This document has been translated from the Japanese original solely for reference purposes, and the Japanese original shall prevail if any discrepancy is identified.

SUMMARY OF FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2019
May 20, 2019

MS&AD Insurance Group Holdings, Inc.

Name of Listed Company:
Stock Exchange Listing:
Securities Code Number:
URL:
Representative:
Contact:

Tokyo Stock Exchange and Nagoya Stock Exchange8725
https://www.ms-ad-hd.com
Yasuyoshi Karasawa, President & CEO
Masaru Kenma, Manager, Consolidated Accounting Section, Accounting Department
Telephone: 03-5117-0305
Scheduled date to hold the ordinary general meeting of shareholders:June 24, 2019
Scheduled date to file the Securities Report:
June 24, 2019
Scheduled date to commence dividend payments:
June 25, 2019
Explanatory material for business results:
Available
IR Conference (for institutional investors and analysts):
To be held
(Note) Amounts of less than one million yen are truncated.

1. Consolidated Financial Highlights for the Year Ended March 31, 2019 (April 1, 2018 to March 31, 2019)(Yen in millions)(1) Consolidated business performance
Ordinary income
5,500,438
5,217,835

Year ended March 31, 2019Year ended March 31, 2018

Net income attributable to owners of
the parent

Ordinary profit

5.4 %(2.2) %

290,847
211,54837.5 %(40.0) %192,705
154,057

25.1 %(26.8) %Percent figures represent changes from the corresponding period of the preceding year.

For the year ended March 31, 2019:
For the year ended March 31, 2018:(Note) Comprehensive income¥¥(79,701) million
311,096 million

172.2

%
%

(Yen)
Net income attributable Net income attributable
Ordinary profit
Ordinary profit
to owners of the parent to owners of the parent Return on
equityto total assets
to ordinary income
per shareper share- Basic- Diluted
Year ended March 31, 2019
328.72328.60
6.8 %
1.3 %
5.3 %
Year ended March 31, 2018260.04259.98
5.5 %
1.0 %
4.1 %
3,751
million(Reference) Gains/(losses) on equity method investments For the year ended March 31, 2019: ¥For the year ended March 31, 2018: ¥3,017
million(2) Consolidated financial conditions(Yen in millions)
Ratio of net assets less
Net assets less non-controlling
Net assets
non-controlling interests
interests per share (Yen)to total assets
2,778,047
11.9 %
4,712.11
2,968,387
13.1 %
4,964.64
As of March 31, 2019:¥ 2,750,519 million
As of March 31, 2018:¥ 2,941,112 million

Total assets
23,132,539
22,472,927(Reference) Net assets less non-controlling interests

March 31, 2019
March 31, 2018

(3) Consolidated cash flows

Year ended March 31, 2019Year ended March 31, 2018

Cash flows fromoperating activities
776,724822,640

Cash flows frominvesting activities(252,417)(963,105)

Cash flows fromfinancing activities(33,337)
42,329(Yen in millions)Ending balance of cash andcash equivalents
1,798,526
1,323,506

2. Dividends

Year ended March 31, 2018Year ended March 31, 2019Year ending March 31, 2020
(Forecast)

1stquarter-

Dividends per share (Yen)
3rd
4th
2nd
quarter quarter quarter
65.00
65.00
70.00
70.00

Annualtotal
130.00140.0075.00

150.00-75.00

Total annual
dividends(Yen in millions)

77,014
81,720

Dividend
pay-out ratio(Consolidated)50.0 %
42.6 %

Dividends on
net assets(Consolidated)
2.7 %
2.9 %

43.8 %

3. Consolidated Earnings Forecasts for the Year Ending March 31, 2020 (April 1, 2019 to March 31, 2020)
Ordinary profit
Year ending March 31, 2020

298,000

Percent figures represent changes from the preceding year.

2.5 %Net income attributable to ownersof the parent
200,000
3.8 %(Yen in millions)
Net income attributable to owners of
the parent per share (Yen)342.63

* Notes(1) Changes in significant subsidiaries for the period (changes in specified subsidiaries resulting in changes in scope of
consolidation): None
(2) Changes in accounting policies and accounting estimates and restatements
1. Changes in accounting policies due to revisions of accounting standards: None
2. Changes in accounting policies other than above: None
3. Changes in accounting estimates: None
4. Restatements: None

(3) Number of shares of issued stock (common stock)
1. Number of shares of issued stock (including treasury stock)
As of March 31, 2019:593,291,754 shares
As of March 31, 2018:593,291,754 shares
2. Number of shares of treasury stock
As of March 31, 2019:
9,580,005 shares
As of March 31, 2018:
880,702 shares
3. Average number of shares of outstanding stock
For the year ended March 31, 2019:
586,215,764 shares
For the year ended March 31, 2018:592,418,361 shares* This report is unaudited.
* Notes to the earnings forecasts and others
Any earnings forecasts in this report have been made based on the information available to the Company as of the disclosure date of thereport and certain assumptions, and therefore do not guarantee future performance. Actual results may differ substantially from these
forecasts depending on various factors. For key assumptions of the earnings forecasts and other relevant information, please refer to“Consolidated Earnings Forecasts for the Year Ending March 31, 2020” on page 4 of the Appendix. The forecasts of consolidated
ordinary income for the fiscal year and consolidated earnings for the second quarter (cumulative) are not disclosed due to difficulties incalculating reasonable forecast figures stemming from a high susceptibility to natural disasters and market conditions.

