Investment

Under the T&D Life Group investment policy, the Group ensured stable income by investing mainly in yen-denominated income assets, while also working to increase investment income by investing flexibly according to market movements within each life insurance company's risk tolerance.

Group Investment Policy

Under the principle of securing assumed interest yield and giving careful consideration to attribution of liability and risk tolerance, the Group investment policy is to increase investment returns stably in compliance with the risk taking policy set as the Group's common policy. To ensure stable income, we invest mainly in yen-denominated income assets, while also investing in risk assets such as domestic and foreign bonds, taking into consideration the risk and returns within each life insurance company's risk tolerance.

Net Exposure to Domestic Stocks and Foreign Currency

As of March 31, 2015, net exposure of general account assets to domestic stocks after taking into account equity hedging was 6.6% for Taiyo Life and 5.7% for Daido Life. Foreign currency exposure after taking into account currency hedging was 8.4% for Taiyo Life and 4.6% for Daido Life.

Gains (Losses) on Sales of Securities and Devaluation Losses on Securities

The Group recorded net gains on sales of securities and devaluation losses on securities of ¥26.3 billion, an increase of ¥18.8 billion year on year.

Net Unrealized Gains (Losses) on Securities

Net unrealized gains on securities were ¥1,342.9 billion, an increase of ¥537.0 billion from the previous fiscal year.

Net Exposure1 (Fiscal 2013 → Fiscal 2014)

  Taiyo Life Daido Life
Net exposure to domestic stocks2 4.8% → 6.6% 5.4% → 5.7%
Foreign currency exposure3 3.5% → 8.4% 3.7% → 4.6%
  • 1 Each company calculates its exposure percentages using its own method.
  • 2 Net exposure to domestic stocks includes stock futures, stock investment trusts, and stocks, etc., in monetary trusts, etc.
  • 3 Foreign currency exposure reflects foreign currency hedges, etc.

Gains (Losses) on Sales of Securities and Devaluation Losses on Securities

                      ¥ billions
  Three companies total   Taiyo Life   Daido Life
  15/3 14/3 Change   15/3 14/3 Change   15/3 14/3 Change
JGBs, other bonds ¥1.5 ¥4.5 ¥(2.9)   ¥1.2 ¥3.4 ¥(2.2)   ¥(0.0) ¥0.3 ¥(0.4)
Stocks, etc. 6.5 10.5 (4.0)   4.8 10.0 (5.2)   1.6 0.5 1.1
Foreign securities 18.5 (6.4) 24.9   12.3 (1.8) 14.1   6.2 (4.5) 10.8
Others (0.2) (1.1) 0.9   - - -   (0.2) (1.1) 0.9
Total ¥26.3 ¥7.5 ¥18.8   ¥18.4 ¥11.6 ¥6.7   ¥7.6 ¥(4.8) ¥12.5

Net Unrealized Gains (Losses) on Securities4

                      ¥ billions
  Three companies total   Taiyo Life   Daido Life
  15/3 14/3 Change   15/3 14/3 Change   15/3 14/3 Change
Domestic bonds ¥588.9 ¥389.8 ¥199.1   ¥307.9 ¥208.1 ¥99.7   ¥235.7 ¥157.0 ¥78.7
Domestic stocks 397.9 253.1 144.7   231.1 155.6 75.4   166.8 97.5 69.2
Foreign securities 294.1 131.8 162.3   206.3 101.1 105.2   87.7 30.7 57.0
Other securities 33.8 14.3 19.4   13.3 5.4 7.8   20.4 8.8 11.5
Others 28.0 16.6 11.3   7.1 6.6 0.4   8.4 8.9 (0.5)
Total ¥1,342.9 ¥805.8 ¥537.0   ¥765.9 ¥477.0 ¥288.9   ¥519.3 ¥303.2 ¥216.0
  • 4 Subject to securities with fair values.
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