Future Growth

In fiscal 2015, the final fiscal year of the current two-year Medium-term Management Plan, T&D Financial Life will further promote multi-line development of products, sales channels, and sources of profit by expanding its agency network and driving product penetration. This will be done by strengthening its sales promotion system and enhancing its product lineup. In this way, T&D Financial Life seeks to enhance its business model to ensure that it can generate stable profits.

In terms of product strategies, T&D Financial Life will continue to conduct marketing activities needed to incorporate market needs centered on the views of customers and insurance agents. Based on these activities, T&D Financial Life will upgrade the product lineup in an effort to increase the new policy amount. This will entail continuously developing and launching a single premium savings-type product that differentiate in benefits, etc., and a level premium protection-type product based on customer segments, according to the characteristics of sales channels.

In terms of sales strategy, T&D Financial Life will drive product penetration in the market by increasing the number of agents such as financial institutions and insurance shops, and enhancing the sales support system. Efforts will also be made to raise sales efficiency by encouraging agents to introduce multiple T&D Financial Life products.

Making T&D Financial Life Even More Competitive

To prevail in the fiercely competitive independent insurance agent business, T&D Financial Life has been working to raise efficiency through boosting administrative efficiency and reducing IT and personnel costs, etc. Meanwhile, it has also been bolstering its business structure in response to recent increases in sales and the number of agents. Looking ahead, the company will continue to take steps to increase efficiency and strive to strengthen its business structure as necessary to enhance its presence in the market, with the aim of honing its competitiveness.

Comprehensive Maintenance Costs^*

• * Comprehensive maintenance costs = Maintenance costs (less holding company fees, commissions and contributions to the Life Insurance Policyholders Protection Corporation, and retirement benefits for directors, audit & supervisory board members and employees) + Retirement benefit expenses + Stock-based compensation costs + Expenses for premium collection + Provision for increase in reserve for bonuses + Depreciation cost