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 ofFebruary 2011.

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 nine months ended December 31, 2010

2. [English Translation]

Summary of Consolidated Financial Results for the nine months ended December 31, 2010

(Supplementary Information)

3. [English Summary]

Quarterly Securities Report for the Three Months Ended December 31, 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: February 22, 2011
	By:	/S/    HIROHISA KURUMIDA
		Hirohisa Kurumida
		Manager of Corporate Legal Department

[English Translation]

Summary of Consolidated Financial Results for the nine months ended December 31, 2010

UNOFFICIAL TRANSLATION

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

February 14, 2011

NKSJ Holdings, Inc.

Summary of Consolidated Financial Results for the nine months ended December 31, 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:	February 14, 2011
Scheduled date to start payment of dividends:	———
Supplementary information for quarterly financial statements:	Yes
Schedule for quarterly investor meeting:	None

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

1. Consolidated Financial Results for the nine months ended December 31, 2010 (April 1 to December 31, 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		%
Nine months ended December 31, 2010		2,002,076		—		45,973		—		24,846		—
Nine months ended December 31, 2009		—		—		—		—		—		—

	Net income per share		Diluted net income per share
	yen		yen
Nine months ended December 31, 2010		14.96		14.93
Nine months ended December 31, 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 December 31, 2010		9,022,852		1,168,156		12.9		700.32
As of March 31, 2010		—		—		—		—

Reference) Equity capital:	As of December 31, 2010	1,162,837 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 third 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 third quarter: None

4. Other

Note)   Please refer to “Other Information” on page 2 for details.

(1) Changes in significant subsidiaries during the third quarter: None

Note)   The above shows changes in specified subsidiaries resulting in the change in the scope of consolidation during the third quarter.

(2) Adoption of simplified accounting methods or special accounting methods: Yes

Note)   The above shows adoption of simplified accounting methods or accounting methods used specifically for the preparation of the quarterly consolidated financial statements.

(3) 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 quarterly consolidated financial statements”.

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

 Total shares outstanding including treasury stock:
As of December 31, 2010	1,661,409,178 shares
As of March 31, 2010	— shares
‚ Treasury stock:
As of December 31, 2010	975,828 shares
As of March 31, 2010	— shares
ƒ Average number of shares outstanding:
For the nine months ended December 31, 2010	1,660,680,200 shares
For the nine months ended December 31, 2009	— shares

(Disclosure regarding the execution of the quarterly review process)

This summary is outside the scope of the quarterly review procedure which is required by “Financial Instruments and Exchange Act”, but the review procedure of the quarterly financial statements was completed.

(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 notes for using forecasted information, please refer to “Note Regarding Forward-looking Statements” on page 11.

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 nine months ended December 31, 2009.

Contents

1.	Qualitative Information related to the Consolidated Financial Results for the nine  months ended December 31, 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		2
	(1)	Summary of changes in significant subsidiaries	2
	(2)	Summary of adoption of simplified accounting methods or special accounting methods	2
	(3)	Summary of changes in accounting policies, procedures and methods of presentation	2
3.	Quarterly Consolidated Financial Statements		3
	(1)	Quarterly Consolidated Balance Sheets	3
	(2)	Quarterly Consolidated Statements of Income	4
	(3)	Notes on Going-Concern Assumption	5
	(4)	Notes for Material Changes in Shareholders’ Equity	5
	(5)	Securities	6
	(6)	Derivatives Transactions	7
4.	Supplementary Information		8
	(1)	Summary of Results of Operations	8
	(2)	Premiums Written and Claims Paid by Lines of Business (Consolidated)	9
	(3)	Life Insurance Business (Consolidated)	10
Note Regarding Forward-looking Statements			11

1

1. Qualitative Information related to the Consolidated Financial Results for the nine months ended December 31, 2010

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

The consolidated results of operations for the nine months ended December 31, 2010 are as follows.

1,903.0 billion yen of underwriting income, 91.9 billion yen of investment income and 7.0 billion yen of other ordinary income resulted in 2,002.0 billion yen of ordinary income.

In contrast, 1,602.7 billion yen of underwriting expenses, 30.4 billion yen of investment expenses, 314.2 billion yen of operating, general and administrative expenses and 8.7 billion yen of other ordinary expenses resulted in 1,956.1 billion yen of ordinary expenses.

As a result, ordinary profit amounted to 45.9 billion yen and net income amounted to 24.8 billion yen.

(2) Qualitative information related to the consolidated financial conditions

As of December 31, 2010, the total assets amounted to 9,022.8 billion yen and the total net assets amounted to 1,168.1 billion yen.

(3) Qualitative information related to the consolidated forecasts

There is no change on the consolidated forecasts for the fiscal year ending March 31, 2011 (full fiscal year) as disclosed on November 19, 2010.

2. Other Information

(1) Summary of changes in significant subsidiaries

None.

(2) Summary of adoption of simplified accounting methods or special accounting methods

Income taxes are calculated by applying a reasonably estimated effective tax rate to income before income taxes. The estimated effective tax rate is determined by estimating the effective tax rate after applying deferred tax accounting for the fiscal year, including the third quarter of this fiscal year. When it is remarkably unreasonable to adopt this accounting method, income taxes are calculated by the statutory effective tax rate.

(3) 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.

2

3. Quarterly Consolidated Financial Statements

(1) Quarterly Consolidated Balance Sheets

	(Millions of yen)
	As of December 31, 2010
Assets:
Cash and deposits		234,188
Call loans		64,225
Receivables under resale agreements		64,984
Receivables under securities borrowing transactions		25,502
Monetary receivables bought		34,720
Money trusts		81,392
Securities		6,580,373
Loans		706,428
Tangible fixed assets		361,289
Intangible fixed assets		52,711
Other assets		591,847
Deferred tax assets		231,373
Allowance for possible loan losses		(6,185	)
Total assets		9,022,852
Liabilities:
Underwriting funds:		7,316,385
Reserve for outstanding losses and claims		974,282
Underwriting reserves		6,342,103
Bonds		128,000
Other liabilities		269,447
Reserve for retirement benefits		108,981
Reserve for retirement benefits to directors		129
Reserve for bonus payments		7,446
Reserves under the special laws:		23,325
Reserve for price fluctuation		23,325
Deferred tax liabilities		978
Total liabilities		7,854,696
Net assets:
Shareholders’ equity:
Common stock		100,045
Capital surplus		438,555
Retained earnings		336,104
Treasury stock		(567	)
Total shareholders’ equity		874,137
Valuation and translation adjustments:
Unrealized gains on securities available for sale, net of tax		315,576
Deferred gains on hedges		4,274
Foreign currency translation adjustments		(31,150	)
Total valuation and translation adjustments		288,699
Stock acquisition rights		2,362
Non-controlling interests		2,955
Total net assets		1,168,156
Total liabilities and net assets		9,022,852

3

(2) Quarterly Consolidated Statements of Income

	(Millions of yen)
	Nine months  ended December 31, 2010 (April 1 to December 31, 2010)
Ordinary income:		2,002,076
Underwriting income:		1,903,022
Net premiums written		1,465,475
Deposits of premiums by policyholders		118,276
Interest and dividend income on deposits of premiums, etc.		44,860
Life insurance premiums written		171,436
Reversal of reserve for outstanding losses and claims		59,675
Reversal of underwriting reserves		39,068
Investment income:		91,957
Interest and dividend income		116,534
Investment gains on money trusts		847
Gains on sales of securities		9,396
Transfer of interest and dividend income on deposits of premiums, etc.		(44,860	)
Other ordinary income		7,097
Ordinary expenses:		1,956,103
Underwriting expenses:		1,602,747
Net claims paid		925,954
Loss adjustment expenses		97,439
Net commissions and brokerage fees		265,020
Maturity refunds to policyholders		264,815
Life insurance claims paid		43,872
Investment expenses:		30,422
Investment losses on money trusts		914
Investment losses on trading securities		17
Losses on sales of securities		3,607
Impairment losses on securities		9,854
Operating, general and administrative expenses		314,200
Other ordinary expenses:		8,734
Interest paid		5,403
Ordinary profit		45,973
Extraordinary gains:		2,251
Gains on disposal of fixed assets		316
Gains on negative goodwill		149
Other extraordinary gains		1,785
Extraordinary losses:		7,210
Losses on disposal of fixed assets		493
Impairment losses		662
Provision for reserves under the special laws:		4,832
Provision for reserve for price fluctuation		4,832
Other extraordinary losses		1,222
Income before income taxes and non-controlling interests		41,014
Income taxes and deferred income taxes		16,418
Income before non-controlling interests		24,596
Non-controlling interests		(250	)
Net income		24,846

4

(3) Notes on Going-Concern Assumption

None.

(4) Notes for Material Changes in Shareholders’ Equity

None.

5

(5) Securities

As of December 31, 2010

1. Bonds held to maturity (which have readily determinable fair value)

	(Millions of yen)
	Carrying amount on balance sheet		Fair value		Unrealized gains  (losses)
Domestic bonds		1,109,413		1,164,456		55,043
Foreign securities		62,422		63,158		735
Total		1,171,836		1,227,614		55,778

2. Policy reserve matching bonds (which have readily determinable fair value)

	(Millions of yen)
	Carrying amount on balance sheet		Fair value		Unrealized gains  (losses)
Domestic bonds		14,775		15,248		473
Total		14,775		15,248		473

3. Securities available for sale (which have readily determinable fair value)

	(Millions of yen)
	Cost		Carrying amount on balance sheet		Unrealized gains  (losses)
Domestic bonds		2,431,283		2,500,594		69,310
Domestic stocks		1,135,321		1,609,106		473,784
Foreign securities		1,092,602		1,034,476		(58,126	)
Others		89,625		92,171		2,545
Total		4,748,834		5,236,348		487,513

Notes)

1. 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 quarterly consolidated balance sheet, are included in “Others” above.

2. Impairment losses on securities available for sale which have readily determinable fair value amount to 8,918 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 quarterly balance sheet date, as a rule.

6

(6) Derivatives Transactions

As of December 31, 2010

		(Millions of yen)
Type	Transaction	Notional amount			Fair value			Unrealized gains  (losses)
Currency derivatives	Forward foreign exchanges:
	Short		59,286			1,891			1,891
	Long		16,466			(314	)		(314	)
	Currency options:
	Short		35,823
			87	*		(30	)		57
	Long		33,174
			87	*		143			55
Equity derivatives	Equity index futures:
	Short		5,611			(55	)		(55	)
	Equity index options:
	Short		5,417
			205	*		(1	)		203
	Long		4,400
			205	*		108			(96	)
Bond derivatives	Bond futures:
	Long		1,426			(13	)		(13	)
Others	Credit derivatives:
	Short		9,000			66			66
	Long		2,000			0			0
	Weather derivatives:
	Short		472
			19	*		(10	)		8
	Earthquake derivatives:
	Short		3,960
			119	*		(10	)		109
	Long		3,555
			366	*		125			(241	)
Total			—			1,899			1,672

Notes)

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

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

7

4. Supplementary Information

(1) Summary of Results of Operations

	(Millions of yen)
	Nine months ended December 31, 2010 (April 1 to December 31, 2010)
Ordinary income and expenses:
Underwriting income:		1,903,022
Net premiums written		1,465,475
Deposits of premiums by policyholders		118,276
Life insurance premiums written		171,436
Underwriting expenses:		1,602,747
Net claims paid		925,954
Loss adjustment expenses		97,439
Net commissions and brokerage fees		265,020
Maturity refunds to policyholders		264,815
Life insurance claims paid		43,872
Investment income:		91,957
Interest and dividend income		116,534
Gains on sales of securities		9,396
Investment expenses:		30,422
Losses on sales of securities		3,607
Impairment losses on securities		9,854
Operating, general and administrative expenses		314,200
Other ordinary income and expenses		(1,636	)
Ordinary profit		45,973
Extraordinary gains and losses:
Extraordinary gains		2,251
Extraordinary losses		7,210
Net extraordinary losses		(4,958	)
Income before income taxes and non-controlling interests		41,014
Income taxes and deferred income taxes		16,418
Income before non-controlling interests		24,596
Non-controlling interests		(250	)
Net income		24,846

8

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

Direct premiums written (including deposits of premiums by policyholders)

	(Millions of yen)
	Nine months ended December 31, 2010 (April 1 to December 31, 2010)
Business line	Amount		% of total amount		Rate of change
			%		%
Fire and allied insurance		271,837		16.2		—
Marine insurance		42,804		2.5		—
Personal accident insurance		220,869		13.2		—
Voluntary automobile insurance		738,727		44.0		—
Compulsory automobile liability insurance		190,641		11.4		—
Others		214,201		12.8		—
Total		1,679,082		100.0		—
Deposits of premiums by policyholders		118,276		7.0		—
Net premiums written
	(Millions of yen)
	Nine months ended December 31, 2010 (April 1 to December 31, 2010)
Business line	Amount		% of total amount		Rate of change
			%		%
Fire and allied insurance		179,648		12.3		—
Marine insurance		35,520		2.4		—
Personal accident insurance		139,003		9.5		—
Voluntary automobile insurance		737,863		50.3		—
Compulsory automobile liability insurance		182,733		12.5		—
Others		190,705		13.0		—
Total		1,465,475		100.0		—
Net claims paid
	(Millions of yen)
	Nine months ended December 31, 2010 (April 1 to December 31, 2010)
Business line	Amount		% of total amount		Rate of change
			%		%
Fire and allied insurance		71,574		7.7		—
Marine insurance		17,584		1.9		—
Personal accident insurance		75,729		8.2		—
Voluntary automobile insurance		461,528		49.8		—
Compulsory automobile liability insurance		172,767		18.7		—
Others		126,768		13.7		—
Total		925,954		100.0		—

Note to the above three tables:

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

9

(3) Life Insurance Business (Consolidated)

Life insurance premiums

	(Millions of yen)
	Nine months ended December 31, 2010 (April 1 to December 31, 2010)
	Amount		Rate of change
			%
Life insurance premiums		171,436		—

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

Total amount of policies in force

	(Millions of yen)
	As of  December 31, 2010
	Amount		Rate of change
			%
Individual insurance		16,308,118		—
Individual annuities		278,566		—
Group insurance		3,038,924		—
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)
	Nine months ended December 31, 2010 (April 1 to December 31, 2010)
	Net increase by new policies and conversion		New policies		Net increase by conversion
Individual insurance		2,328,639		2,328,639		—
Individual annuities		10,839		10,839		—
Group insurance		30,068		30,068		—
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)
	Nine months ended December 31, 2010 (April 1 to December 31, 2010)
	Amount		Rate of change
			%
Annualized premiums of new policies		28,068		—

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

10

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

11

[English Translation]

Summary of Consolidated Financial Results for the nine months ended December 31, 2010

(Supplementary Information)

UNOFFICIAL TRANSLATION

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

Summary of Consolidated Financial Results

for the nine months ended December 31, 2010

Supplementary Information

February 14, 2011

NKSJ Holdings, Inc.

