fy2011 summary report_e
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May 18, 2012
Summary of Consolidated Business Results of Tokio Marine Holdings, Inc.
under Japanese GAAP for the Year Ended March 31, 2012
(URL: http://www.tokiomarinehd.com/)
Representative: Shuzo Sumi President
Contact: Shusuke Kasahara
Scheduled date of ordinary general meeting of shareholders: June 25, 2012
Scheduled date for starting payment of dividends: June 26, 2012
Scheduled date for filing the securities report (Yuka Shouken Houkokusho): June 25, 2012
(Note) All amounts are truncated and all ratios are rounded.
1. Consolidated Business Results for the Year ended March 31, 2012 (April 1, 2011 to March 31, 2012)
(1) Consolidated Results of Operations (Note) Ratios reflect changes from the previous fiscal year.
Ordinary income Ordinary profit Net income
million yen % million yen % million yen %
Year ended March 31, 2012 26.7
Year ended March 31, 2011 -37.8
(Note) Comprehensive income:
Year ended March 31, 2012 -10,558 million yen
Year ended March 31, 2011 -196,554 million yen
Net income per share -
Basic
Net income per share -
Diluted
yen yen % % %
Year ended March 31, 2012 0.3 1.0 4.7Year ended March 31, 2011 3.5 0.7 3.8
(Reference purpose only) Equity in earnings (losses) of affiliates:
Year ended March 31, 2012 685 million yenYear ended March 31, 2011 2,343 million yen
(2) Consolidated Financial Conditions
Total assets Net assets Net assets per share
As of March 31, 2012As of March 31, 2011
(Reference purpose only) Equity capital:
As of March 31, 2012 1,839,604 million yen
As of March 31, 2011 1,886,544 million yen
(3) Consolidated Cash Flows
Year ended March 31, 2012
Year ended March 31, 2011
2. Dividends
Annual
total
yen yen yen yen yen million yen % %
Year ended March 31, 2011 50.00 38,597 54.1 1.9
Year ended March 31, 2012 50.00 38,346 639.4 2.1
Year ending March 31, 2013
(forecast)55.00 - 40.2 -
IR Conference: To be held (for analysts)
Ratio of
cash
dividends to
consolidated
net assets
Total
amount of
annual
dividends
25.00
3,415,984
25.00
27.50
11.4 2,460.21
million yen
Cash dividends per share
Third quarter
-
yen
2,398.66
Company Name: Tokio Marine Holdings, Inc. (the "Company") Stock Exchange Listings: Tokyo and Osaka
Securities Code Number: 8766 Head Office: Tokyo, Japan
6,001
3,288,605 71,924
Supplementary information for financial statements: Available
Ratio of equity to total assets
%
11.3
7.82 7.8192.4392.49
Corporate Planning Dept., Tokio Marine Holdings, Inc. Phone: 03-5223-3212
160,3243.9
Ratio of ordinary profit
to total assets
-7.9
Ratio of ordinary profit to
ordinary income
-91.7
-44.0
Ratio of net income
to equity
126,587
million yen
First quarter
Cash flows from financingactivities
Cash flows from operatingactivities
101,089
183,579
-200,542
Cash flows frominvesting activities
-97,121
million yen
Cash and cash equivalents at end of fiscal year
- 27.50
million yen
-
Second quarter
- 25.00
72,429
-25.00
16,528,644 1,904,47716,338,460
million yen million yen
1,857,465
1,092,680
1,120,399
Ratio of
cash
dividends to
consolidated
net income
-224,723
Year-end
-
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3. Consolidated Business Forecast for the year ending March 31, 2013 (April 1, 2012 to March 31, 2013)
(Note) Ratios reflect changes from the previous fiscal year.
For the year ending March 31,
2013
*Notes
(1) Significant changes with respect to the subsidiaries of the Company (changes in Specified Subsidiaries (“tokutei kogaisha”) that resulted in a change
in the scope of consolidation) during the fiscal year ended March 31, 2012: None
(a) Changes in accounting policies to reflect amendments of accounting standards and related matters: Yes(b) Changes in accounting policies other than (a): None
(3) Number of shares issued (common share)
(a) Total number of the shares issued (including treasury shares)
As of March 31, 2012 804,524,375 shares
As of March 31, 2011 804,524,375 shares
(b) Number of treasury shares held
As of March 31, 2012 37,596,309 shares
As of March 31, 2011 37,704,676 shares
(c) Average number of shares outstanding
During the year ended March 31, 2012 766,914,145 shares
During the year ended March 31, 2011 777,623,260 shares
(Reference purpose only) Summary of Non-consolidated Business Results of Tokio Marine Holdings, Inc. under Japanese GAAP
for the Year Ended March 31, 2012
1. Non-consolidated Business Results for the Year ended March 31, 2012 (April 1, 2011 to March 31, 2012)
(1) Non-consolidated Results of Operations (Note) Ratios reflect changes from the previous fiscal year.
Operating income Operating profit Net income
% % % %
Year ended March 31, 2012 -34.3 -36.1 -36.1 -22.6
Year ended March 31, 2011 295.4 354.4 353.4 -
Year ended March 31, 2012
Year ended March 31, 2011
(2) Non-consolidated Financial Conditions
Total assets Net assets Net assets per share
%
As of March 31, 2012
As of March 31, 2011
(Reference purpose only) Equity capital:
As of March 31, 2012 million yen
As of March 31, 2011 million yen
Ordinary profit Net income
million yen million yen
Net income per share -
Diluted
83,955 77,699
80.92
103.10
80.98
103.16
Net income per share -
Basic
million yenmillion yen
Ordinary profit
165,000
80,226
million yen
(Note) Please see "Changes in significant matters related to consolidated financial statements" on page 14 of the Appendix for details.
127,806
62,110
million yen %
1,649.5
77,747
(d) Retrospective restatements: None
%
2.9 105,000
(c) Changes in accounting estimates: None
million yen
3,234.16
million yen
Net income per share
121,630 121,621
(2) Changes in accounting policies, changes in accounting estimates, and retrospective restatements
2,482,926
2,480,024
yen yen
2,481,451
136.90
yen
yen
3,265.092,506,933
Ratio of equity to total assets
99.9
99.9
2,504,091
2,505,690
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2. Non-consolidated Business Forecast for the year ending March 31, 2013 (April 1, 2012 to March 31, 2013)
(Note) Ratios reflect changes from the previous fiscal year.
Operating income
% % %
For the year ending March 31,
2013-40.4 -44.7 -30.8
*Notes concerning the business forecast and other items
Net income per share
This “Summary of Consolidated Business Results” is outside the scope of the external auditor’s annual audit procedure required by the Financial Instruments
and Exchange Act. The audit process has not been completed as of the date of the disclosure in the “Summary of Consolidated Business Results”.
Any business forecasts contained in this document are based on information available to the Company as of the date of this document and certain assumptions,
and actual results may materially differ from the forecasts depending upon various factors. For key assumptions for the business forecasts and other related
information, please refer to "Business Results" on page 2 of the Appendix.
50,000 43,000 43,000
*Disclosure regarding the execution of the audit process
56.06
million yen million yen
Ordinary profit
yen
Net income
million yen
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Contents of Appendix
1. Business results ························································································································ 2(1) Analysis on business results···································································································· 2
(2) Analysis on financial condition ······························································································ 3
2. Management Policies················································································································ 5
(1) Management policies ·············································································································· 5
(2) Targeted management indices································································································· 5
(3) Medium- to long- term business strategies and issues facing Tokio Marine Group··············· 6
3. Consolidated Financial Statements··························································································· 8
(1) Consolidated Balance Sheet···································································································· 8
(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income·9
(3) Consolidated Statement of Changes in Shareholders' Equity ··············································· 11
(4) Consolidated Statement of Cash Flows ················································································ 13
(5) Notes regarding going concern assumption·········································································· 14
(6) Changes in significant matters related to consolidated financial statements ························ 14
(7) Additional information·········································································································· 14
(8) Notes to consolidated financial statements··········································································· 15
Segment information··············································································································· 15
Per share information ·············································································································· 16
Business combinations and other matters················································································ 17
Subsequent events ··················································································································· 20
4. Others ····································································································································· 21
(1) Summary of Consolidated Business Results for the Fiscal Year ended March 31, 2012······ 21
(2) Premiums written and claims paid by lines of insurance······················································ 22
(3) Securities······························································································································· 23
(4) Information on derivatives···································································································· 26
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1. Business results
(1) Analysis on business results
(a) Consolidated results of operations for the fiscal year ended March 31, 2012
During the fiscal year ended March 31, 2012, higher capital and consumer spending and other positive factors contributed to a gradual recovery in the U.S. economy, whereas Europeaneconomies weakened owing to sovereign debt problems, the most prominent being those of Greece. In developing nations economic growth slowed as a result of tighter monetary policies
and other factors.
In Japan, the economy gradually improved despite the presence of negative factors such as theeffects of the Great East Japan Earthquake, supply-chain disruptions resulting from theearthquake and the strength of the yen against other currencies.
