MILLEA HOLDINGS, INC.

The number of consolidated subsidiaries:

The number of non-consolidated subsidiaries accounted for by the equity method:

The number of affiliates accounted for by the equity method:

6-K 1 k00583e6vk.htm MILLEA HOLDINGS, INC. MILLEA HOLDINGS, INC.

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934

Dated December 29, 2003

Commission File Number: 0-31376

MILLEA HOLDINGS, INC.

(Translation of Registrant’s name into English)

Otemachi First Square, 1-5-1 Otemachi, Chiyoda-ku
Tokyo 100-0004, Japan
(Address of principal executive offices)

Indicate by check mark whether the Registrant files or will file
annual reports under cover of Form 20-F or Form 40-F:
Form 20-F x Form 40-F o

Indicate by check mark whether the Registrant by furnishing
the information contained in this form is also thereby furnishing
the information to the Commission pursuant to Rule 12g3-2(b) under
the Securities Exchange Act of 1934.
Yes o No x

TABLE OF CONTENTS


SIGNATURES
Announcement of the Proposed Acquisition of Skandia Life Insurance Co. (Japan) Limited
Summary of Consolidated Business Results of Millea Holdings, Inc. under Japanese GAAP for the Six Months Ended September 30, 2003
Summary of Non-Consolidated Business Results of Millea Holdings, Inc. under Japanese GAAP for the Six Months Ended September 30, 2003
Summary of Non-Consolidated Business Results of Tokio Marine under Japanese GAAP for the Six Months Ended September 30, 2003

Table of Documents Submitted

Item

1. Announcement of the proposed acquisition of Skandia Life Insurance Co. (Japan) Limited, dated December 24, 2003.

2. Summary of consolidated business results of Millea Holdings, Inc. under Japanese GAAP for the six months ended September 30, 2003

3. Summary of non-consolidated business results of Millea Holdings, Inc. under Japanese GAAP for the six months ended September 30, 2003

4. Summary of non-consolidated business results of The Tokio Marine and Fire Insurance Company, Limited under Japanese GAAP for the six months ended September 30, 2003

FORWARD-LOOKING STATEMENTS

The information contained in this Form 6-K includes certain forward-looking statements that are based on our current expectations, assumptions, estimates and projections about our businesses and operations. These statements contain projections of results of operations or financial condition. These forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may materially differ from those contained in the forward-looking statements as a result of various factors. Important factors that might cause a material difference include, but are not limited to: general economic conditions in Japan or elsewhere; business conditions in the insurance industry in Japan or elsewhere; the regulatory environment, new legislation, competition with other insurance companies, changing technology and evolving insurance industry standards; changes in the composition of our subsidiaries’ financial instruments that are subject to market risk, including without limitation as a result of ordinary financing and investment decisions or as a result of changes in strategy or regulation; changes in the volatility of particular instruments or groups of instruments, including without limitation as a result of economic developments in Japan or elsewhere, or changing political conditions, or the increasing liquidity of international securities markets; deviations of the actual behavior of particular markets from those that are indicated by statistical models used by our subsidiaries, which of necessity rely on a number of assumptions and approximations; and deviations of actual loss experience from the results that might be indicated by statistical analysis. For a discussion of these and other factors which may have a material impact upon our financial condition, results of operation and liquidity, see “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our annual report on Form 20-F for the fiscal year ended March 31, 2003.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	KABUSHIKI KAISHA MILLEA HOLDINGS (Millea Holdings, Inc.)

December 29, 2003	By:	/s/ Tetsuya Unno General Manager of Corporate Legal and Risk Management Department

Item 1
[English translation]
December 24, 2003

Millea Holdings, Inc.
5-1 Otemachi 1-chome,
Chiyoda-ku, Tokyo
(TSE Code: 8766)

Announcement of the Proposed Acquisition of
Skandia Life Insurance Co. (Japan) Limited

Millea Holdings, Inc. (“Millea Holdings”) and Skandia Insurance Company Ltd. (publ.) (“Skandia (Sweden)”) have been in discussions regarding the acquisition of Skandia Life Insurance Company (Japan) Limited (a wholly owned subsidiary of Skandia (Sweden), hereinafter referred to as “Skandia Japan”) and have reached an agreement as described below.

The Board of Directors of Millea Holdings today approved the proposed acquisition of all outstanding shares of Skandia Japan by Millea Holdings’ wholly owned subsidiary, The Tokio Marine and Fire Insurance Company, Limited (“Tokio Marine”), subject to the approval of the Financial Services Agency.

Objective of the acquisition
We believe that the variable annuity business in Japan has significant growth potential. The acquisition would enable us to enter the variable annuity market rapidly by leveraging the expertise and existing infrastructure of Skandia Japan, an established leader in the variable annuity market. Millea Group intends to strengthen the variable annuity business aggressively through various measures, such as expanding sales through financial institutions.

Overview of the transaction


Target shares:		All outstanding shares of Skandia Japan
Seller:		Skandia (Sweden)
Buyer:		Tokio Marine
Price:		JPY 20 billion
Date of acquisition:		Around January / February 2004 (tentative)

Overview of Skandia Japan
(The following data is as of March 31, 2003)


Address:		Hiroo Plaza, 5-6-6 Hiroo, Shibuya-ku, Tokyo
Description of business:		Life insurance business
		(Primary products: variable insurance and individual variable annuity)
Establishment:		August 1996
Total assets:		JPY 101.4 billion
		(Separate account: JPY 94.9 billion)


Paid-in capital:		JPY 15 billion
Premium income:		JPY 161.7 billion (year on year change 487.9%)
Policies in force:		JPY 361.3 billion (year on year change 137.8%)
Individual insurance:		JPY 277.1 billion (year on year change 123.0%)
Individual annuity:		JPY 84.1 billion (year on year change 227.8%)
New policies:		JPY 131.5 billion (year on year change 131.1%)
Individual insurance:		JPY 71.0 billion (year on year change 94.5%)
Individual annuity:		JPY 60.4 billion (year on year change 240.7%)
Solvency margin ratio:		13,969.2%
Net income:		JPY -3.9 billion
Organization
Employees:		134
Agents:		840

Overview of Skandia (Sweden)

Location of headquarters:		Stockholm, Sweden
Description of business:		Global financial / insurance group (specializing in variable annuity / insurance)
Establishment:		January 12, 1855
Employees:		Approximately 6,200
Clients:		Approximately 3 million clients

Impact on Financial Results
We do not expect the acquisition to affect the forecast of business results announced on November 27, 2003.

We intend to announce information regarding the name and the organizational structure that Skandia Japan will adopt subsequent to the acquisition in due course.

For further information, please contact:

Millea Holdings, Inc.
Corporate Planning Dept., Corporate Communications Group
Masayuki Ito (Tel 03-6212-3341)

Item 2
[English translation]

November 27, 2003

Summary of Consolidated Business Results of Millea Holdings, Inc. under Japanese GAAP
for the Six Months Ended September 30, 2003


Contact:		Masayuki Ito, Corporate Planning Dept., Millea Holdings, Inc. Phone 03-6212-3341
		Satoshi Tsujigado, Corporate Finance Dept., Millea Holdings, Inc. Phone: 03-6212-3343

1. Consolidated Business Results for the Six Months ended September 30, 2003

(from April 1, 2003 to September 30, 2003)

(1) Consolidated Results of Operations


	(Yen in millions except per share data and percentages)

	For the six months ended
							For the year ended
	September 30, 2003			September 30, 2002			March 31, 2003

Ordinary income		1,383,265			1,417,981			2,929,011
(change from corresponding period of the previous year)		(2.4	)%		—	%		—	%
Operating profit		100,215			127,198			100,872
(change from corresponding period of the previous year)		(21.2	)%		—	%		—	%
Net income		59,537			83,247			56,616
(change from corresponding period of the previous year)		(28.5	)%		—	%		—	%
Net income per common share — Basic (Yen)		32,331.22			44,977.68			30,588.58
Net income per common share — Diluted (Yen)		—			—			—


Notes:	1.	Investment income and expenses on equity method:
		For the six months ended September 30, 2003	(863	)	million yen
		For the six months ended September 30, 2002	328		million yen
		For the year ended March 31, 2003	737		million yen
	2.	Average number of shares outstanding:
		For the six months ended September 30, 2003	1,841,478		shares
		For the six months ended September 30, 2002	1,850,852		shares
		For the year ended March 31, 2003	1,850,248		shares
	3.	Change in accounting method:	None
	4.	Percentage figures show increase or decrease in ordinary income, operating profit and net income from the previous period

(2) Consolidated Financial Conditions

(Yen in millions except per share data and percentages)

For the six months ended

For the year ended

September 30, 2003

September 30, 2002

March 31, 2003

Total assets

10,372,419

9,835,655

9,945,809

Stockholders’ equity

2,019,322

1,927,753

1,804,933

Ratio of Stockholders’ equity to total assets

19.5

19.6

18.1

Stockholders’ equity per share (Yen)

1,109,026.87

1,041,542.08

976,079.67


Note:	Number of shares issued:
	At September 30, 2003	1,820,805 shares
	At September 30, 2002	1,850,864 shares
	At March 31, 2003	1,849,145 shares

(3) Consolidated Cash Flows


	(Yen in millions)

	For the six months ended
							For the year ended
	September 30, 2003			September 30, 2002			March 31, 2003

Cash flows from operating activities		206,577			137,745			443,205
Cash flows from investing activities		(21,259	)		(93,350	)		(680,493	)
Cash flows from financing activities		12,188			(9,853	)		16,344
Cash and cash equivalents at end		1,140,887			1,164,905			932,064

(4) Scope of Consolidation and Application of Equity Method

(5) Change in the Scope of Consolidation and Application of Equity Method

Consolidated subsidiaries. Newly included: 1 Excluded: 0
Companies accounted for by the equity method. Newly included: 0 Excluded: 0

2. Consolidated Business Forecast for the year ending March 31, 2004

(from April 1, 2003 to March 31, 2004)


	(Yen in millions)

Ordinary income	Ordinary profit		Net income

2,770,000		119,000		62,000

Net income per share forecasted for the year ending March 31, 2004: 34,050.85 Yen

Attachment

The Millea Group

Millea Holdings, Inc. (Millea Holdings) was formed on April 2, 2002 as the holding company for The Tokio Marine and Fire Insurance Company, Limited (Tokio Marine) and The Nichido Fire and Marine Insurance Company, Limited (Nichido Fire) in a statutory share transfer under Japanese law.

The Millea Group’s businesses include its property and casualty business (including property and casualty business, property and casualty related businesses, financial service and asset management related business) and its life insurance business.

Principal subsidiaries of Millea Holdings are as follows.

Millea Holdings, Inc. (Insurance holding company)

Property and casualty business

*The Tokio Marine and Fire Insurance Company, Limited

*The Nichido Fire and Marine Insurance Company, Limited

*Trans Pacific Insurance Company

*Tokio Marine Europe Insurance Limited

*Tokio Marine Global Re Limited

*The Tokio Marine and Fire Insurance Company (Singapore) Pte. Limited

*The Tokio Marine and Fire Insurance Company (Hong Kong) Limited

*Tokio Marine Brasil Seguradora S.A.

*Tokio Millennium Re Ltd.

#First Insurance Company of Hawaii, Ltd.

Financial service and asset management related businesses

*Nichido Investment (Luxembourg) S.A.

Other business

*Millea Asia Pte. Ltd.

Life insurance business

*Tokio Marine & Nichido Life Insurance Co., Ltd.

Other businesses

Securities investment advisory business and securities investment trusts business

*Tokio Marine Asset Management Co., Ltd.

Derivatives business

*Tokio Marine Financial Solutions Ltd.

Staffing business

*Tokio Marine & Nichido Career Service Co., Ltd.

* Consolidated subsidiaries

# Investment accounted for by the equity method

(Note) On October 1, 2003, The Tokio Marine Life Insurance Company, Limited and The Nichido Life Insurance Company, Limited merged and became Tokio Marine & Nichido Life Insurance Co., Ltd.

Management Policies

1. Group management policies

Millea Holdings aims to turn the Millea Group into a leading global insurance group. As a management policy, Millea Holdings aims to meet the “security and safety” needs of all of its customers by taking advantage of the strengths and characteristics of each of its subsidiaries.

2. Policy on profit distribution

When apportioning profits in respect of any given fiscal year, we expect to pay stable dividends on our common stock taking into consideration the Group’s performance and its expected future business environment, subject to having retained earnings and to providing sufficient capital to meet our business needs.

3. Policy on reduction in the size of minimum investment unit

We believe that there is currently no need to reduce the size of the minimum investment unit of Millea Holdings shares in light of their liquidity and from a cost-benefit point of view. However, taking into consideration the needs of investors, we intend to study further whether such reduction would be necessary in the future.

4. Management objectives

The Group intends to further increase earnings of the domestic P&C insurance business and to expand the life insurance, overseas insurance and asset management businesses, thereby seeking to improve profitability and growth potential in a stable and continuous manner. The group aims to achieve an ROE level of around 6%, and adjusted earnings of approximately 160 billion yen by FY2005.

(Note) The above target ROE and earnings are based on “adjusted earnings”, which are calculated by the following method.


		- Adjusted ROE = Adjusted earnings / Adjusted capital

		- Adjusted Earnings
		(a)		P&C insurance business
				Adjusted earnings = Net income + Provision for extraordinary reserves + Provision for reserves for price fluctuation — Gains (losses) from assets under asset liability management — Gains (losses) from stocks and properties — Other extraordinary items
		(b)		Life insurance business
				Adjusted earnings = Increase in embedded value (sum of value of in-force business and shareholder equity of a life insurance company)
		(c)		Overseas insurance business and other businesses
				Net income as shown in financial statements

		- Adjusted Capital
		(a)		P&C insurance business
				Adjusted capital = Capital + Extraordinary reserves (net of tax) + Reserves for price fluctuation (net of tax) — Increase (decrease) in capital from asset liability management
		(b)		Life insurance business
				Adjusted capital = Embedded value
		(c)		Overseas insurance business and other businesses


				Capital as shown in financial statements

5. Mid- to long-term business strategies

The Group aims to meet the “security and safety” needs of all of its customers. While continuing to enhance the strengths and special characteristics of each Group company, we plan to continue to take on new challenges to increase earnings from our core insurance businesses and to expand our operations into new areas that we believe offer significant growth potential and profitability. We will also seek to optimize the allocation of our management resources throughout the Group in order to build the optimum business portfolio that delivers strong profitability, growth potential and high capital efficiency. By pursuing the above, we aim to maximize the corporate value of the entire Group.

(1) Enhance earnings from the core businesses
The Group will work to generate greater earnings from its core domestic P&C and life insurance businesses. In particular, in our domestic P&C insurance business, we intend to pursue the synergies and greater efficiency offered by the merger of Tokio Marine and Nichido Fire. We will endeavor to develop new products and consolidate our sales networks. With these measures, we intend to further bolster competitiveness and improve our earnings.

Specifically, we plan to integrate products, administrative processes, systems and other infrastructure as well as to integrate corporate functions, sales offices and claims offices, thereby seeking further improvement in management efficiency. At the same time, we aim to ensure mid- to long-term growth by developing new products, and by enhancing our risk consultation services. We will also aim to achieve greater efficiency by developing new business models for our sales activities and by expanding our agencies.

The Group management strategy also focuses on the expansion of the domestic life insurance business. We intend to strengthen the earnings potential and further promote the development of this business.

(2) Expand business domains
The Group will endeavor to transform its current earnings structure, centered on its domestic P&C insurance business, to secure new sources of revenues and to diversify business risks.

While aggressively promoting the expansion of the domestic life insurance business, we will also seek to develop other businesses that can generate strong synergies with both our domestic P&C and life insurance businesses. These businesses will include the overseas insurance business, the asset management business and health care and senior citizen-related businesses.

(3) Improve capital efficiency
We closely monitor and manage our capital and risk through the integrated risk management system. In addition, we introduced a capital allocation system to reallocate capital to businesses with high profitability, thereby aiming to improve the Group’s capital efficiency. We intend to invest surplus capital in sustainable new businesses with high profitability and growth potential. We intend to use excess surplus capital for measures that improve capital efficiency, including share buy backs.

Through the above initiatives, we aim to build an optimum business portfolio, which will enable us to seek continuous growth of profit and improvement in ROE. We aim to enhance the corporate value of the Group and become a leading insurance group not only in Japan, but also in the global market.

Business results and financial condition

1. Business results

(1) Consolidated results of operations for the six months ended September 30, 2003

During the six months ended September 30, 2003, elements of concern such as sluggish consumer spending persisted in the Japanese economy and no clear signs of recovery were seen; nevertheless, there were several elements of improvement, including a favorable turn of the export environment and an increase in capital investment.

Under these challenging conditions, despite our efforts to improve performance centered on the P&C and life insurance businesses, our operating results for the six months ended September 30, 2003 were as follows:

Compared to the six months ended September 30, 2002, ordinary income decreased by 34.7 billion yen to 1,383.2 billion yen, the main components of which were 1,293.9 billion yen in underwriting income and 75.4 billion yen in investment income.

Compared to the six months ended September 30, 2002, ordinary expenses decreased by 7.7 billion yen to 1,283.0 billion yen, which mainly comprised of underwriting expenses of 1,083.6 billion yen, investment expenses of 9.3 billion yen, and underwriting and general administrative expenses of 1,283.0 billion yen.

As a result, ordinary profit decreased by 26.9 billion yen to 100.2 billion yen. Net income, comprising ordinary profit plus extraordinary profit minus extraordinary losses, income taxes and deferred income taxes decreased by 23.7 billion yen to 59.5 billion yen.

The results from our principal business segments were as follows:

In the P&C insurance business, while there was an increase in net premiums written due partly to the effects of the abolition of government reinsurance for Compulsory Automobile Liability Insurance, such increase was offset by a decrease in returns on disposals of securities, which had been comparatively high in the six months ended September 30, 2002 as a result of gains realized in connection with contributions of securities made to an exchange traded fund, resulting in a 68.7 billion yen decrease in ordinary income to 1,201.1 billion yen.

On the other hand, ordinary expenses fell 41.6 billion yen to 1,103.1 billion yen due partly to a decrease in the valuation losses of securities. As a result, ordinary profits decreased 27 billion yen to 97.9 billion yen.

In the life insurance business, there was a 24 billion yen increase in ordinary income to 181.4 billion yen due mainly to increased life insurance premiums, but ordinary expenses increased 24 billion yen to 179.4 billion yen owing partly to an increase in the amount set aside for liability reserves. As a result, ordinary profit was 1.9 billion yen, unchanged from the previous term.

(2) Consolidated business forecast for the fiscal year ending March 31, 2004

Our consolidated business forecast for the fiscal year ending March 31, 2004 is 2,770.0 billion yen in ordinary income, 119.0 billion yen in ordinary profit and 62.0 billion yen in net income.

Our forecast is primarily based on the following assumptions.

- With regard to net premiums written, the forecast is based on our own projection taking into consideration the results for the six months ended September 30, 2003 and of previous years, and also reflecting the impact of revisions to Compulsory Automobile Liability Insurance regulations.

- With regard to net claims paid, we anticipate payment of natural disaster-related claims in the amount of 18.0 billion yen for Tokio Marine and 3.0 billion yen for Nichido Fire, taking into consideration the results for the six months ended September 30, 2003 and of previous years.

