Mitsui Sumitomo Insurance 6K 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 July, 2003

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
Significant Accounting Policies for Preparation of Consolidated Financial Statements
Securities
Money Trusts

Information furnished on this form:

Table of Contents

[Summary Translation in English]

“YUKASHOUKEN-HOUKOKUSHO”
The Japanese Language Annual Securities Report submitted to the Chief of the Kanto Local Finance Bureau of the Ministry of Finance of Japan on June 27 , 2003 (All financial information was prepared in accordance with generally accepted accounting principles in Japan.)

[Translation in English]

“Annual Consolidated Financial Statements, etc.”
Annual Consolidated Financial Statements for the Year Ended March 31, 2003, prepared in accordance with generally accepted accounting principles in Japan , which was filed with the Chief of the Kanto Local Finance Bureau as part of “YUKASHOUKEN-HOUKOKUSHO”

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: August 15, 2003	By:	/s/ Nobutaka Hayasaki

		Nobutaka Hayasaki 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. [Summary Translation in English]

YUKASHOUKEN-HOUKOKUSHO

Annual securities report submitted to the Chief of the Kanto Local Finance Bureau of the ministry of Japan on June 27, 2003, which includes the follows:

86th Fiscal Year Annual Securities Report (From: April 1, 2002 To: March 31, 2003)

[Cover page]

PART I. [INFORMATION CONCERNING THE COMPANY]

I. [OUTLINE OF THE COMPANY]

1. [Changes in Major Business Index of the Company]

2. [Outline]

3. [Contents of Business]

4. [Description of Affiliated Companies]

5. [Description of Employees]

II. [DESCRIPTION OF BUSINESS]

1. [Outline of Business Results, etc.]

2. [Conditions of Underwriting Insurance Policy and Asset Management]

3. [Matters to be Dealt With]

4. [Material Contracts Relating to Management]

5. [Research and Development Activities]

III. [CONDITIONS OF FACILITIES]

1. [Description of Investments in Facilities]

2. [Conditions of Major Facilities]

3. [Plans for Installation and Retirement, etc., of Facilities]

IV. [DESCRIPTION OF THE FILING COMPANY]

1. [Description of Shares, etc.]

2. [Acquisition, etc. of Treasury Stock]

3. [Dividend Policy]

4. [Trends in Stock Prices]

5. [Conditions of Directors and Officers]

V. [FINANCIAL CONDITIONS]

1. [Consolidated Financial Statements, etc.]

2. [Financial Statements, etc.]

VI. [OUTLINE OF OPERATION OF SHARES OF THE FILING COMPANY]

VII. [SUPPLEMENTARY INFORMATION OF THE FILING COMPANY]

PART II. [INFORMATION CONCERNING THE GUARANTOR, ETC. OF THE FILING COMPANY]

Auditors’ Report

-End-

2. [Translation in English]

Annual Consolidated Financial Statements, etc.

(1) [Consolidated Financial Statement]

- 1 - [Consolidated Balance Sheet]


Consolidated years							For the fiscal year ended					For the fiscal year ended
							March 31, 2002					March 31, 2003
							(As of March 31, 2002)					(As of March 31, 2003)

							Amount					Amount
Accounts					No.		(Millions of yen)			Ratio (%)		(Millions of yen)			Ratio (%)

(Assets)
Cash deposits and savings								415,024			5.67		366,953			5.67
Call loans								328			0.00		5,000			0.08
Futures bought								—			—		1,999			0.03
Monetary claims bought								17,774			0.24		38,874			0.60
Money trusts								38,639			0.53		26,803			0.41
						*2
Investments in securities						*4		4,887,186			66.73		4,542,021			70.12
						*5
Loans						*3,8		764,426			10.44		727,462			11.23
Property and equipment						*1,4		309,985			4.23		325,237			5.02
Other assets						*6		367,845			5.02		402,171			6.21
Deferred tax assets								1,334			0.02		35,560			0.55
Customers’ liability under acceptance and guarantees						*7		547,388			7.47		25,519			0.39
Bad debts reserve								-26,018			-0.35		-19,977			-0.31
Reserve for loss on investments								-8			-0.00		-12			-0.00

			Total Assets					7,323,905			100.00		6,477,614			100.00

(Liabilities)
Underwriting funds								4,931,667			67.34		4,992,877			77.08
	Outstanding claims							(465,029	)				(509,149	)
	Underwriting reserve							(4,466,638	)				(4,483,727	)
Convertible bonds								85,098			1.16		22,250			0.34
Other liabilities						*4		165,176			2.26		210,868			3.25
Reserve for annuity and retirement benefits								163,544			2.23		152,203			2.35
Accrued bonuses for employees								11,278			0.16		12,126			0.19
Reserve for loss on sales of loans								1,619			0.02		—			—
Reserve for loss on investments in real estate								1,220			0.02		1,220			0.02
Reserve under the special law								20,662			0.28		6,830			0.11
	Reserve for price fluctuation							(20,662	)				(6,830	)
Deferred tax liabilities								121,608			1.66		7,483			0.12
Liabilities under acceptances and guarantees						*7		547,388			7.47		25,519			0.39

Total Liabilities								6,049,264			82.60		5,431,379			83.85

(Minority Shareholders’ Interest) Minority Shareholders’ Interest								4,713			0.06		4,278			0.07

(Shareholders’ Equity)
Common stock								128,476			1.75		—			—
Additional paid-in capital								81,991			1.12		—			—
Consolidated retained earnings								383,410			5.24		—			—
Unrealized gains on investments, net of tax								688,873			9.41		—			—
Translation adjustments								-1,220			-0.02		—			—

				Total				1,281,531			17.50		—			—
Treasury stock								-11,603			-0.16		—			—
Total shareholders’ equity								1,269,927			17.34		—			—

Common stock						*9		—			—		128,476			1.98
Capital surplus								—			—		81,991			1.27
Retained earnings								—			—		404,279			6.24
Unrealized gains on investments, net of tax								—			—		449,101			6.93
Translation adjustments								—			—		-5,922			-0.09
Treasury stock						*10		—			—		-15,971			-0.25
Total shareholders’ equity								—			—		1,041,955			16.08

		Total Liabilities, Minority Shareholders’
		Interest and Shareholders’ Equity						7,323,905			100.00		6,477,614			100.00

-2-[Consolidated Statement of Income]


Consolidated years							For the fiscal year ended				For the fiscal year ended
							March 31, 2002				March 31, 2003
							(April 1, 2001 - March 31, 2002)				(April 1, 2002 - March 31, 2003)

							Amount				Amount
Accounts					No.		(Millions of yen)		Ratio (%)		(Millions of yen)		Ratio (%)

Ordinary Income and Expenses
Ordinary Income								1,439,244		100.00		1,920,379		100.00
	Underwriting income							1,348,911		93.72		1,801,464		93.81
			Net premiums written					935,690				1,303,946
			Deposit premiums from policyholders					210,145				306,757
			Investment income on deposit premiums from policyholders					52,638				65,442
			Life-insurance premiums					92,099				124,516
			Reversal of underwriting reserve					57,627				—
			Other underwriting income					710				801
	Investment income							87,056		6.05		115,418		6.01
			Interest and dividends received					99,228				129,332
			Investment gain on money trusts					1,357				1,375
			Investment gain on trading securities					—				467
			Gain on sales of securities					34,701				47,143
			Gain on redemption of securities					1,467				2,014
			Other investment income					2,940				526
			Transfer of investment income on deposit premiums from policyholders					-52,638				-65,442
	Other ordinary income							3,275		0.23		3,495		0.18

Ordinary Expense								1,388,951		96.51		1,870,821		97.42
	Underwriting expenses							1,160,229		80.62		1,537,363		80.06
			Net losses paid					499,810				646,557
			Losses adjustment expenses			*1		46,494				59,783
			Commissions and collection expenses			*1		168,999				228,342
			Maturity refunds to policyholders					403,098				538,281
			Dividends to policyholders					271				79
			Losses paid for life-insurance					10,234				16,871
			Provision for outstanding claims					30,966				28,939
			Provision for underwriting reserve					—				17,503
			Other underwriting expenses					353				1,005
	Investment expenses							26,310		1.83		79,979		4.16
			Loss on money trusts					2,718				3,851
			Loss on sales of securities					4,490				17,252
			Loss on valuation of securities					17,005				50,647
			Loss on redemption of securities					57				23
			Derivative transaction expenses					765				3,025
			Provision for reserve for investment loss					—				3
			Other investment expenses					1,272				5,174
		Operating expenses and general and administrative expenses				*1		199,198		13.84		247,709		12.90
		Other ordinary expenses						3,213		0.22		5,769		0.30
			Interest paid					895				879
			Loss on bad debts					7				69
			Amortization of deferred assets under
			Article 113 of the Insurance Business
			Law					198				396
			Investment loss due to equity method					—				546
			Other ordinary expenses					2,112				3,877

Ordinary profit								50,292		3.49		49,557		2.58

Extraordinary Income and Losses
	Extraordinary income							2,174		0.15		21,854		1.14
			Gain on sales of real estate and equipment					1,092				4,425
			Reversal of reserve under the special law					—				13,832
				Reserve for price fluctuation				—				13,832
			Other extraordinary income					1,081				3,596
	Extraordinary losses					*2		29,592		2.06		16,003		0.83
			Loss on sales of real estate and equipment					2,612				2,570
			Provision for reserve under the special law					2,776				—
				Reserve for price fluctuation				2,776				—
			Other extraordinary loss			*3		24,202				13,432

Income before income taxes								22,874		1.58		55,408		2.89
Income tax and residents tax								6,376		0.44		34,846		1.81
Adjustments to income taxes								32		0.00		-12,753		-0.66
Minority interests								348		0.02		502		0.03

Net income								16,118		1.12		32,812		1.71

-3-

[Consolidated Statement of Retained Earnings]


Consolidated years						For the fiscal year ended			For the fiscal year ended
						March 31, 2002			March 31, 2003
						(April 1, 2001 - March 31 2002)			(April 1, 2002 - March 31 2003)

Accounts				No.		Amount (Millions of yen)			Amount (Millions of yen)

