[PDF] - Summary of Consolidated Business Results of Tokio Marine Holdings, PDF Document

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May 19, 2011

Summary of Consolidated Business Results of Tokio Marine Holdings, Inc. under Japanese GAAP for the Year Ended March 31, 2011

(URL: http://www.tokiomarinehd.com/) Representative: Shuzo Sumi President Contact: Shusuke Kasahara Scheduled date of ordinary general meeting of shareholders: June 27, 2011 Scheduled date for starting payment of dividends: June 28, 2011

1. Consolidated Business Results for the Year ended March 31, 2011 (April 1, 2010 to March 31, 2011)

(Notes) All amounts are truncated and all ratios are rounded (1) Consolidated Results of Operations ratios reflect changes from the previous fiscal year. Ordinary income Ordinary profit Net income million yen % million yen % million yen % Year ended March 31, 2011

37.8

Year ended March 31, 2010

(Note) Comprehensive income:

For the year ended March 31, 2011

196,554 million yen

For the year ended March 31, 2010 581,103 million yen Net income per share - Basic Net income per share - Diluted yen yen % % % Year ended March 31, 2011 Year ended March 31, 2010 (Reference purposes only) Equity in earnings (losses) of affiliates: For the year ended March 31, 2011 2,343 million yen For the year ended March 31, 2010 2,752 million yen (2) Consolidated Financial Conditions Total assets Net assets Net assets per share % yen As of March 31, 2011 11.4 As of March 31, 2010 12.6 (Reference purposes only) Equity capital: As of March 31, 2011 1,886,544 million yen As of March 31, 2010 2,168,965 million yen (3) Consolidated Cash Flows Year ended March 31, 2011 Year ended March 31, 2010

2. Dividends

Total yen yen yen yen yen million yen % %

Year ended March 31, 2010 (actual)

50.00 39,380 30.7 2.1

Year ended March 31, 2011 (actual)

50.00 38,597 54.1 1.9

Year ending March 31, 2012 (forecast)

50.00

26.4
Scheduled date for filing the securities report (Yuka Shoken Houkokusho): June 27, 2011

183,579

25.00

170,771 25.00 17,265,868 Cash flows from financing activities 1,904,477 Cash flows from operating activities 371,562 First quarter (June 30) Second quarter (September 30)

224,723
159,974

1.3 Ratio of equity to total assets million yen Cash and cash equivalents as of the end of fiscal year 2,753.87 24.00 million yen Ratio of ordinary profit to total assets 1.9 Ratio of ordinary profit to

rdinary income
44.0

454.9 Ratio of net income to equity 203,413 16,528,644 2,460.21 million yen million yen 3.8 92.42 162.96 3.5 5.7 6.8 Company Name: Tokio Marine Holdings, Inc. (the "Company") Stock Exchange Listings: Tokyo and Osaka Securities Code Number: 8766 Head Office: Tokyo, Japan 3,288,605 71,924 Corporate Planning Dept., Tokio Marine Holdings, Inc. Phone: 03-5223-3212 126,587

7.9

3,570,803

97,121

million yen Cash flows from investing activities 1,120,399 128,418 2,184,795 0.7 92.49 163.04 million yen Ratio of cash dividends to consolidated net income Total amount of annual dividends 25.00 25.00

26.00
Year-end

(March 31) Ratio of cash dividends to consolidated net assets 1,268,885 Cash dividends per share Third quarter (December 31)

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3. Consolidated Business Forecast for the year ending March 31, 2012 (April 1, 2011 to March 31, 2012)

(Note) Ratios reflect changes from the same periods in the previous fiscal year. % % million yen % yen For the six months ending September 30, 2011

1.3

1.2 95,000

0.2

123.88 For the year ending March 31, 2012 1.9 73.8 145,000 101.6 189.09

4. Others

(a) Changes to reflect amendments of accounting standards and related matters: Yes (b) Changes other than (a): None (3) Number of shares issued (common share) As of March 31, 2011 804,524,375 shares As of March 31, 2010 804,524,375 shares (b) Number of treasury shares held As of March 31, 2011 37,704,676 shares As of March 31, 2010 16,919,017 shares (c) Average number of shares outstanding During the year ended March 31, 2011 777,623,260 shares During the year ended March 31, 2010 787,605,852 shares (Reference purpose only) Summary of Non-consolidated Business Results of Tokio Marine Holdings, Inc. under Japanese GAAP for the Year Ended March 31, 2011

1. Non-consolidated Business Results for the Year ended March 31, 2011 (April 1, 2010 to March 31, 2011)

(1) Non-consolidated Results of Operations Operating income Operating profit Net income % % % % Year ended March 31, 2011 295.4 354.4 353.4

Year ended March 31, 2010
76.3
79.5
79.4
100.0

yen yen Year ended March 31, 2011 Year ended March 31, 2010 (2) Non-consolidated Financial Conditions Total assets Net assets Net assets per share % yen As of March 31, 2011 99.9 As of March 31, 2010 99.9 (Reference purpose only) Equity capital: As of March 31, 2011 As of March 31, 2010 (Inclusion/exclusion of specific subsidiaries of the Company resulting in an accompanying change in the scope of consolidation) (Note) Ratios reflect changes from the previous fiscal year. million yen million yen (2) Changes in accounting policies, procedures and presentations, etc. Note: Please see "Changes in significant matters related to consolidated financial statements" for details. (a) Total number of the shares issued (including treasury shares) 103.16 Ordinary profit 3,350,000 150,000 220,000 103.09 million yen (1) Significant changes with respect to the subsidiaries of the Company during the fiscal year ended March 31, 2011: None 32,324 million yen million yen Ordinary income Ordinary profit Net income Net income per share 2,492,379 2,491,142 0.05 Net income per share - Basic million yen million yen 2,482,926 2,481,451 million yen 80,226 127,806 121,630 million yen 1,700,000 44 million yen 121,621 Net income per share - Diluted 26,768 26,825 0.05 2,480,024 2,490,040 3,161.53 Ratio of equity to total assets 3,234.16

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2. Non-consolidated Business Forecast for the year ending March 31, 2012 (April 1, 2011 to March 31, 2012)

(Note) Ratios reflect changes from the same periods in the previous fiscal year. Operating income Operating profit % % million yen % million yen % yen For the six months ending September 30, 2011

56.7
59.7

22,000

59.7

22,000

59.6

For the year ending March 31, 2012

75.0
79.4

25,000

79.4

25,000

68.8

Notes concerning the business forecast and other items million yen million yen Ordinary profit 25,000 22,000 28.68 Net income Net income per share This “Summary of Consolidated Business Results” is outside the scope of the external auditor’s annual audit procedure required by the Financial Instruments and Exchange Act. The audit process has not been completed as of the date of the disclosure in the “Summary of Consolidated Business Results”. 32,000 25,000 32.60 Disclosure regarding the execution of the audit process Any business forecasts contained in this document are based on information available to the Company as of the date of this document and certain assumptions and actual results may materially differ from the forecasts depending upon various factors. For key assumptions for the business forecasts and

ther related information, please refer to "Business Results" on page 2 of the Appendix.

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1 Contents of Appendix

1. Business results ···························································································2

(1) Analysis on business results ···········································································2 (2) Analysis on financial condition ······································································3

2. Management Policies·····················································································5

(1) Management policies····················································································5 (2) Targeted management indices ·········································································5 (3) Medium- to long-term business strategies and issues facing the Tokio Marine Group········6

3. Consolidated Financial Statements ·····································································8

(1) Consolidated Balance Sheet ···········································································8 (2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ················································································································9 (3) Consolidated Statement of Changes in Shareholders' Equity·····································11 (4) Consolidated Statement of Cash Flows ·····························································13 (5) Notes regarding going concern assumption ························································14 (6) Changes in significant matters related to consolidated financial statements···················14 (7) Notes to consolidated financial statements ·························································15 Notes to consolidated statement of comprehensive income·······························15 Segment information············································································16 Per share information···········································································17 Subsequent events···············································································17

4. Non-consolidated Financial Statements ······························································18

(1) Non-consolidated Balance Sheet·····································································18 (2) Non-consolidated Statement of Income ············ ················································19 (3) Non-consolidated Statement of Changes in Shareholders' Equity·······························20 (4) Notes regarding going concern assumption ························································21

5. Others ·····································································································22

(1) Summary of Consolidated Business Results for the Fiscal Year ended March 31, 2011 ··············································································································22 (2) Premiums written and claims paid by lines of insurance (consolidated basis)·················23 (3) Securities ································································································24 (4) Information on derivatives ············································································27

