第一生命ホールディングス（8750） – Supplementary Materials for the Fiscal Year Ended March 31, 2022 (The Dai-ichi Frontier Life Insurance Co., Ltd.)

[Unofficial Translation] May 12, 2022 Seiji Inagaki President and Representative Director Dai-ichi Life Holdings, Inc. Code: 8750 (TSE Prime section) Supplementary Materials for the Fiscal Year Ended March 31, 2022 (The Dai-ichi Frontier Life Insurance Co., Ltd.) May 12, 2022Financial Results for the Fiscal Year Ended March 31, 2022The Dai-ichi Frontier Life Insurance Co., Ltd. (the “Company”; President: Masao Taketomi) announcesits financial results for the fiscal year ended March 31,2022[Contents]1. Business Highlights2. Policies in Force as of March 31, 2022 by Benefit Type3. Investment of General Account Assets4. Unaudited Balance Sheet5. Unaudited Statement of Earnings6. Breakdown of Ordinary Profit (Fundamental Profit)7. Unaudited Statement of Changes in Net Assets8. Status of loans pursuant to the Insurance Business Act9. Solvency Margin Ratio10. Status of Separate Account for the Fiscal Year ended March 31, 202211. Consolidated Financial Summary………p.1………p.3………p.4………p.10………p.17………p.19………p.21………p.22………p.23………p.24………p.25Please note that this is an unofficial translation of the original disclosure in Japanese. 1. Business Highlights(1) Annualized Net PremiumsPolicies in ForceIndividual insuranceIndividual annuitiesTotalMedical and survival benefitsNew Policies(millions of yen except percentages) As of March 31,2021% of March 31,2020 totalAs of March 31,2022% of March 31,2021 total418,614442,393861,0071,581117.198.2106.6- 496,071402,319898,3913,064(millions of yen except percentages) Year ended March31, 2021% of March 31,2020 totalYear ended March31, 2022% of March 31,2021 totalIndividual insuranceIndividual annuitiesTotalMedical and survival benefits52,91224,64377,5561,55772.252.964.7- 60,20057,737117,9381,384Note:1. Annualized net premiums are calculated by multiplying the per-premium payments by a multiplier that depends on the premium payment terms. For single-premium contracts, the amount is calculated by dividing the premium by the duration of the policy.2. “Medical and survival benefits” include annualized net premiums related to medical benefits (e.g. hospitalization and surgery benefits), survival benefits (e.g. specified illness and nursing care benefits), (cid:10) and premiums related to premium waiver benefits (e.g. excluding disability-related causes but including causes related to specified illness and nursing care).118.590.9104.3193.8113.8234.3152.188.9- 1 -The Dai-ichi Frontier Life Insurance Co., Ltd.(2) Policies in Force and New Policies- 2 -The Dai-ichi Frontier Life Insurance Co., Ltd.Policies in Force New PoliciesNote: Amount of new policies (new business) for individual annuities is equal to the amount required to fund annuity payments when they commence.-Group annuities——Group insurance——Individual annuities5758.6218,21656.0218,216-Individual insurance6957.2519,03363.1519,033Year ended March 31, 2021Number of policiesAmount(thousands)% of March31, 2020total(millions of yen)% of March31, 2020totalNew BusinessNet increasefrom conversionsIndividual annuities101176.7450,050206.2450,050–Group annuities——Group insurance—–% of March31, 2021totalNew BusinessNet increasefrom conversionsIndividual insurance81117.1609,396117.4Year ended March 31, 2022Number of policiesAmount(thousands)% of March31, 2021total(millions of yen)609,396- when they commence for annuities that have not yet commenced paying out and (b) policy reserves for annuities that have commenced paying out.—Group annuities——Group insurance——-Note: Policy amount in force for individual annuities is equal to the sum of (a) the amount required to fund annuity payments 112.86,037,397117.1Individual annuities82990.64,166,33998.8731Individual insurance734106.05,154,172117.782788.33,797,03091.1(millions ofyen)% of March31, 2020total(thousands)% of March31, 2021total(millions ofyen)% of March 31,2021 totalAs of March 31, 2021As of March 31, 2022Number of policiesAmountNumber of policiesAmount(thousands)% of March31, 2020total2. Policies in Force as of March 31, 2022 by Benefit TypeIndividual InsuranceIndividual annuitiesGroup InsuranceTotalPolicies(thousands)Amount(millions of yen)Policies(thousands)Amount(millions of yen)Policies(thousands)Amount(millions of yen)Policies(thousands)Amount(millions of yen)Death benefitsGeneralAccidentalOtherSurvival benefitsHospitalization benefitsAccidentalIllnessOtherInjury benefitsSurgery benefitsSurvival benefits827 6,037,397———731—3,797,030————————–Group annuitiesFinancial insuarance /Financial annuitiesTotalPolicies(thousands)Amount(millions of yen)Policies(thousands)Amount(millions of yen)Policies(thousands)Amount(millions of yen)827 6,037,397–731 3,797,030——————————–Medical care insurancePolicies(thousands)Amount(millions of yen)Group disabilityPolicies(thousands)Amount(millions of yen)Hospitalization benefitsDisability benefits–Note: Survival benefit amounts for individual annuities are the sum of (a) the amount required to fund annuity payments when they commence for annuities that have not yet commenced paying out and (b) policy reserves for annuities that have commenced paying out.- 3 -The Dai-ichi Frontier Life Insurance Co., Ltd.3. Investment of General Account Assets(1) Overview of Investment of General Account Assets for the Fiscal Year ended March 31, 2022A. Investment EnvironmentIn fiscal 2021, the Japanese economy got reversal against the recession in fiscal 2020, but the recovery speed remained moderatedue to COVID-19 pandemic and the voluntary restraint. Although in third quarter, when the spread of infection settled down for amoment, domestic demand recovered strongly, since the beginning of 2022, consumption dropped again due to drastic increasinginfected people with the Omicron COVID-19 variant. And in overseas market, the U.S. economy recovered as employmentstatistics and income improved in the environment which had prolonged supply constraints and rising prices put downwardpressure on the economy. On the other hand, the growth of the Chinese economy slowed down from the downturn in the realestate market and the curtailment of economic activities under the Zero-COVID policy.Amid these economic conditions, the operational environment was as follows.[Domestic interest rates]Yields on 10-year JGBs continued to be controlled at around 0% as the Bank of Japan held its accommodative monetary policy.However, overseas interest rates have risen sharply because central banks of each country have tightened their monetary policiessince the beginning of the year, and domestic interest rates followed them.Yield on ten-year government bonds:April 1, 2021March 31, 20220.090%0.210%[U.S. Interest Rates and Foreign Currency]The Federal Reserve Board resolved to raise interest rates in response to rapid inflation in the United States, bringing to an end itszero-interest-rate-policy, which had been in place since March 2020. The ten-year US Treasury Note yield rose and the US dollartrended upwards due to expectations in financial markets that incremental interest rate hikes will continue.Yield on ten-year U.S. government bonds:yen/U.S. dollar:April 1, 2021March 31, 2022April 1, 2021March 31, 20221.740%2.338%¥110.71¥122.39[Australian Interest Rates and Foreign Currency]The ten-year Australian government bond yield trended higher due to the interest rate rise in the United States and anticipatednormalization