Mitsui Sumitomo Insurance 6K Company, Limited

Mitsui Sumitomo Insurance 6-KMitsui Sumitomo Insurance Company, Limited

FORM 6-K

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934

Commission File Number: 333-13586

For the Month of December, 2002

Mitsui Sumitomo Insurance Company, Limited

(Translation of registrant’s name into English)

27-2, Shinkawa 2-chome,
Chuo-ku, Tokyo 104-8252, Japan

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.


Form 20-F	X	Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ______

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ______

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.


Yes	No	X

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-___________

TABLE OF CONTENTS


SIGNATURES
1. [Translation in English]
	Summary of Semiannual Non-Consolidated Financial Statements for the Year Ending March 31, 2003
2. [Translation in English]
	Reference Materials for the Six Months ended September 30, 2002
3. [Translation in English]
	Summary of Semiannual Consolidated Financial Statements for the Year Ending March 31, 2003
4. [Translation in English]
	News Release (December 3, 2002) — Notice Regarding the Acquisition of the Company’s Treasury Stock
5. [Translation in English]
	News Release (December 26, 2002) — Notice Regarding Purchase of the Company’s Treasury Stock in the Market

Information furnished on this form:

Table of Contents

[Translation in English]

“Summary of Semiannual Non-Consolidated Financial Statements for the Year Ending March 31, 2003”

[Translation in English]

“Reference Materials for the Six Months ended September 30, 2002”

[Translation in English]

“Summary of Semiannual Consolidated Financial Statements for the Year Ending March 31, 2003”

4.		[Translation in English]

		News Release (December 3, 2002)

“Notice Regarding the Acquisition of the Company’s Treasury Stock”

5.		[Translation in English]

		News Release (December 26, 2002)

“Notice Regarding Purchase of the Company’s Treasury Stock in the Market”

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


		Mitsui Sumitomo Insurance Company, Limited

Date: January 9, 2003		By: /s/ Kazuhiko Yaguchi

		Kazuhiko Yaguchi General Manager , Shareholder Relations & Legal Dept.

Special Note Regarding Forward-looking statements

This document contains forward-looking statements that are based on the Company’s expectations, assumptions, estimates and projections about its business, its industry and capital markets around the world. These forward-looking statements are subject to various risks and uncertainties. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “anticipate,” “estimate,” “plan” or similar words. These statements discuss future expectations, identify strategies, contain projections of results of operations or of our financial condition, or state other forward-looking information. Known and unknown risks, uncertainties and other factors could cause the actual results to differ materially from those contained in any forward-looking statement. The Company cannot promise that its expectations expressed in these forward-looking statements will turn out to be correct. Its actual results could be materially different from and worse than its expectations. Important risks and factors that could cause its actual results to be materially different from its expectations include, but are not limited to: (1) continuation or intensification of the economic downturn in Japan ; (2) the extent of competition that the Company faces from Japan’s other major non-life insurance companies and new entrants in the Japanese non-life insurance market ; (3) the extent of further deregulation of the Japanese insurance industry ; (4) occurrence of natural disasters in Japan ; (5) occurrence of losses the type or magnitude of which could not be foreseen by the Company at the time of writing the insurance policies covering such losses ; (6) the price and availability of reinsurance ; (7) the performance of the Company’s investments ; and (8) the Company’s relationship with the other “Mitsui” and “Sumitomo” companies.

1. [Translation in English]

November 22, 2002

Summary of Semiannual Non-Consolidated Financial Statements
for the Year Ending March 31, 2003


Name of Listed Company:		Mitsui Sumitomo Insurance Company, Limited
Code Number:		8752
Stock Exchanges:		Tokyo Stock Exchange, Osaka Securities Exchange and Nagoya Securities Exchange

Headquarters:		Tokyo
(URLhttp://www.ms-ins.com)
Representative:		Hiroyuki Uemura, President & Director
Contact:		Hiroyuki Takahashi Manager of Financial Accounting Section, Accounting Dept. Phone number 03-3297-6648

The Board of Directors approved the non-consolidated financial statements of Mitsui Sumitomo Insurance Company, Limited (the “Company”) on the following date: November 22, 2002

Whether or not the system to pay interim dividends has been provided for in the Articles of Incorporation: Not provided.

Whether or not the unit share (tan-gen kabu) system has been adopted by the Company: Provided
(The unit of shares for one vote (1tan-gen) is 1,000 shares)

Non-consolidated business results for the six months ended September 30, 2002 (from April 1, 2002 to September 30, 2002):

	(Notes)(1)		The Company was renamed as of October 1, 2001, as a result of the merger of Mitsui Marine and Fire Insurance Company, Limited (“Mitsui”) and The Sumitomo Marine & Fire Insurance Company, Limited (“Sumitomo”). In order to compare with the business results for the six months ended September 30, 2002, the business results for the six months ended September 30, 2001 are represented, in principle, by the accumulated figures of business results of Sumitomo and Mitsui without any adjustment. The business results for the year ended March 31, 2002 are represented by the accumulated figures of Sumitomo for April 1, 2001 through September 30, 2001 and the Company for April 1, 2001 through March 31, 2002 without any adjustment. (The same shall be applied hereinafter.)

			Provided, however, that net income per share, the average number of shares in issue, shareholders’ equity per share and the number of shares issued as at the end of the fiscal year and the semiannual period are represented without accumulating business results of respective companies.

	(2)		Any amounts less than the stated unit have been disregarded and ratio is rounded to the nearest whole number. Any negative amounts appear with the mark (-).

(1)

Non-consolidated operating results


															Net income
	Net premiums written						Ordinary profit				Net income				per share

	¥ mil.			%			¥ mil.		%		¥ mil.		%
For the six months ended September 30, 2002		(626,742	)*		(2.8	)*
		619,580			0.6			44,951		71.0		29,927		116.7		¥20.50
For the six months ended September 30, 2001		(609,541	)*		(2.7	)*									Sumitomo ¥10.80
		615,651			2.7			26,294		-2.2		13,813		-25.0	Mitsui ¥8.78

		(1,175,662	)		(1.2	)*
		1,187,204			1.2			62,635		11.0		23,607		-13.0		¥14.74

(Notes)

(1)

The average number of shares of common stock in issue:


For the six months ended September 30, 2002:		1,459,740,627	shares
For the six months ended September 30, 2001:	Sumitomo	663,000,418	shares
	Mitsui	757,216,064	shares
For the year ended March 31, 2002:		1,115,620,523	shares

	(2)		No accounting change was made during the six months ended September 30, 2002.

	(3)		The percentages presented in the column “Net premiums written”, “Ordinary profit” and “Net income” represent an increase or decrease ratio in comparison with the corresponding figures for the corresponding period of the previous business year.

	*		The figures presented in parenthesis in the column “Net premiums written” represent the amount after deducting the refundable premium of the automobile insurance“Modo-Rich”, which contains a special clause of premium adjustment and refund at maturity, and is provided for the purpose of comparison with other companies. Since the relevant amount of this refundable premium is reserved in the underwriting reserves, it has no impact on ordinary profit nor net income for the six months ended September 30, 2002.

(2)

Dividends


	Interim dividend		Annual dividend
	per share		per share

For the six months ended September 30, 2002		—		—
For the six months ended September 30, 2001		—		—

For the year ended March 31, 2002		—		¥7.50

(3)

Non-consolidated financial conditions


					Shareholders’
					equity as a			Shareholders’ equity
	Total assets		Shareholders’ equity		percentage of total			per share
	(¥ mil.)		(¥ mil.)		assets			(¥)

For the six months ended September 30, 2002		6,197,514		1,141,665		18.4	%		782.19
For the six months ended September 30, 2001		6,806,571		1,200,440		17.6	%	Sumitomo	881.73

								Mitsui	813.30
For the year ended March 31, 2002		6,897,755		1,262,507		18.3	%		864.74

(Notes)

(1)

The number of shares of common stock issued:


As of September 30, 2002:		1,459,566,948	shares
As of September 30, 2001:	Sumitomo	663,000,418	shares
	Mitsui	757,216,064	shares
As of March 31, 2002:		1,459,972,121	shares

(2)

The number of treasury stock:


As of September 30, 2002:	20,327,057	shares
As of March 31, 2002:	19,921,884	shares

Non-consolidated operating results forecast for the Year ending March 31, 2003

Annual dividend per share

Net premiums written

Ordinary profit

Net income

(Year-end dividend)

¥ mil.

For the year ending March 31, 2003

(1,256,000

1,242,000

66,000

32,000

¥7.50

The estimated net income per share for the year ending March 31, 2003: ¥21.92.

Note:

		The foregoing are forward-looking statements based on a number of assumptions and beliefs in light of the information currently available to management and subject to significant risks and uncertainties. Actual financial results may differ materially depending on a number of factors including, adverse economic conditions, currency exchange rate fluctuations, adverse legislative and regulatory developments, delays in new product launches, pricing and insurance product initiatives of competitors, the inability of the Company to market existing and new insurance products effectively, infringements on intellectual property rights of the Company and the adverse outcome of material litigation.

(Note)		Please refer to page 18 of the original Japanese version with respect to the preconditions and other related matters for the operating results forecast stated above.

*		The figure presented in parenthesis in the column “Net premiums written” represents the amount after deducting the refundable premium of the automobile insurance“Modo-Rich”, which contains a special clause of premium adjustment and refund at maturity, and is provided for the purpose of comparison with other companies.

The figures after deducting the refundable premium of the automobile insurance“Modo-Rich", which contains a special clause of premium adjustment and refund at maturity, is presented herein.

Semiannual Income and Loss for the Six Months ended September 30, 2002
in comparison with the corresponding Six Months of the Previous Year


		(All amounts are in millions of yen.)

			Periods

			For the six		For the six				Percentage of		For the year
			months ended		months ended				increase or		ended
Accounts			Sep. 30, 2001		Sep. 30, 2002		Fluctuation		decrease %		Mar. 31, 2002

Direct premiums written (including deposit premiums by policyholders)				821,864		829,210		7,345		0.9		1,578,745
Direct premiums written				664,950		681,459		16,508		2.5		1,282,014

Ordinary Income and Expenses Underwriting income				823,081		811,896		-11,184		-1.4		1,681,851
	Net premiums written			609,541		626,742		17,201		2.8		1,175,662
	Deposit premiums by policyholders			156,914		147,750		-9,163		-5.8		296,730
Underwriting expenses				702,093		680,151		-21,942		-3.1		1,451,341
	Net losses paid			305,614		295,341		-10,273		-3.4		623,216
	Losses adjustment expenses			29,235		29,194		-40		-0.1		56,853
	Commission and brokerage expenses			106,229		109,320		3,090		2.9		207,580
	Deposits to policyholders			241,973		228,626		-13,347		-5.5		523,145

Investment income				55,564		44,267		-11,296		-20.3		102,652
	Interest and dividend income			68,382		59,884		-8,498		-12.4		129,222
	Gain on sale of securities			19,556		15,066		-4,489		-23.0		37,922
Investment expenses				28,550		21,729		-6,821		-23.9		36,422
	Loss on sale of securities			659		1,085		425		64.5		2,845
	Loss on devaluation of securities			21,263		9,913		-11,350		-53.4		27,125

Operating, general and administrative expenses				122,054		109,400		-12,654		-10.4		234,929
Operating, general and administrative expenses for underwriting				114,202		101,998		-12,203		-10.7		219,808
Other ordinary income and expenses				346		67		-279		-80.7		825

Ordinary profit				26,294		44,951		18,657		71.0		62,635
Underwriting gain				6,388		29,371		22,983		359.8		10,228

Extraordinary Income and Losses
	Extraordinary income			13,761		3,287		-10,474		-76.1		12,361
	Extraordinary losses			22,172		3,509		-18,663		-84.2		42,739

	Extraordinary income and losses			-8,410		-221		8,189		—		-30,377

Income before income taxes				17,883		44,729		26,846		150.1		32,257
Income taxes and inhabitants’ taxes				19,740		22,021		2,281		11.6		16,797
Adjustment of income taxes				-15,670		-7,219		8,451		—		-8,148
Net income				13,813		29,927		16,114		116.7		23,607

Unappropriated retained earnings brought forward from the previous year				16,942		21,827		4,885		28.8		16,942
Reversal of reserve for special depreciation				143		—		-143		-100.0		143
Reversal of reserve for losses on overseas investments, etc.				0		—		-0		-100.0		0
Reversal of reserve for advanced depreciation				4		—		-4		-100.0		4
Reserve for advanced depreciation				60		—		-60		-100.0		60
Adjustment due to merger				—		—		—		—		-40
Unappropriated retained earnings at end of semiannual period (fiscal year)				30,842		51,755		20,912		67.8		40,597

Ratio				%		%						%
Net loss ratio				54.9		51.8						57.8
Net operating expense ratio				36.2		33.7						36.4

(Note)		Underwriting profit = Underwriting income – (Underwriting expenses + Operating, general and administrative expenses for underwriting) ± Other income and expenses

		“Other income and expenses” includes the amounts equivalent to income taxes incurred with Compulsory automobile liability insurance, etc.

•		Net loss ratio = (Net claims paid + Loss adjustment expense) / Net premiums written × 100

•		Net operating expense ratio = (Commission and collection expenses + Operating, general and administrative expenses)/Net premiums written × 100

The figures after deducting the refundable premium of the automobile insurance“Modo-Rich", which contains a special clause of premium adjustment and refund at maturity, is presented herein.

Direct premiums written (including deposit premiums by policyholders)



			(All amounts are in millions of yen.)
			Periods

				For the six months ended						For the six months ended						For the year ended
					September 30, 2001						September 30, 2002						March 31, 2002

Accounts				Amount		Increase %		Ratio %		Amount		Increase %		Ratio %		Amount		Increase %		Ratio %

	Fire Insurance				127,994		-9.1		15.6		130,070		1.6		15.7		255,832		-5.5		16.2
	Hull Insurance				28,843		5.1		3.5		30,039		4.1		3.6		58,534		5.3		3.7
	Personal Accident Insurance				180,921		-21.7		22.0		173,797		-3.9		21.0		340,154		-16.0		21.5
	Automobile Insurance				296,702		2.5		36.1		301,006		1.5		36.3		582,516		1.3		36.9
	Compulsory Automobile Liability Insurance				84,113		1.1		10.2		100,954		20.0		12.2		149,910		0.1		9.5
	Other				103,289		2.4		12.6		93,342		-9.6		11.2		191,796		-0.6		12.2

		Total			821,864		-5.9		100.0		829,210		0.9		100.0		1,578,745		-4.2		100.0
Deposit premiums by policyholders (inclusive)					156,914		-27.7		19.1		147,750		-5.8		17.8		296,730		-20.5		18.8

Net premiums written



		(All amounts are in millions of yen.)
		Periods

		For the six months ended						For the six months ended						For the year ended
			September 30, 2001						September 30, 2002						March 31, 2002

Accounts		Amount		Increase %		Ratio %		Amount		Increase %		Ratio %		Amount		Increase %		Ratio %

Fire Insurance			85,566		4.8		14.0		81,330		-5.0		13.0		161,572		-1.6		13.7
Hull Insurance			24,945		9.5		4.1		24,600		-1.4		3.9		49,827		6.1		4.2
Personal Accident Insurance			66,313		-6.6		10.9		65,380		-1.4		10.4		124,225		-5.0		10.6
Automobile Insurance			295,353		2.6		48.5		299,606		1.4		47.8		580,162		1.4		49.4
Compulsory Automobile Liability Insurance			47,461		2.4		7.8		70,625		48.8		11.3		90,513		3.2		7.7
Other			89,899		7.3		14.7		85,198		-5.2		13.6		169,361		6.1		14.4

	Total		609,541		2.7		100.0		626,742		2.8		100.0		1,175,662		1.2		100.0

Net losses paid



		(All amounts are in millions of yen.)
		Periods

		For the six months ended						For the six months								For the year ended
		September 30, 2001						ended September 30, 2002								March 31, 2002

						Net loss						Net loss								Net loss
Accounts		Amount		Increase %		ratio %		Amount		Increase %		ratio %		Fluctuation %		Amount		Increase %		ratio %

Fire Insurance			24,522		-10.0		31.2		23,521		-4.1		31.1		-0.1		49,422		-12.7		32.8
Hull Insurance			15,400		34.6		66.3		10,914		-29.1		47.5		-18.8		28,282		13.5		60.1
Personal Accident Insurance			25,727		-2.1		41.9		24,654		-4.2		41.0		-0.9		51,324		-5.6		44.2
Automobile Insurance			162,661		4.2		60.4		159,234		-2.1		58.8		-1.6		334,919		0.1		63.2
Compulsory Automobile Liability Insurance			28,032		-1.1		69.1		30,004		7.0		49.6		-19.5		56,479		-0.3		74.4
Other			49,270		12.1		58.6		47,011		-4.6		58.2		-0.4		102,788		8.8		63.9

	Total		305,614		4.2		54.9		295,341		-3.4		51.8		-3.1		623,216		0.3		57.8

(Note 1)		Net loss ratio is calculated on the basis of net losses paid adding to loss adjustment expenses.

