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February 13, 2014

Financial Results for the Nine Months Ended December 31, 2013
The Dai-ichi Frontier Life Insurance Co., Ltd. (the "Company"; President: Satoru Tsutsumi) announces its financial results for the nine months ended December 31, 2013.

[Contents]

1. 2. 3. 4. 5. 6. 7. 8.

Business Highlights Investment Results of General Account Non-Consolidated Balance Sheets Non-Consolidated Statements of Earnings Breakdown of Ordinary Profit (Fundamental Profit) Solvency Margin Ratio Separate Account Status Consolidated Financial Summary

P. 1 P. 3 P. 6 P. 7 P. 9 P. 10 P. 11 P. 11 P. 12

Reference: Exposure to Securitized Products and Subprime-related Investments

Please note that this is an unofficial translation of the original disclosure in Japanese.

1. Business Highlights
(1) Policies in Force and New Policies
Policies in Force As of March 31, 2013 Amount Number of (millions of Policies (thousands) yen) Individual insurance Individual annuities Group insurance Group annuities 15 368 133,326 2,103,035 As of December 31, 2013 Number of Policies
(thousands) % of March 31, 2013 total

Amount
(millions of yen) % of March 31, 2013 total

74 421 -

490.6 114.3 -

568,091 2,421,464 -

426.1 115.1 -

Note: Policy amount in force for individual annuities is equal to the sum of (a) the amount required to fund annuity payments when they commence for annuities that have not yet commenced paying out and (b) policy reserves for annuities that have commenced paying out.

New Policies Number of Policies


(thousands)
% of December 31, 2012 total

Amount
(millions of yen)
% of December 31, 2012 total

New Business

Net increase from conversions

Nine months ended December 31, 2013 Individual insurance Individual annuities Group insurance Group annuities Nine months ended December 31, 2012 Individual insurance Individual annuities Group insurance Group annuities
they commence.

59 73 6 49 -

909.4 149.8 -

445,524 399,674 54,107 251,108 -

823.4 159.2 -

445,524 399,674 54,107 251,108 -

Note: Amount of new policies (new business) for individual annuities is equal to the amount required to fund annuity payments when

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The Dai-ichi Frontier Life Insurance Co., Ltd.

(2) Annualized Net Premiums


Policies in Force
(millions of yen except percentages)

As of December 31, 2013 As of March 31, 2013 Individual insurance Individual annuities Total Medical and survival benefits New Policies
(millions of yen except percentages) % of March 31, 2013 total

9,298 228,272 237,571 -

42,756 257,755 300,511 -

459.8 112.9 126.5 -

Nine months ended December 31, 2012 Individual insurance Individual annuities Total Medical and survival benefits 3,690 36,033 39,723 -

Nine months ended December 31, 2013 34,285 45,813 80,098 -

% of December 31, 2012 total

929.1 127.1 201.6 -

Note: Annualized net premiums are calculated by multiplying the per-premium payments by a multiplier that depends on the premium payment terms. For single-premium contracts, the amount is calculated by dividing the premium by the duration of the policy.

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The Dai-ichi Frontier Life Insurance Co., Ltd.

2. Investment Results of General Account


(1) Asset Composition
(millions of yen except percentages)

Cash, deposits, and call loans Securities repurchased under resale agreements Deposit paid for securities borrowing transactions Monetary claims bought Trading account securities Money held in trust Securities Domestic bonds Domestic stocks Foreign securities Foreign bonds Foreign stocks and other securities Other securities Loans Real estate Deferred tax assets Others Reserve for possible loan losses Total Foreign currency-denominated assets

As of March 31, 2013 Carrying value % 53,667 6.6 1,978 0.2 32,179 3.9 691,648 84.6 322,321 39.4 369,327 45.2 364,694 44.6 4,632 0.6 38,035 4.7 (1) (0.0) 817,509 100.0 325,664 39.8

As of December 31, 2013 Carrying value % 72,779 5.6 6,041 0.5 26,744 2.0 1,160,310 88.6 548,087 41.9 587,713 44.9 583,716 44.6 3,996 0.3 24,510 1.9 43,757 3.3 (1) (0.0) 1,309,632 100.0 556,818 42.5

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The Dai-ichi Frontier Life Insurance Co., Ltd.

