Filing Compare · MS&AD Insurance Group Holdings, Inc.

FORM 6-K

U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934

Commission File Number: 333-150010

For the Month of December, 2010

MS&AD Insurance Group Holdings, Inc.

(Translation of registrant’s name into English)

3-7, Yaesu 1-chome,
Chuo-ku, Tokyo 103-0028, Japan

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.


Form 20-F x		Form 40-F o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

Information furnished on this form:

Table of Contents


1.		[English Translation]

~~Summary~~Change ofin ~~Financial~~Corporate ~~Statements~~Name ~~for~~of ~~the~~Mitsui ~~Six~~Sumitomo ~~Months~~MetLife ~~Ended~~Insurance ~~September 30~~Co., ~~2010~~Ltd.

2. [English Translation]

Overview of Business Results of MS&AD Insurance Group Holdings, Inc., Six Months Ended September 30, 2010

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	MS&AD Insurance Group Holdings, Inc.
Date: December 7, 2010	By:	/s/ Yasuaki Tamai
Date: December 27, 2010	By:	/s/ Yasuaki Tamai
		Yasuaki Tamai
		General Manager General Administration Dept.

[English Translation]

~~SUMMARY OF FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED SEPTEMBER 30~~December 27, 2010

~~November 19~~MS&AD Insurance Group Holdings, ~~2010~~Inc.

Name of Listed Company:		MS&AD Insurance Group Holdings, Inc
Securities Code No.:		8725
Stock Exchanges:		Tokyo, Osaka, Nagoya
URL:		http://www.ms-ad-hd.com
Representative:		Toshiaki Egashira, President
Contact:		Keisuke Kawamoto, Manager, Consolidated Accounting Section, Accounting Department
		Telephone : (03)-6202-5273

Change in Corporate Name of Mitsui Sumitomo MetLife Insurance Co., Ltd.

Date of filing of Quarterly Financial Report:		November 26, 2010
Date of starting payment of dividends:		December 10, 2010

MS&AD Insurance Group Holdings, Inc. has decided to acquire all shares of Mitsui Sumitomo MetLife Insurance Co., Ltd. (“MSI Met”) subject to approvals from applicable governmental authorities, as announced on October 29, 2010, to convert MSI Met into a wholly owned subsidiary as of April 1, 2011. Along with the conversion, MSI Met is scheduled to change its corporate name, as follows:

~~(Note)~~<Corporate ~~Amounts~~name ~~are~~as ~~truncated.~~changed>

1. ~~Consolidated~~Corporate ~~Business Results for the Six Months Ended September 30, 2010 (April 1, 2010 to~~name ~~September 30, 2010)~~

~~(1) Results~~Mitsui ofSumitomo ~~consolidated~~Kaijo ~~operations~~Puraimari Seimei Hoken Kabushiki Kaisha

	(Yen in millions)
	Ordinary income				Ordinary profit				Net income
Six months ended September 30, 2010		1,721,149	69.5	%		70,515	(14.3	)%		40,060	(29.5	)%
Six months ended September 30, 2009		1,015,602	(2.2	)%		82,234	—	%		56,836	358.4	%

2. In English

~~Percent~~Mitsui ~~figures~~Sumitomo ~~represent~~Primary ~~changes~~Life inInsurance ~~comparison~~Company, ~~with the corresponding period of preceding~~Limited ~~fiscal year.~~

	(Yen)
			Net income per
	Net income per share		share -Diluted
Six months ended September 30, 2010		63.97		—
Six months ended September 30, 2009		135.55		—

-End-

(2) Consolidated financial conditions

	(Yen in millions)
					Net assets			Net assets
					less minority			less minority interests
	Total assets		Net assets		interests to Total assets			per share (Yen)
As of September 30, 2010		11,373,221		1,696,471		14.8	%		2,714.59
As of March 31, 2010		7,519,625		1,311,082		17.3	%		3,143.32

(Reference) Net assets less minority interests:		As of September 30, 2010:		¥1,688,290 million
		As of March 31, 2010:		¥1,304,332 million

2. Dividends

	Dividend per share (Yen)
(Record Date)	First Quarter-end		Second Quarter-end		Third Quarter-end		Year- end		Annual
Year ended March 31, 2010		—		27.00		—		27.00		54.00
Year ending March 31, 2011		—		27.00
Year ending March 31, 2011 (Forecast)						—		27.00		54.00

(Note) Changes in the dividend per share forecast for the fiscal year ending March 31, 2011, during the second quarter : None

3. Forecast for the Current Period (April 1, 2010 to March 31, 2011)-Consolidated

	(Yen in millions)
	Ordinary income				Ordinary profit				Net income				Net income per share (Yen)
Year ending March 31, 2011		3,360,000	71.2	%		71,000	34.7	%		40,000	6.3	%		64.09

Percent figures represent changes in comparison with the corresponding period of preceding fiscal year.

(Note) Changes in the forecast for the fiscal year ending March 31, 2011, during the second quarter : Yes

4. Other Information

(1) Significant changes in scope of consolidation during the second quarter : None

(2) Changes in accounting principle, procedure and presentation preparing the consolidated financial statements

1. Changes due to revision of accounting standard: Yes

2. Changes due to other than above: None

(3) The number of shares outstanding (Common stock)

1. The number of shares outstanding (including treasury stock)

As of September 30, 2010:		633,291,754 shares
As of March 31, 2010:		421,320,739 shares

2. The number of treasury stock

As of September 30, 2010:		11,361,868 shares
As of March 31, 2010:		6,367,110 shares

3. The average number of shares outstanding

For the six months ended September 30, 2010:		626,166,100 shares
For the six months ended September 30, 2009:		419,294,388 shares

(Reference) Summary of Non-Consolidated Financial Results

Non-consolidated Business Results for the Six Months Ended September 30, 2010 (April 1, 2010 to September 30, 2010)

(1) Results of operations

	(Yen in millions)
	Operating Income				Operating Profits				Ordinary Profits				Net Income
Six months ended September 30, 2010		30,307	111.6	%		28,761	120.4	%		28,765	120.1	%		28,332	116.7	%
Six months ended September 30, 2009		14,321	(24.2	)%		13,050	(26.1	)%		13,070	(22.6	)%		13,072	(22.6	)%

Percent figures represent changes in comparison with the corresponding period of preceding fiscal year.

	(Yen)
	Net income per share
Six months ended September 30, 2010		45.24
Six months ended September 30, 2009		31.17

(2) Financial conditions

	(Yen in millions)
								Net assets
	Total assets		Net assets		Net assets ratio			per share (Yen)
As of September 30, 2010		1,326,867		1,326,546		100.0	%		2,132.95
As of March 31, 2010		769,963		769,415		99.9	%		1,854.22

(Reference) Net assets:		As of September 30, 2010:		¥1,326,546 million
		As of March 31, 2010:		¥769,415 million

*Disclosure regarding the execution of the interim audit process

This report is outside the scope of the external auditor’s interim audit procedure which is required by “Financial Instruments and Exchange Act”. Therefore, the interim audit process has not been completed as of the disclosure of this report.

*Notification

(1)		The financial forecasts were based upon currently available information and contain many elements of uncertainty. Actual results may differ from the forecasts due to changes in the business environment.
(2)		The non-consolidated result forecasts have been omitted due to immateriality.
(3)		The Company is a specified business company under “Cabinet Office Ordinance on Disclosure of Corporate Information, etc” Article 17-15 clause 2 and prepares the consolidated and non-consolidated financial statements for not the second quarter but the first half of the fiscal year.

1. Qualitative Information on Current Quarterly (Interim) Financial Statements

(1) Qualitative Information on Consolidated Operating Results

During six months ended September 30, 2010, Japanese economy saw signs of economic upturn which could be seen in corporate profitability improvements along with recovery in equipment investment and individual consumption. However, overall conditions remained severe as recent environment grew serious and also unemployment rate hovering at a high rate.

Under the management conditions, business results of the Group for the six months ended September 30, 2010, were as follows:

As a result of underwriting income of 1,599.1 billion yen (including net premiums written of 1,301.6 billion yen), investment income of 112.3 billion yen, and other ordinary income of 9.6 billion yen, ordinary income reached 1,721.1 billion yen. Ordinary expenses were 1,650.6 billion yen, including underwriting expenses of 1,363.3 billion yen (including net claims paid of 783.8 billion yen), investment expenses of 34.7 billion yen, operating expenses and general and administrative expenses of 249.7 billion yen, and other ordinary expenses of 2.8 billion yen.

(2) Qualitative Information on Consolidated Financial Condition

Total assets as of September 30, 2010 increased by 3,853.5 billion yen versus the end of the previous consolidated accounting year to 11,373.2 billion yen due to reasons such as Aioi Insurance Co., Ltd. and Nissay Dowa General Insurance Co., Ltd. etc. became consolidated subsidiaries of the Company. Net assets increased by 385.3 billion yen versus the end of the previous year, to 1,696.4 billion yen, reflecting the increase of capital surplus after share exchanges with Aioi Insurance Co., Ltd. and Nissay Dowa General Insurance Co., Ltd.

(3) Qualitative Information on Consolidated Earnings Forecasts

The full-year consolidated earnings forecast calls for ordinary income of 3,360.0 billion yen, ordinary profits of 71.0 billion yen, and net income of 40.0 billion yen. Note that, in light of mid-term consolidated results and the outlook going forward, we have revised the forecast figures previously announced on May 20, 2010.

The key assumptions behind the earnings forecast are as follows:

• Forecast for net premiums written is based on proprietary forecasting, taking into consideration past trends and other factors.

• We expect net claims (the total of net claims paid and provision for outstanding claims) related to natural disasters of 4.0 billion yen and 3.0 billion yen (Note 2), respectively, to be generated by our subsidiaries, Mitsui Sumitomo Insurance Co., Ltd. and Aioi Nissay Dowa Insurance Co., Ltd. (Note 1).

• We expect extraordinary loss of up to approximately 36.0 billion yen due to business integrations cost which is mainly cost for merger of Aioi Insurance Co., Ltd. and Nissay Dowa General Insurance Co., Ltd.

• We are assuming that there will not be a significant fluctuation in interest rates, exchange rates, or stock markets after the end of September, 2010.

• While our earnings forecast is based on the above assumptions, actual earnings may differ significantly from this forecast given the possibility of a natural disaster the magnitude of which exceeds our assumptions and other factors.

(Note) 1. Aioi Insurance Co., Ltd. and Nissay Dowa General Insurance Co., Ltd. merged together as of October 1, 2010, and formed a new merged company, Aioi Nissay Dowa Insurance Co., Ltd.

2. The figure includes the results of the Nissay Dowa General Insurance Co., Ltd. for the six months ended September 30, 2010.

2. Other Information

(1) Summary of Significant Changes in Scope of Consolidation

Not applicable for the three months ended September 30, 2010.

(2) Summary of Changes in Accounting Principle, Procedure, and Presentation

(i) Application of “Accounting Standard for Asset Retirement Obligations”

“Accounting Standard for Asset Retirement Obligations” (ASBJ Statement No.18, March 31, 2008) and “Guidance on Accounting Standard for Asset Retirement Obligations” (ASBJ Guidance No.21, March 31, 2008) are applied from the current interim consolidated accounting period.

As a result of application of the rules, ordinary profit and income before income taxes decreased by 127 million yen and 2,470 million yen, respectively. Changes in asset retirement obligations due to application of the rules was 5,992 million yen.

(ii) Application of “Accounting Standard for Business Combinations” and related rules

“Accounting Standard for Business Combinations” (ASBJ Statement No.21, December 26, 2008), “Accounting Standard for Consolidated Financial Statements” (ASBJ Statements No.22, December 26, 2008), “Partial amendments to Accounting Standard for Research and Development Costs” (ASBJ Statement No.23, December 26, 2008), “Accounting Standard for Business Divestitures” (ASBJ Statement No.7, December 26, 2008), “Accounting Standard for Equity Method of Accounting for Investments” (ASBJ Statement No.16, December 26, 2008), and “Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures” (ASBJ Guidance No.10, December 26, 2008) are applied from the current interim consolidated accounting period.

3. Consolidated Financial Statements

(1) Consolidated Balance Sheets

				(Yen in millions)
	As of September 30, 2010			As of March 31, 2010
Items	Amount			Amount
(Assets)
Cash deposits and savings		595,437			313,389
Call loans		31,160			33,700
Securities bought under resale agreements		57,586			15,998
Receivables under security borrowing transactions		25,593			—
Monetary claims bought		117,750			108,158
Money trusts		9,760			10,592
Investments in securities		7,733,756			5,497,537
Loans		1,098,144			749,524
Tangible fixed assets		499,758			255,039
Intangible fixed assets		116,090			78,967
Other assets		821,364			459,454
Deferred tax assets		273,655			6,411
Customers’ liabilities for acceptances and guarantees		2,500			—
Bad debts reserve		(9,338	)		(9,149	)
Total assets		11,373,221			7,519,625
(Liabilities)
Underwriting funds:		9,072,261			5,781,233
Outstanding claims		1,191,763			753,784
Underwriting reserves		7,880,497			5,027,448
Debentures		94,973			94,969
Other liabilities		362,295			198,587
Reserve for pension and retirement benefits		107,596			82,424
Reserve for pension and retirement benefits for officers and operating officers		1,991			2,092
Accrued bonuses for employees		14,320			12,713
Reserve under the special law:		11,099			4,302
Reserve for price fluctuation		11,099			4,302
Deferred tax liabilities		9,710			32,221
Liabilities under acceptances and guarantees		2,500			—
Total liabilities		9,676,749			6,208,542
(Net assets)
Shareholders’ equity:
Common stock		100,000			100,000
Capital surplus		682,754			132,690
Retained earnings		558,129			541,520
Treasury stock		(24,749	)		(14,687	)
Total shareholders’ equity		1,316,133			759,522
Valuation and translation adjustments:
Unrealized gains on investments, net of tax		410,126			582,980
Deferred hedge gains (losses), net of tax		13,900			2,138
Foreign currency translation adjustments		(51,870	)		(40,309	)
Total valuation and translation adjustments		372,156			544,809
Minority interests		8,180			6,750
Total net assets		1,696,471			1,311,082
Total liabilities and net assets		11,373,221			7,519,625

(2) Consolidated Statements of Income

				(Yen in millions)
	Six months ended			Six months ended
	September 30, 2009			September 30, 2010
Items	Amount			Amount
Ordinary income and expenses:
Ordinary income:		1,015,602			1,721,149
Underwriting income:		931,693			1,599,116
Net premiums written		710,469			1,301,611
Deposit premiums from policyholders		71,059			114,356
Investment income on deposit premiums from policyholders		27,767			33,545
Life insurance premiums		62,936			113,888
Reversal of outstanding claims		49,488			—
Reversal of underwriting reserves		8,436			31,109
Investment income:		75,325			112,345
Interest and dividends received		73,291			107,341
Investment gains on money trusts		499			37
Gains on sale of securities		7,754			29,632
Gains on derivative transactions		18,290			6,016
Transfer of investment income on deposit premiums from policyholders		(27,767	)		(33,545	)
Other ordinary income		8,583			9,687
Ordinary expenses:		933,368			1,650,633
Underwriting expenses:		764,528			1,363,362
Net claims paid		457,584			783,877
Loss adjustment expenses		39,026			67,622
Commission and collection expenses		121,372			234,674
Maturity refunds to policyholders		126,105			232,696
Life insurance claims		18,706			28,758
Provision for outstanding claims		—			7,416
Investment expenses:		23,725			34,726
Investment losses on money trusts		43			255
Losses on trading securities		—			4
Losses on sale of securities		6,533			10,433
Losses on devaluation of securities		9,083			15,121
Operating expenses and general and administrative expenses		140,928			249,705
Other ordinary expenses:		4,186			2,839
Interest paid		1,192			864
Ordinary profit		82,234			70,515
Extraordinary income and losses:
Extraordinary income:		1,779			13,933
Gains on sale of fixed assets		421			390
Gain on negative goodwill		—			13,543
Reversal of reserve under the special law		1,357			—
Reversal of reserve for price fluctuation		1,357			—
Extraordinary losses:		1,014			35,036
Losses on sale of fixed assets		834			1,114
Impairment losses on fixed assets		179			3,398
Provision for reserve under the special law		—			2,450
Provision for price fluctuation reserve		—			2,450
Losses on reduction of real estate		—			29
Other extraordinary losses		—			28,044
Income before income taxes		82,999			49,412
Income taxes — current		29,100			12,777
Refund of income taxes for prior periods		(13,950	)		—
Income taxes — deferred		10,648			(3,744	)
Total income taxes		25,798			9,032
Income before minority interests		—			40,380
Minority interests		363			319
Net income		56,836			40,060

(3) Consolidated Statement of Changes in Net Assets

	Six months ended			Six months ended
	September 30, 2009			September 30, 2010
Shareholder’s equity
Common stock
Balance as of the end of previous FY		100,000			100,000
Balance as of the end of interim period		100,000			100,000
Capital surplus
Balance as of the end of previous FY		132,689			132,690
Interim change
Increase from share exchanges		—			550,064
Disposal of treasury stock		0			(0	)
Total interim change		0			550,064
Balance as of the end of interim period		132,690			682,754
Retained earnings
Balance as of the end of previous FY		527,578			541,520
Interim change
Dividend of retained earnings		(11,321	)		(21,581	)
Change of scope of consolidation		(1,055	)		(1,871	)
Interim net income		56,836			40,060
Total interim change		44,459			16,608
Balance as of the end of interim period		572,038			558,129
Treasury stock
Balance as of the end of previous FY		(4,644	)		(14,687	)
Interim change
Acquisition of treasury stock		(27	)		(10,074	)
Disposal of treasury stock		3			12
Total interim change		(24	)		(10,062	)
Balance as of the end of interim period		(4,668	)		(24,749	)
Total shareholder’s equity
Balance as of the end of previous FY		755,623			759,522
Interim change
Increase due to share exchanges		—			550,064
Dividend of retained earnings		(11,321	)		(21,581	)
Change of scope of consolidation		(1,055	)		(1,871	)
Interim net income		56,836			40,060
Acquisition of treasury stock		(27	)		(10,074	)
Disposal of treasury stock		4			11
Total interim change		44,435			556,610
Balance as of the end of interim period		800,059			1,316,133
Valuation and translation adjustments
Valuation differences of other marketable securities
Balance as of the end of previous FY		295,558			582,980
Interim change
Change (net) this interim period on items other than shareholders’ equity		180,714			(172,854	)
Total interim change		180,714			(172,854	)
Balance as of the end of interim period		476,272			410,126
Deferred hedge profits/losses
Balance as of the end of previous FY		9,671			2,138
Interim change
Change (net) this interim period on items other than shareholders’ equity		(5,066	)		11,762
Total interim change		(5,066	)		11,762
Balance as of the end of interim period		4,604			13,900
Foreign currency translation adjustments
Balance as of the end of previous FY		(49,625	)		(40,309	)
Interim change
Change (net) this interim period on items other than shareholders’ equity		16,995			(11,560	)
Total interim change		16,995			(11,560	)
Balance as of the end of interim period		(32,630	)		(51,870	)
Total valuation and translation adjustments
Balance as of the end of previous FY		255,603			544,809
Interim change
Change (net) this interim period on items other than shareholders’ equity		192,643			(172,652	)
Total interim change		192,643			(172,652	)
Balance as of the end of interim period		448,246			372,156
Minority interests
Balance as of the end of previous FY		11,794			6,750
Interim change
Change (net) this interim period on items other than shareholders’ equity		(4,332	)		1,430
Total interim change		(4,332	)		1,430
Balance as of the end of interim period		7,462			8,180
Total net assets
Balance as of the end of previous FY		1,023,021			1,311,082
Interim change
Increase from share exchanges		—			550,064
Dividend of retained earnings		(11,321	)		(21,581	)
Change of scope of consolidation		(1,055	)		(1,871	)
Interim net income		56,836			40,060
Acquisition of treasury stock		(27	)		(10,074	)
Disposal of treasury stock		4			11
Change (net) this interim period on items other than shareholders’ equity		188,311			(171,222	)
Total interim change		232,747			385,388
Balance as of the end of interim period		1,255,768			1,696,471

(4) Notes regarding Going Concern Assumptions

Not applicable.

