Brief Explanation of FY2010 Financial Results <Summary of FY2010 - PDF document

Brief Explanation of FY2010 Financial Results <Summary of FY2010 Financial Results> 1. Consolidated Results of Tokio Marine Holdings (References: "Supplemental material for FY2010 results conference call") Ordinary Income - Net premiums written: ¥2,272.1 billion, down ¥20.7 billion or 0.9% YoY Tokio Marine & Nichido and Nisshin Fire recorded premium increases Meanwhile, premiums from overseas subsidiaries declined overall on a consolidated basis, primarily due to the impact from the appreciation of the yen (premiums increased on a local currency basis) - Life insurance premiums: ¥405.3 billion, down ¥59.4 billion or 12.8% YoY Insurance premiums and other of Tokio Marine & Nichido Life: Steady growth in policies in force raised insurance premiums by ¥18.6 billion or 4.1% YoY Insurance premiums and other of Tokio Marine & Nichido Financial Life: As a result of narrowing down of its product line in consideration of the current financial market environment, insurance premiums and other declined by ¥68.9 billion or 37.8% YoY International life insurance business: Premiums increased supported by growth in Asian life entities (References: Non-consolidated life results do not add up to the consolidated results of life operations due to the difference in accounting format between life and non-life operations; the consolidated results are shown in the non-life format) - Insurance premiums of International insurance business (total of life and non-life)*: ¥526.5 billion, down ¥17.5 billion or 3.2% YoY, strongly affected by the appreciation of the yen Excluding the effects of the strong yen, premiums increased by approximately 8% YoY on a local currency basis * Result for the overall International insurance business, including foreign branches of Tokio Marine & Nichido, equity method investees and non-consolidated companies Changes by region: (Please refer to the table provided below) Philadelphia Insurance Companies: A decrease of approximately 7% YoY, due to the appreciation of the yen. Premiums continued to grow by about 5% YoY on a local currency basis despite the flat growth in the overall U.S. P&C market Kiln: A decrease of approximately 4% YoY, due to the appreciation of the yen. Excluding the effects of the strong yen, premiums increased by approximately 11% YoY owing to an expansion in underwriting by utilizing the capacity of the 100% owned Lloyd's Syndicate by the Tokio Marine Group Reinsurance business (excluding Kiln): Premiums decreased approximately 8% YoY, due to the effects of the appreciation of the yen. Excluding the effects of the strong yen, premiums increased by about 5% YoY supported by the initiative to expand new business in the U.S. Non-life insurance businesses in Asia and other: Premiums increased by

approximately 4% YoY despite the effects of the strong yen North America (excluding Philadelphia) and European subsidiaries: Premiums decreased approximately 24% and 15% YoY respectively, due to the lower rate levels caused by increased competition especially in Japanese corporate businesses as well as the effects of the strong yen Life insurance business: Premiums surged approximately 36% YoY, supported by the launch of the new products and enhancement of sales network in the Asian life insurance entities Ordinary Profit - Ordinary profit: ¥126.5 billion, down ¥76.8 billion or 37.8% YoY The decrease was primarily due to a significant increase in natural catastrophe losses relating to the Great East Japan Earthquake in March 2011 and the New Zealand Earthquake in February 2011 Incurred losses relating to the Great East Japan Earthquake: ¥91.5 billion posted in FY2010 consolidated results in total (Total of domestic and international non-life insurance, excluding residential earthquake insurance which has no impact on P/L.) Adjustment in consolidated results, relating to natural disasters at overseas subsidiaries: Loss of ¥33.4 billion relating to the New Zealand Earthquake in February 2011 and the Great East Japan Earthquake in March 2011 was adjusted to be recognized in the FY2010 consolidated results in accordance with the financial accounting principles, despite the accounting period for overseas subsidiaries covers from January to December Net Income - Net income: ¥71.9 billion, down ¥56.4 billion or 44.0% YoY The factors driving the decreases were mostly the same as those that led to lower ordinary profit 2. Non-Consolidated Results of Tokio Marine & Nichido (Reference: "Information about major subsidiaries' business results," page 2) - Net premiums written: ¥1,742.7 billion, up ¥6.6 billion or 0.4% YoY Fire insurance: Premiums decreased by 4.8% YoY Premiums originated from domestic; due to the reduction in conditions and the reversal effect caused by early renewals in the midterm of contracts in the previous fiscal year for major contracts Premiums from abroad; due to the appreciation of the yen and the sluggish U.S. economy Personal accident insurance: Premiums increased by 2.3% YoY Rate revisions for overseas travel insurance and the increased number of travelers The increased sales in medical lines of Super-Insurance Auto insurance: Premiums increased by 0.6% YoY Primarily due to the higher unit price caused by rate revisions in July 2009 and July 2010 - Net claims paid: ¥1,094.2 billion, down ¥2.2 billion YoY

Claims paid related to the Great East Japan Earthquake in FY2010: ¥0.2 billion - Net loss ratio: 67.5%, down 0.4 point YoY Fire insurance: 41.5%, down 0.9 points YoY, mainly due to the reversal effect of the large claim payments for typhoon No. 18 (Typhoon Megi) in the previous fiscal year Auto insurance: 71.0%, up 1.3 points YoY, owing primarily to the increase in claim payments associated with the rise in frequency of accidents, covered by endorsements for damage to own vehicle and for property damage liability - Business expenses and net expense ratio: Agency commissions and brokerage: ¥300.9 billion, down ¥3.5 billion YoY Decline in average agency commission points Operating and general administrative expenses on underwriting: ¥282.5 billion, down ¥3.4 billion YoY Personnel expenses: Up ¥2.5 billion YoY, due to the reversal effect of the results in the temporary decrease in previous fiscal year Non-Personnel expenses: Down ¥5.4 billion YoY, despite an increase in the expense for the Business Renovation Project, owing to the declines in other IT- related expenses and printing expenses as a result of company-wide cost-down efforts Total expenses: ¥583.4 billion, down ¥7.0 billion YoY Net expense ratio: 33.5%, an improvement of 0.5 points YoY - Provision for outstanding claims (private insurance basis): An increase in provision of ¥62.6 billion, up ¥83.8 billion YoY Despite of decline in funding of foreign currency-denominated provision for outstanding claims due to the appreciation of the yen, Almost all incurred losses for private insurance lines relating to the Great East Japan Earthquake were posted on the provision for outstanding claims Total net losses of natural disasters: ¥104.0 billion, up ¥81.1 billion YoY for all lines Of which, total incurred losses relating to the Great East Japan Earthquake: ¥100.2 billion for all lines, excluding residential earthquake insurance: ¥81.9 billion, almost all of which were posted on the provision for outstanding claims Current situation of auto insurance: The number of reported claims (i.e. frequency) increased due to the record heavy snowfalls in winter, despite a slight decrease in Q3 after the steep increase in Q2. Reported claims declined in March on one month YoY due to decline in traffic affected by the earthquake. The full year result of auto insurance was lower than the projection as of 1H end due to increases in accidents due to heavy snowfalls in winter. - Provision for underwriting reserves: A decrease in the provision of ¥150.5 billion, up ¥10.0 billion YoY Of which, general underwriting reserve (private insurance basis): A decrease in the provision of ¥5.9 billion, down ¥1.7 billion YoY Decline in funding of provision for fire insurance due to the reversal effect from posting large number of long-term contracts in the previous fiscal year, and a decline in premiums