T&D Life GroupCSR Report 2008

A Life Insurance Group that People Can Trust

The T&D Life Group Is Supporting
People’s Living and Businesses
The T&D Life Group comprises three life insurance companies – Taiyo Life, Daido Life, and T&D Financial Life –together with an asset management company, T&D Asset Management, under T&D Holdings. Each of these three life
insurance companies has their respective strengths and uniqueness in their own specialist fields, supporting bothpeople’s living and businesses. Taiyo Life specializes in the household market, Daido Life in the small and mediumsized enterprise (SME) market, and T&D Financial Life in the individual variable annuities market.
Group Structure

Ensure the reinforcement of life insurance businesses
through the concentration of Group management resources

T&D Asset Management

T&D Information Systems

T&D Customer Services

T&D Confirm

Pet and Family Small-amount
Short-term Insurance

Other Group companies

The T&D Life Group’s Outline

1
Household market

Small and medium-sizedenterprise (SME) market

Corporate Data (as of March 31, 2008)● Date of Establishment● Location of Headquarters● Capital Amount● Number of Employees

April 2004
1-2-3 Kaigan, Minato-ku,Tokyo,
105-0022, Japan¥118.5 billion
112

Taiyo Life Insurance Company● Date of Establishment● Capital Amount● Number of Employees

1-2-3 Kaigan, Minato-ku, Tokyo,
105-0022, Japan¥37.5 billion
In-house sales representatives: 7,619
Customer service personnel: 934
Administrative personnel: 2,927
11,480 in total

Daido Life Insurance Company● Date of Establishment

July 1947 as a mutual company(Founded in July 1902 as a joint stock company)● Location of Headquarters● Capital Amount● Number of Employees<Osaka>1-2-1 Edobori, Nishi-ku, Osaka,
550-0002, Japan<Tokyo>1-2-3 Kaigan, Minato-ku, Tokyo,
105-0022, Japan¥75 billion
Administrative personnel: 3,358
In-house sales representatives: 4,307
7,665 in total

T&D Financial Life Insurance Company● Date of Establishment● Location of Headquarters● Capital Amount● Number of Employees

2006

2007

2008

(in hundred millions of yen)

Consolidated Operating Results
Ordinary Revenues

24,442

22,86023,300Ordinary Profit

1,368

1,581

1,557

355

387

367

Net Income

February 1948 as a mutual company(Founded in May 1893 as Nagoya Life Insurance Co., Ltd.)● Location of Headquarters

Financial Data
Years ended March 31

T&D Holdings, Inc.

Individual variableannuities market

July 1947 (Founded in April 1895 as
Tokyo Life Insurance Company)
1-2-3 Kaigan, Minato-ku, Tokyo,
105-0022, Japan¥36 billion
339

Consolidated Financial Conditions(in hundred millions of yen)

Total Assets

139,862

140,909

133,660

Net Assets

10,80010,902

6,772(in yen)

Consolidated per Share Figures
Net Income per Share146.19157.45149.24

Shareholders’Equity per Share
Cash Dividends
Applicable to the Year4,384.93

4,419.55

2,743.16

55.00

65.00

65.00

(in hundred millions of yen)Management Indicators
Existing Policy
Amount in Force

602,650

598,999

593,403

New Policy Amount

72,93866,34762,018Core Profit

1,272

1,733

1,597

Consolidated
Return on Equity (%)
EEV(European Embedded Value)

4.3

3.6

4.2

ー

20,721

16,216(Note) Management indicators other than ROE and EEV are based on theaggregate non-consolidated business results for Taiyo Life, Daido Life,and T&D Financial Life.
The existing policy amount in force and the new policy amount include
individual insurance and individual annuities.

About the T&D Life GroupCSR Report

CONTENTS●The T&D Life Group CSR Report was prepared for all the Group’s stakeholders to
explain in simple terms the Group’s thinking
and activities regarding its corporate social
responsibility.
●“The 2006 Sustainability Reporting
Guidelines”, which are international guidelines
on sustainability reporting, prepared by the
Global Reporting Initiative were used as a reference in preparing this report, and information
was selected for inclusion based on considerations of the materiality of initiatives undertaken. Please refer to page 44.
●The 2008 edition explains the T&D LifeGroup’s various initiatives that it views as particularly important aspects of its CSR activities
such as ensuring a solid payment management
system and other measures to restore customers’ trust, environmental initiatives, worklife balance, and social contribution activities.
●Third-party opinions and advice regarding thisreport were received from Senior Analyst Ms.
Mariko Kawaguchi of the Daiwa Institute of
Research. Please refer to page 43.
●Detailed information on the T&D Life GroupCSR activities and financial performance havebeen posted on the Group’s website, and you
may refer to it at the following website.

The T&D Life Group’s Outline

1
3

Message from the President
T&D Life Group CSR

5
6

Pursuing CSR Together
Basic CSR Policies and Promotion Structure

Feature: 1 To Properly Pay Insurance Claims and Benefits
BackgroundToward Restoring Trust Taiyo Life
Toward Restoring Trust Daido Life
Toward Restoring Trust T&D Financial Life

7
8
9
10

Sustainable Management Foundation
Corporate GovernanceRisk Management
Financial Summery

11
13
14

CSR PracticeFiscal 2007 Initiatives

16

Feature: 2 Coexistence of Society and the Environment
Coexistence of People and Forests Taiyo Life – Two Forests – 17
Coexistence of Cities and Forests Daido Life – Indoor Forest – 18
Asset Management Based on Principles for Responsible Investment (PRI) 19

19
Investments in Companies Promising Sustainable Growth 20
Environmentally Conscious Product Leasing

http://www.td-holdings.co.jp/e/●Your questions, comments, suggestions, etc.
are very welcome. We would be delighted if
you could fill in the separate Feedback
Questionnaire and send it to us.

Offer of Better Products and Services
For Greater Customer Satisfaction
Reflecting Customers’ Voices in Operations

21
26

Strict Compliance
Strict Compliance

29

Respect for Human Rights
Initiatives to Improve Employee Motivation
Initiatives as a Life Insurer Serving the Public Interest
Period covered by this report

Communication

Fiscal 2007 (from April 2007 to
March 2008)

Contributions to Regions and Societies*Information on some activities occurring in
April 2008 or later has also been included.

Pursuing Proactive Communication Activities
Activities as a Good Corporate Citizen

31
34
35
37

Global Environmental Protection
Reporting scope
The T&D Life Group companies
and public corporations. Pleaserefer to page 45.
Previous publication
January 2008
Scheduled next publication
November 2009
Organization to which the three life
insurance companies belong
The Life Insurance Association ofJapan

For the Future of the Global Environment

Third Party Opinion
Comparative Table on GRI Guidelines
The T&D Life Group’s Subsidiaries and Affiliates
The T&D Life Group’s CSR Activities/Afterword

40

43
44
45
46

Message from the President

To be a Trusted Corporate Group

Message from the President

3

The T&D Life Group is a company group whose
main members include three life insurance companies–Taiyo Life, Daido Life, and T&D Financial
Life–and an asset management company, T&D
Asset Management, under the umbrella of T&D
Holdings.
Since its formation in April 2004, the T&D LifeGroup has been working to provide customers with
optimal products and services based on the corporate philosophy of “contributing to people and tosociety by creating value under the motto Try &Discover”.
Despite our best efforts in that regard, however, reexaminations of our past insurance claim and benefit payments determined that additional amounts
should be paid out.
Furthermore, in connection with this finding, Daido
Life was issued a business improvement orderunder Article 132 of the Insurance Business Law,
and Taiyo Life and T&D Financial Life were bothrequested by the Financial Services Agency toundertake significant improvements in their business practices and to disclose their results.
Given that the payment of insurance claims andbenefits is the most fundamental and importantwork of an insurance company, it is highly regrettable that this situation developed, and I would liketo express my most sincere apologies to our stakeholders, and most especially our customers.
For the T&D Life Group, fiscal 2007 was a year for
management and every individual employee to consider what we have overlooked, and what we should
do moving forward to be an insurance group worthyof its customers’ trust and prevent a recurrence of
the insurance claim and benefit payment problems
we have had.
Taking what we have experienced as a precious lesson, we will continue to commit ourselves to listening to an even wider range of stakeholders and getting on with efforts to earnestly address various
issues in need of attention. Furthermore, throughthese efforts, we will work to provide products andservices of even higher quality than we have in thepast to be an insurance group deserving of its customers’ support.
For the T&D Life Group, CSR means maintaining
public trust in our companies, and we have positioned it our number one management priority.
To help ensure that that way of thinking is understood and shared by all of our directors and employees, and implemented, we established the T&D LifeGroup CSR Charter, T&D Life Group Compliance
Code of Conduct, and T&D Life Group
Environmental Policy in April 2006, and the T&D
Life Group Basic Policy of Strengthening theCompliance Structure, in March 2008. Together,
they constitute our basic CSR policies.
A company’s activities, particularly in the case of
the insurance business, involve extensive processes
performed by people. Our companies’ activities are
made up of individual points of contact—between
customers and in-house sales representatives oragents; between agents and supervisors; between

T&D Life Group CSR report 2008

December 2008

T&D Life Group's
Corporate Philosophy
With our “Try & Discover” motto for
creating value, we aim to be a groupthat contributes to all people andsocieties.

T&D Life Group's
Management Vision
1. Aim to provide the best products andservices to increase customer satisfaction.
2. Aim to increase the value of thegroup by expanding and creating
value in areas where the group cantake full advantage of its strengths.
3. Broadly fulfill our social responsibilities with high ethical standards andstrict compliance practices.
4. Aim to be an energetic group whose
employees are encouraged to be creative and to take action.

The T&D Life Group and its Stakeholders

Customers
Offer of excellent products
and services

Shareholders/Investors

Marketing
Agencies

Providing appropriate
returns on investments

Partnership involving mutual
cooperation and prosperity

T&D Life GroupRegional Communities/Society

Highly efficient and transparent
corporate governance
Strict compliance
Proactive communication

Undertaking activities as a community
member that contributes to society

Transactional
Partners
Ensuring fair transactions

T&D Holdings

Naoteru Miyato
President of T&D Holdings, Inc.

4
Message from the President

employees and management; between shareholders
and other investors, and IR staff; between local
communities and branch offices, and the list goeson. The results of what takes place through thesecontacts are ultimately assessed by stakeholders.
Business conditions have always been changing,and companies have always used everything at theirdisposal to adapt to changes. I believe that the ability to adapt is a critical determinant of “corporate
sustainability”.
Companies now must think of not only businessinterests, but “corporate sustainability”, which
includes social and environmental aspects. We, at
the T&D Life Group, are constantly aware that we
pursue our business as a part of society and that ourprosperity will be together with that of society.
Furthermore, we believe that we must do whatever
we can to support sustainability initiatives to protect
the global environment that underpins the society ofwhich we are a part.
It is our hope that this report will function as a
medium through which as many people as possible
can better understand the T&D Life Group’s CSR
ideas and initiatives.
This edition of our CSR report provides informationon our three life insurance companies’ approaches
during fiscal 2007 to enhance payment management, the Group’s most important function, andother measures taken to restore customers’ trust. It
also addresses our work/life balance, environmental, and social contribution initiatives.
Moving forward, we are committed to improving
our communications capabilities, so that as many
stakeholders as possible can better understand who
we are. We welcome your opinions and requests
regarding the T&D Life Group’s CSR activities.

Government
Entities

Employees

Playing a public rolein society

Providing workplaces that make work
meaningful and pleasurable

Global Environment
Protecting the living environment

T&D Life Group CSR

Taiyo Life, which has now been in business for 115 years, provides protection-oriented
products to meet the varied needs of customers primarily in the household market throughthe consulting-style approach of our sales representatives.
Taiyo Life values face-to-face communications with customers, through periodic visits andother means. Winning the satisfaction of customers, society, and employees through communications with all of our stakeholders, and working as a company to move the entirety ofsociety in a positive direction, is what CSR means for us.
Representative Director and President

Katsuro Oishi

With “customer-oriented service and sound management” as guiding principles, Daido Life has
aimed to be a life insurance company that provides customers with the greatest possible sense of
security and unmatched satisfaction since its founding in 1902.
For an insurance company, CSR means, first of all, fulfilling its social role and meeting responsibilities through principal business activities. At Daido Life, our aim is to respond to the trust andmandate of stakeholders by pursuing quality-focused management by, for example, focusing ourmanagement resources on our core business of system products sales through relationships withpartner organizations in the small and medium-sized enterprise (SME) market.
Representative Director and President

Haruo Kuramochi

Pursuing CSR Together

5

Pursuing CSR Together
T&D Financial Life specializes in sales of life insurance through bank and other OTC channels.
Our primary offerings are individual variable annuity products, which, as asset formation products in an aging society, are expected to see a growing market.
Building a solid brand in the highly promising market for individual variable annuity products
and helping customers to lead comfortable second lives by continuously offering products andservices reflecting the opinions and desires of customers and sales personnel in financial institutions is the essence of CSR for us.
Representative Director and President

Muneo Takeuchi

T&D Asset Management
T&D Asset Management, as a member of the T&D Life Group, provides asset management services to pension funds, institutional investors, and individuals.
Our aim is to respond to our customers’ various asset management needs and contribute,
through investments in companies, to the sound development of society as a whole.
Additionally, in response to our customers’ growing concerns regarding the global environment and the sustainability of society, we offer products that invest in environment-relatedcompanies in China and companies with outstanding technologies for purposes like effectively using resources.
Representative Director and President

Kosuke Arao

T&D Life Group CSR report 2008

Basic CSR Policies andPromotion Structure
T&D Life Group CSR Charter
In April 2006, the T&D Life Group established the T&D LifeGroup CSR Charter, which sets forth basic CSR policies for theGroup, to more effectively pursue CSR based on the Group’s
philosophy and management vision.
To express more concrete policies on legal compliance, theT&D Life Group Compliance Code of Conduct (➡ page 29)
was established at the same time. And the T&D Life Group
Basic Policy of Strengthening the Compliance Structure were
newly established in March 2008 to set forth the Group’s basic
policies regarding CSR and legal compliance.
To provide a clear statement of the Group’s position on theenvironment and link that position to actions, the Group established, and is actively advancing, the T&D Life Group
Environmental Policy (➡ page 40).

T&D Life Group CSR Charter
The T&D Life Group is firmly committed to fulfilling the public mission of life insurance and otherbusinesses and to undertaking its corporatesocial responsibilities based on its management
philosophy and by achieving sustainable growthalong with society.

1. Offer of Better Products and Services
The T&D Life Group will offer well-suited andhigh-quality products that meet customer
needs.

2. Strict Compliance

Within the T&D Life Group, the various departments of T&D
Holdings and of each Group company take the lead in pursuing
CSR initiatives within their business activities. The T&D
Holdings’ Group Planning Department oversees CSR activities
for the entire Group and provides progress reports to management as necessary.
In addition, within T&D holdings, CSR Promotion Project
Team is established with participation by various departments.
This Project Team discuss overall CSR directions from a Group
perspective at every level from policies forming the core of theGroup’s CSR activities to specific CSR measures, as part of astructure for steadily implementing CSR initiatives.

Group CSR Promotion Structure• The T&D Life Group will strictly observelaws, regulations and rules, and act withintegrity.
• The T&D Life Group will maintain and promote fair and free competition.
• The T&D Life Group will stand firmly
against antisocial forces and groups that
may threaten the order or safety of civilsociety.

3. Respect for Human Rights• The T&D Life Group will respect humanrights, and make efforts to enlighten all its
employees on human rights.
• The T&D Life Group will respect the individuality of all its employees, ensure a safeand rewarding work environment, anddevelop its human resources.
• The T&D Life Group will respect privacy,
and will strictly control and protect personal information.

4. Communication
Director in charge of theGroup Planning Department
CSR Promotion Project Team coordinatedby the Group Planning Department

The T&D Life Group will widely disclose its
management information in an appropriate
and timely manner to the public as well as toits customers and shareholders, and will
actively strive to maintain a dialog with all its
stakeholders.

5. Contributions to Regions and Societies
Each department of T&D Holdings

The T&D Life Group will implement socialaction programs as a good corporate citizen,
and will make contributions to the sounddevelopment of regional communities andsociety.

6. Global Environmental Protection
Taiyo Life

Daido Life

T&D
Financial
Life

T&D
Asset
Management

Other Group companies

Pet and Family
Small-amount
Short-term
Insurance

The T&D Life Group will carry out its activities
with a full awareness of the importance ofenvironmental concerns, and with sufficientconsideration given to global environmental
protection.

6
Basic CSR Policies and Promotion StructureGroup CSR Promotion Structure

Feature: 1

To Properly Pay Insurance Claims and Benefits
As a result of insurance claim and benefit payment investigations performed by the T&D Life Group’s three life insurance companies(Taiyo Life, Daido Life, and T&D Financial Life), it was determined that additional payments should be made. The T&D Life Groupwould like to express its deepest apologies to its customers and other stakeholders for the extraordinary inconvenience and concern
this has caused.
In connection with this problem, Daido Life received a business improvement order from the Financial Services Agency (FSA) on
July 3, 2008. In responding to this order, it submitted a business improvement plan to the FSA on August 1.
Even before the current problem came to light, the Group, seeing the basic mission of life insurance companies as properly paying
insurance claims and benefits, had, as a matter of course, been working to improve its operations. However, fully appreciating the seriousness of Daido Life’s having received an administrative sanction from the FSA, the Group deeply regrets the conditions leading tothis result. To prevent the recurrence of payment problems it has enlisting the resources of the entire Group to solidly implement initiatives aimed at ensuring proper insurance claim and benefit payments.

〈Background〉

Feature: 1 To Properly Pay Insurance Claims and Benefits

71

Investigation of insurance claim and benefit payments

2

The FSA administrative sanction and the submission and disclosure of a business improvement plan(Daido Life)

The Group’s three life insurance companies conducted investigations on insurance claim and benefit payments forthe five-year period beginning with fiscal 2001 and ending with fiscal 2005. As a result, it was determined that
additional payments should be made.
The investigations were completed on September 30, 2007, and all three companies announced their results and thestatus of recurrence prevention measures on October 5, 2007.

On July 3, 2008, the FSA issued a business improvement order (see below) to Daido Life based on Article 132,
Item 1 of the Insurance Business Law.
In response, Daido Life submitted a business improvement plan to the FSA on August 1 and publicly disclosed an
overview of that plan.
At the same time, Daido Life took strict internal disciplinary measures against its President and all other full-time
directors and executive officers.

Business improvement order overview
1) Improve and strengthen governance2) Improve and strengthen internal audit and other functions
3) Revise and improve measures to prevent future insurance claim and benefit payment errors, asnecessary4) Submit a business improvement plan specifying concrete measures and timing for the above
three areas by August 1, 2008, and until the complete implementation of the business improvement plan, issue implementation progress reports every six months

3

Disclosures of business improvement initiatives (Taiyo Life, T&D Financial Life)
On August 5, 2008, Taiyo Life and T&D Financial Life publicly announced the status and results of business
improvement measures regarding their payment management systems.
Both companies will continue to implement business improvement measures and will make public progress reports
on a regular basis.

〈Measures for Restoring Trust〉
Based on insurance claim and benefit investigation findings indicating the need for additional payments, Taiyo Life, Daido
Life, and T&D Financial Life, with the proper payment of insurance claims and benefits as their top management priority,
are each conducting detailed causal analyses and calling on all of the company resources at their disposal to prevent therecurrence of payment problems, and restore customer trust.
Measures being taken by each company are described on the following pages. (More detailed information has been posted
on each company’s website.)T&D Life Group CSR report 2008

Toward Restoring Trust .................................................... Taiyo Life
The status of the primary business improvement measures Taiyo Life is taking with regard to its insurance claim and benefit payment
management function is reported on below.
Taiyo Life will continue implementing these measures and will report on their status and results every six months as part of its effort
to restore customer trust.