- With regard to interest rates, exchange rates and equity market conditions, we assume there will not be significant change from market rates and conditions as of September 30, 2003.

2. Financial condition

As of September 30, 2003, consolidated total assets were 10,372.4 billion yen. This represents an increase of 426.6 billion yen due partly to an increase in unrealized gains in securities resulting from rising equity prices.

Cash flows for the six months ended September 30, 2003 were as follows. Net cash provided by operating activities was 206.5 billion yen, an increase of 68.8 billion yen compared to the six months ended September 30, 2002, due mainly to an increase in net premiums written and life insurance premiums. Net cash used in investing activities increased 72 billion yen to 21.2 billion yen mainly as a result of decreased acquisition of securities. Due largely to the issuance of corporate bonds and bond lending, net cash flow in financing activities increased 22 billion yen to provide income of 12.1 billion yen.

As a result, the balance of cash and cash equivalents at the end of the term stood at 1,140.8 billion yen, a 208.8 billion yen increase compared to the six months ended September 30, 2002.

The equity ratios and market-value basis equity ratios are shown below.


	(%)

	Six months ended		Six months ended		Fiscal year ended
	September 30, 2003		September 30, 2002		March 31, 2003

Equity ratios		19.5		19.6		18.1
Market-value basis equity ratios		22.1		18.4		13.7

Note 1. The “equity ratio” is defined by “stockholders’ equity”/“total assets” × 100.

Note 2. The “market-value basis equity ratio” is defined by “market capitalization”/“total assets” × 100.

Note 3. As the Group’s main business is insurance, the following items are not stated: “interest coverage ratio” and “term of debt
retirement.”

Consolidated premiums and claims paid by line for the six months ended September 30, 2003

Net premiums written

(Yen in millions, %)

For the six months ended

% of net

September 30, 2003

September 30, 2002

change

Amount

(A)

Ratio

(B)

Ratio

((A)-(B))/(B)

Fire and allied lines

121,960

12.7

121,881

13.2

0.1

Hull and cargo

33,376

3.5

30,944

3.4

7.9

Personal accident

84,063

8.7

83,672

9.1

0.5

Voluntary automobile

440,569

45.8

449,645

48.7

(2.0

)

Compulsory automobile liability

168,630

17.5

116,457

12.6

44.8

Other

112,745

11.7

119,928

13.0

(6.0

)

Total

961,346

100.0

922,529

100.0

4.2

Net claims paid


								(Yen in millions, %)

		For the six months ended				For the six months ended				% of net
		September 30, 2003				September 30, 2002				change

		Amount				Amount
		(A)		Ratio		(B)		Ratio		((A)-(B))/(B)

Fire and allied lines			40,320		8.7		40,541		9.1		(0.5	)
Hull and cargo			21,615		4.7		14,510		3.3		49.0
Personal accident			33,219		7.2		34,532		7.8		(3.8	)
Voluntary automobile			246,121		53.2		245,355		55.3		0.3
Compulsory automobile liability			62,573		13.5		49,315		11.1		26.9
Other			59,153		12.8		59,163		13.3		(0	)

	Total		463,003		100.0		443,419		100.0		4.4

Direct premiums written including deposit premiums from policyholders


								(Yen in millions, %)

		For the six months ended				For the six months ended				% of net
		September 30, 2003				September 30, 2002				change

		Amount				Amount
		(A)		Ratio		(B)		Ratio		((A)-(B))/(B)

Fire and allied lines			162,826		14.7		164,734		14.8		(1.2	)
Hull and cargo			37,221		3.4		33,446		3.0		11.3
Personal accident			188,674		17.0		181,169		16.3		4.1
Voluntary automobile			446,421		40.2		456,895		41.0		(2.3	)
Compulsory automobile liability			155,551		14.0		155,412		13.9		0.1
Other			119,033		10.7		122,593		11.0		(2.9	)

	Total		1,109,728		100.0		1,114,252		100.0		(0.4	)
Deposit premiums from policyholders			132,903		12.0		129,749		11.6		2.4

Note 1. Numbers are after elimination of inter-segment transactions. The numbers before elimination of inter-segment transactions are as follows. For the six months ended September 30, 2003; net premiums written 961,363 million yen, net claims paid 463,003 million yen, direct premiums written 1,109,745 million yen. For the six months ended September 30, 2002; net premiums written 922,537 million yen, net claims paid 443,419 million yen, direct premiums written 1,114,261 million yen.

Note 2. “Direct premiums written including deposit premiums from policyholders” are direct premiums after deduction of cancellation return and other return. (includes deposit premiums from policyholders)

Consolidated Interim Financial Statements

Consolidated Interim Balance Sheet


												(Yen in millions except percentages)

			As of September 30, 2003						As of September 30, 2002						As of March 31, 2003

			Amount			Ratio			Amount			Ratio			Amount			Ratio

						%						%						%
		Assets
Cash, deposits and savings				687,558			6.63			693,305			7.05			503,339			5.06
Call loans				548,100			5.28			526,400			5.35			440,093			4.42
Guarantee deposits for bond loan transaction				6,226			0.06			—			—			61,837			0.62
Monetary receivables bought				77,751			0.75			83,535			0.85			86,028			0.86
Money trust				55,963			0.54			73,003			0.74			73,786			0.74
Securities				7,203,051			69.44			6,461,530			65.69			6,810,742			68.48
Loans				680,099			6.56			755,450			7.68			705,551			7.09
Property and equipment				372,388			3.59			385,220			3.92			373,068			3.75
Other assets				748,593			7.22			859,460			8.74			809,571			8.14
Deferred tax assets				22,355			0.22			27,496			0.28			108,296			1.09
Customers’ liabilities under acceptances and guarantees				14,637			0.14			25,543			0.26			20,408			0.21
Reserve for bad debts				(44,287	)		(0.43	)		(55,292	)		(0.56	)		(46,914	)		(0.47	)

		Total assets		10,372,419			100.00			9,835,655			100.00			9,945,809			100.00

		Liabilities
Underwriting funds				6,828,979			65.84			6,394,206			65.01			6,609,234			66.45
	Outstanding claims			701,766						685,930						701,685
	Underwriting reserves			6,127,213						5,708,276						5,907,548
Bonds issued				191,009			1.84			135,000			1.37			172,225			1.73
Other liabilities				856,386			8.26			922,133			9.38			912,261			9.17
Reserve for retirement benefits				187,039			1.80			192,033			1.95			188,951			1.90
Reserve for employees’ bonuses				23,651			0.23			22,459			0.23			19,603			0.20
Reserve under the special law				59,411			0.57			45,413			0.46			52,574			0.53
	Reserve for price fluctuation			59,411						45,413						52,574
Deferred tax liabilities				33,814			0.33			5,049			0.05			3,364			0.03
Consolidated adjustment account				156,187			1.51			164,218			1.67			160,407			1.61
Acceptances and guarantees				14,637			0.14			25,543			0.26			20,408			0.21

		Total liabilities		8,351,117			80.51			7,906,058			80.38			8,139,031			81.83

		Minority interest		1,979			0.02			1,843			0.02			1,844			0.02

		Stockholders’ equity
Common stock				150,000			1.45			150,000			1.53			150,000			1.51
Additional paid-in capital				306,363			2.95			306,624			3.12			306,624			3.08
Retained earnings				820,225			7.91			805,043			8.18			776,909			7.81
Unrealized gains on investments, net of taxes				796,349			7.68			685,265			6.97			592,420			5.96
Foreign currency translation adjustments				(12,582	)		(0.12	)		(13,060	)		(0.13	)		(13,358	)		(0.13	)
Treasury stock				(41,033	)		(0.40	)		(6,118	)		(0.06	)		(7,662	)		(0.08	)
		Total stockholders’ equity		2,019,322			19.47			1,927,753			19.60			1,804,933			18.15

		Total liabilities, minority interest and stockholders’ equity		10,372,419			100.00			9,835,655			100.00			9,945,809			100.00

Consolidated Interim Statement of Income


											(Yen in millions except percentages)

			For the six months ended					For the six months ended						For the six months ended
			September 30, 2003					September 30, 2002						September 30, 2003

			Amount			Ratio		Amount			Ratio			Amount			Ratio

Ordinary income and expenses
Ordinary income				1,383,265			100.00		1,417,981			100.00			2,929,011			100.00
	Underwriting income			1,293,914			93.54		1,218,472			85.93			2,644,240			90.28
		Net premiums written		961,346					922,529						1,896,639
		Deposit premiums from policyholders		132,903					129,749						272,000
		Investment income on deposit premiums from policyholders		34,317					35,585						69,631
		Life insurance premiums		164,020					130,453						404,650
		Reversal of reserve for outstanding claims		985					—						—
	Investment income			75,418			5.45		181,026			12.77			249,124			8.51
		Interest and dividends received		71,584					80,194						155,522
		Profit on investment in money trusts		739					474						494
		Profit on sales of securities		24,462					116,063						123,414
		Profit on redemption of securities		1,496					3,939						7,411
		Profit on derivative transactions		10,578					14,134						28,977
		Transfer of investment income on deposit premiums		(34,317	)				(35,585	)					(69,631	)
	Other ordinary income			13,932			1.01		18,481			1.30			35,646			1.22
		Amortization of goodwill		4,220					4,210						8,421
		Investment income under the equity method		—					328						737
Ordinary expenses				1,283,049			92.76		1,290,782			91.03			2,828,138			96.56
	Underwriting expenses			1,083,658			78.34		1,055,291			74.42			2,307,659			78.79
		Net claims paid		463,003					443,419						927,341
		Loss adjustment expenses		39,730					38,340						74,768
		Agency commissions and brokerage		165,402					167,038						336,037
		Maturity refunds to policyholders		177,782					213,955						544,648
		Dividends to policyholders		36					41						69
		Life insurance claims		13,840					12,100						26,140
		Provision for outstanding claims		—					21,331						37,106
		Provision for underwriting reserves		220,745					155,991						356,988
	Investment expenses			9,346			0.68		45,422			3.20			142,491			4.86
		Loss on investment in money trusts		2,412					1,662						2,993
		Loss on trading securities		306					12						160
		Loss on sales of securities		4,081					6,807						31,923
		Loss on revaluation of securities		1,503					34,118						106,879
		Loss on redemption of securities		16					148						188
	Underwriting and general administrative expenses			186,713			13.50		186,842			13.18			371,285			12.68
	Other ordinary expenses			3,330			0.24		3,225			0.23			6,702			0.23
		Interest paid		1,269					1,774						4,023
		Loss on bad debts		0					24						70
		Investment loss under equity method		863					—						—
		Amortization of deferred assets under Article 133 of Insurance Business Law		—					96						192

Ordinary profit				100,215			7.24		127,198			8.97			100,872			3.44

Extraordinary gains and losses
Extraordinary gains				723			0.05		6,340			0.45			7,114			0.24
	Profit on sales of properties			723					6,340						7,114
Extraordinary losses				13,428			0.97		8,324			0.59			28,475			0.97
	Loss on sales of properties			569					665						9,065
	Provision for reserve under the special law			6,837					6,809						13,970
		Provision for reserve for price fluctuation		6,837					6,809						13,970
	Extra write-off against profit on sales of properties			0					0						0
	Integration costs			—					—						4,659
	Merger related costs			1,654					—						—
	Loss on revaluation of stock of subsidiaries			4,275					—						—
	Other extraordinary losses			90					849						778

Income before income taxes				87,511			6.33		125,214			8.83			79,511			2.71
Income taxes — current				26,100			1.89		82,837			5.84			92,384			3.15
Income taxes — deferred				1,789			0.13		(40,940	)		(2.89	)		(69,661	)		(2.38	)
Minority interest				84			0.01		70			0.00			172			0.01

Net income				59,537			4.30		83,247			5.87			56,616			1.93

Consolidated Interim Statement of Additional Paid-in Capital and Retained Earnings


							(Yen in millions)

			For the six months ended		For the six months ended		For the year ended
			September 30, 2003		September 30, 2002		March 30, 2003

Additional paid-in capital:
	Additional paid-in capital at beginning of period			306,624		38,782		38,782
	Increase in Additional paid-in capital			—		267,841		267,841
		Increase due to share transfer		—		266,210		266,210
		Profit on sales of treasury stocks		—		1,630		1,630
	Decrease in Additional paid-in capital			260		—		—
		Loss on sales of treasury stocks		260		—		—
	Additional paid-in capital at end of period			306,363		306,624		306,624

Retained earnings:
	Retained earnings at beginning of period			776,909		738,446		738,446
	Increase in Retained earnings			61,827		83,247		56,616
		Net income		59,537		83,247		56,616
		Increase in connection with newly consolidated subsidiaries		413		—		—
		Increase in connection with merger of subsidiaries		5		—		—
		Other increases		1,870		—		—
	Decrease in Retained earnings			18,511		16,650		18,153
		Dividends		18,491		16,381		16,381
		Directors’ bonuses		20		120		120
		Decrease in connection with newly consolidated subsidiaries		—		—		942
		Other decreases		—		148		708
	Retained earnings at end of period			820,225		805,043		776,909

Consolidated Interim Statement of Cash Flows


									(Yen in millions)

			For the six months ended			For the six months ended			For the year ended
			September 30, 2003			September 30, 2002			September 30, 2002

I. Cash flows from operating activities:
	Income before income taxes			87,511			125,214			79,511
	Depreciation			8,701			9,424			18,921
	Amortization of goodwill			(4,220	)		(4,210	)		(8,421	)
	Increase (decrease) in outstanding claims			(984	)		21,406			37,220
	Increase (decrease) in underwriting reserves			219,214			154,485			354,136
	Increase (decrease) in reserve for bad debts			(2,671	)		(7,205	)		(15,727	)
	Increase in reserve for retirement benefits			(1,955	)		(6,250	)		(9,398	)
	Increase in reserve for employees’ bonuses			4,021			4,449			1,527
	Increase in reserve for price fluctuation			6,837			6,809			13,970
	Interest and dividend income			(71,584	)		(80,194	)		(155,522	)
	Net (profit) loss on investment securities			(16,653	)		(78,916	)		8,314
	Interest expenses			1,269			1,774			4,023
	Gain (loss) on foreign exchange			399			356			566
	Loss (profit) related to properties			(63	)		(5,112	)		2,152
	Investment income (loss) under the equity method			863			(328	)		(737	)
	Increase in other assets			51,577			(57,168	)		(9,410	)
	(other than investing and financing activities)
	Increase in other liabilities			(92,434	)		28,235			53,576
	(other than investing and financing activities)
	Others			2,203			1,780			8,549
	Sub-total			192,031			114,548			383,254
	Interest and dividends received			88,404			90,888			175,393
	Interest paid			(1,475	)		(1,061	)		(2,508	)
	Income taxes (paid) refunded			(72,382	)		(66,629	)		(112,933	)

		Net cash provided by operating activities		206,577			137,745			443,205

II. Cash flows from investing activities:
	Net decrease in deposit and savings			(650	)		4,227			5,605
	Purchases of monetary receivables bought			(7,866	)		(7,386	)		(32,979	)
	Proceeds from sales and redemption of monetary receivables bought			16,953			33,059			55,816
	Increase in money trusts			(3,618	)		(5,500	)		(10,050	)
	Decrease in money trusts			21,055			32,941			35,605
	Purchases of investment securities			(897,529	)		(1,252,912	)		(2,475,069	)
	Proceeds from sales and redemption of securities			821,373			995,245			1,578,920
	Loans made			(93,888	)		(102,458	)		(206,174	)
	Proceeds from collection of loans receivable			120,330			184,188			331,555
	Increase in cash received under securities lending transactions			9,610			23,736			39,740
	Others			(122	)		(42	)		(534	)
		Subtotal (II(a))		(14,354	)		(94,900	)		(677,562	)
		Subtotal (I + II(a))		192,222			42,845			(234,356	)
	Purchases of property and equipment			(8,747	)		(5,934	)		(15,707	)
	Proceeds from sales of property and equipment			1,842			7,484			12,776

		Net cash provided by (used in) investing activities		(21,259	)		(93,350	)		(680,493	)

III. Cash flows from financing activities:
	Proceeds from borrowing			3,320			—			592
	Payments of borrowing			(2,023	)		—			(20	)
	Proceeds from issuance of bond			26,596			—			45,695
	Redemption of bond			(7,869	)		—			(14,325	)
	Increase in the deposits received for bond loan transaction			42,484			—			—
	Acquisition of the Company’s own shares			(33,780	)		6,686			5,141
	Dividends paid			(18,459	)		(16,380	)		(16,396	)
	Dividends paid by subsidiaries to minority shareholders			(34	)		(146	)		(146	)
	Payments related to acquisition by subsidiaries of their own shares			—			—			4,196
	Other			1,955			(11	)		—

		Net cash provided by financing activities		12,188			(9,853	)		16,344

IV. Effect of exchange rate changes on cash and cash equivalents				948			(7,748	)		(8,860	)

V. Net increase (decrease) in cash and cash equivalents				198,455			26,794			(229,803	)
VI. Cash and cash equivalents at beginning of period				932,064			962,369			962,369

VII. Net increase in cash and cash equivalents due to inclusion of a subsidiary in scope of consolidation				—			175,741			175,741
VIII. Net increase in cash and cash equivalents due to newly consolidated subsidiaries				9,923			—			23,756
IX. Net increase in cash and cash equivalents due to merger of subsidiaries				444			—			—
X. Cash and cash equivalents at end of period				1,140,887			1,164,905			932,064

Basis of Presentation and Significant Accounting Policies

1. Scope of consolidation

(1) Number of consolidated subsidiaries — 16 companies

(Name of companies)

The Tokio Marine and Fire Insurance Company, Limited (“Tokio Marine”)

The Nichido Fire and Marine Insurance Company, Limited (“Nichido Fire”)

The Tokio Marine Life Insurance Company, Limited (“Tokio Marine Life”)

The Nichido Life Insurance Company, Limited (“Nichido Life”)

Tokio Marine & Nichido Career Service Co., Ltd.

Tokio Marine Asset Management Company, Limited

Millea Asia Pte. Ltd.

Trans Pacific Insurance Company

Tokio Marine Europe Insurance Limited

Tokio Marine Global Re Limited

The Tokio Marine and Fire Insurance Company (Singapore) Pte. Limited

The Tokio Marine and Fire Insurance Company (Hong Kong) Limited

Tokio Marine Brasil Seguradora S.A.

Tokio Millennium Re Ltd.

Nichido Investment (Luxembourg) S.A.

Tokio Marine Financial Solutions Ltd.

Millea Asia Pte. Ltd., has become an increasingly important company and is being included within the scope of the Group’s consolidated companies from this term. As of July 1, 2003, Tokio Marine Career Service, a consolidated company, merged with the non-consolidated companies, Tokai Business Service, FLORA Staff, and Nichido Fire Career Service to form Tokio Marine & Nichido Career Service Co., Ltd.

(2) Major non-consolidated subsidiaries

The Tokio Marine Claims Research Co., Ltd. and European Nichido Insurance Company Limited are the major non-consolidated subsidiaries. Each non-consolidated subsidiary is considered insignificant in respect of its total assets, sales, net profit and loss for the period, and retained earnings. Accordingly, non-consolidated subsidiaries are not considered material to prevent reasonable judgement as to financial position and operating results. For this reason, these companies are excluded from the scope of consolidation.

