(provisional translation)
June 4, 1999
Financial Reconstruction Commission


Statement by the Chairman of the Financial Reconstruction Commission

-- On Toho Mutual Life Insurance Company



  1. I have been notified by the Financial Supervisory Agency (hereafter referred to as the "Agency") that Toho Mutual Life Insurance company (hereafter referred to as "Toho Life"), at its extraordinary board meeting this afternoon, decided to discontinue its business operation, and has reported this decision to the Agency and has asked the Agency to issue an order to suspend its business in accordance with Article 241 of the Insurance Business Law.


  2. The Agency, immediately after receiving the report from Toho Life, issued an order to Toho Life to suspend part of its business and to prohibit any activities which may cause further deterioration of its asset quality, in pursuance of the said article.

    Also, the Agency is planning to promptly appoint the Insurance Administrator of the company so that the Agency may order the Administrator to draft a plan of insurance contracts transfer for the purpose of continuing with those contracts.


  3. In the case of bankruptcy of an insurance company, insurance policyholders are protected by the Life Insurance Policyholders Protection Corporation, which has been established in pursuance of the Financial System Reform Law. The safety net is thus in place through the financial assistance and/or continued underwriting of existing insurance contracts by the same Corporation. Moreover, it should be noted that all sum payable at death that have to be paid during the specified term until the end of March, 2001 are fully protected and will be paid back in full amount.


  4. Therefore, we strongly encourage the insurance policyholders to act rationally instead of basing their actions on unfounded rumor.

Statement by the Commissioner


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