NKSJ Holdings ANNUAL REPORT

ANNUAL REPORT 2012

26-1, Nishi-Shinjuku 1-chome, Shinjuku-ku, Tokyo, 160-8338, Japan ANNUAL REPORT http://www.nksj-hd.com/ 2012

(99NH5136) 202466 Ver3.00 NK:E7-19-0187 Printed in Japan Preface

NKSJ Holdings, Inc. is the joint holding company formed between Sompo Japan Insurance Inc. (Sompo Japan) and NIPPONKOA Insurance Company, Limited (Nipponkoa) in April 2010. Underpinned by our Group Management Philosophy, all executives and employees of the NKSJ Group shall take actions consistent with the Group Action Guidelines to provide customers with the highest quality of service. We will enhance our corpo- Masaya Futamiya Kengo Sakurada rate value, aiming to establish our position among customers as Representative Director, Representative Director, Chairman and President and the most highly evaluated service company. Executive Ofﬁ cer Executive Ofﬁ cer

Group Management Philosophy The NKSJ Group will contribute to society by extending the highest quality of service across a wide range of business activities building on its core business of insurance to provide security and peace of mind to its customers, always carefully considering the customer’s perspective in our business actions.

Group Action Guidelines To provide the highest quality of customer service, we commit ourselves to: 1. listening closely to our customers, aware that each employee represents the entire NKSJ Group; 2. always setting ambitious goals thinking for ourselves and continuously learning; 3. emphasizing speed, simplicity, and clarity; and, 4. acting with integrity and high ethical standards.

Group Vision As part of our effort to build a globally competitive organization, we aim to establish our position among customers as the most highly evaluated service company. Contents

Consolidated Financial Highlights 1 Financial Section 35 About the NKSJ Group 2 Financial Review 36 Message from the Management 10 Report of Independent Auditors 47 Interview with the President 12 Consolidated Financial Statements 48 Review of Operations 18 Balance Sheets and Statements of Overseas 18 Income of Principal Consolidated Subsidiaries (Unaudited) 96 Japan 20 Solvency Margin Ratio of NKSJ Holdings, Inc. on a Consolidated Basis (Unaudited) 117 Management Structure 22 Solvency Margin Ratios of Principal Consolidated Subsidiaries Corporate Governance, Internal Control and Compliance 22 (Unaudited) 119 Board of Directors, Ofﬁ cers and Auditors 25 Corporate Information 124 Risk Management, Capital Strategy and Overseas Network 124 Asset Management 26 Shares and Shareholders 129 Management Plan 28 Status of Shares Held 130 The NKSJ Group’s Approach to CSR 31 NKSJ Holdings, Subsidiaries and Afﬁ liates 132 Our Impact on Society 31 NKSJ History 133 Strategy on Global Environmental Issues— Risks and Opportunities 33 Corporate Data 134 Initiatives on Global Environmental Issues 34

Forward-looking Statements: This annual report contains certain forward-looking statements relating to future plans and targets, and related operating investments. We caution that there can be no assurance that such targets and plans can or will actually be achieved. Consolidated Financial Highlights NKSJ Holdings

Millions of Financial Highlights Millions of yen U.S. dollars Consolidated FY2011 FY2010 FY2011 Ordinary Income 2,790,555 2,621,689 33,673 Net Premiums Written (P&C Insurance) 1,973,777 1,933,283 23,817 Life Insurance Premiums 250,193 238,178 3,019

Ordinary Proﬁ t (Loss) (51,815) (6,437) (625) the NKSJ Group Net Income (Loss) (92,262) (12,918) (1,113) About Comprehensive Income (48,098) (143,120) (580) Total Assets 8,893,378 8,981,974 107,317 Total Net Assets 1,000,577 1,079,446 12,074 Net Income (Loss) per Share (yen, dollars) (222.30) (31.11) (2.68) the Management

Diluted Net Income per Share (yen, dollars) — — — Message from Equity Ratio 11.2% 12.0% 11.2% Consolidated Solvency Margin Ratio 549.8% — 549.8% 414,825,205 415,106,429 414,825,205 Number of Shares (Excluding treasury stock) shares shares shares the President Adjusted Consolidated Profi t (billions of yen) 1.2 80.7 15 Interview with Adjusted Consolidated ROE 0.1% 4.2% 0.1% Notes: 1. NKSJ Holdings, Inc. carried out a reverse split of stocks to combine common stocks at a ratio of four shares to one share on October 1, 2011. Number of shares, and Net income per share are calculated based on the assumption that the reverse split of stocks was executed at the beginning of the fi scal year ended March 31, 2011. 2. Diluted net income per share (yen) is not shown because there was a net loss. 3. Consolidated solvency margin ratio as the new standard of consolidated fi nancial soundness is calculated in accordance with the Ordinance for Enforcement of the Insurance Business Act revised on March 31, 2011 and such. 4. The calculation of Adjusted consolidated profi t and Adjusted consolidated ROE is explained in page 30. 5. U.S. dollar amounts are translated from yen at the rate of ¥82.87=U.S.$1.00, the approximate rate prevailing at March 31, 2012. Operations Review of Management Structure

Ordinary Income/ Ordinary Profit (Loss)/Net Income (Loss) Total Assets/Total Net Assets Net Premiums Written (P&C Insurance) Ordinary Income Ordinary Profit (Loss) Total Assets The NKSJ Group’s Net Premiums Written (P&C Insurance) Net Income (Loss) Total Net Assets Approach to CSR

(Billions of yen) (Billions of yen) (Billions of yen) 3,000 0 10,000 2,790.5 8,981.9 8,893.3 2,621.6 (6.4) (12.9) (20) 8,000 1,933.2 1,973.7 2,000 (40) 6,000 Financial Section

(51.8) (60) 4,000 1,000

(80) 2,000 1,079.4 1,000.5 (92.2) 0 (100) 0 Information

FY ’10 ’11 FY ’10 ’11 FY ’10 ’11 Corporate

NKSJ Holdings, Inc. 1 Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 2 “Overseas Insurance”andotherbusinesses. The NKSJGroup deploysvariousbusinesses:“DomesticP&CInsurance”asourcore business,“DomesticLifeInsurance,” ﬁ nancial foundationfollowingthebusinessintegration. pects, capitalizingonthehumanresources andstrengthened in overseasinsurancemarketswithpromising growth pros- We are pursuingbusinessexpansion,mainlythrough M&As, Automobile &Fire and Sonpo24selldirectly tocustomers. Nipponkoa marketthrough insuranceagencies,whileSaison customers’ peaceofmindandsafety. SompoJapanand provide high-quality products andservicesthatensure our This istheNKSJGroup’s core business,through whichwe Business DomainsandMajorGroup Companies About theNKSJGroup s3ONPO s3AISON!UTOMOBILE&IRE s.IPPONKOA s3OMPO*APAN s.IPPONKOAgS s3OMPO*APANgS NKSJ Holdings, Inc. /VERSEAS.ETWORKS /VERSEAS.ETWORKS OverseasInsurance DomesticP&CInsurance Domestic P&C Overseas Insurance Insurance sulting, healthcare, anddeﬁ ned-contribution pensionplans. insurance, includingassetmanagement,assistance,riskcon- we alsoprovide products andservicesinareas otherthan To helpcustomersaddress therisksand issuesthattheyface, exclusively indirect marketing. insurance agencies,whileSompoJapanDIYLifeengages NKSJ HimawariLifemarketsitsservicesmainlythrough P&C We are activelyengagedinthishigh-growth-potential area. OtherBusinesses DomesticLifeInsurance Domestic Life Businesses Insurance Other s$EFINED #ONTRIBUTION s(EALTHCARE s2ISK#ONSULTING s!SSISTANCE s!SSET-ANAGEMENT s3OMPO*APAN$)9,IFE s.+3*(IMAWARI,IFE 0ENSION0LANS Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

3 2 1 ’12 ’ 97.4 (Estimate)(Estimate) 11 ’11’ NKSJ Holdings, Inc. 68.0 (Actual)(Actual) ’11 615.3 10 ’10’ 64.3 (Actual)(Actual) ) 0 FYFY 1 ’10 ’11 ’ s of yen 0 0 0 0 0 0 0 101.4 n 345.6 80 60 40 20 100 (Billions of yen) Net Premiums Written ) FY 0 Sompo Japan Himawari Life (MCEV) Nipponkoa Life (TEV) NKSJ Himawari Life (MCEV) 200 700 600 500 400 300 100 Countries Growing adjusted embedded value (EV) backed with progress Growing adjusted embedded As of April 1, 2012 Countries (Billions of yen) EV Domestic Life Insurance High Growth (As of April 1, 2012)( ･ products on the shift to protection Countries 2828 21 in

Nipponkoa: Sompo Japan: Cities Cities in Cities in 77 172172 2011 billion % % NKSJ 6,819.2 27.9 MS&AD 34.7 % Countries FY2010

Others % 9.9 29 in joint venture with the European Bank for Reconstruction and Development with the European joint venture (Dec. 2010). Sompo Japan Insurance (China) Co., Ltd. opened the Jiangsu Branch. Sompo Japan Insurance (China) Co., Ltd. opened the Beijing Branch. preliminary NIPPONKOA Insurance Company (China) Limited received to establish the Shandong Branch. approval to cial approval ofﬁ Sompo Japan Reinsurance Company Limited received start business. Raised investment stake in Berjaya Sompo Insurance Berhad, and made it ¥13.3 billion) subsidiary (approx. ¥0.6 billion) made it subsidiary (approx. Limited.

27.5 Statistics of Japanese Non-Life Insurance, Tokio Marine Written NKSJ Group:

Cities in Jan. 2012 2012 Mar. Jun. 2011 Source: Domestic P&C Market: ¥ ms 209 Country Date Event Singapore 2010 May. Turkey ¥6.4 billion Insurance Company Limited for approx. Tenet Acquired 2010 Nov. to ¥27.4 billion. Transition Fiba Sigorta Anonim Sirketi for approx. Acquired BrazilChina Jul. 2009 Jul. 2010 S.A. ¥15.5 billion) in Maritima Seguros 50% stake (investment: approx. Took Malaysia Aug. 2010 Indonesia Jan. 2011 Asuransi Permata Nipponkoa Indonesia, and Thailand Raised investment stake in PT. Dec. 2010Netherlands Company Formed a business alliance with The Deves Insurance Public Oct. 2011 underwriting agency Nateus Nederland B.V., Acquired An Earnings Pillar to Drive Sustainable Growth An Earnings Pillar to Drive Sustainable and profitability in markets with high potential for growth –Expanding profit Overseas Insurance Major Recent Developments Realizing Group synergies and strengthening domestic Realizing Group synergies competitiveness through increasing premium Enhancing earning capacity management Domestic P&C Insurance Domestic P&C High Market Presence Net Premiums Written in FY2010 Net Premiums Written ･･ and reinforcing asset income, reducing expenses Characteristics of Each Business Domain Business of Each Characteristics Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 4 696,037 1.6% 420,671 12,124 820,181 6.0% 394,687 615,721 2.07% 42,774 20,541 2.21% 377,788 1,074,490 (8.8)% (73,943) 50,318 2.68% 748.6% (1.36)% 387,918 2.28% 9.03% 3.5% 44,667 (153,884) (0.29)% 800.0% 2.49% 73,316 (11.66)% (8.70)% 4.15% 3.U.S.dollaramountsare translatedfrom yenattherateof¥82.87=U.S.$1.00,approximate rateprevailing atMarch 31,2 106.2% 624.7% 79,858 86,463 3.25% (60,367) 107.9% 887.9% 33.7% 4,221,756 105,749 72.5% 2. 91,009 (9,716) (77,706) 385,039 Notes: 1. ROEiscalculatedasnetincome/totalassets(averageoftotalsatthestartandendfi 104.9% scal year). 4,458,771 (11,764) 34.1% Catastrophic LossReserve 4,221,207 102,511 (99,801) (578,808) 1,069,884 73.9% Total (2,585) NetAssets 98.0% 5,000,282 817,961 Non-Consolidated SolvencyMarginRatio 423,365 171,596 1,177,782 (494,634) 34.5% 135,606 (62,665) onEquity(ROE) Return 70.3% (92,274) 1,247,295 855,048 428,728 Net Income(Loss) 1,305,213 26,899 32.9% Ordinary Profi t (Loss) (42,578) 65.1% 832,768 445,389 MTM Investment Profi 1,256,639 t (Mark-to-MarketBasis) Yield 804,131 442,412 Realized Yield 1,258,896 Investment Profi t (RealizedBasis) 1,290,464 Income Yield Interest andDividendIncome 1,345,024 Assets inSaving-Type Account Investment Assets Combined Ratio Underwriting Profi t (Loss) Underwriting Balance Net ExpenseRatio Underwriting Expenses Net LossRatio Net LossesPaid Net Premiums Written (Billions ofyen) Net PremiumsWritten Net LossesPaid/NetLossRatio 1,200 1,500 1,200 1,600 (Billions ofyen) Non-Consolidated IndicatorsforSompoJapan 300 600 900 400 800 FY FY NKSJ Holdings, Inc. Net LossesPaidLossRatio 0 0 The non-consolidatedsolvencymarginratiospriortoFY2011are basedonthestandards before refl ection oftherevisions. Services Agency(2010),CabinetOffi ce Ordinance No.18(2012)andPublicNotice33oftheFinancialServicesAgency The non-consolidatedsolvencymarginratioofFY2011iscalculatedinaccordance withtherevisions ofCabinetOffi ce Ordinance 1,345.0 65.1% 804.1 0 0 0 1 ’11 ’10 ’09 ’08 ’07 0 0 0 1 ’11 ’10 ’09 ’08 ’07 1,290.4 70.3% 832.7 1,258.8 73.9% 855.0 1,256.6 72.5% 817.9 1,281.1 Y07F20 Y09FY2010 FY2009 FY2008 FY2007 80.6% 939.5 (%) 40 50 60 70 80 Breakdown ofNetPremiumsWritten (Billions ofyen,%) Underwriting Expenses/NetExpenseRatio (Billions ofyen) 200 400 600 800 FY Underwriting ExpensesNetExpenseRatio 0 13.9% 178.1 Millions ofyen 32.9% 442.4 0 0 0 1 ’11 ’10 ’09 ’08 ’07 12.0% 153.7 50.4% 645.3 34.5% 11.6% 149.0 445.3 012. 10.2% 130.1 No.23(2010),PublicNotice48oftheFinancial effective onMarch 31,2012. 1.9% 24.6 34.1% 428.7 (.) (5.9)% (5.9)% 1.59% 1.59% 1,004,327 12,119 3,947,664 47,636 1,281,155 15,459 (FY2011) 1423 (2,103) (174,293) Y01FY2011 FY2011 383,247 4,624 578,607 6,982 423,376 5,108 939,541 11,337 502.5% 113.6% 3,1)(452) (37,518) (301) (24,994) 65,188 786 67,874 819 78,375 945 .6 1.86% 1.86% 2.13% 33.0% 80.6% 3,964 47 Others Compulsory AutomobileLiability Voluntary Automobile Personal Accident Marine Fire andAlliedLines 33.7% 423.3 33.0% U.S. dollars 423.3 Millions of (%) 20 24 28 32 36 Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

0 5 (%) 4.0 3.0 2.0 1.0 (37.5) 1,004.3 78.3 2.13% 502.5% 3.9 3,947.6 NKSJ Holdings, Inc. 12.1 1,069.8 86.4 2.21% 748.6% 20.5 4,221.7 42.7 1,177.7 91.0 2.28% 800.0% 50.3 4,458.7 (73.9) 1,247.2 102.5 2.49% 624.7% 4,221.2 (153.8) 44.6 1,305.2 ’07 ’08 ’09 ’10 ’11 ’07 ’08 ’09 ’10 ’11 ’07 ’08 ’09 ’10 ’11 135.6 3.25% 887.9% 73.3 5,000.2 0 0 0 0 Interest and Dividend Income Income Yield 80 50 (%) FY FY FY FY (80) 200 150 100 Ordinary Profit (Loss) Net Income (Loss) Investment Assets Assets in Saving-Type Account Investment Assets Assets 300 900 600 (160) (Billions of yen) (Billions of yen) (Billions of yen) 6,000 4,000 2,000 1,200 Interest and Dividend Income/Income Yield Non-Consolidated Solvency Margin Ratio Ordinary Profit (Loss)/Net Income (Loss) Investment Assets/Assets in Saving-Type Account Assets/Assets in Saving-Type Investment Note) the end of FY2011, the calculation of the solvency margin ratio was revised. From 5 0 (5) 10 80 90 70 (%) (%) (10) (15) 120 110 100 65.1 (24.9) 1.59% (5.9%) 113.6% (174.2) 67.8 (9.7) (60.3) Government Bonds, Municipal Bonds, Corporate Bonds Domestic Stocks Foreign Securities Other Securities Loans Land and Buildings Others* 1.6% 106.2% * Total of deposits, call loans, receivables bought under resale agreements, monetary receivables bought, money trusts 79.8 (77.7) (1.36%) (2.5) (FY2011) 385.0 6.0% 107.9% 105.7 (99.8) 9.03% (578.8) 33.2% (92.2) 1,311.3 (8.8%) (11.7) (62.6) 983.8 24.9% (11.66%) 104.9% 6.1% 239.4 (42.5) (494.6) ’07 ’08 ’09 ’10 ’11 ’07 ’08 ’09 ’10 ’11 ’07 ’08 ’09 ’10 ’11 ’07 ’08 ’09 ’10 ’11 3.5% 422.1 775.5 26.8 10.7% 171.5 19.6% 98.0% (8.70%) 4.6% 181.5 0 0 5 0 50 (5) 10 FY FY (%) (50) FY 400 200 100 (10) (15) Investment Profit (Realized Basis) MTM Yield Investment Profit (Mark-to-Market Basis) Underwriting Balance Underwriting Profit (Loss) Combined Ratio Underwriting Balance (600) (200) (400) (100) (200) 33.7 (Billions of yen, %) (Billions of yen) (Billions of yen) 0.9% Return on Equity (ROE) Breakdown of Investment Assets Investment Profit (Realized Basis)/ Yield Investment Profit (Mark-to-Market Basis)/MTM Underwriting Balance/Underwriting Profit (Loss)/Combined Ratio Profit (Loss)/Combined Balance/Underwriting Underwriting Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights (Billions ofyen) Net PremiumsWritten Net LossesPaid/NetLossRatio (Billions ofyen) 6 365,539 (1.6)% (6,437) 433,642 240,067 (319) 3.4% 347,329 13,123 234,593 2.40% 2.08% 537,131 2.3% 229,598 10,111 29,384 2.47% (0.76)% 642.9% 224,225 2.06% 7.55% (2,851) 7,877 1.2% 0.85% 742.5% 2.19% (9.76)% 16,769 (7.30)% 2.59% 49,100 3.U.S.dollaramountsare translatedfrom yenattherateof¥82.87=U.S.$1.00,approximate rateprevailing atMarch 31,2 711.9% 42,722 105.3% 2.19% (17,688) 53,358 905.6% 105.2% 35.8% 44,999 2,202,069 (24,991) 69.6% 2. (33,134) 173,995 744,194 Notes: 1. ROEiscalculatedasnetincome/totalassets(averageoftotalsatthestartandendfi scal year). 2,367,667 19,850 101.8% 35.8% 51,124 Catastrophic LossReserve 2,293 2,412,896 (33,126) (271,343) 69.4% Total 813,343 NetAssets 100.3% 62,992 2,818,984 397,444 Non-Consolidated SolvencyMarginRatio 221,935 53,009 (231,964) 35.1% (11,799) 5,445 898,704 onEquity(ROE) Return 66.7% 403,857 226,792 Net Income(Loss) 620,615 (2,268) 1,012,658 34.9% Ordinary Profi t (Loss) (14,042) 65.4% 400,790 229,096 MTM 633,336 Investment Profi t (Mark-to-MarketBasis) Yield 414,298 240,491 Realized Yield 653,400 Investment Profi t (RealizedBasis) Income Yield 688,892 Interest andDividendIncome Assets inSaving-Type Account Investment Assets Combined Ratio Underwriting Profi t (Loss) Underwriting Balance Net ExpenseRatio Underwriting Expenses Net LossRatio Net LossesPaid Net Premiums Written 200 400 600 800 200 400 600 800 FY FY Non-Consolidated IndicatorsforNipponkoa Net LossesPaidLossRatio 0 0 NKSJ Holdings, Inc. The non-consolidatedsolvencymarginratiospriortoFY2011are basedonthestandards before refl ection oftherevisions. Services Agency(2010),CabinetOffi ce Ordinance No.18(2012)andPublicNotice33oftheFinancialServicesAgency The non-consolidatedsolvencymarginratioofFY2011iscalculatedinaccordance withtherevisions ofCabinetOffi ce Ordinance 65.4% 414.2 688.8 0 0 0 1 ’11 ’10 ’09 ’08 ’07 ’11 ’10 ’09 ’08 ’07 66.7% 653.4 400.7 94 69.6% 69.4% 0. 397.4 403.8 633.3 620.6 84.7% 630.6 493.0 Y07F20 Y09FY2010 FY2009 FY2008 FY2007 100 (%) 25 50 75 0 Breakdown ofNetPremiumsWritten (Billions ofyen,%) Underwriting Expenses/NetExpenseRatio (Billions ofyen) 100 200 300 400 FY Underwriting ExpensesNetExpenseRatio 0 12.6% 79.5 34.9% Millions ofyen 240.4 0 0 0 1 ’11 ’10 ’09 ’08 ’07 12.5% 78.9 50.5% 318.2 14.3% 90.4 35.1% 229.0 012. 7.9% 49.5 No.23(2010),PublicNotice48oftheFinancial effective onMarch 31,2012. 35.8% 2.2% 226.7 13.7 (.) (6.5)% (6.5)% (FY2011) 2,086,194 25,174 1422 (1,498) (124,222) Y01FY2011 FY2011 202,953 2,449 329,580 3,977 692,183 8,352 220,691 2,663 493,011 5,949 630,605 7,609 470.8% 119.7% 2,8)(272) (22,584) (496) (41,118) 68,662 828 49,701 599 41,211 497 .9 2.59% 3.23% 2.59% 2.12% 35.0% 84.7% 777 (93) (7,737) Others Compulsory AutomobileLiability Voluntary Automobile Personal Accident Marine Fire andAlliedLines 35.8% 221.9 35.0% 220.6 U.S. dollars Millions of (%) 16 24 32 40 8 Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

0 7 (%) 3.0 2.0 1.0 (22.5) 692.1 41.2 2.12% 470.8% (7.7) 2,086.1 NKSJ Holdings, Inc. (6.4) 744.1 42.7 2.08% 642.9% (0.3) 2,202.0 13.1 813.3 44.9 2.06% 742.5% 29.3 2,367.6 10.1 898.7 51.1 2.19% 711.9% (2.8) 2,412.8 7.8 1,012.6 ’07 ’08 ’09 ’10 ’11 ’07 ’08 ’09 ’10 ’11 ’07 ’08 ’09 ’10 ’11 53.0 2.19% 905.6% 16.7 2,818.9 0 0 0 0 Interest and Dividend Income Income Yield 30 20 10 90 60 30 (%) FY FY FY FY (10) (20) (30) Ordinary Profit (Loss) Net Income (Loss) Investment Assets Assets in Saving-Type Account Investment Assets Assets 300 900 600 Note) In FY2011, the calculation of the solvency margin ratio was revised. (Billions of yen) (Billions of yen) (Billions of yen) 3,000 2,000 1,000 1,200 Interest and Dividend Income/Income Yield Non-Consolidated Solvency Margin Ratio Ordinary Profit (Loss)/Net Income (Loss) Investment Assets/Assets in Saving-Type Account Assets/Assets in Saving-Type Investment 5 0 (5) 10 90 80 70 (%) (%) (10) (15) 110 120 100 68.6 (41.1) 119.7% (6.5%) 3.23% (124.2) 49.7 (24.9) (17.6) Government Bonds, Municipal Bonds, Corporate Bonds Domestic Stocks Foreign Securities Other Securities Loans Land and Buildings Others* (1.6%) 105.3% * Total of deposits, call loans, receivables bought under resale agreements, monetary receivables bought, money trusts 49.1 (0.76%) 2.2 (FY2011) 173.9 3.4% 53.3 105.2% (33.1) (33.1) 7.55% 5.4 717.4 34.4% (271.3) 2.3% 19.8 (11.7) (9.76%) 541.2 101.8% 25.9% 8.0% 166.8 (14.0) (231.9) ’07 ’08 ’09 ’10 ’11 ’07 ’08 ’09 ’10 ’11 ’07 ’08 ’09 ’10 ’11 ’07 ’08 ’09 ’10 ’11 1.2% 100.3% 62.9 (2.2) 331.8 15.9% 9.4% 196.5 (7.30%) 0 0 5 0 40 20 (5) 10 FY FY 5.7% (%) (20) (40) FY 200 100 (10) 117.9 Investment Profit (Realized Basis) MTM Yield Investment Profit (Mark-to-Market Basis) Underwriting Balance Underwriting Profit (Loss) Combined Ratio Underwriting Balance (300) (100) (200) (140) (Billions of yen, %) 14.4 (Billions of yen) (Billions of yen) 0.7% Return on Equity (ROE) Breakdown of Investment Assets Investment Profit (Realized Basis)/ Yield Investment Profit (Mark-to-Market Basis)/MTM Underwriting Balance/Underwriting Profit (Loss)/Combined Ratio Profit (Loss)/Combined Balance/Underwriting Underwriting Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights (Billions ofyen) 18,000 12,000 (Billions ofyen) Income fromInsurancePremiums SmoJpnHmwr 483 493 479 2300.9% 2437.9% 2459.3% 2408.3% SompoJapanHimawari 2596.3% 2750.4% Nipponkoa 2947.5% 2914.3% Life 8 1,715,400 1,591,121 1,502,075 1,391,003 5.U.S.dollaramountsare translatedfrom yenattherateof¥82.87=U.S.$1.00,approximate rate prevailing atMarch 31,2 355,109 4. 327,745 38,121 SompoJapanHimawari 3,067,388 3. 2,768,734 2. 328,406 33,421 Notes: 1. 2,172,216 Solvency MarginRatio 336,660 2,229,565 Non-Consolidated 30,573 275,815 16,201,321 14,686,763 Nipponkoa 265,907 (billionsofyen) 26,805 13,543,489 Embedded Value 12,946,213 267,142 Total Assets 275,652 Income from InsurancePremiums Annualized Premium from NewBusiness Amount ofNewBusiness Life Annualized Premium from BusinessinForce Amount ofBusinessinForce 6,000 Non-Consolidated IndicatorsforNKSJHimawariLife 100 200 300 400 FY FY NKSJ Holdings, Inc. (Right scale) Annualized PremiumfromBusinessinForce Amount ofBusinessinForce 0 0 The fi gures of“Solvencymarginratio”FY2007andFY2008were corrected onJune2,2010. on different basis. to tightenandrefi ne calculationoftotalsolvencymarginandestimationriskothers.Therefore, thefi gures ofF Under CabinetOffi ce Ordinance No.23(2010)andPublicNotice48oftheFinancialServicesAgency(2010),standards fo The itemsregarding “BusinessinForce” and“NewBusiness”represent thesumofIndividualinsuranceandannuities. The fi gures priortoFY2011are thesumoffi gures ofSompoJapanHimawariLifeandNipponkoaexceptforthenon-conso 12,946.2 336.6 275.6 0 0 0 1 ’11 ’10 ’09 ’08 ’07 0 0 0 1 ’11 ’10 ’09 ’08 ’07 13,543.4 267.1 2. 327.7 328.4 14,686.7 265.9 16,201.3 355.1 275.8 286.2 17,659.7 Y07F20 Y09FY2010 FY2009 FY2008 FY2007 360.1 246.4 (Billions ofyen) (TEV) (TEV) 83.5 100 200 300 0 (MCEV) 227.2 (Billions ofyen) 1,500 2,250 3,000 (Billions ofyen) Total Assets (TEV) 85.9 1,000 1,500 2,000 750 FY 500 FY (Right scale) Annualized PremiumfromNewBusiness Amount ofNewBusiness 0 0 Millions ofyen ,2. 2,172,2 2,229.5 1,391.0 26.8 0 0 0 1 ’11 ’10 ’09 ’08 ’07 0 0 0 1 ’11 ’10 ’09 ’08 ’07 (MCEV) 290.7 (TEV) 96.1 1,502.0 30.5 Y2007-2010 andFY2011are calculatedrespectively based 012. lidated solvency margin ratio and the embedded value. lidated solvencymarginratioandtheembeddedvalue. (MCEV) r thecalculationofsolvencymarginratioare revised 101.4 345.6 (TEV) 2,768.7 1,591.1 33.4 17,659,712 213,101 1,809,210 21,831 2,968,353 35,819 495 1449.5% 1449.5% Y01FY2011 FY2011 360,180 4,346 286,252 3,454 (MCEV) 36,766 443 3,067.3 615.3 1,715.4 38.1 2,968.3 1,809.2 U.S. dollars Millions of (MCEV) 7,425 (Billions ofyen) 36.7 40 10 20 30 0 Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

9 1,449.5% 2,300.9% NKSJ Holdings, Inc. 2,437.9% 2,459.3% ’07 ’08 ’09 ’10 ’11 2,408.3% 0 (%) FY Notes) In FY2011, the calculation method was revised. Himawari Life, Figures from FY2007 to FY2010 were those of Sompo Japan the pre-merger company. 3,000 2,000 1,000 Non-Consolidated Solvency Margin Ratio Solvency Margin Non-Consolidated 615.3 101.4 345.6 96.1 290.7 85.9 ’07 ’08 ’09 ’10 ’11 83.5 246.4 227.2 0 FY Sompo Japan Himawari Life Nipponkoa Life NKSJ Himawari Life Life Nipponkoa Life Sompo Japan Himawari 500 400 300 200 100 700 600 Embedded Value Embedded (Billions of yen) Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 10 Message from theManagement NKSJ Holdings, Inc. Insurance. InMarch 2012,weannouncedthatSompoJapan companies includingthecreation ofNKSJHimawariLife tion hasprogressed withthemergerandintegrationofgroup formed inApril2010.Duringthisperiod,managementintegra- Around twoyears havepassedsincetheNKSJGroup was recovery. earthquake andtsunami,alongwithmyhopesforaspeedy deepest sympathiestoallthosewhowere affected bythe Japan Earthquakestruckin2011.OnceagainIconveymy port. More thanoneyearhaspassedsincetheGreat East I wouldliketoexpress mygratitudeforyourcontinuedsup- Company Evaluated Service the MostHighly To Become NKSJ Holdings,Inc. President Kengo Sakurada Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

11 NKSJ Holdings, Inc. and life insurance. The NKSJ Group will strive to expand its and life insurance. The NKSJ Group activities overseas in its quest for growth. lling its social to fulfi committed remains The NKSJ Group the highest quality of service to support mission to provide will customers. We the security and peace of mind of its our earnings to enhance busi- strive to increase power and at increasing will be directed These efforts ciency. ness effi customers. evaluations from value and improving shareholder support to your continued looks forward The NKSJ Group its goals. and cooperation as it endeavors to reach September 2012 the security and peace of mind of customers, including P&C vice enterprise by providing innovative services that support vice enterprise by providing addition to these initiatives, we aim to evolve into a true ser- implementing a cross-selling model with P&C insurance. In model with P&C insurance. In implementing a cross-selling by strategically allocating business resources while rigorously while rigorously by strategically allocating business resources tic life insurance business, we aim to achieve sustained growth tic life insurance business, we aim to achieve sustained growth ness scale, but also service quality. Furthermore, in the domes- Furthermore, ness scale, but also service quality. domestic P&C insurance business not only in terms of busi- domestic P&C insurance business not only efficiency and profitability by leading the industry in the in the by leading the industry and profitability efficiency consistently maintain the industry’s highest level of business consistently maintain the industry’s work to build a globally competitive organization. We aim to We work to build a globally competitive organization. business integration. Going forward, the NKSJ Group will will the NKSJ Group business integration. Going forward, Group is entering a new stage to create synergies from the synergies from is entering a new stage to create Group 31, 2013, the NKSJ scal year ending March the fi From alone basis. insurance company in terms of premiums written on a stand- insurance company in terms of premiums Insurance Inc., the new company, will be Japan’s largest P&C will be Japan’s Insurance Inc., the new company, year ending March 31, 2015. Sompo Japan Nipponkoa 31, 2015. Sompo Japan Nipponkoa year ending March merge into a single company during the fi rst half of the fi scal rst half of the fi fi merge into a single company during the and Nipponkoa, our main P&C insurance companies, will fully and Nipponkoa, our main P&C insurance Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 12 merge intoasinglecompany duringthefi Management integration hasbeensteadilyprogressing. The Group’s core companies, SompoJapan andNipponkoa will A Two years have passedsinceNKSJHoldingswas formed. What’s changed? Q Interview withthePresident NKSJ Holdings, Inc. nswer: uestion: rst halfoffi tance business, whichweseektoexpandinthe future. of PrimeAssistance Inc.inApril2012marked thefi rst stepindeveloping ourassis- services toprovide customerswithsecurity andpeaceofmind.Theestablishment Inaddition,theGroup isworkingto developanddeliveranumberofadvanced aging itsstrengthened operatingbase. Nipponkoa. Through thismerger, weaimtomaximizetheGroup’s profi tability lever- Inc.” duringthefi rst halfoffi scal 2014,through themerger ofSompoJapanand business, wewillestablishanewcompany“SompoJapan NipponkoaInsurance Inthedomestic property and casualty(P&C)insurancebusiness,asourfl agship NKSJ HimawariLifeInsurance,Inc.inOctober2011. group companieshavebeenproceeding smoothly, includingtheestablishmentof since theNKSJGroup wasestablishedinApril2010,mergerandintegration of We havemadesteadyprogress integratinggroup companies.Duringthetwoyears scal 2014. Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

13 NKSJ Holdings, Inc. Sonpo 24 Overseas subsidiaries Healthcare Business Healthcare Sompo Japan DIY Life Saison Automobile & Fire Risk Consulting Business Defi ned-contribution Pension Business Defi Overseas Insurance Business (Direct Insurance Business) (Direct Prime Assistance Asset Management NKSJ Himawari Life Sompo Japan Nipponkoa Insurance, the new company to be created through the through be created Insurance, the new company to Sompo Japan Nipponkoa company based on premiums. merger will be the largest domestic insurance with the largest the company ed with creating Nevertheless, we will not be satisfi 1 insurance com- ed when it becomes the No. will only be satisfi business scale. We determined to make this happen we are pany in terms of customer evaluation and to customers. the quality of services offered rapidly by improving leading is intended to be Japan’s Sompo Japan Nipponkoa Insurance Ultimately, This will enable the quality. well as product company in terms of business scale as borderless on the global stage in an increasingly company to compete effectively world economy. Sompo Japan Nipponkoa Insurance will open for business. now, years from Two work to integrate the businesses of Sompo Prior to the scheduled opening, we will establishing a co-headquarters system, are Japan and Nipponkoa. For example, we and procedures ces. Standardized offi integrating sales bases and combining claims Of tability. profi contributing to improved ciency, effi will improve resources shared steadily integrating their IT systems as well. course we are Sompo Japan Nipponkoa Sompo Japan Nipponkoa (during the fi rst half of FY2014) (during the fi Financial and Other Services Domestic P&C Insurance Business (Asset Management Business) (Assistance Business) Domestic Life Insurance Business

uestion: uestion:

nswer: nswer: NKSJ Holdings It will be the Japan’s largest P&C insurance company in terms of size. However, it further aims to be the No.1 company it further aims to be the No.1 company However, in terms of size. company P&C insurance largest It will be the Japan’s evaluation. in terms of customer A Q to be new company the Insurance,” Nipponkoa “Sompo Japan about detailed information some more Please provide full merger. the through established Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights What impactdidthesedisastershave ontheGroup’s performance? In fi Q 14 Infi A What isthefuture forecast aboutperformance infi Q ness stemmingfrom natural disasters. tic life insurance business, we were able toabsorblossesinthedomesticP&Cinsurance andoverseas insurance busi- Adjusted profi A NKSJ Holdings, Inc. scal 2011, natural disastersbattered theeconomy, for examplethere were typhoonsinJapan andfl scal 2012, we expectsignifi nswer: nswer: uestion: uestion: t, astrategic management indicatoroftheNKSJGroup, remained intheblack. With growth inthedomes- cant improvement ofperformance primarilyintheDomesticP&Cinsurance business. while surrender rates remained farbelowourinitialforecast. strong performance wasattributabletoasteadygrowth innewpremiums written the domesticlifeinsurancebusiness,helpingGroup tostayintheblack.This remained positive, totaling¥1.2billion.Embeddedvalueincreased ¥100.0billionin Ontheotherhand,adjustedprofi t, theGroup’s strategicmanagementindicator, sions ofaseriesnaturaldisastersplacingstrainonthosebusinesses. lion intheoverseasinsurancebusinesswere recorded duemainlytotherepercus- Netlossesof¥71.3billioninthedomesticP&Cinsurancebusinessand¥19.7bil- remaining ¥91.8 billiondamagestoprofi t, leadingtoadeclineinordinary profi t. companies through thereversal ofcatastrophic lossreserves. We chargedthe Group absorbed ¥18.0billionoflossesunderwrittenbythedomesticinsurance Lossesincurred bythefl ooding inThailandamountedto¥109.8billion.The well asdomestictaxationsystemreforms. lion andnetlossof¥92.2billion,duetonaturaldisastersinJapanoverseasas of lifeinsurancepremiums. However, theGroup recorded ordinary lossof¥51.8bil- to a2.1%increase ofnetpremiums writtenofP&Cinsuranceanda5.0%increase In thefi scal yearunderreview, ordinary incomesteadilygrew. Thiswasattributable business maystill postalossasweare nowonlyhalfway through the process of ing theabsence oftheimpactfl ooding inThailand.Theautomobileinsurance InthedomesticP&Cinsurancebusiness,weexpect substantialrecovery refl ect- is alsoexpectedtosignifi cantly recover year onyear, to¥53.7billion. steady growth inordinary income.Adjustedprofi t, astrategicmanagementindicator ¥24.0 billion.We expectaconsiderableimprovement yearonyear, alongwith In fi scal 2012, ourforecast isforordinary profi t of¥64.0billionandnetincome scal 2012? oods in Thailand. Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

15 2.2 6.1 24.0 53.0 Total (37.3) 2012 (Estimate) NKSJ Holdings, Inc. (3.9) Total (60.1) (11.1) (17.2) (92.2) 2011 (Actual) 0 60 FY Domestic P&C insurance business Domestic life insurance business Overseas insurance business Consolidated adjustments/others (60) 120 (120) (Billions of yen) Net Income (NKSJ consolidated) Net Income 8.4 4.3 64.0 Total (54.7) 106.0 2012 (Estimate) 1.1 (3.7) Total (16.5) (32.6) (51.8) 2011 (Actual) 0 60 FY Domestic P&C insurance business Domestic life insurance business Overseas insurance business Consolidated adjustments/others (60) 120 We seek to realize sustainable growth for the domestic life insurance business, life insurance business, for the domestic sustainable growth seek to realize We securing an earningsonly to the domestic P&C insurance business. pillar second to this of the NKSJ Group devote the management resources will aggressively We P&C insurance. of life insurance alongside cross-sales promoting goal, thoroughly x our focus on sales of more strategy is important and we continuously fi Product insurance and income such as medical products, protection-type profitable protec- into promoting resources plan to devote more compensation insurance. We strengthening its underwriting performance, reducing system expenses and com- its underwriting performance, reducing strengthening tability of the automobile insurance busi- the profi improve To pleting other reforms. aiming to achieve appropriate is essential and we are ness, continuous rate revision rates. insurance premium insurance business, and the domestic life in the overseas expect recovery We to earnings.insurance will naturally continue to contribute that a drastic rationaliza- business, we recognize In the domestic P&C insurance as such measures will achieve this through We t structure. of our profi tion is required the merger of Sompo Japan Synergies obtained through exhaustive cost reduction. eliminate duplica- will thoroughly We and Nipponkoa will cement this transformation. the advantage of scale, we will tion to maximize merger synergies. Leveraging the combined ratio. operating costs and improve reduce (Billions of yen) Ordinary Profit (NKSJ consolidated) (NKSJ consolidated) Ordinary Profit Total 2012 2,820.0 (Estimate) Total 2011 2,790.5 (Actual)

uestion: uestion:

nswer: nswer: 0 FY 500 1,500 1,000 2,500 2,000 3,000 (Billions of yen) Ordinary Income (NKSJ consolidated) Ordinary Income

A mergers through overseas business expanding while business insurance in the domestic life growth aim to accelerate We and acquisitions. Q business. insurance and the overseas insurance in the domestic life strategies business future Please tell us about your Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 16 effi The Group retains suffi A explain your capitalmanagement policy? How didthenatural disasters, such asfl Q Change inAdjustedConsolidatedProfit (Billions ofyen) (100) 100 (50) FY ciency throughreduction further ofstrategic-holding stocks. 50 NKSJ Holdings, Inc. 0 Total Financial services Overseas Domestic life Domestic P&C nswer: uestion: (Actual) 2010 21.3 59.8 80.7 14.1 (2.7) 2.4 (Actual) 2011 100.0 (19.7) (71.3) 1.2 (7.6) cient capitalandremains fi (Estimate) 2012 (33.2) 85.0 53.7 6.3 (4.3) ooding in Thailand, impacttheGroup’s operating capital?Couldyou please and tightercapital regulations inthe future, furtherreduction maybewarranted. largely exceedsthisgoal.When weconsidertheGroup’s current capitaleffi ciency mately ¥130billion.Thisisaminimum. Inpractice,weare aimingatareduction that Ourremaining targetforreducing strategic-holdingstocksnowstandsatapproxi- than ¥170billionduringfi scal 2010and2011. three yearsfrom fi scal 2010to2012.We already reduced theseholdingsbymore are workingtoachieveareduction of¥300billioninstrategic-holdingstocksover through concentrationindomesticequities.Thishastobeaddressed properly. We Intermsofassetmanagement,theGroup isexposedtosignifi cant risk, especially level. Thiscorresponds tothesoundnessofanAA-ratedcompany. 129% whenmeasured withtheValue atRiskmethodadopting99.95%confi dence maintaining anAAcredit rating.Currently, theGroup’s ratioofcapital torisklevelis TheGroup managesitsriskandcapitalonaconsolidatedbasis,withthe aimof Group actually increased itscapitallevelslightly. insurance businesswasmore thanabletocompensate.Year onyear, theoverall natural disasterssuchasfl ooding inThailand,butthestrong performanceofthelife In fi scal 2011,theP&Cinsurancebusinessdidexperienceacapitaloutfl ow dueto Bytheendoffi scal 2011,theGroup hadinvested¥50billionthrough M&A. and highmargins. not aforegone conclusion.Itdependsontargetswithstrong prospects forgrowth course ourstrictinvestmentpoliciesremain unchanged.Ourplannedinvestmentis We plantoinvest¥200billionoverthree yearsfrom fi scal 2010tofi scal 2012.Of existing overseasbases. we willutilizemergersandacquisitions(M&A),alongwiththeorganicgrowth ofour To realize therapidandsubstantialgrowth oftheoverseasinsurancebusiness, and lifeinsurancebusinesses. insurance businesswillbecomeastrongpillartorivalthedomesticP&C earnings the Group’s growth drivers.Bycontinuouslyworkingtocultivateit,theoverseas Ontheotherhand,werecognize thattheoverseasinsurancebusinessisoneof tion-type products. nancially sound. Lookingahead, theGroup aimstoimprove capital Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

17 tability and NKSJ Holdings, Inc. ragement you bring to the NKSJ Group. you ragement Under the Group’s basic policies for corporate social responsibility, we are striving to striving we are corporate social responsibility, basic policies for Under the Group’s to contribute making efforts continuously new social value. For example, we are create with security and peace of mind. In customers and to provide to a sustainable society, became member companies of the Group December 2011, NKSJ Holdings and other a Sustainable Society Action towards signatories of the “Principles for Financial with the purpose fully agree Century).” We (Principles for Financial Action for the 21st of these newly established principles. engaged in a series of activities to support disaster scal 2011, the Group In ﬁ Employees participated in East Japan Earthquake. following the Great stricken areas made contributions Group and the to support reconstruction voluntary efforts the provided the Group the Central Community Chest of Japan. Moreover, through and industry, of local agriculture support recovery help with aid supplies. To region the local food prod- tastings, to promote we supported events, such as sales and and other activities, we rallied these Through by the disaster. affected ucts of areas to support those in need. of the Group the overall strength NKSJ Holdings globally. highly regarded CSR initiatives are The NKSJ Group’s Indexes. Also, the was again included as a stock in Dow Jones Sustainability World and Company is either included or candidate for inclusion in the FTSE4Good Index investment (SRI) funds as of April 1, 2012. other socially responsible and to aims at sustainable growth the NKSJ Group these initiatives Through its corporate value. improve Looking ahead, we will strive for the further reduction of strategic-holding stocks in of strategic-holding for the further reduction we will strive Looking ahead, plan. excess of the existing ciency. Aiming to evolve into the true service enterprise, the Group continues to deliver advanced advanced to deliver continues the Group into the true service enterprise, Aiming to evolve ciency.

uestion: uestion: uestion: uestion:

nswer: nswer: nswer: nswer: improve business efﬁ business improve security and peace of mind to customers. offer which insurance, and life including P&C insurance services, insurance support the encou and value continuing to your look forward We The NKSJ Group will continue to improve its corporate value through continuous efforts to expand proﬁ efforts continuous through value its corporate to improve will continue The NKSJ Group Is there anything else you’d like to share with your shareholders? with your to share like else you’d anything Is there A Q

A society by to a sustainable contribute and new social value to create work continuously we one step ahead, remain To with security and peace of mind. customers providing Q social responsibility? corporate in under way describe initiatives Could you Review of Operations Overseas

Approval Obtained to Establish Beijing Branch of Subsidiary in China Sompo Japan Insurance (China) Co., Ltd. (SJIC) received ofﬁ cial approval to establish a branch ofﬁ ce in Beijing from the China Insurance Regulatory Commission and kicked off branch operations in February 2012. With the opening of the Beijing Branch, SJIC has succeeded in securing Consolidated

Financial Highlights the biggest service network in China of any Japanese P&C insurer. SJIC now provides insurance services through the network of ﬁ ve regions including Liaoning, Shanghai, Guangdong, Jiangsu and Beijing. In 2012, Sompo Japan marked the 30th anniversary in China, and aims to further strengthen

About its businesses in China through these operating bases. the NKSJ Group Preliminary Approval Obtained to Establish Shangdong Branch of Subsidiary in China NIPPONKOA Insurance Company (China) Limited (NKC), a wholly-owned subsidiary of Nipponkoa, received preliminary approval to establish a branch ofﬁ ce in Shangdong from the China Insurance Regulatory Commission in March 2012. Upon ofﬁ cial approval from the China Insurance Regulatory

Message from Commission, the branch is scheduled to start operations around October 2012. the Management NKC became the ﬁ rst Japanese P&C insurer to establish a Shangdong branch. NKC aims to provide quick and extensive insurance services, especially to meet the needs of a growing number of Japanese-afﬁ liated companies moving into Shangdong, primarily in the cities of Qingdao and Yantai. Striving to improve its service network in China, Nipponkoa will further introduce P&C insur- Interview with the President ance services and contribute to expansion of the P&C insurance industry in China.

