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We take this opportunity to thank our stakeholders for the consistent support they have shown Mitsui Sumitomo Insurance.

We aim to be the non-life insurance company of choice for all, by earning the trust of our customers through ongoing quality improvement.

Fiscal 2012 was a difficult year for business. Challenges included the ongoing financial crisis in Europe, slowdowns in the economies of emerging countries, and long-term deflation, as well as natural disasters in Japan and elsewhere, which all contributed to stagnation in the global economy. The insurance industry was faced with its own set of issues standing in the way of an optimistic outlook. These issues included a number of natural disasters in various parts of the world and the question of how to improve automobile insurance profitability. However, the economy is starting to show positive signs, driven by improving stock prices toward the end of last year. As well, our earnings are beginning to a hint of light at the end of a long tunnel.

As we face these challenges, we are coming into the final year of our four-year medium-term management plan, MS&AD New Frontier 2013. To reach our targets, we are working to strengthen our sales network, offering high-quality, attractive products and services, while at the same time improving profitability by controlling business expenses. In addition, we plan to build stronger relationships with our clients through even higher levels of service and fair, prompt payment on insurance policies. We believe these initiatives will make our firm the preferred choice in the insurance market.

In January 2013, we announced a functional reorganization of the MS&AD Insurance Group, involving our company and Aioi Nissay Dowa. We believe this reorganization will lead to a new dimension in corporate value, as we maximize the strengths of each company, working towards growth with a new and greater sense of urgency and efficiency. As a result, we will find even greater competitive advantage in Japan and around the world, expanding as a business that brings together its comprehensive strength in offering global insurance and financial services.

As a member of the MS&AD Insurance Group, Mitsui Sumitomo Insurance will push forward in creating a world No. 1 insurance and financial group. At the same time, we intend to do everything possible to contribute to society as an insurance company supporting family happiness and economic growth.

We hope that we can continue to count on your support as we pursue our initiatives.

Mitsui Sumitomo Insurance Company, Limited
Yasuyoshi Karasawa, President, Chief Executive Officer

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