Life Insurance Operations

12 Months Ended

Mar. 31, 2014

23. Life Insurance Operations

Life insurance premiums and related investment income in fiscal 2012, 2013 and 2014 consist of the following:


	Millions of yen
	2012		2013		2014
Life insurance premiums	¥	116,836	¥	130,187	¥	145,464
Life insurance related investment income		10,071		8,539		9,942

	¥	126,907	¥	138,726	¥	155,406

The benefits and expenses of life insurance operations included in life insurance costs in the consolidated statements of income are recognized so as to associate with earned premiums over the life of contracts. This association is accomplished by means of the provision for future policy benefits and the deferral and subsequent amortization of policy acquisition costs (principally commissions and certain other expenses relating to policy issuance and underwriting). These policy acquisition costs are amortized over the respective policy periods in proportion to premium revenue recognized. Amortization charged to income for fiscal 2012, 2013 and 2014 amounted to ¥7,307 million, ¥7,196 million and ¥9,701 million, respectively. The amount for fiscal 2012 is adjusted retrospectively due to the adoption of Accounting Standards Update 2010-26.