4. Non-consolidated Financial Statements

(1) Non-consolidated Balance Sheets

				(Yen in millions)
				FY 2009
	As of September 30,			(As of March 31,
	2010			2010)
Assets
Current assets
Cash, deposits and savings		731			153
Accounts receivable		5,707			7,500
Deposits from affiliates		8,110			87
Other		91			334
Total current assets		14,640			8,075
Fixed assets
Tangible fixed assets		183			169
Investments and other assets
Stock of affiliates		1,312,039			761,714
Others		2			2
Total investments and other assets		1,312,042			761,717
Total fixed assets		1,312,226			761,887
Total assets		1,326,867			769,963
Liabilities
Current liabilities
Corporate tax accrued		5			7
Accrued bonuses for employees		125			157
Other		189			382
Total current liabilities		320			547
Total liabilities		320			547
Net assets
Shareholders’ equity
Common stock		100,000			100,000
Capital surplus
Additional paid-in capital		729,255			179,191
Other capital surplus		467,210			467,210
Total capital surplus		1,196,466			646,401
Retained earnings
Other retained earnings
Retained earnings carried forward		54,830			37,702
Total other retained earnings		54,830			37,702
Treasury stock		(24,749	)		(14,687	)
Total shareholders’ equity		1,326,546			769,415
Total net assets		1,326,546			769,415
Total liabilities and net assets		1,326,867			769,963

(2) Non-consolidated Statement of Income

				(Yen in millions)
	Six months ended			Six months ended
	September 30, 2009			September 30, 2010
Operating income
Dividends paid by affiliates		13,000			28,500
Commissions earned from affiliates		1,321			1,807
Total operating income		14,321			30,307
Operating expenses
Sales and general administrative expenses		1,270			1,545
Total operating expenses		1,270			1,545
Operating income		13,050			28,761
Non-operating income		84			9
Non-operating expenses		64			6
Ordinary profit		13,070			28,765
Extraordinary loss		—			430
Current net income before taxes		13,070			28,334
Corporate, residential, and business taxes		0			1
Reversal of income taxes for prior periods		(2	)		—
Total corporate, residential, and business taxes		(1	)		1
Interim net income		13,072			28,332

(3) Non-consolidated Statement of Changes in Net Assets

	(Yen in millions)
	Six months ended			Six months ended
	September 30, 2009			September 30, 2010
Shareholder’s equity
Common stock
Balance as of the end of previous FY		100,000			100,000
Balance as of the end of interim period		100,000			100,000
Capital surplus
Legal capital surplus
Balance as of the end of previous FY		179,191			179,191
Interim change
Increase from share exchanges		—			550,064
Total interim change		—			550,064
Balance as of the end of interim period		179,191			729,255
Other capital surplus
Balance as of the end of previous FY		467,210			467,210
Interim change
Disposal of treasury stock		0			(0	)
Total interim change		0			(0	)
Balance as of the end of interim period		467,210			467,210
Retained earnings
Other retained earnings
Retained earnings carried forward
Balance as of the end of previous FY		23,317			37,702
Interim change
Dividends of retained earnings		(11,321	)		(11,203	)
Interim net income		13,072			28,332
Total interim change		1,751			17,128
Balance as of the end of interim period		25,069			54,830
Treasury stock
Balance as of the end of previous FY		(4,644	)		(14,687	)
Interim change
Acquisition of treasury stock		(27	)		(10,074	)
Disposal of treasury stock		3			12
Total interim change		(24	)		(10,062	)
Balance as of the end of interim period		(4,668	)		(24,749	)
Total shareholder’s equity
Balance as of the end of previous FY		765,074			769,415
Interim change
Increase due to share exchanges		—			550,064
Dividends of retained earnings		(11,321	)		(11,203	)
Interim net income		13,072			28,332
Acquisition of treasury stock		(27	)		(10,074	)
Disposal of treasury stock		4			11
Total interim change		1,727			557,130
Balance as of the end of interim period		766,802			1,326,546

(4) Notes regarding Going Concern Assumptions

Not applicable.

5. Other Information

Figures for the six months ended September 30, 2009 in “(1) Summary of Consolidated Results of Operations” and “(2) Premiums and Claims Paid by Lines of Insurance” are simple summations of Mitsui Sumitomo Insurance Group Holdings, Inc. (Consolidated), Aioi Insurance Co., Ltd. (Consolidated), and Nissay Dowa General Insurance Co., Ltd. (Non-Consolidated).

(1) Summary of Consolidated Results of Operations

	(Yen in millions)
	(Reference)
	Six months ended			Six months ended						Change
Items	September 30, 2009			September 30, 2010			Change			Ratio(%)
Ordinary income and expenses:
Underwriting income:		1,587,710			1,599,116			11,406			0.7
Net premiums written		1,274,049			1,301,611			27,562			2.2
Deposit premiums from policyholders		101,904			114,356			12,452			12.2
Life insurance premiums		99,841			113,888			14,047			14.1
Underwriting expenses:		1,313,457			1,363,362			49,904			3.8
Net claims paid		795,059			783,877			(11,182	)		(1.4	)
Loss adjustment expenses		73,014			67,622			(5,391	)		(7.4	)
Commission and collection expenses		225,405			234,674			9,268			4.1
Maturity refunds to policyholders		186,211			232,696			46,485			25.0
Life insurance claims		26,530			28,758			2,227			8.4
Investment income:		122,845			112,345			(10,500	)		(8.5	)
Interest and dividends received		112,863			107,341			(5,522	)		(4.9	)
Gains on sale of securities		20,776			29,632			8,855			42.6
Gains on derivative transactions		25,428			6,016			(19,411	)		(76.3	)
Investment expenses:		37,315			34,726			(2,588	)		(6.9	)
Losses on sale of securities		11,182			10,433			(748	)		(6.7	)
Losses on devaluation of securities		15,813			15,121			(691	)		(4.4	)
Losses on derivative transactions		533			—			(533	)		(100.0	)
Operating expenses and general and administrative expenses		249,096			249,705			608			0.2
Other ordinary income and expenses		5,623			6,847			1,224			21.8
Net income and losses from equity method investments		6,534			4,786			(1,748	)		(26.8	)
Ordinary profit		116,309			70,515			(45,794	)		(39.4	)
Extraordinary income and losses:
Extraordinary income		3,253			13,933			10,680			328.3
Extraordinary losses		4,514			35,036			30,521			676.0
Extraordinary income and losses		(1,261	)		(21,102	)		(19,841	)		—
Income before income taxes		115,048			49,412			(65,636	)		(57.1	)
Income taxes — current		34,403			12,777			(21,626	)		(62.9	)
Refund of income taxes for prior periods		(13,950	)		—			13,950			—
Income taxes — deferred		16,634			(3,744	)		(20,379	)		(122.5	)
Total income taxes		37,087			9,032			(28,055	)		(75.6	)
Net income before minority interests		77,960			40,380			(37,580	)		(48.2	)
Minority interests		433			319			(113	)		(26.2	)
Net income		77,527			40,060			(37,467	)		(48.3	)
<Excluding the Good Result Return (GRR) premiums of the automobile insurance “ModoRich.”>
Net premiums written		1,275,123			1,300,527			25,403			2.0

(Note) Extraordinary losses include “Other extraordinary losses” listed below:

		Six months ended September 30, 2009 :		Business-integration-related expenses 2,813 million yen
		Six months ended September 30, 2010 :		Business-integration-related expenses 23,592 million yen
				Effect of adopting the accounting standard for asset retirement obligations 2,316 million yen
				Contributions related to the construction 2,136 million yen

Consolidated

(2) Premiums and Claims Paid by Lines of Insurance

Direct Premiums Written by Lines of Insurance (including Deposit premiums from policyholders)

	(Yen in millions)
	(Reference)
	Six months ended							Six months ended
	September 30, 2009							September 30, 2010
			Share		Change					Share		Change
Lines of Insurance	Amount		%		%			Amount		%		%
Fire and Allied		256,198		17.4		(0.9	)		249,470		16.7		(2.6	)
Marine		55,071		3.8		(20.6	)		55,285		3.7		0.4
Personal Accident		185,418		12.6		(12.4	)		201,282		13.5		8.6
Voluntary Automobile		624,056		42.4		(1.6	)		640,866		42.9		2.7
Compulsory Automobile Liability		141,686		9.6		(15.3	)		144,452		9.7		2.0
Other		209,594		14.2		(0.9	)		202,106		13.5		(3.6	)
Total		1,472,025		100.0		(5.2	)		1,493,464		100.0		1.5
Deposit premiums from policyholders		101,904		6.9		(21.4	)		114,356		7.7		12.2

Voluntary Automobile			625,130								(1.8	)			639,783								2.3
Total			1,473,100								(5.3	)			1,492,380								1.3

Net Premiums Written by Lines of Insurance

	(Yen in millions)
	(Reference)
	Six months ended							Six months ended
	September 30, 2009							September 30, 2010
			Share		Change					Share		Change
Lines of Insurance	Amount		%		%			Amount		%		%
Fire and Allied		179,635		14.1		(1.2	)		181,878		14.0		1.2
Marine		43,726		3.4		(25.3	)		46,740		3.6		6.9
Personal Accident		108,209		8.5		(2.5	)		110,483		8.5		2.1
Voluntary Automobile		624,004		49.0		(1.3	)		647,847		49.8		3.8
Compulsory Automobile Liability		136,883		10.7		(18.4	)		141,232		10.8		3.2
Other		181,588		14.3		(5.2	)		173,429		13.3		(4.5	)
Total		1,274,049		100.0		(5.1	)		1,301,611		100.0		2.2

Voluntary Automobile			625,079								(1.5	)			646,763								3.5
Total			1,275,123								(5.2	)			1,300,527								2.0

Net Claims Paid by Lines of Insurance

	(Yen in millions)
	(Reference)
	Six months ended							Six months ended
	September 30, 2009							September 30, 2010
			Share		Change					Share		Change
Lines of Insurance	Amount		%		%			Amount		%		%
Fire and Allied		67,322		8.5		(4.3	)		69,388		8.9		3.1
Marine		21,996		2.8		(7.0	)		20,753		2.7		(5.7	)
Personal Accident		54,600		6.9		0.9			56,786		7.2		4.0
Voluntary Automobile		385,784		48.5		1.1			413,957		52.8		7.3
Compulsory Automobile Liability		129,681		16.3		(3.6	)		131,154		16.7		1.1
Other		135,674		17.0		19.2			91,837		11.7		(32.3	)
Total		795,059		100.0		2.2			783,877		100.0		(1.4	)

(Note) Any figures are amounts after the off-set of intersegment transactions.

Consolidated

(3) Securities (Marketable securities available for sale)

		(Yen in millions)
		As of September 30, 2010							As of March 31, 2010
				Acquisition							Acquisition
Items		Fair value		cost		Difference			Fair value		cost		Difference
In case fair values exceed cost or amortized cost	Domestic Bonds		3,048,908		2,900,228		148,680			1,950,543		1,894,888		55,655
	Domestic Stocks		1,299,009		672,642		626,366			1,530,878		671,579		859,299
	Foreign Securities		654,585		618,017		36,568			458,945		417,955		40,989
	Others		84,140		78,749		5,391			78,351		71,809		6,542
	Sub Total		5,086,644		4,269,637		817,007			4,018,718		3,056,232		962,486
In case fair values do not exceed cost or amortized cost	Domestic Bonds		55,207		56,599		(1,392	)		282,827		286,440		(3,613	)
	Domestic Stocks		615,180		714,686		(99,505	)		90,696		103,283		(12,587	)
	Foreign Securities		833,743		889,073		(55,329	)		464,408		492,762		(28,353	)
	Others		155,096		165,589		(10,493	)		26,487		27,128		(640	)
	Sub Total		1,659,228		1,825,948		(166,720	)		864,419		909,614		(45,194	)
Total			6,745,873		6,095,586		650,286			4,883,138		3,965,846		917,291

As of September 30, 2010		As of March 31, 2010
1.	Others include certificate of deposit represented as cash deposits and savings, commercial papers and beneficiary claims on loan trusts represented as monetary claims bought in the consolidated balance sheets.	1.	Others include beneficiary claims on loan trusts represented as monetary claims bought in the consolidated balance sheets.
2.	Impairment losses of marketable securities available for sale amount to 14,685 million yen; 13,830 million yen for domestic stocks and 854 million yen for foreign securities. The Company and its domestic consolidated subsidiaries in principle recognize impairment losses on marketable securities if the fair value is declined by 30% or more of their cost or amortized cost.	2.	Impairment losses of marketable securities available for sale amount to 4,841 million yen; 2,287 million yen for domestic stocks and 2,553 million yen for foreign securities. The Company and its domestic consolidated subsidiaries in principle recognize impairment losses on marketable securities if the fair value is declined by 30% or more of their cost or amortized cost.

(Reference) Investment Conditions of Securitized Instruments

Managerial basis

There are no US subprime loan instruments in the Investments/loans amount.

	(Yen in 100 millions)
	As of September 30, 2010								As of March 31, 2010
	Amount of investments								Amount of investments
	and loans (Note 1)								and loans (Note 1)
	(Amount in		Valuation Difference			Losses on Devaluation /			(Amount in		Valuation Difference			Losses on Devaluation /
	Consolidated Balance		(Unrealized			Gains or losses on			Consolidated Balance		(Unrealized			Gains or losses on
Category	Sheet)		losses/gains)			Sales, etc. (Note 2)			Sheet)		losses/gains)			Sales, etc. (Note 2)
(1) RMBS	(Note 3) 1,323			65			1			1,311		18			—
Japan		1,296		64			1			1,282		18			—
Overseas		26		1			(0	)		28		0			—
(2) ABS-CDO		—		—			0			2		0			—
AAA		—		—			—			—		—			—
AA		—		—			—			—		—			—
A		—		—			—			—		—			—
BBB or below		—		—			0			2		0			—
(3) CDO		114		3			1			115		2			(2	)
CLO		113		3			1			115		1			(2	)
AAA		100		2			—			115		1			(2	)
AA		—		—			—			—		—			—
A		—		—			—			—		—			—
BBB or below		13		0			1			—		—			—
CBO		0		(0	)		—			0		(0	)		—
AAA		—		—			—			—		—			—
AA		—		—			—			—		—			—
A		—		—			—			—		—			—
BBB or below		0		(0	)		—			0		(0	)		—
Synthetic CDO		0		0			—			0		0			(0	)
AAA		—		—			—			—		—			—
AA		—		—			—			—		—			—
A		—		—			—			—		—			—
BBB or below		0		0			—			0		0			(0	)
(4) CMBS		135		(8	)		0			140		(7	)		—
Japan		132		(8	)		0			140		(7	)		—
Overseas		2		0			0			—		—			—
(5) Other ABS		71		(0	)		—			—		—			—
Japan		41		0			—			—		—			—
Overseas		29		(1	)		—			—		—			—
(6) ABCP		—		—			—			16		—			—
Portion composed by MS&AD Insurance Group		—		—			—			16		—			—
(7) SIV instruments		0		(0	)		—			—		—			—
Portion composed by MS&AD Insurance Group		—		—			—			—		—			—
(8) LBO Loan		110	(Note 4) —				2			121	(Note 4) —				(0	)
Japan		110		—			2			121		—			(0	)
Overseas		—		—			—			—		—			—
Total		1,756		59			5			1,709		13			(3	)

(Note 1)		The above investments appear in the consolidated balance sheet as monetary claims bought, investments in securities, and loans.
(Note 2)		Losses on Devaluation / Gains or losses on Sales, etc. are for the six months ended September 30, 2010.
(Note 3)		Breakdown of credit ratings: AAA (129.8 billion yen), AA (1.9 billion yen), BBB or below (0.5 billion yen)
(Note 4)		Loans are recognized at the book values, so for the LBO loans the valuation differences are not shown.
(Note 5)		The figures of Mitsui Sumitomo MetLife Insurance Co., Ltd., accounted for under the equity method, are not included in the above table.

[Glossary]

u Synthetic CDO: Synthetic Collateralized Debt Obligations

u ABCP: Asset-Backed Commercial Paper

u ABS: Asset-Backed Securities

u ABS-CDO: CDOs backed by asset-backed securities

u CBO: Collateralized Bond Obligation

u CDO: Collateralized Debt Obligation

u CLO: Collateralized Loan Obligation

u CMBS: Commercial Mortgage-Backed Securities

u LBO Loan: Leveraged Buyout Loan

u RMBS: Residential Mortgage-Backed Securities

u SIV: Structured Investment Vehicle

[English Translation]

Overview of Business Results of MS&AD Insurance Group Holdings, Inc.

1. Summary of Consolidated Business Results for the Six Months ended September 30, 2010 (Net Premiums Written, Ordinary Profit , Net Income or Loss)

													(Yen in 100 millions)
	Six months ended			Six months ended						Change Ratio			Year ended
	September 30, 2009			September 30, 2010			Change			(%)			March 31, 2010
Net premiums written Note 1		12,751			13,005			254			2.0			25,190
Mitsui Sumitomo Insurance		6,082			6,234			152			2.5			12,037
Aioi Insurance		3,978			4,073			94			2.4			7,940
Nissay Dowa General Insurance		1,549			1,509			(39	)		(2.6	)		3,126
Mitsui Direct General Insurance		157			162			4			3.0			324
Overseas non-life insurance subsidiaries		981			1,025			43			4.4			1,761
Ordinary profit		1,163			705			(457	)		(39.4	)		991
Mitsui Sumitomo Insurance		709			466			(242	)		(34.2	)		357
Aioi Insurance		276			241			(35	)		(12.8	)		373
Nissay Dowa General Insurance		63			65			1			3.0			100
Net income (loss)		775			400			(374	)		(48.3	)		573
Mitsui Sumitomo Insurance		490			273			(216	)		(44.1	)		254
Aioi Insurance		168			70			(98	)		(58.1	)		181
Nissay Dowa General Insurance		35			(13	)		(48	)		(138.2	)		30
Mitsui Direct General Insurance		(4	)		1			6			—			(6	)
Mitsui Sumitomo Kirameki Life Insurance		0			0			0			19.7			0
Aioi Life Insurance		11			7			(3	)		(32.1	)		13
Mitsui Sumitomo MetLife Insurance		64			45			(18	)		(29.0	)		44
Overseas non-life insurance subsidiaries		98			7			(90	)		(92.4	)		172
Other		9			1			(7	)		(78.1	)		6
Consolidation adjustment / Holding Company		(98	)		4			102			—			(123	)

(Note) 1.		Net premiums written exclude Good Result Return premiums of Mitsui Sumitomo Insurance’s proprietary auto insurance product “ModoRich” which contains a special clause related to premium adjustment and refund at maturity.
2.		Figures in 12 through 20 are prior to consolidation adjustments (the Company’s equity)

(1) Breakdown of Overseas Non-Life Insurance Subsidiaries

													(Yen in 100 millions)
	Six months ended			Six months ended						Change Ratio			Year ended
	September 30, 2009			September 30, 2010			Change			(%)			March 31 2010
Net premiums written		981			1,025			43			4.4			1,761
Asia		335			400			64			19.3			655
Europe		382			321			(60	)		(15.8	)		647
Americas		136			158			22			16.3			249
Reinsurance		127			144			16			13.1			208
Net income (loss)		98			7			(90	)		(92.4	)		172
Asia		48			42			(5	)		(12.1	)		90
Europe		(5	)		(82	)		(77	)		—			(18	)
Americas		12			11			(0	)		(2.3	)		19
Reinsurance		42			35			(7	)		(16.7	)		80

(2) Status of Domestic Life Insurance Subsidiaries

											(Yen in 100 millions)
	Six months ended September 30, 2009		Six months ended September 30, 2010		Change			Change Ratio (%)			Year endedMarch 31, 2010
Amount of new policies					From the year-earlier period			From the year-earlier period
Mitsui Sumitomo Kirameki Life Insurance		8,072		8,316		244			3.0			15,872
Aioi Life Insurance		5,290		4,931		(358	)		(6.8	)		10,594
Subtotal amount		13,362		13,248		(114	)		(0.9	)		26,466
Mitsui Sumitomo MetLife Insurance		2,407		1,294		(1,112	)		(46.2	)		4,081
Amount of policies in force					From the previous year			From the previous year
Mitsui Sumitomo Kirameki Life Insurance		92,321		97,463		3,016			3.2			94,447
Aioi Life Insurance		56,036		60,578		2,145			3.7			58,433
Subtotal amount		148,357		158,042		5,162			3.4			152,880
Mitsui Sumitomo MetLife Insurance		29,195		29,767		(1,607	)		(5.1	)		31,375
Annualized premiums for policies in force					From the previous year			From the previous year
Mitsui Sumitomo Kirameki Life Insurance		1,937		1,974		28			1.5			1,945
Aioi Life Insurance		720		749		14			1.9			735
Subtotal amount		2,658		2,723		42			1.6			2,681
Mitsui Sumitomo MetLife Insurance		5,299		4,606		(710	)		(13.4	)		5,317

(Note) Above figures show the total of individual insurance and individual annuities.

