MS& Insurance: Earnings Report (Under IFRS) 2026.6.29

This document has been translated from the Japanese original solely for reference purposes, and the Japanese original shall prevail if any discrepancy is identified.

SUMMARY OF FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2026

(Under IFRS)

June 29, 2026

Named of Listed Company: MS&AD Insurance Group Holdings, Inc. Stock Exchange Listing: Tokyo Stock Exchange and Nagoya Stock Exchange Securities Code Number: 8725

URL: https://www.ms-ad-hd.com

Representative: Shinichiro Funabiki, President & CEO

Contact: Corporate Communications Dept. https://www.ms-ad-hd.com/en/ir/contact.html

(Note) Amounts of less than one million yen are truncated.

1. Consolidated Financial Highlights for the Year Ended March 31, 2026 (April 1, 2025 to March 31, 2026)

   1. Consolidated business performance (Yen in millions)

      	Insurance revenue		Income before tax		Net income		Net income attributable to owners of the parent		Comprehensive income
      Year ended March 31, 2026	6,436,026	8.2 %	703,521	53.4 %	516,131	68.8 %	510,612	70.1 %	1,493,364	- %
      Year ended March 31, 2025	5,949,509	- %	458,500	- %	305,791	- %	300,191	- %	(50,371)	- %

      Percent figures represent changes from the corresponding period of the preceding year.

      (Yen)

      	Basic earnings per share	Diluted earnings per share	Return on equity attributable to owners of the parent	Ratio of income before tax to total assets
      Year ended March 31, 2026	342.98	342.94	8.7 %	2.5 %
      Year ended March 31, 2025	193.36	193.33	5.3 %	1.7 %

      (Reference) Gains (losses) on equity method investments For the year ended March 31, 2026: ¥

      36,426

      million

      For the year ended March 31, 2025: ¥ 30,276 million

   2. Consolidated financial conditions (Yen in millions)

      	Total assets	Total equity	Equity attributable to owners of the parent	Ratio of equity attributable to owners of the parent to total assets	Equity attributable to owners of the parent per share (Yen)
      March 31, 2026	29,592,153	6,481,239	6,419,831	21.7 %	4,424.60
      March 31, 2025	26,821,452	5,434,114	5,381,586	20.1 %	3,560.97

   3. Consolidated cash flows (Yen in millions)

   	Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Ending balance of cash and cash equivalents
   Year ended March 31, 2026	954,001	(719,514)	(138,762)	2,513,765
   Year ended March 31, 2025	707,427	(555,927)	(680,424)	2,341,388

2. Dividends

   	Dividends per share (Yen)					Total annual dividends (Yen in millions)	Dividend pay-out ratio (Consolidated)	Ratio of dividends to equity attributable to owners of the parent (Consolidated)
   	1st quarter	2nd quarter	3rd quarter	4th quarter	Annual Total
   Year ended March 31, 2025	-	72.50	-	72.50	145.00	221,331	75.0 %	3.9 %
   Year ended March 31, 2026	-	77.50	-	82.50	160.00	235,617	46.6 %	4.0 %
   Year ending March 31, 2027 (Forecast)	-	85.00	-	85.00	170.00		58.0 %

   (Note) The 2nd quarter and the 4th quarter dividends per share for the year ended March 31, 2025 consist of ¥50.00 ordinary dividend and ¥22.50 special dividend. The 2nd quarter dividends per share for the year ended March 31, 2026 consists of ¥60.00 ordinary dividend and ¥17.50 special dividend and the 4th quarter dividends per share for the year ended March 31, 2026 consists of ¥65.00 ordinary dividend and ¥17.50 special dividend. The 2nd quarter and the 4th quarter dividends per share

   for the year ending March 31, 2027 (Forecast) consist of ¥70.00 ordinary dividend and ¥15.00 special dividend.

3. Consolidated Earnings Forecasts for the Year Ending March 31, 2027 (April 1, 2026 to March 31, 2027)

(Yen in millions)

Percent figure represents changes from the preceding year.