(Stock code number : 8630)

Summary of Consolidated Financial Results for the nine months ended December 31, 2010

Supplementary Information Contents

Overview of Business Results of Principal Consolidated Subsidiaries
Sompo Japan Insurance Inc. (Non-consolidated)	2
Quarterly Balance Sheets	2
Quarterly Statements of Income	3
Premiums Written and Claims Paid by Lines of Business	4
Solvency Margin Ratio	5
Exposure to Structured Finance (As of December 31, 2010)	6
NIPPONKOA Insurance Co., Ltd. (Non-consolidated)	9
Quarterly Balance Sheets	9
Quarterly Statements of Income	10
Premiums Written and Claims Paid by Lines of Business	11
Solvency Margin Ratio	12
Investments in the securitized paper and subprime loans (As of December 31, 2010)	13
SONPO 24 Insurance Co., Ltd. (Non-Consolidated)	14
Quarterly Balance Sheets	14
Quarterly Statements of Income	15
Premiums Written and Claims Paid by Lines of Business	16
Solvency Margin Ratio	17
Saison Automobile and Fire Insurance Company, Limited (Non-consolidated)	18
Quarterly Balance Sheets	18
Quarterly Statements of Income	19
Premiums Written and Claims Paid by Lines of Business	20
Solvency Margin Ratio	21
Sompo Japan Himawari Life Insurance Co., Ltd. (Non-consolidated)	22
Quarterly Balance Sheets	22
Quarterly Statements of Income	23
Major Business Results
(Total amount of policies in force, Total amount of new policies, Annualized premiums)	24
Solvency Margin Ratio	25
NIPPONKOA Life Insurance Co., Ltd. (Non-consolidated)	26
Quarterly Balance Sheets	26
Quarterly Statements of Income	27
Major Business Results
(Total amount of policies in force, Total amount of new policies, Annualized premiums)	28
Solvency Margin Ratio	29
Sompo Japan DIY Life Insurance Co., Ltd. (Non-consolidated)	30
Quarterly Balance Sheets	30
Quarterly Statements of Income	31
Major Business Results
(Total amount of policies in force, Total amount of new policies, Annualized premiums)	32
Solvency Margin Ratio	33
Supplementary Explanation	34
Calculation of ratios	34
Solvency margin ratio	34
Note Regarding Forward-looking Statements	35

1

Overview of Business Results of Principal Consolidated Subsidiaries

Sompo Japan Insurance Inc. (Non-consolidated)

Quarterly Balance Sheets

	(Millions of yen)
	As of December 31, 2010			As of March 31, 2010			Increase (Decrease)
	Amount			Amount
Assets:
Cash and deposits		48,404			118,455			(70,051	)
Call loans		53,500			46,800			6,700
Receivables under resale agreements		64,984			61,489			3,494
Monetary receivables bought		31,559			34,585			(3,026	)
Money trusts		3,502			6,773			(3,271	)
Securities		3,454,480			3,525,735			(71,254	)
Loans		467,274			476,173			(8,899	)
Tangible fixed assets		209,905			212,244			(2,338	)
Intangible fixed assets		96			758			(662	)
Other assets		359,722			437,671			(77,948	)
Deferred tax assets		150,889			121,347			29,541
Allowance for possible loan losses		(3,642	)		(5,068	)		1,426
Allowance for possible investment losses		(7,907	)		(7,734	)		(172	)
Total assets		4,832,768			5,029,232			(196,463	)
Liabilities:
Underwriting funds:		3,674,736			3,797,586			(122,849	)
Reserve for outstanding losses and claims		630,548			687,801			(57,252	)
Underwriting reserves		3,044,187			3,109,784			(65,597	)
Bonds		128,000			128,000			—
Other liabilities		162,839			181,855			(19,015	)
Reserve for retirement benefits		81,003			76,741			4,261
Reserve for bonus payments		5,088			13,405			(8,317	)
Reserves under the special laws:		13,821			11,462			2,358
Reserve for price fluctuation		13,821			11,462			2,358
Total liabilities		4,065,489			4,209,051			(143,562	)
Net assets:
Shareholders’ equity:
Common stock		70,000			70,000			—
Capital surplus		24,229			24,229			—
Retained earnings		341,269			338,304			2,965
Total shareholders’ equity		435,499			432,534			2,965
Valuation and translation adjustments:
Unrealized gains on securities available for sale, net of tax		331,779			386,343			(54,563	)
Total valuation and translation adjustments		331,779			386,343			(54,563	)
Stock acquisition rights		—			1,302			(1,302	)
Total net assets		767,279			820,181			(52,901	)
Total liabilities and net assets		4,832,768			5,029,232			(196,463	)

2

Sompo Japan Insurance Inc. (Non-consolidated)

Quarterly Statements of Income

			(Millions of yen)
			Nine months ended December 31, 2009 (April 1 to December 31, 2009)			Nine months ended December 31, 2010 (April 1 to December 31, 2010)			Increase (Decrease)			Rate of change
			Amount			Amount
Ordinary income:				1,246,139			1,250,890			4,751			0.4	%
Underwriting income:				1,191,885			1,199,925			8,040			0.7
Net premiums written				951,167			953,354			2,186			0.2
Deposits of premiums by policyholders				86,824			90,610			3,786			4.4
Interest and dividend income on deposits of premiums, etc.				31,668			29,333			(2,334	)		(7.4	)
Reversal of reserve for outstanding losses and claims				68,586			57,252			(11,334	)		(16.5	)
Reversal of underwriting reserves				52,198			65,597			13,398			25.7
Investment income:				49,818			46,836			(2,981	)		(6.0	)
Interest and dividend income				66,092			62,758			(3,333	)		(5.0	)
Investment gains on money trusts				0			0			0			810.4
Investment gains on trading securities				25			—			(25	)		(100.0	)
Gains on sales of securities				12,538			4,737			(7,801	)		(62.2	)
Transfer of interest and dividend income on deposits of premiums, etc.				(31,668	)		(29,333	)		2,334			—
Other ordinary income				4,435			4,128			(306	)		(6.9	)
Ordinary expenses:				1,218,150			1,211,186			(6,964	)		(0.6	)
Underwriting expenses:				1,011,802			1,016,719			4,917			0.5
Net claims paid				647,426			609,055			(38,370	)		(5.9	)
Loss adjustment expenses				57,887			69,667			11,779			20.3
Net commissions and brokerage fees				160,338			161,168			830			0.5
Maturity refunds to policyholders				138,682			172,814			34,131			24.6
Investment expenses:				25,018			21,935			(3,083	)		(12.3	)
Investment losses on money trusts				1,127			395			(731	)		(64.9	)
Investment losses on trading securities				—			23			23			—
Losses on sales of securities				5,528			2,042			(3,485	)		(63.0	)
Impairment losses on securities				6,642			6,137			(505	)		(7.6	)
Operating, general and administrative expenses				173,990			166,407			(7,583	)		(4.4	)
Other ordinary expenses:				7,338			6,123			(1,214	)		(16.5	)
Interest paid				4,246			5,299			1,053			24.8
Ordinary profit				27,989			39,704			11,715			41.9
Extraordinary gains:				15,857			3,219			(12,637	)		(79.7	)
Gains on disposal of fixed assets				843			131			(712	)		(84.5	)
Other extraordinary gains				15,013			3,088			(11,925	)		(79.4	)
Extraordinary losses:				4,909			3,679			(1,230	)		(25.1	)
Losses on disposal of fixed assets				615			293			(321	)		(52.2	)
Impairment losses				—			259			259			—
Provision for reserves under the special laws:				4,294			2,358			(1,935	)		(45.1	)
Provision for reserve for price fluctuation				4,294			2,358			(1,935	)		(45.1	)
Other extraordinary losses				—			767			767			—
Income before income taxes				38,936			39,245			308			0.8
Income taxes and deferred income taxes				14,784			14,340			(444	)		(3.0	)
Net income				24,152			24,904			752			3.1
Underwriting result:
Net premiums written	(+	)		951,167			953,354			2,186			0.2
Net claims paid	(–	)		647,426			609,055			(38,370	)		(5.9	)
Loss adjustment expenses	(–	)		57,887			69,667			11,779			20.3
Operating expenses:	(–	)		325,436			319,514			(5,921	)		(1.8	)
Net commissions and brokerage fees				160,338			161,168			830			0.5
Operating, general and administrative expenses related to underwriting				165,097			158,346			(6,751	)		(4.1	)
Underwriting result				(79,582	)		(44,883	)		34,699			—
Underwriting profit				13,125			22,416			9,291			70.8
Ratios:
Net loss ratio	(	%)		74.2			71.2			(3.0	)
Net expense ratio	(	%)		34.2			33.5			(0.7	)
Underwriting result ratio	(	%)		(8.4	)		(4.7	)		3.7

3

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)
	Nine months ended December 31, 2009 (April 1 to December 31, 2009)								Nine months ended December 31, 2010 (April 1 to December 31, 2010)
Business line	Amount		% of total amount			Rate of change			Amount		% of total amount			Rate of change
Fire and allied insurance		137,276		13.7	%		(0.8	)%		132,385		13.2	%		(3.6	)%
Marine insurance		21,570		2.2			(24.3	)		23,467		2.3			8.8
Personal accident insurance		97,573		9.7			(1.1	)		98,026		9.7			0.5
Voluntary automobile insurance		482,910		48.2			(2.6	)		480,627		47.8			(0.5	)
Compulsory automobile liability insurance		132,319		13.2			(10.6	)		132,447		13.2			0.1
Others		130,852		13.1			0.4			138,984		13.8			6.2
Total		1,002,501		100.0			(3.6	)		1,005,938		100.0			0.3
Deposits of premiums by policyholders		86,824		—			(22.3	)		90,610		—			4.4
Net premiums written
	(Millions of yen)
	Nine months ended December 31, 2009 (April 1 to December 31, 2009)								Nine months ended December 31, 2010 (April 1 to December 31, 2010)
Business line	Amount		% of total amount			Rate of change			Amount		% of total amount			Rate of change
Fire and allied insurance		107,253		11.3	%		(1.5	)%		106,453		11.2	%		(0.7	)%
Marine insurance		17,924		1.9			(25.4	)		19,081		2.0			6.5
Personal accident insurance		96,435		10.1			(1.1	)		97,453		10.2			1.1
Voluntary automobile insurance		483,336		50.8			(2.2	)		481,165		50.5			(0.4	)
Compulsory automobile liability insurance		123,076		12.9			(12.2	)		125,868		13.2			2.3
Others		123,141		12.9			0.8			123,331		12.9			0.2
Total		951,167		100.0			(3.6	)		953,354		100.0			0.2
Net claims paid
	(Millions of yen)
	Nine months ended December 31, 2009 (April 1 to December 31, 2009)								Nine months ended December 31, 2010 (April 1 to December 31, 2010)
Business line	Amount		Rate of change			Net loss ratio			Amount		Rate of change			Net loss ratio
Fire and allied insurance		46,329		11.3	%		44.7	%		41,589		(10.2	)%		40.8	%
Marine insurance		10,031		(7.0	)		60.6			10,886		8.5			60.8
Personal accident insurance		50,541		0.4			57.6			51,564		2.0			58.4
Voluntary automobile insurance		296,905		(2.0	)		68.7			293,286		(1.2	)		70.6
Compulsory automobile liability insurance		117,742		(3.5	)		104.0			117,996		0.2			101.2
Others		125,875		95.0			106.3			93,731		(25.5	)		80.6
Total		647,426		9.3			74.2			609,055		(5.9	)		71.2

4

Sompo Japan Insurance Inc. (Non-consolidated)

Solvency Margin Ratio

	(Millions of yen)
	As of December 31, 2010			As of March 31, 2010
(A) Total Solvency Margin		1,571,422			1,671,429
Capital and funds, etc.		435,499			414,156
Reserve for price fluctuation		13,821			11,462
Contingency reserve		611			611
Catastrophic loss reserve		481,312			466,702
General allowance for possible loan losses		276			992
Unrealized gains on securities (before tax effect deductions)		464,201			536,605
Net unrealized gains and losses on real estate		30,208			52,252
Excess amount of reserve for maturity refunds		—			—
Subordinated debt, etc.		128,000			128,000
Deductions		157,460			101,616
Others		174,952			162,261
(B) Total Risks		407,089			417,827
Underwriting risk (R1)		83,979			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)		175,548			185,633
Business management risk (R5)		9,265			9,493
Major catastrophe risk (R6)		198,398			199,686
(C) Solvency Margin Ratio
[ (A) / {(B) × 1/2} ] × 100		772.0	%		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). The figures as of December 31, 2010 are partly calculated on the simplified method, for example, some bases for the major catastrophe risk calculation are deemed same as the figures as of September 30, 2010.

