Highlights of the financial results for Highlights of the financial - PowerPoint PPT Presentation

Highlights of the financial results for Highlights of the financial results for FY2003 and results forecast for FY2004 FY2003 and results forecast for FY2004 May 31, 2004 ・ Amounts shown herein are basically rounded off. ・ ・ ・ ・ Amounts related to FY2001 are the total of Sumitomo Marine’s 1st half and Mitsui Sumitomo’s full year. ・ ・ ・ ・ Amounts related to FY2000 and before are the total of Sumitomo Marine and Mitsui Marine. ・ ・ ・ ・ Amounts are shown after excluding refundable premium of our original automobile insurance “ ・ “ Modo-rich. ” ” ・ ・ “ “ ” ” 1 1 1 1

Net premiums written Net premiums written (excluding the effect of abolition of reinsurance to government related to CALI * * ) ) (excluding the effect of abolition of reinsurance to government related to CALI *CALI=Compulsory Automobile Liability Insurance * CALI=Compulsory Automobile Liability Insurance Increased by 1.5% from previous year. All lines of insurance except automobile secured premium increase. (bil yen) (%) 1,220 2.5 2.3 1202.6 2.0 1,200 1,175.7 1.5 1,184.5 1,180 1.0 1.5 1.5 1.5 1.5 1.2 1,161.7 0.5 1,160 0.8 0.0 1,135.7 1,140 -0.5 -1.0 1,120 -1.5 -1.6 1,100 -2.0 1999 2000 2001 2002 2003 Net premiums written Increase rate 2 2 2 2

* Net loss ratio * Net loss ratio (excluding the effect of abolition of reinsurance to government related to CALI) (excluding the effect of abolition of reinsurance to government related to CALI) Maintained the same level as of FY2002, owing to the effect of premium increase. *Net loss ratio=(Net claims paid+Loss adjustment expenses)/Net premiums written * Net loss ratio=(Net claims paid+Loss adjustment expenses)/Net premiums written (%) 60 58.8 58.4 57.8 57.2 57.2 58 57.2 56 54.8 53.4 54 52 1996 1997 1998 1999 2000 2001 2002 2003 3 3 3 3

Net operating expense ratio* Net operating expense ratio* (excluding the effect of abolition of reinsurance to government related to CALI ） (excluding the effect of abolition of reinsurance to government related to CALI ） Improved vastly by 0.7pt from FY2002 due to reduction in personnel and non-personnel expenses. *Net operating expense ratio=Underwriting expenses/Net premiums written * Net operating expense ratio=Underwriting expenses/Net premiums written (%) 40 39.1 39.0 38.7 39 39.5 38 37.3 37 36.4 36 35.3 34.6 35 34 1996 1997 1998 1999 2000 2001 2002 2003 4 4 4 4

Combined ratio * * Combined ratio (excluding the effect of abolition of reinsurance to government related to CALI) (excluding the effect of abolition of reinsurance to government related to CALI) Improved by 0.7pt from FY2002, due to improvement of net operating expense ratio. *Combined ratio=Net loss ratio + Net operating expense ratio * Combined ratio=Net loss ratio + Net operating expense ratio (%) 98 97.8 95.7 96.3 96 94.2 94 93.5 92.5 92.8 91.8 92 90 1996 1997 1998 1999 2000 2001 2002 2003 5 5 5 5

Underwriting profit Underwriting profit Increased by Yen 45.3bil due mainly to premium increase and improvement of net operating expense ratio. (bil yen) 45.3 50 37.0 40 30 20 10.2 3.3 10 -0.3 0 -10 1999 2000 2001 2002 2003 6 6 6 6

