Press Release
(English translation)
August 11, 2004
Summary of Consolidated Results of Operations
for the First Quarter Ended June 30, 2004
in the Fiscal Year Ending March 31, 2005

1. Basic principles of preparation for quarterly results of operations
  There are certain differences in recognition of net premiums written between the accounting method applied to the reporting quarter and the one applied to the previous year-end;
The primary difference is that, the premiums of reinsurance contracts are recognized on the transaction basis in the quarterly periods, while the effective basis is adopted in the interim and fiscal periods.
The results of the first quarter for fiscal 2003 included premiums on the "forward dated" policies which had been written in the reporting quarter but would become valid later after the quarter elapsed, whereas the results of the first quarter for the current period exclude such premiums.

2. Summarized business results for the First Quarter in FY2004
(Apr.1,2004 - Jun.30,2004)
Note: The amounts which respectively represent less than the relevant unit are discarded, and the ratios are rounded to the nearest one-tenth, with five one-hundredths or more considered to be a full tenth. The same applies hereunder.
(1) Net Premiums Written
 
 
First quarter
ended June 30, 2004
First quarter
ended June 30, 2003
    millions of yen     %
* ( 349,305 )
349,908
 * ( 1.5 )
2.5
* ( 359,439 )
356,882		 * ( 10.1 )
9.9
(cf.)For the year ended
March 31, 2004
* ( 1,382,517)
1,379,119
Note: 1. The figures stated in percentage represent increased ratio of net premiums written compared to the same period in the previous fiscal year.
  2. *The upper line of net premiums written in parentheses exclude of Good Result Return premiums ("GRR premiums") of "ModoRich," for the purpose of easy comparison with other non-life insurance companies. "ModoRich" is a unique automobile insurance product developed by the Company which contains a special clause of premium adjustment and refund at maturity.
  3. The figures stated in percentage of the first quarter ended June 30, 2004 are computed based on the premiums for the first quarter of the preceding fiscal year reflecting the newly adopted method (Including GRR premiums 341,437 million yen, excluding GRR premiums 344,051 million yen).
   
  For the first quarter of fiscal 2004, net premiums written increased to 349,305 million yen by 1.5% compared to the same period of fiscal 2003, after adjusting the GRR premiums. At the Company, the premium revenues rose in every lines except Voluntary Automobile, and also the consolidated subsidiaries, e.g. overseas subsidiaries in Europe and reinsurance subsidiaries, earned larger revenues.
   
(2) Material events affecting the group's financial conditions and results in the quarter
  There was nothing applicable here.

3. Forecast business results for the fiscal year ending March 2005

There are no revisions to the business results forecasts for the fiscal year ending March 31, 2005 at this point of time.

excluding GRR premiums of automobile insurance "ModoRich" Consolidated

Premiums Received and Claims Paid by Lines of Insurance

Direct Premiums Written by Lines of Insurance (including deposit premiums from policyholders)
(millions of yen)
  First quarter
(Jun. 30, 2003)		 First quarter
(Jun. 30, 2004)		 (cf) FY2003
(Mar. 31, 2004)
Lines of Insurance Amount Change (%) Share (%) * Amount Change (%) * Share (%) Amount Change (%) Share (%)
Amount
Fire 72,469 -2.8 14.9 70,233 71,500 1.8 16.4 289,469 5.9 16.5
Marine 19,183 5.3 4.0 19,002 20,659 8.7 4.7 76,346 9.5 4.4
Personal Accident 110,454 29.4 22.8 109,650 85,651 -21.9 19.6 359,217 2.0 20.5
Voluntary Automobile 162,428 -0.0 33.5 152,411 150,262 -1.4 34.4 589,254 -0.8 33.7
CALI 55,666 1.1 11.5 46,435 47,065 1.4 10.8 183,855 1.3 10.5
Other 64,751 16.4 13.3 63,808 61,844 -3.1 14.1 251,407 8.9 14.4
Total
(Deposit premiums from policyholders)		 484,953
(92,470) 		7.5
(28.4) 		100.0
(19.1) 		461,541
(91,894) 		436,983
(63,001) 		-5.3
(-31.4) 		100.0
(14.4) 		1,749,550
(300,819) 		2.8
(-1.9) 		100.0
(17.2)