5

Exposure to Structured Finance

As of December 31, 2010

February 14, 2011

Summary of Financial Guarantee Insurance

Gains/Losses for the nine months ended December 31, 2010

(Overall financial guarantee)

19.8 billion yen gain

Primarily due to some recovery from the past fiscal year’s loss payment and the reversal of loss reserve for ABS-CDO guarantees.

(Unit: billions of yen)

Overall financial guarantee (Gains/Losses)

Six months ended September 30, 2010

Three months ended December 31, 2010

Nine months ended December 31, 2010

Nine months ended December 31, 2009

Loss Payment (*1) (18.5) (12.1) (30.6) (63.7)

Provision/Reversal of Loss Reserves (*2) 31.1 19.3 50.4 62.3

Gains/Losses 12.6 7.1 19.8(1.3)

*1 Including commutation.

*2 Including 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 12/31/2010

Total of Insured Amount 289.4 218.0 123.1 64.2

Outstanding Loss Reserves (30.0) (139.0) (79.5) (27.1)

Insured Amount Net of Loss Reserves 259.4 78.9 43.5 37.1

6

<Appendix 1> Financial Guarantee Insurance

(As of December 31, 2010, Unit: billions of yen, USD/JPY=81.44)

Gains/Losses for the nine months ended December 31, 2010 (*8)

Categories

Insured Amount

Direct Insurance (*6)

Treaty Reinsurance (*7)

Total

Outstanding Loss Reserves

Insured Amount Net of Loss Reserves

ABS CDOs (backed by pools of asset backed securities) (*1) 63.7 0.4 64.2 27.1 37.1 19.6

CDOs Corporate CDOs (backed by pools of single corporate credits) (*2) 137.7 0.7 138.4 - 138.4 -

CDOs Total 201.4 1.1 202.6 27.1 175.5 19.6

RMBS (*3)

Global RMBS - 9.0 9.0 0.5 8.5(0.2)

Domestic RMBS 32.8 - 32.8 - 32.8 -

RMBS Total 32.8 9.0 41.8 0.5 41.3(0.2)

ABS

CMBS (*4) - - - - - -

Other ABS

Global ABS (*5) 2.7 13.3 16.0 - 16.0 0.5

Domestic ABS 5.4 - 5.4 - 5.4 -

Other ABS Total 8.2 13.3 21.5 - 21.5 0.5

ABS Total 41.0 22.3 63.4 0.5 62.9 -

Public Finance - 144.5 144.5 0.1 144.4 (0.1)

Total 242.5 168.1 410.6 27.7 382.8 19.8

*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. 83% of RMBS are rated investment grade (BBB or above) including AAA ratings for 78%.

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

*5 6% 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 8.2 billion yen of Direct Insurance to cover U.S. monoline guaranteed notes.

*7 “Treaty Reinsurance” is a portfolio-based reinsurance where certain parts of policies underwritten by a primary insurer are ceded automatically to the reinsurer, Sompo Japan, in

accordance with the conditions agreed by the primary insurer and the reinsurer.

*8 Total amount of 19.8 billion yen gain is comprised of 30.6 billion yen of loss payment offset by 52.9 billion yen of reversal of loss reserve and 2.4 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.

<Appendix 2> List of Guarantee for ABS CDOs (Excl. Treaty Reinsurance)

(As of December 31, 2010, Unit: billions of yen, USD/JPY=81.44)

Policy No. (*1)

Issue Rating (*2) (S&P/MDY)

Fiscal Year Issued

Insured Amount (*3)

Sub- ordination Ratio (*4)

Distribution of Underlying Assets Rating

Ratio of Subprime RMBS

Below BBB

AAA

AA

A

BBB

Default (*5)

Guarantee for CDO 1 AA/Caa3 2003 8.1 17% 29% 8% 2% 21% 39% 5.5% 0%

Guarantee for CDO 2 (*6)

AAA/Aa3 2004 4.8 56%

AAA/Aa3 2004 10.0 32%

32% 20% 14% 0% 34% 24.4% 0%

Guarantee for CDO 7 CCC+/C 2006 16.2 9% 2% 13% 7% 5% 73% 0.0% 31%

Guarantee for CDO 11 CC/Caa1 2004 24.4 20% 10% 10% 19% 14% 47% 30.0% -

Total of ABS CDOs 63.7 22% 11% 13% 9% 8% 59% 9.2% -

Insured Amount Net of Loss Reserves 36.6

*1 Previously listed Guarantee for CDO 3,4,5,6,8,9,10 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 January 31, 2011.

*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 CDO2 insures different two classes of the same CDO.

7

<Appendix 3> Summary of Guarantee for Corporate CDOs (Excl. Treaty Reinsurance)

• The total outstanding of insured corporate CDO (direct underwriting) amounted to 137.7 billion yen as of December 31, 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 1.8 years. Approximately 82% of our exposure or 113.3 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 14%.

Issue rating

S&P Rating Moody’s Rating

Baa1 18% A- 18%

AA- 12% A1 12%

AAA 46% Aaa 46%

AA 12% A1 12%

AA+ 12% Aa124%

(Note) Rating distribution by S&P as of January 31, 2011. For transactions without S&P rating, we applied Moody’s rating instead.

(Note) Rating distribution by Moody’s as of January 31, 2011. For transactions without Moody’s rating, we applied S&P’s rating instead.

Run off exposure

(Unit: billions of yen)

450.0 400.0 350.0 300.0 250.0 200.0 150.0 100.0 50.0 0.0

Result Projection

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

(Note) Estimated future exposure was translated at the exchange rate as of December 31, 2010.

<Appendix 4> Structured Finance Exposure in Our Investment Portfolio

(As of December 31, 2010, Unit: billions of yen, USD/JPY=81.44)

Categories Outstanding Balance Gains/Losses for the nine months ended December 31, 2010

Gains/Losses Charged to P/L Unrealized Gains/Losses Total

ABS CDOs (backed by pools of asset backed securities) - - - -

CDOs Corporate CDOs (backed by pools of single corporate credits) (*1) - - - -

CDOs Total - - - -

ABS RMBS (*2)

Global RMBS 1.6 - (0.4) (0.4)

Domestic RMBS 27.5 - 1.1 1.1

RMBS Total 29.2 - 0.6 0.6

CMBS

Global CMBS 0.7 - (0.2) (0.2)

Domestic CMBS 11.3 - (0.3) (0.3)

CMBS Total 12.1 - - (0.5) (0.5)

Other ABS

Global ABS 0.7 - (0.2) (0.2)

Domestic ABS - - - -

Other ABS Total 0.7 - (0.2) (0.2)

ABS Total 42.1 - (0.1) (0.1)

Investment in SIV - - - - -

Leveraged Finance (*3) 0.7 - - -

Total 42.8 - (0.1) (0.1)

Reference: Hedge funds (U.S. subprime loans related exposure) 1.2 Net of the long position and the short position

*1 Excluding public finance CLO.

*2 Excluding RMBS issued by government sponsored enterprises. Most of the RMBS are rated investment grade (BBB or above), and 83% are rated AAA. Exposure to U.S. housing related government-sponsored enterprises (GSEs)’s RMBS and Agency Bonds amounted to 57.9 billion yen (Decreased by 3.3 billion yen since March 31, 2010).

No impairment losses were recognized for the nine months ended December 31, 2010.

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

8

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

Quarterly Balance Sheets

	(Millions of yen)
	As of December 31, 2010			As of March 31, 2010			Increase (Decrease)
	Amount			Amount
Assets:
Cash and deposits		95,111			80,793			14,317
Call loans		10,000			50,000			(40,000	)
Monetary receivables bought		3,161			6,129			(2,967	)
Money trusts		56,333			56,752			(418	)
Securities		1,757,100			1,822,848			(65,748	)
Loans		204,638			227,417			(22,779	)
Tangible fixed assets		127,722			130,437			(2,715	)
Intangible fixed assets		528			534			(6	)
Other assets		164,966			159,263			5,702
Deferred tax assets		74,055			60,392			13,662
Allowance for possible loan losses		(2,122	)		(2,106	)		(16	)
Total assets		2,491,494			2,592,464			(100,969	)
Liabilities:
Underwriting funds:		1,990,867			2,059,290			(68,423	)
Reserve for outstanding losses and claims		265,060			267,872			(2,812	)
Underwriting reserves		1,725,807			1,791,418			(65,610	)
Other liabilities		56,364			65,184			(8,820	)
Reserve for retirement benefits		24,220			22,583			1,636
Reserve for bonus payments		1,619			6,078			(4,458	)
Reserve for bonus payments to directors		—			41			(41	)
Reserves under the special laws:		7,931			5,643			2,288
Reserve for price fluctuation		7,931			5,643			2,288
Total liabilities		2,081,002			2,158,821			(77,819	)
Net assets:
Shareholders’ equity:
Common stock		91,249			91,249			—
Capital surplus		46,702			46,702			—
Retained earnings		119,735			117,202			2,533
Total shareholders’ equity		257,686			255,153			2,533
Valuation and translation adjustments:
Unrealized gains on securities available for sale, net of tax		148,531			175,808			(27,276	)
Deferred gains on hedges		4,274			2,115			2,158
Total valuation and translation adjustments		152,806			177,924			(25,118	)
Stock acquisition rights		—			565			(565	)
Total net assets		410,492			433,642			(23,150	)
Total liabilities and net assets		2,491,494			2,592,464			(100,969	)

9

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

Quarterly Statements of Income

		(Millions of yen)
		Nine months ended December 31, 2009 (April 1 to December 31, 2009)			Nine months ended December 31, 2010 (April 1 to December 31, 2010)			Increase (Decrease)			Rate of change
		Amount			Amount
Ordinary income:			640,987			614,517			(26,470	)		(4.1	)%
Underwriting income:			608,294			582,868			(25,425	)		(4.2	)
Net premiums written			480,629			471,742			(8,887	)		(1.8	)
Deposits of premiums by policyholders			29,725			27,187			(2,537	)		(8.5	)
Interest and dividend income on deposits of premiums, etc.			17,284			15,480			(1,804	)		(10.4	)
Reversal of reserve for outstanding losses and claims			2,986			2,812			(174	)		(5.8	)
Reversal of underwriting reserves			77,408			65,610			(11,797	)		(15.2	)
Investment income:			31,660			30,534			(1,126	)		(3.6	)
Interest and dividend income			35,617			33,706			(1,911	)		(5.4	)
Investment gains on money trusts			1,746			453			(1,292	)		(74.0	)
Gains on sales of securities			8,205			10,260			2,055			25.0
Transfer of interest and dividend income on deposits of premiums, etc.			(17,284	)		(15,480	)		1,804			—
Other ordinary income			1,033			1,114			80			7.8
Ordinary expenses:			618,764			597,882			(20,881	)		(3.4	)
Underwriting expenses:			514,789			494,286			(20,503	)		(4.0	)
Net claims paid			300,424			296,235			(4,188	)		(1.4	)
Loss adjustment expenses			26,440			26,193			(246	)		(0.9	)
Net commissions and brokerage fees			81,706			79,295			(2,410	)		(2.9	)
Maturity refunds to policyholders			105,924			91,154			(14,769	)		(13.9	)
Investment expenses:			9,864			10,411			546			5.5
Investment losses on money trusts			196			513			317			161.8
Losses on sales of securities			2,831			4,888			2,057			72.7
Impairment losses on securities			2,846			2,334			(511	)		(18.0	)
Operating, general and administrative expenses			93,518			92,306			(1,211	)		(1.3	)
Other ordinary expenses:			591			878			287			48.6
Interest paid			38			26			(11	)		(30.4	)
Ordinary profit			22,223			16,634			(5,588	)		(25.1	)
Extraordinary gains:			398			746			347			87.2
Gains on disposal of fixed assets			398			181			(217	)		(54.5	)
Other extraordinary gains			—			565			565			—
Extraordinary losses:			4,721			3,031			(1,690	)		(35.8	)
Losses on disposal of fixed assets			323			178			(144	)		(44.8	)
Impairment losses			68			402			334			489.5
Provision for reserves under the special laws:			1,922			2,288			365			19.0
Provision for reserve for price fluctuation			1,922			2,288			365			19.0
Other extraordinary losses			2,407			162			(2,245	)		(93.3	)
Income before income taxes			17,900			14,349			(3,551	)		(19.8	)
Income taxes and deferred income taxes			4,666			4,522			(144	)		(3.1	)
Net income			13,234			9,827			(3,406	)		(25.7	)
Underwriting result:
Net premiums written	(+)		480,629			471,742			(8,887	)		(1.8	)
Net claims paid	(–)		300,424			296,235			(4,188	)		(1.4	)
Loss adjustment expenses	(–)		26,440			26,193			(246	)		(0.9	)
Operating expenses:	(–)		170,584			167,080			(3,504	)		(2.1	)
Net commissions and brokerage fees			81,706			79,295			(2,410	)		(2.9	)
Operating, general and administrative expenses related to underwriting			88,878			87,784			(1,094	)		(1.2	)
Underwriting result			(16,819	)		(17,766	)		(946	)		—
Underwriting profit			3,123			(111	)		(3,234	)		(103.6	)
Ratios:
Net loss ratio	(%)		68.0			68.3			0.3
Net expense ratio	(%)		35.5			35.4			(0.1	)
Underwriting result ratio	(%)		(3.5	)		(3.8	)		(0.3	)