Release of Overseas Travel Insurance Service for Local Companies in China In January 2012, Sompo Japan Insurance (China) Co., Ltd. (SJIC) introduced new overseas trav- Review of Operations el insurance, namely “Yi-xing-quan-qiu,” for local companies in China. In addition to standard covers, “Yi-xing-quan-qiu” also provides corporate customers with 24-hour assistance service for their employees on overseas business trips. The scope of assistance incorporates a hospital referral service, interpretation service at hospitals, cashless payment service at afﬁ liated medical facilities as well as other emergency services including travel arrangement for family members and a search and rescue service. Structure Management Sompo Japan will further augment its operations in China’s personal insurance market.

Acquired 100% Ownership of an Underwriting Agency in the Netherlands In October 2011, Nipponkoa acquired 100% ownership of Nateus Nederland Besloten Vennootschap, an underwriting agency in the Netherlands, by purchasing its stock through NIPPONKOA Insurance Company (Europe) Limited (NKE), a wholly-owned subsidiary of the Approach to CSR Approach The NKSJ Group’s The NKSJ Group’s Company. In November 2011, the company name of Nateus Nederland Besloten Vennootschap changed to NIPPONKOA Nederland Besloten Vennootschap. Through this acquisition, Nipponkoa will expand NKE’s operations and participate in the European insurance market, which is one of the world’s principal insurance markets, providing good-standing companies in the Netherlands with highest quality services and peace of mind. Financial Section

Initiated Support Service for Countermeasures against Overseas Flooding In June 2012, NKSJ Risk Management, Inc. initiated Support Service for Countermeasures against Overseas Flooding. This service supports the implementation of each customer’s business Corporate

Information continuity measures in the event of ﬂ ooding. This service is especially designed for Japanese- afﬁ liated companies with operating bases in Southeast Asian countries including Thailand.

18 NKSJ Holdings, Inc. In 2011, fl ooding in Thailand forced numerous Japanese-affi liated companies to cease opera- Financial Highlights tions. Complete recovery required a long time and the fl ooding caused extensive problems due Consolidated to supply chain disruption, which gravely impacted production. In response to these events, NKSJ Risk Management initiated this new service aiming to utilize experience and know-how accumulated over the years in business continuity support services, extending to risk assessment of typhoons and fl ooding, the formulation of business continuity plans (BCP) and training on BCP implementation. the NKSJ Group About Partnership with Local Financial Institutions to Support Overseas Expansion Sompo Japan and Nipponkoa are supporting the overseas expansion of domestic companies in local cities. Based on business partnership agreements with local fi nancial institutions, we offer the Management support to their corporate clients as they expand overseas operations or plan overseas expansion. Message from The scope of partnership includes supplying overseas information and co-sponsoring seminars.

Representative Offi ce Opened in Phnom Penh In Cambodia, Lonpac Insurance Berhad, Nipponkoa’s investment partner in Malaysia, set up the President Campu Lonpac Insurance Private Limited Company (“Campu Lonpac”) in a joint venture with a Interview with local bank. Until now, Nipponkoa had been providing insurance services to Japanese companies through Campu Lonpac, but in June 2012, established a representative offi ce in Cambodia, the fi rst Japanese insurer to do so. The opening of this Phnom Penh representative offi ce will enable Nipponkoa, in co-operation with Campu Lonpac, to expand its services to Japanese fi rms moving into Cambodia. Operations Review of Overseas Initiatives—Centered on Local Markets In recent years, through investment in or acquisition of local insurance companies, the NKSJ Group has built up strong platforms in promising emerging markets. These include Universal Sompo General Insurance Company Limited in India (established as a joint venture in 2007), Management

Maritima Seguros S.A. in Brazil (acquired 50% of ordinary shares in 2009), Tenet Insurance Structure Company Limited in Singapore (acquired in 2010), Sompo Japan Sigorta A.S. in Turkey (acquired in 2010), and Berjaya Sompo Insurance Berhad in Malaysia (turned into a subsidiary in 2011). Alongside strong market growth in each country, each company is continuously growing its own operating base backed by its own strength. In ﬁ scal 2011, total GWP (gross written premium) of The NKSJ Group’s these companies grew 14% year-on-year. We expect continuous growth and further contribution Approach to CSR to Group proﬁ ts in the coming future.

Signed the UN Principles for Sustainable Insurance (PSI) In June 2012, Sompo Japan became signatory to the UN Principles for Sustainable Insurance.

PSI is an international initiative which declares that they will take environmental, social, and gov- Financial Section ernance issues into account through their business decisions. Deeply committed, Sompo Japan has greatly contributed to the development of the principles. These principles were announced in public during the RIO+20 United Nations Conference on Sustainable Development. Mr. Masatoshi Sato, Chairman of Sompo Japan attended the ofﬁ cial signing ceremony held in Rio de Janeiro. Masatoshi Sato (right), Chairman of Sompo Japan Information at the press conference Corporate

NKSJ Holdings, Inc. 19 Japan

Organizational Realignment among the NKSJ Group Member Companies Basic Merger Agreement of Sompo Japan and Nipponkoa Sompo Japan and Nipponkoa have agreed to a full merger in the ﬁ rst half of ﬁ scal 2014. Through this merger, a new company Sompo Japan Nipponkoa Insurance will be created. With the over- Consolidated

Financial Highlights arching strategic target of becoming the No. 1 P&C insurance company in terms of customer evaluation, Sompo Japan Nipponkoa Insurance will aim for sustainable growth and contribution to a sustainable society.

The Integration of Sompo Japan and Nipponkoa Kicked Off About Toward the establishment of Sompo Japan Nipponkoa Insurance in the fi rst half of fi scal 2014, the NKSJ Group Sompo Japan and Nipponkoa have been integrating operations and offi ces since December 2011 and have established a co-headquarters system. The companies will also work to integrate their sales bases and combine claims offi ces, including overseas bases during fi scal 2012 and 2013. The NKSJ Group strives to realize integration synergy even prior to the formal merger of Sompo Japan and Nipponkoa. Message from the Management Two Newly Created Companies of the NKSJ Group Inauguration of NKSJ Himawari Life On October 1, 2011, NKSJ Himawari Life Insurance, Inc. was established through the merger of Sompo Japan Himawari Life and Nipponkoa Life. As a strategic subsidiary shouldering the Interview with the President Group’s life insurance business, NKSJ Himawari Life shall further strengthen its operating founda- tion and accelerate its growth.

Participation in Assistance Service Business: Established Prime Assistance Inc. In April 2012, NKSJ Holdings has established Prime Assistance Inc., jointly with Prestige International Inc., the largest domestic company which operates assistance service as a privately- Review of Operations owned entity. From October 2012, Prime Assistance is planning to initiate its own road assistance service oriented toward the automobile insurance policyholders of Sompo Japan and Nipponkoa. Positioning the assistance business as a core service business, the NKSJ Group aims to improve its corporate value by moving beyond the standard bounds of the insurance business to

Structure develop products and services which carefully meet customer needs. Management

Corporate Social Responsibility Became signatories to the Principles for Financial Action towards a Sustainable Society (Principles for Financial Action for the 21st Century) In December 2011, NKSJ Holdings and other group members became signatories to the Approach to CSR Approach The NKSJ Group’s The NKSJ Group’s Principles for Financial Action towards a Sustainable Society (Principles for Financial Action for the 21st Century). These principles were newly formulated with the aim of expanding environmentally-friendly fi nance in Japan. The NKSJ Group is developing advanced initiatives for global environmental issues ahead of other domestic fi nancial companies. The Group offers services, products and solutions related to risk fi nance which are environmentally-friendly and also contributing to society. Under “the NKSJ Financial Section Group’s Approach to CSR” (CSR basic policy), the Group is accelerating its efforts to contribute to a sustainable society through the businesses of its group members. Corporate Information

20 NKSJ Holdings, Inc. Initiated Free Smartphone Application: Financial Highlights Consolidated “Trouble Ch” Service Provides the Solution for Troubles Anywhere, Anytime Sompo Japan released a free Smartphone application in July 2011. The “Trouble Ch” (Channel) service aims to provide the quick solutions customers seek when trouble arises during travel and daily life. The service incorporates advice from specialists to offer useful troubleshooting know- how, such as “ﬁ xing a car with a dead battery,” “ﬁ rst-aid burn treatment,” and “emergency con- the NKSJ Group tacts for lost passports.” From March 2012, a new service was added to automatically suggest About relevant issues and solutions based on proximity to facilities such as airports and golf courses.

Release of “Hotto” (heart-easing) Medical Plan, Kenko no Omamori

In conjunction with its October 2011 founding, NKSJ Himawari Life released the new “Hotto” the Management (heart-easing) Medical Plan Kenko no Omamori. This medical insurance provides comprehensive Message from coverage when undergoing surgery and invasive medical procedures insurance. This product builds on the reputation established by Kenko no Omamori, a former product introduced in August 2008, which provided generous beneﬁ ts for advanced medical procedures. Kenko no Omamori has now evolved with even broader, more generous coverage to provide customers the President with even greater peace of mind and security when undergoing intensive medical procedures. Interview with Looking ahead, NKSJ Himawari Life will enhance its medical insurance service in line with the latest medical advances, aiming to be an insurance company which offers customers top quality service, as well as peace of mind. Operations Review of We would like to express our heartfelt ter stricken areas and augmenting call Our Response to sympathy and deepest condolences to centers and claims ofﬁ ces. those who suffered from the Great In addition to initiatives for prompt the Great East East Japan Earthquake. We deeply and proper insurance payment, the

wish for the swift, full recovery of the NKSJ Group has been supporting Management

Japan Structure disaster stricken areas. reconstruction of devastated areas. To Earthquake Immediately after the occurrence of support farmers who suffered damage the Great East Japan Earthquake on from the spread of rumors of radiation, March 11, 2011, the NKSJ Group the Group supported sales events to The NKSJ Group’s established individual Disaster promote agricultural products made in Approach to CSR Response Headquarters chaired by the Fukushima and Ibaraki prefectures. presidents of each group member The Group also encouraged its 34,000 company. Aiming to ensure compre- employees to participate in the NKSJ hensive service for our customers, the Volunteer Days, held from October to Group also established Local December 2011, to support recon- Volunteer Project in the Devastated Response Headquarters to take struction activities in the devastated Financial Section Areas charge of gathering damage data and areas. Both in Japan and overseas, handling insurance payouts. executives and employees from many Under the direction of each head- Group companies and insurance agen- quarters, the Group rallied all of its cies also made donations. strength and endeavored to accelerate Information insurance payments to customers Corporate through such initiatives as dispatching “Cheer Up Market” for the employees to operating bases in disas- Devastated Areas

NKSJ Holdings, Inc. 21 Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 22 year oftheirappointment. Shareholders pertainingtothefi scal yearthatends withinone conclusion ofthefinalordinary GeneralMeetingof each fi scal year, thetermofoffi ce ofdirectors expires atthe ciently. To provide clearmanagementaccountability within perform theirmanagementdutiesappropriately, fairlyandeffi - experience pertainingtoimportantmatters,sothattheycan Directors must improve theirknowledge andaccumulate dent directors. Company hasappointedsixofits12directors asindepen- decision making.To benefi t from outsideperspective,the appropriate number ofmembersrequired toallowtimely ple, theBoard ofDirectors meetsmonthly, withthe ters andsupervisestheperformanceofoperations.Inprinci- Directors makes decisionsonimportantmanagementmat- Alongside performingitsstatutoryduties,theBoard of 2. Directors andthe Board ofDirectors tors makeupthemajorityofcommitteemembers. are chaired byindependentdirectors, and independentdirec- Investment CommitteetoadvisetheBoard ofDirectors. Both established aNominationandCompensationCommittee structure,corporate governance NKSJHoldingshasalso theaimofcreating ahighlytransparent With group-wide tive offi cer system. and accountability, theCompanyhasalsoadoptedanexecu- ensure timelydecision-making andclarifychainsofauthority ness ofsupervisoryfunctionsandchecksbalances.To Directors, bothwork tomaintainandenhancetheeffective- Corporate Auditors,whichare independentfrom theBoard of of operations,andtheCorporateAuditorsBoard of sible forprincipalmanagementdecisionsandthesupervision Corporate Auditors.TheBoard ofDirectors, whichisrespon- NKSJ Holdingsisstructured asacompanywithBoard of Structure1. OverallGovernance and defi strengthen itsrelationships of trust withallstakeholders.TheBoard ofDirectorspolicies setscorporategovernance NKSJ Holdingsiscontinuallyworkingtoimproveand thetransparencyofitscorporategovernance, andfairness Corporate Governance, Internal Control Internal andCompliance Corporate Governance, Management Structure CorporateGovernance NKSJ Holdings, Inc. nes the overall vision for the governance organizationanditsmechanisms. nestheoverallvisionforgovernance four yearsoftheirappointment. Shareholders pertaining tothefi scal yearthatendswithin the conclusionoffinalordinary GeneralMeetingof effectively. Thetermofoffi ce ofcorporateauditorsexpires at and plans,etc.,toensure thattheseauditsare conducted TheBoard ofCorporateAuditorsformulatesauditpolicies customer protection. business operations,takingintoaccounttheimportanceof thelegalityandappropriatenessconduct auditsconcerning of Alongside performingtheirstatutoryduties,corporateauditors 3. CorporateAuditorsandBoard ofCorporateAuditors members ofthecommittee. is electedfrom amongtheindependentdirectors whoare of membersmustbeindependentdirectors. Thechairperson independence andneutralityoftheCommittee,majority who are appointedfrom amongthedirectors. To ensure the The Committeeshouldhavenomore thanfi ve members, with factorsincludingtheirscopeandscaleofoperations. directors andexecutiveoffi cers ofsubsidiaries,inaccordance involved indeterminingtheappointmentandconditionsof The NominationandCompensationCommitteeisalso compensation. tors andexecutiveofficers, compensationstructures and advises theBoard of Directors ontheassessmentofdirec- makes decisionsontheproposal ofcandidates,andalso for theappointmentofdirectors andexecutiveoffi cers and Compensation Committeedeterminespoliciesandstandards tion ofdirectors andexecutiveoffi cers, theNominationand To ensure transparency intheappointmentandcompensa- Committee toadvisetheBoard of Directors. Compensation Committee,andalsotheInvestment NKSJ HoldingshasestablishedtheNominationand 4. Investment Committee Nomination andCompensationCommittee Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

23 (As of July 1, 2012) (As of July 1, NKSJ Holdings, Inc. Prime Assistance Prime Nomination and and Nomination Investment Committee Investment Management Committee Management Task-specific Committees Task-specific Compensation Committee Compensation General AffairsGeneral Risk Management Risk Human Capital and Capital Human Supervision-guidance/ Approval-reporting Consultation/ Advice Asset Management Asset Sompo Japan Nipponkoa Japan Sompo Subsidiary of Sompo Japan Sompo Subsidiary of Nipponkoa Asset Management Asset Nipponkoa IT Planning Planning IT Compliance and Administration and Supervision-guidance/ Approval-reporting Appointment/ Dismissal President (Directors) Officers in charge Officers in Board of Directors of Board NKSJ Himawari Life Himawari NKSJ Shareholders’ Meeting Shareholders’ Corporate Legal Corporate Selection/Dismissal/ Supervision-guidance/ Approval-reporting Supervising Management Corporate Dismissal Dismissal Appointment/

Appointment/ Auditing/Reporting Nipponkoa Auditing/Reporting Nipponkoa Subsidiaries, etc., of Accounting Reporting Corporate Planning Corporate Supervision-guidance/ Approval-reporting Internal Audit Internal Auditors’ Board Staff of Corporate of Staff Corporate Auditors Corporate Auditing Independent Auditors Sompo Japan Sompo Sompo Japan Sompo Board of Corporate Auditors Subsidiaries, etc., of Appointment/ Dismissal/ Agreement for reappointment Management Structure of Holding Company Holding of Structure Management Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights members ofthecommittee. is electedfrom amongtheindependentdirectors whoare of membersmustbeindependentdirectors. Thechairperson independence andneutralityoftheCommittee,majority who are appointedfrom among thedirectors. To ensure the The Committeeshouldhavenomore thanﬁ ve members, assessment ofthestateinvestedassets,andothertasks. ment ofassetmanagementpoliciesfortheNKSJGroup, the Group, theInvestmentCommitteeisinvolvedinestablish- To improve theassetmanagementcapabilitiesofNKSJ 24 compliance measures. ness operations,andare workingtoimplementeffective pliance asabasicrequirement fortheadministrationofbusi- of theGroup executivesandemployeesnowrecognize com- Code ofConductasgroup-level policies.Inlinewiththese,all Policy onComplianceandtheNKSJGroup Compliance The NKSJGroup hasformulatedtheNKSJGroup Basic 1. FormulationofBasicPoliciesandCodeConduct and socialresponsibility. public missionofinsuranceandﬁ nancial servicebusinesses corporate ethics,basedonaconstantrecognition ofthe ance withlaws,otherapplicablerules,societalnormsand Group conducts appropriate corporateactivitiesincompli- vices andabsolutepeaceofmind.Toward thisend,the society byproviding customerswiththehighestqualityser- The NKSJGroup aimstobeacorporategroup trustedby to improve related structures. to monitorandverifytheGroup’s control systemsandwork Underthisbasicpolicy, theCompanycontinuouslyseeks tively improved. iscontinuallyreinforcedcorporate governance andqualita- business operationsare appropriately performedandthat Systems forthepurposeofensuringthatNKSJGroup’s Controlthe BasicPolicyonDevelopmentofInternal NKSJ Holdings’Board ofDirectors hasresolved toestablish

Compliance Control DevelopmentofInternal Systems NKSJ Holdings, Inc. undertaken byindividualcompaniesacross the Group. up-to-date informationandextendingeffective initiatives effectiveness of group-level complianceactivitiesbysharing NKSJ HimawariLife.Thiscommitteeworkstoimprove the ance departmentheadsfrom SompoJapan,Nipponkoaand department headsfrom NKSJHoldings,aswellcompli- panies. Membersofthecommitteeincludedirectors and systems andimplementationofmeasures bytheGroup com- and checkingrelated matters,suchasthedevelopmentof the effectiveness ofcompliancesystemsbydeliberatingon A ComplianceCommitteehasbeenestablishedtoimprove 3. ComplianceCommittee Group tofacilitatetheresolution ofcomplianceissues. mation aboutotherinsurancecompanies’initiativeswithinthe improvement asnecessary. NKSJHoldingsalsoshares infor- including theprogress made, andgivesinstructionsfor year. NKSJHoldingsmonitorsinitiativesbythesecompanies, issues byformulatingcomplianceprograms foreachbusiness Insurance companiesintheNKSJGroup worktoresolve 2. control systemstoensure theyoperateautonomously. Company continuouslyseekstoimprove theGroup’s internal contributing totheachievementofmanagementtargets.The ities andaskforimprovement ofanyissues,withtheaim Auditstoverifytheiroperational activ- Basic PolicyonInternal auditsasenactedinthe NKSJGroupnies conductinternal audit department,andindependentauditors.Group compa- NKSJ Holdingsisauditedbyitscorporateauditors,internal actions andinitiativesdesignedtoprevent recurrences. tives, andtomaximizetheeffectiveness ofcustomer-related to implementcountermeasures basedonmultipleperspec- Holdings. Insuchcases,theentire Group willworktogether including seriousbreaches, toreport themattertoNKSJ company affected byseriouscompliance-related problems, A systemhasbeenestablishedrequiring anyoftheGroup 4. RespondingtoSeriousBreaches Internal and External Audits andExternal Internal Promotion ofCompliancethrough CompliancePrograms Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information 25 25 NKSJ Holdings, Inc. Corporate Auditors Kazufumi Yunome Eiichi Yoshimitsu Independent Corporate Auditors Koichi Masuda Makiko Yasuda Motoyoshi Nishikawa Executive Ofﬁ cer, General Manager, cer, Executive Ofﬁ Corporate Management Department Nishiwaki Yoshikazu Independent Directors Akira Gemma Seiichi Asaka Sumitaka Fujita Kawabata Yoshiharu George C. Olcott Akira Matsuda

George C. Olcott, Shinji Tsuji, Yuichi Yamaguchi, Kazufumi Yunome Yamaguchi, Yuichi George C. Olcott, Shinji Tsuji, Board of Directors, Offi cers and Auditors and cers Offi of Directors, Board Directors, Executive Offi cers Executive Offi Directors, Yamaguchi Yuichi Keiji Nishizawa Director, Managing Executive Offi cer Managing Executive Offi Director, Takata Toshiyuki Director, Senior Managing Executive Offi cer Senior Managing Executive Offi Director, Shinji Tsuji Kengo Sakurada Masaya Futamiya Director, Representative cer and Executive Offi President Standing from left: Yoshikazu Nishiwaki, Eiichi Yoshimitsu, Keiji Nishizawa, Toshiyuki Takata, Akira Matsuda, Motoyoshi Nishikawa, Makiko Yasuda, Koichi Masuda, Koichi Nishikawa, Makiko Yasuda, Akira Matsuda, Motoyoshi Takata, Nishizawa, Toshiyuki Keiji Nishiwaki, Eiichi Yoshimitsu, left: Standing from Yoshikazu left: Seated from Fujita Kawabata, Seiichi Asaka, Kengo Sakurada, Masaya Futamiya, Akira Gemma, Sumitaka Yoshiharu Representative Director, Representative cer Chairman and Executive Offi (As of July 1, 2012) (As of July Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 4. 3. 2. 26 risk managementsystems. are eachfulfi lling specifi c roles anddevelopingappropriate In theNKSJGroup, NKSJHoldingsandGroup companies 1. management systems: The NKSJGroup hasdevelopedthefollowingrisk this CapitalStrategy. ing fi when risksemerge.Basedonthisriskmanagementframework,theGroup aimstoenhancecorporatevaluebybalanc- and systemshavebeenestablishedtoassessevaluaterisks,appropriately control risks,andaccuratelyrespond of theGroup asawholewellindividualGroup companies.Ruleshavebeenestablishedbasedonthisbasicpolicy The NKSJGroup hasestablishedtheNKSJGroup BasicPolicyonRiskManagementtoappropriately managetherisks Risk Management,CapitalStrategyandAssetManagement

Group’s operationalfoundationintimesof emergency. ters, andensured thestabilityandsoundnessof tions duringtimesofcrisis,includingmajornaturaldisas- continuity andearlyrestoration oftheGroup’s keyopera- NKSJ Holdingshasestablishedsystemstoensure the reported toNKSJHoldings. matters thatrequire itsapproval andmatters thatmustbe their businessactivities.NKSJHoldingshasalsosetforth risks according tothe content,scale,andcharacteristicsof ment frameworks,includingassessmentandevaluationof Group companies are required toestablishriskmanage- capital resources. sticks, aggregating them, andcomparingtheresults with ous risksthataffect Group operationswithuniformyard- NKSJ Holdingsshallmanagerisksbymeasuringthevari- To maintainsuffi cient netcapitalcommensurate withrisk, the current statusof riskmanagement. systems andmethodsofriskmanagementmonitor lished theRiskManagementCommitteetodeliberateon intragroup riskcontagion. NKSJHoldingshasalsoestab- the Group and risksinherent toagroup structure, suchas comprehensively manage thevariousrisksthatexistwithin NKSJ Holdingshasestablishedanorganizationalunitto To manageoperationswithdueconsiderationfortherisks, Roles ofNKSJHoldingsandGroup Companies Risk ManagementSystemsintheNKSJGroup NKSJ Holdings, Inc. nancial soundness,capitaleffi ciency andshareholder returns.TheGroup’s assetmanagementisconductedwith employees. Management anddisseminatingthemtotheirexecutives consistent withtheNKSJGroup BasicPolicyonRisk by establishingtheirownbasicpoliciesonriskmanagement ple ofselfresponsibility. Group companiesmanagetheirrisks ate soundlyandappropriately inaccordance withtheprinci- their ownriskmanagementsystemstoensure thattheyoper- As independentlegalentities,Group companiesestablish 2. Therole ofGroup companies and mattersthatmustbereported toNKSJHoldings. by meansofsettingforthmattersthatrequire itsapproval ters thatcouldhaveamaterialimpactonGroup management have beenalsoestablishedfortheprompt reporting ofmat- management systemsoftheGroup asawhole.Systems employees withintheGroup toestablishanddeveloprisk been establishedanddisseminatedtoexecutives TheNKSJGroup BasicPolicyonRiskManagementhas gion. Thedetailsfollow. individual Group companiessuchasintragroup riskconta- risks inherent toagroup structure andunmanageablefor and managerisksoftheGroup asawhole,includingthe NKSJ Holdingshasestablishedsystemstoaccuratelyassess 1. Therole ofNKSJHoldings Group’s corporate value. risk management(ERM)system designedtomaximizethe Basic Policyalsosupportsour developmentofanenterprise cial soundnessthrough appropriate riskmanagement.The exposure, avoidunforeseen losses,andthereby secure fi nan- oureffortsgoverns toaccuratelyassesstheGroup’s risk on RiskManagementoutlinedasfollows.ThisBasicPolicy NKSJ HoldingshasestablishedtheGroup BasicPolicy In accordance withtheNKSJGroup managementpolicy, NKSJ Group BasicPolicyonRiskManagement Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

27 NKSJ Holdings, Inc. Asset Management 3. Increasing shareholder returns shareholder 3. Increasing by paying a primarily t to shareholders aim to return profi We war- by stock buybacks where stable dividend supplemented ranted by capital conditions. for a total payout ratio of 50%, set a medium-term target We returns amount to 50% of adjusted such that total shareholder business). t (excluding the domestic life insurance profi key investment as the group’s recognizes The NKSJ Group capabilities investment By strengthening strategic area. our investment we aim to improve various measures, through performances. 1. The Investment Committee advisory organ to The Investment Committee stands as an com- The committee of Directors. the NKSJ Holdings’ Board of the and the chairman and majority ve directors, prises fi independence. to ensure independent directors members are in a wide manner of The Investment Committee is involved invest- the Group’s the investment activities as it establishes activities of the ment strategy and monitors investment The committee is expected to give advice and recom- Group. as needed. of Directors mendations to the Board investment capabilities 2. Strengthening operations for managing office front transferred have We Japan Sompo investments from securities held as pure and Nipponkoa to Sompo Japan Nipponkoa Asset Management. ces of both compa- offi of the front the integration Through businesses, we will enhancenies and synergies with third-party of asset management capabilities. ciency and raise the effi 3. Management of strategic-holding stocks selling our strategic-holding stocks in continuously are We our with the plan that we established to reduce accordance strategic-holding stocks by 300 billion yen (MTM basis) over years ending FY2012. In FY2011, the net reduction the three to ¥127.6 billion for of strategic-holding stocks was brought the two companies combined. Returns Increasing Shareholder Shareholder Increasing Soundness Maintaining Financial ciency Effi Improving Capital Capital Improving Capital Strategy 2. Improving capital effi ciency capital effi 2. Improving integration synergies. t by realizing will enhance adjusted profi We generated through of the risk buffer will allocate part We of strategic-holding stocks to investments in the reduction businesses such as overseas M&As. growth 1. Maintaining fi nancial soundness nancial 1. Maintaining fi conduct risk and capital management on a group-wide We rating of AA. basis, with a target credit strategic-holding stocks continuously. will reduce We The NKSJ Group aims to enhance corporate value by bal- The NKSJ Group nancial soundness,” imperatives: “maintaining fi ancing three shareholder and “increasing ciency,” capital effi “improving returns.” 2. Comprehensive risk management 2. Comprehensive various risk expo- In addition to accurately assessing the Group’s by Holdings shall manage risks comprehensively NKSJ sure, such as contagion, structure, to a group monitoring risks inherent risk. NKSJ Holdingsuneven distribution, and concentration of companies establish systems toshall also mandate that Group in accor- that they operate soundly and appropriately ensure dance with the principle of self responsibility. 1. Capital management 1. Capital nan- establish a framework to maintain fi NKSJ Holdings shall maximize corporate value. This frame- cial soundness and capital management by means work centers on appropriate the economic risk capital, the Group’s of a comparison of with uniform various risks measured of the Group’s aggregate net capital (meaning the differ- and the Group’s yardsticks, and liabilities on an economic value ence between assets basis). Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 28 effectivegovernance, riskmanagement,andcompliance. of ourbusinessoperationsonhighlytransparent systemsof insurance andfi nancial services,wewillbasethedevelopment Recognizing oursocialresponsibilities andpublicmissionin 4. HighlyTransparent Systems Governance cy andbuildastableoperatingbase. all areas ofour operations,wewillenhancebusinesseffi cien- By maximizingtheGroup’s strengths through collaborationin 3. PursuitofBusinessEffi Group andenhancecorporatevalue. earnings investing businessresources ingrowth areas tobolster We willendeavortorealize ourGroup bystrategically Vision 2. highest qualityofservice. the qualityofallouroperationalprocesses andproviding the We aimtobethecustomers’numberonechoicebyraising 1. PursuitofServiceQuality through realization ofintegration synergiesandstrategicallocationofmanagementresources togrowth areas. The NKSJGroup pursuessustainablegrowth andfurtherimprovement ofourcorporatevaluebyexpandinggroup income Management Plan Growth Enhancement ofCorporateValue through Sustained Group BasicManagementPolicies NKSJ Holdings, Inc. Profit Driver=DomesticP&C Insurance Business ciency while Improving Earning Power Growth Areas Investment in Strategic Y09FY2015 FY2009 Growth byMultipleDrivers Domestic Life Overseas Insurance Insurance Profit Increasein Growth Areas Reallocating Management Resources byImproving Our BottomLine Continuously together withitsemployees. order to create avibrantandopenorganizationthatgrows We willactivelystrivetoinvigoratetheGroup’s organizationin 6. Creation Workplace ofaVibrant and medicalcare. areas ofhighsocialimpactsuchastheenvironment, health, stakeholders, utilizingtheGroup’s core businessstrengths in build asustainablesocietythrough activedialoguewith We willfulfi ll ourcorporatesocialresponsibilities andhelpto 5. Fulfi aims tocreate asustainable growth cycle. ed bymultipleprofi t drivers.Inthisway, theNKSJGroup ing ingrowth businesses byutilizingenhancedprofi t expand- a more balanced businessportfolio.Moreover, weare invest- overseasinsurancebusinesses,andworkingtoestablish promising areas suchasdomesticlifeinsuranceand the Group. Also, weare shiftingmanagementresources to domestic P&Cinsurancebusiness,whichisaprofi t driverof We aimtofurther improve ourprofi capacityinthe t-earning

Basic Strategies llmentofOurSocialResponsibilities Sustainable GrowthCycle P&C Insurance Other Services Domestic Life Financial and

Domestic Overseas Insurance Insurance Sustainable Growth Sustainable Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

29 29 (Plan) (Billions of yen) FY2015* NKSJ Holdings, Inc. NKSJ Holdings, Inc. FY2012 (Forecast) Sonpo 24 Overseas subsidiaries Healthcare Business Healthcare Sompo Japan DIY Life Saison Automobile & Fire Risk Consulting Business d Nipponkoa. (As at July 2012) 1.20.1% 53.7 2.7% Over 7% 160.0 (7.6) (4.3) 4.0 (19.7) 6.3 20.0 (71.3) (33.2) 81.0 (Actual) FY2011 100.0 85.0 55.0 Deﬁ ned-contribution Pension Business ned-contribution Pension Deﬁ Overseas Insurance Business (Direct Insurance Business) Insurance (Direct 4.2% 2.4 (2.7) 80.7 21.3 59.8 (Actual) FY2010 Nipponkoa Sompo Japan Prime Assistance Asset Management NKSJ Himawari Life Sompo Japan Nipponkoa Domestic P&C Insurance Business Domestic P&C Insurance Financial and Other Services (Assistance Business) (Asset Management Business) Domestic Life Insurance Business Financial and Other Services Total Domestic P&C Insurance Domestic Life Insurance Overseas Insurance We are revising our management plan according to such changes in the operating environment as the full merger of Sompo Japan an as the full in the operating environment to such changes our management plan according revising are We NKSJ Holdings Pursuing Medium-term Financial Targets Progress in Integration of Group Subsidiaries of Group in Integration Progress

Both companies support group-wide growth as a directly owned subsidiary of NKSJ Holdings. owned subsidiary of NKSJ as a directly growth group-wide Both companies support Prime Assistance Inc. was established in April 2012 to conduct the assistance service business. was established in April 2012 to conduct Prime Assistance Inc. In October 2011, NKSJ Himawari Life Insurance, Inc. was established through the merger of Sompo Japan Himawari Life and the merger of Sompo Japan through Himawari Life Insurance, Inc. was established In October 2011, NKSJ Nipponkoa Life. Adjusted Consolidated ROE Adjusted Consolidated Profi t Adjusted Consolidated Profi * Forecast of the Medium-term Management Plan announced in September 2011 * Forecast Note: FY2011 adjusted consolidated earnings amounted ¥1.2 billion. Large earnings of domestic life insurance made up for growth to natural disasters worldwide. the loss of the domestic P&C insurance and overseas insurance businesses due Structure of the NKSJ Group Structure • • smoothly. companies progressed of group The merger and integration • Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights Scope ofAggregation ofAdjustedIncome 30 Financial andOtherServices Overseas Insurance Domestic LifeInsurance Domestic P&CInsurance Net incomeasreported infi nancial statements rate movements Growth inembedded value(EV)–capitalaccounttransactions(e.g.,equityissuance)changesinEVattributabletointerest losses onsecuritiessalesandimpairment(aftertax)–extraordinary items Net income+provisions forcatastrophic lossreserve (aftertax)+provisions forpricefl uctuation reserve (aftertax)–gain Calculation ofAdjustedConsolidatedProfi t oa ¥100.0billion ¥(71.3)billion Total Total =0.1% +Lifeinsurancesubsidiaries’ EV ¥531.1billion Adjustedconsolidatedprofi t ¥1.2 billion ¥148.3billion ¥(60.1)billion Note: Consolidatednetassets(excludinglifeinsurancesubsidiaries’assets)¥956.3billion +Catastrophic lossreserve (after tax) ¥398.4billion+pricefl uctuation reserve (aftertax) ¥16.5billion - - Growth inembedded value(EV) - - + + Net income Adjusted ConsolidatedProfi t ResultsforFiscal2011 NKSJ Holdings, Inc. Cptlacuttascin eg,eut sune — ¥48.3billion ¥(46.8)billion ChangesinEVattributabletointerest ratemovements Capitalaccounttransactions(e.g.,equityissuance) Extraordinary items(change inthecorporatetaxrate) Overseas Insurance,FinancialandOtherServices: Domestic LifeInsurance: Domestic P&CInsurance:

an/osso euiisslsadScrte maretlse atrtx ¥10.3billion Gains/losses onsecuritiessalesandSecuritiesimpairmentlosses(aftertax) rvsosfrpieflutainrsre(fe a) ¥(0.1)billion ¥(47.6)billion Provisions for price fl uctuation reserve (aftertax) Provisions for catastrophic lossreserve (after tax) Adjusted ConsolidatedROE: Domestic LifeInsurance: Domestic P&CInsurance: The denominatoristheaveragebalanceat end/startofeachfi scal year. After-tax amountsare calculatedbydeductinganamountbasedontheeffective taxratefrom thebalanceofeachreserve. Sonpo 24,SaisonAutomobile&Fire, SompoJapanDIYLife,fi nancial services,healthcare, etc. Overseas insurancesubsidiaries Nipponkoa Life) NKSJ HimawariLife(FY2010,sumofresults forSompoJapanHimawariLifeand Sum ofnon-consolidatedresults forSompoJapanandNipponkoa s/ Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

31 NKSJ Holdings, Inc. We will maintain a high level of transparency and clarity in and maintain a high level of transparency will We and engage in active dialogue with our stake- disclosure holders. work in partnership with our stakeholders in an will We and social issues to make environmental to resolve effort the world a better place. We will provide environment-friendly products and servic- products environment-friendly will provide We “Eco with our stakeholders, we will promote es. Together auto- as the utilization of recycled & Safety Drive” as well throughout purchasing our green mobile parts, upgrade education our value chain, and enhance our environmental initiatives. Five CSR Material Issues of the NKSJ Group Group Five CSR Material Issues of the NKSJ To actively engage with our stakeholders to share actively engage with our stakeholders to share To favorable outcomes and build trust.

(1) (2) the CSR material has revised 2012, the NKSJ Group From dialogue with experts on the following 5 issues through issues. Material Issue 1 Safety and Security for the Society Providing Material Issue 2 Issues Global Environmental Tackling ~Focusing on Climate Change~ Material Issue 3 Sustainable and Responsible Financial Services Providing Material Issue 4 Community Involvement and Development ~Partnership with NGOs~ Material Issue 5 Diversity and Promoting Developing Human Resources (3) 3. ll its corporate social responsibilities and contribute to the realization of a resilient of a resilient to the realization and contribute responsibilities its corporate social ll We will minimize our environmental footprint through footprint through will minimize our environmental We gas emissions. greenhouse to reduce efforts group-wide focused on valuing biodiversity and actively will remain We society and of a recycling-based engage in the creation of ecosystems. the protection Our Medium-term CSR Objectives The NKSJ Group’s Approach to CSR (Basic Policy) Approach The NKSJ Group’s To seek and assume environmental leadership by tack- seek and assume environmental To and other envi- ling climate change, loss of biodiversity, challenges. ronmental To become a highly valued corporate group by creating by creating become a highly valued corporate group To and sustain- a safe, secure, new social values towards a variety of we will provide In particular, able society. social challenges in solutions designed to address and the environment. such as healthcare areas We will provide insurance and ﬁ nancial products and ser- products nancial insurance and ﬁ will provide We vices, and make investments and loans that meet the needs of society.

