by ZENROSAI.) Upon receiving a claim
request, we check the contract details and ask the policyholder for details about the request and then send
the necessary materials. CO-OP Insurance values swift and efficient payment procedures from the viewpointof policyholders. For example, basic information is printed on payment claims documents in advance, andsome procedures 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 toenhance policyholder satisfaction.

Flow of Claims

1 Reporting Occurrences

CO-OP
Insurance
Center(Call Center)2

Sending out
Documents for Claims

JCIF(Claim Payment Dept.)

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

07

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 and System 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 systemin the general 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 madeat the time 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,foreign exchange rates, etc. or deterioration in the financial position of financial institutions with which
we conduct transactions.
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 inaccordance with 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 the required 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 to take on liabilities, when conditions are unfavorable.
We manage to secure the founds corresponding to liabilities by the setting a fair guaranteed yields,
the monitoring 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.

08

Annual Report 2014

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 in2006.

Complaints we received at the consultation center in FY2013
We had 168,285 complaints and requests in fiscal 2013.
Viewing the opinions we received as representing the voice ofour policyholders, we are striving to improve the problems.

Others32.9%
Requests

Thanks

52.6%

11.9%

Complaints 2.6%(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
receive so that related departments can share and swiftly resolve any issues. In addition, we report allcomplaints and opinions to all departments once a week.

Japan CO-OP Insurance Consumers' Co-operative Federation

09

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,

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”

insurance, taxation and finance incomprehensive lectures held by JCIF inorder to become LPA. As of March 20,
2014 there are 3,279 advisors active atmember Co-ops across Japan.

Developments in life-Planning Activities
Life-Planning

activities

havenow become firmly established

Number of participantsParticipants in Life-planning Activities

40,000as Co-op activities. In fiscal
2013, more than 50,000 people

Fiscal 2012

30,000in total participated in theactivities, principally in revisionof coverage.

33,143Fiscal 2013

24,405 24,042

20,00010,0009,378 9,198

7,710
3,035 3,253

0LectureTraining
sessions

Training
session forchildrenThis activity is 20th anniversary in 2014

1,752 1,599

1,089

Indivisualconsulting“Senryu”
project

8,929
6,344

924

Othersthe number ofhits of HP ** The number of hits of HP decreased by changing the counting method.

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

(1) Automatic Blood Pressure Measuring Devices Installed
JCIF has installed automatic blood pressure measuring devices at more than 320 Co-op storesthroughout Japan. Since managing blood pressure is paramount for preventing all lifestyle-related
illness, it is essential to consistently measure blood pressure from day to day. Members are welcome totest 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 well as instruction on which medial facility touse. During fiscal 2013 the call center fielded 37,031 calls for advice.
10

Annual Report 2014

Social Contribution Activities
In fiscal 2013, 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 amountof around 300,000 to 1 million yen, with the total amount to be paid out in fiscal 2013 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 livesof women and children

Environmental Activities
JCIF took out the certification of ISO14001 in 2010. We build theenvironmental management by contriving ways to extract the factor ofeffect to the environment.

Topics of FY2013
We approved to the gist to the turning off of lightcampaign which the environmental ministry lectures,executel its project. We did the light down of our officeat 19:00 on the day. We could control the electricalamount.
Other we have dressed lightly in summer by thegovernment policy encouraging workers to dress lightly
during the summer months to reduce air-conditioner use.

Japan CO-OP Insurance Consumers' Co-operative Federation

11

Fiscal 2013 CO･OP Insurance Business Overview
Overview of the financial results of the CO-OP Insurance business is as follows:

End of year policyholders totaled

8,106,282

When broken down by product, Tasukeai policyholders decreased 0.6% from the previous year to
5,901,123, i.-Plus policyholders increased 5.9% to 1,529,839, Zutto-i. policyholders increased 52.6% from theprevious year to 235,673, CO-OP Fire Insurance policyholders increased 1.0% to 406,007, i.i. policyholders
decreased 22.7% to 413 and CO-OP Insurance “new-i.i.” policyholders decreased 6.9% to 33,227.