[Appendix]

ContentsPage
1. Overview of Business Performance and Forecasts(1) Overview of Business Performance and Financial Conditions in the Fiscal Yearunder Review・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・(2) Consolidated Earnings Forecasts for the Year Ending March 31, 2020・・・・・・・・・・・・・・・・・・・
2. Basic Stance for Adopting Accounting Standards ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
3. Consolidated Financial Statements and Main Notes(1) Consolidated Balance Sheets ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・(2) Consolidated Statements of Income and Comprehensive Income ・・・・・・・・・・・・・・・・・・・・・・(3) Consolidated Statements of Changes in Net Assets ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・(4) Consolidated Statements of Cash Flows・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・(5) Notes to Consolidated Financial Statements(Notes to Going Concern Assumptions) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・(Notes to Segment Information) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・(Notes to Per Share Information) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・(Notes to Significant Subsequent Events) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・[Attachment]
Explanatory Material for Business Results for the Year Ended March 31, 2019

1

2
4
4
5
7
10
12
14
14
19
20

1. Overview of Business Performance and Forecasts(1) Overview of Business Performance and Financial Conditions in the Fiscal Year under Review(Overview of business performance in the fiscal year under review)
During the fiscal year under review, although the global economy continued on a solid growth trend supported by the strong US
economy, uncertainty increased due to factors such as US-China trade friction, a slower economy in China and emerging countries,
and unclear political situations in Europe.
The Japanese economy saw moderate recovery, reflecting continued high levels of corporate earnings and increases in capital
expenditure as well as steady improvement of the employment environment, despite being hit by successive natural disasters.
The MS&AD Insurance Group (“the Group”) launched the new Medium-Term Management Plan “Vision 2021” with goals of
becoming “a world-leading insurance and financial services group” and creating resilient（Note）systems that can swiftly respond toany change in a rapidly changing environment. For achieving these goals, the Company has been making efforts for the three key
strategies of “Pursue Group’s comprehensive strengths,” “Promote digitalization,” and “Reform portfolio” under the fundamental
strategy of “By employing the Group’s resources to the maximum, we will realize sustainable growth and enhance corporate value,”“We will pursue the Group’s comprehensive strengths, one of which is diversity, and meet the expectations of customers and otherstakeholders,”and “We will respond flexibly to changes in the environment and further improve quality and productivity.”

Pursue Group’s comprehensive
strengths

Promote digitalization

Reform portfolio

We made efforts for realizing higher efficiency and quality by promoting
standardization and sharing of products, services, administration, systems, etc., forstrengthening competitiveness by utilizing group synergies and strengthened profitability
on a Group basis such as creation of an optimal asset management structure of the Group.
For the purpose of increasing productivity and “enhancing the value of customers’
actual experiences,” we utilized digital technologies, cooperated with externalorganizations, etc., including in industry, government, and academia sectors and madeinvestments in startups through a corporate venture capital (CVC) established in Silicon
Valley, the US, and thus made efforts for reform of our business model, leveraging thesetechnologies and expertise.
We made efforts to reform our business portfolio with diversified geography andbusinesses, strengthening and expanding the international business and domestic life
insurance business in addition to the domestic non-life insurance business, and also
reformed our risk portfolio by reducing strategic equity holdings and strengthening risk
management for natural catastrophe risks on a Group basis.

In the fiscal year under review, as extensive disasters such as typhoons and earthquakes successively occurred, we made efforts to
pay insurance claims promptly to customers by deploying more personnel at call centers and disaster countermeasures offices andmaking the marketing & sales division, the head office division, and group companies work together with the claims services
division while using ICT such as drones (unmanned helicopters) and video chat (teleconferences).
Also, we promoted diversity and inclusion for respecting different values regardless of nationality, gender, age, and experienceand arranged an environment where diversified human assets can play active roles.
(Note) Resilient: Having the power to adapt flexibly and skillfully, reduce impact and recover quickly from changing circumstances andunexpected events.

As a result of these efforts, earnings for the current consolidated fiscal year to date are as follows.
Underwriting income was ¥4,918.6 billion, investment income was ¥561.1 billion and other ordinary income was ¥20.6 billion,
resulting in total ordinary income of ¥5,500.4 billion. At the same time, ordinary expenses amounted to ¥5,209.5 billion, including¥4,406.8 billion in underwriting expenses, ¥104.8 billion in investment expenses, ¥680.9 billion in operating expenses and generaland administrative expenses, and other ordinary expenses amounting to ¥17.0 billion.
As a result, the Company posted an ordinary profit of ¥290.8 billion, an increase of ¥79.2 billion over the previous fiscal year.
After factoring in extraordinary income and losses, income taxes and other items, net income rose by ¥38.6 billion over the previous
fiscal year to ¥192.7 billion.
Summaries of each business segment are given below.
1) Domestic Non-life Insurance Business (Mitsui Sumitomo Insurance Co., Ltd.)
Ordinary income was ¥1,908.6 billion after recording underwriting income of ¥1,696.4 billion, investment income of¥206.8 billion, and other ordinary income of ¥5.3 billion. Meanwhile, ordinary expenses came to ¥1,682.1 billion resulting
from underwriting expenses of ¥1,436.7 billion, investment expenses of ¥12.6 billion, operating expenses and general andadministrative expenses of ¥223.2 billion, and other ordinary expenses of ¥9.4 billion.
As a result, ordinary profit was ¥226.4 billion with a decrease of ¥36.0 billion from the previous fiscal year. After
factoring in extraordinary income and losses, income taxes and other factors to ordinary profit, net income came to ¥171.1
billion with a decrease of ¥27.1 billion from the previous fiscal year.
2) Domestic Non-life Insurance Business (Aioi Nissay Dowa Insurance Co., Ltd.)
Ordinary income was ¥1,425.5 billion after recording underwriting income of ¥1,354.4 billion, investment income of¥62.2 billion, and other ordinary income of ¥8.7 billion. Meanwhile, ordinary expenses came to ¥1,364.1 billion resulting
from underwriting expenses of ¥1,159.8 billion, investment expenses of ¥13.8 billion, operating expenses and general andadministrative expenses of ¥188.6 billion, and other ordinary expenses of ¥1.7 billion.
As a result, ordinary profit was ¥61.3 billion with an increase of ¥55.7 billion from the previous fiscal year. After factoringin extraordinary income and losses, income taxes and other factors to ordinary profit, net income came to ¥37.3 billion withan increase of ¥21.6 billion from the previous fiscal year.

