1H FY2021 Business Results

1H FY2021 Business Results

Sumitomo Life at a Glance

 Company Overview Group Overview 6
◼ Established: May 1907 Life Insurance Insurance Outlets

 Key Figures1 – 1H FY2021 (as of Sep. 2021) Medicare Life

 Domestic
 Insurance
◼ Premium income: JPY 1.17tn (USD 10.5bn) ◼ Sells simple and affordable
 (JPY 2.41tn in FY2020) products through banks and
 outlets Izumi Life Designers /
◼ Core business profit2: JPY 184.0bn (USD 1.6bn) ◼ 100% subsidiary INSURANCE DESIGN /
 Agent Insurance Group /
 (JPY 357.0bn in FY2020) Small-amount and Mycommunication
 Short-term Insurance
◼ Total assets: JPY 42.004tn (USD 375.3bn) AIARU Small Amount ◼ Also sell other insurers’
 products
 & Short Term Insurance
 ◼ Ownership: 100% / 95% /
◼ Annualized premiums from JPY 2.84tn (USD 25.4bn) ◼ Owns 99.84% of the shares 44.83% / 43%
 policies in force3:
◼ Solvency margin ratio: 919.6% U.S. China

◼ Embedded value4 (EEV) : JPY 4.79tn (USD 42.8bn)
 Symetra Financial Corp PICC Life
 ◼ Life insurance group ◼ Life insurance JV with
◼ Number of sales 35,314 operating businesses PICC

 Overseas
 representatives: across the U.S. ◼ Owns 10% of the
 ◼ 100% subsidiary since shares
◼ Insurer financial strength A+ [S&P], A1 [Moody’s], February 2016
 rating5: AA- [R&I], AA- [JCR], A+ [Fitch] Vietnam Indonesia Singapore
 Aviva Singlife Holdings
 ◼ Holding company with Aviva
Source: Company disclosure Baoviet Holdings PT BNI Life
 Singapore, one of the largest
1. Consolidated figures. USD amounts in parentheses in this presentation (except as otherwise stated) are
 ◼ The largest financial / ◼ JV with BNI, a domestic insurance companies,
 translated from JPY using USD1 = JPY111.92, as of September 30, 2021. national bank
 insurance group in and Singlife, an emerging
2. Core business profit of the group (see page 7 for details) ◼ Owns 39.99%
 Vietnam insurance company that aims to
3. Figures for individual life and individual annuity for domestic business (see page 6 for details) ◼ Owns 22.08% of the of the shares harness cutting-edge technology
4. Combined figures of Sumitomo Life’s EEV, Medicare Life’s EEV and Symetra’s EEV (see page 8 for details) shares ◼ Owns 20.74% of the shares
5. As of October 31, 2021. The rating from Fitch is unsolicited
6. As of September 30, 2021 on ownership
 2

Key Highlights

◇ 1H FY2021 Results

✓ Group Annualized premiums (AP) from policies in force have shown ・・・ P.6
 stable growth. AP from new policies increased from 1H FY2020 due
 mainly to the growing sales of protection products.

✓ Group core business profit decreased from 1H FY2020 due to ・・・ P.7
 investment for long-term growth, payments related to COVID-19,
 and higher initial policy costs associated with the growth in new
 policies of Medicare Life.

✓ EEV increased from the end of the previous fiscal year due to positive ・・・ P.8
 results of the insurance business such as acquiring new policies and
 securing earnings from policies in force, as well as an increases in stock
 prices, etc.
 ・・・ P.9
✓ Established a strong capital base consisting mainly of contingency
 reserves.
 3

Ⅰ. FY2021 Business Results

 4

Impact of the Pandemic

 Payments of claims and benefits related to COVID-19 totaled approximately ¥11.2 billion, of
which, approximately ¥7.1 billion was paid in 1H FY2021. Annualized premiums (AP) from new
 policies recovered to the level before the spread of COVID-19.

 Situation in Japan (Sumitomo Life (non-consolidated))
 < COVID-19-related Payments >

 Death benefits Hospitalization benefits Extension of grace
 period of premium
 Number Amount Number Amount payment
 Total since the spread of COVID-19 1,109 JPY 7.3bn 30,413 JPY 3.8bn 12,350
 Of which, in 1H FY2021 664 JPY 4.3bn 21,381 JPY 2.7bn 863

 < Claims Paid and Benefit Payments > < Annualized Premiums from New Policies >
 JPY bn
 JPY bn
 59.4
 60.0
 500 54.9
 50.3 49.4
 50.0
 400 153.0
 153.9 142.7 40.0
 153.8 40.0
 148.9
 300
 30.0
 200
 20.0
 300.5 307.6 287.2 270.9 257.7
 100 10.0

 0 0.0
 FY19 FY19 FY20 FY20 FY21 FY19 FY19 FY20 FY20 FY21
 1H 2H 1H 2H 1H 1H 2H 1H 2H 1H
 Claims Paid Benefit Payments
 5

Operating Performance
 Annualized premiums (AP) from policies in force have shown stable growth.
 AP from new policies increased from 1H FY2020 due mainly to the growing sales of protection products.

 Annualized Premiums from Policies in Force1 Annualized Premiums from New Policies1
 (Group) (Group)

 JPY bn JPY bn
3,000 2,845.4 150
 2,783.2 2,782.4 2,806.5 2,804.4 (USD 25.4bn) 123.4
 113.1
 109.8 113.6
 419.7.0 419.4 462.4 462.5 505.9 (USD 1.0bn)
2,500 (USD 4.5bn) 100 97.4
 51.6
 43.9 51.1 53.4
 50.6 (USD 0.4bn)
2,000
 50 45.6 39.7 39.8 31.5
 29.8 (USD 0.2bn)

 26.1 26.1 28.0
1,500 1,790.4 1,779.1 1,753.9 1,740.0 1,727.5 22.6 16.9 (USD 0.2bn)
 (USD 15.4bn)
 0
 FY17 FY18 FY19 FY20 FY21
 1H 1H 1H 1H 1H
1,000 Third sector Excl. third sector Overseas (Symetra)

 Persistency Rate2 (Non-consolidated)
 500 601.8 611.9 %
 573.0 583.8 590.0 100
 (USD 5.4bn) 13th month
 96.6 96.8 96.5
 96.1
 95 93.3 91.9
 0
 Mar 18 Mar 19 Mar 20 Mar 21 Sep 21 92.9
 90 92.4 92.2
 Third sector Excl. third sector Overseas (Symetra) 25th month
 85 87.3
1. Figures for domestic business (Third sector + Excl. third sector) are individual life insurance and
 individual annuities
 Timing Sep 17 Sep 18 Sep 19 Sep 20 Sep 21
2. Figures are based on annualized premiums for products sold by sales representatives
 6

Profit Trend
Group core business profit decreased from 1H FY2020 due to investment for long-term growth, payments related to
 COVID-19, and higher initial policy costs associated with the growth in new policies of Medicare Life.
 Gain from Insurance Activities
 Core Business Profit1 (Group)
 and Interest Gain (Non-consolidated)
 JPY bn JPY bn
 200

 200 150
 Gain from
 insurance
 153.1 142.5 132.7 112.4 activities
 100 137.5
 (USD 1.0bn)
 203.3
 168.3. 184.0
 100 202.6 196.5 (USD 1.6bn) 50
 65.3
 46.9 55.3
 36.7
 Of which, overseas operations 22.6 (USD 0.5bn)
 Interest
 0 gain
 FY17 FY18 FY19 FY20 FY21
 1H 1H 1H 1H 1H
 14.5 20.1 17.6 18.2 26.3
 (USD 0.2bn)
 0 
 FY17 FY18 FY19 FY20 FY21 %
 (Non-consolidated)
 1H 1H 1H 1H 1H 2.90
 Investment yield2
 2.70 2.55
 2.44 2.41 2.42
 2.50 2.34
 1. Group core business profit is calculated by combining core business profit of Sumitomo Life and 2.30
 Medicare Life, and profit before tax of Symetra, Baoviet Holdings, BNI Life, Aviva Singlife Holdings 2.10 2.03 Average
 and PICC Life attributable to Sumitomo Life’s equity stake in each company, with adjustments 2.10 2.30 2.17 1.94 assumed yield
 made to some internal transactions
 1.90
 2. Related to core business profit FY17 FY18 FY19 FY20 FY21

 7

EEV Trend
EEV increased from the end of the previous fiscal year due to positive results of the insurance business such as
 acquiring new policies and securing earnings from policies in force, as well as an increase in stock prices, etc.

