Tokio Marine Holdings, Inc

Tokio Marine Holdings, Inc. Holdings, Marine Tokio

Annual Report 2008 Annual Report 2008 Report Annual

http://www.tokiomarinehd.com/

“Tokio Marine Holdings Annual Report 2008” Uses FSC Approved Paper The raw material of the Forest Stewardship Council (FSC) approved paper used in this annual report is lumber harvested from forests that have been properly managed and grown according to the afforestation-nurturing-deforestation cycle. The forest from which this paper comes was grown with its surrounding eco-system taken into full consideration. In this annual report we have used this eco-friendly FSC-approved paper as a result of our desire to support the preserva-

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TokioMarineH_08AR表紙0920.indd 1 08.9.26 5:39:56 PM Kunio Ishihara Chairman Shuzo Sumi President

With customer trust at the base of all of its activities, Tokio Marine Holdings seeks to ensure the appropriate disclosure of company information by demonstrating business operations with high level of fairness and transparency while pursuing the drastic business renovation of the entire Tokio Marine Group. “Tokio Marine Holdings Annual Report 2008” describes the current management status of the Group including the business results for the year ended March 31, 2008. We hope this report will help you understand Tokio Marine Holdings and its group companies.

Corporate Symbol The dynamic helicoid-shaped fi gure represents innovation and creativity to anticipate the future, while gently embracing and supporting our customers and the earth. Tokyo Kaijo Nichido Building Shinkan, 2-1,Marunouchi 1-chome, This logo expresses our wish to prosper and grow on a global scale together with our customers. Chiyoda-ku, Tokyo 100-0005, Japan To the logo, we applied a gold color, which symbolizes the preciousness of humankind and the earth. We also applied blue to the helicoid-shaped fi gure, the color conveying such meanings as intelligence, cleverness, affi nity, and the future. phone: Tokyo 81-3-6212-3333 http://www.tokiomarinehd.com/ WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836

TokioMarineH_08AR表紙0920.indd 2 08.9.26 5:39:58 PM Introduction Management Performance Corporate Data b2f92b7f-c93a-43ff-9e40-23504b4f6836 - WorldReginfo 1 2008 2 1 ata t D ce on n i n e a m e and Investor Relations 34 m o p r o Change in Key Business Indicators (Consolidated basis) 38 Financial Information 39 Information 92 C rate Perfor Message from the President 2 the President Message from 4 Topics Manage 8 Tokio Marine Group of the Profile Business Strategy Corporate Data 105 Facilities Marine Group History of the Tokio Contents Introduct Results Summary 14 31, 2008 16 Ended March Business Report for the Fiscal Year 19 Basic Policies for Internal Controls Corporate Governance 21 Compliance 23 Risk Management 28 Internal Audits 30 3 Corporate Social Responsibility Policy Information Management 32 Disclosur Annual Report Annual Holdings Marine Tokio Introduction

Message from the President

Shuzo Sumi President

The Tokio Marine Group seeks to meet our corporate social prevent payment omissions by improving their internal sys- responsibilities by, as set forth in the “Tokio Marine Group tems, including their claim payment system. Corporate Philosophy,” emphasizing “customer trust at the The Tokio Marine Group would like to offer our sincerest base of all activities” and through strict compliance to this in apologies to our customers and any related parties that were all aspects of our businesses. affected by these incidents in our domestic insurance business. In accordance with our commitment to preventing a Commitment to Regaining Customer Trust recurrence of such incidents and to regaining customer Our domestic insurance business is a core business of the trust, Tokio Marine Holdings will manage all subsidiaries Tokio Marine Group. Tokio Marine & Nichido and Nisshin more attentively, by fully monitoring all subsidiaries and by Fire, two of our domestic insurance businesses, received assessing the improvement progress of all subsidiaries in a administrative orders in connection with various improper timely manner. nonpayment of insurance claims. Based on our business improvement plans submitted in April of last year to the Aiming to Achieve a Level of Quality of Product and Service Financial Services Agency of Japan in response to such that will be Selected by Customers orders, the Tokio Marine Group is committed to improving Business environments keep changing. Customers are and supporting the management of claim payments and to increasingly inclined to select their favorite companies confirming, and revising when necessary, the details of based on the quality of a company’s product and service. insurance policies so as to ensure proper business opera- The Tokio Marine Group intends to achieve, in all its busi- tions. Tokio Marine & Nichido Life and Tokio Marine & nesses, a quality of product and service that meets custom- Nichido Financial Life, two other domestic insurance busi- ers’ expectations. All Tokio Marine Group companies are nesses of the Tokio Marine Group, have made efforts to making efforts to offer a level of quality that will fully satisfy our customers. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 Tokio Marine Group P By providing customers with the highest quality products and services, we will spread safety and security to all Corporate Philosophy around us. The Tokio Marine Group is committed to the con- P For fulfilling our responsibility to shareholders, we will tinuous enhancement of corporate value, with pursue global development of sound, growing and customer trust at the base of all of its activities. profitable businesses. P For promoting the creativity of each and every employee, we will foster a corporate culture which encourages free and open communications. P While demonstrating responsible management as a good corporate citizen, we will make a positive contribution to society.

With respect to our domestic and overseas insurance businesses, financial businesses and other general businesses related to safety and security, each Tokio Marine Group company intends to achieve a level of quality of product and service that customers would expect from international top-tier company and the Tokio Marine Group intends to be a corporate group that is selected because of such quality. With a focus on being a corporate group that is valued in society, the Tokio Marine Group aims to enhance growth potential and profitability through continuous efforts to win appreciation and support from our customers.

Off to a Fresh Start Effective as of July 1, 2008, we have changed our name from Millea Holdings, Inc. to Tokio Marine Holdings, Inc. Under the widely recognized “Tokio Marine” brand, we will strive to further advance the growth strategies of the entire July 2008 group on a worldwide basis and are committed to continually enhancing our corporate value.

Shuzo Sumi President WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 Introduction

Topics

Tokio Marine & Nichido Risk Consulting Co., Ltd. Made into a Subsidiary, Launch of Environmental Activity Support Services Tokio Marine Millea Holdings made Tokio Marine & Nichido Risk Consulting Holdings Co., Ltd., a Tokio Marine Nichido Group company, into a subsidiary on October 19, 2007. Previously, Tokio Marine & Change in Company Name to Tokio Marine Holdings, Inc. Nichido Risk Consulting was subject to restrictions on business Millea Holdings, Inc. changed its name to Tokio Marine activities due to limitations on business scope under the Holdings, Inc. on July 1, 2008. We aim to enhance our corpo- Insurance Business Law; however, as a subsidiary of Millea rate value and pursue the Group growth strategies under the Holdings, it is now able to engage in a broader range of Tokio Marine brand name, which has long enjoyed world- business activities. wide recognition. Tokio Marine & Nichido Risk Consulting has extensive experience in researching laws and regulations concerning the environment in Japan and abroad. Drawing on this experience, on November 16, 2007, it launched consulting and support services for corporate environmental activities covering a broad range of services to help companies execute their environ- Nihon Kousei Kyousaikai, Co., Ltd. Became a Subsidiary of Millea mental initiatives. Holdings and Changed Its Name On January 21, 2008, Millea Holdings invested in Nihon Kousei Start of Quarterly Reporting Kyousaikai, an insurer specializing in fire insurance for rental Pursuant to the newly enacted Financial Instruments and housing, making it a subsidiary and changing its name to Exchange Law, companies are required to report quarterly Millea Nihon Kosei SS Insurance Co., Ltd. results and publish quarterly reports from fiscal 2008 onwards. We are pushing forward with initiatives to ensure Prior to this enactment, Millea Holdings had started to publish sound business management in the field of fire insurance for the summary of quarterly results from fiscal 2006 in accordance rental housing. with the Tokyo Stock Exchange requirement for listed companies. As the implementation of systems designed for quarterly financial reporting completes, Millea Holdings has started to publish quarterly results including balance sheets and statements of income from fiscal 2007. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 Transfer of American Depositary Receipts (ADRs) from NASDAQ Establishment of Middle East-Based Service Company in Dubai to the U.S. OTC Market In a first for a Japanese insurance company, on November 6, On July 26, 2007, Millea Holdings voluntarily terminated the 2007, our subsidiary Tokio Marine & Nichido established Tokio listing of its American Depositary Receipts (the “ADRs”) on the Marine Middle East Limited (TMME) in Dubai, the international NASDAQ and arranged for its ADRs to trade on the U.S. over- financial center of the United Arab Emirates. We will work to the-counter (“OTC”) market. Since their first issuance in 1963, strengthen our management structure in the Middle East, which the ADRs of Millea Holdings have trades in the United States. In is expected to achieve sustained and steady economic growth, recent years, however, while the overseas investor base of by providing such services as Takaful through TMME to Group Millea Holdings has been expanding, a large majority of the companies in the region. trading volume of Millea Holdings’ shares results from trading of Millea Holdings’ common stock on the Tokyo Stock Exchange. Acquisition of Kiln Ltd in the United Kingdom Trading volume of ADRs, in contrast, has accounted for approxi- Subsidiary Tokio Marine & Nichido made Kiln Ltd, a leading mately 2%, on average, of the Millea Holdings’ total trading U.K.-listed member of Lloyd’s insurance group, a wholly owned volume. In addition to this, the costs to continue financial report- subsidiary on March 10, 2008. Kiln is a global and prestigious ing both under Japanese and the U.S. GAAP was considered to insurance group with well-known and one of the largest of overweigh the benefits of maintaining a listing of its ADRs on Lloyd’s managing agents in terms of underwriting capacity. It NASDAQ, such as the flexibility to raise funds in the United has a particularly strong track record of product development States. Accordingly, Millea Holdings concluded that it would be and disciplined underwriting in commercial insurance. The Tokio prudent to terminate its listing and arrange for its ADRs to trade Marine Group and Kiln will jointly explore new avenues of busi- on the over-the-counter market in the United States. ness development and strategies while leveraging Kiln’s business foundation in the Lloyd’s market as a stepping stone for the further development of the Group’s overseas insurance operations. Ultimately, we aim to increase corporate value while expanding earnings in the overseas insurance business.

Group Companies

Establishment of a Takaful Company in Egypt Our subsidiary Tokio Marine & Nichido Fire Insurance Co., Ltd. and Egypt Kuwait Holding Company, S.A.E. established a joint venture Takaful company in Egypt on December 10, 2007, aiming to start operations during fiscal 2008. Takaful is an insurance system prevalent in Islamic countries, that enables participants to reap the economic benefits of insurance, such as loss compensation, death and illness coverage and mutual assistance, while abiding by the rules and regulations of Islamic law, which prohibit excessive uncertainty, gambling and interest income. Millea Holdings was one of the first major insurance companies to engage in Takaful operations and has built up a staff of excellent personnel and extensive experience in underwriting in the Middle Eastern and Asian regions. We believe we can provide services to our customers in the region superior to any our competitors. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 Tokyo Marine Holdings

Topics

Formulating a Comprehensive Program to The 100th Anniversary of Prevent Global Warming Nisshin Fire & Marine Insurance Co., Ltd. On November 12, 2007, Tokio Marine & Nichido Fire Insurance July 1, 2008 marks the 100th anniversary of Nisshin Fire & Co., Ltd., a subsidiary of Tokio Marine Holdings, Inc., Marine Insurance Co., Ltd., a subsidiary of Tokio Marine announced “A Comprehensive Program to Prevent Global Holdings. With gratitude for 100 years of support from Warming.” As a nonlife insurance company that provides customers and related parties, the Company will commemorate “safety and security,” Tokio Marine & Nichido Fire Insurance its 100th anniversary in various ways, including by publishing Co., Ltd. developed “eco-friendly automobile insurance,” and a 100-year history of the company, undertaking a joint R&D now sells an environment fund and conducts research on major project with Kyushu University and sponsoring a photo- natural disasters through industry and university collaboration. graphic contest. In addition, the Company is playing an active role in preventing Nisshin Fire & Marine Insurance will solidify its position in and reducing global warming through environmental education the retail market as it seeks to become the number one player and social contributions including the “Declaration of Mangrove in the nonlife insurance industry in terms of customer-oriented Reforestation for 100 Years” and the establishment of the service. Recreating itself through a shift from the “nonlife insur- “Tokio Marine Nichido Environmental Grand Prize for Children.” ance industry” to the “nonlife insurance service industry,” Nisshin Fire & Marine Insurance will reexamine its various Contributing Support for the Pink Ribbon Movement services from the customer’s point of view. Tokio Marine & Nichido Life Insurance Co., Ltd., a subsidiary of Tokio Marine Holdings, contributed to the purchase of a breast cancer checkup vehicle with mammography equipment as a part of its efforts to support the Pink Ribbon Movement, which has been under way since 2005, by donating ¥17.5 million to the nonprofit organization J.POSH (Japan Breast Cancer Pink Ribbon Movement). J.POSH added these funds to the J.POSH Pink Ribbon Fund and purchased one breast cancer checkup vehicle equipped with mammography equipment that it donated to Kanagawa Prefecture. The donated breast cancer checkup vehicle—wrapped in paper covered with pictures of pink ribbons, smiling faces and images of dreams drawn by children—is being used throughout Kanagawa Prefecture. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 Management

Profile of the Tokio Marine Group 8 ManagementBusiness Strategy 12 Results Summary 14 Business Report for the Fiscal Year Ended March 31, 2008 16

Basic Policies for Internal Control 19 Corporate Governance 21 Compliance 26 Risk Management 28 Internal Audits 30 Corporate Social Responsibility Policy 31 Information Management 32 Disclosure and Investor Relations 34 WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 Management

Profile of the Tokio Marine Group

Tokio Marine Holdings Business Description P Company Profile (As of July 1, 2008) Tokio Marine Holdings is responsible for establishing and overseeing Name: Tokio Marine Holdings, Inc. strategies for the entire group, managing the group’s capital, and Headquarters: Tokio Marine Nichido Building Shinkan, 9th preparing consolidated financial statements. In addition, the holding Floor 1-2-1 Marunouchi, Chiyoda-ku, company oversees subsidiaries to ensure that their compliance, inter- Tokyo, Japan nal auditing, risk management and other activities are consistent Telephone: 81-3-6212-3333 with the group’s basic policies. As the publicly owned company rep- Established: April 2, 2002 resenting the Tokio Marine Group, the holding company also han- Capital: ¥150 billion dles investor relations, public relations, and corporate social Number of Employees: 382 (As of March 31, 2008) responsibility for the group. Stock Exchange Listings: Tokyo Stock Exchange—1st Section; The holding company takes the lead in maximizing corporate Osaka Securities Exchange—1st Section value. One way is by establishing medium- and long-term strate- Main Business: Management of its subsidiaries as an insur- gies. The company also allocates resources to business fields with ance holding company, and the conduct of the best prospects for profitability and growth. Collectively, these business pertaining thereto activities drive constant reforms of the group’s business portfolio Website: http://www.tokiomarinehd.com/ and help capture synergies from the various businesses of subsidiaries

Companies in which Tokio Marine Holdings Is Directly Invested (As of July 1, 2008)

Tokio Marine & Nichido Fire Insurance Co., Ltd.

Nisshin Fire & Marine Insurance Co., Ltd.

Tokio Marine & Nichido Life Insurance Co., Ltd.

Tokio Marine & Nichido Financial Life Insurance Co., Ltd.

Millea Nihon Kosei SS Insurance Co., Ltd.

Tokio Marine & Nichido Anshin Consulting Co., Ltd.

Tokio Marine & Nichido Career Service Co., Ltd.

Tokio Marine & Nichido Samuel Co., Ltd. Tokio Marine Holdings, Inc. Tokio Marine & Nichido Facilities, Inc. (listed holding company) Tokio Marine & Nichido Medical Service Co., Ltd.

Tokio Marine & Nichido Risk Consulting Co., Ltd.

Millea Mondial Co., Ltd.

Tokio Marine Property Investment Management, Inc.

Tokio Marine Asia Pte. Ltd.

Tokio Marine Americas

Tokio Marine Bluebell Re

Tokio Marine Seguradora S.A. (Real Seguros S.A.) WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 Business Domains of the Tokio Marine Group and Main Group Companies [Risk consulting business] Tokio Marine & Nichido Risk Consulting Co., Ltd. [Comprehensive personnel services business] Tokio Marine & Nichido Career Service Co., Ltd. [Facility management business] Tokio Marine & Nichido Facilities, Inc. [Total healthcare consulting business] Tokio Marine & Nichido Fire Insurance Co., Ltd. Tokio Marine & Nichido Medical Service Co., Ltd. Nisshin Fire & Marine Insurance Co., Ltd. [Senior citizen-related business] Millea Nihon Kosei SS Insurance Co., Ltd. Tokio Marine & Nichido Samuel Co., Ltd. Tokio Marine & Nichido Better Life Service Co., Ltd. Tokio Marine & Nichido Life Insurance Co., Ltd. [Assistance business] Tokio Marine & Nichido Financial Life Insurance Co., Ltd. Millea Mondial Co., Ltd. Domestic Nonlife International Assistance Co., Ltd. [IT and support service business] Insurance Businesses Tokio Marine & Nichido Communications Co., Ltd.

[Insurance agent business] Tokio Marine & Nichido Anshin Consulting Co., Ltd., and others General Business Domestic Life Insurance Businesses Customers

Financial Business (Investment advisory and investment trust services) Overseas Insurance Business Tokio Marine Asset Management Co., Ltd. Tokio Marine Asia Pte. Ltd. (Private equity investment services) Tokio Marine Bluebell Re Tokio Marine Capital Co., Ltd. Tokio Marine Seguradora S.A. (Real Seguros S.A.) (Derivatives and securities services) Tokio Marine Americas Tokio Marine Financial Solutions Ltd. Tokio Marine Europe Insurance (Real estate investment advisory services) Tokio Marine Brasil Seguradora Tokio Marine Property Investment Management, Inc. Tokio Millennium Re Ltd. (Risk assessment services for trade credit insurance) Tokio Marine Global Tokio Marine & Nichido Atradius Credit Management Tokio Marine Global Re Ltd. (Investment advisory services) Tokio Marine Management, Inc. Tokio Marine Investment Services, Ltd. Tokio Marine & Nichido Fire Insurance Co., Ltd., and others Shanghai Branch Kiln Group, and others

Overseas Network

Overseas offices: Located in 303 cities in 36 countries and regions P Expatriate staff: 170 P Local staff: Approximately 13,000 Claims agents: Located in 250 countries and regions

(As of July 1, 2008. Number of local staff as of March 31, 2008) WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 Management

Profile of the Tokio Marine Group Main Insurance Business Companies

Tokio Marine & Nichido Fire Insurance Co., Ltd. In October 2004, Tokio Marine & Nichido Fire Insurance Co., Ltd. was founded as a leading company with unsurpassed strengths in the domestic non-life insurance industry following the merger of Tokio Marine and Nichido Fire, with their histories of 125 and 90 years, respectively. Tokio Marine & Nichido has several advantages in product/service development and risk consulting capabilities demonstrated by sound financial strength and a high degree of professionalism as well as a superior agency network, claims settlement service network and worldwide network and we properly manage our business from the customer’s point of view.

Company Profile (As of March 31, 2008) Established: August 1, 1879 Capital: ¥101.9 billion Net premiums written: ¥1,912.1 billion Total assets: ¥10,889.5 billion Number of employees: 15,263 Headquarters: 1-2-1, Marunouchi, Chiyoda-ku, Tokyo, Japan Telephone: 81-3-3212-6211 Website: http://www.tokiomarine-nichido.co.jp

Nisshin Fire & Marine Insurance Co., Ltd. A nonlife insurance company, this company operates primarily in the domestic retail market and conducts sales at the local level. Aiming to be the number one player in the nonlife insurance industry in terms of customer-oriented service, we are reexamin- ing our services from the customer’s point of view and making daily improvements such as the development of explanation tools for customers and the standardization of agency business. With July 2008 marking the 100th anniversary of the Company, Nisshin Fire & Marine Insurance will continue to deliver customer-oriented security and compensation with the goal of becoming the most trusted retail nonlife insurance company.

Company Profile (As of March 31, 2008) Established: June 10, 1908 Capital: ¥20.3 billion Net premiums written: ¥141.6 billion Total assets: ¥481.8 billion Number of employees: 2,745 Headquarters: 2-3 Kanda Surugadai, Chiyoda-ku, Tokyo, Japan Telephone: 81-3-3292-8000 Website: http://www.nisshinfire.co.jp/ WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 10 Tokio Marine & Nichido Life Insurance Co., Ltd. One of the insurance businesses that form the core businesses of the Tokio Marine Group, Tokio Marine & Nichido Life Insurance plays a key role in the domestic life insurance business. Opened for business in 1996, and having “customer-oriented life insurance business” as its basic policy, the Company has continued to grow at a pace that is among the highest in the life insurance industry by selling life insurance tailored to customer needs through its innovative products, agencies and Life Partners. Moving forward, we will accurately ascertain diverse customer needs and, with a will inspired by our “Second Foundation”, we will further innovate our business model as we seek to become “The insurance company most trusted in Japan by customers and agencies.”

Company Profile (As of March 31, 2008) Date of foundation: August 6, 1996 Capital: ¥55 billion Total policy amount in force (individual insurance + individual annuities): ¥14,739.7 billion Total assets: ¥2,504.3 billion Number of employees: 1,918 Headquarters: 5-3-16 Ginza, Chuo-ku, Tokyo, Japan Telephone: 81-3-5537-6555 Website: http://www.tmn-anshin.co.jp

Tokio Marine & Nichido Financial Life Insurance Co., Ltd. As a life insurance company specializing in variable products, Tokio Marine & Nichido Financial Life Insurance plays a vital role in the Tokio Marine Group and is working to achieve the vision described by the corporate philosophy of “providing an affluent and secure life through such businesses as variable annuities and variable universal life insurance and contributing to an affluent and comfortable society and economic progress.” Always placing customer trust at the base of all our activities, the Company is working to provide products that satisfy its customers and services from the customer’s point of view.

Company Profile (As of March 31, 2008) Date of foundation: August 13, 1996 Capital: ¥48 billion Total policy amount in force (individual insurance + individual annuities): ¥2,335.9 billion Total assets: ¥2,070.7 billion Number of employees: 339 Headquarters: ThinkPark Tower, 2-1-1, Osaki, Shinagawa-ku, Tokyo, Japan Telephone: 81-3-6420-4000 Website: http://www.tmn-financial.co.jp/ WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 11 Management

Business Strategy

Tokio Marine Holdings’ Business Strategy While focusing on bolstering risk management and ensuring The Tokio Marine Group aims to constantly improve the value of strict compliance, Tokio Marine Holdings will leverage its ability Group companies through consistent growth and development as a holding company to reallocate management resources in along with society. It strives to increase the value which is pro- order to build an optimal business portfolio with high profitabil- vided to customers and all other stakeholders through manage- ity, growth potential and capital efficiency. In this way, we aim ment based on corporate social responsibility (CSR) at Group to maximize the value of our Group as a whole. companies all over the world. Based on the current Group mid- term corporate strategy, Stage Expansion 2008, we aim to expand in strategic stages in the area of our products and services, sales networks and business regions. At the same time, we are making major reforms to our business processes and reinforcing the business foundations of the entire Group.

The Tokio Marine Group’s Medium- to Long-Term Business Strategy and Mid-term Corporate Strategy “Stage Expansion 2008” (1) Medium- to Long-Term Corporate Vision With the ultimate intent of restoring customer trust in the Tokio Marine Group, we seek to be a globally top-tier insurance group over the medium- to long-term. We will devote the collective strength of the entire group to promote safety and security around the world.

(2) Stage Expansion 2008 1. Stage expansion for strategy in the area of products and services, sales networks and regional businesses

Taking advantage of its holding company structure, the Tokio Marine Group aims to provide products and services Strategic business expansion of that meet the need of its customers by designing products and services that fit each customer, such as enhancing the products and services pre-accident prevention and post-accident care services and strengthening of peripheral services.

In light of the anticipated changes in the financial services market, including the full liberalization of over-the coun- Strategic business expansion of ter sales of insurance products at banks and the privatization of Japan Post, the Tokio Marine Group aims to estab- the sales channel lish sales channels that meet today’s customer needs, using precise market analysis and solid judgement.

The Tokio Marine Group aims to expand its local insurance business by responding to the particular needs of each Strategic business expansion of business region through careful product design, marketing strategy and strategic options, such as M&A, equity the region (global strategy) participations and business alliances.

2. Utilization of the Group’s collective strengths The Group, by effectively utilizing the allocation function of management resources achieved through the holding company structure, seeks to build an optimal business portfolio with high profitability, growth potential and capital efficiency. Through a Groupwide enhancement of marketing functions, the Group aims to provide products and services that best meet customer needs through various sales channels.

3. Improvement of capital efficiency The Group closely monitors and manages its capital and risks through an integrated risk management system with a quantitative and structured approach. In addition, the Group intends to allocate surplus capital to strategic and new businesses with high profitability and growth potential while aiming to realize adequate returns to shareholders, thereby improving its capital efficiency. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 12 Mid-term Corporate Strategy: FY 2006 - FY 2008

Domestic market Overseas market Groupwide marketing Comprehensive personnel services Facility management services Growth strategy based on strengthening the existing Risk consulting services Assistance services B.P.O. subsidiaries: Tokio Millennium Re, Tokio Marine Global Re, Health care for senior citizens Tokio Marine Global

Total Assist General business Reinsurance business

—Platform for all stages— Development strategy Business renovation project combined with organic growth and strategic options 401(k) (M&A, capital

Non-life insurance Super Bancassuarance investment/cooperation) insurance Third-sector market • Current targets: Maintain and enhance these Multi-channel markets strategy

Stage expansion of region

Life insurance Variable annuity Taiwan, Malaysia, Thailand

Stage expansion of sales channels Direct business

Stage expansion of products & services Brazil, Russia, India, China

Investment advisory Private equity • New targets Investment trust Entry into local markets

Derivatives Real estate investment Structured finance advisory Financial business

(3) Long-Term Strategy, Results and Targets in Stage Expansion 2008 Tokio Marine Holdings aims for an adjusted return on equity (ROE) of 8% or higher and to grow adjusted earnings by about 200% (from fiscal 2005 levels) within the next1 0 years.

Adjusted Earnings (Yen in billions) Business domain FY 2007 results FY 2006 results FY 2005 results FY 2008 projections Domestic non-life insurance 99.4 89.0 91.5 75.7 Tokio Marine & Nichido 100.2 88.1 90.8 74.9 Nisshin Fire (0.8) 0.8 0.7 0.1 Millea Nihon Kousei — — — 0.6 Domestic life insurance 15.1 48.2 34.6 37.7 Tokio Marine & Nichido Life 29.1 30.4 29.4 26.8 Tokio Marine & Nichido Financial Life (14.4) 17.7 5.2 10.8 Overseas insurance 29.7 28.6 7.7 31.7 Direct insurance 16.8 17.0 13.6 21.0 Reinsurance 16.5 12.3 (5.2) 11.9 Financial & General businesses (1.0) 3.8 4.9 1.2 Group total 143.2 169.7 138.7 146.5 Adjusted ROE 3.5% 3.8% 3.7% 4.1% Note: In order to capture and enhance the corporate value of the Tokio Marine Group, targeted earnings and ROE are based on “adjusted earnings,” which are calculated as follows: Definition of Adjusted Earnings (1) Property and casualty insurance business Adjusted earnings = Net income + Provision for catastrophe reserves + Provision for price fluctuation reserves - Gains (losses) from assets under asset liability management and interest rate swaps - Gains (losses) from stocks and properties - Other extraordinary items (all figures after tax) (2) Life insurance business Adjusted earnings = Increase in embedded value - Capital injections (for some life insurance companies, such as those in Brazil, adjusted earnings is calculated on the same basis as Other businesses below, with corporate expenses excluded from earnings) (3) Other businesses Adjusted earnings = net income as shown on the financial statements WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 13 Management

Results Summary

Overview of Fiscal 2007 Results up 31,404 million yen from the previous fiscal year, driving P For the fiscal year ended March 31, 2008, consolidated ordi- growth in ordinary profit and net income. Nisshin Fire had nary income declined 508,491 million yen from the previous an underwriting loss of 637 million yen, an improvement of fiscal year to 3,710,066 million yen, of which underwriting 6,151 million yen from the previous fiscal year, and its income made up 3,312,472 million yen. Ordinary expenses of ordinary profit and net income improved. 3,530,994 million yen mainly included underwriting expenses of 2,683,605 million yen. Ordinary profit rose by 11,029 mil- P In the life insurance business, Tokio Marine & Nichido Life lion yen to 179,071 million yen, and net income increased recorded 14,739,863 million yen in policies in force for indi- 15,751 million yen to 108,766 million yen. vidual insurances and annuity products, up from 13,792,338 million yen a year earlier. Tokio Marine & Nichido Financial P In the property and casualty insurance business, Tokio Marine Life’s policies in force totaled 2,335,997 million yen, higher & Nichido’s underwriting income totaled 39,376 million yen, than the 2,112,756 million yen last year.

Consolidated Business Results Fiscal 2007 Fiscal 2006 Difference (¥ million) (%) (¥ million) (%) (¥ million) Ordinary income 3,710,066 100.00 4,218,557 100.00 (508,491) Underwriting income 3,312,472 89.28 3,823,859 90.64 (511,386) Investment income 342,121 9.22 339,532 8.05 2,589 Other ordinary income 55,471 1.50 55,165 1.31 305 Ordinary expenses 3,530,994 95.17 4,050,515 96.02 (519,521) Underwriting expenses 2,683,605 72.33 3,562,253 84.44 (878,648) Investment expenses 326,884 8.81 17,135 0.41 309,748 Operating and general administrative expenses 482,160 13.00 446,851 10.59 35,308 Other ordinary expenses 38,344 1.03 24,274 0.58 14,070 Ordinary profit 179,071 4.83 168,042 3.98 11,029 Extraordinary gains 31,199 0.84 3,009 0.07 28,189 Extraordinary losses 35,683 0.96 29,172 0.69 6,511 Net income 108,766 2.93 93,014 2.20 15,751

Assets, Liabilities and Shareholders’ Equity (Consolidated) (Yen in millions) Fiscal 2007 Fiscal 2006 Difference Assets 17,283,242 17,226,952 56,289 Liabilities 14,703,902 13,816,245 887,656 Net assets 2,579,339 3,410,707 (831,367) Total liabilities and net assets 17,283,242 17,226,952 56,289 WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 14 Major Indicators for the Property and Casualty Insurance Business (Yen in millions, %) Tokio Marine & Nichido Nisshin Fire Fiscal 2007 Fiscal 2006 Fiscal 2007 Fiscal 2006 Profitability Net income 122,992 96,448 1,962 423 Ordinary profit 183,974 156,332 2,622 652 Loss ratio 61.6% 61.5% 61.4% 62.1% Expense ratio 31.5% 30.7% 37.1% 36.4% Combined ratio 93.1% 92.3% 98.5% 98.5% Underwriting balance ratio 6.9% 7.7% 1.5% 1.5% Underwriting profit 39,376 7,971 (637) (6,789) Soundness 2,326,624 3,076,887 86,549 118,278 Total net assets Solvency margin ratio 957.8% 1,098.2% 899.3% 1,012.6% Growth potential Change in net premiums written (0.8)% 1.9% (2.1)% 0.1% Scale Net premiums written 1,912,180 1,928,061 141,684 144,711 Direct premiums written (including deposit premiums from policyholders) 2,126,746 2,183,357 155,696 162,278 Notes: 1. Loss ratio = (Net claims paid + Loss adjustment expenses) ÷ Net premiums written 2. Expense ratio = (Agency commissions and brokerage + operating and general administrative expenses) ÷ Net premiums written 3. Combined ratio = Loss ratio + Expense ratio 4. Underwriting balance ratio= 100% − combined ratio 5. Solvency margin ratio • Property and casualty insurance companies maintain reserves for paying claims when events covered by insurance issued occur and for the payout of funds at maturity for savings-type insurance. It is also necessary for them to maintain sufficient resources to cover payments in the event of either a major disaster or an unexpected crisis, such as a major decline in the price of assets owned by an insurance company. • Calculated in accordance with the Insurance Business Law, the solvency margin ratio is an indicator that compares the claims payment ability provided by the capital and reserves owned by a property and casualty insurance company against the total amount of risk in a situation that exceeds expectations. 6. Net premiums written: Direct and assumed premiums written, less ceded insurance premiums 7. Direct net premiums written: Direct premiums, less canceled direct refunds and other direct refunds (including deposit premiums)

Major Indicators for the Life Insurance Business (Yen in millions, %) Tokio Marine & Nichido Life Tokio Marine & Nichido Financial Life Fiscal 2007 Fiscal 2006 Fiscal 2007 Fiscal 2006 Income from insurance and reinsurance premiums 407,697 406,217 518,869 1,162,690 Annualized new premiums 36,615 65,753 50,602 107,975 Ordinary profit 6,025 8,653 (6,422) (19,028) Net income 0 0 (6,478) (19,053) Core operating profit 427 1,761 (6,105) (4,998) Solvency margin ratio 2,766.7% 2,585.6% 1,157.5% 744.6% Policy amount in force 14,739,863 13,792,338 2,335,997 2,112,756 New policy amount 2,106,742 2,021,698 508,282 1,086,210 Notes: 1. Additional transfer 12,660 million yen (in fiscal 2006) and 19,822 million yen (in fiscal 2007) to Tokio Marine & Nichido Life’s policy reserves were made on top of its provisions to policy reserves calculated based on the five-year Zilmer method. These amounts were included in basic expenses (policy reserve provision) within core profits. 2. Annualized new premium: Annual premium calculated by dividing total paid premiums for the entire term of new policies for individual insurance and annuities by the number of years in the insurance term. 3. Core operating profit: An indicator of earnings potential in insurance operations, calculated by deducting gains on the sale of securities and other capital gains as well as one-time profits from ordinary profit. 4. Policy amount in force, new policy amount: Total of new policies and policies in force for individual insurances and individual annuities WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 15 Management

Business Report for the Fiscal Year Ended March 31, 2008 (From April 1, 2007 to March 31, 2008)

During the fiscal year ended March 31, 2008, while the Property and Casualty Insurance Business Japanese economy gradually expanded as corporate earnings Tokio Marine Holdings aims to improve the quality of its proper- generally remained at high levels, the business recovery stalled ty and casualty insurance business and solidify its continuous in the latter half of the fiscal year mainly because of a decrease profit expansion in this segment. in housing investment and a slowdown of the U.S. economy, To promote appropriate business practices, Tokio Marine & triggered by the subprime loans problem in the U.S. Nichido established the “Business Quality Improvement In the property and casualty insurance sector of the insur- Commission”, chaired by its President, and, in order to enhance ance industry, premiums decreased primarily because of lower its efforts for the improvement of the quality of its business sales volume of automobiles and fewer housing starts. In the life operations from the customers’ perspective, appointed two insurance sector of the insurance industry, the amount of newly members to the Commission to represent consumers in July signed life insurance policies continued to decrease partially due 2007. Tokio Marine & Nichido also established “Anshin Quality” to the declining birthrate and the aging of the society. Life and as a quality standard indispensable to providing insurance prod- non-life insurance companies in Japan continued their efforts to ucts and services to customers, and began to implement this regain the trust of customers, including efforts to prevent the standard on a company-wide basis so that from the customers’ recurrence of omissions of payment of insurance claims. perspective, it will be available in all business operations irre- In this environment, Tokio Marine & Nichido and Nisshin spective of time and location. Fire, which had received administrative orders (a suspension For several years, Tokio Marine & Nichido has steadily moved order regarding certain operations and a business improvement forward with preparations for the start of a new business reno- order) related to certain improper non-payment of insurance vation project, called “Drastic Reform of Business Process”, due claims, submitted Business Improvement Plans (the “Plans”) to to start in May 2008. This project aims to reform operational the Financial Services Agency of Japan in April 2007. Both com- processes from the perspective of customers as well as to panies took the administrative orders seriously, and have strived improve the platform of insurance products, operational rou- to enhance and reinforce their claims payment management tines and systems so that Tokio Marine & Nichido can carry out and confirm and correct the details of policies, in order to its duties, ranging from insurance solicitation to the payment of ensure proper operations in accordance with the Plans. Tokio claims, quickly, accurately and efficiently. The project is also an Marine & Nichido Life Insurance Co., Ltd. (“Tokio Marine & effort to establish an infrastructure to improve business quality. Nichido Life”) and Tokio Marine & Nichido Financial Life Insurance Co., Ltd. (“Tokio Marine & Nichido Financial Life”) Life Insurance Business have also made efforts to prevent the recurrence of payment Tokio Marine Holdings seeks to further expand the life insurance omissions by reinforcing systems such as the insurance claims business as a core business of the Tokio Marine Group by payment management system. Tokio Marine Holdings, Inc. strengthening its life insurance subsidiaries. (“Tokio Marine Holdings“or the “Company”), as the holding Since its establishment, Tokio Marine & Nichido Life has con- company overseeing the businesses of the entire group (the tinued to grow at a pace that is among the highest in the life “Tokio Marine Group”), has been committed to managing its insurance industry. Currently, Tokio Marine & Nichido Life is subsidiaries more attentively through a full assessment of their engaged in the “Second Foundation Project” and continuing to status and by monitoring their improvement in a timely manner. focus on the innovation of distribution channel strategies The Tokio Marine Group has been operating its businesses according to the market environment and the reform of opera- in accordance with its three-year plan named “Stage tional processes from the perspective of customers. In this proj- Expansion 2008,” which commenced in the fiscal year ended ect, Tokio Marine & Nichido Life is also focusing on combining March 31, 2007. the services of insurance and support to customers. As part of In the following sections, we present the activities of the these efforts, Tokio Marine & Nichido Life launched the “Cancer Tokio Marine Group and the results of the Tokio Marine Group’s Care-Support Insurance” in September 2007. core businesses during the fiscal year ended March 31, 2008. Tokio Marine & Nichido Financial Life is seeking to expand its sales network for variable annuity insurance, which is mainly distributed through over-the-counter sales at banks, by increasing business alliances with financial institutions. In an effort to WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 16 ensure stable sales of variable annuity insurance by Tokio Marine Tokio Marine & Nichido successively made active efforts to & Nichido Financial Life, Tokio Marine Bluebell Re Limited, a increase assets in corporate defined-contribution pension plans reinsurance subsidiary of the Company, started to accept rein- under its administration in the fiscal year ended March 31, surance for variable annuity insurance from the fiscal year 2008. The number of sponsors with assets under our adminis- ended March 31, 2008. tration, including those in preliminary agreements, amounted to more than 2,000, which is a top-level performance among plan Overseas Insurance Business administrators. Tokio Marine Holdings is continuously working to expand its As for other businesses, Tokio Marine Holdings aimed to cre- overseas insurance business by placing an emphasis on markets ate value primarily in business sectors related to safety and with attractive profitability and growth potential. security. We focused on medical and health services and risk Tokio Marine & Nichido acquired Kiln Ltd and made it a sub- consulting services in the fiscal year ended March 31, 2008. sidiary in March 2008. Kiln Ltd operates insurance businesses globally, primarily in Lloyd’s of the U.K. Net premiums written by Other Matters Kiln stood at 66.1 billion yen in 2007, with net income amount- Tokio Marine & Nichido established the “Comprehensive ing to 11.8 billion yen. Through the acquisition of Kiln, the Program Concerning Global Warming” in November 2007 to Tokio Marine Group expanded the scale of its operations and reinforce its efforts to help curb global warming. This program earnings in the overseas insurance business and established a adopted a new scheme under which, when policyholders of position as a major player in Lloyd’s of the U.K., one of the automobile insurance select a Web-based policy, Tokio Marine & world’s leading insurance markets. Nichido donates funds to plant two mangroves per policy. This Tokio Marine & Nichido is reinforcing its focus on the prom- program also supports research activities studying the influence ising Takaful (Islamic insurance) market. In the course of this of global warming on natural disasters, and a mangrove affores- process, it has established a local subsidiary company in Dubai tation project. which engages in the development of Takaful products. In addition, it has decided to set up another local subsidiary company Results for the Fiscal Year Ended March 31, 2008 in Egypt, which will serve as a base for its Takaful business. As a consequence of Tokio Marine Group’s efforts as described above, consolidated business results were as follows. Ordinary Asset Management, Financing Operations and Other Businesses income amounted to 3,710.0 billion yen, a decrease of 508.4 During the fiscal year ended March 31, 2008, Tokio Marine & billion yen from the previous fiscal year. The main components Nichido, which provides the core asset management function of ordinary income were underwriting income of 3,312.4 billion for the Tokio Marine Group, focused on the enhancement and yen and investment income of 342.1 billion yen. Ordinary development of risk management, as well as improvement on expenses were comprised mainly of underwriting expenses of investment returns. In order to meet the obligations for claims, 2,683.6 billion yen, investment expenses of 326.8 billion yen maturity refunds and other payments, Tokio Marine & Nichido and Operating and general administrative expenses of 482.1 bil- continued its efforts to strengthen its asset liability management lion yen. Total ordinary expenses amounted to 3,530.9 billion and to ensure the stability and liquidity of its assets. In the fiscal yen, a decrease of 519.5 billion yen from the previous fiscal year. year ended March 31, 2008, partially due to the turbulence of As a result of the above, ordinary profit increased by 11.0 the global financial markets in connection with the subprime billion yen, or 6.6 percent, to 179.0 billion yen. Net income, loan problem, Tokio Marine & Nichido and other group compa- comprised of ordinary profit plus extraordinary profit minus nies incurred losses including impairment losses of 2.1 billion extraordinary losses, income taxes and deferred income taxes, yen in total in subprime loan-related investments, and impair- was 108.7 billion yen for the fiscal year ended March 31, 2008, ment losses and other losses of 22.0 billion yen in credit risk- an increase of 15.7 billion yen, or 16.9 percent, from the previ- related investments other than subprime loan-related ous fiscal year. investments. On a non-consolidated basis, Tokio Marine Holdings received Tokio Marine Holdings took group-wide measures to expand business management fees amounting to 5.3 billion yen and div- its finance-related business, centered around the asset manage- idends totaling 69.4 billion yen from its subsidiaries and affili- ment business. This effort resulted in assets under the manage- ates, resulting in operating income of 74.7 billion yen, ordinary ment of Tokio Marine Asset Management Co., Ltd. exceeding profit of 69.9 billion yen and net income of 70.3 billion yen. 5 trillion yen in the fiscal year ended March 31, 2008. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 17 Management

Business Report for the Fiscal Year Ended March 31,2008

Operating Results of Primary Subsidiaries In light of these issues, under its management philosophy to The following results represent the operating results of Tokio place “customer trust at the base of all its activities”, the Tokio Marine & Nichido for the fiscal year ended March 31, 2008. Net Marine Group is determined to make all efforts to improve the premiums written were 1,912.1 billion yen, a decrease of 0.8 quality of all operational processes of the Tokio Marine Group, percent from the previous fiscal year, resulting primarily from with a particular focus on regaining the trust of its customers declines in sales of fire insurance and accident insurance. The and society. Tokio Marine Holdings, as a holding company, is loss ratio was 61.6 percent, almost unchanged from the previ- striving to emphasize to its subsidiaries the basic policies of the ous fiscal year. The expense ratio was 31.5 percent, an increase Tokio Marine Group with respect to risk management, compli- of 0.8 percent mainly as a result of an increase in expenses ance and customer protection, and to enhance internal audit, in relating to the promotion of improved operations. accordance with the “Basic Policies for Internal Control”. With respect to the operating results of Nisshin Fire for the The Tokio Marine Group is making great efforts to expand fiscal year ended March 31, 2008, net premiums written were its strategic stage in the areas of products and services, sales 141.6 billion yen, a year-on-year decrease of 2.1 percent, pri- channels and business regions, in line with “Stage Expansion marily resulting from a decrease in sales of fire insurance and 2008,” a three-year plan which will end in the fiscal year ending automobile insurance. The loss ratio was 61.4 percent, repre- March 31, 2009. The Tokio Marine Group will strive to further senting a decrease of 0.7 percent, primarily because the influ- advance the growth strategies of the entire group on a world- ence of natural disasters was minor. The expense ratio was 37.1 wide basis, taking advantage of the plan to change its company percent, an increase of 0.7 percent, mainly due to an increase in name to Tokio Marine Holdings, Inc. where it uses the name personnel for the reinforcement of the internal control system. “Tokio Marine”, which it believes to have world-wide recogni- As of March 31, 2008, Tokio Marine & Nichido Life achieved tion. Through these efforts, the Tokio Marine Group will commit solid growth and recorded 17,997.8 billion yen in the amount itself to continually enhancing the corporate value of the group. of life insurance-in-force, an increase of 907.9 billion yen from The entire Tokio Marine Group will endeavor to achieve fur- March 31, 2007, with the amount of newly signed life insur- ther growth as a corporate group, seeking growth characterized ance for the fiscal year ended March 31, 2008 was 2,163.8 bil- by high profitability, sustainability and soundness. lion yen, a year-on-year increase of 5.6 percent. Life Notes . Throughout this Business Report, all amounts (including numbers of shares) are truncated and all ratios are rounded. insurance-in-force and newly signed life insurance are respec- 2. The yen-denominated amounts of net premiums written and net income tively comprised of individual insurance, individual annuity and of Kiln are calculated at the exchange rate as of the end of December 2007. The net premiums written and net income of Kiln are not includ- group insurance. ed in the consolidated statement of income for the fiscal year ended As of March 31, 2008, Tokio Marine & Nichido Financial Life March 31, 2008, since the company became a consolidated subsidiary recorded 2,335.9 billion yen in the amount of life insurance-in- of Tokio Marine Holdings in March 2008. 3. As a result of the turbulence in the global financial markets 4.3 billion force, an increase of 223.2 billion yen from March 31, 2007, yen was recorded in connection with claim payments and insurance while the amount of newly signed life insurance for the fiscal reserves relating to financial guarantee reinsurances for the fiscal year ended March 31, 2008. These were not related to impairment losses or year ended March 31, 2008 was 508.2 billion yen, a decrease other losses attributable to credit risk-related investments or subprime of 53.2 percent from the previous fiscal year, when sales of indi- loan related investments mentioned above. vidual annuity insurance were robust. Life insurance-in-force and newly signed life insurance are respectively comprised of individual insurance and individual annuity.

