April 27, 2004

Meiji Yasuda Life Insurance Company ("Meiji Yasuda Life", President: Ryotaro Kaneko) and NIPPONKOA Insurance Co., Ltd. ("NIPPONKOA Insurance", President: Ken Matsuzawa) hereby announce that the two companies have agreed that Meiji Yasuda Life and The Yasuda General Insurance Co., Ltd. ("Yasuda General", a subsidiary of Meiji Yasuda Life, President: Shozo Uchiyama), will transfer their shareholdings (including the shares they expect to hold) of Yasuda Direct General Insurance Co., Ltd. ("Yasuda Direct", another subsidiary of Meiji Yasuda Life, President: Isamu Hirose) to NIPPONKOA Insurance, for the purpose of further strengthening their alliance relationship in the non-life insurance business, subject to the future approval of the Financial Services Agency.

1. Background and outline

Yasuda Direct started its business in March 2001 as a joint venture between Meiji Yasuda Life (The Yasuda Mutual Life Insurance Company at the time) and Direct Line Group Ltd. ("Direct Line", headquartered in UK). Yasuda Direct has been distributing risk-differentiated automobile insurance products through direct marketing using telephone and the Internet and also through the sales personnel of Meiji Yasuda Life.

Direct Line recently offered Meiji Yasuda Life to quit as a joint venture partner of Yasuda Direct. In light of such a proposal from Direct Line, Meiji Yasuda Life offered to transfer Yasuda Direct's operations to NIPPONKOA Insurance, which is its alliance partner in non-life insurance business. Meiji Yasuda Life and NIPPONKOA Insurance have reached an agreement on the transfer of Yasuda Direct shares.

Although Yasuda Direct will become a subsidiary of NIPPOKOA Insurance, the insurance coverage and services entitled to the existing policyholders of Yasuda Direct will remain the same as before and therefore there won't be any inconvenience to them. Meiji Yasuda Life will also be able to continue to serve its customers smoothly, since all personal line non-life products distributed by Meiji Yasuda Life will be provided from the NIPPONKOA Insurance group.

In addition, NIPPONKOA Insurance aims to enhance its profitability on the consolidated basis including Yasuda Direct by utilizing its management resources and know-how in non-life insurance business.

2. Overview of the agreement

Subject to the approval of the Financial Services Agency, Meiji Yasuda Life and Yasuda General will transfer all their holdings of Yasuda Direct, including the shares that will be transferred from Direct Line, to NIPPONKOA Insurance. The transaction price will be determined at the time of transfer based upon evaluation by a third party.

3. Others

a) The non-consolidated business results of NIPPONKOA Insurance will not be affected by this transaction.

b) Yasuda Direct's new company name, new management team and other changes will be announced as soon as they are decided.

Outline of Yasuda Direct General Insurance Co., Ltd.