Millea Group CSR Report 2006

Millea Group Overview / Contents / Editorial Policy

Overview of the Millea Group (as of March 2006) The descriptions of "Inc." and "Co., Ltd" have been omitted throughout the report.

Millea Holdings
Tokio Marine & Nichido
Tokio Marine &Nichido Life

Tokio Marine & Nichido Risk Consulting Risk consultation

Sino Life InsuranceLife Insurance (China)

Tokio Marine &Nichido Financial Life

Tokio Marine Asset Investment

Investment advisorybusiness

Tokio Marine Capital

Private equity investment

Tokio Marine Financial Solutions

Derivatives business
Health and medical

Tokio Marine & Nichido Medical Service related services

Millea Life Insurance

Senior citizen-related

Tokio Marine & Nichido Better Life Service service

Life Insurance (Thailand)

Tokio Marine Asia*

Tokio Marine Newa
Insurance

International Assistance

Emergency assistanceservice

Millea Agency

Management insurance
agency subsidiaries

Non-life Insurance (Taiwan)

Millea Real EstateManagement

Tokio Marine & Nichido Adjusting Services Claim investigations

IFFCO-TOKIO General
Insurance

Tokio Marine &Nichido Career Service

Tokio Marine & Nichido Systems

Non-life Insurance (India)

Tokio Marine &Nichido Facilities

System development
and management

Tokio Marine & Nichido Outsourcing Management Insurance office works

The Tokio Marine and Fire
Insurance Company

Tokio Marine Europe Insurance

Insurance

Non-life Insurance (Singapore)

Tokio Marine Brasil Seguradora

Insurance

Tokio Millennium Re

Reinsurance

Tokio Marine Global

Reinsurance

Tokio Marine Management

Insurance Agent

Tokio Marine Insurans
Non-life Insurance (Malaysia)

Real Seguros S.A.
Millea Mondial
Tokio Marine & Nichido SamuelNon-life Insurance (Brazil)
Assistance / BPO

Company President* Millea Asia has changed its name to
Tokio Marine Asia since June 23, 2006.

Nursing home

Company Overview (As of March 2006)
Official Name

,etc.

Millea Holdings, Inc.
Kunio Ishihara

Main Financial Indicators (Consolidated)
Consolidated Fiscal Year

FY 2003

FY 2004

FY 2005

Ordinary Income(Million Yen)

2,775,700

2,899,500

3,400,000

Tokyo Kaijo Nichido Building Shinkan 9F,
1-2-1 Marunouchi, Chiyoda-ku, Tokyo,
100-0005, JapanNet Premiums Income(Million Yen)

1,943,600

1,925,100

1,978,700

Operating Earnings(Million Yen)

191,700

140,000

136,600

Current Net Earnings(Million Yen)

111,400

67,60090,000Date of Establishment

April 2, 2002

Total Asset Value(Million Yen) 11,006,300

11,624,500

14,260,000

Common Stock

150 billion yen

21

19.8

22.5

19,77918,91019,761

Address

Stock Exchange Listings
Supported CSR
Related International
Charter / Guideline

Tokyo, Osaka and NASDAQ (U.S.)
United Nations Global Compact(Expression of participation in April 2005)

Equity Capital Ratio(%)
No. of Employees**Full time workers only, excluding part-time employees.

Editorial Policy

Contents

This report has the aim of reporting to all our stakeholders

Overview of the Millea Group

plainly the initiatives listed in our FY 2005 CSR Basic Plan andcontent of other initiatives, and their results.

1

Editorial Policy / Contents

This report is composed of special topics and chapters based

2

Message from the Topon our CSR Charter.

4

CSR of the Millea Group

6

Corporate GovernanceIn order to make the Millea Group's stance on CSR clearer, we
referred in special topics to the group's medium-and long-term
Millea Group's CSR.

Providing Value to Our Customers:
Products and Services / Human PowerThe philosophy and position relating to the Millea Group's

9

Challenging New Risks through Provision of Products and Services

initiatives in corresponding areas are given on the top page of

9Expansion of "Precursory" and "Follow-Up" Safety and Security
that Goes beyond the Boundaries of Conventional Insurance

strategy, and the goals that must be strived for through theeach chapter, and the relationship between this stance andinitiatives that are introduced are explained as a story.
This report reflects feedback and opinions from our readers to
the extent possible.
As a continuation on from last year, we have edited this

10 Aiming to Be Safety and Security Professionals
12 Aiming for Work and Services Trusted by Our Customers–"Practicing Human Power"

report with a focus on the employees and agents that are our

Two-Way Communication

contact points with all our stakeholders. Also, we are taking

15 Improving Customer Satisfaction through Dialogue withintroduction of overseas initiatives into even greater
consideration than last year.

Our Customers
16 Timely and Appropriate Information Disclosure and Dialogue

We did not make comprehensive coverage of initiatives but tried
to mention them according to their importance. On matterswhich were not included in this report, we will make them publicthrough alternative means such as other disclosure documents,
our homepage and other media.

with Shareholders
16 Promotionof Communication
Overseas Employees

withDomesticand17 Tokio Marine & Nichido First CSR Dialogue

Contributions to Local Communities and Society*Links to Millea Holdings' Disclosure Documents and Homepage

http://www.millea.co.jp/en/finance/annualreport.html(Annual Report)

http://www.millea.co.jp/en/index.html(Homepage)19 Practicing Philanthropy as a Member of Local Communities

and Society
20 Coexistence with Local Communities and Society
20 Philanthropic Activity Support Framework
21 Practicing Philanthropy as a Member of the International Community[Guidelines Referred to]• GRI (Global Reporting Initiative)"Sustainability Reporting Guidelines 2002"• UN Global Compact Guidelines for"Communication on Progress" (COPs)

Global Environmental Protection
23 Promotion of Consideration for the Environment throughInsurance and Investments
24 Practice of Environmental Education and Awareness Raising

Aimed at Society
25 Reduction of Environmental Burden Associated with

[Scope of the Report]• Organizations Covered in This Report
This report basically covers the activities of allcompanies within the Millea Group.
• Reporting Period
This report basically covers activities from the 2005
Fiscal Year (from April 2005 to March 2006). However,there are passages where information not belonging
to this time period has been provided in order to givecomplete pictures.

Business Activities
26 Carbon Neutral and Contribution to Local Communities throughMangrove Reforestation

Compliance
29 Compliance Promotion Framework
30 Fostering the Ethics of Our Employees and Agents
31 Establishment of Information Security Governance

Respect for Human Rights and Dignity
33 Creating Comfortable Workplaces for All Workers
34 Supporting for Coexistence between Work and Nursing Care /The Publication Date
• Previous Report: July 2005
• This Report:

September 2006

• Next Report:

July 2007 (Schedule)Childcare / Housework
35 Creating Workplace with Dynamism

36 Comment from a Third Party
37 GRI Guidelines Comparative Table

1

Message from the Top

Putting Customer Trustat the Base of
All Our Activities

In the Beginning"With customer trust at the base of all its
corporate activities" as its Corporate
Philosophy, the Millea Group seeks to fulfill its
corporate social responsibility (CSR) under theaction principle of "pursuing strict compliancein all aspects of its business activities."
It has come to light, however, that there werecases of omission to pay claims for incidental
expenses, etc. by our subsidiary, Tokio Marine& Nichido Fire Insurance Co., Ltd., and lastNovember the company received anadministrative disposition from the Financial
Services Agency (a business improvement
order under the Insurance Business Law). Also,in March of this year it was pointed out that
there was a partial omission of reference to thewarning language in the brochures on oursavings-type nursing care expense insurance
which we started selling in October 1990.
The fact that we let these things occur damages
the trust in us of our customers as well as people
at large in society, and once again we would
deeply and sincerely apologize for the greatinconvenience and concern caused.
In order to prevent a recurrence of similarcases in the future, both management andemployees will make a united effort to return tothe basics of the insurance business, review
thoroughly the way our business should bemanaged, including our attitude itself, andstrive for restoring customers' trust in us bytaking every measure possible to put a stop to
the recurrence.

Kunio Ishihara
President
Millea Holdings, Inc.

2

New Medium-Term Plan for the Group—Stage Expansion 2008
As of this April, the Millea Group's new
medium-term plan "Stage Expansion 2008" gotunder way. The key phrase here is "Stage
Expansion of Insurance." Contained within thewords of this phrase are a determination to
fulfill our commitments to society through our
day-to-day activities and a strong passion
behind it.
This medium-term plan embodies the Millea
Group's vision of "expanding the stage of
insurance, aiming to be an international topclass insurance group." We consider that thephrase "Stage Expansion of Insurance" is a key
to development as a business groupindispensable to the world around us, with apicture in mind of the Millea Group 10 years
from now. As a business group with insurance
operations at its core, it is a matter of coursethat we will continue to provide sufficient
coverage against accidents and illnesses. We
do not stop there but seek always to catch
precisely what "safety and security" ourcustomers are really in need. Thus, we willcontinue developing innovative products andservices that go beyond the realm of"conventional and traditional insurance," to thegoal of growing into an international top-classinsurance group.

The CSR of the Millea Group
The Millea Group is a business group withinsurance operations at its core which havestrong social and public natures, and wishes tooffer "safety and security" to customers
through its core insurance businesses and thus
contribute to the growth of affluent andcomfortable society. And we think that we canfulfill our commitments to society by being
recognized as a presence indispensable tosociety through such effort and by making
sustained growth along with society. For such
purposes, we have been doing all we can toearn the complete trust of all our customers bythoroughly observing compliance in every facetof our business activities. At the same time, wewill continue our efforts to undertake initiatives
proactively in the areas of regional and social
contributions, global environmental protection
and respect for human rights, while
endeavoringtoengagein
two-way
communication with all our stakeholders as agood corporate citizen. It is our intention toenhance our corporate value by gaining theappreciationofcustomers,
regional
communities, society and our stockholders forthese initiatives and through "a Positive Spiralof Values" in which both our employees andagents, who are our partners, take pride.

As we develop into the future, we are determined to continue our efforts toprovide customers with products and services of the highest quality, andspread "safety and security." Furthermore, by adhering to proper
management as a good corporate citizen, we will broadly contribute to thegrowth of society. In addition, we promise to all our stakeholders that wewill continue working to improve corporate value while achieving
sustainable growth alongside society.

3

CSR of the Millea GroupThe business activities of the Millea Group are made possible only with support of our many
stakeholders. What should we do to continue being trusted and supported? Here, we will
explain what the Millea Group seeks to achieve through CSR.

Philosophy behind the CSR of the Millea GroupIn the Millea Group we had a dialogue on what we should do to continue being trusted by all our stakeholders.
The conclusion we have reached is that the translation of our Corporate Philosophy into practice is no otherthan CSR itself and that the thorough practice of it will lead to the increase of value we provide for all our
stakeholders and, consequently, enhance our corporate value which is the sum total of such value. The Millea
Group enacted its "Millea Group CSR Charter" as an action agenda to practice CSR.

Millea Group Corporate Philosophy
The Millea Group is committed to the continuous enhancement of corporate value, with customer trustat the base of all its activities.
• By providing customers with the highest quality products and services, we will spread safety andsecurity to all around us.
• For fulfilling our responsibility to shareholders, we will pursue global development of sound growing
and profitable businesses.
• For promoting the creativity of each and every employee, we will foster a corporate culture which
encourages free and open communications.
• While demonstrating responsible management as a good corporate citizen, we will make a positive
contribution to society.

Millea Group CSR Charter
The Millea Group is committed to fulfilling its corporate social responsibilities ("CSR") by implementing
its management philosophy to achieve sustainable growth together with the development of society, in
accordance with the following principles:
Products and Services

Contribution to Local Communities and Societies• We aim to provide society with products andservices to meet its needs for safety and security.

• A s a me mb e r of v a r i ou s c ommu n i t i e s a n dsocieties, we respect the diversity of cultures andcustoms and we aim to contribute actively to theneeds of the current era.

Respect for Human Rights and Dignity• We respect and actively promote the recognitionof human rights.
• We strive to ensure an energetic working
environment that is both safe and healthy and topromote training and education of our employees.
• We respect the right to privacy and strive to enforce
sound information management and control.

Protection of the Global Environment• Acknowledging that the protection of the global
environment is an important responsibility for all
corporate entities, we respect harmonization withand improvement of the global environment in allof our activities.

Compliance• While striving to maintain high ethical standards at
all times, we will pursue strict compliance in all
aspects of our business activities.

Communication• We intend to disclose information timely andappropriately and to promote dialogue with all our
stakeholders to ensure effective corporate
management.

CSR Promotion Framework
The Millea Group has set up a "CSR Board" chaired by thepresident of the Millea Holdings and composed of thepresidents of each of the group companies as members.
The Board draws up basic policies and plans relating toinitiatives, and monitors progress. The group companies
promote CSR initiatives within their own companies andsubsidiary companies in accordance with the basic policies
and plans of the CSR Board. Furthermore, Tokio Marine &Nichido has set up a CSR Section exclusively in charge ofpromoting CSR, and also has put in place a "CSR
Committee" under the Board of Directors which engages insharing information with departments/sections proceedingwith CSR initiatives and in promoting and encouraging
their activities.

4

Millea Group CSR Promotion Framework
MilleaHoldings

Tokio Marine & Nichido
CSR Board

Board of Directors

Management Meeting

CSR Committee
CSR Section

Corporate Planning Dept.
Other Millea
Group Companies

The Practice of CSR in the Millea Group

Diagram of the Millea Group's Overall CSR

What is Human Power?

Local/Social Contribution (Responsibility as a Corporate Citizen)
Global Environmental Protection (Response to Humankind's Greatest Risk)
Compliance (Mandatory for Corporate Existence)
Respect for Human Rights (Universal Principles)Sound Financial Grounding

Customer
Value

Enhancement of Corporate Value

Two-Way Communication

Enhancement of Corporate Brand Value＝ Products/Services ＋
Human Powerof Employees & Agents

Practice

Overall Group CSR(= Practising our Corporate Philosophy)

Value Provided
to Customers

1 Abilities as Professionals
2 Energies
3 Acting while constantly
considering the position of
those one is dealing with

Shareholder
Value

Employee
Value

Agent
Value

SocialValue

CSR Initiatives and Enhancement of Our Corporate Value
With regard to the kinds of initiatives we engage in, respect for human rights, compliance with legislation, and also
protection of the global environment and consideration toward local communities and society are all issues that acompany should undertake as a matter of course as an entity within society, and we believe that it is only with thisfoundation that we can provide value to customers. Furthermore, for the Millea Group which provides intangible
values such as insurance products and services, the "human power" of our employees and agents who are thepoints of contact with all our stakeholders is a vital component of practicing CSR. We believe that by gaining
appreciation from all our stakeholders for CSR practiced by employees and agents with "human power," we will beable to enhance the value of our corporate brand and, consequently, our corporate value itself will rise.