 EEV (Group) EEV Growth Factors

 JPY bn
 4,799.2 JPY bn
 5,000 (USD 42.8bn) Economic
 4,489.2
 Income from variances
 new business
 4,000 3,778.9 3,699.0 +57.6
 3,584.1 and existing
 business etc.

 3,000

 +252.4
 2,000

 4,799.2
 1,000 4,500
 [+310.0]
 ＜Reference＞
 Mar 21 Sep 21
 0
 Mar 18 Mar 19 Mar 20 Mar 21 Sep 21 30yr JGB 0.665% 0.670%

 20yr JGB 0.475% 0.445%
 
 % 50bp downward parallel shift in 10yr JGB 0.090% 0.065%
 JPY risk-free yield curve
 20.0 4,489.2 TOPIX 1954.00 2030.16
 10.4 10.7 11.0 10% decline
 10.0 6.4 in equity and
 real estate
 5.2 4.9 5.3 5.4 values 4,000
 0.0
 Mar 18 Mar 19 Mar 20 Mar 21

 1. Sensitivity for each item. Other conditions are assumed to be the same
 Mar 21 Sep 21
 8

Capital Base

 Established a strong capital base consisting mainly of Internal reserves and surplus.
 Solvency margin ratio remains at a stable level.

 Trend of Capital (Non-consolidated) Solvency Margin Ratio (Consolidated)

JPY bn %
 2,914.1 1,000
3,000
 2,765.7
 (USD 26.0bn) 915.6 919.6
 JPY 100.5bn 881.7 870.0 862.5
 issuing of
 2,508.5 US$ Subordinated600.5 External
 ⑥
2,500 2,402.8 2,462.6 569.9 bond Capital
 800
 JPY 600.5bn
 JPY 70.0bn ⑤
 redemption of
 499.9 499.9 subordinated
 499.9 bond
2,000 610.4 ④
 50.0 508.2
 100.0 417.1 600
 364.3
 349.4
1,500

 899.2 ③
 Internal
 787.5 883.6 reserves and 400
 656.9 744.4 surplus
1,000 JPY 2,313.6bn

 165.0 165.0 165.0 165.0 165.0 ②
 200
 500 Regulatory minimum threshold of 200%
 631.6 639.0 639.0 639.0 639.0 ①

 0 0
 Mar 18 Mar 19 Mar 20 Mar 21 Sep 21 Mar 18 Mar 19 Mar 20 Mar 21 Sep 21
 ① Reserve for fund redemption + ② Fund for price ③ Reserve for price
 Reserve for redemption of fluctuation allowance fluctuation
 foundation funds1
 ④ Contingency reserve ⑤ Foundation funds ⑥ Subordinated
 loans / bonds
 1. Figures before March 2021 are after appropriation of surplus
 9

Progress of Medium-Term Business Plan (2020-2022)

 Targets for Results as of
 Items
 March 2023 September 2021
 Number of Customers (Policies in Force)1 14.00 million policies 14.19 million policies
 (Sumitomo Life + Medicare Life + Business Alliance Partners)

 Annualized Premiums from Policies in Force JPY 2,310.0bn JPY 2,339.4bn
 (Sumitomo Life + Medicare Life)

 Of which, Third Sector JPY 610.0bn JPY 611.9bn
 Domestic Business Core Business Profit 3-year total FY2020 – 1H FY2021 total
 (Sumitomo Life + Medicare Life) JPY 901.0bn JPY 490.8bn
 Overseas Operation Core Business Profit 3-year total FY2020 – 1H FY2021 total
 (Symetra, etc.) JPY 103.0bn JPY 58.5bn
1. Number of individual life insurance and individual annuities, including products provided by our business alliance partners (Mitsui Sumitomo Insurance, NN Life, Sony Life).
 10

Ⅱ. Sumitomo Life Group’s Initiatives

 11

① Multi-Channel and Multi-Product Strategy

② Asset Management

③ Sustainability

④ Overseas Business Development

⑤ Capital Policy

 12

Multi-Channel and Multi-Product Strategy
 We aim to expand the entire customer base of the Sumitomo Life group
 by providing products customized to the unique characteristics of each channel.

 Entities ✓ Arouse potential needs Channels
 ✓ Provide products and services based
 on consulting
 ✓ Provide new value of “Health
 Enhancement”
 【Policies in Force：13mm1 】 (for needs including medical, nursing
 Business Alliance care and work disability, health
 Sales Reps
 enhancement, asset building, etc.)

 ✓ Expand the efficient product lineup
 ✓ Contribute to expense savings
 (NN Life) revenue through sales commissions,
 and diversification of revenue Customers
 (for business coverage, business Bancassurance-
 succession, retirement planning, Banks, Financial
 Institutions &
 stable asset building, etc.)
 Subsidiary Japan Post Group,
 etc.
 ✓ Provide simple and affordable
 medical insurance Insurance Outlets
 (Medicare Life)
 2
 【Policies in Force：1mm 】
 ✓ Agile marketing, insurance coverage
 to the “niche areas”
 (AIARU Small Amount &
 Short Term Insurance)

 Expansion of the customer base of the Sumitomo Life group by
 leveraging the unique characteristics of each channel
1. As of September 30, 2021. Number of individual life insurance and individual annuities, including products provided by our business alliance partners (Mitsui Sumitomo Insurance, NN Life, Sony Life)
2. As of September 30, 2021
 13

Our Main Products
 We develop and provide products to match customer needs, utilizing subsidiaries and business alliances.

 Life Insurance P&C Insurance
Customer

 Individual Life In case of
 Needs

 Corporate
 a sudden
 Mortality
 Nursing Care / Medical Insurance
 Work Disability Insurance
 Savings accident

 Comprehensive Medical Single-Premium Insurance
 Protection Insurance Term Life Automobile
 Insurance [Yen] [Foreign Currency]
 Insurance
 (Whole Life) (Whole Life)

 Property Insurance
 Dementia Protection Cancer Protection
 Products

 Level-Premium Insurance
 Wellness program that could be attached [Yen] [Foreign Currency]
 to the above main products (Whole Life) (Whole Life) Casualty Insurance

 Medical Protection

 Income Assurance Medical Insurance (Endowment) Others
 Insurance （Simple and affordable）

 Work Disability
 がん保険 (Annuity) (Annuity) Protection

 14

SUMITOMO LIFE Vitality Sales
Sales of SUMITOMO LIFE Vitality were strong in 1H FY2021, with the number of policies sold increasing steadily.
 Started offering a trial version and a family plan to enable more customers to experience for themselves the
 attraction of the Vitality program.
 Overview of SUMITOMO LIFE Vitality Number of SUMITOMO LIFE Vitality policies sold
 ・Package product, which adds Vitality, a globally recognized ・Sales in 1H FY2021 were a record high on a semi-annual basis.
 health enhancement program with over 20 million members (thousand policies)
 across 30 countries and regions as of June 30, 2021, to a
 protection type product. 193
 ・Sumitomo Life is the exclusive partner insurer for the Japanese 200
 market for the distribution of Vitality. 127 139
 ・Cumulative 820,000 contracts as of September 30, 2021. 110 116
 100 68 67
 Protection Type Vitality Wellness Program
 Products
 ・Contribute to reduction of risks
 ・Prepare for nursing, associated with illness via 0
 medical and mortality mechanism that promotes FY18 FY18 FY19 FY19 FY20 FY20 FY21
 risks sustained health enhancement 1H 2H 1H 2H 1H 2H 1H