(Note 2)		The refundable premium of the automobile insurance “Modo-Rich” which contains a special clause of premium adjustment and refund at maturity:


For the six months ended September 30, 2001: For the six months ended September 30, 2002: For the year ended March 31, 2002:		¥6,109 million - -¥7,161 million ¥11,542 million

Semiannual Balance Sheet



				(All amounts are in millions of yen.)
				Periods

				As of				As of						As of
				September 30, 2001				September 30, 2002						March 31, 2002

Accounts				Amount		Ratio %		Amount		Ratio %		Fluctuation		Amount		Ratio %

			(Assets)
Cash on hand and in banks					400,548		5.89		301,681		4.87		-98,866		342,694		4.97
Call loans					—		—		10,000		0.16		10,000		—		—
Monetary claims bought					28,737		0.42		44,058		0.71		15,321		17,774		0.26
Money trust					40,549		0.60		38,411		0.62		-2,138		38,416		0.56
Securities					4,409,796		64.79		4,391,294		70.85		-18,501		4,556,189		66.05
Loans					802,689		11.79		724,973		11.70		-77,716		757,797		10.98
Real property and equipment					329,511		4.84		294,989		4.76		-34,522		306,376		4.44
Other assets					343,104		5.04		356,163		5.75		13,058		334,717		4.85
Customers’ guarantees liability					476,088		6.99		59,641		0.96		-416,446		569,505		8.26
Reserve for bad debts					-24,332		-0.36		-23,685		-0.38		646		-25,707		-0.37
Reserve for losses on investments					-120		-0.00		-13		-0.00		107		-8		-0.00

Total Assets					6,806,571		100.00		6,197,514		100.00		-609,057		6,897,755		100.00

			(Liabilities)
Underwriting funds					4,602,961		67.62		4,518,314		72.90		-84,647		4,512,929		65.43
	Reserve for outstanding claims				384,525				401,167				16,641		405,463
	Underwriting reserves				4,218,435				4,117,147				-101,288		4,107,466
Convertible bonds					104,957		1.54		85,098		1.37		-19,859		85,098		1.23
Other liabilities					172,714		2.54		167,767		2.71		-4,946		150,437		2.18
Accrued retirement benefits					156,637		2.30		159,717		2.58		3,080		163,190		2.37
Accrued bonuses for employees					8,016		0.12		8,022		0.13		6		10,685		0.15
Reserve for loss on sale of loans					2,701		0.04		1,659		0.03		-1,041		1,619		0.02
Reserve for loss on investments in real estate					1,220		0.02		1,220		0.02		—		1,220		0.02
Reserve under the special law					18,106		0.27		20,292		0.33		2,185		20,429		0.30
		Price fluctuation reserve			18,106				20,292				2,185		20,429
Deferred tax liabilities					62,728		0.92		34,114		0.55		-28,614		120,132		1.74
Guarantees outstanding					476,088		6.99		59,641		0.96		-416,446		569,505		8.26

Total Liabilities					5,606,131		82.36		5,055,848		81.58		-550,282		5,635,248		81.70

		(Shareholders’ Equity)
Capital stock					128,473		1.89		128,476		2.07		2		128,476		1.86
Capital surplus					81,989		1.21		81,991		1.32		2		81,991		1.19
	Additional paid-in capital				81,989				81,991				2		81,991
Retained earnings					422,063		6.20		402,871		6.50		-19,191		383,977		5.57
		Legal earned reserve			36,040				38,340				2,300		36,040
		Voluntary reserve			355,179				312,775				-42,404		307,339
		Unappropriated retained earnings			30,842				51,755				20,912		40,597
Unrealized holding gains on securities					567,913		8.34		540,183		8.72		-27,730		679,664		9.85
Treasury stock					—		—		-11,857		-0.19		-11,857		-11,603		-0.17

Total of shareholders’ equity					1,200,440		17.64		1,141,665		18.42		-58,774		1,262,507		18.30

Total Liabilities and Shareholders’ equity					6,806,571		100.00		6,197,514		100.00		-609,057		6,897,755		100.00

Semiannual Statement of Income



				(All amounts are in millions of yen.)
				Periods

				For the six months		For the six months				For the year ended
				ended Sep. 30, 2001		ended Sep. 30, 2002				Mar. 31, 2002
				(April 1, 2001 -		(April 1, 2002 -				(April 1, 2001 -
Accounts				September 30, 2001)		September. 30, 2002)		Fluctuation		March 31 2002)

Ordinary Income and Expenses
Ordinary Income					887,152		850,856		-36,295		1,794,599
	Underwriting income				829,191		804,735		-24,456		1,687,961
		Net premiums written			615,651		619,580		3,929		1,187,204
		Deposit premiums by policyholders			156,914		147,750		-9,163		296,730
		Investment in income on deposit premiums, etc.			34,824		33,062		-1,761		71,226
		Decrease in reserve for outstanding claims			—		4,296		4,296		—
		Decrease in underwriting reserves			21,786		—		-21,786		132,243
	Investment income				55,564		44,267		-11,296		102,652
		Interest and dividends income			68,382		59,884		-8,498		129,222
		Gain on sale of securities			19,556		15,066		-4,489		37,922
		Transfer of investment income on deposit premiums, etc.			-34,824		-33,062		1,761		-71,226
	Other Ordinary Income				2,396		1,853		-543		3,986

Ordinary Expense					860,858		805,905		-54,953		1,731,964
	Underwriting expenses				708,203		672,989		-35,213		1,457,451
		Net losses paid			305,614		295,341		-10,273		623,216
		Losses adjustment expenses			29,235		29,194		-40		56,853
		Commission and brokerage expenses			106,229		109,320		3,090		207,580
		Deposits to policyholders			241,973		228,626		-13,347		523,145
		Increase in reserve for outstanding claims			3,095		—		-3,095		24,759
		Increase in underwriting reserves			20,799		9,680		-11,118		20,799
	Investment expenses				28,550		21,729		-6,821		36,422
		Loss on sale of securities			659		1,085		425		2,845
		Loss on devaluation of securities			21,263		9,913		-11,350		27,125
	Operating, general and administrative expenses				122,054		109,400		-12,654		234,929
	Other ordinary expenses				2,049		1,786		-263		3,160

Ordinary profit					26,294		44,951		18,657		62,635

Extraordinary Income and Losses
	Extraordinary income				13,761		3,287		-10,474		12,361
		Decrease in reserve under the special law			1,859		137		-1,722		1,859
			Price fluctuation reserve		1,859		137		-1,722		1,859
		Other extraordinary income			11,902		3,150		-8,752		10,502
	Extraordinary losses				22,172		3,509		-18,663		42,739
		Increase in reserve under the special law			389		—		-389		2,712
			Price fluctuation reserve		389		—		-389		2,712
		Other extraordinary loss			21,783		3,509		-18,274		40,026

Income before income taxes					17,883		44,729		26,846		32,257
Income taxes and inhabitants’ taxes					19,740		22,021		2,281		16,797
Adjustment of income taxes					-15,670		-7,219		8,451		-8,148
Net income					13,813		29,927		16,114		23,607

Unappropriated retained earnings brought forward from the previous year					16,942		21,827		4,885		16,942
Reversal of reserve for special depreciation					143		—		-143		143
Reversal of reserve for losses on overseas investments, etc.					0		—		-0		0
Reversal of reserve for advanced depreciation					4		—		-4		4
Reserve for advanced depreciation					60		—		-60		60
Adjustment due to merger					—		—		—		-40
Unappropriated retained earnings at end of semiannual period (fiscal year)					30,842		51,755		20,912		40,597

Significant Accounting Policies for Semiannual Non-Consolidated Financial Statements

Standard and method of valuation for securities are as follows:

	(1)		Trading securities are valued at market value and cost of sales is calculated using the moving average method.

	(2)		The held-to-maturity securities are valued at amortized cost.

	(3)		Stocks of subsidiaries and affiliate companies are valued at the cost using the moving average method.

	(4)		Marketable securities classified as other securities are valued at market value as of the semiannual balance sheet date. Net unrealized holding gains or losses are reported as a separate component of shareholders’ equity, and cost of sales is calculated using the moving average method.

	(5)		Non-marketable securities classified as other securities are valued at cost using the moving average method or amortized cost method.

	(6)		Securities managed as trust assets and included in the money trust that is independently managed mainly for the purpose of securities investment, is valued at the market value.

2.		Standard and method of valuation for derivative transactions:

		Derivative transactions are valued at the market value. Provided, however, that derivative transactions that fulfill requirements for transfer treatments permitted for foreign forward exchanges, etc. are accounted for using treatments and that fulfill requirements for exceptional treatments permitted for interest rate swaps are accounted for using exceptional treatments.

3.		Method of valuation of real property and equipment:

		Real property and equipment are mainly depreciated at the declining balance method. Provided, however, that buildings (excluding equipment attached thereto) which were acquired on and after April 1, 1998 are depreciated by the straight-line method.

4.		Basis for significant reserves:

(1)		Reserve for bad debts

		The reserve for bad debts is provided for possible losses on bad debts at an amount determined pursuant to the standards for self-appraisal of assets and the standards for depreciation and provisions of reserves as follows:

		With respect to receivables from obligors who were known to have suffered from collapse of management for whatever reason, legally or as a matter of form such as bankruptcy, special liquidation or suspension of any transaction at the note exchanges or who fell substantially into collapse of management, reserve is provided for by an amount equivalent to the balance obtained by deducting an expected amount to be realized by the enforcement of mortgage and an amount possibly collected by the enforcement of a guarantee from the

		amount of receivables.

		With respect to receivables from obligors who were deemed highly possible to fall into collapse of management, reserve is provided for by an amount deemed necessary upon overall judgment of their liquidity out of the amount equivalent to the balance obtained by deducting an expected amount to be realized by the enforcement of mortgage and the amount possibly collected by the enforcement of a guarantee from the amount of receivables.

		With respect to receivables other than those stated above, reserve is provided for by the amount obtained by multiplying the amount of receivables by a bad debt rate calculated based on the amount of written-off receivables in the past specified period.

		The division controlling the respective assets has carried out the appraisal of all assets based on the standards for self-appraisal of assets, the business inspection division independent of the relevant division has inspected the results of the above appraisal and the reserves stated above have been provided for by the respective amounts based on the results of the above appraisal.

(2)		Reserve for losses on investments

		To provide for possible future losses on securities, the amount deemed necessary based on the Company’s self-appraisal of assets is provided to reserve for investment loss.

(3)		Accrued retirement benefits

		Accrued retirement benefits for employees provide for an amount recognized to be paid as of the end of the semiannual period based on the estimated amount of retirement benefits and the market value of the pension plan assets at the end of the subject semiannual period.

		Unrecognized prior service cost is amortized using the straight-line method over the average remaining years of service of employees.

		Unrecognized actuarial gains and losses are amortized from the next fiscal year using the straight-line method over periods within the estimated average remaining service years of employees.

(4)		Accrued bonuses for employees

		Accrued bonuses for employees are provided on the basis of an estimated amount payable at the end of semiannual period.

(5)		Reserve for loss on sale of loans

		The reserve for loss on sale of loans is made in an estimated amount of loss at the end of the semiannual period to provide for possible loss that might be incurred in the future due to a drop in the collateral value of loans sold to Cooperative Credit Purchasing Company, Ltd.

(6)		Reserve for loss on investments in real estate

		The reserve for loss on investments is made in an estimated amount of loss at the end of the semiannual period, which is prepared to be paid for possible losses incurred in connection with transactions of real estate investment.

(7)		Price fluctuation reserve

		The price fluctuation reserve is made to provide for losses arising out of fluctuations in prices of shares, etc. under the provisions of Article 115 of the

		Insurance Business Law.

5.		Translation standards for assets and liabilities denominated in foreign currencies:

		Assets and liabilities denominated in foreign currencies are translated into Japanese yen at the rate of the spot rate exchange as of the semiannual balance sheet date. Unrealized translation gain or loss is stated as income or loss.

6.		Accounting for consumption tax, etc.:

		Consumption tax, etc. is accounted for under the tax exclusive method except that consumption tax relating to loss adjustment expense, operating, general and administrative expenses is accounted for under the tax inclusive method. Nondeductible consumption tax in respect of assets is included in other assets payments and amortized in equal installments over a period of five years.

7.		Accounting for leases:

		Finance leases, except for those in which ownership is deemed to be transferred to the lessee, are accounted for as operating leases, that is, the rental of real property.

8.		Hedge accounting:

		Deferred hedges are applied to share option transactions which are to be entered into in order to hedge risks arising from share price fluctuations in connection with holding of shares. Exceptional treatments of deferred hedges or interest rate swaps are applied to the interest rate swap transactions which are to be entered into in order to hedge risks arising from cash flow fluctuations of loans and bonds due to fluctuations in interest rates.

		The effectiveness of hedging is judged every six-month period based on comparisons between hypothetical total of market fluctuations or cash flow fluctuations concerned with the hedging and total market fluctuations and cash flow fluctuations of hedging vehicles from the start of hedging until the effectiveness evaluation. Provided, however, that hedging transactions in which it is apparent that a high correlation is recognized between a hedging and the hedging vehicle and hedging transactions that fulfill requirements for exceptional treatments permitted for interest rate swaps, are excluded from hedging effectiveness evaluation.

9.		Matters relating to tax-effect accounting:

		Amounts of tax payment and adjustment of income taxes for the semiannual period is calculated at the amount to be paid during the six months ended September 30, 2002, on the basis of reserve and reversal of reserve for losses on overseas investments, reserve for special depreciation and reserve for advanced depreciation and through the method of appropriation of profits scheduled during the business year under review.

Additional Information

1.		Credit derivative transactions were stated according to guaranty of liabilities until the year ended March 31, 2002. However, it has been possible to calculate the reasonable value for the credit derivative transactions from the six months ended September 30, 2002, and such value is stated in the accompanying semiannual balance sheet. As a result, ordinary profit and net income for the six months ended September 30, 2002 decreased by ¥7,470 million, compared with those using the previous calculation method. Further, customers’ guarantees liability and guarantees outstanding decreased by ¥509,782 million, respectively.

2.		“Accounting for treasury stock and reversal of legal reserve” (Corporate Accounting Standards No. 1) has been applied for the six months ended September 30, 2002. This adoption had no impact on income and loss of the six months ended September 30, 2002.

		Due to amendments to the Rules for Semiannual Financial Statements, the category of shareholders’ equity of the semiannual financial statements for the six months ended September 30, 2002 has been prepared in accordance with the Rules for the Semiannual Financial Statements, as amended.

		Accordingly, treasury stock amounting to ¥13 million, which had previously included in the assets for the six months ended September 30, 2001, has been accounted for as deductions from shareholders’ equity for the six months ended September 30, 2002.

Notes

(Non-consolidated Balance Sheets)

1.		The accumulated amount of depreciation of real property and equipment is ¥274,404 million and the advanced depreciation of real property and equipment is ¥23,043 million.

2.		Temporary payment of consumption tax, etc. and consumption tax, etc. temporarily received are offset and included in other assets.

3.		Assets pledged as collateral comprise securities in an amount of ¥7,530 million.

4.	(1)	Among loans receivables, receivables from obligors who are under collapse of management are ¥59 million and receivables in delay are ¥14,664 million. Receivables from obligors who are under collapse of management mean loans receivables which fall under any of the events as listed in Article 96, Section 1, Item 3 (i) through (v) or as stipulated in Article 96, Section 1, Item 4 of the Enforcement Regulations of the Corporate Income Tax Law (Government Ordinance No. 97 of 1965) among loans receivables with respect to which accrued interest is not stated because it is impossible to expect collection or payment of principal or interest due to the fact that the payment of principal or interest has not been rendered during a substantial period or for any other reasons.

		Receivables in delay mean loans receivables other than those from obligors who are under collapse of management and those with respect to which

			interest payment has been exempted at its discretion for the purpose of reconstructing or assisting in the obligors.

	(2)		Among loans receivables, receivables in arrears for three months or more amounts to ¥860 million.

			Receivables in arrears for three months or more mean loans receivables concerning which payment of principal or interest is in arrears for three months or more from the day next following the stated payment date and which do not fall under receivables from obligors who are under collapse of management or receivables in arrears.

	(3)		Among loans receivables, receivables to which eased loan conditions were granted amount to ¥19,234 million.

			Receivables to which eased loan conditions were granted mean loans receivables concerning which such arrangements as will be favorable to obligors including reduction or exemption of interest, postponement of interest payment or grant of grace period for the principal, abandonment of debts or others have been made, and which do not fall under receivables from obligors who are under collapse of management, receivables in delay or receivables in arrears for three months or more.

	(4)		Total of receivables from obligors who are under collapse of management, receivables in delay, receivables in arrears for three months or more, and receivables to which eased conditions were granted amounts to ¥34,799 million.

5.		Securities include the loan in the aggregate amount of ¥90,662 million by the agreement of loan for consumption.

6.		The Company has extended guarantees in the amount of ¥16,332 million and ¥34,470 million, respectively, in connection with the insurance underwritten by Mitsui Sumitomo Insurance Company (Europe) Limited and MSI Corporate Capital Limited, subsidiaries of the Company.

7.		The outstanding loan commitments amounts to ¥530 million.

(Statement of Income)

1.		Extraordinary income is comprised of gain on disposal of real property and equipment of ¥2,976 million and reversal of reserve for bad debts of ¥173 million.

2.		“Other” of Extraordinary losses is comprised of costs incurred with the merger of ¥1,713 million, loss on devaluation of buildings of ¥1,013 million due to material drops in market value of buildings and loss on disposal of real property and equipment of ¥781 million.

Lease Transactions

For the six months ended
September 30, 2001
(April 1, 2001 — September 30, 2001)

		Finance lease transactions except for those agreements which stipulate the transfer of ownership of the leased assets to the lessee

1.		The pro forma amounts of the acquisition costs, accumulated depreciation and net book value of the leased assets as of September 30, 2001 were as follows:


		(Millions of yen)
Acquisition costs
Accumulated depreciation
Net book value
Equipment
5,479
4,236
1,243

		The acquisition costs shown above represent the aggregate future minimum lease payments because such payments were immaterial to the net book value of real property and equipment at September 30, 2001.

2.		Future minimum lease payments outstanding as of September 30, 2001 are summarized as follows:


Due in one year or less		¥792 million
Due after one year		451 million

Total		¥1,243 million

		The future minimum lease payments shown above represent the total lease payments including the interest portion thereon because such payments were immaterial to the net book value of real property and equipment at September 30, 2001.

3.		Lease payments and depreciation of leased assets are shown below:


Lease payments		¥559 million
Depreciation		¥559 million

4.		Method of calculation of depreciation

		Depreciation of leased assets is calculated by the straight-line method over the respective lease terms assuming a residual value of zero.

For the six months ended
September 30, 2002
(April 1, 2002 — September 30, 2002)

		Finance lease transactions except for those agreements which stipulate the transfer of ownership of the leased assets to the lessee

1.		The pro forma amounts of the acquisition costs, accumulated depreciation and net book value of the leased assets as of September 30, 2002 were as follows:


		(Millions of yen)
Acquisition costs
Accumulated depreciation
Net book value
Equipment
2,734
2,311
422

(Note) Same as that for the six months ended September 30, 2001.

Future minimum lease payments outstanding as of September 30, 2002 are summarized as follows:


Due in one year or less		¥302 million
Due after one year		120 million

Total		¥422 million

Same as that for the six months ended September 30, 2001.

