NKSJ 6-K Current report (foreign)

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:333-163336

For the month ofDecember 2010.

NKSJ Holdings, Inc.

(Translation of registrant’s name into English)

26-1, Nishi-Shinjuku 1-chome

Shinjuku-ku, Tokyo 160-8338

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-            

Information furnished on this form:

Table of Contents

1. [English Translation]

Summary of Consolidated Financial Results for the six months ended September 30, 2010

2. [English Translation]

Summary of Consolidated Financial Results for the six months ended September 30, 2010

(Supplementary Information)

3. [English Summary]

Quarterly Securities Report for the Three Months Ended September 30, 2010

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.

	NKSJ Holdings, Inc.
Date: December 3, 2010
	By:	/S/    HIROHISA KURUMIDA
		Hirohisa Kurumida
		Manager of Corporate Legal Department

[Translation]

Summary of Consolidated Financial Results for the six months ended September 30, 2010

UNOFFICIAL TRANSLATION

This document is an unofficial English translation of the Japanese original.

November 19, 2010

NKSJ Holdings, Inc.

Summary of Consolidated Financial Results for the six months ended September 30, 2010

[under Japanese GAAP]

Company Name:	NKSJ Holdings, Inc.
Listed on:	Tokyo and Osaka Stock Exchange
Stock Code Number:	8630
URL:	http://www.nksj-hd.com/
Representative Director:	Masatoshi Sato, President & CEO
Contact:	Kazuhisa Tamura, Manager, Accounting Department

Scheduled date to file Quarterly Securities Report:	November 26, 2010
Scheduled date to start payment of dividends:	———
Supplementary information for quarterly financial statements:	Yes
Schedule for quarterly investor meeting:	Yes (for institutional investors and analysts)

Note) Any amounts less than one million yen are rounded down, unless otherwise noted.

1. Consolidated Financial Results for the six months ended September 30, 2010 (April 1 to September 30, 2010)

(1) Consolidated Results of Operations

Note) The percentages are changes from corresponding period of previous fiscal year.

	Ordinary income				Ordinary profit				Net income
	millions of yen		%		millions of yen		%		millions of yen		%
Six months ended September 30, 2010		1,329,799		—		38,888		—		24,116		—
Six months ended September 30, 2009		—		—		—		—		—		—

	Net income per share		Diluted net income per share
	yen		yen
Six months ended September 30, 2010		14.52		14.50
Six months ended September 30, 2009		—		—

(2) Consolidated Financial Conditions

	Total assets		Total net assets		Equity ratio		Total net assets per share
	millions of yen		millions of yen		%		yen
As of September 30, 2010		9,026,824		1,122,876		12.4		673.01
As of March 31, 2010		—		—		—		—

Reference) Equity capital:	As of September 30, 2010	1,117,540 million yen
	As of March 31, 2010	—  million yen

2. Dividends

	Dividends per share
	First quarter-end		Second quarter-end		Third quarter-end		Fiscal year-end		Annual
	yen		yen		yen		yen		yen
Fiscal year ended March 31, 2010		—		—		—		—		—
Fiscal year ending March 31, 2011		—		—
Fiscal year ending March 31, 2011 (Forecast)						—		20.00		20.00

Note)  Revision to the forecasts for dividends during the second quarter: None

3. Consolidated Forecasts for the fiscal year ending March 31, 2011 (April 1, 2010 to March 31, 2011)

Note) The percentages are changes from corresponding period of previous fiscal year.

	Ordinary income				Ordinary profit				Net income				Net income per share
	millions of yen		%		millions of yen		%		millions of yen		%		yen
Fiscal year ending March 31, 2011 (April 1, 2010 to March 31, 2011)		2,625,000		—		48,000		—		25,000		—		15.05

Note)   Revision to the forecasts for the fiscal year during the second quarter: Yes

4. Other

Note)   Please refer to “Other Information” on page 3 for details.

(1) Changes in significant subsidiaries during the six months ended September 30, 2010: None

Note)   The above shows changes in specified subsidiaries resulting in the change in the scope of consolidation during the six months ended September 30, 2010.

(2) Changes in accounting policies, procedures and methods of presentation

 Changes due to revisions to accounting standards:	None
‚ Changes due to other reasons:	None

Note) The above shows changes which are shown in “Changes in significant accounting policies for the preparation of the interim consolidated financial statements”.

(3) Number of shares outstanding (Common stock) :

 Total shares outstanding including treasury stock:
As of September 30, 2010	1,661,409,178 shares
As of March 31, 2010	— shares
‚ Treasury stock:
As of September 30, 2010	907,549 shares
As of March 31, 2010	— shares
ƒ Average number of shares outstanding:
For the six months ended September 30, 2010	1,660,781,785 shares
For the six months ended September 30, 2009	— shares

(Summary of Non-consolidated Financial Results)

1. Non-consolidated Financial Results for the six months ended September 30, 2010 (April 1 to September 30, 2010)

(1) Non-consolidated Results of Operations

Note) The percentages are changes from corresponding period of previous fiscal year.

	Operating income				Operating profit				Ordinary profit				Net income
	millions of yen		%		millions of yen		%		millions of yen		%		millions of yen		%
Six months ended September 30, 2010		2,423		—		1,187		—		478		—		476		—
Six months ended September 30, 2009		—		—		—		—		—		—		—		—

	Net income per share
	yen
Six months ended September 30, 2010		0.28
Six months ended September 30, 2009		—

(2) Non-consolidated Financial Conditions

	Total assets		Total net assets		Equity ratio		Total net assets per share
	millions of yen		millions of yen		%		yen
As of September 30, 2010		881,652		879,217		99.5		528.06
As of March 31, 2010		—		—		—		—

Reference) Equity capital:	As of September 30, 2010	876,854 million yen
	As of March 31, 2010	— million yen

(Disclosure regarding the execution of the interim audit process)

This summary is outside the scope of the interim audit procedure which is required by “Financial Instruments and Exchange Act”. The interim audit process of the interim consolidated financial statements and the interim non-consolidated financial statements was not completed as of the date of the disclosure of this summary.

(Notes for using forecasted information etc.)

The forecasts included in this document are based on the currently available information and certain assumptions that we believe reasonable. Accordingly, the actual results may differ materially from those projected herein depending on various factors.

For assumptions underlying the forecasts and notes for using forecasted information, please refer to “Qualitative information related to the consolidated forecasts” on page 2 and “Note Regarding Forward-looking Statements” on page 21.

Non-consolidated forecasts for the fiscal year ending March 31, 2011 (April 1, 2010 to March 31, 2011) are not disclosed.

NKSJ Holdings, Inc. prepares the interim consolidated financial statements and the interim non-consolidated financial statements for the six months ended September 30, 2010, since it conducts business defined in the provision of Article 17-15 Paragraph 2 of the Cabinet Office Ordinance on Disclosure of Corporate Information, etc.

NKSJ Holdings, Inc. was established on April 1, 2010 as a holding company of Sompo Japan Insurance Inc. and NIPPONKOA Insurance Co., Ltd. This consolidated fiscal year is the first period, so there are no results for the fiscal year ended March 31, 2010 and the six months ended September 30, 2009.

Contents

1.	Qualitative Information related to the Consolidated Financial Results for the six months ended September 30, 2010		2
	(1)	Qualitative information related to the consolidated results of operations	2
	(2)	Qualitative information related to the consolidated financial conditions	2
	(3)	Qualitative information related to the consolidated forecasts	2
2.	Other Information		3
	(1)	Summary of changes in significant subsidiaries	3
	(2)	Summary of changes in accounting policies, procedures and methods of presentation	3
3.	Interim Consolidated Financial Statements		4
	(1)	Interim Consolidated Balance Sheets	4
	(2)	Interim Consolidated Statements of Income	5
	(3)	Interim Consolidated Statements of Changes in Net Assets	6
	(4)	Notes on Going-Concern Assumption	9
	(5)	Securities	9
	(6)	Derivatives Transactions	10
4.	Interim Financial Statements (Non-consolidated)		13
	(1)	Interim Balance Sheets (Non-consolidated)	13
	(2)	Interim Statements of Income (Non-consolidated)	14
	(3)	Interim Statements of Changes in Net Assets (Non-consolidated)	15
	(4)	Notes on Going-Concern Assumption	17
5.	Supplementary Information		18
	(1)	Summary of Results of Operations	18
	(2)	Premiums Written and Claims Paid by Lines of Business (Consolidated)	19
	(3)	Life Insurance Business (Consolidated)	20
Note Regarding Forward-looking Statements			21

1

1. Qualitative Information related to the Consolidated Financial Results for the six months ended September 30, 2010

(1) Qualitative information related to the consolidated results of operations

During the six months ended September 30, 2010, the Japanese economy continued facing severe difficulties, with high unemployment rate and growing risk of an economic downturn due to fluctuations in exchange rates and stock prices, even though corporate earnings and consumer spending improved because of recovery in overseas economies, mainly in Asia, and the effect of various fiscal stimulus measures.

Under such conditions, the consolidated results of operations for the six months ended September 30, 2010 are as follows.

1,261.3 billion yen of underwriting income, 63.2 billion yen of investment income and 5.1 billion yen of other ordinary income resulted in 1,329.7 billion yen of ordinary income. In contrast, 1,048.0 billion yen of underwriting expenses, 24.9 billion yen of investment expenses, 212.0 billion yen of operating, general and administrative expenses and 5.9 billion yen of other ordinary expenses resulted in 1,290.9 billion yen of ordinary expenses.

As a result, ordinary profit amounted to 38.8 billion yen. Net income after extraordinary items, net of total income taxes and non-controlling interests, resulted in 24.1 billion yen.

The information by reportable segments for the six months ended September 30, 2010 was as follows.

(a) Property and casualty insurance business

In property and casualty insurance business, net premiums written amounted to 987.8 billion yen and net income amounted to 27.6 billion yen.

(b) Life insurance business

In life insurance business, life insurance premiums written amounted to 108.9 billion yen and net loss amounted to 2.3 billion yen.

(2) Qualitative information related to the consolidated financial conditions

As of September 30, 2010, the total assets amounted to 9,026.8 billion yen and the total net assets amounted to 1,122.8 billion yen.

(3) Qualitative information related to the consolidated forecasts

We forecast 2,625.0 billion yen of consolidated ordinary income, 48.0 billion yen of consolidated ordinary profit and 25.0 billion yen of consolidated net profit for the fiscal year ending March 31, 2011. Our assumptions relating to insurance underwriting are based on an extrapolation from past trends, while we have allowed for 11.5 billion yen in net claims paid due to natural disasters. Our forecasts relating to asset investment performance assume that market interest rates, exchange rates and stock prices remain at or near their levels as of end-September 2010.

2

2. Other Information

(1) Summary of changes in significant subsidiaries

None.

(2) Summary of changes in accounting policies, procedures and methods of presentation

NKSJ Holdings, Inc. is a sole parent company of Sompo Japan Insurance Inc. and NIPPONKOA Insurance Co., Ltd. established through share exchange on April 1, 2010. This consolidated fiscal year is the first period, so there is no change in accounting policies, procedures and methods of presentation.

3

3. Interim Consolidated Financial Statements

(1) Interim Consolidated Balance Sheets

	(Millions of yen)
	As of September 30, 2010
Assets:
Cash and deposits		270,872
Call loans		98,497
Receivables under resale agreements		82,982
Receivables under securities borrowing transactions		27,146
Monetary receivables bought		37,253
Money trusts		84,648
Securities		6,511,189
Loans		713,053
Tangible fixed assets		362,176
Intangible fixed assets		31,566
Other assets		571,200
Deferred tax assets		242,078
Allowance for possible loan losses		(5,839	)
Total assets		9,026,824
Liabilities:
Underwriting funds:		7,352,175
Reserve for outstanding losses and claims		993,986
Underwriting reserves		6,358,188
Bonds		128,000
Other liabilities		269,655
Reserve for retirement benefits		106,503
Reserve for retirement benefits to directors		113
Reserve for bonus payments		25,510
Reserves under the special laws:		21,336
Reserve for price fluctuation		21,336
Deferred tax liabilities		654
Total liabilities		7,903,947
Net assets:
Shareholders’ equity:
Common stock		100,045
Capital surplus		438,555
Retained earnings		335,209
Treasury stock		(527	)
Total shareholders’ equity		873,282
Valuation and translation adjustments:
Unrealized gains on securities available for sale, net of tax		266,889
Deferred gains on hedges		5,330
Foreign currency translation adjustments		(27,962	)
Total valuation and translation adjustments		244,258
Stock acquisition rights		2,362
Non-controlling interests		2,973
Total net assets		1,122,876
Total liabilities and net assets		9,026,824

4

(2) Interim Consolidated Statements of Income

	(Millions of yen)
	Six months ended September 30, 2010 (April 1 to September  30, 2010)
Ordinary income:		1,329,799
Underwriting income:		1,261,384
Net premiums written		987,832
Deposits of premiums by policyholders		79,398
Interest and dividend income on deposits of premiums, etc.		30,061
Life insurance premiums written		108,905
Reversal of reserve for outstanding losses and claims		35,643
Reversal of underwriting reserves		16,454
Investment income:		63,222
Interest and dividend income		78,453
Investment gains on money trusts		896
Investment gains on trading securities		67
Gains on sales of securities		5,839
Transfer of interest and dividend income on deposits of premiums, etc.		(30,061	)
Other ordinary income		5,191
Ordinary expenses:		1,290,910
Underwriting expenses:		1,048,058
Net claims paid		607,279
Loss adjustment expenses		65,449
Net commissions and brokerage fees		176,065
Maturity refunds to policyholders		165,853
Life insurance claims paid		28,735
Investment expenses:		24,913
Investment losses on money trusts		581
Losses on sales of securities		2,201
Impairment losses on securities		6,827
Operating, general and administrative expenses		212,008
Other ordinary expenses:		5,929
Interest paid		3,619
Ordinary profit		38,888
Extraordinary gains:		2,015
Gains on disposal of fixed assets		79
Gains on negative goodwill		149
Other extraordinary gains		1,785
Extraordinary losses:		4,923
Losses on disposal of fixed assets		324
Impairment losses		662
Provision for reserves under the special laws:		2,843
Provision for reserve for price fluctuation		2,843
Other extraordinary losses		1,093
Income before income taxes and non-controlling interests		35,980
Income taxes		2,793
Deferred income taxes		9,250
Total income taxes		12,043
Income before non-controlling interests		23,936
Non-controlling interests		(180	)
Net income		24,116

5

(3) Interim Consolidated Statements of Changes in Net Assets

	(Millions of yen)
	Six months ended September 30, 2010 (April 1 to September 30, 2010)
Shareholders’ equity:
Common stock:
Balance at the beginning of the period		70,000
Changes during the period
Issuance of new stocks—exercise of stock acquisition rights		45
Increase due to share exchange		30,000
Total changes during the period		30,045
Balance at the end of the period		100,045
Capital surplus:
Balance at the beginning of the period		24,229
Changes during the period
Issuance of new stocks—exercise of stock acquisition rights		45
Disposal of treasury stock		31
Increase due to share exchange		414,248
Total changes during the period		414,325
Balance at the end of the period		438,555
Retained earnings:
Balance at the beginning of the period		336,793
Changes during the period
Dividends		(25,700	)
Net income		24,116
Total changes during the period		(1,584	)
Balance at the end of the period		335,209
Treasury stock:
Balance at the beginning of the period		—
Changes during the period
Acquisition of treasury stock		(708	)
Disposal of treasury stock		180
Total changes during the period		(527	)
Balance at the end of the period		(527	)
Total shareholders’ equity:
Balance at the beginning of the period		431,023
Changes during the period
Issuance of new stocks—exercise of stock acquisition rights		91
Dividends		(25,700	)
Net income		24,116
Acquisition of treasury stock		(708	)
Disposal of treasury stock		212
Increase due to share exchange		444,248
Total changes during the period		442,259
Balance at the end of the period		873,282

6

	(Millions of yen)
	Six months ended September 30, 2010 (April 1 to September 30, 2010)
Valuation and translation adjustments:
Unrealized gains on securities available for sale, net of tax:
Balance at the beginning of the period		389,352
Changes during the period
Net changes in items other than shareholders’ equity		(122,463	)
Total changes during the period		(122,463	)
Balance at the end of the period		266,889
Deferred gains on hedges
Balance at the beginning of the period		—
Changes during the period
Net changes in items other than shareholders’ equity		5,330
Total changes during the period		5,330
Balance at the end of the period		5,330
Foreign currency translation adjustments:
Balance at the beginning of the period		(21,674	)
Changes during the period
Net changes in items other than shareholders’ equity		(6,287	)
Total changes during the period		(6,287	)
Balance at the end of the period		(27,962	)
Total valuation and translation adjustments:
Balance at the beginning of the period		367,678
Changes during the period
Net changes in items other than shareholders’ equity		(123,420	)
Total changes during the period		(123,420	)
Balance at the end of the period		244,258
Stock acquisition rights:
Balance at the beginning of the period		1,302
Changes during the period
Net changes in items other than shareholders’ equity		1,059
Total changes during the period		1,059
Balance at the end of the period		2,362
Non-controlling interests:
Balance at the beginning of the period		2,839
Changes during the period
Net changes in items other than shareholders’ equity		133
Total changes during the period		133
Balance at the end of the period		2,973

7

	(Millions of yen)
	Six months ended September 30, 2010 (April 1 to September 30, 2010)
Total net assets:
Balance at the beginning of the period		802,843
Changes during the period
Issuance of new stocks—exercise of stock acquisition rights		91
Dividends		(25,700	)
Net income		24,116
Acquisition of treasury stock		(708	)
Disposal of treasury stock		212
Increase due to share exchange		444,248
Net changes in items other than shareholders’ equity		(122,226	)
Total changes during the period		320,032
Balance at the end of the period		1,122,876

8

(4) Notes on Going-Concern Assumption

None.

(5) Securities

As of September 30, 2010

1. Bonds held to maturity

	(Millions of yen)
	Carrying amount on balance sheet		Fair value		Unrealized gains  (losses)
Securities whose fair value exceeds their carrying amount on balance sheet
Domestic bonds		1,074,635		1,153,057		78,421
Foreign securities		46,701		47,441		740
Subtotal		1,121,337		1,200,499		79,161
Securities whose fair value doesn’t exceed their carrying amount on balance sheet
Domestic bonds		2,291		2,227		(64	)
Foreign securities		24,336		24,203		(133	)
Subtotal		26,628		26,430		(197	)
Total		1,147,965		1,226,930		78,964

2. Policy reserve matching bonds

	(Millions of yen)
	Carrying amount on balance sheet		Fair value		Unrealized gains  (losses)
Securities whose fair value exceeds their carrying amount on balance sheet
Domestic bonds		12,079		12,872		792
Securities whose fair value doesn’t exceed their carrying amount on balance sheet
Domestic bonds		—		—		—
Total		12,079		12,872		792

3. Securities available for sale

	(Millions of yen)
	Carrying amount on balance sheet		Cost		Unrealized gains  (losses)
Securities whose carrying amount on balance sheet exceeds their cost
Domestic bonds		2,486,904		2,390,706		96,197
Domestic stocks		913,245		463,232		450,012
Foreign securities		524,338		487,609		36,728
Others		69,030		64,353		4,677
Subtotal		3,993,518		3,405,901		587,617
Securities whose carrying amount on balance sheet doesn’t exceed their cost
Domestic bonds		55,228		55,943		(715	)
Domestic stocks		576,687		675,493		(98,806	)
Foreign securities		540,011		607,468		(67,457	)
Others		34,100		35,298		(1,198	)
Subtotal		1,206,027		1,374,204		(168,177	)
Total		5,199,546		4,780,106		419,439

Notes)

1. Securities available for sale, which are considered extremely difficult to figure out their fair value are not included in the above table.

2. Certificate of deposit, which are classified as cash and deposits and beneficial interests in the loan trusts, which are classified as monetary receivables bought in the interim consolidated balance sheet, are included in “Others” above.

3. Impairment losses on securities available for sale which have readily determinable fair value amount to 6,401 million yen (domestic stocks: 5,123 million yen, foreign securities: 1,277 million yen). Impairment losses on securities available for sale which are considered extremely difficult to figure out their fair value amount to 413 million yen (domestic stocks: 317 million yen, foreign securities: 47 million yen, others: 48 million yen).

NKSJ Holdings, Inc. and its domestic consolidated subsidiaries recognize impairment losses on securities available for sale which have readily determinable fair value if fair value declines by 30% or more of their cost as of the interim balance sheet date, as a rule.

9

(6) Derivatives Transactions

As of September 30, 2010

1. Currency derivatives

	(Millions of yen)
	Notional amount		Due after 1 year of notional amount		Fair value			Unrealized gains (losses)
Over-the-counter transactions:
Forward foreign exchanges:
Short
EUR		66,892		—		(3,062	)		(3,062	)
USD		29,161		—		760			760
Long
TRY		19,956		—		281			281
USD		19,389		—		(53	)		(53	)
Total		—		—		(2,073	)		(2,073	)

Notes)

1. Information on currency derivatives transactions other than the above-mentioned transactions is omitted because of no transactions.

2. Calculation methods for the fair value

The fair value is calculated using forward exchange rate.

As for forward foreign exchanges transactions between foreign currency and the other foreign currency, the fair value is calculated using forward exchange rate of the other foreign currency and yen on the day of forward foreign exchanges transactions.

3. Derivatives transactions to which hedge accounting is applied are excluded.

2. Interest rate derivatives

	(Millions of yen)
	Notional amount		Due after 1 year of notional amount		Fair value		Unrealized gains (losses)
Over-the-counter transactions:
Interest rate swaps:
Receive fix / Pay float		15,000		—		63		63
Total		—		—		63		63

Notes)

1. Information on interest rate derivatives transactions other than the above-mentioned transactions is omitted because of no transactions.

2. Calculation methods for the fair value

The fair value is calculated by discounting future cash flow to the present value.

3. Derivatives transactions to which hedge accounting is applied are excluded.

10

3. Equity derivatives

	(Millions of yen)
	Notional amount			Due after 1 year of notional amount			Fair value			Unrealized gains (losses)
Market transactions:
Equity index futures:
Short		5,209			—			14			14
Equity index options:
Short
Call		5,417			—
		205	*		—	*		(6	)		199
Long
Put		4,400			—
		205	*		—	*		406			201
Total		—			—			414			414

Notes)

1. Information on equity derivatives transactions other than the above-mentioned transactions is omitted because of no transactions.

2. Calculation methods for the fair value

(1) Equity index futures

The fair value is based on the closing price at major exchanges.

(2) Equity index options

The fair value is based on the closing price at major exchanges.

3. Amounts with an asterisk (*) represent the amount of the option premiums.

4. Bond derivatives

	(Millions of yen)
	Notional amount		Due after 1 year of notional amount		Fair value		Unrealized gains (losses)
Market transactions:
Bond futures:
Long		1,500		—		3		3
Total		—		—		3		3

Notes)

1. Information on bond derivatives transactions other than the above-mentioned transactions is omitted because of no transactions.

2. Calculation methods for the fair value

The fair value is based on the closing price at major exchanges.

5. Commodity derivatives

None.

11

6. Others

	(Millions of yen)
	Notional amount			Due after 1 year of notional amount			Fair value			Unrealized gains (losses)
Over-the-counter transactions:
Credit derivatives:
Short		7,000			7,000			18			18
Long		3,000			1,000			3			3
Weather derivatives:
Short		480			—
		28	*		—	*		(14	)		13
Earthquake derivatives:
Short		5,000			1,050
		141	*		21	*		(24	)		116
Long		3,555			3,033
		366	*		290	*		138			(227	)
Total		—			—			121			(75	)

Notes)

1. Calculation methods for the fair value

(1) Credit derivatives

The fair value is based on the price quoted by counterparties.

(2) Weather derivatives

The fair value is calculated based on the contract term and the element of the contract.

(3) Earthquake derivatives

The fair value is calculated based on the contract term and the element of the contract.

2. Amounts with an asterisk (*) represent the amount of the option premiums.

12

4. Interim Financial Statements (Non-consolidated)

(1) Interim Balance Sheets (Non-consolidated)

	(Millions of yen)
	As of September 30, 2010
Assets:
Current assets:
Cash and bank deposits		2,269
Accounts receivable		240
Total current assets		2,509
Fixed assets:
Tangible fixed assets		275
Investments and other assets:
Investments in subsidiaries and affiliates		878,799
Others		67
Total investments and other assets		878,866
Total fixed assets		879,142
Total assets		881,652
Liabilities:
Current liabilities:
Short-term borrowings		2,200
Income taxes payable		7
Reserve for bonus payments		104
Others		123
Total current liabilities		2,435
Total liabilities		2,435
Net assets:
Shareholders’ equity:
Common stock		100,045
Capital surplus:
Capital reserves		25,045
Other capital surplus		751,814
Total capital surplus		776,859
Retained earnings:
Other retained earnings:
Retained earnings carried forward		476
Total retained earnings		476
Treasury stock		(527	)
Total shareholders’ equity		876,854
Stock acquisition rights		2,362
Total net assets		879,217
Total liabilities and net assets		881,652

13

(2) Interim Statements of Income (Non-consolidated)

	(Millions of yen)
	Six months ended September 30, 2010 (April 1 to September  30, 2010)
Operating income:
Dividends received from subsidiaries and affiliates		1,200
Fees received from subsidiaries and affiliates		1,223
Total operating income		2,423
Operating expenses:
Operating, general and administrative expenses		1,235
Total operating expenses		1,235
Operating profit		1,187
Non-operating income		0
Non-operating expenses:
Amortization of establishment costs		704
Others		4
Total non-operating expenses		709
Ordinary profit		478
Income before income taxes		478
Income taxes		1
Total income taxes		1
Net income		476

14

(3) Interim Statements of Changes in Net Assets (Non-consolidated)

	(Millions of yen)
	Six months ended September 30, 2010 (April 1 to September  30, 2010)
Shareholders’ equity:
Common stock:
Balance at the beginning of the period		—
Changes during the period
Issuance of new stocks—exercise of stock acquisition rights		45
Increase due to share exchange		100,000
Total changes during the period		100,045
Balance at the end of the period		100,045
Capital surplus:
Capital reserves
Balance at the beginning of the period		—
Changes during the period
Issuance of new stocks—exercise of stock acquisition rights		45
Increase due to share exchange		25,000
Total changes during the period		25,045
Balance at the end of the period		25,045
Other capital surplus:
Balance at the beginning of the period		—
Changes during the period
Disposal of treasury stock		31
Increase due to share exchange		751,782
Total changes during the period		751,814
Balance at the end of the period		751,814
Retained earnings:
Other retained earnings:
Retained earnings carried forward:
Balance at the beginning of the period		—
Changes during the period
Net income		476
Total changes during the period		476
Balance at the end of the period		476
Treasury stock:
Balance at the beginning of the period		—
Changes during the period
Acquisition of treasury stock		(708	)
Disposal of treasury stock		180
Total changes during the period		(527	)
Balance at the end of the period		(527	)

15

	(Millions of yen)
	Six months  ended September 30, 2010 (April 1 to September 30, 2010)
Total shareholders’ equity:
Balance at the beginning of the period		—
Changes during the period
Issuance of new stocks—exercise of stock acquisition rights		91
Net income		476
Acquisition of treasury stock		(708	)
Disposal of treasury stock		212
Increase due to share exchange		876,782
Total changes during the period		876,854
Balance at the end of the period		876,854
Stock acquisition rights:
Balance at the beginning of the period		—
Changes during the period
Net changes in items other than shareholders’ equity		2,362
Total changes during the period		2,362
Balance at the end of the period		2,362
Total net assets:
Balance at the beginning of the period		—
Changes during the period
Issuance of new stocks—exercise of stock acquisition rights		91
Net income		476
Acquisition of treasury stock		(708	)
Disposal of treasury stock		212
Increase due to share exchange		876,782
Net changes in items other than shareholders’ equity		2,362
Total changes during the period		879,217
Balance at the end of the period		879,217

16

(4) Notes on Going-Concern Assumption

None.

17

5. Supplementary Information

(1) Summary of Results of Operations

	(Millions of yen)
	Six months ended September 30, 2010 (April 1 to September 30, 2010)
Ordinary income and expenses:
Underwriting income:		1,261,384
Net premiums written		987,832
Deposits of premiums by policyholders		79,398
Life insurance premiums written		108,905
Underwriting expenses:		1,048,058
Net claims paid		607,279
Loss adjustment expenses		65,449
Net commissions and brokerage fees		176,065
Maturity refunds to policyholders		165,853
Life insurance claims paid		28,735
Investment income:		63,222
Interest and dividend income		78,453
Gains on sales of securities		5,839
Investment expenses:		24,913
Losses on sales of securities		2,201
Impairment losses on securities		6,827
Operating, general and administrative expenses		212,008
Other ordinary income and expenses		(737	)
Ordinary profit		38,888
Extraordinary gains and losses:
Extraordinary gains		2,015
Extraordinary losses		4,923
Net extraordinary losses		(2,908	)
Income before income taxes and non-controlling interests		35,980
Income taxes		2,793
Deferred income taxes		9,250
Total income taxes		12,043
Income before non-controlling interests		23,936
Non-controlling interests		(180	)
Net income		24,116

18

(2) Premiums Written and Claims Paid by Lines of Business (Consolidated)

Direct premiums written (including deposits of premiums by policyholders)

	(Millions of yen)
	Six months ended September 30, 2010 (April 1 to September 30, 2010)
Business line	Amount		% of total amount		Rate of change
			%		%
Fire and allied insurance		175,867		15.5		—
Marine insurance		29,665		2.6		—
Personal accident insurance		151,217		13.4		—
Voluntary automobile insurance		491,237		43.4		—
Compulsory automobile liability insurance		130,407		11.5		—
Others		153,474		13.6		—
Total		1,131,870		100.0		—
Deposits of premiums by policyholders		79,398		7.0		—
Net premiums written
	(Millions of yen)
	Six months ended September 30, 2010 (April 1 to September 30, 2010)
Business line	Amount		% of total amount		Rate of change
			%		%
Fire and allied insurance		114,169		11.6		—
Marine insurance		23,893		2.4		—
Personal accident insurance		96,874		9.8		—
Voluntary automobile insurance		490,656		49.7		—
Compulsory automobile liability insurance		124,069		12.6		—
Others		138,170		14.0		—
Total		987,832		100.0		—
Net claims paid
	(Millions of yen)
	Six months ended September 30, 2010 (April 1 to September 30, 2010)
Business line	Amount		% of total amount		Rate of change
			%		%
Fire and allied insurance		48,136		7.9		—
Marine insurance		11,798		1.9		—
Personal accident insurance		50,343		8.3		—
Voluntary automobile insurance		299,816		49.4		—
Compulsory automobile liability insurance		114,290		18.8		—
Others		82,893		13.7		—
Total		607,279		100.0		—

Note to the above three tables:

The above figures represent amounts before offsetting internal transactions among consolidated segments.

19

(3) Life Insurance Business (Consolidated)

Life insurance premiums

	(Millions of yen)
	Six months ended September 30, 2010 (April 1 to September  30, 2010)
	Amount		Rate of change
			%
Life insurance premiums		108,905		—

Note) The above figures represent amounts before offsetting internal transactions among consolidated segments.

Total amount of policies in force

	(Millions of yen)
	As of  September 30, 2010
	Amount		Rate of change
			%
Individual insurance		15,902,856		—
Individual annuities		277,171		—
Group insurance		3,024,206		—
Group annuities		—		—

Notes)

1. The above figures represent amounts before offsetting internal transactions among consolidated segments.

2. Amount of “Individual annuities” represents the sum of annuity fund at the beginning of annuity payment of contracts before the beginning of annuity payment and policy reserves for the contracts after the beginning of annuity payment.

Total amount of new policies

	(Millions of yen)
	Six months ended September 30, 2010 (April 1 to September 30, 2010)
	Net increase by new policies and conversion		New policies		Net increase by conversion
Individual insurance		1,536,763		1,536,763		—
Individual annuities		6,580		6,580		—
Group insurance		17,702		17,702		—
Group annuities		—		—		—

Notes)

1. The above figures represent amounts before offsetting internal transactions among consolidated segments.

2. Amount of “Net increase by new policies and conversion” for “Individual annuities” represents the amount of annuity fund at the beginning of annuity payment.

Annualized premiums of new policies (individual insurance and individual annuities)

	(Millions of yen)
	Six months ended September 30, 2010 (April 1 to September 30, 2010)
	Amount		Rate of change
			%
Annualized premiums of new policies		18,031		—

Note) The above figures represent amounts before offsetting internal transactions among consolidated segments.

20

Note Regarding Forward-looking Statements

This document includes “forward-looking statements” that reflect the information in relation to the NKSJ Holdings, Inc. (“NKSJ”). To the extent that statements in this document do not relate to historical or current facts, they constitute forward-looking statements. These forward-looking statements are based on the current assumptions and beliefs of NKSJ in light of the information currently available to NKSJ, and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause the actual results, performance, achievements or financial position of NKSJ, as the case may be, to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. NKSJ does not undertake or will not undertake any obligation to publicly update any forward-looking statements after the date of this document. Investors are advised to consult any further disclosures by NKSJ in their subsequent domestic filings in Japan and filings with, or submissions to, the U.S. Securities Exchange Commission pursuant to the U.S. Securities Exchange Act of 1934.

The risks, uncertainties and other factors referred to above include, but are not limited to, those below. The risks, uncertainties and other factors are also referred to in our domestic Quarterly Securities Reports.

