Corporate Governance Policies

Tokio Marine Holdings, Inc. (the “Company”), in line with the Tokio Marine Group Corporate Philosophy, is committed to the continuous enhancement of corporate value by fulfilling its responsibilities to shareholders, customers, society, employees and other stakeholders. For this purpose, the Company hereby establishes a sound and transparent corporate governance system and, as a holding company, aims to exercise appropriate control over the Tokio Marine Group companies.

Tokio Marine Holdings corporate governance policies shall be reviewed and amended as necessary to adapt to changes in the business environment.

I. Management Organization

1. The Board of Directors

(1) Responsibilities of the Board of Directors and its Members

The Board of Directors is responsible for decisions on important matters relating to the execution of the Company’s business, for supervising the performance of individual directors, and establishing an effective internal control system. In addition, as the Board of Directors of a holding company, it is responsible for determining medium- to long-term business strategies and various basic business policies for the Tokio Marine Group.

Each director shall endeavor to enable the Board of Directors to fulfill these responsibilities and functions.

(2) Composition of the Board of Directors

The number of directors shall generally be approximately ten members, of whom, as a general rule, at least three shall be outside directors.

(3) Directors’ Term of Office

Directors shall be appointed for a term of office of one year. Directors may be re-appointed.

2. Corporate Auditors and the Board of Corporate Auditors

(1) Responsibilities of Corporate Auditors and the Board of Corporate Auditors

Corporate auditors, as an independent body entrusted by shareholders, shall audit the performance of directors, with the aim to ensure sound and fair management and accountability.

Corporate auditors shall endeavor to conduct a high quality audit in accordance with the regulations of the Board of Corporate Auditors, auditing standards, auditing policies and auditing plans determined by the Board of Corporate Auditors.

(2) Composition of the Board of Corporate Auditors

The number of corporate auditors shall generally be around five. As a general rule, a majority of the corporate auditors shall be outside corporate auditors.

3. Nomination Committee and Compensation Committee

(1) Responsibilities of the Nomination and Compensation Committees

The Company shall have a Nomination Committee and a Compensation Committee to serve as advisory bodies to its Board of Directors.

The Nomination Committee shall deliberate on the following matters and report to the Board of Directors:

• The appointment and dismissal of directors and corporate auditors of the Company;
• The appointment and dismissal of directors and corporate auditors of the principal business subsidiaries (*) of the Company; and
• The criteria for the appointment of directors and corporate auditors of the Company and its principal business subsidiaries.

The Compensation Committee shall deliberate on the following matters and report to the Board of Directors:

• Evaluation of the performance of directors of the Company;
• Evaluation of the performance of directors of the principal business subsidiaries of the Company; and
• The compensation system for directors and corporate auditors of the Company and its principal business subsidiaries

(*) The term “business subsidiary” refers to companies in which the Company directly holds a majority of the voting rights.

(2) Composition of Nomination and Compensation Committees

The Nomination Committee and the Compensation Committee shall generally each consist of approximately five members. As a general rule, a majority of the members of each committee shall be selected from outside of the Company, and the chairman of each committee shall be one of the outside members.

II. Compensation System for Directors and Corporate Auditors of the Tokio Marine Group

(1) Compensation of Directors and Corporate Auditors of the Company

Compensation for full-time directors consists of three elements: fixed compensation; bonuses related to the business performance of the Company and the performance of the individual; and stock options.

Compensation for corporate auditors and part-time directors consists of two elements: fixed compensation and stock options.

(2) Compensation of Directors and Corporate Auditors of Principal Business Subsidiaries

The compensation system for directors and corporate auditors of the Company’s principal business subsidiaries shall generally be identical to that applied to directors and corporate auditors of the Company.

III. Corporate Governance of Subsidiaries

(1) Governance System

In the "Basic Policies for Internal Controls", the Company shall prescribe basic terms for the management of the business subsidiaries, systems relating to the promotion of compliance, risk management and internal auditing of the Tokio Marine Group, and the Company shall manage its subsidiaries through the establishment and operation of a governance system based on these basis terms.

(2) Evaluation of Business Results of the Business Subsidiaries

The Company shall evaluate the business results of each business subsidiary of the Tokio Marine Group on an annual basis, comparing actual results with previously determined business results indices. The results of such evaluations shall be considered in the determination of the compensation for the directors of each business subsidiary.

Adopted on May 27, 2005
Revised on July 5, 2007
Revised on December 17, 2007
Revised on July 1, 2008
The Board of Directors of Tokio Marine Holdings, Inc.