Issues Facing the Tokio Marine Group In the fiscal year ending March 31, 2009, the Japanese economy, in the near term, is projected to continue to slow down, with downturn risks growing primarily because of the decelera- tion of the U.S. economy and the turbulence in the global financial markets. In the insurance industry, there is a continuing urgent need for insurance companies to focus on regaining the trust of customers and society. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 18 Basic Policies for Internal Controls

Basic Policies for Internal Controls (d) The Company shall establish reporting rules to be used in Tokio Marine Holdings, based on the Corporation Law and its the event of a violations of a law or internal rules by a enforcement regulations, operates internal control systems in subsidiary and, a part from the usual reporting route, set accordance with the following Basic Policies for Internal up hotlines (an internal whistle-blower system) within the Controls that were approved by its Board of Directors. Group while keeping the officers and employees of the Group companies informed as to the use of the system. 1. System for Ensuring That Business Operations within the Tokio (2) The Company shall establish the Group’s basic policy for Marine Group Are Appropriate responding to antisocial factions and groups, and respond, As a holding company presiding over the businesses of the in an organized and uncompromising manner and in associ- Group, Tokio Marine Holdings shall, as appropriate, exercise its ation with such professionals as lawyers and the police, to rights as a shareholder of its subsidiaries in a manner consistent antisocial factions and groups which threaten the order and with the goal of maximizing the Group’s corporate value. In safety of civil society. accordance with the “Tokio Marine Holdings, Inc. Group (3) The Company shall perform an effective internal audit using Company Management Policies,” the Company shall prescribe an internal audit division that is independent from other the Group’s business strategies and various basic policies that divisions. In addition, the Company shall establish the basic form the foundation of the Group’s business management. internal audit policies of the Group, require its subsidiaries to Furthermore, the Company shall enter into management agree- perform effective internal audits, monitor the implementa- ments with each subsidiary that include the identification of tion of the internal audit, the status of the internal controls important matters requiring the Company’s prior approval, such system and so forth and report the results thereof to the as the subsidiaries’ business strategies and plans, thereby Board of Directors. enabling the Company to manage the businesses of its subsidiaries. The management of indirectly owned subsidiaries shall 3. System Regarding Risk Management generally be conducted through their direct parent companies. (1) The Company shall formulate basic policies for risk management for the Group and require each subsidiary to carry out 2. System for Ensuring That Professional Duties Are Performed in its own risk management with respect to the operation of Accordance with the Laws and the Articles of Incorporation its business. (1) The Company shall establish the Group’s basic policy related (2) The Company shall perform risk management of the entire to the promotion of compliance and implement a system for Group by establishing a Risk Management Committee that ensuring compliance of the Group. deliberates on important matters concerning the risk man- (a) The Company shall formulate a Code of Conduct and agement of the Group, as well as by establishing a unit that ensure that the officers and the employees of the Group controls risk management, thereby capturing a sense of risk understand that top priority should be given to compli- levels across the entire Group. The fundamental processes ance in all phases of business activity with the Code of for carrying out risk management are risk identification, risk Conduct. evaluation, risk control, creation of a contingency plan and (b) The Company shall establish a division that oversees monitoring and reporting on risk management performance. compliance issues, as well as a Compliance Committee, The Company shall implement appropriate processes to discuss important issues regarding the promotion of depending on the type of business operations and the risk compliance within the Group. The Company shall also characteristics of a subsidiary and shall report on the status monitor progress toward compliance by the Group and of implementation of risk management to the Board of report the results thereof to the Board of Directors. Directors. (c) The Company shall require each of its subsidiaries to pre- (3) The Company shall formulate policies regarding integrated pare a compliance manual and provide training on laws risk management and perform quantitative risk management and internal rules that must be observed by the officers of the entire Group to maintain the Group’s credit rating and and employees of each subsidiary with a view toward to prevent bankruptcy. enhancing compliance. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 19 Management

4. System for Ensuring That Professional Duties Are Performed (b) Corporate auditors shall attend meetings of the Board of Efficiently Directors and other important meetings or committees, (1) The Company shall formulate a medium-term management such as the management meetings and express their plan and an annual plan for the Group (including numerical opinion. Furthermore, minutes of important meetings targets, etc.), monitor the status of plan implementation at and other important documents relating to decisions subsidiary levels and report the results thereof to the Board of approved by directors shall be provided to corporate audi- Directors. tors at any time upon request from corporate auditors. (2) The Company shall establish rules regarding the exercise of (c) Status of the hotline operation and important reporting authority in order to realize efficient business performance and consultation matters shall be reported regularly to by means of division of responsibilities and a chain of com- corporate auditors. mand. At the same time, the Company shall construct an (d) Directors and employees shall explain matters concerning appropriate organizational structure to achieve its business the operation of their businesses at any time upon purposes. request from corporate auditors. (2) Matters concerning employees assisting with the auditing 5. System for Protecting the Customers’ Interest duties of corporate auditors, including matters concerning The Company shall establish the Group’s basic policies for pro- such employees’ independence from directors tection of customers’ interests and implement a system for pro- (a) In order to assist corporate auditors in carrying out their tecting customers’ interest, thereby ensuring customer-oriented duties, the Company shall establish a secretariat under operations and the protection of customers’ interests. the direct control of corporate auditors. Upon request from corporate auditors, the Company shall assign full-time staff 6. System for Keeping and Managing Information with Respect who have the knowledge and ability to assist the audit. to Directors’ Performance of Duties (b) The staffs assigned to the secretariat of corporate audi- The Company shall establish rules on keeping and managing tors shall perform their assigned tasks ordered by corpo- documents and so forth. The minutes of important meetings, rate auditors and other work that is required to assist the other important documents and so forth, including information audit, and such staff shall have the right to collect the on the performance of directors’ duties, shall be properly kept necessary information. and managed in accordance with such rules. (c) The performance evaluation and transfer of and disciplinary action against such staff shall be carried out with the 7. System for Ensuring the Appropriateness and Reliability of approval of the standing corporate auditors. Financial Reporting (3) Coordination with corporate auditors of subsidiaries The Company shall establish the necessary system to ensure the Corporate auditors shall, based on audit standards and so forth, appropriateness and reliability of financial reporting of the request corporate auditors of subsidiaries to report regularly on Group, monitor the effectiveness of the system on a periodic important matters regarding their respective subsidiaries, such basis and report the results thereof to the Board of Directors. as the audit policy, audit status, audit results and so forth and shall endeavor to closely work with corporate auditors of sub- 8. System Regarding Audits by Corporate Auditors sidiaries in order to perform effective auditing. Additionally, cor- (1) System of reporting to corporate auditors porate auditors shall receive updates from directors or (a) Directors shall regularly report the status of manage- employees of subsidiaries on the status of their duties at the ment, financial condition, compliance, risk management, respective subsidiaries as necessary. internal audit and so forth to corporate auditors and when, in connection with execution of their functions, Adopted on May 2, 2006 they find any material violation of laws or internal rules Revised on December 17, 2007 or any other condition or fact that may cause consider- Revised on July 1, 2008 able damage to the Company, they shall immediately make a report thereof to corporate auditors. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 20 Corporate Governance

Corporate Governance Policies Tokio Marine Holdings corporate governance policies shall Tokio Marine Holdings, in line with the Tokio Marine Group be reviewed and amended as necessary to adapt to changes in Corporate Philosophy, is committed to the continual enhance- the business environment. ment of corporate value by fulfilling its responsibilities to shareholders, customers, society, employees and other stakeholders. For this purpose, the Company hereby establishes a sound and transparent corporate governance system and, as a holding company, aims to exercise appropriate control over the Tokio Marine Group companies.

I. Management Organization 3. Nomination Committee and Compensation Committee 1. The Board of Directors (1) Responsibilities of the Nomination and Compensation (1) Responsibilities of the Board of Directors and its Members Committees The Board of Directors is responsible for decisions on impor- The Company shall have a Nomination Committee and a tant matters relating to the execution of the Company’s busi- Compensation Committee to serve as advisory bodies to its ness, for supervising the performance of individual directors Board of Directors. and establishing an effective internal control system. In addi- The Nomination Committee shall deliberate on the following tion, as the Board of Directors of a holding company, it is matters and report to the Board of Directors: responsible for determining medium- to long-term business P The appointment and dismissal of directors and corporate strategies and various basic business policies for the Tokio auditors of the Company; Marine Group. P The appointment and dismissal of directors and corporate Each director shall endeavor to enable the Board of Directors auditors of the principal business subsidiaries* of the to fulfill these responsibilities and functions. Company; and (2) Composition of the Board of Directors P The criteria for the appointment of directors and corporate The number of directors shall generally be approximately ten auditors of the Company and its principal business subsid- members, of whom, as a general rule, at least three shall be iaries. outside directors. The Compensation Committee shall deliberate on the fol- (3) Directors’ Term of Office lowing matters and report to the Board of Directors: Directors shall be appointed for a term of office of one year. P Evaluation of the performance of directors of the Company; Directors may be reappointed. P Evaluation of the performance of directors of the principal 2. Corporate Auditors and the Board of Corporate Auditors business subsidiaries of the Company; and (1) Responsibilities of Corporate Auditors and the Board of P The compensation system for directors and corporate audi- Corporate Auditors tors of the Company and its principal business subsidiaries Corporate auditors, as an independent body entrusted by * The term “business subsidiary” refers to companies in which the shareholders, shall audit the performance of directors, with the Company directly holds a majority of the voting rights. aim to ensure sound and fair management and accountability. (2) Composition of Nomination and Compensation Committees Corporate auditors shall endeavor to conduct a high-quality The Nomination Committee and the Compensation audit in accordance with the regulations of the Board of Committee shall generally each consist of approximately five Corporate Auditors, auditing standards, auditing policies and members. As a general rule, a majority of the members of auditing plans determined by the Board of Corporate each committee shall be selected from outside the Company, Auditors. and the chairman of each committee shall be one of the outside members. (2) Composition of the Board of Corporate Auditors The number of corporate auditors shall generally be around five. As a general rule, a majority of the corporate auditors shall be outside corporate auditors. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 21 Management

Corporate Governance

II. Compensation System for Directors and Corporate Auditors of III. Corporate Governance of Subsidiaries the Tokio Marine Group (1) Governance System Compensation(1) of Directors and Corporate Auditors of the In its “Basic Policies for Internal Control,” the Company shall Company prescribe basic terms for the management of the business Compensation for full-time directors consists of three ele- subsidiaries, systems relating to the promotion of compliance, ments: fixed compensation; bonuses related to the business risk management and internal auditing of the Tokio Marine performance of the Company and the performance of the Group, and the Company shall manage its subsidiaries individual; and stock options. through the establishment and operation of a governance Compensation for corporate auditors and part-time direc- system based on these basic terms. tors consists of two elements: fixed compensation and stock (2) Evaluation of Business Results of the Business Subsidiaries options. The Company shall evaluate the business results of each busi- (2) Compensation of Directors and Corporate Auditors of ness subsidiary of the Tokio Marine Group on an annual Principal Business Subsidiaries basis, comparing actual results with previously determined The compensation system for directors and corporate audi- business results indices. The results of such evaluations shall tors of the Company’s principal business subsidiaries shall be considered in the determination of the compensation for generally be identical to that applied to directors and corpo- the directors of each business subsidiary. rate auditors of the Company. Adopted on May 27, 2005 Revised on July 5, 2007 Revised on December 17, 2007 Revised on July 1, 2008 The Board of Directors of Tokio Marine Holdings, Inc. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 22 Compliance

The Tokio Marine Group’s Compliance Policy Tokio Marine Group Code of Conduct Declaration of Commitment to Compliance The Tokio Marine Group Code of Conduct sets forth ethical The Tokio Marine Group is committed to the continuous standards that are essential for translating its corporate philoso- enhancement of its corporate value, with customer trust at the phy into action, and shall be prioritized in all aspects of our base of all its activities. Strict compliance is at the heart of our business operations and activities. corporate philosophy. The Tokio Marine Group Code of Conduct We, the directors, officers and employees (including tempo- is a compilation of important matters that must be strictly rary staff members) of the Tokio Marine Group companies, shall observed. We, the directors, officers and employees of the Tokio obey applicable laws, rules and regulations and internal rules Marine Group companies, promise to prioritize compliance in and conduct fair and equitable business activities within social the conduct of business activities in accordance with the Code norms. In order to conduct our business in a fair manner, we of Conduct. shall strive to understand the applicable rules and fully comply Shuzo Sumi with them. President Non-compliance with this Code of Conduct, applicable laws, rules and regulations and internal rules are subject to appropriate action, including investigation, corrective action, reporting to the supervising authorities, disciplinary action against parties concerned and measures against recurrence, in accordance with the internal rules of each Tokio Marine Group company.

Basic Principles

1. Compliance 1-5 Insider Trading We shall comply with applicable laws, rules and regulations We shall not buy or sell securities of any company while in and internal rules, engage in free and fair competition and con- possession of material, nonpublic information (known as “inside duct fair and equitable business activities in conformity with information”) regarding the subject company in violation of secu- social norms. rities related laws, rules or regulations. This rule applies not only 1-1 Compliance to the securities of Tokio Marine Holdings, Inc. but also to those We shall strictly comply with applicable laws, rules and regula- of other companies. Without authorization, we shall not pass tions and internal rules. inside information to any other person. 1-2 International Rules and Local Laws 1-6 Intellectual Properties The rules which we must obey are not restricted to those applica- We shall respect and not infringe upon intellectual property rights ble in Japan. We shall obey international rules and local laws, of third parties, including copyrights, trademarks and patents. rules and regulations in the countries where Tokio Marine Group 1-7 Working Environment companies operate. We shall also respect the traditions and cul- We shall comply with labor-related laws, rules and regulations tures in such countries. and maintain a safe and proper working environment. 1-3 Free and Fair Competition We shall conduct our business in compliance with antitrust, competition and free trade laws. We shall not undertake any action that hampers free and fair competition, including collusion and cartel formation. We shall abstain from any act falling under “unfair trade practices” such as overreaching. We shall be mind- ful of regulations applicable to the activities of trade associations. 1-4 Conflicts of Interest We shall not tolerate any action pursuing our personal or a third party’s interests against our respective company’s legitimate interests. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 23 Management

Compliance

2. Social and Political Issues 3-4 Confidential Information We shall maintain proper conduct in social and political activities. In accordance with applicable internal rules, we shall protect the 2-1 Anti-social Forces confidentiality of nonpublic information and not disclose such If we succumb to anti-social forces, including, but not limited to, information to anyone who is not authorized to receive it. In criminal organizations, sokaiya (professional extortionists at addition, we shall not use any such information for the benefit of shareholders’ meeting) or terrorist groups, it would result in anyone other than Tokio Marine Group companies. encouraging anti-social activities. In full recognition of our social responsibility, we, together with all Tokio Marine Group compa- 4. Respect for Human Rights and the Environment nies, shall maintain a firm stand against all anti-social forces, and We shall respect the human rights of our customers, directors, we shall strive to prevent money laundering by endeavoring to officers, employees and all other people, and respect the global thoroughly identify transaction parties and by responding appro- environment in all of our activities. priately to transactions in which we suspect criminal involvement. 4-1 Anti-discrimination 2-2 Political Activities, Political Funding Human rights are values widely recognized around the world, We shall comply with applicable laws, rules and regulations and any discrimination on grounds of sex, age, profession, regarding public elections, political activities as well as political nationality, race, thought, creed, religion, social status or birth as funds and donations, and we shall always maintain our posture well as any act constituting an infringement of human rights toward fairness. should never be tolerated. 2-3 Gifts and Entertainment 4-2 Anti-harassment We shall not accept money, goods and other inappropriate or Sexual or any other kind of harassment or intimidation should unlawful profits by taking advantage of our position. Also, we never be tolerated. shall not accept or give any gifts or entertainment which are ille- 4-3 Private Information gal or not considered reasonable by social standards. In compliance with applicable laws, rules and regulations as well as the Tokio Marine Group Privacy Policy, we shall safeguard pri- 3. Appropriate Actions of and High Transparency in Management vate information, including customers’ information, and we shall We shall take appropriate management actions and strive to real- not use such information except on a need basis to carry out our ize a high standard of transparency in our management. business operations, in order to avoid any breach of privacy. 3-1 Appropriate Transaction 4-4 Protection of the Global Environment We shall maintain sound relationships with clients and engage in Acknowledging that the protection of the global environment is appropriate and fair transactions. an important responsibility, we shall comply with applicable laws, 3-2 Public Disclosure rules and regulations, and respect the harmonization with and An appropriate disclosure of management information is very the improvement of the global environment in all of our activities. important from the view point of enhancing customer trust. We intend to enhance our shareholders’, investors’ and customers’ understanding of our management. We shall make full, fair, accurate, timely and understandable disclosure of information, including, but not limited to, information included in reports and documents that Tokio Marine Holdings, Inc. files with or submits to any regulatory bodies and in other public communications made by Tokio Marine Holdings, Inc. 3-3 Accurate Information For the purpose of a full, fair, accurate, timely and understandable disclosure of information, all records, data and information owned, used and managed by us should be accurate and complete. We shall cooperate fully with any appropriately authorized internal and external auditing and inspection. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 24 The Applicable Laws, Rules, Regulations and Internal Rules Reporting This Code of Conduct is not intended to cover every issue or situ- In the case of non-compliance (including doubtful cases) with this ation we may face in our business activities. Please refer to the Code of Conduct, applicable laws, rules and regulations or inter- respective compliance manual of each Tokio Marine Group com- nal rules, we, the directors, offi cers and employees (including pany in order to understand the applicable laws, rules and regula- temporary staff members) of the Tokio Marine Group companies, tions as well as the standing internal rules. shall make a prompt report or consultation in accordance with the applicable internal rules. If, for any reason, it is not appropriate to make use of the regular reporting system, please contact one of the hotlines, including the external hotline (assigned law fi rm). The reporter will not be treated disadvantageously because of his or her report. Furthermore, private information of the reporter shall be handled responsibly. The details of this mechanism are described in the respective compliance manual of each Tokio Marine Group company. Compliance Department of Tokio Marine Holdings, Inc. is responsible for administration of the Tokio Marine Group Code of Conduct. Please contact this department with any inquiries related to the Code of Conduct. Changes to this Code of Conduct must be approved by the Board of Directors of Tokio Marine Holdings, Inc. Any waiver or amendment of the Code of Conduct for directors or offi cers of Tokio Marine Holdings, Inc. must be also approved by the Board of Directors of Tokio Marine Holdings, Inc. Any such change or waiver will be promptly disclosed.

Adopted on September 8, 2003 Revised on July , 2008 WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 25 Management

Compliance

Tokio Marine Group’s Compliance System 2. Promoting Compliance at Group Companies The Tokio Marine Group engages in business in strict accor- Based on the “Basic Policy for the Promotion of Compliance” dance with applicable laws, rules and regulations. The Group drawn up by Tokio Marine Holdings, the Group subsidiaries defines compliance as the faithful and proper pursuit of corpo- establish their own compliance promotion systems tailored to rate activities within the bounds of social norms while strictly their individual businesses, and, if they have subsidiaries, those adhering to laws, regulations and the internal rules. The Tokio subsidiaries also manage their own compliance. The subsidiaries Marine Group Code of Conduct clarifies our stance on compli- make organizational efforts to ensure strict compliance by ance and defines the matters that the directors, officers and establishing a department responsible for compliance promo- employees of the Group must follow. All of them are supplied tion and a compliance committee which monitors the progress with a copy of the Tokio Marine Group Code of Conduct. of compliance and also by assigning staff members in charge of compliance or managers responsible for compliance at depart- 1. Role of Tokio Marine Holdings ments and branch offices as deemed necessary. It is our basic principle that each Group company should make a The system, framework and important compliance rules that self-directed effort to promote compliance in accordance with must be adhered to have been compiled into compliance manu- tactics appropriate to the scale and types of business it handles. als by each subsidiary and are made available to its directors, Tokio Marine Holdings aims to enhance compliance officers and employees for reference. In addition, they have throughout the entire Group. To this end, we have drawn up been making efforts to apply those rules thoroughly and get the groupwide measures by establishing the “Basic Policy for the awareness of compliance to take root deeply in the corporate Promotion of Compliance” which stipulates the roles of Tokio culture by clarifying such rules in manuals prepared according to Marine Holdings and important points in pursuing strict compli- the types of business in the respective subsidiaries and by hold- ance. ing compliance training and seminars for their directors, officers The “Compliance Minimum Standards,” distributed to the and employees. subsidiaries, set out the policies, frameworks and rules that are From the perspective of ensuring strict compliance through- the bases for compliance in the Tokio Marine Group. The sub- out the Group, subsidiaries are committed to systematically pro- sidiaries apply these standards as the minimum requirement for moting compliance by making effective plans appropriate to their compliance programs, augmenting them in accordance their respective situations and implementing measures approved with their respective types of business. by Tokio Marine Holdings, in accordance with the Tokio Marine In addition, as a system to ensure strict compliance in the Group’s Code of Conduct and “Basic Policy for the Promotion entire Group, Tokio Marine Holdings periodically monitors the of Compliance.” The effectiveness of these measures is moni- status of compliance within the Group. If any important matters tored through the combination of the subsidiaries’ voluntary are reported from subsidiaries, decisions on such matters are inspections and internal audits. The monitoring results are made by the Compliance Committee and the Board of Directors reflected in implementation plans for the subsequent years. after deliberation and then instructions and guidance regarding the Group companies’ business activities will be given to them as deemed necessary. We periodically hold Compliance Meetings with the members responsible for compliance at Tokio Marine Holdings and each subsidiary in order to share information affecting all companies and propose groupwide measures. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 26 Management Strict Compliance

Tokio Marine Holdings

Corporate Auditors Board of Corporate Auditors Board of Directors Compliance Committee

Compliance Department

Indication of basic policies, guidance/supervision/ administration/ Internal audit Reports monitoring

Group Companies

Board of Directors Corporate Auditors (Board of Corporate Auditors)

Compliance Committee, etc. (organization based on each company’s situation)

Compliance Department

Hotline System (internal reporting system) Response to Anti-social Forces The Tokio Marine Group has established internal and external 1. Tokio Marine Group companies shall resolutely resist all anti- hotlines to handle reports from, and provide consultation to, social forces, in line with the following basic concepts: the directors, officers and employees of the Group companies (1) At all times, the Tokio Marine Group shall endeavor, in whenever a compliance-related issue arises or is feared to arise. concert with all companies of the Group, to take the We also maintain a hotline to an external legal office which we most appropriate actions to avoid all relationships with have made available for use to all people for the purpose of anti-social forces and will forcefully repudiate any illicit reporting and consulting on issues of concern. demands made by them. This is a basic principle of our All information received via the hotline is kept strictly confi- corporate philosophy of “demonstrating responsible dential to ensure that reporting parties need not fear being management as a good corporate citizen and making a treated unfairly, for example, by being subject to dismissal, sala- positive contribution to society.” ry reduction or demotion, due to the act of reporting. (2) The group companies shall take the following actions against anti-social forces: 1. Take action as a unified organization while ensuring the safety of directors, officers and employees; 2. Contact relevant external institutions (specialized in such matters); 3. Sever all known relationships, including transactions; 4. Take legal action at either the civil or criminal level; and 5. Prohibit backroom deals and access to capital

2. In line with the above basic policy, the Tokio Marine Group shall proceed with its initiatives to update its code of conduct and manuals, give training to the members of the Group, establish controlling departments and promote efforts to col-

lect information about anti-social forces. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 27 Management

Risk Management

Risk Management System of the Tokio Marine Group Furthermore, in respect of office work risk, system risk and Tokio Marine Holdings tracks the state of risk for the entire other such risks accompanying business activities, actions are group, and assumes the role of overseeing group-wide risk taken to identify these risks and to work to prevent or mitigate management In respect of insurance underwriting risk and them through appropriate risk management, to ensure stable investment risk (market risk, credit risk and real estate invest- business management ment risk), Tokio Marine Holdings sees these as core risks related to its source of earnings that it must control, and manages such risks proactively.

Tokio Marine Holdings Risk Management Department Insurance underwriting risk Board of Directors Management Meeting Market risk Core risk Credit risk Real estate investment risk

Liquidity risk Office work risk Corporate Auditors Risk Management Committee System risk Associated risk Information leakage risk Board of Corporate Auditors Legal risk Reputational risk Other risk

Indication of policies, guidance/supervision/ administration/ Reporting monitoring

Subsidiaries

1. Role of Tokio Marine Holdings (1) Basic Policy for Risk Management Tokio Marine Holdings maintains the basic policies governing Basic Policy for Risk Management for the Tokio Marine Group risk management and advances risk management structures for sets forth the matters that must be reported, the organiza- the entire Group. Tokio Marine Holdings also manages quantita- tions and guidelines for risk management to be taken by tive risks for the Group in order to maintain credit ratings and subsidiaries, defines risks, and describes risk management prevent bankruptcies. control departments. Subsidiaries manage risks based on this policy. 2. Role of Subsidiaries (2) Basic Policy for Integrated Risk Management Based on the “Basic Policy of Group risk management”,the The Tokio Marine Group has developed Basic Policy for Group Subsidiaries establish its own risk management policies Integrated Risk Management that establishes the fundamen- and actively conduct risk management of its own as well as its tal matters concerning the quantitative risk management of subsidiaries. the entire Group, definition of risks and returns, scrutiny process for risk planning and monitoring. 3. Basic Policies for Risk Management (3) Basic Policy for Crisis Management The Tokio Marine Group has created the following basic policy The Tokio Marine Group has developed Basic Policy for Crisis for risk management. Tokio Marine Holdings and its subsidiaries Management of the entire Group that clarifies the chain of com- manage risks in line with these policies. mand in the event of an emergency, measure to minimize the damage and responses to the recovery of ordinary business operations. Subsidiaries also maintain their own systems for crisis management established in accordance with the basic policies. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 28 4. Integrated Risk Management 5. Capital allocation system The main purpose of integrated risk management is to properly Capital Allocation System has been designed to assess the prof- control risks, create the ability to keep losses within capital itability against capital allocated to each business unit of the when risks emerge, and quantitatively analyze all risks. Tokio Marine Group and to maximize the corporate value of the (1) Risk Quantification: Expected Shortfalls Tokio Marine Group through the capital reallocation. The Tokio Marine Group quantifies potential losses on all risks Under this system, capital is identified “as pseudo-capital,” that could arise within certain time frames and that could based on a risk volume calculated as a uniform gauge of all exceed certain confidence levels. A risk indicator called types of risk. The capital allocation system and integrated risk “Expected Shortfall” is used as the risk quantification meth- management are intricately related and they are based on the od. An expected shortfall may also refer to as conditional same risk evaluation methods. value at risk (CVaR) or tail VaR (T-VaR). (1) Formulation of Capital Allocation Plan (2) Determination of Allowable Risk Parameters Tokio Marine Group allocates capital to each business unit in Integrated risk management aims to maintain credit ratings accordance with plans created each fiscal year. Operations in and prevent bankruptcy by keeping risks within allowable each business unit conduct business and take risks that are parameters. The allowable risk parameter for the Tokio appropriate to the amount of the capital that has been allo- Marine Group as a whole has been defined in terms of an cated. upper limit on the quantity of risk. We determine this allow- (2) Evaluation of Risk/Return and Improvement of Business Portfolio able risk quantity every fiscal year, and manage operations so Using certain management benchmarks, the level of risk/ that risk quantity does not exceed this limit. return is evaluated for operations in each business unit. (3) Evaluation and Monitoring of Capital Allocation Plans Based on this, capital is reallocated to business units with Tokio Marine Holdings ensures that the expected risk volume higher profitability and growth potential and new business. is within the allowable risk parameters set out in the Group The introduction of a decision-making process based on the capital allocation plan. In other words, the Risk Management quantitative analysis method enables us to select business Department which plays an internal control function checks units that should be focused on at more detailed level. and examines that the capital allocation plans are appropriate Through this approach, we will seek to increase return on to the shareholders’ equity. Moreover, the status of risk vol- equity (ROE) of the entire Group and maximize the corporate ume is periodically reviewed. value while continuing to increase earnings.

Risk Diversification and Risk Indicators

Probability density

99% expected shortfall Average loss if a risk occurs once in 100 years VaR (99%) For 99 of 100 years, 1% losses do not exceed risk quantity

Loss WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 29 Management

Internal Audits

Internal Audit Framework of Tokio Marine Group Within Tokio Marine Group, internal audits are executed based on the purpose that “in order to play an effective role in achiev- ing our management targets, internal audits covering the full scope of operations performed in our business should not sim- ply uncover and highlight issues found within internal office processes, but also include evaluations and highlight issues regarding our internal management framework, and propose methods of improvement.” Within Tokio Marine Holdings and its insurance subsidiaries, each company has its own specialized internal audit section, that performs internal audits accounting for types of risk and risk levels within the “Risk Management Framework” and a ”Compliance Promotion Framework,” which make up the key pillars of risk management. For other subsidiaries which have no specialized internal audit department, Tokio Marine Holdings’internal audit section directly carries out audits, and performs monitoring of the internal audit management framework. The results of these audits are reported to the internal audit department of Tokio Marine Holdings, as well as the Board of Directors of each member company of the group. Based on the audit findings, a report is submitted to the Board of Directors of Tokio Marine Holdings in the event that serious issues are uncovered.

Consistent Internal Auditing Framework as a Group A set of unified “Internal Audit Policies” and “Internal Audit Rules”are applied to all internal audits performed by specialized internal audit sections within group companies, in order to maintain consistency among all internal audits. In addition, Tokio Marine Holdings defines key points and issues to be taken up each year, and works towards construction of a consistent internal auditing framework throughout the group through such measures as pre-approving subsidiary’s annual internal audit plans.

Joint Audit In order to raise the effectiveness of internal audits, there are also cases where the internal audit departments of each subsidiary work together. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 30 Corporate Social Responsibility Policy

The Tokio Marine Group’s Approach to CSR Participation in the United Nations Global Compact The Tokio Marine Group considers that the execution of its Tokio Marine Holdings has been participating in the United Corporate Philosophy itself is equal to the fulfillment of CSR. Nations Global Compact since 2005 because the concept and The Group’s goal is to increase the value it provides every stake- the content of the Global Compact agree with its approach to holder and, as a result, to increase its corporate value which is CSR initiatives and its CSR Charter. In the future as well, the the sum total of the value it provides all stakeholders, through Tokio Marine Group will seek to implement activities complying the thorough implementation of CSR practices. It has estab- with the Global Compact’s ten principles in the areas of human lished the “Tokio Marine Group CSR Charter” as a set of behav- rights, labor, the environment, and anti-corruption. ioral guidelines for such implementation of CSR practices.

Tokio Marine Group CSR Charter The Tokio Marine Group is committed to fulfilling its corporate social responsibilities (CSR) by implementing its management philosophy to achieve sustainable growth together with the development of society, in accordance with the following principles: P Products and Services – We aim to provide the society with products and services to CSR Promotion Structure meet its needs for safety and security. The Tokio Marine Group has established the “CSR Board” P Respect for Human Rights and Dignity chaired by the President of Tokio Marine Holdings and with a – We respect and actively promote the recognition of human membership consisting of the Presidents (CSR Supervisors) of rights. the Group member companies. This Board formulates funda- – We strive to ensure an energetic working environment that mental policies and plans for CSR initiatives and monitors prog- is both safe and healthy and to promote training and educa- ress in these initiatives. Each Group member company promotes tion of our employees. its own CSR initiatives and those of its subsidiaries in accor- – We respect the right to privacy and strive to enforce sound dance with the policies and plans formulated by the CSR Board. information management and control. In addition, Tokio Marine & Nichido has established the CSR P Protection of the Global Environment Office to serve as an organ specialized in the promotion of CSR, – Acknowledging that the protection of the global environ- as well as the “CSR Committee”, under its Board of Directors. ment is an important responsibility for all corporate entities, These organizations work to share information between depart- we respect the harmonization with and the improvement of ments/sections involved in CSR initiatives as well as to strength- the global environment in all of our activities. en and promote related efforts. P Contribution to Communities and Societies The Tokio Marine Group’s CSR Promotion Structure – As a member of various communities and societies, we respect the diversity of cultures and customs and we aim to Tokio Marine Holdings Board of Directors (Management Meeting) contribute actively to the needs of the current era. CSR Board P Compliance Corporate Planning Dept – While striving to maintain high ethical standards at all times, we will pursue strict compliance in all aspects of our business Tokio Marine & Nichido Group Companies activities. (other than Tokio Marine & Nichido) Board of Directors P Communication (Management Meeting) Board of Directors (Management Meeting) – We intend to disclose information timely and appropriately CSR Committee

and to promote dialogue with all our stakeholders to ensure Corporate Planning Dept., CSR Office CSR Dept. effective corporate management. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 31 Management

Information Management

Tokio Marine Group’s Information Security Management Tokio Marine Holdings’ Privacy Policy In accordance with the internal rules at each company based on With customer trust at the base of all its activities, the Company the Personal Information Protection Law and related guidelines, is committed to the continuous enhancement of its corporate the Tokio Marine Group has been making every effort to ensure value, through planning the management strategy of the whole the thorough management of information by training its employ- Tokio Marine Group and managing the subsidiaries. The ees and monitoring the situation of its information security. Company properly handles personal information as described below in compliance with the Personal Information Protection Tokio Marine Group’s Privacy Policy Law (the “Law”), other relevant laws, ordinances and guidelines The Tokio Marine Group is committed to the continuous and the Tokio Marine Group Privacy Policy, and takes appropri- enhancement of its corporate value, with customer trust at the ate measures to ensure that personal information is secure. The base of all its activities. Guided by this corporate philosophy, Company will conduct thorough training and education of its we, the Tokio Marine Group, shall comply with all laws, rules, employees for the proper handling of personal information. The regulations and guidelines related to the protection of personal Company will review and improve the content described below information, appropriately manage personal information as from time to time: described below and implement other appropriate security measures to protect the personal information of our customers. 1. Acquisition of Personal Information The Company shall acquire customers’ personal information 1. We shall acquire the personal information of our customers in a lawful and equitable manner to the extent necessary for in a manner that is both lawful and equitable. Except in its business; cases prescribed by law, rules or regulations, we shall notify 2. Purpose of the Use of Personal Information or publicize the purposes of using personal information of The Company shall give notice or make a public announce- our customers and shall use such information within the ment of the Purpose of the Use of customers’ personal infor- scope of such purposes. mation, and shall use such information within the scope of 2. Except in cases prescribed by law, rules or regulations, we the purposes provided for in the Purpose of the Use unless shall not provide the personal information of our customers otherwise provided in the relevant laws and/or ordinances; to third parties without the prior consent of each such customer. 3. Provision of Personal Data to Third Parties 3. We shall strive to prevent the divulgence, destruction or The Company shall not provide customers’ personal data to a impairment of, as well as unauthorized access to, the per- third party without the prior consent of each such customer sonal information of our customers. When we outsource the unless required under laws, rules and regulations or for the management of the personal information of our customers, purpose of sharing such personal data with the Group we shall exercise necessary and appropriate supervision over Companies or affiliated companies of the Company (Please the company trusted with such management. refer to the subsequent paragraph 4. “Sharing of personal 4. Whenever we receive requests from our customers to view data with the Company’s Group Companies and affiliated or update their personal information we hold, we shall companies”); respond to them promptly in accordance with laws, rules 4. Sharing of personal data with the Company’s Group and regulations. We would also welcome our customers’ Companies and affiliated companies comments and inquiries about our management of the per- The Company and other companies of the Tokio Marine sonal information of our customers. Group may share and use customers’ personal data among 5. We shall exercise supervision over, or give guidance and them for purposes of business management as follows: training to, our employees who handle the personal infor- Personal Data to be used: mation of our customers to ensure that such information is - Address managed appropriately. - Name 6. We shall continue our efforts to review and improve our - The Company’s shares held internal systems and measures for protecting the personal Entity responsible for the management of personal data: information of our customers. Tokio Marine Holdings, Inc. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 32 5. Handling of Sensitive Information 8. Contact office The Company shall not collect, use, or provide to a third The Company will respond immediately and appropriately to party Sensitive Information, including, but not limited to, the any complaints or consultation regarding the handling of per- state of health or medical history of its customers, except in sonal information. cases provided for by the Law, other relevant laws, ordinanc- Please address all your inquiries and consultation regard- es and guidelines. ing the Company’s handling of personal information or per- Note: “Sensitive Information” means sensitive information set forth in Article 6 sonal data kept by the Company to the following contact of the Guidelines for the Protection of Personal Information in the Financial Industry. office: 6. Notification, disclosure, amendment, suspension of use, etc. Contact Office: Compliance Dept. of personal information held by the Company under the Tokio Marine Holdings, Inc Personal Information Protection Law Tel 0120-789-967 For any inquiries related to the above, please refer to the sub- (Business hours: 9:00 to 17:00 excluding sequent paragraph 8 “Contact office.” Saturdays, Sundays, holidays and during After ascertaining the identity of the person who made the year-end and the New Year holidays) such inquiries, Tokio Marine Holdings will ask him/her to fill 9. List of companies in its designated form and will send him/her a reply later in The Company’s group companies and business partners writing, in principle, subject to fees prescribed by the described in the above paragraph 4. “Sharing of personal Company. data with the Company’s Group Companies and affiliated 7. Management of Personal Data companies” are as follows: The Company shall take sufficient measures for securing the Group Companies safety of the kept personal data against their divulgence, loss Please see here. http://www.tokiomarinehd.com/en/group/ or damage, and shall make efforts to keep them correct and index.html updated in order to meet the purposes of using them. Business Partners Further, in cases where the management of personal data is At the present time, the Company does not provide personal outsourced, the Company shall exercise necessary and appro- data to any affiliated companies. Note: The above-mentioned Privacy Policy does not apply to the personal infor- priate supervision over the company trusted with such man- mation of people working in the Company. agement by checking its information management system and monitoring its performance of business after the outsourcing contract has taken effect. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 33 Management

Disclosure and Investor Relations

We make every effort to disclose information about the Tokio Disclosure Materials Marine Group’s current financial condition and future business Tokio Marine Holdings and the five group insurance companies development in a fair and understandable manner that facili- create disclosure documents and materials and strive to improve tates precise understandings for our stakeholders. information content.

