Investment in Securities (Tables)

12 Months Ended

Mar. 31, 2022

Investment in securities as of March 31, 2021 and 2022 consists of the following:


	Millions of yen
	2021		2022
Equity securities*	¥	540,082	¥	560,643
Trading debt securities		2,654		2,503
Available-for-sale debt securities		2,003,917		2,174,891
Held-to-maturity debt securities		113,790		114,312

Total	¥	2,660,443	¥	2,852,349

The amount of assets under management of variable annuity and variable life insurance contracts included in equity securities were ¥249,830 million and ¥185,115 million as of March 31, 2021 and 2022, respectively. The amount of investment funds that are accounted for under the equity method included in equity securities were ¥82,420 million and ¥ 90,650 million as of March 31, 2021 and 2022, respectively. The amount of investment funds and others elected the fair value option included in equity securities were ¥4,940 million and ¥11,709 million as of March 31, 2021 and 2022, respectively.

Summary of Impairment and Downward or Upward Adjustment Due to Changes of Observable Price

The following tables provide information about impairment and upward or downward adjustments resulting from observable price changes as of March 31, 2021 and 2022, and for fiscal 2021 and 2022.


	Millions of yen
	March 31, 2021							Fiscal Year ended March 31, 2021
	Carrying value		Accumulated impairments and downward adjustments			Accumulated upward adjustments		Impairments and downward adjustments			Upward adjustments
Equity securities measured using the measurement alternative	¥	47,460	¥	(13,474	)	¥	350	¥	(1,479	)	¥	232


	Millions of yen
	March 31, 2022							Fiscal Year ended March 31, 2022
	Carrying value		Accumulated impairments and downward adjustments			Accumulated upward adjustments		Impairments and downward adjustments			Upward adjustments
Equity securities measured using the measurement alternative	¥	58,723	¥	(13,880	)	¥	401	¥	(208	)	¥	163

Amortized Cost Basis Amounts, Gross Unrealized Holding Gains, Gross Unrealized Holding Losses and Fair Values of Available-for-Sale Securities and Held-to-Maturity Securities in Each Major Security Type

The amortized cost basis amounts, gross unrealized holding gains, gross unrealized holding losses and fair values of

available-for-sale

debt securities and

held-to-maturity

debt securities in each major security type as of March 31, 2021 and 2022 are as follows:

March 31, 2021


	Millions of yen
	Amortized cost		Allowance for credit losses			Gross unrealized gains		Gross unrealized losses			Fair value
Available-for-sale debt securities:
Japanese and foreign government bond securities	¥	846,736	¥	0		¥	6,071	¥	(31,649	)	¥	821,158
Japanese prefectural and foreign municipal bond securities		274,770		(120	)		4,238		(2,612	)		276,276
Corporate debt securities		742,862		0			10,125		(10,736	)		742,251
CMBS and RMBS in the Americas		35,668		0			549		(1,760	)		34,457
Other asset-backed securities and debt securities		126,731		0			4,308		(1,264	)		129,775

		2,026,767		(120	)		25,291		(48,021	)		2,003,917

Held-to-maturity debt securities:
Japanese government bond securities and other		113,790		0			25,342		0			139,132

	¥	2,140,557	¥	(120	)	¥	50,633	¥	(48,021	)	¥	2,143,049

March 31, 2022


	Millions of yen
	Amortized cost		Allowance for credit losses			Gross unrealized gains		Gross unrealized losses			Fair value
Available-for-sale debt securities:
Japanese and foreign government bond securities	¥	905,004	¥	0		¥	5,178	¥	(77,569	)	¥	832,613
Japanese prefectural and foreign municipal bond securities		333,449		(132	)		2,482		(10,195	)		325,604
Corporate debt securities		873,178		0			10,014		(33,632	)		849,560
CMBS and RMBS in the Americas		29,349		0			112		(729	)		28,732
Other asset-backed securities and debt securities		135,445		(21	)		5,456		(2,498	)		138,382

		2,276,425		(153	)		23,242		(124,623	)		2,174,891

Held-to-maturity debt securities:
Japanese government bond securities and other		114,312		0			21,129		0			135,441

	¥	2,390,737	¥	(153	)	¥	44,371	¥	(124,623	)	¥	2,310,332

Information about Available-for-Sale Securities with Gross Unrealized Losses and Length of Time Individual Securities Have Been in Continuous Unrealized Loss Position

The following tables provide information about

available-for-sale

debt securities with gross unrealized losses (including allowance for credit losses) and the length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2021 and 2022, respectively:

March 31, 2021


	Millions of yen
	Less than 12 months					12 months or more					Total
	Fair value		Gross unrealized losses			Fair value		Gross unrealized losses			Fair value		Gross unrealized losses
Available-for-sale debt securities:
Japanese and foreign government bond securities	¥	475,023	¥	(21,472	)	¥	264,105	¥	(10,177	)	¥	739,128	¥	(31,649	)
Japanese prefectural and foreign municipal bond securities		48,367		(519	)		63,316		(2,213	)		111,683		(2,732	)
Corporate debt securities		231,552		(5,798	)		141,559		(4,938	)		373,111		(10,736	)
CMBS and RMBS in the Americas		345		(6	)		24,782		(1,754	)		25,127		(1,760	)
Other asset-backed securities and debt securities		4,296		(112	)		29,750		(1,152	)		34,046		(1,264	)

	¥	759,583	¥	(27,907	)	¥	523,512	¥	(20,234	)	¥	1,283,095	¥	(48,141	)

