The Kyoei Mutual Fire & Marine Insurance Company (Kyoei Fire) and Millea Holdings, Inc. (Millea Holdings) had been preparing for the integration of Kyoei Fire under Millea Holdings as a wholly-owned subsidiary through a statutory share exchange following the restructuring and conversion of Kyoei Fire into a joint-stock company on April 1, 2003. Today, however, both companies agreed to terminate the proposed business integration under Millea Holdings.

Kyoei Fire received an offer from the National Mutual Insurance Federation of Agricultural Cooperatives (JA-Kyosairen) whereby Kyoei Fire would become a subsidiary of JA-Kyosairen. Under the proposed arrangement, JA-Kyosairen will consider managing its short-term mutual insurance business more closely with the business of Kyoei Fire. Kyoei Fire determined that this arrangement will allow Kyoei Fire to more fully utilize its strengths and special characteristics in the future. In accepting the offer, Kyoei Fire requested Millea Holdings and the Millea Insurance Group companies to discontinue their relationships with Kyoei Fire and to cancel the proposed business integration of Kyoei Fire under Millea Holdings. Millea Holdings agreed to Kyoei Fire's request, respecting the business decision.

Although Kyoei Fire has withdrawn from the Millea Insurance Group, it continues to enjoy good relationships with Millea Insurance Group companies.