Japan Post Insurance (7181) Investor presentation summary

Overview of the economic value-based solvency regulation and response policy

• New economic value-based solvency regulations effective March 31, 2026, aim to enhance policyholder protection, risk management, and information disclosure.

• ESR will be measured and disclosed per new standards, with business management aligned to these ESR standards.

• Solvency regulations introduce three pillars: solvency requirements, internal control and supervisory review, and enhanced disclosure.

• ESR standards set intervention thresholds, requiring recovery actions if ratios fall below set levels.

• Key disclosures of new EV and ESR figures are scheduled for mid-May and late July 2026.

ESR indicators after the introduction of new regulations

• ESR as of September 30, 2025, is 197%, down 11 points from the old standard due to inclusion of mass lapse risk and use of standard stress coefficients.

• Qualifying capital remains at ¥4.75 trillion, with required capital at ¥2.41 trillion under the new standard.

• Changes reflect broader risk coverage and adjustments in risk calculation methodology.

Breakdown and sensitivity of required capital

• Surrender and lapse risk remains a significant portion of required capital, with asset management risks also prominent.

• Sensitivity to yen interest rate fluctuations has increased due to mass lapse risk.

• Required capital breakdown: insurance underwriting risk 38%, asset management risk 54%, operational risk 7%.