* Notes

1. Significant changes in the scope of consolidation during the period : Yes Newly included: 1 (MSIG Specialty Insurance America, Inc.) Excluded: 1 (MSIG Insurance Europe AG)

2. Changes in accounting policies and changes in accounting estimates

   1. Changes in accounting policies required by IFRS: None

   2. Changes in accounting policies other than above: None

   3. Changes in accounting estimates: None

3. Number of shares of issued stock (common stock)

1. Number of shares of issued stock (including treasury stock)

   As of March 31, 2026: 1,492,551,732 shares

   As of March 31, 2025: 1,608,398,708 shares

2. Number of shares of treasury stock

   As of March 31, 2026: 41,612,213 shares

   As of March 31, 2025: 97,131,980 shares

3. Average number of shares of outstanding stock

For the year ended March 31, 2026: 1,488,714,590 shares

For the year ended March 31, 2025: 1,552,438,540 shares

• This report is unaudited.

• Notes to the earnings forecasts and others

  1. For the purpose of enhancing the international comparability of financial information disclosed in the capital markets, MS&AD Insurance Group Holdings, Inc. ("the Company") voluntarily adopts International Financial Reporting Standards (IFRS), instead of Japanese GAAP, for its consolidated financial statements, beginning with the Annual Securities Report for the fiscal year ended March 31, 2026.

  2. This summary of consolidated financial results and the appendix disclose the principal items required to be disclosed in the Annual Securities Report.

  3. The Company has announced its summary of consolidated financial results for the year ended March 31, 2026 (under Japanese GAAP) on May 20, 2026.

  4. Any earnings forecasts in this report have been made based on the information available to the Company as of the disclosure date of the report and certain assumptions, and therefore do not guarantee future performance. Actual results may differ substantially from these forecasts depending on various factors. For key assumptions of the earnings forecasts and other relevant information, please refer to "Consolidated Earnings Forecast for the Year Ending March 31, 2027" on page 3 of the Appendix.

[Appendix]

Contents

Page

1. Overview of Business Performance and Forecasts

   1. Overview of Business Performance in the Fiscal Year under Review ・・・・・・・・・・・・・・・・・ ・・ 2

   2. Overview of Financial Conditions in the Fiscal Year under Review ・・・・・・・・・・・・・・・・・ ・・・ 3

   3. Consolidated Earnings Forecast for the Year Ending March 31, 2027 ・・・・・・・・・・・・・・・・ ・・ 3

2. Basic Stance for Adopting Accounting Standards ・・・・・・・・・・・・・・・・・・・・・・・・・ ・・・・・・・・・・ 4
3. Consolidated Financial Statements and Main Notes

   1. Consolidated Statements of Financial Position ・・・・・・・・・・・・・・・・・・・・・・・・・・ ・・・・・・・・・・ 5

   2. Consolidated Statements of Income and Comprehensive Income ・・・・・・・・・・・・・・・・・・ ・・・・ 6

   3. Consolidated Statements of Changes in Equity ・・・・・・・・・・・・・・・・・・・・・・・・・・ ・・・・・・・・・・ 8

   4. Consolidated Statements of Cash Flows ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ ・・・・・・・・・・・・ 10

   5. Notes to Consolidated Financial Statements

(Note on Going Concern) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ ・・・・・・・・・・・・・・・・・・ 12

(Notes on Segment Information) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ ・・・・・・・・・・・・・・・ 12

(Notes on Per Share Information) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ ・・・・・・・・・・・・・・・ 17

(Note on Significant Subsequent Events) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・ ・・・・・・・・・・・・ 18

(Transition to IFRS) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ ・・・・・・・・・・・・・・・・・・・ 19

Explanatory Material for Business Results for the Year Ended March 31, 2026

1. Overview of Business Performance and Forecasts

   1. Overview of Business Performance in the Fiscal Year under Review

      Financial and Economic Environment Surrounding the Group

      During the reporting fiscal year, the global economy experienced a moderate recovery in many regions, particularly in the United States and Europe, as personal consumption increased in response to changes in price trends. However, heightened geopolitical risks, including those related to the Middle East, and the impact of U.S. policy developments led to ongoing uncertainty regarding the future outlook.

      In the Japanese economy, the employment and income environment showed improvement, and despite rising prices, a pickup in consumer spending and capital expenditures was observed. Interest rates were raised in a phased manner. While some areas of weakness remained, the overall economy continued its gradual recovery trend.

      In the insurance industry, while a contracting domestic market is anticipated due to the declining birthrate and aging population, the emergence of new risks-such as climate change, the rapid adoption of AI, and the rise in cyber risks-has required the industry to respond to dramatic changes in the business environment. As a result, there is an increasing need for transformation beyond the traditional framework of insurance business practices.

