1. How the London Market can add value to the Japanese Insurance Industry Takashi Oka Tokio Marine & Nichido Fire Insurance Co., Ltd. 2 nd November, 2005

2. Introduction  Long historical connection with the London Market  Tokio Marine Nichido started in 1890  Other Japanese co’ys have 75 year + relationships  The Japanese Insurance Industry is domestically focused. Less than 5% of income emanates from outside Japan  Very large domestic Automobile portfolio  2004 Domestic automobile premium US$ 44.28 billion being 54.1% of total written premium

3. Relative size of the Japanese Market Life Non Life  Non- Life and Life Premium volumes 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 USAJapanUKFranceGermany (Amounts in USD Million) Source: Sigma 2 / 2005

4. Japanese Non-Life Premium Income by Class 16.84% 40.32% 17.02% 9.03% 3.10% 13.69% Fire Voluntary Automobile Personal Accident Miscellaneous Casualty Marine Inland and Transit Compulsory Automobile  Direct Premiums by Line (1 April, 2004- 31 March, 2005) Source: The General Insurance Association of Japan

5. Introduction (cont’d)  London is important window for the Japanese Insurance Market  Immediate targets are Asia & BRIC, but Europe & USA remain major markets  Millea and other large Japanese Insurance Groups developing into general financial services companies  Greater opportunities for the London Financial community as a whole

6. Outwards cessions from Japan  Provision of reinsurance capacity  Long term stability of capacity  Proven willing claims paying ability  Quick response is a must  Company underwriting is key. Equal treatment not necessarily fair  Transparent and sophisticated regulatory regime

7. Respect the difference -one Norm?- JAPA N

8. Technology transfer  Development of new policy forms & coverage  Many examples of policies developed in the London Market now successfully sold in Japan  Technical support on complex niche business  Development of sophisticated analytical techniques such as financial modelling and portfolio management

9. Additional Services  Legal, Accounting and Actuarial services  Access to a large highly skilled and talented workforce in the underwriting, broking and support industries  Training

10. Inwards to Japan  Market access to variety of business  Support of a large and flexible distribution system through London brokers  Help grow the overall size of the Japanese Insurance Market  Ease of entering the London Market through a variety of methods  Strong technical/infrastructure support easily available

11. Working Environment in London  Large Japanese community in London  Ease of obtaining work permits  Language  Many longstanding friendships

12. Value of London versus other locations  Access to technical expertise in many lines of business  Lower operating overheads than some locations  Wide talent pool to work with and recruit from  Relative ease of obtaining work permits compared to other locations

13. Value of London versus other locations (cont’d)  Strong infrastructure and technical support  Tested claims paying ability  Strong and transparent regulatory regime  Communications  Ease of language  History

14. Conclusion  “History is more or less bunk” (quote by Henry Ford 1916)  This is not true for the London Market and the Japanese Insurance Industry  Please continue to enhance the London Market  The Japanese Insurance Industry is willing to help more in the future