UNOFFICIAL TRANSLATION
This document is an unofficial English translation of the Japanese original.

Summary of
Consolidat...
Summary of Consolidated Financial Results for the nine months ended December 31, 2013
Contents – Supplementary Information...
NKSJ Holdings, Inc.

Overview of Business Results of Principal Consolidated Subsidiaries
Sompo Japan Insurance Inc. (Non-c...
NKSJ Holdings, Inc.

Sompo Japan Insurance Inc. (Non-consolidated)
Quarterly Statement of Income
Increase
(Decrease)

(Mil...
NKSJ Holdings, Inc.

Sompo Japan Insurance Inc. (Non-consolidated)
Premiums Written and Claims Paid by Business Lines
Dire...
NKSJ Holdings, Inc.

Sompo Japan Insurance Inc. (Non-consolidated)
Solvency Margin Ratio (Non-consolidated)
(Millions of y...
NKSJ Holdings, Inc.

NIPPONKOA Insurance Co., Ltd. (Non-consolidated)
Quarterly Balance Sheet
As of March 31, 2013

As of ...
NKSJ Holdings, Inc.

NIPPONKOA Insurance Co., Ltd. (Non-consolidated)
Quarterly Statement of Income
Increase
(Decrease)

(...
NKSJ Holdings, Inc.

NIPPONKOA Insurance Co., Ltd. (Non-consolidated)
Premiums Written and Claims Paid by Business Lines
D...
NKSJ Holdings, Inc.

NIPPONKOA Insurance Co., Ltd. (Non-consolidated)
Solvency Margin Ratio (Non-consolidated)
(Millions o...
NKSJ Holdings, Inc.

Sonpo 24 Insurance Company Limited (Non-consolidated)
Quarterly Balance Sheet
As of March 31, 2013

A...
NKSJ Holdings, Inc.

Sonpo 24 Insurance Company Limited (Non-consolidated)
Quarterly Statement of Income
(Millions of yen)...
NKSJ Holdings, Inc.

Sonpo 24 Insurance Company Limited (Non-consolidated)
Premiums Written and Claims Paid by Business Li...
NKSJ Holdings, Inc.

Sonpo 24 Insurance Company Limited (Non-consolidated)
Solvency Margin Ratio (Non-consolidated)
(Milli...
NKSJ Holdings, Inc.

Saison Automobile and Fire Insurance Company, Limited (Non-consolidated)
Quarterly Balance Sheet
As o...
NKSJ Holdings, Inc.

Saison Automobile and Fire Insurance Company, Limited (Non-consolidated)
Quarterly Statement of Incom...
NKSJ Holdings, Inc.

Saison Automobile and Fire Insurance Company, Limited (Non-consolidated)
Premiums Written and Claims ...
NKSJ Holdings, Inc.

Saison Automobile and Fire Insurance Company, Limited (Non-consolidated)
Solvency Margin Ratio (Non-c...
NKSJ Holdings, Inc.

NKSJ Himawari Life Insurance, Inc. (Non-consolidated)
Quarterly Balance Sheet
As of March 31, 2013

A...
NKSJ Holdings, Inc.

NKSJ Himawari Life Insurance, Inc. (Non-consolidated)
Quarterly Statement of Income
Nine months ended...
NKSJ Holdings, Inc.

NKSJ Himawari Life Insurance, Inc. (Non-consolidated)
Major Business Results
Total amount of policies...
NKSJ Holdings, Inc.

NKSJ Himawari Life Insurance, Inc. (Non-consolidated)
Solvency Margin Ratio (Non-consolidated)
As of ...
NKSJ Holdings, Inc.

Sompo Japan DIY Life Insurance Co., Ltd. (Non-consolidated)
Quarterly Balance Sheet
As of March 31, 2...
NKSJ Holdings, Inc.

Sompo Japan DIY Life Insurance Co., Ltd. (Non-consolidated)
Quarterly Statement of Income
Nine months...
NKSJ Holdings, Inc.

Sompo Japan DIY Life Insurance Co., Ltd. (Non-consolidated)
Major Business Results
Total amount of po...
NKSJ Holdings, Inc.

Sompo Japan DIY Life Insurance Co., Ltd. (Non-consolidated)
Solvency Margin Ratio (Non-consolidated)
...
Supplementary Explanation
< Calculation of ratios, etc. >
• Underwriting profit = Underwriting income - Underwriting expen...
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02 24-14 nksj results-q3-2

