Annual Report 2010

Initiatives Aimed at Reinforcing Coverage of All Policyholders and CustomersRegarding the enforcement of new insurance law, we will continue to promote the development of attractive, easy-to-understand schemes that accurately grasp customers’ diverse insurance-related needs as we strive to provide even more finely tailored comprehensive life security plans. Furthermore, to respond to changes in the environment surrounding the agricultural sector, including growing interest in food safety and reliability, the JA Group as a whole will investigate the provision of insurance coverage relating to food and agriculture-related risks.Initiatives to Ensure Sound and Trustworthy ManagementRegarding our investment activity, as the majority of funds are in the form of a liability reserve that is built up to prepare for the payment of future insurance claims, we aim to secure stable, long-term earnings to ensure our ability to pay all insurance claims without fail. Zenkyoren therefore invests primarily in yen-denominated interest-bearing assets such as yen- denominated bonds. At the same time, we also make investments in equities and in foreign currency-denominated bonds, while paying heed to market trends and price fluctuation risk based on the characteristics of each asset class, as a means of increasing overall earnings. In fiscal 2009, Zenkyoren recorded an increase in unrealized gains on securities associated with an improvement in the asset management environment, and built up necessary reserves to prepare for the payment of future insurance claims. As a result, the solvency margin, a key indicator of financial soundness, improved to 952.7% from 860.4% in the previous fiscal year, which represents a sufficient level for future payment obligations. During fiscal 2010, Zenkyoren’s investments will continue to focus on high-grade yen-denominated interest-bearing assets such as Japanese government bonds. We will also strive to increase profitability by aiming to invest flexibly in equities and foreign currency-denominated bonds based on further strengthened risk management.Marking 10 Years of Federation IntegrationFiscal 2009 was a milestone year that marked the tenth year of the integration of the national federation (Zenkyoren) and prefectural federations in April 2000 and the creation of the National Mutual Insurance Federation of Agricultural Cooperatives (Zenkyoren). The integration of federations has eliminated previously overlapping functions and promoted more effective and efficient business activities.FutureZenkyoren will strive to ensure steady management into the future via the mission of mutual aid: “To contribute to the creation of regional communities that enable all cooperative members and customers to live comfortably and securely, based on the principle of mutual aid.” Zenkyoren will diligently fulfill its responsibility to provide explanations on a face-to-face basis when promoting business. We will also provide finely tailored insurance coverage and services, ensure strict legal compliance, and endeavor to provide services by conducting conscientious and sincere business activities.August 2010Shunichiro YasutaChairman of the Supervisory BoardYoshinori YokoiPresident of the Board of DirectorsRightLeft  ANNUAL REPORT 2010 03