23) Domestic Non-life Insurance Business (Mitsui Direct General Insurance Co., Ltd.)
Ordinary income was ¥37.6 billion after recording underwriting income of ¥37.5 billion and others, meanwhile, ordinary
expenses came to ¥37.2 billion resulting from underwriting expenses of ¥28.2 billion and operating expenses and generaland administrative expenses of ¥8.9 billion.
As a result, ordinary profit and net income were ¥0.3 billion and ¥0.2 billion respectively, about the same as in theprevious fiscal year. Consequently, net income after taking ownership interests into account (net income by segment) was¥0.2 billion, about the same as in the previous fiscal year.
4) Domestic Life Insurance Business (Mitsui Sumitomo Aioi Life Insurance Co., Ltd.)
Ordinary income was ¥579.9 billion after recording insurance premiums and others of ¥520.1 billion, investment incomeof ¥57.1 billion, and other ordinary income of ¥2.6 billion. Meanwhile, ordinary expenses came to ¥560.4 billion resulting
from insurance claims and others of ¥223.7 billion, provision for underwriting reserves and others of ¥233.6 billion,
investment expenses of ¥6.0 billion, operating expenses of ¥83.2 billion, and other ordinary expenses of ¥13.5 billion.
As a result, ordinary profit was ¥19.5 billion with an increase of ¥2.5 billion from the previous fiscal year. After factoringin extraordinary income and losses, income taxes and other factors to ordinary profit, net income of ¥7.9 billion was reportedwith an increase of ¥2.6 billion from the previous fiscal year.
5) Domestic Life Insurance Business (Mitsui Sumitomo Primary Life Insurance Co., Ltd.)
Ordinary income was ¥1,342.8 billion after recording insurance premiums and others of ¥1,129.7 billion, investment
income of ¥209.4 billion, and other ordinary income of ¥3.6 billion. Meanwhile, ordinary expenses came to ¥1,307.2 billion
resulting from insurance claims and others of ¥539.5 billion, provision for underwriting reserves and others of ¥638.8 billion,
investment expenses of ¥64.9 billion, operating expenses of ¥55.0 billion, and other ordinary expenses of ¥8.8 billion.
As a result, ordinary profit was ¥35.5 billion with an increase of ¥6.6 billion from the previous fiscal year. After factoringin extraordinary income and losses, income taxes and other factors to ordinary profit, net income came to ¥23.3 billion witha decrease of ¥5.9 billion from the previous fiscal year.
6) International Business (Overseas Insurance Subsidiaries)
Net premiums written in the overseas insurance subsidiaries segment increased by ¥32.2 billion compared to the previous
fiscal year to ¥714.6 billion.
Ordinary profit was ¥22.6 billion with an increase of ¥127.0 billion from the previous fiscal year, and net income after
taking ownership interests into account (net income by segment) came to ¥19.3 billion with an increase of ¥124.0 billion
from the previous fiscal year.

(Overview of Financial Conditions in the Fiscal Year under Review)
Total assets as at March 31, 2019 stood at ¥23,132.5 billion with an increase of ¥659.6 billion from the end of the previous fiscal
year, and net assets stood at ¥2,778.0 billion with a decrease of ¥190.3 billion mainly due to a decrease in net unrealized
gains/(losses) on investments in securities.

(Overview of Cash Flows in the Fiscal Year under Review)
With regard to cash flows in the fiscal year under review, net cash flows from operating activities decreased by ¥45.9 billion overthe previous year to ¥776.7 billion, mainly due to an increase in claims payments. Net cash flows from investing activities increasedby ¥710.6 billion from the previous year, mainly due to an increase in gains on sales and redemption of securities, to ¥(252.4) billion.
In addition, net cash flows from financing activities were ¥(33.3) billion, a decrease of ¥75.6 billion over the previous year, whichmainly reflected an increase in the repurchase of treasury stock. As a result, the balance of cash and cash equivalents at the end of
the fiscal year under review stood at ¥1,798.5 billion, an increase of ¥475.0 billion from the end of the previous fiscal year.
In regard to the liquidity of funds, the MS&AD Group maintains sufficient liquid assets in preparation for any deterioration in its
cash position due to factors such as the outflow of funds arising from the payment of insurance claims or disruptions in markets. It
also evaluates liquidity in terms of both assets and liabilities based on trends regarding the inflow and outflow of funds, andconducts appropriate cash management.

3(2) Consolidated Earnings Forecasts for the Year Ending March 31, 2020
Based on the assumptions below, the Company forecasts ordinary profit of ¥298.0 billion and net income attributable to owners of
the parent of ¥200.0 billion on a consolidated basis for the year ending March 31, 2020.
 The forecast of net premiums written is based on the Company's own estimate taking into account the trends in the consolidated
business results.
 Incurred losses (the sum total of net claims paid and provision for outstanding claims) in relation to new domestic natural
catastrophes are projected to be ¥33.0 billion at Mitsui Sumitomo Insurance Co., Ltd. and ¥22.0 billion at Aioi Nissay Dowa
Insurance Co., Ltd.
 Market interest rates, currency exchange rates, and stock prices are assumed not to change substantially from the end of March
2019.
The Company’s consolidated earnings forecasts have been prepared based on certain assumed conditions, including those above,
but actual results may differ substantially from these forecasts depending on various factors.

2. Basic Stance for Adopting Accounting Standards
The Company is considering adopting International Financial Reporting Standards (IFRS) to improve international comparabilityof financial information for the capital market, and necessary actions such as information gathering and examination of introducing
process are being conducted. The adoption date has not yet been determined, but it is expected to be decided following the progressin discussion of the accounting standard for insurance contracts (IFRS 17) and other factors.