(2) Fair Value Information on Securities (securities with fair value except trading securities)
(millions of yen)

Book value As of December 31, 2013 Bonds held to maturity Policy-reserve-matching bonds Stocks of subsidiaries and affiliates Securities available for sale Domestic bonds Domestic stocks Foreign securities Foreign bonds Foreign stocks and other securities Other securities Monetary claims bought Certificates of deposit Others Total Domestic bonds Domestic stocks Foreign securities Foreign bonds Foreign stocks and other securities Other securities Monetary claims bought Certificates of deposit Others As of March 31, 2013 Bonds held to maturity Policy-reserve-matching bonds Stocks of subsidiaries and affiliates Securities available for sale Domestic bonds Domestic stocks Foreign securities Foreign bonds Foreign stocks and other securities Other securities Monetary claims bought Certificates of deposit Others Total Domestic bonds Domestic stocks Foreign securities Foreign bonds Foreign stocks and other securities Other securities Monetary claims bought Certificates of deposit Others Financial Instruments and Exchange Law. 295,732 382,795 194,630 186,165 186,165 2,000 678,527 317,295 359,232 359,232 2,000 543,821 613,092 307,677 274,822 274,822 24,592 6,000 1,156,913 543,393 582,927 582,927 24,592 6,000 -

Fair value

Gains (losses) Gains (794) 5,442 4,693 789 789 (82) 41 4,647 5,983 (1,294) (1,294) (82) 41 3,805 10,467 5,025 5,462 5,462 (21) 14,272 5,818 8,475 8,475 (21) 3,649 9,033 5,231 3,760 3,760 41 12,683 6,926 5,714 5,714 41 4,503 11,096 5,311 5,784 5,784 15,599 6,131 9,467 9,467 Losses 4,444 3,591 537 2,971 2,971 82 8,035 943 7,009 7,009 82 697 629 285 322 322 21 1,327 313 992 992 21 -

543,026 618,534 312,371 275,612 275,612 24,510 6,041 1,161,561 549,377 581,632 581,632 24,510 6,041 299,537 393,262 199,656 191,627 191,627 1,978 692,799 323,113 367,707 367,707 1,978 -

Note: The table above includes assets which are considered appropriate to handle as securities as defined in the

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The Dai-ichi Frontier Life Insurance Co., Ltd.

*Book values of securities for which it is not practicable to determine fair value are as follows: Not applicable.

(3) Fair Value Information on Money Held in Trust


(millions of yen)

As of December 31, 2013 As of March 31, 2013 trustees of money held in trust.

Carrying value on the balance sheet 26,744 32,179

Gains (losses) Fair value Gains 26,744 32,179 (16,435) (18,914) Losses 16,435 18,914

Note: 1. Fair value equivalents appearing in this table are based on prices calculated using a reasonable method by 2. Gains (losses) are valuation gains (losses) that were included in the statement of earnings.

*Information on money held in trust for investment purposes is as follows:


(millions of yen)

As of March 31, 2013

As of December 31, 2013

Valuation gains Valuation gains Carrying value on Carrying value on (losses) included in the (losses) included in the the balance sheet statements of earnings the balance sheet statements of earnings

Money held in trust for investment purposes

32,179

(18,914)

26,744

(16,435)

*Information on money held in trust classified as held-to-maturity, policy-reserve-matching, or other money held in trust are as follows:
Not applicable.

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The Dai-ichi Frontier Life Insurance Co., Ltd.

3. Non-Consolidated Balance Sheets


(millions of yen)

As of March 31, 2013 (Summarized) Amount (ASSETS) Cash and deposits Call loans Monetary claims bought Money held in trust Securities [Government bonds] [Local government bonds] [Corporate bonds] [Foreign securities] Tangible fixed assets Intangible fixed assets Reinsurance receivables Other assets Reserve for possible loan losses Total assets [ [ [ [ 37,167 25,400 1,978 32,179 2,236,570 113,020 ] 9,116 ] 200,183 ] 372,912 ] 39 1 27,968 11,893 (1) 2,373,197

As of December 31, 2013 Amount 58,230 30,000 6,041 26,744 2,937,499 [ [ [ [ 283,794 ] 8,005 ] 256,288 ] 591,851 ] 64 1 25,007 19,021 (1) 3,102,609
(millions of yen)