of the Australian economy. Against the backdrop of rising resource prices and expectations that the Reserve Bank ofAustralia would raise interest rates, the Australian dollar at one point rose to above 94 Japanese yen.Yield on ten-year Australian government bonds:April 1, 2021March 31, 2022April 1, 2021March 31, 20221.786%2.840%¥84.36¥92.00yen/Australian dollar:B. Investment PoliciesIn view of the liability characteristics of life insurance policies, assets in the general account are invested in accordance withasset-liability management (ALM) principles with the primary objective of steadily paying annuities, insurance proceeds, andbenefits over the long term. As to the yen- and foreign currency-denominated fixed products, those assets are primarily investedin yen-denominated bonds and foreign currency-denominated bonds.Also, trades are to be carried out for the purposes such as mitigating the guaranteed minimum benefit risk on individual variableannuities.C. Investment Results〈 Assets 〉The Company invested primarily in yen-denominated bonds. Foreign-currency denominated insuarance were invested inforeign-currency denominated bonds. Also, derivative trades are to be carried out for the purposes such as mitigating theguaranteed minimum benefit risk on individual variable annuities.〈 Investment Income and Expenses 〉Investment income was 676,835 million yen mainly due to foreign exchange gains (465,724 million yen), interest and dividendsreceived (173,112 million yen), and gains on sale of securities (36,972 million yen). Investment expenses were　21,695 millionyen, mainly due to losses on sale of securities (12,827 million yen), derivative transaction losses (5,822 million yen), and losseson money held in trust (2,365 million yen).- 4 -The Dai-ichi Frontier Life Insurance Co., Ltd.(2) Asset CompositionCash, deposits, and call loansSecurities repurchased under resale agreementsDeposit paid for securities borrowing transactionsMonetary claims boughtTrading account securitiesMoney held in trustSecuritiesDomestic bondsDomestic stocksForeign securitiesForeign bondsForeign stocks and other securitiesOther securitiesLoansReal estateDeferred tax assetsOthersReserve for possible loan lossesTotalForeign currency-denominated assetsNote:“Real estate” represents the value of buildings.(3) Changes (Increase/Decrease) in AssetsCash, deposits, and call loansSecurities repurchased under resale agreementsDeposit paid for securities borrowing transactionsMonetary claims boughtTrading account securitiesMoney held in trustSecuritiesDomestic bondsDomestic stocksForeign securitiesForeign bondsForeign stocks and other securitiesOther securitiesLoansReal estateDeferred tax assetsOthersReserve for possible loan lossesTotalForeign currency-denominated assetsAs of March 31, 2021%(millions of yen except percentages)As of March 31, 2022%Carrying value785,833- – – – 1,123,2046,481,5461,645,775- 4,650,6644,650,664- 185,106- 95- 270,224(14)8,660,8885,213,036Carrying value1,051,750- – 16,006- 1,074,7566,394,8991,663,559- 4,559,1184,559,118- 172,221- 79542,680430,490(16)9,011,3635,300,1059.1- – – – 13.074.819.0- 53.753.7- 2.1- 0.0- 3.1(0.0)100.060.2Year ended March 31, 2021Year ended March 31, 2022(millions of yen)11.7- – 0.2- 11.971.018.5- 50.650.6- 1.9- 0.00.54.8(0.0)100.058.8265,917- – 16,006- (48,447)(86,646)17,783- (91,546)(91,546)- (12,884)- 69942,680160,266(1)350,47487,068520,943- – – – 118,415149,840146,719- 2,2432,243- 877- 6- 29,908(3)819,11171,974- 5 -The Dai-ichi Frontier Life Insurance Co., Ltd.(4) Investment IncomeInterest and dividendsInterest from bank depositsInterest and dividends from securitiesInterest from loansRental incomeOther interest and dividendsGains on trading account securitiesGains on money held in trustGains on investment in trading securitiesGains on sale of securitiesGains on sale of domestic bondsGains on sale of domestic stocksGains on sale of foreign securitiesOthersGains on redemption of securitiesDerivative transaction gainsForeign exchange gainsReversal of reserve for possible loan lossesOther investment incomeTotal(5) Investment ExpensesInterest expensesLosses on trading account securitiesLosses on money held in trustLosses on investment in trading securitiesLosses on sale of securitiesLosses on sale of domestic bondsLosses on sale of domestic stocksLosses on sale of foreign securitiesOthersLosses on valuation of securitiesLosses on valuation of domestic bondsLosses on valuation of domestic stocksLosses on valuation of foreign securitiesOthersLosses on redemption of securitiesDerivative transaction lossesForeign exchange lossesProvision for reserve for possible loan lossesWrite-down of loansDepreciation of rented real estate and othersOther investment expensesTotalYear ended March 31, 2021Year ended March 31, 2022(millions of yen)Year ended March 31, 2021Year ended March 31, 2022(millions of yen)180,16934179,756- – 378- 23,330- 94,8352,248- 92,587- 292122,761478,295- 8899,6934- – – 1,220229- 990- – – – – – 138- – 3- – 6171,984173,11229172,612- – 470- – – 36,9723,369- 33,603- 1,022- 465,724- 3676,83513- 2,365- 12,8271,498- 11,329- – – – – – 05,822- 1- – 66321,695- 6 -The Dai-ichi Frontier Life Insurance Co., Ltd.(6) Other Information on InvestmentsA. Rates of returnCash, deposits, and call loansSecurities repurchased under resale agreementsDeposit paid for securities borrowing transactionsMonetary claims boughtTrading account securitiesMoney held in trustSecuritiesDomestic bondsDomestic stocksForeign securitiesLoansReal EstateTotalForeign investments(%)Year ended March 31, 2021 Year ended March 31, 20221.113.37——-2.3013.472.8117.6912.0418.23—–1.26-(0.22)10.903.9213.848.1313.93Notes: 1. Rates of return above were calculated by dividing the net investment income included in net surplus from operations by the average daily balance on a book value basis. 2. “Foreign investments” include yen-denominated assets.B. Valuation Gains and Losses on Trading Securities(millions of yen)As of March 31, 2021As of March 31, 2022Carrying valueon the balancesheetValuation gains(losses) included inthe statement ofearningsCarrying valueon the balancesheetValuation gains(losses) included inthe statement ofearnings1,123,20423,3301,074,756(2,365)Trading securitiesNote: Figures in this table include money held in trust and other instruments classified as trading securities.- 7 -The Dai-ichi Frontier Life Insurance Co., Ltd.C. Fair Value Information on Securities (Other than trading securities)Book valueFair value(millions of yen)Gains (losses)GainsLossesPolicy-reserve-matching bonds3,593,2873,610,85617,56888,43670,867Stocks of subsidiaries and affiliatesSecurities available for sale2,829,7562,817,617(12,139)As of March 31, 2022Bonds held to maturityDomestic bondsDomestic stocksForeign securitiesForeign bondsForeign stocks and other securitiesOther securitiesMonetary claims boughtCertificates of depositOthersTotalDomestic bondsDomestic stocksForeign securitiesForeign bondsOther securitiesMonetary claims boughtCertificates of depositOthersAs of March 31, 2021Bonds held to maturityForeign stocks and other securitiesStocks of subsidiaries and affiliatesSecurities available for saleDomestic bondsDomestic stocksForeign securitiesForeign bondsForeign stocks and other securitiesOther securitiesMonetary claims boughtCertificates of depositOthersTotalDomestic bondsDomestic stocksForeign securitiesForeign bondsForeign stocks and other securitiesOther securitiesMonetary claims boughtCertificates of depositOthers472,367475,8863,5182,171,1362,153,5032,171,1362,153,503(17,632)(17,632)170,14516,107172,22116,0062,076(101)35,5507,21326,26126,2612,07647,6893,69443,89343,8931016,423,0446,428,4741,660,0401,702,9405,42942,900123,98754,715118,55711,8154,576,7504,537,3054,576,7504,537,305(39,444)(39,444)67,19567,195106,639106,639170,14516,107172,22116,0062,076(101)2,0761012,876,5823,079,044460,427476,511202,46216,084211,77716,4022,245,6552,417,4272,245,6552,417,427171,771171,771180,768180,768170,500185,10614,60614,6066,279,0836,688,3531,629,6911,716,011409,26986,320439,11389,0564,478,8924,787,2354,478,8924,787,235308,342308,342335,451335,451170,500185,10614,60614,6069,3153188,9978,99729,8442,73627,10827,108——————————————————————————————————————–Policy-reserve-matching bonds3,402,5013,609,308206,807227,33620,529Note: The table above includes assets which are considered appropriate to handle as securities as defined in theFinancial Instruments and Exchange Act.