<Selling of a new product developed by "Tokio Marine Newa", a Taiwan-based non-life insurance company with the know-how of Tokio Marine & Nichido Fire>

Tokio Marine Newa Insurance Co., Ltd., an affiliated company of Millea Holdings, Inc. (President: Kunio Ishihara) obtained the approval of new insurance "Weather Insurance (Typhoon Type)" from the Ministry of Finance in Taiwan on July 25 and is going to sell it in August.

In Taiwan, the Weather Insurance (Typhoon Type) is the first financial and insurance product which offers a hedge against typhoon risks. It is expected that there will be a great demand for this epoch-making product in the country which is hit by many typhoons every year.

First product of insurance in Taiwan as a hedge against typhoon risks

Taiwan is one-tenth the size of Japan but is hit by 4 typhoons annually on the average (1. 5 times the number of typhoons hitting Japan). It is one of the areas in the world which have the highest frequency of typhoons, and many companies in Taiwan suffered a lot of damage from typhoons, directly by storms and floods and also indirectly by business interruption following typhoons.

The newly-developed Weather Insurance (Typhoon Type) is an epoch-making product which indemnifies the insured for indirect damage which is not fully covered under any of the existing products. Insurance claims based on the insured amounts agreed upon in advance will be paid according to the number of the days of warning over the ocean and on land announced by the Central Weather Bureau in Taiwan. We believe that a strong need for this insurance exists in every kind of industry which has been hit hard by typhoons, especially, tourism, transportation and restaurant businesses.

Use of the experience and know-how of Tokio Marine & Nichido

In the development of this product, we depended upon the ample experience and know-how of Tokio Marine & Nichido in weather insurance and weather derivatives in various Asian countries; the company developed weather insurance in 1999 and started to sell weather derivatives all over Japan. Tokio Marine & Nichido, as one of the leading insurance companies in the world in the field of weather risk management, will continue its efforts to develop and sell weather risk related products.

Product development by Tokio Marine Newa

Tokio Marine Newa born after a merger in 2005 is the 4th largest non-life insurance company in Taiwan in terms of direct premiums written in 2004. The company, which has strength, for example, in the selling of automobile insurance throu$gh its agency networks, is committed to make constant efforts to provide innovative and high-quality products and services, better than those in the past and contribute to the prosperity of customers and the Taiwan market.

Summary of Tokio Marine Newa

Chairperson: Kenneth K. Yen
President: C.K.Chen
No. of employees: About 900
Location of the Headquarters: Taipei
Shareholders: Yuron Group 51.1% (including small shareholders) Millea Asia 48.9%
Capital: NT$ 2,990,099,000 (about Yen 9.9 billion)
Direct written premiums: About Yen 28 billion, being the total of the direct   
                                     premiums written in 2004 by the two merged companies.