2. Mitsui Sumitomo Insurance Co., Ltd. (Non-consolidated)

Figures below are presented exclusive of the GRR premiums of the automobile insurance “ModoRich”, which contains a special clause for premium adjustment and refund at maturity.

(1) Profit and Loss Status

				(Yen in 100 millions)
				Six months ended			Six months ended
				September 30, 2009			September 30, 2010			Change			Change ratio
													%
	( +	)	Net Premiums Written		6,082			6,234			152			2.5
	( -	)	Net Claims Paid		3,744			3,816			72			1.9
	( -	)	Loss adjustment expense		361			365			4			1.3
	( -	)	Commissions and collection expenses		1,037			1,084			47			4.6
	( -	)	Operating expenses and general administrative expenses for underwriting		990			981			(8	)		(0.9	)
			Underwriting balance		(50	)		(13	)		36			—
	( -	)	Outstanding claims provision		(203	)		(59	)		144			—
	( -	)	Ordinary underwriting reserve		(188	)		(21	)		167			—
	( -	)	Catastrophe reserve provision		15			22			7			51.7
	( +	)	Other		41			26			(15	)		(36.8	)
			Underwriting profit		368			70			(298	)		(81.0	)
	( +	)	Interest and dividends received		639			612			(26	)		(4.1	)
	( -	)	Transfer of investment income on deposit premium		277			259			(18	)		(6.5	)
			Net interest and dividend income -		361			353			(8	)		(2.3	)
	( +	)	Net gains/losses on sale of securities		1			147			145			8,868.7
	( -	)	Losses on devaluation of securities		80			76			(4	)		(5.2	)
	( +	)	Gains/losses on derivative transactions		191			54			(137	)		(71.4	)
	( +	)	Other		(126	)		(81	)		45			—
			Total investment income and other ordinary income		347			398			50			14.5
			Ordinary profit		709			466			(242	)		(34.2	)
	( +	)	Extraordinary income/losses		9			(100	)		(109	)		(1,196.7	)
			Reserve for price fluctuation		14			(13	)		(28	)		(190.1	)
			Integration-related expenses		—			(14	)		(14	)		—
			Income before income taxes		718			365			(352	)		(49.1	)
	( -	)	Total income taxes/Income taxes		228			92			(136	)		(59.7	)
			Net income		490			273			(216	)		(44.1	)
			Net loss ratio		67.5	%		67.1	%		(0.4	)%
ratios			Net expense ratio		33.3	%		33.1	%		(0.2	)%
			Combined ratio		100.8	%		100.2	%		(0.6	)%
Incurred Loss					3,540			3,757			216			6.1

(Note) 1.		Net loss ratio= (Net claims paid + Loss adjustment expenses) /Net premiums written×100
2.		Net expense ratio=(Commissions and collection expenses + Operating and general and administrative expenses associated with underwriting)/Net premiums written×100
3.		Combined ratio=Net loss ratio + Net expense ratio

(Mitsui Sumitomo Insurance Co., Ltd.)

(2) Net Premiums Written

	(Yen in 100 millions)
	Net Premiums Written										Net Premiums Written (excluding deposit premiums)
	Six months ended					Six months ended					Six months ended					Six months ended
	September 30, 2009					September 30, 2010					September 30, 2009					September 30, 2010
	Amount		Change ratio			Amount		Change ratio			Amount		Change ratio			Amount		Change ratio
			%					%					%					%
Fire and Allied		876		0.3			895		2.1			1,087		1.5			1,078		(0.8	)
Marine		266		(24.8	)		278		4.5			344		(21.7	)		353		2.6
Personal Accident		674		(0.7	)		695		3.1			697		(0.7	)		725		4.1
Voluntary Automobile		2,663		(2.4	)		2,759		3.6			2,668		(2.2	)		2,758		3.3
Compulsory Automobile liability		674		(18.7	)		694		2.9			643		(15.3	)		664		3.4
Other		926		(3.4	)		911		(1.7	)		976		(0.3	)		965		(1.2	)
Total		6,082		(5.3	)		6,234		2.5			6,418		(3.9	)		6,546		2.0

(3) Net Claims Paid

	(Yen in 100 millions)
	Six months ended September 30, 2009							Six months ended September 30, 2010
	Amount		Change ratio			Net loss ratio		Amount		Change ratio			Net loss ratio		Change ratio
			%			%				%			%		%
Fire and Allied		324		(3.9	)		39.2		344		6.3			40.5		1.3
Marine		144		(4.3	)		57.4		131		(8.6	)		50.2		(7.2	)
Personal Accident		346		2.4			57.6		371		7.2			59.3		1.7
Voluntary Automobile		1,695		(0.9	)		71.4		1,819		7.3			73.7		2.3
Compulsory Automobile liability		670		(3.5	)		107.5		677		1.0			105.1		(2.4	)
Other		563		(11.4	)		64.1		471		(16.2	)		55.1		(9.0	)
Total		3,744		(3.2	)		67.5		3,816		1.9			67.1		(0.4	)

(Note) Net loss ratio=Net claims paid + Loss adjustment expenses

(Reference) Natural Disasters during the year

	(Yen in 100 millions)
	Six months ended September 30, 2009						Six months ended September 30, 2010
	Incurred loss		Net claims paid		Outstanding claims		Incurred loss		Net claims paid		outstanding claims
Fire and Allied		21		12		9		9		4		4
Voluntary Automobile		10		10		0		3		2		0
Other		3		1		1		1		0		1
Total		35		24		11		13		7		6

(Note) The above figures are related to the natural disaster occurred during this fiscal year.

Net claims paid including claims related natural disasters occurred in previous year are the below:(unit:100 million yen)

28 (Fire:14, Voluntary Auto:10, Other:3) on Six months ended September 30, 2009

37 (Fire:26, Voluntary Auto:3, Other:7) on Six months ended September 30, 2010

(4) Company Expenses

	(Yen in 100 millions)
	Six months ended
	September 30, 2009			Six months ended September 30, 2010
	Amount			Amount			Change			change ratio
										%
Personnel expenses		773			799			26			3.4
Non personnel		565			531			(34	)		(6.0	)
Taxes and contributions		68			68			0			0.4
Total		1,406			1,399			(7	)		(0.5	)
(Note) Total=Loss adjustment expenses+Operating expenses and general and administrative expenses
<Expenses for underwriting>
	(Yen in 100 millions)
	Six months ended
	September 30, 2009			Six months ended September 30, 2010
	Amount			Amount			Change			Change ratio
										%
Operating expenses and general administrative expenses		990			981			(8	)		(0.9	)
Commission and collection expenses		1,037			1,084			47			4.6
Total		2,027			2,066			38			1.9
Net company expense ratio		33.3	%		33.1	%		(0.2)	%

(Mitsui Sumitomo Insurance Co., Ltd.)

(5) Outstanding Claims

	(Yen in 100 millions)
	Six months ended September 30, 2009					Six months ended September 30, 2010
	Amount		Change			Amount		Change
Fire and Allied		459		(8	)		454		(11	)
Marine		277		(11	)		254		3
Personal Accident		532		15			541		4
Voluntary Automobile		2,557		(31	)		2,528		9
Compulsory Automobile liability		481		(10	)		476		(6	)
Other		1,084		(155	)		983		(58	)
Total		5,391		(203	)		5,238		(59	)

(Note) Outstanding claims provision for the six months ended September 30, 2010 does not accord with the change in the amount of outstanding claims because of contract transfer which UK branch made to a third party.

(6) Catastrophe Reserve

	(Yen in 100 millions)
	Six months ended September 30, 2009				Six months ended September 30, 2010
	Amount		Reserve ratio		Amount		Change			Reserve ratio
			%							%
Fire and Allied		2,087		121.5		2,248		79			128.2
Marine		612		114.9		633		10			113.6
Personal Accident		809		60.0		733		(12	)		52.7
Voluntary Automobile		85		1.6		88		(83	)		1.6
Other		1,238		66.8		1,304		28			71.6
Total		4,833		44.8		5,008		22			45.4

(Note)

Reserve ratio=balance of catastrophe reserve/(net premiums written (ex.Home earthquake Insurance and CALI)X2)X100

3. Aioi Insurance Co., Ltd. (Non-consolidated)

(1) Profit and Loss Status

		(Yen in 100 millions)
		Six months ended			Six months ended
		September 30, 2009			September 30, 2010			Change			Change ratio
											%
(+)	Net Premiums Written		3,978			4,073			94			2.4
(-)	Net Claims Paid		2,367			2,465			97			4.1
(-)	Loss adjustment expense		244			187			(57	)		(23.5	)
(-)	Commissions and collection expenses		704			734			30			4.3
(-)	Operating expenses and general administrative expenses for underwriting		707			701			(5	)		(0.8	)
	Underwriting balance		(45	)		(15	)		30			—
(-)	Outstanding claims provision		(69	)		(56	)		12			—
(-)	Ordinary underwriting reserve		(10	)		19			30			—
(-)	Catastrophe reserve provision		(57	)		(105	)		(48	)		—
(+)	Other		2			(12	)		(14	)		(696.6	)
	Underwriting profit		94			114			20			21.8
(+)	Interest and dividends received		248			230			(18	)		(7.3	)
(-)	Transfer of investment income on deposit premium		94			85			(8	)		(8.6	)
	Net interest and dividend income —		154			144			(9	)		(6.4	)
(+)	Net gains/losses on sale of securities		16			86			69			417.3
(-)	Losses on devaluation of securities		33			67			34			103.5
(+)	Gains/losses on derivative transactions		71			12			(59	)		(83.0	)
(+)	Other		(33	)		(42	)		(9	)		—
	Total investment income and other ordinary income		175			132			(43	)		(24.6	)
	Ordinary profit		276			241			(35	)		(12.8	)
(+)	Extraordinary income/losses		(17	)		(137	)		(120	)		—
	Reserve for price fluctuation		1			(6	)		(7	)		(506.9	)
	Integration-related expenses		(18	)		(118	)		(100	)		—
	Income before income taxes		259			103			(155	)		(60.1	)
(-)	Total income taxes/Income taxes		90			32			(57	)		(63.8	)
	Net income		168			70			(98	)		(58.1	)
	Net loss ratio		65.7	%		65.1	%		(0.6	)%
ratios	Net expense ratio		35.5	%		35.3	%		(0.2	)%
	Combined ratio		101.2	%		100.4	%		(0.8	)%
Incurred Loss			2,298			2,408			110			4.8

(Note)		1.Net loss ratio=(Net claims paid+Loss adjustment expenses) /Net premiums written×100
		2.Net expense ratio=(Commissions and collection expenses + Operating and general and administrative expenses associated with underwriting)/Net premiums written×100
		3.Combined ratio=Net loss ratio+Net expense ratio

(Aioi Insurance Co., Ltd.)

(2) Net Premiums Written

	(Yen in 100 millions)
	Net Premiums Written										Net Premiums Written (excluding deposit premiums)
	Six months ended					Six months ended					Six months ended					Six months ended
	September 30, 2009					September 30, 2010					September 30, 2009					September 30, 2010
	Amount		Change ratio			Amount		Change ratio			Amount		Change ratio			Amount		Change ratio
			%					%					%					%
Fire and Allied		480		(2.8	)		507		5.6			571		(2.2	)		567		(0.7	)
Marine		17		(42.0	)		18		8.2			18		(38.1	)		20		14.1
Personal Accident		231		(3.2	)		230		(0.2	)		248		(2.2	)		242		(2.7	)
Voluntary Automobile		2,327		(1.2	)		2,398		3.0			2,279		(1.4	)		2,295		0.7
Compulsory Automobile liability		547		(18.4	)		567		3.6			613		(16.8	)		626		2.1
Other		374		(4.0	)		350		(6.4	)		380		(4.7	)		357		(5.8	)
Total		3,978		(4.8	)		4,073		2.4			4,112		(4.7	)		4,110		(0.0	)

(3) Net Claims Paid

	(Yen in 100 millions)
	Six months ended September 30, 2009							Six months ended September 30, 2010
	Amount		Change ratio			Net loss ratio		Amount		Change ratio			Net loss ratio		Change ratio
			%			%				%			%		%
Fire and Allied		158		0.8			35.3		181		14.2			37.6		2.3
Marine		10		(16.7	)		63.4		9		(9.7	)		54.3		(9.1	)
Personal Accident		108		(1.4	)		51.4		106		(1.2	)		49.5		(1.9	)
Voluntary Automobile		1,378		2.7			65.9		1,459		5.9			65.7		(0.2	)
Compulsory Automobile liability		490		(3.5	)		98.8		496		1.4			94.5		(4.3	)
Other		221		(16.7	)		63.9		211		(4.8	)		64.3		0.4
Total		2,367		(1.2	)		65.7		2,465		4.1			65.1		(0.6	)

(Note)Net loss ratio=Net claims paid + Loss adjustment expenses

(Reference) Natural Disasters during the year

	(Yen in 100 millions)
	Six months ended September 30, 2009						Six months ended September 30, 2010
	Incurred loss		Net claims paid		Outstanding claims		Incurred loss		Net claims paid		outstanding claims
Fire and Allied		6		3		3		2		1		0
Voluntary Automobile		3		3		0		1		1		0
Other		0		0		0		1		0		1
Total		10		6		3		4		2		2

(Note)The above figures are related to the natural disaster occurring during this fiscal year.

Net claims paid including claims related natural disasters occurred in previous year are the below:(unit:100 million yen)

7 (Fire:3, Voluntary Auto:3, Other:0) on Six months ended September 30, 2009

7 (Fire:4, Voluntary Auto:1, Other:0) on Six months ended September 30, 2010

(4) Company Expenses

	(Yen in 100 millions)
	Six months ended
	September 30, 2009		Six months ended September 30, 2010
	Amount		Amount		Change			change ratio
								%
Personnel expenses		478		477		(1	)		(0.2	)
Non personnel		458		402		(55	)		(12.1	)
Taxes and contributions		55		45		(9	)		(17.4	)
Total		992		926		(66	)		(6.7	)

(Note)Total=Loss adjustment expenses+Operating expenses and general and administrative expenses

	(Yen in 100 millions)
	Six months ended September 30, 2009			Six months ended September 30, 2010
	Amount			Amount			Change			Change ratio
										%
Operating expenses and general administrative expenses		707			701			(5	)		(0.8	)
Commission and collection expenses		704			734			30			4.3
Total		1,411			1,436			24			1.7
Net company expense ratio		35.5	%		35.3	%		(0.2	)%

(Aioi Insurance Co., Ltd.)

(5) Outstanding Claims

	(Yen in 100 millions)
	Six months ended September 30, 2009					Six months ended September 30, 2010
	Amount		Change			Amount		Change
Fire and Allied		217		6			222		3
Marine		33		(2	)		19		(2	)
Personal Accident		168		(0	)		174		6
Voluntary Automobile		1,759		(21	)		1,766		(2	)
Compulsory Automobile liability		353		(7	)		353		(2	)
Other		431		(43	)		535		(58	)
Total		2,964		(69	)		3,071		(56	)

(Note) Outstanding claims provision for the six months ended September 30, 2010 does not accord with the change in the amount of outstanding claims because our Tianjin office became a local subsidiary.

(6) Catastrophe Reserve

	(Yen in 100 millions)
	Six months ended September 30, 2009				Six months ended September 30, 2010
	Amount		Reserve ratio		Amount		Change			Reserve ratio
			%							%
Fire and Allied		1,007		106.9		1,069		29			107.3
Marine		44		127.2		46		0			121.2
Personal Accident		350		75.6		363		6			78.7
Voluntary Automobile		665		14.3		327		(149	)		6.8
Other		278		37.3		297		6			42.4
Total		2,347		34.3		2,103		(105	)		30.1

(Note)

Reserve ratio=balance of catastrophe reserve/(net premiums written (ex.Home earthquake Insurance and CALI)X2)X100

4. Nissay Dowa General Insurance Co., Ltd. (Non-consolidated)

(1) Profit and Loss Status

				(Yen in 100 millions)
				Six months ended			Six months ended
				September 30, 2009			September 30, 2010			Change			Change ratio
													%
	(+	)	Net Premiums Written		1,549			1,509			(39	)		(2.6	)
	(-	)	Net Claims Paid		945			973			27			2.9
	(-	)	Loss adjustment expense		91			91			(0	)		(0.1	)
	(-	)	Commissions and collection expenses		267			262			(4	)		(1.6	)
	(-	)	Operating expenses and general administrative expenses for underwriting		247			265			18			7.6
			Underwriting balance		(1	)		(83	)		(81	)		—
	(-	)	Outstanding claims provision		3			55			52			1,699.5
	(-	)	Ordinary underwriting reserve		13			(51	)		(64	)		(488.5	)
	(-	)	Catastrophe reserve provision		1			(38	)		(39	)		(2,892.1	)
	(+	)	Other		10			14			4			39.9
			Underwriting profit		(8	)		(33	)		(25	)		—
	(+	)	Interest and dividends received		105			101			(4	)		(3.9	)
	(-	)	Transfer of investment income on deposit premium		40			36			(3	)		(9.3	)
			Net interest and dividend income -		64			64			(0	)		(0.6	)
	(+	)	Net gains/losses on sale of securities		67			108			41			61.3
	(-	)	Losses on devaluation of securities		34			31			(2	)		(7.9	)
	(+	)	Gains/losses on derivative transactions		(5	)		(8	)		(3	)		—
	(+	)	Other		(18	)		(23	)		(5	)		—
			Total investment income and other ordinary income		74			109			35			47.3
			Ordinary profit		63			65			1			3.0
	(+	)	Extraordinary income/losses		(12	)		(93	)		(81	)		—
			Reserve for price fluctuation		(3	)		(3	)		(0	)		—
			Integration-related expenses		(9	)		(87	)		(77	)		—
			Income before income taxes		50			(28	)		(79	)		(155.6	)
	(-	)	Total income taxes/Income taxes		15			(14	)		(30	)		(195.1	)
			Net income		35			(13	)		(48	)		(138.2	)
			Net loss ratio		66.9	%		70.5	%		3.6	%
ratios			Net expense ratio		33.2	%		35.0	%		1.8	%
			Combined ratio		100.1	%		105.5	%		5.4	%
Incurred Loss					948			1,028			79			8.4

(Note)		1.Net loss ratio= (Net claims paid+Loss adjustment expenses) /Net premiums written×100
		2.Net expense ratio=(Commissions and collection expenses + Operating and general and administrative expenses associated with underwriting)/Net premiums written×100
		3.Combined ratio=Net loss ratio + Net expense ratio

(Nissay Dowa General Insurance Co., Ltd.)