The Tokio Marine & Nichido Corporate Value Index—CSR Index
Tokio Marine & Nichido defines corporate value as the sum total of values it provides for the five stakeholders of ourcustomers, shareholders, agents, employees and local communities/society, and each year we quantitatively measurelevels of improvement made in the respective fields as a result of annual strategies and policies, by means of the"Corporate Value Index" developed by Tokio Marine in 2003 to evaluate the outcome. Measurement is made by selfassessment on a maximum of 1,000 as a total of points gained in the corresponding fields.
We will continue to take measurements with this index in the next fiscal year and will publish actual scores as"Key Indicators" for each area of Tokio Marine & Nichido's CSR initiatives that are thought to be important forour stakeholders, and will make use of them to improve our initiatives by reflecting feedback from ourstakeholders in them.

5

Corporate Governancedirectors made up of fixed remuneration and stock
options. In June 2005, the retirement benefit system
was abolished. Also, the remuneration systems for
directors of our main subsidiaries follow this schemein principle.

Current Status of Corporate GovernanceMillea Holdings has built up sound and highly
transparent corporate governance, and effectively
exercises control over each of its group companies
as the holding company.

Framework for Governance of Subsidiaries
Millea Holdings exercises appropriate control over
the operations of its subsidiaries based on theauthority it has under its shareholder's rights, andthrough management contract arrangements. It also
sets out basic policies for promotion of governance,risk management and internal auditing within theGroup, and monitors progress. Every year, anevaluation of the business performance of our
subsidiaries is carried out and the result of such
evaluation is reflected in remuneration for thesubsidiary company directors.

System of GovernanceThe below is an overview of our system of governance.
Governance Entity

Role

Composition/Tenure

Board ofDirectors

Decides important businessmatters,
supervises
theperformance of directors andbuilds an appropriate internal
control system

Generally 10 members. In
principle at least 3 members
should be directors fromoutside the company. Tenure
is for a term of one year.

Supervises the performance of
directors as an independent
organ with a mandate from theshareholders

Generally 5 members. In
principle, a majority should be
auditors from outside thecompany. At least one auditor
should be qualified as an Audit
Committee Financial Expert
under U. S. SEC rules.

Appoints
andremoves
members of the board anddirectors
andcorporate
auditors from Millea Holdings
and its main subsidiaries, andreports to the Board of
Directors on recommendations
regarding appointment criteria.

Generally 5 members. In
principle, to be more than half
made up of members fromoutside the company. The
committee chairperson to be
selected from those members
from outside the company.

Corporate
Auditors/
Board ofCorporate
Auditors

Nomination
Committee

Remuneration
Committee

Internal Control Basic Policy
Millea Holdings has set out an "Internal Control Basic
Policy"* with the aim of building a system ofappropriate internal control based on the Corporate
Law and its Enforcement Regulations. Under thispolicy, the Millea Group as the holding company has
set out the basic concepts of frameworks forsupervising business performance in each groupcompany and for promoting compliance, risk
management,internal
auditing,
information
management, and audit by corporate auditors. Millea
Holdings will continue building up and operating its
internal control system appropriately in accordancewith this policy.

Evaluates the performance ofmembers of the board anddirectors
fromMilleaHoldings and its main
subsidiaries, and reports to
the Board of Directors on
recommendations relating to
the remuneration framework.

Remuneration Scheme for Directors
The remuneration scheme for full-time Millea
company directors consists of fixed remuneration,bonuses related to the results of company andindividual performance, and stock options, withremuneration for auditors and part-time company* Internal Control Basic Policy:
The full text of this policy is given on the Millea Holdings
Homepage and in our disclosure document "Current Situation
at Millea Holdings."

Diagram of the Corporate Governance Framework(As of August 2006)

General Meeting of Shareholders
Appoints/Discharges

LinkedAppoints/Discharges

Nomination Committee

Audit
Corporate Auditors(Board of Corporate Auditors)

Board of Directors
Remuneration Committee

LinkedAccounts
Audit

Audit

Compliance Committee

Audit

Internal Audit Department

Independent Auditors

6

Agrees to
Appointments/
Discharges
Accounts Audit
Rules onSustainability

Appoints/Discharges

Management Meeting

Internal Audit

Monitoring

Risk Management Committee

Planning/Management
Department
Business Management/Monitoring

Subsidiary Companies

Millea Group Corporate Social Responsibility Report

Disaster Response Framework (Business Continuity Plan (BCP*))* BCP：
This is advance planning for the continuation or recovery
of key business operations in the event of the occurrenceof a disaster.

Head Office Disaster Response Headquarters
Framework Diagram (Overview)
Head Office Disaster
Response Headquarters

Headquarters Chief:Company President

Disaster Response Promotion Team
(Permanent Body)

Kansai Backup HQCorporate
Administration
Div.

Accounting
Div.

Underwriting
Contract
Confirmation Div.

ClaimsServicesDiv.

Customer/
Agent
Response Div.

1. Decision of Policies and Plans

Content and Application of Measures

1 Basic Policy in the Event of a Natural DisasterAs specific measures to be taken on the occurrenceof a disaster, we have prepared manuals tailored foreach rank and role, in addition to carrying out thefollowing measures:
1 Establishment of a ranked order of substitutes and achain of command
2 Stockpiling, and facilities for the location of the Head
Office Disaster Response Headquarters(a dedicated disaster telephone hotline, the in-house
intranet, stockpiling of goods for disasters, etc)
3 Preparation of alternative locations for head office. (6locations around Tokyo and its environs)
4 Information systems backing up(critical systems operational in 24 hours)
5 Introduction of a safety confirmation system
6 Cooperation with and contributions to local
communities(cooperating insofar as possible to ensure the safetyof local communities)(Principles of Action for Employees)
Steps to be taken in the event of a natural disaster are
given as follows in order of priority:
1. Ensuring the safety of employees and their families
2. Cooperating to the greatest extent possible inensuring the safety of local communities
3. Responding to customers in the disaster area, andendeavoring to continue key business functions
outside that area.
2 Risk and Loss Estimation
A scenario we have in mind is the case of our Head
Office building being shaken by an earthquake of "6Strong" on the Japanese Seismic Intensity Scale with
an epicenter directly below the capital. In the worst
case, both our Head Office building and the System
Center in Tama would become unusable for a certain
period of time.
3 Selection of Key Business Operations
Business operations designated as being of the highest
priority are as follows:• Payment of insurance claims under earthquake
insurance in the disaster area
• Payment of insurance claims and acceptance of
insurance business outside the disaster area
4 Setting Target Timeframes for Restoration
Even in cases where the Tama System Center isrendered unusable, we will continue our payment of
insurance claims and the acceptance of insurance
business outside the disaster area without cease, andwill meet the situation manually at first until thenecessary back-up systems for the payment of
insurance claims and the acceptance of insurance
business are restored in 24 hours.
5 Setting up of Organizations and Frameworks
On the occurrence of a large scale disaster, we will set
up a "Head Office Disaster Response Headquarters" inthe Head Office chaired by the company president andconsisting of directors overseeing key Head Officebusiness functions. In the case where contact cannot
be made with the Head Office for six hours or longer, a"Kansai Backup Headquarters" will be set up in the

C o rpo rat e Go ver nanceOn the occurrence of a natural disaster such as anearthquake or a typhoon, Tokio Marine & Nichido'ssocial mission as a non-life insurance company is tomake timely insurance payments to customers inaffected areas and respond to their requests, as well as
checking the safety of its employees and their families,
cooperating to ensure the safety of local communities,
restoring operations in affected areas, and continuing
key operations outside the disaster area. Tokio Marine& Nichido has made various advance preparations forthese kinds of eventualities.

Kansai Region. Furthermore, we have also establisheda "Disaster Response Promotion Team" as a permanent
body which makes a study of measures against
disasters and gives disaster drills at ordinary times andwhich supports the directors of the Response
Headquarters in case of an emergency.

Education and Training
We run different kinds of training and education programs
at each level of roles and ranks within the company.
• Meeting/desktop training for company directors fromthe company president down (every year since 1992)• Training simulations run by the Disaster Response
Promotion Team (every year since 1996)• "Disaster Response Basic Training" for all company
employees (every year)• Backup System starting up drills (every month)

Inspection & Review
Aside from Head Office disaster response preparedness
checks carried out by members of the Disaster
Response Promotion Team and internal audits carriedout by the Internal Audit Department, we also undergo
disaster response audits by external bodies and areview covering overall planning that is performed by
the management at regular annual meetings.

7

Providing Value to Our Customers: Products and Services / Human Power

Providing Value through the Stage
Expansion of Products and Services and the"Human Power" of Our
Employees and Agents
Accompanying many changes occurring in theenvironment, the risks our customers face are
becoming diversified and growing in scale. At
the Millea Group we will enhance our corporate
value not only by providing new solutions tothose risks but also by securing customer trust
through products and services offered by our
employees and agents with "Human Power."

I put "listening to what the customer has tosay" at the base of all sales activities, and thinkthat it is important to have customers identify
latent risks themselves through a dialogue withthem. Also, when providing products andservices, I think that by "listening to what thecustomer has to say" beforehand, it becomes
possible for me to provide explanations andproposals from the customer's position andraise satisfaction levels.

Tokikatsu Nishikawa,
Deputy Manager, Shinjuku Sub-branch,
Tokyo Shintoshin Branch,
Tokio Marine & Nichido

Phased Expansion of Insurance Activities and Challenging New Areas of Risk
Area of Risk

Expansion/
Reinforcementof Security & Safety

Existing Risks

New Risk Solutions

New RisksWith the corporate philosophy of "byproviding customers with the highest
quality products and services, we will
spread safety and security to all aroundus," the Millea Group has continued todevelop innovative products ahead of thetimes and have gained high appreciationfrom customers.
Into the future, we will continue meeting
our customers' diversifying needs
through the stage expansion of products
and services by making the most of theGroup's overall strength. The insurancecompanies in the Group are eager tocontribute to the realization of better
society not only by providing products
and services matching new risks andpaying insurance claims but also by
spreading "safety and security" in society
through reinforcement of precursory risk
reduction and follow-up care.

Scope of
Safety andSecurity Provided
Until Now
Provision of “Precursory” and “Follow-Up” Safety & Security

Precursory(Prevention)

Payment of
Insurance Claims

Follow-up(Care)

InsurancePhase

We will contribute to the realization of a better society through providing new value.

16
8

1.

Challenging New Risks throughProvision of Products and Services

2.

Expansion of "Precursory" and "Follow-Up" Safety and Security
that Goes beyond the Boundaries of Conventional Insurance

Developing a New Concept of Medical Insurance(Tokio Marine & Nichido)
Specialized for Diabetes

Automobile Insurance "Total Assist"

It is considered possible to put the progress of diabetes
under control or prevent its onset itself by means ofproper medical care and improvement in lifestyles.
However, until now, there has been almost no insurance
tailored to the needs of people suffering from diabetes.
As a result, Tokio Marine & Nichido has developed a
specialized insurance package "Good Tomorrows" toprovide comprehensive relief to diabetes sufferers andthose at risk of developing diabetes, by creating an
insurance package that includes the functions ofproviding accurate information about diabetes andoffering assistance functions for lifestyle improvements
in addition to offering coverage for such areas ascomplication illnesses of diabetes.

In August 2005 Tokio Marine & Nichido developed a
new automobile insurance product "Total Assist" thattakes on board the idea of amalgamating "Assistance"with the pre-existing "Insurance," in response tocustomer requests for various services in addition toexisting coverage that cover the total flow from thepayment of claims through all the aspects of "accident
prevention," "when involved in an accident," and incase of "post-accident care."Since offering this on sale, we have received words ofappreciation for this never-seen-before idea from manyof our customers, and sales have been growing at a
speed unseen in automobile insurance since theinsurance market was liberalized. We have received
many messages of appreciation from our customers
with regard to "Assistance," which we newly added toour insurance (please refer to the table below).

Public and clinical nurses provide the following
services tailored for people at risk of developing
diabetes, and diabetics:
1.Regular Hospital Visit Support Service(for people undergoing treatment for diabetes)
2.Lifestyle Improvement Support Service(for people yet to develop diabetes)
3.Telephone Health Advice (universal)
4. Information Services (universal)

Sale of Insurance that Contributes to the Spread of New Treatments(Tokio Marine & Nichido)
for Illnesses such as Leukemia
Bone marrow transplants are a well known method oftreatment for serious blood related illnesses such as
leukemia, and Tokio Marine & Nichido has continuously
supported the bone marrow bank system with such
steps as the "Bone Marrow Bank Group Injury
Insurance" it developed in 1991. Since then, medical
advances have seen the development of peripheral
blood stem cell transplantation (PBSCT) performed by
the extraction of hematopoietic stem cells fromperipheral blood taken from a donor without the needfor a full body anesthetic. In order to promote thespread of this new type of treatment, in February 2006,
Tokio Marine & Nichido in cooperation with the Japan
Society for Hematopoietic Cell Transplantation
developed "Peripheral Blood Stem Cell Donor Group
Injury Insurance." This insurance aims to promote the
donation of peripheral blood stem cells bycompensating donors for any injuries suffered from thetime of leaving one's house to their return (including any
accidents occurring due to the medical procedure of
peripheral blood stem cell extraction).

Providing Value to Our Customers

Preventive Assistance forLifestyle-related Diseases(Tokio Marine & Nichido)

Messages of appreciation from our customers:
We have received many messages of appreciationfrom our customers regarding the brand newframework of "Assistance You Can Choose When
Hospitalized" that enables customers to choose
their preferred compensation when hospitalized byan accident, including the following:•"Thanks to services like 'providing flowers' and'contracting home helpers (specialized cleaning
course)', my family that came to visit me
everyday was overjoyed"•"My son who is a high school student wasinterested in the 'alternate bed fee offer' whereby
he could move to a room and study without
being disturbed. Furthermore, I think he will also
want to take advantage of the 'bookstall
provision' of reference books because he has
exams coming up. This concept of service isreally wonderful, isn't it?"9

Providing Value to Our Customers: Products and Services / Human Power

Automobile Insurance that Supports Initiatives Aimed at
Reducing Automobile Accidents (Tokio Marine & Nichido)
Tokio Marine & Nichido began selling "Fleet Accident
Reduction Assist"* automobile insurance in October
2005. This insurance is a corporate-oriented automobile
insurance that amalgamates "Insurance" and"Specialized Consulting Aimed at Accident Reduction"offering solutions to the causes of accidents, and is a
product developed in response to customers sayingthat they want "to reduce work related to automobile
accidents" and to have "stable low cost automobile
insurance on a long-term basis." We provide strong
backup to customer initiatives to reduce accidents byproviding advice and consulting service on how toprevent a recurrence through detailed analysis of
accident causes performed by experts on footage
collected from actual risk situations taken by the latest
camera-attached drive recorders.
* Fleet Accident Reduction Assist:
We offer the three courses "A," "B," and "C" in accordancewith the number of vehicles (more than 10 vehicles) coveredby the automobile fleet insurance contract of our customers.