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2

1. Business results

(1) Analysis on business results (a) Consolidated results of operations for the fiscal year ended March 31, 2011 During the fiscal year ended March 31, 2011, the global economy continued to gradually

expand. Concerns about public sector debt in Europe and spikes in crude oil prices, owing to

growing tensions in the Middle East, contrasted with signs of improvement in the U.S. economy,

wing to a second round of quantitative easing by the Federal Reserve and fiscal stimulus

measures, and continued high growth in emerging countries. The Japanese economy, despite the appreciation of the yen against other currencies and low share prices, moved onto a recovery track owing to government stimulus efforts and other factors promoting growth. In this environment, the Great East Japan Earthquake, the Christchurch Earthquake in New Zealand and other severe natural disasters around the globe cause us to expect that our Group insurance companies will have to make large claim payments. Meanwhile, we have been implementing a global diversification strategy in relation to our risk exposures and sources of income, characterized by reinsurance arrangements to reduce our risk exposures and increased provision of underwriting reserves, as well as active expansion of our overseas operations. Under these conditions, as a result of our efforts to improve performance centered on our property and casualty and life insurance businesses, our operating results for the year ended March 31, 2011 were as follows: Compared to the fiscal year ended March 31, 2010, ordinary income decreased by 282.1 billion yen to 3,288.6 billion yen, the main components of which were 2,874.0 billion yen in underwriting income and 347.7 billion yen in investment income. Compared to the fiscal year ended March 31, 2010, ordinary expenses decreased by 205.3 billion yen to 3,162.0 billion yen, the main components of which were underwriting expenses of 2,512.9 billion yen, investment expenses of 105.7 billion yen, and operating and general administrative expenses of 534.4 billion yen. As a result, ordinary profit decreased by 76.8 billion yen to 126.5 billion yen. Net income, composed of ordinary profit plus extraordinary gains minus extraordinary losses and total income taxes, decreased by 56.4 billion yen to 71.9 billion yen. Results from our reporting segments are as follows. However, the Company applied “Revised Accounting Standard for Disclosures about Segments of an Enterprise and Related Information” from the fiscal year ended March 31, 2011, and so those results have not been compared to the results from the fiscal year ended March 31, 2010. In the domestic property and casualty insurance business, ordinary income was 2,425.7 billion

yen. Ordinary profit composed of ordinary income minus ordinary expenses (including

1,156.3 billion yen of net claims paid and other) was 104.5 billion yen. In the domestic life insurance business, ordinary income was 442.2 billion yen. Ordinary profit composed of ordinary income minus ordinary expenses (including 138.6 billion yen of life insurance claims and other) was 7.1 billion yen.

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3 In the overseas insurance business, ordinary income was 539.9 billion yen. Ordinary profit composed of ordinary income minus ordinary expenses (including 183.5 billion yen of net claims paid and other) was 14.4 billion yen. (b) Consolidated business forecast for the fiscal year ending March 31, 2012 Our consolidated business forecast for the fiscal year ending March 31, 2012 is 3,350.0 billion yen in ordinary income, 220.0 billion yen in ordinary profit and 145.0 billion yen in net income. Our forecast is primarily based on the following assumptions.

With regard to net premiums written, the forecast is based on our own projections, taking

into consideration the results of previous years.

As for net incurred claims related to natural disasters, based on our prior experience we

expect 25.0 billion yen by Tokio Marine & Nichido Fire Insurance Co., Ltd. and 2.0 billion yen by Nisshin Fire & Marine Insurance Co., Ltd.

With regard to interest rates, exchange rates and equity market conditions, we assume there

will not be significant changes from market rates and conditions as of March 31, 2011. The forecast described above is produced based on the information available as of the date of publication of this document and the assumptions above. The actual result could differ materially from the forecast depending upon various factors. (2) Analysis on financial condition As of March 31, 2011, consolidated total assets were 16,528.6 billion yen. This represents a decrease of 737.2 billion yen, which was partly attributable to a decrease in the value of securities owing to decreases in stock prices. Cash flows for the fiscal year ended March 31, 2011 were as follows: Net cash provided by operating activities was 183.5 billion yen, a decrease of 187.9 billion yen compared to the fiscal year ended March 31, 2010, due partly to an increase in income taxes

paid. Net cash used in investing activities decreased by 267.8 billion yen to 97.1 billion yen,

mainly as a result of a decrease in payables under security lending transactions. Due mainly to increased expenses resulting from repurchase of treasury shares, net cash used by financing activities decreased by 64.7 billion yen to 224.7 billion yen. As a result, the balance of cash and cash equivalents was 1,120.3 billion yen, a decrease of 148.4 billion yen from the fiscal year ended March 31, 2010. The equity ratios and market-value basis equity ratios are shown below. (%) Fiscal year ended March 31, 2007 Fiscal year ended March 31, 2008 Fiscal year ended March 31, 2009 Fiscal year ended March 31, 2010 Fiscal year ended March 31, 2011 Equity ratios 19.7 14.8 10.7 12.6 11.4

Market-value basis equity ratios 20.8 17.1 12.4 12.0 10.3

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4 Note 1. The “equity ratio” is defined by (“equity” / “total assets”) x 100. Note 2. The “market-value basis equity ratio” is defined by (“market capitalization” / “total assets”) x 100. Note 3. As the Tokio Marine Group’s main business is the insurance business, the following items are not stated: "Cash flow and interest-bearing liabilities ratio" and "Interest coverage ratio".

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5

2. Management Policies

(1) Management policies In November 2003, Tokio Marine Holdings formulated the “Tokio Marine Group Corporate Philosophy” to be upheld by all officers and employees of the Group. “Tokio Marine Group Corporate Philosophy” The Tokio Marine Group is committed to the continuous enhancement of corporate value, with customer trust at the base of all of its activities.

By providing customers with the highest quality products and services, we will spread safety

and security to all around us.

For fulfilling our responsibility to shareholders, we will pursue global development of sound,

growing and profitable businesses.

For promoting the creativity of each and every employee, we will foster a corporate culture

which encourages free and open communications.

While demonstrating responsible management as a good corporate citizen, we will make a

positive contribution to society. (2) Targeted management indices As target indices to present business results of the overall Group, the Company adopts "adjusted earnings" and "adjusted return on equity (ROE)". For the fiscal year ending March 31, 2012, the Company projects approximately 128.0 billion yen in adjusted earnings and 4.4% as an adjusted ROE.

(Note) In order to capture and enhance the corporate value of the Tokio Marine Group, targeted earnings and the ROE are based on “adjusted earnings”, which are calculated as follows:

Adjusted ROE = Adjusted earnings / Adjusted capital (average balance basis)
Adjusted Earnings*1 = Total of adjusted earnings for each business segment described below

(The sum of (a) and (c) is called "core adjusted earnings". Beginning with the fiscal year ended March 31, 2009, the amount of dividends will be determined based on the core adjusted earnings.) (a) Property and casualty insurance business Adjusted earnings = Net income determined following financial accounting principles + Provision for catastrophe reserves, etc.2 + Provision for reserves for price fluctuation2 – Gains (losses) from sales or valuations of ALM bonds and interest rate swaps3 – Gains (losses) from sales or valuations of stocks and properties – Extraordinary gains/losses, valuation allowances and others (b) Life insurance business4 Adjusted earnings = Increase in embedded value*5 during the fiscal year – Capital transactions, such as capital increase (c) Other businesses Net income determined following financial accounting principles

Adjusted Capital*1 = Total of adjusted capital of each business segment described below

(a) Property and casualty insurance business Adjusted capital = Capital determined following financial accounting principles + Catastrophe reserves,

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6

etc. + Reserves for price fluctuation

(b) Life insurance business Adjusted capital = Embedded value (c) Other businesses Net assets determined following financial accounting principles 1 After tax 2 Reversals are subtracted 3 ALM: asset liability management Fluctuations in the market value of liabilities of ALM is excluded 4 Calculation are based on (c) above for life insurance companies in certain regions (overhead costs incurred by the head office are deducted from profits) *5 Embedded value: An indexed value in which the net present value of profits to be gained from premiums written is added to the net asset value The projection of adjusted earnings and the adjusted ROE for the fiscal year ending March 31, 2012 was announced in the press release dated May 19, 2011.

