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Tokio Marine Holdings Inc.1 10 July 2008

Update Report – FY 2008 Results

Subprime & credit market exposure and weak economic conditions to limit growth

Common HOLD Fundamental research indicates a 6% upside in the common stock over the next 6-12 months. We
Direct accessthetotarget
have calculated the price
full based
report
on free of charge
fundamental factors, at
using a weighted average of target
Stock http://www.iirgroup.com/researchoracle/viewreport/show/20277
prices obtained using DCF and comparative valuation methodologies. We continue to take a 6-12
month investment horizon for the stock, as the market in which it operates is highly cyclical and,
therefore, trends can be captured more accurately with a shorter investment horizon.
Ticker: 8766.T
Target price: ¥4,349
Current price: ¥4,120 We reiterate the common stock a HOLD with a 6-12 month target price of ¥4,349.

ADR HOLD The ADR is expected to appreciate approximately 9% over the next 6-12 months as the fundamental
upside is further augmented by 2 percentage points upside purely attributable to appreciation of the
Japanese yen against the US dollar and 1 percentage point upside attributable to the anticipated
Ticker: TKOMY.PK
reduction in the ADR discount.2
Target price: US$41.20
Current price: US$37.90 We reiterate the ADR (1 ADR = 1 common share) a HOLD with a 6-12 month target price of US$41.20.

Supervisor: Somnath Banerjee
Analyst: Silky Jain
Editor: Heloise Capon
Global Research Director:
Satish Betadpur, CFA
Investment horizon - short term actionable trading strategies
This report addresses the needs of strategic investors with a long term investment horizon of 6-12 months. If this
report is provided to you by your broker under the Global Settlement, you may now also access (free of charge) the
short term trading outlook that we publish from time to time for this issuer, looking at the coming 5-30 days for
readers with a shorter trading horizon. These are available online only at www.researchoracle.com

Next news due:

1Q 09 results, 11 August 2008
Report summary
Tokio Marine Holdings Inc. (Tokio Marine) reported a y-o-y decline in ordinary income in FY 2008, as
modest growth in premiums across business lines was more than offset by a decline in underwriting
income. The company’s net premiums written witnessed moderate y-o-y growth as a result of higher
premium income from the property and casualty (P&C) insurance business. However, adjusted3 net
income declined y-o-y in FY 2008, and was below our estimate. Going forward, we believe Tokio
Marine’s focus on expanding its presence in emerging markets such as China, India and Brazil will
support the company’s growth. However, we remain concerned about weakness in the Japanese life
insurance market, Tokio Marine’s exposure to US subprime assets and volatility in the global as well as
Japanese equity and credit markets. We believe that although the fundamentals of the company
remain strong, the positives have already been factored into the common stock price. Therefore our
outlook for the stock remains neutral.

Currency impact for US investors

The impact by itself of the anticipated currency movements on the ADR (now US$37.90), without
considering changes in the share price, is broadly negative and is expected to be:

Over 6 months: US$44.13

Over 12 months: US$38.67

Page 1 Refer to page 4 for footnotes