April 10, 2008 MS Quarterly News (4th Quarter, Fiscal 2007) Mitsui Sumitomo Insurance Co., Ltd. ("MSI") hereby issues a quarterly newsletter containing a summary of the topics in the fourth quarter of fiscal 2007, from January to March 2008 as set forth below. Sales performance (preliminary for the quarter from January to March 2008, with long-term medical insurance included in the Personal Accident and Total accounts) Although the fourth quarter saw total premium revenues decreased on a year-on-year basis mainly due to the effects of the revised premium rates of the compulsory automobile liability insurance which became valid in April 2008, the annual premiums slightly increased by 0.53 billion yen (or 0.0 percent) from the previous fiscal year. (premiums in million yen) Lines of insurance Q4 (Jan to Mar, 2008) Year to date (Apr 07 to Mar 08) Premiums Growth rate (%) Premiums Growth rate (%) Voluntary Automobile 132,058 - 1.7 547,797 - 1.9 CALI* 42,900 - 7.7 170,962 - 0.2 Fire 48,392 - 3.5 201,170 - 0.3 Personal Accident 30,857 2.6 122,901 1.1 Miscellaneous 35,070 0.9 168,263 3.5 Cargo and Transit 17,167 - 0.9 71,152 4.7 Hull 4,756 - 10.7 27,653 7.6 Total 311,200 - 2.3 1,309,898 0.0 *CALI:Compulsory Automobile Liability Insurance Selected News Releases (January to March 2008) announced on the parenthesized date (1)  Business Improvement Plan   *  Status of Business Improvement Plan reported (Jan 21)     MSI submitted the 14th report on the progress of the Business Improvement Plan to the Financial Services Agency of Japan.   The report dealt with the actions to improve and strengthen the corporate governance and the claims handling systems, together with some references to the enhancement steps of compliance education to employees and agents, the assembly of the Council on Promotion of Customers' Viewpoint, the check-up for appropriateness in determination on the cases pre-determined as misconducts. (2)  Domestic Non-life Insurance   *  MSI created “GK” brand to cover personal product lines generally (Jan 22)     MSI created the “GK” brand, carrying its hope to be “your reliable goalkeeper” in it, and promotes it as a family brand for all its personal product lines.   The GK brand covers not limited to MSI’s personal lines such as automobile and fire policies, but will extend to include MS Kirameki’s life products in future. The first product under this brand name is “GK Kuruma no Hoken,” an easy-to-understand automobile insurance, and is scheduled to launch in May 2008 for policies effective July 2007.   This car policy, so easy to understand and to make a decision to purchase, offers a guide tool designed in a way that a policyholder will “just read it, and you will get it with no help.” In addition, it is more attractive than conventional types, providing more benefits to safe drivers. (3)  Overseas Business   *  Overseas business completed shifts to regional holding company system (Jan 11)     MSIG Holdings (Europe) Limited was established officially effective January 1, 2008, based on the permissions obtained from the competent authorities of Japan and the U.K.   This was MSI’s final step in the shift of the group’s overseas business to put it under the system of the three regional holding companies in Asia, the Americas and Europe for strengthening regional operations. Under the new system, the overseas business continues to devote its energy to increase corporate value.   MSIG plans the overseas business will account for 20 percent of an annual Group Core Profit, which is set 100 billion or more for fiscal 2010 in New Challenge 10, its mid-term management plan.   *  Taiwan subsidiary, Mingtai, won 2008 Ideal Brand award (Jan 29)     Mingtai Fire & Marine Insurance Co., Ltd., MSI’s wholly-owned subsidiary in Taiwan, was awarded a 2008 Ideal Brand award.   Taking this opportunity, Mingtai renewed its commitment to seek for higher customer satisfaction in the risk solution business, and will enhance its brand image and challenge to win this long-established and recognized award in Taiwan again. (4)  Financial Services and Risk-related Businesses   *  RM Check, free assessment of risk control, started in service (Feb 15)     Inter-Risk Research Institute & Consulting Inc. (“IRRIC”), MSI’s risk management consulting arm, launched “RM Check” in April.   This free risk control assessment is offered to those corporate customers which have many group companies and/or business partners.   Risk control over group companies and/or business partners is one of the big issues of corporate management.   MSIG is going to propose RM Check, which enables speedy monitoring of risk control situation and offers support in taking necessary measures, to not only MSIG’s existing corporate customers but other companies in necessity of such service.   *  IRRIC provides Positive Motivation Consulting (Mar 14)     IRRIC, one of the MSIG companies, and EAP Soken jointly developed Positive Motivation Consulting (“PMC”) for higher motivation of human assets such as employees in order to raise productivity and safety.   