- 8 -The Dai-ichi Frontier Life Insurance Co., Ltd.*The book value of stocks and other securities without market value and of investment partnerships etc. are as follows:Not applicable.D. Fair value Information on Money Held in TrustCarrying value onthe balance sheetFair value(millions of yen)Gains (losses)GainsLossesAs of March 31, 2022As of March 31, 20211,074,7561,123,2041,074,7561,123,204(2,365)23,3302,42125,7734,7862,443Notes:1. Fair value equivalents appearing in this table are based on prices calculated using a reasonable method by trustees of money held in trust. 2. Gains (losses) are valuation gains (losses) that were included in the statement of earnings.*Information on money held in trust for investment purposes is as follows:As of March 31, 2021As of March 31, 2022Carrying value onthe balance sheetValuation gains(losses) included inthe statements ofearningsCarrying value onthe balance sheetValuation gains(losses) included inthe statements ofearnings(millions of yen)Money held in trust for investment purposes1,123,20423,3301,074,756(2,365)*Information on money held in trust classified as held-to-maturity, policy-reserve-matching, or other money held in trust are as follows:Not applicable.- 9 -The Dai-ichi Frontier Life Insurance Co., Ltd.4. Unaudited Balance Sheet(ASSETS)Cash and depositsCashBank depositsMonetary claims boughtMoney held in trustSecuritiesGovernment bondsLocal government bondsCorporate bondsForeign securitiesOther securitiesTangible fixed assetsBuildingsLeased assetsOther tangible fixed assetsIntangible fixed assetsSoftwareOther intangible fixed assetsReinsurance receivablesOther assetsAccounts receivablePrepaid expensesAccrued revenueDepositsMargin money for futures trading Defferential account for futures tradingDerivativesCash collateral paid for financial instrumentsSuspense paymentsOther assetsDeferred tax assetsReserve for possible loan lossesTotal assetsAs ofMarch 31,2021AmountAs ofMarch 31,2022Amount790,120790,120–1,123,2047,514,371516,32146,2541,083,1994,662,6471,205,948591953745812,17112,171094,021164,47840,40791642,7521,1701,41836173,8392,727524362-(14)9,698,9421,052,18101,052,18116,0061,074,7567,311,446518,92146,3721,098,2654,570,2901,077,5961,36179515541015,41615,4160104,651318,601171,8891,31843,3332,8741,68081389,8136,00351336142,680(16)9,937,086(LIABILITIES)Policy reserves and othersReserves for outstanding claimsPolicy reservesReinsurance payableOther liabilitiesPayable under securities lending transactionsCorporate income tax payableAccounts payableAccrued expensesDeposits receivedGuarantee deposits receivedDerivativesCash collateral received for financial instrumentsLease liabilitiesSuspense receiptsReserve for price fluctuationsDeferred tax liabilitiesTotal liabilities(NET ASSETS)Capital stockCapital surplusLegal capital surplusRetained earningsOther retained earningsRetained earnings brought forwardTotal shareholders’ equityNet unrealized gains on securities, net of taxTotal of valuation and translation adjustmentsAs ofMarch 31,2021Amount(millions of yen)As ofMarch 31,2022Amount8,213,33323,8998,189,434719,586396,180233,9158,3906,4516,70966683,63115,18538,191383,00030,99456,6899,416,783117,50067,50067,500(48,613)(48,613)(48,613)136,386145,772145,7728,523,79524,6688,499,126636,869473,476239,9333,24764,4767,96623473,91731,96646,9271724,63336,894-9,671,036117,50067,50067,50090,08490,08490,084275,084(9,033)(9,033)Total net assetsTotal liabilities and net assets282,1589,698,942266,0509,937,086- 10 -The Dai-ichi Frontier Life Insurance Co., Ltd.Notes to the Unaudited Balance Sheet as of March 31,20221 Securities (including those monetary claims bought conforming to marketable securities, and also those marketable securitiesmanaged as trust assets in money held in trust) are valued as follows:(a) Trading securities are valued at fair value (sales cost is calculated with the moving-average method).(b) Policy-reserve-matching bonds (bonds defined by the Japanese Institute of Certified Public Accountants (JICPA) Industry AuditCommittee Report No.21 entitled Treatment of Accounting and Auditing Concerning Policy-reserve-matching Bonds in theInsurance Industry) are valued using the moving-average amortized cost (straight line) method.(c) Other securities are valued at fair value using market prices as of the first half of the year (sales cost is calculated with themoving-average method).Valuation differences on other securities are reported as a component of net assets.2 Risk management policies regarding policy-reserve matching bonds are as follows:The Company categorizes its insurance products into sub-groups by the attributes of each product and, in order to manage risksproperly, formulates its policy on investments and resource allocation based on the balance of the sub-groups. Moreover, theCompany periodically checks that the duration gap between policy-reserve-matching bonds and policy reserves stays within acertain range. The sub-groups are: (a) Individual insurance and annuities (JP yen-denominated) (b) Individual insurance and annuities (US dollar-denominated) with the exception of certain types and policies.(Additional information)Effective from for the fiscal year ended March 31, 2022,the sub-group of individual insurance and annuities (NZ dollar-denominated) has been abolished, and the policy-reserve-matching bonds formerly held in said sub-group have been reclassified tosecurities available for sale.This is due to the fact that the recording of interest rate risk management utilizing asset-liability matching in financial statementshas declined in importance, as the outstanding balance of policy reserves related to said sub-group has decreased and the durationhas been shortened.The impact of this change on the interim financial statements is immaterial.3 Derivative transactions (including those attributable to money held in trust ) are reported at fair value.4 Depreciation of tangible fixed assets is as follows:(a) Tangible fixed assets (excluding leased assets)Annual amount of depreciation estimated by declining balance method (straight-line method being applied to buildings, with theexception of those buildings and accompanying facilities acquired prior to March 31, 2016), is reported pro rata in accordance withthe life. Declining balance method is applied. However, o ther tangible fixed assets that were acquired for 100,000 yen or more butless than 200,000 yen are depreciated in an equal installment over three years.