Life Insurance in Asia Pacific (2015)

Asia-Pacific - Life Insurance 0200 - 0976 - 2014

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MarketLine Industry Profile

Life Insurance in Asia-Pacific January 2015

Reference Code: 0200-0976

Publication Date: January 2015

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MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED



EXECUTIVE SUMMARY

Market value The Asia-Pacific life insurance market grew by 4.5% in 2014 to reach a value of $928 billion.

Market value forecast In 2019, the Asia-Pacific life insurance market is forecast to have a value of $1,203.8 billion, an increase of 29.7% since

2014.

Category segmentation Life insurance is the largest segment of the life insurance market in Asia-Pacific, accounting for 82.6% of the market's

total value.

Geography segmentation Japan accounts for 49.5% of the Asia-Pacific life insurance market value.

Market share Japan Post Insurance is the leading player in the Asia-Pacific life insurance market, generating a 8.9% share of the

market's value.

Market rivalry Despite healthy growth within the Asia-Pacific life insurance market, the degree of rivalry is measured as strong.



TABLE OF CONTENTS

Executive Summary ....................................................................................................................................................... 2

Market value ............................................................................................................................................................... 2

Market value forecast ................................................................................................................................................. 2

Category segmentation .............................................................................................................................................. 2

Geography segmentation ........................................................................................................................................... 2

Market share .............................................................................................................................................................. 2

Market rivalry .............................................................................................................................................................. 2

Market Overview ............................................................................................................................................................ 7

Market definition ......................................................................................................................................................... 7

Market analysis .......................................................................................................................................................... 7

Market Data ................................................................................................................................................................... 8

Market value ............................................................................................................................................................... 8

Market Segmentation ..................................................................................................................................................... 9

Category segmentation .............................................................................................................................................. 9

Geography segmentation ......................................................................................................................................... 10

Market share ............................................................................................................................................................ 11

Market Outlook ............................................................................................................................................................. 12

Market value forecast ............................................................................................................................................... 12

Five Forces Analysis .................................................................................................................................................... 13

Summary .................................................................................................................................................................. 13

Buyer power ............................................................................................................................................................. 14

Supplier power ......................................................................................................................................................... 15

New entrants ............................................................................................................................................................ 16

Threat of substitutes ................................................................................................................................................. 18

Degree of rivalry ....................................................................................................................................................... 19

Leading Companies ..................................................................................................................................................... 20

China Life Insurance Company Limited ................................................................................................................... 20

Japan Post Group .................................................................................................................................................... 23

Meiji Yasuda Life Insurance Company ..................................................................................................................... 24

Nippon Life Insurance Company .............................................................................................................................. 27

Appendix ...................................................................................................................................................................... 30



Methodology ............................................................................................................................................................. 30

Industry associations ................................................................................................................................................ 31

Related MarketLine research ................................................................................................................................... 31



LIST OF TABLES

Table 1: Asia-Pacific life insurance market value: $ billion, 2010–14 ............................................................................. 8

Table 2: Asia–Pacific life insurance market category segmentation: $ billion, 2014 ...................................................... 9

Table 3: Asia–Pacific life insurance market geography segmentation: $ billion, 2014 ................................................. 10

Table 4: Asia-Pacific life insurance market share: % share, by value, 2014 ................................................................ 11

Table 5: Asia-Pacific life insurance market value forecast: $ billion, 2014–19 ............................................................. 12

Table 6: China Life Insurance Company Limited: key facts ......................................................................................... 20

Table 7: China Life Insurance Company Limited: key financials ($) ............................................................................. 21

Table 8: China Life Insurance Company Limited: key financials (CNY) ....................................................................... 21

Table 9: China Life Insurance Company Limited: key financial ratios .......................................................................... 21

Table 10: Japan Post Group: key facts ........................................................................................................................ 23

Table 11: Meiji Yasuda Life Insurance Company: key facts ......................................................................................... 24

Table 12: Meiji Yasuda Life Insurance Company: key financials ($) ............................................................................ 25

Table 13: Meiji Yasuda Life Insurance Company: key financials (¥) ............................................................................ 25

Table 14: Meiji Yasuda Life Insurance Company: key financial ratios.......................................................................... 25

Table 15: Nippon Life Insurance Company: key facts .................................................................................................. 27

Table 16: Nippon Life Insurance Company: key financials ($) ..................................................................................... 28

Table 17: Nippon Life Insurance Company: key financials (¥) ..................................................................................... 28

Table 18: Nippon Life Insurance Company: key financial ratios ................................................................................... 28



LIST OF FIGURES

Figure 1: Asia-Pacific life insurance market value: $ billion, 2010–14 ............................................................................ 8

