March 29, 2024
MS&AD Insurance Group Holdings, Inc.
Mitsui Sumitomo Insurance Co., Ltd.
Aioi Nissay Dowa Insurance Co., Ltd.

Regarding the Group joint issuance of「Tomoni Re 2024」Catastrophe Bonds
Mitsui Sumitomo Insurance Company, Limited (President: Shinichiro Funabiki, “Mistui SumitomoInsurance”) and Aioi Nissay Dowa Insurance Co., Ltd. (President: Keisuke Niiro, “Aioi Nissay DowaInsurance”) , as members of the MS&AD Insurance Group Holdings, Inc. , have jointly issued the “TomoniRe 2024” catastrophe bonds (“cat bonds” *1) in Singapore*2 covering domestic natural disaster risks in Japan.
Through appropriate use of reinsurance and cat bonds, the MS&AD Insurance Group Holdings willcontinue to strengthen risk management and improve soundness of the management, while promoting
initiatives to improve the resilience of society.
*1：This is the 7th issuance for Mitsui Sumitomo Insurance and 3rd issuance for Aioi Nissay Dowa Insurance.
*2：Singapore has introduced various initiatives to develop the market for insurance-linked securities*3, suchas an “Insurance Linked Securities Grant Scheme” to subsidize costs of cat bond issuances.
*3：A generic term for securitized products of insurance risks, which are used as a method of insurance risk
transfer through the capital markets. Investment in insurance-linked securities, enables investors toearn investment returns that have limited correlation with broader financial markets
1. Summary of “Tomoni Re 2024”
Two tranches of notes have been issued by “Tomoni Re Pte. Ltd.”, a Singapore based special-purpose
reinsurance vehicle jointly sponsored by Mitsui Sumitomo Insurance and Aioi Nissay Dowa. Each classes ofnotes provides indemnity reinsurance protection. When losses due to natural disasters in Japan exceed acertain threshold, a portion or the entire amount of the principal is paid to the sponsors as reinsurance inaccordance with the amount exceeding threshold.
The Class A tranche, will provide Mitsui Sumitomo Insurance USD 100M of typhoon and flood protection
on a per occurrence basis, realizing competitive spread in comparison with similar range of risk level. The
other Class B tranche provides Aioi Nissay Dowa USD 100M and covers both typhoon and flood on peroccurrence basis, and earthquake on a 3-year rolling aggregate basis by the same shared limit, which is thefirst cat bond structure introduced on a global basis*4.
SponsorIssuerIssuance Date
Maturity
Target Risk
Trigger
Issuance AmountSpread

Class AClass B
Mistui Sumitomo Insurance Co., Ltd
Aioi Nissay Dowa Insurance Co., Ltd
Tomoni Re Pte. Ltd.
March 2024
March end 2028（4 years）
Japanese domestic typhoon and flood risk Japanese domestic typhoon, flood andearthquake risk
Per occurrence
Typhoon and flood : Per occurrenceEarthquake : 3-yr rolling aggreagate
USD 100mil
USD 100mil（Approx. JPY 15bil*5）（Approx. JPY 15bil*5）
Collateral interest + 4.00%*6
Collateral interest + 3.25％*6*4：The first cat bond structure on a global basis to cover both typhoon and flood per occurrence, andearthquake on a 3-yr rolling aggregate by the same share limit (Source: Aon Securities)*5：Assuming USD 1＝JPY 150*6：Expected loss (calculated loss amount through catastrophie loss model) differs between Class A andClass B

【Structure】
Reinsurance＜At Issuance＞
Mitsui Sumitomo Insurance

Aioi Nissay Dowa Insurance

Notes

PremiumTomoni Re Pte. Ltd.

Proceeds(Special-Purpose

Notes

Institutional
Investors

Company)

Reinsurance

Proceeds

Premium＜In a covered event＞
Mitsui Sumitomo Insuranceor Aioi Nissay Dowa

Tomoni Re Pte. Ltd.

Reinsurance(Special-Purpose

Insurance

Company)

Redemption for
Loss Payment

Institutional
Investors【Trigger for Loss Payment/Redemption】＜Per Occurrence Trigger＞
Loss amount in excess of pre-determined trigger condition per loss event occurrence will be paid fromprincipal of cat bond with maximum limit of principal amount.

Loss payment by cat bond (up to pricinal amount)Pre-determined trigger
condition
ABCDEF＜Term Aggregate Trigger＞
Loss aggregate amount of all loss events that are in excess of pre-determined condition will be paid
from principal of cat bond with maximum limit principal amount.
In the loss events below, event B
and E will be included into loss
aggregate calculation

Pre-determined
condition

E

Loss payment bycat bond (up topricinal amount)

BA

BCDEF

Pre-determined
condition

2．Background of Cat Bond Issuance
Mitsui Sumitomo Insurance and Aioi Nissay Dowa Insurance diversified their capacity sources andsecured long-term coverage by jointly issuing catastrophe bonds, leveraging the know-how and expertise ofboth companies, while continuing to enhance the group’s risk management strategies through the purchaseof reinsurance.
- End -