(1) Effects of deterioration of economic and business conditions in Japan

(2) Risk of intensification of competition in the property and casualty insurance business

(3) Changes to laws, regulations, and systems

(4) Natural catastrophe risks related to insurance products

(5) Occurrence of losses exceeding projection

(6) Reinsurance risk

(7) Effects of declining stock price

(8) Effects of fluctuation in interest rate

(9) Credit risk

(10) Effects of fluctuation in foreign exchange rate

(11) Liquidity risk

(12) Life insurance business risks

(13) Overseas business risk

(14) Non-insurance business risk

(15) Credit rating downgrade

(16) Business interruption risk in case of natural disasters, etc.

(17) Information security risk

(18) Reputational risk

(19) System integration risk

(20) Risk of failure to adequately realize business integration synergies

(21) Risks related to merger of life insurance subsidiaries

(22) Other risks

21

[English Translation]

Summary of Consolidated Financial Results for the six months ended September 30, 2010

(Supplementary Information)

UNOFFICIAL TRANSLATION

This document is an unofficial English translation of the Japanese original.

Summary of Consolidated Financial Results

for the six months ended September 30, 2010

Supplementary Information

November 19, 2010

NKSJ Holdings, Inc.

(Stock code number : 8630)

Summary of Consolidated Financial Results for the six months ended September 30, 2010

Supplementary Information Contents

NKSJ Holdings, Inc.
Overview of Consolidated Financial Results for the six months ended September 30, 2010	3
Summary of Results of Operations by Lines of Business Segments	3
Sompo Japan Insurance Inc. (Non-consolidated)
Overview of Financial Results for the six months ended September 30, 2010	4
Summary of Results of Operations	4
Premiums Written and Claims Paid by Lines of Business	5
Net Incurred Loss related to Natural Disasters (which occurred in the period)	6
Breakdown of Operating, General and Administrative Expenses and Loss Adjustment Expenses	6
Reserve for Outstanding Losses and Claims	6
Ordinary Underwriting Reserves	6
Catastrophic Loss Reserve	6
NIPPONKOA Insurance Co., Ltd. (Non-consolidated)
Overview of Financial Results for the six months ended September 30, 2010	7
Summary of Results of Operations	7
Premiums Written and Claims Paid by Lines of Business	8
Net Incurred Loss related to Natural Disasters (which occurred in the period)	9
Breakdown of Operating, General and Administrative Expenses and Loss Adjustment Expenses	9
Reserve for Outstanding Losses and Claims	9
Ordinary Underwriting Reserves	9
Catastrophic Loss Reserve	9
2. Forecasts for the fiscal year ending March 31, 2011 (April 1, 2010 to March 31, 2011)
NKSJ Holdings, Inc. (Consolidated)	10
Sompo Japan Insurance Inc. (Non-consolidated)	10
NIPPONKOA Insurance Co., Ltd. (Non-consolidated)	10
3. Overview of Business Results of Principal Consolidated Subsidiaries
Sompo Japan Insurance Inc. (Non-consolidated)	11
Interim Balance Sheets	11
Interim Statements of Income	12
Premiums Written and Claims Paid by Lines of Business	13
Solvency Margin Ratio	14
Exposure to Structured Finance (As of September 30, 2010)	15
NIPPONKOA Insurance Co., Ltd. (Non-consolidated)	19
Interim Balance Sheets	19
Interim Statements of Income	20
Premiums Written and Claims Paid by Lines of Business	21
Solvency Margin Ratio	22
Investments in the securitized paper and subprime loans (As of September 30, 2010)	23

1

SONPO 24 Insurance Co., Ltd. (Non-Consolidated)	24
Interim Balance Sheets	24
Interim Statements of Income	25
Premiums Written and Claims Paid by Lines of Business	26
Solvency Margin Ratio	27
Saison Automobile and Fire Insurance Company, Limited (Non-consolidated)	28
Interim Balance Sheets	28
Interim Statements of Income	29
Premiums Written and Claims Paid by Lines of Business	30
Solvency Margin Ratio	31
Sompo Japan Himawari Life Insurance Co., Ltd. (Non-consolidated)	32
Interim Balance Sheets	32
Interim Statements of Income	33
Major Business Results
(Total amount of policies in force and total amount of new policies, Annualized premiums)	34
Solvency Margin Ratio	35
NIPPONKOA Life Insurance Co., Ltd. (Non-consolidated)	36
Interim Balance Sheets	36
Interim Statements of Income	37
Major Business Results
(Total amount of policies in force and total amount of new policies, Annualized premiums)	38
Solvency Margin Ratio	39
Sompo Japan DIY Life Insurance Co., Ltd. (Non-consolidated)	40
Interim Balance Sheets	40
Interim Statements of Income	41
Major Business Results
(Total amount of policies in force and total amount of new policies, Annualized premiums)	42
Solvency Margin Ratio	43
Supplementary Explanation	44
Calculation of ratios	44
Solvency margin ratio	44
4. Supplementary Data about Financial Results for the six months ended September 30, 2010 at Press Conference
Sompo Japan Insurance Inc. (Non-consolidated)	45
NIPPONKOA Insurance Co., Ltd. (Non-consolidated)	48
Sompo Japan Insurance Inc. and NIPPONKOA Insurance Co., Ltd. (Combined)	51
Note Regarding Forward-looking Statements	52

2

1. Overview of Consolidated Financial Results for the six months ended September 30, 2010

NKSJ Holdings, Inc.

Overview of Consolidated Financial Results for the six months ended September 30, 2010

			(Millions of yen)
			Six months ended September 30, 2010 (April 1 to September  30, 2010)
Ordinary income:	(1	)		1,329,799
Net premiums written	(2	)		987,832
Life insurance premiums written	(3	)		108,905
Ordinary profit	(4	)		38,888
Net income	(5	)		24,116

			(Millions of yen)
			Ordinary profit			Net income
Sompo Japan Insurance Inc. (Consolidated)	(6	)		22,216			15,355
+
NIPPONKOA Insurance Co., Ltd. (Consolidated)	(7	)		20,444			12,910
+
Consolidation adjustment	(8	)		(3,772	)		(4,148	)
=
NKSJ Holdings, Inc. (Consolidated)	(9	)		38,888			24,116

Note) The transaction related to the establishment of NKSJ Holdings, Inc. is accounted for under the purchase method as accounting methods for business combination.

The major component of the above “Consolidation adjustment” is the amount of adjustments due to the application of the purchase method.

Summary of Results of Operations by Lines of Business Segments

			(Millions of yen)
			Property and casualty insurance business								Life insurance business			Others			Total
			Domestic property and casualty insurance business						Overseas property and casualty insurance business
					Sompo Japan		NIPPONKOA
Net premiums written	(10	)		972,875		643,682		316,583		14,957		—			—			987,832
Life insurance premiums written	(11	)		—		—		—		—		108,905			—			108,905
Ordinary profit	(12	)		41,929		25,331		17,584		496		(2,369	)		(1,167	)		38,888
Net income	(13	)		27,467		17,230		11,064		149		(2,379	)		(1,121	)		24,116

Note) Ordinary profit and net income represent amounts after consolidation adjustments.

3

Sompo Japan Insurance Inc. (Non-consolidated)

Overview of Financial Results for the six months ended September 30, 2010

Summary of Results of Operations

			(Millions of yen)
			Six months ended September 30, 2009 (April 1 to September 30, 2009)			Six months ended September 30, 2010 (April 1 to September 30, 2010)			Increase (Decrease)			Rate of change
Ordinary income and expenses:
Underwriting income and expenses:
Direct premiums written (including deposits of premiums by policyholders)		(1)		727,313			737,131			9,817			1.3	%
Direct premiums written		(2)		673,086			677,684			4,598			0.7
(+)    Net premiums written		(3)		641,665			643,682			2,017			0.3
(–)    Net claims paid		(4)		440,894			399,085			(41,808	)		(9.5	)
(–)    Loss adjustment expenses		(5)		38,347			46,843			8,496			22.2
(–)    Net commissions and brokerage fees		(6)		107,227			107,566			339			0.3
(+)    Deposits of premiums by policyholders		(7)		54,227			59,446			5,218			9.6
(+)    Interest and dividend income on deposits of premiums, etc.		(8)		21,141			19,612			(1,529	)		(7.2	)
(–)    Maturity refunds and dividends to policyholders		(9)		74,707			109,736			35,029			46.9
(–)    Provision for reserve for outstanding losses and claims		(10)		(72,297	)		(33,344	)		38,953			—
(–)    Provision for underwriting reserves		(11)		(10,780	)		(31,319	)		(20,538	)		—
(+)    Other underwriting income and expenses		(12)		(7,102	)		(682	)		6,420			—
Gross underwriting margin		(13)		131,834			123,491			(8,342	)		(6.3	)
Operating, general and administrative expenses related to underwriting		(14)		111,925			107,074			(4,850	)		(4.3	)
Other income and expenses		(15)		(1,701	)		(2,243	)		(542	)		—
Underwriting profit		(16)		18,207			14,173			(4,034	)		(22.2	)
Investment income and expenses:
(+)    Interest and dividend income		(17)		46,319			43,199			(3,120	)		(6.7	)
(+)    Investment gains and losses on money trusts		(18)		(1,262	)		(414	)		848			—
(+)    Gains and losses on sales of securities		(19)		1,216			1,456			240			19.8
(–)    Impairment losses on securities		(20)		4,148			3,789			(359	)		(8.7	)
(+)    Transfer of interest and dividend income on deposits of premiums, etc.		(21)		(21,141	)		(19,612	)		1,529			—
(+)    Gains and losses on derivatives		(22)		7,329			7,044			(284	)		(3.9	)
(+)    Other investment income and expenses		(23)		(9,066	)		(12,750	)		(3,684	)		—
Gross investment margin		(24)		19,245			15,133			(4,112	)		(21.4	)
(–)    Operating, general and administrative expenses		(25)		118,006			112,706			(5,299	)		(4.5	)
(+)    Other ordinary income and expenses		(26)		(934	)		(813	)		121			—
Ordinary profit		(27)		32,138			25,105			(7,033	)		(21.9	)
Extraordinary gains and losses:
(+)    Extraordinary gains		(28)		15,205			3,129			(12,075	)		(79.4	)
(–)    Extraordinary losses		(29)		3,156			2,392			(763	)		(24.2	)
Net extraordinary gains		(30)		12,049			737			(11,312	)		(93.9	)
Income before income taxes		(31)		44,188			25,842			(18,345	)		(41.5	)
(–)    Income taxes		(32)		257			218			(39	)		(15.1	)
(–)    Refunded income taxes for prior period		(33)		(733	)		—			733			—
(–)    Deferred income taxes		(34)		13,948			7,309			(6,638	)		(47.6	)
Total income taxes		(35)		13,472			7,528			(5,944	)		(44.1	)
Net income		(36)		30,715			18,313			(12,401	)		(40.4	)
Underwriting result:
(+)    Net premiums written		(37)		641,665			643,682			2,017			0.3
(–)    Net claims paid		(38)		440,894			399,085			(41,808	)		(9.5	)
(–)    Loss adjustment expenses		(39)		38,347			46,843			8,496			22.2
(–)    Operating expenses:		(40)		219,152			214,641			(4,511	)		(2.1	)
Net commissions and brokerage fees		(41)		107,227			107,566			339			0.3
Operating, general and administrative expenses related to underwriting		(42)		111,925			107,074			(4,850	)		(4.3	)
Underwriting result		(43)		(56,728	)		(16,887	)		39,840			—
Ratios:
Net loss ratio	(%)	(44)		74.7			69.3			(5.4	)
Net expense ratio	(%)	(45)		34.2			33.3			(0.8	)
Underwriting result ratio	(%)	(46)		(8.8	)		(2.6	)		6.2

4

Sompo Japan Insurance Inc. (Non-consolidated)

Premiums Written and Claims Paid by Lines of Business

Direct premiums written (excluding deposits of premiums by policyholders)

	(Millions of yen)
	Six months ended September 30, 2009 (April 1 to September 30, 2009)								Six months ended September 30, 2010 (April 1 to September 30, 2010)
Business line	Amount		% of total amount			Rate of change			Amount		% of total amount			Rate of change
Fire and allied insurance		85,962		12.8	%		(1.3	)%		83,312		12.3	%		(3.1	)%
Marine insurance		14,498		2.2			(26.7	)		16,095		2.4			11.0
Personal accident insurance		68,055		10.1			(1.5	)		68,042		10.0			(0.0	)
Voluntary automobile insurance		321,841		47.8			(2.7	)		319,815		47.2			(0.6	)
Compulsory automobile liability insurance		88,480		13.1			(16.5	)		90,794		13.4			2.6
Others		94,248		14.0			(0.1	)		99,624		14.7			5.7
Total		673,086		100.0			(4.8	)		677,684		100.0			0.7
Deposits of premiums by policyholders		54,227		—			(26.7	)		59,446		—			9.6
Net premiums written
	(Millions of yen)
	Six months ended September 30, 2009 (April 1 to September  30, 2009)								Six months ended September 30, 2010 (April 1 to September 30, 2010)
Business line	Amount		% of total amount			Rate of change			Amount		% of total amount			Rate of change
Fire and allied insurance		67,676		10.5	%		(3.2	)%		67,519		10.5	%		(0.2	)%
Marine insurance		12,167		1.9			(27.5	)		12,939		2.0			6.3
Personal accident insurance		67,482		10.5			(1.6	)		67,788		10.5			0.5
Voluntary automobile insurance		322,609		50.3			(2.1	)		319,777		49.7			(0.9	)
Compulsory automobile liability insurance		82,320		12.8			(18.3	)		85,466		13.3			3.8
Others		89,407		13.9			0.1			90,191		14.0			0.9
Total		641,665		100.0			(4.9	)		643,682		100.0			0.3
Net claims paid
	(Millions of yen)
	Six months ended September 30, 2009 (April 1 to September 30, 2009)								Six months ended September 30, 2010 (April 1 to September 30, 2010)
Business line	Amount		Rate of change			Net loss ratio			Amount		Rate of change			Net loss ratio
Fire and allied insurance		28,980		1.5	%		44.5	%		27,943		(3.6	)%		43.3	%
Marine insurance		6,320		(12.6	)		56.5			7,448		17.8			61.2
Personal accident insurance		33,179		0.1			54.3			34,190		3.0			55.8
Voluntary automobile insurance		194,223		(2.0	)		67.6			190,544		(1.9	)		69.4
Compulsory automobile liability insurance		77,744		(4.7	)		101.8			78,071		0.4			98.8
Others		100,444		139.0			116.1			60,887		(39.4	)		71.8
Total		440,894		12.8			74.7			399,085		(9.5	)		69.3

5

Sompo Japan Insurance Inc. (Non-consolidated)

Net Incurred Loss related to Natural Disasters (which occurred in the period)

	(Millions of yen)
	Six months ended September 30, 2009						Six months ended September 30, 2010
	Net claims paid		Reserve for outstanding losses and claims		Net incurred loss		Net claims paid		Reserve for outstanding losses and claims		Net incurred loss
Fire and allied insurance		1,210		300		1,511		1,046		385		1,432
Voluntary automobile insurance		1,252		130		1,383		260		56		316
Others		66		44		110		97		14		111
Total		2,529		475		3,005		1,404		456		1,860

Notes)

1. This table represents net claims paid and reserve for outstanding losses and claims related to natural disasters which occurred in the period.

2. Net incurred loss = Net claims paid + Reserve for outstanding losses and claims

“Reserve for outstanding losses and claims” represents amounts deducting reinsurance recoverable on unpaid loss from direct insurance reserve for outstanding losses and claims.

Breakdown of Operating, General and Administrative Expenses and Loss Adjustment Expenses

	(Millions of yen)
	Six months ended September 30, 2009								Six months ended September 30, 2010
	Amount		Increase (Decrease)			Rate of change			Amount		Increase (Decrease)			Rate of change
						%								%
Personnel expenses		82,420		(1,993	)		(2.4	)		89,881		7,461			9.1
Non-personnel expenses		66,181		(3,211	)		(4.6	)		61,784		(4,397	)		(6.6	)
Others		7,751		(436	)		(5.3	)		7,884		132			1.7
Total		156,353		(5,641	)		(3.5	)		159,550		3,196			2.0

Reserve for Outstanding Losses and Claims

	(Millions of yen)
	Six months ended September 30, 2009					Six months ended September 30, 2010
	Balance		Change			Balance		Change
Fire and allied insurance		25,641		(6,962	)		25,359		(973	)
Marine insurance		12,244		(407	)		11,103		(729	)
Personal accident insurance		49,219		(1,417	)		54,333		691
Voluntary automobile insurance		298,650		4,073			305,687		3,628
Compulsory automobile liability insurance		55,775		(1,543	)		55,210		(608	)
Others		244,708		(66,040	)		202,763		(35,353	)
Total		686,240		(72,297	)		654,456		(33,344	)

Notes)

1. “Balance” of financial guarantee insurance is included in “Others”.

Six months ended September 30, 2009: 75,127  million yen Six months ended September 30, 2010: 47,260  million yen

2. “Change” of financial guarantee insurance is included in “Others”.

Six months ended September 30, 2009: (65,055) million yen Six months ended September 30, 2010: (33,404) million yen

Ordinary Underwriting Reserves

	(Millions of yen)
	Six months ended September 30, 2009					Six months ended September 30, 2010
	Balance		Change			Balance		Change
Fire and allied insurance		493,842		(6,806	)		489,156		(5,365	)
Marine insurance		10,477		557			9,412		636
Personal accident insurance		79,480		7,066			83,576		6,784
Voluntary automobile insurance		188,585		(1,825	)		185,107		1,555
Compulsory automobile liability insurance		405,704		(19,324	)		367,201		(19,413	)
Others		200,715		11,350			206,951		13,214
Total		1,378,806		(8,981	)		1,341,405		(2,588	)

Note) This table excludes reserve for maturity refunds and reserve for dividends to policyholders of savings-type insurance and includes underwriting reserves of household earthquake and compulsory automobile liability insurance.

Catastrophic Loss Reserve

	(Millions of yen)
	Six months ended September 30, 2009								Six months ended September 30, 2010								Year ended March 31, 2010
	Reversal		Provision		Balance		Balance ratio		Reversal		Provision		Balance		Balance ratio		Balance		Balance ratio
							%								%				%
Fire and allied insurance		—		9,388		138,939		105.1		—		9,554		158,079		119.9		148,525		105.4
Marine insurance		—		454		25,795		106.0		280		474		26,425		102.1		26,231		110.5
Personal accident insurance		159		2,112		89,638		66.4		946		2,125		85,766		63.3		84,587		67.5
Voluntary automobile insurance		33,938		19,611		33,182		5.1		31,552		19,472		26,528		4.1		38,609		6.0
Others		1,168		6,072		92,605		51.8		741		6,113		102,105		56.6		96,733		60.2
Total		35,265		37,639		380,162		34.1		33,521		37,740		398,906		35.8		394,687		36.2

Note) Balance ratio = Balance of catastrophic loss reserve / Net premiums written (excluding household earthquake and compulsory automobile liability insurance) × 100

As for the interim fiscal year, net premiums written are doubled for the calculation of balance ratio.

6

NIPPONKOA Insurance Co., Ltd. (Non-consolidated)

Overview of Financial Results for the six months ended September 30, 2010

Summary of Results of Operations

				(Millions of yen)
				Six months ended September 30, 2009 (April 1 to September 30, 2009)			Six months ended September 30, 2010 (April 1 to September 30, 2010)			Increase (Decrease)			Rate of change
Ordinary income and expenses:
Underwriting income and expenses:
Direct premiums written (including deposits of premiums by policyholders)		(1	)		353,205			353,189			(15	)		(0.0	)%
Direct premiums written		(2	)		335,424			333,562			(1,862	)		(0.6	)
(+)    Net premiums written		(3	)		319,749			316,583			(3,165	)		(1.0	)
(–)    Net claims paid		(4	)		194,075			194,837			762			0.4
(–)    Loss adjustment expenses		(5	)		17,577			17,628			51			0.3
(–)    Net commissions and brokerage fees		(6	)		54,069			52,746			(1,323	)		(2.4	)
(+)    Deposits of premiums by policyholders		(7	)		17,780			19,627			1,846			10.4
(+)    Interest and dividend income on deposits of premiums, etc.		(8	)		11,575			10,419			(1,155	)		(10.0	)
(–)    Maturity refunds and dividends to policyholders		(9	)		58,508			55,661			(2,847	)		(4.9	)
(–)    Reversal of reserve for outstanding losses and claims		(10	)		(10,649	)		(4,031	)		6,617			—
(–)    Reversal of underwriting reserves		(11	)		(43,664	)		(42,272	)		1,391			—
(+)    Other underwriting income and expenses		(12	)		(217	)		(1,039	)		(822	)		—
Gross underwriting margin		(13	)		78,970			71,021			(7,949	)		(10.1	)
Operating, general and administrative expenses related to underwriting		(14	)		59,015			59,118			103			0.2
Other income and expenses		(15	)		(1,382	)		(796	)		586			—
Underwriting profit		(16	)		18,573			11,107			(7,466	)		(40.2	)
Investment income and expenses:
(+)    Interest and dividend income		(17	)		22,722			21,644			(1,077	)		(4.7	)
(+)    Investment gains and losses on money trusts		(18	)		530			471			(58	)		(11.1	)
(+)    Gains and losses on sales of securities		(19	)		5,130			1,784			(3,345	)		(65.2	)
(–)    Impairment losses on securities		(20	)		363			1,177			813			223.5
(+)    Transfer of interest and dividend income on deposits of premiums, etc.		(21	)		(11,575	)		(10,419	)		1,155			—
(+)    Gains and losses on derivatives		(22	)		1,147			997			(150	)		(13.1	)
(+)    Other investment income and expenses		(23	)		(3,324	)		(1,961	)		1,363			—
Gross investment margin		(24	)		14,266			11,339			(2,927	)		(20.5	)
(–)    Operating, general and administrative expenses		(25	)		62,080			62,153			73			0.1
(+)    Other ordinary income and expenses		(26	)		25			338			313			1,243.0
Ordinary profit		(27	)		31,182			20,546			(10,636	)		(34.1	)
Extraordinary gains and losses:
(+)    Extraordinary gains		(28	)		169			600			431			254.9
(–)    Extraordinary losses		(29	)		3,809			2,204			(1,605	)		(42.1	)
Net extraordinary losses		(30	)		(3,640	)		(1,603	)		2,036			—
Income before income taxes		(31	)		27,541			18,942			(8,599	)		(31.2	)
(–)    Income taxes		(32	)		6,475			1,244			(5,231	)		(80.8	)
(–)    Refunded income taxes for prior period		(33	)		—			—			—			—
(–)    Deferred income taxes		(34	)		2,569			4,548			1,978			77.0
Total income taxes		(35	)		9,045			5,793			(3,252	)		(36.0	)
Net income		(36	)		18,496			13,148			(5,347	)		(28.9	)
Underwriting result:
(+)    Net premiums written		(37	)		319,749			316,583			(3,165	)		(1.0	)
(–)    Net claims paid		(38	)		194,075			194,837			762			0.4
(–)    Loss adjustment expenses		(39	)		17,577			17,628			51			0.3
(–)    Operating expenses:		(40	)		113,084			111,864			(1,219	)		(1.1	)
Net commissions and brokerage fees		(41	)		54,069			52,746			(1,323	)		(2.4	)
Operating, general and administrative expenses related to underwriting		(42	)		59,015			59,118			103			0.2
Underwriting result		(43	)		(4,987	)		(7,747	)		(2,759	)		—
Ratios:
Net loss ratio	(%)	(44	)		66.2			67.1			0.9
Net expense ratio	(%)	(45	)		35.4			35.3			(0.1	)
Underwriting result ratio	(%)	(46	)		(1.6	)		(2.4	)		(0.8	)

7

NIPPONKOA Insurance Co., Ltd. (Non-consolidated)

Premiums Written and Claims Paid by Lines of Business

Direct premiums written (excluding deposits of premiums by policyholders)

	(Millions of yen)
	Six months ended September 30, 2009 (April 1 to September 30, 2009)								Six months ended September 30, 2010 (April 1 to September 30, 2010)
Business line	Amount		% of total amount			Rate of change			Amount		% of total amount			Rate of change
Fire and allied insurance		55,255		16.5	%		(5.0	)%		55,550		16.7	%		0.5	%
Marine insurance		6,859		2.0			(30.4	)		7,410		2.2			8.0
Personal accident insurance		27,236		8.1			(5.5	)		26,810		8.0			(1.6	)
Voluntary automobile insurance		160,714		47.9			(1.8	)		158,024		47.4			(1.7	)
Compulsory automobile liability insurance		38,816		11.6			(15.1	)		39,452		11.8			1.6
Others		46,542		13.9			(3.7	)		46,314		13.9			(0.5	)
Total		335,424		100.0			(5.4	)		333,562		100.0			(0.6	)
Deposits of premiums by policyholders		17,780		—			(52.7	)		19,627		—			10.4
Net premiums written
	(Millions of yen)
	Six months ended September 30, 2009 (April 1 to September 30, 2009)								Six months ended September 30, 2010 (April 1 to September 30, 2010)
Business line	Amount		% of total amount			Rate of change			Amount		% of total amount			Rate of change
Fire and allied insurance		43,771		13.7	%		(5.5	)%		42,394		13.4	%		(3.1	)%
Marine insurance		6,646		2.1			(28.3	)		6,948		2.2			4.5
Personal accident insurance		27,583		8.6			(5.0	)		27,340		8.6			(0.9	)
Voluntary automobile insurance		160,451		50.2			(1.9	)		157,942		49.9			(1.6	)
Compulsory automobile liability insurance		37,132		11.6			(18.1	)		38,280		12.1			3.1
Others		44,164		13.8			(3.4	)		43,679		13.8			(1.1	)
Total		319,749		100.0			(5.7	)		316,583		100.0			(1.0	)
Net claims paid
	(Millions of yen)
	Six months ended September 30, 2009 (April 1 to September 30, 2009)								Six months ended September 30, 2010 (April 1 to September 30, 2010)
Business line	Amount		Rate of change			Net loss ratio			Amount		Rate of change			Net loss ratio
Fire and allied insurance		20,526		5.4	%		50.5	%		19,076		(7.1	)%		48.6	%
Marine insurance		3,398		3.8			53.4			2,930		(13.7	)		44.1
Personal accident insurance		15,323		(6.3	)		60.8			15,230		(0.6	)		60.7
Voluntary automobile insurance		97,268		0.4			66.4			101,635		4.5			70.5
Compulsory automobile liability insurance		35,612		(4.9	)		103.1			35,912		0.8			100.9
Others		21,945		(9.3	)		55.2			20,051		(8.6	)		51.0
Total		194,075		(1.8	)		66.2			194,837		0.4			67.1

8

NIPPONKOA Insurance Co., Ltd. (Non-consolidated)

Net Incurred Loss related to Natural Disasters (which occurred in the period)

	(Millions of yen)
	Six months ended September 30, 2009						Six months ended September 30, 2010
	Net claims paid		Reserve for outstanding losses and claims		Net incurred loss		Net claims paid		Reserve for outstanding losses and claims		Net incurred loss
Fire and allied insurance		1,426		810		2,236		1,312		413		1,725
Voluntary automobile insurance		564		58		623		124		17		141
Others		157		95		253		119		352		471
Total		2,148		964		3,113		1,557		782		2,339

Notes)

1. This table represents net claims paid and reserve for outstanding losses and claims related to natural disasters which occurred in the period.

2. Net incurred loss = Net claims paid + Reserve for outstanding losses and claims “Reserve for outstanding losses and claims” represents amounts deducting reinsurance recoverable on unpaid loss from direct insurance reserve for outstanding losses and claims.

Breakdown of Operating, General and Administrative Expenses and Loss Adjustment Expenses

	(Millions of yen)
	Six months ended September 30, 2009								Six months ended September 30, 2010
	Amount		Increase (Decrease)			Rate of change			Amount		Increase (Decrease)			Rate of change
Personnel expenses		42,587		1,178			2.8	%		44,369		1,781			4.2	%
Non-personnel expenses		33,122		(784	)		(2.3	)		31,469		(1,653	)		(5.0	)
Others		3,947		(179	)		(4.3	)		3,943		(3	)		(0.1	)
Total		79,657		214			0.3			79,782		124			0.2

Reserve for Outstanding Losses and Claims

	(Millions of yen)
	Six months ended September 30, 2009					Six months ended September 30, 2010
	Balance		Change			Balance		Change
Fire and allied insurance		22,628		(4,382	)		20,443		(1,768	)
Marine insurance		8,111		(467	)		5,262		(1,176	)
Personal accident insurance		20,398		(1,708	)		18,171		(1,092	)
Voluntary automobile insurance		134,642		(5,138	)		131,684		1,048
Compulsory automobile liability insurance		25,639		(663	)		25,526		(190	)
Others		60,956		1,711			62,752		(851	)
Total		272,377		(10,649	)		263,840		(4,031	)

Ordinary Underwriting Reserves

	(Millions of yen)
	Six months ended September 30, 2009					Six months ended September 30, 2010
	Balance		Change			Balance		Change
Fire and allied insurance		356,610		(4,627	)		358,455		(4,232	)
Marine insurance		5,339		(516	)		4,797		787
Personal accident insurance		30,521		1,842			31,041		2,144
Voluntary automobile insurance		91,896		(2,058	)		91,586		(109	)
Compulsory automobile liability insurance		186,223		(8,960	)		168,363		(8,763	)
Others		82,480		3,273			80,254		2,889
Total		753,071		(11,047	)		734,499		(7,284	)

Note) This table excludes reserve for maturity refunds and reserve for dividends to policyholders of savings-type insurance and includes underwriting reserves of household earthquake and compulsory automobile liability insurance.

Catastrophic Loss Reserve

	(Millions of yen)
	Six months ended September 30, 2009									Six months ended September 30, 2010									Year ended March 31, 2010
	Reversal		Provision		Balance		Balance ratio			Reversal		Provision		Balance		Balance ratio			Balance		Balance ratio
Fire and allied insurance		—		2,963		117,544		137.7	%		—		2,865		124,003		150.2	%		121,138		128.4	%
Marine insurance		—		305		18,941		142.5			301		307		19,035		137.0			19,028		141.1
Personal accident insurance		1,851		862		24,659		44.7			1,890		855		19,981		36.5			21,016		41.5
Voluntary automobile insurance		16,142		11,070		17,285		5.4			21,861		10,889		10,936		3.5			21,909		6.9
Others		294		2,119		50,200		56.8			394		2,107		53,214		60.9			51,501		64.6
Total		18,288		17,322		228,632		40.6			24,448		17,025		227,170		41.0			234,593		42.1

Note) Balance ratio = Balance of catastrophic loss reserve / Net premiums written (excluding household earthquake and compulsory automobile liability insurance) × 100

As for the interim fiscal year, net premiums written are doubled for the calculation of balance ratio.

9

2. Forecasts for the fiscal year ending March 31, 2011 (April 1, 2010 to March 31, 2011)

NKSJ Holdings, Inc. (Consolidated)

	(Yen in hundred millions)
	Fiscal year ended March 31, 2010 Result			Fiscal year ending March 31, 2011 Original forecast (A)			Fiscal year ending March 31, 2011 Revised forecast (B)			Increase (Decrease) (B)-(A)
Full-year
Ordinary income:		—			26,420			26,250			(170	)
Net premiums written		—			19,620			19,520			(100	)
Life insurance premiums written		—			1,820			2,060			240
Ordinary profit		—			480			480			—
Net income		—			250			250			—
Dividends per share		—	yen		20	yen		20	yen		—	yen

Fiscal year ending March 31, 2011 Revised forecast	Ordinary profit			Net income
Sompo Japan Insurance Inc. (Consolidated)		430			220
+
NIPPONKOA Insurance Co., Ltd. (Consolidated)		220			130
+
Consolidation adjustment		(170	)		(100	)
=
NKSJ Holdings, Inc. (Consolidated)		480			250

Note) Sompo Japan Insurance Inc. (Consolidated) includes Sompo Japan Nipponkoa Asset Management Co., Ltd.

<Note to consolidation adjustment>

The transaction related to the establishment of NKSJ Holdings, Inc. is accounted for under the purchase method as accounting methods for business combination. The major component of the “Consolidation adjustment” of the consolidated forecasts for the fiscal year ending March 31, 2011 is the amount of adjustments due to the application of the purchase method.

Sompo Japan Insurance Inc. (Non-consolidated)

	(Yen in hundred millions)
	Fiscal year ended March 31, 2010 Result			Fiscal year ending March 31, 2011 Original forecast (A)			Fiscal year ending March 31, 2011 Revised forecast (B)			Increase (Decrease) (B)-(A)
Full-year
Net premiums written		12,588			12,680			12,650			(30	)
(excluding compulsory automobile liability insurance)		10,941			11,045			10,965			(80	)
Net loss ratio		73.9	%		72.9	%		70.8	%		(2.2	)%
(excluding financial guarantee insurance and compulsory automobile liability insurance)		63.9	%		64.0	%		63.5	%		(0.5	)%
Net expense ratio		34.1	%		33.1	%		33.2	%		0.1	%
(excluding compulsory automobile liability insurance)		35.2	%		34.2	%		34.4	%		0.2	%
Combined ratio		107.9	%		106.1	%		104.0	%		(2.1	)%
(excluding financial guarantee insurance and compulsory automobile liability insurance)		99.1	%		98.3	%		98.0	%		(0.3	)%
Underwriting profit		(25	)		(140	)		60			200
Investment income and expenses		652			590			540			(50	)
Ordinary profit		503			315			470			155
Net income		427			170			270			100

Note) Net claims paid of financial guarantee insurance is excluded from the figures of net loss ratio and combined ratio, but net premiums written and loss adjustment expenses of it are not excluded.

