[Reference] Non-Consolidated Financial Data of the Three Life Insurance Companies for the Nine Months Ended December 31, 2016

Sales Results (Individual Insurance and Annuities）

(Billions of yen)

Sum of Three Companies

Taiyo Life

Daido Life

T&D Financial Life

Amount

Change

Amount

Change

Amount

Change

Amount

Change

Annualized premiums of total policies

1,483.7

14.7

1.0%

637.5

(8.8)

(1.4%)

731.2

25.4

3.6%

114.9

(1.8)

(1.6%)

Third Sector products

188.2

9.0

5.1%

103.0

2.7

2.8%

82.5

6.4

8.5%

2.6

(0.1)

(5.7%)

Policy amount in force

61,009.6

427.3

0.7%

21,850.4

(133.0)

(0.6%)

37,316.1

526.0

1.4%

1,843.0

34.3

1.9%

Note: "Change" is presented in comparison with the previous fiscal year-end.

(Billions of yen)

Sum of Three Companies

Taiyo Life

Daido Life

T&D Financial Life

Amount

Change

Amount

Change

Amount

Change

Amount

Change

Annualized premiums of new policies

95.7

(4.8)

(4.8%)

26.3

(1.6)

(6.0%)

64.0

2.8

4.7%

5.3

(6.0)

(53.0%)

Third Sector products

21.6

2.2

11.3%

10.7

1.6

18.2%

10.8

0.5

5.1%

0.0

0.0

185.9%

New policy amount

4,723.6

(10.6)

(0.2%)

1,647.1

(139.9)

(7.8%)

2,921.2

152.8

5.5%

155.2

(23.5)

(13.2%)

Notes:

  1. "Change" is presented in comparison with the same period of the previous fiscal year.

    Sum of Three Companies

    Taiyo Life

    Daido Life

    T&D Financial Life

    Amount

    Change

    Amount

    Change

    Amount

    Change

    Amount

    Change

    Surrender and lapse rate

    4.30%

    0.04 points

    4.87%

    (0.08 points)

    2.25%

    (0.37 points)

    Surrender and lapse amount

    2,776.8

    (16.7)

    (0.6%)

    944.3

    (0.0)

    (0.0%)

    1,791.8

    (10.1)

    (0.6%)

    40.6

    (6.5)

    (13.9%)

  2. New policy amount includes increase from conversion.

Notes:

  1. "Change" is presented in comparison with the same period of the previous fiscal year.

  2. "Surrender and lapse rate" is not annualized.

(Billions of yen)

Summary of Operations

(Billions of yen)

T&D Holdings (Consolidated)

Taiyo Life

Daido Life

T&D Financial Life

Amount

Change

Amount

Change

Amount

Change

Amount

Change

Ordinary revenues

1,439.0

(61.7)

(4.1%)

631.7

(14.6)

(2.3%)

706.2

7.8

1.1%

117.0

(52.0)

(30.8%)

Income from insurance premiums and others

1,076.2

(89.7)

(7.7%)

447.7

(29.1)

(6.1%)

567.2

10.0

1.8%

58.6

(71.1)

(54.8%)

Investment income

307.9

30.8

11.1%

177.4

28.6

19.3%

113.5

(6.5)

(5.5%)

18.4

8.6

88.9%

Interest, dividends and income from real estate for rent

203.7

(15.2)

(7.0%)

103.0

(7.0)

(6.4%)

96.2

(8.3)

(8.0%)

5.6

0.2

3.8%

Other ordinary income

54.8

(2.8)

(4.9%)

6.5

(14.2)

(68.4%)

25.4

4.3

20.6%

39.8

10.3

35.3%

Ordinary expenses

1,306.1

(59.7)

(4.4%)

572.6

(12.3)

(2.1%)

639.0

13.0

2.1%

111.5

(56.9)

(33.8%)

Insurance claims and other payments

878.4

(129.4)

(12.8%)

411.9

(66.9)

(14.0%)

363.2

(11.6)

(3.1%)

101.8

(51.1)

(33.4%)

Provision for policy and other reserves

137.5

30.8

28.9%

18.5

18.5

159,114.2%

153.1

15.2

11.0%

0.0

(0.0)

(51.4%)

Investment expenses

90.8

38.7

74.5%

58.9

32.9

126.1%

31.2

9.0

40.7%

1.2

(3.1)