Lease payments and depreciation of leased assets are shown below:


Lease payments		¥291 million
Depreciation		¥291 million

4.		Method of calculation of depreciation

		Same as that for the six months ended September 30, 2001.

For the year ended March 31, 2002
(April 1, 2001 — March 31, 2002)

		Finance lease transactions except for those agreements which stipulate the transfer of ownership of the leased assets to the lessee

1.		The pro forma amounts of the acquisition costs, accumulated depreciation and net book value of the leased assets as of March 31, 2002 were as follows:


		(Millions of yen)
Acquisition costs
Accumulated depreciation
Net book value
Equipment
2,982
2,266
715

The acquisition costs shown above represent the aggregate future minimum lease payments because such payments were immaterial to the net book value of real property and equipment at March 31, 2002.

Future minimum lease payments outstanding as of March 31, 2002 are summarized as follows:


Due in one year or less		¥473 million
Due after one year		242 million

Total		¥715 million

		The future minimum lease payments shown above represent the total lease payments including the interest portion thereon because such payments were immaterial to the net book value of real property and equipment at March 31, 2002.

3.		Lease payments and depreciation of leased assets are shown below:


Lease payments		¥1,424 million
Depreciation		¥1,424 million

4.		Method of calculation of depreciation

		Same as that for the six months ended September 30, 2001.

Securities

Information on held-to-maturity debt securities for which market value is available


		(Millions of yen)
		As of September 30, 2001						As of September 30, 2002						As of March 31, 2002

		Carrying		Market		Unrealized		Carrying		Market		Unrealized			Carrying		Market		Unrealized
Types of securities		value		value		gain (loss)		value		value		gain (loss)			value		value		gain (loss)

Foreign securities			1,136		1,478		341		1,136		1,501		364			1,136		1,645		508
	Total		1,136		1,478		341		1,136		1,501		364			1,136		1,645		508

2.		Stocks of subsidiaries and affiliate companies for which market value is available: Not applicable.

3.		Information on other securities for which market value is available


		(Millions of yen)
		As of September 30, 2001						As of September 30, 2002						As of March 31, 2002

		Acquisition		Carrying		Unrealized		Acquisition		Carrying		Unrealized		Acquisition		Carrying		Unrealized
Types of securities		costs		value		gain (loss)		costs		value		gain (loss)		costs		value		gain (loss)

Bonds and debentures			1,666,897		1,753,184		86,286		1,735,078		1,806,999		71,920		1,698,155		1,758,798		60,643
Stocks			965,726		1,715,054		749,328		916,810		1,607,429		690,618		933,254		1,840,630		907,375
Foreign securities			667,045		721,303		54,257		663,521		746,091		82,569		650,296		742,902		92,606
Others			34,042		33,159		-882		32,265		31,515		- 749		28,195		28,518		323

	Total		3,333,711		4,222,700		888,989		3,347,676		4,192,035		844,358		3,309,902		4,370,850		1,060,948


As of September 30, 2001	As of September 30, 2002	As of March 31, 2002

The Company recognized impairment losses of ¥15,619 million for other securities for which market value is available. Impairment losses have been recognized in the case of all securities declining more than 50% in market value compared with acquisition costs. Impairment losses have been recognized in the case of securities declining not less than 30% but less than 50% in market value, only those other than in the case of perspective on recovery of market value is recognized	The Company recognized impairment losses of ¥8,581 million for other securities for which market value is available. Impairment losses have been recognized in the case of all securities declining more than 50% in market value compared with acquisition costs. Impairment losses have been recognized in the case of securities declining not less than 30% but less than 50% in market value, only those other than in the case of perspective on recovery of market value is recognized	The Company recognized impairment losses of ¥21,490 million for other securities for which market value is available. Impairment losses have been recognized in the case of all securities declining more than 50% in market value compared with acquisition costs. Impairment losses have been recognized in the case of securities declining not less than 30% but less than 50% in market value, only those other than in the case of perspective on recovery of market value is recognized.

Information on and amount of securities which are not valued at market value:

As of September 30, 2001

(1)		Held-to-maturity debt securities

		Transferable deposits of ¥677 million, which are included in cash and bank deposits, and commercial paper of ¥21,030 million, which is included in monetary claims bought on the semiannual balance sheet, are accounted for as the held-to-maturity debt securities.

(2)		Stocks of subsidiaries and affiliate companies


Stocks:		¥35,454 million
Foreign securities:		¥58,163 million
Others:		¥2,161 million

(3)

Other securities


Bonds and debentures:		¥6,908 million
Stocks:		¥38,085 million
Foreign securities:		¥41,152 million
Others:		¥7,632 million

		(Note)

		Commercial papers, etc., which are treated as monetary claims bought on the semiannual balance sheet, are included in “Other”.

As of September 30, 2002

(1)		Held-to-maturity debt securities

		Transferable deposits of ¥47,121 million, which are included in cash and bank deposits, and commercial paper of ¥41,285 million, which is included in monetary claims bought on the semiannual balance sheet, are accounted for as the held-to-maturity debt securities.

(2)		Stocks of subsidiaries and affiliate companies


Stocks:		¥39,377 million
Foreign securities:		¥70,490 million
Others:		¥3,095 million

(3)

Other securities


Bonds and debentures:		¥4,599 million
Stocks:		¥41,308 million
Foreign securities:		¥36,216 million
Others:		¥4,253 million

		(Note)

		Beneficiary rights for claimable asset fund, which are treated as monetary claims bought on the semiannual balance sheet, are included in “Other”.

As of March 31, 2002

(1)		Held-to-maturity debt securities

		Transferable deposits of ¥33,145 million, which are included in cash and bank deposits, and commercial paper of ¥14,808 million, which is included in monetary claims bought on the semiannual balance sheet, are accounted for as the held-to-maturity debt securities.

(2)		Stocks of subsidiaries and affiliate companies


Stocks:		¥36,457 million
Foreign securities:		¥56,946 million
Others:		¥3,338 million

(3)

Other securities


Bonds and debentures:		¥4,599 million
Stocks:		¥41,975 million
Foreign securities:		¥38,026 million
Others:		¥4,135 million

		(Note)

		Beneficiary rights for claimable asset fund, which are treated as monetary claims bought on the balance sheet, are included in “Other”.

Money Trust

1.		Held-to-maturity money trusts:

		Not applicable.

2.		Money trusts other than those that are intended for investment and held-to-maturity:


As of September 30, 2001	As of September 30, 2002	As of March 31, 2002

There are no monetary trusts to be solely invested which are valued by the market value. The monetary trust intended for joint investment represented as the acquisition costs in the semiannual balance sheet is ¥76 million.	There are no monetary trusts to be solely invested which are valued by the market value. The monetary trust intended for joint investment represented as the acquisition costs in the semiannual balance sheet is ¥97 million.	There are no monetary trusts to be solely invested which are valued by the market value. The monetary trust intended for joint investment represented as the acquisition costs in the balance sheet is ¥1,023 million.

Contract Amount, Market Value and Unrealized Gain(Loss) of Derivative Transactions


					(Millions of Yen)
					As of September 30, 2001							As of September 30, 2002							As of March 31, 2002

Types of					Contract			Market		Unrealized		Contract			Market		Unrealized		Contract			Market		Unrealized
Securities	Types of contracts				Amount			Value		Gain/(Loss)		Amount			Value		Gain/(Loss)		Amount			Value		Gain/(Loss)

Currency			Forward exchange contracts
				Sales contracts:		30,670			30,839		-168		26,855			27,251		-396		31,849			32,467		-617
				Purchased contracts:		1,019			1,100		80		3,678			3,676		-2		7,002			7,009		7
			Currency option contracts
				Sales contracts:		—			—		—		3,492			1		18		3,021			0		1
						(—	)						(19	)						(2	)
				Purchased contracts:		2,346			83		-15		3,472			2		-34		3,011			159		56
						(99)							(36	)						(102	)

Interest			Interest option contracts
				Sales contracts:		9,420			70		155		19,720			102		148		8,910			69		156
						(225	)						(251	)						(225	)
				Purchased contracts:		3,000			76		-120		13,500			101		-122		3,000			73		-123
						(196	)						(223	)						(196	)
			Interest swap contracts			65,153			220		220		52,655			192		192		54,166			309		309

Stock			Stock price index futures
				Sales contracts:		—			—		—		—			—		—		1,158			1,110		48
			Stock price index option contracts
				Sales contracts:		—			—		—		450			6		4		3,050			7		44
						(—	)						(10	)						(51	)
				Purchased contracts:		—			—		—		—			—		—		2,700			42		-2
						(—	)						(—	)						(45	)
			Stock price swap contracts			1,840			-94		-94		—			—		—		—			—		—

Bonds		Government bond futures
				Sales contracts:		—			—		—		280			280		-0		—			—		—
			Government bond over-the-counter option contracts
				Sales contracts:		—			—		—		9,333			3		14		7,392			1		16
						(—	)						(17	)						(18	)

Credit		Credit derivatives
				Sales contracts:		—			—		—		533,076			-7,772		-7,772		—			—		—
				Purchased contracts:		—			—		—		23,294			77		77		—			—		—

Other	Weather derivative contracts
				Sales contracts:		65			28		59		30			20		3		9			16		9
						(87	)						(24	)						(26	)
				Purchased contracts:		30			6		-26		1			2		0		6			14		-3
						(33	)						(2	)						(17	)
				Other:		—			152		152		—			408		408		—			614		614
			Natural disaster derivative contracts
				Sales contracts:		130			2		2		170			7		2		190			2		5
						(5	)						(10	)						(7	)
			Economic index derivative contracts
				Sales contracts:		0			21		—		0			—		21		0			7		14
						(21	)						(21	)						(21	)

			Total			113,675			32,507		246		690,010			24,365		-7,436		125,466			41,905		537

(Notes)

1. Figures in parentheses of the above list represent the option premiums.

2. Any derivative transactions, to which the hedge accounting applied, are excluded.

Solvency Margin Ratio


		(Millions of Yen)

		For the six months						For the six months			For the six months
		ended Sep. 30, 2001						ended Sep. 30, 2002			ended March 30, 2002

		Sumitomo			Mitsui			The Company			The Company

(A) Total amount of solvency margins			1,095,106			1,114,811			2,146,534			2,297,119
	Total of shareholders’ equity (excluding predetermined outflows from the Company, deferred assets and unrecognized gain or loss on other securities)		309,185			323,292			601,440			571,808
	Reserve for price fluctuation		8,143			9,963			20,292			20,429
	Reserve for extraordinary risks		244,816			218,638			484,427			462,534
	General reserve for bad debts		2,186			8,162			11,170			10,058
	Unrecognized gain or loss on other securities (before tax effect deduction)		387,928			412,010			760,822			957,274
	Unrecognized gain or loss on land		3,591			35,378			68,125			87,151
	Method, etc. of procurement of liability capitals		—			—			—			—
	Item of deduction		—			1,170			5,010			1,170
	Other		109,254			108,535			205,266			189,032
(B) Total amount of risks R [Square Root]² + (R₂ + R₃)² + R₄ + R₅			188,253			255,707			433,088			429,681
	General underwriting risks (R₁)		31,929			35,346			68,624			68,579
	Expected interest rate risks (R₂)		3,449			2,969			5,781			6,017
	Asset management risks (R₃)		118,155			135,877			253,405			266,251
	Operation risks (R₄)		4,236			5,620			9,662			9,603
	Great disaster risks (R₅)		58,290			106,811			155,307			139,304
(B) Solvency margin ratio [(A)/{(B)x1/2}] x 100			1,163.4	%		871.9	%		991.3	%		1,069.2	%

(Note)

The amounts and figures indicated above are calculated in accordance with Articles 86 and 87 of the Enforcement Regulations for the Insurance Business Law and with Ministry of Finance Notification No.50 of 1996.

•		While a non-life insurance company has provided for reserves in anticipation of payment of insurance money upon occurrence of insurable contingencies and repayment of deposits to policyholders, etc., it is also required to maintain sufficient solvency in the event of an occurrence of any risk beyond normal expectations, such as disasters of great magnitudes and substantial decline in prices of the assets held by it.

•		Solvency margin ratio (i.e., (C) in the above table) is calculated under the Insurance Business Law, etc. as an indicator representing a ratio of payment surplus, such as capital and reserves, held by a non-life insurance company (i.e., total solvency margins indicated as (A) above) to total amount of risks representing those risks beyond normal expectations (i.e., (B) in the above table).

•		Risks beyond normal expectations is indicated as a total amount of such risks as listed below:


(1)	Underwriting risks: (General underwriting risks)	any such risks involved in insurable contingencies as may occur beyond normal expectations (excluding risks for disasters of great magnitude)
(2)	Risks of expected interest rate: (Expected interest rate risks)	any such risks as may occur due to the actual investment yield on accumulation insurance being below the yield expected at the time of the calculation of the premiums thereon.
(3)	Asset management risks: (Asset management risks)	any such risks as may occur as a result of fluctuating the prices of securities and other assets held being more than normal expectations.
(4)	Operation risks (Operation risks)	any risks other than those referred to in (1) to (3) and (5) above that may occur in the operation of business beyond normal expectations.
(5)	Risks for great disaster (Great disaster risks)	Any risks involved in disasters of great magnitudes (such as the Great Kanto Earthquake, etc.) as may occur beyond normal expectations.

•		“Surplus payment such as capital and reserves held by a non-life insurance company” (i.e., total solvency margins) means a total of capital, reserves (such as reserve for price fluctuations and for extraordinary risks) and part of hidden profit of land.

•		The solvency margin ratio is one of the objective indicators used by the regulatory authorities in their overseeing insurance companies, and if the value of such ratio is 200% or above, the insurance company is judged as adequate in terms of its conditions to meet the ability to pay insurance money, etc.

Information of Loans Receivable under Risk Control


		(Millions of Yen)
		(A)			(B)			Fluctuation			(C)			Fluctuation
		As of Sep. 30, 2001			As of Sep. 30, 2002			(B)-(A)			As of Mar. 31, 2002			(B)-(C)

Receivables from obligors who are under collapse of management			687			59			-627			5,501			-5,441

Receivables in delay			18,621			14,644			-3,976			14,743			-99

Receivables in arrears for three months or more			601			860			258			742			117

Receivables to which eased loan conditions were granted			18,080			19,234			1,154			12,915			6,319

	Total		37,991			34,799			-3,191			33,903			896

Ratio to loan balance			4.7	%		4.8	%		0.1	%		4.5	%		0.3	%

Loan balance (for reference)			802,689			724,973			-77,716			757,797			-32,823

Note: Each of the receivables means as follows:

(1)		Receivables from obligors who are under collapse of management:

		Receivables from obligors who are under collapse of management mean loans receivables which fall under any of the events as listed in Article 96, Section 1, Item 3 (i) through (v) or as stipulated in Article 96, Section 1, Item 4 of the Enforcement Regulations of the Corporate Income Tax Law (Government Ordinance No. 97 of 1965) among loans receivables with respect to which accrued interest is not stated because it is impossible to expect collection or payment of principal or interest due to the fact that the payment of principal or interest has not been rendered during a substantial period or for any other reasons.

(2)		Receivables in delay:

		Receivables in delay mean loans receivable other than those from obligors who are under collapse of management and those with respect to which interest payment has been exempted at the discretion of the obligors for the purpose of reconstructing or assisting in the obligors.

(3)		Receivables in arrears for three months or more:

		Receivables in arrears for three months or more mean loans receivable concerning which payment of principal or interest is in arrears for three months or more from the day next following the stated payment date and which do not fall under receivables from obligors who are under collapse of management or receivables in arrears.

(4)		Receivables to which eased loan conditions were granted:

		Receivables to which eased loan conditions were granted mean loans receivable concerning which such arrangements as will be favorable to obligors including reduction or exemption of interest, postponement of interest payment or grant of grace period for the principal, abandonment of debts or others have been made, and which do not fall under receivables from obligors who are under collapse of management, receivables in delay or receivables in arrears for three months or more.

The figures not deducting the refundable premium of the automobile insurance“Modo-Rich", which contains a special clause of premium adjustment and refund at maturity, is presented herein.

Semiannual Income and Loss for the Six Months ended September 30, 2002
in comparison with the corresponding Six Months of the Previous Year


		(All amounts are in millions of yen.)
		Periods

		For the six months		For the six months				Percentage of
		ended		ended				increase or		For the year ended
Accounts		Sep. 30, 2001		Sep. 30, 2002		Fluctuation		decrease %		Mar. 31, 2002

		(All amounts are in millions of yen.)
Direct premiums written (including deposit premiums by policyholders)			827,974		822,048		-5,925		-0.7		1,590,288
Direct premiums written			671,060		674,297		3,237		0.5		1,293,557

Ordinary Income and Expenses
Underwriting income			829,191		804,735		-24,456		-2.9		1,687,961
	Net premiums written		615,651		619,580		3,929		0.6		1,187,204
	Deposit premiums by policyholders		156,914		147,750		-9,163		-5.8		296,730
Underwriting expenses			708,203		672,989		-35,213		-5.0		1,457,451
	Net losses paid		305,614		295,341		-10,273		-3.4		623,216
	Losses adjustment expenses		29,235		29,194		-40		-0.1		56,853
	Commission and brokerage expenses		106,229		109,320		3,090		2.9		207,580
	Deposits to policyholders		241,973		228,626		-13,347		-5.5		523,145

Investment income			55,564		44,267		-11,296		-20.3		102,652
	Interest and dividend income		68,382		59,884		-8,498		-12.4		129,222
	Gain on sale of securities		19,556		15,066		-4,489		-23.0		37,922
Investment expenses			28,550		21,729		-6,821		-23.9		36,422
	Loss on sale of securities		659		1,085		425		64.5		2,845
	Loss on devaluation of securities		21,263		9,913		-11,350		-53.4		27,125

Operating, general and administrative expenses			122,054		109,400		-12,654		-10.4		234,929
Operating, general and administrative expenses for underwriting			114,202		101,998		-12,203		-10.7		219,808

Other ordinary income and expenses			346		67		-279		-80.7		825

Ordinary profit			26,294		44,951		18,657		71.0		62,635
Underwriting gain			6,388		29,371		22,983		359.8		10,228

Extraordinary Income and Losses
	Extraordinary income		13,761		3,287		-10,474		-76.1		12,361
	Extraordinary losses		22,172		3,509		-18,663		-84.2		42,739

	Extraordinary income and losses		-8,410		-221		8,189		—		-30,377

Income before income taxes			17,883		44,729		26,846		150.1		32,257
Income taxes and inhabitants’ taxes			19,740		22,021		2,281		11.6		16,797
Adjustment of income taxes			-15,670		-7,219		8,451		—		-8,148
Net income			13,813		29,927		16,114		116.7		23,607

Unappropriated retained earnings brought forward from the previous year			16,942		21,827		4,885		28.8		16,942
Reversal of reserve for special depreciation			143		—		-143		-100.0		143
Reversal of reserve for losses on overseas investments, etc.			0		—		-0		-100.0		0
Reversal of reserve for advanced depreciation			4		—		-4		-100.0		4
Reserve for advanced depreciation			60		—		-60		-100.0		60
Adjustment due to merger			—		—		—		—		-40
Unappropriated retained earnings at end of year			30,842		51,755		20,912		67.8		40,597

Raito			%		%						%
Net loss ratio			54.4		52.4						57.3
Net operating expense ratio			35.8		34.1						36.0

	(Note)		Underwriting profit = Underwriting income – (Underwriting expenses + Operating, general and administrative expenses for underwriting)± Other income and expenses

			“Other income and expenses” includes the amounts equivalent to income taxes incurred with Compulsory automobile liability insurance, etc.