Disclosure Policy of the Tokio Marine Group We aim to disclose meaningful information regarding the Tokio Marine Group that enhances management transparency and fairness in connection with our “Corporate Social Responsibility”.

1. Disclosure Policy It is our policy to disclose information expeditiously in accordance with the “Rules on the Timely Disclosure of Corporate Information by Issuers of Listed Securities and the Like” stipulated by the Tokyo Stock Exchange. We strive for the timely, accurate and fair disclosure of other information that is relevant to our customers, shareholders and investors, representative offices and employees as well as the society at large. 2. Methods of Disclosure Disclosure pursuant to stock exchange rules, regulations and other requirements is made through the Timely Disclosure network, or TDnet, of the Tokyo Stock Exchange as well as the press and other appropriate means. We subsequently post the disclosed information on our website. Other disclosure is made in an appropriate manner based on the content of the relevant information. 3. Additional Information Disclosure made based on this Disclosure Policy is intended to inform the public regarding the Tokio Marine Group’s activities accurately, expeditiously and fairly and is not intended to constitute an investment solicitation.

Adopted on November 30, 2004 Revised on July 5, 2007 Revised on July 1, 2008 WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 34 Websites Please refer to the following websites for disclosure of information relating to each Tokio Marine Group company:

Tokio Marine & Nichido Fire Insurance Co., Ltd. Nisshin Fire & Marine Insurance Co.,Ltd. Millea Nihon Kousei SS Insurance Co.,Ltd. http://www.tokiomarine-nichido.co.jp/english/ http://www.nisshinfire.co.jp/ http://www.millea-nkssi.co.jp/ index.html

Tokio Marine & Nichido Life Insurance Co., Ltd. Tokio Marine & Nichido Financial Life Insurance Co., Ltd. http://www.tmn-anshin.co.jp/ http://www.tmn-financial.co.jp/

Ratings Information The Tokio Marine Group’s credit ratings were as follows as of July 1, 2008.

Tokio Marine Group’s Credit Ratings

Tokio Marine Tokio Marine Tokio Marine & Tokio Marine & & Nichido Rating agency Type Holdings Nichido Nisshin Fire Nichido Life Financial Life S&P Insurer financial strength rating AA/ Stable A+/ Stable AA/ Stable Moody’s Insurer financial strength rating Aa2/ Stable Fitch Ratings Insurer financial strength rating AA+/ Stable A.M. Best Best’s rating A++/ Stable Rating and Investment Senior long-term credit AA+/ Stable AA/ Stable Information (R&I) Insurance claims paying ability AA+/ Stable AA+/ Stable Japan Credit Rating Agency Long-term rating AAA/ Stable AAA/ Stable (JCR) Insurance claims paying ability AAA/ Stable WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 35 Management

Information Disclosure and Investor Relations

Investor Relations Providing Information via the Internet Investor relations (IR) are activities that provide information to Tokio Marine Holdings proactively releases information on its shareholders and investors to facilitate investment decisions. website (http://www.tokiomarinehd.com/). In March 2008, we Tokio Marine Holdings accepts many opinions and sugges- upgraded the presentation of the top page and investor relations in its interactions with shareholders and investors through tions pages to make them more understandable. its IR activities such as information meetings regarding business The website offers financial data, esultsr data, important results and meetings with analysts and institutional investors. information about the Tokio Marine Group, news releases We make an effort to reflect these opinions and suggestions in and topics. management and aim to realize sound and transparent corpo- We also provide webcasts of briefings and explanations on rate governance. our website and distribute information meetings regarding business results for institutional investors and analysts as well as information meeting for individual investors. In addition, the website also distributes webcasts, such as the President’s Message for individual investors and explanations of monthly business results of Tokio Marine & Nichido by our directors.

Outline of IR Activities The following is an outline of the IR activities undertaken in fiscal 2007. Tokio Marine Holdings endeavors to provide information to shareholders and investors in Japan and overseas that would meet their concerns and needs. We will continue to strive to further enhance our IR activities in a variety of formats.

Fiscal 2007 IR Activities of Tokio Marine Holdings IR Activities for Individual Investors Domestic Investor Meetings Large Meetings for Institutional Investors (Information meetings for individual (Meetings were held with 178 (Information meetings regarding business investors were held twice in fiscal 2007, companies including results were held three times in fiscal 2007, with about 870 participants, and securities phone and video conferences.) with about 290 participants.) company investment seminars were held Note: Large meetings are defined as briefings six times with about 330 participants.) with 20 to 100 participants.

Overseas Investor Meetings (Road show) (Seven meetings were held in Europe, IR Activities of North America and Asia, with Domestic Small Meetings 102 companies participating) Tokio Marine Holdings (Meetings were held 11 times in fiscal 2007, with 59 companies) Note: Small meetings are defined as briefings with 3 to 20 participants.

Quarterly Results Conference Calls for Institutional Investors (Meetings were held five times in fiscal 2007, with 139 participants) WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 36 Performance

Change in Key Business Indicators (Consolidated basis) 38 PerformanceFinancial Information 39 Information 92 WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 37 Performance

Change in Key Business Indicators (Consolidated basis)

(Yen in millions except percentages) Year ended Year ended Year ended Year ended Year ended March 31, 2008 March 31, 2007 March 31, 2006 March 31, 2005 March 31, 2004 (April 1, 2007– (April 1, 2006– (April 1, 2005– (April 1, 2004– (April 1, 2003– March 31, 2008) March 31, 2007) March 31, 2006) March 31,2005) March 31, 2004) Ordinary income 3,710,066 4,218,557 3,399,984 2,899,467 2,775,718 Net premiums written 2,245,135 2,148,683 1,978,664 1,925,081 1,943,609 Ordinary profit 179,071 168,042 136,563 139,999 191,748 Net income 108,766 93,014 89,960 67,604 111,421 Stockholders’ equity 2,579,339 3,410,707 3,209,849 2,305,243 2,310,823 Total assets 17,283,242 17,226,952 14,260,020 11,624,496 11,006,256 Stockholders’ equity per share (Yen) 3,195.45 4,127.60 1,910,092.71 1,340,336.54 1,292,354.74 Net income per share basic (Yen) 133.54 112.10 52,980.59 38,618.19 61,132.01 Net income per share-Diluted (Yen) 133.50 112.07 52,973.36 — — Capital ratio (%) 14.83 19.73 22.51 19.83 21.00 Return on equity (%) 3.65 2.82 3.26 2.93 5.41 Price-earnings ratio (Multiple) 27.56 38.89 43.98 40.40 26.50 Cash flows from operating activities 822,143 1,367,717 899,584 385,740 350,863 Cash flows from investing activities (433,857) (986,389) (1,082,442) (75,449) 45,103 Cash flows from financing activities (66,404) (51,018) (45,030) (144,902) (21,366) Cash and cash equivalents at end of term 1,988,696 1,670,006 1,277,127 1,476,879 1,312,141 Number of employees 24,959 23,280 19,761 18,910 19,779

Notes: 1. For calculating net assets, the Company has adopted “Accounting Standard for Presentation of Net Assets in the Balance Sheet” (Accounting Standards Board of Japan, hereinafter “ASBJ,” Statement No. 5, December 9, 2005) and “Guidance on Accounting Standard for Presentation of Net Assets in the Balance Sheet” (ASBJ Guidance No. 8, December 9, 2005) for the fiscal year ended March 31, 2007 2. Effective September 30, 2006, the Company conducted a stock split of its shares of common stock whereby one share was split into 500 shares. 3. Because there were no potential common shares, “Net income per share-Diluted” is not shown for the fiscal year ended March 31, 2005 and prior fiscal years. 4. Employees are the number of staff currently employed WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 38 Financial Information

1. Basis of Presenting Consolidated Financial Statements The accompanying consolidated financial statements have been prepared from the accounts maintained by Millea Holdings, Inc. (“Millea Holdings”) and its consolidated subsidiaries in accordance with the Regulations Concerning Terminology, Formats and Preparation Methods of Consolidated Financial Statements (Ministry of Finance Ordinance No. 28, 1976, hereinafter the “Consolidated Statements Regulations”). The consolidated financial statements have been also prepared in conformity with the Enforcement Regulations for the Insurance Business Law (Ministry of Finance Ordinance No. 5, 1996, hereinafter the “Insurance Law Enforcement Regulations”), as stipulated under Articles 46 and 68 of the Consolidated Statements Regulations. In more specific terms, the consolidated financial statements for the previous consolidated fiscal year (April 1, 2006–March 31, 2007) were prepared in accordance with but prior to the amendment of both the Consolidated Statements Regulations and the Insurance Law Enforcement Regulations. On the other hand, the consolidated financial statements for the consolidated fiscal year under review (April 1, 2007–March 31, 2008) have been prepared in accordance with the amended Consolidated Statements Regulations and the Insurance Law Enforcement Regulations.

2. Certification of Audit Pursuant to Article 193-2 of the Securities and Exchange Law of Japan, Millea Holdings’ consolidated financial statements for the fiscal year ended March 31, 2007 have been audited and certified by PricewaterhouseCoopers Aarata. In addition, pursuant to Article 193-2, Paragraph 1 of the Financial Instruments and Exchange Law of Japan, Millea Holdings’ consolidated financial statements for the fiscal year ended March 31, 2008 have been audited and certified by the same accounting auditor. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 39 Performance

1 Financial Statements of Millea Holdings and its Consolidated Subsidiaries (1) Consolidated Financial Statements q Consolidated Balance Sheets

(Yen in millions except percentages)

As of March 31, 2008 As of March 31, 2007 Increase and Composition Composition Decrease by Notes No. Amount Amount ratio ratio Comparison Assets (%) (%) Cash and deposits *4 794,528 4.60 784,195 4.55 10,332 Call loans 199,725 1.16 106,154 0.62 93,571 Receivables under resale agreement 42,951 0.25 36,972 0.21 5,978 Receivables under securities borrowing transactions 95,520 0.55 158,316 0.92 (62,796) Monetary receivables bought 1,712,207 9.91 1,320,850 7.67 391,356 Money trusts 39,215 0.23 82,089 0.48 (42,873) Securities *2*4*6 12,138,621 70.23 12,683,128 73.62 (544,506) Loans *3*7 685,780 3.97 661,522 3.84 24,257 Tangible fixed assets *1 338,367 1.96 359,832 2.09 (21,645) Intangible fixed assets 55,270 0.32 28,914 0.17 26,356 Other assets *4 1,033,007 5.98 862,334 5.01 170,672 Deferred tax assets 65,565 0.38 44,993 0.26 20,571 Customers’ liabilities under acceptances and guarantees 97,688 0.57 112,744 0.65 (15,056) Reserve for bad debts (15,207) (0.09) (15,096) (0.09) (110) Total assets 17,283,242 100.00 17,226,952 100.00 56,289 Liabilities Underwriting funds 11,173,679 64.65 10,558,887 61.29 614,791 Outstanding claims *4 1,098,017 982,828 115,189 Underwriting reserves *4 10,075,661 9,576,059 499,602 Short-term corporate bonds 99,965 0.58 — — 99,965 Corporate bonds *4 333,123 1.93 283,988 1.65 49,135 Other liabilities *4 2,222,147 12.86 1,612,622 9.36 609,524 Payable under securities lending transactions 1,448,797 — 1,448,797 Other liabilities *4 773,349 — 7732,349 Reserve for retirement benefits 138,459 0.80 157,005 0.91 (18,545) Reserve for retirement benefits for directors and 397 0.00 —— 397 corporate auditors Reserve for employees’ bonuses 25,355 0.15 20,988 0.12 4,367 Reserve for retirement of fixed assets 3,773 0.02 — — 3,773 Reserve under the special law 121,989 0.71 113,227 0.66 8,761 Reserve for price fluctuation 121,989 113,227 8,761 Deferred tax liabilities 332,322 1.92 791,367 4.59 (459,044) Negative goodwill 155,000 0.90 165,413 0.96 (10,413) Acceptances and guarantees 97,688 0.57 112,744 0.65 (15,056) Total liabilities 14,703,902 85.08 13,816,245 80.20 887,656 Net assets Shareholders’ equity Common stock 150,000 0.87 150,000 0.87 — Retained earnings 1,010,521 5.85 1,024,216 5.95 (13,694) Treasury stock (9,792) (0.06) (5,038) (0.03) (4,754) Total shareholders’ equity 1,150,728 6.66 1,169,178 6.79 (18,449) Valuation and translation adjustments Unrealized gains on securities, net of taxes 1,402,487 8.11 2,217,476 12.87 (814,988) Deferred gains and losses on hedge transactions 11,952 0.07 7,728 0.04 4,223 Foreign currency translation adjustments (1,673) (0.01) 4,031 0.02 (5,705) Total valuation and translation adjustments 1,412,765 8.17 2,229,236 12.94 (816,470) Stock acquisition rights 619 0.00 336 0.00 283 Minority interest 15,224 0.09 11,956 0.07 3,268 Total net assets 2,579,339 14.92 3,410,707 19.80 (831,367) Total liabilities and net assets 17,283,242 100.00 17,226,952 100.00 (56,289) WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 40 The accompanying notes are an integral part of the consolidated financial statements. w Consolidated Statements of Income

(Yen in millions except percentages) Year ended March 31, 2008 Year ended March 31, 2007 (April 1, 2007–March 31, 2008) (April 1, 2006–March 31, 2007) Increase and Decrease by Notes No. Amount Ratio Amount Ratio Comparison

Ordinary income and expenses (%) (%) Ordinary income 3,710,066 100.00 4,218,557 100.00 (508,491) Underwriting income 3,312,472 89.28 3,823,859 90.64 (511,386) Net premiums written 2,245,135 2,148,683 96,451 Deposited premiums from policyholders 200,161 213,124 (12,963) Investment income on deposited premiums from 75,050 72,042 3,008 policyholders Life insurance premiums 788,387 1,387,912 (599,524) Other underwriting income 3,737 2,095 1,641 Investment income 342,121 9.22 339,532 8.05 2,589 Interest and dividends 285,424 220,075 65,349 Gains on money trusts 517 1,459 (941) Gains on trading securities 7,163 4,329 2,883 Gains on sales of securities 58,913 77,420 (18,507) Gains on redemption of securities 2,994 5,121 (2,127) Gains on derivatives 45,468 15,094 30,373 Gains on separate accounts — 74,296 (74,296) Other investment income 16,690 13,777 2,913 Transfer of investment income on deposited premiums (75,050) (72,042) (3,008) Other ordinary income 55,471 1.50 55,165 1.31 305 Amortization of negative goodwill 10,436 9,072 1,363 Equity in earnings of affiliates — 124 (124) Other ordinary income 45,034 45,968 (933) Ordinary expenses 3,530,994 95.17 4,050,515 96.02 (519,521) Underwriting expenses 2,683,605 72.33 3,562,253 84.44 (878,648) Net claims paid 1,270,275 1,226,236 44,038 Loss adjustment expenses *1 86,469 78,204 8,264 Agency commissions and brokerage *1 444,572 436,893 7,678 Maturity refunds to policyholders 288,961 293,430 (4,469) Dividends to policyholders 31 20 10 Life insurance claims 88,676 54,721 33,955 Provision for outstanding claims 52,442 51,017 1,424 Provision for underwriting reserves 445,465 1,420,077 (974,612) Other underwriting expenses 6,711 1,650 5,061

(Continued on following page) WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 41 Performance

Investment expenses 326,884 8.81 17,135 0.41 309,748 Losses on money trusts 4,178 503 3,674 Losses on sales of securities 14,430 5,615 8,815 Impairment losses on securities 38,221 7,855 30,365 Losses on redemption of securities 1,747 1,849 (102) Losses on separate account 209,781 — 209,781 Other investment expenses 58,525 1,311 57,213 Operating and general administrative expenses *1 482,160 13.00 446,851 10.59 35,308 Other ordinary expenses 38,344 1.03 24,274 0.58 14,070 Interest paid 20,682 9,088 11,594 Provision for bad debts 298 — 298 Losses on bad debts 126 38 88 Equity in losses of affiliates *2 3,667 — 3,667 Other ordinary expenses 13,569 15,146 (1,576) Ordinary profit 179,071 4.83 168,042 3.98 11,029 Extraordinary gains and losses Extraordinary gains 31,199 0.84 3,009 0.07 28,189 Gains on sales of fixed assets 3,265 1,921 1,344 Gains on changes in equity of affiliates 4 98 (94) Other extraordinary gains *3 27,929 989 26,940 Extraordinary losses 35,683 0.96 29,172 0.69 6,511 Losses on sales of fixed assets 2,040 3,528 (1,488) Impairment losses on fixed assets *2 8,654 4,602 4,052 Reserve under the special law 8,761 10,609 (1,847) Reserve for price fluctuation 8,761 10,609 (1,847) Losses on reduction of fixed assets 9 — 9 Other extraordinary losses *4 16,217 10,431 5,785 Income or losses before income taxes 174,587 4.71 141,879 3.36 32,708 Income taxes-current 88,031 2.37 75,532 1.79 12,499 Income taxes-deferred (23,763) (0.64) (27,180) (0.64) 3,417 Minority interest 1,553 0.04 513 0.01 1,039 Net income 108,766 2.93 93,014 2.20 15,751

The accompanying notes are an integral part of the consolidated financial statements. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 42 e Consolidated Statement of Changes in Shareholders’ Equity Year ended March 31, 2008 (April 1, 2007 to March 31, 2008)

(Yen in millions) Shareholders’ equity Total Common Retained Treasury shareholders’ stock earnings stock equity Ending balance as of March 31, 2007 150,000 1,024,216 (5,038) 1,169,178 Changes during the fiscal year ended March 31, 2008 Dividends (31,964) (31,964) Net income 108,766 108,766 Decrease in connection with newly consolidated subsidiaries (4,427) (4,427) Other decrease (Note) (520) (520) Repurchase of treasury stock (90,464) (90,464) Cancellation of treasury stock (85,410) 85,410 —. Disposition of treasury stock (139) 300 161 Net changes in items other than shareholders’ equity Total changes during the fiscal year ended March 31, 2008 —. (13,694) (4,754) (18,449) Ending balance as of March 31, 2008 150,000 1,010,521 (9,792) 1,150,728

Valuation and translation adjustments

Unrealized Deferred Foreign Stock acquisition Minority interest Total net assets gains on gains and currency rights securities, losses on hedge translation net of tax transaction adjustments Ending balance as of March 31, 2007 2,217,476 7,728 4,031 336 11,956 3,410,707 Changes during the fiscal year ended March 31, 2008 Dividends (31,964) Net income 108,766 Decrease in connection with newly consolidated (4,427) subsidiaries Other decrease (Note) (520) Repurchase of treasury stock (90,464) Cancellation of treasury stock —. Disposition of treasury stock 161 Net changes in items other than shareholders’ equity (814,988) 4,223 (5,705) 283 3,268 (812,918) Total changes during the fiscal year ended March 31, 2008 (814,988) 4,223 (5,705) 283 3,268 (831,367) Ending balance as of March 31, 2008 1,402,487 11,952 (1,673) 619 15,224 2,579,339 Note: “Other decrease” includes valuation adjustments of assets in accordance with accounting standards of foreign countries where consolidated subsidiaries or equity method affiliates are located.

The accompanying notes are an integral part of the consolidated financial statements. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 43 Performance

Year ended March 31, 2007 (April 1, 2006 to March 31, 2007)

(Yen in millions) Shareholders’ equity Total Common Capital Retained Treasury shareholders’ stock surplus earnings stock equity Ending balance as of March 31, 2006 150,000 56,409 990,712 (11,539) 1,185,582 Changes during the fiscal year ended March 31, 2007 Dividends (Note1) (25,207) (25,207) Dividends (12,532) (12,532) Net income 93,014 93,014 Decrease in connection with newly consolidated (713) (713) subsidiaries Other increase (Note2) 292 292 Repurchase of treasury stock (153,574) (153,574) Cancellation of treasury stock (59,278) (21,350) 80,629 —. Disposition of treasury stock (124) 251 126 Stock-for-stock exchange (Note3) 2,994 79,196 82,190 Net changes in items other than shareholders’ equity Total changes during the fiscal year ended March 31, 2007 —. (56,409) 33,503 6,501 (16,404) Ending balance as of March 31, 2007 150,000 —. 1,024,216 (5,038) 1,169,178

Valuation and translation adjustments

Unrealized Deferred Foreign Stock acquisition Minority interest Total net assets gains on gains and currency rights securities, losses on hedge translation net of tax transaction adjustments Ending balance as of March 31, 2006 2,030,347 — (6,080) —. 484 3,210,333 Changes during the fiscal year ended March 31, 2007 Dividends (Note1) (25,207) Dividends (12,532) Net income 93,014 Decrease in connection with newly consolidated (713) subsidiaries Other increase (Note2) 292 Repurchase of treasury stock (153,574) Cancellation of treasury stock —. Disposition of treasury stock 126 Stock-for-stock exchange (Note3) 82,190 Net changes in items other than shareholders’ equity 187,129 7,728 10,111 336 11,472 216,777 Total changes during the fiscal year ended March 31, 2007 187,129 7,728 10,111 336 11,472 200,373 Ending balance as of March 31, 2007 2,217,476 7,728 4,031 336 11,956 3,410,707 Notes: 1. Appropriation of profit approved at the ordinary general meeting of shareholders held in June 2006. 2. “Other increase” includes valuation adjustments of assets in accordance with accounting standards of foreign countries where consolidated subsidiaries or equity method affiliates are located. 3. The transaction was conducted in connection with the stock-for-stock exchange which made Nissin Fire a wholly-owned subsidiary of the Company.

The accompanying notes are an integral part of the consolidated financial statements. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 44 r Consolidated Statements of Cash Flows

(Yen in millions)

Year ended Year ended Increase and March 31, 2008 March 31, 2007 Decrease by (April 1, 2007– (April 1, 2006– Comparison March 31, 2008) March 31, 2007) Notes No. Amount Amount I Cash flows from operating activities Income before income taxes 174,587 141,879 32,708 Depreciation 20,524 18,334 2,190 Extraordinary depreciation of fixed assets 5,692 — 5,692 Impairment losses on fixed assets 8,654 4,602 4,052 Amortization of goodwill 7,311 6,615 696 Amortization of negative goodwill (10,436) (9,072) (1,363) Increase in outstanding claims 53,831 51,502 2,329 Increase in underwriting reserves 445,026 1,412,480 (967,453) Decrease in reserve for bad debts (808) (4,165) 3,356 Increase in reserve for retirement benefits 7,360 2,542 4,818 Increase in reserve for retirement benefits for directors and corporate auditors 28 — 28 Decrease in reserve for retirement benefits due to transfer to defined-contribution (26,151) — (26,151) pension plan Increase in reserve for employees’ bonuses 188 1,639 (1,451) Increase in reserve for retirement of fixed assets 3,773 — 3,773 Increase in reserve for price fluctuation 8,761 10,609 (1,847) Interest and dividends (285,424) (220,075) (65,349) Net gains and losses on securities (negative) (14,953) (71,355) 56,402 Interest expenses 20,682 9,088 11,594 Gains and losses on foreign exchange (negative) 39,313 (576) 39,889 Gains and losses related to tangible fixed assets (negative) (1,215) 1,607 (2,823) Equity in earnings (losses) of affiliates (negative) 3,667 (124) 3,791 Investment gains and losses on separate accounts (negative) 209,781 (74,296) 284,078 Increase in other assets (other than investing and financing activities) (119,402) (45,661) (73,741) Increase in other liabilities (other than investing and financing activities) 48,052 38,814 9,238 Others 2,795 3,496 (701) Subtotal 601,641 1,277,886 (676,244) Interest and dividends 271,206 198,792 72,413 Interest paid (20,172) (8,575) (11,596) Income taxes paid (45,235) (106,995) 61,759 Others 14,703 6,609 8,093 Net cash provided by operating activities 822,143 1,367,717 (545,574) II Cash flows from investing activities Net increase in deposits (12,189) (49,332) 37,142 Purchases of monetary receivables bought (1,119,993) (345,956) (774,036) Proceeds from sales and redemption of monetary receivables bought 951,335 354,514 596,821 Increase in money trusts (810) (11,736) 10,926 Decrease in money trusts 40,023 31,057 8,966 Purchases of securities (4,516,456) (5,380,873) 864,416 Proceeds from sales and redemption of securities 3,626,194 4,288,647 (662,452) Loans made (301,682) (331,449) 29,766 Proceeds from collection of loans 276,776 274,036 2,740 Increase in cash received under securities lending transactions 670,887 193,703 477,184 Others (2,210) (822) (1,388) II (a) Subtotal (388,124) (978,210) 590,085 (I+II (a)) 434,018 389,506 (44,511) Purchases of tangible fixed assets (16,673) (12,947) (3,725) Proceeds from sales of tangible fixed assets 14,795 8,020 6,775 Payments related to acquisition of consolidated subsidiaries *3 (43,720) (3,251) (40,469) Payments related to capital injection to existing consolidated subsidiaries (135) — (135) Net cash used in investing activities (433,857) (986,389) 552,531 (Continued on following page) WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 45 Performance

(Yen in millions) Year ended Year ended Increase and March 31, 2008 March 31, 2007 Decrease by (April 1, 2007– (April 1, 2006– Comparison March 31, 2008) March 31, 2007) Notes No. Amount Amount III Cash flows from financing activities Proceeds from borrowing 2,153 4,000 (1,846) Repayments of borrowing (14) (2,019) 2,004 Proceeds from issuance of short-term corporate bonds 451,841 — 451,841 Redemption of short-term corporate bonds (352,000) — (352,000) Proceeds from issuance of commercial paper 692,989 193,504 499,484 Redemption of commercial paper (780,355) (84,582) (695,772) Proceeds from issuance of corporate bonds 84,380 91,457 (7,077) Redemption of corporate bonds (41,791) (58,681) 16,889 Repurchases of treasury stock (90,464) (153,448) 62,983 Dividends paid (31,906) (37,672) 5,765 Dividends paid to minority shareholders (222) (84) (137) Proceeds from paid-up share capital from minority shareholders 1,386 — 1,386 Others (2,399) (3,492) 1,092 Net cash used in financing activities (66,404) (51,018) (15,386) IV Effect of exchange rate changes on cash and cash equivalents (5,887) 4,311 (10,198) V Net increase in cash and cash equivalents 315,993 334,621 (18,627) VI Cash and cash equivalents at beginning of period 1,670,006 1,277,127 392,878 VII Net increase in cash and cash equivalents due to newly consolidated subsidiaries 2,696 58,257 (55,561) VIII Cash and cash equivalents at end of period *1 1,988,696 1,670,006 318,689

The accompanying notes are an integral part of the consolidated financial statements. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 46 Basis of Presentation and Significant Accounting Policies

Year ended March 31, 2008 Year ended March 31, 2007 (April 1, 2007–March 31, 2008) (April 1, 2006–March 31, 2007)

1. Scope of (1) Number of consolidated subsidiaries—53 companies (1) Number of consolidated subsidiaries—25 companies consolidation For details of Millea Holdings’ consolidated subsidiaries, For details of Millea Holdings’ consolidated subsidiaries, please refer to “Tokio Marine Holdings and its Subsidiaries” in please refer to “Tokio Marine Holdings and its Subsidiaries” in “Corporate Data.” “Corporate Data.” Millea Nihon Kosei, Kiln Ltd, Kiln (UK) Holdings Limited, Kiln Nisshin Fire, formerly an affiliate accounted for under the Reinsurance Ltd., Kiln Underwriting Limited and 20 other equity method, is included in the consolidation for the fiscal companies are included in the consolidation from the fiscal year year ended March 31, 2007 because it became a wholly owned ended March 31, 2008 due to these entities having become subsidiary through a stock-for-stock exchange effective on subsidiaries through an acquisition of shares during the fiscal September 30, 2006. year ended March 31, 2008. Tokio Marine & Nichido Facilities, Inc. and P. T. Asuransi Tokio Marine Bluebell Re Limited and two other companies Tokio Marine Indonesia are included in the consolidation from are included in the consolidation from the fiscal year ended the fiscal year ended March 31, 2007 due to an increase in March 31, 2008 due to an increase in importance. importance. Vetra Finance Corporation is included in the consolidation from the fiscal year ended March 31, 2007 because it became a subsidiary through Millea Group’s investment in the unsecured subordinated income notes of Vetra Finance Corporation as of November 15, 2006. Asia General Holdings Limited, TM Asia Insurance Singapore Ltd., TM Asia Life Singapore Ltd., Asia Insurance (Malaysia) Berhad and TM Asia Life Malaysia Bhd. are included in the consolidation for the fiscal year ended March 31, 2007 due to these entities having become subsidiaries through an acquisition of shares as of January 5, 2007. Millea Asia Pte. Ltd. was renamed Tokio Marine Asia Pte. Ltd. as of June 23, 2006.

(2) Names of major non-consolidated subsidiaries (2) Names of major non-consolidated subsidiaries Tokio Marine & Nichido Adjusting Service Co., Ltd. and Tokio (No change) Marine Capital Co., Ltd. are non-consolidated subsidiaries of the Company. Each non-consolidated subsidiary is small in scale in terms of total assets, sales, net income or loss for the period and retained earnings. As such non-consolidated subsidiaries are not considered to materially affect any reasonable determination as to the Group’s financial condition and results of operations, these companies are excluded from the consolidation.

2. Application (1) Number of affiliates accounted for by the equity method: 10 (1) Number of affiliates accounted for by the equity method: 4 of the equity companies companies (Names of major affiliates accounted for by the equity method) First Insurance Company of Hawaii, Ltd. method Sino Life Insurance Co., Ltd. Tianan Insurance Company Limited Tianan Insurance Company Limited Tokio Marine Newa Insurance Co., Ltd. Real Tokio Marine Vida e Previdência S.A. Real Vida e Previdencia S.A.

International Marine Insurance Managers SA (Pty) Ltd and 4 Tokio Marine Newa Insurance Co., Ltd. is accounted for by the other companies are accounted for by the equity method from equity method from the fiscal year ended March 31, 2007 due the fiscal year ended March 31, 2008 due to these entities to an increase in importance. having become affiliates through an acquisition of shares during Sudameris Vida e Previdencia S.A., previously an affiliate the fiscal year ended March 31, 2008. Sino Life Insurance Co., accounted for by the equity method, was excluded from the Ltd. is accounted for by the equity method from the fiscal year affiliates accounted for by the equity method since it merged ended March 31, 2008 due to an increase in importance. with Real Vida e Previdencia S.A. effective as of September 29, 2006. Real Vida e Previdencia S.A. was renamed Real Tokio Marine Vida e Previdencia S.A. as of January 15, 2007

(2) The non-consolidated subsidiaries (Tokio Marine & Nichido (2) The non-consolidated subsidiaries (Tokio Marine & Nichido Adjusting Service Co., Ltd., Tokio Marine Capital Co., Ltd., etc.) Adjusting Service Co., Ltd., Tokio Marine Capital Co., Ltd., etc.) and other affiliates (Tokio Marine Malayan Insurance Co., Inc., and other affiliates (Sino Life Insurance Co., Ltd., etc.), which etc.), which are not subject to the equity method, have not been are not subject to the equity method, have not been accounted accounted for by the equity method because these companies for by the equity method because these companies have had a have had a minor effect on the Company’s consolidated minor effect on the Company’s consolidated net income or loss net income or loss for the current period as well as retained for the current period as well as retained earnings, respectively. earnings, respectively. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 47 Performance

Year ended March 31, 2008 Year ended March 31, 2007 (April 1, 2007–March 31, 2008) (April 1, 2006–March 31, 2007)

(3) The Company owns 30.1% of the total voting rights of Japan (3) The Company owns 29.9% of the total voting rights of Japan Earthquake Reinsurance Co., Ltd. through Tokio Marine & Earthquake Reinsurance Co., Ltd. through Tokio Marine & Nichido and Nisshin Fire. However, the Company does not Nichido and Nisshin Fire. However, the Company does not consider Japan Earthquake Reinsurance Co., Ltd. to be its consider Japan Earthquake Reinsurance Co., Ltd. to be its affiliate since it believes that it can not exert a significant affiliate since it believes that it can not exert a significant influence on any policy making decisions of Japan Earthquake influence on any policy making decisions of Japan Earthquake Reinsurance’s operations given the highly public nature of the Reinsurance’s operations given the highly public nature of the company. company.

(4) With regard to any company accounted for by the equity (4) (No change) method that has a different closing date from that of the consolidated financial statements, the financial statements of that company for its fiscal year are used for presentation in the consolidated financial results.

3. Closing date of The closing date of the fiscal year for one of the domestic The closing date of the fiscal year for one of the domestic consolidated consolidated subsidiaries and 43 overseas consolidated consolidated subsidiaries and 17 overseas consolidated subsidiaries is December 31. The closing date of the fiscal year subsidiaries is December 31. The closing date of the fiscal year subsidiaries for two of the overseas consolidated subsidiaries is January for one of the overseas consolidated subsidiaries is January 31. Since the differences in the closing dates do not exceed 31. Since the differences in the closing dates do not exceed three months, the financial statements of the consolidated three months, the financial statements of the consolidated subsidiaries as of December 31 and January 31, respectively, subsidiaries as of December 31 and January 31, respectively, are used for presentation in the accompanying consolidated are used for presentation in the accompanying consolidated financial statements. As for any significant transactions taking financial statements. As for any significant transactions taking place during the period between the subsidiaries’ closing dates place during the period between the subsidiaries’ closing dates and the consolidated closing date, necessary adjustments are and the consolidated closing date, necessary adjustments are made for the purpose of consolidation. made for the purpose of consolidation.

4. Accounting (1) Valuation of securities (1) Valuation of securities policies a. Trading securities are valued by the mark-to-market method, a. (No change) with the costs of their sales being calculated based on the b. (No change) moving-average method. c. Debt securities earmarked for policy reserves are stated at b. Held-to-maturity debt securities are recorded by using the amortized cost under the straight-line method in accordance amortized cost method based on the moving-average method with the Industry Audit Committee Report No. 21 “Temporary (straight-line depreciation method). Treatment of Accounting and Auditing Concerning Securities c. Debt securities earmarked for policy reserves are stated at Earmarked for Policy Reserve in Insurance Industry” issued amortized cost under the straight-line method in accordance by the Japanese Institute of Certified Public Accountants (the with the Industry Audit Committee Report No. 21 “Temporary “JICPA”), November 16, 2000. Treatment of Accounting and Auditing Concerning Securities Debt securities earmarked for policy reserves are recognized Earmarked for Policy Reserve in Insurance Industry” issued in the amount of 296,560 million yen on the consolidated by the Japanese Institute of Certified Public Accountants (the balance sheets as of March 31, 2007. The market value thereof “JICPA”), November 16, 2000. is 291,849 million yen. The amount of debt securities earmarked for policy reserves The following is a summary of the risk management policy recorded on the consolidated balance sheets and their market concerning debt securities earmarked for policy reserves. value are presented under “(Securities), 3. Bonds earmarked for In order to adequately manage interest rate risk related to policy reserve with fair value” below. assets and liabilities, Tokio Marine & Nichido Life has established The following is a summary of the risk management policy the following policy reserve subgroups: “the dollar-denominated concerning debt securities earmarked for policy reserves. policy reserve for insurance policies during the period of In order to adequately manage interest rate risk related to deferment regarding individual annuity insurance denominated assets and liabilities, Tokio Marine & Nichido Life has established in U.S. dollars with a policy cancellation refund based on the following policy reserve subgroups: “the dollar-denominated market interest rates”, “accumulated fund of policy reserve for policy reserve for insurance policies during the period of insurance policies during the period of deferment regarding deferment regarding individual annuity insurance denominated individual annuity insurance with floating interest rates”, in U.S. dollars with a policy cancellation refund based on “accumulated fund of policy reserve for insurance policies market interest rates”, “accumulated fund of policy reserve for of single payment whole-life insurance with floating interest insurance policies during the period of deferment regarding rates denominated in U.S. dollars” and “accumulated fund of individual annuity insurance with floating interest rates”, policy reserve for insurance policies of single payment individual “accumulated fund of policy reserve for insurance policies annuity insurance”. Tokio Marine & Nichido Life’s policy is to of single payment whole-life insurance with floating interest match the duration of the policy reserve in each subgroup rates denominated in U.S. dollars” and “accumulated fund of with debt securities of the same or similar duration that are policy reserve for insurance policies of single payment individual earmarked for policy reserves. annuity insurance”. Tokio Marine & Nichido Life’s policy is to match the duration of the policy reserve in each subgroup with debt securities of the same or similar duration that are earmarked for policy reserves. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 48 Year ended March 31, 2008 Year ended March 31, 2007 (April 1, 2007–March 31, 2008) (April 1, 2006–March 31, 2007) d. Other securities with fair value are recorded by the mark-to- d. (No change) market method based upon the market price on the closing date. The total amount of unrealized gains/losses on other securities is included in net assets, net income taxes and costs of sales sold are calculated using the moving-average method. e. Other securities with no fair value are either stated at cost e. (No change) or amortized cost under the straight-line method, cost being determined by the moving average method. f. Investments in non-consolidated subsidiaries and affiliates f. (No change) that are not subject to the equity method are stated at cost determined by the moving-average method. g. Securities held in individually managed money trusts that are g. (No change) mainly invested in securities for trading are accounted for under the mark-to-market method.