As of March 31, 2013 (Summarized) Amount (LIABILITIES) Policy reserves and others Reserves for outstanding claims Policy reserves Reinsurance payable Other liabilities Corporate income tax payable Other liabilities Reserve for employees' retirement benefits Reserve for retirement benefits of directors, executive officers and corporate auditors Reserve for price fluctuations Deferred tax liabilities Total liabilities (NET ASSETS) Capital stock Capital surplus Legal capital surplus Retained earnings Other retained earnings Retained earnings brought forward Total shareholders' equity Net unrealized gains on securities, net of tax Total of valuation and translation adjustments Total net assets Total liabilities and net assets -6117,500 67,500 67,500 (127,730) (127,730) (127,730) 57,269 7,246 7,246 64,515 2,373,197 2,269,986 1,539 2,268,447 847 33,742 101 33,641 103 6 775 3,220 2,308,682

As of December 31, 2013 Amount 2,995,430 2,069 2,993,361 1,021 55,042 22 55,019 131 9 1,317 1,674 3,054,626 117,500 67,500 67,500 (140,785) (140,785) (140,785) 44,214 3,767 3,767 47,982 3,102,609

The Dai-ichi Frontier Life Insurance Co., Ltd.

. Non-Consolidated Statements of Earnings


(millions of yen)

Nine months ended December 31, 2012 Amount ORDINARY REVENUES Premium and other income [Premium income] Investment income [Interest and dividends] [Gains on sale of securities] [Gains on investment in separate accounts] Other ordinary revenues [Reversal of reserves for outstanding claims] ORDINARY EXPENSES Benefits and claims [Claims] [Annuities] [Benefits] [Surrender values] [Other refunds] Provision for policy reserves and others Provision for reserves for outstanding claims Provision for policy reserve Investment expenses [Interest expenses] [Losses on money held in trust] [Losses on investment in trading securities] [Losses on sale of securities] [Derivative transaction losses] Operating expenses Other ordinary expenses ORDINARY LOSS EXTRAORDINARY LOSSES Provision for reserve for price fluctuations Other extraordinary losses Loss before income taxes Corporate income taxes - current Total of corporate income taxes Net loss for the period [ [ [ [ [ [ [ [ [ [ [ [ [ [ [ 425,891 321,483 286,383 ] 104,392 9,369 ] 2,987 ] 74,375 ] 15 14 ] 438,954 108,514 54 ] 499 ] 10,288 ] 49,833 ] 1,081 ] 290,032 290,032 25,637 0 ] 13,534 ] 3,749 ] 3 ] 7,888 ] 13,723 1,047 13,062 294 285 9 13,356 63 63 13,420 [ [ [ [ [ [ [ [ [ [ [ [ [ [ [

Nine months ended December 31, 2013 Amount 1,036,498 899,062 810,933 ] 137,434 15,133 ] 8,034 ] 114,267 ] 1 - ] 1,048,903 249,984 1,080 ] 494 ] 14,339 ] 135,159 ] 2,880 ] 725,444 530 724,914 36,097 0 ] 16,435 ] 2,644 ] 114 ] 14,437 ] 33,970 3,406 12,405 542 542 0 12,947 106 106 13,054

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The Dai-ichi Frontier Life Insurance Co., Ltd.

Notes to the Non-Consolidated Balance Sheet 1. 2. As of December 31, 2013 Securities lent under lending agreements are included in the balance sheets. The total balance of securities lent as of December 31, 2013 was 10,366 million yen. Amounts of financial instruments recorded on the balance sheet, their fair values, and differences between the two are as follows:
(millions of yen) Carrying amount on balance sheet (1) Cash and deposits (2) Call loans (3) Monetary claims bought (4) Money held in trust (5) Securities (a) Trading securities (b) Policy-reserve-matching bonds (c) Other securities Assets total Derivative transactions (a) Derivative transactions to which hedge accounting is not applied Derivative transactions total 58,230 30,000 6,041 26,744 2,937,499 1,781,184 543,821 612,493 3,058,516 Fair value 58,230 30,000 6,041 26,744 2,936,704 1,781,184 543,026 612,493 3,057,721 Difference (794) (794) (794)

(8,571) (8,571)

(8,571) (8,571)