The NKSJ Group’s Approach to CSR Approach Group’s NKSJ The Society on Impact Our The NKSJ Group has pledged to fulfi has pledged to Group The NKSJ approaches activities. Described below are business based on its core drawing on strengths by and sustainable future be found in “Corporate about our initiatives can medium-term priorities. Specific information to our goals and 2012. in September scheduled to be released 2012” report Responsibility Communication (1) (2) 2. (1) will further enhance our corporate citizenship activities. (2) We 1. as the NKSJ responsibility corporate social In addressing and norms of international regulations we respect Group, business by high ethical standards conduct and undertake forward-looking while actively engaging stakeholders through and social con- environmental integrate broad dialogue. We business operations, including tack- siderations into our core challenges such as climate change and ling environmental and for human dignity and diversity, biodiversity loss, respect community involvement. proactive in the insurance business culti- strengths Drawing on core we will continue to contribute vated over our 120-year history, values, new create a sustainable society, realizing towards safety and security. and provide Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights or signatories,alsotheSRIfunduniversesandindexesinwhichweare included. of sustainabilitychallengesanddeliverreal benefi ts tostakeholders.Listedbeloware maininitiativesinwhichweare parti organizationsandinitiativessignifimember ininternational cant, duetothepotentialmakelastingcontributionsso a core activityitenablesustocontinuallyimprove ourCSRinitiativesandachievetangibleresults. We regard participation The NKSJGroup seesengagementwithawiderangeofstakeholdersasessentialtofulfi ll itscorporatesocialresponsibilities. 32 emissions reduction targetundertheKyoto also helpingJapantomeetitsgreenhouse gas credits Nipponkoais totheJapanesegovernment, emissions. Bydonatingpurchased emissions purchasing carboncredits tooffset unavoidable emissions byatleast20%(versusFY2006)and CO July 2008,statingitsintentiontoachievenetzero Nipponkoa issuedaCarbonNeutralDeclarationin Carbon NeutralDeclaration Sompo JapanNipponkoaAssetManagement) become asignatoryin2012.(SompoJapan, Japan NipponkoaAssetManagementfollowedto tory totheseprinciplesin2006,andSompo Japanese insurancecompanytobecomeasigna- investment decisions.SompoJapanwasthefi rst nance (ESG)issuesintoaccountwhenmaking they willtakeenvironmental, social,andgover- FI) asadeclarationbyfi nancial institutionsthat Environment Programme FinanceInitiative(UNEP PRI wasformulatedbytheUnitedNations Principles forResponsibleInvestment(PRI) General Kofi Annan.(SompoJapan,Nipponkoa) response toaproposal bythenUNSecretary- environment, andanticorruption.Itwasinitiatedin addressing theareas ofhumanrights,labor, the into bettercorporatecitizensbyvoluntarily and businessthatmotivatescompaniestogrow UNGC isapartnershipinitiativebetweentheUN United NationsGlobalCompact(UNGC) services inpursuit ofsustainabledevelopment aspects ofthefi nancial sector’s operationsand integration ofenvironmental considerationsintoall launch in1992,theinitiativehaspromoted the from 40countries(asofMarch 2012).Sinceits work ofapproximately 200fi nancial institutions fiUNEP FIisaninternational nancial sectornet- Initiative United NationsEnvironment Programme Finance Protocol. (Nipponkoa)

2 Initiatives Stakeholder Engagement emissionsbyﬁ scal 2012bycuttingitsCO NKSJ Holdings, Inc. (UNEP FI) 2

environmental protection. that isconducivetobotheconomicprogress and other activities.(SompoJapan) through livelydebate,policyrecommendations, and the environment andsustainabledevelopment tries were involved,providing industryleadershipon approximately 200companyleadersfrom 35coun- association ofcompanies.AsMarch 2012, WBCSD, establishedin1995,isaCEO-ledglobal Development (WBCSD) World BusinessCouncilforSustainable board ofJapanin2007.(SompoJapan) an institutionalinvestorandjoineditsadvisory Sompo Japanhasbeenamembersince2005as gas emissions,spurringactiononclimatechange. change strategiesanddisclosetheirgreenhouse tiative encouragesbusinessestoadoptclimate ini- leading institutionalinvestors.Thisinternational CDP isacollaborativeinitiativebytheworld’s Carbon Disclosure Project (CDP) signatory inJune2012.(SompoJapan) the developmentofprinciplesandbecamea business operations.SompoJapancontributedto will takeESGissuesintoaccountthrough their as adeclarationbyfi nancial institutionsthatthey Environment Programme (UNEPFI)inJune2012, PSI wasformulatedbytheUnitedNations Principles forSustainableInsurance(PSI) fi nance inJapan.Sompo JapanandNipponkoa aimed atexpandingenvironmentally-friendly posed establishinga“Japaneseversion ofPRI” Environmental CouncilinJune2010,which pro- on Environment andFinance”undertheCentral recommendation madebythe“ExpertCommittee These principleswere formulatedbased on the Sustainable Society(PFA) Principles forFinancialActiontowards a Management andfi ve othergroup companies). Himawari Life,SompoJapanNipponkoaAsset Holdings, SompoJapan,Nipponkoa,NKSJ bers becamesignatoriestotheseprinciples(NKSJ December 2011,atotalof10NKSJGroup mem- pating asmembersofthedraftingcommittee.In were activelyinvolvedintheformulation,partici- and isJapan’s fi rst SRIindex. Index coversJapaneseESGleading companies SociallyResponsible InvestmentMorningstar Index SociallyResponsibleInvestment Morningstar ment universeforEuropean institutionalinvestors. The tworegisters are asociallyresponsible invest- Ethibel ExcellenceInvestmentRegister Ethibel PioneerRegisterand corporate responsibility standards. performance ofcompaniesthatmeetrecognized responsible investmentindexesthattracksthe FTSE4Good IndexSeriesisagroup ofsocially FTSE4Good IndexSeries assessed from theirESGissues. panies thatare leadersinsustainability, as DJSI World isaleadingglobalSRIindexofcom- (DJSI World) Dow JonesSustainabilityIndexes SRI funds(asofApril2012). following SRIindexesandalsoasacandidatefor NKSJ Holdingswasselectedtobeincludedinthe

SRI Indexes Inclusion inSRIFundUniversesand cipants lution as a As Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

33 NKSJ Holdings, Inc. Minimizing the Impact on Biodiversity Minimizing

companies, along with 36 NKSJ Group NKSJ Holdings, Inc., “Japan Business and Biodiversity participated in the inception in October 2010. Participation Partnership” since its to pledge to the world that the NKSJ in the Partnership aims operations to advance agging efforts will make unfl Group conservation, and encourage each which support biodiversity such business practices that company to implement Group paper conservation as reducing contribute to biodiversity the value chain. Withconsumption throughout the selection makes NKSJ Group of web-based clause by customers, the to protect activities promoting donations to NGOs that are living and species are endangered where the environment development projects. assistance to natural resource provides vari- Sato, Chairman of Sompo Japan, provides Masatoshi Chairmanship of including the in industry, ous leadership roles Conservation. Committee on Nature the Keidanren who can develop human resources Another priority is to The NKSJ of a sustainable society. contribute to the creation implements a range of initiatives based on the concept Group (ESD). This of Education for Sustainable Development education and environmental projects includes forestation carried out in cooperation with local governments programs employees and individual insurance and communities, group developing their are agencies. Sompo Japan and Nipponkoa elds. jointly in each others’ fi programs forestation seeks to offset these activities, the NKSJ Group Through will also contin- We the impact of heavy paper consumption. ue to inform local communities about the importance of bio- for the many our appreciation and to express diversity, brings to people and society. ts that nature benefi Responding to Climate Change Responding

Strategy on Global Environmental Issues—Risks and Opportunities and Issues—Risks Environmental on Global Strategy that could have a wide major problem Climate change is a all economic and social activities in the ranging impact on individual citizens to govern- from All stakeholders, future. to this corporations, need to respond ments and business a long-term perspective. Financial from issue globally and to play an important role expected increasingly institutions are that climate change recognizes The NKSJ Group in this area. for companies. both risks and opportunities will create of major losses caused by extreme Climate risk, in the form of climate change, weather events attributable to the effects insurance compa- is a serious management issue for P&C insurance in society, nies. Because of their important role to adapt to cli- companies have a fundamental responsibility to nancial structures their fi mate change by strengthening needed to meet insurance payments, the resources provide capable of providing and by establishing service structures in the event of disasters affecting insurance payouts promptly large areas. also business are there however, Next to managing risk, for adaptation mea- opportunities. For example, our support vulnerable especially developing countries, which are in sures to of climate change, includes R&D relating to the effects Index as Weather innovative risk finance methods, such to support consultation services also offer Insurance. We gas emissions. their greenhouse businesses in reducing to climate these responses regards The NKSJ Group in the core strengths change as opportunities to draw on its nance and risk management, and business of insurance, fi new solutions. apply these to create Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights severely impactsoncrop yields.Itisaimedtohopefully planting periodinJuly, whichistheperiodwhendrought to payoutinsurancepaymentsatanearlystageduethe three monthsfrom JulytoSeptember. Thismakesitpossible two monthsAugusttoSeptember, insteadofthecurrent the basisofaccumulatedprecipitation ofJulyaloneorthe In2012,theproduct wasrevised topayoutinsuranceon applications. ed to5provinces andtheresult ofsalesreached upto6,173 Inthesecondfi scal year, 2011,thesalesarea wasexpand- to September. is basedontheresults ofaccumulatedrainfalldatafrom July and highlypraisedbyThaifarmers,astheinsurancepayment insurance applications.Theproduct iseasytounderstand Weather Index Insurance,surpassingourtargetfor1,000 Inthefi rst fi scal year, 2010,1,158farmersappliedforthe (BAAC). from the BankforAgriculture andAgriculturalCooperatives (Thailand) offers thisproduct tofarmersthattakeoutloans Cooperation (JBIC)in2007.SompoJapanInsurance collaborating withtheJapanBankforInternational research intoriskfi nancing methodsforclimatechangewhile SompoJapanGroup developedthisproduct basedonthe mate change. part ofapilotproject toconfi rm adaptationmeasures forcli- to reduce damagecausedbydrought forricefarmers,as east ThailandinJanuary2010.Thepurposeofthisproduct is the Weather IndexInsuranceinKhonKaenProvince innorth- Sompo JapanInsurance(Thailand)Co.,Ltd.beganselling 34 Briefi ng sessionsfor farmersinThailand Initiatives onGlobalEnvironmental Issues

sales tonineprovinces Thailand innortheastern Weather IndexInsuranceforDrought Risk:Expanding NKSJ Holdings, Inc. development bycreating newjobs. emerging countries,whichcontributestotheireconomic supplying fundsfornaturalenergydevelopmentprojects in Nipponkoa playsarole inreducing Greenhouse Gasand Nations, thereby fundingtheseprojects. Inthisway, ral energydevelopmentprojects certifiedbytheUnited purchase ofemission reduction credits generated from natu- friendly options,Nipponkoadonatesapreset amounttothe Whenpolicyholderschooseoneoftheseenvironmentally- accident. parts insteadofnewforvehiclerepairs followingan motive insurancepolicyholderstheoptionofusingrecycled our websiteinsteadofonpaper. Nipponkoaalsogivesauto- types ofinsurance,allowingpolicyholderstoviewthemon option forthetermsandconditionsofautomotiveother products and services.Theseefforts includeapaperless ment Nipponkoastrivestoprovide environmentally friendly As apartofitsefforts toreduce itsburden ontheenviron- possibility ofnewproducts fordifferent crops andregions. project, SompoJapanGroup willcontinue toexaminethe Utilizingfeedbackfrom farmersandexperienceonthis provinces in2012. Thesalearea wasalsoexpandedto9provinces from 5 farmers inThailand. provide agreat effect inmitigatingeconomiclossesforrice

Services, and Our International Contributions Services, andOurInternational Offering Environmentally-Friendly Products and Photovoltaic powergenerationproject Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

35 NKSJ Holdings, Inc. 36 47 48 96 117 119 Contents Solvency Margin Ratios of (Unaudited) Principal Consolidated Subsidiaries Financial Review Report of Independent Auditors Consolidated Financial Statements Balance Sheets and Statements of Income of (Unaudited) Principal Consolidated Subsidiaries Solvency Margin Ratio of Basis (Unaudited) NKSJ Holdings, Inc. on a Consolidated Financial Section Financial Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 36 Consolidated ResultsofNKSJHoldings For theyearendedMarch 31,2012 Financial Review Financial Section NKSJ Holdings, Inc. (Billions ofyen) FY2011 Breakdown ofUnderwritingProfitDomesticP&CInsuranceBusiness Factors regarding domesticP&Cinsurancebusinessunderwritingprofi t are asfollows. ¥92.2 billion,mainlyduetothenegativeimpactofnaturaldisastersworldwideandataxcodeamendmentinJapan. of lifeinsurancepremiums to¥250.1billion. However, NKSJrecorded ordinary lossof¥51.8billionandnet steadily grew. Thiswasattributabletoa2.1%increase ofnetpremiums writtento¥1,973.7billionanda5.0%increase In the2011fi scal year(April1,2011through March 31,2012)consolidatedresults oftheNKSJGroup, ourtopline (Billions ofyen) FY2011 Ordinary ProfitbyBusinessDomains e noe(os 1.)(22 7.)(,1)(956) (547) (1,113) (625) 2,036 (79.3) (45.3) 33,673 (92.2) (51.8) 168.8 (12.9) (6.4) 2,790.5 2,621.6 Net income(loss) Ordinary profi t (loss) Ordinary income (70) (60) (50) (40) (30) (20) (10) (80) (70) (60) (50) (40) (30) (20) (10) 0 ieisrnepeim 3. 5. 1. 309 144 3,019 487 12.0 23,817 250.1 40.4 238.1 1,973.7 1,933.2 Life insurancepremiums Net premiums written(P&Cinsurance) 0 andFloodinginThailand * Specialfactors:GreatEastJapanEarthquake InsuranceBusiness Underwriting Profit impact ofnatural Domestic P&C Mainly dueto excludingSpecialFactors disasters automobile insurance (66.1) Underwriting Loss natural disasters high lossratioin and impactof Mainly dueto (55.5) and dividendincome Insurance Business Mainly frominterest Investment Profit and realizedgain Domestic P&C on securities +61.7 Insurance Business Mainly duetoreversal Domestic P&C Japan Earthquake of thecatastrophic loss reserve Great East Other +0.6 +51.3 Y00F21 FY2011 FY2011 FY2010 InsuranceBusiness Domestic Life +1.1 Due toprovisionfor outstanding losses Mainly duetoimpact in Thailand Flooding reserves offlooding (61.9) in Thailand Insurance Overseas Business iloso e MillionsofU.S.dollars Billions ofyen (16.5) hneChange Change Adjustments, etc. Consolidation Mainlydueto consolidation adjustments Other (32.6) Underwriting (66.1) Profit

Ordinary (51.8) Profit Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

37 (92.2) Net Income NKSJ Holdings, Inc. Nipponkoa. (3.9) adjustments Consolidation Adjustments, etc. Billions of yen Millions of U.S. dollars Other Consolidation Domestic P&C Domestic Life Overseas Financial Services (17.2) Business Due to impact of flooding in Thailand Overseas Insurance 79.4 75.7 (3.6)79.4 75.7 (43) 914 268.9 326.5 57.6 268.9 326.5 3,941 695 (77.1)994.8 917.7 (930) 11,074 (7.6) FY2010 FY2011 FY2011 Amount Amount Change Amount Change 100 (71.3) (19.7) (11.1) Due to Domestic Life merger expenses Insurance Business (2.7) 2.4 59.8 21.3 FY2010 FY2011 (60.1) Total 80.7 Total 1.2

the corporate income tax rate Domestic P&C and reduction of of natural disasters which, life insurance subsidiaries’ net assets Insurance Business Mainly due to the impact of which, unrealized gains on securities of which, unrealized available for sale (1)-(2) Consolidated net assets (excl. life insurance subsidiaries' net assets) (3) (2) of (4)=(1)-(2)-(3) 725.9 (134.7) 591.1 7,133 (1,626) 0 0 50 (10) (20) (30) (40) (50) (60) (70) (80) (90) FY (50) 100 (100) (1) Consolidated net assets(5)= (net of tax) loss reserve (6) Catastrophic uctuation (net of tax) (7) Reserve for price fl 1,074.3 (8) NKSJ Himawari Life's EV(9)=(5)+(6)+(7)+(8) Adjusted consolidated net assets 993.5 (yen)Adjusted consolidated net assets per share 1,880.7 422.2 16.5 (80.7) 1,924.1 4,531 374.6 16.4 11,989 43.4 4,638 (47.6) 447.0 (0.1) (974) 107 23,219 615.3 4,520 524 168.3 198 (574) — 7,425 (1) — 2,031 (100) *1 Consolidated net assets: stock acquisition rights and non-controlling interests are deducted. are interests *1 Consolidated net assets: stock acquisition rights and non-controlling rate used is non-consolidated basis of Sompo Japan and Tax minus tax effect. is the amount of each reserve gure *2 "Net tax" fi Adjusted consolidated net assets slightly increased to ¥1,924.1 billion and adjusted consolidated net assets per share billion and adjusted consolidated net assets per share to ¥1,924.1 Adjusted consolidated net assets slightly increased subsidiaries made up for the loss of domestic P&C of life insurance (EV) growth amounted to ¥4,638. Embedded Value by natural disasters. The EV of life insur- loss reserve of catastrophic insurance and overseas insurance and decrease 32% of adjusted consolidated net assets, highlighting the around ance subsidiaries was ¥615.3 billion, representing cance of the domestic life insurance business in the Group. signifi growing Along with ordinary profi t, adjusted consolidated profi t amounted to ¥1.2 billion, due to natural disasters in Japan and t, adjusted consolidated profi profi Along with ordinary reforms. overseas as well as domestic taxation system Factors regarding net income are as follows. net income are Factors regarding Domains Net income by Business FY2011 (Billions of yen) (Billions of yen) Adjusted Capital Adjusted Consolidated Profi t Adjusted Consolidated Profi Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 38 Domestic P&CInsuranceBusiness NKSJ Holdings, Inc. insurance. ratio fortheothercategoryimproved 24.4percentage points,owingtoadecrease inclaimspaidforfi nancial guarantee ten/paid netlossratioforalllinesincreased 10.4percentage pointsto81.9%.Meanwhile,atSompoJapan,theloss and othernegativefactors,thewritten/paidnetlossratioforfi re insuranceincreased signifi cantly. OwingtoclaimspaidduenaturaldisastersincludingtheGreat Asaresult, EastJapanEarthquakeandthefl thewrit- ooding inThailand Net claimspaidincreased ¥217.1billionatSompoJapanandNipponkoamainlyduetonaturaldisasterworldwide. Net Loss fi re insuranceandeffect from ahikeinpremiums incompulsoryautomobileliabilityinsurance(CALI). Net premiums writtenincreased ¥34.5billionatbothcompanies,asaresult ofincreases inautomobileinsuranceand Net Premiums Written are shownonanon-consolidatedbasisforeach companyunlessotherwisestated. This sectiondiscussestheresults ofSompo JapanandNipponkoa,thetwocore P&Cinsurancecompanies.Figures FY2011 l ie 549 ,0 23,069 7,609 19,959 6,649 15,459 2,168 11,628 1.8% 1,855952 165463 2,808 2,149960 6.9% 3,109 2,890 34.5 13,310 598 16.7 3,840 1,911.7 297 All linesexcludingCALI 257.7 1.6% 1,091 All lines 6.9% 7,787 1,570 9.9 1.6% Other 5.1 1,798 CALI 630.6 3.8% 2.8 Voluntary automobile (0.7)% 2.0% 79.5 (2.5)% Personal accident 8.7 179.7 78.9 0.9 1.2 232.7 (1.7) Marine 7.0% 38.3(0.9) 24.5 239.5 Fire &alliedlines (0.2)% (1.7)% % 1,281.1 (2.1)% 11.5 1.0% (0.1) 153.7(2.6) 13.7(0.3) 178.1 0.9 49.5 CALI (2.7)% 90.4 2.3% All linesexcluding All lines 5.6% (0.6) 24.6 2.9 Other 7.8 CALI 130.1 automobile 149.0 Voluntary Personal accident Marine Fire &alliedlines fwih iblt 84 09 10%4. 07 . 3. (.)(0.2)% (0.2) 139.0 1.9% 0.7 40.6 (1.0)% (0.9) 98.4 of which,liability fwih iblt ,8 40 1,678 490 1,187 of which,liability ,0. 1. 12%510 . 09%1640 77 1.1% 17.7 1,654.0 0.9% 4.8 551.0 1.2% 12.9 1,103.0 rmusCag hnePeim hne%Cag rmusCag %Change Change Premiums %Change Change Premiums %Change Change Premiums op aa ipno Total Nipponkoa Sompo Japan 4. 54 . 1. 34 . 6. 88 0.9% 8.8 963.6 1.1% 3.4 318.2 0.8% 5.4 645.3 op aa ipno Total Nipponkoa Sompo Japan Premiums Millions ofU.S.dollars Billions ofyen Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

39 Billions of yen Billions of yen NKSJ Holdings, Inc. Billions of yen Total Sompo Japan Nipponkoa Sompo Japan Nipponkoa Change Change Change Change Change Change Change Change Change Change Net claims paid Loss ratio Net claims paid Loss ratio Net claims paid Loss ratio Net claims incurred Loss ratio Net claims incurred Loss ratio 699.2 86.7 70.8%pt390.3699.2 86.7 pt 77.1% 50.3 7.2 10.4 * of which, liability 47.4 12.3 53.4% 12.0 pt 21.2 3.0 56.7% 8.0 pt of which, liability 75.0 3.4 58.1% 2.5 pt of which, liability 51.5 (0.0) 56.8% 0.3 pt 23.4 3.5 61.2% 7.7 pt Fire & allied linesFire MarinePersonal accident automobileVoluntary OtherAll lines 142.6 51.5 395.1 69.9 97.2% (2.3) 16.7 (6.3) 34.1 pt 70.5% 60.6% 1.0 103.2 (1.3) pt (6.6) pt 74.9 72.9% 48.6 211.4 27.7 42.7 116.5% 5.9 pt 1.0 54.6 pt 53.8% (0.3) 5.6 74.6% 27.6 pt 59.7% (0.0) 1.9 pt (1.4) pt 42.3 42.7% 1.0 0.9 pt 58.6% 2.4 pt Fire & allied linesFire MarinePersonal accident automobileVoluntary CALIOther 335.1 All lines 239.8All lines excl. CALI 611.7 99.9 pt 143.6%65.3% 23.7 4.2 3.5 pt 99.7 1.3 12.9 72.2% 60.8%pt 96.3% pt (0.0) (0.2) pt 228.1 1.6 1,204.3 133.8 (33.4) (5.2) 215.4 1,432.5 pt 61.8% 79.7% 217.1 (14.3) 12.6 pt 81.9% 10.4 pt Fire & allied linesFire MarinePersonal accident automobileVoluntary CALIOther 201.9 All lines 145.9 All lines excl. CALI 405.8 70.7 139.2%pt74.8%pt 17.2 3.5 7.7 pt 97.6 1.8 48.3% 16.7 6.4 0.6 133.1 71.9% 59.6% 5.9 pt71.895.6%pt (0.0) pt 156.3 1.2 93.9 97.9% 0.2 pt 783.2 0.4 (5.2) 87.2 205.8 150.8% (5.2) 120.3 29.1 103.3 pt 939.5 (38.7) (4.2) 78.1% 121.5 (0.5) 61.2% 72.8% 10.0 pt 80.6% (24.4) pt 63.8% (0.1) pt 421.1 (1.2) pt 8.1 pt 46.5 95.1 493.0 5.3 82.8% 95.5 63.2% 17.8 pt 84.7% 5.8 pt 15.1 pt FY2011 FY2011 Note) Loss adjustment expenses are included in the calculation of Loss Ratio. Note) Loss adjustment expenses are points to 72.9%. 8.3 percentage loss ratio increased worldwide, the total incurred Mainly due to natural disasters Earned Basis Loss Incurred Written Paid Basis Loss Written Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 40 NKSJ Holdings, Inc. Net Expenses Reduction incompanyexpensesremains steadyandtheexpenseratiocontinuestoimprove. Expense remaining ¥91.8billiondamagestoprofi t, leadingtoadeclineinordinary profi t. underwritten bySompoJapanandNipponkoathrough thereversal ofcatastrophic lossreserves. NKSJchargedthe Losses incurred bythefl ooding inThailandamountedto¥109.8billion.The Group absorbed¥18.0billionoflosses Impact ofFloodinginThailand 2. HouseholdearthquakeinsuranceandCALIare excludedintheabovechart. 1. Lossadjustmentexpensesare includedinthecalculationofLossRatio. Notes) *2. Abovefi gures are theratioofeachamount forunderwritingexpensesagainstnetpremiums written. *1. Abovefi gures are onlyforunderwritingexpenses. FY2011 e xess433 . 3.%(.)p 2. (.)3.%(0.8)pt 35.0% (0.3)pt (1.2) 36.9% 220.6 0.3 (0.6)pt 33.0% 203.5 (0.1)pt 0.0 34.7% 0.2pt 423.3 17.0% 3.2 2.8 (1.0)pt 382.2 18.0% 107.3 (4.1) 0.1pt 113.3 17.1% (0.8)pt 5.8 15.9% 219.5 (5.8) Net expenses(excl.CALI) 203.8 Net expenses Operating, generalandadministrativeexpenses Net commissionsandbrokerage fees (91.8) 109.8 18.0 Impact onordinary profi t Claims paidinFY2011(domestic) Net incurred loss 18.9 (5.1)pt 117.243.7 (0.2)pt 55.4% pt 60.4% 71.9% 4.2 (6.6) 22.31.0 41.8pt (1.3) 62.1% pt 104.5% 97.6 606.5 100.2 245.8 All lines Other Voluntary automobile Personal accident Marine Fire &alliedlines e xess640 12 37 (0.7)pt 33.7% (0.2)pt (1.2) 35.4% 644.0 3.6 585.8 0.2pt 17.1% (0.8)pt 8.7 16.6% 326.9 (10.0) Net expenses(excl.CALI) 317.1 Net expenses Operating, generalandadministrativeexpenses Net commissionsandbrokerage fees fwih iblt 86 54 44 10.8pt 54.4% 15.4 68.6 of which,liability oetc(op aa ipno)(61.9) (7.0) (22.7) Overseas (related toanon-consolidatedsubsidiary) Overseas (related toconsolidatedsubsidiaries) Domestic (SompoJapan+Nipponkoa) * ,8. 3. 7.%8.3 pt 72.9% 1,089.6 137.0 e lisicre Lossratio Net claimsincurred hneChange Change Amount * Amount * Total hneChange Change Change Change Change Change op aa Nipponkoa Sompo Japan 1 1 Total Billions ofyen FY2011 Billions ofyen Ratio * Ratio * Billions ofyen 2 2 Amount * 1 Ratio * Billions ofyen 2 Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

41 dollars Billions of yen Millions of U.S. sumed treaty reinsur- sumed treaty NKSJ Holdings, Inc. Billions of yen Billions of yen Millions of U.S. dollars Billions of yen FY2010 FY2011 FY2011 Total Sompo Japan Nipponkoa Change Change Change Change Change Change Amount Ratio* Amount Ratio* Amount Ratio* FY2007 FY2008 FY2009 FY2010 FY2011 FY2011 Securities backed by securitized assets such as the RMBS, CDOs, and CLOs. The ¥0.2 billion balance as March 31, 2012, was an as Securities backed by securitized assets such as the RMBS, CDOs, and CLOs. The ¥0.2 billion balance as March Moody's Aa3 and S&P BBB-. ance. Ratings were Total of insured amount of insured Total Outstanding loss reserves amount net of loss reservesInsured 259.4 289.4 (30.0) 78.9 218.0 (139.0) 43.5 123.1 (79.5) 15.7 25.1 (9.3) 0.2* 0.2 — 3 3 — Loss payment of loss reservesProvision/reversal Gains/losses 68.4 (45.1) 9.4 23.2 0.8 10 (8.1) 114 (98) Personnel expensesNon-personnel expenses and contributionsTax company expensesTotal 185.1 262.9 (0.6) 467.1 (2.2) 19.0 13.8% 9.7% (3.9) (1.1) (0.4) pt (0.2) pt 24.4% 1.0% (0.7) pt (0.1) pt Personnel expensesNon-personnel expenses and contributionsTax company expensesTotal 122.5 172.8 (0.1) 307.6 (4.6) 12.2 13.5% 9.6% (5.4) (0.6) pt (0.6) (0.2) pt 24.0% 1.0% 90.0 62.5 (0.9) pt (0.1) pt 159.5 (0.4) 2.3 6.8 1.4 14.3% 9.9% (0.5) 25.3% 0.2 pt (0.2) pt (0.2) pt 1.1% (0.1) pt FY2011 * ABS-CDOs* (Insured Amount) ABS-CDOs* (Insured * Above fi gures are the ratio of each amount against net premium written. the ratio of each amount against net premium are gures * Above fi Japan, Non-consolidated basis) Financial Guarantee Insurance (Sompo nancial guarantee insurance business. in the fi and exposure The following is a summary of gains & losses billion. t of ¥0.8 scal 2011 amounted to a profi nancial guarantee in fi t and loss of fi Profi scal 2011 all settled in fi which had been the main loss factor were The primary insurance ABS-CDOs* guarantees reinsurance. in the table below was for assumed treaty on the balance sheet. The ¥0.2 billion balance and none remain Overall Financial Guarantee (Gains/Losses) Company Expenses Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 42 NKSJ Holdings, Inc. Investment Profi Asaresult totalinvestmentprofi t recorded was¥61.7billion. Impairment lossesonsecuritiesamountedto¥19.9billionatSompoJapanandNipponkoa. Realizedgainsonsecurities(sale eign currencies. to decreases ininvestmentassetsandinterest incomefrom foreign bondsduetotheyen’s appreciation againstfor- Net interest anddividendincometotaled¥63.7billionatSompoJapanNipponkoa,down¥5.4billion,owingmainly Investment Xgislse 11 4 (155) 744 (44) 9 (4) 374 (28) 2 (240) 370 (5) (0) (151) (16) (23) (21) 7 (5) — (7.2) (12) (2.1) 1.9 (218) 61.7 768 (12.8) 0 (0) (3.7) Total (3.6) investmentprofi t (10) Other investmentincome 2.5 0.1 FX gains/losses 0.8 (0.0) 271 Gain onderivativeproducts 31.0 (0.3) (9.5) Impairment lossesonsecurities (2.3) (0.9) 2.0 Realized gainonsecuritiesredemption (9.7) 497 (19.9) (2.2) 0.2 2.0 Realized gainonsecuritiessales (1.9) 30.6 1.8 Gain ontradingsecurities (12.5) Gain onmoneytrusts (1.3) (2.6) 0.0 (1.7) (5.4) 0.6 Net interest anddividendincome (1.0) (11.3) 63.7 (18.1) 1.9 0.4 Total investmentprofi t Other investmentincome (0.8) FX gains/losses 22.5 Gain onderivativeproducts (5.8) Impairment lossesonsecurities Realized gainonsecuritiesredemption 41.1 Realized gainonsecuritiessales Gain ontradingsecurities Gain onmoneytrusts Net interest anddividendincome maretls ndmsi tcs(2)(8 (145) (18) 606 1,443 218 (126) (674) 497 388 (225) Impairment lossondomesticstocks (2.1) 945 Realized gainondomesticstockssales (448) (12.0) 23.0 1.9 Investment incomeondepositpremium 50.2 (9.5) Interest anddividendincome (1.5) 4.1 6.6 119.5 (4.1) (55.8) 18.0 (1.5) (10.4) 1.9 41.2 16.4 (18.6) 32.2 (8.0) Impairment lossondomesticstocks 2.2 78.3 Realized gainondomesticstocksales (37.1) Investment incomeondepositpremium Interest anddividendincome t –salelosses)totaled¥36.1billionatSompoJapanandNipponkoa. op aa ipno Total Nipponkoa Sompo Japan Y01Cag Y01Cag Y01Change FY2011 Change FY2011 Change FY2011 21.8 8.2 14.2 1.6 36.1 9.8 00 01 0.0(0.1) — — (0.1) (0.0) . . (.)(.)(.)(0.1) (0.4) (0.5) (0.4) 0.0 0.3 264 171435 op aa ipno Total Nipponkoa Sompo Japan FY2011 Millions ofU.S.dollars Billions ofyen Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

43 Millions of U.S. dollars Mark-to-market basis Nipponkoa Total NKSJ Holdings, Inc. Japan Sompo Billions of yen Mark-to-market basis Proportion Proportion Proportion Sompo Japan Nipponkoa Total 27.2 0.7% 1.7 0.1% 28.9 0.5%60.4 1.5% 328 20 349 — — 60.4 1.0% 729 — 729 715.8 18.1% 287.3 13.8% 1,003.1 16.6% 8,637 12,105 3,467 (274.0) (115.8) (389.9) (3,307) (1,398) (4,705) 1,404.8 35.6% 776.3 37.2% 36.1% 2,181.2 16,952 26,321 9,368 3,947.6 100.0% 2,086.1 100.0% 6,033.8 100.0% 47,636 25,174 72,811 BondsOthers 1,361.3 34.5%Bonds 722.1 34.6% 43.4 1.1%Others 34.5% 2,083.5 54.1 2.6% 16,427 25,142 8,714 193.8 4.9% 97.6 1.6% 521.9 13.2%11.2% 234.6 52.7 524 428.4 7.1%1,178 2.5% 653 5,170 2,830 2,339 574.6 9.5% 6,298 636 6,934 Domestic stock 983.8 24.9%Domestic Yen-denominated 541.2 25.9%securities 25.3% 1,525.0 11,871 18,402 6,530 securities Foreign currency (Foreign denominated) As of March 31, 2012 As of March Monetary receivables bought Securities: 3,104.4 78.6% 1,604.9 76.9% 4,709.4 78.1%56,828 19,366 37,462 trustsMoney LoansloansDeposits 0.2 0.0%Call Receivables under agreements resale 35.4 1.7%Land and buildings 66.3 1.7% 422.1 10.7% investment Total 35.7 0.6% 85.1 2.2%assets 181.5 196.5 10.0 0.5% 9.4% the Change from 119.6 5.7% year previous 4.6% 3 618.6 10.3% 427 76.3 1.3% 204.8 3.4% 431 117.9 5,094 2,471 1,443 2,371 1,027 7,465 800 5.7% 120 920 299.4 5.0% 2,191 1,422 3,613 Investment Asset Portfolio Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 44 Domestic LifeInsuranceBusiness NKSJ Holdings, Inc. issuance) andchangesinEVattributabletointerest ratemovements,increased ¥100.0billion. AdjustedEV, whichisequaltogrowth inEVduringthefi scal yearminuscapitalaccount transactions(suchasequity policies contributedanincrease inEV. while surrender ratesremained farbelowtheinitialforecast. Particularly, progress onshifttoprotection products innew Embedded Value (MCEVbase)increased ¥148.2billionto¥615.3onthebackofstrong growth innewpolicies Embedded Value (EV) *2 “Third sector”includesmedicalinsurance,canceretc. *1 “Change”isthecomparisonbetweenNKSJHimawariLifeinFY2011andsumofSompoJapanNipponkoa claims andotherpayments.NKSJHimawariLifepostedanetlossof¥11.1billionowingto¥11.7mergercost. Ordinary profi t amountedto¥4.2billionduemainlyincreased amountofbusinessinforce anddecrease ofinsurance product strategytofocusonprofi tability. Annualizedpremiums from businessinforce increased 3.8%to¥286.2billion. were offset bythedecrease insalesofsuchunprofi table saving-typeinsuranceaswhole-lifeinsurance.Thisrefl ects our Annualized premiums from newbusinessdecreased 3.6%to¥36.7billion.Strong salesofprofi table medicalinsurance Overview ofResults This sectiondiscussestheresults ofNKSJHimawari Lifeforthe2011fi scal year. to ¥1,735.2billion.Thecompanyconductsassetliabilitymanagement (ALM)mainlybyyen-denominatedbonds. In tandemwiththeincreased amountofbusinessinforce, thegeneralaccountinvestmentassetsrose by¥101.9billion Investment meddvle6531827,425 148.2 615.3 Embedded value As ofMarch 31,2012 36,337 443 (2.8)% (3.6)% (88.3) (1.3) 3,011.2 36.7 Annualized premiums from newbusiness Amount ofnewbusiness FY2011 e noe(os 1.)(.)— (134) 50 — 130.9% 2.3 4,346 (9.3) 2,085 4.2 (11.1) 1.4% (2.9)% 250,528 3,454 5.0 (5.1) 8.0% 3.8% 360.1 172.8 1,542.0 10.4 20,761.2 Net income(loss) 286.2 Ordinary profi t Insurance claimsandotherpayments Income from insurancepremiums Annualized premiums from businessinforce Amount ofbusinessinforce dutdntwrh1712. 1,654 5,770 29.3 118.8 137.1 478.2 Value in-force business Adjusted networth of which,third sectorinsurance* fwih hr-etrisrne rmus121 . 88%1,232 8.8% 8.3 102.1 of which,third-sector insurance*premiums fwih e uiesvl 282. 637 21.7 52.8 of which,newbusinessvale 2 peim 55 . 32%187 3.2% 0.4 15.5 premiums mutCag Amount Change Amount Amount Change iloso e MillionsofU.S.dollars Billions ofyen * 1 hneAmount % Change iloso e MillionsofU.S.dollars Billions ofyen in FY2010. Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

45 NKSJ Holdings, Inc. th Billions of yen Billions of yen Millions of U.S. dollars Change Change Proportion Net premium writtenNet premium Net income Amount Amount Companies SJ EuropeNK EuropeOtherKongChina (11.4)SJ Singapore 0.7 TenetHong 0.1 0.1 1.5 0.4 AsiaSJ (12.8) (0.0)NK China 1.3 4.4 0.8 0.0 0.0 0.1 SJ SegurosNK (2.9) (0.0) (0.0) (0.0) 0.3 2.3 1.1 0.0 0.6 0.0 0.1 (0.3)0.4 0.2 12.7 0.0 0.1 Yasuda 0.3 Maritima (2.1) 0.1 (21.2) (0.0) 0.1 (21.5) 29.7 0.6 0.5 0.2 (0.0) 0.0 Net premiums written of subsidiaries and affi liates refl ect holding shares of each company. This treatment does not coincide wi does not coincide This treatment of each company. ect holding shares liates refl written of subsidiaries and affi Net premiums nancial statements. fi FY2011 USEurope SJ America 6.4 1.2 1.0 (0.0) As of March 31, 2012 As of March bondsYen-denominated denominated bonds currency Foreign LoansDomestic stocksOthers 17.0 investment assetsTotal 1,636.8 1.0% 94.3% 1,735.2 5.0 206 19,751 34.0 2.0% 100.0% 411 42.2 2.4% 0.3% 509 20,939 60 totalEurope SigortaTurkeySingapore Sompo4.4Malaysia SJ TotalChina 7.5 1.3 1.0 10.0 4.4 0.2 0.2 Berjaya Hong Kong OtherAmerica (10.6)Asia & Middle East TotalBrazil 0.6 1.0 0.4 42.4 (12.7)South Total 29.7 (2.9) 14.5 (2.0) (0.0) 4.5 0.2 (18.9) (0.5) (19.7) 68.0 3.6 (20.4) (22.1) *2 Net income refl ects holding shares of each subsidiaries and affi liates, and fi gures are before consolidation adjustments. before are gures fi liates, and affi of each subsidiaries and ects holding shares *2 Net income refl included in “others.” liates accounted for under the equity method are *3 Affi *1 With top-line growth in emerging countries, net premiums written increased ¥14.5 billion to ¥29.7 billion in Asia and the ¥14.5 billion to ¥29.7 billion in Asia and the written increased With in emerging countries, net premiums top-line growth ¥0.6 billion to ¥42.4 billion in South America. Middle East, and rose to ¥68.0 billion. On the other ¥3.6 billion written of the overseas insurance business increased net premium Total oods. due to the Thai fl hand, net loss amounted to ¥19.7 billion mainly Written Net Premium General Account Investment Portfolio General Account Investment Overseas Insurance Business Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 46 Direct InsuranceBusiness

NKSJ Holdings, Inc. *2: *1: Lossratio=(Netlosspaid+adjustment)/Netpremiums written×100 Saison Automobile&Fire incurred anetlossof¥6.2billion,andSonpo24had¥1.3 billion. in thedirect salesbusiness.Netexpenseratioremained unchangedat30.5%Sonpo24.Asaresult oftheabove, Thenetexpenseratiowas65.3%atSaisonAutomobile&Fire, up15.8percentage pointsduetoupfront investment point increase to68.7%atSonpo24,due anincrease ofnetclaimspaid. Thelossratiorecorded a3.7percentage pointincrease to63.4%atSaisonAutomobile&Fire anda1.6percentage to ¥11. Netpremiums writtenincreased ¥0.1billionatSaisonAutomobile &Fire to¥14.4billionand¥1.1atSonpo24 also sellingviaintermediaryagents. ny thatspecializesinthedirect saleofvoluntaryautomobileinsurance,advertisingthrough generalmediaoutletsand ing to28millionSaisoncredit card holders,whichcomprisethecore ofitsbusiness.Sonpo24isaninsurancecompa- SaisonAutomobile&Fire hasgraduallyexpandedsalesofinsurancethrough direct channels,includingdirect market- This sectioncoversSaisonAutomobile&Fire andSonpo24,whichare involvedinthedirect non-lifeinsurancebusiness. e lispi . . 73079 6 (47) (45) (75) 97 2 (72) 1.6pt 0.0pt (0.9) 0.7 174 68.7% (0.9) 30.5% (1.3) 3.7pt 7.3 15.8pt 1.1 (1.3) (3.9) 63.4% 65.3% 0.5 11.9 (3.7) (6.2) Net expenseratio 8.1 0.1 Net lossratio (6.0) Net income(loss) Ordinary proﬁ t (loss) 14.4 Net claimspaid Net premiums written FY2011 /Net premiums written×100 Expense ratio=(Operatingandadministrativeexpensesonunderwriting+Netcommissionsbrokerage expenses) 9 billion. asnAtmbl ieSonpo24 Saison Automobile&Fire hneChange Change iloso e MillionsofU.S.dollars Billions ofyen Automobile Saison & Fire Sonpo 24 Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

47 NKSJ Holdings, Inc. Report of Independent Auditors Independent of Report Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights Cl on 8390.87 78,399 0.37 33,490 Receivablesunderresale agreements Call loans Cashanddeposits Assets: NKSJ Holdings,Inc. Consolidated BalanceSheets Las*,* 9,9 7.70 691,294 0.76 71.60 *4, *8 67,861 6,431,235 *3,*5,*6 0.36 32,273 0.34 30,370 Loans Securities Money trusts Monetaryreceivables bought Receivablesundersecuritiesborrowing transactions Ohra st 1,0 6.89 618,602 41,956 6,797 4,684 0.59 53,438 26,109 6,841 132,690 195,746 2,028 4.05 Other assets Otherintangiblefi xed assets 363,416 Goodwill *1,*2,*5 Software Intangiblefi xed assets: Othertangiblefi xed assets Construction in progress Leased assets Buildings Land Tangible fi xed assets: eerdtxast 5,6 2.88 258,966 Deferred taxassets utmr’laiiisfracpacsadgaate — — Customers’liabilities foracceptancesandguarantees loac o osbeivsmn oss—— (0.07) — (5,903) Allowancefor possible investmentlosses Allowancefor possible credit losses Ttla st ,8,7 100.00 8,981,974 Total assets 48 Consolidated FinancialStatements NKSJ Holdings, Inc. 538583.66% 328,528 *5 Notes No. Amount As ofMarch 31,2011 Composition ratio ,9,7 100.00 8,893,378 ,1,0 71.04 6,317,507 As ofMarch 31,2012 Amount 3,1 3.74% 332,416 5,3 7.35 654,039 1,1 8.06 716,711 127,422 4.03 194,742 358,530 3,8 2.61 232,285 0460.68 0.86 60,486 76,300 7010.42 0.33 37,091 28,952 47,740 0.62 55,311 25,034 9300.33 29,370 569 (0.06) (5,619) 1,067 6,502 4,993 6,337 —— 3 (0.00) (3) Composition ratio (Millions ofyen) (113,728) (Decrease) Increase (30,769) (30,370) (37,254) (26,681) (88,595) 26,996 98,108 29,370 (2,099) (3,320) (4,886) 3,887 1,872 283 (3) Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

49 6 — — 60 (74) 214 143 137 470 (471) 3,190 2,117 1,831 (9,726) 29,370 57,615 45,174 (14,557) (78,868) (88,595) Increase Increase 125,336 (Decrease) (168,515) (125,470) (125,935) (Millions of yen) ratio NKSJ Holdings, Inc. Composition 67 0.00 143 0.00 1,043 0.01 5,660 0.06 2,4094,624 0.03 0.05 (1,044) (0.01) 22,839 0.26 27,65827,658 0.31 29,370 0.33 (49,141) (0.55) 128,000 1.44 430,895 4.85 107,983 1.21 100,045 1.12 438,562172,868 4.93 1.94 326,591 3.67 710,431 7.99 283,111 3.18 7,144,7991,022,435 80.34% 6,122,363 7,892,801 88.75 1,000,5778,893,378 11.25 100.00 Amount As of March 31, 2012 As of March ratio Composition 268,976 2.99 As of March 31, 2011 As of March Amount No. Notes Unrealized gains and losses on securities available for sale, Unrealized net of tax reservesand claims Reserve for outstanding losses Underwriting bonds Corporate 1,009,329 6,303,985 128,000 1.43 Liabilities: funds: Underwriting 7,313,315 81.42% Consolidated Balance Sheets (Continued) Balance Consolidated Inc. NKSJ Holdings, Other liabilities Other *5 305,559 3.40 ts benefi Reserve for retirement ts to directors benefi Reserve for retirement Reserve for bonus payments to directors Reserve for bonus payments Reserves under the special laws: uctuation price fl Reserve for tax liabilities Deferred Acceptances and guaranteesliabilities Total Net assets: equity: Shareholders’ stock Common 141 104,793 0.00 1.17 — 22,624 27,520 — 0.25 0.31 27,520 — 572 — 7,902,527 0.01 87.98 100,045 1.11 Capital surplus Capital earnings Retained 438,555 298,339 4.88 3.32 Treasury stock Treasury equity shareholders’ Total income: Accumulated other comprehensive gains and losses on hedges Deferred translation adjustments currency Foreign income accumulated other comprehensive Total Stock acquisition rightsinterests Non-controlling net assets Total liabilities and net assetsTotal 836,367 9.31 237,936 (34,583) (572) 3,543 2.65 (0.39) (0.01) 0.04 2,793 2,349 8,981,974 0.03 0.03 100.00 1,079,446 12.02 Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights osso a et148 4,284 — 50 Ordinary loss Provision forallowancepossible investmentlosses Other ordinary Losses onbaddebt expenses Udrrtn noe ,8,1 94.62 2,480,715 Underwriting income: Ordinary income: NKSJ Holdings,Inc. Consolidated StatementsofIncome Consolidated StatementsofIncomeandComprehensive Income te riayicm:1,3 0.45 11,837 4.93 129,136 5,752 76,033 Otherordinary income: 238,178 1,933,283 153,723 13,655 60,088 Investment income: Reversalofunderwritingreserves Other underwriting Reversalofreserve foroutstandinglossesandclaims income Lifeinsurancepremiums written Interest anddividendincomeondepositsofpremiums, etc. Depositsofpremiums bypolicyholders Net premiums written Udrrtn xess ,4,4 81.82 2,144,942 11,325 511 238 4,134 — 698 26,359 104 1,220 156,467 Underwriting expenses: Ordinary expenses: Investmentgainsontheequitymethod Other ordinary income Investmentgainsonspecialaccount Other investment income Gainsonredemption ofsecurities Gains on Gainsonsalesofsecurities derivatives Investmentgainsontradingsecurities Investmentgainsonmoneytrusts Interest anddividendincome Ivsmn xess 154 1.97 51,524 8,930 117 350,406 1,244,450 — 58,318 129,526 353,193 *1 *1 Investment expenses: Provision forreserve Other foroutstandinglossesand claims underwriting Lifeinsuranceclaimspaidandotherpayments expenses Maturityrefunds topolicyholders Dividends to Netcommissionsandbrokerage fees policyholders Loss adjustment Net expenses claims paid te netetepne 16,581 379 3,320 9,281 20,993 16.02 419,925 — 968 *1 Operating,generalandadministrativeexpenses Investmentlossesonspecialaccount Other investment Lossesonredemption ofsecurities expenses Impairmentlossesonsecurities Lossesonsalesofsecurities Investmentlossesontradingsecurities Investmentlossesonmoneytrusts te riayepne:1,3 0.45 11,734 Otherordinary expenses: neetpi 7,301 — Provision forallowancepossiblecredit losses Interest paid NKSJ Holdings, Inc. premiums, etc. Transfer ofinterest anddividendincomeondepositsof Notes No. Amount 2,621,689 100.00% 2,628,126 100.25 to March 31,2011) Fiscal yearended March 31,2011 (60,088) (April 1,2010 647 (0.25) (6,437) % ofordinary income Amount 2,790,555 100.00% 2,628,200 94.18 1,973,777 2,842,370 101.86 2,340,706 83.88 1,472,664 to March 31,2012) Fiscal yearended March 31,2012 151,083 5.41 180,372 250,193 164,628 152,090 291,534 366,545 136,324 418,273 14.99 5,1)(1.86) (51,815) (55,932) (April 1,2011 11,271 0.40 55,932 11,160 52,522 72,525 2.60 60,357 17,040 17,980 34,813 10,864 0.39 3,253 3,294 1,011 4,754 8,473 2,289 7,566 111 196 353 508 333 364 31 52 37 — — — 3 8 % ofordinary income (Millions ofyen) (Decrease) 168,865 147,484 214,243 195,763 Increase (45,377) 21,947 21,001 (1,651) (565) (870) Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

