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, 2016, net exposure of general account assets to domestic stocks after taking into account equity hedging was 6.5% for Taiyo Life and 6.1% for Daido Life. Foreign currency exposure after taking into account general account exchange hedging was 8.3% for Taiyo Life and 4.9% for Daido Life.
Gains (Losses) on Sales of Securities
The Group recorded net gains on sales of securities of ¥61.0 billion, an increase of ¥33.5 billion year on year.
Devaluation Losses on Securities
The Group recorded devaluation losses on securities of ¥4.1 billion, an increase of ¥3.0 billion year on year.
Net Unrealized Gains (Losses) on Securities
Net unrealized gains on securities were ¥1,565.4 billion, an increase of ¥222.4 billion from the previous fiscal year.
Net Exposure*1 (Fiscal 2014 → Fiscal 2015)
| Taiyo Life | Daido Life | |
|---|---|---|
| Net exposure to domestic stocks*2 | 6.6% → 6.5% | 5.7% → 6.1% |
| Foreign currency exposure*3 | 8.4% → 8.3% | 4.6% → 4.9% |
- *1 Each company calculates its exposure percentages using its own method.
- *2 The net exposure to domestic stocks includes stock investment trusts, etc.
- *3 Foreign currency exposure reflects foreign currency hedges, etc.
Gains (Losses) on Sales of Securities (Fiscal 2015)
| ¥ billions | |||||||||||
| Three companies total | Taiyo Life | Daido Life | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 16/3 | 15/3 | Change | 16/3 | 15/3 | Change | 16/3 | 15/3 | Change | |||
| JGBs, other bonds | ¥9.4 | ¥1.5 | ¥7.9 | ¥7.8 | ¥1.2 | ¥6.5 | ¥0.0 | ¥(0.0) | ¥0.0 | ||
| Stocks, etc. | 27.9 | 6.5 | 21.4 | 26.4 | 4.8 | 21.5 | 1.5 | 1.6 | (0.1) | ||
| Foreign securities | 23.5 | 19.3 | 4.1 | 10.3 | 12.7 | (2.4) | 13.1 | 6.5 | 6.6 | ||
| Others | 0.0 | - | 0.0 | - | - | - | 0.0 | - | 0.0 | ||
| Total | ¥61.0 | ¥27.4 | ¥33.5 | ¥44.6 | ¥18.9 | ¥25.7 | ¥14.7 | ¥8.1 | ¥6.5 | ||
Devaluation Losses on Securities (Fiscal 2015)
| ¥ billions | |||||||||||
| Three companies total | Taiyo Life | Daido Life | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 16/3 | 15/3 | Change | 16/3 | 15/3 | Change | 16/3 | 15/3 | Change | |||
| JGBs, other bonds | ¥- | ¥- | ¥- | ¥- | ¥- | ¥- | ¥- | ¥- | ¥- | ||
| Stocks, etc. | 0.0 | 0.0 | 0.0 | - | 0.0 | (0.0) | 0.0 | 0.0 | 0.0 | ||
| Foreign securities | 3.5 | 0.8 | 2.7 | - | 0.4 | (0.4) | 3.5 | 0.3 | 3.2 | ||
| Others | 0.5 | 0.2 | 0.2 | - | - | - | 0.5 | 0.2 | 0.2 | ||
| Total | ¥4.1 | ¥1.0 | ¥3.0 | ¥- | ¥0.4 | ¥(0.4) | ¥4.1 | ¥0.5 | ¥3.5 | ||
Net Unrealized Gains (Losses) on Securities (Fiscal 2015)
| ¥ billions | |||||||||||
| Three companies total | Taiyo Life | Daido Life | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 16/3 | 15/3 | Change | 16/3 | 15/3 | Change | 16/3 | 15/3 | Change | |||
| Domestic bonds | ¥993.2 | ¥588.9 | ¥404.2 | ¥505.0 | ¥307.9 | ¥197.0 | ¥400.4 | ¥235.7 | ¥164.6 | ||
| Domestic stocks | 294.9 | 397.9 | (102.9) | 150.2 | 231.1 | (80.9) | 144.7 | 166.8 | (22.0) | ||
| Foreign securities | 202.8 | 294.1 | (91.3) | 144.9 | 206.3 | (61.4) | 56.9 | 87.7 | (30.8) | ||
| Other securities | 9.1 | 33.8 | (24.6) | 0.9 | 13.3 | (12.4) | 8.1 | 20.4 | (12.2) | ||
| Others | 65.2 | 28.0 | 37.2 | 8.1 | 7.1 | 1.0 | 8.9 | 8.4 | 0.4 | ||
| Total | ¥1,565.4 | ¥1,342.9 | ¥222.4 | ¥809.2 | ¥765.9 | ¥43.2 | ¥619.2 | ¥519.3 | ¥99.9 | ||
- Items of market value are targeted.
