CR Report 2013

Striving to leadthe way into the future

Focus Edition
1-2-3 Kaigan, Minato-ku, Tokyo 105-0022, Japan
http://www.td-holdings.co.jp/en/ E-mail: csr@td-holdings.co.jp

CHALLENGE
Change forthe future.
Change by Japan.

T&D Holdings is participating in
the Challenge 25 Campaign, anational movement to mitigate
global warming.

FOR ALL THE LIFE ON EARTH
We are considerate of biodiversity

This report was printed on Satoyama Monogatari paper, which contributes to preservationof biodiversity, with 100% vegetable oil (non-VOC) ink. The printing was done by thecomputer-to-plate (CTP) process, which makes no use of film, and a waterless method that
does not generate any hazardous waste liquid.

The T&D Life Group practices
green purchasing.

CO2 emissions for one copyof this publication

194.8 g

The total CO2 emissions of 195 kg
generated in preparing thispublication have been offset through
Carbon Offset Japan (www.co-j.jp) inorder to help prevent global warming.

T&D Life GroupOverview

T&D Life Group and Stakeholders

What is the T&D Life Group?

The T&D Life Group co-exists alongside with a variety of stakeholders as a fellow member of society.
We undertake CSR activities to enable us to sincerely and actively engage in dialogue
with all stakeholders and create solid bonds of trust with them.
“T&D” is an acronym for “Try & Discover.” The company was so named
because of its commitment to creating new value through a “try &discover” approach and to being a corporate group useful to the society.

Customers

Shareholders/
Investors

Market: Households

Providing better
products andservices

Sales Agents
Partnering formutual cooperationand prosperity

Providing appropriate
return on
investments

Regional
Communities/
Society
Activities
contributing to society
as a community
member

T&D Life Group

Business Partners

Taiyo Life is engaged in the sale of comprehensive protection-oriented insurance
products covering medical care, nursing care, and death. In-house sales representatives
call on customers and suggest the most appropriate insurance products to them.
Principal products: comprehensive coverage including death protection,
medical/nursing care products

Market: Small and medium enterprises

Daido Life teams up with many companies and groups of tax accountants andcertified public accountants to deliver an insurance system designed to protect a
growing number of small and medium-sized business operators from a variety of risks.

Government
Entities

Employees

Playing a publicrole in society

Providing workplaces
that make work
meaningful andpleasurable

Protecting
the environment,
everyone’s home

Principal products: term life insurance, insurance for serious illness, etc.

Market: Financial institutions and other agencies

Principal products: whole life insurance, income protection insurance, etc.

Other Group companies

With our “Try & Discover” motto for
creating value, we aim to be a group that
contributes to all people and societies.

T&D Life Group Management Vision
From the perspectives of customers
We aim to be the top insurance company in terms of customer
satisfaction by providing the best products and services.
From the perspectives of shareholders, investors andfinancial markets

Insurance Business
Pet & Family Small-amount Short-term Insurance Company
Insurance-related Business
T&D Confirm Ltd., Toyo Insurance Agency Co., Ltd., Daido Management Service Co., Ltd.
Investment Management & Advisory Business
T&D Asset Management Co., Ltd.
Other Investment-related Business
T&D Lease Co., Ltd., T&D Asset Management Cayman Inc., Taiyo Credit Guarantee Co., Ltd.,We aim to be a major life insurance group with a strong market

Alternative Investment Capital Ltd., AIC Private Equity Fund General Partner, Ltd.

presence by increasing our corporate value in a steady and

Administration-related Businesssustainable manner by taking on new challenges toward growth.

T&D Customer Services Co., Ltd.
General Affairs and Calculation-related Business
T&D Information Systems, Ltd., Nihon System Shuno, Inc., Zenkoku Business Center Co., Ltd.

1

Policy amount in force

259,221.2 billion yen
New policy amount3

6,722.4 billion yen

T&D Financial Life provides life insurance products meeting customer needs throughfinancial institutions, insurance shop agents, and other customer service points.

T&D Life Group Corporate Philosophy

120,497

Fair dealings

Proactive communication

Environment

As of March 31, 2013

Employees

Effective and highly transparent corporate governanceThorough complianceGroup scale

1 T&D Holdings on a consolidated basis (including temporary employees)
2 Aggregate of the three major life insurance companies(individual insurance, individual annuity insurance)
3 Aggregate of the three major life insurance companies(individual insurance, individual annuity insurance)

Group financial soundness(Solvency margin ratios)
The solvency margin ratio is an indicator used by regulatory
authorities to judge whether an insurance company has sufficientfinancial capability to pay insurance claims in the event of
unforeseeable risks. A solvency margin ratio of 200 percent andabove demonstrates that the insurance company meets the criteria
for financial soundness.
As of March 31, 2013

T&D Holdings (consolidated)

943.8%
Taiyo Life (non-consolidated)

823.4%
Daido Life (non-consolidated)

1,043.2%
T&D Financial Life (non-consolidated)

648.4%
2

Message from President

The Group’s CSR views and approaches

Contributing to society through business is the foundation of our CSR

Kenji Nakagome
Representative Director and President
T&D Holdings, Inc.