51 178 (166) 5,603 39,557 (39,952) (79,509) (79,343) Increase Increase (Decrease) (973) 2,117 (1,200) (Millions of yen) (Millions of yen) 57,739 44,712 (92,810) (13,944) (48,098) (47,125) (April 1, 2011 March 31, 2012 March Fiscal year ended to March 31, 2012) to March income NKSJ Holdings, Inc. % of ordinary % of ordinary — 970 992 137 137 (548) (0.02) 9,144 0.33% 1,874 6,298 2,068 2,544 14,965 0.54 11,766 32,630 35,174 1.26 (April 1, 2011 (57,636) (2.07) (92,810) (3.33) (92,262) (3.31) March 31, 2012 March Fiscal year ended to March 31, 2012) to March Amount (395) (13,300) Amount Amount (143,120) (April 1, 2010 March 31, 2011 March Fiscal year ended to March 31, 2011) to March income % of ordinary % of ordinary No. Notes (382) (0.01) 3,540 0.14% 3,240 (7,623) (4,382) (0.17) (April 1, 2010 14,786 0.56 (17,683) (0.67) (13,300) (0.51) (12,918) (0.49) March 31, 2011 March Fiscal year ended to March 31, 2011) to March Amount No. Notes Share of other comprehensive income of affi liates accounted for income of affi comprehensive of other Share under the equity method Loss before non-controlling interests non-controlling Loss before Consolidated Statements of Comprehensive Income Consolidated Statements of Comprehensive NKSJ Holdings, Inc. income: Other comprehensive gains and losses on securities available for sale, net of tax Unrealized gains and losses on hedges Deferred translation adjustments currency Foreign income other comprehensive Total income Comprehensive income attributable to) (Comprehensive (120,733) of the parent income attributable to shareholders Comprehensive interests income attributable to non-controlling Comprehensive (142,660) *1 (12,233) 3,543 (459) (129,819) Extraordinary gains: Extraordinary xed assets on disposal of fi Gains on negative goodwill Gains on step acquisitions Gains gains Other extraordinary losses: Extraordinary xed assets Losses on disposal of fi losses Impairment under the special laws: for reserves Provision uctuation for price fl for reserve Provision losses Other extraordinary interests income taxes and non-controlling Loss before Income taxes income taxes Deferred income taxes Total 1,605 interests non-controlling Loss before interests Net loss attributable to non-controlling Net loss 149 9,028 *2 1,366 — 1,785 *3 9,028 1,118 3,273 Consolidated Statements of Income and Consolidated Statements of Comprehensive Income of Comprehensive Statements Consolidated of Income and Statements Consolidated of Income (Continued) Statements Consolidated Inc. NKSJ Holdings, Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights aac tteedo h eid836,367 405,344 444,248 165 228 (769) 52 Balanceatthe endoftheperiod Total changesduringtheperiod Increase duetoshare exchange Changesinthescopeof consolidation Disposal of treasury Acquisition stock of treasury stock Net loss aac tteedo h eid(572) 431,023 (572) 196 91 (769) — 298,339 (38,454) 165 Issuanceofnewstocks-exercise ofstockacquisitionrights Dividends Changesduringtheperiod: Balanceatthebeginningofperiod Total shareholders’ equity: Balanceattheendofperiod Total changesduringtheperiod Disposal of treasury Acquisition Changesduringtheperiod: stock of treasury Balanceatthebeginningofperiod stock Treasury Balanceattheendofperiod stock: Total changesduringtheperiod Changesinthescopeofconsolidation Net loss aac ttebgnigo h eid336,793 438,555 414,325 414,248 31 24,229 100,045 30,045 30,000 45 70,000 Dividends Changesduringtheperiod: Balanceatthebeginningofperiod 45 Retained Balanceattheendofperiod earnings: Total changesduringtheperiod Increase duetoshare exchange Issuanceofnewstocks-exercise ofstock acquisitionrights Disposal of treasury Changesduringtheperiod: stock Balanceatthebeginningofperiod Capital Balanceattheendofperiod surplus: Total changesduringtheperiod Increase duetoshare exchange Issuanceofnewstocks-exercise ofstockacquisitionrights Changesduringtheperiod: Balanceatthebeginningofperiod Common stock: Shareholders’ equity: NKSJ Holdings,Inc. Consolidated StatementsofChangesinNetAssets NKSJ Holdings, Inc. to March 31,2011) Fiscal yearended March 31,2011 (April 1,2010 mutAmount Amount (12,918) (25,700) (12,918) (25,700) to March 31,2012) Fiscal yearended March 31,2012 (April 1,2011 (125,935) (125,470) 710,431 836,367 172,868 298,339 438,562 438,555 100,045 100,045 (Millions ofyen) (92,262) (33,208) (92,262) (33,208) (1,044) (924) (471) (924) (572) 459 452 — — — — — — — — — 6 6 Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

53 — — — 60 60 459 (924) 3,543 2,117 2,117 5,660 2,349 2,409 2,793 1,831 1,831 4,624 57,615 57,615 45,174 45,174 47,066 (34,583) (14,557) (14,557) (49,141) (33,208) (78,868) (92,262) (Millions of yen) 268,976 326,591 237,936 283,111 1,079,446 1,000,577 (April 1, 2011 March 31, 2012 March Fiscal year ended to March 31, 2012) to March NKSJ Holdings, Inc. 228 (25,700) (12,918) Amount Amount (April 1, 2010 March 31, 2011 March Fiscal year ended to March 31, 2011) to March Consolidated Statements of Changes in Net Assets (Continued) in Net Assets of Changes Statements Consolidated Inc. NKSJ Holdings, Accumulated other comprehensive income: Accumulated other comprehensive tax: losses on securities available for sale, net of gains and Unrealized period Balance at the beginning of the 389,352 Changes during the period: equity Net changes in items other than shareholders’ (120,376) changes during the period Total end of the period Balance at the gains and losses on hedges: Deferred beginning of the period Balance at the the period: Changes during equity Net changes in items other than shareholders’ changes during the period Total end of the period Balance at the translation adjustments: currency Foreign beginning of the period Balance at the the period: Changes during equity Net changes in items other than shareholders’ changes during the period Total end of the period Balance at the income: accumulated other comprehensive Total beginning of the period Balance at the the period: Changes during equity Net changes in items other than shareholders’ changes during the period Total 3,543 Stock acquisition rights: end of the period Balance at the (120,376) the period Balance at the beginning of 268,976 Changes during the period: — equity Net changes in items other than shareholders’ period changes during the Total (12,908) Balance at the end of the period interests: Non-controlling 3,543 Balance at the beginning of the period (21,674) Changes during the period: 3,543 equity Net changes in items other than shareholders’ period changes during the (129,741) Total Balance at the end of the period net assets: Total (12,908) Balance at the beginning of the period 367,678 (34,583) Changes during the period: of stock acquisition rights Issuance of new stocks – exercise 1,046 (129,741) 237,936 1,302 (46) 1,046 2,349 2,839 91 802,843 (46) 2,793 Dividends Net loss Net stock Disposal of treasury Changes in the scope of consolidation period changes during the Total Balance at the end of the period 165 276,602 1,079,446 stock Acquisition of treasury exchange due to share Increase equity Net changes in items other than shareholders’ (128,742) (769) 444,248 Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights osbfr noetxsadnncnrligitrss(17,683) Depreciation Lossbefore incometaxesandnon-controlling interests Cash fl ucaeo euiis(858,423) 18,351 (1,874) 838,695 10,282 Collectionofloans Loans made Proceeds from salesandredemption of securities Purchase ofsecurities Decrease inmoneytrusts Increase inmoneytrusts Proceeds from salesandredemption ofmonetaryreceivables bought NKSJ Holdings,Inc. Consolidated StatementsofCashFlows neetaddvdn noe(156,467) 6,553 9,028 105 (149) 2,221 (57) 1,227 (78,908) 49 — (1,669) Interest expenses Losses(gains)oninvestmentinsecurities Interest anddividendincome (23,560) Increase (decrease) inreserve forpricefl uctuation Increase (decrease) inreserve forbonuspaymentstodirectors Increase (decrease) inreserve forbonuspayments Increase (decrease) inreserve forretirement benefi ts todirectors Increase (decrease) inreserve forretirement benefi ts Increase (decrease) inallowanceforpossibleinvestmentlosses Increase (decrease) inallowanceforpossiblecredit losses Increase (decrease) inunderwritingreserves Increase (decrease) inreserve foroutstandinglossesandclaims Gainsonnegativegoodwill Amortizationofgoodwill Impairment losses e nraei eevbe n aalsudrscrte orwn rnatos121 Others Netincrease inreceivables andpayablesundersecuritiesborrowing transactions nrae(erae nohrlaiiis(1,199) 56 44,787 6,767 (511) (238) Others Increase (decrease) inotherliabilities Decrease (increase) inotherassets Investmentlosses(gains)ontheequitymethod Losses(gains)related toloans Losses(gains)related totangiblefi xed assets Foreign exchangelosses(gains) oa fivsmn rnatos83,050 54 Total ofinvestmenttransactions e erae(nrae ndpst 25,600 (1,187) (15,750) (18,596) 165,269 Purchase ofmonetaryreceivables bought Netdecrease (increase) indeposits Cash fl Cashfl ows from operatingactivities Incometaxesrefund (paid) Interest paid Interest anddividendreceived Subtotal NKSJ Holdings, Inc. owsfrom operatingactivities: owsfrom investingactivities: Notes No. to March 31,2011) Fiscal yearended March 31,2011 (April 1,2010 (192,900) (160,941) 229,106 mutAon Amount Amount Amount 20,132 15,280 20,151 (7,173) 7,301 1,118 to March 31,2012) Fiscal yearended March 31,2012 (1,027,133) (April 1,2011 1,142,006 (183,549) (152,090) (183,286) (144,555) (299,288) 211,363 218,214 159,264 (57,636) (25,263) (11,219) 31,154 21,040 39,510 47,823 12,575 13,165 15,616 (1,002) (7,168) 3,723 1,550 1,145 8,282 3,662 7,566 2,637 (807) (142) (354) (111) 137 143 992 131 (74) — — 3 (Millions ofyen) (168,710) (104,377) (125,958) (138,347) (Decrease) 303,311 135,163 Increase (39,952) (17,743) (70,050) (36,819) 12,803 31,842 39,388 49,023 18,388 (6,559) (5,003) (8,890) (2,114) (4,535) (6,004) 1,067 9,351 1,187 1,314 4,377 1,440 5,807 (247) (124) (126) (764) 908 201 149 400 264 (82) 75 3 5 Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

55 1 (0) (7) 167 (892) (155) (448) 9,205 2,613 (7,550) (3,466) (1,035) 16,576 22,543 23,218 (11,177) Increase Increase 136,067 160,127 (Decrease) (141,141) (Millions of yen) (3) — — NKSJ Holdings, Inc. 13 (924) 2,129 2,874 (2,698) (3,033) (5,191) (2,641) 14,447 73,659 (33,246) (36,860) (14,359) 398,912 198,896 415,489 (April 1, 2011 March 31, 2012 March Fiscal year ended to March 31, 2012) to March 768 3,022 (2,584) (8,095) (5,254) (25,696) Amount Amount Amount 141,141 262,844 (April 1, 2010 March 31, 2011 March Fiscal year ended to March 31, 2011) to March No. Notes *1 398,912 *2 (28,410) nancing activities: ows from fi ows from Acquisition of stocks of subsidiaries resulting in changes subsidiaries resulting Acquisition of stocks of scope of consolidation in the Cash and cash equivalents at the end of the period Cash and cash equivalents at the end of the Net increase in cash and cash equivalents due to merger Net increase Net increase in cash and cash equivalents due to share exchange in cash and cash equivalents due to share Net increase Consolidated Statements of Cash Flows (Continued) of Cash Flows Statements Consolidated Inc. NKSJ Holdings, stock sales of treasury from Proceeds stock Acquisition of treasury paid Dividends shareholders Dividends paid to non-controlling Others nancing activities fi from ows Cash fl of exchange rate changes on cash and cash equivalents Effect in cash and cash equivalents (decrease) Net increase of the period Cash and cash equivalents at the beginning 20 (5) (769) (25,683) Cash fl issuance of stocks from Proceeds 0 and investment transactions as above of operating activities Total 64,453 xed assets of tangible fi Acquisition xed assets sales of tangible fi from Proceeds Others activities investing from ows Cash fl 2,707 (13,324) 38,768 Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 56 1. NKSJ Holdings,Inc. Notes totheConsolidatedFinancialStatements Signifi cant AccountingPoliciesforthePreparation oftheConsolidatedFinancialStatements NKSJ Holdings, Inc. (2) MaritimaSaudeSeguros S.A. MaritimaSeguros S.A. UniversalSompoGeneralInsuranceCompanyLimited Yasuda EnterpriseDevelopmentCo., Ltd. HitachiCapitalInsuranceCorporation (1) Numberofaffi 2. Applicationoftheequitymethod ArkReLimited SompoJapanInsurance(Thailand)Co.,Ltd. Namesofprincipalnon-consolidated subsidiaries (2) Namesofprincipalnon-consolidatedsubsidiaries Yasuda Seguros S.A. NIPPONKOAInsuranceCompany (Asia)Limited SompoJapanInsurance(Hong Kong)CompanyLimited NIPPONKOAInsuranceCompany (China)Limited SompoJapanInsurance(China) Co.,Ltd. BerjayaSompoInsuranceBerhad Tenet InsuranceCompanyLimited SompoJapanInsurance(Singapore) Pte.Ltd. SompoJapanAsiaHoldings Pte.Ltd. SompoJapanSigortaAnonim Sirketi NipponInsuranceCompany ofEurope Limited NIPPONKOAManagement Services(Europe) Limited NIPPONKOAInsuranceCompany (Europe) Limited SompoJapanInsuranceCompany ofEurope Limited SompoJapanInsuranceCompany ofAmerica SOMPOJAPAN NIPPONKOAASSETMANAGEMENTCO.,LTD. Healthcare Frontier JapanInc. SompoJapanDCSecuritiesCo.,Ltd. SompoJapanDIYLifeInsuranceCo.,Ltd. NKSJHimawariLifeInsurance,Inc. SaisonAutomobileandFire InsuranceCompany, Limited Sonpo24InsuranceCompanyLimited NIPPONKOAInsuranceCo.,Ltd. SompoJapanInsuranceInc. (1) Numberofconsolidatedsubsidiaries:24companies 1. Scopeofconsolidation excluded from thescopeofconsolidation. income orlossandretainedtotheextentofequityposition oftheNKSJHoldings,Inc.(“NKSJ”),theyare earnings ditions andresults ofoperationstheNKSJGroup (the“Group”) intermsoftotalassets,ordinary income, net As thenon-consolidatedsubsidiariesdonothaveamaterialimpact on reasonable judgmentaboutthefi nancial con- consolidated subsidiaryduringthefi scal yearendedMarch 31,2012through additionalacquisitionofshares. Berjaya SompoInsuranceBerhad,whichhadbeenanaffi liate accountedforunderthe equity methodbecamea impact as awhole. the consolidated netincomeorlossandretained etc.andthey also donothaveamaterial earnings, Limited, etc.)are notaccounted forundertheequity method aseachcompanyhas aminorimpacton The non-consolidatedsubsidiaries andaffi liates accountedforundertheequitymethod:5companies liates (SompoJapanInsurance(Thailand)Co.,Ltd.andArk Re Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

57 nance, promotion NKSJ Holdings, Inc. liates. assets cant depreciable subsidiaries scal year of consolidated Trading securities are carried at fair value. securities are Trading on the moving-average method. carried at amortized cost based Bonds held to maturity are car- equity method are not accounted for under the liates that are affi Stocks of non-consolidated subsidiaries and ried at cost based on the moving-average method. gure cult to fi diffi extremely considered available for sale which are Securities available for sale (excluding securities scal year. price and other factors at the end of the fi carried at fair value based on the market out their fair value) are and cost of sale is included in net assets directly are gains and losses, net of applicable income taxes, Unrealized calculated based on the moving-average method. carried at cost fair value are out their gure cult to fi diffi extremely considered Securities available for sale which are based on the moving-average method. carried operated money trusts for primarily trading purposes are Securities managed as trust assets in individually at fair value. ed as other than trading purposes Securities managed as trust assets in individually operated money trusts classifi carried on the same basis as that of securities available for sale. or held to maturity are xed assets (excluding leased assets) held by NKSJ and its domestic consolidated sub- tangible fi of Depreciation attached to xtures fi sidiaries is calculated using the declining-balance method, except for buildings (excluding using the straight-line method. is calculated on or after April 1, 1998 whose depreciation buildings) acquired consolidated subsidiaries is xed assets (excluding leased assets) held by the foreign tangible fi of Depreciation mainly calculated using the straight-line method. for internal using the straight-line Amortization of software use held by the consolidated subsidiaries is calculated method based on the estimated useful life. NKSJ holds 26.6% of voting rights of Japan Earthquake Reinsurance Co., Ltd. (“J.E.R.”) through its its Co., Ltd. (“J.E.R.”) through voting rights of Japan Earthquake Reinsurance NKSJ holds 26.6% of is engaged in public busi- casualty insurance subsidiaries. As J.E.R. and property domestic consolidated of fi to have a material impact on J.E.R.'s decisions considered ness and NKSJ is not and business strategy, J.E.R. is excluded from affi J.E.R. is excluded from and business strategy, The balance sheet dates of the foreign consolidated subsidiaries are December 31. As the difference between the December 31. As the difference consolidated subsidiaries are of the foreign The balance sheet dates nancial state- months, the fi not exceed three the consolidated balance sheet date does balance sheet dates and statements. nancial of the consolidated fi the preparation used for 31 are ments as of December Necessary adjustments are made for signifi cant transactions during the periods from the balance sheet dates of the the balance sheet dates of during the periods from cant transactions signifi made for are Necessary adjustments date. subsidiaries to the consolidated balance sheet (3) 3. The fi

4. Accounting policies policies and methods for securities (1) Valuation (a) on the moving-average method. Cost of sale is calculated based (b) (c) (d) (e) (f) (g) policies and methods for derivative transactions (2) Valuation carried at fair value. Derivative transactions are methods of signifi (3) Depreciation xed assets (excluding leased assets) (a) fi Tangible xed assets (b) Intangible fi Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 58 NKSJ Holdings, Inc. (5) Signifi Reserve forpricefl (g) uctuation Reserve forbonuspaymentstodirectors (f) Reserveforbonuspayments (e) Reserve forretirement benefi (d) ts todirectors Reserveforretirement benefi (c) ts (b) Allowanceforpossiblecredit losses (a) (4) Accountingpoliciesforsignifi Accounting Standard tothe InsuranceIndustry”(Japanese Institute ofCertifi ed Public AccountantsIndustryAudit ance contractsbased on“TheAccountingandAuditing Treatment ontheApplicationofFinancial Products cash fl ow fl uctuation riskof fl oating-rate loansandbondsinterest ratefl uctuation riskrelated tolong-term insur- Generally theconsolidatedsubsidiaries applythedeferred hedgeaccountingmethod tointerest rateswapstohedge insurance subsidiariessetasidereserves underArticle115oftheInsuranceBusiness Act. In order to provide forpossiblelossesarisingfrom pricefl uctuation ofstock,etc.,thedomesticconsolidated the estimatedamountstobepaidatendoffi scal year. In order toprovide for directors’ bonuspayments,reserve forbonuspaymentstodirectors isrecorded, based on mated amountstobepaidattheendoffi scal year. In order toprovide for employees’bonuspayments,reserve for bonus paymentsisrecorded, basedontheesti- deemed accruedattheendoffi regulations.scal yearbasedoninternal In order toprovide forretirement benefi ts todirectors, thedomesticconsolidatedsubsidiariesrecord theamount within theaverageremaining serviceyearsofemployeesaseachfi scal yearwhendifference occurs. Actuarial difference isamortizedfrom thefollowingfi scal yearbyusingthestraight-linemethodovercertainyears service yearsofemployeesatthetimeoccurrence. Prior servicecostsare amortizedusingthestraight-linemethodovercertainyearswithinaverageremaining based ontheprojected retirement benefi t obligationandtheestimated planassetsattheendoffi scal year. In order toprovide foremployees’retirement benefi ts, thedomesticconsolidated subsidiariesrecord theamount for self-assessmentofassetsandthepolicywrite-off andprovision. idated subsidiaryestablishesallowanceforpossibleinvestmentlossesinaccordancestandards withtheinternal In order toprovidesecuritiestransactions,thedomesticconsol- forpossibleinvestmentlossesmainlyconcerning Allowance forpossibleinvestmentlosses allowances tocovertheestimatedfuture losses. The otherconsolidatedsubsidiariesdeterminemainlythecollectabilityofreceivables respectively toprovide ances are provided basedonthereviewed results. dards forself-assessmentofassets. Theassetauditingdepartmentindependentlyreviews theresults andallow- The departmentsresponsible forrespective assetsassessrelevant claiminaccordancestan- withtheinternal by thedefaultrate,whichiscalculatedbasedonhistoricalcredit lossexperienceforacertainperiodinthepast. For claimsotherthanthosedescribedabove,allowancesare provided basedontheamountofclaimsmultiplied mated collectableamountsfrom disposalof collateralandfrom guarantees. the amountconsidered necessaryaccording tooverallsolvencyassessmentofthedebtor, afterdeductionofesti- For claimsagainstdebtorsthatare highlylikely togobankruptinthefuture, allowancesare provided basedon remaining afterdeductionoftheestimatedcollectable amountsbythedisposalofcollateralandguarantees. whose noteshavebeenundersuspensionatclearinghouses,allowancesare provided basedontheamount For claimsagainstdebtorsthathavelegally, formallyorsubstantiallyentered intobankruptcy, specialliquidationor of write-off andprovision. for possiblecredit lossesinaccordance standards withtheinternal forself-assessmentofassetsandpolicy In order toprovide forlossesfrom defaults,thedomesticconsolidatedinsurancesubsidiariesestablishallowance cant hedgeaccounting cant reserves Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

59 NKSJ Holdings, Inc. ows has applied Accounting Standards Board of Japan Statement Board has applied Accounting Standards NKSJ Practice Committee Report No.26, hereafter “Industry Audit Practice Committee Report No.26”). The exceptional “Industry Audit Practice Committee No.26, hereafter Practice Committee Report certain conditions to the extent that such transactions meet rate swaps is applied to certain interest treatment for the application of the exceptional treatment. required The domestic consolidated subsidiaries apply the fair value hedge accounting method to equity swaps for hedging accounting method to equity swaps for hedging subsidiaries apply the fair value hedge The domestic consolidated uctuation risks. stock price fl the future The fair value hedge accounting method is applied to forward foreign exchanges, currency options and currency options and currency exchanges, currency foreign method is applied to forward The fair value hedge accounting denominated assets, etc. The currency uctuation risk on foreign exchange rate fl foreign to reduce swaps in order to the extent that such transac- is applied to certain transactions as an exceptional treatment assignment accounting of the assignment accounting. for application required tions meet certain conditions Hedge effectiveness is assessed by periodically comparing the accumulated fl uctuations of the market value or cash uctuations comparing the accumulated fl is assessed by periodically Hedge effectiveness of the the commencement hedging instrument for the period from to those of the related ows of the hedged item fl among the hedged item and shared when the material conditions are hedge to the date of assessment. However, for meet requirements rate swaps high, when interest is considered the hedging instrument and its effectiveness conditions to apply the assignment ll the required fulfi or when certain transactions applying the exceptional treatment is omitted. accounting, the assessment of the hedge effectiveness The hedge effectiveness based on Industry Audit Practice Committee Report No.26 is assessed by monitoring the based on Industry Audit Practice The hedge effectiveness liabilities as hedged item and inter- prices of both insurance which impact the calculation of theoretical rates interest periods. remaining by different grouped est rate swaps as hedging instrument which are Goodwill is amortized over 20 years using the straight-line method. Insignifi cant amounts of goodwill are amortized at cant amounts of goodwill are straight-line method. Insignifi Goodwill is amortized over 20 years using the one time. Cash and cash equivalents in the consolidated statements of cash fl ows consist of cash on hand, demand deposits statements of cash fl Cash and cash equivalents in the consolidated or less, which can be cashed eas- months of three or redemption and short-term investments with original maturities uctuation in value. ily and have little risk of fl NKSJ and its domestic consolidated subsidiaries account for national and local consumption taxes using the tax- NKSJ and its domestic consolidated subsidiaries insurance subsidiaries’ expenses such as loss adjustment excluded method, except for the domestic consolidated expenses under the tax-included method. Non-deductible con- expenses and operating, general and administrative included in other assets and amortized in equal installments over 5 years. to assets are sumption taxes relating

(6) Method and period of amortization of goodwill (6) Method and period of amortization of (7) Cash and cash equivalents in the consolidated statements of cash fl (7) Cash and cash equivalents in the consolidated No.2 “Accounting Standard for Earnings Per Share” (June 30, 2010), Accounting Standards Board of Japan Guidance No.4 Board for Earnings (June 30, 2010), Accounting Standards No.2 “Accounting Standard Per Share” of Japan Board for Earnings (June 30, 2010) and Accounting Standards “Guidance on Accounting Standard Per Share” No.9 “Practical Solution on Accounting for Earnings (June 30, 2010). Per Share” Force Practical Issues Task are and net loss per share net assets per share split of stocks on October 1, 2011. Total NKSJ carried out a reverse scal year split of stocks was executed at the beginning of the fi calculated based on the assumption that the reverse 2011. 31, ended March information.” The impact of changes in accounting policies is shown in “Per share Additional information etc.) Corrections”, for Accounting Changes and Error (Application of “Accounting Standard Board 31, 2012, NKSJ has applied Accounting Standards scal year ended March the beginning of the fi from Effective (December 4, 2009) Corrections” for Accounting Changes and Error of Japan Statement No.24 “Accounting Standard for Accounting of Japan Guidance No.24 “Guidance on Accounting Standard Board and Accounting Standards (December 4, 2009). Corrections” Changes and Error (8) Accounting methods for consumption taxes (8) Accounting methods for consumption Changes in accounting policies, etc. (Changes in accounting policies) 31, 2012, scal year ended March the fi from Effective Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 60 2. NotestotheConsolidatedBalanceSheets NKSJ Holdings, Inc. *5. *4. *3. *2. *1.

Note) Secured debts Note) Pledged assets oa ,6 2,937 538 2,076 — 3,767 323 963 36,459 2,210 5,721 1 591 37,122 6,003 Total Restructured loans Loans overdue forthree monthsormore Overdue loans Loans toborrowers inbankruptcy Securities (equityinterests) Securities (stocks) te iblte broig)1841,546 82,752 75,360 2,323 5,068 1,834 72,306 64,798 2,330 5,177 Other liabilities(borrowings) Total Tangible fi xed assets Securities Deposits Pledged assetsandsecured debtsare asfollows. The amountsofloanstoborrowers inbankruptcy, etc.are asfollows. Investments innon-consolidatedsubsidiariesandaffi The amountsofadvanceddepreciation oftangiblefi The amountsofaccumulateddepreciation oftangiblefi because paymentsofprincipalorinterest are overdue forconsiderableperiodsandtherefore are regarded asimprobable. accrual loansare defi ned asloans(excludingtheportionofthatwere writtenoff), onwhichaccruedinterest receiv allowance forpossiblecredit losses)orArticle96-1-4ofthe“Order forEnforcement oftheCorporationTax Act”(CabinetOrde Loans toborrowers inbankruptcyrepresent non-accrualloanswhichmeettheeventsdefi ned inArticle96-1-3(themaximumamoun the entire amountiseliminatedforthepreparation oftheconsolidatedfi nancial statements. Other thanthosementionedabove,stocksofsubsidiariesandaffi liates of2,794millionyenare pledgedascollateralofMa Restructured loansrepresent, amongloanswhichare notincludedinanyoftheabovecategories,loansonwhichfavorableterms order toassistorfacilitatetherestructuring ofborrowers infi nancial diffi culties. rowers suchasinterest exemptionorreduction, graceoninterest payments,graceonprincipalrepayments orforgivenessofdeb which thepaymentofprincipalorinterest hasbeendelayedforthree monthsormore from thedatefollowingduedate. Loans overdue forthree monthsormore represent, amongloanswhichare notincludedinloanstoborrowers inbankruptcyorove Overdue loansrepresent non-accrualloansotherthan(a)toborrowers inbankruptcyor(b)loansonwhichgraceintere granted inorder toassistorfacilitatetherestructuring ofborrowers infi nancial diffi culties. so ac 1 01AsofMarch 31,2012 As ofMarch 31,2011 AsofMarch 31,2012 As ofMarch 31,2011 9,3 406,764 396,437 89728,681 28,987 so ac 1 01AsofMarch 31,2012 As ofMarch 31,2011 so ac 1 01AsofMarch 31,2012 As ofMarch 31,2011 AsofMarch 31,2012 As ofMarch 31,2011 AsofMarch 31,2012 As ofMarch 31,2011 (Millions ofyen) (Millions ofyen) xed assetsare asfollows. liates are asfollows. xed assetsare asfollows. rch 31,2011and2012,but r No.97of1965).Non- ts havebeengrantedin st payments have been st paymentshavebeen able isnotrecognized forthebenefi t ofbor- rdue loans,loanson (Millions ofyen) (Millions ofyen) (Millions ofyen) (Millions ofyen) t transferableto Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

61 (Millions of yen) sions and broker- (Millions of yen) NKSJ Holdings, Inc. (April 1, 2011 to March 31, 2012) (April 1, 2011 to March Fiscal year ended March 31, 2012 Fiscal year ended March Impairment losses (millions of yen) 596 354 — 951 145742 19 374 1 1 166 1,118 Land Buildings Others Total (Millions of yen) (Millions of yen) (April 1, 2010 to March 31, 2011) (April 1, 2010 to March 34,071 5,307 Fiscal year ended March 31, 2011 Fiscal year ended March 9 properties, including 9 properties, in Tokyo building for rent 11 properties, including 11 properties, parking lot in Ehime As of March 31, 2011As of March 31, 2012 As of March 10,940 9,386 74,592 43,523 As of March 31, 2011As of March 31, 2012 As of March As of March 31, 2011As of March 31, 2012 As of March age fees included in the consolidated statements of income. Operating expenses represent the sum of loss adjustment expenses, operating, general and administrative expenses and net commis Operating expenses represent Purpose of use Category Location the consolidated subsidiaries devalue the book value of those properties to the realizable value. to the realizable the consolidated subsidiaries devalue the book value of those properties losses. losses in extraordinary as impairment recorded These devaluations are and the net sell- for rent is calculated using the value in use or the net selling price for properties value The realizable ows at the rate of 5.2%. cash fl The value in use is calculated by discounting the future ing price for idle properties. estate appraisal standard. The net selling price is the appraisal value based on the real The domestic consolidated insurance subsidiaries categorize properties used for the insurance business as a single The domestic consolidated insurance subsidiaries categorize properties is and expected disposal property idle property for rent, insurance business. Each property the entire for asset group used for the subsidiaries categorize properties The other consolidated categorized as an individual asset group. for each subsidiary. business as a single asset group mainly due to a decline in the prices of land, cantly, tability signifi their profi Concerning which have reduced properties Of the securities received under borrowing transactions of bonds with cash collateral and the and the transactions of bonds with cash collateral borrowing under Of the securities received holds rights which the Group under derivative transactions, those as collateral securities received as follows. are or use as collateral at its discretion to dispose of by sale Components of impairment losses are as follows. Components of impairment losses are The amounts of lending securities under loan agreements included in securities are as follows. in securities are included securities under loan agreements The amounts of lending as follows. are The amounts of loan commitments outstanding Agency commissions, etc.Salaries for rentProperties Land and buildings 353,682 221,632 367,784 218,893 Securities which the Group does not Securities which the Group dispose of but retains Idle properties Land, buildings and others Total

31, 2011) 31, 2011 (April 1, 2010 to March ended March Fiscal year Note) 7. *2. *8. follows. as are *1. Major components of operating expenses *6. Notes to the Consolidated Statements of Income Notes to the Consolidated Statements 3. Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 62 4. NotetotheConsolidatedStatementsofComprehensive Income NKSJ Holdings, Inc. *3. Principalitemsinotherextraordinary lossesare asfollows.

*1. Reclassiﬁ Fiscal yearendedMarch 31,2012(April1,2011toMarch 31,2012) FiscalyearendedMarch 31,2012(April1,2011toMarch 31,2012)

Total depoete Land,buildingsandothers Idle properties Ttlohrc mrhnieicm 44,712 Total other comprehensive income h mutocre uigtepro (1,133) (13,944) 2,117 4,158 49,917 Share ofothercomprehensive incomeof Reclassifi 57,739 Theamountoccurred duringthe period cation adjustments Share ofothercomprehensive incomeofaffi liates accountedforundertheequitymethod Theamountoccurred duringtheperiod Foreign currency translationadjustments Deferred gainsandlossesonhedges Tax Before taxeffects adjustments effects Reclassifi Theamountoccurred duringtheperiod cation adjustments Deferred gainsandlossesonhedges Unrealized gainsandlossesonsecuritiesavailableforsale,netoftax Tax Before taxeffects adjustments effects Reclassifi Theamountoccurred duringtheperiod cation adjustments Unrealized gainsandlossesonsecuritiesavailablefor sale, netoftax subsidiaries Merger costofdomesticconsolidatedlifeinsurance Landandbuildings Properties forrent the real estateappraisers. The realizable valueiscalculatedusingthenetsellingprice.Thepriceappraisalmeasured by These devaluationsare recorded asimpairmentlossesinextraordinary losses. the consolidatedsubsidiariesdevaluebookvalueofthoseproperties totherealizable value. propertiesConcerning whichhavereduced their profi tability signifi cantly, mainlyduetoadeclineinthepricesofland, business asasingleassetgroup foreachsubsidiary. categorized asanindividualassetgroup. The otherconsolidatedsubsidiariescategorizeproperties usedforthe asset group fortheentire insurancebusiness.Eachproperty forrent, idleproperty andexpecteddisposalproperty is The domesticconsolidatedinsurancesubsidiariescategorizeproperties usedfortheinsurancebusinessasasingle ups fueCtgr Location Category Purpose ofuse cation adjustmentsandtherelated taxeffects concerningothercomprehensive income affi liates accountedfor company houseinIbaraki 11 properties, including building forrent inMiyazaki 5 properties, including Fiscal yearendedMarch 31,2011 (April 1,2010toMarch 31,2011) under theequity 0 11,766 903 adBidnsOhr Total Others Buildings Land 5 3 992 0 238 753 4 3 978 0 234 744 ehd(1,200) method 93— 13 Impairment losses(millionsofyen) Fiscal yearendedMarch 31,2012 (April 1,2011toMarch 31,2012) 52,254 (1,385) 2,773 5,485 2,337 (655) (66) (Millions ofyen) (Millions ofyen) Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

63 2,349 June 28, 2011 OA Insurance Co., end of the period (thousand shares) Number of shares at the at Number of shares NKSJ Holdings, Inc. 2011 March 31, March Record date Record date Effective Record date Record date Effective date Record date Effective Balance at the end of the period (millions of yen) share the period 20 yen Decrease during Decrease Dividend per (thousand shares) share share Dividend per Dividend per dividend earnings Retained Source of Source the period Increase during Increase dividends dividends (thousand shares) Total amount of Total amount of Total 33,208 dividends million yen Total amount of Total shares shares Type of Type of Type stock shares Type of Type Common Common stock 19,681 million yen 20 yen 31, 2010 March Common stock June 29, 2010 6,019 million yen 8 yen 31, 2010 March June 29, 2010 (thousand shares) beginning of the period Number of shares at the at Number of shares Category of stock acquisition rights Breakdown Resolution Resolution Resolution As NKSJ is a joint holding company established through share exchange on April 1, 2010, the amounts of dividends exchange on share through As NKSJ is a joint holding company established of wholly-owned subsidiaries mentioned at each general meeting of stockholders the amounts approved paid are below. Ltd. (“NIPPONKOA”): 1,661,263 thousand shares Increase due to exercise of stock acquisition rights: 145 thousand shares of stock due to exercise Increase shares less than a full trading unit: 317 thousand of shares due to purchase Increase of stock acquisition rights: 299 thousand shares to exercise stock related due to disposal of treasury Decrease less than a full trading unit: 34 thousand shares due to sales of shares Decrease New stocks issued in the establishment of NKSJ through share exchange of Sompo Japan Insurance Inc. (“Sompo Japan”) and NIPPONK share New stocks issued in the establishment of NKSJ through Breakdown of increase in treasury stock of common stock of 1,317 thousand shares is as follows. shares stock of common stock of 1,317 thousand in treasury of increase Breakdown is as follows. shares stock of common stock of 334 thousand in treasury of decrease Breakdown Breakdown of increase in shares outstanding of common stock of 1,661,409 thousand shares is as follows. thousand shares outstanding of common stock of 1,661,409 in shares of increase Breakdown General meeting of stockholders held on June 28, 2010 General meeting of stockholders held on June 27, 2011 NKSJ Holdings, Inc. Total Stock acquisition rights for stock optionsGeneral meeting of stockholders held on June 28, 2010 2,349 Shares outstanding Shares stock Common Total stock Treasury stock Common Total — — — 1,661,409 — 1,317 1,661,409 — 1,317 334 — 1,661,409 334 1,661,409 983 983

NIPPONKOA in the following period in this period, dividends effective (2) Of dividends recorded 2. 1,000 thousand shares of directors: by board with approval stock in accordance due to acquisition of treasury Increase 3. 3. Dividends (1) Dividends paid Notes) 1. 2. Stock acquisition rights Fiscal year ended March 31, 2011 (April 1, 2010 to March 31, 2011) 1, 2010 to March 31, 2011 (April Fiscal year ended March stock and of treasury outstanding and number of shares 1. Type Sompo Japan Notes to the Consolidated Statements of Changes in Net Assets Statements of Changes Notes to the Consolidated 5. Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 64 6. NotestotheConsolidatedStatementsofCash Flows NKSJ Holdings, Inc. *1. 3. Breakdown ofdecrease intreasury stockofcommon1,716thousandshares isasfollows. (2) (1) Dividendspaid 3. Dividends 2. Stockacquisitionrights 2. Breakdown ofincrease intreasury stockofcommon1,260thousandshares isasfollows. 1. Decrease inshares outstandingofcommonstock1,246,056thousandshares isduetothereverse splitofstocks. Notes) 1. Type andnumberofshares outstandingandoftreasury stock Fiscal yearendedMarch 31,2012(April1,2011toMarch 31,2012)

KJHlig,Ic tc custo ihsfrsokotos2,409 527 held onJune27,2011 527 General meetingofstockholders Stockacquisitionrightsforstockoptions 1,716 415,352 1,716 415,352 1,246,056 Total NKSJHoldings,Inc. 1,260 1,246,056 — 1,260 983 — 983 1,661,409 1,661,409 Total Common stock Treasury stock Total Common stock Shares outstanding ahadcs qiaet 9,1 415,489 6,317,507 76,300 332,416 (6,312,437) 60,486 6,431,235 398,912 78,399 (6,426,338) 328,528 33,490 Cash and cashequivalents Securities otherthan cashequivalents 3 months depositswithoriginalmaturities ofmore than Time Securities Receivables underresale agreements Call loans Cash anddeposits held onJune27,2012 General meetingofstockholders Decrease duetosalesofshares lessthanafulltradingunit:21thousandshares (before thereverse splitofstocks:19thous Decrease duetodisposaloftreasury stockrelated toexercise ofstockacquisitionrights:771thousandshares (before therev Decrease duetothereverse splitofstocks:924thousandshares Increase duetopurchase ofshares lessthanafulltradingunit:53thousandshares (before thereverse splitofstocks:36th Increase duetopurchase offractionalshares astheresult ofareverse splitofstocks:7thousandshares sand shares, afterthereverse splitofstocks:3thousandshares) split ofstocks:16thousandshares) 1,000 thousandshares, afterthereverse splitofstocks:200thousandshares) Increase duetoacquisitionoftreasury stockinaccordance withapproval byboard ofdirectors: 1,200thousandshares (before split ofstocks:2thousandshares) in theconsolidatedbalancesheets Reconciliation ofcashandequivalentsattheend theperiodtolineitemsrepresented Of dividendsrecorded inthisperiod,dividendseffective inthefollowingﬁ Resolution Resolution aeoyBreakdown ofstockacquisitionrights Category at thebeginningof Number ofshares (thousand shares) omnsok3,0 ilo e 0ynMrh3,21 June28,2011 March 31,2011 20yen 33,208millionyen Common stock the period Common Type of shares stock Type of shares Total amountof million yen dividends 33,186 Total amountof (thousand shares) dividends Increase during so ac 1 01AsofMarch 31,2012 As ofMarch 31,2011 the period 4,0)(58,782) (46,402) Source of Retained earnings dividend Dividend per share (thousand shares) Dividend per Decrease during 80 yen the period share Balance attheendofperiod(millionsyen) scal period eoddt Effective date Record date eoddt Effective date Record date March 31, ousand shares, afterthereverse 2012 erse splitofstocks:768thou- 2,409 and shares, afterthereverse at theendofperiod the reverse splitofstocks: Number ofshares (thousand shares) June 28,2012 (Millions ofyen) Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

65 (Millions of yen) (Millions of yen) NKSJ Holdings, Inc. 26,397 (38) (Millions of yen) ows from investment activities conducted as a investment activities ows from Acquisition cost Accumulated depreciation Accumulated impairment losses Balance Acquisition cost Accumulated depreciation Accumulated impairment losses Balance ows from investing activities include cash fl investing activities ows from cant non-cash transactions Acquisition cost, accumulated depreciation, accumulated impairment losses and balance of leased assets Acquisition cost, accumulated depreciation, Acquisition cost includes interest payable thereon because the balance of future lease payments account for a small because the balance of future payable thereon Acquisition cost includes interest xed assets. portion of the balance of tangible fi Cash fl part of insurance business. Acquisition cost includes interest payable thereon because the balance of future lease payments account for a small because the balance of future payable thereon Acquisition cost includes interest xed assets. portion of the balance of tangible fi Finance lease transactions that do not transfer ownership accounted for in a manner similar to accounting treatment ownership accounted for in a manner similar to accounting treatment Finance lease transactions that do not transfer transactions. rental for ordinary The major components of assets and liabilities of the newly consolidated subsidiary during the fi scal year ended subsidiary during the fi of assets and liabilities of the newly consolidated The major components as follows. The the consolidation are Berhad, at the commencement of 31, 2012, Berjaya Sompo Insurance March of those shares. for acquisition and net expenditure for additional acquisition of the shares following also shows cost Major components of assets and liabilities of newly consolidated subsidiaries through the acquisi- subsidiaries through of assets and liabilities of newly consolidated Major components tion of shares Tangible fi xed assets fi Tangible 2,665xed assets fi Tangible 2,166 790 — 707 499 — 82 31, 2012 As of March 1. Finance lease transactions

(Lessee) (1) 31, 2011 As of March Assets: Goodwill funds Liabilities: Cash and deposits Underwriting interests Non-controlling method stocks based on the equity Appraised value of already-acquired Others Gains on step acquisitions of the shares Cost for additional acquisition (3,527) the subsidiary mentioned above Cash and cash equivalents of above mentioned of the shares for additional acquisition Net: Expenditure 3. Signiﬁ None. 5,191 4. (7,961) (13,735) (3,334) 12,264 15,238 13,153 (15,284) (6,298)

*2. Lease Transactions 7. Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 66 8. FinancialInstruments NKSJ Holdings, Inc. (3)

(Lessor) (Lessee) Future leasepaymentsrelated tonon-cancelableoperatingleases 2. Operatingleasetransactions (4) Calculationofdepreciation equivalent (2) Balanceoffuture leasepayments (1) Ourpolicytomanagefi 1. Overviewoffi oa ,6 3,702 1,931 1,771 4,763 2,702 2,061 — 435 435 — Total Due afteroneyear 706 Due withinoneyear 82 706 14 67 499 Impairment losses Depreciation equivalent 77 on leasedassets Reversal ofreserve forimpairmentlosses 421 Lease payments leased assets Balance ofreserve forimpairmentlosseson Total Due afteroneyear Due withinoneyear oa ,8 6,590 5,170 1,419 8,180 6,683 1,496 Total Due afteroneyear Due withinoneyear certain extent inthecalculation ofcapital. by issuingsubordinated bonds (hybridfi nance) thatmajorcredit ratingagenciesevaluateto beeligibleforinclusionto The consolidated subsidiaryaimstoenhanceitsequity capitaleffectively, inorder tostrengthen itsfi nancial position, Depreciation equivalentiscalculatedusingthestraight-linemethodoverleaseperiod,withnoresidual value. balance oftangiblefi xed assets. Balance offuture leasepaymentsincludes interest payablethereon becauseitaccountsforasmallportionofthe refunds topolicyholdersby themethodologybasedonALM(integrated managementofassets andliabilities). bilities suchaslifeinsuranceandsavings-type insurance,theGroup intendsto stabilizereturnsforthefuture maturity liquidity andprofi tability. Further, inorder toappropriately manageinvestmentassetsrelated tolong-terminsurancelia- the insurancecompany, theGroup managestheinvestmentassettakingintoconsiderationoptimal mixofsafety, As theGroup ismainlyengagedininsurancebusinessesandfullyrecognizes thecharacteristicofinvestmentfundfor impairment losses Lease payments,reversal ofreserve forimpairmentlossesonleasedassets,depreciation equivalentand nancial instruments nancial instruments Fiscal yearendedMarch 31,2011 (April 1,2010toMarch 31,2011) so ac 1 01AsofMarch 31,2012 As ofMarch 31,2011 so ac 1 01AsofMarch 31,2012 As ofMarch 31,2011 AsofMarch 31,2012 As ofMarch 31,2011 —— —— Fiscal yearendedMarch 31,2012 (April 1,2011toMarch 31,2012) (Millions ofyen) (Millions ofyen) (Millions ofyen) (Millions ofyen) Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

67 NKSJ Holdings, Inc. nancial instruments nancial nancial instruments nancial nancial instruments nancial nancial investments nancial As fi nancial instruments which the Group holds are mainly securities such as bonds and stocks, the Group is exposed securities such as bonds and stocks, the Group mainly are holds the Group nancial instruments which As fi uenced by stock prices, interest infl investments, which are uctuations of with price fl to risks (market risks) associated to not be traded or may be forced as risks (liquidity risks) that securities may exchange rates, as well rates and foreign crisis and the like. than under normal conditions due to a market unfavorable prices be traded at far more And the securities and the loans which the Group holds are exposed to credit risk which would cause a signifi cant risk which would cause a signifi exposed to credit holds are the loans which the Group And the securities and such as deterioration of creditworthi- principal due to the reasons and interest in their value or uncollectible decrease the issuer and the borrower. ness and bankruptcy of Regarding derivative transactions, the Group utilizes derivatives to hedge risks on assets held. These also involve derivatives to hedge risks on assets held. utilizes Group derivative transactions, the Regarding risks. market risks and credit NKSJ has established “the NKSJ Group risk management basic policy” to properly identify the risk profi le held by the identify the risk profi policy” to properly risk management basic NKSJ has established “the NKSJ Group nancial sound- the fi to ensure in order the risk appropriately loss and to control to avoid unforeseen in order Group, that aims to maximize the enterprise value of (ERM) structure ness and to develop an enterprise risk management system and important mat- the prescribe that regulations In addition, NKSJ has applied risk management the Group. NKSJ has risk management structure. the Group’s to execution of operation necessary for developing ters relating risk management. The risk management to supervise the Group’s also established a risk management department said regulations risk management based on the Basic Policy, the status of the Group’s department has monitored on such matters. of Directors periodically to the Board and the like and has reported Through the integrated management model of investment risks, NKSJ manages investment risks related to the fi nan- to the fi NKSJ manages investment risks related the integrated management model of investment risks, Through risk, and basis, covering both market risk and credit on an integrated cial assets and liabilities held by the Group method, and monitors the sound- a daily basis pursuant to the value at risk (VaR) es the investment risks on quantifi sensitivity analyses against changes in nancial condition. In addition, NKSJ periodically makes fi ness of the Group’s scenari- stress NKSJ has established comprehensive exchange rate. Further, rate and currency stock price, interest and performs cant impact on the management of the Group a signifi os covering a range of events that could cause to avoid risks, in order risks on an integrated basis. In addition, as to credit to evaluate and measure tests stress to manage the risks and established controls limits credit NKSJ has set c borrowers, concentrating the risk on specifi appropriately. With respect to liquidity risks, NKSJ has developed a structure to implement appropriate countermeasures, such as countermeasures, to implement appropriate With to liquidity risks, NKSJ has developed a structure respect fund-raising and “crisis”, and ensuring the as “normal”, “needs care” categorizing the urgency level of funds needs of large nat- for claims paid upon occurrence to be prepared to such categorization, in order methods corresponding of bonds and the like. ural disasters, redemption Domestic insurance subsidiaries have developed equivalent risk management systems and have respectively man- have respectively Domestic insurance subsidiaries have developed equivalent risk management systems and le, establishing limits of their own as asset management policy and risk profi aged the risks based on their respective nance/investment transaction, they also have developed a system concerning With to each fi respect necessary. internal administration, such as credit risk ratings assessment and post-closing monitoring. control credit Other than the fair value of fi nancial instruments based on the market price, fair value calculated reasonably is includ- reasonably nancial instruments based on the market price, fair value calculated Other than the fair value of fi the fair value, the ed if the market price is not obtainable. In view that certain assumption is employed to measure depending on the assumption to be applied. “Notional amount” on each table in notes on might differ value resulting shows contract amounts or notional amounts of derivative transactions. These amounts do “Derivative Transactions” derivative transactions. risk regarding not show the volume of market risk or credit Carrying amount, fair value and unrealized gains and losses are as follows. Meanwhile, fi nancial instruments which as follows. Meanwhile, fi gains and losses are Carrying amount, fair value and unrealized to table. (Please refer not included in the following out their fair value are gure cult to fi diffi extremely considered are Notes) 2 for details.) (2) The nature and risk of fi (2) The nature