10

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)
	Nine months ended December 31, 2009 (April 1 to December 31, 2009)								Nine months ended December 31, 2010 (April 1 to December 31, 2010)
Business line	Amount		% of total amount			Rate of change			Amount		% of total amount			Rate of change
Fire and allied insurance		92,746		18.3	%		2.2	%		87,976		17.6	%		(5.1	)%
Marine insurance		10,394		2.0			(26.2	)		11,118		2.2			7.0
Personal accident insurance		38,965		7.7			(5.3	)		38,202		7.7			(2.0	)
Voluntary automobile insurance		241,312		47.5			(1.8	)		237,367		47.7			(1.6	)
Compulsory automobile liability insurance		57,851		11.4			(10.0	)		57,982		11.6			0.2
Others		66,301		13.1			(2.9	)		66,061		13.2			(0.4	)
Total		507,572		100.0			(3.2	)		498,709		100.0			(1.7	)
Deposits of premiums by policyholders		29,725		—			(31.2	)		27,187		—			(8.5	)
Net premiums written
	(Millions of yen)
	Nine months ended December 31, 2009 (April 1 to December 31, 2009)								Nine months ended December 31, 2010 (April 1 to December 31, 2010)
Business line	Amount		% of total amount			Rate of change			Amount		% of  total amount			Rate of change
Fire and allied insurance		72,065		15.0	%		2.1	%		66,796		14.2	%		(7.3	)%
Marine insurance		9,975		2.1			(24.6	)		10,469		2.2			5.0
Personal accident insurance		39,490		8.2			(4.7	)		38,953		8.3			(1.4	)
Voluntary automobile insurance		240,997		50.1			(1.8	)		237,248		50.2			(1.6	)
Compulsory automobile liability insurance		55,530		11.6			(12.0	)		56,388		12.0			1.5
Others		62,569		13.0			(2.5	)		61,886		13.1			(1.1	)
Total		480,629		100.0			(3.5	)		471,742		100.0			(1.8	)
Net claims paid
	(Millions of yen)
	Nine months ended December 31, 2009 (April 1 to December 31, 2009)								Nine months ended December 31, 2010 (April 1 to December 31, 2010)
Business line	Amount		Rate of change			Net loss ratio			Amount		Rate of change			Net loss ratio
Fire and allied insurance		32,511		9.5	%		48.9	%		28,445		(12.5	)%		46.3	%
Marine insurance		6,172		26.3			64.2			4,281		(30.6	)		42.8
Personal accident insurance		23,184		(5.2	)		64.2			22,744		(1.9	)		63.6
Voluntary automobile insurance		151,652		1.8			69.0			156,192		3.0			72.2
Compulsory automobile liability insurance		53,956		(3.6	)		102.7			54,302		0.6			101.8
Others		32,947		(7.4	)		58.4			30,269		(8.1	)		54.2
Total		300,424		0.3			68.0			296,235		(1.4	)		68.3

11

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

Solvency Margin Ratio

	(Millions of yen)
	As of December 31, 2010			As of March 31, 2010
(A) Total Solvency Margin		817,729			840,210
Capital and funds, etc.		257,686			249,698
Reserve for price fluctuation		7,931			5,643
Contingency reserve		12			12
Catastrophic loss reserve		287,027			285,675
General allowance for possible loan losses		151			40
Unrealized gains on securities (before tax effect deductions)		204,188			242,132
Net unrealized gains and losses on real estate		23,153			24,275
Excess amount of reserve for maturity refunds		—			—
Subordinated debt, etc.		—			—
Deductions		13,269			13,269
Others		50,848			46,002
(B) Total Risks		230,656			226,293
Underwriting risk(R1)		39,278			39,271
Underwriting risk for third-sector insurance products including accident, sickness and nursing-care insurance (R2)		1			1
Guaranteed interest rate risk(R3)		3,039			3,088
Investment risk(R4)		80,213			85,444
Business management risk(R5)		5,120			7,492
Major catastrophe risk(R6)		133,481			121,948
(C) Solvency Margin Ratio
[ (A) / {(B) × 1/2} ] × 100		709.0	%		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). The figures as of December 31, 2010 are partly calculated on the simplified method, for example, some bases for the major catastrophe risk calculation are deemed same as the figures as of September 30, 2010.

12

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

Investments in the securitized paper and subprime loans (As of December 31, 2010)

Investments by NIPPONKOA in the securitized paper, as of December 31, 2010, are as follows.

1. SPEs ( Special Purpose Entities)

None.

2. CDOs (Collateralized Debt Obligations)

	(Billions of yen)
	As of December 31, 2010						(Reference) As of March 31, 2010
	Fair value		Unrealized gains or losses		Impairment losses		Fair value		Unrealized gains or losses		Impairment losses
CDOs		7.6		0.1		—		7.8		0.1		—
Rated		7.2		—		—		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, 14% is rated AAA, 73% is rated A and 13% is rated BB.

(3) All of the underlying collateral pools 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 0.9 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 December 31, 2010							(Reference) As of March 31, 2010
	Fair value		Unrealized gains or losses			Impairment losses		Fair value		Unrealized gains or losses			Impairment losses
CMBS		5.2		(0.2	)		—		8.8		(0.3	)		(0.1	)
Domestic		5.2		(0.2	)		—		8.8		(0.3	)		(0.1	)
Overseas		—		—			—		—		—			—

(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 note, which was supported by asset pool of number of underlying debt securities and loans.

• Alt-A: A type of the U.S. mortgage loan. 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).

13

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

Quarterly Balance Sheets

	(Millions of yen)
	As of December 31, 2010			As of March 31, 2010			Increase (Decrease)
	Amount			Amount
Assets:
Cash and deposits		1,872			1,851			20
Securities		15,987			15,618			369
Tangible fixed assets		153			182			(28	)
Other assets		683			810			(127	)
Total assets		18,696			18,463			233
Liabilities:
Underwriting funds:		9,001			8,538			463
Reserve for outstanding losses and claims		2,493			2,333			159
Underwriting reserves		6,508			6,204			303
Other liabilities		1,233			1,443			(210	)
Reserve for retirement benefits		97			79			18
Reserve for bonus payments		20			92			(72	)
Reserves under the special laws:		22			20			2
Reserve for price fluctuation		22			20			2
Deferred tax liabilities		—			18			(18	)
Total liabilities		10,376			10,193			182
Net assets:
Shareholders’ equity:
Common stock		19,000			19,000			—
Capital surplus		19,000			19,000			—
Retained earnings		(29,634	)		(29,763	)		129
Total shareholders’ equity		8,365			8,236			129
Valuation and translation adjustments:
Unrealized gains (losses) on securities available for sale, net of tax		(45	)		32			(78	)
Total valuation and translation adjustments		(45	)		32			(78	)
Total net assets		8,320			8,269			50
Total liabilities and net assets		18,696			18,463			233

14

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

Quarterly Statements of Income

			(Millions of yen)
			Nine months ended December 31, 2009 (April 1 to December  31, 2009)			Nine months ended December 31, 2010 (April 1 to December 31, 2010)			Increase (Decrease)			Rate of change
			Amount			Amount
Ordinary income:				7,506			8,370			864			11.5	%
Underwriting income:				7,436			8,040			603			8.1
Net premiums written				7,428			8,033			605			8.1
Interest and dividend income on deposits of premiums, etc.				8			6			(1	)		(16.5	)
Investment income:				69			330			260			373.9
Interest and dividend income				77			63			(14	)		(18.7	)
Gains on sales of securities				—			273			273			—
Transfer of interest and dividend income on deposits of premiums, etc.				(8	)		(6	)		1			—
Other ordinary income				0			0			(0	)		(2.0	)
Ordinary expenses:				7,612			8,235			622			8.2
Underwriting expenses:				5,518			6,313			794			14.4
Net claims paid				4,019			4,854			834			20.8
Loss adjustment expenses				461			477			15			3.4
Net commissions and brokerage fees				483			518			35			7.3
Provision for reserve for outstanding losses and claims				32			159			127			393.9
Provision for underwriting reserves				521			303			(218	)		(41.8	)
Operating, general and administrative expenses				2,094			1,921			(172	)		(8.2	)
Other ordinary expenses				0			0			(0	)		(73.3	)
Ordinary profit (loss)				(106	)		135			241			—
Extraordinary losses:				5			3			(2	)		(37.8	)
Losses on disposal of fixed assets				0			1			0			102.7
Provision for reserves under the special laws:				2			2			0			2.9
Provision for reserve for price fluctuation				2			2			0			2.9
Other extraordinary losses				2			—			(2	)		(100.0	)
Income (loss) before income taxes				(111	)		132			243			—
Income taxes and deferred income taxes				2			2			—			—
Net income (loss)				(114	)		129			243			—
Underwriting result:
Net premiums written	(+	)		7,428			8,033			605			8.1
Net claims paid	(–	)		4,019			4,854			834			20.8
Loss adjustment expenses	(–	)		461			477			15			3.4
Operating expenses:	(–	)		2,577			2,438			(139	)		(5.4	)
Net commissions and brokerage fees				483			518			35			7.3
Operating, general and administrative expenses related to underwriting				2,094			1,919			(174	)		(8.3	)
Underwriting result				370			264			(106	)		(28.6	)
Underwriting profit				(175	)		(192	)		(16	)		—
Ratios:
Net loss ratio	(%	)		60.3			66.4			6.1
Net expense ratio	(%	)		34.7			30.3			(4.4	)
Underwriting result ratio	(%	)		5.0			3.3			(1.7	)

15

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)
	Nine months ended December 31, 2009 (April 1 to December 31, 2009)								Nine months ended December 31, 2010 (April 1 to December 31, 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		7,367		100.0			15.0			7,973		100.0			8.2
Compulsory automobile liability insurance		—		—			—			—		—			—
Others		—		—			—			—		—			—
Total		7,367		100.0			15.0			7,973		100.0			8.2
Deposits of premiums by policyholders		—		—			—			—		—			—

Net premiums written

	(Millions of yen)
	Nine months ended December 31, 2009 (April 1 to December 31, 2009)								Nine months ended December 31, 2010 (April 1 to December 31, 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		7,305		98.3			15.1			7,907		98.4			8.2
Compulsory automobile liability insurance		123		1.7			(1.5	)		126		1.6			2.7
Others		—		—			—			—		—			—
Total		7,428		100.0			14.8			8,033		100.0			8.1

Net claims paid

	(Millions of yen)
	Nine months ended December 31, 2009 (April 1 to December 31, 2009)								Nine months ended December 31, 2010 (April 1 to December 31, 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		3,882		7.4			59.5			4,699		21.0			65.5
Compulsory automobile liability insurance		137		7.4			111.2			155		13.1			122.5
Others		—		—			—			—		—			—
Total		4,019		7.4			60.3			4,854		20.8			66.4

16

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

Solvency Margin Ratio

	(Millions of yen)
	As of December 31, 2010			As of March 31, 2010
(A) Total Solvency Margin		8,596			8,616
Capital and funds, etc.		8,365			8,236
Reserve for price fluctuation		22			20
Contingency reserve		—			—
Catastrophic loss reserve		253			312
General allowance for possible loan losses		—			—
Unrealized gains (losses) on securities (before tax effect deductions)		(45	)		46
Net unrealized gains and losses on real estate		—			—
Excess amount of reserve for maturity refunds		—			—
Subordinated debt, etc.		—			—
Deductions		—			—
Others		—			—
(B) Total Risks		945			895
Underwriting risk (R1)		792			734
Underwriting risk for third-sector insurance products including accident, sickness and nursing-care insurance (R2)		—			—
Guaranteed interest rate risk (R3)		—			—
Investment risk (R4)		156			193
Business management risk (R5)		31			30
Major catastrophe risk (R6)		105			104
(C) Solvency Margin Ratio
[ (A) / {(B) × 1/2} ] × 100		1,818.3	%		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). The figures as of December 31, 2010 are partly calculated on the simplified method, for example, some bases for the investment risk calculation are deemed same as the figures as of September 30, 2010.

