January 8, 2004 MS Quarterly News (3rd Quarter, 2003) We, Mitsui Sumitomo Insurance Co., Ltd. ("MSI"), are pleased to issue the quarterly newsletter with a summary of the topics during the third quarter ended December 31, 2003, as set below. Performance Preliminary for the third quarter of fiscal 2003 from October to December 2003;   Q3, fiscal 2003 (October to December) Fiscal year to date (April to December) Lines of insurance Premiums (sales basis) (in million yen) Growth rate (%)* Premiums (sales basis) (in million yen) Growth rate (%)* Voluntary Automobile 147,947 -2.6 440,289 -1.0 Compulsory Automobile Liability 36,785 1.0 110,988 0.7 Fire 48,762 2.6 139,104 5.8 Personal Accident 30,661 30.0 85,434 11.9 Miscellaneous 37,950 -2.6 120,163 1.2 Cargo and Transit 14,665 5.3 42,157 4.8 Hull 4,312 6.5 16,765 2.5 Total 321,083 1.4 954,901 1.8 *The "growth rate" represents an incremental rate in comparison to the same period in fiscal 2002. < Remarks > Total premiums increased 1.4 percent mainly due to steady sales in the lines of fire, personal accident and marine insurances. As for fire insurance, the mainstay "Home Pika-ichi" continuously met good demands as well as OTC sales at bank went well. Personal accident line marked a remarkable growth rate as group accident and medical insurance fared well and, in addition, the new medical insurance "ViV Shushin" was hot-selling. ViV Shushin sold about eighty thousand policies within two months immediately after its release last November, and, including its annual premium written, personal accident line accounts much for the overall increase in premiums. Selected News Releases (October - December 2003) note: released on the date in parenthesis (1)  New Products and Services   *  "Overseas Traveler's Accident Insurance via Mobile Phone" launched (October 3)     A totally new type of application procedure was developed for overseas travelers by combined use of application pamphlet and applicant's mobile phone, and this service was started offering through the channels of major travel agencies. An applicant receives a pamphlet containing an application form for this service at his/her travel agent, and applies for insurance online, having an access to the designated website over phone. The service enables a traveler to apply for overseas travelers accident insurance "easily" "anywhere" "anytime," and besides, cashless. It is of great convenience to traveling customers.   *  Inter-Risk extended CSR program consultation to full service (October 8)     Inter-Risk Research Institute & Consulting Inc. ("Inter-Risk"), risk management consultant arm of the MSI group, got prepared for expansion of consultation service of corporate social responsibility ("CSR") program. The preparation was made not simply to meet CSR-driven needs of clients in the backdrop of increasing companies who makes efforts in CSR activities, but simultaneously to make a smooth decision of proposal after using wide-ranging know-how within the consulting firm effectively and submit it to customer without delay.   *  MSI and Kirameki Life renewed corporate websites. (November 11 and 18, respectively)     MSI and Mitsui Sumitomo Kirameki Life Insurance Company, Limited redesigned sweepingly their corporate websites to cope with increasing number of the Internet users and their changes in consumer behavior. More functions which had lacked before were now provided online to make the websites more convenient to online customers. For example, an applicant user can learn preliminary premium estimate of medical, fire, or life insurances, and a policyholder can submit amendment application at these websites.   *  Accident report center,"Osaka Anshin-Station" started operation (December2)     Another "Anshin-Station" one of the largest accident report centers in the industry, was newly opened in Toyonaka-city, Osaka Prefecture, and started its operation in December. By building the second station, the bipolar system of Tokyo and Osaka stations improves response to calling customer in an accident. Moreover, even if one of them is forced to cease its operation due to a large-scale disaster or any unexpected damage, the other one keeps working 24hours 365 days a year, and thus this system ensures us to back up our services to calling customer in trouble. (2)  Life Insurance, New Business and Overseas   *  Indonesian subsidiary rated best by local financial magazine (November 5)     PT. Asuransi Mitsui Sumitomo Indonesia, MSI's subsidiary in Indonesia, was listed top in the ranking of its own rating by "Info Bank Magazine." The magazine is the only and the largest financial magazine in the country with its history of 25-year publishing, and a national bank is listed among the shareholders of its publisher.   *  Collaboration of Sanki, Inter-Risk and MSI commenced for BCM consultation (November 17)     Sanki Engineering Co., Ltd, Inter-Risk Research Institute & Consulting Inc. and MSI entered into a business tie-up, and began to offer consultation service of business continuity management ("BCM") based on the agreement. This is the first comprehensive BCM consultation service in Japan that covers general issues, including assessment of facility risk from BCM viewpoint, making a plan to continue business in preparation for a case of serious problem, building a BCM framework in a client company.   *  MSI Citi Life continuously running ahead     Variable annuity insurance continued to meet strong demands at Mitsui Sumitomo CitiInsurance Life Insurance Co., Ltd ("MSI Citi Life"), marking its highest monthly record of49 billion yen in December. As a result, to this date, MSI Citi Life has sold 275.8 billion yen in fiscal 2003, and 318.3 billion yen since its opening in October 2002. < note > sales at MSI Citi Life quarter sales amount October to December, 2002 18.4 billion yen January to March, 2003 24.1 billion yen April to June, 2003 34.9 billion yen July to September, 2003 116.1 billion yen October to December, 2003 124.8 billion yen Aggregate 318.3 billion yen (3)  Other Business and Corporate Citizenship Topics   *  Chairman Inokuchi won "Personality of the Year of Asia Insurance Industry Award" (October 14)     Takeo Inokuchi, Chairman and CEO of MSI, is the first Japanese who was awarded "Personality of the Year" in the contest organized annually by "Asia Insurance Review" ("AIR") jointly with "The Review." AIR is a magazine specialized in insurance, targeting readers in Asian business communities of the industry. Personality of the Year, one of the twelve prizes in the contest, is to be awarded to "the person who has made the most outstanding individual contribution to the Asian insurance or reinsurance industry."   *  "Brand Risk Management Seminar" held by Inter-Risk and MSI (November 7)     Inter-Risk and MSI jointly held "Brand Risk Management Seminar" on November 27. Brand equity has been increasingly focused on as valuable intangible asset these years. For brand risk management as one of current corporate issues, the seminar targeted mainly managers in charge of branding, risk management and management planning of public listed companies, and provided practical information of risk management to protect brand equity from risks in the related areas.   *  Mitsui Sumitomo Insurance Welfare Foundation selected subsidy recipients among researchers on traffic safety and welfare of the elderly (November 7)     Mitsui Sumitomo Insurance Welfare Foundation selected this year's beneficiary researchers of its subsidies, and honored them with the subsidy at the ceremony on November 10. Since its establishment in 1975, the foundation has donated more than 1,729 million yen to 1,260 researches in order to contribute to increasing traffic safety and elderly welfare.   *  Mitsui Sumitomo Insurance Cultural Foundation invited applicants openly to "Cross-cultural Activity Subsidy" for fiscal 2004 (December 5)     Mitsui Sumitomo Insurance Culture Foundation is openly inviting amateur groups who support local cultural promotion activities to apply for its subsidies for fiscal 2004. In fiscal 2003, 14 groups such as "Tonda Ningyo Kyo-yu-dan" of ningyo joruri or Japanese traditional puppet theater were selected and received seven million yen of subsidy in total. The foundation wins a high reputation of its activities among cultural activity promoters in local governments and municipals, and was awarded a prize of Minister of Education in 2000.   *  MSI co-sponsoring musical "Mamma Loves Mambo III," featuring Ms Hitomi Kuroki (December 19)     MSI will sponser the musical "Mamma Loves Mambo III" which will start April 2004 and features Ms. Hitomi Kuroki. MSI has been appointing her to feature its TVCM of automobile insurance "MOST" in class visitation version in 2002 and mambo clinic version in 2003, and they both met warm perception of TV audience. MSI has decided to participate in the musical and sponsor it, too, this time. MSI group is pleased to assist music and culture activities and contribute to supporting keep society bright and sound. Amateur Sports     *  Women's Marathon and Long Distance     The 14th East Japan Industrial Ekiden Championship in Saitama Prefecture, Japan on November 3 MSI team won the relay race, marking best record in five legs out of six, and finished with a new meet record of 2:13.35. The team reigned in the road race throughout from the first leg to the last one to be first finisher. This was MSI's fourth straight winning at the ekiden meet there. The 23rd National Industrial Women's Ekiden Championship in Gifu Prefecture, Japan on December 14 MSI team won the race in 2:13.38, bettering the previous meet record of 2:14.31, and this was MSI's third winning at this meet, and it has been two years since its second one. MSI and Kyocera ran neck and neck to lead the race from the first to fifth leg. Finally in the sixth and last leg, MSI pulled away persistent Kyocera with a spurt, and crossed the finish line with a new meet record together with marking three leg fastest record out of six.     *  Women's Judo     Kodokan Cup Japan Judo Weight Class Championships at Chiba Port Arena, November 15 Both Yuki Yokosawa in the 52 kg category and Noriko Mogi in the 57 kg category won their second straight title of this championship. Rie Iwafuji won the silver medal in the 57 kg category, and Yoshie Ueno won the bronze in the 63 kg category, too. The 21st Fukuoka International Women's Judo Championships at Fukuoka Kokusai Center on December 13 to 14 MSI judo athletes made a ramakarble achievement at this meet. Both Masae Ueno in the 70 kg category and Yoshie Ueno in the 63 kg category captured the championship titles first time. Noriko Mogi and Yuki Yokosawa were the silver medallists in the 57 kg and 52 kg categories, respectively, and Rie Iwafuji won the bronze medallist in the 57 kg category.     < Information > Yoko Shibui of our women`s track&field team will attend Osaka International Marathon on January 25th ,and she aims to be selected as representative of Japan to the Olympic in Athenes.