3.

Aiming to Be Safety andSecurity Processionals

How We Think of Our Human Power
Because the Millea Group offers the intangible
products of insurance and services, it considers thehuman power of its employees and agents that are
the contact points with our customers, and providing
customer value to be of the utmost importance.
Specifically, this relates to the need for our
employees and agents to have specialized
knowledge and motivation, and to act whileconstantly putting themselves in their customers'
shoes. By maximizing our employees' and agents'
human power, we will work hard to realize customer
satisfaction.

What is Human Power?
This is made up of the following 3 elements:
1. Abilities as Professionals
2. Energies
3. Acting while constantly considering the positionof those one is dealing with

■ Example Overview of Our Service (B Course)

Contact

Fleet Risk
Precursory
Determination

Automobile
Accidents(Involving
People/Objects)
Occur above a
Fixed Thresholdwithin the Termof Insurance

Multiple
Accident
Emergency
Response
Program** We create original accident prevention manuals and run safetymeasures training based on the analysis of accident patterns
and with camera mounted drive recorders within thecompanies of our customers.

Employee Human Resource Development Policy
At the Millea Group, our human resources are thevery basis of customer satisfaction andcompetitiveness, and we treat human resource
development as a matter of the greatest importance.
In order to develop human resources that have a highdegree of expertise in dealing with customer needs,
and that are trusted by customers for their unerring
integrity, we provide a number of systems fordeveloping abilities. By proactively developing ourhuman resources through these systems andinitiatives, we will connect this to improved corporate
value across the group as a whole.

Stage Expansion of Opportunities for Female Employees to Be Active
The Millea Group is proactively moving forward withbuilding workplaces where women can be more active.
At Tokio Marine & Nichido, we recognize that creating
an environment where motivated and able employees
of a diverse range of values are able to realize theirfull potential, irrespective of gender, is essential to
improving customer response, and we are proactively
engaging in an "Increased Opportunities for Female
Employees to Be Active" campaign. Specifically,
having the three pillars of raising female employee
career awareness, reinforcing management, anddeveloping personnel systems, we engage in a rangeof other related initiatives such as running new
training, holding forums on centralized structures,exchanging information through our intranet,proactively holding off-site meetings, holding
management training, correctly managing the human10resource system, expanding the childcare system,and so on, while continuing to reissue messages
from top management.

Holding of the "Millea Women's Forum"

Panel discussion in 2006

Creating Workplaces where People Are
Happy to Work "Job Request System"
In order to foster and develop the dynamism of ouremployees, Tokio Marine & Nichido operates the "Job
Request System" as one of our key human resource
management related systems and try insofar as
possible to help our staff realize their wishes for
assignment transfers. Under this system, there arethree courses offered. The first of these is aframework for responding to offers made within thecompany for transfers to specified fields of work. The
second is a system that allows people seeking newchallenges to freely apply for fields of work that theywould like to try working in. The third system wasnewly created in FY 2004 from the perspective ofpromoting activities of female staff, which allows
them to choose the place of work that they would liketo work in (I-Turn*１ and U-Turn placements*2). All ofthese systems achieve increased staff motivation andimprovements in work skills by allowing employees toindependently choose these systems.
The number of employees applying and the number
being accepted in this system grew sharply as aresult of proactive internal provision of information on
this system.
*1 I Turn Placements: "Support for Work/Life Balance" (ref p.34.)*2 U Turn Placements: "Career Development through Use of Our
Company System" (ref p.13.)(People)Fiscal Year

Applicants

Successful

2004

136

32

2005

189

56

2006

356

95

Employee Training / Skill Development System

Providing Value to Our Customers

In February 2006, the Millea Group held a "Millea
Women's Forum" based on the theme of "Promoting
the Activities of Women in Business" open to female
employees. This forum had the aim of deepening
understanding toward awareness of the activities ofwomen throughout society, to foster the handing
down of advice and tips from senior to junior staff,
and to connect to proactive and organized activity byall. The first part of this seminar was a panel
discussion of four female employees from section
managers and above on the theme of "In Order to
Actively Participate within the Company." Thesecond session was a lecture given by Masumi
Shiraishi, who is a
Directorat
Tokio
Marine & Nichido Lifeand Professor at Toyo
University, on thetheme of "Building
Your Own Work Skills."■ JOB Request System Participants

Tokio Marine & Nichido operates a wide range oftraining systems to develop the skills of its
employees, such as Rank-Specific Training, Optional
Training, and Specialization Training, which areenthusiastically taken up by many of our staff. In FY
2005, we operated middle leader training for the firsttime that aims to improve the expertise and market
value, as well as the fourth year training for regional
staff*１ (refer below under "Centralized Training").
Moreover, we also have systems such as the External
Qualification Support System which is a feesubsidized system to support employees in their own
voluntary studies. Also, we proactively send young
employees to overseas business schools (to obtainMBAs), law schools (to obtain LLMs*2 and to passthe New York exam), and to universities in nonEnglish speaking countries with the aim of cultivatinga staff that have a broad perspective, areinternationally minded and that possess a highdegree of knowledge. Furthermore, we also provide
information through "Tokio Marine & Nichido
University" on the company intranet.
*1 There are two different kinds of employees : regional staff (notsubject to transfers) and nationwide staff (subject to transfers).
*2 LLMs (Master of Laws):
Courses offered by graduate schools in Europe and the U.S. toacquire the necessary knowledge about legal affairs required by
Tokio Marine & Nichido.

Centralized Training
In FY 2005, Tokio Marine & Nichido held a new career
training course gathered together from all our offices
encompassing fourth-year regional staff. This training
is in order to produce even greater performance inthe workplace and successful activity by providing an
opportunity for the enrolled staff to think of their own
career in a structured manner. Around 250 people
who were gathered from around the country
deepened their personal understanding of their job
roles and painted out their career vision of "Where I
Want to Be 2 Years from Now" through debates,
practice issues and enrolling in seminars. A message
was imparted in advance of "What I expect ofMr./Ms. X 2 Years from Now" from their supervisors,
showing that they hold the enrolled participant inhigh esteem.

11

Providing Value to Our Customers: Products and Services / Human Power

4. Aiming for Work and Services Trusted by Our Customers—"Practicing Human Power"

Services and Products Provided by Our Agents"Greater bonds with our customers through sales of Super Insurance give rise to greater improvements in management quality"
In an age where insurance can be sold even over the Internet, the meaning ofagents existing has come to be questioned. Under our Super Insurance thatprovides a wide range of benefits tailored to the needs of our customers within asingle package of insurance, by selling the best fitting plan that we suggest
based on asking our customers what their needs are, this not only enables us tohave a closer relationship with our customers, but also creates a positive cycleof increasing our efforts to raise management quality in the form of greater
customer satisfaction. We hope to continue providing
Our agents
value from higher quality products through Super
Insurance by engendering greater dynamism in
exchanging opinions with our hardworking local
neighborhood agents.

Yoshikazu MiyachiCEO,
Miyachi Total Insurance Office

Support for Construction of Enterprise Pension / Retirement Allowance Systems"We want to support the future of small-and medium-sized enterprises"
In recent times, there have been great changes going on in the environment
surrounding the retirement allowance system, such as perceptions of entry
into the labor market and the large scale retirement of people from the baby
boom generation. There has been great concern for many small-and
medium-sized enterprises over how existing retirement allowances andpension systems should be reconstituted. At Tokio Marine & Nichido, we
provide an objective analysis and information on this situation, and give
support to customers in creating systems that match their own company
climate. This is challenging work, but being able to have a strong sense of
the needs of society is a powerful driving force for people involved inproviding services. It is our desire to continue to work with conviction inproviding services that resonate with our customers, while feeling a strong
sense of being helpful to our customers on a day-to-day basis.

Fumitaka Kokubo
Deputy Manager of Our Sales Management Group,401k Plan & Investment Trust Marketing
Promotion Dept.

Response to Customers Involved in Automobile Accidents"To help as if giving advice to a family member or friend"Among our customers that find themselves involved in automobile accidents,
there are many who also find the shock of a sudden accident to be
psychologically traumatic as well. We always consider that our key mission is toalleviate the concerns of our customers, but in these cases in particular, wealways act sympathetically, with a feeling as if we were giving advice to family
member or a friend. With immediate post accident response being given, we
remain in contact with our customers assuaging their concerns, even when final
resolution takes months to reach. Hearing words of gratitude from ourcustomers after a matter is resolved is a great source of encouragement to us,
and we engage in periodic education to deepen our expertise in order toconstantly be able to respond to that expectation. Also, having company
systems and frameworks that enable women to work long-term is a source ofdynamism on top of continuing work.

12

Kae Kubota
East Tokyo Claims Service Section,
Metropolitan Claims Service Dept.

Sales of Life Insurance by Professionals

Hideki Katayama
Executive Life Partner,
Tokio Marine & Nichido Life

Providing Value to Our Customers"This is not just selling insurance, but a job that involves thinking
together with a customer about their lives"
I feel that talking about life insurance with customers is joining together withthem to review their overall way of life such as how they look at their lives, andtheir thoughts toward their families. More than just the dimension of receiving
contracts, we join together to support those customers in choosing the best
lives for them, and also even after our contracts are concluded offer advice tocustomers on concerns related to illnesses and such that they may not even beable to share with their families, giving me a strong sense that this work involves
being a partner that is trusted by customers throughout every instance of theirlife. It is my sincere wish to continue having the opportunity to think together
with customers in this way about their lives into the future, and to be someone
thought of as a trusted partner that they were glad to have met.

Improvements in Customer Satisfaction by an Overseas Female Employee
Improving Customer Satisfaction through "Hou Ren Sou"Ann Ginn
Underwriting Manager,
Chicago Branch,
Tokio Marine Management

Listening to and understanding clients' needs and recommending the insurance that they
are truly looking for are essential to maintaining high levels of customer satisfaction.
Focusing on face-to-face communications, we use the principles of Hou Ren Sou (report,
contact and advise) to develop strong relationships with brokers and clients, whoappreciate a relationship with their underwriter. While the Underwriting group has only
been in operation for six months, we are already experiencing a substantial increase in
new business submissions. I came to Tokio Marine for many of the strengths that attract
both employees and customers; however, the most important reason is that our corporate
philosophy and values strongly match my personal values. I believe that it is only throughpositive employee and customer focus that we achieve corporate success. Furthermore,
many of our indigenous brokers and customers that do not know Tokio Marine well, havetaken notice. They resonate with our strong customer focus and are quickly spreading theword that we are a strong, vital competitor in the insurance industry.

Career Development through Use of Our Company System"New Tasks and Human Relationships Connecting to Enhanced Motivation"

Kaori Sobe
Assistant Manager of Sapporo Chuo Branch,
Operations GroupI am currently taking advantage of "U Turn" placement that is an in-housesystem allowing the company staff to further their careers by doing new work in
an area different from their previous location, or work that suits them. The
positives I can get out of transfers are that by gaining experience in the work ofboth a sub-branch office and a branch office supporting sub-branch offices, I
can develop multiple perspectives on the same tasks, and by looking after new
areas of work that I could not attempt in a regional office, such as planning formeetings and operations, I am able to expand the scope of my work. Also, there
I found great personal plusses from the stimulation I felt in keeping important
links with members from my previous workplace while forging personal
relationships in my new one.

13

Two-Way Communication

Improvement of Initiatives that Build Trustthrough Two-Way Communication
In order to raise our corporate value
through the practice of CSR, it isessential to inform all our stakeholdersof our initiatives and at the same timeengage in two-way communication totake on board feedback to improvethose initiatives.

Over the telephone, words are relied on to
make up for what cannot be seen. To avoid
conversations with customers becoming
one-sided, first I focus on listening, and thenI devote myself to providing easy tounderstand information. I aim to provide
dedicated responses so as to earn the trustof as many customers as possible, andreceive words of praise.

Akiko Mori
Customer Center Division Assistant Manager,
Corporate Marketing & Planning Dept.,
Tokio Marine & Nichido

Misuzu Imai
Gifu Customer Center,
Corporate Marketing & Planning Dept.,
Tokio Marine & Nichido

Visits to Sales Frontline by the Company President
Over the course of five years that Kunio Ishihara has served as Company President of Tokio Marine &Nichido, he has visited nearly every company office and department across all 47 prefectures of Japan,
and visited 22 countries and regions abroad building up extensive dialogue with company employees. By
listening intently to what company employees have to say, as well as offering his own perspective from the
top in down-to-earth terms, this exchange of opinions has added to the energies of our employees.
Comment from President Kunio Ishihara
My motto is "the actual place and the actual thing"("all solutions lie in careful observation of actual
materials and conditions"), and consider going to thefront lines and talking directly to employees to be of
the utmost importance. Sometimes stern words cancome out as a result of the situation on the front lines,
and sometimes people talk to me with bright eyes ofthe sense of fulfillment they get from their work. I thinkthat this kind of direct communication is of great help
in narrowing the distance felt between management
and employees. Furthermore, there are also times
when I feel that hearing the words of company
employees lends me a greater sense of courage. I
intend to continue on in this approach.

14

1.

Improving Customer Satisfaction
through Dialogue with Our Customers

Largest Scale in the Industry !
Enlargement of Our Customer Centers
At Tokio Marine & Nichido, we built a 200-boothcustomer center in Gifu City in October 2005, which,
together with the existing facility in Toshima Ward inTokyo, adds up to the customer center framework
leading the industry in scale (450 booths).
Furthermore, in conjunction with the creation of thisnew center, we have also expanded our service hours
and introduced Sunday service to achieve evengreater convenience to our customers.
■ Consultation and Inquiries Gathered through Our Customer Centers (FY2005)

Automobile
Liability
Insurance

Tokio Marine & Nichido gathers customer feedback at
customer centers. Where any feedback received isrecognized as requiring a company-wide response,such feedback is forwarded to the head office as asuggestion for improvement. In FY 2005, 865
suggestions for improvement were made, with 204
put into action.
■ Examples of Products and Services Developed/Improved Based on Customer Feedback
Examples of Developments/Improvements (Partial)

New
Products/
Services
Developed[Creation of a Special Customer Page on Our
Homepage] We opened "Policyholders' Special Page"on our homepage that enebles our policyholders togain access freely to services and information theyoften want to know. This offers the following functions:checking of contract terms, change of addresses
interface, mail magazines, etc.

