Insurance-related accounts (Tables)

12 Months Ended

Mar. 31, 2022

Disclosure of types of insurance contracts [abstract]

Summary of Policyholder's account in the life insurance business

Policyholders’ account in the life insurance business is comprised of the following:


	Yen in millions
	April 1		March 31
	2020		2021		2022
Universal life insurance		2,611,577		3,067,791		3,278,148
Investment contracts		883,429		1,101,614		1,393,257
Other		145,004		159,489		119,890

Total		3,640,010		4,328,894		4,791,295

Summary of liability for the minimum guarantee benefit

The policyholders’ account value, net amount at risk, liability for the minimum guarantee benefit, and average attained age as of April 1, 2020, March 31, 2021 and 2022 are as follows:


	Yen in millions
	April 1, 2020
	Variable annuities		Variable life insurance contracts		Total
Policyholders’ account value		464,093		1,096,935		1,561,028
Net amount at risk		71,685		4,564,214		4,635,899
Liability for minimum guarantee benefit		64,045		79,860		143,905


	Age
	April 1, 2020
	Variable annuities		Variable life insurance contracts
Average attained age		60		45


	Yen in millions
	March 31, 2021
	Variable annuities		Variable life insurance contracts		Total
Policyholders’ account value		490,152		1,486,001		1,976,153
Net amount at risk		50,861		5,074,637		5,125,498
Liability for minimum guarantee benefit		42,309		58,246		100,555


	Age
	March 31, 2021
	Variable annuities		Variable life insurance contracts
Average attained age		61		45


	Yen in millions
	March 31, 2022
	Variable annuities		Variable life insurance contracts		Total
Policyholders’ account value		467,924		1,686,488		2,154,412
Net amount at risk		58,961		6,361,770		6,420,731
Liability for minimum guarantee benefit		37,382		63,392		100,774


	Age
	March 31, 2022
	Variable annuities		Variable life insurance contracts
Average attained age		63		45

Summary of changes in insurance contract liabilities

The changes in insurance contract liabilities are as follows:


	Yen in millions
	Future insurance policy benefits and other			Policyholders’ account in the life insurance business			Total
Balance as of April 1, 2020		6,646,656			3,640,010			10,286,666

Current portion *1		127,079			—			127,079
Non-current portion		6,519,577			3,640,010			10,159,587

Net premiums		786,916			319,240			1,106,156
Insurance liabilities released		(465,997	)		(195,202	)		(661,199	)
Unwind of discount and actuarial items *2		157,379			465,769			623,148
Changes in valuation of expected future benefits		(69,332	)		(6,401	)		(75,733	)
Shadow accounting adjustments		(258,953	)		(3,954	)		(262,907	)
Other		(68,340	)		90,575			22,235
Currency exchange rate fluctuations		21,121			18,857			39,978

Balance as of March 31, 2021		6,749,450			4,328,894			11,078,344

Current portion *1		134,865			—			134,865
Non-current portion		6,614,585			4,328,894			10,943,479

Net premiums		813,856			468,299			1,282,155
Insurance liabilities released		(539,586	)		(251,169	)		(790,755	)
Unwind of discount and actuarial items *2		149,869			201,797			351,666
Changes in valuation of expected future benefits		(11,144	)		946			(10,198	)
Shadow accounting adjustments		(15,692	)		(3,169	)		(18,861	)
Other		(65,198	)		29,328			(35,870	)
Currency exchange rate fluctuations		110,485			16,369			126,854

Balance as of March 31, 2022		7,192,040			4,791,295			11,983,335

Current portion *1		153,006			—			153,006
Non-current portion		7,039,034			4,791,295			11,830,329

The current portion of future insurance policy benefits and other is included in other current liabilities in the consolidated statements of financial position.

Mainly includes interests credited to reserves, expenses and mortality charges.

Summary of changes in deferred insurance acquisition costs

The changes in deferred insurance acquisition costs are as follows:


	Yen in millions
	Fiscal year ended March 31
	2021			2022
Balance at beginning of the fiscal year		194,116			631,231

Current portion*		6,212			7,245
Non-current portion		187,904			623,986

New deferred insurance acquisition costs		96,638			109,320
Amortization amount for current period		(44,738	)		(69,237	)
Shadow accounting adjustments		383,731			4,505
Currency exchange rate fluctuations		1,484			8,017

Balance at end of the fiscal year		631,231			683,836

Current portion*		7,245			7,310
Non-current portion		623,986			676,526

The current portion of deferred insurance acquisition costs is included in other current assets in the consolidated statements of financial position.