NIPPONKOA Insurance Co., Ltd. (Non-consolidated)

	(Yen in hundred millions)
	Fiscal year ended March 31, 2010 Result			Fiscal year ending March 31, 2011 Original forecast (A)			Fiscal year ending March 31, 2011 Revised forecast (B)			Increase (Decrease) (B)-(A)
Full-year
Net premiums written		6,333			6,350			6,340			(10	)
(excluding compulsory automobile liability insurance)		5,591			5,601			5,594			(7	)
Net loss ratio		69.4	%		67.5	%		69.0	%		1.5	%
(excluding compulsory automobile liability insurance)		65.0	%		62.8	%		64.4	%		1.6	%
Net expense ratio		35.8	%		35.6	%		35.6	%		—
(excluding compulsory automobile liability insurance)		37.3	%		37.1	%		37.0	%		(0.1	)%
Combined ratio		105.2	%		103.2	%		104.6	%		1.4	%
(excluding compulsory automobile liability insurance)		102.2	%		99.9	%		101.5	%		1.6	%
Underwriting profit		22			(20	)		(60	)		(40	)
Investment income and expenses		312			320			320			—
Ordinary profit		293			250			220			(30	)
Net income		131			150			130			(20	)

10

3. Overview of Business Results of Principal Consolidated Subsidiaries

Sompo Japan Insurance Inc. (Non-consolidated)

Interim Balance Sheets

	(Millions of yen)
	As of September 30, 2010			As of March 31, 2010			Increase (Decrease)
	Amount			Amount
Assets:
Cash and deposits		73,594			118,455			(44,860	)
Call loans		57,800			46,800			11,000
Receivables under resale agreements		82,982			61,489			21,492
Monetary receivables bought		33,459			34,585			(1,126	)
Money trusts		6,170			6,773			(603	)
Securities		3,418,123			3,525,735			(107,612	)
Loans		468,196			476,173			(7,976	)
Tangible fixed assets		210,865			212,244			(1,379	)
Intangible fixed assets		96			758			(662	)
Other assets		354,294			437,671			(83,377	)
Deferred tax assets		163,130			121,347			41,782
Allowance for possible loan losses		(3,549	)		(5,068	)		1,519
Allowance for possible investment losses		(7,907	)		(7,734	)		(172	)
Total assets		4,857,255			5,029,232			(171,976	)
Liabilities:
Underwriting funds:		3,732,921			3,797,586			(64,664	)
Reserve for outstanding losses and claims		654,456			687,801			(33,344	)
Underwriting reserves		3,078,465			3,109,784			(31,319	)
Bonds		128,000			128,000			—
Other liabilities		161,779			181,855			(20,075	)
Reserve for retirement benefits		79,011			76,741			2,269
Reserve for bonus payments		17,365			13,405			3,959
Reserves under the special laws:		12,621			11,462			1,159
Reserve for price fluctuation		12,621			11,462			1,159
Total liabilities		4,131,699			4,209,051			(77,351	)
Net assets:
Shareholders’ equity:
Common stock		70,000			70,000			—
Capital surplus		24,229			24,229			—
Retained earnings		336,337			338,304			(1,967	)
Total shareholders’ equity		430,567			432,534			(1,967	)
Valuation and translation adjustments:
Unrealized gains on securities available for sale, net of tax		294,988			386,343			(91,355	)
Total valuation and translation adjustments		294,988			386,343			(91,355	)
Stock acquisition rights		—			1,302			(1,302	)
Total net assets		725,555			820,181			(94,625	)
Total liabilities and net assets		4,857,255			5,029,232			(171,976	)

11

Sompo Japan Insurance Inc. (Non-consolidated)

Interim Statements of Income

		(Millions of yen)
		Six months ended September 30, 2009 (April 1 to September 30, 2009)			Six months ended September 30, 2010 (April 1 to September 30, 2010)			Increase (Decrease)			Rate of change
		Amount			Amount
Ordinary income:			841,828			827,255			(14,573	)		(1.7	)%
Underwriting income:			800,641			790,050			(10,591	)		(1.3	)
Net premiums written			641,665			643,682			2,017			0.3
Deposits of premiums by policyholders			54,227			59,446			5,218			9.6
Interest and dividend income on deposits of premiums, etc.			21,141			19,612			(1,529	)		(7.2	)
Reversal of reserve for outstanding losses and claims			72,297			33,344			(38,953	)		(53.9	)
Reversal of underwriting reserves			10,780			31,319			20,538			190.5
Investment income:			37,523			33,840			(3,682	)		(9.8	)
Interest and dividend income			46,319			43,199			(3,120	)		(6.7	)
Investment gains on money trusts			0			0			0			3,591.6
Investment gains on trading securities			77			62			(14	)		(18.8	)
Gains on sales of securities			4,622			3,066			(1,556	)		(33.7	)
Transfer of interest and dividend income on deposits of premiums, etc.			(21,141	)		(19,612	)		1,529			—
Other ordinary income			3,663			3,363			(299	)		(8.2	)
Ordinary expenses:			809,690			802,150			(7,540	)		(0.9	)
Underwriting expenses:			668,807			666,558			(2,248	)		(0.3	)
Net claims paid			440,894			399,085			(41,808	)		(9.5	)
Loss adjustment expenses			38,347			46,843			8,496			22.2
Net commissions and brokerage fees			107,227			107,566			339			0.3
Maturity refunds to policyholders			74,646			109,687			35,041			46.9
Investment expenses:			18,277			18,707			429			2.4
Investment losses on money trusts			1,262			414			(847	)		(67.1	)
Losses on sales of securities			3,406			1,609			(1,797	)		(52.8	)
Impairment losses on securities			4,148			3,789			(359	)		(8.7	)
Operating, general and administrative expenses			118,006			112,706			(5,299	)		(4.5	)
Other ordinary expenses:			4,598			4,177			(421	)		(9.2	)
Interest paid			2,492			3,552			1,059			42.5
Ordinary profit			32,138			25,105			(7,033	)		(21.9	)
Extraordinary gains:			15,205			3,129			(12,075	)		(79.4	)
Gains on disposal of fixed assets			191			40			(150	)		(78.7	)
Other extraordinary gains			15,013			3,088			(11,925	)		(79.4	)
Extraordinary losses:			3,156			2,392			(763	)		(24.2	)
Losses on disposal of fixed assets			287			206			(81	)		(28.3	)
Impairment losses			—			259			259			—
Provision for reserves under the special laws:			2,868			1,159			(1,709	)		(59.6	)
Provision for reserve for price fluctuation			2,868			1,159			(1,709	)		(59.6	)
Other extraordinary losses			—			767			767			—
Income before income taxes			44,188			25,842			(18,345	)		(41.5	)
Income taxes			257			218			(39	)		(15.1	)
Refunded income taxes for prior period			(733	)		—			733			—
Deferred income taxes			13,948			7,309			(6,638	)		(47.6	)
Total income taxes			13,472			7,528			(5,944	)		(44.1	)
Net income			30,715			18,313			(12,401	)		(40.4	)
Underwriting result:
Net premiums written	(+)		641,665			643,682			2,017			0.3
Net claims paid	(–)		440,894			399,085			(41,808	)		(9.5	)
Loss adjustment expenses	(–)		38,347			46,843			8,496			22.2
Operating expenses:	(–)		219,152			214,641			(4,511	)		(2.1	)
Net commissions and brokerage fees			107,227			107,566			339			0.3
Operating, general and administrative expenses related to underwriting			111,925			107,074			(4,850	)		(4.3	)
Underwriting result			(56,728	)		(16,887	)		39,840			—
Underwriting profit			18,207			14,173			(4,034	)		(22.2	)
Ratios:
Net loss ratio	(%)		74.7			69.3			(5.4	)
Net expense ratio	(%)		34.2			33.3			(0.8	)
Underwriting result ratio	(%)		(8.8	)		(2.6	)		6.2

12

Sompo Japan Insurance Inc. (Non-consolidated)

Premiums Written and Claims Paid by Lines of Business

Direct premiums written (excluding deposits of premiums by policyholders)

	(Millions of yen)
	Six months ended September 30, 2009 (April 1 to September 30, 2009)								Six months ended September 30, 2010 (April 1 to September 30, 2010)
Business line	Amount		% of total amount			Rate of change			Amount		% of total amount			Rate of change
Fire and allied insurance		85,962		12.8	%		(1.3	)%		83,312		12.3	%		(3.1	)%
Marine insurance		14,498		2.2			(26.7	)		16,095		2.4			11.0
Personal accident insurance		68,055		10.1			(1.5	)		68,042		10.0			(0.0	)
Voluntary automobile insurance		321,841		47.8			(2.7	)		319,815		47.2			(0.6	)
Compulsory automobile liability insurance		88,480		13.1			(16.5	)		90,794		13.4			2.6
Others		94,248		14.0			(0.1	)		99,624		14.7			5.7
Total		673,086		100.0			(4.8	)		677,684		100.0			0.7
Deposits of premiums by policyholders		54,227		—			(26.7	)		59,446		—			9.6
Net premiums written
	(Millions of yen)
	Six months ended September 30, 2009 (April 1 to September 30, 2009)								Six months ended September 30, 2010 (April 1 to September 30, 2010)
Business line	Amount		% of total amount			Rate of change			Amount		% of total amount			Rate of change
Fire and allied insurance		67,676		10.5	%		(3.2	)%		67,519		10.5	%		(0.2	)%
Marine insurance		12,167		1.9			(27.5	)		12,939		2.0			6.3
Personal accident insurance		67,482		10.5			(1.6	)		67,788		10.5			0.5
Voluntary automobile insurance		322,609		50.3			(2.1	)		319,777		49.7			(0.9	)
Compulsory automobile liability insurance		82,320		12.8			(18.3	)		85,466		13.3			3.8
Others		89,407		13.9			0.1			90,191		14.0			0.9
Total		641,665		100.0			(4.9	)		643,682		100.0			0.3
Net claims paid
	(Millions of yen)
	Six months ended September 30, 2009 (April 1 to September 30, 2009)								Six months ended September 30, 2010 (April 1 to September 30, 2010)
Business line	Amount		Rate of change			Net loss ratio			Amount		Rate of change			Net loss ratio
Fire and allied insurance		28,980		1.5	%		44.5	%		27,943		(3.6	)%		43.3	%
Marine insurance		6,320		(12.6	)		56.5			7,448		17.8			61.2
Personal accident insurance		33,179		0.1			54.3			34,190		3.0			55.8
Voluntary automobile insurance		194,223		(2.0	)		67.6			190,544		(1.9	)		69.4
Compulsory automobile liability insurance		77,744		(4.7	)		101.8			78,071		0.4			98.8
Others		100,444		139.0			116.1			60,887		(39.4	)		71.8
Total		440,894		12.8			74.7			399,085		(9.5	)		69.3

13

Sompo Japan Insurance Inc. (Non-consolidated)

Solvency Margin Ratio

	(Millions of yen)
	As of September 30, 2010			As of March 31, 2010
(A) Total Solvency Margin		1,511,968			1,671,429
Capital and funds, etc.		428,908			414,156
Reserve for price fluctuation		12,621			11,462
Contingency reserve		611			611
Catastrophic loss reserve		472,834			466,702
General allowance for possible loan losses		279			992
Unrealized gains on securities (before tax effect deductions)		424,689			536,605
Net unrealized gains and losses on real estate		30,249			52,252
Excess amount of reserve for maturity refunds		—			—
Subordinated debt, etc.		128,000			128,000
Deductions		157,460			101,616
Others		171,234			162,261
(B) Total Risks		401,197			417,827
Underwriting risk (R1)		83,977			83,975
Underwriting risk for third-sector insurance products including accident, sickness and nursing-care insurance (R2)		—			—
Guaranteed interest rate risk (R3)		5,332			5,368
Investment risk (R4)		168,651			185,633
Business management risk (R5)		9,136			9,493
Major catastrophe risk (R6)		198,869			199,686
(C) Solvency Margin Ratio [ (A) / {(B) × 1/2} ] × 100		753.7	%		800.0	%

Note) The above figures are calculated based on Articles 86 and 87 of the Ordinance for Enforcement of the Insurance Business Law and the provisions of Notification No.��50 of the Ministry of Finance (1996).

14

Exposure to Structured Finance

As of September 30, 2010

November 19, 2010

Summary of Financial Guarantee Insurance

Gains/Losses for FY2010 1H

(Overall financial guarantee)

12.6 billion yen gain

Primarily due to some recovery from the past fiscal year’s loss payment for ABS-CDO guarantee.

(Unit: billions of yen)

Overall financial guarantee (Gains/Losses)

FY2007

FY2008

FY2009

FY2009 1H

FY2010 1H

Loss payment (*1)

0.1

(37.9)

(63.8)

(59.2)

(18.5)

Provision/Reversal of Loss Reserves (*2)

(30.0)

(109.9)

55.7

60.4

31.1

Gains/Losses

(29.9)

(147.9)

(8.0)

1.1

12.6

*1 Including commutation.

*2 Iincluding gains/losses of exchange hedge transaction.

Net exposure to ABS-CDOs

Net exposure to ABS-CDOs (after deduction of loss reserves) reduced to 37.1 billion yen. (Decreased by 6.4 billion yen since March 31, 2010)

(unit: billions of yen)

300.0

259.4

200.0

100.0

78.9

43.5

37.1

0.0

(Unit: billions of yen)

ABS-CDOs (Insured Amount)

3/31/2008

3/31/2009

3/31/2010

9/30/2010

Total of Insured Amount

289.4

218.0

123.1

91.0

Outstanding Loss Reserves

(30.0)

(139.0)

(79.5)

(53.9)

Insured Amount Net of Loss Reserves

259.4

78.9

43.5

37.1

15

<Appendix1> Financial Guarantee Insurance

(As of September 30, 2010, Unit: billions of yen, USD/JPY=83.82)

Insured Amount

Gains/Losses

Categories

Outstanding

Insured

for FY2010 1H

Direct Insurance

Treaty Reinsurance

Total

Loss Reserve

Amount Net of

(*9)

(*6)

(*7)

(*8)

Loss Reserves

ABS CDOs (backed by pools of asset backed securities) (*1)

90.5

0.5

91.0

53.9

37.1

13.0

CDOs

Corporate CDOs (backed by pools of single corporate credits)

(*2)

140.4

1.1

141.6

-

141.6

-

CDOs Total

231.0

1.6

232.6

53.9

178.7

13.0

RMBS (*3)

Global RMBS

-

9.8

9.8

0.5

9.2

(0.2)

Domestic RMBS

34.0

-

34.0

-

34.0

-

RMBS Total

34.0

9.8

43.9

0.5

43.3

(0.2)

ABS

CMBS (*4)

-

-

-

-

-

-

Other ABS

Global ABS (*5)

3.0

22.8

25.8

0.5

25.3

0.0

Domestic ABS

7.5

-

7.5

-

7.5

-

Other ABS Total

10.5

22.8

33.3

0.5

32.8

0.0

ABS Total

44.6

32.7

77.3

1.1

76.2

-

Public Finance

-

169.1

169.1

0.1

168.9

(0.1)

Total

275.6

203.4

479.1

55.2

423.8

12.6

*1 ABS CDOs (backed by pools of asset backed securities): The securities backed by securitized assets such as the RMBS, CDOs and CLOs.

*2 Corporate CDOs (backed by pools of single corporate credits): The securities backed by assets such as corporate bonds, loans and CDS.

*3 RMBS: Asset Backed Securities where underlying assets are residential mortgages. 93% of RMBS are rated investment grade (BBB or above) including AAA ratings for 79%.

*4 CMBS: Asset-backed securities where underlying assets are commercial mortgage loans.

*5 5% of global ABS are U.S. consumer loan-related ABS, while others are mainly related to corporate credit (e.g., leasing receivables).

*6 “Direct Insurance” includes facultative reinsurance policies and 8.5 billion yen of Direct Insurance to cover U.S. monoline guaranteed notes.

*7 “Treaty Reinsurance” is a portfolio-based reinsuranceis wherea certain parts of policies underwritten by an primary insurer are ceded automatically to the reinsurer, Sompo Japan, in accordance with the conditions agreed by the primary insurer and the reinsurer.

*8 Recoverable reserve for the transaction which was terminated by claim payment is not included in “Outstanding Loss Reserve”.

*9 Total amount of 12.6 billion yen gain is comprised of 18.5 billion yen of loss payment offset by 33.4 billion yen of reversal of loss reserve and 2.2 billion yen losses of foreign exchange hedge transaction for loss reserve. Financial Guarantee Insurance is not supposed to book mark-to-market unrealized gains/losses through income statement as it is an insurance policy.

<Appendix2> List of Guarantee for ABS CDOs (Excl. Treaty Reinsurance)

(As of September 30, 2010, Unit: billions of yen, USD/JPY=83.82)

Policy No. Issue Fiscal Insured Sub- Distribution of underlying assets rating Ratio of

Rating (*2) Year Amount ordination Below subprime

(*1) AAA AA A BBB Default

(S&P/MDY) Issued (*3) Ratio (*4) BBB RMBS

(*5)

Guarantee for CDO(1) AA/Caa3 2003 8.3 17% 29% 8% 5% 19% 39% 5.5% 0%

AAA/Aa3 2004 5.1 55%

Guarantee for CDO(2) (*6) 32% 34% 0% 0% 34% 24.0% 0%

AAA/Aa3 2004 10.0 31%

Guarantee for CDO(7) CCC+/C 2006 16.7 9% 2% 13% 5% 7% 73% 0.0% 30%

Guarantee for CDO(9) -/C 2006 25.1 23% 2% 6% 3% 4% 86% 23.3% 8%

Guarantee for CDO(11) CC/Caa1 2004 25.1 19% 5% 14% 20% 14% 47% 16.2% -

Total of ABS CDOs 90.5 22% 8% 13% 5% 7% 67% 11.8% -

Insured Amount Net of Loss Reserves 36.6

*1 Previously listed Guarantee for CDO (3), (4), (5), (6), (8), (10) and (12) have been excluded from above as they have been terminated due to the commutation or the full redemption of tranches guaranteed by us.

*2 Issue ratings are as of October 31, 2010.

*3 Insured amount is amount of principal insured, and some policies also insure interest payments. If a principal/interest shortfall occurs, Sompo Japan will become liable for the guarantee obligation.

*4 Subordination Ratio is a ratio of portions subordinated to our guaranteed tranche for the underlying assets. A redemption of senior tranche results in an increase of Subordination Ratio.

*5 Default of underlying assets is determined by the default definition of each transaction through detailed scrutiny and the default amount is determined based on adjustment by recovery.

*6 Guarantee for CDO(2) insures different two classes of the same CDO.

16

<Appendix3> Summary of Guarantee for Corporate CDOs (Excl. Treaty Reinsurance)

The total outstanding of insured corporate CDO (direct underwriting) amounted to 140.4 billion yen as of September 30, 2010. As a result of overall scrutiny of the individual contracts, there are no losses expected at this point.

Average residual period of all direct underwritten corporate CDO guarantees is approximately 2.1 years. Approximately 82% of our exposure or 115.0 billion yen is to be redeemed by the end of FY2012.

Each corporate CDO is well diversified with approximately 150 reference corporations. Thus a potential impact by default of one reference company would be limited.

We don’t see any concentration to particular sector or corporation. For example, exposure to financial institutions which is the largest sector in the reference corporations accounts for around 13%.

Issue rating

S&P Rating

A+

0.05%

A-

18%

AA- AAA

12% 46%

AA

12%

AA+

12%

Moody’s Rating

Baa1

18%

A1 Aaa

12% 46%

Aa1

24%

Run off exposure

(Unit: billions of yen)

450.0

400.0 Result Projection

350.0

300.0

250.0

200.0

150.0

100.0

50.0

0.0

3/31/08 3/31/09 3/31/10 9/30/10 3/31/11 3/31/12 3/31/13 3/31/14 3/31/15

(Note) Rating distribution by S&P as of October 31, 2010. For transactions without S&P rating, we applied Moody’s rating instead.

(Note) Rating distribution by Moody’s as of October 31, 2010. For transactions we without applied Moody’s rating, S&P’s rating instead.

(Note) Estimated future exposure was translated at the exchange rate as of September 30, 2010.

<Appendix4> Summary of Treaty Reinsurance

We underwrite the treaty reinsurance from Ambac Assuance Corp. (“AAC”), U.S. monoline insurance company, as the primary insurer. The total insured amount of the treaty reinsurance amounted to 203.4 billion yen as of September 30, 2010. Approximately 83% of the treaty reinsurance or 169.1 billion yen is classified as financial guarantee insurance for public finance including general obligation bonds of U.S. municipals and bonds issued by public utility companies such as electric power and railroad. Insured amount of each reinsurance is small and reinsurance portfolio is well diversified. Loss reserves are booked appropriately for the reinsurance policies where claim payments are expected.

Under this reinsurance contract, we will become liable for claim payment only when the original bonds default, for example, do not make regularly scheduled payment of principal or interest. Reinsurance is not an exposure to the primary insurer. Furthermore, Ambac Financial Group, Inc. (“AFG”), which is holding company of AAC, filed for a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code on November 8, 2010.

This will have no influence on the reinsurance agreement between the primary insurer and us.

Scheme of Treaty Reinsurance

Ambac Financial Group, Inc. (Holding company)

AFG filed for a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code on November 8, 2010.

Policyholders

Original bonds

(e.g. Public finance)

Risk of the original bonds

Ambac Assurance Corp. (Monoline insurance company)

AAC has been under control of Wisconsin insurance regulator since March 2010 and is currently in runoff for the benefit of policyholders.

Primary insurer

Risk of the original bonds

Partial reinsurance

We insure the default of the original bonds.

Sompo Japan Insurance Inc.

Reinsurer

17

<Appendix 5> Structured Finance Exposure in Our Investment Portfolio

(As of September 30, 2010, Unit: billions of yen, USD/JPY=83.82)

Outstanding Gains/Losses for FY 2010 1H

Categories Balance Gains/Losses Unrealized

Charged to P/L Gains/Losses Total

ABS CDOs (backed by pools of asset backed securities) (*1) 0.0 0.0 - 0.0

CDOs Corporate CDOs (backed by pools of single corporate credits) (*2) - - - -

CDOs Total 0.0 0.0 - 0.0

ABS RMBS (*3)

Global RMBS 1.9 - (0.4) (0.4)

Domestic RMBS 28.6 - 1.3 1.3

RMBS Total 30.6 - 0.8 0.8

CMBS

Global CMBS 0.8 - (0.2) (0.2)

Domestic CMBS 12.0 - - (0.3) (0.3)

CMBS Total 12.8 - (0.5) (0.5)

Other ABS

Global ABS 0.7 - (0.1) (0.1)

Domestic ABS - - - -

Other ABS Total 0.7 - (0.1) (0.1)

ABS Total 44.3 - 0.0 0.0

Investment in SIV - - - - -

Leveraged Finance (*4) 1.8 - - -

Total 46.1 0.0 0.0 0.0

Reference: Hedge funds (U.S. subprime loans related exposure) 1.0 Net of the long position and the short position

*1 Global transactions only (Below BBB).

*2 Excluding public finance CLO.

*3 Excluding RMBS issued by government sponsored enterprises. Most of the RMBS are rated investment grade (BBB or above), and 82% are rated AAA. Exposure to U.S. housing related government-sponsored enterprises (GSEs)’s RMBS and Agency Bonds amounted to 61.8 billion yen (increased by 0.4 billion yen since March 31, 2010).

No impairment losses were recognized for the 1st half of the fiscal year ended March 31, 2011.

*4 Leveraged Finance: Finance where funding are provided for corporate mergers and acquisitions, mainly based on cash flows of acquired companies. Domestic transactions only.

18

NIPPONKOA Insurance Co., Ltd. (Non-consolidated)

Interim Balance Sheets

	(Millions of yen)
	As of September 30, 2010			As of March 31, 2010			Increase (Decrease)
	Amount			Amount
Assets:
Cash and deposits		90,069			80,793			9,275
Call loans		40,000			50,000			(10,000	)
Monetary receivables bought		3,794			6,129			(2,334	)
Money trusts		56,792			56,752			40
Securities		1,746,517			1,822,848			(76,331	)
Loans		212,653			227,417			(14,764	)
Tangible fixed assets		127,902			130,437			(2,535	)
Intangible fixed assets		529			534			(4	)
Other assets		158,196			159,263			(1,067	)
Deferred tax assets		73,915			60,392			13,522
Allowance for possible loan losses		(2,173	)		(2,106	)		(66	)
Total assets		2,508,197			2,592,464			(84,267	)
Liabilities:
Underwriting funds:		2,012,985			2,059,290			(46,304	)
Reserve for outstanding losses and claims		263,840			267,872			(4,031	)
Underwriting reserves		1,749,145			1,791,418			(42,272	)
Other liabilities		54,142			65,184			(11,041	)
Reserve for retirement benefits		23,640			22,583			1,056
Reserve for bonus payments		5,780			6,078			(297	)
Reserve for bonus payments to directors		—			41			(41	)
Reserves under the special laws:		7,183			5,643			1,540
Reserve for price fluctuation		7,183			5,643			1,540
Total liabilities		2,103,732			2,158,821			(55,088	)
Net assets:
Shareholders’ equity:
Common stock		91,249			91,249			—
Capital surplus		46,702			46,702			—
Retained earnings		123,731			117,202			6,529
Total shareholders’ equity		261,682			255,153			6,529
Valuation and translation adjustments:
Unrealized gains on securities available for sale, net of tax		137,451			175,808			(38,357	)
Deferred gains or losses on hedges		5,330			2,115			3,214
Total valuation and translation adjustments		142,781			177,924			(35,142	)
Stock acquisition rights		—			565			(565	)
Total net assets		404,464			433,642			(29,178	)
Total liabilities and net assets		2,508,197			2,592,464			(84,267	)

19

NIPPONKOA Insurance Co., Ltd. (Non-consolidated)

Interim Statements of Income

		(Millions of yen)
		Six months ended September 30, 2009 (April 1 to September 30, 2009)			Six months ended September 30, 2010 (April 1 to September 30, 2010)			Increase (Decrease)			Rate of change
		Amount			Amount
Ordinary income:			423,767			412,305			(11,461	)		(2.7	)%
Underwriting income:			403,425			392,950			(10,474	)		(2.6	)
Net premiums written			319,749			316,583			(3,165	)		(1.0	)
Deposits of premiums by policyholders			17,780			19,627			1,846			10.4
Interest and dividend income on deposits of premiums, etc.			11,575			10,419			(1,155	)		(10.0	)
Reversal of reserve for outstanding losses and claims			10,649			4,031			(6,617	)		(62.1	)
Reversal of underwriting reserves			43,664			42,272			(1,391	)		(3.2	)
Investment income:			19,662			18,613			(1,049	)		(5.3	)
Interest and dividend income			22,722			21,644			(1,077	)		(4.7	)
Investment gains on money trusts			732			609			(122	)		(16.8	)
Gains on sales of securities			6,627			5,712			(914	)		(13.8	)
Transfer of interest and dividend income on deposits of premiums, etc.			(11,575	)		(10,419	)		1,155			—
Other ordinary income			678			741			62			9.2
Ordinary expenses:			392,584			391,759			(825	)		(0.2	)
Underwriting expenses:			324,454			321,928			(2,525	)		(0.8	)
Net claims paid			194,075			194,837			762			0.4
Loss adjustment expenses			17,577			17,628			51			0.3
Net commissions and brokerage fees			54,069			52,746			(1,323	)		(2.4	)
Maturity refunds to policyholders			58,503			55,646			(2,856	)		(4.9	)
Investment expenses:			5,395			7,273			1,877			34.8
Investment losses on money trusts			202			138			(63	)		(31.6	)
Losses on sales of securities			1,496			3,928			2,431			162.5
Impairment losses on securities			363			1,177			813			223.5
Operating, general and administrative expenses			62,080			62,153			73			0.1
Other ordinary expenses:			653			402			(250	)		(38.4	)
Interest paid			27			16			(10	)		(39.0	)
Ordinary profit			31,182			20,546			(10,636	)		(34.1	)
Extraordinary gains:			169			600			431			254.9
Gains on disposal of fixed assets			169			35			(133	)		(79.1	)
Other extraordinary gains			—			565			565			—
Extraordinary losses:			3,809			2,204			(1,605	)		(42.1	)
Losses on disposal of fixed assets			106			98			(7	)		(6.9	)
Impairment losses			68			402			334			489.5
Provision for reserves under the special laws:			1,293			1,540			246			19.1
Provision for reserve for price fluctuation			1,293			1,540			246			19.1
Other extraordinary losses			2,341			162			(2,179	)		(93.1	)
Income before income taxes			27,541			18,942			(8,599	)		(31.2	)
Income taxes			6,475			1,244			(5,231	)		(80.8	)
Deferred income taxes			2,569			4,548			1,978			77.0
Total income taxes			9,045			5,793			(3,252	)		(36.0	)
Net income			18,496			13,148			(5,347	)		(28.9	)
Underwriting result:
Net premiums written	(+)		319,749			316,583			(3,165	)		(1.0	)
Net claims paid	(–)		194,075			194,837			762			0.4
Loss adjustment expenses	(–)		17,577			17,628			51			0.3
Operating expenses:	(–)		113,084			111,864			(1,219	)		(1.1	)
Net commissions and brokerage fees			54,069			52,746			(1,323	)		(2.4	)
Operating, general and administrative expenses related to underwriting			59,015			59,118			103			0.2
Underwriting result			(4,987	)		(7,747	)		(2,759	)		—
Underwriting profit			18,573			11,107			(7,466	)		(40.2	)
Ratios:
Net loss ratio	(%)		66.2			67.1			0.9
Net expense ratio	(%)		35.4			35.3			(0.1	)
Underwriting result ratio	(%)		(1.6	)		(2.4	)		(0.8	)

20

NIPPONKOA Insurance Co., Ltd. (Non-consolidated)

Premiums Written and Claims Paid by Lines of Business

Direct premiums written (excluding deposits of premiums by policyholders)

	(Millions of yen)
	Six months ended September 30, 2009 (April 1 to September 30, 2009)								Six months ended September 30, 2010 (April 1 to September 30, 2010)
Business line	Amount		% of total amount			Rate of change			Amount		% of total amount			Rate of change
Fire and allied insurance		55,255		16.5	%		(5.0	)%		55,550		16.7	%		0.5	%
Marine insurance		6,859		2.0			(30.4	)		7,410		2.2			8.0
Personal accident insurance		27,236		8.1			(5.5	)		26,810		8.0			(1.6	)
Voluntary automobile insurance		160,714		47.9			(1.8	)		158,024		47.4			(1.7	)
Compulsory automobile liability insurance		38,816		11.6			(15.1	)		39,452		11.8			1.6
Others		46,542		13.9			(3.7	)		46,314		13.9			(0.5	)
Total		335,424		100.0			(5.4	)		333,562		100.0			(0.6	)
Deposits of premiums by policyholders		17,780		—			(52.7	)		19,627		—			10.4
Net premiums written
	(Millions of yen)
	Six months ended September 30, 2009 (April 1 to September 30, 2009)								Six months ended September 30, 2010 (April 1 to September 30, 2010)
Business line	Amount		% of total amount			Rate of change			Amount		% of total amount			Rate of change
Fire and allied insurance		43,771		13.7	%		(5.5	)%		42,394		13.4	%		(3.1	)%
Marine insurance		6,646		2.1			(28.3	)		6,948		2.2			4.5
Personal accident insurance		27,583		8.6			(5.0	)		27,340		8.6			(0.9	)
Voluntary automobile insurance		160,451		50.2			(1.9	)		157,942		49.9			(1.6	)
Compulsory automobile liability insurance		37,132		11.6			(18.1	)		38,280		12.1			3.1
Others		44,164		13.8			(3.4	)		43,679		13.8			(1.1	)
Total		319,749		100.0			(5.7	)		316,583		100.0			(1.0	)
Net claims paid
	(Millions of yen)
	Six months ended September 30, 2009 (April 1 to September  30, 2009)								Six months ended September 30, 2010 (April 1 to September  30, 2010)
Business line	Amount		Rate of change			Net loss ratio			Amount		Rate of change			Net loss ratio
Fire and allied insurance		20,526		5.4	%		50.5	%		19,076		(7.1	)%		48.6	%
Marine insurance		3,398		3.8			53.4			2,930		(13.7	)		44.1
Personal accident insurance		15,323		(6.3	)		60.8			15,230		(0.6	)		60.7
Voluntary automobile insurance		97,268		0.4			66.4			101,635		4.5			70.5
Compulsory automobile liability insurance		35,612		(4.9	)		103.1			35,912		0.8			100.9
Others		21,945		(9.3	)		55.2			20,051		(8.6	)		51.0
Total		194,075		(1.8	)		66.2			194,837		0.4			67.1

21

NIPPONKOA Insurance Co., Ltd. (Non-consolidated)

Solvency Margin Ratio

	(Millions of yen)
	As of September 30, 2010			As of March 31, 2010
(A) Total Solvency Margin		800,633			840,210
Capital and funds, etc.		261,007			249,698
Reserve for price fluctuation		7,183			5,643
Contingency reserve		13			12
Catastrophic loss reserve		279,573			285,675
General allowance for possible loan losses		154			40
Unrealized gains on securities (before tax effect deductions)		189,711			242,132
Net unrealized gains and losses on real estate		23,551			24,275
Excess amount of reserve for maturity refunds		—			—
Subordinated debt, etc.		—			—
Deductions		13,269			13,269
Others		52,707			46,002
(B) Total Risks
		228,494			226,293
Underwriting risk(R1)		39,282			39,271
Underwriting risk for third-sector insurance products including accident, sickness and nursing-care insurance (R2)		1			1
Guaranteed interest rate risk(R3)		3,055			3,088
Investment risk(R4)		77,583			85,444
Business management risk (R5)		5,072			7,492
Major catastrophe risk(R6)		133,722			121,948
(C) Solvency Margin Ratio
[ (A) / {(B) × 1/2} ] × 100		700.7	%		742.5	%

Note) The above figures are calculated based on Articles 86 and 87 of the Ordinance for Enforcement of the Insurance Business Law and the provisions of Notification No. 50 of the Ministry of Finance (1996).

