CSR Report 2014MS&AD Insurance Group

Digest Version

I am Yasuyoshi Karasawa, and I took over as president of this company, effective June 23, 2014. With this CSR Report of FY 2014, I would like to introduce the CSR initia-tives of MS&AD Insurance Group.

Since its foundation in April 2010, MS&AD Insurance Group has been consistently working together for the achievement of the medium-term management plan "New Frontier 2013," which was initiated at the inception of this company, under the philosophy of "bringing security and safety and contributing to the develop-ment of a vibrant society and to help secure a sound future for the earth, through the global insurance and financial services business." Especially for our CSR activi-ties, we have been promoting our initiatives based on our company philosophy and management vision to fulfill our social responsibilities through all our business activities.

In the meantime, over the past four years, we have experienced major natural disasters in and outside the country, including the Great East Japan Earthquake. We focused our overall group effort on the prompt payment of claims with a vital role as a group of insur-ance companies, and all our employees in all our group

companies recognize anew our social responsibility. We also have been actively working through our initiatives to prevent and reduce disasters as well as support reconstruction activities.

Using the foundation that we have built over the years as a springboard, we have embarked on our new medium-term business plan "Next Challenge 2017," setting our sights to further develop our company. The basic strategy of the Next Challenge 2017 is to reorga-nize by function, which was announced in January FY 2013, enhance group governance, and drive forward ERM (Enterprise Risk Management). The reorganization by function strategy is a business model that has never been done before, which will make business concepts of group companies clearer to demonstrate their individual strengths to maximize group synergy, and thereby enhance corporate values across the entire group while meeting the ever diversifying needs of our customers. By following through on this reorganization by function, we will swiftly realize sustainable "growth" and "business efficiency" at the same time.

Our CSR activities in 2014 have two core elements that are based on our group basic strategy of Next Chal-lenge 2017. One is "to earn trust” and the other is "to contribute to solving social issues” through “improving the quality of our products and services." Also, we will deepen our engagement by making the most of KPI (Key Performance Indicators) to visualize our progress. Toward the goal of "creating a world-leading insurance and financial services group that is always in pursuit of sustainable growth and enhancing enterprise value,” we mobilize and use the strengths of all our employees of all our group companies under the new leadership structure in order to meet the expectations of all our stakeholders every step along the way. We appreciate your continued support for our endeavors.

Representative DirectorPresident & CEO

July 2014

Message from the President

Participation in initiatives

MS&AD Insurance Group's the“reorganization by function”strategy

The MS&AD Insurance Group is addressing the challenging task of intra-Group reorgani-zation in an unprecedented style, seeking to realize further progress with a sense of speed.By means of the “reorganization by function” strategy, we are striving to attain three goals – (1) realize ‘Growth’ and ‘Efficiency’ across the entire Group, (2) reinforce our response to diverse customer needs by maximizing the leveraging of the special strengths of the two core non-life insurance companies (MSI and ADI), and (3) strengthen the Group gover-nance system centered on the Holding Com-pany – and we expect that doing this will enable the Group to achieve sustainable growth and to increase its enterprise value.

CSR information Perspectiveof disclosureMS&AD Insurance Group issues a CSR report every year so that stakeholders can understand our CSR activities.This Digest version is issued so that the overall picture of the Group's CSR approaches and the outline can be understood. Please see the CSR report on the website about the details of each approach.● Implemented actions(main items) for achieving the social responsibility that the MS&AD Insurance Group is required by stakeholders are reported by subject.●The characteristic measures in each company of the MS&AD Insurance Group are reported. (Coverage of report is as follows)

Scope of report■ Period coveredFY2013 (April 1, 2013 - March 31, 2014)* The report also includes some activities that began in April 2014 or later.

■ Publication : September 2014

■ Subject organization and abbreviationThe following is a list of abbreviations for the Group and its member companies.(Domestic Group insurance companies are indicated by asterisks.)

●MS&AD Insurance Group●MS&AD Insurance Group Holdings, Inc.　▶MS&AD Holdings●Mitsui Sumitomo Insurance Co., Ltd.　▶MSI*●Aioi Nissay Dowa Insurance Co., Ltd.　▶ADI*●Mitsui Direct General Insurance Co., Ltd.　▶Mitsui Direct General*●Mitsui Sumitomo Aioi Life Insurance Co., Ltd.　▶MSI Aioi Life*●Mitsui Sumitomo Primary Life Insurance Co., Ltd.　▶MSI Primary Life* ※We also report about activities of Affiliated Operating Companies　such as InterRisk Research Institute & Consulting.

http://www.ms-ad-hd.com/en/csr/index.htmlWebsite

PDF of CSR report (Full version) and the Digest version is downloadable.Data related to CSR approaches is listed.

Contents

1Message from the President

3CSR in the MS&AD Insurance Group

5Improvement of Quality of Products and Services

8

9

11

13

15Respect for Human Rights and Growth of Employees

18Outline of MS&AD Insurance Group

Pillar of CSR Initiatives Ⅰ

Growth with Our AgentsPillar of CSR Initiatives Ⅰ

For a Sustainable Global EnvironmentPillar of CSR Initiatives Ⅱ

Contributing to Creating a Safe and Secure SocietyPillar of CSR Initiatives Ⅱ

To Resolve Issues of Local CommunityPillar of CSR Initiatives Ⅱ

U.N. Global CompactThe MS&AD Insurance Group, following the declaration of support of the United Nations Global Compact in June 2004, by MSI as the first financial organization, will keep conducting corporate activities that respects the 10 Principles regarding human rights, labor, the environment, and anti-corruption.

Principles for Sustainable Insurance MSI signed the "Principles for Sustainable Insurance" published in June 2012 by the United Nations Environ-ment Program Finance Initiative (UNEP FI). These principles require insurance companies to consider the issues of its business activities related to the environ-ment, society, and governance in order to fulfill their role in the sustainable development of the earth.

Overview

Mitsui Sum

itom

o Insura

nce

Aio

i Nissa

y Do

wa

Insuranc

e

MS&AD Holdings

PartialHeadquartersfunctions

PartialHeadquartersfunctions

Integrated Risk ManagementForeign Business Control

TRANSFER OF THIRD-SECTORLONG-TERM CONTRACTS

MSI Aioi Life

REORGANIZATION OF OVERSEAS BUSINESSConsolidation of foreign subsidiaries/

operations

REGIONAL SALES NETWORK, COMPANYBASE CONSOLIDATION AND SHARING

BUS INE SS/SALES CHANNELREORGANIZ AT ION

Hull Insurance, Cargo Insurance,Aviation Insurance

Motor Channel Agencies which haveAioi Nissay Dowa Insurance as

a main business partner

Principles for Financial Action towards a Sustainable SocietyMSI, ADI, MSI Aioi Life, and InterRisk Research Institute & Consulting have signed the "Principles for Financial Action towards a Sustainable Society (Principles for Financial Action for the 21st Century)," which was publ ished in October 2011 to provide behavioral guidelines for financial institutions desiring to play their required roles and maintain their responsibility to build a sustainable society.

Principles for Responsible Institutional Investors≪Japan’s Stewardship Code≫In May 2014, MSI and ADI assented to the main idea of Japan’s Stewardship Code from the perspective offulfilling corporate social responsibility and announced their support.

1 CSR Report 2014 CSR Report 2014 2

CSR

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Stakeholders Explanation

Perspective of CSR Initiatives of the MS&AD Insurance Group

Key Performance Indicators (KPIs) to Promote Our CSR Initiatives

External Evaluation

Pillars of CSR Initiatives (priority issues)

We fulfill our corporate social responsibility to the stakeholders through all business activities. ●The approach is guided by Our Mission, Our Vision and Our Values.　　　●Basic principles of the approach are corporate governance, compliance, risk management, information disclosure, respect for human rights, and environmental conservation.●Our stakeholders are our customers, shareholders, agents, business par tners, employees, the environment, and local/international communities.

Based on the Group basic strategy of "Next Challenge 2017," we established the Pillars of CSR Initiatives, which we are undertaking as priority issues common across the Group.