Improvements
on Existing
Products
and Services[Growth in the Acceptance of Overseas Travel Injury
Insurance on the Internet] Applications for Overseas
Travel Personal Injury Insurance on the Internet had
previously been possible for individual customers only,
but now we have also added "spouse/family type"applications (up to 5 people in all).

Two-Way Communication

Others174,922

Use of "Customer Feedback" Suggestion Offering System

Automobile
Insurance

441,200

Fostering of Two-Way Communication
through Our Homepage

94,040

Total

710,162cases

Opinion and Consultation Interface on Our Homepage
At Tokio Marine & Nichido, we have installed an"Opinion/Consultation Section" on our homepage
which offers a 24 hours a day and 365 days a year
interface for customer feedback and consultation.
Throughout FY 2005, we received approximately
6,100 items of feedback and consultation from ourclients relating to improvements and expansion offunctions on our homepage, opinions regarding
improvements in our products and services, andquestions relating to contract terms and provisions.

Utilization of Our "Customer Feedback
Gathering & Application System"
In order to record, report and analyze customer
feedback, beginning with complaints, gathered
through our regional sales offices, customer centersand such, Tokio Marine & Nichido and Tokio Marine &Nichido Life set up a "Customer Feedback Gathering& Application System" on our in-house intranet in
July 2005. This system enables us to share
information throughout the companies, and, at thesame time, improve our products, services andoperational processes.

The Tokio Marine & Nichido homepage was renewed
as of April 2006 based on the concept of "Continuing
to Grow Together," in order to foster increased twoway communication (dialogue) with all our users. On
this new homepage, we plan to expand the functions
and role of the insurance industry not just in
emergencies, but also through providing suchservices as precursory accident prevention services
and post-accident care services, as well as toprovide constant "Safety and Security" to everyone
through a communication portal focused on the userinteractive content given in "Anshin World."[Main Content]"I See" Insurance Guide
Products and Services
Environment and Society
IR Information
Anshin World
Career Information
Company Information

•
•
•
•
•
•
•

Internet site of Anshin World

15

Two-Way Communication

2.

Timely and Appropriate Information
Disclosure and Dialogue with Shareholders

IR Activities

3.

Promotion of Communication with
Domestic and Overseas Employees

Use of In-house Satellite Broadcasts

One of the most important roles of Millea Holdings is
to engage in continuous dialogue with shareholders,investors as well as intermediary analysts.
In
addition to company president Kunio Ishihara giving
briefing sessions (four times) such as results briefings
and a briefing session for investor meetings
throughout Europe, the Americas and Asia (37 in all),and furthermore, a briefing session for individual
investors (once), Millea Holdings also had other suchmeetings with different IR Directors for a total ofmore than 300 meetings with investors during FY
2005. Through these initiatives, not only does Millea
Holdings convey the state of its corporate activities
and strategy, but we also have the opportunity toobtain precious feedback from shareholders,investors, analysts and other such market
participants on their opinions and suggestions, andwork hard to incorporate these into our corporate
strategy and such.

Tokio Marine & Nichido uses in-house satellite
broadcasts on "CSN (Communication Satellite
Network)" to broadcast all kinds of informational andtraining programs, customer-oriented seminars andsuch to all our nationwide sales offices, the Millea
Group companies and agents on a daily basis. This
also plays an important role in cases of large scaledisasters. In FY 2005, a total amounting to
a p p ro x i m a t e l y 2 , 1 0 0 h o u r s o f p ro g r a m m i n g
was broadcast.

Incorporation into Socially Responsible
Investment (SRI*) Funds
Communication with Overseas Employees
The Millea Group receives favorable evaluations from
CSR rating agencies, and is included in many SRI
Funds, and domestic and overseas SRI indices. We
also strive to improve our CSR initiatives and suchbased on the feedback reports received from various
rating agencies.
* SRI:
An investment approach which, in addition to conventional
financial criteria, evaluates and selects companies based onsocial and ethical, as well as environmental aspects such aslegal compliance, employment practices, human rights,
consumer issues, and contribution to community, while
seeking stable returns.
■ Current Level of Involvement in SRI Funds
Fund Name

Overseeing/Operating Company

UBS Japan Equity Fund, Eco Japan,(commonly referred to as "Eco Hakase")

UBS Global Asset Management

Eco FundDLIBJ Asset Management

Eco Balance(commonly referred to as "Sea and Sky")

Mitsui Sumitomo Asset Management

Sumishin SRI Japan Open(commonly referred to as "Good Company")

Sumishin Asset Management

Note: This level of fund involvement is based on the latest operational
reports taken from June 2006.

■ Adopting

Indices

MS-SRI
Morning Star Socially
Responsible Investment Index(Japan)16

FTSE4Good(UK)

With the expansion of our overseas business, weconsider it important to share a common vision
throughout the Millea Group, and so in August 2005
we started sending out a message through ouroverseas department leaders calling for the"thorough permeation of our corporate philosophy"
throughout our overseas departments, aimed at our
frontline employees working throughout the world.
We received comments from employees reading thismessage that "this helped us to understand thethinking at head of the company, and the directionthat the group is moving in," and "this gave us asense of the personality of company leadershipwhich deepened our sense of proximity," making thisof great help as a tool for drawing in reader opinions
and furthering the taking-up of head office initiatives.

4.Tokio Marine & Nichido First CSR Dialogue
In May 2006, Tokio Marine & Nichido held its firstever "CSR Dialogue" inviting six key individuals fromdifferent areas. An exchange of views was held on
the themes of "Expectations of Tokio Marine &Nichido's CSR," and "Opinions Regarding Specific
CSR Activities."function of the non-life insurance industry which is "riskassessment ability", and contribute to society throughits core business with a set of high level expertise.

Human Power
When considering how to balance CSR and profits inthe medium term, human power at the managementlevel is also needed. Performing CSR with a sense ofresolution demonstrates the company's dignity andraises the value of its corporate brand.

Two-Way Communication

Two-Way Communication

Enterprises exist within a society, and in this context it
is necessary to draw attention to one's own activities
and proactively disseminate such information. It isthrough these that a partnership with society is born,generating new value and resulting in contribution to
the healthy growth of society.

Contributions to Local Communities and Society■ Guests Present at the Dialogue(in Japanese syllabic order)

Nami Otsuka
Service Operations/Business Promotion General Manager of IBM Japan

Nobuo Takahashi
Professor at Tokyo University Graduate School Economic Research Department

Nobuko Takahashi
Lifestyle Economy Journalist

By performing philanthropic activities that are closely
connected with regional areas, it is possible to newly
conceive demand for the development of products notnoticed in the course of ordinary sales activities, and toobtain a diverse range of values, not to mention the
merits for the people involved and of course thecompany. We would like to see efforts to transform thecorporate culture into one where people who work
hard are able to foster initiatives to make contributions
to society.

Yoko Takahashi
Chairperson of Japan Philanthropic Association

Peter David Pedersen
Chief Executive of E-Square Inc.

Yoshihiro Fujii
Professor at Sofia University Graduate School Global Environmental Studies Department

The below is a summary of main opinions expressed
regarding each area of Tokio Marine & Nichido's CSR
initiatives:

Products and Services
Businesses should perform business-like CSR, and it ismost important to focus on performing CSR throughone's core business (providing products and services).
Tokio Marine & Nichido should carry out CSR in its own
distinct manner, by comprehensively refining the core

"In Light of Opinions Received through Dialogue"
On this occasion, we have had our first ever opportunity
as Tokio Marine & Nichido to hold a CSR dialogue inearnest. On the day we went all the way through fromdiscussing policies and plans for CSR initiatives, tospecific CSR activities, engaging in a lively exchange of
opinions giving us a number of valuable opinions andcritiques that could only be obtained through direct
discussion. In that sense, I feel that this was anextremely meaningful dialogue. We will of course
incorporate the opinions gathered on this occasion into
the CSR activities of the Millea Group. Furthermore, as a

Global Environmental Protection
We would like to see more products developed that
contribute to society by enabling the promotion of broad
reductions in environmental burden while being of
economic merit. Attention can also be drawn to thecompany's consistent approach to preventing global
warming through the CO2 sequestering effect of its
mangrove reforestation work (through CO2 absorption),along with the cuts achieved through its core business.

ComplianceWith increasingly complex products and operations,
isn't this going to result in problems such as unpaid
expense claims and legal violations? There is a need toreturn to easy to understand simple structures.

'good corporate citizen', we wish to proactively
undertake two-way communication with all our many
stakeholders, and practice CSR that is distinctive of theMillea Group in character, while providing an appropriate
disclosure of information, leading to contributing to thegrowth of prosperity and wellbeing and society as a whole into
the future.

Toshiro Yagi
Senior Managing Directorof Millea Holdings(then, Managing Directorof Tokio Marine & Nichido)

17

Contributions to Local Communities and Society

Aiming for Harmonious
Coexistence with Local
Communities & Society
The business activities of the Millea Group
become possible only with the support from ourcustomers, agents and people in local
communities. In order to exist as a partner of
local communities and society, we will continue
to promote philanthropic activities firmly rooted
in local areas in the future.
As the organizing office of the "Pink Ribbon
Drive,"* we have been progressing with awide range of initiatives. Women who arebusy with child-raising and work are often
prone to setting aside their own matters forlater. However, we want to spread themessage that breast cancer is not justsomebody else's problem, and we areanxious that people undergo an examination
for their own sake and those important tothem, regardless of how busy they are.
* Pink Ribbon Drive
Awareness-raising activities that stress theimportance of early detection of breast cancer,
and the need for medical examinations.

Hisae Keino
Assistant Manager, Corporate Administration Group,
Personnel Planning & Corporate Administration Dept.,
Tokio Marine & Nichido Life

Policy on Community/Social Philanthropy
The Millea Group considers it very important to demonstrate "harmony with the people of local
communities and society" through action, and engages in a broad range of philanthropic activities
at the grassroots of communities in all regions of the world.
Operational Policy
We define philanthropic activities as: "Activities we voluntarily do in areas not related to our coreareas of business, for promotion of the public interest without expectation of any direct payback
in return."

We focus on the three major areas of"social welfare," "international exchange(international cooperation),"and "global environmental protection."

We support "community andphilanthropic activities"
in each region.

18

We support the volunteer
activities by our employees.

1.

Practicing Philanthropy as a Memberof Local Communities and Society

Environment/Community Philanthropy Promotion Month,and the Presidential Commendation Award System
In FY2004 Tokio Marine & Nichido started an"Environment/Community Philanthropy Promotion
Month" so that volunteer activities by our employees
may take root in the company, and offers "Presidential

Kyoto Branch, Keiji Automobile Industry Production Dept.,
Keiji Hokuriku Claims Service Dept., and Kansai Production Dept. IV
We invited a local fire department rescue chief as a speaker ina "Seminar on CPR and Haemostasis for Adults Including theUse of AED"* given on several occasions, with 70 participants
mainly from among our employees, employees from affiliatecompanies, agents, and local store associations. Furthermore,
following the seminars, we installed an AED device on the firstfloor lobby of the Kyoto Building.

Kagoshima Branch
Inviting people from our partner companies along, our Naze
Office sponsored the clearing of rubbish from a 1km longcoastline in Ohama Marine Park.
This year was the third time that
we ran this activity, withwidespread participation f r o magents belonging to our office.

Sapporo Central Branch
As joint activities for part of the Philanthropy Promotion
Month, all sections and sub-branches organaized a number ofwell though-out charity events (Book Charities, Coffee
Charities, PET Bottle Charities,etc). In all, a total of 414 people
participated in these activities(185 employees and contract
workers, 229 agents), andproceeds were donated to the
Hokkaido Office of the Japan Receiving a Silver Award of Meritfrom the Japan Red Cross.
Red Cross.

Chemical Industry Production Dept. / The Sri Muang Insurance
We made 400 novelty umbrellasand donated them to children in
Thailand with the cooperation of the
Sri Muang Insurance, our local
company, the Thai office of the NPO
Shanti International Volunteers, andour customers.

Ehime Branch/Takamatsu Branch/Tokushima Branch/Shikoku Automobile Industry Production Dept., Shikoku
Claims Service Dept., Nishi-Nihon Marine Industry
Production Dept., Commercial Lines Claims Dept. Marine
Claims Service Section., and Tokio Marine & Nichido
Life's Takamatsu Sub-branch and Ehime Sub-branch.
Around 120 members from our offices and departments in the
Shikoku region simultaneously cleaned up coastal areas
around Shikoku (cleaned
areas: Matsuyama/Baishinji
Coast, Imabari/Odahama,
Niihama/Marine Park, Uwajima/
Warejinjakeidai, Takamatsu/
Yashimaishiba Coast, andTokushima/Komatsu Coast).

Contributions to Local Communities and Society* AED ( Au toma t e d E x t e r na l
Defibrillator):
A portable electronic device
that diagnoses and treatscardiac arrest by reestablishingan effective heart rhythm byelectric shock to the entire
heart muscle.

Awards" for initiatives from among various activities
which were performed in different regions each fiscal
year and which were considered to be well connectedwith local communities and society and to have earned
high plaudits locally.
In FY 2005, there were 245 such activities held across
our offices and departments nationwide, with a total of
318 including those of all our group companies andoverseas offices. From among these, 7 activities
received Presidential Awards.

Tokio Marine & Nichido Communications (TCC)*
TCC Shinjuku started a sales stall for bread made at the"Swan Bakery Ochiai Branch" (Rehabilitation Facility for
Sufferers of Schizophrenia) on the third Thursday every monthwith the cooperation of around 180 staff members from the
TCC Shinjuku Office. This isalso the first group company
to run a gift matching schemeand hold various charity
events, making donations to
the Japan NPO Center andAshinaga Scholarship.

Tokio Marine Newa Insurance (Taiwan)*
We are engaged in directing
traffic for children crossing
intersections
toprotect
elementary school children
for traffic accidents. Asidefrom that, we also support
the running of computer
maintenance, PTA, libraryservices and weekend study
classes in elementary schools.

* Presidential Awards to group and overseas companies, are given on
the basis of overall company initiatives rather than single
initiatives alone.

19

Contributions to Local Communities and Society

2.Coexistence with Local Communities and Society
Support for the Pink Ribbon Drive
Tokio Marine & Nichido Life supports the Pink Ribbon
Drive through the NPO J.POSH (Japan Breast Cancer
Pink Ribbon Drive). In FY 2005, this was run mainly in
October as a street campaign across 88 locations
nationwide. Aside from this, the company organizedawareness raising seminars by a J.POSH lecturer (in34 locations nationwide),
provided support for the
Kid's Program held by
J.POSH, and put up
campaign messages on
the walls of the Head
Messages on the walls (during the
Office building.