Commercial service of PMC would become available in April.   This consulting service identifies any risks that some trouble may be induced by motivation lowered within a company organization, and helps the company build a motivation management system which encourages its employees to work positively in line with company’s objectives.   Thus the PMC service will work as a catalyst in increasing its corporate value. (5)  Environmental and Social Contribution Activities   *  7th lecture of Citizens’ Environmental Course held (February 6)     The seventh lecture of the Citizens’ Environmental Course was given open to public, particularly residents in the neighborhood of the MSI Surugadai Building and people interested in urban greenery and environmental activities.   The guest speaker was Mr./Dr. Fumiaki Fujibe, Head of the Third Research Office, Forecast Research Department, the Meteorological Research Institute (MRI) of the Japan Meteorological Agency.   He gave a lecture on the effects of the global warming and the “urban heat island” phenomenon on the global environment.   The MSI Surugadai Building has deliberately worked on environmental improvement in its neighborhood and harmonization with its surrounding scenery since its ground breaking in 1984.   It continues the Citizens’ Environmental Course to seek environmental efforts together with the general public, including its neighbors.   *  MSI Cultural Foundation selected co-sponsors and subsidy recipients for fiscal 2008 (Nov 14)     Mitsui Sumitomo Insurance Cultural Foundation, one of MSI’s organs for social contribution activities, selected 32 municipal co-sponsors in the “Concerts for Local Community” and 12 amateur bodies as “recipients of subsidy for cross-national cultural activity,” and will open a ceremony for the beneficiaries on April 10.   This foundation subsidizes cultural activities in the fields such as music and folklore performing arts to help local communities promote their cultural activities and increase locally-based cross-national communications, and thereby intends to contribute itself to cultural evolution and prosperity in Japan. (6)  Other Topics   *  Headquarters getting together in Surugadai (Nov 30)     The headquarters, currently located dividedly in Shinkawa, Chuo-ward, Tokyo and Kanda Surugadai, Chiyoda-ward, Tokyo, are merging in the Surugadai Building by spring 2013.   The Surugadai annex building is going to be re-constructed, and the Surugadai main building will be renovated and improved.   With all the functions relocated and combined there, the headquarters are expected to increase communications and collaborations among their divisions and improve their operational efficiency.   In  the efforts to get rooted in Kanda Surugadai, they will act for community re-vitalization, more green spots, lower environmental burdens and other initiatives together with the surrounding area.   *  Clerk Re-employment System opened more widely (Feb 1)     MSI revised the “back-in-work qualifications” provided in the re-employment program of retirees who were permanent clerks in order to increase eligible retirees, and made the new qualifications effective April 2008.   Re-employment opportunities will be increased in such ways as raising the re-employable age or determining a post-retirement period flexibly.   The revision particularly targets those retired women who are eager to work again and have raised children. In addition, the new qualifications also apply similarly to those women candidates who left other non-life insurers in order to hire well-experienced persons under favorable conditions.   MSI is positive to improvement of working environment, and has already introduced such personnel programs as helping part-timers and temporary workers develop their careers as permanent employees or as allowing a married clerk to move to the area where his/her spouse is re-assigned to work.   This revised re-employment qualifications constitute a part of the serial steps in improving working environment for higher job satisfaction, and the path will not cease here.   *  Cross-divisional/border Training Program set up (Feb 20)     The scope of the Cross-divisional Training Program, which provides employees an opportunity to work as a trainee for a short term in a field he/she has not experienced was enlarged.   The program had initiated in January 2007 for the purpose of better inter-divisional understanding and wider open multi-divisional career path.    In the second half of fiscal 2007, the posts applicable in the head office were increased from 62 to 92, or almost 50 percent, and the program contributed to mutual understanding between the head office and the sales and claims handling divisions.   In fiscal 2008, the first similar attempt was made between domestic and overseas divisions, marking a beginning of sharing job expertise on a global scale within MSI.   It is expected that, through this program, mutual understanding and sharing common values will permeate among employees, and that it will lubricate the wheels of initiatives to improve corporate quality.