Balance of consolidated retained earnings at beginning of fiscal year							214,660			—
Increase in consolidated retained earnings							157,987			—
	Increase in retained earnings at beginning of fiscal year related to newly consolidated subsidiaries						(62	)		(—	)
	Increase in retained earnings due to merger						(157,924	)		(—	)
Decrease in consolidated retained earnings							5,355			—
	Cash dividends						(5,300	)		(—	)
	Bonuses to officers				*1		(55	)		(—	)
Net income							16,118			—
Balance of consolidated retained earnings at end of fiscal year							383,410			—
			(Capital surplus)
Balance of capital surplus at beginning of fiscal year							—			81,991
	Balance of capital surplus at beginning of fiscal year						(—	)		(81,991	)
Balance of capital surplus at end of fiscal year							—			81,991
		(Retained Earnings)
Balance of retained earnings at beginning of fiscal year							—			383,410
	Balance of consolidated retained earnings at beginning of fiscal year						(—	)		(383,410	)
Increase in retained earnings							—			32,812
	Net income						(—	)		(32,812	)
Decrease in retained earnings							—			11,942
	Cash dividends						(—	)		(10,949	)
	Bonuses to officers				*1		(—	)		(84	)
	Decrease related to accounting changes of consolidated subsidiaries						(—	)		(631	)
	Decrease related to decrease in number of consolidated subsidiaries						(—	)		(277	)
Balance of retained earnings at end of the fiscal year							—			404,279

-4-

[Consolidated Statement of Cash Flows]


Consolidated years						For the fiscal year			For the fiscal year
						ended March 31, 2002			ended March 31, 2003
						(April 1, 2001 - March 31 2002)			(April 1, 2002 - March 31 2003)

Accounts					No.	Amount (Millions of yen)			Amount (Millions of yen)

	I.	Cash flows from operating activities
		Income before income taxes					22,874			55,408
		Depreciation and amortization					19,100			22,549
		Amortization of consolidated adjustment accounts					—			318
		Increase in outstanding claims					30,966			28,939
		Increase in underwriting reserve					-58,393			15,633
		Increase in bad debts reserve					-4,678			-6,000
		Increase in reserve for loss on investments					-137			3
		Increase in annuity and retirement benefits					-5,073			-11,173
		Increase in accrued bonuses for employees					3,541			940
		Increase in reserve for loss on sale of loans					-1,031			-1,619
		Increase in reserve for loss on investment in real estate					-1,089			—
		Increase in reserve for price fluctuation					2,776			-13,832
		Interest and dividend received					-99,228			-129,332
		Gain or loss in connection with securities (losses (-))					-14,517			18,969
		Interest payable					895			879
		Foreign exchange gains or losses (losses)					-1,037			-1,287
		Gain or loss in connection with real estate and equipment (losses (-))					2,752			-636
		Investment gain or loss due to equity method (losses (-))					—			546
		Losses paid for life-insurance collected by real estate					—			-24,196
		Increase in other assets (excluding investment activities, financing activities, etc.)					4,277			-14,530
		Increase in other liabilities (excluding investment activities, financing activities, etc.)					-26,015			6,691
		Other					8,589			5,291

				Subtotal			-115,428			-46,438
		Interest and dividends received					101,235			137,046
		Interest paid					-1,225			-889
		Income tax paid					-4,334			-13,839

		Cash flows from operating activities					19,752			75,878
	II.	Cash flows from investing activities
		Net increase in deposit at banks					3,167			16,121
		Purchases of monetary claims bought					-2,531			-6,099
		Proceeds from sales and redemption of monetary claims bought					4,218			5,692
		Purchase of money trust					-2,080			-15,200
		Proceeds from sales of money trust					7,719			32,508
		Purchases of securities					-588,284			-730,143
		Proceeds from sales and redemption of securities					481,801			664,744
		Payment for loans					-155,029			-204,441
		Collection of loans					223,984			239,115
		Others					2,551			3,147

			II - -1- Subtotal				-24,481			5,446
				(I + II -1-)			(-44,234	)		81,325
		Purchase of property and equipment					-13,687			-10,239
		Proceeds from sales of property and equipment					1,366			6,040
		Others					148			966

		Cash flows from investing activities					-36,654			2,213
	III.	Cash flows from financing activities
		Redemption of convertible bonds					-19,854			-62,848
		Acquisition of treasury stock					-11,590			-4,368
		Cash dividends paid					-5,300			-10,949
		Cash dividends paid to minority shareholders					-75			-549
		Others					-452			-124

		Cash flows from financing activities					-37,272			-78,840
	IV.	Effect of exchange rate changes on cash and cash equivalents					2,404			919

	V.	Increase in cash and cash equivalents					-91,275			172
	VI.	VI. Cash and cash equivalents at beginning of fiscal year					237,175			372,383
	VII.	Increase in cash and cash equivalents related to newly consolidated subsidiary					593			—
	VII.	Increase in cash and cash equivalents related to acquisition of business					225,889			—
	IX.	Decrease in cash and cash equivalents related to exclusion of consolidation					—			-1,780

	X.	Cash and cash equivalents at end of the fiscal year					372,383			370,775

Significant Accounting Policies for Preparation of Consolidated Financial Statements


	For the fiscal year ended	For the fiscal year ended
	March 31, 2002	March 31, 2003
Items	(April 1, 2001 – March 31, 2002)	(April 1, 2002 – March 31, 2003)

1. Scope of Consolidation	(1) Number of major consolidated subsidiaries 26	(1) Names of major consolidated subsidiaries: 25
	Since major consolidated subsidiaries are stated in “4 Description of Affiliated Companies of Part I. Outline of the Company”, they are omitted to be stated herein.	Since major consolidated subsidiaries are stated in “4 Description of Affiliated Companies of Part I. Outline of the Company”, they are omitted to be stated herein.

	Due to the merger of The Sumitomo Marine & Fire Insurance Co., Ltd. and Mitsui Marine and Fire Insurance Co., Ltd. and the incorporation of a holding company in the U.S., Mitsui Sumitomo Kirameki Life Insurance Company, Limited (former corporate name: Sumitomo Marine Yu-Yu Life Insurance Co., Ltd.) and 11 other companies have been consolidated to the Company for the fiscal year under review. On the other hand, Mitsui Mirai Insurance Co., Ltd., which had been a consolidated subsidiary of the Company, is excluded from the consolidation for the fiscal year under review, due to the merger with Sumitomo Marine Yu-Yu Life Insurance Co., Ltd. and dissolution thereafter.	MITSUI SUMITOMO INSURANCE Asset Management Company, Limited has been excluded from the consolidation for the fiscal year under review, since it 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. and dissolved thereafter.

	(2) Descriptions of unconsolidated subsidiaries	(2) Descriptions of unconsolidated subsidiaries

	Name of major unconsolidated subsidiaries:	Name of major unconsolidated subsidiaries:
	MITSUI SUMITOMO INSURANCE Claims Adjusting Company, Limited	MITSUI SUMITOMO INSURANCE Claims Adjusting Company, Limited
	MITSUI SUMITOMO INSURANCE Staffing Service 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, net income and retained earnings.	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, net income and retained earnings.

		(3) The Company holds 51% voting rights of Mitsui Sumitomo CitiInsurance Life Insurance Co. Ltd. However, as the said company is a company under the joint control with other joint corporation, it is not included in the category of subsidiaries.


	For the fiscal year ended	For the fiscal year ended
	March 31, 2002	March 31, 2003
Items	(April 1, 2001 – March 31, 2002)	(April 1, 2002 – March 31, 2003)

2. 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 the fiscal year under review (MITSUI SUMITOMO INSURANCE Staffing Service Company, Limited, BPI/MS Insurance Corporation etc.) is negligible and they are in their entirety not significant, they have not been accounted for by the equity method.	(1) Number of affiliates accounted for by the equity method: 2 Name of major affiliates: Mitsui Sumitomo CitiInsurance Life Insurance Co. Ltd. Mitsui Sumitomo Asset Management Company, Limited Mitsui Sumitomo CitiInsurance Life Insurance Co. Ltd. and Mitsui Sumitomo Asset Management Company, Limited have been newly included in affiliates, they are included in the category of affiliated accounted for by the equity method.

		(2) As the impact of unconsolidated subsidiaries and affiliates not accounted for by the equity method on the consolidated net income and retained earnings for the fiscal year under review (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.

3. Accounting Periods for Consolidated Subsidiaries	Mitsui Sumitomo Insurance Group Holdings (USA), Inc. and other 22 consolidated subsidiaries close their books of account on December 31 for financial reporting purposes. In preparing for the consolidated financial statements, the financial statements as of March 31 are used, since the difference of the balance sheet date does not exceed three months.	Mitsui Sumitomo Insurance Group Holdings (USA), Inc. and other 22 consolidated subsidiaries close their books of account at December 31 for financial reporting purposes. In preparing for the consolidated financial statements, the financial statements as of March 31 are used, since the difference of the balance sheet date does not exceed three months.
	The necessary adjustments are made for significant transactions conducted during the period from January 1 to March 31 of the relevant year on a consolidated basis.	The necessary adjustments are made for the significant transactions conducted during the period from January 1 to March 31 of the relevant year on a consolidated basis.

4. Significant Accounting Policies	(1) Valuation policies and methods of securities:	(1) Valuation policies and methods of securities:
	Valuation policies and methods of securities held by the company which files the annual report (“filing company”) and domestic consolidated subsidiaries are as follows:	Valuation policies and methods of securities held by the company which files the annual report (“filing company”) and domestic consolidated subsidiaries are as follows:
	- -1- Securities held to maturity are valued at amortized cost. -2- Stocks of subsidiaries and affiliates are valued at cost using the moving average method. -3- Other securities with fair values are valued at fair value as at March 31, 2002. Net unrealized gains or losses are reported as a separate component of stockholders’ equity, and cost of sales is calculated using moving average method.	-1- Trading securities are valued at fair value. Cost of sales is calculated using moving average method. -2- Securities held to maturity are valued at amortized cost. -3- Stocks of unconsolidated subsidiaries and affiliates not accounted for by the equity method are valued at cost using the moving average method.


	For the fiscal year ended	For the fiscal year ended
	March 31, 2002	March 31, 2003
Items	(April 1, 2001 – March 31, 2002)	(April 1, 2002 – March 31, 2003)

	- -4- Other securities without fair values are valued at cost using the moving average method or amortized cost. -5- Securities managed as a major component of trust assets in the money trust are valued at fair value. Securities held by overseas consolidated subsidiaries are principally valued at fair value.	-4- Other securities with fair values are valued at fair value as at March 31, 2003. Net unrealized gains or losses are reported as a separate component of stockholders’ equity, and cost of sales is calculated using moving average method. -5- Other securities without fair values are valued at cost using the moving average method or amortized cost. -6- Securities managed as a major component of trust assets in the money trust are valued at fair value. Securities held by overseas consolidated subsidiaries are principally valued at fair value.

