T&D Life Group
T&D Life Group CSR Report 2007

A Life Insurance Group that People Can TrustCONTENTS

The T&D Life Group’s Outline
Message from the President

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The T&D Life Group CSR Report was prepared for all
the Group’s stakeholders to explain in simple terms the

Toward Restoring Faith
The Results of the Examination of Insurance Claim &Benefit Payments and the Response in the Future

About the T&D Life Group CSR Report

Group’s thinking and activities regarding its corporatesocial responsibility.

5● “The 2006 Sustainability Reporting Guidelines”,

T&D Life Group CSR
Our Brand of CSR
Basic CSR Concepts
Corporate GovernanceRisk Management

which are international guidelines on sustainability

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reporting, prepared by the Global Reporting
Initiative were used as a reference in preparing thisreport, and information was selected for inclusion
based on considerations of the materiality of
initiatives undertaken. Please refer to page 44.

Financial Summary
Status of Operations● Third-party opinions and advice regarding this17

report were received from Senior Analyst Ms.
Mariko Kawaguchi of the Daiwa Institute of
Research. Please refer to page 43.

CSR Initiatives
T&D Life Group CSR Initiatives

20

TOPICS

activities and financial performance have beenposted on the Company’s website, and you may

Offering of Better Products and Services
Activities Aimed at Increasing Customer Satisfaction
Reflecting Customers’ Voices in Operations
Offering Products and Services that Meet Customer Needs● Detailed information on the T&D Life Group CSR

refer to it at the following website.

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http://www.td-holdings.co.jp/ePeriod Covered by This Report
Fiscal 2006 from April 2006 to March 2007
*Information on some activities occurring in April

Strict Compliance
Strict Compliance2007 or later has also been included.

31
Reporting Scope

Respect for Human Rights
Initiatives to Improve Employee Motivation

T&D Life Group Companies Please refer to page 45.

33

Previous Publication
August 2006

Communication
Pursuing Proactive Communication Activities

37

Scheduled Next Publication
August 2008

Contributions to Regions and Societies
Activities as a Good Corporate Citizen

39

Organization to Which the Three Life
Insurance Companies Belong
The Life Insurance Association of Japan

Global Environment Protection

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For a Sustainable Global Environment

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

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T&D Life Group CSR Report 2007

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 – under theholding company T&D Holdings.
Each of these three life insurance companies have their respective strengths and uniqueness in their own specialist fields,
supporting both people’s living and businesses. Taiyo Life specializes in the household market, Daido Life in the small andmedium-sized enterprise (SME) market, and T&D Financial Life in the individual variable annuities market.

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

Household market

Small and medium-sized enterprise (SME)
marketIndividual variable annuities
marketCorporate Data (as of March 31, 2007)
T&D Holdings, Inc.
● 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
108

Taiyo Life Insurance Company● Date of Establishment

February 1948 as a mutual company● Location of Headquarters

1-2-3 Kaigan, Minato-ku, Tokyo
105-0022, Japan¥37.5 billion
In-house sales representatives: 8,116
Customer service personnel: 1,143
Administrative personnel: 2,735
11,994 in total(Founded in May 1893 as Nagoya Life Insurance Co., Ltd.)● Capital Amount● Number of Employees

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: 3,212In-house sales representatives: 4,276
7,938 in total

Financial Data

Years ended March 31

2005

2006

2007

Ordinary Revenues

23,16724,442

22,860Ordinary Profit

1,088

1,368

1,581

Net Income

371

355

387

Total Assets

130,434

139,862

140,909

Net Assets

5,823

10,80010,902

Consolidated Operating Results(in hundred millions of yen)

Consolidated Financial Conditions(in hundred millions of yen)

Consolidated per Share
Figures (in yen)

155.41

146.19157.45

Shareholders' Equity per Share

2,410.76

4,384.93

4,419.55

Cash Dividends Applicable to the Year

45.00

55.00

65.00

Existing Policy Amount in Force

595,735

602,650

598,999

New Policy Amount75,44972,93866,347

Core Profit

1,298

1,272

1,733

Net Income per ShareManagement Indicators(in hundred millions of yen)

Consolidated Return on Equity (%)
Embedded Value

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

July 1947 (Founded in April 1895 as
Tokyo Life Insurance Company)
1-2-3 Kaigan, Minato-ku, Tokyo
105-0022, Japan¥36 billion
320

6.6

4.3

3.6

11,98319,92821,333

Notes:Management indicators other than ROE are based on the aggregate
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.

2

Message from the President

The T&D Life Group Benefits both
Individuals and Society
Introduction

The T&D Life Group began to come together in January
1999 with a full business partnership combining Taiyo Lifeand Daido Life, which then acquired the shares of T&D
Financial Life formerly Tokyo Life. Taiyo Life and Daido
Life then underwent a restructuring converting the combined
entity from a mutual company into a joint stock corporationand listed their shares. In April 2004, T&D Holdings wasestablished as a holding company and managerial functions
were integrated under it.
To strengthen ties among Group companies and enhance
operating efficiency, the headquarters functions of T&D
Holdings, Taiyo Life, Daido Life, T&D Financial Life
referred to below as “the Group’s three life insurancecompanies”, and T&D Asset Management were brought
together in the same environmentally conscious, energyefficient building in July 2006. Entering this year, the Pet
and Family Small-amount Short-term Insurance Company
was added to the Group to pursue a new business strategy
focusing on pets and families, and T&D Asset Management
was made into a direct subsidiary in an effort to develop
asset management as a second core business, behind life
insurance. Through these and other measures, the T&D LifeGroup has steadily worked to achieve sustainable growthamid turbulent business conditions around the Group.
In the face of a significantly changing business environment,
the T&D Life Group works on a daily basis to establish
management systems and rules suited to a new era, and offer
customers optimal products and services, based on its
corporate philosophy of “contributing to people and tosociety by creating value under the motto ‘Try & Discover’.”Despite those efforts, however, re-examinations in regard to
insurance claim & benefit payments made by the Group’s
three life insurance companies over the past five years haverecently determined that additional payments are necessary.

Try &Discover3

T&D Life Group CSR Report 2007

The payment of claims & benefits is a fundamental, andindeed the most important, function of an insurancecompany, and we express our heartfelt apologies to all of our
stakeholders, especially our customers, that the need for
additional payments has arisen.
The entire T&D Life Group will do its utmost to ensure thatsuch a need never arises again, and ask for yourunderstanding in this regard.

To Be a Trusted Insurance Group

Having positioned CSR as its top management priority, theThe essence of CSR at a life insurance company is toGroup is moving forward with various initiatives based onpractice strict compliance and to faithfully, and accurately,

the T&D Life Group CSR Charter, the T&D Life Groupfulfill the core purpose of the insurance business.

Compliance Code of Conduct, and the T&D Life Group

With people now commonly living 80-90 years, the T&D

Environmental Policy, all of which were established in April

Life Group is constantly working to enhance customer

2006.

satisfaction and is firmly intent on being the insurance group

The T&D Life Group is working to win ever greater degrees

people choose for their lifetime. It is essential that eachof social trust through strict compliance based on a highT&D Life Group executive and employee constantly bear insense of ethics, and to earn even greater stakeholder faithmind the Group’s objective of playing a role like that of athrough proactive disclosure practices and enhanced IR

family physician, taking the customer’s perspective in

activities. Furthermore, as companies are supported byoffering multipurpose services that meet customer needs at

people, the T&D Life Group regards employees aseach phase of life, and being an insurance group that is

stakeholders every bit as important as customers and istrusted and sincerely supported by its customers.

taking positive measures in support of women’s careers, a

As a listed life insurance group, the T&D Life Group has

healthy work/life balance, and other matters to boost

endeavored to deepen communications with a broad

employee motivation from the perspective of human rights.

spectrum of stakeholders, including customers, shareholders,

As a result of our efforts to improve childcare support

capital markets, marketing agencies, employees, and local

system including encouraging employees to take childcare

communities, and others. Moving forward, the T&D Life

leave, the Group’s three life insurance companies wereGroup intends to appropriately provide stakeholders with

officially recognized for their support of childcare and were

information on how it is meeting its social responsibilities.

awarded certifications under the Law for Measures to

The T&D Life Group CSR initiatives are still in the process

Support the Development of the Next Generation.

of being developed and, by actively pursuing

In another area of social concern, financial institutions, as

communications with stakeholders, sincerely accepting

well as other companies, are being called upon to redouble

stakeholder expectations, and sparing no effort in living up

their efforts to protect the environment in light of theto them, we will strive to be an insurance group that isincreasingly serious issue of global warming. For its part,

trusted by and continues to grow together with society.

the T&D Life Group is moving forward with concrete steps

We look forward to your reading this report and responding

to achieve quantitative objectives it has set for reducing

to us with your comments and requests regarding theelectricity consumption, cutting the use of paper forGroup’s CSR initiatives.

Message from the PresidentGroup Activities

administrative purposes, and increasing green purchasing.
At the individual company level, Taiyo Life in March of thisyear became the first Japanese life insurance company toDecember 2007

sign onto The Principles for Responsible Investment “PRI”
being advocated by the United Nations Environment
Programme Finance Initiative “UNEP FI” and is managing
assets with full consideration for the need to integrate
environmental, social, and corporate governance. On another

Naoteru Miyato
President of T&D Holdings,Inc.

front, T&D Asset Management has established and is now
marketing a new environmental fund.

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Toward Restoring Faith

The Results of the Examination of Insurance Claim & Benefit Payments and the Response in the Future

Toward Restoring Faith

The Results of the Examination of Insurance Claim& Benefit Payments and the Response in the Future
On April 13, 2007, the T&D Life Group’s three life insurance

announced on October 5.

companies of Taiyo Life, Daido Life, and T&D Financial

The Group’s three life insurance companies apologize for theLife, provided a release on their examination of theirresult that additional claims and benefits should be paid,

insurance claim & benefit payments over a five-year period,

which was determined in the course of the examination, andfrom fiscal 2001 to 2005. At that time, they indicated thatthe great inconvenience caused to customers and otherthey planned to complete their examination by the end of

stakeholders by the delay in completing the examination. The

June. That objective, however, was not met and the

T&D Life Group will work to restore lost stakeholders’ faithexamination was actually completed at the end of September.

by bringing resources from throughout its organization to

The results of the examination and the corresponding status toensure that similar problems do not recur in the future.

prevent a recurrence of the problems identified wereManagement Department’s payment management system

Taiyo Life2) Strengthen machine-based check functions by digitalizing

1. Examination Results

physical examination certificate information

Taiyo Life paid insurance claims & benefits for a total of
1,768,713 policies over the five years covered by the3) Introduce an assessment simulator to improve reviewer
skillsexamination for fiscal 2001-2005. This number included

4) Enhance the function for preventing failures to encourage

claims and benefits for 1,756,297 individual insurance

the submission of claims by revising the workflow

policies and 12,416 group insurance policies. The number

system’s input screen

and value of all additional payments determined to be
Additional Payments

5) Terminate sales of new agreements for outpatient riders,long-term hospitalization riders, etc.

necessary are shown below.
(Number of payments, millions of yen)

NumberValue

1 Number of inadequate payments

2,234

224

2 Additional necessary payments clarified due
to claim guidance notifications to customers

6,580

638

Total

8,814

862

3.Progress in Advancing Preventive
MeasuresTaiyo Life has established its Payment Reform Promotion
Headquarters, which is headed by its Representative

As of September 30, additional payments have been completed for 8,468 (96.0 %) of the cases shown above.

Director and President under Board of Directors, and is
working to rapidly and solidly implement preventive
measures.
■ Operational revision for the proper payment

2. Future Measuresof insurance claims & benefits
1) Introduce a system to partially cover expenses by the■ Measures for Benefits Unpaid

Company for obtaining physical examination certificates

For benefits that are determined to be paid as a result of the

As of April 1, 2007, when an insurance or benefit claim

examination but were not, the Company will continue to act

is rejected despite the policyholder’s submission of the

on to resolve the remaining issues. Once those issues aredesignated physical examination certificates, thesettled, payments will be made promptly.
For cases in which the customer cannot be contacted, claim

Company will pay ¥5,000 for each certificate submitted.
2) Commence the handling of specified agent claims riders

documentation is not returned and the customer cannot be

As of October 1, 2007, the handling of specified agent

contacted, and other such cases, Taiyo Life will continue toclaims riders submitted by an agent specified in advance

attempt to contact customers both in writing and bytelephone until the end of fiscal 2012.

has been commenced.
3) Introduce to advise information to policyholders via
general notices■ Further Enhancement of Preventive Measures

Beginning with fiscal 2007, coverage details for each

To prevent payment errors and failures to encourage theinsured person will be displayed in the “Himawari

submission of claims, and properly pay insurance claims &Tsushin” general notice, which will be sent together with

benefits, Taiyo Life will improve the quality of its payment

Procedure Guidebooks intended to prevent omissions ofmanagement system.
1) Devote greater attention to enhancing the Risk

5

T&D Life Group CSR Report 2007

claims.
4) Improve payment explanations in selling or soliciting

Div., to 43 from 30.

customers with pamphlets titled “Claim Procedures for

Staffing have also been increased for the Customer

Insurance Benefits” prepared in April 2007, to explain theConsultation Center, the purpose of which is to promoteclaim procedures as well as cases in which payments canboth the gathering and analysis of customer complaints

be made and cannot be made.

and opinions, and the application of what is learned from

5) Provide detailed explanations when reports or claims arethem in management improvements. Staffing have also

received

been increased for the Claims & Benefits Consultations

An answer book for processing reports and claims will beDiv., the purpose of which is to receive opinions andprepared, and claim documentations etc. will be revised.

desires regarding insurance claims and provide more

6) Provide detailed explanations and introduce the notice toinformative explanations and careful response.

encourage the reconfirmation of the policy contents wheninsurance claims & benefits are paid
Payment statements issued when insurance claims &■ Enhancement of insurance claim & benefit

payment systems

benefits are paid to policyholders will be revised and the

The sweeping organizational reforms implemented on May

notice will be introduced to further encourage the1, 2007 included the establishment of a team within Benefits

reconfirmation of the policy contents.

Payment Management Units to focus on the development ofsystems and others, and the creation of the Benefit Payment■ Further Enhancement of the Payment

Systematization Promotion PT, comprised of Benefits

Management System
1) Organizational Reform

Payment Management Unit, the IT Planning Department,
and the System Development Unit. Other actions, as well,

On May 1, 2007, Taiyo Life implemented a sweeping

were taken in an effort to enhance insurance claim payment

organizational reform centered around Administrative

systems.

Service Units and other units that directly communicate
with customers.

■ Improvement of the effectiveness of internal audits

A. Established the position of Customer Service

of insurance claim & benefit payment management

Headquaters Manager, Director and Senior Executive

Based on the understanding that internal audits play an

Officer for providing cross-company oversight ofimportant role in ensuring proper insurance claim & benefit

Customer Service Administrative Units.

payment management, Taiyo Life will now implement

B. Established three independent departments fortheme-oriented audits, follow-up audits, and special audits

providing customer service when a policy is signed,

as necessary, in addition to internal audits carried out inafter a policy is enrolled, and when insurance claims

accordance with annual internal audit plans.

& benefits are paid.
C. Established the Payment Training Section within the

Voice of a Payment Advisor

Insurance Claims & Benefits Department to takecharge of internal training of matters related toinsurance claim & benefit payments, and assigned
Payment Advisors in branches throughout the country.
Both of these actions were taken to ensure thatsufficient and adequate explanations are provided
regarding insurance claim & benefit payments.
D. In April 2007, added two additional external members,a physician and an academic expert, to its Payment
Assessment Special Committee, which includes alawyer and an executive of a consumer-rights
organization as external members.
2) Increase staffing for the Benefits Payment Management
and other units
To reinforce the system for insurance claim & benefit
payment management, 70 staff were added to theInsurance Claims & Benefits Department, expanding toI’ve been appointed to be thePayment Advisor for the Hakodate
Branch and the Chief Advisor for
the Hokkaido Block. My roles are toprovide customers with detailed
information on claim and benefit
payments and to help in-house
Ms. Yumi Tashiro
sales representatives and customer
Senior Assistant Manager
service representatives understandHakodate Branch
payment operations. Those roles
may seem fairly typical for a job at
an insurance company, but I take them very seriously
given the shortcomings that have been experienced inthese areas. Moving ahead, I intend to do my best to
provide customers with information that is truly in theirinterest and backed by accurate knowledge of products
and claim assessment.

Toward Restoring Faith

Customer Service Department’s Underwriting Judging

In-house sales representatives are directly visiting all

The Results of the Examination of Insurance Claim & Benefit Payments and the Response in the Future

insurance products

213 from 143. Additionally, 13 staff were added to the6The Results of the Examination of Insurance Claim & Benefit Payments and the Response in the Future

Toward Restoring Faith

Toward Restoring Faith

7

Daido Life

1. Examination Results
Daido Life paid claims and benefits for a total of 645,156
policies over the five years covered by the examination forfiscal 2001-2005. This number included claims and benefits
for 614,524 individual insurance policies and 30,632 groupinsurance policies. The number and value of all additional
payments determined to be necessary are shown below.
Additional Payments(Number of payments, millions of yen)

NumberValue

1 Number of inadequate payments

1,918

331

2 Additional necessary payments clarified due
to claim guidance notifications to customers

8,692

3,120

10,610

3,452

Total

As of September 30, additional payments have been completed for 10,126 (95.4%) of the cases shown above.

