09 04-12 tokiomarine results-q1-1

August 10, 2012

(URL: http://www.tokiomarinehd.com/)

Representative:

Contact:

Scheduled date for filing the quarterly securities report (Shihanki Houkokusho) for the three months ended June 30, 2012: August 10, 2012

(Note) All amounts are truncated and all ratios are rounded.

1. Consolidated Business Results for the three months ended June 30, 2012 (April 1, 2012 to June 30, 2012)

(1) Consolidated Results of Operations (Note) Ratios reflect changes from the same periods in the previous fiscal year.

Ordinary income Ordinary profit Net income

% % %

Three months ended June 30, 2012


(Note) Comprehensive income:

Three months ended June 30, 2012 (50,528)

Three months ended June 30, 2011 62,988

Net income per share -

Basic

Net income per share -

Diluted

yen yen



(2) Consolidated Financial Conditions

Total assets Net assets

%

As of June 30, 2012

As of March 31, 2012

(Reference purpose only) Equity capital:

As of June 30, 2012


2. Dividends

yen yen

Fiscal year ended March 31, 2012

Fiscal year ending March 31, 2013

Fiscal year ending March 31, 2013

(Forecasts)

3. Consolidated Business Forecast for the fiscal year ending March 31, 2013 (April 1, 2012 to March 31, 2013)

(Note) Ratios reflect changes from the previous fiscal year.

For the fiscal year ending March 31, 2013 136.88

(Note) No changes have been made to the consolidated business forecast announced on May 18, 2012.

165,000 2.9 105,000 1,649.5

% million yen % yen

Ordinary profit Net income Net income per share

-

- 27.50

-

Quarterly IR Conference Call: To be held (for analysts)

Cash dividends per share

50.00

1,768,461 million yen

(Note) No changes have been made to the forecasted amounts of dividends announced on May 18, 2012.

55.0027.50

-

million yen

Shuzo Sumi,

71.91

43.87

President

Supplementary information for quarterly financial statements: Available

(2.2)

yen 　　 yen

1,787,862

Annual total

43.91

55,148

10.3

- 25.00

Corporate Planning Dept., Tokio Marine Holdings, Inc. Phone: 03-5223-3212Shusuke Kasahara,

83,824959,902

(38.9)33,682

Scheduled date for starting payment of dividends: Not applicable.

(39.0)(4.5)917,063

Company Name: Tokio Marine Holdings, Inc. (the "Company") Stock Exchange Listings: Tokyo and Osaka

Securities Code Number: 8766

Ratio of equity to total assets

17,210,907

1,857,465

1,839,604 million yen

First quarter Second quarter Year-end

11.316,338,460

-

Third quarter

25.00

　　yen

　　million yenmillion yen 　　million yen

million yen

million yen

(4.7)

Summary of Consolidated Business Results of Tokio Marine Holdings, Inc.

under Japanese GAAP for the three months ended June 30, 2012

(0.3)

million yen

71.86

million yen

51,152

※※※※　Ｎｏｔｅｓ　Ｎｏｔｅｓ　Ｎｏｔｅｓ　Ｎｏｔｅｓ

(a) Changes in accounting policies to reflect amendments of accounting standards and related matters: Yes

(b) Changes in accounting policies other than (a): None

(4) Number of shares issued (common share)

769,524,375 shares

804,524,375 shares

(b) Number of treasury shares held

2,474,161 shares

37,596,309 shares

(c) Average number of shares outstanding

766,967,808 shares

766,857,652 shares

(2) Adoption of special accounting methods that can be applied to quarterly consolidated financial reports: None

This “Summary of Consolidated Business Results” (quarterly “ tanshin ”) is outside the scope of the external auditor’s quarterly audit procedure

required by the Financial Instruments and Exchange Act. The quarterly audit process has been completed as of the date of the disclosure in the

“Summary of Consolidated Business Results”.

*Disclosure regarding the execution of the quarterly audit process

*Notes concerning the business forecast and other items

(3) Changes in accounting policies, changes in accounting estimates, and retrospective restatements

　　　(Note) The changes above fall under "Changes in accounting policies which are difficult to distinguish from changes in accounting

estimates" set forth in article 10-5 of the Regulations Concerning Terminology, Forms and Preparation Methods of Quarterly

Consolidated Financial Statements. Please see "Changes in accounting policies, changes in accounting estimates, and

retrospective restatements" for details.

(a) Total number of the shares issued (including treasury shares)

As of June 30, 2012


As of June 30, 2012

(c) Changes in accounting estimates: Yes

(d) Retrospective restatements: None

Any business forecasts contained in this document are based on information available to the Company as of the date of this document and certain

assumptions, and actual results may materially differ from the forecasts depending upon various factors.

(1) Significant changes with respect to the subsidiaries of the Company (changes in Specified Subsidiaries (“tokutei kogaisha”) that resulted

in a change in the scope of consolidation) during the three months ended June 30, 2012: None


During the three months ended June 30, 2012

During the three months ended June 30, 2011

Contents of Appendix

1. Qualitative information concerning the consolidated business results for the three months

ended June 30, 2012 ················································································································ 2

(1) Qualitative information concerning the consolidated results of operations ·························· 2

(2) Qualitative information concerning the consolidated financial condition ···························· 2

(3) Qualitative information concerning the consolidated business forecast ······························· 2

2. Information concerning Summary (Notes) ············································································· 3

(1) Significant changes with respect to subsidiaries of the Company during the three months

ended June 30, 2012 ················································································································ 3

(2) Changes in accounting policies, changes in accounting estimates, and retrospective

restatements ····························································································································· 3

3. Consolidated Financial Statements ························································································· 4

(1) Consolidated Balance Sheet as of June 30, 2012 ·································································· 4

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income

for the three months ended June 30, 2012 ··············································································· 5

(3) Notes regarding going concern assumption ·········································································· 7

(4) Notes regarding significant changes in the amount of equity capital ··································· 7

(5) Business combinations and other matters ············································································· 7

4. Supplementary information ···································································································· 9

(1) Summary of Consolidated Business Results for the three months ended June 30, 2012 ······ 9

(2) Premiums written and claims paid by lines of insurance ···················································· 10

(3) Securities ····························································································································· 11

(4) Derivative financial instruments ························································································· 12

(5) Financial results of major consolidated subsidiaries ··························································· 13

- Tokio Marine & Nichido Fire Insurance Co., Ltd. (non-consolidated) ··························· 13

- Nisshin Fire & Marine Insurance Co., Ltd. (non-consolidated) ······································ 17

- E.design Insurance Co., Ltd. (non-consolidated) ····························································· 21

- Tokio Marine & Nichido Life Insurance Co., Ltd. (non-consolidated) ··························· 23

- Tokio Marine & Nichido Financial Life Insurance Co., Ltd. (non-consolidated) ··········· 29

Glossary of terminology ····································································································· 34

1

1. Qualitative information concerning the consolidated business results for the three

months ended June 30, 2012

(1) Qualitative information concerning the consolidated results of operations

During the three months ended June 30, 2012, there were continued concerns about a potential

worsening of the global economy, despite a gradual, self-sustaining recovery by the U.S.

economy. European economies remained in a downturn owing to a worsening of sovereign

debt problems. China had been driving the global economy but a slowdown in manufacturing

and exports, and other negative factors, contributed to heightened concerns about a deceleration

of China’s economy.

In Japan, the economy gradually improved owing to strong domestic demand, mainly supported

by reconstruction projects following the Great East Japan Earthquake and steady improvements

in auto sales and other areas of consumer spending.

Under these conditions, as a result of our efforts to improve performance centered on our

property and casualty and life insurance businesses, our operating results for the three months

ended June 30, 2012 were as follows:

Compared to the three months ended June 30, 2011, ordinary income decreased by 42.8 billion

yen to 917.0 billion yen, the main components of which were underwriting income of 821.2

billion yen and investment income of 76.2 billion yen. Compared to the three months ended

June 30, 2011, ordinary expenses decreased by 10.1 billion yen to 865.9 billion yen, the main

components of which were underwriting expenses of 614.6 billion yen, investment expenses of

118.3 billion yen, and operating and general administrative expenses of 131.7 billion yen.

As a result, ordinary profit for the three months ended June 30, 2012 decreased by 32.6 billion

yen from the same period in the prior year to 51.1 billion yen.

Net income for the three months ended June 30, 2012, composed of ordinary profit plus

extraordinary gains minus extraordinary losses and total income taxes, decreased by 21.4 billion

yen from the same period in the prior year to 33.6 billion yen.

(2) Qualitative information concerning the consolidated financial condition

As of June 30, 2012, consolidated total assets were 17,210.9 billion yen. This represents an

increase of 872.4 billion yen from March 31, 2012 which was mainly due to the acquisition of

Delphi Financial Group, Inc.

(3) Qualitative information concerning the consolidated business forecast

The consolidated business forecast for the fiscal year ending March 31, 2013 is 165.0 billion

yen in ordinary profit and 105.0 billion yen in net income. The Company has not revised its

forecast from the forecast in Summary of Consolidated Business Results disclosed on May 18,

2012.

2

2. Information concerning Summary (Notes)

(1) Significant changes with respect to subsidiaries of the Company during the three

months ended June 30, 2012

None.

