Information Meeting June 10, 2009 Fiscal 2009 First Informational - PDF document

Fiscal 2009 First Information Meeting June 10, 2009

Fiscal 2009 First Informational Meeting Table of Contents Title Page No. Extreme Environmental Changes Originating From Financial Crisis : MSIG’s Response 1 Results for FY2008 2 MSIG (Consolidated) 3 MSI (Non-consolidated) 4 MSI (Non-consolidated) : Premiums and loss ratios by product line 5 MSI (Non-consolidated) : Company expenses and expense ratio 6 MSI (Non-consolidated) : Investment performance 7 MSI’s overseas subsidiaries 8 Life insurance subsidiaries 9 Full-Year Results Forecast for 10 FY2009 MSIG (Consolidated) 11 MSI (Non-consolidated) 12 MSI (Non-consolidated) : Premiums and loss ratios by product line 13 MSI (Non-consolidated) : Company expenses and expense ratio 14 MSI (Non-consolidated) : Investment performance 15 MSI’s overseas subsidiaries 16 Life insurance subsidiaries 17 Strategies for FY2009 18 Capital Management : Improvement of Corporate/Shareholder Value via Growth 19 Strategy Capital Position 20 Approach to Shareholder Return and Share Buyback 21 Medium-Term Management Plan “New Challenge 10” and Targets 22 ＜ Domestic Non-Life Insurance Business (MSI) ＞ Loss and Expense Ratios 23 ＜ Domestic Non-Life Insurance Business (MSI) ＞ Improving the Voluntary Automobile Insurance 24 Loss Ratio ＜ Domestic Non-Life Insurance Business (MSI) ＞ Development of Life Promoters’ Channel 25 ＜ Domestic Non-Life Insurance Business (MSI) ＞ Improvement of Productivity through Sales 26 Innovation and Product Innovation ＜ Domestic Non-Life Insurance Business (MSI) ＞ Status of AUM 27 ＜ Domestic Non-Life Insurance Business (MSI) ＞ Basic Policy of Investment/Risk Management 28 ＜ Overseas Business ＞ Review of FY2008 & Forecast for FY2009 29 ＜ Overseas Business ＞ Building Business Portfolio Supporting Growth 30 ＜ Overseas Business ＞ Major Initiatives for FY2009 : Strategic Regions 31 ＜ Life Insurance Business ＞ Mitsui Sumitomo Kirameki Life Insurance 32 ＜ Life Insurance Business ＞ Mitsui Sumitomo MetLife Insurance 33 ＜ Life Insurance Business ＞ Embedded Value 34 ＜ Risk-related Business ＞ Mitsui Direct General Insurance 35 ＜ Financial Services Business (MSI) ＞ Credit Derivatives 36 ＜ Financial Services Business (MSI) ＞ Reinsurance Ceded from U.S. Monolines 37 Business Combination under 38 Discussion Objectives of Business Combination and Vision of Business Group 39 Image of Business Combination 40

Extreme Environmental Changes Originating from Financial Crisis: MSIG’s Response Response to extreme changes in business environment set in motion by September 2008 financial meltdown Stepping up risk management Stepping up risk management and crisis management Consolidating structure for leap forward = business model reform and crisis management Consolidating structure for leap forward = business model reform in light of financial crisis in light of financial crisis � Concentrating on sales channels with high growth potential … strengthening � Concentrating on sales channels with high growth potential … strengthening Balance sheet reforms Balance sheet reforms Domestic Domestic alliance with Sumitomo Life Insurance alliance with Sumitomo Life Insurance Non-Life Non-Life Though sufficiently capitalized Though sufficiently capitalized Insurance � Improving productivity … sales and product innovations Insurance � Improving productivity … sales and product innovations to maintain sound business to maintain sound business Business Business � Improving the voluntary automobile insurance loss ratio � Improving the voluntary automobile insurance loss ratio operations, MSIG is stepping up operations, MSIG is stepping up risk management and crisis risk management and crisis � MSI Kirameki Life: management in this time of � MSI Kirameki Life: management in this time of extreme economic instability. • New sales structure (increase in sales facilities and personnel) extreme economic instability. • New sales structure (increase in sales facilities and personnel) Life Life • Change in product sales strategy • Change in product sales strategy • Reviewing investment • Reviewing investment Insurance Insurance (emphasis on both death benefit products and medical care products for (emphasis on both death benefit products and medical care products for management policy management policy Business individuals) Business individuals) � MSI MetLife: Shift of emphasis from variable annuities to fixed annuities in � MSI MetLife: Shift of emphasis from variable annuities to fixed annuities in • Minimizing risk of share • Minimizing risk of share response to customers’ needs response to customers’ needs price fluctuation price fluctuation (Downsizing of strategic (Downsizing of strategic stock-holdings in the stock-holdings in the � Concentrating on local business in Asia and Europe � Concentrating on local business in Asia and Europe Overseas Overseas medium term in light of medium term in light of � Orienting towards growth and risk leveling driven by business portfolio � Orienting towards growth and risk leveling driven by business portfolio Business Business financial environment) financial environment) combining non-life insurance and life insurance 最近の環境変化 combining non-life insurance and life insurance • Verifying financial • Verifying financial � Slimming personnel in the domestic non-life insurance business (effects of soundness � Slimming personnel in the domestic non-life insurance business (effects of soundness Group Group sales and product innovations) and reallocating human resources to growth sales and product innovations) and reallocating human resources to growth (Stepping up monitoring) (Stepping up monitoring) as a Whole as a Whole areas, thereby facilitating business model reform areas, thereby facilitating business model reform 1 Environmental Changes FY2007 FY2008 FY2008 Actual Initial Forecast Actual Nikkei average stock price (at year end) ¥12,526 ¥13,500 ¥8,109 Yen-dollar exchange rate (at year end) ¥110.19 ¥100 ¥98.23 Yen-euro exchange rate (at year end) ¥158.19 ¥160 ¥129.84 10 year-JGB yield (at year end) 1.28% 1.50% 1.35% -3.5%( Full-year ) Real GDP growth rate 1.8% N.A. -15.2%(Q4 ） ＜ Q4 ＞ ＜ Q4 ＞ Number of new automobiles sold 1,610 thousand N.A. 1,230 thousand (YoY Growth rate) (-23.7%) ＜ Q4 ＞ ＜ Q4 ＞ Housing construction starts 254 thousand N.A. 200 thousand (YoY Growth rate) (-21.4%) 1

Mitsui Sumitomo Insurance Group Holdings, Inc. Results for FY2008 Fiscal 2008 was the first accounting term since the establishment of the Company, so consolidated figures for the previous term refer to MSI (on a consolidated basis). In the presentation, the following abbreviations are used for company names ・ MSI (= Mitsui Sumitomo Insurance Co., Ltd.) ・ Mitsui Direct General (= Mitsui Direct General Insurance Co., Ltd.) ・ MSI Kirameki Life (= Mitsui Sumitomo Kirameki Life Insurance Co., Ltd.) ・ MSI MetLife (= Mitsui Sumitomo MetLife Insurance Co., Ltd.) Forward-looking statement Forward-looking statement This presentation contains future plans, strategies and earnings forecasts for MSI Group Holdings and Group companies. They are based on information available to the Group at the present time. Investors are advised that actual results may differ substantially from our forecasts, for various reasons. Actual performance could be adversely affected by (1) economic trends surrounding our business, (2) fierce competition within the insurance sector, (3) exchange-rate fluctuations, and (4) changes in tax and other regulatory systems. 2