1. Improvement and strengthening of governance
In April 2007, Taiyo Life established its Payment Reform Promotion Headquarters, as an organ immediately below the Board of
Directors and headed by its President, and is working to prevent future payment problems and further strengthen its payment management system. Under the guidance of the Payment Reform Promotion Headquarters, various measures are being planned and implemented, checked for effectiveness, and revised or supplemented as necessary, all in accordance with the PDCA (Plan, Do, Check, andAction) cycle.
With particular regard to deficient claim guidance notifications, it was determined that process revisions considering the customer’s
perspective were needed. Therefore, not only were management resources added to the Benefits Payment Management units,
Customer Service Administrative units were reorganized, personnel were added to units analyzing and applying customer opinions
and complaints based on the Customers’ Voices Information System, and the number of external members (attorneys, experts in consumer issues, and other knowledgeable people) of the Payment Assessment Special Committee, which examines the propriety of payment administration, was expanded.

2. Strengthening of checks and audits to increase abilities to detect deficient payments and claim guidance notifications
Governance is being strengthened and audit and other functions are being added to perform ex-post checks for deficient claim guidance notifications.
More specifically, in September 2008, the Claims & Benefits Quality Management Division was established within the Insurance
Claims & Benefits Department to promote independent administrative improvements by frontline units. At the same time, the audit
function was strengthened by establishing the Underwriting Auditing Division within the Business Auditing Department, so that internal audits of the payment management system could be performed by personnel with expert knowledge. Furthermore, self-check functions were enhanced by distributing the performance of audit functions to policy-related units, as well.

Insurance Claims &Benefits Department

Newly
Established

2) Strengthening of the audit function

8

Business Auditing
Department
Newly
Established

Auditors(Head office, branches)

Expiration &Claims & Benefits
Claims & Benefits Claims & Benefits
Annuity,
Quality
Education
Assessment
Claims & Benefits
Management
Division
Division
Division
Division

Primary • Insurance claim and benefit payment
management system assessment
Tasks

Business
Auditing Division

Underwriting
Auditing Division

Primary • Insurance claim and benefit payment• Insurance claim and benefit payment systemenhancement and quality improvement• Insurance claim and benefit
payment propriety assessment

3) Strengthening of self-check functions
by distributing the performance ofaudit functions to policy-related units

Tasks

management system audits• Policy underwriting system audits• Policy management system audits

Underwriting & Selection Assign
Department

Examination
Manager

Policy Service, Conservation & Assign
Premium Receipts Department

Examination
ManagerGroup Insurance & Pension
Administration Department Assign

Examination
Manager

Enhance the examination and checking function by assigning
examination managers to policy-related units other than the
Insurance Claims & Benefits Department.

3. Operational improvements to prevent future insurance claim and benefit payment errors
Recognizing the need to make operational improvements in order to effect payment administration improvements, efforts were madeto improve customer relations and the provision of information to customers by assigning Payment Advisors (internal training personnel) to locations throughout the country and conducting employee training within branches. Additionally, a claims guidance system isbeing built to help ensure that customers are able to make payment claims in all cases where they should. This system includes elements like the establishment of the Claims & Benefits Consultations Division to receive questions regarding the payment of insurance
claims and benefits, the introduction of an External Attorney Consultation System that is free of charge to customers, company coverage of expenses for physical examination certificates when claims are denied, and expanded handling of specified agent claims riders.
The principal initiatives being taken to improve the provision of information and guidance to customers in order to prevent payment
problems are shown below.
1) Principal initiatives for improving the provision of information and guidance to customers
When selling or soliciting purchases

When reports or claims are received

When payments are assessed

When payments are made• Distribution of the pamphlet,• Preparation of a customer relations manual• Enhanced training on the receiving of reports• Improvement of name

• Enhancement of details and• Enhanced training on a

• Inclusion of coverage details and self-check“Claim procedures for
insurance benefits”

payment of insurance claims
and benefits for sales andcustomer service
representatives

identification accuracy

for sales and customer service representatives
sheets together with claim forms• Adaptation to the system forpromoting the sending of claim
guidance to customers• Revision of physical examination certificate
forms

payment statements. Provision ofclearly worded claim
recommendation guidance provided
when outpatient or long-term
hospitalization riders are added.
• Follow-up (reminder) after certain
amount of time when a customer
files a claim while hospitalized2) Future initiatives• Improvement and strengthening of internal management systems• Digitalization of physical examination certificates• Standardization of reception procedures through use of the
Reception Simulator• Revision of claim forms to prevent claim guidance errors• Development of products that make it easy to submit multiple
claims simultaneously• Receipt of payment consultations via cell phone by in-house sales
representatives• Clarification and simplification of policy provisions• Establishment of a new internal qualification system for examiners

Feature: 1 To Properly Pay Insurance Claims and Benefits

1) Rapid issue identification and speedy
administrative improvements through afrontline payment examination system

Toward Restoring Trust ........................................... Daido LifeThe business improvement plan submitted to the FSA on August 1, 2008 enhanced measures already set forth and embarked upon byadding new recurrence prevention measures to, for example, further strengthen governance and internal audit functions, and create
operations that are easily understood from the customer’s perspective.
An overview focusing on the business improvement plan’s new recurrence prevention measures is shown below.

1. Improvement and strengthening of governance• Establishment of the Claim Payments Management System Committee

In addition to measures like preparing basic payment
policies and strengthening the system for reporting to
the Board of Directors, a committee headed by the
President was established directly below the Board of
Directors.

This committee will significantly improve Board of Directors and management
oversight of insurance claim and benefit payment operations to allow the Board of
Directors to take the lead in taking the effectiveness of recurrence prevention
measures, and, when necessary, take appropriate steps to revise, improve, or supplement existing measures, based on the results of checks.

2. Improvement and strengthening of internal audit and other functions

The following assets have been added to measures such as assigning experienced payment operations personnel to internal audit units,
and enhancing audit plans.
• Enhancement and strengthening of internal audit units• Enhancement and strengthening of monitoring units

Adding to the Business Auditing Department (an internal

Placing responsibility for monitoring the implementation status and effectiveness of recurrence prevention measures in the Risk Management Department(a risk control unit), roles were clarified, as required in provisions on the division of duties, and the capabilities of the Risk Management Department wereenhanced to permit monitoring at the required level.

audit unit), the Claim Payments Auditing Division was established to focus on audits of payment operations.

3. Measures to prevent future insurance claim and benefit payment errors

Feature: 1 To Properly Pay Insurance Claims and Benefits

9Efforts to implement measures to accomplish objectives, such as enhancing information provision and reducing the number of products, have been taken to date. Examples include reconstruction of customer-oriented operation processes; enhancement of systems,
provisions, and manuals for insurance claim and benefit payments management units; and advancement of efforts to automate benefit
payment management. These measures, however, will be supplemented with those described below.
• Improvements in customer relations• Enhancement of the capabilities of insurance claim and benefit payments management units• Substantial bearing of physical examination certificate expenses by thecompany• Inclusion of “outpatient benefit payment claim forms” when sending
payment statements to customers who may require outpatient care following hospitalization• Revision of physical examination certificates and consideration of claim
form integration• Improvement of check sheets used by customers when submitting claims• Enhancement of reviews with the goal of shortening the time up to theprovision of claim recommendation or other guidance• Assignment of personnel familiar with health care administration• Other• Confirmation via customer surveys• Expansion of the functions of the Insurance Benefit Adjudication Council
and the changing of the council’s nameRecurrence Prevention Measures (Overview)
Customer

Customer relations improvements
At the time of signing a contract

During the contract period

At the time of claiming

At the time of contract termination• Provision of “Guidance for submitting claims”• Enhancement of training for in-house sales
representatives• Clarification of policy provisions and revisionof explanatory materials used in sales• Introduction of rules calling for the oral readingof “Agreement summaries” and “Information
customers should be aware of”• Significant reduction in number of products
and simplification of remaining products• Expansion of the specified agent claims
system• Enclosure of leaflets titled“For submission of benefit
claims” with “Policy
information notifications”• Posting of a section titled,“Please confirm mattersrelated to insurance claim
and benefit payments” on
the Company’s website• Provision of “Claim guidance information” and “Guidance for submitting claims”• Enhancement of the head office call center and establishment of a toll-freededicated telephone line to receive inquiries on payments• Addition of explanations to payment statements and enclosure of claim
recommendation information• Substantial bearing of physical examination certificate expenses by theCompany• Inclusion of “Outpatient benefit payment claim forms” when sending payment
statements to customers who may require outpatient care following
hospitalization• Revision of physical examination certificates and consideration of claim form
integration• Improvement of check sheets used by customers• Addition of warnings for customers
to pay particular attention to claim
forms,
procedure
completion
notifications, and other important
documents when a policy expires oris canceled

Strengthening of internal management
Enhancement of the capabilities of
insurance claims and benefits
payment management units• Organizational strengthening and staff
increases• Strengthening of training systems• Enhancement of review systems• Assignment of personnel familiar with healthcare administration

Advancement of automation

Enhancement of rules and manuals

Other• Introduction of a verification function
and text conversion of physicalexamination certificates, and othersystem enhancement steps• Addition of system staff• Enhancement and systematic organizationof rules and manuals• Periodic revision of rules and manuals• Strengthening of cooperation between productdevelopment units and payment management
units when products are being developed orrevised• Enhancement of complaint response capabilities• Confirmation via customer surveys• Expansion of the functions of the Insurance
Benefit Adjudication Council and the changing of
the council’s nameStrengthening of governance
Establishment of the Claim Payments
Management System Committee• Establishment of the committee, headed by the
President, directly below the Board of Directors tostrengthen Board of Directors and management
oversight of insurance claim and benefit payments

Strengthening of internal audit and other capabilities• Assignment of experienced payment operations personnel and enhancementof audit plans• Establishment of the Claim Payments Auditing Division to focus on payment
operation audits• Enhancement and strengthening of the Risk Management Department as a monitoring unit

Strengthening of the system for reporting to theBoard Of Directors• Strengthen the system for centrally receiving insurance
payment status, internal audit result, recurrence
prevention measure implementation status, and otherreports

T&D Life Group CSR report 2008

Toward Restoring Trust ........................... T&D Financial Life
T&D Financial Life, has established Basic Policies on Payment Management System Construction and Basic Policies on Policy
Management System Construction and, based on the policy of paying everything that could be paid from the customer’s perspective, isstriving to enhance its Payment Management System, which rests on the following three components.

1. Enhancement of payment management units
2. Strengthening of the payment oversight system by establishing the Payment
Supervision Department
3. Operational enhancement from the customer’s perspective
Moving forward, ongoing improvement will be pursued based on the careful consideration of customer feedback and Payment
Supervision Committee recommendations.

• Payment Assessment Committee• Payment Supervision Committee

The Payment Assessment Committee was established to ensure
fair and correct payment reviews by examining decisions to pay,or not pay, and performing comprehensive reviews considering
the perspectives of related units. The Payment Assessment
Committee includes attorneys as external committee members.

The Payment Supervision Committee was established to help
protect the legitimate interests of policyholders by ensuring theexistence of appropriate payment systems. The Payment
Supervision Committee, in an effort to ensure the propriety of
payments from an objective perspective and further strengthen
the payment management system, includes experts on consumer
issues, attorneys and media representatives as outside committee members.

Payment Management System Diagram

Policyholder, etc

Payment Service
Department
Payment assessment
result notification(Payment Service Division No. 2)

Business Management
Department(Policyholder Management Division)

Customer
Service Center

Payment complaint

Group Insurance & Pension
Administration Department(Corporate Insurance Division)10

1. Policy cancellation by the company
due to unavoidable circumstances
2. Invalidation due to fraud or illegal
acquisition
3. Invalidation due to violation of publicmores or error
4. Other cases in which making apayment determination is difficult or
higher-level judgment is required

Payment
Assessment
Committee

Review result

Payment
supervisionfunction

Customer
Consultation
Division

Payment Supervision
Department(Payment Supervision Division)

ReportPayment review
Report of
non-payment

Complaint response

ReportCheck result

ReportConfirmation

Board of Directors

Executive Committee

Complaint analysis and development of recurrence

Recurrence
prevention
systemCommunication of complaint information
Complaint analysis andrecurrence prevention
measure referral

Compliance Department
ReportReportCompliance Committee

Payment
Supervision
Committee

1. Analysis of payment conditions and policyholder’s payment complaint, and cause determination
Offering opinions
2. Development of practical recurrence prevention measures to address the organizational,&
rule, business process, or other cause
report3. Report review results to related units and determine implementation status

Future and the ongoing initiatives for strengthen the payment management system
1) Development of rules for making payments from the customer’s perspective2) Strengthening of payment supervision via the Payment Supervision Committee
3) Strengthening of the internal audit function to develop claim guidance from the customer’s perspective4) Periodic notification of coverage details via the ”Policy information notifications”
5) Preparation of ”Examples of cases in which payments are possible and cases in which payments are not possible”
6) Centralization of claim and inquiry response services, and provision of detailed maintenance guidance to customers7) Implementation of measures supporting the interests of customers with lapsed policies
8) Development of products that make it easy for customers to submit multiple claims simultaneously
9) Verification and simplification of policy provisions

Feature: 1 To Properly Pay Insurance Claims and Benefits

Payment
assessment
function

ClaimSustainable Management Foundation

Corporate Governance

Basic Idea of Corporate GovernanceCorporate Governance11

The basic idea of corporate governance at the T&D Life Groupis summed up with the words, “pursue an efficient and transparent business management structure capable of implementing
flexible and unifying Group management”.
Based on this idea, T&D Holdings determines the Group’s business strategies, appropriately distributes management resources,
and sets capital policy. And it also accurately identifies businessrisks faced by the three life insurance companies (Taiyo Life,
Daido Life, and T&D Financial Life) and other direct subsidiaries (T&D Asset Management, and Pet and Family Small
Amount Short-term Insurance), thoroughly manages revenues
and risks for the entire Group, and constructs Group management systems. On the other hand, the direct subsidiaries, whichhave their own business strategies, develop marketing strategies
and pursue operations that apply their own strengths in order toexercise to the fullest extent their independence and uniqueness,and, thereby, increase the value of the Group.
In this manner, the Group is committed to promote and operateGroup management with due consideration to the clarification of eachrole and responsibility of T&D Holdings and its direct subsidiaries.

Executive Officer System

Corporate Governance Framework

Corporate Governance Structure Chart

T&D Holdings and its direct subsidiaries have adopted the
Executive Officer System to enhance the corporate governancestructure and the functions of the Board of Directors, by clearly
identifying the roles of directors and executive officers.

Executive Committee and the Group Management
Committee
The Executive Committee is composed of the President andexecutive officers and discusses primarily important Groupmanagement matters. The Group Management Committee
includes the President, executive officers in charge of businessplanning and business management units, and the presidents of
the Group’s three life insurance companies, who are also members of the Group’s Board of Directors. The Group Management
Committee discusses strategic matters affecting the Group as awhole.

Board of Directors
The T&D Holdings Board of Directors makes decisions onimportant T&D Holdings’ operations as well as on the Group’sbusiness strategies, distributions of management resources, andother matters as a holding company. It also oversees the activities of directors and executive officers.
The Board of Directors is composed of nine members, four ofwhom were also executive officers as of June 26, 2008, including one external director who is a lawyer and three presidents of
the Group’s life insurance companies. In principle, the Board of
Directors holds regular monthly meetings. In fiscal 2007, theBoard of Directors met a total of 26 times, including regular andad hoc meetings.

Shareholders’ Meeting
Corporate Auditors

Board of Directors
Group Compliance
Committee

T&D Holdings is required to have a Board of Corporate
Auditors. Its auditors monitor the activities of directors andexecutive officers by, for example, attending Board of Directors
and Executive Committee meetings.
The Board of Corporate Auditors consists of four members as ofJune 26, 2008, including two external auditors, one of whom isa lawyer. The Board of Corporate Auditors receives reports
from individual auditors on important audit-related matters, anddiscusses and makes decisions on these matters. In principle, theBoard of Corporate Auditors meets once a month. In fiscal 2007
it came together a total of 15 times, including both regular andad hoc meetings.

Auditors’ Office
PresidentGroup Management
Committee

Executive
Committee
Group Risk Control
Committee

Group Information Technology
and Administration Committee

Group Investment
Committee
Group Planning
Department

Board of Corporate Auditors

Board of Corporate
Auditors

Group Finance &Accounting Department

Public Relations
Department

General Affairs
Department

Risk Control
Department

Internal Auditing
Department•Business•Implementation of •Public relations •General affairs •Risk•Internal audit
planning
financial strategies•Corporate stock related management
general affairs•New business •Capital policies•Compliancedevelopment •Budget preparation•Human resources •Legal affairs•Internal control and management•Secretarial•IR
services•CSR
Guidance&
counseling

Deliberation&
reportingTaiyo Life

Daido Life

T&D
Financial
Life

T&D
Asset
Management

Other Group companies

Pet and Family
Small-amount
Short-term
Insurance

T&D Life Group CSR report 2008

Group Internal Audit System

Group Internal Audit System Chart:AuditInternal Auditing Department
Business Execution Divisions
Audit & monitoring
Guidance & counseling
Five direct subsidiaries
Taiyo Life

Daido Life

T&D
Financial
Life

T&D
Asset
Management

Pet and Family
Small-amount
Short-term
Insurance

Business auditing departments
Business execution divisions

Other Group companies

Internal Control System
Establishment of internal control system
In light of the social/public nature of the Group’s core life insurance operations, the T&D Life Group believes it is necessary toproperly control the execution of its business operations andminimize the management impact of unforeseeable developments arising out of Group operations. Based on this idea, T&D
Holdings and the direct subsidiaries have decided, throughBoard resolutions, to establish the structure as internal control
system stipulated in the Company Law.

The internal control reporting system
Given the implementation of the Financial Instruments andExchange Law, the “internal control reporting system” is being
introduced beginning with the fiscal year ending in March 2009.
The T&D Life Group has organized a system for consideringvarious matters related to the internal control reporting system,
and is moving forward with the development of a system forcreating and evaluating internal controls related to financial
reporting. For the fiscal year ending in March 2008, evaluationsof risks inherent in processes significantly impacting financial
reporting, and the controls for those risks, were performed on atest basis. Based on the results, internal control effectivenesswill be evaluated for the fiscal year ending in March 2009, thefirst year for implementation of the internal control reporting
system. Steps have been taken to rectify any deficiencies discovered by the end of the fiscal year.
The requirement to introduce an internal control reporting system is a response to society’s demand for accurate financial
statements, but the T&D Life Group believes it is not enough topassively comply with the new law. Rather, it intends to use theresults of the new reporting system, which will make various
operations within the Group visible, in standardizing operations
and securing management transparency. Based on the belief that
this will increase its value, the T&D Life Group is actively
working to build and implement internal controls.

Shareholders’ Meeting
T&D Holdings held its Forth Annual General Shareholders’Meeting at 10 a.m. on June 26, 2008. The Company’s President
chaired the meeting in which reporting items were reported on
and resolutions were voted on.
As it applied last year, measures like using the meeting venue’s
large-size electronic display to add charts and illustrations to
explanations were employed to help investors understand theinformation presented. Six of the 219 attendees asked ten questions and expressed opinions in active question and answer sessions. Resolutions were voted on afterward and the meeting,which lasted 78 minutes, was brought to a close.

The forth Annual General Shareholders’ Meeting

12
Corporate GovernanceWithin the T&D Life Group, T&D Holdings and the direct subsidiaries have established internal audit units, which perform
internal audits to effectively achieve management objectives by
examining and assessing the appropriateness and effectivenessof internal management functions and legal and other compliance, and to contribute to the improvements.
Additionally, T&D Holdings, by monitoring the performance ofinternal audits by direct subsidiaries, and other means, identifies
the internal management status of the entire Group, and provide
guidance and advice as necessary to strengthen the Group’s
internal audit systems.

Sustainable Management Foundation

Risk Management

Basic Idea of Risk Management

Risk Classification and Responses

The T&D Life Group has formulated its Group Risk
Management Policies, which set forth the Group’s basic risk
management concepts. Among the Policies, the Group, in lightof the social/public nature of the life insurance business, positions risk management as a key management priority in order tosecure sound and appropriate management, and under the T&D
Holdings’ comprehensive management, each Group company
takes responsibility for implementing appropriate risk management based on the principle of self-responsibility.