(2) Changes in accounting policies, changes in accounting estimates, and retrospective

restatements

(Changes in accounting policies which are difficult to distinguish from changes in accounting

estimates)

Starting from the first quarter of the fiscal year ending March 31, 2013, the Company and its

major consolidated domestic subsidiaries have revised their depreciation method for tangible

fixed assets acquired on or after April 1, 2012, in accordance with the revision of the

Corporation Tax Act.

The changes had immaterial impact on ordinary profit and income before income taxes for the

three months ended June 30, 2012.

3

3. Consolidated Financial Statements

(1) Consolidated Balance Sheet as of June 30, 2012

(Yen in millions)

(Assets)

405,432 353,473

128,391 170,382

304,931 255,965

58,753 56,299

863,794 976,099

3,163 2,825

12,229,159 12,824,111

424,743 424,412

303,819 305,514

320,145 437,973

1,066,905 1,132,549

174,201 221,589

74,359 66,757

(19,340) (17,046)

16,338,460 17,210,907

(Liabilities)

11,822,090 12,269,642

Outstanding claims 1,444,219 1,598,609

Underwriting reserves 10,377,870 10,671,032

111,140 146,246

2,051,509 2,498,158

175,094 179,332

25 26

24,381 14,717

70,137 64,270

Price fluctuation reserve 70,137 64,270

41,291 75,490

110,964 108,401

74,359 66,757

14,480,995 15,423,044

(Net assets)

Shareholders' equity

Share capital 150,000 150,000

Retained earnings 1,104,810 1,017,230

Treasury shares (109,418) (7,200)

Total shareholders' equity 1,145,391 1,160,029

828,245 705,661

22,780 22,847

(156,812) (120,077)

694,213 608,431

1,598 1,399

16,261 18,001

1,857,465 1,787,862

16,338,460 17,210,907

Accumulated other comprehensive income

Total accumulated other comprehensive income

Unrealized gains on securities, net of taxes

Deferred gains/losses on hedge transactions

Foreign currency translation adjustments

Loans

Cash and bank deposits

Call loans

Monetary receivables bought

Money trusts

Securities

Receivables under resale agreements

Receivables under security borrowing transactions

Provision for employees' bonus

Reserve under the special law

Deferred tax liabilities

Retirement benefit obligations for directors and corporate

auditors

Total liabilities and net assets

Tangible fixed assets

Intangible fixed assets

Negative goodwill

Total liabilities

Other assets

Total assets

Deferred tax assets

Customers' liabilities under acceptances and

guarantees

Allowance for doubtful accounts

As of March 31, 2012 As of June 30, 2012

Total net assets

Share acquisition rights

Non-controlling interests

Corporate bonds

Retirement benefit obligations

Acceptances and guarantees

Insurance liabilities

Other liabilities

4

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income

for the three months ended June 30, 2012

(Consolidated Statement of Income)

(Yen in millions)

959,902 917,063

871,724 821,297

598,921 627,718

33,354 31,060

15,693 14,346

74,410 84,563

- 21,837

148,518 40,843

69,804 76,293

67,785 67,781

272 0

- 71

4,924 9,732

26 420

8,243 12,309

(15,693) (14,346)

18,373 19,472

Amortization of negative goodwill 2,562 2,562

269 59

876,077 865,911

720,879 614,668

400,205 376,280

22,919 24,986

114,172 118,587

51,239 51,594

141 187

42,815 40,542

87,785 -

26,475 118,305

- 337

Losses on trading securities 728 -

2,945 1,436

4,912 17,441

394 116

12,019 94,003

127,159 131,748

2,632 2,612

835 875

27 16

Amortization of deferred assets under Article 113 of

the Insurance Business Act344 550

(1,069) (1,423)

83,824 51,152

518 7,383

503 280

- 5,867

Reversal of price fluctuation reserve - 5,867

15 1,235

1,357 7,750

187 36

231 16

842 -

Provision for price fluctuation reserve 842 -

96 7,697

82,985 50,784

18,792 10,447

8,760 6,277

27,553 16,724

55,432 34,060

283 377

55,148 33,682

Reversal of reserve under the special law

Net income

Income taxes - deferred

Total income taxes

Income before non-controlling interests


Other extraordinary losses

Income before income taxes and non-controlling interests

Income taxes - current

Provision under the special law

Extraordinary gains

Gains on disposal of fixed assets

Other extraordinary gains

Extraordinary losses

Losses on disposal of fixed assets

Impairment losses on fixed assets

Deferred expenses under Article 113 of the Insurance Business

Act

Ordinary profit

Other ordinary expenses

Interest expenses

Losses on bad debts

Investment losses on separate accounts

Operating and general administrative expenses

Losses on money trusts

Losses on sales of securities

Impairment losses on securities

Losses on redemption of securities

Provision for outstanding claims

Investment expenses

Agency commissions and brokerage

Maturity refunds to policyholders

Dividends to policyholders

Life insurance claims

Ordinary expenses

Underwriting expenses

Net claims paid

Loss adjustment expenses

Transfer of investment income on deposit premiums

Other ordinary income

Equity in earnings of affiliates

Gains on redemption of securities

Gains on derivatives

Interest and dividends

Gains on money trusts

Gains on trading securities

Gains on sales of securities

Life insurance premiums

Reversal of outstanding claims

Reversal of underwriting reserves

Investment income

Underwriting income

Net premiums written

Deposit premiums from policyholders

Investment income on deposit premiums


(April 1, 2011 to June 30, 2011)


(April 1, 2012 to June 30, 2012)

Ordinary income

5

(Consolidated Statement of Comprehensive Income)

(Yen in millions)

55,432 34,060

Other comprehensive income

(11,525) (122,524)

1,780 66

17,184 37,372

116 495

Total other comprehensive income 7,556 (84,589)

Total comprehensive income 62,988 (50,528)

Comprehensive income attributable to:

62,216 (52,098)

772 1,570


(April 1, 2011 to June 30, 2011)


(April 1, 2012 to June 30, 2012)





Foreign currency translation adjustments

Share of other comprehensive income of affiliates accounted

for by the equity method

Owners of the parent

6

(3) Notes regarding going concern assumption

Not applicable.

(4) Notes regarding significant changes in the amount of equity capital

Not applicable.

(5) Business combinations and other matters

(Business combination by acquisition)

On May 15, 2012, through Tokio Marine & Nichido Fire Insurance Co., Ltd., a subsidiary of the Company,

the Company acquired 100% of the issued shares of Delphi Financial Group, Inc. ("Delphi"), a U.S. life

and property & casualty insurance group.

1. Outline of the business combination

a. Name of the acquiree

Delphi Financial Group, Inc.

b. Business

Insurance group holding company

c. Business combination objectives

Tokio Marine Group is: (i) seeking further growth in both the earnings and scale of its overseas

businesses; (ii) creating a more diverse business portfolio; and (iii) establishing new business

opportunities through synergies with Philadelphia Consolidated Holding Corp. and other current U.S.

operations.

d. Date of the business combination

May 15, 2012

e. Form of the business combination

Reverse triangular merger under laws concerning business combination in the U.S.

f. Voting rights acquired through the business combination

100%

2. Period for which the acquiree’s operating results are included in the consolidated statements of income of

the Company

For accounting purposes, the acquisition date is deemed to be June 30, 2012. Consequently, the

acquiree’s operating results are not reflected in the consolidated statements of income of the

Company for the three months ended June 30, 2012.

3. Acquisition cost and its detail

Consideration for Delphi shares acquired 213,570 million yen

Direct costs of the acquisition 1,463 million yen

Acquisition cost 215,033 million yen

7

4. Amount, reason for recognition, method and period of amortization of goodwill

a. Amount of goodwill

36,310 million yen

b. Reason for recognition of goodwill

The acquisition cost of the acquiree, which was calculated by taking into account projections of the

acquiree’s future revenue as of the valuation date, exceeded the net amounts of assets acquired and

liabilities assumed.

c. Period and method of amortization of goodwill

5 years using the straight line method

d. Other information

The purchase price allocation has not been completed and the amount of goodwill recognized is

tentative.