The MS&AD Insurance Group introduced "KPIs for the promo-tion of CSR initiatives at the MS&AD Insurance Group" in three Group companies, including MS&AD Holdings, MSI, and ADI, in fiscal 2012. After fiscal 2013, the KPIs were introduced at the

Communicate with stakeholders, with customers at the center, promote the enhancement of product and service quality and improve operations to win trust.

Earning trust through the improve-ment of product and service quality.

Promote the improvement and development of products and services that contribute to resolving social issues (global environmental conservation, prevention/mitigation of disasters and accidents, low birthrate and aging population), reduce the environmental burden of our business activities and conserve biodiversity.

Contributing to the resolution of social issues through the improve-ment of product and service quality.

Pillar of CSRInitiatives Ⅱ

Mapping the Pillars of CSR Initiatives (priority issues)

three companies, Mitsui Direct General, MSI Aioi Life, and MSI Primary Life, for the aim to further our initiatives effectively in line with the PDCA cycle.

Pillar of CSRInitiatives Ⅰ

Prio

rity Issue

s

Issues Index

(1) Improvements of products/services initiated by customers' voices.

(3) Ratio of customer recommendation for company/agents (questionnaire results).

(2) Customer satisfaction for overall response to accidents. (questionnaire results)

CustomersProvide products and servicesthat meet customers' expectationsfor quality.

Agents Grow together as partners.

The Environment Take steps to protect the globalenvironment.

Local/internationalcommunities

As a member of society, contributeto its sustainable development.

EmployeesProvide a comfortable environment,a sense of purpose, andopportunities to grow.

Business partners (contractors andsuppliers, etc.)

Maintain sound relationships andcooperate to fulfill corporateresponsibility.

ShareholdersProvide appropriate disclosure ofinformation and appropriate returnsto shareholders. Strive to raise corporate value.

domestic groupinsurance

companies

MS&AD Holdings,domestic group

insurancecompanies

MS&AD Holdings,domestic group

insurancecompanies

MSI,ADI

MSI,ADI

Equal toor greaterthan theprevious

year

Equal toor greaterthan theprevious

year

Target Perfor-mance

GroupTarget

対象会社（※1）

FY2012 FY2013 FY2014

CoveredCompanies

Earn

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Co

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Satisfa

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tivities

Ratio of customers satisfied with accident response for automobile insurance.

Ratio of customers satisfied with accident response for fire, personal accident, and casualty insurance.

Ratio of customers who are willing to recommend either MSI or ADI to their friends and acquaintances.

Ratio of customers wishing to recommend any agents to their friends and acquain-tances.

Electricity consumption of all domestic locations

Paper consumption of all domestic locations (Copy paper, prints, machine tabulation)

Gasoline consumption of all domestic locations (From FY2013)

The ratio of contracts which selected the Web policy

Ratio of employees feeling pride or job satisfaction (all-employee average on a 6-point scale).

Number of female employ-ees above section manager

Ratio of employees, regardless of sex and age, feeling free and lively at workplaces (all-employee average on a 6-point scale).

(4) Disclosing new issues/risks confronting our society as a result of studies, and developing and improv-ing our products to address these new issues/risks.

Over 90.5%90.0% 90.5%

Over 90.0%90.0% 89.4%

90.0%90.0% 87.0%

90.0%90.0%

163,698MWh(-0.5%)

163,505MWh(-0.6%)

163,249MWh(-0.2%)

16,004t（＋10.9％）

15,947t（＋10.5％）

13,560t(-15.0%)

7,612kℓ（＋6.8％）

7,264KL(-2.4%)

7,126KL(-4.1%)

87.0%

70.0%65.0% 61.9%

296

4.3 points

4.0 points

24,914

11,168

(5) Electricity consumption

(9) Number of female managers (section manager or above)

(10) Employee satisfac- tion(questionnaire results), "Pride, Job satisfaction"

(11) Employee satisfac- tion (questionnaire results), "Working Vigorously"

(12) Number of employees practicing social contributionactivities（*2）

(*1) Former brochure-type covenants are replaced with "Environment-friendly covenants" which are available on the Company website (P10).(*2) Number of employees participating in or contributing to volunteer activities at work or in private.

(13) Of the above, the number of employees participating in waterside biodiversity conservation activities.

(6) Paper consumption

(7) Gasoline consumption

(8) Web policy selection rate（*1）

Perfor-mance

89.9%

89.3%

88.7%

164,521MWh

14,431t

87.6%

51.7%

231

4.3 points

4.1 points

16,142

5,697

The MS&AD Insu rance Group has been guided by Our Miss ion, Our V is ion, and Our Values to establ ish the Pi l lars (Mater ial Issues), which consider the Group's bas ic s t ra tegy in the new medium-te rm management p lan " Nex t Chal lenge 2017," and wi l l u t i l i ze key per formance indicators (KPIs) to pro-mote our CSR ini t iat ives.

CSR in the MS&AD Insurance Group

Socially Responsible Investment(SRI) is a method of investing that assesses the company not only through profitability but from a viewpoint of Corporate Social Responsibility(CSR) and this prac-tice is spreading. The MS&AD Insurance Group is utilizing the assessment provided by major SRI evaluation organizations to improve its approaches. As of July 2014, The MS&AD Insurance Group is included in the following components of SRI Index.

Importance for the MS&AD Insurance Group

Imp

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Priority Issues I:Earn customers' trust throughimprovement in quality

Priority Issues II: Resolution of Social Issues (Society)

Priority Issues II: Resolution of Social Issues (Environmental)

・FTSE4Good Index Series・Ethibel EXCELLENCE Investment Register・Morningstar Socially Responsible Investment Index 　　(MS-SRI)・ECPI® Indices　

Pilla

r IP

illar II

To contribute to the development of a vibrant society and help secure a sound future for the earth, by bringing security and safety through the global insurance and financial services business

To create a world-leading insurance and financial services group that consistently seeks sustainable growth and to enhance enterprise value

"Customer Focused," "Integrity," "Teamwork," "Innovation," "Profes-sionalism"

Our Mission Our Vision Our Values

During the drafting process of the "Next Challenge 2017," which started in April 2014, the 37 issues of ISO26000 were mapped from two perspec-tives to establish the Pillars of CSR Initiatives (priority issues). Further details can be found on the CSR Report on our website.

Earn trust through the improvement of product and service quality based on communication with stakeholders, and contribute to the resolution of social issues.

"Next Challenge 2017" Group Basic Strategy Continue the ap-

proaches

Continue the ap-

proaches

Continue the ap-

proaches

For further details,see P6

For further details,see P6

Continue the ap-

proaches

3 CSR Report 2014 CSR Report 2014 4

The MS&AD Insurance Group is developing business processes utilizing the Internet and PCs to make products and services simpler and more convenient for customers. We also have systems to provide information about insurance products and services to a wide range of customers regardless of age and ability.

Provision of understandable explanatory documents to improve convenienceMSI and ADI adopted fonts that are easy to read and identify in pamphlets and disclosure statements for explaining to customers about important areas in their documentation from October 1, 2013, with plain terms and figures. In response to customer opinions, we started to streamline our disclosure statements for fire insurance in July 2014.In addition to efforts for boosting readability and understandability of documents that are sent to customers, we have also introduced the "eco insurance certificate" and the "insurance clause on the web," which are available for browsing anywhere with a PC and other devices. This would also eliminate the concern about misplacing the information and makes the letter enlargement and data retrieval functions available.

Our declaration form won UCDA Award 2013MSI Aioi Life has introduced a life insurance declaration form designed with the aim of enabling customers to properly and completely declare their health condition. In the "Category of Life Insurance Declaration Form of UCDA Award 2013" hosted by the Universal Communication Design Association (UCDA), this declaration form won the top prize "UCDA Award 2013" (a prize for design that easily communicates information).

Initiatives for people with disabilitiesMSI has adopted SP codes, which were developed for older people or those with visual impairment, on the pamphlets for its GK Automobile Insurance, GK Fire Insurance and GK Personal Accident Insurance products. When the codes are read with a special reading unit, the recorded information is reproduced by voice.MSI and MSI Primary Life prepare pamphlets certified by the Color Universal Design Organization, an NPO entity that presents easy-to-read information to all people regardless of personal differences in color vision.