CSR is often associated with social and cultural projects as well as withsecurity is no longer adequate, and it has thus developed insurance productsmonetary donations and volunteer activities. However, since our Group,

to provide sufficient security to policyholders in the event of a serious illness

centered on life insurance business, can help bring about a better society, abefore retirement. To meet the changing needs of customers, T&D

society in which people can live with peace of mind, through the provision

Financial Life has developed and marketed whole life insurance available toof insurance, committing ourselves to our core business of life insurance is

new applicants up to age 95 simply with a job notification as well as aitself our CSR endeavor, efforts for fulfilling our corporate social

savings-type plan for preparation for post-retirement life.

responsibilities. The fundamental issues we must address first and foremost

I believe that promoting active roles for women is also a very important

are establishing company operations capable of steady and continuous

aspect of responding to social changes and demands, a stance underpinned

growth while developing and offering insurance products that customers

in part by the demographic changes Japan is seeing.

want and appreciate having, all the while complying faithfully with laws,

As you know, Japan’s population has begun to decline. The overall population

regulations and rules and creating comfortable workplaces for employees

is forecast to drop to about 87 million by 2060, by which time the percentage

capable of meeting the needs of society.

of the population aged 65 or older will have risen to about 40%. Contributing

Traditional life insurance takes the form of “principal policy + riders,” withto our society’s efforts to halt this population decline and deal with a shrinking

these riders automatically expiring upon the expiration of the principal

labor force, too, is one of our responsibilities as a company operating in ourpolicy. Taiyo Life has developed a highly-reputed product known as “Hoken

time. It is not sufficient to simply boost the number of women serving inKumikyoku Best” that enables customers to freely combine insurance policies

managerial positions or entrust women with greater responsibilities. It is vital

they need for the period of time they need them by making each and every

that we create workplace environments allowing women even after getting

insurance policy a principal policy. Taiyo Life has thus moved beyond themarried to continue working as usual while raising children and enabling“conventional wisdom” surrounding insurance in pioneering a new approachyoung people to get married and raise a family without anxiety. This is indeed

ahead of the rest of the industry.

a key social responsibility that companies must seek to fulfill at the moment,

With an average lifespan and an average length of active careers of company

and we hope to lead the way forward.

managers growing longer, Daido Life has discovered that conventional death

Aiming at steady and continuous growth ofcorporate value keeping in mind the social
responsibilities of life insurance companies
What kind of group is the T&D Life Group?

A major life insurance group with a robust presence that endeavors tocontribute to people and society in a variety of insurance markets

Achieving sustained growth together with, and fulfilling our responsibilities to,the society
CSR is not simply a “mantra” for our Group. Each year when reviewing

makes possible comprehensive assessment and more rational management

financial results of the Group companies, for instance, we assess whether

decision-making in determining whether risk is excessive vis-à-vis capital andeach Group company has been able to develop appropriate products andwhether capital policies and revenue management are adequate.

offer satisfactory services to customers, and whether they have ensured

The business of life insurance companies is to conclude insurance contract

thorough compliance as stated in our CSR Charter. We then put ourwith customers, receive insurance premiums in advance, securely manage

findings to good use in determining the management issues for the next

those funds over an extended period, and promptly pay insurance benefits

fiscal year.

whenever necessary. Given the nature of the relationships with customers,
life insurance companies must remain sound and survive not for just 100

The T&D Life Group is a corporate group centered on three life insurance

As summarized in the corporate philosophy which forms the basis of the

As a Group, we established the Group CSR Committee in 2011 throughcompanies: Taiyo Life, Daido Life and T&D Financial Life. These three life

T&D Life Group’s activities, we aim to contribute to all people andwhich we monitor the CSR activities of Group companies, apply theseyears but for 200 and even 300 years.

insurance companies offer products that meet the needs of customers insocieties, with our “Try & Discover” motto for creating value. The life

activities throughout the whole Group, examine basic policies and priority

2013 is a milestone year, marking T&D Holdings’ 10th anniversary. The

different markets, and there is no overlap among these companies in terms

insurance industry is involved in business of an extremely public/social

areas, and plan new activities to implement.

T&D Life Group now holds the insurance policies of an extraordinarily largeof products, customers or sales methods. Nevertheless, these companies donature in providing unshakable reassurance and emergency supports throughEnterprise risk management (ERM) has been introduced at the T&D Life

number of customers. As one of the largest life insurance companies in Japan,

not operate in isolation and, although they do have their own particular

products and services tailored to social changes and customer needs.

Group’s three life insurance companies to manage profits, risks and capital

the Group has a wide range of stakeholders and assumes heavy social

identities and strengths, they are tied together by a firmly-establishedAccordingly, we believe that our greatest social responsibility is to fulfill thein an integrated fashion. Unlike the conventional passive approach to risk

responsibilities. Driven by a clear self-awareness of this position, the Group

corporate philosophy, vision, and basic principles common to the entire

roles expected of us by the public, and to grow steadily and continuously

management designed to avoid losses, ERM is a proactive approach towill work in concert to contribute to people and society through the creation

Group, pursuing a wide range of life insurance business while mutuallyalongside the rest of society.

strategic risk management aimed at achieving the management targets ofof value via “Try & Discover,” as stated in the Group’s corporate philosophy.