Summary of significant assumption

The significant assumptions and the ranges used to measure the insurance contract liabilities as of April 1, 2020, March 31, 2021 and 2022 are as follows:


	April 1		Fiscal year ended March 31
	2020		2021		2022

Discount rate		(0.061% ) - 6.25%		(0.046% ) - 6.25%		(0.075% ) - 6.25 %

Summary of impact of assumption change


	Yen in millions
	April 1			Fiscal year ended March 31
	2020			2021		2022
Impact on gains (losses)		(11,064	)		31,076		6,643
Changes in economic assumptions		(14,048	)		25,704		7,091
Changes in non-economic assumptions		2,984			5,372		(448	)
Impact on capital		(465,869	)		477,642		18,087
Changes in economic assumptions		(472,171	)		467,478		16,874
Changes in non-economic assumptions		6,302			10,164		1,213

Summary of insurance related accounts measured at fair value

The fair value of future insurance policy benefits and policyholders’ account in the life insurance business as of April 1, 2020, March 31, 2021 and 2022 is as follows:


	Yen in millions
	Fair value		Presentation in the consolidated statements of financial position
	Fair value		Future insurance policy benefits and other		Policyholders’ account in the life insurance business
April 1, 2020		532,191		64,045		468,146
March 31, 2021		536,189		42,309		493,880
March 31, 2022		507,699		37,382		470,317

Summary of significant unobservable inputs

The valuation techniques, significant unobservable inputs, and the ranges used to measure the fair value of the future insurance policy benefits and policyholders’ account in the life insurance business as of April 1, 2020, March 31, 2021 and 2022 are as follows:


Valuation techniques	Significant unobservable inputs	Range
Valuation techniques	Significant unobservable inputs	April 1, 2020	March 31, 2021	March 31, 2022
Present value of future expected cash flows	Credit spread*	64.4bp	37.9bp	47.5bp
	Mortality rates	0.004%-44.865%	0.004%-44.865%	0.003% - 35.693%
	Lapse rates	1.000%-7.500%	1.000%-7.500%	0% - 7.500%

* bp = basis point

Summary of changes in fair value of future insurance policy

The changes in fair value of future insurance policy benefits and policyholders’ account in the life insurance business measured at fair value for the fiscal years ended March 31, 2021 and 2022 are as follows:


	Yen in millions
	Fiscal year ended March 31
	2021			2022
Balance at beginning of the fiscal year		532,191			536,189

Total (gains) losses *1 :
Included in net income *2		16,475			830
Included in other comprehensive income *3		3,120			(797	)
Issuances		1,996			—
Settlements		(17,593	)		(28,523	)

Balance at end of the fiscal year		536,189			507,699

Changes in unrealized gains (losses) relating to future insurance policy benefits and policyholders’ account in the life insurance business still held as of reporting date included in net income *2		(29,205	)		(13,638	)

Gains presented as negative and losses presented as positive.

Included in financial services revenue and financial services expense in the consolidated statements of income.

Included in insurance contract valuation adjustments in the consolidated statements of comprehensive income.

Summary of changing the underlying assumptions of MCEV

The tables below show the sensitivities of changing the underlying assumptions of MCEV as of April 1, 2020, March 31, 2021 and 2022.


		April 1, 2020
Assumption	Changes in assumptions, etc.	Yen in millions					Rate of change
Assumption	Changes in assumptions, etc.	MCEV		Change in amount			Rate of change
Base	No change		1,713,544		—			—
Interest rates*	50bp decrease		1,675,351		(38,193	)		(2.23%	)
	50bp increase		1,723,260		9,716			0.57%
Stock/Real estate market value	10% decrease		1,687,104		(26,439	)		(1.54%	)
Maintenance expenses	10% decrease		1,742,146		28,603			1.67%
Lapse and surrender rate	10% decrease		1,661,415		(52,128	)		(3.04%	)
Mortality rates (death protection)	5% decrease		1,781,851		68,308			3.99%
Mortality rates (third sector /annuity products)	5% decrease		1,697,478		(16,066	)		(0.94%	)
Morbidity rates	5% decrease		1,786,439		72,895			4.25%
Foreign exchange rates	10% appreciation of the Yen		1,684,219		(29,324	)		(1.71%	)