Quality Improvement in Response to Stakeholder ViewSchemes for receiving feedback from customersThe MS&AD Insurance Group has constructed various schemes to take in stakeholder opinions and reflecting them in discussions on the management level to improve our work processes and the quality of our products and services.

Customer QuestionnairesTo proactively understand the expectations and needs of our customers and improve quality, MSI and ADI ask their customers about the degree of satisfaction with the services at the time of contract, the advisability of the products and services to others, and the degree of satisfaction with accident responses through the questionnaire. As a result, they designate key performance indicators (KPIs*), and are working on efforts to gain trust through the improvement of the quality of their products and services.*KPI: Key performance indicator (P4)

Customer feedback structureDomestic Group insurance companies formulated their response policies in accordance with the "MS&AD Insurance Group Basic Policy for Responding to Customer Communications" and sincerely carry out responses to customer opinions, which include complaints, and are considering measures for improvement. MS&AD Holdings on a quarterly basis confirms the status of accepting complaints at each company, checks whether systems regarding responses to customer communications are properly managed, and reports it to the Management Committee.In addition, MSI, ADI, MSI Aioi Life, and MSI Primary Life operate a complaint handling management system in accordance with the international standard "ISO10002" (Quality Management - Customer Satisfaction - guidelines for complaints handling in organizations).

Schemes for receiving feedback from external expertsAt MSI, ADI, and MSI Aioi Life, an ad-hoc unit that engages in the quality improvement of business practices conducts periodical exchange of ideas with external professionals to secure advice for providing satisfactory products and services to customers. Those expert opinions are reported to management and utilized in quality improvement.

Schemes for receiving feedback from agentsMSI, ADI, and MSI Aioi Life utilize the opinions of agents for the development and revision of easily understandable products from the customer's perspective. By valuing communication with agents, it has established schemes like the Product Monitor Program / Proposal Box and Agent voice system to listen to opinions.

Schemes for receiving feedback from employees The MS&AD Insurance Group has adopted a system to collect employees' opinions for business improvement. Their opinions are considered at each division at the headquarters, and the feedback of results is provided through such means as bulletin board disclosure. Long-term issues are also monitored and considered by an ad-hoc unit.They also have a system where corporate executives exchange views directly with the employees in order to utilize the views of employees.

Improvement of Quality of Products and Services

The whole Group strives to improve the quality of products and services at all times, and promotes better business practices based on feedback from stakeholders, thereby winning trust from society and customers and generating growth.

Improve the Simplicity and Convenience for Customers

Pillar of CSR Initiatives I

Develop and Improve Products and Services from Stakeholders PerspectiveThe mission of MS&AD Insurance Group is to provide the best solution to social anxiety and risks, reflecting its basic focus on the public nature of the insurance and financial service business. Our aim is to deliver to people security and safety, and supporting the enrichment of their lives. We will achieve this through activities such as publicizing the results of research and studies on new social issues and risks, and developing and improving our products, while always listening to the opinions of our customers and other stakeholders, and taking into account the various changing circumstances of our environment.

Development of products and services responding to new risksFocusing on the Japanese government’s growth strategies that are attracting attention, MS&AD Insurance Group is developing new products to provide optimal coverage for those business areas. MSI is developing new products and started sales for the renewable energy field which is growing notably, for agriculture, which is an area in the sixth industry that is gathering attention, and particularly in the industrial field of extending healthy life expectancy, which is deeply related to the medical and nursing fields. Furthermore, MSI started sales of products developed in response to the increasing needs for measures against information leaking risks.We will continue to proactively develop progressive products in response to new risks that would occur with changes in policies and environments, technological innovation, and other factors.

Schemes for developing and improving products and servicesMS&AD Insurance Group analyzes and considers information obtained at any point of contact with customers and other stakeholders, so as to improve the quality of our products and services, as well as our operations. Through efforts for increasing corporate value and resolving social problems, it aims to fulfill its responsibilities to its stakeholders, and meet their expectations.

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Improvement of products and servicesbased on customers' opinions (KPI 1.) Approaches to resolve social issues (KPI 4.)

Started to respond on Saturday, Sunday, and holidays to inquiries, consultation, procedures for partial change of contents of contract in respect to Overseas traveler's insurance which can only be bought online. [MSI]

Provided tools for taking into account the readability of the font size and style of senior accident insurance pamphlets, policy conditions, and disclosure statements friendly for senior customers. [ADI]

Continued to improve screen view and operability of its website. [Mitsui Direct General]

We revised the "declaration form" in pursuit of understandability and easiness to fill out, which was certified with the "UCDA certificate," and won the "UCDA Award 2013". [MSI Aioi Life]（P5）

Prepared the "Claim Support Guide," which summarizes matters that are inquired about frequently regarding death insurance claims. We started enclosing this guide with the claim documents. [MSI Primary Life]

Developed the "Comprehensive Coverage Plan for Small and Middle-sized Water Power Generation", the "Comprehensive Coverage Plan for Food & Agribusiness," and the "Comprehensive Coverage Plan for Medical Institutes," as products to respond to new risks. [MSI] (P6・P10)

Supported sustainable development of small and middle-sized companies. [MSI/ADI]（P11)

Publicized driving methods to reduce traffic jams, encourage eco-driving, and prevent traffic accidents on a dedicated website. [Mitsui Direct General]（P12）Launched the "New Medical Insurance A (Ace) " which includes a main contract that sufficiently covers short- and long-term hospitalizations, and eight special contracts that can be selected from depending on your needs. [MSI Aioi Life] (P13)

Launched the "Tanoshimi, zutto" (pleasure for life), foreign-currency fixed amount life insurance, which responds to risks that arise from old age and the needs for building asset portfolios with the backdrop of a super-aging society becoming a reality. [MSI Primary Life]（P13）

Ou

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me

s in FY 2013

Realizing management principles (Mission) and management vision

Increasing corporate value Resolution of social problems

Development and improvementof products and servicesAnalysis/Consideration

Customers Shareholders Agents

Business Partners Employees

Local community/International society Environment

Questionnaire for customers, Complaints, Opinions, Contact Center, Home Page,

Communication with employees of agencies and the Company

IR meetings, Personalinterviews, Briefing sessions

for investors

Meetings for personnel in charge,Distributor meetings, Product monitoring

system, Posting system

Checking of outsourcing contractor

management

Questionnaire for employees, Talk with

management, Submission system

Communication with experts, NPOs, and NGOs, Dialogue and exchange with local communities, Holding of

seminars, symposiums, and other events.

Communication with experts, NPOs, NGOs, Studies on global environment

and natural disasters

Communicationwith Stakeholders

5 CSR Report 2014 CSR Report 2014 6

Cooperation with organization of agentsMSI and ADI a re suppor t ing mutua l l y p rovoked information exchange between the company and its agents th rough the agent o rgan i zat ion, so that communication is activated and services of higher quality are offered to customers. At MSI, "Mitsui Sumitomo Insurance Agent Association", organized mainly by professional agents, and "Advanced Club (AC)", formed around automobi le mechanic businesses, have been active. Taking into account the reorganization by function, AC wi l l star t to be operated jointly with ADI from October 2014. Both agent organizations are putting their best effort to upgrade their organizational setups and boost their growth through organizational activities so that agents can offer high quality services and the most optimal insurance product to customers. At ADI, the Nation-wide Professional Group (*) (AD Professional Group) was set up by professional agents. The AD Professional Group works on committee activities for enhancing growth and improve qual ity. They also conduct local and social contribution activities, to continue providing assurance and satisfaction to customers through mutual efforts between agents and the company.

(*) Organization consisting of professional agents of ADI and MSI Aioi Life Persons qualified in non-life and life insurance perform the activities.

More specialization and objectivity as well as a middle- to long-term perspective are required to provide ahigh level of support for agent management. Therefore, MSI established a career agent management support office in the sales promotion department. About 90 specialist staff in support of agent management, which encourages agents to sustain growth and accomplish thei r goals th rough per iodical meet ings (once a month)."