      Key Initiatives and Objectives for the Reporting Fiscal Year

      <"Customer-Oriented Business Operations," "Thorough Compliance," and "Strengthening Governance "for the Enhancement of Corporate Value>

      In light of the issues related to premium adjustment practices in the field of corporate insurance and the leaking of information between insurance companies at Mitsui Sumitomo Insurance Co., Ltd. ("MSI ") and Aioi Nissay Dowa Insurance Co., Ltd. ("ADI"), the Group has continued to implement measures to prevent recurrence of such incidents. At the same time, it has promoted a review of its business practices and undertook the transformation of its business model, taking into account changes in competition rules due to amendments to the Insurance Business Act and other relevant regulations.

      In addition, following approval at the Ordinary General Meeting of Shareholders in June 2025, the Company transitioned to a company with an Audit and Supervisory Committee, thereby strengthening the supervisory function of the Board of Directors and expediting decision-making and business execution. Furthermore, by having a majority of the Board comprised of outside directors, the objectivity of management decisions by the Board of Directors has been enhanced.

      As a holding company, the Company will continue to take the lead in promoting initiatives across the entire Group.

      <"Reorganization of the Domestic Non-Life Insurance Business Structure" to Establish an Advantage in the New Competitive Environment>

      MSI and ADI reached a final agreement to merge, with the effective date set for April 1, 2027, and entered into a merger contract. In aiming to become "the insurance and financial group most chosen by customers," the Group will, through this merger, create a new non-life insurance company that enhances the foundation for growth and strengthens governance, thereby improving reliability. Entrusted with the customers' important futures, and amid increasing uncertainty, the Group is committed to becoming an entity that anticipates change and solves social risks- "taking on risk, leading the world." Through these efforts, the Group aims to achieve sustainable growth and enhance corporate value.

      Furthermore, aiming to promote further development of the insurance industry by fostering a sound competitive environment, MSI has agreed with GINSEN CO., LTD., an insurance agency of the SMBC Group, and Sumitomo Mitsui Financial Group, Inc. to jointly establish an insurance agency business company through joint investment, effective April 1, 2026.

      <"Enhancing the Management Structure of Overseas Business" for Sustainable Profit Generation>

      Through the investment in W.R. Berkley Corporation, a leading specialty insurance company in the United States by MSI, the Company has promoted diversification of earnings and pursued collaborative initiatives that leverage advanced underwriting*1 capabilities. To expedite decision-making, it centralized the management of its overseas business division within the organization and decided to establish the International Executive Committee (IEC), a forum where multinational personnel engage in discussions on overseas business strategies and critical issues. These efforts are intended to further enhance the Group's resource allocation capabilities and foster future growth.

      *1 Underwriting

      Assessing whether to accept an insurance application and determining the terms and conditions of coverage.

      <"A New Business Portfolio" for Further Growth>

      With the aim of further improving capital efficiency, the Company sold its shares in Challenger Limited, an Australian financial group. In addition, by investing in Barings LLC, an asset management company that was a wholly owned subsidiary of the major U.S. life insurer Massachusetts Mutual Life Insurance Company, the Company has promoted initiatives to diversify its business portfolio, enhance capital efficiency, and strengthen its insurance product development capabilities, thereby aiming to further increase the corporate value of the Group

      As a result of these efforts, the consolidated financial results for the current fiscal year are as follows.

      Insurance service result amounted to ¥ 525.4 billion, comprising insurance revenue of ¥ 6,436.0 billion, insurance service expenses of ¥ 5,422.7 billion, and reinsurance result of (¥ 487.8 billion). Financial result amounted to ¥ 261.0 billion, comprising investment result of ¥ 931.9 billion and Insurance finance gains (losses) of (¥ 670.8 billion).

      After adding and subtracting other income and expenses and share of profit (loss) of investments accounted for using the equity method, profit before tax amounted to ¥ 703.5 billion. After adding and subtracting income tax expense of ¥ 187.3 billion, profit for the year attributable to owners of the parent increased by ¥ 210.4 billion from the previous consolidated fiscal year to ¥ 510.6 billion.

      The results by segment were as follows:

      Note that insurance revenue, insurance service expenses, reinsurance results, and insurance service result for the domestic non-life insurance business do not include earthquake insurance for households or compulsory automobile liability insurance.

