[PPT] - FY2008 Interim Financial Results FY2008 Interim Financial Results PowerPoint Presentation

SLIDE 1

FY2008 Interim Financial Results FY2008 Interim Financial Results & FY2008 Management Policy FY2008 Management Policy Aioi Insurance Company, Limited Aioi Insurance Company, Limited

December 1, 2008 December 1, 2008

SLIDE 2

Table of Contents Table of Contents

I. I. FY2008 Interim Fi FY2008 Interim Financial S nancial Summa mmary

1. Aioi Insurance Co., Ltd.
1. Aioi Insurance Co., Ltd.
2. Consolidated Financial Re
2. Consolidated Financial Results

sults II. FY2008 Managem Y2008 Management nt Poli Policy cy

1. Revenue Base
1. Revenue Base

(1) Auto Insurance (Domestic) (1) Auto Insurance (Domestic) (2) Auto Insurance (Overseas) (2) Auto Insurance (Overseas) (3) Long-Te (3) Long-Term Fire Insurance m Fire Insurance (4) Cross S (4) Cross Selling lling

2. Profit Base
2. Profit Base

(1) Insurance Business (1) Insurance Business (2) Invest (2) Investment Stra ment Strategy tegy (3) Group Co (3) Group Companies’ mpanies’ Business Business 3.

3. Further Development

Further Development of the Basis fo

f the Basis for Grow

r Growth th

4. FY2008 Busines
4. FY2008 Business Plan

Plan 1 4 5 6 8 9 11 11 12 12 13 13 15 15 16 16

SLIDE 3

I. FY2008 Interim Financial Summary
I. FY2008 Interim Financial Summary

SLIDE 4

FY2007 1H FY2008 Change Solvency Margin Ratios 862.6% 811.7%

50.9P

Total Solvency Margin 841.7 774.8

66.9

Total Risk 195.1 190.9

4.2

Solvency cy M Marg rgin

1

1. Aioi Insurance Co., Lt
1. Aioi Insurance Co., Ltd. (1) Financial Highlights
d. (1) Financial Highlights
While n

hile net prem t premiums iums writ written d ten decreased, creased, signs of recovery were signs of recovery were s seen after July een after July 2008 2008 d due t e to in incr creas easing new n non-fl

fleet

contra contracts. cts.

Stable

Stable unde underwrit writing ing profit achie profit achieved ed. . 5. 5.4 4 billio billion ye n yen pro n profit being it being 2. 2.4 bi 4 billio llion n yen yen more th more than the forec n the forecast due ast due to to dec decreasing easing ma major n jor natural atural cat catastrophes astrophes ev events. ents.

Whi

While int intere rest/d st/div ivid idend end i incom come steadi steadily ly incre increased com ased compared to ared to the the fore forecast,. cast,.investm nvestment inco ent income was was 9. 9.3 3 bi billio llion ye n yen ,1 n ,1.4 .4 billi billion yen le yen less than the ss than the fore forecast cast due due to evaluat evaluation loss of

n loss of securit

securities. es.

Net

Net income income was was alm almost the same as the st the same as the fore forecast. cast.

Solvency mar

lvency margin ratios remain in ratios remained at ed at the 80 the 800% level 0% level even th ven though

ugh

it d it decreased creased com compared ared to fiscal 2007 due t fiscal 2007 due to evalu evaluation tion loss of loss of securities securities

While n

ile net prem t premiums iums writ written d ten decreased, creased, signs of recovery were signs of recovery were s seen after July een after July 2008 2008 d due t e to in incr creas easing new n non-fl

fleet

contra contracts. cts.

Stable

Stable unde underwrit writing ing profit achie profit achieved ed. . 5. 5.4 4 billio billion ye n yen pro n profit being it being 2. 2.4 bi 4 billio llion n yen yen more th more than the forec the forecast due st due to to dec decreasing easing ma major n jor natural tural cat catastrophes astrophes ev events. ents.

Whi

While int intere rest/d st/div ivid idend end i incom come steadi steadily ly incre increased com ased compared to ared to the the fore forecast,. cast,.investm nvestment inco ent income was was 9. 9.3 3 bi billio llion ye n yen ,1 n ,1.4 .4 billi billion yen le yen less than the ss than the fore forecast cast due due to evaluat evaluation loss of

n loss of securit

securities. es.

Net

Net income income was was alm almost the same as the st the same as the fore forecast. cast.

Solvency mar

lvency margin ratios remain in ratios remained at ed at the 80 the 800% level 0% level even th ven though

ugh

it d it decreased creased com compared ared to fiscal 2007 due t fiscal 2007 due to evalu evaluation tion loss of loss of securities securities

Change Change % Direct Premiums Written 444.4 431.6

12.8
2.9%

Net Premiums Written 428.6 418.0

10.5
2.5%

425.0 Excluding CALI 352.7 350.9

1.7
0.5%

357.9 Underwriting Profit 5.8 5.4

0.4
7.6%

3.0 Net Premium Growth 0.4%

2.5%
2.9P
0.8%

Net Loss Ratio 58.8% 61.8% 3.0P 60.7% Net Expense Ratio 32.7% 34.2% 1.5P 33.1% Net Premium Growth 0.5%

0.5%
1.0P

1.5% Net Loss Ratio 56.3% 57.9% 1.6P 56.7% Net Expense Ratio 35.1% 35.2% 0.1P 33.9% Interest/Dividend Income 44.9 23.3

21.5
48.1%

22.0 Investment Profit and Loss 17.8 9.3

8.4
47.6%

10.7 20.6 13.2

7.3
35.5%

11.0 17.7 6.5

11.1
62.9%

7.0 Ra Rati tios Rati tios Ex Excluding CA CALI In Inve vestments Net Income Ordinary Income 1H FY2007 1H FY2008 1H FY2008 Forecast Insurance U Underwrit rwriting

<Note> Unit: Billions of Yen All amounts are truncated. All figures rounded to one decimal place. Net loss ratios include loss adjustment expense.

SLIDE 5

2

Net Premiums Written FY2008 Forecast Change % Change % Change % Fire and Allied Lines 48.9 1.1% 49.4 1.0% 3.7% Marine 2.9 2.2% 3.0 2.6% 2.6% Personal Accident 24.8

1.6%

23.9

3.7%
4.1%

Voluntary Automobile 238.0 0.4% 235.5

1.1%
1.4%

CALI 75.9

0.3%

67.0

11.6%
17.6%

Other 37.8 2.1% 38.9 2.9% 5.6% Total 428.6 0.4% 418.0

2.5%
3.2%

Total excluding CALI 352.7 0.5% 350.9

0.5%
0.1%

Net Loss Paid FY2008 Forecast Net Loss Ratio Net Loss Ratio Net Loss Ratio Fire and Allied Lines 16.0 34.1% 15.7 33.4% 35.5% Marine 1.9 69.1% 1.2 44.2% 50.0% Personal Accident 9.0 39.8% 10.9 49.5% 50.5% Voluntary Automobile 132.9 60.3% 134.2 61.7% 64.8% CALI 49.6 70.5% 50.8 81.7% 90.2% Other 25.0 69.5% 26.6 72.3% 72.6% Total 234.6 58.8% 239.6 61.8% 64.8% 1H FY2007 1H FY2008 1H FY2007 1H FY2008

By Class of Business By Class of Business By Class of Business By Class of Business

<Note> Unit: Billions of Yen All amounts are truncated. All figures rounded to one decimal place. Net loss ratios include loss adjustment expense.

1. 1. Aioi Insurance Co., Ltd. (2) Class of Business Aioi Insurance Co., Ltd. (2) Class of Business

SLIDE 6

3

1. Aioi Insurance Co., Ltd.
1. Aioi Insurance Co., Ltd. (3) Investment Portfolio

(3) Investment Portfolio

Invest vestment Condition of ment Condition of Securitized Securitized Products Products Invest vestment Condition of ment Condition of Securitized Securitized Products Products

Secur Securities ties Credit Derivativ it Derivative

Change from

Mar. 31, 2008

Change from

Mar. 31, 2008

Change from

Mar. 31, 2008

Evaluation Loss Profit and Loss

n Sale

Total SIV Bond 0.3

0.7
0.1

0.4

0.1
CLO

3.0

1.9

2.5

1.6
0.5

0.3

1.0
0.1
1.2

CMBS 6.9

0.3

6.9

0.3
0.0
0.0
RMBS

31.3

10.2

31.3

10.6
0.0
0.4
0.1
0.1

ABS & Other 14.9

6.6

13.7

6.0
1.1

0.5

0.5
0.5

Total 56.6

19.1

55.3

18.9
1.3

0.2

1.0
0.8
1.8

Profit and Loss for 1H FY2008 Booked Amount Fair Value Unrealized Profit and Loss

Currency Hedge Change from

Mar. 31, 2008

Change from

Mar. 31, 2008

Change from

Mar. 31, 2008

Fair Value Change Cancellation Total ① Profit and Loss on Currency Hedge ② ①＋② ABS-CDO 52.6

0.9
47.4
6.4

5.2

7.4
6.4
6.4
0.5
7.0

Corporate CDO 74.2

1.7
1.7

0.4 72.4

1.3

0.4

0.4
0.4

Other 26.0

3.0
0.1

0.1 25.8

2.8

0.1

0.0

0.1

0.1

Total 152.8

5.7
49.3
5.8

103.5

11.6
5.8
0.0
5.8
0.5
6.4

Profit and Loss for 1H FY2008 Notional Amount Evaluation Loss Outstanding Exposure

As a

As a result result of

f selli

selling some securities, ng some securities, booke booked a amou

unt decrease

nt decreased by by 19.1 19.1 billio billion y n yen n from from end of end of the previous the previous period to 5 period to 56.6 6.6 bill billion y ion yen n .