complementing and collaborating with each other.
3

Looking to the future of the Group and the Group’s CSR

increasing corporate value and expanding profits. The introduction of ERM
4

Special Feature 1

Business Activity Report

Fulfilling our corporate social
responsibilities through business activities

DAIDO LIFE
Since the 1970s Daido Life’s mainstay product has been term life insurance for small andmedium-sized companies covering the risks associated with the death of company managers.
With recent years seeing the average age of company managers rising and their active careers
extended, companies are confronted with a growing risk of managers being incapacitated while
in office by a serious disease (cancer, acute myocardial infarction, or cerebral stroke) that would

The T&D Life Group is ascertaining the issues our society is facing and providing better products and services
to help resolve these issues through its business activities. Our aim is to be a firm enjoying broad public trustthat fulfills its corporate social responsibilities through such efforts.

threaten business continuity. Because conventional term insurance only pays out insurancemoney in those instances resulting in death or disability, it cannot adequately address thisgrowing risk.
Daido Life has thus combined its term life insurance with a serious disease insurance plan
(J-Type) to produce a mainstay product that addresses the business continuity risk arising in theevent of a company manager being incapacitated by a serious disease, and the two insurance
plans are being promoted in an integrated manner.

Kanaya Morinaka

Managing Executive Officer, General Manager
Marketing Planning Department
Daido Life Insurance Company

We protect more
small companies froma variety of risks

In October 2012, we also launched a new comprehensive medical insurance (M-Type) based on
the concept of protecting companies from the risk of diminished sales during periods of company
manager’s hospitalization.
As experts in corporate
coverage, Daido Life is carryingout its mission of protecting
more small and medium
businesses from a variety of risks
by offering total coverage
combining J-Type and M-Typecoverage with term insurance.

Providing better products and services
TAIYO LIFE

T&D FINANCIAL LIFEIn October 2008, Taiyo Life began sales of “Hoken Kumikyoku Best,” a product that permits

T&D Financial Life is developing products differentiated by benefits in order to meet theindividual insurance plans (principal policies) to be freely combined.

increasingly diverse needs of customers, and is endeavoring to enhance the product lineup of its

A hit product topping over 1.2 million sales in the four and a half years since it went on theagency business with a particular focus on OTC sales at banks.

market, “Hoken Kumikyoku Best” has the following three features.

More specifically, we are providing three wealth-building products in the “Shougai Premium”
series whereby an additional amount is added each year to the final insurance amount over a(1) Optimal planning for each individual customer is possible by freely
combining the most recent coverage plans to meet the customer’s needs.

Principal features of“Hoken Kumikyoku Best”

customer’s life for use in retirement, as well as “Minna Ni Yasashii Shushinhoken” available to
new applicants up to the age of 95 simply with a job notification, and we have established asolid market position in OTC sales at banks, a market known for rapid turnover among the(2) Customers may freely revise their coverage and amend insurance
policy in response to changes in their needs even after signing up for“Hoken Kumikyoku Best.”hottest-selling products.
We are also providing via banks and insurance shop agents an installment premium productknown as “Kakei Ni Yasashii Shunyuhoshou” to meet the need for revising coverage if the(3) Consolidating our products in “Hoken Kumikyoku Best” allows us
to offer low-cost insurance premiums and develop and provide new
insurance plans within a short period of time.

Sanae Fukuoka

General Manager, Product Department
Taiyo Life Insurance Company

Taking insurance from“this is fine” to “this is it”

In April 2013, we took steps to enhance our medical
coverage by amending the minimum length of
hospitalization insurance coverage from two-day-one-night
to one day (one day of hospitalization) and by extending
coverage to day surgery, which is also covered by the publichealth insurance system. We will continue working toprovide cutting-edge insurance products to meet the needsof our customers.

5

policyholder dies during the insurance period. This insurance makes annuity payments to

Shingo Baba

General Manager, Product Department
T&D Financial Life Insurance Company

Making a differencein product development
to meet changing
customer needs

surviving family every month for a
specified period, and features lower
insurance premiums than those forgeneral term insurance as well as special
provisions to ensure security if thepolicyholder is afflicted with one of thethree designated serious diseases.
We will continue endeavoring toprovide products and services thatsatisfy our customers.

6

Special Feature 1

Business Activity Report

Providing better products and services

COLUMN

T&D Asset Management

Contributing widely to society throughour core business of asset management
We are an asset management firm that started as a captive fund manager of life insurancecompanies. Asset management operations constitute the core business of life insurance companies,
and we have inherited the investment know-how accumulated over many years and have also
taken on the challenge of developing new investment approaches. Leveraging these features under
the action policy of “Make a Difference,” our company is responding to the diverse asset
management needs of customers by providing highly distinctive investment approaches.
In March 2012 we signed the UN Principles for Responsible Investment and incorporated theKiyoshi Yamanaka

Executive Officer, Investment Division
Investment Management Department
T&D Asset Management Co., Ltd.