	•		Net loss ratio = (Net claims paid + Loss adjustment expense) / Net premiums written X 100

	•		Net operating expense ratio = (Commission and collection expenses + Operating, general and administrative expenses) / Net premiums written X 100

The figures after deducting the refundable premium of the automobile insurance“Modo-Rich", which contains a special clause of premium adjustment and refund at maturity, is presented herein.

Direct premiums written (including deposit premiums by policyholders)


		(All amounts are in millions of yen.)
			Periods

			For the six months ended						For the six months ended						For the year ended
Accounts			September 30, 2001						September 30, 2002						March 31, 2002

			Amount		Increase		Ratio		Amount		Increase		Ratio		Amount		Increase		Ratio

					%		%				%		%				%		%
	Fire Insurance			127,994		-9.1		15.4		130,070		1.6		15.8		255,832		-5.5		16.1
	Hull Insurance			28,843		5.1		3.5		30,039		4.1		3.7		58,534		5.3		3.7
	Personal Accident Insurance			180,921		-21.7		21.8		173,797		-3.9		21.1		340,154		-16.0		21.4
	Automobile Insurance			302,812		2.5		36.6		293,844		-3.0		35.7		594,059		1.2		37.3
	Compulsory Automobile
	Liability Insurance			84,113		1.1		10.2		100,954		20.0		12.3		149,910		0.1		9.4
	Other			103,289		2.4		12.5		93,342		-9.6		11.4		191,796		-0.6		12.1

	Total			827,974		-5.8		100.0		822,048		-0.7		100.0		1,590,288		-4.2		100.0
Deposit premiums by policyholders (inclusive)				156,914		-27.7		19.0		147,750		-5.8		18.0		296,730		-20.5		18.7

Net premiums written


		(All amounts are in millions of yen.)
				Periods

		For the six months ended							For the six months ended						For the year ended
Accounts		September 30, 2001							September 30, 2002						March 31, 2002

		Amount			Increase		Ratio		Amount		Increase		Ratio		Amount		Increase		Ratio

					%		%				%		%				%		%
	Fire Insurance		85,566			4.8		13.9		81,330		-5.0		13.1		161,572		-1.6		13.6
	Hull Insurance		24,945			9.5		4.0		24,600		-1.4		4.0		49,827		6.1		4.2
	Personal Accident Insurance		66,313			-6.6		10.8		65,380		-1.4		10.6		124,225		-5.0		10.5
	Automobile Insurance		301,463			2.6		49.0		292,445		-3.0		47.2		591,705		1.3		49.8
	Compulsory Automobile
	Liability Insurance		47,461			2.4		7.7		70,625		48.8		11.4		90,513		3.2		7.6
	Other		89,899			7.3		14.6		85,198		-5.2		13.7		169,361		6.1		14.3

	Total		615,651			2.7		100.0		619,580		0.6		100.0		1,187,204		1.2		100.0

Net losses paid


		(All amounts are in millions of yen.)
				Periods

		For the six months ended								For the six months ended								For the year ended
Accounts		September 30, 2001								September 30, 2002								March 31, 2002

							Net loss							Net loss								Net loss
		Amount			Increase		ratio			Amount		Increase		ratio		Fluctuation		Amount		Increase		ratio

					%		%					%		%		%				%		%
	Fire Insurance		24,522			-10.0		31.2			23,521		-4.1		31.1		-0.1		49,422		-12.7		32.8
	Hull Insurance		15,400			34.6		66.3			10,914		-29.1		47.5		-18.8		28,282		13.5		60.1
	Personal Accident Insurance		25,727			-2.1		41.9			24,654		-4.2		41.0		-0.9		51,324		-5.6		44.2
	Automobile Insurance		162,661			4.2		59.2			159,234		-2.1		60.2		1.0		334,919		0.1		62.0
	Compulsory Automobile
	Liability Insurance		28,032			-1.1		69.1			30,004		7.0		49.6		-19.5		56,479		-0.3		74.4
	Other		49,270			12.1		58.6	��		47,011		-4.6		58.2		-0.4		102,788		8.8		63.9

	Total		305,614			4.2		54.9			295,341		-3.4		52.4		-2.0		623,216		0.3		57.3

(Note) Net loss ratio is calculated on the basis of net losses paid adding to loss adjustment expenses.

Major prerequisites of the business outlook for the following business year shall be as follows:

•		Net premiums written is estimated based on the development of past business results, reflecting effects of abolition of ceded reinsurance of compulsory automobile liability insurance by the government from April 2002 (a factor of increase in income) and the change of organization in which branches located in U.S. are changed into subsidiaries of the Company in the first half of the business year (a factor of decrease in income).

•		With regard to net claims paid, payment due to natural calamity is estimated to be \6.0 billion, predicting from the past business results.

•		With regard to outlook for asset management, it is assumed that there will be no substantial fluctuation in market interest rate, foreign exchange rate or stock prices on and after September 30, 2002.

2. [Translation in English]

Reference Materials
for the Six Months ended September 30, 2002

November 22, 2002

Mitsui Sumitomo Insurance Company, Limited

The figures after deducting the refundable premium of the automobile insurance“Modo-Rich", which contains a special clause of premium adjustment and refund at maturity, and the increase arising from the abolition of ceded reinsurance of compulsory automobile liability insurance by the Japanese government, is presented herein.

Semiannual Income and Loss for the Six Months ended September 30, 2002
in comparison with the corresponding Six Months of the Previous Year


		(All amounts are in millions of yen.)
		Periods

		For the six		For the six				Percentage of		For the year
		months ended		months ended				increase or		ended
Accounts		Sept. 30, 2001		Sept. 30, 2002		Fluctuation		decrease		Mar. 31, 2002

								%
Direct premiums written (including deposit premiums by policyholders)			821,864		829,210		7,345		0.9		1,578,745
Direct premiums written			664,950		681,459		16,508		2.5		1,282,014

Underwriting income			823,081		795,054		-28,027		-3.4		1,681,851
	Net premiums written		609,541		606,233		-3,307		-0.5		1,175,662
	Deposit premiums by policyholders		156,914		147,750		-9,163		-5.8		296,730
Underwriting expenses			702,093		663,308		-38,784		-5.5		1,451,341
	Net losses paid		305,614		295,341		-10,273		-3.4		623,216
	Losses adjustment expenses		29,235		29,194		-40		-0.1		56,853
	Commission and brokerage expenses		106,229		109,320		3,090		2.9		207,580
	Deposits to policyholders		241,973		228,626		-13,347		-5.5		523,145

Investment income			55,564		44,267		-11,296		-20.3		102,652
	Interest and dividend income		68,382		59,884		-8,498		-12.4		129,222
	Gain on sale of securities		19,556		15,066		-4,489		-23.0		37,922
Investment expenses			28,550		21,729		-6,821		-23.9		36,422
	Loss on sale of securities		659		1,085		425		64.5		2,845
	Loss on devaluation of securities		21,263		9,913		-11,350		-53.4		27,125

Operating, general and administrative expenses			122,054		109,400		-12,654		-10.4		234,929
Operating, general and administrative expenses for underwriting			114,202		101,998		-12,203		-10.7		219,808

Other ordinary income and expenses			346		67		-279		-80.7		825

Ordinary profit			26,294		44,951		18,657		71.0		62,635
Underwriting gain			6,388		29,371		22,983		359.8		10,228
Extraordinary Income and Losses
	Extraordinary income		13,761		3,287		-10,474		-76.1		12,361
	Extraordinary losses		22,172		3,509		-18,663		-84.2		42,739

	Extraordinary income and losses		-8,410		-221		8,189		—		-30,377

Income before income taxes			17,883		44,729		26,846		150.1		32,257
Income taxes and inhabitants’ taxes			19,740		22,021		2,281		11.6		16,797
Adjustment of income taxes			-15,670		-7,219		8,451		—		-8,148
Net income			13,813		29,927		16,114		116.7		23,607

Unappropriated retained earnings brought forward from the previous year			16,942		21,827		4,885		28.8		16,942
Reversal of reserve for special depreciation			143		—		-143		-100.0		143
Reversal of reserve for losses on overseas investments, etc.			0		—		-0		-100.0		0
Reversal of reserve for advanced depreciation			4		—		-4		-100.0		4
Reserve for advanced depreciation			60		—		-60		-100.0		60
Adjustment due to merger			—		—		—		—		-40
Unappropriated retained earnings at end of year			30,842		51,755		20,912		67.8		40,597

Ratio			%		%						%
Net loss ratio			54.9		53.5						57.8
Net operating expense ratio			36.2		34.9						36.4

(Note)		Underwriting profit = Underwriting income – (Underwriting expenses + Operating, general and administrative expenses for underwriting)±Other income and expenses

		“Other income and expenses” includes the amounts equivalent to income taxes incurred with Compulsory automobile liability insurance, etc.

		Net loss ratio = (Net claims paid + Loss adjustment expense) / Net premiums written × 100

		Net operating expense ratio = (Commission and collection expenses + Operating, general and administrative expenses) / Net premiums written × 100

The figures after deducting the refundable premium of the automobile insurance“Modo-Rich”, which contains a special clause of premium adjustment and refund at maturity, and the increase arising from the abolition of ceded reinsurance of compulsory automobile liability insurance by the Japanese government, is presented herein.

Direct premiums written (including deposit premiums by policyholders)


		(All amounts are in millions of yen.)
		Periods

			For the six months ended						For the six months ended						For the year ended
Accounts			September 30, 2001						September 30, 2002						March 31, 2002

			Amount		Increase		Ratio		Amount		Increase		Ratio		Amount		Increase		Ratio

					%		%				%		%				%		%
	Fire Insurance			127,994		-9.1		15.6		130,070		1.6		15.7		255,832		-5.5		16.2
	Hull Insurance			28,843		5.1		3.5		30,039		4.1		3.6		58,534		5.3		3.7
	Personal Accident Insurance			180,921		-21.7		22.0		173,797		-3.9		21.0		340,154		-16.0		21.5
	Automobile Insurance			296,702		2.5		36.1		301,006		1.5		36.3		582,516		1.3		36.9
	Compulsory Automobile Liability Insurance			84,113		1.1		10.2		100,954		20.0		12.2		149,910		0.1		9.5
	Other			103,289		2.4		12.6		93,342		-9.6		11.2		191,796		-0.6		12.2

	Total			821,864		-5.9		100.0		829,210		0.9		100.0		1,578,745		-4.2		100.0
Deposit premiums by policyholders (inclusive)				156,914		-27.7		19.1		147,750		-5.8		17.8		296,730		-20.5		18.8

Net premiums written


		(All amounts are in millions of yen.)
		Periods

			For the six months ended						For the six months ended						For the year ended
Accounts			September 30, 2001						September 30, 2002						March 31, 2002

			Amount		Increase		Ratio		Amount		Increase		Ratio		Amount		Increase		Ratio

					%		%				%		%				%		%
	Fire Insurance			85,566		4.8		14.0		81,330		-5.0		13.4		161,572		-1.6		13.7
	Hull Insurance			24,945		9.5		4.1		24,600		-1.4		4.1		49,827		6.1		4.2
	Personal Accident Insurance			66,313		-6.6		10.9		65,380		-1.4		10.8		124,225		-5.0		10.6
	Automobile Insurance			295,353		2.6		48.5		299,606		1.4		49.4		580,162		1.4		49.4
	Compulsory Automobile Liability Insurance			47,461		2.4		7.8		50,116		5.6		8.3		90,513		3.2		7.7
	Other			89,899		7.3		14.7		85,198		-5.2		14.0		169,361		6.1		14.4

	Total			609,541		2.7		100.0		606,233		-0.5		100.0		1,175,662		1.2		100.0

Net losses paid


		(All amounts are in millions of yen.)
		Periods

		For the six months ended						For the six months								For the year ended
		September 30, 2001						ended September 30, 2002								March 31, 2002

						Net loss						Net loss								Net loss
Accounts		Amount		Increase		ratio		Amount		Increase		ratio		Fluctuation		Amount		Increase		ratio

				%		%				%		%		%				%		%
	Fire Insurance		24,522		-10.0		31.2		23,521		-4.1	��	31.1		-0.1		49,422		-12.7		32.8
	Hull Insurance		15,400		34.6		66.3		10,914		-29.1		47.5		-18.8		28,282		13.5		60.1
	Personal Accident Insurance		25,727		-2.1		41.9		24,654		-4.2		41.0		-0.9		51,324		-5.6		44.2
	Automobile Insurance		162,661		4.2		60.4		159,234		-2.1		58.8		-1.6		334,919		0.1		63.2
	Compulsory Automobile Liability Insurance		28,032		-1.1		69.1		30,004		7.0		69.9		-0.8		56,479		-0.3		74.4
	Other		49,270		12.1		58.6		47,011		-4.6		58.2		-0.4		102,788		8.8		63.9

	Total		305,614		4.2		54.9		295,341		-3.4		53.5		-1.4		623,216		0.3		57.8

(Note 1)		Net loss ratio is calculated on the basis of net losses paid adding to loss adjustment expenses.

(Note 2)		The refundable premium of the automobile insurance “Modo-Rich” which contains a special clause of premium adjustment and refund at maturity:


For the six months ended September 30, 2001:		¥6,109 million
For the six months ended September 30, 2002:		-¥7,161 million
For the year ended March 31, 2002:		¥11,542 million

(Note 3)

The increase arising from the abolition of ceded reinsurance of compulsory automobile liability insurance by the Japanese government:


For the six months ended September 30, 2002:		¥20,508 million

Breakdown of Business Expenses
(operating, general and administrative expenses + commission and brokerage expenses)


	(Billions of yen)

	For the six months ended					For the six months ended										Percentage of increase or
	September 30, 2001					September 30, 2002					Increase or decrease					decrease

	Operating, general					Operating, general				Operating, general						Operating, general
	and administrative					and administrative					and administrative					and administrative
	expenses		Underwriting			expenses		Underwriting			expenses		Underwriting			expenses			Underwriting

Personnel expenses		62.7		60.5			56.5		54.5			-6.2		-5.9			-10.0	%		-9.9	%
Nonpersonnel expenses		51.2		46.5			44.8		40.6			-6.3		-5.8			-12.4	%		-12.6	%
Taxes and contributions		8.0		7.1			8.0		6.8			-0		-0.3			-0.7	%		-4.7	%

Subtotal		122.0		114.2			109.4		101.9			-12.6		-12.2			-10.4	%		-10.7	%

Commission and brokerage expenses		106.2		106.2			109.3		109.3			3.0		3.0			2.9	%		2.9	%

Business expenses		228.2		220.4			218.7		211.3			-9.5		-9.1			-4.2	%		-4.1	%

Net business expense ratio				36.2	%				34.9	%				-1.3	%

Condition of Payment due to Natural Disasters


	(Billions of yen)

	For the six months ended Sep. 30, 2001						For the six months ended Sep. 30, 2002

	Direct losses		Net losses		Reserve for		Direct losses		Net losses		Reserve for
	paid		paid		outstanding claims		paid		paid		outstanding claims

Fire Insurance		0.2		0.2		0.7		0.3		0.3		0.4
Automobile Insurance		0		0		0		0.1		0.1		0
Other		0		0		0.3		0.5		0.5		0.1

Total		0.3		0.3		1.1		1.0		0.9		0.5

(Note) Natural disasters occurred during the relevant period have been stated in the above list.

Damages due to Stolen Automobiles

(Billions of yen)

For the six months ended September 30, 2001

For the six months ended September 30, 2002

Number of

Direct losses

Reserve for

Number of

Direct losses

Reserve for

payment

paid

outstanding claims

payment

paid

outstanding claims

682.2

5.5

1.9

775.0

4.9

1.8

Reserve for Outstanding Claims


		(Billions of yen)

			For the six months ended				For the six months ended
			September 30, 2001				September 30, 2002				Increase or decrease

			Outstanding		Increase		Outstanding		Increase		Outstanding

Fire Insurance				30.3		-0		35.3		3.4		31.9
Hull Insurance				16.8		0.2		16.7		-1.0		17.7
Personal Accident Insurance				325		-1.3		31.6		-0.5		32.1
Automobile Insurance				203.0		-0.1		209.1		-8.5		217.7
Compulsory Automobile
	Liability Insurance			20.8		0.1		21.9		0.4		21.5
Other				80.9		4.1		86.2		2.0		84.2

	Total			384.5		3.0		401.1		-4.2		405.4

Reserve for Extraordinary Risks


		(Billions of yen)
		For the six months ended					For the six months ended					For the year ended
		September 30, 2001					September 30, 2002					March 31, 2002

				Reserve					Reserve					Reserve
		Outstanding		ratio			Outstanding		ratio			Outstanding		ratio

Fire Insurance			123.5		73.2	%		130.7		81.6	%		126.9		79.8	%
Hull Insurance			41.6		83.5	%		43.6		88.7	%		42.6		85.6	%
Personal Accident Insurance			63.8		48.1	%		67.3		51.5	%		65.4		52.7	%
Automobile Insurance			100.3		17.0	%		100.3		16.7	%		89.6		15.4	%
Other			79.5		44.2	%		85.0		49.9	%		81.9		48.4	%

	Total		408.9		36.5	%		427.1		38.5	%		406.6		37.6	%

(Note)

Reserve ratio represents the ratio to net premiums written (excluding earthquake, compulsory automobile liability insurance and refundable premium of the automobile insurance “Modo-Rich”). The reserve ratio for the semiannual period represents the ratio multiplied by 0.5.