(3) Medium- to long-term business strategies and issues facing the Tokio Marine Group In order for the Tokio Marine Group to maintain sustainable growth in the current challengin g business environment, it will be essential for us to implement a competitive growth strategy. It will also be necessary for us to strengthen our gl obal management structure, in anticipation of advancements in global standardization of standards and regulations applicable to the insurance business, including accounting principles and risk management standards. With this in mind, the Tokio Marine Group will aim to be a "global corporate group maintaining growth by offering quality that customers select" and seek to maximize corporate value through the framework with three pillars set forth below. (a) Maintaining sustainable earnings growth through improvement of quality In order for the Group to grow in a sustainable manner, we expect it will be necessary for all Group companies to innovate through the growth cycle illustrated on the right. We will endeavor to enhance stakeholder value in a sustainable manner in this way. (b) Establishing an optimal business portfolio We intend to focus our m anagement resources in the businesses where we ex pect that we can achieve growth cycle through improvement of quality. We intend to pursue an optimal business portfolio through enhanced choice and focused processes with the goal of achieving a portfolio with well balanced growth potential and profitability. (c) Enhancing our global management structure To provide all of our stakeholders with high value regardless of country or regional location, we intend to build and enha nce a management structure that can flexibly utilize management resources available within the Group on a global basis. In light of the fact that acc ounting standards and supervisory regulations covering the insurance

Improvement in profitability and capital efficiency

Improvement of quality

New investment in products and services Increase in the number of loyal customers

Increase in customer value Increase in shareholder value Increase in employee value Increase in social value

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7 business have been undergoing a process of revision, one of the activities we i ntend to place a particular focus on is building the infrastructure needed for enhancing

ur risk-based

management (through an ERM system).

SLIDE 11

3. Consolidated Financial Statements

(1) Consolidated Balance Sheet

(Yen in millions)

(Assets)

452,194 398,488 116,511 207,541 150,969 121,967 22,578 30,725 1,339,172 1,080,670 11,778 14,056 12,617,817 12,173,088 547,922 482,899 324,362 313,760

Land

152,561 144,590

Buildings

141,084 139,144

Construction in progress

7,944 6,604

Other tangible fixed assets

22,771 23,421 380,243 344,479

Software

5,858 4,841

Goodwill

274,604 258,022

Other intangible fixed assets

99,780 81,616 1,152,853 1,160,925 81,993 149,030 92,859 72,547

25,389
21,536

17,265,868 16,528,644

(Liabilities) Cash and bank deposits Call loans Monetary receivables bought Money trusts Securities Receivables under resale agreement Receivables under security borrowing transactions Loans Tangible fixed assets Intangible fixed assets Other assets Total assets Deferred tax assets Customers' liabilities under acceptances and guarantees Reserve for bad debts

As of March 31, 2010 As of March 31, 2011 11,744,656 11,868,495

Outstanding claims

1,222,169 1,363,211

Underwriting reserves

10,522,486 10,505,284 178,821 125,079 2,571,720 2,144,469 1,580,405 1,375,838

Other liabilities

991,314 768,631 160,053 166,199 12 18 24,953 22,424

Reserve for retirement of fixed assets

1,603

61,401

65,855

Reserve for price fluctuation

61,401 65,855 113,528 37,864 131,462 121,213 92,859 72,547 15,081,073 14,624,167

(Net assets) Shareholders' equity Share capital

150,000 150,000

Retained earnings

1,098,403 1,135,510

Treasury shares

59,481
109,749

Total shareholders' equity

1,188,921 1,175,760 1,037,168 822,481 12,700 16,483

69,825
128,181

980,043 710,783 1,102 1,426 14,727 16,506 2,184,795 1,904,477 17 265 868 16 528 644

Accumulated other comprehensive income Total accumulated other comprehensive income Unrealized gains on securities, net of taxes Deferred gains/losses on hedge transactions Foreign currency translation adjustments Reserve for employees' bonuses Reserve under the special law Deferred tax liabilities Payables under security lending transactions Reserve for retirement benefits for directors and corporate auditors Total liabilities and net assets Negative goodwill Total liabilities Total net assets Share acquisition rights Non-controlling interests Corporate bonds Reserve for retirement benefits Acceptances and guarantees Underwriting funds Other liabilities

17,265,868 16,528,644

Total liabilities and net assets

8

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(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income (Consolidated Statement of Income)

(Yen in millions)

3,570,803 3,288,605 2,968,150 2,874,082 2,292,911 2,272,117 138,386 125,301 66,502 64,997 464,799 405,361 5,550 6,304 536,385 347,757 206,959 219,951 1,219 46 8,316 11,737 79,144 137,446 2,623 1,222

30,405

298,893

5,731

11,945

66,502
64,997

66,267 66,766 Amortization of negative goodwill 10,264 10,250 2,752 2,343 53,250 54,172 3,367,389 3,162,018 2,734,036 2,512,937 1,345,770 1,339,724 94,841 93,749 464,950 448,444 278,729 273,929 599 509 104,130 166,253 9,152 176,563 429,750 7,016 6,111 6,744 66,122 105,798

75

Ordinary income Underwriting income Net premiums written Other ordinary income Investment expenses Year ended March 31, 2010 Year ended March 31, 2011 Net claims paid Dividends to policyholders Deposit premiums from policyholders Investment income on deposit premiums from policyholders Life insurance premiums Transfer of investment income on deposit premiums Equity in earnings of affiliates Provision for outstanding claims Ordinary expenses Investment income Underwriting expenses Life insurance claims Loss adjustment expenses Agency commissions and brokerage Maturity refunds to policyholders Gains on derivatives Other ordinary income Other underwriting income Interest and dividends Gains on investment in money trusts Gains on trading securities Gains on sales of securities Other investment income Gains on redemption of securities Provision for underwriting reserves Other underwriting expenses Losses on investment in money trusts Gains on separate accounts 11,777 13,694 28,729 24,559 5,705 4,635 6,476

28,282

13,433 34,550 553,709 534,487 21,808 12,660 7,173 4,502 5,727 729 32 149 Amortization of deferred assets under Article 113 of the Insurance Business Law 534 1,061 8,340 6,217

8,286
3,865

203,413 126,587 5,143 5,360 4,226 2,980

55
76

916 2,247 27,429 24,263 3,414 4,253 13,487 5,390 239

4,951

4,454 Provision of reserve for price fluctuation 4,951 4,454

3,029

5,336 7,135 181,127 107,684 67,475 59,752 8,947

25,834
25,538

50,588 34,213

73,470

2,120 1,546 128,418 71,924 Losses on separate accounts Other investment expenses Losses on redemption of securities Losses on sales of securities Impairment losses on securities Gains on changes in equity of affiliates Extraordinary gains Extraordinary losses Income before income taxes Income taxes - current Income taxes - deferred Other extraordinary gains Profit from negative goodwill result Other ordinary expenses Provision of reserve for bad debts Ordinary profit or losses Losses on bad debts Net income Non-controlling interests Provision for reserve under the special law Losses on adjustment for changes of accounting standard for asset retirement obligations Impairment losses on fixed assets Gains on disposal of fixed assets Interest paid Operating and general administrative expenses Income before non-controlling interests Losses on changes in equity of affiliates Total income taxes Income taxes for prior periods Losses on derivatives Other ordinary expenses Deferred expenses under Article 113 of the Insurance Business Law Losses on disposal of fixed assets Other extraordinary losses

9

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(Consolidated Statement of Comprehensive Income)

(Yen in millions)

73,470

Other comprehensive income

215,287
3,782
57,488
1,031

Total other comprehensive income

270,024

Total Comprehensive income

196,554

(Breakdown)

197,550
996

Comprehensive income attributable to owners of the parent Comprehensive income attributable to non-controlling interests Year ended March 31, 2011 Year ended March 31, 2010 Income before non-controlling interests Unrealized gains on securities, net of taxes Deferred gains/losses on hedge transactions Foreign currency translation adjustments Share of other comprehensive income of affiliates accounted for by the equity method

10

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(3) Consolidated Statement of Changes in Shareholders' Equity

(Yen in millions) Shareholders' equity Share capital Beginning balance 150,000 150,000 Changes during the year Total changes during the year

Ending balance

150,000 150,000 Retained earnings Beginning balance 1,006,891 1,098,403 Changes due to the change of accounting policies applied to foreign affiliates

6,264

Changes during the year Dividends

37,804
39,904

Net income 128,418 71,924

42
70

Changes in the scope of equity method affiliates

799

Others (Note) 941 (Note) -307 91,512 30,841 Ending balance 1,098,403 1,135,510 Treasury share Beginning balance

59,663
59,481

Changes during the year Repurchase of treasury shares

97
50,587

279 319 181

50,267

Ending balance

59,481
109,749

Total shareholders' equity Beginning balance 1,097,227 1,188,921 Changes due to the change of accounting policies applied to foreign affiliates

6,264

Changes during the year Dividends

37,804
39,904

Net income 128,418 71,924 Repurchase of treasury shares

97
50,587

Year ended March 31, 2011 Year ended March 31, 2010 Disposition of treasury shares Total changes during the year Total changes during the year Disposition of treasury shares epu c ase o t easu y s a es 97 50,587 236 249

799

Others (Note) 941 (Note) -307 91,694

19,425

Ending balance 1,188,921 1,175,760 Disposition of treasury shares Changes in the scope of equity method affiliates Total changes during the year

11

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(3) Consolidated Statement of Changes in Shareholders' Equity