(2) Valuation of derivative financial instruments (2) Valuation of derivative financial instruments Derivative financial instruments are accounted for by the mark- (No change) to-market method.

(3) Depreciation of tangible fixed assets (3) Depreciation of tangible fixed assets Depreciation of tangible fixed assets owned by the Company Depreciation of tangible fixed assets owned by the Company and its domestic consolidated subsidiaries is computed using the and its domestic consolidated subsidiaries is computed using the declining balance method. declining balance method. However, depreciation of buildings (excluding auxiliary However, depreciation of buildings (excluding auxiliary facilities attached to such buildings, etc.) that were acquired facilities attached to such buildings, etc.) that were acquired on or after April 1, 1998 is computed using the straight-line on or after April 1, 1998 is computed using the straight-line method. method. (Change in accounting policies) For the fiscal year ended March 31, 2008, the Company and its domestic consolidated subsidiaries have adopted a depreciation method for tangible fixed assets acquired on or after April 1, 2007, in accordance with the amended Corporate Tax Law of Japan. As a result, in comparison with the previous method, ordinary gains and income before income taxes for the fiscal year ended March 31, 2008, decreased in the amount of 420 million yen. The financial impact of the above method on segment information is described in “Segment Information.” WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 49 Performance

Year ended March 31, 2008 Year ended March 31, 2007 (April 1, 2007–March 31, 2008) (April 1, 2006–March 31, 2007)

(Additional information) For the fiscal year ended March 31, 2008, the Company and its domestic consolidated subsidiaries amortized the residual value of tangible fixed assets which were acquired on or before March 31, 2007 and which have met the end of the amortization period. The residual value is amortized over a five-year period by the straight line method. As a result, in comparison with the previous method, ordinary profit and income before income taxes for the fiscal year ended March 31, 2008 decreased by 649 million yen. The financial impact of the above method on segment information is described in “Segment Information.” Tokio Marine & Nichido recognized an extraordinary depreciation by changing the useful life and residual value of its buildings, which became inadequate due to a probability of a new rebuilding plan. Increase of accumulated depreciation due to this change, which amounted to 5,692 million yen, is included in "Other ordinary expenses." As a result, income before income taxes decreased by the same amount compared to the amount before the change.

(4) Accounting policies for significant eservesr and allowances (4) Accounting policies for significant eservesr and allowances

a. Reserve for bad debts a. Reserve for bad debts In order to provide reserves for losses from bad debts, a general (No change) allowance is made pursuant to the rules of asset self-assessment and the rules of asset write-off. Allowances are made by domestic consolidated insurance subsidiaries as follows: For claims to any debtor who has legally, or in practice, become insolvent (due to bankruptcy, special liquidation or suspension of transactions with banks based on the rules governing clearing houses, etc.) and for receivables from any debtor who has substantially become insolvent, reserves are provided based on the amount of any such claim minus the amount expected to be collectible calculated based on the disposal of collateral or execution of guarantees. For claims to any debtor who is likely to become insolvent in the near future, reserves are provided based on the overall solvency assessment of the relevant debtor, the net amount of such claims considered to be collectible through the disposal of collateral or execution of guarantee is deducted from such claims. For claims other than those described above, the amount of claims is multiplied by the default rate, which is computed based on historical loan loss experience in certain previous periods, and is included in the accompanying consolidated financial statements. For specified overseas claims, any estimated losses arising from political or economic situations in the relevant countries are accounted for as reserves for specified overseas claims in the accompanying consolidated financial statements. In addition, all claims are assessed by the asset accounting department and the asset management department in accordance with the rules for self-assessment of asset quality. Subsequently, the asset auditing departments, which are independent from other asset-related departments, conduct audits of the assessment results of the other asset-related departments. Reserves for bad debts are accounted for based on such assessment results as stated above. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 50 Year ended March 31, 2008 Year ended March 31, 2007 (April 1, 2007–March 31, 2008) (April 1, 2006–March 31, 2007) b. Reserve for retirement benefits b. Reserve for retirement benefits To provide for employees’ retirement benefits, the Company and To provide for employees’ retirement benefits, the Company and its domestic consolidated subsidiaries have recorded the amount its domestic consolidated subsidiaries have recorded the amount deemed to be incurred at the end of the fiscal year ended deemed to be incurred at the end of the fiscal year ended March 31, 2008 based on the projected retirement benefit March 31, 2007 based on the projected retirement benefit obligations and related pension assets at the end of the fiscal obligations and related pension assets at the end of the fiscal year ended March 31, 2008. year ended March 31, 2007. Prior service costs are charged to expenses in each Prior service costs are charged to expenses in each subsequent consolidated fiscal year by using the straight-line subsequent consolidated fiscal year by using the straight-line method with costs based on a certain term (14 years) that is method with costs based on a certain term (15 years) that is based on the average remaining service years of the employees based on the average remaining service years of the employees when costs were incurred. when costs were incurred. Actuarial differences are charged to expenses in the Actuarial differences are charged to expenses in the subsequent consolidated fiscal year by using the straight-line subsequent consolidated fiscal year by using the straight-line method based on a certain term (1–14 years) that is based on method based on a certain term (5–15 years) that is based on the average remaining service years of the employees when the average remaining service years of the employees when amounts were incurred. amounts were incurred. Certain of the domestic consolidated subsidiaries must accrue (Additional Information) a reserve for retirement benefits in the aggregated amount Pursuant to the Defined Contribution Pension Law of Japan, of 369 million yen to provide for the payment of retirement Tokio Marine & Nichido transferred a portion of its corporate benefits to directors and corporate auditors. pension fund to a defined-contribution pension plan as of July 2, 2007 in accordance with “Accounting Standard for Transfers between Retirement Benefit Plans” (Accounting Standards Board of Japan , hereinafter “ASBJ”, Guidance No.1. January 31, 2002). This resulted in an extraordinary gain amounting to 26,151 million yen for the fiscal year ended March 31, 2008. c. Reserve for retirement benefits for directors and corporate c. Reserve for employees’ bonuses auditors (No change) Some domestic consolidated subsidiaries set aside a reserve for retirement benefits for their directors and corporate auditors as of the end of the fiscal year ended March 31, 2008, in accordance with their internal remuneration regulations. d. Reserve for employees’ bonuses d. Reserve for price fluctuation To provide for payment of bonuses to employees, the Company (No change) and its consolidated domestic subsidiaries maintain reserves for employees’ bonuses based on the expected amount to be paid. e. Reserve for retirement of tangible fixed assets To provide for payment of expenses related to dismantling a building, Tokio Marine & Nichido provided a reserve for retirement of tangible fixed assets based on the projected amount to be paid for dismantling the building. f. Reserve for price fluctuation Domestic consolidated insurance subsidiaries maintain reserves under Article 115 of the Insurance Business Law in order to provide for possible losses or damages arising from price fluctuation of stock, etc.

(5) Consumption tax (5) Consumption tax For the Company and its domestic consolidated subsidiaries, (No change) consumption tax is accounted for by the tax-excluded method. However, underwriting and general administrative costs incurred by domestic consolidated insurance subsidiaries are accounted for by the tax-included method. In addition, any undeductible consumption taxes, in respect of assets is included in other assets (as suspense payments) and is amortized over five years using the straight-line method. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 51 Performance

Year ended March 31, 2008 Year ended March 31, 2007 (April 1, 2007–March 31, 2008) (April 1, 2006–March 31, 2007)

(6) Lease transactions (6) Lease transactions The Company and its domestic consolidated subsidiaries (No change) account for finance lease transactions, other than those that are deemed to transfer the ownership of the leased properties to lessees under a method similar to that applicable to ordinary operating leases.

(7) Hedge accountings (7) Hedge accountings a. Interest rate a. Interest rate To mitigate interest rate fluctuation risks associated with To mitigate interest rate fluctuation risks associated with long-term insurance policies, Tokio Marine & Nichido and long-term insurance policies, Tokio Marine & Nichido and Tokio Marine & Nichido Life implement the Asset Liability Tokio Marine & Nichido Life implement the Asset Liability Management designed to manage such risks by evaluating and Management designed to manage such risks by evaluating and analyzing financial assets and insurance liabilities simultaneously. analyzing financial assets and insurance liabilities simultaneously. As for some of interest rate swap transactions that are utilized As for some of interest rate swap transactions that are utilized to manage such risks, Tokio Marine & Nichido and Tokio to manage such risks, Tokio Marine & Nichido and Tokio Marine & Nichido Life have applied deferral hedge treatment Marine & Nichido Life have applied deferral hedge treatment and evaluated hedge effectiveness based upon the Industry and evaluated hedge effectiveness based upon the Industry Audit Committee Report No. 26, “Accounting and Auditing Audit Committee Report No. 26, “Accounting and Auditing Treatments related to Adoption of Accounting for Financial Treatments related to Adoption of Accounting for Financial Instruments in the Insurance Industry” (issued by the Japanese Instruments in the Insurance Industry” (issued by the Japanese Institute of Certified Public Accountant (“JICPA”) on September Institute of Certified Public Accountant (“JICPA”) on September 3, 2002—hereinafter called “Report No. 26”). 3, 2002—hereinafter called “Report No. 26”). Hedge effectiveness is evaluated by examining the interest Hedge effectiveness is evaluated by examining the interest rate conditions which affect calculation of theoretical value of rate conditions which affect calculation of theoretical value of both the hedged items and the hedging instruments. As for any both the hedged items and the hedging instruments. As for any deferred hedge gains based on the Industry Audit Committee’s deferred hedge gains based on the Industry Audit Committee’s Report No.16, “Accounting and Auditing Treatments related Report No.16, “Accounting and Auditing Treatments related to Adoption of Accounting for Financial Instruments in the to Adoption of Accounting for Financial Instruments in the Insurance Industry” (issued by the JICPA, on March 31, 2000) Insurance Industry” (issued by the JICPA, on March 31, 2000) prior to application of the Report No. 26, Tokio Marine & prior to application of the Report No. 26, Tokio Marine & Nichido has amortized such deferred hedge gains as of the Nichido has amortized such deferred hedge gains as of the end of March 2003 over the remaining period of hedging tools end of March 2003 over the remaining period of hedging tools (1–17 years) by using the straight-line method, and Tokio Marine (1–17 years) by using the straight-line method, and Tokio Marine & Nichido Life has amortized deferred hedge gains as of the & Nichido Life has amortized deferred hedge gains as of the end of March 2002 over the remaining period of hedging tools end of March 2002 over the remaining period of hedging tools (6–10 years) by using the straight-line method, respectively, in (6–10 years) by using the straight-line method, respectively, in accordance with the transitional measures in the Report No. accordance with the transitional measures in the Report No. 26. The amount of deferred hedge gains under this transitional 26. The amount of deferred hedge gains under this transitional treatment as of March 31, 2008 is 47,576 million yen and the treatment as of March 31, 2007 is 62,011 million yen and the amount allocated to gains or losses for the fiscal year ended amount allocated to gains or losses for the fiscal year ended March 31, 2008 is 14,434 million yen. March 31, 2007 is 21,355 million yen. In addition, Tokio Marine & Nichido applies the deferred In addition, Tokio Marine & Nichido applies the deferred hedge accounting for interest rate swap transactions which hedge accounting for interest rate swap transactions which are used to hedge the interest rate risk related to bonds are used to hedge the interest rate risk related to bonds issued by Tokio Marine & Nichido. Hedge effectiveness is not issued by Tokio Marine & Nichido. Hedge effectiveness is not evaluated since the critical terms of hedged terms and hedging evaluated since the critical terms of hedged terms and hedging instruments are same and thus believed to be highly hedge instruments are same and thus believed to be highly hedge effective. effective. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 52 Year ended March 31, 2008 Year ended March 31, 2007 (April 1, 2007–March 31, 2008) (April 1, 2006–March 31, 2007)

b. Foreign exchange b. Foreign exchange With regard to some currency swap and forward contract With regard to some of Tokio Marine & Nichido’s currency transactions, which are utilized to reduce the future foreign swap and forward contract transactions, which are utilized to exchange risk associated with assets denominated in foreign reduce the future foreign exchange risk associated with assets currencies, Tokio Marine & Nichido applies deferred hedge denominated in foreign currencies, deferred hedge accounting accounting and/or fair value hedge accounting and/or matching and/or fair value hedge accounting and/or matching treatment treatment. Nisshin Fire also applies deferred hedge accounting are applied. As for fair value hedge accounting and matching and matching treatment. As for deferred hedge accounting treatment, hedge effectiveness is not evaluated, since critical and fair value hedge accounting, hedge effectiveness is not terms of hedged items and hedging instruments are same and evaluated, since critical terms of hedged items and hedging thus believed to be highly hedge effective. instruments are the same and thus believed to be highly hedge- With regard to Nisshin Fire’s forward contract transactions, effective. which are utilized to reduce the future foreign exchange risk associated with bonds denominated in foreign currencies, deferred hedge accounting and/or matching treatment are applied. As for deferred hedge accounting, hedge effectiveness is evaluated based on periodical comparison of the market fluctuation of both hedged items and hedging instruments, from the inception of the hedge to the date of the evaluation.

(8) Accounting standards of overseas subsidiaries (8) Accounting standards of overseas subsidiaries The Company complies with accounting standards of the region (No change) or country in which the relevant consolidated subsidiaries are located.

5. Valuation of The Company has adopted the mark-to-market method. (No change) assets and The full valuation method is adopted in valuing assets and liabilities of consolidated subsidiaries at the initial consolidation liabilities of date. consolidated subsidiaries

6. Amortization Negative goodwill recognized as a liability on the consolidated Negative goodwill recognized as a liability on the consolidated of goodwill balance sheets is amortized over 20 years using the straight-line balance sheets is amortized over 20 years using the straight-line method. method. and negative Goodwill recognized as an asset on the consolidated Goodwill recognized as an asset on the consolidated balance goodwill balance sheets is amortized in the following manner. As for the sheets is amortized in the following manner. As for the goodwill goodwill in connection with Tokio Marine & Nichido Financial in connection with Tokio Marine & Nichido Financial Life and Life, the goodwill is amortized over 5 years using the straight- Real Seguros S.A., the goodwill is amortized over 5 years using line method. As for the goodwill in connection with Kiln Ltd, the straight-line method. As for the goodwill in connection with the goodwill is amortized over 10 years using the straight-line Asia Insurance (Malaysia) Berhad and TM Asia Life Malaysia method. Other goodwill is amortized over 5 to 15 years using Bhd., the Company intends to amortize the goodwill over 10 the straight-line method. Other goodwill and negative goodwill years and 15 years, respectively, using the straight-line method, in small amounts are amortized at one time. starting from the fiscal year ending on March 31, 2008. Other goodwill and negative goodwill in small amounts are amortized at one time.

7. Scope of Cash and cash equivalents for the consolidated statements of (No change) cash and cash cash flows consist of cash on-hand, demand deposits and short- term investments with original maturities or redemption of 3 equivalents months or less at the date of acquisition. included in the consolidated statements of cash flows WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 53 Performance

Changes in Significant Accounting Policies

Year ended March 31, 2008 Year ended March 31, 2007 (April 1, 2007–March 31, 2008) (April 1, 2006–March 31, 2007)

_____ (Accounting Standard for Presentation of Net Assets in the Balance Sheets) The Company has adopted “Accounting Standard for Presentation of Net Assets in the Balance Sheets” (Accounting Standards Board of Japan, hereinafter “ASBJ”, Statement No. 5, December 9, 2005) and “Guidance on Accounting Standard for Presentation of Net Assets in the Balance Sheets” (ASBJ Guidance No. 8, December 9, 2005) for the fiscal year ended March 31, 2007. The amount of shareholders’ equity prepared in accordance with the former accounting standard is 3,390,685 million yen.

_____ (Accounting Standard for Business Combinations) The Company has adopted “Accounting Standard for Business Combinations” (Business Accounting Council, October 31, 2003), “Accounting Standard for Business Divestitures” (ASBJ Statement No. 7, December 27, 2005) and “Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures” (ASBJ Guidance No. 10, revised as of December 22, 2006) for the fiscal year ended March 31, 2007. At the end of the previous fiscal year, the consolidated adjustment for goodwill recorded in “Assets” and the amortization of goodwill recorded in “Liabilities” were offset. However, for the fiscal year ended March 31, 2007, in accordance with the application of the “Accounting Standard for Business Combinations” and “Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures”, amortization of goodwill recorded in “Assets” is included in “Underwriting and general administrative expenses” and amortization of negative goodwill recorded in “Liabilities” is included in “Other ordinary income”. As a result, ordinary income and ordinary expenses increased 6,615 million yen, respectively. Additionally, the financial impact of this adoption on segment information is described in “Segment Information”.

_____ (Accounting Standard for Share-based Payment) The Company has adopted “Accounting Standard for Share-based Payment” (ASBJ Statement No. 8, December 27, 2005) and “Guidance on Accounting Standard for Share-based Payment” (ASBJ Guidance No. 11, May 31, 2006) for the fiscal year ended March 31, 2007. As a result, operating profit, ordinary profit and income before income taxes for the fiscal year ended March 31, 2007 each decreased in the amount of 336 million yen.

_____ (Practical Solution on Application of Control Criteria and Influence Criteria to Investment Associations) The Company has adopted “Practical Solution on Application of Control Criteria and Influence Criteria to Investment Associations” (ASBJ Practical Issues Task Force No.20, September 8, 2006) for the fiscal year ended March 31, 2007. As a result, 24 investment associations became our subsidiaries and affiliates. However, each of these associations is small in scale in terms of its total assets, sales, net income or loss for the period, and retained earnings. As these associations are not considered to materially affect any reasonable determination as to the Group’s financial conditions and results of operations, they are excluded from the consolidations and affiliates accounted for by the equity method. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 54 Changes in Presentation

Year ended March 31, 2008 Year ended March 31, 2007 (April 1, 2007–March 31, 2008) (April 1, 2006–March 31, 2007)

Consolidated balance sheets Consolidated balance sheets 1. In accordance with the amendment of the Enforcement Regulations of the In accordance with the revision of the Enforcement Regulations of the Insurance Business Law of Japan, the reserve for retirement benefits for Insurance Business Law, the following changes were made to the presentation directors and corporate auditors that was included in “reserve for retirement of the consolidated balance sheets. benefits” as of the end of the year ended March 31, 2007 is presented as (1) “Property and equipment” presented on the previous consolidated balance “reserve for retirement benefits for directors and corporate auditors” as of sheets is presented as “Tangible fixed assets”. the end of the year ended March 31, 2008. (2) “Consolidated adjustment account” presented on the previous consolidated The amount of the reserve for retirement benefits for directors and balance sheets is presented as “Intangible fixed assets” or “Negative corporate auditors included in “reserve for retirement benefits” as of the goodwill”. end of the year ended March 31, 2007 was 369 million yen. (3) Leasehold, etc. included in “Other assets” presented on the previous consolidated balance sheets is presented as “Intangible fixed assets”. 2. “Payables under securities lending transactions”, which was included in “Other liabilities” as of the end of the fiscal year ended March 31, 2007, is specifically presented as a comprising item of “Other liabilities” as of the end of the year ended March 31, 2008, since the amount of the item exceeded 5% of the sum of liabilities and net assets. The amount of “Payables under securities lending transactions” as of the end of the year ended March 31, 2007 was 840,706 million yen.

_____ Consolidated statements of income In accordance with the revision of the Enforcement Regulations of the Insurance Business Law, the following changes were made to the presentation in the consolidated statements of income. (1) “Amortization of goodwill” in “Other ordinary income” presented in the previous consolidated statements of income is included in “Amortization of negative goodwill” in “Other ordinary income” and “Underwriting and general administrative expenses”. (2) “Gains (Losses) on sales of properties” presented in the previous consolidated statements of income is presented as “Gains (Losses) on sales of fixed assets”.

Consolidated statements of cash flows Consolidated statements of cash flows In accordance with the amendment of the Enforcement Regulations of the In accordance with the revision of the Enforcement Regulations of the Insurance Business Law of Japan, the increase in reserve for retirement benefits Insurance Business Law, the following changes were made to the presentation for directors and corporate auditors that was included in “Increase in reserve in the consolidated statements of cash flows. for retirement benefits” for the year ended March 31, 2007 is presented (1) “Amortization of consolidated adjustment account” in “Other ordinary as “Increase in reserve for retirement benefits for directors and corporate income” in the previous consolidated statements of cash flows is presented auditors” for the year ended March 31, 2008. as “Amortization of goodwill” and “Amortization of negative goodwill”. (2) “Loss (profit) related to property and equipment” in the previous consolidated statements of cash flows is presented as “Loss (profit) related to tangible fixed assets”. (3) “Purchases of property and equipment” in the previous consolidated statements of cash flows is presented as “Purchases of tangible fixed assets”. “Proceeds from sales of property and equipment” in the previous consolidated statements of cash flows is presented as “Proceeds from sales of tangible fixed assets”. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 55 Performance

Notes to Consolidated Balance Sheets

Year ended March 31, 2008 Year ended March 31, 2007 (April 1, 2007–March 31, 2008) (April 1, 2006–March 31, 2007)

*1 Accumulated depreciation of tangible fixed assets is 354,952 million yen and *1 Accumulated depreciation of tangible fixed assets is 336,544 million yen and advanced depreciation of such assets is 24,613 million yen. The advanced advanced depreciation of such assets is 25,728 million yen. depreciation of 9 million yen was deducted from the acquisition costs for the tangible fixed assets acquired using government and other subsidies during the year ended March 31, 2008.

*2 Securities of non-consolidated subsidiaries and affiliates, etc. are provided as *2 Securities of non-consolidated subsidiaries and affiliates, etc. are provided as follows. follows. (Yen in millions) (Yen in millions) Securities (equity) 92,356 Securities (equity) 105,444 Securities (partnership) 30,824 Securities (partnership) 23,564

*3 Of loans, the total amount of loans to borrowers in bankruptcy, past due *3 Of loans, the total amount of loans to borrowers in bankruptcy, past due loans, loans contractually past due for three months or more, and restructured loans, loans contractually past due for three months or more, and restructured loans is 11,225 million yen. The breakdown is as set forth below. loans is 12,778 million yen. The breakdown is as set forth below.

(1) The amount of loans to borrowers in bankruptcy is 767 million yen. (1) The amount of loans to borrowers in bankruptcy is 277 million yen. Loans that are past due for a certain period, or for other reasons, are generally Loans that are past due for a certain period, or for other reasons, are generally placed on non-accrual status when substantial doubt is considered to exist as placed on non-accrual status when substantial doubt is considered to exist as to the ultimate collectibility either of principal or interest (“Non-accrual status to the ultimate collectibility either of principal or interest (“Non-accrual status loans”; any part of bad debt written-off is excluded.). Loans to borrowers loans”; any part of bad debt written-off is excluded.). Loans to borrowers in bankruptcy represent non-accrual loans after a partial charge-off of in bankruptcy represent non-accrual loans after a partial charge-off of claims deemed uncollectible, which are defined in Article 96, paragraph 1, claims deemed uncollectible, which are defined in Article 96, paragraph 1, subparagraph 3 (a) to (e) and subparagraph 4 of the Enforcement Ordinance of subparagraph 3 (a) to (e) and subparagraph 4 of the Enforcement Ordinance of the Corporation Tax Law (Ordinance No. 97, 1965). the Corporation Tax Law (Ordinance No. 97, 1965).

(2) The amount of past due loans is 5,940 million yen. (2) The amount of past due loans is 5,451 million yen. Past due loans are non-accrual status loans, other than loans to borrowers in Past due loans are non-accrual status loans, other than loans to borrowers in legal bankruptcy and loans on which interest payments are deferred in order to legal bankruptcy and loans on which interest payments are deferred in order to assist business restructuring or financial recovery of the borrowers. assist business restructuring or financial recovery of the borrowers.

(3) There are no loans contractually past due for three months or more. (3) The amount of loans contractually past due for three months or more is 2 Loans contractually past due for three months or more are defined as loans million yen. on which any principal or interests payments are delayed for three months Loans contractually past due for three months or more are defined as loans or more from the date following the due date. Loans classified as loans to on which any principal or interests payments are delayed for three months borrowers in bankruptcy and past due loans are excluded. or more from the date following the due date. Loans classified as loans to borrowers in bankruptcy and past due loans are excluded.

(4) The amount of restructured loans is 4,517 million yen. (4) The amount of restructured loans is 7,047 million yen. Restructured loans are loans on which concessions (e.g. reduction of the stated Restructured loans are loans on which concessions (e.g. reduction of the stated interest rate, deferral of interest payment, extension of the maturity date, interest rate, deferral of interest payment, extension of the maturity date, forgiveness of debt) are granted to borrowers in financial difficulties to assist forgiveness of debt) are granted to borrowers in financial difficulties to assist them in their corporate restructuring or financial recovery by improving their them in their corporate restructuring or financial recovery by improving their ability to repay creditors. Restructured loans do not include loans classified as ability to repay creditors. Restructured loans do not include loans classified as loans to borrowers in bankruptcy, past due loans or loans past due for three loans to borrowers in bankruptcy, past due loans or loans past due for three months or more. months or more.

*4 The value of assets pledged as collateral totals 387,607 million yen in *4 The value of assets pledged as collateral totals 426,621 million yen in securities, 33,081 million yen in deposits and savings and 60 million yen in securities, 1,626 million yen in deposits and savings and 1 million yen in other other assets. Collateralized debt obligations are held to the value of 59,995 assets. Collateralized debt obligations are held to the value of 11,055 million million yen in outstanding claims, 61,809 million yen in underwriting reserve, yen in outstanding claims, 29,320 million yen in underwriting reserve, 23,561 29,363 million yen in corporate bonds and 66,259 million yen in other debts. million yen in corporate bonds and 122,971 million yen in other debts.

5 Securities received from securities borrowing transactions are 107,854 million 5 Securities received from securities borrowing transactions are 161,841 million yen at market value. yen at market value.

*6 Securities include securities lent under loan agreements of 1,540,899 million *6 Securities include securities lent under loan agreements of 913,146 million yen. yen. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 56 Year ended March 31, 2008 Year ended March 31, 2007 (April 1, 2007–March 31, 2008) (April 1, 2006–March 31, 2007)

*7 The outstanding balance of undrawn committed loans is as follows. *7 The outstanding balance of undrawn committed loans is as follows. (Yen in millions) (Yen in millions) Total loan commitments 127,420 Total loan commitments 128,501 Balance of drawn committed loans 16,486 Balance of drawn committed loans 12,659 Undrawn loan commitments 110,934 Undrawn loan commitments 115,842

8 The amount of both assets and liabilities for separate account as prescribed in 8 The amount of both assets and liabilities for separate account as prescribed in Article 118 of the Insurance Business Law totals 1,967,195 million yen. Article 118 of the Insurance Business Law totals 1,786,478 million yen.

9 Tokio Marine & Nichido guarantees the liabilities of some of its subsidiaries. The 9 Tokio Marine & Nichido guarantees the liabilities of some of its subsidiaries. The balance of the guarantees to its subsidiaries as of March 31, 2008 is as follows. balance of the guarantees to its subsidiaries as of March 31, 2007 is as follows. (Yen in millions) (Yen in millions) TNUSInsuranceCompany 870 TNUSInsuranceCompany 9,280 TokioMarineCompaniade Seguros,S.A.deC.V. 4,727 TokioMarineCompaniade Seguros,S.A.deC.V. 1,621 Tokio Marine Pacific Insurance Limited 1,818 Total 10,902 Total 7,416

Notes to Consolidated Statements of Income

Year ended March 31, 2008 Year ended March 31, 2007 (April 1, 2007–March 31, 2008) (April 1, 2006–March 31, 2007)

*1 Major components of business expenses *1 Major components of business expenses (Yen in millions) (Yen in millions) Agency commissions, etc. 397,020 Agency commissions, etc. 418,020 Salaries 202,185 Salaries 193,162

Business expenses consist of “Loss adjustment expenses”, “Operating and Business expenses consist of “Loss adjustment expenses”, “Operating and general administrative expenses” and “Agency commissions and brokerage” as general administrative expenses” and “Agency commissions and brokerage” as shown in the accompanying consolidated statements of income. shown in the accompanying consolidated statements of income.

*2 The Company recognized impairment losses on the following properties *2 The Company recognized impairment losses on the following properties during the year ended March 31, 2008. during the year ended March 31, 2007.

Impairment loss (Yen in millions) Impairment loss (Yen in millions) Purpose of use Category Location Purpose of use Category Location Land Building Others Total Land Building Others Total Properties Land and 2 properties Properties Land and 5 properties for rent buildings including a for rent buildings including a building in 40 62 — 103 building in 389 379 — 769 Imabari City, Yodogawa- Ehime Pref. ku, Osaka Idle or Land and 46 properties City. potential buildings including a Idle or Land and 64 properties disposal building in potential buildings including a 1,870 924 47 2,842 properties Utsunomiya disposal warehouse 1,751 1,723 357 3,832 City, Tochigi properties in Higashi- Pref. asai County, Others Goodwill — — — 5,707 5,707 Shiga Pref. Total — — 1,911 987 5,755 8,654 Total — — 2,141 2,103 357 4,602 WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 57 Performance

Year ended March 31, 2008 Year ended March 31, 2007 (April 1, 2007–March 31, 2008) (April 1, 2006–March 31, 2007)

(1) Properties, etc. Properties are classified as follows: (a) properties used for insurance businesses Properties are classified as follows: (a) properties used for insurance businesses are grouped as a whole and (b) other properties including properties for rent are grouped as a whole and (b) other properties including properties for rent and idle or potential disposal properties are classified on an individual basis. and idle or potential disposal properties are classified on an individual basis. As to properties for rent and idle or potential disposal properties that As to properties for rent and idle or potential disposal properties that depreciated in value mainly due to the fall in the real estate market, the depreciated in value mainly due to the fall in the real estate market, the Company wrote off the excess of the carrying values of such properties over Company wrote off the excess of the carrying values of such properties over the recoverable values and recognized any such write off as an impairment loss the recoverable values and recognized any such write off as an impairment (4,602 million yen), in extraordinary item. loss, in extraordinary item. The Company determined the recoverable value of a property by selecting The Company determined the recoverable value of a property by selecting the higher of the net sale price or the utility value. The net sale prices were the higher of the net sale price or the utility value. The net sale prices were calculated as the assessed values established by a real estate-appraiser, minus calculated as the assessed values established by a real estate-appraiser, minus the anticipated expenses for disposing of the relevant properties. The utility the anticipated expenses for disposing of the relevant properties. The utility values were calculated by discounting the future cash flows to net present values were calculated by discounting the future cash flows to net present values at a rate of 5.8% to 8.7%. values at a rate of 8.7% to 8.8%. (2) Goodwill With respect to the goodwill relating to Real Seguros S.A., an impairment loss of 5,707 million yen was recognized and recorded as ”extraordinary losses” for the year ended March 31, 2008, since the profit projected in the business plan at the time of the acquisition of shares of Real Seguros S.A. has been deemed to be not achievable. In addition, with respect to the amount of goodwill that relates to Tianan Insurance Company Limited, an impairment loss of 2,140 million yen was recognized and recorded as “equity in losses of affiliates” in “Other ordinary expenses” for the year ended March 31, 2008.

*3 The main components of other extraordinary gains are 26,151 million yen *3 The main component of other extraordinary gains is 988 million yen resulting resulting from the transfer of a portion of the corporate pension fund to from partial terminations of the retirement benefit plans due to retirement of a defined-contribution pension plan and 1,777 million yen resulting from employees who applied for a carrier change. correction of income in previous period related to hedge accounting.

*4 The main components of other extraordinary losses are extraordinary *4 The main component of other extraordinary losses is 8,790 million yen depreciation of tangible fixed assets of 5,692 million yen, provision for resulting from financial support to employees for their carrier change. reserve for retirement of tangible fixed assets of 3,773 million yen and prior period adjustments of earnings and expenses in connection with the hedge accounting of 4,855 million yen.

Notes to Consolidated Statement of Changes in Shareholders’ Equity Year ended March 31, 2008 (April 1, 2007–March 31, 2008) 1. Class and number of issued shares and treasury stock

(Unit: thousand shares) Increase during Decrease during Number of shares as Number of shares as the year ended the year ended of March 31, 2007 of March 31, 2008 March 31, 2008 March 31, 2008 Issued shares Common stock 824,524 — 20,000 804,524 Total 824,524 — 20,000 804,524 Treasury stock Common stock 1,187 21,175 20,069 2,293 Total 1,187 21,175 20,069 2,293 1. The decrease of 20,000 thousand shares is attributable to a cancellation of shares of treasury stock. 2. The increase of 21,175 thousand shares of treasury stock is attributable to an acquisition of 21,074 thousand shares to implement financial policies. 3. The decrease of 20,069 thousand shares of treasury stock is attributable to a cancellation of shares, decreasing treasury stock by 20,000 thousand.

2. Stock acquisition rights (including those owned by the Company)

Category Nature of stock acquisition rights Amount as of March 31, 2008 (yen in millions) The Company (parent company) Stock acquisition rights as stock options 619 WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 58 3.Dividends (1) Amount of dividends

Amount of dividends Resolution Class of stock Dividends per share Record date Effective date paid Ordinary general meeting of shareholders held on Common stock 17,290 million yen 21 yen March 31, 2007 June 26, 2007 June 25, 2007 Meeting of the board of directors held on September 30, December 10, Common stock 14,674 million yen 18 yen November 20, 2007 2007 2007

(2) Dividends of which the record date falls within the year ended March 31, 2008, and the effective date falls after March 31, 2008.

Amount of Dividends Resolution Class of stock Source of dividends Record date Effective date dividends paid per share Ordinary general meeting of shareholders held on 24,066 Retained Common stock 30 yen March 31, 2008 June 24, 2008 June 23, 2008 million yen earnings

Year ended March 31, 2007 (April 1, 2006–March 31, 2007) 1. Class and number of issued shares and treasury stock

(Unit: thousand shares) Increase during Decrease during Number of shares as of Number of shares as of the year ended the year ended March 31, 2006 March 31, 2007 March 31, 2007 March 31, 2007 Issued shares Common stock 1,687 841,837 19,000 824,524 Total 1,687 841,837 19,000 824,524 Treasury stock Common stock 6 39,308 38,127 1,187 Total 6 39,308 38,127 1,187 Notes 1. The increase of 841,837 thousand shares of issued shares is due to a stock split. 2. The decrease of 19,000 thousand shares is attributable to a cancellation of shares of treasury stock. 3. The increase of 39,308 thousand shares of treasury stock is attributable to a stock split, increasing treasury stock by 27,059 thousand, and an acquisition of 12,161 thousand shares, to implement financial policies and a share exchange. 4. The decrease of 38,127 thousand shares of treasury stock is attributable to a share exchange, decreasing treasury stock by 19,114 thousand, and a cancellation of shares, decreasing treasury stock by 19,000 thousand.

2. Stock acquisition rights (including those owned by the Company)

Category Nature of stock acquisition rights Amount as of March 31, 2007 (yen in millions) The Company (parent company) Stock acquisition rights as stock options 336

3. Dividends (1) Amount of dividends

Amount of Resolution Class of stock Dividends per share Record date Effective date dividends paid Ordinary general meeting of shareholders held Common stock 25,207 million yen 15,000 yen March 31, 2006 June 28, 2006 on June 28, 2006 Meeting of the board of directors held September 30, December 11, Common stock 12,532 million yen 15 yen on November 22, 2006 2006 2006 Note: Effective September 30, 2006, the Company conducted a stock split of its shares of common stock whereby one share was split into 500 shares.

(2) Dividends of which the record date falls within the year ended March 31, 2007, and the effective date falls after March 31, 2007.

Amount of Source of Dividends Resolution Class of stock Record date Effective date dividends paid dividends per share Ordinary general meeting of shareholders held on 17,290 million Retained Common stock 21 yen March 31, 2007 June 26, 2007 June 25, 2007 yen earnings WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 59 Performance

Notes for Consolidated Statements of Cash Flows

Year ended March 31, 2008 Year ended March 31, 2007 (April 1, 2007–March 31, 2008) (April 1, 2006–March 31, 2007)

*1 Reconciliation of cash and cash equivalents at the end of the year to the *1 Reconciliation of cash and cash equivalents at the end of the year to the amounts disclosed in the consolidated balance sheets is provided as follows: amounts disclosed in the consolidated balance sheets is provided as follows: (As of March 31, 2008) (Yen in millions) (As of March 31, 2007) (Yen in millions) Cash and deposits 794,528 Cash and deposits 784,195 Call loans 199,725 Call loans 106,154 Monetary receivables bought 1,712,207 Monetary receivables bought 1,320,850 Securities 12,138,621 Securities 12,683,128 Time deposits with initial term over three months Time deposits with initial term over three months (120,718) (96,016) to maturity to maturity Monetary receivables bought not included in cash Monetary receivables bought not included in cash (639,661) (499,063) equivalents equivalents Securities not included in cash equivalents (12,096,006) Securities not included in cash equivalents (12,629,242) Cash and cash equivalents (1,988,696) Cash and cash equivalents 1,670,006

2 Cash flows from investing activities include cash flows arising from asset 2 (No change) management relating to the insurance business.

*3 Breakdown of assets and liabilities of newly consolidated subsidiaries *3 Breakdown of assets and liabilities of newly consolidated subsidiaries The breakdown of assets and liabilities of newly consolidated subsidiary, Kiln The breakdown of assets and liabilities of newly consolidated subsidiaries, Ltd at the commencement of the consolidation is as follows. The following also Asia General Holdings Limited, TM Asia Insurance Singapore Ltd., TM Asia shows the acquisition cost of the shares of Kiln Ltd and amounts paid (net) for Singapore Ltd., Asia Insurance (Malaysia) Berhad and TM Asia Life Malaysia the acquisition of such shares. Bhd. (hereinafter the “Asia General Holdings Limited related five companies”), (Yen in millions) is as follows. The following also shows the acquisition cost of the shares of the Assets 207,439 Asia General Holdings related five companies and amounts paid (net) for the acquisition of such shares. (Securities) 79,167 (Yen in millions) Goo dwill 29,596 Assets 322,027 Liabilities (142,914) (Securities) 190,156 (Underwriting funds) (82,746) Goodwill 8,787 Acquisition cost of KilnLtd shares 94,122 Liabilities (259,069) Cash and cash equivalents of KilnLtd (52,199) (Underwriting funds) (234,579) Net amounts paid for the acquisition of KilnLtd shares 41,922 Negative goodwill (18,375) Minority interest (8,867) Acquisition cost of the share of the Asia General 44,503 Holdings related Five companies Cash and cash equivalents of the Asia General (41,252) Holdings related Five companies Net amounts paid for the acquisition of the shares of the Asia General Holdings related five 3,251 companies’ shares

_____ 4 Significant non-monetary transactions The Company completed a stock-for-stock exchange with Nisshin Fire, making it a wholly-owned subsidiary, in the fiscal year ended March 31, 2007. In connection with this stock exchange, 19,114,034 shares of the common stock of the Company, held as treasury stock, were issued. (Yen in millions)

Amount of treasury stock issued in connection 79,196 with the stock-for-stock exchange Increase of capital surplus in connection with the 2,994 stock-for-stock exchange WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 60 Lease Transactions

Year ended March 31, 2008 Year ended March 31, 2007 (April 1, 2007–March 31, 2008) (April 1, 2006–March 31, 2007)

1. Finance lease other than those in which ownership of leased property is 1. Finance lease other than those in which ownership of leased property is deemed to be transferred to the lessees deemed to be transferred to the lessees

q Acquisition cost, accumulated depreciation and net book value of leased q Acquisition cost, accumulated depreciation and net book value of leased assets; assets; (Yen in millions) (Yen in millions)

Accumulated Accumulated Acquisition cost Net book value Acquisition cost Net book value depreciation depreciation Movables 5,917 3,531 2,386 Movables 5,609 3,210 2,399

Acquisition cost includes interest payable thereon because the balance of (No change) future lease payment accounts for a small portion of the balance of tangible fixed assets.

w Balance of future lease payments; w Balance of future lease payments; (Yen in millions) (Yen in millions) Due within one year 1,170 Due within one year 1,179 Due after one year 1,215 Due after one year 1,219 Total 2,386 Total 2,399

Future lease payment includes interest payable thereon because the balance of (No change) future lease payment accounts for a small portion of the balance of tangible fixed assets.

e Lease payment, reversal of impairment loss on leased assets, depreciation e Lease payment, reversal of impairment loss on leased assets, depreciation equivalent and impairment losses; equivalent and impairment losses; (Yen in millions) (Yen in millions) Lease payment 1,473 Lease payment 1,494 Depreciation equivalent 1,473 Depreciation equivalent 1,494

r Computation of depreciation equivalent; r Computation of depreciation equivalent; Depreciation equivalent is determined on the straight-line method over the (No change) lease period, with no residual value.