	(2) Valuation policies and methods of derivative transactions: Derivative financial instruments are valued at fair value. Provided, however, that derivative transactions that meet the certain criteria of transfer treatments of forward exchange transactions are accounted for under transfer treatments, and interest rate swaps that meet the certain criteria are accounted for under exceptional methods.	(2) Valuation policies and methods of derivative transactions: Same as that for the fiscal year ended March 31, 2002.
		(Additional Information) Credit derivative transactions, which were treated in substantially the same manner as guarantee liabilities until the previous consolidated fiscal year, are stated in the balance sheet at their reasonable value from the consolidated fiscal year under review, because it now became possible to calculate their reasonable value. As a result, in comparison with those prepared according to the previous method, ordinary income and income before income taxes decreased by ¥6,824 million, and customers’ liabilities under acceptance and guarantees and liabilities under acceptance and guarantees decreased by ¥533,126 million, respectively.

	(3) Valuation policies and methods of real property and equipment: Depreciation of property and equipment held by the filing company and domestic consolidated companies is computed using the declining-balance methods, except for buildings (excluding fixtures) acquired after April 1, 1998, for which the straight-line method is applied. Depreciation of property and equipment held by overseas consolidated companies is principally computed using the straight-line method.	(3) Valuation policies and methods of real property and equipment: Depreciation of property and equipment held by the filing company and domestic consolidated companies is computed using the declining-balance methods, except for buildings (excluding fixtures) acquired after April 1, 1998, for which the straight-line method is applied. Properties acquired for the purpose of collection of claims paid and planned to be sold are valued at cost or market whichever is lower basis, and they have not been amortized.


	For the fiscal year ended	For the fiscal year ended
	March 31, 2002	March 31, 2003
Items	(April 1, 2001 – March 31, 2002)	(April 1, 2002 – March 31, 2003)

		Depreciation of property and equipment held by overseas consolidated companies is principally computed using the straight-line method.

	(4) Standard for significant reserve: -1- Bad debt reserve The filing company and life insurance consolidated subsidiaries have established a bad debts reserve in preparation for possible losses on bad debts under the standard for self-assessment of assets and the policy for depreciation and provisions of assets. A reserve for bad debts for loans to debtors who are legally or formally deemed to be experiencing financial difficulties such as bankruptcy, special liquidation or whose notes are under suspension at clearing houses, and loans for debtors who are substantially bankrupt are provided for based on the amount remaining after deducting the collateral’s resale value and amounts collectible from guarantees. A bad debt reserve for loans to debtors likely to experience financial difficulties in the future is provided based on the amount remaining after deducting the collateral’s resale value and amounts collectible from guarantees considering comprehensively debtors’ abilities to repay the entire outstanding debts. For loans other than those described above, a bad debt reserve is calculated by multiplying actual historical bad debt ratios times outstanding balances. Reserve for loans and receivables are provided for based on assessment under the assets self-assessment standard. The assessment was performed by the departments responsible for each asset. The independent internal audit department reviews those results. �� Other domestic consolidated subsidiaries performed the assessment of assets based on a similar standard for self-assessment of the filing company. Reserve for loans and receivables are provided for based on the assessment. Overseas consolidated subsidiaries provide for an estimated amount for losses on bad debts in consideration of the collectibility of individual debts.	(4) Standard for significant reserve: -1- Bad debt reserve Same as that for the fiscal year ended March 31, 2002.

	-2- Reserve for loss on investments: The filing company has established a reserve for loss on investments as a result of management assessment for future possible losses on investments.	-2- Reserve for loss on investments: Same as that for the fiscal year ended March 31, 2002.


	For the fiscal year ended	For the fiscal year ended
	March 31, 2002	March 31, 2003
Items	(April 1, 2001 – March 31, 2002)	(April 1, 2002 – March 31, 2003)

	-3- Reserve for annuity and retirement benefit The filing company has established to provide for future retirement benefits of employees based on the estimated retirement benefit obligation and plan assets at March 31, 2002. Prior service costs of the filing company are amortized using the straight-line method over certain periods (4 years) within the estimated average remaining service years of employees. Actuarial gains and losses of the filing company are amortized from the next fiscal year using the straight-line method over certain periods (10 yearns) 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 obligations.	-3- Reserve for annuity and retirement benefit Same as that for the fiscal year ended March 31, 2002.

	-4- Accrued bonuses for employees The filing company and consolidated subsidiaries provide for accrued bonuses for employees based on estimated amounts to be paid at March 31, 2002.	-4- Accrued bonuses for employees Same as that for the fiscal year ended March 31, 2002.

	-5- The reserve for loss on sale of loans The filing company provides for an estimated amounts of loss on sale of loans at March 31, 2002 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 investment in real estate The filing company provides for reserve for loss on investments in real estate based on the estimated amounts at March 31, 2002 for future possible losses relating to future real estate transactions.	-5- Reserve for loss on investment in real estate Same as that for the fiscal year ended March 31, 2002.

	-7- Reserve for price fluctuation The filing company and consolidated life-insurance subsidiaries provide for reserve for price fluctuation which is recognized under Article 115 of the Insurance Business Law for possible losses arising from price fluctuations of investment securities.	-6- Reserve for price fluctuation Same as that for the fiscal year ended March 31, 2002.


	For the fiscal year ended	For the fiscal year ended
	March 31, 2002	March 31, 2003
Items	(April 1, 2001 – March 31, 2002)	(April 1, 2002 – March 31, 2003)

	(5) Translation standards for significant assets and liabilities denominated in foreign currencies:	(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 at March 31, 2002. Unrealized translation gain or loss is stated as income or loss.	Same as that for the fiscal year ended March 31, 2002.
	Assets and liabilities of overseas consolidated subsidiaries are translated into Japanese yen at the rate of the spot rate exchange at March 31, 2002, and income and expenses are translated into Japanese yen at the average rates of exchanges during the fiscal year. 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 taxes: Consumption taxes are principally accounted for under the “Zei Nuki” (tax exclusive) method by the filing company and consolidated domestic subsidiaries except those relating to loss adjustment expenses and operating and general and administrative expenses of the filing company, which are accounted for under the “Zei Komi” (tax inclusive) method. Non-deductible consumption tax relating to assets is included in other assets and amortized in equal installments over a period of five years.	(6) Accounting for consumption taxes: Same as that for the fiscal year ended March 31, 2002.

	(7) Accounting for significant finance leases: Finance leases of the filing company and domestic consolidated subsidiaries, except for those in which ownership is considered transferred to the lessee, are accounted for as operating leases similar to the rental of property.	(7) Accounting for significant leases: Same as that for the fiscal year ended March 31, 2002.


	For the fiscal year ended	For the fiscal year ended
	March 31, 2002	March 31, 2003
Items	(April 1, 2001 – March 31, 2002)	(April 1, 2002 – March 31, 2003)

	(8) Accounting for hedge accounting: The filing company adopts deferral hedge accounting method for stock price option contracts for hedging purposes arising from fluctuations in stock prices relating to holding stocks. In addition, interest rate swap contracts for hedging risks, arising from fluctuations in cash flow of loans or bonds relating to fluctuations in interest rates, are accounted for using the deferral hedge accounting method or the exceptional method. Hedging effectiveness is assessed semi-annually by comparing cumulative fluctuations of the prices or cash flows between the hedged items and the hedging instruments during the periods from the hedging start dates to the assessment dates. When hedged items and hedging instruments are highly and clearly interrelated or when interest swap transactions meet the criteria for applying the exceptional method, the assessments for the effectiveness of hedging are omitted.	(8) Accounting for hedge accounting: The filing company adopts the deferral hedge accounting method for stock price option contracts for hedging purposes arising from fluctuations in stock prices relating to holding stocks and currency swap contracts for hedging purposes arising from cash flow fluctuations of foreign-denominated bonds due to fluctuations in foreign exchanges. Interest rate swap contracts for hedging risks, arising from fluctuations in cash flow of loans or bonds relating to fluctuations in interest rates, are accounted for using the deferral hedge accounting method or the exceptional method. Hedging effectiveness is assessed semi-annually by comparing cumulative fluctuations of the prices or cash flows between the hedged items and the hedging instruments during the periods from the hedging start dates to the assessment dates. When hedged items and hedging instruments are highly and clearly interrelated or when interest swap transactions meet the criteria for applying the exceptional method, the assessments for the effectiveness of hedging are omitted.

	(9) Accounting for deferred assets under Article 113 of the Insurance Business Law:	(9) Accounting for deferred assets under Article 113 of the Insurance Business Law:
	The amount of amortization 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.	Same as that for the fiscal year ended March 31, 2002.

		(10) Accounting for treasury stock and reduction of statutory reserves: As a result of the application of the “Accounting Standards regarding Treasury Stock and Reduction of Statutory Reserves (Corporate Accounting Standard No. 1)” for the fiscal year commencing on or after April 1, 2002, the Company has applied the said accounting to the fiscal year under review. No impact is recognized on income and losses for the fiscal year under review due to the application of such accounting. In addition, due to amendments to the Rules for Consolidated Financial Statements, the presentation of shareholders’ equity of the accompanying consolidated balance sheet and the statement of consolidated retained earnings for the fiscal year under review have been prepared in accordance with the Rules for Consolidated Financial Statements as amended.


	For the fiscal year ended	For the fiscal year ended
	March 31, 2002	March 31, 2003
Items	(April 1, 2001 – March 31, 2002)	(April 1, 2002 – March 31, 2003)

		(11) Per share data:
		As a result of the application of the “Accounting Standards regarding Current Net Income Per Share (Corporate Accounting Standards No. 2)” and “Guideline for Application of Accounting Standards Regarding Current Net Income Per Share (Guideline for Application of Corporate Accounting Standards No. 4)” for the consolidated financial statements for the fiscal year commencing on or after April 1, 2002, the financial statements of the filing company have been prepared in accordance with such accounting and guideline for the fiscal year under review.
		Any impact arising from the application of the above accounting standard is stated in the “notes to per share data”.

		(12) Accounting for premiums:
		Mitsui Sumitomo Reinsurance Limited has changed the accounting for premiums from the accrual basis to the statement arrival basis for the fiscal year under review.
		This change was made due to the difficulty in independently estimating premiums, as underwriting of reinsurance policies by Mitsui Sumitomo Reinsurance Limited, a reinsurance company, has increased and based on the judgment that the condition of the said company will be properly presented by stating premiums at the time of arrival of statements indicating an amount of premiums, etc.
		As a result, net premiums written increased by ¥357 million, ordinary profit and income before income taxes increased by ¥42 million, respectively, in comparison with those prepared according to the previous accounting method.
		Any impact on the segment information due to the accounting changes is stated in the relevant part of the segment information.
		In addition, accounting changes in the local accounting standards are retroactively applied to previous years, a decrease in retained earnings at the end of fiscal year arising from such changes are presented as the decrease due to accounting changes in consolidated subsidiary in the consolidated statement of retained earnings.
		Such changes were made due to the determination of necessary information required for the change into the statement arrival basis during the latter semiannual period and accordingly the former accounting method has been applied for the semiannual period ended September 30, 2002.


