Effective 31 March 2026, Aioi Nissay Dowa Insurance Company, Limited adopted Japan’s Economic Value-Based Solvency Regime (ESR), replacing the previous Solvency Margin Ratio (SMR) framework. The ESR framework assesses assets and liabilities on an economic value basis and applies more comprehensive and risk-sensitive capital requirements, including a higher confidence level and broader risk coverage. As a result, solvency ratios reported under ESR are not directly comparable with historical SMR ratios and are generally lower than those reported under the previous framework. The ESR supervisory benchmark is 100%, compared with 200% under the former SMR framework, and the change in reported solvency ratios reflects the revised regulatory methodology rather than a reduction in the capital strength.