Insurance in force totaled¥ 11,289 billion

CO-OP Insurance has total policies of ¥11,289 billion of direct insurance in force, an increase of 1.4% on
the previous year.

¥ 165 billion

Premiums totaled

CO-OP Insurance has total premiums of ¥165 billion, an increase of 3.2% on the previous year.

Payments

1,294,853 • ¥ 62,566 million

CO-OP Insurance made a total of 1,294,853 payments, an increase of 1.5% on the previous year.
CO-OP Insurance has made a total of ¥ 62,566 million in payments for insurance claims, an increase of 3.5%
on the previous year.
* Refer to Page 6, about direct and indirect insurance.

Asset Management
Investment Assets
As of March 20,
Cash
Negotiable deposit
Public andcorporate bondThousands of
U.S. dollars*2

Millions of yen*1

2013

2014

composition
ratio (%)

2014

¥ 76,121¥ 56,567

23.7%$ 552,844

78,00085,00035.6%

830,727

3.4%

Stocks0.1%

Othersecurities

1.8%

Cash
Public andcorporate
bond

23.7%

55,20084,572

35.4%

826,544

Stocks

255

255

0.1%

2,492

Foreign bond

—

8,149

3.4%

79,642

Negotiable
deposit

3,536

4,187

1.8%

40,92035.6%¥ 213,113¥ 238,733

100.0%

2,333,199

Other securities
Total*1. Yen Amounts are rounded down to the nearest ¥ 1 million.
*2. U.S. dollar amounts are translated, for convenience only, at ¥ 102.32 = US$1.00, the rate
prevailing on March 20, 2014, 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.

12

Foreign bond

Annual Report 201435.4%

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

CO･OP Insurance i.-Plus

2010

5,676,134

2010

2011

5,784,814

2011

2012

5,911,867

2012

2013

5,937,255

2013

2014

5,901,123

2014

1,018,750
1,198,788
1,340,777
1,444,456
1,529,839

As of March 20,

2013

2014

As of March 20,

2013

2014

Number of Policies

5,937,255

5,901,123

Number of Policies

1,444,456

1,529,839

Premium Income（¥millions)¥109,292¥108,167

Premium Income（¥millions)¥45,868¥48,082

Claims Paid（¥millions)¥45,980¥46,034

Claims Paid（¥millions)¥14,006¥15,374

CO･OP Insurance

2012

Zutto-i.

47,488
154,4412013
2014

235,673

As of March 20,

2013

2014

Number of Policies

154,441

235,673

Premium Income（¥millions)¥5,707¥9,720¥467¥1,157

Claims Paid（¥millions)

CO･OP Insurance New i.i.

CO･OP Fire Insurance

2010

2010

382,2622011

390,287

23,793

2011

30,7102012

36,255

2012

396,3062013

35,685

2013

401,8092014

406,0072014

33,227

As of March 20,

2013

2014

As of March 20,

2013

2014

Number of Policies

35,68533,227

Number of Policies

401,809406,007

Premium Income（¥millions)¥5,221¥4,947

Premium Income（¥millions)¥4,730¥4,776

¥702

¥840

¥870

¥1,069Claims Paid（¥millions)

Claims Paid（¥millions)* CO-OP Insurance i.i. was stopped offer. The number of policies is 413 in FY2013

Japan CO-OP Insurance Consumers' Co-operative Federation

13

Balance Sheet
As of March 20,

Thousands of
U.S. dollars*2

Millions of yen*1

Assets

2013

2014

2014

Cash and time deposits¥ 75,313¥ 55,673$ 544,106

Money trust

10,56819,412

189,718

Securities

127,232

163,647

1,599,364

7

6

58

134

167

1,632

6,159

6,123

59,841

Contract account

421

312

3,049

Other mutual insurance assets

139

123

1,202

Advance payments

10

7

68

Outstanding earnings

219

204

1,993

Other assets

1,530

658

6,430

Fixed assets for business use

16,535

14,184

138,623

Investment in affiliates etc.