	For the fiscal year ended	For the fiscal year ended
	March 31, 2002	March 31, 2003
Items	(April 1, 2001 – March 31, 2002)	(April 1, 2002 – March 31, 2003)

		As a result, net premiums written increased by ¥222 million, ordinary profit and income before income taxes for the semiannual period ended September 30, 2003 decreased by ¥336 million, respectively in comparison with those prepared according to the new accounting method.

5. Matters relating to assets and liabilities of consolidated subsidiaries	Assets and liabilities of consolidated subsidiaries are valued in the entirely at fair value.	Same as that for the fiscal year ended March 31, 2002.

6. Matters relating to amortization of adjustments to consolidated account	Adjustments to consolidated account is entirely amortized during the fiscal year that such adjustments have occurred.	Same as that for the fiscal year ended March 31, 2002.

7. Matters relating to appropriation of retained earnings	Consolidated statement of retained earnings is prepared based on the appropriation of retained earnings and losses determined during the consolidated fiscal year.	Same as that for the fiscal year ended March 31, 2002.

8. Cash and Cash Equivalents in the Consolidated Statements of Cash Flows	Cash and cash equivalents consist of cash on hand, deposits 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.	Same as that for the fiscal year ended March 31, 2002.

Notes
(Consolidated Balance Sheet)


For the fiscal year ended March 31, 2002		For the fiscal year ended March 31, 2003
(As of March 31, 2002)		(As of March 31, 2003)

*1. Accumulated depreciation of property and equipment amounted to ¥270,573 million and deferred profit on sales of other properties amounted to ¥23,732 million.		*1. Accumulated depreciation of property and equipment amounted to ¥284,932 million and deferred profit on sales of other properties amounted to ¥22,822 million.

*2. Stocks of non-consolidated subsidiaries and affiliates are as follows:		*2. Stocks of non-consolidated subsidiaries and affiliates are as follows:


Securities (stock):	¥3,090 million	Securities (stock):	¥8,641 million
Securities (foreign securities):	¥8,555 million	Securities (foreign securities):	¥8,184 million
Securities (other securities):	¥3,782 million	Securities (other securities):	¥7,209 million


*3.		*3.
(1) Loans to financially impaired parties and overdue loans amounted to ¥5,501 million and ¥14,743 million, respectively.		(1) Loans to financially impaired parties and overdue loans amounted to ¥78 million and ¥9,561 million, respectively.

Loans to financially impaired parties represent those loans on which accrued interest receivable is not recognized because repayments of principal or interest were overdue for considerable periods and they are regarded as not collectible (excluding the portion of loans that were written off) and which meet the conditions provided in Article 96, section 1-3, 4 of the Corporation Tax Enforcement Order (1965 Government Ordinance No. 97).		Loans to financially impaired parties represent those loans on which accrued interest receivable is not recognized because repayments of principal or interest were overdue for considerable periods and they are regarded as not collectible (excluding the portion of loans that were written off) and which meet the conditions provided in Article 96, section 1-3, 4 of the Corporation Tax Enforcement Order (1965 Government Ordinance No. 97).

Overdue loans represent loans not accruing interest excluding loans that have been granted grace for interest payments for the purpose of restructuring of, or support to debtors in financial difficulty and excludes loans to financially impaired parties.		Overdue loans represent loans not accruing interest excluding loans that have been granted grace for interest payments for the purpose of restructuring of, or support to debtors in financial difficulty and excludes loans to financially impaired parties.

(2) Overdue loans not less than 3 months amounted to ¥742 million.		(2) Overdue loans not less than 3 months amounted to ¥692 million.

Overdue loans not less than 3 months represent loans for which principal or interest was not less than 3 months past after the contractual due date for repayment of principal or interest and excludes loans to financially impaired parties and overdue loans.		Overdue loans not less than 3 months represent loans for which principal or interest was not less than 3 months past after the contractual due date for repayment of principal or interest and excludes loans to financially impaired parties and overdue loans.

(3) Restructured loans amounted to ¥12,915 million.		(3) Restructured loans amounted to ¥21,866 million.

Restructured loans have favorable terms to debtors such as interest exemption or reduction, grace on interest payments, grace on principal repayments, or forgiveness of debts for the purpose of restructuring of or support to debtors in financial difficulty. Loans to financially impaired parties, overdue loans and loans overdue not less than 3 months are excluded.		Restructured loans have favorable terms to debtors such as interest exemption or reduction, grace on interest payments, grace on principal repayments, or forgiveness of debts for the purpose of restructuring of or support to debtors in financial difficulty. Loans to financially impaired parties, overdue loans and loans overdue not less than 3 months are excluded.

(4) Loans to financially impaired parties, overdue loans, overdue loans not less than 3 months, and restructured loans amounted to ¥33,903 million.		(4) Loans to financially impaired parties, overdue loans, overdue loans not less than 3 months, and restructured loans amounted to ¥32,199 million.

*4. Collateralized securities amounted to ¥8,116 million. They included collateral deposits in the amount of ¥125 million stated as other liabilities and deposited assets for overseas operation, etc.		*4. Collateralized securities amounted to ¥25,286 million, collateralized property and equipment amounted to ¥14,168 million. They include collateral for borrowings of special purpose companies, etc. in the amount of ¥9,104 million and deposited assets for overseas operation, etc.

*5. Securities include those which were loaned under loan agreements for consumption in the aggregate amount of ¥76,882 million.		*5. Securities include those which were loaned under loan agreements for consumption in the aggregate amount of ¥63,323 million.


For the fiscal year ended March 31, 2002		For the fiscal year ended March 31, 2003
(As of March 31, 2002)		(As of March 31, 2003)

*6. Other assets include deferred assets of ¥1,587 million under Article 113 of the Insurance Business Law.		*6. Other assets include deferred assets of ¥1,190 million under Article 113 of the Insurance Business Law.

		*7 The Company has extended a guarantee for execution of transactions made by limited partnership. The total of present value of such transactions at March 31, 2003 amounted to - ¥215,688 million, though such amount was not reckoned as customers’ liabilities under acceptance and guarantees and liabilities under acceptance and guarantees since there is no substantial guaranteed amount taking account of collaterals, etc.

		*8 The outstanding balance of loans not extended concerning a loan commitment agreement is ¥1,903 million.

		*9 The aggregate number of shares issued and outstanding of the filing company is 1,479,894,005 shares of common stock.

		*10 Treasury stock held by the consolidated companies amounted to 28,301,836 shares of common stock.

(Consolidated Statement of Income)


For the fiscal year ended March 31, 2002		For the fiscal year ended March 31, 2003
(April 1, 2001 March 31, 2002)		(April 1, 2002 March 31, 2003)

*1. The details of business expenses are as follows:		*1. The details of business expenses are as follows:


Agent commission, etc:	¥174,651 million	Agent commission, etc:	¥230,695 million
Salaries:	¥92,068 million	Salaries:	¥118,964 million
		Amortization of adjustments:
		to consolidated accounts:	¥327 million


Operating expenses are the aggregated amount of loss adjustment expenses, operating expenses and general and administrative expenses, and commissions and collection expenses in the accompanying consolidated statement of income.		Operating expenses are the aggregated amount of loss adjustment expenses, operating expenses and general and administrative expenses, and commissions and collection expenses in the accompanying consolidated statement of income.

*2. Other extraordinary income represents reversal of bad debts reserve of ¥1,030 million, the reversal of reserve for investment loss of ¥14 million and the reversal of reserve for loss on sales of loans of ¥36 million.		*2. Other extraordinary income represents reversal of bad debts reserve.

3. Other extraordinary loss represent miscellaneous merger expenses of ¥24,070 million and the valuation losses of land and buildings due to significant declines in fair values of ¥132 million.		3. Other extraordinary losses represent miscellaneous merger expenses of ¥7,726 million, extra retirement pay due to the outplacement support system of ¥4,491 million, the valuation losses of land and buildings due to significant declines in fair values of ¥1,215 million.

(Consolidated Statement of Retained Earnings)


For the fiscal year ended March 31, 2002		For the fiscal year ended March 31, 2003
(April 1, 2001 March 31, 2002)		(April 1, 2002 March 31, 2003)

*1. Officers’ bonuses are for Directors only.		*1. Officers’ bonuses are for Directors only.

(Consolidated Cash Flows)


For the fiscal year ended March 31, 2002		For the fiscal year ended March 31, 2003
(April 1, 2001 March 31, 2002)		(April 1, 2002 March 31, 2003)

1. Cash and cash equivalents as of March 31, 2002 were reconciled to the amounts reported in the consolidated balance sheet as follows:		1. Cash and cash equivalents as of March 31, 2003 were reconciled to the amounts reported in the consolidated balance sheet as follows:

(As of March 31, 2002)

(As of March 31, 2003)

Cash deposits and savings:

415,024 million

Cash deposits and savings:

366,953 million

Call loans

328 million

Call loans

5,000 million

Futures bought:

1,999 million

Monetary claims bought:

17,774 million

Monetary claims bought:

38,874 million

Money trusts:

26,803 million

Time deposits with maturities

of over 3 months:

–¥

57,719 million

of over 3 months:

–¥

40,754 million

Monetary claims bought other

Monetary claims bought other than

than cash equivalents:

–¥

3,452 million

cash equivalents:

–¥

3,810 million

Securities included in cash

Money trusts other than

equivalents:

427 million

cash equivalents:

24,291 million

Cash and cash equivalents:

372,383 million

Cash and cash equivalents:

370,775 million


2. Important non-fund transactions:		2. Important non-fund transactions:
(1) The Company succeeded the following assets and liabilities of The Sumitomo Marine & Fire Insurance Co., Ltd., with which the filing company merged. Capital stock and additional paid-in capital of the filing company which increased due to the merger are ¥60,020 million and ¥35,549 million, respectively.		(1) Properties acquired for the purpose of collection of claims paid and planned to be sold amounted to ¥33,339 million.