 Efforts to let more customers experience for themselves the attraction of the Vitality program
 ■ Provision of a Vitality trial version ■ Launch of a family plan
 ・Started offering a “trial version” that allows customers to experience ・ Launched a “Family Plan” targeting Vitality members’ families,
 part of the Vitality Wellness Program (e.g. Active Challenge) free of with the aim of encouraging members to participate in the
 charge for a limited time before signing life insurance policies. The Vitality Wellness Program as a family.
 aim is to enable customers to experience for themselves the
 attraction of Vitality. I became more conscious of “family
 The Active Challenge system health” since the COVID-19 outbreak1
 1. A weekly target 2. Points are gained 3. If the weekly target is
 is set automatically. through activities such as achieved, the user is I am working on health improvement
 walking, with the aim to guaranteed to receive together with families and friends2
 achieve the target tickets that can be 1.Results of questionnaire for Vitality members: Survey of 32,316 members living with other
 number of points. exchanged for various household members
 drinks. 2.Results of questionnaire for Vitality members: Survey of 12,732 members who have Vitality
 members in their households
 15

Contribution and Evolution of SUMITOMO LIFE Vitality
 SUMITOMO LIFE Vitality contributes to change in awareness, behavior, and health condition of policyholders
 Continuously work on the evolution of SUMITOMO LIFE Vitality in order to support policyholders to engage in
 health enhancing activities
 Contribution of SUMITOMO LIFE Vitality Evolution of SUMITOMO LIFE Vitality
[Vitality members]
Increase in or continuation of exercise opportunities ■Expansion of Bundled Target Products
Increase in exercise opportunities after enrollment : 1
 ８１ ％ 【As of Sep 30, 2021】
 +9 ％ increase in the average number of steps after
 enrollment and subsequent continuation of moderate exercise2
Improvements in the results of health checks3

 Blood pressure reduction of 10 mmHg or more: 44 ％
 Blood sugar reduction of 10 mg/dl or more: 31 ％
 LDL cholesterol reduction of 10 mg/dl or more: 39 ％

[Payments] ■ Expansion of reward partner companies
 4
Decrease in mortality and hospitalization rates (companies)
 【As of Sep 30, 2021】 17
 Mortality rate Down Down 20
 13
 about 40% about 85% 11
Vitality members have about 40%
lower mortality rate and about 10% 17 10

lower hospitalization rate. companies 0
 Mar 19 Mar 20 Mar 21
 Non-Vitality Vitality Blue Bronze Silver Gold
 Hospitalization rate Down Down
 about 10% about 40%
 ■Donation to the Japan Cancer Society using Active
By Vitality member status, both
 Challenge
mortality and hospitalization rates
 [Addition in June 2021] Made it possible to choose donation to the
are significantly lower for gold Japan Cancer Society instead of using coffee and drink tickets
members than blue members. Non-Vitality Vitality Blue Bronze Silver Gold obtained in Active Challenge (after achieving weekly exercise point
1.Questionnaire by Sumitomo Life. The number of responses: 41,666. Excluding Sumitomo Life employees. goals)
2.Analysis of the average number of steps taken by members enrolled between September 2018 and January 2019, by the end of January 2021.
3.Members who enrolled between September 2018 and January 2021, who, after enrolling, had submitted health-check results by March 2021, and who met all of the following conditions.
 ・Blood pressure: systolic blood pressure of 140 mmHg or more at the time of enrollment ・Blood sugar level: fasting blood sugar level of 126 mg/dl or more at the time of enrollment
 ・LDL cholesterol: LDL cholesterol of 140 mg/dl or more at the time of enrollment
4.Calculated based on payments made from April 2020 to March 2021 for policies issued before March 2020. The mortality rate excludes accidental deaths,
 and the hospitalization rate excludes accidental hospitalizations. Non-Vitality refers to policies that do not include the Vitality Wellness Program despite their eligibility.
 16

Medicare Life
 Sales of medical whole life insurance continued to be strong from last fiscal year,1,187
 1,200
 and the number of policies in force increased.
 1,025
 Medicare
 1,000 Life

 < Number of New Policies > < Number of Policies in Force >
 800 policies）
 （thousand
 778
（thousand policies） 715 1,187
 2H 1,200
 297 619
300 1H
 600 1,025
 1,000
 191
200 171 400
 800 778
 124 715
100 97 200 619
 600

 0 0
 Mar 18 Mar 19 Mar 20 Mar 21 Sep 21 400 Mar 18 Mar 19 Mar 20 Mar 21 Sep 21

 Insurance Outlets, etc. of Sumitomo Life Group
< Key Indicators (As of September 30, 2021) > 200
 Izumi Life Designers Co., INSURANCE DESIGN
 EEV JPY 226.1 bn Ltd. 0 Operates insurance outlets
 Operates Mar 18
 insurance Mar 19
 outlets calledMar
 Mar 20 “Hoken
 21 Design”
 Sep 21
 called “Hoken Hyakka”
 Solvency
 Margin Ratio 1,349.8%
 Mycommunication Co., Ltd. Agent Insurance Group, Inc.
 Credit Operates insurance outlets Mainly sells P&C insurance
 AA- (R&I) under the brand of “Hoken
 Rating Hotline”

 17

① Multi-Channel and Multi-Product Strategy

② Asset Management

③ Sustainability

④ Overseas Business Development

⑤ Capital Policy

 18

Medium-Term Asset Management Policy
 We plan to control the total risk amount by reducing domestic interest rate risk through investment in
 super long-term domestic bonds in anticipation of a prolonged low interest rate environment,
 and enhance profitability by further expanding investment in foreign credit assets and risk assets.

 Medium-Term Asset Management Policy
 Reduction of domestic interest Enhancement of profitability Promotion of responsible
 rate risk through risk-taking investment

 Super long-term domestic GHG net-zero
 Foreign credit assets
 bonds, etc.

 Consideration of new Responsible investment
 schemes Non-traditional investments1
 structure
 （comprehensive hedging
 by interest rate swaps）
 Foreign stocks All assets to be covered

 Unhedged foreign bonds Amount of thematic investment

 Risk Amount Risk Amount

 Improve profitability while controlling the total risk amount
1. Assets and investment methods other than those that are called traditional assets such as bonds and listed stocks (e.g. private equity, private debt)
 19

Initiatives in 1H FY2021
Managed general account with portfolios classified into two categories: ALM Investment and Balanced Investment.
 Aimed to increase our investment earnings in accordance with investment objectives and
 to strengthen our asset management platform in order to enhance medium to long-term investment profitability.
 Initiatives in 1H FY2021
 
 ALM Investment Portfolio Balanced Investment Portfolio
 ・Portfolio focused on yen-denominated assets (approx. JPY 26tn) ・Portfolio focused on highly liquid securities (approx. JPY 7tn)
 ・Objective is to contribute to sustainable growth of
 ・Objective is to contribute to secure payment of claims, etc.
 Embedded Value

 ・Promoted investment in foreign credit assets when
 ・invested in domestic, U.S., and Asian equities, paying
 corporate bond issuance increased, while strengthening
 Increased diversification of the portfolio, and selection. attention to stock price trends
 Investment ・Gradually increased investments in infrastructure equity Promoted ・Increased investment of unhedged foreign bonds
 Earnings funds and private equity funds. Considered and started Respon- (USD/Asian currencies) while taking the levels of
 investing in new non-traditional assets such as private sible interest rates and foreign exchange rates into
 debt. Invest- account
 ment
 ・Reduced domestic interest rate risk by investing in
 Strengthen super long-term bonds and implementing ・ Hedged risks in case of decline in stock market and
 -ed Risk comprehensive hedging of interest rate swaps, with the yen appreciation
 Control outlook of a prolonged low interest rate environment