Under these conditions, as a result of our efforts to improve performance centered on our
property and casualty and life insurance businesses, our operating results for the year endedMarch 31, 2012 were as follows:
Compared to the fiscal year ended March 31, 2011, ordinary income increased by 127.3 billionyen to 3,415.9 billion yen, the main components of which were 2,978.1 billion yen inunderwriting income and 372.9 billion yen in investment income. Compared to the fiscal year ended March 31, 2011, ordinary expenses increased by 93.6 billion yen to 3,255.6 billion yen,the main components of which were underwriting expenses of 2,698.3 billion yen, investmentexpenses of 38.1 billion yen, and operating and general administrative expenses of 515.5 billionyen.
As a result, ordinary profit increased by 33.7 billion yen to 160.3 billion yen. Net income,
composed of ordinary profit plus extraordinary gains minus extraordinary losses and totalincome taxes, decreased by 65.9 billion yen to 6.0 billion yen.
Results from our reporting segments are as follows.
In the domestic property and casualty insurance business, ordinary income was 2,663.3 billionyen, an increase of 237.5 billion yen from the fiscal year ended March 31, 2011. Ordinary profit composed of ordinary income minus ordinary expenses (including 1,442.3 billion yen of net claims paid and other) was 205.7 billion yen, an increase of 101.1 billion yen from the fiscal
year ended March 31, 2011.
In the domestic life insurance business, ordinary income was 430.2 billion yen, a decrease of 11.9 billion yen from the fiscal year ended March 31, 2011. Ordinary profit composed of ordinary income minus ordinary expenses (including 131.7 billion yen of life insurance claimsand other) was 7.5 billion yen, an increase of 0.3 billion yen from the fiscal year ended March31, 2011.
In the overseas insurance business, ordinary income was 530.2 billion yen, a decrease of 9.6 billion yen from the fiscal year ended March 31, 2011. Ordinary profit/loss composed of ordinary income minus ordinary expenses (including 217.7 billion yen of net claims paid andother) was ordinary loss of 54.6 billion yen, a decrease of 69.1 billion yen from the fiscal year
ended March 31, 2011.
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(b) Consolidated business forecast for the fiscal year ending March 31, 2013
Our consolidated business forecast for the fiscal year ending March 31, 2013 is 165.0 billion
yen in ordinary profit and 105.0 billion yen in net income. Our forecast is primarily based onthe following assumptions.
- With regard to net premiums written and life insurance premiums, we expect 2,490.0 billionyen and 430.0 billion yen respectively, based on our own projections taking intoconsideration the results of previous years.
- As for net incurred claims related to natural disasters, based on our prior experience we
expect 30.0 billion yen by Tokio Marine & Nichido Fire Insurance Co., Ltd. ("Tokio Marine& Nichido") and 3.0 billion yen by Nisshin Fire & Marine Insurance Co., Ltd.
- With regard to interest rates, exchange rates and equity market conditions, we assume there
will not be significant changes from market rates and conditions as of March 31, 2012.
The forecast described above is based on the information available to the Company as of thedate of this document and the assumptions above. The actual results may materially differ from the forecast depending upon various factors.
(2) Analysis on financial condition
As of March 31, 2012, consolidated total assets were 16,338.4 billion yen. This represents adecrease of 190.1 billion yen, which was partly attributable to a decrease in investment assetsdue to decreased security borrowing transaction.
Cash flows for the fiscal year ended March 31, 2012 were as follows:
Net cash provided by operating activities was 72.4 billion yen, a decrease of 111.1 billion yen
compared to the fiscal year ended March 31, 2011, due partly to an increase in claims paid. Net cash used in investing activities decreased by 103.4 billion yen to 200.5 billion yen, mainlyas a result of a decrease in payables under security lending transactions. Due mainly to anincrease in proceeds from borrowing, net cash provided by financing activities increased by325.8 billion yen to 101.0 billion yen.
As a result, the balance of cash and cash equivalents was 1,092.6 billion yen, a decrease of 27.7 billion yen from the fiscal year ended March 31, 2011.
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The capital ratios and market-value basis capital ratios are shown below.(%)
Fiscal year ended
March 31,2008
Fiscal year ended
March 31,2009
Fiscal year ended
March 31,2010
Fiscal year ended
March 31,2011
Fiscal year ended
March 31,2012
Capital ratios 14.8 10.7 12.6 11.4 11.3
Market-value basis
capital ratios17.1 12.4 12.0 10.3 10.7
Note 1. The “capital ratio” is defined by (“equity capital” / “total assets”) x 100.
Note 2. The “market-value basis capital ratio” is defined by (“market capitalization” / “total assets”)x 100.
Note 3. As Tokio Marine Group’s main business is the insurance business, "Cash flow andinterest-bearing liabilities ratio" and "Interest coverage ratio" are not stated.
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2. Management Policies
(1) Management policies
In November 2003, the Company formulated the “Tokio Marine Group Corporate Philosophy”
to be upheld by all officers and employees of the Group.
“Tokio Marine Group Corporate Philosophy”
Tokio Marine Group is committed to the continuous enhancement of corporate value, with
customer trust at the base of all of its activities.
- By providing customers with the highest quality products and services, we will spread safety
and security to all around us.
- For fulfilling our responsibility to shareholders, we will pursue global development of sound,growing and profitable businesses.
- For promoting the creativity of each and every employee, we will foster a corporate culture
which encourages free and open communications.
- While demonstrating responsible management as a good corporate citizen, we will make a
positive contribution to society.
(2) Targeted management indices
As target indices to present business results of the overall Group, the Company adopts “adjustedearnings” and “adjusted return on equity (ROE) ”. For the fiscal year ending March 31, 2013,
the Company expects approximately 165.0 billion yen in adjusted earnings and 5.8% as an
adjusted ROE.
(Note) In order to capture and enhance the corporate value of Tokio Marine Group, targeted earnings and the ROE are
based on “adjusted earnings”, which are calculated as follows:
• Adjusted ROE = Adjusted earnings / Adjusted capital (average balance basis)
• Adjusted Earnings*1 = Total of adjusted earnings for each business segment described below
(a) Property and casualty insurance business
Adjusted earnings = Net income determined following financial accounting principles + Provision for
catastrophe reserve, etc.*2 + Provision for price fluctuation *2 – Gains (losses) from sales or valuations of
ALM bonds and interest rate swaps*3 – Gains (losses) from sales or valuations of stocks and properties –
Extraordinary gains/losses, valuation allowances and others
(b) Life insurance business*4
Adjusted earnings = Increase in embedded value*5 during the fiscal year – Capital transactions, such as
capital increase
(c) Other businesses
Net income determined following financial accounting principles
• Adjusted Capital*1 = Total of adjusted capital of each business segment described below
(a) Property and casualty insurance business
Adjusted capital = Capital determined following financial accounting principles + Catastrophe reserve,etc. + Price fluctuation reserve
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(b) Life insurance business
Adjusted capital = Embedded value
(c) Other businesses
Net assets determined following financial accounting principles
*1 After tax
*2 Reversals are subtracted
*3 ALM: asset liability management
Fluctuations in the market value of liabilities of ALM is excluded
*4 Calculation are based on (c) above for life insurance companies in certain regions (overhead costs incurred by
the head office are deducted from profits)
*5 Embedded value: An indexed value in which the net present value of profits to be gained from premiums
written is added to the net asset value
The adjusted earnings and the adjusted ROE above for the fiscal year ending March 31, 2013 were announced in the
press release dated May 18, 2012.
(3) Medium- to long-term business strategies and issues facing Tokio Marine Group
In order for Tokio Marine Group to maintain sustainable growth in the current challenging
business environment, we think it essential that we provide quality products and services
offering value which customers can appreciate, so that we will attract more customers and
strengthen our corporate structure, which can improve our global competitiveness.
In “Innovation and Execution 2014”, Tokio Marine Group aims to steadily build on its prior
efforts and push to fulfill our medium- to long-term business vision of becoming a “global
insurance group maintaining growth by offering quality that customers select”.
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(Strategies in our core businesses)
[Domestic property and casualty insurance business]
To improve the profitability of our mainstay auto insurance we aim to revise our coverage andpremiums, and further curtail operating expenses. We also plan to comprehensively improve
our points of contact with customers in order to steadily maintain our competitive advantage.
Through these efforts, we aim to achieve industry-leading growth and a business structure that
can maintain a combined ratio* of about 95%.
[Domestic life insurance business]
We will use our Group strength of property and casualty insurance representative channels to
cross-market and further promote consulting product sales. We will also target sustainable
growth by expanding the market through the introduction of new products and other efforts.
[Overseas insurance business]
We intend to achieve stable and high profitability through operations centering on PhiladelphiaConsolidated Holding Corp., Kiln Group Limited and reinsurance companies, our core overseas
firms. We are working for a successful management integration with Delphi Financial Group
Inc., while actively pursuing business expansion in Asia, Brazil and other emerging economies
to ensure future growth. We plan to continue our investments in new businesses which may
improve our capital efficiency.