Net Premiums by Lines of Insurance
(millions of yen)
  First quarter
(Jun. 30, 2003)		 First quarter
(Jun. 30, 2004)		 (cf) FY2003
(Mar. 31, 2004)
Lines of Insurance Amount Change (%) Share (%) * Amount Change (%)* Share (%) Amount Change (%) Share (%)
Amount
Fire 45,065 -0.5 12.5 43,211 48,396 12.0 13.9 187,209 9.6 13.5
Marine 13,985 12.4 3.9 13,835 16,515 19.4 4.7 64,671 12.5 4.7
Personal Accident 34,445 2.5 9.6 34,030 34,424 1.2 9.8 124,917 1.3 9.0
Voluntary Automobile 161,679 -0.0 45.0 151,679 149,716 -1.3 42.9 587,052 -1.0 42.5
CALI 45,858 103.0 12.8 43,775 43,963 0.4 12.6 194,018 17.6 14.0
Other 58,405 14.6 16.2 57,519 56,287 -2.1 16.1 224,647 7.3 16.3
Total 359,439 10.1 100.0 344,051 349,305 1.5 100.0 1,382,517 4.8 100.0

(cf) Figures after excluding the effect of abolition of reinsurance to government related to CALI.
CALI 26,170 15.9   24,087 24,319 1.0   103,563 4.5  
Total 339,751 4.0 324,363 329,661 1.6 1,292,061 3.1

Net Claims Paid by Lines of Insurance
(millions of yen)
  First quarter
(Jun. 30, 2003)		 First quarter
(Jun. 30, 2004)		 (cf) FY2003
(Mar. 31, 2004)
Lines of Insurance Amount Change (%) Share (%)   Amount Change (%) Share (%) Amount Change (%) Share (%)
Fire 14,930 15.8 9.5   13,984 -6.3 8.6 60,519 6.1 8.9
Marine 7,263 45.2 4.6 5,811 -20.0 3.6 28,450 10.0 4.2
Personal Accident 12,430 6.2 7.9 12,832 3.2 7.8 51,486 1.7 7.6
Voluntary Automobile 81,417 1.9 51.7 80,522 -1.1 49.2 341,168 0.8 50.1
CALI 17,380 19.8 11.0 25,187 44.9 15.4 82,146 34.8 12.1
Other 24,026 1.6 15.3 25,186 4.8 15.4 116,499 2.7 17.1
Total 157,448 6.7 100.0 163,524 3.9 100.0 680,271 5.2 100.0

(cf) Figures after excluding the effect of abolition of reinsurance to government related to CALI.
CALI 15,179 4.6     15,108 -0.5   61,403 2.1  
Total 155,247 5.2 153,445 -1.2 659,528 2.1


Note:1. The amounts stated above are before inter-line eliminations.
2. GRR premiums of the automobile insurance "ModoRich" excluded from "Direct Premiums Written" and "Net Premiums" are as below;
 
First Quarter ended June 30, 2003 -2,557 million yen  
(The figures based on premiums excluding the "forward dated" policies. -2,613 million yen )
First Quarter ended June 30, 2004 602 million yen  
For the year ended March 31, 2004 -3,397 million yen  
3. * The figures are computed based on premiums excluding the "forward dated" policies.

GRR premium: Good Result Return premium; see also 2 (1) Note 2 on page 1.
CALI: compulsory automobile liability insurance.

Consolidated
Securities
(millions of yen)
  First quarter
(as of June 30, 2003) 		First quarter
(as of June 30, 2004) 		(cf) FY 2003
(as of March 31, 2004)
Item Acquisition cost Fair value Difference Acquisition cost Fair value Difference Acquisition cost Fair value Difference
Domestic Bonds 2,091,314 2,183,599 92,285 2,097,193 2,120,048 22,854 2,222,893 2,270,752 47,859
Domestic Stocks 850,683 1,537,382 686,698 786,888 1,896,054 1,109,165 779,724 1,844,328 1,064,603
Foreign Securities 828,572 938,408 109,835 874,918 923,543 48,625 869,868 925,945 56,077
Others 71,701 75,608 3,907 65,713 71,359 5,645 68,731 73,754 5,022
Total 3,842,271 4,734,999 892,727 3,824,714 5,011,005 1,186,291 3,941,218 5,114,781 1,173,563

Note:
 1. The table set above is a summary of the marketable "other securities", which are not classified as "securities for trading purpose", "securities held to maturity" or "stocks of subsidiaries and affiliates".
2. The acquisition cost as of June 30, 2003 is before amortization/accumulation and impairment, and that as of June 30, 2004 is after amortization/accumulation and before impairment, whereas that as of March 31, 2004 is after such adjustments have been made.
3. A fair value of securities is a market price quoted on the end of each accounting period, or otherwise assumed similarly based on the market and other relevant conditions at that point.