 Initiatives to Strengthen Asset Management Platform
 Market Interest Rate and Our Investment Yield
 ・Started to formulate human capital strategy based on long-
 term asset strategy. 2.55% 2.34%
 3.0%
 ・Promoted cross-departmental BPR1, expand work from home 2.0%
 by introducing remote operation system 1.0% 0.06% 0.09%
 ・Entrusted assets such as bank loans and US private 0.0%
 corporate bonds, and decided to fully outsource overseas (1.0%)
 corporate bond management to Symetra Investment
 Mar 17 Mar 18 Mar 19 Mar 20 Mar 21
 Management.
 Investment yield (related to core business profit) JGB yield (10yrs)
 1. Business Process Reengineering: Fundamental review and redesign of work content and flow, etc.
 20

General Account Asset Portfolio

 Prudent investment policy, focusing mainly on yen-denominated interest-bearing assets
 Trend of General Account (GA) Assets Breakdown of GA Assets
 (Non-consolidated) (Non-consolidated)

Figures on B/S ＜As of September 2021＞
 JPY tn 34.5 34.8
 (USD 311.8bn)
 Others 4.2%
 32.2 1.7 1.4 6.2%1.6%
 31.9 0.5
 0.5 Real estate
 1.4%
 30.5 2.1 2.4 1.8 2.1
 Foreign
 Yen-denominated
30 0.4 0.4 interest-bearing
 2.0 0.5 0.5 stocks, etc. 7.3% assets
 1.2 1.3 2.4 2.5
 0.5 0.1 0.3 Other securities 52.1%
 1.0
 0.0 1.8 1.7
 1.9 Domestic
 stocks 40.0%
 9.5 9.4 Foreign-currency
 8.2 8.5 denominated
 7.6 foreign bonds1 27.1%
20
 Monetary claims
 0.5 0.4 bought 1.3% 6.2%
 0.2 0.3
 1.6 1.5 0.3
 1.6
 1.5 1.6
 Yen-denominated
 4.6%
 1.9 2.1 foreign bonds2
 2.7 2.8 2.0 Domestic bonds Loans
 Yen-denominated foreign bonds Monetary claims bought
 Loans Foreign-currency denominated foreign bonds Domestic stocks
 Other securities Foreign stocks, etc.
10 Unrealized Gains/Losses in GA Assets
 Domestic (Non-consolidated)
 bonds JPY bn
 12.5 12.9 13.2 13.8 13.9
 As of Mar 2021 As of Sep 2021
 change
 Yen-denominated Securities 3,694.1 3,810.0 +115.9
 17.2 17.6 17.3 17.9 18.1 interest-bearing
 Held-to-maturity debt securities 261.3 254.6 (6.7)
 assets
 Policy-reserve-matching bonds 1,597.1 1,587.7 (9.4)
0 Available-for-sale securities 1,840.9 1,972.7 +131.8
 Mar 18 Mar 19 Mar 20 Mar 21 Sep 21 Domestic stocks 1,222.5 1,285.0 +62.4
 Foreign securities 521.9 570.4 +48.4
1 Foreign currency-denominated foreign bonds (including those issued by residents) include currency-hedged foreign bonds
2 Yen-denominated foreign bonds include foreign currency-denominated foreign bonds with a fixed amount in Japanese yen *See page 51 for details
 21

Profile of Domestic Bonds
 Strengthen domestic interest rate risk management based on ALM strategy

 Domestic Bonds by Maturity Domestic Bonds by Category
 (GA・non-consolidated) (GA・non-consolidated)
 ＜As of September 2021＞
 5 years or less
 Domestic Bonds Outstanding Balance：
 Between 5 to 10 years
JPY tn More than 10 years or no fixed maturity JPY 14.56tn (USD 130.0bn)
 14.4 14.5
14 13.8
 13.3 1.1 1.4
 13.0 1.0
 0.9 18.5%
12
 1.0

 2.4 4.3 4.3
 2.2 3.6 1.9%
10

8

 79.6%
6

 10.0
 9.6 8.9 8.7
 9.0
4

2 Policy-reserve matching bonds

 Held-to-maturity debt securities

0 Available-for-sale securities
 Mar 18 Mar 19 Mar 20 Mar 21 Sep 21
 22

Asset Management Strategy for 2H FY2021
In 2H FY2021, investments will be made based on the asset management policy, while paying attention to various risks.
 We will increase investment in credit assets and domestic/foreign stocks without increasing the total amount of asset
 management risk by steadily reducing domestic interest risk, in order to enhance profitability in the low interest rate
 environment
 Asset Management Strategy for 2H FY2021

 ALM Investment Portfolio Balanced Investment Portfolio

 ・Invest in foreign credit assets while taking ・Increase investment in domestic and foreign
 hedging costs into account, and consider stocks that are undervalued from a mid- to long-
 Increase further investment in the event of rising term perspective
 Investment interest rates
 ・Increase investment in unhedged foreign bonds,
 Earnings ・Increase alternative investments while taking levels of interest rates and foreign
 Promote
 ・Consider investing in high quality real estate exchange rates into account
 Respon-
 sible
 ・Steadily invest in super long-term bonds and
 Invest-
 new schemes while paying attention to the ・ diversify the portfolio, and make prudent
 ment
 trend of interest rate, and consider further selectioThoroughlyn taking the post-pandemic
Strengthen investment in the event of rising interest rates situation into account
Risk Control ・Build hedge position of stocks and foreign
 ・Thoroughly diversify the portfolio, and make
 prudent selection taking the post-pandemic exchange rates in case of decline in market
 situation into account

 ・Accelerate human resource development
Strengthen
 ・Develop IT strategy for medium- to long-term asset management, reinforce platform
 Asset
 ・Expand entrusted assets, and promote full outsourcing of overseas corporate bond management to Symetra
Management Investment Management
 Platform ・Research and expand alternative investments

 23

Major Initiative for Responsible Investment
 Accelerate decarbonization of asset portfolio in 1H. Steadily implement thematic investment.
Promote ESG integration of all assets through dialogue with investees on their decarbonization initiatives in 2H.

 Initiative to Achieve Net Zero of Asset Portfolio
 NEW (2021/10) NEW (2021/8) NEW (2021/10)
 Net-Zero Net-Zero
 Asset Owner Alliance Asset Owner Alliance
 Measurement & Target Setting Information
 Commitment Action
 Scenario Analysis Disclosure

 April 2021: Announced Measure GHG emissions June 2021:Set a reduction Promote dialogue with October 2021: Release
 net-zero GHG emissions from the asset portfolio. target of -42% by 2030 companies with top Responsible Investment
 by 2050 Next challenges will be (compared to fiscal 2019) in GHG emissions to Activities Report
 enhancements of aspects our asset portfolio encourage (GHG emissions, etc.)
 such as scenario analysis decarbonization

 Implementation of the Thematic Investment
 Target amount (Fiscal 2020 - 2022) Results (1H 2020 - 2021)

 Thematic investment Cumulative: ¥500.0 billion Approx. ¥240.2 billion (¥94.5 billion for 1H 2021)

 Promote ESG Integration of All Assets
 1H FY2021 2H FY2021 (planned)
 ✓ Clarify the process of real estate and project financing ✓ Clarify the process of entrusted assets and
 ✓ Start considering sovereigns securitized products, etc.

