[English Translation] May 24, 2005   Mitsui Sumitomo Insurance Group Targets for the “Challenge 10, Stage 1”Medium-Term Management Plan Mitsui Sumitomo Insurance Co., Ltd. (MSI; President, Hiroyuki Uemura) has prepared management targets for its “Challenge 10, Stage 1” medium-term management plan covering the two-year period through fiscal 2006. “Challenge 10, Stage 1” is the action plan to guide MSI through the first two years of its “Challenge 10” long-term plan, which has a target date of fiscal 2010, ending March 31, 2011. While some of the targets were announced on May 23 along with the announcement of the financial results for the previous fiscal year, we would like to officially present these again as follows. 1. Management Targets of “Challenge 10, Stage 1” Targets for Fiscal 2006   MSI on a Non-Consolidated Basis   Net premiums ¥1,340 billion (Note 1)   Combined ratio 91.8% (Note 1, 2)   Net loss ratio 61.6% (Note 1)   Net expense ratio 30.2% (Note 1)   Net interest and dividend income ¥52.0 billion (Note 1)   Net income ¥68.5 billion     MSI Group on a Consolidated Basis   Net premiums ¥1,484 billion (Note 1)   Group Core Profit ¥84.0 billion (Note 4)   Group ROE ¥5.6% (Note 5)   Overseas Business   Core profit ¥10.0 billion (Note 6)   Life Insurance Business   Insurance Amount in force ¥9,020 billion (Note 7)   Core profit ¥12.5 billion (Note 8)   Financial Services and Risk-Related Business   Core profit ¥1.8 billion (Note 9, 10)   Notes: 1. Excludes refundable premiums under “ModoRich” automobile insurance policies (with contracts that provide for return of premiums on maturity) 2. Combined ratio: The total of the loss ratio and expense ratio 3. Net interest and dividend income: Interest and dividends received minus income credited to investment deposit by policyholders 4. Group Core Profit: Equals consolidated net income minus capital gains and losses on stocks (buying and selling gains and losses, etc), minus gains and losses on credit derivatives, minus other special gains and losses, minus consolidated net income of life insurance subsidiaries, plus profit before the standard policy reserve increase of Mitsui Sumitomo Kirameki Life Insurance, plus equity in earnings under U.S. GAAP of Mitsui Sumitomo CitiInsurance Life Insurance Co., Ltd., and certain other items (All profits are on an after-tax basis) 5. Group ROE: Group Core Profit divided by consolidated shareholders’ equity 6. Core profit of overseas operations: Profit from overseas departments on a non-consolidated basis plus net income of consolidated overseas subsidiaries and affiliates, plus profits of non-consolidated overseas Group companies 7. Life insurance amount in force: Insurance contracts written and outstanding of Mitsui Sumitomo Kirameki Life Insurance (excluding group insurance) 8. Core profit of the life insurance business: Profit before the standard policy reserve increase of Mitsui Sumitomo Kirameki Life Insurance plus equity in earnings of Mitsui Sumitomo CitiInsurance 9. Core profit of the financial services business: Profit of financial service businesses on a non-consolidated basis, plus net income of consolidated subsidiaries and affiliates 10. Core profit of risk-related business: Profits of non-consolidated Group companies engaged in risk-related businesses 2. Explanation of Principal Targets (1) MSI on a Non-Consolidated Basis     [1]Net Premiums MSI will aim to increase its share in the retail market by substantially upgrading its competitiveness in key insurance products and expanding sales of personal insurance products. MSI will also adopt aggressive measures appropriate for increasing revenues in the corporate and dealer markets. Through these measures, MSI will work to increase premiums 1.1% annually in comparison with fiscal 2004 and aim to be number one in terms of the percentage increase in net premiums. [2]Combined Ratio MSI will endeavor to be No. 1, with the lowest combined loss and expense ratio, by working to improve its loss ratio, especially in the automobile insurance field, and step up its activities to substantially lower operating expenses through structural reforms in its sales network. [3]Net Income MSI will take steps to increase its net income by steadily expanding profit from insurance underwriting while maintaining and improving its superior performance in asset management. (Net income in fiscal 2004 was ¥60.7 billion.)         (2) MSI Group on a Consolidated Basis     [1]Net Premiums To consolidate MSI’s position as No.2 in terms of net premiums, the Company will maintain its policy of working to increase premiums in the domestic market and actively expanding its overseas business in areas of strength, with the aim of becoming No. 1 in terms of the increase in net premiums. [2]Group Core Profit The members of the MSI Group will press forward with initiatives to reach their goals in their five core business areas with the common goal of enhancing the core profit indicator.         (3) Overseas Business     MSI will place priority on building an overwhelmingly superior position in Asia and aim to generate ¥10.0 billion in core profit from this region.         (4) Life Insurance     Mitsui Sumitomo Kirameki Life Insurance will endeavor to substantially increase its marketing capabilities while implementing thoroughgoing measures to prevent policy cancellations and lapses, with the aim of becoming No. 1 among life insurance companies belonging to non-life insurance groups. In addition, MSI will work to steadily expand the scope of operations of Mitsui Sumitomo CitiInsurance, which specializes in individual pensions by expanding its product lineup and broadening its marketing channels.         (5) Financial Services     MSI will work aggressively to implement advanced initiatives based on Group strengths and work to build that base for future growth in 401k-type plans, financial guarantees, asset management, and other fields.         (6) Risk-Related Business     In its risk-related business, MSI will seek synergies with its other activities, and work to strengthen these operations.