227

237

2,316

10,913

12,371

120,905

−−

−−

−−

¥ 249,412¥ 273,130$ 2,858,503¥ 144,977¥ 161,209$ 1,575,537

160

164

1,602

4,022

3,850

37,627

438

0

0

6

7

68

Outstanding outlays

1,692

1,579

15,431

Other

7,233

7,220

70,562

724

762

7,447

1,005

1,223

11,952¥ 160,261¥ 176,019$ 1,720,279¥ 88,274¥ 95,994$ 938,174

876

1,117

10,916

Total Capital¥ 89,151¥ 97,111$ 949,091

Total liabilities and Capital¥ 249,412¥ 273,130$ 2,669,370

Loans
Reinsurance account
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 ¥ 102.32 = US$1.00, the rate prevailing on March 20, 2014, and rounded
down to the nearest $1 thousand.

14

Annual Report 2014

Income Statement
For the years ended March 20,

Thousands of
U.S. dollars*2

Millions of yen*1

Ordinary Income:

2013

2014

2014

¥ 162,888¥ 167,490$ 1,636,923

27,42427,571

269,458

Investment income

736

846

8,268

Other ordinary income

260

242

2,365

Total ordinary income¥ 191,310¥ 196,151$ 1,917,034¥ 90,176¥ 92,352$ 902,580

10,607

13,149128,508

Investment expenses

26

47

459

Operating expenses

47,02747,639465,588

Other ordinary expenses

72

68

664

Total ordinary expenses¥ 147,909¥ 153,257$ 1,497,820

Ordinary Surplus¥ 43,400¥ 42,894$ 419,214

Extraordinary income

−−

−−

−−

Extraordinary loss

271

327

$ 3,195¥ 43,129

42,566$ 416,008

Corporate and other taxes

5,617

4,985

48,719Adjustment of corporate and other taxes-1,313-1,548-15,129

Transfer to resreve for claim rebate

30,36230,653

299,579

Net surplus

8,463

8,475

82,828Net surplus for the period

439

442

4,319

Reversal of reserve for start-up business

−−

−−

−−

Reversal of reserve for business
continuity planning

274

24

234

Reversal of reserve for catastrophe solatium

104

25

244

¥ 9,282¥ 8,969$ 87,656

Premium and other income
Reversal of allowance for reserve of
insurance policy

Ordinary Expenses:
Claims paid
Provisions for policy reserves

Extraordinary Profit and 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 ¥ 102.32 = US$1.00, the rate prevailing on March 20, 2014, and rounded
down to the nearest $1 thousand.

Japan CO-OP Insurance Consumers' Co-operative Federation

15

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

2013

2014

2014

¥ 137,798¥ 153,863$ 1,503,743

23,31023,817232

1182.3%1292.0%1292.0%*1. Yen Amounts are rounded down to the nearest ¥ 1 million.
*2. U.S. dollar amounts are converted, for convenience only, at ¥ 102.32 = US$1.00, the rate prevailing on March 20, 2014, 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)

2013

2014

2014

Basic profit *4¥ 47,178¥ 47,036$ 459,695

Investment profit *3

188

81

791

Moratality profit *3

46,16345,832447,928

Expense profit *3

826

1,122

10,965*1. Yen Amounts are rounded down to the nearest ¥ 1 million.
*2. U.S. dollar amounts are converted, for convenience only, at ¥ 102.32 = US$1.00, the rate prevailing on March 20, 2014, 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)

2013

2014

2014

① Equity capital¥ 89,151¥ 97,111$ 949,091

28,09832,469317,327

117,249

129,581

1,266,428¥ 249,412¥ 273,130$ 2,669,370

35.7%

35.6%

35.6%

47.0%

47.4%

47.4%

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 ¥ 102.32 = US$1.00, the rate prevailing on March 20, 2014, 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

16

Annual Report 2014

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

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

Established
November 5th, 2008

Number of Member Co-ops
150 ( as of March 20th, 2014 )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 homedelivery services. To avoid conflict with the newly revised Co-op Law,it was decided to jointly establish a new organization, the JCIF, toexclusively 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
1-5-2 Irifune Urayasu Chiba 279-8588 JAPAN
TEL:+81-47-351-3356
FAX:+81-47-351-5298
http://coopkyosai.coop