4

3. Consolidated Financial Statements and Main Notes(1) Consolidated Balance Sheets(Yen in millions)
March 31, 2018
AssetsCash, deposits and savings
Receivables under resale agreements
Receivables under securities borrowing transactions
Monetary claims bought
Money trusts
Investments in securities
Loans
Tangible fixed assets:
Land
Buildings
Lease assets
Construction in progress
Other tangible fixed assets
Intangible fixed assets:
Software
Goodwill
Lease assets
Other intangible fixed assets
Other assets
Assets for retirement benefits
Deferred tax assets
Customers' liabilities under acceptances and guarantees
Bad debt reserve
Total assets
Liabilities
Policy liabilities:
Outstanding claims
Underwriting reserves
Bonds issued
Other liabilities
Liabilities for pension and retirement benefits
Reserve for retirement benefits for officers
Accrued bonuses for employees
Reserve for reorganization by function
Reserves under the special laws:
Reserve for price fluctuation
Deferred tax liabilities
Acceptances and guarantees
Total liabilities

5

March 31, 2019

1,481,694
6,999
309,644
140,133
1,043,506
16,152,966
892,599459,624
231,456
191,374
2,711
2,379
31,701
549,50257,491
229,221218
262,570
1,297,829
30,64568,02649,500(9,746)22,472,927

1,474,306
472,377
97,241
1,544,406
16,061,871
903,006
463,356
231,671
188,947
2,032
6,746
33,959545,450
64,664203,423206
277,155
1,454,825
30,07559,31735,500(9,195)
23,132,539

16,964,512
2,213,650
14,750,861
558,191
1,328,675
184,569
538
27,592
16,341
152,928
152,928
221,690
49,50019,504,540

17,637,713
2,222,637
15,415,076
659,093
1,490,882
176,550414
27,788
6,498
173,248
173,248
146,80235,50020,354,492

(Yen in millions)
March 31, 2018
Net assets
Shareholders' equity:
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income:Net unrealized gains/(losses) on investments in securities
Net deferred gains/(losses) on hedges
Foreign currency translation adjustments
Accumulated actuarial gains/(losses) on retirement benefits
Total accumulated other comprehensive income
Stock acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

6

March 31, 2019

100,000
554,320
849,044(2,599)1,500,765

100,000
553,168
962,385(32,539)
1,583,013

1,487,258
20,043(66,274)(679)
1,440,346
566
26,7092,968,387
22,472,927

1,273,881
25,168(135,992)
4,448
1,167,505
785
26,743
2,778,047
23,132,539

(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statements of Income)Ordinary income:
Underwriting income:Net premiums written
Deposit premiums from policyholders
Investment income on deposit premiums from policyholders
Life insurance premiums
Other underwriting income
Investment income:Interest and dividends income
Investment gains on money trusts
Investment gains on trading securities
Gains on sales of securities
Gains on redemption of securities
Investment gains on separate accounts
Other investment income
Transfer of investment income on deposit premiums from policyholders

Other ordinary income:
Gains on equity method investments
Other ordinary income
Ordinary expenses:
Underwriting expenses:
Net claims paid
Loss adjustment expenses
Commissions and collection expenses
Maturity refunds to policyholders
Dividends to policyholders
Life insurance claims
Provision for outstanding claims
Provision for underwriting reserves
Other underwriting expenses
Investment expenses:
Investment losses on money trusts
Losses on sales of securities
Impairment losses on securities
Losses on redemption of securities
Losses on derivative transactions
Other investment expenses
Operating expenses and general and administrative expenses
Other ordinary expenses:
Interest expense
Provision for bad debts
Loss on bad debts
Other ordinary expenses
Ordinary profit

7

Year ended
March 31, 2018
5,217,835
4,648,110
3,440,976
86,371
43,1301,058,278
19,353550,838
286,229
8,795
29,424
151,934
1,092
115,299
1,194(43,130)
18,886
3,017
15,8685,006,286
4,157,768
1,935,165
171,041
689,066
241,099283
376,130
179,565
558,519
6,897
163,183
13,748
8,996
1,512
584
14,498123,843
669,640
15,693
9,057
215
6,420
211,548(Yen in millions)Year ended
March 31, 20195,500,438
4,918,626
3,497,572
80,23542,406
1,286,864
11,547561,169
304,142
75,461
17,237
161,608
371
43,162
1,593(42,406)
20,642
3,751
16,8905,209,590
4,406,840
2,132,155
175,703705,189
232,073149
395,989
60,981
700,502
4,096
104,806171
17,389
9,089
50
9,331
68,775680,910
17,032
10,960
696
181
5,194
290,847

Year ended
March 31, 2018
51,3489,316
42,032
42,032
18,5893,853
14,724
11
244,307
118,432(28,008)
90,423
153,884(173)
154,057

Extraordinary income:
Gains on sales of fixed assets
Reversal of reserves under the special laws:
Reversal of reserve for price fluctuation
Other extraordinary income
Extraordinary losses:
Losses on sales of fixed assets
Impairment losses on fixed assets
Provision for reserves under the special laws:
Provision for reserve for price fluctuation
Losses on reduction of tangible fixed assets
Other extraordinary losses
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Net income/(loss) attributable to non-controlling interests
Net income attributable to owners of the parent

8(Yen in millions)Year ended
March 31, 201917,06913,0694,000
28,075
2,695
2,936
20,32020,3205
2,116
279,842
88,614(3,154)85,460
194,382
1,676
192,705

(Consolidated Statements of Comprehensive Income)Net income
Other comprehensive income:Net unrealized gains/(losses) on investments in securities
Net deferred gains/(losses) on hedges
Foreign currency translation adjustments
Accumulated actuarial gains/(losses) on retirement benefits
Share of other comprehensive income of equity method investments

Total other comprehensive income
Total comprehensive income
Allocation:
Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests

9

Year ended
March 31, 2018
153,884(Yen in millions)Year ended
March 31, 2019
194,382

123,681(3,316)23,348
8,723
4,775
157,211
311,096(198,656)
4,493(61,093)
5,023(23,850)(274,084)(79,701)

309,798
1,297(80,135)434

(3) Consolidated Statements of Changes in Net Assets
For the year ended March 31, 2018 (from April 1, 2017 to March 31, 2018)(Yen in millions)Shareholders' equity
Capital surplus

Common stock
Beginning balance

100,000

Retained earnings

669,458

775,877

Total shareholders'equityTreasury stock(120,050)