* bp = basis point


		March 31, 2021
Assumption	Changes in assumptions, etc.	Yen in millions					Rate of change
Assumption	Changes in assumptions, etc.	MCEV		Change in amount			Rate of change
Base	No change		1,966,570		—			—
Interest rates*	50bp decrease		1,972,839		6,269			0.32%
	50bp increase		1,936,227		(30,343	)		(1.54%	)
Stock/Real estate market value	10% decrease		1,942,875		(23,695	)		(1.20%	)
Maintenance expenses	10% decrease		1,994,729		28,158			1.43%
Lapse and surrender rate	10% decrease		1,965,268		(1,302	)		(0.07%	)
Mortality rates (death protection)	5% decrease		2,032,004		65,434			3.33%
Mortality rates (third sector /annuity products)	5% decrease		1,952,436		(14,134	)		(0.72%	)
Morbidity rates	5% decrease		2,038,626		72,055			3.66%
Foreign exchange rates	10% appreciation of the Yen		1,941,841		(24,729	)		(1.26%	)

* bp = basis point


		March 31, 2022
Assumption	Changes in assumptions, etc.	Yen in millions					Rate of change
Assumption	Changes in assumptions, etc.	MCEV		Change in amount			Rate of change
Base	No change		2,066,357		—			—
Interest rates*	50bp decrease		2,107,521		41,164			1.99%
	50bp increase		2,004,841		(61,516	)		(2.98%	)
Stock/Real estate market value	10% decrease		2,049,089		(17,268	)		(0.84%	)
Maintenance expenses	10% decrease		2,097,153		30,796			1.49%
Lapse and surrender rate	10% decrease		2,083,260		16,903			0.82%
Mortality rates (death protection)	5% decrease		2,136,304		69,948			3.39%
Mortality rates (third sector /annuity products)	5% decrease		2,052,870		(13,487	)		(0.65%	)
Morbidity rates	5% decrease		2,136,413		70,057			3.39%
Foreign exchange rates	10% appreciation of the Yen		2,051,249		(15,108	)		(0.73%	)

* bp = basis point

Summary of the remaining undiscounted net cash flows

The following table summarizes the estimated timing of the remaining undiscounted net cash flows from insurance contract liabilities and the contractual timing of the remaining undiscounted cash flows arising from securities held by the insurance subsidiaries as of April 1, 2020, March 31, 2021 and 2022. The cash flows of insurance liabilities are based on assumptions regarding morbidity rates, mortality rates, and lapse rates, which are consistent with the estimates used for the carrying amounts.


	Yen in millions
	April 1, 2020
	Total		Indefinite Terms		Within 1 year		1 to 2 years		2 to 3 years		3 to 4 years		4 to 5 years		More than 5 years
Insurance contract liabilities		17,292,920		—		58,958		79,164		136,924		178,881		223,072		16,615,921
Securities held by insurance subsidiaries		15,459,087		1,005,229		645,257		188,889		187,273		238,590		352,546		12,841,303


	Yen in millions
	March 31, 2021
	Total		Indefinite Terms		Within 1 year		1 to 2 years		2 to 3 years		3 to 4 years		4 to 5 years		More than 5 years
Insurance contract liabilities		22,097,488		—		127,728		148,972		189,784		224,574		262,433		21,143,997
Securities held by insurance subsidiaries		17,014,630		1,584,670		670,402		198,858		245,184		342,846		328,947		13,643,723


	Yen in millions
	March 31, 2022
	Total		Indefinite Terms		Within 1 year		1 to 2 years		2 to 3 years		3 to 4 years		4 to 5 years		More than 5 years
Insurance contract liabilities		25,561,549		—		165,028		155,586		198,370		234,987		263,679		24,543,899
Securities held by insurance subsidiaries		18,536,483		2,008,071		656,948		223,111		348,527		335,791		311,466		14,652,569