Regulations Governing Enrollment in Postal Simple Life Insurance Policies Article 33

When the Variable Fee Approach is applied to a contract group, the contractual service margin shall be adjusted according to the regulations of IFRS 17 to reflect fees collected. The remaining coverage liabilities shall be calculated based on the nature of changes in the investment target, and a reserve shall be set aside for liabilities.The remaining coverage liabilities referred to in the preceding paragraph is the sum of the following two subparagraphs calculated in accordance with the regulations of IFRS 17 and based on the actuarial assumptions stipulated in Articles 28 and 29:1. The performance cash flows allocated to the contract group on the valuation date for future services.2. The contractual service margin of the contract group on the valuation date.