2. Operating lease 2. Operating lease Future lease payments Future lease payments (Yen in millions) (Yen in millions) Due within one year 1,041 Due within one year 691 Due after one year 4,527 Due after one year 2,322 Total 5,568 Total 3,014

(Impairment losses) (Impairment losses) There is no impairment loss allocated to the leased assets. (No change) WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 61 Performance

Securities 1. Trading securities

(Yen in millions) As of March 31, 2008 As of March 31, 2007 Type Valuation gains (losses) included in Valuation gains (losses) included in Amount shown on balance sheets earnings recognized on Amount shown on balance sheets earnings recognized on statements of income statements of income Trading securities 2,216,467 (70,022) 1,926,658 152,094 (Note)

As of March 31, 2008 As of March 31, 2007

As of March 31, 2008, the above figures include amounts related to As of March 31, 2007, the above figures include amounts related to commercial papers (carrying amount 172 million yen and valuation losses commercial papers (carrying amount 336 million yen), which are presented as recognized on statements of income 0 million yen), which are presented as “Monetary receivables bought” on the consolidated balance sheets. “Monetary receivables bought” on the consolidated balance sheets.

2. Bonds held to maturity with fair value

(Yen in millions) As of March 31, 2008 As of March 31, 2007

Type Carrying amount Carrying amount shown on balance Fair value Difference shown on balance Fair value Difference sheets sheets Public and 751,953 785,441 33,487 573,695 594,709 21,013 corporate bonds Gross unrealized gains Foreign securities 12,180 12,287 107 — — — Subtotal 764,133 797,728 33,594 573,695 594,709 21,013 Public and 492,741 450,451 (42,290) 635,217 589,706 (45,511) corporate bonds Gross unrealized losses Foreign securities 19,239 18,819 (419) 28,992 28,992 — Subtotal 511,980 469,270 (42,709) 664,209 618,698 (45,511) Total 1,276,114 1,266,998 (9,115) 1,237,905 1,213,408 (24,497)

3. Bonds earmarked for policy reserve with fair value

(Yen in millions) As of March 31, 2008 As of March 31, 2007

Type Carrying amount Carrying amount shown on balance Fair value Difference shown on balance Fair value Difference sheets sheets Public and 73,001 76,078 3,077 54,686 55,000 314 corporate bonds Gross unrealized gains Foreign securities 208,967 222,631 13,664 10,521 10,747 226 Subtotal 281,968 298,710 16,741 65,207 65,748 540 Public and 3,974 3,953 (21) 4,630 4,588 (42) corporate bonds Gross unrealized losses Foreign securities 2,984 2,910 (73) 226,722 221,512 (5,210) Subtotal 6,958 6,864 (94) 231,353 226,100 (5,252) Total 288,927 305,574 16,647 296,560 291,849 (4,711) WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 62 4. Other securities (available for sale) with fair value

(Yen in millions) As of March 31, 2008 As of March 31, 2007

Type Carrying amount Carrying amount Original cost shown on balance Difference Original cost shown on balance Difference sheets sheets Public and 2,286,053 2,348,538 62,484 1,205,470 1,228,297 22,827 corporate bonds Carrying value Stock 1,084,620 3,270,604 2,185,983 1,180,893 4,576,130 3,395,236 which exceeds the Foreign securities 526,403 597,711 71,307 462,629 536,483 73,853 original cost Other (Note 1) 71,904 83,140 11,236 353,954 392,385 38,430 Sub-total 3,968,982 6,299,994 2,331,012 3,202,948 6,733,296 3,530,348 Public and 809,829 786,729 (23,100) 1,755,873 1,720,960 (34,912) corporate bonds Carrying value which does Stock 157,412 140,724 (16,687) 101,213 93,248 (7,964) not exceed the Foreign securities 759,101 706,697 (52,403) 498,069 492,285 (5,784) original cost Other (Note 2) 287,516 248,019 (39,497) 57,480 57,233 (247) Sub-total 2,013,860 1,882,171 (131,689) 2,412,636 2,363,728 (48,908) Total 5,982,842 8,182,165 2,199,323 5,615,584 9,097,024 3,481,440

(Notes) As of March 31, 2008 As of March 31, 2007

1. ”Other” includes foreign mortgage-backed securities (original cost 42,969 1. ”Other” includes foreign mortgage-backed securities (original cost 230,545 million yen, amount shown on the consolidated balance sheets 45,720 million million yen; amount shown on the consolidated balance sheets 247,342 yen, difference 2,750 million yen) which are presented as monetary receivables million yen; difference 16,796 million yen) which are presented as monetary bought carrying amount on the consolidated balance sheets. receivables bought carrying amount on the consolidated balance sheets.

2. ”Other” includes foreign mortgage-backed securities (original cost 214,098 2. ”Other” includes negotiable certificate of deposits (original cost 4,693 million million yen; amount shown on the consolidated balance sheets, 180,930 yen; amount shown on the consolidated balance sheets, 4,693 million yen) million yen; difference (-) 33,168 million yen) which are presented as monetary which are included in “Cash and deposits” and foreign mortgage-backed receivables bought in the carrying amount on the consolidated balance sheets. securities (original cost 36,536 million yen; amount shown on the consolidated balance sheets, 36,428 million yen; difference (-) 108 million yen) which are presented as monetary receivables bought in the carrying amount on the consolidated balance sheets.

3. Impairment losses amounting to 32,378 million yen were recognized for 3. Impairment losses amounting to 3,496 million yen were recognized for “Other “Other securities” with fair value. Impairment losses are in principle recognized securities” with fair value. Impairment losses are in principle recognized on on securities for which fair values have declined 30% or more versus their securities for which fair values have declined 30% or more versus their book book values at the end of the period. values at the end of the period.

5. Bonds held to maturity with fair value that were sold None.

6. Bonds earmarked for policy reserve that were sold

(Yen in millions) Year ended March 31, 2008 Year ended March 31, 2007 (April 1, 2007–March 31, 2008) (April 1, 2006–March 31, 2007) Type Sale proceeds Total gains on sale Total of losses on sale Sale proceeds Total gains on sale Total of losses on sale Bonds earmarked for policy reserve 13,787 934 16 15,987 1,317 4

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

(Yen in millions) Year ended March 31, 2008 Year ended March 31, 2007 (April 1, 2007–March 31, 2008) (April 1, 2006–March 31, 2007) Type Sale proceeds Total gains on sale Total losses sale Sale proceeds Total gains on sale Total losses on sale Other securities 1,521,938 58,037 15,861 1,840,236 76,795 5,614 WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 63 Performance

(Notes)

Year ended March 31, 2008 Year ended March 31, 2007 (April 1, 2007–March 31, 2008) (April 1, 2006–March 31, 2007)

The above figures include amounts related to foreign mortgage securities, etc. The above figures include amounts related to commercial papers, etc. (sale value, (sale value, 228,141 million yen; profit on sale, 58 million yen; loss on sale, 1,447 68,079 million yen; profit on sale, 692 million yen; loss on sale, 3 million yen), million yen), which are presented as “Monetary receivables bought” on the which are presented as “Monetary receivables bought” on the consolidated consolidated balance sheets. balance sheets.

8. Major securities not stated at fair value (1) Bonds held to maturity None.

(2) Bonds earmarked for policy reserve None.

(3) Other securities

(Yen in millions) Type As of March 31, 2008 As of March 31, 2007 Public and corporate bonds 0 0 Stock 163,749 171,924 Foreign securities 89,078 90,419 Other 1,558,061 1,102,478 (Notes)

As of March 31, 2008 As of March 31, 2007

“Other” includes negotiable certificate of deposits (116,840 million yen), “Other” includes negotiable certificate of deposits (134,502 million yen), which are presented as “Cash and deposits” and commercial papers, etc. which are presented as “Cash and deposits” and commercial papers, etc. (1,415,460 million yen), which are presented as “Monetary receivables (945,549 million yen), which are presented as “Monetary receivables bought” bought” on the consolidated balance sheets. on the consolidated balance sheets.

9. Change in the purpose of holding None.

10. Maturity schedule of other securities with maturity, bonds held to maturity and bonds earmarked for policy reserve

(Yen in millions) As of March 31, 2008 As of March 31, 2007 Type Within one year Over 1 to 5 years Over 5 to 10 years Over 10 years Within one year Over 1 to 5 years Over 5 to 10 years Over 10 years Government bonds 235,308 435,145 748,421 1,950,228 425,419 319,008 627,122 1,896,185 Municipal bonds 9,222 52,715 133,621 — 3,901 57,814 125,422 — Corporate bonds 194,918 428,213 213,030 56,111 152,148 424,070 126,265 60,129 Stock — 100 — — —. 100 — — Foreign securities 377,375 535,651 243,885 43,247 146,347 562,510 207,066 39,946 Other 1,536,712 48,750 41,548 138,073 1,089,728 111,220 79,756 92,506 Total 2,353,537 1,500,577 1,380,507 2,187,661 1,817,545 1,474,724 1,165,633 2,088,768 (Notes)

As of March 31, 2008 As of March 31, 2007

“Other” includes negotiable certificate of deposits (114,616 million yen for “Other” includes negotiable certificate of deposits (137,357 million yen for within one year, 1,534 million yen for 1 to 5 years, 690 million yen for 5 to 10 within one year, 1,669 million yen for 1 to 5 years, 168 million yen for 5 to 10 years), which are presented as “Cash, deposits and savings,” and commercial years), which are presented as “Cash, deposits and savings,” and commercial papers, etc. (1,418,789 million yen for within one year, 44,830 million yen for papers, etc. (951,650 million yen for within one year, 106,896 million yen for 1 1 to 5 years, 40,418 million yen for 5 to 10 years, 138,073 million yen for over to 5 years, 78,258 million yen for 5 to 10 years, 92,506 million yen for over ten ten years), which are presented as “Monetary receivables bought” respectively years), which are presented as “Monetary receivables bought” respectively on on the consolidated balance sheets. the consolidated balance sheets. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 64 Money Trusts 1. Money trusts held for trading purposes

(Yen in millions) As of March 31, 2008 As of March 31, 2007

Valuation gains (losses) Valuation gains (losses) Item Carrying amount Carrying amount included in earnings included in earnings Money trust 34,028 (729) 67,602 1,815

2. Money trusts held to maturity None.

3. Money trusts other than those held to maturity or those held for trading purposes

As of March 31, 2008 As of March 31, 2007

1. There are no individually managed money trusts valued at market value. 1. There are no individually managed money trusts valued at market value.

2. Jointly managed money trust is included in the balance sheets at the 2. Jointly managed money trust is included in the balance sheets at the acquisition cost of 5,186 million yen. acquisition cost of 14,487 million yen.

Derivative Transactions

1. Details of transactions

Year ended March 31, 2008 Year ended March 31, 2007 (April 1, 2007–March 31, 2008) (April 1, 2006–March 31, 2007)

(1) Types of transactions (1) Types of transactions Consolidated subsidiaries are mainly engaged in the following derivative Consolidated subsidiaries are mainly engaged in the following derivative transactions; transactions;

a. Currency-related transactions: Forward contracts, currency swaps, currency a. Currency-related transactions: Forward contracts, currency swaps, currency options, etc. options, etc.

b. Interest rate-related transactions: Interest rate futures, interest rate options, b. Interest rate-related transactions: Interest rate futures, interest rate futures interest rate swaps, interest rate swaptions, etc. options, interest rate swaps, interest rate swaptions, etc.

c. Equity-related transactions: Equity index futures, equity index options, etc. c. Equity-related transactions: Equity index futures, equity index options, etc.

d. Bond-related transactions: Bond futures, over-the-counter bond options, d. Bond-related transactions: Bond futures, bond futures options, over-the- etc. counter bond options, etc.

e. Other transactions: Credit derivatives e. Other transactions: Credit derivatives, weather derivatives, etc.

(2) Objectives and policies of transactions (2) Objectives and policies of transactions The main purposes of the derivative transactions are as follows. The main purposes of the derivative transactions are as follows

a. Risk management related to assets and liabilities held by the Millea a. Risk management related to assets and liabilities held by the Millea Holdings’ consolidated subsidiaries: Holdings’ consolidated subsidiaries: In order to adequately manage risks related to assets and liabilities held by In order to adequately manage risks related to assets and liabilities held by the consolidated subsidiaries (ALM: Asset Liability Management) and reduce the consolidated subsidiaries (ALM: Asset Liability Management) and reduce losses arising from the future fluctuations in interest rates, exchange rates losses arising from the future fluctuations in interest rates, exchange rates and stock prices. and stock prices.

b. Investment activities b. Investment activities The Company engages in various derivative transactions in order to (No change) maximize interest gains within a certain risk limit.

c. Response to customer needs c. Response to customer needs The Company carries out derivative transactions in order to provide a wide (No change) range of financial instruments that meet customers’ hedging needs as well as their diverse and complex investment/funding style. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 65 Performance

Year ended March 31, 2008 Year ended March 31, 2007 (April 1, 2007–March 31, 2008) (April 1, 2006–March 31, 2007)

The actual transactions are carried out in accordance with the “Investment The actual transactions are carried out in accordance with the “Investment Guidelines” under which types of financial instruments, specific risk limits, Guidelines” under which purposes of derivatives, types of financial and actions taken against any losses arising from such transactions, etc. are instruments, notional principal, specific risk limits, and actions taken against classified and prescribed according to each investment style. any losses arising from such transactions, etc. are classified and prescribed according to each investment style Accounting policies for significant hedging activities are as follows. Accounting policies for significant hedging activities are as follows. q Interest rate q Interest rate To mitigate interest rate fluctuation risks associated with long-term insurance To mitigate interest rate fluctuation risks associated with long-term insurance policies, Tokio Marine & Nichido and Tokio Marine & Nichido Life implement policies, Tokio Marine & Nichido and Tokio Marine & Nichido Life implement the Asset Liability Management designed to manage such risks by evaluating the Asset Liability Management designed to manage such risks by evaluating and analyzing financial assets and insurance liabilities simultaneously. and analyzing financial assets and insurance liabilities simultaneously.

As for some of interest rate swap transactions that are utilized to manage As for some of interest rate swap transactions that are utilized to manage such risks, Tokio Marine & Nichido and Tokio Marine & Nichido Life have such risks, Tokio Marine & Nichido and Tokio Marine & Nichido Life have applied deferral hedge treatment and evaluated hedge effectiveness based applied deferral hedge treatment and evaluated hedge effectiveness based upon the Industry Audit Committee Report No. 26, “Accounting and Auditing upon the Industry Audit Committee Report No. 26, “Accounting and Auditing Treatments related to Adoption of Accounting for Financial Instruments in Treatments related to Adoption of Accounting for Financial Instruments in the Insurance Industry” (issued by the Japanese Institute of Certified Public the Insurance Industry” (issued by the Japanese Institute of Certified Public Accountant (“JICPA”) on September 3, 2002—hereinafter called “Report No. Accountant (“JICPA”) on September 3, 2002—hereinafter called “Report No. 26”). 26”). Hedge effectiveness is evaluated by examining the interest rate conditions Hedge effectiveness is evaluated by examining the interest rate conditions which affect calculation of theoretical value of both the hedged items and the which affect calculation of theoretical value of both the hedged items and the hedging instruments. As for any deferred hedge gains based on the Industry hedging instruments. As for any deferred hedge gains based on the Industry Audit Committee’s Report No.16, “Accounting and Auditing Treatments Audit Committee’s Report No.16, “Accounting and Auditing Treatments related to Adoption of Accounting for Financial Instruments in the Insurance related to Adoption of Accounting for Financial Instruments in the Insurance Industry” (issued by the JICPA, on March 31, 2000) prior to application of the Industry” (issued by the JICPA, on March 31, 2000) prior to application of the Report No. 26, Tokio Marine & Nichido has amortized such deferred hedge Report No. 26, Tokio Marine & Nichido has amortized such deferred hedge gains as of the end of March 2003 over the remaining period of hedging tools gains as of the end of March 2003 over the remaining period of hedging tools (1–17 years) by using the straight-line method, and Tokio Marine & Nichido (1–17 years) by using the straight-line method, and Tokio Marine & Nichido Life has amortized deferred hedge gains as of the end of March 2002 over Life has amortized deferred hedge gains as of the end of March 2002 over the remaining period of hedging tools (6–10 years) by using the straight-line the remaining period of hedging tools (6–10 years) by using the straight-line method, respectively, in accordance with the transitional measures in the method, respectively, in accordance with the transitional measures in the Report No. 26. The amount of deferred hedge gains under this transitional Report No. 26. The amount of deferred hedge gains under this transitional treatment as of March 31, 2008 is 47,576 million yen and the amount treatment as of March 31, 2007 is 62,011 million yen and the amount allocated to gains or losses for the fiscal year ended March 31, 2008 is 14,434 allocated to gains or losses for the fiscal year ended March 31, 2007 is 21,355 million yen. million yen. In addition, Tokio Marine & Nichido applies the deferred hedge accounting In addition, Tokio Marine & Nichido applies the deferred hedge accounting for interest rate swap transactions which are used to hedge the interest rate for interest rate swap transactions which are used to hedge the interest rate risk related to bonds issued by Tokio Marine & Nichido. Hedge effectiveness is risk related to bonds issued by Tokio Marine & Nichido. Hedge effectiveness is not evaluated since the critical terms of hedged items and hedging instruments not evaluated since the critical terms of hedged items and hedging instruments are same and thus believed to be highly hedge effective. are same and thus believed to be highly hedge effective. w Foreign exchange w Foreign exchange With regard to some currency swap and forward contract transactions, which With regard to some of Tokio Marine & Nichido’s currency swap and forward are utilized to reduce the future foreign exchange risk associated with assets contract transactions, which are utilized to reduce the future foreign exchange denominated in foreign currencies, Tokio Marine & Nichido applies deferred risk associated with assets denominated in foreign currencies, deferred hedge hedge accounting and/or fair value hedge accounting and/or matching accounting and/or fair value hedge accounting and/or matching treatment are treatment. Nisshin Fire also applies deferred hedge accounting and matching applied. As for deferred hedge accounting and fair value hedge accounting, treatment. As for deferred hedge accounting and fair value hedge accounting, hedge effectiveness is not evaluated, since critical terms of hedged items and hedge effectiveness is not evaluated, since critical terms of hedged items hedging instruments are same and thus believed to be highly hedge effective. and hedging instruments are the same and thus believed to be highly hedge With regard to Nisshin Fire’s forward contract transactions, which utilized to effective. reduce the future foreign exchange risk associated with bonds denominated in foreign currencies, deferred hedge accounting and/or matching treatment are applied. As for deferred hedge accounting, hedge effectiveness is evaluated based on periodical comparison of the market fluctuation of both hedged items and hedging instruments, from the inception of the hedge to the date of the evaluation. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 66 Year ended March 31, 2008 Year ended March 31, 2007 (April 1, 2007–March 31, 2008) (April 1, 2006–March 31, 2007)

(3) Details of risks related derivative transactions (3) Details of risks related derivative transactions Derivative transactions involve market risks and credit risks. (No change) Market risks include risks that the consolidated subsidiaries may incur losses arising from future fluctuation in prices of the relevant financial instruments (interest rates, exchange rates and stock prices). Major consolidated subsidiaries have established risk management systems, under which such consolidated subsidiaries comprehensively manage risks relating to derivative transactions as well as assets and liabilities, and quantify such market risks by way of VaR method, etc. Credit risks include risks that such consolidated subsidiaries may incur losses when their counter-parties in derivative transactions fail to perform obligations set forth in the initial agreements due to insolvency or otherwise, other than any losses arising from deterioration of the credit standing of trade reference stated in credit derivative agreements, etc. Major consolidated subsidiaries manage such credit risks by periodically computing credit risks based on market values. If such counter-parties are financial institutions, etc., with which transactions have been frequently carried out, such consolidated subsidiaries adopt necessary actions to reduce credit risks (e.g. conclusion of netting agreements).

(4) Risk management system (4) Risk management system The Risk Management Department of Tokio Marine, a department in charge The Risk Management Department of Tokio Marine, a department in charge of risk management which is independent of transaction-related departments, of risk management which is independent of transaction-related departments, first reconciles transaction information and requests for managerial decisions first reconciles transaction information and requests for managerial decisions to transaction reports provided by financial institutions and brokers, and then to transaction reports provided by financial institutions and brokers, and then approves such transaction data. Any risk position determined based upon such approves such transaction data. Any risk position determined based upon such approved data are evaluated at fair value as needed, and the Risk Management approved data are evaluated at fair value as needed, and the Risk Management Department determines interest income and risk volume related to derivative Department determines interest income and risk volume related to derivative transactions together with balance-sheet transactions such as securities and transactions together with balance-sheet transactions such as securities and loans, and reports them to a director in charge on a monthly basis. loans, and reports them to a director in charge on a monthly basis. In addition, as for the risk position of derivative transactions, the Risk In addition, as for the risk position of derivative transactions, the Risk Management Department thoroughly reviews whether such position is Management Department thoroughly reviews whether such position is determined in accordance with types of financial instruments, specific risk determined in accordance with the purposes of derivatives, types of financial limits and actions taken against any losses arising from such derivative instruments, notional principal, specific risk limits and actions taken against any transactions classified and expressly stated by investment style in the losses arising from such derivative transactions classified and expressly stated “Investment Guidelines” and then reports the results of such review to a by investment style in the “Investment Guidelines” or whether details of such director in charge on a monthly basis. risk position falls within the authority of transaction-related departments, and The department also confirms by each transactions whether details of such then reports the results of such review to a director in charge on a monthly risk position falls within the authority of transaction related departments. basis. Other consolidated subsidiaries have also established similar risk Other consolidated subsidiaries have also established similar risk management structures as described above. management structures as described above.

(5) Supplemental explanation on contract amount, fair value and unrealized gains/ (5) Supplemental explanation on contract amount, fair value and unrealized gains/ losses losses a. Notional principal (contract amount) a. Notional principal (contract amount) “Contract amount” as shown in the tables set forth in the following section (No change) is a nominal contract amount or notional principal of derivative transactions. The amount itself does not represent market risk or credit risk of derivative transactions. b. Unrealized gains/losses b. Unrealized gains/losses Derivative transactions utilized for the purpose other than investment gains (No change) are used for the purpose of managing the market risk of financial assets from an ALM point of view. It is therefore necessary to evaluate assets and liabilities as a whole, rather than to focus solely on unrealized gains/losses of derivative transactions, to assess the profitability and financial soundness. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 67 Performance

2. Contract amount, fair value and unrealized gains and losses of derivative financial instruments

(1) Foreign currency-related instruments (Yen in millions) As of March 31, 2008 As of March 31, 2007

Type Contract Unrealized Contract Unrealized Over 1 year Fair value Over 1 year Fair value amount, etc. gains/(losses) amount, etc. gains/(losses) Foreign exchange forwards Short USD 389,598 13,039 1,578 1,578 263,286 21,597 (4,258) (4,258) GBP 14,683 — 293 293 9,401 — (32) (32) EUR 118,631 — (1,107) (1,107) 157,362 — (822) (822) HKD 899 — (26) (26) 303 — (2) (2) CAD 7,200 — 880 880 5,327 — (21) (21) AUD 19,793 — 325 325 7,166 — (36) (36) CHF — ——— 90 — (1) (1) NZD — — — — 1,338 — (51) (51) JPY 1,255 — (1) (1) ———— Long USD 14,248 — 227 227 145,122 3,571 1,923 1,923 GBP 25,065 — (332) (332) 14,603 — 126 126 EUR 13,582 — 78 78 45,066 — (568) (568) CAD 2,079 — (77) (77) 503 — 7 7 AUD 2,084 — (17) (17) 2,802 — 72 72 NZD 809 — (26) (26) 240 — 9 9 Currency swaps Pay Foreign/Rec. Yen USD 1,006,691 893,520 (2,436) (2,436) 954,150 871,623 (19,522) (19,522) EUR 47,528 47,528 (3,411) (3,411) 61,515 54,513 (3,480) (3,480) AUD 26,243 25,945 (2,607) (2,607) 44,962 24,962 (11,643) (11,643) Pay Yen/Rec. Foreign Over-the- USD 249,589 188,359 6,416 6,416 264,823 196,031 11,493 11,493 counter EUR 27,011 27,011 3,574 3,574 44,960 40,371 3,338 3,338 transactions AUD 1,013 1,013 46 46 ———— Pay Foreign/Rec. Foreign Pay EUR/Rec. USD. 1,990 1,990 23 23 5,789 1,877 (126) (126) Pay USD/Rec.AUD. 1,377 — 48 48 ———— Pay USD/Rec. NZD 2,105 — (14) (14) ———— Pay USD/Rec. EUR. 647 647 16 16 597 597 26 26 Currency options Short Call 32,258 7,700 12,110 2,842 USD 482 429 1,031 (666) 912 271 364 48 — — 1,587 — EUR — — 0 3 — — 3 — Put 41,866 15,380 32,768 14,060 USD 1,499 (153) 366 336 1,345 705 702 532 Long Call 61,783 57,372 13,096 5,566 USD 5,147 739 1,057 1,054 4,408 4,272 2 — Put 52,327 43,906 17,495 4,680 USD 2,694 (1,315) 144 (384) 4,009 3,800 528 287 — — 1,558 — EUR — — 0 (2) — — 3 — Total 2,162,367 1,323,414 13,275 3,151 2,108,029 1,242,294 (20,971) (23,230) Notes: 1. The fair value of the foreign exchange forwards agreements at end of period is based on the futures’ market price. 2. The fair value of currency swap transactions is calculated by discounting future cash flows to the present value based on the interest rate at year end. 3. The fair value of foreign currency options contracts is based on an option pricing model. 4. For option contracts, option premiums at the inception are shown below the respective contractual amount. 5. Those instruments to which hedge accounting is applied are not included in the table. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 68 (2) Interest rate-related instruments . (Yen in millions) As of March 31, 2008 As of March 31, 2007

Type Contract Unrealized Contract Unrealized Over 1 year Fair value Over 1 year Fair value amount, etc. gains/(losses) amount, etc. gains/(losses) Interest rate futures Market Short 15,000 —. 0 0 71,531 —. 17 17 transactions Long 55,892 —. 46 46 21,713 —. (4) (4) Interest rate forward Short 57,125 — 13 13 105,147 — (6) (6) Long 15,424 — (2) (2) 59,990 — 0 0 Interest rate options Short 45,387 39,387 31,062 30,862 Cap 374 465 288 210 839 770 499 496 87,687 84,687 85,277 85,277 Swaption 1,356 (570) 2,018 (1,284) Over-the- 786 786 733 733 counter Long transactions 33,596 28,596 29,500 23,500 Cap 75 (355) 165 (246) 431 402 412 381 41,974 39,974 36,974 36,974 Swaption 89 (39) 307 307 129 129 — — Interest rate swap Rec. fix/Pay float 7,711,281 5,723,575 130,520 130,520 6,423,740 5,307,073 37,907 37,907 Rec. float/Pay fix 7,021,398 4,883,349 (88,002) (88,002) 5,747,177 4,702,920 (20,735) (20,735) Rec. float/Pay float 767,364 461,064 10,694 10,694 923,516 530,594 1,408 1,408 Rec. fix/Pay fix 155,218 138,218 (2,741) (2,741) 171,765 157,046 (4,411) (4,411) Total 16,007,352 11,398,854 52,424 50,028 13,707,398 10,874,250 16,955 13,162 Notes: 1. The fair value of the interest rate future is based on the closing price at major stock exchanges. 2. The fair value of the interest forward and the interest rate swap transactions is calculated by discounting future cash flows to the present value based on the interest rate at year end. 3. The fair value of interest rate options transactions is based on an option pricing model. 4. For option contracts, option premiums at the inception are shown below the respective contractual amount. 5. Interest rate swaps to which hedge accounting is applied are as follows. The amounts of deferred hedge gains and losses are presented before tax basis.

(Yen in millions) As of March 31, 2008 As of March 31, 2007

Classification Contract Deferred hedge Contract Deferred hedge Over 1 year Fair value Over 1 year Fair value amount, etc. gains/(losses) amount, etc. gains/(losses) Deferred hedge accounting in 420,400 420,400 853 2,894 167,100 167,100 (13,019) (11,383) accordance with Report No.26*

(Unamortized portion of deferred hedge gains and losses in accordance 1,086 644 with Report No.16** are shown below “Deferred hedge gains / (losses)”

Other deferred hedge accounting 107,287 102,287 693 649 104,877 104,877 698 570 Total 527,687 522,687 1,547 4,631 271,977 271,977 (12,321) (10,167) WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 69 Performance

6. Deferred hedge gains and losses relating to the interest rate swap transactions to which hedge accounting is not applied are as follows. The amount of deferred gains and losses are presented before tax basis.

(Yen in millions) As of March 31, 2008 As of March 31, 2007 Classification Deferred hedge gains (losses) Deferred hedge gains (losses) Unamortized potion of deferred hedge gains and losses in accordance with Report in No. 16** 46,490 61,367 relating to interest rate swaps which are not covered by Report No. 26* Other deferred hedge accounting (32,296) (38,563) Total 14,194 22,803 * Report No. 26: Accounting and Auditing Treatments related to Adoption of Accounting for Financial Instruments in the Insurance industry (Japanese institute of Certified Public Accountants, September 3, 2002) ** Report No. 16: Tentative Accounting and Auditing Treatments related to Adoption of Accounting for Financial Instruments in the Insurance industry (Japanese institute of Certified Public Accountants, March 31, 2000)

(3) Equity-related instruments

As of March 31, 2008 As of March 31, 2007 Type Contract Unrealized Contract Unrealized Over 1 year Fair value Over 1 year Fair value amount, etc. gains/(losses) amount, etc. gains/(losses) Equity index futures Short 22,030 — (41) (41) 29,728 — (498) (498) Long 26,008 — 567 567 21,037 — 460 460 Equity index options Short 5,800 — 17,200 — Call 0 70 360 (7) Market 70 — 352 — transactions — — 11,740 — Put — — 40 158 — — 199 — Long — — 12,100 — Call — — 585 45 — — 540 — 11,900 — 14,465 — Put 175 (644) 320 (99) 819 — 420 — Equity index options Short — — 3,118 — Call — — (124) 196 — — 72 — Long — — 3,118 — Call — — (15) (80) — — 65 — 30,886 26,603 33,911 29,924 Put 9,263 2,302 4,899 (2,661) 6,961 6,187 7,560 6,961 Over-the- Equity options counter Short transactions — — 1,002 — Put — — 21 11 — — 32 — Long — — 1,002 — Put — — 21 (1) — — 22 — Equity swap transactions Rec. floating rate/Pay. 380 — 4 4 ———— floating equity price Rec. floating equity 380 — (4) (4) ———— price/Pay. floating rate Total 97,387 26,603 9,965 2,254 148,423 29,924 6,071 (2,475) Notes: 1. The fair values of equity index futures and equity index options (market transaction) are based on the quoted closing price of the primary stock exchanges. 2. The fair values of equity index options of over-the-counter transactions, equity options and equity swap transactions are based on quotation from futures market, brokers and financial institutions (counterparties), or on an option pricing model. 3. For option contracts, the option premiums at the inception are shown below the respective contractual amount. 4. The synthetic options are classified into such as short or long positions by the receiving or paying option premiums at the time transactions started. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 70 (4) Bond-related instruments

(Yen in millions) As of March 31, 2008 As of March 31, 2007 Type Contract Unrealized Contract Unrealized Over 1 year Fair value Over 1 year Fair value amount, etc. gains/(losses) amount, etc. gains/(losses) Bond futures Market Short 21,966 — (182) (182) 74,097 — 186 186 transactions Long 49,281 — 235 235 89,008 — (392) (392) Bond future options Short 31,253 — 5,824 — Call 75 (29) 1 9 46 — 10 — Over-the- 10,499 — — — counter Put 34 9 — — 44 — — — transactions Long 10,499 — — — Call 20 (16) —— 37 — — — 10,460 — 2,732 — Put 11 (27) 24 12 39 — 12 — Total 133,959 — 194 (11) 171,663 — (179) (184) Notes: 1. The fair values of bond futures and bond future options are based on the closing price at the primary stock exchanges. 2. The fair values of bond future options of over-the-counter are based on quotation from financial institutions (counterparties) or prices calculated by the internal valuation model. 3. For option contracts, the option premiums at the inception are shown below the respective contractual amount.

(5) Weather-related instruments

(Yen in millions) As of March 31, 2008 As of March 31, 2007 Type Contract Unrealized Contract Unrealized Over 1 year Fair value Over 1 year Fair value amount, etc. gains/ (losses) amount, etc. gains/ (losses) Over-the- Weather derivatives counter — — 1,909 — Short —— 954 (883) transactions — — 70 — Total — — — — 1,909 — 954 (883) Notes: 1. The fair value of the weather-related instruments is calculated based on weather conditions, contract terms and other factors relating to derivative transactions. 2. The option premiums at the inception are shown below the respective contractual amount.

(6) Credit-related instruments

(Yen in millions) As of March 31, 2008 As of March 31, 2007 Type Contract Unrealized Contract Unrealized Over 1 year Fair value Over 1 year Fair value amount, etc. gains/ (losses) amount, etc. gains/ (losses) Over-the- Credit derivatives counter Sell protection 892,488 892,212 (10,944) (10,944) 1,074,013 894,449 790 790 transactions Buy protection 46,855 43,579 714 714 83,314 54,001 (659) (659) Total 939,343 935,792 (10,229) (10,229) 1,157,328 948,450 131 131 Note: The fair value of the credit derivatives is calculated using the internal valuation model

(7) Commodity-related instruments

(Yen in millions) As of March 31, 2008 As of March 31, 2007 Type Contract Unrealized Contract Unrealized Over 1 year Fair value Over 1 year Fair value amount, etc. gains/ (losses) amount, etc. gains/ (losses) Commodity swaps Rec. fixed process/Pay 10,828 10,492 (24,402) (24,402) 29,905 29,905 (32,859) (32,859) Over-the- Commodity indices counter Rec. commodity indices/ 9,802 9,555 20,329 20,329 27,589 27,589 32,270 32,270 transactions Pay fixed price Rec. Commodity indices/ 19,351 19,351 (437) (437) 15,033 15,033 (46) (46) Pay variable indices Total 39,983 39,400 (4,510) (4,510) 72,528 72,528 (635) (635) Note: The fair value of commodity swaps is calculated using the internal valuation model. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 71 Performance

(8) Others

(Yen in millions) As of March 31, 2008 As of March 31, 2007 Type Contract Unrealized Contract Unrealized Over 1 year Fair value Over 1 year Fair value amount, etc. gains/ (losses) amount, etc. gains/ (losses) Over-the- Index basket options counter 167,355 167,355 — — Long 11,962 9,568 —— transactions 2,394 2,394 — — Total 167,355 167,355 11,962 9,568 — — — — Notes: 1. The fair value of the index basket option is calculated based on the price quoted by financial institutions (counterparties). 2. The option premiums at the inception are shown below the respective contractual amount.

Retirement Benefits

1. Outline of the retirement and severance benefit plans The Company and other seven consolidated subsidiaries have an unfunded lump-sum payment retirement plan covering substantially all employees. Tokio Marine & Nichido has a corporate pension fund system and an approved retirement annuity plan. The benefits of the corporate pension fund system and lump-sum payment retirement plan are based on the points which each employee acquired through service. Tokio Marine & Nichido transferred a portion of its corporate pension fund to a defined-contribution pension plan as of July 2, 2007. Additionally, some domestic consolidated subsidiaries have the employee retirement trust.

2. Breakdown of retirement benefits liabilities

(Yen in millions) As of March 31, 2008 As of March 31, 2007 a. Retirement benefit liabilities (384,401) (439,089) b. Pension assets 181,286 221,666 c. Employee retirement trust 13,350 18,111 d. Unaccrued retirement benefit liabilities (a+b+c) (189,764) (199,310) e. Unrecognized actuarial difference 82,842 83,821 f. Unrecognized prior service costs (25,015) (35,083) g. Net amount in the consolidated balance sheets (d+e+f) (131,937) (150,572) h. Prepaid pension expenses 6,522 6,063 i. Reserve for retirement benefits (g–h) (138,459) (156,635)

As of March 31, 2008 As of March 31, 2007

Notes Note 1. The Company and its subsidiaries excluding Tokio Marine & Nichido, Nisshin 10 companies excluding Tokio Marine & Nichido, Nisshin Fire, Tokio Marine & Fire, Tokio Marine & Nichido Life, Tokio Marine & Nichido Facilities and Tokio Nichido Life and Tokio Marine & Nichido Facilities adopt the simple method Marine & Nichido Career Service adopt the simple method in calculation of in calculation of retirement benefit liabilities. Other than described above, retirement benefit liabilities. “Reserve for retirement benefits” includes 369 million yen accrued for 2. The changes that resulted from the transfer of a portion of Tokio Marine & executives retirement benefit of some domestic consolidated subsidiaries. Nichido’s corporate pension fund to its defined contribution pension plan are detailed below. (Yen in millions) Decrease in retirement benefit liabilities 60,163 Decrease in pension assets (32,984) Unrecognized actuarial difference (8,185) Unrecognized prior service costs 7,157 Decrease in reserve for retirement benefit 26,151 WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 72 3. Breakdown of retirement expenses

(Yen in millions) Year ended March 31, 2008 Year ended March 31, 2007 (April 1, 2007–March 31, 2008) (April 1, 2006–March 31, 2007) a. Service cost 16,102 17,559 b. Interest cost 7,701 8,212 c. Expected investment income (5,847) (5,937) d. Actuarial differences accounted for as expense 7,909 9,110 e. Amortization of prior service cost accounted for as (2,910) (3,424) expense f. Retirement benefit expenses (a+b+c+d+e) 22,955 25,519 g. Amount transferred to the defined contribution 1,011 — pension plan h. Gains and losses resulted from the transfer to the (26,151) — defined contribution pension plan i. Gains and losses accounted for by a method for a — (988) partial abolishment of retirement benefit plan j. Total (f+g+h+I) (2,184) 24,530

Year ended March 31, 2008 Year ended March 31, 2007 (April 1, 2007–March 31, 2008) (April 1, 2006–March 31, 2007)

Notes Notes 1. Employee contributions to the corporate pension fund are deducted from 1. Employee contributions to the corporate pension fund are deducted from service cost. service cost. 2. Retirement expenses for companies using simple method are recorded as “a. 2. Retirement expenses for companies using simple method are recorded as “a. service cost”. service cost”. 3. The item “h. Gains and losses resulted from the transfer to the defind- 3. The item “i. Gains and losses accounted for by a method for a partial contribution pension plan” is the gain recognized in connection with abolishment of retirement benefit plan” is the gain recognized in connection the transfer some part of corporate pension fund system to the defined with employee’s retirement who applied to early retirement plan. The gain is contribution pension plan, and included in “Other extraordinary gains.” accounted for by a method for a partial abolishment of retirement benefit plan and included in “Other extraordinary gains”.