Figure 2: Asia–Pacific life insurance market category segmentation: % share, by value, 2014 ..................................... 9

Figure 3: Asia–Pacific life insurance market geography segmentation: % share, by value, 2014 ................................ 10

Figure 4: Asia-Pacific life insurance market share: % share, by value, 2014 ............................................................... 11

Figure 5: Asia-Pacific life insurance market value forecast: $ billion, 2014–19 ............................................................ 12

Figure 6: Forces driving competition in the life insurance market in Asia-Pacific, 2014 ............................................... 13

Figure 7: Drivers of buyer power in the life insurance market in Asia-Pacific, 2014 ..................................................... 14

Figure 8: Drivers of supplier power in the life insurance market in Asia-Pacific, 2014 ................................................. 15

Figure 9: Factors influencing the likelihood of new entrants in the life insurance market in Asia-Pacific, 2014 ............ 16

Figure 10: Factors influencing the threat of substitutes in the life insurance market in Asia-Pacific, 2014 ................... 18

Figure 11: Drivers of degree of rivalry in the life insurance market in Asia-Pacific, 2014 ............................................. 19

Figure 12: China Life Insurance Company Limited: revenues & profitability ................................................................ 22

Figure 13: China Life Insurance Company Limited: assets & liabilities ........................................................................ 22

Figure 14: Meiji Yasuda Life Insurance Company: revenues & profitability .................................................................. 26

Figure 15: Meiji Yasuda Life Insurance Company: assets & liabilities .......................................................................... 26

Figure 16: Nippon Life Insurance Company: revenues & profitability ........................................................................... 29

Figure 17: Nippon Life Insurance Company: assets & liabilities ................................................................................... 29



MARKET OVERVIEW

Market definition The value of the life insurance market is shown in terms of gross premium incomes from mortality protection and

retirement savings plans. All currency conversions have been calculated using constant 2013 annual average exchange

rates. The insurance market depends on a variety of economic and non-economic factors and future performance is

difficult to predict. The forecast given in this report is not based on a complex economic model, but is intended as a

rough guide to the direction in which the market is likely to move.

For the purposes of this report, Asia-Pacific comprises Australia, China, India, Indonesia, Japan, New Zealand,

Singapore, South Korea, Taiwan, and Thailand.

Market analysis The Asia-Pacific life insurance market has remained in low to moderate growth in recent years and the market is

expected to continue this trend and marginally accelerate through to the end of the forecast period in 2019.

The Asia-Pacific life insurance market is expected to generate total gross written premiums of $928.0bn in 2014,

representing a compound annual growth rate (CAGR) of 3.3% between 2010 and 2014. In comparison, the Japanese

and Chinese markets will grow with CAGRs of 3.6% and 1.7% respectively, over the same period, to reach respective

values of $459.3bn and $167.4bn in 2014.

The life insurance segment is expected to be the market's most lucrative in 2014, with total gross written premiums of

$766.3bn, equivalent to 82.6% of the market's overall value. The pension/annuity segment will contribute gross written

premiums of $161.7bn in 2014, equating to 17.4% of the market's aggregate value.

The performance of the market is forecast to accelerate, with an anticipated CAGR of 5.3% for the five-year period 2014

- 2019, which is expected to drive the market to a value of $1,203.8bn by the end of 2019. Comparatively, the Japanese

and Chinese markets will grow with CAGRs of 5.4% and 6.3% respectively, over the same period, to reach respective

values of $598.4bn and $227.5bn in 2019.



MARKET DATA

Market value The Asia-Pacific life insurance market grew by 4.5% in 2014 to reach a value of $928 billion.

The compound annual growth rate of the market in the period 2010–14 was 3.3%.

Table 1: Asia-Pacific life insurance market value: $ billion, 2010–14

Year $ billion € billion % Growth

2010 815.4 614.0

2011 830.4 625.2 1.8%

2012 874.8 658.7 5.4%

2013 888.1 668.7 1.5%

2014 928.0 698.8 4.5%

CAGR: 2010–14 3.3%

SOURCE: MARKETLINE M A R K E T L I N E

Figure 1: Asia-Pacific life insurance market value: $ billion, 2010–14




MARKET SEGMENTATION

Category segmentation Life insurance is the largest segment of the life insurance market in Asia-Pacific, accounting for 82.6% of the market's

total value.

The Pension/annuity segment accounts for the remaining 17.4% of the market.