Assets:		¥2,984,732 million
(Securities:		¥1,846,423 million)
Liabilities:		¥2,723,405 million
(Underwriting funds:		¥2,402,008 million)


(2) The amount of assets and liabilities for finance leases, which are newly stated in the accompanying balance sheet for the fiscal year under review are ¥682 million, respectively.		(2) The amount of assets and liabilities for finance leases, which are newly stated in the accompanying balance sheet for the fiscal year under review are ¥684 million, respectively.

3. Cash flows from investing activities include cash flows arising from asset management business for insurance business.		3. Same as that for the fiscal year ended March 31, 2002.

(Lease Transactions)

For the fiscal 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
	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		¥1,079 million
		Depreciation		¥1,079 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 fiscal year ended March 31, 2003
(April 1, 2002 – March 31, 2003)

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, 2003 were as follows:

(Millions of yen)


Acquisition costs
Accumulated depreciation
Net book value

Equipment
	1,405
	1,162
	243

Same as that for the fiscal year ended March 31, 2002.

(2)

Future minimum lease payments outstanding as of March 31, 2003 are summarized as follows:


		Due in one year or less		¥196 million
		Due after one year		¥ 46 million

		Total		¥243 million

Same as that for the fiscal year ended March 31, 2002.

(3)

Lease payments and depreciation of leased assets are shown below:


		Lease payments		¥473 million
		Depreciation		¥473 million

(4)

Method of calculation of depreciation

Same as that for the fiscal year ended March 31, 2002.

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

Operating lease transaction

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

For the fiscal year ended March 31, 2003
(April 1, 2002 – March 31, 2003)

Operating lease transaction

Future minimum lease payments for operating leases outstanding as of March 31, 2003 are summarized as follows:


		Due in one year or less		¥707 million
		Due after one year		¥707 million

		Total		¥1,415 million

(Securities)

Securities

Trading securities:

Not applicable.

Securities held to maturity with fair value:


(Millions of yen)

		For the fiscal year ended March 31, 2002						For the fiscal year ended March 31, 2003
		(As of March 31, 2002)						(As of March 31, 2003)
Types of securities
		Consolidated				Unrecognized		Consolidated				Unrecognized
		carrying value		Fair value		gain or loss		carrying value		Fair value		gain or loss

Securities, of which fair value is more than consolidated carrying value	Bonds and debentures		50		50		0		—		—		–
	Foreign securities		2,937		3,537		600		2,027		2,097		70
	Other		—		—		—		—		—		–

	Subtotal		2,987		3,587		600		2,027		2,097		70

Securities, of which fair value is not more than consolidated carrying value	Bonds and debentures		292		292		—		—		—		—
	Foreign securities		3,068		3,068		-0		1,005		1,005		—
	Other		—		—		—		—		—		—

	Subtotal		3,361		3,361		-0		1,005		1,005		—

Total			6,348		6,948		600		3,033		3,103		70

Other securities with fair value:


(Millions of yen)

		For the fiscal year ended March 31, 2002						For the fiscal year ended March 31, 2003
		(As of March 31, 2002)						(As of March 31, 2003)
Types of securities
		Acquisition		Consolidated		Unrecognized		Acquisition		Consolidated		Unrecognized
		costs		carrying value		gain or loss		costs		carrying value		gain or loss

Securities, of which consolidated carrying value is more than acquisition costs	Bonds and debentures		1,755,255		1,824,720		69,465		2,062,826		2,170,515		107,688
	Stock		813,385		1,741,126		927,740		677,682		1,211,915		534,233
	Foreign securities		629,372		729,930		100,558		606,738		707,174		100,436
	Other		18,383		19,512		1,128		39,255		40,123		867

	Subtotal		3,216,397		4,315,290		1,098,892		3,386,503		4,129,729		743,226

Securities, of which consolidated carrying value is not more than acquisition costs	Bonds and debentures		246,301		242,261		-4,040		27,765		27,320		-445
	Stock		120,796		101,894		-18,902		177,676		144,887		-32,788
	Foreign securities		109,603		106,052		-3,551		124,190		114,994		-9,196
	Other		9,867		9,061		-806		25,459		23,797		-1,662

	Subtotal		486,569		459,268		-27,300		355,091		310,999		-44,092

Total			3,702,966		4,774,559		1,071,592		3,741,594		4,440,728		699,133

For the fiscal year ended March 31, 2002
(As of March 31, 2002)

The filing company recognized impairment losses of ¥15,522 million for other securities with fair values.

With respect to the filing company and its domestic consolidated subsidiaries, impairment losses have been recognized in the case of all securities declining not less than 50% in fair 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 fair value, only those other than in the case of perspective on recovery of fair value is recognized.

For the fiscal year ended March 31, 2003
(As of March 31, 2003)

The filing company recognized impairment losses of ¥48,571 million for other securities with fair values.

Other securities sold during the fiscal year ended March 31, 2003:

(Millions of yen)

For the fiscal year ended March 31, 2002

For the fiscal year ended March 31, 2003

Types of securities

(April 1, 2001 - March 31, 2002)

(April 1, 2002 - March 31, 2003)

Total gain

Total loss

Total gain

Total loss

Sales price

on sales

Sales price

on sales

on sales

Other securities

299,461

34,701

4,587

435,740

47,143

17,252

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

The loss on sales stated in the above table is represented as “loss on sales of securities” after setting-off the reversal of reserve for loss on investment amounting to ¥97 million.

For the fiscal year ended March 31, 2003
(April 1, 2002 – March 31, 2003)

Information on securities which are not value at fair value and carrying value in the consolidated balance sheet:

For the fiscal year ended March 31, 2002
(As of March 31, 2002)

(1)

Securities held to maturity


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

(Note)
Transferable deposits which are included in cash on hand and deposits in banks, and commercial paper which is included in monetary claims bought on the 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)
“Others” include beneficiary rights for loan credits trust, which are accounted for as monetary claims bought in the consolidated balance sheet.

For the fiscal year ended March 31, 2003
(As of March 31, 2003)

(1)

Securities held to maturity


		Foreign securities:		¥306 million
		Other:		¥83,152 million

(2)

Other securities


		Bonds and debentures:		¥5,535 million
		Stock:		¥41,251 million
		Foreign securities:		¥24,079 million
		Other:		¥6,086 million

(Note)
“Others” include beneficiary rights for loan credits trust, which are accounted for as monetary claims bought in the consolidated balance sheet.

Securities of which purpose has been changed:

For the fiscal year ended March 31, 2002

Securities held to maturity (consolidated carrying value was ¥29,574 million) were changed and re-classified as other securities. This was due to the fact that a surviving company received the securities held to maturity as other securities of the merged company in accordance with its operation policy, upon the merger of life-insurance consolidated companies. As a result, securities increased by ¥1,271 million and unrealized gains on investments, net of tax increased by ¥811 million, respectively.

For the fiscal year ended March 31, 2003

Redemption amounts of securities with maturity and securities held to maturity, which are classified as “Other securities”:


(Millions of yen)

		For the fiscal year ended March 31, 2002								For the fiscal year ended March 31, 2003
Types of securities		(As of March 31, 2002)								(As of March 31, 2003)

				Due after		Due after						Due after		Due after
				one year		five years						one year		five years
		Due in one		and in five		and in ten		Due after		Due in one		and in five		and in ten		Due after
		year or less		years or less		years or less		ten years		year or less		years or less		years or less		ten years

National government bonds			11,329		56,624		133,751		26,204		9,333		54,974		249,820		20,733
Municipal bonds			40,995		392,875		104,711		2,821		62,341		316,096		93,282		1,677
Corporate bonds			135,302		596,492		505,298		65,847		131,582		606,426		579,418		77,711
Foreign securities			58,134		373,066		206,828		56,454		41,329		375,329		223,985		48,040
Other securities			47,995		456		453		1,277		83,156		276		159		1,152

	Total		293,757		1,419,514		951,043		152,605		327,744		1,353,105		1,146,666		149,314


(Note)		Transferable deposits which are accounted for as cash on hand and deposits in banks and commercial paper which is accounted for as monetary claims bought on the consolidated balance sheet are included in “Other securities”

(Money trusts)

Money Trusts

Money trusts intended for investment:

(Millions of yen)

For the fiscal year ended March 31, 2002

For the fiscal year ended March 31, 2003

Type

(As of March 31, 2002)

(As of March 31, 2003)

Unrealized gain

Consolidated

(loss) included in

Consolidated

(loss) included in

carrying value

Income and Loss

carrying value

Income and Loss

Money trusts

37,615

-4,549

24,291

-925

2.		Money trusts held to maturity: Not applicable.

3.		Money trusts other than those are intended for investment and held to maturity:


For the fiscal year ended March 31, 2002		For the fiscal year ended March 31, 2003
(April 1, 2001 - March 31, 2002)		(April 1, 2002 - March 31, 2003)

There are no monetary trusts to be solely invested which are valued by the fair value. The monetary trust intended for joint investment represented as the acquisition costs in the balance sheet is ¥1,023 million.		There are no monetary trusts to be solely invested which are valued by the fair value. The monetary trust intended for joint investment represented as the acquisition costs in the balance sheet is ¥2,512 million.

(Derivative transactions)

Matters relating to transactions:


For the fiscal year ended March 31, 2002		For the fiscal year ended March 31, 2003
(April 1, 2001 - March 31, 2002)		(April 1, 2002 - March 31, 2003)