2. Future Measures
Daido Life has reconfirmed its appreciation of the correct
payment of insurance claims & benefits as the core functionof life insurance operations and, as management’s number
one priority, will take the following measures to prevent
recurrences of the problems identified.
■ Reconstruction of customer-oriented

operation processes
1) Construction and maintenance of customer-oriented
payment management functions
A. Regarding claim submission recommendations, aclaim submission recommendation process will bebuilt into the payment administration flow.
B. Related functions will be systematized and rules andwork manuals will be prepared in an effort to create
systems capable of accurately paying insurance claims& benefits to customers.
C. Opportunities to present explanations to customers
will be increased not only when payments are
explained but also when policies are signed, customer
services are provided, and in all other types ofcustomer interaction. The content of explanations also
will be enhanced.
2) Enhancement of explanation arrangements whensoliciting insurance products
A. An Agreement summary will be provided to newpolicyholders to help them clearly understand theircoverage. Guidance for Submitting Claims will also
be provided and explanations will be given to help
avoid omissions of claims.
B. To enhance efforts to provide new policyholders withnecessary and uniform explanations, soliciting
materials will be revised to be more straightforward
and a rule requiring the reading aloud of particularly

T&D Life Group CSR Report 2007

important items to customers will be established.
C. To enhance explanation arrangements for soliciting
insurance products and presenting information on
payments, a DVD explaining payment matters was
prepared for in-house sales representatives. Trainings
were also held for branch administrative staff. Training
opportunities will continue to be increased.
3) Enhancement of information provision after policy
enrollment
A. Leaflets titled For Submission of Benefit Claims will
be bundled together with Policy Information
Notifications sent to customers annually in an effort toraise customer awareness.
B. Posting “Please Confirm Matters related to Insurance
Claim & Benefit Payments” on the Company’s
website will continue to publicize the fact that
customers can make future claims.
4) Enhancement of explanation arrangements applying to
the submission of claims
A. To explain claim procedures, Claim Guidance
Information that includes information on customer
coverage will be prepared, explanations to help
customers make all applicable claims will be
provided, and customers will be given Guidance for
Submitting Claims including detailed explanations of
payment examples.
B. A toll-free dedicated telephone line will be established
to receive questions about payments and efforts to
respond to customer claims and questions willcontinue.
5) Revision of insurance products
A. To simplify and make insurance coverage easier tounderstand, the number of products will be reduced,
first of all by eliminating outpatient riders, andcoverage in the form of uniform multiple benefit forsurgery covered by public health insurance will
gradually be introduced.
■ Improve the systems in the Insurance Claim& Benefit Payment Management Unit
1) Organizational strengthening
A. In March 2006, the Payment Supervision Office wasestablished to ensure the propriety of insurance claim& benefit payment assessments from objective view,and the Insurance Benefit Adjudication Council wasestablished to examine the propriety of payment
decisions and dispute resolutions from objective view.
B. In April 2007, the Insurance Claims & Benefits
Department was newly established as an individual
insurance payment unit to realize high-quality
payment assessments and services.
C. A check system involving multiple physicians for
medical examination was introduced to ensure theappropriateness of medical decisions, and the■ Promotion of the systematization of insurance

claim & benefit payment management work
1) A system in which data entry is repeated by a separate
person to prevent entry errors and omissions will be
introduced, and a system will be developed for entering
hospitalization starting and ending dates, surgery dates, andall other information item entered on physical examination
certificates.
2) Twenty-six employees to focus on system development
were added and, in October 2007, a Benefit Payment■ Updating of insurance claim & benefit

payment rules
Rules and work manuals will be improved and rules calling
for regular revisions will be newly established.
■ Building of internal management systems

1) Reports to the Representative Director or Board of
Directors on the status of insurance claim & benefit
payments will be enhanced from the perspective ofprotecting customer interests and efforts will be made tohelp ensure that management has a more accurate anddetailed understanding of the status of insurance claim &benefit payments.
2) Staffing of relevant departments will be enhanced tosignificantly strengthen administrative management based on
customer feedback, and systems will be upgraded to permit
centralized management of customer complaints fromemergence, to cause analysis, and improvement.
3) Staff experienced in insurance payment work will beassigned to internal audit units and department-level training
will be enhanced to improve audit quality. Additionally,
audit items concerning the need for additional payments andthe need for encouragement of the submission of claims will
be added for regular audit check.

Payment Management System Diagram

Payment request

Benefits Payment
Management Unit

Assessment result
notification

Important mattersregarding payment
assessments

Insurance Claims &Benefits Department

Request for explanationof assessment results

Payment Assessment Council
Assessment evaluation organ comprisedof representatives of related Company
units. Deliberation of matters requiringhigh-level decisions.

Group Insurance Department

Response/Explanation

Toward Restoring Faith

Assessment System Development PT composed of six staff
was established in the Benefits Payment Management Unit
to reinforce systems. Both of these actions were undertaken
to upgrade the payment management system.

The Results of the Examination of Insurance Claim & Benefit Payments and the Response in the Futureassessment system was reinforced by ensuring theappropriateness of remittance operation and taking
other measures, as well.
2) Increased the staffing of the Benefits Payment
Management Unit
A. Eighty-seven staff have been added to the individual
insurance Benefits Payment Management Unit sinceApril 2005, bringing the total staffing level up to 145
as of September 30, 2007, from 58.
3) Reinforced training systems
A. Long-term training plans for each job group will be
prepared and implemented, so that knowledge
necessary for payment management work can besystematically obtained.
B. Employees will be encouraged to obtain payment
assessment and related knowledge by preparing forand taking the Benefit Payment Specialist
Examination, an industry wide examination to begiven for the first time in fall 2007.

BranchCustomer

Reports on payment
status, etc.

Nonpayment complaint
Detailed explanation

Board of Directors
Executive Committee

Legal Affairs Unit
(Legal Affairs &Compliance Dept.)

Reports on service
provision, analyticalresults, improvement
measures, etc.

Payment Supervision Office

Insurance Benefit Adjudication Council

Re-examination ofassessment results

Dispute deliberation organ comprised ofexperts on consumer issues, attorneys,and other internal and external experts

Nonpayment complaint
reception/response desk

Disputes
regardingnonpayment

8

Toward Restoring Faith

Toward Restoring Faith

2) Improve staffing, including reviewers for payment

T&D Financial Life

assessment.

1. Examination Results3) Strengthen check functions including system in the

T&D Financial Life paid claims and benefits for a total of
589,853 policies over the five years covered by theexamination for fiscal 2001-2005. This number included

The Results of the Examination of Insurance Claim & Benefit Payments and the Response in the Future4) Prepare rules and work manuals, such as payment
assessment standards.

claims and benefits for 566,792 individual insurance policies

5) Enhance training for reviewers for payment assessment

and 23,061 group insurance policies. The number andand other Benefits Payment Management Unit

amount of all additional payments determined to benecessary are shown below.
Additional Payments

employees.
6) Establish the system for reporting payment process(Number of payments, millions of yen)

Number Amount

630

112

2 Additional necessary payments clarified due
to claim guidance notifications to customers

2,801

568

Total

3,431

681

1 Number of inadequate payments

matters to management and quickly resolving them.
7) Strengthen systems that involve the Payment Assessment
Council in making timely and appropriate payments.
■ Strengthen payment management system

As of October 5, additional payments have been completed for 3,308 (96.4%) of the cases shown above.

through the new establishment of the
Payment Supervision Department
1) Reassess individual insurance payments before they are
made and cases not meriting payments for customers.
2) Post examine all payments and cases not meriting■ Examination Summary

Regarding cases in which information was insufficient todetermine whether additional payments are necessary,
special teams performed examinations to obtain necessary
decision-making information.

2. Future Measures
The recent examination uncovered the following issues withregard to the payment management system.

payments for customers.
3) Examine the status of rules and work manuals, such as
payment assessment standards.
4) Regularly report issues with regard to payments, cases not
meriting payments for customers, and payment operations
to management.
■ Enhance operations from the customer’s

perspective

The first was a failure to adequately recognize, from the1) Distribute claim guidance notifications to customers andcustomer’s perspective, that the appropriate and timely

disclose straightforward information on the payment

payment of claims and benefits is one of the mostprocess through the Company’s website.

fundamental and important responsibilities of an insurance2) Simplify various claim forms for customers and physicalcompany. As a result, there was, for example, a reliance on

examination certificate forms for medical institutions.

the submission of claims from customers before processing3) Establish the Payment Supervision Committee, which

payments and inadequate appreciation of the customer view

includes attorneys, consumer affairs consultants, andthat all payments that could be made should be made.

representatives of the media as outside members. ThisThe second was the inadequate functioning of proper

committee examines circumstances related to insuranceinternal control. This resulted in insufficient reporting ofclaim & benefit payments, cases not meriting payments,

benefit payment management issues to management and theand analyzes payment complaints, and recommends

consequent inability to take appropriate management

improvements.

actions.
In addressing these issues, the resources of the entire
Company are being called upon to move improvements
forward as quickly as possible. Measures taken to prevent
recurrences of the same problems, and preventive measures
to be taken in the future, are summarized below.
■ Improve the benefit payment management

system1) Assign a dedicated department manager to head the
newly established Payment Service Department.

9

payment process.

T&D Life Group CSR Report 2007

T&D Life Group CSR

Our Brand of CSR
Message from the President of Taiyo Life

Taiyo Life Takes the Customer’s Perspective inProviding Insurance Protection for All Phases ofLife
Taiyo Life uses in-house female sales representatives and a consulting-style sales
approach to provide the household market, primarily housewives, with protectionoriented products responding to a wide variety of customer needs.
I believe, from operations that did not truly appreciate the customer’s perspective. To
fulfill the social role and responsibilities that life insurance companies have insupporting the lives of customers, and restore faith in the Company, we will strive toimplement systems that place the proper payment of insurance claims & benefits
before all other operations, and ensure that all of our employees and directors properly
understand our priorities as an insurance company.
In the future, we will carefully consider the input of all those supporting Taiyo Life andTaiyo Life Insurance Company
Representative Director and President

Katsuro Oishi

T&D Life Group CSR

The insurance claim & benefit payment issues that have recently come to light resulted,

work to be an insurance company that is accepted by, and meets the expectations of our
Our Brand of CSR

stakeholders.

Message from the President of Daido Life

Daido Life Will Redouble its Efforts to Practice
Quality Focused Management
Since its founding in 1902, Daido Life has, with “customer-oriented service and soundmanagement” as guiding principles, continuously endeavored to earn the unmitigatedtrust of its customers. I believe that, for an insurance company, CSR means first of all
fulfilling through primary business operations the roles and responsibilities society
expects to be met.
Daido Life focuses its management resources on its core business of selling systemproducts through relationships with partner organizations in the small and mediumsized enterprise (SME) market. We also work to provide customers with even better
products and services, practice strict compliance, and further enhance internalmanagement systems.

Daido Life Insurance Company

Redoubling our efforts in the pursuit of quality focused management based on these

Representative Director and President

endeavors, we are striving to be an insurance company worthy of the faith, andHaruo Kuramochi

responsive to the expectations, of customers, society, and all other stakeholders.

Message from the President of T&D Financial Life

Helping People to Realize Affluent Retirements
Within the T&D Life Group, T&D Financial Life is in charge of bank and other OTC
channels and offers individual variable annuity products suited for an aging society.
To establish a solid brand in the market for individual variable annuity products, we areworking on a daily basis to create unique products, develop information tools melding
paper-based and virtual media, and create other new insurance services.
Moving ahead, we aim to be an insurance company that helps customers realize
affluent retirements by offering new products that respond to customer needs;
providing appropriate, timely administrative services; and executing accurate andactive information provision.

T&D Financial Life Insurance Company
Representative Director and President

Muneo Takeuchi

10

T&D Life Group CSR

Basic CSR Concepts
The T&D Life Group Basic CSR
Concepts
Life insurance is purchased by people in all parts of society
and provides support for people’s lives and businesses, both

T&D Life Group
Corporate Philosophy

now and in the future. The T&D Life Group, in its corporate
philosophy, aims to benefit people and society by creating
value based on the “Try & Discover” philosophy and works
on it.

Aim to be a corporate group that benefits
both people and society by creating value
based on the “Try & Discover” motto.

T&D Life Group CSR

The basic concept of CSR in the Group is to contribute tosociety through the Group’s core life insurance operations,be an insurance group that sincerely responds to the needsof, and is trusted by, a diverse set of stakeholders, and growsustainably together with society.

T&D Life Group CSR Charter
Basic CSR Concepts

The T&D Life Group CSR Charter and the T&D Life Group
Compliance Code of Conduct were established in April
2006 to further advance CSR based on the Group’s
corporate philosophy and management vision, and comprise
the Group’s fundamental policies regarding CSR and legal
and other compliance.
To clarify its position on the environment, the T&D Life

T&D Life GroupManagement Vision
1. Aim to achieve the highest customer
satisfaction levels by offering the bestproducts and services.
2. Aim to increase the value of the Groupthrough growth and creativity in fields
where the Group’s strengths can be
exercised to their maximum.
3. Practice legal and other compliancebased on a high sense of ethics and meetbroad range of social responsibilities.

Group Environmental Policy was formulated and now
actively being pursued.

The T&D Life Group and its
Stakeholders

4. Develop human resources withboundless creativity and a solid ability to
get things done, and aim to be a dynamic
corporate group.

The T&D Life Group, as a member of society, coexists withall of its stakeholders.
In order to fulfill the public mission of a life insurance

Customers

business, meet its social responsibilities, and continue
growing as a group, it is critical that the Group maintain
good relationships through active communications with its
stakeholders.
As we go forward, we will work to earn even greater
stakeholder trust by continuously promoting CSR activities

Shareholders/
Investors

Offer of excellent
products and services

Marketing
Agencies
Partnership involving mutual
cooperation and prosperity

Providing appropriate
returns on investments

based on the T&D Life Group CSR Charter.
Highly efficient and transparent
corporate governanceRegional
Communities/
Society

Rigorous compliance
Proactive communication

Undertaking activities as acommunity member that
contributes to society

Ensuring fairtransactions

Government
Entities
Playing a publicrole in society

Employees
Providing workplaces
that make work meaningful
and pleasurable

Global Environment
Protecting the living environment

11 T&D Life Group CSR Report 2007

Transactional
Partners

T&D Life Group CSR Charter

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

T&D Life Group CSR

The T&D Life Group is firmly committed to fulfilling the public mission of life
insurance and other businesses and to undertaking its corporate social
responsibilities based on its management philosophy and by achieving
sustainable growth along with society.

2 Strict Complianceact with integrity.
• 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 civil society.

3 Respect for Human Rights

Basic CSR Concepts• The T&D Life Group will strictly observe laws, regulations and rules, and• The T&D Life Group will respect human rights, and make efforts toenlighten all its employees on human rights.
• The T&D Life Group will respect the individuality of all its employees,
ensure a safe and rewarding work environment, and develop its humanresources.
• The T&D Life Group will respect privacy, and will strictly control andprotect personal information.

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

5 Contributions to Regions and Societies
The T&D Life Group will implement social-action programs as a good
corporate citizen, and will make contributions to the sound development ofregional communities and society.

6 Global Environmental Protection
The T&D Life Group will carry out its activities with a full awareness of theimportance of environmental concerns, and with sufficient consideration
given to global environmental protection.

12

T&D Life Group CSR

Corporate Governance

T&D Life Group CSR

Corporate Governance
Basic Idea of Corporate Governance■ Board of Directors

The basic idea of corporate governance at the T&D LifeThe T&D Holdings Board of Directors makes decisions onGroup are summed up with the words, “pursue an efficientimportant T&D Holdings operations as well as on theand transparent business management structure capable ofGroup’s business strategies, distributions of management

implementing flexible and unifying group management.”

resources, and other matters as a holding company. It also

T&D Holdings determines the Group’s business strategies,

oversees the activities of Directors and Executive Officers.

appropriately distributes management resources, and sets

The Board of Directors is composed of nine members, four

capital policy. And it also accurately identifies business risksof whom were also Executive Officers as of June 27, 2007,

faced by the three life insurance companies and other direct

including one external director who is a lawyer and thesubsidiaries (Note), thoroughly manages revenues and riskspresidents of the Group’s three life insurance companies. In

for the entire Group, and constructs Group management

principle, the Board of Directors holds regular monthly

systems. On the other hand, the direct subsidiaries, which

meetings.

have their own business strategies, develop marketing

In fiscal 2006, the Board of Directors met a total of 24

strategies and pursue operations that apply their own

times, including regular and ad hoc meetings.

strengths in order to exercise to the fullest extent their
independence and uniqueness, and, thereby, increase the■ Board of Corporate Auditors

value of the Group.

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

On Strengthening the Governance
SystemDirectors and Executive Committee meetings. The Board of

In June 2006, T&D Holdings and the Group’s three life

2007, including two external auditors, one of whom is ainsurance companies adopted the Executive Officer Systemlawyer. The Board of Corporate Auditors receives reports

and, by clearly identifying the roles of Directors andfrom individual auditors on important audit-related matters,

Executive Officers, strengthened the functions of the Boardand discusses and makes decisions on these matters. In

of Directors. Furthermore, the Group Management

principle, the Board of Corporate Auditors meets once a

Committee, to which the Presidents of three life insurance

month. In fiscal 2006 it came together a total of 13 times,

companies will participate, was established as an organ that

including both regular and ad hoc meetings.

deliberates new business and other groupwide strategies.

(Note) The Group’s three life insurance companies are Taiyo Life, Daido Life,and T&D Financial Life.
The term “direct subsidiary” refers to these three life insurancecompanies, T&D Asset Management, and Pet and Family Smallamount Short-term Insurance.

Corporate Governance Structure Chart

Corporate Auditors consists of four members as of June 27,

T&D Life Group engages in efficient and transparent group business operations by clarifying the responsibilities
and authorities of T&D Holdings and the three life insurance companies and by putting the coordination system
for the entire Group in place.

T&D Holdings, Inc.

Shareholders’ Meeting

Corporate Auditors
Board of Corporate Auditors

Board of Directors
Group Compliance Committee

Auditors’ Office

President

Executive Committee

Group Risk Control Committee

Group Management
Committee

Group IT, Administration
Strategy Committee

Group Investment Committee

Group Planning Department

Group Finance &Accounting Department• Business planning and• Implementation of financial

new business development• Subsidiary management and guidance• IR

strategies and capital policies• Budget preparationand management

Taiyo Life

Public Relations Department

General Affairs Department

Risk Control Department

Business Auditing Department• Public relations• General affairs,• Risk control and• Internal audit• CSR

Daido Life

corporate stock related
general affairs, humanresources, andsecretarial services

T&D Financial LifePet and Family Small-amount Short-term Insurance

13 T&D Life Group CSR Report 2007

management• Compliance• Legal affairs

T&D Asset Management

Other Group Companies

Group CSR Promotion Structure

Within the T&D Life Group, T&D Holdings and the direct

In April 2005, the CSR Promotion Team was establishedsubsidiaries have established internal audit units, which

within the T&D Holdings Public Relations Department andperform internal audits to effectively achieve management

staff members in charge of CSR were appointed in the threeobjectives by examining and assessing the appropriatenesslife insurance companies, creating a system to coordinate

and effectiveness of internal management functions andwithin the Group.

legal and other compliance, and to contribute to the

The CSR Promotion Team works with the staff members in

improvements.

charge of CSR in the three life insurance companies toAdditionally, T&D Holdings, by monitoring theadvance CSR activities, prepare the CSR report, post

performance of internal audits by direct subsidiaries, andinformation on websites and other channels, offer e-learning

other means, identifies the internal management status of the

training, hold internal seminars, provide necessary

entire Group, and provide guidance and advice as necessary

information to the Group employees and directors via in-to strengthen the Group’s internal audit systems.

house magazines, intranets, and other channels, and perform
other activities, as well. It also responds to thequestionnaires from domestic and overseas Socially

T&D Life Group CSRGroup Internal Audit System

Responsible Investment evaluation organizations, pursues: Auditcommunications with NPOs/NGOs and other stakeholders,
and reports to the Executive Committee on CSR-related

T&D Holdings, Inc.

matters as necessary.

Business Auditing Department
Group CSR Promotion System Chart
Business Execution Division

T&D Holdings, Inc.