Consolidated
Derivatives Transactions
(millions of yen)
Type Transaction First quarter
(as of June 30, 2003) 		First quarter
(as of June 30, 2004) 		(cf)FY 2003
(as of March 31, 2004)
Contract
amount		 Fair value Unrealized
gain / loss		 Contract
amount		 Fair value Unrealized
gain / loss		 Contract
amount		 Fair value Unrealized
gain / loss
Currencies Forward foreign exchange                  
Sold 18,828 18,968 -139 18,542 18,927 -385 18,720 18,688 31
Bought 5,110 5,125 15 215 215 0 - - -
Options                  
Sold - - - 1,063 32 3 1,055 36 -0
(-)     (36)     (35)98,095   -414
Bought - - - 1,055 32 -7 (532) 118  
(-)     (39)          
Interest
rates 		Options                  
Sold 9,500 15 213 24,175 98 149 10,200 46 181
(228)     (248)     (227)    
Bought 3,500 17 -181 3,500 47 -150 3,500 49 -148
(198)     (198)     (198)    
Swaps 50,022 215 215 53,241 2 2 44,929 99 99
Stocks Options on stock price index                  
Sold 877 28 1 - - - - - -
(30)     (-)     (-)    
Bought - - - 60 0 0 12 0 -0
(-)     (0)     (0)    
Bonds OTC options 7,830 103 -79 - - - - - -
Sold (24)     (-)     (-)    
Credit Credit derivatives                  
Sold 575,827 -5,455 -5,455 448,106 276 276 429,637 37 37
Bought 22,762 52 52 15,000 -87 -87 15,000 -93 -93
Others Weather derivatives                  
Sold 16 19 10 1,494 -182 -199 773 101 -135
(30)     (27)     (31)    
Bought 11 16 -3 1,354 220 202 678 172 -149
(19)     (17)     (22)    
others 9 51 51 - -77 -77 - -193 -193
Natural disaster derivatives                  
Sold 270 9 4 1,000 7 12 1,060 10 11
(14)     (19)     (22)    
Other                  
Sold 0 1 1 - - - 10 - 3
(3)     (-)     (3)    
Total 694,566 19,171 -5,293 568,809 19,514 -260 623,671 19,075 -470

Note:
 1. The figures stated in parenthesis represent the option premiums.
2. Those contracts which are eligible for the hedging accounting are excluded from the valuation table shown above.

The figures of Mitsui Sumitomo Kirameki Life Insurance, consolidated subsidiary. Consolidated

Life Insurance

1.Policies in Force
(millions of yen)
  First quarter
(as of June 30, 2003) 		First quarter
(as of June 30, 2004) 		(cf)FY 2003
(as of March 31, 2004)
Number(Thousands) Amount Number(Thousands) Amount Number(Thousands) Amount
    Changes(%)   Changes(%)   Changes(%)   Changes(%)   Changes(%)   Changes(%)
Individual insurance 688 10.0 5,056,234 12.6 733 6.5 5,787,079 14.5 724 7.2 5,588,682 12.8
Individual annuities 22 51.7 99,716 47.3 46 107.8 225,339 126.0 40 123.5 190,533 134.8
Group insurance - - 2,050,580 -5.7 - - 2,366,995 15.4 - - 2,310,200 15.6
Group annuities - - - - - - - - - - - -

Note: 1.The amounts stated above are before inter-line eliminations.
  2.Policy amount in force of individual annuities is equal to (a) the funds to be held at the time annuity payments are to commence for an annuity for which payment has not yet commenced, and (b) the amount of policy reserve for an annuity for which payments have commenced.

2.New policies
(millions of yen)
  First quarter
(Jun. 30, 2003) 		First quarter
(Jun. 30, 2004) 		(cf) FY2003
(Mar. 31, 2004)
  Number
(Thousands)		 Amount Number
(Thousands)		 Amount Number
(Thousands)		 Amount
  New business Net increase by conversion   New business Net increase by conversion   New business Net increase by conversion
Individual insurance 29 251,978 251,978 - 26 352,029 352,029 - 122 1,269,568 1,269,568 -
Individual annuities 4 20,339 20,339 - 6 37,842 37,842 - 24 118,054 118,054 -
Group insurance - 5,797 5,797   - 17,540 17,540   - 40,450 40,450  
Group annuities - - -   - - -   - - -  

Note: 1.The amounts stated above are before inter-line eliminations.
  2.Amount of new policies for individual annuities is equal to the funds to be held at the time annuity payments are to commence.

