Press Conference by the Minister for Financial Services

(Excerpt)

22 November, 2001

Q.

We understand that the amount of estimated payments of reinsurance claims for the damage by the terrorist attacks in the U.S. will be very large, and I think these reinsurance payments will be made by other non-life insurance companies. What do you think about the present situation of other non-life insurance companies, including their soundness?

A.

In the case of this company(Taisei Fire and Marine Insurance Company), we recognize the estimated total amount of loss will be 74.4 billion yen, which I understand will be announced by the company later today. The failure of Taisei Fire And Marine Insurance was caused not just by the terrorist attacks, but, comparatively speaking, the reinsurance claims to be paid for the damage by the terrorist attacks was the largest factor. The failure coincided as the plan of the merger with Yasuda Fire & Marine Insurance Corporation and Nissan Fire & Marine Corporation, and the magnitude of the reinsurance loss on these two companies is only 2.6 billion yen each. Therefore, we do not think that there is any fear that the same problem as that of Taisei Fire & Marine Corporation will arise to other non-life insurance companies.

Director-General of the Supervisory Bureau: I would like to make a correction. Nissan Fire & Marine Insurance will be demanded payment of the same amount, that is, 74.4 billion yen, because the company participates in the same reinsurance as Taisei. I have heard Yasuda Fire & Marine already announced they have to pay 2.6 billion yen for the damage by the terrorist attacks.

Q.

Will not the same problem occur to Nissan?

A.

I understand that Nissan will not go into any deficiency of net assets. Therefore, I understand that both companies are moving toward their merger on April 1st, 2002 as Non-life Insurance Japan according to their schedules.