(b) Leased assetsDepreciation of leased assets with regard to finance leases whose ownership does not transfer to the lessees is computed under thestraight-line method assuming zero residual value and with the lease period being deemed as useful life.5 Amortization of intangible fixed assets is calculated by the straight-line method. Amortization of software for internal use is basedon the estimated useful life.6 Foreign currency-denominated assets and liabilities are translated into the yen at market exchange rates as of the book closing date.Changes in market values of bonds included in foreign currency-denominated other securities are divided into two, and the portionattributable to changes in the securities’ nominal market prices in their local currencies is included in “valuation difference” onother securities, and the rest in “foreign exchange gains/losses. ”7 Reserve for possible loan losses is calculated by multiplying the value of loan claims by the historical loan loss rates calculatedfrom actual losses, pursuant rules on the self-assessment of assets as well as rules on the write-offs on and provisioning of reservesfor assets. Relevant departments assess all loan claims based on the self-assessment rules, and an independent departmentresponsible for auditing assets audits the assessment results. Provisions to the reserve for possible loan losses are determined based8 Reserve for price fluctuations is calculated pursuant to Article 115 of the Insurance Business Act.- 11 -The Dai-ichi Frontier Life Insurance Co.,Ltd.9 National and local consumption taxes are recorded with the tax-exclusion method. Non-recoverable consumption tax on certainassets is capitalized as a prepaid expense and amortized equally over five years in accord with corporate taxation law, and suchtaxes other than deferred consumption tax are recognized as an expense in the year in which they are incurred.10 Policy reserves have been calculated and set aside for those insurance policies for which contractual obligations have commencedas of the end of the fiscal year, so as to prepare for the future performance of obligations under those insurance policies, inaccordance with the formula specified in the statement of calculation procedures (as set forth in Article 4, Paragraph 2, Item (iv) ofthe Insurance Business Act) and pursuant to Article 116, Paragraph 1 of the Insurance Business Act.Insurance premium reserves included in the policy reserves are calculated using the following formula:(a) For policies subject to the Standard Policy Reserve Method: Method stipulated by the Financial Services Agency Commissioner(Ministry of Finance Notification No. 48, 1996)(b) For policies not subject to the Standard Policy Reserve Method: Net level premium reserve methodContingency reserves included in the policy reserves have been set aside pursuant to Article 69, Paragraph 1, Item (iii) of theOrdinance for Enforcement of the Insurance Business Act, for covering risks which may accrue in the future, so as to secureperformance of future obligations under insurance contracts.11 “Accounting Standard for Fair Value Measurement, etc.” (ASBJ Statement No. 30, July 4, 2019, hereinafter “Accounting Standardfor Fair Value Measurement”) has been adopted, effective from the beginning of the fiscal year ended March 31, 2022. Pursuant tothe transitional treatment stipulated in paragraph 19 of the Accounting Standard for Fair Value Measurement and paragraph 44-2 ofthe “Accounting Standard for Financial Instruments” (ASBJ Statement No.10, revised on July 4, 2019), new accounting policiesestablished by the Accounting Standard for Fair Value Measurement shall be implemented prospectively. Note that this has noimpact on the financial statements.12 From the following fiscal year, the Company will transition to a group tax sharing system with Dai-ichi Life Holdings, Inc. as theparent company. As a result, from the end of the fiscal year under review, the Company’s accounting and disclosure relating to taxeffect accounting for corporation tax and local corporation tax has been predicated on the transition to a group tax sharing systembased on “Practical Solution on the Accounting and Disclosure Under the Group Tax Sharing System” (Practical Solution No.42,August 12, 2021).13 In view of the liability characteristics of life insurance policies, assets in the general account (i.e., not in separate accounts asdefined by Article 118, paragraph 1, of the Insurance Business Act) are invested primarily in fixed-income assets (government andcorporate bonds) in accordance with asset-liability management (ALM) principles with the primary objective of steadily payingannuities, insurance proceeds, and benefits over the long term. To mitigate the guaranteed minimum benefit risk on individualvariable annuities and for the purpose of hedging against the foreign exchange risk on the bond holdings, the Company engages inderivative transactions (foreign exchange forward contracts, currency futures contracts, stock-index futures contracts, securitiesfutures contract, etc. ). The Company’s holdings of financial instruments, mainly securities and derivatives, are subject to marketMarket Risk Management: Under its internal investment policy and market risk management rules, the Company manages marketrisk by making medium- to long-term investments in a manner appropriate to its liabilities, constantly confirming the consistency ofits portfolio positions and investment policies and measuring VaR (value-at-Risk) .Credit Risk Management: Under its internal investment policy and credit risk management rules, the Company manages credit riskby establishing credit limits designed to avoid excessive concentration of risk toward a specific company or group. Each individualtransaction is screened before credit is extended and follow-up checks are conducted regularly. In addition, the Company measuresVaR as part of its effort to better grasp and analyze credit risk exposure.Derivative transactions used by the Company to mitigate the guaranteed minimum benefit risk on individual variable annuities areconducted in accordance with the Company’s policy and internal rules on managing guaranteed minimum benefit risk. In additionto verifying the effectiveness of hedge positions and managing gains and losses generated by derivative transactions on a dailybasis, the Company regularly monitors reductions in guaranteed minimum benefit risk and gauges its VaR .The risk management department reports regularly to the Board of Directors on the status of the Company’s entire risk position.- 12 -The Dai-ichi Frontier Life Insurance Co.,Ltd.Amounts of financial instruments recorded on the balance sheet, their fair values, and differences between the two are as follows:(✼1) Since cash and deposits are cash or are settled in a short period of time, their book values approximate their fair values, and notes are accordingly omitted.