17

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

Quarterly Balance Sheets

	(Millions of yen)
	As of December 31, 2010			As of March 31, 2010			Increase (Decrease)
	Amount			Amount
Assets:
Cash and deposits		4,505			10,796			(6,290	)
Money trusts		1,311			1,316			(4	)
Securities		23,673			19,223			4,450
Loans		15			20			(4	)
Tangible fixed assets		446			171			274
Intangible fixed assets		1,739			897			842
Other assets		2,058			1,917			141
Allowance for possible loan losses		(0	)		(0	)		—
Total assets		33,751			34,342			(591	)
Liabilities:
Underwriting funds:		20,076			19,359			716
Reserve for outstanding losses and claims		4,870			4,946			(76	)
Underwriting reserves		15,206			14,413			793
Other liabilities		1,648			1,431			216
Reserve for retirement benefits		247			364			(116	)
Reserve for retirement benefits to directors		40			34			5
Reserve for bonus payments		108			206			(97	)
Reserves under the special laws:		6			14			(8	)
Reserve for price fluctuation		6			14			(8	)
Deferred tax liabilities		113			100			13
Total liabilities		22,241			21,510			730
Net assets:
Shareholders’ equity:
Common stock		8,610			8,610			—
Capital surplus		6,848			6,848			—
Retained earnings		(4,247	)		(2,925	)		(1,322	)
Total shareholders’ equity		11,210			12,532			(1,322	)
Valuation and translation adjustments:
Unrealized gains on securities available for sale, net of tax		299			299			0
Total valuation and translation adjustments		299			299			0
Total net assets		11,509			12,831			(1,322	)
Total liabilities and net assets		33,751			34,342			(591	)

18

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

Quarterly Statements of Income

		(Millions of yen)
		Nine months ended December 31, 2009 (April 1 to December 31, 2009)			Nine months ended December 31, 2010 (April 1 to December 31, 2010)			Increase (Decrease)			Rate of change
		Amount			Amount
Ordinary income:			12,083			12,076			(6	)		(0.1	)%
Underwriting income:			11,631			11,620			(10	)		(0.1	)
Net premiums written			10,402			11,026			624			6.0
Deposits of premiums by policyholders			571			478			(93	)		(16.3	)
Interest and dividend income on deposits of premiums, etc.			46			40			(6	)		(14.2	)
Reversal of reserve for outstanding losses and claims			611			76			(534	)		(87.5	)
Investment income:			292			299			6			2.2
Interest and dividend income			236			230			(6	)		(2.7	)
Investment gains on money trusts			46			—			(46	)		(100.0	)
Investment gains on trading securities			2			1			(1	)		(38.8	)
Gains on sales of securities			53			106			52			98.1
Transfer of interest and dividend income on deposits of premiums, etc.			(46	)		(40	)		6			—
Other ordinary income			159			156			(2	)		(1.5	)
Ordinary expenses:			12,146			13,389			1,242			10.2
Underwriting expenses:			8,713			9,396			682			7.8
Net claims paid			5,683			5,681			(2	)		(0.0	)
Loss adjustment expenses			639			734			94			14.8
Net commissions and brokerage fees			1,326			1,335			9			0.7
Maturity refunds to policyholders			744			846			102			13.7
Provision for underwriting reserves			314			793			478			152.3
Investment expenses:			105			151			46			44.4
Investment losses on money trusts			—			4			4			—
Losses on sales of securities			76			54			(22	)		(29.5	)
Operating, general and administrative expenses			3,259			3,832			573			17.6
Other ordinary expenses:			68			8			(59	)		(87.3	)
Interest paid			3			6			2			76.6
Ordinary loss			(63	)		(1,312	)		(1,249	)		—
Extraordinary gains:			—			8			8			—
Reversal of reserves under the special laws:			—			8			8			—
Reversal of reserve for price fluctuation			—			8			8			—
Extraordinary losses:			0			2			1			180.6
Losses on disposal of fixed assets			0			2			1			691.4
Impairment losses			0			—			(0	)		(100.0	)
Provision for reserves under the special laws:			0			—			(0	)		(100.0	)
Provision for reserve for price fluctuation			0			—			(0	)		(100.0	)
Loss before income taxes			(64	)		(1,306	)		(1,242	)		—
Income taxes and deferred income taxes			16			16			—			—
Net loss			(80	)		(1,322	)		(1,242	)		—
Underwriting result:
Net premiums written	(+)		10,402			11,026			624			6.0
Net claims paid	(–)		5,683			5,681			(2	)		(0.0	)
Loss adjustment expenses	(–)		639			734			94			14.8
Operating expenses:	(–)		4,366			4,956			589			13.5
Net commissions and brokerage fees			1,326			1,335			9			0.7
Operating, general and administrative expenses related to underwriting			3,040			3,620			580			19.1
Underwriting result			(287	)		(345	)		(57	)		—
Underwriting profit			(77	)		(1,355	)		(1,278	)		—
Ratios:
Net loss ratio (%)			60.8			58.2			(2.6	)
Net expense ratio (%)			42.0			44.9			2.9
Underwriting result ratio (%)			(2.8	)		(3.1	)		(0.3	)

19

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)
	Nine months ended December 31, 2009 (April 1 to December 31, 2009)								Nine months ended December 31, 2010 (April 1 to December 31, 2010)
Business line	Amount		% of total amount			Rate of change			Amount		% of total amount			Rate of change
Fire and allied insurance		1,754		14.8	%		81.6	%		2,598		20.3	%		48.2	%
Marine insurance		1		0.0			14.0			0		0.0			(48.3	)
Personal accident insurance		2,882		24.3			24.8			3,275		25.5			13.6
Voluntary automobile insurance		6,372		53.7			(4.7	)		6,100		47.6			(4.3	)
Compulsory automobile liability insurance		235		2.0			(14.2	)		211		1.7			(10.0	)
Others		609		5.1			(5.7	)		637		5.0			4.6
Total		11,855		100.0			8.9			12,825		100.0			8.2
Deposits of premiums by policyholders		571		—			(2.7	)		478		—			(16.3	)

Net premiums written

	(Millions of yen)
	Nine months ended December 31, 2009 (April 1 to December 31, 2009)								Nine months ended December 31, 2010 (April 1 to December 31, 2010)
Business line	Amount		% of total amount			Rate of change			Amount		% of total amount			Rate of change
Fire and allied insurance		1,252		12.0	%		86.2	%		1,931		17.5	%		54.2	%
Marine insurance		22		0.2			(39.2	)		16		0.2			(25.3	)
Personal accident insurance		1,906		18.3			10.8			2,064		18.7			8.2
Voluntary automobile insurance		6,324		60.8			(4.7	)		6,054		54.9			(4.3	)
Compulsory automobile liability insurance		311		3.0			(7.7	)		349		3.2			12.1
Others		583		5.6			(6.3	)		610		5.5			4.6
Total		10,402		100.0			3.7			11,026		100.0			6.0

Net claims paid

	(Millions of yen)
	Nine months ended December 31, 2009 (April 1 to December 31, 2009)								Nine months ended December 31, 2010 (April 1 to December 31, 2010)
Business line	Amount		Rate of change			Net loss ratio			Amount		Rate of change			Net loss ratio
Fire and allied insurance		133		(33.5	)%		11.9	%		190		42.3	%		11.0	%
Marine insurance		14		(29.9	)		65.7			13		(7.8	)		80.0
Personal accident insurance		1,059		8.9			61.5			1,204		13.8			65.8
Voluntary automobile insurance		4,064		5.0			71.7			3,859		(5.1	)		72.3
Compulsory automobile liability insurance		297		(3.6	)		102.9			313		5.3			95.7
Others		114		(17.9	)		22.3			100		(12.3	)		20.2
Total		5,683		3.1			60.8			5,681		(0.0	)		58.2

20

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

Solvency Margin Ratio

	(Millions of yen)
	As of December 31, 2010			As of March 31, 2010
(A) Total Solvency Margin		13,034			15,333
Capital and funds, etc.		9,493			11,658
Reserve for price fluctuation		6			14
Contingency reserve		8			8
Catastrophic loss reserve		3,152			3,291
General allowance for possible loan losses		0			0
Unrealized gains on securities (before tax effect deductions)		371			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		1,657			1,653
Underwriting risk (R1)		839			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)		510			530
Business management risk (R5)		59			59
Major catastrophe risk (R6)		612			598
(C) Solvency Margin Ratio		1,572.6	%		1,854.7	%
[ (A) / {(B) × 1/2} ] × 100

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). The figures as of December 31, 2010 are partly calculated on the simplified method, for example, some bases for the major catastrophe risk calculation are deemed same as the figures as of September 30, 2010.

21

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

Quarterly Balance Sheets

	(Millions of yen)
	As of December 31, 2010			As of March 31, 2010			Increase (Decrease)
	Amount			Amount
Assets:
Cash and deposits		21,129			32,988			(11,858	)
Securities:		1,083,772			1,030,306			53,466
Government bonds		638,741			560,887			77,853
Municipal bonds		69,338			70,489			(1,150	)
Corporate bonds		311,611			310,212			1,398
Domestic stocks		5,070			5,140			(70	)
Foreign securities		59,011			83,576			(24,564	)
Loans:		17,482			17,162			319
Policy loans		17,482			17,162			319
Tangible fixed assets		1,165			1,197			(32	)
Intangible fixed assets		4,367			4,625			(258	)
Agency accounts receivable		147			174			(26	)
Reinsurance accounts receivable		736			1,206			(470	)
Other assets		23,657			21,401			2,255
Deferred tax assets		13,117			13,164			(47	)
Allowance for possible loan losses		(36	)		(94	)		58
Total assets		1,165,539			1,122,133			43,405
Liabilities:
Policy reserves:		1,102,184			1,054,852			47,331
Reserve for outstanding claims		20,316			20,155			160
Policy reserves		1,079,744			1,032,371			47,373
Reserve for dividends to policyholders		2,123			2,325			(202	)
Agency accounts payable		1,391			1,591			(199	)
Reinsurance accounts payable		995			1,205			(210	)
Other liabilities		4,237			7,564			(3,326	)
Reserve for retirement benefits		876			663			213
Reserve for retirement benefits to directors		76			45			31
Reserves under the special laws:		919			794			125
Reserve for price fluctuation		919			794			125
Total liabilities		1,110,682			1,066,716			43,965
Net assets:
Shareholders’ equity:
Common stock		17,250			17,250			—
Capital surplus		10,000			10,000			—
Retained earnings		25,500			27,283			(1,783	)
Total shareholders’ equity		52,750			54,533			(1,783	)
Valuation and translation adjustments:
Unrealized gains on securities available for sale, net of tax		2,106			882			1,223
Total valuation and translation adjustments		2,106			882			1,223
Total net assets		54,856			55,416			(559	)
Total liabilities and net assets		1,165,539			1,122,133			43,405

22

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

Quarterly Statements of Income

	(Millions of yen)
	Nine months ended December 31, 2009 (April 1 to December 31, 2009)		Nine months ended December 31, 2010 (April 1 to December 31, 2010)			Increase (Decrease)			Rate of change
	Amount		Amount
Ordinary income:		185,354		196,123			10,768			5.8	%
Insurance premiums and other:		169,081		181,278			12,197			7.2
Insurance premiums		167,055		179,259			12,203			7.3
Investment income:		16,194		14,709			(1,484	)		(9.2	)
Interest and dividend income		13,540		14,235			695			5.1
Gains on sales of securities		1,080		474			(606	)		(56.1	)
Investment gains on special account		1,573		—			(1,573	)		(100.0	)
Other ordinary income		79		135			55			70.4
Ordinary expenses:		183,789		196,816			13,026			7.1
Insurance claims and other:		112,763		102,917			(9,845	)		(8.7	)
Insurance claims		16,363		16,083			(280	)		(1.7	)
Annuity payments		609		742			132			21.7
Insurance benefits		16,499		18,007			1,508			9.1
Surrender benefits		74,900		64,051			(10,849	)		(14.5	)
Other refunds		886		709			(177	)		(20.0	)
Provision for policy reserves and other:		27,294		47,534			20,240			74.2
Provision for reserve for outstanding claims		1,856		160			(1,695	)		(91.3	)
Provision for policy reserves		25,438		47,373			21,935			86.2
Provision for interest portion of reserve for dividends to policyholders		0		0			0			72.7
Investment expenses:		1,118		773			(345	)		(30.9	)
Interest paid		26		43			17			65.0
Losses on sales of securities		—		175			175			—
Impairment losses on securities		718		—			(718	)		(100.0	)
Losses on derivatives		318		24			(293	)		(92.2	)
Investment losses on special account		—		493			493			—
Operating, general and administrative expenses		41,441		43,649			2,208			5.3
Other ordinary expenses		1,171		1,940			769			65.7
Ordinary profit (loss)		1,565		(692	)		(2,257	)		(144.3	)
Extraordinary gains:		0		4			4			3,869.5
Other extraordinary gains		0		4			4			3,869.5
Extraordinary losses:		94		480			386			409.8
Losses on disposal of fixed assets		7		15			7			111.6
Provision for reserves under the special laws:		87		125			38			44.0
Provision for reserve for price fluctuation		87		125			38			44.0
Other extraordinary losses		—		339			339			—
Provision for reserve for dividends to policyholders		1,107		1,194			86			7.8
Income (loss) before income taxes		363		(2,362	)		(2,725	)		(750.5	)
Income taxes and deferred income taxes		325		(579	)		(904	)		(278.2	)
Net income (loss)		38		(1,783	)		(1,821	)		(4,784.8	)

23

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

Major Business Results

Total amount of policies in force

	(Number in thousands, Yen in hundred millions, %)
	As of December 31, 2010								As of March 31, 2010
	Number				Amount				Number				Amount
			Rate of change				Rate of change				Rate of change				Rate of change
Individual insurance		1,871		108.1		112,761		108.4		1,732		109.9		104,049		110.1
Individual annuities		15		99.5		798		99.5		15		98.2		801		98.5
Group insurance		—		—		18,671		101.6		—		—		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, %)
	Nine months ended December 31, 2009 (April 1 to December 31, 2009)								Nine months ended December 31, 2010 (April 1 to December 31, 2010)
	Number				Amount				Number				Amount
			Rate of change				Rate of change				Rate of change				Rate of change
Individual insurance		228		133.5		15,636		132.8		247		108.5		16,869		107.9
Individual annuities		0		105.6		15		96.7		0		114.9		16		105.9
Group insurance		—		—		425		651.7		—		—		171		40.2
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 December 31, 2010				As of March 31, 2010
			Rate of change				Rate of change
Individual insurance		195,707		101.5		192,742		98.1
Individual annuities		3,534		102.8		3,439		98.9
Total		199,241		101.6		196,181		98.2
Medical and survival benefits		77,121		105.8		72,864		106.1

New policies

	(Millions of yen, %)
	Nine months ended December 31, 2009 (April 1 to December 31, 2009)				Nine months ended December 31, 2010 (April 1 to December 31, 2010)
			Rate of change				Rate of change
Individual insurance		17,662		111.8		19,411		109.9
Individual annuities		61		90.1		65		107.3
Total		17,723		111.7		19,477		109.9
Medical and survival benefits		8,637		125.1		9,057		104.9

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.

