May 19, 2020
Sony Financial Holdings Inc.

Summary Information on Sony Assurance’s Financial Results
for the Year Ended March 31, 2020
<Contents>
1. Balance Sheets

P.2

2. Statements of Income

P.4

3. Financial Summary

P.5

4. Premiums and Losses Paid by Type of Policy

P.7

5. Risk-monitored Loans

P.7

6. Securities

P.8

7. Non-consolidated Solvency Margin Ratio

P.9

Disclaimer:This English translation is prepared for the readers’ convenience. When there are any discrepancies between originalJapanese version and English translation version, the original Japanese version always prevails.

11. Balance Sheets(Millions of yen)
As of March 31, 2019

As of March 31, 2020

Assets:Cash and deposits

20,04328,67100Deposits

20,04328,670Call loans－10,000Securities

157,959

147,813

Japanese government bonds

76,39072,078Japanese local government bonds

50,50442,610Japanese corporate bonds

29,26830,377

Japanese stocks

1,599

1,194

Foreign securities

198

1,553

Tangible fixed assets

1,689

1,266

Buildings

169

152

Construction in progress

63

57

Other tangible fixed assets

1,456

1,056

10,012

14,845

Software

6,646

7,624

Software in progress

3,356

7,210

911

18,60919,884

Accrued premiums

1,234

1,241

Due from reinsurers

290

67

Due from foreign reinsurers

15

31

11,11512,307

Accrued income

161

146

Money on deposits

530

543

Suspense payments

5,260

5,547

Deferred tax assets

11,32812,388

Total Assets

219,643234,870

Cash

Intangible fixed assets

Other intangible fixed assets
Other assets

Accounts receivable2

(Millions of yen)
As of March 31, 2019

As of March 31, 2020

Liabilities:
Underwriting reserves

168,494

179,511

Reserve for outstanding losses and claims

40,67440,354Underwriting reserves

127,819

139,157

13,018

14,101

235

380

59

1,938

1,808

Deposits received

73

74

Accounts payable

5,099

5,179

Suspense receipt

5,666

6,649

Reserve for employees’ retirement benefits

1,857

1,972

Reserve for employees’ bonuses

1,236

1,231

Reserve under the special laws

238

268

Reserve for price fluctuations

238

268

184,844

197,085

20,00020,000Capital reserve

3,389

3,389

Total capital surplus

3,389

3,389

Legal retained earnings

1,092

1,592

Other retained earnings

9,367

12,176

9,367

12,176

Total retained earnings

10,46013,768

Total shareholders’ equity

33,84937,158Net unrealized gains (losses) on
available-for-sale securities, net of taxes

949

626

Total valuation and translation adjustments

949

626

34,79837,785

219,643234,870

Other liabilities
Due to reinsurers
Due to foreign reinsurers
Income taxes payable

Total Liabilities
Net Assets:
Shareholders’ equity
Common stock
Capital surplus

Retained earnings

Unappropriated retained earnings

Valuation and translation adjustments

Total Net Assets
Total Liabilities and Net Assets

32. Statements of Income(Millions of yen)
For the year ended
March 31, 2019

For the year ended
March 31, 2020

115,102

121,728

113,174

119,747

113,101

119,352

Interest and dividends on deposits of premiums

7274

Reversal of reserves for outstanding losses and claims

－320

1,857

1,935

1,372

1,337

Gains on sale of securities

557

672

Transfer to interest and dividends on deposits of premiums

(72)

(74)

70

44

108,204

113,655

Underwriting expenses

78,43582,368Net losses paid

56,60860,315

Loss adjustment expenses

8,220

9,001

Net commissions and brokerage fees

1,724

1,713

Provision for reserve for outstanding losses and claims

1,139－

Provision for underwriting reserves

10,741

11,3380－0－29,766

31,283

232

3

6,897

8,072

Extraordinary Gains－－

Extraordinary Losses

3949

Losses on disposal of fixed assets

720

Provision for reserve under the special laws

3129

Provision for reserve for price fluctuations

31

29

Income Before Income Taxes

6,858

8,022

Income Taxes—Current

3,325

3,148

Income Taxes—Deferred(1,466)(934)

Total Income Taxes

1,858

2,214

Net Income

4,999

5,808

Ordinary Revenues
Underwriting incomeNet premiums written

Investment income
Interest income and dividends

Other ordinary income
Ordinary Expenses

Investment expenses
Losses on sale of securities
Operating, general and administrative expenses
Other ordinary expenses
Other ordinary expenses
Ordinary Profit4

3. Financial Summary (Comparison to previous year)(Millions of yen)
For the year ended
March 31, 2019

For the year ended
March 31, 2020

YoY change(Amount)

YoY change(%)