Table 2: Asia–Pacific life insurance market category segmentation: $ billion, 2014

Category 2014 %

Life insurance 766.3 82.6%

Pension/annuity 161.7 17.4%

Total 928 100%


Figure 2: Asia–Pacific life insurance market category segmentation: % share, by value, 2014




Geography segmentation Japan accounts for 49.5% of the Asia-Pacific life insurance market value.

China accounts for a further 18% of the Asia-Pacific market.

Table 3: Asia–Pacific life insurance market geography segmentation: $ billion, 2014

Geography 2014 %

Japan 459.3 49.5

China 167.4 18.0

South Korea 98.2 10.6

India 59.9 6.5

Rest of Asia-Pacific 143.3 15.4

Total 928.1 100%


Figure 3: Asia–Pacific life insurance market geography segmentation: % share, by value, 2014




Market share Japan Post Insurance is the leading player in the Asia-Pacific life insurance market, generating a 8.9% share of the

market's value.

Meiji Yasuda Life Insurance Company accounts for a further 7% of the market.

Table 4: Asia-Pacific life insurance market share: % share, by value, 2014

Company % Share

Japan Post Insurance 8.9%

Meiji Yasuda Life Insurance Company 7.0%

Nippon Life Insurance Co. 6.9%

China Life 5.3%

Other 71.9%

Total 100%


Figure 4: Asia-Pacific life insurance market share: % share, by value, 2014




MARKET OUTLOOK

Market value forecast In 2019, the Asia-Pacific life insurance market is forecast to have a value of $1,203.8 billion, an increase of 29.7% since

2014.

The compound annual growth rate of the market in the period 2014–19 is predicted to be 5.3%.

Table 5: Asia-Pacific life insurance market value forecast: $ billion, 2014–19

Year $ billion € billion % Growth

2014 928.0 698.8 4.5%

2015 983.2 740.3 5.9%

2016 1,029.0 774.8 4.7%

2017 1,078.3 811.9 4.8%

2018 1,139.1 857.7 5.6%

2019 1,203.8 906.4 5.7%

CAGR: 2014–19 5.3%


Figure 5: Asia-Pacific life insurance market value forecast: $ billion, 2014–19




FIVE FORCES ANALYSIS

The life insurance market will be analyzed taking insurance companies as players. The key buyers will be taken as

consumers (both individual as well as corporate), and ict manufacturers, software houses and reinsurance companies as

the key suppliers.

Summary

Figure 6: Forces driving competition in the life insurance market in Asia-Pacific, 2014


Despite healthy growth within the Asia-Pacific life insurance market, the degree of rivalry is measured as strong.

Buyer power is moderate overall, as is the ability of new players in entering the market place with supplier power

remaining strong. Despite savings and investments being among the alternative methods of insuring one’s self,

substitutes possess a weak force in the market, due to the expertise and capital required for investment.

The demand for life insurance is determined by various factors: i.e. gross domestic product, average length of life

expectancy, inflation and interest rates. Additionally, in developing countries, factors such as market structure, the

presence of foreign investors and financial development of economies should be taken into consideration. There are also

various reasons for getting a life insurance policy. Such a policy guarantees a replacement income for one’s dependents

in case of death or major illness. Some types of life insurance create a cash value that, if not paid out as a death benefit,

can be borrowed or withdrawn on the owner’s request, which makes it an important element of sound financial planning

and investment.

Since most people consider paying their life insurance policy premiums a high priority, buying a cash-value type policy

can create a kind of “forced” savings plan. Various companies can also use group life insurance to cover their employees

or corporate-owned life insurance (COLI). COLI was originally purchased by companies to hedge against the financial

cost of losing key employees to unexpected death, the risk of recruiting and training replacements of necessary or

highly-trained personnel, or to fund corporate obligations to redeem stock upon the death of an owner.



Buyer power

Figure 7: Drivers of buyer power in the life insurance market in Asia-Pacific, 2014


Due to the nature of the market and importance of the product offered, there are many individual consumers, diminishing

buyer power, as the impact of losing an individual customer is rather marginal. Large corporate clients have a lot more

bargaining power with insurance companies as they usually pay millions of dollars a year in premiums and losing such

high-margin corporate clients can negatively affect a player's revenues. This increases buyer power to some extent.

Customers in this market are not particularly loyal to one specific company and are willing to shop around for the best

deal. Online comparison sites allow customers to choose policies that meet their individual insurance needs, boosting

buyer power, however these can be negated in some instances as many big players own multiple brands.

However buyer power is weakened by the existence of switching costs, as for individuals, switching from one player to

another will often involve surrendering a policy early (an exception is where a term policy reaches its end and the buyer

chooses a different company for their next policy). The payout on a surrendered policy may be taxable, whereas the

payout on the death of the insured person is tax-free; also early surrender of an index-linked plan may mean that the

policyholder misses out on some interest payments. Buyer power is assessed as moderate overall.