Long-Lived Assets

(Billions of yen)

For the six months ended

For the year ended

September 30, 2001

September 30, 2002

March 31, 2002

Long-lived assets

2,781.8

2,625.6

2,675.1

(Note)

Long-lived assets mean the aggregate outstanding amount of refundable reserve of saving-type insurance and dividend equalization reserve to policyholders, which are items of underwriting reserve.

- End -

3. [Translation in English]

December 3, 2002

Summary of Semiannual Consolidated Financial Statements
for the Year Ending March 31, 2003


Name of Listed Company:		Mitsui Sumitomo Insurance Company, Limited
Code Number:		8752
Stock Exchanges:		Tokyo Stock Exchange, Osaka Securities Exchange and Nagoya Securities Exchange
Headquarters:		Tokyo
(URLhttp://www.ms-ins.com)
Representative:		Hiroyuki Uemura, President & Director
Contact:		Hiroyuki Takahashi
		Manager of Financial Accounting Section, Accounting Dept.
Phone number:		03-3297-6648

The Board of Directors approved the consolidated financial statements of Mitsui Sumitomo Insurance Company, Limited (the “Company”) on the following date:


	December 3, 2002

Whether or not the U.S. generally accepted accounting standard is adopted to be applied to the Company’s financial statements:


	Adopted.

Non-consolidated business results for the six months ended September 30, 2002 (from April 1, 2002 to September 30, 2002):

(1)

Consolidated operating results


	Ordinary income				Ordinary profit				Net income

	¥ mil		%		¥ mil		%		¥ mil		%
For the year ended September 30, 2002		950,300		0.6		44,670		73.1		29,500		235.9
For the year ended September 30, 2001		944,253		-4.5		25,800		-15.5		8,783		-57.8

For the year ended March 31, 2002		1,901,260		-0.1		62,594		2.0		18,986		-36.5


	Net income			Diluted net income
	per share			per share

For the year ended September 30, 2002		¥20.20			¥19.00
For the year ended	Sumitomo		¥4.32	Sumitomo		¥4.22
September 30, 2001	Mitsui		¥7.81	Mitsui		¥7.36

For the year ended March 31, 2002		14.44			13.66

(Notes)

(1)

Equity in earnings (losses) of affiliates:


For the six months ended September 30, 2002:			¥ —
For the six months ended September 30, 2001:			¥ —
For the year ended March 31, 2002:			¥ —

(2)

The average number of shares of common stock in issue on a consolidated basis:


For the six months ended September 30, 2002:		1,459,740,627 shares
For the six months ended September 30, 2001:	Sumitomo	662,988,039 shares
	Mitsui	757,210,181 shares
For the year ended March 31, 2002:		1,115,620,523 shares

	(3)		No accounting change was made during the six months ended September 30, 2002.

	(4)		The percentages presented in the column “Ordinary income”, “Ordinary profit” and “Net income” represent an increase or decrease ratio in comparison with the relevant figures for the corresponding period of the previous business year.

(2)

Consolidated financial conditions


					Shareholders'
					equity as a			Shareholders'
	Total		Shareholders'		percentage of			equity
	assets		equity		total assets			per share

	(¥ mil.)		(¥ mil.)					(¥)
As of September 30, 2002		6,702,678		1,147,652		17.1	%	786.29
As of September 30, 2001								Sumitomo:	884.21
		7,174,982		1,205,717		16.8	%	Mitsui:	818.12

As of March 31, 2002		7,323,905		1,269,927		17.3	%	869.82

		(Note)

		The number of shares of common stock in issue on a consolidated basis:


For the six months ended September 30, 2002:		1,459,566,948 shares
For the six months ended September 30, 2001:	Sumitomo	662,988,039 shares
	Mitsui	757,210,304 shares
For the year ended March 31, 2002:		1,459,972,121 shares

(3)

Consolidated cash flows

Balance of

Cash flows from

cash and cash

operating

investing

financing

equivalents at

activities

end of period

¥ mil.

For the six months ended September 30, 2002

70,415

-82,218

-8,582

350,801

For the six months ended September 30, 2001

64,019

-7,601

-10,960

447,518

For the year ended March 31, 2002

31,007

-20,979

-42,299

372,383

(4)

Scope of consolidation


Number of consolidated subsidiaries:			27
Number of unconsolidated subsidiaries accounted for by the equity method:			0
Number of affiliates accounted for by the equity method:			0

(5)

Changes in the scope of consolidation for the six months ended September 30, 2001


Number of newly consolidated subsidiaries:			1
Number of consolidated subsidiaries excluded from consolidation:			0
Number of unconsolidated subsidiaries and affiliates newly accounted for by the equity method:			0
Number of unconsolidated subsidiaries and affiliates ceased to be accounted for by the equity method:			0

Consolidated operating results forecast for the Year ending March 31, 2003 (from April 1, 2002 to March 31, 2003):

Ordinary income

Ordinary profit

Net income

¥mil.

For the year ending March 31, 2002

1,980,000

69,000

33,000

The estimated net income per share for the year ending March 31, 2003: ¥22.60.

Note:

			The foregoing are forward-looking statements based on a number of assumptions and beliefs in light of the information currently available to management and subject to significant risks and uncertainties. Actual financial results may differ materially depending on a number of factors including, adverse economic conditions, currency exchange rate fluctuations, adverse legislative and regulatory developments, delays in new product launches, pricing and insurance product initiatives of competitors, the inability of the Company or its subsidiaries or affiliates to market existing and new insurance products effectively, infringements intellectual property rights of the Company or its subsidiaries or affiliates and the adverse outcome of material litigation.

(Note)			Please refer to page 5 of the Japanese original version with respect to the preconditions and other related matters for the operating results forecast stated above.

Corporate Group

The corporate group (the Company and related companies) consists of the Company, its 79 subsidiaries and 14 affiliates. It is an insurance and financial group carrying out the “non-life insurance business and non-life insurance related business” and “life insurance business”.

graph

(Notes)

1.		Marks before company names indicate the following: : consolidated subsidiary : unconsolidated subsidiary

2.		MITSUI SUMITOMO INSURANCE Asset Management Co., Ltd. merged with MITSUI LIFE GLOBAL ASSET MANAGEMENT CO., LTD., Sumitomo Life Investment Co., Ltd., Sumisei Global Investment Trust Management Co., Ltd. and Sakura Investment Management Co., Ltd. as of December 1, 2002 and renamed into SUMITOMO MITSUI Asset Management Company, Limited.

3.		MM Reinsurance Company Limited changed its name into MS Frontier Reinsurance Limited as of July 12, 2002.

Management Policy

Fundamental Management Policy

As its management concept, Mitsui Sumitomo Insurance Company, Limited (the “Company”) has stated:

Through our insurance and financial services business, we commit ourselves to the following:

	•	Bringing security and safety to people and businesses around the world, and making a lasting contribution to the enrichment of society.

	•	Providing the finest products and services, and realizing customer satisfaction.

	•	Continuously improving our business, thereby meeting our shareholders’ expectations and earning their trust.

The Company shall also strive to be, and maintain the corporate image of:

	(1)		an insurance and financial group (aiming at the realization of a non-life insurance company in Japan having the No. 1 growth, profitability and size and, operating globally on the basis of an aggressive international strategy) which engages in non-life insurance and life insurance as its core business and at the same time dynamically develops financial services and risk related services business;

	(2)		an insurance and financial group which is highly valued and trusted by customers, shareholders, agencies, and society; and

	(3)		an insurance and financial group, the staff of which is full of creativity and is energetic, very fresh and innovative.

Basic Profit Distribution Policy

The Company intends to respond to support from its shareholders by paying dividends suitable for its business results and effecting a proper profit returning policy on the basis of maintaining stable dividends, while taking the future managerial environment and business developments into consideration. Given the nature of the non-life insurance business, however, the Company deems it necessary to seek to enhance its internal reserves in preparation for the occurrence of an earthquake or any other extraordinary disaster.

Such internal reserves will be used for effective investment aimed at strengthening the managerial basis of the Company to prepare for changes in the business environment while at the same time efforts will be made to expand its collateral power.

Medium- and Long-term Corporate Management Strategies and Matters to be Addressed by the Company

In the insurance industry, presently in the midst of further severe operating conditions including contraction of the reinsurance market after the terrorist attacks in the United States following a sharp rise in reinsurance premium rates related thereto, revealed investment risks due to the sluggish stock markets, etc., it appears that competition in the industry will become more intensified and movements towards business tie-ups or reorganizations will be accelerated across borders or beyond business segments.

Under these circumstances, in accordance with the basic management plan “MS WAVE” for business years 2001 and 2002, the Company intends to promote a risk solution business of the highest quality by producing the maximum benefits from the merger through expanded scale and improved business efficiency and also by positively utilizing managerial resources.

Basic strategies of the basic management plan “MS WAVE” of the Company are as follows:

(1)

Strategy for achieving No. 1 growth and profitability

	(1)		Innovation of the sales structure of insurance agencies, utilization of the computer system for insurance agencies, etc.;

	(2)		Marketing new products matching the needs of the market, aggressive entrance into growing market;

	(3)		Improvement in loss ratio, decrease in operating costs;

	(4)		Reinforcement of asset management capability and financial service business; and

	(5)		Reinforcement of risk related business, such as risk management.

(2)

Strategy for achieving the highest quality (Customer satisfaction, Corporate governance, Compliance)

	(1)		Enhancement of customer satisfaction and realization of a superior position over competitors attributable to the highest quality products, services and response capability to customers;

	(2)		Improvement of corporate governance in response to the shareholders’ and the market’s expectation;

	(3)		Compliance to the fullest extent; and

	(4)		Reinforcement of risk management structure.

(3)

Strategy for maximizing M-S power (Staff of Mitsui Sumitomo Insurance Company, Limited, and its agencies)

	(1)		Early materialization of the merger effect by consolidating all staff in one union;

	(2)		Creation of a new corporate culture, training of personnel full of creativity; and

	(3)		Strategic utilization of information technology (IT).

In addition to the strategies mentioned above, the Company is promoting business alliances aggressively for expansion of growth and profitability. Major business alliances and progresses thereof are as follows:

	(1)		Strengthening of insurance business through the Mitsui and Sumitomo Group

			The Company is promoting following business alliances pursuant to the “Basic Agreement Concerning Comprehensive Alliance” dated November 22, 2001 which was concluded among the Company, Mitsui Mutual Life Insurance Company, Sumitomo Life Insurance Company and Sumitomo Mitsui Banking Corporation.

		•	Restructuring of asset management business

			Five asset management subsidiaries of the above-mentioned companies were merged on December 1, 2002 and renamed into “SUMITOMO MITSUI Asset Management Co., Ltd.”; and

		•	Converging of Mitsui life and non-life insurance subsidiaries into the Company

			The Company entered into the basic agreement concerning convergence of Mitsui Seimei General Insurance Co., Ltd. on June 27, 2002, insurance contracts which will expire on and after November 1, 2002 will be replaced by similar insurance products of the Company in due order, and insurance contracts in force as of November 1, 2003 will be transferred to the Company comprehensively with the approval of relevant authorities as well as the approval at the general meeting of shareholders of the Company.

	(2)		Alliance with the U.S. Citi Group

			The Company entered into the alliance with Citi Insurance International Holdings Inc. (“Citi Insurance”), an international insurance division of the U.S. Citi Group, and jointly established “MITSUI SUMITOMO CitiInsurance Life Insurance Co. Ltd.”. It has commenced business since October 2002. The new company is specialized in marketing variable individual pension insurance products through channels of financial institutions such as securities companies, banks, etc.

	(3)		Alliance with the Nissay Group

			In October, 2000 the Company reached an agreement with the Nissay Group to jointly deal with the mutual provision of products and services and with the building-up of computer systems for insurance agencies, and then in April, 2001 the Company and the Group jointly set up Insurance System Solution Inc, a company to develop and operate computer systems for insurance agencies. The Company developed a composite management system for customers and contracts of both life insurance and non-life insurance products in April 2002 for the first time in the insurance industry.

	(4)		Entrance into asset valuation business

			In April 2002, the Company set up a joint venture called “American Appraisal Japan Co. Ltd.” with American Appraisal Associates Inc. through InterRisk Research Institute & Consulting, Inc., which is an affiliate of the Company, and thereby entered into asset appraisal market in Japan to conduct professional valuation practice.

Measures for Improvement of Management Controlling Body
(i.e., for Enhancement of Corporate Governance)

The Company has adopted an executive officer system to separate its decision-making and supervising functions of important managerial matters from its executive functions, thereby establishing a system for the execution of business in which each of the executive officers is responsible as well as making discussions at meetings of the board of directors more vigorous and the decision-making process more efficient.

The Company has determined that the term of office of directors shall be one year so as to structure a management system capable of responding to changes with mobility and to define directors’ responsibility in management. Furthermore, the Company has also set up a personnel committee and a compensation committee as internal committees of the board of directors which will advise the board of directors on personnel matters and matters of compensation for directors and executive officers, respectively, upon delegation by the board of directors.

Viewpoint and Policy, etc. related to Reduction of Investment Units

The Company recognizes that reduction of investment units (the number of shares consisting a trading unit) is one of the effective measures to expand classes of individual investors and to enhance liquidity of stocks; however, in light of Company’s current share price level, number of shareholders, liquidity of stocks, cost effectiveness, etc., the Company considers that reduction of investment units should not be effected immediately at this point. The Company intends to deal with this matter flexibly, considering changes of the above-mentioned factors, market demand, etc.

Operating Results and Financial Position

1.		Operating results of the consolidated six months ended September 30, 2002

(1)		Operating results of the six months ended September 30, 2002

During the six months ended September 30, 2002, ordinary income increased by ¥6 billion compared with the corresponding period of the previous year and amounted to ¥950.3 billion; and ordinary expenses decreased by ¥12.8 billion and amounted to ¥905.6 billion. As a result, ordinary profit, which is the amount calculated by deducting ordinary expenses from ordinary income increased by ¥18.8 billion and amounted to ¥44.6 billion.

The details by business segment are as follows:

			(1) In non-life insurance business, as a result of the Company’s efforts to expand sales of major products such as “MOST”, a new automobile insurance product providing a vast range of compensation with substantial services attached thereto, “Home Pikaichi”, premium fire insurance product for homeowners, etc., and the abolition of ceded reinsurance of compulsory automobile liability insurance by the government, net premiums written amounted to ¥655.3 billion, and ordinary income, which is the amount calculated by adding net premiums written and investment income, etc. amounted to ¥886.9 billion. Reflecting the decrease in net claims paid and the Company’s efforts to reduce operating expenses and general and administrative expenses, ordinary expenses remained at ¥842.3 billion, and as a result, ordinary profit amounted to ¥44.5 billion.

			(2) In life insurance business, Mitsui Sumitomo Kirameki Life Insurance Company, Limited, which is a subsidiary of the Company, made efforts to expand its business and the total amount of personal insurance, personal annuity insurance and group insurance in force increased, and thus life insurance premiums written amounted to ¥59.8 billion and ordinary income amounted to ¥64.6 billion. Ordinary expenses amounted to ¥64.5 billion, and as a result, ordinary profit amounted to ¥77 million.

After adding to or deducting from the ordinary profit indicated above, extraordinary profit, extraordinary losses, income tax and resident’s tax, etc. adjustments to such taxes, and minority interest, net income for the six months ended September 30, 2002 increased by ¥20.7 billion and amounted to ¥29.5 billion.

(2)

Prospects for operating results of the consolidated business year

With regard to operating results for the consolidated business year ending March 2003, the Company estimates ordinary income to be ¥1,980 billion, ordinary profit to be ¥69 billion and net income for the business year ending March 31, 2003 to be ¥33 billion, under the following conditions:

	•		Net premiums written is estimated based on the development of past business results, reflecting effects of the abolition of ceded reinsurance of compulsory automobile liability insurance by the government from April 2002 (a factor of increase in income).

	•		With regard to net claims paid, payment by the Company due to natural disaster is estimated to be ¥6 billion, predicting from the past business results as well as those of the six months ended September 30, 2002.

	•		With regard to prospects for asset management, it is assumed that there will be no substantial fluctuation in the market interest rates, the foreign exchange rates or the stock prices as of September 30, 2002.

Note:

The foregoing are forward-looking statements based on a number of assumptions and beliefs in light of the information currently available to management and subject to significant risks and uncertainties. Actual financial results may differ materially depending on a number of factors including, adverse economic conditions, currency exchange rate fluctuations, adverse legislative and regulatory developments, delays in new product launches, pricing and insurance product initiatives of competitors, the inability of the Company or its subsidiaries or affiliates to market existing and new insurance products effectively, infringements intellectual property rights of the Company or its subsidiaries or affiliates and the adverse outcome of material litigation.

Financial position

The consolidated total assets of the Company at the end of the six months ended September 30, 2002 decreased by ¥621.2 billion compared with the corresponding period of the previous year and amounted to ¥6,702.6 billion as a result of decrease in unrealized holding gain on securities due to decline in the stock market, decrease in per contra acceptance and guarantee due to change of valuation method based on the market value with regard to credit derivatives, etc. The capital stock decreased by ¥122.2 billion compared with the corresponding period of the previous year and amounted to ¥1,147.6 billion due to decrease in unrealized holding gain on securities, etc.

Cash flows for the six months ended September 30, 2002 are as follows. Cash flow from operating activities increased by ¥6.3 billion compared with the corresponding period of the previous year and amounted to ¥70.4 billion as both non-life insurance and life insurance businesses were steady. Cash flow from investment activities decreased by ¥74.6 billion compared with the corresponding period of the previous year and amounted to -¥82.2 billion due to active investment mainly through the purchase of securities. Cash flow from financial activities increased by ¥2.3 billion and amounted to -¥8.5 billion due to income from issuance of shares to minority shareholders, etc. As a result, cash and cash equivalents at the end of the six months ended September 30, 2002 decreased by ¥21.5 billion compared with the corresponding period of the previous year and amounted to ¥350.8 billion.