Monitoring
Guidance & Counseling

Director in charge of public relations

Corporate GovernanceGroup Internal Audit System Chart

CSR Promotion Team within the Public Relations Department
Five Direct Subsidiaries

Taiyo Life

Daido Life

T&D
Financial
Life

Pet and Family
T&D
Small-amount
Asset
Short-termManagement
Insurance

Business Auditing Departments

Business Execution Divisions

Taiyo Life

Daido Life

T&D Financial Life

Public Relations Dept.
Staff in charge of CSR

Planning Department
Staff in charge of CSR

Planning Department
Staff in charge of CSR

Audit

Other Group Companies

Other Group Companies

Shareholders’ Meeting
T&D Holdings held its third Annual General Shareholders’

were voted on afterward and the meeting, which lasted 121

Meeting at 10 a.m. on Wednesday, June 27, 2007. The

minutes, was brought to a close.

Company’s President chaired the meeting in which reporting
items were reported on and resolutions were voted on.
IR elements were added in an effort to makethe content of the shareholders’ meeting
accessible to individual investors, andmeasures like using the meeting venue’s
large-size electronic display to add charts andillustrations to explanations were employed tohelp investors understand the information
presented. Twelve of the 286 attendees asked
questions and expressed opinions in active
question and answer sessions. Resolutions

14

Corporate Governance

T&D Life Group CSR

T&D Life Group CSR

The Internal Control System

The Internal Control Reporting System

In light of the social/public nature of the Group’s core life

With the implementation of the revised Securities andinsurance operations, the T&D Life Group believes it is

Exchange Law, now titled the “Financial Instruments andnecessary to properly control the execution of its business

Exchange Law,” the Internal Control Reporting System will

operations and minimize the management impact of

be introduced beginning in fiscal 2008. That system will

unforeseeable developments arising out of Grouprequire listed companies to construct internal controls

operations. Based on this idea, T&D Holdings and the direct

necessary for preparing financial statements including

subsidiaries have decided, through Board resolutions, toannual financial report according to proper procedures, andestablish the structure as internal control system stipulated

calls on management to not only evaluate and report on thein Article 362, Paragraph 4, Item 6 of the Company Law.

effectiveness of those controls but also have the

The summary is provided below.

reasonableness of their evaluation audited by a Certified
Public Accountant or other outside auditor.
In constructing and evaluating internal controls, it will benecessary to document operational processes regarding

1. Structure that Ensures Compliance with theRelevant Laws and the Articles of Incorporationin Business Execution by Our Directors,
Executive Officers and Employees

financial reporting and to identify the risks inherent in• Establish a T&D Life Group CSR Charter and adocumentation of business processes and the evaluation ofindividual business processes impacting financial reporting
and the control activities that reduce those risks. The

T&D Life Group Compliance Code of Conduct topromote compliance.

risk control activities must take place throughout the year.

2. Structure that Ensures Efficient Business
Execution by Directors and Executive Officers

must be corrected by the end of the fiscal year, and listed• Hold a Board of Directors meeting every month,and ad hoc basis when necessary.
• Adopt an executive officer system to clearly
separate roles of super vision and businessexecution.

Furthermore, any deficiencies uncovered by evaluations
companies must efficiently move forward with actions thatcan be relied upon.
The T&D Life Group established the Internal Control
Special Committee in February 2007 as a groupwide projectfocused on implementation of an internal control reporting

3. Structure to Maintain and Manage Information
Related to Business Execution by Directors andExecutive Officers•

system. The committee, which falls under the responsibilityof the President of T&D Holdings, consists of five

The information related to the business execution
by Directors and Executive Officers shall beproperly maintained and managed for aprescribed period by the responsible department
as stipulated in the Document Management
Rules.

subcommittees, the Companywide Control Expert

4. Rules Concerning the Control of Loss Risks andOther Structures

insurance companies are laying the groundwork for effective• Develop Group Risk Management Policies to set

the basic concepts for the risk management andestablish Rules on the Group’s Crisis
Management to set the basic policies concerning
the response to crisis in order to improve risk
management structure and structure to deal withcrisis based on the above policies and rules.

5. Structure to Ensure Appropriate Business
Operations by the Corporate Group• T&D Holdings and the direct subsidiaries shallconclude a Business Management Agreement inorder to maximize the corporate value of theGroup under the premise of policyholders’protection, by ensuring the health and compliancesystem of the direct subsidiaries.

6. Structure to Ensure Effective Auditing by the
Corporate Auditors•

The corporate auditors shall take part in important
meetings such as the Board of Directors, andreceive operational reports from Directors andExecutive Officers.

15 T&D Life Group CSR Report 2007

Subcommittee, Documentation Expert Subcommittee,
Accounting Expert Subcommittee, IT Controls Expert
Committee, and Evaluation Expert Subcommittee, in which
representatives from T&D Holdings and the three lifeand efficient internal controls from the perspective of theentire Group.
The requirement to introduce an internal control reporting
system is a response to society’s demand for accurate
financial statements, which arose in the wake of the
discovery of false entries in the annual financial reports oflisted companies, but the T&D Life Group believes it is notenough to passively comply with the new law. Rather, it
intends to use the results of the new reporting system, which
will make various operations within the Group visible, instandardizing operations and securing managementtransparency. Based on the belief that this will increase its
value, the T&D Life Group is actively working to build andimplement internal controls.

Risk Management
Basic Risk Management Concepts

Types of Risk

The T&D Life Group has formulated its Group Risk

The T&D Life Group defines its major management risks as

Management Policies, which set forth the Group’s basic risk

shown below. Management policies have been establishedmanagement concepts. Among the Policies, the Group, infor each of these risks, and efforts are made to prevent theirlight of the social/public nature of the life insurance

realization and keep them below certain levels.

business, positions risk management as a key management
priority in order to secure sound and appropriate
management, and each Group company takes responsibility

Insurance
Underwriting Risk

Legal Risk

Investment Risk

Labor and Personnel Risk

Liquidity Risk

Hazard Risk

Operational Risk

Rumor Risk

System Risk

Affiliate Risk

operations.

T&D Life Group CSR

for implementing appropriate risk management for its own

Risk Management System
T&D Holdings has established the Group Risk Control
Committee under its Executive Committee to control andmanage risk within the Group. The Group Risk Control
Committee receives regular and ad hoc reports on risk
conditions, assessed according to uniform risk management

Risk Management

indicators, from the three life insurance companies and otherGroup members and uses this information to identify andmanage the various types of risks faced by the Group
companies. The Committee also reports to the Board of
Directors on the risks and provides guidance and advice tothe three life insurance companies and other Group
members, as necessary, as it works to enhance risk
management for the entire Group.

T&D Holdings

Executive Committee

Corporate Auditors

System risk
The risk of losses resulting from a computer system failure, error,or other system problem, or the risk of losses resulting from theunauthorized use of a computer.

Board of Corporate Auditors
Group Risk Control Committee

Legal risk
The risk of losses resulting from failure to comply with laws, etc.

Risk Control Department
Deliberation andReporting

Guidance andAdviceTaiyo Life

T&D Asset Management

Daido LifePet and Family Small-amount
Short-term Insurance

T&D Financial Life

Other Group Companies

Insurance underwriting risk
The risk of losses resulting from changes, in economic conditions,the occurrence rate of insurable accidents, etc., that are against
forecasts made when insurance premium rates were set.
Operational risk
The risk of losses resulting from the negligent failure of employees
and directors to properly perform their duties, or from accidents,
improprieties, information leaks, etc.

Group Risk Management Framework

Board of Directors

Definitions

Internal
Auditing

Labor and personnel risk
The risk of losses resulting from the emergence of employment
problems, or labor management, personnel loss, human rights, orother labor or personnel problems.
Hazard risk
The risk of losses resulting from the failure to establish preventive
measures against major disasters, or emergency response systemin the case of the occurrence.

Crisis Response
The T&D Life Group has formulated its Rules on thebuild systems and others necessary for the above. In fiscal

Group’s Crisis Management, which address the basic matters

2006, a system for confirming the status of Group employees

related to the Group’s response to crisis situations. Regarding

and directors in the wake of a disaster was introduced,

large scale natural disasters, and other such events, thesegroupwide training was implemented to address the possible

rules place the lives and safety of employees and directors

occurrence

above all else, recognize, based on a consideration of support

earthquake below Tokyo, andto be rendered to disaster stricken areas and other

other actions, as well, were

contributions to society, that continuing or rapidly restoring

taken to help ensure theinsurance claim & benefit payment operations is aneffectiveness of the Group’s

important social mission, and set forth as basic policies tocrisis response systems.

of

a

major

Group’s crisis response training

Pamphlet describing
methods for confirming
the status of employees
and directors in thewake of a major disaster16

Financial Summary

Status of Operations
Performance for the Fiscal Year Ended March 2007
Among major performance figures, the Group’s three life insurance

previous year primarily because of the increase of interest andcompanies recorded a total of 6,634.7 billion yen in new policies,

dividend income.

down 9% from the previous year, 5,362.5 billion yen in surrendered

Dividends paid to policyholders reached 56.7 billion yen, up 6.2%or lapsed policies, up 5.1% from the previous year, and, as a result,from the previous year. Corporate and residence taxes amounted to

59,899.9 billion yen in existing policies in force, down 0.6% from50.6 billion yen, up 65.1% from the previous year.

the end of the previous fiscal year.

Among other performance indicators, core profit, an indicator of

On the consolidated income statement, the three life insurance

performance in mainstay life insurance business for a prescribedcompanies recorded 1,811.5 billion yen in income from insurance

period, came to 173.3 billion yen for the three life insurance

premiums, down 4.8% from the previous year, and 1,630.6 billion

companies combined, up 36.2% from the previous year. The negative

yen in insurance claim & benefit payments, down 6.6% from the

spread for the three life insurance companies taken together came toprevious year. Net income came to 38.7 billion, up 9.1% from the20.3 billion yen, down 51.9 billion yen from the previous year.

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

60.2(Trillions of yen)

Financial Summary

60

59.8

59

350

58

300
As of March 31, As of March 31, As of March 31,
2005
2006
2007

(Hundred millions of yen)

20,000 17,989

19,023

18,115371

Mar. 2005

355

Mar. 2006

Mar. 2007

Core Profit (sum of three life insurance companies)(Hundred millions of yen)

2,000

15,0001,500

10,0001,000
Mar. 2005

387(Hundred millions of yen)

400

59.5

Income from Insurance Premiums (consolidated)

Status of Operations

Net Income (consolidated)

Mar. 2006

Mar. 2007

1,733
1,298

1,272

Mar. 2005

Mar. 2006

Mar. 2007(Note) “Existing policies in force” is a total of individual insurance and individual annuities.

Basic Profit Distribution Policy

Solvency Margin Ratio

T&D Holdings, while paying attention to keep its own

The solvency margin ratio (Note) is one of the indicators

operations and those of the Group companies in soundregulatory authorities use to gauge the soundness of an

condition, pursues a basic policy of maintaining stable profit

insurance company. The solvency margin ratios for Taiyo

distributions in an effort to increase shareholder value, after

Life, Daido Life, and T&D Financial Life stood atsecuring retained earnings required by the Group. Cash

1,100.4%, 1,320.6%, and 1,189.7%, respectively, as ofdividends for the fiscal year ended March 2007 were set atMarch 31, 2007, reflecting adequate solvency for all three

65 yen per share, 10 yen higher than for the previous year,

companies.

and came to a total of 16 billion yen.
Annual Cash Dividend per Share

Solvency Margin Ratio
As of March 31, As of March 31, As of March 31,
2005
2006
2007

(Yen)

80

55
60

65

45

Taiyo Life

865.7%

1,045.2%

1,100.4%

Daido Life

1,037.2%

1,254.4%

1,320.6%

721.7%

1,911.8%

1,189.7%

40

T&D Financial Life

20

(Note) The solvency margin ratio is an indicator used by regulatory authorities to judge
whether an insurance company has insurance claim payment ability sufficient foraddressing unforeseen risks. A solvency margin ratio of 200% or higher means that

Mar. 2005

17 T&D Life Group CSR Report 2007

Mar. 2006

Mar. 2007

the insurance company has met one of the criteria for sound management.

New Business Strategies

Ratings

The T&D Life Group’s core business is life insurance, but it

Three life insurance companies of the T&D Life Group have

has recently embarked on new business strategies for two

obtained the ratings regarding the solvency to pay benefits.

companies, Pet and Family Small-amount Short-term
As of the end of November 2007

Insurance Company and T&D Asset Management Co., Ltd.,
which were respectively established in January and Marchof 2007 as direct subsidiaries of T&D Holdings.

■ Entry into the small-amount, short-term

Rating Agency

T&D
Taiyo Life Daido Life Financial
LifeStandard & Poor’s
(S&P)

A

A

Japan Credit Rating Agency
(JCR)

A+

AA-

A

Rating and Investment
Information
(R&I)

A+

A+

A+

insurance businessWith the numbers of pet owners
growing and pets coming to betreated as family members, the pet
insurance business is being
viewed as one with strong growthpotential. This business will be
mind for working with theAA-

Fitch Ratings

Group’s three life insurancecompanies.

Pet insurance brochure■ Asset management business expansion

Moody’s Investors Service(Moody’s)

A1

Financial Summary

developed with possibilities in

asset management business has in recent years been

Rating definition

experiencing a rapid market expansion, and the Group isStandard & Poor’s (S&P)

working to develop it into a second core business domain,
after life insurance.

Insurer Financial Strength Ratings
Rating A:An insurer rated “A” has strong financial security characteristics, but
is somewhat more likely to be affected by adverse businessconditions than are insurers with higher ratings

Japan Credit Rating Agency, Ltd. (JCR)

Voice of an Analyst
I have rated the T&D Life Group, which
has strong business and capitalfoundations and solid profitability, highly
for its soundness, and, after considering
their strategic positions within the Group,
I have also issued relatively high ratings
for member companies.
Daido Life is using its business basebacked by competitiveness in the small Ms. Keiko Mizuguchi
and medium-sized enterprise channel to General Manager
generate stable revenues and maintain Rating Planning Department
sufficient solvency to pay insurance Japan Credit Rating Agency
claims. Taiyo Life is working to bring about
a solid shift 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 individual
variable annuity business, which is based on its revenue/riskmanagement systems, and concentrating on developing sales
through bank OTC channel. Against the backdrop of a changing
regulatory environment, I will be watching to see the extent towhich business development applying the uniquecharacteristics of individual Group members will make theGroup as a whole more valuable with due consideration for thesizes of the economic bases of the Group members over the
medium-to-long term, from the customer’s perspective.

Long-Term Rating
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.

Status of Operations

With consumers shifting from savings to investment, theRating and Investment Information, Inc. (R&I)
Insurance Claims Paying Ability Ratings
Rating A:A high degree of capacity for payment of insurance claims andexcellence in a few key factors of evaluation

Fitch Ratings, Ltd.
Insurer Financial Strength Ratings
Rating AA:Insurance claim paying capability is extremely high, the probabilityof an interruption or termination of payments is extremely low, andthe 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 in some point in the future.
Exclusion of liability: The above ratings represent the opinions of credit rating agencies anddo 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, the ratings maychange 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 andare rated as shown in the table above.

18

Financial Summary(Hundred millions of yen)Disclosing Embedded Value (Potential
Value of the Corporation): EV

of
T&D Life Group’s As of March 31, As of March 31, As of March 31, Amount
Increase
2005
2006
2007
Total EV
(Decrease)

The T&D Life Group places great emphasis on embedded

Embedded Value

value and intends to increase it as a way to enhance its

11,98319,92821,333

1,405

Adjusted Book Value

6,507

12,325

12,988

663

Existing Business Value

5,476

7,602

8,344

742

EV of New Business

612

651

705

54

corporate value.
EV is an existing business value calculated as the sum ofadjusted book value, which is value attributable toshareholders and determined based on balance sheet figures,and existing policies in force. In Europe and Canada, EV is(Breakdown)

used as one of the indicators for assessing the corporate

Taiyo Life

value of a stock life insurance company.

Embedded Value

Under present statutory accounting practices for life
insurance companies, there is a time lag between a newpolicy sale and the recognition of accounting profits. Inof
As of March 31, As of March 31, As of March 31, Amount
Increase
2005
2006
2007
(Decrease)

3,376

7,178

7,855

676

Adjusted Book Value

2,710

5,148

5,548

399

Existing Business Value

666

2,029

2,307

277

EV of New Business

332

315

283

▲ 31

Financial Summary

contrast, it is thought that EV, because it recognizes future
profit contributions when a new policy is sold, reinforces the

Daido Lifefinancial information produced through statutory

Embedded Value

accounting.
For the Group’s three life insurance companies, EV as of theend of March 2007 came to a total of 2,133.3 billion yen,
140.5 billion yen greater than in the previous year. Factors
contributing to this increase include adjusted book value
boosted by the increase of net income and internal reserves
as quasi-equity liabilities, and existing business value driven
up by higher investment yields and an increase of new

Status of Operations

business.
In performing EV calculations, calculation standards andmethods for setting key premises are standardized for the
T&D Life Group.
Embedded Value(Hundred millions of yen)

19,92821,33320,00011,983of
As of March 31, As of March 31, As of March 31, Amount
Increase
2006
2007
2005
(Decrease)

8,255

12,056

12,875819

Adjusted Book Value

3,577

6,671

7,019

348

Existing Business Value

4,677

5,384

5,856

471

EV of New Business

298

360

454

93

of
March 31, As of March 31, As of March 31, Amount
Increase
T&D Financial Life As of 2005
2006
2007
(Decrease)

351

693

602

▲ 90

Adjusted Book Value

218

505

420

▲ 84

Existing Business Value

132

188

181

▲6

EV of New Business

▲ 18

▲ 24

▲ 32

▲7

Embedded Value(Note) Value is calculated according to the following formula.

Adjusted book value = total net assets (excluding valuation and translation
adjustments) + quasi-equity liabilities (reserve forprice fluctuations, contingency reserve, andunallotted portion of reserve for policyholder
dividends) + general reserve for possible loan losses(after tax) + net unrealized gains (losses) on
securities (after tax, excluding yen denominatedbonds, including derivative transactions) + net
unrealized gains (losses) on real estate (after tax) –deferred tax assets for quasi-equity liabilities.

10,000The existing business value = present value of future after tax profit on
existing business in force – present value of
cost of capital.

0

As of March 31, As of March 31, As of March 31,
2005
2006
2007

To promote better understanding of the T&D Life Group,
EEV, based on European embedded value principles, wasadopted to replace the EV approach used in fiscal year
ended March 31, 2007.
EEV figures will continue to be presented in and after fiscal
year ended in March 2008.

