MS&AD_en

14/22 　Domestic Life Insurance Business: MSI Primary Life

I will now move on to discuss Mitsui Sumitomo Primary Life. Please turn to page 13. Mitsui Sumitomo Primary Life is also growing steadily. Net income in FY2012 is projected to be ￥6 billion. Losses carried forward are expected to be eliminated by the end of the current fiscal year, a mere 10 years after the company's founding. I will now explain the potential of financial institution life insurance channels, the market where Mitsui Sumitomo Primary Life operates. Please take a look at the left side of the slide. Of all household financial assets, about ￥300 trillion comprises time deposits at banks and other financial institutions. Head of households 50 years old or more hold around 85% of this amount. In these circumstances, the driving force of financial institution channels is the active participation of financial institutions and the increasing needs of elderly people. Accumulated sales have reached around ￥40 trillion. As described in the upper right of the slide, Mitsui Sumitomo Primary Life's product strategy is to provide a stable, balanced supply of variable and fixed annuities. The company has responded promptly to the changing needs of its customers. "Foreign currency-denominated, fixed, lifelong insurance", a new product, has been well received and is growing quickly. Mitsui Sumitomo Primary Life emphasizes the training of sales agents to help them sell products. In September it established a new training center in its Tokyo head office building. Mitsui Sumitomo Primary Life will continue to support its agents, and to develop a strong sales force by taking advantage of its extensive network.