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.