Annual Report 2011

we will strengthen the ties with members and customers, and attract new members and customers, as we strive to enhance coverage.Initiatives to Increase the Level of Trust from our Members and CustomersWe reviewed a clerical processing system that complies with the Insurance Law enforced on April 1, 2010. Concerning our Alternative Dispute Resolution (ADR) system, we established the legally-stipulated complaint processing and dispute resolution measures, and are working to process claims and resolve disputes in line with these measures.Through the initiatives, we will continue to improve our service quality in order to raise our level of trustworthiness among all of our members and customers.Insurance Products DevelopmentTo help families to efficiently set aside tuition for their children to attend university, we created a Children’s Insurance product that offers both enhanced savings properties and insurance coverage, which we named “STEP.” We also expanded the coverage in our Building Endowment Insurance to include small-scale property damage. As we move forward, we will continue to develop and upgrade insurance structures in order to provide attractive and easily understood products that accurately meet the needs of our various members and customers.Asset Management InitiativesZenkyoren invested primarily in yen-denominated fixed-income assets such as yen-denominated bonds in order to secure stable, long-term earnings. At the same time, we also invested in equities and foreign currency-denominated bonds, while practicing thorough risk management, as a means of enhancing profitability. As a result, we secured a ¥791.2 billion gain.For fiscal 2011, Zenkyoren will maintain its basic policy of investing primarily in Japanese Government Bonds and other yen-denominated fixed-income assets of high grade, and also investing flexibly in equity and foreign currency-denominated bonds, while practicing thorough risk management, as a means of enhancing profitability.Initiatives to Ensure Sound and Trustworthy ManagementThe payment of claims for the Great East Japan Earthquake was the largest amount ever for a natural disaster. However, with our catastrophe reserves and reinsurance coverage, even after paying these claims Zenkyoren has sufficient payment capability. Moreover, Zenkyoren made an extraordinary provision for liability reserves to cope with the assumed interest on Comprehensive Life Insurance in the future. As a result, the solvency margin ratio, a key indicator of financial soundness, was 966.6%. Furthermore, we also made the decision to have JA members increase our capital by ¥600 billion in advance of expected revisions to regulatory oversight standards. We believe this will allow us to secure an even stronger financial position.In ClosingGoing forward, Zenkyoren will exercise due diligence in accountability based on its face-to-face communication, provide thorough insurance coverage, comply with laws and regulations and endeavor to conduct business in good faith in order to contribute to the building of lives and communities that enable members and customers to live comfortably and securely.August 2011Shunichiro YasutaChairman of the Supervisory BoardYoshinori YokoiPresident of the Board of DirectorsRightLeft  ANNUAL REPORT 2011 03