(Yen in millions) Accumulated other comprehensive income Unrealized gains on securities, net of tax Beginning balance 608,106 1,037,168 Changes during the year Net changes in items other than shareholders' equity 429,062

214,686

Total changes during the year 429,062

214,686

Ending balance 1,037,168 822,481 Deferred gains/losses on hedge transactions Beginning balance 17,796 12,700 Changes during the year Net changes in items other than shareholders' equity

5,096

3,782 Total changes during the year

5,096

3,782 Ending balance 12,700 16,483 Foreign currency translation adjustments Beginning balance

95,297
69,825

Changes during the year Net changes in items other than shareholders' equity 25,471

58,355

Total changes during the year 25,471

58,355

Ending balance

69,825
128,181

Share acquisition rights Beginning balance 849 1,102 Changes during the year Net changes in items other than shareholders' equity 252 324 Total changes during the year 252 324 Ending balance 1,102 1,426 Non-controlling interests Beginning balance 10,832 14,727 Changes during the year Net changes in items other than shareholders' equity 3,895 1,778 Total changes during the year 3,895 1,778 Ending balance 14,727 16,506 Year ended March 31, 2011 Year ended March 31, 2010 d g ba a ce ,7 7 6,506 Total net assets Beginning balance 1,639,514 2,184,795 Changes due to the change of accounting policies applied to foreign affiliates

6,264

Changes during the year Dividends

37,804
39,904

Net income 128,418 71,924 Repurchase of treasury shares

97
50,587

Disposition of treasury shares 236 249 Changes in the scope of equity method affiliates

799

Others (Note) 941 (Note) -307 Net changes in items other than shareholders' equity 453,586

267,157

Total changes during the year 545,280

286,582

Ending balance 2,184,795 1,904,477 (Note) “Others” for the fiscal year ended March 31, 2011 consisted mainly of reclassification adjustments of tax effects initially appraised in accordance with accounting policies adopted by overseas consolidated subsidiaries. “Others” for the fiscal year ended March 31, 2010 consisted mainly of: (i) reversal of valuation reserves in connection with deferred tax assets of overseas consolidated subsidiaries initially appraised in accordance with accounting policies adopted by those overseas consolidated subsidiaries; and (ii) valuation adjustments in connection with assets of

verseas equity method affiliates initially appraised in accordance with accounting policies prescribed in the region or country in which those

affiliates are located.

12

SLIDE 16

(4) Consolidated Statement of Cash Flows

(Yen in millions)

I. Cash flows from operating activities

Income before income taxes 181,127 107,684 Depreciation 57,025 31,058 Impairment losses on fixed assets 13,487 5,390 Amortization of goodwill 16,581 16,580 Amortization of negative goodwill

10,264
10,250

Profit from negative goodwill result

55

Increase in outstanding claims 8,704 178,182 Increase in underwriting reserves 426,983 4,162 Increase in reserve for bad debts 4,617

3,688

Increase in reserve for retirement benefits 11,543 6,160 Increase in reserve for retirement benefits for directors and corporate auditors 2 5 Increase in reserve for employees' bonuses 4,360

1,942

Increase in reserve for retirement of tangible fixed assets

1,755
1,603

Increase in reserve for price fluctuation 4,951 4,454 Interest and dividends

206,959
219,951

Net gains and losses on securities (negative)

39,091
105,010

Interest expenses 7,173 4,502 Gains and losses on foreign exchange (negative) 13,460 24,772 Gains and losses related to tangible fixed assets (negative)

840

2,830 Equity in earnings (losses) of affiliates (negative)

2,752
2,343

Investment gains and losses on separate accounts (negative)

298,893

28,282 Increase in other assets (other than investing and financing activities) (negative) 3,390

22,161

Increase in other liabilities (other than investing and financing activities)

42,036

22,140 Others

1,478

2,932 Sub-total 149,336 72,131 Interest and dividends 208,611 214,487 Interest paid

7,901
4,671

Income taxes (paid) / refund 18,753

102,649

Others 2,762 4,281 371,562 183,579 Year ended March 31, 2011 Cash flows from operating activities Year ended March 31, 2010 , ,

II. Cash flows from investing activities

Net increase in deposit (negative) 117,902 23,177 Purchases of monetary receivables bought

757,838
807,992

Proceeds from sales and redemption of monetary receivables bought 490,195 984,746 Increase in money trusts

9,500
3,000

Decrease in money trusts 7,629 692 Purchases of securities

3,732,858
3,362,176

Proceeds from sales and redemption of securities 3,084,138 3,275,850 Loans made

188,755
200,828

Proceeds from collection of loans 252,546 261,983 Increase in cash received under securities lending transactions 921,011

251,372

Others 874

3,570

II (a) Sub-total 185,345

82,490

( Ⅰ ＋ Ⅱ(a) ） 556,907 101,088 Purchases of tangible fixed assets

26,374
24,235

Proceeds from sales of tangible fixed assets 11,988 9,604 Payments to acquire equity of subsidiaries

188
170,771
97,121
III. Cash flows from financing activities

Proceeds from borrowing 5,794 50,000 Repayments of borrowing

88,379
167,908

Proceed from issuance of short-term corporate bond

9,999

Redemption of short-term corporate bond

10,000

Proceeds from issuance of corporate bond 661 271 Redemption of corporate bond

121,826
53,361

Increase in cash received under securities lending transactions 83,464 38,658 Repurchases of treasury share

97
50,587

Dividends paid

37,742
39,848

Dividends paid to non-controlling interests

117
249

Proceeds from paid-up share capital from non-controlling interests 974 1,140 Others

2,705
2,837
159,974
224,723

Ⅳ. Effect of exchange rate changes on cash and cash equivalents 8,974

10,220

Ⅴ. Net increase in cash and cash equivalents 391,333

148,485

Ⅵ. Cash and cash equivalents at beginning of period 877,551 1,268,885

VII. Cash and cash equivalents at end of period

1,268,885 1,120,399 Cash flows from financing activities p g Cash flows from investing activities

13

SLIDE 17

14

(5) Notes regarding going concern assumption

Not applicable.

(6) Changes in significant matters related to consolidated financial statements

Application of "Accounting Standard for Equity Method of Accounting for Investments" and "Practical Solution on Unification of Accounting Policies Applied to Associates Accounted for Using the Equity Method" The Company has applied "Accounting Standard for Equity Method of Accounting for Investments" (ASBJ Statement No.16, March 10, 2008) and "Practical Solution on Unification

f Accounting Policies Applied to Associates Accounted for Using the Equity Method" (PITF

No.24, March 10, 2008) from the fiscal year ended March 31, 2011 and implemented the adjustments required for its consolidated financial reporting. The impact of the changes described above on ordinary profit and income before income taxes for the fiscal year ended March 31, 2011 is considered immaterial. Application of "Accounting Standard for Asset Retirement Obligations" The Company has applied "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) from the fiscal year ended March 31, 2011. As a result of application of the standard and guidance stated above, ordinary profit decreased by 193 million yen, and income before income taxes decreased by 3,222 million yen,

respectively. In addition, the application of the standard and guidance as of the current fiscal

year resulted in a 3,813-million-yen change in asset retirement obligations. Application of "Accounting Standard for Business Combinations" and related matters The Company has applied "Accounting Standard for Business Combinations" (ASBJ Statement No.21, December 26, 2008), "Accounting Standard for Consolidated Financial Statements" (ASBJ Statement No.22, December 26, 2008), "Partial Amendments to Accounting Standard for Research and Development Costs" (ASBJ Statement No.23, December 26, 2008), "Revised Accounting Standard for Business Divestitures" (ASBJ Statement No.7, December 26, 2008), "Revised Accounting Standard for Equity Method of Accounting for Investments" (ASBJ Statement No.16, December 26, 2008), and "Revised Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures" (ASBJ Guidance

No. 10, December 26, 2008) from the fiscal year ended March 31, 2011.

SLIDE 18

(7) Notes to consolidated financial statements

Notes to consolidated statement of comprehensive income Following is the comparative information for the new disclosure at page 10.