1,425,285

Changes for the year:
Dividends paid
Net income attributable toowners of the parent(79,975)(79,975)

154,057

154,057
(70)

(70)

(2)

65

62

(117,455)

117,455-

Repurchase of treasury stock
Disposal of treasury stock
Cancellation of treasury stock
Changes due to merger ofconsolidated subsidiaries
with non-consolidated
subsidiaries-

Changes in the parent’s
ownership interests in
subsidiaries due totransactions with
non-controlling interests
Put options granted to
non-controlling interests
Adjustment to retained
earnings due to change in
US tax rate
Net changes of items otherthan shareholders' equity
Total changes for the year

(242)

(242)

2,562

2,562
(914)

Ending balance

(914)

-

(115,138)

73,167

117,450

75,479100,000

554,320

849,044(2,599)1,500,765

Accumulated other comprehensive income
Net unrealized
Net deferredgains/(losses)
gains/(losses)
on investmentson hedges
in securities
Beginning balance

1,360,859

23,472Foreigncurrencytranslation
adjustments(91,219)

Accumulated
Total
actuarialaccumulated
gains/(losses)
otheron retirement comprehensive
benefits
income(9,420)1,283,692

Stockacquisitionrights

Noncontrollinginterests

307

25,147

Total net
assets2,734,432

Changes for the year:
Dividends paid
Net income attributable toowners of the parent(79,975)
154,057

Repurchase of treasury stock(70)

Disposal of treasury stock

62

Cancellation of treasury stock-

Changes due to merger ofconsolidated subsidiaries
with non-consolidated
subsidiaries-

Changes in the parent’s
ownership interests in
subsidiaries due totransactions with
non-controlling interests
Put options granted to
non-controlling interests
Adjustment to retained
earnings due to change in
US tax rate
Net changes of items otherthan shareholders' equity
Total changes for the year
Ending balance

(242)

2,562
(914)
126,398(3,429)24,944

8,740

156,654

258

1,561

158,475

126,398(3,429)24,944

8,740

156,654

258

1,561

233,955

1,487,258

20,043(66,274)(679)

1,440,346

566

26,7092,968,387

10

For the year ended March 31, 2019 (from April 1, 2018 to March 31, 2019)(Yen in millions)Shareholders' equity
Common stock
Beginning balance

Capital surplus

100,000

Retained earnings

554,320

Total shareholders'equityTreasury stock

849,044(2,599)1,500,765

Changes for the year:
Dividends paid
Net income attributable toowners of the parent
Repurchase of treasury stock
Disposal of treasury stock(79,367)(79,367)

192,705

192,705(30,029)(30,029)

88

94

5

Cancellation of treasury stock-

Changes due to merger ofconsolidated subsidiaries
with non-consolidated
subsidiaries

1

Changes in the parent’s
ownership interests in
subsidiaries due totransactions with
non-controlling interests
Put options granted to
non-controlling interests
Adjustment to retained
earnings due to change in
US tax rate
Net changes of items otherthan shareholders' equity
Total changes for the year1

(1,157)(1,157)-

Ending balance-(1,151)

113,340(29,940)

82,248100,000

553,168

962,385(32,539)

1,583,013

Accumulated other comprehensive income
Net unrealized
Net deferredgains/(losses)
gains/(losses)
on investmentson hedges
in securities
Beginning balance

1,487,258

20,043Foreigncurrencytranslation
adjustments(66,274)

Accumulated
Total
actuarialaccumulated
gains/(losses)
otheron retirement comprehensive
benefits
income(679)

1,440,346

Stockacquisitionrights

Noncontrollinginterests

566

26,709Total net
assets2,968,387

Changes for the year:(79,367)

Dividends paid
Net income attributable toowners of the parent

192,705

Repurchase of treasury stock(30,029)

Disposal of treasury stock

94

Cancellation of treasury stock-

Changes due to merger ofconsolidated subsidiaries
with non-consolidated
subsidiaries

1

Changes in the parent’s
ownership interests in
subsidiaries due totransactions with
non-controlling interests
Put options granted to
non-controlling interests
Adjustment to retained
earnings due to change in
US tax rate
Net changes of items otherthan shareholders' equity
Total changes for the year
Ending balance(1,157)(213,376)

5,125(69,718)(69,718)(272,841)

218

33(272,588)(213,376)

5,125(69,718)(69,718)(272,841)

218

33(190,340)

1,273,881

25,168(135,992)

4,448

1,167,505

785

26,743

2,778,047

11

(4) Consolidated Statements of Cash Flows

Year ended
March 31, 2018
Cash flows from operating activities:
Income before income taxes
Depreciation
Impairment losses on fixed assets
Amortization of goodwill
Increase/(decrease) in outstanding claims
Increase/(decrease) in underwriting reserves
Increase/(decrease) in bad debt reserve
Increase/(decrease) in reserve for retirement benefits for officers
Increase/(decrease) in accrued bonuses for employees
Increase/(decrease) in reserve for reorganization by function
Increase/(decrease) in liabilities for pension and retirement benefits

Increase/(decrease) in reserve for price fluctuation
Interest and dividends income
Losses/(gains) on money trusts
Losses/(gains) on investments in securities
Losses/(gains) on derivative transactions
Investment losses/(gains) on separate accounts
Interest expense
Foreign exchange losses/(gains)
Losses/(gains) on disposal of tangible fixed assets
Losses/(gains) on equity method investments
Decrease/(increase) in other assets
Increase/(decrease) in other liabilities
Others, net
SubtotalInterest and dividends received
Interest paid
Income taxes refunded/(paid)
Net cash provided by/(used in) operating activities (a)12244,30764,014
14,724
11,741
160,203
546,085(1,348)(101)(1,239)(5,756)6,700(42,032)(286,229)
4,967(171,357)
14,498(115,299)
9,057
112,731(5,580)(3,017)
13,828(4,921)(10,068)
555,908
407,933(8,626)(132,575)
822,640(Yen in millions)Year ended
March 31, 2019279,842
59,483
2,936
14,63368,042
691,707
(193)
(124)
764
(9,842)(1,645)20,320(304,142)(75,272)(152,687)
9,331(43,162)
10,96065,348(10,582)(3,751)(201,857)
85,128(481)
504,754402,460(10,872)(119,619)
776,724

