Millea Holdings, Inc. ("Millea Holdings", President and Director: Kunio Ishihara) has announced to revise its business plan, originally announced on May 27, 2005 for the fiscal year ending March 31, 2006 ("FY2005") to target 126.5 billion yen in total adjusted earnings.

 

Millea Group will aim to turn its domestic property and casualty insurance business around and increase annual premium volume despite the decrease in the previous fiscal year, in order to establish a solid ground for growth. In the domestic property and casualty insurance business, Millea Group will aim to achieve 95.5 billion yen in adjusted earnings in light of changes in investment returns.

In the domestic life insurance business, although the sales volume of variable annuity is increasing, we expect an increase in business expenses for improvements in our infrastructure. Accordingly, Millea Group will aim at 22.0 billion yen in adjusted earnings.

Millea Group will aim to earn 5.5 billion yen in adjusted earnings in the overseas insurance business, in light of the losses from Hurricane Katerina incurred mainly in the reinsurance line of business.

In financial and other businesses, Millea Group will aim to actively expand and achieve 3.5 billion yen in adjusted earnings.

* In order to capture the corporate value of the Millea Group and to aim for the enhancement thereof, the management uses "adjusted earnings" to determine adjusted income and adjusted ROE (see Appendix 2 for details).

* Overhead costs for overseas operations are charged to the overseas insurance business.

* See Appendix 1 for business performance indices for each major business segment.

The information contained herein includes certain forward-looking statements that are based on our current plans, targets, expectations, assumptions, estimates and projections about our businesses and operations. These forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may materially differ from those contained in the forward-looking statements as a result of various factors. For a discussion of the factors which may have a material impact upon our financial condition, results of operation and liquidity, see our annual report on Form 20-F for the fiscal year ended March 31, 2005.

Appendix 1

1. Domestic property and casualty business
Indices for Tokio Marine & Nichido are as follows:

(Yen in billions except percentages)

	FY2004 (actual)	FY2005 (original plan)	FY2005 (revised plan)
Net premiums written	1,883.3 <1,730.0>	1,868.0 <1,721.6>	1,903.0 <1,756.7>
Expense ratio	31.4% <34.2%>	30.6% <33.2%>	30.3% <32.9%>
Adjusted earnings	18.4	Approximately 110.0	95.0

* Figures in < > exclude the impact of revisions to the Compulsory Automobile Liability Insurance regulations.

2. Domestic life insurance business
Indices for Tokio Marine & Nichido Life and Tokio Marine & Nichido Financial Life are as follows:

(Yen in billions)

	FY2004 (actual)	FY2005 (original plan)	FY2005 (revised plan)
Annualized premiums for new policies	58.3	76.3	85.5
Tokio Marine & Nichido Life	54.7	64.9	57.3
Tokio Marine & Nichido Financial Life	3.6	11.4	28.2

* Annualized premiums for new policies are derived by dividing the aggregate amount of premiums by the duration of insurance policies to show the amount of premiums per year. With respect to whole-life insurance policies, the total amount of insurance premiums paid is calculated for a term up to the age of 80 of the insured, and in any case for a minimum of ten years if the current age of the insured is higher than 70.

3. Overseas insurance business
We continue to position Asia as a main market in the overseas insurance business with high growth and profitability potential. We also intend to expand insurance operations in the Brazil, Russia, India and China group of countries, or BRIC, where the economies and the insurance markets are expected to grow significantly. The indices for the overseas insurance business are as follows:

(Yen in billions)		(Yen in billions)
FY2004 (actual) FY2005 (original plan) Net premiums written 78.2 160.0 Millea Asia 33.4 41.5 Direct insurance (excluding Millea Asia) 25.6 88.4 Reinsurance (excluding Millea Asia) 19.2 30.1		FY2005 (revised plan) Net premiums written 229.3 Asia 43.7 North America 51.2 Europe & Middle East 13.5 South America 86.2 Others 6.0 Reinsurance 28.7

* Net premiums written are calculated taking into account the ratio of respective equity interest of Millea Holdings in each local subsidiary.