The T&D Life Group defines its major management risks asshown below. Management policies have been established foreach of these risks, and efforts are made to prevent their realization and keep them below certain levels.

Risk Management System

Group Risk Management Framework

Board ofDirectors

Corporate Auditors
Board of Corporate Auditors

Executive
Committee

Group Risk Control
Committee

Risk Control Department
Deliberation &reporting

Guidance &adviceTaiyo Life

T&D Asset Management

Daido LifePet and Family Small-amount
Short-term Insurance

T&D Financial Life

Other Group companies

Internal auditing

Risk Management

13

T&D Holdings has established the Group Risk Control
Committee under its Executive Committee to control and manage risk within the Group. The Group Risk Control Committee
receives regular and ad hoc reports on risk conditions, assessed
according to uniform risk management indicators, from thethree life insurance companies and other Group members anduses this information to identify and manage the various typesof risks faced by the Group companies. The Committee also
reports to the Board of Directors on the risks and provides guidance and advice to the three life insurance companies and otherGroup members, as necessary, as it works to enhance risk management for the entire Group.

Type of Risk
Insurance
Underwriting Risk

Legal Risk

Investment Risk

Labor and
Personnel Risk

Liquidity Risk

Hazard Risk

Administrative Risk

Rumor Risk

System Risk

Affiliate Risk

a For details on “Risk Classification and Responses”, pleaserefer to the website of T&D Holdings.

Crisis Response
The T&D Life Group has formulated its Rules on the Group’s
Crisis Management, which address the basic matters related to
the Group’s response to crisis situations. Regarding large scale
natural disasters, and other such events, these rules place thelives and safety of employees and directors above all else, recognize, based on a consideration of support to be rendered todisaster stricken areas and other contributions to society, that
continuing or rapidly restoring insurance claim & benefit payment operations is an important social mission, and set forth asbasic policies to build systems and others necessary for theabove. In addition, the Group has implemented some measures such as a systemfor confirming the status of Group
employees and directors in the wake of adisaster as well as a group-wide training
to address the possible occurrence of amajor earthquake below Tokyo, inorder to ensure the effectiveness of theGroup’s crisis response systems.

Pamphlet describing methods
for confirming the status of
employees and directors
in the wake of a major disasterT&D Life Group CSR report 2008

Financial Summery

Overview of Operations
Performance for the fiscal year ended March 2008

Corporate value (EEV)

Among major performance figures for individual insurances andindividual annuities, the Group’s three life insurance companies
recorded a total of 6,201.8 billion yen in new policies, down
6.5% from the previous year, 5,064.2 billion yen in surrenderedor lapsed policies, down 5.6% from the previous year, and, as aresult, 59,340.3 billion yen in existing policies in force, down
0.9% from the end of the previous fiscal year.
On the (T&D Holdings) consolidated income statement, theGroup recorded 1,613.1 billion yen in income from insurance
premiums, down 11.0% from the previous year, and 1,647 billion yen in insurance claim & benefit payments, up 1.0% fromthe previous year. Therefore, ordinary income came to 155.7
billion yen, down1.6% from the previous year, and net income
decreased to 36.7 billion yen, down 5.2% from the previous
year.
Meanwhile, core profit, an indicator of performance in mainstay
life insurance business for a prescribed period, came to 159.7
billion yen for the three life insurance companies combined,
down 7.8% from the previous year.

The T&D Life Group has been disclosing its embedded value(EV), one of the indicators for assessing the corporate value of astock life insurance company. Since the fiscal 2006, however,this EV approach was replaced with EEV based on theEuropean Embedded Value Principles, which has currently beenproactively introduced by insurance companies in Europe.
In performing the EEV calculations, for example, a risk-freerate is used for discount rates and yields, in order to solve someof the problems inherent in the traditional EV (TEV) approachand thereby improve the transparency of EV disclosure.

(Hundred millions of yen)

400

60.2

387

390

59.8

60

380

59.3
59

367

370

355

360

0

As of March 31, As of March 31, As of March 31,
2006
2007
2008

0

Mar. 2006

Mar. 2007

Mar. 2008

Income from Insurance Premiums(Consolidated)Core Profit(Sum of three life insurance companies)(Hundred millions of yen)(Hundred millions of yen)

20,00019,000

1,733

1,800

19,023

1,597

18,1151,600

18,00020,721

16,216▲ 4,504

13,448

10,571▲ 2,877

Value of In-force
Business

7,272

5,644

▲ 1,627

Value of New Business

848

620

▲ 228

Adjusted Net Wortha For more detailed information, please refer to the website of
Basic profit distribution policy
T&D Holdings, while paying attention to keep its own operations and those of the Group companies in sound condition, pursues a basic policy of maintain- Annual Cash Dividend per Share(Yen)
ing stable profit distributions in
80
65
65
an effort to increase shareholder
55
value, after securing retained 60
earnings required by the Group. 40
Cash dividends for the fiscal
20year ended March 2008 were
0 Mar. 2006 Mar. 2007 Mar. 2008
set at 65 yen per share, thesame as the previous year.

Solvency margin ratio
The Group’s solvency margin ratio (Note), which is one of theindicators regulatory authorities use to gauge the soundness ofan insurance company, maintains a sufficient level.
Solvency Margin Ratio

17,00016,1311,400 1,272
1,200Mar. 2007

Mar. 2008

0Mar. 2006(%)

As of March 31, As of March 31, As of March 31,
2006
2007
2008

16,0000 Mar. 2006

EEV

(Hundred millions of yen)

As of March 31, Amount of Increase(Decrease)
2008

T&D Holdings.

Net Income(consolidated)(Trillions of yen)61

As of March 31,
2007

Mar. 2007

Mar. 2008

Taiyo Life

1,045.2

1,100.4

1,000.6

Daido Life

1,254.4

1,320.6

1,096.3

T&D Financial Life

1,911.8_

1,189.7

912.4

19,841.6

17,561.0

Pet and Family Small-amount
Short-term Insurance(Note) The solvency margin ratio is an indicator used by regulatory authorities to judge whether an insurance company has insurance claim payment
ability sufficient for addressing unforeseen risks. A solvency margin ratio of
200% or higher represents that the insurance company meets one of the criteria for sound management.

14
Financial Summery

Existing Policy Amount in Force(Sum of three life insurance companies)

The T&D Life Group’s Corporate Value (EEV)

Sustainable Management Foundation

Financial Summery

New Business Strategies
Asset management business expansion
With consumers shifting from savings to investment, the asset
management business has in recent years been experiencing a
rapid market expansion, and the Group is working to develop it
into a second core business domain, after life insurance.

Voice

Voice of an Analyst • Ms. Keiko Mizuguchi
Chief Analyst and General Manager of Rating
Planning Department, Japan Credit Rating Agency, Ltd.
I have rated the T&D Life Group, which hasstrong business and capital foundations andsolid profitability, highly for its soundness,and, after considering their strategic positions

Introduction of Pet Insurance

within the Group, I have also issued relatively

The Pet and Family Small-amount
Short-term Insurance Company
began operations in April 2007
with the twin aims of providing
insurance products that help assure
pets and their owners the ability tolead healthy, rich lives together,and constantly working to provide
better customer service.

15

high ratings for member companies.
Daido Life is using its business base backed
by competitiveness in the small and mediumsized enterprise market to generate stable revenues and maintainsufficient solvency to pay insurance claims. Taiyo Life has shown
positive results in shifting to protection-oriented products for its
mainstay household market, which will help to improve its revenue
structure. And T&D Financial Life is developing its annuity business, which is based on its revenue/risk management systems,
and concentrating on developing sales as a specialized company
for bank OTC, etc. As a whole, each Group company has become

Financial Summerycompetitive in its own business area.
The Group actively discloses information such as EEV, a compre-

Pet Insurance pamphlet

hensive market indicator. I will be watching to see their further
approaches to disclosing corporate values as well as establishinginternal control systems based on their economic value assessedby the Group.

Ratings
Three life insurance companies of the T&D Life Group have obtained the ratings regarding the solvency to pay benefits.
As of the end of October 2008

Rating Agency
Standard & Poor’s (S&P)

T&D
Taiyo Life Daido Life Financial
Life

A

A

Japan Credit Rating Agency
(JCR)

A+

AA-

A

Rating and Investment
Information (R&I)

A+

A+

A+

AA-

Fitch Ratings
Moody’s Investors Service(Moody’s)

A1

Exclusion of liability:
The above ratings represent the opinions of credit rating agencies and do not guarantee any actual payment of insurance
claims.
Please note that these statements are based on numerical figures and other data as of a certain date. Therefore, theratings may change in the future.
The rating agencies listed above are designated as such by order of Japan’s Cabinet Office. The plus (+) and minus (–)
signs following the ratings show the relative standing within the major rating categories.
The three life insurance companies formally asked the rating agencies to evaluate them and are rated as shown in the table
above.

•Rating definition
Standard & Poor’s (S&P)………Insurer Financial Strength Ratings
Rating A:
An insurer rated “A” has strong financial security characteristics, but issomewhat more likely to be affected by adverse business conditions than are
insurers with higher ratings.

Japan Credit Rating Agency, Ltd. (JCR)………………………Insurance Claims Paying Ability Ratings
Rating AA:
A very high level of capacity to honor the financial commitment on the
obligation.
Rating A:
A high level of capacity to honor the financial commitment on the obligation.

Rating and Investment Information, Inc. (R&I)……………………………Insurance Claims Paying Ability Ratings
Rating A:
A high degree of capacity for payment of insurance claims and excellence in a
few key factors of evaluation.

Fitch Ratings, Ltd………………Insurer Financial Strength Ratings
Rating AA:
Insurance claim paying capability is extremely high, the probability of aninterruption or termination of payments is extremely low, and the ability to meet
obligations to policyholders and other parties without delay is extremely high.
There is no risk of significant negative impacts from anticipated changes in
conditions.

Moody’s Investors Service (Moody’s)……Insurer Financial Ratings
Rating A:
Rating for insurance companies with favorable claim payment ability. The
Company, however, has factors that may impact its claim payment ability insome point in the future.

CSR Practice

T&D Life Group CSR report 2008

Fiscal 2007 Initiatives

Activity Area and Main Activities
The results of the T&D Life Group’s principal CSR activities are organized by the Group CSR Charter items below.

Activity Area

Principal Activities

Pages

Feature 1 – To Properly Pay Insurance Claims and Benefits

7-10

Offer of Better Products
and● Provision of products and services responding to customer needs

Services● Measures for improving the skills of customer service personnel● Gathering of feedback from more customers and reflection of that
feedback in management

21-28● Enhancement of compliance promotion systems

Strict Compliance● Development and implementation of compliance programs

29-30● Development and application of a compliance manual● Measures addressing work/life balance

Respect for Human
Rights● Measures for protecting employee health● Implementation of an employee awareness survey

31-34● Protection of personal information● Workplace human rights education● Proactive disclosure

Communication

35-36● IR activities● Communication with stakeholders● T&D Life Group social contribution activities

Contributions to Regions
and Societies● Employee volunteer activities

37-39● Cooperation with citizens’ groups● Foundation activities

Feature 2 – Coexistence of Society and the Environment

17-20

Global Environmental
Protection● Initiatives for protecting global environment● Measures based on quantitative targets● Environmental communication

40-42

SRI (Socially Responsible Investment)
As of October 2008, T&D Holdings was kept in
the MORNINGSTAR Socially Responsible
Investment Index (Note), which is used as an
SRI benchmark.

(Note) An investment index consisting of 150 companies
selected by MORNINGSTAR Japan K.K. from among 3,600
listed Japanese companies. MORNINGSTAR selected thesecompanies based on overall valuations from the five social
perspectives of governance/accountability, markets,
employment, social contributions, and environmental consciousness, and considerations of market liquidity.

Fiscal 2007 Initiatives

16● Measures responding to employees’ desires for greater challenges

Feature: 2

Coexistence of Society and the Environment
Coexistence of People and Forests ..................... Taiyo Life –Two Forests–
Start of the “Forest of Taiyo Life”
The Taiyo Life’s forest protection and afforestation activities
were begun by applying the Forestry Agency’s Corporate Forest
System in designating a cultured Japanese larch forest in
Nasushiobara City, Tochigi Prefecture as the “Forest of Taiyo
Life” in March 2006. Since then, large numbers of Taiyo Life
employees have volunteered to perform thinning work and create
roads. In addition, forestry education has been conducted throughthe “Forest Lesson” program and trees have been planted.

Birth of the “Taiyo Life Kutsuki no Mori ”

Feature: 2 Coexistence of Society and the Environment

17

In November 2007, Taiyo Life established the “Taiyo Life
Kutsuki no Mori ” within a forested park in the part of Takashima
City, Shiga Prefecture known as Kutsuki.
To promote the forest development, Taiyo Life entered into the “Lake
Biwa/Takashima Forest Development Partnership” with the Aso
Satoyama Center, a specified nonprofit organization, in the presence ofthe Mayor of Takashima City. As an initiative undertaken in accordancewith the basic principles of Takashima City’s Shiga Prefecture Lake Biwa
Forest Development Ordinance, this partnership is the first example of acompany and an NPO cooperating in a forest development endeavor.

Thinning and use of the cut timber

Transporting cut timber

Under the guidance of an expert, what becomes an important issue
for any forest is thinning and the effective use of the cut timber.
Thinning reduces the number of trees in a given area and maintains
a certain amount of light within the forest, and is said to be necessary to promote the growth of the remaining trees.
Taiyo Life understands the importance of thinning and is pursuing
initiatives to promote the effective use of the cut timber. Timber
Voice

The “Taiyo Life
Kutsuki no Mori ”
is located at the
headwaters of the
Ado River, whichflows into Lake
Biwa. It is, therefore, necessary topass on to future
Thinning work in the “Forest of Taiyo Life”
generationsahealthy forest to protect this important water source for the Kinki
Region. Moving forward, we will continue to advance forest
maintenance and management activities together with local residents. In the process, attention will be focused on using this forest
for environmental education, as a gathering spot for the local community, and as a habitat for the Japanese dormouse and otherspecies.
(Reference) Environmental contribution of two Forests: The “Forest of Taiyo
Life” helps to improve the environment by absorbing CO2 at a rate of 23.6 tons/year(calculated by Forestry Agency). The “Taiyo Life Kutsuki no Mori ” absorbs CO2 at a
rate of approximately 81.3 tons/year (estimated by Takashima City)

cut in the “Forest of Taiyo Life” thinning operations is used to make paper, which in turn goes
into producing interim notifications sent by
Taiyo Life to customers.
Taiyo Life is also implementing the“Chopsticks Project” to promote the use of
disposable chopsticks made from timberculled in thinning operations at otherforests, and mill ends (lumber scraps).
Between the inception of these efforts in August 2006, andthe end of fiscal 2007, 360,000 pairs of disposal chopsticks wereused by Taiyo Life executives and employees at lunchtime.

Disposable chopsticks using mill ends (above) and a pamphlet using paper
made from timber cut in thinning operations (upper right)

Afforestation activities volunteer, Mr. Yoshinao Hirokawa, Minakami Craft Center
I am a woodworker in the town of Minakami in Gunma Prefecture and a volunteer forest guide at the Mitsubishi UFJ
Environment Foundation’s “Suigen no Mori (water source forest)”, located in the same town.
Since the establishment of the “Forest of Taiyo Life” in Nasushiobara City, Tochigi Prefecture, executives and employees of Taiyo Life, including the President, have worked to thin the forest, build roads, and do other work, without relying
on other people or professionals, and I have constantly been amazed at their efforts. They have learned the importanceof thinning, have used the timber they cut to make paper for their business, and adopted for internal use disposable
chopsticks made from culled timber and mill ends, and I have been surprised by their planning and execution capabilities.
I’ve been involved with the “Forest of Taiyo Life” since its beginning, assisting with each of their forest development
activities. I’ve seen the seriousness with which they approach everything and have been left with the impression that
Taiyo Life is a company where the employees follow the examples set by their leaders. I’m looking forward to greatthings to result from their activities.

T&D Life Group CSR report 2008

Coexistence of Cities and Forests ..................... Daido Life –Indoor Forest–
Indoor life-nurturing laurel forest

To maintain a space for coexistence
The atrium’s green space spans a total
area of 2,500m2. Of that space, 1,000m2
has been made to recreate the feel of thehills and fields of western Japan withplantings of approximately 80 plant
species medium-to-tall in height such as
camphor tree and camellia, and small inheight including sasanqua and azalea,
as well as undergrowth.
Numbering over 2,500 in all, the trees
and plants in the green space depend on human care to live. That
requires the study of natural processes, simulation of wind and rain,
removal of dust from the leaves of trees, alertness to the presence ofharmful insects and diseases, and other types of efforts to protect
and nurture the atrium’s plant life. The succulent leaves of thesewell-tended flora could be seen as natural air purifiers.
Within the atrium, greenhouse conditions are maintained at around
18; in the winter and 27; in the summer, making for an environment in which humans can coexist with plant life. What’s more,
Voice

the interests of the local community and the environment have beentaken into consideration through lighting and air-conditioning energy efficiency and other measures.
Through the ingenuity of countless contributors to the green space,this pioneering initiative has been maintained for over 30 years. It
has come to be loved by the local community as a space for the city,
people, and a forest to coexist, and has been praised as a primeexample for the development of future urban greenery technology.

Atrium plant life manager, Mr. Masahide Izumikawa
Chief, Green-Project Section, KANSAIMEISO.Co,Ltd.
With regard to the atrium’s green space, I have been handed a task that is important and enormous
given the need to consider the relationship between urban architectures and greenery from the perspective of bringing people and plant life as close together as possible.
I was completely overwhelmed by the seriousness with which this project, the first of its kind in Japan,
was undertaken. Managing the plant life in this green space requires an approach from the perspectiveof cultivation management based on plant physiology and ecology, and I have sought the advice of elder
colleagues, university professors, government experts, and others with specialized knowledge of plantlife and flowers in taking up the challenge before me. I see my mission as recognizing every signal thetrees and plants, which cannot speak, give me and providing them the right green space environment.

18
Feature: 2 Coexistence of Society and the Environment

The Daido Life Esaka Building was completed in1972 as the first structure symbolizing Suita City,
Osaka, the site of the EXPO ’70. Driven by hopes
stemming from that event, Suita City had been thefocus of urban development plans that would make itinto a second city center for Osaka. The Daido Life
Esaka Building was constructed to help mark 70th
anniversary of the founding of Daido Life andbecame the seat of the Company’s head office. To
create a rich urban environment and contribute to the
local community, a full-blown green space was established inside the building, making it one of Japan’s
most groundbreaking office projects.
The basic concept of the green space is the image ofthe life insurance business nurturing life. Seeing thevalue of a public space connecting the Esaka subway station and Esaka Park, a green environment simulating a laurel forest in westernJapan and giving people a place to be in harmony with plant life was created in an atrium occupying a 50m x 50m, 17m-high space on
the building’s first two floors. With its dense vegetation, the purpose of this space is to be a place where visitors can relax, and whereresidents can gather. This green space, where people and plant life come together, is still thriving and providing visitors with a pleasant, relaxing atmosphere, and relief from everyday stresses the moment they enter.

Feature: 2 Coexistence of Society and the Environment

Asset Management Based on Principles for
Responsible Investment (PRI) ......... Taiyo Life

Environmentally Conscious
Product Leasing ............. T&D Lease

Signatory to the Principles for Responsible Investment

Japan’s only leasing company focusing
on the LP gas industry

In March 2007, Taiyo Life became the first Japanese life insurance company to sign onto the Principles for Responsible
Investment (PRI) (Note 2) being advocated by the United Nations
Environment Programme Finance Initiative (Note1)(Note 1) UNEP FI=The United Nations Environment Programme Finance Initiative
The United Nations Environment Programme Finance Initiative is anextensive and close-knit partnership of financial institutions in approximately 160 countries. Seeking to work with numerous financial institutionsin promoting both economic development and environmental protection,
UNEP FI promotes the sharing of information and sponsors cooperative
activities.
(Note 2) PRI=The Principles for Responsible Investment
The Principles for Responsible Investment is a set of six principles constituting a code of conduct encouraging institutional investors to consider
environmental, social, and corporate governance (ESG) problems in pursuing their investment activities.