(71.6%)

Other ordinary expenses

52.2

0.9

1.9%

25.7

1.9

8.0%

14.5

(0.0)

(0.4%)

1.0

(0.3)

(26.7%)

Ordinary profit

132.8

(2.0)

(1.5%)

59.0

(2.3)

(3.8%)

67.2

(5.2)

(7.2%)

5.4

4.8

837.8%

Extraordinary gains

0.2

0.1

121.8%

0.2

0.2

6,086.3%

-

(13.2)

-

-

-

-

Extraordinary losses

24.2

2.1

9.5%

14.3

(0.5)

(3.6%)

9.6

2.6

37.6%

0.1

(0.1)

(47.9%)

Provision for reserve for policyholder dividends

24.3

(0.2)

(1.1%)

13.9

0.0

0.0%

10.3

(0.2)

(2.7%)

(0.0)

(0.0)

37.3%

Total income taxes

18.5

(7.5)

(28.9%)

5.9

(3.4)

(37.1%)

10.9

(9.0)

(45.3%)

1.3

1.2

1,511.4%

Profit attributable to owners of parent

65.8

3.8

6.2%

25.0

1.9

8.4%

36.2

(11.7)

(24.4%)

3.9

3.8

3,166.4%

Notes:

  1. "Change" is presented in comparison with the same period of the previous fiscal year.

  2. T&D Holdings' consolidated figures do not always correspond to the sum of the three life insurance companies' figures.

  3. Simple sum of three companies' income from insurance premiums and others is ¥1,073.6 billion (down 7.8% compared to the same period of the previous fiscal year).

  4. Decrease in Daido Life's extraordinary gains of ¥13.2 billion from the same period of the previous fiscal year are mainly due to the gains on sale of real estate to Taiyo Life in the previous fiscal year. This will be eliminated as intra-company transactions on consolidated basis which will have no impact on profit/loss.

  5. Extraordinary losses of ¥24.2 billion include provision for reserve for price fluctuations of ¥21.9 billion (Taiyo Life: ¥13.5 billion, Daido Life: ¥8.1 billion, T&D Financial Life: ¥0.1 billion).

  6. The amount of net income is stated in the column of profit attributable to owners of parent for the three life insurance companies.

    Other Indicators (1)

    Core Profit and Positive Spread

    (Billions of yen)

    Sum of Three Companies

    Taiyo Life

    Daido Life

    T&D Financial Life

    Amount

    Change

    Amount

    Change

    Amount

    Change

    Amount

    Change

    Core Profit

    118.1

    (13.3)

    (10.2%)

    38.9

    (5.7)

    (12.8%)

    78.8

    (9.2)

    (10.5%)

    0.3

    1.5

    -

    Positive spread (negative spread)

    18.6

    (14.2)

    (43.4%)

    4.7

    (4.5)

    (48.9%)

    16.1

    (9.8)

    (37.9%)

    (2.2)

    0.1

    (4.6%)

    Note: "Change" is presented in comparison with the same period of the previous fiscal year.

    Solvency Margin Ratio and Adjusted Net Assets

    T&D Holdings

    Taiyo Life

    Daido Life

    T&D Financial Life

    Amount

    Change

    Amount

    Change

    Amount

    Change

    Amount

    Change

    Solvency margin ratio

    951.1%

    60.5 points

    1,271.8%

    (70.1 points)

    1,387.8%

    127.1 points

    Consolidated solvency margin ratio

    1,177.9%

    22.1 points

    961.0%

    62.5 points

    1,281.4%

    68.6 points

    Notes:

    1. "Change" is presented in comparison with the previous fiscal year-end.

    2. T&D Financial Life does not state consolidated solvency margin ratio because the company does not own subsidiary companies.

      3. (Billions of yen)

      T&D Holdings (Consolidated)

      Taiyo Life

      Daido Life

      T&D Financial Life

      Amount

      Change

      Amount

      Change

      Amount

      Change

      Amount

      Change

      Adjusted net assets

      2,671.2

      (256.4)

      1,082.5

      (168.6)

      1,376.3

      (59.8)

      199.1

      (29.2)

      Note: "Change" is presented in comparison with the previous fiscal year-end.

