Life Insurance Fact Book (2014)

Life Insurance Fact Book (214) The Life Insurance Association of Japan

Introduction The Life Insurance Fact Book summarizes key performance indicators of life insurance companies operating in Japan. We hope that this report will provide a better understanding of the life insurance business in Japan. Please note that the data of Japan Post Insurance has been included in the figures since fiscal 28; therefore, some figures show the data excluding Japan Post Insurance in order to maintain continuity with the previous data before its inclusion. In addition to this report, the LIAJ provides detailed statistical data of the life insurance market in Japan; please refer to such data as necessary.

Contents I Insurance Business Results 1 1 Individual Insurance 1 (1) New Policies 1 (2) Policies in Force 1 2 Individual Annuity Insurance 4 (1) New Policies 4 (2) Policies in Force 4 3 Group Insurance 6 (1) New Policies 6 (2) Policies in Force 6 4 Group Annuity Insurance 8 5 Medical Insurance 9 6 Lapses and Surrenders 11 7 Annualized Premium 12 8 Statistical Data by Gender, Age and Prefecture 13 (1) By Gender 13 (2) By Age 14 (3) By Prefecture 15 II Revenues and Expenditures 17 1 Insurance Related Income and Expenses 17 (1) Premium Income 17 (2) Insurance Benefits Paid 18 (3) Medical Benefits for Hospitalization and Surgery 19 2 Investment Income and Expenses 2 3 Operating Expenses 22 4 Basic Profits and Ordinary Profits 22 III Investment Results 23 1 Total Assets 23 2 Securities 24 3 Loans 25 4 Tangible Fixed Assets (Real Estate) 27 IV Liabilities and Net Assets 27 (Reference) Distribution Channels and Sales Force 28 Member Companies 29

I Insurance Business Results 1. Individual Insurance (1) New Policies The number of new policies for individual insurance (including converted contracts) was 18.99 million (96.5% y/y), and the amount of new policies (reflecting the net increase arising from the conversion) was 66,836 billion yen (93.7% y/y). [Figure 1] The number of new policies had been increasing since fiscal 28 due to strong sales of medical insurance and whole life insurance. However, in fiscal 213, the number of new policies decreased from the previous year for the first time in six years in reaction to strong sales in the last fiscal year prior to the reduction in the standard assumed interest rate. The amount of new individual insurance policies had been increasing for three successive years since it began to increase for the first time in 14 years; however, in fiscal 213, it decreased from the previous year. Among the number of new policies for individual insurance (excluding converted contracts), medical insurance ranked top (3.83 million, 26.6% of the total), followed by whole life insurance (3.37 million, 23.4%), term insurance (2.22 million, 15.4%), endowment insurance (1.66 million, 11.6%) and cancer insurance (1.39 million, 9.7%), with medical insurance and whole life insurance switching places from the previous year. [Figure 2] Among the amount of new policies for individual insurance (excluding converted contracts), term insurance ranked top (29,91 billion yen, 43.% of the total), followed by whole life insurance (14,525 billion yen, 21.5%), endowment insurance (5,379 billion yen, 7.9%), whole life insurance with interest-sensitive reserve fund (3,643 billion, 5.4%) and whole life insurance with term rider (2,452 billion yen, 3.6%). [Figure 3] (2) Policies in Force The number of policies in force for individual insurance was 143.88 million (15.8% y/y), and the amount of policies in force was 857,54 billion yen (99.5% y/y). [Figure 1] The number of policies in force increased for the sixth successive year due to the strong sales of new policies; meanwhile, the amount of policies in force has been decreasing due to the current trend of people increasing medical protection while reducing death protection. Among the number of policies in force for individual insurance, medical insurance ranked top (29.98 million, 2.8% of the total), followed by whole life insurance (29.1 million, 2.2%), cancer insurance (21.16 million, 14.7%), term insurance (16.52 million, 11.5%), endowment insurance (12.38 million, 8.6%) and whole life insurance with term rider (11.66 million, 8.1%). [Figure 4] Among the amount of policies in force for individual insurance, term insurance ranked top (22,811 billion yen, 25.7% of the total), followed by whole life insurance with term rider (174,333 billion yen, 2.3%), whole life insurance (146,586 billion yen, 17.1%), whole life insurance with interest-sensitive reserve fund (14,966 billion yen, 12.2%) and endowment insurance (4,547 billion yen, 4.7%). [Figure 5] Figure 1: New Policies and Policies in Force for Individual Insurance (Number: million, Amount: billion yen, Y/Y: %) New Policies Policies in Force Number Amount Number Amount Y/Y Y/Y Y/Y Y/Y 29 15.51 111.7 59,299 99.8 117.5 13.6 92,947 96.1 21 15.86 12.2 62,992 16.2 121.91 14.2 879,596 97.4 211 16.22 12.3 65,61 14.1 127.2 14.3 865,346 98.4 212 19.67 121.3 71,345 18.8 136.1 16.9 861,651 99.6 213 18.99 96.5 66,836 93.7 143.88 15.8 857,54 99.5 Below are figures excluding Japan Post Insurance. 29 13.47 112.5 53,39 98.9 112.7 12. 89,63 95.5 21 13.8 12.5 57,87 16.9 115.73 12.7 861,954 96.8 211 14.9 12.1 59,386 14. 119.19 13. 842,33 97.7 212 17.47 124. 64,829 19.2 126.14 15.8 833,17 98.9 213 16.76 95.9 6,276 93. 132.21 14.8 823,85 98.9 Note: The number includes converted contracts, and the amount reflects the net increase arising from the conversion. 1

(million) 16. 14. 12. 1. 8. 6. 4. 2. 12.17.55.64 1.26 3.38 1.72 1.24.51 2.36.7.4 Figure 2: Changes in Individual Insurance by Type (Number of New Policies) 12.77.42.72 1.35 3.37 1.75 1.18.46 3.3.6.39 13.39.35.66 1.56 3.35 1.78 14.89.71.64 1.42 1.74.5 2.14 1.23.31.34.51 3.53 3.87 3.64 3.83.6.28 14.4.62.56 1.39 1.66 2.22.39 3.37.9.23 Others Juvenile Insurance Cancer Insurance Medical Life Insurance Endowment Insurance Variable Insurance Term Insurance Whole Life with Interestsensitive Reserve Fund Whole Life with Term Rider Whole Life Insurance. Note: Excluding converted contracts (trillion yen) 8 7 6 5 4 3 2 1 62.9 1.4 22.1 6.6 6.2 9.5 1.4.4.3 5.4.5 Figure 3: Changes in Individual Insurance by Type (Amount of New Policies) 65.3 1.1 22.5 5.9 6.2 12.6 1.5.5.2 5.4.4 67.7 9.2 24.3 3. 2.6 8.1 3.9 15.1 1.4.3.2 5.7.4 73.2 9.9 31.4 17.4 1.3.1.2 5.6.4 67.7 1.4 29. 3.6 2.4 14.5 1.2.1.2 5.3.6 Others Juvenile Insurance Cancer Insurance Medical Life Insurance Endowment Insurance Variable Insurance Term Insurance Whole Life with Interestsensitive Reserve Fund Whole Life with Term Rider Whole Life Insurance Note: Excluding converted contracts 2

(million) 16. 14. 12. 1. 8. 6. 4. 2.. 117.5 8.55 5.16 18.88 22.5 9.13 12.5 8.7 12.89 1.45 Figure 4: Changes in Individual Insurance by Type (Number of Policies in Force) 121.91 8.7 5.44 19.29 23.83 9.92 12.41 8.17 12.64 127.2 8.8 5.66 19.84 25.53 1.78 1.45 1.45 12.4 7.8 12.81 136.1 8.9 5.88 2.54 27.78 11.6 14.32 7.58 7.51 12.29 1.47 143.88 8.7 6.3 21.16 29.98 12.38 16.52 11.66 18.32 2.64 23.16 26.42 29.1 1.51 Others Juvenile Insurance Cancer Insurance Medical Life Insurance Endowment Insurance Variable Insurance Term Insurance Whole Life with Interestsensitive Reserve Fund Whole Life with Term Rider Whole Life Insurance (trillion yen) 1, 92 Figure 5: Changes in Individual Insurance by Type (Amount of Policies in Force) 879 865 861 857 8 6 183 175 14 3 5 3 1 169 154 145 139 13 13 13 3 2 2 5 4 4 33 35 38 1 9 1 177 184 24 22 13 2 4 4 1 Others Juvenile Insurance Cancer Insurance Medical Life Insurance Endowment Insurance 4 2 144 139 125 112 14 234 218 213 194 174 Variable Insurance Term Insurance Whole Life with Interestsensitive Reserve Fund Whole Life with Term Rider Whole Life Insurance 11 19 12 135 146 3

