May 29, 2003 Mitsui Sumitomo Insurance Group Financial Targets Set For Medium-Term Strategic Business Plan "MS WAVE II" Mitsui Sumitomo Insurance Co., Ltd. (MSI / President, Hiroyuki Uemura) formulated the medium-term strategic business plan, "MS WAVE II" for fiscal 2003 and 2004 in April 2003. We have finished a financial projection that represents the strategic objectives set in the plan as below. Note: When the summary of the plan was announced on April 14 beforehand, a specific financial projection was suspended, awaiting finalizing settlement of accounts for fiscal 2002, and now we hereby announce the projection, which has been formulated based on these results. <Financial Targets set in MS WAVE II> (Notes) *1. Hypothetical net income of Mitsui Sumitomo Kirameki Life Insurance Co., Ltd before extra reserve for Net level premium method of valuation provided   2. The consolidated net income does not reconcile with the sum of those from the businesses because of partial double counting in the overseas and financial services business, where each net income stated above is the sum of that at the subsidiaries in charge of relevant business and portion of net income corresponding to relevant business at the parent company. [Major Targets Set and Background] 1. Consolidation   At the non-life insurance companies in Japan, non-life insurance business account largely for revenues. We, MSI, started "diversification of sources of revenues" ahead of the peers by expanding our business dynamically into five areas such as "non-life insurance," "life insurance" and "overseas" businesses. And now we are aiming at sustainable growth under our consolidation-oriented management. 2. Non-life Insurance Business   To move toward realization of "becoming No.1 in total corporate group power," we, MSI, have focused on "consolidated net premiums written from non-life insurance " as a key benchmark to measure it by size, and will strive to achieve it. Specifically speaking, we are aiming at "No.2 in consolidated net premiums from non-life insurance, including those from overseas" among the Japanese peers by increasing 64 billion yen in the net premiums compared to fiscal 2002 through expansion of the overseas business in addition to reinforcement in the domestic business.   (1) Net Premiums Written   We will also reinforce the non-life insurance business steadily in Japan for realization of "No.2 in consolidated net premiums written." In the midst of harsh circumstances under the lingering deflation, we will allocate management resources concentratedly to retail marketing and promote bankassurance sales and marketing of our new "third-sector" products. By these actions, we will increase premium income by 1.9% p.a. on an annual average, and become "No.1 in increasing ratio of net premiums written from domestic non-life insurance." (2) Combined Ratio   After consideration of possible natural disasters into loss ratio, we will make further efforts to decrease expense ratio under the 34%-level, following the achievement of 35.3% for fiscal 2002 down from 37.3% for fiscal 2000, and achieve our target, "No.1 combined ratio" in our industry. (3) Net Income   Although the market conditions remains difficult for asset investment, we will extend our record of "No.1 in the rate of investment return" for eight straight years, and drive ahead toward the goal of net income of the 50-billion-yen level on the wheels of premiums and investments. Note: We marked about 32.4 billion yen in net income for fiscal 2002 3. Overseas Business   We, MSI, are aiming further expansion in Asia where we are at the top place among the Japanese peers in both size of premium income and office network. And simultaneously, we will deploy resources strategically, focusing on China, India and Korea. At the reinsurance subsidiaries overseas, we will expand reinsurance activities for more premiums from acceptances. Totaling these revenues, the overseas business will account for about 9% of the planned overall net premiums written compared to 7.5% for fiscal 2002 and achieve the net income of 6.6 billion yen. 4. Life Insurance Business   Through reinforcing the sales force at Mitsui Sumitomo Kirameki Life Insurance Co., Ltd. and further promotion of our two core items, "Shunyu Hosho" income protection policy and "MS Shushin" whole life insurance, we will add a net increase of 1,900 billion yen in amount in-force to the basis of fiscal 2002. By reaching it, we will achieve "No.2 in the amount of life insuance in-force among subsidiaries of non-life insurers." Mitsui Sumitomo CitiInsurance Life Insurance Co., Ltd. ("MSICiti") will continue to offer its innovative products of variable annuity, and expand its sales channels, extending its well-organized support to these channels. MSICiti will build a solid basis in the rapidly growing variable annuity market on the foundation of these activities. 5. Financial Services and Risk-related Businesses   While, in the financial services business, we will aggressively develop a business model to employ our high credit rating and highly advanced financial technology, we will strengthen our operations such as risk management service, long-term and medical care related services, emergency assistance, and appraisal. We are aiming at realizing an adequate scale of these businesses to contribute to consolidated results. Appendix: summary of "MS WAVE II"