ESG initiatives

Feature: 2 Coexistence of Society and the Environment

19

In managing the premiums paid by its customers, Taiyo Life considers not only profitability, safety, and the public good, but also
environmental, social, and corporate governance (ESG) (Note 3)
issues.
Taiyo Life has incorporated the concepts of PRI, which it hassigned on to, in its Basic Asset Management Rules, and has
explicitly stated that they are a part of the basic approach Taiyo
life takes in managing assets.
As part of its investment and lending activities following thisbasic approach, some investment fund guidelines have been
written to explicitly state that assets will be managed based on
ESG considerations, and investments are being made in environmental funds. And voting rights for Japanese equities held
are being exercised in ways that are more consistent with PRI
concepts, than in the past.
To learn more about PRI concepts and what other PRI signatories throughout the world are doing to implement them, executives and employees at investment units are actively participating in PRI training led by outside instructors.
(Note 3) ESG
E= Environment, S= Social, G= corporate Governance

Since its founding in 1966 as Japan’s only leasing company
focusing on the LP gas industry, T&D Lease has developed its
business of leasing gas meters and all other types of LP gas
equipment. T&D Lease is working from a foundation consistingof years of expertise and know-how to provide ever higher levels of service to gas companies and consumers as a professional
lease company serving the energy industry.

Helping to protect the environment by promoting the use of clean energy equipment
LP gas is referred to as “clean energy” or “clean gas” because
its use results in relatively little CO2 and SOx emissions, which
are regarded as causes of both global warming and air pollution.
T&D Lease provides a lease structure that makes it easy tointroduce high-efficiency “clean gas” water heaters and electric
generator/hot water home heating systems that reduce energy
consumption. As such, T&D Lease, together with the LP gas
industry, is helping to promote the use of energy-saving gas
equipment and protect the environment. Additionally, as a
response to the public’s growing interest in the environment,
T&D Lease also handles solar power equipment.

Voice

Katsuya Baba

Kiyotaka Koike

General Manager of Planning Department
Gas Energy Sales Headquarters, T&D
Lease

Deputy General Manager
Planning Department and Division

LP gas is social infrastructure used by approximately
half (25 million) Japanese households. And we want
to increase the number of people using high-efficiency gas equipment by getting the word out about thebenefits gas brings to daily life–like the softer feel gas
dryers give to clothing and the warm comfort of floor
heating. Many believe that, amid growing environmental awareness among consumers, adoption ofenvironmentally conscious gas equipment will grow.
And we believe that we’ll be able to make an evengreater contribution to the environment through thecomprehensive consulting services we provide to ourcustomers, LP gas companies.

T&D Life Group CSR report 2008

Investments in Companies Promising Sustainable Growth ........ T&D Asset Management
T&D Asset Management, believing that companies that can contribute to the development of an environmentally friendly society
are particularly well-suited for achieving sustainable growth amid growing environmental and other global crises, has establisheda fund for investing in these kinds of companies

Focusing on environmental businessin Greater China

My focus on corporate sustainability began when I started wondering what we could do to support
the T&D Life Group’s emphasis
on social responsibility, and began
studying the matter. My studies
led to the desire to establish a 20or 30-year long-lasted fund basedon compliance with responsible
investment principles. The fundKuninori Takada
we are presently managing, theGeneral Manager of ProductAlliance Department
Certified International“China Environment-related
Investment Analyst
Business Fund”, more commonly
known as the “Green China”, benefits the global environment
through investments in companies supporting sustainablegrowth of the Greater China region. I believe this fund is verysignificant for its promotion of efficient capital use.
Furthermore, for T&D Asset Management, sustainable growth
is a key segment product for individual investors.

In June 2008, T&D Asset Management
established the “China Environmentrelated Business Fund”, more commonly
known as the “Green China”, to invest incompanies engaged in environmentrelated businesses in Greater China.
China is viewed by many as being late toaddress environmental concerns, but,through avenues like the inclusion ofenvironmental measures in the governShigeki Nakai
ment’s economic policies, it is actively Chief Manager
Investment Trust Fund Sales
taking on environmental problems. That Department
alone would mean plenty of business opportunities, and it is our judgment that companies pursuing environment-related businesses in China
offer extraordinary sustainable growth potential. Many people are surprised to hear China and the environment mentioned in the same breath,but can understand the outstanding growth potential of environmental
businesses in China once the conditions on the ground are explained tothem. Going forward, I intend to take as many opportunities as possible
to talk about the compelling nature of this fund.

China Environment-related Business Fund Common Name: Green China
Open-ended securities investment trust fund/International equities type (Asia & Oceania)·Investors bear the following expenses
Upon application Front charge : An amount calculated based on a rate of up to 3.15% (3.0% after taxes) of the application
amount, with the rate to be specified by the distributor.
While holding period Trust fee : An amount equal to 1.995% p.a. (1.9% after taxes) of total net asset.
Audit fee : An amount equal to 0.00735% p.a. (0.007% after taxes) of total net asset.
Other expenses : Custodial, transfer agent, and other expenses are incurred by the Fund. The fees varydepending on factors like investment conditions, and it is impossible to provide specificinformation on rates, maximum amounts, and other such matters ahead of time.
Upon redemption Exit charge : An amount equal to 0.3% of net asset value on the first business day following theredemption application date
Redemption fee : Not applicable* The total amount of fees and other charges due varies depending on holding period and other factors and, therefore, cannot be presented.

·Primary risks of the Fund

Primary risks

The Fund invests directly or indirectly, via beneficiary securities in a China
Environment-related Mother Fund, in equities and other investment instruments withprices that vary, so the net asset value of the Fund will fluctuate accordingly.
Consequently, investment principal is not guaranteed. Additionally, revenues, yields,
etc. for the Fund are uncertain. Gains and losses generated by fund assets accrue
entirely to investors.

price fluctuation risk
° Equityrate risk° ExchangeCountry° Credit riskrisk° Interest rate risk
° Liquidity risk°

* Regarding details on fees and risks, it is strongly recommended that those considering investment read the fund prospectus.

Disclaimer·This page (page 20) presents material prepared by T&D Asset Management for

Asset management company

solicitation purposes. Although this material was prepared based on information judged
to be reliable, no guarantees of accuracy or completeness are made. The opinions andprojections contained in these materials reflect the Company s best judgment as of the
http://www.tdasset.co.jp/en/index.html
indicated date and maybe revised at any time, without notice.
·Investment trust funds are products that entail risk and invest in equities, government andCorporate Name:corporate bonds, and other securities with prices that vary (investments in overseas
T&D Asset Management Co., Ltd.
securities also entail exchange rate risk), therefore, investment performance will vary
Registration Number:depending on market conditions and other factors. Consequently, investment principal is not
Director General of Kanto Finance Bureau
guaranteed. Gains and losses resulting from investment activities accrue entirely to investors.
(Financial Instrument Firm) No. 357·Unlike deposit and savings accounts, and insurance policies, investment trust funds are
Membership:
not protected by deposit insurance, savings insurance, or an insurance policyholders
The Investment Trusts Association, Japan
protection corporation. Furthermore, investor protection fund coverage does not apply to
Japan Securities Investment Advisers Association
fund shares purchased from a registered financial institution.
* When considering the purchase of the Fund, please read a copy of the latest prospectus, which will be provided by the distributor,
before making a purchase decision.

T&D Asset Management

20
Feature: 2 Coexistence of Society and the Environment

Reflecting the Group’s emphasis onsocial responsibility

Offer of Better Products and Services

For Greater Customer Satisfaction
Group’s Unique Business Models to Meet Various Customers’ Needs

Taiyo Life ...................................................................................................................................................................................................................
Taiyo Life offers medical, nursing care, death benefits, andother protection-oriented products to the household market
through its in-house sales representative channel. Housewives
make up the bulk of policyholders, and approximately 70% of
new individual insurance and individual annuity policyholders
are women.
In the past, endowment insurance and other savings-oriented
products that were easy for housewives to purchase were leading products, and the focus of sales efforts. Now, however, theprotection-oriented products such as medical, nursing care, etc.
have become Taiyo Life’s main force, reflecting Japan’s aging
population, that are to meet increasingly diverse customers’
needs.
Taiyo Life has in-house sales representative channel, and thosein-house sales representatives regularly visit customers, hear
their needs, and make recommendations on the best insurance
products to meet their needs. They also provide customers withadvice on changing their coverage to address new sets of needs
that arise with important life events like marriage, childbirth,the entrance of children into school, and retirement.
Additionally, customer service staff regularly visits customers
to provide information on new products and services, perform
services related to various procedures, and hear customer
desires and other feedback.
Taiyo Life offers the best products and services through suchdetail-oriented, face-to-face consultation-style sales efforts, andworks to enhance its services, so that it can be a lifelong partner
for its customers.

For Greater Customer Satisfaction

21

Daido Life ..................................................................................................................................................................................................................
Daido Life positions system products sales through relationships with partner organizations in the SME market as its corebusiness. It offers benefit programs that cover various risks
faced by organizational members and SME customers, througha joint effort with organizations including companies, tax
accountants, or certified public accountants as their members(Note). As shown in the results in 2007 where business market
policies account for more than 90% of new policy sales, it specializes in the SME market.
Daido Life sells insurance through two primary channels–thein-house sales representative channel and the agent channel,
which is comprised mainly of tax accountants. Its individual
term life insurance, which provides extensive protection for a

low premium and is an optimal product for company security
system, has gained the largest share in the life insurance market, representing 21.4% as of March 31, 2007.
Daido Life will continue to make every effort to offer the mostsuitable insurance in order to protect its SME customers fromvarious risks around them, by taking advantage of its considerable experiences with 380,000 companies.
(Note)In 1971, Daido Life began applying Major Comprehensive Protection System for
Company Managers of Zenkoku Hojinkai Sorengo (NFCTA: National Federationof Corporate Tax-Payers Associations), and Nozei Kyokai Rengokai (TPA:
Federation of Tax Payment Associations), and in 1976, Company Protection
System of TKC National Federation to sell life insurance products to the member
companies, tax accountants, and certified public accountants.
The TKC National Federation is an organization of professional accountants as a
network of tax accountants and certified public accountants dedicated to contributing to the realization of just taxation and the ongoing prosperity of client companies.

T&D Financial Life ...................................................................................................................................................................................................
T&D Financial Life, under its management policies of“enhancing the compliance system as well as the internal control system that devices to protect customers”, “expanding
financial institution sales channels to create a new growthstage” and “maintaining extremely solid operations by increasing profitability”, offers life insurance through banks and other
OTC sales channels.
Sales of life insurance via banks and other OTC channels are
expected to experience strong growth in the future. In
December 2007, all regulatory restrictions on insurance products that can be sold through banks or other OTC channels
were lifted. As a result, it has also become possible to sell vari-able annuities and other traditionally popular asset formation
products, and medical insurance and other types of primarily
guarantee-type insurance products.
T&D Financial Life strives to develop new products for customer needs, and provide high-quality service through operators who respond to inquiries and claims received by telephonefrom customers throughout the country.
Moving forward, T&D Financial Life will continue its efforts
to increase customer satisfaction by providing straightforward,
yet unique products and services under an overriding management policy of taking the customer’s perspective.

T&D Life Group CSR report 2008.......................... Supporting families by providing

Voice

security in all aspects of life

In-house sales representative, Emiko Miichi
Ikebukuro Branch, Taiyo LifeOne of my customers, the president of a building contracting business, says that building ahouse doesn’t end once it’s constructed. It’s
important, he says, to continue maintaining it.
Life insurance is the same, and sales representatives believe that our actions must be driven
first of all by awareness of the importance ofclaim and benefit payments.
I think that underpayments of claims and benefits resulted partly from inadequate efforts tovisit customers. In my case, I regularly visitedcustomers after they purchased policies. However, upon later asking them
about claim and benefit payments, I discovered that some customers mistakenly thought that benefits would not be paid for surgery. The discovery
of underpayments has spurred us to re-examine the approach we take existing customers.

Business ModelHouseholds(mainly middle aged and elderly
people, especially housewives)

Direct home visitsMid-sized death benefits, medical, nursing
care, and other protection-oriented products
Serving mainly major metropolitan areas
and major regional cities
In-house sales representatives: Approx. 7,600

TAIYO-LIFE.......................... Supporting the SMEs, the backbone of the Japanese economy

Kawasaki-Minami District Office, Shin-Yokohama Branch, Daido LifeAt present, I have about 100 customer companies that are members of NFCTA. Every day, I
pay regular visits to my customers based on aschedule I assemble for each month. Each time I
visit a customer, I listen carefully to what theysay, determine whether they have unmet needs,
and make appropriate recommendations. In
addition, when discussing insurance, I never use
industry jargon that is difficult to understand.
As a sales representative, I realize my greatest
joy when I recommend the best insurance product for a customer, and the customer is pleased with my recommendation.
That also helps me to build trust-based relationships. I’m even invited to go
along on trips customers arrange for their employees, and those times are icing
on the cake for a sales representative.

Business ModelSME
SME policyholders:Approx. 380,000

Individual term life insurance
Partnerships with SME-related organizations
Company organizations(NFCTA, TPA, etc.)
In-house sales representative:
Approx. 4,300
Non-life insurance agencies:
Approx. 3,000

Tax accountant and
CPA organization(TKC National Federations,
local TPAs, etc.)
Tax accounting and Certified
Public Accounting firms:
Approx. 11,300

DAIDO LIFE.......................... Supporting security for life after
retirement through variable annuities
Business Model

Customer

Variable annuity
Sales through banks andsecurities companies
Banks including credit associations: 54
Securities companies: 3
Other: 2
As of September 30, 2008

T&D FINANCIAL LIFE

In-house sales representative, Akio Shimada

Voice

Wholesaler, Kunihiko Kaku
Sales Promotion Division Manager
East Japan Promotion Office No.1, Business Promotion Department, T&D Financial Life

The wholesaler’s role is to support the sales activities of financial institutions acting as sales agents,
and what is most important about our work is thedegree to which we can increase the number ofpeople who share our feelings. In doing that, it iscritical to work and go through a difficult phase
together with agents.
For example, we put our heads together with staff
at agents facing particularly tough sales competition to work out solutions. And when we achieve
our goals, we share the joy. It is also important that
customers clearly understand policy details, and necessary to carefully explain
those details to them in easily understood language. At a time when trust in insurance companies has been shaken, I think that that is something each of us can do.

For Greater Customer Satisfaction

22
Voice

Offer of Better Products and Services

For Greater Customer Satisfaction

Services at the Time Agreements Are Signed

Full Range of After-Sales Services

The Group’s three life insurance companies make the most of
the advantage afforded them through their face-to-face sales
approach and provide customers with explanations they canclearly understand.
Additionally, when agreements are to be signed, customers areprovided with documentation to help them fully understand thesubject insurance product and confirm that it meets their needs.

After-sales services by customer service staff ....................................... Taiyo Life

A gr eem ent S ig ning StageFor Greater Customer Satisfaction

23

Recommendation
Stage

Primary Documentation

Life insurance policies are long-term products, spanning 20 or
30 years, for example, therefore after-sales service is important.
At Taiyo Life, customer service staff specializing in the provision of after-sales service regularly visit customers to provide
information on new products and services, follow-up with various procedures, and gather information on customer needs anddesires.
Customer service staff strive to provide customers with conscientious service — in other words, understand and apply concepts of hospitality — and do their best to deliver high quality.

Clearly worded“Product Pamphlet”

Voice

Customer service staff, Yukiko Takahashi
Funabashi Branch, Taiyo Life
“Product Summary Sheet”(agreement summary)tailored to the life plan of eachindividual customer“Notifications of Important Matters”(information customers should beaware of) calling the customer’s
attention to particularly important points“Policy Leaflet and Policy Provisions”
containing an explanation of insurance
policy and a discussion of rights“Intent Confirmation”
as a final measure for ensuring thatthe customer’s needs are met by
the subject insurance product(Intent Confirmations were introduced in June 2007)

One of my most important concerns in
my daily work is paying careful attention to each individual customer. In
the past, starting a simple conversation with a customer has resulted in
the customer’s telling me about his or
her hospitalization, and allowed me tohelp them apply for benefits.
Last year, while delivering the pamphlet, “ Claim
Procedures for Insurance Benefits”, I discussed insurance
and requests for payments with customers and received
many thanks for my efforts. That led to a deepening of myrelationships with my customers and made the year one inwhich I was able to renew my feeling of gratitude toward
them. More recently, the amount of time required for inhouse training has increased, but I intend to use what I
learned to further improve our customer relationships.

Enhancement of sales support system .....

Daido LifeIn May 2008, Daido Life completely updated its “Ace Navi”
sales support system to enhance and strengthen primarily thevarious customer-service support functions and information
security functions to protect personal information.
For example, regarding the status of various procedures concerning customer policies (policy changes, premium transfer
status, etc.) and matters like scheduling of customer visits, thesystem was improved to promote faster in-house sales representative responses and more detailed customer services by always
displaying the customer’s latest information on the first screen
to appear on the in-house sales representative’s computer
screen.
In addition, important information gathered from customers will
no longer be stored on personal computers, but rather on a central server as a part of enhanced efforts to prevent information
leaks.

T&D Life Group CSR report 2008

Improving the Skills of Service Personnel

To develop in-house sales representatives capable of providing
consulting services from the customer’s perspective, Taiyo Life
conducts training aimed at improving product, tax, and insurance sales knowledge, and provides support for the acquisitionof generally recognized national certifications as a way to promote the enhancement of specialized knowledge.
Taiyo Life actively supports in-house sales representatives
working to attain one of the three Life Consultant professional
designations awarded to those who pass a common industry
examination. Additionally, Taiyo Life offers AFP classes aimed
at improving financial planning capabilities and supports
employee efforts to become a Certified Skilled Worker ofFinancial Planning or an Affiliated Financial Planner (AFP).

Qualification Examination System
Year 1

Year 2

Year 3and onwards

Specialized
courseApplication courseLife insurance
university course(Life consultant)(Senior life consultant)(Total life consultant)

Self development
Qualification exam
for variableinsurance sales• AFP training course• Certified Skilled Worker

Qualification exam for
non-life insurance productsof Financial Planning

Training
after registration

Examination ofgeneral courses

Training
before registration

Daido Life has established a training system tightly linking theheadquarters, branches, and staff responsible for overseeing
agents and uses it to provide high quality support to agents.
It is also providing practical training using resources like proprietary PC-based learning materials and explanation sheets. This
training is based on a training program intended to improveunderstanding and expertise related to the implementation ofstrict compliance practices and to the insurance business.

Compliance training
Business know-how training
Practical sales training

Group training, individual agent
training, web training,
and accompaniment support

Training program for staff responsible
for overseeing agents ...... T&D Financial Life
T&D Financial Life’s staff responsible for overseeing agents(wholesalers) undergo training intended to provide them with abroad range of expertise and know-how that will permit them to
win the trust of financial institution personnel who are partners
in selling products, and ultimately satisfy customers.
Training is conducted to help wholesalers not only acquire thebasic knowledge required to handle financial products, but also
master the technical details of products as necessary, according
to the levels of participants.
Efforts to augment practical skills include training for improving communication skills, classes by asset management firms,
and opportunities to interact with wholesalers from other units.
Furthermore, input from wholesalers is used to enhance training
in a bid to develop wholesalers who satisfy customers andagents.

24
For Greater Customer Satisfaction

Support for obtaining professional certifications .................................... Taiyo Life

Soliciting agent training program ...... Daido Life

Briefing session oncommissioned business

The Group’s three life insurance companies place a high priority on improving the skills of service personnel who are criticalfor increasing customer satisfaction.
Focusing on the acquisition of fundamental and specialized life
insurance knowledge, and compliance, as basics, all three companies are actively undertaking training to help their service
personnel respond to customers’ varied needs.
To provide customers with optimal service under their three different business models, each life insurance company has personnel such as in-house sales representatives, customer service
staff, agents, and wholesalers who provide support to agents.
Also of critical importance are tailored training approaches.
And all three companies not only adopt systems and programs
focused on the needs of particular kinds of personnel, but also
work to ensure their training programs are the best that they canbe.