By setting up a "Professional Support Center " in the retail sales development department in April 2014, ADIprovided various support and education by special staff to professional agents. ADI strives to expand the business foundation of the professional agents and improve their quality, by supporting agents individuallyto help management, clerical work, and IT utilization, as well as practical training for insurance solicitors inrespect to knowledge on insurance products, peripheral knowledge, sales methods, and other information.

We strive to maintain and improve quality through ongoing dialogue with agents. We also aspire to grow with agents while supporting the work quality of agents and de-livering high-quality products and services to customers of all types.

Growth with Our AgentsPillar of CSR Initiatives I

Reliable receipt system for accident reports and the provision of information about accident response progressAt the domestic non-life insurance companies in the Group, each company's accident report reception center accepts domestic accidents reports 24 hours a day, 365 days a year. In addition, during midweek nights and holidays, in response to the customer’s request, initial support such as "contacting with the counterparty of the accident" is provided. In case of hospitalization due to injury, the company also provides a service for visits by special-assignment staff. The assigned personnel gives information on the state of progress after accidents and makes efforts to reply to their queries from their perspective.

Improvement of skills of personnelWe are enged in the quality improvement of personel directly responsible for customer support.

Good Support CampaignMSI implements training programs for telephone call-handling role-playing and for preventing complaints so employees assigned to the total loss support department can provide customers with services of a high-quality standard.

Business quality improvement projectADI is promoting the LIPS (Lady Improvement Projects), one of the project for the quality improvement of operations with a focus on female employees. This project is improving quality by improving and reviewing approaches at each workplace while presenting and sharing results of various activities at the annual national tournament.

At the Contact Centers of the Group insurance companies, synergies are being created by joint activities to raise the quality of dealings with customers and the joint use of the telephone system infrastructure.

Quality improvement in the GroupContact Center Strategy Meeting and Quality Improvement Committee The MS&AD Insurance Group holds the Group Contact Center Strategy Meetings and the Group Contact Center Quality Improvement Committee holds meetings on a regular basis, which is composed of Contact Center representatives. Besides the sharing of information, the meetings are held for the purpose of making the work of Contact Centers more efficient and improve their service quality. In ratings by HDI (Help Desk Institute), the world's largest membership association for the service and support industry, ADI received three stars, which is the highest score for inquiry counters, and MSI and ADI also received three stars for its support portal site.

Personnel exchange systemThe personal exchange system between contact centers within the Group was established, and staffs of contact centers actively interact with each other through "SV (Supervisor) networking event", "SV discussion meeting", "Mutual dispatch of trainees" and "Participation in training as an observer".

Call handling contestTo improve call-handling skills, enhance motivation and exchange between all the group company contact centers, the MS&AD Group annually conducts the Call-Handling Contest.In fiscal 2013, 15 finalists re p re s e nta t i n g e a ch company competed their call-handling skills with each other.

Sharing telephone system infrastructureThe Contact Centers of MSI, ADI, Mitsui Direct General, MSI Aioi Life, and MSI Primary Life now share a single telephone system.This telephone system infrastructure is placed in two locations, one in Chiba Prefecture and the other in Hyogo Prefecture, so that either one can take the place of the other in times of system failure at one location caused by natural disasters or mechanical hitches. This integration of telephone system infrastructure has resulted in a synergistic effect, such as the reduction of system maintenance costs.

Payment of insurance claimservice preferable to customers

Improvement of Agent Work Quality Communication with agents

Management assistance of agents

Quality Improvement of theContact Centers

Call handling contest

Scheme and system for Improvement of Agent Work QualityThe headquar ters' depar tment in charge of agent education provides education programs for agents to gain knowledge about topics, such as compliance, products, office work/systems, and sales skills. In addition, business procedures, employee behavior, and awareness reviews on the basis of customers' opinions (complaints and compliments) and examples of suggested improvements were incorporated into agent workshop sessions.

Support for Improvement of Agent Work SkillsProviding an Online Learning EnvironmentMSI and ADI have a "College" that allows for the integrated management of insurance qualifications, group training attendance, and e-learning progress by participant. The e-learning contents are used by agents and canvassers, delivering preliminary learning for seminars and qualification acquisition on compliance, details of products, and other information, which leads to better solicitation quality.MSI, every month, delivers the "Agent Educational Program", a studying tool to enable an agency to develop and educate solicitation staff independently. By delivering an information program about insurance matters, “NewsADvance” and a program to introduce good practices related to agent business, "Genba Damashii", ADI introduces information and tools useful for solicitation activities by agents and canvassers.

Training in response to the needs of agentsMSI Primary Life developed and provides a new training program for agents, "Financial Knowledge Academy," making it possible to systematically learn about fundamental financial knowledge (life planning, taxation, pensions, and inheritance) with a focuson practical knowledge.

Framework to secure quality in agent workAgent Quality Certification SystemMSI thoroughly makes agents execute a series of operations related to the solicitation of insurance called the "Fundamental Insurance Cycle" at agents. Furthermore, it established an agent quality recognition system (Q mark system) based on the quality index related to the "Fundamental Insurance Cycle" and knowledge about insurance products, damage support, and other information in an effort to boost quality.To improve the quality of agent and canvasser operations, ADI clarified the quality standards and action guidelines, which agents and canvassers need to meet for each operational process. They are now promoting the customer-oriented reform effort "Project ADvance."

Primary SUCCESS Training Center

Mariko NakaSenior staff, Service CenterMitsui Direct General

I believe that claim adjusting work that I am in charge of can help customers feel reassured the most. I wi l l st r ive to quickly pay insurance claims, respond e m path et i ca l l y to co n s u l ta t i o n s by accumulating expertise, so that customers who had an accident can rely on me. I am most motivated by customers' saying "I'm lucky that I have an insurance policy".

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The situation of global warming and biodiversity indicate that the sustainability of the world is on the verge of a crisis. MS&AD Insurance Group works on those issues by provid-ing products and services to secure "a sound future for the earth" with our stakeholders.

The Use of Sustainable ResourcesMS&AD Insurance Group provides Eco-insurance certificates and Web policy clauses, encourages the use of recycled automobile parts during car repair and other activities, in an effort to promote a circular society and reduce environmental burdens.

Eco-insurance certificants and Web policy clausesAs a part of their environmental protection activities, MSI and ADI have introduced, in lieu of documented insurance certificates (or continuing insurance certificates) and "policy leaflets," "Eco-insurance certificates" and "Web policy clauses" that can be referred to on their websites. Through these efforts, we are driving forward the reduction of paper use. To the extent that our customers agree with this idea, we support environmental protection with our donations.At ADI, customers who selected "Eco-insurance certificate" and the "Web policy clause" can receive extra "Bell Mark points." Through these activities, we are proactively involved in social contribution activities.

Use of recycled automobile componentsMSI explains to customers and auto-repair shops about recycled components in a careful and easy-to-understand manner. It also asks for customer's desires and requests, and then proposes a repair method. In addition, through alliance maintenance factories, we proactively make an effort for component repair which generates no waste parts and less environmental burdens.At ADI, for the approporate disposal of waste cars and the commercialization of recycling parts, the "total loss vehicle online auction system" was developed in collaboration with the NGP group (National network fo dismantling companies). About 25,700 units were released and approximately 1,620 companies participated in fiscal 2013.

New businesses have emerged that address the worsening issue of global warming. Through providing insurance and consulting services, we contribute to stimulating the economy and mitigating climate change by proactively supporting the growth of such businesses.

Supporting new businesses that leads to climate change mitigationIn l ine with the start of the "feed-in tariff" system established in July 2012, MSI released the "Comprehensive Coverage Plan for Mega Solar" for mega solar power producers in June 2012, and the "Comprehensive Coverage Plan for Small and Medium-sized Water Power Generation" for small and medium-sized producers of hydropower in July 2013. These plans respond to the need for risk coverage, and we support the spread of renewable energy by providing insurance products.

Environmentally friendly automobile insuranceMSI and ADI have obtained the Eco-Mark certification through the promotion of Eco-insurance certificates and Web policy clauses, and provision of information for safe driving and approaches to reduce environmental burden, such as encouraging the use of recycled automobile parts. In addition, to encourage the spread of automobiles making a higher environmental contribution, MSI, ADI, and Mitsui Direct General offer insurance discounts for environment-friendly automobiles, such as hybrid vehicles, electric vehicles, CNG (Compressed Natural Gas) vehicles. At ADI, to spread environment-friendly automobiles and to spread driver awareness, products and discounts are provided, such as the car insurance "Dohn! to Omakase" and the "PAYD" automobile insurance that is linked to driving distance.