 24

① Multi-Channel and Multi-Product Strategy

② Asset Management

③ Sustainability

④ Overseas Business Development

⑤ Capital Policy

 25

Initiatives in FY2021
We continued to implement sustainability initiatives as in FY2020. Various reports have been newly published to
 report the status of our efforts to promote sustainability.
 Formulation of an “Action Plan Launch of new products contributing to solving
 for Promoting Participation by Women” social issues
Set a target for female employees in managerial Launched an ESG-focused investment product that
positions by the end of FY2025, with an aim to further mainly invests in Japanese stocks for corporate pensions
promote the active participation of diverse talents
 Goal for the end of FY2025
 April 2020 (Product name)
 Group annuity separate
 account “Yen-denominated
 stocks account E”
 (ESG investment)

 Publication of the Responsible
 Publication of the Sustainability Report
 Investment Activities Report
Newly published the Sustainability Report in September Published the Responsible Investment Activities Report
2021 (comprehensive description of the approach and in October 2021 (the previous “Stewardship Activities
efforts for promoting sustainability) Report” was renamed after information on ESG
 investment and other initiatives was added)

 26

External Initiatives
 Participation in External Initiatives

【Environment (E) related】 【Society (S) related】

 New New
 AOA
 ・An international initiative that aims to
 achieve the Paris Agreement's goal of
 Net-Zero limiting temperature rise to 1.5°C
 through the cooperation of asset owners.

 Asset Owner Under the leadership of the United
 Nations Environment Programme Finance

 Alliance Initiative (UNEP FI) and the Principles for
 Responsible Investment (PRI), the AOA has
 been active since 2019.
 ・Sumitomo Life joined AOA in October
 2021.

 27

① Multi-Channel and Multi-Product Strategy

② Asset Management

③ Sustainability

④ Overseas Business Development

⑤ Capital Policy

 28

Overseas Business Expansion

 Stable revenue base in Japan, steady growth in the U.S. and high growth in Asia
 Established a business portfolio with stability and growth potential

 Track Record of Overseas M&A
 2019 2020
 Singapore Singｌife completes merger
 2014 Investment in Singｌife1 transaction with Aviva Ltd
 Indonesia (Ownership: 20.74%) (“Aviva Singapore”)1
 Investment in BNI Life ◼ Strengthened our ability in gathering information on
 (Ownership: 39.99%) Insurtech
 2013 2016
 2005 Vietnam US
 Investment in Baoviet HD Acquisition of Symetra
 China
 (Ownership: 22.08%) (Ownership: 100%)
 Establishment of PICC Life
 (Ownership: 10%) ◼ Shared PICC’s business ◼ Increased the size of overseas
 knowledge with Vietnam business through expanding
 and Indonesia into the U.S. market
 United States
 Japan Asia (China, Vietnam, Indonesia, Singapore)
 ~ Steady Growth / The Largest
 ~ Stable Revenue Base ~ ~ High Growth Market ~
 Market ~
 ◼ The second largest market in the world ◼ China has the largest population in the world and its ◼ The largest market in the world
 insurance market is still growing
 ◼ Less growth potential due to the trend ◼ Benefit from steady growth in the U.S.
 of declining population, but stable ◼ Rapid growth is expected in the future in Vietnam/Indonesia insurance market through Symetra,
 underwriting income resulting from our 100% subsidiary
 ◼ Development of Insurtech is flourishing in Singapore
 mortality gain is expected
 ◼ Benefit from growth opportunities through technical
 ◼ Our home market which supports our
 assistance including channel development, risk
 stable revenue base
 management, system development and asset management
1. Invested in Singlife in 2019. In November 2020, Singlife merged with Aviva Singapore, one of the largest domestic insurance companies. We made an additional investment to support
 the transaction. Following the transaction, our equity interests in Singlife were exchanged for those of Aviva Singlife Holdings Pte., Ltd, a holding company which was newly established.
 29

Initiatives in the U.S. Market ①
 Symetra has solid business base across the U.S.
 Capture steady earnings resulting in improved earnings base and risk diversification.
 Business Development in the U.S. - Symetra (100% subsidiary)
 Total Revenues and Total Assets (USD mn)
 ◼ 100% acquisition of Symetra Financial Corporation （JPY 6,683.0bn1) 5,000
 70,000
 (February 2016) 58,911 60,436
 60,000 55,535
 4,000
 ◼ Number of employees (Consolidated): Approx. 1,900 50,000
 49,263
 42,865
 40,000 2,650 3,000
 ◼ RBC Ratio (Risk Based Capital)*: 422% 2,481 2,298 2,239 （JPY 167.4bn1)
 30,000
 (As of December 31, 2020) 1,514
 2,000
 *Calculated without considering 50% of the risk profile (denominator) 20,000
 1,000
 ◼ Ratings: A (S&P), A1 (Moody’s), A (AM Best) 10,000
 0 0
 Dec 17 Dec 18 Dec 19 Dec 20 Jun 21
 Total Asset（Left Axis） Total Revenue（Right Axis）

 Conservative Investment Policy
 – Asset Management Portfolio
 Synergy Effects
＜As of June 2021＞
 Limited
 Product ・Leveraged Symetra’s expertise to commence
 Stocks Partnership Others sales in Japan of a fixed indexed annuity product,
 0.2% 1.0% 1.9% Development
 one of Symetra’s core products
 ・Sharing information about the markets and certain
 CMLs issuers, placing orders for U.S. corporate bonds
 15.6% Corporate through Symetra
 Bonds, etc. Asset
 ・Plan to expand the outsourcing of asset
 Management management for investment grade corporate bonds
 81.4%
 entrusted to Symetra Investment Management, and
 reach an entrusted asset balance of 2 trillion yen.
 ◼ 52.2% for A and above (JPY 5,436.2bn1)
 ◼ 97.0% Above IG Total: USD 49.1bn ・Sumitomo Life and Symetra are dispatching
 IT personnel to a base in Silicon Valley to gather
 information on FinTech activities
1. USD 1 = JPY110.58 (as of June 30, 2021)
 30

Initiatives in the U.S. Market ②
 Symetra has a balanced business portfolio, and each business line has shown stable growth
 even in amidst of the COVID-19 pandemic.
 Balanced Business Portfolio
 Summary P&L
 – Ordinary Income by Segment
 USD (mn)
 ＜As of June 2021＞ Year ended Year ended
 Six months
 ended
 Dec 31, 2019 Dec 31, 2020
 Jun 30, 2021
 1
 Adjusted pre-tax income 172.3 130.4 118.1
 Benefits 33.9 12.9 39.6
 Individual Retirement 137.8 128.8 79.8
 Life Individual Life 24.6 8.7 4.4
 Retirement Other (24.0) (20.0) (5.7)
 25.4%
 Add (deduct) the following: (549.6) (290.3) 3.5
 35.0%
 Excluded realized gains (losses) (63.3) (37.4) 18.7
 Amortization of intangible assets (87.3) (143.2) (64.5)
 Benefits Closed Block results (399.0) (109.7) 49.3
 Income (loss) from operations before income tax (377.3) (159.9) 121.6
 39.6%
 Total provision (benefit) for income taxes 111.8 68.4 (25.4)
 Net income (loss) (265.5) (91.5) 96.2

 Ordinary Income from Ordinary Income from Ordinary Income from
 Retirement Benefits Individual Life
USD (mn) USD (mn) USD (mn)
 1,000 905 962 1,400 800
 1,190 1,175
 785 1,200 625 670
 800 711 1,025 569
 911 600
 （JPY 55.9bn2) 1,000 513
 600 （JPY 63.2bn ) 2
 （JPY 40.6bn2)
 505 800
 571 400 367
 400 600
 400
 200 200
 200
 0 0 0
 Dec 17 Dec 18 Dec 19 Dec 20 Jun 21 Dec 17 Dec 18 Dec 19 Dec 20 Jun 21 Dec 17 Dec 18 Dec 19 Dec 20 Jun 21
1 Income from operations before income taxes, excluding results from closed blocks, intangible asset amortization and certain net realized gains (losses).
2. USD 1 = JPY110.58 (as of June 30, 2021)
 31

Initiatives in the Asian Market
 Partner with local leading companies in the Chinese, Vietnamese, Indonesian and Singaporean markets.
 The companies we have invested in have shown stable growth and contributed to our profit.
 In Singapore, two life insurance subsidiaries of Aviva Singlife Holdings are scheduled to be integrated early next year.