ESG (environmental, social and governance) perspectives into our investment analysis. We try

To provide even greater reassurance
and satisfaction
Proving ourselves worthy of customer trust
Life insurance relies on a mutual aid scheme for “one for all, and all for one.” By purchasing insurance,
customers can obtain security for surviving family members, cover costs of hospitalization, surgery, andPayments of insurance claims, benefits, and annuities
in FY2012

nursing care as well as set aside funds for retirement. Life insurance companies serve a social role byTotal for three life insurance companies

receiving insurance premium from large numbers of customers and paying out insurance claims etc. inInsurance claims

449.2 billion yen

Benefits(hospitalization, surgery, etc.)216.5 billion yen

Annuities

237.9 billion yen

Total

903.6 billion yen

case of unforeseeable circumstances, thereby protecting the livelihoods of customers.
It is when the customers receive insurance claims, benefits, and annuities that they realize the value of life

to fulfill our social responsibilities by investing in companies that conduct business activities ininsurance. The T&D Life Group believes that ensuring insurance payment is one of the most importantconsideration of ESG factors, according to our appraisal standards.

roles to be fulfilled by life insurance companies.
The three life insurance companies in our Group (Taiyo Life, Daido Life, T&D Financial Life) paid a

total of 903.6 billion yen in insurance claims, benefits, and annuities in fiscal 2012, helping to support the livelihoods of customers. Acknowledging the social role

Pet & Family Small-amount Short-term Insurance“Genki Number One” insurance for pet owners
Interest in pet medical care is rising as it becomes generally accepted to regard pets as lifelong
family members. However, pet owners must pay for veterinary care out of their own pockets,
prompting growing anxiety among owners about these expenses. In response to these needs, welaunched “Genki Number One,” an insurance covering pet veterinary expenses in 2008. This isa simple insurance product designed to meet the needs of individual pet owners that can also
include coverage for advanced medical care.
We consider that a key mission of our company is to meet the growing needs of pet owners forcompensating for medical expenses incurred on their animal companions by popularizing pet

Takashi Nakao

Representative Director and President
Pet & Family Small-amount Short-term Insurance Company

insurance. To fulfill this mission, we will continue endeavoring to offer products that best suit
individual customer needs and to enhance services, intending to help pet and their owner live
healthy and pleasant lives together.

of life insurance companies in delivering reliable security as an important social responsibility, we will seek to prove ourselves worthy of the trust of our customers
and contribute to sustained social stability.

Efforts to ensure correct and prompt insurance payout
The T&D Life Group has undertaken a variety of initiatives to ensure appropriate insurance payout, including formulating basic guidelines, setting up special
committees, increasing personnel and expanding payment organizations, bolstering employee education, stepping up payment audits, revamping the system forpayment appraisal, and putting in place a management structure for product development, thereby enhancing our capabilities.
We also make efforts to improve customer convenience and satisfaction. In addition to providing information to customers in a timely manner when they sign up
for policies and during after-sales follow-ups, we have been working to simplify documentation required of customers, particularly to make insurance claims, and toachieve careful and attentive communication with every individual customer.
We will continue making further improvement efforts for the sake of more accurate and prompt insurance payments.

Enhancement of employee education
Conduct training by Payment Advisors *1
Offer testing via the in-house qualification system*2 to encourage theacquisition of knowledge on insurance payout
Assign persons who have passed the Life Insurance Payment Specialist
Examination*3 to all locations

Efforts by Group Companies

Reinforce training of payment assessors

T&D Information Systems

Prompt and accurate payments to customers

Strengthening information security
management systems
T&D Information Systems first obtained ISO 27001 certification, an international standard for
information security, in 2007, and obtained re-certification with an expanded scope ofConvert medical certificates into digital data and introduce an automaticconversion system for illness/surgery codes
Start a new procedure of asking customers to return claim documentation
provided via branch offices directly to the head office

Improvements in customer service
Distribute pamphlets on insurance payout
Ensure that sales representatives bring claim documents with them andprovide careful and easily understandable explanations face to face
Establish a dedicated consultation desk for insurance payout
Send brochures that describe in an easy-to-follow manner the proceduresfor submitting claims for insurance payment, together with the“Notification of Policy Details” annually provided to customers

applicability in February 2013.
During the recent re-certification, the outside accreditation body expressed high regard for our
training in large-scale disaster scenarios and other efforts. Defining the information assets
handled by our company as essential to ensuring the T&D Life Group’s competitiveness, profits,

Yasumasa Kawabata

Director and Senior Manager
Corporate Planning & Management Department
T&D Information Systems Ltd.

compliance, and image, we operate in accordance with our company’s ISO 27001-compliant*2 In-house qualification system: internal training program established to help sales, customer service and administrative personnel acquire skills and knowledge necessary forcustomer service at the time of receiving insurance payment claims in order to explain relevant procedures accurately and completely to the customers.

“Information Security Policy” to safeguard these information assets by implementing*3 Life Insurance Payment Specialist Examination: an examination system run by the Life Insurance Association of Japan to encourage mastery of the basic level of knowledge
and judgment required of payment assessors, aiming to maintain/improve human resources development and the assessment capability of payment assessors.

appropriate security measures.

† The measures listed here are those being taken by the Group as a whole or by individual Group companies.

We aim for two objectives by acquiring ISO 27001 certification: internal and external
objectives. Internally, we are seeking to strengthen internal control functions for information
security, while the external goal is to earn the reassurance and trust of stakeholders by obtaining

7*1 Payment Advisor: personnel who have acquired skills needed as consultants on insurance claims and payouts. They provide consultation to customers and also play a leadingrole at branches.

“third-party certification.”

The descriptions of insurance products provided in “Special Feature 1: Business Activity Report” are intended to explain the T&D Life Group’s CSR efforts and do notconstitute solicitation for insurance. Please see the “Product Pamphlet” and similar advertisements for more details on products.