Note: Derivative transactions include those attributable to money held in trust and foreign securities (investment trusts). Net derivative assets and liabilities arising from derivative transactions are reported as a net value. A negative total indicates a net liability. Fair values of financial instruments are calculated as follows: (a) Cash and deposits Deposits are recorded at book value as all deposits have no maturities and their book values approximate their fair values. (b) Call loans Since all call loans are close to due date and their fair value is close to carrying amounts, fair value of call loans is based on their carrying amount. (c) Monetary claims bought Fair value of monetary claims bought is based on the reasonably calculated price. (d) Money held in trust Information on the fair value of derivative transactions attributable to money held in trust appears below in "(f) Derivative transactions". (e) Securities Fair value of bonds is based on the price on stock exchanges. Fair value of mutual funds is based on unit price. (f) Derivative transactions For foreign exchange forward contracts, futures market prices on the book closing date are used as fair value. For currency swap contracts, amounts discounted to present value are used as fair value. For total return swap contracts, amounts calculated by using indices on the book closing date are used as fair value. For futures transactions and other market traded instruments, securities exchange market closing prices are used as fair value. (Additional Information) Effective the three months ended June 30, 2013, in order to conduct appropriate duration control, taking into account debt situation, and thus promote more sophisticated ALM, the Company added individual insurance and annuities (JP yen-denominated, long term) as a new sub-group for insurance products subject to the policy reserve matching bonds. As a result, the sub-groups are: (a) Individual insurance and annuities (JP yen-denominated, short term) (b) Individual insurance and annuities (JP yen-denominated, long term) (c) Individual insurance and annuities (US dollar-denominated) (d) Individual insurance and annuities (AUS dollar-denominated) with the exception of certain types and policies. This addition did not have any impact on profits or losses of the Company for the nine months ended December 31, 2013. Notes to the Non-Consolidated Statements of Earnings Nine months ended December 31, 2013 1. Net loss per share for the nine months ended December 31, 2013 was 7,056,361.89yen. Fully diluted net loss per share is not reported because the Company has no residual shares. 2. Depreciation for the nine months ended December 31, 2013 was 28 million yen.

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The Dai-ichi Frontier Life Insurance Co., Ltd.

5. Breakdown of Ordinary Profit (Fundamental Profit)


(millions of yen)

Nine months ended December 31, 2012 Fundamental profit Capital gains Gains on money held in trust Gains on investment in trading securities Gains on sale of securities Derivative transaction gains Foreign exchange gains Others Capital losses Losses on money held in trust Losses on investment in trading securities Losses on sale of securities Losses on valuation of securities Derivative transaction losses Foreign exchange losses Others Net capital gains (losses) Fundamental profit plus net capital gains (losses) Other one-time gains Reinsurance income Reversal of contingency reserve Reversal of specific reserve for possible loan losses Others Other one-time losses Ceding reinsurance commissions Provision for contingency reserve Provision for specific reserve for possible loan losses Provision for specific reserve for loans to refinancing countries Write-down of loans Others Other one-time profits (losses) C Ordinary profit (loss) A+B+C Note: 1. Fundamental profit includes the amount below. B A+B A 21,093 20,637 2,987 17,650 40,893 13,534 3,749 3 7,888 15,718 (20,255) 837 13,900 13,900 (13,900) (13,062) Nine months ended December 31, 2012 Adjustment of the portion valued in exchange rate fluctuations of foreign-currency denominated insurance's liability 2. Other capital gains include the amount below. Nine months ended December 31, 2012 Adjustment of the portion valued in exchange rate fluctuations of foreign-currency denominated insurance's liability 3. Other capital losses include the amount below. Nine months ended December 31, 2012 Adjustment of the portion valued in exchange rate fluctuations of foreign-currency denominated insurance's liability 15,718 15,718

Nine months ended December 31, 2013 25,619 10,585 8,034 2,550 35,613 16,435 2,644 114 14,437 1,982 (25,028) 590 12,995 12,995 (12,995) (12,405) Nine months ended December 31, 2013 (2,550)

Nine months ended December 31, 2013 2,550

Nine months ended December 31, 2013 -

4. Gains (losses) on money held in trust and gains (losses) on investment in trading securities are attributable to investments in derivative financial instruments (including investments in money held in trust, foreign securities (investment trusts) ) for the purpose of mitigating the guaranteed minimum benefit risk on individual variable annuities.

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The Dai-ichi Frontier Life Insurance Co., Ltd.