      1. Domestic Non-life Insurance Business (Mitsui Sumitomo Insurance Company, Limited)

         Insurance service result amounted to ¥ 124.9 billion, comprising insurance revenue of ¥ 1,934.7 billion, insurance service expenses of ¥ 1,632.3 billion, and reinsurance result of (¥ 177.4 billion). Financial result amounted to ¥ 146.3 billion, comprising investment result of ¥ 179.5 billion and Insurance finance gains (losses) of (¥ 33.1 billion).

         After adding and subtracting other income and expenses, profit before tax amounted to ¥ 233.9 billion. After adding and subtracting income tax expense of ¥ 50.9 billion, profit for the year attributable to owners of the parent increased by ¥ 74.3 billion from the previous consolidated fiscal year to ¥ 182.9 billion.

      2. Domestic Non-life Insurance Business (Aioi Nissay Dowa Insurance Company, Limited)

         Insurance service result amounted to ¥ 90.1 billion, comprising insurance revenue of ¥ 1,445.1 billion, insurance service expenses of ¥ 1,264.2 billion, and reinsurance result of (¥ 90.8 billion). Financial result amounted to ¥ 89.8 billion, comprising investment result of ¥ 118.9 billion and Insurance finance gains (losses) of (¥ 29.0 billion). After adding and subtracting other income and expenses, profit before tax amounted to ¥ 154.1 billion.

         After adding and subtracting income tax expense of ¥ 35.1 billion, profit for the year attributable to owners of the parent increased by ¥ 51.3 billion from the previous consolidated fiscal year to ¥ 118.9 billion.

      3. Domestic Non-life Insurance Business (Mitsui Direct General Insurance Co., Ltd.)

         Insurance service result amounted to (¥ 3.1 billion), comprising insurance revenue of ¥ 40.2 billion, and insurance service expenses of ¥ 43.2 billion. Financial result amounted to ¥ 0.3 billion. After adding and subtracting other income and expenses, loss before tax amounted to ¥ 2.9 billion.

         After adding and subtracting income tax expense of (¥ 0.7 billion), loss for the year attributable to owners of the parent decreased by ¥ 0.7 billion from the previous consolidated fiscal year to ¥ 2.2 billion.

      4. Domestic Life Insurance Business (Mitsui Sumitomo Aioi Life Insurance Company, Limited)

         Insurance service result amounted to ¥ 85.5 billion, comprising insurance revenue of ¥ 256.2 billion, insurance service expenses of ¥ 170.3 billion, and reinsurance result of (¥ 0.3 billion). Financial result amounted to (¥ 166.9 billion), comprising investment result of (¥ 88.1 billion) and Insurance finance gains (losses) of (¥ 78.7 billion). After adding and subtracting other income and expenses, loss before tax amounted to ¥ 83.8 billion.

         After adding and subtracting income tax expense of (¥ 23.5 billion), loss for the year attributable to owners of the parent decreased by ¥ 82.5 billion from the previous consolidated fiscal year to ¥ 60.2 billion.

      5. Domestic Life Insurance Business (Mitsui Sumitomo Primary Life Insurance Company, Limited)

         Insurance service result amounted to ¥ 28.8 billion, comprising insurance revenue of ¥ 106.7 billion, insurance service expenses of ¥ 90.3 billion, and reinsurance result of ¥ 12.4 billion. Financial result amounted to ¥ 152.1 billion, comprising investment result of ¥ 653.6 billion and Insurance finance gains (losses) of (¥ 501.4 billion).

         After adding and subtracting other income and expenses, profit before tax amounted to ¥ 179.2 billion. After adding and subtracting income tax expense of ¥ 51.9 billion, profit for the year attributable to owners of the parent increased by ¥ 76.3 billion from the previous consolidated fiscal year to ¥ 127.3 billion.

      6. International Business (Overseas insurance subsidiaries and associates)

         Insurance service result amounted to ¥197.6 billion, comprising insurance revenue of ¥2,507.6 billion, insurance service expenses of ¥2,010.7 billion, and reinsurance result of (¥299.2 billion). Financial result amounted to ¥72.8 billion, comprising investment result of ¥119.1 billion and Insurance finance gains (losses) of (¥46.3 billion).

         After adding and subtracting other income and expenses, profit before tax amounted to ¥297.6 billion. After adding and subtracting income tax expense of ¥57.7 billion, profit for the year attributable to owners of the parent increased by ¥57.0 billion from the previous consolidated fiscal year to ¥234.4 billion.