(3) The risk management structure regarding ﬁ regarding (3) The risk management structure

(4) Supplemental explanation about the fair value of ﬁ

2. Fair value of fi Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 68 NKSJ Holdings, Inc. AsofMarch 31,2012 (*2) (*1) AsofMarch 31,2011 (*2) (*1) oa eiaietascin 444 445 (0) [4,445] [4,444] Total derivativetransactions oa eiaietascin 723 723 (0) [7,283] [7,283] Total derivativetransactions 5 oe rss3,7 692— — 654,039 — 36,972 — 76,300 — 36,972 28,952 332,416 76,300 60,486 28,952 332,416 60,486 (7) Loans (6) Securities: (5) Moneytrusts (4) Monetaryreceivables bought (3) Receivablesunderresale agreements — (2) Callloans (1) Cashanddeposits — 691,294 — 67,440 — 78,399 — 67,440 32,273 328,528 78,399 33,490 32,273 328,528 (8) Loans 33,490 (7) Securities: (6) Moneytrusts (5) Monetaryreceivables bought (4) (3) Receivablesunderresale agreements (2) Callloans (1) Cashanddeposits oa iblte 2,0 2,2 1,625 1,625 76,196 129,625 7,407,369 129,625 128,000 7,331,172 128,000 Derivative transactions Total liabilities (1) Corporatebonds Total assets 1,369 1,369 35,359 129,369 7,546,145 129,369 128,000 7,510,786 128,000 Derivative transactions Total liabilities (1) Corporatebonds Total assets Thisfi gure represents deductions asgeneralandindividualallowanceforpossiblecredit losses. Thisfi gure represents deductionsasgeneralandindividualallowanceforpossiblecredit losses. are shownonthenetbasis.Theitemswhichare netdebtintotalare showninthebrackets []. This tablecollectivelyshowsderivativetransactions whichare includedinotherassetsand otherliabilities.Assetsandliab are shownonthenetbasis.Theitemswhichare netdebtintotalare showninthebrackets[]. This tablecollectivelyshowsderivativetransactionswhichare includedinotherassetsandliabilities.Assetsliab eevbe ne euiisbroigtascin 0303,7 — 30,370 30,370 Receivables undersecuritiesborrowing transactions eg conigi ple o[,2][,2](0) — [2,523] [1,921] [2,522] [1,921] Hedge accountingisappliedto Hedge accountingisnotappliedto eg conigi ple o[,4][,4](0) — [6,244] [1,038] [6,244] [1,038] Hedge accountingisappliedto Hedge accountingisnotappliedto rdn euiis1,5 457— — 68,510 14,557 1,246,155 4,950,816 14,557 1,177,645 4,950,816 Allowance forpossiblecredit losses Securities availableforsale Bonds heldtomaturity Trading securities — — 158 30,339 16,289 5,034,489 17,045 1,212,955 16,289 5,034,489 1,182,616 16,887 Allowance forpossiblecredit losses Securities availableforsale Policy reserve matchingbonds Bonds heldtomaturity Trading securities (*2) (*2) : : (*1) (*1) arigaon Fairvalue Carrying amount arigaon Fairvalue Carrying amount 9,0 9,6 4,862 694,863 690,000 5,2 6,1 7,685 660,711 653,025 (1,293) (1,014) ilities from derivativetransactions ilities from derivativetransactions Unrealized gainsandlosses Unrealized gainsandlosses (Millions ofyen) (Millions ofyen) Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

69 information providers. information providers. the fi scal year. the fi tion and the price quoted ges, the price released by ges, the price released ue of quoted derivatives is fair value approximates the fair value approximates on the amount expected to the price at exchanges, the isclosure. ed in the scope of fair value nterest rate of new loans by nterest re not included in the scope re rities is based on the price at ially, borrowers who are high- who are borrowers ially, NKSJ Holdings, Inc. isk premium and liquidity pre- isk premium mated future cash fl ows or (b) cash fl mated future esponding period, adding credit esponding period, adding credit llows. These fi nancial instruments nancial llows. These fi (Millions of yen) As of March 31, 2011As of March 31, 2012 As of March Money trustsDomestic bondsDomestic stocks securitiesForeign Others Total 1,000 420 110,735 44,176 25,040 181,373 110,565 1,000 119 42,865 174,606 20,055 book value, the book value is presented as the fair value. The fair value of the domestic bonds is based on the price at exchan as the fair value. The fair value of presented book value, the book value is by the average price released the price quoted by counterparties and the over-the-counter Japan Securities Dealers Association, securities is based on of foreign stocks is based on the price at exchanges. And the fair value The fair value of the domestic the fair val by the industry association and the price quoted by counterparties. As for derivative transactions, price released at the end of exchange rate is based on forward exchanges foreign based on the price at exchanges and the fair value of forward mium thereto. by counterparties. The fair value of the domestic stocks is based on the price at exchanges. And the fair value of foreign secu on the price at exchanges. And the fair value of foreign by counterparties. The fair value of the domestic stocks is based exchanges and the price quoted by counterparties. i which is discounted by the expected and interest or the total amount of principal thereto, and liquidity premium risk premium legally or substant in bankruptcy the types and categories of internal as loans to borrowers ratings. For the loans categorized values of esti (a) the present the fair values are special mention, and some borrowers to go bankrupt in the future ly probable based calculated losses are losses. As for (b), because the estimated credit estimated credit the carrying amount less current said amount. the by collateral and guarantee, the fair value approximates be covered The fair value is the amount of future collection cash fl ow of each loan which is discounted by the risk free rate for the corr ow of each loan which is discounted by the risk free collection cash fl The fair value is the amount of future r period, adding credit rate for the corresponding ow discounted by the risk free cash fl The fair value is the amount of future As all are short term and the fair value approximates the book value, the book value is presented as the fair value. as the value, the book value is presented the book term and the fair value approximates short As all are fair value. as the value, the book value is presented the book term and the fair value approximates short As all are fair value. as the value, the book value is presented the book term and the fair value approximates short As all are quoted by counterparties. The fair value is based on the price short term and the asset is as follows. As bank deposit, etc. are nancial instruments managed as trust The fair value of the fi Dealers Associa by Japan Securities exchanges, the price released The fair value of the domestic bonds is based on the price at disclosure. As domestic stocks are unlisted stocks and do not have quoted market prices, they are not included in the scope of fair value d unlisted stocks and do not have quoted market prices, they are As domestic stocks are unlisted stocks or investments mainly in unlisted stocks and do not have quoted market prices, they a securities are As foreign of fair value disclosure. not includ estate or in unlisted stocks and do not have quoted market prices, they are investments mainly in real As others are Carrying amounts of the fi nancial instruments which are considered extremely diffi cult to fi gure out their fair value are as fo are out their fair value gure cult to fi diffi extremely considered nancial instruments which are Carrying amounts of the fi not included in “(5) Money trusts” or “(6) Securities.” are Derivative transactions Derivative to the notes on “Derivative Transactions.” Please refer 2.

(7) Loans (7) bonds Liabilities Corporate (1) Notes) nancial instruments fair value of ﬁ 1. Calculation methods for the Assets (1) Cash and deposits (2) Call loans agreements (3) Receivables under resale trusts bought Monetary receivables (4) Money (5) Securities (6) Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 70 NKSJ Holdings, Inc. AsofMarch 31,2011 4. AsofMarch 31,2012 AsofMarch 31,2011 3.Theredemption schedulesaftertheconsolidatedbalancesheetdateformonetaryreceivables andsecuritieswhichhavematur (*) (*) oa ,2 ,4 ,4 6 8 131,901 0 128,000 3,901 480 — 355 125 960 — 822 — 138 1,745 — 1,601 143 2,340 6,910 2,171 — 168 2,527 2,635 2,327 — 200 1,020 Total Lease obligations Long-term borrowings Corporate bonds Loans Others oa ,0,9 ,8,9 0,5 1,802,994 906,052 1,588,295 1,006,190 Total oeg euiis3,0 0,2 3,7 57,433 12,200 240,969 15 607,256 239,371 44,400 59,500 3,380 138,201 — 711,503 — 299,782 1,363 204,222 — 36,997 19,605 362,863 42,595 — 70,773 — 467,138 — 21,463 37,708 101,679 1,000 167,476 38,951 15,947 25,150 — — 78,691 — 7,434 4,581 40,002 6,487 11,257 380 — 51,034 7,284 76,300 4,600 221,576 327,234 Foreign securities 1,214 14,800 Corporate bonds Municipal 538,440 bonds Government bonds 16 200,593 2,149 Fixed maturitysecuritiesavailableforsale: 60,487 138,797 6,680 Foreign securities 51,900 Corporate 68,000 1,500 bonds Municipal 313,763 bonds — Government 277,655 622,713 bonds Bondsheldtomaturity: 435,995 1,682 — 46,582 1,051 Securities: 22,081 600 Monetary receivables bought — 63,191 449,686 Receivables underresale agreements — Call loans 56,673 52,109 — Deposits 88,947 — 21,622 12,758 — 2,379 162,787 64,528 102,434 — 11,130 — — 25,872 7,201 — 20,057 4,325 3,178 Loans Others 7,620 Foreign securities — Corporate bonds 78,399 Municipal 190 bonds — 324,103 Government bonds Fixedmaturitysecuritiesavailableforsale: Government bonds Policyreserve matchingbonds: 33,490 Foreign securities Corporate bonds 30,370 Municipal bonds Government bonds Bondsheldtomaturity: Securities: Monetary receivables bought Receivables undersecuritiesborrowing transactions Receivables underresale agreements Call loans Deposits oa 8,8 ,9,0 1,2 1,647,993 911,727 1,793,509 985,286 Total The contractualmaturitiesofthecorporatebonds,long-termborrowings andleaseobligationsaftertheconsolidatedbalancesh highly probable togobankruptinthefuture isnotincluded. 1,585 millionyenofloanswhichare regarded asuncollectiblesuchloanstoborrowers inbankruptcylegallyorsubstantiall highly probable togobankruptinthefuture isnotincluded. 1,782 millionyenofloanswhichare regarded asuncollectiblesuchloanstoborrowers inbankruptcylegallyorsubstantiall (*) (*) Due within1year 1 yearthrough 2years Due after Due within Due within 8,3 1,2 0,7 50,109 108,272 310,527 181,035 0,7 0,4 1,1 52,831 119,212 309,844 204,072 1 year 1 year 2 yearsthrough 3years Due after Due after1yearthrough Due after1yearthrough 5 years 5 years 3 yearsthrough 4years Due after Due after5yearsthrough Due after5yearsthrough 10 years 10 years 4 yearsthrough 5years Due after y andtoborrowers whoare y andtoborrowers whoare ity date eet date Due after5years Due after Due after 10 years 10 years (Millions ofyen) (Millions ofyen) (Millions ofyen) Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

71 (Millions of yen) (Millions of yen) (Millions of yen) (Millions of yen) (Millions of yen) Due after 5 years and losses and losses and losses Unrealized gains Unrealized Unrealized gains Unrealized gains Unrealized NKSJ Holdings, Inc. Due after 4 years through 5 years 4 years through Due after 3 years through 4 years 3 years through Due after Carrying amount Fair value Carrying amount Fair value Carrying amount Fair value (517) 318 2 years through 3 years 2 years through As of March 31, 2011As of March 2012 31, As of March Due after 1 year through 2 years 1 year through Domestic bondsDomestic bonds 10,397 6,489 10,653 6,392 256 (97) Domestic bonds securitiesForeign SubtotalDomestic bonds 1,142,287 securitiesForeign 24,878 Subtotal 1,210,414 1,167,165 1,235,962 4,369 68,797 6,110 25,548 68,127 10,480 10,193 (287) 4,367 5,825 670 (2) (284) Domestic bonds securitiesForeign SubtotalDomestic bonds 995,987 securitiesForeign 35,918 Subtotal 1,028,399 137,065 1,031,906 1,064,881 13,644 32,974 36,481 134,472 32,411 148,074 150,709 (2,635) 13,601 562 (2,592) (42) Due within 1 year Corporate bondsLong-term borrowingsLease obligations Total 165 — 2,564 2,730 132 — 2,001 2,134 129 1,227 — 1,357 120 760 — 880 104 223 — 327 3,745 128,000 0 131,745 Securities whose fair value doesn’t exceed exceed Securities whose fair value doesn’t their carrying amount Total 16,887 17,045 158 Securities whose fair value exceeds their carrying amount Securities whose fair value exceeds their carrying amount exceed Securities whose fair value doesn’t their carrying amount Total 1,177,645 1,246,155 68,510 Unrealized gains and losses recognized in losses recognized gains and Unrealized statements of income Securities whose fair value exceeds their carrying amount Securities whose fair value doesn’t exceed Securities whose fair value doesn’t their carrying amount Total 1,182,616 1,212,955 30,339 3. Policy reserve matching bonds 3. Policy reserve 31, 2011 As of March 31, 2012 As of March 2. Bonds held to maturity 31, 2011 As of March 31, 2012 As of March securities 1. Trading Securities 9. Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 72 NKSJ Holdings, Inc. AsofMarch 31,2012 2. 1. Notes) AsofMarch 31,2011 4. Securitiesavailableforsale None. AsofMarch 31,2012 5. Securitiesavailableforsalesoldduringthefi 2. 1. Notes) FiscalyearendedMarch 31,2011 oa ,9,1 ,2,1 474,200 4,525,518 4,999,719 423,998 4,657,441 Total 5,081,440 doesn’t exceedtheircost Securities whosecarryingamount exceeds theircost Securities whosecarryingamount Total doesn’t exceedtheircost Securities whosecarryingamount exceeds theircost Securities whosecarryingamount oa 2,4 2,3 8,995 5,018 2,338 1,512 26,138 2,481 18,711 126 4,875 21770 420,947 88,613 60,320 271,796 Total Others Foreign securities Domestic stocks Domestic bonds balance sheetsare includedin“Others”above. Certifi cate ofdepositclassifi ed ascashanddepositsbenefi cial interests intheloantrustsclassifi ed asmonetaryrecei Securities availableforsalewhichare considered extremely diffi cult tofi gure outtheirfairvalueare notincludedinthea balance sheetsare includedin“Others”above. Certifi cate ofdepositclassifi ed ascashanddepositsbenefi cial interests inthe loantrustsclassifi ed asmonetaryrecei Securities availableforsalewhichare considered extremely diffi cult tofi gure outtheirfairvalueare notincludedinthea rcesfo ae an nslsLosses onsales Gainsonsales Proceeds from sales tes3,1 359(674) (125,176) 33,589 1,080,525 (49,578) 3,381 (72,130) (2,792) 599,377 955,348 32,914 443,134 44,281 474,666 40,525 3,444,993 129,135 478,256 393,555 77,213 402,536 47,662 4,044,370 551,010 Subtotal 126,342 514,384 Others Foreign securities 2,335,317 Domestic stocks 591,536 Domestic bonds 992,640 (928) Subtotal 2,412,530 Others (159,196) Foreign securities Domestic stocks 29,810 Domestic bonds (75,905) 3,385 1,637,889 (76,607) (5,755) 583,195 28,882 1,478,692 694,896 50,963 552,661 32,641 3,019,552 360,520 498,965 618,991 48,202 476,054 54,348 3,602,747 395,039 Subtotal 354,765 Others 549,193 Foreign securities 2,024,355 Domestic stocks 427,681 Domestic bonds 1,048,158 Subtotal 2,072,558 Others Foreign securities Domestic stocks Domestic bonds scal yearsendedMarch 31,2011and2012 arigaon Cost Carrying amount arigaon Cost Carrying amount bove table. bove table. vables boughtintheconsolidated vables boughtintheconsolidated Unrealized gains Unrealized gains and losses and losses (Millions ofyen) (Millions ofyen) (Millions ofyen) Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

73 (Millions of yen) (Millions of yen) NKSJ Holdings, Inc. scal years ended March 31, years ended March scal scal years ended March 31, 2011 scal years ended March 890 544 As of March 31, 2011As of March 31, 2012 As of March Proceeds from sales from Proceeds Gains on sales on sales Losses For the fi scal year ended March 31, 2012, the holding purpose of securities which were previously classifi ed as held classifi previously 31, 2012, the holding purpose of securities which were ended March scal year For the fi yen) changed to available for sale. This change is due to changes in to maturity (carrying amount: 86,371 million the merger of domestic consolidated life insurance arising from cation policy of securities held to maturity, classifi subsidiaries. As a result, compared to the amounts based on the previous classifi cation, amount of securities increased 1,029 cation, amount of securities increased classifi to the amounts based on the previous compared As a result, gains and losses on securities available for 317 million yen and unrealized tax assets decreased million yen, deferred 712 million yen. sale, net of tax increased For the fi scal year ended March 31, 2011, impairment losses on securities available for sale (excluding securities 31, 2011, impairment losses scal year ended March For the fi out their fair value) amount to 20,124 million yen gure cult to fi diffi extremely considered available for sale which are avail- securities: 393 million yen), and impairment losses on securities (domestic stocks: 19,731 million yen, foreign out their fair value amount to 381 million yen (domestic gure fi cult to diffi extremely considered able for sale which are securities: 47 million yen). stocks: 333 million yen, foreign For the fi scal year ended March 31, 2012, impairment losses on securities available for sale (excluding securities 31, 2012, impairment losses scal year ended March For the fi out their fair value) amount to 10,676 million yen gure cult to fi diffi extremely considered available for sale which are 177 securities: 891 million yen, others: 9,384 million yen, foreign (domestic bonds: 222 million yen, domestic stocks: gure cult to fi diffi extremely considered available for sale which are million yen), and impairment losses on securities (domestic stocks: 348 million yen, others: 20 million yen). Of this out their fair value amount to 368 million yen expens- ed as other investment classifi the loan trusts, which are in cial interests amount, impairment losses on benefi amount to 177 million yen. es in the consolidated statements of income, Basically, NKSJ and its domestic consolidated subsidiaries recognize impairment losses on securities if fair value impairment losses on NKSJ and its domestic consolidated subsidiaries recognize Basically, scal year. their cost at the end of the fi from declines by 30% or more Securities for which holding purposes are changed during the fi holding purposes are Securities for which and 2012 Securities for which impairment losses are recognized during the fi during recognized are Securities for which impairment losses 2011 and 2012 Unrealized gains and losses recognized in gains and losses recognized Unrealized statements of income Domestic bondsDomestic stocks securitiesForeign Others Total 344,871 131,812 325,639 802,552 228 7,333 37,322 7,627 52,355 73 13,668 763 20,185 34,675 58 1. Money trusts for trading purposes 2. Money trusts held to maturity 31, 2011 As of March None. 31, 2012 As of March None. 31, 2012 Fiscal year ended March 6.

Money Trusts 10. Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 74 11. NKSJ Holdings, Inc. DerivativeTransactions As ofMarch 31,2011 (1) Currency derivatives 1. Derivativetransactionstowhichhedgeaccountingisnotapplied Note) Moneytrustswhichare considered extremely diffi cult tofi gure outtheirfairvalueare notincludedintheabovetable. As ofMarch 31,2012 Note) Moneytrustswhichare considered extremely diffi cult tofi gure outtheirfairvalueare notincludedintheabovetable. As ofMarch 31,2011 3. Moneytrustsclassifi Thefairvalueisbasedonthe pricequotedbycounterparties. 2. Amountswithanasterisk(*)represent the amountoftheoptionpremiums. (2)Currency options Thefairvalueiscalculated using forward exchangerate. (1)Forward foreign exchanges 1. Calculationmethodsforthefairvalue Notes) ER13—33 38 73 — (4) 3 38 (145) 73 — 5,300 (1,187) (4) — — (145) 5,911 — (1,187) — Total 183 — EUR 2,598 — Put: 7,398 Long: 183 — EUR 10,243 Call: 36,566 Short: Currency options: EUR TRY USD Long: 362 (20) GBP USD EUR Short: Forward foreign exchanges: Over-the-counter transactions: 362 20,302 20,281 Money trusts Money trusts As forforward foreign exchanges betweenforeign currency andtheotherforeign currency, thefairvalueiscalculatedusingfo between theotherforeign currency andyenonthetransactiondateofforward foreign exchanges. ed asotherthantradingpurposesorheldtomaturity arigaon otUnrealized gainsandlosses Cost Unrealized gainsandlosses Carrying amount Cost Carrying amount Notional amount *— (6) (1) — (7) —* —* 6* 6* Due after1year Fair value 128 (1,228) (1,228)

Unrealized gains rward exchangerate and losses (Millions ofyen) (Millions ofyen) (Millions ofyen) Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

75 (Millions of yen) (Millions of yen) (Millions of yen) and losses and losses and losses rward exchange rate rward Unrealized gains Unrealized Unrealized gains Unrealized Unrealized gains Unrealized NKSJ Holdings, Inc. 137 137 (773) (773) (1,286) (1,286) Fair value Fair value Fair value Due after 1 year Due after 1 year Due after 1 year amount amount amount Notional Notional Notional between the other foreign currency and yen on the transaction date of forward foreign exchanges. foreign and yen on the transaction date of forward currency between the other foreign As for forward foreign exchanges between foreign currency and the other foreign currency, the fair value is calculated using fo currency, and the other foreign currency exchanges between foreign foreign As for forward Calculation methods for the fair value The fair value is based on the closing price at major exchanges. Calculation methods for the fair value The fair value is based on the closing price at major exchanges. Total Market transactions: Equity index futures: Short Total Market transactions: Equity index futures: Short 6,546 — 39,379 (773) (773) — 137 137 Over-the-counter transactions: Over-the-counter exchanges: foreign Forward Short: EUR USD GBP Long: EUR TRY USD Total 37,229 17,253 243 9,307 — 2,691 — 2,368 — — (1,043) — (265) — (1,043) 0 29 (265) (5) (2) 0 29 (5) (2) Note) Note) 31, 2012 As of March Note) Calculation methods for the fair value exchange rate. exchanges is calculated using forward foreign The fair value of forward (2) Equity derivatives 31, 2011 As of March As of March 31, 2012 As of March Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 76 NKSJ Holdings, Inc. AsofMarch 31,2012 Note) AsofMarch 31,2011 (3) Bondderivatives AsofMarch 31,2011 (4) Others Note) Thefairvalueiscalculated based onthecontracttermandotherelementsofcontract. 2. Amountswithanasterisk(*)represent the amountoftheoptionpremiums. (3)Earthquakederivatives Thefairvalueiscalculated based onthecontracttermandotherelementsofcontract. (2)Weather derivatives Thefairvalueisbasedonthepricequotedbycounterparties. (1)Credit derivatives 1. Calculationmethodsforthefairvalue Notes) og100—()(1) 17 2,610 (1) 10 17 201 3,195 — 3,560 9,000 597 (10) 33 1,000 9,000 Total (10) Long 33 Short Earthquake derivatives: — Short (2) Weather derivatives: — Long Short Credit 315 derivatives: Over-the-counter transactions: 2,947 (2) — Total Long 1,730 Short Bond futures: Market transactions: Total Long Bond futures: Market transactions: The fairvalueisbasedontheclosingpriceatmajorexchanges. Calculation methodsforthefairvalue The fairvalueisbasedontheclosingpriceatmajorexchanges. Calculation methodsforthefairvalue Notional Notional Notional amount amount amount 1*24 7(236) 103 77 (0) 234* 0* 314* 103* 1 *()12 (9) 7* 21* Due after1year Due after1year Due after1year Fair value Fair value Fair value 3(104) 83 23 2 (2) (2) Unrealized gains Unrealized gains Unrealized gains and losses and losses and losses (Millions ofyen) (Millions ofyen) (Millions ofyen) Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

77 (Millions of yen) (Millions of yen) (8,068) Fair value and losses Unrealized gains Unrealized NKSJ Holdings, Inc. 86 (129) Fair value Due after 1 year amount Notional Due after 1 year 42* 27* (72) (29) 133*392* 0* 265* (0) 156 133 (235) amount Notional Securities available for sale Type Main hedged items exchanges: Short: USD EUR CAD GBP AUD 142,409 115,637 7,899 5,203 4,999 — — — — (2,094) — (4,989) (397) (113) (473) accounting Calculation methods for the fair value exchange rate. The fair value is calculated using forward Methods for hedge Fair value hedge foreign Forward Total Over-the-counter transactions: Over-the-counter derivatives: Credit Short derivatives: Weather ShortEarthquake derivatives: Short Long Total 9,000 1,191 8,000 4,370 788 3,933 2 10 2,124 2 Note) Notes) 1. Calculation methods for the fair value derivatives Credit (1) The fair value is based on the price quoted by counterparties. derivatives Weather (2) The fair value is calculated based on the contract term and other elements of the contract. Earthquake derivatives (3) the amount of the option premiums. 2. Amounts with an asterisk (*) represent The fair value is calculated based on the contract term and other elements of the contract. accounting is applied 2. Derivative transactions to which hedge derivatives (1) Currency 31, 2011 As of March 31, 2012 As of March Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 78 NKSJ Holdings, Inc. AsofMarch 31,2012 Note) AsofMarch 31,2011 (2) Interest ratederivatives Note) AsofMarch 31,2012 Note) Total interest rateswaps treatment forcertain The exceptional Insuranceliabilities Interest rateswaps: Deferred hedge Total interest rateswaps treatment forcertain The exceptional Insuranceliabilities Interest rateswaps: Deferred hedge Total Forward foreign Fair valuehedge Methods forhedge Methods forhedge Methods forhedge The fairvalueisbasedonthepricequotedbycounterpartiesorcalculateddiscountingfuture cashfl ow tot Calculation methodsforthefairvalue The fairvalueiscalculatedusingforward exchangerate. Calculation methodsforthefairvalue The fairvalueisbasedonthepricequotedbycounterpartiesorcalculated discountingfuture cashfl ow tot Calculation methodsforthefairvalue accounting accounting accounting Receipt Paymentfifl x / oat Borrowings Interest rateswaps: Payment Receiptfifl x / oat Receipt Paymentfifl x / oat Borrowings Interest rateswaps: Payment Receiptfifl x / 6,588 oat 9,050 12,315 110,178 190,753 AUD CAD GBP EUR USD Short: exchanges: yeMainhedgeditems Type Mainhedgeditems Type Mainhedgeditems Type for sale Securities available 60 20 (0) 20 5,545 60 83,000 83,000 Notional Notional Notional amount amount amount 3008,0 8,319 83,000 83,000 0—(0) — 20 Due after1year Due after1year Due after1year (31) (343) (628) (5,752) (7,808) — — — — — he present value. he present value. (14,564) Fair value Fair value Fair value 8,319 5,545 (Millions ofyen) (Millions ofyen) (Millions ofyen) Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

79 (Note 2) (Millions of yen) (Millions of yen) 2012) March 31, 2012 March Fiscal year ended in retirement benefi t plans. benefi in retirement NKSJ Holdings, Inc. (April 1, 2011 to March 31, (April 1, 2011 to March ce cost.” ry merged by a consolidated subsidiary. — (608) 2011) (104,475) (107,749) March 31, 2011 March Fiscal year ended As of March 31, 2011As of March 31, 2012 As of March (April 1, 2010 to March 31, (April 1, 2010 to March t obligation t t plans t t expenses t t obligation t Consolidated subsidiaries adopt the simplifi ed accounting method for the calculation of retirement benefi t obligation for certa benefi the calculation of retirement ed accounting method for Consolidated subsidiaries adopt the simplifi Net amount of retirement benefi t obligation on benefi Net amount of retirement the balance sheets (c+d+e) g. Prepaid pension cost pension g. Prepaid ts (f-g) benefi h. Reserve for retirement (104,793) 318 (f+g+h)i. Total (107,983) 233 17,703 18,223 a. Service cost (Note 1) costb. Interest on plan assetsc. Expected return difference actuarial d. Amortization of unrecognized costs prior service e. Amortization of unrecognized f. Subtotal (a+b+c+d+e)ned contribution pension plan g. Contributions paid to the defi h. Others 1,925 5,583 (67) (470) 7,902 2,420 5,808 2,829 (12) 12,120 (424) 8,189 2,850 13,024 a. Retirement benefi t obligation benefi a. Retirement b. Plan assetst obligation (a+b) benefi c. Unfunded retirement difference actuarial d. Unrecognized service costs prior e. Unrecognized f. (104,190) (179,490) (259) (106,008) (25) (179,138) 75,300 (1,740) — 73,129 In addition to a defi ned contribution pension plan, Sompo Japan provides a lump-sum payments retirement plan payments retirement a lump-sum contribution pension plan, Sompo Japan provides ned In addition to a defi ts trust. benefi up a retirement t plans. Sompo Japan sets ned benefi fund system as defi and a corporate pension In addition to a defi ned contribution pension plan, NIPPONKOA provides defi ned benefi t plans with a lump-sum pay- ned benefi defi pension plan, NIPPONKOA provides ned contribution In addition to a defi both corporate pension plan plan and a self-administered plan, a contract-type corporate pension ments retirement the have not yet reached ts but or who is eligible for employees’ benefi receive employees who already for retired t trust. benefi age. NIPPONKOA also sets up a retirement pension commencement The other domestic consolidated subsidiaries provide a lump-sum payments retirement plan as defi ned benefi t plans ned benefi plan as defi a lump-sum payments retirement subsidiaries provide The other domestic consolidated ned contribution pension plan. in addition to a defi Certain foreign consolidated subsidiaries have retirement benefi t plans such as defi ned contribution type and defi ned ned contribution type and defi t plans such as defi benefi consolidated subsidiaries have retirement Certain foreign t type. benefi t plan for employees of a subsidia benefi t and loss due to partial termination of the retirement profi 2. The amount represents Notes) in “a. Servi included ed accounting method are t plans which adopt simplifi benefi t expenses for retirement benefi 1. Retirement benefi 4. Basis of calculation of retirement ts benefi retirement of projected a. Allocation method Straight-line method, point method Note) Note) benefi 3. Retirement 1. Outline of retirement benefi 1. Outline of retirement

2. Retirement benefi 2. Retirement Retirement Benefi ts Benefi Retirement 12. Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 80 13. NKSJ Holdings, Inc. StockOptions 2. Recorded amountonprofi 1. Recorded amountandaccountwhichincludesstockoptionexpense e.Amortizationperiodofactuarialdifference d.Amortizationperiodofpriorservicecosts c.Expectedrateofreturnonplanassets b.Discountrate an nrvra fsokaqiiinrgt 3 — 510 631 Gains onreversal ofstockacquisitionrights Operating, generalandadministrativeexpenses occurs.) over certainyearswithintheaverageremaining serviceyearsofemployeesaseachfi scal yearwhendifference 10 to13years(Actuarialdifference isamortizedfrom thefollowingfi scal yearbyusingthestraight-line method age remaining serviceyearsofemployeesat thetimeofoccurrence.) 5 to10years(Priorservicecostsare amortized usingthestraight-linemethodovercertainyearswithinaver- Fiscal yearendedMarch 31,2011 Fiscal yearendedMarch 31,2011 (April 1,2010toMarch 31,2011) (April 1,2010toMarch 31,2011) .%40 0.0%–1.5% 1.5%–1.8% 0.0%–4.0% 1.5%–2.0% t resulting from forfeiture ofstockoptions Fiscal yearendedMarch 31,2012 Fiscal yearendedMarch 31,2012 (April 1,2011toMarch 31,2012) (April 1,2011toMarch 31,2012) Fiscal yearended Fiscal yearended March 31,2011 March 31,2011 Fiscal yearended Fiscal yearended March 31,2012 March 31,2012 (Millions ofyen) (Millions ofyen) Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

81 Apr. 1, 2010 – Apr. Jun. 28, 2016 Apr. 1, 2010 – Apr. Jun. 28, 2016 Apr. 1, 2010 – Apr. Jun. 28, 2015 Apr. 1, 2010 – Apr. Jun. 28, 2015 Apr. 1, 2010 – Apr. Jun. 29, 2014 Apr. 1, 2010 – Apr. Jun. 29, 2014 Apr. 1, 2010 – Apr. Jun. 27, 2013 Apr. 1, 2010 – Apr. Jun. 27, 2013 Apr. 1, 2010 – Apr. Jun. 27, 2012 Apr. 1, 2010 – Apr. Aug. 10, 2034 Apr. 1, 2010 – Apr. Jun. 27, 2012 Apr. 1, 2010 – Apr. Aug. 11, 2033 Apr. 1, 2010 – Apr. Jun. 27, 2012 Apr. 1, 2010 – Apr. Jun. 27, 2017 Apr. 1, 2010 – Apr. Jun. 27, 2012 Apr. 1, 2010 – Apr. Jun. 27, 2017 NKSJ Holdings, Inc. Grant date period Exercise Apr. 1, 2010 Apr. Apr. 1, 2010 Apr. Apr. 1, 2010 Apr. Apr. 1, 2010 Apr. Apr. 1, 2010 Apr. Apr. 1, 2010 Apr. Apr. 1, 2010 Apr. Apr. 1, 2010 Apr. Apr. 1, 2010 Apr. Apr. 1, 2010 Apr. Apr. 1, 2010 Apr. Apr. 1, 2010 Apr. Apr. 1, 2010 Apr. Apr. 1, 2010 Apr. Apr. 1, 2010 Apr. Apr. 1, 2010 Apr. options granted Number of stock Common stock: Common stock: 316,000 [79,000] stocks Common stock: 324,000 [81,000] stocks Common stock: 365,000 [91,250] stocks Common stock: 363,000 [90,750] stocks Common stock: 262,000 [65,500] stocks Common stock: 255,000 [63,750] stocks Common stock: 130,000 [32,500] stocks Common stock: 90,000 [22,500] stocks Common stock: 30,000 [7,500] stocks Common stock: 747,100 [186,775] stocks Common stock: 20,000 [5,000] stocks Common stock: 297,300 [74,325] stocks Common stock: 10,000 [2,500] stocks Common stock: 382,000 [95,500] stocks Common stock: 125,000 [31,250] stocks 403,000 [100,750] stocks by types of shares Title and number of grantees Directors and executive offi cers of Sompo Japan: 17 cers of Sompo Japan: and executive offi Directors Others: 24 Directors and executive offi cers of Sompo Japan: 11 cers of Sompo Japan: and executive offi Directors Others: 30 Directors and executive offi cers of Sompo Japan: 11 cers of Sompo Japan: and executive offi Directors Others: 31 Directors and executive offi cers of Sompo Japan: 11 cers of Sompo Japan: and executive offi Directors Others: 35 Directors and executive offi cers of Sompo Japan: 11 Japan: cers of Sompo offi and executive Directors Others: 34 Directors and executive offi cers of Sompo Japan: cers of Sompo offi and executive Directors 6 Others: 26 Directors and executive offi cers of Sompo Japan: cers of Sompo offi and executive Directors 5 Others: 27 Directors and executive offi cers of Sompo Japan: cers of Sompo offi and executive Directors 3 Others: 18 Directors and executive offi cers of Sompo Japan: cers of Sompo offi and executive Directors 3 Others: 12 Directors and executive offi cers of Sompo Japan: cers of Sompo offi and executive Directors 0 Others: 3 Directors and executive offi cers of Sompo Japan: 41 cers of Sompo Japan: and executive offi Directors Others: 1 Directors and executive offi cers of Sompo Japan: cers of Sompo offi and executive Directors 1 Others: 1 Directors and executive offi cers of Sompo Japan: 27 cers of Sompo Japan: and executive offi Directors Others: 1 Directors and executive offi cers of Sompo Japan: cers of Sompo offi and executive Directors 0 Others: 1 Directors and executive offi cers of Sompo Japan: 17 cers of Sompo Japan: and executive offi Directors Others: 24 Directors and executive offi cers of Sompo Japan: and executive offi Directors 1 Others: 7 13th issue 12th issue 11th issue 10th issue 9th issue 8th issue 7th issue 6th issue 5th issue 4th issue 16th issue 3rd issue 3rd 15th issue 2nd issue 14th issue 1st issue of stock acquisition rights of NKSJ 1st to 16th issue of stock acquisition rights of NKSJ are stock options transferred from Sompo Japan to NKSJ and Sompo Japan to NKSJ from stock options transferred acquisition rights of NKSJ are 1st to 16th issue of stock on NIPPONKOA to NKSJ from stock options transferred acquisition rights of NKSJ are 17th to 22nd issue of stock stock acquisition rights of NKSJ are to 24th issue of stock of NKSJ, April 1, 2010. 23rd the date of establishment options granted by NKSJ. 3. Contents, size and its changes of stock options 3. Contents, size and options (1) Contents of stock Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 82 NKSJ Holdings, Inc.

3.Requisiteserviceperiodisnotshown. 4. 2.Stockoptionsare vestedonthegrantdate. 1. Notes) 17th issue 18th issue 19th issue 20th issue 21st issue 22nd issue 23rd issue 24th issue respectively. Japan orNIPPONKOA,theactualnumberofpersonswhom23rd and24thissueofstockacquisitionrightsNKSJare granteda and non-fulltimedirectors. Sinceseveraldirectors andexecutiveoffi cers ofNKSJare concurrently servedasdirector/executi 23rd andnumberofgrantees”exc Concerning to24thissueofstockacquisitionrightsNKSJ,“Directors” inthecolumn“Title time ofgrantbyNIPPONKOAbutwhoalready retired orresigned thepositionbygrantdateNKSJ. andnumberofgrantees”repres 17thto22ndissueofstockacquisitionrightsNKSJ,“Others”inthecolumn“Title Concerning time ofgrantbySompoJapanbutwhoalready retired orresigned thepositionbygrantdateNKSJ. andnumberofgrantees”represe 1stto16thissueofstockacquisition rightsofNKSJ,“Others”inthecolumn“Title Concerning the brackets[]are calculatedconsideringtheeffect ofthereverse splitofstocks. carried outareverse splitofstockstocombinecommonataratiofourshares tooneshare onOctober1,2011.Then Number ofstockoptionsinthecolumn“Numbergrantedbytypesshares” isindicatedbyconvertingtonumber Others: 7 5 Directors andexecutiveoffi cers ofNIPPONKOA: Others: 11 7 Directors andexecutiveoffi cers ofNIPPONKOA: Others: 2 12 Directors andexecutiveoffi cers ofNIPPONKOA: Others: 2 12 Directors andexecutiveoffi cers ofNIPPONKOA: Others: 3 16 Directors andexecutiveoffi cers ofNIPPONKOA: Others: 3 21 Directors andexecutiveoffi cers ofNIPPONKOA: ietr n xctv f eso KJ 7 26 Directors andexecutiveoffi cers ofNIPPONKOA: Directors andexecutiveoffi cers ofSompoJapan: 40 Directors andexecutiveoffi cers ofNKSJ: AAEETC. T. 1 12 MANAGEMENT CO.,LTD.: Directors ofSOMPOJAPAN NIPPONKOAASSET Life Insurance,Inc.: Directors andexecutiveoffi cers ofNKSJHimawari 8 26 Directors andexecutiveoffi cers ofNIPPONKOA: Directors andexecutiveoffi cers ofSompoJapan: 43 Directors andexecutiveoffi cers ofNKSJ: Title andnumberofgrantees Title by typesofshares [35,775] stocks 143,100 Common stock: [50,400] stocks 201,600 Common stock: [27,675] stocks 110,700 Common stock: [30,375] stocks 121,500 Common stock: [61,875] stocks 247,500 Common stock: [88,425] stocks 353,700 Common stock: [349,450] stocks 1,397,800 Common stock: 372,300 stocks Common stock: Number ofstock options granted Apr. 1,2010 Apr. 1,2010 Apr. 1,2010 Apr. 1,2010 Apr. 1,2010 Apr. 1,2010 Aug. 16,2010 Nov. 1,2011 rn aeExercise period Grant date ludes outsidedirectors Jun. 29,2024 Apr. 1,2010– Jun. 29,2025 Apr. 1,2010– Mar. 27,2027 Apr. 1,2010– Mar. 17,2028 Apr. 1,2010– Mar. 16,2029 Apr. 1,2010– Oct. 7,2029 Apr. 1,2010– Aug. 16,2035 Aug. 17,2010– Oct. 31,2036 Nov. 1,2011– ve offi cer ofSompo ents granteesatthe umbers ofshares in nts granteesatthe ofshares. NKSJ re 69and86, Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

83 (Shares) 2,500 5,000 5,000 95,500 79,000 e reverse split of e reverse Number of shares Number of shares NKSJ Holdings, Inc. 0——— 0——— 0——— 0——— 0——— 31,250 — — 17,500 13,750 March 31, 2011March Vested Exercised Forfeited 31, 2012 March As all stock options are vested at the time that they are granted, items of stock options before vested are not vested are granted, items of stock options before time that they are vested at the As all stock options are shown. as of March 31, 2011, number of shares exercised and number of shares forfeited are calculated based on the assumptions that th forfeited are and number of shares exercised 31, 2011, number of shares as of March 31, 2011. March scal year ended stocks was executed at the end of the fi NKSJ carried out a reverse split of stocks to combine common stocks at a ratio of four shares to one share on October 1, 2011. to one share split of stocks to combine common stocks at a ratio of four shares NKSJ carried out a reverse Number of stock options existing for the fi scal year ended March 31, 2012 is indicated by converting to number 31, 2012 is indicated scal year ended March existing for the fi Number of stock options of shares. 15th issue16th issue17th issue18th issue19th issue20th issue21st issue22nd issue issue23rd 54,15024th issue 144,525 25,200 41,175 23,175 — — 26,100 52,650 — 77,400 — 15,025 349,450 41,375 — — 2,475 — — 6,300 — — 8,100 — — 7,875 372,300 15,300 — 16,875 39,125 — 103,150 82,100 — — 22,725 — — 34,875 — 15,075 — 18,225 37,350 60,525 — 267,350 372,300 13th issue14th issue 100,750 95,50 — — — 100,750 9th issue10th issue11th issue12th issue 88,750 91,250 81,000 79,00 — — — — — — 28,250 28,250 2,000 60,500 63,000 79,000 1st issue of stock acquisition rights 1st issue of stock acquisition of NKSJ 2nd issue issue 3rd 4th issue 5th issue6th issue7th issue8th issue 2,50 5,00 5,00 21,250 31,000 57,500 60,500 — — — — — — — — 5,000 14,750 27,500 27,500 16,250 16,250 30,000 33,000 Note) Note) options (2) Size and its changes of stock of stock options (a) Number Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 84 NKSJ Holdings, Inc.

