the toa reinsurance company, limited and subsidiaries … · 2018-06-13 · the toa reinsurance...

The Toa Reinsurance Company, Limited and Subsidiaries

Consolidated Financial Statements

For the years ended 31st March 2013 and 2012

The Toa Reinsurance Company, Limited and Subsidiaries Consolidated Balance Sheets

As of 31st March 2013 and 2012

The accompanying notes are an integral part of the statements.

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Millions of yen Thousands of

U.S. dollars(Note 1(2))

2013 2012 2013 Assets Cash and deposits ¥ 11,063 ¥ 10,406 $ 117,628Money held in trust 4,674 6,109 49,696Securities (Notes 4 (2) and (4)) 478,058 465,874 5,083,019Loans (Note 4 (3)) 1,199 1,199 12,748Tangible fixed assets (Notes 4 (1))

Land 6,686 6,668 71,089Buildings 3,721 3,940 39,564Leased assets 110 133 1,169Other tangible fixed assets 135 149 1,435

10,654 10,891 113,280Intangible fixed assets Other intangible fixed assets 1 2 10 1 2 10Other assets (including Foreign reinsurance accounts receivable amounting to ¥35,196 million (US$374,226 thousand) and ¥26,930 million for 2013 and 2012, respectively)

53,173 44,086 565,369

Deferred tax assets 39,860 50,398 423,817Less: Allowance for doubtful accounts (365) (473) (3,880) Total assets ¥ 598,319 ¥ 588,494 $ 6,361,711

The Toa Reinsurance Company, Limited and Subsidiaries Consolidated Balance Sheets, continued

As of 31st March 2013 and 2012


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U.S. dollars(Note 1(2))

2013 2012 2013 Liabilities Underwriting funds Outstanding claims ¥ 240,288 ¥ 264,295 $ 2,554,896 Underwriting reserves 161,283 167,536 1,714,864 401,571 431,832 4,269,760 Corporate bonds 30,000 30,000 318,979 Other liabilities 28,751 21,570 305,699 Accrued retirement benefits for employees 4,824 3,743 51,291 Accrued retirement benefits for directors 399 487 4,242

Reserve under the special law Reserve for price fluctuations 7,568 7,336 80,467

7,568 7,336 80,467 Deferred tax liabilities 150 - 1,594 Total liabilities ¥ 473,266 ¥ 494,970 $ 5,032,068Net assets Shareholders’ equity Capital stock ¥ 5,000 ¥ 5,000 $ 53,163 Capital surplus 0 0 0 Retained earnings 95,020 88,065 1,010,313 Treasury stock (5,599) (5,737) (59,532) 94,421 87,327 1,003,944Accumulated other comprehensive income

Net unrealized gains on available-for-sale securities, net of tax

46,738 31,171 496,948

Net foreign currency translation adjustments (16,106) (24,975) (171,249) 30,631 6,195 325,688

Total net assets ¥ 125,052 ¥ 93,523 $ 1,329,633Total liabilities and net assets ¥ 598,319 ¥ 588,494 $ 6,361,711

The Toa Reinsurance Company, Limited and Subsidiaries Consolidated Statements of Income



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Operating and general administrative expenses (Note 5 (1)) 10,160 9,359 108,027 Other ordinary expenses Interest expenses 1,601 44 17,022 Provision for allowance for doubtful accounts 42 106 446 Loss on bad debts 4 - 42 Other expenses 9 19 95 1,657 171 17,618 220,953 279,181 2,349,314 Ordinary profit (loss) ¥ 13,111 ¥ (7,664) $ 139,404

Millions of yen

Thousands ofU.S. dollars(Note 1(2))

2013 2012 2013 Ordinary Income and Expenses: Ordinary income Underwriting income Net premiums written ¥ 171,489 ¥ 161,363 $ 1,823,381 Investment income on deposit premiums 205 325 2,179 Reversal of outstanding claims 31,957 - 339,787 Reversal of underwriting reserves 7,431 68,671 79,011 Other underwriting income 1,156 - 12,291 212,240 230,360 2,256,671 Investment income Interest and dividends income 10,349 11,409 110,037 Gain on money held in trust 484 7 5,146 Gain on sales of securities 9,971 29,441 106,018 Gain on redemption of securities 318 369 3,381 Other investment income 697 0 7,410 Transfer of investment income on deposit

premiums (205) (325) (2,179)

21,615 40,901 229,824 Other ordinary income 208 254 2,211 234,064 271,516 2,488,718 Ordinary expenses Underwriting expenses Net claims paid 168,204 150,699 1,788,452 Commissions and brokerage (Note 5 (1)) 37,567 37,139 399,436 Provision for outstanding claims - 73,766 - Other underwriting expenses 5 278 53 205,777 261,884 2,187,953 Investment expenses Loss on money held in trust 67 114 712 Loss on sales of securities 2,420 6,786 25,730 Impairment losses on securities 721 291 7,666 Loss on redemption of securities 121 234 1,286 Loss on derivatives 2 - 21 Other investment expenses 25 338 265 3,357 7,765 35,693

The Toa Reinsurance Company, Limited and Subsidiaries Consolidated Statements of Income, continued For the years ended 31st March 2013 and 2012


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Millions of yen


2013 2012 2013 Extraordinary Income and Loss: Extraordinary income

Gain on disposal of fixed assets ¥ 0 ¥ 248 $ 0 0 248 0

Extraordinary loss Loss on disposal of fixed assets 0 6 0

Impairment losses on fixed assets (Note 5 (2)) - 3 - Provision for reserve under the special law Provision for reserve for price fluctuations 232 245 2,466 232 256 2,466 Income (loss) before income taxes 12,878 (7,672) 136,927 Income Taxes:

Current 1,281 1,717 13,620 Refund - (433) - Deferred 3,999 9,311 42,519

5,281 10,595 56,150 Income (loss) before minority interests 7,597 (18,268) 80,776 Net income (loss) ¥ 7,597 ¥ (18,268) $ 80,776

The Toa Reinsurance Company, Limited and Subsidiaries Consolidated Statements of Comprehensive Income

For the year ended 31st March 2013 and 2012


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Millions of yen


2013 2012 2013 Comprehensive Income

Income (loss) before minority interests ¥ 7,597 ¥ (18,268) $ 80,776 Other comprehensive income

Net unrealized gains on available-for-sale securities, net of tax

15,566 (10,128) 165,507

Net foreign currency translation adjustments 8,869 (3,584) 94,300Total other comprehensive income (Note 6 (1))

24,436 (13,712) 259,819

¥ 32,033 ¥ (31,981) $ 340,595(Breakdown)

Comprehensive income attributable to owners of the parent

32,033 (31,981) 340,595

Comprehensive income attributable to minority interests

- - -

The Toa Reinsurance Company, Limited and Subsidiaries Consolidated Statements of Changes in Shareholders’ Equity



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Millions of yen


2013 2012 2013 Shareholders’ equity

Capital stock Balance at the beginning of the period ¥ 5,000 ¥ 5,000 $ 53,163Changes during the period

Total changes during the period - - -Balance at the end of the period 5,000 5,000 53,163

Capital surplus Balance at the beginning of the period 0 0 0Changes during the period

Disposal of treasury stock (7) - (74)Transfer of loss on disposal of treasury stock 7 - 74Total changes during the period - - -