Year ended
March 31, 2018
Cash flows from investing activities:
Net decrease/(increase) in deposits and savings
Purchase of monetary claims bought
Proceeds from sales and redemption of monetary claims bought
Purchase of money trusts
Proceeds from sales of money trusts
Purchase of securities
Proceeds from sales and redemption of securities
Investments in loans
Collection of loans
Net increase/(decrease) in payables under repurchase agreements
Net increase/(decrease) in cash collateral under securities
borrowing and lending transactions
Others, net
Subtotal (b)(a + b)Acquisition of tangible fixed assets
Proceeds from sales of tangible fixed assets
Acquisition of intangible fixed assets
Acquisition of subsidiaries resulting in changes in scope of consolidation
Others, net
Net cash provided by/(used in) investing activities
Cash flows from financing activities:
Proceeds from borrowings
Repayments of borrowings
Issuance of bonds
Redemption of bonds
Proceeds from share issuance to non-controlling shareholders
Repurchase of treasury stock
Dividends paid to shareholders
Dividends paid to non-controlling interests
Purchase of shares of subsidiaries not resulting in changes in scope of consolidation

Others, net
Net cash provided by/(used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase/(decrease) in cash and cash equivalents
Beginning balance of cash and cash equivalents
Ending balance of cash and cash equivalents

13(Yen in millions)Year ended
March 31, 2019(18,260)(2,601)37,842(128,508)
52,173(3,595,276)
2,845,276(198,795)
184,210-

13,029(9,027)49,750(636,742)
222,626(3,929,183)
3,717,595(197,312)
178,346468,782(4,848)6,901(821,886)754(20,291)
14,461(47,645)(85,341)(2,401)(963,105)(47,807)
10,293(159,649)
617,075(32,399)
16,418(75,584)(1,202)(252,417)

55,027(30,342)
129,133(28,000)(70)(79,887)
(917)
(964)
(1,648)42,3295,738(92,396)
1,415,903
1,323,506

26,452(45,386)
99,527501(30,029)(79,286)(915)(2,359)(1,841)(33,337)(15,949)
475,019
1,323,506
1,798,526

(5) Notes to Consolidated Financial Statements(Notes to Going Concern Assumptions)Not applicable.
(Notes to Segment Information)
1 Overview of reportable segments
The reportable segments are the units of MS&AD group (“the Group”) for which separate financial information is available
and that are evaluated regularly by the board of directors in deciding allocation of resources and assessing theirperformance.
The Group's business domains comprise domestic non-life insurance business, domestic life insurance business,international business, financial services business and risk-related services business. Mitsui Sumitomo Insurance Co., Ltd.
(“MSI”), Aioi Nissay Dowa Insurance Co., Ltd. (“ADI”) and Mitsui Direct General Insurance Co., Ltd. (“Mitsui Direct
General”) primarily operate domestic non-life insurance business, and Mitsui Sumitomo Aioi Life Insurance Co., Ltd.
(“MSI Aioi Life”) and Mitsui Sumitomo Primary Life Insurance Co., Ltd. (“MSI Primary Life”) primarily operate domestic
life insurance business. The Company and domestic non-life insurance subsidiaries engage in international business, andoverseas affiliated companies also develop insurance business in various foreign countries.
Segment information is presented based on the Group's business domains where the domestic life and non-life insurance
businesses are further identified by each insurance company, resulting in six reportable segments that comprise the fivedomestic insurance companies and the international business (overseas insurance subsidiaries).
Each non-life insurance company underwrites fire and allied insurance, marine insurance, personal accident insurance,
voluntary automobile insurance, compulsory automobile liability insurance and other non-life insurance products. Each life
insurance company underwrites individual insurance, individual annuity insurance, group insurance and other life insurance
products.
2

Methods of calculating revenues, net income or loss, assets, liabilities and other items by reportable segment
The accounting methods for reportable segments are substantially the same as those mentioned in “Significant Accounting
Policies” of the Securities Report filed on June 25, 2018. Net income by segment is the amount based on net income ofeach company (after taking ownership interests into consideration).
Intersegment revenues and transfers are calculated based on prices used in transactions between the Company andindependent third parties.

14

3 Information on revenues, net income or loss, assets, liabilities and other items by reportable segment
For the year ended March 31, 2018 (from April 1, 2017 to March 31, 2018)(Yen in millions)
Domestic life insurance business

Domestic non-life insurance business

Revenues: (Note 1)
Revenues from transactions
with external customers
Intersegment revenues or transfers
Total
Net income/(loss) by segment
Assets by segment
Other items:
Depreciation
Amortization of goodwill
Interest and dividends income

Mitsui Direct
GeneralMSI Aioi LifeMSI PrimaryLife

1,178,421

37,915

381,357

674,157

30,17943,596(41)-(13,320)

1,494,362

1,222,017

37,873381,357

660,836

198,237

15,620294

5,277

29,212

7,098,216

3,486,669

61,4893,869,730

6,201,753

22,211

15,345

910

4,323

1,909

-

-

-

-

-

105,107

58,49873

44,60376,884MSI

ADI

1,464,183

Interest expense

6,721

571

-

63

0

Impairment losses on securities
Gains/(losses) on
equity method investments
Extraordinary income:

1,031

49,040

-

-

-

-

-

-

-

-

7,207

37,778-1

11,500

7,207

2,352

-

1

-

Gains on sales of fixed assets
Reversal of reserve for pricefluctuation
Extraordinary losses:-

35,425--

11,500

5,636

6,599

6

885

-

Impairment losses on fixed assets
Income taxes

860

1,979

-

-

-

65,885

21,173

117

1,597

11,227

156,490

-

-

-

-

26,14926,697

1,921

9,012

3,678

Equity method investments
Increase in tangible fixed assets
and intangible fixed assets