(2) Net Premiums Written

	(Yen in 100 millions)
	Net Premiums Written										Net Premiums Written (excluding deposit premiums)
	Six months ended					Six months ended					Six months ended					Six months ended
	September 30, 2009					September 30, 2010					September 30, 2009					September 30, 2010
	Amount		Change ratio			Amount		Change ratio			Amount		Change ratio			Amount		Change ratio
			%					%					%					%
Fire and Allied		233		11.9			187		(19.7	)		317		10.9			269		(15.1	)
Marine		20		(22.2	)		22		12.1			27		(22.3	)		30		9.2
Personal Accident		146		(3.0	)		143		(2.0	)		152		(2.3	)		149		(1.9	)
Voluntary Automobile		802		0.4			817		1.8			804		0.5			821		2.0
Compulsory Automobile liability		145		(17.0	)		149		2.3			160		(9.3	)		153		(4.1	)
Other		200		2.0			189		(5.5	)		337		22.6			351		4.2
Total		1,549		(0.5	)		1,509		(2.6	)		1,800		4.0			1,775		(1.4	)

(3) Net Claims Paid

	(Yen in 100 millions)
	Six months ended September 30, 2009							Six months ended September 30, 2010
	Amount		Change ratio			Net loss ratio		Amount		Change ratio			Net loss ratio		Change ratio
			%			%				%			%		%
Fire and Allied		84		8.4			37.7		83		(0.6	)		46.8		9.1
Marine		16		(1.1	)		83.0		16		4.2			77.0		(6.0	)
Personal Accident		81		7.0			60.8		78		(4.0	)		60.1		(0.7	)
Voluntary Automobile		517		2.0			72.2		557		7.7			75.5		3.3
Compulsory Automobile liability		134		(4.5	)		100.5		135		0.7			100.1		(0.4	)
Other		111		7.1			58.0		101		(9.0	)		56.2		(1.8	)
Total		945		2.5			66.9		973		2.9			70.5		3.6

(Note)Net loss ratio=Net claims paid + Loss adjustment expenses

(Reference) Natural Disasters during the year

	(Yen in 100 millions)
	Six months ended September 30, 2009						Six months ended September 30, 2010
	Incurred loss		Net claims paid		Outstanding claims		Incurred loss		Net claims paid		outstanding claims
Fire and Allied		9		5		3		0		0		0
Voluntary Automobile		3		3		0		—		—		—
Other		1		0		1		—		—		—
Total		15		9		5		0		0		0

(Note)The above figures are related to the natural disaster occurred during this fiscal year. Net claims paid including claims related natural disasters occurred in previous year are the below:(unit:100 million yen) 16 (Fire:11, Voluntary Auto:3, Other:1) on Six months ended September 30, 2009 15 (Fire:12, Voluntary Auto:0, Other:3) on Six months ended September 30, 2010

(4) Company Expenses

<Corporate expenses>		(Yen in 100 millions)
		Six months ended
		September 30, 2009			Six months ended September 30, 2010
		Amount			Amount			Change			change ratio
											%
Personnel expenses			167			183			15			9.4
Non personnel			170			173			2			1.7
Taxes and contributions			18			18			(0	)		(0.6	)
Total			356			375			18			5.2
(Note)Total=Loss adjustment expenses + Operating expenses and general and administrative expenses
<Expenses for underwriting>	(Yen in 100 millions)
		Six months ended
		September 30, 2009			Six months ended September 30, 2010
		Amount			Amount			Change			Change ratio
											%
Operating expenses and general administrative expenses			247			265			18			7.6
Commission and collection expenses			267			262			(4	)		(1.6	)
Total			514			528			14			2.8
Net company expense ratio			33.2	%		35.0	%		1.8	%

(Nissay Dowa General Insurance Co., Ltd.)

(5) Outstanding Claims

	(Yen in 100 millions)
	Six months ended September 30, 2009					Six months ended September 30, 2010
	Amount		Change			Amount		Change
Fire and Allied		105		(11	)		97		(5	)
Marine		26		(2	)		19		(4	)
Personal Accident		120		5			118		(1	)
Voluntary Automobile		670		9			775		73
Compulsory Automobile liability		96		(2	)		95		(0	)
Other		242		5			223		(6	)
Total		1,261		3			1,330		55

(6) Catastrophe Reserve

	(Yen in 100 millions)
	Six months ended September 30, 2009				Six months ended September 30, 2010
	Amount		Reserve ratio		Amount		Change			Reserve ratio
			%							%
Fire and Allied		560		122.7		578		7			158.7
Marine		79		196.2		79		(1	)		174.9
Personal Accident		155		53.1		145		(0	)		50.8
Voluntary Automobile		119		7.4		41		(51	)		2.5
Other		226		56.4		242		7			63.9
Total		1,141		40.8		1,087		(38	)		40.1

(Note)

Reserve ratio=balance of catastrophe reserve/(net premiums written (ex.Home earthquake Insurance and CALI)X2)X100

5. Result Forecast for the Fiscal Year ending March 31, 2011

(1) MS&AD Insurance Group Holdings, Inc. (Consolidated)

	(Yen in 100 millions)
	Forecast for the year		(Reference) Change from
	ending March 31, 2011		previous year
Net Premiums Written Note1		25,800		2.4	%
(Overseas Non-Life Insurance Subsidiaries)		1,835		4.2	%
Ordinary Profit		710		(281	)
Net Income		400		(173	)
Dividend per Share (Annual)		¥54.00		¥—
(2) Mitsui Sumitomo Insurance Co., Ltd. (Non-Consolidated)
	(Yen in 100 millions)
	Forecast for the year
	ending March 31, 2011		Change from previous year
Net Premiums Written Note1		12,310		2.3	%
Ordinary Profit		490		132
Net Income		330		75

(3) Aioi Nissay Dowa Insurance Co., Ltd. (Non-Consolidated) Note2

	(Yen in 100 millions)
	Forecast for the year
	ending March 31, 2011		Change from previous year
Net Premiums Written		11,310		2.2	%
Ordinary Profit		310		(164	)
Net Income		20		(192	)

(Note) 1.		Net premiums written exclude Good Result Return premiums of Mitsui Sumitomo Insurance’s proprietary auto insurance product “ModoRich” which contains a special clause related to premium adjustment and refund at maturity.
2.		Forecast for Aioi Nissay Dowa Insurance represents the simple combination of the non-consolidated forecast for the first half of the fiscal year of Nissay Dowa General Insurance and the non-consolidated full-year forecast of Aioi Nissay Dowa Insurance. Figures in change from previous year represent changes in comparison with the combined non-consolidated results of Aioi Insurance and Nissay Dowa General Insurance for the year ended March 31,2010.

6. Overviews of Major Consolidated Subsidiaries

(Mitsui Sumitomo Insurance Co., Ltd. (Non-Consolidated))

Summary of Non-Consolidated Results of Operations

	(Yen in millions)
	Six months ended			Six months ended						Change Ratio
	September 30, 2009			September 30, 2010			Change			(%)
Direct premiums written (including Deposit premiums from policyholders):		711,849			737,666			25,817			3.6
Direct premiums written		640,790			655,690			14,899			2.3
Underwriting income:		776,768			798,963			22,195			2.9
Net premiums written		607,189			624,564			17,374			2.9
Deposit premiums from policyholders		71,059			81,976			10,917			15.4
Underwriting expenses:		641,540			693,948			52,408			8.2
Net claims paid		374,417			381,675			7,257			1.9
Loss adjustment expenses		36,111			36,570			458			1.3
Commission and collection expenses		103,708			108,448			4,740			4.6
Maturity refunds to policyholders		126,105			165,332			39,226			31.1
Investment income:		63,077			61,627			(1,449	)		(2.3	)
Interest and dividends received		63,939			61,299			(2,639	)		(4.1	)
Gains on sale of securities		5,418			18,510			13,091			241.6
Gains on derivative transactions		19,197			5,497			(13,700	)		(71.4	)
Investment expenses:		20,746			17,109			(3,637	)		(17.5	)
Losses on sale of securities		5,253			3,748			(1,505	)		(28.6	)
Losses on devaluation of securities		8,073			7,655			(417	)		(5.2	)
Operating expenses and general and administrative expenses:		104,569			103,340			(1,228	)		(1.2	)
Operating expenses and general and administrative expenses for underwriting		99,044			98,170			(873	)		(0.9	)
Other ordinary income and expenses		(2,018	)		479			2,497			—
Ordinary profit:		70,971			46,672			(24,298	)		(34.2	)
Underwriting profit		36,814			7,012			(29,801	)		(81.0	)
Extraordinary income		1,850			927			(923	)		(49.9	)
Extraordinary losses		931			11,007			10,076			—
Extraordinary income and losses		919			(10,080	)		(10,999	)		—
Income before income taxes		71,890			36,591			(35,298	)		(49.1	)
Income taxes-current		27,233			7,256			(19,977	)		(73.4	)
Refund of income taxes for prior periods		(13,947	)		—			13,947			—
Income taxes-deferred		9,573			1,951			(7,621	)		(79.6	)
Total income taxes		22,859			9,207			(13,651	)		(59.7	)
Net income		49,031			27,384			(21,646	)		(44.1	)
Net loss ratio		67.6	%		67.0	%
Net expense ratio		33.4			33.1
<Excluding the Good Result Return (GRR) premiums of the automobile insurance “ModoRich.”>
Direct premiums written (including Deposit premiums from policyholders)		712,924			736,582			23,658			3.3	%
Direct premiums written		641,865			654,606			12,741			2.0
Net premiums written		608,264			623,480			15,216			2.5
Net loss ratio		67.5	%		67.1	%
Net expense ratio		33.3			33.1

(Note) 1.		Underwriting profit = Underwriting income − (Underwriting expenses + Operating and general and administrative expenses associated with underwriting) ± Other income and expenses
		Please note that other income and expenses consists of the corporate tax on compulsory auto liability insurance, etc.
2.		Net loss ratio = (Net claims paid + Loss adjustment expenses) / Net premiums written x 100
3.		Net expense ratio = (Commissions and collection expenses + Operating and general and administrative expenses associated with underwriting) / Net premiums written x 100

(Mitsui Sumitomo Insurance Co., Ltd. (Non-Consolidated))

Premiums Written and Claims Paid by Line

Direct Premiums Written by Lines of Insurance (excluding Deposit premiums from policyholders)

	(Yen in millions)
	Six months ended September 30, 2009							Six months ended September 30, 2010
			Share		Change					Share		Change
Lines of Insurance	Amount		%		%			Amount		%		%
Fire and Allied		108,783		17.0		1.5			107,868		16.5		(0.8	)
Marine		34,407		5.4		(21.7	)		35,311		5.4		2.6
Personal Accident		69,758		10.9		(0.7	)		72,597		11.1		4.1
Voluntary Automobile		265,812		41.5		(1.7	)		276,891		42.2		4.2
Compulsory Automobile Liability		64,329		10.0		(15.3	)		66,489		10.1		3.4
Other		97,697		15.2		(0.3	)		96,530		14.7		(1.2	)
Total		640,790		100.0		(3.8	)		655,690		100.0		2.3
Deposit premiums from policyholders		71,059				(24.7	)		81,976				15.4
<Excluding the GRR premiums of the automobile insurance “ModoRich.”>
Voluntary Automobile		266,887				(2.2	)		275,807				3.3
Total		641,865				(3.9	)		654,606				2.0

Net Premiums Written by Lines of Insurance

	(Yen in millions)
	Six months ended September 30, 2009							Six months ended September 30, 2010
			Share		Change					Share		Change
Lines of Insurance	Amount		%		%			Amount		%		%
Fire and Allied		87,683		14.4		0.3			89,542		14.3		2.1
Marine		26,674		4.4		(24.8	)		27,884		4.5		4.5
Personal Accident		67,483		11.1		(0.7	)		69,573		11.1		3.1
Voluntary Automobile		265,258		43.7		(1.9	)		277,038		44.4		4.4
Compulsory Automobile Liability		67,442		11.1		(18.7	)		69,422		11.1		2.9
Other		92,647		15.3		(3.4	)		91,103		14.6		(1.7	)
Total		607,189		100.0		(5.1	)		624,564		100.0		2.9
<Excluding the GRR premiums of the automobile insurance “ModoRich.”>
Voluntary Automobile		266,333				(2.4	)		275,954				3.6
Total		608,264				(5.3	)		623,480				2.5

Net Claims Paid by Lines of Insurance

	(Yen in millions)
	Six months ended September 30, 2009							Six months ended September 30, 2010
			Change			Net loss				Change			Net loss
Lines of Insurance	Amount		%			ratio %		Amount		%			ratio %
Fire and Allied		32,419		(3.9	)		39.2		34,466		6.3			40.5
Marine		14,416		(4.3	)		57.4		13,177		(8.6	)		50.2
Personal Accident		34,649		2.4			57.6		37,131		7.2			59.3
Voluntary Automobile		169,539		(0.9	)		71.6		181,973		7.3			73.4
Compulsory Automobile Liability		67,070		(3.5	)		107.5		67,752		1.0			105.1
Other		56,321		(11.4	)		64.1		47,174		(16.2	)		55.1
Total		374,417		(3.2	)		67.6		381,675		1.9			67.0
<Excluding the GRR premiums of the automobile insurance “ModoRich.”>
Voluntary Automobile		169,539		(0.9	)		71.4		181,973		7.3			73.7
Total		374,417		(3.2	)		67.5		381,675		1.9			67.1

(Note) Net loss ratio is calculated using the sum of net claims paid and loss adjustment expenses.

(Mitsui Sumitomo Insurance Co., Ltd. (Non-Consolidated))

Solvency Margin Ratio

Domestic insurance companies calculate solvency margin ratio based on Ministry of Finance Notification No. 50, dated 1996 and on Articles 86 and 87 of the Ordinance for Enforcement of the Insurance Business Law.

Insurance companies provide for reserves to cover payment of insurance claims for covered risks. However, it is essential to maintain sufficient capacity to enable payment even when risks exceeding those normally foreseen occur, such as the occurrence of a major disaster or a large decline in the price of assets held by the insurance company.

It is the solvency margin ratio ((C) in the table below) that serves as an indicator of the capacity to pay the “Total amount of risk” ((B) in the table below), which expresses risks exceeding those normally foreseen, with capital, reserves, and other funds held by the insurance company (namely, the total amount for the solvency margin ((A) in the table below). This ratio is calculated based on the Insurance Business Law and other related laws.

The solvency margin ratio is one objective measure used by administrative authorities in monitoring insurance companies.

The company is deemed to have sufficient capacity to pay insurance claims and other expenses if the ratio is 200% or higher.

	(Yen in millions)
	As of September 30, 2010			As of March 31, 2010
(A) Total amount of solvency margin		2,054,575			2,241,511
Total net assets		634,490			621,596
Reserve for price fluctuation		4,019			2,689
Contingency reserve		—			233
Catastrophe reserve		588,090			583,635
General bad debts reserve		1,146			1,338
Net unrealized gains/losses on securities (Prior to tax effect deductions)		608,167			799,409
Net unrealized gains/losses on land		50,957			72,972
Excess of policyholders’ contract deposits		—			—
Subordinated debts, etc.		—			—
Deductions		35,118			35,583
Others		202,824			195,220
(B) Total amount of risks		507,594			534,040
General insurance risk (R1)		73,512			73,498
Third sector insurance risk (R2)		—			23
Assumed interest risk (R3)		6,402			6,426
Asset management risk (R4)		261,720			289,698
Business administration risk (R5)		11,200			11,736
Catastrophe risk (R6)		218,375			217,188
(C) Solvency margin ratio [(A)/{(B)×1/2}]×100		809.5	%		839.4	%

(Aioi Insurance Co., Ltd. (Non-Consolidated))

Summary of Non-Consolidated Results of Operations

	(Yen in millions)
	Six months ended			Six months ended						Change Ratio
	September 30, 2009			September 30, 2010			Change			(%)
Direct premiums written (including Deposit premiums from policyholders):		435,228			436,640			1,411			0.3
Direct premiums written		411,233			411,032			(200	)		(0.0	)
Underwriting income:		459,166			476,159			16,993			3.7
Net premiums written		397,899			407,364			9,464			2.4
Deposit premiums from policyholders		23,995			25,607			1,612			6.7
Reversal of outstanding claims		6,959			5,672			(1,286	)		(18.5	)
Reversal of underwriting reserves		20,720			25,859			5,138			24.8
Underwriting expenses:		378,298			395,107			16,809			4.4
Net claims paid		236,784			246,542			9,758			4.1
Loss adjustment expenses		24,457			18,716			(5,740	)		(23.5	)
Commission and collection expenses		70,415			73,437			3,021			4.3
Maturity refunds to policyholders		43,926			51,219			7,293			16.6
Investment income:		26,851			24,457			(2,393	)		(8.9	)
Interest and dividends received		24,814			23,009			(1,804	)		(7.3	)
Gains on sale of securities		3,049			8,654			5,605			183.8
Gains on derivative transactions		7,137			1,211			(5,925	)		(83.0	)
Investment expenses:		6,258			8,682			2,424			38.7
Losses on sale of securities		1,381			24			(1,356	)		(98.2	)
Losses on devaluation of securities		3,319			6,753			3,434			103.5
Operating expenses and general and administrative expenses:		74,800			73,919			(880	)		(1.2	)
Operating expenses and general and administrative expenses for underwriting		70,778			70,181			(596	)		(0.8	)
Other ordinary income and expenses		987			1,198			210			21.4
Ordinary profit:		27,647			24,105			(3,541	)		(12.8	)
Underwriting profit		9,411			11,466			2,054			21.8
Extraordinary income		395			36			(358	)		(90.6	)
Extraordinary losses		2,142			13,814			11,672			544.9
Extraordinary income and losses		(1,746	)		(13,777	)		(12,030	)		—
Income before income taxes		25,900			10,327			(15,572	)		(60.1	)
Income taxes-current		3,175			2,046			(1,128	)		(35.6	)
Income taxes-deferred		5,867			1,224			(4,642	)		(79.1	)
Total income taxes		9,042			3,270			(5,771	)		(63.8	)
Net income		16,858			7,056			(9,801	)		(58.1	)
Net loss ratio		65.7	%		65.1	%
Net expense ratio		35.5			35.3

(Note) 1.		Underwriting profit = Underwriting income − (Underwriting expenses + Operating and general and administrative expenses associated with underwriting) ± Other income and expenses
		Please note that other income and expenses consists of the corporate tax on compulsory auto liability insurance, etc.
2.		Net Loss ratio = (Net claims paid + Loss adjustment expenses) / Net premiums written x 100
3.		Net expense ratio = (Commissions and collection expenses + Operating and general and administrative expenses associated with underwriting) / Net premiums written x 100

(Aioi Insurance Co., Ltd. (Non-Consolidated))

Premiums Written and Claims Paid by Line

Direct Premiums Written by Lines of Insurance (excluding Deposit premiums from policyholders)

			(Yen in millions)
	Six months ended September 30, 2009								Six months ended September 30, 2010
				Share		Change					Share		Change
Lines of Insurance	Amount			%		%			Amount		%		%
Fire and Allied		57,170			13.9		(2.2	)		56,779		13.8		(0.7	)
Marine		1,820			0.5		(38.1	)		2,076		0.5		14.1
Personal Accident		24,897			6.1		(2.2	)		24,237		5.9		(2.7	)
Voluntary Automobile		227,982			55.4		(1.4	)		229,533		55.9		0.7
Compulsory Automobile Liability		61,356			14.9		(16.8	)		62,621		15.2		2.1
Other		38,007			9.2		(4.7	)		35,784		8.7		(5.8	)
Total		411,233			100.0		(4.7	)		411,032		100.0		(0.0	)
Deposit premiums from policyholders		23,995					(11.3	)		25,607				6.7

Net Premiums Written by Lines of Insurance

			(Yen in millions)
	Six months ended September 30, 2009								Six months ended September 30, 2010
				Share		Change					Share		Change
Lines of Insurance	Amount			%		%			Amount		%		%
Fire and Allied		48,080			12.1		(2.8	)		50,795		12.5		5.6
Marine		1,755			0.4		(42.0	)		1,899		0.4		8.2
Personal Accident		23,144			5.8		(3.2	)		23,096		5.7		(0.2	)
Voluntary Automobile		232,778			58.5		(1.2	)		239,831		58.9		3.0
Compulsory Automobile Liability		54,724			13.8		(18.4	)		56,717		13.9		3.6
Other		37,414			9.4		(4.0	)		35,023		8.6		(6.4	)
Total		397,899			100.0		(4.8	)		407,364		100.0		2.4

Net Claims Paid by Lines of Insurance

			(Yen in millions)
	Six months ended September 30, 2009								Six months ended September 30, 2010
				Change			Net loss				Change			Net loss
Lines of Insurance	Amount			%			ratio %		Amount		%			ratio %
Fire and Allied		15,877			0.8			35.3		18,131		14.2			37.6
Marine		1,064			(16.7	)		63.4		961		(9.7	)		54.3
Personal Accident		10,816			(1.4	)		51.4		10,691		(1.2	)		49.5
Voluntary Automobile		137,817			2.7			65.9		145,953		5.9			65.7
Compulsory Automobile Liability		49,032			(3.5	)		98.8		49,698		1.4			94.5
Other		22,175			(16.7	)		63.9		21,106		(4.8	)		64.3
Total		236,784			(1.2	)		65.7		246,542		4.1			65.1

(Note) Net loss ratio is calculated using the sum of net claims paid and loss adjustment expenses.

