April 2,
2004
Approval of Return of the
Entrusted Operations of the Substitutional Portion of Employees' Pension Fund to the
Government, And Revised Forecast of Financial Results for Fiscal 2003 |
NIPPONKOA Insurance Co., Ltd
President: Ken Matsuzawa
1. Approval of Return of the Entrusted Operations of the Substitutional Portion of the
Employees' Pension Funds to the Government
In accordance with the enforcement of the Law Concerning
Defined-Benefit Corporate Pension Plans, NIPPONKOA Insurance Co., Ltd. ("the Company")
has received approval from the Minister of Health, Labour and Welfare on April 1, 2004,
for the return of its entrusted operations of the substitutional portion of Employees'
Pension Fund with respect to its past obligations.
Profit resulting from the said approval of the return stipulated in
Section 44-2 of "Practical Guidelines of Accounting for Retirement Benefits (Interim
Report)" (JICPA Accounting Committee Report No. 13) is currently being calculated and
will be reported as extraordinary income for fiscal 2004 ending in March 2005.
The forecast for fiscal 2003 ending March 2004 announced on November 7,
2003, which included an estimated amount of the above profit (then estimated at around 7.0
billion yen) for fiscal 2003, has been revised as described in 2 below.
2. Revision of Forecast
The Company has revised its forecast of non-consolidated financial results for fiscal 2003
(from April 1, 2003 to March 31, 2004) and its forecast of consolidated financial results
for the same period, published on November 7, 2003.
(1) Revision of Forecast of Non-consolidated Financial Results for Fiscal 2003 (From
April 1, 2003 to March 31, 2004)
<Reason for Revision of Forecast of Non-consolidated Financial
Results >
As described above in 1, the profit resulting from the return of the
entrusted operations of the substitutional portion of Employees' Pension Fund with
respect to its past obligations will be recorded for fiscal 2004 instead of fiscal 2003 as
previously assumed. This is the main factor underlying the Company's downward revision
of its forecast net income.
(2) Forecast of Consolidated Financial Results for Fiscal 2003 (From April 1, 2003 to
March 31, 2004)
<Reason for Revision of Forecast of Consolidated Financial Results
>
Following the revision of the forecast of non-consolidated financial
results as described above in (1), the Company has also revised its forecast of
consolidated financial results.
Cautionary Statement
Estimates, projections, targets and other statements contained in this
material that are not historical facts are forward-looking statements about the future
performance and plans of NIPPONKOA Insurance Co., Ltd. (the "Company"). Such forward-looking statements are based on the Company's assumptions and beliefs in light of the information currently available to
it. Therefore, those statements do not guarantee future performance, but involve risks and
uncertainties. The Company cautions you that a number of important factors could cause
actual results to differ materially from those contained in the forward-looking
statements. Such factors include, but are not limited to, (1) general economic conditions
in the Company's market, mainly Japan, (2) business conditions
in the insurance industry, especially, increased competition, (3) fluctuation of exchange
rates, and (4) the regulatory environment.
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