Semiannual Income and Loss for the Six Months ended September 30, 2002
in comparison with the corresponding Six Months of the Previous Year


		(All amounts are in millions of yen.)
		Periods

		For the six		For the six				Percentage		For the year
		months ended		months ended				of increase		ended March
Accounts		Sep. 30, 2001		Sep. 30, 2002		Fluctuation		or decrease		31, 2002

Ordinary Income and Expenses
Underwriting income			880,689		896,803		16,113		1.8		1,781,265
	Net premiums written		637,349		655,398		18,048		2.8		1,234,874
	Deposit premiums by policyholders		156,914		147,750		-9,163		-5.8		296,730
	Life insurance premiums		51,378		59,803		8,425		16.4		120,055
Underwriting expenses			752,037		756,164		4,126		0.5		1,534,807
	Net losses paid		313,704		308,424		-5,279		-1.7		641,878
	Losses adjustment expenses		30,373		30,994		620		2.0		59,340
	Commission and brokerage expenses		113,196		116,988		3,791		3.3		223,534
	Deposits to policyholders		241,973		228,626		-13,347		-5.5		523,145
	Losses incurred with life insurance		4,645		9,043		4,397		94.7		12,749

Investment income			61,634		51,709		-9,925		-16.1		116,184
	Interest and dividend income		72,237		65,859		-6,378		-8.8		138,378
	Gain on sale of securities		21,167		16,310		-4,857		-22.9		41,848
Investment expenses			30,529		23,496		-7,032		-23.0		40,311
	Loss on sale of securities		1,820		1,725		-94		-5.2		5,071
	Loss on devaluation of securities		21,862		10,044		-11,818		-54.1		28,220

Operating, general and administrative expenses			132,786		124,559		-8,227		-6.2		259,183

Other ordinary income and expenses			-1,170		-436		734		—		-553

Deferred amount under Article 113 of the Insurance Business Law			—		-813		-813		—		—

Ordinary profit			25,800		44,670		18,869		73.1		62,594

Extraordinary Income and Losses
	Extraordinary income		7,783		3,123		-4,659		-59.9		6,379
	Extraordinary losses		22,172		3,541		-18,630		-84.0		43,103

	Extraordinary income and losses		-14,388		417		13,970		—		-36,723

Income before income taxes			11,412		44,252		32,840		287.8		25,870
Income taxes and inhabitants’ taxes			21,335		21,830		495		2.3		17,984
Adjustment of income taxes			-18,782		-7,119		11,662		—		-11,470
Minority interests			76		40		-35		-46.7		369
Net income			8,783		29,500		20,717		235.9		18,986

Direct premiums written (including deposit premiums by policyholders)


		(All amounts are in millions of yen.)
		Periods

		For the six months ended						For the six months ended						For the year ended
		September 30, 2001						September 30, 2002						March 31, 2002

Accounts		Amount		Increase		Ratio		Amount		Increase		Ratio		Amount		Increase		Ratio

				%		%				%		%				%		%
Fire Insurance			132,637		-8.2		15.6		135,933		2.5		15.7		264,485		-4.7		16.1
Hull Insurance			32,927		6.5		3.9		35,211		6.9		4.1		67,106		6.9		4.1
Personal Accident Insurance			181,232		-21.7		21.3		174,275		-3.8		20.2		340,778		-15.9		20.8
Automobile Insurance			307,960		2.7		36.2		301,028		-2.3		34.9		605,523		1.5		37.0
Compulsory Automobile Liability Insurance			84,113		1.1		9.9		100,954		20.0		11.7		149,910		0.1		9.1
Other			111,896		7.0		13.1		115,953		3.6		13.4		210,723		4.9		12.9

	Total		850,768		-4.9		100.0		863,357		1.5		100.0		1,638,527		-3.2		100.0
Deposit premiums by policyholders (inclusive)			156,914		-27.7		18.4		147,750		-5.8		17.1		296,730		-20.5		18.1

Net premiums written


		(All amounts are in millions of yen.)
		Periods

		For the six months ended						For the six months ended						For the year ended
		September 30, 2000						September 30, 2001						March 31, 2001

Accounts		Amount		Increase		Ratio		Amount		Increase		Ratio		Amount		Increase		Ratio

				%		%				%		%				%		%
Fire Insurance			88,959		7.2		14.0		84,126		-5.4		12.8		166,751		-0.5		13.5
Hull Insurance			26,908		9.6		4.2		27,157		0.9		4.2		53,766		7.1		4.4
Personal Accident Insurance			66,588		-6.6		10.5		65,701		-1.3		10.0		124,717		-5.0		10.1
Automobile Insurance			307,361		2.9		48.2		300,225		-2.3		45.8		605,028		1.8		49.0
Compulsory Automobile Liability Insurance			47,461		2.4		7.4		70,625		48.8		10.8		90,513		3.2		7.3
Other			100,071		16.1		15.7		107,561		7.5		16.4		194,097		16.6		15.7

	Total		637,350		4.5		100.0		655,398		2.8		100.0		1,234,875		3.1		100.0

Net losses paid


		(All amounts are in millions of yen.)
		Periods

		For the six months ended						For the six months ended						For the year ended
		September 30, 2000						September 30, 2001						March 31, 2001

Accounts		Amount		Increase		Ratio		Amount		Increase		Ratio		Amount		Increase		Ratio

				%		%				%		%				%		%
Fire Insurance			25,612		-8.4		8.2		24,754		-3.3		8.0		52,156		-11.2		8.1
Hull Insurance			15,920		29.2		5.1		12,594		-20.9		4.1		29,548		12.1		4.6
Personal Accident Insurance			25,829		-2.2		8.2		24,834		-3.9		8.1		51,511		-5.8		8.0
Automobile Insurance			166,254		5.0		53.0		163,615		-1.6		53.0		342,063		0.7		53.3
Compulsory Automobile Liability Insurance			28,032		-1.1		8.9		30,004		7.0		9.7		56,479		-0.3		8.8
Other			52,055		15.5		16.6		52,621		1.1		17.1		110,119		13.0		17.2

	Total		313,704		5.1		100.0		308,424		-1.7		100.0		641,878		1.3		100.0

(Note) Any figures are amounts before the off-set of intersegment transactions.

Semiannual Consolidated Balance Sheet


													(All amounts are in millions of yen.)
				Consolidated periods

				As of				As of								As of
				September 30, 2001				September 30, 2002								March 31, 2002

Accounts				Amount		Ratio		Amount		Ratio		Fluctuation			Amount			Ratio

						%				%									%
(Assets)
Cash on hand and in banks					480,035		6.69		365,957		5.46			-114,078			415,024			5.67
Call loans					168		0.00		10,000		0.15			9,831			328			0.00
Monetary claims bought					28,737		0.40		44,058		0.66			15,321			17,774			0.24
Money trust					40,743		0.57		38,458		0.57			-2,284			38,639			0.53
Securities					4,667,659		65.05		4,769,753		71.16			102,093			4,887,186			66.73
Loans					807,289		11.25		732,717		10.93			-74,571			764,426			10.44
Real property and equipment					332,744		4.64		298,856		4.46			-33,887			309,985			4.23
Other assets					383,060		5.34		428,636		6.40			45,575			367,845			5.02
Deferred tax assets					1,089		0.01		1,450		0.02			360			1,334			0.02
Customers’ guarantees liability					458,178		6.39		36,803		0.55			-421,374			547,388			7.47
Reserve for bad debts					-24,602		-0.34		-24,000		-0.36			602			-26,018			-0.35
Reserve for investment losses					-120		-0.00		-13		-0.00			107			-8			-0.00

Total Assets					7,174,982		100.00		6,702,678		100.00			-472,304			7,323,905			100.00

			(Liabilities)
Underwriting funds					4,962,444		69.16		5,010,373		74.75			47,928			4,931,667			67.34
	Reserve for outstanding claims				434,646				481,037					46,390			465,029
	Underwriting reserves				4,527,798				4,529,335					1,537			4,466,638
Convertible bonds					104,957		1.46		85,098		1.27			-19,859			85,098			1.16
Other liabilities					186,197		2.59		184,844		2.76			-1,352			165,176			2.26
Accrued retirement benefits					156,837		2.19		160,014		2.39			3,176			163,544			2.23
Accrued bonuses for employees					8,457		0.12		8,598		0.13			140			11,278			0.16
Reserve for loss on sale of loans					2,701		0.04		1,659		0.02			-1,041			1,619			0.02
Reserve for loss on investments in real estate					1,220		0.02		1,220		0.02			—			1,220			0.02
Reserve under the special law					18,302		0.25		20,606		0.31			2,303			20,662			0.28
		Price fluctuation reserve			18,302				20,606					2,303			20,662
Deferred tax liabilities					65,858		0.92		38,561		0.57			-27,296			121,608			1.66
Guarantees outstanding					458,178		6.39		36,803		0.55			-421,374			547,388			7.47

Total Liabilities					5,965,155		83.14		5,547,780		82.77			-417,375			6,049,264			82.60

Minority Shareholders’ Interest					4,109		0.06		7,245		0.11			3,135			4,713			0.06

		(Shareholders’ Equity)
Capital stock					128,473		1.79		128,476		1.92			2			128,476			1.75
Capital surplus					81,989		1.14		81,991		1.22			2			81,991			1.12
Retained earnings					424,999		5.92		401,876		6.00			-23,122			383,410			5.24
Unrealized holding gain on securities					579,184		8.07		553,604		8.26			-25,580			688,873			9.41
Translation adjustments					-8,915		-0.12		-6,438		-0.10			2,477			-1,220			-0.02

			Total		1,205,731		16.80		1,159,510		17.30			-46,220			1,281,531			17.50
Treasury stock					-13		-0.00		-11,857		-0.18			-11,843			-11,603			-0.16

Total shareholders’ equity					1,205,717		16.80		1,147,652		17.12			-58,064			1,269,927			17.34

		Total Liabilities and Shareholders’ equity			7,174,982		100.00		6,702,678		100.00			-472,304			7,323,905			100.00

Semiannual Consolidated Statement of Income


													(All amounts are in millions of yen.)
					Consolidated periods

					For the six months ended				For the six months ended							For the year ended
					September 30, 2001				September 30, 2002							March 31, 2002
					(April 1, 2001 -				(April 1, 2002 -							(April 1, 2001 -
					September 30, 2001)				September 30, 2002)							March 31 2002)

Accounts					Amount		Ratio		Amount		Ratio			Fluctuation		Amount		Ratio

							%				%							%
Ordinary Income and Expenses
Ordinary Income						944,253		100.00		950,300		100.00			6,047		1,901,260		100.00
	Underwriting income					880,689		93.27		896,803		94.37			16,113		1,781,265		93.69
			Net premiums written			637,349				655,398					18,048		1,234,874
			Deposit premiums by policyholders			156,914				147,750					-9,163		296,730
			Investment in income on deposit premiums, etc.			34,824				33,062					-1,761		71,226
			Life insurance premiums			51,378				59,803					8,425		120,055
			Decrease in underwriting reserves			—				—					—		57,627
	Investment income					61,634		6.53		51,709		5.44			-9,925		116,184		6.11
			Interest and dividends income			72,237				65,859					-6,378		138,378
			Gain on sale of securities			21,167				16,310					-4,857		41,848
			Transfer of investment income on deposit premiums, etc.			-34,824				-33,062					1,761		-71,226
	Other Ordinary Income					1,928		0.20		1,787		0.19			-140		3,810		0.20

Ordinary Expense						918,452		97.27		905,630		95.30			-12,821		1,838,666		96.71
	Underwriting expenses					752,037		79.65		756,164		79.57			4,126		1,534,807		80.73
			Net losses paid			313,704				308,424					-5,279		641,878
			Losses adjustment expenses			30,373				30,994					620		59,340
			Commission and brokerage expenses			113,196				116,988					3,791		223,534
			Deposits to policyholders			241,973				228,626					-13,347		523,145
			Losses incurred with life insurance			4,645				9,043					4,397		12,749
			Increase in reserve for outstanding claims			5,347				590					-4,756		31,668
			Increase in underwriting reserves			41,315				60,358					19,042		41,253
	Investment expenses					30,529		3.23		23,496		2.47			-7,032		40,311		2.12
			Loss on sale of securities			1,820				1,725					-94		5,071
			Loss on devaluation of securities			21,862				10,044					-11,818		28,220
		Operating, general and administrative expenses				132,786		14.06		124,559		13.11			-8,227		259,183		13.63
		Other ordinary expenses				3,099		0.33		2,224		0.23			-875		4,364		0.23
		Deferred amount under Article 113 of the Insurance Business Law				—		—		-813		-0.08			-813		—		—

Ordinary profit						25,800		2.73		44,670		4.70			18,869		62,594		3.29

Extraordinary Income and Losses
	Extraordinary income					7,783		0.83		3,123		0.33			-4,659		6,379		0.34
			Decrease in reserve under the special law			1,827				56					-1,770		1,827
				Price fluctuation reserve		1,827				56					-1,770		1,827
			Other extraordinary income			5,956				3,067					-2,888		4,552
	Extraordinary losses					22,172		2.35		3,541		0.37			-18,630		43,103		2.27
			Increase in reserve under the special law			416				—					-416		2,776
				Price fluctuation reserve		416				—					-416		2,776
			Other extraordinary loss			21,755				3,541					-18,213		40,326

Income before income taxes						11,412		1.21		44,252		4.66			32,840		25,870		1.36
Income taxes and inhabitants’ taxes						21,335		2.26		21,830		2.30			495		17,984		0.94
Adjustment of income taxes						-18,782		-1.99		-7,119		-0.75			11,662		-11,470		-0.60
Minority interests						76		0.01		40		0.01			-35		369		0.02

Net income						8,783		0.93		29,500		3.10			20,717		18,986		1.00

Semiannual Consolidated Statements of Retained Earnings

(All amounts are in millions of yen.)

Consolidated periods

For the six months

ended September 30,

For the year ended

2001

2002

March 31, 2002

(April 1, 2001 -

(April 1, 2002 -

(April 1, 2001 -

September 30, 2001)

September 30, 2002)

March 31 2002)

Accounts

Amount

Fluctuation

Amount

(Capital surplus)

Balance of capital surplus at beginning of the period (year)

81,989

81,991

81,989

Balance of additional paid-in capital at beginning of the period

81,989

81,991

81,989

Increase in capital surplus

—

Conversion of convertible bonds

—

Balance of capital surplus at the end of the period (year)

81,989

81,991

(Retained earnings)

Balance of retained earnings at beginning of the period (year)

426,579

383,410

-43,169

426,579

Balance of consolidated retained earnings at beginning of the period

426,579

383,410

-43,169

426,579

Increase in retained earnings

8,789

29,500

20,710

19,055

Net income

8,783

29,500

20,717

18,986

Increase in retained earnings at beginning of the period due to increase in number of consolidated subsidiaries

—

-6

Decrease in retained earnings

10,369

11,033

663

62,225

Cash dividends

10,272

10,949

676

10,272

Bonuses to officers

-13

Adjustment due to merger

—

51,855

Balance of retained earnings at end of the period (year)

424,999

401,876

-23,122

383,410

Semiannual Consolidated Statements of Cash Flows

(All amounts are in millions of yen.)


			Periods

			For the six months		For the six months				For the year ended
			ended Sep. 30, 2001		ended Sep 30, 2002				Mar. 31, 2002
			(April 1, 2001 -		(April 1, 2002 -				(April 1, 2001 -
			September 30, 2001)		September 30, 2002)				March 31 2002)

Accounts			Amount		Amount		Fluctuation		Amount

I.	Cash flows from operating activities
		Income before income taxes		11,412		44,252		32,840		25,870
		Depreciation and amortization		11,173		11,223		50		24,378
		Increase in reserve for outstanding claims		6,700		590		-6,109		33,182
		Increase in underwriting reserves		40,704		59,745		19,040		-18,573
		Increase in reserve for bad debts		-9,987		-1,932		8,054		-8,595
		Increase in reserve for investment losses		-5		4		10		-142
		Increase in accrued retirement benefits		5,649		-3,505		-9,155		407
		Increase in accrued bonuses for employees		-244		-2,743		-2,499		2,608
		Increase in reserve for loss on sales of loans		51		40		-10		-1,031
		Increase in reserve for loss on investment in real estate		-1,089		—		1,089		-1,089
		Increase in price fluctuation reserve		-1,410		-56		1,354		949
		Interest and dividend income		-72,237		-65,859		6,378		-138,378
		Gain or loss in connection with securities (losses)		2,366		-5,137		-7,503		-10,363
		Interest expense		616		450		-165		1,263
		Exchange gains or losses (losses)		162		-75		-237		-909
		Gain or loss in connection with real estate (losses)		2,033		-1,481		-3,514		3,144
		Increase in other assets (excluding investment activities, financing activities, etc.)		-14,687		-38,252		-23,565		-6,906
		Increase in other liabilities (excluding investment activities, financing activities, etc.)		-9,760		2,465		12,225		-22,953
		Other		11,016		5,559		-5,456		12,991

		Subtotal		-17,536		5,287		22,824		-104,147
		Interest and dividends received		76,153		70,200		-5,952		143,970
		Interest paid		-77		-41		35		-1,261
		Income taxes paid		5,480		-5,031		-10,511		-7,553

		Cash flows from operating activities		64,019		70,415		6,395		31,007
II.	Cash flows from investing activities
		Net increase in bank deposits		4,605		-9,491		-14,097		7,918
		Purchases of monetary claims bought		-4,982		-2,099		2,882		-5,867
		Proceeds from sale and maturity of monetary claims bought		3,178		2,233		-945		6,287
		Payment for increase in money trust		-3,079		-2,000		1,079		-4,080
		Proceeds from decrease in money trust		8,571		1,171		-7,399		12,235
		Purchases of marketable securities		-348,230		-385,050		-36,819		-737,705
		Proceeds from sale and maturity of securities		275,231		282,206		6,975		608,882
		Loans receivable made		-99,523		-110,032		-10,509		-219,903
		Collection of loans		164,629		139,812		-24,817		325,731
		Other		6		694		687		2,551

		II (1) Subtotal		408		-82,555		-82,963		-3,950
		(I + II (1))		64,427		-12,140		-76,567		27,057
		Purchase of real property and equipment		-9,501		-3,054		6,447		-19,693
		Proceeds from sales of real property and equipment		1,433		4,161		2,728		2,516
		Payment for acquisition of shares of subsidiary due to the change in consolidation scope		—		-5		-5		—
		Other		58		-765		-823		148

		Cash flows from investing activities		-7,601		-82,218		-74,617		-20,979
III.	Cash flows from financing activities
		Redemption of convertible bonds		—		—		—		-19,854
		Issue of shares to minority shareholders		—		3,060		3,060		—
		Acquisition of treasury stock		-7		-254		-246		-11,598
		Cash dividends paid		-10,272		-10,949		-676		-10,272
		Cash dividends paid to minority shareholders		-122		-175		-53		-122
		Other		-557		-263		294		-452

		Cash flows from financing activities		-10,960		-8,582		2,377		-42,299
IV.	Effects of exchange rate changes on cash and cash equivalents			-545		-1,195		-650		1,454

V.	Increase in cash and cash equivalents			44,911		-21,582		-66,493		-30,816
VI.	Cash and cash equivalents at beginning of the period			401,475		372,383		-29,091		401,475
VII.	Increase in cash and cash equivalents in accordance with the new consolidation			1,131		—		-1,131		1,725

VIII.	Cash and cash equivalents at end of the period			447,518		350,801		-96,716		372,383

Significant Accounting Policies for Semiannual Consolidated Financial Statements

1.		Scope of Consolidation

(1)		Number of consolidated subsidiaries 27

Mitsui Sumitomo Kirameki Life Insurance Company, Limited
MITSUI SUMITOMO INSURANCE Asset Management Company, Limited
Mitsui Sumitomo Insurance Group Holdings (USA), Inc.
Mitsui Sumitomo Insurance Company (Europe), Limited
Mitsui Sumitomo Insurance (Singapore) Pte Ltd.