(Aioi Insurance Co., Ltd. (Non-Consolidated))

Solvency Margin Ratio

	(Yen in millions)
	As of September 30, 2010			As of March 31, 2010
(A) Total amount of solvency margin		643,343			723,308
Total net assets		329,526			330,119
Reserve for price fluctuation		3,163			2,541
Contingency reserve		517			517
Catastrophe reserve		255,753			265,157
General bad debts reserve		417			397
Net unrealized gains/losses on securities (Prior to tax effect deductions)		(2,427	)		50,434
Net unrealized gains/losses on land		518			10,178
Excess of policyholders’ contract deposits		—			—
Subordinated debts, etc.		—			—
Deductions		29,390			27,004
Others		85,266			90,966
(B) Total amount of risks		178,453			191,355
General insurance risk (R1)		46,634			46,635
Third sector insurance risk (R2)		—			—
Assumed interest risk (R3)		2,243			2,307
Asset management risk (R4)		78,365			86,127
Business administration risk (R5)		4,168			4,440
Catastrophe risk (R6)		81,158			86,937
(C) Solvency margin ratio [(A)/{(B)×1/2}]×100		721.0	%		755.9	%

(Nissay Dowa General Insurance Co., Ltd. (Non-Consolidated))

Summary of Non-Consolidated Results of Operations

	(Yen in millions)
	Six months ended			Six months ended						Change Ratio
	September 30, 2009			September 30, 2010			Change			(%)
Direct premiums written (including Deposit premiums from policyholders):		186,854			184,325			(2,528	)		(1.4	)
Direct premiums written		180,004			177,553			(2,451	)		(1.4	)
Underwriting income:		170,638			176,890			6,252			3.7
Net premiums written		154,945			150,963			(3,982	)		(2.6	)
Deposit premiums from policyholders		6,849			6,772			(77	)		(1.1	)
Underwriting expenses:		146,973			154,670			7,697			5.2
Net claims paid		94,546			97,311			2,764			2.9
Loss adjustment expenses		9,110			9,102			(8	)		(0.1	)
Commission and collection expenses		26,701			26,287			(413	)		(1.6	)
Maturity refunds to policyholders		16,179			16,145			(34	)		(0.2	)
Investment income:		16,253			21,087			4,833			29.7
Interest and dividends received		10,517			10,107			(410	)		(3.9	)
Gains on sale of securities		9,494			14,625			5,131			54.1
Investment expenses:		6,854			8,177			1,322			19.3
Losses on sale of securities		2,790			3,812			1,021			36.6
Losses on devaluation of securities		3,409			3,141			(268	)		(7.9	)
Losses on derivative transactions		533			843			310			58.2
Operating expenses and general and administrative expenses:		26,532			28,398			1,866			7.0
Operating expenses and general and administrative expenses for underwriting		24,705			26,575			1,870			7.6
Other ordinary income and expenses		(153	)		(163	)		(9	)		—
Ordinary profit:		6,378			6,568			189			3.0
Underwriting losses		(814	)		(3,336	)		(2,522	)		—
Extraordinary income		71			25			(46	)		(64.8	)
Extraordinary losses		1,358			9,422			8,064			593.8
Extraordinary income and losses		(1,287	)		(9,397	)		(8,110	)		—
Income (loss) before income taxes		5,091			(2,829	)		(7,921	)		(155.6	)
Income taxes — current		1,492			82			(1,410	)		(94.5	)
Income taxes — deferred		60			(1,559	)		(1,620	)		—
Total income taxes		1,552			(1,477	)		(3,030	)		(195.1	)
Net income (loss)		3,538			(1,352	)		(4,890	)		(138.2	)
Net loss ratio		66.9	%		70.5	%
Net expense ratio		33.2			35.0

(Note) 1.		Underwriting profit = Underwriting income − (Underwriting expenses + Operating and general and administrative expenses associated with underwriting) ± Other income and expenses
		Please note that other income and expenses consists of the corporate tax on compulsory auto liability insurance, etc.
2.		Net Loss ratio = (Net claims paid + Loss adjustment expenses) / Net premiums written x 100
3.		Net expense ratio = (Commissions and collection expenses + Operating and general and administrative expenses associated with underwriting) / Net premiums written x 100

(Nissay Dowa General Insurance Co., Ltd. (Non-Consolidated))

Premiums Written and Claims Paid by Line

Direct Premiums Written by Lines of Insurance (excluding Deposit premiums from policyholders)

	(Yen in millions)
	Six months ended September 30, 2009							Six months ended September 30, 2010
			Share		Change					Share		Change
Lines of Insurance	Amount		%		%			Amount		%		%
Fire and Allied		31,734		17.6		10.9			26,935		15.2		(15.1	)
Marine		2,782		1.5		(22.3	)		3,038		1.7		9.2
Personal Accident		15,226		8.5		(2.3	)		14,936		8.4		(1.9	)
Voluntary Automobile		80,486		44.7		0.5			82,123		46.3		2.0
Compulsory Automobile Liability		16,001		8.9		(9.3	)		15,341		8.6		(4.1	)
Other		33,772		18.8		22.6			35,177		19.8		4.2
Total		180,004		100.0		4.0			177,553		100.0		(1.4	)
Deposit premiums from policyholders		6,849				(15.6	)		6,772				(1.1	)

Net Premiums Written by Lines of Insurance

	(Yen in millions)
	Six months ended September 30, 2009							Six months ended September 30, 2010
			Share		Change					Share		Change
Lines of Insurance	Amount		%		%			Amount		%		%
Fire and Allied		23,320		15.1		11.9			18,729		12.4		(19.7	)
Marine		2,028		1.3		(22.2	)		2,274		1.5		12.1
Personal Accident		14,651		9.5		(3.0	)		14,363		9.5		(2.0	)
Voluntary Automobile		80,293		51.8		0.4			81,706		54.1		1.8
Compulsory Automobile Liability		14,586		9.4		(17.0	)		14,925		9.9		2.3
Other		20,065		12.9		2.0			18,963		12.6		(5.5	)
Total		154,945		100.0		(0.5	)		150,963		100.0		(2.6	)

Net Claims Paid by Lines of Insurance

	(Yen in millions)
	Six months ended September 30, 2009							Six months ended September 30, 2010
			Change			Net loss				Change			Net loss
Lines of Insurance	Amount		%			ratio %		Amount		%			ratio %
Fire and Allied		8,425		8.4			37.7		8,377		(0.6	)		46.8
Marine		1,617		(1.1	)		83.0		1,684		4.2			77.0
Personal Accident		8,141		7.0			60.8		7,812		(4.0	)		60.1
Voluntary Automobile		51,727		2.0			72.2		55,714		7.7			75.5
Compulsory Automobile Liability		13,471		(4.5	)		100.5		13,564		0.7			100.1
Other		11,164		7.1			58.0		10,158		(9.0	)		56.2
Total		94,546		2.5			66.9		97,311		2.9			70.5

(Note) Net loss ratio is calculated using the sum of net claims paid and loss adjustment expenses.

(Nissay Dowa General Insurance Co., Ltd. (Non-Consolidated))

Solvency Margin Ratio

	(Yen in millions)
	As of September 30, 2010			As of March 31, 2010
(A) Total amount of solvency margin		356,940			413,014
Total net assets		148,114			153,456
Reserve for price fluctuation		1,571			1,246
Contingency reserve		176			185
Catastrophe reserve		131,903			135,158
General bad debts reserve		59			84
Net unrealized gains/losses on securities (Prior to tax effect deductions)		31,909			67,559
Net unrealized gains/losses on land		11,947			18,243
Excess of policyholders’ contract deposits		—			—
Subordinated debts, etc.		—			—
Deductions		—			—
Others		31,257			37,080
(B) Total amount of risks		89,602			91,622
General insurance risk (R1)		19,976			19,973
Third sector insurance risk (R2)		—			0
Assumed interest risk (R3)		1,022			1,038
Asset management risk (R4)		33,358			36,722
Business administration risk (R5)		2,043			2,090
Catastrophe risk (R6)		47,796			46,813
(C) Solvency margin ratio [(A)/{(B)×1/2}]×100		796.7	%		901.5	%

(Mitsui Direct General Insurance Co., Ltd. (Non-Consolidated))

Summary of Non-Consolidated Results of Operations

	(Yen in millions)
	Six months ended			Six months ended						Change Ratio
	September 30, 2009			September 30, 2010			Change			(%)
Direct premiums written (including Deposit premiums from policyholders):		15,672			16,110			438			2.8
Direct premiums written		15,672			16,110			438			2.8
Underwriting income:		15,852			17,008			1,155			7.3
Net premiums written		15,751			16,224			473			3.0
Underwriting expenses:		12,614			13,308			693			5.5
Net claims paid		9,694			11,470			1,776			18.3
Loss adjustment expenses		1,044			1,086			41			4.0
Commission and collection expenses		135			124			(11	)		(8.6	)
Investment income:		97			109			12			12.5
Interest and dividends received		102			115			12			12.1
Gains on sale of securities		0			0			(0	)		(64.5	)
Investment expenses:		—			—			—			—
Operating expenses and general and administrative expenses:		3,967			3,564			(403	)		(10.2	)
Operating expenses and general and administrative expenses for underwriting		3,963			3,563			(400	)		(10.1	)
Other ordinary income and expenses		1			0			(0	)		(43.9	)
Ordinary profit:		(630	)		245			876			—
Underwriting profit (loss)		(725	)		136			862			—
Extraordinary income		0			0			0			41.2
Extraordinary losses		7			4			(3	)		(40.5	)
Extraordinary income and losses		(7	)		(3	)		3			—
Income (loss) before income taxes		(637	)		241			879			—
Income taxes — current		6			6			(0	)		(0.3	)
Total income taxes		6			6			(0	)		(0.3	)
Net income (loss)		(644	)		235			879			—
Net loss ratio		68.2	%		77.4	%
Net expense ratio		26.0			22.7

(Note) 1.		Underwriting profit = Underwriting income − (Underwriting expenses + Operating and general and administrative expenses associated with underwriting) ± Other income and expenses
		Please note that other income and expenses consists of the corporate tax on compulsory auto liability insurance, etc.
2.		Net Loss ratio = (Net claims paid + Loss adjustment expenses) / Net premiums written x 100
3.		Net expense ratio = (Commissions and collection expenses + Operating and general and administrative expenses associated with underwriting) / Net premiums written x 100

(Mitsui Direct General Insurance Co., Ltd. (Non-Consolidated))

Premiums Written and Claims Paid by Line

Direct Premiums Written by Lines of Insurance (excluding Deposit premiums from policyholders)

	(Yen in millions)
	Six months ended September 30, 2009						Six months ended September 30, 2010
			Share		Change				Share		Change
Lines of Insurance	Amount		%		%		Amount		%		%
Fire and Allied		—		—		—		—		—		—
Marine		—		—		—		—		—		—
Personal Accident		61		0.4		68.7		70		0.4		14.9
Voluntary Automobile		15,610		99.6		11.8		16,039		99.6		2.7
Compulsory Automobile Liability		—		—		—		—		—		—
Other		—		—		—		—		—		—
Total		15,672		100.0		11.9		16,110		100.0		2.8
Deposit premiums from policyholders		—				—		—				—

Net Premiums Written by Lines of Insurance

	(Yen in millions)
	Six months ended September 30, 2009						Six months ended September 30, 2010
			Share		Change				Share		Change
Lines of Insurance	Amount		%		%		Amount		%		%
Fire and Allied		—		—		—		—		—		—
Marine		—		—		—		—		—		—
Personal Accident		61		0.4		68.7		70		0.5		14.9
Voluntary Automobile		15,560		98.8		11.8		15,986		98.5		2.7
Compulsory Automobile Liability		129		0.8		5.4		167		1.0		29.4
Other		—		—		—		—		—		—
Total		15,751		100.0		11.9		16,224		100.0		3.0

Net Claims Paid by Lines of Insurance

	(Yen in millions)
	Six months ended September 30, 2009						Six months ended September 30, 2010
			Change		Net loss				Change		Net loss
Lines of Insurance	Amount		%		ratio %		Amount		%		ratio %
Fire and Allied		—		—		—		—		—		—
Marine		—		—		—		—		—		—
Personal Accident		20		52.8		47.3		30		48.1		52.8
Voluntary Automobile		9,567		21.3		68.1		11,300		18.1		77.4
Compulsory Automobile Liability		106		20.8		82.0		139		31.7		83.5
Other		—		—		—		—		—		—
Total		9,694		21.3		68.2		11,470		18.3		77.4

(Note) Net loss ratio is calculated using the sum of net claims paid and loss adjustment expenses.

(Mitsui Direct General Insurance Co., Ltd. (Non-Consolidated))

Solvency Margin Ratio

	(Yen in millions)
	As of September 30, 2010			As of March 31, 2010
(A) Total amount of solvency margin		10,686			10,738
Total net assets		9,745			9,510
Reserve for price fluctuation		15			13
Contingency reserve		0			0
Catastrophe reserve		523			1,033
General bad debts reserve		0			0
Net unrealized gains/losses on securities (Prior to tax effect deductions)		401			180
Net unrealized gains/losses on land		—			—
Excess of policyholders’ contract deposits		—			—
Subordinated debts, etc.		—			—
Deductions		—			—
Others		—			—
(B) Total amount of risks		3,207			3,206
General insurance risk (R1)		2,798			2,798
Third sector insurance risk (R2)		—			—
Assumed interest risk (R3)		0			0
Asset management risk (R4)		226			219
Business administration risk (R5)		99			99
Catastrophe risk (R6)		300			300
(C) Solvency margin ratio [(A)/{(B)×1/2}]×100		666.4	%		669.8	%

(Mitsui Sumitomo Kirameki Life Insurance Co., Ltd. (Non-Consolidated))

Results for the Six Months Ended September 30, 2010

Amount of Policies in Force and New Policies

(1) Amount of policies in force

	(Yen in millions)
	As of September 30, 2010				As of March 31, 2010
	Number of policies				Number of policies
	(in thousands)		Amount		(in thousands)		Amount
Individual Insurance		1,204		9,427,276		1,131		9,129,287
Individual Annuities		69		319,109		67		315,415
Group Insurance		—		2,452,271		—		2,699,819
Group Annuities		—		—		—		—

(Note) The amount in individual annuities is the sum of (a) the funds to be held at the time annuity payments are to commence for an annuity for which payment has not yet commenced, and (b) the amount of policy reserve for an annuity for which payments have commenced.

(2) Amount of new policies

	(Yen in millions)
	Six months ended September 30, 2009								Six months ended September 30, 2010
	Number of								Number of
	policies						Net increase		policies						Net increase
	(in thousands)		Amount		New policies		by conversion		(in thousands)		Amount		New policies		by conversion
Individual Insurance		103		790,636		790,636		—		119		813,311		813,311		—
Individual Annuities		2		16,576		16,576		—		3		18,310		18,310		—
Group Insurance		—		20,103		20,103		—		—		20,049		20,049		—
Group Annuities		—		—		—		—		—		—		—		—

(Note) The amount of individual annuities is the funds to be held at the time annuity payments are to commence.

Annualized Premiums

(1) Amount of policies in force

	(Yen in millions)
	As of September 30, 2010		As of March 31, 2010
Individual Insurance		178,427		175,780
Individual Annuities		18,991		18,800
Total		197,418		194,580
Medical coverage, living benefits, etc.		36,907		33,795
(2) Amount of new policies
	(Yen in millions)
	Six months ended		Six months ended
	September 30, 2009		September 30, 2010
Individual Insurance		12,907		14,143
Individual Annuities		962		1,032
Total		13,869		15,175
Medical coverage, living benefits, etc.		3,696		4,563

(Notes)
1.		An annualized premium is the annual total of premiums that is obtained by multiplying the amount of a single payment with the number of payments per year in accordance with the premium payment method. An annualized premium for a single-payment policy is the premium divided by the number of years of coverage.
2.		“Medical coverage, living benefits, etc.” shows the portion of annualized premiums that corresponds to medical coverage benefits (for hospitalization, surgeries, etc.), living benefits (for specified diseases, nursing care, etc.), and premium waiver benefits (excluding those for disability, but including those for specified diseases, nursing care, etc.)

(Mitsui Sumitomo Kirameki Life Insurance Co., Ltd. (Non-Consolidated))

Selected Results of Operations

	(Yen in millions)
	Six months ended		Six months ended
	September 30, 2009		September 30, 2010		Change
Insurance premiums and other		108,660		114,970		6,310
Investment income		10,171		10,841		670
Insurance claims and other		64,431		63,329		(1,101	)
Investment expenses		11		674		663

Total Assets

	(Yen in millions)
	As of September 30, 2010			As of March 31, 2010
Total assets		1,201,174			1,148,341
Solvency Margin Ratio
	(Yen in millions)
	As of September 30, 2010			As of March 31, 2010
(A) Total amount of solvency margin		140,047			124,409
Total capital		48,046			49,086
Reserve for price fluctuation		1,724			1,600
Contingency reserve		10,149			9,870
General bad debts reserve		9			14
Net unrealized gains/losses on securities×90%		26,037			12,195
Net unrealized gains/losses on land×85%		—			—
Excess of continued Zillmerized reserve		52,633			50,246
Brought in capital		—			—
Subordinated debt, etc.		—			—
Deductions		—			—
Others		1,446			1,396
(B) Total amount of risks		12,164			11,682
Insurance risk (R1)		6,627			6,604
Third sector insurance risk (R8)		2,021			1,814
Assumed interest risk (R2)		673			666
Asset management risk (R3)		7,397			6,962
Business administration risk (R4)		334			320
Minimum guarantee risk (R7)		—			—
(C) Solvency margin ratio [(A)/{(B)×1/2}]×100		2,302.5	%		2,129.7	%

(Aioi Life Insurance Co., Ltd. (Non-Consolidated))

Results for the Six Months Ended September 30, 2010

Amount of Policies in Force and New Policies

(1) Amount of policies in force

	(Yen in millions)
	As of September 30, 2010				As of March 31, 2010
	Number of policies				Number of policies
	(in thousands)		Amount		(in thousands)		Amount
Individual Insurance		527		5,780,982		498		5,577,308
Individual Annuities		78		276,865		75		265,997
Group Insurance		—		2,361,050		—		2,322,437
Group Annuities		—		470		—		477

(2) Amount of new policies

	(Yen in millions)
	Six months ended September 30, 2009								Six months ended September 30, 2010
	Number of								Number of
	policies						Net increase		policies						Net increase
	(in thousands)		Amount		New policies		by conversion		(in thousands)		Amount		New policies		by conversion
Individual Insurance		40		513,978		513,978		—		45		473,943		473,943		—
Individual Annuities		4		15,091		15,091		—		5		19,239		19,239		—
Group Insurance		—		25,693		25,693		—		—		5,532		5,532		—
Group Annuities		—		—		—		—		—		—		—		—

(Note) The amount of individual annuities is the funds to be held at the time annuity payments are to commence.

Annualized Premiums

(1) Amount of policies in force

	(Yen in millions)
	As of September 30, 2010		As of March 31, 2010
Individual Insurance		59,386		58,519
Individual Annuities		15,578		15,029
Total		74,964		73,548
Medical coverage, living benefits, etc.		7,296		7,336
(2) Amount of New Policies
	(Yen in millions)
	Six months ended		Six months ended
	September 30, 2009		September 30, 2010
Individual Insurance		3,815		3,747
Individual Annuities		917		1,053
Total		4,733		4,801
Medical coverage, living benefits, etc.		352		238

(Notes)

1.		An annualized premium is the annual total of premiums that is obtained by multiplying the amount of a single payment with the number of payments per year in accordance with the premium payment method. An annualized premium for a single-payment policy is the premium divided by the number of years of coverage.
2.		“Medical coverage, living benefits, etc.” shows the portion of annualized premiums that corresponds to medical coverage benefits (for hospitalization, surgeries, etc.), living benefits (for specified diseases, nursing care, etc.), and premium waiver benefits (excluding those for disability, but including those for specified diseases, nursing care, etc.)