8

To Be Deserving of Trust

Aiming for greater financial
soundness andsustained expansionof corporate value

Providing customers with peace of mind

Efforts to deal with the Great East Japan Earthquake

ERM (Enterprise Risk Management)• Conventional concept of profit/
risk management

ProfitRisk

CapitalSonosuke Usui
Representative Director andExecutive Vice President
T&D Holdings, Inc.

What is ERM?

Avoid

ExpandIncrease

Enhance corporate value while managing
each of these appropriately

ERM stands for Enterprise Risk Management, and refers to a business management
method that seeks to enhance corporate value in a stable and sustained manner while
ensuring soundness by comprehensively ascertaining the risks a company is facing andintegrally managing prof it, risk, and capital.

How does it help?
ERM is of help in management decisions not by managing risk avoidance and increases in• Concept of ERM

profits and capital separately as a conventional risk management approach, but by managing
to risk (capital adequacy) and the profit it can generate vis-à-vis capital (capital efficiency).
The T&D Life Group measures, and grasps on a monetary basis, the size of various operationalrisks, including potential losses involving insurance underwriting and asset management as wellSoundness(capital adequacy)

as those from administrative errors, reputation damage and other such causes.

Integrated
management

Profitability(capital efficiency)

At the same time, we assess the market value (on an economic value basis) of all the company
assets and liabilities, measure the difference as capital for absorbing losses when risk does infact emerge, and grasp this amount on a monetary basis. The incremental amount of capitalis regarded as a profit.
In this way we are simultaneously and integrally managing profit, risk and capital calculated
in monetary terms uniformly on an economic value basis, and making management decisions
based on the evaluation of financial soundness and profitability by comparing these.
As a life insurance company responsible for extremely long-term insurance policies, we mustfirst ensure financial soundness and then consider how we should use capital to steadily boost
corporate value. Management process for achieving such two aims, which are seemingly
excluding each other, is ERM, or ERM-based management.
9

Risk

Sales personnel,
customer service personnel,
agent/administrative personnel(branches, head office)
Visits, telephone calls

Policy confirmation indisaster-hit areas
Policies involved: approx. 211,000
99.99% of customers
successfully contacted

Assistance to disaster-struck areas
Shortly after the Great East Japan Earthquake, the T&D
Life Group began offering assistance toward recovery in thedisaster-hit areas. The Group promptly dispatched its
executives and employees to the affected areas, where they
participated in volunteer activities such as removing rubble,
conveying relief goods, and rebuilding individual homes andtemples/shrines. In fiscal 2012, the second fiscal year after
the disaster, the Group provided a broad range of assistance,
including making part of branch premises available for use
by local governments in the disaster-hit areas, coordinatingpurchases of local specialty produce from these areas, andproviding donations.

Information on how to makeinquiries provided via newspapers,
television/radio broadcasting

Insurance payout related to the disaster

Total for three life insurance companies of the T&D Life Group
Number of payments

2,044

Amount of payments

7.7 billion yen

Efforts to ensure business continuity during emergencies

Capitalthese in an integrated fashion, clarifying the extent of capital leeway a company has relative

Activities to inform customers affected by disaster

Information sent by mail[ERM]
We have introduced ERM to boost corporate
value through comprehensive risk management

To robustly fulfill the social mission of insurance companies
by paying insurance claims and benefits promptly tocustomers, the three life insurance companies of the T&D
Life Group dispatched personnel from their head offices todisaster-hit areas, who teamed up with the personnel incharge in these areas to pay visits to all customers andprovide them with information on submitting claims.
In addition, the Group utilized newspapers, television, radio
and other media to inform customers about its call center forcustomer inquiries and it extended the operating hours of
the call center. In those areas inaccessible to company
representatives due to the nuclear power plant accident,
utmost efforts were made to supply information to all
customers as soon as possible through telephone calls fromthe call center at the head office and postal mail. For
customers facing difficulties in paying their insurance
premiums as a consequence of the disaster, the grace period
for paying insurance premiums was extended, or installment
payments were arranged. Also, we reduced documentation
required for insurance/benefit payments and policyholder
loans for simpler and speedier processing.

Telephone calls

Activities to inform customers

Call center, head office organizations

Special Feature 2

ProfitEnhance corporate value through integrated
management of risk, profit and capital
ERM facilitates rational decision-making for increasing
corporate value while ensuring financial soundness basedon integrated management of risk, profit, and capital.

The T&D Life Group is endeavoring to put into place acrisis management system to ensure the continuity ofimportant business operations, including payment of
insurance money in the event of an emergency. Under thesystem we are preparing for contingencies that would makeordinary operational administration difficult—for example,
large-scale natural disasters, outbreaks of new strains ofinfluenza, and computer system shutdowns—and thatwould have a serious impact on business operations.
More specifically, the Group is striving to increase theworkability of business continuity during emergencies
through a range of measures, from acquiring alternate
business premises for use in case of a large-scale natural
disaster, back-up system functions to allow for provisional
payments of insurance money, securing substitute personnel
to continue key operations, formulating business
contingency plans against computer system breakdowns, toconducting periodic training on emergency scenarios.

Formulate business contingency plans(Computer systems, etc.)

Acquire alternate business premises

Back-up system functions(Implement provisional measures)

Continuityof businessConduct periodic trainings, etc.

Insurance payout, etc.
Secure substitute personnel

Other disaster prevention measures(Stockpiling, etc.)

