MS& Insurance : SUMMARY OF FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2021

(Yen in millions)

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 SIX MONTHS ENDED SEPTEMBER 30, 2021

	November 19, 2021
Name 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:	Noriyuki Hara, President & CEO
Contact:	Masaru Kenma, Manager, Consolidated Accounting Section, Accounting Department
	Telephone: [phone]

Scheduled date to file the Quarterly Securities Report:	November 19, 2021
Scheduled date to commence dividend payments:	December 6, 2021
Explanatory material for business results:	Available
IR Conference (for institutional investors and analysts):	To be held
	(Note) Amounts of less than one million yen are truncated.

1. Consolidated Financial Highlights for the Six Months Ended September 30, 2021 (April 1, 2021 to September 30, 2021)

(1) Consolidated business performance

Ordinary income	Ordinary profit	Net income attributable to owners
of the parent

Six months ended September 30, 2021 Six months ended September 30, 2020

2,551,183	(6.7)	%	182,187	57.7	%	124,824	29.2 %
2,734,493	(4.3)	%	115,509	6.7	%	96,630	(40.9) %

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

(Note) Comprehensive income	For the six months ended September 30, 2021:	¥	298,949	million	(11.4)	%
	For the six months ended September 30, 2020:	¥	337,336	million	44.5	%
			(Yen)
Net income attributable to owners	Net income attributable to owners
	of the parent per share	of the parent per share
	- Basic	- Diluted

Six months ended	224.26
September 30, 2021
Six months ended	170.67
September 30, 2020

(2) Consolidated financial conditions

	Total assets
September 30, 2021	24,714,404
March 31, 2021	24,142,562

(Reference) Net assets less non-controlling interests

2. Dividends

224.16

170.57

		(Yen in millions)
Net assets	Ratio of net assets less non-
controlling interests to total assets
3,365,216	13.4	%
3,126,657	12.8	%
As of March 31, 2021:	¥ 3,084,349	million
			(Yen)
Dividends per share

	1st quarter	2nd quarter	3rd quarter	4th quarter	Annual total
Year ended March 31, 2021	-	75.00	-	80.00	155.00
Year ending March 31, 2022	-	82.50
Year ending March 31, 2022			-	82.50	165.00
(Forecast)

(Note) Revision of the latest announced dividends per share forecast: Yes

3. Consolidated Earnings Forecasts for the Year Ending March 31, 2022 (April 1, 2021 to March 31, 2022)

					(Yen in millions)
	Ordinary profit		Net income attributable to owners	Net income attributable to owners
		of the parent		of the parent per share (Yen)
Year ending March 31, 2022	330,000	7.7 %	230,000	59.3 %	414.15

Percent figures represent changes from the preceding year.

(Note) Revision of the latest announced earnings forecasts: None

* Notes

1. Changes in significant subsidiaries for the period (changes in specified subsidiaries resulting in changes in scope of consolidation): None
2. Changes in accounting policies and accounting estimates and restatements

1. Changes in accounting policies due to revisions of accounting standards: Yes
2. Changes in accounting policies other than above: None
3. Changes in accounting estimates: None
4. Restatements: None

(Note) For details, please refer to "Changes in Accounting Policies" on page 7 of the Appendix.

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

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

	As of September 30, 2021:	593,632,891 shares
	As of March 31, 2021:	593,473,207 shares
2.	Number of shares of treasury stock
	As of September 30, 2021:	39,544,927 shares
	As of March 31, 2021:	35,263,101 shares
3.	Average number of shares of outstanding stock
	For the six months ended September 30, 2021:	556,603,085 shares
	For the six months ended September 30, 2020:	566,167,247 shares

• This report is unaudited.
• Notes to the earnings forecasts and others

1. 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 "4. Earnings Forecasts" on page 15 of "Explanatory Material for Business Results for the Six Months Ended September 30, 2021". The forecast of consolidated ordinary income for the current fiscal year is not disclosed due to difficulties in calculating reasonable forecast figures stemming from a high susceptibility to natural disasters and market conditions.
2. The Company made its interim consolidated financial statements for the first half of the fiscal year, as required for specified companies which operate the businesses defined in the Article 17-15 Paragraph 2 of the Cabinet Office Ordinance on Disclosure of Corporate Information, etc.