Balance at the end of the period 0 0 0Retained earnings

Balance at the beginning of the period 88,065 106,967 936,363Changes during the period

Dividends from retained earnings (633) (633) (6,730)Net income (loss) for the period 7,597 (18,268) 80,776Transfer of loss on disposal of treasury stock (7) - (74)Total changes during the period 6,955 (18,902) 73,950

Balance at the end of the period 95,020 88,065 1,010,313Treasury stock

Balance at the beginning of the period (5,737) (5,737) (60,999)Changes during the period

Disposal of treasury stock 137 - 1,456Total changes during the period 137 - 1,456

Balance at the end of the period (5,599) (5,737) (59,532)Total shareholders’ equity

Balance at the beginning of the period 87,327 106,230 928,516Changes during the period

Dividends from retained earnings (633) (633) (6,730)Net income (loss) for the period 7,597 (18,268) 80,776Disposal of treasury stock 130 - 1,382Total changes during the period 7,093 (18,902) 75,417

Balance at the end of the period 94,421 87,327 1,003,944

The Toa Reinsurance Company, Limited and Subsidiaries Consolidated Statements of Changes in Shareholders’ Equity, continued


The accompanying notes are an integral part of the statements. 7

Millions of yen


2013 2012 2013 Accumulated other comprehensive income

Net unrealized gains on available-for-sale securities, net of taxes

Balance at the beginning of the period ¥ 31,171 ¥ 41,300 $ 331,430Changes during the period

Net changes in items other than shareholders’equity

15,566 (10,128) 165,507

Total changes during the period 15,566 (10,128) 165,507Balance at the end of the period 46,738 31,171 496,948

Net foreign currency translation adjustments Balance at the beginning of the period (24,975) (21,391) (265,550)Changes during the period


8,869 (3,584) 94,300

Total changes during the period 8,869 (3,584) 94,300Balance at the end of the period (16,106) (24,975) (171,249)

Total accumulated other comprehensive income Balance at the beginning of the period 6,195 19,908 65,869Changes during the period


24,436 (13,712) 259,819

Total changes during the period 24,436 (13,712) 259,819Balance at the end of the period 30,631 6,195 325,688

Total net assets Balance at the beginning of the period 93,523 126,138 994,396Changes during the period

Dividends from retained earnings (633) (633) (6,730)Net income (loss) for the period 7,597 (18,268) 80,776Disposal of treasury stock 130 - 1,382Net changes in items other than shareholders’

equity 24,436 (13,712) 259,819

Total changes during the period 31,529 (32,615) 335,236Balance at the end of the period 125,052 93,523 1,329,633

The Toa Reinsurance Company, Limited and Subsidiaries Consolidated Statements of Cash Flows


Millions of yen


2013 2012 2013 Cash flows from operating activities Income (loss) before income taxes ¥ 12,878 ¥ (7,672) $ 136,927 Depreciation and amortization 345 357 3,668

Impairment losses on fixed assets - 3 - Increase (decrease) in outstanding claims (31,957) 73,766 (339,787) Increase (decrease) in underwriting reserves (7,431) (68,671) (79,011) Increase (decrease) in allowance for doubtful accounts 42 106 446

Increase (decrease) in accrued retirement benefits for employees 963 103 10,239 Increase (decrease) in accrued retirement benefits for directors (88) 18 (935)

Increase (decrease) in accrued bonuses to employees (4) (21) (42) Increase (decrease) in reserve for price fluctuations 232 245 2,466 Interest and dividends income (10,349) (11,409) (110,037) Loss (gain) on securities (7,044) (22,436) (74,896) Interest expenses 1,601 44 17,022 Foreign exchange loss (gain) (534) 33 (5,677) Loss (gain) on tangible fixed assets 0 (241) 0 Loss (gain) on money held in trust (416) 107 (4,423) Decrease (increase) in other assets (other than investing and financing activities)

(6,755) 10,945 (71,823)

Increase (decrease) in other liabilities (other than investing and financing activities)

4,185 10,641 44,497

Others, net 7 22 74 Subtotal (44,324) (14,053) (471,281) Interest and dividends received 11,653 12,234 123,902 Interest paid (530) (0) (5,635) Income taxes paid (2,172) (2,635) (23,094) Income taxes refund 869 2,787 9,239 Net cash provided by (used in) operating activities (34,504) (1,668) (366,868) Cash flows from investing activities Net decrease (increase) in deposits (42) - (446) Increase in money held in trust - (8,000) - Decrease in money held in trust 1,850 5,992 19,670 Purchases of securities (256,039) (240,151) (2,722,371) Proceeds from sales or redemption of securities 278,070 235,962 2,956,618

Loans made (30) (28) (318) Proceeds from collection of loans 29 62 308

Total of net cash provided by (used in) investment transactions

23,838 (6,162) 253,460

Total of net cash provided by (used in) operating activities and investment transactions

(10,666) (7,830) (113,407)

Purchase of tangible fixed assets (50) (178) (531) Proceeds from sales of tangible fixed assets 0 397 0 Net cash provided by (used in) investing activities 23,788 (5,943) 252,929


The Toa Reinsurance Company, Limited and Subsidiaries Consolidated Statements of Cash Flows, continued


Millions of yen Thousands ofU.S. dollars(Note 1(2))

2013 2012 2013 Cash flows from financing activities

Proceeds from issuance of corporate bonds ¥ - ¥ 30,000 $ - Dividends paid (633) (633) (6,730)Repayment for lease liabilities (48) (49) (510)Proceeds from disposal of treasury stock 130 - 1,382

Net cash provided by (used in) financing activities (552) 29,316 (5,869)Effect of exchange rate changes on cash and cash equivalents 1,409 (280) 14,981 Net increase (decrease) in cash and cash equivalents (9,859) 21,424 (104,827)Cash and cash equivalents at the beginning of the period 26,443 5,018 281,158 Cash and cash equivalents at the end of the period(Note 8 (1)) ¥ 16,583 ¥ 26,443 $ 176,321



Notes to the Consolidated Financial Statements 1. Basis of Presenting the Consolidated Financial Statements

(1) The accompanying consolidated financial statements of The Toa Reinsurance

Company, Limited (the "Company") and its subsidiaries (collectively, the "Companies") are prepared on the basis of accounting principles generally accepted in Japan, which are different in certain respects as to both application and disclosure requirements of International Financial Reporting Standards, and are compiled from the consolidated financial statements prepared by the Company as required by the Financial Instruments and Exchange Act of Japan. The consolidated financial statements are not intended to present the consolidated financial position, results of operations and cash flows in accordance with accounting principles and practices generally accepted in countries and jurisdictions other than Japan. The accompanying consolidated financial statements incorporate certain reclassifications and rearrangements in order to present them in a form that is more familiar to readers outside Japan.

(2) Amounts in U.S. dollars are included solely for the convenience of readers outside

Japan. The rate of ¥94.05=US$1, the rate of exchange on 31st March 2013, has been used in translation. The inclusion of such amounts is not intended to imply that Japanese yen has been or could be readily converted, realized or settled in U.S. dollars at this rate or any other rate.

(3) Fractional amounts of less than ¥1 million or $1 thousand have been rounded down.

Accordingly, the totals in yen and US dollars do not necessarily agree with the sum of the individual amounts.