2. Application of the equity method

(1) Number of affiliates applying the equity method – 1 company

(Name of the company)

First Insurance Company of Hawaii, Ltd.

(2) As for the non-consolidated subsidiaries (The Tokio Marine Claims Research Co., Ltd., European Nichido Insurance Company Limited, etc.) and affiliates (Tokio Marine Malayan Insurance Co., Inc. etc.), the equity method is not applied since each of the companies does not have significant effect on the consolidated net income for the six months and retained earnings. They are also not considered material as a whole.

(3) Consolidated domestic property and casualty insurance subsidiaries own 26.9% of the Japan Earthquake Reinsurance Co., Ltd. The Company does not include the Japan Earthquake Reinsurance Co., Ltd. in its scope of application of the equity method since the Company considers that it does not have a significant controlling interest over the Japan Earthquake Reinsurance Co., Ltd. due to its communal business characteristics.

(4) With regard to the companies accounted for by the equity method, financial statements as of each company’s interim balance sheet date, which could differ from the six-months end for consolidated financial statements, are used for the consolidated interim financial statements.

3. Closing date of consolidated subsidiaries

For one consolidated domestic subsidiary and ten consolidated foreign subsidiaries, the end of the period of six months is June 30. Since the difference in the end of the six months period does not exceed three months, financial statements of the subsidiaries as of the six months end are used in preparing the consolidated interim financial statements. As for major transactions occurring during the intervening period, necessary adjustments are made upon consolidation.

4. Accounting policies

(1) Valuation of securities

a. Securities for the purpose of sale are accounted for by the mark-to-market method, and costs of securities sold are determined based on the moving-average method.

b. Held-to-maturity debt securities are stated at amortized cost (straight-line method) determined by the moving-average method.

c. Securities other than trading securities, held-to-maturity debt securities and investments in subsidiaries and affiliates (hereinafter referred to as “other securities”) with market value are stated at quoted price as of the end of the six months. Unrealized gains/losses on the securities are included in stockholders’ equity, net of income taxes, and costs of securities sold are determined based on the moving-average method.

d. “Other securities” with no market value are stated at cost or amortized cost (under straight-line method) determined by the moving-average method.

e. Investments in non-consolidated subsidiaries and affiliates to which the equity method is not applied are stated at cost determined by the moving-average method.

e. The valuation of the securities held in individually managed money trusts which are mainly invested in securities for trading

are accounted for by the mark-to-market method.

(2) Valuation of derivative financial instruments

Derivative financial instruments are accounted for by the mark-to-market method.

(3) Depreciation of property and equipment

Depreciation of property and equipment owned by Millea Holdings and its consolidated domestic insurance subsidiaries is computed by the declining balance method. However, depreciation of the buildings (excluding auxiliary facilities attached to buildings, etc.) which were acquired on or after April 1, 1998 is calculated by the straight-line method.

(4) Reserves

a. Reserve for bad debts

In order to provide for losses from bad debts, reserve for bad debts is accounted for pursuant to the rules of asset self-assessment and rules of asset write off and allowance by consolidated domestic insurance subsidiaries as follows:

For claims to a debtor who is in formal bankruptcy or any other bankruptcy related proceedings such as a stay order from a clearing house, and for receivables from an insolvent debtor who is not involved in such formal proceedings, the amount equal to the claims less the amount likely to be collected through collateral or applicable guarantee is reserved.

For claims to a debtor who is likely to be insolvent in the near future, the amount which is considered necessary taking into account the debtor’s overall situation, within the amount equal to the claims less the amount likely to be collected through collateral or applicable guarantees, is reserved.

For claims other than those described above, the amount of claims multiplied by the default rate, which is computed based on loss experience in certain previous periods, is reserved.

For overseas claims, a reserve for specified overseas claims is provided considering possible losses arising from political or economic turmoil in foreign countries.

All claims are assessed by the asset management departments in accordance with the rules for asset self-assessment and then audited by the asset auditing departments, which are independent from these asset management departments. Reserves for bad debts mentioned above is computed based on the results of this assessment.

b. Reserve for retirement benefits

For consolidated domestic subsidiaries, the reserve for retirement benefits is stated at the amount accrued at the end of the six months, based on projected benefit obligation and the estimated pension funds at the end of the current fiscal year.

Prior service costs are accounted for as expenses at the time of occurrence using the straight-line method over a certain length of years (15 years) within the average remaining employment period of employees.

Actuarial differences are accounted for as expenses in the next period using the straight-line method over a certain length of years (10 to 15 years) within the average remaining employment period of employees.

c. Reserve for employees’ bonuses

In order to prepare for employee bonus payments, Millea Holdings and its consolidated domestic subsidiaries accrue for reserve for employees’ bonuses based on the estimated amount of payment.

d. Reserve for price fluctuation

Consolidated domestic insurance subsidiaries provide reserves under Article 115 of the Insurance Business Law in order to provide for possible losses arising from price fluctuation of stock etc.

(5) Consumption tax

For Millea Holdings and its consolidated domestic subsidiaries, consumption tax is accounted for by the tax-segregated method, except for loss adjustment expenses and underwriting and general administrative expenses of consolidated domestic insurance subsidiaries, which are accounted for by including tax method.

The undeductible consumption tax in respect of assets is included in Other assets (the suspense payments) and amortized evenly over five years.

(6) Lease transactions

For Millea Holdings and its consolidated domestic subsidiaries, finance lease transactions other than those which are deemed to transfer the ownership of the leased property to lessees are accounted for by a method similar to that applicable to the ordinary operating lease transactions.

(7) Hedge accounting

To mitigate interest rate fluctuation risks associated with long-term insurance policies, Tokio Marine and Tokio Marine Life engage in asset liability management (“ALM”) that controls the risks by evaluating and analyzing financial assets and insurance liabilities simultaneously.

Interest rate swap transactions that are used by Tokio Marine and Tokio Marine Life to manage the risks had been accounted for by the deferral method and hedge effectiveness is evaluated based on bulletin No.26 “Accounting and Auditing Treatments related to Adoption of Accounting for Financial Instruments in the Insurance Industry (Japanese Institute of Certified Public

Accountants, September 3, 2002).”

Hedge effectiveness is evaluated by verifying the interest rate conditions influencing calculation of a logical price for both the hedged instruments and the hedging tools. Prior to application of Bulletin No. 26, deferred gains on hedging activities based on the Industry-by-Industry Auditing Committee’s Bulletin No. 16 “Accounting and Auditing Treatments related to Adoption of Accounting for Financial Instruments in the Insurance Industry” – which was issued by the Japanese Institute of Certified Public Accountants on March 31, 2000 – are accounted for in accordance with the transitional measures in Bulletin no. 26. That is, deferred hedge profits are allocated to profits or losses using the straight-line method as at the end of March 2003 over the remaining period until hedge tools mature (1-17 years) in the case of Tokio Marine and Fire Insurance Company Limited and as at the end of March 2002 over the remaining period until hedge tools mature (6-10 years) in the case of The Tokio Marine Life Insurance Company Ltd. Deferred hedge gains under this transitional treatment at the end of the six months amounted to 145,834 million yen and the amount of gains amortized for the six months was 12,652 million yen.

Tokio Marine applies deferred hedge accounting to interest rate swap transactions which are used to control interest rate risk of bonds issued, while Tokio Marine Life applies the deferred hedge accounting to interest rate swap transactions at used to mitigate price fluctuation risks of bonds. Hedge effectiveness is evaluated by comparative analysis of change in market value of the hedging instruments and the related hedged items.

(8) Accounting for tax expenses

Income taxes-current and Income taxes-deferred for the six months ended September 30, 2003 for consolidated domestic insurance subsidiaries are calculated assuming additions to or deductions from the surplus reserve for contraction of fixed assets at year-end.

(9) Accounting standard for overseas subsidiaries

The accounting standards applied to overseas subsidiaries are based on those in the countries where each consolidated subsidiary exists.

5. Scope of cash and cash equivalents for consolidated interim statement of cash flows

Cash and cash equivalents for the consolidated interim statements of cash flows consist of short-term investments, such as cash, demand deposits and time deposits whose period from deposit to the maturity or redemption date is within 3 months.

Additional information

In the interim balance sheet for the previous period ended September 30, 2002, “Bond lending transaction payment guarantees” was included in “Other assets”; due to amendments to the Insurance Law Enforcement Regulations, however, the format of the consolidated balance sheet changed from the previous financial year and the account appears following “Call loans.”

Notes

Notes to consolidated interim balance sheet

1. Accumulated depreciation of property and equipment amounts to 308,398 million yen and accumulated advanced depreciation deduction adjustment of properties is 26,279 million yen.

For the six months ended September 30, 2003, the amount of reduction entry deducted from the value for movable and immovable property acquisitions after payment of insurance monies was 0 million yen.

2. Total amount of loans to borrowers in bankruptcy, past due loans, accruing loans contractually past due for 3 months or more, and restructured loans is 64,997 million yen. The breakdown is as follows:

(1) The amount of loans to borrowers in bankruptcy is 13,442 million yen. Loans are generally placed on nonaccrual status when substantial doubt exists as to the ultimate collectibility of either principal or interest, if they are past due for certain period, or for other reasons. Loans to borrowers in bankruptcy represent nonaccrual loans after the partial write-off for the position are deemed uncollectible, which are defined in Article 96, Paragraph 1, Subparagraphs 3 and 4 of the Enforcement Ordinance of the Corporation Tax Law.

(2) The amount of past due loans is 43,446 million yen. Past due loans are nonaccrual status loans other than loans to borrowers in bankruptcy or loans for which interest payments are deferred in order to assist the financial recovery of borrowers in financial difficulties.

(3) The amount of loans contractually past due for 3 months or more is 158 million yen. Loans contractually past due for 3 months or more do not include loans classified as loans to borrowers in bankruptcy or past due loans.

(4) The amount of restructured loans is 7,950 million yen. Restructured loans are loans on which concessions (e.g. reduction of the stated interest rate, deferral of interest payment, extension of the maturity date, forgiveness of debt) are made to the borrowers in financial difficulties to assist them in their financial recovery, improving their ability to repay to the creditors. Restructured loans do not include loans classified as loans to borrowers in bankruptcy, past due loans or loans past due for 3 months or more.

3. The value of security pledged assets stood at 335,576 million yen in securities and 1,158 million yen in saving deposit. Collateralized debt obligations are held to the value of 1,107 million yen in reserve fund for payment, 20,143 million yen in liability reserve, and 348 million yen in other debts.

4. Securities received for the loan transaction with cash collateral amounted to 6,220 million yen at its market value.

5. Gains or losses on hedge instruments are netted and included in “Other liabilities”. The amount of gross gains and losses on deferred hedge are 212,586 million yen and 103,454 million yen, respectively.

6. Loaned securities of 238,799 million yen are included in Securities.

7. Loan commitments unused amounted as follows;


	(Yen in millions)
Total loan commitments		13,350
Balance of loans in force		3,998

Loan commitments unused		9,351

Notes to consolidated interim statement of income

1. Major components of business expenses


	(Yen in millions)
Agency commissions		156,368
Salaries		63,400

Business expenses consist of Underwriting and general administrative expenses, Loss adjustment expenses and Agency commissions and brokerage, as shown in the consolidated interim statement of income.

Notes to consolidated interim statement of cash flows

1. Reconciliation of cash and cash equivalents to the amounts disclosed in the consolidated interim balance sheet is as follows:


	(At September 30, 2003, Yen in millions)

Cash, deposits and savings		687,558
Call loans		548,100
Monetary receivables bought		77,751
Securities		7,203,051
Time deposits with initial term over three months to maturity		(110,087	)
Monetary receivables bought not included in cash equivalents		(72,498	)
Securities not included in cash equivalents		(7,192,988	)

Cash and cash equivalents		1,140,887

2. Cash flows from investing activities include cash flows arising from investment activities relating to the insurance business.

Segment Information

1. Segment information by lines of business

(From April 1, 2003 to September 30, 2003)


		(Yen in millions)
		Property and
		casualty		Life		Others		Total		Elimination			Consolidated

Ordinary income
	(1) Ordinary income from transactions with external customers		1,194,345		181,338		7,621		1,383,306		(40	)		1,383,265
	(2) Ordinary income arising from internal segment transactions		6,803		70		5,994		12,869		(12869	)		0
Total ordinary income			1,201,149		181,409		13,616		1,396,175		(12909	)		1,383,265
Ordinary expenses			1,103,195		179,471		12,689		1,295,357		(12307	)		1,283,049
Ordinary profit/loss			97,953		1,938		926		100,818		(602	)		100,215


Notes:
1.	The segments are classified based on the characteristics of operation of reporting company and its subsidiaries
2.	Major operations of each segment are as follows;
		Property and casualty	: Underwriting property and casualty insurance and related investment activities
		Life	: underwriting life insurance and related investment activities
		Others	: Securities investment advisory, securities investment trusts business, derivatives business and staffing business
3.	Major component of the “Elimination” set for “Ordinary income from transactions with external customers” is for the reclassification of Provision for bad debts of 29 million yen which is included in ordinary income of life insurance segment

(From April 1, 2002 to September 30, 2002)


		(Yen in millions)
		Property and
		casualty		Life		Others		Total		Elimination			Consolidated

Ordinary income
	(1) Ordinary income from transactions with external customers		1,264,210		157,347		1,543		1,423,101		(5,120	)		1,417,981
	(2) Ordinary income arising from internal segment transactions		5,667		57		86		5,812		(5,812	)		0
Total ordinary income			1,269,878		157,404		1,630		1,428,913		(10,932	)		1,417,981
Ordinary expenses			1,144,846		155,396		1,467		1,301,710		(10,928	)		1,290,782
Ordinary profit/loss			125,032		2,008		162		127,203		(4	)		127,198

Notes:


1.	The segments are classified based on the characteristics of operation of reporting company and its subsidiaries
2.	Major operations of each segment are as follows;
		Property and casualty	: Underwriting property and casualty insurance and related investment activities
		Life	: Underwriting life insurance and related investment activities
		Others	: Securities investment advisory and securities investment trusts business.
3.	Major component of the “Elimination” set for “Ordinary income from transactions with external customers” is for the reclassification of Losses on derivative transactions amounted to 5,094 million yen which is included in ordinary income from property and casualty segment

(From April 1, 2002 to March 31, 2003)


		(Yen in millions)
		Property
		and casualty		Life		Others		Total		Elimination			Consolidated

Ordinary income
	(1) Ordinary income from transactions with external customers		2,484,662		451,347		5,591		2,941,601		(12,590	)		2,929,011
	(2) Ordinary income arising from internal segment transactions		12,221		26		193		12,442		(12,442	)		0
Total ordinary income			2,496,884		451,374		5,784		2,954,043		(25,032	)		2,929,011
Ordinary expenses			2,393,855		454,912		5,226		2,853,994		(25,855	)		2,828,138
Ordinary profit/loss			103,028		3,537		558		100,049		822			100,872

Notes:


1.	The segments are classified based on the characteristics of operation of reporting company and its subsidiaries.
2.	Major operations of each segment are as follows;
		Property and casualty	: Underwriting property and casualty insurance and related investment activities
		Life	: underwriting life insurance and related investment activities
		Others	: Securities investment advisory, securities investment trusts business, derivatives business and staffing business
3.	Major component of the “Elimination” set for “Ordinary income from transactions with external customers” is for the reclassification of reversal of underwriting reserves of 10,442 million yen which is included in ordinary income from property and casualty segment.

2. Segment information by location

Segment information by location is omitted since the “business in Japan” constitutes more than 90 percent of the aggregated amount of the ordinary income of all segments.

3. Segment information on overseas sales

Since overseas sales and ordinary income constitutes less than 10% of the consolidated sales and consolidated ordinary income respectively, segment information on overseas sales is omitted.

Securities

1. Bonds held to maturity with market value

(Yen in millions)

As of September 30, 2003

As of September 30, 2002

As of March 31, 2003

Type

Carrying value

Market value

Difference

Carrying value

Market value

Difference

Carrying value

Market value

Difference

Bonds

1,022,666

1,033,460

10,794

557,687

608,361

50,673

875,617

1,028,732

153,114

2. “Other securities” with market value


	(Yen in millions)

	As of September 30, 2003							As of September 30, 2002						As of March 31, 2003

	Acquisition		Carrying					Acquisition		Carrying				Acquisition		Carrying
Type	cost		value		Difference			cost		value		Difference		cost		value		Difference

Bonds		2,597,558		2,618,929		21,371			2,359,626		2,441,613		81,987		2,640,500		2,813,743		173,242
Stocks		1,335,707		2,557,382		1,221,675			1,426,562		2,394,286		967,723		1,300,565		2,031,678		731,112
Foreign securities		571,359		568,778		(2,580	)		620,752		643,498		22,746		573,076		590,952		17,876
Others		149,020		153,625		4,605			151,491		151,731		240		173,715		176,632		2,916

Total		4,653,644		5,898,717		1,245,072			4,558,433		5,631,130		1,072,697		4,687,858		5,613,006		925,148

Notes for figures as of September 30, 2003.


1.		“Others” include foreign mortgage securities (acquisition cost Yen 50,216 million, carrying value Yen 52,123 million, difference Yen 1,906 million) which are presented as monetary receivables bought.
2.		Impairment loss amounting to Yen 671 million were recognized for “Other securities” with market value. Impairment loss is accounted for principally if market value of each security decreases equal to or more than 30% of its book value at the end of the period.

Notes for figures as of September 30, 2002.


1.		“Others” include foreign mortgage securities (acquisition cost Yen 41,878 million, carrying value Yen 43,291 million, difference Yen 1,412 million) which are presented as monetary receivables bought.
2.		Impairment loss amounting to Yen 31,791 million were recognized for “Other securities” with market value. Impairment loss is accounted for principally if market value of each security decreases equal to or more than 30% of its book value at the end of the period.

Notes for figures as of March 31, 2003.


1.		“Others” include foreign mortgage securities (acquisition cost Yen 55,890 million, carrying value Yen 58,588 million, difference Yen 2,697 million) which are presented as monetary receivables bought.
2.		Impairment loss amounting to Yen 103,039 million were recognized for “Other securities” with market value. Impairment loss is accounted for principally if market value of each security decreases equal to or more than 30% of its book value at the end of the period.

3. Carrying values of securities which are not valued at market value

As of September 30, 2003

(1) Bonds held to maturity

None

(2) Other securities


	Bonds	599
	Stocks	133,384
	Foreign securities	62,781
	Others	337,577
Note:	“Others” include negotiable deposits (Yen 265,002 million) which are included in “Cash, deposits and savings” and foreign mortgage securities (Yen 6,462 million) which are included in “Monetary receivables bought”.

As of September 30, 2002

(1) Bonds held to maturity

None

(2) Other securities


	Bonds	599
	Stocks	175,324
	Foreign securities	54,906
	Others	347,106
Note:	“Others” include negotiable deposits (Yen 300,003 million) which are included in “Cash, deposits and savings” and commercial papers (Yen 7,364 million) which are included in “Monetary receivables bought”.


				Bonds			599
				Stocks			175,324
				Foreign securities			54,906
				Others			347,106

As of March 31, 2003

(1) Bonds held to maturity

None

(2) Other securities


	Bonds	599
	Stocks	189,747
	Foreign securities	54,253
	Others	148,320
Note:	“Others” include negotiable deposits (Yen 84,812 million) which are included in “Cash, deposits and savings” and foreign mortgage securities (Yen 4,959 million) which are included in “Monetary receivables bought”.

