Millea Holdings

Millea Holdings, Inc., a holding company headquartered in Tokyo, Japan, was created in April 2002 as the umbrella structure for the international insurance businesses of Tokio Marine and Nichido Fire. Millea Holdings was the first publicly owned holding company in Japan integrating life insurance and nonlife insurance operations. One of the key objectives in the corporate vision of Millea Holdings is to become one of the world's top-tier insurance groups through customer trust and to make a positive contribution to society by offering safety and security products and services.

Millea Holdings breaks its insurance lines into five segments plus another category. These segments and their percent of premiums written are as follows: fire and allied lines (15.6), hull and cargo (4.2), personal accident (7.5), voluntary automobile (45), compulsory automobile liability (15), and other (12.6). The Millea Group plans to grow its businesses through the expansion of products and services (prevention services and care services), sales channel expansion as a result of government regulatory liberalization, and the expansion of its global regional businesses through mergers and acquisitions, equity partnerships, and business alliances.

The operating subsidiaries of Millea Holdings include the following: Tokio Marine & Nichido (non-life insurance), Nisshin Fire (nonlife insurance), Tokio Marine and Nichido Life (life insurance), Tokio Marine & Nichido Financial Life (life insurance, especially variable annuity and life policies), Millea Nihon Kosei (small-amount, short-term insurance), Tokio Marine & Nichido Anshin Consulting (agent for non-life and life insurance, as well as, individual financial consulting services), Tokio Marine & Nichido Career Services (staffing and employment services), Tokio Marine Nichido Samuel (operator of elderly care facilities), Tokio Marine & Nichido Facilities (property and equipment management), Tokio Marine & Nichido Medical Services (medical care and health-related services), Tokio Marine & Nichido Risk Consulting (insurance underwriting risk investigations and risk consulting services), Millea Mondial (assistance and business process outsourcing services), Millea Real Estate Risk Management (real estate investment advisory services), Tokio Marine Asia (a subsidiary holding company for Asian insurance operations excluding Japan), Tokio Marine Bluebell Re (reinsurance for variable annuities), and Tokio Marine Seguradora (life and nonlife insurance in Brazil).

The Millea network of companies, subsidiaries, affiliates, branches, offices, and agents has a worldwide presence. In North America it is represented in the United States, Canada, Bermuda, and the Cayman Islands. In Central and South America it is represented in Mexico, Brazil, and Paraguay. In Europe it is represented in the United Kingdom, France, Germany, the Netherlands, Belgium, Italy, Spain, Ireland, Norway, Denmark, and Greece. In Eurasia it is in Russia. In the Middle and Near East it is represented in the United Arab Emirates, Saudi Arabia, Bahrain, and Turkey. In Oceania and Micronesia it is represented in Australia, New Zealand, Guam, and the Commonwealth of the Northern Mariana Islands. In Asia it is represented in Korea, mainland China, Hong Kong, Taiwan, the Philippines, Vietnam, Thailand, Malaysia, Singapore, Brunei, Indonesia, India, and Myanmar.

Millea Holdings has a market capitalization of some 150 billion yen for the approximately 824,524,375 shares issued. For fiscal year 2007, Millea reported net assets per share of 4,127.60 yen. The Millea Group uses embedded value (EV) and return-on-equity (ROE) as [Page 1132]its method of evaluation value and performance in its insurance businesses. For its fiscal year 2006, Millea had an EV of 335.2 billion yen, which consisted of the sum of its net asset value of 97.6 billion yen and its in-force business value (net earnings) of 237.5 billion yen. Millea contracts with Tillinghast, the financial services consulting unit of Towers Perrin, to verify its reported EV. The Millea Group targets an adjusted ROE of approximately 5 percent annually.

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