 China Vietnam
 ◼ Establishment of PICC Life Insurance Company (November 2005) ◼ Investment in Baoviet Holdings (March 2013)

 PICC Life’s Total Premium Income Baoviet’s Premium Income from Life Insurance
 CNY bn VND bn
 120 106.2 30,000 28,046
 93.7 98.1 96.1 1 25,452
 100 (Approx. JPY1,097.9bn ) 25,000 (Approx. JPY70.6bn1)
 21,507
 80 64.1 20,000 17,476 14,704
 60 15,000
 40 10,000
 20 5,000
 0 0
 Dec 17 Dec 18 Dec 19 Dec 20 Jun 21 Dec 17 Dec 18 Dec 19 Dec 20 Jun 21

 Indonesia Singapore
 ◼ Investment in BNI Life, a subsidiary of Bank Negara Indonesia ◼ Investment in Aviva Singlife Holdings2 (June 2019)
 (BNI) (May 2014)
 IDR bn BNI Life’s Total Premium Income Aviva Singapore’s Total Premium Income
 5,710 5,568 SGD mn
 6,000
 4,754 4,600 4,000 3,791
 5,000
 4,000 (Approx. JPY17.3bn1) 3,000 2,503 (Approx. JPY163.7bn1)
 1,978 1,992
 3,000 2,254 2,000
 2,000
 1,000
 1,000
 0 0
 Dec 17 Dec 18 Dec 19 Dec 20 Dec 21 Dec 18 Dec 19 Dec 20 Jun 21
Source: Company disclosure
1. CNY1 = JPY17.12, VND1 = JPY0.004802, IDR1 = JPY0.0077, SGD1 = JPY82.18 (as of June 30 2021).
2. Invested in Singlife in June 2019. Following the business combination of Singlife and Aviva Singapore, our equity interests in Singlife were exchanged for those of Aviva Singlife
 Holdings Pte., Ltd , a holdings company which was newly established. We made an additional investment to support the transaction.
3. Aviva Singlife’s operating results are based on the combined figures of the two life insurance subsidiaries (consolidated figure for six months ended June 30, 2021 and the simple
 sum of the two companies for the periods before the year ended Dec 31, 2020).
 32

COVID-19 Situation in countries where we operates

 U.S. China

 Population ： 0.33bn 16000
350000 Population ： 1.4bn
 1 14000
300000 Total Cases ： 46,693,102 1
 12000 Total Cases ： 98,016
250000
 Total Deaths1： 757,291 10000 Total Deaths1： 4,636
200000
 8000
150000 6000
100000 4000
50000 2000
 0 0

 新規感染者数
 New cases 死亡者数
 Deaths ７日平均新規感染者数
 7-day average of new cases 新規感染者数
 New cases 死亡者数
 Deaths ７日平均新規感染者数
 7-day average of new cases

 VIetnam Indonesia Singapore
 6000
20000 60000
18000 Population ： 90mn Population ： 0.27bn 5000 Population ： 5.69mn
16000 50000
14000 Total Cases1 ： 984,850 Total Cases1 ： 4,248,843 4000 Total Cases1 ： 224,200
12000 40000
10000
 Total Deaths1： 22,686 Total Deaths1： 143,578 3000 Total Deaths1： 523
 30000
 8000
 20000 2000
 6000
 4000 1000
 10000
 2000
 0 0 0

 New cases
 新規感染者数 死亡者数
 Deaths New cases
 新規感染者数 Deaths
 死亡者数 New cases
 新規感染者数 死亡者数
 Deaths
 ７日平均新規感染者数
 7-day average of new cases ７日平均新規感染者数
 7-day average of new cases ７日平均新規感染者数
 7-day average of new cases

 Source： Our World in Data
 Note: As of 9 November 2021
 33

① Multi-Channel and Multi-Product Strategy

② Asset Management

③ Sustainability

④ Overseas Business Development

⑤ Capital Policy

 34

External Capital

 Philosophy Behind External Capital

 In building core capital, we focus on enhancing internal reserves and surplus, and view external capital as a
 complement. We will secure a sufficient capital level, considering the current solvency regulation and new
 economic value-based capital regulation, which we expect to be implemented in the near future.

 Total Balance of External Capital
 Total Balance of External Capital: JPY600.5bn

 redeemed US$
 Sub. bond US$
 Sub. bond
 USD1.34bn
 US$ USD920mn
 (JPY
 Sub. bond (JPY
 145.44bn)
 Sub. bond USD1bn 100.5bn)
 Sub. bond (JPY Sub. loan
 JPY84.0bn
 99.48bn) Sub. bond
 JPY70.0bn JPY70.0bn
 Sub. Loan JPY10.0bn
 JPY 50.0bn
 Sub. bond
 JPY30.0bn Sub. bond
 JPY11.0bn
 FY21 FY22 FY23 FY24 FY26 FY27 FY30 FY31
Note: As of Octoberl 31, 2021. The first call maturity coming year for subordinated loans / bonds
 35

Capital Adequacy (Economic Value Basis)
 Appropriately control the balance between risks and risk buffers in consideration of future changes in
 circumstances such as the regulatory environment.
 The capital adequacy ratio as of the end of September 2021 (ESR, preliminary figure) is 217%.

 ESR1 Sumitomo Life’s Risk Management System
 (preliminary figure) Current
 JPY bn
 215% 217%
 6,000 Risk management based on the requirement by the
200% regulatory authorities
 5,000 ・Solvency margin ratio, etc.
 159%
150% 4,000
 Risk management based on internal control
 3,000 (economic value) (from FY2009)
100% ・ESR monitoring: Confirmation of the adequacy of capital, etc.
 ・Stress testing: Check the impact under multiple risk scenarios
 2,000

50%
 1,000 Future
 (Economic value-based solvency regulation in Japan, 2025 at the earliest)

 0% 0 Risk management based on the requirement by the
 Mar 20 Mar 21 Sep 21 regulatory authorities
 Risk Buffer Risk Amount ESR (left axis) ・Details have not been confirmed

 Mar 20 Mar 21 Sep 21 Change
Newly Issued 30yr JGB 0.420% 0.665% 0.670% +0.005% Risk management based on internal control
TOPIX (Closing Price) 1,403.04 1,954.00 2,030.16 +76.16 (economic value)
 ① ② ②-① ・Make adjustments to internal risk management as necessary,
 taking into account the requirement by regulatory authorities
 1. The risk amount is calculated using an internal model with a confidence level of 99.5% (holding
 period of 1 year). The calculation of economic value-based capital amount and risk amount uses
 an ultimate forward rate for setting super long-term interest rate.
 36

Introduction of Economic Value-Based Capital Regulation
 Timeline for the Introduction of Japan’s Economic Value-Based Solvency Regulation
 Indicated by the Study Group

 2019 2020 2021 2022 2023 2024 2025
 …
 Pillar 1 Refinement of
 Tentative Develop-
 Domestic Solvency Study Report
 Study for the decision technical Finali- ment of
 Frame- regulation Group release formulation of tentative on the specifications and zation practical Implementation
 specifications specifi- development guidance of the economic
 work towards finalization
 cations
 value-based
 solvency
 Incorporation in the study on specifications as necessary framework
 (April 2025)
 Field testing

 Pillar 2 Utilizing the results of the field testing for supervisory dialogue with insurers
 Risk
 manage- Considering revision/abolition of financial accounting, risk information, etc.
 ment and based on economic value base
 super-
 visory Continuing & strengthening dialogue with insurers on internal control based
 review
 on economic value
 Pillar 3
 Study on
 Information Developing details of the
 disclosure the outline of the
 disclosure requirements
 disclosure requirements

 Global
 ICS monitoring period Applicable as a
 Completion Economic impact Finali- standard for regulatory
 Frame- Review of specifications based on the reporting by IAIGs Consul- assessment
 of ICS tation zation intervention in each
 work Consideration of comparability with the Aggregation Method Comparability
 Ver 2.0 assessment country

1. Internationally Active Insurance Group. IAIG is selected with the following criteria by national authorities: (1) Premiums are written in at least three jurisdictions and at least 10%
 of the group’s gross written premium (GWP) is from outside the home jurisdiction; and (2) Total assets of not less than USD 50 billion or GWP of not less than USD 10 billion.
 37

Ⅲ. Appendix

 38

Domestic Life Insurance Market

 The life insurance market in Japan has grown by 2.1% CAGR over the last 10 years,
 driven primarily by the third-sector insurance.

