This report has been prepared to present information about our management policies, an overview of operations, financial position and other topics in a simple and clear manner.We hope that this publication will help to increase your understanding of the JA mutual-aid business.About a year and a half has passed since the Great East Japan Earthquake struck and caused extensive devastation.Furthermore, in fiscal 2011, the year ended March 31, 2012, Japan experienced a large number of natural disasters, notably Typhoons No. 12 and No. 15.With regard to the Great East Japan Earthquake, Zenkyoren has been making every effort to deliver insurance payments and security as quickly as possible. Measures have included providing operational support for damaged JA, dispatching damage assessors from throughout Japan to conduct damage surveys, implementing special procedures for policyholders directly affected by the disaster, and opening consultation centers for policyholders who were forced to live far away in evacuation from their affected communities.As a result, total claims paid amounted to over ¥890 billion as of March, 31, 2012. These claims were paid out from premiums received from policyholders, and policy reserves funded by those premiums. We believe that this result demonstrates the true worth of our business activities, which are closely rooted in communities, as well as the fruition of our business philosophy of “mutual aid.”Through our response to the Great East Japan Earthquake, we were strongly reminded in these ways of the importance of the mission of the JA mutual-aid business, along with our immense social responsibilities. We will endeavor to establish an even stronger position to ensure that we can fulfill those responsibilities even if another major disaster strikes.The United Nations has declared 2012 International Year of Cooperatives. We believe it is necessary to take advantage of this opportunity to join forces and engage in “mutual aid” socioeconomic activities aimed at providing stability to people’s lives and building a peaceful society.For more than 60 years since commencing business activities, Zenkyoren has conducted business with the aim of expanding its circle of mutual assistance. Guided by this principle of “mutual aid among all members,” Zenkyoren will continue to provide comprehensive coverage of life, homes and automobiles, and ensure sound management, with the view to conducting business activities in good faith.Initiatives and Business Developments in Fiscal 2011Business DevelopmentsIn terms of business developments in fiscal 2011, we rigorously provided explanations of policy details to policyholders and conducted our coverage inspection program through follow-up visits to all policyholders. At the same time, we implemented special measures regarding the provision of building and home coverage. Through these and other measures, we strove to enhance activities to provide coverage of life, homes and automobiles.We will also continue in fiscal 2012 to vigorously conduct our coverage inspection program. Our goal is to provide thorough insurance coverage to all of our customers.Enhancing Service and ReliabilityWe have conducted a review of application and payment examinations to improve their appropriateness and promptness, while revising policy applications and other forms. In addition, we worked to strengthen appropriate clerical processing by explaining and issuing explanatory sheets for important matters, and implementing a system designed to confirm customer intentions. These efforts were directed at bolstering our compliance system.Insurance Products DevelopmentAs 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.Social Contribution ActivitiesWe will continue to implement the Community Safety and Security Project, an initiative to reduce traffic accidents in communities, with the aim of helping to build regional societies where people can lead comfortable lives with greater security.Asset Management InitiativesIn regard to asset management, Zenkyoren secured stable, long-term earnings by continuing to invest primarily in long-term Japanese Government Bonds, from the standpoint of implementing comprehensive asset-liability management (ALM).For fiscal 2012, Zenkyoren will continue to improve profitability by thoroughly managing risk on the basis of investing primarily in Japanese Government Bonds and other yen-denominated fixed-income assets of high credit quality.Initiatives to Ensure Sound ManagementThrough overseas reinsurance coverage, increased provisions to catastrophe reserves, and other means, Zenkyoren has secured sufficient payment capability even after payment of claims. In addition, we increased our capital by around ¥600 billion mainly in preparation for the expected introduction of regulatory oversight standards based on fair value.In ClosingGoing forward, Zenkyoren will continue to endeavor to conduct business carefully and 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 2012MESSAGE FROM THE MANAGEMENTZenkyoren Will Continue to Deliver Security and Satisfaction Closely Rooted in Communities Based on the Principle of Mutual AidShunichiro YasutaChairman of the Supervisory BoardYoshinori YokoiPresident of the Board of Directors  ANNUAL REPORT 2012 01