4. Methodforestimatingthefairvaluepershare ofstockoptions 1. Notes) (b)Unitvalueinformation 3.Theamountsinthebrackets[]are calculated consideringtheeffect ofthereverse splitofstocks. 4. 2. purchase method. NIPPONKOA toNKSJ(17th22ndissueofstockacquisitionrights ofNKSJ)becausethoseare revalued underthe NKSJ alsodoesnotmakeanewestimationforthefairvaluepershare ofstockacquisitionrightstransferred from Japan toNKSJ(1st16thissueofstockacquisitionrightsNKSJ). NKSJ doesnotmakeanewestimationforthefairvaluepershare ofstockacquisitionrightstransferred from Sompo ﬁ scal yearended March 31,2012isasfollows. Method forestimatingthefairvaluepershare of24thissuestockacquisitionrightsNKSJgrantedduring the 4hise1—1,372 — 528[2,114] 532[2,128] 526[2,105] 524[2,098] 524[2,096] 1 439[1,756] 1 1 1 1 1 1 24th issue 23rd issue 22nd issue 21st issue 20th issue 19th issue 18th issue 7hise1524[2,096] 524[2,096] 525[2,101] 1 1 1 990[3,960] 1,547[6,188] 1,623[6,492] 1,598[6,392] 1,665[6,660 1,148[4,592] 1,082[4,328] 17th issue 1,167[4,668] 16th issue 901[3,604] 15th issue 735[2,940] 14th issue 574[2,296] 13th issue 581[2,324] 12th issue 712[2,848] 11th issue 10th issue 9th issue 8th issue 7th issue 6th issue 5th issue 4th issue 3rd issue 2nd issue ofNKSJ 1st issueofstockacquisitionrights NKSJ carriedoutareverse splitofstockstocombinecommonataratiofourshares tooneshare onOctober1,2011. the reverse splitofstocks. Fair valuepershare atthetimeofgrantbySompoJapanisshownintable.Theamountsbrackets[]are calculatedc the formerJapaneseCommercial Coderevised in2001andtransferred toNKSJ. Fair valuepershare onthegrantdateisnotshownbecausestockacquisitionrightswere issuedinaccordance withArticle brackets []represent exercise priceaftertheexecutionofreverse splitofstocks. 777 [3,108] Exercise price(yen)

] (Note1) (Note1) (Note1) (Note1) (Note1) (Note1) (Note1) (Note1) (Note1) (Note1) (Note1) (Note1) (Note1) (Note1) Average stockpriceat the time year endedMarch 31,2012 of exercise duringtheﬁ scal (yen) 379[1,516] 515[2,060] 470[1,880] — — — —— —— —— —— —— —— —— —— —— —— 236[944] — (Note3) (Note3) (Note3) (Note3) (Note3) (Note3) (Note3) (Note3) (Note3) Fair valuepershare on the s 280-20and280-21of 452 [1,808] 610 [2,440] 610 [2,440] 610 [2,440] 610 [2,440] 596 [2,384] 596 [2,384] 623 [2,492] 940 [3,760] onsidering theeffect of grant date(yen) The amountsinthe (Note2) (Note2) (Note2) (Note2) (Note2) (Note2) (Note2) (Note2) (Note2) (Note2) (Note4) (Note4) (Note4) (Note4) (Note4) (Note4) Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

85 As of (Millions of yen) iod from November November iod from f Sompo Japan and expected remaining expected remaining March 31, 2012 March NKSJ Holdings, Inc. (7,051) (6,638) 40,576 33,237 As of 578,505 516,805 March 31, 2011 March 24th issue of stock acquisition rights of NKSJ 24th issue of stock acquisition cant difference between the statutory income tax rate and the effective between the statutory income tax rate and the effective cant difference The volatility is calculated based on the closing price in the regular trading of common stock of NKSJ (Sompo Japan for the per trading on the closing price in the regular The volatility is calculated based 31, 2011. November 1, 2008 to October trading day from 31, 2010) on each 1, 2008 to March the historical data o under in position until retirement period is calculated based on the average terms The expected remaining NIPPONKOA. rates of Japanese government to the rate is based on the interest bonds with a maturity that corresponds interest The risk-free period. Volatility (Note 1)Volatility (Note 2) period Expected remaining 3)Expected dividends (Note rate (Note 4) interest Risk-free 3 years 80 yen 0.196% 44.57% Notes) 1. 2. 31, 2011. scal year ended March for the fi 3. The expected dividends is calculated based on the dividends 4. Deferred tax assets: Deferred reserves Underwriting Reserve for outstanding losses and claims estate Impairment losses on securities and real for tax purposes Losses carried forward ts benefi Reserve for retirement xed assets for tax purposes Intangible fi Others 50,928 69,804 27,239 323,733 45,079 48,058 29,244 36,977 44,618 286,541 25,469 33,800 Subtotal allowanceValuation tax assets deferred Total tax liabilities: Deferred gains and losses on securities available for sale Unrealized gains and losses on consolidated subsidiaries Unrealized Others tax liabilities deferred Total tax assetsNet deferred (233,431) (14,051) (206,611) (11,935) 512,928 (65,576) 456,426 (60,378) (254,534) 258,393 (225,184) 231,241 The reconciliations for the fi scal year ended March 31, 2011 and 2012 are not shown due to loss before income not shown due to loss before 31, 2011 and 2012 are scal year ended March for the fi The reconciliations interests. taxes and non-controlling “Act on Partial Amendment to the Income Tax Act, etc. in order to Create a Tax System Responding to Structural a Tax to Create order Act, etc. in “Act on Partial Amendment to the Income Tax Concerning Securing Changes of Economy and Society” (Act No. 114, 2011) and “Act on Special Measures Reconciliation of the signifi accounting tax rate after the application of tax effect Revisions of deferred tax assets and deferred tax liabilities, etc. following changes in the corporate tax assets and deferred Revisions of deferred tax rate 2. 5. Method for estimating the number of rights of stock options granted 5. Method for estimating the number of granted, this item is not applicable. vested at the time that they are As all stock options are tax liabilities tax assets and deferred 1. Major components of deferred per share the option price (1) Model to calculate The Black-Scholes model used in calculation and estimation method (2) The basic numerical values 3. Tax Effect Accounting Effect Tax 14. Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 86 15. NKSJ Holdings, Inc. BusinessCombinations

oa 868millionMalaysianringgits 496millionMalaysian ringgits 6,298millionyen Cashpaidbyadditionalcommon stockacquired Gainsonstep acquisitions (4) Total Purchase price (3) Acquisitioncostoftheacquiree ecnaeo oigrgt edatrtebsns obnto 70% 30% (2) Theperiodoffi (g)Theprimaryreason fordeterminationoftheacquirer Percentage ofvotingrightsheldafterthebusinesscombination 40% Percentage ofadditionalvotingrightsacquired onthedateofbusinesscombination Percentage ofvotingrightsheldpriortothebusinesscombination (f)Percentage ofvotingrightsacquired BerjayaSompoInsuranceBerhad (e)Nameoftheentityafterbusinesscombination Acquisitionofshares bycash (d)Legalformofbusinesscombination June15,2011 (c)Dateofbusinesscombination (b)Reasonforbusinesscombination BerjayaSompoInsuranceBerhad(“Berjaya”):Property andcasualtyinsurancebusiness (a)Thenameofacquiree anditstypeofbusiness (1) Summaryofbusinesscombination 1. Businesscombinationthrough acquisitions From May1,2011toDecember 31,2011 53,504 millionyen,andnetlossincreased 37,242 millionyen. decreased 28,389millionyen,underwritingreserves decreased 16,262millionyen,deferred incometaxesincreased onwards. Asaresult ofthischangeinthecorporatetaxrate,deferred taxassets(netofdeferred taxliabilities) 2014, and30.7%fortemporarydifferences expectedtobereversed from thefi scal yearbeginningApril1,2015 the fi scal yearsfrom thefi scal yearbeginningApril1,2012uptoandincludingthefi scal yearbeginningApril1, will generallychangefrom the36.1%usedpreviously, to33.2% fortemporarydifferences expectedtobereversed in Accordingly, theeffective statutoryincometaxrateusedto calculatedeferred taxassetsanddeferred taxliabilities fi scal yearbeginningonorafterApril1,2012. tax ratehasbeenlowered andthespecialcorporationtaxforrestoration hasbeenimposedfrom theconsolidated Earthquake” (ActNo.117,2011)were promulgated onDecember2,2011,andaccordingly, thecorporateincome Financial Resources Necessaryforthe Implementation ofMeasures torecover from theGreat EastJapan date isrecorded asinvestmentgainsandlossesontheequitymethod. As thedeemedacquisitiondateisApril30,2011,fi nancial result oftheacquiree priortothedeemed acquisition leading toacquisition Difference between acquisitioncostoftheacquiree and totalacquisitioncostofindividualtransactions Japan acquired shares ofBerjayabycash. Sompo Japan,whichisaconsolidatedsubsidiaryofNKSJ,wasdeterminedastheacquirer becauseSompo Southeast Asiaregion afterSingapore andThailandisexpectedtocontinue furtherstablemarketexpansion. ness operationsinthegrowing Malaysianproperty andcasualtyinsurancemarket,whichisthe3rd biggestin Through theacquisitionofBerjaya,NKSJandSompoJapanplantoexpandstrengthen theinsurancebusi- nancial result oftheacquiree includedintheconsolidatedfi h uiescmiain 372millionMalaysianringgits the businesscombination Fair valueofcommonstockBerjayaheldbefore nancial statements Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

87 NKSJ Holdings, Inc. Straight-line amortization over 20 years Straight-line amortization Insurance Co., Ltd. (consolidated subsidiary of NKSJ, surviving com- Merger between Sompo Japan Himawari Life Limited (consolidated subsidiary of NKSJ, merging company) pany) and NIPPONKOA Life Insurance Company, Inc. will be positioned as a strategic subsidiary within the NKSJ Himawari Life Insurance, this merger, Through the domestic property earnings second only to for the life insurance business, a core source responsible Group company, rmer management base for the new a fi will provide and casualty insurance business. And the merger companies to accelerate growth. of the pre-merger and strengths leveraging the unique features Investment in-kind by Sompo Japan (consolidated subsidiary of NKSJ) of stocks of a subsidiary in Sompo Japan Investment in-kind by Sompo Japan (consolidated subsidiary of NKSJ) of stocks of a subsidiary Asia Holdings Pte. Ltd. (consolidated subsidiary of NKSJ) 31, 2012, Sompo Japan made investment in-kind in Sompo Japan Asia scal year ended March During the fi Insurance Company Limited (consolidated sub- Holdings Pte. Ltd. of all the stocks held by Sompo Japan in Tenet the across planning support and management control strategic sidiary of NKSJ) with the aim of strengthening liates in expanding operations and enhancing internal by bringing subsidiaries and affi and further region control of Sompo Japan Asia Holdings Pte. Ltd. Southeast Asia under the control The transactions are accounted for as transactions under common control in accordance with Accounting with Accounting in accordance common control accounted for as transactions under The transactions are for Business Combinations” (December 26, of Japan Statement No. 21 “Accounting Standard Board Standards for Business of Japan Guidance No. 10 “Guidance on Accounting Standard Board 2008) and Accounting Standards (December 26, 2008). for Business Divestitures” Combinations and Accounting Standard Amount of goodwill, reason for recognizing goodwill, method and period of amortization goodwill, for recognizing Amount of goodwill, reason (5) (a) Amount of goodwill Malaysian ringgits 574 million goodwill (b) Reason for recognizing and liabilities assumed. of assets acquired cost exceeded the net amounts The acquisition (c) Method and period of amortization combination liabilities assumed on the day of business and acquired (6) Amounts of assets assets: Total deposits Cash and liabilities: Total Underwriting funds under common control 2. Transactions (1) Summary of transactions 462 ringgits million Malaysian 995 million Malaysian ringgits (a) The names of subject companies and their types of business 517 million Malaysian ringgits 576 million Malaysian ringgits Co., Ltd. Sompo Japan Himawari Life Insurance Limited NIPPONKOA Life Insurance Company, : Life insurance business (b) Date of business combination : Life insurance business October 1, 2011 (c) Legal form of business combination (d) Name of the entity after business combination Inc. (consolidated subsidiary of NKSJ) NKSJ Himawari Life Insurance, (e) Other matters concerning the transactions (2) Summary of accounting treatment 3. Transactions under common control 3. Transactions (1) Summary of transactions companies and their types of business (a) The names of subject Sompo Japan Insurance Inc. Sompo Japan Asia Holdings Pte. Ltd. combination (b) Date of business and casualty insurance business : Property November 30, 2011 combination (c) Legal form of business and casualty insurance business : Property (d) Other matters concerning the transactions Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 88 16. NKSJ Holdings, Inc. SegmentInformation

1. Summaryofreportable segments Segment information (2) Summaryofaccountingtreatment 2. tesNKSJHoldings,Inc. Others Reportable segments reportable segment Calculation methodsfortheamountofsales,netincome orloss,assetsandotheritemsbyeach and related activities.“Lifeinsurancebusiness”conductsunderwritingoflifeandinvestment “Property andcasualtyinsurancebusiness”conductsunderwritingofproperty andcasualtyinsurance,investment ed in“Others.”Themajorcompanieswhichconstituteeachreportable segmentand“Others”are listedbelow. the reportable segments.NKSJandotheroperationswhichare notcovered bythereportable segmentsare includ- mum component,and“Property and casualtyinsurancebusiness”and“Lifeare determinedas Therefore, NKSJiscomposedofbusinesssegmentswhichconsisttherespective group companiesasamini- dent managementunitandroll outtheiroperationsunderthegroup-wide managementpolicyofNKSJ. The respective group companiesofNKSJdeterminetheircomprehensive strategiesfortheiroperationsasindepen- Income fromtransactions among segmentsisbasedonthepriceoftransactionsthird internal parties. be allocatedtothesegmentandassessitsperformance. and whoseoperatingresults are regularly reviewed bytheboard ofdirectors tomakedecisionsaboutresources to The reportable segmentofNKSJisthecomponent oftheGroup, forwhichdiscrete ﬁ nancial informationisavailable (December 26,2008). “Guidance onAccountingStandard forBusiness CombinationsandAccountingStandard forBusinessDivestitures” for BusinessDivestitures” (December26, 2008) andAccountingStandards Board ofJapanGuidanceNo.10 Combinations” (December26,2008),AccountingStandards Board ofJapanStatementNo.7“AccountingStandard dance withAccountingStandards Board ofJapanStatementNo.21“AccountingStandard forBusiness The transactionswere accountedforatappropriate bookvalueastransactionsundercommoncontrol inaccor- ments istheamountsbasedonnet incomeintheconsolidatedstatementsofincome. for thePreparation oftheConsolidatedFinancialStatements.”Netincomeorlossattributabletoreportable seg- The accountingmethodsofreportable businesssegmentsare thosementionedin“Signiﬁ cant AccountingPolicies ieisrnebsns NKSJHimawari LifeInsurance,Inc. Life insurancebusiness rpryadcsat nuac uiesSompoJapanInsuranceInc. Property andcasualtyinsurancebusiness Yasuda Enterprise DevelopmentCo.,Ltd. SOMPO JAPAN NIPPONKOA ASSETMANAGEMENTCO.,LTD. Healthcare Frontier JapanInc. Sompo JapanDCSecuritiesCo.,Ltd. Sompo JapanDIYLifeInsuranceCo.,Ltd. Yasuda Seguros S.A. Sompo JapanSigortaAnonimSirketi Sompo JapanInsuranceCompanyofAmerica Saison AutomobileandFire InsuranceCompany, Limited Sonpo 24InsuranceCompanyLimited NIPPONKOA InsuranceCo.,Ltd. Major companies Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

89 the (Note 4) fi nancial fi Carrying amount on statements consolidated (Millions of yen) (Note 3) NKSJ Holdings, Inc. Adjustments Total Others (Note 2) Total Life business insurance Reportable segments — — — 3,109 3,109 (3,109) — 509 — 509 2 511 — 511 20,27141,685 — 4,580 20,271 46,266 1,166 419 21,437 46,686 — — 21,437 46,686 casualty business insurance 1,933,283 238,178 2,171,461 5,313 2,176,775 444,913 2,621,689 Property and Property Gains on negative goodwillImpairment losses 149 — 1,118 149 — — 1,118 149 — 1,118 — — 149 1,118 Sales from transactions with transactions with Sales from external customers internalSales from transactions among segments DepreciationAmortization of goodwill and dividend income Interest paidInterest Investment gains (losses) on the 129,528equity method 349 27,559 18,464 157,088 1,872 1,405 2,221 7,202 1 19,870 157,090 0 262 95 (622) 20,132 7,298 2,221 156,467 — 7 — 20,132 2,221 7,306 (4) 7,301 Extraordinary gains:Extraordinary losses:Extraordinary Income tax expensesliates accounted Investment in affi 3,547for under the equity method 13,507 — 1,283 (3,735) 3,547 14,791 (664) — (4,400) 1 17 3,547 14,793 (4,382) (6) (6) — 14,786 3,540 (4,382) Increase in tangible and Increase xed assets intangible fi Information related to the amount of sales, income or loss, assets and other items by each report- of sales, income or loss, assets and to the amount Information related able segment Property and casualty insurance business: Property and casualty insurance business and life insurance to property income related Ordinary written Net premiums Adjustments of sales are as follows. Adjustments of sales are Sales: (Note 1) TotalSegment income (loss)Segment assetsOther items: (7,873) 7,233,827 (4,073) 1,740,175 1,933,283 (11,946) 8,974,003 238,178 2,171,461 (971) 7,971 8,423 8,981,974 (12,918) 2,179,885 441,804 — — 2,621,689 8,981,974 (12,918)

Notes) as follows. nitions of sales are 1. The defi Life insurance business: nancial statements: “Others” and carrying amount on the consolidated fi segments. It includes other operations. not included in reportable 2. “Others” is business segments which are 3. written: written and life insurance premiums business excluding net premiums Elimination of internal transactions among segments: 4. Segment income (loss) is adjusted to net loss in the consolidated statements of income. income Ordinary 444,913 million yen (3,109) million yen written Life insurance premiums Fiscal year ended March 31, 2011 (April 1, 2010 to March 31, 2011) 1, 2010 to March 31, 2011 (April Fiscal year ended March 3. Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 90 NKSJ Holdings, Inc. ieisrnebsns: Lifeinsurancepremiums written (3,977)millionyen 560,718millionyen 6. Extraordinary gainsforproperty andlifeinsurancebusinessinclude11,766millionyenofmergercost. Ordinary income 5. Extraordinary gainsforproperty andcasualtyinsurancebusinessinclude6,298millionyenofgainsonstepacquisitions. 4. Segmentincome(loss)isadjustedtonetlossintheconsolidatedstatementsofincome. transactionsamongsegments: Eliminationofinternal businessexcludingnetpremiums writtenandlifeinsurance premiums written: 3. 2. “Others”isbusinesssegmentswhichare notincludedinreportable segments.Itincludes otheroperations. “Others” andcarryingamountontheconsolidatedfi nancial statements: Lifeinsurance business: 1. Thedefi nitions ofsalesare asfollows. Notes) Fiscal yearendedMarch 31,2012(April1,2011toMarch 31,2012) (1) Property andcasualtyinsurancebusiness 1. Informationbyproducts andservices Fiscal yearendedMarch 31,2011(April1,2010toMarch 31,2011) Related information Note) Salesrepresent amountsofnetpremiums written. emn noe(os (815 1,8)(282 0 9,6)—(92,262) 8,893,378 2,790,555 — 556,740 — 2,233,815 8,893,378 (92,262) 9,843 9,200 2,223,971 600 250,193 8,884,178 1,973,777 (92,862) 1,830,468 7,053,710 (14,687) (78,175) Other items: Segment assets Segment income(loss) Total Sales: (Note1) with external customers with external Sales from transactions Adjustments ofsalesare asfollows. rpryadcsat nuac uies Netpremiums written Ordinary incomerelated toproperty andcasualtyinsurancebusinesslife Property andcasualtyinsurancebusiness: noetxepne 591(2)3,2 83,7 35,174 7,566 — (1) 9,144 35,174 14,965 (2,871) 7,568 (2,871) 48 21,040 3,662 12,015 17,836 — 2 — 35,126 3 0 152,090 (825) 21,040 7,565 3,662 (707) 12,012 35,951 17,835 226 103 intangible fi xed assets 152,797 — — Increase intangibleand 13,337 20,813 for undertheequitymethod 0 7,461 Investment inaffi 4,498 liates accounted 3,662 12,012 Income taxexpenses 1,833 152,796 1,872 Extraordinary losses:(Note6) 18,979 Extraordinary gain(Note5) 29,958 1,789 equity method 122,838 Investment gains(losses)onthe Interest paid Interest anddividendincome Amortization ofgoodwill Depreciation among segments Sales fromtransactions internal customers external Sales from transactionswith maretlse 9 9 9 992 — 992 — 992 — 992 Impairment losses Fire andallied insurance 3,2 76110229208216522351,933,283 242,335 241,625 982,028 180,262 47,611 239,420 Property and ,7,7 5,9 ,2,7 ,6 ,2,3 6,1 2,790,555 560,718 2,229,837 5,865 2,223,971 250,193 1,973,777 insurance business casualty 2052153,0 2 454—34,524 17,684 — — 34,524 17,684 323 1,108 34,200 16,576 2,145 — 32,055 16,576 5 5 4)11—111 — 111 (45) 156 — 156 insurance ,7 ,7 397 — (3,977) 3,977 3,977 — — — Marine Reportable segments insurance business Life insurance Personal accident Total automobile insurance Voluntary (Note 2) Others Compulsory automobile insurance liability Total Adjustments tesTotal Others (Note 3) (Millions ofyen) (Millions ofyen) consolidated statements amount on Carrying fi nancial (Note 4) the Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

91 (Millions of yen) (Millions of yen) (Millions of yen) NKSJ Holdings, Inc. Others Total liability insurance automobile Compulsory Voluntary Voluntary insurance automobile accident Personal insurance Marine insurance 227,141 11,501 11,550 — 250,193 215,929 10,780 11,468 — 238,178 250,769 47,525 182,581 1,002,015 258,353 232,532 1,973,777 insurance Individual insurance Individual annuities insurance Group annuities Group Total Individual insurance Individual annuities insurance Group annuities Group Total Fire and allied Fire xed assets xed xed assets xed Geographic information is omitted because tangible fi xed assets located in Japan constitute more than 90 percent than 90 percent Japan constitute more xed assets located in Geographic information is omitted because tangible fi xed assets in the consolidated balance sheets. of tangible fi Geographic information is omitted because sales (net premiums written and life insurance premiums written) from written) from written and life insurance premiums Geographic information is omitted because sales (net premiums of sales (net premiums transactions with external than 90 percent customers attributed to Japan constitute more written) in the consolidated statements of income. written and life insurance premiums Geographic information is omitted because sales (net premiums written and life insurance premiums written) from written) from insurance premiums written and life is omitted because sales (net premiums Geographic information of sales (net premiums than 90 percent transactions with external constitute more customers attributed to Japan statements of income. written) in the consolidated written and life insurance premiums Geographic information is omitted because tangible fi xed assets located in Japan constitute more than 90 percent than 90 percent xed assets located in Japan constitute more fi Geographic information is omitted because tangible xed assets in the consolidated balance sheets. of tangible fi Sales from transactions transactions Sales from with external customers transactions Sales from with external customers Sales from transactions Sales from with external customers 3. Information by major customers None. (2) Tangible fi (2) Tangible

Note) Sales represent amounts of life insurance premiums written. amounts of life insurance premiums Note) Sales represent 2. Information by geographic area (1) Sales Note) Sales represent amounts of net premiums written. amounts of net premiums Note) Sales represent (2) Life insurance business (2) Life insurance business written. amounts of life insurance premiums Note) Sales represent area 2. Information by geographic (1) Sales

(2) Tangible fi (2) Tangible 3. Information by major customers None. 31, 2012) 31, 2012 (April 1, 2011 to March Fiscal year ended March and services 1. Information by products and casualty insurance business (1) Property Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 92 NKSJ Holdings, Inc. Fiscal yearendedMarch 31,2012(April1,2011toMarch 31,2012) Fiscal yearendedMarch 31,2011(April1,2010toMarch 31,2011) Information related toamortizationofgoodwillandbalancebyreportable segments Fiscal yearendedMarch 31,2012(April1,2011toMarch 31,2012) Fiscal yearendedMarch 31,2011(April1,2010toMarch 31,2011) Information related toimpairmentlosses onfi Fiscal yearendedMarch 31,2011(April1,2010toMarch 31,2011) Information related togainsonnegativegoodwillbyreportable segments March 31,2012 Balance asof 992 March 31,2012 the fi scal yearended Amortization for — — 1,118 March 31,2011 Balance asof 992 March 31,2011 — the fi scal yearended Amortization for — — 992 1,118 Impairment losses — 1,118 Impairment losses goodwill Gains onnegative Property and Property and Property and Property and Property and insurance insurance insurance insurance insurance business business business business business 0201,8 770——47,740 — — 47,740 41,956 17,480 — 30,260 — 41,956 19,352 22,604 casualty casualty casualty casualty casualty ,8 ,7 ,6 3,662 — — 3,662 1,872 1,789 4 4 149 — — 149 — 149 4 ,7 ,2 2,221 — 0 2,221 1,872 349 Reportable segments Reportable segments Reportable segments Reportable segments Reportable segments Life insurance Life insurance Life insurance Life insurance Life insurance business business business business business xed assetsbyreportable segments Total Total Total Total Total Others Others Others Others Others amounts and amounts and amounts and amounts and amounts and Unallocated Unallocated Unallocated Unallocated Unallocated eliminations eliminations eliminations eliminations eliminations (Millions ofyen) (Millions ofyen) (Millions ofyen) (Millions ofyen) (Millions ofyen) Total Total Total Total Total Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

93 (Millions of yen) (Millions of yen) on the assumption that the NKSJ Holdings, Inc. ough dilutive shares exist. ough dilutive shares Number of dilutive shares: Number of dilutive shares: 599,500 shares (April 1, 2011 to March 31, 2012) (April 1, 2011 to March 31, 2012) (April 1, 2011 to March Fiscal year ended March 31, 2012 Fiscal year ended March 31, 2012 Fiscal year ended March Stock acquisition rights: 14 types As of March 31, 2011As of March 31, 2012 As of March 415,106 thousand shares 414,825 thousand shares Number of dilutive shares: Number of dilutive shares: 745,250 shares (April 1, 2010 to March 31, 2011) (April 1, 2010 to March (April 1, 2010 to March 31, 2011) (April 1, 2010 to March Fiscal year ended March 31, 2011 Fiscal year ended March Fiscal year ended March 31, 2011 Fiscal year ended March Stock acquisition rights: 13 types Sompo Japan, which was defi ned as the acquirer, acquired NIPPONKOA through share exchange, and NKSJ was share NIPPONKOA through acquired as the acquirer, ned defi Sompo Japan, which was company as of April 1, 2010. established as a joint holding NKSJ carried out a reverse split of stocks on October 1, 2011. Net assets per share and net loss per share are calculated based are and net loss per share split of stocks on October 1, 2011. Net assets per share NKSJ carried out a reverse 31, 2011. scal year ended March split of stocks was executed at the beginning of the fi reverse Non-controlling interests Non-controlling net assetsTotal total net assets:Amount to be deducted from 2,793 Stock acquisition rights 4,624 net assets attributable to common stocksTotal Number of common stocks used for calculation of net assets per share 5,142 1,074,303 1,079,446 2,349 7,034 993,543 1,000,577 2,409 Net lossNet Net loss not attributable to common stockholdersNet loss attributable to common stocks stocks outstanding number of common Average not included in the calculation which are Outline of dilutive shares because they do not have dilutive of diluted net income per share effect (12,918) 415,154 thousand shares (92,262) 415,026 thousand shares — (12,918) — (92,262) Net assets per shareNet loss per share 2,588.02 yen (31.11) yen 2,395.08 yen (222.30) yen 4. 2. Calculation of net loss per share is based on the following fi gures. is based on the following fi 2. Calculation of net loss per share gures. is based on the following fi 3. Calculation of net assets per share There is no material related-party transaction to be represented. transaction to be is no material related-party There Notes) alth not shown due to net loss per share, 31, 2011 and 2012 are scal year ended March for the fi 1. Diluted net income per share Outline of events resulting in recognition of gains on negative goodwill of gains on in recognition Outline of events resulting and casualty insurance business: Property 31, 2012) 1, 2011 to March 31, 2012 (April Fiscal year ended March None. Related-Party Transactions Information Per Share 18. 17. Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 94 19. NKSJ Holdings, Inc. Signifi cant SubsequentEvents Net loss per share (7.77) yen (7.77) None. yen 647.00 Netlosspershare Netassetspershare revisions are notappliedare asfollows. Pro formacalculationofnetassetspershare andnetlosspershare forthefi scal yearended March 31,2011ifthese carried outonOctober1,2011hadbeenexecutedatthebeginningoffi scal yearendedMarch 31,2011. According totheapplication,netassetsper share andnetlosspershare are calculatedasifthereverse splitofstocks 2010). Board ofJapanPracticalIssuesTask ForcePerShare” No.9“PracticalSolutiononAccountingforEarnings (June30, Guidance No.4“GuidanceonAccountingStandardPerShare” forEarnings (June30,2010)andAccountingStandards Statement No.2“AccountingStandardPerShare” forEarnings (June30,2010),AccountingStandards Board ofJapan Effective from thefi scal yearendedMarch 31,2012,NKSJhasappliedAccountingStandards Board ofJapan (Changes inaccountingpolicies) Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

95 NKSJ Holdings, Inc. Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 96 Balance Sheets Sompo JapanInsuranceInc.(Non-consolidated) (Unaudited) Balance SheetsandStatementsofIncomePrincipalConsolidatedSubsidiaries consrcial 23,571 1 9,125 381,845 1,519 96 67,711 8,701 23,668 98,000 82,786 103,264 5,357 19,361 826 211,597 Accounts receivable Proxy Foreign reinsurance accountsreceivable service receivable Reinsurance accounts receivable Coinsurance Foreign agencyaccountsreceivable accounts receivable Agency accounts receivable Premiums receivable Other assets: Intangiblefi xed assets Othertangiblefi xed assets Construction in progress Leased assets Buildings Land Tangible fi xed assets: oiylas9,575 446,041 Ordinary loans Policy loans Las 455,617 37,923 Loans: Other securities oeg euiis788,949 1,163,091 Foreign securities Domestic stocks Ttla st 4,786,371 (3,477) (8,019) — Total assets Allowanceforpossibleinvestmentlosses Allowanceforpossiblecredit losses Customers’liabilitiesforacceptancesandguarantees 512,744 19,068 Corporate bonds Municipal bonds upnepyet 54,878 13,011 7,748 68,895 Suspense payments Earthquake insurance deposits Advance deposits Accrued income 67,800 89,489 89,494 33,490 Receivablesunderresale agreements Call loans Deposits Cash Cashanddeposits: Assets: te ses962 168,619 417 3,632 Deferred taxassets Other assets Derivative Depositspaidforfuture transactions assets 3,359,247 237 837,468 29,823 Government bonds Securities: Money trusts Monetaryreceivables bought NKSJ Holdings, Inc. As ofMarch 31,2011 mutAmount Amount 4 As ofMarch 31,2012 4,600,592 3,104,476 458,486 102,893 208,055 413,262 422,163 775,527 983,826 486,667 149,862 814,062 99,947 29,992 80,362 17,748 23,841 98,057 18,819 78,688 33,759 29,370 10,633 77,972 12,554 60,486 66,300 85,161 85,164 27,215 (8,202) (3,152) 2,669 4,985 8,900 5,342 7,303 2,950 943 965 488 280 14 86 3 Increase (Decrease) (179,265) (185,778) (254,771) (32,779) (33,453) (13,422) (26,077) (18,757) (23,405) (63,552) (Millions ofyen) 76,641 76,375 20,866 12,651 29,370 23,094 26,996 (3,541) (4,098) (4,163) (8,435) (1,500) (4,328) (4,330) (2,608) 1,842 9,047 (575) (370) (372) (541) (674) (183) (444) (457) (681) 173 325 12 57 71 43 (9) (1) 3 Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

97 (1) — — — — — 49 35 82 (11) 335 101 426 (189) (385) (476) (325) (124) 7,458 1,526 8,627 3,761 (2,869) (2,869) 22,145 22,145 10,375 29,370 69,318 89,009 (Millions of yen) (68,349) (19,526) (117,429) (185,778) (150,000) (139,575) (185,009) (139,575) (139,575) (165,483) Increase (Decrease) Increase NKSJ Holdings, Inc. 15 109 101 462 1,306 5,277 1,579 3,435 4,976 3,146 4,499 83,300 36,047 70,000 24,229 24,229 45,770 12,489 79,511 14,316 14,436 14,436 29,370 55,684 54,994 13,424 317,953 578,607 317,953 260,654 620,037 166,424 120,654 136,160 128,000 296,255 4,600,592 3,459,994 4,021,985 2,839,957 As of March 31, 2012 As of March 295,807 Amount Amount As of March 31, 2011 As of March tax net of securities available for sale, adjustments valuation and translation Total net assets Total liabilities and net assetsTotal 295,807 4,786,371 696,037 Retained earnings carried forwardcarried earnings Retained equity shareholders’ Total and translation adjustments: Valuation gains and losses on Unrealized 25,671 400,229 Liabilities: funds: Underwriting 3,645,004 and claims Reserve for outstanding losses 639,564 Total liabilities Total Net assets: equity: Shareholders’ stock Common surplus: Capital reserves Capital earnings: Retained reserve Legal earnings: retained depreciation Other advanced for Reserve reserve General 4,090,334 1,257 70,000 24,229 24,229 260,229 305,999 45,770 233,300 Securities borrowed Securities liabilities Derivative obligations Lease obligations retirement Asset ts benefi Reserve for retirement Reserve for bonus payments to directors Reserve for bonus payments laws: Reserves under the special uctuation price fl Reserve for Acceptances and guarantees 299 1,543 5,030 77,984 5,662 — 14,793 17,305 17,305 — Income taxes payabletaxes Income received Deposits income Unearned payable Accounts receipts Suspense 3,353 5,301 66,842 35 55,349 Borrowings 3,157 Underwriting reserves Underwriting bonds Corporate liabilities: Other payableaccounts Coinsurance payableaccounts Reinsurance payable service accounts payable reinsurance Foreign Proxy 3,005,440 4,623 46,366 9,663 128,000 207,245 16 Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 98 Statements ofIncome Sompo JapanInsuranceInc.(Non-consolidated) neetaddvdn noe86,463 Interest anddividendincome netetgiso oe rss0 69,131 62 4,660 Investmentgainsontradingsecurities Investmentgainsonmoneytrusts Investment income: Other underwriting income an nd rvtvs3,231 0 18,604 Gains Gainsonredemption ofsecurities 104,344 on derivatives Gainsonsalesofsecurities Reversalofunderwritingreserves Ivsmn xess 28,672 — 365 Investmentlossesontradingsecurities Investmentlossesonmoneytrusts Investment expenses: 168 Other investment income te newiigepne 6,869 5,905 Other underwriting expenses Ordinary expenses: Otherordinary income 118,184 Depositsofpremiums bypolicyholders oeg xhnelse 155 1,359,579 Foreign exchange losses Underwriting expenses: 1,256,639 Net premiums written iied op lchles89 817,961 Dividends to policyholders Net claims paid 1,562,178 Underwriting income: Ordinary income: auiyrfnst oiyodr 227,802 93,020 213,680 Maturityrefunds topolicyholders Netcommissionsandbrokerage fees Loss adjustment expenses osso ae fscrte 4,926 Lossesonsalesofsecurities maretlse nscrte 6,767 Impairmentlossesonsecurities oeg xhnelse 10,228 2,840 Foreign Lossesonredemption ofsecurities exchange losses te riayepne 858 7,161 8,312 3,544 Ordinary profi Other ordinary expenses 220,108 Interest paid Otherordinary expenses: Operating,generalandadministrativeexpenses Other investment expenses osso a et8 Losses onbaddebt NKSJ Holdings, Inc. depositsofpremiums, etc. Transfer ofinterest anddividendincomeon and claims Reversal ofreserve foroutstandinglosses premiums, etc. Interest anddividendincomeondepositsof investment losses Provision for allowanceforpossible t Fiscal yearended March 31,2011) March 31,2011 (April 1,2010to 1,616,673 1,637,215 mutAmount Amount (39,399) 38,950 39,399 20,541 284 Fiscal yearended March 31,2012) (April 1,2011to March 31,2012 1,712,259 1,281,155 1,435,869 1,627,195 1,716,224 165,483 122,087 180,999 219,559 939,541 215,148 (37,176) 78,375 83,391 41,369 52,693 19,526 37,176 92,530 19,478 18,141 12,528 1,767 2,876 5,637 7,421 8,547 1,548 3,964 600 181 326 928 936 183 39 67 35 — — 0 5 121,580 14.9 Dces)Rateofchange (Decrease) 1,2)(49.9) (19,423) 4,0)(20.5) (46,802) 1,7)(80.7) (16,577) 14,260 20.6 61,138 58.6 22,765 122.4 24,020 83.8 24,515 2.0 95,585 5.9 65,017 4.2 79,008 4.8% 76,290 5.6 14,552 295.4 11,374 168.1 Increase 807 (9.4) (8,087) 282 (62.1) (2,892) 260 (81.4) (2,630) 393 (58.1) (3,993) (5.6) (2,223) 191 (67.3) (1,911) 490 (2.3) (56.3) (4,960) (1,995) 3,903 3.3 2,223 — 5,879 2.8 2,299 22.5 35 (100.0) (365) 28 (4.5) (268) 49 (0.5) (489) 11 (35.6) (101) 170 110.2 235 2.8 260 3.6 6)(100.0) (62) 5)(60.8) (54) 38 4,142.0 67 — 12 7.5 78 9.1 2 (31.8) (2) 0 39.4 (Millions ofyen) Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

99 (Millions of yen) NKSJ Holdings, Inc. 81 2.5% 10 0.0 8.1 (7.4) (0.6) 301 129.8 100 38.6 178 39.3 (158) (34.2) (489) (0.5) 2,869 — 2,869 — 5,879 2.8 (3,088) (100.0) (7,784) (92.1) (5,843)(5,843) (100.0) (1,882) (100.0) (8,710) (100.0) (56.5) (5,868) (2.8) Increase Increase 40,754 1,438.1 40,932 1,244.9 24,515 2.0 (96,586)(15,278) — — (49,643) (409.4) (Decrease) Rate of change 121,580 14.9 — — — — 533 359 665 305 632 33.0 80.6 (13.6) 3,402 2,869 2,869 6,701 43,587 44,220 92,530 (24,994) (37,518) 423,376 219,559 203,816 939,541 (174,293) 1,281,155 March 31, 2012 31, March (April 1, 2011 to March 31, 2012) 31, March Fiscal year ended 454 3,320 8,449 2,833 3,288 15,412 12,124 209,684 Amount Amount (April 1, 2010 to March 31, 2011 March March 31, 2011) March Fiscal year ended Operating, general and administrative to underwriting expenses related Extraordinary gains: Extraordinary xed assets Gains on disposal of fi 231 under the special laws: Reversal of reserves — uctuation for price fl Reversal of reserve — Other extraordinary gains extraordinary Other losses: Extraordinary losses Impairment 3,088 259 xed assets of fi Losses on disposal 464 laws: under the special for reserves Provision losses extraordinary Other uctuation price fl for reserve for Provision income taxes Income before taxes Income 5,843 5,843 1,882 Net expense ratio expense Net ratio result Underwriting (%) (%) (6.2) 33.7 income taxes Deferred Underwriting profi t (loss)t profi Underwriting Ratios: ratioloss Net (9,716) (%) 72.5 income taxes Total result Underwriting (77,706) Net income (loss) Underwriting result: written premiums Net expenses: Operating (+) fees Net commissions and brokerage 1,256,639 (–) 213,680 423,365 Net claims paidclaims Net expensesadjustment Loss (–) (–) 93,020 817,961 Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 100 Balance Sheets NIPPONKOA InsuranceCo.,Ltd.(Non-consolidated) Ohrast:169,264 266 526 20,841 66,692 54,174 466 5,362 1,201 200,717 127,897 5,654 195,062 18,664 Agency accounts receivable Premiums receivable Other assets: Intangiblefi xed assets Othertangiblefi xed assets Construction in progress Leased assets Buildings Land Tangible fi xed assets: Ordinary loans Policy loans Loans: Other securities dac eois5,731 5,877 13,178 9,005 35,485 3,895 2,076 Advance deposits Accrued income Accounts Foreign reinsurance accountsreceivable receivable Reinsurance accounts receivable Coinsurance Foreign agencyaccountsreceivable accounts receivable oeg euiis344,291 Foreign securities oetcsok 601,533 Domestic stocks upnepyet 17,033 48,813 Suspense payments Earthquake insurance deposits 311,568 45,552 1,697,112 46,313 375,501 10,000 124,609 2,449 124,674 Corporate bonds Municipal bonds Government bonds Securities: Money trusts Monetaryreceivables bought Call loans Deposits Cash Cashanddeposits: Assets: Ttla st 2,459,190 82,262 1,507 5,553 — (2,028) — Total assets Allowanceforpossibleinvestmentlosses Allowanceforpossiblecredit losses Deferred taxassets Other assets Derivative Depositspaidforfuture transactions assets NKSJ Holdings, Inc. As ofMarch 31,2011 mutAmount Amount 65 As ofMarch 31,2012 1,604,942 2,337,631 170,892 125,359 191,318 196,512 331,805 541,221 299,220 379,739 119,646 119,708 21,326 51,803 66,097 14,435 10,949 32,062 43,187 13,319 19,579 38,519 35,455 10,000 74,489 (1,987) 4,709 2,324 5,193 5,634 4,256 3,233 4,700 1,737 8,586 2,800 476 526 424 779 61 (3) Increase (Decrease) (121,558) (12,486) (60,312) (12,347) (44,113) (92,170) (10,858) (Millions ofyen) 23,057 (2,538) (3,744) (4,205) (2,370) (4,228) (1,620) (2,228) (4,962) (4,965) (7,033) (7,772) 1,627 1,122 1,157 7,702 9,424 4,237 2,545 3,033 2,800 (653) (460) (595) (712) (728) 210 485 (41) (96) 40 — (0) (3) (3) Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

101 — — 18 26 (42) (73) 812 165 216 126 (223) (142) 2,254 2,677 2,677 2,302 3,061 1,001 3,897 1,001 2,117 (1,511) 13,433 40,110 12,824 47,449 21,021 23,138 (Millions of yen) (85,599) (25,000) (25,000) (34,097) (36,400) (50,000) (59,097) (35,958) (138,812) (151,636) (121,558) Increase (Decrease) Increase NKSJ Holdings, Inc. 0 — 18 447 308 825 6,228 3,299 7,799 3,846 1,232 1,658 1,597 1,340 2,776 5,660 25,472 11,289 11,289 91,249 21,702 21,702 57,952 44,196 13,755 10,456 36,432 22,548 40,110 170,903 301,967 120,925 153,016 158,677 329,580 2,008,051 1,844,117 1,542,150 2,337,631 As of March 31, 2012 As of March 131,995 Amount Amount As of March 31, 2011 As of March tax net of securities available for sale, ts beneﬁ Reserve for retirement Reserve for bonus payments to directors Reserve for bonus payments laws: Reserves under the special liabilitiesuctuation price ﬂ Reserve for Total Net assets: equity: Shareholders’ stock Common surplus: Capital reserves Capital earnings: Retained reserve Legal earnings: retained depreciation Other advanced for 23,217 Reserve reserve — forward General carried earnings 5,415 Retained 8,611 8,611 2,093,650 3,133 91,249 (2,977) 46,702 46,702 50,156 92,050 41,894 50,000 Suspense receipts Suspense liabilities Derivative obligations Lease obligations retirement Asset liabilities Other 6,798 282 5,358 489 0 Borrowingspayabletaxes Income received Deposits income Unearned payable Accounts 1,441 1,740 1,455 898 33,370 equity shareholders’ Total 230,001 Liabilities: funds: Underwriting 1,982,929 reservesand claims Reserve for outstanding losses Underwriting liabilities: Other payableaccounts Coinsurance payableaccounts Reinsurance accounts payable reinsurance Foreign securities lending transactions Payables under 289,142 1,693,786 1,213 18,650 — 1,775 73,476 and translation adjustments: Valuation on gains and losses Unrealized gains and losses on hedges Deferred adjustments valuation and translation Total net assets Total 135,538 3,543 365,539 Total liabilities and net assetsTotal 2,459,190 Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 102 Statements ofIncome NIPPONKOA InsuranceCo.,Ltd.(Non-consolidated) Ohrodnr xess879 3 32 Ordinary loss Other ordinary 1,037 expenses Losses on bad 474 2,366 debt Interest paid 1,085 3,641 Other 6,590 ordinary expenses: 14,762 603 Other investment expenses Foreign Lossesonredemption ofsecurities exchange 977 224 losses Impairmentlossesonsecurities Lossesonsalesofsecurities Investmentlossesonmoneytrusts 27 Investment expenses: 121,532 Other 397,444 underwriting expenses Foreign exchange 34,369 losses 680,302 2,362 104,455 Dividends Maturityrefunds topolicyholders to policyholders Netcommissionsandbrokerage fees Loss 68 adjustment 1,217 expenses Net claims paid Underwriting 2 expenses: Ordinary expenses: 19,181 Otherordinary income 43,237 671 42,722 Other investment 54 income Gains Gainsonredemption ofsecurities on derivatives Gainsonsalesofsecurities 97,631 Investmentgainsonmoneytrusts Interest anddividendincome 773,845 620,615 Investment income: Other Reversalofunderwritingreserves underwriting income Depositsofpremiums bypolicyholders Net premiums written Underwriting income: Ordinary income: expenses Operating, generalandadministrative NKSJ Holdings, Inc. lossesandclaims Provision forreserve foroutstanding incomeondepositsofpremiums, etc. Transfer ofinterest anddividend depositsofpremiums, etc. Interest anddividendincomeon possibleinvestmentlosses Provision for allowancefor credit losses Provision for allowanceforpossible Fiscal yearended March 31,2011) March 31,2011 (April 1,2010to 123,663 819,764 819,445 (20,625) mutAmount Amount 21,270 20,625 34,918 (319) 121 — Fiscal yearended March 31,2012) (April 1,2011to March 31,2012 118,378 109,800 107,355 493,011 764,546 903,146 151,636 630,605 842,967 895,408 (18,698) 13,713 19,859 12,824 41,125 27,939 41,211 50,862 18,698 42,013 (7,737) 2,344 1,185 1,773 1,578 318 361 366 475 228 183 220 160 27 17 21 12 3 2 9 7 Dces)Rateofchange (Decrease) 1,3)(9.7) (11,732) 95,566 24.0 84,244 12.4 83,381 10.2 54,005 55.3 69,121 8.9 75,962 9.3% Increase 524 (4.3) (5,284) (51.3) (1,867) (39.7) (8,446) (3.5) (1,510) (9.3) (1,926) 748 — (7,418) 7,122 108.1 5,097 34.5 6,756 19.7 1,926 — 8,758 45.7 7,624 17.6 7,094 20.3 2,899 2.8 9,990 1.6 51 (63.8) (561) (65.1) (675) (22.7) (107) (21.2) (127) (81.2) (794) (81.9) (997) 11 (92.4) (111) (33.2) (783) (96.8) (649) 100 9.2 157 7,856.1 6)(89.2) (61) 2)(0.9) (22) (76.8) (41) 0 (22.3) (0) 5 (15.6) (5) (35.6) (9) 4 2.0 3 — (Millions ofyen) Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