  1. 1. UNOFFICIAL TRANSLATION This document is an unofficial English translation of the Japanese original. Summary of Consolidated Financial Results for the nine months ended December 31, 2013 Supplementary Information February 14, 2014 NKSJ Holdings, Inc. ( Securities code : 8630 )
  2. 2. Summary of Consolidated Financial Results for the nine months ended December 31, 2013 Contents – Supplementary Information Overview of Business Results of Principal Consolidated Subsidiaries Sompo Japan Insurance Inc. (Non-consolidated) ······································································································· Quarterly Balance Sheet ·············································································································································· Quarterly Statement of Income ···································································································································· Premiums Written and Claims Paid by Business Lines ······························································································ Solvency Margin Ratio (Non-consolidated) ················································································································· 2 2 3 4 5 NIPPONKOA Insurance Co., Ltd. (Non-consolidated) ································································································· Quarterly Balance Sheet ·············································································································································· Quarterly Statement of Income ···································································································································· Premiums Written and Claims Paid by Business Lines ······························································································ Solvency Margin Ratio (Non-consolidated) ················································································································· 6 6 7 8 9 Sonpo 24 Insurance Company Limited (Non-Consolidated) ···················································································· Quarterly Balance Sheet ·············································································································································· Quarterly Statement of Income ···································································································································· Premiums Written and Claims Paid by Business Lines ······························································································ Solvency Margin Ratio (Non-consolidated) ················································································································· 10 10 11 12 13 Saison Automobile and Fire Insurance Company, Limited (Non-consolidated) ··················································· Quarterly Balance Sheet ·············································································································································· Quarterly Statement of Income ···································································································································· Premiums Written and Claims Paid by Business Lines ······························································································ Solvency Margin Ratio (Non-consolidated) ················································································································· 14 14 15 16 17 NKSJ Himawari Life Insurance, Inc. (Non-consolidated) ·························································································· Quarterly Balance Sheet ·············································································································································· Quarterly Statement of Income ···································································································································· Major Business Results (Total amount of policies in force, total amount of new policies, and annualized premiums) ··································· Solvency Margin Ratio (Non-consolidated) ················································································································· 18 18 19 Sompo Japan DIY Life Insurance Co., Ltd. (Non-consolidated) ·············································································· Quarterly Balance Sheet ·············································································································································· Quarterly Statement of Income ···································································································································· Major Business Results (Total amount of policies in force, total amount of new policies, and annualized premiums) ··································· Solvency Margin Ratio (Non-consolidated) ················································································································· 22 22 23 20 21 24 25 Supplementary Explanation ·········································································································································· 26 Calculation of ratios, etc. ·············································································································································· 26 Solvency margin ratio (Non-consolidated) ··················································································································· 26 1
  3. 3. NKSJ Holdings, Inc. Overview of Business Results of Principal Consolidated Subsidiaries Sompo Japan Insurance Inc. (Non-consolidated) Quarterly Balance Sheet As of March 31, 2013 As of December 31, 2013 Amount (Millions of yen) Increase (Decrease) Amount Assets: Cash and deposits Call loans Receivables under resale agreements Monetary receivables bought Money trusts Securities Loans Tangible fixed assets Intangible fixed assets Other assets Deferred tax assets Customers' liabilities for acceptances and guarantees Allowance for possible credit losses Allowance for possible investment losses Total assets Liabilities: Underwriting funds: Reserve for outstanding losses and claims Underwriting reserves Corporate bonds Other liabilities Reserve for retirement benefits Reserve for bonus payments Reserve for bonus payments to directors Reserves under the special laws: Reserve for price fluctuation Acceptances and guarantees Total liabilities Net assets: Shareholders' equity: Common stock Capital surplus Retained earnings Total shareholders' equity Valuation and translation adjustments: Unrealized gains and losses on securities available for sale 238,184 56,700 80,483 21,542 28,995 3,184,642 411,282 208,482 86 411,065 79,760 35,200 (2,468) (8,880) 4,745,077 86,900 83,800 110,981 17,144 67,922 3,439,951 419,162 205,946 85 420,074 21,166 16,000 (2,405) (8,793) 4,877,936 (151,283) 27,100 30,497 (4,398) 38,926 255,309 7,880 (2,536) (0) 9,009 (58,594) (19,200) 62 86 132,859 3,376,310 614,979 2,761,331 261,560 257,692 76,187 13,753 140 19,388 19,388 35,200 4,040,233 3,399,195 624,194 2,775,000 261,560 219,370 80,053 4,822 - 23,430 23,430 16,000 4,004,432 22,884 9,215 13,669 - (38,322) 3,866 (8,931) (140) 4,041 4,041 (19,200) (35,801) 70,000 24,229 169,069 263,299 70,000 24,229 193,234 287,464 - - 24,164 24,164 441,544 585,957 144,413 82 586,040 873,504 4,877,936 82 144,496 168,660 132,859 - 441,544 704,843 4,745,077 Deferred gains and losses on hedges Total valuation and translation adjustments Total net assets Total liabilities and net assets 2