Review of business continuity initiatives based upon
the experience of the Great East Japan Earthquake• Review existing response plans (review scope of assumed damage, businesses to be continued, etc.)• Secure and develop alternate business premises• Establish a contact system including communications means such as satellite telephones• Conduct various drills• Implement other measures from a disaster-prevention perspective (stockpiling, etc.)

10DigestEfforts to contribute to society andconserve the environment
In seeking to achieve sustained growth alongside society and to fulfill its public mission and social responsibilities,
the T&D Life Group is involved in a variety of social contribution programs to improve health, medical care and welfare,develop a sound society, and protect the global environment.

Supporting the Japan Down Syndrome Association
Taiyo Life and Friends of Taiyo Life Goodwill Circles have continued their support for, and interaction with, the Japan
Down Syndrome Association as supporting members, providing meeting rooms in its company building to serve as venues
for seminars held by the Association and for its Advisory Council/Board of Directors meetings.
Taiyo Life also provides support in the form of participation in the Association’s activities by company executives andemployees. In 2012, eight staff members from Taiyo Life’s Osaka Branch participated as volunteers in the “Yorokobi(Happiness) Festa 2012” held in Osaka on July 1.

Nationwide Clean Campaign
Since 1982 Taiyo Life has carried out annual clean-up activities in the vicinity of its head office as part of its social contribution
to local communities. Since 2004 these activities have been expanded as the Nationwide Clean Campaign, with branches
across the country undertaking clean-up activities in their own local communities. In fiscal 2012, a total of 8,638 employees
and their family members from the head office, affiliate companies and branch offices participated in this Campaign.
The head office (located in the Shiodome district) co-hosted the Minato Eco-conscious Consortium (mecc) with Tokyo’s
Minato Ward, joining force in tackling local beautification, with participants from Group companies and “mecc” member
companies working in the event.

Supporting the National Sports Festival for People
with Disabilities
Daido Life has been a special sponsor of the National Sports Festival for People with Disabilities since the first NationalSports Games for the Mentally Handicapped (Yuaipic)* was held in 1992, when Daido Life celebrated its 90th anniversary.
Each year it sets up a company booth in Fureai Hiroba (Get-Together Plaza), a venue for exchange with the participating
athletes, and many executives and employees serve as volunteers. Taiyo Life has also participated in these volunteer
activities since 2000, expanding the wave of the Group’s activities to support the event.
* In 2001 the National Sports Games for the Mentally Handicapped was consolidated with the National Sports Games for the Physically
Disabled and held as “the National Sports Festival for People with Disabilities.”

Forest conservation activities
Taiyo Life has established “Forest of Taiyo
Life,” a contract-based project under agovernment program, in two locations ineastern and western Japan, where employee
volunteers are engaged in forest conservation
activities. In the Forest of Taiyo Life in
Nasu-shiobara, Tochigi Prefecture, in March
2006, the company has been working incooperation with the Enna District Forest
Office and others in forest thinning andsimilar forest improvement activities as well
as forest tours in which approximately 150
people have participated in total.
At the Kutsuki Forest of Taiyo Life in
Takashima, Shiga Prefecture in November
2007, the company has collaborated with alocal NPO, the Asosatoyama Center, inforest improvement activities, including
setting up deer guard fences and raking up
fallen red pine needles, and in the “Acorn
Project,” in which local elementary students
grow broad-leaf trees from acorns and thenplant them in the forest at graduation whereapproximately 310 students haveparticipated in total.

Forest of Taiyo Life
(Tochigi Prefecture)
Date of contract

March 2006

Area

Approx. 4.8 ha

19 t
CO2 absorption (Estimate by Forestry Agency)

Kutsuki Forest of Taiyo Life
(Shiga Prefecture)
Date of contract

November 2007

Area

Approx. 12.7 ha

81 t
CO2 absorption (Estimate by Takashima City)

COLUMN

Actively addressing work-life balance anddiversity for better utilization of human resources
The T&D Life Group’s management policies include “creating a corporate environment that enables a diversity of people to enjoy job
satisfaction and demonstrate their capabilities.” To be a corporate group where employees can feel motivated and work enthusiastically, theGroup conducts various training, introduces systems for better working environments, and better utilizes and promotes personnel regardless ofsex, age, etc. In recent years we have promoted talented female employees to management positions and have hosted seminars to enhance their

Endowed open courses at universities

career consciousness, in an effort to leverage the capabilities of women and create workplaces where they can play more active roles.

As an expression of gratitude to its many supporters, Daido Life began endowing open courses at universities in fiscal 2002 as
part of the company’s centenary celebrations.
These courses provide managers of small- to medium-size businesses with opportunities for acquiring knowledge and skills
relevant to management and business, and they have been very well received by the approximately 9,100 attendees in total overthe past 11 years.
Contents of the courses are developed by each university from different angles, with a lineup of topics and lecturers that offer a
mixture of theory and practice useful in the management of smaller companies. In addition, the TKC National Federation
dispatches lecturers to talk about practical issues from the perspectives of tax and certified public accountants.

