Group EV as of March 31, 2026

May 15, 2026

T&D Holdings, Inc.

(Security Code: 8795, TSE Prime Market) Taiyo Life Insurance Company

Daido Life Insurance Company

T&D Financial Life Insurance Company

T&D Holdings, Inc. (President: Masahiko Moriyama, "TDH"), Taiyo Life Insurance Company (President: Yasuro Tamura, "Taiyo"), Daido Life Insurance Company (President: Hiroyuki Fujita, "Daido") and T&D Financial Life Insurance Company (President: Morinaka Kanaya, "TDF") (collectively, the "Group") have disclosed market consistent embedded value ("MCEV") in compliance with the European Insurance CFO Forum Market Consistent Embedded Value Principles© (the "MCEV Principles").

In light of the introduction of a new economic value-based solvency regulation (the "New Regulation") at the end of fiscal year 2025, the Group will, starting with its results for the fiscal year ended March 31, 2026, disclose "Group EV" as an indicator representing the Group's enterprise value. This measure will be calculated using a methodology consistent with the New Regulation.

(Note) The figures as of March 31, 2025 for the Group and its three life insurance companies have not been retrospectively adjusted, and the Group MCEV and each company's MCEV are presented as disclosed.

Summary

The Group EV as of March 31, 2026 is as shown in the table below:

(Billions of yen)

1. EV results of T&D Insurance Group
2. Movement Analysis
3. EV by Company
4. Sensitivities
5. EV Methodology
6. Main EV Assumptions
7. Notes on the Use of the Information

1. EV results of T&D Insurance Group
   1. Group EV

      Group EV increased by ¥292.9 billion from the previous fiscal year-end to ¥4,238.6 billion as of March 31, 2026, mainly driven by the contribution of new business and the rise in domestic and foreign stock prices.

      Adjusted net worth decreased despite positive contributions from the rise in domestic and foreign stock prices, as the impact of higher domestic interest rates more than offset these gains. Life insurance in-force value increased, mainly driven by the contribution of new business and higher domestic interest rates.

      (Billions of yen)

      		March 31, 2025	March 31, 2026	Increase (Decrease)
      Group EV		3,945.7	4,238.6	292.9
      	Adjusted net worth	988.8	777.7	(211.0)
      	Value of in-force business	2,956.9	3,460.8	503.9

   2. Value of new business

   Value of new business represents the value as of March 31, 2026 of new business written during fiscal year 2025, calculated using the same assumptions as those applied to the Group EV as of March 31, 2026, and does not include the value of future new business to be written.

   The new business margin is the ratio of the Value of new business to the present value of premiums. Value of new business is ¥169.0 billion, an increase of ¥2.9 billion from the value for the prior fiscal year.

   (Billions of yen)

   	March 31, 2025	March 31, 2026	Increase (Decrease)
   Value of new business	166.1	169.0	2.9
   Present value of new business premiums	2,121.6	1,936.3	(185.3)
   New business margin	7.8%	8.7%	0.9points

2. Movement Analysis

The table below shows an analysis of the increase (decrease) in the embedded value during the 12 month period ended March 31, 2026. All components are shown on a post-tax basis.

(Billions of yen)

1. Opening adjustments

   This amount consists of the shareholders dividend paid to its shareholders, the treasury stock purchased from the market by T&D Holdings during fiscal year 2025, and the impact of internal model changes, and the impact of the adoption of changes in U.S. GAAP (LDTI).

2. New business value

   This is the value of new business issued during fiscal year 2025, including converted policies.

3. Expected existing business contribution (reference rate)

   This represents the aggregate of the expected investment income after tax that would be earned by investing assets equivalent to the adjusted net assets at the reference interest rate for a one-year period; the interest equivalent for one year calculated by discounting the future value arising from in-force business as of March 31, 2025 at the reference interest rate; and the costs for fiscal year 2025 relating to the time value of options and guarantees and non-hedgeable risks.

4. Expected existing business contribution (in excess of reference rate)

   Expected after-tax investment earnings on assets during fiscal year 2025 earned in excess of the reference rates.

5. Experience variances

   This is the impact on the embedded value of differences between the actual experience and the operating assumptions during the period.

6. Assumption changes

   This is the impact of changes in the operating assumptions which has been calculated as of the beginning of the period.

7. Economic variances

   This represents the impact of differences between expected and actual investment returns during the period, as well as the impact on the value of future profits arising from changes in economic assumptions at the end of the period, including changes in inflation rates.

8. Changes in net assets of non-covered business

   This is the aggregate impact of profits from the Group's non-covered business and changes in unrealized gains and losses on assets and liabilities.

   The covered businesses include life insurance subsidiaries 100% owned by T&D Holdings (Taiyo Life, Daido Life, T&D Financial Life, and their subsidiaries and affiliates).

9. Changes due to other factors

This represents changes attributable to factors not included in items (1) through (8) above.

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