  4. 4. NKSJ Holdings, Inc. Sompo Japan Insurance Inc. (Non-consolidated) Quarterly Statement of Income Increase (Decrease) (Millions of yen) Rate of change Nine months ended December 31, 2012 (April 1 to December 31, 2012) Amount Nine months ended December 31, 2013 (April 1 to December 31, 2013) Amount 1,251,624 1,179,084 994,341 81,263 1,250,313 1,162,824 1,051,786 81,799 (1,310) (16,259) 57,445 536 (0.1) (1.4) 5.8 0.7 25,744 24,179 (1,564) (6.1) % Ordinary income: Underwriting income: Net premiums written Deposits of premiums by policyholders Interest and dividend income on deposits of premiums, etc. Reversal of reserve for outstanding losses and claims Reversal of underwriting reserves Investment income: Interest and dividend income Investment gains on money trusts Investment gains on trading securities Gains on sales of securities Transfer of interest and dividend income on deposits of premiums, etc. Other ordinary income Ordinary expenses: Underwriting expenses: Net claims paid Loss adjustment expenses Net commissions and brokerage fees Maturity refunds to policyholders Provision for reserve for outstanding losses and claims Provision for underwriting reserves Investment expenses: Investment losses on money trusts Losses on sales of securities Impairment losses on securities Operating, general and administrative expenses Other ordinary expenses: Interest paid Ordinary profit Extraordinary gains: Gains on disposal of fixed assets Extraordinary losses: Losses on disposal of fixed assets Impairment losses Provision for reserves under the special laws: Provision for reserve for price fluctuation Other extraordinary losses Net income before income taxes Income taxes and deferred income taxes Net income Underwriting result: Net premiums written Net claims paid Loss adjustment expenses Net operating expenses: Net commissions and brokerage fees Operating, general and administrative expenses related to underwriting Underwriting result Underwriting profit (loss) Ratios: Net loss ratio Net operating expenses ratio Underwriting result ratio 4,264 - (4,264) (100.0) 70,702 68,469 55,956 110 13 37,968 - 83,555 56,281 2,279 - 41,410 (70,702) 15,085 325 2,168 (13) 3,442 (100.0) 22.0 0.6 1,960.0 (100.0) 9.1 (25,744) (24,179) 1,564 4,070 1,234,041 1,027,801 634,235 66,112 170,386 154,978 3,933 1,199,489 1,011,883 607,139 68,444 180,769 130,625 (136) (34,552) (15,917) (27,095) 2,331 10,383 (24,353) - (3.4) (2.8) (1.5) (4.3) 3.5 6.1 (15.7) 9,215 - 37,522 - 679 28,133 162,770 5,948 5,515 17,582 74 74 9,129 169 302 1,230 1,230 7,427 8,526 2,790 5,735 13,669 22,595 3 1,394 10,748 156,136 8,873 8,678 50,824 185 185 12,937 418 215 4,041 4,041 8,262 38,072 13,907 24,164 13,669 (14,926) 3 714 (17,385) (6,633) 2,924 3,163 33,242 111 111 3,807 248 (86) 2,811 2,811 834 29,546 11,117 18,429 - (39.8) - 105.1 (61.8) (4.1) 49.2 57.4 189.1 149.8 149.8 41.7 146.9 (28.7) 228.4 228.4 11.2 346.5 398.3 321.3 994,341 634,235 66,112 326,013 170,386 1,051,786 607,139 68,444 330,741 180,769 57,445 (27,095) 2,331 4,728 10,383 5.8 (4.3) 3.5 1.5 6.1 155,627 149,971 (5,655) (3.6) (32,020) (5,568) (+) (-) (-) (-) - 45,460 1,129 77,480 6,697 70.4 32.8 (3.2) 64.2 31.4 4.3 (%) (%) (%) 3 9,215 (6.2) (1.3) 7.5 - - -
  5. 5. NKSJ Holdings, Inc. Sompo Japan Insurance Inc. (Non-consolidated) Premiums Written and Claims Paid by Business Lines Direct premiums written (excluding deposits of premiums by policyholders) (Millions of yen) Nine months ended December 31, 2013 (April 1 to December 31, 2013) Nine months ended December 31, 2012 (April 1 to December 31, 2012) Business line Amount % of total amount Rate of change % Fire and allied insurance Marine insurance Personal accident insurance Voluntary automobile insurance Compulsory automobile liability insurance Others Total Deposits of premiums by policyholders 144,783 23,886 101,850 491,992 149,815 145,868 1,058,197 81,263 13.7 2.3 9.6 46.5 14.2 13.8 100.0 Amount % 5.4 1.5 1.0 2.1 2.4 4.6 2.8 (12.2) ―― % of total amount Rate of change % 151,557 26,885 102,736 511,690 168,881 160,523 1,122,275 81,799 13.5 2.4 9.2 45.6 15.0 14.3 100.0 % 4.7 12.6 0.9 4.0 12.7 10.0 6.1 0.7 ―― Net premiums written (Millions of yen) Nine months ended December 31, 2013 (April 1 to December 31, 2013) Nine months ended December 31, 2012 (April 1 to December 31, 2012) Business line Amount Fire and allied insurance Marine insurance Personal accident insurance Voluntary automobile insurance Compulsory automobile liability insurance Others Total 118,077 19,203 100,758 493,537 141,902 120,861 994,341 % of total amount Rate of change % 11.9 1.9 10.1 49.6 14.3 12.2 100.0 Amount % of total amount % 7.7 3.4 1.1 2.2 7.9 (0.3) 3.2 Rate of change % 129,554 22,642 102,288 513,496 152,891 130,913 1,051,786 12.3 2.2 9.7 48.8 14.5 12.4 100.0 % 9.7 17.9 1.5 4.0 7.7 8.3 5.8 Net claims paid (Millions of yen) Nine months ended December 31, 2013 (April 1 to December 31, 2013) Nine months ended December 31, 2012 (April 1 to December 31, 2012) Business line Amount Fire and allied insurance Marine insurance Personal accident insurance Voluntary automobile insurance Compulsory automobile liability insurance Others Total 87,690 11,452 54,200 302,977 119,686 58,228 634,235 Rate of change Net loss ratio % (43.9) (11.4) 1.7 1.5 0.1 (2.4) (9.4) 4 Amount Rate of change % 76.7 63.5 58.9 70.0 91.5 52.2 70.4 Net loss ratio % 71,169 15,897 55,564 287,991 118,807 57,710 607,139 (18.8) 38.8 2.5 (4.9) (0.7) (0.9) (4.3) % 56.7 73.4 59.7 64.6 85.1 47.9 64.2
  6. 6. NKSJ Holdings, Inc. Sompo Japan Insurance Inc. (Non-consolidated) Solvency Margin Ratio (Non-consolidated) (Millions of yen) As of December 31, 2013 As of March 31, 2013 (A) Total Solvency Margin (Non-consolidated) Capital and funds, etc. Reserve for price fluctuation Contingency reserve Catastrophic loss reserve General allowance for possible credit losses Unrealized gains and losses on securities (before tax effect deductions) Unrealized gains and losses on land Excess amount of reserve for maturity refunds Subordinated debt, etc. Excess amount of reserve for maturity refunds and subordinated debt, etc. which are excluded from total solvency margin Deductions Others (B) Total Risks (Non-consolidated) (R1 + R2 )2 + (R3 + R4 )2 1,730,735 287,464 23,430 611 406,714 222 742,429 21,386 - 261,560 - - 92,366 61,841 85,456 72,374 462,503 468,405 110,429 + R5 + R6 Underwriting risk ( R1 ) Underwriting risk for third-sector insurance products including accident, sickness and nursing-care insurance ( R2 ) Guaranteed interest rate risk ( R3 ) ( R4 ) Investment risk ( R5 ) Business management risk 111,052 - - 16,828 279,657 10,843 135,276 ( R6 ) Major catastrophe risk (C) Solvency Margin Ratio (Non-consolidated) [ (A) / {(B) × 1/2} ] × 100 Note) 1,493,106 263,299 19,388 611 385,026 215 571,425 22,103 - 261,560 645.6 16,641 309,227 11,001 113,133 % 738.9 The above figures are calculated based on provisions of Articles 86 and 87 of the Ordinance for Enforcement of the Insurance Business Act and Public Notice No. 50 of the Ministry of Finance (1996). The figures as of December 31, 2013 are partly calculated by using the simplified method, for example, some bases for the major catastrophe risk calculation are deemed same as the figures as of September 30, 2013. 5 %
  7. 7. NKSJ Holdings, Inc. NIPPONKOA Insurance Co., Ltd. (Non-consolidated) Quarterly Balance Sheet As of March 31, 2013 As of December 31, 2013 Amount (Millions of yen) Increase (Decrease) Amount Assets: Cash and deposits Call loans Monetary receivables bought Money trusts Securities Loans Tangible fixed assets Intangible fixed assets Other assets Deferred tax assets Allowance for possible credit losses Total assets Liabilities: Underwriting funds: Reserve for outstanding losses and claims Underwriting reserves Other liabilities Reserve for retirement benefits Reserve for bonus payments Reserve for bonus payments to directors Reserves under the special laws: Reserve for price fluctuation Total liabilities Net assets: Shareholders' equity: Common stock Capital surplus Retained earnings Total shareholders' equity Valuation and translation adjustments: Unrealized gains and losses on securities available for sale 135,943 10,000 426 38,783 1,629,386 188,452 121,832 514 144,076 25,441 (1,687) 2,293,170 1,673,107 282,096 1,391,010 79,480 24,946 1,592 - 15,752 15,752 1,794,879 (40,266) 578 (40,844) (15,517) 926 (5,193) (41) 1,903 1,903 (58,189) 91,249 21,702 80,045 192,996 91,249 21,702 96,317 209,268 - - 16,272 16,272 239,450 274,867 35,417 7,653 247,104 440,100 2,293,170 6 (14,526) 28,000 (41) (9,530) 18,963 (14,454) (6,632) (0) 4,187 (14,157) 99 (8,091) 1,713,373 281,518 1,431,855 94,998 24,020 6,786 41 13,849 13,849 1,853,069 Deferred gains and losses on hedges Total valuation and translation adjustments Total net assets Total liabilities and net assets 121,417 38,000 384 29,253 1,648,350 173,997 115,200 514 148,263 11,284 (1,587) 2,285,078 6,061 280,929 490,198 2,285,078 (1,591) 33,825 50,098 (8,091)