Gross direct premiums written

112,198

119,135+6,937+6.2

Direct premiums written

112,198

119,135+6,937+6.2

113,174

119,747+6,573+5.8

113,101

119,352+6,251+5.5

Underwriting expenses

78,43582,368+3,933+5.0

Net losses paid

56,60860,315+3,707+6.5

Loss adjustment expenses

8,220

9,001+780+9.5

Net commissions and brokerage fees

1,724

1,713

(11)

(0.6)

1,857

1,935

+78

+4.2

1,372

1,337(35)

(2.6)

557

672

+115

+20.7

0－(0)

(100.0)0－(0)(100.0)Operating, general and administrative expenses

29,766

31,283+1,517+5.1

Operating, general and administrative
expenses related to underwriting

29,687

31,212+1,524+5.1

6741(26)(38.9)

6,897

8,072+1,175

+17.0

5,050

6,165+1,115+22.1

Extraordinary Gains－－－－

Extraordinary Losses

3949+10+27.2

Extraordinary gains (losses), net(39)

(49)

(10)

－

Income Before Income Taxes

6,858

8,022+1,164+17.0

Income Taxes—Current

3,325

3,148(176)(5.3)

Income Taxes—Deferred(1,466)

(934)

+531

－

Total Income Taxes

1,858

2,214+355+19.1

Net Income

4,999

5,808+808+16.2

Net loss ratio

57.3%

58.1%

Net expense ratio

27.8%

27.6%

Yield on investments (income basis)

0.80%

0.74%

Yield on investments (realized basis)

1.12%

1.11%

Adjusted ordinary profit

10,563

11,297+733+6.9

E.I. loss ratio

61.3%

61.7%

Underwriting income
Net premiums written

Investment income
Interest income and dividends
Gains on sale of securities
Investment expenses
Losses on sale of securities

Other ordinary income (losses), net
Ordinary profit
Underwriting profit(Reference)
Yield on investments (fair value basis) : 0.33% for the year ended March 31, 2019 and 0.85% for the year ended March 31, 2020.
Notes:
1. Underwriting profit = Underwriting income – (Underwriting expenses + Operating, general and administrative expenses related to underwriting) ± Other income (expenses)
Other income (expenses) is the amount equivalent to the corporate income taxes for compulsory automobile liability insurance, etc.
2. Net loss ratio = (Net losses paid + Loss adjustment expenses) / Net premiums written x 100
3. Net expense ratio = (Net commissions and brokerage fees + Operating, general and administrative expenses related to underwriting) / Net premium written x 100
4. Calculation method for yield on investments is described in next page.
5. Adjusted ordinary profit = Ordinary profit + Provision for catastrophe reserve＊Provision for catastrophe reserve is described as positive amount.
6. E.I. loss ratio = (Net losses paid + Provision for reserve for outstanding losses and claims + Loss adjustment expenses) / Earned premiums x 100＊Earthquake insurance and compulsory automobile liability insurance are excluded from the above calculation.

5

Attachment

Calculation methods for yield on investments
1. Yield on investments (income basis)
The results of investment in assets are indicated as income revenues (interest income and dividends).
Interest income and dividends on investment assets is the numerator, and acquisition cost is the denominator.
• Numerator: Interest income and dividends• Denominator: Average balance of either acquisition cost or amortized cost
2. Yield on investments (realized basis)
The results of investment in assets are indicated as the contribution to net income (loss) for the period(statements of income).
Realized profit and loss is the numerator, and acquisition cost is the denominator.
• Numerator: Investment income + Interest and dividends on deposits of premiums – Investment expenses• Denominator: Average balance of either acquisition cost or amortized cost
3. (Reference) Yield on investments (fair value basis)
An indicator of investment efficiency based on fair value. Realized profit and loss plus net unrealized gains (losses)
is the numerator, and fair value of investment assets is the denominator.
• Numerator = (Investment income + Interest and dividends on deposits of premiums – Investment expenses)+ (Net unrealized gains (losses) at end of period* – Net unrealized gains (losses) at end of previous period*)• Denominator =Average balance of either acquisition cost or amortized cost
+ Net unrealized gains (losses) on available-for-sale securities at end of previous period**Amounts before tax deductions

6

4. Premiums and Losses Paid by Type of Policy
Direct premiums written(Millions of yen)
For the year ended
March 31, 2019
AmountComposition

For the year ended
March 31, 2020
AmountYoY change%

Composition%

YoY change%%

Fire616

0.5+198.8

2,275

1.9

Marine

－－－－－

－

8,823

7.9+1.79,253

7.8+4.9

102,758

91.6+4.7

107,606

90.3

+4.7

－

－

－

－

－

－

112,198

100.0+4.8

119,135

100.0+6.2

Personal accident
Voluntary automobile
Compulsory automobile liability

Total+269.2

Net premiums written(Millions of yen)