1. Policy for transactions and purpose of utilizing derivative transactions: The Company is utilizing derivative transactions to hedge the Company’s exposure to the market risk in connection with price, foreign exchange and interest rate fluctuations in asset management. In addition to hedging purposes, the Company is utilizing derivative transactions to conservatively obtain investment income within the extent of a certain volume of transactions. 2. Contents of transaction: Derivative transactions, which the Company utilized for hedging purpose during the fiscal year under review, consist of forward foreign exchange contracts, currency option contracts, interest rate swap contracts, bond and equity futures, stock option contracts and stock price index futures. In addition, derivative transactions, which the Company utilized to obtain income, consist of forward foreign exchange contracts, currency option contracts, interest rate swap contracts, interest rate cap contracts, swaptions, bond and equity futures, bond and equity over-the-counter option contracts, stock price index option contracts and weather derivative contracts, etc. 3. Risks of transactions: Generally, derivative transactions involve risks related to market price fluctuation of the object of transactions (market risks) and risks related to the default of contracts due to bankruptcy, etc. of counterparty (credit risks). Weather derivative contracts include risks arising from fluctuation of the events on which respective derivatives are based. Similarly, derivative transactions, which are utilized by the Company, involve market risks related to price fluctuation of the object of transactions. However, in case of derivative transactions for hedging purposes, market risk is abated as price fluctuation of assets in kind and that of derivative transactions are reversed. The Company utilizes no leveraged derivative transactions, which is a special transaction whose ratio of fluctuation of the market price of the relevant transaction to the price fluctuation of the object of the transaction is large. In addition, to avoid credit risks resulting from the default of contracts, the Company only executes derivative transactions with financial institutions of high credit and diversifies transactions within such financial institutions. 4. Risk management system for transactions: The Company establishes internal regulations related to authority concerning all transactions including derivative transactions as well as risk management regulations, and executes and manages derivative transactions pursuant to these regulations. The Company completely divides the division in charge of execution of derivative transactions, and the division in charge of back-office business; and derivative transactions are checked daily by both divisions, mutually. The management supervision division checks positions (balance, unrealized profits and losses, etc.) of all derivative transactions and reports such state to the Executive Committee of the Company monthly.		1. Policy for transactions and purpose of utilizing derivative transactions: The Company is utilizing derivative transactions mainly to hedge the Company’s exposure to the market risk in connection with price, foreign exchange and interest rate fluctuations in asset management. In addition to hedging purposes, the Company is utilizing derivative transactions, taking into account the risk of contracts, to conservatively obtain investment income. 2. Contents of transaction: Derivative transactions, which the Company utilized for hedging purpose during the fiscal year under review, consist of forward foreign exchange contracts, currency option contracts, currency swap contracts, interest rate swap contracts, bond and equity over-the-counter option contracts, stock price index futures and stock price index option contracts. In addition, derivative transactions, which the Company utilized to obtain income, consist of forward foreign exchange contracts, currency option contracts, interest rate swap contracts, interest rate cap contracts, swaptions, bond and equity futures, bond and equity futures option contracts, stock price index option contracts, credit derivative contracts and weather derivative contracts, etc. 3. Risks of transactions: Generally, derivative transactions involve risks related to market price fluctuation of the object of transactions (market risks) and risks related to fluctuation of the occurrence of events which derivative transactions have been based on. In addition, risks for the default of contracts due to bankruptcy, etc. of counterparty (credit risks) is included. Similarly, derivative transactions, which are utilized by the Company, involve market risks related to price fluctuation of the object of transactions. However, in case of derivative transactions for hedging purposes, market risk is abated as price fluctuation of cash assets and that of derivative transactions are reversed. The Company utilizes no leveraged derivative transactions, which is a special transaction whose ratio of fluctuation of the market price of the relevant transaction to the price fluctuation of the object of the transaction is large. In addition, to avoid credit risks resulting from the default of contracts, the Company only executes derivative transactions with financial institutions of high credit and diversifies transactions within such financial institutions. 4. Risk management system for transactions: Same as that for the fiscal year ended March 31, 2002.

Matters relating to fair value, etc. of transactions:
Contract Amount, Fair Value and Unrealized Gain(Loss) of Derivative Transactions

The contract amounts, etc. for derivative contracts are generally based on the nominal contract amounts or the estimated calculated amount of the principals. Therefore, such amounts do not always represent market risks and credit risks, etc.

With respect to option contracts stated in each list below, option premiums are represented in the parentheses of lower column of the “contract amounts”.

(1) Currency

(Millions of Yen)


						For the fiscal year ended March 31, 2002							For the fiscal year ended March 31, 2003
						(As of March 31, 2002)							(As of March 31, 2003)

											Unrealized Gain										Unrealized Gain
											/(Loss)										/(Loss)
Types of contracts			Contract Amount						Fair Value		on valuation		Contract Amount						Fair Value		on valuation

						1 year or more										1 year or more

Transactions other than market transactions
Forward foreign exchange contracts:
Short:
	US$			24,457			—			24,991		- 533		—			—			—		—
	Euro			7,391			—			7,475		- 83		—			—			—		—
Sell:
	US$			2,827			—			2,830		2		—			—			—		—
	Euro			4,174			—			4,179		4		—			—			—		—
Currency option contracts:
	Short:
	Call options US$			675			—			0		0		—			—			—		—
				(1	)		(—	)						(—	)		(—	)		—
	Put options US$			2,346			—			0		0		—			—
				(1	)		(—	)						(—	)		(—	)
Sell:
	Call options US$			1,838			—			159		109		—			—			—		—
				(50	)		(—	)						(—	)		(—	)				—
	Put options US$			1,173			—			0		- 52		—			—			—		—
				(52	)		(—	)						(—	)		(—	)

		Total		44,883			—			39,637		- 551		—			—			—		—


For the fiscal year ended March 31, 2002		For the fiscal year ended March 31, 2003
(As of March 31, 2002)		(As of March 31, 2003)

1.	Calculation method of fair values:		Due to the application of accounting standards for Foreign Currency Transactions, derivative transactions which have been transferred to the monetary credits and debts, etc. denominated in foreign currency and the transactions to which hedge accounting has been applied are excluded from the above table.

(1)	Forward foreign exchange contracts:
	Fair values are estimated based on the market prices of the future market.

(2)	Currency option transactions:
	Fair values are estimated based on the internally established models, etc. for calculation of option values.

2.	Due to the application of accounting standards for Foreign Currency Transactions, derivative transactions which have been transferred to the monetary credits and debts, etc. denominated in foreign currency are excluded from the above table.

(2)

Interest rate


(Millions of Yen)
					For the fiscal year ended March 31, 2002										For the fiscal year ended March 31, 2003
					(As of March 31, 2002)										(As of March 31, 2003)

													Unrealized Gain										Unrealized Gain
													/(Loss)										/(Loss)
Types of contracts					Contract Amount						Fair Value		on valuation		Contract Amount						Fair Value		on valuation

								1 year or more										1 year or more

Transactions other than market transactions
Interest rate swap contracts:
	Receivable fixed rate, payable floating rate:					27,356			25,946			1,666		1,666		27,204			25,704			1,928		1,928
	Payable fixed rate, receivable floating rate:					20,810			20,400			- 1,342		- 1,342		19,870			18,870			- 1,643		- 1,643
	Receivable floating rate, payable fixed rate:					6,000			6,000			- 14		- 14		4,000			4,000			- 63		- 63
Interest rate option contracts:
		Cap
			Short:
				Call:		8,910			8,700			69		156		9,500			9,300			26		202
						(225	)		(224	)						(228	)		(226	)
			Sell:
				Call:		3,000			3,000			73		- 123		3,500			3,500			25		- 173
						(196	)		(196	)		—				(198	)		(198	)

				Total		66,076			64,046			451		342		64,074			61,374			273		251


For the fiscal year ended March 31, 2002		For the fiscal year ended March 31, 2003
(As of March 31, 2002)		(As of March 31, 2003)

1. Calculation method of fair values:		1. Calculation method of fair values:

(1) Interest rate swap transactions:		Same as that for the fiscal year ended March 31, 2002.

Fair values are estimated by discounted values of future cash flows estimated based on the interest rate as of the balance sheet date.

(2) Interest rate option transactions:

Fair values are estimated based on internally established models, etc. for calculation of option values.

2. The transactions to which hedge accounting has been applied are excluded from the above table.		2. Same as that for the fiscal year ended March 31, 2002.

(3) Stock

(Millions of Yen)


				For the fiscal year ended March 31, 2002									For the fiscal year ended March 31, 2003
				(As of March 31, 2002)									(As of March 31, 2003)

											Unrealized Gain									Unrealized Gain
											/(Loss)									/(Loss)
				Contract Amount					Fair Value		on valuation		Contract Amount					Fair Value		on valuation

Types of contracts

				1 year or more									1 year or more

Market transactions Stock price index futures:
	Short:				1,158		—			1,110		48		—		—			—		—
Stock price index option contracts:
		Short
			Call:		3,050		—			7		44		—		—			—		—
					(51	)	(—	)						(—	)	(—	)
		Sell
			Put:		2,700		—			42		-2		—		—			—		—
					(45	)	(—	)		—				(—	)	(—	)

			Total		6,908		—			1,159		90		—		—			—		—


For the fiscal year ended March 31, 2002		For the fiscal year ended March 31, 2003
(As of March 31, 2002)		(As of March 31, 2003)

Calculation method of fair values:		Contracts to which hedge accounting has been applied are excluded from the above table.

Fair values are estimated based on the closing market prices at the major markets.

(4)

Bond and equity

(Millions of Yen)


				For the fiscal year ended March 31, 2002										For the fiscal year ended March 31, 2003
							(As of March 31, 2002)										(As of March 31, 2003)

												Unrealized Gain										Unrealized Gain
												/(Loss)										/(Loss)
				Contract Amount						Fair Value		on valuation		Contract Amount						Fair Value		on valuation

Types of contracts							1 year or more										1 year or more

Transactions other than market transactions
	Bond and equity over-the-counter option contracts:
	Short:
		Put			7,392			—			1		16		2,953			—			—		7
					(18	)		(—	)						(7	)		(—	)

			Total		7,392			—			1		16		2,953			—			—		7


For the fiscal year ended March 31, 2002		For the fiscal year ended March 31, 2003
(As of March 31, 2002)		(As of March 31, 2003)

Calculation method of fair values:		Calculation method of fair values:
	Fair values are estimated based on the internally established models, etc. for calculation of option values.		Same as that for the fiscal year ended March 31, 2002.

(5)

Credit

(Millions of Yen)


			For the fiscal year ended March 31, 2002								For the fiscal year ended March 31, 2003
			(As of March 31, 2002)								(As of March 31, 2003)

									Unrealized Gain								Unrealized Gain
									/(Loss)								/(Loss)
			Contract Amount				Fair Value		on valuation		Contract Amount				Fair Value		on valuation

Types of contracts					1 year or more								1 year or more

Transactions other than market transactions
Credit derivative contracts:
	Short:			—		—		—		—		561,964		549,752		-7,391		-7,391
	Sell:			—		—		—		—		22,838		22,838		60		60

		Total		—		—		—		—		584,802		572,590		-7,330		-7,330


For the fiscal year ended March 31, 2002	For the fiscal year ended March 31, 2003
(As of March 31, 2002)	(As of March 31, 2003)

		1.	Calculation method of fair values:
			Fair values are estimated based on major components such as prices and duration of contracts, etc. of transaction objects. Fair values of some contracts are partially estimated based on the quoted prices from the financial institutions with which the filing company has transactions.

		2.	“Short” is the underwriting contract for credit risks and “Sell” is the delivery contract for credit risks.