103 (Millions of yen) NKSJ Holdings, Inc. (41) (13.2) (0.8) 180 9.4% 402 71.2 (384)(226)(291) (43.9) (26.4) (291) (9.8) (499) (9.8) (100.0) (221) (16.2) 15.1 (14.4) 9,990 1.6 6,756 19.7 2,899 2.8 (1,401) (26.9) (5,836) — (1,244) (0.6) (4,143) (3.5) Increase Increase 10,352 408.5 10,311 362.3 95,566 24.0 (16,147) — (91,088)(16,126) — — (Decrease) Rate of change — 491 632 270 967 84.7 35.0 (19.7) 2,677 2,677 2,112 1,145 3,802 (9,427) 12,886 13,157 41,125 (22,584) (41,118) 630,605 493,011 220,691 107,355 113,336 (124,222) March 31, 2012 March (April 1, 2011 to March 31, 2012) March Fiscal year ended 311 2,968 2,968 2,534 2,845 1,931 5,203 (3,591) (6,437) Amount Amount 104,455 117,480 (April 1, 2010 to March 31, 2011 March March 31, 2011) March Fiscal year ended Provision for reserve for for reserve Provision uctuation fl price Net commissions and fees brokerage Operating, general and expenses administrative to underwriting related Provision for reserves under for reserves Provision the special laws: lossesxed assets of fi Losses on disposal Impairment losses extraordinary 876 Other income taxes Loss before taxes Income income taxes Deferred 859 income taxes Total loss Net 499 Underwriting result: written premiums Net paidclaims Net expensesadjustment Loss expenses: (+) Operating (–) 620,615 (–) 34,369 (–)(loss)result 397,444 t Underwriting profi 221,935 Underwriting Ratios: ratioloss Net ratio expense Net ratio result Underwriting (24,991) (%) (33,134) (%) (%) (5.3) 35.8 69.6 Extraordinary gains: Extraordinary gains extraordinary xed assets Gains on disposal of fi Other losses: Extraordinary 1,366 565 Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 104 Balance Sheets Sonpo 24InsuranceCompanyLimited(Non-consolidated) upnepyet 16 5 166 806 33 617 104 137 500 16,451 1,664 15,951 1,664 Suspense payments Advance deposits Accrued income Accounts receivable Other Othertangiblefi xed assets assets: Buildings Tangible fi xed assets: Other securities Government bonds Securities: Deposits Cashanddeposits: Assets: eanderig are owr (30,132) Retained earnings carried forward Udrrtn ud:9,497 19,059 Underwriting funds: Liabilities: Total assets oa hrhles qiy7,867 Total shareholders’ equity Ttll aiiis11,263 — 23 80 23 584 922 103 9 1,558 34 7 6,690 Total liabilities Deferred taxliabilities Reserveforpricefl uctuation Reservesunderthespeciallaws: 2,807 Reserveforbonuspayments Reserveforretirement benefi ts Suspense receipts Accounts payable Deposits received Income taxes payable Reinsurance accounts payable Other liabilities: Underwriting Reserveforoutstandinglossesandclaims reserves oa e ses7,795 (72) Total netassets Total valuationandtranslationadjustments Unrealized gainsandlosseson Valuation andtranslationadjustments: eanderig:(30,132) 19,000 19,000 19,000 Retained earnings: Capital reserves Capital surplus: Common stock Shareholders’ equity: Net assets: oa iblte n e ses19,059 Total liabilitiesandnetassets Ohrrtie anns (30,132) Other retained earnings: NKSJ Holdings, Inc. securities availableforsale, net of a (72) tax As ofMarch 31,2011 mutAmount Amount As ofMarch 31,2012 (31,475) (31,475) (31,475) 16,866 16,966 11,063 19,743 13,166 19,000 19,000 19,000 19,743 1,752 1,752 6,524 1,098 1,829 7,312 3,751 6,577 166 701 890 102 133 100 131 677 16 30 23 26 26 91 38 52 52 6 8 6 Increase (Decrease) (1,343) (1,343) (1,343) (1,218) (1,343) (Millions ofyen) 1,565 1,902 (400) 915 515 684 176 271 621 943 124 124 684 (10) 10 88 88 84 84 23 11 27 92 — — — (2) (1) (3) (0) (0) 0 3 3 3 Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

105 (Millions of yen) 0 2.2 0 9.4 3 — 3 — 0 — 2 64.2 2 214.6 0 2.2 (5) (96.5) (5) (96.5) (0) (10.4) NKSJ Holdings, Inc. — —— —— 89 12.8 89 12.8 10 1,823.0 19 24.1 1.6 (1.7) 255 9.9 723 11.0 225 35.4 345 10.5 723 11.0 225 35.4 469 99.2 136 28.1 254 9.8 926 8.3% (164)(779) (64.9) — (974)(974) — — (234) (85.5) (971) — (213) (61.9) 1,130 10.5 1,645 18.5 1,898 16.5 1,130 10.5 1,129 10.5 Increase Increase (Decrease) Rate of change 3 3 0 3 3 0 0 8 7 4 3 3 (8) 89 39 11 0.7 863 789 863 789 943 621 131 100 68.7 30.5 2,849 7,328 3,638 7,328 2,852 (1,476) (1,339) (1,343) (1,331) 11,919 10,546 13,402 11,919 12,070 11,927 March 31, 2012 31, March (April 1, 2011 to March 31, 2012) 31, March Fiscal year ended 3 3 9 4 (9) 473 (364) (368) (360) 2,593 2,597 11,504 11,143 Amount Amount (April 1, 2010 to March 31, 2011 March March 31, 2011) March Fiscal year ended administrative expenses Operating, general and administrative to underwriting expenses related Provision for reserve for outstanding losses for reserve Provision claims and Interest and dividend income on deposits and dividend income on deposits Interest etc. of premiums, and dividend income on of interest Transfer etc. deposits of premiums, Operating, general and expenses:Other ordinary 5 expenses Other ordinary 5

(loss)resultt Underwriting proﬁ Underwriting Ratios: ratioloss Net ratio expense Net ratio result Underwriting (%) (696) (%) (%) 253 2.4 30.5 67.1 Net claims paidclaims Net expenses adjustment Loss expenses: Operating fees Net commissions and brokerage (–) (–) (–) 637 699 6,604 3,293 income taxes Loss before taxes Income income taxes Total loss Net Underwriting result: written premiums Net (+) 10,788

Net claims paidclaims Net expensesadjustment Loss reserves fees Net commissions and brokerage underwriting for Provision expensesunderwriting Other 637 699 485 6,604 0 Underwriting expenses: Underwriting expenses: Investment 8,901 Losses on sales of securities — — Ordinary expenses: Ordinary Gains on sales of securitiesincome ordinary Other 273 0 loss Ordinary losses: Extraordinary xed assets Losses on disposal of fi under the special laws: for reserves Provision uctuation for price fl for reserve Provision 3 1 3 Net premiums written premiums Net income:income Investment dividend and Interest 10,788 80 345 Ordinary income: Ordinary Underwriting income: Underwriting 10,797 Sonpo 24 Insurance Company Limited (Non-consolidated) Limited (Non-consolidated) Company 24 Insurance Sonpo of Income Statements Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 106 Balance Sheets Saison AutomobileandFire InsuranceCompany, Limited(Non-consolidated) ahaddpst:4,028 Cashanddeposits: Assets: Ttla st 33,049 397 (0) 407 76 196 283 2,239 480 362 13 22 57 1,878 21 Total assets Allowancefor possible credit losses 17 1,958 Suspense 365 2 payments Earthquake insurance deposits Advance 16 deposits 385 Accrued income Accounts receivable Reinsurance accounts receivable Coinsurance accounts receivable Agency accounts receivable Premiums receivable Other Otherintangiblefi xed assets assets: Leased assets Software Intangiblefi xed assets: Othertangiblefi xed assets Leased assets Buildings Tangible fi xed assets: Policy loans te euiis2,205 1,345 166 9,390 23,104 1,453 1,316 8,543 4,022 Loans: Other securities Foreign securities Domestic stocks Corporate bonds Municipal bonds Government bonds Securities: Money trusts Deposits Cash NKSJ Holdings, Inc. As ofMarch 31,2011 mutAmount Amount 16 5 As ofMarch 31,2012 28,598 19,469 2,548 2,507 2,346 2,411 1,204 8,652 1,781 6,871 1,324 2,539 480 410 399 410 717 305 322 805 154 56 24 19 45 15 15 15 — (0) 8 2 8 Increase (Decrease) (4,450) (1,480) (3,634) (1,000) (1,672) (1,483) (Millions ofyen) (196) (540) (737) 115 237 267 467 452 328 (59) (63) (13) (19) (11) (12) 82 47 11 (0) (0) (2) (2) (0) (0) 2 3 7 Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

107 3 1 3 9 8 9 (0) (2) (2) — — — — 68 68 16 31 (92) (68) (42) 230 138 (Millions of yen) 1,760 1,530 1,761 (6,210) (4,450) (6,279) (6,279) (6,279) (6,279) Increase (Decrease) Increase NKSJ Holdings, Inc. 5 5 0 — 61 18 95 26 64 51 299 299 533 937 225 361 176 4,228 8,610 6,848 6,848 3,928 4,972 2,002 28,598 24,370 16,840 21,813 (11,529) (11,529) (11,529) As of March 31, 2012 As of March Amount Amount As of March 31, 2011 As of March tax 231 net of securities available for sale, Total liabilities and net assetsTotal 33,049 adjustments valuation and translation Total net assets Total 231 10,439 Proxy service payableservice Proxy 0 and translation adjustments: Valuation on gains and losses Unrealized Reinsurance accounts payableaccounts Reinsurance payabletaxes Income received Deposits payable Accounts Reserve for bonus payments laws: Reserves under the special 626 uctuation price fl Reserve for tax liabilities Deferred liabilities Total Net assets: equity: Shareholders’ 60 stock Common surplus: Capital reserves 14 Capital surplus 799 capital Other earnings: Retained earnings: retained forward Other carried earnings Retained equity 217 shareholders’ 7 Total 7 85 22,610 (5,250) 8,610 6,848 6,848 (5,250) 0 (5,250) 10,207 reservesand claims Reserve for outstanding losses Underwriting liabilities: Other payableaccounts Coinsurance receipts Suspense 4,741 obligations Lease ts benefi Reserve for retirement ts to directors benefi Reserve for retirement 15,310 23 1,986 42 218 32 429 Liabilities: funds: Underwriting 20,051 Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 108 Statements ofIncome Saison AutomobileandFire InsuranceCompany, Limited(Non-consolidated) te netetepne 33 Other investment expenses 15,173 14,294 620 Depositsofpremiums bypolicyholders Net premiums written Underwriting income: Ordinary income: neetpi 9 2 12 — 54 151 64 Ordinary loss 5,629 Other Provision forallowancepossiblecredit losses ordinary 5 — expenses Interest paid Otherordinary expenses: 896 Operating,general andadministrativeexpenses 0 Lossesonredemption ofsecurities Lossesonsalesofsecurities 1,071 7,571 Investment 964 expenses: Other 1,727 212 12,238 underwriting expenses Foreign Provision forunderwritingreserves exchange losses Dividends Maturityrefunds topolicyholders 0 to 106 policyholders Netcommissionsandbrokerage fees Loss 339 adjustment 0 expenses Net 2 283 claims paid Underwriting expenses: 0 Ordinary expenses: Otherordinary income Other Gainsonsalesofsecurities investment income Investmentgainsontradingsecurities Investmentgainsonmoneytrusts Interest anddividendincome Investment income: Foreign exchange gains NKSJ Holdings, Inc. and claims Provision forreserve foroutstandinglosses depositsofpremiums, etc. Transfer ofinterest anddividendincomeon and claims Reversal ofreserve foroutstandinglosses premiums, etc. Interest anddividendincomeondepositsof Fiscal yearended March 31,2011) March 31,2011 (April 1,2010to 15,724 18,031 mutAmount Amount (2,307) 204 (53) 53 — Fiscal yearended March 31,2012) (April 1,2011to March 31,2012 14,479 15,056 15,608 13,191 21,653 (6,044) 8,356 1,530 1,511 1,076 8,102 527 230 734 319 249 232 (49) 12 14 26 69 78 16 49 — — 8 0 0 5 0 0 7 0 8 Dces)Rateofchange (Decrease) Increase 377 — (3,737) 2,726 48.4 3,621 20.1 16 (0.8) (0.7)% (116) (116) 37 (31.5) (12.5) (337) (216) (31.4) (106) (100.0) (204) 185 1.3 230 — 633 70.7 112 11.6 530 7.0 953 7.8 106 50.2 2)(73.8) (24) (14.9) (92) 7)(48.1) (72) (84.5) (89) 5)(99.9) (54) (12.1) (34) 10 467.3 14 119.1 0 (5.8) (0) (63.8) (0) (60.6) (1) (100.0) (0) (8.3) (4) 4 43.4 5 9.0 4 — 0 — 0 — 6 895.2 7 2,322.7 (Millions ofyen) Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

109 (Millions of yen) 1 157.1 (4) (69.4)% (4) (69.4) (4) (69.4) (0) (29.4) (0)(0) (1.5) (1.5) NKSJ Holdings, Inc. 3.7 211 6,456.9 210 — 185 1.3 530 7.0 112 11.6 (216) (12.5) 15.8 (19.5) 2,379 33.7 2,596 48.6 (3,954) — (3,953) — (2,836) — (3,745) — Increase Increase (Decrease) Rate of change 2 2 2 1 2 21 21 215 210 63.4 65.3 (28.7) 8,102 1,076 9,451 1,511 7,939 (6,258) (6,279) (4,150) (6,114) 14,479 March 31, 2012 March (April 1, 2011 to March 31, 2012) March Fiscal year ended 6 3 21 21 5,343 (2,303) (2,325) Amount Amount (April 1, 2010 to March 31, 2011 March March 31, 2011) March Fiscal year ended Operating, general and administrative to underwriting expenses related Extraordinary gains: Extraordinary under the special laws: Reversal of reserves 6 uctuation for price ﬂ Reversal of reserve 6 Extraordinary losses: Extraordinary xed assets disposal of ﬁ Losses on 2 Impairment losses Impairment 1 Other extraordinary losses extraordinary Other — income taxes Loss before Income taxes Income income taxes Total loss Net Underwriting result: written premiums Net (+) 14,294 Net claims paidclaims Net (–) 7,571 Loss adjustment expensesadjustment Loss (–) 964 Operating expenses: Operating (–) 7,071 fees Net commissions and brokerage 1,727

Underwriting result Underwriting (1,313) Underwriting profi t (loss)t profi Underwriting (2,369) Ratios: ratioloss Net (%) 59.7 Net expense ratioexpense Net (%) 49.5 Underwriting result ratio result Underwriting (%) (9.2) Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 110 Balance Sheets NKSJ HimawariLifeInsurance,Inc.(Non-consolidated) Ttla st 1,715,400 Total assets ahaddpst:56,382 Cashanddeposits: Assets: te ses31 21,872 (35) 31 1,551 4,089 4,652 908 36,033 24,768 4,114 164 1,555 Allowanceforpossiblecredit losses Deferred 2,579 taxassets 6,693 624 Other 644 assets 342 Suspense payments Derivative assets 32,949 Advance 1,611 32,949 deposits Accrued income Prepaid expenses Accounts receivable 50,891 Other assets: 10,932 Reinsuranceaccounts receivable Agencyaccountsreceivable 388,827 Otherintangiblefi xed assets 125,942 1,507,240 Software 19,963 930,646 Intangiblefi 599 xed assets: Othertangiblefi xed assets 56,358 Leased assets Buildings Tangible fi xed assets: Policy loans Loans: Foreign securities 30,370 Domestic stocks Corporate bonds Municipal bonds Government bonds Securities: Money trusts Receivablesundersecuritiesborrowing transactions Call loans Deposits Cash NKSJ Holdings, Inc. As ofMarch 31,2011 mutAmount Amount 23 As ofMarch 31,2012 1,809,210 1,126,262 1,672,594 382,065 120,094 42,764 19,343 24,822 34,092 34,091 34,091 34,301 42,752 2,851 4,746 1,173 1,467 3,101 3,101 1,676 9,869 365 137 255 619 801 (58) 11 37 96 — — — — Increase (Decrease) 195,616 165,353 (13,617) (16,590) (19,963) (30,370) (13,606) 93,809 (2,529) (1,941) (2,579) (1,185) (6,761) (5,847) (1,238) (1,013) (3,592) (1,062) 1,141 1,141 (Millions ofyen) (599) 177 264 (11) (22) (26) (87) (24) (87) 53 65 93 65 5 Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

111 (0) (4) (6) — — 74 61 24 (84) 246 252 393 326 326 (822) (196) (116) (109) (Millions of yen) 7,480 7,480 (3,624) (1,461) 93,809 20,000 97,434 20,000 (11,101) (11,105) (11,105) (11,101) (32,247) (30,970) (20,000) 129,247 129,824 Increase (Decrease) Increase NKSJ Holdings, Inc. Insurance Company, Limited. Insurance Company, — — — 43 24 325 931 194 120 687 150 4,034 1,718 3,466 1,248 7,294 5,167 1,881 1,881 15,633 63,208 75,786 12,578 12,578 24,615 20,000 15,958 15,958 17,250 30,000 10,000 1,809,210 1,717,788 1,689,139 1,733,423 As of March 31, 2012 As of March 325 5,097 Amount Amount As of March 31, 2011 As of March tax net of securities available for sale, Reserve under Article 10 of the Supplementary Provisions of Reserve under Article 10 of the Supplementary Provisions of the Insurance Business Act for Enforcement Ordinance Retained earnings carried forwardcarried earnings Retained equity shareholders’ Total and translation adjustments: Valuation gains and losses on Unrealized 26,734 74,313 net assets Total liabilities and net assetsTotal 1,715,400 79,411 adjustments valuation and translation Total 5,097 Note) of Sompo Japan Himawari Life Insurance Co., Ltd. and NIPPONKOA Life the combined result 31, 2011 represents Amount as of March reserves Reserve for outstanding claims Policy Reserve for dividends to policyholders 25,437 receipts 3,787 Suspense ts benefi Reserve for retirement 1,559,315 surplus capital Other earnings: Retained 1,325 reserve Legal 1,128 earnings: retained Other — 27,059 27,063 4 Liabilities: reserves: Policy 1,588,540 accounts payable Agency Reinsurance accounts payableliabilities: Other payable taxes securities lending transactions Payables under Income expenses Accrued received Deposits liabilities Derivative obligations Lease 30,970 ts to directors benefi Reserve for retirement to directors Reserve for bonus payments 1,358 3,582 laws: Reserves under the special liabilitiesuctuation price fl Reserve for Total Net assets: 39,542 equity: 49 Shareholders’ stock Common surplus: Capital 4,915 reserves Capital 120 84 58 688 — 1,554 1,554 1,635,989 37,250 10,000 10,000 Accounts payable Accounts 1,611 Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 112 379 35 95 13 34 334 893 Investment lossesonspecialaccount Other investment 119,750 expenses 1,143 Foreign 5,208 exchange losses Losses Lossesonsalesofsecurities on derivatives 109,028 2,283 122,036 1,659 28,127 Interest paid 32,810 Investment expenses: Provision forpolicyreserves 177,978 Provision for reserve foroutstandingclaims 24 Provision forpolicyreserves andother: Reinsurance premiums 1,063 Other 263 refunds Surrender — benefi Insurance ts 774 benefi 734 Annuity ts payments Insurance — claims Insuranceclaimsandother: 385 1,061 Ordinary expenses: Other Reversalofreserve foroutstandingclaims ordinary 0 52 income Fundreceipt forclaimdepositpayments Fundreceipt forannuityrider 29,208 26,973 28,088 Otherordinary income: 5,231 Investmentgainsonspecialaccount Gainsonsalesofsecurities 349,877 Investmentgainsonmoneytrusts 355,109 Other interest Interest anddividendsonsecurities and Interest dividends on loans Interest Interest anddividendincome: on deposits Investment income: Reinsurance income Insurance premiums Insurancepremiums andother: Ordinary income: Statements ofIncome NKSJ HimawariLifeInsurance,Inc.(Non-consolidated) credit losses Provision forallowancepossible dividendstopolicyholders Provision forinterest portionofreserve for NKSJ Holdings, Inc. Fiscal yearended March 31,2011) March 31,2011 (April 1,2010to 383,550 385,380 mutAmount Amount — 1 Fiscal yearended March 31,2012) (April 1,2011to March 31,2012 129,824 129,826 103,550 172,819 391,063 356,263 360,180 395,288 28,243 32,763 29,265 30,403 32,667 5,148 1,112 2,001 2,440 1,784 1,116 3,917 455 103 659 102 822 855 659 353 125 34 31 32 22 — — 1 1 0 Dces)Rateofchange (Decrease) 10,073 8.4 Increase 223 (100.0) (2,283) (25.1) (1,313) 547 (5.0) (5,477) (2.9) (5,158) 1,376 129.5 1,050 142.9 2,291 8.5 2,315 8.2 3,459 11.8 7,790 6.4 7,513 2.0 6,385 1.8 5,071 1.4 9,908 2.6% 39 (100.0) (379) (26.2) (233) (67.4) (259) 341 20.6 121 36.3 116 0.4 822 — 395 150.0 353 — 6)(1.2) (2.8) (60) (31) (0.1) (47) (58.4) (30) 1)(91.7) (12) 31 — 77 310.2 81 10.5 54 5.2 1 (4.4) (1) (4.7) (1) 0 (51.7) (0) 8 8.6 0 25.0 (Millions ofyen) Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

113 (Millions of yen) NKSJ Holdings, Inc. 28 154.8 (11)(11) (100.0) (100.0) 206 37.7 181 13.4 433 31.5 232 60.8 178 241.0 290 10.4 440 — 108 49.8 108 49.8 3,883 4.9% 3,883 4.9% 1,232 33.0 2,394 130.9 1,740 — ted for the six months ended (8,880)(1,299) — (89.0) (9,321) — Increase Increase 10,973 856.4 10,836 1,037.2 and NIPPONKOA Life Insurance (Decrease) Rate of change — — 46 (17) 754 615 252 326 326 159 (177) 4,965 1,537 1,806 4,225 3,093 82,793 12,254 11,880 (11,122) (11,105) March 31, 2012 March (April 1, 2011 to March 31, 2012) March Fiscal year ended 11 (458) 1,830 1,281 2,802 1,459 (2,242) (1,917) (1,784) Amount Amount (April 1, 2010 to March 31, 2011 March March 31, 2011) March Fiscal year ended t Company, Limited. Amount for the fi scal year ended March 31, 2012 includes the result of NIPPONKOA Life Insurance Company, Limi of NIPPONKOA Life Insurance Company, includes the result 31, 2012 scal year ended March Limited. Amount for the fi Company, September 30, 2011. Note) Japan Himawari Life Insurance Co., Ltd. of Sompo the combined result 31, 2011 represents scal year ended March Amount for the fi general and administrative expenses Operating, payments expenses:ordinary Other deposit Claim Taxes 78,909 547 3,733 1,355 Depreciation expenses ordinary ts benefi for retirement for reserve Provision Other profi Ordinary gains: Extraordinary 382 74 income taxes Loss before 1,373 income taxes Total Net loss gains Other extraordinary losses: Extraordinary xed assets Losses on disposal of fi under the special laws: for reserves Provision uctuation for price fl for reserve Provision losses Other extraordinary for dividends for reserve Provision policyholders to 218 Income taxes income taxes Deferred 218 18 11 1,044 Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 114 Balance Sheets Sompo JapanDIYLifeInsuranceCo.,Ltd.(Non-consolidated) Ttla st 6,014 0 36 74 0 3 288 172 3 0 Total assets 1,064 1,064 Other assets 19 7 24 Suspense payments Advance deposits 51 Accrued income Prepaid expenses 2,021 Accounts 757 receivable 4,354 Other assets: 251 Reinsuranceaccountsreceivable 1,575 Agencyaccountsreceivable Otherintangiblefi xed assets 251 Intangiblefi xed assets: Othertangiblefi xed assets Leased assets Buildings Tangible fi xed assets: Other securities Domestic stocks Government bonds Securities: Deposits Cashanddeposits: Assets: NKSJ Holdings, Inc. As ofMarch 31,2011 mutAmount Amount As ofMarch 31,2012 4,863 2,223 1,272 4,148 176 247 652 401 401 62 26 22 14 39 — — 0 5 0 2 0 2 Increase (Decrease) (1,064) (1,064) (1,151) (Millions ofyen) (104) (303) (206) 150 150 201 (40) (31) (11) (12) 22 (0) (1) (5) (2) (4) 3 0 0 Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

115 0 0 0 4 1 1 (1) (0) (5) — — — — (76) (45) (31) (54) (48) (55) (49) (49) (181) (969) (920) (920) (920) (920) (Millions of yen) (1,151) Increase (Decrease) Increase NKSJ Holdings, Inc. 4 0 3 1 2 0 30 29 18 18 99 270 857 173 164 224 224 1,128 1,482 3,380 4,863 2,100 2,100 3,156 (9,043) (9,043) (9,043) 10,100 As of March 31, 2012 As of March Amount Amount As of March 31, 2011 As of March tax 273 net of securities available for sale, Liabilities: reserves: Policy 1,204 reserves Reserve for outstanding claims Policy accounts payable Agency 315 888 3 accounts payable Reinsurance liabilities: Other payable Accounts expenses Accrued 31 227 — 213 Income taxes payabletaxes Income received Deposits liabilities Total Net assets: equity: Shareholders’ stock Common 3 1 adjustments valuation and translation Total net assets Total liabilities and net assetsTotal 1,664 10,100 273 6,014 4,350 Lease obligations Lease receipts Suspense ts benefi Reserve for retirement laws: Reserves under the special uctuation price fl Reserve for tax liabilities Deferred surplus: Capital reserves Capital earnings: Retained 24 8 16 0 16 155 2,100 2,100 (8,123) Other retained earnings: retained forward Other carried earnings Retained equity shareholders’ Total and translation adjustments: Valuation on gains and losses Unrealized (8,123) (8,123) 4,076 Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 116 Statements ofIncome Sompo JapanDIYLifeInsuranceCo.,Ltd.(Non-consolidated) Net income(loss) Total incometaxes Income taxes Income (loss)before incometaxes te eud 4 212 752 1,105 Other refunds — Insurance benefi 32 ts Insurance 32 claims Insuranceclaimsandother: 95 3,655 3,751 Interest Interest anddividendincome: on deposits Investment income: Reinsurance income Insurance premiums Insurancepremiums andother: Ordinary income: enuac rmus136 174 0 11 11 Provision forpolicyreserves andother: Reinsurance premiums — 32 Ordinary expenses: Other Reversalofpolicyreserves ordinary income Reversalofreserve foroutstandingclaims Otherordinary income: Interest anddividendsonsecurities rvso o eev o usadn lis174 Provision forreserve foroutstandingclaims Ivsmn xess 2 Investment expenses: neetpi 2 Interest paid te riayepne:53 2,448 Otherordinary expenses: Operating,generalandadministrativeexpenses ae 16 32 4 Provision forreserve forretirement benefi ts Depreciation Taxes Ordinary profi Extraordinary losses: osso ipslo e ses— 1 Provision forreserves underthespeciallaws: Lossesondisposal offi xed assets rvso o eev o rc cuto 1 Provision for reserve forpricefl uctuation NKSJ Holdings, Inc. t Fiscal yearended March 31,2011) March 31,2011 (April 1,2010to mutAmount Amount 3,794 3,784 10 5 3 3 8 1 Fiscal yearended March 31,2012) (April 1,2011to March 31,2012 1,148 1,508 4,008 3,696 3,901 3,728 2,170 1,197 1,195 (920) (916) 220 205 133 280 26 26 31 45 80 26 48 27 16 — — 3 3 0 5 3 0 0 4 1 1 Dces)Rateofchange (Decrease) Increase 1,195 98,439.6 1,195 — 95 (18,266.7) (925) 95 (10,437.8) (925) 14 (100.0) (174) 14 (100.0) (174) 27 (11.3) (277) 213 5.6% 396 52.7 402 36.4 110 115.7 150 4.0 270 2,682.2 5)(1.5) (56) 40 1.1 20 183.6 45 — 69 621.1 —— —— 5 (17.9) (17.9) (5) (5) 5 (17.9) (5) 2 (1.9) (2) 2 (91.6) (2) 2 (91.6) (2) 5 (15.8) (2.1) (5) (0) 5 (9.5) (5) 0 (1.7) (0) 0 (1.7) (0) 0 — 7 3.6 0 23.0 3 3,478.2 0 10.1 (Millions ofyen) Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

117 NKSJ Holdings, Inc. Risks of rate of occurrence of insurance claims, etc. in excess of normal estimates (excluding risks relating to of normal estimates (excluding risks relating of insurance claims, etc. in excess Risks of rate of occurrence major catastrophes) for saving-type insurance and life insurance due to rates interest Risks of invested assets failing to yield assumed the aggravation of investment conditions t such as insurance claims and others for variable insurance and vari- to guaranteed minimum benefi Risks related able annuities, etc. uctuating in prices in excess of normal estimates Risks of securities and other assets held fl that do not fall under other categories business management Risks beyond normal estimates arising from and casualty insur- for property losses in excess of normal estimates of major catastrophic Risks of the occurrence losses in foreign or major catastrophic Typhoon Kanto Earthquake, Isewan ance policies (risks such as the Great countries) Underwriting risk for property and casualty insurance business, Underwriting risk for life insurance business, Underwriting risk for life insurance business, and casualty insurance business, Underwriting risk for property insurance, sickness and nursing-care including accident, insurance products Underwriting risk for third-sector companies: to small amount and short term insurance Underwriting risk related The NKSJ Group (the “Group”) is an insurance company group and operates property and casualty insurance busi- operates property and group is an insurance company (the “Group”) The NKSJ Group subsidiaries. business at the NKSJ Holdings, Inc. (the “Company”)’s ness and life insurance etc., it is necessary for property ts and maturity refunds, for claims, benefi to cover payments In addition to reserves which may to cover against risks cient solvency in order to maintain suffi company group and casualty insurance held by insur- and big decline in value of assets of major catastrophes i.e. occurrence exceed its normal estimates, ance company group. of for Enforcement the Ordinance with (Consolidated), which is calculated in accordance (C) Solvency Margin Ratio Service Agency (2011), is the of Public Notice No. 23 of the Financial Act and the provisions the Insurance Business Solvency etc.” ((A) Total reserves, by means of its capital, of insurance company group ratio of “solvency margin Risks (Consolidated)). its normal estimates” ((B) Total Margin (Consolidated)) to “risks which will exceed nancial statements. is primarily same with that of the consolidated fi The scope of solvency margin ratio (consolidated) etc.” (total solvency margin “Solvency margin of the Company and its subsidiaries by means of their capital, reserves, of sur- appropriation (consolidated)) is the sum of total net assets of the Company and its subsidiaries, etc. (excluding etc.) and parts of net unrealized loss reserve, uctuation and catastrophic for price fl (reserve plus), certain reserves gains and losses on land in Japan, etc. nancial soundness of insurance authorities to monitor fi Solvency margin ratio is one of the indicators for the regulatory meet payments of possible companies. Solvency margin ratio exceeding 200% would indicate adequate capability to insurance claims and others. • • • composed of risks described below. are • “Risks which will exceed its normal estimates” <1> rate risk: <2> Guaranteed interest t risk for life insurance policies: <3> Guaranteed minimum benefi <4> Investment risk: <5> Business management risk: risk: <6> Major catastrophe • • Solvency Margin Ratio of NKSJ Holdings, Inc. on a Consolidated Basis a Consolidated on Inc. Holdings, NKSJ of Ratio Margin Solvency Solvency Margin Ratio (Consolidated) Solvency Margin (Unaudited) Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 118

NKSJ Holdings, Inc. Note) NKSJ Holdings,Inc.(Consolidated) [(A)/{(B)×1/2}]100 (C) SolvencyMarginRatio(Consolidated) (B) Total Risks(Consolidated) (A) Total SolvencyMargin(Consolidated)

Act andPublicNoticeNo.23oftheFinancialServiceAgency(2011). The abovefi gures are calculatedbasedontheprovisions ofArticles210-11-3and210-11-4theOrdinance forEnforcement of Business managementrisk(R Major catastrophe riskforproperty andcasualtyinsurancepolicies(R Underwriting riskforlifeinsurancebusiness(R e nelzdgisadlse nln 14,845 519 — Others Deductions Total solvencymarginrelated tosmallamountandshortterminsurance companies from totalsolvencymargin Excess amountofsurplussuchaspremium fundandsubordinated debt,etc.whichare excluded Subordinated debt,etc. Surplus suchaspremium fund Net unrealized gainsandlossesonland Unrealized gainsandlossesonsecurities(before taxeffect deductions) General allowanceforpossiblecredit losses Catastrophic lossreserve Contingency reserve Reserve forpricefl uctuation Capital andfunds,etc. Underwriting riskforproperty andcasualtyinsurancebusiness(R ͱ Guaranteed minimumbenefi t riskforlifeinsurancepolicies(R Underwriting riskrelated to smallamountandshortterminsurancecompanies(R Investment risk(R Guaranteed interest raterisk (R nursing-care insurance(R Underwriting riskforthird-sector insuranceproducts includingaccident,sicknessand ( ͱ R 1 2 +R 2 2 +R 3 +R 4 7 ) ) 2 +(R 5 +R 3 ) 6 +R 8 7 ) ) 2 5 +R ) 8 +R 9 2 11,560 ) 6 337 ) 1 9 170,949 ) 256,685 ) 4 )— As ofMarch 31,2012 the InsuranceBusiness 1,940,876 358,197 114,133 128,000 112,359 429,824 601,951 636,539 706,016 17,117 79,481 23,831 27,658 35,747 (Millions ofyen) 549.8% 5,720 — Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

119 NKSJ Holdings, Inc. Risks of rate of occurrence of insurance claims, etc. in excess of normal estimates (excluding risks relating to of normal estimates (excluding risks relating of insurance claims, etc. in excess Risks of rate of occurrence major catastrophes) due to the aggravation of investment conditions rates interest Risks of invested assets failing to yield assumed uctuating in prices in excess of normal estimates Risks of securities and other assets held fl that do not fall under other categories business management Risks beyond normal estimates arising from Kanto (risks such as the Great losses in excess of normal estimates of major catastrophic Risks of the occurrence Earthquake or Isewan Typhoon) uctuating in prices in excess of normal estimates Risks of special account assets fl In addition to reserves to cover payments for claims, benefi ts and maturity refunds, etc., it is necessary for insurance refunds, ts and maturity for claims, benefi to cover payments In addition to reserves which may exceed their normal estimates, to cover against risks cient solvency in order suffi companies to maintain fac- cant changes in key environmental due to signifi uctuation in mortality rate fl of major catastrophes, i.e. occurrence value of assets held by insurance companies. tors and big decline in with the Insurance Business Act, is accordance (Non-consolidated), which is calculated in (C) Solvency Margin Ratio Solvency etc." ((A) Total their capital, reserves, margin of insurance companies by means of the ratio of "solvency Risks (Non-consolidated)). ((B) Total to "risks which will exceed their normal estimates" Margin (Non-consolidated)) below. composed of risks described their normal estimates" are "Risks which will exceed etc." (total solvency margin (non-con- means of their capital, reserves, "Solvency margin of insurance companies by uctuation, for price fl (reserve ows), certain reserves planned outfl solidated)) is the sum of total net assets (excluding gains and losses on land, etc. etc.) and parts of net unrealized loss reserve, and catastrophic contingency reserve nancial authorities to monitor fi one of the indicators for the regulatory Solvency margin ratio (non-consolidated) is margin ratio exceeding 200% would indicate adequate capability to soundness of insurance companies. Solvency others. meet payments of possible insurance claims and 31, 2012. March from applied are to calculate solvency margin ratio (non-consolidated) standards The current is also standards 31, 2011 calculated under the current Solvency margin ratio (non-consolidated) as of March described as reference. 31, 2012, solvency margin March on a consolidated basis was adopted from Since a solvency margin ratio regulation “(non-consolidated)” like stated with words in the past are items represented ratio and some of other related “Solvency margin ratio (Non-consolidated)”. • • • sickness and nursing- including accident, insurance products Underwriting risk for third-sector <1> Underwriting risk, insurance: care rate risk: <2> Guaranteed interest <3> Investment risk: <4> Business management risk: risk: <5> Major catastrophe t risk: <6> Guaranteed minimum benefi • • • • Solvency Margin Ratios of Principal Consolidated Subsidiaries Consolidated Principal of Ratios Margin Solvency Solvency Margin Ratio (Non-consolidated) Solvency Margin (Unaudited) Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 120 NKSJ Holdings, Inc. NIPPONKOA InsuranceCo.,Ltd.(Non-consolidated) Sompo JapanInsuranceInc.(Non-consolidated) Note) (B) Total Risks(Non-consolidated) [(A)/{(B) × 1/2}]100 (C) SolvencyMarginRatio(Non-consolidated) [(A)/{(B)×1/2}]100 (C) SolvencyMarginRatio(Non-consolidated) A oa ovnyMri Nncnoiae)7286 9,9 742,896 598,090 (B) Total Risks(Non-consolidated) 742,896 (A) Total SolvencyMargin(Non-consolidated) 1,476,906 1,213,539 1,476,906 (A) Total SolvencyMargin(Non-consolidated)

applied from March 31, 2012.The“FormerStandards” are standards before refl ection of therevisions. Services Agency(2010), CabinetOffi ce Ordinance No.18(2012)andPublicNotice 33oftheFinancialServicesAgency(2012) The “Current Standards” are standards whichrefl ect therevisions ofCabinetOffi ce Ordinance No.23(2010),PublicNotice Public NoticeNo.50oftheMinistryFinance (1996). The abovefi gures are calculatedbased ontheprovisions ofArticles86and87 oftheOrdinance forEnforcement oftheInsuranc otnec eev 1 61 611 487,656 611 17,305 400,229 389,766 611 260,654 14,436 487,656 400,229 17,305 Catastrophic lossreserve Contingency reserve Reserve forpricefl uctuation Capital andfunds,etc. tes14286,6 154,258 154,25860,763 157,360 157,36079,975 128,000 — 128,000 30,177 404 128,000 — 24,062 286 — 30,177 404 Others Deductions debt, etc.whichare excludedfrom totalsolvencymargin Excess amountofreserve formaturityrefunds andsubordinated Subordinated debt,etc. Excess amountofreserve formaturityrefunds Net unrealized gainsandlossesonland Unrealized gainsandlossesonsecurities(before taxeffect deductions) General allowanceforpossiblecredit losses Business managementrisk(R accident, sicknessandnursing-care insurance(R Underwriting riskforthird-sector insuranceproducts including Business managementrisk(R accident, sicknessandnursing-care insurance(R Underwriting riskforthird-sector insuranceproducts including Investment risk(R Guaranteed interest raterisk(R Investment risk(R Guaranteed interest raterisk(R uodntddb,ec — 33,866 33,86611,450 13,269 14 13,26911,769 — — 75 — 10 287,719 15,866 8,611 230,001 — 208,934 14 12,637 51 11,289 170,903 287,719 — 15,866 230,001 8,611 75 Others Deductions debt, etc.whichare excludedfrom totalsolvencymargin Excess amountofreserve formaturityrefunds andsubordinated Subordinated debt,etc. Excess amountofreserve formaturityrefunds Net unrealized gainsandlossesonland Unrealized gainsandlossesonsecurities(before taxeffect deductions) General allowanceforpossiblecredit losses Catastrophic lossreserve Contingency reserve Reserve forpricefl uctuation Capital andfunds,etc. Major catastrophe risk(R Major catastrophe risk(R Underwriting risk(R Underwriting risk(R ͱ ͱ (R (R 1 1 +R +R 2 2 ) ) 2 2 +(R +(R 3 3 +R +R 4 4 ) ) 2 2 4 4 +R +R 8201658 147,295 78,200126,578 ) 301,892 173,292279,213 ) 1 1 7825,1 55,228 37,85256,018 ) 108,300 77,389108,974 ) 5 5 +R +R 6 6 6 6 3,8 0,0 108,013 133,986100,700 ) 174,665 191,119155,365 ) 5 5 ,8 ,6 9,628 7,5895,863 ) 12,070 8,93811,226 ) 3 3 ,2 ,7 10,408 2,9269,872 ) 18,681 5,14417,763 ) 2 2 ) ) Former Standards Former Standards March 31,2011 March 31,2011 1,2 1,3 415,622 415,622 414,934 9,5 8,3 525,109 394,555 482,931 3,9 5,6 284,736 231,098 254,066 8,1 9,8 180,010 180,010 194,583 As of As of 4.%408 521.8% 470.8% 642.9% 562.5% 502.5% 748.6% —— —— 1 1 Current Standards Current Standards March 31,2012 March 31,2012 Mlin fyn [Reference] (Millions ofyen) Mlin fyn [Reference] (Millions ofyen) As of As of —— —— Current Standards Current Standards . Theserevisions are e BusinessActand March 31,2011 March 31,2011 48 oftheFinancial As of As of Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

121 As of As of 48 of the Financial March 31, 2011 March March 31, 2011 March e Business Act and . These revisions are are . These revisions Current Standards Current Current Standards Current NKSJ Holdings, Inc. —— —— As of As of (Millions of yen) [Reference] (Millions of yen) [Reference] March 31, 2012 March March 31, 2012 March Current Standards Current Current Standards Current —— — —— — (72) 68 (72) 285 355 285 962 1,700 1,521 1,633 2,012 2,114 As of As of 1,677.2% 713.2% 1,295.8% 1,695.8% 822.9% 1,072.8% March 31, 2011 March March 31, 2011 March Former Standards Former Standards ) ) 2 2 ) 6 27 25 )——— 3 3 ) 58 72 77 ) 32 58 53 5 5 ) 579 512 579 ) 105 107 105 6 6 6 6 +R +R 5 5 ) 846 1,287 1,260 ) 809 1,491 1,316 1 1 ) 516 590 707 ) 153 358 351 +R +R 4 4 2 2 ) ) 4 4 +R +R 3 3 +(R +(R 2 2 ) ) 2 2 +R +R 1 1 (R (R ͱ ͱ Underwriting risk (R Underwriting risk (R Major catastrophe risk (R Major catastrophe Capital and funds, etc.uctuation Reserve for price fl Contingency reserve loss reserveCatastrophic lossesGeneral allowance for possible credit deductions) tax effect gains and losses on securities (before Unrealized — 10,207 7 3,185 3,928 — 8 5 2,873 10,207 10 — 3,185 7 8 Net unrealized gains and losses on landNet unrealized for maturity refundsExcess amount of reserve debt, etc.Subordinated and subordinated for maturity refunds Excess amount of reserve total solvency margin excluded from debt, etc. which are DeductionsOthers — — — — — — — — — 2 3 2 — — — Investment risk (R Guaranteed interest rate risk (R Guaranteed interest risk (R Major catastrophe Guaranteed interest rate risk (R Guaranteed interest Investment risk (R Underwriting risk for third-sector insurance products including products insurance Underwriting risk for third-sector insurance (R accident, sickness and nursing-care Business management risk (R Underwriting risk for third-sector insurance products including insurance products Underwriting risk for third-sector insurance (R accident, sickness and nursing-care Business management risk (R Unrealized gains and losses on securities (before tax effect deductions) tax effect gains and losses on securities (before Unrealized losses on land gains and Net unrealized for maturity refundsExcess amount of reserve debt, etc.Subordinated subordinated and for maturity refunds Excess amount of reserve total solvency margin excluded from debt, etc. which are DeductionsOthers — — — — — — — — — — — — — — — Capital and funds, etc.uctuation Reserve for price fl Contingency reserve loss reserveCatastrophic losses credit General allowance for possible — 7,867 23 340 — — 6,524 26 376 7,867 — — 23 340 — The above fi gures are calculated based on the provisions of Articles 86 and 87 of the Ordinance for Enforcement of the Insuranc for Enforcement of Articles 86 and 87 of the Ordinance calculated based on the provisions are gures The above fi Public Notice No. 50 of the Ministry of Finance (1996). No. 23 (2010), Public Notice No. ce Ordinance of Cabinet Offi ect the revisions which refl standards are Standards” The “Current No. 18 (2012) and Public Notice No. 33 of the Financial Services Agency (2012) ce Ordinance Services Agency (2010), Cabinet Offi ection of the revisions. refl before standards are 31, 2012. The “Former Standards” March applied from (C) Solvency Margin Ratio (Non-consolidated) [(A) / {(B) × 1/2}] × 100