  8. 8. NKSJ Holdings, Inc. NIPPONKOA Insurance Co., Ltd. (Non-consolidated) Quarterly Statement of Income Increase (Decrease) (Millions of yen) Rate of change Nine months ended December 31, 2012 (April 1 to December 31, 2012) Amount Nine months ended December 31, 2013 (April 1 to December 31, 2013) Amount 667,307 617,607 480,334 33,283 639,692 581,247 500,512 25,668 (27,614) (36,359) 20,177 (7,614) (4.1) (5.9) 4.2 (22.9) 13,063 12,391 (672) (5.1) (8,525) (100.0) (41,370) 8,554 403 1,198 7,831 (50.3) 17.5 1.3 393.8 30.7 % Ordinary income: Underwriting income: Net premiums written Deposits of premiums by policyholders Interest and dividend income on deposits of premiums, etc. Reversal of reserve for outstanding losses and claims Reversal of underwriting reserves Investment income: Interest and dividend income Investment gains on money trusts Gains on sales of securities Transfer of interest and dividend income on deposits of premiums, etc. Other ordinary income Ordinary expenses: Underwriting expenses: Net claims paid Loss adjustment expenses Net commissions and brokerage fees Maturity refunds to policyholders Provision for reserve for outstanding losses and claims Investment expenses: Investment losses on money trusts Losses on sales of securities Impairment losses on securities Operating, general and administrative expenses Other ordinary expenses: Interest paid Ordinary profit Extraordinary gains: Gains on disposal of fixed assets Extraordinary losses: Losses on disposal of fixed assets Impairment losses Provision for reserves under the special laws: Provision for reserve for price fluctuation Other extraordinary losses Net income before income taxes Income taxes and deferred income taxes Net income Underwriting result: Net premiums written Net claims paid Loss adjustment expenses Net operating expenses: Net commissions and brokerage fees Operating, general and administrative expenses related to underwriting Underwriting result Underwriting profit (loss) Ratios: Net loss ratio Net operating expenses ratio Underwriting result ratio (+) (-) (-) (-) 8,525 - 82,214 48,769 31,580 304 25,537 40,844 57,324 31,984 1,502 33,369 (13,063) (12,391) 931 622,117 530,465 326,897 29,894 84,060 89,374 1,121 603,267 507,951 306,787 29,911 89,352 81,053 - 578 672 190 (18,849) (22,513) (20,109) 16 5,292 (8,320) 578 - 20.4 (3.0) (4.2) (6.2) 0.1 6.3 (9.3) - 5,542 106 2,243 2,121 85,814 294 35 45,189 173 173 11,515 91 1,170 1,925 1,925 8,327 33,847 11,271 22,576 11,902 381 5,416 142 83,180 233 12 36,425 1,466 1,466 15,722 1,221 3,667 1,903 1,903 8,930 22,169 5,897 16,272 6,359 274 3,172 (1,978) (2,634) (61) (22) (8,764) 1,293 1,293 4,206 1,129 2,496 (22) (22) 603 (11,678) (5,374) (6,304) 114.7 257.1 141.4 (93.3) (3.1) (20.9) (63.2) (19.4) 745.7 745.7 36.5 1,228.9 213.3 (1.2) (1.2) 7.2 (34.5) (47.7) (27.9) 480,334 326,897 29,894 166,303 84,060 500,512 306,787 29,911 169,582 89,352 20,177 (20,109) 16 3,279 5,292 4.2 (6.2) 0.1 2.0 6.3 82,242 80,229 (2,012) (2.4) (42,761) 3,892 (5,770) (8,115) 36,990 (12,008) - (308.5) 74.3 34.6 (8.9) 67.3 33.9 (1.2) (7.0) (0.7) 7.7 (%) (%) (%) 7
  9. 9. NKSJ Holdings, Inc. NIPPONKOA Insurance Co., Ltd. (Non-consolidated) Premiums Written and Claims Paid by Business Lines Direct premiums written (excluding deposits of premiums by policyholders) (Millions of yen) Nine months ended December 31, 2013 (April 1 to December 31, 2013) Nine months ended December 31, 2012 (April 1 to December 31, 2012) Business line Amount Fire and allied insurance Marine insurance Personal accident insurance Voluntary automobile insurance Compulsory automobile liability insurance Others Total Deposits of premiums by policyholders 94,807 10,523 38,016 242,687 66,351 68,432 520,818 33,283 % of total amount Rate of change % 18.2 2.0 7.3 46.7 12.7 13.1 100.0 Amount % 3.3 (4.4) (0.2) 1.3 3.3 3.2 1.9 1.9 ―― % of total amount Rate of change % 98,860 11,554 37,315 244,408 73,362 72,550 538,052 25,668 18.4 2.1 6.9 45.4 13.6 13.5 100.0 % 4.3 9.8 (1.8) 0.7 10.6 6.0 3.3 (22.9) ―― Net premiums written (Millions of yen) Nine months ended December 31, 2013 (April 1 to December 31, 2013) Nine months ended December 31, 2012 (April 1 to December 31, 2012) Business line Amount Fire and allied insurance Marine insurance Personal accident insurance Voluntary automobile insurance Compulsory automobile liability insurance Others Total 62,748 9,907 39,599 242,297 63,954 61,827 480,334 % of total amount Rate of change % 13.1 2.1 8.2 50.4 13.3 12.9 100.0 Amount % of total amount % (7.3) (2.7) 1.7 1.1 8.7 (0.1) 0.7 Rate of change % 70,146 11,684 39,767 244,205 68,768 65,939 500,512 14.0 2.3 7.9 48.8 13.7 13.2 100.0 % 11.8 17.9 0.4 0.8 7.5 6.6 4.2 Net claims paid (Millions of yen) Nine months ended December 31, 2013 (April 1 to December 31, 2013) Nine months ended December 31, 2012 (April 1 to December 31, 2012) Business line Amount Fire and allied insurance Marine insurance Personal accident insurance Voluntary automobile insurance Compulsory automobile liability insurance Others Total 64,596 4,031 20,190 150,779 54,706 32,594 326,897 Rate of change Net loss ratio % (42.8) (13.2) (7.3) (1.7) (0.5) 0.1 (14.0) 8 Amount Rate of change % 107.0 42.4 55.4 69.7 92.4 57.6 74.3 Net loss ratio % 50,077 6,059 20,654 142,502 54,146 33,347 306,787 (22.5) 50.3 2.3 (5.5) (1.0) 2.3 (6.2) % 74.9 53.3 56.2 65.7 85.5 54.9 67.3
  10. 10. NKSJ Holdings, Inc. NIPPONKOA Insurance Co., Ltd. (Non-consolidated) Solvency Margin Ratio (Non-consolidated) (Millions of yen) As of December 31, 2013 As of March 31, 2013 (A) Total Solvency Margin (Non-consolidated) Capital and funds, etc. Reserve for price fluctuation Contingency reserve Catastrophic loss reserve General allowance for possible credit losses Unrealized gains and losses on securities (before tax effect deductions) Unrealized gains and losses on land Excess amount of reserve for maturity refunds Subordinated debt, etc. Excess amount of reserve for maturity refunds and subordinated debt, etc. which are excluded from total solvency margin Deductions Others (B) Total Risks (Non-consolidated) (R1 + R2 )2 + (R3 + R4 )2 779,266 209,268 15,752 8 175,143 39 348,327 15,570 - - - - 11,769 26,925 266,095 230,261 57,709 0 0 9,261 148,113 6,145 92,411 ( R6 ) Major catastrophe risk (C) Solvency Margin Ratio (Non-consolidated) [ (A) / {(B) × 1/2} ] × 100 11,769 19,928 57,467 + R5 + R6 Underwriting risk ( R1 ) Underwriting risk for third-sector insurance products including accident, sickness and nursing-care insurance ( R2 ) Guaranteed interest rate risk ( R3 ) ( R4 ) Investment risk ( R5 ) Business management risk Note) 710,509 192,996 13,849 8 178,714 50 303,023 13,706 - - 9,089 142,546 5,438 62,576 534.0 % 676.8 The above figures are calculated based on provisions of Articles 86 and 87 of the Ordinance for Enforcement of the Insurance Business Act and Public Notice No. 50 of the Ministry of Finance (1996). The figures as of December 31, 2013 are partly calculated by using the simplified method, for example, some bases for the major catastrophe risk calculation are deemed same as the figures as of September 30, 2013. 9 %
  11. 11. NKSJ Holdings, Inc. Sonpo 24 Insurance Company Limited (Non-consolidated) Quarterly Balance Sheet As of March 31, 2013 As of December 31, 2013 Amount (Millions of yen) Increase (Decrease) Amount Assets: Cash and deposits Securities Tangible fixed assets Other assets Total assets Liabilities: Underwriting funds: Reserve for outstanding losses and claims Underwriting reserves Other liabilities Reserve for retirement benefits Reserve for bonus payments Reserves under the special laws: Reserve for price fluctuation Deferred tax liabilities Total liabilities Net assets: Shareholders' equity: Common stock Capital surplus Retained earnings Total shareholders' equity Valuation and translation adjustments: Unrealized gains and losses on securities available for sale 2,169 17,196 161 957 20,484 2,387 17,337 223 779 20,727 217 140 62 (178) 242 11,892 4,026 7,866 1,912 158 90 30 30 12 14,096 12,671 4,572 8,099 1,367 181 24 32 32 8 14,285 779 545 233 (545) 22 (66) 2 2 (3) 189 19,000 19,000 (31,639) 6,360 19,000 19,000 (31,577) 6,422 - - 61 61 27 10 (8) 27 6,388 20,484 Total valuation and translation adjustments Total net assets Total liabilities and net assets 19 19 6,441 20,727 (8) 53 242