Cost of capital is the spread between the investment yield and discount rateapplied to the amounts of capital and surplus that will be required to maintainthe assumed solvency margin ratio.
The EV of new business: new business value for each fiscal year included in
the total EV including new business from conversion* Milliman Inc., a third-party actuary firm, was requested to examine the calculation method,
setting of premises, consistency of the methodologies of the three T&D Life Group’s
insurance companies, and the reasonableness of the calculation results, and to issue an
opinion on the T&D Life Group's EV calculation.
For details on this opinion, please refer to the following website: http://www.tdholdings.co.jp/e/* The calculating EV involves certain assumptions regarding future projections that are
subject to risks and uncertainties. It should be noted that actual future results mightmaterially differ from the assumptions used in the EV calculations. Moreover, although EV
is one indicator of the corporate value of a stock life insurance company, the actual market

For more detailed information, please refer to the November
15, 2007 news release.

http://www.td-holdings.co.jp/news/pdf/2007/h_e20071115_3.pdf

19 T&D Life Group CSR Report 2007

value may significantly diverge from the EV, and investors are advised to be cautious.

CSR Initiatives

T&D Life Group CSR Initiatives
Main Activities
The results of the T&D Life Group’s principal CSR activities are organized by corporate governance and Group CSR Charter
item below.

Principal Activities

Pages

Corporate Governance• Introduction of executive officer systems by T&D Holdings and theGroup’s three life insurance companies• Establishment of the Group Management Committee• Establishment of the Internal Control Special Committee• Efforts to ensure a thorough understanding of the T&D Life GroupCSR Charter, etc.

13 -15

Offer of Better Products andServices• Enhancement of insurance claim & benefit payment management
systems and other steps taken by the Group’s three life insurancecompanies in response to the results of the insurance claim &benefit payment examination• Advancement of initiatives aimed at establishing management
emphasizing customer satisfaction

5-9
21- 30• Promotion of compliance programs• Introduction of the T&D Life Group Helpline in outside seminars

31- 32• Promotion of initiatives aimed at enhancing employee motivation• Earning of certifications under the Law for Measures to Support theDevelopment of the Next Generation by Taiyo Life, Daido Life, andT&D Financial Life
• Introduction of Volunteer Time Off System by Taiyo Life andAnniversary Holiday System by Daido Life
• Obtaining of ISO27001 information security management system
certification by the T&D Information Systems

33 - 36• Promotion of timely and appropriate information disclosure• Complete revamping of the T&D Holdings website

37- 38Contributions to Regions andSocieties• Group participation in blood donation activities• Special support provided by Daido Life to the Sixth National Sports
Games for the Disabled (Nojigiku Hyogo Games)

39 - 40

Global Environment
Protection• Promoting the activities of “Forest of Taiyo Life”• Consolidation of Group company’s headquarters functions in anenergy-efficient building• Support for the activities of the environmental NPO group,
Associates of the Earth• Taiyo Life’s signing on to the Principles for Responsible Investment• Establishment of environmental objectives and commencement ofenvironmental initiatives in the second half of 2007

41- 42

Strict Compliance

Respect for Human Rights

Communication

T&D Life Group CSR Initiatives

Activity Area

CSR Initiatives

Activities by Area

SRI (Socially Responsible Investment)
As of September 2007, 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 selectedby 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.

20

Offering of Better Products and Services

Activities Aimed at Increasing
Customer Satisfaction
Marketing Activities of the Group’s
Three Life Insurance Companies
With a falling birthrate, aging of the population, and otherAmid such conditions, the T&D Life Group, which ischanges in generational structure, Japan’s life insurance

primarily a provider of life insurance, has aimed to achieve

industry is seeing falling demand for large death protection

higher levels of customer satisfaction by putting forth everfor head of household and growing demand for individual

better products and services.

annuities, medical insurance, and other third-sector

The Group’s three life insurance companies bringinsurance useful in preparing for old age. Furthermore, with

distinctiveness and expertise to the household, small andforecasts calling for the working-age population to decline

medium-sized enterprise, and individual variable annuity

and the elderly population to rise, the national government’s

markets, and, via unique sales channels, offer products andSocial Security outlays are on the rise and the need forservices meeting a broad array of customer needs.

private old-age protection is rising.

Taiyo Life

Additionally, customer service staff regularly visitscustomers to provide information on new products andSupporting families by providing security in allservices, perform services related to various procedures, andaspects of life

hear customer desires and other feedback.

Taiyo Life offers medical, nursing care, death protection,

Taiyo Life offers products and services through such detail-and other protection-oriented products to the householdoriented, face-to-face consultation-style sales efforts, andmarket through its in-house sales representative channel.

works to enhance its services, so that it can be a lifelong

Housewives make up the bulk of policyholders, andpartner for its customers.

approximately 70% of new individual insurance andindividual annuity policyholders are women.

Voice of an In-house Sales Representative

Offering of Better Products and Services

Expanding sales of protection-oriented products

In the past, endowment insurance and other savings-oriented
products that were easy for housewives to purchase wereleading products, and the focus of sales efforts. Now,
however, it is expected that the medical, nursing care, andother insurance fields targeting middle-aged and elderly
customers will expand as the population ages, and Taiyo
Life is working to expand sales of protection-oriented
products – medical, nursing care, and death protection – that

Activities Aimed at Increasing Customer Satisfaction

meet customer needs and generate relatively high revenues.
In selling protection-oriented products, Taiyo Life provides
thorough training and guidance to in-house sales
representatives and other employees to ensure compliance

I pursue sales activities that take thecustomer’s perspective. I am ready torespond empathetically to customer’s
concerns and promptly act on them. I also
place great value on the experience at thesite, such as input of those who are
actually providing, or receiving, nursingcare.
Ms. Yukiko Ota
In my 26 years at Taiyo Life, I have
Matsumoto Branch
constantly benefited from the help ofGroup Manager
others. My achievements here would not
Taiyo Life
have been possible without the advice andwords of thanks of countless customers.
This feedback is still a source of great encouragement. In the
future, I will continue to be the best adviser I can, under mypersonal motto of putting my customers first.

with relevant laws and the straightforward, proper provisionof product explanations and services.
Enhancement of the in-house sales representative

Taiyo Life Business Modelchannel and service systems

Households (mainly middle aged and elderly people, especially housewives)

Taiyo Life sells life insurance products primarily through its

Abundant customer base: Approx. 4.5 million

in-house sales representative channel. In-house sales
representatives regularly visit customers, hear their needs,

Direct home visits

and make recommendations on the best insurance products

Mid-sized death protection, medical, nursing care,and other protection-oriented products

to meet those needs. They also provide customers withadvice on changing their coverage to address new sets ofneeds that arise with important life events like marriage,

Serving mainly major metropolitan
areas and major regional cities
In-house sales representatives: Approx. 8,000

childbirth, the entrance of children into school, andretirement.

21 T&D Life Group CSR Report 2007

Taiyo Life

Daido Life

T&D Financial Life

Suppor ting the SMEs, the backbone of the

Supporting security for life after retirement throughJapanese economy

individual variable annuities

Daido Life focuses its management resources on sales of

T&D Financial Life, under its management policies ofindividual term life insurance through partners in the core

“expanding financial institution sales channels to create abusiness, small and medium-sized enterprise market, andnew growth stage” and “maintaining extremely solidoffers optimal protection against various risks faced by SMEs.

operations by increasing profitability,” is moving forwardwith sales of individual variable annuities through financial

Selling optimal products for the protection of

institutions’ OTC sales channels. For the fiscal year ended

companies

March 2007, individual variable annuities accounted for

Daido Life’s sales activities focus mainly on SMEs. Businessnearly 100% of new policy sales. As of the end of March

policies (Note 1), therefore, account for 89.2% of new policy sales

2007, individual variable annuities made up 24.6% offor death protection, while household policies make up theexisting policies in force for individual insurance andremaining 10.8% as of the fiscal year ended March 2007.

individual annuities, a figure significantly greater than the

Daido Life sells insurance through two primary channels – the

17.2% recorded as of the end of fiscal 2006.
Meeting the needs of customers and financial

insurance agents. Additionally, to cover the greatest risks faced

institution agentsby company management, Daido Life has, together with

The market for individual variable annuities has grown at anorganizations including companies, tax accountants, or Certified

extremely high pace since it became possible to sell these

Public Accountants as their members, built a system capable ofproducts through banks in October 2002. With personaloffering SME customers comprehensive welfare systems. (Note 2)

financial assets shifting from savings to investment, and the

Daido Life has also devoted significant resources to developing

combined effects of an aging population and rising needs forand selling individual term life insurance that provides

retirement security, the market continues to grow. Indeed, as

extensive protection for a reasonable premium, and is anof the end of March 2007, existing variable annuity policies

optimal product for protecting companies. This productin force for its market had reached 14.4 trillion yen in total.

accounts for 90.1% of existing policies in force as of the end of

T&D Financial Life continues to actively develop new

March 2007. Daido Life’s individual term life insurance

products, build highly efficient, small organizations ofpolicies account for the greatest share of existing in-force

outstanding in-house sales representatives, and enhance thepolicies in their market, which was 22.1% as of the end of

quality of wholesalers who are staff responsible forMarch 2006.

overseeing agents and support desk operators.

(Note 1) “Business policies” refers to the total of individual insurance policies
including individual annuities sold as group contract, and groupinsurance.
(Note 2) In 1971, Daido Life began applying Major Comprehensive Protection
System for Company Managers of Zenkoku Hojinkai Sorengo (NFCTA:
National Federation of Corporate Tax-Payers Associations), and Nozei
Kyokai Rengokai (TPA: Federation of Tax Payment Associations), andin 1976, Company Protection System of TKC National Federation tosell 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 taxationand the ongoing prosperity of client companies.

Daido Life Business Model

Going forward, T&D Financial Life will work to expand
sales further by introducing in a timely manner simple,
straightforward, high value-added products that meet theneeds of customers and financial institution agents, andstrengthening partnerships through detailed support for
financial institution agents.

T&D Financial Life Business Model

SME policyholders: Approx. 390,000

Customer

Individual term life insurance

Individual variable annuity

Partnerships with SME-related organizations
Company organizations

Tax accountant and CPA organization(NFCTA, TPA, etc.)(TKC National Federations, etc.)

In-house sales representative: Approx. 4,700
Non-life insurance agencies: Approx. 3,000

Tax accounting and Certified Public
Accounting firms: Approx. 11,000

Sales through banks andsecurities companies
Banks including credit associations: 52
Securities companies: 3
Other: 1

Activities Aimed at Increasing Customer Satisfaction

which is comprised mainly of tax accountants and non-life

Offering of Better Products and Services

in-house sales representative channel and the agent channel,

As of the end of September 2007

Daido Life

T&D Financial Life

22

Offering of Better Products and Services

Introduction of Intent Confirmations
To ensure that customers purchase insurance products only afterTraining Initiatives for In-house Sales
Representatives and Agentsdeveloping a full understanding of the contents, the Group’s three

The Group’s three life insurance companies actively train in-life insurance companies had been asking customers to read Producthouse sales representatives and agents to provide them with

Brochure and Product Summary Sheet as Agreement Summary and,basic and expert understanding of life insurance products andwhen they apply for coverage, confirm their understanding of thegive them the capabilities necessary for responding toImportant Information or Information Customers Should Be Aware

customer needs in ways consistent with compliance demands.

of, which contains particularly important items or matters that
customers should pay particular attention to and the Policy Leaflet■ Support for obtaining professional qualifications, Taiyo Life example

and Policy Provisions, which contains a policy explanation andTaiyo Life actively supports employees to win professional

information on policyholder rights.

qualifications as a Life Consultant or Senior Life Consultant.

In June 2007, however, all three life insurance companies

Both qualifications are professional designations commonly

introduced Intent Confirmations as a final customer confirmation

recognized in several industries and are intended to promote thethat the characteristics of the insurance product being applied fordevelopment of expert knowledge.

match the customer’s needs. Customers are permitted to enter into

Additionally, Taiyo Life offers AFP classes aimed at improving

an insurance agreement only if they are satisfied that their needs

financial planning capabilities and supports employee efforts towill be met.

become a Certified Skilled Worker of Financial Planning or an
Affiliated Financial Planner.
IntentConfirmation

Important Information or
Policy Leaflet andInformation Customers
Policy Provisions
Should Be Aware of

Qualification Examination System

Year 1

Year 2

Specialized course(Life Consultant)Application Course(Senior Life Consultant)Selfdevelopment

Year 3 and onwards
Life Insurance
University Course(Total Life Consultant)

AFP Training
CourseCertified Skilled
Worker of Financial
Planning

Development of Solicitation Policy
The Group’s three life insurance companies have established
Solicitation Policy which form the ground rules for soliciting
activities complying with legal requirements. Under the Policy, theQualification exam forvariable insurance sales
Qualification exam for non-life insurance products

companies constantly work to develop and propose products thatappropriately respond to customer intentions and circumstances,and make efforts to ensure that customers purchase policies only

■ Soliciting agent training program, Daido Life example

after thorough understanding of the coverage to be applied.

Daido Life has established a training system tightly linking the

Solicitation Policy, Taiyo Life example

headquarters, branches, and staff responsible for overseeing
agents and uses it to provide high quality support to agents. It is

Below are Taiyo Life’s basic policies regarding solicitation of life
insurance and sales of other financial products to customers. Services
most appropriate for customers are offered through consulting stylesales, and Taiyo Life personnel constantly work in ways that are fair
and appropriate to design and solicit products in consideration offactors like customers’ wishes, circumstances, and privacy.

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 industry.

• Laws and regulations will be complied with insolicitation activities.
• Effor ts will be made to pursue appropriate
solicitation activities, in light of the customer's
circumstances.
• Factors like time and place will be fully considered.
• Effor ts will be made to appropriately explain
important matters.
• Efforts will be made to provide personnel withcomprehensive education and training.
• Customer information will be handled with the strict care.
• Systems for the pursuit of appropriate solicitation
activities will be built.

23 T&D Life Group CSR Report 2007

Briefing
session oncommissioned
business

Training
beforeregistration

Examination of general courses

Activities Aimed at Increasing Customer Satisfaction

Offering of Better Products and Services

Product Summary
Sheet as Agreement
Summary

Training after registration
Compliance training
Business know how training

Practical sales training

Group training, in-house training, andaccompaniment support

Reflecting Customers’ Voices in Operations
To Hear as Many Customers’ Voices as Possible● Taiyo Life Example■ Establishment of a customer service center or a call center

Acting on customers’ desire
for Taiyo Life to take calls on
Saturdays because they arebusy during the weekdays,
Taiyo Life began in October
2006 to provide services
through its customer service
center on Saturdays.

The Group’s three life insurance companies have eachestablished call centers from which they aim to provide
high-quality services through operators who have undergone
high level practical training and apply the latest technology
to respond rapidly, accurately, and in great detail to inquiries
and requests from customers throughout the nation.

Call center

Number of Inquiries Received by the Customer Service Center
Subject

2005

Subject Details
Payments
Maintenance
New Policy
Others(unit:number)

Taiyo Life
Procedures concerning loans, policy surrenders, claims,
benefits, and pension payments
Inquiries on the status of insurance premium payments,changes in address, and changes in contract terms

Daido Life

Total

T&D Financial Life

2006

2005

2006

2005

2006

2005

219,716 289,562

19,71425,23814,565

19,155

253,995 333,955

135,321 193,770

68,43598,332

51,117

48,396

254,873 340,498

2006

Product details and requests for brochures

5,579

12,454

150

318

1,443

1,349

Tax matters, process of incorporation, inquiries on
joining the T&D Club Off, etc.

50,09845,36028,132

28,82050,09851,702

128,328 125,882

410,714 541,146 116,431 152,708 117,223 120,602

644,368 814,456

Total

7,172

14,121■ Informal discussions with policyholders,drawing participation from 1,318 policyholders.

insurance, Taiyo Life holds

After separating opinions and requests into those requiring

informal discussions withimmediate action and those meriting action over the medium

policyholders once a year

term, reports were prepared for relevant units andat each of its branches.

management, and efforts are now being made to reflect

In fiscal 2006, Taiyo Lifefindings in services and operations.

held these discussions at
Fiscal 2006 Taiyo Life policyholders
meeting

Initiatives for Responding to the Voices of Customers
by the Group’s Three Life Insurance Companies
The Group’s three life insurance companies are advancing

reflecting these customers’ voices in management andvarious initiatives aimed at further enhancing internal

making improvements with the ultimate aim of achieving

systems for gathering valuable customer feedback. They areoperations that meet with even greater customer satisfaction.

Taiyo Life

insurance claim & benefit payment inquiries and othercontacts, and, therefore, a significant increase in information■ Customers’ voices information system

recorded in the Customers’ Voices Information System,

Taiyo Life has instituted a system that rapidly records in its

relative to fiscal 2005.

Customers’ Voices Information System opinions,complaints, and other feedback received through branches
across the country and its call center, survey responses, andComplaints(unit:number)

Fiscal 2005

Fiscal 2006

5,804

26.2%

11,767

38.0%

3,784

17.1%

2,697

8.7%

within the Company. In fiscal 2006, redoubled efforts toOpinions, Requests,
or Inquiries
Words ofAppreciation or Praise

12,54056.7%

16,533

53.3%

gather customer feedback resulted in a higher number of

Total

22,128100.0%

30,997100.0%

other channels, and appropriately share that information

Reflecting Customers’ Voices in Operations

146 branches throughout the country (excluding Okinawa),

promote greater understanding of its performance and life

Offering of Better Products and Services

Taiyo Life example
To hear opinions and desires directly from policyholders and24Offering of Better Products and Services■ Establishment of the Committee that Makes

Use of Customers’ Voices
To enhance systems for reflecting customers’ voices in

discusses the status of operational improvements based on

management, the Committee that Makes Use of Customers’

customers’ voices and the content of Customers’ Voices Council

Voices was established in April 2006 and the Basic Policy ofin which the managers of relevant units come together to talkcomplaints handling system was created in December of theabout problem solutions. The opinions of outside members of thesame year.

Committee that Makes Use of Customers’ Voices are

The purpose of the committee mentioned above is to enhancecommunicated to relevant units and reflected in their activities.

protections for customer rights and interests and provide services

The Basic Policy of complaints handling system calls for rapid,that satisfy customers. The committee is composed of members

earnest actions to effect improvements in response to customer

from outside the Company, as well as Taiyo Life executives, andcomplaints, and regular reports to management on the contents

meets quarterly. In specific terms, the committee examines andand causes of complaints, and the status of improvements.

Information
aggregation/
centralizationFace-to-face contact
Customer visit to
the Company

Customers’
Voices Information
SystemSurveyInformation
sharing

Customer
Consultation
CenterAnalysis andexamination ofcustomers’ voices

Formulation of
preventive or
improvement measures

BranchReportPolicyholders meeting

Reflecting Customers’ Voices in Operations

Offering of Better Products and Services

WebsiteImplementation of preventive measures,
service improvements, etc.