1. Comprehensive income for the fiscal year ended March 31, 2010

Comprehensive income attributable to owners of the parent 577,856 Comprehensive income attributable to non-controlling interests 3,247 Total 581,103

2. Other comprehensive income for the fiscal year ended March 31, 2010

Unrealized gains on securities, net of taxes 428,915 Deferred gains/losses on hedge transactions

5,096

Foreign currency translation adjustments 25,406 Share of other comprehensive income of affiliates accounted for by the equity method 1,337 Total 450,564 (Additional information) The Company has applied “Accounting Standard for Presentation of Comprehensive Income” (ASBJ Statement No.25, June 30, 2010) from the fiscal year ended March 31, 2011. (Yen in millions) (Yen in millions) 15

SLIDE 19

Segment information

Year ended March 31, 2011 (April 1, 2010 - March 31, 2011) 1.Outline of reportable segments 2.Method of computing ordinary income, profit/loss, assets, liabilities, and other items by reportable segments 3.Ordinary income, profit/loss, assets, liabilities and other items by reportable segments Domestic property and casualty insurance Domestic life insurance Overseas insurance Financial and other Total Ordinary income 2,418,883 441,960 539,732 47,002 3,447,578 (158,973) 3,288,605 6,897 275 175 23,862 31,211 (31,211)

Total

2,425,781 442,235 539,908 70,864 3,478,789 (190,184) 3,288,605 104,576 7,129 14,453 2,098 128,257 (1,670) 126,587 Segment assets 8,218,061 6,036,083 1,950,366 350,536 16,555,048 (26,403) 16,528,644 Other items Depreciation 18,409 342 11,936 370 31,058

31,058

Amortization of goodwill 283

16,296
16,580
16,580

8,917 248 918 165 10,250

10,250

Interest and dividends 114,428 63,444 43,133 175 221,182 (1,230) 219,951 Interest paid 2,992 857 195 556 4,601 (99) 4,502

2,343
2,343
2,343
22,936
22,936
22,936

22,087 577 7,108 204 29,978 (25) 29,953 (Note) 1.Descriptions of "Adjustments" are as follows; "Ordinary expenses". 2."Segment profit" is reconciled to "Ordinary profit" in the consolidated statement of income. (Additional information) The Company, as a holding company that controls the group's business, establishes basic policies about the group business management, formulates the corporate strategy based on surrounding business environment, and promotes the group's business activities. The Company classified its operations into four segments following its corporate strategies: "Domestic property and casualty insurance"; "Domestic life insurance"; "Overseas insurance"; and "Financial and other". "Domestic property and casualty insurance" primarily comprises underwriting property and casualty insurance in Japan and related investments. "Domestic life insurance" primarily comprises underwriting of life insurance in Japan and related investments. "Overseas insurance" primarily comprises underwriting of insurance overseas and related investments. In "Financial and other", the main businesses are securities investment advisory services, securities investment trusts services, derivatives services, staffing business, facility management business and nursing care services. The accounting treatment for reported operating segments is the same as described in "Basis of consolidated financial statements". Segment profit is based on ordinary income. Ordinary income from transactions with other operating segments is based on prevailing market prices. Adjustments (Note 1) Amounts shown on the consolidated financial statements (Note 2) Reportable segments (Yen in millions) The Company has applied "Accounting Standard for Disclosures about Segments of an Enterprise and Related Information" (ASBJ Statement No.17, March 27, 2009) and "Guidance on Accounting Standard for Disclosures about Segments of an Enterprise and Related Information" (ASBJ Guidance No.20, March 21, 2008) from the fiscal year ended March 31, 2011. (1) The major component of "Adjustments" for "Ordinary income from external customers" amounted to

158,973 million yen is the transfer of "reversal of underwriting reserves" of 157,291 million yen.

This item is included in "Ordinary income" of "Domestic property and casualty insurance" segment, while in the (2) "Adjustments" for "Segment profit" of -1,670 million yen is the elimination of inter-segment transactions. (3) "Adjustments" for "Segment assets" of -26,403 million yen is the elimination of inter-segment transactions. (4) "Adjustments" for "Other items" is the elimination of inter-segment transactions. consolidated statement of income this amount is included in "provision for underwriting reserves" within Ordinary income from external customers Ordinary income from transactions with other

perating segments

Increase in tangible and intangible fixed assets Equity in earnings of affiliates Amortization of negative goodwill Investments in affiliates accounted for by the equity method Segment profit

16

SLIDE 20

Per share information yen Net assets per share 2,460.21 Net income per share - Basic 92.49 Net income per share - Diluted 92.42 yen Net assets per share 2,753.87 Net income per share - Basic 163.04 Net income per share - Diluted 162.96 (Note) Calculation of "Net income per share - Basic" and "Net income per share - Diluted" is based on the following figures. Net income per share - Basic Net income (Yen in millions) 71,924 Net income not attributable to common shareholders (Yen in millions) Net income attributable to common shareholders (Yen in millions) 71,924 Average number of shares outstanding (thousand shares) 777,623 Net income per share - Diluted Adjustment of net income (Yen in millions)

Increase in number of common shares (thousand shares)

545 (Number of share acquisition rights) (thousand shares) 545 Net income per share - Basic Net income (Yen in millions) 128,418 Net income not attributable to common shareholders (Yen in millions) Net income attributable to common shareholders (Yen in millions) 128,418 Average number of shares outstanding (thousand shares) 787,605 Net income per share - Diluted Adjustment of net income (Yen in millions)

Increase in number of common shares (thousand shares)

393 (Number of share acquisition rights) (thousand shares) 393 Subsequent events Not applicable. Year ended March 31, 2010 (April 1, 2009 - March 31, 2010)

Year ended March 31, 2011 (April 1, 2010 - March 31, 2011)

Year ended March 31, 2010 (April 1, 2009 - March 31, 2010) Year ended March 31, 2011 (April 1, 2010 - March 31, 2011)

17

SLIDE 21

4. Non-consolidated Financial Statements

(1) Non-consolidated Balance Sheet

(Yen in millions) Assets Current assets: Cash and bank deposits 8,033 13,918 Prepaid expense Deferred tax assets 152 232 Receivables 6,061 25,462 Others 17 14 Total current assets 14,265 39,629 Fixed assets: Tangible fixed assets Buildings (Net) 173 152 Motor vehicles and transport equipment (Net) 5 8 Office equipment (Net) 48 35 Total tangible fixed assets 227 197 Intangible fixed assets Telephone right Total intangible fixed assets Investments and other assets Investments in subsidiaries and affiliates 2,477,642 2,442,812 Deferred tax assets 238 270 Others 3 16 Total investments and other assets 2,477,884 2,443,099 Total non-current assets 2,478,113 2,443,297 Total assets 2,492,379 2,482,926 Liabilities Current liabilities: Accounts payable 384 388 Accrued expenses 212 244 Accrued income taxes 70 226 Accrued business office taxes 8 10 Accrued consumption tax 51 55 Deposits received 12 15 Reserve for bonus 293 312 Total current liabilities 1,033 1,253 Fixed liabilities: Long-term accounts payable 46 36 Reserve for retirement benefit 156 185 Total fixed liabilities 203 222 Total liabilities 1,236 1,475 Net assets Shareholders' equity: Share capital 150,000 150,000 Capital surplus Additional paid-in capital 1,511,485 1,511,485 Others 86,557 86,487 Total capital surplus 1,598,043 1,597,973 Retained earnings Other retained earnings General reserve 782,275 732,275 Retained earnings carried forward 19,203 109,525 Total retained earnings 801,478 841,800 Treasury share

59,481
109,749

Total shareholders' equity 2,490,040 2,480,024 Share acquisition rights 1,102 1,426 Total net assets 2,491,142 2,481,451 2,492,379 2,482,926 Total liabilities and net assets As of March 31, 2010 As of March 31, 2011

18

SLIDE 22

(2) Non-consolidated Statement of Income

(Yen in millions)

Operating income: Dividends received from subsidiaries and affiliates 25,617 120,892 Fees received from subsidiaries and affiliates 6,706 6,913 Total operating income 32,324 127,806 Operating expenses: Operating and general administrative expenses 5,555 6,175 Total operating expenses 5,555 6,175 Operating profit 26,768 121,630 Non-operating income: Interest income 3 4 Interest on securities 36 3 16 15 Other non-operating income 1 2 Total non-operating income 58 26 Non-operating expenses:

27

7 Total non-operating expenses 34 Ordinary profit 26,825 121,621 Extraordinary gains: Gains on sales of fixes assets

Gains on liquidation of subsidiaries

3

Total extraordinary gains

3 Extraordinary losses: Losses on sales of fixed assets

Losses on disposal of fixed assets

31

Impairment losses on investment of affiliates

26,252 41,299 Total extraordinary losses 26,284 41,299 Income before income taxes 545 80,321 Income taxes-current 328 207 Income taxes-deferred 171

112

Total income taxes 500 95 Net income 44 80,226 Year ended March 31, 2010 Year ended March 31, 2011 Miscellaneous expenses Transaction fee for repurchase of treasury shares Gains on lapsed dividend payment obligation 19

SLIDE 23

(3) Non-consolidated Statement of Changes in Shareholders' Equity

(Yen in millions) Shareholders' equity Share capital Beginning balance 150,000 150,000 Changes during the year Total changes during the year

Ending balance

150,000 150,000 Capital surplus Additional paid-in capital Beginning balance 1,511,485 1,511,485 Changes during the year Total changes during the year

Ending balance

1,511,485 1,511,485 Other capital surplus Beginning balance 86,600 86,557 Changes during the year Disposition of treasury shares

