Described here is the outline of questions and answers exchanged between institutional investors and security analysts and Sonosuke Usui, Director and Managing Executive Officer of T&D Holdings, Inc. at a telephone conference held on February 15, 2007. Some additions and corrections were made to make the contents easier for readers to understand.

Q.	What was the background for the forecast of new policy amount for fiscal 2006 to be revised downward? And what is a forecast for a next fiscal year?
A.	As a matter of marketing strategy, the target amount is set relatively higher. We see it significant that the new policy amount has increased compared with that for the same term of the previous year. We expect it to increase somewhat in the next term. In the case of Daido, we do not assume the new policy amount will change largely year on year.

Q.	Please tell us as much as possible about the implications for EV as of March 31, 2007.
A.	Current EV can be estimated approximately by adding expected return from EV as of the end of the previous fiscal year [March 31, 2006] and EV of new business expected from performance of that business, to adjusted book value disclosed quarterly, and then reflecting changes in the asset management environment since the end of March 2006 in sensitivity.

Q.	What effect do you think revision of the standard life table will have on Daido and Taiyo?
A.	The effect will be different depending on the insurance products, but Daido, which sells mostly death protection products, will probably be more adversely affected than Taiyo. The point is how the negative effects can be offset by product strategy for other than death protection products. Taiyo’s products are not limited to death protection products, but are diversified to include 3rd sector products, and we therefore do not think Taiyo will be strongly affected.

Q.	Tax treatment for long-term accident insurance changed in November 2006. What effect did that have on Daido, which sells AIU’s long-term accident insurance as a part of its SME package plan with life and accident insurance?
A.	Long-term type products are a relatively small sales portion of the package plan, and we do not think there will be much effect.

Q.	Daido has issued a release on the revision of premium rates. What will be an effect on the EV of new business?
A.	We do not think the effect will be favorable, but we will take various steps to prevent the EV of new business from decreasing as much as the decline of premium rates.

Q.	Is any trial calculation of EV after the revision available?
A.	Each related department is obviously going though various simulations, but they are not at a stage that we are able to release them.

Q.	At Daido, surrenders of long-term insurance with high-cash-value have substantially increased. Does this have an effect on EV? I personally see that surrenders are mostly of policies whose rate of return on cash value is at its peak – that is, policies with high assumed interest rates – and surrenders of such policies do not affect EV substantially. Am I correct?
A.	It has been more than ten years since long-term insurance with high-cash-value was launched. This was developed to respond to the needs of business succession, retirement benefits, etc., and surrenders have been expected. As part of improving our customer service, we began notifying all policyholders of future changes in cash value starting in this fiscal year, and surrenders, including of policies whose rate of return on cash value has already passed the peak, have been increasing. The assumed interest rates of most of the surrendered policies range from 2% to 3.75%. Most of the policies in force at Daido are term life insurance, and effect can be inferred, from disclosed sensitivity, not to differ largely. Assumptions of surrender and lapse, however, are based on each company’s experience over the three most recent fiscal years, and the results do not necessarily match directly. Also, surrenders of policies with high assumed interest rates would cause a decline of an interest loss, partially canceling out loss by surrenders.

Q.	It has been vigorously reported that major life insurance companies are fully engaged in TA/CPA distribution. What effect does this have on Daido’s actual sales activities?
A.	In the past, too, such companies have taken the aggressive with their high-level commission fees, but Daido has always rolled them back with its ability to provide support. At the moment, we have heard no actual effects or others, but we are aware of need for keeping watch.

Q.	What is the schedule for responding to the requirement for European Embedded Value, namely EEV?
A.	T&D Holdings and Actuarial Accounting Department of each subsidiary are mostly considering the matter, and EV will be disclosed in the current manner at the end of March 2007. We are preparing to disclose EEV as of March 2007 by the time when financial results for the six month ended September 2007 are to be released.

Q.	I have heard that some factors for the interest and dividend income increase are temporary. What are they in breakdown? Also, you have announced a dividend increase for the fiscal year 2006 [ending in March 2007]. Is there a possibility that dividends will decrease if interest and dividend income decline and income levels decrease in the next term? Or do you make a consistent dividend payment as a base?
A.	Interest and dividend income increased 24.3 billion yen from the same period of the previous year, and about half of that was temporary. Based on the dividend policy linked to business performance while maintaining financial soundness of each subsidiary, and taking medium- and long-term (about three years) dividend levels into consideration, we will decide the final dividend amount.