Natural bounty provided by biodiversity (ecosystem services) is the basis of our lives and economic activities. A business model in consideration of biodiversity supports the sustainability of the entire society, which includes companies.

Biodiversity conservation consulting servicesInterRisk Research Institute & Consulting makes proposals ranging from corporate greenspace land use at such locations as business establishments and factories, to proposals on biodiversity risk assessments and business opportunities across the entire business value chain. In this area where new environmental management issues are involved, we provide services to many top global corporations with our leading-edge solutions and abundant expertise.

Japan Business Initiative for BiodiversityAs the chair company, MSI has supported the activities of the Japan Business Initiative for Conservation and Sustainable Use of Biodiversity (JBIB) since its establishment (April 2008). The activities of JBIB were referred to in the "National Biodiversity Strategy of Japan 2012-2020" and is highly regarded as one of the bodies with which the government should pursue further collaboration and cooperation.

Supporting the creation of a biodiversity-friendly local communities (Indonesia)MSI has promoted the Indonesia tropical rain forest recovery project. Since 2005, in cooperation with the Department of Forestry of Indonesia, we have planted approximately 300,000 trees to restore and rehabilitate wildlife sanctuaries, which deteriorated due to illegal logging by local residents during the economic crisis around 1997. To prevent the residents from illegally cutting down trees again, agricultural technical guidance for financial independence and environmental education for teachers of elementary schools were implemented. In this way, we aim at creating a sustainable local community capable of restoring forests. In FY2014, Indonesian parliament members visited and inspected the forest, and highly praised the project, saying it could be a model of reforestation in other regions.

Climate change is already a reality in progress. We will mitigate climate change, and as a business that provides risk solutions, we will support mitigation measures by assessing and controlling risks caused by climate change impacts.

Supporting Corporate Adaptation Measures

Risk management consulting servicesAt InterRisk Research Institute & Consulting, we utilize our high and leading level of expertise on the environment to provide risk solutions such as analyzing environmental risks that cause damages to corporations, consulting on risk prevention and mitigation, establishing environmental management systems, and providing a variety of survey research.

Weather derivativesMSI sells weather derivative products which helps hedge or mitigate losses caused by unfavorable weather, and the U.S. subsidiary MSI GuaranteedWeather also provides weather risk hedging instruments. This company has been awarded the "Best Dealer, Asia" award four times by the U.K. monthly magazine "Environmental Finance" in the area of weather derivatives.

Support to establish disaster preparation systems

Pacific Disaster Risk Financing Pilot ProgramSince 2013, MSI has been participating in the "Pacific Disaster Risk Financing Pilot Program," which was cofounded by the Japanese government and the World Bank.This program is designed to finance quick reconstruction funds to the vulnerable Pacific Island countries, when they are afflicted by natural disasters. As the frequency of large-scale disasters is increasing, through this program, we aid the natural disaster activities in the Pacific area, and we fulfill our social responsibilities in the area.

Support on Thailand's Natural-disaster insurance schemeWith natural disasters taking place repeatedly causing immense damage around the world, the Thai government has instituted "Thai Natural Disaster Insurance System," after learning lessons from the flood damage that occurred in 2011. MSI assisted the establishment of this system. This contribution to the Thai insurance industry, which included the concerted recovery efforts for the Thai flooding recieved high recognition.

At MS&AD Insurance Group, all companies and employees are working together to reduce environmental burdens from our business activities by enhancing our environmental management systems.

ISO140001 certification and maintenanceWith coverage of all the headquarters of 7 Group companies*, ISO14001 certification is acquired and activities are conducted to keep this certification. At each site of each company, we are promoting environmental and social contribution activities with the entire Group based on our unique management system "OUR EARTH Project."

(*) MS&AD Holdings, MSI, ADI, Mitsui Direct General, MSI Aioi Life, MSI Primary Life, InterRisk Research ＆ Consulting

Domestic Group environmental burden performanceWe strive to reduce the consumption of energy and paper because these areas have the biggest impacts among the environmental burdens generated by our business activities. We constantly reduce environmental burdens by curbing the increase of special factors such as site relocation and system integration.

For a Sustainable Global EnvironmentPillar of CSR Initiatives II

Supporting Climate Change Response

Supporting the Sustainable Use of Ecosystem Services

Contributing to mitigating climate change

Fiscal 2013

Electricity

Gasoline

Paper

168,269MWh

7,126kl

15,969t　　

Fiscal 2012 Change from the previous fiscal year

166,109MWh

7,437kl

14,445t　　

1.3%

▲4.2%

10.6%Education programHarvesting work during training of agricultural techniques

The status of reduced environmental burden from business activities

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Providing an application for accident prevention and disaster preparationMSI and ADI provide free applications for smartphones.MSI offers "SumaHo," which can be used to check and change customers’ policies and provides "Emergency Navigation" that is useful at the time of an accident or a breakdown and the

"Driving Capabilitydiagnosis" that provides advice based on the analysis and diagnosis of your driving abilities.ADI offers "Sapo NAVI," which has the driving diagnostic function that analyzes and diagnoses individual driving abilities, and provides advice. It also has the function that notifies points on the route to the destination where accidents frequently occur.

MUJICOLOGY! ProjectMitsui Direct General invited Professor Katsuhiro Nishinari, the University of Tokyo, Research Center for Advanced Science and Technology, as the president of the "MUJICOLOGY! Laboratory" center for disseminating information, which is a part of the "MUJICOLOGY! Project," a campaign aiming to achieve a car society without accidents. In addition, lecture videos on "jamology" were released, and a symposium was also held.

Support for a safe and secure bicycle lifestyleWith the recent increase in serious accidents caused by bicycles and the court decision that called for heavy reparations, there is a growing social need for insurance policies. In response to this, MSI has released the insurance for bicycles, which can be filled out online. In addition, MSI made booklets and a website that compiles the safety rules and driving manners that cyclists should observe, to deliver safety and security to our customers.ADI has continued to conduct the "Awareness campaign for preventing bicycle accidents" together with the Tokyo metropolitan government, police offices, and other autonomous bodies since 2011. In FY2013, where there are a lot of bicycle users in the tokyo metropolitan area, such as in front of train stations, we handed out leaflets on safety rules and examples of accidents related to bicycles, appealing for the importance of safe bicycle riding.

Provision of automobile risk management services to corporate customersIn addition to preventing economic loss and cost cutting, it is a pressing issue for companies to prevent and decrease traffic accidents from the viewpoint of CSR. MSI, ADI, and InterRisk Research Institute & Consulting provide to corporate customers various effective programs and solutions to prevent and decrease accidents.

Education for Traffic Accident Prevention (Thailand)MSI Thailand branch is promoting "Contribution of Helmets for Students and Enlightening Accident Prevention" and "Anti-drunk Driving Charity" every year to contribute to the prevention of traffic accidents in the local region. In FY2013, a driving seminar for elementary school students was held in Samut Prakan, and 3,000 helmets for students were donated.In the Anti-Drunk Driving Charity, a competition for video clips on the elimination of drunk driving was held for college students. These videos were used for the anti-drunk driving campaign.

Safety campaign at school (Taiwan)Mingtai Insurance, MSI's local entity in Taiwan, held the events as shown below for the purpose of improving safety and preventing risks on campus for schools (kindergarten - high school) all over Taiwan, which were implemented in continuation from FY2012.

The MS&AD Insurance Group is preparing a company-wide insurance payment scheme to fulfill our mission as an insurance company of paying insurance claims as soon as possible to customers affected by disaster. Measures include setting up local disaster-response rooms and dispatching additional support staff to the field for when a large scale disaster occurs. We also consider supporting the mitigation of damages from disasters and preparation for early restoration as our social responsibility.