Supplier power

Figure 8: Drivers of supplier power in the life insurance market in Asia-Pacific, 2014


Suppliers in the life insurance market include ICT manufacturers and software houses. Certain insurance companies

require specialized computer systems, tailored towards their unique range of products or services. Underwriters, for

instance, use computer applications known as "smart systems" to manage risks. These types of systems are complex

and are often linked up to internet databases. A secure and reliable ICT infrastructure is essential and companies are

often reliant on one supplier. This is normally a large and reputable company, such as IBM. Such suppliers may have

their own unique and patented systems. This creates a disincentive for insurance companies to switch suppliers as many

employers are reluctant to spend the money training staff on new systems, which increases supplier power. Despite

many insurance companies maintaining their own IT departments, there is little likelihood of significant backward

integration, which further strengthens suppliers (although it is equally unlikely that suppliers would attempt to integrate

forwards into insurance services). Life insurers also require the services of reinsurance companies, in order to reduce

their own exposure to insured risks. Overall supplier power is strong in the life insurance market.



New entrants

Figure 9: Factors influencing the likelihood of new entrants in the life insurance market in Asia-Pacific, 2014




Globalization is the key factor is bringing irreversible transformation of the Asia-Pacific life insurance market. India and

China are driving the growth in the region making it an important development engine for global insurers. The changing

socio-economic dynamics present attractive opportunities. The increasing wealth and educational development in Asia

has built a good foundation for the development of financial services. Barriers to entry into the life insurance market are

often described as low; however, new players entering the market must decide whether to initially enter on a large or

small scale, with each holding varying benefits and risks. The opportunity to enter the market on a small scale boosts the

threat of new entrants. However, to run successful operations within this market, highly specialized expertise and

knowledge are required. Entry to the market for well developed insurance companies is capital intensive and players

need to ensure some level of integration if entry to the market is to be a success. In the case of some Asia-Pacific

countries, forming cooperation with local players is often a good entry strategy as they benefit from experience and

knowledge of local needs and cultural background. Aviva employed such a strategy when entering the South Korean life

insurance market by forming a consortium with Woori Finance Holdings. Most of the successful life insurance

incumbents in the region employed a diversified income strategy: a substantial proportion of earnings are sourced

overseas, while maintaining a dominant position in the domestic market. Leading incumbents have strong reputation and

consumer recognition and they usually offer a vast range of services with which new entrants must compete. Most of the

threat from new entrants lies within the insurance industry itself. Repeat business is difficult to attain in this market, since

consumers will typically replace their life insurance policies at infrequent intervals only. This means that finding new

custom is vital, and access to distribution networks is a key criterion for successful market entry. Some companies have

carved out niche areas in which they underwrite insurance. These insurance companies are fearful of being squeezed

out by the big players. Another threat for many insurance companies is other financial services companies entering the

market. Indeed some banks and investment banks have started to offer insurance products. In some countries, however,

regulations are in place to prevent banks and other financial firms from entering the market. Government regulation is

generally stringent, limiting market entries by imposing capital adequacy and other requirements on players.

Furthermore, some countries, such as Japan, are looking to introduce new regulatory requirements similar to the EU

Solvency II directive, which is due to be implemented in 2014. The financial crash caused many governments to crack

down on banks and other financial institutions such as insurers and imposed new regulations. However some countries

have been less stringent with these containments and have seen better recovery of those markets. This may serve to

further dissuade new entrants. The likelihood of new entrants is assessed as moderate overall.



Threat of substitutes

Figure 10: Factors influencing the threat of substitutes in the life insurance market in Asia-Pacific, 2014


There are a number of alternatives to taking out an insurance policy, i.e. in the form of other financial products, such as

savings and investments. Savings and investments include deposits, mutual funds and direct investments in equities and

bonds. Wills are also a way of accounting for risk and protecting family members after death. These options could be a

cheaper alternative to life insurance, but savings do not guarantee protection in the same way as life insurance, which

reduces the benefit of this option. Consumers can adopt risk management strategies, such as 'Self-Insurance', whereby

an eligible risk is retained, but a calculated amount of money is set aside. An organization could choose to operate its

own 'captive' structure and form its own insurance company subsidiary. Some insurances are backed up by the law such

as motor insurance, but with life insurance generally the more developed the market is the more individuals feel that

such a product is an essential purchase, regardless of the relative quality of the product. Although these are viable

substitutes they require a certain amount of expertise and capital. The threat of substitutes with respect to the life

insurance market is therefore assessed as weak.