(✼2) Net derivative assets and liabilities arising from derivative transactions are reported as a net value. A negative　　　 total indicates a net liability.14 Details of the fair values of financial instruments are described by level below.The fair value of financial instruments is classified into the following three levels in accordance with the observability andmateriality of inputs used in calculations:Level 1 fair value: Fair value calculated using those quoted prices of the measured assets or liabilities that are formed in active markets from among observable valuation inputs.Level 2 fair value: Fair value calculated using inputs other than inputs included within Level 1 from among observable valuation inputs.Level 3 fair value: Fair values calculated using important unobservable valuation inputs.Where there are multiple inputs that have a material impact on the calculation of fair value, the Company classifies fair value inaccordance with the level that is lowest in the order of priority in the calculation of fair value selecting from among the respectivelevels of each of the inputs involved.(1) Financial instruments reported at fair value in the balance sheet for the fiscal year ended March 31, 2022.- 13 -The Dai-ichi Frontier Life Insurance Co.,Ltd.(millions of yen)Carrying amount onbalance sheetFair valueDifference16,00616,006-1,074,7561,074,756-7,311,4467,329,01517,568916,546916,546- 3,593,2873,610,85617,5682,801,6112,801,611- 8,402,2098,419,77817,56857,84657,846- 57,84657,846- (a) Trading securities(1) Monetary claims bought (2) Money held in trust(3) Securities (b) Policy-reserve-matching bonds (c) Other securitiesAssets totalDerivative transactions　*2 (a) Derivative transactions to which hedge accounting is not appliedDerivative transactions total*The investment funds to which transitional treatment has been applied in accordance with paragraph 26 of “ImplementationGuidance on Accounting Standard for Fair Value Measurement,” (ASBJ Guidance No. 3, July 4, 2019), are not reported as such inthe abovementioned balance sheet. The amount of the said investment funds, in the balance sheet for the first half, stands at1,088,768 million yen and is recorded under securities.(2) Financial instruments other than those reported at fair value in the balance sheet for the fiscal year ended March 31, 2022.Note 1. Explanation of methodologies and inputs employed in fair value calculationAssetMonetary claims boughtThe fair value of monetary claims bought are determined using the prices obtained from financial institutions. The inputs used forthose prices thus obtained include material non-observable inputs and therefore monetary claims bought are classified as Level 3.Money held in trustFor money held in trust, fair value is classified as Level 1 in cases where unadjusted quoted prices in active markets can be used.This includes Japanese Government bonds. If the market is not active, fair value is classified as Level 2, irrespective of whetherpublicly disclosed quoted prices are used.For money held in trust where fair value is not based on quoted market prices, fair value is measured based on prices obtained fromexternal brokers and financial institutions, and is classified as Level 2.- 14 -The Dai-ichi Frontier Life Insurance Co.,Ltd.(millions of yen)Level 1Level 2Level 3Monetary claims bought–16,00616,006Money held in trust901,265173,491-1,074,756Securities*Other securities424,1702,200,0285,1902,629,389　Government bonds108,311–108,311　Local government bonds-13,594-13,594 Corporate bonds-353,979-353,979Foreign public and corporatebonds315,8581,832,4545,1902,153,503Derivative transactionsCurrency-related-89,573-89,573Others-239-239Assets total1,325,4352,463,33321,1973,809,965Derivative transactionsCurrency-related-29,893-29,893Interest-rate-related-836-836Stock-related1,237–1,237Total liabilities1,23730,729-31,966Fair valueTotal(millions of yen)Level 1Level 2Level 3Securities Policy-reserve-matching bonds487,8773,122,978-3,610,856　Government bonds443,786–443,786 Local government bonds-32,711-32,711 Corporate bonds-750,556-750,556 Foreign public and corporate bonds44,0912,339,710-2,383,802Assets total487,8773,122,978-3,610,856Fair valueTotalSecuritiesFor securities, fair value is classified as Level 1 in cases where unadjusted quoted prices in active markets can be used. Thisincludes Japanese Government Bonds. If the market is not active then fair value is classified as Level 2, regardless of whetherpublicly disclosed quoted prices are used.For bonds where fair value is not based on quoted market prices, fair value is measured based mainly on prices obtained fromexternal brokers and financial institutions, and is classified as Level 2. For these prices, present values are calculated by discountingtheir future cash flows at a risk-free rate adjusted to their credit spreads. When measuring, fair value is classified as Level 2 in caseswhere observable inputs are used, and classified as Level 3 where material non-observable inputs are used.For investment funds, fair value is determined based on prices obtained from financial institutions. They are not classified intolevels due to application of the transitional measures provided for in item 26 of “Implementation Guidance on Accounting Standardfor Fair Value Measurement” (ASBJ Guidance, July 4, 2019).Derivative transactionsFor exchange-traded derivative transactions, fair value is classified as Level 1 in cases where unadjusted quoted prices in activemarkets can be used. This includes stock-related derivative transactions.For OTC (over-the-counter) derivatives, fair value is determined using amounts discounted to present value obtained from externalbrokers and financial institutions as well as prices calculated using evaluation techniques such as the discounted cash flow methodin accordance with the type of transaction and the maturity period. Since inputs used for evaluation techniques for calculating OTCderivative prices are mainly interest rates, exchange rates, and the like, and material non-observable inputs are not used or theirimpacts are not material, OTC derivatives are classified as Level 2.Note 2. Information on the financial instruments classified as Level 3, from among those reported at fair value in the balance sheetfor the fiscal year ended March 31, 2022.(1) Table on the adjustment from the outstanding balance as of the beginning of the fiscal year to the balance as of fiscal year end(March 31, 2022), and valuation gains or losses recognized in the current fiscal year.*Included in “Investment income” and “Investment expenses” of the Statement of Earnings for the fiscal year ended March 31,2022.(2)Explanation of fair value valuation processThe Company determines the policies and processes for fair value calculations and fair value level classifications at its businessunit in charge of the preparing financial statements. In accordance with the said policies and processes, the Company’s operationaland administrative divisions select the fair value valuation model and thereby calculate fair values and classify them into therelevant levels. When the Company obtains a market quoted price from a third party, and uses this as a fair value, the Companyverifies the appropriateness of the valuation methodology and inputs employed, through appropriate means involving comparativeanalyses of the fair values of similar financial products.15 Accumulated depreciation on tangible fixed assets is 634 million yen.16 Securities lent under lending agreements are included in the non-consolidated balance sheet. Total balance of securities lent as ofMarch 31, 2022 was 529,132 million yen.17 Assets in separate accounts, as defined by Article 118 of the Insurance Business Act, total 925,740 million yen. Liabilities inseparate accounts total the same amount.- 15 -The Dai-ichi Frontier Life Insurance Co.,Ltd.