(Aioi Life Insurance Co., Ltd. (Non-Consolidated))

Selected Results of Operations

	(Yen in millions)
	Six months ended		Six months ended
	September 30, 2009		September 30, 2010		Change
Insurance premiums and other		48,988		53,321		4,333
Investment income		4,532		5,329		796
Insurance claims and other		19,622		20,497		874
Investment expenses		675		332		(343	)

Total Assets

	(Yen in millions)
	As of September 30, 2010			As of March 31, 2010
Total assets		524,112			467,966
Solvency Margin Ratio
	(Yen in millions)
	As of September 30, 2010			As of March 31, 2010
(A) Total amount of solvency margin		82,936			74,227
Total capital		32,857			32,617
Reserve for price fluctuation		605			558
Contingency reserve		7,417			7,142
General bad debts reserve		0			—
Net unrealized gains/losses on securities×90%		7,853			1,759
Net unrealized gains/losses on land×85%		—			—
Excess of continued Zillmerized reserve		31,316			29,722
Brought in capital		—			—
Subordinated debt, etc.		—			—
Deductions		—			—
Others		2,885			2,427
(B) Total amount of risks		7,707			7,443
Insurance risk (R1)		4,731			4,594
Third sector insurance risk (R8)		1,135			1,092
Assumed interest risk (R2)		234			230
Asset management risk (R3)		4,433			4,250
Business administration risk (R4)		210			203
Minimum guarantee risk (R7)		—			—
(C) Solvency margin ratio [(A)/{(B)×1/2}]×100		2,152.0	%		1,994.3	%

(Mitsui Sumitomo MetLife Insurance Co., Ltd. (Non-Consolidated))

Results for the Six Months Ended September 30, 2010

Amount of Policies in Force and New Policies

(1) Amount of policies in force

	(Yen in millions)
	As of September 30, 2010				As of March 31, 2010
	Number of policies				Number of policies
	(in thousands)		Amount		(in thousands)		Amount
Individual Insurance		9		113,841		9		114,009
Individual Annuities		403		2,862,948		387		3,023,577
Group Insurance		—		—		—		—
Group Annuities		—		—		—		—

(Note) The amount in individual annuities is the sum of (a) the funds to be held at the time annuity payments are to commence (in the case of an individual variable annuity, insurance premium reserve) for an annuity for which payment has not yet commenced and (b) the amount of policy reserve for an annuity for which payments have commenced.

(2) Amount of new policies

	(Yen in millions)
	Six months ended September 30, 2009								Six months ended September 30, 2010
	Number of								Number of
	policies						Net increase		policies						Net increase
	(in thousands)		Amount		New policies		by conversion		(in thousands)		Amount		New policies		by conversion
Individual Insurance		0		525		525		—		0		2,358		2,358		—
Individual Annuities		36		240,232		240,232		—		22		127,141		127,141		—
Group Insurance		—		—		—		—		—		—		—		—
Group Annuities		—		—		—		—		—		—		—		—

(Note) The amount of individual annuities is the funds to be held at the time annuity payments are to commence (in the case of an individual variable annuity, insurance premium reserve at the time of enrollment.)

Annualized Premiums

(1) Amount of policies in force

	(Yen in millions)
	As of September 30, 2010		As of March 31, 2010
Individual Insurance		9,578		9,578
Individual Annuities		451,071		522,135
Total		460,649		531,714
Medical coverage, living benefits, etc.		87		103
(2) Amount of new policies
	(Yen in millions)
	Six months ended		Six months ended
	September 30, 2009		September 30, 2010
Individual Insurance		43		211
Individual Annuities		136,838		56,562
Total		136,882		56,774
Medical coverage, living benefits, etc.		0		—

(Notes)
1.		An annualized premium is the annual total of premiums that is obtained by multiplying the amount of a single payment with the number of payments per year in accordance with the premium payment method. An annualized premium for a single-payment policy is the premium divided by the number of years of coverage.
2.		“Medical coverage, living benefits, etc.” shows the portion of annualized premiums that corresponds to medical coverage benefits (for hospitalization, surgeries, etc.), living benefits (for specified diseases, nursing care, etc.), and premium waiver benefits (excluding those for disability, but including those for specified diseases, nursing care, etc.)

(Mitsui Sumitomo MetLife Insurance Co., Ltd. (Non-Consolidated))

Selected Results of Operations

	(Yen in millions)
	Six months ended		Six months ended
	September 30, 2009		September 30, 2010		Change
Insurance premiums and other		265,404		128,827		(136,577	)
Investment income		278,863		9		(278,853	)
Insurance claims and other		63,217		106,264		43,047
Investment expenses		278		158,448		158,170

Total Assets

	(Yen in millions)
	As of September 30, 2010			As of March 31, 2010
Total assets		2,968,175			3,116,508
Separate account balance		2,381,358			2,586,618
Solvency Margin Ratio
	(Yen in millions)
	As of September 30, 2010			As of March 31, 2010
(A) Total amount of solvency margin		172,496			174,313
Total capital		44,550			35,408
Reserve for price fluctuation		940			682
Contingency reserve		15,122			13,930
General bad debts reserve		—			—
Net unrealized gains/losses on securities×90%		352			(23	)
Net unrealized gains/losses on land×85%		—			—
Excess of continued Zillmerized reserve		111,530			123,314
Subordinated debt, etc.		—			1,000
Deductions		—			—
Others		—			—
(B) Total amount of risks		34,392			32,949
Insurance risk (R1)		32			17
Third sector insurance risk (R8)		19			20
Assumed interest risk (R2)		2,836			2,747
Asset management risk (R3)		10,719			9,386
Business administration risk (R4)		1,003			960
Minimum guarantee risk (R7)		19,833			19,854
(C) Solvency margin ratio [(A)/{(B)×1/2}]×100		1,003.0	%		1,058.0	%

7. Financial Statements for Major Consolidated Subsidiaries

(Mitsui Sumitomo Insurance Co., Ltd., non-consolidated)

Non-consolidated Balance Sheets

	(Yen in millions)
	As of September 30, 2010			As of March 31, 2010 (Summarized balance sheet for the previous business year)
Items	Amount			Amount
(Assets)
Cash deposits and savings		139,210			183,387
Call loans		30,600			33,700
Securities bought under resale agreements		36,992			15,998
Monetary claims bought		108,022			102,027
Money trusts		7,783			10,524
Investments in securities		4,069,587			4,327,376
Loans		711,090			718,587
Tangible fixed assets		232,893			239,336
Intangible fixed assets		8,829			7,465
Other assets		380,439			337,004
Deferred tax assets		38,715			—
Customers’ liabilities under acceptances and guarantees		3,633			4,577
Bad debts reserve		(7,381	)		(8,004	)
Total assets		5,760,417			5,971,982
(Liabilities)
Underwriting funds:		4,309,180			4,386,065
Outstanding claims		523,818			540,188
Underwriting reserves		3,785,362			3,845,876
Bonds		94,973			94,969
Other liabilities:		172,092			155,581
Income tax payable		8,976			9,969
Lease obligations		892			964
Asset retirement obligations		5,175			—
Other liabilities		157,048			144,647
Reserve for pension and retirement benefits		81,846			81,009
Reserve for pension and retirement benefits for officers and operating officers		1,882			2,003
Accrued bonuses for employees		7,959			10,375
Reserve under the special law:		4,019			2,689
Reserve for price fluctuation		4,019			2,689
Deferred tax liabilities		—			29,397
Liabilities under acceptances and guarantees		3,633			4,577
Total liabilities		4,675,587			4,766,667
(Net assets)
Common stock		139,595			139,595
Capital surplus		93,107			93,107
Retained earnings		406,427			402,893
Total shareholders’ equity		639,130			635,596
Unrealized gains on investments, net of tax		431,798			567,580
Deferred hedge gains (losses), net of tax		13,900			2,138
Total valuation and translation adjustment		445,699			569,718
Total net assets		1,084,830			1,205,315
Total liabilities and net assets		5,760,417			5,971,982

(Mitsui Sumitomo Insurance Co., Ltd., non-consolidated)

Non-Consolidated Statements of Income

	(Yen in millions)
	Six months ended			Six months ended
	September 30, 2009			September 30, 2010
Items	Amount			Amount
Ordinary income:		841,812			862,144
Underwriting income:		776,768			798,963
Net premiums written		607,189			624,564
Deposit premiums from policyholders		71,059			81,976
Investment income on deposit premiums from policyholders		27,761			25,944
Reversal of outstanding claims		20,347			5,916
Reversal of underwriting reserves		50,336			60,513
Investment income:		63,077			61,627
Interest and dividends received		63,939			61,299
Investment gains on money trusts		499			36
Gains on sale of securities		5,418			18,510
Gains on derivative transactions		19,197			5,497
Transfer of investment income on deposit premiums from policyholders		(27,761	)		(25,944	)
Other ordinary income		1,967			1,553
Ordinary expenses:		770,841			815,472
Underwriting expenses:		641,540			693,948
Net claims paid		374,417			381,675
Loss adjustment expenses		36,111			36,570
Commission and collection expenses		103,708			108,448
Maturity refunds to policyholders		126,105			165,332
Investment expenses:		20,746			17,109
Investment losses on money trusts		43			255
Losses on sale of securities		5,253			3,748
Losses on devaluation of securities		8,073			7,655
Operating expenses and general and administrative expenses		104,569			103,340
Other ordinary expenses:		3,985			1,073
Interest paid		1,188			817
Ordinary profit		70,971			46,672
Extraordinary income:		1,850			927
Extraordinary losses:		931			11,007
Income before income taxes		71,890			36,591
Income taxes — current		27,233			7,256
Refund of income taxes for prior periods		(13,947	)		—
Income taxes — deferred		9,573			1,951
Total income taxes		22,859			9,207
Net income		49,031			27,384

(Aioi Insurance Co., Ltd., non-consolidated)

Non-consolidated Balance Sheets

	(Yen in millions)
				As of March 31, 2010
				(Summarized balance
				sheet for the previous
	As of September 30, 2010			business year)
Items	Amount			Amount
(Assets)
Cash deposits and savings		253,997			176,629
Monetary claims bought		3,483			14,094
Money trusts		1,918			4,604
Investments in securities		1,226,888			1,386,289
Loans		307,945			324,158
Tangible fixed assets		148,305			147,982
Intangible fixed assets		3,885			4,525
Other assets		220,290			219,970
Deferred tax assets		163,731			143,849
Customers’ liabilities under acceptances and guarantees		2,500			3,000
Bad debts reserve		(1,725	)		(1,811	)
Total assets		2,331,220			2,423,293
(Liabilities)
Underwriting funds:		1,886,081			1,917,613
Outstanding claims		307,187			312,860
Underwriting reserves		1,578,893			1,604,752
Other liabilities:		81,540			102,529
Income tax payable		1,900			1,790
Lease obligations		81			130
Asset retirement obligations		442			—
Other liabilities		79,117			100,608
Reserve for pension and retirement benefits		20,905			19,893
Reserve for pension and retirement benefits for officers and operating officers		—			84
Accrued bonuses for employees		4,454			4,362
Reserve under the special law:		3,163			2,541
Reserve for price fluctuation		3,163			2,541
Liabilities under acceptances and guarantees		2,500			3,000
Total liabilities		1,998,645			2,050,024
(Net assets)
Common stock		100,005			100,005
Capital surplus		44,081			44,097
Retained earnings		190,039			201,321
Treasury stock		—			(7,963	)
Total shareholders’ equity		334,126			337,460
Unrealized gains on investments, net of tax		(1,551	)		35,808
Total valuation and translation adjustments		(1,551	)		35,808
Total net assets		332,575			373,268
Total liabilities and net assets		2,331,220			2,423,293

(Aioi Insurance Co., Ltd., non-consolidated)

Non-Consolidated Statements of Income

	(Yen in millions)
	Six months ended			Six months ended
	September 30, 2009			September 30, 2010
Items	Amount			Amount
Ordinary income:		487,999			501,925
Underwriting income:		459,166			476,159
Net premiums written		397,899			407,364
Deposit premiums from policyholders		23,995			25,607
Investment income on deposit premiums from policyholders		9,400			8,589
Reversal of outstanding claims		6,959			5,672
Reversal of underwriting reserves		20,720			25,859
Investment income:		26,851			24,457
Interest and dividends received		24,814			23,009
Investment gains on money trusts		661			0
Gains on sale of securities		3,049			8,654
Gains on derivative transactions		7,137			1,211
Transfer of investment income on deposit premiums from policyholders		(9,400	)		(8,589	)
Other ordinary income		1,981			1,308
Ordinary expenses:		460,351			477,820
Underwriting expenses:		378,298			395,107
Net claims paid		236,784			246,542
Loss adjustment expenses		24,457			18,716
Commission and collection expenses		70,415			73,437
Maturity refunds to policyholders		43,926			51,219
Investment expenses:		6,258			8,682
Losses on trading securities		3			4
Losses on sale of securities		1,381			24
Losses on devaluation of securities		3,319			6,753
Operating expenses and general and administrative expenses		74,800			73,919
Other ordinary expenses:		994			110
Interest paid		0			0
Ordinary profit		27,647			24,105
Extraordinary income:		395			36
Extraordinary losses:		2,142			13,814
Income before income taxes		25,900			10,327
Income taxes — current		3,175			2,046
Income taxes — deferred		5,867			1,224
Total income taxes		9,042			3,270
Net income		16,858			7,056

(Nissay Dowa General Insurance Co., Ltd., non-consolidated)

Non-consolidated Balance Sheets

	(Yen in millions)
				As of March 31, 2010
				(Summarized balance
				sheet for the previous
	As of September 30, 2010			business year)
Items	Amount			Amount
(Assets)
Cash deposits and savings		40,160			28,378
Call loans		—			17,900
Investments in securities		787,896			836,761
Loans		35,837			36,621
Tangible fixed assets		58,646			56,945
Intangible fixed assets		233			234
Other assets		83,923			83,480
Deferred tax assets		62,729			46,850
Bad debts reserve		(762	)		(907	)
Investment loss reserve		—			(2	)
Total assets		1,068,665			1,106,262
(Liabilities)
Underwriting funds:		860,664			870,632
Outstanding claims		133,064			127,557
Underwriting reserves		727,599			743,074
Other liabilities:		32,787			28,965
Income taxes payable		831			928
Lease obligations		38			—
Asset retirement obligations		786			—
Other liabilities		31,130			28,037
Reserve for pension and retirement benefits		499			416
Accrued bonuses for employees		—			579
Reserve under the special law:		1,571			1,246
Reserve for price fluctuation		1,571			1,246
Total liabilities		895,522			901,840
(Net assets)
Common stock		47,328			47,328
Capital surplus		40,303			40,307
Retained earnings		62,872			73,805
Treasury stock		—			(4,948	)
Total shareholders’ equity		150,504			156,493
Unrealized gains on investments, net of tax		22,638			47,929
Total valuation and translation adjustments		22,638			47,929
Total net assets		173,142			204,422
Total liabilities and net assets		1,068,665			1,106,262

(Nissay Dowa General Insurance Co., Ltd., non-consolidated)

Non-Consolidated Statements of Income

	(Yen in millions)
	Six months ended			Six months ended
	September 30, 2009			September 30, 2010
Items	Amount			Amount
Ordinary income:		187,373			198,476
Underwriting income:		170,638			176,890
Net premiums written		154,945			150,963
Deposit premiums from policyholders		6,849			6,772
Investment income on deposit premiums from policyholders		4,041			3,667
Reversal of underwriting reserves		4,795			15,474
Investment income:		16,253			21,087
Interest and dividends received		10,517			10,107
Gains on sale of securities		9,494			14,625
Transfer of investment income on deposit premiums from policyholders		(4,041	)		(3,667	)
Other ordinary income		481			499
Ordinary expenses:		180,994			191,908
Underwriting expenses:		146,973			154,670
Net claims paid		94,546			97,311
Loss adjustment expenses		9,110			9,102
Commission and collection expenses		26,701			26,287
Maturity refunds to policyholders		16,179			16,145
Provision for outstanding claims		306			5,507
Investment expenses:		6,854			8,177
Losses on sale of securities		2,790			3,812
Losses on devaluation of securities		3,409			3,141
Losses on derivative transactions		533			843
Operating expenses and general and administrative expenses		26,532			28,398
Other ordinary expenses:		634			662
Interest paid		0			0
Ordinary profit		6,378			6,568
Extraordinary income:		71			25
Extraordinary losses:		1,358			9,422
Income (loss) before income taxes		5,091			(2,829	)
Income taxes — current		1,492			82
Income taxes — deferred		60			(1,559	)
Total income taxes		1,552			(1,477	)
Net income (loss)		3,538			(1,352	)

(Mitsui Direct General Insurance Co., Ltd., non-consolidated)

Non-consolidated Balance Sheets

	(Yen in millions)
				As of March 31, 2010
				(Summarized balance sheet
	As of September 30, 2010			for the previous business year)
Items	Amount			Amount
(Assets)
Cash deposits and savings		2,959			3,080
Investments in securities		34,505			33,467
Tangible fixed assets		151			153
Intangible fixed assets		1,669			2,004
Other assets		4,331			4,790
Bad debts reserve		(1	)		(1	)
Total assets		43,615			43,494
(Liabilities)
Underwriting funds:		32,448			32,598
Outstanding claims		14,123			13,496
Underwriting reserves		18,325			19,102
Other liabilities:		810			955
Income taxes payable		92			107
Asset retirement obligations		9			—
Other liabilities		707			848
Accrued bonuses for employees		148			215
Reserve under the special law:		15			13
Reserve for price fluctuation		15			13
Deferred tax liabilities		161			72
Total liabilities		33,584			33,856
(Net assets)
Common stock		32,600			32,600
Capital surplus		2,500			2,500
Retained earnings		(25,354	)		(25,589	)
Total shareholders’ equity		9,745			9,510
Unrealized gains on investments, net of tax		284			128
Total valuation and translation adjustment adjustments		284			128
Total net assets		10,030			9,638
Total liabilities and net assets		43,615			43,494

(Mitsui Direct General Insurance Co., Ltd., non-consolidated)

Non-Consolidated Statements of Income

	(Yen in millions)
	Six months ended			Six months ended
	September 30, 2009			September 30, 2010
Items	Amount			Amount
Ordinary income:		15,951			17,118
Underwriting income:		15,852			17,008
Net premiums written		15,751			16,224
Investment income on deposit premiums from policyholders		6			6
Reversal of underwriting reserves		94			777
Investment income:		97			109
Interest and dividends received		102			115
Gains on sale of securities		0			0
Transfer of investment income on deposit premiums from policyholders		(6	)		(6	)
Other ordinary income		1			0
Ordinary expenses:		16,582			16,872
Underwriting expenses:		12,614			13,308
Net claims paid		9,694			11,470
Loss adjustment expenses		1,044			1,086
Commission and collection expenses		135			124
Provision for outstanding claims		1,739			627
Investment expenses:		—			—
Operating expenses and general and administrative expenses		3,967			3,564
Other ordinary expenses:		0			0
Ordinary profit (loss)		(630	)		245
Extraordinary income:		0			0
Extraordinary losses:		7			4
Income before income taxes		(637	)		241
Income taxes — current		6			6
Total income taxes		6			6
Net income (loss)		(644	)		235

(Mitsui Sumitomo Kirameki Life Insurance Co., Ltd., non-consolidated)