[Appendix]

Contents

		Page
Consolidated Financial Statements and Main Notes
1.	Consolidated Balance Sheets ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	2
2.	Consolidated Statements of Income and Comprehensive Income ・・・・・・・・・・・・・・・・・・・・・・・	3
3.	Consolidated Statements of Changes in Net Assets ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	5
4.	Notes to Consolidated Financial Statements ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	7
	(Notes to Going Concern Assumptions) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	7

[Attachment]

Explanatory Material for Business Results for the Six Months Ended September 30, 2021

1

Consolidated Financial Statements and Main Notes

1. Consolidated Balance Sheets

		(Yen in millions)
	March 31, 2021	September 30, 2021
Assets
Cash, deposits and savings	2,057,789	2,202,075
Receivables under resale agreements	1,999	1,999
Monetary claims bought	175,740	142,335
Money trusts	1,717,804	1,823,562
Investments in securities	16,793,584	17,002,406
Loans	960,174	945,585
Tangible fixed assets	494,818	489,509
Intangible fixed assets	431,929	442,979
Other assets	1,436,401	1,585,572
Assets for retirement benefits	26,768	28,709
Deferred tax assets	30,549	33,679
Customers' liabilities under acceptances and guarantees	28,500	27,000
Bad debt reserve	(13,498)	(11,010)
Total assets	24,142,562	24,714,404
Liabilities
Policy liabilities:	18,107,028	18,425,229
Outstanding claims	2,256,900	2,375,345
Underwriting reserves	15,850,128	16,049,884
Bonds issued	809,093	809,093
Other liabilities	1,602,349	1,577,044
Liabilities for pension and retirement benefits	160,828	151,776
Reserve for retirement benefits for officers	241	204
Accrued bonuses for employees	28,256	25,057
Reserves under the special laws:	244,975	248,556
Reserve for price fluctuation	244,975	248,556
Deferred tax liabilities	34,630	85,226
Acceptances and guarantees	28,500	27,000
Total liabilities	21,015,905	21,349,188
Net assets
Shareholders' equity:
Common stock	100,276	100,534
Capital surplus	553,428	553,680
Retained earnings	1,078,850	1,159,017
Treasury stock	(119,267)	(134,025)
Total shareholders' equity	1,613,287	1,679,207
Accumulated other comprehensive income:
Net unrealized gains/(losses) on investments in securities	1,630,325	1,723,311
Net deferred gains/(losses) on hedges	14,997	10,736
Foreign currency translation adjustments	(178,080)	(94,535)
Accumulated actuarial gains/(losses) on retirement benefits	3,819	2,976
Total accumulated other comprehensive income	1,471,062	1,642,489
Stock acquisition rights	1,019	762
Non-controlling interests	41,288	42,756
Total net assets	3,126,657	3,365,216
Total liabilities and net assets	24,142,562	24,714,404

2

2. Consolidated Statements of Income and Comprehensive Income (Consolidated Statements of Income)

		(Yen in millions)
	Six months ended	Six months ended
	September 30, 2020	September 30, 2021
Ordinary income:	2,734,493	2,551,183
Underwriting income:	1,994,440	2,244,643
Net premiums written	1,869,016	1,928,514
Deposit premiums from policyholders	44,755	27,995
Investment income on deposit premiums from policyholders	19,151	17,390
Life insurance premiums	56,606	265,079
Investment income:	731,980	288,673
Interest and dividends income	150,745	153,448
Investment gains on money trusts	133,615	27,423
Investment gains on trading securities	22,687	10,511
Gains on sales of securities	79,874	61,056
Investment gains on separate accounts	148,417	48,550
Transfer of investment income on deposit premiums from policyholders	(19,151)	(17,390)
Other ordinary income	8,072	17,865
Ordinary expenses:	2,618,984	2,368,995
Underwriting expenses:	2,210,470	1,948,136
Net claims paid	908,031	941,688
Loss adjustment expenses	92,166	96,765
Commissions and collection expenses	365,045	372,817
Maturity refunds to policyholders	112,708	82,696
Life insurance claims	157,647	227,618
Provision for outstanding claims	80,305	53,097
Provision for underwriting reserves	479,925	171,634
Investment expenses:	60,276	71,192
Investment losses on money trusts	20,263	1,815
Losses on sales of securities	4,441	3,185
Impairment losses on securities	7,928	23,824
Losses on derivative transactions	26,116	17,802
Operating expenses and general and administrative expenses	330,627	337,820
Other ordinary expenses:	17,609	11,846
Interest expense	7,242	7,838
Ordinary profit	115,509	182,187
Extraordinary income:	8,570	990
Gains on sales of fixed assets	456	990
Reversal of reserve for losses on sales of shares of subsidiaries and associates	8,113	-
Extraordinary losses:	11,382	7,418
Losses on sales of fixed assets	2,763	2,404
Impairment losses on fixed assets	1,587	1,434
Provision for reserves under the special laws:	5,830	3,580
Provision for reserve for price fluctuation	5,830	3,580
Losses on change in equity	1,200	-
Income before income taxes	112,697	175,759
Income taxes - current	50,241	35,718
Income taxes - deferred	(36,146)	13,354
Total income taxes	14,095	49,073
Net income	98,602	126,685
Net income attributable to non-controlling interests	1,971	1,861
Net income attributable to owners of the parent	96,630	124,824
3