2. Individual Annuity Insurance (1) New Policies The number of new policies for individual annuity insurance (including converted contracts) was 1.5 million (91.4% y/y), and the amount of new policies (reflecting the net increase arising from the conversion) was 8,3 billion yen (93.5% y/y). [Figure 6] In fiscal 213, both the number and the amount of new policies increased from the previous year due to the reduction in the standard assumed interest rate. Among the number of new policies for individual annuity insurance (excluding converted contracts), that of fixed individual annuity insurance was 1.3 million (89.1% of the total) and that of variable individual annuity insurance was.16 million (1.9%) in fiscal 213. The ratio of variable individual annuity insurance to the total number of new policies had been declining since reaching a peak in fiscal 25; however, it has been increasing since fiscal 212. [Figure 7] Among the amount of new policies for individual annuity insurance (excluding converted contracts), that of fixed individual annuity insurance was 7,54 billion yen (88.5% of the total) and that of variable individual annuity insurance was 919 billion yen (11.5%). [Figure 8] (2) Policies in Force The number and amount of policies in force for individual annuity insurance for fiscal 213 were 2.47 million (1.2% y/y) and 13,788 billion yen (1.3% y/y). [Figure 6] Both the number and amount of policies in force turned upward in fiscal 23 due to the strong sales of bancassurance, and in fiscal 213, both of them increased from the previous year for the eleventh successive year, and the number has been setting new highs every year since fiscal 26 as well as the amount since fiscal 28. Among the number of policies in force for individual annuity insurance, that of fixed individual annuity insurance accounted was 17.5 million (85.5% of the total) and that of variable individual annuity insurance was 2.97 million (14.5%). [Figure 9] Among the amount of policies in force for individual annuity insurance, fixed individual annuity insurance accounted for 86,514 billion yen (83.4% of the total) and variable individual annuity insurance for 17,273 billion yen (16.6%). [Figure 1] Figure 6: New Policies in Force for Individual Annuity Insurance (Number: million, Amount: billion yen, Y/Y: %) New Policies Policies in Force Number Amount Number Amount Y/Y Y/Y Y/Y Y/Y 29 1.62 12.8 8,222 13.5 18.34 15.3 94,171 15.4 21 1.44 88.5 6,894 83.8 18.98 13.5 95,71 11.6 211 1.58 11. 7,899 114.6 19.75 14. 98,915 13.3 212 1.65 13.9 8,563 18.4 2.42 13.4 13,518 14.7 213 1.5 91.4 8,3 93.5 2.47 1.2 13,788 1.3 Below are figures excluding Japan Post Insurance. 29 1.41 1.7 7,486 12.4 17.88 14.1 92,665 14.7 21 1.2 85.2 6,7 81.1 18.3 12.3 93,486 1.9 211 1.37 114.5 7,177 118.2 18.86 13.1 96,133 12.8 212 1.46 16.6 7,929 11.5 19.37 12.7 1,323 14.4 213 1.35 92.6 7,479 94.3 19.28 99.6 1,344 1. Note: The number includes converted contracts, and the amount reflects the net increase arising from the conversion. 4

(million) 1.8 1.5 1.2.9.6.3 1, 8, 6,.42 Figure 7: Changes in Individual Annuity Insurance by Type (Number of New Policies).13 1.2 1.28.7.9 1.48 1.5 Fixed Annuity Variable Annuity Note: Excluding converted contracts Figure 8: Changes in Individual Annuity Insurance by Type (Amount of New Policies) 2,412 767 459 526.16 1.3 919 4, 2, 5,913 6,28 7,496 8,23 7,54 (million) 25. 2. 15. 1. 5.. Fixed Annuity Variable Annuity Note: Excluding converted contracts Figure 9: Changes in Individual Annuity Insurance by Type (Number of Policies in Force) 3.44 3.46 3.43 3.33 2.97 14.89 15.52 16.32 17.9 17.5 Fixed Annuity Variable Annuity 12, Figure 1: Changes in Individual Annuity Insurance by Type (Amount of Policies in Force) 1, 8, 19,664 19,19 18,865 19,111 17,273 6, 4, 2, 74,57 76,52 8,49 84,46 86,514 Fixed Annuity Variable Annuity 5

3. Group Insurance (1) New Policies The number of new insured (aggregated) and the amount of new policies for group insurance were.7 million (221.4% y/y) and 4,479 billion yen (147.3% y/y), respectively. [Figures 11 and 14] New policies for group insurance had been declining since the traditional group term insurance was switched to general welfare group term insurance in fiscal 1997; however, in fiscal 213, both the number of new insured (aggregated) and amount increased from the previous year. Among the new policies, the amount of general welfare group term insurance ranked top (1,786 billion yen, 39.9% of the total), followed by group term insurance (1,727 billion yen, 38.6%) and group credit life insurance (965 billion yen, 21.5%). [Figure 12] (2) Policies in Force The number of insured and the amount of policies in force were 39.34 million (1.4% y/y) and 371,288 billion yen (1.3% y/y), slightly increasing from the previous year. [Figures 11 and 15] Among the policies in force, the amount of group credit life insurance ranked top (172,325 billion yen, 46.4% of the total), followed by group term insurance (112,785 billion yen, 3.4%) and general welfare group term insurance (85,556 billion yen, 23.%). [Figure 13] Figure 11: New Policies and Policies in Force for Group Insurance (Number: million, Amount: billion yen, Y/Y: %) New Policies Policies in Force Number of Insured Amount Number of Insured Amount Y/Y Y/Y Y/Y Y/Y 29.46 63.2 2,926 65.5 4.58 98.2 373,82 99.4 21.41 89.8 2,482 84.8 4.12 98.9 371,519 99.6 211.33 79.6 3,21 121.7 39.55 98.6 37,33 99.7 212.31 96. 3,41 1.7 39.19 99.1 37,112 99.9 213.7 221.4 4,479 147.3 39.34 1.4 371,288 1.3 Note: The number of insured w ho are designated as an insured under several group insurance contracts is aggregated into one (i.e. resolving double counting of insured of coinsurance undertaken by multiple insurers). Figure 12: Breakdown of Group Insurance in FY213 (Amount of New Policies) (Amount: billion yen) Group Credit Life Insurance 965 (21.5%) General Welfare Group Term Insurance 1,727 (38.6%) 4,479 Note: Figures in parentheses represent its ratio to the total amount. Group Term Insurance 1,786 (39.9%) 6

Consumer Credit Group Life Insurance 11.3% Figure 13: Breakdown of Group Insurance in FY213 (Amount of Policies in Force) General Welfare Group Term Insurance 85,556 23.% Others 341.6% 371,288 Annuity Benefit Rider 169.5% Group Credit Life Insurance 172,325 46.4% Group Term Insurance 112,785 3.4% 6, 5,5 5, 4,5 4, 3,5 3, 2,5 2, 1,5 1, 5.46 2,926 Figure 14: Changes in Group Insurance (Number/Amount of New Policies) Amount.41 2,482.33 Number of Insured.31 3,21 3,41.7 4,479 (million).8.7.6.5.4.3.2.1. 38, 375, 4.58 Figure 15: Changes in Group Insurance (Number/Amount of Policies in Force) 4.12 Amount Number of Insured (million) 41. 4.5 37, 4. 39.55 365, 39.19 39.34 39.5 36, 373,82 371,519 37,33 37,112 371,288 39. 355, 38.5 35, 38. 7

4. Group Annuity Insurance The amount of policies in force for group annuity insurance increased from the previous year to 32,742 billion yen (12.9% y/y). [Figures 16 and 17] Among them, while the assets of defined benefit corporate pensions increased in fiscal 213 from the previous year to 13,45 billion yen (12,17 billion yen in fiscal 212), the assets of employees' pension funds decreased to 2,341 billion yen (2,373 billion yen in fiscal 212). [Figure 18] Figure 16: New Policies and Policies in Force for Group Annuity Insurance (Number: million, Amount: billion yen, Y/Y: %) New Policies Policies in Force Number of Insured Amount Number of Insured Amount Y/Y Y/Y Y/Y Y/Y 29.8 76.3 7 24.1 2.35 93.5 31,316 1.5 21.6 79. 7 92.6 19.3 94.8 3,947 98.8 211.6 99.4 8 122.1 17.97 93.1 31,166 1.7 212.1 168.6 19 222. 17.89 99.5 31,815 12.1 213.5 51.3 2 12.8 17.54 98.1 32,742 12.9 Note: The number of insured w ho are designated as an insured under several group insurance contracts is aggregated into one (i.e. resolving double counting of insured of coinsurance undertaken by multiple insurers). 4, Figure 17: Changes in Policies in Force for Group Annuity Insurance (Amount of Policy Reserves) 35, 3, 25, 2, 15, 1, 5, 31,316 3,947 31,166 31,815 32,742 14, 12, 1, 8, 6, Figure 18: Asset Balance of Tax-Qualified Pension Plans, Employees' Pension Funds and Defined Benefit Corporate Pensions 12,17 11,487 9,954 8,574 13,45 4, 2, 2,783 2,463 2,415 2,358 2,373 2,341 1,315 Tax-Qualified Pension Plans Employees' Pension Funds Defined Benefit Corporate Pensions Note: Due to the abolition of preferential tax treatment for tax-qualified pension plans as of the end of March 212, a transition to other corporate pension plans was required to maintain preferential tax treatment. Insurers managing the plans promoted this transition from 22 and completed the transition of all plans by March 212. 8

