Financial Soundness
The solvency margin ratios in fiscal 2014 were 993.9% at Taiyo Life, 1,363.7% at Daido Life, and 1,271.9% at T&D Financial Life. The three life insurance companies have thus has sufficient financial soundness.
In order to further reinforce financial soundness in preparation for further strengthening of regulations that are expected going forward, we will continue to accumulate internal reserves. Forecasts for fiscal 2015 include an additional provision for reserve for price fluctuations of ¥15.0 billion planned by Taiyo Life.
Returns to Shareholders
In deciding the payout ratio, T&D Holdings, Inc. first takes into consideration maintaining sufficient equity capital to ensure the financial soundness of its three life insurance companies. Over the mediumand long-term, the Company aims to stably return profits to shareholders based on a total return to shareholders ratio of approximately 30% of adjusted net income, which is net income plus additional internal reserves in excess of legal requirements related to reserves for contingency and price fluctuations, after taxes.
In fiscal 2014, the Company provided a total return to shareholders of ¥46.6 billion, comprising a cash dividend of ¥25 per share and a share buyback involving the repurchase of 9.2 million shares at a total cost of approximately ¥30.0 billion.
The Company also plans to pay a dividend of ¥25 per share for fiscal 2015.
Solvency Margin Ratio
Return to Shareholders and Adjusted Net Income
| 13/3 | 14/3 | 15/3 | |
| Total return to shareholders (¥ billions) | approx. 18.1 | approx. 26.8 | approx. 46.6 |
| Total dividends (¥ billions) | 15.1 | 16.8 | 16.6 |
| Dividends per share (¥) | <¥22.50> | <¥25.00> | <¥25.00> |
| Share buybacks (¥ billions) | approx. 3*1 | approx. 10*2 | approx. 30*3 |
| Adjusted net income (¥ billions) | 78.0 | 92.4 | 94.2 |
| Net income (¥ billions) | 63.7 | 78.9 | 94.2 |
| Excess amount of reserve for contingency and price fluctuations, after taxes (¥ billions) | 14.3 | 13.5 | - |
- *1 The Company conducted a share buyback in May 2013 as a shareholders' return for the FY2012 earnings.
- *2 The Company conducted a share buyback from May to June 2014 as a shareholders' return for the FY2013 earnings.
- *3 The Company conducted a share buyback from May to July 2015 as a shareholders' return for the FY2014 earnings.
