[English Translation] November 10, 2005 NOTICE OF REVISION OF THE BUSINESS RESULTS FORECAST FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2005 AND FOR THE FISCAL YEAR ENDING MARCH 31, 2006 The Company will amend the business results forecast for the six months ended September 30, 2005 and for the fiscal year ending March 31, 2006, which was made public on May 23, 2005, as set forth below. 1. Revision of Business Results Forecast for the Six Months ended September 30, 2005: (1) Revision of Non-Consolidated Business Results Forecast (from April 1, 2005 to September 30, 2005): (Billions of Yen)   Net premiums written (Note) Ordinary profit Net income Previous forecast (A) (667.0) 665.0 47.0 30.0 Revised forecast (B) (674.0) 671.5 71.0 35.0 Increase or decrease (B)-(A) (7.0) 6.5 24.0 5.0 Percentage of increase or decrease (1.0%) 1.0% 51.1% 16.7% (Reference) Results of the corresponding six months of the previous fiscal year (from April 1, 2004 to September 30, 2004) Results for the corresponding six months of the previous fiscal year (658.1) 659.9 10.5 26.9 (Note)   The figures presented in parenthesis in the upper lines in the column “Net premiums written” represent the amounts after deducting the refundable premium of the Company’s original automobile insurance “Modo-Rich”, which contains a special clause for premium adjustment and refund at maturity and are provided for the purpose of comparison with other companies. The same shall apply hereinafter. (Reasons for the Revision)   An increase in ordinary profit is attributable to an increased gain from portfolio management, such as sales of stock, among other things, over the initial forecast at the beginning of the fiscal year ending March 31, 2006. In addition, there has been a lesser amount of losses paid due to natural disasters in comparison with the initial forecast. The amount of increase in net income for the six months ended September 30, 2005 is, however, expected to be smaller than the increase in ordinary profit. This is attributable to the Company’s plan to account for a reserve for extraordinary risks of ¥23.4 billion as an extraordinary loss as explained below. Due to the amendment to the Enforcement Regulations of the Insurance Business Law, etc., in respect of the underwriting reserve of non-life insurance companies, after formulating the reserve plan the reserve for extraordinary risks of fire insurance will be reserved up to the maximum amount of the reserve from the six months ended September 30, 2005. This amount is calculated based on the estimated net claims paid in the case of the occurrence of a large-scale natural disaster of an approximately 70-year reemergence period (such as a typhoon of the degree of the Ise Bay typhoon in Japan). In light of the purpose of this new system, the Company will raise the level of underwriting reserve of every fiscal year, and the extraordinary loss of ¥23.4 billion will be stated for the six months ended September 30, 2005, the first year that the new system was introduced, in order to promptly reserve the necessary amount. (2) Revision of Consolidated Business Results Forecast (from April 1, 2005 to September 30, 2005): (Billions of Yen)   Ordinary income Ordinary profit Net income Previous forecast (A) 1,030.0 51.0 32.5 Revised forecast (B) 1,061.5 72.0 33.5 Increase or decrease (B)-(A) 31.5 21.0 1.0 Percentage of increase or decrease 3.1% 41.2% 3.1% (Reference) Results of the corresponding six months of the previous fiscal year (from April 1, 2004 to September 30, 2004) Results for the corresponding six months of the previous fiscal year 1,018.4 14.4 28.3 (Reasons for the Revision)   The consolidated business results forecast will be revised due to the same reasons for the revision of the non-consolidated business results forecast. It will also be revised in light of a loss (approximately ¥3.4 billion) caused by hurricanes in the United States, which has affected the business results of the consolidated companies. 2. Revision of Business Results Forecast for the Fiscal Year ending March 31, 2006: (1) Revision of Non-Consolidated Business Results Forecast (from April 1, 2005 to March 31, 2006): (Billions of Yen)   Net premiums written Ordinary profit Net income Previous forecast (A) (1,323.0) 1,320.0 103.0 64.0 Revised forecast (B) (1,336.0) 1,331.0 124.0 64.0 Increase or decrease (B)-(A) (13.0) 11.0 21.0 -- Percentage of increase or decrease (1.0%) 0.8% 20.4% -- (Reference) Results of the previous fiscal year (from April 1, 2004 to March 31, 2005) Results of the previous fiscal year (1,310.2) 1,314.3 79.3 60.7 (2) Revision of Consolidated Business Results Forecast (from April 1, 2005 to March 31, 2006): (Billions of Yen)   Ordinary income Ordinary profit Net income Previous forecast (A) 2,020.0 114.0 70.0 Revised forecast (B) 2,050.0 130.0 66.0 Increase or decrease (B)-(A) 30.0 16.0 -4.0 Percentage of increase or decrease 1.5% 14.0% -5.7% (Reference) Results of the previous fiscal year (from April 1, 2004 to March 31, 2005) Results of the previous fiscal year 2,021.9 87.5 65.7 (Reasons for the Revision)   The consolidated business results forecast for the fiscal year ending March 31, 2006 will be revised due to the revision of the business results forecast for the six months ended September 30, 2005. Note: The foregoing are forward-looking statements based on a number of assumptions and beliefs in light of the information currently available to management and subject to significant risks and uncertainties. Actual financial results may differ materially depending on a number of factors including adverse economic conditions, currency exchange rate fluctuations, adverse legislative and regulatory developments, delays in new product launches, pricing and insurance product initiatives of competitors, the inability of the Company or its subsidiaries or affiliates to market existing and new insurance products effectively, infringements of the intellectual property rights of the Company or its subsidiaries or affiliates and adverse outcome of material litigation involving the Company or its subsidiaries or affiliates.