April 8, 2004 MS Quarterly News (4th Quarter, 2003) We, Mitsui Sumitomo Insurance Co., Ltd. ("MSI"), are pleased to issue a quarterly newsletter with summary of the topics during the fourth quarter ended March 31, 2004, as below. Performance preliminary for the fourth quarter of fiscal 2003 from January to March 2004;   Q4, fiscal 2003 (January to March) Fiscal year to date (April to March) lines of insurance premiums (sales basis) (in million yen) growth rate (%)* premiums (sales basis) (in million yen) growth rate (%)* Voluntary Automobile 133,903 ▲2.9 573,847 ▲1.5 Compulsory Automobile Liability 42,375 3.8 153,327 1.5 Fire 47,953 8.7 186,724 6.4 Personal Accident 23,975 1.9 109,160 9.2 Miscellaneous 35,475 4.1 155,411 1.7 Cargo and Transit 13,904 7.4 56,060 5.4 Hull 3,817 27.2 20,582 6.3 Total 301,401 1.6 1,255,110 1.7 *The "growth rate" represents an incremental rate in comparison to the same period in fiscal 2002. < Remarks > The fire insurance category fared very well, keeping the good pace from the previous quarter, mainly due to robust sales of its flagship item, "Home Pika-ichi" as well as steady OTC sales at banks. The lines of miscellaneous insurance and marine-related such as cargo and hull, with several large contracts with corporate clients, also contributed to a 1.6 percent increase in total premiums. Total premiums accumulated for fiscal 2003 increased 1.7 percent annually. Selected News Releases (January - March, 2004) note: released on the date in parenthesis (1)  New Products and Services   *  Risk management service, "Unten-dotku" for fleet drivers on sale (January 6)     "Unten-dotku" is a very accident-preventive "escorted driving counseling" service, which is conducted individually based on analysis of a driver's data collected by on-board recorder. The risk management service for car drivers is the first one of the kind developed by a non-life insurer in Japan. Promotion of the consultation service was launched January 2004. For a fleet client, the manager responsible for drivers not only obtains their collected driving data and analysis, but enjoys a comprehensive service package, including proposal of remedies for specific drivers, while the drivers individually receive escorted driving counseling. This program is of MSI' s original design, and the service is expected to reduce accidents greatly by ensuring each driver to drive safely and improve his/her driving technique and manners as well as awareness of safety.   *  MSI Kirameki Life launched Family income policy and rider with no cash surrender (January 7)     Mitsui Sumitomo Kirameki Life Insurance Co., Ltd. developed "Family income rider with no cash surrender value" and "Riders related to accidents and diseases with no cash surrender" for overnight stay in hospital, and they are available since February 2004. In these new items, deductible period is shortened from "four day deductible type" in the conventional "Riders related to accidents and diseases" to "overnight type," meaning no deduction. The life insurance arm of MSI made revisions like this to upgrade the coverage of their insurance comparable to the level of its parent's line of medical insurance, adding with no cash surrender value "with no cash surrender value" options at budget-priced premium scheme to the line.   *  Inter-Risk Research started "Environmental Risk Consulting" adaptable to practical use (January 8)     Inter-Risk Research Institute & Consulting Inc. ("Inter-Risk") built "Environmental Risk Consulting" program in which a team of environment-related qualified professionals from Inter-Risk assesses independently and objectively environmental risk exposure of a corporate client, and make a proposal for better protection. Inter-Risk began to offer the consultation service January 2004. The team is comprised of Inter-Risk's seven qualified staff such as a Pollution Control Manager, ISO14001 Environmental Management System Lead Auditor and Qualified Soil Environment Manager. They assess environmental risks a corporate client is exposed to, and propose a remedy for better mitigation based on their assessment.   *  Inter-Risk initiated "Brand Risk Management" consultation (January 30)     February 2004, Inter-Risk started a consulting business in risk management against possible incident which may damage company's valuable "brands" such as corporate name and product name. A team of five consultants dedicated to brand protection makes a thorough study on potential vulnerabilities of a client company, and meets precisely thus discovered needs for protection in response, which vary from company to company. A broad range of risk management service like this has never been available in brand protection in Japan.   *  American Appraisal Associates Japan launched valuation business (February 23)     March 2004, American Appraisal Japan Co., Ltd. ("AAJ"), MSI's general property appraisal joint-venture with American Appraisal Associates, Inc. ("American Appraisal") of the US, entered into insurable value appraisal business of assessing certain corporate property such as buildings, machinery and equipment to be insured by an applicant company. Backed by American Appraisal's network covering 52 cities in 17 countries in the world and expertise of over-a-century experience in asset valuation, AAJ is going to make use of these advantages and extend the appraisal services to clientele ranging from Japanese locals to globally extending large-scale multinationals.   *  Inter-Risk set up "Eco-Asset" consultation business for green space utilization (March 8)     Inter-Risk, Sumitomo Forestry Landscaping Co. Ltd., Kajima Corp., and Kokusai Kogyo Co., Ltd. are going to offer jointly consulting service named "Eco-Asset" for effective use of green spaces held by companies April 2004. This service provides assistance in constructing a management system for green fields and woodlands to a company holding such land, helps it review the current management methods and expenses, and proposes a new effective use of the land. While more companies are addressing corporate social responsibility (CSR) activities, introduction of "Eco-Asset" will not only result in enhanced utilization of company-owned green spaces as environmental resources, but will lead to improved social recognition of corporate value.   *  Temporary help line established for policyholders visiting Athens (March 16)     To prepare for policyholders of overseas travelers' insurance visiting Greece when the Athens Olympic Games will be held in August 2004, a temporary dedicated line was opened to be used to provide well-prepared 24-hour help service in Japanese language with policyholders. Many Japanese are expected to travel to Athens for the Olympic games. This very supportive telephone service obviously includes extending assistance to policyholder involved in an accident unfortunately, and moreover, arranging a Greek interpreter for policyholder staying there for the period, for example.   *  New general type of "401(k)" (defined contribution pension) scheme introduced for constructors (March 22)     "JIP"-Multi-Company DC Plan originally designed for medium- and small-size companies, has been redesigned to a general type of 401(k) plan for constructors, which is now on sale since April 2004. By adopting this plan, preparation period required for 401(k) introduction would be shortened considerably, from about two months for a conventional plan to only about a month. Thus, the plan would enables faster and smoother implementation of a 401(k) program. The least time-consuming 401(k) plan in the industry would contribute to establishing a new retirement fund program for employees of constructors as well as stable management of constructors.   *  Call center opened for policyholders of overseas travelers' insurance in China (March 26)     For policyholders and insured persons of overseas travelers' insurance who stay and work in China , "China Call Center," operating 24 hours all year round with Japanese speaking operators, opened in Beijing. As more Japanese enterprises are moving into China, not only people on business trip from Japan to China but Japanese expatriate business people and their families are expected to be increasing across China. (2)  Life Insurance, New Businesses and Overseas   *  Joint investment and management participation in Bangkok Life with Nippon Life (January 21)     Nippon Life Insurance Company ("Nippon Life") and MSI jointly invested in Bangkok Life Assurance Limited ("Bangkok Life") of Thailand, and decided to participate in the management. For MSI, this is the first entry into life insurance business in Asian markets. Nippon Life and MSI seek for chances to boost their revenues in the rapidly expanding and promising life insurance market in Thailand. At the same time, Both Japanese insurance companies aim to contribute to further development of Bangkok Life by transferring their management expertise to it., and are going to offer life insurance to Japanese clients operating in Thailand through Bangkok Life channel.   *  Investment in The Ayudhya Insurance of Thailand (February 6)     MSI purchased 62,250,000 shares or 24.9 per cent of the total issued share capital of The Ayudhya Insurance Public Company Limited ("Ayudhya") from its certain shareholders in accordance with agreement made with them. The deal amounted to THB 1,680.75 million, or approximately 4.5 billion yen worth. Adding to the current network of twelve offices in Asia, this investment enables MSI to provide broader services to its clients across Thailand through the office networks of both Ayudhya's and The Bank of Ayudhya Public Company Limited.   *  Multinational alliance formed for business continuity management (February 13)     Inter-Risk, Asgent,Inc, Sanki Engineering Co., Ltd., Hewlett-Packard Japan,Ltd, BT Japan Corporation headed by Chairman & CEO Koshiro Kitazato, Strohl Systems, a US software consultant and development firm in business continuity planning, and Severn Group Plc, a UK risk management consulting firm agreed on business cooperation in business continuity management ("BCM") called "The Business Continuity Institute Japan Alliance." The name of the alliance has been formally recognized by the Business Continuity Institute ("BCI"), the world-largest body of BCM professional membership.   *  Investment in Cambodian general insurer completed MSI's ASEAN network coverage (February 26)     MSI decided to purchase a 25% stake in Asia Insurance (Cambodia) Limited of Cambodia. Since it started its Asian business with operation in Thailand 1954, MSI finished up forming a network in ASEAN region with this investment, having presence in all eight countries and areas of ASEAN that are currently open to foreigners in underwriting business. And this is the first time for a major global general insurance company outside ASEAN countries to cover the whole region, and none of other Japanese has yet made it.   *  MSI enters into Chinese name market on WTO liberalization (March 4)     Effective February 26, China Insurance Regulatory Commission ("CIRC") granted MSI a permission to underwrite insurance risks of Chinese names. Although, as a foreign insurance company, MSI used to be allowed to underwrite corporate risks limited to foreign names in China, MSI is now able to expand the business domain to the markets of local corporate names and individuals. This business expansion has been realized as part of regulatory liberalization imposed on China on its accession to the WTO. Envisaging access to Chinese local market with the vast population and of high growth potentiality, MSI is going to cultivate Chinese market proactively.   *  MSI awarded "Excellent Insurance Company" in Thailand (March 26)     MSI's Thailand Branch was awarded as one of "Excellent Insurance Companies" by the Minister of Commerce of the Royal Kingdom of Thailand. MSI is the first Japanese non-life insurer that entered into Asian local markets of non-life insurance, starting with Thailand in 1954. The prize was given to the branch as a reward presumably for its time honored good operation results, financial soundness, contributions to the local market through its high underwriting retention volume, proactive suggestions to and cooperations with the local authorities and insurers' associations, and social contributions activity to be a model for others. (3)  Other Business and Corporate Citizenship Topics   *  MSI sponsored open seminar "Corporate Social Responsibility" (January 13)     January 2004, MSI and Inter-Risk jointly held an open seminar titled "Corporate Social Responsibility: Management System Construction and Practical Implementation of CSR Activities". At the seminar, inserting video recorded interviews with academic experts and well-experienced professionals, consultants from Inter-Risk explained the current trends within and outside Japan as well as how to draw a "grand design for implementation" and "how to conduct activities" as practical solutions to concerns and issues held by companies, which grumble "I don't know where to begin," complain "there's no good way," or like that.   *  Inter-Risk recognized as representative in Japan by BCI (January 19)     Inter-Risk was recognized as a representative of The Business Continuity Institute ("BCI") in Japan by the world-largest body of professional membership in business continuity management ("BCM"). Inter-Risk is BCI's first representative in Japan. To get prepared for this function, Inter-Risk set up a cross-divisional BCM project team.   *  New computer system deployed for company-wide "Perfect-Scoring CS Campaign" (February 12)     For better customer satisfaction ("CS"), "Perfect-Scoring CS Campaign" was launched across the company at MSI. In treating customers applying for non-life insurances, eight indices directly reflecting customer satisfaction were chosen for monitoring, and employees aim to improve these indices. A new system program was also introduced to observe performance in each index easily by a terminal computer so that CS-aware behavior should penetrate in daily operation. Since February 16, "CS Reports" have been issued individually to not only each sales department at MSI but its each agent in order to improve customer treatment of all salespersons at MSI and its agents.   *  Call for blood donation and Marrow Donor Registration to MSI employees (February 16)     To cooperate with the Japanese Red Cross Society and Japan Marrow Donor Program, MSI opened one-day donation clinic at its major offices in Japan January and February 2004, including Shinkawa HQ and Surugadai HQ in Tokyo where 169 employees donated their blood and 26 people registered for marrow donation. While blood donation cooperation has been continued for years, marrow donor registration began 2002. At that time, the management listened to a certain employee having a child cured from leukemia with bone marrow transplantation keep advocating understanding of marrow donor registration within the company, and decided to pick it up for part of social activities.   *  "Mitsui Sumitomo Insurance Presents Shirakawa Hall Charity Concert" (March 17)     The charity concert with a subtitle "Stylish & Cool / Longing for Spring Wind" was held for the second time at Shirakawa Hall, a hall for classical music only, "by the sponsors of Yamaha Music Foundation and MSI Saturday March 13th. The profit from the concert and the donations collected at the venue plus contribution from "Smile Heart Club," social contribution body of volunteer members in the MSI group totaled to 938,528 yen, and the fund was donated to Japan Marrow Donor Program, a foundation supporting patients suffering from intractable blood diseases such as leukemia, following the first concert's case in 2002. MSI Amateur Sportswomen     *  Women's Marathon and Long Distance     Nagoya International Women's Marathon, Aichi Prefecture, Japan (March 14) Reiko Tosa finished first with a good record of 2:23:57, and on the following day, she was selected to join Japan's national team to Athens for this winning.     *  Women's Judo     International Judo Tournament Moscow, Russia, January 24 Hitomi Tokuhisa was the second finisher of the women's 63-kg class in the tournament. 2004 Paris Open International Judo Tournament, France, February 7 to 14 Yuki Yokosawa, who fought her way with "ippon" or outright victory in every match to the final game, unfortunately lost a close match, finishing the second in the tournament. Otto World Cup P, Hamburg, Germany, February 21 to 22 Yoshie Ueno in the 63-kg class advanced to the final game, beating strong competitors, In the final game, she earned a golden score in the extension for her first title of the cup.