5. Medical Insurance Medical insurance includes stand-alone medical insurance, other types of insurance policies with medical riders and medical care insurance (which supplements the public medical insurance scheme with medical treatment benefits covering copayments in public medical insurance for hospitalization due to unforeseen accidents and disease). The number and amount of policies in force for stand-alone medical insurance were 29.98 million (17.9 y/y) and 4,467 billion yen (95.4%). [Figure 19] The amount of policies in force for stand-alone medical insurance represents only the amount of death benefits and does not include the amount of other benefits such as hospitalization benefits (for products without death benefits, while their number is included in the total number of policies in force, the amount of benefits is not included in the total amount). Many products these days limit the amount of death benefits while enhancing benefits for hospitalization and surgery. Therefore, even though the number of policies in force has increased, the amount of policies in force has decreased. 7, Figure 19: Changes in Stand-alone Medical Insurance (Number/Amount of Policies in Force) (million) 35. 6, 5, 22.5 23.83 25.53 27.78 29.98 3. 25. 4, 2. 3, 2, 5,337 5,21 4,726 4,68 4,467 15. 1. 1, 5.. With respect to insurance policies with hospitalization and surgery coverage (the sum of riders and stand-alone medical insurance policies among individual life insurance and individual annuity insurance), the number of policies with accidental hospitalization riders in force was 72.31 million (12.1% y/y), those with sickness hospitalization riders in force was 72.21 million (12.6% y/y), and those with surgical benefit riders in force was 94.52 million (12.7% y/y). [Figure 2] The number and amount of policies in force for medical care insurance was 1.72 million (11.5% y/y) and 9.1 billion yen (11.3% y/y). [Figure 21] (million) 1. 9. Figure 2: Changes in Medical Insurance for Hospitalization and Surgery (Number of Policies in Force) 87.41 88.51 9.52 92.5 94.52 8. 7. 66.3 64.61 67.866.98 69.3968.76 7.817.41 72.3172.21 6. 5. Benefits for hospitalization due to unforeseen accidents Benefits for hospitalization due to sickness Benefits for surgery 9

12 1 8 Figure 21: Changes in Medical Care Insurance (Number of Policies in Force) 1.67 1.67 1.68 1.7 1.72 (million) 2. 1.5 6 4 2 8.7 8.8 8.9 8.9 9.1 1..5. Note 1: The Number is the sum of insured of group-type insurance and policies of individual-type insurance. Note 2: The number of insured who are designated as an insured under several group insurance contracts is aggregated into one (i.e. resolving double counting of insured of coinsurance undertaken by multiple insurers). Note 3: The amount is the sum of daily benefits for hospitalization. 1

6. Lapses and Surrenders The ratio of lapses and surrenders for individual insurance policies was 6.2% (down.4 points from the previous year), and the amount was 53,676 billion yen (94.3% y/y). [Figure 22] The ratio for individual annuity insurance policies was 5.4% (up 1.7 points from the previous year), and the amount was 4,939 billion yen (151.1% y/y). The number of surrenders for variable individual annuity insurance policies increased due to the upturn of the market around the end of the year. [Figure 23] The ratio for group insurance policies was 2.5% (down 1.2 points from the previous year), and the amount was 9,129 billion yen (66.9% y/y). Although the ratio and amount exceeded the previous year in fiscal 212 due to the surrenders associated with the merger of large groups, in fiscal 213, they decreased to the same level as up to until fiscal 211. [Figure 24] 1, 8, 6, 4, 2, Figure 22: Changes in Amount and Ratio of Lapses and Surrenders for Individual Insurance 1, 2 8. 7.2 6.8 6.6 6.2 74,84 64,589 6,18 56,927 53,676 (%) 9. 8. 7. 6. 5. 4. 3. 2. 1.. 6, Figure 23: Changes in Amount and Ratio of Lapses and Surrenders for Individual Annuity Insurance 1, 2, 3 5.4 (%) 6. 5, 4, 3.3 3.1 3. 3.7 5. 4. 3, 2, 1, 2,713 2,667 2,571 3,268 4,939 3. 2. 1.. 16, 14, 12, 1, 8, 6, 4, 2, Figure 24: Changes in Amount and Ratio of Lapses and Surrenders for Group Insurance 1, 2 2.6 2.5 2.4 9,582 9,435 8,928 3.7 13,646 2.5 9,129 Note 1: Amount of lapses and surrenders = ( lapses + surrender + decrease in insurance benefits) - (reinstatement + increase in insurance benefits) Note 2: Ratio of lapses and surrenders = ( amount of lapses and surrenders / amount of policies in force at the the beginning of fiscal year )* 1% Note 3: Figures are of annuity contracts whose benefit payments have not yet started. (%) 4. 3.5 3. 2.5 2. 1.5 1..5. 11

7. Annualized Premium The total amount of annualized premium on new policies for individual insurance was 2,53 billion yen (96.5% y/y), while that for individual annuity insurance was 766 billion yen (93.8% y/y) in fiscal 213. [Figure 25] The amount of annualized premium on policies in force for individual insurance was 17,696 billion yen (14.8% y/y), while that for individual annuity insurance was 6,752 billion yen (96.9% y/y). With regard to third-sector products (such as medical insurance and long-term care insurance), the amount of new policies was 532 billion yen (14.3% y/y) and that of policies in force was 5,538 billion yen (12.8% y/y). What is annualized premium? There are various options for paying premiums for customers, including monthly payment, annual payment and lump-sum payment at the time of concluding the contract. Also, payments can be made either throughout the entire contract period or during a certain period. By adjusting these differences in payment methods under the assumption that premium payments of the same amount would be made throughout the entire contract period, the annualized premium indicates the average amount of premium income which a life insurer would receive in one year. Example: Case of lump-sum premium payment (contract period: 5 years, total premium amount: 1 million yen) Premium Income: 1 million yen Annualized Premium: 2 thousand yen (1 million yen divided by 5 years) Individual Insurance Figure 25: Changes in Annualized Premium New Policies Policies in Force Individual Annuity Total Third-Sector Product Individual Insurance Individual Annuity Third-Sector Product 29 1,653 1,554 3,27 537 14,784 6,593 21,377 4,871 21 1,871 861 2,732 549 15,287 6,494 21,781 5,53 211 2,38 878 2,917 575 16,7 6,768 22,775 5,252 212 2,126 817 2,943 51 16,887 6,968 23,856 5,384 213 2,53 766 2,819 532 17,696 6,752 24,449 5,538 Below are figures excluding Japan Post Insurance. Below are figures excluding Japan Post Insurance. 29 1,273 1,38 2,582 494 13,976 6,168 2,145 4,781 21 1,469 57 2,4 512 14,126 5,928 2,54 4,931 211 1,627 62 2,248 535 14,499 6,123 2,623 5,97 212 1,694 594 2,289 469 15,31 6,31 21,333 5,197 213 1,614 586 2,2 482 15,54 6,91 21,595 5,31 *The amount of annualized premium of third-sector products includes the amount of premium to be allocated for paying medical coverage (e.g. benefits for hospitalization or surgery), living benefits (e.g. benefits for specified disease or long-term care), and premium w aiver benefits (e.g. benefits due to specified disease or long-term care, but excluding disability). Total 12