Realize

ealized los loss for for 1H 1H FY200 FY2008 8 was was 1.8 1.8 billio billion y n yen mainly due to n mainly due to measures to measures to red reduce inv uce investments on secu stments on securities. rities.

As a

As a result result of

f selli

selling some securities, ng some securities, booke booked a amou

unt decrease

nt decreased by by 19.1 19.1 billio billion y n yen n from from end of end of the previous the previous period to 5 period to 56.6 .6 bill billion y ion yen n .

Realize

ealized los loss for for 1H 1H FY200 FY2008 8 was was 1.8 1.8 billio billion y n yen mainly due to n mainly due to measures to measures to red reduce inv ce investments on secu stments on securities. rities.

Outstan

Outstanding exposu g exposure re of A

f ABS-

S-CDO CDO in cred in credit derivative derivatives decrease s decreased to to 5.2 5.2 billio billion y n yen mainly due to b n mainly due to booking

oking of
f

evaluation losses t evaluation losses to date. date.

Co

Contin ntinuous measures uous measures are being are being taken to red taken to reduce Cor ce Corporate CDOs

rate CDOs and

d

thers
thers.
Outstan

Outstanding exposu g exposure re of A

f ABS-

S-CDO CDO in cred in credit derivative derivatives decrease s decreased to to 5.2 5.2 billio billion y n yen mainly due to b n mainly due to booking

oking of
f

evaluation losses t evaluation losses to date. date.

Co

Contin ntinuous measures uous measures are being are being taken to red taken to reduce Cor ce Corporate CDOs

rate CDOs and

d

thers
thers.

<Note> Unit: Billions of Yen All amounts are truncated.

Other Other

No ex

No exposure to l posure to leveraged raged finance finance dea deals, ls, financial gu financial guaran arante tee e insu insurances and rances and re reinsurance from insurance from m mono noline insure insurers. rs.

No

No exposure exposure to s to secu curit ritized p zed products, s

ducts, such

ch as bonds, a as bonds, and RMBS, nd RMBS, issued by m issued by mortgage associ rtgage associations and ations and co corpo rporations. ations.

No ex

No exposure to l posure to leveraged raged finance finance dea deals, ls, financial gu financial guaran arante tee e insu insurances and rances and re reinsurance from insurance from m mono noline insure insurers. rs.

No

No exposure exposure to s to secu curit ritized p zed products, s

ducts, such

ch as bonds, a as bonds, and RMBS, nd RMBS, issued by m issued by mortgage associ rtgage associations and ations and co corpo rporations. ations.

SLIDE 7

1H 1H FY2007 FY2008 Change Change % Operating Income 568.5 537.2

31.2
5.5%

Net Premiums Written 440.1 430.4

9.6
2.2%

Life Insurance Premiums 34.8 36.2 1.3 4.0% Ordinary Income 10.2 11.4 1.2 11.7% Aioi Insurance 20.6 13.2

7.3
35.5%

Aioi Life

7.9

1.3 9.3

AMaGIC *
2.3
2.5
0.1
Net Income

10.2 5.7

4.4
43.7%

Aioi Insurance 17.7 6.5

11.1
62.9%

Aioi Life

5.1

0.8 5.9

AMaGIC *
2.3
2.5
0.2
4
2. Consolidated Financial Results
2. Consolidated Financial Results
Co

Consol

lid

idat ated s subsi bsidia diaries’ ries’ (Aioi Life Aioi Life and AMa and AMaGIC) sale IC) sales gr s growth

wth continued.

continued.

Aioi Life a

Aioi Life achieved a profit of 0.8 billion hieved a profit of 0.8 billion ye yen for n for 1 1H FY20 FY2008 as 08 as a result of standard a result of standard pol polic icy reser reserve provision being comple e provision being completed. ted.

Ratio of consolida

Ratio of consolidated net income to ed net income to parent company’s inc parent company’s income improved me improved from 0.6 to 0.9. from 0.6 to 0.9.

Co

Consol

lid

idat ated s subsi bsidia iaries’ ries’ (Aioi Life Aioi Life and AMa and AMaGIC) sale IC) sales gr s growth

wth continued.

continued.

Aioi Life a

Aioi Life achieved a profit of 0.8 billion hieved a profit of 0.8 billion ye yen for n for 1 1H FY20 FY2008 as 08 as a result of standard a result of standard pol policy reser reserve provision being comple e provision being completed. ted.

Ratio of consolida

Ratio of consolidated net income to ed net income to parent company’s inc parent company’s income improved me improved from 0.6 to 0.9. from 0.6 to 0.9.

<Note> Unit: Billions of Yen All amounts are truncated. All figures rounded to one decimal place.

Refere Reference

Proportion Change Proportion Net Premiums Written 440.1 100.0% 430.4

2.2%

100.0% Aioi Insurance 428.6 97.4% 418.0

2.5%

97.1% AMaGIC * 11.4 2.6% 12.3 8.3% 2.9% Life Insurance Premiums 34.8 100.0% 36.2 4.0% 100.0% Aioi Life 34.1 98.0% 35.4 3.8% 97.9% AMaGIC * 0.7 2.2% 0.8 9.5% 2.3% 1H FY2007 1H FY2008

<Note> Figures of each company are not adjusted for consolidated results. *AMaGIC (Aioi Motor and General Insurance Company of Europe Ltd.) is a European F&I underwriter

f Aioi

Group.

SLIDE 8

II. Management Policy
II. Management Policy

SLIDE 9

The numb

The number of vehicles er of vehicles th that Aio t Aioi insures keep i insures keeps s increa increasing due to rising the number of new ing due to rising the number of new contract contracts. s.

The Toyota market is a pill

The Toyota market is a pillar of s ar of sale les growth growth strate strategy.

The numb

The number of vehicles er of vehicles insured through Toyota insured through Toyota dea dealers ha lers has inc s increa eased due to i sed due to increa eased i sed insurance rance penetra penetratio tion ra n rate by offering insurance p te by offering insurance prod

ducts to a

ucts to all ll customers who bo stomers who bought ught new ca new cars a rs at the the dealers. dealers. 5

1. Revenue Base (1) Au
1. Revenue Base (1) Auto Insurance (Domestic)

to Insurance (Domestic)

Sales Growth Strateg Sales Growth Strategy Sales Growth Strateg Sales Growth Strategy

*1 Based on sales performance. *2 E/I loss ratio (loss adjustment expense excluded.)

Dome Domestic Toyota Ma stic Toyota Market (Strategic rket (Strategic Pillar) Pillar) Dome Domestic Toyota Ma stic Toyota Market (Strategic rket (Strategic Pillar) Pillar)

Ch Char arac acter terist stic ic Products Products

Co Convini ini Plan Plan Nagaraku Nagaraku Plan Plan Lexus Owner Lexus Owners’ s’ Auto Insurance Plan Auto Insurance Plan Long- Long-Term Auto Insurance Pl erm Auto Insurance Plan an Offer Aioi’s know how Offer Aioi’s know how to increase to increase insurance penetra insurance penetratio ion ra n rate te Increa Increased Ra ed Ratio of Number of tio of Number of Ve Vehicles Aioi Insures * hicles Aioi Insures *1

Dealer Dealer Sup Support

rt

Low Loss Ra Low Loss Ratio for A tio for Auto Insura to Insuranc nce ( e (Stra Strate tegic ic Ba Base se) Low Loss Ra Low Loss Ratio for A tio for Auto Insura to Insuranc nce ( e (Stra Strate tegic ic Ba Base se)

58.5 58.5 57.8 50.0 55.0 60.0 65.0 70.0 FY2006 FY2007 FY2008 Plan

(%)

Loss ratio,

Loss ratio, a strategic a strategic base base for s for sale les growt s growth, kept , kept at low level t low level

Underw

Underwriting and loss pr riting and loss prevention will further be evention will further be strengthened to kee trengthened to keep low lo p low loss ratio. ratio. Loss R Loss Ratio of Auto Insurance * tio of Auto Insurance *2

Increase Ratio of Number of Increase Ratio of Number of Veh Vehicles es Aioi I Aioi Insures res t throug rough Toyot h Toyota Dealers Dealers *1

+3.6% +3.6% +2.0% +2.0% +2.6% +2.6% +0.3% +0.3%

1.2
1.2%

1H FY2006 1H FY2007 1Q FY2008 Ne New n w non-fl n-flee eet contracts have stead t contracts have steadily ly increased after creased after July 2008. July 2008.

3.7 5.0 5.2

0.9
3.5
3.2
4.0
2.0

0.0 2.0 4.0 6.0 April May June July August September

(%)

+0.4% +0.4%

2Q FY2008

+2.0% +2.0% +2.0% +2.0%

Snow damage etc conservatively included 1H FY2006 1H FY2007 1Q FY2008 2Q FY2008

SLIDE 10

1. Revenue Base (2)-1 Au
1. Revenue Base (2)-1 Auto Insurance (Overseas)

to Insurance (Overseas)

6

Direct Underwriting (11 countries) Fronting (6 countries)

F&I Bu F&I Busi siness ss Local Gross Premiu Local Gross Premium Insu suran rance e Penetration Rate t netration Rate to Toyota’s New Car Sales yota’s New Car Sales

Co

Continuous premium gro ntinuous premium growth in co th in counties unties and area and areas w s where Aioi carries out F&I busi ere Aioi carries out F&I business activitie ness activities due to a increa due to a increasing ing insurance penetra insurance penetration ra n rate. te.