(millions of yen)Monetary claims bought–(101)16,10716,006SecuritiesOther securities-611(316)4,8965,190 Foreign public and corporate bonds-611(316)4,8965,190Balance at thebeginning of theyearProfit (losses) or net unrealized gains on securities, net of tax(Net) changes for theyear due to purchases,sales, issuance, andsettlementBalance as ofMarch 31, 2022Recorded underprofit (losses) *Recorded under net unrealizedgains (losses) on securities, net of tax18 The total amounts of receivables from and payables to subsidiaries and affiliated companies were 24 million yen.19 Deferred tax assets totaled 52,257 million yen, while deferred tax liabilities totaled 196 million yen. Of deferred tax assets, 9,380million yen was deducted as the amount of valuation reserves.The deferred tax assets were primarily due to policy reserves and others of 32,282 million yen and reserve for price fluctuationsandof 10,330 million yen and unused tax loss carryforward of 5,293 million yen.Of the reversal of valuation reserves against deferred tax assets, the valuation reserves against unused tax loss carryforward were5,293 million yen, and the valuation reserves related to the total of deductible temporary differences, etc. were 4,087 million yen.The main reason for the change in the amount deducted from deferred tax assets as valuation reserves is that judgments on therecoverability of deferred tax assets are now predicated on the transition to a group tax sharing system.Unused tax loss carryforward and the related deferred tax asset amounts by carryforward expiration date are as follows:20 The effective statutory tax rate for the fiscal year ended March 31, 2022, was 28.00%, and the Company’s corporate income taxburden (corporate income tax as a percentage of pretax income) was (18.39)%. The difference was due mainly to the impact of avaluation allowance (46.41)%.21 The value of assets (marketable securities) pledged as collateral is 251,635 million yen.The amounts of secured liabilities were239,933 million yen.22 Assets for which rights held can be freely disposed of by means of sale or collateralization are available-for-sale securities that havebeen accepted as collateral of reinsurance dealingsand　and derivative transactions, and in this period ownership was maintainedfor total market value of 136,731 million yen as of March 31, 2022, and we have no assets pledged as a re-collateral.23 Reserves for outstanding claims attributable to the portion of reinsurance specified in Article 71, paragraph 1, of the Ordinance forEnforcement of the Insurance Business Act, applied under Article 73, paragraph 3 of said Ordinance (“reserves for outstandingceding insurance claims”), amount to 241 million yen. Policy reserves attributable to the portion of reinsurance specified in Article71, paragraph 1 of said Ordinance (“ceding reinsurance policy reserves”) amount to 861,736 million yen.24 As of fiscal year end (March 31, 2022) , the Company estimated that it would be required to contribute 13,459 million yen to theLife Insurance Policyholders Protection Corporation of Japan pursuant to Article 259 of the Insurance Business Act. Contributionsare expensed as an operating expense in the fiscal year in which they are incurred.25 Net assets per share is 143,811,136.71 yen.26 As of fiscal year end (March 31, 2022) , undepreciated balance of the fee of the reinsurance contract, as stipulated in the Ministryof Finance Notification No. 50, 1996, Article 1, Paragraph 5, is 23,239 million yen.- 16 -The Dai-ichi Frontier Life Insurance Co.,Ltd.(millions of yen)1 year or lessOver 1 year to 5years or lessOver 5 yearsTotal–5,2935,293Valuation reserves–(5,293)(5,293)Deferred tax assets—-Unused tax losscarryforward (*)(✼) The unused tax loss carryforward amount is obtained by multiplying by the statutory effective tax rate.5. Unaudited Statement of EarningsORDINARY REVENUESPremium and other incomePremium incomeReinsurance IncomeInvestment RevenueInterest and dividendsInterest from bank depositsInterest and dividends from securitiesOther interest and dividendsGains on money held in trustGains on sale of securitiesGains on redemption of securitiesDerivative transaction gainsForeign exchange gainsOther investment revenueGains on investment in separate accountsOther ordinary revenuesOther ordinary revenuesORDINARY EXPENSESBenefits and claimsClaimsAnnuitiesBenefitsSurrender valuesOther refundsCeding reinsurance commissionsProvision for policy reserves and otherProvision for reserves for outstanding claimsProvision for policy reservesInvestment expensesInterest expensesLosses on money held in trustLosses on sale of securitiesLosses on redemption of securitiesDerivative transaction lossesProvision for reserves for possible loan lossesOther investment expensesOperating expensesOther ordinary expensesNational and local taxesDepreciationOther ordinary expensesORDINARY GAIN EXTRAORDINARY GAINESGains on disposal of fixed assetsEXTRAORDINARY LOSSESLosses on disposal of fixed assetsProvision for reserves for price fluctuationsProfit before income taxesCorporate income taxes – currentCorporate income taxes-deferredTotal of corporate income taxesNet profit for the yearYear endedMarch 31, 2021Amount(millions of yen)Year endedMarch 31, 2022Amount2,217,1131,167,555726,691440,8631,049,517180,16934179,75637823,33094,835292122,761478,2958149,82341412,102,3201,614,276111,876236,840113,421644,2784,137503,721433,4133,862429,5511,98441,220138–361743,9038,7415,6793,0601114,793005,668115,657109,12522,732-22,73286,3922,214,6251,503,0711,024,466478,604711,518173,11229172,61247036,9721,022–465,724334,68336362,091,4981,695,389136,513172,692138,400757,5314,386485,863310,461769309,69221,695132,36512,82705,822166351,88612,0667,5403,861664123,126–5,968685,900117,15818,035(39,575)(21,539)138,698- 17 -The Dai-ichi Frontier Life Insurance Co., Ltd.Notes to the Unaudited Statement of Earnings for the fiscal year ended March 31, 2022 1 The accounting standards for reporting premium and other income, and for benefits and claims, are as follows:a) Premium and Other Income (Excluding Reinsurance Income)Premium and other income (excluding reinsurance income) that has been received and for which contractualobligations have commenced, are recorded in accordance with the amounts received.Of the premium and other income (excluding reinsurance income) received, however, the portion corresponding to theunexpired period as of the end of the fiscal year, has been transferred to policy reserves, pursuant to Article 69,Paragraph 1, Item (ii) of the Ordinance for Enforcement of the Insurance Business Act.b) Reinsurance IncomeOf the amount paid as insurance benefits and claims related to the primary insurance contract, the amount reinsured is,pursuant to the reinsurance agreement, recorded as reinsurance income at the time of payment of said insurancebenefits and claims.In some modified coinsurance transactions involving no cash transfer, pursuant to the reinsurance agreement, theamount to be received as a portion of the amount equivalent to new contract expenses of the primary insurancecontract, is recorded as reinsurance income. In addition, the same amount is recorded under reinsurance receivables asthe undepreciated balance of the fee of the reinsurance contract, and is to be amortized over the period of thereinsurance contract.c) Benefits and Claims (Excluding Ceding Reinsurance Commissions)Benefits and claims (excluding ceding reinsurance commissions), the amount of which is calculated and paid inaccordance with the insurance contract, are recorded in cases when reasons for payment provided for in insurancecontracts have arisen.Pursuant to Article 117 of the Insurance Business Act, the Company has set aside, as reserves for outstanding claims,insurance proceeds that are due and payable as of the end of the fiscal year but payment is yet to have been made, andinsurance proceeds in cases where reasons for payment are deemed to have arisen but reports concerning the reasonsfor payment are yet to be received.d) Ceding Reinsurance CommissionsCeding reinsurance commissions are recorded, upon receipt of the insurance premium related to the primary insurancecontract as agreed upon pursuant to the reinsurance agreement or at the time of the conclusion of the reinsuranceagreement concerned.Note that pursuant to Article 71, Paragraph 1 and Article 73, Paragraph 3 of the Ordinance for Enforcement of the 2 The total amounts of expenses from transactions with affiliated companies were 481 million yen, respectively. 