8. Statistical Data by Gender, Age and Prefecture (1) By Gender Comparing the number of new policies for individual insurance (excluding converted contracts) by gender of the insured, the ratio of males used to exceed that of females; however, the ratio of females has been increasing recently. In fiscal 213, although the ratio of males increased from the previous year, that of females was still slightly higher at 5.4% compared with 49.6% for males. [Figure 26] Comparing the number of new policies for individual insurance between each type of insurance product by gender of the insured in fiscal 213, "others" including cancer insurance and medical insurance ranked top (more than 4% of the total), followed by whole life insurance for both males and females. Term insurance came in third and endowment insurance in fourth for males, which was opposite to the result for females. [Figure 27] Comparing the number of new policies for individual annuity insurance by gender of the insured, the ratio of females has been higher than that of males so far, although the ratio of males has started to rise recently. In fiscal 213, the ratio of males and females was 43.4% and 56.6%, respectively. [Figure 28] Figure 26: Changes in Composition Ratio of Individual Insurance by Gender (Number of New Policies) 29 21 211 212 213 5.3 49.6 48.8 49.5 49.6 49.7 5.4 51.2 5.5 5.4 % 1% 2% 3% 4% 5% 6% 7% 8% 9% 1% Male Female Figure 27: Composition Ratio of Individual Insurance by Type in FY213 (Number of New Policies by Gender) Male 24.9 19.3 1.4 45.4 Female 3.4 11.6 12.9 45.1 % 1% 2% 3% 4% 5% 6% 7% 8% 9% 1% Whole Life Insurance Term Insurance Endowment Insurance Others Figure 28: Changes in Composition Ratio of Individual Annuity by Gender (Number of New Policies) 29 21 211 212 213 4.4 41. 42.7 43.1 43.4 59.6 59. 57.3 56.9 56.6 % 1% 2% 3% 4% 5% 6% 7% 8% 9% 1% Male Female 13

(2) By Age Comparing the number of new policies for individual insurance (excluding converted contracts) by age group of the insured, the ratio of those in their 4s had been on a rising trend, and the ratio of those in their 2s and 3s on a decreasing trend. In fiscal 213, however, the ratios of those under 2, those in their 2s and those aged 6 or over started to increase. [Figure 29] Also, comparing the number of new policies for individual insurance between each type of insurance product by age group of the insured, the ratio of "others" (including medical insurance, juvenile insurance, etc.) was the highest in those under 2, reaching 61.8%. Among those in their 2s to 5s, the ratio of "others" ranked top at more than 4%, followed by whole life insurance. Among those aged 6 or over, the ratio of whole life insurance ranked top at 42.7%, followed by "others". [Figure 3] Comparing the number of new policies for individual annuity insurance by age group of the insured, the ratios of those under 2, those in their 4s and 5s increased in fiscal 213. [Figure 31] Figure 29: Changes in Composition Ratio of Individual Insurance by Age (Number of New Policies) 29 14.9 17.8 22.7 16.3 13.4 14.8 21 15. 16.7 22.1 16.5 13.4 16.3 211 14.4 16.2 21.4 16.7 13.5 17.8 212 14.8 17.4 21.2 16.8 12.9 16.9 213 15.5 17.5 2.2 16.7 12.4 17.6 % 1% 2% 3% 4% 5% 6% 7% 8% 9% 1% Under 2 2s 3s 4s 5s 6 or older Under 2 Figure 3: Composition Ratio of Individual Insurance by Type in FY213 (Number of New Policies by Age) 11.6 13.3 13.2 61.8 2s 23.9 22.2 1.3 43.6 3s 26.1 21.3 9.6 43. 4s 27.1 17.8 11.6 43.5 5s 35. 11.9 9.6 43.5 6 or older 42.7 4.1 15.4 37.9 % 1% 2% 3% 4% 5% 6% 7% 8% 9% 1% Whole Life (including whole life with term rider) Term Insurance Endowment Insurance Others Figure 31: Changes in Composition Ratio of Individual Annuity by Age (Number of New Policies) 29 1.2 1.7 15.2 14. 18.7 4.3 21 1.4 12.6 17.1 15.3 17.6 36. 211 1.5 15.2 19.6 16.4 15.6 31.8 212 1.6 17.4 2.6 18.2 15.5 26.8 213 3.4 17. 19.1 18.5 16.7 25.2 % 1% 2% 3% 4% 5% 6% 7% 8% 9% 1% Under 2 2s 3s 4s 5s 6 or older 14

(3) By Prefecture Regarding the details of individual insurance by each prefecture, Figure 32 provides details of new policies (excluding converted contracts), and Figure 33 provides details of policies in force. Prefecture Figure 32: New Policies for Individual Insurance by Prefecture (FY213) Individual Insurance Number Amount Benefits per policy Policies per household Benefits per household Population Household (ten thousand) (thousand y en) (Number) (thousand y en) (ten thousand) (ten thousand) Hokkaido 64 2,422 3,765.23 892 544 271 Aomori 14 569 4,26.24 977 136 58 Iw ate 13 572 4,128.27 1,115 13 51 Miyagi 28 1,252 4,372.3 1,329 231 94 Akita 11 456 3,961.27 1,78 16 42 Yamagata 14 591 4,18.35 1,459 114 4 Fukushima 23 1,31 4,467.3 1,363 196 75 Ibaraki 27 1,255 4,57.23 1,8 294 116 Tochigi 22 1,52 4,655.29 1,35 198 77 Gunma 2 977 4,737.26 1,237 197 78 Saitama 7 3,397 4,797.23 1,12 716 33 Chiba 61 2,92 4,719.23 1,92 614 265 Tokyo 172 1,131 5,878.26 1,56 1,28 649 Kanagaw a 9 4,47 4,888.22 1,89 894 44 Niigata 23 1,134 4,793.27 1,35 234 86 Toyama 12 575 4,471.32 1,441 17 39 Ishikaw a 14 675 4,599.31 1,469 115 45 Fukui 11 518 4,584.4 1,862 79 27 Yamanashi 9 419 4,476.27 1,218 84 34 Nagano 22 1,28 4,521.27 1,233 213 83 Gifu 22 1,49 4,762.28 1,361 25 77 Shizuoka 43 2,1 4,551.29 1,347 373 148 Aichi 81 4,225 5,155.27 1,45 728 3 Mie 19 885 4,457.26 1,185 182 74 Shiga 15 69 4,554.28 1,286 139 53 Kyoto 28 1,26 4,458.24 1,97 253 114 Osaka 14 5,154 4,919.26 1,283 867 41 Hyogo 59 2,795 4,677.24 1,158 556 241 Nara 13 616 4,563.23 1,78 139 57 Wakayama 11 469 4,78.26 1,8 1 43 Tottori 7 325 4,177.33 1,412 58 23 Shimane 7 325 4,251.27 1,156 7 28 Okayama 21 1,3 4,638.26 1,246 192 8 Hiroshima 32 1,56 4,64.25 1,23 283 125 Yamaguchi 16 674 4,18.25 1,39 142 64 Tokushima 9 425 4,27.3 1,31 77 32 Kagaw a 12 593 4,891.28 1,45 1 42 Ehime 16 76 4,374.25 1,14 142 63 Kochi 9 355 3,795.26 1,12 75 35 Fukuoka 63 2,85 4,394.28 1,239 56 226 Saga 1 457 4,197.34 1,435 84 31 Nagasaki 17 685 4,2.27 1,13 141 62 Kumamoto 22 99 4,1.29 1,29 181 75 Oita 14 578 3,973.28 1,114 118 51 Miyazaki 13 512 3,692.27 999 113 51 Kagoshima 21 834 3,946.26 1,43 169 79 Okinaw a 12 49 3,985.2 823 143 59 Total 1,44 67,714 4,7.26 1,232 12,643 5,495 Note 1: Population and number of households are based on "Population, Demography and Number of Households Based on the Basic Resident Registers" of the Ministry of Internal Affairs and Communications. Note 2: The figures do not include that of converted contracts but only new contracts. 15