15

(Yen in millions)International
business
Overseas
insurance
subsidiaries

Revenues: (Note 1)
Revenues from transactions
with external customers
Intersegment revenues or transfers
Total

Others(Note 2)740,749

Amount on the
consolidated
Adjustments
financial(Notes 3,4 and 5)
statements(Note 6)

Total

24,2524,501,036(1,781)

4,499,255(55,619)(4,580)

213

(213)

-

685,130

19,671

4,501,249(1,994)4,499,255

Net income/(loss) by segment(104,672)

4,230

148,200

5,857

154,057

Assets by segment

2,967,542

119,564

23,804,965(1,332,037)

22,472,927

9,393

575

54,6699,344

64,014

Other items:
Depreciation
Amortization of goodwill
Interest and dividends income

-

-

-

11,741

11,741

14,940915

301,024(14,795)

286,229

Interest expense

16

-

7,374

1,683

9,057

Impairment losses on securities
Gains/(losses) on
equity method investments
Extraordinary income:

244-

50,316(48,804)

1,512

7,954

996

8,950

(5,932)

3,017

467

-

56,953(5,605)51,348467-

10,028

(712)

9,316

Gains on sales of fixed assets
Reversal of reserve for pricefluctuation
Extraordinary losses:--

46,925(4,892)

42,032

12,946

1,096

27,171(8,582)

18,589Impairment losses on fixed assets
Income taxes

12,925

1,094

16,859(2,135)

14,724(12,722)290

87,5702,852

90,42396,601-

253,092(16,482)

236,609

5,178

105

72,744(4,157)

68,586Equity method investments
Increase in tangible fixed assets
and intangible fixed assets(Notes)1 “Revenues” represents net premiums written for non-life insurance business, life insurance premiums for life insurance business,ordinary income for other business, and the sum total of net premiums written and life insurance premiums for “Amount on the
consolidated financial statements”.
2 “Others”, which is business segments not included in reportable segments and other revenue generating business activities,
represents domestic non-life insurance business operated by domestic non-life insurance subsidiaries other than reportable segment,
financial services business and risk-related services business operated by group companies other than domestic insurance companies
and business investments by the Company into companies other than group companies.
3 “Adjustments” in “Revenues from transactions with external customers” represents the sum total of ordinary income items otherthan net premiums written and life insurance premiums for other business.
4 “Adjustments” in “Net income/(loss) by segment” includes elimination of intersegment transactions of ¥(9,710) million,
companywide expenses not allocated to respective reportable segments of ¥(11,856) million , adjustments to impairment losses on
equities of insurance subsidiaries recognized by ADI of ¥48,656 million and adjustments to profit and loss due to application of thepurchase method to domestic insurance subsidiaries and amortization of goodwill of ¥(21,230) million. Most of the companywide
expenses are expenses associated with the Company's administrative departments that do not belong to any reportable segments.
5 “Adjustments” in “Assets by segment” includes elimination of intersegment transactions of ¥(1,328,387) million, transfers due tooffsetting reinsurance recoverables included in assets of overseas insurance subsidiaries and policy liabilities on the consolidated
financial statements of ¥(440,011) million, companywide assets not allocated to respective reportable segments of ¥44,792 million,
adjustments to assets due to application of the purchase method to domestic insurance subsidiaries and unamortized balance of
goodwill not allocated to respective reportable segments of ¥391,568 million. The companywide assets are the Company's assetsthat do not belong to any reportable segments.
6 “Net income/(loss) by segment” is reconciled with net income attributable to owners of the parent on the consolidated financial
statements.

16

For the year ended March 31, 2019 (from April 1, 2018 to March 31, 2019)(Yen in millions)
Domestic life insurance business

Domestic non-life insurance business

Revenues: (Note 1)
Revenues from transactions
with external customers
Intersegment revenues or transfers

MSI

ADI

1,478,168

1,200,387

Mitsui Direct
GeneralMSI Aioi LifeMSI PrimaryLife

36,724

362,572

921,072

31,44933,194(61)-(12,285)

1,509,617

1,233,581

36,663362,572

908,786

171,10237,307223

7,968

23,305

6,977,145

3,410,989

60,917

4,229,662

6,885,323

18,325

12,195

1,086

4,821

2,150

-

-

-

-

-

Interest and dividends income

113,91256,15055

44,921

88,316

Interest expense
Gains/(losses) on
equity method investments
Extraordinary income:

7,734

398

-

-

6

-

-

-

-

-

Total
Net income/(loss) by segment
Assets by segment
Other items:
Depreciation
Amortization of goodwill

Gains on sales of fixed assets
Extraordinary losses:
Impairment losses on fixed assets
Provision for reserve for pricefluctuation
Income taxes
Equity method investments
Increase in tangible fixed assets
and intangible fixed assets

2,982

701

-

0

-

2,982

701

-

0

-

6,095

14,463

15

1,135

3,500

639

1,569

-

-

-

4,190

11,684

8

936

3,500

52,260

10,312

120

2,578

8,782

168,468

-

-

-

-

52,17038,641

3,032

8,783

5,972

17

(Yen in millions)International
business
Overseas
insurance
subsidiaries

Revenues: (Note 1)
Revenues from transactions
with external customers
Intersegment revenues or transfers
Total
Net income/(loss) by segment
Assets by segment
Other items:
Depreciation
Amortization of goodwill

Others(Note 2)775,544

Amount on the
consolidated
Adjustments
financial(Notes 3,4 and 5)
statements(Note 6)

Total

12,4604,786,929(2,493)

4,784,436(57,678)

5,565

184

(184)

-

717,866

18,026

4,787,114(2,677)

4,784,436

19,3858,641

267,935(75,229)

192,705

3,064,516

134,078

24,762,634(1,630,094)

23,132,539

8,377

62

47,01812,46459,483---

14,633

14,633

Interest and dividends income

18,451

1,956

323,764(19,622)304,142Interest expense
Gains/(losses) on
equity method investments
Extraordinary income:

1,136

-

9,275

1,685

10,9609,946

988

10,935(7,183)

3,751

9,385

-

13,0694,000

17,069Gains on sales of fixed assets
Extraordinary losses:
Impairment losses on fixed assets
Provision for reserve for pricefluctuation
Income taxes
Equity method investments
Increase in tangible fixed assets
and intangible fixed assets

9,385

-

13,069-13,0693,622

1328,845(770)

28,075

1,442

-

3,652

(715)

2,936

-

-

20,320-20,3207,106

18581,346

4,113

85,460106,785-

275,253(32,723)

242,530

6,103

550

115,253(2,797)

112,456(Notes)1 “Revenues” represents net premiums written for non-life insurance business, life insurance premiums for life insurance business,ordinary income for other business, and the sum total of net premiums written and life insurance premiums for “Amount on the
consolidated financial statements”.
2 “Others”, which is business segments not included in reportable segments and other revenue generating business activities,
represents domestic non-life insurance business operated by domestic non-life insurance subsidiaries other than reportable segment,
financial services business and risk-related services business operated by group companies other than domestic insurance companies
and business investments by the Company into companies other than group companies.
3 “Adjustments” in “Revenues from transactions with external customers” represents the sum total of ordinary income items otherthan net premiums written and life insurance premiums for other business.
4 “Adjustments” in “Net income/(loss) by segment” includes elimination of intersegment transactions of ¥(37,823) million,
companywide expenses not allocated to respective reportable segments of ¥(11,873) million and adjustments to profit and loss due
to application of the purchase method to domestic insurance subsidiaries and amortization of goodwill of ¥(25,532)million. Most of
the companywide expenses are expenses associated with the Company's administrative departments that do not belong to any
reportable segments.
5 “Adjustments” in “Assets by segment” includes elimination of intersegment transactions of ¥(1,479,740) million, transfers due tooffsetting reinsurance recoverables included in assets of overseas insurance subsidiaries and policy liabilities on the consolidated
financial statements of ¥(499,766) million, companywide assets not allocated to respective reportable segments of ¥35,307 million,
adjustments to assets due to application of the purchase method to domestic insurance subsidiaries and unamortized balance of
goodwill not allocated to respective reportable segments of ¥314,106 million. The companywide assets are the Company's assetsthat do not belong to any reportable segments.
6 “Net income/(loss) by segment” is reconciled with net income attributable to owners of the parent on the consolidated financial
statements.

18

(Notes to Per Share Information)(Yen)
Year ended
March 31, 2018Year ended
March 31, 2019

Net assets less non-controlling interests
per share

4,964.64

4,712.11

Net income attributable to owners of theparent per share - Basic

260.04328.72

Net income attributable to owners of theparent per share - Diluted

259.98328.60(Notes)1 The bases for calculation of "Net income attributable to owners of the parent per share - Basic" and "Net income attributableto owners of the parent per share - Diluted" are as follows.
Year ended
Year ended
March 31, 2018

March 31, 2019

Net income attributable to owners of the parent per share - Basic
Net income attributable to owners of the parent (Yen in millions)

154,057

192,705--

154,057

192,705

592,418

586,215

-

-

147

212

147

212

-

-

Net income attributable to owners of the parent not attributable tocommon shareholders (Yen in millions)
Net income attributable to owners of the parent attributable tocommon stock (Yen in millions)Average number of shares of outstanding stock(in thousands of shares)
Net income attributable to owners of the parent per share - Diluted
Adjustment to net income attributable to owners of the parent(Yen in millions)
Increased number of shares of common stock(in thousands of shares)
Stock acquisition rights (in thousands of shares)
Outline of dilutive shares which were not included in the calculation of"Net income attributable to owners of the parent per share - Diluted"
because they are antidilutive for the each period
2 The bases for calculation of net assets less non-controlling interests per share are as follows.
March 31, 2018
Total net assets (Yen in millions)
Amounts deduced from net assets:(Yen in millions)

March 31, 2019

2,968,387

2,778,047

27,27527,528Stock acquisition rights (Yen in millions)

566

785

Non-controlling interests (Yen in millions)

26,70926,743

2,941,112

2,750,519

592,411583,711

Net assets attributable to common stock (Yen in millions)
Number of shares of outstanding stock to calculate net assets
less non-controlling interests per share (in thousands of shares)

19

(Notes to Significant Subsequent Events)
Transaction under common control
Based on the Agreement on Reorganization by Function concluded by the Company and its consolidated subsidiaries, Mitsui
Sumitomo Insurance Co., Ltd. (“MSI”), Aioi Nissay Dowa Insurance Co., Ltd. (“ADI”) and Mitsui Sumitomo Aioi Life
Insurance Co., Ltd. (“MSI Aioi Life”) on September 27, 2013, MSI and MSI Aioi Life as well as ADI and MSI Aioi Life
concluded the Absorption-type Company Split Agreement on June 28, 2018 due to transfer the long-term third sector products
held by MSI and ADI to MSI Aioi Life and implemented it on April 1, 2019.
(1) Outline of the transaction
1) Name and content of the businessBusiness related to the long-term third sector products held by MSI and ADI
2) Date of the business combination
April 1, 20193) Legal form of the business combination
Simplified absorption-type company split where MSI and ADI are designated as the splitting companies and MSI Aioi Lifeas the successor company
4) Company name of the successor in the business combination
Mitsui Sumitomo Aioi Life Insurance Co., Ltd.
5) Other items regarding outline of the transaction
By centralizing the product supply function in MSI Aioi Life, the Company aims to realize efficient operation through future
improvement of level of customer support and concentration of management resources, demonstrate the group’s comprehensive strength,
and to improve customer satisfaction, growth potential and earning power.
(2) Outline of the accounting treatment applied
The Company plans to account for the transaction as a transaction under common control in accordance with “AccountingStandard for Business Combinations (ASBJ Statement No. 21, January 16, 2019) and “Implementation Guidance on
Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures (ASBJ Guidance No.10,
January 16, 2019).

20