[Financial and other business]
In the course of developing its financial services business, the Group will focus on fee-based
asset management businesses offering high capital efficiency. In its general businesses, the
Group will use its risk management and certain other businesses to foster synergies within the
Group and contribute to our overall growth and profitability.
* Combined ratio is a profitability indicator for the property and casualty insurance businesses that is
calculated as a percentage by using premiums-written as the denominator and claims-paid plus expenses
as the numerator. A 100% combined ratio means balanced income and expenditure, and a combined
ratio below 100% indicates more profitable underwriting.
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3. Consolidated Financial Statements
(1) Consolidated Balance Sheet
(Yen in millions)
(Assets)
398,488 405,432
207,541 128,391
121,967 304,931
30,725 58,753
1,080,670 863,794
14,056 3,163
12,173,088 12,229,159
482,899 424,743
313,760 303,819
Land 144,590 144,356
Buildings 139,144 137,455
Construction in progress 6,604 1,818
Other tangible fixed assets 23,421 20,189
344,479 320,145
Software 4,841 4,786Goodwill 258,022 243,091
Other intangible fixed assets 81,616 72,266
1,160,925 1,066,905
149,030 174,201
72,547 74,359
-21,536 -19,340
16,528,644 16,338,460
(Liabilities)
11,868,495 11,822,090
Outstanding claims 1,363,211 1,444,219
Underwriting reserves 10,505,284 10,377,870
125,079 111,140
2,144,469 2,051,509
1,375,838 1,142,039
Other liabilities 768,631 909,470
166,199 175,094
18 25
22,424 24,381
65,855 70,137
Price fluctuation reserve 65,855 70,137
37,864 41,291
121,213 110,964
72,547 74,35914,624,167 14,480,995
(Net assets)
Shareholders' equity
Share capital 150,000 150,000
Retained earnings 1,135,510 1,104,810
Treasury shares -109,749 -109,418
Total shareholders' equity 1,175,760 1,145,391
822,481 828,245
16,483 22,780
-128,181 -156,812
710,783 694,213
1,426 1,598
16,506 16,261
1,904,477 1,857,465
16,528,644 16,338,460
As of March 31, 2011 As of March 31, 2012
Total net assets
Share acquisition rights
Non-controlling interests
Corporate bonds
Retirement benefit obligations
Acceptances and guarantees
Insurance liabilities
Other liabilities
Total liabilities and net assets
Tangible fixed assets
Intangible fixed assets
Negative goodwill
Total liabilities
Other assets
Total assets
Deferred tax assets
Customers' liabilities under acceptances and
guarantees
Allowance for doubtful accounts
Provision for employees' bonus
Reserve under the special law
Deferred tax liabilities
Payables under security lending transactions
Retirement benefit obligations for directors and corporate
auditors
Loans
Cash and bank deposits
Call loans
Monetary receivables bought
Money trusts
Securities
Receivables under resale agreements
Receivables under security borrowing transactions
Accumulated other comprehensive income
Total accumulated other comprehensive income
Unrealized gains on securities, net of taxes
Deferred gains/losses on hedge transactions
Foreign currency translation adjustments
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(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
(Consolidated Statement of Income)
(Yen in millions)
3,288,605 3,415,984
2,874,082 2,978,100
2,272,117 2,324,492
125,301 141,640
64,997 60,800
405,361 344,550
- 100,727
6,304 5,888
347,757 372,910
219,951 226,291
46 289
11,737 3,608
137,446 139,434
1,222 292
30,405 -
- 52,693
11,945 11,100
-64,997 -60,800
66,766 64,974
Amortization of negative goodwill 10,250 10,250
2,343 68554,172 54,038
3,162,018 3,255,660
2,512,937 2,698,374
1,339,724 1,660,040
93,749 97,130
448,444 445,605
273,929 256,028
509 765
166,253 155,113
176,563 78,014
7,016 -
6,744 5,676
105,798 38,197
75 295
13,694 18,253
24,559 10,172
4,635 3,220
- 1,998
28,282 -
34,550 4,257
534,487 515,563
12,660 9,375
4,502 2,839
729 -
149 56
Amortization of deferred assets under Article 113 of
the Insurance Business Law1,061 1,659
6,217 4,820
-3,865 -5,850
126,587 160,324
5,360 4,9012,980 3,132
Gains on negative goodwill 55 57
76 -
2,247 1,712
24,263 11,962
4,253 2,542
5,390 1,364
- 2,762
- 113
4,454 4,282
Provision for price fluctuation 4,454 4,282
3,029 -
7,135 897
107,684 153,263
59,752 72,931-25,538 73,935
34,213 146,866
73,470 6,397
1,546 395
71,924 6,001 Net income
Other underwriting income
Income taxes - deferred
Total income taxes
Income before non-controlling interests
Non-controlling interests
Other extraordinary losses
Income before income taxes and non-controlling interests
Income taxes - current
Losses on step acquisitions
Losses on changes in equity of subsidiaries and affiliates
Provision under the special law
Effect of initial application of Accounting Standard for
Asset Retirement Obligations
Extraordinary gainsGains on disposal of fixed assets
Gains on changes in equity of subsidiaries and affiliates
Other extraordinary gains
Extraordinary losses
Losses on disposal of fixed assets
Impairment losses on fixed assets
Other ordinary expenses
Deferred expenses under Article 113 of the Insurance
Business Law
Ordinary profit
Other ordinary expenses
Interest expenses
Increase in allowance for doubtful accounts
Losses on bad debts
Losses on derivatives
Investment losses on separate accounts
Other investment expenses
Operating and general administrative expenses
Losses on money trusts
Losses on sales of securities
Impairment losses on securities
Losses on redemption of securities
Provision for outstanding claims
Provision for underwriting reserves
Other underwriting expenses
Investment expenses
Agency commissions and brokerage
Maturity refunds to policyholders
Dividends to policyholders
Life insurance claims
Ordinary expenses
Underwriting expenses
Net claims paid
Loss adjustment expenses
Transfer of investment income on deposit premiums
Other ordinary income
Equity in earnings of affiliatesOther ordinary income
Gains on redemption of securities
Gains on derivatives
Investment gains on separate accounts
Other investment income
Interest and dividends
Gains on money trusts
Gains on trading securities
Gains on sales of securities
Life insurance premiums
Reversal of underwriting reserves
Investment income
Underwriting income
Net premiums written
Deposit premiums from policyholders
Investment income on deposit premiums
Year ended March 31, 2011 Year ended March 31, 2012
Ordinary income
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(Consolidated Statement of Comprehensive Income)
(Yen in millions)
73,470 6,397
Other comprehensive income
-215,287 6,733
3,782 6,297
-57,488 -31,495
-1,031 1,508
Total other comprehensive income -270,024 -16,955
Total comprehensive income -196,554 -10,558
(Split between)
-197,550 -10,032
996 -526
Year ended March 31, 2011 Year ended March 31, 2012
Income before non-controlling interests
Unrealized gains on securities, net of taxes
Comprehensive income attributable to non-controlling
interests
Deferred gains/losses on hedge transactions
Foreign currency translation adjustments
Share of other comprehensive income of affiliates accounted
for by the equity method
Comprehensive income attributable to owners of the parent
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(3) Consolidated Statement of Changes in Shareholders' Equity
(Yen in millions)
Shareholders' equityShare capital
Beginning balance 150,000 150,000
Changes during the year
Total changes during the year - -
Ending balance 150,000 150,000
Retained earnings
Beginning balance 1,098,403 1,135,510
Changes in accounting policies applied to foreign affiliates 6,264 -
Changes during the year
Dividends -39,904 -38,343
Net income 71,924 6,001
-70 -30
- 2,089
Changes in the scope of equity method -799 -88
Others (Note) -307 -327
30,841 -30,699
Ending balance 1,135,510 1,104,810
Treasury shares
Beginning balance -59,481 -109,749
Changes during the year
Repurchase of treasury shares -50,587 -38
319 368
-50,267 330
Ending balance -109,749 -109,418
Total shareholders' equity
Beginning balance 1,188,921 1,175,760
Changes in accounting policies applied to foreign affiliates 6,264 -
Changes during the year
Dividends -39,904 -38,343
Net income 71,924 6,001
Repurchase of treasury shares -50,587 -38
249 338
- 2,089-799 -88
Others (Note) -307 -327
-19,425 -30,369
Ending balance 1,175,760 1,145,391
Accumulated other comprehensive income
Unrealized gains on securities, net of tax
Beginning balance 1,037,168 822,481
Changes during the year
Net changes in items other than shareholders ' equity -214,686 5,763
Total changes during the year -214,686 5,763
Ending balance 822,481 828,245
Deferred gains/losses on hedge transactions
Beginning balance 12,700 16,483
Changes during the year
Net changes in items other than shareholders ' equity 3,782 6,297
Total changes during the year 3,782 6,297
Ending balance 16,483 22,780
Disposition of treasury shares
Changes in the scope of consolidationChanges in the scope of equity method
Total changes during the year
Changes in the scope of consolidation
Total changes during the year
Disposition of treasury shares
Total changes during the year
Year ended March 31, 2011 Year ended March 31, 2012
Disposition of treasury shares
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(Yen in millions)
Foreign currency translation adjustmentsBeginning balance -69,825 -128,181
Changes during the year
Net changes in items other than shareholders ' equity -58,355 -28,631
Total changes during the year -58,355 -28,631
Ending balance -128,181 -156,812
Share acquisition rights
Beginning balance 1,102 1,426
Changes during the year
Net changes in items other than shareholders' equity 324 171
Total changes during the year 324 171
Ending balance 1,426 1,598
Non-controlling interests
Beginning balance 14,727 16,506
Changes during the year
Net changes in items other than shareholders' equity 1,778 -244
Total changes during the year 1,778 -244
Ending balance 16,506 16,261
Total net assets
Beginning balance 2,184,795 1,904,477
Changes in accounting policies applied to foreign affiliates 6,264 -
Changes during the year
Dividends -39,904 -38,343
Net income 71,924 6,001
Repurchase of treasury shares -50,587 -38
Disposition of treasury shares 249 338
- 2,089
Changes in the scope of equity method -799 -88
Others (Note) -307 -327
Net changes in items other than shareholders' equity -267,157 -16,642
Total changes during the year -286,582 -47,012
Ending balance 1,904,477 1,857,465
(Note) “Others” consisted mainly of reclassification adjustments of tax effects initially appraised in accordance with accounting policies adopted by foreign
consolidated subsidiaries.