Spreading earthquake insuranceAfter the Great East Japan Earthquake, we received many opinions ("it was really good to have joined earthquake insurance") from disaster victims at the time of payment of insurance. MSI and ADI rediscovered the importance of customers understanding the necessity and the contents of earthquake insurance correctly. We are advancing activities to spread earthquake insurance to many people.

Support for implementing corporate earthquake countermeasures and Business Continuity Plans (BCPs) The MS&AD Insurance Group is actively engaged in advisory services for mitigating earthquake and tsunami damage, and formulating Business Continuity Plans (BCPs). Operational drills with disaster scenarios are also supported in an effort to "contribute to the creation of a flexible and robust society from the prevention and mitigation of disasters to business continuity.” In 2013, a new tool to support the formulation of corporate BCPs was released. We were also involved in the formulation of the BCP formulation support tool, the "Miyagi Corporate BCP Formulation Guideline" for Miyagi Prefecture.In recognition of our knowledge and experience related to Business Continuity Management (BCM) and our activities spreading public awareness that we have conducted so far, an employee of InterRisk Research Institute & Consulting won the "BCI Asia Award *" as the first Japanese individual to receive this award. We will keep on providing valid and useful information on how to cope with the pressing issues of BCP measures.

(*) An award hosted by an international NPO "BCI (The Business Continuity Institute)" which spreads and raises BCM awareness

Sapo NAVI

SumaHo

Contributing to Creating a Safe and Secure SocietyPillar of CSR Initiatives II

Supporting Preparation for Large-Scale Disasters

For many companies, overseas expansion is a critical business strategy issue. For example, shrinking domestic markets are triggering expansions into overseas markets, and increasing overseas operations is requiring special measures as a supplier, requiring diversifying risk factors such as considering natural disasters when locating production sites. The MS&AD Insurance Group provides products and services in preparation for various risks arising from expanding operations overseas.

Supporting small and medium-sized companies to expand overseas operationsAs a company that provides small and medium-sized companies a high level of expertise based on the June 2013 "Act on Support for Strengthening Management Functions for SMEs," MSI was the first insurance company to be certified as a "supporting organization for management innovation." MSI holds a "seminar on overseas expansion" and a "seminar for advancing into Asian emerging economies" on a regular basis in collaboration with financial institutes, local governments, and other entities, in order to support small and medium-sized companies to expand overseas operations.In addition, we provide appropriate advice regarding local risk management and general matters about insurance using our overseas network, which includes 39 countries. This is done through the "SMEs' Overseas Development Fastpass" system, which we were certified as a supporting organization by Japan's Ministry of Economy, Trade, and Industry.

Insurance for Overseas Crisis Management Expenses (joint development)MSI and ADI jointly developed Insurance for Overseas Crisis Management Expenses for small- and medium-sized companies expanding overseas operations. This product covers expenses incurred by the company for emergency evacuations of their employees and continuing business in overseas emergency situations such as wars, terrorist attacks, and natural disasters. The product comprehensively covers risks which had been ineligible for coverage so quick decisions can be made during emergencies.

Support for the Reconstruction after the Great East Japan EarthquakeToward a quick recovery of the disaster-afflicted areas, the MS&AD Insurance Group has conducted activities, such as quick payments of earthquake insurance claims, donation of relief money, and volunteer activities.As the stage shifts from recovery to reconstruction, MSI has worked on various support activities in collaboration with local governments. Specifically, we participate in the "Regional Recovery Matching 'Yui-no-Ba Activities'," which is sponsored by the Recovery Agency as a partner company, and we support the spread of corporate BCPs as well as the market and overseas expansion of companies.

Support for Sustainable Development of Small and Medium-sized Companies

Initiatives to Reduce Traffic Accidents

Original characters"Mujicoro" and "Mujicorin"

To provide an opportunity to improve safety consciousness regarding school life, musical theaters were performed at 22 elementary schools. The number of audiences amounted to 7,800 combining parents and students, exceeding 11,000 including the number in 2012. To raise safety awareness, edited DVDs were delivered as educational materials to elementary schools all over Taiwan.

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Under the our Mission of providing security and safety through the global insurance and financial service business, the entire Group has made efforts to prepare for a wide range of risks such as sup-porting disaster prevention and mitigation measures, and reducing traffic accidents.

Yukitaka SakamotoManager, ReconstructionPromotion Section,Tohoku DivisionMSI

While starting with approaches such as donation of relief money, volunteer activities, and other activities shortly after the disaster, MSI believes that, in order to continue to support the reconstruction of the devastated areas in the long term, it is necessary to work not only from the viewpoint of social contribution, but also as a part of the local economic activities. We will sincerely address the reconstruction of the devastated areas for many years to come, in cooperation with local governments and other companies.

My Value

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MS&AD Insurance Group is involved in consulting services for companies regarding biodiversity conservation as well as volunteering activities and tree planting activities by employees.

"MS&AD Ramsar Supporters"As a part of biodiversity conservation activities of Ramsar Convention registered wetlands, we conduct volunteer activities by employees and their families and biological assessments at eight locations around the country. In addition, from January 2014, we have created an education program for spreading awareness to the next generation and began traveling lectures at elementary schools.

Transmitting information from "ECOM Surugadai"The public environmental communication space "ECOM Surugadai" was opened in May 2012. This space has the role of transmitting information to the community about the surrounding green spaces, and hosting events. In addition, with the theme of urban biodiversity for urban development, it conducts activities in cooperation with local governments and universities.

Tropical rainforests recoveryAt MSI and ADI, activites such as Eco insurance certificates and Web policy clauses that helps reduce paper use are leading to the recovery of tropical rainforests in asia. We also are restoring wild animal protection forests in Indonesia and are planting trees in the Philippines.

Providing medical information andawareness-spreading activitiesIn addition to providing excellent primary insurance contracts that allows short- to long-term hospitalization, MSI Aioi Life released the "New Medical Insurance A (Ace)" in 2013, which allows the selection of special contracts based on customer needs, such as lump-sum insurance payments for cancer or one of the other three main diseases, or insurance for doctor visits needed for cancer treatments. In addition, it is a part of our social mission to inform people about healthcare, which is evolving everyday. To achieve this, we are proactive in hosting seminars on leading medical practices, distributing booklets, and disseminating information through our Website.In addition, MSI Aioi Life promotes the "Cerebral Stroke Project" to increase the awareness of cerebral stroke prevention in collaboration with the Japan Stroke Association.

Provision of insurance corresponding to the super-aged societyIn Japan, one in three people are expected be elderly by 2035. In order to meet the needs of preparing for retirement funds and asset building with the ar r ival of a super-aged society, MSI Primary Life serialized the foreign-currency-denominated fixed whole-life insurance "Shiawase Zutto," and sells "Tanoshimi Zutto." It meets the needs of wanting to use the increased amount for yourself while still leaving a future behind for your family.

Activities of sending vaccinesIn the world, a lot of children die of infections that can only be prevented with vaccines. One of the U.N. Millennium Development Goals is to decrease the death rate of children under five years old to one third of the level in 1990 by 2015.With the fervent wish to cherish and sustain "life" ever into the future, MSI Aioi Life has launched a campaign to donate funds in the sum corresponding to the number of newly contracted "&Life" brand of insurance products to the "Japan Committee Vaccines for the World's Children (JCV)", a certified NPO incorporation, to defray the purchase cost of vaccine, etc. In fiscal 2013, the corresponding number of new contracts amounted to the donation of 131,000 people equivalent of polio vaccines.

Creation of employment in rural areas (India)Cholamandalam MS General Insurance Company Limited, a local subsidiary of MSI in India, planned two years ago to entrust the issuance of insurance policies in rural areas to a NGO, to create employment opportunities for residents in rural areas where there are no job opportunities other than agriculture. As a result of education conducted continuously about topics from insurance products to English lessons, approximately 180 staffs are presently engaged in issuing insurance policies for automobile insurance and individual medical insurance. They issue about 600,000 policies annually.

Traveling lecture

©JCV

To Resolve Issues of Local CommunityPillar of CSR Initiatives II

Supporting a Healthy and Enriched Life

Each one of our employees conducts a range of activities domestically and internationally, while they think about what can be done and what kind of activities would be useful to our lives, to the areas where we operate our business, and to society.