22

NIPPONKOA Insurance Co., Ltd. (Non-consolidated)

Investments in the securitized paper and subprime loans (As of September 30, 2010)

Investments by NIPPONKOA in the securitized paper, as of September 30, 2010, are as follows.

1. SPEs (Special Purpose Entities)

None.

2. CDOs (Collateralized Debt Obligations)

	(Billions of yen)
	As of September 30, 2010						(Reference) As of March 31, 2010
	Fair value		Unrealized gains or losses		Impairment losses		Fair value		Unrealized gains or losses		Impairment losses
CDOs		8.4		0.1		—		7.8		0.1		—
Rated		8.0		—		—		7.2		—		—
Non-rated		0.4		0.1		—		0.6		0.1		—

(Notes)

(1) NIPPONKOA recognized impairment on securities whose fair value is determinable as of the balance sheet date if the fair value declined by 30% or more from carrying value. Also 30% rule is applied to the securities in the table below.

(2) Out of the rated CDOs, 12% is rated AAA, 13% is rated AA, 63% is rated A, and 12% is rated BB.

(3) All of the underlying collateral pool for CDOs are assets supported by the corporate credits.

(4) 95% of the CDOs is domestic and 5% is overseas.

(5) The ratios for categorizations of the rated CDOs and categorizations of the CDOs by region are calculated using the fair value.

(6) Other than the figures in the table above, related to CDOs, NIPPONKOA recorded 0.7 billion yen of gains on derivative financial instruments.

3. Other subprime/Alt-A exposure

None.

4. CMBS (Commercial Mortgage-Backed Security)

	(Billions of yen)
	As of September 30, 2010							(Reference) As of March 31, 2010
	Fair value		Unrealized gains or losses			Impairment losses		Fair value		Unrealized gains or losses			Impairment losses
CMBS		6.4		(0.3	)		—		8.8		(0.3	)		(0.1	)
Domestic		6.4		(0.3	)		—		8.8		(0.3	)		(0.1	)
Foreign		—		—			—		—		—			—

(Note) Amount in impairment losses includes the loss on evaluation of securities and other investment expenses.

5. Leveraged finance

None.

6. CDS (Credit Default Swap)

NIPPONKOA does not hold CDS that reference the securitized paper including CDOs. NIPPONKOA holds CDS that reference a single credit of a firm (7.0 billion yen of short commitment notional value, 0.0 billion yen of fair value, 0.0 billion yen of valuation gain).

[Definitions of securitized assets]

• SPEs: Special Purpose Entities. A general term of special purpose entities including SIV (Structured Investment Vehicle) that are specialized in investment of securitized papers.

• CDOs: Collateralized Debt Obligations. A securitized notes, which was supported, by asset pool of number of underlying debt securities and loans.

• Alt-A: A type of U.S. mortgage. Alt-A (Mezzanine) is placed in the middle of prime loan, a loan for borrowers with higher credit score, and subprime loan, a loan for borrowers with lower credit score.

• CMBS: Commercial Mortgage-Backed Security. An instrument that securitized the mortgage loans for commercial real estate.

• CDS: Credit Default Swap. A swap contract involving trading of credits, which reference the creditworthiness of a corporate or securitized paper, called a reference credit (entity).

23

SONPO 24 Insurance Co., Ltd. (Non-consolidated)

Interim Balance Sheets

	(Millions of yen)
	As of September 30, 2010			As of March 31, 2010			Increase (Decrease)
	Amount			Amount
Assets:
Cash and deposits		2,002			1,851			150
Securities		15,907			15,618			288
Tangible fixed assets		167			182			(15	)
Other assets		631			810			(179	)
Total assets		18,708			18,463			245
Liabilities:
Underwriting funds:		8,757			8,538			218
Reserve for outstanding losses and claims		2,645			2,333			312
Underwriting reserves		6,111			6,204			(93	)
Other liabilities		1,311			1,443			(132	)
Reserve for retirement benefits		90			79			11
Reserve for bonus payments		82			92			(10	)
Reserves under the special laws:		21			20			1
Reserve for price fluctuation		21			20			1
Deferred tax liabilities		87			18			68
Total liabilities		10,350			10,193			156
Net assets:
Shareholders’ equity:
Common stock		19,000			19,000			—
Capital surplus		19,000			19,000			—
Retained earnings		(29,795	)		(29,763	)		(32	)
Total shareholders’ equity		8,204			8,236			(32	)
Valuation and translation adjustments:
Unrealized gains on securities available for sale, net of tax		154			32			121
Total valuation and translation adjustments		154			32			121
Total net assets		8,358			8,269			88
Total liabilities and net assets		18,708			18,463			245

24

SONPO 24 Insurance Co., Ltd. (Non-consolidated)

Interim Statements of Income

			(Millions of yen)
			Six months ended September 30, 2009 (April 1 to September 30, 2009)			Six months ended September 30, 2010 (April 1 to September 30, 2010)			Increase (Decrease)			Rate of change
			Amount			Amount
Ordinary income:				4,756			5,298			542			11.4	%
Underwriting income:				4,708			5,223			514			10.9
Net premiums written				4,703			5,124			421			9.0
Interest and dividend income on deposits of premiums, etc.				5			4			(0	)		(15.9	)
Reversal of underwriting reserves				—			93			93			—
Investment income:				47			75			28			60.2
Interest and dividend income				52			49			(2	)		(5.4	)
Gains on sales of securities				—			30			30			—
Transfer of interest and dividend income on deposits of premiums, etc.				(5	)		(4	)		0			—
Other ordinary income				0			0			(0	)		(6.3	)
Ordinary expenses:				4,813			5,327			514			10.7
Underwriting expenses:				3,384			4,021			636			18.8
Net claims paid				2,525			3,065			539			21.4
Loss adjustment expenses				300			315			14			4.7
Net commissions and brokerage fees				308			328			19			6.4
Provision for reserve for outstanding losses and claims				51			312			260			506.4
Provision for underwriting reserves				197			—			(197	)		(100.0	)
Operating, general and administrative expenses				1,429			1,306			(122	)		(8.6	)
Other ordinary expenses:				0			0			(0	)		(94.4	)
Ordinary loss				(57	)		(28	)		28			—
Extraordinary losses:				5			2			(3	)		(59.2	)
Losses on disposal of fixed assets				0			0			(0	)		(16.2	)
Provision for reserves under the special laws:				1			1			0			0.5
Provision for reserve for price fluctuation				1			1			0			0.5
Other extraordinary losses				2			—			(2	)		(100.0	)
Loss before income taxes				(62	)		(30	)		31			—
Income taxes				1			1			—			—
Total income taxes				1			1			—			—
Net loss				(64	)		(32	)		31			—
Underwriting result:
Net premiums written	(+	)		4,703			5,124			421			9.0
Net claims paid	(–	)		2,525			3,065			539			21.4
Loss adjustment expenses	(–	)		300			315			14			4.7
Operating expenses:	(–	)		1,737			1,633			(104	)		(6.0	)
Net commissions and brokerage fees				308			328			19			6.4
Operating, general and administrative expenses related to underwriting				1,429			1,305			(123	)		(8.7	)
Underwriting result				139			111			(27	)		(20.1	)
Underwriting profit				(104	)		(103	)		1			—
Ratios:
Net loss ratio	(%	)		60.1			66.0			5.9
Net expense ratio	(%	)		36.9			31.9			(5.0	)
Underwriting result ratio	(%	)		3.0			2.2			(0.8	)

25

SONPO 24 Insurance Co., Ltd. (Non-consolidated)

Premiums Written and Claims Paid by Lines of Business

Direct premiums written (excluding deposits of premiums by policyholders)

	(Millions of yen)
	Six months ended September 30, 2009 (April 1 to September 30, 2009)								Six months ended September 30, 2010 (April 1 to September 30, 2010)
Business line	Amount		% of total amount			Rate of change			Amount		% of total amount			Rate of change
Fire and allied insurance		—		—	%		—	%		—		—	%		—	%
Marine insurance		—		—			—			—		—			—
Personal accident insurance		—		—			—			—		—			—
Voluntary automobile insurance		4,663		100.0			19.5			5,081		100.0			9.0
Compulsory automobile liability insurance		—		—			—			—		—			—
Others		—		—			—			—		—			—
Total		4,663		100.0			19.5			5,081		100.0			9.0
Deposits of premiums by policyholders		—		—			—			—		—			—

Net premiums written

	(Millions of yen)
	Six months ended September 30, 2009 (April 1 to September 30, 2009)								Six months ended September 30, 2010 (April 1 to September 30, 2010)
Business line	Amount		% of total amount			Rate of change			Amount		% of total amount			Rate of change
Fire and allied insurance		—		—	%		—	%		—		—	%		—	%
Marine insurance		—		—			—			—		—			—
Personal accident insurance		—		—			—			—		—			—
Voluntary automobile insurance		4,623		98.3			19.7			5,037		98.3			9.0
Compulsory automobile liability insurance		79		1.7			(11.9	)		87		1.7			9.8
Others		—		—			—			—		—			—
Total		4,703		100.0			19.0			5,124		100.0			9.0

Net claims paid

	(Millions of yen)
	Six months ended September 30, 2009 (April 1 to September 30, 2009)								Six months ended September 30, 2010 (April 1 to September 30, 2010)
Business line	Amount		Rate of change			Net loss ratio			Amount		Rate of change			Net loss ratio
Fire and allied insurance		—		—	%		—	%		—		—	%		—	%
Marine insurance		—		—			—			—		—			—
Personal accident insurance		—		—			—			—		—			—
Voluntary automobile insurance		2,436		3.9			59.2			2,964		21.7			65.1
Compulsory automobile liability insurance		89		5.7			112.1			100		13.0			115.4
Others		—		—			—			—		—			—
Total		2,525		4.0			60.1			3,065		21.4			66.0

26

SONPO 24 Insurance Co., Ltd. (Non-consolidated)

Solvency Margin Ratio

	(Millions of yen)
	As of September 30, 2010			As of March 31, 2010
(A) Total Solvency Margin		8,605			8,616
Capital and funds, etc.		8,204			8,236
Reserve for price fluctuation		21			20
Contingency reserve		—			—
Catastrophic loss reserve		161			312
General allowance for possible loan losses		—			—
Unrealized gains on securities (before tax effect deductions)		217			46
Net unrealized gains and losses on real estate		—			—
Excess amount of reserve for maturity refunds		—			—
Subordinated debt, etc.		—			—
Deductions		—			—
Others		—			—
(B) Total Risks		928			895
Underwriting risk (R1)		775			734
Underwriting risk for third-sector insurance products including accident, sickness and nursing-care insurance (R2)		—			—
Guaranteed interest rate risk (R3)		—			—
Investment risk (R4)		157			193
Business management risk (R5)		31			30
Major catastrophe risk (R6)		105			104
(C) Solvency Margin Ratio [(A) / {(B) × 1/2}] × 100		1,854.2	%		1,924.8	%

Note) The above figures are calculated based on Articles 86 and 87 of the Ordinance for Enforcement of the Insurance Business Law and the provisions of Notification No. 50 of the Ministry of Finance (1996).

27

Saison Automobile and Fire Insurance Company, Limited (Non-consolidated)

Interim Balance Sheets

	(Millions of yen)
	As of September 30, 2010			As of March 31, 2010			Increase (Decrease)
	Amount			Amount
Assets:
Cash and deposits		6,080			10,796			(4,716	)
Money trusts		1,288			1,316			(27	)
Securities		22,828			19,223			3,605
Loans		16			20			(4	)
Tangible fixed assets		461			171			290
Intangible fixed assets		1,465			897			567
Other assets		2,154			1,917			237
Allowance for possible loan losses		(0	)		(0	)		—
Total assets		34,295			34,342			(47	)
Liabilities:
Underwriting funds:		20,081			19,359			721
Reserve for outstanding losses and claims		5,116			4,946			169
Underwriting reserves		14,965			14,413			551
Other liabilities		1,649			1,431			218
Reserve for retirement benefits		267			364			(96	)
Reserve for retirement benefits to directors		38			34			3
Reserve for bonus payments		218			206			12
Reserves under the special laws:		4			14			(10	)
Reserve for price fluctuation		4			14			(10	)
Deferred tax liabilities		104			100			4
Total liabilities		22,363			21,510			853
Net assets:
Shareholders’ equity:
Common stock		8,610			8,610			—
Capital surplus		6,848			6,848			—
Retained earnings		(3,783	)		(2,925	)		(858	)
Total shareholders’ equity		11,674			12,532			(858	)
Valuation and translation adjustments:
Unrealized gains on securities available for sale, net of tax		256			299			(42	)
Total valuation and translation adjustments		256			299			(42	)
Total net assets		11,931			12,831			(900	)
Total liabilities and net assets		34,295			34,342			(47	)

28

Saison Automobile and Fire Insurance Company, Limited (Non-consolidated)

Interim Statements of Income

		(Millions of yen)
		Six months ended September 30, 2009 (April 1 to September 30, 2009)			Six months ended September 30, 2010 (April 1 to September 30, 2010)			Increase (Decrease)			Rate of change
		Amount			Amount
Ordinary income:			8,081			8,124			42			0.5	%
Underwriting income:			7,759			7,834			74			1.0
Net premiums written			6,969			7,483			514			7.4
Deposits of premiums by policyholders			380			324			(56	)		(14.8	)
Interest and dividend income on deposits of premiums, etc.			31			25			(5	)		(18.1	)
Reversal of reserve for outstanding losses and claims			377			—			(377	)		(100.0	)
Investment income:			214			184			(30	)		(14.3	)
Interest and dividend income			161			155			(5	)		(3.7	)
Investment gains on money trusts			48			—			(48	)		(100.0	)
Investment gains on trading securities			3			0			(3	)		(78.9	)
Gains on sales of securities			32			52			20			64.0
Transfer of interest and dividend income on deposits of premiums, etc.			(31	)		(25	)		5			—
Other ordinary income			107			106			(1	)		(1.3	)
Ordinary expenses:			7,911			8,980			1,068			13.5
Underwriting expenses:			5,636			6,404			767			13.6
Net claims paid			3,729			3,784			54			1.5
Loss adjustment expenses			366			479			112			30.8
Net commissions and brokerage fees			887			896			8			1.0
Maturity refunds to policyholders			463			519			55			12.0
Provision for reserve for outstanding losses and claims			—			169			169			—
Provision for underwriting reserves			184			551			367			199.9
Investment expenses:			98			98			(0	)		(0.9	)
Investment losses on money trusts			—			27			27			—
Losses on sales of securities			76			—			(76	)		(100.0	)
Operating, general and administrative expenses			2,069			2,472			402			19.5
Other ordinary expenses:			106			5			(101	)		(95.2	)
Interest paid			2			2			0			21.6
Ordinary profit (loss)			169			(855	)		(1,025	)		(604.9	)
Extraordinary gains:			4			10			6			159.2
Reversal of reserves under the special laws:			4			10			6			159.2
Reversal of reserve for price fluctuation			4			10			6			159.2
Extraordinary losses:			0			2			1			200.5
Losses on disposal of fixed assets			0			2			1			691.4
Impairment losses			0			—			(0	)		(100.0	)
Income (loss) before income taxes			172			(847	)		(1,020	)		(590.4	)
Income taxes			10			10			—			—
Total income taxes			10			10			—			—
Net income (loss)			162			(858	)		(1,020	)		(629.5	)
Underwriting result:
Net premiums written	(+)		6,969			7,483			514			7.4
Net claims paid	(–)		3,729			3,784			54			1.5
Loss adjustment expenses	(–)		366			479			112			30.8
Operating expenses:	(–)		2,807			3,225			418			14.9
Net commissions and brokerage fees			887			896			8			1.0
Operating, general and administrative expenses related to underwriting			1,919			2,328			409			21.3
Underwriting result			65			(5	)		(71	)		(108.3	)
Underwriting profit			247			(859	)		(1,107	)		(446.6	)
Ratios:
Net loss ratio (%)			58.8			57.0			(1.8	)
Net expense ratio (%)			40.3			43.1			2.8
Underwriting result ratio (%)			0.9			(0.1	)		(1.0	)

29

Saison Automobile and Fire Insurance Company, Limited (Non-consolidated)

Premiums Written and Claims Paid by Lines of Business

Direct premiums written (excluding deposits of premiums by policyholders)

	(Millions of yen)
	Six months ended September 30, 2009 (April 1 to September  30, 2009)								Six months ended September 30, 2010 (April 1 to September  30, 2010)
Business line	Amount		% of total amount			Rate of change			Amount		% of total amount			Rate of change
Fire and allied insurance		1,059		13.5	%		79.7	%		1,699		19.7	%		60.4	%
Marine insurance		0		0.0			6.2			0		0.0			46.0
Personal accident insurance		1,866		23.7			25.4			2,143		24.8			14.9
Voluntary automobile insurance		4,374		55.6			(4.7	)		4,191		48.5			(4.2	)
Compulsory automobile liability insurance		166		2.1			(20.8	)		160		1.9			(4.1	)
Others		393		5.0			(11.1	)		438		5.1			11.3
Total		7,861		100.0			7.4			8,634		100.0			9.8
Deposits of premiums by policyholders		380		—			(3.6	)		324		—			(14.8	)

Net premiums written

	(Millions of yen)
	Six months ended September 30, 2009 (April 1 to September 30, 2009)								Six months ended September 30, 2010 (April 1 to September  30, 2010)
Business line	Amount		% of total amount			Rate of change			Amount		% of total amount			Rate of change
Fire and allied insurance		771		11.1	%		79.3	%		1,275		17.0	%		65.3	%
Marine insurance		13		0.2			(39.9	)		9		0.1			(31.3	)
Personal accident insurance		1,252		18.0			11.0			1,379		18.4			10.1
Voluntary automobile insurance		4,343		62.3			(4.7	)		4,161		55.6			(4.2	)
Compulsory automobile liability insurance		208		3.0			(15.1	)		235		3.2			12.9
Others		379		5.4			(11.8	)		422		5.6			11.3
Total		6,969		100.0			2.3			7,483		100.0			7.4

Net claims paid

	(Millions of yen)
	Six months ended September 30, 2009 (April 1 to September  30, 2009)								Six months ended September 30, 2010 (April 1 to September  30, 2010)
Business line	Amount		Rate of change			Net loss ratio			Amount		Rate of change			Net loss ratio
Fire and allied insurance		74		(48.2	)%		10.5	%		143		92.5	%		12.4	%
Marine insurance		10		(2.9	)		78.5			10		(4.4	)		108.0
Personal accident insurance		716		22.2			62.2			790		10.3			64.7
Voluntary automobile insurance		2,659		4.0			67.5			2,574		(3.2	)		69.9
Compulsory automobile liability insurance		195		(5.6	)		101.5			205		5.0			93.7
Others		72		(17.1	)		21.6			60		(17.5	)		17.9
Total		3,729		3.8			58.8			3,784		1.5			57.0

30

Saison Automobile and Fire Insurance Company, Limited (Non-consolidated)

Solvency Margin Ratio

	(Millions of yen)
	As of September 30, 2010			As of March 31, 2010
(A) Total Solvency Margin		13,609			15,333
Capital and funds, etc.		10,231			11,658
Reserve for price fluctuation		4			14
Contingency reserve		8			8
Catastrophic loss reserve		3,037			3,291
General allowance for possible loan losses		0			0
Unrealized gains on securities (before tax effect deductions)		325			359
Net unrealized gains and losses on real estate		—			—
Excess amount of reserve for maturity refunds		—			—
Subordinated debt, etc.		—			—
Deductions		—			—
Others		2			2
(B) Total Risks		1,661			1,653
Underwriting risk (R1)		841			838
Underwriting risk for third-sector insurance products including accident, sickness and nursing-care insurance (R2)		—			—
Guaranteed interest rate risk (R3)		6			6
Investment risk (R4)		516			530
Business management risk (R5)		59			59
Major catastrophe risk (R6)		611			598
(C) Solvency Margin Ratio [ (A) / {(B) × 1/2} ] × 100		1,638.3	%		1,854.7	%

Note) The above figures are calculated based on Articles 86 and 87 of the Ordinance for Enforcement of the Insurance Business Law and the provisions of Notification No. 50 of the Ministry of Finance (1996).

31

Sompo Japan Himawari Life Insurance Co., Ltd. (Non-consolidated)

Interim Balance Sheets

	(Millions of yen)
	As of September 30, 2010			As of March 31, 2010			Increase (Decrease)
	Amount			Amount
Assets:
Cash and deposits		36,646			32,988			3,657
Securities:		1,057,808			1,030,306			27,502
Government bonds		609,410			560,887			48,522
Municipal bonds		69,924			70,489			(564	)
Corporate bonds		310,542			310,212			329
Domestic stocks		4,679			5,140			(460	)
Foreign securities		63,251			83,576			(20,324	)
Loans:		17,601			17,162			438
Policy loans		17,601			17,162			438
Tangible fixed assets		1,224			1,197			26
Intangible fixed assets		4,620			4,625			(5	)
Agency accounts receivable		142			174			(31	)
Reinsurance accounts receivable		969			1,206			(237	)
Other assets		19,515			21,401			(1,886	)
Deferred tax assets		12,267			13,164			(897	)
Allowance for possible loan losses		(35	)		(94	)		59
Total assets		1,150,759			1,122,133			28,626
Liabilities:
Policy reserves:		1,083,639			1,054,852			28,786
Reserve for outstanding claims		20,591			20,155			435
Policy reserves		1,061,058			1,032,371			28,687
Reserve for dividends to policyholders		1,989			2,325			(336	)
Agency accounts payable		1,428			1,591			(163	)
Reinsurance accounts payable		1,155			1,205			(49	)
Other liabilities		5,817			7,564			(1,746	)
Reserve for retirement benefits		804			663			141
Reserve for retirement benefits to directors		61			45			15
Reserves under the special laws:		904			794			110
Reserve for price fluctuation		904			794			110
Total liabilities		1,093,810			1,066,716			27,093
Net assets:
Shareholders’ equity:
Common stock		17,250			17,250			—
Capital surplus		10,000			10,000			—
Retained earnings		25,983			27,283			(1,300	)
Total shareholders’ equity		53,233			54,533			(1,300	)
Valuation and translation adjustments:
Unrealized gains on securities available for sale, net of tax		3,716			882			2,833
Total valuation and translation adjustments		3,716			882			2,833
Total net assets		56,949			55,416			1,532
Total liabilities and net assets		1,150,759			1,122,133			28,626

32

Sompo Japan Himawari Life Insurance Co., Ltd. (Non-consolidated)

Interim Statements of Income

		(Millions of yen)
		Six months ended September 30, 2009 (April 1 to September 30, 2009)			Six months ended September 30, 2010 (April 1 to September 30, 2010)			Increase (Decrease)			Rate of change
		Amount			Amount
Ordinary income:			125,424			129,656			4,232			3.4	%
Insurance premiums and other:			114,050			119,876			5,825			5.1
Insurance premiums			112,610			118,347			5,737			5.1
Investment income:	��		11,356			9,711			(1,644	)		(14.5	)
Interest and dividend income			8,955			9,413			457			5.1
Gains on sales of securities			895			297			(597	)		(66.7	)
Investment gains on special account			1,505			—			(1,505	)		(100.0	)
Other ordinary income			18			69			51			281.3
Ordinary expenses:			123,768			130,186			6,417			5.2
Insurance claims and other:			77,273			69,805			(7,468	)		(9.7	)
Insurance claims			11,002			11,225			222			2.0
Annuity payments			421			512			91			21.7
Insurance benefits			10,202			11,124			921			9.0
Surrender benefits			52,495			44,154			(8,340	)		(15.9	)
Other refunds			676			482			(194	)		(28.7	)
Provision for policy reserves and other:			17,318			29,122			11,804			68.2
Provision for reserve for outstanding claims			1,692			435			(1,257	)		(74.3	)
Provision for policy reserves			15,625			28,687			13,061			83.6
Provision for interest portion of reserve for dividends to policyholders			0			0			0			72.7
Investment expenses:			944			1,088			144			15.3
Interest paid			16			28			11			71.4
Losses on sales of securities			—			83			83			—
Impairment losses on securities			716			—			(716	)		(100.0	)
Losses on derivatives			173			26			(147	)		(84.9	)
Investment losses on special account			—			935			935			—
Operating, general and administrative expenses			27,418			28,901			1,482			5.4
Other ordinary expenses			813			1,267			454			55.9
Ordinary profit (loss)			1,655			(529	)		(2,185	)		(132.0	)
Extraordinary gains:			2			5			3			127.4
Other extraordinary gains			2			5			3			127.4
Extraordinary losses:			91			390			299			328.0
Losses on disposal of fixed assets			5			15			9			156.3
Provision for reserves under the special laws:			85			110			24			29.2
Provision for reserve for price fluctuation			85			110			24			29.2
Other extraordinary losses			—			264			264			—
Provision for reserve for dividends to policyholders			660			799			139			21.1
Income (loss) before income taxes			907			(1,713	)		(2,621	)		(289.0	)
Income taxes			1,414			297			(1,117	)		(79.0	)
Deferred income taxes			(949	)		(710	)		238			—
Total income taxes			465			(413	)		(878	)		(188.8	)
Net income (loss)			441			(1,300	)		(1,742	)		(394.5	)

33

Sompo Japan Himawari Life Insurance Co., Ltd. (Non-consolidated)

Major Business Results

Total amount of policies in force and total amount of new policies

Total amount of policies in force

	(Number in thousands, Yen in hundred millions, %)
	As of September 30, 2010								As of March 31, 2010
	Number				Amount				Number				Amount
			Rate of change				Rate of change				Rate of change				Rate of change
Individual insurance		1,819		105.0		109,680		105.4		1,732		109.9		104,049		110.1
Individual annuities		15		99.6		798		99.5		15		98.2		801		98.5
Group insurance		—		—		18,580		101.1		—		—		18,379		92.0
Group annuities		—		—		—		—		—		—		—		—

Note) Amount of “Individual annuities” represents the sum of annuity fund at the beginning of annuity payment of contracts before the beginning of annuity payment and policy reserves for the contracts after the beginning of annuity payment.

Total amount of new policies

	(Number in thousands, Yen in hundred millions, %)
	Six months ended September 30, 2009 (April 1 to September 30, 2009)								Six months ended September 30, 2010 (April 1 to September 30, 2010)
	Number				Amount				Number				Amount
			Rate of change				Rate of change				Rate of change				Rate of change
Individual insurance		159		169.4		10,519		135.4		159		100.1		11,268		107.1
Individual annuities		0		105.9		9		97.2		0		117.3		10		108.7
Group insurance		—		—		331		634.0		—		—		93		28.2
Group annuities		—		—		—		—		—		—		—		—

Note) Amount of “Individual annuities” represents the amount of annuity fund at the beginning of annuity payment.

Annualized premiums

Policies in force

	(Millions of yen, %)
	As of September 30, 2010				As of March 31, 2010
			Rate of change				Rate of change
Individual insurance		193,896		100.6		192,742		98.1
Individual annuities		3,519		102.3		3,439		98.9
Total		197,416		100.6		196,181		98.2
Medical and survival benefits		75,345		103.4		72,864		106.1

New policies

	(Millions of yen, %)
	Six months ended September 30, 2009 (April 1 to September  30, 2009)				Six months ended September 30, 2010 (April 1 to September  30, 2010)
			Rate of change				Rate of change
Individual insurance		12,260		123.6		12,606		102.8
Individual annuities		39		93.4		43		109.7
Total		12,299		123.4		12,650		102.9
Medical and survival benefits		6,076		161.6		5,691		93.7

Notes)

1. Annualized premiums are calculated by using multipliers for various premium payment terms to the premium per payment. In single premium contracts, the amount is calculated by dividing the premium by the duration of the policy.

2. Annualized premiums for medical and survival benefits include (a) premium related to medical benefits such as hospitalization and surgery benefits, (b) premium related to survival benefits such as specific illness and nursing benefits, and (c) premium related to premium waiver benefits, in which disability cause is excluded but causes such as specific illness and nursing care are included.

34

Sompo Japan Himawari Life Insurance Co., Ltd. (Non-consolidated)

Solvency Margin Ratio

	(Millions of yen)
	As of September 30, 2010			As of March 31, 2010
(A) Total Solvency Margin		162,496			157,431
Capital, etc.		53,239			54,533
Reserve for price fluctuation		904			794
Contingency reserve		15,931			15,355
General allowance for possible loan losses		13			18
Unrealized gains on securities (90% of gain or 100% of loss)		5,242			1,245
Net unrealized gains and losses on real estate (85% of gain or 100% of loss)		—			—
Policy reserves in excess of surrender values		71,588			69,171
Brought in capital, etc.		—			—
Subordinated debt, etc.		—			—
Deductions		—			—
Others		15,576			16,312
(B) Total Risks		13,395			12,915
Underwriting risk (R1)		6,743			6,382
Underwriting risk for third-sector insurance products including accident, sickness and nursing-care insurance (R8)		3,712			3,516
Guaranteed interest rate risk (R2)		3,200			3,188
Investment risk (R3)		4,243			4,223
Business management risk (R4)		364			352
Guaranteed minimum benefit risk (R7)		332			322
(C) Solvency Margin Ratio [(A) / {(1/2) × (B)}] × 100		2,426.1	%		2,437.9	%

Notes)

1. The above figures are calculated based on Articles 86, 87, 161, 162 and 190 of the Ordinance for Enforcement of the Insurance Business Law and the provisions of Notification No. 50 of the Ministry of Finance (1996). “Policy reserves in excess of surrender values” is calculated based on the provisions of Article 1 Paragraph 3-1 of Notification No. 50 of the Ministry of Finance.

2. Guaranteed minimum benefit risk is calculated by the standard method.

35

NIPPONKOA Life Insurance Co., Ltd. (Non-consolidated)

Interim Balance Sheets

	(Millions of yen)
	As of September 30, 2010			As of March 31, 2010			Increase (Decrease)
	Amount			Amount
Assets:
Cash and deposits		19,310			14,371			4,938
Call loans		697			478			219
Receivables under securities borrowing transactions		27,146			25,382			1,763
Money trusts		20,365			19,916			448
Securities:		396,442			378,612			17,829
Government bonds		260,952			243,074			17,877
Municipal bonds		52,308			52,132			175
Corporate bonds		76,133			75,571			561
Domestic stocks		6,084			6,892			(807	)
Foreign securities		964			941			23
Loans:		14,419			13,763			655
Policy loans		14,419			13,763			655
Tangible fixed assets		187			178			9
Intangible fixed assets		970			240			730
Agency accounts receivable		21			24			(2	)
Reinsurance accounts receivable		230			183			47
Other assets		8,549			8,911			(362	)
Deferred tax assets		6,290			6,931			(641	)
Allowance for possible loan losses		(7	)		(7	)		0
Total assets		494,625			468,988			25,636
Liabilities:
Policy reserves:		435,044			411,682			23,361
Reserve for outstanding claims		2,751			2,998			(247	)
Policy reserves		430,861			407,193			23,668
Reserve for dividends to policyholders		1,431			1,491			(59	)
Agency accounts payable		789			804			(15	)
Reinsurance accounts payable		123			113			9
Other liabilities		30,172			30,000			172
Reserve for retirement benefits		343			300			42
Reserve for bonus payments to directors		—			15			(15	)
Reserves under the special laws:		584			542			42
Reserve for price fluctuation		584			542			42
Total liabilities		467,056			443,459			23,596
Net assets:
Shareholders’ equity:
Common stock		20,000			20,000			—
Retained earnings		1,505			1,564			(59	)
Total shareholders’ equity		21,505			21,564			(59	)
Valuation and translation adjustments:
Unrealized gains on securities available for sale, net of tax		6,063			3,964			2,098
Total valuation and translation adjustments		6,063			3,964			2,098
Total net assets		27,568			25,528			2,039
Total liabilities and net assets		494,625			468,988			25,636

36

NIPPONKOA Life Insurance Co., Ltd. (Non-consolidated)

Interim Statements of Income

	(Millions of yen)
	Six months  ended September 30, 2009 (April 1 to September 30, 2009)			Six months ended September 30, 2010 (April 1 to September 30, 2010)			Increase (Decrease)			Rate of change
	Amount			Amount
Ordinary income:		49,162			53,689			4,527			9.2	%
Insurance premiums and other:		44,315			48,443			4,127			9.3
Insurance premiums		44,230			48,033			3,803			8.6
Investment income:		4,344			4,632			288			6.6
Interest and dividend income		3,890			4,402			511			13.2
Investment gains on money trusts		380			230			(149	)		(39.4	)
Gains on sales of securities		73			—			(73	)		(100.0	)
Other ordinary income:		502			613			111			22.1
Reversal of reserve for outstanding claims		—			247			247			—
Ordinary expenses:		48,282			53,101			4,819			10.0
Insurance claims and other:		18,998			19,797			799			4.2
Insurance claims		4,317			5,398			1,080			25.0
Annuity payments		196			241			44			22.7
Insurance benefits		1,457			1,806			349			24.0
Surrender benefits		12,657			11,957			(700	)		(5.5	)
Other refunds		112			118			6			5.4
Provision for policy reserves and other:		20,168			23,668			3,499			17.4
Provision for reserve for outstanding claims		95			—			(95	)		(100.0	)
Provision for policy reserves		20,072			23,668			3,595			17.9
Provision for interest portion of reserve for dividends to policyholders		0			0			0			26.2
Investment expenses:		38			21			(17	)		(44.8	)
Interest paid		35			18			(17	)		(47.3	)
Operating, general and administrative expenses		8,582			9,147			565			6.6
Other ordinary expenses		493			465			(28	)		(5.7	)
Ordinary profit		880			587			(292	)		(33.2	)
Extraordinary gains:		—			0			0			—
Reversal of allowance for possible loan losses		—			0			0			—
Extraordinary losses:		47			102			55			116.6
Losses on disposal of fixed assets		8			0			(7	)		(92.8	)
Provision for reserves under the special laws:		39			42			2			7.0
Provision for reserve for price fluctuation		39			42			2			7.0
Other extraordinary losses		—			60			60			—
Provision for reserve for dividends to policyholders		515			537			22			4.3
Income (loss) before income taxes		317			(51	)		(369	)		(116.4	)
Income taxes		351			555			204			58.1
Deferred income taxes		(219	)		(548	)		(328	)		—
Total income taxes		131			7			(124	)		(94.6	)
Net income (loss)		185			(59	)		(244	)		(131.8	)

37

NIPPONKOA Life Insurance Co., Ltd. (Non-consolidated)

Major Business Results

Total amount of policies in force and total amount of new policies

Total amount of policies in force

	(Number in thousands, Yen in hundred millions, %)
	As of September 30, 2010								As of March 31, 2010
	Number				Amount				Number				Amount
			Rate of change				Rate of change				Rate of change				Rate of change
Individual insurance		585		105.4		41,423		103.4		555		111.1		40,044		105.1
Individual annuities		53		99.8		1,973		100.1		53		96.3		1,971		96.3
Group insurance		—		—		11,272		102.0		—		—		11,052		109.9
Group annuities		—		—		—		—		—		—		—		—

Note) Amount of “Individual annuities” represents the sum of annuity fund at the beginning of annuity payment of contracts before the beginning of annuity payment and policy reserves for the contracts after the beginning of annuity payment.