  12. 12. NKSJ Holdings, Inc. Sonpo 24 Insurance Company Limited (Non-consolidated) Quarterly Statement of Income (Millions of yen) Rate of change Nine months ended December 31, 2012 (April 1 to December 31, 2012) Amount Nine months ended December 31, 2013 (April 1 to December 31, 2013) Amount Increase (Decrease) 9,804 9,725 9,719 10,320 10,303 10,297 515 578 577 5.3 5.9 5.9 5 6 0 6.2 78 84 15 22 (62) (62) (79.8) (73.9) (5) (6) % Ordinary income: Underwriting income: Net premiums written Interest and dividend income on deposits of premiums, etc. Investment income: Interest and dividend income Transfer of interest and dividend income on deposits of premiums, etc. Other ordinary income Ordinary expenses: Underwriting expenses: Net claims paid Loss adjustment expenses Net commissions and brokerage fees Provision for reserve for outstanding losses and claims Provision for underwriting reserves Operating, general and administrative expenses Other ordinary expenses Ordinary profit (loss) Extraordinary losses: Losses on disposal of fixed assets Provision for reserves under the special laws: Provision for reserve for price fluctuation Net income (loss) before income taxes Income taxes and deferred income taxes Net income (loss) Underwriting result: Net premiums written Net claims paid Loss adjustment expenses Net operating expenses: Net commissions and brokerage fees Operating, general and administrative expenses related to underwriting Underwriting result Underwriting profit (loss) Ratios: Net loss ratio Net operating expenses ratio Underwriting result ratio 0 9,860 7,652 5,801 685 656 0 10,252 7,984 5,813 704 687 140 545 (0) - (0) 391 332 12 18 31 (25.6) 4.0 4.3 0.2 2.7 4.8 405 288.1 368 2,205 2 (55) 2 0 2 2 (58) 2 (61) 10,297 5,813 704 2,952 687 577 12 18 93 31 5.9 0.2 2.7 3.3 4.8 2,265 61 2.8 373 (130) 826 53 453 184 66.7 29.4 3.8 11 (36.8) 2.8 (92.4) - 13.6 75.2 2.8 2.8 - - - 2,203 (%) (%) (%) (135) 61 (1) 123 0 0 0 0 123 - 123 9,719 5,801 685 2,859 656 (+) (-) (-) (-) 233 2,267 0 67 3 0 2 2 64 2 61 63.3 28.7 8.0 (3.4) (0.7) 4.2 121.6 -
  13. 13. NKSJ Holdings, Inc. Sonpo 24 Insurance Company Limited (Non-consolidated) Premiums Written and Claims Paid by Business Lines Direct premiums written (excluding deposits of premiums by policyholders) (Millions of yen) Nine months ended December 31, 2013 (April 1 to December 31, 2013) Nine months ended December 31, 2012 (April 1 to December 31, 2012) Business line Amount % of total amount Rate of change % Fire and allied insurance Marine insurance Personal accident insurance Voluntary automobile insurance Compulsory automobile liability insurance Others Total Deposits of premiums by policyholders - - - 9,634 - - 9,634 - - - - 100.0 - - 100.0 Amount % - - - 10.1 - - 10.1 - ―― % of total amount Rate of change % - - - 10,198 - - 10,198 - - - - 100.0 - - 100.0 % - - - 5.9 - - 5.9 - ―― Net premiums written (Millions of yen) Nine months ended December 31, 2013 (April 1 to December 31, 2013) Nine months ended December 31, 2012 (April 1 to December 31, 2012) Business line Amount % of total amount Rate of change % Fire and allied insurance Marine insurance Personal accident insurance Voluntary automobile insurance Compulsory automobile liability insurance Others Total - - - 9,551 168 - 9,719 - - - 98.3 1.7 - 100.0 Amount % of total amount % - - - 10.1 20.4 - 10.3 Rate of change % - - - 10,109 187 - 10,297 - - - 98.2 1.8 - 100.0 % - - - 5.8 11.4 - 5.9 Net claims paid (Millions of yen) Nine months ended December 31, 2013 (April 1 to December 31, 2013) Nine months ended December 31, 2012 (April 1 to December 31, 2012) Business line Amount Rate of change Net loss ratio % Fire and allied insurance Marine insurance Personal accident insurance Voluntary automobile insurance Compulsory automobile liability insurance Others Total - - - 5,622 178 - 5,801 - - - 9.4 3.8 - 9.2 12 Amount Rate of change % - - - 66.0 106.2 - 66.7 Net loss ratio % - - - 5,627 186 - 5,813 - - - 0.1 4.3 - 0.2 % - - - 62.6 99.3 - 63.3
  14. 14. NKSJ Holdings, Inc. Sonpo 24 Insurance Company Limited (Non-consolidated) Solvency Margin Ratio (Non-consolidated) (Millions of yen) As of December 31, 2013 As of March 31, 2013 (A) Total Solvency Margin (Non-consolidated) Capital and funds, etc. Reserve for price fluctuation Contingency reserve Catastrophic loss reserve General allowance for possible credit losses Unrealized gains and losses on securities (before tax effect deductions) Unrealized gains and losses on land Excess amount of reserve for maturity refunds Subordinated debt, etc. Excess amount of reserve for maturity refunds and subordinated debt, etc. which are excluded from total solvency margin Deductions Others (B) Total Risks (Non-consolidated) (R1 + R2 )2 + (R3 + R4 )2 6,805 6,422 32 - 324 - 25 - - - - - - - - - 1,930 1,924 1,678 + R5 + R6 Underwriting risk ( R1 ) Underwriting risk for third-sector insurance products including accident, sickness and nursing-care insurance ( R2 ) Guaranteed interest rate risk ( R3 ) ( R4 ) Investment risk ( R5 ) Business management risk 1,684 - - - 476 68 118 ( R6 ) Major catastrophe risk (C) Solvency Margin Ratio (Non-consolidated) [ (A) / {(B) × 1/2} ] × 100 Note) 6,837 6,360 30 - 410 - 36 - - - - 373 65 133 708.1 % 707.2 The above figures are calculated based on provisions of Articles 86 and 87 of the Ordinance for Enforcement of the Insurance Business Act and Public Notice No. 50 of the Ministry of Finance (1996). The figures as of December 31, 2013 are partly calculated by using the simplified method, for example, some bases for the investment risk calculation are deemed same as the figures as of September 30, 2013. 13 %
  15. 15. NKSJ Holdings, Inc. Saison Automobile and Fire Insurance Company, Limited (Non-consolidated) Quarterly Balance Sheet As of March 31, 2013 As of December 31, 2013 Amount (Millions of yen) Increase (Decrease) Amount Assets: Cash and deposits Money trusts Securities Loans Tangible fixed assets Intangible fixed assets Other assets Allowance for possible credit losses Total assets Liabilities: Underwriting funds: Reserve for outstanding losses and claims Underwriting reserves Other liabilities Reserve for retirement benefits to directors Reserve for bonus payments Reserves under the special laws: Reserve for price fluctuation Deferred tax liabilities Total liabilities Net assets: Shareholders' equity: Common stock Capital surplus Retained earnings Total shareholders' equity Valuation and translation adjustments: Unrealized gains and losses on securities available for sale 1,834 1,369 29,041 10 256 3,224 2,634 (0) 38,371 11,056 - 25,116 7 259 3,437 3,368 (0) 43,246 9,222 (1,369) (3,925) (3) 3 213 733 0 4,874 24,543 5,234 19,309 2,472 34 228 13 13 255 27,546 25,602 5,406 20,196 1,855 40 107 17 17 155 27,778 1,059 172 887 (617) 6 (120) 4 4 (100) 232 15,110 13,348 (18,378) 10,079 20,110 18,347 (23,429) 15,028 5,000 4,999 (5,050) 4,949 745 14 (306) 745 10,824 38,371 Total valuation and translation adjustments Total net assets Total liabilities and net assets 439 439 15,467 43,246 (306) 4,642 4,874