Degree of rivalry

Figure 11: Drivers of degree of rivalry in the life insurance market in Asia-Pacific, 2014


The Asia-Pacific life insurance market is fragmented, with several smaller companies in business alongside the majors.

For instance, the top four players account for just 28% of the market’s total value. Apart from India and China, which are

putting Asia on a global scale, other countries like Japan are also increasingly diversifying their insurance sectors. Japan

is home to some of the largest Asian insurers, and tends to expand its client portfolio across the region. The insurance

sector in this region has seen Western financial services companies compete for Asian assets. Players within the life

insurance market offer similar services but some are diversified, and pursue a number of non-life insurance lines, which

tends to ease rivalry to some extent. The leading players are large companies offering similar life products, although

there are a number of different plans including temporary, permanent and various subclasses. Because of the

homogenous nature of the leading players insurance has become more like a commodity - an area in which an insurance

company with a low cost structure, greater efficiency and better customer service will beat out competitors. Entry

barriers, though not insignificant, are lower than exit barriers. For example, the regulatory system, through the imposition

of such measures as capital adequacy, is designed to prevent insurers from going out of business, as this would be to

the detriment of policyholders. When exit barriers in a market are high, players may weather poor market conditions

where necessary - but this tends to boost rivalry. Insurance companies also use higher investment returns and a variety

of insurance investment products to try to lure in customers. This leads to greater consolidation within the market. Larger

companies prefer to take over or merge with other companies rather than spend the money to market and advertise to

people. Overall, there is strong rivalry in the market.



LEADING COMPANIES

China Life Insurance Company Limited

Table 6: China Life Insurance Company Limited: key facts

Head office: 12 Floor, China Life Plaza, No.16 Financial Street, Xicheng District, Beijing 100033, CHN

Telephone: 86 10 6363 2938

Fax: 86 10 6657 5112

Website: www.e-chinalife.com

Financial year-end: December

Ticker: 601628

Stock exchange: Shanghai

SOURCE: COMPANY WEBSITE M A R K E T L I N E

China Life Insurance Company Limited (China Life or 'the company') is a provider of life, annuities, accident and health

insurance products to individuals, primarily through agents operating in China, as well as other agencies located at

branch offices of banks, post offices and other organizations. It primarily operates in China.

The company operates through five business segments: individual life insurance business, short term insurance

business, group life insurance business, supplementary major medical insurance business, and other business.

The individual life insurance business segment relates primarily to the sale of long-term life insurance contracts and

universal life contracts which are mainly term life, whole life, endowment and annuity products, to individuals and

assumed individual reinsurance contracts.

The short-term insurance business segment relates primarily to the sale of short-term insurance contracts, which are

mainly the short-term accident and health insurance contracts.

The group life insurance business segment relates primarily to the sale of insurance contracts and investment contracts,

which are mainly term life, whole life and annuity products, to group entities.

China Life's supplementary major medical insurance business segment is engaged in the sale of supplementary major

medical insurance contracts to urban and rural residents.

The other business segment relates primarily to income and allocated cost of insurance agency business in respect of

the provision of services to China Life Insurance (Group) Company (CLIC), share of results of associates, income and

expenses of subsidiaries, unallocated income and expenditure of the group.

As of December 31, 2013, the company had about 177 million long-term in-force insurance policies offering individual

and group life, annuities, and health insurance protections. China Life had over 653,000 exclusive agents, 17,000 direct

sales representatives, 88,000 intermediary bancassurance outlets, and 54,000 sales representatives.

Key Metrics

The company recorded revenues of $67,446m in the fiscal year ending December 2013, an increase of 12.5% compared

to fiscal 2012. Its net income was $3,998m in fiscal 2013, compared to a net income of $1,820m in the preceding year.



Table 7: China Life Insurance Company Limited: key financials ($)

$ million 2009 2010 2011 2012 2013

Revenues 54,770.1 62,284.2 59,872.6 59,967.2 67,445.6

Net income (loss) 5,307.8 5,458.0 2,984.9 1,819.6 3,997.7

Total assets 197,278.0 226,834.3 255,683.3 306,533.9 318,483.4

Total liabilities 163,456.0 193,621.3 224,465.5 270,519.6 282,552.5

Employees 104,535 103,220 100,319 100,340 100,310

SOURCE: COMPANY FILINGS M A R K E T L I N E

Table 8: China Life Insurance Company Limited: key financials (CNY)

