On January 27th, the US ratings agency Standard & Poor's(hereafter S&P) downgraded Japan's long-term sovereign credit rating one notch from 'AA' to 'AA-'. Concurrently, the ratings of Tokio Marine & Nichido Fire Ins. Co., Ltd. and other operating subsidiaries were downgraded one notch from 'AA' to 'AA-' (Some companies were downgraded from 'AA-' to 'A+').

The lowering of our group companies' ratings were carried out by S&P's so-called 'sovereign ceiling' evaluation criteria to link our credit rating with Japan's long-term credit rating, thus we believe that the long-term outlook of our group companies remains generally unchanged.

The financial strength of our group companies including our overseas subsidiaries is predicated upon a robust capital base, a strong client base, a steady underwriting earnings stream and a prudent investment policy. Considering the fact that some subsidiaries are further backed by capital support in the form of parental guarantees by Tokio Marine & Nichido Fire Ins. Co., Ltd., we understand that our financial strength remains very strong and stable, and we will continue to maintain a strong financial base focused on long-term stability.