Year ended March 31, 2011 Year ended March 31, 2012
Changes in the scope of consolidation
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(4) Consolidated Statement of Cash Flows(Yen in millions)
I Cash flows from operating activities
Income before income taxes and non-controlling interests 107,684 153,263
Depreciation 31,058 30,033
Impairment losses on fixed assets 5,390 1,364
Amortization of goodwill 16,580 16,719
Amortization of negative goodwill -10,250 -10,250
Gains on negative goodwill -55 -57
Increase in outstanding claims 178,182 78,970
Increase/decrease in underwriting reserves 4,162 -103,533
Decrease in allowance for doubtful accounts -3,688 -1,937
Increase in retirement benefit obligations 6,160 7,193
Increase in retirement benefit obligations for directors and corporate auditors 5 7
Increase/decrease in provision for employees' bonus -1,942 1,900
Decrease in provision for demolition of fixed assets -1,603 -
Increase in price fluctuation reserve 4,454 4,282
Interest and dividends -219,951 -226,291
Net gains on securities -105,010 -111,213
Interest expenses 4,502 2,839
Foreign exchange losses 24,772 2,435
Gains/losses on tangible fixed assets (negative) 2,830 -547
Equity in earnings of affiliates -2,343 -685
Investment gains/losses on separate accounts (negative) 28,282 -52,693
Increase/decrease in other assets (other than investing and financing activities) (negative) -22,161 74,863
Increase in other liabilities (other than investing and financing activities) 22,140 17,080
Others 2,932 -3,486
Sub-total 72,131 -119,741
Interest and dividends received 214,487 229,473
Interest paid -4,671 -2,920
Income taxes paid -102,649 -38,498
Others 4,281 4,115
Net cash provided by operating activities 183,579 72,429
II Cash flows from investing activities
Net increase in deposit (negative) 23,177 -146,996
Purchases of monetary receivables bought -807,992 -341,959
Proceeds from sales and redemption of monetary receivables bought 984,746 560,155
Increase in money trusts -3,000 -
Decrease in money trusts 692 10,887Purchases of securities -3,480,949 -2,940,037
Proceeds from sales and redemption of securities 3,394,623 2,962,968
New loans -200,828 -183,064
Proceeds from collection of loans 261,983 240,412
Change in cash collateral under security lending transactions -251,372 -335,223
Others -3,570 -2,095
II (a) Sub-total -82,490 -174,953
( Ⅰ + Ⅱ(a) ) 101,088 -102,524
Purchases of tangible fixed assets -24,235 -21,341
Proceeds from sales of tangible fixed assets 9,604 6,911
Payments related to acquisition of consolidated subsidiaries - -10,983
Payments to acquire equity of subsidiaries - -175
Net cash used in investing activities -97,121 -200,542
III Cash flows from financing activities
Proceeds from borrowing 50,000 170,000Repayments of borrowing -167,908 -88,703
Proceeds from issuance of short-term corporate bonds 9,999 -
Redemption of short-term corporate bonds -10,000 -
Proceeds from issuance of corporate bonds 271 100
Redemption of corporate bonds -53,361 -13,857
Change in cash collateral under security lending transactions 38,658 73,396
Repurchases of treasury share -50,587 -38
Dividends paid -39,848 -38,302
Dividends paid to non-controlling interests -249 -588
Proceeds from paid-up share capital from non-controlling interests 1,140 1,079
Others -2,837 -1,995
Net cash provided by/used in financing activities -224,723 101,089
Ⅳ Effect of exchange rate changes on cash and cash equivalents -10,220 -6,562
Ⅴ Net increase in cash and cash equivalents -148,485 -33,586
Ⅵ Cash and cash equivalents at beginning of year 1,268,885 1,120,399
VII Net increase in cash and cash equivalents due to newly consolidated subsidiaries - 4,231
VIII Net increase in cash and cash equivalents due to merger with non-consolidated subsidiaries - 1,635
IX Cash and cash equivalents at end of year 1,120,399 1,092,680
Year ended
March 31, 2012
Year ended
March 31, 2011
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(5) Notes regarding going concern assumption
Not applicable.
(6) Changes in significant matters related to consolidated financial statements
(Changes in accounting policies resulting from revisions of accounting standards or other policies)
The Company has started to apply "Accounting Standard for Earnings Per Share" (ASBJ
Statement No.2, June 30, 2010) and "Guidance on Accounting Standard for Earnings Per Share"(ASBJ Guidance No.4, June 30, 2010) from the fiscal year beginning on April 1, 2011.
The Company has changed its method of calculating diluted net income per share. Under the
new method, for share option rights which vest after a specified period of service, the fair valueamount of the share options for service expected to be provided in the future is included in the proceeds assumed to be received when options are exercised.
The effect of the adoption of the aforementioned accounting standard is described in "Per share
information" on page 16 of the Appendix.
(7) Additional Information
(Effects of changes in the corporate income tax rate)
Following the promulgation of the “Act for Partial Amendment of the Income Tax Act, etc. for the Purpose of Creating a Taxation System Responding to Changes in Economic and SocialStructures” (Act No. 114, 2011) and the “Act on Special Measures for Securing Financial
Resources Necessary to Implement Measures for Reconstruction following the Great East JapanEarthquake” (Act No. 117, 2011) on December 2, 2011, the corporate income tax rate will belowered and a special restoration surtax will be imposed from the fiscal year beginning on April1, 2012.
As a result of this change, deferred tax assets (net of deferred tax liabilities) decreased by 16.1 billion yen and unrealized gains on securities, net of taxes increased by 62.5 billion yen. Also,income before income taxes and non-controlling interests increased by 15.4 billion yen and netincome decreased by 64.5 billion yen.
Statutory effective tax rates applied to the Company and Tokio Marine & Nichido FireInsurance Co., Ltd. are as follows:a. Tax rates applied to the Company;- Before the change : 40.7%- Fiscal years beginning between April 1, 2012 and April 1, 2014 : 38.0%- Fiscal years beginning on and after April 1, 2015 : 35.6%
b. Tax rates applied to Tokio Marine & Nichido Fire Insurance Co., Ltd.- Before the change : 36.1%- Fiscal years beginning between April 1, 2012 and April 1, 2014 : 33.2%- Fiscal years beginning on and after April 1, 2015 : 30.7%
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(8) Notes to consolidated financial statements
Segment information
Year ended March 31, 2011
Domestic
property and
casualty
insurance
Domestic
life
insurance
Overseas
insurance
Financial
and other Total
Ordinary income
2,418,883 441,960 539,732 47,002 3,447,578 -158,973 3,288,605
6,897 275 175 23,862 31,211 -31,211 -
Total 2,425,781 442,235 539,908 70,864 3,478,789 -190,184 3,288,605
104,576 7,129 14,453 2,098 128,257 -1,670 126,587
Segment assets 8,218,061 6,036,083 1,950,366 350,536 16,555,048 -26,403 16,528,644
Other items
Depreciation 18,409 342 11,936 370 31,058 - 31,058
Amortization of goodwill 283 - 16,296 - 16,580 - 16,580
8,917 248 918 165 10,250 - 10,250
Interest and dividends 114,428 63,444 43,133 175 221,182 -1,230 219,951
Interest paid 2,992 857 195 556 4,601 -99 4,502
- - 2,343 - 2,343 - 2,343
- - 22,936 - 22,936 - 22,936
22,087 577 7,108 204 29,978 -25 29,953
(Note)
1. Descriptions of "Adjustments" are as follows:
2. "Segment profit" is reconciled to "Ordinary profit" in the consolidated statement of income.