Non-consolidated Balance Sheets

	(Yen in millions)
				As of March 31, 2010
				(Summarized balance sheet
	As of September 30, 2010			for the previous business year)
Items	Amount			Amount
(Assets)
Cash deposits and savings		10,655			13,056
Investments in securities		1,138,837			1,083,096
Loans		30,677			30,899
Tangible fixed assets		1,426			1,413
Intangible fixed assets		2,123			1,480
Agencies receivable		74			62
Reinsurance receivable		30			112
Other assets		17,432			17,962
Deferred tax assets		—			344
Bad debts reserve		(84	)		(86	)
Total assets		1,201,174			1,148,341
(Liabilities)
Underwriting funds:		1,119,984			1,082,224
Outstanding claims		12,085			11,642
Underwriting reserves		1,105,506			1,068,346
Reserve for dividends to policyholders		2,392			2,235
Agencies payable		2,108			1,869
Reinsurance payable		129			131
Other liabilities:		4,418			4,213
Income tax payable		892			26
Lease obligations		539			587
Asset retirement obligations		118			—
Other liabilities		2,869			3,599
Reserve for pension and retirement benefits		548			475
Reserve for pension and retirement benefits for officers and operating officers		83			88
Reserve under the special law:		1,724			1,600
Reserve for price fluctuation		1,724			1,600
Deferred tax liabilities		4,583			—
Total liabilities		1,133,580			1,090,603
(Net assets)
Common stock		35,500			35,500
Capital surplus		13,214			13,214
Retained earnings		406			371
Total shareholders’ equity		49,120			49,086
Unrealized gains on investments, net of tax		18,472			8,651
Total valuation and translation adjustments		18,472			8,651
Total net assets		67,593			57,738
Total liabilities and net assets		1,201,174			1,148,341

(Mitsui Sumitomo Kirameki Life Insurance Co., Ltd., non-consolidated)

Non-Consolidated Statements of Income

	(Yen in millions)
	Six months ended			Six months ended
	September 30, 2009			September 30, 2010
Items	Amount			Amount
Ordinary income:		119,108			125,967
Insurance premiums and other:		108,660			114,970
Insurance premiums		108,564			114,919
Investment income:		10,171			10,841
Interest and dividends received		9,790			10,344
Gains on sale of securities		380			497
Other ordinary income		276			154
Ordinary expenses:		117,553			123,665
Insurance claims and other:		64,431			63,329
Insurance claims		14,815			16,140
Annuity payments		1,249			1,668
Benefits		2,738			3,111
Surrender benefits		44,974			41,573
Other refunds		390			579
Provision for underwriting reserves and other:		33,806			37,603
Provision for outstanding claims		617			443
Provision for underwriting reserves		33,189			37,159
Provision of interest portion of reserves for dividends to policyholders		0			0
Investment expenses:		11			674
Interest paid		5			11
Losses on sale of securities		4			504
Losses on devaluation of securities		—			157
Operating expenses:		17,944			20,347
Other ordinary expenses:		1,359			1,710
Ordinary profit		1,555			2,301
Extraordinary income:		8			3
Extraordinary losses:		123			808
Provision for reserve for dividends to policyholders		1,271			1,221
Income before income taxes		169			275
Income taxes — current		(147	)		873
Income taxes — deferred		287			(632	)
Total income taxes		140			240
Net income		28			34

(Aioi Life Insurance Co., Ltd., non-consolidated)

Non-consolidated Balance Sheets

	(Yen in millions)
				As of March 31, 2010
				(Summarized balance sheet for
	As of September 30, 2010			the previous business year)
Items	Amount			Amount
(Assets)
Cash deposits and savings		4,310			5,167
Call loans		560			—
Securities bought under resale agreements		20,594			1,999
Receivables under securities borrowing transactions		25,593			—
Investments in securities		443,713			432,680
Loans		12,961			12,570
Tangible fixed assets		431			218
Intangible fixed assets		1,787			1,964
Agencies receivable		59			10
Reinsurance receivable		677			827
Other assets		11,582			8,438
Deferred tax assets		1,890			4,089
Bad debts reserve		(50	)		(0	)
Total assets		524,112			467,966
(Liabilities)
Underwriting funds:		454,152			429,603
Outstanding claims		3,451			3,085
Underwriting reserves		447,232			422,823
Reserve for dividends to policyholders		3,468			3,694
Agencies payable		1,139			1,145
Reinsurance payable		253			198
Other liabilities:		28,757			2,362
Payables under securities lending transactions		26,154			—
Income tax payable		758			1,196
Asset retirement obligations		13			—
Other liabilities		1,831			1,165
Reserve for pension and retirement benefits		234			206
Reserve for pension and retirement benefits for officers and operating officers		25			27
Reserve under the special law:		605			558
Reserve for price fluctuation		605			558
Total liabilities		485,168			434,101
(Net assets)
Common stock		30,000			30,000
Capital surplus		473			473
Retained earnings		2,904			2,143
Total shareholders’ equity		33,378			32,617
Unrealized gains on investments, net of tax		5,566			1,247
Total valuation and translation adjustments		5,566			1,247
Total net assets		38,944			33,864
Total liabilities and net assets		524,112			467,966

(Aioi Life Insurance Co., Ltd., non-consolidated)

Non-Consolidated Statements of Income

	(Yen in millions)
	Six months ended		Six months ended
	September 30, 2009		September 30, 2010
Items	Amount		Amount
Ordinary income:		53,590		58,799
Insurance premiums and other:		48,988		53,321
Insurance premiums		47,936		52,751
Investment income:		4,532		5,329
Interest and dividends received		4,057		4,598
Gains on sale of securities		475		730
Other ordinary income		69		148
Ordinary expenses:		50,647		56,035
Insurance claims and other:		19,622		20,497
Insurance claims		5,537		5,998
Annuity payments		322		449
Benefits		1,877		1,909
Surrender benefits		10,964		11,256
Other refunds		208		202
Provision for underwriting reserves and other:		20,656		24,776
Provision for outstanding claims		146		365
Provision for underwriting reserves		20,509		24,409
Provision of interest portion of reserves for dividends to policyholders		0		0
Investment expenses:		675		332
Interest paid		0		5
Losses on sale of securities		475		—
Losses on derivative transactions		0		1
Operating expenses:		9,095		9,764
Other ordinary expenses:		597		665
Ordinary profit		2,943		2,764
Extraordinary income:		0		—
Extraordinary losses:		42		517
Provision for reserve for dividends to policyholders		1,088		1,001
Income before income taxes		1,812		1,245
Income taxes — current		633		737
Income taxes — deferred		58		(253	)
Total income taxes		691		484
Net income		1,121		760

(Mitsui Sumitomo MetLife Insurance Co., Ltd., non-consolidated)

Non-consolidated Balance Sheets

	(Yen in millions)
				As of March 31, 2010
				(Summarized balance sheet
				for the previous business
	As of September 30, 2010			year)
Items	Amount			Amount
(Assets)
Cash deposits and savings		10,428			18,831
Money trusts		556,181			484,441
Investments in securities		2,379,542			2,582,629
Loans		677			638
Tangible fixed assets		719			660
Intangible fixed assets		832			618
Reinsurance receivable		852			708
Other assets		5,364			8,921
Deferred tax assets		13,574			19,057
Total assets		2,968,175			3,116,508
(Liabilities)
Underwriting funds:		2,910,179			3,068,340
Outstanding claims		6,560			6,913
Underwriting reserves		2,903,619			3,061,426
Agencies payable		934			1,611
Reinsurance payable		1,226			1,468
Other liabilities:		10,093			9,012
Income tax payable		3			8
Lease obligations		218			232
Asset retirement obligations		190			—
Other liabilities		9,680			8,771
Reserve under the special law:		940			682
Reserve for price fluctuation		940			682
Total liabilities		2,923,374			3,081,115
(Net assets)
Common stock		41,060			41,060
Capital surplus		24,735			24,735
Retained earnings		(21,244	)		(30,386	)
Total shareholders’ equity		44,550			35,408
Unrealized gains on investments, net of tax		249			(14	)
Total valuation and translation adjustments		249			(14	)
Total net assets		44,800			35,393
Total liabilities and net assets		2,968,175			3,116,508

(Mitsui Sumitomo MetLife Insurance Co., Ltd., non-consolidated)

Non-Consolidated Statements of Income

	(Yen in millions)
	Six months ended		Six months ended
	September 30, 2009		September 30, 2010
Items	Amount		Amount
Ordinary income:		546,912		290,457
Insurance premiums and other:		265,404		128,827
Insurance premiums		261,828		125,205
Investment income:		278,863		9
Interest and dividends received		13		9
Investment gains on money trusts		30,934		—
Gains on separate accounts		247,678		—
Other ordinary income		2,645		161,620
Reversal of policy reserve		—		157,807
Ordinary expenses:		526,420		275,655
Insurance claims and other:		63,217		106,264
Insurance claims		17,018		19,783
Annuity payments		14,391		19,185
Benefits		3,991		15,016
Surrender benefits		16,735		39,512
Other refunds		898		1,163
Provision for underwriting reserves and other:		437,957		—
Provision for outstanding claims		671		—
Provision for underwriting reserves		437,286		—
Investment expenses:		278		158,448
Interest paid		32		22
Investment losses on money trusts		—		6,188
Losses on separate accounts		—		151,795
Operating expenses:		19,741		10,509
Other ordinary expenses:		5,225		432
Amortization of deferred assets under Article 113 of the Insurance Business Law		4,247		—
Ordinary profit		20,492		14,801
Extraordinary income:		—		—
Extraordinary losses:		270		323
Income before income taxes		20,221		14,478
Income taxes — current		4		3
Income taxes — deferred		7,338		5,332
Total income taxes		7,343		5,335
Net income		12,878		9,142

(Answer to joint questions from the press)

Mitsui Sumitomo Insurance Company, Limited, non-consolidated

Supplementary Information to Interim Financial Statements as of September 30, 2010

				(Yen in hundred millions)
								Six months ended September 30, 2010
	Six months ended													Change from six
	September 30,													months ended
	2009				FY 2009						Change from FY 2009			September 30, 2009
(1) Net premiums written		6,082				12,037			6,234			—			152
Increase ratio (%)		(5.3	%)			(2.9	%)		2.5	%		5.4	%		7.8	%
(2) Total assets		60,301				59,719			57,604			(2,115	)		(2,697	)
(3) Loss ratio (%)		67.5	%			70.3	%		67.1	%		(3.2	%)		(0.4	%)
(4) Expense ratio (%)		33.3	%			34.5	%		33.1	%		(1.4	%)		(0.2	%)
(5) Combined ratio (%)		100.8	%			104.8	%		100.2	%		(4.6	%)		(0.6	%)
Underwriting balance ratio (%)		(0.8	%)			(4.8	%)		(0.2	%)		4.6	%		0.6	%
(6) Automobile
-Net premiums written		2,663				5,367			2,759			—			96
Increase ratio (%)		(2.4	%)			(0.8	%)		3.6	%		4.4	%		6.0	%
-Underwriting balance ratio (%)		(4.7	%)			(7.6	%)		(6.4	%)		1.2	%		(1.7	%)
-Loss ratio (%)		71.4	%			73.4	%		73.7	%		0.3	%		2.3	%
-Expense ratio (%)		33.3	%			34.2	%		32.7	%		(1.5	%)		(0.6	%)
(7) Fire
- Net premiums written		876				1,794			895			—			18
Increase ratio (%)		0.3	%			1.8	%		2.1	%		0.3	%		1.8	%
-Underwriting balance ratio (%)		20.3	%			14.4	%		18.6	%		4.2	%		(1.7	%)
-Loss ratio (%)		39.2	%			43.3	%		40.5	%		(2.8	%)		1.3	%
-Expense ratio (%)		40.5	%			42.3	%		40.9	%		(1.4	%)		0.4	%
(8) Number of employees		15,318				15,151			15,002			(149	)		(316	)
(9) Number of agents		40,686				39,927			39,850			(77	)		(836	)

(Note) 1.		Net premiums written and other ratios are calculated excluding Good Result Return premiums of “ModoRich (proprietary automobile insurance product which contains a special clause related to premium adjustment and refund at maturity)”.
2.		Loss ratio = (Net claims paid + Loss adjustment expenses) / Net premiums written × 100
3.		Expense ratio = (Commissions and collection expenses + Operating expenses and general and administrative expenses related to underwriting) / Net premiums written × 100
4.		Combined ratio = Loss ratio + Expense ratio
5.		Underwriting balance ratio = 100 – Combined ratio
6.		Items shown with % within “Change from FY 2009” and “Change from Six months ended September 30, 2009” column, shows amount of balance compared to amount of FY 2009, and six months ended September 30, 2009, respectively.

<Reference> Consolidated Indices (Consolidated financial figures for MS&AD Insurance Group Holdings, Inc.)

	(Yen in hundred millions)
	(Reference: Added						Six months ended September 30, 2010
	figures of the three
	companies)			(Reference: Added
	Six months ended			figures of the three									Change from six
	September 30,			companies)									months ended
	2009			FY 2009						Change from FY 2009			September 30, 2009
(1) Ordinary income		17,219			33,995			17,211			—			(8	)
(2) Net premiums written		12,751			25,190			13,005			—			254
Increase ratio (%)		(5.2	%)		(2.8	%)		2.0	%		4.8	%		7.2	%
(3) Life insurance premiums written		998			2,129			1,138			—			140
Increase ratio (%)		(5.5	%)		4.0	%		14.1	%		10.1	%		19.6	%
(4) Ordinary profit		1,163			991			705			—			(457	)
(5) Net income		775			573			400			—			(374	)

(Note) Net premiums written are calculated excluding Good Result Return premiums of “ModoRich (proprietary automobile insurance product which contains a special clause related to premium adjustment and refund at maturity)”.

Mitsui Sumitomo Insurance Company, Limited, non-consolidated

(1) Disclosures on Bad Debts

[Credit Obligations under Risk Management]

	(Yen in hundred millions)
	Six months ended						Six months ended
	September 30, 2009			FY 2009			September 30, 2010
Currently in bankruptcy		0			14			14
Delinquent in payments		52			24			20
Delinquent in payments for 3 months or more		10			8			9
Favorable loan revisions completed		36			20			19
Total		99			67			64
Ratio to balance of loans (%)		1.4	%		0.9	%		0.9	%
Reference: balance of loans		7,321			7,185			7,110
[Results of Self Evaluations]
	(Yen in hundred millions)
	Six months ended						Six months ended
	September 30, 2009			FY 2009			September 30, 2010
No category		58,997			58,468			56,126
Category II		1,237			1,183			1,415
Category III		36			24			19
Category IV		112			105			149
Total category II-IV		1,386			1,314			1,584
Total		60,384			59,782			57,711

(Note) Total indicates the amount of balance before direct depreciation based on self evaluation (including impairment of securities, etc., and loss due to impairment of fixed assets).

Amount of balance before direct depreciation:

Six months ended September 30, 2009 ¥82 hundred millions

FY 2009 ¥63 hundred millions (not including ¥1 hundred millions loss due to impairment of fixed assets for the interim period)

Six months ended September 30, 2010 ¥107 hundred millions

(2) Loss on Devaluation of Securities Due to Impairment

	(Yen in hundred millions)
	Six months ended				Six months ended
	September 30, 2009		FY 2009		September 30, 2010
Bonds		—		—		—
Stocks		23		29		68
Foreign securities		53		14		8
Other securities		3		5		—
Total		80		48		76

Devaluation rules applied

In principle, marketable securities whose fair market value declined by 30 % or more of book value are devaluated.

Mitsui Sumitomo Insurance Company, Limited, non-consolidated

(3) Impairment of Fixed Assets

	(Yen in hundred millions)
	Six months ended				Six months ended
	September 30, 2009		FY 2009		September 30, 2010
Land		0		24		3
Buildings		1		10		28
Other		—		—		—
Total		1		34		31

(4) Unrealized Profit/losses of Securities

	(Yen in hundred millions)
	Six months ended					Six months ended
	September 30, 2009			FY 2009		September 30, 2010
Bonds		377			359		886
Stocks		7,150			8,467		6,010
Foreign securities		(217	)		59		(96	)
Other		36			59		42
Total		7,347			8,945		6,842

(Note) 1.		Above figures show amounts for other securities with fair market value.
2.		Other in six months ended September 30, 2009 and FY 2009 include beneficial interests of loan receivable trust processed as monetary claims bought.Other in six months ended September 30, 2010 includes negotiable certificate of deposits processed as cash and deposits and beneficial interests of loan receivable trust and commercial papers processed as monetary claims bought.

(5) Status of Underwriting Operations of Third-sector Insurance

(in hundreds)

Total number for six months ended

Breakdown of total number for six months

September 30, 2010

ended September 30, 2010

Changes from

Mitsui Sumitomo

six months ended

Insurance Company,

Number

September 30, 2009

Limited

Subsidiaries (Note 3)

Number of policies

787

106

681

(Note) 1.		Total and respective number of policies for Mitsui Sumitomo Insurance Company, Limited and its subsidiaries from April, 2010 to September, 2010.
2.		Above numbers show number of policies.
3.		Subsidiaries item show the number for Mitsui Sumitomo Kirameki Life Insurance Company, Limited.

(6) Impact of Natural Disasters

(Note) 1.		Above figures are based on natural disasters that occurred during respective fiscal year. Net claims paid including claims for natural disasters that occurred during the last fiscal year are ¥28 hundred million for six months ended September 30, 2009, ¥137 hundred million for FY 2009, and ¥37 hundred million for six months ended September 30, 2010.
2.		Accrued claims = Excess amount of outstanding claims over estimated recoveries

(7) Balance, Ratio to Balance and Amount of Provision for Catastrophe Reserve

	(Yen in hundred millions)
	Six months ended September 30, 2009							FY 2009							Six months ended September 30, 2010
Lines	Balance		Ratio to balance (%)			Provision		Balance		Ratio to balance (%)			Provision		Balance		Ratio to balance (%)			Provision
Fire		2,087		121.5	%		78		2,168		123.3	%		159		2,248		128.2	%		79
Marine		612		114.9	%		10		622		120.0	%		20		633		113.6	%		10
Personal accident		809		60.0	%		20		746		57.7	%		39		733		52.7	%		21
Voluntary Auto		85		1.6	%		85		171		3.2	%		171		88		1.6	%		88
Other		1,238		66.8	%		46		1,275		74.4	%		84		1,304		71.6	%		44
Total		4,833		44.8	%		241		4,985		46.8	%		475		5,008		45.4	%		244

(Note) 1.		Ratio to balance = Balance of catastrophe reserve / net premiums written (excluding premiums for earthquake insurance for household customers, compulsory auto liability insurance and Good Result Return of “ModoRich”) × 100 Ratio to balance for the interim period is calculated by doubling the net premiums written.
2.		Provision = Gross provision

Mitsui Sumitomo Insurance Company, Limited, non-consolidated

(8) Status of Reinsurance Underwriting

	(Yen in hundred millions)
	Six months ended September 30, 2009				Six months ended September 30, 2010
	Net reinsurance		Net reinsurance		Net reinsurance
u	premiums assumed		claims paid		premiums assumed		Net reinsurance claims paid
Fire		117		32		148		87
Marine		50		32		41		36
Personal accident		9		6		7		7
Voluntary auto		11		5		17		9
Compulsory auto liability		468		670		482		677
Other		88		73		82		52
Total		746		821		779		870
(9) Status of Ceded Reinsurance
	(Yen in hundred millions)
	Six months ended September 30, 2009				Six months ended September 30, 2010
	Net reinsurance		Net reinsurance		Net reinsurance		Net reinsurance
Lines	premiums ceded		recoveries		premiums ceded		recoveries
Fire		328		23		331		48
Marine		128		71		115		64
Personal accident		32		20		37		20
Voluntary auto		17		8		16		8
Compulsory auto liability		437		627		453		623
Other		138		67		136		40
Total		1,082		819		1,090		805

(Answer to joint questions from the press)

Aioi Insurance Co., Ltd., non-consolidated

Supplementary Information to Financial Statements as of September 30, 2010

	(Yen in hundred millions)
							Six months ended September 30, 2010
													Change from six
	Six months ended									Change from FY			months ended
	September 30, 2009			FY 2009						2009			September 30, 2009
(1) Net premiums written		3,978			7,940			4,073			—			94
Increase ratio (%)		(4.8	%)		(2.8	%)		2.4	%		5.2	%		7.2	%
(2) Total assets		24,359			24,232			23,312			(920	)		(1,046	)
(3) Loss ratio (%)		65.7	%		67.3	%		65.1	%		(2.2	%)		(0.6	%)
(4) Expense ratio (%)		35.5	%		35.5	%		35.3	%		(0.2	%)		(0.2	%)
(5) Combined ratio (%)		101.2	%		102.8	%		100.4	%		(2.4	%)		(0.8	%)
Underwriting balance ratio (%)		(1.2	%)		(2.8	%)		(0.4	%)		2.4	%		0.8	%
(6) Automobile
-Net premiums written		2,327			4,658			2,398			—			70
Increase ratio (%)		(1.2	%)		(0.2	%)		3.0	%		3.2	%		4.2	%
-Underwriting balance ratio (%)		0.6	%		(0.7	%)		0.9	%		1.6	%		0.3	%
-Loss ratio (%)		65.9	%		67.0	%		65.7	%		(1.3	%)		(0.2	%)
-Expense ratio (%)		33.5	%		33.7	%		33.4	%		(0.3	%)		(0.1	%)
(7) Fire
- Net premiums written		480			1,020			507			—			27
Increase ratio (%)		(2.8	%)		(0.6	%)		5.6	%		6.2	%		8.4	%
-Underwriting balance ratio (%)		20.1	%		17.7	%		18.9	%		1.2	%		(1.2	%)
-Loss ratio (%)		35.3	%		38.7	%		37.6	%		(1.1	%)		2.3	%
-Expense ratio (%)		44.6	%		43.6	%		43.5	%		(0.1	%)		(1.1	%)
(8) Number of employees		9,421			9,346			9,389			43			(32	)
(9) Number of agents		39,591			39,411			39,355			(56	)		(236	)

(Note)
1.		Loss ratio = (Net claims paid + Loss adjustment expenses) / Net premiums written × 100
2.		Expense ratio = (Commissions and collection expenses + Operating expenses and general and administrative expenses related to underwriting) / Net premiums written × 100
3.		Combined ratio = Loss ratio + Expense ratio
4.		Underwriting balance ratio = 100 – Combined ratio
5.		Items shown with % within “Change from FY 2009” and “Change from Six months ended September 30, 2009” column, shows amount of balance compared to amount of FY 2009, and six months ended September 30, 2009, respectively.