4. Accounting for retirement benefit liabilities

Year ended March 31, 2008 Year ended March 31, 2007 (April 1, 2007–March 31, 2008) (April 1, 2006–March 31, 2007)

a. Distribution The lump-sum retirement benefit system and the corporate (No change) method for pension fund system mainly employ the point standard. estimated retirement benefits

b. Discount rate 1.3%–2.0% 1.3%–2.0%

c. Expected rate 1.3%–3.1% 1.3%–2.9% of return on investments

14 (Expenses are accounted for using the straight-line method over 15 (Expenses are accounted for using the straight-line method over d. Years to amortize a certain number of years and within the average remaining work a certain number of years and within the average remaining work prior service costs period of employees at the time of occurrence) period of employees at the time of occurrence)

1 to 14 (Expenses are accounted for in the following fiscal year 5 to 15 (Expenses are accounted for in the following fiscal year e. Years to amortize using the straight-line method over a certain number of years and using the straight-line method over a certain number of years and actuarial within the average remaining work period of employees at the within the average remaining work period of employees at the differences time of occurrence) time of occurrence) WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 73 Performance

Stock Options

Year ended March 31, 2008 (April 1, 2007–March 31, 2008) 1. The account title and the amount related to stock options;

(Yen in millions) Loss adjustment expenses 67 Operating and general administrative expenses 318 Total 385

2. Details and figures relating to stock options allotted; (1) Details relating to stock options allotted

Stock options (July 2007) Stock options (July 2006) Stock options (July 2005) (Stock option scheme as stock-linked (Stock option scheme as stock-linked (Stock option scheme as stock-linked compensation plan) compensation plan) compensation plan)

Position and number Directors of the Company: 12 Directors of the Company: 7 Directors of the Company: 11 of grantees Corporate auditors of the Company: 5 Corporate auditors of the Company: 2 Corporate auditors of the Company: 5 Directors of the Company’s consolidated Directors of the Company’s consolidated Directors of the Company’s consolidated subsidiaries (excluding directors of the subsidiaries (excluding directors of the subsidiaries (excluding directors of the Company): 19 Company): 17 Company): 15 Corporate auditors of the Company’s Corporate auditors of the Company’s Corporate auditors of the Company’s consolidated subsidiaries: 8 consolidated subsidiaries: 3 consolidated subsidiaries: 5 Directors* of the Company’s consolidated Directors* of the Company’s consolidated Directors* of the Company’s consolidated subsidiaries: 21 subsidiaries: 27 subsidiaries 27 (*) Non-members of the board (*) Non-members of the board (*) Non-members of the board

Class and number Common stock: 86,700 shares Common stock: 97,000 shares Common stock: 155,000 shares of shares underlying the stock options (Note 1)

Date of allotment July 23, 2007 July 18, 2006 July 14, 2005

Conditions for Terms of the stock options settle on the Terms of the stock options settle on the Terms of the stock options settle on the settlement date of allotment. Additionally, stock date of allotment. Additionally, stock date of allotment. Additionally, stock options held by any of the directors or options held by any of the directors or options held by any of the directors or corporate auditors that he/she received in corporate auditors that he/she received in corporate auditors that he/she received in his/her capacity as a director (including a his/her capacity as a director (including a his/her capacity as a director (including a non-member of the board) or a corporate non-member of the board) or a corporate non-member of the board) or a corporate auditor of the relevant entity may be auditor of the relevant entity may be auditor of the relevant entity may be exercised after he/she has retired from any exercised after he/she has retired from any exercised after he/she has retired from any position as a director (including a non- position as a director (including a non- position as a director (including a non- member of the board) or corporate auditor member of the board) or corporate auditor member of the board) or corporate auditor of such entity before June 30, 2008. The of such entity before June 30, 2007. The of such entity before June 30, 2006. The number of the exercisable stock options is number of the exercisable stock options is number of the exercisable stock options is calculated by the following formula. calculated by the following formula. calculated by the following formula. Number of stock options allotted × Number Number of stock options allotted × Number Number of stock options allotted × Number of months served by directors (including of months served by directors (including of months served by directors (including non-members of the board) or corporate non-members of the board) or corporate non-members of the board) or corporate auditors from July 2007 inclusive of the auditors from July 2006 inclusive of the auditors from July 2005 inclusive of the month of the retirement / 12. month of the retirement / 12. month of the retirement / 12. Any remaining amount of stock options Any remaining amount of stock options Any remaining amount of stock options allotted is deemed non-exercisable on the allotted is deemed non-exercisable on the allotted is deemed non-exercisable on the date of the retirement and is forfeited. date of the retirement and is forfeited. date of the retirement and is forfeited.

Term of grantees’ From July 24, 2007 to June 30, 2008 From July 19, 2006 to June 30, 2007 From July 15, 2005 to June 30, 2006 service for which stock options are allotted WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 74 Stock options (July 2007) Stock options (July 2006) Stock options (July 2005) (Stock option scheme as stock-linked (Stock option scheme as stock-linked (Stock option scheme as stock-linked compensation plan) compensation plan) compensation plan)

Term in which stock From July 24, 2007 to July 23, 2037. Stock From July 19, 2006 to July 18, 2036. Stock From July 15, 2005 to June 30, 2035. Stock options may be options held by any of the directors or options held by any of the directors or options held by any of the directors or exercised corporate auditors that he/she received in corporate auditors that he/she received in corporate auditors that he/she received in his/her capacity as a director (including a his/her capacity as a director (including a his/her capacity as a director (including a non-member of the board) or a corporate non-member of the board) or a corporate non-member of the board) or a corporate auditor of the relevant entity may be auditor of the relevant entity may be auditor of the relevant entity may be exercised within ten days after he/she has exercised within ten days after he/she has exercised within ten days after he/she has retired from any position as a director retired from any position as a director retired from any position as a director (including a non-member of the board) or (including a non-member of the board) or (including a non-member of the board) or corporate auditor of such entity (excluding corporate auditor of such entity (excluding corporate auditor of such entity (excluding the date of the retirement). the date of the retirement). the date of the retirement

Note: The number of stock options corresponds to the number of underlying common stock

(2) Figures relating to the stock options allotted; (a) Number of the stock options allotted

Non-exercisable stock options (shares)

Outstanding at the beginning of the — 13,500 — fiscal year

Allotted 86,700 — —

Forfeited — — —

The number of stock options 67,300 13,500 — whose terms settled

Outstanding at the end of the fiscal 19,400 — — year

Exercisable stock options (shares)

Outstanding at the beginning of the — 83,500 121,500 fiscal year

The number of stock options 67,300 13,500 — whose terms settled

Exercised 1,000 24,000 30,000

Forfeited — — —

Outstanding at the end of the fiscal 66,300 73,000 91,500 year

Note: The Company conducted a stock split of its shares of common stock effective as of September 30, 2006, whereby one share was split into 500 shares. The above numbers are presented on an after stock split basis. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 75 Performance

(b) Prices relating to the stock options allotted

Exercise price 100 500 500

Average stock price 3,670 4,936 5,022 at exercise

Fair value on the 491,700 2,013,506 — date of allotment

3. The method for calculation of the fair value of stock options The method for estimating the fair value of stock options allotted during the fiscal year ended March 31, 2008 is as follows; (a) Method of valuation Black-Scholes Model (b) Major assumption and method of estimation Stock options (July, 2007) (Stock option scheme as stock-linked compensation plan) Estimated volatility (Note 1) 34.00% Estimated lives (Note 2) 3 years Expected dividend per year (Note 3) ¥28 Risk free interest rate (Note 4) 1.164% Notes: 1. Computed based on the fluctuation of the stock price during the period beginning on April 1, 2002 and ending on July 23, 2008. 2. Computed based on the average period of service of directors and corporate auditors. 3. Computed based on the average amount of dividends paid. 4. Based on yields of Japanese government bonds for a term corresponding to the estimated lives of directors and corporate auditors.

4. Estimate of the number of stock options with terms that settled during the fiscal year ended March 31, 2008. The number only reflects the actual number of forfeited stock options because it is deemed impossible to make a reasonable assumption on which an estimate could be based.

Year ended March 31, 2007 (April 1, 2006–March 31, 2007) 1. The account title and the amount related to stock options;

(Yen in millions) Loss adjustment expenses 31 Operating and general administrative expenses 304 Total 336

2. Details and figures relating to stock options allotted; (1) Details relating to stock options allotted

Stock options (July 2006) Stock options (July 2005) (Stock option scheme as stock-linked compensation plan) (Stock option scheme as stock-linked compensation plan)

Position and number Directors of the Company: 7 Directors of the Company: 11 of grantees Corporate auditors of the Company: 2 Corporate auditors of the Company: 5 Directors of the Company’s consolidated subsidiaries (excluding Directors of the Company’s consolidated subsidiaries (excluding directors of the Company): 17 directors of the Company): 15 Corporate auditors of the Company’s consolidated subsidiaries: 3 Corporate auditors of the Company’s consolidated subsidiaries: 5 Directors* of the Company’s consolidated subsidiaries: 27 Directors* of the Company’s consolidated subsidiaries 27 (*) Non-members of the board (*) Non-members of the board

Class and number Common stock: 97,000 shares Common stock: 155,000 shares of shares underlying the stock options (Note) WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 76 Stock options (July 2006) Stock options (July 2005) (Stock option scheme as stock-linked compensation plan) (Stock option scheme as stock-linked compensation plan)

Date of allotment July 18, 2006 July 14, 2005

Conditions for Terms of the stock options settle on the date of allotment. Terms of the stock options settle on the date of allotment. settlement Additionally, stock options held by any of the directors or corporate Additionally, stock options held by any of the directors or corporate auditors that he/she received in his/her capacity as a director auditors that he/she received in his/her capacity as a director (including a non-member of the board) or a corporate auditor of (including a non-member of the board) or a corporate auditor of the relevant entity may be exercised after he/she has retired from the relevant entity may be exercised after he/she has retired from any position as a director (including a non-member of the board) or any position as a director (including a non-member of the board) or corporate auditor of such entity before June 30, 2007. The number corporate auditor of such entity before June 30, 2006. The number of the exercisable stock options is calculated by the following of the exercisable stock options is calculated by the following formula. formula. Number of stock options allotted × Number of months served Number of stock options allotted × Number of months served by directors (including non-members of the board) or corporate by directors (including non-members of the board) or corporate auditors from July 2006 inclusive of the month of the retirement auditors from July 2005 inclusive of the month of the retirement / 12. / 12. Any remaining amount of stock options allotted is deemed non- Any remaining amount of stock options allotted is deemed non- exercisable on the date of the retirement and is forfeited. exercisable on the date of the retirement and is forfeited.

Term of grantees’ From July 19, 2006 to June 30, 2007 From July 15, 2005 to June 30, 2006 service for which stock options are allotted

Term in which stock From July 19, 2006 to July 18, 2036. Stock options held by any of From July 15, 2005 to June 30, 2035. Stock options held by any of options may be the directors or corporate auditors that he/she received in his/her the directors or corporate auditors that he/she received in his/her exercised capacity as a director (including a non-member of the board) or a capacity as a director (including a non-member of the board) or a corporate auditor of the relevant entity may be exercised within corporate auditor of the relevant entity may be exercised within ten days after he/she has retired from any position as a director ten days after he/she has retired from any position as a director (including a non-member of the board) or corporate auditor of (including a non-member of the board) or corporate auditor of such entity (excluding the date of the retirement). such entity (excluding the date of the retirement).

Note: The number of stock options corresponds to the number of underlying common stock

(2) Figures relating to the stock options allotted; (a) Number of the stock options allotted

Stock options (July 2006) Stock options (July 2005) (Stock option scheme as stock-linked compensation plan) (Stock option scheme as stock-lined compensation plan) Non-exercisable stock options(shares) Outstanding at the beginning of the fiscal year — 27,000 Allotted 97,000 — Forfeited — — The number of stock options whose terms settled 83,500 27,000 Outstanding at the end of the fiscal year 13,500 — Exercisable stock options (shares) Outstanding at the beginning of the fiscal year — 127,000 The number of stock options whose terms settled 83,500 27,000 Exercised — 32,500 Forfeited — — Outstanding at the end of the fiscal year 83,500 121,500

(b) Prices relating to the stock options allotted

Stock options (July 2006) Stock options (July 2005) (Stock option scheme as stock-linked compensation plan) (Stock option scheme as stock-linked compensation plan) (Yen) (Yen) Exercise price 500 500 Average stock price at exercise — 2,071,230 Fair value on the date of allotment 2,013,506 — WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 77 Performance

3. The method for calculation of the fair value of stock options The method for estimating the fair value of stock options allotted during the fiscal year ended March 31, 2007 is as follows; (a) Method of valuation Black-Scholes Model (b) Major assumption and method of estimation Stock options (July, 2006) (Stock option scheme as stock- linked compensation plan) Estimated volatility (Note 1) 35.77% Estimated lives (Note 2) 4 years Expected dividend per year (Note 3) ¥11,750 Risk free interest rate (Note 4) 1.13% Notes: 1. Computed based on the fluctuation of the stock price during the period beginning on April 1, 2002 and ending on July 18, 2006. 2. Computed based on the average period of service of directors and corporate auditors. 3. Computed based on the average amount of dividends paid. 4. Based on yields of Japanese government bonds for a term corresponding to the estimated lives of directors and corporate auditors.

4. Estimate of the number of stock options with terms that settled during the fiscal year ended March 31, 2007. The number only reflects the actual number of forfeited stock options because it is deemed impossible to make a reasonable assumption on which an estimate could be based.

Deferred Tax Accounting

As of March 31, 2008 As of March 31, 2007

1 Significant portions of deferred tax assets and deferred tax liabilities 1 Significant portions of deferred tax assets and deferred tax liabilities (Yen in millions) (Yen in millions) Deferred tax assets Deferred tax assets Underwriting reserves 429,562 Underwriting reserves 413,808 Outstanding claims 55,532 Reserve for retirement benefits 61,161 Reserve for retirement benefits 54,102 Outstanding claims 52,915 Provision for reserve for price fluctuation 44,042 Provision for reserve for price fluctuation 39,544 Loss on revaluation of securities 30,151 Deferred hedge losses 27,374 Deferred hedge losses 18,787 Loss on revaluation of securities 25,251 Net operating loss carry forward 15,485 Net operating loss carry forward 11,657 Others 80,815 Others 62,179 Subtotal 728,481 Subtotal 693,893 Valuation allowance (27,251) Valuation allowance (20,456) Total deferred tax assets 701,229 Total deferred tax assets 673,436

Deferred tax liabilities Deferred tax liabilities Difference from revaluation of other securities (801,347) Difference from revaluation of other securities (1,252,448) Unrealized gains on consolidated subsidiaries (107,253) Unrealized gains on consolidated subsidiaries (115,192) Deferred hedge gains (25,587) Deferred hedge gains (31,675) Others (33,799) Others (20,494) Total deferred tax liabilities (967,987) Total deferred tax liabilities (1,419,811) Net deferred tax assets (liabilities) (266,757) Net deferred tax assets (liabilities) (746,374)

2 Reconciliation between the effective tax rate of the Company and the Japanese 2 Reconciliation between the effective tax rate of the Company and the Japanese statutory income tax rate statutory income tax rate (Percentages) (Percentages) Japanese statutory tax rate 40.7 Japanese statutory tax rate 40.7 (Adjustment) (Adjustment) Permanent differences such as dividends received (8.8) Permanent differences such as dividends received (9.4) Tax rate applied to subsidiaries (3.6) Tax rate applied to subsidiaries (4.0) Permanent differences such as entertainment Permanent differences such as entertainment 0.9 1.8 expenses expenses Valuation allowance 3.9 Valuation allowance 5.2 Income tax equivalents related to the reserve Others (0.2) for policyholders dividends incurred by overseas 3.8 subsidiaries Effective tax rate 34.1 Others 0.0 Effective tax rate 36.8 WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 78 Business Combinations and Other Matters

Year ended March 31, 2008 (April 1, 2007–March 31, 2008)

As of March 10, 2008, the Company acquired Kiln Ltd, a global insurance player with its primary base in the U.K. insurance market of Lloyd’s, and made it a subsidiary through Tokio Marine & Nichido, a wholly owned subsidiary of the Company. In connection with the accounting for the acquisition, the Company has applied the purchase method as described below.

(i) The outline of the business combination to which the purchase method was applied a. Acquired company Kiln Ltd b. Business A holding company for subsidiaries operating insurance and insurance-related businesses c. Reasons for the business combination The Company intends to expand the scale of its operations and earnings of its overseas insurance business and to establish a position as a major player in Lloyd’s of the U.K., one of the world’s leading insurance markets. d. Date of the business combination March 10, 2008 e. Ratio of voting rights acquired through the business combination 100%

(ii) Period for which the operating results of the acquired company are included in the consolidated financial statements of the Company For accounting purposes the business combination date is deemed to be the last day of the fiscal year ended March 31, 2008. Consequently, the results of operation of the acquired company are not reflected in the consolidated financial statements of the Company for the fiscal year ended March 31, 2008.

(iii) Acquisition cost 94,122 million yen

(iv) Amount, basis, amortization method and amortization period of goodwill a. Amount of goodwill 29,596 million yen b. Basis The acquisition cost of the acquired company, which was calculated by taking into account the projected future revenues as of the valuation date, exceeded the market value of the net assets of the acquired company as of the date of the business combination. This difference was recognized as goodwill. c. Amortization method and period To be amortized over 10 years using the straight-line method

(v) Assets and liabilities assumed on the date of the business combination and their main components

Amount Amount Item Item (million yen) (million yen) Total assets 207,439 Total liabilities 142,914 (Securities) 79,167 (Underwriting funds) 82,746 WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 79 Performance

(vi) Approximate impact on the consolidated statements of income, assuming that the business combination took place at the beginning of the fiscal year ended March 31, 2008. The ordinary income, ordinary profit and net income would have increased by 81,167 million yen, 9,566 million yen and 5,050 million yen, respectively. These amounts represent the difference between the actual figures and the estimates of the figures for ordinary income, ordinary profit and net income calculated based on the assumption that the business combination was completed at the beginning of the fiscal year ended March 31, 2008. The amortized amount of goodwill was calculated assuming that the goodwill recognized at the time of the business combination had arisen at the beginning of the fiscal year ended March 31, 2008. The above amounts are un-audited.

Year ended March 31, 2007 (April 1, 2006–March 31, 2007)

(1) The Company completed a stock-for-stock exchange with Nisshin Fire and made it a wholly owned subsidiary as of September 30, 2006. The Company has applied the purchase method as described below:

(i) The outline of the business combination to which the purchase method was applied a. Acquired company Nisshin Fire & Marine Insurance Co., Ltd. b. Business Property and casualty insurance c. Reasons for the business combination The Company conducted a stock-for-stock exchange with Nisshin Fire, making it a wholly owned subsidiary, in order to further strengthen the property and casualty insurance business of the Millea Group through development of an alliance between Tokio Marine & Nichido and Nisshin Fire. d. Date of the business combination September 30, 2006 e. Legal form Stock-for-stock exchange f. Ratio of voting rights acquired through the business combination 72.13%

(ii) Period for which the operating results of the acquired company are included in the consolidated financial statements of the Company The results of operations of the acquired company after the date of the business combination are reflected in the consolidated financial statements of the Company for the fiscal year ended March 31, 2007. The results before the date of the business combination are reflected by applying the equity method.

(iii) Acquisition cost The shares of Nisshin Fire were purchased through a stock-for-stock exchange at a cost of 82,190 million yen. In connection with the stock exchange, 19,114,034 shares of the common stock of the Company, held as treasury stock, were delivered and no new shares were issued. The Company exchanged 0.126 shares of its common stock for 1 share of common stock of Nisshin Fire. The share exchange ratio was calculated based on methodologies that include the historical trading value method, the DCF (discounted cash flow) method and the adjusted net asset value method.

(iv) Amount, basis, amortization method and amortization period of negative goodwill a. Amount of negative goodwill 18,185 million yen b. Basis The acquisition cost of the acquired company, which was calculated based on the share prices for the five days immediately proceeding the date of the announcement of the share exchange agreement, was less than the market value of the net assets of the acquired company as of the date of the business combination. This difference was recognized as negative goodwill. c. Method and period of the amortization Amortized over 20 years using the straight-line method WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 80 (v) Assets and liabilities assumed on the date of the business combination and their main components

Amount Amount Item Item (million yen) (million yen) Total assets 516,570 Total liabilities 396,820 Securities included in total assets 317,938 Underwriting reserves included in total liabilities 378,723

(vi) Approximate impact on the consolidated statements of income, assuming that the business combination took place at the beginning of the fiscal year ended March 31, 2007 The ordinary income would have increased by 84,102 million yen, while ordinary profit and net income would have decreased by 2,876 million yen and 1,387 million yen, respectively. These amounts represent the difference between the actual figures and the estimates of the figures for ordinary income, ordinary profit and net income calculated based on the assumption that the business combination was completed at the beginning of the fiscal year ended March 31, 2007. The amortized amount of negative goodwill was calculated assuming that the negative goodwill recognized at the time of the business combination had arisen at the beginning of the fiscal year ended March 31, 2007. The above amounts are un-audited.

(2) In May 2006 and between January 2007 and March 2007, Tokio Marine & Nichido, a wholly-owned subsidiary of the Company, made investments in a group of companies operating property and casualty insurance and life insurance businesses in both Singapore and Malaysia. Tokio Marine & Nichido acquired the majority share of the holding company of this group on January 5, 2007. The Company has applied the purchase method as described below:

(i) The outline of the business combination to which the purchase method was applied a. Name, business and voting share acquired

Acquired Companies Business Acquired voting share Asia General Holdings Limited Holding company 92.13% The Asia Insurance Company Limited (Note1) Property and casualty insurance 100.00% The Asia Life Assurance Society Limited (Note2) Life insurance 85.15% Asia Insurance (Malaysia) Berhad Property and casualty insurance 100.00% Asia Life (M) Berhad (Note3) Life insurance 100.00% Notes: 1. The company was renamed TM Asia Insurance Singapore Ltd. in March 2007. 2. The company name was renamed TM Asia Life Singapore Ltd. in March 2007. 3. The company name was renamed Asia General Asset Bhd. in September 2007. 4. The company name was renamed TM Asia Life Malaysia Bhd. in March 2007. b. Reasons for the business combination Tokio Marine & Nichido, a wholly-owned subsidiary of the Company, made the acquisitions in order to expand the insurance sales base in both Singapore and Malaysia, where the insurance markets are expected to grow significantly. c. Date of the business combination January 5, 2007

(ii) Period for which the operating results of the acquired company are included in the consolidated financial statements The deemed date of the business combination falls on the last day of the fiscal year ended March 31, 2007. Accordingly, the consolidated statements of income does not reflect the results of the acquired companies. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 81 Performance

(iii) Acquisition cost

(Yen in millions) Acquired companies Acquisition cost Asia General Holdings Limited 42,030 The Asia Life Assurance Society Limited 1,369 Asia Insurance (Malaysia) Berhad 1,103

(iv) Amount, basis, amortization method and amortization period of goodwill or negative goodwill a. Amount, amortization method and amortization period of goodwill or negative goodwill

Amount of goodwill or negative goodwill Acquired companies Amortization method and period (million yen) Amortized over 20 years using the The Asia Insurance Company Limited (8,860) straight-line method Amortized over 20 years using the The Asia Life Assurance Society Limited (9,486) straight-line method Amortized over 10 years using the Asia Insurance (Malaysia) Berhad 1,141 straight-line method Amortized over 15 years using the Asia Life (M) Berhad 7,646 straight-line method b. Basis The Asia Insurance Company Limited sold its assets before the share acquisition and the realized value was larger than the asset value at the time of the acquisition appraisal, meaning the market value of net assets at the time of the business combination was larger than the amount paid at acquisition, and thus the excess amount was recognized as negative goodwill. The Asia Life Assurance Society Limited sold its assets before the share acquisition and the realized value was larger than the asset value at the time of the acquisition appraisal. This, in addition to a different way of valuing the underwriting reserve, meant the market value of net assets at the time of the business combination was larger than the amount paid at acquisition, and thus the excess amount was recognized as negative goodwill. For Asia Insurance (Malaysia) Berhad and Asia Life (M) Berhad, the amount paid at acquisition which reflected the future income expected at the time of the acquisition appraisal, exceeded the market value of net assets at the time of the business combination, and the excessive difference was recognized as goodwill.

(v) Amount of assets and liabilities assumed on the date of the business combination and their main components

(Yen in millions) Securities included in Underwriting funds Acquired companies Total assets Total liabilities total assets included in total liabilities Asia General Holdings Limited 48,537 40,665 2,887 —. The Asia Insurance Company Limited 43,880 16,889 13,159 7,007 The Asia Life Assurance Society Limited 170,460 122,195 134,940 125,900 Asia Insurance (Malaysia) Berhad 7,473 2,380 2,938 2,305 Asia Life (M) Berhad 112,337 68,688 105,142 99,366 (vi) Approximate impact on the consolidated statements of income, assuming that the business combination took place at the beginning of the fiscal year ended March 31, 2007 The ordinary income and net income would have increased by 65,833 million yen and 4,114 million yen, respectively, while ordinary profit would have decreased by 2,911 million yen. These amounts represent the difference between the actual figures and the estimates of the figures for ordinary income, ordinary profit and net income calculated based on the assumption that the business combination was completed at the beginning of the fiscal year ended March 31, 2007. The amortized amount of negative goodwill was calculated assuming that the negative goodwill recognized at the time of the business combination had arisen at the beginning of the fiscal year ended March 31, 2007. The above amounts are un-audited. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 82 Segment Information

Segment information by lines of business

Year ended March 31, 2008 (April 1, 2007–March 31, 2008)

(Yen in millions) Property and Life Others Total Elimination Consolidated casualty I Ordinary income and ordinary profit / loss Ordinary income (1) Ordinary income from transactions with external 2,775,255 887,652 47,161 3,710,069 (3) 3,710,066 customers (2) Ordinary income arising from internal segment 5,470 271 27,705 33,447 (33,447) —. transactions Total 2,780,725 887,924 74,866 3,743,517 (33,451) 3,710,066 Ordinary expenses 2,606,570 883,899 75,671 3,566,141 (35,147) 3,530,994 Ordinary profit / loss 174,155 4,024 (804) 177,375 1,696 179,071 II Assets / Depreciation / Impairment losses of fixed assets and capital expenditure Assets 11,917,672 4,958,610 431,556 17,307,839 (24,597) 17,283,242 Depreciation 25,336 655 225 26,217 —. 26,217 Impairment losses of fixed assets 7,920 734 —. 8,654 —. 8,654 Capital expenditure 20,595 626 290 21,512 (31) 21,480 Notes: 1. The segments are classified based on the characteristics of operation of the Company and its subsidiaries. 2. Major operations of each segment are as follows; Property and casualty: Underwriting property and casualty insurance and related investment activities Life: Underwriting life insurance and related investment activities Others: Securities investment advisory, securities investment trusts business, derivatives business, staffing business and real estate management business 3. The amount of the “Elimination” for “Ordinary income from transactions with external customers” is the transferred amount of the reversal of reserve for bad debt in the amount of 3 million yen, which has been included in “Provision of reserve for bad debts” in “Other ordinary expenses” in the consolidated statements of income. 4. As described in “Basis of presentation and significant accounting policies-(3) Depreciation method of tangible fixed assets- (Change in accounting policies),” the Company and its domestic consolidated subsidiaries have adopted a depreciation method for tangible fixed assets acquired on or after April 1, 2007, in accordance with the amended Corporate Tax Law of Japan. As a result, in comparison with the previous method, ordinary expenses of property and casualty insurance business, life insurance business and other businesses for the fiscal year ended March 31, 2008 increased by 398 million yen, 12 million yen and 9 million yen, respectively. 5. As described in “Basis of presentation and significant accounting policies -(3) Depreciation method of tangible fixed assets-(Change in accounting policies),” the Company and its domestic consolidated subsidiaries amortized the residual value of tangible fixed assets which were acquired on or before March 31, 2007 and which has met the end of the amortization period. The residual value is amortized over a five-year period by the straight-line method. As a result, in comparison with the previous method, ordinary expenses of property and casualty insurance business, life insurance business and other businesses for the fiscal year ended March 31, 2008 increased in the amount of 646 million yen, 1 million yen and 1 million yen, respectively.

Year ended March 31, 2007 (April 1, 2006–March 31, 2007)

(Yen in millions) Property and Life Others Total Elimination Consolidated casualty I Ordinary income and ordinary profit / loss Ordinary income

(1) Ordinary income from transactions with external 2,654,458 1,521,233 43,167 4,218,859 (302) 4,218,557 customers

(2) Ordinary income arising from internal segment 8,127 261 26,158 34,547 (34,547) — transactions Total 2,662,585 1,521,495 69,326 4,253,407 (34,849) 4,218,557 Ordinary expenses 2,480,440 1,539,942 64,788 4,085,171 (34,655) 4,050,515 Ordinary profit / loss 182,145 (18,446) 4,537 168,235 (193) 168,042 II Assets / Depreciation / Impairment losses of fixed assets and capital expenditure Assets 12,270,165 4,584,082 398,494 17,252,742 (25,789) 17,226,952 Depreciation 17,783 344 206 18,334 — 18,334 Impairment losses of fixed assets 4,602 — — 4,602 — 4,602 Capital expenditure 16,969 280 215 17,465 (39) 17,425 WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 83 Performance

Notes: 1. The segments are classified based on the characteristics of operation of the Company and its subsidiaries. 2. Major operations of each segment are as follows; Property and casualty: Underwriting property and casualty insurance and related investment activities Life: Underwriting life insurance and related investment activities Others: Securities investment advisory, securities investment trusts business, derivatives business, staffing business and real estate management business 3. A major component of the “Elimination” for “Ordinary income from transactions with external customers” is due to transferring the amount of 277 million yen from the investment loss under equity method, which is included in the ordinary expenses relating to life segment, to “Investment income under the equity method” in “Other ordinary income” in the consolidated statements of income. 4. As described in “Changes in the basis of consolidated financial statements”, the Company has adopted “Accounting Standard for Business Combinations” (Business Accounting Council, October 31, 2003), “Accounting Standard for Business Divestitures” (ASBJ Statement No. 7, December 27, 2005) and “Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures” (ASBJ Guidance No. 10, revised as of December 22, 2006) for the fiscal year ended March 31, 2007. At the end of the previous fiscal year, the amortization of goodwill recorded in “Assets” and the amortization of negative goodwill recorded in “Liabilities” were offset. However, for the fiscal year ended March 31, 2007, in accordance with the application of the “Accounting Standard for Business Combinations” and “Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures”, the amortization of goodwill is included in “Underwriting and general administrative expenses” in ordinary expenses, and the amortization of negative goodwill is included in “Other ordinary income” in ordinary income. As a result, ordinary income and ordinary expenses of “Property and casualty” and “Life” each increased 2,721 million yen and 248 million yen. Ordinary income and ordinary expenses in “Elimination” decreased 3,645 million yen, respectively. 5. As described in “Changes in the basis of consolidated financial statements”, the Company has adopted “Accounting Standard for Share-based Payment” (ASBJ Statement No.8, December 27, 2005) and “Guidance on Accounting Standard for Share-based Payment” (ASBJ Guidance No.11, May 31, 2006) for the fiscal year ended March 31, 2007. As a result, ordinary expenses of “Property and casualty”, “Life” and “Others” each increased 305 million yen, 30 million yen and 0 million yen.

Segment information by location

Year ended March 31, 2008 (April 1, 2007–March 31, 2008) Segment information by location is omitted since the “business in Japan” constitutes more than 90 percent of the aggregated amount of the ordinary income and the assets of all segments

Year ended March 31, 2007 (April 1, 2006–March 31, 2007) Segment information by location is omitted since the “business in Japan” constitutes more than 90 percent of the aggregated amount of the ordinary income and the assets of all segments

Segment information by overseas sales

Year ended March 31, 2008 (April 1, 2007–March 31, 2008)

(Yen in millions, except percentages) Americas Others Total I Overseas sales 237,677 197,450 435,128 II Consolidated ordinary income 3,710,066 III Ratio of I to II (%) 6.4 5.3 11.7 Notes: 1. Countries and regions are classified into groups based on geographic proximity. 2. Major countries and regions included in each group are as follows: (1) Americas: North America, Brazil (2) Others: United Kingdom, Singapore, and Malaysia 3. “Overseas sales” consists of the sum of overseas sales of domestic consolidated subsidiaries and ordinary income of overseas consolidated subsidiaries.

Year ended March 31, 2007 (April 1, 2006–March 31, 2007) Since overseas sales and ordinary income constitute less than 10% of the consolidated sales and consolidated ordinary income respectively, segment information on overseas sales is omitted.

Transactions with Related parties

Year ended March 31, 2008 (April 1, 2007–March 31, 2008) None of our transactions are specifically described for they are considered immaterial.

Year ended March 31, 2007 (April 1, 2006–March 31, 2007) None of our transactions are specifically described for they are considered immaterial. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 84 Per Share Information

Year ended March 31, 2008 Year ended March 31, 2007 (April 1, 2007 –March 31, 2008) (April 1, 2006 –March 31, 2007)

(Yen) (Yen) Net assets per share 3,195.45 Net assets per share 4,127.60 Net income per share—Basic 133.54 Net income per share-Basic 112.10 Net income per share—Diluted 133.50 Net income per share-Diluted 112.07

The Company conducted a stock split of its shares of common stock effective as of September 30, 2006, whereby one share was split into 500 shares. Assuming that the stock split took place at the beginning of the fiscal year ended March 31, 2006, per share information would be as follows.

(Yen) Net assets per share 3,820.18 Net income per share—Basic 105.96 Net income per share—Diluted 105.94

Note: Calculation of “Net income per share-Basic” and “Net income per share-Diluted” is based on the following figures.

Year ended March 31, 2008 Year ended March 31, 2007 (April 1, 2007–March 31, 2008) (April 1, 2006–March 31, 2007) Net income per share—Basic Net income (Yen in millions) 108,766 93,014 Net income not attributable to common shareholders (Yen in millions) — — Net income attributable to common stocks (Yen in millions) 108,766 93,014 Average number of shares outstanding 814,477,047 829,743,971 Net income per share—Diluted Adjustment of net income (Yen in millions) — — Increase number of common stocks 239,566 199,666 Stock acquisition rights 239,566 199,666 WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 85 Performance

Subsequent Events

Year ended March 31, 2008 Year ended March 31, 2007 (April 1, 2007–March 31, 2008) (April 1, 2006–March 31, 2007)

1. The Company agreed to acquire 100% of the outstanding shares of 1. Pursuant to the changes made to the regulations of the corporate pension Philadelphia Consolidated Holding Corp. ("Philadelphia Consolidated"), a U.S. fund of Tokio Marine, as approved by the board of representatives of Tokio property & casualty ("P&C") insurance group (hereinafter: "the Acquisition") Marine Corporate Pension Fund as of April 19, 2007, Tokio Marine & Nichido amounting to US$4,705 million (505.09 billion yen), through the Company's plans to transfer a portion of its corporate pension fund to a defined- wholly owned subsidiary, Tokio Marine & Nichido Fire Insurance Co., Ltd. contribution pension plan as of July 2, 2007. The Company expects that ("TMNF") on July 23, 2008. the impact of this transfer on its consolidated financial results would be an extraordinary gain of approximately 26,500 million yen for the fiscal year The purpose of the acquisition and overview of Philadelphia Consolidated are ending March 31, 2008. as follows. (1) Purpose of the Acquisition The acquisition of Philadelphia Consolidated enables us to significantly enhance our U.S. platform for local commercial business and to fully realize this key international market. (2) Overview of Philadelphia Consolidated (i) Name of the company Philadelphia Consolidated Holdings Corp. (ii) Head office Philadelphia, Pennsylvania, the U.S. (iii) Business A holding company which owns insurance companies and insurance related companies. (iv) Gross premiums written (2007) US$1,692 million (181.66 billion yen) (v) Total assets (as of Dec.31, 2007) US$4,099 million (4,401.28 billion yen)

(3) Financing The Acquisition will be financed through the utilization of Tokio Marine Group cash on hand, together with borrowings, including non-convertible bond issuance.

(4) Acquisition process Under and in accordance with applicable laws and regulations in the U.S., the Acquisition will be implemented by first establishing TMNF's 100% owned special purpose company in Pennsylvania, and then merging Philadelphia Consolidated and the special purpose company. The merger requires a majority approval of Philadelphia Consolidated's shareholders present at a special meeting called to vote on the Acquisition, and the approval of the shareholder of the special purpose company. Through this process, TMNF will purchase the entire outstanding shares in return for consideration to Philadelphia Consolidated's shareholders. The Acquisition is subject to approval of various regulatory authorities of Japan and the U.S.

(5) Closing The Company intends to proceed expeditiously and expects to complete the process by the fourth quarter of 2008.

(Note) The Japanese yen amounts which described above have been translated at the exchange rate as of July 23, 2008. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 86 Year ended March 31, 2008 Year ended March 31, 2007 (April 1, 2007–March 31, 2008) (April 1, 2006–March 31, 2007)

2. The Company announced that it intended to sell all of the shares of Real 2. The Company jointly made a capital investment of 10,000 million yen with Tokio Marine Vida e Previdencia S.A. (“RTMVP”), a life insurance and pension JP Morgan Chase & Co. (the Company’s share of the investment being 9,010 affiliate in Brazil, to ABN AMRO Brasil Dois Participacoes S.A. (“ABN AMRO”) million yen) in a reinsurance subsidiary “Tokio Marine Bluebell Re Limited”. Subsequently, Tokio Marine Bluebell Re Limited obtained a license to conduct a (1) Cause of sales reinsurance business from the local authorities as of April 24, 2007. Under the shareholders' agreement between the Company and ABN AMRO, entered into when the Company acquired the shares of RTMVP in July 2005, In addition, the Board of Directors of the Company resolved on May 2, 2007 ABN AMRO reserves the right to purchase all the shares of RTMVP held by the to further provide Tokio Marine Bluebell Re Limited with 3,604 million yen for Company if a change of control of either the Company or ABN AMRO occurs. its 4,000 million yen capital increase scheduled for June 2007 to reinforce its financial base. Following the recent change in the control of ABN AMRO, ABN AMRO notified the Company of its intention to exercise its acquisition right in accordance with (1) Purpose of the investment the shareholders' agreement. Tokio Marine Bluebell Re Limited provides reinsurance coverage for guaranteed payments of death benefits and annuities in connection with variable annuity (2) Overview of RTMVP insurance offered by the Company’s subsidiary, Tokio Marine & Nichido (i) Name of the company Financial Life Co., Ltd. Tokio Marine Bluebell Re Limited has been established in Real Tokio Marine Vida e Previdencia S.A. order to control the risks associated with the guaranteed payment obligations (ii) Head office of Tokio Marine & Nichido Financial Life Co., Ltd. by utilizing derivatives-based São Paulo, Brazil strategies through the integration of advanced financial technologies of (iii) Business JP Morgan Chase & Co. and the insurance risk control expertise possessed by Life insurance and pension the Company. This enables Tokio Marine & Nichido Financial Life Co., Ltd. to (iv) Premiums & Pension income (2007) enhance its ability to offer variable annuity insurance to its customers. R$ 1,490 million (102.236 billion yen) (v) Total assets (as of Dec.31, 2007) (2) Profile of Tokio Marine Bluebell Re Limited R$ 5,432 million (372.689 billion yen) (i) Location: The Isle of Man (3) Number of shares to be sold (ii) Major business operations: 99,309 thousand shares Offering reinsurance coverage for guaranteed payments in connection with variable annuity insurance (4) Share of equity after sales (iii) Fiscal year end: None December 31 (iv) Capital stock after the capital increase scheduled for June 2007: (5) Time of sales, sales price of shares 14,000 million yen Undecided (v) Major shareholders and shareholdings percentages: The Company: 90.1% (Note) The Japanese yen amounts which described above have been translated at Aldermanbury Investments Limited: 9.9% the exchange rate as of July 28, 2008. (Wholly owned subsidiary of JP Morgan Chase & Co.)

3. On August 11, 2008, the board of directors of the Company resolved 3. The Company repurchased 6,504,100 shares at a cost of 30,999 million yen repurchases of its own shares, pursuant to Article 156 of the Companies from July 9, 2007 through August 21, 2007, pursuant to the resolution of the Act which is applicable in accordance with Article 165, paragraph 3 of the Board of Directors on July 5, 2007. Companies Act, as detailed below. The Company repurchased 1,577,600 shares at a cost of 6,799 million (1) Class of shares to be repurchased yen from August 23, 2007 through September 14, 2007, pursuant to the Common stock of the Company. resolution of the Board of Directors on August 22, 2007.