Ties with the Sawayaka Welfare Foundation
Tokio Marine & Nichido, aiming for the"Establishment of a New Interactive Society," hasjoined with the NPO Sawayaka Welfare Foundation in
supporting its efforts to promote initiatives forsupport for the elderly with help from regional
communities and working people. You can haveaccess to "Nationwide Volunteer Network
Information" of this NPO from the Tokio Marine &Nichido homepage.

Disaster Relief
The Millea Group has provided support through the
donations of money and goods by its groupcompanies and employees.

campaign period in FY 2005)■ Donation Recipients and Content (by Tokio Marine & Nichido)

Support for Fostering of Youth Development
Tokio Marine & Nichido supports the fostering ofyouth development by co-sponsoring the "JOC
Junior Olympic Cup Swimming Tournament", andalso acts as a special co-sponsor of the "Japan Trackand Field Tournament," as well as "Japan Junior
Track and Field Tournament."
Also, the Tokio Marine Kagami Commemorative
Foundation provides scholarships for Japanese
university students as well as graduate exchange
students from universities in ASEAN countries. The
Tokio Marine Sports Foundation supports regional
sports development, and the Tokio Marine & Nichido
Educational Development Fund provides support forschool education as well as children of traffic victims.

Support for the Special Olympics
Following the participation of volunteers from ourNagano Branch in the operation of the Winter Special
Olympics (SO) held in Nagano in February 2005,
Tokio Marine & Nichido now supports SO Japan as
an official sponsor for three years beginning inNovember 2005. Kayoko
Hosokawa, the former
chairperson of SO Japan,
gave a presentation in
February 2006 that led tothe proactive participationof many of our employees
as volunteers.
Volunteer activities at the 9thSpecial Olympics in Tokyo

20

Recipient

AmountContent of Support

American Red Cross

10 Million Yen

Support in response to Hurricane
Katrina that struck Southernpart of U. S. A. in August 2005

NPO AMDA(Multinational Doctors’ Group)

NPO AMDA(Multinational Doctors’ Group)

Miyazaki DisasterReserve Center

3.71 Million Yen
3.86 Million Yen

Relief for the earthquake inPakistan in October 2005−

Donation of mineral water as
relief for damage suffered by
Typhoon No. 14

3. Philanthropic Activity Support Framework
Volunteer Activity Support System
The Millea Group has a Volunteer Activity Financial
Support System*1, Gift Matching System*2, Volunteer
Work Leave System* 3, and a Bone Marrow Bank
Leave System in place as systems to support
volunteer activities.
*1 Volunteer Activity Financial Support System:
A system of providing financial support for NPOs and such thatrun volunteer activities that our employees are involved in.
*2 Gift Matching System:
A system whereby the company matches donations made byemployees of their own initiative.
*3 Volunteer Work Leave System:
A time support system for volunteer work by employees.
■ Achievements of Our Support Systems
System

FY 2005

Volunteer Activity
Financial Support
System13 Cases(from Tokio Marine & Nichido)

Gift Matching
System42 Cases, 5.1 Million Yen(from Tokio Marine & Nichido, Tokio Marine &Nichido Life, and Tokio Marine & Nichido Communications)

Volunteer Work
Leave System

60 People(from Tokio Marine & Nichido, Tokio Marine &Nichido Life, and Tokio Marine Asia)

4.

Practicing Philanthropy as a Memberof the International Community

Support for Children in Thailand
Since 2005, Tokio Marine & Nichido, Tokio Marine
Asia, The Sri Muang Insurance, and Millea Life
Insurance have offered support by way of educational
materials and tuition support in partnership with theThai Social Welfare Council for 280 junior highschool, high school and university students from all
across Thailand who have trouble attending schoolfor economic reasons. Each year, a scholarshipaward ceremony and two-day overnight camp is held,
and representatives from all four companies
participate in the camp with their local employees.

Reforestation Activities in Hong Kong
Tokio Marine & Nichido (Hong Kong) has supported in
the Saikun 5 Year Reforestation Program of the NPO
OISCA. This program has been in operation since2001 with the aim of protecting the environment
through the reforestation and maintenance of trees.
In FY 2005, employees and their families participatedin the tree maintenance work.

Reconstruction of Schools in India
In order to help children who were victims of the
Indian Ocean Tsunami, IFFCO - TOKIO General
Insurance rebuilt four schools with a total of
2,925,397 Rupees (approx. 7.3 million Yen) gatheredfrom throughout the Millea Group companies.

Support for the Pink Ribbon Drive in Malaysia

Contributions to Local Communities and Society

In 2005 Tokio Marine Insurans (Malaysia) participated as
the main sponsor in the Pink Ribbon Drive run jointly by thePantai Hospital and local businesses, and received acommendation from the Malaysian government for its
support. Throughout
the period of thestreetcampaign,
breast cancer screening
and consultations with
doctors were offered
free of charge.

Initiatives in Regions around the World
There are also an abundance of volunteer
activities carried out by our employees in areas
outside Japan. Below are a few of such examples.

Collection Boxes (Singapore)
Tokio Marine Asia has 10collection boxes in locations
throughout its group companies’
offices in Asia that staff returningfrom business trips can put theirleftover coins and changes into.
Money gathered in these boxes isdonated to NGOs through 10
group companies.

Green Day *1, Jeans Day *2 (America)
Tokio Marine Management has set up its own Green Day
and Jeans Day as corporate philanthropy.
*１ G r e e n D a y :Tokio Marine Management has developed environmental
protection initiatives that they can practice on a monthly
basis. Example of initiatives include the handing out
mugs to cut down on the use of disposable cups.
*２ Jeans Day:
Tokio Marine Management allows its staff to wear jeans
for a day on the final Friday of each month, in exchange
for a donation of five dollars. The money collected is
combined with a matching donation (refer to P20) andcontributed to various charities each month.

Donation of Old
Stamps (Australia)
Employees at Tokio Marine Management(Australia) gather old stamps throughout theyear. These stamps with old stamps from theHead Office are donated to the Japan
Overseas Christian Medical Cooperative Service.

Tokio Marine Angel (Brazil)
Tokio Marine Brasil Seguradora has had an in-housecommunity philanthropic organization called "Tokio
Marine Angel" in place since2003 that is engaged in
activities of donating foodandclothing
totheunderprivileged four times ayear at such times as
Christmas and Easter.

21

Global Environmental Protection

Initiatives Dealing withEnvironmental Issues throughOur Core Business
Global environmental issues can beconsidered the greatest risk now facing
mankind. In addition to reduction of ourcompany's environmental burden, we will
spread safety and security to the global
environment
through
contributions
utilizing our business characteristics
such as investment and insurance.
Tiny saplings which we plant one by one witha wish through the "Mangrove Reforestation."In the course of the "Green Classroom," weshared the importance of the global
environment with children who will shoulder
the future. Dreaming of the healthy
development of both saplings and children, ofthe "Forests of the Sea" and of the days when
our wish spreads throughout the world, we
will continue with initiatives aimed at theconservation of the global environment.

Atsushi Yasuda
Deputy Manager,
Production Section 2, Production Dept. 5,
Tokio Marine & Nichido

Mitsuko Hamada
Kawasaki Claims Service Section,
Kanagawa Claims Service Dept.,
Tokio Marine & Nichido

Environmental Philosophy / Environmental Policy of Tokio Marine & Nichido
Environmental Philosophy
Adopting the conservation of the global environment as one of its key management policies,
Tokio Marine & Nichido recognizes that it is an important responsibility of all humans andcompanies in the present world to protect the environment. Tokio Marine & Nichido commits totaking up the task of bringing about a society where sustainable development is maintained
through the efforts of all employees throughout the entire range of our business activities, in orderto improve and keep harmony with the environment.
Environmental Policy
Tokio Marine & Nichido has established the following policies and will make every effort to realize
them in all areas of its activities.

1

Preservation of the Global Environment through the Insurance Business

2

Effective Use of Resources and Energy

3Compliance with Environmental Laws and Regulations

4

Continual Improvement of the Environment and Prevention of Pollution

5

Promotion of Environmental Awareness-raising and Philanthropic Activities

The above policies will be made well-known to and understood by all employees and released to the public.
(October 1st, 2004)

22

1.

Promotion of Consideration for the Environment
through Insurance and Investments

workshops, there were more than 160,000 cases of
bumper repairs and the use of recycled parts in FY
2005.

Involvement of Insurance Companies in Environmental Issues
The Millea Group has a track record of producing awide range of environmentally considerate insurance
products and services as well as investments andloans with a philosophy enthusiasm for contributing
to global environmental protection through our core
insurance business (including financial services). We
will continue into the future broadly expanding ourenvironmentally considerate insurance products suchas automobile insurance, development of products
and services dealing with environmental risks such as
climate change and soil pollution, and financial
services aimed at environment-related businesses.
At the same time, we will also continue working
toward reducing the environmental burden of ourbusiness activities.

Support for the Development of Clean Energy
Tokio Marine & Nichido has been providing a Wind
Condition Risk Hedging Program since 2001 thatuses weather derivatives.* This program offers
business stability to wind power generators, which
protects the profits of investors in these power
generation enterprises and, moreover, contributes
to the development of clean energy by wind
power generation.
* Weather Derivatives :A financial product (derivative) of Tokio Marine & Nichido withthe aim of evading customer risks faced in the areas of unusualand variable weather.

Investments in Environmental Ventures
Promoting the Spread of Environmentally Friendly
Automobiles through Our Core Business
Tokio Marine & Nichido offers 1.5% discounts on
auto insurance for low pollution, low fuelconsumption and low emission vehicles with the aimof promoting the spread of environmentallyconsiderate automobiles through insurance. In FY
2005, there were approximately 5.43 million cars
entitled to the discounts, representing an increase toaround 40% of all cars insured.
Corresponding Vehicles

Global Environmental Protection

Condition ofApplication

In FY 2005, with the aim of supporting and fostering
the growth of environmental businesses, Tokio
Marine & Nichido invested in 5 companies including awind-power generation company, a consulting
company concerning waste collection, and acompany utilizing water resources by using purified
ground water. Since theyear 2000, we haveinvested a total of 1.1
billion yen with concrete
results such as companies
appearing that have held
share flotations.

地
球
環
境
保
護

Hybrid vehicles, methanol fueled vehicles, compressed
Low Pollution natural gas (CNG) vehicles. Vehicles entitled to relief
from Vehicle Acquisition Tax because of the kind of fuelVehiclesthey use.
High Mileage Vehicles meeting target mileage standards, and that areentitled to relief from the Vehicle Acquisition Tax.
VehiclesLow Emission Vehicles complying with the new exhaust regulations since2001, or that are entitled as being low emission vehicles.
VehiclesEnvironmental Consideration for Repairs of Automobiles
There are around 1.2 million cases each year of
repairing automobiles insured with Tokio Marine &Nichido. In the repairs of automobiles, the first aim isto restore them to pre-accident conditions, but wealso encourage repairs "friendly to the environment."
Specifically, we recommend the reduction ofindustrial waste and the promotion of the efficientuse of resources by continuing to use damaged parts
where they can be repaired instead of throwing themaway, and by using recycled parts when damaged
parts cannot be repaired. As a result of our
examination of repairs along with the understanding
and cooperation of users and maintenanceParticipation in Carbon Disclosure
Project 4 (CDP4)The Carbon Disclosure Project (CDP) is one where
institutional investors from around the world pull
together calling on leading international businesses
to disclose information on their response to global
warming and climate change issues. Tokio Marine &Nichido assented to this project and has participatedin it since CDP3 (2005). Corporate awareness of thisproject has risen sharply, with CDP4 in 2006 showing
marked growth in the number of businesses covered
over from 500 in the previous year to 1,800, and also
in the number of investors from 155 (with total
operating assets worth approx. 21 trillion U.S.
dollars) to 211 (31 trillion U.S. dollars).

23

Global Environmental Protection

2.

Practice of Environmental Education andAwareness Raising Aimed at Society

Support for the "Research on the
Scientific Basis for Sustainability" Project
Tokio Marine & Nichido has given across-the-board
support to the "Research on the Scientific Basis for
Sustainability" project since April 2005. 170 scientists
and experts from Japan and abroad participate inthis project, combining the latest top level knowledge
relating to challenges facing the global environment
with the aim of analyzing and evaluating the current
situation while communicating this to lay readers inan easy-to-understand manner. With regard to thefinal outcome of this project, a symposium was given
in October 2005 with thebacking
of
the
Nihon
Keidanren, followed by asecondsymposiuminNovember aimed at business,
and another symposium
given in December for thegeneral public that provided
information on their findings inan easy-to-understand manner.
http://www.sos2006.jp/english/
rsbs_summary_e/about-rsbs.html

The main report,"Science on Sustainability 2006"

Open Course at Peking University
Tokio Marine & Nichido, in conjunction with "Peking
University and Waseda University Joint Courses"
became the first Japanese business to set up a
regular course of study at Peking University
beginning in September 2005. The course title is"Sustainable Development in China- Now and the
Future," and in its first year of operation in FY 2005
took up the topic of the "environment" which is ofgreat interest at present in China, with seminars
across a total of 15 lectures given by experts andpeople in government. We received feedback frompeople taking the course at Peking University suchas "this was meaningful in broadening my outlook
on the environment" and "this gave me greaterawareness of the environmental issues for China's
growth," and proved to be a good opportunity tothink about the global environment. Furthermore,as this course is an open one available to thegeneral public, there was participation from people
involved in such areas as Chinese Environmental
NPOs, governmental agencies and the media. The
second year of this course is due to begin in
September 2006.

24

Presentation Given at the UNEP FI International Conference
In October 2005, Tokio Marine & Nichido was anattendee at the UNEP FI (United Nations Environment
Program Finance Initiative) International Conference
held in the United Nations Building in New Yorkjoined by over 160 financial institutions from aroundthe world. Shunpei Okada, Planning Group Leader of
the Commercial Lines Underwriting Department at
the time gave a presentation at the session on "Useof Weather Derivatives towards a Sustainable
Society" discussing the theme of weather-based risk
and hedging, and also presented an overview of the"Research on the Scientific Basis for Sustainability"
project that Tokio Marine & Nichido supports.