CNY million 2009 2010 2011 2012 2013

Revenues 339,290.0 385,838.0 370,899.0 371,485.0 417,812.0

Net income (loss) 32,881.0 33,811.0 18,491.0 11,272.0 24,765.0

Total assets 1,222,098.0 1,405,193.0 1,583,907.0 1,898,916.0 1,972,941.0

Total liabilities 1,012,577.0 1,199,445.0 1,390,519.0 1,675,815.0 1,750,356.0


Table 9: China Life Insurance Company Limited: key financial ratios

Ratio 2009 2010 2011 2012 2013

Profit margin 9.7% 8.8% 5.0% 3.0% 5.9%

Revenue growth 13.0% 13.7% (3.9%) 0.2% 12.5%

Asset growth 24.0% 15.0% 12.7% 19.9% 3.9%

Liabilities growth 24.7% 18.5% 15.9% 20.5% 4.4%

Debt/asset ratio 82.9% 85.4% 87.8% 88.3% 88.7%

Return on assets 3.0% 2.6% 1.2% 0.6% 1.3%

Revenue per employee $523,941 $603,412 $596,822 $597,640 $672,372

Profit per employee $50,776 $52,877 $29,754 $18,134 $39,854




Figure 12: China Life Insurance Company Limited: revenues & profitability


Figure 13: China Life Insurance Company Limited: assets & liabilities




Japan Post Group

Table 10: Japan Post Group: key facts

Head office: 3-2 Kasumigaseki 1-chome, Chiyoda ku, Tokyo 100 8798, JPN

Telephone: 81 3 3504 4411

Website: www.japanpost.jp

Ticker: March


Japan Post Group (Japan Post or 'the group') is engaged in the postal, postal savings, and postal life insurance

businesses. The group has its operations in Japan.

The group operates through four operating companies: Japan Post Insurance, Japan Post Bank, Japan Post, and Japan

Post Holdings.

Japan Post Insurance is an operating company within the Japan Post Group, which takes over services and functions

related to postal life insurance. The main business activities of the company include provision of insurance products and

various services, maintenance and management of insurance contracts, and asset management.

The group also provides one-stop logistics services that include transporting, storing, and sorting materials used in

business operations at post offices and their branch offices. Japan Post Bank undertakes the banking business within

the Japan Post Group. It provides various services such as deposits, fund transfers, and settlement services through a

network of branches and post offices in Japan.

The bank offers basic financial products and services that include liquid deposits as ordinary deposits and savings

deposits, time and savings deposits such as time deposits and TEIGAKU deposits, and transfer and settlement services

that include fund transfers and remittances. In addition, Japan Post Bank pays benefits from public pensions and sells

Japanese government bonds and investment trusts.

Japan Post undertakes the postal business and parcel delivery business within the Japan Post Group. The company has

set up post boxes throughout Japan and has commissioned Japan Post Network to handle mail and sell postage stamps,

postcards, and revenue stamps at nationwide post offices. Moreover, it has commissioned the sale of various postage

stamps and revenue stamps in Japan. It is also engaged in the sale and provision of postal, banking, and insurance

products and services. The company is involved in postal counter operations for regular mail, parcels, and other items,

sales of revenue stamps, bank agency services, intermediary services for financial products, solicitation of life and non-

life insurance, real estate business, merchandise sales, and operations consigned by local government entities.

Japan Post Holdings is a holding company that operates hospitals and hotels and also provides shared services to group

companies. The company has established 14 Teishin Hospitals around Japan that serve as corporate hospitals for the

group. Further, it constantly monitors group companies to ensure proper business operations.

Key Metrics

Japan Post Group is a privately owned group so full updated financials are unavailable however the group announced

annual revenue of JPN 15,849,185m (approximately $162,439 million) which translated to net incomes of JPN 562,753

m (approximately $5767m) for financial year ended march 2013.



Meiji Yasuda Life Insurance Company

Table 11: Meiji Yasuda Life Insurance Company: key facts

Head office: 1-1 Marunouchi 2-chome, Chiyoda-ku, Tokyo 100 0005, JPN

Telephone: 81 3 3283 8293

Fax: 81 3 3215 8123

Website: www.meijiyasuda.co.jp

Financial year-end: March


Meiji Yasuda Life Insurance Company (MYLI or "the company") is engaged in the sale of both life and non-life insurance

products through its subsidiaries: Meiji Yasuda General Insurance and Meiji Yasuda Insurance Service. The company

offers life insurance, annuities, medical and nursing care insurance, non-life insurance and investment advisory services.

The company operates in Asia, Europe and the Americas.

MYLI's international business concentrates on three core areas: international insurance, international insurance

networks, and international reinsurance with overseas insurance companies.