Relevant units

Daido Life

Instructions

ReportInstructions

ReportManagement

Response to customer

Call Center

Responsible units

Committee that
Makes Use of
Customers’ Voices

Customer

Customers’
Voices Council

Customers’ Voices Information System

Opinions andrecommendations■ Operational improvement initiatives based on customers’ voices
Gathering and database management of customers’ voices■ Systems for hearing customers’ voices

Customers’ voices gathered from throughout the country are

Customers’ voices received through branches, call centers, and the Internet

centrally managed in a database by the CS Promotion Department.

Customers’ voices received daily on a national basis are responded

The customers’ voices in the database are analyzed and information

rapidly and appropriately, and centrally managed as information.

on problems and other matters are sorted out and extracted.

Negative comments and complaints are taken seriously and efforts

Examination and realization of improvement

are made to resolve problems as quickly as possible.

measures based on customers’ voices

Customers’ voices gathered through surveys

Headquarters management units and other entities drive efforts toSurveys are included with the Notice Concerning Your Policy

examine and develop concrete improvement measures for identified

Details leaflet sent to policyholders every year to gather

problem areas. Monthly reports are presented to the Executive

opinions on Daido Life’s services and its responses to

Committee and improvement efforts are monitored as necessary.

customers. Since April 2006, Daido Life has been asking

CS Sessions for the steady implementation of improvement measurespolicyholders to respond to a Procedure Survey when they

Improvement measures that have been given concrete form are sharedpurchase a policy or change their coverage.

with all employees and directors in CS Sessions, and implemented in

Customers’ voices received through policyholders

daily activities.

meetings

CS sessions, which are led by Branch Managers and General Managers at

Every year, branches throughout the country hold policyholders

the head office, are held quarterly and are companywide opportunities tomeetings in which they ask policyholders directly to express

discuss in detail, and implement, ways to apply improvement measures,

their opinions and requests regarding Daido Life.

preventive measures, etc. among all the employees of relevant units.

Customers’ voices received through in-house sales

Sharing of customers’ voices and information on

representatives and agents

improvement measures and other matters

Customer opinions and requests received through sales activities

Customers’ voices and improvement measures are included in the Complaint andare gathered from throughout sales channels using the CS Post

Consultation Report, which is distributed throughout the Company every month, and aresystem access points established on the Company’s LAN.

posted on a bulletin board on the Company’s LAN, in an effort to improve customer
convenience and prevent recurrences of situations leading to the similar customer complaints.

25 T&D Life Group CSR Report 2007

■ Numbers and representative examples of complaints

In October 2005, the definition of “complaint” was revised

Measures aimed at listening to the comments of an evento read, “a customer comment with a kind of expression ofwider group of customers are being taken.

dissatisfaction regarding work performed by Daido Life.”(unit:number)

Fiscal 2005

Fiscal 2006

Complaints % of Total Complaints % of Total

Representative Example● Did not hear when the policy was signed that there

Matters related to policy purchases
456

Explanation at the time of policy signing,
agreement processing, etc.

18.8%

939

17.1%

are no maturity benefits● Did not hear that there are policy confirmations evenafter the application process is finished● Requested that the account for transfers be changed, but

Matters related to premium
payments, etc.

that request has not been honored

319

Premium payments throughaccount transfers, policy lapses, etc.

13.1%

682

12.4%

● After changing coverage, an Account Transfer Noticearrived, but it showed only the total amount transferred andpresented no details on individual policies or changes made.
● Asked that a policy surrender request form be mailed toMatters related topost-enrollment procedures, etc.

me, but it has yet to arrive

845

Policy changes, updates, surrenders,and other maintenance work

34.8%

2,230

40.6%

● The premium notice that arrived after I renewed mypolicy indicates a higher premium. Why is the premium
higher?
● I submitted a claim for hospitalization benefits two weeks

Matters related to insurance
claim & benefit payments

483

Explanations, procedures, etc. for claims,
benefits and annuities

19.9%

1,094

19.9%

ago, but I have not yet received a payment. When will
payment be made?
● I am not convinced that I cannot receive benefits for mysurgery.
● I have not received a visit since my sales representative

quit.

Other

323

Total

2,426

13.3%

545

9.9%

● I had something to ask my sales representative, but I wastransferred to the call center without a detailed
explanation of why.

100.0%

5,490

100.0%

comment received through the customer service center, andT&D Financial Lifeenhancing the quality of its services and operations throughT&D Financial Life places great value on every customer

operational improvements.

Examples of Improvements Made by the Three Life Insurance Companies in Response to Customers’ Voices

Taiyo Life

Daido Life

T&D
Financial
Life

Customers’ Voices

Improvement Example

I want to consult a lawyer about insurance
claim & benefit payments.

A special section to handle insurance claim & benefit payments has been established, and, forcustomers who would like to raise an objection or have questions about insurance claim & benefit
payments, a system in which an outside, neutral lawyer can be consulted has been established.

Is it possible to make hospitalization
coverage unlimited in the case of cancer?

In the past, cancer and whole life cancer riders limited payments to 120 days ofcontinuous hospitalization and 1,095 days of total hospitalization. Recently, however, a
new unlimited rider has been introduced.

I want the Company to cover expenses
related to physical examination certificates.

When benefits cannot be paid since the requirement for the payment is not met,
payments for physical examination certificates prepared by a physician will be coveredby the Company at 5,000 yen per certificate.

I am worried that insurance policy
certificates are sent by ordinary mail.

To ensure that insurance policy certificates are delivered to customers, all insurance
policy certificates are now sent by delivery-certified mail.

I didn’t know that cash surrender value
declines over time.

A notice providing information on the nature of cash surrender value by policy typeand on the cash surrender value transition over the coming 10 years is now included
together with the Policy Information Notifications sent every year.

I’ve been hospitalized, but I don’t know how
much of what kind of benefits will be paid.

So that customers can confirm ahead of time coverage and amounts for which claims
may be submitted, information showing the details of coverage customers havepurchased is provided to each customer when a benefit claim is submitted.

My insurance policy certificate arrived, so I
tried to use the Internet services, but it was
unclear what my login number was, so I
gave up.

To avoid the risk of theft, insurance policy certificates and ID numbers necessary forInternet service login are mailed separately. Now, a notice informing the customer that
the ID number will arrive one week after the insurance policy certificate is included
with the Service Guide sent together with the insurance policy certificate.

I don’t know what kind of documentation
will be sent after I purchase a new policy.

After a policy is purchased, a table listing all of the documentation to be sent to thecustomer is prepared and given to the customer in advance to enhance convenience ofthe customer.

A policy change notification arrived, but it’s
just printed on ordinary paper, so I can’t relyon it.

Policy Change Completion Notices are now being prepared using paper of the same
quality used for insurance policy certificates to increase customer satisfaction.
At the same time, a security pattern is printed on the back of each notice to prevent
unauthorized viewing of policy details.

Reflecting Customers’ Voices in Operations

response to complaints, opinions, and cited problems, andcustomer service

Offering of Better Products and Services

it has installed systems for improving its management in■ Systems for providing rapid, uniform

26

Offering of Better Products and Services

Offering Products and Services that Meet
Customer Needs
Offering of Products and Services
The Group’s three life insurance companies are proactively

New Children’s Insurance from
Women’s Perspective

working to offer products and services that respond todiversifying customer needs.

■ Waku Waku Pokke or wonderful pockets from■ Recently developed products

In April 2007, Taiyo Life

Taiyo Life

introduced a new children’s

Taiyo Life has introduced its Issho Kenmei Ikiru insurance

insurance product called,

product, which makes it possible to prepare for nursing care

Waku Waku Pokke. This

needs at a low premium, its Iryo Supli, a new type of

product was created byinsurance product that covers various hospitalization

female employees on a development team working in

expenses with a lump sum payment, and its Kisei Kanwa

cooperation with mothers who have children. One of theinsurance product, which offers more coverage options andnew services offered with this product permits policyholders

can be purchased with a simple disclosure of health status

to write Waku Waku Mail or wonderful or happy messages

even by those already receiving outpatient care and others

that are then held by Taiyo Life and delivered to theworried about their medical situations.

policyholders’ children when they become adults.

Taiyo Life

Waku Waku Pokke pamphlet

Provision of New Sales Support Tools
Melding Paper and Video Media■ Cross-media from T&D Financial Life

T&D Financial Life developed and provide its agents with

Offering Products and Services that Meet Customer Needs

Offering of Better Products and Services

Issho Kenmei Ikiru
pamphletIryo Supli
pamphlet

Kisei Kanwa
pamphlet

proprietary Cross-media sales support tools employing Grid
Onput (Note) for sales of insurance products over bankDaido Life

service counters, which have grown rapidly in the wake ofWith the primary aim of enhancing the competitiveness ofderegulation.

its mainstay term life insurance, Daido Life has introduced

Cross-media is a system in which dots that are printed on

several new products. Three examples are its Muhaito Nen-

pamphlets or other paper-based media, but invisible to the

manki Teiki Hoken or nonparticipating type term life

naked eye, are read by a special pen scanner connected to ainsurance with no cash value, Muhaito Sai-manki TeikiPC, which then plays visual and audio information related to

Hoken or nonparticipating type term life insurance, andthe page on which the dot was printed. Cross-media melds

Muhaito Sai-manki Teiki Hoken or nonparticipating typethe versatility, immediate viewability, and storability ofterm life insurance with low cash value.

paper with the ease of understanding and presentation
capabilities of AV media, and makes it possible to provide
unified explanations and accurate information in optimal
amounts.
Additionally, Cross-media
makes it possible to
add audio and visualMuhaito Nen-manki Teiki
Hoken or nonparticipatingtype term life insurance withno cash value pamphlet

Muhaito Sai-manki Teiki
Hoken (nonparticipatingtype term life insurance)
pamphletinformation to verbal

Muhaito Sai-manki Teiki
Hoken (nonparticipatingtype term life insurance withlow cash value) pamphlet

explanations and helps
to ensure that customers

T&D Financial Life

fully understand theIndividual variable annuities or investment type annuities

contents before examining
andare useful for providing retirement income, effective asset
management and inheritance planning, and serve a wide

Example of a Cross-media Application

purchasing

theinsurance products.

variety of other needs.
Premiums paid on variable annuities are managed in special
accounts or funds and annuity payments, death benefits, etc.
vary according to investment performance, however, there isa type that minimum living benefits at maturity is
guaranteed.

27 T&D Life Group CSR Report 2007

(Note) “Grid Onput” is a registered trademark of Grid Mark Ltd. and refers to a
new information recognition system that uses a miniature camera to
instantly read extremely small dots printed on photos or textual
characters.

Services Responding to Customer
Desires■ Daido Life services

In addition to face-to-face services provided throughService, Health Support Service, and Management Support

branches throughout the country and the head office, theService.

Group’s three life insurance companies provide a wide

Through its Health Support Service, Daido Life offers

variety of services through their customer service centers or

policyholders services that promote good health and arecall centers and the Internet.

useful for medical examinations.

Daido Life responds to various needs through its Internet

Second opinion service (Note 1)■ T&D Club Off

With Daido Life’s second opinion service, policyholders can

T&D Club Off is a service for the policyholders of thereceive medical consultations or second opinions regarding

Group’s three life insurance companies.

their medical conditions/symptoms from prominent(Note) For details on services, please refer to the website of the Group’s threelife insurance companies.

Japanese physicians, and obtain introductions to the mostappropriate specialists (Note 2) for their conditions/symptoms.

●

Examples of T&D Club Off Services

・Domestic lodging
・Online reservations for overseas hotels
・Business hotel reservation services
・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

・Golf reservation services
・Recreation facilities

Medical Consultations

Second Opinion

Prominent
physiciansinparticular medical fields orgeneral consulting physicians
provide second opinions
regarding customers’ current
medical conditions/symptoms
under treatment or introduce
leading specialists appropriate
for their conditions/symptoms.

Second opinions provide
policyholders with views ofanother physician, physician
other than the policyholder’s
primary doctor, on an existing
diagnosis and future treatment
options,
so
that
the
policyholder can make a bettermedical care decision.

■ Taiyo Life services(Note 1) The Second Opinion Service is provided by T-PEC through apartnership with Daido Life.
(Note 2) A “specialist” is one of physicians in 46 specialty fields unanimously
selected by the members of T-PEC’s Doctor of Doctors Council.

The Rakuchin Services or effortless transfer make it possible
to rapidly transfer funds such as policyholder loan,■ T&D Financial Life services

accumulated dividend, and other reserves to a designated

T&D Financial Life policyholders may call the Company’s

account with a few simple procedures. The telephonecustomer service center toll-free with their questions,version of these services is known as Rakuchin Dial, and therequests, and claims.

Internet version as Rakuchin Net.

Additionally, to enhance customer convenience, T&D

Using Rakuchin Net, policyholders may confirm coverage,

Financial Life is gradually posting on its website

premiums, and other policy details by Contract Term

information on the matters policyholders most often ask

Reference Service, make address changes or request

about.

additional copies of tax deduction certificates for life
insurance, request various types of claim forms, and perform
other tasks, as well.

Customers’ voices website

Offering Products and Services that Meet Customer Needs

Policyholders are provided with introductions to leading specialists
recommended by general consulting physicians in light of their medical
conditions/symptoms. Additionally, when second opinions are provided,
the most appropriate specialists are recommended when apolicyholder’s medical conditions require greater expertise.

Offering of Better Products and Services

Introduction to Leading Specialists

Rakuchin Service website

28

TOPICS
T&D Financial Life

The “My Days” 7- and 10-year AssetManagement Products with 100% Guarantee
for Minimum Living Benefits“I want to securely manage my annuity funds and get returns as quickly as
possible.”
T&D Financial Life, responding to customer needs like this, has developed its“My Days” investment type annuity products, with 7- and 10-year investment
periods and 100% guarantee for minimum living benefits. These products,
which were introduced in January 2007, are being sold through Daiwa
Securities and have been supported by broad customers.

I also think that guarantee for minimum living benefits and“My Days” products have been given
strategic placement at the Hibiya
Branch of Daiwa Securities

the 7-year investment period have had an extremely

Mr. Katsumi Maekawa

want to know more about “My Days” products.

Hibiya Branch Manager Daiwa Securities Co. Ltd

Customers have also apparently been attracted by the fact

powerful impact in drawing people’s attention. Many
customers have said that these features caused them tothat “My Days” products enhance security through well

Expectations that “My Days” will
Become a New Core Productbalanced diversification across a broad variety of

The world demand for asset management has been risingin as little as one year.

investments and allow investors to receive annuity payments

sharply since the equity price resurgence that began around

TOPICS

2003. Furthermore, as if in response to that price rebound,Support System

we have seen a gradual

T&D Financial Life provides broad support every time a newrise in investment trust

product comes out, and we find product training sessions forbalances, which has likely

in-house sales representatives to be particularly helpful. This

been further accelerated

training, which is occasionally performed one-on-one, of

by factors like aggressive

course helps in-house sales representatives to understandsales through banks, andproducts, but it is also extremely useful for enhancing sales

sales through post offices,

capabilities. We are also satisfied with the fact that T&D

which began last year.

Financial Life clearly explains product advantages andEveryone has the desire

provides information on a daily basis.

to

grow

their

assetscannot be ignored. Until now, the products handled by

I want to strengthen relationships
with financial institution agents anduncover new directions.

securities companies did not fully address needs to leave

Mr. Hiroyuki Ota

assets for younger generations.

Sales Promotion Division Manager East Japan Promotion Office No.2

We have great expectations that “My Days” products will

Business Promotion Department T&D Financial Lifeeffectively, but needs touse assets, or leave them for younger generations, also

become core product for addressing that situation. Daiwa

In the past, we held events like inheritance planning seminars,

Securities believes that it can enhance its product line bywhere we presented information to customers. We also usedoffering unique investment type annuity products like theevents like study sessions to communicate exper tise

“My Days” products and fur ther enhance customer

on soliciting insurance tosatisfaction in the process.

agents. Moving forward,
fur ther strengthening our“My Days” Sales Points

relationships with agents andI believe the greatest reason these products have been sohaving each side put forthwell received by so many customers is that they offer a 7-

new ideas will be important inyear investment period, whereas previous individual variable

providing valuable information

annuities almost all had 10-year periods. That over 90% of

to customers. Of course, on

customers who have purchased “My Days” products havethe support side, I would like

opted for the 7-year investment period can be seen as ato do even more than weclear indication of its attractiveness.

have done in the past.

*Please also refer to “Cautionary points concerning “My Days” products” on
the next page.

29 T&D Life Group CSR Report 2007

T&D Asset Management

Practicing Product Developmentthat Anticipates Future Needs
T&D Asset Management has established an environmental fund for individual investors.

A new environmental fund fora new era

Focusing on environmentrelated companies

Mr. Hiroto Makino

Mr. Masataka Abe

Executive Officer

Senior Manager,

Director of Marketing

Marketing Department,

T&D Asset Management Co., Ltd.

T&D Asset Management Co., Ltd.

As a member of the T&D Life

Our environment is facing food shortages due to population

Group, T&D Asset Management

growth, resource depletion driven by rising standards of living,develops unique products that

increasingly serious environmental degradation, and a wholeanticipate customer needs. Ourhost of other crises. As a result, theme funds investing in areas

work largely consists of:like technologies that make important contributions in improving

1) Provision of management

situations of water, energy, food, and the environment haveservices to the Group’s three

become the focus of attention. Concentrating primarily onlife insurance companies;

sustainable growth, and enhancing fund uniqueness and2) Provision of investment

appeal by targeting environment-related companies, I want toadvisory services to parties likeoffer investors new options.

institutional investors and public

others. In pursuit of these operations, the Marketing Department

Contributing to society
through environmental
funds

handles a wide array of functions, ranging from the provision of

Mr. Shigeki Nakai

customer services to the development of products.

Senior Manager Marketing Dept.

management services for individuals, institutional investors, andAdditionally, we have recently established a new

T&D Asset Management Co., Ltd

environmentally themed fund. This fund focuses on theGoing into the future, it will be increasingly important tosustainable growth of companies, which is a key consideration

accurately communicate the significance of sustainability toin equity investment, and emphasizes the view that

customers in SRI fund initiatives. In light of growing global

environmentally conscious companies in particular will realize

environmental awareness, I believe this will be extremely

sustainable growth with an eye toward SRI or Sociallymeaningful from the perspective of social contributions by

Responsible Investment, an increasingly important global trend.

financial institutions.

TOPICSand private pension funds; and 3) Provision of investment trust

Cautionary points concerning “My Days” products■ These insurance products have no minimum guaranteed cash surrender value.
■ Policyholders may have to bear surrender charges when policies are surrendered or coverage amount is reduced.
■ Because minimum living benefits equivalent to lump sum insurance premiums are guaranteed, it is necessary to maintain insurance policies through the endof their investment periods, without coverage amount reductions or other policy changes.
■ These insurance products are individual variable annuity life insurance for which disaster death benefits, death benefits, reserves, cash surrender values, and otheramounts vary daily based on the returns from investing funds in separate accounts. Funds in separate accounts are invested in equities, bonds, and other instruments via
investment trusts and cash surrender values may fall below the total of premium amounts paid in due to fluctuations in the prices of equities, bonds, and other instruments.