Total amount of new policies

	(Number in thousands, Yen in hundred millions, %)
	Six months ended September 30, 2009 (April 1 to September 30, 2009)								Six months ended September 30, 2010 (April 1 to September 30, 2010)
	Number				Amount				Number				Amount
			Rate of change				Rate of change				Rate of change				Rate of change
Individual insurance		46		120.9		3,149		108.0		51		110.4		3,810		121.0
Individual annuities		0		92.8		27		86.9		1		210.5		55		201.2
Group insurance		—		—		240		165.2		—		—		63		26.2
Group annuities		—		—		—		—		—		—		—		—

Note) Amount of “Individual annuities” represents the amount of annuity fund at the beginning of annuity payment.

Annualized premiums

Policies in force

	(Millions of yen, %)
	As of September 30, 2010				As of March 31, 2010
			Rate of change				Rate of change
Individual insurance		59,761		103.5		57,758		105.3
Individual annuities		11,974		100.1		11,966		96.5
Total		71,736		102.9		69,725		103.6
Medical and survival benefits		14,215		104.4		13,610		111.6

New policies

	(Millions of yen, %)
	Six months ended September 30, 2009 (April 1 to September 30, 2009)				Six months ended September 30, 2010 (April 1 to September 30, 2010)
			Rate of change				Rate of change
Individual insurance		4,300		103.0		4,952		115.2
Individual annuities		164		96.0		303		185.0
Total		4,464		102.7		5,255		117.7
Medical and survival benefits		1,214		110.0		1,171		96.4

Notes)

1. Annualized premiums are calculated by using multipliers for various premium payment terms to the premium per payment. In single premium contracts, the amount is calculated by dividing the premium by the duration of the policy.

2. Annualized premiums for medical and survival benefits include (a) premium related to medical benefits such as hospitalization and surgery benefits and (b) premium related to survival benefits such as specific illness.

38

NIPPONKOA Life Insurance Co., Ltd. (Non-consolidated)

Solvency Margin Ratio

	(Millions of yen)
	As of September 30, 2010			As of March 31, 2010
(A) Total Solvency Margin		63,354			60,078
Capital, etc.		20,943			21,564
Reserve for price fluctuation		584			542
Contingency reserve		5,078			4,859
General allowance for possible loan losses		—			—
Unrealized gains on securities (90% of gain or 100% of loss)		8,552			5,592
Net unrealized gains and losses on real estate (85% of gain or 100% of loss)		—			—
Policy reserves in excess of surrender values		26,710			25,993
Brought in capital, etc.		—			—
Subordinated debt, etc.		—			—
Deductions		—			—
Others		1,485			1,527
(B) Total Risks		4,560			4,368
Underwriting risk (R1)		3,020			2,930
Underwriting risk for third-sector insurance products including accident and sickness insurance (R8)		1,042			970
Guaranteed interest rate risk (R2)		169			164
Investment risk (R3)		1,629			1,538
Business management risk (R4)		117			112
Guaranteed minimum benefit risk (R7)		—			—
(C) Solvency Margin Ratio [(A) / {(1/2) x (B)}] x 100		2,778.6	%		2,750.4	%

Note) The above figures are calculated based on Articles 86, 87, 161, 162 and 190 of the Ordinance for Enforcement of the Insurance Business Law and the provisions of Notification No. 50 of the Ministry of Finance (1996). “Policy reserves in excess of surrender values” is calculated based on the provisions of Article 1 Paragraph 3-1 of Notification No. 50 of the Ministry of Finance.

39

Sompo Japan DIY Life Insurance Co., Ltd. (Non-consolidated)

Interim Balance Sheets

	(Millions of yen)
	As of September 30, 2010			As of March 31, 2010			Increase (Decrease)
	Amount			Amount
Assets:
Cash and deposits		216			182			33
Securities:		5,033			5,407			(373	)
Government bonds		2,396			2,690			(293	)
Domestic stocks		866			950			(84	)
Tangible fixed assets		68			80			(12	)
Intangible fixed assets		—			0			(0	)
Agency accounts receivable		0			0			0
Reinsurance accounts receivable		28			21			6
Other assets		862			456			406
Allowance for possible loan losses	��	—			(0	)		0
Total assets		6,209			6,149			59
Liabilities:
Policy reserves:		1,095			1,041			54
Reserve for outstanding claims		194			141			53
Policy reserves		900			899			0
Agency accounts payable		3			3			0
Reinsurance accounts payable		33			32			1
Other liabilities		350			342			8
Reserve for retirement benefits		22			20			2
Reserves under the special laws:		16			15			0
Reserve for price fluctuation		16			15			0
Deferred tax liabilities		195			225			(30	)
Total liabilities		1,717			1,680			37
Net assets:
Shareholders’ equity:
Common stock		10,100			10,100			—
Capital surplus		2,100			2,100			—
Retained earnings		(8,052	)		(8,128	)		75
Total shareholders’ equity		4,147			4,071			75
Valuation and translation adjustments:
Unrealized gains on securities available for sale, net of tax		344			397			(53	)
Total valuation and translation adjustments		344			397			(53	)
Total net assets		4,491			4,468			22
Total liabilities and net assets		6,209			6,149			59

40

Sompo Japan DIY Life Insurance Co., Ltd. (Non-consolidated)

Interim Statements of Income

	(Millions of yen)
	Six months ended September 30, 2009 (April 1 to September 30, 2009)			Six months ended September 30, 2010 (April 1 to September 30, 2010)		Increase (Decrease)			Rate of change
	Amount			Amount
Ordinary income:		1,835			1,928		93			5.1	%
Insurance premiums and other:		1,812			1,912		100			5.6
Insurance premiums		1,773			1,824		50			2.9
Investment income:		23			15		(7	)		(33.0	)
Interest and dividend income		23			15		(7	)		(33.0	)
Other ordinary income		0			0		(0	)		(44.3	)
			��
Ordinary expenses:		2,130			1,850		(280	)		(13.2	)
Insurance claims and other:		590			488		(101	)		(17.2	)
Insurance claims		405			307		(98	)		(24.3	)
Insurance benefits		100			102		2			2.3
Other refunds		0			2		1			290.4
Provision for policy reserves and other:		110			54		(55	)		(50.5	)
Provision for reserve for outstanding claims		98			53		(44	)		(45.2	)
Provision for policy reserves		11			0		(11	)		(94.7	)
Investment expenses:		0			0		(0	)		(27.3	)
Interest paid		0			0		(0	)		(27.3	)
Operating, general and administrative expenses		1,394			1,279		(115	)		(8.3	)
Other ordinary expenses		34			27		(7	)		(20.2	)
Ordinary profit (loss)		(294	)		78		373			—
Extraordinary losses:		8			0		(8	)		(92.4	)
Provision for reserves under the special laws:		0			0		(0	)		(10.6	)
Provision for reserve for price fluctuation		0			0		(0	)		(10.6	)
Other extraordinary losses		8			—		(8	)		(100.0	)
Income (loss) before income taxes		(303	)		77		381			—
Income taxes		1			1		—			—
Total income taxes		1			1		—			—
Net income (loss)		(305	)		75		381			—

41

Sompo Japan DIY Life Insurance Co., Ltd. (Non-consolidated)

Major Business Results

Total amount of policies in force and total amount of new policies

Total amount of policies in force

	(Number in thousands, Yen in hundred millions, %)
	As of September 30, 2010								As of March 31, 2010
	Number				Amount				Number				Amount
			Rate of change				Rate of change				Rate of change				Rate of change
Individual insurance		46		99.2		7,924		98.6		46		101.1		8,039		99.7
Individual annuities		—		—		—		—		—		—		—		—
Group insurance		—		—		—		—		—		—		—		—
Group annuities		—		—		—		—		—		—		—		—

Total amount of new policies

	(Number in thousands, Yen in hundred millions, %)
	Six months ended September 30, 2009 (April 1 to September  30, 2009)								Six months ended September 30, 2010 (April 1 to September 30, 2010)
	Number				Amount				Number				Amount
			Rate of change				Rate of change				Rate of change				Rate of change
Individual insurance		2		106.8		417		102.7		1		71.8		288		69.2
Individual annuities		—		—		—		—		—		—		—		—
Group insurance		—		—		—		—		—		—		—		—
Group annuities		—		—		—		—		—		—		—		—

Annualized premiums

Policies in force

	(Millions of yen, %)
	As of September 30, 2010				As of March 31, 2010
			Rate of change				Rate of change
Individual insurance		3,677		100.8		3,650		103.2
Individual annuities		—		—		—		—
Total		3,677		100.8		3,650		103.2
Medical and survival benefits		872		101.1		863		104.6

New policies

	(Millions of yen, %)
	Six months ended September 30, 2009 (April 1 to September 30, 2009)				Six months ended September 30, 2010 (April 1 to September 30, 2010)
			Rate of change				Rate of change
Individual insurance		170		107.5		125		73.6
Individual annuities		—		—		—		—
Total		170		107.5		125		73.6
Medical and survival benefits		52		115.3		36		69.8

Notes)

1. Annualized premiums are calculated by using multipliers for various premium payment terms to the premium per payment. In single premium contracts, the amount is calculated by dividing the premium by the duration of the policy.

2. Annualized premiums for medical and survival benefits include (a) premium related to medical benefits such as hospitalization and surgery benefits, (b) premium related to survival benefits such as specific illness and nursing benefits, and (c) premium related to premium waiver benefits, in which disability cause is excluded but causes such as specific illness and nursing care are included.

42

Sompo Japan DIY Life Insurance Co., Ltd. (Non-consolidated)

Solvency Margin Ratio

	(Millions of yen)
	As of September 30, 2010			As of March 31, 2010
(A) Total Solvency Margin		5,194			5,199
Capital, etc.		4,147			4,071
Reserve for price fluctuation		16			15
Contingency reserve		545			551
General allowance for possible loan losses		—			—
Unrealized gains on securities (90% of gain or 100% of loss)		485			560
Net unrealized gains and losses on real estate (85% of gain or 100% of loss)		—			—
Policy reserves in excess of surrender values		—			—
Brought in capital, etc.		—			—
Subordinated debt, etc.		—			—
Deductions		—			—
Others		—			—
(B) Total Risks		574			582
Underwriting risk (R1)		448			454
Underwriting risk for third-sector insurance products including accident, sickness and nursing-care insurance (R8)		95			95
Guaranteed interest rate risk (R2)		0			0
Investment risk (R3)		110			118
Business management risk (R4)		19			20
Guaranteed minimum benefit risk (R7)		—			—
(C) Solvency Margin Ratio [(A) / {(1/2) x (B)}] x 100		1,808.8	%		1,785.9	%

Note) The above figures are calculated based on Articles 86, 87, 161, 162 and 190 of the Ordinance for Enforcement of the Insurance Business Law and the provisions of Notification No. 50 of the Ministry of Finance (1996). “Policy reserves in excess of surrender values” is calculated based on the provisions of Article 1 Paragraph 3-1 of Notification No. 50 of the Ministry of Finance.

43

Supplementary Explanation

< Calculation of ratios >

•   Underwriting profit	=	Underwriting income – Underwriting expenses – Operating, general and administrative expenses related to underwriting + Other income and expenses*
	*	Other income and expenses include, but not limited to, income tax expenses for compulsory automobile liability insurance.

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

•   Net expense ratio = (Net commissions and brokerage fees + Operating, general and administrative expenses related to underwriting) / Net premiums written × 100

•   Underwriting result ratio = (Net premiums written – Net claims paid – Loss adjustment expenses – Operating expenses) / Net premiums written × 100

< Solvency margin ratio >

• In addition to reserves to cover payments for claims, benefits and maturity refunds, etc., it is necessary for insurance companies to maintain sufficient solvency in order to cover against risks which may exceed their normal estimates, i.e. the occurrence of major catastrophes, the fluctuation in mortality rate due to significant changes in key environmental factors and a big decline in value of assets held by insurance companies, etc.

• Solvency margin ratio: (C), which is calculated in accordance with the Insurance Business Law, is the ratio of “solvency margin of insurance companies by means of their capital, reserves, etc.” (total solvency margin: (A)) to “risks which will exceed their normal estimates” (total risks: (B)).

• “Risks which will exceed their normal estimates” are composed of risks described below.

<1> Underwriting risk, underwriting risk for third-sector insurance products including accident, sickness and nursing-care insurance:

Risks of occurrence of insurance claims in excess of normal estimates (excluding risks relating to major catastrophes)

<2> Guaranteed interest rate risk:

Risks of invested assets failing to yield assumed interest rates due to the aggravation of investment conditions than expected

<3> Investment risk:

Risks of retained securities and other assets fluctuating in prices in excess of normal estimates

<4> Business management risk:

Risks beyond normal estimates arising from business management (That does not fall under other categories.)

<5> Major catastrophe risk:

Risks of the occurrence of major catastrophic losses in excess of normal estimates (risks such as the Great Kanto Earthquake or Isewan typhoon)

<6> Guaranteed minimum benefit risk:

Risks of special account assets fluctuating in prices in excess of normal estimates

• “Solvency margin of insurance companies by means of their capital, reserves, etc.” (total solvency margin) is the sum of total net assets (excluding planned outflows), certain reserves (reserve for price fluctuation, contingency reserve and catastrophic loss reserve, etc.) and parts of net unrealized gains and losses on real estate, etc.

• Solvency margin ratio is one of the indicators for the regulatory authorities to monitor financial soundness of insurance companies. Solvency margin ratio exceeding 200% would indicate adequate capability to meet payments of possible insurance claims.

44

4. Supplementary Data about Financial Results for the six months ended September 30, 2010 at Press Conference

Sompo Japan Insurance Inc. (Non-consolidated)

(1) Key figures

	(Yen in hundred millions)
	Six months ended September 30, 2009 (A)			Year ended March 31, 2010 (B)			Six months ended September 30, 2010 (C)			Increase (Decrease) (C) - (B)			Increase (Decrease) (C) - (A)
 Net premiums written		6,416			12,588			6,436			—			20
Rate of change		(4.9	)%		(2.4	)%		0.3	%		2.8	%		5.2	%
‚ Total assets		50,086			50,292			48,572			(1,719	)		(1,513	)
ƒ Net loss ratio		74.7	%		73.9	%		69.3	%		(4.6	)%		(5.4	)%
„ Net expense ratio		34.2	%		34.1	%		33.3	%		(0.7	)%		(0.8	)%
… Combined ratio		108.8	%		107.9	%		102.6	%		(5.3	)%		(6.2	)%
Underwriting result ratio		(8.8	)%		(7.9	)%		(2.6	)%		5.3	%		6.2	%
† Voluntary automobile insurance
•    Net premiums written		3,226			6,402			3,197			—			(28	)
Rate of change		(2.1	)%		(2.1	)%		(0.9	)%		1.2	%		1.2	%
•    Underwriting result ratio		(2.2	)%		(4.8	)%		(2.7	)%		2.1	%		(0.4	)%
•    Net loss ratio		67.6	%		70.6	%		69.4	%		(1.2	)%		1.8	%
•    Net expense ratio		34.7	%		34.3	%		33.3	%		(0.9	)%		(1.4	)%
‡ Fire and allied insurance
•    Net premiums written		676			1,441			675			—			(1	)
Rate of change		(3.2	)%		(0.6	)%		(0.2	)%		0.4	%		3.0	%
•    Underwriting result ratio		12.4	%		13.0	%		12.2	%		(0.8	)%		(0.2	)%
•    Net loss ratio		44.5	%		44.2	%		43.3	%		(0.9	)%		(1.2	)%
•    Net expense ratio		43.1	%		42.8	%		44.5	%		1.7	%		1.4	%
ˆ Number of employees		17,481			17,294			19,027			1,733			1,546
‰ Number of agencies		47,336			46,294			45,533			(761	)		(1,803	)

<Reference> Consolidated figures of NKSJ Holdings, Inc.

	(Yen in hundred millions)
	Six months ended September 30, 2009 (A)	Year ended March 31, 2010 (B)	Six months ended September 30, 2010 (C)		Increase (Decrease) (C) - (B)		Increase (Decrease) (C) - (A)
 Ordinary income				13,297		—		—
‚ Net premiums written				9,878		—		—
Rate of change				—		—		—
ƒ Life insurance premiums written				1,089		—		—
Rate of change				—		—		—
„ Ordinary profit				388		—		—
… Net income				241		—		—

Notes)

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

2. Net expense ratio = (Net commissions and brokerage fees + Operating, general and administrative expenses related to underwriting) / Net premiums written × 100

3. Combined ratio = Net loss ratio + Net expense ratio

4. Underwriting result ratio = 100 - Combined ratio

5. Items with % within “Increase (Decrease)” represent change from the year ended March 31, 2010 and the six months ended September 30, 2009, respectively.

45

Sompo Japan Insurance Inc. (Non-consolidated)

(2) Other figures

 Non-performing loans

Risk-monitored loans

	(Yen in hundred millions)
	As of September 30, 2009			As of March 31, 2010			As of September 30, 2010
Loans to borrowers in bankruptcy		8			8			6
Overdue loans		22			20			16
Loans overdue for three months or more		—			—			—
Restructured loans		7			11			4
Total		38			40			27
Percent of total loans		0.8	%		0.9	%		0.6	%
(Reference) Total loans		4,823			4,761			4,681

Results of self-assessment

	(Yen in hundred millions)
	As of September 30, 2009		As of March 31, 2010		As of September 30, 2010
No category		47,938		48,472		46,457
Category II		587		616		486
Category III		99		97		93
Category IV		171		148		56
Subtotal (Category II-IV)		857		862		637
Total		48,796		49,334		47,094

Note)

The above figures represent amounts before recognition of impairment losses. Impairment losses on securities are included in “Category IV”.

‚ Impairment losses on securities

	(Yen in hundred millions)
	Six months ended September 30, 2009		Year ended March 31, 2010		Six months ended September 30, 2010
Domestic bonds		—		—		—
Domestic stocks		39		25		27
Foreign securities		1		3		10
Others		0		0		—
Total		41		28		37

Impairment rules applied

Impairment losses on securities which have readily determinable fair value are recognized if fair value declines by 30% or more of their cost (historical cost or amortized cost).

ƒ Impairment losses on fixed assets

	(Yen in hundred millions)
	Six months ended September 30, 2009		Year ended March 31, 2010		Six months ended September 30, 2010
Land		—		3		2
Buildings		—		0		0
Others		—		—		—
Total		—		3		2

„ Unrealized gains and losses on securities

	(Yen in hundred millions)
	As of September 30, 2009			As of March 31, 2010			As of September 30, 2010
Domestic bonds		361			320			654
Domestic stocks		5,041			5,800			4,249
Foreign securities		(369	)		(198	)		(384	)
Others		30			40			37
Total		5,064			5,963			4,556

Notes)

1. Unrealized gains and losses on monetary receivables bought are included in “Others”.

2. Besides the above, unrealized gains and losses on trust assets in money trust other than trading purposes or held to maturity amount to 0.0 billion yen for the six months ended September 30, 2009, 0.0 billion yen for the year ended March 31,2010, and (0.1) billion yen for the six months ended September 30, 2010.

46

Sompo Japan Insurance Inc. (Non-consolidated)

… Underwriting of third-sector insurance products

	(Number in hundreds)
	Six months ended September 30, 2010				Breakdown of number
	Number		Increase (Decrease)		Sompo Japan Insurance Inc.		Subsidiaries
Number of policies		5,426		166		4,318		1,107

Notes)

1. This table represents total and respective number of policies of Sompo Japan Insurance Inc. and its subsidiaries from April 1 to September 30, 2010.

2. The above numbers represent the cumulative sales of policies of medical insurance and cancer insurance.

† Claims by natural disasters

		(Yen in hundred millions)
		Six months ended September 30, 2009		Year ended March 31, 2010		Six months ended September 30, 2010
Direct claims paid	a		32		130		14
Net claims paid	b		25		116		14
Unpaid claims	c		4		15		4
Net incurred loss	b + c		30		132		18

Notes)

1. This table represents paid and unpaid claims related to natural disasters which occurred in the period.

2. Amounts of unpaid claims are calculated by deducting reinsurance recoverable on unpaid loss from direct insurance reserve for outstanding losses and claims.

‡ Catastrophic loss reserve

	(Yen in hundred millions, %)
	Six months ended September 30, 2009						Year ended March 31, 2010						Six months ended September 30, 2010
Business line	Balance		Balance ratio		Provision		Balance		Balance ratio		Provision		Balance		Balance ratio		Provision
Fire and allied insurance		1,389		105.1		93		1,485		105.4		189		1,580		119.9		95
Marine insurance		257		106.0		4		262		110.5		8		264		102.1		4
Personal accident insurance		896		66.4		21		845		67.5		39		857		63.3		21
Voluntary automobile insurance		331		5.1		196		386		6.0		386		265		4.1		194
Others		926		51.8		60		967		60.2		108		1,021		56.6		61
Total		3,801		34.1		376		3,946		36.2		732		3,989		35.8		377

Notes)

1. Balance ratio = Balance of catastrophic loss reserve / Net premiums written (excluding household earthquake and compulsory automobile liability insurance) × 100

As for the interim fiscal year, net premiums written are doubled for the calculation of balance ratio.

2. Provision represents gross amounts before excluding reversal.

ˆ Reinsurance assumed

	(Yen in hundred millions)
	Six months ended September 30, 2009				Six months ended September 30, 2010
Business line	Reinsurance premiums assumed		Reinsurance claims assumed		Reinsurance premiums assumed		Reinsurance claims assumed
Fire and allied insurance		97		40		114		29
Marine insurance		35		26		25		19
Personal accident insurance		4		3		6		3
Voluntary automobile insurance		22		8		12		10
Compulsory automobile liability insurance		539		777		565		780
Others		74		92		68		255
Total		774		949		792		1,098

‰ Reinsurance ceded

	(Yen in hundred millions)
	Six months ended September 30, 2009				Six months ended September 30, 2010
Business line	Reinsurance premiums ceded		Reinsurance claims ceded		Reinsurance premiums ceded		Reinsurance claims ceded
Fire and allied insurance		280		37		272		10
Marine insurance		59		33		57		74
Personal accident insurance		10		9		8		7
Voluntary automobile insurance		14		8		13		9
Compulsory automobile liability insurance		601		844		618		871
Others		122		67		162		24
Total		1,088		1,001		1,132		997

47

NIPPONKOA Insurance Co., Ltd. (Non-consolidated)

(1) Key figures

	(Yen in hundred millions)
	Six months ended September 30, 2009 (A)			Year ended March 31, 2010 (B)			Six months ended September 30, 2010 (C)			Increase (Decrease) (C) - (B)			Increase (Decrease) (C) - (A)
 Net premiums written		3,197			6,333			3,165			—			(31	)
Rate of change		(5.7	)%		(3.1	)%		(1.0	)%		2.1	%		4.7	%
‚ Total assets		26,348			25,924			25,081			(842	)		(1,266	)
ƒ Net loss ratio		66.2	%		69.4	%		67.1	%		(2.3	)%		0.9	%
„ Net expense ratio		35.4	%		35.8	%		35.3	%		(0.5	)%		(0.1	)%
… Combined ratio		101.6	%		105.2	%		102.4	%		(2.8	)%		0.8	%
Underwriting result ratio		(1.6	)%		(5.2	)%		(2.4	)%		2.8	%		(0.8	)%
† Voluntary automobile insurance
•    Net premiums written		1,604			3,187			1,579			—			(25	)
Rate of change		(1.9	)%		(2.0	)%		(1.6	)%		0.4	%		0.3	%
•    Underwriting result ratio		1.8	%		(2.4	)%		(2.5	)%		(0.1	)%		(4.3	)%
•    Net loss ratio		66.4	%		71.0	%		70.5	%		(0.5	)%		4.1	%
•    Net expense ratio		31.8	%		31.4	%		32.0	%		0.6	%		0.2	%
‡ Fire and allied insurance
•    Net premiums written		437			965			423			—			(13	)
Rate of change		(5.5	)%		0.8	%		(3.1	)%		(3.9	)%		2.4	%
•    Underwriting result ratio		5.9	%		7.7	%		7.8	%		0.1	%		1.9	%
•    Net loss ratio		50.5	%		48.1	%		48.6	%		0.5	%		(1.9	)%
•    Net expense ratio		43.6	%		44.2	%		43.6	%		(0.6	)%		—	%
ˆ Number of employees		8,292			8,257			9,962			1,705			1,670
‰ Number of agencies		29,055			28,520			27,972			(548	)		(1,083	)

Notes)

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

2. Net expense ratio = (Net commissions and brokerage fees + Operating, general and administrative expenses related to underwriting) / Net premiums written × 100

3. Combined ratio = Net loss ratio + Net expense ratio

4. Underwriting result ratio = 100 - Combined ratio

5. Items with % within “Increase (Decrease)” represent change from the year ended March 31, 2010 and the six months ended September 30, 2009, respectively.

6. Number of employees does not include numbers of agent trainees nor in-house agents but includes numbers of employees who are loaned from other companies.

48

NIPPONKOA Insurance Co., Ltd. (Non-consolidated)

(2) Other figures

 Non-performing loans

Risk-monitored loans

	(Yen in hundred millions)
	As of September 30, 2009			As of March 31, 2010			As of September 30, 2010
Loans to borrowers in bankruptcy		0			0			0
Overdue loans		14			11			11
Loans overdue for three months or more		0			—			—
Restructured loans		4			5			3
Total		19			17			15
Percent of total loans		0.9	%		0.8	%		0.7	%
(Reference) Total loans		2,324			2,274			2,126

Results of self-assessment

	(Yen in hundred millions)
	As of September 30, 2009		As of March 31, 2010			As of September 30, 2010
No category		26,234		25,850			24,264
Category II		115		74			80
Category III		149		17			16
Category IV		7		155			15
Subtotal (Category II-IV)		272		247			112
					��
Total		26,507		26,097			24,376

Note)

Total represents the amount before amortized or provisioned, however the amount of Category III and IV are fully amortized and/or provisioned.

‚ Impairment losses on securities

	(Yen in hundred millions)
	Six months ended September 30, 2009		Year ended March 31, 2010		Six months ended September 30, 2010
Domestic bonds		—		—		—
Domestic stocks		1		12		8
Foreign securities		1		0		2
Others		—		8		0
Total		3		21		11

Impairment rules applied

NIPPONKOA recognized impairment on securities whose fair value is determinable as of the balance sheet date if the fair value declined by 30% or more from carrying value.

ƒ Impairment losses on fixed assets

	(Yen in hundred millions)
	Six months ended September 30, 2009		Year ended March 31, 2010		Six months ended September 30, 2010
Land		0		0		3
Buildings		0		2		0
Others		—		—		0
Total		0		2		4

„ Unrealized gains and losses on securities

	(Yen in hundred millions)
	As of September 30, 2009			As of March 31, 2010			As of September 30, 2010
Domestic bonds		142			124			301
Domestic stocks		2,481			2,718			1,944
Foreign securities		(264	)		(112	)		(60	)
Others		3			5			4
Total		2,362			2,735			2,190

Note)

The above numbers represent difference between costs and book values for securities available for sale, which have readily determinable fair value.

49

NIPPONKOA Insurance Co., Ltd. (Non-consolidated)

… Underwriting of third-sector insurance products

	(Number in hundreds)
	Six months ended September 30, 2010					Breakdown of number
	Number		Increase (Decrease)			NIPPONKOA Insurance Co., Ltd.		Subsidiaries
Number of policies		564		(9	)		319		244

Notes)

1. This table represents cumulative total and respective number of policies of NIPPONKOA Insurance Co., Ltd. and its subsidiaries from April 1, 2010 to September 31, 2010.

2. The above numbers includes policies of medical insurance and cancer insurance, but excludes policies of accident insurance and nursing-care insurance.

† Claims by natural disasters

	(Yen in hundred millions)
	Six months ended September 30, 2009		Year ended March 31, 2010		Six months ended September 30, 2010
Direct claims paid		23		114		15
Net claims paid		21		108		15
Unpaid claims		9		22		7

Notes)

1. This table represents paid and unpaid claims related to natural disasters which occurred in the period.

2. “Unpaid claims” represents amounts deducting reinsurance recoverable on unpaid loss from direct insurance reserve for outstanding losses and claims.

3. Claims by natural disasters include claims caused by earthquakes.

‡ Catastrophic loss reserve

	(Yen in hundred millions, %)
	Six months ended September 30, 2009						Year ended March 31, 2010						Six months ended September 30, 2010
Business line	Balance		Balance ratio		Provision		Balance		Balance ratio		Provision		Balance		Balance ratio		Provision
Fire and allied insurance		1,175		137.7		29		1,211		128.4		65		1,240		150.2		28
Marine insurance		189		142.5		3		190		141.1		6		190		137.0		3
Personal accident insurance		246		44.7		8		210		41.5		15		199		36.5		8
Voluntary automobile insurance		172		5.4		110		219		6.9		219		109		3.5		108
Others		502		56.8		21		515		64.6		38		532		60.9		21
Total		2,286		40.6		173		2,345		42.1		345		2,271		41.0		170

Notes)

1. Balance ratio = Balance of catastrophic loss reserve / Net premiums written (excluding household earthquake and compulsory automobile liability insurance) × 100

As for the interim fiscal year, net premiums written is doubled for the calculation of balance ratio.

2. Provision represents gross amounts.

ˆ Reinsurance assumed

	(Yen in hundred millions)
	Six months ended September 30, 2009				Six months ended September 30, 2010
Business line	Reinsurance premiums assumed		Reinsurance claims assumed		Reinsurance premiums assumed		Reinsurance claims assumed
Fire and allied insurance		24		8		21		6
Marine insurance		13		8		9		8
Personal accident insurance		10		7		13		7
Voluntary automobile insurance		12		9		13		8
Compulsory automobile liability insurance		249		356		258		359
Others		13		12		14		2
Total		324		401		331		393

‰ Reinsurance ceded

	(Yen in hundred millions)
	Six months ended September 30, 2009				Six months ended September 30, 2010
Business line	Reinsurance premiums ceded		Reinsurance claims ceded		Reinsurance premiums ceded		Reinsurance claims ceded
Fire and allied insurance		139		31		153		12
Marine insurance		15		9		13		13
Personal accident insurance		7		2		7		2
Voluntary automobile insurance		15		11		14		8
Compulsory automobile liability insurance		266		374		270		379
Others		37		15		41		7
Total		480		444		501		425

50

[Supplementary Information]

Sompo Japan Insurance Inc. and NIPPONKOA Insurance Co., Ltd. (Combined)

	(Yen in hundred millions)
	Six months ended September 30, 2009 (A)			Year ended March 31, 2010 (B)			Six months  ended September 30, 2010 (C)			Increase (Decrease) (C) - (B)			Increase (Decrease) (C) - (A)
 Net premiums written		9,614			18,922			9,602			—			(11	)
Rate of change		(5.2	)%		(2.7	)%		(0.1	)%		2.5	%		5.1	%
‚ Total assets		76,435			76,216			73,654			(2,562	)		(2,780	)
ƒ Net loss ratio		71.9	%		72.4	%		68.6	%		(3.8	)%		(3.3	)%
„ Net expense ratio		34.6	%		34.6	%		34.0	%		(0.6	)%		(0.6	)%
… Combined ratio		106.4	%		107.0	%		102.6	%		(4.5	)%		(3.9	)%
Underwriting result ratio		(6.4	)%		(7.0	)%		(2.6	)%		4.5	%		3.9	%
† Voluntary automobile insurance
•     Net premiums written		4,830			9,590			4,777			—			(53	)
Rate of change		(2.0	)%		(2.1	)%		(1.1	)%		0.9	%		0.9	%
•     Underwriting result ratio		(0.9	)%		(4.0	)%		(2.6	)%		1.4	%		(1.7	)%
•     Net loss ratio		67.2	%		70.7	%		69.7	%		(1.0	)%		2.6	%
•     Net expense ratio		33.7	%		33.3	%		32.9	%		(0.4	)%		(0.8	)%
‡ Fire and allied insurance
•     Net premiums written		1,114			2,407			1,099			—			(15	)
Rate of change		(4.1	)%		(0.1	)%		(1.4	)%		(1.3	)%		2.7	%
•     Underwriting result ratio		9.9	%		10.9	%		10.5	%		(0.4	)%		0.7	%
•     Net loss ratio		46.9	%		45.8	%		45.3	%		(0.4	)%		(1.5	)%
•     Net expense ratio		43.3	%		43.4	%		44.1	%		0.8	%		0.9	%
ˆ Number of employees		25,773			25,551			28,989			3,438			3,216
‰ Number of agencies		76,391			74,814			73,505			(1,309	)		(2,886	)

Notes)

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

2. Net expense ratio = (Net commissions and brokerage fees + Operating, general and administrative expenses related to underwriting) / Net premiums written × 100

3. Combined ratio = Net loss ratio + Net expense ratio

4. Underwriting result ratio = 100 - Combined ratio

5. Items with % within “Increase (Decrease)” represent change from the year ended March 31, 2010 and the six months ended September 30, 2009, respectively.