The company provides international insurance services in the US, Europe, and Asia. In the US, MYLI operates through

its subsidiary, Pacific Guardian Life Insurance Company, Limited (PGL) and Meiji Yasuda America Incorporated. PGL

provides life insurance for communities, mainly in Hawaii and the west coast. Meiji Yasuda America Incorporated offers

insurance services for the products of associated insurers to Japanese affiliates in the US, where it has offices in New

York and Los Angeles. In Europe, the company operates through its subsidiary, Meiji Yasuda Europe Limited. MYLI also

operates in Poland through its joint ownership in TU Europa S.A., and TUiR Warta S.A. In Asia, the company operates

through its subsidiaries and affiliates, including Founder Meiji Yasuda Life Insurance Co., Ltd., PT Avrist Assurance, and

Meiji Yasuda Asia Limited. Meiji Yasuda Asia Limited provides insurance broking business in China (Hong Kong). In

addition, Meiji Yasuda Asia works in cooperation with local insurance companies in Hong Kong and controls the

management of Mandatory Provident Funds (MPFs). The company also has offices in Seoul and Beijing.

MYLI's international insurance networks focus on insurance and annuity needs of the overseas branches and

subsidiaries of multinational corporations. The company has joined two networks: All Net, administered by the Allianz

Group, and the Swiss Life Network, run by Swiss Life.

The company through the international reinsurance business assumes the reinsurance of life, accident and health

insurance policies from insurance companies around the world.

MYLI's asset management business activity focuses on surplus management type of asset liability management, which

takes into account debt characteristics for each asset classification, internal reserves, necessary profits (losses),

insurance products, and sales strategies. The company also focuses on asset management risk control functions, raising

the ratio of assets that deliver stable profits, and curbing price fluctuation risk.

The company is also engaged in various business activities such as individual insurance marketing; general agent

marketing; group insurance marketing; and underwriting, policyholder services, and claim payments.

Key Metrics

The company recorded revenues of $48,593m in the fiscal year ending March 2013, an increase of .3% compared to

fiscal 2012. Its net income was $2,997m in fiscal 2013, compared to a net income of $2,426m in the preceding year.



Table 12: Meiji Yasuda Life Insurance Company: key financials ($)

$ million 2009 2010 2011 2012 2013

Revenues 38,790.5 43,072.2 62,686.1 48,465.1 48,593.3

Net income (loss) 1,253.1 1,463.3 1,770.4 2,426.0 2,997.0

Total assets 244,987.9 257,106.6 278,041.7 339,045.0 351,724.4



Table 13: Meiji Yasuda Life Insurance Company: key financials (¥)

¥ million 2009 2010 2011 2012 2013

Revenues 3,784,791.0 4,202,559.0 6,116,284.0 4,728,735.0 4,741,249.0

Net income (loss) 122,269.0 142,773.0 172,741.0 236,709.0 292,418.0

Total assets 23,903,468.0 25,085,889.0 27,128,525.0 33,080,624.0 34,317,745.0



Table 14: Meiji Yasuda Life Insurance Company: key financial ratios

Ratio 2009 2010 2011 2012 2013

Profit margin 3.2% 3.4% 2.8% 5.0% 6.2%

Revenue growth 5.1% 11.0% 45.5% (22.7%) 0.3%

Asset growth 0.0% 4.9% 8.1% 21.9% 3.7%


Debt/asset ratio 96.0% 94.4% 95.4% 91.8% 91.4%

Return on assets 0.5% 0.6% 0.7% 0.8% 0.9%




Figure 14: Meiji Yasuda Life Insurance Company: revenues & profitability


Figure 15: Meiji Yasuda Life Insurance Company: assets & liabilities




Nippon Life Insurance Company

Table 15: Nippon Life Insurance Company: key facts

Head office: 3 5 12 Imabashi, Chuo ku, Osaka 541 8501, JPN

Telephone: 81 6 6209 4500

Website: www.nissay.co.jp

Financial year-end: March


Nippon Life Insurance Company (Nippon or "the company") provides comprehensive insurance services across a broad

spectrum of needs, including life insurance, non-life insurance, medical and nursing care insurance and asset formation.

Nippon is a life insurance company which also provides non-life insurance and its business contains underwriting

insurance, asset management, proxy for other insurance companies and other financial institutions. Insurance business

consists of five companies, one subsidiary and four affiliates and insurance related business consists of eight

companies, three subsidiaries and five affiliates including Nissay Dowa General Insurance Company, Nippon Life

Insurance Company of America, Nissay-Greatwall Life Insurance, China, Corporate Pension Business Service, Nippon

Insurance Service, Nissay Tokyo Insurance Agency and NLI Insurance Agency. Affiliates in insurance-related operations

engage in corporate pension system management work, life insurance policy solicitation and non-life insurance agency

work, life insurance policy and non-life insurance policy confirmation work, as well as life insurance brokerage agency

work in the US.