Aioi Insurance Co., Ltd., non-consolidated

(1) Disclosures on Bad Debts

[Credit Obligations under Risk Management]

	(Yen in hundred millions)
	Six months ended						Six months ended
	September 30, 2009			FY 2009			September 30, 2010
Currently in bankruptcy		0			0			0
Delinquent in payments		24			14			14
Delinquent in payments for 3 months or more		12			10			6
Favorable loan revisions completed		7			15			19
Total		44			41			40
Ratio to balance of loans (%)		1.3	%		1.3	%		1.3	%
Reference: balance of loans		3,399			3,241			3,079

[Results of Self Evaluations]

	(Yen in hundred millions)
	Six months ended				Six months ended
	September 30, 2009		FY 2009		September 30, 2010
No category		22,661		22,651		21,431
Category II		254		264		369
Category III		12		3		3
Category IV		46		42		82
Total category II-IV		313		309		454
Total		22,975		22,960		21,886

(Note) Figures above are amounts before depreciation (before appropriating valuation loss and impairment loss).

(2) Loss on Devaluation of Securities Due to Impairment

	(Yen in hundred millions)
	Six months ended				Six months ended
	September 30, 2009		FY 2009		September 30, 2010
Bonds		—		—		—
Stocks		30		15		67
Foreign securities		3		4		—
Other securities		—		9		0
Total		33		29		67

Devaluation rules applied

In principle, marketable securities whose fair market value declined by 30% or more of book value are devaluated.

Aioi Insurance Co., Ltd., non-consolidated

(3) Impairment of Fixed Assets

	(Yen in hundred millions)
	Six months ended				Six months ended
	September 30, 2009		FY 2009		September 30, 2010
Land		0		1		5
Buildings		0		1		1
Other		—		—		—
Total		1		2		7

(4) Unrealized Profit/losses of Securities

	(Yen in hundred millions)
	Six months ended						Six months ended
	September 30, 2009			FY 2009			September 30, 2010
Bonds		108			98			198
Stocks		550			637			201
Foreign securities		(286	)		(173	)		(329	)
Other		(45	)		1			(86	)
Total		327			563			(16	)

(Note) Above figures show amounts for other securities with fair market value. Other includes monetary claims bought.

(5) Status of Underwriting Operations of Third-sector Insurance (*)

(in hundreds)

Total number for six months ended

Breakdown of total number for six months

September 30, 2010

ended September 30, 2010

Changes from the

Mitsui Sumitomo

six months ended

Insurance Company,

Number

September 30, 2009

Limited

Subsidiaries (Note 3)

Number of policies

528

305

520

(Note)		Total and respective number of policies for Aioi Insurance Co., Ltd. and its subsidiaries from April, 2010 to September, 2010.
		Figures of the subsidiaries are figures of Aioi Life Insurance Company, Limited.
*		Total of medical insurance and cancer insurance (injury insurance and nursing care insurance excluded)

(6) Impact of Natural Disasters

(Note)		Above figures are based on natural disasters that occurred during respective fiscal year.
		Net claims paid including claims for natural disasters that occurred during the last fiscal year are 7 hundred million yen for six months ended September 30, 2009, 57 hundred million yen for FY 2009, and 7 hundred million yen for six months ended September 30, 2010.
*		Accrued claims = Excess amount of outstanding claims over estimated recoveries

(7) Balance, Ratio to Balance and Amount of Provision for Catastrophe Reserve

	(Yen in hundred millions)
	Six months ended September 30,														Six months ended September 30,
	2009							FY 2009							2010
Lines	Balance		Ratio to balance (%)			Provision		Balance		Ratio to balance (%)			Provision		Balance		Ratio to balance (%)			Provision
Fire		1,007		106.9	%		28		1,039		103.8	%		60		1,069		107.3	%		29
Marine		44		127.2	%		0		45		122.0	%		1		46		121.2	%		0
Personal accident		350		75.6	%		7		356		79.3	%		14		363		78.7	%		7
Voluntary Auto		665		14.3	%		116		477		10.2	%		232		327		6.8	%		120
Other		278		37.3	%		17		290		42.8	%		31		297		42.4	%		15
Total		2,347		34.3	%		170		2,209		32.4	%		340		2,103		30.1	%		173

(Note) Ratio to balance = Balance of catastrophe reserve / net premiums written (excluding premiums for earthquake insurance for household customers and compulsory automobile liability insurance) × 100 Ratio to balance for the interim period is calculated by doubling the net premiums written (excluding premiums for earthquake insurance for household customers and compulsory automobile liability insurance) Provision = Gross provision

Aioi Insurance Co., Ltd., non-consolidated

(8) Status of Reinsurance Underwriting

	(Yen in hundred millions)
	Six months ended September 30, 2009				Six months ended September 30, 2010
	Net reinsurance		Net reinsurance claims		Net reinsurance		Net reinsurance claims
Lines	premiums assumed		paid		premiums assumed		paid
Fire		56		16		69		17
Marine		6		4		4		3
Personal accident		0		1		7		2
Voluntary auto		74		43		128		60
Compulsory auto liability		346		490		362		496
Other		27		34		21		27
Total		511		590		593		607
(9) Status of Ceded Reinsurance
	(Yen in hundred millions)
	Six months ended September 30, 2009				Six months ended September 30, 2010
	Net reinsurance		Net reinsurance		Net reinsurance		Net reinsurance
Lines	premiums ceded		recoveries		premiums ceded		recoveries
Fire		146		9		129		11
Marine		7		3		6		4
Personal accident		18		8		18		7
Voluntary auto		26		13		25		15
Compulsory auto liability		412		572		421		576
Other		33		11		29		21
Total		645		619		630		637

(Answer to joint questions from the press)

Nissay Dowa General Insurance Co., Ltd., non-consolidated

Supplementary Information to Financial Statements as of September 30, 2010

	(Yen in hundred millions)
	Six months ended
	September 30, 2009			FY 2009			Six months ended September 30, 2010
													Change from six
										Change from FY			months ended
										2009			September 30, 2009
(1) Net premiums written		1,549			3,126			1,509			—			(39	)
Increase ratio (%)		(0.5	%)		0.6	%		(2.6	%)		(3.2	%)		(2.1	%)
(2) Total assets		11,104			11,062			10,686			(375	)		(417	)
(3) Loss ratio (%)		66.9	%		68.8	%		70.5	%		1.7	%		3.6	%
(4) Expense ratio (%)		33.2	%		33.8	%		35.0	%		1.2	%		1.8	%
(5) Combined ratio (%)		100.1	%		102.6	%		105.5	%		2.9	%		5.4	%
Underwriting balance ratio (%)		(0.1	%)		(2.6	%)		(5.5	%)		(2.9	%)		(5.4	%)
(6) Automobile -Net premiums written		802			1,606			817			—			14
Increase ratio (%)		0.4	%		1.1	%		1.8	%		0.7	%		1.4	%
-Underwriting balance ratio (%)		(3.9	%)		(7.0	%)		(7.7	%)		(0.7	%)		(3.8	%)
-Loss ratio (%)		72.2	%		75.1	%		75.5	%		0.4	%		3.3	%
-Expense ratio (%)		31.7	%		31.9	%		32.3	%		0.4	%		0.6	%
(7) Fire - Net premiums written		233			511			187			—			(45	)
Increase ratio (%)		11.9	%		8.7	%		(19.7	%)		(28.4	%)		(31.6	%)
-Underwriting balance ratio (%)		21.2	%		20.5	%		3.8	%		(16.7	%)		(17.4	%)
-Loss ratio (%)		37.7	%		38.7	%		46.8	%		8.1	%		9.1	%
-Expense ratio (%)		41.1	%		40.9	%		49.4	%		8.5	%		8.3	%
(8) Number of employees		4,453			4,445			4,876			431			423
(9) Number of agents		14,791			14,402			13,889			(513	)		(902	)

(Note) 1.		Loss ratio = (Net claims paid + Loss adjustment expenses) / Net premiums written × 100
2.		Expense ratio = (Commissions and collection expenses + Operating expenses and general and administrative expenses related to underwriting) / Net premiums written × 100
3.		Combined ratio = Loss ratio + Expense ratio
4.		Underwriting balance ratio = 100 – Combined ratio
5.		Items shown with % within “Change from FY 2009” and “Change from Six months ended September 30, 2009” column, shows amount of balance compared to amount of FY 2009, and six months ended September 30, 2009, respectively.

Nissay Dowa General Insurance Co., Ltd., non-consolidated

(1) Disclosures on Bad Debts

[Credit Obligations under Risk Management]				(Yen in hundred millions)
	Six months ended						Six months ended
	September 30, 2009			FY 2009			September 30, 2010
Currently in bankruptcy		0			0			0
Delinquent in payments		2			3			2
Delinquent in payments for 3 months or more		—			—			—
Favorable loan revisions completed		—			0			—
Total		3			3			2
Ratio to balance of loans (%)		0.8	%		1.0	%		0.8	%
Reference: balance of loans		384			366			358
[Results of Self Evaluations]							(Yen in hundred millions)
	Six months ended						Six months ended
	September 30, 2009			FY 2009			September 30, 2010
No category		11,037			10,997			10,644
Category II		63			61			35
Category III		1			1			0
Category IV		1			2			37
Total category II-IV		67			64			73
Total		11,104			11,062			10,718
(Note) Figures for six months ended September 30, 2009 and FY 2009 above are amounts before depreciation and provision after application of accounting for financial instruments and accounting for depreciation on fixed assets.
Figures for six months ended September 30, 2010 above are amounts before depreciation and provision and before application of accounting for financial instruments and accounting for depreciation on fixed assets.
(2) Loss on Devaluation of Securities Due to Impairment
	(Yen in hundred millions)
	Six months ended						Six months ended
	September 30, 2009			FY 2009			September 30, 2010
Bonds		—			—			—
Stocks		33			50			31
Foreign securities		0			1			—
Other securities		—			—			—
Total		34			51			31

Devaluation rules applied

In principle, marketable securities whose fair market value declined by 30% or more of book value are devaluated assuming that there is no possibility of recovery of their fair value.

Nissay Dowa General Insurance Co., Ltd., non-consolidated

(3) Impairment of Fixed Assets

(Yen in hundred millions)

Six months ended

September 30, 2009

FY 2009

September 30, 2010

Land

—

Buildings

—

Other

—

Total

—

(4) Unrealized Profit/losses of Securities

	(Yen in hundred millions)
	Six months ended						Six months ended
	September 30, 2009			FY 2009			September 30, 2010
Bonds		48			41			80
Stocks		820			795			391
Foreign securities		(142	)		(103	)		(114	)
Other		12			19			(11	)
Total		738			752			345

(5) Status of Underwriting Operations of Third-sector Insurance

(in hundreds)

Total number for six months ended

Breakdown of total number for six months ended

September 30, 2010

Mitsui Sumitomo

Insurance Company,

Lines

Number

Changes from FY2009

Limited

Subsidiaries (Note 3)

Number of policies

—

(Note)		Total and respective number of policies for Nissay Dowa General Insurance Co., Ltd. and its subsidiaries from April, 2009 to March, 2010.
*		Total of medical insurance and cancer insurance (injury insurance and nursing care insurance excluded)

(6) Impact of Natural Disasters

(Note)		Above figures are based on natural disasters that occurred during respective fiscal year.
		Net claims paid including claims for natural disasters that occurred during the last fiscal year are 16 hundred million yen for six months ended September 30, 2009, 52 hundred million yen for FY 2009, and 15 hundred million yen for six months ended September 30, 2010.
*		Accrued claims = Excess amount of outstanding claims over estimated recoveries

(7) Balance, Ratio to Balance and Amount of Provision for Catastrophe Reserve

	(Yen in hundred millions)
	Six months ended September 30,														Six months ended September 30,
	2009							FY 2009							2010
Lines	Balance		Ratio to balance (%)			Provision		Balance		Ratio to balance (%)			Provision		Balance		Ratio to balance (%)			Provision
Fire		560		122.7	%		9		571		113.9	%		20		578		158.7	%		7
Marine		79		196.2	%		0		80		177.9	%		0		79		174.9	%		0
Personal accident		155		53.1	%		4		146		51.7	%		8		145		50.8	%		4
Voluntary Auto		119		7.4	%		101		92		5.7	%		92		41		2.5	%		41
Other		226		56.4	%		9		235		58.9	%		17		242		63.9	%		8
Total		1,141		40.8	%		124		1,126		39.7	%		139		1,087		40.1	%		62

(Note)		Ratio to balance = Balance of catastrophe reserve / net premiums written (excluding premiums for earthquake insurance for household customers and compulsory automobile liability insurance) × 100
		Ratio to balance for the interim period is calculated by doubling the net premiums written (excluding premiums for earthquake insurance for household customers and compulsory automobile liability insurance)
		Provision = Gross provision

Nissay Dowa General Insurance Co., Ltd., non-consolidated

(8) Status of Reinsurance Underwriting

	(Yen in hundred millions)
	Six months ended September 30, 2009				Six months ended September 30, 2010
	Net reinsurance		Net reinsurance claims		Net reinsurance		Net reinsurance claims
Lines	premiums assumed		paid		premiums assumed		paid
Fire		14		7		11		4
Marine		4		3		2		4
Personal accident		0		1		0		1
Voluntary auto		0		0		0		0
Compulsory auto liability		94		134		99		135
Other		28		30		25		10
Total		142		178		140		156
(9) Status of Ceded Reinsurance
	(Yen in hundred millions)
	Six months ended September 30, 2009				Six months ended September 30, 2010
	Net reinsurance		Net reinsurance		Net reinsurance		Net reinsurance
Lines	premiums ceded		recoveries		premiums ceded		recoveries
Fire		98		25		93		11
Marine		11		7		10		11
Personal accident		6		2		6		2
Voluntary auto		2		0		4		1
Compulsory auto liability		108		139		103		143
Other		165		122		187		118
Total		392		296		406		288

(Answer to joint questions from the press)

Added Figures of Mitsui Sumitomo Insurance, Aioi Insurance and Nissay Dowa General Insurance

	(Yen in hundred millions)
							Six months ended September 30, 2010
													Change from six
	Six months ended									Change from			months ended
	September 30, 2009			FY 2009						FY 2009			September 30, 2009
(1) Net premiums written		11,611			23,104			11,818			—			206
Increase ratio (%)		(4.5	%)		(2.4	%)		1.8	%		4.2	%		6.3	%
(2) Total assets		95,765			95,015			91,603			(3,412	)		(4,162	)
(3) Loss ratio (%)		66.8	%		69.1	%		66.8	%		(2.3	%)		0.0	%
(4) Expense ratio (%)		34.0	%		34.7	%		34.1	%		(0.6	%)		0.1	%
(5) Combined ratio (%)		100.8	%		103.8	%		100.9	%		(2.9	%)		0.1	%
Underwriting balance ratio (%)		(0.8	%)		(3.8	%)		(0.9	%)		2.9	%		(0.1	%)
(6) Automobile
-Net premiums written		5,794			11,631			5,974			—			180
Increase ratio (%)		(1.5	%)		(0.3	%)		3.1	%		3.4	%		4.6	%
-Underwriting balance ratio (%)		(2.5	%)		(4.8	%)		(3.6	%)		1.2	%		(1.1	%)
-Loss ratio (%)		69.3	%		71.1	%		70.7	%		(0.4	%)		1.4	%
-Expense ratio (%)		33.2	%		33.7	%		32.9	%		(0.8	%)		(0.3	%)
(7) Fire
- Net premiums written		1,590			3,326			1,590			—			(0	)
Increase ratio (%)		0.9	%		2.0	%		(0.0	%)		(2.0	%)		(0.9	%)
-Underwriting balance ratio (%)		20.4	%		16.3	%		17.0	%		0.7	%		(3.4	%)
-Loss ratio (%)		37.8	%		41.2	%		40.3	%		(0.9	%)		2.5	%
-Expense ratio (%)		41.8	%		42.5	%		42.7	%		0.2	%		0.9	%
(8) Number of employees		29,192			28,942			29,267			325			75
(9) Number of agents		95,068			93,740			93,094			(646	)		(1,974	)

(Note) 1.		Calculated excluding Good Result Return premiums of “ModoRich (original proprietary automobile insurance product of Mitsui Sumitomo Insurance Co., Ltd. which contains a special clause related to premium adjustment and refund at maturity)”.
2.		Loss ratio = (Net claims paid + Loss adjustment expenses) / Net premiums written × 100
3.		Expense ratio = (Commissions and collection expenses + Operating expenses and general and administrative expenses related to underwriting) / Net premiums written × 100
4.		Combined ratio = Loss ratio + Expense ratio
5.		Underwriting balance ratio = 100 – Combined ratio
6.		Items shown with % within “Change from FY 2009” and “Change from Six months ended September 30, 2009” column, shows amount of balance compared to amount of FY 2009, and six months ended September 30, 2009, respectively.

Note Regarding Forward-looking Statements

This document includes “forward-looking statements” that reflect the plans and expectations of MS&AD Insurance Group Holdings, Inc. (the “Company”) with respect to its business and results of operations. To the extent that statements in this document do not relate to historical or current facts, they constitute forward-looking statements. These forward-looking statements are based on the current assumptions and beliefs of the Company in light of the information currently available to it, and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause the actual results, performance, achievements or financial position of the Company to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. The Company undertakes no obligation to publicly update any forward-looking statements after the date of this document. Investors are advised to consult any further disclosures by the Company in its subsequent domestic filings in Japan and filings with the U.S. Securities and Exchange Commission.

The risks, uncertainties and other factors referred to above include, but are not limited to: (1) economic conditions in Japan, the United States, Europe and China; (2) the extent of competition faced by the Company from Japan’s other major non-life insurance companies and new entrants in the Japanese non-life insurance market; (3) the extent of further deregulation of the Japanese insurance industry; (4) occurrence of natural disasters in Japan and elsewhere; (5) occurrence of losses the type or magnitude of which could not be foreseen at the time of writing the insurance policies covering such losses; (6) the price and availability of reinsurance; and (7) the performance of the Company’s investments.

(Yen in hundred millions)

Six months ended

Six months ended

September 30, 2009

September 30, 2010

Direct claims paid

Net claims paid

Accrued claims