CORRECTING and REPLACING Fuji Fire & Marine Reports Interim FY3/09 Results

TOKYO--(BUSINESS WIRE)--Second graph, second sentence of release dated November 19, 2008 should read: Furthermore one-off expenditures for an agent system (sted Furthermore ¥2.6 billion in one-off expenditures for an agent system).

The corrected release reads:

FUJI FIRE & MARINE REPORTS INTERIM FY3/09 RESULTS

Fuji Fire & Marine Co., Ltd. (“Fuji Fire & Marine”)(TOKYO:8763)(ISIN:JP3808000008), one of Japan’s leading insurance companies, announced that total net premiums written (NPW) declined by a small margin during the interim period due to revisions in the compulsory automobile insurance system (See Chart 1). Importantly general accounts, which exclude compulsory automobile liability (CALI) and earthquake insurances, actually grew in spite of the continued adverse conditions within the insurance industry by 0.4% from the previous interim period on the back of a strategy focusing upon more profitable insurance lines. In particular, favorable sales of residential fire insurance and casualty insurance led to 9.2% and 3.8% year-over-year increases respectively in both of these policies written on the non-consolidated basis (See Charts 2 and 3).

The negative impact of volatility in global financial markets caused us to record a ¥9.1 billion loss in our investment income as disclosed previously on October 23, 2008. Furthermore one-off expenditures for an agent system also contributed to consolidated losses at the ordinary and net levels of ¥7.6 and ¥4.6 billion respectively during the interim period (See Chart 1).

The volatility in the global financial markets also contributed to valuation losses of our marketable securities and reduced our net assets by ¥32.4 billion from the end of the previous year. Therefore our solvency margin stood at 527.3% at the end of the interim period. Due to the results seen during the first half, we have revised down both our consolidated and non-consolidated earnings projections for the full year to March 2009 as disclosed previously on November 11, 2008 (See chart 1).

First Half Highlights
●		Non-consolidated:
		-		NPW from fire and casualty rose by 9.2% and 3.8% year-over-year. Our core general accounts insurance premiums written rose by 0.4% year-over-year despite adverse conditions within the industry.
		-		While net claims paid increased due primarily to automobile insurance policies, on an incurred basis net claims actually declined due to the withdrawal of outstanding reserves during the interim period.
		-		Volatility in the global financial markets contributed to an impairment accounting loss on marketable securities of ¥9.1 billion.
		-		Expenditures for an agent system during the first half contributed to a rise in operating costs from ¥52 to ¥55 billion.
		-		Extraordinary profit of ¥2.5 billion was realized due to withdrawal of price fluctuation reserves.
●		Consolidated:
		-		Premium income for life insurance policies earned by a subsidiary company The Fuji Life Insurance Co., Ltd. grew by 12.5% year-over-year to ¥21.4 billion during the interim period and net income rose by 86.6% to ¥0.4 billion.

About Fuji Fire & Marine

Fuji Fire &Marine is a leading insurance company providing non-life insurance products and services through more than 200 offices across Japan. www.fujikasai.co.jp/english/

Chart 1: Consolidated Earnings
(Units: ¥ million)
Interim		NPW		Ordinary Income		Net Income
FY3/09		146,024		(7,696)		(4,695)
FY3/08		148,391		5,754		3,599
Full Year		Ordinary Revenues		Ordinary Income		Net Income
Initial FY3/09 Projections		390,000		12,700		7,500
Revised FY3/09 Projections		387,000		(1,900)		(1,800)
Change		(3,000)		(14,600)		(9,300)
FY3/08 Results		411,858		16,190		7,300

Chart 2: NPW by Insurance Category (Non-consolidated)
		Interim FY3/08				Interim FY3/09
(Units: ¥ million)		Value		YY Change		Value		YY Change
Fire		22,314		0%		24,374		9.2%
Accident & Health		14,850		3.6%		14,696		(1.0%)
Automobile		80,861		(1.5%)		79,168		(2.1%)
Casualty		7,710		1.8%		8,006		3.8%
Marine		1,054		18.9%		1,043		(1.0%)
CALI		21,565		(2.7%)		18,830		(12.7%)
TOTAL		148,357		(0.7%)		146,120		(1.5%)

Chart 3: Year-to-year Growth of General Accounts in NPW (Non-consolidated)
YY Growth		1HFY3/05		1HFY3/06		1HFY3/07		1HFY3/08		1HFY3/09
General Accounts		(2.0%)		(0.2%)		0.8%		(0.3%)		0.4%