Sales of a

Sales of auto-rela to-related i ed insurance prod surance products ucts, such a , such as extended wa extended warran rranty in ty insurance, rance, and credi and credit l life in insurance wil surance will be be expanded, expanded, and insurance penetration rate and insurance penetration rate wil will be incr be increa ease sed by utilizing F&I busine d by utilizing F&I business mode ss model. l. France France Norway Norway Ital Italy Fi Finland nland Denmark Denmark Ru Russia UK UK Spa Spain Germ Germany any Taiwan Taiwan Au Austral ralia America America (Hawa Hawaii) ii) New Zeala New Zealand Indone Indonesi sia China China Hong Kong Hong Kong

13 13.2% 10 10.9% 12 12.8% 8% 14 14.7% 13 13.6% 6% 11 11.7% 7%

9.0% 11.0% 13.0% 15.0% FY2006 FY2007 FY2008 Plan

Fu Full Y Year Fi First H Half

Thail Thailand nd

26.3 31.8 38.0 12.5 17.7 19.3 5 10 15 20 25 30 35 40 FY2006 FY2007 FY2008 Plan

Fu Full Y Year Fi First H Half

(Billions of Yen)

SLIDE 11

7

Europe Europe

F&I bu F&I business mo siness model i del is wel well i l impl plemented i emented in dealers. dealers. F&I bu F&I business mo siness model i del is wel well i l impl plemented i emented in dealers. dealers.

Strengthen sales support of insurance products to

dealers (Europe)

Supply with the extended range of auto insurance

products (UK, Germany)

Retain favorable customers by offering them

risk segmented rate products (UK, Germany)

Strengthen development of dealer channel (Spain)

Asia Asia & Aust Australia ralia

F&I bu F&I business mo siness model being spre del being spread into de ad into dealers. alers. F&I bu F&I business mo siness model being spre del being spread into de ad into dealers. alers.

Strengthen development of dealer channel by F&I

business model (Australia, Thai)

Increase auto insurance penetration rate for new car

sales by strengthening supervision of dealers (Australia)

Expand favorable contracts by reviewing risk

segmented rates (Australia)

Raise renewal rate

with brokers’ support (Thai) Gross Premiums Written in Eur

ss Premiums Written in Europe
pe

Gross Premiums Written

ss Premiums Written in A

in Asia & Au ia & Australia stralia

14.9 13.7 22.1% 19.6% 10 12 14 16 18 20 1H FY2007 1H FY2008

10.0%
5.0%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

Gross Premiums Written Penetration Ratio (Billions of Yen) 4.2 3.9 9.2% 9.8% 2 4 6 8 10 1H FY2007 1H FY2008

10.0%
5.0%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% Gross Premiuma Written Penetration Ratio (Billions of Yen)

1. Revenue Base (2)-2 Au
1. Revenue Base (2)-2 Auto Insurance (Overseas)

to Insurance (Overseas)

SLIDE 12

8

Market share of long-term

Market share of long-term fire i fire insurance wa rance was grea s greatl tly y increa increased ed by by tak taking adv ng advant ntag age of the strengt e of the strength of the

f the

ho housing industr using industry.

Aim to increa

Aim to increase fire i se fire insuranc rance market share e market share co continuo ntinuously usly by offering compe by offering competitive prod titive products and ser ucts and services that fi ices that fit t customers’ ustomers’ needs needs

27.9 29.2 7.8 9.0 9.6 4.0 3.9 4.1 27.8

10 20 30 40 50 1H FY2006 1H FY2007 1H FY2008

Long-Term Fire Housing Channel Rental Channel

(Billions of Yen)

Sale

les g grow

wth

th w was ke s kept pt de desp spit ite severe ma e severe market condit ket conditions ions by tak by taking a ng advant dvantage of age of the strength he strength of the h

f the housin

using industry g industry and th d the ren e rental hous tal house e ind indust stry ch ry channel, and by offering annel, and by offering com compet etitiv ively y priced spe priced special products al products and ori and original inal services. services.

Lo Long-Term Fire Insu erm Fire Insura rance nce Lo Long-Term Fire Insu erm Fire Insura rance nce Co Continuo ntinuous Reve us Revenue Ba nue Base se Co Continuo ntinuous Reve us Revenue Ba nue Base se

Re-strength

Re-strengthen n es establ tablish ishment of ent of ne new housin w housing indu g industr stry ch channel. annel.

Note: Based on sales performance.

8. 8.9 11. 11.4 10. 10.4 14. 14.9 (+4.5P)

5.0 8.0 11.0 14.0 FY2001 FY2003 FY2005 FY2007

(%) (+2.5P) Dwelling Houses Business All Fire Insurance

139 260 54 261 200 272

100 200 300 400 500 1H FY2006 1H FY2007 1H FY2008

Housing Rental (Number)

1H FY2008

New agencies in the Housing Industry

1. Revenue Base (
1. Revenue Base (3) Long-Ter

) Long-Term Fir m Fire Insurance e Insurance

Market Sh Market Share ( are (Base ased on

n th

the Japan Japan’s s top top 9 no non-lif n-life ins insurance nce co companie anies)

SLIDE 13

9

Favo Favorable cro rable cross-selling sales by la ss-selling sales by launching o unching original insurance prod iginal insurance products fo ucts for third r third sector insurance, tor insurance, fire insurance, an fire insurance, and li d life ins fe insurance rance Favo Favorable cro rable cross-selling sales by la ss-selling sales by launching o unching original insurance prod iginal insurance products fo ucts for third r third sector insurance, tor insurance, fire insurance, an fire insurance, and li d life ins fe insurance rance

*1 Based on sales performance *2 Number of eligible policies for auto insurance discount divided by number of personal line auto insurance policyholders *3 Number of personal insurance in force divided personal line auto insurance policyholders

Numbe Number

f
f

Auto P Auto Policy Holders Holders 4.6 M 6 Millio illion n Strong app Strong appeal of al of advan advanced med ed medical cal expenses expenses cover cover

Increased

ncreased mult ltip iplicat cation rat ratio f io for dai r daily y hosp hospitali italization insur ation insurance nce paymen yments ts fo for r advan advanced med ed medical tre l treatment tment

Dire

irect pay t payment ent of advanced m

f advanced medical

cal exp expens nses es to to h hospit spitals s

Compet
mpetitive income

ve income secu curit rity insu insuran rance prem remium um, , especially for non-smok especially for non-smokers ers

New sp

w special ecial ex extens tension t n to cov cover loss r loss of earnings earnings for for thre hree m majo jor dis r diseases ases

Third Sector Insuranc Third Sector Insurance e Third Sector Insuranc Third Sector Insurance e Fire Insurance Fire Insurance Fire Insurance Fire Insurance Life Insuran Life Insurance Life Insuran Life Insurance

Easy-t sy-to-understand products

-understand products
Simple produ

imple product system ct system

Custom

ustomer oriented sales r oriented sales tools, such tools, such as as brochu

chure

re an and lea leaflet

2.1 1.3 2.1 2.1 4.4 3.0 2.9 4.5 8.7 9.5 10.2 10.7 0.0 2.0 4.0 6.0 8.0 10.0 12.0 FY2005 FY2006 FY2007 1H FY2008

(%) Cross-Selling Sales

Home Comprehensive *2 Live Lead (Health Comprehensive) *2 Life Insurance *3

1. Revenue Base
1. Revenue Base

(4)-1 Cross Selling – (4)-1 Cross Selling – Personal Insurance ersonal Insurance

SLIDE 14

10 Dome Domestic tic Dome Domestic tic

Cross-sell

Cross-selling sa ng sales growth les growth has been has been increasing d increasing due to the e to the fo following characteristic llowing characteristic produc products. ts.

Note: Based on sales performance.

Traders C Traders Comprehensi

mprehensive

ve General Liab General Liabilit ility Comprehensive y Comprehensive Con Constr tructi uction Compre

n Comprehensive

ensive Trans ansportation Compr

rtation Comprehe

hensi nsive

14.4 6.4 8.6 13.0

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 FY2005 FY2006 FY2007 1H FY2008

(%)

Cross-selling sales fo

ross-selling sales for co r corporate busine rporate business increased s ss increased steadily domes eadily domestically. ically.

Aiming for sales g

iming for sales growth in the

wth in the co

corporate business m rporate business market through rket through offering attractive prod

ffering attractive products

ucts do domestically and s mestically and strengthening affinity bu rengthening affinity busi siness with Japan ness with Japanese se co companies overseas. mpanies overseas.

Ove Overseas Ove Overseas

Insurance sales to Japane

Insurance sales to Japanese se corporations in corporations in

vers
verseas

as increased increased steadily steadily

Business cooperation has

Business cooperation has been strengthened been strengthened domestica domestically a lly and overs d overseas by using Aioi’s as by using Aioi’s ne network in twork in 31 cities, 19 countries. 31 cities, 19 countries.

Insuranc

Insurance products for e products for employees of Japanese employees of Japanese compan companies were offered in ies were offered in Europe, Aioi’s ma Europe, Aioi’s main in market in overs market in overseas, and sa , and sales activities in the les activities in the U.S. are planned. U.S. are planned.

