Annual Report 2020 Year Ended March 31, 2020 Management Philosophy, Management Policy and Code of Conduct

Annual Report 2020 Year ended March 31, 2020 Management Philosophy, Management Policy and Code of Conduct Our Management Philosophy is a determination that all executives and employees will work together to be always close at hand and to protect the well-being of every one of our customers. Keeping this Management Philosophy in mind, we will work to realize sustainable growth and remain a company that is trusted and loved by our customers. Management Be a trustful partner for people, always being close at Philosophy hand and endeavoring to protect their well-being. We aim to become the No. 1 Japanese insurance company selected by customers. Management 1. We are always close to people’s lives, offering easy-to-understand products and high- Policy quality services. 2. We always ensure that employees who have contact with our customers make full use of their strengths to offer better customer services. 3. We create a working environment in which all employees can develop their talents and work with energy and vitality. 4. We practice sound management based on strong corporate governance, constantly creating new value to achieve sustainable growth. 5. We actively contribute to health promotion, environmental protection, and the development of local communities and society as a whole. 6. We work to communicate closely with all stakeholders. 1. We put the customer first in everything we do. Code of 2. We offer comprehensive and heartfelt services by working together closely with our Conduct business partners. 3. We always improve ourselves, embarking on new challenges and contributing to the development of the company and society. 4. We leave no stone unturned in ensuring compliance based on a strong ethical sense of the company as a responsible member of society. 5. We respect human rights and create a diverse and inclusive working environment. CONTENTS 02 To Our Stakeholders 53 Corporate Governance 53 Corporate Governance Systems 03 Solicitation Quality Issues 61 Compliance at the Company 64 Elimination of Antisocial Forces 65 Education for Sales Personnel and Insurance Solicitation 10 Message from the CEO Agents 15 Measures Amid the COVID-19 Pandemic 66 Risk Management Systems 68 Customer-first Business Operations 68 Stakeholder Engagement 16 About Japan Post Insurance 16 Value Creation Process 71 Corporate Information 18 Our Position within the Japan Post Group 20 Our History 89 Financial Statements 22 Our Business Model 24 Our Features 26 Financial and Non-Financial Highlights 29 External Evaluation 29 Support for Initiatives 30 Major Financial and Non-Financial Data 32 Sustainable Value Creation 32 Medium-term Management Plan 34 Key Strategies 40 Strengthening the Management Base 46 Realizing a Sustainable Society Editorial Policy This Annual Report presents an overview of the Company, our business strategies, management issues and other information in an integrated manner that includes both financial and non-financial information in order to communicate clearly to our stakeholders the initiatives undertaken by Japan Post Insurance for sustainable value creation. This Annual Report was compiled with reference to the “International Integrated Reporting Framework” issued by the International Integrated Reporting Council (IIRC) and the “Guidance for Integrated Corporate Disclosure and Company- Investor Dialogue for Collaborative Value Creation” issued by the Ministry of Economy, Trade and Industry. We also issue this Annual Report as disclosure materials prepared based on Article 111 of the Insurance Business Act. Japan Post Insurance Co., Ltd. has been commissioned by the Organization for Postal Savings, Postal Life Insurance and Post Office Network (the “Management Network”), which succeeded the rights and obligations of the Postal Life Insurance policies enrolled in before September 2007, to engage in insurance policy operations. As of April 1, 2019, the Management Network changed its name from the Management Organization for Postal Savings and Postal Life Insurance (the “Management Organization”). Notes: 1. This report is intended to provide information to the public and is not intended to constitute a solicitation to invest in stock or other marketable securities of Japan Post Insurance Co., Ltd. or its subsidiaries (the “Group”). This report contains forward-looking statements regarding the outlook and targets of the Group, which are based on information available when the report was prepared or on Japan Post Insurance’s expectations derived from projections or assumptions made at the time of the report’s preparation. Please note that these forward-looking statements are subject to a broad range of risks and uncertainties, and actual results might vary materially from the statements contained in this report as a result of changes in the economic conditions or business trends, revisions to laws or regulations, effects of large-scale disasters, fluctuations in the value of assets owned, harmful rumors or false information. 2. Unless otherwise noted, statements in this report are based on information available at the time of preparing the report. 3. Unless otherwise noted, financial figures in this report are reported on a consolidated basis. Unless the context indicates otherwise, references in this report to “we,” “us,” “our,” “the Company” or similar terms refer to Japan Post Insurance Co., Ltd. Annual Report 2020 1 To Our Stakeholders We will devote ourselves entirely to truly putting our customers first and regaining their trust as quickly as possible. I would like to express my sincere gratitude for your kind support of JAPAN POST INSURANCE Co., Ltd. I would also like to extend my deepest sympathies and condolences to those who have been affected by the outbreak of coronavirus disease (COVID-19). We received orders to partially suspend business (from January 1, 2020 to March 31, 2020) and improve business based on the Insurance Business Act from the Financial Services Agency of Japan on December 27, 2019 due to inappropriate insurance solicitation for our products, and we submitted a business improvement plan to the Financial Services Agency on January 31, 2020. We deeply apologize to all of our customers and other stakeholders for the substantial concern caused by this situation. We take these administrative dispositions very seriously and place top priority on the task of carrying out the business improvement plan as we work to establish customer-first business operations. As President and CEO, I would like to set an example for all employees so as to encourage all-out efforts to build a new JAPAN POST INSURANCE that will implement customer-first business operations thoroughly in order to regain the trust of customers and other stakeholders. We sincerely appreciate your continued support. Director and President, CEO, Representative Executive Officer 2 JAPAN POST INSURANCE Solicitation Quality Issues at the Company Overview and Circumstances of the Issues Following an internal investigation into the handling of customers’ revisions of insurance coverage for products of Japan Post Insurance Co., Ltd., it was discovered that in some cases, revisions were carried out in a manner that might have been disadvantageous to customers, and not in line with their intentions. We take this incident very seriously and have been working Company-wide to investigate and reinstate policies to improve solicitation quality. In connection with these issues, together with Japan Post Holdings Co., Ltd. and Japan Post Co., Ltd., we established a Special Investigation Committee comprised only of disinterested external experts in July 2019. The Committee thoroughly investigated the facts and underlying causes and made recommendations for improvement. Meanwhile, we reported the results of the investigations and future activities of the Japan Post Group. In addition, we received orders from the Financial Services Agency of Japan to suspend business and improve business operations based on Article 132-1 of the Insurance Business Act on December 27, 2019, and during the period from January 1, 2020 to March 31, 2020, we suspended policy solicitations and entering into new insurance policies, except in response to voluntary requests from our customers, while we established a business improvement plan aimed at ensuring proper business operations and protecting policyholders, which was submitted to the Financial Services Agency on January 31, 2020. Since then, we regularly report on the progress of improvement to the Financial Services Agency. We take these administrative dispositions very seriously, and position the implementation of the business improvement plan as our most important management issue as we will make Company-wide efforts to regain customers’ trust. Rather than limiting ourselves to this business improvement plan, we will thoroughly implement the initiatives necessary to restore trust in the Japan Post Group and achieve customer-first business operations by seeking advice from outside experts and subjecting ourselves to stringent evaluation from a fair and neutral standpoint. Administrative Dispositions by the Financial Services Agency against Japan Post Insurance The Company received administrative dispositions (orders to suspend business and improve business operations) based on Article 132-1 of the Insurance Business Act from the Financial Services Agency on December 27, 2019. The overview of the administrative dispositions is as follows. Overview of the administrative dispositions Administrative dispositions (orders to suspend

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