51

Note Regarding Forward-looking Statements

This document includes “forward-looking statements” that reflect the information in relation to the NKSJ Holdings, Inc. (“NKSJ”). To the extent that statements in this document do not relate to historical or current facts, they constitute forward-looking statements. These forward-looking statements are based on the current assumptions and beliefs of NKSJ in light of the information currently available to NKSJ, and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause the actual results, performance, achievements or financial position of NKSJ, as the case may be, to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. NKSJ does not undertake or will not undertake any obligation to publicly update any forward-looking statements after the date of this document. Investors are advised to consult any further disclosures by NKSJ in their subsequent domestic filings in Japan and filings with, or submissions to, the U.S. Securities Exchange Commission pursuant to the U.S. Securities Exchange Act of 1934.

The risks, uncertainties and other factors referred to above include, but are not limited to, those below. The risks, uncertainties and other factors are also referred to in our domestic Quarterly Securities Reports.

(1) Effects of deterioration of economic and business conditions in Japan

(2) Risk of intensification of competition in the property and casualty insurance business

(3) Changes to laws, regulations, and systems

(4) Natural catastrophe risks related to insurance products

(5) Occurrence of losses exceeding projection

(6) Reinsurance risk

(7) Effects of declining stock price

(8) Effects of fluctuation in interest rate

(9) Credit risk

(10) Effects of fluctuation in foreign exchange rate

(11) Liquidity risk

(12) Life insurance business risks

(13) Overseas business risk

(14) Non-insurance business risk

(15) Credit rating downgrade

(16) Business interruption risk in case of natural disasters, etc.

(17) Information security risk

(18) Reputational risk

(19) System integration risk

(20) Risk of failure to adequately realize business integration synergies

(21) Risks related to merger of life insurance subsidiaries

(22) Other risks

52

[English Summary]

Quarterly Securities Report for the Three Months Ended September 30, 2010

1

Part 1: Corporate Information

Section 1: Information on the company

1. Trends in major business indexes

(Omitted.)

2. Business overview

(Omitted.)

3. Subsidiaries and affiliates

(Omitted.)

4. Employees

(Omitted.)

2

Section 2: Business Conditions

1. Insurance operation

(Omitted.)

2. Business risks

With respect to the information given in this quarterly report about the Company’s business conditions and financial condition in the fiscal second quarter, no matters with the potential to materially influence investors’ decisions have arisen. Further, no material changes have occurred from the information given under “Business risks” in the Company’s quarterly report for the fiscal first quarter.

The Company has no material events to report. Material events are those that raise material doubt about the assumption that the Company will continue as a going concern or materially affect the operation of the Company.

3. Significant contracts on management

(Omitted.)

4. Financial positions, results of operations, and cash flows

(Omitted.)

Section 3: Information on the facilities

(Omitted.)

3

Section 4: Information of the reporting company

1. Information on shares

(1) Total Number of Shares

(Omitted.)

(2) Stock Acquisition Rights

(Omitted.)

(3) Status of warrant bonds’ outstanding warrants with adjusted exercise prices

(Omitted.)

(4) Status of Rights Plan

(Omitted.)

(5) Changes in the Total Number of Shares Issued and the Amount of Common Stock

(Omitted.)

4

(6) Status of Major Shareholders

	(As of September 30, 2010)
Shareholders’ name	Location	Number of shares held (thousands)		Percentage of ownership based on issued shares (%)
State Street Bank and Trust Company (standing proxy: The Hongkong and Shanghai Banking Corporation Limited Tokyo Branch)	P.O. Box 351, Boston, Massachusetts 02101 U.S.A. (11-1 Nihonbashi 3-chome, Chuo-ku, Tokyo)		85,003		5.12
Japan Trustee Services Bank, Ltd. (Trust Account)	8-11 Harumi 1-chome, Chuo-ku, Tokyo		69,255		4.17
Longleaf Partners Fund (standing proxy: The Hongkong and Shanghai Banking Corporation Limited Tokyo Branch)	6410 Poplar Avenue Suite 900, Memphis, TN 38119 U.S.A. (11-1 Nihonbashi 3-chome, Chuo-ku, Tokyo)		56,402		3.39
The Master Trust Bank of Japan ,Ltd. (Trust Account)	11-3 Hamamatsucho 2-chome, Minato-ku, Tokyo		51,693		3.11
The Dai-ichi Life Insurance Company, Limited	13-1 Yurakucho 1-chome, Chiyoda-ku, Tokyo		40,908		2.46
NKSJ Holdings Employee Shareholding Plan	Human Capital and General Affairs Division, NKSJ Holdings, Inc, 26-1 Nishi-Shinjuku 1-chome, Shinjuku-ku, Tokyo		39,598		2.38
Mizuho Corporate Bank, Ltd.	3-3 Marunouchi 1-chome, Chiyoda-ku, Tokyo		34,052		2.05
Nippon Express Co., Ltd.	9-3 Higashi-Shinbashi 1-chome, Minato-ku, Tokyo		32,004		1.93
SSBT OD05 Omnibus Account - Treaty Clients (standing proxy: The Hongkong and Shanghai Banking Corporation Limited Tokyo Branch)	338 PITT Street SYDNEY NSW 2000 AUSTRALIA (11-1 Nihonbashi 3-chome, Chuo-ku, Tokyo)		24,629		1.48
Meiji Yasuda Life Insurance Company	1-1 Marunouchi 2-chome,Chiyoda-ku, Tokyo		22,503		1.35
Total	—		456,050		27.45

Notes:

1 Dai-ichi Life Insurance Company’s shareholdings include 17,971,000 shares contributed by Dai-ichi Life Insurance to a post-retirement benefit trust as a trust asset (in the shareholder registry, said shares are registered in the name of Mizuho Trust & Banking Co., Ltd., as beneficial owner on behalf of Dai-ichi Life Insurance post-retirement benefit trust).

2 During the quarter ended September 30, 2010, the Company received notification that Southeastern Asset Management Inc. owned shares as specified below as of April 1, 2010, per a large shareholding report filed on April 8, 2010, but the Company was unable to confirm the number of shares effectively owned by Southeastern Asset Management as of September 30, 2010. The Company consequently listed its top 10 shareholders above based on the information recorded in its shareholder registry.

Shareholders’ name	Location	Number of shares held (thousands)		Percentage of ownership based on issued shares (%)
Southeastern Asset Management Inc.	6410 Poplar Avenue Suite 900, Memphis, TN 38119 U.S.A.		208,200		12.53

(7) Status of Voting Rights

(Omitted.)

2. Changes in stock prices

(Omitted.)

3. Directors

(Omitted.)

5

Section 5: Financial Condition

NKSJ Holdings, Inc. prepares the interim consolidated financial statements and the interim non-consolidated financial statements for the six months ended September 30, 2010, since it conducts business defined in the provision of Article17-15 Paragraph 2 of the Cabinet Office Ordinance on Disclosure of Corporate Information, etc.

1 Basis of Preparation of the Interim Consolidated Financial Statements and the Interim Non-consolidated Financial Statements

(1) NKSJ Holdings, Inc. prepares the interim consolidated financial statements in accordance with the “Regulations concerning the Terminology, Forms and Preparation Methods of the Interim Consolidated Financial Statements” (Ministry of Finance Ordinance No. 24, 1999) and the “Ordinance for Enforcement of the Insurance Business Law” (Ministry of Finance Ordinance No. 5, 1996) pursuant to the provision of Articles 48 and 69 of the “Regulations concerning the Terminology, Forms and Preparation Methods of the Interim Consolidated Financial Statements”.

(2) NKSJ Holdings, Inc. prepares the interim non-consolidated financial statements in accordance with the “Regulations concerning the Terminology, Forms and Preparation Methods of the Interim Financial Statements” (Ministry of Finance Ordinance No. 38, 1977).

(3) NKSJ Holdings, Inc. was established as of April 1, 2010, so the interim consolidated accounting period ended September 30, 2009 (April 1 to September 30, 2009), the consolidated fiscal year ended March 31, 2010 (April 1, 2009 to March 31, 2010), the second quarter consolidated accounting period ended September 30, 2009 (July 1 to September 30, 2009), the interim accounting period ended September 30, 2009 (April 1 to September 30, 2009), and the fiscal year ended March 31, 2010 (April 1, 2009 to March 31, 2010) are not disclosed.

2 Audit Certification

In accordance with the provision of Article 193-2 Paragraph 1 of the Financial Instruments and Exchange Act, the interim consolidated financial statements for the six months ended September 30, 2010 (April 1 to September 30, 2010) and the interim non-consolidated financial statements for the six months ended September 30, 2010 (April 1 to September 30, 2010) have been audited by Ernst & Young ShinNihon LLC.

6

1. Interim Consolidated Financial Statements

(1) Interim Consolidated Balance Sheets

			(Millions of yen)
			As of September 30, 2010
Assets:
Cash and deposits		*3		270,872
Call loans				98,497
Receivables under resale agreements				82,982
Receivables under securities borrowing transactions				27,146
Monetary receivables bought				37,253
Money trusts				84,648
Securities	*3,	*4		6,511,189
Loans	*2,	*5		713,053
Tangible fixed assets	*1,	*3		362,176
Intangible fixed assets				31,566
Other assets				571,200
Deferred tax assets				242,078
Allowance for possible loan losses				(5,839	)
Total assets				9,026,824
Liabilities:
Underwriting funds:				7,352,175
Reserve for outstanding losses and claims				993,986
Underwriting reserves				6,358,188
Bonds				128,000
Other liabilities		*3		269,655
Reserve for retirement benefits				106,503
Reserve for retirement benefits to directors				113
Reserve for bonus payments				25,510
Reserves under the special laws:				21,336
Reserve for price fluctuation				21,336
Deferred tax liabilities				654
Total liabilities				7,903,947
Net assets:
Shareholders’ equity:
Common stock				100,045
Capital surplus				438,555
Retained earnings				335,209
Treasury stock				(527	)
Total shareholders’ equity				873,282
Valuation and translation adjustments:
Unrealized gains on securities available for sale, net of tax				266,889
Deferred gains on hedges				5,330
Foreign currency translation adjustments				(27,962	)
Total valuation and translation adjustments				244,258
Stock acquisition rights				2,362
Non-controlling interests				2,973
Total net assets				1,122,876
Total liabilities and net assets				9,026,824

7

(2) Interim Consolidated Statements of Income

		(Millions of yen)
		Six months ended September 30, 2010 (April 1 to September 30, 2010)
Ordinary income:			1,329,799
Underwriting income:			1,261,384
Net premiums written			987,832
Deposits of premiums by policyholders			79,398
Interest and dividend income on deposits of premiums, etc.			30,061
Life insurance premiums written			108,905
Reversal of reserve for outstanding losses and claims			35,643
Reversal of underwriting reserves			16,454
Investment income:			63,222
Interest and dividend income			78,453
Investment gains on money trusts			896
Investment gains on trading securities			67
Gains on sales of securities			5,839
Transfer of interest and dividend income on deposits of premiums, etc.			(30,061	)
Other ordinary income			5,191
Ordinary expenses:			1,290,910
Underwriting expenses:			1,048,058
Net claims paid			607,279
Loss adjustment expenses	*1		65,449
Net commissions and brokerage fees	*1		176,065
Maturity refunds to policyholders			165,853
Life insurance claims paid			28,735
Investment expenses:			24,913
Investment losses on money trusts			581
Losses on sales of securities			2,201
Impairment losses on securities			6,827
Operating, general and administrative expenses	*1		212,008
Other ordinary expenses:			5,929
Interest paid			3,619
Ordinary profit			38,888
Extraordinary gains:			2,015
Gains on disposal of fixed assets			79
Gains on negative goodwill			149
Other extraordinary gains	*3		1,785
Extraordinary losses:			4,923
Losses on disposal of fixed assets			324
Impairment losses	*2		662
Provision for reserves under the special laws:			2,843
Provision for reserve for price fluctuation			2,843
Other extraordinary losses	*4		1,093
Income before income taxes and non-controlling interests			35,980
Income taxes			2,793
Deferred income taxes			9,250
Total income taxes			12,043
Income before non-controlling interests			23,936
Non-controlling interests			(180	)
Net income			24,116

8

(3) Interim Consolidated Statements of Changes in Net Assets

	(Millions of yen)
	Six months ended September 30, 2010 (April 1 to September 30, 2010)
Shareholders’ equity:
Common stock:
Balance at the beginning of the period		70,000
Changes during the period
Issuance of new stocks - exercise of stock acquisition rights		45
Increase due to share exchange		30,000
Total changes during the period		30,045
Balance at the end of the period		100,045
Capital surplus:
Balance at the beginning of the period		24,229
Changes during the period
Issuance of new stocks - exercise of stock acquisition rights		45
Disposal of treasury stock		31
Increase due to share exchange		414,248
Total changes during the period		414,325
Balance at the end of the period		438,555
Retained earnings:
Balance at the beginning of the period		336,793
Changes during the period
Dividends		(25,700	)
Net income		24,116
Total changes during the period		(1,584	)
Balance at the end of the period		335,209
Treasury stock:
Balance at the beginning of the period		—
Changes during the period
Acquisition of treasury stock		(708	)
Disposal of treasury stock		180
Total changes during the period		(527	)
Balance at the end of the period		(527	)
Total shareholders’ equity:
Balance at the beginning of the period		431,023
Changes during the period
Issuance of new stocks - exercise of stock acquisition rights		91
Dividends		(25,700	)
Net income		24,116
Acquisition of treasury stock		(708	)
Disposal of treasury stock		212
Increase due to share exchange		444,248
Total changes during the period		442,259
Balance at the end of the period		873,282

9

	(Millions of yen)
	Six months ended September 30, 2010 (April 1 to September 30, 2010)
Valuation and translation adjustments:
Unrealized gains on securities available for sale, net of tax:
Balance at the beginning of the period		389,352
Changes during the period
Net changes in items other than shareholders’ equity		(122,463	)
Total changes during the period		(122,463	)
Balance at the end of the period		266,889
Deferred gains on hedges
Balance at the beginning of the period		—
Changes during the period
Net changes in items other than shareholders’ equity		5,330
Total changes during the period		5,330
Balance at the end of the period		5,330
Foreign currency translation adjustments:
Balance at the beginning of the period		(21,674	)
Changes during the period
Net changes in items other than shareholders’ equity		(6,287	)
Total changes during the period		(6,287	)
Balance at the end of the period		(27,962	)
Total valuation and translation adjustments:
Balance at the beginning of the period		367,678
Changes during the period
Net changes in items other than shareholders’ equity		(123,420	)
Total changes during the period		(123,420	)
Balance at the end of the period		244,258
Stock acquisition rights:
Balance at the beginning of the period		1,302
Changes during the period
Net changes in items other than shareholders’ equity		1,059
Total changes during the period		1,059
Balance at the end of the period		2,362
Non-controlling interests:
Balance at the beginning of the period		2,839
Changes during the period
Net changes in items other than shareholders’ equity		133
Total changes during the period		133
Balance at the end of the period		2,973

10

	(Millions of yen)
	Six months ended September 30, 2010 (April 1 to September 30, 2010)
Total net assets:
Balance at the beginning of the period		802,843
Changes during the period
Issuance of new stocks - exercise of stock acquisition rights		91
Dividends		(25,700	)
Net income		24,116
Acquisition of treasury stock		(708	)
Disposal of treasury stock		212
Increase due to share exchange		444,248
Net changes in items other than shareholders’ equity		(122,226	)
Total changes during the period		320,032
Balance at the end of the period		1,122,876

11

(4) Interim Consolidated Statements of Cash Flows

	(Millions of yen)
	Six months ended September 30, 2010 (April 1 to September 30, 2010)
Cash flows from operating activities:
Income before income taxes and non-controlling interests		35,980
Depreciation		9,610
Impairment losses		662
Amortization of goodwill		967
Gains on negative goodwill		(149	)
Increase (decrease) in reserve for outstanding losses and claims		(36,658	)
Increase (decrease) in underwriting reserves		(18,043	)
Increase (decrease) in allowance for possible loan losses		(1,442	)
Increase (decrease) in reserve for retirement benefits		2,946
Increase (decrease) in reserve for retirement benefits to directors		21
Increase (decrease) in reserve for bonus payments		3,034
Increase (decrease) in reserve for bonus payments to directors		(57	)
Increase (decrease) in reserve for price fluctuation		2,843
Interest and dividend income		(78,453	)
Losses (gains) on investment in securities		6,194
Interest expenses		3,619
Foreign exchange losses (gains)		5,045
Losses (gains) related to tangible fixed assets		245
Losses (gains) related to loans		0
Investment losses (gains) on the equity method		128
Decrease (increase) in other assets		85,657
Increase (decrease) in other liabilities		(26,621	)
Others		10,027
Subtotal		5,558
Interest and dividend received		83,487
Interest paid		(3,582	)
Income taxes paid		(7,822	)
Cash flows from operating activities		77,640

12

		(Millions of yen)
		Six months ended September 30, 2010 (April 1 to September 30, 2010)
Cash flows from investing activities:
Net decrease (increase) in deposits			15,265
Purchase of monetary receivables bought			(1,187	)
Proceeds from sales and redemption of monetary receivables bought			5,753
Increase in money trusts			(21	)
Decrease in money trusts			347
Purchase of securities			(488,265	)
Proceeds from sales and redemption of securities			402,055
Loans made			(98,409	)
Collection of loans			117,746
Net increase in receivables and payables under securities borrowing transactions			214
Others			10,269
Subtotal			(36,231	)
Total of operating activities and investment transactions as above			41,409
Acquisition of tangible fixed assets			(3,130	)
Proceeds from sales of tangible fixed assets			338
Acquisition of stocks of subsidiaries resulting in changes in the scope of consolidation			(6,487	)
Others			(1,951	)
Cash flows from investing activities			(47,462	)
Cash flows from financing activities:
Proceeds from issuance of stocks			0
Proceeds from sales of treasury stock			17
Acquisition of treasury stock			(708	)
Dividends paid			(25,662	)
Dividends paid to non-controlling shareholders			(5	)
Others			(1,271	)
Cash flows from financing activities			(27,630	)
Effect of exchange rate changes on cash and cash equivalents			(1,567	)
Net Increase (decrease) in cash and cash equivalents			980
Cash and cash equivalents at the beginning of the period			262,844
Net increase in cash and cash equivalents due to share exchange			141,141
Net increase in cash and cash equivalents due to merger			2,480
Cash and cash equivalents at the end of the period	*1		407,447

13

Significant Accounting Policies for the Preparation of the Interim Consolidated Financial Statements

	Six months ended September 30, 2010 (April 1 to September 30, 2010)
1       Scope of consolidation	(1)    Number of consolidated subsidiaries: 23 companies          Sompo Japan Insurance Inc.          NIPPONKOA Insurance Co., Ltd.          Sonpo 24 Insurance Co., Ltd.          Saison Automobile and Fire Insurance Company, Limited          Sompo Japan Himawari Life Insurance Co., Ltd.          NIPPONKOA Life Insurance Co., Ltd.          Sompo Japan DIY Life Insurance Co., Ltd.          Sompo Japan DC Securities Co., Ltd.          Healthcare Frontier Japan Inc.          Sompo Japan Asset Management Co., Ltd.          Sompo Japan Insurance Company of America          Sompo Japan Insurance Company of Europe Limited          NIPPONKOA Insurance Company (Europe) Limited          NIPPONKOA Management Services (Europe) Limited          Nippon Insurance Company of Europe Limited          Sompo Japan Asia Holdings Pte. Ltd.          Sompo Japan Insurance (Singapore) Pte. Ltd.          Tenet Insurance Company Limited          Sompo Japan Insurance (China) Co., Ltd.          NIPPONKOA Insurance Company (China) Limited          Sompo Japan Insurance (Hong Kong) Company Limited          NIPPONKOA Insurance Company (Asia) Limited          Yasuda Seguros S.A.
	Tenet Insurance Company Limited is the company which was acquired 100% of its shares by Sompo Japan Insurance Inc. as of May 31, 2010.
	(2)    Names of principal non-consolidated subsidiaries          Names of principal non-consolidated subsidiaries          Ark Re Limited          Sompo Japan Reinsurance Company Limited
	As the non-consolidated subsidiaries do not have a material impact on reasonable judgment about the Group’s financial conditions and results of operations in terms of total assets, ordinary income, net income or loss and retained earnings, they are excluded from the scope of consolidation.
2       Application of          the equity method	(1)    Number of affiliates accounted for under the equity method: 6 companies          Hitachi Capital Insurance Corporation          Yasuda Enterprise Development Co., Ltd.          Berjaya Sompo Insurance Berhad          Universal Sompo General Insurance Company Limited          Maritima Seguros S.A.          Maritima Saude Seguros S.A.
	(2)    The non-consolidated subsidiaries and affiliates (Ark Re Limited and Sompo Japan Reinsurance Company Limited, etc.) are not accounted for under the equity method as each company has a minor impact on net income or loss and retained earnings and they do not have a material impact as a whole.
	(3)    NKSJ Holdings, Inc. holds 26.6% of voting rights of Japan Earthquake Reinsurance Co., Ltd. (“Japan Earthquake”) through domestic property and casualty insurance subsidiaries. As Japan Earthquake is engaged in public business and NKSJ Holdings, Inc. can not have a material impact on Japan Earthquake’s decision of finance, promotion and business strategy, Japan Earthquake is excluded from affiliate.

14

	Six months ended September 30, 2010         (April 1 to September 30, 2010)
3       The interim balance sheet dates          of consolidated subsidiaries	The interim balance sheet dates of the foreign consolidated subsidiaries are June 30. As the differences in the interim balance sheet dates do not exceed three months, the interim financial statements as of June 30 are used for the preparation of the interim consolidated financial statements. Necessary adjustments are made for the significant transactions during the periods from the interim balance sheet dates of the subsidiaries to the interim consolidated balance sheet date.
4       Accounting policies	(1)    Valuation policies and methods for securities
	(a)    Trading securities are carried at fair value. Cost of sale is calculated under the moving-average method.
	(b)    Bonds held to maturity are carried at amortized cost based on the moving-average method.
	(c)    Policy reserve matching bonds are carried at amortized cost based on the moving-average method in accordance with “Temporary Treatment of Accounting and Auditing Concerning Policy Reserve Matching Bonds in the Insurance Industry” (Japanese Institute of Certified Public Accountants Industry Audit Practice Committee Report No.21). The outline of risk management policy in relation to policy reserve matching bonds is as follows. Certain domestic consolidated life insurance subsidiaries set up “policy reserve for single-premium whole-life” as a sub-category, and follow the management policy to match the duration of the policy reserve in the sub-category with the duration of policy reserve matching bonds corresponding to this sub-category within a certain range, to better manage the changes in the interest rate risk associated with the assets and liabilities.
	(d)    Stocks of non-consolidated subsidiaries and affiliates that are not accounted for under the equity method are carried at cost based on the moving-average method.
	(e)    Securities available for sale which have readily determinable fair value are carried at fair value based on the market price as of the interim balance sheet date. Changes in unrealized gains or losses, net of applicable income taxes, are directly included in net assets, and cost of sale is calculated based on the moving-average method.
	(f)     Securities available for sale which are considered extremely difficult to figure out fair value are carried at cost based on the moving-average method.
	(g)    Securities managed as trust assets in money trust for trading purposes are carried at fair value.
	(h)    Securities managed as trust assets in money trusts classified as other than trading purposes or held to maturity are carried on the same basis as that of securities available for sale.
	(2)    Valuation policies and methods for derivative financial instruments          Derivative financial instruments are carried at fair value.
	(3)    Depreciation methods of significant assets
	(a)    Tangible fixed assets (excluding lease assets) Depreciation of tangible fixed assets (excluding lease assets) held by NKSJ Holdings, Inc. and its domestic consolidated subsidiaries is computed using the declining-balance method, except for buildings (excluding fixtures attached to buildings) acquired on or after April 1, 1998 on which depreciation is computed using the straight-line method. Depreciation of tangible fixed assets (excluding lease assets) held by the foreign consolidated subsidiaries is mainly computed using the straight-line method.
	(b)    Intangible fixed assets Capitalized software for internal use held by the consolidated subsidiaries is amortized using the straight-line method based on the estimated useful life.

15

Six months ended September 30, 2010

        (April 1 to September 30, 2010)        

(4)    Accounting policies for significant reserves

(a)    Allowance for possible loan losses

In order to provide for losses from defaults, the domestic consolidated insurance subsidiaries establish allowance for possible loan losses in accordance with the internal standards for self-assessment of assets and the policy of write-off and provision.

For claims on debtors that have legally, formally or substantially entered into bankruptcy, special liquidation or whose notes have been under suspension at clearing houses, allowances are provided based on the amount remaining after deduction of the estimated recoverable amounts from the disposal of collateral and from guarantees.

For claims on debtors that are highly probable that they would bankrupt in the future, allowances are provided based on the amount remaining after deduction of the estimated recoverable amounts from the disposal of collateral and from guarantees, considering the debtor’s overall solvency assessment.

For claims other than those described above, allowances are provided based on the amount of claims multiplied by the default rate, which is computed based on historical loan loss experience.

The departments responsible for respective assets assess relevant claim in accordance with the in-house self-assessment criteria. The asset auditing department independently reviews the results and allowances are provided based on the said results.

The other consolidated subsidiaries determine the collectability of the receivables respectively to provide allowances based on the said results to cover the estimated future losses.

(b)    Reserve for retirement benefits

In order to provide for employees’ retirement benefits, the domestic consolidated subsidiaries record the amount, which was considered to occur as of the interim consolidated balance sheet date, based on the projected retirement benefit obligation and the estimated plan assets at the end of the fiscal year.

Prior service costs are amortized using the straight-line method over certain years within the average remaining service years of employees at the time of occurrence.

Actuarial gains and losses are amortized using the straight-line method over certain years within the average remaining service years of employees at the time of occurrence from the following fiscal year.

(c)    Reserve for retirement benefits to directors

In order to provide for retirement benefits to directors, the domestic consolidated subsidiaries record the amount deemed accrued as of the interim consolidated balance sheet date based on internal regulations.

(d)    Reserve for bonus payments

In order to provide for employees’ bonus payments, the estimated amounts to be paid as of the interim consolidated balance sheet date are recorded.

(e)    Reserve for price fluctuation

In order to provide for possible losses arising from price fluctuation of stock etc, the domestic consolidated insurance subsidiaries set aside reserves under Article 115 of the Insurance Business Act.

16

Six months ended September 30, 2010

        (April 1 to September 30, 2010)        

(5)    Significant hedge accounting

         Generally the domestic consolidated subsidiaries apply the deferral hedge accounting method to interest rate swaps to hedge cash flow fluctuation risk of floating-rate loans and bonds and interest rate fluctuation risk related to long-term insurance contracts based on “The accounting and auditing treatment on the application of the financial products accounting standard to the insurance industry” (Japanese Institute of Certified Public Accountants Industry Audit Practice Committee Report No.26, hereafter “Industry Audit Practice Committee Report No.26”). The exceptional treatment is applied to certain interest rate swaps to the extent that such transactions meet certain conditions required for the application of the exceptional treatment.

         The domestic consolidated subsidiaries apply fair value hedge accounting to equity swaps for hedging the future stock price fluctuation risks.

         The fair value hedge accounting method is applied to forward foreign exchanges, currency options and currency swaps in order to reduce foreign exchange rate fluctuation risk on foreign currency denominated assets. The exceptional treatment is applied to the transactions to the extent that such transactions meet certain conditions required for application of the exceptional treatment.

         Hedge effectiveness is judged by periodically comparing the accumulated fluctuations of the market value or cash flows of the hedged item to those of the related hedging instrument for the period from the commencement of the hedge to the date of judgment. However, when the material conditions are shared among the hedging instrument and the hedged item and its effectiveness is considered high, when interest rate swaps meet requirements for applying the exceptional method or when certain transactions fulfill the required conditions to apply the exceptional treatment, the judgment of the hedge effectiveness is omitted.

         The hedge effectiveness based on Industry Audit Practice Committee Report No.26 is judged by monitoring the interest rates which impact the calculation of theoretical prices of both insurance liabilities as hedged item and interest rate swaps as hedging instrument which are grouped by different remaining periods.

(6)    Cash and cash equivalents in the interim consolidated statement of cash flows

         Cash and cash equivalents in the interim consolidated statement of cash flows consist of cash on hand, demand deposits and short-term investments with original maturities or redemption of three months or less, which can be cashed easily and have few risks of fluctuation in value.

(7)    Accounting for consumption taxes

         NKSJ Holdings, Inc. and its domestic consolidated subsidiaries account for national and local consumption taxes using the tax-excluded method, except for the domestic consolidated insurance subsidiaries’ expenses such as loss adjustment expenses and operating, general and administrative expenses for which the domestic consolidated insurance subsidiaries account using the tax-included method.

         Non-deductible consumption taxes relating to assets are included in other assets and amortized in equal installments over five years.

17

Additional Information

Six months ended September 30, 2010

(April 1 to September 30, 2010)

(Subsidiaries merged and became a direct subsidiary of NKSJ Holdings, Inc.)

In accordance with approval by board of directors of Sompo Japan Insurance Inc. (Sompo Japan) and NIPPONKOA Insurance Co., Ltd. (Nipponkoa), subsidiaries of NKSJ Holdings, Inc. (NKSJ), held on July 30, 2010, Sompo Japan Asset Management Co., Ltd. and ZEST Asset Management Ltd., indirect subsidiaries of NKSJ, merged and the merged entity was renamed Sompo Japan Nipponkoa Asset Management Co., Ltd. (SJNKAM) as of October 1, 2010.

All shares of SJNKAM held by Sompo Japan and Nipponkoa were delivered in-kind to NKSJ, SJNKAM became a direct subsidiary of NKSJ as of October 1, 2010.

(Acquisition of shares)

NKSJ Holdings, Inc. (NKSJ) acquired 99.07% of the common shares of Fiba Sigorta Anonim Sirketi (Fiba Sigorta), an insurance company, through its consolidated subsidiary as of November 2, 2010, in accordance with the agreement as of June 15, 2010.

Overview of Fiba Sigorta, purpose of the acquisition of shares, etc. are as follows.

1 Overview of Fiba Sigorta

Company name: Fiba Sigorta Anonim Sirketi

Head office: Istanbul, Turkey

Description of business: Property and casualty insurance business

Net premiums written (Fiscal year ended December 31, 2009): 242 million Turkish liras (13,813 million yen)

Total assets (As of December 31, 2009): 356 million Turkish liras (20,332 million yen)

2 Purpose of the acquisition of shares

NKSJ will establish a strong platform to expand NKSJ’s property and casualty insurance business in the fast-growing Turkish market.

3 Acquisition cost

480 million Turkish liras (27,407 million yen)

Note) Yen amounts in the bracket ( ) are translated by the exchange rate (1 Turkish lira = 57.04 yen) as of September 30, 2010.