Year ended March 31, 2012
Domestic
property and
casualty
insurance
Domestic
life
insurance
Overseas
insurance
Financial
and other Total
Ordinary income
2,656,923 430,157 530,060 44,186 3,661,326 -245,341 3,415,984
6,429 122 187 24,922 31,662 -31,662 -
Total 2,663,352 430,280 530,247 69,109 3,692,989 -277,004 3,415,984
205,737 7,523 -54,653 1,715 160,323 0 160,324
Segment assets 7,834,483 6,162,382 2,055,259 312,368 16,364,492 -26,032 16,338,460Other items
Depreciation 18,300 422 10,833 477 30,033 - 30,033
Amortization of goodwill 283 - 16,435 - 16,719 - 16,719
8,917 248 919 165 10,250 - 10,250
Interest and dividends 120,340 63,461 43,480 156 227,438 -1,146 226,291
Interest paid 1,793 782 16 311 2,903 -64 2,839
- - 685 - 685 - 685
- - 15,610 - 15,610 - 15,610
10,379 401 4,045 8,752 23,579 -36 23,542
(Note)
1. Descriptions of "Adjustments" are as follows:
2. "Segment profit" is reconciled to "Ordinary profit" in the consolidated statement of income.
(3) "Adjustments" for "Segment assets" of -26,032 million yen is the elimination of inter-segment transactions.
(4) "Adjustments" for "Other items" is the elimination of inter-segment transactions.
"Provision for underwriting reserves" of 175,337 million yen. This item is included in "Ordinary expenses" of "Domestic life insurance"
segment, while in the consolidated statement of income this amount is included in "Reversal of underwriting reserves" within
(2) "Adjustments" for "Segment profit" of 0 million yen is the elimination of inter-segment transactions.
"Ordinary income".
Investments in affiliates accounted for by the
equity method
Increase in tangible and intangible fixed assets
(1) The major component of "Adjustments" for "Ordinary income from external customers" amounted to -245,341 million yen is the transfer of
Segment profit
Amortization of negative goodwill
Equity in earnings of affiliates
Ordinary income from external customers
Ordinary income from transactions with other
operating segments
(Yen in millions)
Reportable segments
Adjustments
(Note 1)
Amounts
shown on the
consolidated
financial
statements
(Note 2)
(Yen in millions)
(3) "Adjustments" for "Segment assets" of -26,403 million yen is the elimination of inter-segment transactions.
(4) "Adjustments" for "Other items" is the elimination of inter-segment transactions.
"Ordinary expenses".
Adjustments
(Note 1)
Amounts
shown on the
consolidated
financial
statements
(Note 2)
Reportable segments
(1) The major component of "Adjustments" for "Ordinary income from external customers" amounted to -158,973 million yen is the transfer of
"Reversal of underwriting reserves" of 157,291 million yen. This item is included in "Ordinary income" of "Domestic property and casualty
insurance" segment, while in the consolidated statement of income this amount is included in "Provision for underwriting reserves" within
(2) "Adjustments" for "Segment profit" of -1,670 million yen is the elimination of inter-segment transactions.
Ordinary income from external customers
Ordinary income from transactions with other
operating segments
Increase in tangible and intangible fixed assets
Equity in earnings of affiliates
Amortization of negative goodwill
Investments in affiliates accounted for by the
equity method
Segment profit
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Per share information
(Yen)
Net assets per share
Net income per share - Basic
Net income per share - Diluted
(Changes in accounting policies)
Net income per share - Basic
Net income (Yen in millions)
Average number of shares outstanding (In thousand shares)
Net income per share - Diluted
Adjustment of net income (Yen in millions)
Increase in number of common shares (In thousand shares)
[Number of share acquisition rights (In thousand shares)]
71,924
487 593
-
766,914
-
487
2,460.21
92.49
-
6,001
7.82
7.81
The Company has started to apply "Accounting Standard for Earnings Per Share" (ASBJ Statement No.2, June 30, 2010) and "Guidance on
Accounting Standard for Earnings Per Share" (ASBJ Guidance No.4, June 30, 2010) from the fiscal year beginning on April 1, 2011.
Without application of the standard and guidance above, diluted net income per share for the fiscal year ended March 31, 2011 was 92.42 yen.
-
777,623
593
6,001
Year ended March 31, 2011 Year ended March 31, 2012
Year ended March 31, 2011 Year ended March 31, 2012
(Note) Calculation of "Net income per share - Basic" and "Net income per share - Diluted" is based on the following figures.
2,398.66
92.43
Net income not attributable
to common shareholders (Yen in millions)
The Company has changed its method of calculating diluted net income per share. Under the new method, for share option rights which vest
after a specified period of service, the fair value amount of the share options for service expected to be provided in the future is included in the
proceeds assumed to be received when options are exercised.
Net income attributable
to common shareholders (Yen in millions)71,924
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Business combinations and other matters
1. Business combination by acquisitionOn November 29, 2011, the Company acquired 50% of the issued shares of First Insurance
Company of Hawaii, Ltd. (“FICOH”) and made it a wholly owned subsidiary through Tokio Marine
& Nichido, a subsidiary of the Company. The acquired shares of FICOH were previously owned
by CNA Financial Corporation, a major insurance group in the U.S., through its subsidiary The
Continental Insurance Company.
(1) Outline of the business combination
a. Name of the acquiree
First Insurance Company of Hawaii, Ltd.
b. Business
Property and casualty insurance
c. Business combination objectives
Tokio Marine Group is seeking further growth in both earnings and scale in the U.S. insurance
market, by combining FICOH's high profile and strong brand with Tokio Marine Group’s
strengths of superior financial ratings and underwriting capacity and back-office support
capabilities.
d. Date of the business combination November 29, 2011
e. Form of the business combination
Acquisition of shares by cash
f. Voting rights acquired through the business combination
Voting rights held immediately prior to the business combination 50%
Additional voting rights acquired on the date of the business combination 50%
Voting rights after the acquisition 100%
(2) Period for which the acquiree’s operating results are included in the consolidated statement of
income of the Company
The deemed acquisition date is December 31, 2011. Prior to the date, the acquiree’s operating
results were accounted as equity in earnings of affiliates.
(3) Acquisition cost and its detail
Fair value as of the date of the business combination of FICOH
shares held immediately prior to the business combination 12,723 million yen
Fair value of additional FICOH shares acquired on the date of 12,723 million yen
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business combination
Direct costs of the acquisition 61 million yen
Acquisition cost 25,507 million yen
(4) Difference between the acquisition cost and the total cost of each transaction in the acquisition
Acquisition cost 25,507 million yen
Total cost of each transaction in the acquisition 28,269 million yen
Loss on step acquisition -2,762 million yen
(5) Amount, reason for recognition, method and period of amortization of goodwill
a. Amount of goodwill
1,653 million yen
b. Reason for recognition of goodwill
The acquisition cost of the acquiree, which was calculated by taking into account projections of
the acquiree’s future revenue as of the valuation date, exceeded the net amounts of assets
acquired and liabilities assumed.
c. Period and method of amortization of goodwill
2 years using the straight line method
(6) Assets and liabilities assumed on the date of the business combination and their main
components
ItemAmount
(Yen in millions)Item
Amount
(Yen in millions)
Total assets 53,215 Total liabilities 29,361
(Securities) 44,166 (Insurance liabilities) 27,304
(7) Approximate impact on the consolidated statement of income, assuming that the business
combination took place at the beginning of the fiscal year ended March 31, 2012
Ordinary income: 12,994 million yen; ordinary profit: 109 million yen; net income: -225 million
yen.
These amounts represent the difference between the actual figures and the estimates of the
figures for ordinary income, ordinary profit and net income calculated based on the assumption
that the business combination was completed at the beginning of the fiscal year ended March 31,
2012. The amount of goodwill amortization was calculated assuming that the goodwill
recognized at the time of the business combination was recognized at the beginning of the fiscal
year ended March 31, 2012.
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2. Subsequent event related to a business combination
On May 15, 2012, through Tokio Marine & Nichido, a subsidiary of the Company, the Company
acquired 100% of the issued shares of Delphi Financial Group, Inc., a U.S. life and property andcasualty insurance group.
(1) Business combination objectives
Tokio Marine Group is: (i) seeking further growth in both the earnings and scale of its overseas
businesses; (ii) creating a more diverse business portfolio; and (iii) establishing new business
opportunities through synergies with Philadelphia Consolidated Holding Corp. and other current
U.S. operations.
(2) Outline of the business combination
a. Name of the acquiree
Delphi Financial Group, Inc.
b. Location
Wilmington, Delaware U.S.A.
c. Business
Insurance group holding company
d. Premium and fee income (for the year ended December 31, 2011)
1,564 million U.S. dollars (equivalent to 128,564 million yen*)
e. Total assets (as of December 31, 2011)
8,634 million U.S. dollars (equivalent to 709,661 million yen*)
(3) Acquisition cost
213,570 million yen
Direct costs of the acquisition are not included in the above since the amount has not been fixed.
(4) Financing of the acquisition cost
Outside loans
(5) Method and process of acquisition
Reverse triangular merger under laws concerning business combination in the U.S.