March 31, 2022


	Millions of yen
	Less than 12 months					12 months or more					Total
	Fair value		Gross unrealized losses			Fair value		Gross unrealized losses			Fair value		Gross unrealized losses
Available-for-sale debt securities:

Japanese and foreign government bond securities	¥	217,457	¥	(16,117	)	¥	521,633	¥	(61,452	)	¥	739,090	¥	(77,569	)
Japanese prefectural and foreign municipal bond securities		190,081		(6,509	)		46,391		(3,818	)		236,472		(10,327	)
Corporate debt securities		373,506		(19,340	)		156,687		(14,292	)		530,193		(33,632	)
CMBS and RMBS in the Americas		6,458		(98	)		17,542		(631	)		24,000		(729	)
Other asset-backed securities and debt securities		66,543		(995	)		37,432		(1,524	)		103,975		(2,519	)

	¥	854,045	¥	(43,059	)	¥	779,685	¥	(81,717	)	¥	1,633,730	¥	(124,776	)

The following table provides information about

available-for-sale

debt securities with gross unrealized losses for which allowance for credit losses were not recorded and the length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2021 and 2022, respectively:

March 31, 2021


	Millions of yen
	Less than 12 months					12 months or more					Total
	Fair value		Gross unrealized losses			Fair value		Gross unrealized losses			Fair value		Gross unrealized losses
Available-for-sale debt securities:
Japanese and foreign government bond securities	¥	475,023	¥	(21,472	)	¥	264,105	¥	(10,177	)	¥	739,128	¥	(31,649	)
Japanese prefectural and foreign municipal bond securities		45,486		(399	)		63,316		(2,213	)		108,802		(2,612	)
Corporate debt securities		231,552		(5,798	)		141,559		(4,938	)		373,111		(10,736	)
CMBS and RMBS in the Americas		345		(6	)		24,782		(1,754	)		25,127		(1,760	)
Other asset-backed securities and debt securities		4,296		(112	)		29,750		(1,152	)		34,046		(1,264	)

	¥	756,702	¥	(27,787	)	¥	523,512	¥	(20,234	)	¥	1,280,214	¥	(48,021	)

March 31, 2022


	Millions of yen
	Less than 12 months					12 months or more					Total
	Fair value		Gross unrealized losses			Fair value		Gross unrealized losses			Fair value		Gross unrealized losses
Available-for-sale debt securities:
Japanese and foreign government bond securities	¥	217,457	¥	(16,117	)	¥	521,633	¥	(61,452	)	¥	739,090	¥	(77,569	)
Japanese prefectural and foreign municipal bond securities		190,081		(6,509	)		43,338		(3,686	)		233,419		(10,195	)
Corporate debt securities		373,506		(19,340	)		156,687		(14,292	)		530,193		(33,632	)
CMBS and RMBS in the Americas		6,458		(98	)		17,542		(631	)		24,000		(729	)
Other asset-backed securities and debt securities		66,489		(974	)		37,432		(1,524	)		103,921		(2,498	)

	¥	853,991	¥	(43,038	)	¥	776,632	¥	(81,585	)	¥	1,630,623	¥	(124,623	)

The number of investment securities that were in an unrealized loss position as of March 31, 2021 and 2022 were 638 and 963, respectively. The gross unrealized losses on these debt securities are attributable to a number of factors including changes in interest rates, credit spreads and market

trends.

Roll-Forwards of Amount of Accumulated Other-Than-Temporary Impairments Related to Credit Losses

For

available-for-sale

debt securities held as of March 31, 2020, roll-forwards of the amount of accumulated other-than-temporary impairments related to credit losses for fiscal 2020 are as follows:


	Millions of yen
	2020
Beginning	¥	2,102
Addition (Reduction) during the period		0

Ending	¥	2,102

Summary of Contractual Maturities of Available-for-Sale Debt Securities and Held-to-Maturity Debt Securities

The following is a summary of the contractual maturities of

available-for-sale

debt securities and

held-to-maturity

debt securities held as of March 31, 2022:

Available-for-sale

debt securities held as of March 31, 2022


	Millions of yen
	Amortized cost		Fair value
Due within one year	¥	40,955	¥	41,178
Due after one to five years		356,995		361,532
Due after five to ten years		477,735		472,733
Due after ten years		1,400,740		1,299,448

	¥	2,276,425	¥	2,174,891

Held-to-maturity

debt securities held as of March 31, 2022


	Millions of yen
	Amortized cost		Fair value
Due after five to ten years	¥	17,281	¥	19,775
Due after ten years		97,031		115,666

	¥	114,312	¥	135,441

Summary of rollforward of allowance for credit losses

The following table presents rollforwards of the allowance for credit losses for fiscal 2021 and 2022, respectively.


	Millions of yen
	Fiscal Year ended March 31, 2021
	Foreign municipal bond securities		Total
Beginning	¥	0	¥	0
Additions to the allowance for credit losses on available-for-sale debt securities for which credit losses were not previously recorded*		120		120

Ending	¥	120	¥	120

*	An increase from the effects of changes in foreign exchange rates of ¥3 million was included in additions to the allowance for credit losses on available-for-sale debt securities for fiscal 2021.


	Millions of yen
	Fiscal Year ended March 31, 2022
	Foreign municipal bond securities		Japanese other asset- backed securities and debt securities		Total
Beginning	¥	120	¥	0	¥	120
Additions to the allowance for credit losses on available-for-sale debt securities for which credit losses were not previously recorded		0		21		21
Increase (Decrease) from the effects of changes in foreign exchange rates		12		0		12

Ending	¥	132	¥	21	¥	153