excluding GRR premiums of automobile insurance "ModoRich" Non-consolidated

Premiums Received and Claims Paid by Lines of Insurance

Direct Premiums Written by Lines of Insurance (including deposit premiums from policyholders)
(millions of yen)
  First quarter
(Jun. 30, 2003)		 First quarter
(Jun. 30, 2004)		 (cf) FY2003
(Mar. 31, 2004)
Lines of Insurance Amount Change (%) Share (%) * Amount Change (%) * Share (%) Amount Change (%) Share (%)
Amount
Fire 64,504 -5.2 14.2 62,267 60,237 -3.3 14.8 265,930 1.5 16.3
Marine 15,859 1.7 3.5 15,678 16,943 8.1 4.2 62,013 4.8 3.8
Personal Accident 110,240 29.4 24.2 109,436 85,374 -22.0 21.0 358,274 2.0 22.0
Voluntary Automobile 158,445 0.3 34.8 148,429 146,824 -1.1 36.1 575,596 -1.0 35.3
CALI 55,666 1.1 12.2 46,435 47,065 1.4 11.6 183,855 1.3 11.3
Other 50,645 5.3 11.1 49,702 50,043 0.7 12.3 183,599 0.6 11.3
Total
(Deposit premiums from policyholders)		 455,362
(92,470) 		5.9
(28.4) 		100.0
(20.3) 		431,950
(91,894) 		406,488
(63,001) 		-5.9
(-31.4) 		100.0
(15.5) 		1,629,270
(300,819) 		0.7
(-1.9) 		100.0
(18.5)

Net Premiums by Lines of Insurance
(millions of yen)
  First quarter
(Jun. 30, 2003)		 First quarter
(Jun. 30, 2004)		 (cf) FY2003
(Mar. 31, 2004)
Lines of Insurance Amount Change (%) Share (%) * Amount Change (%) Share (%) Amount Change (%) Share (%)
Amount
Fire 39,802 0.7 11.8 37,947 38,743 2.1 11.9 173,633 4.4 13.4
Marine 11,959 5.2 3.6 11,809 13,849 17.3 4.3 56,331 7.3 4.4
Personal Accident 34,274 2.4 10.2 33,859 34,227 1.1 10.5 124,159 1.2 9.6
Voluntary Automobile 157,508 0.3 46.8 147,508 146,414 -0.7 45.1 573,803 -1.0 44.4
CALI 45,858 103.0 13.6 43,775 43,963 0.4 13.6 194,018 17.6 15.0
Other 47,252 11.3 14.0 46,366 47,246 1.9 14.6 171,115 4.1 13.2
Total 336,655 9.8 100.0 321,267 324,445 1.0 100.0 1,293,063 3.4 100.0

(cf) Figures after excluding the effect of abolition of reinsurance to government related to CALI.
CALI 26,170 15.9   24,087 24,319 1.0   103,563 4.5  
Total 316,967 3.4 301,579 304,801 1.1 1,202,607 1.5

Net Claims Paid by Lines of Insurance
(millions of yen)
  First quarter
(Jun. 30, 2003)		 First quarter
(Jun. 30, 2004)		 (cf) FY2003
(Mar. 31, 2004)
Lines of Insurance Amount Change (%) Share (%)   Amount Change (%) Share (%) Amount Change (%) Share (%)
Fire 13,362 13.9 8.8   11,788 -11.8 7.5 56,873 7.1 8.7
Marine 6,910 49.3 4.6 5,322 -23.0 3.4 26,574 11.2 4.1
Personal Accident 12,352 6.2 8.1 12,745 3.2 8.1 51,133 1.6 7.8
Voluntary Automobile 79,564 2.5 52.4 78,533 -1.3 50.0 332,515 0.6 50.9
CALI 17,380 19.8 11.4 25,187 44.9 16.0 82,146 34.8 12.6
Other 22,377 3.7 14.7 23,478 4.9 15.0 104,259 2.2 15.9
Total 151,947 7.2 100.0 157,055 3.4 100.0 653,503 5.3 100.0

(cf) Figures after excluding the effect of abolition of reinsurance to government related to CALI.
CALI 15,179 4.6     15,108 -0.5   61,403 2.1  
Total 149,745 5.7 146,976 -1.8 632,759 2.1


Note:1. GRR premiums of the automobile insurance "ModoRich" excluded from "Direct Premiums Written" and "Net Premiums" are as below;
 
First Quarter ended June 30, 2003 -2,557 million yen  
(The figures based on premiums excluding the "forward dated" policies. -2,613 million yen )
First Quarter ended June 30, 2004 602 million yen  
For the year ended March 31, 2004 -3,397 million yen  
2. * The figures are computed based on premiums excluding the "forward dated" policies.

GRR premium: Good Result Return premium; see also 2 (1) Note 2 on page 1.
CALI: compulsory automobile liability insurance.

Investments Non-consolidated

(millions of yen)
  First quarter
(Jun. 30, 2003) 		First quarter
(Jun. 30, 2004) 		(cf)FY 2003
(Mar. 31, 2004)
Interest and dividend income 32,682 31,652 114,322
Gain on sales of securities 9,264 4,739 108,720
Gain on redemption of securities 1 659 1,499
Loss on sales of securities 342 883 34,147
Loss on redemption of securities - - 8

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