  16. 16. NKSJ Holdings, Inc. Saison Automobile and Fire Insurance Company, Limited (Non-consolidated) Quarterly Statement of Income Increase (Decrease) (Millions of yen) Rate of change Nine months ended December 31, 2012 (April 1 to December 31, 2012) Amount Nine months ended December 31, 2013 (April 1 to December 31, 2013) Amount 13,669 13,249 12,791 309 15,049 14,568 14,288 248 1,380 1,319 1,497 (60) 10.1 10.0 11.7 (19.6) 33 30 (2) (8.1) (114) (100.0) 335 (21) 29 (2) 298 241.0 (14.6) 4,969.9 (98.0) 1,224.9 % Ordinary income: Underwriting income: Net premiums written Deposits of premiums by policyholders Interest and dividend income on deposits of premiums, etc. Reversal of reserve for outstanding losses and claims Investment income: Interest and dividend income Investment gains on money trusts Investment gains on trading securities Gains on sales of securities Transfer of interest and dividend income on deposits of premiums, etc. Other ordinary income Ordinary expenses: Underwriting expenses: Net claims paid Loss adjustment expenses Net commissions and brokerage fees Maturity refunds to policyholders Provision for reserve for outstanding losses and claims Provision for underwriting reserves Investment expenses: Losses on sales of securities Operating, general and administrative expenses Other ordinary expenses: Interest paid Ordinary loss Extraordinary gains: Reversal of reserves under the special laws: Reversal of reserve for price fluctuation Extraordinary losses: Losses on disposal of fixed assets Impairment losses Provision for reserves under the special laws: Provision for reserve for price fluctuation Other extraordinary losses Net loss before income taxes Income taxes and deferred income taxes Net loss Underwriting result: Net premiums written Net claims paid Loss adjustment expenses Net operating expenses: Net commissions and brokerage fees Operating, general and administrative expenses related to underwriting Underwriting result Underwriting profit (loss) Ratios: Net loss ratio Net operating expenses ratio Underwriting result ratio 114 - 139 144 0 2 24 474 123 30 0 323 (33) (30) 280 17,479 10,999 6,512 894 1,117 501 - 6 19,915 12,109 8,135 1,124 1,130 654 172 2 (274) 2,435 1,109 1,623 230 13 153 172 - (97.7) 13.9 10.1 24.9 25.7 1.2 30.6 - 887 5 1 7,735 65 6 (4,865) - - - 177 1 1 4 4 170 (5,043) 7 (5,050) (1,082) (113) (112) 1,430 8 (2) (1,055) (1) (1) (1) 173 0 (0) 4 4 170 (1,231) (8) (1,222) 12,791 6,512 894 7,068 1,117 14,288 8,135 1,124 8,844 1,130 1,497 1,623 230 1,775 13 11.7 24.9 25.7 25.1 1.2 5,951 7,713 1,762 29.6 (1,684) (3,639) (+) (-) (-) (-) 1,969 118 113 6,304 56 9 (3,810) 1 1 1 3 1 2 - - - (3,812) 15 (3,827) (3,815) (5,215) (2,131) (1,575) 57.9 55.3 (13.2) 64.8 61.9 (26.7) 6.9 6.6 (13.5) (%) (%) (%) 15 (55.0) (95.5) (98.6) 22.7 15.3 (32.2) - (100.0) (100.0) (100.0) 4,574.2 0.4 (30.0) - - - - (53.7) - - -
  17. 17. NKSJ Holdings, Inc. Saison Automobile and Fire Insurance Company, Limited (Non-consolidated) Premiums Written and Claims Paid by Business Lines Direct premiums written (excluding deposits of premiums by policyholders) (Millions of yen) Nine months ended December 31, 2013 (April 1 to December 31, 2013) Nine months ended December 31, 2012 (April 1 to December 31, 2012) Business line Amount % of total amount Rate of change % Fire and allied insurance Marine insurance Personal accident insurance Voluntary automobile insurance Compulsory automobile liability insurance Others Total Deposits of premiums by policyholders 2,539 - 3,329 8,074 61 665 14,669 309 17.3 - 22.7 55.0 0.4 4.5 100.0 Amount % 1.5 (100.0) (3.1) 33.6 (43.5) 6.9 15.4 (23.7) ―― % of total amount Rate of change % 1,813 - 3,090 10,148 (1) 722 15,773 248 11.5 - 19.6 64.3 (0.0) 4.6 100.0 % (28.6) - (7.2) 25.7 (102.0) 8.6 7.5 (19.6) ―― Net premiums written (Millions of yen) Nine months ended December 31, 2013 (April 1 to December 31, 2013) Nine months ended December 31, 2012 (April 1 to December 31, 2012) Business line Amount % of total amount Rate of change % Fire and allied insurance Marine insurance Personal accident insurance Voluntary automobile insurance Compulsory automobile liability insurance Others Total 1,764 19 2,046 8,011 284 665 12,791 13.8 0.2 16.0 62.6 2.2 5.2 100.0 Amount % of total amount % (0.1) (10.5) (2.1) 33.6 (15.2) 11.1 18.3 Rate of change % 1,232 21 1,971 10,047 288 727 14,288 8.6 0.2 13.8 70.3 2.0 5.1 100.0 % (30.1) 7.4 (3.7) 25.4 1.4 9.3 11.7 Net claims paid (Millions of yen) Nine months ended December 31, 2013 (April 1 to December 31, 2013) Nine months ended December 31, 2012 (April 1 to December 31, 2012) Business line Amount Rate of change Net loss ratio % Fire and allied insurance Marine insurance Personal accident insurance Voluntary automobile insurance Compulsory automobile liability insurance Others Total 342 13 1,354 4,362 380 59 6,512 (46.8) (25.1) 4.1 15.9 9.0 (59.1) 4.6 16 Amount Rate of change % 21.6 65.5 76.7 61.7 138.9 15.3 57.9 Net loss ratio % 284 44 1,514 5,806 366 119 8,135 (17.1) 240.8 11.8 33.1 (3.5) 101.2 24.9 % 26.8 207.6 89.7 65.4 130.5 23.6 64.8
  18. 18. NKSJ Holdings, Inc. Saison Automobile and Fire Insurance Company, Limited (Non-consolidated) Solvency Margin Ratio (Non-consolidated) (Millions of yen) As of December 31, 2013 As of March 31, 2013 (A) Total Solvency Margin (Non-consolidated) Capital and funds, etc. Reserve for price fluctuation Contingency reserve Catastrophic loss reserve General allowance for possible credit losses Unrealized gains and losses on securities (before tax effect deductions) Unrealized gains and losses on land Excess amount of reserve for maturity refunds Subordinated debt, etc. Excess amount of reserve for maturity refunds and subordinated debt, etc. which are excluded from total solvency margin Deductions Others (B) Total Risks (Non-consolidated) (R1 + R2 )2 + (R3 + R4 )2 18,233 15,028 17 12 2,635 - 534 - - - - - - 4 - 4 2,315 2,512 1,442 + R5 + R6 Underwriting risk ( R1 ) Underwriting risk for third-sector insurance products including accident, sickness and nursing-care insurance ( R2 ) Guaranteed interest rate risk ( R3 ) ( R4 ) Investment risk ( R5 ) Business management risk 1,703 - - 28 825 85 554 ( R6 ) Major catastrophe risk (C) Solvency Margin Ratio (Non-consolidated) [ (A) / {(B) × 1/2} ] × 100 Note) 13,821 10,079 13 11 2,812 - 900 - - - 1,193.6 28 708 90 566 % 1,451.5 The above figures are calculated based on provisions of Articles 86 and 87 of the Ordinance for Enforcement of the Insurance Business Act and Public Notice No. 50 of the Ministry of Finance (1996). The figures as of December 31, 2013 are partly calculated by using the simplified method, for example, some bases for the major catastrophe risk calculation are deemed same as the figures as of September 30, 2013. 17 %
  19. 19. NKSJ Holdings, Inc. NKSJ Himawari Life Insurance, Inc. (Non-consolidated) Quarterly Balance Sheet As of March 31, 2013 As of December 31, 2013 Amount (Millions of yen) Increase (Decrease) Amount Assets: Cash and deposits Call loans Securities: Government bonds Municipal bonds Corporate bonds Domestic stocks Foreign securities Loans: Policy loans Tangible fixed assets Intangible fixed assets Agency accounts receivable Reinsurance accounts receivable Other assets Deferred tax assets Allowance for possible credit losses Total assets Liabilities: Policy reserves: Reserve for outstanding claims Policy reserves Reserve for dividends to policyholders Agency accounts payable Reinsurance accounts payable Other liabilities Reserve for bonus payments to directors Reserve for retirement benefits Reserves under the special laws: Reserve for price fluctuation Total liabilities Net assets: Shareholders' equity: Common stock Capital surplus Retained earnings Total shareholders' equity Valuation and translation adjustments: Unrealized gains and losses on securities available for sale Total valuation and translation adjustments Total net assets Total liabilities and net assets 46,850 - 1,836,684 1,304,484 100,045 372,069 10,366 49,718 35,012 35,012 1,411 2,088 179 1,761 35,259 13,433 (49) 1,972,630 23,106 9,000 1,946,458 1,429,762 78,225 344,521 11,218 82,731 35,566 35,566 1,237 1,328 85 1,869 38,429 14,571 (45) 2,071,608 (23,744) 9,000 109,774 125,278 (21,819) (27,548) 851 33,012 553 553 (173) (759) (93) 107 3,170 1,138 4 98,977 1,856,426 28,345 1,823,979 4,100 3,711 1,254 11,886 52 2,146 2,218 2,218 1,877,696 1,956,734 31,560 1,920,861 4,312 2,331 849 9,619 - 2,498 2,546 2,546 1,974,579 100,307 3,215 96,881 211 (1,379) (404) (2,267) (52) 352 327 327 96,883 17,250 30,000 20,380 67,630 - - 5,871 5,871 27,304 23,526 (3,777) 27,304 94,934 1,972,630 18 17,250 30,000 26,251 73,501 23,526 97,028 2,071,608 (3,777) 2,093 98,977