Offer of Better Products and Services

For Greater Customer Satisfaction

Other Services
The Group’s three life insurance companies are striving to
improve convenience for customers by allowing them to request
various procedures not only face-to-face at their nationwide
branches and head offices, but also via call centers and theInternet.
Various services responding to customer desires are also rendered through these avenues.

T&D Club Off“T&D Club Off” provides customers of the Group’s three life
insurance companies with various services that are useful for
promoting good health and making the most of time off.

Examples of T&D Club Off Services

For Greater Customer Satisfaction

25• Domestic lodging • Online reservations for overseas hotels• Business hotel reservation services • Golf reservation services• Recreation facilities• Various toll-free telephone services (consultations on legal, tax, financial, pension, childcare, dietary, and other matters)• Support services for daily life (extensive menu of services for daily
life)

Support services for SME business
management ............................... Daido Life
Daido Life provides a range of corporate customer services
intended to provide business management support and promote
good health.

Examples of Corporate Customer Services• Delivery of business strategy, industrial sector, and other reports• Provision of templates for company internal rules• Free employment rule assessments• Information on public support• Health consultation and second-opinion service

Provision of information over the Internet
The Group’s three life insurance companies are working to provide a rich selection of information over the Internet.
T&D Financial Life, for example, has posted a list of commonly
asked questions and responses to them on its website.

Click the “Frequently asked questions” buttonon the top page of T&D Financial Life’s website

a For details on services, please refer to the website of the Group’s three life
insurance companies.

New service for children’s insurance“Waku Waku Mail”....................... Taiyo LifeIn April 2007, Taiyo Life introduced a new children’s insurance
product called “Waku Waku Pokke”. This product was createdby female employees on New Product Development Teamworking in cooperation with mothers who have children.
One of the new services offered with this product permits policyholders to write happy
messages that are then heldby Taiyo Life and delivered
to the policyholders as a
“ Waku Waku Mail ” when
the product becomes due.
“Waku Waku Pokke” pamphlet

Enter search terms in the FAQ search window

A list of search results appears,
allowing the user to view detailed information

T&D Life Group CSR report 2008

Reflecting Customers’ Voices in
Operations

Customer voices gained through daily
business activities
All three life insurance companies are doing their best to
increase customer satisfaction by creating systems for gathering
feedback from as many customers as possible and reflecting itin their operations.
Through in-house sales representatives, agents, call centers, theInternet, and other points of contact with customers, input isreceived from customers throughout the country on a daily
basis. Customer feedback is centrally managed in a databaseand provided to relevant units, where it is used to improve work
procedures and quality.

Customer surveys
The Group’s three life insurance companies conduct surveys togather customer feedback.
T&D Financial Life, for example, encloses customer satisfaction surveys when sending out documents on insurance claims
and discloses results of those surveys on its website.
Example of T&D Financial Life Survey Results
Q1. What did you think about
the form completed on this occasion?
Difficult to understand

5

%

41%
Neither difficult nor
easy to understand54%
Easy to understand

Survey period: October 1, 2007 to March 31, 2008

Policyholder meetings .............. Taiyo Life
Taiyo Life holds “Taiyo Life Fureai Club” (policyholder meetings) to help policyholders better understand Taiyo Life and life
insurance and gather information on customer opinions anddesires.
In fiscal 2007, these meetings were held in 25 locations
throughout the country, by 74 branches, and were attended by
367 people. Taiyo Life
used these meetings primarily to explain thedetails of examinations it
performed regarding theunderpayment of claims
and benefits, and the status of improvement
measures.
“Taiyo Life Fureai Club ”

Marketing surveys by product development personnel
Product development personnel actively pursue marketing activities aimed at identifying customer needs.
With its mainly household market, and women accounting for
approximately 70% of its customers, Taiyo Life launched its
New Product Development Team in February 2006. The company is using this group, which consists of only female employees selected through an open recruitment process, to pursue
product development that emphasizes a woman’s perspective
and customer voices.
Daido Life, which serves SMEs, conduct surveys of in-housesales representatives who are in daily contact with company
managers and tax accountants, to gather information on whatcustomers need and desire in products.
Voice

Member of Product Development Team, Mari Mogi
New Product Development Team, Product Development
Division, Product Department, Taiyo Life

When I was working at a branch, thefeeling that I had satisfied a customer
was what pleased me most in mywork. Now that I have been selected
through an open recruitment process
to be a member of the New ProductDevelopment Team, my objective is
to put smiles on the faces of evenmore customers by listening to as
many people throughout the country as possible, and developing products that go farther in satisfying their needs.

26
Reflecting Customers’ Voices in Operations

System for Gathering Feedback as
Widely as Possible

Offer of Better Products and Services

Reflecting Customers’ Voices in Operations

Efforts by Three Life Insurance Companies to Respond to Customers’ Voices
Taiyo life ................................................................................................................................................. Acquisition of ISO 10002
certification
In fiscal 2007, Taiyo Life implemented a companywide business process improvement initiative
under the theme of adopting improvements based on customer feedback. This initiative aims to
improve customer satisfaction through business process improvements based on the customer’s
perspective.
As part of its effort to ensure the reliable implementation of its customer service systems and promote ongoing improvements, Taiyo Life gained the ISO 10002 “Quality management–Customer
satisfaction–Guidelines for complaints handling in organizations” certification in March 2008.

Taiyo Life gains ISO 10002 certification

Daido Life ....................................................................................................................................... Companywide initiatives led
by a dedicated CS unit

Reflecting Customers’ Voices in Operations

27

Daido Life has established its CS Promotion Department, a unit devoted solely to promoting initiatives aimed at increasing customer satisfaction, and is centrally aggregating customer feedback
from throughout the country, sorting and analyzing problems, and identifying areas requiring
improvement.
Once such areas are identified, head office units develop concrete improvement measures. After consideration by the Executive Committee, approved measures are implemented, with continuous monitoring and verification by the CS Promotion Department. Improvement measures are shared with all
employees in “CS Sessions” (Note) and implemented in the course of regular business activities.
Additionally, customer feedback and improvement measures are distributed throughout the company on a monthly basis in the Complaint and Consultation Report and information is shared over abulletin board established on the company’s LAN, in an effort to improve customer convenienceand prevent future complaints.
(Note) Branch managers and general managers at the head office lead these meetings, which are attended by all unit members
and used to discuss the details of, and implement improvement measures.

CS improvement promotion 2008
“Do it right!” poster

Rapid response in partnership with financial
T&D Financial Life ............................................................................ institutions and other agents
T&D Financial Life takes seriously each and every customer
comment received through its Customer Service Center, andhas put together a system for reflecting customer complaints,
opinions, and desires in its management and improving bothcustomer service and business process quality through operational improvements. Furthermore, it also works with financial institutions and other agents (sales channels) to rapidly
respond whenever issues or problems emerge.

System for Reflecting Customers’ Voices in Operations
CustomerComplaint & Consultation
Inquiries

Response

Customer Service Center
Report&Instructions

Customer Consultation Division
Consultation&
Inquiries

Corporate
Complianceattorney Inquiries Department
Financial Institution and other agents

ReportConfirmation ofcomplaint details

Complaint Recurrence

Cooperation in
Prevention Committee
resolving complaints
Improvement
instructions

Related units

T&D Life Group CSR report 2008

Examples of Improvements Based on Customers’ Voices
Customers’ Voices

Principal Improvements
Began handling specified agent claim rider

What should be done when thebeneficiary cannot submit a request
for benefits by himself/herself?

Taiyo
Life

Only one benefit claim form wasprovided even though I havemultiple policies.

Specified agent claim rider was introduced to make it possible for a
pre-specified beneficiary representative to apply for benefits when thebeneficiary, who is also the insured, is incapable of applying for
benefits by himself or herself.

Revised the user interface
The computer screen used by reception employees was changed todetermine whether other applicable policies exist when a customer
applies for benefits.

Implemented customer service attitude training

I didn’t know my policy was forterm insurance with no maturity
benefits.

Daido
Life

I received a postcard titled, “FundTransfer Notification”, but I have noidea why it came and what funds
were transferred.
I would like for hospitalization
benefit claim forms to include thenumber of hospitalization days forwhich benefits have already beenrequested.

Customer service attitude training is being conducted for general
office employees who are often in direct contact with customers. The
purpose of this training is to help these employees adopt the service
attitude and matters necessary for the customer service
improvements being demanded of insurance companies.

Adopted rule requiring that the “Product Summary Sheet(agreement summary)” be read to customers
A rule requiring that policy explanations include reading to thecustomer particularly important sections of “Product Summary
Sheets (agreement summaries)” to help ensure the customer fully
understands coverage details was adopted.

Information on premium refunds revisedfor easier understanding
Explanations of premium refunds following policy cancellations wererevised to more clearly explain matters like fund transfer amounts
associated with each policy and reasons for refunding premiums.

Benefit claim forms revised to include
past benefit payment histories
Detailed benefit payment histories are being included in benefit claim
forms, so that customers can apply for all available benefits. This wasdone to allow customers to confirm their benefit payment histories.

Simple documentation explanations prepared
The details (terminology) of the“Policy Notification” are difficult tounderstand.

T&D
FinancialLife

I received an “ID Number andPassword Notification” for using
Internet services, but the numeral“1” and the lowercase “l” in theinitial password look the same andare hard to distinguish.

Information including an explanation of how to read a “Policy
Notification”, titled “Regarding the Details in the Notice of Policy
Terms & Conditions”, “Frequently Asked Questions”, and an
explanation of situations eligible for claim and benefit payments
titled, “Regarding Payment of Claims and Benefits” were prepared,
and are periodically being sent to, customers who purchased policies
through former sales branches. All of these explanations are included
with “Policy Notifications”.

Usage of numbers and text characters revised toprevent customer misunderstandings
The numeral “1” and the letter “l”, and the numeral “0” and the letter“O”, were excluded from use in temporary login IDs and passwords.
Similarly, the letters “j” and “i” were excluded from use in initial
settings to help avoid customer misunderstandings.

Presentation of increased basic insurance amounts on
re-issued insurance policy certificates
After increasing the basic insurance
amount for my variable annuity, I
received a notification confirmingthat change, but I want to see therevised amount displayed on myinsurance policy certificate.

When the basic insurance amount for a variable annuity is increased,
the completion of the related procedures is communicated to thecustomer via the “Notification of Policy Revision (basic insurance
amount increase)”, which is sent in lieu of a new insurance policy
certificate showing the revised insurance amount.
If the customer wants to have a new insurance policy certificate
showing the increased insurance amount, one will be issued once thecustomer returns the original insurance policy certificate to thecompany.

28
Reflecting Customers’ Voices in Operations

I was unsatisfied with the response
I received when I telephoned thebranch office, and would like
improvements to be made.

Strict Compliance

Strict Compliance

Basic Ideas of Compliance
The T&D Life Group, as one of its management visions, has committed itself to “broadly fulfilling the social responsibilities withhigh ethical standards and strict compliance practices”, thereby
positioning legal compliance as a key management priority.
To promote CSR initiatives, compliance is an indispensable key
factor. Based on this idea, the Group is committed to ensuringthat all employees and directors thoroughly understand the T&D
Life Group Compliance Code of Conduct, etc. in order to promote compliance.

The T&D Life Group
Compliance Code of Conduct
This Compliance Code of Conduct serves as a basic policy guideline for all employees and directors of the T&D
Life Group to follow in order to ensure that their businessactivities are conducted in a fair and adequate manner inline with laws, regulations, and rules. The code sets specific principles and standards to be observed by employees and directors to support them in complying with laws
and rules in their daily business operations.
Anyone not following the Compliance Code of Conductof the T&D Life Group may be disciplined for noncompliance with laws or in-house rules.

Group Compliance Promotion System

Group Compliance Promotion System

Board ofDirectors

Corporate Auditors

T&D Asset Management

Daido LifePet and Family Small-amount
Short-term Insurance

T&D Financial Life

Other Group companies

Regarding the products and services that we provide tocustomers, we will not conduct any illegal acts in competing with other companies, including colluding on
bidding.

3. Proper Information Disclosure
We will properly disclose and explain information on
our products and services as well as information about
the management of the Company and Group companies.

4. Proper Information Management
We will properly handle customer information that wehave obtained in the course of our business, including
their personal information, in accordance with laws andregulations. We will properly manage information
about the Company and Group companies that has notbeen disclosed to the public. We will not allow thisinformation to be leaked to third parties after leaving
the Company or Group companies.

5. Prohibition of Insider Trading
We will not use important confidential information that
we have obtained in the course of our business for the
purpose of making corporate or private investments orfor other personal economic activities.

We will not give or receive gifts and will neither makenor accept offers of entertainment beyond the extent ofsocial norms.

8. Distinction between Private and Public Matters

Risk Control Department

Taiyo Life

2. Maintenance and Promotion of Fair and Free Competition

7. Limitations on Business Entertainment

Group Compliance Committee

Deliberation&
reporting

We will comply with social rules, including such laws as
the Insurance Business Law as well as our own inhouse rules. Being aware of the background of thesenorms, we will conduct ourselves in an honest manner.

We will reject and stringently respond to any antisocial
powers and organizations that threaten the order andsafety of a civil society.

Board of Corporate Auditors

Guidance&
counseling

1. Strict Compliance with Laws, Regulations, and Rules

6. Response to Antisocial Powers

Internal auditing

Strict Compliance

29

T&D Holdings has developed its compliance promotion system
in accordance with the Basic Policies for T&D Life Group
Compliance System Development.
The Group Compliance Committee has been established as anorgan for monitoring and improving compliance within theGroup. The committee, which is chaired by the President andcomprised of all directors and executive officers with operational responsibilities, works to ensure strict compliance by discussing compliance matters, reporting its conclusions andexpressing its opinions as necessary to the Board of Directors.
In addition, the Risk Control Department, which has overall
responsibility for promoting compliance, performs regular monitoring in cooperation with the compliance units of the Group’s
three life insurance companies, and provides these companies
with guidance and advice.
The three life insurance companies and other group companies
also have compliance promotion systems consisting of compliance committees and units charged with overall responsibility
for compliance.

In conducting business, we will draw a clear line
between our private and public lives.

9. Respect for Human Rights
We will respect human rights and do our utmost to prevent discrimination and harassment.

Responsibility and Duty of Management
The T&D Life Group management will act while recognizing the observance of the code of conduct as their
responsibility and duty and strive to disseminate thecode of conduct among Group companies and play aleading role in promoting the observance of the code.

T&D Life Group CSR report 2008

Compliance Program

Development of Solicitation Policies

Each T&D Life Group member company takes compliancemeasures that are based on the Group’s basic compliance policies and are appropriate for its size and character in striving toensure high compliance awareness. For example, T&D
Holdings and the Group’s three life insurance companies havecreated Compliance Programs as concrete, implementable plans
aimed at having all employees and directors practice legal compliance and are performing compliance training and taking othersteps to reinforce compliance in business activities.

The Group’s three life insurance companies have established
Solicitation Policies which form the ground rules for soliciting
activities complying with legal requirements. Under the policies, the companies constantly work to develop and propose
products that appropriately respond to customer intentions andcircumstances, and make efforts to ensure that customers purchase policies only after thorough understanding of the coverage to be applied.
Solicitation Policies; Taiyo Life
Below are Taiyo Life’s basic policies regarding solicitation oflife insurance and sales of other financial products to customers. Services most appropriate for customers are offeredthrough consulting style sales, and Taiyo Life personnel constantly work in ways that are fair and appropriate to designand solicit products in consideration of factors like customers’ wishes, circumstances, and privacy.

Compliance Manual
The T&D Life Group has prepared separate compliance manuals for in-house sales representatives, office workers, agents,
etc. Compliance manuals are used as guidebooks for daily operations and as teaching materials in compliance training.

Compliance Card
To help ensure strict compliance, employees of the Group’s
three life insurance companies always carry with them cards onwhich key compliance points are printed.

Whistleblower System
The T&D Life Group’s threelife insurance companies andother Group members havelong been operating their own
whistleblower systems. In
April 2005, however, theT&D Life Group Helpline wasestablished for use by all
Group employees and directors.
The T&D Life Group Helpline poster

Implementation of the whistleblower system
Compliance card

As a rule, employees and directors who report information
through the T&D Life Group Helpline do not suffer negative
consequences for having done so. To ensure the effectiveness ofthe system, the Group has made it possible to report information
to a contracted third-party company by phone, via a website,and other channels, and to do so anonymously. The Group willcontinue its efforts to promote compliance through this whistleblower system.

30
Strict Compliance

Compliance training (T&D Holdings)• Laws and regulations will be complied with in solicitation activities.
• Efforts will be made to pursue appropriate solicitation
activities, in light of the customer’s circumstances.
• Factors like time and place will be fully considered.
• Efforts will be made to appropriately explain importantmatters.
• Efforts will be made to provide personnel with comprehensive education and training.
• Customer information will be handled with the strictcare.
• Systems for the pursuit of appropriate solicitation
activities will be built.

Respect for Human Rights

Initiatives to Improve Employee
Motivation
Employee Development Direction
The T&D Life Group has formulated education and training
plans under the basic policy of “developing human resources
with boundless creativity and a solid ability to get things done”,
which is included in management visions, and is working todevelop and improve employee skills.

Education and Training

31

Programs Responding to Employee Challenges

Initiatives to Improve Employee Motivation

The Group’s three life insurance companies provide educationand training primarily through on-the-job training, group training, and self-development support.
The Group supports the personal career improvement efforts ofindividual employees by, for example, actively supporting
efforts to gain professional qualifications and offering a broadarray of courses through correspondence, e-learning, and othereducation and training channels.

Internal recruiting system
The Group’s three life insurance companies provide opportunities for employees to actively develop their own skills and supports employee efforts to develop career plans. One example istheir internal recruiting system that allows employees to apply
for positions they would like to take on as new professional
challenges as well as for MBA degree courses, etc.

Initiatives to support women’s career
Having the objective of being a place where employees canwork with great enthusiasm and motivation, the Group actively
hires and promotes employees without regard to gender.
Specifically, the Group is recruiting outstanding female employees for management positions, encouraging women to change tocareer-track status, has created the New Product Development
Team through open recruiting targeting only women to develop
products from women’s perspective, and is taking other such
steps to take advantage of the skills of female employees and promote the development of a workplace where women can thrive.

Inauguration of Successful
Women’s Seminars ................... Taiyo Life
Compared to men, women can face more career limitations due
to life stages, so Taiyo Life came to believe that a different perspective was required for monitoring the career development of
women promoted to managerial positions.
As a result, it has inaugurated “Successful Women’s Seminars” targeted primarily at female management employees. These seminars
provide training to improve mainly communication and leadership,
but also other interpersonal
skills, and give participants
opportunities to learn fromfemale managers working
in other types of business.
Feedback from participants
has been very positive.
Successful Women’s Seminar

Voice

Beneficiary of the internal recruiting system, Madoka Kajita

Female manager, Yuko Ariyama

Accountant Agency Management Division,
Accountant Agency Management Department Daido Life

Education and Training Division Manger,
Education and Training Department T&D Financial Life

Working as an area career-track employee at a branch, I developed a desire tounderstand the workings of the entire
company, and applied to the Head OfficeLong-Term Transfer System. Now, I’mworking at the head office preparing
sales support information and planningand developing sales promotion goods.
What is good about working at the head
office is that it has widened my perspective on my work. I havedeveloped a very good understanding of how branch activities
are underpinned by head office support systems. In addition, by
analyzing phone calls received from various branches, I havebecome familiar with the different problems faced by individual
branches and developed an understanding of the work performed by other units. I aim to use what I have experienced in
my future career development.

