Described here is the outline of questions and answers exchanged between institutional investors and security analysts and Naoteru Miyato, President of T&D Holdings, Inc. at the Information Meeting held on November 28, 2008. Some additions and corrections were made to make the contents easier for readers to understand.

Q.	What are the long-term prospects of Daido Life’s in-house sales representative channel?
A.	Daido Life’s in-house sales representative channel generates about 50% of new policy amount. While the tax accountant agency channel, another key channel, is expanding steadily, the number of sales representatives has continued to decline. Our current target is to maintain 4,500 sales representatives, and we are working to reduce the number of resignations by enhancing our training system and improving each sales representative’s consulting abilities, in order to help them working on a longer term. The retention rate is showing signs of improvement, and we intend to increase the number of sales representatives with 3 years or more of experience to about 3,000.

Q.	T&D Financial Life’s provision for reserves for minimum guarantee risks relating to individual variable annuities amounted to ¥12.1 billion due to deteriorating investment performance as of the end of September 2008, but is there additional provision caused by the further market decline since October 2008?
A.	Although inverted yields curve made funds performance for short-term domestic and foreign bonds negative as of the end of 2Q2008, funds performance returned to positive in October; therefore net minimum guarantee loss is not in an expansion trend.

Q.	You mentioned that Taiyo Life’s new product, “Taiyo Life’s Hoken Kumikyoku Best” is now on sale, and as a result, the total new policy amounts in October 2008 almost doubled from the same period of a year ago. However when you released the former main product, “Taiyo Life’s Hoken Kumikyoku”, the new policy amount increased substantially, but surrenders increased later. Are there any measures in place to prevent an increase in the surrenders of “Taiyo Life’s Hoken Kumikyoku Best”?
A.	Taiyo Life has been working on “improvement of sales quality” based on the lessons learned from the past increase in the surrenders. We have introduced a new sales support system (“T-SMAP”) since April 2008, and consulting sales using a data base have now become possible. Our new product, “Taiyo Life’s Hoken Kumikyoku Best” provides all forms of insurance protection, including medical and nursing care, in a master contract, in order to respond flexibly to changes in customer needs in accordance with different life stages. However, now is too soon after product introduction to talk about a firm trend before we first watch how it develops for a little while.

Q.	You mentioned that Daido Life continues to increase private equities. Is that plan on a commitment or fair value basis?
A.	As of September 30, 2008, Daido Life had an alternative investment balance of ¥340.6 billion, and ¥166.2 billion of that is private equity. We plan to increase about ¥20.0 billion on a commitment basis in the second half of the year; however, our policy is to take action by carefully watching the situation unfold as the current market turmoil continues.

Q.	You indicated that Daido Life would maintain its duration of yen-denominated bonds until the 20-year JGB yield goes up to 2.5%, based on the idea that said duration would be extended in accordance with the rise in interest rates. What do you think about interest rate risk in view of future regulation changes, etc.?
A.	The 20-year JGB yield of 2.5% is only a target, and our policy is to respond flexibly when necessary in accordance with the market environment.

Q.	Please tell us about strengthening your equity capital. For example, your judgment criteria of the solvency margin ratio, etc.
A.	Both Daido Life and Taiyo Life are not in a position where a capital increase is immediately necessary. In the near future, we intend to bolster our financial base as needed, by watching the market situation and economic environment, etc. However, various factors such as the sales policy requirements for superiority in soundness indicators over our competitors, dividends to shareholders, etc., must be considered in addition to the difficult work of forecasting market trends. Also, if we need to raise our capital in the future, we intend to explore the best timing, amount, methods, etc., in consideration of the market environment, financial and profit conditions, etc.