10.9 13.5 13.3 14.4 4.5 6.0 6.3 5.6

2 4 6 8 10 12 14 16 FY2005 FY2006 FY2007 FY2008 Plan

Full Y ll Year Fi First H Half

(Billions of Yen)

1. Revenue Base
1. Revenue Base

(4)-2 Cross Selling – (4)-2 Cross Selling – Corporate Business

rporate Business

Cross-Selling Ratio Cross-Selling Ratio

Gross Prem Gross Premiums ums Written Overseas Written Overseas

SLIDE 15

11

2. Profit Base (1) Insurance Business
2. Profit Base (1) Insurance Business

32.4 32.7 34.2 35.1 35.2 34.8 30.0 32.0 34.0 36.0 38.0 40.0 1H FY2006 1H FY2007 1H FY2008

(%)

Loss Ratio (E/I N Loss Ratio (E/I Net Loss Ratio) t Loss Ratio) Loss Ratio (E/I N Loss Ratio (E/I Net Loss Ratio) t Loss Ratio) Expe Expense Rati nse Ratio Expe Expense Rati nse Ratio

61.4 60.9 59.4 59.3 59.5 60.5 55.0 60.0 65.0 1H FY2006 1H FY2007 1H FY2008

(%)

Auto Total

Maintaining low loss ratio advantage Maintaining low loss ratio advantage

Strengthening claim se

engthening claim services and imp rvices and improving

ving

speed of early claim settl eed of early claim settlement an ement and customer d customer sa satisfa sfact ction.

A
Actualization o
f a

a s stable low loss ratio able low loss ratio through underwriting through underwriting and l and loss p ss prevention evention activities. activities. Accele Accelerating cos rating cost redu reduction by st ction by stream reamlining lining

Cost reduction by abol
st reduction by abolish

ishment of ent of un unprofitable op profitable operations erations

Productivity improve

roductivity improvement by co ment by company- mpany- wide adminis wide administration im ration improvement activities provement activities

Review of ag

eview of agent co ent commission st mmission structure ructure

Underwriting profit was m

nderwriting profit was maintain intained as a stable profi ed as a stable profit base d base due to a e to achieving a low loss rat hieving a low loss ratio.

.
Activities to imp

ctivities to improve futu

ve future productivi

re productivity to further strengthen ty to further strengthen a profit base. a profit base.

Excluding CALI.

SLIDE 16

12

2. Profit Base (2) Investment Strategy
2. Profit Base (2) Investment Strategy

FY2008 Investment/Risk FY2008 Investment/Risk Management Management Policy

Secure profit stability as top priority due to

uncertain investment market environment

Improve investment portfolio by risk

reduction and other measures

Strengthen risk management system

Activities Activities

Ongoing Investment in yen based-interest rate assets (bonds and loans)

to control yen based-interest rate risk of insurance liabilities from the view point of ALM

Control risk of alternative investments by hedge fund reduction and
ther measures
Maintain actions to review the portfolio of strategic securities
Respond flexibly to the recent financial market conditions
Strengthen warning function and check risk nature of alternative

investments

400.3 303.6 270.8 259.9 257.4 251.8 248.4 100 200 300 400 500 FY2002 FY2004 FY2006 1H FY2008

(Billions of Yen)

Strategic Security Balance (Based on Cost) 70.6 64.0 56.0

10 20 30 40 50 60 70 80 FY2006 FY2007 1H FY2008

Hedge Fund Balance Credit Derivative Balance

Fo For Risk Reduction r Risk Reduction Fo For Risk Reduction r Risk Reduction

33 19 9 9 4 16 6 5

Domestic Bond Domestic Security Foreign Bond Foreign Security Other Security Loan Fixed Asset Short-term Investment

In Investmen stment Por Portfo folio as of September

as of September 30, 20

30, 2008 08

Pro Profit Sta Stability ility Risk Re k Reduction duction Ris Risk Manage k Management nt Sys System Im Improvem provemen ent

(%)

(Billions of Yen)

160.7 73.7 72.4 29.0 28.6 25.8 12.7 5.2 99.1 50 100 150 200 250 300 FY2006 FY2007 1H FY2008

Other Corporate CDO ABS-CDO

115.1 103.5 288.9 (Billions of Yen)

SLIDE 17

13

2. Profit Base (3) Group Co
2. Profit Base (3) Group Companies’

mpanies’ Business (Aioi Life) Business (Aioi Life)

Num

Number of new cont er of new contract racts ha s has b s been ex en expanded due to sale panded due to sales channel i s channel improv mprovement and compe ement and competi titi tive new products. ve new products.

Pr

Prof

fit

itabilit ability of

f Aioi Lif

Aioi Life inc increased eased due to b due to business o siness opera eration streamlining tion streamlining to i to improve corpora mprove corporate value in the mi te value in the mid- d- and long-term and to contri and long-term and to contribute to conso bute to consoli lida dated profi ted profit. t.

Raise op

Raise operating erating rate in rate in cl close

se

coordinati rdination and and co cooperati

peration

with ith non-

n-lif

life e insurance insurance channe channels and l ls and life fe in insura ranc nce ma e mana nagers rs

Streng

Strengthen the grow then the growing m ing mult lti-br i-branch profess anch professional

nal agenci

agencies es

Launch

unch com compet etitive prod e products, ucts, such as P such as Prem emium ium W, W, an and J Just O One W e W

Expansion of In-Fo Expansion of In-Force Co ce Contract ntracts Expansion of In-Fo Expansion of In-Force Co ce Contract ntracts Enhancement of Profita Enhancement of Profitability ility Enhancement of Profita Enhancement of Profitability ility

New Con New Contacts Increase ts Increase New Con New Contacts Increase ts Increase In-Fo

Force Cont

ce Contracts racts Increase Increase In-Fo

Force Cont

ce Contracts racts Increase Increase

Improv

rove cancel cancellat lation and lapse rati

n and lapse ratios

Expense Profit & Lo Expense Profit & Loss Improvement ss Improvement Expense Profit & Lo Expense Profit & Loss Improvement ss Improvement Invest vestment Profit & Los ment Profit & Loss Expansion s Expansion Invest vestment Profit & Los ment Profit & Loss Expansion s Expansion

Secure

ecure inv investm stment nt profit profit based on A based on ALM operati M operation

Streng

Strengthen profi then profit managem nagement by produ by products, ch ts, channels, annels, an and ar area eas

Streamline b

Streamline busi siness oper ness operation ation a.

a. De

Deve velopment ent of agen

f agencies’

cies’ direct p irect processing essing sys system em b.

b. Underwrit

Underwriting-related ated system system funct function

n im

improv provement ent to s stre ream amline underwrit line underwritin ing oper g operat ation ion

Change Mortality Profit & Loss 3.6 5.0 1.4 Expense Profit & Loss

0.6
1.0
0.3

Investment Profit & Loss 0.1 0.3 0.1 1H FY2007 1H FY2008 6,233.4 6,749.9 7,053.8 69.9 68.4 64.2 5,000 5,500 6,000 6,500 7,000 7,500 8,000 FY2006 FY2007 1H FY2008 30 40 50 60 70

The Amount of Insurance in Force Annualized Amount (Billions of Yen) (Billions of Yen)

Profit and Profit and Loss Loss by Resources by Resources

SLIDE 18

14

AMaGIC ha

AMaGIC has comple s completed development of strategic infr ted development of strategic infrastr tructures to uctures to expand F&I bu expand F&I busi siness in Eur ness in Europe, pe, and starte and started new bu d new busi siness o ness opera peration tions in Ita in Italy an y and Spa d Spain in 200 in in 2007. It will conc

7. It will concentra

entrate management e management resources on action plans u sources on action plans using underw ing underwri riti ting ex ng experienc perience to become a profitab e to become a profitable opera le operation. ion.

UK UK Germany Germany Fr Fran ance ce Norway Norway Oth Others rs Net In Net Income for come for 1H F H FY20 2008 08 （local local financi financial accountin l accounting basis g basis)

2.8
1.6
1.0
1.4
3.0
2.5
2.0
1.5
1.0
0.5

0.0 FY2007 FY2008 Plan

(Billions of Yen) Full Year First Half Full Year First Half

Reta

Retain e in exist isting favorabl ng favorable custom customers ers an and ta d tariff riff revision revision b based ased on

n

actual ris tual risks

Im

Improve prove non non-life fe insurance se insurance serv rvices by sharing h ices by sharing head off ad office’s ce’s kn know

w ho

how w of

f rep

repair air cost cost redu reduction ction

Im

Improve prove bal balance by nce by increasing increasing prem premiu ium rat rate

Loss

ss rati ratio i

improv

provem ement activ ent activities, es, su such ch as as repair repair cost reduction, by cost reduction, by clai claim s services rvices im improv provem emen ent

Im

Improve prove renewa renewal rati l ratio

of
f favorable p

vorable policies cies by bu by business a siness activities done at ctivities done at in- in-house cal

use call ce

center nter

Increase favorabl

Increase favorable custo e customers offe ers offering th ring them em attracti attractive ve prem premiu iums based on based on a a rev revised ris d risk rat rating ng

In

Increase produ rease productivit ctivity by by sale les ex s expansio pansion

Start repair

Start repair cost reduction a cost reduction activit vities es

Increase th

Increase the number of auto number of auto insurance insurance contr contracts with cts with low low loss ratio (Italy) loss ratio (Italy)

Underwrite b

Underwrite busin usiness ss focu focused on sed on cust custom

mers w

ers with th low loss loss rat ratio ( ( Europe) Europe)

2. Profit Base (3) Group
2. Profit Base (3) Group Companies’

Companies’ Business (AMaGIC) Business (AMaGIC)

SLIDE 19

15

Aioi Insurance ha

Aioi Insurance has forme s formed a st d a strategic rategic business allia business alliance with So with South Ko uth Korea Lo rea Lotte Group, a lea tte Group, a leading group in South ing group in South Korea, and ha Korea, and has inves s invested in Lot ed in Lotte te Insurance to develop long-term busi Insurance to develop long-term busine ness rela ss relation tionship with the gr ship with the group.

up.
The total a

The total amount of in

unt of investment i

vestment in Lotte Ins n Lotte Insurance is 9.9% sha urance is 9.9% shares es

,

39.2 b .2 billion won (3.0 b llion won (3.0 billion yen equiva llion yen equivalent) lent) Further Further investment is planned fo investment is planned for increasi r increasing conso g consolida dated profi ted profit. t.