8

4. Supplementary information

(1) Summary of Consolidated Business Results for the three months ended June 30, 2012

(Yen in millions, except for %)

Ordinary income and expenses %

871,724 821,297 (50,426) (5.8)

Net premiums written 598,921 627,718 28,796 4.8

33,354 31,060 (2,294) (6.9)

Life insurance premiums 74,410 84,563 10,153 13.6

Reversal of outstanding claims - 21,837 21,837 -

Reversal of underwriting reserves 148,518 40,843 (107,674) (72.5)

720,879 614,668 (106,211) (14.7)

Net claims paid 400,205 376,280 (23,924) (6.0)

Loss adjustment expenses 22,919 24,986 2,066 9.0

Agency commissions and brokerage 114,172 118,587 4,415 3.9

Maturity refunds to policyholders 51,239 51,594 354 0.7

Life insurance claims 42,815 40,542 (2,272) (5.3)

Provision for outstanding claims 87,785 - (87,785) (100.0)

69,804 76,293 6,489 9.3

Interest and dividends 67,785 67,781 (3) (0.0)

Gains on sales of securities 4,924 9,732 4,808 97.6

26,475 118,305 91,829 346.8

Losses on sales of securities 2,945 1,436 (1,509) (51.2)

Impairment losses on securities 4,912 17,441 12,528 255.1

127,159 131,748 4,589 3.6

15,741 16,859 1,118 7.1

Equity in earnings (losses) of affiliates 269 59 (209) (78.0)

(1,069) (1,423) (354) -

83,824 51,152 (32,672) (39.0)

Extraordinary gains and losses

518 7,383 6,864 1,323.1

1,357 7,750 6,393 470.9

(838) (367) 471 -

82,985 50,784 (32,201) (38.8)

18,792 10,447 (8,345) (44.4)

8,760 6,277 (2,483) (28.4)

27,553 16,724 (10,829) (39.3)

55,432 34,060 (21,371) (38.6)

283 377 93 33.0

55,148 33,682 (21,465) (38.9)

Rate of change

Other ordinary income and expenses

Three months ended

June 30, 2011

(April 1, 2011 to

June 30, 2011)

Three months ended

June 30, 2012

(April 1, 2012 to

June 30, 2012)

Increase

(Decrease)


Investment income

Net income

Ordinary profit


Extraordinary gains and losses




Total income taxes

Income before income taxes and non-controlling

interests

Extraordinary gains



Underwriting income

Investment expenses

Operating and general administrative

expenses

Deferred expenses under Article 113 of the

Insurance Business Act

9

Direct premiums written including deposit premiums from policyholders (Yen in millions, except for %)

Amounts Amounts

Fire and allied lines 106,696 16.5 (2.5) 123,573 17.8 15.8

Hull and cargo 27,767 4.3 4.7 25,108 3.6 (9.6)

Personal accident 84,638 13.1 0.6 87,711 12.6 3.6

Voluntary automobile 258,673 39.9 0.6 273,074 39.2 5.6

Compulsory automobile liability 59,001 9.1 3.6 64,691 9.3 9.6

Others 111,208 17.2 1.7 121,613 17.5 9.4

Total 647,985 100.0 0.7 695,772 100.0 7.4

(Deposit premiums from policyholders) 33,354 5.1 (2.3) 31,060 4.5 (6.9)

Net premiums written (Yen in millions, except for %)

Amounts Amounts

Fire and allied lines 108,321 18.1 (1.7) 104,417 16.6 (3.6)

Hull and cargo 22,849 3.8 6.0 21,058 3.4 (7.8)


Voluntary automobile 260,225 43.4 1.1 275,820 43.9 6.0

Compulsory automobile liability 52,682 8.8 (0.6) 60,810 9.7 15.4

Others 99,429 16.6 0.5 105,431 16.8 6.0

Total 598,921 100.0 0.5 627,718 100.0 4.8

Net claims paid (Yen in millions, except for %)

Amounts Amounts

Fire and allied lines 106,854 26.7 183.3 72,899 19.4 (31.8)

Hull and cargo 12,881 3.2 19.3 12,536 3.3 (2.7)

Personal accident 22,939 5.7 1.8 22,353 5.9 (2.6)

Voluntary automobile 162,707 40.7 (1.2) 166,581 44.3 2.4

Compulsory automobile liability 57,460 14.4 (2.3) 59,154 15.7 2.9

Others 37,362 9.3 (5.1) 42,755 11.4 14.4

Total 400,205 100.0 19.9 376,280 100.0 (6.0)

%%

%%%%

%% % %

(2) Premiums written and claims paid by lines of insurance


(April 1, 2011 to June 30, 2011)


(April 1, 2012 to June 30, 2012)

Composition ratio Rate of change Composition ratio Rate of change


(April 1, 2011 to June 30, 2011)


(April 1, 2012 to June 30, 2012)


Note: Amounts are after elimination of inter-segment transactions.


(April 1, 2011 to June 30, 2011)


(April 1, 2012 to June 30, 2012)


%%

10

(3) Securities1. Bonds held to maturity (Yen in millions)

Fair value Difference Fair value Difference

2,262,672 2,356,968 94,296 2,443,389 2,559,427 116,037

19,359 19,812 453 20,355 20,876 521

Total 2,282,032 2,376,781 94,749 2,463,744 2,580,304 116,559

2. Bonds earmarked for underwriting reserves (Yen in millions)

Fair value Difference Fair value Difference

119,392 125,186 5,794 119,262 125,735 6,473

102,389 110,585 8,195 94,001 102,453 8,451

Total 221,781 235,771 13,990 213,263 228,189 14,925

3. Other securities (available for sale) (Yen in millions)


3,789,931 3,920,743 130,811 3,973,161 4,130,773 157,611

827,616 1,856,330 1,028,714 812,057 1,642,604 830,547

1,134,449 1,190,505 56,056 1,681,031 1,738,450 57,419

914,944 920,088 5,143 1,007,007 1,011,396 4,389

Total 6,666,942 7,887,668 1,220,725 7,473,258 8,523,225 1,049,967

(Note)

1. 1.

2. 2.

3. 3.

Type


Domestic debt securities

Carrying amount

shown on

balance sheet

Carrying amount

shown on

balance sheet

Foreign securities

Type


Carrying amount

shown on

balance sheet

As of June 30, 2012


Foreign securities

Carrying amount

shown on

balance sheet

Cost

Fair value

shown on

balance sheet

Difference


TypeCost

Fair value

shown on

balance sheet

Difference

As of June 30, 2012

Domestic equity securities

Foreign securities

Others


Other securities for which it is difficult to ascertain fair value are not

included in the above table.

Other securities for which it is difficult to ascertain fair value are not

included in the above table.

"Others" includes negotiable certificates of deposit (cost: 44,567 million

yen; fair value shown on the consolidated balance sheet: 44,567 million

yen; difference: 0 million yen) which are presented as "Cash and bank

deposits" on the consolidated balance sheet. In addition, "Others"

includes commercial paper, etc. (cost: 858,198 million yen; fair value

shown on the consolidated balance sheet: 862,962million yen; difference:

4,764 million yen) which are presented as "Monetary receivables bought"

on the consolidated balance sheet.

"Others" includes negotiable certificates of deposit (cost: 25,614 million

yen; fair value shown on the consolidated balance sheet: 25,614 million

yen; difference: 0 million yen) which are presented as "Cash and bank

deposits" on the consolidated balance sheet. In addition, "Others" includes

commercial paper, etc. (cost: 968,998 million yen; fair value shown on the

consolidated balance sheet: 973,571 million yen; difference: 4,572 million

yen) which are presented as "Monetary receivables bought" on the

consolidated balance sheet.

Impairment losses amounting to 7,701 million yen (domestic debt

securities: 249 million yen; domestic equity securities: 5,972 million yen;

foreign securities: 1,472 million yen; others: 6 million yen) were

recognized for "Other securities (available for sale)" with fair value. In

principle, an impairment loss is recognized if the fair value of a security

has declined by 30% or more compared to its book value as of March 31,

2012.

Impairment losses amounting to 15,341 million yen (domestic equity

securities: 14,151 million yen; foreign securities: 1,151 million yen; others:

38 million yen) were recognized for "Other securities (available for sale)"

with fair value. In principle, an impairment loss is recognized if the fair

value of a security has declined by 30% or more compared to its book

value as of June 30, 2012.

11

(Yen in millions)

Principal amount Fair valueUnrealized gains

(losses)Principal amount Fair value

Unrealized gains

(losses)

Foreign currency-related instruments

Foreign exchange forwards

Short 225,019 (5,751) (5,751) 268,341 2,353 2,353

Long 72,425 1,125 1,125 73,080 (1,816) (1,816)

Non-deliverable forwards

Short 814 (49) (49) 942 (18) (18)

Currency swaps 494,642 (11,372) (11,372) 501,597 (12,015) (12,015)

Currency options

Short 90,207 96,623

9,253 9,338 (84) 10,036 8,977 1,058

Long 101,932 94,456

7,986 11,922 3,936 7,545 9,490 1,944

Interest rate-related instruments

Interest rate futures

Short 775 0 0 1,292 0 0

Long 159,489 (3) (3) 144,368 35 35

Interest rate options

　Short 68,728 94,737

904 1,459 (554) 926 1,448 (521)

　Long 18,500 18,500

431 611 180 431 600 169

Interest rate swaps 6,142,960 23,223 23,223 5,745,119 19,484 19,484

Equity-related instruments

Equity index futures

Short 10,768 (104) (104) 9,632 (650) (650)

Long 1,463 (27) (27) 1,784 82 82

Equity index options

Long 12,982 21,706

3,159 5,654 2,494 3,246 6,372 3,125

Bond-related instruments

Bond futures

Short 11,681 (113) (113) 3,792 (791) (791)

Long 581 0 0 327 1 1

Bond future options

Long - 10,904

- - - 6 10 4

Bond over-the-counter options

Short 7,279 102,557

18 3 14 1,026 1,006 20

Long 7,351 76,838

47 26 (21) 1,259 1,233 (25)

Credit-related instruments

Credit derivatives

Sell protection 58,467 (3,143) (3,143) 43,387 (2,804) (2,804)

Commodity-related instruments

Commodity swaps 29,091 (1,042) (1,042) 27,029 (1,066) (1,066)

Others

Index basket options

Long 264,893 263,526

14,995 24,883 9,887 17,270 32,411 15,140

Natural disaster derivatives

Short 13,686 28,570

1,139 755 383 2,399 1,451 947

Long 31,078 35,620

4,855 3,458 (1,397) 4,056 1,934 (2,122)

Weather derivatives

Short 88 90

2 2 (0) 3 2 0

Others

Short 123 123

6 6 - 6 6 -

Total 60,865 17,581 67,740 22,534

(Note 1)

(Note 2)

(4) Derivative financial instruments


Those instruments to which hedge accounting is applied are not included in the table above.