Money trusts

1. Money trusts held to maturity

None

2. Money trusts other than that held to maturity or that held for trading purposes

(Yen in millions)

As of September 30, 2003

Item

Acquisition cost

Carrying Value

Difference

Money trusts

—


	As of September 30, 2002

Item	Acquisition cost		Carrying Value		Difference

Money trusts		47,595		46,325		(1,270	)


	As of March 31, 2003

Item	Acquisition cost		Carrying Value		Difference

Money trusts		44,058		43,489		(568	)

Notes for figures as of September 30, 2003:

1. There are no money trusts valued at market value.

2. Money trusts in the amount of 101 million yen are carried at their original cost as at September 30, 2003.

Notes for figures as of September 30, 2002:

1. Other than above, money trusts in the amount of 101 million yen are carried at their original cost at September 30, 2002.

2. Impairment losses amounting to 2,822 million yen were recognized for “Money trusts other than that held to maturity or that held for trading purposes” with market value for the six months ended September 30, 2002. Impairment loss is accounted for principally if market value of each security decreases equal to or more than 30% of its book value at the end of the period.

Notes for figures as of March 31, 2003:

1. Other than above, money trusts in the amount of 101 million yen are carried at their original cost at March 31, 2003.

2. Impairment losses amounting to 3,181 million yen were recognized for “Money trusts other than that held to maturity or that held for trading purposes” with market value for the year ended March 31, 2003. Impairment loss is accounted for principally if market value of each security decreases equal to or more than 30% of its book value at the end of the period.

Contract amount, fair value and unrealized gains and losses of derivative financial instruments

(1) Foreign currency-related instruments


					(Yen in millions)

						As of September 30, 2003								As of September 30, 2002								As of March 31, 2003

						Contract					Unrealized			Contract					Unrealized			Contract					Unrealized
						amount		Fair value			gain/(loss)			amount		Fair Value			gain/(loss)			amount		Fair Value			gain/(loss)

Over-the-counter transactions:
	Foreign exchange forwards
		Short
					USD		93,599		1,320			1,320			146,705		(2,092	)		(2,092	)		103,325		(1,011	)		(1,011	)
					GBP		1,562		(1	)		(1	)		17,878		(614	)		(614	)		20,908		(766	)		(766	)
					EUR		35,124		800			800			9,931		(227	)		(227	)		14,005		(171	)		(171	)
					HKD		—		—			—			8,666		24			24			8,409		(96	)		(96	)
					CAD		6,167		239			239			248		(1	)		(1	)		251		4			4
					AUD		766		17			17			—		—			—			—		—			—
		Long
					USD		15,623		(535	)		(535	)		34,755		600			600			11,277		(1	)		(1	)
					GBP		176		8			8			—		—			—			4,350		0			0
					EUR		12,582		(24	)		(24	)		14,487		302			302			7,618		91			91
					AUD		394		(19	)		(19	)		—		—			—			—		—			—
	Currency swaps
		Pay Foreign/ Rec. Yen
					USD		387,800		(3,302	)		(3,302	)		46,863		(1,620	)		(1,620	)		380,426		(378	)		(378	)
					EUR		7,704		(181	)		(181	)		—		—			—			6,902		238			238
					AUD		20,000		(2,274	)		(2,274	)		—		—			—			20,000		(1,414	)		(1,414	)
		Pay Yen/ Rec. Foreign
					USD		254,982		8,883			8,883			—		—			—			280,863		1,123			1,123
					EUR		5,241		597			597			—		—			—			4,400		(265	)		(265	)
					AUD		3,000		123			123			—		—			—			—		—			—
		Pay Foreign/ Rec. Foreign
				Pay EUR/Rec. USD			1,641		33			33			—		—			—			—		—			—
				Pay AUD/Rec. USD			3,193		(19	)		(19	)		—		—			—			5,398		(35	)		(35	)
				Pay USD/Rec. AUD			—		—			—			—		—			—			5,348		6			6
				Pay USD/Rec. EUR			6,329		(172	)		(172	)		—		—			—			9,608		278			278
	Currency options
		Short
			Call
					USD		3,540								8,320								—
							7		4			3			13		6			6			—		—			—
					GBP		—								6,491								—
							—		—			—			25		13			11			—		—			—
					EUR		3,382								16,708								—
							7		4			3			53		49			3			—		—			—
					CAD		3,908								—								—
							14		2			12			—		—			—			—		—			—
					AUD		800								—								—
							1		0			1			—		—			—			—		—			—
		Put
					USD		3,787								1,770
							11		29			(17	)		10		0			10			—
					EUR		—								567								—		—			—
							—		—			—			4		0			4			—
	Long																						—		—			—
		Call
					USD		75								4,972								75
							4		8			4			20		17			(2	)		4		9			4
					GBP		—								4,836								—
							—		—			—			31		28			(2	)		—		—			—
					EUR		—								13,327								—
							—		—			—			85		105			20			—		—			—
		Put
					USD		39,574								1,187								277
							200		486			285			9		0			(9	)		16		0			(16	)
					GBP		16,335								—								—
							173		241			68			—		—			—			—		—			—
					EUR		637								—								—
							2		2			(0	)		—		—			—			—		—			—
					CAD		2,497								—								—
							10		45			35			—		—			—			—		—			—
					AUD		373								—								—
							1		3			2			—		—			—			—		—			—

			Total				930,802		6,322			5,891			337,716		(3,406	)		(3,585	)		883,448		(2,389	)		(2,410	)

Notes:	1.	The fair value of foreign exchange forwards agreements is based on the futures’ market price.
	2.	The fair value of currency swap transactions is calculated by discounting future cash flows to the present value based on the interest rate as of period end.
	3.	The fair value of foreign currency options contracts is based on an option pricing model.
	4.	For foreign currency options, option premiums are shown beneath the contract amount of the option.

(2) Interest rate-related instruments


																							(Yen in millions)

				As of September 30, 2003								As of September 30, 2002								As of March 31, 2003

				Contract		Market/Fair			Unrealized			Contract		Market/Fair			Unrealized			Contract		Market/Fair			Unrealized
				amount		value			gain/(loss)			amount		value			gain/(loss)			amount		value			gain/(loss)

Market transactions:
	Interest futures
		Long			1,580		(1	)		(1	)		—		—			—			—		—			—
		Short			32,779		147			147			—		—			—			—		—			—
	Interest futures options
		Long
			Call		130,996								70,235								—
					24		39			(15	)		20		35			(15	)		—		—			—
			Put		—								59,154								—
					—		—			—			6		0			5			—		—			—
		Short
			Call		145,198								70,235								—
					51		105			54			22		39			16			—		—			—
			Put		25,256								59,461								—
					7		2			(4	)		20		0			(19	)		—		—			—

Over-the-counter transactions:
	Interest forwards
		Short			—		—			—			—		—			—			49,999		(12	)		(12	)
	Interest options
		Long
			Cap		64,589								—		—			—			48,606
					226		36			189			—								113		23			90
			Swaption		—								—		—			—			1,999
					—		—			—			—								66		129			(63	)
		Short
			Cap		27,739								—								27,544
					127		5			(122	)		—		—			—			7		34			27
			Floor		5,826								—								8,614
					139		204			65			—		—			—			86		224			138
			Swaption		4,000								—								3,999
					102		246			144			—		—			—			102		246			144
	Interest rate swap
		Pay.float/Rec.fix			4,150,438		225,983			225,983			2,402,945		226,082			226,082			3,947,578		307,869			307,869
		Pay.fix/Rec.float			3,198,108		(137,740	)		(137,740	)		1,226,245		(60,697	)		(60,697	)		2,931,107		(188,391	)		(188,391	)
		Pay.float/Rec.float			256,027		(156	)		(156	)		—		—			—			285,020		(323	)		(323	)
		Pay.fix/Rec.fix			2,106		29			29			—		—			—			1,106		(19	)		(19	)

Total					8,044,648		88,903			88,573			3,888,277		165,461			165,373			7,305,577		119,781			119,458


Notes:	1.	The fair value of the interest rate future option transactions at the end of period is based on the closing price at major stock exchanges.

	2.	The fair value of the interest rate swap transactions at the end of period is calculated by discounting future cash flows to the present value based on the interest rate at the date.

	3.	The fair value of interest options transactions is based on an option pricing model.

	4.	For interest options, option premiums are shown beneath the contract amount of the option.

	5.	Interest rate swaps to which hedge accounting is applied are as follows.

(Yen in millions)

As of September 30, 2003

As of September 30, 2002

As of March 31, 2003

Contract

Market/Fair

Unrealized

Contract

Market/Fair

Unrealized

Contract

Market/Fair

Unrealized

amount

value

gain/(loss)

amount

value

gain/(loss)

amount

value

gain/(loss)

Deferred hedge accounting in accordance with bulletin No. 16

—

2,996,700

98,203

2,965,000

114,973

Deferred hedge accounting in accordance with bulletin No. 26

523,700

7,420

(42,075

)

—

49,495

—

Other deferred hedge accounting

53,500

3,627

54,300

5,285

53,500

5,677

Total

577,200

11,047

3,051,000

103,489

3,018,500

120,651

Deferred hedge gains on the balance sheets include the following.

(Yen in millions)

As of September 30, 2003

As of September 30, 2002

As of March 31, 2003

Deferred hedge gains

Balance of deferred hedge gains in accordance with bulletin No. 16 relating to interest rate swaps which are not covered by bulletin No. 26

96,339

47,171

43,512

Deferred gains which resulted from cancellation of derivatives for hedging purposes

1,744

2,185

1,966

Total

98,083

49,357

45,479

Bulletin No. 26: Accounting and Auditing Treatments related to Adoption of Accounting for Financial Instruments in the Insurance industry (Japanese institute of Certified Public Accountants, September 3, 2002)

Bulletin No. 16: Tentative Accounting and Auditing Treatments related to Adoption of Accounting for Financial Instruments in the Insurance industry (Japanese institute of Certified Public Accountants, March 31, 2000)

(3) Equity-related instruments


																							(Yen in millions)

				As of September 30, 2003								As of September 30, 2002								As of March 31, 2003

				Contract		Market/Fair			Unrealized			Contract		Market/Fair			Unrealized			Contract		Market/Fair		Unrealized
				amount		value			gain/(loss)			amount		value			gain/(loss)			amount		value		gain/(loss)

Market transactions:
	Equity index futures
		Short			13,952		269			269			14,386		278			278			13,631		632		632
		Long			7,913		(319	)		(319	)		704		(39	)		(39	)		—		—		—
	Equity index options
		Short
			Call		1,100								4,338								—
					25		20			5			31		19			12			—		—		—
			Put		—								1,132								—
					—		—			—			14		6			7			—		—		—
		Long
			Call		1,460								7,148								—
					28		20			(7	)		75		60			(14	)		—		—		—
			Put		—								246								—
					—		—			—			7		5			(2	)		—		—		—
Over-the-counter transactions:
	Equity index options
		Short
			Call		—								—								10,087
					—		—			—			—		—			—			1,237		—		1,237
		Long
			Call		—								—								10,087
					—		—			—			—		—			—			1,612		—		(1,612	)
	Equity options
		Short
			Call		1,535								—								3,538
					—		36			(36	)		—		—			—			—		2		(2	)
			Put		3,759								—								4,198
					126		107			19			—		—			—			219		221		(1	)
		Long
			Call		1,706								171								3,709
					34		70			36			34		27			(6	)		34		36		2
			Put		3,759								—								4,198
					69		124			55			—		—			—			127		221		93

			Total		35,187		330			22			28,128		358			234			49,451		1,113		348

(4) Bond-related instruments


																							(Yen in millions)

				As of September 30, 2003								As of September 30, 2002								As of March 31, 2003

				Contract		Market			Unrealized			Contract		Market			Unrealized			Contract		Market			Unrealized
				amount		value			gain/(loss)			amount		value			gain/(loss)			amount		value			gain/(loss)

Market transactions:
	Bond futures
		Short			30,809		(574	)		(574	)		26,890		(21	)		(21	)		22,064		(30	)		(30	)
		Long			20,746		574			574			15,224		112			112			—		—			—
	Bond futures option
		Short
			Call		6,562								14,672								—
					14		35			(20	)		114		118			(3	)		—		—			—
			Put		1,326								2,721								—
					2		1			1			25		13			12			—		—			—
		Long
			Call		7,276								—								—
					20		39			18			—		—			—			—		—			—
			Put		—								—								—
					—		—			—			—		—			—			—		—			—
Over-the-counter transactions:
	Bond option
		Short
			Call		1,983								—								—
					10		14			(4	)		—		—			—			—		—			—
		Long			1,983
			Put		11		6			(4	)		—		—			—			—
													—								—		—			—

Total					70,688		97			(9	)		59,508		221			99			22,064		(30	)		(30	)

(5) Weather-related instruments

(Yen in millions)

As of September 30, 2003

As of September 30, 2002

As of March 31, 2003

Contract

Fair

Unrealized

Contract

Fair

Unrealized

Contract

Fair

Unrealized

amount

value

gain/(loss)

amount

value

gain/(loss)

amount

value

gain/(loss)

Over-the-counter transactions:

Weather derivatives

Short

1,743

141

Total

1,743

141

(6) Credit-related instruments

(Yen in millions)

As of September 30, 2003

As of September 30, 2002

As of March 31, 2003

Contract

Fair

Unrealized

Contract

Fair

Unrealized

Contract

Fair

Unrealized

amount

value

gain/(loss)

amount

value

gain/(loss)

amount

value

gain/(loss)

Over-the-counter transactions:

Credit derivatives

Short

2,119,618

(5,843

)

(5,843

)

1,262,770

(26,215

)

(26,215

)

1,889,836

(16,356

)

(16,356

)

Long

417,076

(3,893

)

(3,893

)

376,890

7,686

420,566

2,868

Total

2,536,695

(9,736

)

(9,736

)

1,639,660

(18,528

)

(18,528

)

2,310,402

(13,487

)

(13,487

)


Notes:		The fair value of the credit derivative transactions at the end of period is calculated mainly using internal evaluation model.

(7) Commodity-related instruments


																			(Yen in millions)

			As of September 30, 2003								As of September 30, 2002						As of March 31, 2003

			Contract		Fair			Unrealized			Contract		Fair		Unrealized		Contract		Fair			Unrealized
			amount		value			gain/(loss)			amount		value		gain/(loss)		amount		value			gain/(loss)

Over-the-counter transactions:
	Commodity swaps
		Pay Commodity indexes/Rec. fixed price		3,390		65			65			—		—		—		521		21			21
		Pay fixed price/Rec. Commodity indexes		3,557		(6	)		(6	)		—		—		—		509		(10	)		(10	)
		Pay variable indexes/Rec. Commodity indexes		1,711		34			34			—		—		—		1,832		34			34

Total				8,659		92			92			—		—		—		2,864		45			45


Notes:		The fair value of the Commodity swap transactions at the end of period is calculated mainly using internal evaluation model.

Interim Financial Statements of Tokio Marine and its Consolidated Subsidiaries

Consolidated Interim Balance Sheets


											(Yen in millions except percentages)

		As of September 30, 2003						As of September 30, 2002							As of March 31, 2003

		Amount			Ratio			Amount				Ratio			Amount			Ratio

					%							%						%
Assets
Cash, deposits and savings			420,982			5.88			531,144				6.72			336,493			4.20
Call loans			548,100			7.66			526,400				6.66			439,800			5.49
Guarantee deposits for bond loan transaction			—			—			—				—			61,837			0.77
Monetary receivables bought			73,182			1.02			77,361				0.98			81,992			1.02
Money trust			26,629			0.37			44,337				0.56			43,589			0.54
Securities			4,621,596			64.58			5,120,212				64.82			5,502,100			68.63
Loans			627,415			8.77			595,467				7.54			560,565			6.99
Property and equipment			274,165			3.83			284,487				3.60			273,667			3.41
Other assets			582,615			8.14			723,365				9.16			654,662			8.17
Deferred tax assets			474			0.01			15,076				0.19			76,980			0.96
Customers’ liabilities under acceptances and guarantees			14,637			0.20			25,543				0.32			20,408			0.25
Reserve for bad debts			(33,017	)		(0.46	)		(44,508	)			(0.56	)		(35,593	)		(0.44	)

Total assets			7,156,780			100.00			7,898,888				100.00			8,016,505			100.00

Liabilities
Underwriting funds			4,430,559			61.91			5,020,884				63.56			5,224,183			65.17
	Outstanding claims		574,484						565,401							578,262
	Underwriting reserves		3,856,075						4,455,482							4,645,920
Straight Bonds			166,009			2.32			110,000				1.39			147,225			1.84
Other liabilities			701,793			9.81			896,120				11.34			863,460			10.77
Reserve for retirement benefits			159,321			2.23			165,216				2.09			161,980			2.02
Reserve for employees’ bonuses			18,970			0.27			18,459				0.23			15,460			0.19
Reserve under the special law			54,971			0.77			42,835				0.54			49,228			0.61
	Reserve for price fluctuation		54,971						42,835							49,228
Deferred tax liabilities			23,947			0.33			2,220				0.03			47			0.00
Consolidated adjustment account			389			0.01										399			0.00
Acceptances and guarantees			14,637			0.20			25,543				0.32			20,408			0.25

Total liabilities			5,570,602			77.84			6,281,278				79.52			6,482,395			80.86

Minority interest			1,307			0.02			1,843				0.02			1,844			0.02

Stockholders’ equity
Common stock			101,994			1.43			101,994				1.29			101,994			1.27
Additional paid-in capital			38,782			0.54			38,782				0.49			38,782			0.48
Retained earnings			681,979			9.53			765,601				9.69			780,159			9.73
Unrealized gains on investments, net of taxes			772,109			10.79			721,737				9.14			623,999			7.78
Foreign currency translation adjustments			(9,996	)		(0.14	)		(12,350	)			(0.16	)		(12,671	)		(0.16	)
Total
Treasury stock			—			—			—				—			—			—

Total stockholders’ equity			1,584,870			22.15			1,615,766				20.46			1,532,265			19.11

Total liabilities, minority interest and stockholders’ equity			7,156,780			100.00			7,898,888				100.00			8,016,505			100.00

Note: Certain reclassifications are made to previous periods’ presentation to conform to that of current period.