Interest and dividend income Interest and dividend income Gross interest and dividend income decreased by Yen 2.5bil. Net interest and dividend income increased by Yen 3.1bil. (bil yen) (%) 200 3.00 2.92 2.58 2.54 2.37 2.33 154.0 2.50 150 132.7 129.2 116.8 2.00 114.3 88.4 88.4 100 1.50 78.3 78.3 71.2 71.2 65.4 65.4 59.8 59.8 1.00 50 65.6 0.50 54.3 58.0 54.5 51.4 0 0.00 1999 2000 2001 2002 2003 Investment income credited to investment deposits by policyholders Net interest and dividend income Gross interest and dividend income 7 7 7 7 Yield on investment assets (income yield)

Net realized gain and devaluation loss of securities Net realized gain and devaluation loss of securities Net realized gain was Yen 74.6 bil including ETF related profit, devaluation loss decreased to Yen 1.5bil. (bil yen) (yen) 80 74.6 21,000 35.1 32.6 29.9 0 14,000 -1.5 -14.4 -27.1 13,000 -50.3 11,715 11,025 7,973 -80 7,000 2000 2001 2002 2003 Net realized gain Devaluation loss Nikkei 225 8 8 8 8

Extraordinary income / losses Extraordinary income / losses Large amounts of extraordinary loss was due to change in calculation method of underwriting reserve related to Housing Loan Guarantee Insurance and provision for price fluctuation reserves. FY2002 FY2003 Reversal / Provision for Yen 13.9 bil Yen -6.5 bil price fluctuation reserves Additional provision for － － － － Yen -41.1 bil Housing Loan Guarantee Insurance － － － － Yen -7.6 bil Expenses for integration Yen 1.9 bil Yen -2.6 bil Net gain / loss on sales of real estate Yen 0 bil Yen 3.7 bil Reversal of other provisions Yen -5.7 bil Yen -7.3 bil Others Yen 6.3 bil Yen -57.4 bil Extraordinary income / losses total 9 9 9 9

・ ・ Net income Ordinary profit ・ ・ ・ ・ ・ ・ Net income Ordinary profit Ordinary profit was Yen 166.6bil, 249.4% growth due to increase of underwriting profit and net realized gain of securities. Net income was Yen 73.0bil reflecting additional provision for Housing Loan Guarantee Insurance. (bil yen) 180 166.6 120 73.0 75.1 62.6 56.4 47.7 60 32.4 27.1 22.5 23.6 0 1999 2000 2001 2002 2003 Ordinary profit Net income 1 1 1 1 0 0 0 0

Mitsui Sumitomo Kirameki Kirameki Life Insurance Life Insurance Mitsui Sumitomo Record-high amount of new business. Amount of in-force business increased in double digit for two consecutive years. Proforma net income increased by Yen 2.1bil to Yen 3.6bil. Change from the FY2003 previous year(%) 23.6 ％ ％ ％ ％ Yen 1,387.6bil Amount of new business 14.7 ％ ％ ％ ％ Yen 5,779.2bil Amount of in-force business （ The above is total sum of individual insurance and individual annuity ） 8.8 ％ ％ ％ ％ Yen 164.0bil Premiums income Previous year result : Yen 0.01bil Net income Yen 0.09bil Previous year result : Yen 3.6bil Proforma net income* Yen 1.5bil ＊ Hypothetical net income before additional reserve for Net level premium method of valuation provided 1 1 1 1 1 1 1 1 and extraordinary expense related to software development.

Mitsui Sumitomo CitiInsurance CitiInsurance Life Life Mitsui Sumitomo Amount in-force surged up to Yen 477.5bil, or 12 times of previous year. Premiums income expanded powerfully to Yen 423.8bil, or 10 times of previous year. Change from the FY2003 previous year(%) 10.2 times of Yen 389.1 bil Amount of new business previous year Amount of 12.2 times of Yen 477.5 bil in-force business previous year （ The above is individual annuity ） 10.1 times of Premiums income Yen 423.8 bil previous year Previous year result : Yen -3.5 bil Net loss Yen -0.9bil 1 1 1 1 2 2 2 2