Tokio Marine Holdings, Inc.
President: Shuzo Sumi
TSE code number: 8766
Tokio Marine Holdings, Inc. (the "Company") announced today that it has revised the forecasts of its consolidated business results under Japanese GAAP for the six months ended September 30, 2008 ("FY 2008 Interim") originally announced on May 21, 2008 as detailed below.
1. Revised forecasts for FY2008 Interim
| | Ordinary income
(million yen) | Ordinary profit
(million yen) | Net
income
(million yen) | Net income
per share
(yen) |
| Original forecast*
(A) | 2,041,600 | 112,000 | 78,000 | 97.22 |
| Revised forecast (B) | 1,959,000 | 14,000 | 18,000 | 22.50 |
| Difference (B)-(A) | -82,600 | -98,000 | -60,000 | - |
| Rate of increase/decrease (%) | -4.0 | -87.5 | -76.9 | - |
| (Reference)
Actual results for the six months ended September 30, 2007 | 1,894,507 | 95,637 | 75,003 | 91.43 |
*Announced on May 21, 2008
2. Explanation of revisions
The downward revision of forecasted ordinary income and of net income is primarily due to expected increases in investment expenses and in losses from financial guarantee reinsurance, both of which are attributable to the decline of the domestic stock market and turbulence in the global financial markets. The main components of these increases are expenses incurred due to revaluations of (i) securities, (ii) monetary receivables bought and (iii) credit default swaps, in the amounts of 31 billion yen, 17 billion yen and 9 billion yen, respectively, and losses arising from financial guarantee reinsurance of 10 billion yen.
A revised business forecast of the Company for the fiscal year ending March 31, 2009 is expected to be announced on November 19, 2008, which will be the same date that the Company expects to announce its business results for the six months ended September 30, 2008.
(Reference) Below are the details of the revised forecasts of non-consolidated business results under Japanese GAAP for the six months ending September 30, 2008 of Tokio Marine & Nichido Fire Insurance Co., Ltd., a wholly-owned subsidiary of the Company.
| | Net premiums written
(million yen) | Ordinary profit
(million yen) | Net
income
(million yen) |
| Original forecast**
(A) | 955,000 | 85,000 | 60,000 |
| Revised forecast (B) | 928,000 | 18,000 | 20,000 |
| Difference (B)-(A) | -27,000 | -67,000 | -40,000 |
| Rate of increase/decrease (%) | -2.8 | -78.8 | -66.7 |
| (Reference)
Actual results for the six months ended September 30, 2007 | 958,958 | 75,790 | 62,769 |
**Included in page 5 of "Information about major subsidiaries' business results
for the year ended March 31, 2008" announced on May 21, 2008.
