MESSAGE FROM
THE PRESIDENT

Chairman:

Yoshihiko Murase

President:

Makoto Sugimachi

My name is Makoto Sugimachi. I became President on June 30, 2016.
Let me begin by expressing my sincere gratitude to all our stakeholders for their continued support.
I would also like to extend my condolences for the victims of the 2016 Kumamoto Earthquakes and their families, andpray that the souls of the victims may rest in peace. I offer my heartfelt sympathy to all those in the disaster-hit areasand hope for a swift recovery.
Japan is one of the most active seismic and volcanic areas in the world. The country has been repeatedly hit byearthquakes, volcanic eruptions, and tsunamis.
Earthquake insurance was established in 1966 to stabilize the livelihoods of those affected by such natural disasters.
An earthquake reinsurance scheme consists of three players: the government, private non-life insurance companies
and Japan Earthquake Reinsurance Co., Ltd. (JER), with the public and private sectors working together to ensure thatearthquake insurance claims are paid promptly and reliably.
JER was founded with the launch of the earthquake insurance system as the only company in Japan permitted toexclusively handle reinsurance for earthquake insurance covering dwelling risks and, on May 30 this year, we marked
the momentous occasion of the 50th anniversary of our founding. I would like to express my gratitude to all those
involved in the earthquake insurance system and our shareholders and other stakeholders for their understanding andsupport, without which this would not have been possible.
JER has always sought to make earthquake reinsurance payouts promptly and reliably and has consistently paid closeattention to managing and operating assets for future earthquake reinsurance payouts, focusing primarily on asset
liquidity and safety.
In fiscal 2015, we launched our fourth medium-term business plan “Strengthening Arrangements for Earthquake
Reinsurance Payouts”. This fiscal year is the second year under the plan.
Thus far, we have worked to develop a business continuity plan (BCP) and related systems to prepare for feared largescale earthquakes. We will now further strengthen the effectiveness of our business continuity management (BCM) in
anticipation of an inland earthquake in the Tokyo Metropolitan area, in a bid to ensure our readiness for earthquake
reinsurance payouts, which is our most important mission under the plan.
We will also enhance our asset management capabilities and increase our capacity to deal with financial market
fluctuations, amid the continuing tough management situation globally, including negative interest rates. At the sametime, we will advance integrated risk management.
Further, as management base-related measures, we will further strengthen the IT governance system and corporate
governance system. We will also seek to develop and hire human resources to support the enhancement of corporate
value and aim to create a rewarding and vibrant workplace.
Recognizing our social mission, we will continue striving to contribute to the development of the earthquake insurance
system and, understanding our role and responsibilities, we will step up efforts to execute our duties reliably, aiming tobecome a company that is completely trusted by our stakeholders.
We hope that we can rely on your continued support.

July 2016

Makoto Sugimachi
President
Japan Earthquake Reinsurance Co., Ltd.

Japan Earthquake Reinsurance Co., Ltd. Annual Report 20161