  20. 20. NKSJ Holdings, Inc. NKSJ Himawari Life Insurance, Inc. (Non-consolidated) Quarterly Statement of Income Nine months ended December 31, 2012 (April 1 to December 31, 2012) Amount Nine months ended December 31, 2013 (April 1 to December 31, 2013) Amount 296,048 268,352 264,968 26,453 24,386 1,630 418 1,242 287,040 127,115 23,791 2,710 22,595 73,111 1,070 95,697 2,554 93,141 304,328 272,763 269,784 30,739 26,496 1,494 2,699 825 291,923 128,911 24,555 5,220 25,017 69,586 1,241 100,096 3,215 96,881 Increase (Decrease) (Millions of yen) Rate of change % Ordinary income: Insurance premiums and other: Insurance premiums Investment income: Interest and dividend income Gains on sales of securities Investment gains on special account Other ordinary income Ordinary expenses: Insurance claims and other: Insurance claims Annuity payments Insurance benefits Surrender benefits Other refunds Provision for policy reserves and other: Provision for reserve for outstanding claims Provision for policy reserves Provision for interest portion of reserve for dividends to policyholders Investment expenses: Interest paid Losses on sales of securities Impairment losses on securities Losses on derivatives Operating expenses Other ordinary expenses Ordinary profit Extraordinary gains: Gains on disposal of fixed assets and other Extraordinary losses: Losses on disposal of fixed assets and other Provision for reserves under the special laws: Provision for reserve for price fluctuation Provision for reserve for dividends to policyholders Net income before income taxes Income taxes and deferred income taxes Net income 1 1,042 70 135 793 24 60,168 3,015 9,007 0 0 246 10 236 236 2,784 5,976 2,584 3,391 19 0 296 51 187 - 37 59,419 3,199 12,404 - - 386 58 327 327 2,831 9,186 3,315 5,871 8,280 4,410 4,815 4,286 2,109 (135) 2,280 (416) 4,882 1,795 763 2,510 2,422 (3,525) 170 4,399 661 3,739 2.8 1.6 1.8 16.2 8.7 (8.3) 544.3 (33.5) 1.7 1.4 3.2 92.6 10.7 (4.8) 15.9 4.6 25.9 4.0 (1) (90.3) (746) (18) 51 (793) 13 (748) 183 3,397 (0) (0) 139 48 91 91 46 3,209 730 2,479 (71.6) (26.4) 38.4 (100.0) 54.5 (1.2) 6.1 37.7 (100.0) (100.0) 56.7 480.6 38.5 38.5 1.7 53.7 28.3 73.1
  21. 21. NKSJ Holdings, Inc. NKSJ Himawari Life Insurance, Inc. (Non-consolidated) Major Business Results Total amount of policies in force (Number in thousands, Yen in hundred millions, %) As of December 31, 2013 Number Amount As of March 31, 2013 Number Amount Individual insurance Individual annuities Group insurance Group annuities 3,051 70 108.2 99.8 ―― ―― ―― ―― 188,796 2,850 31,171 - 108.7 100.2 100.5 - % of previous fiscal year % of previous fiscal year % of previous fiscal year % of previous fiscal year 3,170 70 103.9 99.3 ―― ―― ―― ―― 196,469 2,823 31,000 - 104.1 99.0 99.5 - Note) Amounts of "Individual annuities" represent the sums of annuity fund at the beginning of annuity payment of contracts before the beginning of annuity payment and policy reserves for the contracts after the beginning of annuity payment. Total amount of new policies (Number in thousands, Yen in hundred millions, %) Nine months ended December 31, 2013 (April 1 to December 31, 2013) Number Amount Nine months ended December 31, 2012 (April 1 to December 31, 2012) Number Amount Individual insurance Individual annuities Group insurance Group annuities 289 1 ―― ―― 84.9 58.5 ―― ―― 21,188 75 271 - 94.7 63.5 72.0 - % of previous fiscal year % of previous fiscal year % of previous fiscal year % of previous fiscal year 252 1 ―― ―― 87.2 69.6 ―― ―― 19,396 56 352 - 91.5 73.8 130.0 - Notes) 1. Amounts of "Individual annuities" represent amounts of annuity fund at the beginning of annuity payment. 2. Percentages of previous fiscal year for the nine months ended December 31, 2012 include the results of NIPPONKOA Life Insurance Company, Limited before the merger. Annualized premiums Policies in force Individual insurance Individual annuities Total Medical and survival benefits As of March 31, 2013 % of previous fiscal year 283,952 105.1 16,551 103.7 300,504 105.0 108,455 106.2 (Millions of yen, %) As of December 31, 2013 % of previous fiscal year 288,731 101.7 17,300 104.5 306,032 101.8 112,483 103.7 New policies Individual insurance Individual annuities Total Medical and survival benefits Nine months ended December 31, 2012 (April 1 to December 31, 2012) % of previous fiscal year 25,930 96.7 330 50.2 26,260 95.6 10,102 88.7 (Millions of yen, %) Nine months ended December 31, 2013 (April 1 to December 31, 2013) % of previous fiscal year 22,078 85.1 220 66.7 22,299 84.9 9,128 90.4 Notes) 1. Annualized premiums are calculated by using multipliers for various premium payment terms to the premium per payment. In single premium contracts, the amount is calculated by dividing the premium by the duration of the policy. 2. Annualized premiums for medical and survival benefits include (a) premium related to medical benefits such as hospitalization and surgery benefits, (b) premium related to survival benefits such as specific illness and nursing benefits, and (c) premium related to premium waiver benefits, in which disability cause is excluded but causes such as specific illness and nursing care are included. 3. Percentages of previous fiscal year for the nine months ended December 31, 2012 include the results of NIPPONKOA Life Insurance Company, Limited before the merger. 20
  22. 22. NKSJ Holdings, Inc. NKSJ Himawari Life Insurance, Inc. (Non-consolidated) Solvency Margin Ratio (Non-consolidated) As of March 31, 2013 (A) Total Solvency Margin (Non-consolidated) Capital, etc. Reserve for price fluctuation Contingency reserve General allowance for possible credit losses Unrealized gains and losses on securities (90% of gain or 100% of loss) Unrealized gains and losses on land (85% of gain or 100% of loss) Excess amount of continued Zillmerized reserve Subordinated debt, etc. Excess amount of continued Zillmerized reserve and subordinated debt, etc. which are excluded from total solvency margin Brought in capital, etc. Deductions Others (R1 + R8 )2 + (R2 + R3 + R7 )2 (Millions of yen) As of December 31, 2013 233,561 67,630 2,218 24,398 19 35,357 - 121,943 - 245,725 73,780 2,546 25,151 13 30,453 - 128,140 - (27,386) (26,353) - - 9,379 - - 11,992 + R4 30,032 31,706 Underwriting risk ( R1 ) Underwriting risk for third-sector insurance products including ( R8 ) accident, sickness and nursing-care insurance ( R2 ) Guaranteed interest rate risk Investment risk ( R3 ) ( R7 ) Guaranteed minimum benefit risk Business management risk ( R4 ) 12,088 12,533 6,041 6,219 8,167 14,389 347 820 8,193 15,937 354 864 1,555.3 % 1,549.9 % (B) Total Risks (Non-consolidated) (C) Solvency Margin Ratio (Non-consolidated) [ (A) / {(B) × 1/2} ] × 100 Notes) 1. The above figures are calculated based on provisions of Articles 86 and 87 of the Ordinance for Enforcement of the Insurance Business Act and Public Notice No. 50 of the Ministry of Finance (1996). 2. Guaranteed minimum benefit risk is calculated by using the standard method. 21
  23. 23. NKSJ Holdings, Inc. Sompo Japan DIY Life Insurance Co., Ltd. (Non-consolidated) Quarterly Balance Sheet As of March 31, 2013 As of December 31, 2013 Amount (Millions of yen) Increase (Decrease) Amount Assets: Cash and deposits Securities: Government bonds Domestic stocks Tangible fixed assets Intangible fixed assets Agency accounts receivable Reinsurance accounts receivable Other assets Allowance for possible credit losses Total assets Liabilities: Policy reserves: Reserve for outstanding claims Policy reserves Agency accounts payable Reinsurance accounts payable Other liabilities Reserve for retirement benefits Reserves under the special laws: Reserve for price fluctuation Deferred tax liabilities Total liabilities Net assets: Shareholders' equity: Common stock Capital surplus Retained earnings Total shareholders' equity Valuation and translation adjustments: Unrealized gains and losses on securities available for sale Total valuation and translation adjustments Total net assets Total liabilities and net assets 2,348 2,394 1,473 5 27 90 0 12 242 (3) 5,113 1,598 2,893 1,972 5 32 75 0 43 254 (1) 4,894 (750) 498 498 - 4 (15) (0) 30 11 1 (218) 1,060 217 842 4 30 270 30 18 18 1 1,415 1,011 176 835 4 30 76 37 18 18 0 1,180 (48) (41) (7) (0) 0 (193) 7 0 0 (0) (234) 10,100 2,100 (8,504) 3,695 10,100 2,100 (8,486) 3,713 - - 17 17 2 (0) 2 3,698 5,113 22 1 1 3,714 4,894 (0) 16 (218)