2. Principal Matters for Preparation of Consolidated Financial Statements

(1) Scope of Consolidation

A. Of the Company’s subsidiaries, two subsidiaries are consolidated. The names of the consolidated subsidiaries are as follows:

The Toa Reinsurance Co. of America The Toa 21st Century Reinsurance Co., Ltd.

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B. Non-consolidated Subsidiary

The other subsidiary is a small-scale operation, in terms of total assets, ordinary profit (loss), net income (loss) for the year and retained earnings, and is excluded from the scope of consolidation, due to its insignificant effect on the consolidated financial statements of the Company. <Name of non-consolidated subsidiary>

Sundai Company, Limited.

(2) Application of the Equity Method

The effect exerted by the non-consolidated subsidiary on the net income (loss) for the year and the retained earnings is negligible and, accordingly, this company is not accounted for by the equity-method.

(3) Fiscal Years of Consolidated Subsidiaries

The fiscal year ends of both consolidated subsidiaries are 31st December. Since the differences in the fiscal year ends do not exceed three months, financial statements as of the fiscal year end of each subsidiary are used in preparing the consolidated financial statements. As for significant transactions occurring between that date and the date of the Company’s fiscal year end, necessary adjustments are made upon consolidation.

(4) Basis of Accounting Principles

A. Financial Instruments

(a) Stocks of Non-consolidated Subsidiaries not Accounted for by the Equity-Method

Stocks of non-consolidated subsidiaries not accounted for by the equity-method are recorded at cost determined by the moving-average method.

(b) Securities

Available-for-sale securities with fair value are carried at fair value based on the prices prevailing in the market on the balance sheet date. Unrealized gains or losses, net of tax are included in a separate component of net assets. Cost of sales is calculated using cost determined by the moving-average method. Available-for-sale securities extremely difficult to measure fair value are recorded at cost or amortized cost determined by the moving-average method.

(c) Money Held in Trust

Securities included in money held in trust are carried at fair value.

(d) Derivatives

Derivatives are carried at fair value with changes in fair value.

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B. Depreciation Method for Fixed Assets

(a) Tangible Fixed Assets (Except for Leased Assets)

Depreciation of tangible fixed assets (except for leased assets) held by the Company is calculated by the declining balance method based on estimated useful lives. However, the depreciation of buildings, except for their attached facilities, acquired on or subsequent to 1st April 1998, is calculated by the straight-line method. Depreciation of property and equipment held by consolidated subsidiaries is calculated by the straight-line method based on estimated useful lives.

(Changes in Accounting Policies which are Difficult to Distinguish from Changes in Accounting Estimates) The Company, accompanying the revisions in the Corporation Tax Act of Japan, has changed the depreciation method based on the revised Corporation Tax Act for tangible fixed assets acquired on or after 1st April 2012. The effect of these changes to ordinary profit and income before income taxes for the fiscal year ended 31st March 2013 is immaterial.

(b) Leased Assets Depreciation of leased assets shown as a breakdown of the tangible fixed assets is calculated by the straight-line method over a period up to the length of the relevant lease contracts with no residual value.

C. Accounting Policies for Major Reserves

(a) Allowance for Doubtful Accounts

The Company books an allowance for doubtful accounts, in accordance with the standard for self-assessment of assets and rules for write-offs and provisions, as follows:

(i) For debts of debtors who are legally bankrupt (due to bankruptcy, special

liquidation or suspension of service at clearing houses, etc.) or virtually bankrupt, a reserve is provided based on the amount that remains after anticipated proceeds from the disposal of collateral and the recovery of debt through guarantees are deducted from the debt balances.

(ii) For debts of debtors who are likely to become bankrupt, a reserve is provided

based on the amount considered to be necessary to cover the amount that remains after anticipated proceeds from the disposal of collateral and the recovery of debt through guarantees are deducted from the debt balances. This reserve amount is based on an overall judgment regarding the solvency status of each debtor.

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(iii) For debts other than those described above, a reserve is provided for an amount determined by multiplying debt balances by the default rate, which is computed based on historical loan loss experience in certain previous period.

All debts are assessed by each asset management department of the Company in accordance with the standard for asset self-assessment. The allowance for doubtful accounts mentioned above is computed based on the result of this assessment. These results are audited by the Internal Audit Department which is independent from each department.

(b) Accrued Retirement Benefits for Employees

Accrued retirement benefits for employees are provided based on projected benefit obligations and plan assets. The Company fully amortizes prior service costs in the fiscal year. The consolidated subsidiaries amortize prior service costs using the straight-line method over the average remaining service period of employees at the time of occurrence. The Company fully amortizes actuarial differences in the following fiscal year.

(c) Accrued Retirement Benefits for Directors

Accrued retirement benefits for directors are provided on the basis of the estimated amounts to be paid, based on internally established rules.

(d) Reserve under the Special Law (Reserve for Price Fluctuations)

The Company books a reserve for price fluctuations in accordance with Article 115 of the Insurance Business Law to provide for contingent losses caused by price fluctuations on stocks and other investments.

D. Consumption Tax Accounting Treatment

Consumption tax is accounted for separately from the transactions subject to such tax. However, the consumption tax on certain expenses, such as operating and general administrative expenses, is included in those expenses. Non-deductible consumption tax on the purchase of assets is included in “Other assets” and amortized evenly over a period of five years.

E. Hedge Accounting

With regard to forward foreign exchange contracts utilized to hedge future foreign exchange risk associated with financial assets and liabilities denominated in foreign currencies, the Company applies the allocation method. As the forward foreign exchange contract meets the required condition to apply the allocation method, the Company omits the hedge accounting effectiveness testing. The allocation method requires foreign currency assets and liabilities to be recorded using the corresponding foreign exchange contract rates.

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F. Cash and Cash Equivalents Cash and cash equivalents in the consolidated statements of cash flows comprise cash on hand, deposits able to be withdrawn on demand and short-term investments with original maturities of three months or less and which have minimal risk of fluctuations in value.

3. Accounting Standards Issued But Not Yet Applied

“Accounting Standard for Retirement Benefits” (Accounting Standards Board of Japan Statement No.26, issued on 17th May 2012) and “Guidance on Accounting Standard for Retirement Benefits” (Accounting Standards Board of Japan Guidance No.25, issued on 17th May 2012)

(1) Overview

Taking into improvements to financial reporting and international trends, revisions apply mainly to the accounting treatments for unrecognized actuarial gains and losses as well as unrecognized prior service costs, broadening disclosure, and the calculation methods for retirement benefit obligations as well as service costs.

(2) Scheduled Effective Date

The revised Accounting Standard and Guidance are scheduled to take effect from the end of the fiscal year that commences after 1st April 2013. However, the revisions to the calculation methods for retirement benefit obligations and service costs are scheduled to take effect from the beginning of the fiscal year that commences after 1st April 2014.

(3) The Impact of the Adoption of the Revised Accounting Standard and Guidance

The impact of the adoption of the revised accounting standard and guidance on consolidated financial statements is currently under evaluation.