Wanting to be involved in training andeducation, I used the internal recruiting system to transfer to my current
unit. Now I’m using know-how I
acquired during my time as a wholesaler to train less-experienced employees. Being the only female Division
Manager, I feel honored, on the one
hand, but, lacking a “guidebook”, Ialso feel some pressure to do my best to be a good example
for those who follow.
My advice to women aiming to become managers in the
future is, first of all, that you need to make 50% more effort
than others do. Furthermore, no matter where you work,changing the status quo requires that you personally takeinitiative. I think doing that results in greater satisfaction
and makes one stronger in the end.

T&D Life Group CSR report 2008

Work/Life Balance
The Group’s three life insurance companies endeavor to create
better workplaces that accommodate people with disabilities
and had a combined employment rate of people with disabilities
1.97%, equating to 298 people, as of the end of March 2008.

Reemployment
The Group’s three life insurance companies have introduced
reemployment system for retirees. For people who meet certain
requirements, renewal of employment agreements under thesystem is possible through the age of sixty-five. 42 of the 80
Group employees who retired in fiscal 2007 have been rehired
under the system. In addition, life planning seminars have been
held to encourage employees who have recently turned fifty toconsider options for how to work and live in the future.

Workplace Environment Data (Group’s three insurance companies)
Employment rate ofpeople with disabilities (Note 1)
No. of employees taking
maternity leave
No. of employees taking
childcare leave
Male
FemaleNo. of employees taking
nursing care leave
Male
FemaleAvg. No. of paid vacation days
taken (Note 2)

March 31, 2007

March 31, 2008

1.85%

1.97%

137

112

132

153

18
114

40
113

6

8

1
5

0
8

10.2 days

10.2 days(Note 1) The statutory employment rate of people with disabilities is 1.80%.
(Note 2) The figure for the average number of paid vacation days taken applies to
office workers.

Employee Statistics (Group’s three insurance companies)

Employees on staff
March 31,
March 31,2007
2008
Total No. of
employees
MaleFemaleIn-House sales
representatives
Male
FemaleOffice workers
Male( ) Managers
Female( ) Managers
Career-track employees &Area career-track employees
Regional career-track
employees
Clerical employees

Customer service staff(Unit: people)

People hired

FY 2006 FY 2007

20,147
4,587
15,56012,842938
11,904
6,267

19,484
4,527
14,957
11,926741
11,185
6,624

4,253
394
3,859
3,739
171
3,568
472

3,830
335
3,495
3,101
66
3,035
692

3,649
(1,896)

3,786(1,964)

223

269

2,618
(111)
3,817
663
1,787
1,038

2,838
(131)
4,461

249

423

244
88
140
42

380

2,163
934

312
37

(Note) Since Daido Life has introduced new position classification standards inaccordance with the personnel system reform effective on January 1, 2008,a regional career-track employee in charge of sales is classified as an area
career-track employee, and a regional career-track employee in charge ofclerical and general works to a clerical employee.

The T&D Life Group supports employee efforts to achieve awork/life balance. Specific examples include the Limit 21
System which turns off all lights at the head office building at
21:00 to help prevent excessive physical and mental job-related
stress, measures to promote the taking of paid vacation days andthe introduction of a childcare support system, etc. The Group isalso encouraging male employees to take childcare leave and,throughout the Group, 40 employees did so during fiscal 2007.
In April 2007, the Group’s three life insurance companies were officially recognized by the Chief of the Tokyo Labour Bureau for their active
support of the development of the next generation and were each awarded certification as a “company in compliancewith standards under the Law for Measures to
Support the Development of the Next
Generation”. T&D Information Systems also
awarded this certification as the first information service company with 300 employees orless in Saitama Prefecture in April 2008.
Symbol indicating compliance with standards under
the Law for Measures to Support the Development of
the Next Generation called “Kurumin”

Voice

Beneficiary of the childcare support system, Ayako Osawa
No.2 Business Department, T&D Information Systems

When I gave birth for the first time, I wanted to devote
myself to taking care of my baby, so I took about eightmonths of childcare leave beginning in July 1997. I could
have taken a year off, but I decided to return to work at
the beginning of the company’s fiscal year, which begins
in April. When I took childcare leave, there were very
few other people doing so, but that didn’t make it difficult and the company tookcare of nearly all the procedures for me. In the beginning, I worried about whether it
was really okay to take off as much time as I was planning to, but, perhaps becauseof a feeling of mutual understanding in a workplace with many women, ensuringthat others would be able to cover for me while I was gone, and returning to work,
both went very smoothly. In the future, it would be good if the system can be madeeasier for men to use and for more fathers to take childcare leave.
Colleague of an employee who used the childcare support system, Yasue Matsui
Professional, Group Planning Department, T&D Information Systems

When Ms. Osawa took childcare leave, I was working
with her in a system development unit. System development work is clearly divided among multiple employees, so the absence of even one person creates a disruption. Sharing information is always important, but in thecase of childcare leave, the period of absence is long, so
even closer communication is called for. Partly due to the fact that our company
employs many women, and the resulting high degree of mutual understanding
regarding this point, childcare leave is easy to take here. In Ms. Osawa’s case, as
well, cooperation from coworkers and information sharing made it possible for her
to concentrate on childcare. I hope that in the future work can be made more transparent, and manuals prepared, to make the hand off of work from one employee toanother smoother, and promote greater use of the childcare leave system.

32
Initiatives to Improve Employee Motivation

Employment of people with disabilities

Respect for Human Rights

Initiatives to Improve Employee Motivation

Reflecting the Opinions of Employees’ Unions

Health Care for Employees

The Group’s three life insurance companies each have their own
independent employees’ unions and all of them work to maintainsound employee-management relations based on trust. The threelife insurance companies actively discuss with their employees’
unions a wide range of topics covering everything from businessissues and policies, to salaries, working hours, holidays, personnel systems, benefits, and a whole host of other topics.
The three life insurance companies believe that true employeemanagement give and take realized through honest participationin discussions of both sides will result in greater employee motivation and company competitiveness.

The Group’s three life insurance companies each has its own
independent health insurance society, which works to prevent
lifestyle diseases, promote good health, and engage in otheractivities to help members manage their health.
Principal activities include coverage of costs to treat diseases andinjuries suffered by beneficiaries or union members and theirdependents; lump-sum payment on childbirth, death, and otherbenefits; PR to increase awareness of how to use health insurance;
regular issuance of an in-house magazine, payment of subsidies
for annual physical examinations such as complete medical checkups; promotion of cancer examinations; sponsorship of personal
health consultations with professional health advisors; sponsorshipof mental health consultations with counseling firms; and the holding of health seminars. Those societies have also been implementing the specific medical checkups and health care guidance inorder to prevent lifestyle diseases, starting from fiscal 2008.

Voice

From the employees’ union, Masanao Hiramoto
Chief Secretary, Administrative Employees Union, Daido Life

Initiatives to Improve Employee Motivation

33

The role of the union has changed
over the years, but communicating
member desires and opinions to thecompany, searching for better ways
to do things through employee-management discussions, and otheraspects of the union’s position as anorganization, and of employee
needs, remain the same.
For fiscal 2007, the union’s principal achievement was tohold vigorous discussions with the company regarding concrete measures to promote short- and medium-to-long term
career development within human resource system revisions
affecting mainly female sales representatives and administrative workers. As a result, we were able to take the firststep toward creating work environments that allow womeneven greater opportunities to succeed. Looking ahead, I wantto make progress toward the creation of work environmentsthat consider needs to work/life balance. Such environments
would result in greater numbers of self-directed employees
capable of thinking and acting on their own, and expand thepotential of individuals. Ultimately, I believe it will lead togreater worker productivity for the company as a whole.

Increasing understanding of
mental health care .................... Taiyo Life
Taiyo Life is taking steps to help ensure that proper understandingof mental health care is being promoted and employees at individual workplaces are receiving proper mental healthcare attention.
In fiscal 2007, training by external instructors was conducted for
managers, and head office managers were urged to take theMental Health Management Test (Sponsored by the Osaka
Chamber of Commerce and Industry). 224 managers passed the“Type II Line Care Course”. In fiscal 2008, management employees at branches will also be urged to take the test.

Employee Awareness Survey
The Group’s three life insurance companies perform employee
awareness surveys addressing topics like job satisfaction, working
conditions, and the personnel evaluation system, and have implemented various initiatives based on results.
Employee awareness surveys provide important information for
identifying organizational and human resource management
issues. Among other things, employee opinions are used for management direction to gauge the extent to which the present humanresources system has been accepted, assess the management of
this system, and evaluate employee satisfaction, which has a significant impact on customer satisfaction.

Training text and test information

T&D Life Group CSR report 2008

Initiatives as a Life Insurer Serving
the Public Interest
The Fairness of Life Insurance

Human Rights Education in the Workplace

Life insurance is a mutual assistance system in which costs related to insured deaths, hospitalizations, nursing care, etc. are covered by premiums calculated using mortality and accident rates
determined based on a law of large numbers. Life insurancecompanies do not allow people to purchase policies regardless of
their circumstances; to maintain the fairness of the life insurance
system, people whose expected mortality rates or insurance accident rates exceed certain levels are either rejected or permitted to
become insureds only under certain additional conditions such as
application of special premiums, etc.
The T&D Life Group respects the human rights of customers
and develops and sells a wide variety of insurance products
meeting a wide range of customer needs, health conditions, gender, enrollment ages, etc.

The T&D Life Group promotes understanding of human rights
by educating employees on matters like sexual harassment, anddiscrimination against the people with disabilities and certain
groups of Japanese originating from discriminated communities
called “dowa” issues. Group companies provide employees anddirectors with at least two opportunities to further their understanding of human rights issues every
year.

Taiyo Life poster“Sexual Harassment andPowerHarassment Prevention”

Examples of Insurance Products··

Daido Life
Term life insurance for people with diabetes or highblood pressure
Special discount rider for especially healthy people(for smokers and non-smokers)··

Protection of Personal Information
The Group’s three life insurance companies have formulated
their Personal Information Protection Declarations (Privacy
Policy) and disclosed them through their website and otherchannels. Additionally, T&D Information Systems, as the T&D
Life Group’s information system support company, properly
uses and strictly protects various kinds of data, including personal information.
T&D Information Systems acquired
the Privacy Mark certification
awarded to companies that properly
protect personal information in May
2005, and won the ISO27001 information security management system
certification in March 2007.
Privacy MarkGroup CSR Seminar
T&D Holdings conducts Group CSR Seminars to promote better
CSR understanding among the executives and general managersof Group companies, which pursue businesses that are verymuch in the public interest. These seminars are also intended topromote CSR-oriented management. In fiscal 2007, Professor
Eiko Shinotsuka of the Ochanomizu University, Graduate
School of Humanities and Sciences, and Faculty of Letters andEducation (at the time of the seminar) was invited to speak on
the topic of “Corporate Value and Work-Life Balance”.
The barrage of questions asked during a Q&A session following
the Professor Shinotsuka’s speech indicated that managers werestrongly interested in the topic.

CSR Seminar

34
Initiatives as a Life Insurer Serving the Public Interest

Taiyo LifeFor those who have previously been hospitalized or had surgery, or are currently receiving outpatient care.
“Yasashii Hoken”, a non-selective-type medical insurance“Kisei Kanwa”, which offers coverage options with a simple disclosure of health status

Communication

Pursuing Proactive
Communication Activities

Pursuing Proactive Communication Activities

35

Proactive Disclosure

IR Activities

The T&D Life Group pursues proactive communication activities and works to ensure that its disclosure activities result in
the provision of straightforward information to customers,
shareholders, other investors, and all other stakeholders.
Each Group member engages in newspaper, magazine, television, radio, and other PR activities to enhance its company
image and promote products.
Furthermore, T&D Holdings and the three life insurance companies have formulated Disclosure Rules (Note) and work to achieve
information disclosure that, through its proactiveness, results intransparent management and is timely, fair, accurate, and consistent across the Group in the event of emergency. The ultimate
aim here is to maintain or enhance the society’s trust in Group.
Each Group member issues disclosure materials on its management
policies, business performance, and other matters, posts productand service information, company news and other information on
its website, and responds to individual requests for information.
T&D Holdings informs its shareholders, approx. 313,000 as ofthe end of March, 2008, of the status of Group operations andother matters twice a year, June and December through shareholder news bulletins. The three life insurance companies
deliver to each policyholder a Policy Information Notifications
annually to help ensure that they confirm the status of theircoverage and other policy details.

T&D Holdings engages in proactive IR activities based on principles of timeliness, fairness, and accuracy, and works to provide continuous, straightforward information on the Group’s
management and finances. More specifically, it performs
results briefings for domestic and overseas investors, holds
results teleconferences, visits key institutional investors, andactively engages in discussions with securities analysts. It also
regularly provides management with valuable
information received
from investors throughIR activities as feedback.

(Note) T&D Holdings has prepared and disclosed its Basic Disclosure Stance,
which is rooted in its Disclosure Rules.

Results briefing for the fiscal year ended
March 2008

IR activities for individual investors

Left) Booth at IR fair

Nikkei Inc. sponsored IR fairRight) Company information session

T&D Holdings devotes significant time and effort to the interests of individual investors as well by, for example, participating in IR fairs and holding company information sessions at thebranch offices of securities companies. T&D Holdings has
improved its IR website pages with an easier-to-use, more convenient design, and simple, straightforward wording.
The IR website was selected by Daiwa Investor Relations Co.,
Ltd. in May 2008 as one of the 402 best companies for Internet
IR sites. (Note)(Note) Daiwa Investor Relations Co., Ltd. reviewed the IR sites of the 1,879
primary listed companies between March 10 and April 14, 2008 andannounced the 402 companies it believes have the best Internet IR sites.

Excerpts from the published IR Policy of T&D Holdings

From left) T&D Holdings disclosure material, Annual Report, and shareholder
news bulletin

1. Purpose of IR Activities
2. Individuals and Department Responsible for IR Activities
3. IR Information
4. Feedback to Management
5. Silent Period
6. Formulation of IR Activity Plans and Verification

T&D Life Group CSR report 2008

Communications with Stakeholders

Voice

Voice of an analyst, Mr. Mitsumasa Okamoto
Senior Analyst, Managing Director of Research Department
Merrill Lynch Japan Securities Co., Ltd.

Recent upheaval in global financial market environments has
made it necessary for financial
institutions not only in Japan, but
throughout the world to be able
to adjust to unstable environments. It is now more important
than in the past to disclose information to stakeholders, including
shareholders, customers, and employees, and that information must be timely.
The T&D Life Group has actively disclosed business dataand information on company activities since it went public,
and it has placed great importance on stakeholder dialogues
via its CSR report and other channels. Against the background of rapid-fire changes in business conditions, it is my
expectation that the T&D Life Group’s corporate value willcontinue to be discerned through dialogues with stakeholders and that its business will continue to expand.

Daido Life Business Operation
Report Meeting ......................... Daido Life

Daido Life Business Operation Report Meeting

At the Daido Life Business Operation Report Meeting held on
July 28, 2008, participants include 49 tax accountants and certified public accountants who are executives of the TKC National
Federation (Note), a registered Daido Life agent, in addition to 7
representatives of Daido Life, including its Representative
Director and President, Haruo Kuramochi.
In the meeting, the President gave a briefing on Daido Life’s
results and activities in “Reports from Daido Life” part.
Next, Dr. Koichiro Fujita, a professor emeritus at Tokyo
Medical and Dental University and a professor of University of
Human Arts and Sciences, gave the commemorative speech
titled, “Lifestyles That Boost Immunity—The Pitfalls of a Clean
Society”.
In the gathering following the commemorative speech, several
participants expressed their candid opinions about theCompany’s management.

(Note) The TKC National Federation was created to contribute to the realization ofjust taxation and the ongoing prosperity of taxation and accounting clients.
The TKC National Federation is Japan’s largest organization network ofprofessional accountants or tax accountants and certified public accountants.

36
Pursuing Proactive Communication Activities

The Group’s three life insurance companies strive to provide forface-to-face meetings with their stakeholders including policyholders and agents in order to maintain proactive communication.
Taiyo Life holds informal discussions with policyholders once a
year at its branches throughout the country. ( e page 26,“Policyholder meetings”)
T&D Financial Life focuses on maintaining close links with its
agents that serve as a contact point with customers, as well as
communicating directly to its customers by holding seminars forcustomers.
Daido Life builds partnerships with organizations of tax
accountants and certified public accountants in creating a structure for selling various benefit systems to the clients of themembers of these organizations. These organizations and theTA and CPA agents are key stakeholders of Daido Life.
Accordingly, Daido Life holds meetings with them those who
act as the agents and sponsors discussion groups where recent
developments at Daido Life can be reported and meeting participants can express their views on Daido Life’s operations.

Contributions to Regions and Societies

Activities as a Good Corporate
CitizenSocial Contribution Activities of the
T&D Life GroupAs a member of society, it is only natural that a company undertakes activities to contribute to society. Based on the management philosophy of aiming to be a corporate group that benefits
people and society by creating value under the motto “Try &Discover”, the T&D Life Group actively undertakes a broadarray of social contribution activities through Group companies
and foundations, the volunteer activities of employees and directors, and other means, too.

Blood donations
Every year, during times when the need for blood is especiallyacute, the T&D Life Group engages in blood donation activities
in cooperation with the Japanese Red Cross Blood Center. In fiscal 2007, 157 employees of the Group donated blood at the
Shiodome head office. Each of group companies also initiates its
own blood donation activities.

Nationwide Clean Campaign.................................................. Taiyo Life
Wanting to contribute to its local community as a member of thecommunity, Taiyo Life began in 1982 to clean the areas surrounding the Taiyo Life head office once a year. From 2004, it
named this activity as “Nationwide Clean Campaign” and its
branch offices throughout the country have started cleaning theareas surrounding their buildings. In fiscal 2007, totaling 7,728
employees and their family members of the head office, subsidiaries, affiliates, and branches joined this campaign.
Furthermore, the Shiodome head office implemented the“Minato-Shiba Area Clean-up Project”, in cooperation with theTokyo Minato Ward Office and the Minato Eco-conscious
Consortium, with the participation of other companies as well.

Activities as a Good Corporate Citizen

37

Shiodome head officeMorioka Branch

Donation of book bags to JOICFP................................................... Taiyo Life
Blood donation activities at the Shiodome head officeContributions of relief funds to aid
disaster victims
T&D Life Group companies contribute relief funds in response
to major disasters.
In May and June 2008, Taiyo Life, Daido Life, T&D Financial
Life, and the Friends of Taiyo Life Goodwill Circles and Daido
Life Employee’s Community Contribution Club contributed a
total of 5 million yen to support relief and recovery efforts in
China’s Sichuan Province, which suffered a major earthquake.
These donations were made via the Japanese Red Cross Society,
the Japan Committee for UNICEF, and Japan Platform. The
T&D Life Group would like to express its sincere condolences
for those who lost their lives in this disaster and its deepest sympathies to survivors. It is our earnest hope that recovery takes
place as quickly as possible.

Taiyo Life began participating, and actively encouraging companywide cooperation, in this initiative by the Japanese
Organization for International Cooperation in Family Planning(JOICFP) in fiscal 2006. 108 book bags were collected in thatyear, and 209 in fiscal 2007. These bags are sent to children in
Afghanistan, with the Friends of Taiyo Life Goodwill Circles
covering the 1,800-yen per bag shipping cost.

Children using donated book bags (Photo: JOICFP)

T&D Life Group CSR report 2008

Voluntary Initiatives by Employees
National Sports Gamesfor the Disabled ........................ Daido Life

Friends of Taiyo Life
Goodwill Circles ....................... Taiyo Life

Daido Life has been providing special support for this annual
event since it came into existence in 1992 as the NationalSports Games for the Mentally Handicapped (Note). The Seventh
National Sports Games for the Disabled (Akita Wakasugi
Games) were held in October 2007 in Akita Prefecture. The
purposes of this event were to help people with handicaps experience the joy of sports through competition, deepen understanding of disabilities, and promote greater participation insociety by people with handicaps.
Each year, Daido Life sets up, and many employees and executives volunteer to staff, the Daido Life Corner in the “Fureai
Plaza” as a place where athletes and others can come together.

