Tokio Marine and Millea Asia jointly invest into Sino Life 

The Tokio Marine and Fire Insurance Co., Ltd. (hereinafter Tokio Marine, registered in Japan, President: Kunio Ishihara) and Millea Asia Pte. Ltd. (hereinafter Millea Asia, registered in Singapore, CEO: Takaaki Tamai), both of which are subsidiaries of Millea Holdings, Inc. (hereinafter Millea Holdings, registered in Japan, President: Kunio Ishihara) have reached an agreement with Sino Life Insurance Company Ltd. (hereinafter Sino Life, registered in Shanghai, PRC, Chairperson: Li Gang) that Tokio Marine and Millea Asia will jointly subscribe about 338 million new issued shares, representing 24.9% of the enlarged share capital of Sino Life, for about RMB1,059 million (about US$127 million). Millea Group will support in the business development of Sino Life in accordance to the technical assistance and secondment agreement. The transaction is subject to approval by the China Insurance Regulatory Commission (hereinafter CIRC).

Sino Life was established on March 4, 2002. The license granted is a national operational license without any geographical limitation nor product line limitation, which differs from other foreign joint venture licenses with such limitations. Sino Life plans to expeditiously broaden its presence in more established provinces and cities by establishing branches in Beijing, Dalian, Hangzhou, Nanjing, Shanghai, Qingdao, Fuzhou and Guangzhou, etc., and diligently working towards commencing operation by autumn this year.

Sino Life has already commenced its preparation for business operation, and Millea Group will assist in the start up by seconding professionals and providing the related technical assistance immediately upon approval by CIRC. Millea Group will appoint four directors to the Board of Directors of Sino Life based on its equity proportion..

Tokio Marine has expanded its operation in China mainly in non-life (property and casualty) insurance sector since 1980, when it established the representative office in Beijing as the first foreign insurance company ever allowed. In September 1994, Tokio Marine was allowed to commence direct business via Shanghai branch as the second foreign insurance company in the market. Tokio Marine currently has seven representative offices in addition to the Shanghai branch which is one of the most extensive network amongst foreign insurance companies operating in China. With this investment into Sino Life, Millea Group will strengthen its commitment into the high growth insurance market for both life and non-life.

HSBC acted as the financial advisor to Millea Group. Freshfields Bruckhaus Deringer acted as the international legal counselor to Millea Group. 

                                               Company Profiles 

Sino Life Insurance Co., Ltd.
Chairperson: Mr. Li Gang
General Manager: Mr. Li Zhenghuai
Capital: RMB 1,358million (US$ 162million, post investment of Tokio Marine & Millea Asia)
Head Office: Shanghai, China

Millea Holdings, Inc.
President: Kunio Ishihara
Capital: JPY150billion (as of March 2003)
Head Office: Tokyo, Japan
Millea Holdings was established in 2002 as the holding company of The Tokio Marine and Fire Insurance Co., Ltd. and The Nichido Fire and Marine Insurance Co., Ltd.(Nichido Fire), whereby the managements of the two direct non-life operation had been integrated. Millea Group is the largest non-life insurance group in Japan as well as one of the largest in the world, and is listed on the Tokyo Stock Exchange, Osaka Stock Exchange and Nasdaq.

The Tokio Marine and Fire Insurance Co., Ltd.
President: Kunio Ishihara
Capital: JPY102billion (as of March 2002)
Total Asset: JPY8, 456billion (as of March 2002)
Head Office: Tokyo Japan
Founded in 1879, Tokio Marine is Japanfs oldest and largest non-life insurance company. Since 1994, Tokio Marine has established a branch office in Shanghai to provide non-life insurance services in China. In 2002, together with Nichido Fire established Millea Holdings as the holding company.

Millea Asia Pte. Ltd.
CEO: Takaaki Tamai
Head Office: Singapore
Millea Asia was established in December 2002 and it assumes a role as the regional headquarter for Millea Groupfs Asian operation and as the intermediate holding company for Asian subsidiaries and affiliates. Millea Asia is wholly owned by Millea Holdings.