3 Gains on sale of securities included gains on sales of domestic bonds and foreign securities of 3,369 million yen and33,603 million yen, respectively.11,329 million yen, respectively.4 Losses on sale of securities included losses on sales of domestic bonds and foreign securities of 1,498 million yen and5 In calculating the provision for reserves for outstanding claims, a provision for reserves for outstanding cedinginsurance claims of 71 million was subtracted. In calculating the provision for policy reserves, a provision forceding reinsurance policy reserves of 28,764 million was subtracted.6 Losses on money held in trust included a valuation loss of 2,365 million yen.7 Derivative transaction losses included a valuation loss of 807 million yen.8 Net income per share for the fiscal year ended March 31, 2022 was 74,972,106.69 yen.9 Reinsurance income includes 4,731 million yen increase in the undepreciated balance of the fee of reinsurancecontract , as stipulated in the Ministry of Finance Notification No. 50, 1996, Article 1, Paragraph 5 .10 Ceding reinsurance commissions includes 44,158 million yen decrease in the undepreciated balance of the fee ofreinsurance contract , as stipulated in the Ministry of Finance Notification No. 50, 1996, Article 1, Paragraph 5 .- 18 -The Dai-ichi Frontier Life Insurance Co.,Ltd.6. Breakdown of Ordinary Profit (Fundamental Profit)(millions of yen)Year endedMarch 31, 2021Year endedMarch 31, 2022AFundamental profitCapital gainsGains on money held in trustGains on investment in trading securitiesGains on sale of securitiesDerivative transaction gainsForeign exchange gainsOthersCapital lossesLosses on money held in trustLosses on investment in trading securitiesLosses on sale of securitiesLosses on valuation of securitiesDerivative transaction lossesForeign exchange lossesOthersNet capital gains (losses)Fundamental profit plus net capital gains (losses)BA + BOther one-time gainsReinsurance incomeReversal of contingency reserveReversal of specific reserve for possible loan lossesOthersOther one-time lossesCeding reinsurance commissionsProvision for contingency reserveProvision for specific reserve for possible loan lossesProvision for specific reserve for loans to refinancing countriesWrite-down of loansOthersOther one-time profits (losses)Ordinary profitCA + B + C58,501783,91523,33094,835122,761478,29564,692660,5951,220659,374123,320181,822190,348190,348257,37748,0804209,292(67,028)114,793————43,952661,89936,972465,724159,202551,0252,36512,8275,822530,009110,874154,8276631,7062,824————-28,882(31,700)123,126- 19 -The Dai-ichi Frontier Life Insurance Co., Ltd.(Reference)Fundamental Income Breakdown of Other Fundamental Income(millions of yen)Year endedMarch 31, 2021Year endedMarch 31, 2022Impact from increase or decrease in surrender values in accordance withMarket Value Adjustment (MVA)Impact from market rate fluctuations of foreign exchange on foreign-currency denominated insurance policiesInterest received and/or paid related to currency swap and interest rateswap contracts covering foreign-currency denominated insurance policiesImpact from assets held in money trusts and others related to reinsurancedealingsPolicy reserves attributable to the portion of reinsurance specified inArticle 71, paragraph 1 of the Ordinance for Enforcement of theInsurance Business ActCeding reinsurance commissions for the reinsurance specified in Article71, paragraph 1 of the Ordinance for Enforcement of the InsuranceBusiness ActAmount of ceding reinsurance commissions related to in-force/surrendered surplus relief reinsuranceOther Capital GainsImpact from increase or decrease in surrender values in accordance withMarket Value Adjustment (MVA)Impact from assets held in money trusts and others related to reinsurancedealingsOther Capital LossesImpact from market rate fluctuations of foreign exchange on foreign-currency denominated insurance policiesInterest received and/or paid related to currency swap and interest rateswap contracts covering foreign-currency denominated insurance policiesOther One-Time GainsPolicy reserves attributable to the portion of reinsurance specified inArticle 71, paragraph 1 of the Ordinance for Enforcement of theInsurance Business ActOther One-Time GainsCeding reinsurance commissions for the reinsurance specified in Article71, paragraph 1 of the Ordinance for Enforcement of the InsuranceBusiness Act613,624(63,516)645,35314,021(1,175)(190,348)209,292-64,69263,5161,175659,374645,35314,021190,348190,348209,292209,292399,688(147,729)515,37114,638(11,473)—–28,882159,202147,72911,473530,009515,37114,63828,882Amount of ceding reinsurance commissions related to in-force/surrendered surplus relief reinsurance-28,882- 20 -The Dai-ichi Frontier Life Insurance Co., Ltd.7. Unaudited Statement of Changes in Net AssetsYear ended March 31, 2022Balance at the beginning of the yearChanges for the yearNet gainNet changes of items other than shareholders’ equityTotal changes for the yearBalance at the end of the yearBalance at the beginning of the yearChanges for the yearNet gainNet changes of items other than shareholders’ equityTotal changes for the yearBalance at the end of the yearYear ended March 31, 2021(millions of yen)Shareholders’ equityCapital surplusCapital stockLegal capital surplusRetained earningsOther retained earningsRetained earningsbrought forwardTotal shareholders’equity117,50067,500(48,613)136,386138,698138,698-117,500-67,500138,69890,084138,698275,084Valuation and translation adjustmentsNet unrealized gainson securities,net of taxTotal valuation andtranslationadjustmentsTotal net assets145,772145,772282,158(154,806)(154,806)(9,033)(154,806)(154,806)(9,033)138,698(154,806)(16,108)266,050(millions of yen)Shareholders’ equityCapital surplusCapital stockLegal capital surplusRetained earningsOther retained earningsRetained earningsbrought forwardTotal shareholders’equity117,50067,500(135,006)49,99386,39286,392136,386Balance at the beginning of the yearChanges for the yearNet gainNet changes of items other than shareholders’ equityTotal changes for the yearBalance at the end of the year-117,500-67,500Valuation and translation adjustmentsNet unrealized gainson securities,net of taxTotal valuation andtranslationadjustmentsTotal net assets202,994202,994252,98786,39286,392(48,613)86,392(57,221)29,171282,158Balance at the beginning of the yearChanges for the yearNet gainNet changes of items other than shareholders’ equityTotal changes for the yearBalance at the end of the year(57,221)(57,221)145,772(57,221)(57,221)145,772 