April 6, 2007 MS Quarterly News (4th Quarter, Fiscal 2006) Mitsui Sumitomo Insurance Co., Ltd. (“MSI”) hereby issues a quarterly newsletter containing a summary of the topics for the fourth quarter, fiscal 2006, from January to March 2007 as set forth below. Sales performance (preliminary for the quarter from January to March 2007, with long-term medical insurance included in Personal Accident and Total accounts) The fourth quarter saw revenues declined, following the third quarter, by an about ten billion yen or 3.2 percent from a year before, still with some aftereffects associated with the administrative disposition on the operation results again. Consequently, annual total revenue fell 1.9 percent to 25.2 billion yen. (premiums in million yen) Lines of insurance Q4 (Jan to Mar, 2007) Year to date (Apr 06 to Mar 07) Premiums Growth rate (%) Premiums Growth rate (%) Voluntary Automobile 134,460 -2.0 558,526 -2.1 CALI* 46,567 -2.1 171,440 -0.8 Fire 50,199 -3.5 201,885 -2.2 Personal Accident 30,268 -13.2 121,557 -6.9 Miscellaneous 34,468 -4.4 162,743 -2.1 Cargo and Transit 16,991 3.7 67,959 4.4 Hull 5,324 15.9 25,705 9.0 Total 318,276 -3.2 1,309,815 -1.9 *CALI:Compulsory Automobile Liability Insurance Selected News Releases (January – March 2007) announcement date in parenthesis (1)  Business Improvement Plan   *  Status of Business Improvement Plan reported (Jan 19)     MSI submitted the sixth report on the progress of the Business Improvement Plan (“BIP”) to the Financial Services Agency (“FSA”) of Japan.   The report dealt with the Compliance Enhancement Month campaign which was to run from January to February as one of its new specific measures for January.   Following the Aug –to- Sep 2006 one, the campaign was to overhaul solicitation matters and to improve fundamentally the head office’s control and supervision over the overseas network.   *  Propriety Review of Fire Insurance Solicitation (Jan 31)     MSI framed a schedule for reviewing the system supporting appropriate fire insurance solicitation pursuant to the request by the FSA, dated December 20, 2006, and reported the schedule.   According to the schedule, MSI was to analyze the data of fire insurance policies in force and retrieve all those out of them for which premiums may be improperly applied due to incorrect recognition of structural grade of insured buildings and/or failure to recognize discount applicable thereto or whose buildings may be over-insured.   And all these detected policies were to be examined by March 2007.   In addition, checking procedures were reported to be introduced fiscal 2007, according to which an agent should make explanation to and confirmation with a customer as guided by a check sheet.   *  Conclusion of investigation regarding failures to properly pay claims of extraordinary expenses coverage (Feb 15)     MSI concluded the investigation regarding failures to properly pay claims for extraordinary and other incidental expenses under Extraordinary Expenses Coverage, and submitted a report on the matter to the FSA pursuant to its order dated November 17, 2006 calling for such report.   *  Status of BIP reported (Feb 21)     MSI submitted the seventh report on the progress of the BIP to the FSA.   The report contained the ongoing specific measures taken for strengthening its internal administration systems and reinforcing personnel for this purpose, altering the system to prevent claims form inappropriate non-payments, reviewing the routine operations to secure their proper performance.   *  Business Suspension Order of Third-sector Products Lifted (Feb 23)     The FSA lifted the business suspension order in respect of conclusion and solicitation of third-sector insurance products and application for approval of a new product, effective February 23, 2007. Taking the administrative disposition dated June 21, 2006 serious, MSI had formulated a business improvement plan, which was designed to fundamentally improve and strengthen its systems of administration of claims payment, product development, customer protection and convenience, corporate governance and legal compliance since then.   We implemented it with utmost effort to re-gain trust from customers, other stakeholders and interested parties.   The major specific measures, including these, and their performance were also reported to the FSA on this occasion.   *  Status of BIP reported (Mar 20)     MSI submitted the eighth report on the progress of the BIP to the FSA.   This report contained the “disease insurance training,” which had been conducted in preparation to resume the sales of third-sector insurance policies and for the related matters.   Also included were the follow-up of the failures to properly pay claims for extraordinary and other incidental expenses, part of which had been reported to the FSA on February 15, as well as the total review of the fire insurance policies in force as to whether premiums had been improperly applied for due to incorrect recognition of structural grade of insured buildings and/or failure to recognize discount applicable thereto .   