18

Notes to the Interim Consolidated Financial Statements

(Notes to the interim consolidated balance sheets)

As of September 30, 2010

*1	Accumulated depreciation of tangible fixed assets amounts to 392,426 million yen.
*2	(1)	Loans to borrowers in bankruptcy and overdue loans amount to 685 million yen and 2,836 million yen, respectively.
		Loans to borrowers in bankruptcy represent those loans (excluding the portion of the loans that were written off), on which accrued interest receivable is not recognized because repayments of principal or interest were overdue for considerable periods and they are regarded uncollectible and which met the events defined in Article 96-1-3 (the maximum amount transferable to allowance for possible loan losses) and 4 of the Corporate Income Tax Law Enforcement Regulation (Article 97 of 1965 Cabinet Order). Hereafter, those loans are referred to as “Non-accrual loans”.
		Overdue loans represent non-accrual loans other than (a) loans to borrowers in bankruptcy or (b) loans on which payments of interest are deferred in order to assist or facilitate the restructuring of borrowers in financial difficulties.
	(2)	Loans overdue for three months or more amount to 4 million yen.
		Loans overdue for three months or more represent, among loans which are not included in loans to borrowers in bankruptcy or overdue loans, loans on which the payment of principal or interest has been delayed for three months or more from the date following the due date.
	(3)	Restructured loans amount to 764 million yen.
		Restructured loans represent, among loans which are not included in any of the above categories, loans on which favorable terms for the benefit of borrowers such as interest exemption or reduction, grace on interest payments, grace on principal repayments or forgiveness of debts have been granted in order to assist or facilitate the restructuring of borrowers in financial difficulties.
	(4)	The total of loans to borrowers in bankruptcy, overdue loans, loans overdue for three months or more and restructured loans amount to 4,291 million yen.
*3	Securities of 78,639 million yen, deposits of 6,956 million yen and tangible fixed assets of 5,243 million yen are pledged as collateral.
	Other liabilities include the bank secured debt totaling 1,932 million yen.
*4	Securities include 88,853 million yen of lending securities under loan agreements.
*5	The amount of loan commitments outstanding is 11,354 million yen.
6	While the securities amounting to 31,843 million yen received under securities borrowing transactions are available for discretionary disposal through sale or re-hypothecation, all of them are held by the company.

19

(Notes to the interim consolidated statements of income)

Six months ended September 30, 2010

(April 1 to September 30, 2010)

*1 Major components of operating expenses

Agency commissions, etc.	176,325 million yen
Salaries	98,477 million yen

Operating expenses represent the sum of loss adjustment expenses, operating, general and administrative expenses and net commissions and brokerage fees included in the interim consolidated statement of income.

*2 The following assets recognize impairment losses for the six months ended September 30, 2010.

Purpose of use	Category	Location, etc.	Impairment losses (millions of yen)
			Land		Buildings		Others		Total
Properties for rent	Land and buildings	6 properties including a building for rent in Tokyo		514		102		—		616
Idle properties	Land, building and others	9 properties including a company housing in Hyogo		39		5		1		45
Total				553		107		1		662

The domestic consolidated insurance subsidiaries categorize properties used for the insurance business as a single asset group for the entire insurance business. Properties for rent, idle properties and potential disposal properties are categorized as a single asset group for each property. The other consolidated subsidiaries categorize properties used for the business as a single asset group for each subsidiary.

When properties reduce profitability significantly for the six months ended September 30, 2010, mainly due to a decline in the prices of land, the consolidated subsidiaries devalue the carrying amounts to the realizable value. These decreases in the carrying amounts are recorded as impairment losses in extraordinary losses.

The realizable value is calculated using the value in use or the net selling price for properties for rent and the net selling price for idle properties. The value in use is calculated by discounting the future cash flows at the discount rate of 5.2%. The net selling price is the appraisal value based on the Real Estate Appraisal Standard.

*3 Other extraordinary gains are 1,785 million yen of gains on extinguishment of tie-in shares.

*4 The major component of other extraordinary losses is 904 million yen of the impact related to the adoption of accounting standards for asset retirement obligations.

20

(Notes to the interim consolidated statements of changes in net assets)

Six months ended September 30, 2010 (April 1 to September 30, 2010)

1 Type and number of shares outstanding and type and number of treasury stock

	Number as of March  31, 2010 (thousand shares)		Increase for the six  months ended September 30, 2010 (thousand shares)		Decrease for the six  months ended September 30, 2010 (thousand shares)		Number as of September  30, 2010 (thousand shares)
Shares outstanding
Common stock		—		1,661,409		—		1,661,409
Total		—		1,661,409		—		1,661,409
Treasury stock
Common stock		—		1,214		307		907
Total		—		1,214		307		907

Notes)

1 Breakdown of increase in shares outstanding of common stock of 1,661,409 thousand shares is as follows.

New stocks issued in the establishment of NKSJ Holdings, Inc. through share exchange of Sompo Japan Insurance Inc. and NIPPONKOA Insurance Co., Ltd.: 1,661,263 thousand shares

Increase due to exercise of stock acquisition rights: 145 thousand shares

2 Breakdown of increase in treasury stock of common stock of 1,214 thousand shares is as follows.

Increase due to acquisition of treasury stock in accordance with approval by board of directors: 1,000 thousand shares

Increase due to purchase of shares less than a full trading unit: 214 thousand shares

3 Breakdown of decrease in treasury stock of common stock of 307 thousand shares is as follows.

Decrease due to disposal of treasury stock related to exercise of stock acquisition rights: 276 thousand shares

Decrease due to sales of shares less than a full trading unit: 30 thousand shares

2 Stock acquisition rights

Classification	Breakdown of stock acquisition rights	Balance as of September 30, 2010 (millions of yen)
NKSJ Holdings, Inc.	Stock acquisition rights for stock option		2,362
Total			2,362

3 Dividends

(1) Dividends paid

NKSJ Holdings, Inc. is a joint holding company established through share exchange on April 1, 2010, so the amounts of dividends paid are the amounts approved at each general meeting of stockholders of wholly-owned subsidiaries mentioned below.

Sompo Japan Insurance Inc.

Resolution	Type of share	Total amount of dividend		Dividend per share		Date of record	Effective date	Source of dividend
General meeting of stockholders held on June 28, 2010	Common stock		19,681 million yen		20 yen	March 31, 2010	June 29, 2010	Retained earnings

NIPPONKOA Insurance Co., Ltd.

Resolution	Type of share	Total amount of dividend		Dividend per share		Date of record	Effective date	Source of dividend
General meeting of stockholders held on June 28, 2010	Common stock		6,019 million yen		8 yen	March 31, 2010	June 29, 2010	Retained earnings

(2) Of dividends with record date within the six months ended September 30, 2010, dividends with the effective date after September 30, 2010

None.

21

(Notes to the interim consolidated statements of cash flows)

Six months ended September 30, 2010 (April 1 to September 30, 2010)
*1	Reconciliation of cash and cash equivalents to the line items disclosed in the interim consolidated balance sheet as of September 30, 2010
	Cash and deposits	270,872  million yen
	Call loans	98,497  million yen
	Receivables under resale agreements	82,982  million yen
	Securities	6,511,189  million yen
	Time deposit with an original maturity of more than 3 months	(49,919) million yen
	Securities other than cash equivalents	(6,506,174) million yen
	Cash and cash equivalents	407,447  million yen
2	Cash flows from investing activities include cash flows from investment activities conducted as a part of insurance business.

22

(Lease transactions)

Six months ended September 30, 2010

(April 1 to September 30, 2010)

1 Finance lease transactions

Finance lease transactions that do not transfer ownership accounted for in a manner similar to accounting treatment for ordinary rental transactions. (Lessee)

(1) Acquisition cost, accumulated depreciation, accumulated impairment losses and net book value of leased assets

	Acquisition cost (millions  of yen)		Accumulated depreciation (millions of yen)		Accumulated impairment  losses (millions of yen)		Net book value (millions  of yen)
Tangible fixed assets		2,834		2,244		—		589

Acquisition cost includes interest payable thereon because the balance of future lease payment accounts for a small portion of the balance of tangible fixed assets.

(2) Balance of future lease payments

Due within one year	470 million yen
Due after one year	118 million yen
Total	589 million yen

Balance of impairment losses on leased assets: — million yen

Future lease payment includes interest payable thereon because the balance of future lease payment accounts for a small portion of the balance of tangible fixed assets.

(3) Lease payment, reversal of impairment loss on leased assets, depreciation equivalent and impairment losses

Lease payment	599 million yen
Reversal of impairment losses on lease assets	—   million yen
Depreciation equivalent	599 million yen
Impairment losses	—   million yen

(4) Computation of depreciation equivalent

Depreciation equivalent is computed using the straight-line method over the lease period, with no residual value.

2 Operating lease transactions

Future lease payments related to non-cancelable operating leases

(Lessee)

Due within one year	705 million yen
Due after one year	1,321 million yen
Total	2,027 million yen

(Lessor)

Due within one year	1,544 million yen
Due after one year	7,758 million yen
Total	9,302 million yen

23

(Financial instruments)

As of September 30, 2010

Carrying amount on the interim consolidated balance sheet, fair value, and unrealized gains (losses) as of September 30, 2010 are as follows.

Meanwhile the financial instruments which NKSJ Holdings, Inc. considers extremely difficult to figure out the fair value are not included in the following table. (Please refer to “Note 2” for details.)

		(Millions of yen)
		Carrying amount on balance sheet			Fair value			Unrealized gains  (losses)
(1)	Cash and deposits		270,872			270,872			—
(2)	Call loans		98,497			98,497			—
(3)	Receivables under resale agreements		82,982			82,982			—
(4) (5)	Receivables under securities borrowing transactions Monetary receivables bought		27,146 37,253			27,146 37,253			—
(6)	Money trusts		84,213			84,213			—
(7)	Securities
	Trading securities		14,148			14,148			—
	Bonds held to maturity Policy reserve matching bonds		1,147,965 12,079			1,226,930 12,872			78,964 792
	Securities available for sale		5,147,417			5,147,417			—
(8)	Loans		713,053
	Allowance for possible loan losses (*1)		(1,506	)
			711,546			720,445			8,898
Total assets			7,634,122			7,722,778			88,655
(1)	Bonds		128,000			130,956			2,956
Total liabilities			128,000			130,956			2,956
Derivatives transactions (*2)
Not qualifying for hedge accounting			1,470	*		1,470	*		—
Qualifying for hedge accounting			11,719			11,718			(1	)
Total derivatives transactions			10,249			10,248			(1	)

(*1) General allowance for possible loan losses and individual allowance for possible loan losses responding to loans are excluded.

(*2) This table shows derivatives transactions which are allocated on other assets and other liabilities collectively.

Assets and liabilities arising out from derivatives transactions are shown on the net basis. The items which are net debt in total are shown by an asterisk (*).

24

Notes)

1 Calculation methods for the fair value of financial instruments

Assets

(1) Cash and deposits

Since all deposits are short term, the fair value approximates the book value, so the book value is presented as the fair value.

(2) Call loans

Since all call loans are short term, the fair value approximates the book value, so the book value is presented as the fair value.

(3) Receivables under resale agreements

Since all are short term, the fair value approximates the book value, so the book value is presented as the fair value.

(4) Receivables under securities borrowing transactions

Since all are short term, the fair value approximates the book value, so the book value is presented as the fair value.

(5) Monetary receivables bought

The fair value is based on the price quoted by counterparties.

(6) Money trusts

The fair value of the domestic bonds which are managed as trust assets is based on exchange price, the price released by Japan Securities Dealers Association, the price quoted by counterparties and the over-the-counter average price released by the supplier. The fair value of the domestic stocks which are managed as trust assets is based on exchange price. And the fair value of foreign securities is based on exchange price, the price released by the industry association and the price quoted by counterparties. As for derivatives transactions, the fair value of quoted derivatives is based on exchange price and the fair value of forward foreign exchange is based on forward exchange rate.

(7) Securities

The fair value of the domestic bonds is based on exchange price, the price released by Japan Securities Dealers Association and the price quoted by counterparties. The fair value of the domestic stocks is based on exchange price. And the fair value of foreign securities is based on exchange price and the price quoted by counterparties.

(8) Loans

The fair value is the amount of future collection cash flow of each loan which is discounted by the risk free rate for the corresponding the period, adding credit risk premium and liquidity premium thereto, or the total amount of principal and interest which is discounted by the expected interest rate of new loans by the types and categories of internal ratings. For the loans categorized as non-performing, probably irrecoverable, irrecoverable or some intensive control debtors, the fair value is the amount of present value of estimated future cash flow, or since the potential loan losses are estimated based on the amount expected to be covered by collateral and guarantee, the fair value approximates the amount which the current estimated loan losses are deducted from the carrying amount on the consolidated balance sheet, so such amount is presented as the fair value.

Liabilities

(1) Bonds

The fair value is calculated as the amount of future cash flow discounted at the risk free rate for the corresponding period, adding credit risk premium and liquidity premium thereto.

Derivatives transactions

Please refer to the note in “Derivatives transactions”.

As for derivatives transactions to which hedge accounting is applied, the fair value of forward foreign exchange transactions is calculated using forward exchange rate. The fair value of interest rate swap transactions is based on the price quoted by counterparties or the fair value calculated by discounting future cash flow to the present value.

25

2 The financial instruments which NKSJ Holdings, Inc. considers extremely difficult to figure out the fair value are as follows. These financial instruments are not included in “(6) Money trusts” and “(7) Securities”.

	(Millions of yen)
	Carrying amount on balance sheet
Money trusts		435
Domestic bonds		1,000
Domestic stocks		121,509
Foreign securities		41,230
Others		25,838
Total		190,013

Since domestic stocks are the unlisted stocks and do not have the quoted market price, they are not included in the scope of fair value disclosure.

Since foreign securities are the unlisted stocks or investments mainly include the unlisted stocks and do not have the quoted market price, they are not included in the scope of fair value disclosure.

Since others are investments mainly include the real estate or instruments mainly include the unlisted stocks and do not have the quoted market price, they are not included in the scope of fair value disclosure.

26

(Securities)

As of September 30, 2010

1 Bonds held to maturity

	(Millions of yen)
	Carrying amount on balance sheet		Fair value		Unrealized gains (losses)
Securities whose fair value exceeds their carrying amount on balance sheet
Domestic bonds		1,074,635		1,153,057		78,421
Foreign securities		46,701		47,441		740
Subtotal		1,121,337		1,200,499		79,161
Securities whose fair value doesn’t exceed their carrying amount on balance sheet
Domestic bonds		2,291		2,227		(64	)
Foreign securities		24,336		24,203		(133	)
Subtotal		26,628		26,430		(197	)
Total		1,147,965		1,226,930		78,964

2 Policy reserve matching bonds

	(Millions of yen)
	Carrying amount on balance sheet		Fair value		Unrealized gains (losses)
Securities whose fair value exceeds their carrying amount on balance sheet
Domestic bonds		12,079		12,872		792
Securities whose fair value doesn’t exceed their carrying amount on balance sheet
Domestic bonds		—		—		—
Total		12,079		12,872		792

3 Securities available for sale

	(Millions of yen)
	Carrying amount on balance sheet		Cost		Unrealized gains (losses)
Securities whose carrying amount on balance sheet exceeds their cost
Domestic bonds		2,486,904		2,390,706		96,197
Domestic stocks		913,245		463,232		450,012
Foreign securities		524,338		487,609		36,728
Others		69,030		64,353		4,677
Subtotal		3,993,518		3,405,901		587,617
Securities whose carrying amount on balance sheet doesn’t exceed their cost
Domestic bonds		55,228		55,943		(715	)
Domestic stocks		576,687		675,493		(98,806	)
Foreign securities		540,011		607,468		(67,457	)
Others		34,100		35,298		(1,198	)
Subtotal		1,206,027		1,374,204		(168,177	)
Total		5,199,546		4,780,106		419,439

Notes)

1 Securities available for sale, which are considered extremely difficult to figure out their fair value are not included in the above table.

2 Certificate of deposit, which are classified as cash and deposits and beneficial interests in the loan trusts, which are classified as monetary receivables bought in the interim consolidated balance sheet, are included in “Others” above.

3 Impairment losses on securities available for sale which have readily determinable fair value amount to 6,401 million yen (domestic stocks: 5,123 million yen, foreign securities: 1,277 million yen). Impairment losses on securities available for sale which are considered extremely difficult to figure out their fair value amount to 413 million yen (domestic stocks: 317 million yen, foreign securities: 47 million yen, others: 48 million yen).

NKSJ Holdings, Inc. and its domestic consolidated subsidiaries recognize impairment losses on securities available for sale which have readily determinable fair value if fair value declines by 30% or more of their cost as of the interim balance sheet date, as a rule.

27

(Money trusts)

As of September 30, 2010

1 Money trusts held to maturity

None.

2 Money trusts classified as other than trading purposes or held to maturity

	(Millions of yen)
	Carrying amount on balance sheet		Cost		Unrealized gains (losses)
Money trusts		26,616		26,359		257

Note) Money trusts, which are considered extremely difficult to figure out their fair value are not included in the above table.

28

(Derivatives transactions)

As of September 30, 2010

1 Currency derivatives

	(Millions of yen)
	Notional amount		Due after 1 year of notional amount		Fair value			Unrealized gains (losses)
Over-the-counter transactions:
Forward foreign exchanges:
Short
EUR		66,892		—		(3,062	)		(3,062	)
USD		29,161		—		760			760
Long
TRY		19,956		—		281			281
USD		19,389		—		(53	)		(53	)
Total		—		—		(2,073	)		(2,073	)

Notes)

1 Information on currency derivatives transactions other than the above-mentioned transactions is omitted because of no transactions.

2 Calculation methods for the fair value

The fair value is calculated using forward exchange rate.

As for forward foreign exchanges transactions between foreign currency and the other foreign currency, the fair value is calculated using forward exchange rate of the other foreign currency and yen on the day of forward foreign exchanges transactions.

3 Derivatives transactions to which hedge accounting is applied are excluded.

2 Interest rate derivatives

	(Millions of yen)
	Notional amount		Due after 1 year of notional amount		Fair value		Unrealized gains (losses)
Over-the-counter transactions:
Interest rate swaps:
Receive fix / Pay float		15,000		—		63		63
Total		—		—		63		63

Notes)

1 Information on interest rate derivatives transactions other than the above-mentioned transactions is omitted because of no transactions.

2 Calculation methods for the fair value

The fair value is calculated by discounting future cash flow to the present value.

3 Derivatives transactions to which hedge accounting is applied are excluded.

29

3 Equity derivatives

	(Millions of yen)
	Notional amount			Due after 1 year of notional amount			Fair value			Unrealized gains (losses)
Market transactions:
Equity index futures:
Short		5,209			—			14			14
Equity index options:
Short
Call		5,417			—
		205	*		—	*		(6	)		199
Long
Put		4,400			—
		205	*		—	*		406			201
Total		—			—			414			414

Notes)

1 Information on equity derivatives transactions other than the above-mentioned transactions is omitted because of no transactions.

2 Calculation methods for the fair value

(1) Equity index futures

The fair value is based on the closing price at major exchanges.

(2) Equity index options

The fair value is based on the closing price at major exchanges.

3 Amounts with an asterisk (*) represent the amount of the option premiums.

4 Bond derivatives

	(Millions of yen)
	Notional amount		Due after 1 year of notional amount		Fair value		Unrealized gains (losses)
Market transactions:
Bond futures:
Long		1,500		—		3		3
Total		—		—		3		3

Notes)

1 Information on bond derivatives transactions other than the above-mentioned transactions is omitted because of no transactions.

2 Calculation methods for the fair value

The fair value is based on the closing price at major exchanges.

5 Commodity derivatives

None.

30

6 Others

	(Millions of yen)
	Notional amount			Due after 1 year of notional amount			Fair value			Unrealized gains (losses)
Over-the-counter transactions:
Credit derivatives:
Short		7,000			7,000			18			18
Long		3,000			1,000			3			3
Weather derivatives:
Short		480			—
		28	*		—	*		(14	)		13
Earthquake derivatives:
Short		5,000			1,050
		141	*		21	*		(24	)		116
Long		3,555			3,033
		366	*		290	*		138			(227	)
Total		—			—			121			(75	)

Notes)

1 Calculation methods for the fair value

(1) Credit derivatives

The fair value is based on the price quoted by counterparties.

(2) Weather derivatives

The fair value is calculated based on the contract term and the element of the contract.

(3) Earthquake derivatives

The fair value is calculated based on the contract term and the element of the contract.

2 Amounts with an asterisk (*) represent the amount of the option premiums.

31

(Stock options)

Six months ended September 30, 2010 (April 1 to September 30, 2010)

1 Recorded amount and account on stock options for the six months ended September 30, 2010

Operating, general and administrative expenses: 631 million yen

2 Contents of stock options granted for the six months ended September 30, 2010

Terms of first to sixteenth issue of stock acquisition rights of NKSJ Holdings, Inc. (“NKSJ”) are those granted by NKSJ in lieu of the stock options granted by Sompo Japan Insurance Inc. (“Sompo Japan”). Terms of seventeenth to twenty-second issue of stock acquisition rights of NKSJ are those granted by NKSJ in lieu of the stock options granted by NIPPONKOA Insurance Co., Ltd. (“NIPPONKOA”).

[Stock options transferred from Sompo Japan to NKSJ]

Terms of First Issue of Stock Acquisition Rights of NKSJ

Title and number of recipients	Directors and executive officers of Sompo Japan		1
	Others (Note 1)		7
Number of stock options by types of shares (Shares)	Common stock	125,000 (Note 2)
Date of issue	April 1, 2010
Conditions to grant a right of stock options	The right was granted on the date of issue
Length of services required	–
Exercise period	April 1, 2010 to June 27, 2012
Exercise price (Yen)			777
Fair value per share as of the date of issue (Yen)		– (Note 3)

Notes)

1 “Others” in the table represents recipients at the time of issue by Sompo Japan but who have already been retired as of the date of issue by NKSJ.

2 Number of stock options is indicated by converting to number of shares.

3 Amount is not indicated because the stock acquisition rights have been issued in accordance with Articles 280-20 and 280-21 of the former Japanese Commercial Code revised in 2001 and have been transferred to NKSJ.

32

Terms of Second Issue of Stock Acquisition Rights of NKSJ

Title and number of recipients	Directors and executive officers of Sompo Japan		0
	Others (Note 1)		1
Number of stock options by types of shares (Shares)	Common stock	10,000 (Note 2)
Date of issue	April 1, 2010
Conditions to grant a right of stock options	The right was granted on the date of issue
Length of services required	–
Exercise period	April 1, 2010 to June 27, 2012
Exercise price (Yen)			712
Fair value per share as of the date of issue (Yen)		– (Note 3)

Notes)

1 “Others” in the table represents recipients at the time of issue by Sompo Japan but who have already been retired as of the date of issue by NKSJ.

2 Number of stock options is indicated by converting to number of shares.

3 Amount is not indicated because the stock acquisition rights have been issued in accordance with Articles 280-20 and 280-21 of the former Japanese Commercial Code revised in 2001 and have been transferred to NKSJ.

Terms of Third Issue of Stock Acquisition Rights of NKSJ

Title and number of recipients	Directors and executive officers of Sompo Japan		1
	Others (Note 1)		1
Number of stock options by types of shares (Shares)	Common stock	20,000 (Note 2)
Date of issue	April 1, 2010
Conditions to grant a right of stock options	The right was granted on the date of issue
Length of services required	–
Exercise period	April 1, 2010 to June 27, 2012
Exercise price (Yen)			581
Fair value per share as of the date of issue (Yen)		– (Note 3)

Notes)

1 “Others” in the table represents recipients at the time of issue by Sompo Japan but who have already been retired as of the date of issue by NKSJ.

2 Number of stock options is indicated by converting to number of shares.

3 Amount is not indicated because the stock acquisition rights have been issued in accordance with Articles 280-20 and 280-21 of the former Japanese Commercial Code revised in 2001 and have been transferred to NKSJ.

33

Terms of Fourth Issue of Stock Acquisition Rights of NKSJ

Title and number of recipients	Directors and executive officers of Sompo Japan		0
	Others (Note 1)		3
Number of stock options by types of shares (Shares)	Common stock	30,000 (Note 2)
Date of issue	April 1, 2010
Conditions to grant a right of stock options	The right was granted on the date of issue
Length of services required	–
Exercise period	April 1, 2010 to June 27, 2012
Exercise price (Yen)			574
Fair value per share as of the date of issue (Yen)		– (Note 3)

Notes)

1 “Others” in the table represents recipients at the time of issue by Sompo Japan but who have already been retired as of the date of issue by NKSJ.

2 Number of stock options is indicated by converting to number of shares.

3 Amount is not indicated because the stock acquisition rights have been issued in accordance with Articles 280-20 and 280-21 of the former Japanese Commercial Code revised in 2001 and have been transferred to NKSJ.

Terms of Fifth Issue of Stock Acquisition Rights of NKSJ

Title and number of recipients	Directors and executive officers of Sompo Japan		3
	Others (Note 1)		12
Number of stock options by types of shares (Shares)	Common stock	90,000 (Note 2)
Date of issue	April 1, 2010
Conditions to grant a right of stock options	The right was granted on the date of issue
Length of services required	–
Exercise period	April 1, 2010 to June 27, 2013
Exercise price (Yen)			735
Fair value per share as of the date of issue (Yen)		– (Note 3)

Notes)

1 “Others” in the table represents recipients at the time of issue by Sompo Japan but who have already been retired as of the date of issue by NKSJ.

2 Number of stock options is indicated by converting to number of shares.

3 Amount is not indicated because the stock acquisition rights have been issued in accordance with Articles 280-20 and 280-21 of the former Japanese Commercial Code revised in 2001 and have been transferred to NKSJ.

34

Terms of Sixth Issue of Stock Acquisition Rights of NKSJ

Title and number of recipients	Directors and executive officers of Sompo Japan		3
	Others (Note 1)		18
Number of stock options by types of shares (Shares)	Common stock	130,000 (Note 2)
Date of issue	April 1, 2010
Conditions to grant a right of stock options	The right was granted on the date of issue
Length of services required	–
Exercise period	April 1, 2010 to June 27, 2013
Exercise price (Yen)			901
Fair value per share as of the date of issue (Yen)		– (Note 3)

Notes)

1 “Others” in the table represents recipients at the time of issue by Sompo Japan but who have already been retired as of the date of issue by NKSJ.

2 Number of stock options is indicated by converting to number of shares.

3 Amount is not indicated because the stock acquisition rights have been issued in accordance with Articles 280-20 and 280-21 of the former Japanese Commercial Code revised in 2001 and have been transferred to NKSJ.

Terms of Seventh Issue of Stock Acquisition Rights of NKSJ

Title and number of recipients	Directors and executive officers of Sompo Japan		5
	Others (Note 1)		27
Number of stock options by types of shares (Shares)	Common stock	255,000 (Note 2)
Date of issue	April 1, 2010
Conditions to grant a right of stock options	The right was granted on the date of issue
Length of services required	–
Exercise period	April 1, 2010 to June 29, 2014
Exercise price (Yen)			1,167
Fair value per share as of the date of issue (Yen)		– (Note 3)

Notes)

1 “Others” in the table represents recipients at the time of issue by Sompo Japan but who have already been retired as of the date of issue by NKSJ.

2 Number of stock options is indicated by converting to number of shares.

3 Amount is not indicated because the stock acquisition rights have been issued in accordance with Articles 280-20 and 280-21 of the former Japanese Commercial Code revised in 2001 and have been transferred to NKSJ.

35

Terms of Eighth Issue of Stock Acquisition Rights of NKSJ

Title and number of recipients	Directors and executive officers of Sompo Japan		6
	Others (Note 1)		26
Number of stock options by types of shares (Shares)	Common stock	262,000 (Note 2)
Date of issue	April 1, 2010
Conditions to grant a right of stock options	The right was granted on the date of issue
Length of services required	–
Exercise period	April 1, 2010 to June 29, 2014
Exercise price (Yen)			1,082
Fair value per share as of the date of issue (Yen)		– (Note 3)

Notes)

1 “Others” in the table represents recipients at the time of issue by Sompo Japan but who have already been retired as of the date of issue by NKSJ.

2 Number of stock options is indicated by converting to number of shares.

3 Amount is not indicated because the stock acquisition rights have been issued in accordance with Articles 280-20 and 280-21 of the former Japanese Commercial Code revised in 2001 and have been transferred to NKSJ.

Terms of Ninth Issue of Stock Acquisition Rights of NKSJ

Title and number of recipients	Directors and executive officers of Sompo Japan		11
	Others (Note 1)		34
Number of stock options by types of shares (Shares)	Common stock	363,000 (Note 2)
Date of issue	April 1, 2010
Conditions to grant a right of stock options	The right was granted on the date of issue
Length of services required	–
Exercise period	April 1, 2010 to June 28, 2015
Exercise price (Yen)			1,148
Fair value per share as of the date of issue (Yen)		– (Note 3)

Notes)

1 “Others” in the table represents recipients at the time of issue by Sompo Japan but who have already been retired as of the date of issue by NKSJ.

2 Number of stock options is indicated by converting to number of shares.

3 Amount is not indicated because the stock acquisition rights have been issued in accordance with Articles 280-20 and 280-21 of the former Japanese Commercial Code revised in 2001 and have been transferred to NKSJ.

36

Terms of Tenth Issue of Stock Acquisition Rights of NKSJ

Title and number of recipients	Directors and executive officers of Sompo Japan		11
	Others (Note 1)		35
Number of stock options by types of shares (Shares)	Common stock	365,000 (Note 2)
Date of issue	April 1, 2010
Conditions to grant a right of stock options	The right was granted on the date of issue
Length of services required	–
Exercise period	April 1, 2010 to June 28, 2015
Exercise price (Yen)			1,665
Fair value per share as of the date of issue (Yen)		– (Note 3)

Notes)

1 “Others” in the table represents recipients at the time of issue by Sompo Japan but who have already been retired as of the date of issue by NKSJ.

2 Number of stock options is indicated by converting to number of shares.

3 Amount is not indicated because the stock acquisition rights have been issued in accordance with Articles 280-20 and 280-21 of the former Japanese Commercial Code revised in 2001 and have been transferred to NKSJ.

Terms of Eleventh Issue of Stock Acquisition Rights of NKSJ

Title and number of recipients	Directors and executive officers of Sompo Japan		11
	Others (Note 1)		31
Number of stock options by types of shares (Shares)	Common stock	324,000 (Note 2)
Date of issue	April 1, 2010
Conditions to grant a right of stock options	The right was granted on the date of issue
Length of services required	–
Exercise period	April 1, 2010 to June 28, 2016
Exercise price (Yen)			1,598
Fair value per share as of the date of issue (Yen)		470 (Note 3)

Notes)

1 “Others” in the table represents recipients at the time of issue by Sompo Japan but who have already been retired as of the date of issue by NKSJ.

2 Number of stock options is indicated by converting to number of shares.

3 Fair value per share at the time of issue by Sompo Japan is indicated in the table.

37

Terms of Twelfth Issue of Stock Acquisition Rights of NKSJ

Title and number of recipients	Directors and executive officers of Sompo Japan		11
	Others (Note 1)		30
Number of stock options by types of shares (Shares)	Common stock	316,000 (Note 2)
Date of issue	April 1, 2010
Conditions to grant a right of stock options	The right was granted on the date of issue
Length of services required	–
Exercise period	April 1, 2010 to June 28, 2016
Exercise price (Yen)			1,623
Fair value per share as of the date of issue (Yen)			515 (Note 3)

Notes)

1 “Others” in the table represents recipients at the time of issue by Sompo Japan but who have already been retired as of the date of issue by NKSJ.

2 Number of stock options is indicated by converting to number of shares.

3 Fair value per share at the time of issue by Sompo Japan is indicated in the table.

Terms of Thirteenth Issue of Stock Acquisition Rights of NKSJ

Title and number of recipients	Directors and executive officers of Sompo Japan		17
	Others (Note 1)		24
Number of stock options by types of shares (Shares)	Common stock	403,000 (Note 2)
Date of issue	April 1, 2010
Conditions to grant a right of stock options	The right was granted on the date of issue
Length of services required	–
Exercise period	April 1, 2010 to June 27, 2017
Exercise price (Yen)			1,547
Fair value per share as of the date of issue (Yen)		379 (Note 3)

Notes)

1 “Others” in the table represents recipients at the time of issue by Sompo Japan but who have already been retired as of the date of issue by NKSJ.

2 Number of stock options is indicated by converting to number of shares.

3 Fair value per share at the time of issue by Sompo Japan is indicated in the table.

38

Terms of Fourteenth Issue of Stock Acquisition Rights of NKSJ

Title and number of recipients	Directors and executive officers of Sompo Japan		17
	Others (Note 1)		24
Number of stock options by types of shares (Shares)	Common stock	382,000 (Note 2)
Date of issue	April 1, 2010
Conditions to grant a right of stock options	The right was granted on the date of issue
Length of services required	–
Exercise period	April 1, 2010 to June 27, 2017
Exercise price (Yen)			990
Fair value per share as of the date of issue (Yen)		236 (Note 3)

Notes)

1 “Others” in the table represents recipients at the time of issue by Sompo Japan but who have already been retired as of the date of issue by NKSJ.

2 Number of stock options is indicated by converting to number of shares.

3 Fair value per share at the time of issue by Sompo Japan is indicated in the table.

Terms of Fifteenth Issue of Stock Acquisition Rights of NKSJ

Title and number of recipients	Directors and executive officers of Sompo Japan		27
	Others (Note 1)		1
Number of stock options by types of shares (Shares)	Common stock	297,300 (Note 2)
Date of issue	April 1, 2010
Conditions to grant a right of stock options	The right was granted on the date of issue
Length of services required	–
Exercise period	April 1, 2010 to August 11, 2033
Exercise price (Yen)			1
Fair value per share as of the date of issue (Yen)		940 (Note 3)

Notes)

1 “Others” in the table represents recipients at the time of issue by Sompo Japan but who have already been retired as of the date of issue by NKSJ.

2 Number of stock options is indicated by converting to number of shares.

3 Fair value per share at the time of issue by Sompo Japan is indicated in the table.

39

Terms of Sixteenth Issue of Stock Acquisition Rights of NKSJ

Title and number of recipients	Directors and executive officers of Sompo Japan		41
	Others (Note 1)		1
Number of stock options by types of shares (Shares)	Common stock	747,100 (Note 2)
Date of issue	April 1, 2010
Conditions to grant a right of stock options	The right was granted on the date of issue
Length of services required	–
Exercise period	April 1, 2010 to August 10, 2034
Exercise price (Yen)			1
Fair value per share as of the date of issue (Yen)		623 (Note 3)

Notes)

1 “Others” in the table represents recipients at the time of issue by Sompo Japan but who have already been retired as of the date of issue by NKSJ.