24

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

Solvency Margin Ratio

	(Millions of yen)
	As of December 31, 2010			As of March 31, 2010
(A) Total Solvency Margin		161,571			157,431
Capital, etc.		52,754			54,533
Reserve for price fluctuation		919			794
Contingency reserve		16,261			15,355
General allowance for possible loan losses		14			18
Unrealized gains on securities (90% of gain or 100% of loss)		2,971			1,245
Net unrealized gains and losses on real estate (85% of gain or 100% of loss)		—			—
Policy reserves in excess of surrender values		73,347			69,171
Brought in capital, etc.		—			—
Subordinated debt, etc.		—			—
Deductions		—			—
Others		15,302			16,312
(B) Total Risks		13,563			12,915
Underwriting risk (R1)		6,927			6,382
Underwriting risk for third-sector insurance products including accident, sickness and nursing-care insurance (R8)		3,842			3,516
Guaranteed interest rate risk (R2)		3,212			3,188
Investment risk (R3)		4,076			4,223
Business management risk (R4)		367			352
Guaranteed minimum benefit risk (R7)		336			322
(C) Solvency Margin Ratio
		2,382.3	%		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.

25

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

Quarterly Balance Sheets

	(Millions of yen)
	As of December 31, 2010			As of March 31, 2010			Increase (Decrease)
	Amount			Amount
Assets:
Cash and deposits		10,309			14,371			(4,062	)
Call loans		725			478			247
Receivables under securities borrowing transactions		25,502			25,382			120
Money trusts		20,213			19,916			297
Securities:		415,813			378,612			37,200
Government bonds		276,650			243,074			33,576
Municipal bonds		55,028			52,132	��		2,895
Corporate bonds		76,674			75,571			1,102
Domestic stocks		6,483			6,892			(408	)
Foreign securities		976			941			35
Loans:		14,836			13,763			1,073
Policy loans		14,836			13,763			1,073
Tangible fixed assets		198			178			20
Intangible fixed assets		1,303			240			1,062
Agency accounts receivable		17			24			(7	)
Reinsurance accounts receivable		178			183			(4	)
Other assets		11,451			8,911			2,539
Deferred tax assets		6,725			6,931			(206	)
Allowance for possible loan losses		(7	)		(7	)		0
Total assets		507,268			468,988			38,280
Liabilities:
Policy reserves:		450,504			411,682			38,821
Reserve for outstanding claims		2,441			2,998			(557	)
Policy reserves		446,591			407,193			39,398
Reserve for dividends to policyholders		1,471			1,491			(19	)
Agency accounts payable		749			804			(54	)
Reinsurance accounts payable		163			113			50
Other liabilities		27,955			30,000			(2,045	)
Reserve for retirement benefits		360			300			59
Reserve for bonus payments to directors		—			15			(15	)
Reserves under the special laws:		608			542			66
Reserve for price fluctuation		608			542			66
Total liabilities		480,341			443,459			36,881
Net assets:
Shareholders’ equity:
Common stock		20,000			20,000			—
Retained earnings		1,608			1,564			44
Total shareholders’ equity		21,608			21,564			44
Valuation and translation adjustments:
Unrealized gains on securities available for sale, net of tax		5,318			3,964			1,353
Total valuation and translation adjustments		5,318			3,964			1,353
Total net assets		26,926			25,528			1,398
Total liabilities and net assets		507,268			468,988			38,280

26

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

Quarterly Statements of Income

	(Millions of yen)
	Nine months ended December 31, 2009 (April 1 to December 31, 2009)		Nine months ended December 31, 2010 (April 1 to December 31, 2010)		Increase (Decrease)			Rate of change
	Amount		Amount
Ordinary income:		74,587		84,353		9,765			13.1	%
Insurance premiums and other:		67,058		76,360		9,301			13.9
Insurance premiums		66,925		75,764		8,838			13.2
Investment income:		6,555		6,970		415			6.3
Interest and dividend income		5,993		6,681		687			11.5
Investment gains on money trusts		484		289		(194	)		(40.2	)
Gains on sales of securities		73		—		(73	)		(100.0	)
Other ordinary income:		973		1,022		49			5.0
Reversal of reserve for outstanding claims		205		557		351			170.9
Ordinary expenses:		72,830		83,152		10,322			14.2
Insurance claims and other:		27,987		29,257		1,269			4.5
Insurance claims		6,400		7,869		1,469			23.0
Annuity payments		390		439		48			12.4
Insurance benefits		2,293		2,700		406			17.7
Surrender benefits		18,317		17,631		(685	)		(3.7	)
Other refunds		158		139		(19	)		(12.0	)
Provision for policy reserves and other:		31,202		39,399		8,196			26.3
Provision for policy reserves		31,202		39,398		8,196			26.3
Provision for interest portion of reserve for dividends to policyholders		0		1		0			24.9
Investment expenses:		53		29		(24	)		(45.2	)
Interest paid		49		26		(23	)		(47.6	)
Operating, general and administrative expenses		12,847		13,776		929			7.2
Other ordinary expenses		738		689		(48	)		(6.6	)
Ordinary profit		1,757		1,200		(556	)		(31.7	)
Extraordinary gains:		—		0		0			—
Reversal of allowance for possible loan losses		—		0		0			—
Extraordinary losses:		68		181		112			164.9
Losses on disposal of fixed assets		8		0		(7	)		(88.8	)
Provision for reserves under the special laws:		60		66		5			9.5
Provision for reserve for price fluctuation		60		66		5			9.5
Other extraordinary losses		—		114		114			—
Provision for reserve for dividends to policyholders		832		899		67			8.1
Income before income taxes		855		119		(736	)		(86.0	)
Income taxes and deferred income taxes		322		75		(246	)		(76.6	)
Net income		533		44		(489	)		(91.7	)

27

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

Major Business Results

Total amount of policies in force

	(Number in thousands, Yen in hundred millions, %)
	As of December 31, 2010								As of March 31, 2010
	Number				Amount				Number				Amount
			Rate of change				Rate of change				Rate of change				Rate of change
Individual insurance		604		108.9		42,412		105.9		555		111.1		40,044		105.1
Individual annuities		54		100.3		1,987		100.8		53		96.3		1,971		96.3
Group insurance		—		—		11,280		102.1		—		—		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, %)
	Nine months ended December 31, 2009 (April 1 to December 31, 2009)								Nine months ended December 31, 2010 (April 1 to December 31, 2010)
	Number				Amount				Number				Amount
			Rate of change				Rate of change				Rate of change				Rate of change
Individual insurance		70		115.7		4,740		107.8		80		114.9		5,965		125.8
Individual annuities		0		84.6		38		76.8		2		246.4		92		242.1
Group insurance		—		—		284		146.5		—		—		83		29.5
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 December 31, 2010				As of March 31, 2010
			Rate of change				Rate of change
Individual insurance		61,359		106.2		57,758		105.3
Individual annuities		12,071		100.9		11,966		96.5
Total		73,430		105.3		69,725		103.6
Medical and survival benefits		14,526		106.7		13,610		111.6

New policies

	(Millions of yen, %)
	Nine months ended December 31, 2009 (April 1 to December 31, 2009)				Nine months ended December 31, 2010 (April 1 to December 31, 2010)
			Rate of change				Rate of change
Individual insurance		6,580		104.3		7,871		119.6
Individual annuities		227		82.8		526		231.9
Total		6,807		103.4		8,398		123.4
Medical and survival benefits		1,836		101.7		1,766		96.2

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.

28

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

Solvency Margin Ratio

	(Millions of yen)
	As of December 31, 2010			As of March 31, 2010
(A) Total Solvency Margin		62,847			60,078
Capital, etc.		20,766			21,564
Reserve for price fluctuation		608			542
Contingency reserve		5,202			4,859
General allowance for possible loan losses		—			—
Unrealized gains on securities (90% of gain or 100% of loss)		7,501			5,592
Net unrealized gains and losses on real estate (85% of gain or 100% of loss)		—			—
Policy reserves in excess of surrender values		27,228			25,993
Brought in capital, etc.		—			—
Subordinated debt, etc.		—			—
Deductions		—			—
Others		1,541			1,527
(B) Total Risks
		4,659			4,368
Underwriting risk (R1)		3,074			2,930
Underwriting risk for third-sector insurance products including accident and sickness insurance (R8)		1,077			970
Guaranteed interest rate risk (R2)		171			164
Investment risk (R3)		1,663			1,538
Business management risk (R4)		119			112
Guaranteed minimum benefit risk (R7)		—			—
(C) Solvency Margin Ratio
		2,697.9	%		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.

29

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

Quarterly Balance Sheets

	(Millions of yen)
	As of December 31, 2010			As of March 31, 2010			Increase (Decrease)
	Amount			Amount
Assets:
Cash and deposits		154			182			(28	)
Securities:		4,722			5,407			(685	)
Government bonds		2,388			2,690			(301	)
Domestic stocks		852			950			(98	)
Tangible fixed assets		59			80			(20	)
Intangible fixed assets		—			0			(0	)
Agency accounts receivable		0			0			0
Reinsurance accounts receivable		2			21			(18	)
Other assets		1,154			456			698
Allowance for possible loan losses		—			(0	)		0
Total assets		6,093			6,149			(55	)
Liabilities:
Policy reserves:		1,089			1,041			48
Reserve for outstanding claims		199			141			58
Policy reserves		889			899			(10	)
Agency accounts payable		3			3			0
Reinsurance accounts payable		28			32			(3	)
Other liabilities		253			342			(88	)
Reserve for retirement benefits		23			20			3
Reserves under the special laws:		16			15			0
Reserve for price fluctuation		16			15			0
Deferred tax liabilities		189			225			(35	)
Total liabilities		1,604			1,680			(75	)
Net assets:
Shareholders’ equity:
Common stock		10,100			10,100			—
Capital surplus		2,100			2,100			—
Retained earnings		(8,044	)		(8,128	)		83
Total shareholders’ equity		4,155			4,071			83
Valuation and translation adjustments:
Unrealized gains on securities available for sale, net of tax		334			397			(63	)
Total valuation and translation adjustments		334			397			(63	)
Total net assets		4,489			4,468			20
Total liabilities and net assets		6,093			6,149			(55	)

30

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

Quarterly Statements of Income

	(Millions of yen)
	Nine months ended December 31, 2009 (April 1 to December 31, 2009)			Nine months ended December 31, 2010 (April 1 to December 31, 2010)		Increase (Decrease)			Rate of change
	Amount			Amount
Ordinary income:		2,761			2,866		104			3.8	%
Insurance premiums and other:		2,721			2,824		103			3.8
Insurance premiums		2,665			2,733		68			2.6
Investment income:		40			31		(9	)		(22.8	)
Interest and dividend income		40			31		(9	)		(22.8	)
Other ordinary income:		0			10		10			7,003.9
Reversal of policy reserves		—			10		10			—
Ordinary expenses:		3,222			2,779		(443	)		(13.8	)
Insurance claims and other:		1,009			784		(224	)		(22.3	)
Insurance claims		746			512		(234	)		(31.4	)
Insurance benefits		150			164		14			9.7
Other refunds		0			3		2			238.7
Provision for policy reserves and other:		67			58		(9	)		(14.0	)
Provision for reserve for outstanding claims		61			58		(3	)		(5.1	)
Provision for policy reserves		6			—		(6	)		(100.0	)
Investment expenses:		0			0		(0	)		(29.2	)
Interest paid		0			0		(0	)		(29.2	)
Operating, general and administrative expenses		2,094			1,889		(204	)		(9.8	)
Other ordinary expenses		50			46		(4	)		(8.8	)
Ordinary profit (loss)		(461	)		87		548			—
Extraordinary losses:		9			0		(8	)		(89.5	)
Provision for reserves under the special laws:		1			0		(0	)		(11.6	)
Provision for reserve for price fluctuation		1			0		(0	)		(11.6	)
Other extraordinary losses		8			－		(8	)		(100.0	)
Income (loss) before income taxes		(470	)		86		556			—
Income taxes and deferred income taxes		2			2		—			—
Net income (loss)		(473	)		83		556			—

31

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

Major Business Results

Total amount of policies in force

	(Number in thousands, Yen in hundred millions, %)
	As of December 31, 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		99.3		7,906		98.3		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, %)
	Nine months ended December 31, 2009 (April 1 to December 31, 2009)								Nine months ended December 31, 2010 (April 1 to December 31, 2010)
	Number				Amount				Number				Amount
			Rate of change				Rate of change				Rate of change					Rate of change
Individual insurance		3		96.5		592		91.4		2		78.2		451			76.1
Individual annuities		—		—		—		—		—		—		—			—
Group insurance		—		—		—		—		—		—		—			—
Group annuities		—		—		—		—		—		—		—	��		—

Annualized premiums

Policies in force

	(Millions of yen, %)
	As of December 31, 2010				As of March 31, 2010
			Rate of change				Rate of change
Individual insurance		3,700		101.4		3,650		103.2
Individual annuities		—		—		—		—
Total		3,700		101.4		3,650		103.2
Medical and survival benefits		877		101.6		863		104.6

New policies

	(Millions of yen, %)
	Nine months ended December 31, 2009 (April 1 to December 31, 2009)				Nine months ended December 31, 2010 (April 1 to December 31, 2010)
			Rate of change				Rate of change
Individual insurance		244		94.9		193		79.3
Individual annuities		—		—		—		—
Total		244		94.9		193		79.3
Medical and survival benefits		74		98.7		55		74.8

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.