4. Notes to the Consolidated Balance Sheets

(1) The amounts of accumulated depreciation and advanced depreciation of tangible fixed

assets are as follows:

Millions of yen

Thousands ofU.S. dollars (Note 1(2))

2013 2012 2013 Accumulated depreciation ¥ 8,058 ¥ 7,587 $ 85,677 Advanced depreciation 29 29 308

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(2) The carrying amounts of equity investments in non-consolidated subsidiaries are as follows:


U.S. dollars (Note 1(2))

2013 2012 2013 Securities ¥ 10 ¥ 10 $ 106

(3) Impaired Loans

There is no balance of impaired loans, including loans to borrowers under bankruptcy proceedings, overdue loans, loans past due for three months or more and loans with altered lending conditions, as of 31st March 2013 and 2012. The definitions of impaired loans are as follows:

A. “Loans to borrowers under bankruptcy proceedings” are non-accrual loans

(excluding loans written off) for which circumstances apply as stated in Article 96-1-3 or Article 96-1-4 of the Implementation Ordinances for the Corporation Tax Law (Government Ordinance No. 97, 1965) which have no prospects for recovery or repayment of principal or interest, or for which payment of principal or interest has not been received for a substantial period, or for other reasons.

B. “Overdue loans” are those loans on which accrued interest income has not been

recognized, excluding loans to borrowers under bankruptcy proceedings and excluding loans for which interest payments have been rescheduled with the objective of assisting these borrowers in management restructuring.

C. “Loans past due for three months or more” are those loans for which payments of

principal or interest has not been received for a period of three months or more, beginning with the next day following the last due date for such payments, and are not included in loans to borrowers under bankruptcy proceedings or non-accrual past due loans.

D. “Loans with altered lending conditions” are those loans for which the Company

has provided more favorable terms and conditions than those contained in the original loan agreement (including reducing interest rates, rescheduling interest and principal payments, or the waiving of claims on the borrowers) to the borrowers with the aim of providing restructuring assistance and support. Such loans exclude loans to borrowers under bankruptcy proceedings, non-accrual past due loans and loans past due for three months or more.

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(4) The carrying amounts of assets pledged as collateral are as follows:

Millions of yen


2013 2012 2013 Securities ¥ 25,957 ¥ 5,184 $ 275,991

These securities are pledged to deposit for overseas operations and to establish letters of credit.

5. Notes to the Consolidated Statements of Income (1) The significant component of business expenses are as follows:



2013 2012 2013 Commissions, net of reinsurance ¥ 37,567 ¥ 37,139 $ 399,436

Business expenses are the total of “Operating and general administrative expenses” and “Commissions and brokerage” in the consolidated statements of income.

(2) Impairment losses are recognized for the following assets:

As for the year ended 31st March 2013

None

As for the year ended 31st March 2012 (Millions of yen)

Purpose of use Category Location Impairment losses

Real estate for sale Land Tokyo 3

Properties used for reinsurance operations are grouped by each business unit (the head office and each overseas branch). Investment properties owned by the Company are grouped individually. Carrying amount of the above mentioned asset was reduced to its recoverable value due to decline in real estate price and the resulting decrease in the carrying amount was recognized as impairment losses in the amount of 3 million yen in the extraordinary losses. The recoverable value of the asset concerned is determined at the net realizable value on sale which is the fair value less the costs to sell.

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6. Notes to the Consolidated Statements of Comprehensive Income (1) Reclassification Adjustments and Income Tax Effects of Other Comprehensive Income



2013 2012 2013 Net unrealized gains (losses) on available-for-sale securities, net of tax:

Gains (losses) arising during the period ¥ 29,659 ¥ 3,367 $ 315,353 Reclassification adjustments (7,069) (22,679) (75,162)

Before income tax effect adjustments 22,590 (19,311) 240,191 Income tax effects (7,024) 9,183 (74,683)Net unrealized gains (losses) on available-for-sale securities, net of tax

15,566 (10,128) 165,507

Net foreign currency translation adjustments: Gains (losses) arising during the period ¥ 8,932 ¥ (3,827) $ 94,970 Before income tax effect adjustments 8,932 (3,827) 94,970 Income tax effects (62) 243 (659)Net foreign currency translation adjustments 8,869 (3,584) 94,300

Total other comprehensive income ¥ 24,436 ¥ (13,712) $ 259,819 7. Notes to the Consolidated Statements of Changes in Shareholders’ Equity For the year ended 31st March 2013

(1) Detailed Information for Outstanding Shares and Treasury Stock (Thousand shares)

Number of shares as of 1st April 2012

Number of shares increased during the period

Number of shares decreased during the period

Number of shares as of 31st March 2013

Outstanding shares Common stock 100,000 - - 100,000Total 100,000 - - 100,000

Treasury stock Common stock 9,458 - 227 9,231Total 9,458 - 227 9,231

The number of shares decreased during the period in common treasury stock is 227 thousand shares, as a result of transfer by third party allotment.

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(2) Detailed Information for Cash Dividends

Dividends paid Type of

shares Total dividends (*Millions of Yen) (**Thousands of U.S. dollars (Note 1(2)))

Dividend per share (*Yen) (**U.S. dollar (Note 1(2)))

Dividend record date

Effective date

General meeting of shareholders on 28th June 2012

Common stock

¥ 633* $6,730**

¥7* $0.07**

31st March 2012

29th June 2012

Of dividends with record date within the fiscal year ended 31st March 2013, dividends with the effective date after 31st March 2013 Type of

shares Total dividends (*Millions of Yen) (**Thousands of U.S. dollars (Note 1(2)))

Source of dividends

Dividend per share (*Yen) (**U.S. dollar (Note1(2)))


Effective date


Common stock

¥ 635* $6,751**

Retained earnings

¥7* $0.07**

31st March 2013

28th June 2013

For the year ended 31st March 2012 (1) Detailed Information for Outstanding Shares and Treasury Stock

(Thousand shares) Number of

shares as of 1st April 2011

Number of shares increased during the period

Number of shares decreased during the period

Number of shares as of 31st March 2012

Outstanding shares Common stock 100,000 - - 100,000Total 100,000 - - 100,000

Treasury stock Common stock 9,458 - - 9,458Total 9,458 - - 9,458

(2) Detailed Information for Cash Dividends

Dividends paid Type of

shares Total dividends (Millions of Yen)

Dividend per share (Yen)


Effective date


Common stock

¥ 633 ¥7 31st March

2011 29th June

2011

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Of dividends with record date within the fiscal year ended 31st March 2012, dividends with the effective date after 31st March 2012 Type of

shares Total dividends (Millions of Yen)

Source of dividends

Dividend per share (Yen)


Effective date


Common stock

¥ 633 Retained earnings

¥7 31st

March 2012

29th June 2012

8. Notes to the Consolidated Statements of Cash Flows

(1) Reconciliation of the balance of cash and cash equivalents at the end of the period with the itemized amounts shown in the consolidated balance sheets are as follows:



2013 2012 2013 Cash and deposits ¥ 11,063 ¥ 10,406 $ 117,628 Securities 478,058 465,874 5,083,019 Time deposits with original maturities of more than three months

(42) - (446)

Securities other than cash equivalents (472,496) (449,837) (5,023,880)Cash and cash equivalents ¥ 16,583 ¥ 26,443 $ 176,321

(2) Cash flows from investing activities include those related to insurance business.

