We believe that a series of natural catastrophes in 2011 have weakened the capitalization of NKSJ Group. We are lowering the rating on SJ Singapore to 'A' from 'A+' and removing it from CreditWatch after a similar action on its parent company. The stable outlook reflects the outlook on Sompo Japan Insurance Inc. and SJ Singapore's strategic importance to the group. On Feb. 23, 2012, Standard&Poor's Ratings Services lowered its long-term financial strength rating on Sompo Japan Insurance (Singapore) Pte. Ltd. to 'A' from 'A+' and removed it from CreditWatch with negative implications, where it was placed on Nov. 22, 2011. The outlook on the rating is stable. The downgrade on Sompo Japan Insurance (Singapore) (SJ Singapore) follows