42
70

Total changes during the year

42
70

Ending balance 86,557 86,487 Retained earnings Other retained earnings General reserve Beginning balance 702,275 782,275 Changes during the year Provision of general reserve 80,000

Reversal of general reserve
50,000

Total changes during the year 80,000

50,000

Ending balance 782,275 732,275 Retained earnings carried forward Beginning balance 136,962 19,203 Changes during the year Provision of general reserve

80,000
Reversal of general reserve

50 000 Year ended March 31, 2011 Year ended March 31, 2010 Reversal of general reserve

50,000

Dividends

37,804
39,904

Net income 44 80,226 Total changes during the year

117,759

90,321 Ending balance 19,203 109,525 Treasury share Beginning balance

59,663
59,481

Changes during the year Repurchase of treasury shares

97
50,587

Disposition of treasury shares 279 319 Total changes during the year 181

50,267

Ending balance

59,481
109,749

Total shareholders' equity Beginning balance 2,527,661 2,490,040 Changes during the year Dividends

37,804
39,904

Net income 44 80,226 Repurchase of treasury shares

97
50,587

Disposition of treasury shares 236 249 Total changes during the year

37,620
10,015

Ending balance 2,490,040 2,480,024 Share acquisition rights Beginning balance 849 1,102 Changes during the year Net changes in items other than shareholders' equity 252 324 Total changes during the year 252 324 Ending balance 1,102 1,426 Total net assets Beginning balance 2,528,510 2,491,142 Changes during the year Dividends

37,804
39,904

Net income 44 80,226 Repurchase of treasury shares

97
50,587

Disposition of treasury shares 236 249 Net changes in items other than shareholders' equity 252 324 Total changes during the year

37,367
9,691

Ending balance 2,491,142 2,481,451 g , , , ,

20

SLIDE 24

(4) Notes regarding going concern assumption Not applicable. 21

SLIDE 25

5. Others

(1) Summary of Consolidated Business Results for the Fiscal Year Ended March 31, 2011

(Yen in millions, except for %) Ordinary income and expenses: 2,968,150 2,874,082

94,067
3.2

Net premiums written 2,292,911 2,272,117

20,794
0.9

138,386 125,301

13,084
9.5

Life insurance premiums 464,799 405,361

59,437
12.8

2,734,036 2,512,937

221,098
8.1

Net claims paid 1,345,770 1,339,724

6,045
0.4

Loss adjustment expenses 94,841 93,749

1,092
1.2

Agency commissions and brokerage 464,950 448,444

16,505
3.5

Maturity refunds to policyholders 278,729 273,929

4,799
1.7

Life insurance claims 104,130 166,253 62,123 59.7 Provision for outstanding claims 9,152 176,563 167,410 1,829.1 Provision for underwriting reserves 429,750 7,016

422,734
98.4

536,385 347,757

188,628
35.2

Interest and dividends 206,959 219,951 12,992 6.3 Gains on sales of securities 79,144 137,446 58,301 73.7 66,122 105,798 39,676 60.0 Losses on sales of securities 11,777 13,694 1,917 16.3 Deposit premiums from policyholders Investment income Year ended March 31, 2011 March 31, 2010 Year ended Increase or Decrease Rate of change (%) by Comparison Underwriting income Underwriting expenses Investment expenses Impairment losses on securities 28,729 24,559

4,169
14.5

553,709 534,487

19,222
3.5

44,459 54,105 9,646 21.7 Equity in earnings (losses) of affiliates 2,752 2,343

409
14.9
8,286
3,865

4,421

203,413

126,587

76,826
37.8

Extraordinary gains and losses: 5,143 5,360 216 4.2 27,429 24,263

3,166
11.5
22,286
18,902

3,383

181,127

107,684

73,443
40.5

67,475 59,752

7,722
11.4

8,947

8,947
100.0
25,834
25,538

296

50,588

34,213

16,374
32.4

130,538 73,470

57,068
43.7

2,120 1,546

574
27.1

128,418 71,924

56,493
44.0

Ordinary profit Income taxes - current Income before income taxes Income taxes for prior periods Deferred expenses under Article 113 of the Insurance Business Law Extraordinary gains Extraordinary losses Extraordinary gains and losses Other ordinary income and expenses Total income taxes Income taxes - deferred Net income Non-controlling interests Income before non-controlling interests Operating and general administrative expenses

22

SLIDE 26

(2) Premiums written and claims paid by lines of insurance (consolidated basis)

Direct premiums written including deposit premiums from policyholders (Yen in millions, except for %)

Premiums Premiums

Fire and allied lines 477,626 19.0 12.8 441,311 17.8

7.6

Hull and cargo 94,955 3.8

11.4

97,508 3.9 2.7 Personal accident 279,218 11.1

5.4

277,128 11.2

0.7

Voluntary automobile 1,013,001 40.3 2.9 1,013,141 41.0 0.0 Compulsory automobile liability 217,739 8.7

7.3

220,106 8.9 1.1 Others 430,265 17.1 41.7 424,387 17.2

1.4

Total 2,512,806 100.0 7.0 2,473,584 100.0

1.6

(Deposit premiums from policyholders)

138,386 5.5

16.8

125,301 5.1

9.5

Net premiums written (Yen in millions, except for %)

Premiums Premiums

Fire and allied lines 420,857 18.4 20.1 396,089 17.4

5.9

Hull and cargo 83,718 3.7

9.5

85,509 3.8 2.1 Year ended March 31, 2010 Year ended March 31, 2011 Year ended March 31, 2010 Year ended March 31, 2011

Rate of change (%) Composition ratio (%) Composition ratio (%) Rate of change (%) Composition ratio (%) Rate of change (%) Composition ratio (%) Rate of change (%)

Personal accident 169,949 7.4 0.5 171,497 7.5 0.9 Voluntary automobile 1,009,186 44.0 3.1 1,013,178 44.6 0.4 Compulsory automobile liability 228,755 10.0

11.7

235,226 10.4 2.8 Others 380,444 16.6 33.7 370,616 16.3

2.6

Total 2,292,911 100.0 7.4 2,272,117 100.0

0.9

Net claims paid (Yen in millions, except for %)

Claims paid Premiums

Fire and allied lines 161,572 12.0 13.7 150,753 11.3

6.7

Hull and cargo 49,791 3.7

9.9

44,549 3.3

10.5

Personal accident 89,925 6.7

2.0

90,192 6.7 0.3 Voluntary automobile 639,826 47.5 2.9 655,722 48.9 2.5 Compulsory automobile liability 233,455 17.3

2.5

234,344 17.5 0.4 Others 171,199 12.7 9.4 164,163 12.3

4.1

Total 1,345,770 100.0 3.0 1,339,724 100.0

0.4

Note: Numbers are after elimination of inter-segment transactions.

Year ended March 31, 2010 Year ended March 31, 2011

Composition ratio (%) Rate of change (%) Composition ratio (%) Rate of change (%)

23

SLIDE 27

(3) Securities

1. Trading Securities

(Yen in millions)

As of March 31, 2010 2,525,553

149,389

2,475,184

151,479

(Note)

2. Bonds held to maturity

(Yen in millions) Carrying amount shown on consolidated Fair value Difference Carrying amount shown on consolidated Fair value Difference Carrying amount shown on consolidated balance sheet Valuation differences recognized on statement of income As of March 31, 2010 As of March 31, 2011 As of March 31, 2011 As of March 31, 2010 As of March 31, 2011 Carrying amount shown on consolidated balance sheet Valuation differences recognized on statement of income Amount of negotiable deposits (carrying amount on the consolidated balance sheet: 1,088 million yen; valuation differences recognized on the consolidated statement of income: 0 million yen) which is included in "Cash and bank deposits" in the consolidated balance sheet is included. In addition, amount of commercial paper, etc. (carrying amount on the consolidated balance sheet: 3,714 million yen, valuation differences recognized

n the consolidated statement of income: -29 million yen) which is

included in "Monetary receivables bought" in the consolidated balance sheet is included. Amount of negotiable deposits (carrying amount on the consolidated balance sheet: 1,525 million yen, valuation differences recognized on the consolidated statement of income: 0 million yen) which is included in "Cash and bank deposits" in the consolidated balance sheet is included. Trading Securities consolidated balance sheet consolidated balance sheet Bonds 736,920 770,485 33,564 938,400 987,243 48,843 Foreign securities 11,256 11,409 152 17,338 17,758 419 Subtotal 748,177 781,894 33,716 955,739 1,005,002 49,262 Bonds 875,348 829,980