Option premiums are shown beneath the principal amounts for currency options, interest rate options, equity index options, bond future options, bond over-the-counter

options, index basket options, natural disaster derivatives, weather derivatives and others.

12

(5)　　　　Financial results of major consolidated subsidiaries

Reference：：：：Tokio Marine & Nichido Fire Insurance Co., Ltd. (non-consolidated)

Balance sheet 　　


％％ 80,647 0.96 38,108 0.46 (42,539)

114,700 1.37 141,400 1.71 26,700304,931 3.64 255,965 3.09 (48,966)565,048 6.75 513,043 6.20 (52,004)

3,163 0.04 2,825 0.03 (337)5,992,381 71.61 6,003,633 72.51 11,251

333,466 3.99 326,427 3.94 (7,038)235,498 2.81 232,594 2.81 (2,904)

535 0.01 535 0.01 (0)617,933 7.38 607,436 7.34 (10,496)111,341 1.33 160,833 1.94 49,491

20,636 0.25 6,375 0.08 (14,261)

(12,276) (0.15) (9,458) (0.11) 2,8178,368,009 100.00 8,279,720 100.00 (88,288)

5,283,818 63.14 5,257,050 63.49 (26,768)885,199 862,025 (23,174)

4,398,618 4,395,024 (3,594)39,050 0.47 51,950 0.63 12,900

1,181,419 14.12 1,252,469 15.13 71,05038,365 2,462 (35,903)2,395 2,263 (131)3,403 3,401 (2)

1,137,254 1,244,342 107,088168,293 2.01 168,196 2.03 (97)14,533 0.17 7,123 0.09 (7,409)65,165 0.78 59,751 0.72 (5,413)65,165 59,751 (5,413)20,636 0.25 6,375 0.08 (14,261)

6,772,916 80.94 6,802,915 82.16 29,999

101,994 1.22 101,994 1.23 - 123,521 1.48 123,521 1.49 - 123,521 123,521 - 508,219 6.07 522,599 6.31 14,38081,099 81,099 -

427,120 441,500 14,380

19,377 19,377 -

235,426 235,426 - 172,316 186,696 14,380733,735 8.77 748,115 9.04 14,380837,958 10.01 706,686 8.54 (131,272)23,398 0.28 22,002 0.27 (1,395)

861,357 10.29 728,689 8.80 (132,668)1,595,092 19.06 1,476,804 17.84 (118,288)8,368,009 100.00 8,279,720 100.00 (88,288)

Accrued income taxes

(Net assets)

Other liabilities


Acceptances and guarantees


Asset retirement obligations


Lease obligations

(Liabilities)


Total assets

Corporate bonds

Outstanding claims

Underwriting reserves

Customers' liabilities under acceptances and

guarantees


Deferred tax assets


Increase

(Decrease)

AmountComposition

ratio


Amount

As of June 30, 2012

Composition

ratio

Receivables under resale agreements


Money trusts


(Assets)

Call loans

Securities

Other liabilities

Loans


Retained earnings

Share capital

Capital surplus

Total liabilities

Price fluctuation reserve

Other assets

Special reserve

Retained earnings carried forward

Advanced depreciation reserve for fixed

assets

Additional paid-in capital


Total valuation and translation adjustments

Total net assets



Total shareholders' equity

Surplus reserve

Other retained earnings

13


Statement of income(Yen in millions, except for %)

716,374 578,579 (137,795)651,949 532,400 (119,549)

Net premiums written 442,065 467,447 25,382Deposit premiums from policyholders 31,900 29,996 (1,904)Investment income on deposit premiums 15,066 13,796 (1,270)Reversal of outstanding claims - 17,537 17,537Reversal of underwriting reserves 162,898 3,594 (159,304)

61,435 42,437 (18,997)Interest and dividends 61,768 42,409 (19,358)Gains on money trusts 272 0 (272)Gains on sales of securities 2,682 5,521 2,838Transfer of investment income on deposit premiums (15,066) (13,796) 1,270

2,990 3,742 751622,555 538,937 (83,618)545,229 449,162 (96,066)

Net claims paid 333,642 296,435 (37,206)Loss adjustment expenses 19,502 21,206 1,703Agency commissions and brokerage 77,798 80,769 2,971Maturity refunds to policyholders 48,045 48,858 812Provision for outstanding claims 65,001 - (65,001)

5,057 18,004 12,946Losses on money trusts - 337 337Losses on sales of securities 2,106 848 (1,257)Impairment losses on securities 2,087 15,102 13,015

71,692 71,074 (618)575 696 120

Interest expenses 492 586 9493,818 39,641 (54,177)

517 6,928 6,411Gains on disposal of fixed assets 502 279 (222)Reversal of reserve under the special law - 5,413 5,413

Reversal of price fluctuation reserve - 5,413 5,413Gains on liquidation of subsidiaries and affiliates - 1,235 1,235Gains on sales of investment in subsidiaries and affiliates 15 - (15)

1,204 5,945 4,741Losses on disposal of fixed assets 90 21 (69)Impairment losses on fixed assets 170 16 (153)Provision under the special law 943 - (943)

Provision for price fluctuation reserve 943 - (943)

- 5,907 5,907

93,132 40,625 (52,507)14,535 3,357 (11,178)9,095 9,126 31

23,631 12,483 (11,147)69,501 28,141 (41,359)

(Reference)

79.9 68.0 (11.9)32.2 31.1 (1.2)

41,444 17,713 (23,730)

For the three months ended

June 30, 2012

April 1, 2011 to

June 30, 2011( )

April 1, 2012 to

June 30, 2012（

Loss ratio [%]

Expense ratio [%]

Underwriting profit


Total income taxes

Net income

Income before income taxes


Impairment losses on investment in subsidiaries and

affiliates



Ordinary profit

Extraordinary gains

Ordinary expenses


Investment expenses


Ordinary income

Underwriting income

Investment income


Amount Amount

)Increase

(Decrease)


June 30, 2011

14


Underwriting

Direct premiums written (excluding deposit premiums from policyholders)(Yen in millions, except for %)

％％％％

Fire and allied lines 65,531 13.6 4.5 70,451 13.9 7.5

Hull and cargo 17,349 3.6 2.1 16,232 3.2 (6.4)


Voluntary automobile 218,316 45.5 0.2 229,268 45.1 5.0Compulsory automobile liability 53,904 11.2 3.5 59,457 11.7 10.3

Other 75,364 15.7 3.0 79,617 15.7 5.6

Total 480,185 100.0 1.8 507,842 100.0 5.8Deposit premiums from policyholders 31,900 - (0.5) 29,996 - (6.0)

Net premiums written(Yen in millions, except for %)

％％％％


Hull and cargo 14,471 3.3 1.1 13,937 3.0 (3.7)


Voluntary automobile 217,569 49.2 0.4 228,338 48.8 4.9Compulsory automobile liability 48,854 11.1 (0.4) 56,383 12.1 15.4

Other 60,619 13.7 (0.8) 61,317 13.1 1.2

Total 442,065 100.0 0.6 467,447 100.0 5.7

Net claims paid(Yen in millions, except for %)

％％％％

Fire and allied lines 85,731 279.2 168.4 42,836 (50.0) 79.8

Hull and cargo 9,247 15.2 67.0 8,306 (10.2) 62.9

Personal accident 20,504 2.2 43.9 19,601 (4.4) 40.3

Voluntary automobile 139,061 0.3 69.2 141,107 1.5 67.1Compulsory automobile liability 53,786 (2.5) 117.9 55,314 2.8 105.8

Other 25,311 (15.2) 44.5 29,269 15.6 50.5

Total 333,642 21.6 79.9 296,435 (11.2) 68.0

For the three months ended June 30, 2011 For the three months ended June 30, 2012

Amount Loss ratioRate of

changeLoss ratio Amount

Rate of

change

)


AmountComposition

ratio

Rate of

changeAmount

Composition

ratio

Rate of

change

)


AmountComposition

ratio

Rate of

change

(

AmountComposition

ratio

Rate of

change

)（April 1, 2012 to

June 30, 2012

April 1, 2011 to

June 30, 2011)

( )

April 1, 2011 to

June 30, 2011

April 1, 2012 to

June 30, 2012

April 1, 2012 to

June 30, 2012

()(

(April 1, 2011 to

June 30, 2011

15


Solvency margin ratio (non-consolidated)(Yen in millions, except for %)

3,066,662 2,925,646719,974 748,115

Price fluctuation reserve 65,165 59,751Contingency reserve - -Catastrophe loss reserve 851,808 846,428General allowance for doubtful accounts 2,161 1,632

1,087,380 917,170

Net unrealized gains/losses on land 159,075 158,948Excess of policyholders' contract deposits - -Subordinated debt, etc. - -

- -

Deductions 9,983 10,028Other 191,081 203,628

(Ｂ) Total amount of risks

　（Ｒ１＋Ｒ２）２＋（Ｒ３＋Ｒ４）

２＋Ｒ５＋Ｒ６

General insurance risk （Ｒ１） 152,675 153,214Third sector insurance risk （Ｒ２） - -Assumed interest risk （Ｒ３） 28,778 28,527Asset management risk （Ｒ４） 630,738 625,375Business administration risk （Ｒ５） 21,749 20,984Catastrophe risk （Ｒ６） 275,270 242,101

(Ｃ) Solvency margin ratio

[(Ａ)/{(Ｂ)×1/2}]×100

(Note) Solvency margin ratio as of June 30, 2012 was calculated by the method which the company regarded as reasonable in

conformity with the Insurance Business Act and other related regulations. Catastrophe risk was calculated partially based

on simplified methods including but not limited to use of data as of March 31, 2012.