6. Solvency Margin Ratio


(millions of yen) As of March 31, 2013 As of December 31, 2013

Total solvency margin Common stock, etc Reserve for price fluctuations Contingency reserve General reserve for possible loan losses Net unrealized gains on securities (before tax) 90%* Net unrealized gains (losses) on real estate 85%* Policy reserves in excess of surrender values Qualifying subordinated debt

(A)

219,637 57,269 775 92,403 1 9,420 59,768 -

221,605 44,214 1,317 105,399 1 4,898 65,774 60,650 25 8,920 25,241 24,721 1,767

Excluded portion of policy reserves in excess of surrender values and qualifying subordinated debt Excluded items Others Total Risk Insurance risk 3rd sector insurance risk Assumed investment yield risk Investment risk Guaranteed minimum benefit risk Business risk Solvency margin ratio (A) (1/2) (B)
* Multiplied by 100% if losses.
2 2 R 1 R 8 R 2R 3R 7 R 4

(B)

46,798 5 4,330 18,611 22,493 1,363

R1 R8 R2 R3 R7 R4

100

938.6%

730.7%

Note: 1. The figures as of March 31, 2013 are calculated based on Articles 86 and 87 of the Enforcement Regulations of Insurance Business Act, and Announcement No.50, Ministry of Finance, 1996. The figures as of December 31, 2013 are calculated by using the method which is deemed appropriate taking the regulations and announcement above into account. 2. Guaranteed minimum benefit risk is calculated by the standard method.

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The Dai-ichi Frontier Life Insurance Co., Ltd.

7. Separate Account Status


(1) Separate Account Assets by Product
(millions of yen) As of March 31, 2013 Individual variable insurance Individual variable annuities Group annuities Separate account total 2,985 1,555,229 1,558,215 As of December 31, 2013 2,998 1,791,500 1,794,498

(2) Policies in Force


A. Individual Variable Insurance
(millions of yen except number of policies)

As of March 31, 2013 Number of policies (thousands) Variable insurance (defined term type) Variable insurance (whole life type) Total 0 0 Amount 3,081 3,081

As of December 31, 2013 Number of policies (thousands) 0 0 Amount 2,979 2,979

Notes: Policy amounts not placed into separate accounts as of the end of the fiscal period are included in policies in force.

B. Individual Variable Annuities


(millions of yen except number of policies)

As of March 31, 2013 Number of policies (thousands) Individual variable annuities 266 Amount 1,569,891

As of December 31, 2013 Number of policies (thousands) 302 Amount 1,804,296

Notes: 1. Total policy amount in force for individual annuities is equal to the sum of (a) the amount required to fund annuity payments when they commence for annuities that have not yet commenced paying out and (b) policy reserves for annuities that have commenced paying out. 2. Policy amounts not placed into separate accounts as of the end of the fiscal period are included in policies in force.

8. Consolidated Financial Summary


Not applicable.

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The Dai-ichi Frontier Life Insurance Co., Ltd.

Reference: Exposure to Securitized Products and Subprime-related Investments


The Company discloses its exposure to securitized products and subprime-related investments, based on the "LeadingPractice Disclosures for Selected Exposures" included in the Financial Stability Forum (FSF) report announced in April 2008. The Company's exposure to securitized and subprime-related products is as follows: The Company held no direct investments in subprime-related products as of December 31, 2013. The Company defines "unrealized gains (losses)" as fair value less book value and "realized gains (losses)" as total of gains (losses) on sales and impairment losses. The Company's exposure to securitized products 1. Special-Purpose Entities (SPEs, as of December 31, 2013) The Company holds no investments in SPEs. 2. Collateralized Debt Obligation (CDOs, as of December 31, 2013) The Company holds no investments in CDOs. 3. Other Subprime/Alt-A Exposure (as of December 31, 2013) The Company holds no securitized products backed by subprime/Alt-A exposure. 4. Commercial Mortgage-Backed Securities(CMBS, as of December 31, 2013) The Company holds no commercial mortgage-backed securities. 5. Leveraged Finance (as of December 31, 2013) The Company holds no leveraged finance products. 6. Others (as of December 31, 2013) Fair value Credit-linked note Unrealized gains (losses) 13,864 364 (millions of yen) Realized gains (losses) -

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The Dai-ichi Frontier Life Insurance Co., Ltd.