Other Environmental Awareness-raising Activities
Tokio Marine & Nichido carries out a wide range ofenvironmental communication and awareness-raising
activities going beyond those given above.
■ Table: Other Significant Environmental Awareness-raising Activities
Other Significant Environmental Awareness-raising Activities
Display at "Eco-Products 2005": We held a display for the third year running
at Japan's largest general environmental exposition held at Tokyo Big Sight.
[FY 2005 Initiatives]• We put up a panel display and showed videos on our environmentally
related products, our mangrove reforestation project, "The Green
Classroom—the Mangrove Story (refer to page 27)," and the "Research on
the Scientific Basis for Sustainability Project."
Marunouchi Environmental Civic Forum: Held jointly by the three companies
of Japan Airlines, Mitsubishi Corporation and Tokio Marine & Nichido since
1993 for the general public to hear lectures on contributions towards global
environmental issues.
[FY 2005 Initiatives]• 40th "Living with the Forest, Learning from the Forest" (Lecturer: Hiroshi
Yagyu)• 41st "Looking at the World from Antarctica" (Lecturer: Yumi Nakayama)• 42nd "Looking at the Environment through Large Trends—How do we
Understand and How do we Respond?" (Lecturer: Itaru Yasui)
Holding of an "Environmental Seminar": Seminar given on environmental themes.
[FY 2005 Initiatives]• Final report of the "Research on the Scientific Basis of Sustainability" Project
and a discussion on the topic of "The Relationship between the Economy
and the Environment—How to Incorporate a Value of Nature into an
Economic System?"
Publication of the Environmental Magazine "Talisman Special Edition": We
publish a magazine giving information on developments in overseas
environmental law and business-oriented explanations of environmentally
related topics.
[FY 2005 Initiatives]• "The Kyoto Protocol and Business" (Japan Edition)• "Chinese Environmental Regulation and Japanese Business Solutions"(Asian Edition)
Other Environmental Awareness-raising Aimed at Employees and Agents:
Promoting environmental awareness among our employees and agents using
all available media and the intranet.
[FY 2005 Initiatives]• Publication of "Environmental Topics"• Listing environmental articles in our in-house and agent magazines.

3.

Reduction of Environmental Burden
Associated with Business Activities

Participation in "Team Minus 6%"*
Tokio Marine & Nichido participates in the global
warming prevention citizens' movement of "TeamMinus 6%," and practices appropriate temperature
setting for cooling and heating, green purchasing,eco-drive and other specific activities that lead tominimizing the use of energy and resource. We
proactively develop these drives through the use ofposters, in-house satellite broadcasting, and inhouse magazines, in order to raise employee
awareness. Furthermore, Kunio Ishihara, Presidentof Tokio Marine & Nichido also participates in"Team Minus 6%" on an individual basis.
* Team Minus 6%:
A national project to realize Japan's targeted figure of reducing
greenhouse gas emissions by 6% under its Kyoto Protocol
obligations in order to prevent global warming.

Reduction of Paper Consumption through Developing
IT Solutions for Extension of Insurance Applications
Tokio Marine & Nichido has developed and is
promoting services provided through a systemcalled "e-ZONE" for existing corporate auto
insurance customers (automobile insurance
handled as groups) to make renewal applications

on the Internet. In the past, renewal applications
were made predominantly on a paper basis fromthe notice of expiration date to a contractconclusion. By doing this on the Internet, we areable to reduce papers consumed and its
distribution work load. In FY 2005, we began acampaign for all contracts with Tokio Marine &Nichido employees to be done in an entirely
paperless manner through "e-ZONE," as part ofan initiative to reduce annual paper consumption
by 1 ton.

Promotion of the ISO14001 Environmental Management System
We have had an ISO14001 environmental
management system in place in Tokio Marine &Nichido since 1999, and by carrying out a PDCA
cycle, we have been proceeding with the promotionof environmental conservation activities andcontinuously working to improve our environmental
burden. This is overseen by Corporate Planning
Dept. the CSR Group, and we have a Social/
Environmental Key Person in place to promote thisin each department of our Head Office. In FY 2005,
we underwent our second renewal audit, and anaudit for transferred accreditation under the new
ISO14001 standard. Furthermore, as of FY 2006,
we have also deployed our own independent
environmental management system "Green Assist"in branches other than our Head Office, and other
Tokio Marine & Nichido group companies.

Global Environmental Protection

The Environmental Burden of Our Business Activities
The Millea Group gathers
data on the environmental
burden associated with ourdaily business activities andis undertaking initiatives toreduce the burden.
Furthermore, Tokio Marine& Nichido has undertaken
the "environmental accounting"that quantitatively grasps/
measures insofar as possible
the cost of environmental
protection
withinourbusiness activities and thebenefits of those efforts,
with results to be publishedin next fiscal year's CSR
report.

■ Energy Based Carbon Dioxide Emissions
FY2004(kg-CO2)

FY2005Tokio Marine & Nichido(including Group
Companies)

Millea Group
Major
Companies

Tokio Marine & Nichido(including Group
Companies)

Electricity

31,695,271

35,721,100

30,941,863(Purchased
Renewable Energy)▲378,000▲378,000▲378,000

Gas

3,097,609

3,803,401

3,508,568

Other Fuels

3,845,103

3,238,854

2,893,039

Gasoline

8,251,368

8,005,560

8,005,560

Total

46,511,351

50,390,915

44,971,030■ Fiscal Year Comparisonof CO2 Emissions ofｔ( -CO2) Tokio Marine & Nichido
50,00046,511
44,97140,00030,00020,00010,0000

FY2004

FY2005Note 1) Calculation Units: All nationwide offices of Tokio Marine & Nichido for gasoline, in other cases taken from the main 85 office buildings of Tokio Marine & Nichido (includinggroup companies) and the Millea Group companies.
Note 2) Millea Group Major Group Companies: Tokio Marine & Nichido, Tokio Marine & Nichido Life, Tokio Marine & Nichido Career Service, Tokio Marine & Nichido Facilities, andTokio Marine & Nichido Financial Life.
Note 3) Carbon Dioxide Emission Factor: "Methodology for Calculating Greenhouse Gas Emissions By Businesses (Draft Version 1.6)" used for electricity and purchased
renewable energy. "Calculation, Reporting and Publication System for Greenhouse Gas Emissions" used as the calculation base for other fuels and gasoline.

25

Global Environmental Protection

4.

Carbon Neutral and Contribution to Local
Communities through Mangrove Reforestation

Overview of the Mangrove Reforestation ProjectIn FY 1999 Tokio Marine & Nichido began mangrove
reforestation in Southeast Asia. The first phase of thisproject achieved the reforestation of 3,444 hectares,
making us a "carbon neutral*" company. Today, weare developing the second phase of this project in six
countries made up of the original five Southeast
Asian countries plus Fiji. Furthermore, this project isbeing run in partnership with the NGOs, Action for
Mangrove Reforestation (ACTMANG) and OISCA.
* Carbon Neutral:
The term "carbon-neutral" is used to reflect the fact that theemissions of carbon dioxide from business activities are offset bymethods such as reforestation and energy efficiency efforts,
resulting in no net addition of carbon to the atmosphere.

The 8th Mangrove Reforestation Volunteer Tour
Tokio Marine & Nichido holds mangrove reforestation
tours once or twice a year. We promote the tours toparticipants from Millea Group employees, agents,
retired staff, and their families as an opportunity toprovide environmental education and international
exchanges. In FY 2005 the 8th Mangrove
Reforestation Volunteer Tour visited Ranong in
Thailand with 28 participants and planted 23,000
mangroves for three days.
Comments from the Participants
I was moved to see all the participants working
together in reforestation. Participating in this tour has
raised my sensitivity to global environmental
protection. I want to tell other employees at Tokio
Marine Newa Insurance about this experience.
[Tokio Marine Newa Insurance (Taiwan) Employee, Wei Ming Lin]

Significance of the Project
Mangroves absorb a large amount of carbon dioxide,
help us prevent global warming, and also act as abreakwater protecting people from tsunamis. Also,
mangroves provide marine and forest resources forthe daily lives of local inhabitants, giving them thestabilization and improvement in the lifestyleenvironment, and contribute to local areas.
Furthermore, we are also undertaking international
exchanges with people in these areas through"Mangrove Volunteer Tours."

Project Phase 2
Project Phase 2 kicked off in FY 2004 with a reforestation
goal of 2,000 hectares over five years. By the end of FY
2005, the project was progressing smoothly having
completed half of the reforestation target.

■ Table: Project Phase 2 Reforestation Results(in Hectares)

Myanmar375
550

VietnamThailand

200
400

85
250

Philippines

105
100

Indonesia

235
650
Explanatory Note:
Fiji

28
50

26

Reforestation Achieved by FY 2005
Reforestation Target Area

The Green Classroom—the Mangrove Story
In FY 2005 Tokio Marine & Nichido, began "TheGreen Classroom—the Mangrove Story" as a way tocommemorate the first anniversary of the merger. In
this scheme, employees and agents visit elementary
schools and become speakers, giving classes on thetheme of "Preventing Global Warming" using
mangrove reforestation and donating flowerpots
made of recycled uniforms as materials.
And in FY 2005, 49 of our employees became
speakers visiting 20 schools in Tokyo, giving classes
to around 1,550 children and donating flowerpots toaround 10,000 children. The schools applauded ourraising of the children's environmental awareness,
which also increased the environmental awareness ofthe speakers themselves, adding to the energy of ouremployees. Company president Kunio Ishihara also
acted as one of the speakers, giving a lecture in frontof around 100 children about his own experienceengaging in reforestation in Thailand. We havedecided to continue with this project until the end of
the Project Phase 2 in FY 2008.
Furthermore, we also feature on the Tokio Marine &Nichido homepage "Activities Everyone Does toProtect the Environment," which we received from all
the children participating in these classes.

Winner of a Special Prize in the CSR Divisionof the 9th "Asia Insurance Industry Awards"
The Millea Group was acclaimed for its mangrove
reforestation project and contributions to local Asian
communities and the environment. We were awarded
a special prize in the CSR Division of the 9th "Asia
Insurance Industry Awards." The Asia Insurance
Industry Awards are an annual contest held by
Singaporean* 1 and English* 2 insurance industry
journals that present awards to non-life insurance,life insurance, reinsurance companies and such in the
Asian market that have been involved in activities
considered deserving of recognition.
*1 Singaporean insurance industry journal:
Asia Insurance Review.
*2 English insurance industry journal:
The Review-Worldwide Reinsurance.

Global Environmental Protection

Company president Kunio Ishihara as a speaker at theGreen Classroom

The Green Classroom at an elementary school in Mitaka city27Compliance

Building Trust throughProper Day-to-day Operation
At the Millea Group, which places customer
trust at the base of all its activities, it isimportant that all of our employees andagents forming our points of interaction withcustomers have strong senses of ethics, andthat we demonstrate this through our day-today operations. We will raise the sense of
ethics of our employees and agents through arange of initiatives, and practice honest andequitable business activities.
What should we do when we are unable to
make a decision? In response to various
consultations from our employees andagents, I advise them not only to comply
with rules but also to follow through withhonest and equitable attitude. I always makean effort to respect customers' feelings inrecognition of the fact that the translation ofcompliance into action is equal toresponding to demand from society.

Shigetaka Ayata
Manager, Telecommunication & Broadcasting Dept. /Marine Industry Production Dept.,
Tokio Marine & Nichido

Code of Conduct
The Millea Group has formulated the "Millea Group Code of Conduct" which all the directors andemployees of the Group companies should observe from the standpoint that the development ofbusiness in strict accordance with laws and rules is the fundamental basis ofmanagement.
Millea Group Code of Conduct (as amended Feb 6th, 2006)*

Basic Principles
1 Compliance
1-1
1-2
1-3

ComplianceInternational Rules and Local Laws
Free and Fair Competition

3 Appropriate Actions of and High

Transparency in Management
3-1

Appropriate Transaction

3-2

Public Disclosure

3-3

Accurate Information

3-4

Confidential Information

1-4

Conflicts of Interest

1-5

Insider Trading

1-6Intellectual Properties

the Environment

1-7Working Environment

4-1

Anti-discrimination

4-2

Anti-harassment

4-3

Personal Information

4-4

Protection of the Global Environment

2 Social and Political Issues
2-1

Anti-social Forces

2-2

Political Activities and Political Funding

2-3

Gifts and Entertainment

4 Respect for Human Rights and

The Applicable Laws, Rules,
Regulations and Internal Rules

http://www.millea.co.jp/en/conduct/index.html

Reporting28*Itemized outline only

1.Compliance Promotion Framework
Compliance Promotion Framework
The Millea Group defines compliance as "complying
with applicable laws, rules, regulations, internal rules,
and conducting fair and equitable business activities
within social norms," and has been proceeding withthe promotion of compliance.
1. The Role of Millea Holdings
Millea Holdings has provided for the "Basic Policy for
the Promotion of Compliance" for the purpose ofrealizing thoroughgoing compliance in the entire
Millea Group and makes planning of measuresconcerning the entire Group such as the submissionof annual policies for initiatives. Furthermore, aside
from periodically monitoring the state of progress, italso receives reports on key items, holds meetingsand makes decisions on the Compliance Committee,
the Management Meeting, and the Board of
Directors, and constructs a structure which enables
the entire Group to act properly by giving, where
necessary, advice and guidance regarding theactivities of the Group companies.

Tokio Marine & Nichido has the Compliance
Committee in place, more than half of its members
being comprised of the learned people unrelated tothe company, such as lawyers and university
professors, for the purpose of listening to a broad
range of opinions from outside the company for thepromotion of compliance. This committee is an organ
directly under the Board of Directors and makes
recommendations directly to the management. The
company is appreciative of many valuable opinions
and suggestions received from their insight andprofessional knowledge.

Hotline System
The Millea Group has installed various hotline
systems enabling directors and employees to makereports or seek advice in such times as when acompliance-related issue arises or looks like arising.
There is also a hotline to an external law firm set up
in consideration of offering a choice to facilitate use
by people reporting or seeking advice.
Furthermore, the Millea Group will not makedisadvantageous treatment of reporting parties suchas dismissal, pay reduction and demotion. All
information reported will be kept strictly confidential.
Details of the Hotline System
Millea Holdings Hotline
External Hotline (to an external law firm)
Internal Hotlines:(Tokio Marine & Nichido set up a dedicated helpline)
Compliance Help Line (handling calls forcases other than sexual harassment orhuman rights)
Human Rights Awareness Office (handlingcalls for Sexual Harassment / Human
Rights)Compliance Consultation Box:
(Tokio Marine & Nichido opened an interface for
written submissions via in-house computer
terminals)▲▲

Co mpl ian ce

2. P r o m o t i o n o f C o m p l i a n c e a m o n g t h eGroup Companies
The group companies construct structures of theirown for the promotion of compliance appropriate to
the types of business they conduct, in accordancewith the basic policies set out by Millea Holdings
and, in cases where they have their own subsidiaries
under them, monitor the promotion of compliance insuch subsidiaries. The group companies have been
established departments specialized in supervising
the progress of compliance in the respective
companies, and also compliance committees
engaged in planning the promotion of complianceand monitoring its progress. In addition, persons
responsible for the promotion of compliance, as wellthose who handle it, have been appointed in all
departments and branches; thus, the systematic
approach to the promotion of compliance has
become possible. The system and mechanism forpromoting compliance and important rules to beadhered to are dealt with in manuals of the respective
companies which are available to their directors andemployees. Moreover, in addition to preparing
manuals appropriate to the content of business andmaking rules clearer, efforts are being made at thethorough application of rules and the spread andimprovement of the awareness of compliance bytraining for directors and employees of thegroup companies.