Established in December 2005, the Friends of Taiyo Life
Goodwill Circles (Note) had 8,357 as of April 1, 2008. Goodwill
Circles support social contribution activities by executives andemployees, NPO/NGO activities, tree planting, forest development, and other activities, as well.
When Goodwill Circles make a donation, Taiyo Life makes
matching gifts of certain amounts. Moving forward, Taiyo Lifeand Goodwill Circles will continue to work together in supportof social contribution activities.
(Note) Friends of Taiyo Life Goodwill Circles are organizations with memberships
consisting of executives and employees of Taiyo Life and its affiliates. The
purpose of Goodwill Circles is to support social contribution activities andactivities that help to improve the environment. Every month, members
donate amounts equal to the last two digits of their take-home pay, or
amounts equal to multiples of 100 yen, up to a total of 1,000 yen.

Seventh National Sports Games for the Disabled (Akita Wakasugi Games)(Note) This event was consolidated as the National Sports Games for the
Disabled in October 2001.

Support for open lecturesat universities ........................... Daido Life
Daido Life began supporting open lectures at universities to mark the100th anniversary of its founding, in fiscal 2002. These lectures wereattended by approximately 5,000 people over the six years through fiscal 2007, and have become very popular. With the support of various
universities, these lectures have provided managers of SMEs with
opportunities to acquire management and business knowledge andskills. In fiscal 2007, open lectures were held at Fukushima University,
Chiba University, Hosei University, Meiji University, Yokohama
National University, Nanzan University, Kansai University, Kansei
Gakuin University, Hiroshima University, and Fukuoka University.
Each university determines the speaker andtopic for each open
lecture, which must
be relevant to the
SME management.
Speakers have also
been provided by
the TKC National
Open lecture
Federations.

The Daido Life Employee’s Community Contribution Club is avolunteer organization of executives and employees establishedin 1992 to promote and support various volunteer activities.
Annual donation drives and funds from events like charity
bazaars are contributed to facilities and organizations dedicatedto helping people with disabilities throughout Japan and areused to support relief efforts for disaster-stricken areas.
In 1994, a volunteer activity in which employees take a volunteer
day off to spend with physically disabled people was established.
The “One-Day Outing Volunteer Activity” serves to deepen
mutual understanding as volunteers spend the day interacting withand assisting people who have limited opportunities to go out.
In July 2008, a system that allows administrative employees todonate a portion of their monthly salaries was introduced.
Voice

Participant in volunteer activities, Toru Sasaki,
Policy Administration Division, Policy Administration Department Daido LifeI participated in the “One-Day Outing
Volunteer Activity”. Altogether, participants
included 33 physically handicapped people,
19 of whom were in wheelchairs, and 22 volunteers. With groups consisting of 3 sets of 6
people, we walked around places including
Cosmo Square in the Nanko area of Osaka.
Having had the experience of pushing my grandmother’s wheelchair, I felt confident in doing so on this occasion, but I was
reminded anew of things like wheels being stopped by even tinystones. Through this experience, in which I was sometimes led bya person with a handicap, I learned that how things appear candiffer drastically depending on your perspective. It’s important tothink of things from the other person’s viewpoint. I also realizedthat this is important for gaining the trust of customers.

38
Activities as a Good Corporate Citizen

Daido Life Employee’s Community
Contribution Club ..................... Daido Life

Contributions to Regions and Societies

Activities as a Good Corporate Citizen

Cooperation with Citizen’s
Organizations
Japan Down Syndrome Society................................................... Taiyo LifeJapan Philanthropic Association.................................................... Daido Life

Taiyo life is a supporter of the Japan Down Syndrome Society.
Since the Japan Down Syndrome Society National Convention in
Miyagi, Taiyo Life has provided support for covering convention
expenses through a matching gift system, made its head officebuilding (Shiodome, Shinagawa) available as a venue for the society’s seminars and other gatherings, and placed ads for “Waku
Waku Pokke” children’s insurance in the society’s monthly journal.
In fiscal 2007, Taiyo Life employees volunteered as instructors
for a bicycle-riding class the society held in Yamaga City,
Kumamoto Prefecture for people with down syndrome.

As a member of the Japan Philanthropic Association, Daido
Life is pursuing social contribution activities by working withthe association and othermember companies.
In fiscal 2008, Daido Life,
together with two othermember companies, is taking the lead in planningand organizing the associaMonthly seminartion’s monthly seminars.

Voice

Participant in volunteer activities (Japan Down Syndrome Society’s bicycle-riding class), Junko Kawanishi Osaka Branch, Taiyo Life

Activities as a Good Corporate Citizen

39

At first, we had participants use training wheels in order to have them experience the fun of riding a bicycle. Beginning on thesecond day, however, the training wheels were removed. As I sat on the back of the bicycle, to maintain balance, the child I was
helping pedaled with all-out enthusiasm and, in the end, learned to ride with me steadying the bike with only a hand on the luggage rack. On the final day, all of the students demonstrated their abilities one by one, riding their bicycles to the surprise anddelight of onlookers. It was very touching to see volunteers rejoice at the sight of students happily showing off their new skills.
All in all, it was four days of the joy of sharing joy.

Activities of Foundations
Establishment and Objectives

Taiyo Life Himawari Welfare Foundation
The Taiyo Life Himawari Welfare Foundation was established to mark the 90th anniversary of the founding of Taiyo Life.
The Foundation works to improve social
welfare in Japan by sponsoring projects toenhance the welfare for the elderly anddisabled.

Daido Life Welfare Foundation
The Daido Life Welfare Foundation wasestablished in 1974 to help promote healthmaintenance and social welfare in Japan.

Main Activities
Grants to project of volunteer groups and NPOs
working to benefit theelderly at home and thedisabled

Research
grantsGrants for research andsurveys regarding lifestylediseases and the healthand welfare of the elderly

Grant for purchasing a braille printer was provided to “Braille Circle
Moegi (Toride City, Ibaraki Prefecture;
Representative: Hiroyuki Soga)”, a
volunteer organization that helps thevisually impaired access informationfrom the city government, garbage
pickup schedules, timetable andother information necessary for daily
life by transcribing it into braille.

Regional health and welfare research subsidy
Company workers volunteer activity subsidy
Senior volunteer activity subsidy

It provides grants for researches as well as volunteer activities performed by people engaged inhealth or welfare activities at the grassroots level

The Daido Life Foundation was established in celebration of the Company’s
80th anniversary. The purpose of theFoundation is to promote mutual international understanding by holding or sponsoring cultural exchanges between Japanand other countries, and to contribute to
the internationalization of Japan.

Helping to provide a braille printer for use in keeping visually
impaired people informed

Consultation and training seminars for house Counseling regarding long-term care for thenursing (jointly hosted with the Osaka Center elderly and ill, and classes providing training on
in-home care techniquesof the Japanese Red Cross Society)

Health brochure publication

The Daido Life Foundation

Project grants example

Project
grantsPublication of the new “Environment and Health Series” ofhealth brochures providing clearly written articles aimed atpromoting health maintenance and improvement, and correctunderstanding of various illnesses and preventive measures

Award
programPresentation of Daido Life Foundation Awards for Area Studies to researchers
who have achieved significant results in research areas of particular importanceto their part of the world, and to people with significant accomplishments inadvancing mutual understanding at an international level

Translation andpublication
activities

Translation and publishing of modern Asian works into Japanese, and Japanese
literatures and biographies into various Asian languages, for the purpose ofdeepening mutual understanding between various Asian countries and Japan

Educational
supportactivities

Provision of scholarships, contribution ofJapanese-language writings to universities
with Japanese language courses, andprovision of books and school supplies
Photo: Left) Scholarship winners
Right) Donated books

Global Environmental Protection

T&D Life Group CSR report 2008

For the Future of the Global
Environment
Global Environmental Protection Initiatives
T&D Life Group Environmental Policy
The T&D Life Group is pursuing various activities aimed atachieving thorough employee and director awareness of the
T&D Life Group Environmental Policy, established in April
2006 to clearly present the T&D Life Group’s position on theenvironment, and lowering the Group’s environmental burden.
In addition, the Group has developed Green Purchasing
Standards and gives the highest priority to purchasing environmentally friendly products whenever possible.

Major initiatives of T&D Life Group (Fiscal 2007)
Cool Biz/Warm Biz cooperation
Cooperating with the government’s “Cool Biz” and“Warm Biz” initiatives, and as a measure to help stop
global warming, the T&D Life Group sets thermostats at
28°C from June through September, and 20°C from
November through March.

T&D Life Group Environmental Policy

1. Environmental Conservation Efforts through Business Activities
We will contribute to the protection of the global environment in all of our business activities.

2. Reduction in Environmental Impact
Recognizing the environmental burden of resource or energy consumption and waste emissions, we will work toward
reducing environmental impact by conserving energy or
resources, recycling resources, and promoting green purchasing.

3. Compliance with Environmental Laws
We will observe all environmental laws and regulations.

4. Promotion of Environmental Awareness Raising Activities
We will raise environmental awareness among all Group
members through awareness-raising activities to promote
environmental protection initiatives.

5. Continuous Improvement in Environmental Initiatives
By setting environmental objectives and reviewing them
regularly, we will endeavor to continuously improve ourenvironmental performance.
All members of the T&D Life Group are notified of this environmental policy, which is also publicly disclosed.

40
Posters Left) 2008 Cool Biz

Right) 2008 Warm Biz

Production and distribution of original Eco-bags
T&D Holdings has produced its own
original eco-bags and distributed
them to approximately 25,000 executives and employees (including parttimers, contract employees, etc.)
throughout the Group. Meaningful,first of all, as a means of promoting
participation in the “GPN Green
Purchasing Action with 500 Million
People” movement to reject the useof store-provided bags when shopping, these bags are being put tomany good uses.

Participation in the “GPN Green Purchasing Action
with 500 Million People” movement
T&D Holdings is a member and active supporter of the Green
Purchasing Network (GPN), a nationwide organization that,with a membership consisting of companies, governmental
bodies, and consumers, promotes the purchasing of products
and services with relatively small environmental burdens.
In the second half of fiscal 2007, T&D holdings joined the“GPN Green Purchasing Action with 500 Million People” initiative to reject the use of store-provided bags when shopping,and called on all of its executives and employees to support
this cause.

Call for Team Minus 6% “Personal Challenge
Declarations”
The T&D Life Group is calling on all of its executives andemployees to heighten their awareness of the need to promote
environmental protection in the workplace and at home, andmake Team Minus 6% “Personal Challenge Declarations” toactively work to stop global warming, beginning with places
close at hand.

For the Future of the Global Environment

Acknowledging the importance of environmental
issues, the T&D Life Group will carry out businessactivities with full awareness of the importance of environmental concerns and will give sufficient consideration to global environmental protection based on the
T&D Life Group CSR Charter. The Group will achievesustainable growth along with the society while fulfilling the public mission of life insurance and other businesses, and undertaking its corporate social responsibilities.
The Group established the following environmental
policy and is committed to complying with it in all of its
business activities.

Global Environmental Protection

For the Future of the Global Environment

Environmental Objectives and Achievements

Group Environmental Burden Data

In the second half of fiscal 2007, T&D Holdings began setting
quantitative environmental objectives. Using these objectives, it
periodically re-examines and continuously improves on initiatives aimed at lowering its environmental burden.

Key environmental burden data and scopes of coverage for the
T&D Life Group are provided below.

Base fiscal year
(FY 2006 2nd through FY 2007 1st half)Electricity consumption

Overall volume:5-year average (FY 2008-2012)
2% or greater reduction vs. base fiscal year
Per unit of floor space:Do not exceed the level
for the base fiscal year

Objective

For the Future of the Global Environment

9,991
10,000Overall volume: 0.3% reduction vs. base fiscal year
Per unit of floor space: Level for the base fiscal year
On both “overall volume” and “per unit of floor
space” bases, electricity consumption came in
4.5% higher than the FY 2007 objective.

9,000

FY 2007 Result

Causes of increase
Greater number of employees inthe building and an increase in
the number of OA devices used
Measures
Room temperature management(Cool Biz/Warm Biz), turning offof lights when not in use, greaterattention to electricity usage
management outside of normal
operating hours, and other redoubled energy efficiency measures
Scope
Shiodome Shibarikyu Building(Head office location)(T&D Holdings, Taiyo Life, Daido
Life, T&D Financial Life, T&D Asset Management)

0(Unit: kWh/m2)(Unit: 1,000kWh)

2,827

2,900
2,800

2,714

165

2,706
162

2,700
2,600

0

155

170

155

FY 2006 FY 2007 FY 2007
Data Objective Result

160
155

0

Office paper consumption(Paper for use in copiers, printers, etc.)
Objective

Base fiscal year
(FY 2006 2nd through FY 2007 1st half)

7% or greater reduction in 2012 vs. base fiscal year
(1.3% year-on-year reductions)

FY 2007 Objective 0.6% reduction vs. base fiscal year
FY 2007 Result

0.1% below the FY 2007 overall
consumption objective(Unit: kg)

9,000

8,925
8,870

8,900

8,860

8,800

0

FY 2006 FY 2007 FY 2007
Data Objective Result

Measures
Use of IT to advance paperless operations, waste reduction through greater individual awareness, andreduction in volume used
Scope
T&D Holdings

FY 2006

FY 2007

2 Trend in Electricity Consumption (Unit: 1,000kWh)
18,25018,00017,654
17,287

17,0000

FY 2005

FY 2006

FY 2007

Nearly all of the Group’s CO2 emissions are related to the consumption of purchased electricity in its offices. Emissions figures also include a small amount of emissions resulting from theuse of city gas.
* CO2 emission calculations use emission coefficients based on Appendix 1 of the
Ministry Order Concerning the Calculation of Greenhouse Gas Emissions
Produced in Conjunction with the Business Activities of Specified Emitters(Ministry of Economy, Trade and Industry and Ministry of the Environment
Ordinance No. 3, March 2006).
* Change in the Method for Calculating Electricity Consumption
Beginning with the 2008 edition of this report, a graph showing electricity consumption for the percent of floor space used exclusively by Group operations forthe most recent fiscal year and the two preceding fiscal years is being presented.
Therefore, the reporting values differ from those provided in the 2007 edition of
the CSR Report.

3 Trend in Water Consumption (Unit: 1,000m3)
81
72

80

Objective

Priority purchasing of environmentally friendly officeproducts (%) (Green purchasing ratio) 95% or greater60

FY 2007 Result

Green purchasing ratio 96.4%

40

Measures
Target not only purchasing personnel, but all employees ininitiatives aimed at achieving thorough understanding of green
purchasing, and office product recycling and other specificmeasures, in order to achieve thorough adoption of green
purchasing practices.
Scope
T&D Holdings

FY 2005

19,000100

Green purchasing ratio(Unit: ton)

10,563

10,301

FY 2007 Objective

Overall volume: Bar graphElectricity usage per unit of floor space:Line graph

41

1 Trend in CO2 Emissions
11,0008020
0FY 2005

FY 2006

FY 2007

T&D Life Group CSR report 2008

Environmental Communications
The T&D Life Group is working with the NPO, Associates of the
Earth, which produces the Japanese versions of “Our Planet” and“TUNZA” published by United Nations Environment Programme,
to deepen understanding of environmental issues by distributing
these two publications to Group companies, primary and middle
schools, public libraries, and other entities. Additionally, throughseminars for Group company executives and e-learning materials
for employees, the T&D Life Group is working to achieve broad
understanding of environmental problems.

4 Trend in Paper Consumption AmountAmount used: Bar graph(Unit: ton)

Sheets of paper used: Line graph(Unit: million sheets of paper)

234

223

250

194
200

80

59

54

46

150

100

60

100

40

50

20

0

FY 2005

FY 2006

0

FY 2007

5 Trend in Amount of Waste Generation
and Recycle
Paper waste

Waste otherthan paper

Recycleratio:
Line graph(Unit: %)Final disposed
amountRecycled
amount

1,000
800

42

100
783

85
84

83

OUR PLANET
Japanese-language edition 2008.
Vol. 2 (11 volumes in all)
A magazine published by UNEP
and read in over 120 countries
throughout the world

80

132

605
522

600

530

99

60

78

400

344
651

34

506

40
452

233 21

132

61

74
59

FY 2006

FY 2007

200
177

0

FY 200544294

a Related website

20

http://www.ourplanet.jp/supporters.htm
0

Scope of environmental burden data

Voice

The scope of environmental burden data has changed since thehead office functions of T&D Holdings, Taiyo Life, Daido Life,
T&D Financial Life, and T&D Asset Management were consolidated in the Shiodome Shibarikyu Building in July 2006.

Scope of Environmental
Burden Data

Graph

1 2 3

4

5

(Note 2)

T&D Holdings
Shiodome Taiyo Life
Shibarikyu Daido Life
Building
T&D Financial LifeTUNZAJapanese-language edition
2008. Vol. 2 (12 volumes in all)
A magazine published byyoung people for young people. Promotes understandingof various types of environmental information in a fun,easy-to-understand manner(Note 3)

T&D Asset Management
Tokyo Daido Life Building
Daido Life Osaka Head Office Building
Taiyo Life Urawa Building (Note 1)(Note 1) T&D Information Systems and T&D Customer Services are located in the
Taiyo Life Urawa Building.
(Note 2) The scope for office paper usage comprises the head office units of thethree life insurance companies and includes usage by head office units inlocations other than that noted above.
(Note 3) This is waste processing data for the entire Shiodome Shibarikyu Building
and includes waste contributions from companies, restaurants, retailers,and other entities not associated with the T&D Life Group.

Environmental NPO, Mr. Jun Miyauchi
Chairman of Associates of the Earth

Carrying on with efforts begun lastyear, we again sponsored the “UNEP‘Focus on Your World’ International
Photographic Competition on theEnvironment at International Airports”
in seven of Asia’s international airports. Many people viewed these photographs with great interest, giving me
a very palpable sense of a rising consciousness of the environment. I was also reminded of the value ofusing an international airport as a venue for environmental communication on a global scale, and of the significance of our activities.
Associates of the Earth has been operating for five years now, andwith each year I’m gaining a greater sense of responsiveness to ouractivities. We are seeing more and more companies coming to us foradvice on environmental activities and other topics, and we areforming a bridge between companies and society by offering ideas
and opportunities. Moving forward, we aim to promote understanding of environmental protection approaches rooted in Japanese culture, and their significance.

For the Future of the Global Environment

Waste
generated:
Bar graph(Unit: ton)Third Party Opinion

Ms. Mariko Kawaguchi
Senior Analyst, Management Strategy
Research Department
Daiwa Institute of Research Ltd.

Third Party Opinion

43

This is the fourth year that I have had the pleasure of reviewing the T&D LifeGroup’s CSR Report. As a member of the life insurance industry, in which mostof its competitors are mutual companies and information disclosure and communication are not fortes, the T&D Life Group can be praised for being among thefirst to adopt the holding company and joint-stock format and for its proactive
stance on information disclosure. Each time I have reviewed its past reports, I
have noticed that it has visibly widened the scope of information it provides, andgradually advanced its CSR activities and ideas on information disclosure withspecific content. With this edition of its report, however, the company appears tohave taken a slight step backward in that sense, possibly because of its having
received a business improvement order from the Financial Services Agency.
This edition of the report has two feature sections, with one focusing on the proper
payment of insurance claims and benefits. Last year’s report also addressed the
problem of inadequate insurance claim and benefit payments, providing specificand detailed descriptions of what happened and the corrective actions to be taken.
This report continues by providing in one of its feature sections an overview of thebusiness improvement order issued by the Financial Services Agency this year
and the improvement plans of individual companies.
That the company is disclosing and explaining these plans is undoubtedly important as a matter of information disclosure policy. However, simple summary
descriptions of technical business improvement plans come up short in terms ofproviding the general audience with meaningful, comprehensible information onwhat problems existed, the company’s views on their consequences, and how
those views will be reflected in future operations. In particular, there is the question of why problems emerged in the first place. The reasons are not clearly
explained. The nonpayment of insurance claims and benefits is an industry-wide
problem, and it further appears to be a structural problem rooted in the life insurance business itself. If the T&D Life Group, as a listed life insurer, provides aclearly understandable explanation of the type of structural problem at hand, it
will probably also see an increase in the persuasiveness of its improvement plans.
The report’s other feature is on the environment and covers the volunteer forest maintenance activities of Taiyo Life employees. Forest maintenance has
become a focus of attention in recent years and is a highly effective way tomake employees in the insurance industry, which appears to have little connection to the environment, aware of environmental problems. In addition,
though using wood from thinning operations is commonly appreciated amongexperts as important for forest maintenance, the general public has yet to adequately appreciate this point. Using wood from thinning operations to makechopsticks and leaflets allows the company’s employees in general to see theimportance of the concept of forest recycling, and makes them ever moreaware of the significance of participating in such activities. These practices arealso deserving of high praise as effective tools for broadly promoting understanding of the importance of wood from thinning operations. I definitely want
to see the T&D Life Group continue, and expand, these activities. The Daido
Life’s green space, too, is a pioneering initiative amid expectations that efforts
in areas like reducing the environmental burden of office buildings, andafforestation, will spread. I would be very happy to see the T&D Life Group
apply its green space concept to its other buildings, as well.