Consolidated Interim Statements of Income


										(Yen in millions except percentages)

			For the six months ended
															For the year ended
			September 30, 2003						September 30, 2002						March 31, 2003

			Amount			Ratio			Amount			Ratio			Amount			Ratio

						%						%						%
Ordinary income and expenses
Ordinary income				952,422			100.00			1,166,356			100.00			2,404,412			100.00
	Underwriting income			892,901			93.75			977,567			83.81			2,141,589			89.07
		Net premiums written		758,185						731,758						1,500,264
		Deposit premiums from policyholders		106,697						100,518						212,989
		Investment income on deposit premiums from policyholders		27,584						28,253						55,687
		Life insurance premiums		372						116,896						371,750
	Investment income			49,244			5.17			175,989			15.09			236,421			9.83
		Interest and dividends received		49,532						68,285						132,227
		Profit on investment in money trusts		210						212						162
		Profit on trading securities		—						30						—
		Profit on sales of securities		18,838						115,441						119,566
		Profit on redemption of securities		1,495						3,939						7,410
		Profit on derivative transactions		5,981						14,545						29,406
		Transfer of investment income on deposit premiums		(27,584	)					(28,253	)					(55,687	)
	Other ordinary income			10,275			1.08			12,800			1.10			26,400			1.10
		Depreciation of consolidated adjustment account		9						—						—
		Investment income under the equity method		—						328						737
Ordinary expenses				873,829			91.75			1,042,890			89.41			2,244,578			93.35
	Underwriting expenses			734,842			77.16			860,515			73.78			1,891,961			78.69
		Net claims paid		362,046						346,611						728,936
		Loss adjustment expenses		31,497						30,314						58,500
		Agency commissions and brokerage		121,149						131,457						266,466
		Maturity refunds to policyholders		128,273						157,238						424,742
		Dividends to policyholders		30						33						58
		Life insurance claims		298						10,885						23,186
		Provision for outstanding claims		2,444						21,649						34,529
		Provision for underwriting reserves		86,507						159,506						351,580
	Investment expenses			4,450			0.47			31,624			2.71			53,717			2.23
		Loss on investment in money trusts		1,332						452						1,257
		Loss on trading securities		299						—						154
		Loss on sales of securities		790						4,002						8,802
		Loss on revaluation of securities		1,015						24,748						42,998
		Loss on redemption of securities		9						146						181
	Underwriting and general administrative expenses			132,040			13.86			148,190			12.71			293,414			12.20
	Other ordinary expenses			2,494			0.26			2,560			0.22			5,484			0.23
		Interest paid		1,000						1,504						3,487
		Loss on bad debts		0						23						59
		Investment loss under the equity method		863						—						—
Ordinary profit				78,592			8.25			123,465			10.59			159,833			6.65

Extraordinary gains and losses
Extraordinary gains				371			0.04			6,337			0.54			8,894			0.37
	Profit on sales of properties			371						6,337						7,108
	Profit on sales of stock of affiliates			—						—						1,786
Extraordinary losses				11,689			1.23			6,999			0.60			24,310			1.01
	Loss on sales of properties			439						535						8,696
	Provision for reserve under the special law			5,944						5,967						12,360
		Provision for reserve for price fluctuation		5,944						5,967						12,360
	Extra write-off against profit on sales of properties			0						0						0
	Integration costs			—						—						3,166
	Merger related costs			1,028						—						—
	Loss on revaluation of stock of subsidiaries			4,275						—						—
	Other			0						496						86

Income before income taxes				67,275			7.06			122,803			10.53			144,417			6.01
Income taxes — current				22,589			2.37			76,674			6.57			89,953			3.74
Income taxes — deferred				(385	)		(0.04	)		(34,359	)		(2.95	)		(42,184	)		(1.75	)
Minority interest				(1	)		0			70			0.01			172			0.01

Net income				45,073			4.73			80,417			6.89			96,477			4.01

Consolidated Interim Statements of Retained Earnings


					(Yen in millions)

		For the six months ended
						For the year ended
		September 30, 2003		September 30, 2002		March 31, 2003

Additional paid-in capital
Additional paid-in capital at beginning of			38,782		38,782		38,782
Additional paid-in capital at end of			38,782		38,782		38,782
Retained earnings
Unappropriated retained earnings at beginning of			780,159		738,446		738,446
Increase in unappropriated retained earnings			45,073		80,417		96,477
	Net income		45,073		80,417		96,477
Decrease in unappropriated retained earnings			143,252		53,262		54,765
	Dividends		103,999		52,993		52,993
	Directors’ bonus		—		120		120
	Decrease in connection with newly consolidated subsidiaries		—		—		942
	Other decreases		39,252		148		708
Unappropriated retained earnings at end of			681,979		765,601		780,159

Note: Certain reclassifications are made to previous periods’ presentation to conform to the presentation for the current six months.

Consolidated Interim Statements of Cash Flows


							(Yen in millions)

				For the six months ended
											For the year ended
				September 30, 2003				September 30, 2002			March 31, 2003

I. Cash flows from operating activities:
	Income before income taxes				67,275				122,803			144,417
	Depreciation				6,440				7,193			14,236
	Depreciation of consolidated adjustment account				(9	)			—			—
	Increase (decrease) in outstanding claims				2,445				21,724			34,643
	Increase (decrease) in underwriting reserves				86,504				158,130			348,947
	Increase (decrease) in reserve for bad debts				(3,395	)			(5,908	)		(14,958	)
	Increase (decrease) in reserve for retirement benefits				(2,353	)			(6,882	)		(9,918	)
	Increase in reserve for employees’ bonuses				4,088				4,276			1,339
	Increase in reserve for price fluctuation				5,944				5,967			12,360
	Interest and dividend income				(49,532	)			(68,285	)		(132,227	)
	Net (profit) loss on securities				(14,830	)			(90,513	)		(76,628	)
	Interest expenses				1,000				1,504			3,487
	Loss (profit) on foreign exchange				363				21			227
	Loss (profit) related to properties				69				(5,355	)		1,675
	Investment income(loss) under the equity method				863				(328	)		(737	)
	Increase in other assets (other than investing and financing activities)				55,057				(38,838	)		(2,202	)
	Increase in other liabilities (other than investing and financing activities)				(82,474	)			10,471			51,530
	Others				1,686				832			6,880
		Sub-total			79,142				116,813			383,074
	Interest and dividends received				62,935				76,735			148,148
	Interest paid				(1,209	)			(793	)		(1,971	)
	Income taxes paid				(56,477	)			(47,857	)		(73,770	)

		Net cash provided by operating activities			84,389				144,898			455,479

II. Cash flows from investing activities:
	Net increase in deposit and savings				(525	)			3,970			5,150
	Purchases of monetary receivables bought				(7,186	)			(3,717	)		(26,496	)
	Proceeds from sales and redemption of monetary receivables bought				16,808				32,403			(50,212	)
	Increase in money trusts				—				—			(50	)
	Decrease in money trusts				16,406				30,315			30,867
	Purchases of securities				(379,520	)			(1,005,783	)		(1,974,256	)
	Proceeds from sales and redemption of securities				480,789				741,189			1,111,738
	Loans made				(57,455	)			(66,615	)		(14,530	)
	Proceeds from collection of loans receivable				77,949				132,516			235,332
	Increase in cash received under securities lending transactions				17,609				47,927			63,931
	Other				(82	)			(35	)		(522	)
		II(a) Subtotal			164,793				(87,829	)		(644,625	)
			Subtotal (I+II(a))		249,183				57,068			(189,145	)
	Purchases of property and equipment				(7,743	)			(3,481	)		(12,026	)
	Proceeds from sales of property and equipment				1,013				7,227			12,447
	Proceeds from sales of stock of subsidiaries				—				—			621

		Net cash provided by (used in) investing activities			158,063				(84,083	)		(643,583	)

III. Cash flows from financing activities:
	Proceeds from borrowing				3,320							592
	Payments of borrowing				(2,000	)						(3	)
	Proceeds from issuance of bond				26,596							45,695
	Redemption of bond				(7,869	)						(14,325	)
	Dividends paid by the Tokio Marine				(104,032	)			(13,165	)		53,007
	Dividends paid by subsidiaries to minority shareholders				(34	)			(146	)		(146	)
	Payments related to acquisition by subsidiaries of their own shares				—				—			(4,196	)
	Other				1,955				(2	)		—

		Net cash provided by (used in) financing activities			(82,064	)			(13,314	)		25,391

IV. Effect of exchange rate changes on cash and cash equivalents					1,034				(7,542	)		(8,647	)

V. Net increase (decrease) in cash and cash equivalents					161,423				39,958			(222,142	)
VI. Cash and cash equivalents at beginning of					763,983				962,369			962,369

VII. Net increase in cash and cash equivalents due to newly consolidated subsidiaries					—				—			23,756
VIII. Net decrease in cash and cash equivalents due to reorganization of subsidiaries					(47,141	)			—			—
IX. Cash and cash equivalents at end of					878,265				1,002,327			763,983

Note: Certain reclassifications are made to previous periods’ presentation to conform to that of current period.

Interim Financial Statements of Nichido Fire and its Consolidated Subsidiaries

Consolidated Interim Balance Sheets


														(Yen in millions except percentages)

			As at September 30, 2003						As at September 30, 2002						As at March 31, 2003

			Amount			Ratio			Amount			Ratio			Amount			Ratio

						%						%						%
		Assets
Cash, deposits and savings				124,004			6.95			161,494			8.38			148,491			7.94
Call loans				—			—			—			—			293			0.02
Monetary receivables bought				4,569			0.26			6,174			0.32			4,036			0.21
Money trust				29,334			1.64			28,665			1.49			30,197			1.61
Securities				1,299,192			72.87			1,343,966			69.78			1,295,310			69.01
Loans				133,842			7.51			161,983			8.41			144,985			7.72
Property and equipment				80,523			4.52			83,689			4.35			82,442			4.39
Other assets				122,795			6.89			132,486			6.88			145,617			7.76
Deferred tax assets				—			—			18,281			0.95			36,911			1.97
Reserve for bad debts				(11,431	)		(0.64	)		(10,801	)		(0.56	)		(11,321	)		(0.60	)

		Total Assets		1,782,830			100.00			1,925,939			100.00			1,876,963			100.00

		Liabilities
Underwriting funds				1,269,849			71.23			1,373,322			71.31			1,385,050			73.79
	Outstanding claims			119,402						120,528						123,422
	Underwriting reserves			1,150,447						1,252,793						1,261,627
Straight bonds				25,000			1.40			25,000			1.30			25,000			1.33
Other liabilities				41,620			2.33			69,052			3.59			48,371			2.58
Reserve for retirement benefits				27,194			1.53			26,817			1.39			26,705			1.42
Reserve for employees’ bonuses				3,786			0.21			3,867			0.20			3,879			0.21
Reserve under the special law				4,012			0.22			2,577			0.13			3,346			0.18
	Reserve for price fluctuation			4,012						2,577						3,346
Deferred tax liabilities				1,914			0.11			2,797			0.14			2,939			0.16

		Total Liabilities		1,373,377			77.03			1,503,434			78.06			1,495,292			79.67

		Minority interest		0			0.00			0			0.00			0			0.00

		Stockholders’ Equity
Common stock				50,550			2.84			50,550			2.63			50,550			2.69
Additional paid-in capital				34,187			1.92			34,187			1.78			34,187			1.82
Retained earnings				123,616			6.93			144,705			7.51			146,050			7.78
Unrealized gains on investments, net of taxes				202,382			11.35			194,363			10.09			152,161			8.11
Foreign currency translation adjustments				(1,284	)		(0.07	)		(1,302	)		(0.07	)		(1,279	)		(0.07	)
		Total Stockholders’ Equity		409,452			22.97			422,505			21.94			381,670			20.33

Total Liabilities, Minority Interest and Stockholders’ Equity				1,782,830			100.00			1,925,939			100.00			1,876,963			100.00

Notes: Certain reclassifications are made to previous periods’ presentation to conform to that of current period.

Consolidated Interim Statements of Income


(Yen in millions except percentages)

				For the six months ended
															For the year ended
				September 30, 2003					September 30, 2002							March 31, 2003

				Amount			Ratio		Amount			Ratio				Amount			Ratio

							%					%							%
Ordinary income and expenses
	Ordinary income				257,024			100.00		260,325			100.00				546,962			100.00
		Underwriting income			239,252			93.09		244,738			94.01				502,669			91.90
			Net premiums written		200,374					190,770							396,393
			Deposit premiums from policyholders		26,205					29,230							59,010
			premiums from policyholders		6,732					7,332							13,944
			Life insurance premiums		—					13,556							32,899
			Reversal of reserves for outstanding claims		2,996					317							—
			Reversal of underwriting reserves		2,942					3,514							—
		Investment income			16,786			6.53		14,108			5.42				43,411			7.94
			Interest and dividends received		12,834					13,739							26,548
			Profit on investment in money trust		529					211							332
			Profit on sales of securities		9,443					7,135							30,139
			Profit on redemption of securities		1					0							0
			Profit on derivative transactions		686					—							—
			Transfer of investment income on deposit premiums from policyholders		(6,732	)				(7,332	)						(13,944	)
		Other ordinary income			985			0.38		1,479			0.57				881			0.16
	Ordinary expenses				235,467			91.61		243,042			93.36				524,351			95.86
		Underwriting expenses			190,313			74.04		198,601			76.29				415,780			76.02
			Net claims paid		100,161					96,808							198,408
			Loss adjustment expenses		8,292					8,021							16,347
			Agency commissions and brokerage		32,071					35,579							69,570
			Maturity refunds to policyholders		49,508					56,717							119,905
			Dividends to policyholders		6					7							11
			Life insurance claims		—					1,215							2,953
			Provision for outstanding claims		—					—							2,576
			Provision for underwriting reserves		—					—							5,408
		Investment expenses			3,628			1.41		4,908			1.89				28,179			5.15
			Loss on investment in money trust		1,080					1,371							2,216
			Loss on trading securities		6					43							5
			Loss on sales of securities		2,329					751							11,520
			Loss on revaluation of securities		202					2,331							13,978
			Loss on redemption of securities		—					—							6
			Loss on derivative transactions		—					410							429
		Underwriting and general administrative expenses			40,678			15.83		38,867			14.93				79,172			14.47
		Other ordinary expenses			847			0.33		666			0.25				1,218			0.22
			Interest paid		264					270							537
			Reserve for bad debts		107					—							—
			Loss on bad debts		—					0							11
			Amortization of intangibles		—					96							192
	Ordinary profit				21,557			8.39		17,282			6.64				22,611			4.14

Extraordinary gains and losses
	Extraordinary gains				725			0.28		2			0.00				152			0.03
		Profit on sales of properties			725					2							152
	Extraordinary losses				1,497			0.58		1,767			0.68				4,602			0.84
		Loss on sales of properties			89					130							365
		Provision for reserve under the special law			765					841							1,610
			Provision for reserve for price fluctuation		765					841							1,610
		Other			642					795							2,626

Income before income taxes					20,786			8.09		15,517			5.96				18,161			3.33
Income taxes — current					133			0.05		6,994			2.68				586			0.11
Income taxes for previous fiscal years					—			—		—			—				2,281			0.42
Income taxes — deferred					7,062			2.75		(1,281	)		(0.49	)			4,144			0.76
Minority interest					0			0.00		0			0.00				0			0.00

Net income					13,589			5.29		9,804			3.77				11,148			2.04

Consolidated Interim Statements of Retained Earnings


							(Yen in millions)

			For the six months ended
							For the year ended
			September 30, 2003		September 30, 2002		March 31, 2003

		Additional paid-in capital
Additional paid-in capital at beginning of				34,187		34,187		34,187
Additional paid-in capital at end of				34,187		34,187		34,187
		Retained earnings
Unappropriated retained earnings at beginning of				146,050		147,542		147,542
Increase in unappropriated retained earnings				13,589		9,804		11,148
	Net income			13,589		9,804		11,148
Decrease in unappropriated retained earnings				36,023		12,641		12,641
	Dividends			26,000		12,641		12,641
	Directors’ bonus			20		—		—
	Others			10,002		—		—
Unappropriated retained earnings at end of				123,616		144,705		146,050

Notes: Certain reclassifications are made to previous periods’ presentation to conform to that of current period.

Consolidated Interim Statements of Cash Flows


										(Yen in millions)

				Six months ended
										For the year ended
				September 30, 2002			September 30, 2001			March 31, 2003

I. Cash flows from operating activities:
	Income before income taxes				20,786			15,517			18,161
	Depreciation				2,090			2,198			4,617
	Increase (decrease) in outstanding claims				(2,996	)		(317	)		2,576
	Increase (decrease) in underwriting reserves				(2,942	)		(3,645	)		5,188
	Increase (decrease) in reserve for bad debts				105			(1,278	)		(758	)
	Increase in reserve for retirement benefits				488			631			519
	Decrease in reserve for employees’ bonuses				(21	)		39			51
	Increase in reserve for price fluctuation				765			841			1,610
	Interest and dividend income				(12,834	)		(13,739	)		(26,548	)
	Net (profit) loss on securities				(6,894	)		(4,053	)		(4,639	)
	Interest expenses				264			270			537
	Loss (gain) on foreign exchange				24			(334	)		(306	)
	Loss (profit) related to properties				(192	)		684			769
	Increase in other assets (other than investing and financing activities)				(1,052	)		(10,480	)		(9,403	)
	Increase in other liabilities (other than investing and financing activities)				(3,221	)		7,522			4,045
	Other				517			1,096			2,187

		Sub-total			(5,113	)		(5,046	)		(1,392	)
	Interest and dividends received				13,791			14,738			28,220
	Interest paid				(263	)		(268	)		(536	)
	Income taxes paid				8,933			(18,771	)		(29,337	)

		Net cash provided by operating activities			17,347			(9,348	)		(3,045	)

II. Cash flows from investing activities:
	Net increase in deposit and savings				(1,000	)		257			455
	Purchases of monetary receivables bought				(680	)		(3,669	)		(6,482	)
	Proceeds from sales and redemption of monetary receivables bought				144			656			5,604
	Increase in money trusts				(3,618	)		(5,500	)		(10,000	)
	Decrease in money trusts				4,648			2,625			4,738
	Purchases of securities				(243,261	)		(247,129	)		(487,505	)
	Proceeds from sales and redemption of securities				228,820			264,023			479,773
	Loans made				(29,002	)		(37,843	)		(67,643	)
	Proceeds from collection of loans receivable				37,370			51,672			98,223
	Increase in cash received under securities lending transactions				—			(24,190	)		(24,190	)
	Others				(7	)		(5	)		(11	)
		II(a) Subtotal			(6,585	)		896			7,037
			Subtotal (I+II(a))		10,761			(8,451	)		(10,082	)
	Purchases of property and equipment				(838	)		(2,067	)		(3,668	)
	Proceeds from sales of property and equipment				830			257			621

		Net cash provided by (used in) investing activities			(6,594	)		(913	)		(10,084	)

III. Cash flows from financing activities:
	Dividends paid by the Nichido Fire				(26,000	)		(3,340	)		(12,641	)
	Dividends paid by subsidiaries to minority shareholders				—			(0	)		(0	)
	Others				(23	)		(9	)		(17	)

		Net cash provided by (used in) financing activities			(26,023	)		(3,349	)		(12,658	)

IV. Effect of exchange rate changes on cash and cash equivalents					(40	)		(219	)		(226	)

V. Net increase (decrease) in cash and cash equivalents					(15,310	)		(13,830	)		(26,015	)
VI. Cash and cash equivalents at beginning of					149,726			175,741			175,741

VII. Net decrease in cash and cash equivalents due to reorganization of subsidiaries					(10,822	)		—			—
VIII. Cash and cash equivalents at end of					(123,593	)		161,911			149,726

Notes: Certain reclassifications are made to previous periods’ presentation to conform to that of current period.