9. Leases Future lease payments due under non-cancelable operating leases are as follows:



2013 2012 2013 Within one year ¥ 7 ¥ 8 $ 74Over one year 7 4 74

Total ¥ 15 ¥ 12 $ 159 10. Financial Instruments (1) Overview of Financial Instruments A. Policy for Financial Instruments

The Company underwrites non-life reinsurance（such as Fire, Marine, Motor, General liabilities reinsurance ） and life reinsurance. The Company invests in financial

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instruments paying attention to adequate safety, liquidity and profitability, as a funding source of the reinsurance claims to be paid securely and promptly. The Company maintains Enterprise Risk Management system to control investment risk, to keep adequate solvency in case of the risk occurrence. Additionally, in order to further strengthen financial foundation, the Company substantially enhanced capital adequacy by issuing subordinated notes with an established equity content level recognized by major rating companies.

B. Types of Financial Instruments and Related Risk

The Company holds financial instruments mainly for the purpose of investment and business cooperation. Main components of the instruments are bonds, stocks and investment trust funds, which are exposed to price risk due to market fluctuations（interest rate, foreign exchange rate and stock price）, and credit risk of the issuers. Derivatives utilized by the Company are forward foreign exchange contracts. Forward foreign exchange contracts are utilized for hedging fluctuations risk in future foreign exchange rates, regarding to redemptions and interests arising from foreign bonds. Derivatives are only taken out with counterparties or referenced entities with a suitable credit rating. Loans are exposed to credit risk due to breach of contracts. Subordinated notes issued by the Company are exposed to market risk due to interest-rate fluctuations.

C. Risk Management for Financial Instruments

The board of directors establishes risk management policies and internal rules for investment, and defines risk management methodologies, process and which department to be responsible for risk managements. The department in charge performs the risk managements in accordance with the policies and the rules, and condition of the risk is reported to the board regularly or properly, to enable the board to recognize the actual condition of the risk. Foreign subsidiaries establish investment policies and manage the risk in accordance with the policies, and hold investment committee and other meetings regularly to discuss condition of risk management and future investment policies. The third party investment management arrangements are made in accordance with the investment guidelines and compliance with the guidelines is monitored. Internal audit department performs internal audit under internal audit plan regarding to condition of risk management mentioned above.

(a) Market risk management

(i) Interest rate fluctuations risk management The department in charge analyzes risk amount by “Value at Risk” (hereafter VaR), sensitivity analysis for interest rate and other methods. Compliance with the rules is monitored and reported to the board regularly.

(ii) Foreign exchange risk management The department in charge analyzes risk amount by VaR of foreign bonds, sensitive analysis and other methods. Compliance with the rules is monitored, and foreign exchange risk (offsetting foreign currency assets and liabilities) is recognized by the department in charge of integrated risk management, and reported to the board regularly.

20

(iii)Price fluctuations risk management

The department in charge analyzes risk amount by VaR, sensitive analysis for market and other methods. Compliance with the rules is monitored and reported to the board regularly.

(b) Credit risk management

With respect to credit risk of bond issuer and the referenced entities’ credit in credit derivatives, the department in charge regularly recognizes market conditions, financial condition, credit information and fair value. For loans, the department in charge performs credit management by extending credit assessment, determining when to obtain collateral and guarantees, on individual debtor basis. Compliance with the rules is reported to the board regularly.

(c) Liquidity risk management

The Company performs appropriate fund management, and management for liquidity risk by holding assets with adequate liquidity, and obtaining committed lines of credit from several financial institutions. Liquidity risk is monitored by the department in charge, and reported to the board regularly.

D. Supplementary Explanation for the Fair Value of Financial Instruments.

The fair value of financial instruments includes market price and price measured reasonably by the Company if market price is not available. Measurement for price of financial instruments depends on certain assumptions, the use of different assumptions could result in a different price.

(2) Fair Value of Financial Instruments The amount on consolidated balance sheet, fair value and unrealized gain (loss) of financial instruments as of 31st March 2013 and 2012 are as follows. Financial instruments extremely difficult to measure fair value are not included in the table. Also please see note (b) below.

As of 31st March 2013 Millions of yen Amount on

consolidated balance sheet

Fair value Unrealized gain (loss)

Cash and deposits ¥ 11,063 ¥ 11,063 ¥ - Securities

Available for sale 477,247 477,247 -Total assets ¥ 488,310 ¥ 488,310 ¥ -

Corporate bonds ¥ 30,000 ¥ 30,224 ¥ 224

Total liabilities ¥ 30,000 ¥ 30,224 ¥ 224

21

Thousands of U.S. dollars (Note 1(2)) Amount on



Cash and deposits $ 117,628 $ 117,628 $ - Securities

Available for sale 5,074,396 5,074,396 -Total assets $ 5,192,025 $ 5,192,025 $ -

Corporate bonds $ 318,979 $ 321,360 $ 2,381

Total liabilities $ 318,979 $ 321,360 $ 2,381

As of 31st March 2012 Millions of yen Amount on



Cash and deposits ¥ 10,406 ¥ 10,406 ¥ -Money held in trust 6,109 6,109 -

Securities Available for sale 465,163 465,163 -

Total assets ¥ 481,679 ¥ 481,679 ¥ - Corporate bonds ¥ 30,000 ¥ 29,951 ¥ (48)

Total liabilities ¥ 30,000 ¥ 29,951 ¥ (48) (Notes) (a) Measuring method for fair value of financial instruments

(i) Assets Cash and deposits Fair value of cash and deposits is deemed as book value since it is scheduled to be settled in a short period of time and fair value approximates book value. Money held in trust Fair value of deposits is deemed as book value since it is scheduled to be settled in a short period of time and fair value approximates book value. Fair value of stocks is based on market quoted price, fair value of bonds based on quoted price, price released by Japan Securities Dealers Association, price quoted by counterparties and price provided by financial institutions. Fair value of quoted derivative is based on market quoted price.

Securities Fair value of stocks is based on market quoted price. Fair value of bonds is based on quoted price, price released by Japan Securities Dealers Association, price quoted by counterparties and price provided by financial institutions. Fair value of investment trust funds is based on publicly announced price or unit price provided by financial institution. With respect to investment in partnership, partnership’s property is measured at fair value if available, and then the part of the Company’s share is recorded to balance sheets.

22

(ii) Liabilities

Corporate bonds Fair value of corporate bonds is calculated by financial institution as the amount of future cash flow discounted at the risk free rate for the corresponding period, considering the factors of market environment and other similar securities with an established equity content level.

(b) Financial instruments extremely difficult to measure fair value are as follows:

Millions of yen


2013 2012 2013 Foreign bonds ¥ 3 ¥ 2 $ 31

Non-listed stocks 808 708 8,591 Total ¥ 811 ¥ 710 $ 8,623

Above mentioned financial instruments where there are no available market prices and extremely difficult to measure fair value, are not subject to disclosure of fair value.