   2. Overview of Financial Conditions in the Fiscal Year under Review

      Total assets as of the end of the current consolidated fiscal year totaled ¥29,592.1 billion, a year-on-year increase of ¥2,770.7 billion. Total equity increased by ¥1,047.1 billion year-on-year to ¥6,481.2 billion.

      For the fiscal year under review, net cash provided by operating activities increased by ¥ 246.5 billion year on year to ¥ 954.0 billion, mainly due to an increase in premium income. Net cash used in investing activities decreased by ¥ 163.5 billion year on year to (¥ 719.5 billion), mainly due to an increase in payments for the acquisition of investment securities, despite an increase in proceeds from the sale and redemption of investment securities. Net cash used in financing activities increased by ¥ 541.6 billion year on year to (¥ 138.7 billion), mainly due to an increase in proceeds from the issuance of corporate bonds. As a result, cash and cash equivalents at the end of the fiscal year increased by ¥ 172.3 billion from the end of the previous fiscal year to ¥ 2,513.7 billion.

      For long-term investment funding, including growth investments, the Group primarily utilizes funds generated from operating and investing activities and internal reserves, while also securing external financing through the issuance of corporate bonds and long-term borrowings from financial institutions.

      In addition, with respect to liquidity, in preparation for potential deterioration in funding conditions caused by insurance claim payments and market disruption in the event of a major natural disaster, the Group maintains sufficient liquid assets and appropriately manages its cash position by assessing liquidity from both asset and liability perspectives, based on trends in cash inflows and outflows.

   3. Consolidated Earnings Forecast for the Year Ending March 31, 2027

   Based on the following assumptions, the Group forecasts net income attributable to owners of the parent of ¥425.0 billion for the fiscal year ending March 31, 2027.

   ・Insurance income forecast is based on the Company's own forecast, taking into account past trends in results.

   ・Incurred losses related to new domestic natural catastrophes are expected to be ¥83.0 billion for Mitsui Sumitomo Insurance Co., Ltd. and ¥67.0 billion for Aioi Nissay Dowa Insurance Co., Ltd.

   ・No significant fluctuations in market interest rates, exchange rates, or stock market prices will take place from the end of March 2026.

   The Company's consolidated earnings forecast is based on certain assumptions including the above; however, actual results may differ materially due to various factors. Please note that as the Company voluntarily adopts International Financial Reporting Standards

   (IFRS) starting from the Annual Securities Report for the fiscal year ended March 31, 2026, the above forecast was prepared in accordance with IFRS.

2. Basic Stance for Adopting Accounting Standards

   In order to enhance international comparability of financial information in capital markets, the Group voluntarily adopts International Financial Reporting Standards (IFRS) in replacement of the current Japanese GAAP, to the consolidated financial statements, starting from the Annual Securities Report for the fiscal year ended March 31, 2026.

3. Consolidated Financial Statements and Main Notes

1. Consolidated Statements of Financial Position

   April 1, 2024 (Transition date)

   (Yen in millions)

   March 31, 2025 March 31, 2026

   Assets

   Cash and cash equivalents	2,851,692	2,341,388	2,513,765
   Derivative assets	118,434	107,536	126,967
   Investment securities	19,703,999	18,865,208	20,132,834
   Loans	1,262,244	1,234,469	1,121,591
   Other financial investments	229,769	220,795	244,051
   Investment property	59,428	59,942	62,866
   Reinsurance contract assets	1,741,358	1,952,246	2,435,453
   Insurance contract assets	4,340	9,612	17,483
   Investments accounted for using the equity method	245,322	224,978	917,477
   Property and equipment	340,313	341,070	375,137
   Intangible assets	437,119	337,455	333,980
   Retirement benefit assets	2,542	12,901	1,326
   Current tax assets	46,084	11,274	42,532
   Deferred tax assets	52,696	32,511	29,698
   Other assets	980,796	1,023,435	1,216,253
   Assets held for sale	567	46,626	20,732
   Total assets	28,076,714	26,821,452	29,592,153
   Liabilities
   Repurchase agreements and similar securities lendings	778,601	546,612	481,620
   Derivative liabilities	154,961	93,281	156,680
   Investment contract liabilities	857,916	802,669	789,755
   Insurance contract liabilities	17,821,012	17,735,421	18,604,850
   Reinsurance contract liabilities	2,325	2,854	3,760
   Bonds issued and borrowings	749,938	623,738	1,039,038
   Retirement benefit liabilities	139,667	131,037	120,038
   Current tax liabilities	74,528	106,865	163,075
   Deferred tax liabilities	881,176	631,607	873,246
   Provisions	8,032	8,845	16,171
   Other liabilities	679,450	704,404	848,065
   Liabilities directly associated with assets held for sale	-	-	14,609
   Total liabilities	22,147,611	21,387,337	23,110,913
   Equity
   Share capital	101,076	101,367	101,367
   Capital surplus	347,813	346,843	205,351
   Retained earnings	3,941,735	4,443,871	4,928,301
   Treasury stock	(36,841)	(285,533)	(150,623)
   Other equity components	1,524,669	775,037	1,335,434
   Total equity attributable to owners of the parent	5,878,451	5,381,586	6,419,831
   Non-controlling interests	50,651	52,528	61,407
   Total equity	5,929,103	5,434,114	6,481,239
   Total liabilities and equity	28,076,714	26,821,452	29,592,153

