Investor Presentaiton
Maintain Financial Soundness and
High Credit Ratings
NISSAY
Nippon Life
Insurance Company
We have been accumulating our group capital consistently and we receive top-tier credit ratings from major rating agencies
We will maintain financial soundness and robust capital base under disciplined risk management
Our domestic solvency margin ratio stands out among the domestic peers
Accumulation of Group Capital¹
Credit Ratings (As of Nov 30, 2023)
Subordinated debts
(consolidated)
(\trn)
Foundation funds / Reserve for redemption of foundation funds
Reserves and other items
Global Rating Agency
Domestic Rating Agency
10
S&P
Moody's
R&I
JCR
8.3
8.4
9.0
7.9
8
7.2
6.9
A+
A1
AA
AA+
6
(Stable)
(Stable)
(Positive)
(Stable)
+
2
0
Mar-2019 Mar-2020 Mar-2021 Mar-2022 Mar-2023 Mar-2024
(Reference) JGB
A+
A1
(Stable)
(Stable)
AA+
(Stable)
AAA
(Stable)
Group Solvency Margin Ratio
ESR2
(consolidated)
1,120.3%
1,047.5%
1,075.0%
1,073.2%
997.3%
1,034.9%
(based on internal models)
244%
240%
Regulatory requirement 200%
Mar-2019
Mar-2020
Mar-2021
Mar-2022
Mar-2023
Sep-2023
Mar-2023
Sep-2023
Source: Company disclosure
1.
2.
Capital is the sum of foundation funds ("kikin"), reserves and other items (foundation funds and the reserve for redemption of foundation funds, which are included in the balance sheets in the net
assets section, with the contingency reserve and reserve for price fluctuations included in the liabilities section) and subordinated debt
Group basis. Economic value-based solvency ratios measure the solvency of an insurance company based on the economic value of its assets and liabilities and can be valuable in assessing an
insurance company's specific risk profile. We refer to our internal economic value-based solvency ratio as ESR. ESR is a solvency indicator valuing assets and liabilities based on a fair value (mark-
to market) basis. Indicates economic capital relative to the risk amount under a certain stress scenario. We have developed an internal model used to calculate ESR on a voluntary basis to monitor
our financial soundness and to supplement our solvency margin ratio, which is prepared in accordance with Japanese regulations. Solvency margin ratio is not calculated based on economic value of
the business of life insurance companies, which are characterized by the fact that most of the policies written are long-term contracts. Our current ESR framework may differ materially from any
economic value-based solvency framework that may be formally implemented in Japan in the future, and we may revise our ESR framework in response to future regulatory changes
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