(c) The redemption schedules as of 31st March 2013 and 2012 for monetary receivables and

available-for-sale securities with maturities are as follows: As of 31st March 2013 Millions of yen Due in 1 year

or less Due after 1 year

through

5 years

Due after 5 years through

10 years

Due after 10 years

Deposits ¥ 11,063 ¥ - ¥ - ¥ - Securities

Available-for-sale securities with maturities

Government bonds 37,600 29,360 13,200 - Municipal bonds - 2,671 2,100 - Corporate bonds 6,300 51,386 12,692 - Foreign securities 29,007 94,836 47,553 34,876

Total ¥ 83,970 ¥ 178,254 ¥ 75,545 ¥ 34,876

23

Thousands of U.S. dollars (Note 1(2)) Due in 1 year


through 5 years


10 years

Due after 10 years

Deposits $ 117,628 $ - $ - $ - Securities


Government bonds 399,787 312,174 140,350 - Municipal bonds - 28,399 22,328 - Corporate bonds 66,985 546,368 134,949 - Foreign securities 308,421 1,008,357 505,614 370,824

Total $ 892,822 $ 1,895,311 $ 803,242 $ 370,824

As of 31st March 2012 Millions of yen Due in 1 year


through

5 years


10 years

Due after 10 years

Deposits ¥ 10,406 ¥ - ¥ - ¥ - Securities


Government bonds 56,400 27,400 15,200 - Municipal bonds 402 2,321 2,550 - Corporate bonds 8,588 34,135 21,725 - Foreign securities 37,489 69,793 47,473 32,680

Total ¥ 113,287 ¥ 133,650 ¥ 86,949 ¥ 32,680

(d) The repayment schedule as of 31st March 2013 and 2012 for corporate bonds is follows: As of 31st March 2013

(Millions of yen) Due in 1

year or less Due after 1

year through 2

years

Due after 2 years

through 3 years

Due after 3 years

through 4 years

Due after 4 years

through 5 years

Due after 5 years

Corporate bonds

- - - - - 30,000

(Thousands of U.S.dollars (Note 1(2)))

Due in 1 year or less

Due after 1 year

through 2 years

Due after 2 years

through 3 years

Due after 3 years

through 4 years

Due after 4 years

through 5 years

Due after 5 years

Corporate bonds

- - - - - 318,979

24

As of 31st March 2012 (Millions of yen)

Due in 1 year or less

Due after 1 year

through 2 years

Due after 2 years

through 3 years

Due after 3 years

through 4 years

Due after 4 years

through 5 years

Due after 5 years

Corporate bonds

- - - - - 30,000

11. Investments in Securities

(1) There are neither trading securities nor held-to-maturity securities.

(2) Information regarding available-for-sale securities with fair value as of 31st March 2013 and 2012 is as follows:

As of 31st March 2013 Millions of yen Securities for which fair value exceeds their cost Fair value Cost Unrealized

gain (loss)

Government, municipal and corporate bonds ¥ 136,327 ¥ 132,309 ¥ 4,017Stocks 63,171 16,627 46,544Foreign securities 218,903 199,053 19,850Other securities 204 200 4

Subtotal ¥ 418,606 ¥ 348,190 ¥ 70,416 Securities for which fair value does not exceed their cost

Government, municipal and corporate bonds ¥ 24,957 ¥ 24,991 ¥ (33)Stocks 905 912 (6)Foreign securities 32,733 33,867 (1,133)Other securities 44 44 (0)

Subtotal 58,641 59,815 (1,174)Total ¥ 477,247 ¥ 408,005 ¥ 69,242

25

Thousands of U.S. dollars (Note 1(2)) Securities for which fair value exceeds their cost Fair value Cost Unrealized

gain (loss)

Government, municipal and corporate bonds $ 1,449,516 $ 1,406,794 $ 42,711Stocks 671,674 176,788 494,885Foreign securities 2,327,517 2,116,459 211,057Other securities 2,169 2,126 42

Subtotal $ 4,450,887 $ 3,702,179 $ 748,708 Securities for which fair value does not exceed their cost

Government, municipal and corporate bonds $ 265,358 $ 265,720 $ (350)Stocks 9,622 9,696 (63)Foreign securities 348,038 360,095 (12,046)Other securities 467 467 (0)

Subtotal 623,508 635,991 (12,482)Total $ 5,074,396 $ 4,338,171 $ 736,225

* Available-for-sale securities which are extremely difficult to measure fair value are not included in the above table.

As of 31st March 2012 Millions of yen Securities for which fair value exceeds their cost Fair value Cost Unrealized

gain (loss)

Government, municipal and corporate bonds ¥ 101,973 ¥ 99,132 ¥ 2,840Stocks 51,570 14,198 37,372Foreign securities 170,678 158,857 11,820Other securities 264 261 2

Subtotal ¥ 324,486 ¥ 272,450 ¥ 52,036 Securities for which fair value does not exceed their cost

Government, municipal and corporate bonds ¥ 71,817 ¥ 72,017 ¥ (199)Stocks 3,278 3,896 (618)Foreign securities 53,562 58,466 (4,903)Other securities 12,018 12,085 (66)

Subtotal 140,677 146,465 (5,788)Total ¥ 465,163 ¥ 418,915 ¥ 46,247

* Available-for-sale securities which are extremely difficult to measure fair value are not

included in the above table.

26

(3) Sales of securities classified as available-for-sale and the aggregate gain and loss are as follows:



2013 2012 2013 Proceeds from sales

Government, municipal and corporatebonds

¥ 7,235 ¥ 59,462 $ 76,927

Stocks 1,785 30,940 18,979Foreign securities 98,503 78,106 1,047,347Other securities - 21,886 -

Total ¥ 107,524 ¥ 190,395 $ 1,143,264 Gain on sales


¥ 485 ¥ 1,190 $ 5,156

Stocks 1,217 25,907 12,939Foreign securities 8,267 2,303 87,900Other securities - 41 -

Total ¥ 9,970 ¥ 29,441 $ 106,007 Loss on sales


¥ 55 ¥ 434 $ 584

Stocks 188 0 1,998Foreign securities 2,173 5,530 23,104Other securities - 821 -

Total ¥ 2,418 ¥ 6,786 $ 25,709

(4) Securities for which Impairment Losses Are Recognized

For the years ended 31st March 2013, the Company recognized impairment losses regarding available-for-sale securities with fair value (Corporate Bonds) in the amount of 102 million yen (1,084 thousand U.S. dollars) in the consolidated statements of income. Consolidated subsidiaries recognized impairment losses regarding available-for-sale securities with fair value (Foreign securities) in the amount of 618 million yen (6,570 thousand U.S. dollars) in the consolidated statements of income. For the years ended 31st March 2012, the Company recognized impairment losses regarding available-for-sale securities with fair value (Foreign securities) and available-for-sale securities extremely difficult to measure fair value (Stocks) in the amount of 33 million yen and 236 million yen in the consolidated statements of income. Consolidated subsidiaries recognized impairment losses regarding available-for-sale securities with fair value (Foreign securities) in the amount of 21 million yen in the consolidated statements of income.

27

In principle, impairment losses on available-for-sale securities with fair value held by the Company are recognized when the fair value have declined by 30% or more of their book value. Impairment losses on available-for-sale securities with fair value held by consolidated subsidiaries are recognized when the fair value have declined below their book value and the decline in fair value is deemed to be other than temporary.

12. Money Held in Trust

(1) Money Held in Trust for Trading Purposes

Millions of yen


2013 2012 2013 Net unrealized gains (losses) recognized for the fiscal year

¥ 180 ¥ 155 $ 1,913

(2) Money Held in Trust for Being Held to Maturity

None

(3) Money Held in Trust Not for Trading Purposes or Not Being Held to Maturity None

13. Derivatives None

14. Accrued Retirement Benefits for Employees

(1) Outline of Retirement Benefit Plans

The Company has defined benefit retirement plans and lump-sum payment retirement plans covering substantially all employees. Additionally, a subsidiary has defined benefit retirement plans. The Company introduced defined benefit pension plans as a replacement of tax-qualified pension plans on 1st August 2011.