(6)

Others

(Millions of Yen)


					For the fiscal year ended March 31, 2002										For the fiscal year ended March 31, 2003
					(As of March 31, 2002)										(As of March 31, 2003)

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

								1 year										1 year
								or more										or more

Transactions other than market transactions
	Weather derivative contracts:
		Cap
			Short:			8			0			15		8		16			—			20		4
						(24	)		(0	)						(24	)		(—	)
			Sell:			5			—			14		-2		0			—			1		0
						(16	)		(—	)						(0	)		(—	)
		Floor
			Short:			0			—			0		0		—			—			—		—
						(1	)		(—	)						(—	)		(—	)
			Sell:			0			—			0		-0		—			—			—		—
						(0	)		(—	)						(—	)		(—	)
		Color
			Short:			—			—			—		—		0			—			0		—
						(—	)		(—	)						(0	)		(—	)
		Swap				—			—			—		—		0			—			—		—
		Underwriting contracts for comprehensive risks:				—			—			614		614		—			—			70		70
Natural disaster derivative contracts:
		Cap
			Short:			190			60			2		5		280			160			9		4
						(7	)		(2	)						(14	)		(9	)
Economic index derivative contracts:
		Floor
			Short:			0			—			7		14		0			0			3		—
						(21	)		(—	)						(3	)		(3	)

				Total		205			60			654		640		297			160			105		80


For the fiscal year ended March 31, 2002		For the fiscal year ended March 31, 2003
(As of March 31, 2002)		(As of March 31, 2003)

Calculation method of fair values:		Calculation method of fair values:
	Fair values are estimated based on the internally established models, etc. for calculation of option values.		Fair values are estimated based on the internally established models, etc. for calculation of option values.
			With respect to underwriting contracts for comprehensive risks, fair values are estimated based on the quotes from business partners.

(Annuity and Retirement Benefit)

For the fiscal year ended March 31, 2002

Outline of the retirement benefit plans adopted by the filing company is as follows:

The filing company and some consolidated subsidiaries have established a lump-sum payment benefit plan. In addition, the filing company has established the retirement allowance scheme, welfare pension fund scheme and tax-qualified plans as the defined benefit plan for employees.
The filing company has abolished contributory and non-contributory pension plans due to the merger and has newly adopted the tax-qualified plans.

Matters relating to retirement benefit obligations (as of March 31, 2002):

(Millions of Yen)


(a) Projected retirement benefit obligations		- 318,187




(b) Plan assets		147,000

(c) Unfunded obligations




	(a) + (b)	- 171,187




(d) Unrecognized actuarial losses		26,694




(e) Unrecognized prior service costs		- 19,052

(f) Net retirement benefit obligation recognized in the consolidated balance sheet (c)+(d)+(e)		- 163,544




(g) Prepaid pension cost		–

(h) Reserve for annuity and retirement benefits (f)+(g)		- 163,544

(Notes)

Any substituted portion of welfare pension fund is included in the above figures.

Some consolidated subsidiaries have applied for the simplified tax effect accounting method to calculate retirement benefit obligations.

Matters relating to costs for retirement benefits (From April 1, 2001 to March 31, 2002):

(Millions of Yen)


(a) Service costs^{Note 1}			11,094




(b) Interest cost			6,759




(c) Expected return on plan assets			- 4,413




(d) Amortization of actuarial losses			976




(e) Amortization of prior service costs			- 1,843

(f) Costs for retirement benefits (a)+(b)+(c)+(d)+(e)			12,574

(Notes)

The amount contributed by employees for welfare pension fund is excluded.

Costs for retirement benefits of the consolidated subsidiaries which have applied for the simplified tax effect accounting method are stated in the “(a) service costs”.

Matters relating to the calculation basis for retirement benefit obligations:


(a) Attribution of retirement benefit obligations:		Straight-line method




(b) Discount rates:			2.50	%




(c) Expected rate of return on plan assets:			4.07	%




(d) Amortization period of prior service costs:		4 years




	(Prior service costs are amortized using the straight-line method over certain periods within the estimated average remaining service years of employees.)




(e) Amortization period of actuarial losses:		10 years

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

For the fiscal year ended March 31, 2003

Outline of the retirement benefit plans adopted by the filing company is as follows:

Matters relating to retirement benefit obligations (as of March 31, 2003):

(Millions of Yen)


(a) Projected retirement benefit obligations			- 358,372




(b) Plan assets			146,966

(c) Unfunded obligations (a) + (b)			- 211,405




(d) Unrecognized actuarial losses			73,029




(e) Unrecognized prior service costs			- 13,828

(f) Net retirement benefit obligation recognized in the consolidated balance sheet (c)+(d)+(e)			- 152,203




(g) Prepaid pension cost			–

(h) Reserve for annuity and retirement benefits (f)+(g)			- 152,203

(Notes)

Any substituted portion of welfare pension fund is included in the above figures.

Some consolidated subsidiaries have applied for the simplified tax effect accounting method to calculate retirement benefit obligations.

Matters relating to costs for retirement benefits (From April 1, 2002 to March 31, 2003):

(Millions of Yen)


(a) Service costs Note			112,637




(b) Interest cost			7,943




(c) Expected return on plan assets			- 4,410




(d) Amortization of actuarial losses			2,767




(e) Amortization of prior service costs			- 5,223

(f) Costs for retirement benefits (a)+(b)+(c)+(d)+(e)			13,714

(Notes)

The amount contributed by employees for welfare pension fund is excluded.

Costs for retirement benefits of the consolidated subsidiaries which have applied for the simplified tax effect accounting method are stated in the “(a) service costs”.

Other extraordinary losses include extra retirement pay due to the outplacement support system of 4,491 million.

Matters relating to the calculation basis for retirement benefit obligations:


(a) Attribution of retirement benefit obligations:		Straight-line method




(b) Discount rates:				2.00	%




(c) Expected rate of return on plan assets:				3.00	%




(d) Amortization period of prior service costs:			4 years




	(Prior service costs are amortized using the straight-line method over certain periods within the estimated average remaining service years of employees.)




(e) Amortization period of actuarial losses:			10 years




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

(Tax Effect Accounting)

For the fiscal year ended March 31, 2002
(As of March 31, 2002)

Main items having deferred tax assets and deferred tax liabilities occurred are as follows:

(Millions of Yen)


Deferred tax assets




	Securities:	24,234




	Land, etc:	11,402




	Bad debts reserve	7,290




	Underwriting reserves:	143,634




	Reserve for annuity and retirement benefits:	53,306




	Reserve for price fluctuation:	7,459




	Software costs:	14,510




	Other:	18,541

Subtotal deferred tax assets		280,379




Valuation reserve:		- 9,812

Total deferred tax assets		270,567




Deferred tax liabilities Deferred assets under Article 113




	of the Insurance Business Law:	- 573




	Unrealized gains on investments, net of tax:	- 389,101




	Other:	- 1,166

Total deferred tax liabilities		- 390,841

Deferred tax liabilities — net		- 120,273

Details of the significant differences occurred between the normal income tax rate and the effective tax rate after the application of tax effect accounting are as follows:


		(%)
Normal income tax rate in Japan			36.1




(Adjustments)
	Non-taxable income including dividends received		- 16.2




	Non-deductible expenses including entertainment expenses		4.3




	Increase in valuation reserve		4.2




	Other		- 0.4





	Effective tax rate		28.0

For the fiscal year ended March 31, 2003
(As of March 31, 2003)

Main items having deferred tax assets and deferred tax liabilities occurred are as follows:

(Millions of Yen)


Deferred tax assets




	Securities:	37,487




	Land, etc:	12,662




	Bad debts reserve	6,041




	Underwriting reserves:	146,177




	Reserve for annuity and retirement benefits:	50,988




	Reserve for price fluctuation:	2,466




	Software costs:	15,822




	Other:	25,182

Subtotal deferred tax assets		296,827




Valuation reserve:		- 13,490

Total deferred tax assets		283,337




Deferred tax liabilities Deferred assets under Article 113




	of the Insurance Business Law:	- 430




	Unrealized gains on investments, net of tax:	- 253,388




	Other:	- 1,442

Total deferred tax liabilities		- 255,260

Deferred tax liabilities — net		- 28,077

Details of the significant differences occurred between the normal income tax rate and the effective tax rate after the application of tax effect accounting are as follows:


		(%)
Normal income tax rate in Japan			36.1




(Adjustments)
	Increase in valuation reserve		6.6




	Non-taxable income including dividends received		- 5.9




	Non-deductible expenses including entertainment expenses		2.2




	Other		0.9

	Effective tax rate		39.9

(Segment Information)

[Business segment information]

For the fiscal year ended March 31, 2002 (from April 1, 2001 to March 31, 2002)

(Millions of yen)


			Non-life insurance		Life insurance
			business		business		Total		Eliminations		Consolidated

I	Ordinary income and expenses
	Ordinary income		��
(1)	Ordinary income to third parties			1,404,269		99,811		1,504,081		64,836		1,439,244
(2)	Intersegment ordinary income			1,310		—		1,310		1,310		—

		Total		1,405,579		99,811		1,505,391		66,146		1,439,244

Ordinary expenses				1,356,504		98,627		1,455,132		66,180		1,388,951

Ordinary profit				49,075		1,183		50,259		33		50,292

II	Assets, amortization and depreciation and capital expenditures
	Assets			6,985,012		369,487		7,354,500		-30,594		7,323,905

	Amortization and depreciation			18,985		114		19,100		—		19,100

	Capital expenditures			12,269		171		12,440		—		12,440


(Notes)	(1	)	Business segments are determined based on their actual condition of business in the filing 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 fiscal year ended March 31, 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 consolidated statement of income.

For the fiscal year ended March 31, 2003 (from April 1, 2002 to March 31, 2003)

(Millions of yen)


			Non-life insurance		Life insurance
			business		business		Total		Eliminations		Consolidated

I	Ordinary income and expenses
	Ordinary income
(1)	Ordinary income to third parties			1,857,644		133,056		1,990,701		70,321		1,920,379
(2)	Intersegment ordinary income			1,844		—		1,844		1,844		—

		Total		1,859,488		133,056		1,992,545		72,166		1,920,379

Ordinary expenses				1,809,384		133,603		1,942,988		72,166		1,870,821

Ordinary profit or losses				50,104		-547		49,557		—		49,557

II	Assets, amortization and depreciation and capital expenditures
	Assets			6,028,854		479,272		6,508,127		30,513		6,477,614

	Amortization and depreciation			22,415		134		22,549		—		22,549

	Capital expenditures			10,719		47		10,766		—		10,766


(Notes)	(1	)	Business segments are determined based on their actual condition of business in the filing 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 fiscal year ended March 31, 2003 represents the amount transferred, as a result that the reserve for underwriting reserves which has been classified as ordinary income for the life insurance business segment is included in and stated as the provision for underwriting reserves on the consolidated statement of income.