3. Fu
3. Furth

rther Devel er Develop

pmen

ent of th t of the Basis for Growth e Basis for Growth

Shoppers Shoppers Card Users Card Users Employees Employees

Japan panese Com se Compan anies ies in Korea & Ov in Korea & Overs erseas eas

Lotte Lotte Co Companie mpanies Japane nese se Comp Companies anies

Aioi Insu Aioi Insurance rance

Find New Ma Find New Marke rket with Lott th Lotte G e Group

up

Product Product Development Development Know Ho Know How Re Reinsurance insurance Know Ho Know How Cl Claim Services aim Services Know Ho Know How Ri Risk sk Ma Mana nagement gement Know Ho Know How Overseas Overseas Network twork

Financial Cont Financial Contribut ribution

n

Di Divi vide dend Di Dist stri ributi tion Acc Accepted R Reinsura uranc nce Know How Know How Sharing ring Personnel Ex Personnel Excha change ge

Exist isting Cha Channels nels

<T <Tar arget> get> Be Be in in Top Top 5 o 5 of the the In Industry

Marke Market Exist isting Cha Channels nels IT Infra IT Infrastructure tructure Gr Grou

up S

Sales P Powe wer Lotte Bran Lotte Brand

Business Expansion of Lotte In Business Expansion of Lotte Insurance in surance in the Lotte Mark the Lotte Market et

Lotte Group Lotte Group Lotte C Lotte Card rd Lotte Department Lotte Department

Sou South Korea h Korea Lott Lotte Group is e Group is a a leadin leading g group

up in

in South K th Korea rea and h and has a as about 50 bout 50 group com

up companies

anies includ includin ing de g departm partment stores, stores, ho hotels ls, and o and other com her compani panies s in in various f various fiel elds, and em and employs m s more than re than 53 53,000 ,000 p peop

ple.

Lotte Insurance Lotte Insurance (From March 20 (From March 2008) Lotte Insurance Lotte Insurance (After several years) (After several years)

SLIDE 20

1,089.9 1,156.9 1,070.0 1,060.0 Direct Net Premiums Written 868.9 871.5 847.0 858.0 Life Insurance Premiums 67.7 72.0 75.0 77.0 27.2

8.6

4.5 25.0 16.1

3.1

5.0 14.0 851.2 851.8 825.0 835.0 Direct Net Premiums Written (CALI excluded) 701.4 702.3 701.8 712.0 1.0 10.2 17.5 12.5 35.0 0.0

5.8

20.4 29.8 4.4 7.0 28.0 18.8 7.1 6.0 17.0 10 Yen 10 Yen 10 Yen 10 Yen Various Ratios Net Premium Growth 2.0% 0.1%

3.2%
2.0%

Net Loss Ratio 62.4% 62.2% 64.8% 65.1% Net Expense Ratio 32.7% 33.3% 34.6% 34.2% Various Ratio excluding CALI Net Premium Growth 2.7% 0.1%

0.1%

1.4% Net Loss Ratio 60.4% 60.1% 60.3% 60.7% Net Expense Ratio 35.0% 35.7% 35.6% 35.0% 845.6 786.6 1,026.0 1,026.0 Value of Policies in Force 6,233.4 6,749.9 7,514.0 7,514.0 Individual Insurance and Pension 4,657.0 4,907.4 5,446.0 5,446.0 1.9

5.6

4.0 3.6 46.4 51.7 59.5 59.5

FY2008 Original Plan FY2008 Original Plan

Ordinary Income Net Income

FY2008 Revised Plan

Operating Income

FY2006 FY2007

Consol

lidat

ated ed

Ordinary Profit Ordinary income Investment Income Underwriting Profit Net Income Value of New Individual Insurance and Individual Pension Contracts Overseas Direct Premiums (Gross)

FY2006 FY2008 Revised Plan FY2007

Dividend per Share

Ov Overse seas Ai Aioi In Insu surance Ai Aioi Li Life

Direct Net Premiums Written

16

4. FY2008 Business Plan
4. FY2008 Business Plan

<Note> Unit: Billions of Yen All amounts are truncated. All figures rounded to one decimal place. Net loss ratios include loss adjustment expense. Value of policies in force excludes group pension. All figures are calculated based on the rate on December 31, 2007.

SLIDE 21

Contact Address Contact Address

1-28-1, Ebisu, Shib 1-28-1, Ebisu, Shibuya-ku, Tokyo 150-8488 uya-ku, Tokyo 150-8488 TE TEL: +81- L: +81- 3- 3- 5789- 5789- 7135 7135 E-mail: k E-mail: k-ad adachi@ioi-sonp achi@ioi-sonpo.co.jp .co.jp

Aioi Insurance Company, Limited Aioi Insurance Company, Limited

Corporate Communication Department Corporate Communication Department Investor Relations Section Investor Relations Section

Thi This prese presentation contains sta tation contains statement ements referring to our future s referring to our future performances and forecasts, performances and forecasts, which enta ich entail certa il certain a n and uncert d uncertain ri n risks an sks and un d uncertai certaintie

nties. Plea
s. Please note that our f

se note that our future ture performanc performance, e, corporate stra corporate strategi tegies and ma es and manageme nagement policie nt policies might s might var vary due to c due to changes in anges in future condi ture condition tions. .

SLIDE 22

I. Financial Data

1 FY2008 Interim Financial Summary …………… P1 2 Premiums & Claims by Class …………… P2 3 Inwards Reinsurance Premiums & Claims by Class …………… P3 4 Breakdown of Net Operating Expenses …………… P3 5 Catastrophe Reserves …………… P4 6 Underwriting Reserve …………… P4 7 Claims Reserve …………… P4 8 Total Assets and Managed Assets …………… P5 9 Solvency Margin Ratio …………… P5 10 Asset Evaluation (Loans) …………… P6 11 Debts Subject to Risk Control …………… P6 12 Shareholdings by Sector …………… P6 13 Asset Management Profit & Loss …………… P7 14 Investment in Securities …………… P7 15 Reduction in Strategic Shareholdings …………… P8 16 Fixed Asset Impairment …………… P8 17 Impact of Natural Disasters …………… P8 18 Aioi Life …………… P9

II. Operating Result Data

1 Operating Premiums …………… P10 2 Auto Insurance …………… P11 3 Platform Products …………… P11 4 Long-Term Fire Products …………… P12 5 Aioi Life …………… P12

December 1, 2008

Aioi Insurance Co., Ltd

IR Meeting Reference Data IR Meeting Reference Data

SLIDE 23

I. Financial Data
I. Financial Data
1. FY2008 Interim Financial Summary
1. FY2008 Interim Financial Summary

(1) Non-Consolidated Profit and Loss (1) Non-Consolidated Profit and Loss (Unit: 100 Million Yen, %) (Unit: 100 Million Yen)

1. Direct Premiums Written *1

4,444 4,316

128
2.9
2. Net Premiums Written *2

4,286 4,180

105
2.5
3. Net Claims Paid

2,346 2,396 49 2.1

4. Loss Adjustment Expenses

174 185 10 6.3

5. Net Operating Expenses

1,402 1,429 26 1.9 Operating Income 362 169

193
53.3
6. Increase in Claims Reserve

9

6
16
7. Increase in CAT Reserve

85 51

34

Underwriting Profit & Loss 58 54

4

Asset Management Profit & Loss 178 93

84

(of which interest/dividend income) 449 233

215

(of which gain/loss on sale of securities) 129 107

22

1H FY2007 1H FY2008 Change (of which valuation loss on securities) 44 56 12 5,685 5,372

312

(of which gain/loss on derivatives) *3

255
61

194 4,401 4,304

96

348 362 13 Ordinary Income 206 132

73

102 114 12 102 57

44

Extraordinary Profit & Loss *4 54

18
72

Net Income 177 65

111

Various Ratios (Unit: %) (2) Financial Conditions (Unit: 100 Million Yen) 0.4

2.5
2.9

1H FY2007 1H FY2008 Change 58.8 61.8 3.0 Total Asset 28,020 25,706

2,313

32.7 34.2 1.5 Equity Capital 6,016 3,791

2,225

91.5 95.9 4.4 Catastrophe Reserves 2,458 2,475 16 8.5 4.1

4.4

Solvency Margin Ratio 1,016.9% 811.7%

205.2%

Various Ratios (excluding CALI) (Unit: %) (3) Natural Disasters (Unit: 100 Million Yen) Net Premium Growth Ratio 0.5