28

(2) Breakdown of Accrued Retirement Benefits for Employees

Millions of yen

Thousands of U.S. dollars(Note 1(2))

2013 2012 2013

Projected benefit obligations ¥ (10,061) ¥ (9,487) $ (106,975)Plan assets 5,615 4,942 59,702Unfunded retirement benefit obligation ･･･(a) (4,446) (4,544) (47,272)Unrecognized actuarial differences ･･･(b) (378) 800 (4,019)Net amount in the consolidated balance sheets (a)+(b) (4,824) (3,743) (51,291)Accrued retirement benefits for employees ¥ (4,824) ¥ (3,743) $ (51,291)

(3) Breakdown of Retirement Benefit Cost

Millions of yen

Thousands of U.S. dollars(Note 1(2))

2013 2012 2013 Service cost ¥ 436 ¥ 363 $ 4,635 Interest cost 246 223 2,615 Expected return on plan assets (96) (91) (1,020)Amortization of unrecognized actuarial differences 859 37 9,133 Amortization of unrecognized prior service costs 0 (58) 0 Retirement benefit cost ¥ 1,446 ¥ 475 $ 15,374 Additional retirement allowances paid for the year ended 31st March 2012 amounted to 71 million yen. The allowances are included in the operating and general administrative expenses and are not included in the above.

(4) Assumptions Used in Calculation of Accrued Retirement Benefits for Employees A. Method of attributing the projected benefits to periods of service

Straight-line basis B. Discount rate and expected rate of return on plan assets

2013 2012

Discount rate Mainly 2.0% Mainly 2.0% Expected rate of return on plan assets Mainly 0.7% Mainly 0.7%

C. Amortization of unrecognized prior service cost

9.2 years for consolidated subsidiaries D. Amortization of actuarial differences

Mainly 1 year (fully amortized in the following fiscal year)

29

15. Deferred Tax

(1) Major Components of Net Deferred Tax Assets

Millions of yen


2013 2012 2013 Deferred tax assets Underwriting reserves ¥ 25,130 ¥ 28,243 $ 267,198 Tax loss carryforwards 22,212 19,882 236,172 Outstanding claims 14,406 17,122 153,173 Reserve for price fluctuations 2,329 2,258 24,763 Accrued retirement benefits for

employees 2,088

1,625

22,200Impairment losses on securities 141 303 1,499

Others 1,497 1,273 15,917 Subtotal of deferred tax assets 67,807 70,708 720,967 Valuation allowance (5,541) (5,065) (58,915) Total deferred tax assets ¥ 62,265 ¥ 65,643 $ 662,041Deferred tax liabilities Net unrealized gains on

available-for-sale securities ¥ (21,582) ¥ (14,416)

$ (229,473) Deferred policy acquisition costs (783) (587) (8,325)

Others (190) (240) (2,020) Total deferred tax liabilities ¥ (22,555) ¥ (15,244) $ (239,819)Net deferred tax assets ¥ 39,709 ¥ 50,398 $ 422,211

(2) The reconciliation of the statutory income tax rate to the effective income tax rate for

the years ended 31st March 2013 is as follows:

2013 Statutory income tax rate of the Company 33.3% (Adjustments)

Undistributed profits of controlled foreign companies 6.6 Others 1.1 Effective income tax rate of the Companies 41.0%

The reconciliation of the statutory income tax rate to the effective income tax rate for the years ended 31st March 2012 is not shown due to loss before income taxes.

30

16. Segment Information (1) Overview of Reportable Segments

The company’s reportable segments are components of the company about which separate financial information is available that is evaluated regularly by the management in deciding how to allocate resources and in assessing performance. Our Reportable segments are “The Toa Reinsurance Company, Limited (hereafter Toa)”, “The Toa Reinsurance Co. of America (TRA)” and “The Toa 21st Century Reinsurance Co., Ltd (TTFC)”. The company’s business is assuming reinsurance, and within the company TRA is in charge of North America area, Toa and TTFC are in charge of others in the main.

(2) Measurement of Sales, Profit or Loss, Assets, Liabilities, and Other Items for Each

Reportable Segment

Accounting policies of each reported segment are in a manner consistent with that in the “Basis of Accounting Principles” Profit or loss of each reportable segment shown in the following table represents “Net income (loss)”. Inter-segment revenues are measured on the basis of market transactions on arm’s length terms.

(3) Information about Sales, Profit or Loss, Assets, Liabilities, and Other Items on Each

Reportable Segment For the year ended 31st March 2013

(Millions of yen) Reportable segments

Toa TRA TTFC Total Sales

Sales to external customers 135,001 37,145 - 172,147 Inter-segment sales or transfers (3,798) (6,086) 8,513 (1,371)

Total 131,203 31,059 8,513 170,775 Profit or loss by reportable segments 4,489 2,873 1,146 8,508 Assets by reportable segments 474,907 151,086 41,478 667,472 Liabilities by reportable segments 379,850 94,220 12,318 486,389 Other items

Depreciation 289 56 - 345 Interest and dividends income

7,382 3,777 656 11,817

Interest expenses 1,601 - - 1,601 Extraordinary income 0 - - 0

Gain on disposal of fixed assets

0 - - 0

Extraordinary loss 232 - - 232 Provision for reserve under the

special law 232 - - 232

Income tax expense 3,647 1,100 297 5,044

31

(Thousands of U.S. dollars (Note 1(2)))

Reportable segments Toa TRA TTFC Total

Sales Sales to external customers 1,435,417 394,949 - 1,830,377 Inter-segment sales or transfers (40,382) (64,710) 90,515 (14,577)

Total 1,395,034 330,239 90,515 1,815,789 Profit or loss by reportable segments 47,729 30,547 12,185 90,462 Assets by reportable segments 5,049,516 1,606,443 441,020 7,096,990 Liabilities by reportable segments 4,038,809 1,001,807 130,972 5,171,600 Other items

Depreciation 3,072 595 - 3,668 Interest and dividends income 78,490 40,159 6,975 125,645 Interest expenses 17,022 - - 17,022 Extraordinary income 0 - - 0

Gain on disposal of fixed assets 0 - - 0 Extraordinary loss 2,466 - - 2,466

Provision for reserve under the special law

2,466 - - 2,466

Income tax expense 38,777 11,695 3,157 53,631 * Sales represent “Net premiums written”. For the year ended 31st March 2012

(Millions of yen) Reportable segments

Toa TRA TTFC Total Sales

Sales to external customers 132,654 28,587 - 161,242 Inter-segment sales or transfers 1,424 (5,112) 3,703 15

Total 134,079 23,474 3,703 161,257 Profit or loss by reportable segments (15,522) 5,147 (5,138) (15,512)Assets by reportable segments 497,910 128,238 34,678 660,827 Liabilities by reportable segments 418,816 77,882 10,838 507,536 Other items

Depreciation 311 46 - 357 Interest and dividends income

11,279 4,207 739 16,226

Interest expenses 44 - - 44 Extraordinary income 248 - - 248

Gain on disposal of fixed assets

248 - - 248

Extraordinary loss 256 - - 256 Impairment losses on fixed assets 3 - - 3 Provision for reserve under the

special law 245 - - 245

Income tax expense 8,454 1,980 (1,689) 8,746 * Sales represent “Net premiums written”.