(2) Aggregate number of shares to be repurchased On September 18, 2007, the Board of Directors approved repurchase of its Up to 18,000,000 shares. own shares, pursuant to Article 156 which is applicable in accordance with Article 165, paragraph 3 of the Corporation Law, as follows: (a) aggregate (3) Aggregate purchase price of shares number of shares authorized to repurchase is up to 4,000,000 shares, (b) Up to 50 billion yen. aggregate value of shares authorized to repurchase is up to 13,600 million yen, (c) repurchase may be made from October 1, 2007 through November 19, (4) Period in which repurchases may be made 2007. From August 12, 2008 through November 18, 2008 except September 22, 2008 through September 30, 2008. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 87 Performance

Year ended March 31, 2008 Year ended March 31, 2007 (April 1, 2007–March 31, 2008) (April 1, 2006–March 31, 2007)

4. The Company determined to issue stock options to the Company's directors and corporate auditors and to the directors and corporate auditors of its wholly owned subsidiaries on July 23, 2007.

Details are as follows: Stock options (July 2007) Total number of stock options 867 Amount to be paid for the stock 491,000 yen for options each stock option Date of allotment July 23, 2007 Date of payment of consideration in exchange of the stock options July 23, 2007 (Note 1) Persons allotted with the Stock Number of Number of the Stock options persons options allotted Directors and corporate auditors of 17 141 the Company Directors (including non-member of the board) and corporate auditors of 45 648 Tokio Marine & Nichido Directors and corporate auditors of 8 78 Tokio Marine & Nichido Life Total (Note 2) 70 867

(Notes) 1. The stock options are allotted to directors and corporate auditors by offsetting their monetary remuneration claims against the Company and their obligations to pay for the allotment of the stock options. In respect of the directors and corporate auditors of the Company's subsidiaries, such offset described above shall be conducted after the Company assumes from its subsidiaries the monetary remuneration claims held by the directors and corporate auditors against its subsidiaries. 2. Since some directors and corporate auditors of the Company, Tokio Marine & Nichido and Tokio Marine & Nichido Life hold concurrent offices in more than one of the three companies, the actual number of the persons who will be allotted with the stock options is 65. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 88 Related Information to the Consolidated Financial Statements

(Bonds)

Amount Amount Outstanding Outstanding Coupon Issuer Series Issue Date Collateral Maturity 31 Mar 08 31 Mar 07 (%) (Yen in millions) (Yen in millions)

11 Mar 08 0.62 11 Apr 08 99,965 Short-term – — – None – [99,965] 28 Mar 08 0.71 25 Apr 08 Tokio Marine & Nichido 1 Unsecured 2 Dec 99 50,000 50,000 1.96 None 2 Dec 09 1–2 Unsecured 28 Feb 00 15,000 15,000 1.95 None 26 Feb 10 3 Unsecured 20 Sep 00 20,000 20,000 2.14 None 20 Sep 10 4 Unsecured 20 Sep 00 10,000 10,000 2.78 None 18 Sep 20 11 Oct 06 11 Oct 36 Subordinated Bond 7,325 – — 7.80 None – Kiln (UK) Holdings Limited in USD (US$63,974,000) 20 Nov 06 20 Nov 36

12 Sep 03 0.61 12 Mar 08 40,978 41,667 Straight Bond – – None – [5,000] [1,000] 14 Jun 07 1.90 19 May 21

165 156 Straight Bond in Euro 31 Mar 06 2.55 None 31 Mar 11 (EUR1,000,000) (EUR1,000,000)

16 Oct 06 4.30 924 Equity Linked Note – — – None 20 Mar 07 [924] 11 Jan 07 13.10 18 Aug 03 1.80 6 Dec 16 Power Reverse Dual – 30,450 19,050 – None – Currency Note 20 Dec 07 13.00 21 Dec 37 6 Feb 06 2.85 13 Sep 27 Nikkei Average Linked 5,118 – 4,500 – None – Note [3,118] 17 Dec 07 5.00 18 Dec 37 16 Sep 04 0.10 28 Sep 11 Tokio Marine Financial CMS Floater Note – 20,240 20,340 – None – Solutions Ltd. 28 Sep 06 3.12 20 Feb 26 1 Feb 05 0.00 30 Oct 09 Reverse Floater Note – 32,500 36,100 – None – 8 Nov 06 2.60 30 Mar 26 1 Dec 04 3.50 2 Dec 24 FX Linked Digital – 1,250 1,750 – None – Coupon Note 23 Oct 06 10.00 24 Oct 36 16 Jun 05 0.00 21 Jul 15 Snow Ball Note – 17,200 17,350 – None – 26 Oct 06 5.85 29 Jul 35 12 Jul 05 0.00 11 Jan 17 FX Linked Coupon – 53,770 22,970 – None – Note 27 Dec 07 20.31 21 Dec 37 13 Aug 07 14 Aug 08 China Class-A Equity 380 – — 0.00 None – Linked Note [380] 28 Nov 07 28 Nov 08 WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 89 Performance

Amount Amount Outstanding Outstanding Coupon Issuer Series Issue Date Collateral Maturity 31 Mar 08 31 Mar 07 (%) (Yen in millions) (Yen in millions)

29 May 07 12,284 16,432 5.04 29 May 08 Straight Bond in USD – (USD115,451,000) (USD134,992,000) – Yes – 20 Jun 07 [12,284] [10,954] 5.43 20 Jun 08 20 Mar 07 13,559 7,129 5.50 20 Mar 08 Straight Bond in GBP – (GBP64,010,000) (GBP29,841,000) – Yes – Vetra 12 Jul 07 [13,559] [7,129] 6.12 14 Jul 08 Finance Corporation 1,428 Straight Bond in AUD 17 Jul 07 (AUD14,994,000) — 7.17 Yes 17 Jul 08 [1,428] 2,091 Straight Bond in NZD 27 Jul 07 (NZD24,988,000) — 8.74 Yes 28 Jul 08 [2,091] Total — 433,088 283,988 — — — Notes: 1. The figures shown in the parentheses ( ) are the principal amount in foreign currencies. 2. The figures shown in the parentheses [ ] are the principal amount to mature within 1 year. 3. Principal amounts to mature within 5 years after March 31, 2008 are as follows:

(Yen in millions) Within 1 Year Over 1 to 2 Years Over 2 to 3 Years Over 3 to 4 Years Over 4 to 5 Years 134,709 66,000 23,276 13,245 5,900

(Borrowings)

Amount Amount Average Outstanding Outstanding Interest Maturity 31 Mar 08 31 Mar 07 rate (Yen in Millions) (Yen in Millions) (%) Short term borrowings 153 — — — Long term borrowings to be repaid within 1 year 2 3 3.4 — Obligations under lease transactions to be repaid within 1 year — — — — 30 May 10 Long term borrowings other than above 37,544 35,558 1.5 – 20 Mar 32 Obligations under lease transactions other than above — — — — Other interest-bearing liabilities 16,009 122,909 5.4 — Commercial Paper (to be repaid within 1 year) Total 53,711 158,471 — — Notes: 1. Average interest rate is calculated based on the interest rate as of the end of the fiscal year and principal amount outstanding. 2. The above amount is included in “Other liabilities” in the consolidated balance sheets. 3. Principal amount of long term borrowings (other than that which is to be repaid within 1 year) to be repaid within 5 years after March 31, 2008, is as follows:

(Yen in millions) Over 1 to 2 Years Over 2 to 3 Years Over 3 to 4 Years Over 4 to 5 Years Long-Term borrowings 2 1,002 2 6,002

(2) Others None WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 90 WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 91 Performance

Information

Insurance claim and other payment abilities of subsidiary insurance companies and small-amount, short-term insurers

Solvency margin ratio for Tokio Marine & Nichido Fire Insurance

(Unit: Yen in millions % )

Item As of March 31, 2008 As of March 31, 2007 Total amount of solvency margin (A) 4,493,449 5,555,899 Total net assets 715,211 698,248 Price fluctuation reserve 115,628 107,697 Contingency reserve — — Catastrophe loss reserve including earthquake insurance 1,079,319 1,051,753 General allowance for doubtful accounts 1,322 3,211 Net unrealized gains/losses on securities (Prior to tax effect deductions) 2,157,040 3,296,371 Net unrealized gains/losses on real estate 197,955 187,364 Excess amount of policyholders’ contract deposits — — Subordinated debt, etc. — — Deductions 10,000 10,000 Other 236,971 221,251 Total amount of risks (B) 2 2 938,278 1,011,760 E(R1+R2) +(R3+R4) +R5+R6

General insurance risk (R1) 108,178 110,255

Third sector insurance risk (R2) — —

Assumed interest risk (R3) 8,964 5,786

Asset management risk (R4) 453,809 534,904

Business administration risk (R5) 20,274 21,782

Catastrophe risk (R6) 442,754 438,161 Solvency margin ratio (C) 957.8% 1,098.2% [(A)/{(B)×1/2}]×100

Note: The above figures were calculated in accordance with Articles 86 and 87 of the Insurance Business Law of Japan enforcement regulations and Ministry of Finance Official Notification No.50 stipulated in 1996.

Solvency Margin Ratio • In addition to reserves to cover claims payments and payments for maturity-refunds of saving type insurance policies, etc., it is necessary for insurance companies to maintain sufficient solvency in order to cover against risks which may exceed their usual estimates, i.e. the occurrence of major disasters, a big decline in value of assets held by insurance companies, etc. • The solvency margin ratio (C); which is calculated in accordance with the Insurance Business Law, is the ratio of “solvency margin of insurance companies by means of their capital, reserves, etc.” (total amount of solvency margin: (A)) to “risks which will exceed their usual estimates” (total amount of risks: (B)). • “Risks which will exceed their usual estimates” (total amount of risks; (B)) is composed of risks described below. (1) (General) insurance risk, third sector insurance risk: Risks of occurrence of insurance claims in excess of normal expectations (excluding risks relating to major disasters). (2) Assumed interest risk: Risks of invested assets failing to yield assumed interest rates due to the aggravation of investment conditions than expected. (3) Asset management risks: Risks of retained securities and other assets fluctuating in prices in excess of expectations. (4) Business administration risk: Risks beyond normal expectations arising from business management. (That does not fall under other catego- ries.) (5) Catastrophic risk: Risks of the occurrence of major catastrophic losses in excess of normal expectations. (risks such as the Great Kanto Earthquake or Isewan typhoon) WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 92 • “Solvency margin of insurance companies by means of their capital, reserves, etc.” (Total amount of solvency margin: (A)) is total amount of net assets (excluding planned outflows), certain reserves (reserve for price fluctuations, contingency reserves and catastrophe reserves, etc.) and parts of net unrealized gains on real estate. • The solvency margin ratio is one of the indicators for the regulatory authorities to supervise insurance companies. A ratio exceeding 200% indicates adequate ability to meet payments of insurance claims.

Solvency margin ratio for Nisshin Fire & Marine Insurance

(Unit: Yen in millions %)

Item As of March 31, 2008 As of March 31, 2007 Total amount of solvency margin (A) 178,365 222,374 Total net assets 70,195 70,834 Price fluctuation reserve 4,108 3,686 Contingency reserve — — Catastrophe loss reserve including earthquake insurance 65,912 66,079 General allowance for doubtful accounts 256 182 Net unrealized gains/losses on securities (Prior to tax effect deductions) 19,499 65,255 Net unrealized gains/losses on real estate 2,200 -92 Excess amount of policyholders’ contract deposits — — Subordinated debt, etc. — — Deductions — — Other 16,191 16,428 Total amount of risks (B) 2 2 39,663 43,921 E(R1+R2) +(R3+R4) +R5+R6

General insurance risk (R1) 8,034 8,177

Third sector insurance risk (R2) — —

Assumed interest risk (R3) 467 175

Asset management risk (R4) 14,259 18,222

Business administration risk (R5) 895 987

Catastrophe risk (R6) 21,992 22,799 Solvency margin ratio (C) 899.3% 1,012.6% [(A)/{(B)×1/2}]×100

Solvency margin ratio for Tokio Marine & Nichido Life Insurance

(Unit: Yen in millions %)

Item As of March 31, 2008 As of March 31, 2007 Total amount of solvency margin (A) 249,760 231,825 Total net assets 85,529 85,528 Reserve for price fluctuation 2,235 1,834 Contingency reserve 21,717 21,376 General allowance for doubtful accounts 59 45 Net unrealized gains on securities ×90% (× 100% if losses) 12,565 -1,814 Net unrealized gains on real estate×85% (× 100% if losses) — — Excess amount of underwriting reserves based on Zilmer method 63,419 — Subordinated debt, etc. — — Deductions — — Other 64,234 124,855 Total amount of risks (B) 2 2 18,054 17,931 E(R1+R8) +(R2+R3+R7) +R4

Insurance risk (R1) 10,808 13,361

Assumed interest risk (R2) 2,221 2,285

Asset management risk (R3) 8,366 8,554

Business administration risk (R4) 729 726

Minimum guarantee risk (R7) — —

Third sector insurance risk (R8) 2,904 — Solvency margin ratio (C) (A) 2,766.7% 2,585.6% ×100 (1/2)×(B) Notes: 1. The above figures were calculated in accordance with Articles 86, 87, 161, 162 and 190 of the Insurance Business Law of Japan enforcement regulations and Ministry of Finance Official Notification No.50 stipulated in 1996. 2. Excess amount of underwriting reserves based on Zilmer method as of March 31, 2007 is included in “Other.

Solvency margin ratio for Tokio Marine & Nichido Financial Life Insurance

(Unit: Yen in millions %)

Item As of March 31, 2008 As of March 31, 2007 Total amount of solvency margin (A) 96,239 82,225 Total net assets 15,554 12,033 Reserve for price fluctuation 17 9 Contingency reserve 24,833 19,553 General allowance for doubtful accounts — 0 Net unrealized gains on securities ×90% (× 100% if losses) -7 -3 Net unrealized gains on real estate×85% (× 100% if losses) — — Excess amount of underwriting reserves based on Zilmer method 45,841 — Subordinated debt, etc. 10,000 10,000 Deductions — — Other — 40,633 Total amount of risks (B) 2 2 16,627 22,083 E(R1+R8) +(R2+R3+R7) +R4

Insurance risk (R1) 150 192

Assumed interest risk (R2) 2 0

Asset management risk (R3) 1,565 844

Business administration risk (R4) 489 648

Minimum guarantee risk (R7) 14,567 20,588

Third sector insurance risk (R8) 41 — Solvency margin ratio (C) (A) 1,157.5% 744.6% ×100 (1/2)×(B) Notes: 1. The above figures were calculated in accordance with Articles 86, 87, 161, 162 and 190 of the Insurance Business Law of Japan enforcement regulations and Ministry of Finance Official Notification No.50 stipulated in 1996.

2. The minimum guarantee risk was calculated using the standard method. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 94 Solvency margin ratio for Millea Nihon Kosei SS Insurance

(Unit: Yen in millions %)

Item As of March 31, 2008 As of March 31, 2007 Total amount of solvency margin (A) 755 Total net assets excluding planned outflows 755 Reserve for price fluctuation — Catastrophe loss reserve — General allowance for doubtful accounts — Net unrealized gains on securities (Prior to tax effect deductions) — Net unrealized gains/losses on real estate — Refund reserve premium — Future profit — Tax effect equivalent value — Subordinated debt, etc. — Deductions — Total amount of risks (B) 2 2 18 ER1 +R2 +R3+R4 Equivalent insurance risk 11

General insurance risk equivalent value (R1) 1

Catastrophe risk equivalent value (R4) 10

Asset management risk equivalent value (R2) 7

Business administration risk equivalent value (R3) 0 Solvency margin ratio (C) 8,278.3% [(A)/{(B)×1/2}]×100 Notes: 1. Millea Nihon Kosei SS Insurance became a subsidiary of Tokio Marine Holdings in fiscal 2007, therefore, figures are not shown for fiscal 2006. 2. The above figures were calculated in accordance with Articles 211-59 and 211-60 of the Insurance Business Law of Japan enforcement regulations and Financial Services Agency’s Official Notification No.14 stipulated in 2006. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 95 Performance

Interest-rate Sensitivity of ALM Surplus Value The following tables show how the hypothetical changes in interest rates affect the present value of the surplus in Tokio Marine & Nichido and in Tokio Marine & Nichido Life’s asset-liability portfolio as of March 31, 2008 and March 31, 2007. The asset-liability portfolio is composed of assets to meet future obligations and reserves for insurance policies including deposit-type insurance and long-term insurance policies ,and is measured as the difference between the present value of assets and that of liabilities (before taxes and future policy dividends).

Tokio Marine & Nichido

(Yen in billions)

Yield curve shift (1)

As of March 31, 2008 -1% 0% 1% 2% General Policy Account (5.6) 0.0 0.6 (1.2) Deposit-Type Insurance Accounts (4.5) 0.0 0.6 (5.0) Asset-Liability Portfolio (10.1) 0.0 1.2 (6.2)

(Yen in billions)

Yield curve shift (1)

As of March 31, 2007 -1% 0% 1% 2% General Policy Account (6.8) 0.0 1.0 (0.7) Deposit-Type Insurance Accounts (27.7) 0.0 19.4 29.7 Asset-Liability Portfolio (34.5) 0.0 20.4 29.0

Tokio Marine & Nichido Life (Yen in billions)

Yield curve shift (1)

As of March 31, 2008 -1% 0% 1% Asset-Liability Portfolio (45.7) 0.0 (27.2)

(Yen in billions)

Yield curve shift (1)

As of March 31, 2007 -1% ±0% +1% Asset-Liability Portfolio (70) 0.0 (2.9)

(1) Based on the prevailing yield curve for Japanese government bonds on the indicated dates. (2) The information presented above has been prepared solely for risk management purposes and is not indicative of the actual effect on the financial condition, results of operations or corporate value of Tokio Marine & Nichido and Tokio Marine & Nichido Life caused by the changes in past or future interest rates . (3) The information indicates the hypothetical changes of the present value of ALM surplus value and accordingly the numbers of Tokio Marine & Nichido Life presented above may be different from those which are described in table “4. Effects of Changes in Assumptions” of “Embedded Value for Tokio Marine & Nichido Life as of March 31, 2008.” (4) Tokio Marine & Nichido Life: On the basis taking dynamic lapse into consideration WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 96 Embedded Value About Embedded Value Embedded Value is (referred to as “EV” hereinafter) is the method of evaluating value and performance adopted by life insurance. In Japan, more than ten insurance companies announced their EV as of the end of FY2007. It is calculated as the sum of the “Net Asset Value” and “Value of in-force business.” “Net Asset Value” is calculated by adding contingency reserve and price fluctuation reserve (both after tax), deemed appropriate to be included in net asset, to the “Net Asset Section (net asset)” of the Balance Sheets. “Value of in-force business” is the present in-force business value, based on the potential “current net earning (after tax)” that may arise from the in-force business, where a discount rate that takes into consideration a risk premium is applied to distributable stockholder return after deducting the internal reserve required to maintain a certain level of solvency margin ratio. The financial accounting practices of Japanese life insurance companies emphasize a conservative approach for the purpose of best protecting their policyholders. As such, policies are initially valued as a minimal contribution to profits, limiting the usefulness of their value and impact on earnings evaluations in the life insurance business. EV adjusts for this conservatism in financial accounting practices, enabling a proper evaluation based on value and earnings that reflect actual business conditions.

The Tokio Marine Group adopts “change in EV” and “ROE”, as measures used for assessing its performance in the life insurance business.

Embedded Value for Tokio Marine & Nichido Life 1. EV as of March 31, 2008 EV as of March 31, 2008 totaled ¥364.3 billion, with net asset value at ¥108.6 billion and value of in-force business at ¥255.7 billion.

(Yen in billions)

FY2007 FY2006 FY2005 Net asset value 108.6 97.6 45.8 Value of in-force business 255.7 237.5 209.0 EV as at the end of the fiscal year 364.3 335.2 254.8 Value of new business 3.7 8.7 10.7

2. Change in EV and ROE The change in EV for FY2007 was ¥29.1 billion, while ROE for FY2007 was 8.3%.

The Change in EV for FY2007 (excluding the capital increase during the term) decreased ¥1.2 billion from the previous fiscal year. This is because “value of new business” decreased ¥4.9 billion yen, to ¥3.7 billion, from ¥8.7 billion in the previous year due to the decline in the sales of policies accompanied by the suspension of sales of increasing term life insurance policies and the effect of self restraint on the sales activities of cross-selling agents due to the business suspension at Tokio Marine & Nichido.

(Yen in billions)

FY2007 FY2006 FY2005 Change in EV (excluding the capital increase during the term) 29.1 30.4 57.5 Average balance of EV 349.7 295.0 226.0 ROE Note 8.3% 10.3% 25.4% (Reference) Change in EV (excluding the capital increase during the term, and effect 25.3 29.8 29.4 of changes in assumption and investments yield)

Note: ROE = Change in EV (excluding the capital increase during the term)/Average EV WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 97 Performance

3. Major Assumptions The major assumptions used in calculating the value of in-force business at March 31, 2008 were as follows:

Assumption Basis of assumption Based on past experience by benefit type, and policy year and attained age, etc. Mortality and morbidity rates For policy years where no experience data was available, assumptions have been based on industry statistics. Laps and Surrender rate Based on past surrender performance by insurance type, payment method and policy year. Expenses Based on past actual expenses, expressed as unit costs per in-force policy. Assumed to be invested in Japanese Government bonds (JGB)matched to the duration of liabilities (*). The JGB yield used is the yield as of the valuation date of the EV (at the end of fiscal year) as follows: Investment yield on new money FY2006: 10yrs, 1.66%; 20yrs 2.10%; 30yrs 2.35% FY2007: 10yrs, 1.25%; 20yrs 2.10%; 30yrs 2.40% Effective tax rate Based on actual experience (36.12%) Solvency Margin Ratio Assumed to maintain a solvency margin ratio of 600%. Set by adding a risk premium of 6% to the risk free rate (the 20-year JGB Yield). Risk discount rate FY2006: Risk-free interest rate (2.10%)+6%R8% FY2007: Risk-free interest rate (2.10%)+6%R8% *Note: Average investment yield is approximately 2.3%.

New money is assumed to be invested in JGBs matched to the duration of liabilities.

The risk discount rate has been set by adding a risk premium of 6% to the risk free rate (the 20-year JGB yield). The risk premium has not been changed between FY2006 and FY2007. The Tokio Marine Group set a risk premium of 6.0% as the required level for its domestic life insurance business.

4. Effects of Changes in Assumptions The table below shows the change in EV arising from changes to assumptions:

(Yen in billions)

Change in Assumptions Effect on EV EV Amount Set 1.1 times the insurable mortality and morbidity rate (17.5) 346.8 Set 1.1 times the surrender rate (2.9) 361.4 Set 1.1 times the expense (5.1) 359.1 Investment yield (yield of JGB) up 0.25%* 6.1 370.5 Investment yield (yield of JGB) down 0.25%* (6.2) 358.1 Set solvency margin ratio at 500% 0.9 365.3 Set solvency margin ratio at 700% (1.3) 363.0 Reduce risk premium by 2.0% (with 6% discount rate) 47.9 412.3 Reduce risk premium by 1.0% (with 7% discount rate) 22.0 386.4 Raise risk premium by 1.0% (with 9% discount rate) (19.0) 345.3 Raise risk premium by 2.0% (with 10% discount rate) (35.5) 328.7

*Note: Based on the assumption that only investment yield is changed without changes in the risk discount rate.

The change in assumed investment yield is set based on the assumption that it will be affected by any increase/decrease in JGB yield (risk-free market interest rate). Also, the increase/decrease in unrealized gains/losses arising from changes in interest rates is taken into consideration. For the purpose of the above increase/decrease, the EV has been recalculated on the basis that the risk discount rate is unchanged.

Any increase or reduction in discount rate is in tandem with the fluctuations in market interest rates and increases or reductions in the risk premium rate. However, in this case, the market interest rate is fixed and the effect is calculated based on the fluctuation of the risk premium. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 98 5. Breakdown of Factors on Change in EV

(Yen in billions)

FY2007 FY2006 Year-on-year change Capital increase during the term — 50.0 (50.0) Value of new business 3.7 8.7 (4.9) Release of the discounted value of in-force business 19.3 16.7 2.6 Variances between assumptions and actual performance 0.8 3.7 (2.8) Effect of changes in investment yields 1.8 1.4 0.4 Effect of changes in assumption 1.9 (0.8) 2.7 Others 1.3 0.6 0.7 Total 29.1 80.4 (51.2) (Excluding capital increase during the term) 29.1 30.4 (1.2)

The change in EV, excluding capital increase during the term, consists of two major components, the value of new business (new businesses issued in FY2007) and others.

(1) Value of new business The value of new business written for FY2007 was 3.7 billion yen, a decrease of ¥4.9 billion from the previous fiscal year. For FY2007, the decline in the sales of new policies due to the suspension of sales of increasing term life insurance policies and the effect of self restraint on the sales activities of cross-selling agents due to the business suspension of third-sector products at Tokio Marine & Nichido led to a decrease in the value of new business.

(2) Changes other than value of new business “Variances between assumption and actual performance “ for FY2007 amounted to ¥0.8 billion, a decrease of ¥2.8 billion from the previous fiscal year. This was mainly because of the increase in expenses related to in-force policies and the effect of changes in assumptions made in FY2006. Regarding other factors, “Release of the discounted value of in-force business” was ¥19.3 billion, an increase from the previous fiscal year, accompanying the increased in-force business value. “Effect of changes in assumptions” and “others” also increased from the previous year.

6. Review by Independent Actuarial Firm To ensure the validity and appropriateness of the EV evaluation, Tokio Marine & Nichido Life engaged Tillinghast, an independent actuarial firm, to review its EV and obtained that company’s opinion.

7. Instruction As EV is calculated based on assumptions that include future prospects concerning risk and uncertainty, actual future results can differ largely from the assumptions used in EV calculation. Also, since actual market capital is determined by investors’ judgment based on a range of information, EV can significantly differ from it. Therefore, sufficient consideration needs to be made in using EV.

8. Embedded Value News Releases The company’s website (http://www.tmn-anshin.co.jp/) presents news releases about embedded value, including the opinion of Tillinghast and data on net asset value, the value of in-force business and the value of new business written. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 99 Performance

Embedded Value for Tokio Marine & Nichido Financial Life 1. EV as of March 31, 2008 EV as of March 31, 2008 totaled ¥94.3 billion, with net asset value at ¥40.3 billion and value of in-force business at ¥53.9 billion.

(Yen in billions)

FY2007 FY2006 FY2005 Net asset value 40.3 31.6 18.5 Value of in-force business 53.9 67.1 42.4 EV as at the end of the fiscal year 94.3 98.7 61.0 Value of new business 2.6 14.1 7.4

2.Change in EV and ROE Excluding the capital increase during the term, the EV as of March 31, 2008 decreased ¥14.4 billion from that of March 31, 2007 (the change in EV: ¥(14.4) billion), while ROE was -14.9%.

(Yen in billions)

FY2007 FY2006 FY2005 Change in EV (excluding the capital increase during the term) (14.4) 17.8 15.4 Average EV 96.5 79.8 43.2 ROE Note (14.9)% 22.3% 35.7% Note: ROE=Change in EV (excluding the capital increase during the term)/Average EV

The Change in EV as of March 31, 2008 (excluding the capital increase during the term) was down ¥32.2 billion compared with that as of March 31, 2007. However, when “Variances between actual performance and assumptions on investment” and “Effect of changes in assumptions” are excluded, the change in EV as of March 31, 2008 was ¥6.9 billion, a decrease of ¥5.2 billion from the previous fiscal year’s ¥12.2 billion.

Reference FY2007 FY2006 FY2005 Change in EV Note 6.9 12.2 5.2 Note: Excluding the capital increase during the term, variances between actual performance and assumptions on investment and effect of changes in assumptions. For FY2005, the effect of subordinated loans was also excluded.

3. Major Assumptions The major assumptions used in the calculations of value of in-force business were as follows: Assumption Basis of assumption Mortality rate Based on past claim payment performance by insurance type, policy year, etc. Surrender rate Based on past surrender performance by insurance type, payment method and policy year Expense Based on past actual expenses, expressed as unit costs per in force policy Investment earnings ratio for Based on earnings ratio of portfolio (stock fund, bond fund, and money fund) by insurance policy type separate accounts Effective tax rate Based on actual experience (36.2%) Solvency margin ratio Assumed to maintain a solvency margin ratio of 600% Risk discount rate Set by adding a risk premium of 6% to the risk free rate(the 20-year JGB Yield) FY2006:Risk-free interest rate (2.10%)+6%R8% FY2007:Risk-free interest rate (2.10%)+6%R8%

The investment earnings ratio for separate accounts is set by insurance policy type: 4% stock fund, 1.28% bond fund and 0.1% money fund.

The risk discount rate has been set by adding a risk premium of 6% to the risk free interest rate (the 20-year JGB yield). The risk premium has not been changed between FY2006 and FY2007. The Tokio Marine Group set a risk premium of 6.0% as the required level for its domestic life insurance business. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 100 4. Effects of Changes in Assumptions The table below shows the change in EV arising from changes to assumptions:

(Yen in billions)

Change in Assumptions Effect on EV EV Amount Set 1.1 times the insurable mortality rate (0.7) 93.5 Set 1.1 times the surrender rate (0.2) 94.0 Set 1.1 times the expense (0.7) 93.5 When the balance of actual cash value of separate accounts is instantly reduced by 10% (17.5) 76.7 Set solvency margin ratio at 500% 0.8 95.1 Set solvency margin ratio at 700% (1.0) 93.2 Reduce risk premium by 2.0% (with 6% discount rate) 4.6 98.9 Reduce risk premium by 1.0% (with 7% discount rate) 2.2 96.5 Raise risk premium by 1.0% (with 9% discount rate) (2.1) 92.1 Raise risk premium by 2.0% (with 10% discount rate) (4.0) 90.2

5. Breakdown of Factors on Change in EV

(Yen in billions)

FY2007 FY2006 Year-on-year change Capital increase during the term 10.0 20.0 (10.0) Value of new business 2.6 14.1 (11.4) Release of the discounted value of in-force business 6.6 5.1 1.6 Variances between actual performance and assumptions on investment (21.5) 3.4 (24.9) Variances between actual performance and assumptions on others (1.4) -0.2 (1.2) Effect of reinsurance pertaining to deferment policies (0.8) -6.8 5.8 Effect of changes in assumptions 0.1 2.2 (2.0) Total (4.4) 37.8 (42.2) (Excluding capital increase during the term) (14.4) 17.8 (32.2)

The change in EV, excluding capital increase during the term, consists of two major components, the value of new business and others.

(1) Value of new business The value of new business written for FY2007 was ¥2.6 billion, a decrease of ¥11.4 billion from the previous fiscal year. This reflects a decrease in new business volume for FY2007.

(2) Changes other than Value of new business Actual performance on investment was ¥21.5 billion lower than the assumptions, which was due to the decrease in M&E to be earned in the future in proportion to the total amount of net assets of the separate account, resulting from the fact that the actual performance of the separate account fell short of the assumptions. The effect of reinsurance pertaining to deferment policies for FY2007 was -¥0.8 billion, which was due to the impact by reinsurance for those policies issued before the previous fiscal year. The release of the discounted value of in-force business for FY2007 was ¥6.6 billion, an increase of ¥1.6 billion from the previous fiscal year, as was accompanied by an increase in the value of in-force business. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 101 Performance

6. Review by Independent Actuarial Firm To ensure the validity and appropriateness of the EV evaluation, Tokio Marine & Nichido Financial Life engaged Tillinghast, an independent actuarial firm, to review its EV and obtained that company’s opinion.

8. Embedded Value News Releases The company’s website (http://www.tmn-financial.co.jp/) presents news releases about embedded value, including the opinion of Tillinghast and data on net asset value, the value of in-force business and the value of new business written. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 102 Statutory Reserve

Property and casualty insurance a Tokio Marine & Nichido Fire Insurance Co., Ltd.

(Yen in millions)

Year ended March 31, 2008 Year ended March 31, 2007 Catastrophy loss reserve 937,307 916,319 Price fluctuation reserve 115,628 107,697 b Nisshin Fire & Marine Insurance Co., Ltd.

(Yen in millions)

Year ended March 31, 2008 Year ended March 31, 2007 Catastrophy loss reserve 54,602 55,292 Price fluctuation reserve 4,108 3,686

Life insurance a Tokio Marine & Nichido Life Insurance Co., Ltd.

(Yen in millions)

Year ended March 31, 2008 Year ended March 31, 2007 Contingency reserve 21,717 21,376 Price fluctuation reserve 2,235 1,834 b Tokio Marine & Nichido Financial Life Insurance Co., Ltd.

(Yen in millions)

Year ended March 31, 2008 Year ended March 31, 2007 Contingency reserve 24,883 19,553 Price fluctuation reserve 17 9 WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 103 Performance WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 104 Corporate Data

Corporate Data 106 CorporateFacilities 116 History of the TokioData Marine Group 120 WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 105 Corporate Data

Corporate Data

Stock Information (As of March 31, 2008) Stock issued by Tokio Marine Holdings is common stock and the total number of authorized shares is 3.3 billion shares with the total number of shares outstanding at 804,524,375 shares (including treasury shares) as of March 31, 2008. a. The Ordinary General Meeting of Shareholders is held within three months of the end of each fiscal year. b. Accounting period: Ends March 31 c. Share registrar: The Mitsubishi UFJ Trust and Banking Corporation d. Record date: Ordinary General Meeting of Shareholders: March 31 Year-end dividend: March 31 Interim dividend: September 30 e. Public notice will be electronically published. However, in the event that public notice cannot be electronically published due to an accident or other compelling reason, a notification shall be published in the Tokyo issue of the Nihon Keizai Shimbun. f. Stock/security exchange listings: Tokyo Stock Exchange (First Section), Osaka Securities Exchange (First Section)

Matters for the General Meeting of Shareholders The 6th Ordinary General Meeting of Shareholders was held on June 23, 2008. The items reported and the proposals acted upon were as follows:

(Items reported) 1. Business report, consolidated financial statements and the audit reports on consolidated financial statements prepared by the independent auditor and the Board of Corporate Auditors, respectively, for the fiscal year ended March 31, 2008 (April 1, 2007 to March 31, 2008) 2. Non-consolidated financial statements for the fiscal year ended March 31, 2008 (April1, 2007 to March 31, 2008)

(Proposals acted upon) 1. Appropriation of Surplus 2. Amendment to the Articles of Incorporation 3. Election of Thirteen (13) Directors

The proposals have been approved as proposed.

Stock Ownership Distribution As of March 31, 2008, the number of shareholders was 103,497. The percentage of major stock ownership was: financial institutions: 36.97%, foreign shareholders: 38.82%. a. Types of shareholder (As of March 31, 2008) Number of shareholder(s) Number of shares held Shareholding ratio (%) Government/Local government 1 500 0.00 Financial institutions 277 297,425,802 36.97 Securities companies 65 6,582,377 0.82 Other domestic corporations 2,126 73,327,546 9.11 Foreign shareholders 647 312,335,353 38.82 Individuals and others 100,380 112,559,780 13.99 Total 103,497 804,524,375 100.00 WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 106 b. Breakdown by region (As of March 31, 2008) Region Number of shareholder(s) Shareholders’ ratio (%) Number of shares held Shareholding ratio (%) Hokkaido 1,422 1.37 4,612,493 0.57 Tohoku 2,385 2.30 4,228,160 0.53 Kanto 46,923 45.34 415,838,384 51.69 Chubu 16,593 16.03 26,163,069 3.25 Kinki 24,315 23.49 31,892,767 3.96 Chugoku 4,257 4.11 4,085,124 0.51 Shikoku 2,850 2.75 4,687,759 0.58 Kyushu 4,110 3.97 7,055,568 0.88 Overseas and others 642 0.62 305,961,051 38.03 Total 103,497 100.00 804,524,375 100.00 c. Breakdown by number of shares held (As of March 31, 2008) 5,000 units 1,000 units 500 units or 100 units or 50 units or 10 units or 5 units or 1 unit or Less than 1 unit Category or more or more more more more more more more Number of shareholder(s) 189 254 176 1,405 3,199 26,424 23,883 28,246 19,721 Composition ratios to total number of share holders (%) 0.18 0.25 0.17 1.36 3.09 25.53 23.08 27.29 19.05 Number of shares 620,161,875 58,382,026 11,670,136 24,840,729 20,635,114 49,594,546 13,201,718 5,282,140 756,091 Composition ratios to total number of shares (%) 77.08 7.26 1.45 3.09 2.56 6.16 1.64 0.66 0.09

Major shareholders

(As of March 31, 2008) Composition Number of ratios to Shareholders Address shares held total number (thousand shares) of shares (%) State Street Bank and Trust Company P. O. Box 351 Boston, Massachusetts, U.S.A. (Custodian: Mizuho Corporate Bank, Ltd.) (6-7, Nihombashi Kabutocho, Chuo-ku, Tokyo) 59,144 7.4 Moxley & Co. New York Plaza 13th FL. 4, New York, New York, U.S.A. (Custodian: The Bank of Tokyo-Mitsubishi UFJ, Ltd.) (7-1, Marunouchi 2-chome, Chiyoda-ku, Tokyo) 43,145 5.4 The Master Trust Bank of Japan, Ltd. 11-3, Hamamatsucho 2-chome, Minato-ku, Tokyo (Trust Account) 38,344 4.8 Japan Trustee Services Bank, Ltd. 8-11, Harumi 1-chome, Chuo-ku, Tokyo (Trust Account) 32,821 4.1 Meiji Yasuda Life Insurance Company 1-1, Marunouchi 2-chome, Chiyoda-ku, Tokyo (Custodian: Trust & Custody Services Bank, Ltd.) (Harumi Island Triton Square office tower Z, 8-12, Harumi 1-chome, Chuo-ku, Tokyo) 20,498 2.5 The Bank of Tokyo-Mitsubishi UFJ, Ltd. 7-1, Marunouchi 2-chome, Chiyoda-ku, Tokyo 20,066 2.5 Trust & Custody Services Bank, Ltd. as a trustee for Harumi Island Triton Square office tower Z, Mizuho Trust Retirement Benefits Trust Account for 8-12, Harumi 1-chome, Chuo-ku, Tokyo Mitsubishi Heavy Industries, Ltd 14,074 1.7 State Street Bank and Trust Company 505103 P. O. Box 351 Boston, Massachusetts, U.S.A. (Custodian: Mizuho Corporate Bank, Ltd.) (6-7, Nihombashi Kabutocho, Chuo-ku, Tokyo) 12,899 1.6 The Master Trust Bank of Japan, Ltd. Retirement Benefits 11-3, Hamamatsucho 2-chome, Minato-ku, Tokyo Trust Account for Asahi Glass Co., Ltd. 11,630 1.4 The Master Trust Bank of Japan, Ltd. Retirement Benefits 11-3, Hamamatsucho 2-chome, Minato-ku, Tokyo Trust Account for Mitsubishi Corporation 10,832 1.3 Total — 263,456 32.7 Note: Moxley & Co. is the corporate nominee holder of common stock deposited for the issuance of ADRs. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 107 Corporate Data

Resolution Regarding Share Repurchases In order to implement flexible financial policies, our Articles of Incorporation provides that “The Company may, by resolution of the Board of Directors, acquire its own shares pursuant to Article 165, paragraph 2 of the Companies Act.” Share repurchases made after the 5th Ordinary General Meeting of Shareholders and up to the 6th Ordinary General Meeting of Shareholders pursuant to resolutions of the Board of Directors in accordance with our Articles of Incorporation were as follows: Number of common stock repurchased: 21,074,200 shares Aggregate purchase prices of shares: ¥89,998,953 thousand Reason for the repurchases: To implement flexible financial policies

Dividend Policy With respect to the appropriation of surplus, the Company seeks to improve shareholder returns by distributing stable dividends on its common stock and by repurchasing its own shares after taking into consideration the business results and expected future environment of the Company, subject to the Company having provided sufficient capital to meet the business needs of the Tokio Marine Group. In accordance with the above policy, and in consideration of various factors, the Company proposed and was approved to pay 30 yen per share of common stock of the Company as year-end cash dividends. As 18 yen per share was paid as an interim cash dividend, the amount of total annual cash dividends was 48 yen per share for the fiscal year ended March 31, 2008. This was an increase of total annual cash dividends of 12 yen per share from 36 yen per share paid for the previous fiscal year. Additionally, the Company proposed and was approved to set aside 23.0 billion yen as general reserve.