Prefecture Figure 33: Policies in Force for Individual Insurance by Prefecture (As of End of FY213) Individual Insurance Number Amount Benefits per policy Policies per household Benefits per household (ten thousand) (thousand yen) (Number) (thousand yen) Hokkaido 612 29,574 4,824 2.25 1,898 Aomori 14 8,389 5,961 2.41 14,385 Iw ate 131 7,627 5,781 2.57 14,865 Miyagi 281 16,156 5,743 2.98 17,139 Akita 18 5,928 5,481 2.55 14,11 Yamagata 14 8,14 5,771 3.46 2,7 Fukushima 216 12,459 5,752 2.86 16,474 Ibaraki 289 16,63 5,74 2.48 14,29 Tochigi 231 14,995 6,488 2.96 19,242 Gunma 216 13,67 6,35 2.74 17,31 Saitama 761 46,456 6,99 2.51 15,316 Chiba 671 4,511 6,33 2.52 15,248 Tokyo 1,652 15,966 6,413 2.54 16,321 Kanagaw a 985 6,362 6,123 2.43 14,923 Niigata 251 16,312 6,488 2.89 18,769 Toyama 146 9,85 6,29 3.66 22,759 Ishikaw a 149 9,41 6,45 3.25 19,67 Fukui 18 7,55 6,521 3.88 25,321 Yamanashi 95 5,927 6,216 2.77 17,228 Nagano 229 13,747 5,99 2.75 16,48 Gifu 225 13,926 6,17 2.92 18,69 Shizuoka 461 27,36 5,857 3.1 18,197 Aichi 847 53,455 6,36 2.81 17,783 Mie 22 12,189 6,22 2.7 16,32 Shiga 151 9,361 6,187 2.81 17,448 Kyoto 28 16,6 5,918 2.44 14,46 Osaka 1,3 63,48 6,317 2.49 15,786 Hyogo 594 35,3 5,894 2.46 14,512 Nara 144 8,653 5,987 2.52 15,13 Wakayama 114 6,477 5,638 2.64 14,891 Tottori 74 4,432 5,94 3.23 19,215 Shimane 77 4,422 5,729 2.74 15,77 Okayama 221 13,467 6,78 2.75 16,734 Hiroshima 324 18,513 5,712 2.58 14,795 Yamaguchi 162 8,721 5,372 2.49 13,429 Tokushima 94 5,56 5,881 2.89 17,2 Kagaw a 118 7,57 6,34 2.8 17,793 Ehime 154 9,4 5,85 2.41 14,134 Kochi 87 4,899 5,612 2.48 13,947 Fukuoka 65 33,22 5,483 2.67 14,666 Saga 12 5,886 5,742 3.21 18,467 Nagasaki 164 8,969 5,46 2.64 14,436 Kumamoto 28 11,69 5,321 2.76 14,725 Oita 139 7,175 5,131 2.69 13,822 Miyazaki 12 5,947 4,951 2.33 11,584 Kagoshima 188 9,412 4,983 2.36 11,774 Okinaw a 97 5,194 5,323 1.63 8,714 Total 14,388 857,54 5,96 2.61 15,65 Note 1: Population and number of households are based on "Population, Demography and Number of Households Based on the Basic Resident Registers" of the Ministry of Internal Affairs and Communications. 16

II Revenues and Expenditures 1. Insurance Related Income and Expenses (1) Premium Income The total amount of premium income was 34,738 billion yen (93.5% y/y). [Figure 34] It had been on a slight decrease since peaking in fiscal 1995, but has remained around 27 trillion yen since fiscal 24. From fiscal 28, it exceeded 34 trillion yen because of the inclusion of reinsurance premiums of old postal life insurance policies. This year, it decreased from the previous year due to the decrease in sales of lump-sum premium payment policies. While the amount increased from the previous year in group insurance (1,112 billion yen, 1.3% y/y) and group annuity insurance (3,851 billion yen, 14.6% y/y), the amount decreased in individual insurance (22,721 billion yen, 94.3% y/y) and individual annuity insurance (4,312 billion yen, 98.6% y/y). [Figure 35] Among the methods of paying premiums for individual insurance, monthly payment ranked top (48.5% of the total), followed by lump-sum payment (25.2%), annual payment (15.6%) and monthly payment through payroll deduction (1.2%). The ratio of lump-sum payment had been increasing recently, but it decreased from the previous year in fiscal 213. [Figure 36] Ordinary Revenues Premium Income and Others Premium Income Figure 34: Changes in Revenues and Expenditures Revenues Investment Income Interest and Dividends Others Insurance Ordinary Benefits Expenditures Paid Expenditures Provision for Investment Operating Insurance Reserves Expenses Expenses 29 52,511 35,265 34,116 1,22 6,99 7,43 5,647 33,681 9,151 1,819 4,326 1,669 1,864 21 49,31 35,13 34,454 7,679 6,265 6,528 47,468 32,49 6,741 2,832 4,35 1,538 1,841 211 51,7 37,29 36,289 8,139 6,293 5,838 48,423 31,28 9,413 1,889 4,353 1,558 2,583 212 54,83 38,69 37,14 11,835 6,475 4,899 52,239 31,685 12,881 1,734 4,349 1,588 2,564 213 53,215 35,784 34,738 11,326 6,877 6,15 5,113 33,778 9,18 1,345 4,389 1,491 3,11 Below are figures excluding Japan Post Insurance. 29 37,92 27,759 26,61 8,536 4,483 1,623 36,435 2,157 9,13 1,788 3,776 1,583 1,484 21 35,935 27,76 27,111 6,16 4,686 2,158 34,515 19,774 6,724 2,785 3,77 1,461 1,419 211 38,468 3,173 29,432 6,57 4,752 1,787 36,416 19,87 9,399 1,826 3,837 1,482 2,52 212 42,968 31,587 3,658 1,274 4,975 1,16 4,933 21,12 12,872 1,75 3,836 1,57 2,34 213 41,981 29,872 28,826 9,785 5,419 2,323 39,343 23,617 9,13 1,327 3,876 1,418 2,638 Others Ordinary Profit Figure 35: Changes in Premium Income by Type 4, 36,289 37,14 35, 34,116 34,454 34,738 3,835 3,874 2,739 4,973 4,275 3,925 3,683 3, 3,851 3,812 1,19 3,727 1,114 1,112 4,374 25, 1,133 1,115 4,679 4,312 4,82 2, 6,64 15, 1, 22,734 24,99 2,447 17,641 22,721 5, Others Group Annuity Insurance Group Insurance Individual Annuity Insurance Individual Insurance 17

Figure 36: Changes in Composition Ratio of Premium Income for Individual Insurance by Premium Payment Methods 29 14.8 15..6 54.5 15.1 21 23. 14.4.5 49.5 12.5 211 28.1 14.7.5 45.8 1.9 212 28.8 15.9.4 44.9 1. 213 25.2 15.6.5 48.5 1.2 % 1% 2% 3% 4% 5% 6% 7% 8% 9% 1% Lump-sum Annual Semi-Annual Monthly Monthly through Payroll Deduction (2) Insurance Benefits Paid The total amount paid by all life insurers under life insurance contracts in fiscal 213 was 33,778 billion yen (16.6% y/y). Among the amount of insurance benefits paid, claims paid amounted to 14,37 billion yen (93.5% y/y), annuities paid amounted to 4,499 billion yen (133.9% y/y), benefits (other than claims paid and annuities paid) amounted to 4,53 billion yen (13.% y/y), surrender benefits paid amounted to 7,999 billion yen (136.3% y/y), refunds to policyholders amounted to 1,136 billion yen (19.7% y/y) and reinsurance premiums amounted to 1,78 billion yen (81.4% y/y). The amount of claims paid declined for the sixth successive year since fiscal 28 due to the decrease in number of old postal life insurance policies, while the amount of annuities paid has been increasing. The amount of benefits increased for the second successive year. [Figure 37] Among the claims paid, the number and amount of ordinary death benefits were 1. million (99.% y/y) and 2,733 billion yen (11.% y/y), and those of matured insurance policies.92 million (86.1% y/y) and 1,779 billion yen (84.3% y/y). [Figure 38] Figure 37: Changes in Insurance Benefits Paid Claims Paid Annuities Paid Benefits Surrender Refunds to Reinsurance Benefits Policyholders Premiums Total 29 18,829 2,558 4,25 5,947 1,264 1,54 33,681 21 17,243 2,876 3,975 5,798 1,172 982 32,49 211 16,143 3,134 3,84 5,68 1,122 1,323 31,28 212 15,296 3,36 3,936 5,867 1,36 2,188 31,685 213 14,37 4,499 4,53 7,999 1,136 1,78 33,778 Below are figures excluding Japan Post Insurance. 29 5,425 2,52 4,19 5,916 1,221 1,54 2,157 21 5,181 2,792 3,962 5,737 1,117 982 19,774 211 5,145 2,996 3,785 5,577 1,42 1,323 19,87 212 5,17 3,163 3,91 5,712 93 2,188 21,12 213 4,796 4,242 4,19 7,779 1, 1,778 23,617 18

