Current Situation of Asset ManagementTo secure and enhance stable earnings over the long term, we focused our investment mainly on Japanese Government Bonds and other high grade, yen-denominated assets. Regarding investment in stocks, foreign-currency- denominated bonds and other equities, we took steps to improve earnings through the acquisition and sale of these equities based on proprietary research and analysis of potential growth of the companies and price valuation. (See the graphs)International InvestmentsIn its overseas investments, Zenkyoren pays extremely close attention to exchange risks, country risks and other risks, as we invest primarily in foreign-currency-denominated bonds and foreign equities and in yen-denominated loans and bonds for foreign governments. Our subsidiaries in New York (ZAMA) and London (ZEL) undertake support activities related to securities investments, overseas investments, and so on.Zenkyoren Asset Management of America, lnc. (ZAMA), New YorkZenkyoren Europe Limited (ZEL), LondonREINSURANCEReinsurance ActivitiesAs part of natural disaster risk management, risks deriving from Building Endowment policies, Cooperative-Owned Building Fire policies, and retrocession risks from the National Agricultural Insurance Association are ceded to multiple reinsurers.The Reinsurance Panel in Zenkyoren is stringently selected considering the following elements:• Past performance of each reinsurance company• Credit ratings by third-party rating agencies• Financial strengthUtilizing reinsurance diversifies the risk portfolio, contributing to firm and stable business operations.  ANNUAL REPORT 2012 07