		Due to the fact that MITSUI SUMITOMO CitiInsurance Life Insurance Co., Ltd. newly became a subsidiary of the Company and thus it has been consolidated to the Company for the consolidated semiannual period under review.

(2)		Descriptions of unconsolidated subsidiaries

		Name of major unconsolidated subsidiaries:

MITSUI SUMITOMO INSURANCE Claims Adjusting Company, Limited
MITSUI SUMITOMO INSURANCE Staffing Service Company, Limited

Companies classified as unconsolidated subsidiaries are immaterial to the extent that they will not affect reasonable decisions regarding financial conditions and business results of the corporate group, in light of the amounts equivalent to interests in their total assets, ordinary income and net income.

Equity Method

As the impact of unconsolidated subsidiaries and affiliates not accounted for by the equity method on the consolidated net income and consolidated retained earnings for semiannual periods (MITSUI SUMITOMO INSURANCE Staffing Service Company, Limited, BPI/MS Insurance Corporation etc.) are negligible and they are in their entirety not significant, they have not been accounted for by the equity method.

Semiannual Accounting Periods for Consolidated Subsidiaries

Mitsui Sumitomo Insurance Group Holdings (USA), Inc. and other 22 consolidated subsidiaries close their books of account at June 30 for semiannual financial reporting purposes. In preparing for the semiannual consolidated financial statements, the semiannual financial statements as of June 30 are used, since the difference of the balance sheet date does not exceed three months.

The necessary adjustments are made for the significant transactions conducted during the period from July 1 to September 30 of the relevant year on a consolidated basis.

4.		Significant Accounting Policies

(1)		Standard and method of valuation for securities

		Standard and method of valuation for securities held by the parent company and domestic consolidated subsidiaries are as follows:

	(1)		Trading securities are valued at market value and cost of sales is calculated using the moving average method.

	(2)		The held-to-maturity securities are valued at amortized cost.

	(3)		Stocks of subsidiaries and affiliate companies are valued at the cost using the moving average method.

	(4)		Marketable securities classified as other securities are valued at market value as of the semiannual balance sheet date. Net unrealized holding gains or losses are reported as a separate component of shareholders’ equity, and cost of sales is calculated using the moving average method.

	(5)		Non-marketable securities classified as other securities are valued at cost using the moving average method or amortized cost method.

	(6)		Securities managed as trust assets and included in the money trust that is independently managed mainly for the purpose of securities investment, is valued at the market value.

		Securities held by overseas consolidated subsidiaries are valued at market value.

(2)		Standard and method of valuation for derivative transactions:

		Derivative transactions are valued at the market value. Provided, however, that derivative transactions that fulfill requirements for transfer treatments permitted for foreign forward exchanges, etc. are accounted for using treatments and that fulfill requirements for exceptional treatments permitted for interest rate swaps are accounted for using exceptional treatments.

(3)		Method of valuation of real property and equipment:

		Real property and equipment held by the parent company and domestic consolidated companies are mainly depreciated at the declining balance method. Provided, however, that buildings (excluding attached equipment thereto) which were acquired on and after April 1, 1998 are depreciated by the straight-line method.

		Real property and equipment held by overseas consolidated companies is principally depreciated at the declining balance method.

(4)		Basis for significant reserves:

		(1) Reserve for bad debts

The reserve for bad debts is provided for possible losses on bad debts at an

			amount determined pursuant to the standards for self-appraisal of assets and the standards for depreciation and provisions of reserves as follows:

			With respect to receivables from obligors who were known to have suffered from collapse of management for whatever reason, legally or as a matter of form such as bankruptcy, special liquidation or suspension of any transaction at the note exchanges or who fell substantially into collapse of management, reserve is provided for by an amount equivalent to the balance obtained by deducting an expected amount to be realized by the enforcement of mortgage and an amount possibly collected by the enforcement of a guarantee from the amount of receivables.

			With respect to receivables from obligors who were deemed highly possible to fall into collapse of management, reserve is provided for by an amount deemed necessary upon overall judgment of their liquidity out of the amount equivalent to the balance obtained by deducting an expected amount to be realized by the enforcement of mortgage and the amount possibly collected by the enforcement of a guarantee from the amount of receivables.

			With respect to receivables other than those stated above, reserve is provided for by the amount obtained by multiplying the amount of receivables by a bad debt rate calculated based on the amount of written-off receivables in the past specified period.

			The division controlling the respective assets has carried out the appraisal of all assets based on the standards for self-appraisal of assets, the business inspection division independent of the relevant division has inspected the results of the above appraisal and the reserves stated above have been provided for by the respective amounts based on the results of the above appraisal.

			Other consolidated subsidiaries provide for an estimated amount for losses on bad debts in consideration of the collectibility of individual receivables.

(2) Reserve for losses on investments

The parent company has provided for possible future losses on securities, the amount deemed necessary based on the parent company’s self-appraisal of assets is provided to reserve for investment loss.

(3) Accrued retirement benefits

			Accrued retirement benefits for employees provide for an amount recognized to be paid as of the end of the semiannual period based on the estimated amount of retirement benefits and the market value of the pension plan assets at the end of the subject semiannual period.

			Unrecognized prior service cost of the parent company is amortized using the straight-line method over the average remaining years of service of employees.

			Unrecognized actuarial gains and losses of the parent company are amortized from the next fiscal year using the straight-line method over periods within the estimated average remaining service years of employees.

			Other consolidated subsidiaries adopt the simplified tax effect accounting method for the purpose of calculating the retirement benefit liabilities.

(4) Accrued bonuses for employees

The parent company and consolidated subsidiaries provide for an estimated amount payable at the end of semiannual consolidated period for accrued bonuses for employees.

(5) The reserve for loss on sale of loans

The parent company provides for an estimated amount of loss on sale of loans at the end of the semiannual consolidated period in preparation for possible loss that might be incurred in the future due to a drop in the collateral value of loans sold to Cooperative Credit Purchasing Company, Ltd.

(6) Reserve for loss on investments in real estate

The parent company provides for an estimated amount of loss at the end of the semiannual period, which is prepared to be paid for possible losses incurred in connection with investment transactions of real property.

(7) Price fluctuation reserve

The parent company and life insurance consolidated subsidiaries provide for the price fluctuation reserve for losses arising out of fluctuations in prices of shares, etc. under the provisions of Article 115 of the Insurance Business Law.

(5)		Translation standards for significant assets and liabilities denominated in foreign currencies:

		Assets and liabilities denominated in foreign currencies are translated into Japanese yen at the rate of the spot rate exchange as of the semiannual balance sheet date. Unrealized translation gain or loss is stated as income or loss. Assets and liabilities of overseas consolidated subsidiaries are translated into Japanese yen at the rate of the spot rate exchange as of the semiannual balance sheet date, and income and expenses are translated into Japanese yen at the rate of the average exchange during the period. Unrealized translation gain or loss is stated as translation adjustments of the shareholders’ equity and minority interests in the accompanying consolidated financial statements.

(6)		Accounting for consumption tax, etc.:

		Consumption tax, etc. is accounted under the tax exclusive method by the parent company and domestic consolidated subsidiaries except that consumption tax relating to loss adjustment expense, operating, general and administrative expenses of the parent company is accounted under the tax inclusive method. Nondeductible consumption tax in respect of assets is included in other assets payments and amortized in equal installments over a period of five years.

(7)		Accounting for significant leases:

		Finance leases of the parent company and domestic consolidated subsidiaries, except for those in which ownership is deemed to be transferred to the lessee, are accounted for as operating leases, that is, the rental of real property.

(8)		Significant hedge accounting:

		The parent company applies deferred hedges to the profit and loss resulting from stock option transactions, which are to be entered into in order to hedge exchange fluctuations in connection with holding of shares. In addition, exceptional treatments of deferred hedges or interest rate swaps are applied to the interest rate swap transactions which are to be entered into in order to hedge risks arising from cash flow fluctuations of loans and bonds due to fluctuations in interest

			rates.

			The effectiveness of hedging is judged every six-month period based on comparisons between hypothetical total of market fluctuations or cash flow fluctuations concerned with the hedging and total market fluctuations and cash flow fluctuations of hedging vehicles from the start of hedging until the effectiveness evaluation. Provided, however, that hedging transactions in which it is apparent that a high correlation is recognized between a hedging and the hedging vehicle and hedging transactions that fulfill requirements for exceptional treatments permitted for interest rate swaps, are excluded from hedging effectiveness evaluation.

	(9)		Matters relating to tax-effect accounting:

			Amounts of tax payment and adjustment of income taxes for the semiannual period is calculated at the amount to be paid during the six months ended September 30, 2001, on the basis of reserve and reversal of reserve for loss on overseas investments and reserve for special amortization through the method of appropriation of profits scheduled during the semiannual consolidated period.

	(10)		Accounting for deferred assets under Article 113 of the Insurance Business Law:

			The amount to be amortized of deferred assets under Article 113 of the Insurance Business Law is calculated in accordance with the laws and regulations, and the provisions of the Articles of Incorporation of life insurance subsidiaries.


5.		Cash and Cash Equivalents in the Semiannual Consolidated Statements of Cash Flows

		Cash and cash equivalents consist of cash on hand, cash in banks which can be withdrawn on demand, and short-term investments, such as time deposits, etc., with a maturity of three months or less after the acquisition.

Additional Information

1.		Credit derivative transactions were stated according to guaranty of liabilities until the year ended March 31, 2002. However, it has been possible to calculate the reasonable value for the credit derivative transactions from the six months ended September 30, 2002, and such value is stated in the accompanying semiannual balance sheet. As a result, ordinary profit and net income for the six months ended September 30, 2002 decreased by ¥7,470 million, compared with those using the previous calculation method. Further, customers’ guarantees liability and guarantees outstanding decreased by ¥509,782 million, respectively.

2.		“Accounting for treasury stock and reversal of legal reserve” (Corporate Accounting Standards No.1) has been applied for the six months ended September 30, 2002. This adoption had no impact on income and loss of the six months ended September 30, 2002. Due to amendments to the Rules for Semiannual Financial Statements, the category of shareholders’ equity of the semiannual financial statements for the six months ended September 30, 2002 has been prepared in accordance with the Rules for the Semiannual Financial Statements, as amended.

Notes

(Semiannual Consolidated Balance Sheets)


1.	The accumulated amount of depreciation of real property and equipment is ¥278,528 million and the advanced depreciation of real property and equipment is ¥23,043 million.

2.	(1)	Among loans receivables, receivables from obligors who are under collapse of management are ¥59 million and receivables in delay are ¥14,644 million.

		Receivables from obligors who are under collapse of management mean loans receivables which fall under any of the events as listed in Article 96, Section 1, Item 3 (i) through (v) or as stipulated in Article 96, Section 1, Item 4 of the Enforcement Regulations of the Corporate Income Tax Law (Government Ordinance No. 97 of 1965) among loans receivables with respect to which accrued interest is not stated because it is impossible to expect collection or payment of principal or interest due to the fact that the payment of principal or interest has not been rendered during a substantial period or for any other reasons.

		Receivables in delay mean loans receivables other than those from obligors who are under collapse of management and those with respect to which interest payment has been exempted at its discretion for the purpose of reconstructing or assisting in obligors.

	(2)	Among loans receivables, receivables in arrears for three months or more amounts to ¥860 million.

		Receivables in arrears for three months or more mean loans receivables concerning which payment of principal or interest is in arrears for three months or more from the day next following the stated payment date and which do not fall under receivables from obligors who are under collapse of management or receivables in arrears.

	(3)	Among loans receivables, receivables to which eased loan conditions were granted amount to ¥19,234 million.

		Receivables to which eased loan conditions were granted mean loans receivables concerning which such arrangements as will be favorable to obligors including reduction or exemption of interest, postponement of interest payment or grant of grace period for the principal, abandonment of debts or others have been made, and which do not fall under receivables from obligors who are under collapse of management, receivables in delay or receivables in arrears for three months or more.

	(4)	Total of receivables from obligors who are under collapse of management, receivables in delay, receivables in arrears for three months or more, and receivables to which eased conditions were granted amounts to ¥34,799 million.

3.	Assets pledged as collateral comprise ¥10,541 million. This includes the security for deposits of ¥125 million as well as the substitution for the margins of futures transactions.


			4.			Securities include the loan in the aggregate amount of ¥90,662 million by the agreement of loan for consumption.

			5.			Other assets include deferred assets of ¥2,203 million of Article 113 of the Insurance Business Law.

			6.			The outstanding loan commitments amounts to ¥530 million.

(Semiannual Consolidated Statement of Income)

The details of business expenses are as follows:


Agent commission, etc:		¥118,813 million
Salaries:		¥56,905 million

			Business expenses are the aggregated amount of loss adjustment expenses, operating, general and administrative expenses, and commission and brokerage expenses in the accompanying semiannual consolidated statement of income.

	2.		“Other” of Extraordinary income is comprised of gain on disposal of real property and equipment of ¥2,982 and reversal of reserve for bad debts of ¥84 million.

	3.		“Other” of Extraordinary losses is comprised of costs incurred with the merger of the parent company and domestic consolidated subsidiaries in an amount of ¥1,737 million, loss on devaluation of buildings of ¥1,013 million due to a material drop in the market price of buildings and loss on disposal of real property and equipment of ¥790 million.

(Semiannual Consolidated Statement of Retained Earnings)

Bonuses to officers are bonuses payable for Directors.

(Semiannual Consolidated Cash Flows)

Cash and cash equivalents as of September 30, 2002 were reconciled to the amounts reported in the consolidated balance sheet as follows:


Cash and bank deposits:		¥365,957 million
Call loans:		¥10,000 million
Monetary claims bought:		¥44,058 million
Time deposits with maturities of more than three months:		-¥66,487 million
Monetary claims bought other than cash equivalents:		-¥3,272 million
Securities included in cash equivalents:		¥545 million

Cash and cash equivalents:		¥350,801 million

Cash flows from investing activities include cash flows arising from asset management business for insurance business.

Segment Information

Business segment information

Six months ended September 30, 2002 (from April 1, 2002 to September 30, 2002)


								(Millions of yen)
		Non-life insurance		Life insurance
		business		business		Total		Eliminations		Consolidated

Ordinary income and ordinary income and expenses
(1) Ordinary income to third parties			886,052		64,626		950,679		378		950,300
(2) Intergroup ordinary income			895		—		895		895		—

	Total		886,947		64,626		951,574		1,273		950,300

Ordinary expenses			842,354		64,549		906,904		1,273		905,630

Ordinary profit			44,592		77		44,670		—		44,670

(Notes)	(1)	Business segments are determined based on the actual condition of businesses in the parent company and consolidated subsidiaries.

	(2)	The major businesses in each business segment are as follows:


Non-life insurance business:		Underwriting business and asset management business for non-life insurance
Life insurance business:		Underwriting business and asset management business for life insurance

(3)

The amount stated in the column “Eliminations” of ordinary income to third parties for the six months ended September 30, 2002 represents the amount transferred, as a result that the reserve for underwriting reserves which has been classified as ordinary expenses for the life insurance business segment is included in and stated as the reversal of underwriting reserves on the semiannual consolidated balance sheet, and the reversal of the reserve for outstanding claims which has been classified as ordinary income for the life insurance business segment is included in and stated as the reserve for outstanding claims on the semiannual consolidated statement of income.

Geographical segment information

Six months ended September 30, 2002 (from April 1, 2002 to September 30, 2002)

Since the ratio of “Japan” accounts for 90% or more of the accumulation of ordinary income and the accumulation of assets of all segments, respectively, any geographical segment information is omitted to be stated.

Overseas sales

Six months ended September 30, 2002 (from April 1, 2002 to September 30, 2002)

Since the overseas sales (ordinary income) accounts for less than 10% of the consolidated net sales (ordinary income), overseas sales is omitted to be stated herein.

Lease Transactions

For the six months ended
September 30, 2001
(April 1, 2001 — September 30, 2001)

1.		Finance lease transactions except for those agreements which stipulate the transfer of ownership of the leased assets to the lessee

(1)		The pro forma amounts of the acquisition costs, accumulated depreciation and net book value of the leased assets as of September 30, 2001 were as follows:


(Millions of yen)
Acquisition costs
Accumulated depreciation
Net book value
Equipment
5,582
4,332
1,249

		The acquisition costs shown above represent the aggregate future minimum lease payments because such payments were immaterial to the net book value of real property and equipment at September 30, 2001.

