| March 27, 2000 |
| Full-scale Alliance and Scheduled Merger of The Sumitomo M&F and Mitsui M&F |
| The Sumitomo Marine & Fire Insurance Co., Ltd. Mitsui Marine & Fire Insurance Co., Ltd. |
| The Sumitomo Marine & Fire Insurance Co., Ltd. (President :
Hiroyuki Uemura) and Mitsui Marine & Fire Insurance Co., Ltd.
(CEO & President: Takeo Inokuchi) have today signed a Basic Agreement
To Merge. Subject to receiving permission from the relevant authorities and the approval of their respective shareholders, the two companies have decided to merge in October 2001, and to enter into a full-scale business alliance immediately, with the synergistic effect expected to present positive results in the early stages. Moreover, the two companies have agreed to engage substantially in integrated operations starting from April 2001, and to make full preparations to gain the confidence of customers. |
OBJECTIVE OF BASIC AGREEMENT Deregulation of products and insurance premiums, coupled with the entrance of foreign companies and players from other industries, is creating increasingly fierce competition for the Japanese nonlife insurance industry. At a time when consumers are demanding a broader spectrum of more sophisticated products, it is imperative that the nonlife insurance industry respond quickly to develop more innovative products and services, and to operate with greater efficiency. It is in the face of these realities that the two companies have resolved to merge as a means of shoring up growth, profitability, and competitiveness with which to meet the expectations of both customers and shareholders. |
BASIC INTEGRATION PLAN The two companies have together made a master plan for the merger, known as the Basic Integration Plan, and together with their subsidiaries and affiliated companies will dedicate their full efforts to bring the plan to fruition. |
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