Expenses
Item

Expense

Initial policy expenses

This insurance product has no initial policy expenses.

Insurance related expenses

Deductions calculated based on the following percentages are made from reserves on a daily basis.
7-year investment period: 2.28% annual rate/365 10-year investment period: 2.07% annual rate/365

Investment related expenses (Note 1) (Note 2)

About 0.1995% annual rate (after tax: 0.19%)/365 is deducted on a daily basis

Policy maintenance and management fees

This insurance product has no policy maintenance or management fees.

Reserves transfer fees

This insurance product has no reserves transfer fees. (This insurance product does not permit the switching of reserves.)

Annuity Payments

Insurance related expenses(pension management fees)(Note 2)

1.0 percent of annuity payments are deducted on the annual annuity payment date.

Surrender or
Coverage
Reduction

Surrender charges

Enrollment

Investment
Management

Surrender charge = (reserve amounts as of the surrender or coverage reduction date *1–
exempted surrender charge *2)×Surrender charge percent (max. 6.0%) *2*1 For coverage reductions, the reserve to be reduced on the coverage reduction date. *2 Exempted surrender charge and surrendercharge percent differ depending on factors like the number of years elapsed since policy enrollment, investment course, etc.

(Note 1) Refers to trust fees for investment trusts that primarily invested in. In addition to trust fees, investment related expenses may include trust administration
expenses, brokerage fees, etc. These expenses will differ depending on factors like transaction sizes. Due to the difficulty of determining them ahead oftime, specific amounts and proportions are not provided.
(Note 2) These expenses may change in the future.

30

Strict Compliance

Strict Compliance
Basic Compliance Policies

Group Compliance Promotion System

The T&D Life Group, as one of its management visions, has

T&D Holdings has established its Group Compliancecommitted itself to “broadly fulfilling the social

Committee immediately below its Board of Directors as an

responsibilities with high ethical standards and strict

organ for monitoring and improving compliance within thecompliance practices,” thereby positioning legal complianceGroup. The committee, which is chaired by the President

as a key management priority. Furthermore, the T&D Lifeand comprised of all Directors and Executive Officers withGroup has set forth the T&D Life Group CSR Charter andoperational responsibilities, works to ensure strict

the T&D Life Group Compliance Code of Conduct, andcompliance by discussing compliance matters, reporting its

takes measures to promote compliance by ensuring that all

conclusions and expressing its opinions as necessary to theemployees and directors understand their content as theBoard of Directors to promote strict compliance.

Company’s basic policies on legal compliance.

The Risk Control Department, which has overall
responsibility for promoting compliance, performs regularCompliance Program
Each T&D Life Group member company takes compliancemeasures that are based

monitoring in cooperation with the compliance units of theGroup’s three life insurance companies, and provides thesecompanies with guidance and advice.
The three life insurance companies and other Groupon the Group’s basic

members, as well, also have compliance promotion systems

compliance policies

consisting of compliance committees and units charged withand are appropriate foroverall responsibility for compliance.

its size and character instriving to ensure highcompliance awareness.

Group Compliance Promotion System
Compliance training

T&D Holdings

Holdings and the Group’s three life insurance companies havecreated Compliance Programs as concrete, implementable

Corporate Auditors

Board of Directors

Board of Corporate Auditors

Strict Complianceplans aimed at having all employees and directors practice
taking other steps to reinforce compliance in business

Risk Control Department

activities.

Guidance andAdviceDeliberation andReporting■ Promoting compliance among in-house sales

representatives
In addition to compliance training based on a Compliance
Strict ComplianceGroup Compliance Committee

legal compliance and are performing compliance training andTaiyo Life

T&D Asset Management

Daido LifePet and Family Small-amount
Short-term Insurance
Other Group Companies

T&D Financial Life

Program, a Compliance Manual has been prepared for in-housesales representatives
and is used as both aCompliance Cards

guidebook for daily

To help ensure strict

activities and as acompliance, employees

teaching material forof the Group’s three life

compliance training.

insurance companies
Compliance Manual

always carry with themcards on which key
compliance points are■ Promoting compliance among agents

printed.

The Compliance Manual has been prepared for agents. Thismanual describes specific details of sales activities that areappropriate from a legal perspective and is used in compliancetraining and on other occasions to promote compliance.

31 T&D Life Group CSR Report 2007

Compliance cards andsolicitation policy leaflets

Internal Auditing

For example, T&D

Upholding the Group Compliance Code of Conduct

Establishment of a Whistleblower System

The T&D Life Group Compliance Code of Conduct has been

The T&D Life Group’s three

formulated as both a set of basic policies that are rooted in laws

life insurance companies andand regulations and to be followed by T&D Life Groupother Group members have

employees and directors in pursuing fair and proper businesslong been operating their own

activities, and a set of principles and fundamentals to be applied

whistleblower systems. In Aprilin practicing compliance in daily sales activities. T&D Life

2005, however, the T&D LifeGroup management recognizes that realizing the spirit of theGroup Helpline was establishedCompliance Code of Conduct is its responsibility and strives tofor use by all Group employees

lead as a model in deepening understanding and promoting

and directors.

application of the Compliance Code of Conduct in the Group.
T&D Life Group Helpline poster

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 inorder to ensure that their business activities are conducted in a fair
and adequate manner in line 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 andrules in their daily business operations. Anyone not following theCompliance Code of Conduct of the T&D Life Group may bedisciplined for noncompliance with laws or in-house rules.

1. Strict Compliance with Laws, Regulations, and Rules
We will comply with social rules, including such laws as the Insurance
Business Law as well as our own in-house rules. Being aware of the
background of these norms, we will conduct ourselves in an honest manner.

■ Implementation of the Whistleblower System

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. In the
future, the Group will continue its efforts to promotecompliance through this whistleblower system.

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

We will properly disclose and explain information on our products and services aswell as information about the management of the Company and Group companies.

4. Proper Information Management
We will properly handle customer information that we have 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 not been disclosed to the public. We will not allow this information
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 obtainedin the course of our business for the purpose of making corporate or
private investments or for other personal economic activities.

■ Introducing the T&D Life Group Helpline

outside the Company
At a CSR open seminar held by Dial Service Co., Ltd. in
November 2006, the T&D Holdings’ Risk Control Department
Manager gave a presentation on “T&D Life Group Helpline
results and issues.” That presentation, which was given before
70 compliance managers and others, included an overview of
the T&D Life Group Helpline, and descriptions of activities
resulting in the establishment of the helpline and handling, andissues after starting the operation.

6. Response to Antisocial Powers
We will reject and stringently respond to any antisocial powers andorganizations that threaten the order and safety of a civil society.

Strict Compliance3. Proper Information Disclosure

Strict Compliance

2. Maintenance and Promotion of Fair and Free Competition

7. Limitations on Business Entertainment
We will not give or receive gifts and will neither make nor accept
offers of entertainment beyond the extent of social norms.

8. Distinction between Private and Public Matters
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
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 the code of conduct
among Group companies and play a leading role in promoting the observance of the code.

Helpline presentation

32

Respect for Human Rights

Initiatives to Improve Employee Motivation
Employee Development Direction
The T&D Life Group has formulated education and training

Utilization of Women and Skill
Development

plans under the basic policy of “developing human resources

Having the objective of being a place where women can workwith boundless creativity and a solid ability to get things done”,

with great enthusiasm and motivation, the Group has created anwhich is included in management visions, and is working toenvironment that adjusts flexibly to the life stages of women,develop and improve employee skills.

and hires and promotes employees without regard to gender.
Specifically, the Group is recruiting outstanding female
employees for management positions, encouraging women to

Education and Training
The T&D Life Group’s three life insurance companies provide
education and training primarily through on-the-job training,group training, and self-development support.
The Group supports the personal career improvement efforts ofchange to career-track status, has created product development
teams through open recruiting to develop products fromwomen’s perspective, and is taking other such steps to takeadvantage of the skills of female employees and promote thedevelopment of a workplace where women can thrive.

individual employees by, for example, actively supporting
efforts to gain professional qualifications and offering a broad

Voices of Female Managers

array of courses through correspondence, e-learning, and othereducation and training channels.

When it was decided that I would be promoted
to Branch Manager, I was thrilled andoverwhelmed, but now I have a very realappreciation of the weight of my responsibility.

Career Plan Formation

In part to repay those who have supported me,

Respect for Human Rights

The T&D Life Group provides opportunities for employees to

I intend to meet my responsibilities as a Branch

actively develop their own skills and supports employee efforts

Ms. Mariko Tobisaki

to develop career plans.

Oyama Branch Manager

In fiscal 2006, the Group introduced an internal recruiting

Taiyo Lifeand society. Those women who are aiming tosystem to allow employees to apply for positions they would

gain a managerial position in the future would

like to take on as new professional challenges, a system in

do well to have patience, be tenacious, and to always be optimistic. I

which employees express the jobs they would like to perform inthink personal qualities and skills must be developed on one’s own andthe future, career plan training encouraging employees reachingthat not accepting the status quo, having objectives, and putting in thecertain ages to consider options for future career development,

required effort will result in the natural accumulation of skills.

and other career-related programs, as well. Additionally, theGroup has introduced a system for changing career courses in

I think our role as employees overseeing TA and CPA

an effort to meet needs arising from changes in career goals or

agents is to work with tax accountants to help client

living circumstances.
Initiatives to Improve Employee Motivation

Manager and contribute to both the Company

companies develop measures to address risks they
are facing and gain sense of assurance.
Toward that end, it is important for the Company

Re-employment System
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 65. Thirty-seven of theeighty-two Group employees who retired in fiscal 2006 havebeen rehired under the system. In addition, life planningseminars have been held to encourage employees who haverecently turned 50 to consider options for how to work and livein the future.

covering the risk to be trusted, but, more

Ms. Kanako Itou
Associate General Manager
Kanagawa CPTA Agency
Management Sales Dept.
Yokohama Branch
Daido Life

fundamentally, I think nothing would be possible if we those representing the Company - are not trusted byaccounting firms and customers. I, therefore, devote a

lot of attention to helping individual employees improve their manner, knowledge,
and communication skills, so they will be capable of earning the trust of those they
deal with. I work hard to grow together with everyone else, as I think of ways tocreate a workplace in which people can approach their jobs with great motivationand exercise their capabilities to the full extent. Furthermore, in an environment inwhich there are relatively few female managers, I want women with a sense ofchallenge to do their best to build their careers and have fulfilling lives with theirspouses and children. My desire for my job is to be uplifting and fun and allow me toachieve goals together with coworkers, while improving myself throughcommunication with others within the environments I have described.

33 T&D Life Group CSR Report 2007

Promoting a Work/Life Balance
The T&D Life Group supports employee efforts to achieve a work/lifebalance. The Group believes that healthy balances of work and life allow
employees to work with a greater sense that their jobs are meaningful,help the Group to recruit outstanding people, and encourage employees
to stay with the Group over the long term. Specific examples of what the

Simulation of Periods during which theChildbirth/Childcare Leave System Can Be Used
Pregnancy

Time off before andafter childbirthPrimary school entry

Childcare
System also allows male
employees with smallchildren to take this leave

Childcare leave

Outpatient care leave
Nursing care leave

prevent excessive physical and mental job-related stress, measures such

Shortened working hours and other measures

as the introduction of anniversary days off to promote the taking of paidvacation days, and the introduction of a childcare leave support systemAge 1

Adjusted
work hours

Group does to promote a work/life balance include the Limit 21 system
which turns off all lights at the head office building at 21:00 to help

Childbirth(Note) Periods during which leave may be taken differ depending on the Group member.

and other measures to help employees care for their children.
The Group is also encouraging male employees to take childcare leave

In April 2007, the Group’s three life

and, throughout the Group, 18 did so during fiscal 2006.

insurance companies were officiallyrecognized by the Chief of the Tokyo

Voices of Employees Using the Childcare Leave Support System

Labour Bureau for their active
support of the development of the

The “wiwiwi” program for helping employees onnext generation and were eachchildcare leave to return to work was introduced three

awarded certification as a Company

months after my child was born, and I didn’t hesitate toin Compliance with Standards underenroll in it. Enrolling in this program heightened my

the Law for Measures to Support theawareness of my connection to the Company and gave

Development of the Next Generation.

Symbol indicating compliance withstandards under the Law for Measures to
Support the Development of the Next
Generation called “Kurumin”

me an even greater sense that I had to make the mostinformation on childbirth and child rearing, and support
tools for returning to work. Child-rearing information is

Ms. Atsuko Matsuura
Financial Loan Administration Div.
Investment Administration Dept.
Taiyo Life

Employee Awareness Survey
The Group’s three life insurance companies perform employee
awareness surveys addressing topics like job satisfaction,

presented very well and, because I can trust the source, I have referred to it on

working conditions, and the personnel evaluation system, andmany occasions. Additionally, the “Weekly Message” contains detailed information

have implemented various initiatives based on results.

that is organized by the number of months since birth and geared toward a return to

Employee awareness surveys provide important information for

the workplace, so it’s helpful in encouraging one to naturally think about steps for

identifying organizational and human resource management

going back to work. In the remaining six months before I go back to my job, I intend

issues. Among other things, employee opinions are used forto make use of the online resources for returning to work.

management direction to gauge the extent to which the present
human resources system has been accepted, assess the

Respect for Human Rightsof my childcare leave. The program’s website has

which has a significant impact on customer satisfaction.

year, so, with the addition of the New Year’s
holiday, I took about three weeks off for childcare

Human Rights Education in the Workplaceleave. At first, I thought I would be able to relax

The T&D Life Group promotes understanding of humanat home, but, as it turned out, my son simply

rights by educating employees on matters like sexual

wouldn’t go to sleep and, when he finally did, hewould wake up crying in the middle of the night.
There was an endless stream of things I had to
do to take care of him and I was up nearly 24

Mr. Tsuyoshi Matsunaga

harassment, and discrimination

Support Staff for TKC Agents
Tokyominami TKC Agency
Management Branch
Daido Lifeagainstthepeoplewithdisabilities and certain groups ofJapanese originating fromhours a day. In that sense, I felt like being at work would be easier and got

discriminated communities

a very real sense of the difficulty of raising children. On the other hand, I

called dowa issues. Group

was able to spend precious time with my wife and child, began to really feelcompanies provide employees

like a parent, and gained a lot of other valuable things, as well. I’m also

and directors with at least twovery thankful for the sincere cooperation of my boss and coworkers. I thinkopportunities to further their

the three weeks during which I took childcare leave and struggled to takeunderstanding of human rights

care of my son will become a great memory for my family.

issues every year.

Initiatives to Improve Employee Motivation

management of this system, and evaluate employee satisfaction,
My eldest son was born in November of last

Taiyo Life Sexual Harassment andPower Harassment prevention posters

34

Respect for Human Rights

Reflecting the Opinions of Employees’ Unions

Voice of an Employees’ Union

The Group’s three life insurance companies each have their own

This union listens to what its members

independent employees’ unions and all three work to maintainhave to say and works to improvesound employee-management relations based on trust. The threelife insurance companies actively discuss with their employees’

working conditions and environments. It

unions a wide range of topics covering everything from businessalso actively works to keep its members

issues and policies, to salaries, working hours, holidays,

informed through “Scrum”, the union’s

personnel systems, benefits, and a whole host of other topics.
The management sides of the three life insurance companies
believe that true employee-management give and take realized
through honest participation in discussions will result in greater
employee motivation and the Company competitiveness.

in-house

Mr. Kenichi Suzuki
Union Leader
Daido Life Administrative
Employees Union

magazine,

and

other

communication channels. CSR isgenerally defined as “corporate social
responsibilities,” but I think focusing on

trust to be earned from society, rather than responsibilities tobe performed for society, is a more positive approach.
To earn the trust of society, companies must create value. And●

Employees’ Union recommendations realized,
Daido Life example

Shorter working hours
To encourage head office employees to quit working by 21:00, Daido Lifethe creators of that value are none other than employees.
Without employee satisfaction, there is no customer
satisfaction. I believe that in that sense, the very union

introduced its Limit 21, All Lights Out policy of automatically turning off allactivities that are aimed at increasing ES should also belights at 21:00 and its PC Forced Shutdown policy of automaticallyconsidered CSR activities.

shutting down all PCs used for operations at 21:00.

Time off promotion
To encourage employees to take vacation days, Daido Life introduced its
policy of having employees take two “anniversary days off” per year. As“anniversary days off” employees may freely designate their own or a

Respect for Human Rights

family member’s birthday, wedding anniversary, or other special day.

Voice of a Health Insurance Society

Health Insurance Society
insurance benefits to, and performance of health-related

independent health insurance society, which works to prevent

activities for, its members or beneficiaries. Beginning withlifestyle diseases, promote good health, and engage in otheractivities to help members manage their health.

fiscal 2007, we are also devoting significant time andPrincipal activities include coverage of costs to treat diseases

effort to activities aimed at preventing metabolicand injuries suffered by beneficiaries or union members andInitiatives to Improve Employee Motivation

The primary activities of this Society are the payment of

The Group’s three life insurance companies each has its own

their dependents; payment on childbirth, death, and otherbenefits; PR to increase awareness of how to use healthinsurance; regular issuance of an in-house magazine, payment

syndrome. To promote these activities, which are related

Ms. Sumie Matsuura
Health InsuranceSociety Officer
T&D Financial Lifeto the specified physical examinations and healthguidance that we will begin providing in the next fiscal
year, we have decided to send our in-house magazine,of subsidies for annual physical examinations; promotion ofcomprehensive medical examination guidance, and other examination information

cancer self-examinations; promotion of and payment of

directly to the families of employees rather than to the employees themselves to help

subsidies for lifestyle disease examinations for spouses;
sponsorship of personal health consultations with professional
health advisors; sponsorship of mental health consultations
with counseling firms; and the holding of health seminars.
The T&D Financial Life Health Insurance Society also operates
Atami Country House which is a recreation facility for use byunion members, their families, retirees, and the employees anddirectors of other Group companies.

35 T&D Life Group CSR Report 2007

ensure that members undergo all of the examinations they should. We are also strongly
emphasizing that family members, too, can use services including the 24-hour-a-day
health consultation service that allows them to discuss their concerns with doctors andnurses. As an additional effort to prevent the onset of lifestyle diseases, we will begin
providing diet and other health improvement advice in fiscal 2008. This service will
target those whose examination results indicate that lifestyle changes are needed.

Employment of people with disabilities

premiums calculated using mortality and accident rates determined

The Group’s three life insurance companies endeavor to create

based on a law of large numbers. Life insurance companies do notbetter workplaces that accommodate the people with disabilities

allow people to purchase policies regardless of their circumstances;and had a combined employment rate of people with disabilities

to maintain the fairness of the life insurance system, people whose

1.85%, equating to 179 people, as of the end of March 2007.

expected mortality rates or insurance accident rates exceed certain
levels are either rejected or permitted to become insureds only

Voice of an Employee

under certain additional conditions such as application of special
premiums, etc.

