MS&AD_en

20/22 　Integrated Risk Management (2): Outline of the Group’s Quantitative Management Model (Current)

• 00:26:35.6   Next, I'd like to explain the Group's quantitative management model. Please refer to page 19. We have explained that the Group adopts alarm management for regularly calculating and monitoring net asset value and total risk exposure, using an internal model. In addition to disclosing solvency margin ratios regularly in accordance with regulations, insurance companies conduct their own quantitative risk management using their own internal model. This slide shows the concept of the Group's quantitative management model. As you know, insurance companies have different internal models, and it is difficult to simply compare them from the outside. However, I believe that the main points on this slide show that our model is a conservative internal model. The difference between net asset value and total risk exposure at the end of September 2012 was ￥770 billion.