2 Number of stock options is indicated by converting to number of shares.

3 Fair value per share at the time of issue by Sompo Japan is indicated in the table.

[Stock options transferred from NIPPONKOA to NKSJ]

Terms of Seventeenth Issue of Stock Acquisition Rights of NKSJ

Title and number of recipients	Directors and executive officers of NIPPONKOA		5
	Others (Note 1)		7
Number of stock options by types of shares (Shares)	Common stock	143,100 (Note 2)
Date of issue	April 1, 2010
Conditions to grant a right of stock options	The right was granted on the date of issue
Length of services required	–
Exercise period	April 1, 2010 to June 29, 2024
Exercise price (Yen)			1
Fair value per share as of the date of issue (Yen)		596

Notes)

1 “Others” in the table represents recipients at the time of issue by NIPPONKOA but who have already been retired as of the date of issue by NKSJ.

2 Number of stock options is indicated by converting to number of shares.

40

Terms of Eighteenth Issue of Stock Acquisition Rights of NKSJ

Title and number of recipients	Directors and executive officers of NIPPONKOA		7
	Others (Note 1)		11
Number of stock options by types of shares (Shares)	Common stock	201,600 (Note 2)
Date of issue	April 1, 2010
Conditions to grant a right of stock options	The right was granted on the date of issue
Length of services required	–
Exercise period	April 1, 2010 to June 29, 2025
Exercise price (Yen)			1
Fair value per share as of the date of issue (Yen)		596

Notes)

1 “Others” in the table represents recipients at the time of issue by NIPPONKOA but who have already been retired as of the date of issue by NKSJ.

2 Number of stock options is indicated by converting to number of shares.

Terms of Nineteenth Issue of Stock Acquisition Rights of NKSJ

Title and number of recipients	Directors and executive officers of NIPPONKOA		12
	Others (Note 1)		2
Number of stock options by types of shares (Shares)	Common stock	110,700 (Note 2)
Date of issue	April 1, 2010
Conditions to grant a right of stock options	The right was granted on the date of issue
Length of services required	–
Exercise period	April 1, 2010 to March 27, 2027
Exercise price (Yen)			1
Fair value per share as of the date of issue (Yen)		610

Notes)

1 “Others” in the table represents recipients at the time of issue by NIPPONKOA but who have already been retired as of the date of issue by NKSJ.

2 Number of stock options is indicated by converting to number of shares.

41

Terms of Twentieth Issue of Stock Acquisition Rights of NKSJ

Title and number of recipients	Directors and executive officers of NIPPONKOA		12
	Others (Note 1)		2
Number of stock options by types of shares (Shares)	Common stock	121,500 (Note 2)
Date of issue	April 1, 2010
Conditions to grant a right of stock options	The right was granted on the date of issue
Length of services required	–
Exercise period	April 1, 2010 to March 17, 2028
Exercise price (Yen)			1
Fair value per share as of the date of issue (Yen)		610

Notes)

1 “Others” in the table represents recipients at the time of issue by NIPPONKOA but who have already been retired as of the date of issue by NKSJ.

2 Number of stock options is indicated by converting to number of shares.

Terms of Twenty-First Issue of Stock Acquisition Rights of NKSJ

Title and number of recipients	Directors and executive officers of NIPPONKOA		16
	Others (Note 1)		3
Number of stock options by types of shares (Shares)	Common stock	247,500 (Note 2)
Date of issue	April 1, 2010
Conditions to grant a right of stock options	The right was granted on the date of issue
Length of services required	–
Exercise period	April 1, 2010 to March 16, 2029
Exercise price (Yen)			1
Fair value per share as of the date of issue (Yen)		610

Notes)

1 “Others” in the table represents recipients at the time of issue by NIPPONKOA but who have already been retired as of the date of issue by NKSJ.

2 Number of stock options is indicated by converting to number of shares.

42

Terms of Twenty-Second Issue of Stock Acquisition Rights of NKSJ

Title and number of recipients	Directors and executive officers of NIPPONKOA		21
	Others (Note 1)		3
Number of stock options by types of shares (Shares)	Common stock	353,700 (Note 2)
Date of issue	April 1, 2010
Conditions to grant a right of stock options	The right was granted on the date of issue
Length of services required	–
Exercise period	April 1, 2010 to October 7, 2029
Exercise price (Yen)			1
Fair value per share as of the date of issue (Yen)		610

Notes)

1 “Others” in the table represents recipients at the time of issue by NIPPONKOA but who have already been retired as of the date of issue by NKSJ.

2 Number of stock options is indicated by converting to number of shares.

[Stock options granted by NKSJ]

Terms of Twenty-Third Issue of Stock Acquisition Rights of NKSJ

Title and number of recipients	Directors and executive officers of NKSJ		7
	Directors and executive officers of Sompo Japan		40
	Directors and executive officers of NIPPONKOA		26
	(Note 1, 2)
Number of stock options by types of shares (Shares)	Common stock	1,397,800 (Note 3)
Date of issue	August 16, 2010
Conditions to grant a right of stock options	The right was granted on the date of issue
Length of services required	–
Exercise period	August 17, 2010 to August 16, 2035
Exercise price (Yen)			1
Fair value per share as of the date of issue (Yen)		452

Notes)

1 “Directors” in the table excludes outside directors and non-full time directors.

2 Since several directors and executive officers of NKSJ and Sompo Japan or NIPPONKOA hold positions concurrently at more than one of these companies, the actual number of the persons whom the stock acquisition rights are granted is 69.

3 Number of stock options is indicated by converting to number of shares.

43

(Business combinations)

Six months ended September 30, 2010 (April 1 to September 30, 2010)

1 Business integration

(1) The name of acquiree and its type of business, reason for the business integration, date of integration, legal form of the integration, name of the controlling entity after the integration, percentage of voting rights acquired and the primary reason for defining the acquirer

(a) The name of acquiree and its type of business

NIPPONKOA Insurance Co., Ltd.    :Property and casualty insurance business

(b) Reason for the business integration

In the face of the declining birthrate and aging society—the significant challenges Japan faces in the medium to long-term period—as well as of increased risks associated with depopulating society, deteriorating global climate change, and in response to the diversified consumer demands amidst the individuals’ lifestyle changes, companies are urged to take proper actions and contribute to social safety and to customers’ sense of security.

Based on this shared perspective, Sompo Japan Insurance Inc. (Sompo Japan) and NIPPONKOA Insurance Co., Ltd. (Nipponkoa) decided to establish a—new solution service group which provides customers with security and service of the highest quality and contribute to social welfare, while sharing as a unitary group the strengths nurtured through 120 years of their respective history.

(c) Date of integration

April, 1, 2010

(d) Legal form of the integration

Share exchange

(e) Name of the controlling entity after the integration

NKSJ Holdings, Inc.

(f) Percentage of voting rights acquired

100%

(g) The primary reason for defining the acquiror

Sompo Japan was defined as the acquiror based on relative ownership percentage of voting rights in general.

(2) The business term of the acquiree included in the interim consolidated financial statements

From April 1, 2010 to September 30, 2010

(3) Acquisition cost with details of the acquiree

Purchase price	444,248 million yen
Amount of stock acquisition rights	713 million yen
Total	444,962 million yen

44

(4) Share exchange ratio, basis of calculation for the share exchange and the number of shares to be allotted

(a) Share exchange ratio

One share of common stock of NKSJ Holdings, Inc. (NKSJ) was allotted and delivered for each share of common stock of Sompo Japan, and 0.9 shares of common stock of NKSJ were allotted and delivered for each share of common stock of Nipponkoa.

(b) Basis of calculation for the allotment in relation to the share exchange

In order to ensure the fairness of the share exchange ratio to be used in the share exchange, Sompo Japan appointed Nomura Securities Co., Ltd., Mizuho Securities Co., Ltd. and Goldman Sachs Japan Co., Ltd., and Nipponkoa appointed Merrill Lynch Japan Securities Co., Ltd. and Mitsubishi UFJ Securities Co., Ltd. to calculate the share exchange ratio. Based on the calculation results and a comprehensive consideration of the financial conditions, asset conditions and future outlook of the Parties, Sompo Japan and Nipponkoa engaged in careful deliberation concerning the share exchange ratio. The Parties concluded and agreed that the share exchange ratio mentioned above is appropriate.

(c) Number of shares to be allotted

Sompo Japan	984,055,299 shares
Nipponkoa	677,207,979 shares

(5) Negative goodwill

(a) Amount of negative goodwill

149 million yen

(b) Reason for recognizing negative goodwill

The net amounts of assets acquired and liabilities assumed on the day of business integration exceeded the amount of investment based on evaluation of entity.

(6) Amounts of assets acquired and liabilities assumed on the day of business integration

Total assets:	3,064,910 million yen
Securities	2,180,871 million yen
Total liabilities:	2,619,450 million yen
Underwriting funds	2,482,288 million yen

45

2 Business integration

(1) The name of acquiree and its type of business, reason for the business integration, date of integration, legal form of the integration, name of the controlling entity after the integration, percentage of voting rights acquired and the primary reason for defining the acquiror

(a) The name of acquiree and its type of business

Tenet Insurance Company Limited (Tenet)    :Property and casualty insurance business

(b) Reason for the business integration

Through the acquisition of Tenet, Sompo Japan Group plans to further strengthen its solid platform and expand its operations in Singapore and Southeast Asia.

(c) Date of integration

May, 31, 2010

(d) Legal form of the integration

Acquisition of shares by cash

(e) Name of the controlling entity after the integration

Tenet Insurance Company Limited

(f) Percentage of voting rights acquired

100%

(g) The primary reason for defining the acquiror

Sompo Japan was defined as the acquiror because Sompo Japan acquired shares of Tenet by cash.

(2) The business term of the acquiree included in the interim consolidated financial statements

From June 1, 2010 to June 30, 2010

(3) Acquisition cost with details of the acquiree

Purchase price	97 million Singapore dollar
Direct cost for the acquisition	2 million Singapore dollar
Total	99 million Singapore dollar

(4) Goodwill

(a) Amount of goodwill

39 million Singapore dollar

(b) Reason for recognizing goodwill

The acquisition cost exceeded the net amounts of assets acquired and liabilities assumed on the day of business integration.

(c) Method and term of amortization

Straight-line amortization in 20 years

(5) Amounts of assets acquired and liabilities assumed on the day of business integration

Total assets:	122 million Singapore dollar
Deposits	72 million Singapore dollar
Total liabilities:	62 million Singapore dollar
Underwriting funds	55 million Singapore dollar

46

(Segment information)

[Segment information]

Six months ended September 30, 2010 (April 1 to September 30, 2010)

1 Summary of reportable segments

The reportable segment of NKSJ Holdings, Inc. (NKSJ) is the component of our company, for which discrete financial information is available, and whose operating results are regularly reviewed by the board of directors to make decisions about resources to be allocated to the segment and assess its performance.

The respective group companies of NKSJ determine their comprehensive strategies for their operations as independent management unit and roll out their operations under the group-wide management policy of NKSJ.

Therefore, NKSJ is composed of the business segments which include the respective group companies as a minimum component, and “Property and casualty insurance business” and “Life insurance business” are determined as the reportable segments. NKSJ and other operations which are not covered by the reportable segments, are included in “Others”. The major companies which constitute each reportable segment and “Others” are listed below.

“Property and casualty insurance business” conducts underwriting of property and casualty insurance and related investment activities. “Life insurance business” conducts underwriting of life insurance and related investment activities.

	Major companies
Reportable segments
Property and casualty insurance business	Sompo Japan Insurance Inc. NIPPONKOA Insurance Co., Ltd. Sonpo 24 Insurance Co., Ltd. Saison Automobile and Fire Insurance Company, Limited Sompo Japan Insurance Company of America Sompo Japan Insurance Company of Europe Limited Yasuda Seguros S.A.
Life insurance business	Sompo Japan Himawari Life Insurance Co., Ltd. NIPPONKOA Life Insurance Co., Ltd. Sompo Japan DIY Life Insurance Co., Ltd.
Others	NKSJ Holdings, Inc. Sompo Japan DC Securities Co., Ltd. Healthcare Frontier Japan Inc. Sompo Japan Asset Management Co., Ltd. Yasuda Enterprise Development Co., Ltd.

2 Calculation methods for the amount of sales, net income or loss, assets and other items by each reportable segment

The accounting methods of reportable business segments are the same methods as that mentioned in “Significant Accounting Policies for the Preparation of the Interim Consolidated Financial Statements”. Net income or loss attributable to the reportable segments is the amounts based on net income in the interim consolidated statements of income.

Income arising from internal segment is based on the price of transactions among third parties.

47

3 Information related to the amount of sales, net income or loss, assets and other items by each reportable segment

	(Millions of yen)
	Reportable segments									Others (Note  2)			Total			Adjustment (Note 3)			Carrying amount on the interim consolidated financial statements (Note 4)
	Property and casualty insurance business			Life insurance business			Total
Sales (Note 1)
Sales from transactions with external customers		987,832			108,905			1,096,738			2,335			1,099,074			230,724			1,329,799
Sales arising from internal segment		—			—			—			1,485			1,485			(1,485	)		—
Total		987,832			108,905			1,096,738			3,821			1,100,560			229,238			1,329,799
Net income (loss) attributable to segment		27,617			(2,379	)		25,237			(1,121	)		24,116			—			24,116
Assets attributable to segment		7,346,334			1,671,397			9,017,732			9,091			9,026,824			—			9,026,824
Other items
Depreciation expenses		8,853			629			9,482			127			9,610			—			9,610
Amortization of goodwill		31			936			967			—			967			—			967
Interest and dividend income		65,232			13,535			78,767			1			78,768			(314	)		78,453
Interest paid		3,571			46			3,617			5			3,623			(4	)		3,619
Investment gains (losses) on the equity method		(129	)		—			(129	)		0			(128	)		—			(128	)
Extraordinary gains:		2,025			—			2,025			—			2,025			(10	)		2,015
Gains on negative goodwill		149			—			149			—			149			—			149
Extraordinary losses:		4,438			493			4,932			1			4,934			(10	)		4,923
Impairment losses		662			—			662			—			662			—			662
Income tax expense		12,524			(491	)		12,032			10			12,043			—			12,043
Investment in affiliates accounted for under the equity method		19,127			—			19,127			1,159			20,286			—			20,286
Increase in tangible fixed assets and intangible fixed assets		7,788			1,446			9,235			353			9,588			—			9,588

Notes)
1       The definitions of sales are as follows.
Property and casualty insurance business:	Net premiums written
Life insurance business:	Life insurance premiums written
“Others” and carrying amount on the interim consolidated financial statements:	Ordinary income
2       “Others” is business segments which are not included in reportable segments. It includes other operations.
3       Adjustments of sales are as follows.
Elimination of transactions arising from internal segment:	(1,485) million yen
Ordinary income related to property and casualty insurance business and life insurance business excluding net premiums written and life insurance premiums written:	230,724 million yen
4       Net income or loss attributable to segment is adjusted to net income in the interim consolidated statements of income.

48

[Related information]

Six months ended September 30, 2010 (April 1 to September 30, 2010)

1 Information by products and services

(1) Property and casualty insurance business

	(Millions of yen)
	Fire and allied insurance		Marine insurance		Personal accident insurance		Voluntary automobile insurance		Compulsory automobile liability insurance		Others		Total
Sales from transactions with external customers		114,169		23,893		96,874		490,656		124,069		138,170		987,832

Note) Sales represent amounts of net premiums written.

(2) Life insurance business

	(Millions of yen)
	Individual insurance		Individual annuities		Group insurance		Group annuities		Total
Sales from transactions with external customers		98,589		5,178		5,138		—		108,905

Note) Sales represent amounts of life insurance premiums written.

2 Information by geographic area

(1) Sales

Geographic information is omitted because sales from transactions with external customers attributed to Japan constitute more than 90 percent of sales in the interim consolidated statements of income.

(2) Tangible fixed assets

Geographic information is omitted because tangible fixed assets located in Japan constitute more than 90 percent of tangible fixed assets in the interim consolidated balance sheets.

3 Information by major customers

None.

49

[Information related to impairment losses on fixed assets by reportable segments]

Six months ended September 30, 2010 (April 1 to September 30, 2010)

	(Millions of yen)
	Reportable segments						Others		Unallocated amounts  and eliminations		Total
	Property and casualty insurance business		Life insurance business		Total
Impairment losses		662		—		662		—		—		662

[Information related to amortization of goodwill and balance of goodwill by reportable segments]

Six months ended September 30, 2010 (April 1 to September 30, 2010)

	(Millions of yen)
	Reportable segments						Others		Unallocated amounts  and eliminations		Total
	Property and casualty insurance business		Life insurance business		Total
Amortization for the six months ended September 30, 2010		31		936		967		—		—		967
Balance as of September 30, 2010		2,429		20,288		22,718		—		—		22,718

[Information related to gains on negative goodwill by reportable segments]

Six months ended September 30, 2010 (April 1 to September 30, 2010)

	(Millions of yen)
	Reportable segments						Others		Unallocated amounts  and eliminations		Total
	Property and casualty insurance business		Life insurance business		Total
Gains on negative goodwill		149		—		149		—		—		149

Outline of events resulting in recognition of gains on negative goodwill

Property and casualty insurance business:

As mentioned in “Business Combinations”, Sompo Japan Insurance Inc., which was defined as the acquirer, acquired NIPPONKOA Insurance Co., Ltd. through share exchange, and NKSJ Holdings, Inc. was established as a joint holding company as of April 1, 2010.

50

(Per share information)

	Six months ended September 30, 2010
	(April 1 to September 30, 2010)
Total net assets per share		673.01 yen
Net income per share—Basic		14.52 yen
Net income per share—Diluted		14.50 yen

Notes)

1 Calculation of basic net income per share and diluted net income per share is based on the following figures.

	(Millions of yen)
	Six months ended September 30, 2010 (April 1 to September 30, 2010)
Net income per share—Basic
Net income	24,116
Net income not attributable to common stockholders	—
Net income attributable to common stocks	24,116
Average number of common stocks outstanding	thousand shares 1,660,781
Net income per share—Diluted
Adjustment of net income	—
Increase of common stocks:	thousand shares 2,306
Stock acquisition rights	thousand shares 2,306
Outline of dilutive shares which are not included in the calculation of diluted net income per share because they do not have dilutive effect	Stock acquisition rights: 14 types       Number of dilutive shares: 3,020,000 shares

2 Calculation of total net assets per share is based on the following figures.

	(Millions of yen)
	As of September 30, 2010
Total net assets		1,122,876
Amount to be deducted from total net assets:		(5,336	)
Stock acquisition rights		(2,362	)
Non-controlling interests		(2,973	)
Total net assets attributable to common stocks		1,117,540
Number of common stocks used for calculation of total net assets per share		thousand shares 1,660,501

51

(Significant subsequent events)

None.

52

2. Other

(1) Quarterly Consolidated Statements of Income for the Second Quarter Consolidated Accounting Period

The interim audit and the quarterly review of the quarterly consolidated statements of income for the second quarter consolidated accounting period are not carried out, since NKSJ Holdings, Inc. conducts business defined in the provision of Article17-15 Paragraph 2 of the Cabinet Office Ordinance on Disclosure of Corporate Information, etc.

	(Millions of yen)
	Three months ended September 30, 2010 (July 1 to September 30, 2010)
Ordinary income:		666,352
Underwriting income:		641,911
Net premiums written		482,881
Deposits of premiums by policyholders		40,251
Interest and dividend income on deposits of premiums, etc.		14,886
Life insurance premiums written		60,820
Reversal of reserve for outstanding losses and claims		24,641
Reversal of underwriting reserves		16,454
Investment income:		21,750
Interest and dividend income		34,488
Investment gains on money trusts		527
Investment gains on trading securities		35
Gains on sales of securities		3,155
Transfer of interest and dividend income on deposits of premiums, etc.		(14,886	)
Other ordinary income		2,690
Ordinary expenses:		650,829
Underwriting expenses:		529,409
Net claims paid		315,565
Loss adjustment expenses		32,421
Net commissions and brokerage fees		85,743
Maturity refunds to policyholders		96,352
Life insurance claims paid		14,568
Provision for underwriting reserves		(16,475	)
Investment expenses:		12,418
Investment losses on money trusts		82
Losses on sales of securities		853
Impairment losses on securities		1,904
Operating, general and administrative expenses		106,464
Other ordinary expenses:		2,538
Interest paid		1,826
Ordinary profit		15,522
Extraordinary gains:		26
Gains on disposal of fixed assets		26
Extraordinary losses:		1,451
Losses on disposal of fixed assets		193
Impairment losses		625
Provision for reserves under the special laws:		479
Provision for reserve for price fluctuation		479
Other extraordinary losses		153
Income before income taxes and non-controlling interests		14,096
Income taxes		3,515
Income before non-controlling interests		10,581
Non-controlling interests		(112	)
Net income		10,693

Note) The above figures represent amounts deducting amounts of the quarterly consolidated statements of income for the first quarter consolidated accounting period from amounts of the interim consolidated statements of income.

53

(Segment information)

[Segment information]

1 Information related to the amount of sales and net income or loss by each reportable segment

Three months ended September 30, 2010 (July 1 to September 30, 2010)

	(Millions of yen)
	Reportable segments							Others (Note  2)			Total		Adjustment (Note  3)			Carrying amount on the  quarterly consolidated statements of income (Note 4)
	Property and casualty insurance business		Life insurance business			Total
Sales (Note 1)
Sales from transactions with external customers		482,881		60,820			543,701		1,174			544,875		121,477			666,352
Sales arising from internal segment		—		—			—		716			716		(716	)		—
Total		482,881		60,820			543,701		1,890			545,592		120,760			666,352
Net income (loss) attributable to segment		12,574		(1,692	)		10,882		(188	)		10,693		—			10,693

Notes)
1       The definitions of sales are as follows.
Property and casualty insurance business:	Net premiums written
Life insurance business:	Life insurance premiums written
“Others” and carrying amount on the quarterly consolidated statements of income:	Ordinary income
2       “Others” is business segments which are not included in reportable segments. It includes other operations.
3       Adjustments of sales are as follows.
Elimination of transactions arising from internal segment:	(716) million yen
Ordinary income related to property and casualty insurance business and life insurance business excluding net premiums written and life insurance premiums written:	121,477 million yen
4       Net income or loss attributable to segment is adjusted to net income in the quarterly consolidated statements of income.

54

(Per share information)

	Three months ended September 30, 2010 (July 1 to September 30, 2010)
Net income per share—Basic		6.44 yen
Net income per share—Diluted		6.43 yen

Note) Calculation of basic net income per share and diluted net income per share is based on the following figures.

	(Millions of yen)
	Three months ended September 30, 2010 (July 1 to September 30, 2010)
(1) Net income per share—Basic
Net income		10,693
Net income not attributable to common stockholders		—
Net income attributable to common stocks		10,693
Average number of common stocks outstanding		thousand shares 1,660,470
(2) Net income per share—Diluted
Adjustment of net income		—
Increase of common stocks		thousand shares 2,539

55

(2) Other

None.

56

3. Interim Financial Statements (Non-consolidated)

(1) Interim Balance Sheets (Non-consolidated)

		(Millions of yen)
		As of September 30, 2010
Assets:
Current assets:
Cash and bank deposits			2,269
Accounts receivable			240
Total current assets			2,509
Fixed assets:
Tangible fixed assets	*1		275
Investments and other assets:
Investments in subsidiaries and affiliates			878,799
Others			67
Total investments and other assets			878,866
Total fixed assets			879,142
Total assets			881,652
Liabilities:
Current liabilities:
Short-term borrowings			2,200
Income taxes payable			7
Reserve for bonus payments			104
Others			123
Total current liabilities			2,435
Total liabilities			2,435
Net assets:
Shareholders’ equity:
Common stock			100,045
Capital surplus:
Capital reserves			25,045
Other capital surplus			751,814
Total capital surplus			776,859
Retained earnings:
Other retained earnings:
Retained earnings carried forward			476
Total retained earnings			476
Treasury stock			(527	)
Total shareholders’ equity			876,854
Stock acquisition rights			2,362
Total net assets			879,217
Total liabilities and net assets			881,652

57

(2) Interim Statements of Income (Non-consolidated)

��		(Millions of yen)
		Six months ended September 30, 2010 (April 1 to September 30, 2010)
Operating income:
Dividends received from subsidiaries and affiliates			1,200
Fees received from subsidiaries and affiliates			1,223
Total operating income			2,423
Operating expenses:
Operating, general and administrative expenses	*1		1,235
Total operating expenses			1,235
Operating profit			1,187
Non-operating income			0
Non-operating expenses:
Amortization of establishment costs			704
Others			4
Total non-operating expenses			709
Ordinary profit			478
Income before income taxes			478
Income taxes			1
Total income taxes			1
Net income			476

58

(3) Interim Statements of Changes in Net Assets (Non-consolidated)

	(Millions of yen)
	Six months ended September 30, 2010 (April 1 to September 30, 2010)
Shareholders’ equity:
Common stock:
Balance at the beginning of the period		—
Changes during the period
Issuance of new stocks - exercise of stock acquisition rights		45
Increase due to share exchange		100,000
Total changes during the period		100,045
Balance at the end of the period		100,045
Capital surplus:
Capital reserves
Balance at the beginning of the period		—
Changes during the period
Issuance of new stocks - exercise of stock acquisition rights		45
Increase due to share exchange		25,000
Total changes during the period		25,045
Balance at the end of the period		25,045
Other capital surplus:
Balance at the beginning of the period		—
Changes during the period
Disposal of treasury stock		31
Increase due to share exchange		751,782
Total changes during the period		751,814
Balance at the end of the period		751,814
Retained earnings:
Other retained earnings:
Retained earnings carried forward:
Balance at the beginning of the period		—
Changes during the period
Net income		476
Total changes during the period		476
Balance at the end of the period		476
Treasury stock:
Balance at the beginning of the period		—
Changes during the period
Acquisition of treasury stock		(708	)
Disposal of treasury stock		180
Total changes during the period		(527	)
Balance at the end of the period		(527	)
Total shareholders’ equity:
Balance at the beginning of the period		—
Changes during the period
Issuance of new stocks - exercise of stock acquisition rights		91
Net income		476
Acquisition of treasury stock		(708	)
Disposal of treasury stock		212
Increase due to share exchange		876,782
Total changes during the period		876,854
Balance at the end of the period		876,854

59

	(Millions of yen)
	Six months ended September 30, 2010 (April 1 to September 30, 2010)
Stock acquisition rights:
Balance at the beginning of the period		—
Changes during the period
Net changes in items other than shareholders’ equity		2,362
Total changes during the period		2,362
Balance at the end of the period		2,362
Total net assets:
Balance at the beginning of the period		—
Changes during the period
Issuance of new stocks - exercise of stock acquisition rights		91
Net income		476
Acquisition of treasury stock		(708	)
Disposal of treasury stock		212
Increase due to share exchange		876,782
Net changes in items other than shareholders’ equity		2,362
Total changes during the period		879,217
Balance at the end of the period		879,217

60

Significant Accounting Policies for the Preparation of the Interim Financial Statements

	Six months ended September 30, 2010 (April 1 to September 30, 2010)
1       Valuation policies and methods for securities	Stocks of subsidiaries and affiliates are carried at cost based on the moving-average method.
2       Depreciation methods of fixed assets	Depreciation of tangible fixed assets is computed using the declining-balance method, except for buildings (excluding fixtures attached to buildings) on which depreciation is computed using the straight-line method. Useful lives of major tangible fixed assets are as follows.

Buildings:	8 to 38 years
Fixtures and equipment:	4 to 15 years

3       Accounting methods of deferred assets	Establishment costs are expensed in the period incurred.
4       Accounting policies for reserves	In order to provide for employees’ bonus payments, reserve for bonus payments is recorded, based on the estimated amounts to be paid as of the interim balance sheet date.
5       Accounting for consumption taxes	National and local consumption taxes are accounted for using the tax-excluded method.

Additional Information

Six months ended September 30, 2010

(April 1 to September 30, 2010)

(Subsidiaries merged and became a direct subsidiary of NKSJ Holdings, Inc.)

Information is omitted since it is same as “Additional Information (Subsidiaries merged and became a direct subsidiary of NKSJ Holdings, Inc.)” in the interim consolidated financial statements.

61

Notes to the Interim Financial Statements

(Note to the interim balance sheets)

As of September 30, 2010

*1     Accumulated depreciation of tangible fixed assets amounts to 22 million yen.

(Note to the interim statements of income)

Six months ended September 30, 2010

(April 1 to September 30, 2010)

*1     Depreciation expenses

Tangible fixed assets         22 million yen

(Note to the interim statements of changes in net assets)

Six months ended September 30, 2010 (April 1 to September 30, 2010)

Type and number of treasury stock

	Number as of March  31, 2010 (thousand shares)		Increase for the six  months ended September 30, 2010 (thousand shares)		Decrease for the six  months ended September 30, 2010 (thousand shares)		Number as of September 30, 2010 (thousand shares)
Common stock		—		1,214		307		907
Total		—		1,214		307		907

Notes)

1 Breakdown of increase in treasury stock of common stock of 1,214 thousand shares is as follows.

Increase due to acquisition of treasury stock in accordance with approval by board of directors: 1,000 thousand shares

Increase due to purchase of shares less than a full trading unit: 214 thousand shares

2 Breakdown of decrease in treasury stock of common stock of 307 thousand shares is as follows.

Decrease due to disposal of treasury stock related to exercise of stock acquisition rights: 276 thousand shares

Decrease due to sales of shares less than a full trading unit: 30 thousand shares

62

(Securities)

As of September 30, 2010

Since stocks of subsidiaries and affiliates (Carrying amount on the interim balance sheet is 878,799 million yen of stocks of subsidiaries.) do not have the quoted market price and NKSJ Holdings, Inc. considers extremely difficult to figure out the fair value, they are not included in the scope of fair value disclosure.

(Business combinations)

Six months ended September 30, 2010 (April 1 to September 30, 2010)

1 Business integration

Notes for business integration are omitted since they are shown in “Notes to the Interim Consolidated Financial Statements (Business combinations) 1 Business integration” in the interim consolidated financial statements.

63

(Per share information)

	Six months ended September 30, 2010 (April 1 to September  30, 2010)
Total net assets per share		528.06 yen
Net income per share—Basic		0.28 yen
Net income per share—Diluted		0.28 yen

Notes)

1 Calculation of basic net income per share and diluted net income per share is based on the following figures.

	(Millions of yen)
	Six months ended September 30, 2010 (April 1 to September 30, 2010)
Net income per share—Basic
Net income	476
Net income not attributable to common stockholders	—
Net income attributable to common stocks	476
Average number of common stocks outstanding	thousand shares 1,660,781
Net income per share—Diluted
Adjustment of net income	—
Increase of common stocks:	thousand shares 2,306
Stock acquisition rights	thousand shares 2,306
Outline of dilutive shares which are not included in the calculation of diluted net income per share because they do not have dilutive effect	Stock acquisition rights: 14 types       Number of dilutive shares: 3,020,000  shares

2 Calculation of total net assets per share is based on the following figures.

	(Millions of yen)
	As of September 30, 2010
Total net assets		879,217
Amount to be deducted from total net assets:		(2,362	)
Stock acquisition rights		(2,362	)
Total net assets attributable to common stocks		876,854
Number of common stocks used for calculation of total net assets per share		thousand shares 1,660,501

64

(Significant subsequent events)

None.

65

4. Other

None.

66

Part 2: Information on party(ies) providing guaranty to the Reporting Company

(Omitted.)

67

Note Regarding Forward-looking Statements

This document includes “forward-looking statements” that reflect the information in relation to the NKSJ Holdings, Inc. (“NKSJ”). To the extent that statements in this document do not relate to historical or current facts, they constitute forward-looking statements. These forward-looking statements are based on the current assumptions and beliefs of NKSJ in light of the information currently available to NKSJ, and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause the actual results, performance, achievements or financial position of NKSJ, as the case may be, to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. NKSJ does not undertake or will not undertake any obligation to publicly update any forward-looking statements after the date of this document. Investors are advised to consult any further disclosures by NKSJ in their subsequent domestic filings in Japan and filings with, or submissions to, the U.S. Securities Exchange Commission pursuant to the U.S. Securities Exchange Act of 1934.

The risks, uncertainties and other factors referred to above include, but are not limited to, those below. The risks, uncertainties and other factors are also referred to in our domestic Quarterly Securities Reports.

(1) Effects of deterioration of economic and business conditions in Japan

(2) Risk of intensification of competition in the property and casualty insurance business

(3) Changes to laws, regulations, and systems

(4) Natural catastrophe risks related to insurance products

(5) Occurrence of losses exceeding projection

(6) Reinsurance risk

(7) Effects of declining stock price

(8) Effects of fluctuation in interest rate

(9) Credit risk

(10) Effects of fluctuation in foreign exchange rate

(11) Liquidity risk

(12) Life insurance business risks

(13) Overseas business risk

(14) Non-insurance business risk

(15) Credit rating downgrade

(16) Business interruption risk in case of natural disasters, etc.

(17) Information security risk

(18) Reputational risk

(19) System integration risk

(20) Risk of failure to adequately realize business integration synergies

(21) Risks related to merger of life insurance subsidiaries

(22) Other risks

68