� Round-table talk held for female employees at three life insurance companies
A round-table talk chaired by Mikie Yumoto, the first female executive in the life insurance industry, was held forfemale employees of the three life insurance companies. In the event organized by a working group of female Group
employees, participants engaged in payment operations and sales at their companies heard about the circumstances atother Group companies and eagerly exchanged opinions on various topics, such as commitment to work, roles in theirrespective workplaces, and future aspirations. Details of the talk were posted in the Group newsletter for dissemination
to executives and employees.
� Executive/division manager seminar held on the topic of active roles for women

Asset management services for universities

A seminar for Group executives and division managers was held featuring Naoki Atsumi, Director of Diversity and

T&D Asset Management is providing asset management services to universities in the conviction that the true essence of
its CSR is broadly contributing to society through its core business of asset management. By providing these services, thecompany is helping establish governance in asset management and the financial foundations needed for the universities tocarry out high-quality education and research.

importance of promoting active roles for women as a corporate strategy, containing analyses and recommendations

Work-life Balance Research Department at Toray Corporate Business Research, Inc. His persuasive lecture on thebased on Mr. Atsumi’s own nursing and caregiving experiences, served as a valuable opportunity for top management
to gain a deeper understanding of the issue.

The T&D Life Group has issued a “T&D Life Group Corporate Responsibility Report: Data Edition” that gives further details on CSR. Please see the report for
information on the Group’s other CSR activities. [URL] http://www.td-holdings.co.jp/en/csr/report/

1112CSR Management

Third-party Opinion

Promotion of CSR Activities andStatus of Activities

Toward further promotion of CSR

Level UP!!

The Group CSR Committee was established in 2011 to enable the Group to

The T&D Life Group’s Corporate Responsibility Report is divided

insurance as a means? If the latter, is sufficient peace of mind

into two editions—a “Focus Edition” and a “Data Edition” —and I

provided just with the payment of insurance money? I look forward

see that this Focus Edition is intended to report with a narrow focus

to a more clear-cut vision for the long term on the role the Groupon the most important points for the Group. In this sense, the fact

should play in the face of such trends as a declining birthrate, anactivities and annual activity plans, checks/examines the progress and resultsthat the top management presents a clear-cut message at the

aging population and widening income gaps.

of implementation, and develops activity plans for the next fiscal year.

beginning of the Report is praiseworthy as indicative of the Group’s

Insurance companies are also huge institutional investors, and theirbasic stance toward CSR. I am also sympathetic with the assertion

asset management can have a major impact on the future of society

incorporated into this message that “consistently pursuing our core

and the global environment. It is highly regarded that Taiyo Lifebusiness is itself CSR for the life insurance business.”signed on to the UN Principles for Responsible Investment, a first in

Each year the Group CSR Committee sets priority areas based on

Insurance has aspects that make it difficult for the general public tothe sector early stage, and that T&D Asset Management did lastassessments by SRI rating agencies (stakeholder perspectives) and the results

determine whether a particular product is good or bad, withyear. I would like to see this extended throughout the Group, and Iof employee surveys (T&D Life Group perspectives). In fiscal 2012, “respectinsurance premiums paid from the outset but the benefits only

hope that you will exercise leadership within the investment andfor human rights” and “global environmental protection” were selected astangibly felt when insurance money is actually received. For that

asset management industry as a whole.

priority areas and we carried out CSR activities focusing on these areas.

reason, many people see the selection of insurance as a matter ofwork as one in pursuing CSR activities.

Check

The Group CSR Committee formulates basic policies for the Group’s CSR

Information is also being shared throughout the Group not only on the CSR

Act

activities to be tackled by the Group in common but also those beingDo

undertaken by individual Group companies.

Plan

trusting in an insurance company. Accordingly, conscientious
management is essential; insurance companies must design products
as advantageous as possible to policyholders and explain the detailsof these products in advance. Proving worthy of customer trust is a

FY2012 Group CSR Activities Status Report (excerpt)
Listed below are the major activities implemented as common Group measures. In addition, each Group company implements their own CSR activities.
For details on these activities, please see the “Corporate Responsibility Report: Data Edition” ( indicates a priority area for FY2012).

responsibility, and greater trust will inevitably produce greater
corporate value. This is my understanding of the message at the
beginning of the report.

Group CSR
Charter item

Our efforts

Globalenvironmental
protection

Communication
Contribution tocommunities
and societies
13

Professor, Faculty of Economics
Takasaki City Universityof Economics
Graduated from College of Policy and Planning
Sciences, Third Cluster of Colleges, Tsukuba University
in 1984. After working at Nichimen Corporation andEiwa Audit Corporation, he became an instructor in the
Faculty of Economics at Takasaki City University of
Economics, and assumed his present position in 2008.
His primary areas of research include environmental
accounting and socially responsible investment. He has
also served as Chair of the Japanese Institute ofCertified Public Accountants’ Technical Committee on
Sustainability Information Disclosure, and as a member
on the Central Environment Council’s Special
Committee on the Environment and Finance. At
present, he serves as the joint representative directorof the Japan Sustainable Investment Forum. His
principal books include Responsible Investment(Iwanami Shoten), Accounting and Investment for Social
Change (Iwanami Shoten), The Environment and
Financial/Investment Trends (author/editor, Chuo
Keizai-sha), and Environmental Management andAccounting (co-author, Yuhikaku Publishing).

Results/performance

Activities planned for FY2013

Continued working group activities by the Group’s female employees, and the threelife insurance companies jointly planned and held meetings twice for female
employees to exchange views. Posted proceedings of the meetings in the Group’s
newsletter to broadly inform executives and employees of the event. Endeavored toboost interest in taking on the challenge of career building. Held a seminar for Group
executives and division managers to share perspectives among the management teamon promoting active roles for women.