Group Disaster ReliefThe MS&AD Insurance Group has the "Disaster Relief Matching Gift System" where the Group donates on top of the relief money donated by employees for disaster victims.In fiscal 2013, with the Shimane and Yamaguchi prefectures heavy rain disaster in July, the Philippines Typhoon Haiyan in November, and the nine domestic and overseas disaster cases, a total of ￥37,250,000 of relief money was donated from 18,086 employees combined with the additional company donation.

MS&AD Unison Smile ClubAt the MS&AD Insurance Group, employees who support an activity donate ￥100 apiece from their salary to NPOs, to social contribution programs by branch departments, to host charity events, and to send knitted goods to children living in the mountain regions of Vietnam. The number of the participants in the whole Group was about 17,886 as of the end of March, 2014.

Approaches for Preserving Biodiversity

Community contribution activities around the countryAt each company of the MS&AD Insurance Group, community contribution activities are conducted that meet the local needs at each site around the country. At overseas local subsidiaries, we also actively conduct environmental protection and philanthropic activites.

"Let’s present knitted goods tochildren around the world" project

ECOM Surugadai

MSICleaning activites and biodiversity learning and surveying at the Hyogo Prefecture Koshien Seaside Park.

ADITraffic safety awareness activity in front of Shibuya Station in Tokyo

MSI Aioi LifeFlowerbed and greenspace cultivaiton activities at the Zoorasia Yokohama Zoological Gardens

Mitsui Sumitomo Insurance (London Management) Ltd, the UK local subsidiary for MSIThe CSR working group

Biological assessments

As a member of society and to contribute to its sustainable development, we will ad-vance initiatives through our insurance and finance business, while continuing our activi-ties to solve local community issues with our environmental conservation activities lead by our employees and our contributions to local communities.

Social Contribution Activities by Employees

Yoshinori YasumotoManager, Corporate Planning DepartmentMS&AD Holdings

We par t icipated in the Ramsar Suppor ter activities at Yatsu-higata. My sons observed creatures with many participants from group companies, and observed them doing clean-up activities. My sons really enjoyed the event, saying "I want to do it again!"Currently, the Group is moving forward with an unprecedented business model "Reorganization by Function". Through daily work and participating in activities like this, I would like to help strengthen the Group's teamwork skills and take on challenges together.

My Value

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Education and trainingDomestic Group insurance companies offer various opportunities for self-education, including training sessions and external correspondence courses, to assist employees with their self-directed learning and development. In fiscal 2014, we held a one-day group training session for all new employees of the 10 Group companies in an effort to foster a sense of unity among Group employees.

Developing global human assetsAt MSI and ADI, to develop human assets that can support the global expansion of our business, we have overseas and external dispatching training programs. In addition, to expand the foundation of human assets like these, we also conduct group training.Furthermore, MSI has the Global Trainee System where Japanese employees can gain work experience at overseas bases and local employees of overseas bases can gain work experience in Japan.

Innovation of employee rolesTo enhance employees, role inovation and human asset development, MSI has the "Be Professional for All" initiative and ADI has the "Innovation of Individual Roles" initiative. We support employees that take on new challenges and we are also leading to the success of women.

Award for Companies Providing Career Support in 2013MSI was highly recognized for its support of voluntar career development and was awarded the "Award for Companies Providing Career Support in 2013" for the f i r s t t ime in the insurance industry by the Ministry of Health, Labor and Welfare.

Supporting challenges

Trainee systemDomestic Group insurance companies have the Trainee System, which enables employees to have a short-term experience in of roles they have not experienced before and workplaces they have an interest in. Through this program we help employees understand the work of other divisions or the work of another company.

In-house application systemMSI, ADI, MSI Aioi Life provide In-house application system. This system contributes for the support of career-building of employees who have a strong challenging spirit and have recorded a certain amount of achievement in their current position.

Share of management positions occupied by women (figures in parentheses indicate number of persons)

Employment rate of people with disabilities

Development of human assetsThe MS&AD Insurance Group envisions the ideal employee to be "Employees who learn and think by themselves, take up challenges, and continue to grow." At domestic Group insurance companies, for employees to work as professionals that feel pride and are satisfied with their jobs, we educate and support staff through measures including "OJT* " and "Self-education."(*) OJT: On the Job Training Employment of people with disabilities

The MS&AD Insurance Group companies continue to engage in hiring activities to expand and anchor places of employment for the disabled. They are also conditioning workplaces and developing duties to facilitate work by people with disabilities. At the end of fiscal 2013, all domestic Group companies fulfilled the minimum employment rate (2.00%) required by law.

Employment for the elderlyThe MS&AD Insurance Group has a rehiring program for employees who have reached retirement age. The program allows employees to continue exercising their talents by applying their experience and skills. Several work options are offered by job types, number of working days, and work hours so that a variety of working patterns are available to choose from.

In order to promote the Group management consciousness about global environmental changes, it is important to combine the abilities of individual employees with diverse values. The MS&AD Insurance Group gives all ambitious employees the opportunity to grow and demonstrate their talents through their work.

Promotion of diversity

The MS&AD Insurance Group conducts activities while respecting human rights as a company, by supporting the Universal Declaration of Human Rights through signing on to the UN Global Compact.

Training on human rights To further deepen understanding about human rights and corporate social responsibility and to foster wareness about respecting human r ights, each group company is conducting awareness training regarding human rights. In fiscal 2013, we provided workplace training for all employees with common training materials under the theme of "considering power harassment during the daily routine at the workplace".

Respect for human rights

We will actively work to realize the vision of the Next Challenge 2017, aiming for our new growth without limiting ourselves.①In support of career development, we will enhance our

knowledge and provide opportunities to broaden our field of vision.

②In support of balancing our work with life, we will implement measures to assist ambitious employees to continue working while meeting other life commitments.

③In support of creating a productive workplace atmosphere, we will foster an environment that encourages women to take challenges.

Respect for Human Rights and Growth of EmployeesThe MS&AD Insurance Group's "Next Chal lenge 2017 ", posi t ions "em-bedding a corporate cu l tu re where employees take on chal lenges as p ro fess ionals and developing human assets" as one o f i t s bas ic st rategies, which we wi l l work on as our duty.

Promoting the role of femalesThe MS&AD Insurance Group considers it important for female employees to expand their roles beyond traditional boundaries for the sustained growth of companies. In 2011, we instituted the joint declaration for promoting the role of female employees and are supporting them to build their careers.

Fiscal 2012 Fiscal 2013

MSI

ADI

Mitsui Direct General

MSI Aioi Life

MSI Primary Life

2.1%（90）　

4.0%（141）

1.8% （1）　

1.2% （3）

6.4%（10）

2.9%（120）

4.4%（159）

1.8% （1）

2.1% （6）

6.7%（10）

MSI

ADI

Mitsui Direct General

MSI Aioi Life

MSI Primary Life

Domestic Group insurance companies

2.12%

2.02%

2.73%

2.08%

2.08%

2.08%

Employee opinion pollThe MS&AD Insurance Group conducs an opinion poll every year for all employees in the Group to spread awareness about the Group's Mission, Vision and Values, as well as to check whether employee growth and work motivation is being realized. The result of the poll is implemented as one of the KPIs for our CSR initiatives.

Diversity Management Selection 100ADI won a prize in "2013 Diversity Management Selection 100" hosted b y t h e M i n i s t r y o f Economy, Trade and Industry, in recognition o f i t s i n i t i a t i v e s promoting divers i ty and the role of female employees.

Reporting System In order to prevent illegal, unfair and unethical conduct from being neglected and spread, the MS&AD Insurance Group has in place a reporting system that employees can directly report through so the company can promptly recognize the facts and take necessary measures.

　The following matters are subject to the reporting system.