4,5 4, 3,5 3, 2,5 1.29 1.5 1.3 Figure 38: Changes in Number and Amount of Death/Maturity Benefit Payments 1.16 1.11 1.14 1.7 1.1 1. (million) 1.4 1.2 1..92.8 2, 1,5 1, 5 2,743 2,743 2,85 2,75 2,733 2,35 2,118 2,14 2,111 1,779.6.4.2. Amount (death benefits) Number (death benefits) Amount (maturity benefits) Number (maturity benefits) (3) Medical Benefits for Hospitalization and Surgery Among medical benefits paid, the number and amount of hospitalization benefits increased to 5.96 million (14.3% y/y) and 672 billion yen (11.6% y/y), and also those of surgery benefits increased to 3.38 million (16.5% y/y) and 368 billion yen (15.2% y/y). [Figure 39] 1, 5.12 Figure 39: Changes in Number and Amount of Hospitalization and Operation Insurance Benefit Payments 5.71 5.53 5.33 5.96 (million) 6. 8 5. 6 2.8 2.91 3.2 3.17 3.38 4. 3. 4 2 635 646 657 662 672 313 325 338 35 368 2. 1. Amount (hospitalization) Amount (operation) Number (hospitalization) Number (operation). 19

2. Investment Income and Expenses Investment income in fiscal 213 was 11,326 billion yen (95.7% y/y). Among the investment income, interest and dividends steadily increased from the previous year to 6,877 billion yen (16.2% y/y) while others including profits on asset management of special accounts decreased from the previous year to 2,631 billion yen (3,238 billion yen in fiscal 212). Profits on asset management of special accounts themselves amounted to 2,435 billion yen (2,897 billion yen in fiscal 212). [Figure 4] Among the interest and dividends, the amount of interest and dividends from securities stood at 5,62 billion yen (19.1% y/y) and that of interest and dividends from loans stood at 866 billion yen (94.2% y/y). The amount of profits on sales of securities stood at 1,124 billion yen (12.1% y/y), and the losses on sales of securities stood at 258 billion yen (79.9% y/y). The losses on revaluation of securities stood at 46 billion yen (21.7% y/y). [Figures 4 and 41] The amount of the balance of foreign exchange profits minus foreign exchange losses stood at 671 billion yen in fiscal 213 (1,155 billion yen in fiscal 212). The investment yield on assets in general accounts was 2.4% (2.36% in fiscal 212). The investment yield increased from the previous year in domestic stocks to 5.14% (.61% in fiscal 212) and real estate to 2.43% (2.35% in fiscal 212), while it decreased from the previous year in bonds to 1.95% (2.% in fiscal 212), foreign securities to 4.6% (5.25% in fiscal 212) and loans to 2.15% (2.18% in fiscal 212). [Figure 42] Interest and Dividends Securities Figure 4: Changes in Investment Income Loans Rent of Real Estate Deposits and Others Profit on Sales of Securities Foreign Exchange Profit Others (billion yen, %) 6,99 4,459 1,183 366 89 828 7 3,267 1,22 29 <98.> <1.2> <93.6> <97.2> <69.1> <75.> <118.7> <1526.7> <135.2> 6,265 4,764 1,65 342 93 1,113 1 298 7,679 21 <12.7> <16.8> <9.> <93.3> <14.6> <134.4> <16.1> <9.1> <75.3> 6,293 4,892 986 326 88 1,11 81 752 8,139 211 <1.4> <12.7> <92.6> <95.3> <94.5> <9.9> <6863.8> <252.> <16.> 6,475 5,153 919 318 84 935 1,184 3,238 11,835 212 <12.9> <15.3> <93.2> <97.7> <95.5> <92.5> <1448.> <43.7> <145.4> 6,877 5,62 866 312 79 1,124 693 2,631 11,326 213 <16.2> <19.1> <94.2> <97.9> <94.> <12.1> <58.5> <81.2> <95.7> Below are figures excluding Japan Post Insurance. 4,483 3,318 712 366 85 818 7 3,227 8,536 29 <97.9> <99.2> <96.> <97.2> <76.3> <78.8> <118.7> <1515.9> <146.3> 4,686 3,585 668 342 9 1,46 1 282 6,16 21 <14.5> <18.> <93.8> <93.3> <15.1> <127.9> <16.1> <8.7> <7.5> 4,752 3,71 639 326 85 921 81 751 6,57 211 <11.4> <13.2> <95.7> <95.3> <94.5> <88.> <6863.8> <266.3> <18.2> 4,975 3,964 612 318 79 875 1,184 3,238 1,274 212 <14.7> <17.1> <95.7> <97.7> <93.5> <95.> <1448.> <43.8> <157.9> 5,419 4,439 592 312 74 1,53 691 2,621 9,785 213 <18.9> <112.> <96.8> <97.9> <93.7> <12.3> <58.4> <8.9> <95.2> Note 1: Others include income from monetary trusts, profit on financial derivatives and gains on assets in separate accounts. Note 2: The figures in parentheses represent year-on-year rate. Total 2

Interest Paid Figure 41: Changes in Investment Expenses Losses on Sales of Securities Losses on Revaluation of Securities Foreign Exchange Losses Others (billion yen, %) 53 674 276 221 593 1,819 29 <8.5> <38.3> <9.3> <64.1> <1.7> <17.> 52 763 571 6 845 2,832 21 <98.5> <113.1> <26.7> <271.4> <142.4> <155.7> 6 75 231 182 79 1,889 211 <115.> <92.5> <4.5> <3.5> <83.9> <66.7> 61 323 216 29 1,15 1,734 212 11.8 45.8 93.4 15.9 155.8 91.8 69 258 46 21 949 1,345 213 <113.4> <79.9> <21.7> <74.> <85.9> <77.6> Below are figures excluding Japan Post Insurance. 5 648 276 22 592 1,788 29 <83.8> <39.2> <9.5> <63.9> <11.3> <17.5> 5 738 554 598 843 2,785 21 <1.1> <113.9> <2.6> <271.6> <142.4> <155.8> 58 675 231 179 681 1,826 211 <115.7> <91.5> <41.7> <3.1> <8.8> <65.6> 57 33 216 28 1,99 1,75 212 98.8 44.9 93.4 15.8 161.4 93.4 64 247 46 21 946 1,327 213 <112.2> <81.7> <21.7> <75.8> <86.1> <77.8> Note 1: Others include losses from monetary trusts, financial derivatives expenses and losses on assets in separate accounts. Note 2: The figures in parentheses represent year-on-year rate. Total Figure 42: Changes in Portfolio Yields by Type of Assets Bonds Domestic Stocks Foreign Securities Financial Loans Real Estate (%) General Account Assets 29 1.64 2.33 2.52 2.5 2.87 1.86 21 1.86 1.25 2.6 1.98 2.52 1.79 211 1.91 1.56 2.91 1.94 2.27 1.92 212 2..61 5.25 2.18 2.35 2.36 213 1.95 5.14 4.6 2.15 2.43 2.4 Below are figures excluding Japan Post Insurance. 29 1.9 2.33 2.58 1.68 2.9 2.2 21 2.15 1.25 2.12 1.67 2.55 1.87 211 2.13 1.56 2.93 1.67 2.29 2.4 212 2.24.61 5.29 2.9 2.37 2.65 213 2.1 5.15 4.65 2.7 2.46 2.68 Note: Yields are calculated by dividing (investment income - investment expenses + appraisal gains under Article 112 of the Insurance Business Act) by the average daily balance. 21

3. Operating Expenses The total amount of operating expenses stood at 4,389 billion yen (1.9% y/y). The ratio of premium income to total operating expenses was 12.3% (up.9 points from the previous year). [Figure 43] Figure 43: Changes in Operating Expenses (%) 6, 5, 12.3 12.3 11.8 11.4 12.3 14. 12. 4, 3, 2, 1, 4,326 4,35 4,353 4,349 4,389 1. 8. 6. 4. 2.. Operating Expenses Ratio to Premium Income 4. Basic Profits and Ordinary Profits The total amount of basic profits, which represents the profitability of the life insurance companies for the year, increased from the previous year to 3,545 billion yen (18.8% y/y) due to the increase in premium income and investment income. The total amount of ordinary profits also increased from the previous year to 3,11 billion yen (121.% y/y) due to the improvement in capital gains/losses. [Figure 44] What is Basic Profit? "Basic profit" is an accounting item which indicates the fundamental profits or losses of life insurance companies during the calculation period, consisting of income and expenditures for core insurance business (e.g. insurance premium income, payments of insurance benefits and operating expenses) and for investment (e.g. interest and dividends). The amount is calculated by deducting both "capital gains/losses" and "extraordinary gains/losses" (e.g. profits/losses on sales of securities) from the ordinary profits. Figure 44: Changes in Basic Profits and Ordinary Profits 4, 3,5 3, 2,848 2,5 2, 2,628 1,864 1,841 3,74 3,259 2,583 2,564 3,545 3,11 1,5 1, 5 Basic Profits Ordinary Profits 22

