As of October 1, 2005, pursuant to the defined benefit corporate pension law, Tokio Marine & Nichido Fire Insurance Co., Ltd. (Tokio Marine & Nichido), a subsidiary of Millea Holdings, obtained approval from the Minister of Health, Labor and Welfare of Japan to transfer a portion of its benefit obligations relating to prior employee services to the government. Tokio Marine & Nichido expects to recognize a gain on the transfer of the benefit obligations as an "extraordinary gain" for the year ending March 31, 2006, pursuant to article 44-2 of the Accounting Committee Report No.13 "Guideline for practice concerning accounting for retirement benefits (preliminary report)" issued by the JICPA. We expect that the impact on Millea Holdings' consolidated financial results would amount to an extraordinary gain of approximately 36,197 million yen for the year ending March 31, 2006.

The expected impact of the transfer of the benefit obligations has already been reflected in the forecast of consolidated business results of Millea Holdings for the year ending March 31, 2006 which was announced previously. Accordingly, the forecast has not been revised.