32

(4) Reconciliations of Total Reportable Segments Amount to Amount Presented in Financial Statements and Descriptions of Reconciliations

A. Sales

Millions of yen


2013 2012 2013 Total of reportable segments ¥ 170,775 ¥ 161,257 $ 1,815,789Elimination of inter-segment transactions 1,371 (15) 14,577Other adjustments (657) 121 (6,985)Net premiums written in consolidated financial statements

¥ 171,489 ¥ 161,363 $ 1,823,381

B. Profit or loss

Millions of yen


2013 2012 2013 Total of reportable segments ¥ 8,508 ¥ (15,512) $ 90,462Elimination of inter-segment transactions (911) (2,755) (9,686)Net income (loss) in consolidated financial statements

¥ 7,597 ¥ (18,268) $ 80,776

C. Assets

Millions of yen


2013 2012 2013 Total of reportable segments ¥ 667,472 ¥ 660,827 $ 7,096,990Elimination of inter-segment transactions (69,153) (72,333) (735,279)Total assets in consolidated financial statements ¥ 598,319 ¥ 588,494 $ 6,361,711

D. Liabilities

Millions of yen


2013 2012 2013 Total of reportable segments ¥ 486,389 ¥ 507,536 $ 5,171,600Elimination of inter-segment transactions (13,122) (12,565) (139,521)Total liabilities in consolidated financial statements

¥ 473,266 ¥ 494,970 $ 5,032,068

33

E. Other items



2013 2012 2013 Interest and dividends income Total of reportable segments ¥ 11,817 ¥ 16,226 $ 125,645 Adjustments* (1,467) (4,817) (15,598) Amounts in consolidated financial statements ¥ 10,349 ¥ 11,409 $ 110,037 Income tax expense Total of reportable segments ¥ 5,044 ¥ 8,746 $ 53,631 Adjustments* 236 1,849 2,509 Amounts in consolidated financial statements ¥ 5,281 ¥ 10,595 $ 56,150

* Adjustment represents “elimination of inter-segment transactions”. (5)Related Information For the year ended 31st March 2013 A. Information about revenue derived from its products or services

(Millions of yen)

Fire Marine Motor General

LiabilitiesLife Others Total

Sales to external customers

54,523 9,225 21,624 23,017 39,073 24,026 171,489




Sales to external

customers 579,723 98,086 229,920 244,731 415,449 255,459 1,823,381

* Sales represent “Net premiums written”. B. Information by geographic area

(a) Sales (Millions of yen)

Japan United States Others Total 110,744 38,610 22,134 171,489


Japan United States Others Total 1,177,501 410,526 235,342 1,823,381

* Sales are classified by country based on the geographic area of customers. ** Sales represent “Net premiums written”.

(b) Tangible fixed assets

(Millions of yen) Japan Others Total

9,744 910 10,654

34


Japan Others Total 103,604 9,675 113,280

C. Information about major customers

None

For the year ended 31st March 2012 A. Information about revenue derived from its products or services

(Millions of yen)



Sales to external

customers 53,437 9,404 22,767 19,905 33,715 22,132 161,363

* Sales represent “Net premiums written”. B. Information by geographic area

(a) Sales (Millions of yen)

Japan United States Others Total 106,453 30,550 24,358 161,363

* Sales are classified by country based on the geographic area of customers. ** Sales represent “Net premiums written”.

(b) Tangible fixed assets

(Millions of yen) Japan Others Total

9,988 902 10,891 C. Information about major customers

None

(6) Information about Impairment Losses on Fixed Assets by Reportable Segments For the year ended 31st March 2013

None

For the year ended 31st March 2012

Please see Note16 (3).

(7) Information about Amortization of Goodwill and Carrying Amount by Reportable Segments

None

35

(8) Information about Gains on Negative Goodwill by Reportable Segments

None

17. Related Party Transactions

There are no material transactions with related parties to report for the fiscal year ended 31st March 2013 and 31st March 2012.

18. Per Share Information

Yen


2013 2012 2013 Net assets per share ¥ 1,377.70 ¥ 1,032.92 $ 14.65 Net income (loss) per share 83.89 (201.76) 0.89

* There are no potential common shares, therefore diluted net income per share is not described for

the fiscal year ended 31st March 2013. ** There are net loss per share and no potential common shares, therefore diluted net income per

share is not described for the fiscal year ended 31st March 2012. *** Basis for computing net income (loss) per share is as follows:

For the fiscal year ended 31st March 2013

For the fiscal year ended 31st March 2012

Net income (loss) (Millions of yen) 7,597 (18,268)Amounts not attributable to common shareholders (Millions of yen)

- -

Net income (loss) attributable to common shareholders (Millions of yen)

7,597 (18,268)

Average number of common shares outstanding for the year (Thousand shares)

90,552 90,542

19. Significant Subsequent Events after Balance Sheet Date

The Company has resolved to transfer the treasury stock by third party allotment for the purpose of the capital adequacy at the general shareholders’ meeting held on 27th June 2013. The details of the resolution are as follows: (1) Type of the shares to be transferred

Common stock

(2) Number of the shares to be transferred 5,000,000 shares (the upper limit)

36

(3) Transfer price 615 yen per share (the lower limit)

The Board of Directors of the Company has been delegated on the decision of specific conditions regarding this transfer.

37


Related Information to the Consolidated Financial Statements 1. The Details of Corporate Bonds

Issuer Series Issue Date

As of 1st April

2012

As of 31st March

2013

Coupon (%)

Collateral Maturity

The Toa Reinsurance Company, Limited

Toa Reinsurance #1 Step-up Callable Subordinated Notes (Qualified Institutional Investors Only)

21st March 2012

30,000 million yen(318,979 thousand U.S.dollars (Note1(2)))

30,000 million yen(318,979 thousand U.S.dollars(Note1(2)))

5.34 None 20th July 2062

(Notes)

There is no amount to mature within 5years after 31st March 2013.

2. The Details of Borrowings

(Millions of yen) As of

1st April 2012

As of 31st March

2013

Average interest rate

(%) The term of repayment

Lease liabilities due in 1 year or less

47 38 - -

Lease liabilities (except for those due in 1 year or less)

92 76 - From 1st April 2014 to 30th November 2018

Total 139 114 - -


As of 1st April

2012

As of 31st March

2013

Average interest rate

(%) The term of repayment

Lease liabilities due in 1 year or less

499 404 - -

Lease liabilities (except for those due in 1 year or less)

978 808 - From 1st April 2014 to 30th November 2018

Total 1,477 1,212 - -

(Notes) (a) The above amount is included in “Other liabilities” in the consolidated balance sheets. (b) “Average interest rate” on lease liabilities is not stated above because lease liabilities in the

consolidated balance sheets are recognized without deducting lease interest included in the total lease charges.

(c) The repayment for the lease liabilities (except for those due in 1 year or less) scheduled within 5 years following the consolidated balance sheet date are as follows:

Due after 1 year through 2 years

Due after 2 years through 3 years



Lease liabilities (Millions of yen)

32 25 14 3

38

39

Due after 1 year through 2 years




Lease liabilities (Thousands of U.S. dollars(Note 1(2)))

340 265 148 31

3. The Details of Asset Retirement Obligations

None About Independent Auditors

Independent auditors for the years ended 31st March 2013 were Ernst & Young ShinNihon LLC.

the toa reinsurance company, limited and subsidiaries … · 2018-06-13 · the toa reinsurance...

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