For the year ended
March 31, 2019

For the year ended
March 31, 2020

AmountComposition

265

0.2

+1,533.0

YoY change%

Fire
MarinePersonal accident
Voluntary automobile
Compulsory automobile liability
Total

AmountComposition

1,2841.1%

YoY change%%+384.6(0)(0.0)(100.0)

00.0－

8,872

7.8(0.2)

9,044

7.6+1.9

102,458

90.6+4.7

107,31189.9+4.7

1,505

1.3+2.4

1,712

1.4+13.8

113,101

100.0+4.5

119,352

100.0+5.5

Net losses paid, net loss ratio(Millions of yen)

For the year ended
March 31, 2019
AmountYoY change

15+126.8

For the year ended
March 31, 2020
Net loss ratio%Fire

AmountYoY change

205+1,266.6%
21.0

Net loss ratio%%
20.0

10+291.0－(3)(136.4)－

Personal accident

3,009

+11.7

37.6

3,249+8.0

39.2

Voluntary automobile

52,223+7.8

58.6

55,518+6.3

59.8

Compulsory automobile liability

1,350+2.6

89.7

1,346(0.3)

78.6

Total

56,608+7.9

57.3

60,315+6.5

58.1

Marine5. Risk-monitored Loans
Not applicable76. Securities(1) Trading securities
Not applicable(2) Held-to-maturity securities(Millions of yen)
As of March 31, 2019

As of March 31, 2020

Balance sheet
amountFair value

Difference

Balance sheet
amountFair value

Difference

Japanese bonds

79,921101,571

21,65074,58797,506

22,918Foreign securities

198

208

1098

104

6

80,119101,779

21,66074,68597,611

22,925

－－－

3,628

3,555

(72)

80,119101,779

21,66078,314

101,167

22,852

Fair value exceeding balance sheet amount

Subtotal
Fair value not exceeding balance sheet amountJapanese bonds
Total(3) Available-for-sale securities(Millions of yen)
As of March 31, 2020

As of March 31, 2019
Balance sheet
amountAcquisition
cost

Difference

Balance sheet
amountAcquisition
cost

Difference

Japanese bonds

49,97049,89970

21,81921,796

23Japanese stocks

1,599

324

1,274

1,194

202

991

Subtotal

51,56950,223

1,345

23,014

21,9981,015

26,271

26,298(27)

45,02945,124(95)

－－－

1,455

1,505

(49)

26,271

26,298(27)

46,485

46,630(144)

77,84076,521

1,318

69,49968,628870

Balance sheet amount exceeding acquisition cost

Balance sheet amount not exceeding acquisition cost
Japanese bonds
Foreign securities
Subtotal
Total(4) Available-for-sale securities sold during the year
(Millions of yen)
For the year ended March 31, 2019

For the year ended March 31, 2020

Amount ofsales

Total gains
on salesTotal losses
on salesAmount ofsales

Total gains
on salesTotal losses
on salesJapanese bonds

3,108

90

1,701

1－

Japanese stocks

637

547－

794

671－

3,746

557

0

2,496

672－

Total

8

7. Non-consolidated Solvency Margin Ratio(Millions of yen)(A) Total non-consolidated solvency margin
Capital or treasury, etc.
Reserve for price fluctuations

As of March 31, 2019

As of March 31, 2020

60,01066,674

31,34934,252

238

268

Contingency reserve

122131

Catastrophe reserve

24,63627,860－－1,186783

General reserve for possible loan losses
Net unrealized gains (losses) on available-for-sale securities and net
deferred gains (losses) on hedging instruments (before tax deductions)
Net unrealized gains (losses) on real estate－－

Excess refund reserve－－

Subordinated debt－－

The portion of the excess refund reserve and subordinated debt
that is not included in the margin
Deductible items－－

Others(B) Total non-consolidated risk

(R1+R2)2+(R3+R4)2+R5+R6

Ordinary insurance risk

(R1)

－－

2,476

3,379

14,76015,286

13,181

13,711

Third-sector insurance risk

(R2)

00

Assumed interest rate risk

(R3)

123

132

Asset management risk

(R4)

1,861

1,829

Business management risk

(R5)

325

335

(R6)
Major catastrophe risk(C) Non-consolidated solvency margin ratio

1,105

1,100

813.0 %

872.3 %[(A)／{(B)×1/2}]×100

Note: The above figures are calculated based on provisions in Articles 86 and 87 of the Ordinance for Enforcement of the Insurance
Business Act of Japan and the Ministry of Finance Public Notice No. 50 (1996).

9