In my review of last year’s report, I asked the company to adopt environmentally conscious practices in its operations. This year’s report includes an explanation of the Principles for Responsible Investment, which Taiyo Life hassigned on to, and descriptions of business practices and shareholder activities
that apply them. The Principles for Responsible Investment have now been
adopted by over 400 institutions throughout the world and have become
accepted by the investment world as givens for advancing investment activities that are conscious of social, environmental, and governance concerns.
That said, however, only 13 Japanese institutions have signed on. Looking atpension funds, insurance companies, and other institutions managing financial
assets, in particular, the number drops to only 3. Having more Japanese institutions adopt the Principles for Responsible Investment is, therefore, a key concern, and I would like to express my fervent desire that Taiyo Life, as the firstJapanese life insurer to sign on, actively apply the principles and disclose its
performance in that respect. Perhaps Daido Life, too, should adopt the
Principles for Responsible Investment. While the report discusses T&D AssetManagement’s China environmental fund, I look forward to seeing other T&D
Life Group companies sign on to the Principles for Responsible Investment,
and the Group as a whole actively applying them. Though global capital markets are currently suffering from widespread disruption, investment should
always consider environmental and social impacts—in other words, implications for society. And it is particularly at times of market upheaval when it isimportant to highlight investment that is responsible and true to fundamentals.
Turning to this report’s environmental data, the company deserves praise forgathering and disclosing its office building environmental burden in terms ofelectricity, water, and paper consumption, and CO2 emissions. The Tokyo
metropolitan government is developing plans for its own emission rights market, which will include an emission framework for commercial enterprises,
including office buildings, and there is movement toward mandatory environmental burden reductions that will cover the financial sector, as well.
Environmental burden identification and reduction planning, therefore, will
become a business requirement, and not just an act of corporate citizenship.
Looking at the fiscal 2007 figures for the T&D Life Group, the explanation forthe major increase in electricity consumption is inadequate. Especially because
it failed to achieve its objective by a significant margin, I would like to see thecompany ascertain the causes and steadfastly move forward with efforts toachieve future plans.
Regarding its interactions with customers, every one of the T&D Life GroupCSR reports I have reviewed has given me the strong impression that thisinsurance group is highly customer oriented and very detailed in its information disclosure. Nevertheless, it is regrettable that this year’s report has omitted detailed disclosures of complaints and other matters, which were included
in last year’s report. Negative information is, paradoxically, critical forstrengthening public trust in a company, as it demonstrates the company’s sincerity in facing its customers. I, therefore, would like to ask the T&D LifeGroup to exercise its customer-oriented strength and continue evolving its
information disclosure and communication stances as Japan’s first publicly
listed life insurance group.

T&D Life Group CSR report 2008

Comparative Table on GRI Guidelines

1

Indicator

1.1

Statement from the most senior decision-maker of the organization (e.g.,CEO, chair, or equivalent senior position) about the relevance of sustainability
to the organization and its strategy
3-4
Description of key impacts, risks, and opportunities
3-4

1.2

2

Organizational Profile

2.1
2.2
2.3

Name of the organization
1
Primary brands, products, and/or services
21-22,25
Operational structure of the organization, including main divisions, operatingcompanies, subsidiaries, and joint ventures
1,45
Location of organization’s headquarters
1
Nature of ownership and legal form
1Markets served (including geographic breakdown, sectors served, and typesof customers/beneficiaries)
1,21-22
Scale of the reporting organization
1,14
Significant changes regarding size, structure, or ownership
15

2.4
2.6
2.7
2.8
2.9

3

Pages in this report

Strategy and Analysis

Report Parameters

Report Profile
Reporting period (e.g., fiscal/calendar year) for information provided
2
3.1
Date of most recent previous report (if any)2
3.2
Reporting cycle (annual, biennial, etc.)2
3.3
Contact point for questions regarding the report or its contents
Back cover
3.4
Report Scope and Boundary
Boundary of the report (e.g., countries, divisions, subsidiaries, leased facili3.6
ties, joint ventures, suppliers)
2State any specific limitations on the scope or boundary of the report2
3.7
Data measurement techniques and the bases of calculations, including
3.9
assumptions and techniques underlying estimations applied to the compilationof the indicators and other information in the report
41-42
GRI Content Index
Table identifying the location of the Standard Disclosures in the report44
3.12
Assurance
Policy and current practice with regard to seeking external assurance for the
3.13
report.
43

4

Governance, Commitments, and Engagement

Governance
4.1

Governance structure of the organization, including committees under thehighest governance body responsible for specific tasks, such as setting strategy or organizational oversight11
For organizations that have a unitary board structure, state the number of
4.3
members of the highest governance body that are independent and/or nonexecutive members
11
Mechanisms for shareholders and employees to provide recommendations or
4.4
direction to the highest governance body
11
Processes in place for the highest governance body to ensure conflicts of
4.6
interest are avoided
11
Internally developed statements of mission or values, codes of conduct, and4.8
principles relevant to economic, environmental, and social performance andthe status of their implementation
4,6
Procedures of the highest governance body for overseeing the organization’s
4.9
identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles
6,11-13,19
Processes for evaluating the highest governance body’s own performance,
4.10
particularly with respect to economic, environmental, and social performance
12,35-36
Commitments to External Initiatives
Explanation of whether and how the precautionary approach or principle is
4.11
addressed by the organization
13,29-30
Externally developed economic, environmental, and social charters, princi4.12
ples, or other initiatives to which the organization subscribes or endorses
19
Memberships in associations (such as industry associations) and/or
4.13
national/international advocacy organizations in which the organization:· Has positions in governance bodies;· Participates in projects or committees;· Provides substantive funding beyond routine membership dues; or· Views membership as strategic.
2
Stakeholder Engagement
List of stakeholder groups engaged by the organization
4
4.14
Approaches to stakeholder engagement, including frequency of engagement
4.16
by type and by stakeholder group26-28,33,35-36
Key topics and concerns that have been raised through stakeholder engage4.17
ment, and how the organization has responded to those key topics and concerns
7-10,26-28,33

5Management Approach and Performance Indicators

Economic Performance Indicator[Aspect: Economic Performance]
Direct economic value generated and distributed, including revenues, operatEC1
ing costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments
14,37-49
Financial implications and other risks and opportunities for the organization’s
EC2
activities due to climate change
13,19-20[Aspect: Indirect Economic Impacts]
Development and impact of infrastructure investments and services provided
EC8primarily for public benefit through commercial, in-kind, or pro bono engagement
37-39

Item

Indicator

Pages in this report

Understanding and describing significant indirect economic impacts, including
the extent of impacts
14-15
Environment Performance Indicator[Aspect: Energy]
Direct energy consumption by primary energy source
41-42
EN3
Energy saved due to conservation and efficiency improvements
41-42
EN5
[Aspect: Water]
Total water withdrawal by source
41-42
EN8
[Aspect: Biodiversity]
Habitats protected or restored
17
EN13
Strategies, current actions, and future plans for managing impacts on biodiEN14
versity
20[Aspect: Emissions, Effluents, and Waste]
Total direct and indirect greenhouse gas emissions by weight
41
EN16
Initiatives to reduce greenhouse gas emissions and reductions achieved
EN18
40-41
Total weight of waste by type and disposal method
42
EN22
Labor Practices & Decent Work Performance Indicators[Aspect: Employment]
Total workforce by employment type, employment contract, and region32
LA1
Benefits provided to full-time employees that are not provided to temporary or
LA3part-time employees, by major operations
31-33[Aspect: Occupational Health and Safety]
Education, training, counseling, prevention, and risk-control programs in placeLA8
to assist workforce members, their families, or community members regarding
serious diseases
33
Health and safety topics covered in formal agreements with trade unions 33
LA9[Aspect: Training and Education]
Programs for skills management and lifelong learning that support the continLA11
ues employability of employees and assist them in managing career endings
24,31
Composition of governance bodies and breakdown of employees per category
LA13
according to gender, age group, minority group membership, and other indicators of diversity
32
Society Performance Indicators[Aspect: Community]
Nature, scope, and effectiveness of any programs and practices that assess
SO1
and manage the impacts of operations on communities, including entering,
operating, and exiting
37-39[Aspect: Corruption]
Percentage and total number of business units analyzed for risks related toSO2corruption
13
Percentage of employees trained in organization’s anti-corruption policies andSO3procedures
29-30
Product Responsibility Performance Indicators[Aspect: Customer Health and Safety]
Life cycle stages in which health and safety impacts of products and services
PR1
are assessed for improvement, and percentage of significant products andservices categories subject to such procedures
26-28
Total number of incidents of non-compliance with regulations and voluntary
PR2
codes concerning health and safety impacts of products and services, by typeof outcomes7[Aspect: Product and Service Labeling]
Practices related to customer satisfaction, including results of surveys measPR5
uring customer satisfaction
26-28[Aspect: Marketing Communications]
Programs for adherence to laws, standards, and voluntary codes related toPR6marketing communications, including advertising, promotion, and sponsorship
30,34
EC9

6

Financial Services Sector Supplement

Corporate Social Responsibility (CSR) Management
CSR policy
6
CSR1
CSR organization
6
CSR2
Management of sensitive issues
7-10
CSR4
Stakeholder dialogue
12,26-28
CSR6Internal Social Performance
Internal CSR policy
6
INT1
Staff turnover and job creation
32
INT2
Employee satisfaction
32
INT3
Performance to Society
Charitable contributions
37-39
SOC1
Economic value added
14-15
SOC2
Investment Banking
Investment policy (socially relevant elements)
19,20
IB1
Transactions with high social benefit
20
IB3
Asset Management
Asset management policy (socially relevant elements)
19,20
AM1
SRI oriented shareholder activity
19,20
AM3
Insurance
Underwriting policy (socially relevant elements)
34
INS1
Customer profile
21-22
INS2
Customer complaints
26-28
INS3
Insurances with high social benefit
34
INS4
Environmental Performance Indicators
Description of environmental policies applied to core business lines
40
F1
Description of process(es) for improving staff competency in addressing
F5
environmental risks and opportunities
41
Description of interactions with clients/investee companies/business partners
F7
regarding environmental risks and opportunities
42

44
Comparative Table on GRI Guidelines

Item

The T&D Life Group’s Subsidiaries and Affiliates

T&D Holdings, Inc.
Company Name:
T&D Holdings, Inc.
Date of Establishment: April 1, 2004
Location of
1-2-3 Kaigan, Minato-ku,
Headquarters:
Tokyo 105-0022, Japan
Capital Amount:
118.5 billion yen
Number of Employees: 112
Accounting Auditor:
ERNST & YOUNG
SHINNIHON LLC

Type of Business: As both an insurance holding company and smallamount short-term insurance holding company, theT&D Life Group engages in the following businessactivities.
·The management of subsidiary companies in accordance with the provisionsof life insurance and other insurance business laws.
·All duties incidental to the above business
URL: http://www.td-holdings.co.jp/e/Group Members:

As of March 31, 2008, the T&D Life Group consists of T&D Holdings, 17 subsidiaries, and 2 affiliates,
which, in addition to core life insurance operations, are engaged in the following business activities.

Insurance & Insurance related Businesses (7 companies)
Insurance Business45• : Consolidated subsidiary ▲ : Equity method affiliate• Taiyo Life Insurance Company

http://www.taiyo-seimei.co.jp/• Daido Life Insurance Company

http://www.daido-life.co.jp/• T&D Financial Life Insurance Company

http://www.tdf-life.co.jp/• Pet and Family Small-amount Short-term Insurance Company

http://www.petfamilyins.co.jp/

Insurance-related• T&D Confirm Ltd.

Businesses• Toyo Insurance Agency Co., Ltd.

http://www.toyohokendaiko.co.jp/• Daido Management Service Co., Ltd.

http://www.dms-hp.co.jp/

Investment related Businesses (7 companies)

The T&D Life Group’s Subsidiaries and Affiliates

Investment Management • T&D Asset Management Co., Ltd.

http://www.tdasset.co.jp/

and Advisory Business• T&D Asset Management (U.S.A.) Inc.

Other Asset• T&D Lease Co., Ltd.

Management-related• T&D Asset Management Cayman Inc.

Business• Taiyo Credit Guarantee Co., Ltd.

http://www.taiyo-sinyo-hosyo.co.jp/▲ Alternative Investment Capital Ltd.

http://www.aicapital.co.jp/

http://www.taiyo-life-lease.co.jp/▲ AIC Private Equity Fund General Partner, Ltd.

Administration and General Affairs-related Businesses (5 companies)
Administration• T&D Customer Services Co., Ltd.

related Businesses• Taiyo Life Career Staff Co., Ltd.

http://www.taiyo-seimei-careerstaff.co.jp/

General Affairs and• T&D Information Systems, Ltd.

http://www.td-system.co.jp/

Calculation related• Zenkoku Business Center Co., Ltd.

http://www.zbc-jp.com/

Businesses• Nihon System Shuno, Inc.

http://www.nss-jp.com/

Public Corporations

Taiyo Life Himawari Foundation
Daido Life Welfare Foundation

http://www.daido-life-welfare.or.jp/

The Daido Life Foundation

http://www.daido-life-fd.or.jp/[About the Cover......................With all of our hearts]
The paper rings symbolize bonds of trust with stakeholders and are accompanied
by an origami heart expressing sincerity.
This image incorporates the hope that the sincerity of individual T&D Life Group
executives and employees will win the absolute Trust of stakeholders, and thedesire for the T&D Life Group to thrive together with, and be a positive contributor to, society in perpetuity.

T&D Life Group CSR report 2008

The T&D Life Group’s CSR Activities

1974
1984
1985
1992

Daido Life founded the Daido Life Welfare Foundation.

1993
1994
1995
1998
1999
2003

Daido Life abolished uniforms for female employees and sent those uniforms to Peru and Thailand through the Japan Relief Clothing Center.

2004

T&D Holdings was established.
Daido Life implemented a unique and outstanding strategy that resulted in its receiving of a “2004 Porter Prize,” as acompany that has achieved and maintained superior profitability.

2005

The CSR Team was established in the Public Relations Department of T&D Holdings.
T&D Life Group participated in “Team Minus 6%” and implemented the “Cool Biz” and “Warm Biz” campaigns.
T&D Life Group provided relief aid for victims of the Sumatra Earthquake.
Taiyo Life Goodwill Circle Associates was established. “Forest of Taiyo Life” was established in Nasu-shiobara City,
Tochigi Prefecture, and launched afforestation activities.
The Group’s three life insurance companies re-examined data related to the nonpayment of insurance claims & benefits
and strengthened payment management systems.

Taiyo Life established the Taiyo Life Himawari Foundation in commemoration of the Company’s 90th anniversary.
Daido Life established the Daido Life Foundation in commemoration of the Company’s 80th anniversary.
In commemoration of the Company’s 90th anniversary, Daido Life established the Daido Life Employee’s Community
Contribution Club or Goodwill Club, a voluntary corporate citizen activity organized by its employees.
Daido Life provided special assistance for the inaugural Yu-Aipic Tokyo Games, which was a national sports competition
for the mentally handicapped and Daido Life supported it every year it was held, through both financial assistance andthe efforts of employees volunteering their time.
Daido Life began providing special assistance for the National Sports Games for the Disabled in and after October 2001.

Taiyo Life started its nationwide volunteer activity, the Goodwill Circle.
Taiyo and Daido Life supported volunteer relief activities and gave monetary donations to the Great Hanshin Awaji Earthquake victims.
Daido Life started marketing of a special discount rider for especially healthy people (for smokers and non-smokers).
Daido Life started marketing of a term insurance for people with diabetes and hypertension.
Taiyo Life started marketing of “Yasashii Hoken”, a non-selective-type medical insurance that policyholders can apply
for without medical examination or explaining their health conditions.
Daido Life held open seminars on management and business in cooperation with several universities.
T&D Financial Life implemented the Summer Ecology Style campaign.

Established the T&D Life Group CSR Charter, T&D Life Group Compliance Code of Conduct, and T&D Life Group Environmental Policy.
Introduced the Executive Officer System, and reinforced corporate governance systems.
Consolidated the headquarters functions of T&D Holdings, Taiyo Life, Daido Life’s Tokyo head office, T&D Financial Life, and T&D AssetManagement in the environmentally conscious, energy-efficient Shiodome head office building.
Taiyo Life launched “Kisei Kanwa”, which offers more coverage options and can be purchased with a simple disclosure of health status.
Taiyo Life became a signatory to the Principles for Responsible Investment.

2007

The Pet and Family Small-amount Short-term Insurance Company began operations.
The Group’s three life insurance companies were awarded certifications under the Law for Measures to Support the Development of
the Next Generation.
The Group’s three life insurance companies disclosed the results of internal investigations of insurance claim and benefit payments.
In the second half of fiscal 2007, the Group began an initiative in which quantitative electricity consumption and other objectives are
set and used to periodically re-examine and continuously improve on measures aimed at lowering the environmental burden of T&D
Holdings, its three life insurance companies, and T&D Asset Management (head office).
The “Taiyo Life Kutsuki no Mori” was established in Takashima City, Shiga Prefecture, and forest development activities were begun.

2008

Taiyo Life obtained ISO10002 certification.
Daido Life received a business improvement order, under Article 132 Item 1 of the Insurance Business Law, from the
Financial Services Agency, submitted a business improvement plan to that agency, and disclosed an overview of that plan.
Taiyo Life and T&D Financial Life disclosed information on the status and results of business improvement measures they
are taking with regard to their payment management systems.

(Through October)

Afterword
The purpose of this report is to communicate as clearly as
possible the T&D Life Group’s CSR approach and activities. To communicate clearly, this report first of all relates
information concisely. Second, it has been produced withthe basic intent of conveying the dynamism and untapped
potential of the Group through the faces and comments ofpeople advancing various Group and Group company initiatives. Whether this report has successfully done thesethings will be determined based on the feedback of read-ers. That feedback will be reflected in future reports.
We will be very pleased if this report is successful in helping stakeholders achieve a deeper understanding of the
T&D Life Group. This report is a mirror for highlighting
issues we need to address, becoming a better corporategroup, and contributing even more to our stakeholders. In
that light, we welcome your candid opinions and requests.
Public Relations Department, T&D Holdings

The T&D Life Group’s CSR Activities/Afterword

2006

46

Try & Discover

1-2-3 Kaigan, Minato-ku, Tokyo 105-0022 Tel. +81(3)-3434-9111

http://www.td-holdings.co.jp/e/

mail : csr@td-holdings.co.jp

This report is using colors that areeasily identified by people with all typesof color vision, and gained a color
universal design certification from theColor Universal Design Organization(CUDO), an NPO in Japan.

Stop Global Warming
Team minus 6%

The T&D Life Group is a member of Team minus 6%

The T&D Life Group is practicing
green purchase.

This report was produced with FSC-certified paper,
100% vegetable-oil-based ink, and a waterless printing process.

Published January 2009