Compliance Committee (Tokio Marine & Nichido)29Compliance2.

Fostering the Ethics of Our
Employees and Agents

Initiatives Aimed at Thorough Compliance
Tokio Marine & Nichido carries out initiatives for
improving the system of promoting compliance andenhancing compliance awareness in order tomaintain a constantly high level of ethics and toensure that compliance is thoroughly achieved
throughout all the company's business activities.

Compliance Staff Training

Compliance Promotion among Our Agents
Tokio Marine & Nichido provides specific training
programs for key agents selected by eachdepartment and branch.
Furthermore, the company has also taken various
initiatives in order that the awareness aboutcompliance may take root by supporting, forexample, the development of compliance frameworks
among its agents under the lead of a "Compliance
Leader" in each department and branch. In FY 2005,
the company won plaudits from many of its agents bystarting an "e-Training Compliance Course" forcompliance training that uses animation and is easy
to follow on the Internet in the office or at home.

The Millea Group holds various seminars inaccordance with positions and workplaces forpermeating the knowledge of comliance required at
the respective levels throughout the offices. In
addition, Tokio Marine & Nichido also runs
compliance tests (through its e-Learning system) ande-Review (with the same content of e-Training tests
transmitted to its agents) that uses its intranet toenable its staff to check whether they have necessary
compliance-related knowledge.
Policies Aimed at Promoting Compliance among Staff(Examples from Tokio Marine & Nichido)
Training for management (seminars by external lecturers)
Workplace training (common topics)
Training by rank
e-Learning using the company network (for management
and staff)
Information distributed by Compliance Department(providing information on useful examples of initiatives)

Compliance Promotion Tools
Tokio Marine & Nichido has distributed compliancemanuals to all directors and employees, enabling themto refer to these at any time.
Furthermore, for thoroughness'sake, the company has given
portablecompliance
cards
containing important compliance
items to all directors and employees.

30

The screen of "e-Training Compliance Course"

The Experience of an AgentIn the ongoing consolidationof agent’s offices, I wasconcerned
about
theincreasing
difficultyofgathering everyone together
for collective training as in
the past and also of letting
various kinds of things fully
understood to every person.
Makoto Ibaraki
Elaborating on matters
President ofrelating to compliance is aTokyo Business Support
particularly
importantCo., Ltd.
initiative. Through the "eTraining Compliance Course"
given on the Internet, all staff can take lectures when
they have free time, and finish them quickly. Moreover,
for a difficult subject like "compliance," the use ofvideos and animated characters with voices enables
learning without becoming bored. All the staff will beable to grasp their levels of understanding from course
and test results. I would like to continue using thisproactively in the future, and expect that content will
be further developed in such areas as products, officetasks and responding to claims.

3.

Establishment of Information
Security Governance

Policy for Initiatives Relating to Information Security
The Miilea Group has clarified its initiatives
concerning the personal information of its customers
by defining and publishing the "Millea Group Privacy
Policy," and each company of the group has set out
and published initiatives of its own in accordancewith the Policy.
For details on the above Privacy Policy, please referto the links below:
For details on our privacy policy from the web, please refer to the links below:

http://www.millea.co.jp/en/info/privacy.html (Millea Group)

Information Security Governance (Tokio Marine & Nichido)(1) Information Security Management Framework
Tokio Marine & Nichido has appointed a person
responsible for the total management of information
security (a person responsible for personal data) fromamong its directors and established under the persona system in charge exclusively of information
management. In conjunction with this, the generalmanagers of departments and branches have been
designated as persons responsible for information
management (persons responsible for personal
information) and have been made responsible foroverseeing all aspects of information management
within their respective areas. Furthermore, the"Information Security Committee" under the directcontrol of the Management Meeting has been
established to discuss and report on the leakage of
information and other important matters concerning
the management of information security in general.
■ Tokio Marine & Nichido Information Security Management Framework

Board of Directors
Risk Management Committee(3) Response to Leakage of Customer Information
In the event that documents or computers containing
customer information should be misplaced by an
employee or agent or should be stolen, we would takethoroughgoing action after the fact by quickly informing
customers of the case and avoid the occurrence of
secondary damage. At the same time we would takemeasures to prevent a recurrence of similar cases.

Acquisition of External Certification
The Millea Group has been active in acquiringexternal certification for information security as ameans to reinforce its management structure, andhas been awarded the "Privacy Mark" andcertification under the "Conformity Assessment
Scheme for Information Security Management
Systems (ISMS)" (refer to the table below) for the
initiatives taken for the protection of personal
information at the Group. The Group is determined tocontinue making improvements and make its
structure stronger.

Co mpl ian ce

Compliance Committee(2) Education/Training, Inspection/Monitoring
We have been making efforts to make the importanceof the appropriate management of customer
information fully understood by distributing an"Information Security Management Guidebook" to all
employees and an "Agent Information Security
Management Manual" to all agents, which give rules
for information security management, as well as byproviding guidance and education through various
kinds of training sessions. Also, we perform a
periodic self-inspection of the progress of
information security management.
Moreover, when the handling of customer information
is outsourced, we perform an investigation into thearrangement in accordance with our selection criteria
and make it an obligation on the part of theoutsourced company to maintain security
management at the same level as Tokio Marine &Nichido's by way of a contract or otherwise.

Management Meeting■ Table: External Certification among the Millea Group’s
Companies

Information Security Committee
Director in charge of Documentary &Legal Affairs Dept(Information Management Officer:
Personal Data Manager)
Documentary & Legal Affairs
Department (Information Security Office)・Overseer of response to the Law
Concerning the Protection of Personal
Information and other general
information security management.
・Handles disclosure requests, etc

Departments and Offices / Branches
Sections and sub-branches
AgentsIT Planning Dept.
Management of Accessto Electronic Data
Password Setting, etc

Group businesses
Date
Certification
November 2005 Privacy Mark
Tokio Marine &March 2006
ISMS
Nichido Communications March 2006
BS7799Remarks
First member of the groupto obtain the Privacy Mark,ISMS/BS7799 Certification

Tokio Marine &Nichido Life

April 2006

Privacy MarkFirst life insurancecompany in Japan toobtain the Privacy Mark

Tokio Marine &June 2006
Nichido Career Service

Privacy Mark

Obtained the Privacy
Mark, as required forsales development of the
Temp Staffing Industry

Information
Management
Officer set up ineach organization
unit (Personal DataManager)

BS7799-2-2002/IS502163

ISMS Ver2.0/IJ02066

31

Respect for Human Rights and Dignity

Enabling Comfortable Workplace
Environments That Respect Diversity
Improvement in the satisfaction of our customers
and other stakeholders cannot be realized without
raising the satisfaction levels of our employees
who are at the starting point of providing value. We
will make continued efforts to realize anenvironment where our employers find it more
comfortable to work, by improving various
systems considerate of diversity and improving
improving
convenience at their workplaces.
I feel that I can reasonably coordinate work in
the office with childcare at home, only with"support" from coworkers and family in
addition to improvement in childcare system inthe office. I want to fulfill my responsibilities"as a mother" and "as a member of society"with the sense of appreciation for thosearound me, thinking much of the importanceof communication.

Natsuko Suzuki
Assistant Manager ,Tokyo Automobile Industry Production Support Division,
Tokio Marine & Nichido

The Millea Group's "Human Rights Awareness-raising Criteria"
The Millea Group has set out its "Human Rights Awareness Raising Criteria" in order to promoteawareness about human rights at its group companies. "Human Rights Awareness-Raising" ismeant to advance public relations and other corporate activities to spread respect for humanrights at the group companies, to deepen the understanding of employees about such rights andthus establish culture of respecting human rights at the companies.
The group companies have been processing systematically with initiatives for human rights inaccordance with the "Human Rights Awareness Raising Criteria."

Human Rights Awareness-Raising Initiatives
Tokio Marine & Nichido has held training sessions for human rights awareness at workplaces
every year since 1983, with participation of all the company employees and people working withthem for the purpose of building up comfortable workplaces where each and every member has asolid awareness of human rights, fosters "culture of respect for human rights" and esteems eachother. Training for FY 2005 was run on "Thinking about Discrimination," and in the survey forms
collected from participants after the training were such opinions as "there is meaning tocontinuing implementation"; "I have renewed my sense of awareness about discrimination"; and"I want to act in consideration of others." Also, we have given training separate for positions andawareness raising programs, which attracted a lot of attention. We have been going on withother initiatives for furthering a general awareness of respect for human rights, such as a
campaign for collecting human rights slogans during the Human Rights Week, a thoroughprohibition of harassment, etc.

32

1.

Creating Comfortable Workplaces
for All Workers

Establishment of a Continued Employment System for the Elderly
The Millea Group has decided to continue actively
employing people who have a strong will tocontribute to the enhancement of its corporate value(up to the age of 65 in principle), in light of the aimsof recent amendments to the Law for the Stable
Employment of the Elderly and from the purposes of
CSR. This decision has come from the thought thatthe active promotion of workplaces for elderly
employees is one of the key management issues formaintaining the sustainable growth of the group as awhole. We will continue encouraging the selfdevelopment and reformation in awareness andactions of our employees themselves and create thefields of activities where they can make use of theirexperience and strengths and create newly-added
value while maintaining high levels of motivation.

Promotion and Normalization of Employment of the Disabled
The Millea Group has been proceeding with initiatives
aimed at the promotion and normalization of
employment of the disabled. In particular, Tokio
Marine & Nichido has been making efforts to improve
its working environment by establishing an "In-house
Normalization Promotion Center" in 1991 to make its
workplaces more comfortable for employees withdisabilities. In FY 2005 the company moved forwardwith efforts to make its buildings barrier-free by
improvements to its facilities through such measures
as door automation, the addition of ramps and rails,
and the installation of emergency lamps.
Furthermore, the company holds annual interviews
with disabled employees (biannually for employeeswith less than 2 years' experience) to provide
support for employees with disabilities in their work
and workplaces. These counseling sessions haveenabled progress on the resolution of issues thatexist and the improvement of retention, reflected in
the fact that Tokio Marine & Nichido has a disabled
employment rate of 1.92% (as of March 31, 2006),
maintaining an employment level above the Japanese
legal threshold of 1.8% since March 2001.

Tokio Marine & Nichido Career Service oversees thedispatch of around 13,000 temporary employees to
its group companies. In order to match the various
preferences of temporary employees as to workplacelocations/configuration and area of work with humanresources sought by each company, a specialist staff(Coordinating Staff) was set up in April 2006. The

Accepting Students from the University of Hawaii as Interns
Tokio Marine & Nichido has run an internshipprogram for students from the University of Hawaii
since 2004, in cooperation with First Insurance Co.,
(FICOH) which is a major non-life insurance company
in Hawaii. We accept about two student interns eachyear under this program. This initiative was started
for the purposes of fostering student's interest in theinsurance industry and expanding the range ofhuman resources available in Hawaii for the industry.
Generally, two students are invited every year and,during the course of two weeks, they visit agents,
experience actual business and make presentations
on the final day. By this program we will continue
contributing indirectly to the CSR activities by
FICOH to develop the Hawaiian insurance industry
and economy.

Comment from a Student Intern
In spite of being for the shortperiod of just two weeks, I
found my experience as anintern at Tokio Marine &Nichido invaluable in that I
was able to learn about suchthings as Japanese business
Ms. Romella Feliciano
methods, the Japanese work
ethic, the style of interaction here and the approach toconversation. Also, I was offered a glimpse at how
Tokio Marine & Nichido works hard to create superior
customer service under its Corporate Philosophy ofproviding customers with the highest quality services.
Presently, I am involved in claim services at FICOH.
Through this, I have developed a sense of thechallenge that lies in providing superior services tocustomers in this work, as a contact point between thecompany and its customers. This experience as anintern has been invaluable in helping me discover myprofessional calling. (Ms. Romella Feliciano)

Respect for Human Rights and Dignity

Introduction of "Coordinating Staff" Supporting Searching for Suitable Placement

Coordinating Staff is a position that, with a firm graspof the preferences of our group companies, stands inthe position of our temporary employees andextensively searches out a workplace where needs
on both sides match and where those people canwork with vitality. In support of Coodinating Staff andfor purposes of better matching of needs, Tokio
Marine & Nichido Career Service has been making areform of its business process regarding theorganizational structure, system, book, etc. Throughthe establishment of the Coordinating Staff, thecompany hes been making efforts to offer services
satisfactory to both temporary employees and thegroup companies.

33

Respect for Human Rights and Dignity

2.Supporting for Coexistence between Work and Nursing Care / Childcare / Housework
Support for Work/Life Balance

8 Packages that Provide Full Childcare Support

Tokio Marine & Nichido has various systems in place
as support for work/life balance, such as a nursing
care leave system and a volunteer work leavesystem. There is also the "I-Turn system" which isone of the Job Request systems in place to provide
opportunities for employees to work in different
geographic areas. This system enables employees tochange the locations of their places of employment incases of such changes in the environment as thetransfer of a parent or spouse, or marriage. Under
this system, the company can respond to employees'
wishes "to continue working long for the company."■ Number of Staff Taking Nursing Care / Volunteer Work Leave
FiscalNursing care Leave

Volunteer Work Leave

2003

2

19

2004

3

45

2005

6

58

Tokio Marine & Nichido considers it necessary to
broaden the work options on offer to employees in amanner that accounts for their diverse values andlifestyles in order to promote further activities. As
such, the company has built up a system called"Childcare Full Support, 8 Packages," for further
improvement in the maternity protection andchildcare support system feedback from its
employees to the greatest extent possible. Throughvarious systems such as the Short Working Hours
system of working for a maximum 3 hours a day, asystem that supports the hiring of temporary
replacements, a system to support the resumption of
employment, and various fee subsidies andpartnerships with 300 childcare centers nationwide,
as well as refinements in our own operations, wehave been creating a climate throughout thecompany that makes it easier for employees to makeuse of these systems if they so wish, by constantly
undertaking to shift employee awareness and actionsin the right directions.