It was 19 years ago when I first came into contact

The T&D Life Group respects the human rights of customers andwith the Company, which was then known as Tokyo

develops and sells a wide variety of insurance products meeting aLife, at a group interview for the physically disabled.

wide range of customer needs, health conditions, gender,

Though I didn’t fit the qualifications for the kinds ofenrollment ages, etc.

people the Company was looking to hire on thatday, I was unrelenting in expressing my fervent
desire to work for the Company and was eventually
hired. I think my desire to work for a company in

Mr. Hisao Kobayashi
Personnel and Administration Div.
Personnel and Administration Dept.
T&D Financial Lifethe financial industry was particularly strong

because my older brother was doing so. Now, my work consists of activities
like managing various types of reporting form and furniture and fixtures,
preparing budget information, and managing budgets. Having a congenital●

Examples of insurance products

Taiyo Life
Yasashii Hoken, a non-selective-type medical insurance for those whohave previously been hospitalized or had surgery, or are currently
receiving outpatient care, and Kisei Kanwa, which offers more coverage
options and can be purchased with a simple disclosure of health status.

Daido Life
Term life insurance for people with diabetes or high blood pressure,and special discount rider for especially healthy people (smokers
and non-smokers).

hearing impairment, I had some frustrations in the beginning, but coworkers
helped me by, for example, using sign language and writing notes, and I

March 31, 2006 March 31, 2007
Employment Rate of people
with disabilities (Note 1)

1.90%

1.85%

No. of Employees Taking Maternity Leave

124

137

No. of Employees Taking Childcare Leave

91

132

Protection of Personal Information
The Group’s three life insurance companies have formulated their
Personal Information Protection Declarations or Privacy Policy andinformation system support company, properly uses and strictly
protects various kinds of data, including personal information.

Male

−

18

Female

−

114

6

6

Male

−

1

Female−5No. of Employees Taking Nursing Care Leave

disclosed them through their website and other channels.
Additionally, T&D Information Systems, as the T&D Life Group’s(Individual employees)

Avg. No. of Paid Vacation
Days Taken (Note 2)

11.0 days

10.2days(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.

T&D Information Systems acquired the Privacy Mark certification
awarded to companies that properly protect personal information in

Employee Statistics

Privacy markThe Fairness of Life Insurance andRespect for Human Rights
Life insurance is a mutual assistance system in which costs related
to insured deaths, hospitalizations, nursing care, etc. are covered byPeople HiredMarch 31, 2006 March 31, 2007 Fiscal 2005 Fiscal 2006
Total No. of
Employees

21,234

20,147

4,897

Male

4,636

4,587

409

394

Female16,59815,560

4,488

3,859

3,739

In-House Sales
Representatives

IS510866／ISO27001(Individual employees)

Employees on Staff

May 2005, and won the ISO27001 information security
management system certification in March 2007.

Respect for Human Rights

professional challenges by reading a lot of books and improving my job skills.

Workplace Environment Data

4,253

13,873

12,842

4,438

Male

1,056

938

219

171

Female12,817

11,904

4,219

3,568

6,172

6,267

426

472

Male ( ) Managers

3,580 (1,889) 3,649 (1,896)

190

223

Female ( ) Managers

2,592 (

236

249

193

241

Office Workers

Career-track Employees45) 2,618 ( 111)

3,594

3,772

Regional Career-track
Employees

651

663

80

88

General Employees

1,881

1,787

153

140

Customer Service staff

1,189

1,038

33

42

Initiatives to Improve Employee Motivation

gradually got used to my job. Looking toward the future, I plan to take on new36

Communication

Pursuing Proactive Communication Activities
Pursuing Proactive Communication
Activities

IR Activities

The T&D Life Group pursues proactive communication

principles of timeliness, fairness, and accuracy, and works toactivities and works to ensure that its disclosure activities result

provide continuous, straightforward information on the Group’s

in the provision of straightforward information to customers,

management and finances. More specifically, it performs results

shareholders, other investors, and all other stakeholders.

briefings for domestic and overseas investors, holds results

Each Group member engages in newspaper, magazine,

teleconferences, visits key domestic and overseas institutional

television, radio, and other PR activities to enhance its company

investors, and actively engages in discussions with securities

image and promote products.

analysts. It also regularly provides management with valuable

Furthermore, T&D Holdings and the three life insurance

information received from investors through IR activities ascompanies have formulated Disclosure Rules (Note) and work to

feedback.

T&D Holdings engages in proactive IR activities based onachieve information disclosure that, through its proactiveness,
results in transparent 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 inGroup.
Each Group member issues disclosure materials on its
management policies, business performance, and other matters,
posts product and service information, company news and otherinformation on its website, and responds to individual requests
for information.
T&D Holdings informs its shareholders, approx. 323,000 as ofResults briefing for the fiscal
year ended March 2007

the end of March, 2007, of the status of Group operations andNikkei Inc. sponsored IR fairother matters twice a year, June and December throughCommunication

shareholder news bulletins. The three life insurance companies
deliver to each policyholder a Policy Information Notifications

T&D Holdings devotes significant time and effort to theannually to help ensure that they confirm the status of theirinterests of individual investors as well by, for example,

coverage and other policy details.

participating in IR fairs and posting a broad range of Group
information on the IR section of its website. T&D Holdings has
improved this IR site with an easier-to-use, more convenient(Note) T&D Holdings has prepared and disclosed its Basic Disclosure Stance,
which is rooted in its Disclosure Rules.

design, and simple, straightforward wording. As a result of
these efforts, T&D Holdings was selected by Daiwa Investor
Relations Co., Ltd. in April 2007 as one of the 296 bestcompanies for Internet IR sites. (Note)

Pursuing Proactive Communication Activities(Note) Daiwa Investor Relations Co., Ltd. reviewed the IR sites of the 1,849 primarylisted companies between March 6 and April 11, 2007 and announced the296 companies it believes have the best Internet IR sites.

Excerpts from IR Policy

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
Daido Life corporate image poster(Advertising personality: Ms. Manami Honjo)

37 T&D Life Group CSR Report 2007

Communications with Stakeholders

The President, Haruo Kuramochi,

Daido Life builds partnerships with organizations of tax

reported on Daido Life’s businessaccountants and Certified Public Accountants in creating a

activities, covering topics like:structure for selling various benefit systems to the clients of the1) Current status with regard to themembers of these organizations. These organizations and theinsurance claim & benefit

TA and CPA agents are key Daido Life stakeholders.

payments, and future initiatives

Accordingly, Daido Life holds meetings with them those whoin this regard

act as the agents and sponsors discussion groups where recent
developments at Daido Life can be reported and meeting

2) Actions taken in response to
Voices of Customers

participants can express their views on Daido Life’s operations.

3) Internal management enhancements

Following is a description of what took place at the July 12,4) Fiscal 2006 business results

2007 Daido Life Business Operation Report Meeting.

5) Customer service

Haruo Kuramochi
Representative Director
and President of Daido Life

6) Social contribution and othersuch activities■ Fiscal 2007 Daido Life business operation

The Executive officer, Minoru

report meeting

Kudo, then provided a summary of

Fifty-three tax accountants and Certified Public Accountants,

the achievements of projects

all of whom are executives of the TKC National Federation

undertaken in cooperation with the(Note) , a registered Daido Life agent, participated in thisTKC National Federation.

meeting, which was also attended by 12 representatives of

Toward the end of the meeting,

Daido Life, including its Representative Director and President,

Ms. Emi Osono, an Associate

Haruo Kuramochi.

Professor at Hitotsubashi University’s Graduate School of

Minoru Kudo
Executive officer of Daido LifeInternational Corporate Strategy, gave the memorial lecture
titled, “Corporate Strategy in the Future.”accounting clients. The TKC National Federation is Japan’s largest
organization network of professional accountants or tax accountants
and Certified Public Accountants.

Analyst’s Comment
The development of disclosure practices has resulted

and complex information on a company’s performancein the reporting of an enormous amount of information

and activities to shareholders, consumers, employees,

by companies. Furthermore, with the recent focus on

and other stakeholders has increasingly taken on

corporate governance and compliance, as well as

great importance. T&D Holdings has maintained aenvironmental considerations and other factors, thedialogue with its shareholders and disclosed

activities expected to companies have not only

information on its performance and activities to various

become more diverse but also more sophisticated andstakeholders via its CSR report and other channels.

complex. One could say, therefore, that the role ofMoving ahead, I expect it to reinforce these activities

clearly and accurately communicating sophisticatedthrough various opportunities.

Mr. Mitsumasa Okamoto

Pursuing Proactive Communication Activities

realization of just taxation and the ongoing prosperity of taxation andCommunication(Note) The TKC National Federation was created to contribute to the

CMA Senior Securities Analyst
Nomura Securities Co., Ltd.

38

Contributions to Regions and Societies

Activities as a Good Corporate Citizen
Social Contribution Activities of the
T&D Life Group■ Friends of Taiyo Life Goodwill Circles

Friends of Taiyo Life Goodwill Circles was established in
December 2005 to support the social contribution activities of
employees and directors.

■ Social contribution activities the T&D Life

As of the end of March 2007, this organization had 8,679

Group undertakes as a good corporate citizen

members, consisting of the employees and directors of Taiyo

As a member of society, it is only natural that a company

Life and its affiliates. Every month, members donate amounts

undertakes activities to contribute to society. Based on theequal to the last two digits of their take-home pay or amounts

management philosophy of aiming to be a corporate group that

equal to multiples of 100 yen, up to a total of 1,000 yen.

benefits people and society by creating value under the motto

Examples of Goodwill Circle activities undertaken to date“Try & Discover,” the T&D Life Group actively undertakes a

include nationwide clean campaigns and local contribution

broad array of social contribution activities through Group

activities by branches or other group units. For the future,companies and foundations, the volunteer activities of

however, there is a desire to engage in more locally focused

employees and directors, and other means, too.

contribution activities and to actively support environmental
protection activities in cooperation with NPOs or otherorganizations. To help bring that about, the quarterly Goodwill■ 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 2006, 78 T&D Life

Circle Associates newsletter is being distributed at the head
office, branch offices, and affiliates to explain theorganization’s activities and get more employees and directors
interested in participating.

Group employees donatedblood at the Shiodome head
office.

Social Contribution Activities of Daido Life

Individual Group members

Activities as a Good Corporate Citizen

Contributions to Regions and Societies

also pursued their own
blood donation activities.
Blood donation activities at the
Shiodome head office■ Support for the National Sports Games forthe Disabled
Daido Life provided special support for the Sixth NationalSports Games for the Disabled named Nojigiku Hyogo Games

Social Contribution Activities of Taiyo Life

held in Hyogo Prefecture in October 2006. This support
included a contribution of 100 million yen in financial support
and the efforts of numerous employees and directors who■ Nationwide clean campaign

worked as volunteers at the games. The Company also set up

Wanting to contribute to its local community as a member ofthe Daido Life Corner in the Fureai Plaza as a place where

the community, Taiyo Life began in 1982 to clean the areas

athletes and supporters from across the country could comesurrounding the Taiyo Life head office once a year. In 2004,

together and enjoy each other’s company playing games andbranch offices throughout the nation began cleaning the areas

participating in various events.

surrounding their buildings. In fiscal 2006, totaling 6,408
people of employees and family members helped to clean areas
around Taiyo Life’s head office, subsidiaries, affiliates, andbranch offices.

Cleaning up around the Hamamatsu
Branch Office

39 T&D Life Group CSR Report 2007

Sixth National Sports Games for the Disabled named Nojigiku Hyogo Games■ Donations suppor ting open lectures at■ The Daido Life Foundation

universities

The Daido Life Foundation

As part of the celebration of its 100th anniversary, Daido Life

was established in 1985 inbegan in fiscal 2002 to sponsor open university lectures bycelebration of the Company’s

donations, which took place over a period of five years. Through80th anniversary. The purpose

these lectures, and with the cooperation of the universities whereof the Foundation is tothey are held, Daido Life offered managers of SMEs

promote mutual international

opportunities to acquire management and business knowledge

understanding by holding or sponsoring cultural exchanges

and skills. In fiscal 2006, open lectures were held at eight

between Japan and other countries, and to contribute to theuniversities, including Hosei University, Meiji University,internationalization of Japan. The Foundation’s activities to date

Yokohama National University, Waseda University, Ritsumeikan

have met with high praise and been formally recognized with

University, Kansai University, Nanzan University, and Fukuoka

prizes like the Japan Mecenat Award in November 1995 and the

University. For those SME managers unable to attend an open

Japan Foundation Special Prize in October 2000.

lecture, Daido Life has also produced video lectures useful for

The primary activities of the Foundation include (1) Awardbusiness management, which have been viewed by many SME

Program: presentation of the Daido Life Foundation Award for

managers through the cooperation of Daido Life branches andArea Studies; (2) Translation and publication activities:

tax accounting firms throughout the country.

including the translation and publication of modern Asian
literature into Japanese and Japanese books into Asian
languages; and (3) Educational support activities: scholarshipprograms, donations of Japanese books, and support for schools.

■ Taiyo Life Himawari Welfare Foundation● Award for Area Studies

The Taiyo Life Himawari Welfare Foundation was established inWith the support from the academic
societies, the Daido Life Foundation has
been presenting its Award for Area Studies

The Foundation works to improve social welfare. Since its

and its Special Award to researchers whoestablishment, it has been concentrating mainly on projects for thehave performed outstanding work in the

improvement the welfare of the elderly, and, in recent years, has

field of area studies. It has also been

also been devoting significant attention to assisting projects aimed

presenting its Special Prize for Area Studies
for distinguished accomplishments in

Presentation ceremony

at improving the welfare of the disabled. To date, the Foundation

promoting mutual international understanding. All of these prizes are annually presented

has awarded 1,299 grants totaling 983.82 million yen.

since 1986, to support overall area studies in the global level.

● Fiscal 2006 grants

Project grants

Research grants

Grants to project of volunteer
groups and organizations
working to benefit the elderly
at home and the disabled

Grants for research andsurveys regarding lifestylediseases and the health andwelfare of the elderly■ Daido Life Welfare Foundation

The Daido Life Welfare Foundation was established in 1974 tohelp promote health maintenance and social welfare in Japan.

● Regional Health and Welfare Research Subsidy

Project grant example

Assistance to a Classroom for the Vocally Impaired
A grant was provided to Koe wo Tanoshimu, an organization headed by
Mr. Tadanori Shimada, which dedicated to helping those with a verbal

The Daido Life Welfare Foundation provides grants for research onregional health, medical, and welfare performed by people also
engaged in health or welfare activities at the grassroots level.

communication handicap freely use their voices and enjoy choral singing.

Company Workers Volunteer Activity Subsidy

At Koe wo Tanoshimu, participants help each other to experience the joy

Since fiscal 1992, the Daido Life Welfare Foundation has been providing grantsof choral singing. On October 15, 2006, they demonstrated the results of

to Company workers who use thetheir efforts at Dreamers Stage ’06 held at Yokohama Sports and Culture

weekends or other free time to engage

Center for the disabled.

in activities at the local community

There, they sang sevenlevel. Examples of targeted volunteer

songs, including Hana noactivities include (1) Activities in

Machi, meaning flower town,

support of the elderly; (2) Activities inand Beethoven’s Ode to Joy,

support of the disabled; and (3) Social

together with a noted

activities aimed at supporting theAwards ceremony

emotional health of children. All targeted activities must be free of charge. As ofsoprano singer making acameo appearance.

Contributions to Regions and Societies

1984 to mark the 90th anniversary of the founding of Taiyo Life.

Activities as a Good Corporate Citizen

Activities of Foundations

Recital at Rapport Art Spacethe end of fiscal 2006, the Daido Life Welfare Foundation had awarded 2,625 ofthese grants, worth a total of 1,348.69 million yen.

40

Global Environment Protection

For a Sustainable Global Environment
Global Environmental Protection Initiatives

Signatory to the Principles for Responsible
Investment■ Establishment and implementation of the

In March 2007, Taiyo Life became the first Japanese life insurance company

T&D Life Group Environmental Policy
The T&D Life Group is pursuing various activities aimed at

to sign onto the Principles for Responsible Investment (PRI) being advocatedby the United Nations Environment Programme Finance Initiative.

achieving thorough employee and director awareness of the
T&D Life Group Environmental Policy, established in April■ Cool Biz/Warm Biz cooperation

2006 to clearly present the T&D Life Group’s position on the

Cooperating with the government’s Cool Biz and Warm Biz

environment, and lowering the Group’s environmental burden.

initiatives, and as a measure to help stop global warming, theIn addition, the Group has developed Green Purchasing

T&D Life Group sets thermostats at 28°C from June throughStandards and gives the highest priority to purchasing

September, and 20°C from November through March.

environmentally friendly products whenever possible.

T&D Life Group Environmental Policy
Acknowledging the importance of environmental issues,
the T&D Life Group will carry out business activities withfull awareness of the importance of environmental
concerns and will give sufficient consideration to global
environmental protection based on the T&D Life GroupCSR Charter. The Group will achieve sustainable growthalong with the society while fulfilling the public mission oflife 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 businessactivities.

2007 Cool Biz poster

2006 Warm Biz poster■ Forest of Taiyo Life afforestation activities

In March 2006, Taiyo Life, as part of its efforts to secure green resources
and make other contributions for the benefit of society and the environment,

Global Environment Protection

1. Environmental Conservation Efforts
through Business Activities

For a Sustainable Global Environment

made use of the Forestry Agency’s Corporate Forest System to establish the

3. Compliance with Environmental Laws

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 orenergy consumption and waste emissions, we will work
toward reducing environmental impact by conserving
energy or resources, recycling resources, and promoting
green purchasing.

We will observe all environmental laws and regulations.

Forest of Taiyo Life in Nasushiobara City, Tochigi Prefecture.
This forest’s environmental contribution in the form of CO2 absorption
comes to 23.6 tons, according to Forestry Agency estimates, and timberculled from it is put to good use in manufacturing printing paper. Taiyo Life
has also been selling to its employees and directors chopsticks
manufactured with culled timber and timber waste under the Waribashi
Project inaugurated in September 2006. In November 2007, Taiyo Life took
the next step and established the Taiyo Life Kutsuki no Mori in Takashima
City, Shiga Prefecture.

Voice of a Participant in Afforestation Activities
Our family of three participated in the autumn

4. Promotion of Environmental AwarenessRaising Activities

afforestation activities. It was the first time for us

We will raise environmental awareness among all
Group members through awareness-raising activities topromote environmental protection initiatives.

5. Continuous Improvement in Environmental
Initiatives
By setting environmental objectives and reviewing
them regularly, we will endeavor to continuously
improve our environmental performance.

to do so and I was a little bit worried, but, withthe guidance of the District Forest Office andvolunteers, we were able to participate and havea good time. As a family, we are looking forward

Ms. Kiyomi Shirotsuki

to seeing the Nikko Maple we planted grow.