0.5
1.0

Net Loss Ratio 56.3 57.9 1.6 Claims Paid Claims Reserve Net Expense Ratio 35.1 35.2 0.1 Fire 10 10 3 7 Combined Ratio 91.4 93.1 1.7 Auto 18 18 13 5 8.6 6.9

1.7

Total 28 28 16 12 Note: Please refer to page 8 for the details. 1H FY2007 1H FY2008 U/W Profit Ratio Combined Ratio Net Expense Ratio Net Loss Ratio Note Direct Change Change % *1 CALI -119 (Decrease due to revision of rating structure and other reasons -122) *2 CALI -88 (Decrease due to revision of rating structure and other reasons -96) *3 Subprime related loss -70 (179 increased from FY2007) *4 In 1H FY2007, extraordinary profit 80 due to revision of retirement benefits and pension plan U/W Profit Ratio (Reference) Consolidated Financial Results (Reference) Consolidated Financial Results (Unit: 100 Million Yen) Net Income Ordinary Income Life Insurance Premiums Net Premiums Written Operating Income Net Net Premium Growth Ratio

P1 （Reference Data）

SLIDE 24

2. Premiums & Claims b
2. Premiums & Claims by Class

Class

Direct Premiums Written Direct Premiums Written (Unit: Million Yen, %) 57,236 58,473 117,476 121,800 2,744 2,939 5,551 5,900 26,307 25,458 50,583 50,000 234,748 231,117 466,731 457,900 85,728 73,750 157,532 139,200 37,712 39,862 73,916 78,500 444,478 431,601 871,793 853,300 Net Premiums Written Net Premiums Written (Unit: Million Yen, %) 48,987 49,488 100,326 104,000 2,951 3,028 6,435 6,600 24,832 23,918 47,882 45,900 238,061 235,555 472,766 466,200 75,913 67,082 149,545 123,200 37,876 38,970 74,891 79,100 428,624 418,044 851,849 825,000 Net Claims Paid Net Claims Paid (Unit: Million Yen, %) Change % Change % Change % Change % 16,054 34.1

6.2

15,751 33.4

0.7

35,823 37.3

6.9

35,300 35.5

1.8

1,965 69.1 20.3 1,278 44.2

24.9

3,610 57.7 14.0 2,900 50.0

7.7

9,042 39.8 1.8 10,965 49.5 9.7 20,390 45.7 4.7 21,500 50.5 4.8 132,953 60.3 2.6 134,220 61.7 1.4 277,946 63.3 1.7 278,600 64.8 1.5 49,644 70.5

1.1

50,817 81.7 11.2 100,168 72.3 0.3 103,300 90.2 17.9 25,028 69.5

13.3

26,625 72.3 2.8 57,141 80.0

10.2

54,900 72.6

7.4

234,688 58.8

0.4

239,659 61.8 3.0 495,081 62.2

0.2

496,500 64.8 2.6 * Loss Ratio = (Net Claims Paid + Loss Adjustment Expenses) / Net Premiums Written x 100 P.A.

1.2
3.2

Change % Change % Fire

0.3

2.2 Change % Change % 1H FY2007 1H FY2008 FY2007 3.7

2.6

Marine 4.0 7.1 6.3 2.9 Auto

0.1
1.5
1.9
0.3

CALI 0.0

14.0
11.6
7.6

Other 0.5 5.7 6.2 2.8 Total

0.1
2.9
2.1
1.9

Change % Change % Change % Change % 1H FY2007 Marine

2.7
0.7

1.1 1.0 Fire

1.7

P.A.

1.6
3.7
4.1

Auto 0.4

1.1
1.4

0.1 Total 0.4

2.5

CALI

0.3
11.6

Other 2.1 2.9 5.6 4.6 Total Marine Fire CALI Loss Ratio* Other P.A. Auto Loss Ratio* Loss Ratio* Loss Ratio* 1H FY2007 1H FY2008 FY2007 FY2007 0.1

0.1

2.2 2.6 FY2008 Forecast FY2008 Forecast FY2008 Forecast 1H FY2008

3.2
17.6

2.6 3.7

1.2
2.2

P2 （Reference Data）

SLIDE 25

3. Inwards Reinsurance Premiums & Claims b
3. Inwards Reinsurance Premiums & Claims by Class

Class

Net Inwards Reinsurance Premiums by Class Net Inwards Reinsurance Premiums by Class (Unit: Million Yen, %) 5,439 5,582 9,509 993 1,127 2,364 227 253 740 6,089 7,112 11,543 55,771 42,972 110,569 4,160 2,978 8,384 72,682 60,026 143,112 Net Inwards Reinsurance Claims by Class Net Inwards Reinsurance Claims by Class (Unit: Million Yen, %) 1,712 31.5

23.0

1,105 19.8

11.7

4,781 50.3

16.3

1,125 113.3 38.9 623 55.3

58.0

2,210 93.5 33.0 170 74.9 5.5 568 224.4 149.5 322 43.6 3.0 3,568 58.6 1.6 3,662 51.5

7.1

7,973 69.1 5.8 49,644 89.0

1.3

50,817 118.3 29.3 100,168 90.6

0.3

5,650 135.8

74.6

6,485 217.8 82.0 17,543 209.2

39.5

61,871 85.1

8.0

63,263 105.4 20.3 132,999 92.9

4.0

* Loss Ratio = Net Inwards Reinsurance Claims / Net Inwards Reinsurance Premiums x 100

4. Breakdown of Net Operating Expenses
4. Breakdown of Net Operating Expenses

(Unit: Million Yen, %) FY2008 Forecast Change % % of Premiums Change % % of Premiums Change % % of Premiums Change % % of Premiums Personal Cost 44,771

0.2

10.4 45,930 2.6 11.0 89,197 0.0 10.5 92,100 3.3 11.2 Non-personal Cost 36,742 1.9 8.6 39,572 7.7 9.5 80,885 6.3 9.5 83,500 3.2 10.1 Tax & Other 5,713

2.7

1.3 5,683

0.5

1.4 9,498

2.7

1.1 9,500 0.0 1.2 Total 87,227 0.5 20.4 91,187 4.5 21.8 179,581 2.6 21.1 185,100 3.1 22.4 65,826 1.0 15.4 68,542 4.1 16.4 136,431 3.1 16.0 139,100 2.0 16.9 74,438 1.5 17.4 74,389

0.1

17.8 147,020 0.9 17.3 146,600

0.3

17.8 140,264 1.2 32.7 142,932 1.9 34.2 283,451 1.9 33.3 285,700 0.8 34.6 CALI

17.4

Other 1H FY2008

0.5
22.9

Loss Ratio* Loss Ratio* Change % Fire 0.9

15.3
28.4
9.5

Change % Total

0.1

FY2007 11.2

9.8

18.0 1H FY2007 0.4 Change % 1H FY2007 FY2007 1H FY2008 Change % Change % 13.5 Marine 3.8 P.A. Auto

1.9

Fire 1.2 2.6 1.0 16.8 20.0

17.4

Net Operating Expense Change % 1H FY2007 1H FY2008 FY2007 Loss Ratio* Marine Total P.A. Loss Adjustment Expenses & Operating and General Administrative Expense Operating and General Administrative Expense for Underwriting Commissions and Brokerage Auto CALI Other

P3 （Reference Data）

SLIDE 26

5. Catastrophe Reserves
5. Catastrophe Reserves

(Unit: Million Yen, %) Fire 85,873 89.3 89,902 91.3 93,769 96.5 7,896 3,867

3,867

Marine 4,069 68.9 4,215 65.5 4,344 71.7 275 128

128

P.A. 32,151 64.7 32,861 68.6 33,600 70.2 1,449 739 9 748 Auto 101,304 21.3 91,099 19.3 90,449 19.2

10,855
650

17,281 16,630 Other 22,451 29.6 24,302 32.5 25,335 32.5 2,884 1,032 891 1,923 Total 245,850 34.9 242,382 34.6 247,500 35.4 1,649 5,117 18,181 23,298 * Reserve Ratio = Amount of Catastrophe Reserve / Net Premiums Written (Excl. Dwelling EQ / CALI) × 100 Note: Reserve ratios for first halfs are calculated after net premiums written (excluding dwelling EQ / CALI) halved.

6. Underwriting Reserve
6. Underwriting Reserve

(Unit: Million Yen) Change from 1H FY2007 Change from FY2007 Fire 16,761 9,649 Marine 477

20

P.A.