	(4	)	As stated in 4. (12) of the “Significant Accounting Policies for Preparation of Consolidated Financial Statements”, Mitsui Sumitomo Reinsurance Limited, consolidated overseas subsidiary, has changed its accounting for premiums from the accrual basis to the statement arrival basis for the fiscal year under review. As a result, ordinary income for the non-life insurance business increased by ¥357 million and ordinary profit increased by ¥42 million, respectively.

			Such changes were made during the latter semiannual period and accordingly the former accounting method has been applied for the semiannual period ended September 30, 2002. As a result, ordinary income for the non-life insurance business increased by ¥222 million, ordinary profit for the semiannual period ended September 30, 2002 decreased by ¥336 million, respectively in comparison with those prepared according to the new accounting method.

[Geographical segment information]

For the fiscal year ended March 31, 2002 (from April 1, 2001 to March 31, 2002)

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

For the fiscal year ended March 31, 2003 (from April 1, 2002 to March 31, 2003)
Same as the above.

[Overseas sales]

For the fiscal year ended March 31, 2002 (from April 1, 2001 to March 31, 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.

For the fiscal year ended March 31, 2003 (from April 1, 2002 to March 31, 2003)


	Same as the above.

[Transactions with the Related Parties]

For the fiscal year ended March 31, 2002 (From April 1, 2001 to March 31, 2002)
Subsidiaries, etc.

Capital stock

Types of company

Name of company

Address

(¥ million)

Contents of business or occupation

Subsidiary

MITSUI SUMITOMO
INSURANCE Loan
Service Company,
Limited

Chuo-ku, Tokyo

186

Guarantee of debt related to consumer loans and agency of business related to housing loan guarantee

Relationship

Amount of

Balance at the end

Ratio of ownership of voting

Concurrent assumption of

Principal business

Contents of

transaction

of fiscal year

rights, etc.

office, etc. of officers

or occupation

transactions

(¥ million)

Item

(¥ million)

Direct ownership:
Indirect ownership:

10
84

%
%

Concurrent assumption:
Dispatch:
Concurrent assumption:
Transfer:

3
7
4

Credit guarantee related to consumer loans executed by the Company and agency of business related to housing loan guarantee to be underwritten by the Company

Guarantee of debt related to transactions between the Company and third parties (Note)

85,757

—

Conditions of transactions, policy for determination of conditions of transactions, etc.:


	The Company and MITSUI SUMITOMO INSURANCE Loan Service Company, Limited have entered into an agreement related to comprehensive guarantee presenting conditions for financing for each type of loan, in advance, and the Company has been guaranteed pursuant thereto.

(Note)

The Company receives a guaranteed liabilities from MITSUI SUMITOMO INSURANCE Loan Service Company, Limited with regard to loans such as housing loans, etc. to third parties.

For the fiscal year ended March 31, 2003 (From April 1, 2002 to March 31, 2003)
Subsidiaries, etc.


			Capital stock
Types of company	Name of company	Address	(¥ million)		Contents of business or occupation

Subsidiary	MITSUI SUMITOMO INSURANCE Loan Service Company, Limited	Chuo-ku, Tokyo		186	Credit guarantee related to consumers’ loan and agency of business related to housing loan guarantee

Relationship

Amount of

Balance at the end

Ratio of ownership of voting

Concurrent assumption of

Principal business

Contents of

transaction

of fiscal year

rights, etc.

office, etc. of officers

or occupation

transactions

(¥ million)

Item

(¥ million)

Direct ownership:
Indirect ownership:

10
84

%
%

Dispatch:
Concurrent assumption:
Transfer:

5
7
2

Credit guarantee related to consumer loans executed by the Company and agency of business related to housing loan guarantee to be underwritten by the Company

Guarantee of debt related to transactions between the Company and third parties (Note)

85,800

—

Conditions of transactions, policy for determination of conditions of transactions, etc.:


	The Company and MITSUI SUMITOMO INSURANCE Loan Service Company, Limited have entered into an agreement related to a comprehensive guarantee presenting conditions for financing for each type of loan, in advance, and the Company is to be guaranteed pursuant thereto.

(Notes)

The Company receives a guaranteed liabilities from MITSUI SUMITOMO INSURANCE Loan Service Company, Limited with regard to loans such as housing loans, etc. to third parties.

(Per share data)


For the fiscal year ended March 31, 2002		For the fiscal year ended March 31, 2003

Net assets per share:	¥869.82	Net assets per share:	¥717.74
Basic net income per share:	¥14.44	Basic net income per share:	¥22.46
Diluted net income per share:	¥13.66	Diluted net income per share:	¥21.35


		The “Accounting Standards regarding Current Net Income Per Share (Corporate Accounting Standards No. 2)” and “Guideline for Application of Accounting Standards Regarding Current Net Income Per Share (Guideline for Application of Corporate Accounting Standards No. 4)” has been applied for the fiscal year under review. In the event that such new accounting standards and guideline are applied for the fiscal year ended March 31, 2002, the per share data is as follows:


	Net assets per share:			¥869.77
	Basic net income per share:			¥14.37
	Diluted net income per share:			¥13.59

(Note)

The basis for calculation of basic and diluted net income per share are as follows:


		For the fiscal year ended			For the fiscal year ended
		March 31, 2002			March 31, 2003
		(April 1, 2001 - March 31, 2002)			(April 1, 2002 - March 31, 2003)

Basic net income per share
	Net income for the fiscal year(Millions of yen)		—			32,812
	Amounts not attributable to common stock(Millions of yen)		—			80
	(Officers’ bonuses by appropriation of retained earnings)(Millions of yen)		(—	)		(80	)
	Net income attributable to shares of common stock(Millions of yen)		—			32,732
	The average number of shares outstanding during the fiscal year(Thousand shares)		—			1,457,297
Diluted net income per share
	Adjustments to net income(Millions of yen)		—			684
	(Interest paid (net of tax))(Millions of yen)		(—	)		(525	)
	(Commissions (net of tax))(Millions of yen)		(—	)		(158	)
	Increase in common stock(Thousand shares)		—			107,250
	(Convertible bonds)(Thousand shares)		(—	)		(107,250	)
Summary of latent shares which were not included in the calculation of diluted net income per share, as they have no diluted effects			—		Not applicable

(Important Subsequent Events)


For the fiscal year ended		For the fiscal year ended
March 31, 2002		March 31, 2003
(April 1, 2001 - March 31, 2002)		(April 1, 2002 - March 31, 2003)

		The filing company has been granted authorization from the Minister of Health, Labor and Welfare for exemption from the duty of future payment for the substituted portion of the welfare annuity fund as of April 1, 2003 as a result of the enforcement of the Defined Benefit Corporate Pension Law.
		The filing company plans to recognize the difference arising from the retirement benefit obligation with respect to the substituted portion and an amount equivalent to the refunded plan assets as income or loss on the filing company’s financial statements on the date that the substituted portion is returned. The interim measures prescribed by Paragraph 2, Section 47 of the “Guidelines for the Practice of Retirement Benefit Accounting (interim report)” (Report No. 13, Accounting System Committee, The Japanese Certified Public Accountants) will not be applied.
		In the light of fluctuations in the fair values of plan assets held by the filing company and undecided refundable amount of plan assets, the actual amount to be recognized as income or loss on the date that the substituted portion is returned, has not yet been determined. If the said Guidelines were applied, the impact on the settlements of accounts of the filing company would be approximately ¥33 billion (extraordinary income) on a trial basis.

-5-

[Consolidated Attached Statements]

[List of Bonds]

Amount outstanding

as of March 31,

Interest

Name of company

Issue

Issue date

2002
(Millions of yen)

2003
(Millions of yen)

rate
(%)

Security

Maturity date

Filing company

The 2nd, No. 2 unsecured convertible bonds

Dec. 14, 1987

12,850

—

1.6 per annum

None

March 31, 2003

Filing company

The 3rd unsecured
convertible bonds

Aug. 4, 1994

49,998

—

0.7 per annum

None

March 31, 2003

Filing company

The 4th, No. 2 unsecured convertible bonds

Aug. 10, 1995

22,250

22,250
(22,250)

1.2 per annum

None

March 31, 2004

Total

—

85,098

22,250

—

(22,250)

(Notes)	1	The amount stated in the parenthesis of the above column “amount outstanding as of March 31, 2003” presents the current portion of convertible bonds to be redeemed within one year.

	2	The statement concerning convertible bonds is indicated in the table below.


			Shares issued	Amount which is
			upon	transferred to
Issue	Conversion period	Conversion price	conversion	common stock

The 4th, No. 2 unsecured convertible bonds	From September 1, 1995 to March 30, 2004	¥667.90 per share	Shares of common stock	¥334

The amount to be redeemed within five years after the closing date of the consolidated settlement of accounts.


	Over 1 year but	Over 2 years but	Over 3 years but	Over 4 years but
Within 1 year	less than 2 years	less than 3 years	less than 4 years	less than 5 years
(Millions of yen)	(Millions of yen)	(Millions of yen)	(Millions of yen)	(Millions of yen)

22,250	—	—	—	—

[List of Loans Payable]


				Amount outstanding		Amount outstanding		Average
				as of March 31,		as of March 31,		interest
				2002		2003		rate
Items				(Millions of yen)		(Millions of yen)		(%)		Repayment period

Short-term loans payable					—		147		0.75		—
Current portion of long-term loans payable					1,300		250		1.70		—
Long-term loans payable										November 30, 2004 -
	(excluding current portion of long-term loans payable)				250		1,100		1.22	December 30, 2005
Other interest bearing debt										March 31, 2005 -
		Long-term deposit (over 1 year)			125		125		1.00	March 31, 2009

			Total		1,675		1,622		—		—

Notes:	1	Loans payable stated in the above lists are included in “Other liabilities” of the consolidated balance sheet.

	2	“Average interest rate” is represented by the weighted average interest rate for the outstanding amount of loans as at the end of the fiscal year.

	3	The estimated amount to be repaid for the long-term loans and other interest bearing debts (excluding the current portion of long-term loans to be redeemed within one year) within five years following the settlement of consolidated accounts are stated as below.


	Over 1 year but		Over 2 years but		Over 3 years but		Over 4 years but
	less than 2 years		less than 3 years		less than 4 years		less than 5 years

Long-term loans payable (Millions of yen)		600		500		—		—
Other interest bearing debts (Millions of yen)		50		50		—		—

(2)		[Others]

		Not applicable.

- End -

Mitsui Sumitomo Insurance 6-KMitsui Sumitomo Insurance Company, Limited