45,368

1,061,657 1,009,174

52,482

Foreign securities 12,773 12,306

467

5,973 5,677

296

Subtotal 888,122 842,286

45,835

1,067,630 1,014,852

52,778

Total 1,636,299 1,624,181

12,118

2,023,370 2,019,854

3,516
3. Bonds earmarked for underwriting reserves

(Yen in millions) Carrying amount shown on consolidated balance sheet Fair value Difference Carrying amount shown on consolidated balance sheet Fair value Difference Bonds 102,867 106,649 3,781 115,358 120,185 4,826 Foreign securities 195,758 204,632 8,873 126,119 132,707 6,587 Subtotal 298,626 311,281 12,655 241,478 252,892 11,413 Bonds 13,499 13,403

95

4,930 4,854

76

Foreign securities 13,568 12,883

685

8,805 8,416

389

Subtotal 27,067 26,287

780

13,735 13,270

465

Total 325,694 337,568 11,874 255,214 266,162 10,948 Those with fair value not exceeding the carrying amount Those with fair value exceeding the carrying amount Those with fair value not exceeding the carrying amount Those with fair value exceeding the carrying amount As of March 31, 2010 As of March 31, 2011

24

SLIDE 28

4. Other securities (available for sale)

(Yen in millions) As of March 31, 2010 As of March 31, 2011 Bonds 3,005,660 2,934,178 71,481 2,957,002 2,869,720 87,282 Shares 2,451,431 905,669 1,545,761 1,977,933 754,891 1,223,042 Foreign securities 780,850 704,959 75,891 770,269 691,434 78,835 Others (Note 2) 151,334 132,884 18,449 132,629 119,370 13,258 Sub-total 6,389,277 4,677,693 1,711,584 5,837,835 4,435,416 1,402,418 Bonds 935,543 958,899

23,356

811,212 838,390

27,178

Shares 128,146 140,618

12,472

160,000 182,007

22,007

Foreign securities 405,580 430,371

24,790

420,279 452,512

32,233

Others (Note 3) 1,316,000 1,336,864

20,864

1,034,865 1,039,801

4,936

Sub-total 2,785,271 2,866,754

81,483

2,426,357 2,512,712

86,355

Total 9,174,548 7,544,447 1,630,100 8,264,192 6,948,129 1,316,063 (Note) 1. 1. 2. 2. 3. 3. "Others" includes negotiable deposits (carrying amount on the consolidated balance sheet: 74,496 million yen; original cost: 74,496 million yen) which are included in "Cash and bank deposits" in the consolidated balance sheet. In addition, "Others" includes commercial paper, etc. (carrying amount on the consolidated balance sheet: 953,358 million yen; original cost: 957,489 million yen; difference; -4,131 million yen) which are included in "Monetary receivables bought" in the consolidated balance sheet Other securities for which it is difficult to ascertain fair value are not included in the above table. Carrying amount shown on consolidated balance sheet Original cost Difference Other securities for which it is difficult to ascertain fair value are not included in the above table. As of March 31, 2011 "Others" includes foreign-mortgage and other securities (carrying amount

n the consolidated balance sheet: 127,311 million yen; original cost:

114,860 million yen; difference: 12,451 million yen) which are included in "Monetary receivables bought" in the consolidated balance sheet. Difference Carrying amount shown on consolidated balance sheet Original cost Those with carrying amount exceeding the

riginal cost

Those with carrying amount not exceeding the

riginal cost

"Others" includes foreign-mortgage and other securities (carrying amount

n the consolidated balance sheet: 141,147 million yen; original cost:

124,504 million yen; difference: 16,643 million yen) which are included in "Monetary receivables bought" in the consolidated balance sheet. As of March 31, 2010 "Others" includes negotiable deposits (carrying amount on the consolidated balance sheet: 113,091 million yen; original cost: 113,091 million yen) which are included in "Cash and bank deposits" in the consolidated balance sheet. In addition, "Others" includes commercial paper, etc. (carrying amount on the consolidated balance sheet: 1,194,310 million yen; original cost: 1,214,092 million yen; difference; -19,782 million yen) which are included in "Monetary receivables bought" in the consolidated balance sheet

5. Bonds held to maturity that were sold

None.

6. Bonds earmarked for policy reserve that were sold

(Yen in millions) Bonds 5,348 226 1 4,160 207 Foreign securities 7,190

719

6,007

1,016

Total 12,539 226 721 10,167 207 1,016

7. Other securities (available for sale) that were sold

(Yen in millions) Bonds 326,376 2,820 749 843,203 15,782 5,225 Shares 111,208 57,374 2,879 194,972 108,982 2,771 Foreign securities 646,393 16,304 7,344 414,621 11,961 4,097 Others 67,121 3,782 634 145,928 6,684 6,630 Total 1,151,100 80,281 11,608 1,598,726 143,411 18,724 (Note) Year ended March 31, 2010 "Others" includes negotiable deposits (sale value: 31,719 million yen) which are included in "Cash and bank deposits" and foreign- mortgage and other securities (sale value: 110,550 million yen; gains on sale: 6,172 million yen; losses on sales: 6,045 million yen) which are included in "Monetary receivables bought" in the consolidated balance sheet. Year ended March 31, 2011 Total of profit on sale Total of loss on sale "Others" includes commercial paper, etc. (sale value: 57,497 million yen; gains on sale: 1,362 million yen; losses on sale: 551 million yen), which are included in "Monetary receivables bought" in the consolidated balance sheet. consolidated balance sheet. Sale value Year ended March 31, 2011 Sale value Year ended March 31, 2010 Year ended March 31, 2011 Total of profit on sale Sale value Total of loss on sale Total of profit on sale Total of loss on sale Sale value Total of profit on sale Total of loss on sale Year ended March 31, 2010 consolidated balance sheet.

25

SLIDE 29

8. Securities for which impairment losses were recognized

Year ended March 31, 2010 Year ended March 31, 2011 For the fiscal year ended March 31, 2010, impairment losses amounting to 28,746 million yen (securities with fair value: 6,682 million yen; securities for which are difficult to ascertain fair value: 22,063 million yen) were recognized for "Other securities (available for sale)". These losses include impairment losses on foreign mortgage securities amounting to 16 million yen which are included in "Other investment expenses" in the consolidated statement of income. In principle, an impairment loss is recognized if at the end of the period the market value of a security has declined 30% or more from its book value. For the fiscal year ended March 31, 2011, impairment losses amounting to 24,564 million yen (securities with fair value: 23,085 million yen; securities for which are difficult to ascertain fair value: 1,479 million yen) were recognized for "Other securities (available for sale)". These losses include impairment losses on foreign mortgage securities amounting to 4 million yen which are included in "Other investment expenses" in the consolidated statement of income. In principle, an impairment loss is recognized if at the end of the period the market value of a security has declined 30% or more from its book value.

26

SLIDE 30

(4) Information on derivatives

1. Derivatives to which hedge transaction is not applied

(1) Foreign currency-related instruments

(Yen in millions) As of March 31, 2010 As of March 31, 2011 Over 1 year Over 1 year Over-the-counter transactions: Foreign exchange forwards 143,776 464

3,769
3,769

176,344

1,706
1,706

24,064

35

35 29,882

1,031
1,031

5,434

20

20 4,890

94
94

13,777

231
231

6,724

380
380

5,813

578
578

5,122

178
178

1,341

53

53

50,920
1,363

1,363 8,164

226

226 10,174

187
187

13,079

583

583 281

6

6 2,695

68

68 12,384

367

367 9,846

563

563 Currency swaps Pay Foreign/ Rec. Yen 605,381 441,232 6,814 6,814 413,478 244,677 13,753 13,753 9,535 8,033 940 940 3,818 2,481 798 798 836 640 43 43 447 447 17 17 Pay Yen/ Rec. Foreign Long EUR USD AUD EUR EUR Short USD Fair value AUD GBP JPY CAD Unrealized gains or losses Contract amount, etc. Fair value Unrealized gains or losses “Contract amount, etc.” as shown in the tables is the nominal contract or notional principal amount of derivative transactions. The amount itself does not represent the market or credit risk of such derivative transactions. USD AUD GBP Contract amount, etc.

27 215,086 158,194

10,350
10,350

157,060 116,203

25,031
25,031

6,291 6,291

915
915

2,481 2,481

741
741

627 627

39
39

434 434

14
14

Pay Foreign/ Rec. Foreign

616
60

60 Currency options Short USD 37,709 27,785 44,812 31,939 3,318 2,806 3,155 162 4,936 4,120 4,198 738 AUD 95

USD

46,504 35,314 49,758 36,078 3,169 2,752 5,212

2,042

5,022 4,007 7,503

2,481

Long USD 55,389 48,619 42,666 29,252 4,138 3,737 4,837 699 3,521 2,567 2,821

699

AUD 82

USD

53,307 45,681 45,681 30,572 4,253 3,873 8,434 4,180 3,443 2,588 9,105 5,662 Total

15,212
3,428
10,524
9,884

(Notes)

2. The fair value of currency options is based on an option pricing model.
3. For currency options, option premiums are shown beneath the contract amount of the options.