Total net assets

Amounts within "Excess of policyholders' contract deposits"

and "Subordinated debt, etc." not calculated into the margin

Net unrealized gains/losses on securities

(prior to tax effect deductions)

629.7% 626.0%

As of June 30, 2012As of March 31, 2012

(Ａ) Total amount of solvency margin

973,977 934,698

16

Reference：：：：Nisshin Fire & Marine Insurance Co., Ltd. (non-consolidated)

Balance sheet


％％20,188 4.94 20,974 5.18 785 298,267 72.93 294,151 72.61 (4,115)5,822 1.42 5,413 1.34 (408)33,167 8.11 33,049 8.16 (117)

91 0.02 91 0.02 - 28,572 6.99 28,481 7.03 (90)23,912 5.85 23,940 5.91 27 (1,063) (0.26) (1,000) (0.25) 63 408,959 100.00 405,103 100.00 (3,855)

326,930 79.94 326,548 80.61 (382)51,437 52,101 664 275,493 274,446 (1,046)14,916 3.65 13,987 3.45 (929)

388 580 192 34 31 (2)39 39 (0)

14,454 13,336 (1,118)1,648 0.40 1,679 0.41 30 548 0.13 - - (548)953 0.23 399 0.10 (553)953 399 (553)

344,998 84.36 342,614 84.57 (2,384)

20,389 4.99 20,389 5.03 - 15,518 3.79 15,518 3.83 - 12,620 12,620 - 2,898 2,898 - 18,814 4.60 17,798 4.39 (1,015)7,732 7,732 - 11,081 10,066 (1,015)10,840 8,840 (2,000)

1,818 1,818 -

(1,576) (592) 984 54,722 13.38 53,706 13.26 (1,015)9,238 2.26 8,782 2.17 (456)9,238 2.26 8,782 2.17 (456)63,960 15.64 62,488 15.43 (1,471)408,959 100.00 405,103 100.00 (3,855)

Increase

(Decrease)Composition

ratioAmount


AmountComposition

ratio

Securities

(Assets)


Loans



Other assets

Deferred tax assets


Total assets

(Liabilities)


Outstanding claims


Other liabilities


Other liabilities


Lease obligations


Total liabilities

Total net assets








Retained earnings

Surplus reserve


Special reserve

(Net assets)

Advanced depreciation reserve

for fixed assets

Share capital

Capital surplus


Other capital surplus


17


Statement of income(Yen in millions, except for %)

Ordinary income 48,183 39,375 (8,807)Underwriting income 47,199 38,316 (8,883)

34,916 35,644 727

1,453 1,063 (389)

626 549 (77)

10,197 1,046 (9,150)

806 992 185

1,169 1,005 (164)

123 184 61

16 40 23

122 310 187

(626) (549) 77Other ordinary income 177 67 (110)

Ordinary expenses 48,934 40,976 (7,957)Underwriting expenses 42,106 33,675 (8,430)

21,642 21,732 90

2,225 2,305 79

6,461 6,171 (289)

3,194 2,736 (458)

8,519 664 (7,855)Investment expenses 500 1,148 647

2 9 6

460 1,079 619

7 - (7)Operating and general administrative expenses 6,256 6,108 (147)Other ordinary expenses 70 43 (26)

Ordinary profit (750) (1,600) (849)Extraordinary gains 207 553 346

0 0 0

205 553 348Reversal of price fluctuation reserve 205 553 348

2 - (2)Extraordinary losses 129 5 (124)

8 5 (2)121 - (121)

Loss before income taxes (672) (1,052) (379)Income taxes - current 30 26 (3)Income taxes - deferred (335) (63) 271Total income taxes (305) (36) 268Net loss (367) (1,015) (648)

(Reference)

68.4 67.4 (0.9)

36.0 34.1 (2.0)

(733) (989) (256)

April 1, 2012 to

June 30, 2012)


Net claims paid

Investment income




Reversal of underwriting reserves





Gains on redemption of securities


Amount

Increase

(Decrease)

Amount

) (

Loss ratio[%]

Expense ratio[%]

Underwriting profit

Maturity refunds to policyholders



Impairment losses on securities


June 30, 2011


June 30, 2012



(April 1, 2011 to

June 30, 2011

Losses on redemption of securities

Gains on disposal of fixed assets

Reversal of reserve under the special law

Other extraordinary gains

18


Direct premiums written (excluding deposit premiums from policyholders)(Yen in millions, except for %)

％％％％


Hull and cargo - - - - - -


Voluntary automobile 20,167 53.9 2.3 20,535 54.0 1.8 Compulsory automobile liability 5,096 13.6 4.9 5,234 13.8 2.7

Other 2,720 7.3 (2.6) 2,742 7.2 0.8

Total 37,391 100.0 2.1 38,046 100.0 1.8 Deposit premiums from policyholders 1,453 - (30.1) 1,063 - (26.8)

Net premiums written(Yen in millions, except for %)

％％％％

Fire and allied lines 5,647 16.2 1.6 5,292 14.8 (6.3)

Hull and cargo 24 0.1 87.5 19 0.1 (21.2)


Voluntary automobile 20,019 57.3 2.2 20,421 57.3 2.0 Compulsory automobile liability 3,820 10.9 (2.6) 4,407 12.4 15.3

Other 2,597 7.4 (1.5) 2,626 7.4 1.1

Total 34,916 100.0 1.3 35,644 100.0 2.1

Net claims paid(Yen in millions, except for %)

％％％％

Fire and allied lines 4,626 55.5 84.4 4,048 (12.5) 82.1

Hull and cargo 45 (2.8) 197.9 22 (51.3) 132.4

Personal accident 1,385 7.5 54.2 1,377 (0.6) 54.7

Voluntary automobile 10,709 (7.6) 61.1 11,558 7.9 63.1 Compulsory automobile liability 3,673 (0.1) 104.3 3,832 4.3 94.2

Other 1,203 (4.7) 50.8 894 (25.7) 40.5

Total 21,642 3.8 68.4 21,732 0.4 67.4

)

Underwriting

(April 1, 2011 to

June 30, 2011)

Amount

For the three months ended June 30, 2012

Composition

ratio

Rate of

change

( )

Rate of

changeAmount

Composition

ratio

Rate of

change

April 1, 2011 to

June 30, 2011)


(April 1, 2012 to

June 30, 2012)

(April 1, 2012 to

June 30, 2012

AmountComposition

ratio

AmountComposition

ratio


Rate of

change

(April 1, 2012 to

June 30, 2012


(April 1, 2011 to

June 30, 2011)

Loss ratioAmountRate of

changeLoss ratio Amount

Rate of

change


19



(Ａ) Total amount of solvency margin 122,231 118,781 54,722 53,706

Price fluctuation reserve 953 399 Contingency reserve - - Catastrophe loss reserve 52,900 51,957 General allowance for doubtful accounts 121 107

11,148 10,769

Net unrealized gains/losses on land (2,639) (2,737)Excess of policyholders' contract deposits - - Subordinated debt, etc. - -

- -

Deductions - - Other 5,024 4,577

(Ｂ) Total amount of risks

　（Ｒ１＋Ｒ２）２＋（Ｒ３＋Ｒ４）

２＋Ｒ５＋Ｒ６

General insurance risk （Ｒ１） 11,751 11,752 Third sector insurance risk （Ｒ２） - - Assumed interest risk （Ｒ３） 1,415 1,397 Asset management risk （Ｒ４） 11,260 10,774 Business administration risk （Ｒ５） 1,456 1,381 Catastrophe risk （Ｒ６） 24,113 22,133

(Ｃ) Solvency margin ratio

[(Ａ)/{(Ｂ)×1/2}]×100

(Note) Solvency margin ratio as of June 30, 2012 was calculated by the method which the company regarded as reasonable in

conformity with the Insurance Business Act and other related regulations. Catastrophe risk was calculated partially based on

simplified methods including but not limited to use of data as of March 31, 2012.