32

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

Solvency Margin Ratio

	(Millions of yen)
	As of December 31, 2010			As of March 31, 2010
(A) Total Solvency Margin		5,187			5,199
Capital, etc.		4,155			4,071
Reserve for price fluctuation		16			15
Contingency reserve		544			551
General allowance for possible loan losses		—			—
Unrealized gains on securities (90% of gain or 100% of loss)		471			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
		571			582
Underwriting risk (R1)		447			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)		103			118
Business management risk (R4)		19			20
Guaranteed minimum benefit risk (R7)		—			—
(C) Solvency Margin Ratio
		1,814.6	%		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.

33

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.

34

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

35

[English Summary]

Quarterly Securities Report for the Three Months Ended December 31, 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 third 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.)

(6) Status of Major Shareholders

The following Major Shareholders transferred as of the end of the fiscal third quarter.

 Persons who became top 10 shareholders

	(As of December 31, 2010)
Shareholders’ name	Location	Number of shares held (thousands)		Percentage of ownership based on issued shares (%)
JP Morgan Chase Bank 380055 (standing proxy: Mizuho Corporate Bank, Ltd.)	270 PARK AVENUE. NEW YORK. NY 10017. UNITED STATES OF AMERICA (16-13 Tsukishima 4-chome, Chuo-ku, Tokyo)		21,366		1.29

4

‚ Persons who ceased to be top 10 shareholders

	(As of December 31, 2010)
Shareholders’ name	Location	Number of shares held (thousands)		Percentage of ownership based on issued shares (%)
Meiji Yasuda Life Insurance Company	1-1 Marunouchi 2-chome, Chiyoda-ku, Tokyo		19,824		1.19

Notes:

• The Company received notification that Southeastern Asset Management Inc. owned shares as specified below as of November 30, 2010, per a large shareholding report filed on December 7, 2010, but the Company was unable to confirm the number of shares effectively owned by Southeastern Asset Management as of December 31, 2010. Therefore, the transfer stated above is 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.		191,008		11.50

(7) Status of Voting Rights

(Omitted.)

2. Changes in stock prices

(Omitted.)

3. Directors

(Omitted.)

5

Section 5: Financial Condition

1 Basis of Preparation of the Quarterly Consolidated Financial Statements

(1) NKSJ Holdings, Inc. prepares its quarterly consolidated financial statements in accordance with the “Regulations concerning the Terminology, Forms and Preparation Methods of the Quarterly Consolidated Financial Statements” (Cabinet Ordinance No. 64, 2007) and the “Ordinance for Enforcement of the Insurance Business Law” (Ministry of Finance Ordinance No. 5, 1996) pursuant to the provision of Articles 61 and 82 of the “Regulations concerning the Terminology, Forms and Preparation Methods of the Quarterly Consolidated Financial Statements”.

(2) NKSJ Holdings, Inc. was established as of April 1, 2010, so the three months ended December 31, 2009 (October 1 to December 31, 2009), the nine months ended December 31, 2009 (April 1 to December 31, 2009) and the fiscal year ended March 31, 2010 (April 1, 2009 to March 31, 2010) are not disclosed.

Among the items which shall be disclosed when significant changes are recognized, compared with March 31, 2010 under Regulations concerning the Terminology, Forms and Preparation Methods of the Quarterly Consolidated Financial Statements, those items except for minor items are disclosed, as there is no amount of the corresponding period.

2 Results of Operations for the Quarterly Consolidated Accounting Period

Results of operations for the third quarter consolidated accounting period are shown in “2. Other”, 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.

3 Audit Certification

In accordance with the provision of Article 193-2 Paragraph 1 of the Financial Instruments and Exchange Act, the quarterly consolidated financial statements for the three months ended December 31, 2010 (October 1 to December 31, 2010) and the nine months ended December 31, 2010 (April 1 to December 31, 2010) have been reviewed by Ernst & Young ShinNihon LLC.

6

1. Quarterly Consolidated Financial Statements

(1) Quarterly Consolidated Balance Sheets

		(Millions of yen)
		As of December 31, 2010
Assets:
Cash and deposits			234,188
Call loans			64,225
Receivables under resale agreements			64,984
Receivables under securities borrowing transactions			25,502
Monetary receivables bought			34,720
Money trusts			81,392
Securities			6,580,373
Loans			706,428
Tangible fixed assets	*1		361,289
Intangible fixed assets			52,711
Other assets			591,847
Deferred tax assets			231,373
Allowance for possible loan losses			(6,185	)
Total assets			9,022,852
Liabilities:
Underwriting funds:			7,316,385
Reserve for outstanding losses and claims			974,282
Underwriting reserves			6,342,103
Bonds			128,000
Other liabilities			269,447
Reserve for retirement benefits			108,981
Reserve for retirement benefits to directors			129
Reserve for bonus payments			7,446
Reserves under the special laws:			23,325
Reserve for price fluctuation			23,325
Deferred tax liabilities			978
Total liabilities			7,854,696
Net assets:
Shareholders’ equity:
Common stock			100,045
Capital surplus			438,555
Retained earnings			336,104
Treasury stock			(567	)
Total shareholders’ equity			874,137
Valuation and translation adjustments:
Unrealized gains on securities available for sale, net of tax			315,576
Deferred gains on hedges			4,274
Foreign currency translation adjustments			(31,150	)
Total valuation and translation adjustments			288,699
Stock acquisition rights			2,362
Non-controlling interests			2,955
Total net assets			1,168,156
Total liabilities and net assets			9,022,852

7

(2) Quarterly Consolidated Statements of Income

		(Millions of yen)
		Nine months ended December 31, 2010 (April 1 to December 31, 2010)
Ordinary income:			2,002,076
Underwriting income:			1,903,022
Net premiums written			1,465,475
Deposits of premiums by policyholders			118,276
Interest and dividend income on deposits of premiums, etc.			44,860
Life insurance premiums written			171,436
Reversal of reserve for outstanding losses and claims			59,675
Reversal of underwriting reserves			39,068
Investment income:			91,957
Interest and dividend income			116,534
Investment gains on money trusts			847
Gains on sales of securities			9,396
Transfer of interest and dividend income on deposits of premiums, etc.			(44,860	)
Other ordinary income			7,097
Ordinary expenses:			1,956,103
Underwriting expenses:			1,602,747
Net claims paid			925,954
Loss adjustment expenses	*1		97,439
Net commissions and brokerage fees	*1		265,020
Maturity refunds to policyholders			264,815
Life insurance claims paid			43,872
Investment expenses:			30,422
Investment losses on money trusts			914
Investment losses on trading securities			17
Losses on sales of securities			3,607
Impairment losses on securities			9,854
Operating, general and administrative expenses	*1		314,200
Other ordinary expenses:			8,734
Interest paid			5,403
Ordinary profit			45,973
Extraordinary gains:			2,251
Gains on disposal of fixed assets			316
Gains on negative goodwill			149
Other extraordinary gains	*2		1,785
Extraordinary losses:			7,210
Losses on disposal of fixed assets			493
Impairment losses			662
Provision for reserves under the special laws:			4,832
Provision for reserve for price fluctuation			4,832
Other extraordinary losses	*3		1,222
Income before income taxes and non-controlling interests			41,014
Income taxes and deferred income taxes			16,418
Income before non-controlling interests			24,596
Non-controlling interests			(250	)
Net income			24,846

8

(3) Quarterly Consolidated Statements of Cash Flows

	(Millions of yen)
	Nine months  ended December 31, 2010 (April 1 to December 31, 2010)
Cash flows from operating activities:
Income before income taxes and non-controlling interests		41,014
Depreciation		14,722
Impairment losses		662
Amortization of goodwill		1,466
Gains on negative goodwill		(149	)
Increase (decrease) in reserve for outstanding losses and claims		(60,131	)
Increase (decrease) in underwriting reserves		(41,240	)
Increase (decrease) in allowance for possible loan losses		(1,399	)
Increase (decrease) in reserve for retirement benefits		5,402
Increase (decrease) in reserve for retirement benefits to directors		37
Increase (decrease) in reserve for bonus payments		(15,060	)
Increase (decrease) in reserve for bonus payments to directors		(57	)
Increase (decrease) in reserve for price fluctuation		4,832
Interest and dividend income		(116,534	)
Losses (gains) on investment in securities		7,214
Interest expenses		5,403
Foreign exchange losses (gains)		6,363
Losses (gains) related to tangible fixed assets		177
Investment losses (gains) on the equity method		(13	)
Decrease (increase) in other assets		73,652
Increase (decrease) in other liabilities		(40,953	)
Others		11,053
Subtotal		(103,536	)
Interest and dividend received		121,566
Interest paid		(7,123	)
Income taxes paid		(14,388	)
Cash flows from operating activities		(3,482	)

9

		(Millions of yen)
		Nine months ended December 31, 2010 (April 1 to December 31, 2010)
Cash flows from investing activities:
Net decrease (increase) in deposits			23,741
Purchase of monetary receivables bought			(1,187	)
Proceeds from sales and redemption of monetary receivables bought			8,242
Increase in money trusts			(21	)
Decrease in money trusts			3,347
Purchase of securities			(675,269	)
Proceeds from sales and redemption of securities			578,722
Loans made			(141,696	)
Collection of loans			164,727
Net increase in receivables and payables under securities borrowing transactions			5,279
Others			14,174
Subtotal			(19,938	)
Total of operating activities and investment transactions as above			(23,421	)
Acquisition of tangible fixed assets			(6,429	)
Proceeds from sales of tangible fixed assets			895
Acquisition of stocks of subsidiaries resulting in changes in the scope of consolidation			(28,409	)
Others			(2,629	)
Cash flows from investing activities			(56,512	)
Cash flows from financing activities:
Proceeds from issuance of stocks			0
Proceeds from sales of treasury stock			18
Acquisition of treasury stock			(749	)
Dividends paid			(25,671	)
Dividends paid to non-controlling shareholders			(5	)
Others			1,101
Cash flows from financing activities			(25,306	)
Effect of exchange rate changes on cash and cash equivalents			(1,858	)
Net increase (decrease) in cash and cash equivalents			(87,160	)
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			3,022
Cash and cash equivalents at the end of the period	*1		319,848

10

[Changes in significant accounting policies for the preparation of the quarterly consolidated financial statements]

	Nine months ended December 31, 2010 (April 1 to December 31, 2010)
Changes in the scope of consolidation	There is no mention as NKSJ Holdings, Inc. was established as of April 1, 2010. Fiba Sigorta Anonim Sirketi is included in the consolidation from the third quarter of this fiscal year as it became a subsidiary through the acquisition of shares as of November 2, 2010. As a result, the number of consolidated subsidiaries for the nine months ended December 31, 2010 is 24 companies.

[Adoption of accounting methods used specifically for the preparation of the quarterly consolidated financial statements]

Nine months ended December 31, 2010 (April 1 to December 31, 2010)

Calculation of income taxes

Income taxes are calculated by applying a reasonably estimated effective tax rate to income before income taxes. The estimated effective tax rate is determined by estimating the effective tax rate after applying deferred tax accounting for the fiscal year, including the third quarter of this fiscal year. When it is remarkably unreasonable to adopt this accounting method, income taxes are calculated by the statutory effective tax rate.

11

[Notes to the quarterly consolidated financial statements]

(Notes to the quarterly consolidated balance sheets)

As of December 31, 2010
*1	Accumulated depreciation of tangible fixed assets amounts to 395,361 million yen.

(Notes to the quarterly consolidated statements of income)

Nine months ended December 31, 2010 (April 1 to December 31, 2010)
*1	Major components of operating expenses
	Agency commissions, etc.	266,301  million yen
	Salaries	177,637  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 quarterly consolidated statement of income.
*2	Other extraordinary gains are 1,785 million yen of gains on extinguishment of tie-in shares.
*3	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.

(Notes to the quarterly consolidated statements of cash flows)

Nine months ended December 31, 2010 (April 1 to December 31, 2010)
*1	Reconciliation of cash and cash equivalents to the line items disclosed in the quarterly consolidated balance sheet as of December 31, 2010
	Cash and deposits	234,188 million yen
	Call loans	64,225  million yen
	Receivables under resale agreements	64,984  million yen
	Securities	6,580,373  million yen
	Time deposit with an original maturity of more than 3 months	(48,601) million yen
	Securities other than cash equivalents	(6,575,321) million yen
	Cash and cash equivalents	319,848  million yen
2	Cash flows from investing activities include cash flows from investment activities conducted as a part of insurance business.