(A) Total Solvency Margin (Non-consolidated)(A) Total 13,698 Risks (Non-consolidated) (B) Total 7,177 13,698 (A) Total Solvency Margin (Non-consolidated) Solvency (A) Total 8,160 6,996 8,160 (C) Solvency Margin Ratio (Non-consolidated) × 100 [(A) / {(B) × 1/2}] (B) Total Risks (Non-consolidated) (B) Total Note) Saison Automobile and Fire Insurance Company, Limited (Non-consolidated) Insurance Company, Saison Automobile and Fire Sonpo 24 Insurance Company Limited (Non-consolidated) Sonpo 24 Insurance Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 122 NKSJ Holdings, Inc. 3. 2. 1. Notes) NKSJ HimawariLifeInsurance,Inc.(Non-consolidated) (1/2)×(B) (A) (C) SolvencyMarginRatio(Non-consolidated) (B) Total Risks(Non-consolidated) 60,073 153,831 199,339 61,719 159,904 (A) Total SolvencyMargin(Non-consolidated) provisions ofArticle1Paragraph1-3Public NoticeNo.25oftheFinancialServicesAgency(2011). Agency (2011).“ExcessofcontinuedZillmerizedreserve andsubordinated debt,etc.whichare excludedfrom totalsolvencymarg “Excess ofcontinuedZillmerizedreserve” is calculatedundertheprovisions ofArticle1Paragraph1-1PublicNoticeNo.25 Guaranteed minimumbenefi t riskiscalculatedbythestandard method. The “Formerstandards” are standards before refl ection oftherevisions. previous fi scal year. The fi gures shownasreference are calculatedbyusingtherevised standards tothefi nancial results asofMarch 31, 2011.The ening andrefi ning ofriskmeasurements, etc.) of theFinancialServicesAgency(2010),standards forthecalculationofsolvencymarginratioare partiallyrevised (tigh Insurance BusinessActandPublicNoticeNo.50oftheMinistryFinance(1996).Under CabinetOffi ce Ordinance No.23(2010) The fi gures asofMarch 31,2012are calculatedbasedontheprovisions ofArticles86,87,161,162and 190oftheOrdinance f eutos————— — — — — 805 14,667 7,264 — — 15,5201,352 — — — Others Deductions Brought incapital,etc. Business managementrisk(R Investment risk(R Guaranteed interest raterisk (R Underwriting risk(R Guaranteed minimumbenefi t risk(R nursing-care insurance(R products includingaccident,sicknessand Underwriting riskforthird-sector insurance uodntddb,ec — — — — 27,847 — 74,145 112,359 27,847 74,145 solvency margin ordinated debt,etc.whichare excludedfrom total Excess ofcontinuedZillmerizedreserve andsub- Subordinated debt,etc. Excess ofcontinuedZillmerizedreserve (85% ofgainor100%loss) Net unrealized gainsandlossesonland eea loac o osbecei oss7 9 — 631 21,285 7 53,027 923 63,208 1,881 19 21,285 631 53,027 14,9394,752 22,677 — 14,9394,752 923 7 (90% ofgainor100%loss) Unrealized gainsandlossesonsecurities General allowanceforpossiblecredit losses Contingency Reserve forpricefl uctuation Capital, etc. reserve ͱ (R 1 +R 8 ) 2 +(R × 100 2 +R 3 ,0 ,7 247 6,6923,021 12,447 4,2021,674 ) 3 +R 1 ,1 ,3 119 7,1143,134 11,109 7,1143,134 ) 7 ) 2 +R 8 ) 4 4 7 2 5 509157 752 376121 ) 2 ,1 7 8,084 7,388 624 3,217173 ) 7 2 3 323— 337 329— ) Sompo Japan Himawari Life Insurance Co., Ltd. ,0.%2563 1,449.5%1,646.7% 2,087.3% 2,596.3% 2,300.9% 3884742,0 18,6835,756 27,502 13,898 4,754 As ofMarch 31,2011 ,6 ,1 ,2 3,9661,113 5,625 3,966 1,113 ,4 ,4 638 1,3405,849 16,358 1,340 5,849 Former Standards — —— ——— Life Insurance NIPPONKOA Company, Limited Mlin fyn [Reference] (Millions ofyen) Standards March 31, 2,3)(,1)(1,099) (5,219) (24,430) Current 2012 As of tening ofmargincalculations,tight- Sompo Japan Himawari Life Insurance Co., Ltd. As ofMarch 31,2011 Current Standards se fi gures are disclosedin in” iscalculatedunderthe oftheFinancialServices and PublicNoticeNo.48 or Enforcement ofthe Life Insurance NIPPONKOA Company, Limited Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

123 As of and Public Notice March 31, 2011 March Current Standards Current or Enforcement of the or Enforcement se fi gures are disclosed in disclosed are gures se fi d (tightening of margin calcu- NKSJ Holdings, Inc. —— As of (Millions of yen) [Reference] March 31, 2012 March Current Standards Current —— — 95 93 95 567 569 593 385 292 385 As of 1,768.9% 1,400.8% 1,690.3% March 31, 2011 March Former Standards ) 8 )——— 7 ) 0 0 0 2 ) 19 20 21 4 4 +R 2 ) ) 443 425 443 7 1 ) 102 175 191 3 +R 3 +R 2 × 100 +(R 2 ) 8 +R 1 (R ͱ Underwriting risk (R Investment risk (R Guaranteed minimum benefi t risk (R Guaranteed minimum benefi Guaranteed interest rate risk (R Guaranteed interest Business management risk (R Underwriting risk for third-sector insurance products including insurance products Underwriting risk for third-sector insurance (R accident, sickness and nursing-care Unrealized gains and losses on securities Unrealized (90% of gain or 100% of loss) gains and losses on land Net unrealized (85% of gain or 100% of loss) Excess of continued Zillmerized reserve debt, etc.Subordinated debt, and subordinated Excess of continued Zillmerized reserve total solvency margin excluded from etc. which are in capital, etc.Brought DeductionsOthers — — — — — — — — — — — — — — — Capital, etc.uctuation Reserve for price fl Contingency reserve losses credit General allowance for possible — 16 — 4,076 540 18 3,156 521 — 16 4,076 540 The fi gures as of March 31, 2012 are calculated based on the provisions of Articles 86, 87, 161, 162 and 190 of the Ordinance f and 190 of the Ordinance of Articles 86, 87, 161, 162 on the provisions calculated based 31, 2012 are as of March gures The fi No. 23 (2010) ce Ordinance of Finance (1996). Under Cabinet Offi Insurance Business Act and Public Notice No. 50 of the Ministry partially revise for the calculation of solvency margin ratio are No. 48 of the Financial Services Agency (2010), the standards etc.) ning of risk measurements, lations, tightening and refi 31, 2011. The as of March nancial results to the fi standards calculated by using the revised are shown as reference gures The fi scal year. fi previous ection of the revisions. refl before standards are The “Former standards” (C) Solvency Margin Ratio (Non-consolidated) (A) (1/2) × (B) (A) Total Solvency Margin (Non-consolidated) Solvency (A) Total 5,020 3,987 5,020 (B) Total Risks (Non-consolidated) (B) Total Note) Sompo Japan DIY Life Insurance Co., Ltd. (Non-consolidated) Sompo Japan DIY Life Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 124 Amsterdam NETHERLANDS Brussels BELGIUM Düsseldorf GERMANY Saint PeterPort GUERNSEY London U.K. Sompo Japan EUROPE Overseas Network Corporate Information Branch Offi ce Europe Limited(GermanyBranch) Sompo JapanInsuranceCompanyof Ark ReLimited Limited Sompo JapanCorporateMember Limited. Sompo JapanClaimServices(Europe) of Europe Limited(Headquarters) Sompo JapanInsuranceCompany (The NetherlandsBranch) of Europe Limited Sompo JapanInsuranceCompany of Europe Limited(BelgiumBranch) Sompo JapanInsuranceCompany 40474 Dusseldorf,GERMANY Uerdinger Strasse5, Channel IslandsGY14AT St. PeterPort,Guernsey, Maison Trinity, Trinity Square, London EC2M4YE,U.K. 1st Floor, 6Devonshire Square, THE NETHERLANDS 1083 HNAmsterdam, Barbara Strozzilaan 372, Eurocenter II-6thFloor, Bte 10,1050Brussels,BELGIUM Avenue Louise283, UK Branch NKSJ Holdings, Inc. Subsidiary orAffi liate Branch Offi ce ofaSubsidiaryoranAffi liate Istanbul TURKEY Dubai U.A.E. Moscow RUSSIA Barcelona SPAIN Milan ITALY Paris FRANCE MIDDLE EAST Dubai Representative Offi Moscow Representative Offi OJSC ICAllianz,NKSJDivision of Europe Limited(SpainBranch) Sompo JapanInsuranceCompany Europe Limited(ItalyBranch) Sompo JapanInsuranceCompanyof Europe Limited(FranceBranch) Sompo JapanInsuranceCompanyof Istanbul Representative Offi * branchesin7othercities Sompo JapanSigortaAnonimSirketi UNITED ARABEMIRATES P.O. Box25538, Port Saeed,Deira,Dubai, Offi ce 1100A,11th Floor, NGI House, 115184, RUSSIA Ozerkovskaya Nab.,Moscow, NKSJ Division,AllianzBuilding,30, 08005, Barcelona, SPAIN Torre Mapfre Villa-Olimpica, Calle delaMarina,16-18,Planta8A, Larga13,20122,Milano,ITALYVia 75009 Paris,FRANCE 6, Square deL‘OpéraLouisJouvet, Istanbul, TURKEY Sayar IsMerkezi K.:6 34752Icerenkoy, Brokerage Inc.CayiryoluSk. No.:11 c/o StratejiInsurance&Reinsurance Kavac No:12 Acarlaris Cumhuriyet Cad. 1 k-Beykoz /Istanbul,TURKEY ¸ merkeziCblok34805, Representative Offi ce ce ce ce Underwriting Agency Los Angeles New York U.S.A. Charlotte San Francisco Nashville Chicago NORTH AMERICA (Los AngelesBranch) SJA InsuranceAgency, LLC of America(LosAngelesBranch) Sompo JapanInsuranceCompany Insurance CompanyofAmerica Sompo JapanFire &Marine of America(Headquarters) Sompo JapanInsuranceCompany (Headquarters) SJA InsuranceAgency, LLC of America(SanFranciscoBranch) Sompo JapanInsuranceCompany of America(NashvilleBranch) Sompo JapanInsuranceCompany of America(ChicagoBranch) Sompo JapanInsuranceCompany Los Angeles,CA90071,U.S.A. 633 West FifthStreet, Suite800, New York, NY10017-1414,U.S.A. 777 Third Avenue, 28thFloor, Suite 500,Charlotte,NC28277,U.S.A. 11405 NorthCommunityHouseRoad, Suite 203SanBruno,CA94066,U.S.A Lake AmirOffi ce Park, 1250BayhillDrive, Franklin, TN37067,U.S.A. 720 CoolSpringsBlvd., Cool SpringsI,Suite460, Elk Grove IL60007, U.S.A. Village, 25 NorthwestPointBlvd.,Suite745, Alliance Company Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

125 ce ce NKSJ Holdings, Inc. Sompo Japan Insurance (Hong Kong) Company Limited Hong Kong Branch 7th Floor, Seoul Finance Center, Seoul Finance Center, 7th Floor, 1-ka, Chung-ku, 84 Taepyung-ro Seoul, KOREA 22/F, Bank of East Asia Harbour 22/F, 56 Gloucester Road, View Centre, Hong Kong S.A.R., Wanchai, THE PEOPLE’S REPUBLIC OF CHINA Room 406-407, 4th Floor, East Tower, East Tower, Room 406-407, 4th Floor, Financial Center, World Road, No.1 Dong San Huan Middle Chaoyang District, Beijing, OF CHINA THE PEOPLE’S REPUBLIC Room 1901, Lincoln House, Road, King’s Place, 979 Taikoo Island East, Hong Kong S.A.R., THE PEOPLE’S REPUBLIC OF CHINA Shen Hsiang Tang Room C, 10th Floor, Sung Chiang Building, No. 146, TAIWAN Sung Chiang Road, Taipei, Room 1708 A, Metropolitan Tower, Tower, Room 1708 A, Metropolitan 68 Zou Rong Road, Chongqing, THE PEOPLE’S REPUBLIC OF CHINA Sompo Japan Consulting Inc. (Korea) Sompo Japan Reinsurance Company Limited Sompo Japan Insurance (Taiwan) Co., Ltd. Brokers Offi Representative Taipei Sompo Japan Insurance (China) Sompo Japan Insurance Co., Ltd. (Beijing Branch) Offi Chongqing Representative TAIWAN Taipei KOREA Seoul Beijing Chongqing Hong Kong Room 1602, 16th Floor, Genway Plaza, Room 1602, 16th Floor, Dun Road, 188 Wang Suzhou Industrial Park, Suzhou, Jiangsu Province, THE PEOPLE’S REPUBLIC OF CHINA 20th Floor, Hang Seng Bank Tower, Hang Seng Bank Tower, 20th Floor, 1000 Lujiazui Ring Road, Shanghai, Pudong New Area, THE PEOPLE’S REPUBLIC OF CHINA B, Room 4016, Tower Road, China Shine Plaza, 9 Lin He West Tian He District, Guangzhou, Guangdong Province, THE PEOPLE’S REPUBLIC OF CHINA 10th Floor, Dalian Senmao Building, Dalian Senmao Building, 10th Floor, 147 Zhong Shan Road, Xi Gang District, Dalian, Liaoning Province, THE PEOPLE’S REPUBLIC OF CHINA Room B501, Building 18, Park, No.1 Software Dalian, Xueyuan Square, Liaoning Province, THE PEOPLE’S REPUBLIC OF CHINA Av. Insurgentes Sur No. 1196 Piso 12 Insurgentes Av. del Valle, Desp. 1201 Col. Tlacoquemecatl MEXICO Mexico, D.F. 03200 C.P. Sompo Japan Insurance (China) Co., Ltd. (Jiangsu Branch) Sompo Japan Insurance (China) Co., Ltd. (Shanghai Branch) Sompo Japan Insurance (China) Co., Ltd. (Guangdong Branch) Sompo Japan Insurance (China) Co., Ltd. (Headquarters) Sompo Japan System Solutions (Dalian) Co.,Ltd. Sompo Japan Insurance De Mexico, Sompo Japan Insurance S.A. de C.V. ASIA Suzhou Shanghai Guangzhou CHINA Dalian MEXICO Mexico City Canada Branch Rua Coronel Xavier de Toledo, de Toledo, Xavier Rua Coronel No.114, 10th Floor, São Paulo-SP CEP01048-902-BRAZIL * branches in 43 other cities de Toledo, Xavier Rua Coronel No.114, 9th Floor, São Paulo-SP CEP01048-902-BRAZIL Rua Cubatão, 320-15º and. Paraíso São Paulo-SP CEP04013-001-BRAZIL Rua Cubatão, 320-12º and. Paraíso São Paulo-SP CEP04013-001-BRAZIL * branches in 10 other cities Rua Cubatão, 320 Paraíso São Paulo-SP CEP04013-001-BRAZIL Clarendon House 2 Church Street, Street, House 2 Church Clarendon Hamilton HM11, BERMUDA 25 York Street, Suite 602, Toronto, Suite 602, Toronto, Street, 25 York Ontario, M5J 2V5, CANADA Suite 1400, Street, 25 York Ontario, M5J 2V5, CANADA Toronto, Maritima Saude Seguros S.A. Maritima Saude Seguros Maritima Seguros S.A. Maritima Seguros (Headquarters) Sompo Japan do Brasil Ltda. Ltda. de Vistoria Sevicos Vistomar Yasuda Seguros, S.A. Seguros, Yasuda (Headquarters) EternaLimited Insurance Company Ace INA Insurance CENTRAL AND SOUTH AMERICA BRAZIL Sao Paulo BERMUDA Hamilton Toronto CANADA Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 126 Surabaya Jakarta INDONESIA Labuan Kuala Lumpur MALAYSIA Singapore SINGAPORE (Headquarters) Berjaya SompoInsuranceBerhad Tenet InsuranceCompanyLimited (Singapore) Pte.Ltd. Sompo JapanInsurance Pte. Ltd. Sompo JapanAsiaHoldings Indonesia P. T. SompoJapanInsurance Indonesia P. T. SompoJapanInsurance MALAYSIA 12 JalanImbi,55100,KualaLumpur, 18th Floor, MenaraBGI,PlazaBerjaya, * branchesin21othercities 048623, REPUBLICOFSINGAPORE #05-01/06 Singapore LandTower, 50 Raffl es Place, 048623, REPUBLICOFSINGAPORE #03-03 Singapore LandTower, 50 Raffl es Place, REPUBLIC OFINDONESIA Jl. PemudaNo.27-31,Surabaya60271, Medan PemudaBuilding,3rd Floor, P. T. SompoJapanInsuranceIndonesia, REPUBLIC OFINDONESIA Sudirman Kav. 10-11Jakarta10220, 18th Floor, Midplaza1Jl.Jend. Labuan F.T. MALAYSIA Jalan Merdeka 87000, Financial ParkLabuan, Level 11B,Block4Offi ce Tower, c/o EtiqaOffshore Insurance(L)Ltd, Labuan Branch NKSJ Holdings, Inc. Yangon MYANMAR Ho ChiMinhCity Hanoi VIETNAM Sriracha Bangkok THAILAND Manila PHILIPPINES United InsuranceCompanyofVietnam Hanoi Representative Offi Vietnam United InsuranceCompanyof Public Co.,Ltd. Sompo JapanInsurance(Thailand) Co., Ltd. Sompo JapanService(Thailand) Public Co.,Ltd. Sompo JapanInsurance(Thailand) Manila Representative Offi PGA SompoJapanInsuranceInc. Yangon Representative Offi Ho ChiMinhRepresentative Offi Hoan KiemDistrict,Hanoi,VIETNAM Unit 1102,2NgoQuyenStreet, 11th Floor, HanoiTung ShingSquare, Chonburi 20110,THAILAND 98/16 SukhumvitRoad,Sriracha, Bangkok 10500,THAILAND 990 Rama4Road,Silom,Bangrak, 12th Floor, AbdulrahimPlace, Makati, Metro Manila,PHILIPPINES 121 PaseodeRoxasLegaspiVillage, 5th Floor, CorinthianPlaza, MYANMAR Kyauktada Township, Yangon, Bogyoke AungSanStreet, Sakura Tower, No.339, Room No.1205,12thFloor, Ho ChiMinhCity, VIETNAM 115 NguyenHueStreet, District1, 8th Floor, SunwahTower, ce ce ce ce Chennai Mumbai INDIA Sydney AUSTRALIA Delhi Kolkata Allianz AustraliaInsuranceLimited OCEANIA Mumbai Representative Offi Company Limited(Headquarters) Universal SompoGeneralInsurance Company Limited(DelhiOffi Universal SompoGeneralInsurance Company Limited(KolkataOffi Universal SompoGeneralInsurance Company Limited(ChennaiOffi Universal SompoGeneralInsurance Mumbai 400059,INDIA 127, AndheriKurlaRoad,(East), Unit No.402,4thFloor, SangamComplex, Mumbai 400059,INDIA 127, AndheriKurlaRoad,(East), Unit No.401,4thFloor, SangamComplex, Mumbai, Chennai,KolkataandDelhi * branchesin50cities,otherthan AUSTRALIA 2 MarketStreet, Sydney, N.S.W. 2000, Forecourt BuildingLevel12, Allianz Centre, Chennai -600018,INDIA 554 &555,AnnaSalai,Teynampet, Capitale Towers, 5thFloor, Haryana, INDIA Sector 31,Gurgaon-122001, SCO 39&40, Kolkata -700017,INDIA 42A, Shakespeare Sarani, 7th Floor, Express Towers, Australia Branch ce ce) ce) ce) Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

127 ce ce ce ce) ce ce ce) NKSJ Holdings, Inc. Canada Branch Branch Singapore Guam Branch 7th Floor, Bangunan Public Bank, 7th Floor, No. 6, Jalan Sultan Sulaiman, 50000 MALAYSIA Kuala Lumpur, Suite 200 P.O. Box 5, Suite 200 P.O. Toronto, 20 Queen St. West Ontario M5H 3R3, CANADA 36 Robinson Road #11-01 City House, 068877, Singapore REPUBLIC OF SINGAPORE * branches in 16 other cities and one subsidiary in CAMBODIA 601 South Figueroa Street, Suite 2100, Street, 601 South Figueroa Los Angeles, CA 90017, U.S.A. ce Box 2980 Haganta, Post Offi Guam 96932, U.S.A. 180 North LaSalle Street, Suite 2503, Suite 2503, 180 North LaSalle Street, Chicago, IL 60601, U.S.A. Kuala Lumpur Representative Offi Kuala Lumpur Representative Toronto Representative Offi Representative Toronto and St. Paul Fire Marine Insurance Company NIPPONKOA Management Service Limited Private (Singapore) Offi Representative Singapore Lonpac Insurance Bhd NIPPONKOA Management NIPPONKOA Management Offi Corporation (Chicago Offi Chicago Representative NIPPONKOA Management Offi Corporation (Los Angeles Offi Los Angeles Representative Nanbo Guam Limited ASIA CANADA Toronto SINGAPORE Singapore MALAYSIA Kuala Lumpur Chicago Los Angeles Guam ce ce ce ce) U.S.A. Branch 14 Wall Street, Suite 812, Street, 14 Wall 10005, U.S.A. New York, One Tower Square, Hartford, Hartford, Square, One Tower CT 06183, U.S.A. 10, Rue de Milan, 75009 Paris, FRANCE Millennium House, ce “G” (4F) Trubnaya Offi St.12 Moscow 107045, RUSSIA Via XX Settembre 5/9, Via XX Settembre 16121 Genova, ITALY Teleportboulevard 110, Amsterdam, 110, Amsterdam, Teleportboulevard 1043 EJ, THE NETHERLANDS 110, Amsterdam, Teleportboulevard 1043 EJ, THE NETHERLANDS NIPPONKOA Management Corporation (Headquarters) Offi Representative New York NIPPONKOA Management Corporation Offi (Hartford Marine Corporation The Travelers OJSC IC Allianz (Russia), NKSJ Division Offi Moscow Representative NIPPONKOA Insurance Company (France Branch) Limited (Europe) Offi Paris Representative NIPPONKOA Insurance Company (Italy Branch) Limited (Europe) NIPPONKOA Insurance Company NIPPONKOA Insurance Limited (Europe) (The Netherlands Branch) Besloten NIPPONKOA Nederland Vennootschap NORTH AMERICA NORTH Hartford RUSSIA Moscow U.S.A. New York FRANCE Paris ITALY Genova NETHERLANDS Amsterdam ce ce ce Cantadorstr. 3, Cantadorstr. 40211 Düsseldorf, GERMANY Place de l’Alma 3, Bte-4, 1200 Brussels, BELGIUM P.O. Box 34 Albert House, P.O. South Esplanade, St. Peter Port Guernsey, Channel Islands GY1 4AU 1st Floor, John Stow House, 1st Floor, 18 Bevis Marks, London EC3A 7JB, U.K. NIPPONKOA Insurance Company (Belgium Branch) Limited (Europe) Offi Brussels Representative NIPPONKOA Insurance Company Limited (Germany Branch) (Europe) Offi Düsseldorf Representative Nippon Insurance Company of Limited (GuernseyEurope Branch) NIPPONKOA Management Services NIPPONKOA Management Limited (Europe) of Nippon Insurance Company Limited (Headquarters) Europe Offi London Representative NIPPONKOA Insurance Company NIPPONKOA Insurance Limited (Headquarters) (Europe) EUROPE BELGIUM Brussels Düsseldorf GERMANY Guernsey Saint Peter Port U.K. London Nipponkoa Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 128 Hanoi Ho ChiMinh VIETNAM Bangkok THAILAND Manila PHILIPPINES Jakarta INDONESIA

(Thailand) CompanyLimited NIPPONKOA InsuranceBroker Public CompanyLimited The NavakijInsurance Manila Representative Offi Jakarta Representative Offi PT. AsuransiNIPPONKOAIndonesia Hanoi Representative Offi Ho ChiMinhRepresentative Offi Bangkok Representative Offi Bangrak, Bangkok,10500,THAILAND 26th Flr., Rd.,Silom, NorthSathorn Bldg., Nakorn 100/48-55, 90/3-6Sathorn * branchesin24othercities Makati City, PHILIPPINES Pioneer House,108PaseodeRoxas, Surety Corporation,7thFloor, C/O PioneerInsurance& INDONESIA Jakarta 12920,P.O. Box3129, JI Jend,SudimanKav. 27, Permata BankTower I,8thFloor, * branchesin5othercities VIETNAM 2nd Fl.,35HaiBaTrung, HanoiCity, C/O BaovietInsurance, Ho ChiMinhCity, VIETNAM Unit 602,2NgoDucKe,District1, Me LinhPointTower 6thFloor, 10500, THAILAND Silom, Bangrak,Bangkok, 18th Floor, Rd., NorthSathorn ThaniIBldg., 90/53 Sathorn NKSJ Holdings, Inc. ce ce ce ce ce Qingdao Dalian Beijing Shenzhen CHINA Phnom Penh CAMBODIA New Delhi INDIA Dalian Representative Offi Beijing Representative Offi Shenzhen Representative Offi (China) Limited NIPPONKOA InsuranceCompany Phnom PenhRepresentative Offi New DelhiRepresentative Offi Qingdao Representative Offi THE PEOPLE’SREPUBLICOFCHINA Beijing 100004, Dongsanhuan Beilu,ChaoyangDistrict, Room 1001A,FortuneBuilding10/F, THE PEOPLE’SREPUBLICOFCHINA Ren MinRoad,Dalian,Liaoning116001, 805 DalianAsiaPacifi c Finance Centre 55 THE PEOPLE’SREPUBLICOFCHINA Shenzhen, Guangdong518048, No. 1ZhongXinSiRoadFutianDistrict, No. 903-904,KerryPlazaTower 2, Kingdom ofCambodia,P.O. Box1556 No. 23,Street 114,PhnomPenh, 7th Floor, CampuBankBuilding, THE PEOPLE’SREPUBLICOFCHINA Qingdao, Shandong266071, 76 XiangGangZhongLu, Room 609,Crowne PlazaQingdao, THE PEOPLE’SREPUBLICOFCHINA Shenzhen, Guangdong, No. 4013MintianRoad,FutianDistrict, Room 511,FujianIndustrialBankBuilding, Gurgaon 122009-03,INDIA 406, 4thFloor, Tower, Time MGRoad, ce ce ce ce ce ce Hong Kong Suzhou Shanghai Sydney AUSTRALIA Taipei TAIWAN OCEANIA (Asia) Limited NIPPONKOA InsuranceCompany Suzhou Representative Offi Shanghai Representative Offi Sydney Representative Offi Allianz AustraliaInsuranceLimited Taipei Representative Offi Hong KongRepresentative Offi THE PEOPLE’SREPUBLICOFCHINA Suzhou IndustrialPark,Jiangsu215021, No. 2SuhuaRoad, Unit 0515F, Building, International THE PEOPLE’SREPUBLICOFCHINA Shanghai 200336, Building No.85,LoushanguanRoad, Room C-1404,DongFangInternational Sydney, NSW2000,AUSTRALIA Level 12,2MarketStreet, TAIWAN R.O.C. Tun-Hwa SRoad,Taipei, Room 1403,No.205,Sec.1, THE PEOPLE’SREPUBLICOFCHINA 8 FlemingRoad,Wanchai, HongKong, 19th Floor, Tai Tung Building, Australia Branch ce ce ce ce ce Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

129 (%) Shares Shares Portion of Outstanding Outstanding (%) Portion of Shares Portion of Shares NKSJ Holdings, Inc. Number of Shares Held Shares (Thousands) 8,667 2.09 25,00219,313 6.02 14,747 4,65 11,807 3.55 10,227 2.84 2.46 415,352,294 1,200,000,000 Held (Thousands) Number of Shares Number of Shares 2 8 0.00 51,617 (As of March 31, 2012) (As of March Number of Shareholders (As of March 31, 2012) (As of March Common Share Share Common Name of Shareholder Name of Shareholder The number of shares held by The Dai-ichi Life Insurance Company, Limited Limited held by The Dai-ichi Life Insurance Company, The number of shares contributed by that company as trust assets for a includes 4,492 thousand shares listed in the name are the shares register, t trust (In the shareholder beneﬁ retirement t Trust). Beneﬁ & Banking Co., Ltd., Dai-ichi Life Insurance Retirement of Mizuho Trust Major Shareholders Major Shareholders Distribution and Shares Distribution and Shares

STATE STREET BANK AND TRUST STATE COMPANY Services Bank, Ltd. Japan Trustee account) (Trust Bank of Japan, Ltd. The Master Trust account) (Trust NKSJ Holdings Employee Association Shareholders The Dai-ichi Life Insurance Limited Company, FUNDSCBNY-ORBIS SSBT OD05 OMNIBUS CLIENTS ACCOUNT - TREATY Mizuho Corporate Bank, Ltd. Co., Ltd. Nippon Express SICAVCBNY-ORBIS 8,997 8,513 8,001 2.17 2.05 7,850 1.93 1.89 National and Regional Organizations Governmental Financial InstitutionsSecurities CompaniesOther Corporations InvestorsForeign Individuals and Others 187 SharesTreasury 60 1,202Total 158,884 49,681 15,357 484 43,576 38.25 49,753 147,245 3.70 1 10.49 11.98 35.45 51,617 527 415,352 0.13 100.00 Notes: Types of Shareholders Types Summary of Issued Shares of shares: Type number of authorized shares: Total outstanding: number of shares Total number of shareholders: Total The trading unit of the shares was amended The trading unit of the shares on October to 100 shares 1,000 shares from 1, 2011. If a public notice cannot be issued electronically, it will If a public notice cannot be issued electronically, be published in the Nihon Keizai Shimbun (newspaper). Mitsubishi UFJ Trust and Mitsubishi UFJ Trust Banking Corporation NKSJ Holdings issues public notices electronically (http://www.nksj-hd.com/) (Japanese only). * (First Section), Stock Exchange Tokyo Osaka Securities Exchange (First Section) April 1 through March 31 of March April 1 through the following year months of April 1 Held within three 31 March 100 Note: (As of March 31, 2012) (As of March Appointment of Twelve Directors Directors Appointment of Twelve Auditors Appointment of Two Disposition of Retained Earnings Matters for the General Meeting of Shareholders Share Information Share

The business report, the consolidated fi nancial statements and statements and nancial the consolidated fi The business report, of by the accounting auditors and the board the audit reports 31, 2012) auditors for FY2011 (April 1, 2011 to March The financial statements for FY2011 (April 1, 2011 to 31, 2012) March The proposals were approved as initially proposed. approved were The proposals Shares and Shareholders and Shares Proposal No. 2 No. Proposal 3 No. Proposal Proposal No. 1 No. Proposal Matters to be Reported 1. Matters to be Resolved The 2nd General Meeting of Shareholders was held on June 27, was held on June 27, The 2nd General Meeting of Shareholders resolved and the matters to be 2012. The matters to be reported as follows: were 2. Exchange listings: Shareholder registry registry Shareholder administrator: Public notices: Share-trading lot size: Share-trading Record date for dividends Record rights: and voting Fiscal year: Annual General Meeting Shareholders: of Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 130 • Specifi 1,686 companies ¥1,039,240 million pure investment sheet inwhichequityinvestmentsare held for purposesotherthan The numberofcompaniesandcarryingamountonthebalance Sompo Japan Status ofShares Held SH AE OPRTO ,2,0 4,661 4,786 9,123,000 631,500 5,485 4,967 ASAHI KASEICORPORATION 6,017 5,041,600 5,275 COMPANY, INC. 7,540 MITSUBISHI GASCHEMICAL 27,295,000 KYOCERA Corporation 6,362 8,012,000 7,871 2,630,000 Incorporated 8,158 7,791 7,264,500 The KansaiElectricPowerCompany, Kawasaki KisenKaisha,Ltd. 8,860 1,221,200 41,867,600 BRIDGESTONE CORPORATION 9,655,000 11,716,490 AEON CO.,LTD. The BankofKyoto,Ltd. 8,298 16,686,032 8,560 East JapanRailwayCompany Ajinomoto Co.,Inc. 6,488,000 Fuji HeavyIndustriesLtd. 10,002 2,566,800 11,914 Showa DenkoK.K. 12,983 11,863 13,097 10,713 Suruga BankLtd. 2,039,200 13,774 YAMATO HOLDINGSCO.,LTD. 4,100,000 21,496,000 NITTO DENKOCORPORATION 15,296 87,880,990 7,366,525 3,000,900 Hitachi, Ltd. 26,849,980 15,220 Murata ManufacturingCo.,Ltd. 15,327,200 15,669 TOYOTA MOTORCORPORATION 20,000,000 Mizuho FinancialGroup, Inc. AISIN SEIKICO.,LTD. 33,497 17,353,000 Sharp Corporation 78,942 18,781 JFE Holdings,Inc. 56,110,000 JX Holdings,Inc. 20,189,987 Panasonic Corporation 47,510 9,500,000 Hulic Co.,Ltd. 96,760 ITOCHU Corporation 53,928,000 SUZUKI MOTORCORPORATION 30,766,600 Marubeni Corporation Company, Limited The Dai-ichiLifeInsurance NISSAN MOTORCO.,LTD. Canon Inc. Honda MotorCo.,Ltd. business relationships Purpose forwhichshares are held:To maintainandstrengthen NKSJ Holdings, Inc. cshares held Company Name Number ofShares ,6,5 4,736 4,914 8,564,850 3,833,700 (Shares) 0,0 34,290 300,000 the BalanceSheet (Millions ofyen) Amount on Carrying Note: • Shares subjecttodeemedholding eta aa ala opn ,0 3,410 3,418 5,000 3,596 3,512 4,545,320 4,010 4,689,000 10,484,000 Central JapanRailwayCompany 3,759 3,632 Yamaguchi FinancialGroup, Inc. 3,721 Incorporated 5,471,000 Tohoku ElectricPowerCompany, 7,751,000 15,792,000 Tokyo Tatemono 4,616 Co.,Ltd. 14,709,000 4,147 4,162 ZEON CORPORATION 4,013 4,385 4,290 COSMO OILCOMPANY, LIMITED 7,248,000 Kawasaki HeavyIndustries,Ltd. 10,017,000 1,693,300 ISUZU MOTORSLIMITED 5,551,000 4,332 6,057,000 11,059,000 The IyoBank,Ltd. KONICA MINOLTA HOLDINGS,INC. The BankofYokohama, Ltd 5,540,000 Seven &iHoldingsCo.,Ltd NICHIREI CORPORATION Odakyu ElectricRailwayCo.,Ltd. Keikyu Corporation NSK Ltd. Company, Limited The Yokohama Rubber od oo o,Ld ,0,0 27,990 8,900,000 Honda MotorCo.,Ltd. cise votingrights Purpose forwhichshares are held:To secure theabilitytoexer- balance sheet. combined atthetimeofselectingaforementioned companiesrecorded onthe Specifi c shares forinvestmentandshares subjecttodeemedholdinghavenotbeen Company Name Company Name Number ofShares Number ofShares ,5,0 3,448 3,653,300 4,655 7,812,000 (Shares) (Shares) the BalanceSheet the BalanceSheet (Millions ofyen) (Millions ofyen) Amount on Amount on Carrying Carrying Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

131 Carrying Carrying Amount on Amount on (Millions of yen) (Millions of yen) the Balance Sheet the Balance Sheet NKSJ Holdings, Inc. 1,717,666 2,640 Number of (Shares) Shares (Shares) Shares Number of Shares Number of Shares Company Name Company Name Specifi c shares for investment and shares subject to deemed holding have not been for investment and shares c shares Specifi the on companies recorded combined at the time of selecting the aforementioned balance sheet. Purpose for which shares are held: To secure the ability to exer- the ability secure held: To are Purpose for which shares cise voting rights TOSHIBA CORPORATION 9,500,000 3,458 The Hokkoku Bank, Ltd.Mazda Motor CorporationKyowa Hakko Kirin Co., Ltd.Showa Sangyo Co., Ltd.The Hyakujushi Bank, Ltd.Kobe Steel, Ltd. 7,883,395 15,587,200 2,446,456 2,451 2,260 8,545,501 5,762,646 2,250 2,221 2,218 16,271,557 2,180 The Hachijuni Bank, Ltd. HONSHA CO., LTD.YAKULT CO., LTD.HOKUETSU KISHU PAPER AEON CO., LTD.The Hyakugo Bank, Ltd. 5,699,652 LTD.NIPPON SHOKUBAI CO., 1,114,760 6,515,541 Company, The Chugoku Electric Power 3,140 Incorporated East Japan Railway Company 3,171 3,179 2,781,350Sekisui Chemical Co., Ltd. 7,230,274 2,639,688 2,667 2,754 500,000 2,871 3,616,080 2,605 2,596 • Shares subject to deemed holding subject • Shares Note: Carrying Amount on (Millions of yen) the Balance Sheet 1,101,102 4,321 Number of Shares (Shares) Shares Company Name c shares held c shares Purpose for which shares are held: To maintain and strengthen and strengthen maintain held: To are Purpose for which shares business relationships Shin-Etsu Chemical Co., Ltd.ITOCHU CorporationKomatsu Ltd.TOSHIBA CORPORATIONHonda Motor Co., Ltd. 5,777,556Ajinomoto Co., Inc.NIPPON EXPRESS CO., LTD. 27,616 The Chiba Bank, Ltd. 30,104,714 51,308,000 LTD.RICOH COMPANY, LimitedShiseido Company, 27,184 50,294,850The Joyo Bank, Ltd. 18,676 5,700,000 10,462,448T&D Holdings, Inc. 16,097,994 Inc.Mitsubishi UFJ Financial Group, 16,245 17,926 24,680 NOK CORPORATION 29,998,468 18,197,414 8,477,497 16,709 Astellas Pharma Inc. 22,391,975 MOTOR CORPORATIONTOYOTA 15,839 14,648 BHDLPI CAPITAL 12,105 28,973,000 BAKING CO., LTD. 9,225 YAMAZAKI 2,055,418 Bank, Ltd.The Hiroshima 9,638,810 10,980 Shionogi & Co., Ltd. 4,500,000THE SHIGA BANK, LTD. 7,337 2,241,544 9,243 5,557,396Seven & i Holdings Co., Ltd 8,100 JX Holdings, Inc. 18,902,400 INC. PACKERS, NIPPON MEAT 16,687,911 7,621 6,591 Isetan Mitsukoshi Holdings Ltd.The Keiyo Bank, Ltd. 11,651,260 7,087 6,308 5,231,791 2,307,002 TRANSPORTING CO.,LTD.FUKUYAMA 4,990,000Kawasaki Heavy Industries, Ltd. 10,087,304 5,189,767 5,767 HISAMITSU PHARMACEUTICAL 5,985 5,670 INC. CO., 10,251,645 5,244 4,539 Fuji Heavy Industries Ltd. 17,338,999 5,044 The Iyo Bank, Ltd. 12,619,128 Bank, Ltd.The Juroku 5,259 Keio Corporation 4,386 5,009 Hokuyo Holdings, Inc.Sapporo 5,649,540 10,866,480 12,338,080 3,756 5,016,421 3,314 3,516 5,809,421 3,677 3,444 The number of companies and carrying amount on the balance and carrying amount on the balance The number of companies held for purposes other than are sheet in which equity investments investment pure 50 shares Maritima Seguros S.A. Universal SompoGeneralInsuranceCompanyLimited Hitachi CapitalInsuranceCorporation SOMPO JAPAN NIPPONKOA ASSETMANAGEMENTCO.,LTD. (Investment advisoryserviceandfundtrustmanagementservice) Healthcare Frontier JapanInc.(Consultingserviceregarding health andcare suchasprevention ofdisease) Sompo JapanDCSecuritiesInc.(Defi ned contributionpensionplanbusinessandfundsalesbusiness) Sompo JapanDIYLifeInsuranceCO.,LTD. NKSJ HimawariLifeInsurance,Inc. Yasuda Seguros S.A. NIPPONKOA InsuranceCompany(Asia)Limited Sompo JapanInsurance(HongKong)CompanyLimited NIPPONKOA InsuranceCompany(China)Limited Sompo JapanInsurance(China)Co.,Ltd. Berjaya SompoInsuranceBerhad Tenet InsuranceCompanyLimited Sompo JapanInsurance(Singapore) Pte.Ltd. Sompo JapanAsiaHoldingsPte.Ltd. Sompo JapanSigortaAnonimSirketi Nippon InsuranceCompanyofEurope Limited NIPPONKOA ManagementServices(Europe) Limited NIPPONKOA InsuranceCompany(Europe) Limited Sompo JapanInsuranceCompanyofEurope Limited Sompo JapanInsuranceCompanyofAmerica SAISON AUTOMOBILEANDFIREINSURANCECOMPANY, LIMITED Sonpo 24InsuranceCompanyLimited NIPPONKOA InsuranceCompany, Limited Sompo JapanInsuranceInc. : Consolidatedsubsidiary ★ : Affi liate accountedforundertheequitymethod y insurance Consolidated About Message from Interview with Review of Management The NKSJ Group’s Corporate Financial Highlights the NKSJ Group the Management the President Operations Structure Approach to CSR Financial Section Information

133 NKSJ Oct. 2011

Himawari Life

NKSJ Holdings Holdings NKSJ Apr. 2010 Apr.

NKSJ Holdings, Inc. Jul. 2002 Jul. 2002 Apr. 2001 Apr. 2001 Nipponkoa Himawari Life Sompo Japan Sompo Japan Nipponkoa Life Jan. 2001 Himawari Life Yasuda Kasai Koa Apr. 1954 Fire & Marine INA Jan. 1997 Himawari Life Taiyo Feb. 1951 Aug. 1996 Transit & Casualty Koa Life Aug. 1996 Aug. 1996 Fire & Marine Nippon Oct. 1944 Partner Life Nippon Fire Dai-ichi Property Mar. 1944 Fire & Marine Koa Marine, Fire & Jul. 1981 INA Life Yasuda Feb. 1944 Nissan Jun. 1937 Fire & Marine Taisei Apr. 1920 Fire & Marine Fire & Marine Dec. 1931 Amasaki Marine & Fire Sompo Japan and Nipponkoa Insurance agreed to establish a joint holding company to integrate their businesses. to establish a joint holding company Insurance agreed Sompo Japan and Nipponkoa ratio, company exchange the share on the business integration that set out an agreement The two companies signed of the joint holding company. ce location, and corporate governance structure name, head offi signed a business integration agreement. and exchange agreement up a share The two companies drew established. NKSJ Holdings, Inc., was Securities Exchange (First Section). Stock Exchange (First Section) and the Osaka on the Tokyo NKSJ Holdings was listed making P&C insurance company, Ltd, a Singapore Insurance Company in Tenet 100% of shares Sompo Japan acquired Holdings. a consolidated subsidiary of NKSJ Tenet merged into Sompo Japan Ltd. were Management Co., Ltd. and ZEST Asset Management Sompo Japan Asset Co., Ltd. Nipponkoa Asset Management Japan Risk Management, Inc. which was then operations to Sompo its relevant N.K. Risk Consulting Co., Ltd. transfered to NKSJ Risk Management, Inc. renamed making Fiba Sigorta a a P&C insurance company in Turkey, 99.07% of Fiba Sigorta Anonim Sirketi, Sompo Japan acquired company name was changed to Sompo Japan Sigorta A.S. in February 2011.consolidated subsidiary of NKSJ Holdings. The merged into NKSJ Systems, Inc. Systems, Limited were Sompo Japan System Solutions Inc. and N.K. into NKSJ Business merged Nipponkoa Business Services, Co., Ltd. were Sompo Japan Information Services Inc. and Services, Inc. of Berjaya Sompo Insurance Berhad, through shares an additional 40% of the issued ordinary Sompo Japan acquired Berjaya Sompo a consolidated subsidiary of NKSJ Holdings and bringing Sompo Japan Asia Holdings Pte. Ltd., making our stake to 70% ownership. merged into NKSJ Limited were and Nipponkoa Life Insurance Company, Sompo Japan Himawari Life Insurance Co., Ltd. Himawari Life Insurance, Inc. the assistance services business. Prime Assistance Inc. was established to enter May 1920 May 1911 Jun. 1919 Aug. 1921 Shinkoku Tatsuuma Taihoku Fire Marine & Fire Marine & Fire & Boiler Apr. 1918 Aug. 1908 July October May October November June October Nippon Accident First Engine Mar. 1896 Sep. 1893 Chugai Marine Jul. 1887 May 1892 Nippon Marine Imperial Marine Tokyo Fire Nippon Fire 2009 March 2010 April 2011 April 2012 April NKSJ History NKSJ Corporate The NKSJ Group’s Management Review of Interview with Message from About Consolidated Information Financial Section Approach to CSR Structure Operations the President the Management the NKSJ Group Financial Highlights 134 (As ofApril1,2012) * OnlyratingscommissionedbytheGroup are shown. Listed beloware credit ratingsforNKSJGroup companiesasofJuly1,2012.* * AsofMarch 31,2012 Head offi Capital: Established: Company name: Independent auditors: URL: Employees*: Business activities: President andExecutiveOffi Representative Director, Chairman andExecutiveOffi Representative Director, Corporate Data Rating InformationforNKSJGroup Companies C A——A — — — — — AA- — — — A AA- A+ — AA A+ AA- A+ A1 A.M. Best JCR A+ R&I Moody’s Standard &Poor’s NKSJ Holdings, Inc. http://www.nksj-hd.com/ aigaec op aa ipno KJHmwr ieSaisonAutomobile&Fire NKSJHimawariLife Nipponkoa SompoJapan Rating agency 100billionyen ce:

April1,2010 245 NKSJHoldings,Inc.

Ernst &Young Ernst ShinNihonLLC cer: cer:

MasayaFutamiya Business Law, andotheroperationsincidentalthereto. other companiescontrolled assubsidiariespursuanttotheInsurance Management ofP&Cinsurancecompanies,lifeand Kengo Sakurada Telephone: 03-3349-3000(operator) Shinjuku-ku, Tokyo, Japan160-8338 26-1, Nishi-Shinjuku1-chome, E-mail:[email protected] ShinichiHara,Investor Relations,CorporatePlanningDepartment For furtherinformationpleasecontact Preface

Group Vision As part of our effort to build a globally competitive organization, we aim to establish our position among customers as the most highly evaluated service company. Contents

26-1, Nishi-Shinjuku 1-chome, Shinjuku-ku, Tokyo, 160-8338, Japan ANNUAL REPORT http://www.nksj-hd.com/ 2012

(99NH5136) 202466 Ver3.00 NK:E7-19-0187 Printed in Japan