12,644
3,401

Auto

14,562
2,158

CALI 2,428

3,355

Other 6,188 6,040 Total

1,351

6,753

7. Claims Reserve
7. Claims Reserve

(Unit: Million Yen)

f which IBNR
f which IBNR
f which IBNR
f which IBNR
f which IBNR

Fire 27,581 9,803 23,193 8,041 23,997 8,238

3,583
1,565

804 196 Marine 6,432 3,356 4,838 2,498 4,878 2,603

1,554
752

39 104 P.A. 13,699 4,466 14,987 5,299 15,458 5,558 1,758 1,092 470 259 Auto 183,062 16,261 182,201 17,624 182,409 17,293

652

1,031 207

331

CALI 35,240

36,586
35,577
337
1,008
Other

62,794 36,369 52,865 26,851 51,662 25,064

11,131
11,305
1,202
1,787

Total 328,809 70,258 314,673 60,316 313,984 58,758

14,825
11,499
688
1,557

287,679 1H FY2007 124,825 1,691,845 FY2007 124,677 1,699,951 Change from FY2007 130,866 281,895 1H FY2007 530,810 537,922 7,537 499,555 Change from FY2007 Reserve Ratio* Change from 1H FY2007 Change from 1H FY2007 1H FY2008 547,571 1,698,599 284,324 1H FY2008 7,039 Transfer Draw-down 1H FY2008 FY2007 1H FY2007 FY2007 Reserve Ratio* Reserve Ratio* 246,729 7,516 496,154 232,167 508,798 234,325 P4 （Reference Data）

SLIDE 27

8. Total Assets and Managed Assets
8. Total Assets and Managed Assets

(Unit: Million Yen) Change from 1H FY2007 Change from FY2007 70,663 77,051 61,762

8,900
15,288

10,000 20,000 20,000 10,000

Receivables under Resale Agreements
19,980

19,980 19,980 24,556 29,736 22,368

2,188
7,367

50 2,222 2,312 2,262 89 1,951,673 1,678,821 1,572,241

379,432
106,580

757,401 733,105 695,448

61,953
37,657

630,386 468,033 409,862

220,523
58,171

441,043 394,465 374,125

66,917
20,339

122,842 83,216 92,804

30,037

9,587 340,849 340,228 345,567 4,717 5,338 152,913 150,335 149,872

3,041
462

5,372 4,716 5,635 262 919 213,903 223,543 223,459 9,555

84

31,308 111,236 146,158 114,849 34,921 3,000 3,000 3,000

2,271
2,295
1,698

573 596 2,802,021 2,638,595 2,570,659

231,361
67,936

2,537,699 2,285,812 2,184,063

353,635
101,748

(Reference) 591,514 573,258 563,661

27,852
9,596
9. Solvency Margin Ratio
9. Solvency Margin Ratio

(Unit: Million Yen) Change from 1H FY2007 Change from FY2007 (A) Total Solvency Margin 1,077,241 841,780 774,831

302,409
66,949

350,592 336,339 339,272

11,320

2,932 6,630 7,249 7,543 912 293

517

775 775 258 284,984 282,396 288,601 3,617 6,205 236 343 222

13
121

348,407 137,215 50,931

297,475
86,283

6,645 6,158 14,577 7,932 8,418

22,530
24,280
24,259
1,729

21 102,273 95,841 97,166

5,107

1,324 (B) Total Risk 211,856 195,159 190,908

20,947
4,251

47,083 45,935 45,928

1,155
7
2,486

2,446 2,425

60
20

111,894 93,869 88,501

23,393
5,368

4,894 4,523 4,429

465
94

83,268 83,927 84,610 1,342 683 Solvency Margin Ratio [(A) / {(B) × 1/2}] × 100 1,016.9% 862.6% 811.7%

205.2%
50.9%

Capital Stock, Funds, and Other 1H FY2007 FY2007 Investment in Securities Cash and Deposits Call Loans Monetary Receivables Bought Money Held in Trust Tangible Fixed Assets Equity Securities Foreign Securities Other Securities Total Intangible Fixed Assets Other Assets Deferred Tax Assets 1H FY2008 1H FY2008 Bonds Loans Long-Lived Assets 1H FY2007 FY2007 Customers' Liabilities for Acceptances and Guarantees Managed Assets Allowance for Doubtful Accounts Price Fluctuation Reserve Contingency Fund CAT Reserve including Earthquake Insurance Allowance for Bad Debt 90% of Net Unrealized Gain on Available-for-Sale 85% of Unrealized Gain and Loss on Land Deductions Other Business Management Risk (R5) Catastrophe Risk (R6) General Insurance Risk (R1) Third Sector Insurance Risk (R2) Projected Interest Risk (R3) Asset Management Risk (R4)

R R R R R R

6 5 2 4 3 2 2 1

) ( ) ( + + + + +

P5 （Reference Data）

SLIDE 28

10. Asset Evaluation (Loans)
10. Asset Evaluation (Loans)

(Unit: Million Yen, %) Change from FY2007 Proportion Proportion Proportion Proportion Proportion Total 340,849 100.0 340,228 100.0 345,567 100.0 4,717

5,338
329,762

96.7 329,553 96.9 340,835 98.6 11,073 1.9 11,282 1.7 11,087 3.3 10,675 3.1 4,731 1.4

6,355
1.9
5,943
1.7

Class II 10,043 2.9 9,674 2.8 4,193 1.2

5,849
1.7
5,480
1.6

Class III 516 0.2 448 0.1 362 0.1

154
0.1
86
Class IV

527 0.2 552 0.2 176 0.1

351
0.1
376
0.1
11. Debts Sub
11. Debts Subject to Risk Control

ect to Risk Control

(Unit: Million Yen, %)

12. Shareholdings by Sector
12. Shareholdings by Sector

(Unit: Million Yen, %) Change from FY2007 Proportion Proportion Proportion Proportion Proportion Finance & Insurance 112,950 17.9 100,482 21.5 87,070 21.2

25,879

3.3

13,411
0.3

Transport Equipment 99,928 15.9 73,154 15.6 64,496 15.7

35,431
0.2
8,658

0.1 Commerce 68,986 10.9 55,030 11.8 47,395 11.6

21,590

0.7

7,634
0.2

Electrical Machinery 65,441 10.4 43,914 9.4 42,084 10.3

23,356
0.1
1,829

0.9 Chemicals 72,841 11.6 47,075 10.1 35,590 8.7

37,251
2.9
11,485
1.4

Construction 33,873 5.4 26,905 5.7 23,510 5.7

10,363

0.3

3,395

0.0 Land Transport 28,618 4.5 18,882 4.0 18,215 4.4

10,402
0.1
667

0.4 Machinery 13,665 2.2 10,779 2.3 14,045 3.4 379 1.2 3,265 1.1 Real Estate 27,524 4.4 18,314 3.9 13,327 3.3

14,197
1.1
4,987
0.6

Oil & Coal Products 14,311 2.3 12,968 2.8 12,097 3.0

2,213

0.7

870

0.2 Other 92,244 14.5 60,525 12.9 52,028 12.7

40,216
1.8
8,496
0.2

Total 630,386 100.0 468,033 100.0 409,862 100.0

220,523
58,171
1H FY2007

FY2007 1H FY2008 Change from 1H FY2007 Change from 1H FY2007 Total Non-Classified Assets Total Classified Assets (B) Loans Loans to Borrowers in Legal Bankruptcy Loans in Default Loans in Default for 3 Months or More Restructured Loans (A) Total Debt Subject to Risk Control 3,293 3,055

80
219
450

4,795 4,349 477 470

665

340,849 340,228 5,338 791 586 320 239 230

9

115 1H FY2007 FY2007 1H FY2008 1H FY2007 FY2007 1.3 1.4 As a Proportion of Loans (A) / (B) 1H FY2008 Change from FY2007 4,129 26 2,974 Change from 1H FY2007

443
319
0.1

907 221 345,567 1.2

18

4,717

0.2

P6 （Reference Data）

SLIDE 29

13. Asset Management Profit & Loss
13. Asset Management Profit & Loss

(Reference) Breakdown of Interest and Dividend Income (Reference) Breakdown of Interest and Dividend Income (Unit: Million Yen) (Unit: Million Yen) Change Interest and dividend income 44,914 23,315

21,599

81,864 38,328 16,532 68,671 Gain on sale of investment in securities 12,979 10,709

2,270

39,086 Bonds 5,530 5,643 11,204 Valuation loss of investment in securities

4,440
5,665
1,224
12,496

Shares 5,402 5,093 8,858 Gain & Loss on derivatives*

25,597
6,166

19,431

84,774

Foreign Securities 21,732 5,291 35,771 Other profit/loss on assets managed 574

1,693
2,267
1,560

Other 5,663 504 12,837 3,338 3,343 6,735

10,627
11,165
538
22,106

Land / Buildings 2,557 2,571 5,121 690 868 1,335 17,802 9,334

8,468

13 44,914 23,315 81,864 * Evaluation profit and loss of derivative transaction at the end of the period are included.

14. Investment in Securities
14. Investment in Securities

(1) Unrealized Profit/Loss on Securities (1) Unrealized Profit/Loss on Securities (Unit: Million Yen) Change from 1H FY2007 692,579 695,240 2,661

6,176

233,961 345,994 112,032

208,798

390,478 350,210

40,267
77,313

121,939 104,206

17,733
38,137

1,438,959 1,495,651 56,692

330,426

748,071 756,909 8,838 244,792 565,624 320,831 379,749 416,794 37,045 115,933 136,337 20,404 1,488,546 1,875,666 387,119 722,111 732,757 10,645 238,707 403,880 165,173 386,710 370,579

16,131

108,395 101,339

7,056

1,455,924 1,608,556 152,631 Note: 1. Available-for-sale securities, which are fairly valued on the market, are listed in the above tables.

