Investment in Securities (Tables)

9 Months Ended

Dec. 31, 2022

Investment in securities as of March 31, 2022 and December 31, 2022 consists of the following:


	Millions of yen
	March 31, 2022		December 31, 2022
Equity securities *	¥	560,643	¥	561,116
Trading debt securities		2,503		2,968
Available-for-sale debt securities		2,174,891		2,107,359
Held-to-maturity debt securities		114,312		114,757

Total	¥	2,852,349	¥	2,786,200

The amount of assets under management of variable annuity and variable life insurance contracts included in equity securities were ¥185,115 million and ¥149,314 million as of March 31, 2022 and December 31, 2022, respectively. The amount of investment funds that are accounted for under the equity method included in equity securities were ¥90,650 million and ¥90,709 million as of March 31, 2022 and December 31, 2022, respectively. The amount of investment funds elected for the fair value option included in equity securities, and others were ¥11,709 million and ¥15,002 million as of March 31, 2022 and December 31, 2022, respectively.

Summary of Impairment and Downward or Upward Adjustment Due to Changes of Observable Price

The following tables provide information about impairment and upward or downward adjustments resulting from observable price changes as of March 31, 2022 and December 31, 2022, and for the nine and three months ended December 31, 2021 and 2022.


	Millions of yen
	March 31, 2022							Nine months ended December 31, 2021					Three months ended December 31, 2021
	Carrying value		Accumulated impairments and downward adjustments			Accumulated upward adjustments		Impairments and downward adjustments			Upward adjustments		Impairments and downward adjustments			Upward adjustments
Equity securities measured using the measurement alternative	¥	58,723	¥	(13,880	)	¥	401	¥	(57	)	¥	69	¥	(38	)	¥	21

	Millions of yen
	December 31, 2022							Nine months ended December 31, 2022					Three months ended December 31, 2022
	Carrying value		Accumulated impairments and downward adjustments			Accumulated upward adjustments		Impairments and downward adjustments			Upward adjustments		Impairments and downward adjustments			Upward adjustments
Equity securities measured using the measurement alternative	¥	68,952	¥	(13,648	)	¥	1,530	¥	(368	)	¥	1,182	¥	0		¥	286

Amortized Cost Basis Amounts, Gross Unrealized Holding Gains, Gross Unrealized Holding Losses and Fair Values of Available-for-Sale Securities and Held-to-Maturity Securities in Each Major Security Type

The amortized cost basis amounts, gross unrealized holding gains, gross unrealized holding losses and fair values of

available-for-sale

debt securities and

held-to-maturity

debt securities in each major security type as of March 31, 2022 and December 31, 2022 are as follows:

March 31, 2022


	Millions of yen
	Amortized cost		Allowance for credit losses			Gross unrealized gains		Gross unrealized losses			Fair value
Available-for-sale debt securities:
Japanese and foreign government bond securities	¥	905,004	¥	0		¥	5,178	¥	(77,569	)	¥	832,613
Japanese prefectural and foreign municipal bond securities		333,449		(132	)		2,482		(10,195	)		325,604
Corporate debt securities		873,178		0			10,014		(33,632	)		849,560
CMBS and RMBS in the Americas		29,349		0			112		(729	)		28,732
Other asset-backed securities and debt securities		135,445		(21	)		5,456		(2,498	)		138,382

		2,276,425		(153	)		23,242		(124,623	)		2,174,891

Held-to-maturity debt securities:
Japanese government bond securities and other		114,312		0			21,129		0			135,441

	¥	2,390,737	¥	(153	)	¥	44,371	¥	(124,623	)	¥	2,310,332


December 31, 2022

	Millions of yen
	Amortized cost		Allowance for credit losses			Gross unrealized gains		Gross unrealized losses			Fair value
Available-for-sale debt securities:
Japanese and foreign government bond securities	¥	971,869	¥	0		¥	1,607	¥	(227,391	)	¥	746,085
Japanese prefectural and foreign municipal bond securities		381,625		(143	)		818		(28,290	)		354,010
Corporate debt securities		865,330		0			4,623		(97,798	)		772,155
CMBS and RMBS in the Americas		43,160		0			44		(2,262	)		40,942
Other asset-backed securities and debt securities		198,143		(16	)		5,733		(9,693	)		194,167

		2,460,127		(159	)		12,825		(365,434	)		2,107,359

Held-to-maturity debt securities:
Japanese government bond securities and other		114,757		0			12,000		(453	)		126,304

	¥	2,574,884	¥	(159	)	¥	24,825	¥	(365,887	)	¥	2,233,663

Summary of rollforward of allowance for credit losses

The following table presents a rollforward of the allowance for credit losses for the nine months ended December 3

, 2021 and 2022:


			Millions of yen
			Nine months ended December 31, 2021
			Foreign municipal bond securities			Total
Beginning			¥	120		¥	120
Increase (Decrease) from the effects of changes in foreign exchange rates				4			4

Ending			¥	124		¥	124

	Millions of yen
	Nine months ended December 31, 2022
	Foreign municipal bond securities		Japanese other asset- backed securities and debt securities			Total
Beginning	¥	132	¥	21		¥	153
Additional increases (decreases) to the allowance for credit losses on AFS debt securities that had an allowance recorded in a previous period, net		0		(5	)		(5	)
Increase (Decrease) from the effects of changes in foreign exchange rates		11		0			11

