January 10, 2003
Millea Holdings, Inc.
Postponement of Demutualization of Asahi Mutual Life Insurance Company and
Asahi Mutual Life Insurance Company (Asahi Life) had been preparing to demutualize and integrate its management and businesses under Millea Holdings, Inc. (Millea Holdings) around 2004. However, Asahi Life decided to postpone its plan to demutualize around 2004 based on the following considerations:
(a) Asahi Life currently intends to enhance the soundness of its financial base and to strengthen its profit generating capacity by achieving comprehensive management reform based on its implementation of "Project R" and its new business strategy "SUCCESS A".
(b) Based on prevailing conditions, Asahi Life believes demutualization could adversely affect its ability to distribute profits to policyholders and is not currently in the best interest of its policyholders.
Asahi Life has requested Millea Holdings to cancel the proposed business integration of Asahi Life under Millea Holdings --- which had been conditioned on, among other things, Asahi Life's demutualization. Millea Holdings agreed to Asahi Life's request, respecting the business decision.
Asahi Life expects to continue, as its top priority objectives, implementation of "Project R" and "SUCCESS A" and intends to enhance the soundness of its financial base and to strengthen its profit generating capacity. In the future, Asahi Life intends to demutualize and present a proposal to Millea Holdings to integrate its management and businesses based on prevailing economic conditions and other factors. Millea Holdings will, at any such time, consider whether to accept an Asahi Life proposal of integration.
As a result of todayfs announcement, Millea Insurance Group will no longer exist. Asahi Life and Millea Holdings and its subsidiaries expect to maintain good relationships and promote mutually beneficial business practices and operations, including continued distribution of property and casualty insurance products through Asahi Life sales personnel and joint development efforts relating to 401k-type Japanese retirement plans.