  24. 24. NKSJ Holdings, Inc. Sompo Japan DIY Life Insurance Co., Ltd. (Non-consolidated) Quarterly Statement of Income Nine months ended December 31, 2012 (April 1 to December 31, 2012) Amount Nine months ended December 31, 2013 (April 1 to December 31, 2013) Amount 3,112 2,848 2,790 163 17 146 100 82 18 2,503 890 631 152 2 47 0 37 7 1,532 33 609 - - 0 0 0 608 44 564 2,992 2,939 2,819 3 2 - 49 41 7 2,971 1,273 1,003 163 4 0 0 - - 1,655 42 20 0 0 0 0 0 20 3 17 Increase (Decrease) (Millions of yen) Rate of change % Ordinary income: Insurance premiums and other: Insurance premiums Investment income: Interest and dividend income Gains on sales of securities Other ordinary income: Reversal of reserve for outstanding claims Reversal of policy reserves Ordinary expenses: Insurance claims and other: Insurance claims Insurance benefits Other refunds Investment expenses: Interest paid Losses on sales of securities Impairment losses on securities Operating expenses Other ordinary expenses Ordinary profit Extraordinary gains: Gains on disposal of fixed assets and other Extraordinary losses: Provision for reserves under the special laws: Provision for reserve for price fluctuation Net income before income taxes Income taxes and deferred income taxes Net income 23 (120) 90 29 (159) (14) (146) (51) (40) (11) 468 383 372 10 1 (47) 0 (37) (7) 123 9 (588) 0 0 0 0 0 (588) (41) (547) (3.9) 3.2 1.0 (97.7) (85.4) (100.0) (51.3) (49.6) (60.2) 18.7 43.1 59.0 6.8 45.7 (99.8) 29.4 (100.0) (100.0) 8.0 27.7 (96.6) - - 2.2 2.2 2.2 (96.7) (93.1) (97.0)
  25. 25. NKSJ Holdings, Inc. Sompo Japan DIY Life Insurance Co., Ltd. (Non-consolidated) Major Business Results Total amount of policies in force (Number in thousands, Yen in hundred millions, %) As of December 31, 2013 Number Amount As of March 31, 2013 Number Amount Individual insurance Individual annuities Group insurance Group annuities 44 - ―― ―― 98.9 - ―― ―― 7,252 - - - 96.5 - - - % of previous fiscal year % of previous fiscal year % of previous fiscal year % of previous fiscal year 44 - ―― ―― 98.7 - ―― ―― 7,050 - - - 97.2 - - - Total amount of new policies Nine months ended December 31, 2012 (April 1 to December 31, 2012) Number Amount 2 - ―― ―― 118.2 - ―― ―― 300 - - - 113.2 - - - % of previous fiscal year % of previous fiscal year % of previous fiscal year % of previous fiscal year Individual insurance Individual annuities Group insurance Group annuities (Number in thousands, Yen in hundred millions, %) Nine months ended December 31, 2013 (April 1 to December 31, 2013) Number Amount 1 - ―― ―― 95.9 - ―― ―― 275 - - - 91.6 - - - Annualized premiums Policies in force Individual insurance Individual annuities Total Medical and survival benefits As of March 31, 2013 % of previous fiscal year 3,759 101.1 - - 3,759 101.1 906 102.2 (Millions of yen, %) As of December 31, 2013 % of previous fiscal year 3,783 100.6 - - 3,783 100.6 911 100.6 New policies Individual insurance Individual annuities Total Medical and survival benefits Nine months ended December 31, 2012 (April 1 to December 31, 2012) % of previous fiscal year 139 120.3 - - 139 120.3 42 121.7 (Millions of yen, %) Nine months ended December 31, 2013 (April 1 to December 31, 2013) % of previous fiscal year 130 93.1 - - 130 93.1 39 92.3 Notes) 1. Annualized premiums are calculated by using multipliers for various premium payment terms to the premium per payment. 2. Annualized premiums for medical and survival benefits include (a) premium related to medical benefits such as hospitalization and surgery benefits, (b) premium related to survival benefits such as specific illness, and (c) premium related to premium waiver benefits. 24
  26. 26. NKSJ Holdings, Inc. Sompo Japan DIY Life Insurance Co., Ltd. (Non-consolidated) Solvency Margin Ratio (Non-consolidated) As of March 31, 2013 (A) Total Solvency Margin (Non-consolidated) Capital, etc. Reserve for price fluctuation Contingency reserve General allowance for possible credit losses Unrealized gains and losses on securities (90% of gain or 100% of loss) Unrealized gains and losses on land (85% of gain or 100% of loss) Excess amount of continued Zillmerized reserve Subordinated debt, etc. Excess amount of continued Zillmerized reserve and subordinated debt, etc. which are excluded from total solvency margin Brought in capital, etc. Deductions Others (R1 + R8 )2 + (R2 + R3 + R7 )2 (Millions of yen) As of December 31, 2013 4,224 3,695 18 507 - 2 - - - 4,228 3,713 18 494 - 2 - - - - - - - - - - - + R4 529 516 Underwriting risk ( R1 ) Underwriting risk for third-sector insurance products including ( R8 ) accident, sickness and nursing-care insurance ( R2 ) Guaranteed interest rate risk Investment risk ( R3 ) ( R7 ) Guaranteed minimum benefit risk Business management risk ( R4 ) 411 400 93 91 0 81 - 17 0 84 - 17 (B) Total Risks (Non-consolidated) (C) Solvency Margin Ratio (Non-consolidated) [ (A) / {(B) × 1/2} ] × 100 1,596.1 % 1,636.3 % Note) The above figures are calculated based on provisions of Articles 86 and 87 of the Ordinance for Enforcement of the Insurance Business Act and Public Notice No. 50 of the Ministry of Finance (1996). 25
  27. 27. Supplementary Explanation < Calculation of ratios, etc. > • Underwriting profit = Underwriting income - Underwriting expenses - Operating, general and administrative expenses related to underwriting + Other income and expenses* *Other income and expenses include, but not limited to, income tax expenses for compulsory automobile liability insurance. • Net loss ratio = (Net claims paid + Loss adjustment expenses) / Net premiums written × 100 • Net operating expenses ratio = (Net commissions and brokerage fees + Operating, general and administrative expenses related to underwriting) / Net premiums written × 100 • Underwriting result ratio = (Net premiums written - Net claims paid - Loss adjustment expenses - Net operating expenses) / Net premiums written × 100 < Solvency margin ratio (Non-consolidated) > • In addition to reserves to cover payments for claims, benefits and maturity refunds, etc., it is necessary for insurance companies to maintain sufficient solvency in order to cover against risks which exceed their normal estimates, i.e. occurrence of major catastrophes, fluctuation in mortality rate due to significant changes in key environmental factors and big decline in value of assets held by insurance companies. • (C) Solvency Margin Ratio (Non-consolidated), which is calculated in accordance with the Insurance Business Act, etc. is the ratio of "solvency margin of insurance companies by means of their capital, reserves, etc." ((A) Total Solvency Margin (Non-consolidated)) to "risks which exceed their normal estimates" ((B) Total Risks (Non-consolidated)). • "Risks which exceed their normal estimates" are composed of risks described below. <1> Underwriting risk, Underwriting risk for third-sector insurance products including accident, sickness and nursingcare insurance: Risks of rate of occurrence of insurance claims, etc. in excess of normal estimates (excluding risks relating to major catastrophes) <2> Guaranteed interest rate risk: Risks of invested assets failing to yield assumed interest rates due to the aggravation of investment conditions <3> Investment risk: Risks of securities and other assets held fluctuating in prices in excess of normal estimates <4> Business management risk: Risks beyond normal estimates arising from business management that do not fall under other categories <5> Major catastrophe risk: Risks of the occurrence of major catastrophic losses in excess of normal estimates (risks such as the Great Kanto Earthquake or Isewan Typhoon) <6> Guaranteed minimum benefit risk: Risks of special account assets fluctuating in prices in excess of normal estimates • "Solvency margin of insurance companies by means of their capital, reserves, etc." (total solvency margin (nonconsolidated)) is the sum of total net assets (excluding planned outflows), certain reserves (reserve for price fluctuation, contingency reserve and catastrophic loss reserve, etc.) and parts of unrealized gains and losses on land, etc. • Solvency margin ratio is one of the indicators for the regulatory authorities to monitor financial soundness of insurance companies. Solvency margin ratio exceeding 200% would indicate adequate capability to meet payments of possible insurance claims and others. 26

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