Mitsui Sumitomo Insurance Company Limited (“MSI”), Tokyo, Japan (President, Chief Executive Officer: Toshiaki Egashira), is pleased to announce that it has established MSI GuaranteedWeather LLC (“MSIGW”) as a wholly owned subsidiary by acquiring the entire business of GuaranteedWeather, Kan., U.S., a risk management company handling weather derivatives and MSI’s business alliance partner to the date of acquisition.

The acquisition of GuaranteedWeather, one of the world-class players in the weather derivative market, not only enables MSI to establish a solid business system for providing clients with its weather derivative line-up stable , continuous and of reasonable pricing, but facilitates its entry into the weather derivative markets worldwide for full scale operation. And thereby, MSI aims to further expand the weather derivative business and increase revenues therefrom.

1. Profile of MSI GuaranteedWeather (“MSIGW”) Company name: MSI GuaranteedWeather LLC   Establishment date: April 17, 2007   Capital: Approximately 900 million yen   Head office location: State of Kansas, U.S.   Representative: Yutaka Mouri (General Manager, Financial Solutions Department, MSI)   Number of employees: 7   Line of business: Global portfolio management of weather risks 2. Business outline (1) Post-acquisition business diagram (2) Outlook of post-acquisition business development (i) MSI established MSIGW, 100% subsidiary.   (ii) MSI and MSIGW will promote weather derivative deals in Japan/Asian and US/European markets, respectively.   (iii) MSIGW will conclude a risk partnership agreement with Hannover Reinsurance (“Hannover Re”) for developing weather derivative markets in Europe.   (iv) Transactions obtained in such ways as mentioned above will be ceded to the Global Weather Risk Pool managed by MSIG.   (v) Distributions out of the earnings from the Global Weather Risk Pool will be made to MSI and Hannover Re. 3. Benefits from the acquisition and subsequent business development (1) The acquisition helps MSI enter as a global primary player into the weather derivative markets and thereby establish a pool of globally diversified weather risks. Consequently it will enable MSI to provide clients with weather derivative line-up more stable and of reasonable pricing than in case of the business limited within Japan. Also, MSI will better serve clients hoping to mitigate larger risks. (2) Such established business system for underwriting weather risks across the world will give MSI opportunities to actively underwrite weather risks in the Asian region now experiencing rapid economic growth. (3) The excellent human resources and most advanced technologies taken over from GuaranteedWeather by the acquisition will bring MSI potentiality to develop new markets of the weather risk business. < Reference: Weather derivative business at MSI > MSI prides itself as the pioneer and market leader of weather derivatives in Japan. Since MSI effected the first weather derivative transaction in Japan June 1999, it has been pioneering this business field and making historical attainments, which range from the first commercial contract via a local bank acting as an intermediary in Japan February 2001 to the first thunder derivative deal for in Japan October 2006.   April 2003, MSI concluded a business alliance with GuaranteedWeather, one of leading players worldwide in the weather derivative markets, and since then, has made efforts to strengthen its weather derivative business, absorbing and utilizing skills and expertise from overseas.   The weather derivatives are actively traded worldwide in the markets as is seen in the Chicago Mercantile Exchange (CME), and the business is expected to prevail and grow in the Asian markets, not limited to Japan. Currently, the overall market is said to be about fifty billion dollars in size by notional amounts. MSI is entering into the markets as a primary player with the world-class staff armed with systems and other resources taken over in the said acquisition, and will contribute itself to growth of the market.