Asset management-related subsidiaries engage in discretionary investment and advisory services, investment trust

consignment services, trust and custody services, venture capital, leasing, credit guarantee services, building

management, overseas real estate investment and finance agency services. Asset management and related business

consists of 30 companies including Nissay Asset Management Corporation, The Master Trust Bank of Japan, Nissay

Credit Guarantee, Nissay Leasing, Nissay Capital, Shinjuku NS Building and others. Nissay Asset Management is

involved in the joint development of investment products together with partners such as Putnam Investments, The

Northwestern Mutual of the US and NLI Research Institute.

Nippon's general affairs-related subsidiaries engage in temporary staffing services, mediation and sales of goods to

Nippon and its employees, printing and bookbinding services, software development, information processing services,

system administration and management, receiving agency, as well as survey and research services and consists of 24

companies including Nissay New Creation, Nissay Information Technology, Nissay Computer, Nissay Card Service and

Nissay Research Institute.

Nippon's underwriting insurance is based on life insurance business licenses. Assets, such as money received as

premiums, are mainly invested in loans, securities and real estate. As part of auxiliary and other business, Nippon acts

as a proxy for other insurance companies and other financial institutions. Under its credit guarantee business, Nippon

guarantees loans money as credit guarantees.

In addition, the company operates internationally through a number of subsidiary companies, including Nippon Life

Insurance Company of America, Nissay-Greatwall Life Insurance, NLI International, NLI Investments Europe, NLI

Commercial Mortgage Fund and NLI Insurance Agency.

Key Metrics

The company recorded revenues of $68,813m in the fiscal year ending March 2014, a decrease of 5.4% compared to

fiscal 2013. Its net income was $2,915m in fiscal 2014, compared to a net income of $2,159m in the preceding year.



Table 16: Nippon Life Insurance Company: key financials ($)

$ million 2010 2011 2012 2013 2014

Revenues 67,582.2 68,123.9 72,511.9 72,709.1 68,813.0

Net income (loss) 3,003.0 2,375.5 2,274.1 2,158.7 2,915.0

Total assets 498,964.8 511,941.6 524,412.4 565,395.2 585,120.4



Table 17: Nippon Life Insurance Company: key financials (¥)

¥ million 2010 2011 2012 2013 2014

Revenues 6,594,000.0 6,646,851.0 7,074,986.0 7,094,229.0 6,714,089.0

Net income (loss) 293,000.0 231,782.0 221,886.0 210,622.0 284,416.0

Total assets 48,684,000.0 49,950,141.0 51,166,914.0 55,165,611.0 57,090,200.0



Table 18: Nippon Life Insurance Company: key financial ratios

Ratio 2010 2011 2012 2013 2014

Profit margin 4.4% 3.5% 3.1% 3.0% 4.2%

Revenue growth (1.5%) 0.8% 6.4% 0.3% (5.4%)

Asset growth 5.8% 2.6% 2.4% 7.8% 3.5%


Debt/asset ratio 94.9% 95.8% 95.2% 92.7% 91.2%

Return on assets 0.6% 0.5% 0.4% 0.4% 0.5%




Figure 16: Nippon Life Insurance Company: revenues & profitability


Figure 17: Nippon Life Insurance Company: assets & liabilities




APPENDIX

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analysis from industry experts using highly complex modeling & forecasting tools, MarketLine’s in-house databases

provide the foundation for all related industry profiles

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profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market

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be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can

then be refined according to specific competitive, regulatory and demand-related factors

Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date



Industry associations

International Association of Insurance Supervisors

c/o Bank for International Settlements, CH-4002 Basel, CHE

Tel.: 41 61 225 7300

Fax: 41 61 280 9151

www.iaisweb.org

Banking, Finance and Insurance Commission Rue du Congrès 12-14, 1000 Brussels, BEL

Tel.: 32 2 220 5211

Fax: 32 2 220 5323

www.cbfa.be

Life Insurance Association of Japan Shin-Kokusai bldg. 3F, 3-4-1 Marunouchi, Chiyoda-ku, Tokyo 100-05, JPN

Tel.: 81 3 3286 2624

Fax: 81 3 3286 2630

www.seiho.or.jp

Insurance Association of China 88th Capital Time Square, East Chang'an Street West Beijing Xicheng District Beijing 1031, CHN

Fax: 86 10 8391 3779

www.iachina.cn/index1.htm

Related MarketLine research

Industry Profile

Life Insurance in the United States

Life Insurance in China

Life Insurance in Europe

Global Life Insurance

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