*Note: U.S. dollars were calculated in Japanese yen based on the exchange rate as at the end of March 2012.
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Subsequent events
1. On April 25, 2012, Tokio Marine & Nichido Fire Insurance Co., Ltd., a subsidiary of theCompany, entered a loan agreement in connection with the acquisition of Delphi Financial Group,
Inc., a U.S. life and property and casualty insurance group, as detailed below.
(1) Lender: The Bank of Tokyo-Mitsubishi UFJ, Ltd.
(2) Loan amount: Approximately 100 billion yen, of which approximately 60 billion yen will come
from the Japan Bank for International Cooperation's U.S. dollar-denominated fund created in
response to yen appreciation.
(3) Repayment date: May 23, 2017
(4) Collateral or guarantee: None
2. At the board of directors meeting on May 18, 2012, the Company resolved to cancel treasury
shares, pursuant to the provisions of Article 178 of the Companies Act.
(1) Class of shares to be canceled: Common shares
(2) Number of shares to be canceled: 35,000,000 shares
(3) Total number of issued shares after cancellation: 769,524,375 shares
(4) Scheduled date of cancellation: June 29, 2012
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4. Others
(1) Summary of Consolidated Business Results for the Fiscal Year Ended March 31, 2012
(Yen in millions, except for %)
Ordinary income and expenses
2,874,082 2,978,100 104,018 3.6 Net premiums written 2,272,117 2,324,492 52,375 2.3
125,301 141,640 16,338 13.0
Life insurance premiums 405,361 344,550 -60,810 -15.0
Reversal of underwriting reserves - 100,727 100,727 -
2,512,937 2,698,374 185,437 7.4
Net claims paid 1,339,724 1,660,040 320,315 23.9
Loss adjustment expenses 93,749 97,130 3,380 3.6
Agency commissions and brokerage 448,444 445,605 -2,839 -0.6
Maturity refunds to policyholders 273,929 256,028 -17,901 -6.5
Life insurance claims 166,253 155,113 -11,140 -6.7
Provision for outstanding claims 176,563 78,014 -98,548 -55.8
Provision for underwriting reserves 7,016 - -7,016 -100.0
347,757 372,910 25,152 7.2
Interest and dividends 219,951 226,291 6,340 2.9
Gains on sales of securities 137,446 139,434 1,987 1.4
105,798 38,197 -67,601 -63.9
Losses on sales of securities 13,694 18,253 4,559 33.3
Impairment losses on securities 24,559 10,172 -14,387 -58.6
534,487 515,563 -18,923 -3.5
54,105 55,598 1,492 2.8
Equity in earnings (losses) of affiliates 2,343 685 -1,657 -70.8
-3,865 -5,850 -1,985 -
126,587 160,324 33,736 26.7
Extraordinary gains and losses
5,360 4,901 -458 -8.5
24,263 11,962 -12,300 -50.7
-18,902 -7,060 11,842 -
107,684 153,263 45,579 42.3
59,752 72,931 13,178 22.1
-25,538 73,935 99,474 -
34,213 146,866 112,652 329.3
73,470 6,397 -67,073 -91.3
1,546 395 -1,150 -74.4
71,924 6,001 -65,922 -91.7
Deposit premiums from policyholders
Income taxes - deferred
Underwriting income
Investment expenses
Operating and general administrative
expenses
Deferred expenses under Article 113 of the
Insurance Business Law
Net income
Ordinary profit
Extraordinary losses
Extraordinary gains and losses
Non-controlling interests
Income before non-controlling interests
Income taxes - current
Total income taxes
Income before income taxes and non-controlling
interests
Extraordinary gains
Rate of change (%)
Other ordinary income and expenses
Year ended
March 31, 2011
Year ended
March 31, 2012
Increase or decrease
by comparison
Underwriting expenses
Investment income
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Direct premiums written including deposit premiums from policyholders (Yen in millions, except for %)
Amounts Amounts
Fire and allied lines 441,311 17.8 -7.6 458,999 17.8 4.0
Hull and cargo 97,508 3.9 2.7 102,571 4.0 5.2
Personal accident 277,128 11.2 -0.7 296,619 11.5 7.0
Voluntary automobile 1,013,141 41.0 0.0 1,028,394 39.9 1.5
Compulsory automobile liability 220,106 8.9 1.1 244,754 9.5 11.2
Others 424,387 17.2 -1.4 443,708 17.2 4.6
Total 2,473,584 100.0 -1.6 2,575,048 100.0 4.1
(Deposit premiums from policyholders) 125,301 5.1 -9.5 141,640 5.5 13.0
Net premiums written (Yen in millions, except for %)
Amounts Amounts
Fire and allied lines 396,089 17.4 -5.9 408,567 17.6 3.2
Hull and cargo 85,509 3.8 2.1 87,504 3.8 2.3
Personal accident 171,497 7.5 0.9 172,846 7.4 0.8
Voluntary automobile 1,013,178 44.6 0.4 1,030,673 44.3 1.7
Compulsory automobile liability 235,226 10.4 2.8 251,298 10.8 6.8
Others 370,616 16.3 -2.6 373,602 16.1 0.8
Total 2,272,117 100.0 -0.9 2,324,492 100.0 2.3
Net claims paid (Yen in millions, except for %)
Amounts Amounts
Fire and allied lines 150,753 11.3 -6.7 462,132 27.8 206.5
Hull and cargo 44,549 3.3 -10.5 48,784 2.9 9.5
Personal accident 90,192 6.7 0.3 88,327 5.3 -2.1
Voluntary automobile 655,722 48.9 2.5 658,728 39.7 0.5
Compulsory automobile liability 234,344 17.5 0.4 234,074 14.1 -0.1
Others 164,163 12.3 -4.1 167,992 10.1 2.3
Total 1,339,724 100.0 -0.4 1,660,040 100.0 23.9
(2) Premiums written and claims paid by lines of insurance
Year ended March 31, 2011 Year ended March 31, 2012
Composition ratio(%)
Rate of change(%)
Composition ratio(%)
Rate of change(%)
Year ended March 31, 2011 Year ended March 31, 2012
Composition ratio
(%)
Rate of change
(%)
Composition ratio
(%)
Rate of change
(%)
Note: Amounts are after elimination of inter-segment transactions.
Year ended March 31, 2011 Year ended March 31, 2012
Composition ratio
(%)
Rate of change
(%)
Composition ratio
(%)
Rate of change
(%)
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(3) Securities
1. Trading Securities (Yen in millions)
As of March 31, 2011
2,475,184 -151,479 2,439,308 -80,050
(Note)
2. Bonds held to maturity (Yen in millions)
Domestic debt
securities938,400 987,243 48,843 1,981,764 2,087,380 105,616
Foreign securities 17,338 17,758 419 17,411 17,982 570
Subtotal 955,739 1,005,002 49,262 1,999,176 2,105,362 106,186
Domestic debt
securities1,061,657 1,009,174 -52,482 280,908 269,587 -11,320
Foreign securities 5,973 5,677 -296 1,947 1,830 -117
Subtotal 1,067,630 1,014,852 -52,778 282,855 271,418 -11,437
Total 2,023,370 2,019,854 -3,516 2,282,032 2,376,781 94,749
3. Bonds earmarked for underwriting reserves (Yen in millions)
Domestic debt
securities 115,358 120,185 4,826 118,109 123,919 5,810
Foreign securities 126,119 132,707 6,587 101,082 109,308 8,226
Subtotal 241,478 252,892 11,413 219,191 233,227 14,036
Domestic debt
securities4,930 4,854 -76 1,283 1,267 -15
Foreign securities 8,805 8,416 -389 1,307 1,276 -30
Subtotal 13,735 13,270 -465 2,590 2,544 -46
Total 255,214 266,162 10,948 221,781 235,771 13,990
As of March 31, 2012
As of March 31, 2011
The amount of negotiable certificates of deposit (carrying amount on the
consolidated balance sheet: 1,525 million yen; valuation differences recognized on
the consolidated statement of income: 0 million yen), which is presented as "Cash
and bank deposits" on the consolidated balance sheet, is included in the table
above.
Those with fair
value exceeding
the carrying
amount
Carrying amount
shown on
balance sheet
Fair value
Type
As of March 31, 2011
As of March 31, 2011
Difference
Carrying amount
shown on
balance sheet
Type
The amount of negotiable certificates of deposit (carrying amount on the
consolidated balance sheet: 8,116 million yen; valuation differences recognized
on the consolidated statement of income: 103 million yen), which is presented as
"Cash and bank deposits" on the consolidated balance sheet, is included in the
table above. The amount of foreign-mortgage securities (carrying amount on the
consolidated balance sheet: 831 million yen; valuation differences recognized on
the consolidated statement of income: 23 million yen), which is presented as
"Monetary receivables bought", is also included.