Notes to Non-Consolidated Statement of Changes in Net assets for the fiscal year ended March 31, 20221. Number of outstanding shares by classOutstanding shares　 Common stock No. shares as ofApril 1, 2021Increase in number ofsharesDecrease in numberof shares No. shares as ofMarch 31, 2022(shares)1,850–1,850- 21 -The Dai-ichi Frontier Life Insurance Co., Ltd8. Status of loans pursuant to the Insurance Business ActClaims against bankrupt and quasi-bankrupt obligorsClaims with collection riskThree-month delinquent loansRestructured loansSubtotal[Percentage]TotalNotes:Claims against normal obligors(millions of yen except percentages) As of March 31, 2021As of March 31, 2022—–[ – ]397,999397,999—–[ – ]529,225529,2251. Claims against bankrupt and quasi-bankrupt obligors are loans to borrowers who are subject to bankruptcy, corporate reorganization or rehabilitation or other similar proceedings and other borrowers in serious financial difficulties.2. Claims with collection risk are loans to obligors (other than bankrupt and quasi-bankrupt obligors)with deteriorated financial condition and results of operations from which it is unlikely that theprincipal and interest on the loans will be recovered (excluding the loans mentioned in note 1).3. Three-month delinquent loans are those loans for which either repayments of the principal or interest payments have not been made for more than three months since the day after the agreed payment date (this excludes the loans mentioned in notes 1 and 2).4. Restructured loans are those loans for which the terms and conditions have been modified in a way that is favorable to the borrower (including interest reductions or exemptions, grace periods for interest payments, grace periods for principal repayments, or the waiving of loan repayments), with the aim of supporting the borrower or facilitating their rehabilitation (this excludes the loans mentioned in notes 1, 2, and 3) 5. Normal loans are loans made to borrowers who have no particular issues with their financial (cid:10)position and business performance, and include all loans other than those mentioned in notes 1, 2, 3, and 4. – 22 -The Dai-ichi Frontier Life Insurance Co., Ltd.9. Solvency Margin RatioAs of March 31, 2021As of March 31, 2022(millions of yen)Total solvency margin (A)Common stock, etc.Reserve for price fluctuationsContingency reserveGeneral reserve for possible loan losses(Net unrealized gains (losses) on securities (before tax) and deferred hedge gains (losses) (before tax)) × 90% *Net unrealized gains (losses) on real estate × 85% *Policy reserves in excess of surrender valuesQualifying subordinated debtExcluded portion of policy reserves in excess of surrender valuesand qualifying subordinated debtExcluded itemsOtherTotal RiskInsurance risk3rd sector insurance riskAssumed investment yield riskGuaranteed minimum benefit riskInvestment riskBusiness riskSolvency margin ratio（A)(1/2) × (B) × 100*: Multiplied by 100% if losses.(B)R1R8R2R7R3R4109,819118,601570,750136,38630,994111,3267182,216——200,61413551,0272,794140,9465,847508,974235,08436,894114,15115(12,139)—-16,366196,970220-44,1802,812146,1113,866569.0%516.8%1. B2.Notes:The above figures are calculated based on Articles 86 and 87 of the Enforcement Regulations of Insurance Business Act, andAnnouncement No.50, Ministry of Finance, 1996.Common stock, etc. excludes the expected disbursements from capital outside the Company and valuation and translationadjustments.3. Guaranteed minimum benefit risk is calculated by the standard method.- 23 -The Dai-ichi Frontier Life Insurance Co., Ltd.42732281RRRRRR＋）＋＋＋（）（10. Status of Separate Account for the Fiscal Year ended March 31, 2022(1) Separate Account Assets by ProductAs of March 31, 2021AmountAs of March 31, 2022Amount(millions of yen)29,920895,819- 925,740Individual variable insuranceIndividual variable annuitiesGroup annuitiesSeparate account total39,537998,676- 1,038,213(2) Individual Variable Insurance (Separate Account)A. Policies in forceVariable insurance (defined term type)Variable insurance (whole life type)TotalNote: The outstanding policies in force for individual variable insurance include those managed in general account.- 4444- 3737As of March 31, 2021As of March 31, 2022Number of policies(thousands)Number of policies(thousands)Amount(millions of yen)- 385,040385,040Amount(millions of yen)- 339,673339,673B. Breakdown of separate account assets for individual variable insuranceAs of March 31, 2021%Amount(millions of yen except percentages)As of March 31, 2022%AmountCash, deposits, and call loansSecuritiesDomestic bondsDomestic stocksForeign securitiesForeign bondsForeign stocks and other securitiesOther securitiesLoansOthersReserve for possible loan lossesTotal31039,213- – – – – 39,213- 13- 39,53715229,710- – – – – 29,710- 57- 29,920C. Investment gains and losses on separate accounts for individual variable insuranceAs of March 31, 2021AmountAs of March 31, 2022Amount(millions of yen)0.899.2- – – – – 99.2- 0.0- 100.07,362- – 15,386- – – – – – – – 5922,6900.599.3- – – – – 99.3- 0.2- 100.07,326- – – – – – – – 1,031- – 06,295Interest and dividendsGains on sale of securitiesGains on redemption of securitiesGains on valuation of securitiesForeign exchange gainsDerivative transaction gainsOther investment incomeLosses on sale of securitiesLosses on redemption of securitiesLosses on valuation of securitiesForeign exchange lossesDerivative transaction lossesOther investment lossesNet investment income- 24 -The Dai-ichi Frontier Life Insurance Co., Ltd.(3) Individual Variable Annuities (Separate Account)A. Policies in forceAs of March 31, 2021As of March 31, 2022Number of policies(thousands)Amount(millions of yen)2,639,398Number of policies(thousands)Amount(millions of yen)2,349,412418471Individual variable annuitiesNotes:1.Total policy amount in force for individual annuities is equal to the sum of (a) the amount required to fund annuity paymentswhen they commence for annuities that have not yet commenced paying out and (b) policy reserves for annuities that havecommenced paying out.2. The outstanding policies in force for individual variable annuities include those managed in general account.B. Breakdown of separate account assets for individual variable annuitiesAs of March 31, 2021%Amount(millions of yen except percentages)As of March 31, 2022%AmountCash, deposits, and call loansSecuritiesDomestic bondsDomestic stocksForeign securitiesForeign bondsForeign stocks and other securitiesOther securitiesLoansOthersReserve for possible loan lossesTotal3,976993,611- – 11,982- 11,982981,628- 1,087- 998,676278886,836- – 11,171- 11,171875,664- 8,704- 895,819C. Investment gains and losses on separate accounts for individual variable annuitiesAs of March 31, 2021AmountAs of March 31, 2022Amount(millions of yen)0.499.5- – 1.2- 1.298.3- 0.1- 100.056,208- – 71,914- – – – – – – – 989127,1330.099.0- – 1.2- 1.297.8- 1.0- 100.039,955- – – – – – – – 11,249- – 31828,387Interest and dividendsGainｓ on sale of securitiesGains on redemption of securitiesGains on valuation of securitiesForeign exchange gainsDerivative transaction gainsOther investment incomeLosses on sale of securitiesLosses on redemption of securitiesLosses on valuation of securitiesForeign exchange lossesDerivative transaction lossesOther investment lossesNet investment income11. Consolidated Financial SummaryNot applicable.- 25 -The Dai-ichi Frontier Life Insurance Co., Ltd.