Enhance and improve Group-wide efforts by strengthening collaboration among
personnel divisions and by implementing policies in a cooperative fashion designed tofoster awareness and educate executives and employees , while confirming the viewsof female employees.

Educational activities to promote work-lifebalanceContinued to offer e-learning (9 courses in total since FY2008) to promote correctunderstanding of the work-life balance the Group is seeking.

Set out promotion of work-life balance and active roles for women as a target for the action
plan for April 1, 2013 – March 31, 2015 in line with the Act on Advancement of Measures to
Support Raising Next-Generation Children, and continue educational activities.

confirming the status quo is sufficient. This is connected with how

Aggressive hiring of persons with disabilities

Shared information within the Group on the status of hiring of persons withdisabilities. The number of persons with disabilities employed by the three life
insurance companies totaled 316 as of March 2013, of whom 41 had been newly hired
in FY2012, constituting 2.04% of the Group’s workforce.

Make further progress in creating workplaces comfortable for persons with disabilities,
and promote further hiring of persons with disabilities.

simply to sell products whereby they receive premiums and pay out

Establishment of green procurement
standards including printing, real estate,system equipment

Established “Green Purchasing Standards and Detailed Rules” and promoted priority
purchase of the products and services that helped diminish environmental impacts inprinting of product pamphlets and policy documents and in procurement of real estate
facilities and system equipment, etc. at the Group companies.

Ascertain the status of green procurement at Group companies, and communicate thisinformation among Group companies.

Reduction in electric power use
Period: FY2008 – FY2012
Baseline year:
2nd half FY2006 and 1st half FY2007
Scope: Shiodome head office building
Target: reduction in five-year average by morethan 2% compared to baseline year

Continued to take steps to deal with power shortages due to the Great East Japan
Earthquake. Pursued measures such as turning off lights during lunch breaks, putting
PCs on standby when away from the desk, ensuring tight control of air conditioning
outside working hours, and turning off copy machines and printers when not in use.
[Target ratio: 82.3% (target achieved)]

Establish the following new long-term targets for a five-year period from FY2013, withthe applicable scope extending to the head offices and branches of all core companies.
Undertake Group-wide efforts to achieve targets.
Period: FY2013 – FY2017
Base year: FY2009
Scope: all buildings owned, leased and used by core companies
Target: reduction in power consumption per floor space on a five-year average by morethan 10% from base year

Reduction in office paper use
Period: FY2009 – FY2013
Baseline: five-year average up to FY2008
Scope: Shiodome head office building
Target: reduction in five-year average by 5%

Strengthened control over number of copies, reduced meeting materials, and utilized
2-in-1 and two-sided printing.
[Target ratio: 76.1% (target achieved)]

Continue to implement such measures as strengthening control over number of copies,
reducing meeting materials, and utilizing 2-in-1 and two-sided printing.

Green purchasing ratio
Target: more than 80%
Scope: Holdings & core companies

Continued to enforce the strict internal rule of obtaining permission when purchasing
products other than eco-friendly products, which has been in place since FY2010.
[Green purchasing ratio: 95.7% (target achieved)]

Continue to implement FY2012 measures, and share information on innovative
approaches taken by other companies such as paperless meetings using iPads, policy
documents contained in CD-ROMs.

CSR activities last fiscal year.

Issuance of Corporate Responsibility Report

Issued a “Focus Edition” in September intended for employees, customers, and general
consumers, and a “Data Edition” in October primarily intended for investors. Their
English versions were issued in December.

Issue the Corporate Responsibility Report 2013, “Focus Edition” and “Data Edition”, inSeptember, with their English version in November, which reflect a third-party
opinion, results of employee surveys and assessments by outside organizations.

context of current social trends, and that our Group should exercise leadership within the investment and asset management industry as a whole.

the future, insurance companies have a minimum responsibility toPromote active roles for women as a Group
personnel strategy

Respect forhuman rights

Because insurance payments are generally not received until well in

Takeshi Mizuguchi

Implementation of Group-wide blood
donation campaigns

Blood donation campaigns were conducted in August and January at the Shiodome
head office building in collaboration with Group companies. A total of 371 persons
participated in these blood donation campaigns.

continue in business in the meanwhile. I think it commendable inthis regard that the Group is maintaining a high solvency marginand pursuing enterprise risk management (ERM).
Following the principle that “focusing exclusively on our corebusiness constitutes CSR” does not mean, however, that merely
one defines one’s business. Is an insurance company’s businessinsurance money, or is it to provide security and peace of mind using

Response to Third-party Opinion: CSR Group, Group Planning Department,
T&D Holdings, Inc.
The Focus Edition of this fiscal year’s Corporate Responsibility Report focused and reported on Group companies’ efforts to fulfill their social
responsibilities through business activities and to achieve greater soundness so as to be deserving of customer trust. The digest herein also

Similar to FY2012, implement Group’s joint blood donation campaigns in August andJanuary, when blood for transfusions tends to be in short supply.

reported on our social contribution programs, environmental protection activities, and personnel utilization efforts, as well as on the progress ofProfessor Mizuguchi expressed a couple of expectations: that our Group should clarify the role we are to play and our long-term vision in the
The Group is committed to working in concert on CSR activities to meet these expectations as well as those of the broader public so that we canearn the trust of a variety of stakeholders.

14