Item 3
[English translation]

November 27, 2003

Summary of Non-Consolidated Business Results of Millea Holdings, Inc. under Japanese GAAP for the Six Months Ended September 30, 2003

Company Name: Millea Holdings, Inc.
Securities Code Number: 8766
Stock Exchange Listings: Tokyo and Osaka
Head Office: Tokyo, Japan
Representative: Kunio Ishihara, President, Millea Holdings, Inc.
Contact: Masayuki Ito, Corporate Planning Dept., Millea Holdings, Inc. Phone 03-6212-3341
Satoshi Tsujigado, Corporate Finance Dept., Millea Holdings, Inc. Phone: 03-6212-3343
Interim dividends system: Established
New unit system: None

1. Non-Consolidated Business Results for the six months ended September 30, 2003
(from April 1, 2003 to September 30, 2003)
(1) Non-consolidated results of operations


	(Yen in millions except per share amounts and percentages)

	For the six months ended			For the six months ended		For the year ended
	September 30, 2003			September 30, 2002		March 31, 2003

Operating income		131,646			51,027		52,928
Ratio		158.0	%		—		—
Operating profits		130,516			49,077		49,870
Ratio		165.9	%		—		—
Ordinary profits		130,507			49,118		49,964
Ratio		165.7	%		—		—
Net income		130,283			49,119		49,605
Ratio		165.2	%		—		—
Net income per share of common stocks		70,737.79			26,480.76		26,760.92

The amounts less than respective unit are rounded down and the rates less than respective unit are rounded off.

Notes:
a. Average number of shares outstanding
For the six months ended September 30, 2003: 1,841,782 shares
For the six months ended September 30, 2002: 1,854,902 shares
For the year ended March 31, 2003: 1,853,668 shares
b. Change in accounting method: None
c. Percentage figures show increase or decrease in ordinary income, operating profit and net income from the previous period.

(2) Dividends payment
Dividends paid per share
For the six months ended September 30, 2002: None
For the six months ended September 30, 2002: None
For the year ended March 31, 2003: 10,000 yen

(3) Non-consolidated financial conditions


	(Yen in millions except per share amounts and percentages)

	For the six months ended			For the six months ended			For the year ended
	September 30, 2003			September 30, 2002			March 31, 2003

Total assets		2,275,293			2,211,673			2,206,545
Stockholders’ equity		2,274,818			2,207,111			2,206,053
Ratio of stockholders’ equity to total assets		100.0	%		99.8	%		100.0	%
Stockholders’ equity per share (Yen)		1,249,346.96			1,190,680.97			1,191,215.23

Notes:
a. Number of shares outstanding
As of September 30, 2003: 1,820,805 shares
As of September 30, 2002: 1,853,654 shares
As of March 31, 2003: 1,851,934 shares
b. Number of treasury stocks outstanding
As of September 30, 2003: 36,242 shares
As of September 30, 2002: 3,394 shares
As of March 31, 2003: 5,113 shares

2. Non-consolidated business forecast for the year ending March 31, 2004
(from April 1, 2003 to March 31, 2004)


	(Yen in millions except per share amounts)

Operating income		233,000
Ordinary profits		230,000
Net income		230,000
Annual cash dividends per share (yen)		10,000.00
Cash dividends per share by the year end (yen)		10,000.00

Notes:
Expected net income per share (yen): 126,317.69

Non-Consolidated Interim Balance Sheet


				(Yen in millions except percentages)

		As of September 30, 2003								As of September 30, 2002							As of March 31, 2003

		Amount					Ratio			Amount				Ratio			Amount				Ratio

							%							%							%
Current assets:
Cash, deposits and savings			75,381								666							16,053
Receivables			25,933								49,070							9,541
Others			80								69							104

Total Current assets					101,395			4.46				49,807			2.25				25,699			1.16

Non-current assets:
Tangible fixed assets			298								353							320
Intangible fixed assets			0								0							0
Investments and other assets:
Investments in subsidiaries (stock)			2,173,575								2,161,485							2,180,500
Others			22								25							24

Total Non-current assets					2,173,897			95.54				2,161,866			97.75				2,180,845			98.84

	Total Assets				2,275,293			100.00				2,211,673			100.00				2,206,545			100.00

Liabilities and Stockholders’ equity

Liabilities:
Current liabilities
Short-term borrowings			—								2,000							—
Reserve for bonus			134								133							137
Others			340								2,429							355
Total Current liabilities					474			0.02				4,562			0.21				492			0.02

Total Liabilities					474			0.02				4,562			0.21				492			0.02

Stockholders’ equity:
Common stock					150,000			6.59				150,000			6.78				150,000			6.80
Capital surplus
Additional paid-in capital			1,511,485								2,011,485							2,011,485
Others			500,002								—							—

Total Capital surplus					2,011,487			88.41				2,011,485			90.95				2,011,485			91.16

Retained earnings
Voluntary reserve			4,994								—							—
Unappropriated retained earnings			149,370								49,119							49,605

Total retained earnings					154,364			6.78				49,119			2.22				49,605			2.25

Treasury stock					(41,033	)		(1.80	)			(3,493	)		(0.16	)			(5,038	)		(0.23	)

Total stockholders’ equity					2,274,818			99.98				2,207,111			99.79				2,206,053			99.98

Total Liabilities and Stockholders’ equity					2,275,293			100.00				2,211,673			100.00				2,206,545			100.00

Non-Consolidated Interim Statement of Income


						(Yen in millions except percentages)

	For the six months ended					For the six months ended						For the year ended
	September 30, 2003					September 30, 2002						March 31, 2003

	Amount			Ratio		Amount				Ratio		Amount			Ratio

				%						%					%
Operating income:
Dividends received from subsidiaries		130,046					49,127						49,127
Fees received from subsidiaries		1,600					1,900						3,800

Total Operating income			131,646		100.00		51,027				100.00			52,928		100.00

Operating expenses:
General and administrative expenses			1,130					1,950			3.82			3,057		5.78

Operating profit			130,516		99.14			49,077			96.18			49,870		94.22

Non-operating income			6		0.01			41			0.08			95		0.18
Non-operating expenses			15		0.01			1			0.00			1		0.00

Ordinary profit			130,507		99.14			49,118			96.26			49,964		94.40

Extraordinary losses			35		0.03			—			—			—		—

Income before income taxes			130,472		99.11			49,118			96.26			49,964		94.40
Income taxes—current		157					89						484
Income taxes—deferred		31

Total income taxes			188		0.14			(0	)					359		0.68

Net income			130,283		98.96			49,119			96.26			49,605		93.72

Unappropriated retained earnings at the beginning of the period			19,086					—						—

Unappropriated retained earnings at the end of the period			149,370					49,119						49,605

Notes to the non-consolidated financial statements

Basis for presentation and principals of financial statements

1. Valuation of securities

Investments in subsidiaries are stated at cost determined by the moving-average method.

2. Depreciation for fixed assets

Depreciation of tangible fixed assets other than buildings(excluding auxiliary facilities attached to the building) is computed using the declining-balance method principally over the following useful lives.


Equipment and furnitures		3 to 15 years
Buildings		8 to 18 years

3. Reserve

In order to prepare for employees’ bonus payments, Millea Holdings accrues for reserve for employees’ bonuses based on the estimated amount of payment attributable to the six months ended September 30, 2003.

4. Lease transactions

Finance lease transactions other than those which are deemed to transfer the ownership of the leased property to lessees are accounted for by a method similar to that applicable to the ordinary lease transactions.

5. Consumption taxes

Consumption Taxes and local consumption taxes are accounted for by the tax-segregated method.

Notes to non-consolidated balance sheet

1. Accumulated depreciation of tangible fixed assets amounted to 87 million yen.

2. On April 1, 2003, the Company acquired the life insurance subsidiary management business from Tokio Marine and

Nichido Fire, and on the same day, the Company acquired the Asian insurance subsidiary management business from Tokio Marine.

As a result of the accounting treatment pursuant to “Accounting for Division of Corporations” (Japanese Institute of Certified Public Accountants, March 31, 2001) for the above transaction, voluntary reserve after appropriation of retained earnings in the amount of 12,000 million yen decreased by 7,005 million yen to 4,994 million yen.

3. All amounts less than one million yen are rounded down.

Notes to non-consolidated statement of income

1. Depreciation expenses
Tangible Fixed Assets: 25 million yen

2. All amounts less than one million yen are rounded down.

Securities

Investments in subsidiaries are non-marketable securities.

Item 4

[English translation]

November 21, 2003

Summary of Non-Consolidated Business Results of Tokio Marine under Japanese GAAP
for the Six Months Ended September 30, 2003

Company Name: Millea Holdings, Inc. reporting the non-consolidated business results of its wholly owned subsidiary, The Tokio Marine and Fire Insurance Company, Limited (Tokio Marine)

Securities Code Number: 8766
Stock Exchange Listings: Tokyo and Osaka
Head Office: Tokyo, Japan
Representative: Kunio Ishihara, President, Millea Holdings, Inc. / Kunio Ishihara, President, Tokio Marine
Contact: Masayuki Ito, Corporate Planning Dept., Millea Holdings, Inc. Phone 03-6212-3341
Yoji Ishihara, Corporate Accounting Dept., Tokio Marine Phone 03-3285-0094
Date of the Board of Directors’ meeting to approve the non-consolidated financial statements for the six months: November 21, 2003
Interim dividends system: Established
New unit (Tangen-kabu) system: Established (1 unit = 1,000 shares)

1. Non-Consolidated Business Results for the Six Months ended September 30, 2003

(from April 1, 2003 to September 30, 2003)

(1) Non-consolidated results of operations


	(Yen in millions except per share data and percentages)

	For the six months ended
							For the year ended
	September 30, 2003			September 30, 2002			March 31, 2003

Net premiums written		742,373			713,526			1,469,685
(change from corresponding period of the previous year)		4.0	%		7.8	%		8.9	%
Ordinary profit		74,718			120,552			158,128
(change from corresponding period of the previous year)		(38.0	)%		145.8	%		125.2	%
Net income		42,890			78,693			97,277
(change from corresponding period of the previous year)		(45.5	)%		144.7	%		148.3	%
Net income per common share — basic (yen)		27.68			50.78			62.77

The amount less than respective unit are rounded down and the rates less than respective unit are rounded off.


Notes:	1.	Average number of shares outstanding:
		For the six months ended September 30, 2003	1,549,692,481
		For the six months ended September 30, 2002	1,549,692,481
		For the year ended March 31, 2003	1,549,692,481
	2.	Change in accounting method:	None

(2) Dividends payment

(Yen)

For the six months ended

For the year ended

September 30, 2003

September 30, 2002

March 31, 2003

Dividends paid per share for the six months

51.63

25.70

—

Dividends paid per share for the year

—

92.81

(3) Non-consolidated financial conditions


	(Yen in millions except per share data and percentages)

	For the six months ended
						For the year ended
	September 30, 2003			September 30, 2002		March 31, 2003

Total assets		6,990,135			7,068,776		6,864,017
Stockholders’ equity		1,579,877			1,617,066		1,532,556
Ratio of stockholders’ equity to total assets		22.6	%		22.9		22.3	%
Stockholders’ equity per share (yen)		1,019.48			1,043.48		988.94


Notes:	1.	Number of shares outstanding as of:
		September 30, 2003	1,549,692,481
		September 30, 2002	1,549,692,481
		March 31, 2003	1,549,692,481
	2.	Number of treasury stocks outstanding as of:
		September 30, 2003	None
		September 30, 2002	None
		March 31, 2003	None

2. Non-consolidated business forecast for the year ending March 31, 2004


	(Yen in millions)

Net premiums written	Ordinary profit		Net income

1,510,000		102,000		53,000

Summary of Non-Consolidated Business Results for the Six Months ended September 30, 2003


											(Yen in millions, except percentages)

Period				Six months ended			Six months ended			Increase/						Year ended
Item				Sept. 30, 2003			Sept. 30, 2002			Decrease			Change			March 31, 2003

Direct premiums including deposit premiums					858,743			860,519			(1,775	)		(0.2	)%		1,740,995
Direct premiums					752,046			760,000			(7,954	)		(1.0	)		1,528,005

Ordinary income and expenses:
	Underwriting income				876,716			842,352			34,364			4.1			1,738,486
		Net premiums written			742,373			713,526			28,847			4.0			1,469,685
		Investment deposits funded			106,697			100,518			6,178			6.1			212,989
	Underwriting expenses				723,879			715,675			8,203			1.1			1,473,097
		Net claims paid			356,432			340,855			15,577			4.6			710,473
		Loss adjustment expenses			31,188			30,128			1,060			3.5			57,703
		Agency commissions and brokerage			118,786			120,101			(1,314	)		(1.1	)		239,445
		Maturity refunds to policyholders			128,273			157,238			(28,965	)		(18.4	)		424,774
	Investment income				44,735			154,355			(109,620	)		(71.0	)		189,957
		Interest and dividend income			46,719			61,373			(14,654	)		(23.9	)		116,286
		Profit on sales of securities			18,698			115,394			(96,695	)		(83.8	)		119,345
	Investment expenses				3,967			36,136			(32,168	)		(89.0	)		55,460
		Losses on sales of securities			720			3,785			(3,065	)		(81.0	)		8,088
		Losses on valuation of securities			903			24,520			(23,616	)		(96.3	)		42,927
	Underwriting and general administrative expenses				127,794			133,037			(5,243	)		(3.9	)		258,196
		Those related to underwriting			114,113			119,102			(4,988	)		(4.2	)		230,592
	Other ordinary income and expenses				8,908			8,693			214			2.5			16,439
		Ordinary profit			74,718			120,552			(45,833	)		(38.0	)		158,128
			Underwriting profit		40,963			8,091			32,871			406.2			35,053

Extraordinary income and losses:
	Extraordinary income				370			6,331			(5,961	)		(94.2	)		10,277
	Extraordinary losses				11,657			7,162			4,495			62.8			24,360.0
	Extraordinary income and losses				(11,287	)		(830	)		(10,456	)		—			(14,083	)

Income before income taxes					63,431			119,721			(56,290	)		(47.0	)		144,045
Income taxes — current					22,028			68,386			(46,358	)		(67.8	)		79,254
Income taxes — deferred					(1,487	)		(27,358	)		25,871			—			(32,485	)
Net income					42,890			78,693			(35,803	)		(45.5	)		97,277

Unappropriated retained earnings at beginning of					43,839			73,409			(29,570	)		(40.3	)		73,409
Dividends paid for the six months					—			39,827			(39,827	)		(100.0	)		39,827
Provision for legal reserve for dividend payments					—			7,965			(7,965	)		(100.0	)		7,965
Unappropriated retained earnings at end of					86,729			104,311			(17,582	)		(16.9	)		122,894

Ratios:
	Net loss ratio				52.2	%		52.0	%								52.3	%
	Net expense ratio				31.4			33.5									32.0

Note: Underwriting profit = Underwriting income — (Underwriting expenses + Operating expenses and general and administrative expenses related to underwriting) + Other income and expenses. Other income and expenses mainly consists of income tax expense arising from underwriting compulsory automobile insurance.

(Non-Consolidated basis)
Direct premiums written (not including deposit premiums)


											(Yen in millions, %)

	For the six months ended

	September 30, 2003					September 30, 2002					For the year
											ended
	Amount		change			Amount		change			March 31, 2003

Fire and allied lines		89,916		2.2			87,951		(0.3	)		195,140
Hull and cargo		32,293		9.2			29,581		5.5			62,059
Personal accident		67,736		(3.6	)		70,287		1.2			126,859
Voluntary automobile		341,291		(2.1	)		348,634		(0.2	)		697,112
Compulsory automobile liability		118,556		0.1			118,389		21.4			234,789
Other		102,251		(2.8	)		105,156		8.8			212,043

Total		752,046		(1.0	)		760,000		4.2			1,528,005

Net premiums written


											(Yen in millions, %)

	For the six months ended

	September 30, 2003					September 30, 2002					For the year
											ended
	Amount		change			Amount		change			March 31, 2003

Fire and allied lines		80,511		2.1			78,892		11.5			172,118
Hull and cargo		28,752		5.6			27,238		8.6			57,073
Personal accident		65,903		(3.1	)		68,006		0.9			122,441
Voluntary automobile		337,194		(2.0	)		344,217		(0.2	)		688,039
Compulsory automobile liability		130,070		45.5			89,425		56.2			215,938
Other		99,940		(5.5	)		105,746		9.4			214,073

Total		742,373		4.0			713,526		7.8			1,469,685

Net claims paid


									(Yen in millions, %)

	For the six months ended

	September 30, 2003					September 30, 2002					For the year
											ended
	Amount		change			Amount		change			March 31, 2003

Fire and allied lines		26,329		(7.4	)		28,432		(3.6	)		62,045
Hull and cargo		19,506		50.5			12,960		(19.3	)		29,531
Personal accident		25,514		(2.4	)		26,145		(1.1	)		52,138
Voluntary automobile		184,719		(0.4	)		185,455		(4.6	)		384,545
Compulsory automobile liability		47,786		28.1			37,296		7.5			76,057
Other		52,577		4.0			50,565		(2.3	)		106,154

Total		356,432		4.6			340,855		(3.4	)		710,473

Loss ratio


								(%)

	For the six months ended
								For the year
	September 30,		September 30,					ended
	2003		2002		Change			March 31, 2003

Fire and allied lines		34.1		37.6		(3.4	)		37.4
Hull and cargo		71.0		51.0		20.0			54.9
Personal accident		41.5		41.7		(0.1	)		46.5
Voluntary automobile		59.6		58.4		1.3			60.2
Compulsory automobile liability		43.0		50.0		(7.1	)		41.5
Other		55.5		50.6		4.9			52.3

Total		52.2		52.0		0.2			52.3

Loss ratio=(Net claims paid+Loss adjustment expenses)/Net premiums written×100

Non-Consolidated Interim Balance Sheets


																(Yen in millions, except percentages)

		As of September 30, 2003						As of September 30, 2002											As of March 31, 2003
														Increase/
		Amount			Ratio			Amount			Ratio				Decrease			Amount			Ratio

					%						%										%
Assets
Cash, deposits and savings			375,197			5.37			452,110			6.40				(76,913	)		235,157			3.43
Call loans			548,100			7.84			526,400			7.45				21,700			439,800			6.41
Monetary receivables bought			70,220			1.00			75,000			1.06				(4,779	)		78,948			1.15
Money trust			26,629			0.38			44,337			0.63				(17,708	)		43,589			0.64
Securities			4,585,362			65.60			4,555,163			64.44				30,199			4,495,726			65.50
Loans			627,407			8.98			585,455			8.28				41,951			648,603			9.45
Property and equipment			273,008			3.91			282,543			4.00				(9,534	)		271,968			3.96
Other assets			500,027			7.15			564,071			7.98				(64,044	)		601,976			8.77
Deferred tax assets			—			—			—			—				—			63,060			0.92
Customers’ liabilities under acceptances and guarantees			14,637			0.21			25,543			0.36				(10,906	)		20,408			0.30
Reserve for bad debts			(30,455	)		(0.44	)		(41,850	)		(0.59	)			11,394			(35,221	)		(0.51	)

Total assets			6,990,135			100.00			7,068,776			100.00				(78,641	)		6,864,017			100.00