Omori Branch

Through this experience, we came tounderstand the need for forest thinning, and my

All members of the T&D Life Group are notified of this environmental
policy, which is also publicly disclosed.

son, who likes to do things with his hands, had a great time using a saw to
help cut back unwanted growth. The work may have been a little bit
difficult for him, but after dinner there was a gathering at which we
enjoyed learning more about forests and that capped off a very goodexperience. I want to bring my family back again to refresh ourselves.

41 T&D Life Group CSR Report 2007

■ Production of environmentally friendly novelty goods

Setting of Environmental Objectives

Based on the “3.9% CO2 Reduction ‘Kizukai’ Movement”

In the past, environmental data was gathered and disclosed in

aimed at promoting domestic forests and using them to absorb

connection with work aimed at lowering environmental burden.

3.9% of CO2 emissions in achieving

And it has been decided that beginning in the second half ofthe domestic CO2 reduction of 6%2007 quantitative targets is set and periodically revised for theagreed upon in the Kyoto Protocol,

following three items in an effort to achieve ongoing

T&D Financial Life has produced

improvements.

“Tsubaki no Koeda Pens,” ballpoint

Environmental Objectives

pens made of domestic culled trees,

Item

Objectives

to use as novelty goods forElectricity Consumption
at Shiodome Head Office

0.6% year-on-year reductions to achieve an
average 2% or greater reduction comparedto fiscal 2006, over the fiscal 2008-2012 periods.

Use of Copy and Printing Paper
for Administrative Purposes

1.3% year-on-year reductions to achieve a
7% or greater reduction compared to fiscal
2006, in fiscal 2012.

Green Purchasing Ratio

Reliance on environmentally friendly
products for 95% or more of office supplies.

distribution to financial institution
Pen made by small branchof camellia

agents.

Environmental Communications
The T&D Life Group is working with the NPO, Associates of
the Earth, which produces the Japanese version of “Our Planet”
and “Tunza” published by United Nations Environment

Use of paper for administrative purposes and green purchasing ratio is of T&D Holdings.

Trend in CO2 Emissions (Graph1)

Trend in Electric Consumption Amount (Graph2)(Unit: ton)

(Unit: thousand kWh)

12,00011,332

10,935Programme, to deepen understanding of environmental issues
by distributing these two publications to Group companies,

20,00019,34018,796

10,64010,00018,0008,000

16,0006,000

14,00018,456

primary and middle schools, public libraries, and other entities.
Additionally, through seminars for Group company executives
and e-learning materials for employees, the T&D Life Group is
working to achieve broad understanding of environmental
2004

2005

2006

Trend in Water Consumption (Graph3)
3(Unit: ton)

100

250

83

81

2006

223

150

100

194
80

200

75

(Fiscal)(Unit: million sheets of paper)

196

72

2005

Trend in Paper Consumption Amount (Graph4)(Unit: thousand m )Related website

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

2004(Fiscal)

54
47

46

60

50

Voice of an Environmental NPO
25

100

40

50

20

Global Environment Protection

problems.

2004

the Taiyo ni Hoero! television series of 30 years

2005

2006

2004

(Fiscal)2005

ago when they hear my name. A later television
Trend in Amount of Waste Generation and Recycle (Table)

program, which visited out-of-the-way places
over its run of nearly 10 years, caused me tochange the way I thought about the earth andthe environment. Now, through an NPO, I work
together with companies and volunteers to help

(Unit: ton)

Fiscal 2004 Fiscal 2005 Fiscal 2006

Mr. Jun Miyauchi
NPO “Associates of
the Earth” Chairman

Based on the idea of learning more about the earth and people, we are

UNEP education activities. We also worked to communicate the growing

722

783

Recycled Amount

602

651

506

Recycle Ratio

83%

83%

84%

Finally
Disposed Amount

120

132

99

Generated Amount

348

522

294

Paper Waste

solve global environmental problems.

promoting greater understanding of environmental problems throughGenerated Amount

Waste otherthan Paper

605

Recycled Amount

41

177

61

Recycle Ratio

12%

34%

21%

Finally
Disposed Amount

307

344

233

2006

(Fiscal)For a Sustainable Global Environment

I think many people will recall the detective inseriousness of environmental problems to large numbers of people
through UNEP “Focus on Your World” World Environment Photographic
Exhibitions in Asia’s seven international airports in June 2007. For the
future, we are considering tree-planting and other activities.

42

Third Party Opinion

Ms. Mariko Kawaguchi

Third Party Opinion

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

At a time when mutual companies were common in the life insurance

perspectives, which, as of August 2007, have been adopted by over 230

industry, the T&D Life Group was one of the first to convert its life

institutional investors with $10 trillion in total assets throughout theinsurance companies into corporations and establish a holding

world. In principle, becoming an ESG signatory means pledging thecompany. This governance-enhancing initiative increased

practice of investment based on evaluations of investees’

management’s awareness of the need for transparency and the outcome

environmental, human rights, labor, and other track records, in additionof that can be seen in proactive stances toward communications withto traditional finance analysis. In passing, I would like to note thatstakeholders. This year was the third year for me to review the T&D“responsible investment” is based on the philosophy that it is theLife Group report and every time I have done so I have come away

responsibility of investors to use the power of investment to help solvewith the impression that this company group has a very strong

environmental and social problems.

customer orientation. It is also obvious to me that CSR initiatives have

Life insurance related investment is mainly long-term investment. In

become more consistent among the individual members of the Group.

the case of long-term investment, not only recent performance trends

The present report is slightly shorter than the previous one, but it

but also long-term strategies, including approaches to environmental,

devotes five pages to descriptions of conditions, and actions taken, atlabor, and other issues, the quality of employees, the quality of

the Group’s three life insurance companies over the past five years

management, and other factors are critical in making important

regarding the problem of insufficient insurance claim payments.

investment decisions. The responsible investment concept, therefore, isAmong measures to prevent a recurrence of that problem, the reportconsistent with such long-term investment. Presently, insurance

devotes particular attention to making policy details simple andbenefits and annuities account for 26% of the personal financial assets

straightforward. Recently, fierce competition has resulted in theof Japanese individuals. And it is commonly the case that, even if aincreasing attachment of unnecessary product features, not only inpolicyholder understands the terms of his/her own coverage, he/she isinsurance but in other industries, as well. With regard to financial

unaware of the ways in which premiums are being invested. Recently,

products in particular, a great deal of importance is placed on self-

however, at the grassroots level there has been a slight increase in

responsibility, so ease of understanding is extremely important. Even

individuals taking responsibility for their own investments. It isafter carefully reading them, many people who are not insurance

conceivable, therefore, that in the future there will be an increasing

experts cannot understand explanations of insurance policies withnumber of individuals who, when they purchase insurance, arenumerous riders, so measures that take insurance back to the basics andinterested in not only the terms of policy coverage but also how funds

help avoid confusion are welcome. It is my fervent hope that suchare invested. Wouldn’t it be nice if insurance companies operated undermeasures will add significant momentum to the approach of offering

the philosophy of building competitiveness with simple,

products that are truly in the best interest of customers.

straightforward insurance products and socially responsible investment.

In explaining what is done for the benefit of customers, information

If that comes to pass, I would certainly want global environmental

provided as “voices of customers” has been enhanced. While last year’s

problems to be a focus of attention.

report included such information only for Taiyo Life, this year’s report

Global warming is now a critical international political and economic

provides it for all three life insurance companies, showing specificissue, and the most pressing responsible investment perspective. T&D

examples where improvements have been made, and demonstrating

Asset Management has started to manage an environmental fund. Thisthat the customer-focused PDCA cycle is beginning to work.

fund is limited to investments in companies with environmental

Regarding employee satisfaction initiatives, all three life insurance

businesses and it is expected that it will have the indirect impact ofcompanies have won certifications under the Law for Measures tosupporting the development of solutions to environmental problems by

Support the Development of the Next Generation and, in view offocusing funds on businesses addressing these problems. In addition tofactors like the gradual increase in the number of employees taking

this sort of themed investment, it is hoped that the T&D Group’s threechildcare leave, it appears that all three are making steady progress inlife insurance companies will adopt responsible investment thatcreating better workplaces for employees. Regarding consideration forincorporates evaluations of environmental friendliness in investment

the rights of customers when purchasing new policies, I citeddecisions. What I would like these companies to do now is to focus

shortcomings for last year’s report, and this year’s report includes atheir attention on considerations of environmental friendliness indiscussion on this matter.

existing ordinary investment operations as well. If life insurance,

Concerning investment operations, which I pointed out as an areaannuity, and other long-term institutional investors would requireneeding improvement in last year’s report, T&D Holdings, Incevaluations of environmental friendliness in investment decisions, thePresident, Naoteru Miyato mentions in his message that Taiyo Life waschances of stopping global warming and realizing global sustainability

the first Japanese life insurance company to sign on to the Principles ofwould be increased. It is my fervent hope that the T&D Life Group will

Responsible Investment. This is a declaration that investment processes

become a leader in the field of responsible investment, just as it did inwill incorporate the Environmental, Social, and Governanceconverting its life insurance companies to corporations.

43 T&D Life Group CSR Report 2007

This logo signifies membershipin Sustainability Forum Japan.
It does not indicate that
Sustainability Forum Japan has
approved the contents of thisreport.

Comparative Table on GRI Guidelines

1

Indicator

1.1

Statement from the most senior decisionmaker of the organization (e.g., CEO,chair, or equivalent senior position) about the relevance of sustainability to theorganization 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 organization2
Primary brands, products, and/or services
21-22,27-28
Operational structure of the organization, including main divisions, operatingcompanies, subsidiaries, and joint ventures
2,45
Location of organization’s headquarters
2
Nature of ownership and legal form
2
Markets served (including geographic breakdown, sectors served, and typesof customers/beneficiaries)
2,21-22
Scale of the reporting organization
2,17
Significant changes regarding size, structure, or ownership
18

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
1
3.1
Date of most recent previous report (if any)1
3.2
Reporting cycle (annual, biennial, etc.)
1
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
3.6
facilities, joint ventures, suppliers)
1
State any specific limitations on the scope or boundary of the report1
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
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 oversight13
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
13
Mechanisms for shareholders and employees to provide recommendations or
4.4
direction to the highest governance body
13
Processes in place for the highest governance body to ensure conflicts of
4.6
interest are avoided
13
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
11-12,20
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 orcompliance with internationally agreed standards, codes of conduct, andprinciples
14,16,20,41
Processes for evaluating the highest governance body’s own performance,
4.10
particularly with respect to economic, environmental, and social performance
14,37
Commitments to External Initiatives
Explanation of whether and how the precautionary approach or principle is
4.11
addressed by the organization
16,31-32
Externally developed economic, environmental, and social charters,
4.12
principles, or other initiatives to which the organization subscribes or endorses
41
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.
1
Stakeholder Engagement
List of stakeholder groups engaged by the organization
11
4.14
Approaches to stakeholder engagement, including frequency of engagement
4.16
by type and by stakeholder group21-26,37-38
Key topics and concerns that have been raised through stakeholder
4.17
engagement, and how the organization has responded to those key topics
and concerns
5-9,21-26

5Management Approach and Performance Indicators

Economic Performance Indicator■ Aspect: Economic Performance
Direct economic value generated and distributed, including revenues,
EC1
operating costs, employee compensation, donations and other community
investments, retained earnings, and payments to capital providers andgovernments
17,39-40
Financial implications and other risks and opportunities for the organization’s
EC2
activities due to climate change
16■ 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
39-40

Item

Indicator

Pages in this report

EC9

Understanding and describing significant indirect economic impacts, including
the extent of impacts
17-19
Environment Performance Indicator■ Aspect: Energy
Direct energy consumption by primary energy source
42
EN3
Energy saved due to conservation and efficiency improvements
42
EN5■ Aspect: Water
Total water withdrawal by source
42
EN8■ Aspect: Biodiversity
Habitats protected or restored
41
EN13Strategies, current actions, and future plans for managing impacts on
EN14
biodiversity30■ Aspect: Emissions, Effluents, and Waste
Total direct and indirect greenhouse gas emissions by weight
42
EN16
Initiatives to reduce greenhouse gas emissions and reductions achieved
EN18
41-42
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 region36
LA1
Benefits provided to full-time employees that are not provided to temporary or
LA3part-time employees, by major operations
33-36■ 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
35
Health and safety topics covered in formal agreements with trade unions 35
LA9■ Aspect: Training and Education
Programs for skills management and lifelong learning that support theLA11continues employability of employees and assist them in managing career
endings
33
Composition of governance bodies and breakdown of employees per category
LA13
according to gender, age group, minority group membership, and otherindicators of diversity
36
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
39-40■ Aspect: Corruption
Percentage and total number of business units analyzed for risks related toSO2corruption
16
Percentage of employees trained in organization’s anti-corruption policies andSO3procedures
31-32
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
24-26
Total number of incidents of non-compliance with regulations and voluntary
PR2
codes concerning health and safety impacts of products and services, by typeof outcomes
5,7,9■ Aspect: Product and Service Labeling
Practices related to customer satisfaction, including results of surveys
PR5
measuring customer satisfaction
24-26■ Aspect: Marketing Communications
Programs for adherence to laws, standards, and voluntary codes related toPR6marketing communications, including advertising, promotion, and sponsorship23

6

Financial Services Sector Supplement

Corporate Social Responsibility (CSR) Management
CSR policy
12
CSR1
CSR organization
14
CSR2
Management of sensitive issues
5-9
CSR4
Stakeholder dialogue
14,24-26
CSR6
Internal Social Performance
Internal CSR policy
12
INT1
Staff turnover and job creation
36
INT2
Employee satisfaction
36
INT3
Performance to Society
Charitable contributions
39-40
SOC1
Economic value added
17-19
SOC2
Investment Banking
Investment policy (socially relevant elements)
30,41
IB1
Transactions with high social benefit
30
IB3
Asset Management
Asset management policy (socially relevant elements)
30,41
AM1
SRI oriented shareholder activity
30,41
AM3
Insurance
Underwriting policy (socially relevant elements)
36
INS1
Customer profile
21-22
INS2
Customer complaints
24-26
INS3
Insurances with high social benefit
36
INS4
Environmental Performance Indicators
Description of environmental policies applied to core business lines
41
F1
Description of process(es) for improving staff competency in addressing
F5
environmental risks and opportunities
42
Description of interactions with clients/investee companies/business partners
F7
regarding environmental risks and opportunities
42

Comparative Table on GRI Guidelines

Item

44

The T&D Life Group’s Subsidiaries and Affiliates

T&D Holdings, Inc.
Company Name:
Date of Establishment:
Location of Headquarters:
Type of Business:

Capital Amount:
Number of Employees:
Accounting Auditor:
URL:
Group Members

T&D Holdings, Inc.
April 1, 2004
1-2-3 Kaigan, Minato-ku, Tokyo 105-0022, Japan
As both an insurance holding company and small-amount short-term insurance company, the T&D
Life Group engages in the following business activities.
● The management of subsidiary companies in accordance with the provisions of life insurance and other insurance business laws.
● Management of the T&D Life Group and its subsidiaries● All duties incidental to the above business
118.5 billion yen
108
Ernst & Young ShinNihon
http://www.td-holdings.co.jp/e/
As of March 31, 2007, 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.
■：Consolidated subsidiary ●：Equity method affiliate■ Insurance & Insurance related Businesses (7 companies)
Insurance Business

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

Insurance related
Businesses■ T&D Confirm Ltd.

http://www.toyohokendaiko.co.jp
http://www.dms-hp.co.jp■ Toyo Insurance Agency Co., Ltd.
■ Daido Management Service Co., Ltd.

■ Investment related Businesses (7 companies)
Investment Management■ T&D Asset Management Co., Ltd.

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.tdasset.co.jp
http://www.taiyo-life-lease.co.jp
http://www.taiyo-sinyo-hosyo.co.jp
http://www.aicapital.co.jp/intro.html● Alternative Investment Capital Ltd.
● AIC Private Equity Fund General Partner, Ltd.

The T&D Life Group’s Subsidiaries and Affiliates■ 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.

Calculation related■ Zenkoku Business Center Co., Ltd.

Businesses■ Nihon System Shuno, Inc.

http://www.td-system.co.jp
http://www.zbc-jp.com
http://www.nss-jp.com■ Public Corporations Taiyo Life Himawari Foundation
Daido Life Welfare Foundation
The Daido Life Foundation

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

For each Group company’s outline, please refer to the websites.

■ Examples of disclosure materials

Financial Disclosure
Report 2007

45 T&D Life Group CSR Report 2007

Annual Report

Taiyo Life
Communication Report

T&D Holdings’ Website
http://www.td-holdings.co.jp/e/

The T&D Life Group’s CSR related Activities

1974

Daido Life founded the Daido Life Welfare Foundation. To promote and enhance people’s health and social welfare, the Foundation granted
Regional Insurance Welfare Research Subsidy and Company Workers Volunteer Activity Subsidy, issued Health Brochures, held House
Nursing Training Seminars, etc. in the field of social welfare and public health

1984

Taiyo Life established the Taiyo Life Himawari Foundation. To implement social welfare project in commemoration of the Company’s 90th anniversary,
the Foundation carried out business and research on welfare of the elderly and the handicapped, granted subsidies to volunteer groups and NPOs, etc.

1985

Daido Life established the Daido Life Foundation. In commemoration of the Company’s 80th anniversary, the Foundation presented the Regional Research Award,
carried out translation and publishing projects and engaged in education assistance business of scholarships, donations of Japanese books to schools in South
East Asia, assistance to schools in other Asian countries, etc. to promote mutual understanding with other countries and internationalization of Japanese society.

1992

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 handicappedand Daido Life supported it every year it was held, through both financial assistance and the 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.

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.
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 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 forwithout 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.

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.

2006

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 Asset Management 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
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 theDevelopment of the Next Generation.
T&D Asset Management established an environmental fund focusing on sustainability.
The Group’s three life insurance companies disclosed the results of internal investigations of insurance claim & benefit
payments.

Afterword
This is the third edition of the T&D Life Group CSR Report. For this report, we

The Group’s awareness of the triple - social, environmental, and economic - bottom line

determined that the section titled, “The Results of the Examination of Insurance Claim &as the foundation of CSR is expressed on the cover of this report, which portrays theBenefit Payments and the Response in the Future” encompassed the most important

cohesiveness of the Group’s CSR activities in the image of a single, large heart.

information to be reported, and, accordingly, positioned it immediately after the Message

We respectfully look forward to your ongoing support.

The T&D Life Group’s CSR related Activities

health status.

from the Group’s President. We hope that this section will be read and understood in lightof the explanations of the Group’s ideas regarding CSR and its various CSR activities.

CSR Promotion Team, Public Relations Department, T&D Holdings

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

Published January 2008