June 2, 2008
Millea Holdings, Inc.
President: Shuzo Sumi
TSE code number: 8766
Reorganization of Kiln Group
Millea Holdings, Inc., (the "Company”) (President: Shuzo Sumi) announced today that in order to streamline the structure of Kiln group it has resolved to wind up Kiln Ltd, the holding company, and Kiln Reinsurance Ltd, the reinsurance company, member companies of Kiln Group.
On March 10, 2008, the Company acquired Kiln Group, a global insurance player with its primary base in the U.K. insurance market of Lloyd's, through Tokio Marine & Nichido Fire Insurance Co., Ltd. ("Tokio Marine & Nichido"), a wholly owned subsidiary of the Company.
The winding up of these two companies is part of a structural reorganization plan to streamline Kiln Group and is not intended to cause any change with respect to the routine business operations of Kiln Group, such as with underwriting activities at Lloyd's.
The Company will continue to strive to increase profits from its overseas insurance business operated through Kiln Group.
1. Brief description of Kiln Ltd and Kiln Reinsurance Ltd
(1) Kiln Ltd (Hamilton, Bermuda, Capital: GBP2.9 million)
Kiln Ltd is a wholly-owned subsidiary of Tokio Marine & Nichido and the holding company of Kiln Group. The business operation of Kiln Ltd will be transferred to Kiln (UK) Holdings Limited, a wholly owned subsidiary of Kiln Ltd and the intermediary holding company of Kiln Group.
(2) Kiln Reinsurance Ltd (Hamilton, Bermuda, Capital: GBP70,000)
Kiln Reinsurance Ltd is a wholly-owned subsidiary of Kiln Ltd and the reinsurance company of Kiln Group. The existing reinsurance related contracts held by Kiln Reinsurance Ltd will be transferred to other group companies of Millea Group and subsequently Kiln Reinsurance Ltd will be wound up together with Kiln Ltd.
2. Expected timeline
The winding up is expected to be completed within 2008 calendar year.
3. Impact on financial results of Millea
The impact of the winding up described above on the business forecasts of the Company for the fiscal year ending March 31, 2009 that were announced on May 21, 2008 is expected to be negligible.
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