Millea Nihon Kosei SS Insurance Co., Ltd. (President: Takeshi Kurata; hereinafter, “Millea Nihon Kosei”), a small-amount short-term insurer, and Zenrenkyo Co., Ltd. (President: Minosuke Enomoto; hereinafter, “Zenrenkyo”), a specified insurer, have agreed to the transfer of Zenrenkyo’s business regarding the underwriting of new policies (hereinafter, the "Business Transfer”) to Millea Nihon Kosei effective April 1, 2008. Under the terms of the Business Transfer, all Zenrenkyo employees will transfer to Millea Nihon Kosei.
Zenrenkyo will continue to be responsible for the existing policies currently in force, but management of and services related to these policies will be outsourced to Millea Nihon Kosei after the Business Transfer.
Millea Nihon Kosei became a subsidiary of Millea Holdings, Inc. (President: Shuzo Sumi) on January 21, 2008 through equity transactions and also changed its name on the same date from Nihon Kosei Kyosaikai Co., Ltd., to Millea Nihon Kosei SS Insurance Co., Ltd.

1. Background/purpose of the Business Transfer
Zenrenkyo is a specified insurer providing mutual insurance products to residents of rental housing, nationwide but mainly in the Kyushu Region. Millea Nihon Kosei, who has completed its registration as a small-amount short-term insurer in December 2007, provides similar products to its customer base in the Kanto Region. Both companies are major players in the industry with similar business models - as seen in their products (package products consisting of coverage to household goods and liability insurance) and sales channels (primarily through property leasing and management companies) - which will make a smooth merger possible and the main geographical customer bases are also highly complementary.
The Business Transfer will allow Zenrenkyo to utilize the business infrastructure – products, administration, IT systems, etc. - of Millea Nihon Kosei, who has already been expanding its business as a small-amount short-term insurer.
As for Millea Nihon Kosei, it expects to benefit from the complementary nature of the two companies’ geographical customer bases, which will help to expand its sales territory. It will also be able to achieve greater efficiency through economy of scale and shared head office functions.
In taking over Zenrenkyo’s business base, Millea Nihon Kosei will seek to further enhance its sales channels and improve productivity, providing products and services that meet the diverse needs and trust of its resident customers and property leasing and management companies.

2. Profiles of the two companies
(Note 1) For the fiscal year ended March 31, 2007. Figures for Millea Nihon Kosei are those of its private organization forerunner, the Nihon Kosei Kyosaikai.
(Note 2) As of December 31, 2007.