2. Consolidated Statements of Income and Comprehensive Income

Net income

(Yen in millions)

Year ended Year ended

March 31, 2025 March 31, 2026

305,791 516,131

Other comprehensive income:

Items that will not be reclassified to profit or loss:

(3) Consolidated Statements of Changes in Equity

Year ended March 31, 2025 (April 1, 2024 to March 31, 2025)

(Yen in millions)

Year ended March 31, 2026 (April 1, 2025 to March 31, 2026)

(Yen in millions)

Cash flows from investing activities:

(Yen in millions)

Year ended Year ended

March 31, 2025 March 31, 2026

Net increase (decrease) in cash and cash equivalents due to transfer to assets held for sale

- (7,061)

Ending balance of cash and cash equivalents 2,341,388 2,513,765

1. Notes to Consolidated Financial Statements

   (Note on Going Concern) Not applicable.

   (Notes on Segment Information)

   The reportable segments are the units of MS&AD group ("the Group") for which separate financial information is available and that are evaluated regularly by the board of directors in deciding allocation of resources and assessing their performance.

   The Group's business domains comprise domestic non-life insurance business, domestic life insurance business, international business, financial services business and digital/risk-related services business. Mitsui Sumitomo Insurance Co., Ltd. ("MSI"), Aioi Nissay Dowa Insurance Co., Ltd. ("ADI") and Mitsui Direct General Insurance Co., Ltd. ("Mitsui Direct General") primarily operate domestic non-life insurance business, asset management, and related businesses. Mitsui Sumitomo Aioi Life Insurance Co., Ltd. ("MSI Aioi Life") and Mitsui Sumitomo Primary Life Insurance Co., Ltd. ("MSI Primary Life") primarily operate domestic life insurance business and asset management. The Company and domestic non-life insurance subsidiaries engage in international business, and overseas subsidiaries also develop insurance business and asset management in various foreign countries. Financial services business operates asset management, venture capital, and other businesses. Digital/risk-related services business operates risk management and related businesses. Segment information is presented based on the Group's business domains where the domestic non-life and life insurance businesses are further identified by each insurance company, resulting in six reportable segments that comprise the five domestic insurance companies and the international business (overseas subsidiaries and affiliates).

   The accounting policies for the reportable segments are substantially the same as those applied in preparing the consolidated financial statements. Net income by segment is the amount based on net income of each company (after taking ownership interests into consideration).

   Intersegment revenues or transfers are calculated based on third-party transaction prices.

   For the year ended March 31, 2025 (from April 1, 2024 to March 31, 2025)

   (Yen in millions)

   	Domestic non-life insurance business			Domestic life insurance business
   	MSI	ADI	Mitsui Direct General	MSI Aioi Life	MSI Primary Life
   Revenues: (Note 1)
   Revenues from external cusutomers	1,800,017	1,329,133	35,924	252,543	108,018
   Intersegment revenues or transfers	47,868	59,477	-	-	-
   Total	1,847,886	1,388,611	35,924	252,543	108,018
   Net income (loss) by segment (Note 5)	108,601	67,632	(1,479)	22,280	50,996
   Other items:
   Interest income	29,000	37,856	219	65,850	90,269
   Other finance expenses	6,039	564	1	1,150	130
   Depreciation and amortization	40,842	25,931	2,135	11,264	5,231
   Investment gains (losses) on the equity method	-	-	-	-	-
   Impairment losses	15	1	208	-	-
   Income tax expenses	28,908	22,695	(488)	19,367	22,814