USD Put Pay USD/ Rec. SGD Call Put AUD Call

1. The fair values of the foreign exchange forwards and currency swaps are calculated by discounting future cash flows to the present values.

EUR

27

SLIDE 31

(2) Interest rate-related instruments (Yen in millions) As of March 31, 2010 As of March 31, 2011 Over 1 year Over 1 year Market transactions: Interest futures Short 26,713

1
1

15,883

4
4

Long 13,711

3

3 160,000

1

1 Over-the-counter transactions: Interest options Short 49,957 34,912 37,231 25,000 734 607 107 626 595 434 53 542 17,000 16,000 13,000 12,000 445 445 741

295

445 393 1,182

736

Long 14,600 4,500 4,500

135

36

135

36

36

21,154 19,000 16,000 12,000 397 394 375

22

394 285 487 93 Interest rate swaps 3,886,269 3,146,046 121,301 121,301 3,227,382 2,450,231 128,951 128,951 4,161,353 3,213,860

105,171
105,171

3,708,935 2,579,326

111,307
111,307

462,375 452,917 12,735 12,735 384,298 372,152 3,313 3,313 44,610 44,610

589
589

43,655 43,655 237 237 Total

29,502

28,452

22,913

21,052 Fair value Unrealized gains or losses Cap Contract amount, etc.

Rec. fix/Pay fix

Swaption

Rec. fix/Pay float

Swaption

Rec. float/ Pay float
Rec. float/Pay fix

Cap Unrealized gains or losses Contract amount, etc. Fair value

28 (Notes)

1. The fair value of the interest futures at the closing date of the fiscal year is based on the closing price at major stock exchanges.
2. The fair value of interest options is based on an option pricing model.
3. For interest options, option premiums are shown beneath the contract amount of the options.
4. The fair value of the interest rate swaps is calculated by discounting future cash flows to the present value based on the interest

rate as of the closing date of the fiscal year or on the price obtained from counterparties such as financial institutions.

28

SLIDE 32

(3) Equity-related instruments (Yen in millions) As of March 31, 2010 As of March 31, 2011 Over 1 year Over 1 year Market transactions: Equity index futures Short 17,165

434
434

15,688

158
158

Long 1,634

72

72 2,452

1
1

Over-the-counter transactions: Equity index options Long Put 22,175 17,624 17,624 12,982 5,272 4,260 8,501 3,228 4,260 3,159 7,698 3,438 Total

8,140

2,867

7,538

3,278 (Notes)

1. The fair value of the equity index futures as of the closing date of the fiscal year is based on the quoted final price at major stock

exchanges.

2. The fair value of equity index options is calculated based on the price obtained from counterparties such as financial institutions.
3. For equity index options, the option premiums are shown beneath the contract amount of the options.

(4) Bond-related instruments (Yen in millions) As of March 31, 2010 As of March 31, 2011 Over 1 year Over 1 year Market transactions: Fair value Unrealized gains or losses Contract amount, etc. Fair value Unrealized gains or losses Contract amount, etc. Contract amount, etc. Contract amount, etc. Unrealized gains or losses Fair value Fair value Unrealized gains or losses

29

Market transactions: Bond futures Short 11,611

51

51 11,300

52
52

Long 5,818

56
56
Short

Call 11,543

19
13

5

Put

2,494

9
13
4
Long

Call 2,494

7
3
3
Put

11,543

25
27

2

Total
53
4
52
52

(Notes) 1.

3. For bond over-the-counter options, the option premiums are shown beneath the contract amount of the options.

institutions.

Bond over-the-counter-options

Over-the-counter transactions: The fair value of the bond futures as of the closing date of the fiscal year is based on the closing price at major stock exchanges.

2. The fair value of the bond over-the-counter-options is calculated based on the price obtained from counterparties such as financial

29

SLIDE 33

(5) Credit-related instruments (Yen in millions) As of March 31, 2010 As of March 31, 2011 Over 1 year Over 1 year Over-the-counter transactions: Credit derivatives Sell protection 398 908 220 721

12 295
12 295

199 719 156 491

8 088
8 088

Contract amount, etc. Fair value Unrealized gains or losses Contract amount, etc. Unrealized gains or losses Fair value

30

Sell protection 398,908 220,721

12,295
12,295

199,719 156,491

8,088
8,088

Buy protection 42,118 40,821 389 389 35,423 34,923

59
59

Total

11,905
11,905
8,147
8,147

(Notes) The fair value of the credit derivative as of the closing date of the fiscal year is calculated based on the internal pricing model. (6) Commodity-related instruments (Yen in millions) As of March 31 2010 As of March 31 2011 As of March 31, 2010 As of March 31, 2011 Over 1 year Over 1 year Over-the-counter transactions: Commodity options Short Cap

76
12
2

9 Contract amount, etc. Fair value Unrealized gains or losses Contract amount, etc. Unrealized gains or losses Fair value

12
2

9 Long Cap

76
10
2
7

Commodity swaps

Rec. fixed price/ Pay commodity indexes

20,351 20,351

8,393
8,393

15,990 15,533

6,292
6,292
Rec. Commodity indexes/ Pay fixed price

22,046 22,046 7,152 7,152 17,280 16,775 5,368 5,368

Rec. Commodity indexes/ Pay variable indexes

8,664 8,664

414
414

6,582 6,170

416
416

Total

1,656
1,656
1,336
1,339

(Notes)

1. The fair values of the commodity options and the commodity swaps as of the closing date of the fiscal year are calculated based on the internal pricing model.
2. For commodity options, the option premiums are shown beneath the contract amount of the options.

(7) Others (Yen in millions) As of March 31, 2010 As of March 31, 2011 Over 1 year Over 1 year Contract amount, etc. Fair value Unrealized gains or losses Contract amount, etc. Fair value Unrealized gains or losses Over 1 year Over 1 year Over-the-counter transactions: Index basket options Long 162,544 162,544 166,478 166,478 7,520 7,520 24,081 16,560 10,098 10,098 30,488 20,389 Natural disaster derivatives Short 9,583 321 12,216 386 285 12 264 21 869 9 630 239 amount, etc. gains or losses amount, etc. gains or losses Long 28,953

28,815
4,939
2,777
2,162

3,847

2,188
1,658

Weather derivatives Short 16

115

3

1

1 Others Short 123 123 123 123 6 6 6

6

6 6

Total
27,129

14,419

33,316

18,972 Total 27,129 14,419 33,316 18,972 (Notes) 1. 2. 3. 4. 5. The fair value of the index basket option is calculated based on the price obtained from counterparties such as financial institutions. The option premiums of index basket options, natural disaster derivatives, weather derivatives and other options are shown beneath the contract amount of the options. The fair value of natural disaster derivatives is calculated based on the internal pricing model on fair value and options premiums. The fair value of weather derivatives is calculated based on the weather condition, term of the contract and other components of the contracts relating to the weather derivatives. The fair value of other derivatives is calculated based on options premiums.

30

SLIDE 34

2. Derivatives transaction to which hedge transaction is applied

(1) Foreign currency-related instruments

(Yen in millions) Over 1 year Over 1 year Deferred hedge Currency swaps Pay Yen/ Rec. Foreign Borrowing 5,000 5,000

46

5,000 5,000

154

Fair value hedge Foreign exchange forwards Other securities 101,921

2,660

76,179

515

(available 65,592

576

49,758

2,242

for sale) 7,893

154

14,220

382
2,586
30

Currency swaps Pay Foreign/ Rec. Yen Other securities 20,393 20,393 2,968 7,578 7,578 1,758 (available 5,890 2,030 828

for sale)

16,824 16,824

427

16,824 16,824

588

Foreign exchange forwards Short USD 20,003

(Note 2)

10,000

(Note 2)

AUD 5,005

5,002
239
2,156

(Notes)

1. The fair values of currency swaps and foreign exchange forwards are calculated by discounting future cash flows to the present values.

CAD Total Matching treatment (forward transaction, etc.) As of March 31, 2010 Object Cash and bank deposits As of March 31, 2011 Contract amount, etc. Fair value Fair value EUR GBP USD AUD EUR Short USD USD Contract amount, etc.

31 2. (2) Interest rate-related instruments (Yen in millions) Over 1 year Over 1 year Deferred hedge Interest rate swaps Insurance liabilities 438,700 438,700 12,729 431,100 405,100 17,751

12,729
17,751

(Notes) Contract amount, etc. Fair value The fair value of foreign exchange forwards which is integrally accounted with hedged items is included in the fair value of bank deposits. Object As of March 31, 2010 As of March 31, 2011 Contract amount, etc. The fair value of the interest rate swaps is calculated by discounting future cash flows to the present value based on the interest rate as of the closing date of the fiscal year. Total

Rec. fix/Pay float