Trust-building of JA's Mutual Insurance and Its Financial Health

JA's mutual insurance business had total assets worth ¥42,141 billion as of the end of FY 2003, of which 97.1% or ¥40,916 billion was invested as working assets. Safe and secure investments are made centered around the purchasing of public bonds and corporate bonds such as the national government bond as well as by making loans to blue chip corporations to secure stable revenues.

JA's mutual insurance puts aside liability reserves on steadily increasing scale in preparation for possible future payouts of insurance money etc. They amounted to ¥38,918.2 billion as of the end of FY 2003．

Furthermore, JA's mutual insurance earmarks each year, within its liability reserves, an increasing amount in the abnormal risk liability reserve to provide for abnormally large scale disasters etc., and also makes reinsurance contracts with reinsurance firms as a way of risk management against major natural calamities etc.

JA's mutual insurance business registered the ratio of solvency margin at 829.5% for FY2003, which is regarded as a health index of financial management in the community of insurance and mutual insurance businesses. Our ratio was much beyond 200% deemed adequate for sound management and this means that JA's mutual insurance business has enough ability to payout.

Source: "Annual Report 2004," ZENKYOREN

PDF File
INDEX