As of March 31, 2012
As of March 31, 2012
Valuation
differences
recognized on
statement of
income
Carrying amount
shown on
balance sheet
Valuation
differences
recognized on
statement of
income
Trading Securities
Those with fair
value not
exceeding the
carrying amount
Type
Those with fair value exceeding
the carrying
amount
Those with fair
value not
exceeding the
carrying amount
Difference
Carrying amount
shown on
balance sheet
Fair value
Difference
Carrying amount
shown on
balance sheet
Fair value
As of March 31, 2012
Carrying amount
shown on
balance sheet
Fair value Difference
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4. Other securities (available for sale) (Yen in millions)
As of March 31, 2011 As of March 31, 2012
Domestic debt
securities2,957,002 2,869,720 87,282 3,554,207 3,415,792 138,415
Domestic equity
securities1,977,933 754,891 1,223,042 1,730,937 685,965 1,044,971
Foreign securities 770,269 691,434 78,835 868,455 791,206 77,248
Others (Note 2) 132,629 119,370 13,258 132,178 125,096 7,082
Subtotal 5,837,835 4,435,416 1,402,418 6,285,780 5,018,061 1,267,718
Domestic debt
securities811,212 838,390 -27,178 366,535 374,139 -7,604
Domestic equity
securities160,000 182,007 -22,007 125,393 141,650 -16,257
Foreign securities 420,279 452,512 -32,233 322,050 343,242 -21,192
Others (Note 3) 1,034,865 1,039,801 -4,936 787,909 789,847 -1,938
Subtotal 2,426,357 2,512,712 -86,355 1,601,887 1,648,880 -46,992
Total 8,264,192 6,948,129 1,316,063 7,887,668 6,666,942 1,220,725
(Note)
1 1
2 2
3 3
"Others" includes the amount of foreign-mortgage and other securities (carrying
amount on the consolidated balance sheet: 127,311 million yen; cost: 114,860
million yen; difference: 12,451 million yen), which is presented as "Monetary
receivables bought" on the consolidated balance sheet.
"Others" includes the amount of negotiable certificates of deposit (carrying
amount on the consolidated balance sheet: 260 million yen; cost: 257 million
yen; difference: 2 million yen), which is presented as "Cash and bank deposits"
on the consolidated balance sheet and the amount of foreign-mortgage and other
securities (carrying amount on the consolidated balance sheet: 124,572 million
yen; cost: 118,444 million yen; difference: 6,127 million yen), which is
presented as "Monetary receivables bought" on the consolidated balance sheet.
"Others" includes the amount of negotiable certificates of deposit (carrying
amount on the consolidated balance sheet: 74,496 million yen; cost: 74,496
million yen), which is presented as "Cash and bank deposits" in the consolidated
balance sheet and the amount of commercial paper, etc. (carrying amount on the
consolidated balance sheet: 953,358 million yen; cost: 957,489 million yen;
difference: -4,131 million yen), which is presented as "Monetary receivables
bought" on the consolidated balance sheet.
"Others" includes the amount of negotiable certificates of deposit (carrying
amount on the consolidated balance sheet: 44,307 million yen; cost: 44,310
million yen; difference: -2 million yen) which is presented as "Cash and bank
deposits" on the consolidated balance sheet and the amount of commercial
paper, etc. (carrying amount on the consolidated balance sheet: 738,390 million
yen; cost: 739,754 million yen; difference: -1,363 million yen), which is
presented as "Monetary receivables bought" on the consolidated balance sheet.
As of March 31, 2011 As of March 31, 2012
Other securities for which it is difficult to ascertain fair value are not included in
the table above.
Other securities for which it is difficult to ascertain fair value are not included in
the table above.
Those with
carrying amount
not exceeding
the cost
Carrying amount
shown on
balance sheet
Difference
Those with
carrying amountexceeding the
cost
Type Carrying amount
shown on
balance sheet
Cost Difference Cost
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5. Bonds held to maturity that were sold
None.
6. Bonds earmarked for underwriting reserves that were sold (Yen in millions)
Domestic debt
securities4,160 207 0 6,722 366 0
Foreign securities 6,007 - 1,016 8,717 50 1,627
Total 10,167 207 1,016 15,440 416 1,628
7. Other securities (available for sale) that were sold (Yen in millions)
Domestic debt
securities843,203 15,782 5,225 751,000 18,076 5,067
Domestic equity
securities194,972 108,982 2,771 217,504 114,051 5,879
Foreign securities 414,621 11,961 4,097 382,035 6,781 5,612
Others 145,928 6,684 6,630 128,906 8,774 596
Total 1,598,726 143,411 18,724 1,479,446 147,683 17,155
(Note)
8. Securities for which impairment losses were recognized
Year ended March 31, 2012
Impairment losses amounting to 7,701 million yen (domestic debt securities: 249
million yen; domestic equity securities: 5,972 million yen; foreign securities: 1,472
million yen; others: 6 million yen) were recognized for "Other securities (available
for sale)" with fair value, and 2,478 million yen (domestic equity securities: 932
million yen; foreign securities: 481 million yen; others: 1,064 million yen) were
recognized for "Other securities (available for sale)" for which are difficult to
ascertain fair value.
In principle, an impairment loss is recognized if the fair value of a security has
declined by 30% or more compared to its book value as of March 31, 2012.
Year ended March 31, 2011
Impairment losses amounting to 23,085 million yen (domestic equity securities:
20,973 million yen; foreign securities: 2,106 million yen; others: 4 million yen)
were recognized for "Other securities (available for sale)" with fair value, and 1,479
million yen (domestic debt securities: 9 million yen; domestic equity securities: 666
million yen; foreign securities: 186 million yen; others: 616 million yen) were
recognized for "Other securities (available for sale)" for which are difficult to
ascertain fair value.
In principle, an impairment loss is recognized if the fair value of a security has
declined by 30% or more compared to its book value as of March 31, 2011.
Year ended March 31, 2012
"Others" includes the amount of negotiable certificates of deposit (sale proceeds:
35,099 million yen), which is presented as "Cash and bank deposits" and the amount
of foreign-mortgage and other securities (sale proceeds: 88,895 million yen; gains on
sale: 8,671 million yen; losses on sale: 530 million yen), which is presented as
"Monetary receivables bought" on the consolidated balance sheet.
Year ended March 31, 2011
"Others" includes the amount of negotiable certificates of deposit (sale proceeds:
31,719 million yen), which is presented as "Cash and bank deposits" and the
amount of foreign-mortgage and other securities (sale proceeds: 110,550 million
yen; gains on sale: 6,172 million yen; losses on sale: 6,045 million yen), which is
presented as "Monetary receivables bought" on the consolidated balance sheet.
Gains on sale Losses on sale
Type
Year ended March 31, 2011
Type
Gains on sale Losses on saleSale proceeds
Year ended March 31, 2012
Sale proceeds
Year ended March 31, 2011 Year ended March 31, 2012
Gains on saleSale proceeds Losses on sale
Gains on sale Losses on saleSale proceeds
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(4) Information on derivatives
1. Derivatives to which hedge accounting is not applied
(1) Foreign currency-related instruments
(Yen in millions)
As of March 31, 2011 As of March 31, 2012
Over 1 year Over 1 year
Over-the-counter transactions
Foreign exchange forwards
176,344 - -1,706 -1,706 174,253 - -4,154 -4,154
29,882 - -1,031 -1,031 30,452 - -376 -376
4,890 - -94 -94 2,283 - -143 -143
6,724 - -380 -380 7,805 - -512 -512
5,122 - -178 -178 6,306 - -527 -527
- - - - 1,756 - -42 -42
- - - - 421 - -9 -9
- - - - 125 - -0 -0
- - - - 1,613 - 15 15
8,164 - 226 226 33,719 - 691 69113,079 - 583 583 7,085 - 489 489
2,695 - 68 68 13 - 0 0
9,846 - 563 563 3,741 - -5 -5
- - - - 6 - -0 -0
- - - - 6,569 - 154 154
- - - - 1,692 - 19 19
- - - - 19,597 - -224 -224
- - - - 814 - -49 -49
Currency swaps
Pay Foreign/ Rec. Yen
413,478 244,677 13,753 13,753 327,606 255,329 11,194 11,194
3,818 2,481 798 798 30 - 14 14
447 447 17 17 236 236 13 13
Pay Yen/ Rec. Foreign
157,060 116,203 -25,031 -25,031 166,528 144,528 -22,582 -22,582
2,481 2,481 -741 -741 - - - -
434 434 -14 -14 241 241 -11 -11
Pay Foreign/ Rec. Foreign
616 - 60 60 - - - -
Currency options
Short
USD 44,812 31,939 46,639 36,179
4,936 4,120 4,198 738 4,631 3,955 3,311 1,320
USD 49,758 36,078 43,567 35,568
5,022 4,007 7,503 -2,481 4,622 3,949 6,027 -1,405
Long
USD 42,666 29,252 47,857 33,165
3,521 2,567 2,821 -699 3,950 2,961 2,289 -1,661
USD 45,681 30,572 54,074 38,757
3,443 2,588 9,105 5,662 4,035 3,199 9,633 5,597
― ―10,524 -9,884
― ―5,213 -12,196
(Note)
to present values.
