NIPPONKOA Insurance Co., Ltd., (President: Ken Matsuzawa) has established a new medium-term business plan, "from ZERO - New Departures  - ", for the two years from fiscal 2004 to fiscal 2005.

Three years have passed since the founding of the NIPPONKOA Insurance Group in April 2001. During this period, we have vigorously promoted such new undertakings as over-the-counter sales through banks and sales alliances with life insurance companies to strengthen our business foundations as a new company.

Having completed the building of a solid foundation, we have positioned fiscal 2004 as the start of a new era. Our new business plan has been adopted based on our firm resolve to return to founding principles, to review everything from zero, and to create new values.

Our new medium-term business plan establishes a medium- to long-term vision for the company.

• Become a company chosen by and relied on by customers, investors, insurance agencies, and all other stakeholders

• Fulfill our corporate social responsibility

• Become a company able to achieve stable and sustainable growth and to strengthen profitability

We will work to achieve the medium- to long-term vision through the following four specific priority strategies:

1. Domestic non-life insurance strategies
2. Domestic life insurance strategies
3. Overseas strategies
4. Other business strategies

<Target for fiscal 2005>

NIPPONKOA Insurance Co., Ltd., on non-consolidated basis

Underwriting balance (excluding CALI): 55.0 billion yen
Net premiums written: 760.0 billion yen
Loss ratio: 57.8%
Expense ratio: 33.4%
Net income: 18.0 billion yen

NIPPONKOA Life Insurance Co., Ltd.

Amount of business in force for individual insurance: 3,450.0 billion yen

*Please see Exhibit 1 and Exhibit 2 for the details of the specific priority strategies and the principal numerical targets.

(Exhibit 1)

1. Domestic Non-Life Insurance Strategies

a) Marketing and Sales Strategies

• We will increase operational efficiency by integrating sales organizations, and strengthen operational functions through strategic personnel assignment and other measures.

• We will strengthen our capability to respond to customer needs through a channel strategy of restructuring and invigorating the sales network and through a marketing strategy of responding flexibly and quickly to changes in the business environment.

b) Product and Service Strategies

• We will develop salable products satisfying market needs and products that are easy-to-understand for customers. We will also work to further increase product value by providing a range of services from the point of view of customers.

• We will quickly respond to accidents and will pay insurance claims promptly. In addition, we will further increase the quality of claims-handling services overall and work to enhance customer satisfaction through a new claims-handling system that will begin full-scale operation.

c) IT Strategies

• We will implement IT development programs to achieve the highest level of operational quality and efficiency in the industry and to improve customer satisfaction.

d) Asset Management Strategies

• We will work to expand investment income by strengthening portfolio management and improving investment performance as well as strengthening management of investment risk.

2. Domestic Life Insurance Strategies

We position the domestic life insurance business operated by NIPPONKOA Life Insurance Co., Ltd. as an important strategic business contributing to the earnings of the NIPPONKOA Insurance Group. We will reconstruct our framework of promoting life insurance by strengthening the marketing capacities of sales channels, and together with product strategies such as the development of new products, we will seek to further develop our domestic life insurance business.

3. Overseas Strategies

We will work to provide a variety of services to our domestic customers operating overseas. As a strategy for the Asian region, we will strengthen our marketing hubs and underwriting facilities in China to actively promote overseas operations.

4. Other Business Strategies

We will develop a variety of businesses supplementing and strengthening our insurance business, such as defined contribution pension plans and weather derivatives, with the view of improving customer service.

(Exhibit 2)

1. Numerical Targets of Non-life Insurance Business

<Non-consolidated basis>

<Supplementary explanation for the above numerical targets>

Net Premiums Written

We aim to expand premium income by implementing the specific priority strategies centering on a) marketing and sales strategies and b) product and service strategies, referred to in domestic non-life insurance strategies.

Loss Ratio

Due to a regulatory change for compulsory automobile liability insurance (CALI), insurance claim in this line will increase, resulting in a higher loss ratio overall. However, we will continue to implement the measures toward improvement of loss ratio.

Expense Ratio

We are making intensive investments to become the industry leader in IT use. Through the resulting increase in operational efficiency and the establishment of a new profit management model, we will endeavor to improve our expense ratio

Underwriting Balance

We will work to strengthen profitability, seeking to achieve underwriting balance of 55.0 billion yen for the total of all insurance lines excluding CALI.

2. Numerical Targets for Life Insurance Business, operated by NIPPONKOA Life Insurance Co., Ltd.

<Supplementary explanation for the above numerical targets>

We will endeavor to increase the amount of new business, work to reduce policy surrenders and lapses, and thereby promote the growth of amount of business in force. Ordinary profit in the above table does not reflect additional provisioning of underwriting reserves toward achievement of the reserve level calculated by the FSA's standard method.

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.