The report disclosed a summary of “New Challenge 10,” the new medium-term management plan, under which MSI intend to put the first priority on improving the corporate quality as a driver for competitiveness. (2)  Products and Services   *  IRR gave case study seminar on BCM (Jan 1)     Inter-Risk Research Institute & Consulting Inc. (“IRR”), a member of the MSI group, held a case study seminar about business continuity management (“BCM”) on February 2.   Amid the backdrop of increasing interests in BCM among both private companies and governmental and public entities, this seminar invited the lecturers of case studies from various industries that would serve as a model case of BCM.   It opened with a keynote address, which referred to the recent development of standardizing BCM for an ISO certificate based on the draft BS25999-1, “2006 Code of Practice for Business Management,” formulated by the British Standards Institution last November. (3)  Life Insurance   *  MS Kirameki changed to delivery record mail for sending policies to customers (Feb 16)     Mitsui Sumitomo Kirameki Insurance Co., Ltd. (“MS Kirameki”) used to send policies to policyholders by ordinary mail and changed it by delivery record mail effective February 19.   Also, to those policyholders who have signed two or more policies and like to have the policies sent altogether in a delivery, such arrangement would become available soon.   *  MS Kirameki introducing revised rate tables April 2007 (Mar 5)     MS Kirameki revised the rate tables of almost all kinds of policies on its lineup, and would apply so revised rates to new policies effective April 2.    The revision associates mainly with that of the mortality table prescribed in the standard lifetime applicable to life insurance, which provides one of the calculation bases for standard underwriting reserve. Taking this opportunity, certain policy products and their policy clauses were revised, too.   *  MS Kirameki launching new cancer insurance (Mar 7)     MS Kirameki released the new cancer insurance April 2, 2007, by modifying the conventional one with broader coverage and better product features.   After more than six years have passed since the MSI Group began to handle cancer insurance policies January 2001, the social environment has changed due to advancing medical technology, altering the public medical insurance program, increasing cancer patients in hospital and so on.   By this revision, MS Kirameki offers products of better features to respond such social changes and to so meet customers’ needs. (4)  Environmental and Social Contribution Activities   *  MSIG presented textbooks to Indonesian children suffered from earthquake (Feb 8)     January 30, 2007, MSI and P.T. Asuransi Mitsui Sumitomo Indonesia, its subsidiary in Indonesia, presented 7,600 copies of textbooks to the pupils of 27 primary schools located within the neighborhood of Balian, Yogyakarta special state, which is close to the epicenter of the earthquake that took place in the central Java island May 2006, for the purpose of offering aids to them and for reconstruction of the area.   This was the second time, following the present of shoes to the children of ten primary schools in the same area last June.   On that day, a presentation ceremony was held at the First Balian School, one of the 27 schools, and the textbooks were handed over to the children together with messages sent from employees of the MSI G to encourage them for recovering from the damages.   *  MSI Cultural Foundation selected co-sponsors and subsidy recipients for fiscal 2007 (Feb 26)     Mitsui Sumitomo Insurance Cultural Foundation, MSI’s social contribution organ, selected 31 municipal co-sponsors that wish to hold "Concerts for Local Community" at their own halls and 12 amateur bodies as "recipients of subsidy for cross-national cultural activity."   The foundation subsidizes cultural activities in the areas such as music and folklore performing arts to help local communities promote their cultural activities and cross-national communications, and thereby intends to contribute itself to cultural evolution and prosperity in Japan. (5)  Other Topics   *  MSI acquiring shares of Mitsui Direct General Insurance Company, Limited (Feb 13)     MSI resolved at the meeting of its Board of Directors held on February 13, 2007, that it should subscribe for new shares of stock that Mitsui Direct General Insurance Company, Limited (“MDGI”) planed to issue in March 2007 for its capital increase and also that it would acquire some of MDGI's outstanding shares. Amateur Sports     *  Women's Marathon and Track     28th Matsue Ladies' Half Marathon, Matsue, Japan, March 18 Ikuyo Yamashita and Chiaki Ohsaki, a rookie runner, took part, and Ohsaki won the race with a new record of 1h9m25s while Ymashita earned the fifth prize.