Liabilities
Underwriting funds			4,386,205			62.75			4,327,122			61.21				59,082			4,299,686			62.64
	Outstanding claims		541,255						527,849										538,127
	Underwriting reserves		3,844,949						3,799,273										3,761,559
Bonds issued			110,000			1.57			110,000			1.56				—			110,000			1.60
Other liabilities			645,299			9.23			763,688			10.80				(118,389	)		676,139			9.85
Reserve for retirement benefits			159,216			2.28			164,680			2.33				(5,463	)		161,580			2.35
Reserve for employee’s bonuses			18,702			0.27			17,625			0.25				1,077			14,618			0.21
Reserve under the special law			54,971			0.79			42,741			0.60				12,230			49,027			0.71
	Reserve for price fluctuation		54,971						42,741										49,027
Deferred tax liabilities			21,224			0.30			308			0.00				20,916			—			—
Acceptances and guarantees			14,637			0.21			25,543			0.36				(10,906	)		20,408			0.30

Total liabilities			5,410,258			77.40			5,451,710			77.12				(41,451	)		5,331,461			77.67

Stockholders’ equity
Common stock			101,994			1.46			101,994			1.44				—			101,994			1.49
Capital surplus			38,782			0.55			38,782			0.55				—			38,782			0.57
	Additional paid-in capital		38,782						38,782										38,782
Retained earnings			670,103			9.59			756,022			10.70				(85,918	)		774,605			11.29
	Surplus reserve		63,211						49,431										49,431
	Voluntary reserve		520,162						602,279										602,279
	Interim unappropriated retained earnings		86,729						104,311										122,894
Unrealized gains on investments, net of taxes			768,995			11.00			720,266			10.19				48,728			617,173			8.99

Total stockholders’ equity			1,579,877			22.60			1,617,066			22.88				(37,189	)		1,532,556			22.33

Total liabilities and stockholders’ equity			6,990,135			100.00			7,068,776			100.00				(78,641	)		6,864,017			100.00

Non-Consolidated Interim Statements of Income


												(Yen in millions)

			For the six months ended September 30,
												For the year ended
			2003			2002						March 31, 2003
									Increase/
			Amount			Amount			Decrease			Amount

Ordinary income and expenses
Ordinary income				931,618			1,007,757			(76,138	)		1,949,043
	Underwriting income			876,716			842,352			34,364			1,738,486
		Net premiums written		742,373			713,526			28,847			1,469,685
		Deposit premiums from policyholders		106,697			100,518			6,178			212,989
		Investment income on deposit premiums from policyholders		27,584			28,253			(668	)		55,687
		Reversal of underwriting reserves					—
	Investment income			44,735			154,355			(1,096,620	)		189,957
		Interest and dividends received		46,719			61,373			(14,654	)		116,286
		Profit on sales of securities		18,698			115,394			(96,695	)		119,345
		Transfer of Investment income on deposit premiums from policyholders		(27,584	)		(28,253	)		668			(55,687	)
	Other ordinary income			10,166			11,048			(882	)		20,599
Ordinary expenses				856,900			887,205			(30,304	)		1,790,914
	Underwriting expenses			723,879			715,675			8,203			1,473,097
		Net claims paid		356,432			340,855			15,577			710,473
		Loss adjustment expenses		31,188			30,128			1,060			57,703
		Agency commissions and brokerage		118,786			120,101			(1,314	)		239,445
		Maturity refunds to policyholders		128,273			157,238			(28,965	)		424,774
		Dividends to policyholders		30			33			(3	)		58
		Provision for outstanding claims		3,128			15,969			(12,840	)		26,247
		Provision for underwriting reserves		83,390			48,591			34,798			10,876
	Investment expenses			3,967			36,136			(32,168	)		55,460
		Loss on sales of securities		720			3,785			(3,065	)		8,088
		Loss on revaluation of securities		903			24,520			(23,616	)		42,927
	Underwriting and general administrative expenses			127,794			133,037			(5,243	)		258,196
	Other ordinary expenses			1,258			2,355			(1,096	)		4,160
Ordinary profit				74,718			120,552			(45,833	)		158,128

Extraordinary gains and losses
Extraordinary gains				370			6,331			(5,961	)		10,277
Extraordinary losses				11,657			7,162			4,495			24,360
	Provision for reserve under the special law			5,944			6,134			(190	)		12,420
		Provision for reserves for price fluctuation		5,944			6,134			(190	)		12,420
	Devaluation losses on investments in affiliates			4,275			—			4,275			—

Income before income taxes				63,431			119,721			(56,290	)		144,045
Income taxes — current				22,028			68,386			(46,358	)		79,254
Income taxes — deferred				(1,487	)		(27,358	)		25,871			(32,485	)

Net income				42,890			78,693			(35,803	)		97,277

Unappropriated retained earnings at beginning of				43,839			73,409			(29,570	)		73,409
Dividends paid for the six months				—			39,827			(39,827	)		39,827
Provision for legal reserve for dividend payments				—			7,965			(7,965	)		7,965
Unappropriated retained earnings at end of				86,729			104,311			(17,582	)		122,894

Important Notes for the Compilation of Interim Financial Statements

1. Securities Valuation Standards and Valuation Methods
(1) Investments in subsidiaries and affiliates are stated at cost determined by the moving-average method.
(2) Securities other than trading securities, held-to-maturity debt securities and investments in subsidiaries and affiliates (hereinafter referred to as “other securities”) with market value are stated at quoted price as of the end of the six months.
Unrealized gains on the securities are included in stockholders’ equity, net of income taxes, and costs of securities sold are determined based on the moving-average method.
(3) “Other securities” with no market value are stated at cost or amortized cost (straight-line method) determined by the moving-average method.
(4) The valuation of the securities held in individually managed money trusts that invest in securities mainly for the purpose of trading, are accounted for by the market-to-market method.

2. Derivatives Valuation Standards and Valuation Methods
Derivative financial instruments are accounted for by the mark-to-market method.

3. Depreciation Method for Property and Equipment
Depreciation of property and equipment is computed by the declining balance method. However, depreciation of the buildings (excluding leasehold improvements and auxiliary facilities attached to buildings) which were acquired on or after April 1, 1998 is calculated by the straight-line method.
When applying the declining balance method, depreciation expense is accounted for by allocating the estimated annual depreciation expense at the point of the six months end in proportion to the length of the term.

4. Reserve Accounting Standards
(1) Reserve for bad debts
In order to provide for losses from bad debts, reserve for bad debts is accounted for pursuant to the rules of asset self-assessment and asset write off and allowance as follows:
For claims to a debtor who is in formal bankruptcy or any other bankruptcy related proceedings such as a stay order from a clearing house, and for receivables from an insolvent debtor who is not involved in such formal proceedings, the amount equal to the claims less the amount likely to be collected through collateral or applicable guarantee is reserved.
For claims to a debtor who is likely to be insolvent in the near future, the amount which is likely to be necessary considering the debtor’s overall situation, within the amount equal to the claims less the amount likely to be collected through collateral or applicable guarantees, is reserved.
For claims other than those described above, the amount of claims multiplied by the default rate, which is computed based on loss experience in certain previous periods, is reserved.
For overseas claims made, a reserve for specified overseas claims (including a reserve for overseas investment losses under Article 55-2 of the Special Taxation Measures Law) is provided considering possible losses arising from political or economic turmoil in foreign countries.
All claims are assessed by the asset management departments in accordance with the rules of asset self-assessment and then audited by the asset auditing departments, which are independent from those asset management departments. The Reserves for bad debts mentioned above are computed based on the results of this assessment.
(2) Reserve for retirement benefits
The reserve for retirement benefits is recognized and stated at the amount accrued at the end of the current six months, based on projected benefit obligation and the estimated pension funds at the end of the current fiscal year.
Prior service costs are accounted for as expenses at the time of occurrence using the straight-line method over a certain length of years (15 years) within the average remaining work period employees.
Actuarial differences are accounted for as expenses in the next period using the straight-line method over a certain length of years (15 years) within the average remaining employment period of employees.
(3) Reserve for employees’ bonuses
In order to prepare for employee bonus payments, Tokio Marine accrues for reserve for employees’ bonuses based on the estimated amount of payment.
(4) Reserve for price fluctuation
Tokio Marine provides reserves under Article 115 of the Japanese Insurance Business Law in order to provide

for possible losses arising from price fluctuation of stock etc.

5. Consumption tax
Consumption tax is accounted for by the tax-segregated method, except for loss adjustment expenses and underwriting and general administrative expenses.
The undeductible consumption tax in respect of assets is included in other assets (the suspense payments) and amortized evenly over five years.

6. Lease transaction treatment method
Finance lease transactions other than those which are deemed to transfer the ownership of the leased property to lessees are accounted for by a method similar to that applicable to the ordinary operating lease transactions.

7. Hedge accounting method
To mitigate interest rate fluctuation risks associated with long-term insurance policies, Tokio Marine engages in asset liability management (“ALM”) that controls the risks by evaluating and analyzing financial assets and insurance liabilities simultaneously. Interest rate swap transactions that are used to manage the risks are accounted for by the deferred method and hedge effectiveness is evaluated based on the industry-classified auditing committee bulletin No. 26 “Accounting and Auditing Treatments related to Adoption of Accounting for Financial Instruments in the Insurance Industry (Japanese Institute of Certified Public Accountants, September 3, 2002)” (hereinafter, “Bulletin No. 26”). Hedge effectiveness evaluation is performed based upon a consideration of the interest rate as influenced by the theoretical stock price value calculation for both the hedged items and the hedging instruments. Further in respect of the deferred hedge profit at the end of the previous fiscal year arising under the industry-classified auditing committee bulletin No. 16 “Tentative Accounting and Auditing Treatments related to Adoption of Accounting for Financial Instruments in the Insurance Industry (Japanese Institute of Certified Public Accountants, March 31, 2000)” that was applied prior to Bulletin 26 under the interim measures in Bulletin 26, this will be realized as a gain or loss using the straight-line method over the hedging instruments remainder period (1 to 17 years). Further under these interim measures the deferred hedge gain, at the end of this interim accounting period, is 106,000 million yen and the realized gain for the same period is 8,972 million yen.
Tokio Marine applies deferred hedge accounting to interest rate swap transactions used to control interest rate risk of bonds issued. Hedge effectiveness is evaluated by comparative analysis of change in market value of the hedging instruments and the related hedged items.

8. Tax effect accounting items
Income taxes-current and Income taxes-deferred for the current six months are calculated assuming additions to or deductions from the surplus reserve for contraction of fixed assets.

Notes to the Interim Balance Sheet

1. The accumulated depreciation on property and equipment is 248,522 million yen and the advanced depreciation amount is 16,984 million yen. Further in this interim accounting period for property and equipment acquired on which premiums have been paid the advance depreciation amount from which the acquisition value has been deducted is 0 million yen.

2. The set off amount for consumption tax related to gains and for deductible consumption tax related to equity has been accounted for as other liabilities and the non-deductible amount has been accounted for as other equity.

3. Assets pledged as collateral are securities 250,102 million yen and deposits 597 million yen. Amongst these, the margins on securities pledged as a substitute for futures trading are 57,622 million yen and securities pledged for settlement of the current account of Bank of Japan and Real-Time Gross Settlement System for government bonds are 131,665 million yen.
Further secured debts are payment reserves 1,107 million yen, liability reserves 20,143 million yen and other liabilities 135 million yen.

4. Where among the subsidiaries, the amount of net assets has been reduced to below the fixed amount, or where the amount of liquid assets required to pay debts is insufficient, a support agreement promising to provide funds to each company has been entered into. The amount of debt for each of these companies at the end of this interim accounting period under these agreements is as set forth below:


Tokio Marine Financial Solutions Ltd.		93,305 million yen
Tokio Marine Global Re Limited		22,728 million yen
Tokio Millennium Re Ltd.		4,739 million yen

Total		120,773 million yen

These agreements do not guarantee payment of each company’s liabilities and at the end of this interim accounting period each company’s net amount of assets is being maintained above the fixed amount and there has been no insufficiency of liquid assets.

5. Total amount of loans to borrowers in bankruptcy, past due loans, accruing loans contractually past due for 3 months or more, and restructured loans is 54,048 million yen. The breakdown is as follows:

	(1)		The amount of loans to borrowers in bankruptcy is 6,961 million yen. Loans are generally placed on non-accrual status when substantial doubt exists as to the ultimate collectibility of either principal or interest, if they are past due for certain period, or for other reasons. Loans to borrowers in bankruptcy represent non-accrual loans after the partial write-off for the position are deemed uncorrectable, which are defined in Article 96, Paragraph 1, Subparagraphs 3 Items 1 through 5 and Subparagraph 4 of the Enforcement Ordinance for the Corporation Tax Law (Cabinet Order No. 97 of 1965).
	(2)		The amount of past due loans is 39,334 million yen. Past due loans are non-accrual status loans other than loans to borrowers in bankruptcy and loans for which interest payments are deferred in order to assist the financial recovery of borrowers in financial difficulties.
	(3)		The amount of loans contractually past due for 3 months or more is 158 million yen. Loans contractually past due for 3 months or more do not include loans classified as loans to borrowers in bankruptcy or past due loans.
	(4)		The amount of restructured loans is 7,594 million yen. Restructured loans are loans on which concessions (e.g. reduction of the stated interest rate, deferral of interest payment, extension of the maturity date, forgiveness of debt) are made to the borrowers in financial difficulties to assist them in their financial recovery, improving their ability to repay to the creditors. Restructured loans do not include loans classified as loans to borrowers in bankruptcy, past due loans or loans past due for 3 months or more.

6. Gains or losses under hedge instruments are netted and accounted for as deferred hedge and included in other liabilities. Further the amounts of gross gains and loss on deferred hedge are 89,417 million yen and 172,752 million yen respectively.

7. Loaned securities totaled 213,739 million yen.

8. The balance of the commitments unused in respect of loan commitments is as follows:


Loan commitments total		7,150 million yen
The balance of loans in force		—

Total		7,150 million yen

9. On April 1, 2003, the life insurance subsidiary management business were transferred to Millea Holdings, and our wholly owned subsidiary, The Tokio Marine Life Insurance Company, Limited became a direct subsidiary of Millea Holdings. On the same day, the Asian insurance subsidiary management business was also transferred to Millea Holdings.
As a result of the accounting treatment pursuant to “Accounting for Division of Corporations” (Japanese Institute of Certified Public Accountants, March 31, 2001) for the above transactions, the amount of securities and retained earnings decreased 43,395 million yen and 43,391 million yen respectively.

(Interim Statements of Income Related)
Included in extraordinary loss is merger related expenses totaling 1,028 million yen.

Lease transactions

1. Finance leases other than which are deemed to transfer the ownership of the leased assets to lessees

(1) Amounts equivalent to acquisition cost, accumulated depreciation and year end balance are as follows:

(Yen in millions)

For the six months ended

For the year ended

September 30, 2003

September 30, 2002

March 31, 2003

Acquisition

Accumulated

Balance

Acquisition

Accumulated

Balance

Acquisition

Accumulated

Balance

Cost

depreciation

at end

Cost

depreciation

at end

Cost

depreciation

at end

Movables

15,205

10,095

5,110

19,423

11,887

7,536

16,264

10,088

6,176

Acquisition cost includes interest payable thereon because the balance of future lease payment at end represent insignificant proportion of total property and equipment asset at the end of respective period.

(2) Balance of future lease payment at end

(Yen in millions)

As at September 30, 2003

As at September 30, 2002

As at March 31, 2003

Due within one year

3,128

4,058

3,616

Due over one year

1,981

3,477

2,559

Total

5,110

7,536

6,176

Future lease payments include interest payable thereon because the balance of future lease payment at end represent insignificant proportion of total property and equipment asset at the end of respective period.

(3) Lease payments and depreciation equivalent

(Yen in millions)

For the six months ended

For the year ended

September 30, 2003

September 30, 2002

March 31, 2003

Lease payments paid

2,471

2,615

4,875

Depreciation equivalent

2,471

2,615

4,875

(4) Depreciation equivalent is computed using the straight line method with no residual value.

2. Operating Leases

Future lease payments


					(Yen in millions)
	As at September 30, 2003		As at September 30, 2002		As at March 31, 2003

Due within one year		1		2		2
Due over one year		0		1		1

Total		1		4		3

Securities

1. Bonds held to maturity with market value

None

2. Investments in subsidiaries and affiliates with market value

None

3. “Other securities” with market value


															(Yen in millions)

	As of September 30, 2003						As of September 30, 2002						As of March 31, 2003

	Acquisition		Carrying				Acquisition		Carrying				Acquisition		Carrying
	cost		value		Difference		cost		value		Difference		cost		value		Difference

Bonds		1,885,819		1,912,604		26,784		1,852,245		1,926,356		74,110		1,993,604		2,146,827		153,222
Stocks		823,742		1,995,567		1,171,825		795,717		1,825,216		1,029,499		778,565		1,572,809		794,244
Foreign securities		234,118		235,596		1,477		275,685		298,847		23,162		250,056		264,950		14,893
Other		135,274		139,722		4,447		133,808		134,347		538		136,715		139,485		2,769

Total		3,078,955		4,283,490		1,204,535		3,057,456		4,184,767		1,127,311		3,158,942		4,124,072		965,130

Notes: 1. “Other” include foreign mortgage securities which are presented as monetary receivables bought. The “Acquisition cost”, “Carrying value” and “Difference” of the foreign mortgage securities as of September 30, 2003 are 46,951 million yen, 48,902 million yen and 1,950 million yen, respectively.

2. Impairment losses amounting to 243 million yen were recognized for “Other securities” with market value for the six months ended September 30, 2003.
Impairment loss is accounted for principally if market value of each security was lower than 70% of its book value at the end of the period.

4. Carrying values of securities not valued at market value

(1) Securities held to maturity

None

(2) Investments in subsidiaries and affiliates

(Yen in millions)

As of September 30, 2003

As of September 30, 2002

As of March 31, 2003

Stocks

2,708

32,967

32,469

Foreign securities

114,171

134,378

131,426

(3) Other securities

(Yen in millions)

As of September 30, 2002

As of September 30, 2001

As of March 31, 2002

Bonds

—

Stocks

115,583

165,612

166,906

Foreign securities

52,426

38,541

37,809

Other

317,347

346,912

123,269

Note: “Other” include foreign mortgage securities which are presented as monetary receivables bought and negotiable deposit which are presented as cash, deposits and savings.
The acquisition cost of the foreign mortgage securities and the negotiable deposits as of September 30, 2003 are 6,462 million yen and 245,000 million, respectively.

Money trust

1. Money trusts held to maturity

None

2. Money trusts other than that held to maturity or for trading purposes

(Yen in millions)

Period

As of September 30, 2003

As of September 30, 2002

As of March 31, 2003

Acquisition

Carrying

Acquisition

Carrying

Acquisition

Carrying

Item

Cost

Value

Difference

Cost

Value

Difference

Cost

Value

Difference

Money trusts

—

45,414

44,237

(1,176

)

44,058

43,489

(568

)

Notes: 1. There are no money trusts valued at market value.

2. There are money trusts amounting to 100 million yen, as at September 30, 2003, which are carried at their original cost.