III Investment Results 1. Total Assets As of the end of fiscal 213, total assets stood at 35,582 billion yen (11.6% y/y). Among the items, securities accounted for 81.3% of total assets (285,31 billion yen, 12.4% y/y) followed by loans at 1.9% (38,99 billion yen, 94.7% y/y). [Figures 45 and 46] Cash, Deposits and Savings Call Loans Figure 45: Changes in Total Assets Monetary Trusts Securities Loans Tangible Fixed Assets Others Total As s ets 29 4,995 2,139 2,25 244,15 46,891 6,816 11,182 318,38 21 5,655 2,9 2,71 247,98 43,877 6,772 12,323 32,691 211 3,515 2,59 2,14 257,56 42,173 6,61 12,578 326,952 212 3,574 2,766 2,59 278,244 4,244 6,46 11,646 344,998 213 4,416 2,669 2,459 285,31 38,99 6,319 11,586 35,582 Below are figures excluding Japan Post Insurance. 29 2,77 1,785 2,3 163,88 3,63 6,717 9,73 217,41 21 3,69 1,413 1,845 17,87 29,329 6,683 1,214 223,94 211 2,29 1,911 1,771 182,973 28,244 6,515 9,556 233,264 212 2,85 2,563 1,83 25,686 27,553 6,374 7,74 254,535 213 2,753 2,439 1,877 215,652 27,78 6,23 7,461 263,493 Cash, Deposits and Savings Call Loans Figure 46: Ratio to Total Assets Monetary Trusts Securities Loans Tangible Fixed Assets Others (%) Total Ass ets 29 1.6%.7%.7% 76.7% 14.7% 2.1% 3.5% 1.% 21 1.8%.6%.6% 77.3% 13.7% 2.1% 3.8% 1.% 211 1.1%.8%.6% 78.8% 12.9% 2.% 3.8% 1.% 212 1.%.8%.6% 8.7% 11.7% 1.9% 3.4% 1.% 213 1.3%.8%.7% 81.3% 1.9% 1.8% 3.3% 1.% Below are figures excluding Japan Post Insurance. 29 1.2%.8%.9% 75.3% 14.1% 3.1% 4.5% 1.% 21 1.6%.6%.8% 76.3% 13.1% 3.% 4.6% 1.% 211 1.%.8%.8% 78.4% 12.1% 2.8% 4.1% 1.% 212 1.1% 1.%.7% 8.8% 1.8% 2.5% 3.% 1.% 213 1.%.9%.7% 81.8% 1.3% 2.4% 2.8% 1.% 23

2. Securities Among securities (285,31 billion yen in total), Japanese government bonds ranked top with 149,815 billion yen (1.7% y/y) accounting for 52.6% of the total securities, followed by foreign securities at 61,45 billion yen (19.8% y/y), corporate bonds at 24,895 billion yen (99.% y/y), stocks at 18,29 billion yen (17.8% y/y) and local government bonds at 14,8 billion yen (1.5% y/y). [Figure 47] Bonds (total of government bonds, local government bonds and corporate bonds) have been increasing (188,72 billion yen, 1.5% y/y). Although stocks had been decreasing and they continued to be sold in fiscal 213, the amount substantially increased due to the rise in stock prices. Among the assets, the amount of bonds accounted for 53.8%, foreign securities for 17.5%, and stocks for 5.1% of the total in fiscal 213. [Figures 48 and 49] Among foreign securities, the amount of bonds (total of government bonds, local government bonds and corporate bonds) stood at 56,186 billion yen (11.6% y/y), and the amount of stocks stood at 5,264 billion yen (11.1% y/y). [Figure 49] Government Bonds Figure 47: Changes in Breakdown of Securities Local Government Bonds Corporate Bonds Stocks Foreign Securities (Amount: billion yen, Ratio: %) Other Securities Amount Ratio Amount Ratio Amount Ratio Amount Ratio Amount Ratio Amount Ratio Amount 29 127,988 52.4 1,967 4.5 26,453 1.8 18,661 7.6 42,957 17.6 17,12 7. 244,15 21 132,398 53.4 11,916 4.8 25,283 1.2 16,214 6.5 45,738 18.4 16,428 6.6 247,98 211 141,275 54.9 13,163 5.1 25,342 9.8 14,744 5.7 46,926 18.2 16,17 6.3 257,56 212 148,769 53.5 13,934 5. 25,155 9. 16,725 6. 55,986 2.1 17,673 6.4 278,244 213 149,815 52.6 14,8 4.9 24,895 8.7 18,29 6.3 61,45 21.6 16,83 5.9 285,31 Below are figures excluding Japan Post Insurance. 29 6,371 36.9 5,839 3.6 19,516 11.9 18,661 11.4 42,298 25.8 17,12 1.5 163,88 21 68,295 4. 5,66 3.3 19,193 11.2 16,214 9.5 45,14 26.4 16,428 9.6 17,87 211 81,313 44.4 5,385 2.9 19,115 1.4 14,743 8.1 46,38 25.3 16,17 8.8 182,973 212 92,296 44.9 5,236 2.5 18,671 9.1 16,724 8.1 55,84 26.8 17,673 8.6 25,686 213 97,292 45.1 4,835 2.2 18,454 8.6 18,28 8.4 6,211 27.9 16,83 7.8 215,652 Total 25, Figure 48: Changes in Balance of Bonds and Stocks 52. 52.9 55. 54.5 53.8 (%) 6. 2, 15, 165,41 169,598 179,781 187,859 188,72 5. 4. 3. 1, 2. 5, 18,661 16,214 14,744 16,725 18,29 5.9 5.9 4.5 4.8 5.1 Bonds Stocks Ratio to Total Assets (bonds) Ratio to Total Assets (stocks) 1.. 24

8, 6, 4, 2, Figure 49: Changes in Balance of Foreign Securities 17.5 16.2 13.5 14.3 14.4 5,264 5,25 5,69 4,871 4,92 5,78 56,186 37,887 4,866 42,23 Bonds Stocks Ratio to Total Asssets (%) 2 18 16 14 12 1 8 6 4 2 3. Loans The balance of loans decreased from the previous year to 38.99 billion yen (94.7% y/y), accounting for 1.9% of total assets (11.7% in fiscal 212). Loans were the main items in the investment portfolios of life insurers from the late 196s to early 197s; however, the amount has been decreasing in the long run. Financial loans, accounting for 91.8% of total loans, decreased from the previous year to 34,964 billion yen (94.4% y/y), and policy loans also decreased from the previous year to 3,134 billion yen (97.8% y/y). [Figure 5] Among the items of financial loans, loans to entities account for 87.%, followed by loans to individuals (6.3%). Among the loans to entities, loans to large entities account for 54.5% of the total, followed by loans to leading medium-sized entities (.5%) and small and medium-sized enterprises (39.8%). [Figure 51] The amount of risk management loans decreased from the previous year to 121 billion yen (89.6% y/y). Among them, past due loans amounted to 83 billion yen (97.9% y/y) and restructured loans amounted to 26 billion yen (69.1% y/y). [Figure 52] The ratio of risk management loans to total loans was.3% in fiscal 213 (.3% in fiscal 212). Figure 5: Changes in Breakdown of Loans (Amount: billion yen, Ratio: %) Financial Loans Policy Loans Total Loans Ratio to Total Assets 29 43,314 3,577 46,891 14.7 21 4,423 3,453 43,877 13.7 211 38,858 3,315 42,173 12.9 212 37,39 3,25 4,244 11.7 213 34,964 3,134 38,99 1.9 Below are figures excluding Japan Post Insurance. 29 27,56 3,574 3,63 14.1 21 25,886 3,443 29,329 13.1 211 24,95 3,294 28,244 12.1 212 24,383 3,169 27,553 1.8 213 23,998 3,79 27,78 1.3 25