Total net assets

42,854 40,435

570.4% 587.5%

Amounts within "Excess of policyholders' contract deposits"

and "Subordinated debt, etc." not calculated into the margin

Net unrealized gains/losses on securities

(prior to tax effect deductions)

20

Reference：：：：E.design Insurance Co., Ltd. (non-consolidated)

Balance sheet 　　


％％ 9,989 38.48 9,516 36.31 (472)

47 0.18 48 0.18 10 0.00 0 0.00 -

15,926 61.34 16,645 63.51 719

14,746 15,619 873

1,179 1,025 (154)25,963 100.00 26,211 100.00 247

4,603 17.73 5,750 21.94 1,1471,058 1,204 1453,544 4,545 1,0011,771 6.82 1,734 6.62 (36)

14 6 (7)16 17 011 11 0

1,729 1,699 (29)20 0.08 25 0.10 575 0.29 31 0.12 (43)3 0.02 3 0.01 (0)

6,474 24.94 7,546 28.79 1,071

14,153 54.51 14,153 54.00 - 14,153 54.51 14,153 54.00 - 14,153 14,153 - (8,818) (33.97) (9,642) (36.79) (823)(8,818) (9,642) (823)(8,818) (9,642) (823)19,488 75.06 18,664 71.21 (823)19,488 75.06 18,664 71.21 (823)25,963 100.00 26,211 100.00 247

(Net assets)

Other liabilities



Lease obligations




(Liabilities)


Total assets

Outstanding claims


Other assets

Deferred assets under Article 113 of

the Insurance Business Act



Amount

As of June 30, 2012

Composition

ratio

Increase

(Decrease)


(Assets)

AmountComposition

ratio

Other liabilities


Share capital

Capital surplus

Total liabilities

Other assets


Retained earnings



Total net assets



21

Reference：：：：E.design Insurance Co., Ltd. (non-consolidated)

Statement of income


1,032 2,339 1,3071,031 2,338 1,3071,031 2,337 1,306

0 0 00 1 00 1 0

(0) (0) (0)0 0 (0)

1,633 3,162 1,5281,096 2,267 1,170

444 942 497165 178 13

- 0 0181 145 (35)306 1,001 695

1,260 1,767 507345 550 205

0 0 (0)

344 550 205

(1,069) (1,423) (354)

(601) (822) (221)0 - (0)0 - (0)

(601) (822) (221)1 1 0- (0) (0)1 1 (0)

(602) (823) (221)(Reference)

59.1 47.9 (11.2)122.3 75.6 (46.6)

(1,326) (1,697) (370)

Interest expenses

Amortization of deferred assets under Article 113 of

the Insurance Business Act


June 30, 2011


June 30, 2012

April 1, 2011 to

June 30, 2011)( )

April 1, 2012 to

June 30, 2012(

Amount

Increase

(Decrease)




Ordinary expenses

Net claims paid



Provision for underwriting reserves




Deferred expenses under Article 113 of the Insurance

Business Act


Ordinary loss

Loss before income tax



Total income taxes

Loss ratio [%]

Expense ratio [%]

Underwriting profit

Net loss




Amount

Ordinary income

Underwriting income


Investment income

22

Reference：：：：Tokio Marine & Nichido Life Insurance Co., Ltd. (non-consolidated)

Balance sheet


％％

23,813 0.61 21,032 0.50 (2,781)4,391 0.11 8,882 0.21 4,491

Receivables under security borrowing transactions 58,753 1.51 56,299 1.33 (2,453)176,979 4.56 142,981 3.38 (33,997)

3,483,975 89.72 3,856,345 91.24 372,3693,196,192 3,549,753 353,560

12,662 11,860 (801)159,752 188,995 29,242

342 245 (97)115,025 105,490 (9,535)61,197 1.58 61,348 1.45 15061,197 61,348 150

943 0.02 937 0.02 (6)27 0.00 27 0.00 -525 0.01 411 0.01 (114)

2,087 0.05 1,538 0.04 (548)39,751 1.02 49,215 1.16 9,46431,569 0.81 28,459 0.67 (3,109)(853) (0.02) (883) (0.02) (29)

3,883,162 100.00 4,226,596 100.00 343,434

3,087,146 79.50 3,137,791 74.24 50,64417,255 16,408 (846)

2,991,571 3,040,757 49,18678,319 80,624 2,3044,289 0.11 3,452 0.08 (837)3,145 0.08 1,615 0.04 (1,529)

658,299 16.95 943,338 22.32 285,038638,149 927,403 289,2543,858 1,597 (2,260)322 299 (23)

15,969 14,038 (1,931)2,668 0.07 2,846 0.07 1773,969 0.10 4,066 0.10 963,969 4,066 96

3,759,519 96.82 4,093,109 96.84 333,589

55,000 1.42 55,000 1.30 -35,000 0.90 35,000 0.83 -35,000 35,000 -6,773 0.17 9,675 0.23 2,9026,773 9,675 2,9026,773 9,675 2,90296,773 2.49 99,675 2.36 2,90227,723 0.71 33,219 0.79 5,495(854) (0.02) 591 0.01 1,445

26,869 0.69 33,810 0.80 6,941123,642 3.18 133,486 3.16 9,844

3,883,162 100.00 4,226,596 100.00 343,434

Composition

ratioAmount

Composition

ratio

As of June 30, 2012

Call loans


Amount

(Assets)



Securities

Domestic government bonds

Domestic municipal bonds

Domestic corporate bonds

Domestic stocks

Foreign securities

Loans

Policy loans



Other assets

Agency accounts receivable

Reinsurance accounts receivable

Other liabilities


Other liabilities

Deferred tax assets

Reserve for dividends to policyholders


Total assets

(Liabilities)


Agency accounts payable

Reinsurance accounts payable


Share capital

Capital surplus


Retained earnings




Total net assets


(Net assets)


Increase

(Decrease)

Payables under security lending transactions

Total liabilities





Lease obligations


Outstanding claims

23


Statement of income

(Yen in millions)

132,144 144,672 12,528113,433 123,088 9,655

Insurance premiums 111,226 120,841 9,61417,128 20,124 2,996

Interest and dividends 15,826 17,213 1,387Gains on sales of securities 1,298 2,906 1,608

1,583 1,459 (123)Reversal of outstanding claims 939 846 (92)

125,675 136,678 11,002

60,839 59,011 (1,827)Insurance claims 10,789 14,950 4,160Annuity payments 1,150 1,315 164Benefits 18,972 12,515 (6,457)Surrender benefits 28,253 28,129 (123)Other refunds 258 282 24

38,016 49,186 11,170

38,016 49,186 11,169

0 0 0

5,503 6,266 762Interest expenses 202 232 30Losses on sales of securities 396 201 (194)Losses on derivatives 718 2,047 1,329Foreign exchange losses 4,180 3,750 (429)

20,028 20,826 798

1,288 1,387 99

6,468 7,994 1,525

136 100 (35)

1,741 3,340 1,598

4,590 4,553 (36)

972 1,616 644

746 34 (712)

1,719 1,651 (68)2,871 2,902 31

Insurance premiums and other

Investment income

Ordinary income

Amount

Increase

(Decrease)

Amount

Net income

Provision for underwriting reserves and other

Provision for underwriting reserves

Income before income taxes

Provision for reserve for dividends to policyholders


Investment expenses

Operating expenses

Total income taxes



Insurance claims and other

Ordinary expenses


Ordinary profit


Interest on reserve for dividends to policyholders

）June 30, 2011


June 30, 2012

（April 1, 2012 to

）June 30, 2012


June 30, 2011

（April 1, 2011 to

24


Breakdown of ordinary profit (Core operating profit)

(Yen in millions)

April 1, 2011 to April 1, 2012 to

June 30, 2011 June 30, 2012

Ａ 6,211 7,260 1,049

5,742 7,034 1,292

1,298 2,906 1,608Other capital gains 4,444 4,128 (316)

5,371 5,975 603

396 201 (194)

795 2,023 1,227

4,180 3,750 (429)Ｂ 371 1,059 688

Ａ＋Ｂ 6,582 8,320 1,737

0 - (0)Decrease in specific allowance for doubtful accounts 0 - (0)

114 325 211

114 321 207Increase in specific allowance for doubtful accounts - 3 3

Ｃ (113) (325) (212)Ａ＋Ｂ＋Ｃ 6,468 7,994 1,525

Provision for contingency reserves

Capital losses


Losses on derivatives

Non-recurring losses

Net capital gains/losses

Core operating profit including

net capital gains/losses

Non-recurring income

Foreign exchange losses

Capital gains


Core operating profit

Increase

(Decrease)

(Note)

Net non-recurring income/losses

Ordinary profit

2. Other capital gains are decrease in underwriting reserves for foreign-currency insurance contracts due to exchange rate fluctuations.