■ Childcare Support System Content

System Type2

3

Rehiring of retired female who fulfill prescribed criteria.
Female Staff Rehiring System used by 42 people (as of 1 April 2006)

Maternity Leave System

Available from 8 weeks prior to the expected date of delivery (exceeding thelegal requirement of 6 weeks).
100% of salary provided before and after giving birth during the leave period(bonuses are provided through the Employee Cooperative)

Childcare Leave System

Available for up to 2 years (Legal criteria is up to 18 months)
Spousal criteria abolished (can be received even if a spouse capable of childrearing exists).
Childcare leave used in FY 2003: 69 people, FY 2004: 83 people, and FY 2005:
118 people▲

Female Staff Rehiring System▲

1

Features4

Short Working Hours System

Enables reduced working hours to the shortest hours of 10am through 3pm(applicable in 30 minute units)
Short Working Hours System can be used up for caring for children up to their
third year of elementary school, used by 55 people (as of 1 July 2006).
Possible for pregnant employees to reduce working hours to facilitatecommuting (30 minutes in morning and evening).
Entitlement to 100% of salary for time spent on childcare for raising children up
to one year of age (for up to one hour each day).
Exemption from overtime work for parents raising children of less than three
years of age.

5

Substitution by Full Time
Employees

Full time employees are placed for substitution.

6

Resumption of Work Support
SystemDialogue with supervisors prior to, during leave, and prior to resumption, andsupport for personal development.

7

Support of Use of Babysitters

Offering of support in paying the costs of using babysitters, as well aspurchasing and rental of childcare goods.

8Partnered Childcare Centers

330 partnered childcare centers nationwide.

*Note that the systems explained under 3, 4, and 6 were all newly added in FY 2005.

34

3. Creating Workplaces with Dynamism
Healthcare Management and Mental Care
Tokio Marine & Nichido offers care covering both the
body and mind of its employees through healthcheck-ups and counseling, with psychiatrists andclinical psychotherapists within the Health
Consultation Centers in each of its regional
operational support departments, as well as having
the Healthcare Center at its Head Office and
Healthcare Management Offices and Healthcare
Consultation Offices staffed with nurses in 46
locations nationwide. Since 1992, the company has
maintained a 100% record of staff taking healthcheck-ups, and its industrial healthcare staff madeup of industrial doctors, nurses and such offer strict
but sympathetic guidance on lifestyle habits basedon the check-up results. With regard to mental care,the company has set up an easy-to-use framework of
externally partnered counseling rooms for its
employees and their families to use in addition to thecompany's in-house industrial healthcare staff.
Furthermore, in FY 2005 the company ran a "mental
health check-up" for each employee, and provided
consultations with general managers based on theanalysis of the results in each of branch and office, in
addition to giving feedback to individuals.

Creating Workplaces with Satisfaction
All businesses are required to improve their working
environments to respond to the rapidly declining
birthrate in recent years and as well as changes inthe environment surrounding families and local
communities. Under these circumstances in society,
the Millea Group has been proceeding with initiatives
that support diverse and flexible ways of working.
Tokio Marine & Nichido Facilities, which came directly
under Millea Holdings in FY2005, has been
advancing the creation of a working environment
where employees are able to work lively. Specifically,in order to create a dynamic workplace, it isimportant to enable employees to take a sufficientamount of rest and refreshment, and the company
has taken various measures to realize an environment
where employees find it easy to take holidays
following the lead shown by a managerial staff.
■ Tokio Marine & Nichido's Major Measures for Improvementof the Working Environment

Major Measures
New Establishment of Refreshment Leave
Extension of Days for Special Continuous Paid Leave
Extension of Days for Leave for Retirement*
Promotion of Taking the Annual Paid Leave, etc.

* This is an increase in the number of days that can be taken as
special paid holidays in the year before retirement for employees
who have worked for more than 15 years.

Introduction of a Discretionary Work System

Giving feedback about health check-ups

Healthy Labor Relations* Discretionary Work System:
This is a system which leaves working hours and the mannerof carrying out work up to the discretion of workers
themselves, and ascribes a fixed number of hours rather thannormal working hours.

Respect for Human Rights and Dignity

Tokio Marine & Nichido conducts discussions andnegotiations with Tokio Marine & Nichido Labor Union
nearly 30 times a year in the framework of joint labormanagement meetings and through daily routine
negotiations on the basis of the labor agreement
entered into with them to build up mutually reliaible
relationships to foster a corporate culture which
encourages free and open communication, enabling
every employee to demonstrate creativity on all
matters covering compensation, personnel systems
and other management issues. Furthermore, thecompany also carries out negotiations anddiscussions with other labor unions aimed at
resolving various issues, in good faith and in anenergetic manner.

Tokio Marine & Nichido has introduced aDiscretionary Work System* with the aims of"improving productivity" and "enhancing employee
motivation levels." Employees, given the discretion todecide when and how they get through their work,
feel, for example, that "having flexibility over working
hours gives stimulation to my work, and as a result, it
has contributed to my personal life," voices like thesefrom them show that the system has been achieving
the expected result.

35

Comment from a Third Party

A prologue to "Deductive CSR." This is my first
impression after having read the Millea GroupCSR Report 2006. "Deductive" is anexpression of the approach of beginning bysearching through the concept of what acompany should aspire to and drawing out
what Millea Group's ideal CSR should be.
There is a feel of freshness in this kind of
method, which at the same time struck me as
being the way that CSR should be. This isbecause thinking through what CSR one's
company should have leads to CSR that fitsthat company.
Arranging CSR in a deductive manner hasbrought a positive effect to this report. That is
the realization of a narrative. There are still
many examples that exist eleswhere of
showing the practice of CSR as points, without
being structured overall. This necessarily
leaves CSR reports with patchwork-like
content. In contrast, by showing an "Overall
CSR Diagram (Pyramid)," the Millea Group has
succeeded in representing CSR activities as"lines" linking "points" with other "points." Theeffect of this is that the readers of this report
should be able to read through the many
initiatives given from "Providing Value to Our
Customers" to "Respect for Human Rights andDignity" as a continuous narrative.
Furthermore, the placement of practicing thecorporate philosophy as CSR itself will most
likely have a positive meaning at the company
as well. Corporate philosophies are often
prone to being pushed to the fringes ofawareness. Also, I often hear that with regard
to CSR people do not understand how to go
about undertaking it. At the Millea group, both ofthese have been tied together. By reporting
detailed initiatives, CSR activities will likely
permeate throughout the company, and life will
be fed into the corporate philosophy. Bringing
forth this kind of positive feedback cycle is oneof the roles expected of a CSR Report.
On the reverse side of this, there have also
been a number of cases at Millea Groupinvolving non-payment of claims for incidental
expenses and such. This is disappointing, evenjust from the perspective of including
compliance as an essential condition of
corporate existence within its CSR overall
diagram. One can broadly evaluate the pointthat this matter has been discussed in allseriousness, from the analysis of causes
through measures taken to prevent recurrencesof similar cases. However, what matters mostis future initiatives. While expecting PDCA towork and no recurrence to take place, at thesame time I would like to keep watch over this.
In this report, a roadmap is shown
demonstrating that the raising of the corporate
brand value through the practice of CSR leads
to the raising of the corporate value to all our
stakeholders overall. There is also acommentary given on the CSR Index thatmeasures this. It appears that this index willcontinue to be published next year andonwards. It is likely that by adding quantitative
information to qualitative information, the CSR
report would have even more accountable
content. I expect the further development ofMillea Group CSR activities such that thisMillea Group CSR Report 2006 will be viewed
in the future as a historic report forming thebase point.

Biography of Yusuke Nakajo
March 1992: Received Later Period Doctorate in Commerce from
Hitotsubashi University Graduate School;
April 1992: Became a full time lecturer at Yokohama City University
Economics Department, April 1993: Became an assistant professor at thesame university; August 2004: Became a full professor at the same
university; April 2005: Under a reorganization within the university, wasmade a professor of postgraduate international general scientific studies.
The main academic conferences of which Mr. Nakajo is a member of are
the Japan Accounting Association, the Japanese Association for Research
in Disclosure (administrative officer), and the Japan Academic Society ofInvestor Relations (chairperson).
The main books he has had published are "Accounting of Intangible
Assets" ("Mukei Shisan no Kaikei") (collaboration, 2006), "Consolidated
Accounting and Group Management" ("Renketsu Kaikei To Gurupu Keiei")(collaborative, 2004) among others.
Fields of specialty are accounting, corporate analysis, disclosure, andinvestor relations (IR).

36

GRI Guidelines Comparative Table■ GRI Guidelines Comparative Table

Items selected in order of importance are introduced in this report and therefore the report does notcover all of the Millea Group’s CSR initiatives.
GRI Elements and Indicators Page

Stakeholder Engagement
3.9

Basis for identification and selection of major stakeholders

P4-5,17

1.1

Statement of the organisation's vision and strategy regarding its
contribution to sustainable development

P2-3

3.10

Approaches to stakeholder consultation reported in terms offrequency of consultations by type and by stakeholder group

P14-17

1.2

Statement from the CEO describing key elements of the report

P2-3

3.11

Type of information generated by stakeholder consultations

P5,14-17

Profile3.12

Use of information resulting from stakeholder engagements

P5,14-17

Organisational Profile

Overarching Policies and Management Systems

Vision and Strategy

2.1

Name of reporting organisation

P0

2.2

Major products and/or services, including brands if appropriate

P0

2.3

Operational structure of the organisation

P0

2.4

Description of major divisions, operating companies, subsidiaries,
and joint ventures

P0

2.5

Countries in which the organisation's operations are located

P0

2.6

Nature of ownership; legal form

P0

2.7

Nature of markets served

—

3.13

Explanation of whether and how the precautionary approach or
principle is addressed by the organisation

P6-7,31

3.14

Externally developed, voluntary economic, environmental, and social
charters, sets of principles, or other initiatives to which theorganisation subscribes or which it endorses

P0-1

3.15

Principal memberships in industry and business associations, and/or
national/international advocacy organisations

—

3.16

Policies and/or systems for managing upstream and downstream
impacts

P6,30-31—

2.8

Scale of the reporting organisation

P0

3.17

Reporting organisationÅfs approach to managing indirect economic,
environmental, and social impacts resulting from its activities

2.9

List of stakeholders, key attributes of each, and relationship to thereporting organisation

P4-5

3.18

Major decisions during the reporting period regarding the location of,or changes in, operations

—

3.19

Programmes and procedures pertaining to economic, environmental,
and social performance

P25

3.20

Status of certification pertaining to economic, environmental, andsocial management systems

P25,31

Report Scope
2.10

Contact person(s) for the report, including e-mail and web addresses

P37

2.11

Reporting period (e.g., fiscal/calendar year) for information provided

P1

2.12

Date of most recent previous report (if any).

P1

2.13
2.14

2.15

2.16

Boundaries of report (countries/regions, products/services,
divisions/facilities/joint ventures/subsidiaries) and any specificlimitations on the scope
Significant changes in size, structure, ownership,
products/services that have occurred since the previous reportorEconomic Performance Indicators
P0-1

EC1

Net sales

P0

EC10

Donations to community, civil society, and other groups broken downin terms of cash and in-kind donations per type of group

P20—

Environmental Performance Indicators

Basis for reporting on joint ventures, partially owned subsidiaries,
leased facilities, outsourced operations, and other situations that cansignificantly affect comparability from period to period and/or
between reporting organisations—

Explanation of the nature and effect of any re-statements of information
provided in earlier reports, and the reasons for such re-statement

No materialchanges exist.

EN8

Greenhouse gas emissions

P25

EN17

Initiatives to use renewable energy sources and to increase energy
efficiency

P25

Social Performance Indicators
Labour Practices and Decent Work

Report Profile
Decisions not to apply GRI principles or protocols in the preparationof the report.

P1

2.18

Criteria/definitions used in any accounting
environmental, and social costs and benefits

—

2.19

Significant changes from previous years in the measurement
methods applied to key economic, environmental, and social
information

2.20

Policies and internal practices to enhance and provide assurance
about the accuracy, completeness, and reliability that can be placedon the sustainability report—

Policy and current practice with regard to providing independent
assurance for the full report

P36

2.17

2.21

2.22

for

economic,

Means by which report users can obtain additional information
and reports about economic, environmental, and social aspectsof the organisation's activities, including facility-specificinformation (if available).

P25

The URL referenceswith symbol, web
are given in therelevant pages.

LA10

Description of equal opportunity policies or programmes, as well as
monitoring systems to ensure compliance and results of monitoring

P10

LA12

Employee benefits beyond those legally mandated

P33-35

LA16

Description of programmes to support the continued employability of
employees and to manage career endings

P10-11,13

Human Rights
HR1

Description of policies, guidelines, corporate structure, andprocedures to deal with all aspects of human rights relevant tooperations, including monitoring mechanisms and results

P32

HR4

Description of global policy and procedures/programmes preventing
all forms of discrimination in operations, including monitoring
systems and results of monitoring

P32

SO2

Description of the policy, procedures/management systems, andcompliance mechanisms for organisations and employees
addressing bribery and corruption

P28-29SO3

Description of policy, procedures/management systems, andcompliance mechanisms for managing political lobbying andcontributions

P28

SO4

Awards received relevant to social, ethical, and environmental
performance.

P27

SO7

Description of policy, procedures /management systems, andcompliance mechanisms for preventing anti-competitive behaviour

P28-29Society

Governance Structure and Management Systems
Structure and Governance
3.1

Governance structure of the organisation, including majorcommittees under the board of directors that are responsible forsetting strategy and for oversight of the organisation

3.2

Percentage of the board of directors that are independent, nonexecutive directors

P6
P6

Product Responsibility

3.3

Process for determining the expertise board members need to guidethe strategic direction of the organisation, including issues related toenvironmental and social risks and opportunities

3.4

Board-level processes for overseeing the organisation’s
identification and management of economic, environmental, andsocial risks and opportunities

P6

3.5

Linkage between executive compensation and achievement of theorganisation’s financial and non-financial goals (e.g., environmental
performance, labour practices)

P6

3.6

Organisational structure and key individuals responsible for oversight,
implementation, and audit of economic, environmental, social, andrelated policies

P4,6-7,29,31

3.7

Mission and values statements, internally developed codes of conductor principles, and polices relevant to economic, environmental, andsocial performance and the status of implementation

P2-7,
18,22,28-29,
31

3.8

Mechanisms for shareholders to provide recommendations ordirection to the board of directors

—

P6

PR3

Description of policy, procedures/management systems, andcompliance mechanisms for consumer privacy

P31

PR8

Description of policy, procedures/management systems, andcompliance mechanisms related to customer satisfaction, including
results of surveys measuring customer satisfaction

P10-11*Additional indicators should be indicated in blue.

■ Contact

Corporate Planning Dept. Millea Holdings, Inc.
Tokyo Kaijo & Nichido Building Shinkan 9F, 1-2-1 Marunouchi, Chiyoda-ku, Tokyo, 100-0005 Japan
TEL:+81-3-6212-3333
FAX:+81-3-6212-3711
email:CSR@millea.co.jp
HP: http://www.millea.co.jp/en/index.html

37

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Cert no. SA-COC-1210