First of all, I would like to express my deepest condolences for all those affected by the Pacific Coast of Tohoku Earthquake. I extend my best wishes for a quick recovery in the region and the welfare of everyone affected. The T&D Life Group is united in its determination to provide the utmost support to affected customers.

In the fiscal year ended March 31, 2011, the Japanese economy saw weaker consumer spending against the backdrop of a further fall in product prices and a harsh employment and wage environment. On the other hand, recovering capital expenditures in tandem with improving corporate earnings and other developments offered some hope for the economy. However, the earthquake that devastated Tohoku on March 11 has also dealt a severe blow to the Japanese economy. Along with the rapid appreciation of the yen and other consequences of the disaster, this is expected to impact the economy’s recovery to some extent going forward.

Meanwhile, in the life insurance industry, the decline in policy amount in force continued due to lackluster growth in new policies. At the same time, the asset management environment remains severe. Despite recovering somewhat after the financial crisis, share prices still lack the strength to push higher. And interest rates remain at low levels.

In this context, the T&D Life Group has worked to maintain and increase confidence in the Group’s core life insurance business, and to expand earnings by strengthening the unique business models of its three life insurance companies: Taiyo Life Insurance Company, Daido Life Insurance Company, and T&D Financial Life Insurance Company.

In an industry first, Taiyo Life in September 2011 will adopt a mobile communications-based system for immediately processing insurance contracts. This will see Taiyo Life equip sales representatives with advanced mobile terminals and revamp underwriting assessment systems. The introduction of a paperless contract application system is an innovative approach that should enable Taiyo Life to handle insurance applications faster than any other company in the industry.

For its part, Daido Life launched J-type non-participating insurance that provides coverage for serious diseases in October 2010. This insurance policy pays out up to ¥100 million if an owner of a small or medium-sized enterprise (SME) is afflicted by a particular condition (cancer, acute myocardial infarction, or cerebral stroke). This new product is designed to facilitate continuity of an SME’s business by ensuring working capital.

Meanwhile, T&D Financial Life in April 2010 began selling a whole life insurance product that adds a bonus policy amount every year over the life of the insured. This company will continue to develop products that meet customers’ diverse needs.

Our corporate philosophy states: “With our “Try & Discover” motto for creating value, we aim to be a group that contributes to all people and societies.” Guided by this principle, management and employees will work cohesively, aiming to raise the Group’s corporate value and earn the confidence of customers.

Thank you for your continued support and cooperation.