1. The amounts of interest received/paid on interest rate swaps in gains/losses on derivatives included in core operating profit were as follows:

・Gains of 77 million yen for the three months ended June 30, 2011

・Losses of 24 million yen for the three months ended June 30, 2012


June 30, 2012


June 30, 2011

（）（）

25


Number of policies and policy amount

・Policies in force (Number in thousands, yen in 100 millions, %)

・New policies (Number in thousands, yen in 100 millions, %)

Annualized premiums

・Policies in force (Yen in 100 millions, %)

・New policies (Yen in 100 millions, %)

(

9

4,194

YTY comparison

April 1, 2011 to

June 30, 2011)

105.7

871

Number Amount

239 146.5

102

176.1210.7

YTY comparison

110.3

YTY comparison

Individual insurance 3,3413,288

YTY comparison

Number Amount

108.6

265

-

106.1186,602

29,696

44

Individual annuities 270

-

Group insurance

102.2

-

-

107.8

-

109.5

99.7

82.1

11,178

-

Group annuities --

YTY comparison YTY comparison


Individual insurance

141 137.1

26 109.0 31 119.1

Individual annuities 4 142.5


(

Group insurance - -

Medical coverage and

accelerated death

benefits

Total

Individual annuities


3,485 106.8

103.0

102.3

76

Group annuities

109.7

715 114.0


100.5

4,253

897

731

Medical and cancer 24 104.6 28

April 1, 2012 to

June 30, 2012


Medical and cancer

101.4

708

Total


accelerated death

benefits

102 91.7



113.1

121

12 148.6 19 161.7

90 133.887.1

38 50.8

- -

90.7 - -

-

Number Amount



101.2

102.2

94.7

93.1

188,777

11,425

28,113

41

101.6

106.8 6,082

YTY comparison

421


- - - - -

83.0

Number Amount

96 88.5 5,516

713

YTY comparison

101.6

100.7

)


(April 1, 2011 to

June 30, 2011) (

April 1, 2012 to

June 30, 2012)

3,540

26


Fair value information on securities (Securities measured at fair value other than trading securities) (Yen in millions)

Gains Losses Gains Losses

2,142,339 2,226,235 83,896 95,216 (11,320) 2,323,088 2,426,561 103,472 113,360 (9,887)

221,781 235,771 13,990 14,036 (46) 213,263 228,189 14,925 14,937 (12)

1,256,583 1,296,587 40,004 44,476 (4,471) 1,414,793 1,462,728 47,935 52,215 (4,280)

Domestic bonds 1,067,811 1,106,875 39,063 43,528 (4,464) 1,261,260 1,308,258 46,998 51,278 (4,280)

Domestic stocks 60 97 36 36 - - - - - -

Foreign bonds 11,730 12,636 905 912 (6) 10,551 11,488 937 937 (0)

Other (domestic) 176,979 176,979 - - - 142,981 142,981 - - -

3,620,704 3,758,595 137,890 153,729 (15,838) 3,951,146 4,117,479 166,333 180,514 (14,180)

3,329,544 3,458,297 128,753 144,554 (15,801) 3,703,611 3,860,555 156,944 171,118 (14,174)

60 97 36 36 - - - - - -

114,120 123,221 9,101 9,138 (37) 104,553 113,942 9,389 9,395 (6)

176,979 176,979 - - - 142,981 142,981 - - -

(Note) Other (domestic) is comprised of "Monetary receivables bought".

Fair value information on derivative transactions

・Interest rate-related instruments (Yen in millions)

Over 1 year Over 1 year

Rec. fix/Pay float 69,100 69,100 (1,629) (1,629) 69,100 69,100 826 826

56,000 56,000 (2,757) (2,757) 56,000 56,000 (5,144) (5,144)

(4,386) (4,318)

・Foreign currency-related instruments (Yen in millions)


Short (USD) 1,115 - 8 8 309 - 0 0

161 - (1) (1) 117 - (0) (0)

6 0

(Note) The fair value of foreign exchange forwards is based on the market price of futures.

・Bond-related instruments (Yen in millions)


Short

　Call - - 34,268 -

- - - - 44 - 96 (52)

　Put - - 52,704 -

- - - - 281 - 180 100

Long

　Call - - 60,943 -

- - - - 256 - 201 (54)

- (6)(Note) Option premiums at the inception are shown beneath the principal amounts.

Unrealized

gains/losses

Principal amount

Unrealized gains/losses


As of June 30, 2012


Principal amountFair value

As of June 30, 2012

Fair valueCarrying

amount

Other securities

(available for sale)

Carrying

amountFair value

Unrealized gains/losses

Bonds held to maturity

Unrealized

gains/losses


Bonds earmarked for

underwriting reserves

Domestic stocks

Domestic bonds

Foreign bonds

Other (domestic)

Total


Total

Over-the-

counter

transactions

Interest rate swaps

Pay fix/Rec. float

Total

Unrealized

gains/losses

Over-the-

counter

transactions

Foreign exchange forwards

Long (USD)

Fair valueUnrealized

gains/losses


Unrealized

gains/losses

Principal amount


Total

Fair valueUnrealized

gains/losses

Over-the-

counter

transactions

Bond over-the-counter options

Principal amount

Fair value

27



Total amount of solvency margin (Ａ) 393,938 405,08396,773 94,675

Price fluctuation reserve 3,969 4,066Contingency reserve 25,786 26,108General allowance for doubtful accounts 442 471Net unrealized gains/losses on securities × 90%

（× 100% if losses）

Net unrealized gains/losses on land × 85%（× 100% if losses） - -Excess of continued Zillmerized reserve 153,491 158,506Subordinated debt, etc. - -Amounts within "Excess of continued Zillmerized reserve" and

"Subordinated debt, etc." not calculated into the margin

Deductions - -Other 77,470 78,113

Total amount of risks

　（Ｒ１＋Ｒ８）２＋（Ｒ２＋Ｒ３＋Ｒ７）

２＋Ｒ４

Insurance risk （Ｒ１） 12,830 12,818Third sector insurance risk （Ｒ８） 3,162 3,230Assumed interest risk （Ｒ２） 6,061 5,874Minimum guarantee risk （Ｒ７） - -Asset management risk （Ｒ３） 25,918 31,060Business administration risk （Ｒ４） 959 1,059

Solvency margin ratio (Ｃ)

[(Ａ)/{(Ｂ)×1/2}]×100

(Reference) Difference between real assets and liabilities (Real net assets)(Yen in millions)

An amount calculated based on the assets on balance sheet （１） 3,981,048 4,344,994

Difference between real assets and liabilities A (1)－(2)＝(3) 491,528 531,767

Difference between real assets and liabilities B (3)－(4)＝(5) 393,642 413,369

（４） 97,886 118,398Unrealized gains/losses on securities held to maturity and

earmarked for underwriting reserves

2,145.8％ 1,960.1％

36,715

（２） 3,489,519 3,813,226


An amount calculated based on the liabilities on balance

sheet

41,331


Total net assets

36,004 43,141

- -

(Ｂ)

28

Reference：：：：Tokio Marine & Nichido Financial Life Insurance Co., Ltd. (non-consolidated)

Balance sheet


％％ 74,772 3.34 35,144 1.66 (39,627)9,300 0.42 20,100 0.95 10,800

2,136,796 95.42 2,039,576 96.61 (97,220)54,808 78,902 24,09412,739 11,445 (1,294)

2,069,249 1,949,229 (120,020)2,833 0.13 2,846 0.13 132,833 2,846 13

0 0.00 0 0.00 (0)0 0.00 0 0.00 - 1 0.00 0 0.00 (1)

428 0.02 363 0.02 (65)15,247 0.68 13,085 0.62 (2,161)

(0) (0.00) (0) (0.00) 02,239,379 100.00 2,111,117 100.00 (128,262)

2,184,750 97.56 2,060,460 97.60 (124,290)3,574 2,579 (994)

2,181,176 2,057,880 (123,295)161 0.01 67 0.00 (93)

3,684 0.16 3,552 0.17 (131)3,434 0.15 3,691 0.17 257

8 1 (6)3,426 3,690 263

152 0.01 50 0.00 (101)49 0.00 52 0.00 349 52 3

162 0.01 149 0.01 (12)2,192,394 97.90 2,068,024 97.96 (124,369)

68,000 3.04 68,000 3.22 - 53,000 2.37 53,000 2.51 - 53,000 53,000 -

(74,379) (3.32) (78,244) (3.71) (3,864)(74,379) (78,244) (3,864)(74,379) (78,244) (3,864)46,620 2.08 42,755 2.03 (3,864)

365 0.02 336 0.02 (28)365 0.02 336 0.02 (28)

46,985 2.10 43,092 2.04 (3,892)2,239,379 100.00 2,111,117 100.00 (128,262)



Agency accounts payable

Reinsurance accounts payable

Share capital

Capital surplus


Retained earnings



Total net assets



(Net assets)



Total liabilities

Other liabilities





Outstanding claims


(Liabilities)

Agency accounts receivable

Reinsurance accounts receivable

Other assets


Total assets



Foreign securities

Other (domestic)

Loans

Policy loans

Domestic government bonds


Other liabilities

Call loans

Securities

Increase

(Decrease)

(Assets)


AmountComposition

ratioAmount

Composition

ratio

As of June 30, 2012

29


Statement of income

(Yen in millions)

44,422 128,841 84,4185,231 3,200 (2,031)4,646 2,218 (2,427)

585 982 396360 920 560

Interest and dividends 73 96 22Gains on sales of securities 45 130 84Gains on derivatives 240 694 453

