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| [English Translation] |
April 12, 2005 |
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| Mitsui Sumitomo Insurance (MSI) Group |
| MSI Group
Formulates “Challenge 10” Long-Term Vision and New Medium-Term
Management Plan for Fiscal 2005 and Fiscal 2006 |
Mitsui Sumitomo Insurance Co., Ltd. (MSI; President, Hiroyuki Uemura)
has prepared a long-term management vision entitled “Challenge
10” with a target date of fiscal 2010, ending March 31, 2011,
and a new management action plan covering fiscal 2005 and fiscal 2006.
MSI has positioned the new management plan as the first stage in driving
forward toward the goals the MSI Group has set for fiscal 2010. The
new plan has, therefore, been named “Challenge 10, Stage I.”
All personnel of the Group will work toward implementing the policies
under the plan.
Please note that the MSI Group plans to decide on the specific management
objectives to be achieved by the end of fiscal 2006 following the
settlement of financial results for the year ended March 31, 2005.
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Overview of Challenge 10 |
| Overall Goals: |
| Under Challenge 10, all MSI Group members will strive to be a “bigger,
stronger, better company” and implement the Group’s business
principles, to enable the Group to become a top-ranking player in
the global insurance and financial services business. |
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Challenge 10 presents an aggressive vision for doubling
the profitability of the Group as a whole and “Grow
to Become an Insurance and Financial Group that Ranks
among the Top Global Players.” |
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To attain these objectives, the MSI Group will work
to achieve an optimal allocation of capital and invest
in growth businesses. Through pursuing further development
in its five major businesses, the Group will aim to transform
the structure of its business portfolio––which
now derives about 80% of its core profits from domestic
non-life insurance––to a more balanced business
composition that meets global standards.
(Five major businesses: Domestic non-life insurance business,
Life insurance business, Overseas business, Financial
services, and Risk-related business) |
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Moreover, the Group will divide the next six years,
through 2010, into three stages and clearly identify and
focus sharply on the issues that must be addressed at
each stage. Along with these activities, the Group will
also work toward achieving its “seven major business
strategy targets,” implementing its “three
innovations;” putting in place “human resource,
organizational, and personnel systems based on Group strategies;”
and moving forward with its “corporate quality improvement
initiatives by positioning corporate social responsibility
(CSR) as a guiding principle.” |
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| The key words that form the framework for Challenge 10 are
as follows: |
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Seven Major Business Strategy Targets |
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The Challenge 10 vision sets seven specific target indicators to
measure the attainment of the overall goals of growth and profitability
by fiscal 2010. |
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Three Innovations |
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To maintain and enhance competitiveness for the long term––as
competition becomes increasingly more intense in the domestic non-life
insurance market––Group members will work to earn the
strong loyalty of their customers by reforming marketing, claims handling
services, and other operations. These innovations will be concentrated
especially in Stage I, the first two years of Challenge 10. |
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Human Resource, Organizational, and Personnel Systems Based on Group
Strategies |
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To create systems that enable the staff members who conduct the
Group’s business operations to work to the best of their abilities
to put strategies into action, the Group plans to make improvements
in its human resource, organizational, and personnel systems, as well
as in its human resource development activities. |
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Corporate Quality Improvement Initiatives Set with CSR as a Guiding
Principle |
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The MSI Group positions CSR activities, based on the MSI Group Charter
on Professional Conduct, as the basic action principle for guiding
the conduct of all its personnel. The Group will aim to fulfill properly
its responsibilities to all its stakeholders and strive to become
a company that attains top rankings globally in all aspects of corporate
quality. The Group will take aggressive initiatives in the following
specific areas: enhancement of customer satisfaction (CS), capital
policy, risk management and compliance, and corporate governance.
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| Outline of the “Challenge 10,
Stage I” Medium-Term Management Plan |
| The main points of the plan covering the first two years (fiscal
2005 and fiscal 2006) of activities aimed at attaining the goals of
Challenge 10 are as follows: |
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A Winning Slogan |
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As the Group looks toward 2010 and works to draw fully on its comprehensive
strengths to secure its business foundation, its slogan will be “Out
of the Starting Gate Quickly into the New Era.” The aim of this
slogan is to give a sense of urgency to deal speedily with the changes
in the business environment, including the challenges of the dawning
of new eras in risk and financial services. The Group, as a whole,
must make a strong start in the two years of Challenge 10, Stage I
and make a total commitment to building a strong business foundation
for the future. |
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Innovating in Marketing, Claims Handling Services, and Other Operations |
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To establish an operational model that will make sustainable development
possible, the Group must make innovations in five areas and, along
with these innovations, must not only establish indicators for measuring
CS but also become No.1 in CS. The five areas are distribution channel
restructuring, marketing activities innovation, agency activities
innovation, claims handling services innovation, and business processes
restructuring for greater CS. |
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Making Major Gains in Growth, Profitability, and Corporate Quality |
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To significantly enhance these three key aspects of the Group’s
activities, the Group will implement the following strategies. |
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| Growth: |
Expand the Group’s five business areas through strategies
to become the industry No. 1 and innovative strategies that
draw on the comprehensive capabilities of the Group. |
| Profitability: |
Pursue strategies to enhance claims handling services, cost-competitiveness,
and portfolio investment. |
| Corporate Quality: |
Take initiatives aimed at attaining top rankings globally
in all aspects of corporate quality. |
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Individual Strategies: “Target No. 1” |
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Under the new medium-term management plan the Group has set targets
to attain by the end of fiscal 2006 for virtually all key management
indicators as shown below. |
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Target the No. 1 Position
by the End of Fiscal 2006 |
Explanation |
| No.1 position in the
amount of increase in consolidated net premiums written |
To solidify the Group’s
No. 2 position in terms of consolidated net premiums,
attained under the previous plan, the Group will maintain
its policy of expansion in Japan and aggressively develop
business in those areas where it is strong overseas. |
| No.1 position in growth
rate of net premiums written from domestic non-life insurance |
Work to strengthen competitiveness
in key products and substantially expand personal accident
and medical insurance product offerings. Also, aim to
achieve the No. 1 position in growth by aggressively implementing
expansion policies, including increasing market share
in the retail market, securing the No. 1 position in the
corporate market, and being within top 3 in the auto dealer
area. |
| No.1 position in gross
insurance premiums and net income from overseas business |
Focus on building a dominant
position in Asia outside Japan and aim to be No. 1 among
Japanese companies, both in size of premiums and profitability. |
| No.1 position in growth
rate of amount in-force business (MitsuiSumitomo Kirameki
Life) |
Aim to expand operations
of MitsuiSumitomo Kirameki Life Insurance as one of the
pillars of the profit of MSI Group and to become No. 1
in terms of growth rate of life insurance amount in-force
among subsidiaries of non-life insurers. |
| No.1 position for combined
ratio (lowest loss ratio plus expense ratio) |
Aim to be No. 1, with
the lowest loss ratio and expense ratio. Focus especially
on improving the loss ratio in automobile insurance. |
| No.1 position in the
rate of investment return |
Continue to work to maintain
and improve the Group’s strong performance in investment
management and strive to be No. 1. |
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