Ending	¥	143	¥	16		¥	159

The following table presents a rollforward of the allowance for credit losses for the three months ended December 3

, 2021 and 2022:


				Millions of yen
				Three months ended December 31, 2021
				Foreign municipal bond securities		Total
Beginning				¥	121	¥	121
Increase (Decrease) from the effects of changes in foreign exchange rates					3		3

Ending				¥	124	¥	124

	Millions of yen
	Three months ended December 31, 2022
	Foreign municipal bond securities			Japanese other asset- backed securities and debt securities		Total
Beginning	¥	156		¥	16	¥	172
Increase (Decrease) from the effects of changes in foreign exchange rates		(13	)		0		(13	)

Ending	¥	143		¥	16	¥	159

Information about Available-for-Sale Securities with Gross Unrealized Losses and Length of Time Individual Securities Have Been in Continuous Unrealized Loss Position

The following tables provide information about

available-for-sale

debt securities with gross unrealized losses (including allowance for credit losses) and the length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2022 and December 31, 2022, respectively:

March 31, 2022


	Millions of yen
	Less than 12 months					12 months or more					Total
	Fair value		Gross unrealized losses			Fair value		Gross unrealized losses			Fair value		Gross unrealized losses
Available-for-sale debt securities:
Japanese and foreign government bond securities	¥	217,457	¥	(16,117	)	¥	521,633	¥	(61,452	)	¥	739,090	¥	(77,569	)
Japanese prefectural and foreign municipal bond securities		190,081		(6,509	)		46,391		(3,818	)		236,472		(10,327	)
Corporate debt securities		373,506		(19,340	)		156,687		(14,292	)		530,193		(33,632	)
CMBS and RMBS in the Americas		6,458		(98	)		17,542		(631	)		24,000		(729	)
Other asset-backed securities and debt securities		66,543		(995	)		37,432		(1,524	)		103,975		(2,519	)

	¥	854,045	¥	(43,059	)	¥	779,685	¥	(81,717	)	¥	1,633,730	¥	(124,776	)


December 31, 2022

	Millions of yen
	Less than 12 months					12 months or more					Total
	Fair value		Gross unrealized losses			Fair value		Gross unrealized losses			Fair value		Gross unrealized losses
Available-for-sale debt securities:
Japanese and foreign government bond securities	¥	156,264	¥	(41,597	)	¥	547,801	¥	(185,794	)	¥	704,065	¥	(227,391	)
Japanese prefectural and foreign municipal bond securities		200,136		(13,159	)		117,775		(15,274	)		317,911		(28,433	)
Corporate debt securities		374,243		(35,676	)		243,218		(62,122	)		617,461		(97,798	)
CMBS and RMBS in the Americas		26,455		(1,749	)		9,400		(513	)		35,855		(2,262	)
Other asset-backed securities and debt securities		115,803		(5,804	)		40,257		(3,905	)		156,060		(9,709	)

	¥	872,901	¥	(97,985	)	¥	958,451	¥	(267,608	)	¥	1,831,352	¥	(365,593	)

The following table provides information about

available-for-sale

debt securities with gross unrealized losses for which allowance for credit losses were not recorded and the length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2022 and December 31, 2022, respectively:

March 31, 2022


	Millions of yen
	Less than 12 months					12 months or more					Total
	Fair value		Gross unrealized losses			Fair value		Gross unrealized losses			Fair value		Gross unrealized losses
Available-for-sale debt securities:
Japanese and foreign government bond securities	¥	217,457	¥	(16,117	)	¥	521,633	¥	(61,452	)	¥	739,090	¥	(77,569	)
Japanese prefectural and foreign municipal bond securities		190,081		(6,509	)		43,338		(3,686	)		233,419		(10,195	)
Corporate debt securities		373,506		(19,340	)		156,687		(14,292	)		530,193		(33,632	)
CMBS and RMBS in the Americas		6,458		(98	)		17,542		(631	)		24,000		(729	)
Other asset-backed securities and debt securities		66,489		(974	)		37,432		(1,524	)		103,921		(2,498	)

	¥	853,991	¥	(43,038	)	¥	776,632	¥	(81,585	)	¥	1,630,623	¥	(124,623	)


December 31, 2022

	Millions of yen
	Less than 12 months					12 months or more					Total
	Fair value		Gross unrealized losses			Fair value		Gross unrealized losses			Fair value		Gross unrealized losses
Available-for-sale debt securities:
Japanese and foreign government bond securities	¥	156,264	¥	(41,597	)	¥	547,801	¥	(185,794	)	¥	704,065	¥	(227,391	)
Japanese prefectural and foreign municipal bond securities		200,136		(13,159	)		114,322		(15,131	)		314,458		(28,290	)
Corporate debt securities		374,243		(35,676	)		243,218		(62,122	)		617,461		(97,798	)
CMBS and RMBS in the Americas		26,455		(1,749	)		9,400		(513	)		35,855		(2,262	)
Other asset-backed securities and debt securities		115,744		(5,788	)		40,257		(3,905	)		156,001		(9,693	)

	¥	872,842	¥	(97,969	)	¥	954,998	¥	(267,465	)	¥	1,827,840	¥	(365,434	)