Millea Holdings,Inc. (Holding company of The Tokio Marine and Fire Insurance Co., Ltd. and The Nichido Fire and Marine Insurance Co., Ltd. President is Kunio Ishihara. herein after "Millea") has decided to acquire 30% of the outstanding shares of Newa Insurance Co., Ltd (herein after "Newa") through the affiliate company of Millea Holdings Group. Newa is a general insurance subsidiary of major Taiwanese conglomerate, Yulon Group.
The amount of investment is NT$ 960 Million. Investment will take place following the completion of a detailed investment scheme and the approval of Investment commission, Ministry of Economic Affairs in Taiwan.

Expanding the insurance business operations in Asia is a very important strategic objective for Millea.
Millea believes that various synergy effects will be created between Newa's strong market presence in Taiwan, especially in the field of motor insurance business and Millea's expertise fostered in Japan, especially in the field of commercial business.
Millea intends to enhance the volume and profitability of its Asian insurance business by providing value-added services to Taiwanese customers through this joint venture.

First Commercial Bank, one of the largest commercial banks in Taiwan, is also planning to make 30% investment into Newa.

General Information on Newa Insurance

Company name : Newa Insurance Co.,Ltd.

President : C.K.Chen

Paid in capital : NT$ 2,000M ( as at Dec.2001)

Total assets : NT$ 4,627M ( as at Dec. 2001)

Net profit : NT$ 213M ( for the year of 2001)

Gross direct written premium : NT$ 3,539M ( for the year of 2001)

Number of employee : 429 ( as at Dec. 2001)

General Information on Yulon Group

Yulon Group is one of the major conglomerates in Taiwan. Core business of Yulon Group are auto manufacturing and sales.

Consolidated sales volume : NT$ 143 Billion (for the year of 2001)

Consolidated total assets : NT$ 212 Billion (as at Dec 2001)

Consolidated net assets : NT$ 124 Billion (as at Dec2001)

The number of employee : 11,794 (as at Dec 2001)

Overview of Taiwan General Insurance Market

Total market size is NT$ 90,829M. (Gross direct written premium for the year of 2001.) Major line of business is auto insurance. It consists of about 52% of the total business.
Newa Insurance was ranked 4th among 27 general insurers in terms of auto insurance premium and its market share is 6.92% in 2001. (For all lines, Newa is ranked 12th and its market share is 3.90%.)
Currently (Period from January to July in 2002), Newa's market share for auto insurance has reached to 7.54%. (For all lines, Newa's ranking moves up to 10th among 26 general insurers and its market share has reached to 4.20%.)

General Information of Millea Holdings Group

Millea Holdings, Inc. is a holding company created jointly by The Tokio Marine and Fire Insurance Co., Ltd., the largest Japanese general insurance company and The Nichido Fire and Marine Insurance Co., Ltd., the 6th largest Japanese general insurance company. Poised to take full advantage of the strengths of each subsidiary, the Holding Company Group, with Millea Holdings, Inc. at its core, strives to achieve continuous growth and pursues increased profitability based on a highly flexible managerial style and a quick decision-making structure.