Figure 51: Changes in Financial Loans to Entities and Individuals (billion yen, %) Loans to Entities Large Entities Leading Medium-Sized Entities SMEs Loans to Individuals Home Mortgages Consumer Loans 38,54 18,329 284 18,295 1,83 962 29 <91.> <94.9> <92.9> <87.3> <96.1> <89.7> 35,613 17,537 24 16,346 1,746 91 21 <92.5> <95.7> <71.9> <89.3> <96.8> <94.6> 34,38 17,392 153 15,446 1,57 777 211 <96.5> <99.2> <75.1> <94.5> <89.9> <85.3> 32,489 17,97 131 13,874 1,451 794 212 <94.5> <98.3> <85.4> <89.8> <92.4> <12.2> 3,443 16,594 139 12,14 1,4 88 213 <93.7> <97.1> <16.6> <87.2> <96.5> <11.7> Below are figures excluding Japan Post Insurance. 22,532 18,263 284 2,389 1,83 962 29 <93.3> <94.8> <92.9> <84.5> <96.1> <89.7> 21,436 17,435 24 2,269 1,746 91 21 <95.1> <95.5> <71.9> <95.> <96.8> <94.6> 2,881 17,223 153 2,117 1,57 777 211 <97.4> <98.8> <75.1> <93.3> <89.9> <85.3> 2,286 16,881 131 1,888 1,451 794 212 <97.1> <98.> <85.4> <89.2> <92.4> <12.2> 19,981 16,351 139 1,885 1,4 88 213 <98.5> <96.9> <16.6> <99.8> <96.5> <11.7> Note 1: Financial loans to entities include the loans to foreign entities other than the items described above. Note 2: The figures in parentheses represent year-on-year rate. 3 25 2 15 1 5 Figure 52: Changes in Amount of Risk Management Loans.5.4.4.3.3 38 38 3 4 46 13 148 3 38 26 3 119 3 85 83 17 12 1 7 7 Loans to Bankrupt Borrowers Past Due Loans 3 Months or More Past Due Loans Restructured Loans Ratio of Risk Management Loans (%).5.4.3.2.1. 26

4. Tangible Fixed Assets (Real Estate) Among the total amount of tangible fixed assets (6,319 billion yen), the amount of real estate, which is the total amount of land, buildings and construction in process, was 6,237 billion yen (97.8% y/y). [Figures 45 and 53] (billion) 7, 6,5 6, Figure 53: Changes in Balance of Real Estate 2.1 2.1 2. 1.8 1.8 (%) 2. 1.5 5,5 6,72 6,69 6,513 6,374 6,237 1. 5,.5 4,5 IV Liabilities and Net Assets Amount Ratio to Total Assets Note: Real estate is the total of land, buildings and construction in process. Total liabilities stood at 332,431 billion yen (11.1% y/y), accounting for 94.8% of the total of liabilities and net assets. Among the items of liabilities, insurance reserves account for 93.9% of total liabilities. Among insurance reserves, policy reserves, which are reserved for future insurance claim payments, account for 97.8% of total policy reserves. Other than that, reserves for policyholder dividends account for 1.5%, which are reserved for paying dividends on insurance contracts, and reserves for outstanding claims account for.7%, which are reserved for unclaimed insurance payable. [Figure 54 (upper panel)] Meanwhile, total net assets were 18,151 billion yen (111.2% y/y), accounting for 5.2% of the total of liabilities and net assets. It increased from the previous year due to the increase in total valuation, translation adjustment, and others[figure 54 (lower panel)] Figure 54: Liabilities and Net Assets (Amount: billion yen, Ratio: %) Breakdown of Liabilities Amount Ratio of Liabilities Ratio Insurance Reserves 312,27 93.9 89.1 Reserves for Outstanding Claims 2,116.6.6 Policy Reserves 35,371 91.9 87.1 Reserves for Policyholder Dividends 4,719 1.4 1.4 Price Fluctuation Reserves 2,7.8.8 Others 17,523 5.3 5. Total Liabilities 332,431 1. 94.8. Breakdown of Net Assets Amount Ratio of Net Assets Ratio Fund or Capital 3,183 17.5.9 Accumulated Redeemed Foundation Funds 1,85 1.2.5 Capital Surplus 1,77 9.8.5 Surplus or Retained Earnings 3,116 17.2.9 Total Valuation, Translation Adjustment, and others 8,229 45.3 2.3 Differential on Revaluation of Land -183-1. -.1 Other Net As s ets 1.. Total Net Ass ets 18,151 1. 5.2 Total Liabilities and Net Assets 35,582-1. 27

(Reference) Distribution Channels and Sales Force The distribution channels of the life insurance companies in Japan have diversified recently, including tied sales agents who belong to a sales office of a life insurance company organized within its domestic branch, sales agencies which conclude a service contract with a life insurance company, direct sales and internet sales. The solicitation of life insurance products is required to be conducted by a life insurance solicitor who is registered in accordance with the Insurance Business Act; therefore, tied sales agents, sales agencies (including corporate type and individual type) and sales representatives at agencies must be registered with the FSA as a life insurance solicitor. Although the number of tied sales agents had been on the decrease until fiscal 27, it increased in fiscal 28 and 29; however, it started to decrease again in fiscal 21 and reached 228,878 (98.% y/y) in fiscal 213. Besides, the number of individual type sale agencies has been decreasing since fiscal 1998 and reached 56,938 (92.9% y/y) in fiscal 213. The number of corporate type sales agencies had been decreasing since 27, and while it increased in fiscal 212 from the previous year, it again decreased in fiscal 213 from previous year to 34,714 (99.7% y/y). Sales representatives at agencies have continued to increase since fiscal 22 when the banks started to sell all types of life insurance products, and it exceeded one million in fiscal 211, reaching 1,15,242 (1.4% y/y) in fiscal 213. (The data of Japan Post Insurance started to be reflected in the data from fiscal 27.) Number of Tied Sales Agents, Agencies and Sales Representatives at Agencies (ten thousand agents) 12 Corporate Agencies (ten thousand agencies) 18 1 Individual Agencies Tied Sales Agents Sales Representatives at Agencies 16 14 8 12 6 1 8 4 6 2 4 2 1998 1999 2 21 22 23 24 25 26 27 28 Corporate Agencies 28,36 29,3 3,6 31,277 32,874 33,796 34,925 35,87 36,292 36,23 35,732 35,84 34,82 34,694 34,89 34,714 Individual Agencies 16,846 158,556 152,98 114,47 15,639 96,498 89,168 86,763 79,51 72,382 72,247 7,98 68,46 64,47 61,298 56,938 Tied Sales Agents 341,65 329,779 313,8 298,163 284,47 267,992 263,935 259,55 248,771 245,578 248,481 25,61 24,952 236,572 233,559 228,878 Sales Representatives at Agencies 18,543 24,318 232,212 296,396 693,441 713,542 721,823 747,432 776,749 912,96 949,22 97,797 989,31 1,5,471 1,11,176 1,15,242 Note: The number of sales representatives at agencies includes the total of corporate agencies and individual agencies. 28

Member Companies List of Member Companies (43 life insurers) as of March 214 ING Life Insurance Company, Ltd. T & D FINANCIAL LIFE INSURANCE COMPANY AXA Life Insurance Co., Ltd. AXA Direct Life Insurance Company Limited Asahi Mutual Life Insurance Co. American Family Life Assurance Company of Columbus Allianz Life Insurance Japan Ltd. AIG Fuji Life Insurance Company, Limited NKSJ Himawari Life Insurance, Inc.* ORIX Life Insurance Corporation CARDIF Assurance Vie JAPAN POST INSURANCE Co., Ltd. Crédit Agricole Life Insurance Company Japan Ltd. The Gibraltar Life Insurance Co., Ltd. Sumitomo Life Insurance Co. Sony Life Insurance Co., Ltd. AEGON Sony Life Insurance Co., Ltd. Sompo Japan DIY Life Insurance Co., Ltd.* THE DAI-ICHI LIFE INSURANCE COMPANY, LIMITED The Dai-ichi Frontier Life Insurance Co. Ltd. Daido Life Insurance Co. Taiyo Life Insurance Company Zurich Life Insurance Company Ltd. Tokio Marine & Nichido Life Insurance Co., Ltd.* Tokio Marine & Nichido Financial Life Insurance Co., Ltd.* Nippon Life Insurance Co. Hartford Life Insurance K.K. PCA LIFE Insurance Co., Ltd. Fukoku Mutual Life Insurance Co. Fukokushinrai Life Insurance Co., Ltd. The Prudential Life Insurance Co., Ltd. The Prudential Gibraltar Financial Life Insurance Co., Ltd. MassMutual Life Insurance Company Manulife Life Insurance Company Mitsui Life Insurance Company Limited Mitsui Sumitomo Aioi Life Insurance Co., Limited Mitsui Sumitomo Primary Life Insurance Company, Limited Midori Life Insurance Company Meiji Yasuda Life Insurance Company MetLife Alico Life Insurance K.K.* Medicare Life Insurance Co., Ltd. LIFENET INSURANCE COMPANY Rakuten Life Insurance Co., Ltd. Note: As of October 214, there were the following changes of company's name and a merger. NKSJ Himawari Life Insurance, Inc. MetLife Alico Life Insurance K.K. Tokio Marine & Nichido Life Insurance Co., Ltd. Tokio Marine & Nichido Financial Life Insurance Co., Ltd. Sompo Japan Nipponkoa Himawari Life Insurance, Inc. MetLife Insurance K.K. Tokio Marine & Nichido Life Insurance Co., Ltd. 29