　○ Any matters related to non-compliance

　○ Employee mental, physical, health and other issues, caused by sexual harrassment, power harrassment, and other types of harassments

　○ Any matters related to working environment, such as work hours and overtime work

one-day group training session for all new employees of the ten Group companies

Commendation ceremony

Joint declaration

Atsushi HosakaManager, Claims Section,Policyholder ServicesDepartment.MSI Primary Life

U s i n g t h e G r o u p' s T r a i n e e Sy s te m, I participated in the training at the Claims Administration department of MSI Aioi Life. As I often hear customers saying "procedures for life insurance claim are difficult." This is why I work on revising claim documents and preparing a claim support guide with illustrations, while referring to my experiences at the company and giv ing customers first priority. In order to reassure and satisfy customers regarding insurance claims, which are apt to be considered difficult, I will keep in mind to sincerely respond to customers.

My Value

Tomoko IshidaManager,Tokyo Kita BranchADI

When challenging a new field, it is necessary to be prepared. Feeling anxious that my potential for growth was limited when continuing to do only administrative work, I challenged myself, such as by transferring to sales from the back-office and getting promoted to section manager. With support from my colleagues, I have continued to take on challenges while preparing myself to do so without complaining. I would like to use my own experience to support others who challenge themselves.

My Value

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Outline of MS&AD Insurance GroupThe MS&AD Insurance Group values the diverse outlooks on values of employees, so we are enhancing the work environment and support measures so employees can work energetically and experience job satisfaction and growth, while striking a good balance between work and life.

Support of employees raising childrenThe MS&AD Insurance Group provides various supporting systems for employees raising children.To make it easier for female employees who are going to give birth to take childcare leave, MSI, Mitsui Direct General, MSI Aioi Life, and MSI Primary Life have implemented a system where substitutes are assigned. In addition, MSI and ADI also hold seminars that assist the smooth return to work for employees after they have taken child care leave.We also prepare shorter working hours and flextime systeme better than required by law for employees that have returned to work. Furthermore, from April 2013, we have expanded the scope of eligible users of the in-house day-care center at ADI, allowing employees of the four companies ADI, MSI, MSI Aioi Life, and Mitsui Direct General to use it.

Elderly care supportWe have in place a system which supports employees to continue work while caring for a family member. MSI and MSI Aioi Life provide leave for nursing relatives and temporary retirement for nursing. In addition to leave for nursing and temporary retirement for nursing, ADI has provisions for shorter hours for nursing, and also has a provision to rehire employees who retired for nursing reasons.

Innovation of work stylesMSI considers it to be important to encourage their employees to go home early for the improvement of work-life balance and help them increase productivity during limited hours.To enable compatibility between innovation of work and work styles and improve productivity, ADI is striving to innovate the role of each employee.

Implementation of Family Day (Company tour for family)MSI holds Family Day, where families who support our employees are invited to the workplace, in order to deepen their understanding about the company and the workplace, and for the children to learn about hte importance of work. By increasing communication at the workplace, this event has led to the creation of a more lively and active working environment.

Achievement of work-life balance

The MS&AD Insurance Group aims to create a workplace where all employees can work lively with good physical and mental health.

Health management of employeesWe operate a Group-unified medical checkup system that enables group employees to get health check-ups and results no matter where they are employed. For the employees who need a follow-up health check, the welfare guidance by industrial doctors and nurses are provided at each company’s health management departments.

Mental health of employeesWith the cooperation between the health management centers and employee consultation offices, MSI is assisting with quick recovery in mind.ADI is undertaking prevention activities through training as well as establishing an internal and external contact point to build a system where employees can seek consultation without worry. We also provide consultation to employees under treatment, to support employees returning to work and to employees after they return to work.

Safeguarding employees' health

Temporary Leave for Childcare

Childcare, Nursing Provisions for

Shorter Hours, etc.

Temporary Leave

for Nursing

MSI

ADI

MSI Aioi Life

244（239）

267（206）

25 （19）

185（153）

309（242）

27 （14）

4（5）

8（8）

2（1）

Visiting parent's workplace

The in-house day-care center for children

Exchanging name cards for the first time

Actual use of child-support program, care support program in fiscal 2013(figure for fiscal 2012 in parentheses)

Mariko MitaDeputy Manager,Medical UnderwritingSection UnderwritingDepartmentMSI Aioi Life

Presently, I work while raising a child by using the shorter working hour system. While it felt difficult to execute duties efficiently within the prescr ibed work ing hours, I have received the cooperation from all the members of my department including the support staff, who are aware of the necessity of mutual support. This is why I really feel the value and preciousness of teamwork every day. I will work hard on my day-to-day duties, so that I will become able to support other members in the future.

My Value

Directly invested affiliated operating companies

Mitsui Sumitomo Insurance Co., Ltd.

Aioi Nissay Dowa Insurance Co., Ltd.

Mitsui Direct General Insurance Co., Ltd.

Mitsui Sumitomo Aioi Life Insurance Co., Ltd.

Mitsui Sumitomo Primary Life Insurance Co., Ltd.

・InterRisk Research Institute & Consulting, Inc.・MS&AD Business Support Co., Ltd.・MS&AD Staffing Service Co., Ltd.・MS&AD Systems Co., Ltd. ・MS&AD Business Service Co., Ltd.・MS&AD Research Institute Co., Ltd.・ANSHIN DIAL Co., Ltd.

Group Organization Chart (as of July 1, 2014)

Net premiums written by Insurance Category

(As of March 31, 2014)

MS&AD Insurance Group Holdings, Inc.Corporate Name

Apr. 1, 2008(Name changed on Apr. 1, 2010)

Date Established

100,000,000,000 yenPaid-in Capital

Headquarters27-2, Shinkawa 2-chome, Chuo-ku, Tokyo, Japan(Effective after October 1, 2014)

¥2,811.6 bn

CompulsoryAutomobile Liability¥338.2 bn 12.0%

Other¥357.4 bn 12.7%

Voluntary Automobile

¥1,393.1 bn 49.5%

Personal Accident¥227.5 bn 8.1%

Marine¥97.0 bn 3.5%

Fire and Allied¥398.1 bn 14.2%

Company Data

Structure

Fiscal 2013 Key Financial Data (consolidated data)

Business DevelopmentMS&AD Holdings is a listed holding company with five directly invested Group insurance companies in Japan: Mitsui Sumitomo Insurance Co., Ltd. (MSI), Aioi Nissay Dowa Insurance Co., Ltd.(ADI), Mitsui Direct General Insurance Co., Ltd. (Mitsui Direct General), Mitsui Sumitomo Aioi Life Insurance Co., Ltd. (MSI Aioi Life) and Mitsui Sumitomo Primary Life Insurance Co., Ltd. (MSI Primary Life); and seven affil iated operating companies: InterRisk Research Institute & Consulting, Inc., MS&AD Business Support Co., Ltd., MS&AD Staffing Service Co., Ltd., MS&AD Systems Co., Ltd., MS&AD Business Service Co., Ltd., MS&AD Research Institute Co., Ltd. and ANSHIN DIAL Co., Ltd.

We will pursue group synergies by combining our comprehensive strengths to provide high-quality products and services that meet the needs of individual customers.

Net premiums written(*)

Ordinary profit / loss(∆)

Net income / loss(∆)

Net assets

Total assets

2,811,611

190,259

93,451

2,285,832

16,878,148

2,639,015

150,300

83,625

2,021,625

15,914,663

Fiscal 2012Fiscal 2013

(million yen)Outline of consolidated financial statements

(*) Key sales item of non-life insurance business, which is our core business within the Group.

Total¥2,811.6 bn

265 (Consolidated numberemployees: 37,055)

Tokyo Stock Exchange (First Section)Nagoya Stock Exchange (First Section)

www.ms-ad-hd.com/enURL

OverseasBusiness

DomesticLife Insurance

Business

Domestic Non-life Insurance Business

Financial Services Business

Risk-RelatedServicesBusiness

Number of Employees

Management of non-life and life insur-ance companies and companies qual i f ied to become subsidiar ies under Insurance Business Act.

Business Description

Stock Listing

MS&AD Insurance GroupMS&AD Insurance Group

Holdings, Inc.

1.

Any business associated with the above.

2.

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27-2, Shinkawa 2-chome, Chuo-ku, Tokyo, Japan

Contact detailsCorporate Social Responsibility Section, Corporate Planning Dept.TEL：+81-3-5117-0306 / FAX：+81-3-5117-0602Mail：aaa703_csr@ms-ad-hd.com

www.ms-ad-hd.com