2. The fair value of currency options is measured using option-pricing model.
3. For option contracts, option premiums are shown below the respective principal amount.
Type
THB
JPY
THB
USD
EUR
SGD
“Principal amount” as shown in the tables is the nominal contract amount or notional principal amount of derivative transactions.
The amount itself does not represent the market or credit risk of such derivative transactions.
AUD
GBP
Principal
amount
Unrealized
gains or losses
GBP
JPY
CAD
AUD
Call
EUR
Non-deliverable forwards
KRW
AUD
1. The fair value of foreign exchange forwards, non-deliverable forwards and currency swaps is measured by discounting estimated future cash flows
Principal
amountFair value
Unrealized
gains or losses
EUR
Short
USD
Fair value
HKD
SGD
Short
USD
NZD
Total
Long
USD
EUR
Put
Pay USD/ Rec. SGD
Call
Put
AUD
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(2) Interest rate-related instruments
(Yen in millions)
As of March 31, 2011 As of March 31, 2012
Over 1 year Over 1 year
Market transactions
Interest rate futures
Short 15,883 - -4 -4 775 - 0 0
Long 160,000 - 1 1 159,489 - -3 -3Over-the-counter transactions
Interest rate options
Short
37,231 25,000 56,728 53,528
595 434 53 542 511 446 31 479
13,000 12,000 12,000 12,000
445 393 1,182 -736 393 393 1,427 -1,033
Long
4,500 - 4,500 -
36 - 0 -36 36 - 0 -36
16,000 12,000 14,000 10,000
394 285 487 93 394 285 611 217
Interest rate swaps3,227,382 2,450,231 128,951 128,951 2,718,755 2,150,323 150,211 150,211
3,708,935 2,579,326 -111,307 -111,307 3,009,978 2,270,428 -131,827 -131,827
384,298 372,152 3,313 3,313 370,597 362,645 3,206 3,206
43,655 43,655 237 237 43,629 43,629 1,633 1,633
― ―22,913 21,052
― ―25,291 22,846
(Note)
1. The fair value of interest rate futures is based on the closing prices in principal markets.
2. The fair value of interest rate options is measured using option-pricing model.
3. For option contracts, option premiums at the inception are shown below the respective principal amount.
4. The fair value of interest rate swaps is measured by discounting estimated future cash flows at interest rates
at the end of the period or based on the indications obtained from the counterparty financial institution.
Cap
Swaption
Principal
amountFair value
Unrealized
gains or losses
Rec. fix/Pay fix
Total
Rec. fix/Pay float
Swaption
Rec. float/ Pay float
Rec. float/Pay fix
Type
Cap
Unrealized
gains or losses
Principal
amountFair value
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(3) Equity-related instruments
(Yen in millions)
As of March 31, 2011 As of March 31, 2012
Over 1 year Over 1 year
Market transactions
Equity index futures
Short 15,688 - -158 -158 10,768 - -104 -104
Long 2,452 - -1 -1 1,463 - -27 -27
Over-the-counter transactions
Equity index options
Long
Put 17,624 12,982 12,982 9,154
4,260 3,159 7,698 3,438 3,159 2,241 5,654 2,494
― ―7,538 3,278
― ―5,522 2,362
(Note)
1. The fair value of equity index futures is based on the closing prices in principal markets.
2. The fair value of equity index options is based on indications obtained from counterparties.
3. For option contracts, option premiums at the inception are shown below the respective principal amount.
(4) Bond-related instruments(Yen in millions)
As of March 31, 2011 As of March 31, 2012
Over 1 year Over 1 year
Market transactions
Bond futures
Short 11,300 - -52 -52 11,681 - -113 -113
Long - - - - 581 - 0 0
Short
Put - - 7,279 -
- - - - 18 - 3 14
Long
Put - - 7,351 -
- - - - 47 - 26 -21
― ―-52 -52
― ―-82 -119
(Note)
3. For option contracts, option premiums at the inception are shown below the respective principal amount.
Fair valueUnrealized
gains or losses
Principal
amountFair value
Unrealized
gains or losses
Principal
amount
Principal
amount
Unrealized
gains or losses
TypeFair value
Unrealized
gains or losses
Bond futures options
Over-the-counter transactions
2. The fair value of bond futures options is based on indications obtained from counterparties.
1. The fair value of bond futures is based on the closing prices in principal markets.
Principal
amount
Total
TypeFair value
Total
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(5) Credit-related instruments
(Yen in millions)
As of March 31, 2011 As of March 31, 2012
Over 1 year Over 1 year
Over-the-counter transactions
Credit derivatives
Sell protection 199,719 156,491 -8,088 -8,088 58,467 43,129 -3,143 -3,143
Buy protection 35,423 34,923 -59 -59 - - - -
― ―-8,147 -8,147
― ―-3,143 -3,143
(Note)
The fair value of credit derivatives is measured using internal valuation model.
(6) Commodity-related instruments
(Yen in millions)
As of March 31, 2011 As of March 31, 2012
Over 1 year Over 1 year
Over-the-counter transactions
Commodity options
Short
Cap 76 - - -
12 - 2 9 - - - -
Long
Cap 76 - - -
10 - 2 -7 - - - -
Commodity swaps
Rec. fixed price/ Pay commodity indices 15,990 15,533 -6,292 -6,292 11,799 11,575 -4,987 -4,987
Rec. Commodity indices/ Pay fixed price 17,280 16,775 5,368 5,368 12,707 12,459 4,371 4,371
Rec. Commodity indices/ Pay variable indices 6,582 6,170 -416 -416 4,583 4,370 -426 -426
― ―
-1,336 -1,339
― ―
-1,042 -1,042
(Note)1. The fair value of commodity options and commodity swaps is measured using internal valuation model.
2. For option contracts, option premiums at the inception are shown below the respective principal amount.
(7) Others
(Yen in millions)
As of March 31, 2011 As of March 31, 2012
Over 1 year Over 1 year
Over-the-counter transactions
Index basket options
Long 166,478 166,478 264,893 264,893
10,098 10,098 30,488 20,389 14,995 14,995 24,883 9,887
Natural disaster derivatives
Short 12,216 386 13,686 268
869 9 630 239 1,139 4 755 383
Long 28,815 - 31,078 -
3,847 - 2,188 -1,658 4,855 - 3,458 -1,397
Weather derivatives
Short 115 - 88 -
3 - 1 1 2 - 2 -0
Others
Short 123 123 123 123
6 6 6 - 6 6 6 -
― ―33,316 18,972
― ―29,107 8,873
(Note)
Type
Type
Principal
amount
Unrealized
gains or lossesFair value
Type
Principal
amount
Unrealized
gains or losses
Principal
amountFair value
Principal
amountFair value
Unrealized
gains or losses
Fair valueUnrealized
gains or losses
Unrealized
gains or losses
Fair valuePrincipal
amountFair value
5. Option premiums at the inception are shown below the respective principal amount.
Total
Total
Total
1. The fair value of index basket options is based on indications obtained from counterparties.
2. The fair value of natural disaster derivatives is measured using internal valuation models or based on options premiums.
3. The fair value of weather derivatives is measured considering weather conditions, terms of contracts and other components.4. The fair value of others is based on option premiums.
Unrealized
gains or losses
Principal
amount
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2. Derivative transactions to which hedge transaction is applied
(1) Foreign currency-related instruments
(Yen in millions)
Over 1 year Over 1 year
Deferred hedge
- - - 102,911 - 3,914
Currency swaps
Pay Yen/ Rec. Foreign Borrowing
5,000 5,000 -154 5,000 5,000 -114
Fair value hedge
Foreign exchange forwards
Other securities 76,179 - -515 83,228 - -1,330
(available 49,758 - -2,242 29,233 - -601
for sale) 14,220 - -382 - - -
2,586 - -30 2,459 - -119
Currency swaps
Pay Foreign/ Rec. Yen Other securities(available 7,578 7,578 1,758 - - -
for sale) 16,824 16,824 -588 - - -
Foreign exchange forwards
Short
USD 10,000 - (Note 2) 10,002 - (Note 2)
AUD 5,002 - 5,000 -
― ―-2,156
― ―1,749
(Note)
1. The fair value of foreign exchange forwards and currency swaps is measured by discounting estimated future cash flows .
(2) Interest rate-related instruments
(Yen in millions)
Over 1 year Over 1 year
Deferred hedge
Interest rate swaps Insurance liabilities
431,100 405,100 17,751 270,800 253,100 14,786
― ―17,751
― ―14,786
(Note)
Principal amount Fair value
CAD
Hedge items
As of March 31, 2011 As of March 31, 2012
Total
Assignment accounting
Principal amount
The fair value of interest rate swaps is measured by discounting estimated future cash flows at interest rates at the end of the period.
As of March 31, 2011
Hedge items
Bank deposits
As of March 31, 2012
Principal amount Fair valueFair value
Total
GBP
USD
AUD
EUR
Short
USD
Type
Rec. fix/Pay float
USD
Fair value
USD
Forecast
transactions in
foreign currency
2. The fair value of foreign exchange forwards which is integrally accounted with hedged items is included in the fair value of bank deposits.
TypePrincipal amount
Foreign exchange forwards
Long