February 4, 2009
Tokio Marine Holdings, Inc.
President: Shuzo Sumi
TSE code number: 8766
Impairment Losses on Securities for the Third Quarter of FY 2008
Tokio Marine Holdings, Inc. (the "Company") announced its projected total amount of impairment losses on securities of the Company and of Tokio Marine & Nichido Fire Insurance Co., Ltd. ("Tokio Marine & Nichido"), a wholly-owned subsidiary of the Company, for the third quarter of the fiscal year ending March 31, 2009 ("FY 2008") today. The Company figures are on a consolidated basis and the Tokio Marine & Nichido figures are on a non-consolidated basis.
At the end of every quarter the Company and Tokio Marine & Nichido use the reversal method of accounting for impairment losses on securities. Consequently, the total amount of impairment losses on securities to be presented for the fourth quarter of FY2008 may differ from the figures shown below and will depend on various factors, including the fair value of the relevant securities, as of March 31, 2009.
1. Impairment Losses on Securities for the Third Quarter of FY 2008
（Yen in billions)
Note 2: 155.1 billion yen of impairment losses on securities on the Company's consolidated financial statements consist of (i) 94.7billion yen of impairment losses on securities on the Company's subsidiaries' financial statements and (ii) 60.3 billion yen of impairment losses recorded on the Company's consolidated financial statements arising from the adjustment made in accordance with the purchase method of accounting (*) for business combination.
(*)The Company's consolidated financial statements have recorded the securities held by the acquired companies, including The Nichido Fire and Marine Insurance Company, Limited, a predecessor company of Tokio Marine & Nichido, and Nisshin Fire & Marine Insurance Co., Ltd., at the fair value as of the respective dates of acquisition in accordance with the purchase method of accounting. Consequently, the book value of the relevant securities on the Company's consolidated financial statements is greater than those on the two subsidiaries' individual financial statements, and so are the impairment losses on the relevant securities.
Note 3: Securities available for sale that have a determinable fair value have been written down to fair value and accounted for as impairment losses on securities if the decrease in fair value amounts to 30% or more of the book value.
Note 4: Other than the impairment losses on securities shown in (a) above, the Company projects impairment losses of 29.6 billion yen in connection with monetary receivables bought, which includes projected impairment losses of 25.6 billion yen of monetary receivables bought held by Tokio Marine & Nichido. The impairment losses of 29.6 billion yen are included in "other investment expenses" on the Company’s consolidated statement of income.
The chart below shows the proportions of impairment losses on securities for the third quarter of FY 2008 and for the nine months ended December 31, 2008 as compared to net assets as of, and ordinary profit and net income for the fiscal year ended, March 31, 2008.
（Yen in billions, except percentages)
2. Forecast of Business Results for FY 2008
The forecast of business results of the Company for FY 2008 is under review. If the Company finds it necessary, the Company will announce in a timely manner a revision to its November 19, 2008 forecast of business results for FY 2008.