      Other Indicators (2)

      Net Unrealized Gains/Losses on Securities (General Account)

      (Billions of yen)

      Sum of Three Companies

      Taiyo Life

      Daido Life

      T&D Financial Life

      Amount

      Change

      Amount

      Change

      Amount

      Change

      Amount

      Change

      Net unrealized gains/losses on securities

      1,264.4

      (300.9)

      621.2

      (187.9)

      536.3

      (82.9)

      106.9

      (30.0)

      Domestic bonds

      813.4

      (179.8)

      404.1

      (100.9)

      335.9

      (64.4)

      73.3

      (14.4)

      Domestic stocks

      299.8

      4.8

      131.2

      (18.9)

      168.6

      23.8

      -

      -

      Foreign securities

      72.8

      (129.9)

      65.4

      (79.4)

      7.6

      (49.3)

      (0.2)

      (1.1)

      Net unrealized gains/losses on land, etc.

      44.5

      0.1

      14.8

      (0.6)

      29.7

      0.8

      -

      -

      Notes:

      1. "Change" is presented in comparison with the previous fiscal year-end.

      2. Figures of net unrealized gains/losses on securities are those of securities with market value.

      3. Net unrealized gains/losses on land, etc. are basically calculated based on the appraisal price. Less important properties are calculated based on the posted price, etc..

      Market Consistent Embedded Value (MCEV) [Estimate]

      Quarterly MCEV results are estimates calculated partly using simplified methods and are not reviewed by third party specialists.

      (Billions of yen)

      T&D Life Group (Group MCEV)

      Taiyo Life

      Daido Life

      T&D Financial Life

      Amount

      Change

      Amount

      Change

      Amount

      Change

      Amount

      Change

      MCEV

      2,131.6

      237.9

      753.8

      28.0

      1,286.8

      208.7

      94.1

      0.6

      Notes:

      1. "Change" is presented in comparison with the previous fiscal year-end.

      2. Group MCEV is the sum of "MCEV of life insurance business: ¥2,104.7 billion" and "net asset value of business other than life insurance business: ¥26.9 billion."

      (Billions of yen)

      T&D Life Group (Sum of Three Companies)

      Taiyo Life

      Daido Life

      T&D Financial Life

      Amount

      Change

      Amount

      Change

      Amount

      Change

      Amount

      Change

      Value of new business

      72.8

      (5.7)

      27.6

      1.8

      45.6

      (3.2)

      (0.4)

      (4.4)

      Note: "Change" is presented in comparison with the same period of the previous fiscal year.

      [Reference] Forecasts for the Year Ending March 31, 2017

      T&D Holdings (Consolidated)

      Forecasts for the year ending March 31, 2017, have not been changed from the announcement on May 13, 2016.

      (Billions of yen)

      Year Ended March 31, 2016

      Forecast for the

      Year Ending March 31, 2017

      Ordinary revenues

      2,025.9

      Approx. 1,750

      Ordinary profit

      171.4

      Approx. 164

      Profit attributable to owners of parent

      72.5

      Approx. 73

      Annual dividends per share forecast has been revised to ¥32.5 (increase of ¥2.5) from the previous forecast of ¥30.

      (Yen)

      Year Ended March 31, 2016

      Forecast for the

      Year Ending March 31, 2017

      Annual dividends per share

      30

      32.5 (including year-end dividend: 17.5)

      Three Life Insurance Companies (Non-consolidated)

      (Billions of yen)

      Taiyo Life

      Daido Life

      T&D Financial Life

      Ordinary revenues

      Approx. 800

      Approx. 900

      Approx. 170

      Ordinary profit

      Approx. 74

      Approx. 88

      Approx. 1

      Net income

      Approx. 29

      Approx. 43

      Approx. 1

      Note: The differences between the consolidated figures and the sum of the figures of the three life insurance companies are mainly due to the intercompany reconciliation among the consolidated companies including the three life insurance companies.

      Actual results may differ from expectations based on risks and uncertainties that may affect the Company's businesses.

    T&D Holdings Inc. published this content on 14 February 2017 and is solely responsible for the information contained herein.
    Distributed by Public, unedited and unaltered, on 14 February 2017 19:53:14 UTC.

    Original documenthttp://www.td-holdings.co.jp/en/news/file/1819/1/h_e20170214_02.pdf

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