 Trend of Annualized Premiums from Policies in Force1
 JPY bn
 30,000 27.0%
 25,000 26.0%
 20,000 25.0%
 15,000 24.0%
 10,000 23.0%
 5,000 22.0%
 0 21.0%
 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

 Annualized premiums from policies Annualized premiums from policies Ratio of Third-sector products (Right-Axis)
 in force of Third-sector products in force excluding Third-sector products

 Survey on Life Protection (FY2019)

 11% 4% 5% 6%
 23% 12% 15% I am currently
 30% Totally insufficient 16%
 making preparations
 49% 38% Somewhat
 69% 66% 75% I will make preparations
 73% insufficient 76%
 60% 46% within several years
 45% 53%
 43% 8% Do not know
 I will prepare
 9%
 Somewhat at some point
 37% sufficient
 12% 29%
 18% 20% Do not have intention of
 20%
 14% 2% Sufficient 7% 5% 6% making any preparations
 7% 3%
 Nursing Care Medical Annuity Nursing Care Medical Annuity Do not know
 Feelings Regarding Sufficiency Intention to Make Future Preparations

Source: The Life Insurance Association of Japan, Japan Institute of Life Insurance “Survey on Life Protection”
1 Excluding Japan Post Insurance
 39

Attractive Domestic Business Model
 We offer broad insurance products with a focus on protection products in highly profitable individual life insurance.
 Even under the low-interest rate environment, we have maintained profitability mainly thanks to our stable insurance
 underwriting profit.

 Business / Product Portfolio Gain from Insurance Activities / Interest Gain
 (Non-consolidated) (Non-consolidated)

 ＜As of September 30, 2021＞ ＜1H FY2021＞
 Group annuities
 JPY bn
 Business Portfolio 2.5%
 200
 (Policies in force)

 Group life
 31.1%
 150
 Individual life
 52.4%

 112.4
 Individual annuities
 100
 13.9%
 Product Portfolio
 (Individual insurance, annualized premiums from policies in force)

 Individual annuities Individual life 50
 (Excl. third sector) (Excl. third sector)
 34.5% 41.0% 65.3

 0
 Third sector Interest gain
 (Living benefit +
 Medical/Nursing care) Gain from insurance activities
 24.5%

Source: Company Disclosures
 40

How Vitality Program Works
 A proprietary program developed by Discovery had been localized by Sumitomo Life to adapt to the local
 lifestyles, guidelines, etc. in Japan.
A framework consists of three steps to assist program members to enjoy the program and become healthier.

 How Vitality Program Works

 Step 1 Step 2 Step 3
 Know Your Health Improve Your Health Enjoy Rewards

 ・As a first step, complete health ・Earn points by engaging in ・Rewards provided according to
 check and other activities to know physical activities such as walking member’s engagement level.
 one’s health and earn points. a little more.

 ・Rewards to improve the health ・Boost motivation for sustained
 ・Rewards to know the health
 conditions. engagement.
 conditions.

 Vitality Status and Points Illustrative Premium Flex Design

 Blue Bronze
 0pt ~ 12,000pt ~ -15%

 ( -1% )
 -30%
 Silver Gold -15%

 20,000pt ~ 24,000pt ~ ( -2% )

 41

Global Network of Vitality
Discovery has a global network of Vitality with over 20 million members across 30 countries and regions
 worldwide (as of June 30, 2021).
 Sumitomo Life is the exclusive partner insurer for the Japanese market.

 Global Network of Vitality1

 Established 1992
 Representative Adrian Gore, Group Chief Executive
 Head office Sandton, Johannesburg, South Africa
 Stock listing Johannesburg Stock Exchange (JSE)
 Total assets (as of June 30, 2021) ZAR 246,694 million (JPY 1,820.6 billion)2
 1 Each country and region has its own point distribution standards, status levels and other aspects of the Vitality program
 2 ZAR 1 = 7.38 JPY (exchange rate as of September 30, 2021); Discovery Limited’s financial year end is June 30
 42

AIARU Small Amount & Short Term Insurance
 Acquired AIARU Small Amount & Short Term Insurance Co., LTD as a subsidiary in August 2019,
 and built a flexible product development structure consisting of Sumitomo Life, Medicare Life and AIARU

 Small-amount and Short-term Insurance Business
Deals only with the underwriting of protection-type insurance products, in small insurance amounts in short insurance
terms of one year (two years for non-life insurance) within a certain business scale
＜Key differences between regulations on insurance companies and on small-amount and short-term insurance companies＞
 Insurance companies Small-amount and short-term insurance companies
 Conditions for market License granted by Commissioner of the
 Registration with a local finance bureau
 access Financial Services Agency
 Annual insurance premiums receivable of no more than
 Business scale No limit
 JPY 5 billion1
 Product examination Approval (notification for some products) Notification
 Limit on insurance amount Limit on insurance amount per insured person, depending on
 No limit
 (original rule) the insurance category (maximum of JPY 10 million)
 Limit on insurance term No limit One year (two years for non-life insurance)
 1 Calculated by adding reinsurance recoverables and reinsurance fees to insurance premiums receivable in one business year, and then subtracting reinsurance premiums
 and premium refunds for policy surrender.

 Overview of AIARU AIARU's Strengths
 AIARU Small Amount & Short Term AIARU has developed many unique products, based on
 Company name
 Insurance Co., LTD.2 the concept of developing original insurance products
 Establishment April 1984 that meet market needs.

 Katsuyuki Ando, ＜Key products＞
 Representative
 President and Representative Director
 Head office Nihonbashi Odenmacho, Chuo-ku, Tokyo

 Capital JPY 299.4 million3
 2 In February 2011, Gakuso Co., Ltd. and Rise Small Amount & Short Term Insurance Co., LTD. merged to become AIARU Small Amount & Short Term Insurance Co., LTD.
 3 As of September 30, 2021
 43

“Well Aging Support- ASUNOEGAO”

Sumitomo Life and AXA Life jointly developed a long-term care service that realizes total coordination of long-term care.
 The service was introduced nationwide from April 1, 2021.