(2)		Future minimum lease payments outstanding as of September 30, 2001 are summarized as follows:


Due in one year or less		¥795 million
Due after one year		453 million

Total		¥1,249 million

		The future minimum lease payments shown above represent the total lease payments including the interest portion thereon because such payments were immaterial to the net book value of real property and equipment at September 30, 2001.

(3)		Lease payments and depreciation of leased assets are shown below:


Lease payments		¥570 million
Depreciation		¥570 million

(4)		Method of calculation of depreciation

		Depreciation of leased assets is calculated by the straight-line method over the respective lease terms assuming a residual value of zero.

2.		Future minimum lease payments operating leases outstanding as of September 30, 2001 are summarized as follows:


Due in one year or less		¥260 million
Due after one year		397 million

Total		¥658 million

For the six months ended
September 30, 2002
(April 1, 2002 — September 30, 2002)

1.		Finance lease transactions except for those agreements which stipulate the transfer of ownership of the leased assets to the lessee

(1)		The pro forma amounts of the acquisition costs, accumulated depreciation and net book value of the leased assets as of September 30, 2002 were as follows:


(Millions of yen)
Acquisition costs
Accumulated depreciation
Net book value
Equipment
2,742
2,317
424

(Note) Same as that for the six months ended September 30, 2001.

(2)

Future minimum lease payments outstanding as of September 30, 2002 are summarized as follows:


Due in one year or less		¥303 million
Due after one year		121 million

Total		¥424 million

Same as that for the six months ended September 30, 2001.

(3)

Lease payments and depreciation of leased assets are shown below:


Lease payments		¥292 million
Depreciation		¥292 million

(4)		Method of calculation of depreciation

		Same as that for the six months ended September 30, 2001.

Future minimum lease payments for operating leases outstanding as of September 30, 2002 are summarized as follows:


Due in one year or less		¥595 million
Due after one year		1,244 million

Total		¥1,840 million

For the year ended March 31, 2002
(April 1, 2001 — March 31, 2002)

1.		Finance lease transactions except for those agreements which stipulate the transfer of ownership of the leased assets to the lessee

(1)		The pro forma amounts of the acquisition costs, accumulated depreciation and net book value of the leased assets as of March 31, 2002 were as follows:


(Millions of yen)
Acquisition costs
Accumulated depreciation
Net book value
Equipment
3,079
2,361
718

		The acquisition costs shown above represent the aggregate future minimum lease payments because such payments were immaterial to the net book value of real property and equipment at March 31, 2002.

(2)		Future minimum lease payments outstanding as of March 31, 2002 are summarized as follows:


Due in one year or less		¥475 million
Due after one year		243 million

Total		¥718 million

		The future minimum lease payments shown above represent the total lease payments including the interest portion thereon because such payments were immaterial to the net book value of real property and equipment at March 31, 2002.

(3)		Lease payments and depreciation of leased assets are shown below:


Lease payments		¥1,447 million
Depreciation		¥1,447 million

(4)		Method of calculation of depreciation

		Same as that for the six months ended September 30, 2001.

Future minimum lease payments for operating leases outstanding as of March 31, 2002 are summarized as follows:


Due in one year or less		¥382 million
Due after one year		480 million

Total		¥862 million

Securities

Information on held-to-maturity debt securities for which market value is available


		(Millions of yen)

		As of September 30, 2001						As of September 30, 2002						As of March 31, 2002

		Carrying		Market		Unrealized		Carrying		Market		Unrealized			Carrying		Market		Unrealized
Types of securities		value		value		gain (loss)		value		value		gain (loss)			value		value		gain (loss)

Bonds and debentures			51,719		54,801		3,082		50		50		0			342		342		0
Foreign securities			18,952		19,332		380		4,024		4,458		433			6,006		6,606		600

	Total		70,671		74,134		3,462		4,074		4,508		433			6,348		6,948		600

Information on other securities for which market value is available


		(Millions of yen)

		As of September 30, 2001						As of September 30, 2002						As of March 31, 2002

		Acquisition		Carrying		Unrealized		Acquisition		Carrying		Unrealized		Acquisition		Carrying		Unrealized
Types of securities		costs		value		gain (loss)		costs		value		gain (loss)		costs		value		gain (loss)

Bonds and debentures			1,849,696		1,944,057		94,360		2,098,921		2,184,032		85,110		2,001,557		2,066,982		65,424
Stock			966,808		1,717,556		750,747		917,760		1,609,150		691,390		934,182		1,843,020		908,838
Foreign securities			731,639		793,599		61,959		750,872		837,887		87,014		738,975		835,982		97,006
Other			34,947		34,049		–898		32,325		31,574		–750		28,251		28,573		322

	Total		3,583,093		4,489,262		906,169		3,799,880		4,662,645		862,765		3,702,966		4,774,559		1,071,592


As of September 30, 2001	As of September 30, 2002	As of March 31, 2002

The Company recognized impairment losses of ¥16,202 million for other securities for which market value is available. Impairment losses have been recognized in the case of all securities declining more than 50% in market value compared with acquisition costs. Impairment losses have been recognized in the case of securities declining not less than 30% but less than 50% in market value, only those other than in the case of perspective on recovery of market value is recognized.	The Company recognized impairment losses of ¥8,678 million for other securities for which market value is available. Impairment losses have been recognized in the case of all securities declining more than 50% in market value compared with acquisition costs. Impairment losses have been recognized in the case of securities declining not less than 30% but less than 50% in market value, only those other than in the case of perspective on recovery of market value is recognized.	The Company recognized impairment losses of ¥22,341 million for other securities for which market value is available. Impairment losses have been recognized in the case of all securities declining more than 50% in market value compared with acquisition costs. Impairment losses have been recognized in the case of securities declining not less than 30% but less than 50% in market value, only those other than in the case of perspective on recovery of market value is recognized.

Information on and amount of securities which are not carried at market value:

As of September 30, 2001

(1)

Held-to-maturity debt securities


Foreign securities:		¥291 million
Other:		¥21,708 million

		(Note)

		Transferable deposits which are included in cash and bank deposits, and commercial paper which is included in monetary claims bought on the semiannual consolidated balance sheet, are accounted for as “Other”.


(2)		Other securities


Bonds and debentures:		¥7,287 million
Stock:		¥38,899 million
Foreign securities:		¥42,339 million
Other:		¥8,876 million

		(Note)

		Commercial papers, etc., which are accounted for as monetary claims bought on the semiannual consolidated balance sheet, are included in “Other”.

As of September 30, 2002

(1)

Held-to-maturity debt securities


Foreign securities:		¥376 million
Other:		¥88,407 million

		(Note)

		Transferable deposits which are included in cash and bank deposits, and commercial paper which is included in monetary claims bought on the semiannual consolidated balance sheet, are accounted for as “Other”.

(2)		Other securities


Bonds and debentures:		¥4,953 million
Stock:		¥41,902 million
Foreign securities:		¥37,300 million
Other:		¥4,963 million

		(Note)

		Beneficiary rights for claimable asset fund, which are treated as monetary claims bought on the semiannual balance sheet, are included in “Other”.

As of March 31, 2002

(1)

Held-to-maturity debt securities


Foreign securities:		¥362 million
Other:		¥47,953 million

		(Note)

		Transferable deposits which are included in cash and bank deposits, and commercial paper which is included in monetary claims bought on the semiannual consolidated balance sheet, are accounted for as “Other”.


(2)		Other securities


Bonds and debentures:		¥4,944 million
Stock:		¥42,614 million
Foreign securities:		¥38,841 million
Other:		¥5,062 million

		(Note)

		Beneficiary rights for claimable asset fund, which are treated as monetary claims bought on the balance sheet, are included in “Other”.

Money Trust

1.		Held-to-maturity money trusts:

		Not applicable.

2.		Money trusts other than those that are intended for investment and held-to-maturity:


As of September 30, 2001	As of September 30, 2002	As of March 31, 2002

There are no monetary trusts to be solely invested which are valued by the market value. The monetary trust intended for joint investment represented as the acquisition costs in the semiannual balance sheet is ¥76 million.	There are no monetary trusts to be solely invested which are valued by the market value. The monetary trust intended for joint investment represented as the acquisition costs in the semiannual balance sheet is ¥97 million.	There are no monetary trusts to be solely invested which are valued by the market value. The monetary trust intended for joint investment represented as the acquisition costs in the balance sheet is ¥1,023 million.

Contract Amount, Market Value and Unrealized Gain(Loss) of Derivative Transactions


				(Millions of Yen)
				As of September 30, 2001							As of September 30, 2002							As of March 31, 2002

Types of				Contract			Market		Unrealized		Contract			Market		Unrealized		Contract			Market		Unrealized
Securities	Types of contracts			Amount			Value		Gain/(Loss)		Amount			Value		Gain/(Loss)		Amount			Value		Gain/(Loss)

Currency		Forward exchange contracts
			Sales contracts:		30,670			30,839		-168		26,855			27,251		-396		31,849			32,467		-617
			Purchased contracts:		1,019			1,100		80		3,678			3,676		-2		7,002			7,009		7
		Currency option contracts
			Sales contracts:		—			—		—		3,492			1		18		3,021			0		1
					(—	)						(19	)						(2	)
			Purchased contracts:		2,346			83		-15		3,472			2		-34		3,011			159		56
					(99	)						(36	)						(102	)

Interest		Interest option contracts
			Sales contracts:		9,420			70		155		19,720			102		148		8,910			69		156
					(225	)						(251	)						(225	)
			Purchased contracts:		3,000			76		-120		13,500			101		-122		3,000			73		-123
					(196	)						(223	)						(196	)
		Interest swap contracts			65,153			220		220		52,655			192		192		54,166			309		309

Stock		Stock price index futures
			Sales contracts:		—			—		—		—			—		—		1,158			1,110		48
		Stock price index option contracts
			Sales contracts:		—			—		—		450			6		4		3,050			7		44
					(—	)						(10	)						(51	)
			Purchased contracts:		—			—		—		—			—		—		2,700			42		-2
					(—	)						(—	)						(43	)
		Stock price swap contracts			1,840			-94		-94		—			—		—		—			—		—

Bonds		Government bond futures
			Sales contracts:		—			—		—		280			280		-0		—			—		—
		Government bond over-the-counter option contracts
			Sales contracts:		—			—		—		9,333			3		14		7,392			1		16
					(—	)						(17	)						(18	)

Credit		Credit derivatives
			Sales contracts:		—			—		—		533,076			-7,772		-7,772		—			—		—
			Purchased contracts:		—			—		—		23,294			77		77		—			—		—

Other		Weather derivative contracts
			Sales contracts:		65			28		59		30			20		3		9			16		9
					(87	)						(24	)						(26	)
			Purchased contracts:		30			6		-26		1			2		0		6			14		-3
					(33	)						(2	)						(17	)
			Other:		—			152		152		—			408		408		—			614		614
		Natural disaster derivative contracts
			Sales contracts:		130			2		2		170			7		2		190			2		5
					(5	)						(10	)						(7	)
		Economic index derivative contracts
			Sales contracts:		0			21		—		0			—		21		0			7		14
					(21	)						(21	)						(21	)

		Total			113,675			32,507		246		690,010			24,365		-7,436		125,466			41,905		537

(Notes)

1. Figures in parentheses of the above list represent the option premiums.

2. Any derivative transactions, to which the hedge accounting applied, are excluded.

Information of Loans Receivable under Risk Control


		(Millions of Yen)
		(A)			(B)			Fluctuation		(C)			Fluctuation
		As of Sep. 30, 2001			As of Sep. 30, 2002			(B)-(A)		As of Mar. 31, 2002			(B)-(C)

Receivables from obligors who are under collapse of management			687			59			-627		5,501			-5,441

Receivables in delay			18,626			14,644			-3,981		14,743			-99

Receivables in arrears for three months or more			601			860			258		742			117

Receivables to which eased loan conditions were granted			18,080			19,234			1,154		12,915			6,319

	Total		37,996			34,799			-3,196		33,903			896

Ratio to loan balance			4.7	%		4.7	%		—		4.4	%		0.3	%

Loan balance (for reference)			807,289			732,717			-74,571		764,426			-31,708

Note: Each of the receivables means as follows:

(1)		Receivables from obligors who are under collapse of management:

		Receivables from obligors who are under collapse of management mean loans receivables which fall under any of the events as listed in Article 96, Section 1, Item 3 (i) through (v) or as stipulated in Article 96, Section 1, Item 4 of the Enforcement Regulations of the Corporate Income Tax Law (Government Ordinance No. 97 of 1965) among loans receivables with respect to which accrued interest is not stated because it is impossible to expect collection or payment of principal or interest due to the fact that the payment of principal or interest has not been rendered during a substantial period or for any other reasons.

(2)		Receivables in delay:

		Receivables in delay mean loans receivable other than those from obligors who are under collapse of management and those with respect to which interest payment has been exempted at the discretion of the obligors for the purpose of reconstructing or assisting in the obligors.

(3)		Receivables in arrears for three months or more:

		Receivables in arrears for three months or more mean loans receivable concerning which payment of principal or interest is in arrears for three months or more from the day next following the stated payment date and which do not fall under receivables from obligors who are under collapse of management or receivables in arrears.

(4)		Receivables to which eased loan conditions were granted:

		Receivables to which eased loan conditions were granted mean loans receivable concerning which such arrangements as will be favorable to obligors including reduction or exemption of interest, postponement of interest payment or grant of grace period for the principal, abandonment of debts or others have been made, and which do not fall under receivables from obligors who are under collapse of management, receivables in delay or receivables in arrears for three months or more.

- End -

4. [Translation in English]

December 3, 2002

To whom it may concern:


	Name of the Company:		Mitsui Sumitomo Insurance Company, Limited (the “Company”)

	Name of Representative:		Hiroyuki Uemura, President and Director (Securities Code No. 8752)

NOTICE REGARDING THE ACQUISITION
OF THE COMPANY’S TREASURY STOCK
(Acquisition of treasury stock of the Company pursuant to Article 210 of the Commercial Code of Japan)

The Company hereby announces that pursuant to the resolution for the acquisition of treasury stock passed at the Ordinary General Meeting of Shareholders held on June 27, 2002, it resolved, at the meeting of the Board of Directors of the Company held today, to acquire treasury stock as follows:

Particulars


1.	Types of shares to be acquired:	Shares of common stock of the Company

2.	Total number of shares to be acquired:	7,000,000 shares (Maximum)

3.	Aggregate amount of the acquisition cost:	¥4,200,000,000 (Maximum)

4.	Acquisition period:	Until December 27, 2002

5.	Method of acquisition:	Purchases in the market by a trust and banking company pursuant to a trust agreement to be entered into with the trust and banking company

- End -


	Any inquiry relating hereto should be made to: Mitsui Sumitomo Insurance Company, Limited Toru Hasegawa, Manager, Shareholder Relations Section Shareholder Relations & Legal Dept Tel: (03)3297-4694 Takuya Yoda, Manager, Corporate Communications Section Corporate Communications Dept Tel: (03)3297-6705

5. [Translation in English]

December 26, 2002

To whom it may concern:


	Name of the Company:	Mitsui Sumitomo Insurance Company, Limited (the “Company”)
	Name of Representative:	Hiroyuki Uemura, President and Director (Securities Code No. 8752)

NOTICE REGARDING PURCHASE OF
THE COMPANY’S TREASURY STOCK IN THE MARKET
(Acquisition of treasury stock pursuant to Article 210 of the Commercial Code of Japan)

The Company hereby announces that it has implemented purchases of shares in the market for the acquisition of treasury stock of the Company pursuant to the provisions of Article 210 of the Commercial Code of Japan as follows.

Particulars


1.	Purchase period:	From December 10, 2002 to December 25, 2002

2.	Number of shares purchased:	7,000,000 shares

3.	Aggregate amount of purchase costs:	¥3,607,772,000

4.	Method of the purchases:	Purchases in the market on the Tokyo Stock Exchange


(Reference 1)		Contents of the acquisition of treasury stock, which was resolved at the 85th ordinary general meeting of shareholders held on June 27, 2002:
	•	Class of shares purchased:	Common stock of the Company
	•	Total number of shares purchased:	8,000,000 shares (Maximum)
	•	Aggregate amount of purchase costs:	¥6,500,000,000 (Maximum)

(Reference 2)		Contents of the acquisition of treasury stock, which was resolved at the meeting of the Board of Directors held on December 3, 2002:
	•	Class of shares purchased:	Common stock of the Company
	•	Total number of shares purchased:	7,000,000 shares (Maximum)
	•	Aggregate amount of purchase costs:	¥4,200,000,000 (Maximum)

(Reference 3)		Aggregate number of treasury stock of the Company purchased on or before December 25, 2002:
	•	Total number of shares purchased:	7,000,000 shares
	•	Aggregate amount of purchase costs:	¥3,607,772,000

- End -


	Any inquiry relating hereto should be made to: Mitsui Sumitomo Insurance Company, Limited Toru Hasegawa, Manager, Shareholder Relations Section Shareholder Relations & Legal Dept Tel: (03)3297-4694 Takuya Yoda, Assistant General Manager, Corporate Communications Dept Tel: (03)3297-6705

The Company was renamed as of October 1, 2001, as a result of the merger of Mitsui Marine and Fire Insurance Company, Limited (“Mitsui”) as a subsisting company and The Sumitomo Marine & Fire Insurance Company, Limited (“Sumitomo”). In order to compare with the business results for the six months ended September 30, 2002, the business results for the six months ended September 30, 2001 are represented, in principle, by the accumulated figures of business results of Sumitomo and Mitsui without any adjustment. The business results for the year ended March 31, 2002 are represented by the accumulated figures of Sumitomo for the period from April 1, 2001 through September 30, 2001 and the Company for April 1, 2001 through March 31, 2002 without any adjustment.

Provided, however, that net income per share, the average number of shares in issue, shareholders’ equity per share and the number of shares issued as at the end of the fiscal year and the first semiannual period are represented without accumulating business results of respective companies.

Any amounts less than the stated unit have been disregarded and ratio is rounded to the nearest whole number. Any negative amounts appear with the mark (-). (The same shall be applied hereinafter.)