Contract amount, fair value and unrealized gains and losses of derivative financial instruments

(1) Foreign currency-related instruments


																					(Yen in millions)

					As of September 30, 2003								As of September 30, 2002								As of March 31, 2003

					Contract		Fair			Unrealized			Contract		Fair			Unrealized			Contract		Fair			Unrealized
					amount		value			gain/(loss)			amount		value			gain/(loss)			amount		value			gain/(loss)

Over-the-counter transactions:
	Foreign exchange forwards
		Short
			USD			72,240		794			794			146,208		(2,092	)		(2,092	)		102,973		(1,018	)		(1,018	)
			EUR			17,911		(77	)		(77	)		9,437		(222	)		(222	)		12,306		(202	)		(202	)
			GBP			1,562		(1	)		(1	)		17,878		(614	)		(614	)		20,908		(766	)		(766	)
			HKD			—		—			—			8,666		24			24			8,409		(96	)		(96	)
		Long
			EUR			12,582		(24	)		(24	)		14,487		302			302			7,618		91			91
			USD			12,178		(392	)		(392	)		34,755		600			600			10,940		(0	)		(0	)
			HKD			—		—			—			—		—			—			4,350		0			0
	Currency swaps
		Pay Foreign/ Rec. Yen
			USD			36,493		3,940			3,940			46,863		(1,620	)		(1,620	)		46,349		1,750			1,750
			AUD			20,000		(2,274	)		(2,274	)		—		—			—			20,000		(1,414	)		(1,414	)
	Currency options
		Short
			Call
				USD		—								8,320								—
						—		—			—			13		6			6			—		—			—
				EUR		—								16,708								—
						—		—			—			53		49			3			—		—			—
				GBP		—								6,491								—
						—		—			—			25		13			11			—		—			—
			Put
				USD		1,605								1,770								—
						5		6			(0	)		10		0			10			—		—			—
				EUR		—								567								—
						—		—			—			4		0			4			—		—			—
		Long
			Call
				USD		—								4,972								—
						—		—			—			20		17			(2	)		—		—			—
				EUR		—								13,327								—
						—		—			—			85		105			20			—		—			—
				GBP		—								4,836								—
						—		—			—			31		28			(2	)		—		—			—
			Put
				USD		39,317								1,187								—
						184		486			301			9		0			(9	)		—		—			—
				GBP		16,335
						173		241			68

Total						230,226		2,698			2,333			336,476		(3,400	)		(3,580	)		233,857		(1,656	)		(1,656	)

(2) Interest rate-related instruments


																						(Yen in millions)

				As of September 30, 2003								As of September 30, 2002								As of March 31, 2003

				Contract		Market/			Unrealized			Contract		Market/			Unrealized			Contract		Market/			Unrealized
				amount		Fair value			gain/(loss)			amount		Fair value			gain/(loss)			amount		Fair value			gain/(loss)

Market transactions:
	Interest futures
		Long			1,580		(1	)		(1	)		—		—			—			—		—			—
		Short			32,779		147			147			—		—			—			—		—			—
	Interest futures options
		Long
			Call		130,996								70,235								—
					24		39			(15	)		20		35			(15	)		—		—			—
			Put		—								59,154								—
					—		—			—			6		0			5			—		—			—
		Short
			Call		145,198								70,235								—
					51		105			54			22		39			16			—		—			—
			Put		25,256								59,461								—
					7		2			(4	)		20		0			(19	)		—		—			—
Over-the-counter transactions:
	Interest rate swap
		Pay.float/Rec.fix			1,940,180		103,728			103,728			1,834,445		164,186			164,186			1,918,055		188,890			188,890
		Pay.fix/Rec.float			1,132,592		(35,584	)		(35,584	)		1,221,945		(60,500	)		(60,500	)		1,104,255		(67,817	)		(67,817	)

Total					3,408,583		68,438			68,324			3,315,477		103,761			103,673			3,022,310		121,073			121,073

(Yen in millions)

As of September 30, 2003

As of September 30, 2002

As of March 31, 2003

Contract

Market/

Unrealized

Contract

Market/

Unrealized

Contract

Market/

Unrealized

amount

Fair value

gain/(loss)

amount

Fair value

gain/(loss)

amount

Fair value

gain/(loss)

Deferred hedge accounting in accordance with bulletin No. 16 under transitional treatment of bulletin No. 26

—

2,996,700

98,203

2,965,000

114,973

Deferred hedge accounting in accordance with bulletin No. 26

442,700

21,373

(28,121

)

—

49,495

—

Deferred hedge accounting in accordance with “Statement Concerning the Establishment of Accounting Standards on Financial Instruments (Business Accounting Deliberation Council, January 22, 1999)

50,000

3,707

54,300

5,285

50,000

6,099

Total

492,700

25,081

3,051,000

103,489

3,015,000

121,073

Deferred hedge gains on the balance sheets include the following.

(Yen in millions)

As of September 30, 2003

As of September 30, 2002

As of March 31, 2003

Balance of deferred hedge gains in accordance with bulletin No. 16 under transitional treatment of bulletin No. 26

56,505

—

Deferred gains which resulted from cancellation of derivatives for hedging purposes

1,748

2,190

1,970

Total

58,254

2,190

1,970

(3) Equity-related instruments


																						(Yen in millions)

				As of September 30, 2003								As of September 30, 2002								As of March 31, 2003

				Contract		Market/			Unrealized			Contract		Market/			Unrealized			Contract		Market/		Unrealized
				amount		Fair value			gain/(loss)			amount		Fair value			gain/(loss)			amount		Fair value		gain/(loss)

Market transactions:
	Equity index futures
		Short			13,952		269			269			14,386		278			278			13,631		632		632
		Long			7,913		(319	)		(319	)		704		(39	)		(39	)		—		—		—
	Equity index options
		Short
			Call		1,100								4,338								—
					25		20			5			31		19			12			—		—		—
			Put		—								1,132								—
					—		—			—			14		6			7			—		—		—
		Long
			Call		1,460								7,148								—
					28		20			(7	)		75		60			(14	)		—		—		—
			Put		—								246								—
					—		—			—			7		5			(2	)		—		—		—

Over-the-counter transactions:
	Equity options
		Long
			Call		171								171								171
					34		34			—			34		27			(6	)		34		34		—

Total					24,598		25			(52	)		28,128		358			234			13,803		666		632

(4) Bond-related instruments


																						(Yen in millions)

				As of September 30, 2003								As of September 30, 2002								As of March 31, 2003

				Contract		Market			Unrealized			Contract		Market			Unrealized			Contract		Market			Unrealized
				amount		value			gain/(loss)			amount		value			gain/(loss)			amount		value			gain/(loss)

Market transactions:
	Bond futures
		Short			22,521		(358	)		(358	)		26,890		(21	)		(21	)		22,064		(30	)		(30	)
		Long			20,746		574			574			15,224		112			112			—		—			—
	Bond future options
		Short
			Call		6,562								14,672								—
					14		35			(20	)		114		118			(3	)		—		—			—
			Put		1,326								2,721								—
					2		1			1			25		13			12			—		—			—
		Long
			Call		7,276								—								—
					20		39			18			—		—			—			—		—			—

Total					58,433		291			214			59,508		221			99			22,064		(30	)		(30	)

(5) Weather-related instruments


															(Yen in millions)

			As of September 30, 2003						As of September 30, 2002						As of March 31, 2003

			Contract		Fair		Unrealized		Contract		Fair		Unrealized		Contract		Fair		Unrealized
			amount		value		gain/(loss)		amount		value		gain/(loss)		amount		value		gain/(loss)

Over-the-counter transactions:
	Weather derivatives
		Short		1,743						141						31
				41		19		22		22		10		12		8		5		2

Total				1,743		19		22		141		10		12		31		5		2

(6) Credit-related instruments


																					(Yen in millions)

			As of September 30, 2003								As of September 30, 2002								As of March 31, 2003

			Contract		Fair			Unrealized			Contract		Fair			Unrealized			Contract		Fair			Unrealized
			amount		value			gain/(loss)			amount		value			gain/(loss)			amount		value			gain/(loss)

Over-the-counter transactions:
	Credit derivatives
		Short		2,118,860		(4,431	)		(4,431	)		1,261,270		(26,221	)		(26,221	)		1,900,124		(15,340	)		(15,340	)
		Long		408,553		(5,363	)		(5,363	)		376,890		7,686			7,686			413,875		1,778			1,778

Total				2,527,414		(9,794	)		(9,794	)		1,638,160		(18,534	)		(18,534	)		2,313,999		(13,561	)		(13,561	)

Notes: The fair value of the credit derivative transactions at the end of period is calculated mainly using internal evaluation model.

(7) Commodity-related instruments

None

Solvency margin ratio


								(Yen in millions, %)

		Six months ended
								For the year ended
		September 30, 2003			September 30, 2002			March 31, 2003

(A) Solvency Margin			3,034,731			3,177,183			2,912,620
	Total Equities (excluding the amount to be paid-out, deferred assets and unrealized gains on securities)		730,870			896,739			811,382
	Reserve for Price Fluctuation		54,971			42,741			49,027
	Reserves for Catastrophic Risk		740,019			689,375			706,181
	General Allowance for Bad Debts		4,187			8,071			7,618
	Unrealized Gains on Investments before Tax		1,083,092			1,014,460			869,258
	Unrealized Gains on Land		123,930			126,644			126,007
	Subordinated Debt		—			—			—
	Deduction		—			—			—
	Others		297,659			399,151			343,144
(B) Risks Square Root of (R1² + (R2 + R3)²) and R4 + R5			574,006			561,122			535,633
	General Insurance Risks (R1)		80,728			78,903			80,710
	Assumed Interest Rate Risks (R2)		5,145			5,438			5,105
	Asset Management Risks (R3)		279,361			290,671			257,181
	Business Administration Risks (R4)		12,617			12,346			11,847
	Catastrophic Insurance Risks (R5)		265,649			242,332			249,362
(C) Solvency Margin Ratio [(A)/(B)×1/2)]×100			1,057.4	%		1,132.4	%		1,087.5	%

Note: Numbers are calculated based on Articles 86 and 87 of the Enforcement Regulation of the Insurance Business Law and relevant ordinance.

Solvency Margin Ratio

Insurance companies make reserves for indemnity payment as well as for maturity refunds for deposit premiums, etc.

To maintain sufficient solvency, the reserves should be enough to meet the realization of risks exceeding their usual estimates such as catastrophe, large devaluation in their assets, etc.

Solvency Marigin Ratio is a measure calculated by dividing Risks ((B) above) which indicate “risks which will exceed their usual estimates” by total Solvency Margin ((A) above), based on the Insurance Business Law and relevant ordinance.

“Risks which will exceed their usual estimates” mentioned above are as follows;

(1) Insurance Risks:

Risks of occurrence of claims which exceed underwriting reserve.

(2) Assumed Interest Rate Risks:

Risks of not being able to secure the assumed interest rate, which forms the basis of calculation for underwriting reserve.

(3) Asset Management Risks:

Risks of fluctuation in value, credit risks, risks arising form subsidiaries, derivative transaction risks and reinsurance risk & recovery of reinsurance risk

(4) Business Administration Risks:

Risks of occurrence of losses beyond anticipation in business administration

(5) Catastrophic Risks:

Risks of losses caused by natural catastrophes such as earthquake, storm, flood, etc.

The solvency margin of non-life insurance companies represents their capital, reserves such as reserves for price fluctuation and catastrophe reserve, unrealized gains on investment, unrealized gains on land, etc.

Solvency Margin Ratio is one of the objective measures utilized by the supervisory authority in overseeing insurance companies. The business of an insurance company will be generally considered sound if the solvency margin ratio is 200% or more.

Information on bad debts


				(Yen in millions except percentages)

	September 30, 2003			September 30, 2002			March 31, 2003

Loans to borrowers in bankruptcy (A)		6,961			13,508			7,262
Past due loans (B)		39,334			46,118			39,792
Accrueing loans contractually past due for 3 months or more (C)		158			416			413
Restructured loans (D)		7,594			7,794			7,180
Total bad debts (E)=(A)+(B)+(C)+(D)		54,048			67,836			54,649
Total Loans (F)		627,407			585,455			648,603
Bad debts to total loan ratio (G)=(E)/(F)×100		8.6	%		11.6	%		8.4	%
Amount of collateral or applicable guarantees and reserve for bad debts (H)		49,665			61,760			49,660
Coverage ratio (I)=(H)/(E)×100		91.9	%		91.0	%		90.9	%


Notes:	1.	Definition of each loan is as follows.

	(1)	Loans to borrowers in bankruptcy

		Loans are generally placed on nonaccrual status when substantial doubt exists as to the ultimate collectibility of either principal or interest, if they are past due for certain period, or for other reasons. Loans to borrowers in bankruptcy represent nonaccrual loans after the partial write-off for the position are deemed uncollectible, which are defined in Article 96, Paragraph 1, Subparagraphs 3 and 4 of the Enforcement Ordinance for the Corporation Tax Law.

	(2)	Past due loans

		Past due loans are nonaccrual status loans other than loans to borrowers in bankruptcy and loans for which interest payments are deferred in order to assist the financial recovery of borrowers in financial difficulties.

	(3)	Accrueing loans contractually past due for 3 months or more

		Loans contractually past due for 3 months or more do not include loans classified as loans to borrowers in bankruptcy or past due loans.

	(4)	Restructured loans

		Restructured loans are loans on which concessions (e.g. reduction of the stated interest rate, deferral of interest payment, extension of the maturity date, forgiveness of debt) are made to the borrowers in financial difficulties to assist them in their financial recovery, improving their ability to repay to the creditors. Restructured loans do not include loans classified as loans to borrowers in bankruptcy, past due loans or loans past due for 3 months or more.

	2.	“Amount of collateral or applicable guarantees and reserve for bad debts” equals to sum of the expected recovery by relevant guarantee and the specific valuation allowances.

			The Tokio Marine and Fire Insurance Company, Limited (“Tokio Marine”)

			The Nichido Fire and Marine Insurance Company, Limited (“Nichido Fire”)

			The Tokio Marine Life Insurance Company, Limited (“Tokio Marine Life”)

			The Nichido Life Insurance Company, Limited (“Nichido Life”)

			Tokio Marine & Nichido Career Service Co., Ltd.

			Tokio Marine Asset Management Company, Limited

			Millea Asia Pte. Ltd.

			Trans Pacific Insurance Company

			Tokio Marine Europe Insurance Limited

			Tokio Marine Global Re Limited

			The Tokio Marine and Fire Insurance Company (Singapore) Pte. Limited

			The Tokio Marine and Fire Insurance Company (Hong Kong) Limited

			Tokio Marine Brasil Seguradora S.A.

			Tokio Millennium Re Ltd.

			Nichido Investment (Luxembourg) S.A.

			Tokio Marine Financial Solutions Ltd.

		(Name of the company)

		First Insurance Company of Hawaii, Ltd.

(1)		The amount of loans to borrowers in bankruptcy is 13,442 million yen. Loans are generally placed on nonaccrual status when substantial doubt exists as to the ultimate collectibility of either principal or interest, if they are past due for certain period, or for other reasons. Loans to borrowers in bankruptcy represent nonaccrual loans after the partial write-off for the position are deemed uncollectible, which are defined in Article 96, Paragraph 1, Subparagraphs 3 and 4 of the Enforcement Ordinance of the Corporation Tax Law.

(2)		The amount of past due loans is 43,446 million yen. Past due loans are nonaccrual status loans other than loans to borrowers in bankruptcy or loans for which interest payments are deferred in order to assist the financial recovery of borrowers in financial difficulties.

(3)		The amount of loans contractually past due for 3 months or more is 158 million yen. Loans contractually past due for 3 months or more do not include loans classified as loans to borrowers in bankruptcy or past due loans.

(4)		The amount of restructured loans is 7,950 million yen. Restructured loans are loans on which concessions (e.g. reduction of the stated interest rate, deferral of interest payment, extension of the maturity date, forgiveness of debt) are made to the borrowers in financial difficulties to assist them in their financial recovery, improving their ability to repay to the creditors. Restructured loans do not include loans classified as loans to borrowers in bankruptcy, past due loans or loans past due for 3 months or more.

	1.		Accumulated depreciation of tangible fixed assets amounted to 87 million yen.

	2.		On April 1, 2003, the Company acquired the life insurance subsidiary management business from Tokio Marine and

			Nichido Fire, and on the same day, the Company acquired the Asian insurance subsidiary management business from Tokio Marine.

			As a result of the accounting treatment pursuant to “Accounting for Division of Corporations” (Japanese Institute of Certified Public Accountants, March 31, 2001) for the above transaction, voluntary reserve after appropriation of retained earnings in the amount of 12,000 million yen decreased by 7,005 million yen to 4,994 million yen.

	3.		All amounts less than one million yen are rounded down.

	1.		Depreciation expenses Tangible Fixed Assets: 25 million yen

	2.		All amounts less than one million yen are rounded down.

1.		The accumulated depreciation on property and equipment is 248,522 million yen and the advanced depreciation amount is 16,984 million yen. Further in this interim accounting period for property and equipment acquired on which premiums have been paid the advance depreciation amount from which the acquisition value has been deducted is 0 million yen.
2.		The set off amount for consumption tax related to gains and for deductible consumption tax related to equity has been accounted for as other liabilities and the non-deductible amount has been accounted for as other equity.
3.		Assets pledged as collateral are securities 250,102 million yen and deposits 597 million yen. Amongst these, the margins on securities pledged as a substitute for futures trading are 57,622 million yen and securities pledged for settlement of the current account of Bank of Japan and Real-Time Gross Settlement System for government bonds are 131,665 million yen. Further secured debts are payment reserves 1,107 million yen, liability reserves 20,143 million yen and other liabilities 135 million yen.
4.		Where among the subsidiaries, the amount of net assets has been reduced to below the fixed amount, or where the amount of liquid assets required to pay debts is insufficient, a support agreement promising to provide funds to each company has been entered into. The amount of debt for each of these companies at the end of this interim accounting period under these agreements is as set forth below:

		These agreements do not guarantee payment of each company’s liabilities and at the end of this interim accounting period each company’s net amount of assets is being maintained above the fixed amount and there has been no insufficiency of liquid assets.

5.		Total amount of loans to borrowers in bankruptcy, past due loans, accruing loans contractually past due for 3 months or more, and restructured loans is 54,048 million yen. The breakdown is as follows:

6.		Gains or losses under hedge instruments are netted and accounted for as deferred hedge and included in other liabilities. Further the amounts of gross gains and loss on deferred hedge are 89,417 million yen and 172,752 million yen respectively.

7.		Loaned securities totaled 213,739 million yen.

8.		The balance of the commitments unused in respect of loan commitments is as follows:

			Acquisition cost includes interest payable thereon because the balance of future lease payment at end represent insignificant proportion of total property and equipment asset at the end of respective period.

	(2)		Balance of future lease payment at end

			Future lease payments include interest payable thereon because the balance of future lease payment at end represent insignificant proportion of total property and equipment asset at the end of respective period.

	(3)		Lease payments and depreciation equivalent


Notes:	1.	“Other” include foreign mortgage securities which are presented as monetary receivables bought. The “Acquisition cost”, “Carrying value” and “Difference” of the foreign mortgage securities as of September 30, 2003 are 46,951 million yen, 48,902 million yen and 1,950 million yen, respectively.

	2.	Impairment losses amounting to 243 million yen were recognized for “Other securities” with market value for the six months ended September 30, 2003. Impairment loss is accounted for principally if market value of each security was lower than 70% of its book value at the end of the period.

	(1)		Securities held to maturity

			None

	(2)		Investments in subsidiaries and affiliates

Notes:		1.		There are no money trusts valued at market value.
		2.		There are money trusts amounting to 100 million yen, as at September 30, 2003, which are carried at their original cost.