As an Institutional Investor

Asset management of Meiji Yasuda

Fundamental Concepts on Asset Management

1. Basic Principle regarding Asset Management

Asset management undertaken by a life insurance company is an endeavor funded by insurance premiums entrusted to it by its customers. Accordingly, such company is expected to fulfill its mission of achieving long-term, stable returns through asset management. In this regard, Meiji Yasuda’s basic philosophy is to pursue the above mission via the use of a concept of ALM* that aims to secure stable and robust asset management returns over the long term while practicing sophisticated risk management to maintain and improve the soundness of its assets.

2. Basic Directions on Asset Management

To earn customer trust for our asset management endeavors, we are engaged in asset management in line with basic directions presented below.

(1) Stability

We place the utmost priority on securing stable profit through asset management, to this end having positioned domestic bonds and other Japanese yen-denominated interest-bearing assets as primary asset management vehicles.

(2) Profitability

Practicing a stringent risk management approach, we strive to secure a robust volume of profit that is commensurate with a level of risk associated with asset management. At the same time, we pay close attention to the characteristics of insurance liabilities by insurance product and other factors in the course of pursuing asset management focused on yielding stable returns.

(3) Soundness

To secure our ability to handle an ever more diverse range of asset management risks with increasing complexity, we work constantly to strengthen and upgrade our risk management structure, with the aim of maintaining and improving the soundness of our assets.

(4) Liquidity

As we make investment and financing judgments, we focus on maintaining the balance of high-liquidity assets at an appropriate level in order to secure our ability to ensure the smooth payment of insurance claims and benefits.

(5) Transparency

We strive to keep our asset management endeavors highly transparent to stakeholders by disclosing the status of asset management in an appropriate and easy-to-understand manner.

(6) Compliance

Acutely aware of the public nature of our operations as a life insurer, we maintain an internal management structure equipped with sufficient check-and-balance functions in place between business units charged with asset management to ensure that these business units act on robust corporate ethics.

* Asset Liability Management: An approach designed to provide for the comprehensive management of assets and liabilities.