How the London Market can add How the London Market can add value to the Japanese Insurance value to the Japanese Insurance IndustryIndustry

Takashi OkaTokio Marine & Nichido Fire Insurance Co., Ltd.

2nd November, 2005

IntroductionIntroduction

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

Relative size of Relative size of the Japanese Marketthe Japanese Market

Life

Non LifeNon- Life and Life Premium volumes

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

USA Japan UK France Germany

(Amounts in USD Million)

Source: Sigma 2 / 2005

Japanese Non-Life Premium Japanese Non-Life Premium Income by ClassIncome by Class

16.84%

40.32%17.02%

9.03%

3.10%13.69%

Fire

Voluntary Automobile

Personal Accident

Miscellaneous Casualty

Marine Inland and TransitCompulsory Automobile

Direct Premiums by Line (1 April, 2004- 31 March, 2005)

Source: The General Insurance Association of Japan

Introduction (cont’d)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

Outwards cessions from Outwards cessions from JapanJapan

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

Respect the difference Respect the difference -one Norm?- -one Norm?-

JAPAJAPANN

M

JAPANJAPAN

Technology transferTechnology 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

Additional ServicesAdditional Services

Legal, Accounting and Actuarial services Access to a large highly skilled and talented

workforce in the underwriting, broking and support industries

Training

Inwards to JapanInwards 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

Working Environment in Working Environment in LondonLondon

Large Japanese community in London Ease of obtaining work permits Language Many longstanding friendships

Value of London versus Value of London versus other locationsother 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

Value of London versus Value of London versus other locations other locations (cont’d)(cont’d)

Strong infrastructure and technical support Tested claims paying ability Strong and transparent regulatory regime Communications Ease of language History

ConclusionConclusion

“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