MS Frontier Reinsurance Limited strengthens its capital base from US$ 200 million to US$ 300 million, and further expands global reinsurance operations.

November 10th, 2006

MS Frontier Reinsurance Limited, Hamilton, Bermuda (President & CEO: Yasunori Araga) is pleased to announce the increase of its capital base from US$ 200 million to US$ 300 million with an effective date of November 13, 2006, by way of increasing its surplus by US$ 100 million, fully contributed by its parent company, Mitsui Sumitomo Insurance Company Limited, Tokyo, Japan.

Following last year's record-breaking hurricane losses in the US and the substantial reviews in catastrophe modeling as a consequence, the demand of highly-secured reinsurance capacity against natural catastrophe perils is considered to remain very strong. To cope with this encouraging market situation, MS Frontier Re has decided to bolster its financial strength to further expand its global property catastrophe reinsurance operations in a more agile and flexible manner.

MS Frontier Re, established in 1997, carries an insurer’s financial strength rating of AA- of Standard & Poor’s, and is positioned as one of the most strategically important units within the Mitsui Sumitomo Insurance Group. Through in-depth expertise in catastrophe analysis, a strong physical presence in Bermuda as a part of a worldwide network, and a highly respected history of client commitment under a globally known