 Business Alliance with AXA Life Key Services of ASUNOEGAO

 October 2018
 ASUNOEGAO call center
 Basic agreement on a business alliance for joint
 development and usage of long-term care services ◇Consultation on various topics related to long-term care
 ◇Introduction to and information on long-term care facilities
 ◇Consultation on public long-term care insurance system

 October 2019 Introduction according to
 Introduced the “Well Aging Support- ASUNOEGAO” content of phone
 consultation
 service in certain areas

 Face-to-face Long-term care
 consultation about prevention / QOL
 April 2020 long-term care enhancement
 Expanded menus of “Well Aging Support- facilities support service
 ASUNOEGAO”
 Long-term care / Asset management
 Living-support service support service

 April 2021
 Launched “Well Aging Support- ASUNOEGAO”
 nationwide

 44

Effects of Symetra’s Reinsurance Transaction
 Effects of the reinsurance transaction to Symetra’s GAAP-based income could be expected decrease gradually

 Positive Impacts
 Overview of the Reinsurance Transaction from the Reinsurance Transaction
 ・Reduced exposure to long-term interest rate risk associated Economic ・Contributed to an increase of EV
 with the long-tail nature of the business through entering into a Value (JPY4.4 billion)
 reinsurance transaction in September 2018
 ・Avoided future losses by reducing the risk
 ・The modified coinsurance structure of the transaction requires Statutory of additional cash flow testing reserve
 that Symetra continues to hold the associated invested assets Income expected with the assumption based on
 and liabilities on its balance sheet (Loss) the interest rates at the time of entrance of
 ・Investment returns etc. belongs to the Reinsurer on a statutory reinsurance agreement
 accounting basis
 Financial ・RBC ratio improvement
 ・Asset management is executed under the instruction of the Strength ・Reduced exposure of equities
 Reinsurer

 Effects of the Transaction to Symetra’s GAAP-Based Income (Loss)
Accounting Impact #1: Positive impact to GAAP net income (loss) (USD mn)
 Six months
of Symetra when interest-rates hike (negative impact at the time of Year ended Year ended
 ended
 December December
interest-rates decline) June 30,
 31, 2019 31, 2020
 2021
Based on the GAAP accounting rules, amounts equivalent to unrealized
gains of bonds in the reinsured business are booked as losses for Adjusted pre-tax income1 172.3 130.4 118.1
Symetra via FV changes of embedded derivatives in insurance liabilities. Add (deduct) the following: (549.6) (290.3) 3.5
 Excluded realized gains (losses) (63.3) (37.4) 18.7
 Amortization of intangible assets (87.3) (143.2) (64.5)
Accounting Impact #2: Negative impact to GAAP net income (loss)
 Closed Block results (399.0) (109.7) 49.3
of Symetra on sale or maturity of bonds
 Income (loss) from operations
Quarterly gains (losses) of the reinsured business are passed to the (377.3) (159.9) 121.6
 before income tax
Reinsurer on a statutory accounting basis and is neutral to statutory Total provision (benefit) for
earnings of Symetra. However, GAAP BV of bonds held by Symetra is 111.8 68.4 (25.4)
 income taxes
higher than statutory BV due to revaluation when Sumitomo Life
 Net income (loss) (265.5) (91.5) 96.2
acquired Symetra (PGAAP).
1 Income from operations before income taxes, excluding results from closed blocks, intangible asset amortization and certain net realized gains (losses).
 45

Initiative to Sustainability①

 Our Vision
 We aim to contribute to the realization of a society of affluence, vitality, health and longevity
 through the sound operation and development of the insurance business.
 Extending healthy life Provision of sense of
 expectancy through the security through the
 insurance business insurance business
 Realization of sustainable Building mutual trust with Management structure
 and stable growth stakeholders that supports CSR

 To be an “Indispensable” Insurance Company for Society
 Towards a Society of Affluence,
 Approach to a Sustainable Society
 Vitality, Health and Longevity
 Social issue of “extending healthy life expectancy” Corporate philosophy of “contributing to the advancement of
 social and public welfare”

 Implementation of CSV Project1 Enhancing corporate value through addressing
 (Promote health enhancement across society and health-focused social issues in the main business (=CSV) will
 management through the provision of SUMITOMO LIFE Vitality) lead to the achievement of the SDGs
 Contribute to the achievement of the SDGs through
 Aim to realize a society of affluence, vitality, health and providing attractive insurance products such as
 longevity by creating a shared value of health
 SUMITOMO LIFE Vitality and solving social issues
 enhancement among customers, society, and the
 through responsible investment and social contribution
 Company and our employees
 programs

1. CSV is abbreviation of Creating Shared Value and a business concept which means achieving both resolving social challenges and increasing corporate value (including profit and competitiveness).
 Please see page 46 for details.

 46

Initiative to Sustainability②
 It implements initiatives to achieve the SDGs, with a focus on contributing to a healthy and long-living society
 through SUMITOMO LIFE Vitality.
 Discuss Sustainability initiatives by the Sustainability Promotion Council

 CSV1 Project Sustainability Promotion Council
 Contribute to the realization of a healthy and long-living Promote the sharing of social and environmental
 society through the provision of SUMITOMO LIFE issues, such as SDGs, as well as initiatives to solve
 Vitality Shared-Value Insurance, promotion of health them
 enhancement and health-focused management

 Customers Board of Directors

 Vitality
 ４ １ Executive Management Committee
 CSV
 Project
 ３ ６
 Promotion Health-
 of health focused Sustainability Promotion Council
 enhancement management (Secretariat: Corporate Planning Department,
 Company
 Society ２ ５ Employees
 Brand Communication Department)

(1) Contribute to health enhancement of customers through SUMITOMO LIFE
 Vitality Promotion of Sustainability Initiatives
(2) Convey the importance and value of health enhancement to the world
(3) Contribute to a “healthy and long-living society” by enhancing health of ・ Discussion and review of initiatives to achieve the SDGs
 customers
(4) Those who understand the importance and value of health enhancement ・ Information sharing on social and environmental issues, etc.
 become new customers
(5) Cultivate pride and job satisfaction by contributing and being indispensable to
 the society
(6) Positive evaluation as an entity that supports health

1. CSV is abbreviation of Creating Shared Value and a business concept which means achieving both resolving social challenges and increasing corporate value (including
 profit and competitiveness).
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Initiative to Sustainability③
 Promote Responsible Investment after setting Basic Principles on Responsible Investment
 and social issues to be focused on

 Basic Principles on Responsible Investment
1 The Company shall systematically consider non-financial information including ESG factors and make investment decisions based on the
 characteristics of each asset.
2-1 In stewardship activities, the Company shall accurately assess the conditions (including sustainability) of portfolio companies, seek to share mutual
 understanding with them through dialogue and exercising voting rights, encourage them to improve problems, and promote their medium- to long-
 term corporate value improvement and sustainable growth.
2-2 The Company shall request companies that it engages in dialogue with to appropriately disclose information on ESG issues.
2-3 The Company shall establish guidelines that clarify the criteria for exercising voting rights and other related matters, and exercise voting rights
 accordingly.
2-4 The Company shall perform stewardship activities in accordance with the Sumitomo Life Group Code of Conduct, the Conflict of Interest
 Management Policy, and the Conflict of Interest Management Regulations, while complying with laws, regulations and provisions related to the
 management of conflicts of interest.
3 In addition to individual dialogue, the Company shall collaborate with other institutional investors to resolve globally important ESG issues such as
 climate change response through participation in Japanese and overseas initiatives. The Company shall also endeavor to promote responsible
 investment by actively participating in various meetings held by such initiatives, etc.
4 The Company shall publicly disclose information on its efforts for responsible investment (including the disclosure items stipulated by the
 Stewardship Code) via its website and by other means, and regularly update the information.
5 To appropriately implement the PDCA cycle, the Company shall set up the “Responsible Investment Committee” and establish other structures as
 necessary, while aiming to develop human resources with necessary skills and knowledge.

 Social Issues to be Focused on Through Responsible Investment
 An urgent issue for the whole world and an important issue that could cause damage to the
 Climate change response asset value. We will encourage the transition to a carbon-free society through responsible
 investment.
 Health and welfare / As a life insurance company, we will address the issues of health and welfare and aging
 Aging population population, including COVID-19 response.

 We will promote the medium- to long-term corporate value improvement of portfolio companies
 Economic growth through dialogue and contribute to the growth of the Japanese economy as a whole, including
 (including diversity) regional economies. We will also address diversity, including the active participation of women,
 as an important issue.

 Development of social As an institutional investor who manages assets over the medium- to long-term, we will provide
 infrastructure medium- to long-term funding for the development of social infrastructure.

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