38,830 124,720 85,889Reversal of outstanding claims - 994 994Reversal of underwriting reserves 38,629 123,295 84,666

43,902 130,910 87,00829,537 35,338 5,8014,630 6,464 1,833

600 2,229 1,6281 2 1

12,733 12,867 13433 85 52

11,537 13,688 2,151427 - (427)427 - (427)

12,066 94,003 81,93746 0 (46)

12,019 94,003 81,9831,761 1,506 (254)

110 61 (48)520 (2,069) (2,589)

5 1,793 1,7883 0 (3)2 3 0

Provision for price fluctuation reserve 2 3 0- 1,790 1,790

515 (3,862) (4,377)2 1 (0)2 1 (0)

513 (3,864) (4,377)



June 30, 2011


June 30, 2012Increase

(Decrease)

Amount Amount

Investment income

Insurance premiums and other

Ordinary income

April 1, 2011 to

June 30, 2011( ) (

April 1, 2012 to

June 30, 2012)

Net income/loss

Operating expenses

Ordinary profit

Total income taxes


Provision under the special law

Income/loss before income taxes


Ordinary expenses

Insurance claims and other


Other refunds



Reinsurance premiums

Insurance premiums

Reinsurance premiums


Insurance claims

Annuity payments

Benefits

Surrender benefits

Provision for underwriting reserves and other

Investment expenses

Interest expenses

Investment losses on separate accounts

30


Breakdown of ordinary profit (Core operating profit)

(Yen in millions)

April 1, 2011 to April 1, 2012 to

June 30, 2011 June 30, 2012

Ａ (235) (3,592) (3,357)

286 824 538

45 130 84

240 694 453

- - - Ｂ 286 824 538

Ａ＋Ｂ 51 (2,767) (2,818)

469 698 229469 698 229

0 0 (0)

- - - Ｃ 469 698 229

Ａ＋Ｂ＋Ｃ 520 (2,069) (2,589)Ordinary profit

Net capital gains/losses

Core operating profit including

net capital gains/losses

Non-recurring income

Non-recurring losses

Net non-recurring income/losses

Reversal of contingency reserves

Decrease in specific allowance for doubtful accounts

Capital gains

Core operating profit


Capital losses



June 30, 2012


June 30, 2011 Increase

(Decrease)( ) ( )

31

（（（（Reference：：：：Tokio Marine & Nichido Financial Life Insurance Co., Ltd. (non-consolidated)

Number of policies and policy amount

・Policies in force (Number in thousands, yen in 100 millions, %)

・New policies (Number in thousands, yen in 100 millions, %)

Annualized premiums

・Policies in force (Yen in 100 millions, %)

・New policies (Yen in 100 millions, %)

--

YTY comparison

2,534

9

--

29.3

99.1

YTY comparison

30.0

- -

98.63695.0

- -


- -


- -- -

-- -

- -

2,701

23,963

-

-

99.1

99.2

-

98.9

98.5

-

-

Number Amount


-


Amount

--- -

YTY comparison

-

YTY comparison

Total


accelerated death

benefits

6 13.7


Individual insurance -

6 13.7 1

-


April 1, 2011 to

June 30, 2011


accelerated death

benefits

Total

98.4

2,571

0

99.1


98.0

98.0

Individual annuities 2,556

YTY comparison

36

2,593

30.0

32 6.9 0

-


-

30.0

- - - -


1

Individual annuities 0 6.0

Group insurance - -

Group annuities

94.2

Group annuities --

Number Amount Number

YTY comparison

-

Individual insurance 35 96.0

YTY comparison

Number Amount

96.3


97.7

- -

463Individual annuities

2,731

98.1

Group insurance

24,335

-

466

--

As of June 30, 2012

April 1, 2011 to

June 30, 2011( )

April 1, 2012 to

June 30, 2012( )

YTY comparison

35

)

0


( )April 1, 2012 to

June 30, 2012(

32



Total amount of solvency margin (Ａ) 61,284 54,97246,620 42,755

Price fluctuation reserve 49 52Contingency reserve 12,085 11,387General allowance for doubtful accounts 0 0Net unrealized gains/losses on securities × 90%

（× 100% if losses）

Net unrealized gains/losses on land × 85%（× 100% if losses） - -Excess of continued Zillmerized reserve 2,054 339Subordinated debt, etc. - -Amounts within "Excess of continued Zillmerized reserve" and

"Subordinated debt, etc." not calculated into the margin

Deductions - -Other - -

Total amount of risks

　（Ｒ１＋Ｒ８）２＋（Ｒ２＋Ｒ３＋Ｒ７）

２＋Ｒ４

Insurance risk （Ｒ１） 122 122Third sector insurance risk （Ｒ８） 45 45Assumed interest risk （Ｒ２） 3 3Minimum guarantee risk （Ｒ７） 5,861 5,567Asset management risk （Ｒ３） 7,370 8,708Business administration risk （Ｒ４） 402 433

Solvency margin ratio (Ｃ)

[(Ａ)/{(Ｂ)×1/2}]×100898.7％ 747.2％

-

Total net assets

(Ｂ) 13,638 14,713

-


474 437

33

Glossary of terminology

● Loss ratio

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

● Expense ratio

Expense ratio = (Agency commissions and brokerage + Operating and general administrative expenses on

underwriting) ÷ Net premiums written × 100

● Underwriting profit

Underwriting profit = Underwriting income - (Underwriting expenses + Operating and general administrative

expenses on underwriting) ± other miscellaneous income and expenses

Other miscellaneous income and expenses mainly consist of the amount of income taxes relating to compulsory

automobile liability insurance.

● Number of policies and policy amount

• Policies in force

① Individual insurance and group insurance

Total amount of death benefits under policies in force at the end of period

② Individual annuities

Individual annuities for which payments have not yet commenced: Amount of funds for annuity payments

that is expected to have accrued at the date of the commencement of annuity payments.

Individual annuities for which payments have already commenced: Amount of underwriting reserves.

③ Group annuities

Amount of underwriting reserves

• New policies

① Individual insurance and group insurance

Total amount of death benefits under new policies issued in the period

② Individual annuities

Amount of funds for annuity payments that is expected to have accrued at the date of the commencement

of annuity payments or amount of coverage at the inception of new policies issued in the period

③ Group annuities

The first installment of premium payments

● Annualized premiums

Annualized premiums are the aggregate amount of premiums divided by the duration of insurance policies to show

the amount of premiums per year.

34

● Medical coverage and accelerated death benefits

Medical coverage and accelerated death benefits include coverage for medical expense (hospitalization and

operation), accelerated death benefits (specific diseases and nursing care) and exemption of obligation to pay

insurance premiums (excluding those caused by disability but including those caused by specific diseases and

nursing care).

● Solvency margin ratio (non-consolidated)

• In addition to reserves to cover claims payments and payments for maturity-refunds of saving type insurance

policies, etc., it is necessary for insurance companies to maintain sufficient solvency in order to cover against

risks which may exceed their usual estimates, i.e. the occurrence of major disasters, a significant decline in value

of assets held by insurance companies, etc.

• The solvency margin ratio (C); which is calculated in accordance with the Insurance Business Act, is the ratio of

"solvency margin of insurance companies by means of their capital, reserves, etc." (total amount of solvency

margin : (A)) to "risks which will exceed their usual estimates" (total amount of risks: (B)).

• "Risks which will exceed their usual estimates" (total amount of risks; (B)) is composed of risks described below.

① (General) insurance risk, third sector insurance risk: Risks of insurance claims in excess of normal

expectations occurring. (excluding risks relating to major disasters)

② Assumed interest risk: Risks of invested assets failing to yield assumed interest rates due to the aggravation

of investment conditions than expected.

③ Minimum guarantee risk: Risks related to the minimum guarantee for benefits of insurance contracts which

are managed as a separate account.

④ Asset management risk: Risks of retained securities and other assets fluctuating in prices in excess of

expectations.

⑤ Business administration risk: Risks beyond normal expectations arising from business management that

does not fall under other categories.

⑥ Catastrophe risk: Risks of the occurrence of major catastrophic losses in excess of normal expectations

occurring. (risks such as the Great Kanto Earthquake or Isewan typhoon)

• "Solvency margin of insurance companies by means of their capital, reserves, etc." (Total amount of solvency

margin:(A)) is total amount of net assets (excluding planned outflows), certain reserves (price fluctuation reserve,

contingency reserves and catastrophe loss reserves, etc.) and parts of net unrealized gains on real estate.

• The solvency margin ratio is one of the indicators used for the regulatory authorities to supervise insurance

companies. A ratio exceeding 200% indicates adequate ability to meet payments of insurance claims.

35

● Difference between real assets and liabilities (Real net assets)

"Real net assets" is one of the indicators used for administrative regulation, which shows the financial soundness of

life insurance companies.

"Real net assets (A)" is the amount of total real assets, including unrealized gains and losses of securities and real

estate, minus the amount of total real liabilities, excluding capital like liabilities, such as "price fluctuation reserve"

or "contingency reserve".

"Real net assets (B)" is the amount of "real net assets (A)" minus the amount of unrealized gains and losses on

"bonds held to maturity" and "bonds earmarked for underwriting reserves".

36