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Financial Strength

Accumulated Retained Surplus

Accumulated retained surplus (Sumitomo Life)* increased ¥109.8 billion in fiscal 2018, to ¥1,912.7 billion ($17.2 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 915.6% (consolidated) at the end of fiscal 2018. 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’s EEV at the end of fiscal 2018 decreased ¥79.8 billion year on year to ¥3,699.0 billion primarily due to negative impacts from lower domestic interest rate and stock prices, despite the positive results of the insurance business such as acquiring new policies and securing earnings from policies in force.

*The EEV of the Group is calculated as follows: Sumitomo Life’s EEV plus Medicare Life’s EEV and Symetra’s EEV, less Sumitomo Life’s carrying amount of equity of Medicare Life and Symetra. Symetra has been included in Sumitomo Life Group’s EEV since the end of March 2016.
*The EEV stated after the end of March 2016 is the amount after applying an ultimate forward rate.