Japan Post Insurance declares its agreement with and acceptance of the provisions of the Asset Owner Principles in fulfilling its responsibility to take into account the best interests of beneficiaries when managing their assets.

The Principles were formulated as part of asset ownership reform efforts under the "Policy Plan for Promoting Japan as a Leading Asset Management Center " promoted by the Government of Japan, and they establish a set of common principles that are useful for asset owners to fulfill their responsibility to manage their assets, taking into account the best interests of beneficiaries.

Japan Post Insurance pursues the best interests of its beneficiaries and contributes to the creation of social value by practicing the five Principles through the following initiatives.

• Japan Post Insurance plays the three roles of insurance company, universal owner, and listed company, and engages in asset management with the goal of earning steady investment income for all of its stakeholders over the medium and long term.
• Since life insurance is a long-term financial product, in order to ensure that future insurance claims are paid out, our basic policy is to make steady investments using ALM(Note 1), with a focus on national government bonds, under an ERM(Note 2) framework. Moreover, our basic investment policy is to improve profitability by promoting the diversification of investments while conducting asset management with appropriate risk management.
• Decisions regarding this investment policy are made at Board of Directors meetings in the form of medium-term target portfolios and annual asset management policies, which are based on a review of the economic and financial environment over the medium and long term. The policy is reviewed as necessary in response to changes in the economic and financial environment.

(Note 1) ALM: Asset Liability Management

(Note 2) ERM: Enterprise Risk Management

• In addition to working to develop frameworks to secure the talents needed to realize the investment purpose and policies set forth by Principle 1, Japan Post Insurance implements efforts such as developing investment specialists and employing experienced talent. In addition, as a foundation to support asset management, we are working to strengthen our organizational structure and administrative and IT system framework.
• Whether assets are managed in-house or externally, we consider a wide range of investment methods to find the method best suited to the investment target, region, and asset class. In this way, we work to develop a system to improve investment income.

• Japan Post Insurance aims to improve risk-return by formulating a medium-term target portfolio to ensure steady revenue over the medium term, and building up return-seeking assets while striving for risk diversification. Stringent risk management is conducted to ensure that investment risk remains within the risk tolerance set by the Company.
• When selecting external investment trustees, we select the optimal trustee based on an assessment of their investment targets and systems, risk management system for conflicts of interest, etc., decision-making process, and fees. Furthermore, investment trustees are reviewed through periodic monitoring.
• We have also implemented efforts aimed at promoting Japan as a leading asset management center, such as developing a framework to actively promote the outsourcing of investment to "Emerging Managers" (EMs) with a low track record of investment.

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Our policy on outsourcing investment to Emerging Managers can be found here:
https://www.jp-life.japanpost.jp/information/press/2024/abt_prs_id001976.html

• Japan Post Insurance works to deepen the understanding of a wide range of stakeholders by providing information in a clear manner that is easy to understand. Information on the status of asset management ("visualization") is provided in the Annual Report and Responsible Investment Report as well as statutory and timely disclosure documents such as securities reports.
  We also strive to provide information in a manner suited to each stakeholder through General Meetings of Shareholders, briefings for individual investors, sustainability briefings, media on our website, IR activities, etc.

• As a responsible institutional investor that makes long-term investments, Japan Post Insurance has established policies that clarify our basic approach regarding sustainable investment, stewardship activities, and the exercising of shareholder voting rights. We conduct asset management in accordance with these policies and work to contribute to the sustainable growth of investee companies.
• To this end, in addition to responding to social demands such as compliance with the Japan Stewardship Code, we conduct stewardship activities in order to increase investment returns in the medium and long term, by enhancing the value of investee companies and promoting their sustainable growth.

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Stewardship Activities can be found here:
https://www.jp-life.japanpost.jp/english/aboutus/sustainability/esg/stewardship.html

• In addition, in 2017, Japan Post Insurance signed the PRI (Principles for Responsible Investment), and, as part of our ESG Investment Policy, we promote ESG investment efforts such as incorporating ESG factors into investment decisions for the Company's entire asset portfolio, and actively engaging in investments and loans intended to create an impact that contributes to solving social issues. Furthermore, we are committed to the continuous promotion and advancement of responsible investment through participation in domestic and international investment-related initiatives.

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Responsible Investment Report can be found here:
https://www.jp-life.japanpost.jp/english/aboutus/sustainability/esg/policy.html#res_inv_report