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Financial Strength

Accumulated Retained Surplus

Accumulated retained surplus (Sumitomo Life)*@increased 188.7 billion in fiscal 2016, to 1,617.0@billion ($14.4 billion).
We will continue to reinforce our long-term financial@strength by accumulating surplus while maintaining@a good balance with the distribution of dividends to@policyholders.

*Contingency reserves + Reserve for price fluctuation + Fund for price fluctuation allowance + Reserve for redemption of foundation funds + Reserve for fund redemption

Solvency Margin Ratio

The solvency margin ratio is the ratio of total solvency@margin to total risk amount, which quantifies various@risks. Our solvency margin ratio was 813.2%@(consolidated) at the end of fiscal 2016. The ratio far@exceeds 200%, the level which would require administrative-intervention in Japan.
In anticipation of the introduction of an economic value-based solvency regime, we are making efforts to control risk and accumulate retained surplus referring to the Solvency II Framework of Europe and the trend of international capital regulation.

European Embedded Value (EEV)

The Sumitomo Life Groupfs EEV increased 587.2 billion year on year to 3,523.8 billion, primarily due to the positive effect of rising interest rates as well as the successful results of the insurance business such as acquiring new business and securing earnings from policies in force.

*The EEV of the Group is calculated as follows: Sumitomo Lifefs EEV plus Medicare Lifefs EEV and Symetrafs EEV attributable to Sumitomo Lifefs equity stake in Medicare Life and Symetra less Sumitomo Lifefs carrying amount of equity of Medicare Life and Symetra. Medicare Life has been included in EEV of the Sumitomo Life Group since the end of March 2013, and Symetra has been included since the end of March 2016.
*The EEV at the end of fiscal 2016 is the amount restated using an ultimate forward rate.

Financial Strength Ratings

As of the end of June 2017, we have received A ratings from four rating agencies, namely A from Standard & Poorfs (S&P), A1 from Moodyfs, A+ from Rating and Investment Information (R&I), and A+ from Japan Credit Rating Agency (JCR).
Our current rating is at the highest level since 1997. This was mainly attributable to our extremely high competitiveness in the Japanese market.

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