Capital

Date Equity capital April 2, 2002 ¥150 billion March 31, 2008 ¥150 billion

External/Internal Audit Tokyo Marine Holdings is subject to inspections conducted by the Financial Services Agency of Japan pursuant to Article 271-28 of the Insurance Business Law. The Company is also subject to an external audit conducted by PricewaterhouseCoopers Aarata, the Company’s independent auditor, pursuant to the Companies Act and the Financial Instruments and Exchange Law. Additionally, the Company is subject to a statutory audit conducted by Corporate Auditors in accordance with the Companies Act and an internal audit performed by the Internal Audit Department. The internal audit is performed based on the “Internal Auditing Rules” that have been approved by the Board of Directors. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 108 List of Directors and Corporate Auditors Directors

(As of July 1, 2008) Name Number of Title (Date of birth) Biography Responsibilities shares held Chairman of Kunio Ishihara April 1966 Joined Tokio Marine 36,820 the Board (October 17, 1943) June 1995 Director and General Manager of Hokkaido Regional Headquarters of Tokio Marine June 1998 Managing Director and General Manager of Hokkaido Regional Headquarters of Tokio Marine July 1998 Managing Director and General Manager of Hokkaido Division of Tokio Marine June 1999 Managing Director of Tokio Marine June 2000 Senior Managing Director of Tokio Marine June 2001 President of Tokio Marine April 2002 President of Millea Holdings Oct. 2004 President of Tokio Marine & Nichido June 2007 Chairman of the Board of Tokio Marine & Nichido (to present) June 2007 Chairman of the Board of Millea Holdings July 2008 Chairman of the Board of Tokio Marine Holdings (to present) President & Shuzo Sumi April 1970 Joined Tokio Marine 11,005 Representative (July 11, 1947) June 2000 Director and Chief Representative in London, Overseas Division of Director Tokio Marine July 2001 Director, General Manager and Chief Representative in London, Overseas Division of Tokio Marine June 2002 Managing Director of Tokio Marine Oct. 2004 Managing Director of Tokio Marine & Nichido June 2005 Senior Managing Director of Tokio Marine & Nichido Dec. 2005 Senior Managing Director and General Manager of Drastic Reform Promotion Dept. of Tokio Marine & Nichido June 2006 Senior Managing Director of Tokio Marine & Nichido June 2007 President of Tokio Marine & Nichido (to present) June 2007 President of Millea Holdings July 2008 President of Tokio Marine Holdings (to present) (Representation of other companies: President of Tokio Marine & Nichido) Executive Toshiro Yagi April 1971 Joined Tokio Marine Assistant to 21,005 Vice President (November 1, 1947) June 2001 Director and General Manager of Chemical Industry Promotion Dept., the President; & Tokyo Corporate Business Division I of Tokio Marine In charge of Representative Oct. 2001 Director and General Manager of Corporate Planning Dept. of Tokio Marine Corporate Planning Director June 2002 Director and General Manager of Corporate Planning Dept. of Tokio Marine Dept. (excluding June 2003 Managing Director of Tokio Marine Internal Control June 2003 Director of Millea Holdings Group), Personnel Oct. 2004 Managing Director of Tokio Marine & Nichido Planning Dept. June 2005 Managing Director and General Manager of Corporate Planning Dept. of and Legal Dept.; Tokio Marine & Nichido Assistant to June 2006 Retired from his position as Managing Director of Tokio Marine & Nichido the Directors June 2006 Senior Managing Director of Millea Holdings in charge of June 2007 Executive Vice President of Millea Holdings Compliance Dept., July 2008 Executive Vice President of Tokio Marine Holdings (to present) Risk Management Dept. and Internal Audit Dept. Senior Daisaku Honda May 1972 Joined Tokio Marine In charge of 12,400 Managing (September 28, 1949) June 2002 Director and General Manager of New Financial Markets Dept., Corporate Planning Director & Investment and Financial Services Division of Tokio Marine Dept. (Internal Reresentative Oct. 2004 Director and General Manager of New Financial Markets Dept. of Control Group), Director Tokio Marine & Nichido Corporate June 2005 Managing Director of Tokio Marine & Nichido Accounting Dept., June 2007 Senior Managing Director of Tokio Marine & Nichido Business June 2008 Retired from his position as Senior Managing Director of Development & Tokio Marine & Nichido Support Dept., June 2008 Senior Managing Director of Millea Holdings Compliance Dept., July 2008 Senior Managing Director of Tokio Marine Holdings (to present) Risk Management Dept. and Internal Audit Dept. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 109 Corporate Data

Directors

(As of July 31, 2008) Name Number of Title (Date of birth) Biography Responsibilities shares held Senior Hiroshi Amemiya April 1973 Joined Tokio Marine In charge of 13,705 Managing (October 2, 1950) June 2002 Director and General Manager of Nagoya Production Dept. III, Financial Planning Director Tokai Division of Tokio Marine Dept. June 2003 Director and General Manager of Corporate Planning Dept. of Tokio Marine Oct. 2004 Director and General Manager of Corporate Planning Dept. of Tokio Marine & Nichido June 2005 Managing Director of Tokio Marine & Nichido June 2005 Director of Millea Holdings June 2007 Managing Director and General Manager of Financial Planning Dept. of Tokio Marine & Nichido Aug. 2007 Managing Director of Tokio Marine & Nichido June 2008 Senior Managing Director of Tokio Marine & Nichido (to present) June 2008 Senior Managing Director of Millea Holdings July 2008 Senior Managing Director of Tokio Marine Holdings (to present) Managing Shin-Ichiro Okada April 1973 Joined Tokio Marine In charge of 4,000 Director (July 7, 1950) June 2005 Director and General Manager of Commercial Lines Underwriting Dept. International of Tokio Marine & Nichido Business Dept., and June 2007 Director of Tokio Marine & Nichido matters relating to June 2007 Managing Director of Millea Holdings planning and June 2008 Managing Director of Tokio Marine & Nichido (to present) implementing July 2008 Managing Director of Tokio Marine Holdings (to present) strategies for Europe, the Middle East region and Reinsurance. Managing Hiroshi Endo April 1975 Joined Tokio Marine In charge of 10,500 Director (May 31, 1952) June 2005 Director and General Manager of Corporate Accounting Dept. of Tokio International Marine & Nichido Business Dept. June 2006 Director and General Manager in charge of Asia region of relating to planning Tokio Marine & Nichido and implementing June 2008 Retired from his position as Director of Tokio Marine & Nichido strategies for June 2008 Managing Director of Millea Holdings America , Asia and July 2008 Managing Director of Tokio Marine Holdings (to present) Oceania. Director Minoru Makihara March 1956 Joined Mitsubishi Corporation 14,300 (January 12, 1930) June 1986 Director of Mitsubishi Corporation June 1988 Managing Director of Mitsubishi Corporation June 1990 Senior Managing Director of Mitsubishi Corporation June 1992 President of Mitsubishi Corporation June 1993 Director of Tokio Marine (outside director) — April 1998 Chairman of the Board of Directors of Mitsubishi Corporation April 2002 Retired from position as Director of Tokio Marine (outside director) April 2002 Director of Millea Holdings (outside director) April 2004 Director and Senior Corporate Advisor of Mitsubishi Corporation June 2004 Senior Corporate Advisor of Mitsubishi Corporation (to present) July 2008 Director of Tokio Marine Holdings (to present) Director Masamitsu Sakurai April 1966 Joined Ricoh Company, Ltd. — (January 8, 1942) June 1992 Director of Ricoh Company, Ltd. June 1994 Managing Director of Ricoh Company, Ltd. March 1995 Managing Director and General Manager, Research & Development Group of Ricoh Company, Ltd. Jan. 1996 Managing Director and General Manager, Business Development Center of Ricoh Company, Ltd. April 1996 President of Ricoh Company, Ltd. — April 2002 Director of Millea Holdings (outside director) June 2005 Representative Director and President of Ricoh Company, Ltd. April 2007 Representative Director and Chairman of the Board of Ricoh Company, Ltd. (to present) July 2008 Director of Tokio Marine Holdings (to present) (Representation of other companies: Representative Director and Chairman of the Board of Ricoh Company, Ltd.) Director Haruo Shimada April 1967 Research Assistant, Faculty of Economics, Keio University — (February 21, 1943) April 1975 Associate Professor, Faculty of Economics, Keio University April 1982 Professor, Faculty of Economics, Keio University April 2002 Director of Millea Holdings (outside director) — March 2007 Retired from position as Professor, Faculty of Economics, Keio University April 2007 Dean of Chiba University of Commerce (to present) July 2008 Director of Tokio Marine Holdings (to present) WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 110 Directors

(As of July 31, 2008) Name Number of Title (Date of birth) Biography Responsibilities shares held Director Tomochika Iwashita July 1969 Joined Tokio Marine 19,715 (November 14, 1946) June 1998 Director and General Manager of Automobile Industry Production Dept. II of Tokio Marine July 1998 Director and General Manager of Automobile Industry Production Dept. II, Tokyo Automobile Division of Tokio Marine June 1999 Director and General Manager of Corporate Planning Dept. of Tokio Marine April 2000 Managing Director and General Manager of Corporate Planning Dept. of Tokio Marine June 2000 Managing Director of Tokio Marine Sept. 2000 Director of Tokio Marine Dec. 2000 Retired from his position as Director of Tokio Marine June 2002 Managing Director of Tokio Marine — July 2002 Managing Director and General Manager of Public & Institutional Business Division of Tokio Marine June 2003 Senior Managing Director and General Manager of Public & Institutional Business Division of Tokio Marine Oct. 2004 Senior Managing Director of Tokio Marine & Nichido June 2005 Executive Vice President of Tokio Marine & Nichido June 2005 Director of Millea Holdings June 2006 Retired from his position as Executive Vice President of Tokio Marine & Nichido June 2006 President of Tokio Marine & Nichido Life (to present) July 2008 Director of Tokio Marine Holdings (to present) (Representation of other companies: President of Tokio Marine & Nichido Life) Director Hiroshi Miyajima April 1974 Joined Nisshin Fire 8,204 (May 4, 1950) June 2000 Director and General Manager, General Planning Dept. of Nisshin Fire April 2001 Director and General Manager, Personnel & General Affairs Dept. of Nisshin Fire April 2002 Director and General Manager, Personnel Dept. of Nisshin Fire April 2003 Managing Director and Deputy General Manager, Production Promotion Headquarters of Nisshin Fire June 2003 Senior Managing Director and Deputy General Manager, Production Promotion Headquarters of Nisshin Fire — April 2004 Senior Managing Director and General Manager, Production Promotion Headquarters of Nisshin Fire April 2005 President and General Manager, Marketing Promotion Headquarters of Nisshin Fire June 2006 Director of Millea Holdings April 2007 President of Nisshin Fire (to present) July 2008 Director of Tokio Marine Holdings (to present) (Representation of companies: President of Nisshin Fire) Director Tsuyoshi Nagano April 1975 Joined Tokio Marine 9,400 (November 9, 1952) June 2003 Director and General Manager of Nagoya Production Dept. III, Tokai Division of Tokio Marine Oct. 2004 Director and General Manager of Nagoya Dept. III, Tokai Division of Tokio Marine & Nichido — June 2006 Managing Director of Tokio Marine & Nichido June 2008 Managing Director and General Manager of Corporate Planning Dept. of Tokio Marine & Nichido (to present) June 2008 Director of Millea Holdings July 2008 Director of Tokio Marine Holdings (to present)

Corporate Auditors

(As of July 31, 2008) Name Number of Title (Date of birth) Biography Responsibilities shares held Standing Yasuo Yaoita May 1970 Joined Tokio Marine 25,235 Corporate (November 13, 1947) June 2000 Director and General Manager of Corporate Planning Dept. of Tokio Marine Auditor Oct. 2001 Director and General Manager, Corporate Planning Dept. of Tokio Marine April 2002 Retired from his position as Director of Tokio Marine April 2002 Managing Director and General Manager of Corporate Planning Dept. of Millea Holdings April 2003 Managing Director and General Manager of Merger Promotion Dept. of Millea Holdings — Oct.2004 Managing Director of Millea Holdings June 2005 Senior Managing Director of Millea Holdings June 2006 Standing Corporate Auditor of Tokio Marine & Nichido June 2006 Retired from his position as Senior Managing Director of Millea Holdings June 2007 Retired from his position as Standing Corporate Auditor of Tokio Marine & Nichido June 2007 Standing Corporate Auditor of Millea Holdings July 2008 Standing Corporate Auditor of Tokio Marine Holdings (to present) WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 111 Corporate Data

Corporate Auditors

(As of July 31, 2008) Name Number of Title (Date of birth) Biography Responsibilities shares held Standing Tetsuo Kamioka April 1967 Joined Nichido Fire 8,360 Corporate (September 3, 1948) June 2000 Director and General Manager of Marketing & Sales Promotion Dept. of Auditor Nichido Fire April 2001 Director and General Manager of Agency Dept. of Nichido Fire April 2002 Director and General Manager of Tokyo Production Dept. and General Manager of Tokyo of Tokyo Production Dept. (Tokyo Chuo Branch) of Nichido June 2002 Managing Director and General Manager of Tokyo Production Dept. and General Manager of Tokyo Production Dept. (Tokyo Chuo Branch) — of Nichido Fire March 2003 Retired from his position as Managing Director of Nichido Fire April 2003 President of Nichido Life Oct.2003 Senior Managing Director of Tokio Marine & Nichido Life June 2005 Retired from his position as Senior Managing Director of Tokio Marine & Nichido Life June 2005 Standing Corporate Auditor of Millea Holdings July 2008 Standing Corporate Auditor of Tokio Marine Holdings (to present) Corporate Shigemitsu Miki April 1958 Joined The Mitsubishi Bank, Ltd. — Auditor (April 4, 1935) June 1986 Director of The Mitsubishi Bank, Ltd. June 1989 Managing Director of The Mitsubishi Bank, Ltd. June 1994 Senior Managing Director of The Mitsubishi Bank, Ltd. April 1996 Senior Managing Director of The Bank of Tokyo-Mitsubishi, Ltd. May 1997 Executive Vice President of The Bank of Tokyo-Mitsubishi, Ltd. June 2000 President of The Bank of Tokyo-Mitsubishi, Ltd. June 2000 Corporate Auditor of Tokio Marine April 2001 President of Mitsubishi-Tokyo Financial Group April 2002 Retired from position as Corporate Auditor of Tokio Marine — April 2002 Corporate Auditor of Millea Holdings June 2004 Chairman of the Board of The Bank of Tokyo-Mitsubishi, Ltd. June 2004 Director of Mitsubishi-Tokyo Financial Group Oct. 2005 Director of Mitsubishi UFJ Financial Group Jan. 2006 Chairman of the Board of The Bank of Tokyo-Mitsubishi UFJ, Ltd. June 2006 Retired from position as Director of Mitsubishi UFJ Financial Group April 2008 Senior Corporate Advisor of The Bank of Tokyo-Mitsubishi UFJ, Ltd. (to present) July 2008 Corporate Auditor of Tokio Marine Holdings (outside corporate auditor) (to present) Corporate Hiroshi Fukuda April 1960 Joined Ministry of Foreign Affairs of Japan — Auditor (August 2, 1935) Jan.1989 Director-General of Treaties Bureau and Director-General of Office for the Law of the Sea, Ministry of Foreign Affairs Sept.1990 Ambassador to Malaysia Aug. 1993 Deputy Minister of Foreign Affairs, Ministry of Foreign Affairs Aug. 1995 Retired from Ministry of Foreign Affairs — Sept.1995 Justice of the Supreme Court of Japan Aug.2005 Retired Justice of the Supreme Court Aug.2005 Attorney-at-law (to present) June 2006 Corporate Auditor of Millea Holdings (outside corporate auditor) July 2008 Corporate Auditor of Tokio Marine Holdings (outside corporate auditor) (to present) Corporate Yuko Kawamoto April 1982 Joined The Bank of Tokyo, Ltd. — Auditor (May 31,1958) Sept.1988 Joined McKinsey & Company, Tokyo Office Apr.2004 Professor, Waseda Graduate School of Finance, Accounting and Law (to present) — June 2006 Corporate Auditor of Millea Holdings July 2008 Corporate Auditor of Tokio Marine Holdings (outside corporate auditor) (to present) Notes: 1. Messrs. Minoru Makihara, Masamitsu Sakurai and Dr. Haruo Shimada are outside directors as defined in the Article 2, paragraph 15 of the Companies Act. 2. Messrs. Shigemitsu Miki, Hiroshi Fukuda and Ms. Yuko Kawamoto are outside corporate auditors as defined in Article 2, paragraph 16 of the Companies Act. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 112 Organizational Chart (As of July 1, 2008)

General Meeting Corporate Planning Department of Shareholders Matters relating to business strategies, business planning, coroprate ratings, corporate communications, IR, M&A, internal control and providing business management assistance and general administration of domestic insurance subsidiaries of the Tokio Marine Group

Corporate International Business Development Department Auditors Matters relating to planning and implementing strategies for overseas business and providing business management assistance and general administration of overseas subsidiaries of the Tokio Marine Group

Nomination Board of Committee Financial Planning Department Auditors Matters relating to asset management, planning and implementing strategies for financial services business and providing business Compensation management assistance and general administration of subsidiaries operating financial services business of the Tokio Marine Group Committee Board of Corporate Accounting Department Directors Matters relating to financial reporting and taxes of Compliance the Tokio Marine Group Committee

Management Meeting Risk Management Business Development and Support Department Committee Matters relating to new business lines and providing business management assistance and general administration of business subsidiaries of the Tokio Marine Group

Directors Personnel Planning Department Matters relating to personnel strategies of the Tokio Marine Group

Legal Department Matters relating to general meeting of shareholders and board of directors

Compliance Department Matters relating to compliance and information security of the Tokio Marine Group

Risk Management Department Matters relating to integrated risk management of the Tokio Marine Group

Internal Audit Department Matters relating to internal audit of the Tokio Marine Group

Employees (As of March 31, 2008) Number of employees: 382 Average age of employees: 41.8 years old Average length of service of employees: 18.3 years Notes: 1. Most employees of the Company are seconded from Tokio Marine & Nichido Fire Insurance Co., Ltd. Average length of service includes the years of service in Tokio Marine & Nichido (including years of services in The Nichido Fire and Marine Insurance Company, Limited, if the employees seconded are originally from The Nichido Fire). 2. As for average age and average length of service of employees, numbers smaller than 0.1 are rounded down. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 113 Corporate Data

Tokio Marine Holdings and Its Subsidiaries (As of March 31, 2008)

Description of Business Tokio Marine Holdings, Inc. is an insurance holding company established in April 2002. The Tokio Marine Group is engaged in the non-life insurance and life insurance businesses and the following are the primary Group companies.

Business Diagram*

Non-life Insurance Business

Property and casualty insurance business

Tokio Marine & Nichido Fire Insurance Co., Ltd. Nisshin Fire & Marine Insurance Co., Ltd. Tokio Marine Global Ltd. Tokio Marine Europe Insurance Limited Kiln Reinsurance Ltd. Kiln Underwriting Limited TM Asia Insurance Singapore Ltd. Real Seguros S.A. Tokio Millennium Re Ltd. � Tianan Insurance Company Limited

Small-amount short-term insurance

Millea Nihon Kousei SS Insurance Co., Ltd. Millea Holdings, Inc. Asset management business Presently Vetra Finance Corporation Tokio Marine Holdings, Inc. Other

Kiln Ltd. Kiln (UK) Holdings Limited Tokio Marine Asia Pte. Ltd. Asia General Holdings Limited

Life Insurance Business

Tokio Marine & Nichido Life Insurance Co., Ltd. Tokio Marine & Nichido Financial Life Insurance Co., Ltd. Tokio Marine Bluebell Re Limited TM Asia Life Singapore Ltd. TM Asia Life Malaysia Bhd. � Sino Life Insurance Co., Ltd. � Real Tokio Marine Vida e Previdência S.A.

Other Business

Derivatives business

Tokio Marine Financial Solutions Ltd.

Consolidated subsidiaries � Equity-method affiliates WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 114 Major Subsidiaries

(As of March 31, 2008) Ratio of Tokio Ratio of Tokio Date of Marine Holdings’ Company name Paid-in capital Marine Holdings’ Location Major business incorporation subsidiaries’ voting rights (*1) voting rights (*2) Consolidated subsidiaries Tokio Marine & Nichido Fire Mar. 20, 1944 (Yen in millions) % % 2-1, Marunouchi 1-chome, Property and Insurance Co., Ltd. (*3) 101,994 100 0 Chiyoda-ku, Tokyo casualty insurance Nisshin Fire & Marine Insurance June 10, 1908 20,389 100 0 3, Kanda-Surugadai 2-chome, Property and Co., Ltd. Chiyoda-ku, Tokyo casualty insurance Tokio Marine & Nichido Life Aug. 6, 1996 55,000 100 0 3-16, Ginza 5-chome, Life insurance Insurance Co., Ltd. Chuo-ku, Tokyo Tokio Marine & Nichido Financial Aug. 13, 1996 48,000 100 0 1-1, Osaki 2-chome, Life insurance Life Insurance Co., Ltd. Shinagawa-ku, Tokyo Millea Nihon Kousei SS Insurance Sept. 1, 2003 1,000 85.2 0 2-1-1, Minatomirai 2-chome, Property and Co., Ltd. Nishi-ku, Yokohama, Kanagawa Pref. casualty insurance Tokio Marine Global Ltd. Oct. 30, 1990 £ 0 100 2 Minister Court, London EC3R Property and 125,000,000 7BB, UK casualty insurance Tokio Marine Europe Insurance Sept. 15, 1970 £ 0 100 150 Leadenhall Street, London Property and Limited 35,000,000 EC3V 4TE, UK casualty insurance Kiln Ltd Mar. 10, 2008 £ 0 100 22 Victoria Street, Hamilton, Property and 699,226.83 HM 12, Bermuda casualty insurance Kiln (UK) Holdings Limited £ 0 100 106 Fenchurch Street, London, Property and July 11, 1994 1,000,000 EC3M 5NR, UK casualty insurance Kiln Reinsurance Ltd. Feb. 21, 2007 £ Clarendon House, 2 Church St., Property and 0 100 70,000 Hamilton, HM11, Bermuda casualty insurance Kiln Underwriting Limited June 13, 1994 £ 0 100 106 Fenchurch Street, London, Property and 2 EC3M 5NR, UK casualty insurance Tokio Marine Bluebell Re Limited Mar. 8, 2007 (Yen in millions) 90.1 0 15-19 Athol Street, Douglas, Life insurance 14,000 Isle of Man, IM1 1LB Tokio Marine Asia Pte. Ltd. Mar. 12, 1992 S$ 100 0 80 Anson Road, Fuji Xerox Property and 561,714,302 Towers, Singapore 079907 casualty insurance THB 542,000,000 Asia General Holdings Limited Feb. 24, 1971 S$ 0 92.4 80 Anson Road, Fuji Xerox Property and 75,000,000 Towers, Singapore 079907 casualty insurance TM Asia Insurance Singapore Ltd. July 11, 1923 S$ 0 100 80 Anson Road, Fuji Xerox Property and 100,000,000 Towers, Singapore 079907 casualty insurance TM Asia Life Singapore Ltd. May 21, 1948 RM 0 85.2 80 Anson Road, Fuji Xerox Life insurance 36,000,000 Towers, Singapore 079907 TM Asia Life Malaysia Bhd. Feb. 11, 1998 RM 0 100 Level 7, Menara TM Asia Life 189, Life insurance 100,000,000 Jalan Tun Razak, 50400 Kuala Lumpur, Malaysia Real Seguros S.A. May 31, 1973 R. 100 0 R. Sampaio Viana, 44 CEP:04004- Property and 225,617,304 000 São Paulo, SP, Brazil casualty insurance Tokio Millennium Re Ltd. US$ 0 100 Tokio Millennium House, Property and Mar. 15, 2000 250,000,000 3 Waterloo Lane Pembroke HM 08 casualty insurance Tokio Marine Financial Solutions Ltd. Dec. 4, 1997 (Yen in millions) 0 100 The Offices of Maples and Calder Other business 500 Ugland House P.O. Box 309 South (Derivatives Church St. George Town Grand business) Cayman Islands, British West Indies Vetra Finance Corporation June 16, 2006 US$ — — P.O. Box 309 GT, Ugland House, Property and 1,000 South Church Street George Town, casualty business Grand Cayman. Cayman Islands (Investments in bonds) (and 32 other companies)

Affiliates accounted for by the equity method Sino Life Insurance Co., Ltd. Mar. 4, 2002 Yuan 0 24.9 37th Floor, Sino Life Tower, Life insurance 1,358,189,081 707 Zhangyang Road, Pudong, Shanghai 200120 P.R. China Tianan Insurance Company Limited Oct. 22, 1994 Yuan 0 24.9 18th Floor, 1 Pudong Avenue, Property and 667,776,298 Pudong New Area, Shanghai, casualty insurance 200120, China Real Tokio Marine Vida e Nov. 1, 2001 R. 0 50 R. Sampaio Viana, 44 CEP: 04004- Life insurance Previdência S.A. 78,946,875 000 São Paulo, SP, Brazil (and 7 other companies) (*1) The ratio of voting rights of said subsidiaries held by Tokio Marine Holdings to total voting rights (*2) The ratio of voting rights of said subsidiaries held by Tokio Marine Holdings’ subsidiaries to total voting rights (*3) Founded on August 1, 1879 WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 115 Corporate Data

Facilities

Overview of Capital Investment Tokio Marine & Nichido Fire Insurance Co., Ltd., a wholly owned subsidiary of Tokio Marine Holdings, made a major capital investment of ¥2 billion to renovate domestic branch buildings for the purpose of improving customer services and streamlining workflows in its nonlife insurance business.

Status of Major Facilities Following are the major facilities of Tokio Marine Holdings and its consolidated subsidiaries.

(1) Tokio Marine Holdings

(As of March 31, 2008)

(2) Domestic subsidiaries

(As of March 31, 2008)

Number of Carrying amount (Yen in millions) Rent Office name Number of Company name sections and Business segment Land (Yen in (Location) Buildings Movables employees local branches (m2) millions) Tokio Marine & Nichido Head office 54 Property and 21,330 33,306 12,452 3,810 2,139 Fire Insurance Co., Ltd. including each Service Dept., casualty (78,164) Tokyo Corporate Division, Tokyo insurance Automobile Division, Commercial Lines Claims Dept., Claims Service Dept., Tokyo Automobile Claims Service Dept., Marketing Promotion Dept. (Governmental), Government Section Dept.1&2, Health Care & Welfare Sector Dept., Group Account Marketing Dept. and Financial Institutions Dept. (Chiyoda-ku, Tokyo) Hokkaido 23 Property and 1,879 2,096 391 576 85 Hokkaido Branch (Chuo-ku, casualty (9,995) Sapporo) and other 3 branches insurance Tohoku 35 Property and 1,930 625 852 218 2,428 Sendai Branch (Aoba-ku, Sendai) casualty (10,649) and other 5 Branches insurance Kanto 111 Property and 8,135 10,265 2,010 3,427 2,760 Tokyo Chuo Branch (Chiyoda-ku) casualty (18,540) and other 18 Branches insurance Tokai/Hokuriku 61 Property and 4,469 4,125 1,224 2,041 712 Aichi Minami Branch (Naka-ku, casualty (15,925) Nagoya) and other 9 Branches insurance Kansai 42 Property and 16,774 9,086 1,387 2,021 844 Osaka Chuo Branch (Chuo-ku, casualty (87,518) Osaka) and other 9 Branches insurance Chugoku/Shikoku 35 Property and 3,810 3,571 766 1,130 369 Hiroshima Chuo Branch (Naka-ku, casualty (9,820) Hiroshima) and other 8 Branches insurance Kyushu Fukuoka Branch Property and 3,695 5,873 907 1,406 363 (Hakata-ku,Fukuoka) and 39 casualty (42,832) other 9 Branches insurance WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 116 Number of Carrying amount (Yen in millions) Rent Office name Number of Company name sections and Business segment Land (Yen in (Location) Buildings Movables employees local branches (m2) millions) Nisshin Fire & Marine Head office (Tokyo Headquarters) 19 Property and 12,021 5,600 189 774 155 Insurance Co., Ltd. including Tokyo Production casualty (5,355) Department 1&2, Nishi-Tokyo insurance Production Department and Higashi-Kanto Production Department (Chiyoda-ku, Tokyo) Saitama Headquarters 8 Property and 3,091 1,688 306 275 28 including Saitama Production casualty (9,015) Department, and Kita-Kanto insurance Production Department (Urawa-ku, Saitama) Others 128 Property and 2,767 3,583 673 1,696 620 Kanagawa Production casualty (13,030) Department, Nagano Production insurance Department, Niigata Production Department, Hokkaido Business Control Department, Tohoku Business Control Headquarters, Shizuoka Business Control Department, Tokai Business Control Headquarters, Hokuriku Business Control Department, Nishi Nihon Business Control Headquarters, Kyushu Business Control Office Tokio Marine & Nichido Head Office 75 Life insurance — 291 426 1,918 1,270 Life Insurance Co., Ltd. (Chuo-ku, Tokyo) (—) Tokio Marine & Nichido Head Office — Life insurance — 245 162 224 309 Financial Life Insurance (Shinagawa-ku, Tokyo) (—) Co., Ltd. Millea Nihon Kousei SS Head Office 5 Property and — 24 28 70 — Insurance Co., Ltd. (Nishi-ku, Yokohama) casualty (—) insurance

(3) Overseas subsidiaries

(As of March 31, 2008)

Number of Carrying amount (Yen in millions) Rent Office name Number of Company name sections and Business segment Land (Yen in (Location) Buildings Movables employees local branches (m2) millions) Tokio Marine Global Ltd. Head office — Property and — 170 28 26 — (London, U.K.) casualty (—) insurance Tokio Marine Europe Head office 8 Property and — — 116 158 228 Insurance Limited (London, U.K.) casualty (—) insurance Kiln Ltd and Head office — Property and — 73 221 251 — other 23 companies (Hamilton, Bermuda) casualty (—) insurance Tokio Marine Bluebell Re Head office — Life insurance — — 1 — — Limited (Douglas, Isle of Man) (—) Tokio Marine Asia Pte. Head Office — Property and — — 35 44 46 Ltd. (Singapore, Singapore) casualty (605) insurance Asia General Holdings Head Office — Property and — — — — — Limited (Singapore, Singapore) casualty (—) insurance WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 117 Corporate Data

Number of Carrying amount (Yen in millions) Rent Office name Number of Company name sections and Business segment Land (Yen in (Location) Buildings Movables employees local branches (m2) millions) TM Asia Insurance Head Office 1 Property and — — 45 132 63 Singapore Ltd. (Singapore, Singapore) casualty (—) insurance TM Asia Life Singapore Head Office 1 Life insurance — — 82 136 53 Ltd. (Singapore, Singapore) (—) TM Asia Life Malaysia Head office 15 Life insurance 285 784 131 273 2 Bhd. (Kuala Lumpur, Malaysia) (13,917) [39,722] Real Seguros S.A. Head office 49 Property and 0 259 728 964 407 (São Paulo, Brazil) casualty — insurance [24,510] Head office Property and — 344 236 30 113 Tokio Millennium Re Ltd. — (Hamilton, Bermuda) casualty (—) insurance Tokio Marine Financial Tokyo branch — Other business — 70 82 60 118 Solutions Ltd. (Chiyoda-ku, Tokyo) (—) Vetra Finance Head office — Property and — — — — — Corporation (Georgetown, Cayman Islands) casualty (—) insurance Notes: 1. The number of sections and local branches is the total of sections, local branches and overseas representative offices which belong to the Office named in the second column. Overseas branches and overseas representative offices are included in the Head Office. 2. All of the above facilities are for business use. 3. A portion of land and building is being leased. Leased land space is contained in [ ] brackets. 4. In addition to the above, main leased facilities are as follows:

Carrying amount (Yen in millions) Company name Facility name Land (m2) Buildings Tokio Marine & Nichido Fire Insurance Osaka Tokyo Kaijo Nichido Building 4,328 3,628 Co., Ltd. (Chuo-ku, Osaka) (5,885) Tokyo Kaijo Nichido Building Shinkan 0 2,409 (Chiyoda-ku, Tokyo) (2,656) Nagoya Tokyo Kaijo Nichido Building 1,170 46 (Naka-ku, Nagoya) (2,563) S-INO OMIYA South Wing 3,936 5,675 (Omiya-ku, Saitama) (2,745) Tama Tokyo Kaijo Nichido Building 6,449 4,364 (Tama-shi, Tokyo) (5,760) Nisshin Fire & Marine Insurance Nagoya Building 1 422 Co., Ltd. (Naka-ku, Nagoya) (337) Musashino Building 119 247 (Musashino-shi, Tokyo) (1,090) WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 118 5. In addition to the above, main company-owned housings and facilities for employee’s fringe benefits are as follows:

Carrying amount (Yen in millions) Company name Facility name Land (m2) Buildings Tokio Marine & Nichido Fire Insurance Marine Heights Fujimidai 191 899 Co., Ltd. (Nakano-ku, Tokyo) (18,593) Marine Heights Nishinomiya 7 800 (Nishinomiya-shi, Hyogo Pref.) (3,047) Shakujii Ground 3,076 144 (Nerima-ku, Tokyo) (14,860) Tama Sogo Ground 6,705 1,026 (Hachioji-shi, Tokyo) (53,000) Tokyo Kaijo Nichido Tanashi dormitory 1 291 (Nishitokyo-shi, Tokyo) (1,564) Nisshin Fire & Marine Insurance Talk Heim Nisshin 804 609 Co., Ltd. (Kita-ku, Saitama) (3,536)

6. In addition to the above, our major equipment leased is as follows:

Company name Equipment description Annual lease fee (Yen in millions) Tokio Marine & Nichido Fire Insurance Co., Ltd. Computers 1,177 Tokio Marine & Nichido Life Insurance Co., Ltd. Computers 174

New Facility Construction and Elimination Schedule As of March 31, 2008, the schedule for the construction and elimination of new facilities was as follows.

(1) New facilities

Scheduled investment Start and completion schedule Company name Amount already Financing Location Business segment Description Total Facility name paid method Start Completion (Yen in millions) (Yen in millions) Tokio Marine & Nichido Fire Minato-ku, Tokyo Property and New 1,651 417 Self-financing June 2007 Aug. 2008 Insurance Co., Ltd. Minami casualty construction Azabu Mansion insurance Tokio Marine & Nichido Fire Chiyoda-ku, Tokyo Property and New 13,838 1,988 Self-financing Sept. 2007 Aug. 2009 Insurance Co., Ltd. casualty construction Sanbancho Tokyo Kaijo insurance Nichido Building Note: Based on a change of the criteria of materiality in relation to the facility construction and elimination schedule, projects with investment capital of ¥500 million or more are on the list.

(2) Renovation

Scheduled investment Start and completion schedule

Financing Company name Location Business segment Description Amount already method Facility name Total paid Start Completion (Yen in millions) (Yen in millions) TM Asia Insurance Singapore 20 McCallum St Property and Renovation 6,564 — Self-financing May 2008 May 2011 Ltd. Asia Chambers casualty and loan insurance Note: Based on a change of the criteria of materiality in relation to the new facility construction and elimination schedule, projects with investment capital of ¥500 million or more are on the list

(3) Disposal by sale

Company name Book value at end of period Location Business segment Description Sale price Date of sale Facility name (Yen in millions) Tokio Marine & Nichido Fire Nishinomiya-shi, Property and Disposal 401 1,818 Apr. 2008 Insurance Co., Ltd. Hyogo Pref. casualty by sale Nishinomiya Kurakuenguchi insurance dormitory Notes: 1. Based on a change of the criteria of materiality in relation to the new facility construction and elimination schedule, projects with investment capital of ¥500 million or more are on the list. 2. Sale of the Nishinomiya Kurakuenguchi dormitory of Tokio Marine & Nichido Fire Insurance Co., Ltd. was completed in April 2008. WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 119 Corporate Data

History of the Tokio Marine Group

2001 January Tokio Marine and Nichido Fire Insurance agree to establish a joint holding company September Announces holding company name, business purpose, representative, location of head office, stock transfer ratio, etc. 2002 April Lists shares of Millea Holdings, Inc. on the Tokyo Stock Exchange and the Osaka Securities Exchange (opening price: ¥970,000), and lists American Depositary Receipt (ADR) on NASDAQ. Establishes Millea Holdings, Inc. Holds its opening ceremony. November Announces medium- to long-term Group strategy December Establishes Millea Asia Pte. Ltd. Tokio Marine Group takes 30% stake in Taiwanese nonlife insurance company Newa Insurance Co., Ltd. via Millea Asia Pte. Ltd. 2003 February Establishes Millea Real-Estate-Risk Management, Inc. July Launches Tokio Marine & Nichido Career Service Co., Ltd. October Launches Tokio Marine & Nichido Life Insurance Co., Ltd. November Revises Millea Group’s medium- to long-term strategy Sino Life Insurance Co., Ltd., (owned 24.9% by the Millea Group) commences operation in Shanghai 2004 February Acquires all outstanding shares of Scandia Life Insurance Co., Ltd. via Tokio Marine (becomes a direct subsidiary of Millea Holdings in April 2004, changing that company’s name to Tokio Marine & Nichido Financial Life Insurance Co., Ltd.) September Purchases 99.81% of the stock of Taiwanese non-life insurance company Allianz President General Insurance Co., Ltd. via Millea Asia 2005 April The two general insurance companies in Taiwan under the umbrella of Millea Asia merge and become Tokio Marine Newa Insurance Co., Ltd. May Establishes Corporate governance policy July Tokio Marine takes a 100% and 50% stake in Brazilian nonlife insurance company Real Seguros S.A. and life insurance and annuity company Real Vida e Previdência S.A., respectively. October Makes Tokio Marine & Nichido Facilities, Inc. its subsidiary November Formulates Group’s long-term strategy and new medium-term plan “Stage Expansion 2008” 2006 January Establishes Millea Mondial Co., Ltd. and enters the assistance and Business Process Outsourcing (BPO) businesses February Establishes Tokio Marine Nichido Samuel Co., Ltd. and enters the retirement home and nursing care business. September Merges with Nisshin Fire & Marine Insurance Co., Ltd., which becomes a wholly owned subsidiary October Tokio Marine & Nichido Career Service Co., Ltd. invests in Classy Co., Ltd. and enters the homemaker service industry 2007 February Makes Tokio Marine & Nichido Medical Service Co., Ltd. its subsidiary April Makes Tokio Marine & Nichido Insurance Service Co., Ltd. its subsidiary and changes the name to Tokio Marine & Nichido Anshin Consulting Co., Ltd. Establishes Tokio Marine Blubell Re Limited on U.K.-governed Isle of Man October Makes Tokio Marine & Nichido Risk Consulting Co., Ltd. its subsidiary 2008 January Makes Nihon Kousei Kyousaikai its subsidiary and changes the name to Millea Nihon Kosei SS Insurance Co., Ltd. July Changes the corporate name to Tokio Marine Holdings, Inc.

Meiji Fire Insurance Japan’s first stock Millea Holdings, Inc. Tokio Marine Holdings, Inc. 1891 insurance holding company 2002 2008 (change of corporate name)

Tokio Marine Insurance Tokio Marine Insurance Tokio Marine Insurance 1879 1918 1944 Tokio Marine & Nichido Fire Insurance Mitsubishi Marine and Tokio Marine Life 2004 Japan’s first insurance Fire Insurance Insurance company run by Japanese 1919 1996 Tokio Marine & Nichido Life Insurance Nichido Life Insurance 2003 1996

Tokyo Article Fire Nihon Dosan Nichido Fire Insurance Insurance Fire Insurance 1946 1898 1914

Toho Fire Insurance Tokio Marine & Nichido 1911 Financial Life Insurance 2004

Teikoku Hansen Toyo Marine Insurance Nisshin Fire & Marine Marine Insurance 1910 Insurance 1908 1943 Toumei Marine Insurance 1907

Toyokuni Fire Insurance 1912

Fukuju Fire Insurance 1911 WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836 120 Kunio Ishihara Chairman Shuzo Sumi President

TokioMarineH_08AR表紙0920.indd 2 08.9.26 5:39:58 PM Tokio Marine Holdings, Inc. Holdings, Marine Tokio

Annual Report 2008 Annual Report 2008 Report Annual

http://www.tokiomarinehd.com/

tion of forests, which benefit the public in such numerous ways as by absorbing CO2.

Printed in Japan

Member of Financial Accounting Standards Foundation WorldReginfo - b2f92b7f-c93a-43ff-9e40-23504b4f6836

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