12

(Shareholders’ Equity)

As of December 31, 2010 and the nine months ended December 31, 2010 (April 1 to December 31, 2010)

1 Type and number of shares outstanding:

Common stock: 1,661,409 thousand shares

2 Type and number of treasury stock:

Common stock: 975 thousand shares

3 Stock acquisition rights as of December 31, 2010:

Stock acquisition rights for stock option: 2,362 million yen (NKSJ Holdings, Inc.     2,362 million yen)

4 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 nine months ended December 31, 2010, dividends with the effective date after December 31, 2010

None.

13

(Segment information)

[Segment information]

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 Nipponkoa Asset Management Co., Ltd. Yasuda Enterprise Development Co., Ltd.

14

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

Nine months ended December 31, 2010 (April 1 to December 31, 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		1,465,475		171,436			1,636,912		3,677			1,640,589		361,487			2,002,076
Sales arising from internal segment		—		—			—		2,289			2,289		(2,289	)		—
Total		1,465,475		171,436			1,636,912		5,966			1,642,879		359,197			2,002,076
Net income (loss) attributable to segment		29,261		(3,330	)		25,931		(1,084	)		24,846		—			24,846

Notes)
1       The definitions of sales are as follows.
Property and casualty insurance business: Life insurance business:	Net premiums written 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:		(2,289) million yen
Ordinary income related to property and casualty insurance business and life insurance business excluding net premiums written and life insurance premiums written:		361,487 million yen
4       Net income or loss attributable to segment is adjusted to net income in the quarterly consolidated statements of income.

3 Information related to goodwill by each reportable segment

(Significant changes in the amount of goodwill)

In “Property and casualty insurance business”, as mentioned in “Business combinations”, Sompo Japan Insurance Inc. and other 5 consolidated subsidiaries of NKSJ acquired shares of Fiba Sigorta Anonim Sirketi as of November 2, 2010. The increase in the amount of goodwill related to the acquisition is 21,233 million yen for the three months ended December 31, 2010.

15

(Financial instruments)

As of December 31, 2010

The financial instruments which NKSJ Holdings, Inc. considers extremely difficult to figure out the fair value are not included in the following table.

	(Millions of yen)
	Carrying amount on balance sheet			Fair value		Unrealized gains  (losses)
Cash and deposits		234,188			234,188		—
Call loans		64,225			64,225		—
Receivables under resale agreements		64,984			64,984		—
Receivables under securities borrowing transactions		25,502			25,502		—
Monetary receivables bought		34,720			34,720		—
Money trusts		80,958			80,958		—
Securities		6,390,088			6,446,340		56,251
Loans		706,428
Allowance for possible loan losses (*1)		(1,561	)
		704,866			712,881		8,014
Total assets		7,599,534			7,663,800		64,266
Bonds		128,000			131,008		3,008
Total liabilities		128,000			131,008		3,008
Derivative transactions (*2)
Not qualifying for hedge accounting		1,899			1,899		—
Qualifying for hedge accounting		14,536			14,535		(0	)
Total derivative transactions		16,436			16,435		(0	)

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

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

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

Notes)

1 Calculation methods for the fair value of 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 Calculation methods for the fair value of 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 Calculation methods for the fair value of 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 Calculation methods for the fair value of 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 Calculation methods for the fair value of monetary receivables bought

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

16

6 Calculation methods for the fair value of money trusts

The fair value of the domestic bonds which are managed as trust asset 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 asset 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 derivative transactions, the fair value of quoted derivatives is based on exchange price and the fair value of forward foreign exchanges is based on forward exchange rate.

7 Calculation methods for the fair value of 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 Calculation methods for the fair value of 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 quarterly consolidated balance sheet, so such amount is presented as the fair value.

9 Calculation methods for the fair value of 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.

10 Calculation methods for the fair value of derivative transactions

The fair value of forward foreign exchange transactions is calculated using forward exchange rate. As for forward foreign exchange 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 exchange transactions.

The fair value of currency option transactions is based on the price quoted by counterparties.

The transactions such as forward foreign exchanges that applied exceptional accounting are accounted for together in securities of hedge objectives. Therefore, the fair value is included in the fair value of the securities.

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.

The fair value of equity index future transactions is based on the closing price at major exchanges.

The fair value of equity index option transactions is based on the closing price at major exchanges.

The fair value of bond future transactions is based on the closing price at major exchanges.

The fair value of credit derivative transactions is based on the price quoted by counterparties.

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

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

17

(Securities)

As of December 31, 2010

1 Bonds held to maturity (which have readily determinable fair value)

	(Millions of yen)
	Carrying amount on balance sheet		Fair value		Unrealized gains (losses)
Domestic bonds		1,109,413		1,164,456		55,043
Foreign securities		62,422		63,158		735
Total		1,171,836		1,227,614		55,778

2 Policy reserve matching bonds (which have readily determinable fair value)

	(Millions of yen)
	Carrying amount on balance sheet		Fair value		Unrealized gains (losses)
Domestic bonds		14,775		15,248		473
Total		14,775		15,248		473

3 Securities available for sale (which have readily determinable fair value)

	(Millions of yen)
	Cost		Carrying amount on balance sheet		Unrealized gains (losses)
Domestic bonds		2,431,283		2,500,594		69,310
Domestic stocks		1,135,321		1,609,106		473,784
Foreign securities		1,092,602		1,034,476		(58,126	)
Others		89,625		92,171		2,545
Total		4,748,834		5,236,348		487,513

Notes)

1 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 quarterly consolidated balance sheet, are included in “Others” above.

2 Impairment losses on securities available for sale which have readily determinable fair value amount to 8,918 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 quarterly balance sheet date, as a rule.

18

(Derivatives transactions)

As of December 31, 2010

		(Millions of yen)
Type	Transaction	Notional amount			Fair value			Unrealized gains (losses)
Currency derivatives	Forward foreign exchanges:
	Short		59,286			1,891			1,891
	Long		16,466			(314	)		(314	)
	Currency options:
	Short		35,823
			87	*		(30	)		57
	Long		33,174
			87	*		143			55
Equity derivatives	Equity index futures:
	Short		5,611			(55	)		(55	)
	Equity index options:
	Short		5,417
			205	*		(1	)		203
	Long		4,400
			205	*		108			(96	)
Bond derivatives	Bond futures:
	Long		1,426			(13	)		(13	)
Others	Credit derivatives:
	Short		9,000			66			66
	Long		2,000			0			0
	Weather derivatives:
	Short		472
			19	*		(10	)		8
	Earthquake derivatives:
	Short		3,960
			119	*		(10	)		109
	Long		3,555
			366	*		125			(241	)
Total			—			1,899			1,672

Notes)

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

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

19

(Business combinations)

Three months ended December 31, 2010 (October 1 to December 31, 2010)

1 Business integration

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

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

Fiba Sigorta Anonim Sirketi (Fiba Sigorta)    :Property and casualty insurance business

(b) Reason for business integration

Through the acquisition of Fiba Sigorta, NKSJ Holdings, Inc. (NKSJ) plans to establish a strong platform to expand NKSJ’s property and casualty insurance business in the fast-growing Turkish market.

(c) Date of business integration

November 2, 2010

(d) Legal form of business integration

Acquisition of shares by cash

(e) Name of the entity after business integration

Fiba Sigorta Anonim Sirketi

(f) Percentage of voting rights acquired

90.0%

(g) The primary reason for defining the acquiror

NKSJ was defined as the acquiror because Sompo Japan Insurance Inc. and other 5 consolidated subsidiaries of NKSJ acquired shares of Fiba Sigorta by cash.

(2) The business term of the acquiree included in the quarterly consolidated statements of income for the nine months ended December 31, 2010

None. The date of business integration was the date after September 30, 2010 which is the balance sheet date of the third quarter of Fiba Sigorta.

(3) Acquisition cost with details of the acquiree

Purchase price	484 million Turkish liras
Direct cost for the acquisition	22 million Turkish liras
Total	507 million Turkish liras

20

(4) Amount of goodwill, reason for recognizing goodwill and method and term of amortization

(a) Amount of goodwill

377 million Turkish liras

(b) Reason for recognizing goodwill

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

Total assets:	381 million Turkish liras
Cash and deposits	256 million Turkish liras
Total liabilities:	251 million Turkish liras
Underwriting funds	218 million Turkish liras

2 Transactions under common control

(1) The name of constituent companies and its type of business, date of business integration, legal form of business integration, name of the entity after business integration and purpose of transactions

(a) The name of constituent companies and its type of business

Sompo Japan Asset Management Co., Ltd. (SJAM)	: Investment advisory business and mutual fund business
ZEST Asset Management Ltd. (ZEST)	: Investment advisory business

(b) Date of business integration

October 1, 2010

(c) Legal form of business integration

Absorption by SJAM (consolidated company of NKSJ) of a surviving company and ZEST (non-consolidated company of NKSJ) of a merging company

(d) Name of the entity after business integration

Sompo Japan Nipponkoa Asset Management Co., Ltd. (consolidated company of NKSJ)

(e) Purpose of transactions

NKSJ plans the concentration and the enhancement of the investment operation of NKSJ Group.

(2) Summary of accounting treatment

The transactions are accounted for as transactions under common control in accordance with the Accounting Standards Board of Japan Statement No. 21 “Accounting Standard for Business Combinations in Japan” (December 26, 2008) and the Accounting Standards Board of Japan Guidance No. 10 “Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures” (December 26, 2008).

21

(Per share information)

1 Total net assets per share

	As of December 31, 2010
Total net assets per share		700.32 yen

Note)

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

	(Millions of yen)
	As of December 31, 2010
Total net assets		1,168,156
Amount to be deducted from total net assets:		(5,318	)
Stock acquisition rights		(2,362	)
Non-controlling interests		(2,955	)
Total net assets attributable to common stocks		1,162,837
Number of common stocks used for calculation of total net assets per share		thousand shares
		1,660,433

2 Net income per share

	Nine months ended December 31, 2010 (April 1 to December 31, 2010)
Net income per share—Basic		14.96 yen
Net income per share—Diluted		14.93 yen

Note)

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

	(Millions of yen)
	Nine months ended December 31, 2010 (April 1 to December 31, 2010)
(1) Net income per share—Basic
Net income		24,846
Net income not attributable to common stockholders		—
Net income attributable to common stocks		24,846
Average number of common stocks outstanding		thousand shares 1,660,680
(2) Net income per share—Diluted
Adjustment of net income		—
Increase of common stocks		thousand shares
		2,603

22

(Significant subsequent events)

None.

23

2. Other

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

The quarterly consolidated statements of income for the third quarter consolidated accounting period are not reviewed, 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 December 31, 2010 (October 1 to December 31, 2010)
Ordinary income:		672,277
Underwriting income:		641,637
Net premiums written		477,642
Deposits of premiums by policyholders		38,878
Interest and dividend income on deposits of premiums, etc.		14,799
Life insurance premiums written		62,530
Reversal of reserve for outstanding losses and claims		24,032
Reversal of underwriting reserves		22,613
Investment income:		28,734
Interest and dividend income		38,080
Investment gains on money trusts		(48	)
Investment gains on trading securities		(67	)
Realized gains on sales of securities		3,556
Transfer of interest and dividend income on deposits of premiums, etc.		(14,799	)
Other ordinary income		1,905
Ordinary expenses:		665,193
Underwriting expenses:		554,688
Net claims paid		318,674
Loss adjustment expenses		31,989
Net commissions and brokerage fees		88,955
Maturity refunds to policyholders		98,962
Life insurance claims paid		15,136
Investment expenses:		5,508
Investment losses on money trusts		333
Investment losses on trading securities		17
Realized losses on sales of securities		1,405
Impairment losses on securities		3,026
Operating, general and administrative expenses		102,191
Other ordinary expenses:		2,804
Interest paid		1,783
Ordinary profit		7,084
Extraordinary gains:		236
Gains on disposal of fixed assets		236
Extraordinary losses:		2,286
Losses on disposal of fixed assets		168
Provision for reserves under the special laws:		1,989
Provision for reserve for price fluctuation		1,989
Other extraordinary losses		129
Income before income taxes and non-controlling interests		5,034
Income taxes and deferred income taxes		4,374
Income before non-controlling interests		659
Non-controlling interests		(70	)
Net income		729

Note) The above table represents the amounts deducting the amounts for the six months ended September 30, 2010 from the amounts for the nine months ended December 31, 2010.

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(Segment information)

[Segment information]

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

Three months ended December 31, 2010 (October 1 to December 31, 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		477,642		62,530			540,173		1,341		541,514		130,763			672,277
Sales arising from internal segment		—		—			—		803		803		(803	)		—
Total		477,642		62,530			540,173		2,145		542,318		129,959			672,277
Net income (loss) attributable to segment		1,644		(950	)		693		36		729		—			729

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:		(803) million yen
Ordinary income related to property and casualty insurance business and life insurance business excluding net premiums written and life insurance premiums written:		130,763 million yen
4       Net income or loss attributable to segment is adjusted to net income in the quarterly consolidated statements of income.

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(Per share information)

	Three months ended December 31, 2010 (October 1 to December 31, 2010)
Net income per share—Basic		0.43 yen
Net income per share—Diluted		0.43 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 December 31, 2010 (October 1 to December 31, 2010)
(1) Net income per share—Basic
Net income		729
Net income not attributable to common stockholders		—
Net income attributable to common stocks		729
Average number of common stocks outstanding		thousand shares 1,660,478
(2) Net income per share—Diluted
Adjustment of net income		—
Increase of common stocks		thousand shares
		3,192

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(2) Other

None.

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

(Omitted.)

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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

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