November 22, 2005
Millea Holdings, Inc.
Revision of FY2005 Business Plan of Millea Holdings, Inc.
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.
Business performance indices for major business segments
1. Domestic property and casualty business
* Figures in < > exclude the impact of revisions to the Compulsory Automobile Liability Insurance regulations.
* 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.
* Net premiums written are calculated taking into account the ratio of respective equity interest of Millea Holdings in each local subsidiary.