   (Yen in millions)

   	International business	Others (Note 2)	Total	Adjustments (Notes 3 and 4)	Amounts on the consolidated financial statements
   	Overseas subsidiaries and affiliates
   Revenues: (Note 1)
   Revenues from external cusutomers	2,124,151	19,725	5,669,514	279,994	5,949,509
   Intersegment revenues or transfers	2,829	1,414	111,590	(111,590)	-
   Total	2,126,981	21,139	5,781,104	168,404	5,949,509
   Net income (loss) by segment (Note 5)	177,397	13,608	439,037	(138,846)	300,191
   Other items: Interest income	68,732	0	291,929	(3,117)	288,811
   Other finance expenses	4,320	7	12,216	586	12,802
   Depreciation and amortization	14,382	125	99,913	5,894	105,808
   Investment gains (losses) on the equity method	28,941	3,095	32,036	(1,760)	30,276
   Impairment losses	637	68	931	87,595	88,527
   Income tax expenses	44,473	4,732	142,503	10,206	152,709

   (Notes)

   1. "Revenue" represents insurance revenue for the insurance business, other income for the other businesses, and the amount of insurance revenue for "Amounts on the consolidated financial statements."

   2. "Others", which is business segments not included in reportable segments and other revenue generating business activities, represents domestic non-life insurance business operated by domestic insurance companies other than reportable segment, financial services business and digital/risk-related services business operated by group companies other than domestic insurance companies, and business investments by the Company into companies other than group companies.

   3. "Adjustments" in "Revenues from external customers" represents primarily to residential earthquake insurance and CALI.

   4. "Adjustments" in "Net income (loss) by segment" includes the elimination of intersegment transactions of ¥(49,100) million, companywide expenses not allocated to the reportable segments of ¥(15,683) million, adjustments to impairment losses on equities of overseas subsidiaries recognized by MSI of ¥30,574 million, impairment losses of ¥(87,595) million, and the adjustments to profit and loss due to application of the purchase method to a domestic insurance subsidiary and amortization of intangible assets of ¥ (17,041) million. Companywide expenses mainly comprise costs related to the Company's administrative departments that are not attributable to the reportable segments.

   5. "Net income (loss) by segment" represents "Total net income attributable to owners of the parent."

For the year ended March 31, 2026 (from April 1, 2025 to March 31, 2026)

(Yen in millions)

(Yen in millions)

(Notes)

1. "Revenue" represents insurance revenue for the insurance business, other income for the other businesses, and the amount of insurance revenue for "Amounts on the consolidated financial statements."

2. "Others", which is business segments not included in reportable segments and other revenue generating business activities, represents domestic non-life insurance business operated by domestic insurance companies other than reportable segment, financial services business and digital/risk-related services business operated by group companies other than domestic insurance companies, and business investments by the Company into companies other than group companies.

3. "Adjustments" in "Revenues from external customers" represents primarily to residential earthquake insurance and CALI.

4. "Adjustments" in "Net income (loss) by segment" includes the elimination of intersegment transactions of ¥(72,403) million, companywide expenses not allocated to the reportable segments of ¥(20,587) million, adjustments to impairment losses on equities of overseas subsidiaries recognized by MSI of ¥4,681 million, and the adjustments to profit and loss due to application of the purchase method to a domestic insurance subsidiary and amortization of intangible assets of ¥(17,577) million. Companywide expenses mainly comprise costs related to the Company's administrative departments that are not attributable to the reportable segments.

5. "Net income (loss) by segment" represents "Total net income attributable to owners of the parent."

(Notes on Per Share Information)

The bases for the calculation of "Basic earnings per share" and "Diluted earnings per share" are as follows.

Note: The Company's shares held by the trusts established under the share compensation plan are

included in treasury stock as a deduction in the calculation of "Average number of common shares of outstanding" for the purposes of calculating "Basic earnings per share" and "Diluted earnings per share."

The average number of such treasury shares deducted was 4,114 thousand and 3,451 thousand for the year ended March 31, 2025 and 2026, respectively.

(Note on Significant Subsequent Events)

(Issuance of unsecured domestic corporate bonds)

The Company and Mitsui Sumitomo Insurance Co., Ltd., a subsidiary of the Company, have adopted a comprehensive resolution regarding the issuance of domestic unsecured straight bonds.

MS&AD Insurance Group Holdings,Inc.