Below is an edited summary of the Q&A session with institutional investors and securities analysts at the Information Meeting for Investors: Financial Results for the Year Ended March 31, 2007 on May 24, 2007. Answers to questions were provided by Naoteru Miyato, President and Representative Director of T&D Holdings, Inc.. The contents are partially modified for easy understanding of readers.

Q.	It has been reported that Nippon Life and Sumitomo Life will set aside additional policy reserves to eliminate the negative spread. What measures is T&D considering?
A.	We believe the way to deal with the negative spread is to increase core profit by obtaining mortality gains. Daido and Taiyo both try to shore up mortality gains and increase profitability in their routine business activities; Daido focuses on protection products, and Taiyo is shifting from saving products to protection products. As a result, we don’t think negative spreads will continue as a major managerial problem in the process of increasing profitability.

Q.	As the traditional EV standard shifts to EEV, what will be the effect?
A.	Two years ago we began studying the shift to EEV, and fully contemplated it last year. We expect to disclose EEV for reference as of March 2007 by the time of the interim financial report for this fiscal year. Major differences between the traditional EV and EEV (MCEV) include that the discount rate and investment yield are calculated at risk-free rates and that option costs are calculated in more detail. In EEV, the value of the life insurance business is reflected more directly. The effect of the change will be different among the three insurance companies, depending on the stability of their future profits, the level of negative spread, etc. Thus, we cannot give an overall impact until we actually do the calculations.

Q.	T&D Financial’s EV of new business remains negative. What are the prospects for it moving into the black?
A.	Competition for OTC sales at banks is becoming fierce. We must endeavor to constantly offer attractive products, including products with low insurance-related costs. We plan to increase the number of agents from the current 60, to 70 by the end of this fiscal year, and will carefully select agents where an OTC sales system is in good order. A support system for agents is also important. We expect EV of new business to be in the black in two more years, when policies in force will be about one trillion yen or a little more.

Q.	You talked about increasing shareholders dividend. If there are signs that the rate of EV growth will slow down, would you consider stock buyback?
A.	We think investors attach a great deal of importance to the level of dividends and future growth. T&D’s policy is to distribute dividends to shareholders based on the results after ensuring the soundness of the company. The target level is about 30% of adjusted net income, total of the net income and internal reserves exceeding legal requirements, on a medium and long term basis. If the rate of EV growth slows significantly, we would consider other measures, including buyback.

Q.	As for asset management, to what extent do you think interest rates will go up? How will higher rates affect liabilities? If interest rates rise, how do you expect policyholders to react?
A.	In terms of a projection, we think interest rates will remain unchanged for a while, and will likely rise slightly in the second half of this fiscal year. The effect of a rise in the interest rate will be different for individual insurance and for group annuities. For example, we don’t think surrenders of Daido’s individual term life insurance will substantially increase because the interest rates rise. On the other hand, group annuities will react more to such changes. This can, however, be handled even if surrenders increase because we are always attentive to asset liquidity. It is difficult to predict what policyholders will do when interest rates rise. For example, an increase in surrenders will affect option costs in EEV. We want to explain this along with differences from the calculation of traditional EV when EEV is disclosed.

Q.	When will the unpaid insurance claims be resolved, and be completely put to rest?
A.	Three life insurance companies are devoting their efforts to completing additional investigations by the end of June. We are also encouraging policyholders to claim payments.