2. Monetary receivables bought is included in other.

(2) Gain / Loss on Sale of Securities (2) Gain / Loss on Sale of Securities (Unit: Million Yen) (3) Valuation Loss on Securities after Impairment (3) Valuation Loss on Securities after Impairment (Unit: Million Yen) Change Change 642 2,955 2,312 5,587 Bonds

1,031

6,777 5,745 9,833 Shares 4,429 4,163

265

8,463 9,951

541
10,492

15,576 Foreign Securities 11 1,032 1,020 3,421 1,354 1,517 163 8,089 Other

469

469 611 12,979 10,709

2,270

39,086 Total 4,440 5,665 1,224 12,496 Investment Income on Premiums for Maturity of Loan Other Total Insurance Bonds Shares Bonds Total Bonds Shares Foreign Securities FY2007 Bonds Shares Shares Total Foreign Securities Other Difference Other Difference Cost Fair Value Total 1H FY2008

24,136
10,677
95,938

FY2007 1H FY2008 Fair Value Cost 1H FY2007 FY2007 1H FY2007 1H FY2008 Refundable Portion of Long-Term and Other FY2007 1H FY2007 1H FY2008 Fair Value 1H FY2008 Difference FY2007 Securities Change from FY2007

7,984
53,140

1H FY2007 Cost Total 1H FY2007 Foreign Securities Other Foreign Securities Other Total

P7 （Reference Data）

SLIDE 30

15. Reduction in Strate
15. Reduction in Strategic Shareholdin

ic Shareholdings

16. Fixed Asset Impairment
16. Fixed Asset Impairment

(Unit: 100 Million Yen) (Unit: Million Yen)

Change

6 34 56

530 58

471

530

2,568 2,484 2,518

214 81

132

339 744 139

604

869

17. Impact of Natural Disasters
17. Impact of Natural Disasters

(Unit: 100 Million Yen)

Change

8 16 8 24 Fire

6 3

3

20

Auto

2 13 11 2

Other

2

10 12 2 2 18 28 10 26

1

Fire

1

Auto

Other
1

8 16 8 23

Fire

6 3

3

19

Auto

2 13 11 2

Other

2

10 12 2 2 18 28 10 25 2 13 11 2 16 15

1

23

Direct Insurance Total Reinsurance Total Claims Paid Claims Reserve Claims Reserve Claims Paid Claims Recovered Reserves Recovered Net

FY2007 FY2007

Net Impact Balance Reduction Total Draw-Down on CAT Reserves

1H FY2008 1H FY2007 FY2007 1H FY2007 1H FY2008 1H FY2008

Total Buildings Land

1H FY2007 P8 （Reference Data）

SLIDE 31

18. Aioi Life
18. Aioi Life

(Unit: 100 Million yen, %) Change Change % New Policy 3,445 4,637 1,191 34.6 8,015 Personal / Personal Pension 3,380 4,527 1,146 33.9 7,866 Group 65 110 45 69.1 149 Policies in Force 64,581 70,538 5,956 9.2 67,499 Personal / Personal Pension 47,397 50,809 3,412 7.2 49,074 Group 17,184 19,728 2,544 14.8 18,425 Premium and Other Income 430 459 28 6.6 899 Investment Income 31 36 5 16.8 65 Claims and Other Payment 141 156 15 10.8 304 Asset Management Expense 1

1
96.0

5 Total Assets 3,498 3,975 477 13.6 3,746 Solvency Margin Ratio 2,103.4 2,047.3

56.1

2,078.8 (Reference) Annualized Premiums New Policy 42 46 4 9.7 99 Policies in Force 657 699 42 6.4 684 1H FY2007 1H FY2008 FY2007

P9 （Reference Data）

SLIDE 32

II. Operating Result Data
II. Operating Result Data
1. Operating Premiums
1. Operating Premiums

(1) By Class (1) By Class (Unit: 100 Million yen, %) Change % Change Change % Change % Auto 2,367

0.7

2,322

46
1.9

4,653

0.9

CALI 809 0.2 596

212
26.3

1,634

1.4

Fire 557

0.1

575 18 3.2 1,144

3.1

P.A. 244 0.0 242

3
1.1

437

1.0

Marine 47 9.3 50 3 6.8 92 6.2 Other 364 2.0 384 20 5.4 676 3.8 Total 4,389

0.1

4,168

220
5.0

8,636

0.9

(2) By Channel (2) By Channel (Unit: 100 Million yen, %) Change % Change Change % Change % Professional Agents 1,496

1.5

1,459

38
2.5

2,908

2.1

Auto-Related Agents 891 0.9 803

87
9.8

1,765 0.2 Toyota Group 978 2.0 899

79
8.1

1,963 1.0 Toyota Gp Dealers 846 1.0 763

83
9.9

1,716 0.3 Toyota Gp Cos. 132 9.3 137 4 3.3 247 6.3 Other Dealers 124

4.0

104

20
16.0

247

4.8

Corporate Agents 417

0.1

428 11 2.7 938 0.2 Financial Institutions 125

5.5

121

4
2.8

254

4.8
/w bancassurance

11

39.9

7

5
40.7

20

45.3

Other 357 2.2 353

4
1.0

561

2.1

Total 4,389

0.1

4,168

220
5.0

8,636

0.9

(3) Gross Premiums Written in Overseas (3) Gross Premiums Written in Overseas (Unit: 100 Million yen, %) Change Change % Change % F&I 193 16 9.1 318 21.0 JIA and Other 84

13
13.0

199

0.9

Total 277 4 1.3 517 11.5 274 97 177 1H FY2007 1H FY2007 1H FY2007 FY2007 1H FY2008 FY2007 FY2007 1H FY2008 1H FY2008

P10 （Rerference Data）

SLIDE 33

2. Auto Insurance
2. Auto Insurance

(Unit: %) (1) Growth of Premiums/ Vehicle Numbers/ Unit Price (Premiums per Policy) (1) Growth of Premiums/ Vehicle Numbers/ Unit Price (Premiums per Policy) 1H FY2007 1H FY2008 FY2007 Premiums

0.7
1.9
0.9

Vehicles Numbers 0.3

0.5

0.1 Unit Price

1.0
1.4
1.0

(2) Fleet, Non Fleet Growth of Premiums/ Vehicle Numbers/ Unit price (Premiums per Policy) (2) Fleet, Non Fleet Growth of Premiums/ Vehicle Numbers/ Unit price (Premiums per Policy) (Unit: %) Premiums Increase Vehicle Increase Unit Price Increase Premiums Increase Vehicle Increase Unit Price Increase Premiums Increase Vehicle Increase Unit Price Increase Total

0.7

0.3

1.0
1.9
0.5
1.4
0.9

0.1

1.0

Fleet 3.7 1.8 1.9

1.4
5.3

3.9 3.0 0.7 2.3 Non-Fleet

1.2

0.0

1.2
2.0

0.4

2.4
1.4

0.0

1.4

(3) Switchover to "Top Run" Product (3) Switchover to "Top Run" Product (Unit: %) 1H FY2007 1H FY2008 FY2007 Total 56.8 57.6 54.4 New 42.6 48.4 42.8 Renewal 58.1 58.4 55.4 (4) Sales of Dedicated Toyota Market Products (4) Sales of Dedicated Toyota Market Products (Unit: 1,000 Policies, 100 Million Yen) Policies Premiums Policies Premiums Policies Premiums Convini Plan 23 24 24 24 49 50 Nagaraku Plan 17 14 20 16 36 29 3 8 4 9 9 20

3. Platform Products
3. Platform Products

(Unit: 1,000 Policies, 100 Million Yen) Policies Premiums Policies Premiums Policies Premiums 115 47 117 49 205 86 258 106 277 108 558 234 25 20 33 23 55 43 8 29 85 29 15 54 3 3 1 6 2 2 4 5 6 9 Note: Total policies and operating result basis. Transportation Comprehensive Construction Comprehensive Traders Comprehensive General Liability Comprehensive FY2007 Home Comprehensive Health Comprehensive (Live Lead) 1H FY2007 Lexus Owners' Auto Insurance Plan 1H FY2007 1H FY2008 1H FY2007 FY2007 1H FY2008 1H FY2008 FY2007 P11 （Reference Data）

SLIDE 34

4. Long-Term Fire Products
4. Long-Term Fire Products

(Unit: 1,000 Policies, 100 Million Yen) Policies Premiums Policies Premiums Policies Premiums 62 135 59 150 134 289

5. Aioi Life
5. Aioi Life

Sales of Main Products <Personal> (Policies) Launch Date FY2006 FY2007 1H FY2008 Cumulative (Since Launch) Jun 2004 3,133 －－ 25,827 Nov 2004 1,563 1,468 910 6,723 Apr 2005 383 362 79 1,354 Jun 2005 1,796 －－ 6,530 Oct 2005 981 921 380 2,735 Jun 2006 1,644 885 202 2,731 Oct 2006 2,017 3,813 410 6,240 Oct 2006 4,505 6,195 634 11,334 Apr 2007 － 111 31 142 Oct 2007 － 6,204 4,152 10,356 Dec 2007 － 312 271 583 Jun 2008 －－ 4,123 4,123 Jun 2008 －－ 1,334 1,334 (Reference) Variable Whole Life Insurance (Super Whole Life Premium and Carna included.) 30,880 34,122 20,249 113,321 <Group> (Number of Insureds) FY2006 FY2007 1H FY2008 Cumulative (Since Launch) 7,088 Kairos Just One α New Super Whole Life Premium 50,992 16,215 12,680 Premium W Just One W Interest-Sensitive Private Pension Insurance (Lum-Sum payment) Product Name (Launch Date) FY2007 1H FY2008 1H FY2007 Group credit life cover with cancer diagnosis benefit (Feb 2004) Group credit life cover with three major diseases benefit (Feb 2006) Group credit life cover with eight major diseases benefit (Aug 2007) My Home Comprehensive Product Name Dream One Carna Super Whole Life Premium Doru Monogatari Zutto Luck New Income Protection Insurance Just One Interest-Sensitive Private Pension Insurance (Saving-Type)

P12 （Reference Data）