Public statement relating to Settlement Agreement between the Central Bank of Ireland and Hitachi Capital Insurance Europe Limited

• Date: 27 March 2012

PO BOX 559 T +353 1 224 4000

Dame Street F +353 1 671 6561

Dublin 2

Settlement Agreement between the Central Bank of Ireland

and

Hitachi Capital Insurance Europe Limited

The Central Bank of Ireland (“the Central Bank”) has entered into a Settlement Agreement

with effect from 27 March 2012 with Hitachi Capital Insurance Europe Limited (“the firm”), a

regulated financial services provider, in relation to a breach of section 24(1) of the Insurance

Act 1989 (as amended).

The breach relates to a failing by the firm to comply with an undertaking given by the firm to

the Central Bank that it would maintain available assets of at least 150% of the total

required solvency margin or its minimum guarantee fund of €3.5 million, whichever was the

greater. As the solvency margin required to be maintained by the firm was greater than the

minimum guarantee fund required, the firm was required to hold available assets to meet

its solvency margin of at least €7,650,000.

The firm failed to hold sufficient assets to meet its required solvency margin of at least

€7,650,000 from 31 March 2010 to 29 June 2010 inclusive. Throughout the period of non-

compliance, the greatest shortfall in available assets amounted to €949,000 and the lowest

shortfall in available assets amounted to €620,000.

The Central Bank reprimanded the firm and required it to pay a monetary penalty of

€25,000.