Consolidated Financial Summary (Japanese GAAP)
for the Three Months Ended June 30, 2019
August 8, 2019Sony Financial Holdings Inc.
(URL: https://www.sonyfh.co.jp/index_en.html)
Stock exchange listing: Tokyo Stock Exchange (code number: 8729)
Representative:
Shigeru Ishii, President and Representative Director
Inquiries:
Yasuo Hasegawa, General Manager-Investor Relations Dept.
(Telephone: +81-3-5290-6500)(Fractional amounts of less than ¥1 million are discarded.)Company name:

1. Consolidated financial results for the three months ended June 30, 2019(1) Operating results
Ordinary Revenues
Millions of yen% change

Millions of yen% change

Millions of yen% change413,654(1.7)

34,39619.3

24,01419.6

420,658

15.3

28,825

51.7

20,07759.8

For the three months ended
June 30, 2019
For the three months ended
June 30, 2018
Note: Comprehensive income:

Profit Attributable to Owners of
the Parent

Ordinary Profit

For the three months ended June 30, 2019:¥25,539 million:

62.2%

For the three months ended June 30, 2018:¥15,750 million:

12.8%

Net Income per
Share(Fully Diluted)

Net Income per
Share
For the three months ended
June 30, 2019
For the three months ended
June 30, 2018

Yen

Yen

55.20

55.19

46.15

46.15

(2) Financial condition
Total Assets
As of June 30, 2019
As of March 31, 2019
Note: Net assets attributable to shareholders:

Total Net Assets

Net Asset Ratio

Millions of yen

Millions of yen%

13,989,361
13,468,215

655,213656,846

4.7
4.9

As of June 30, 2019:¥ 653,072 million

As of March 31, 2019:¥ 654,800 million

2. Dividends
Dividend per Share

Record Date
For the year ended
March 31, 2019
For the year ending
March 31, 2020
For the year ending
March 31, 2020
(forecast)

1st QuarterYen

2nd Quarter
Yen

3rd Quarter
Yen

－

0.00

0.00

Year-End
Yen

Annual Total
Yen

－

62.50

62.50

－

65.00

65.00

－

Note: Changes in dividend forecast since the most recent public announcement: None

3. Forecast of consolidated financial results for the year ending March 31, 2020
(Percentage figures represent changes from the results of the previous fiscal year.)
Profit Attributable to
Net Income per
Ordinary Revenues
Ordinary Profit
Owners of the Parent
Share
For the year ending
March 31, 2020

Millions of yen% change

Millions of yen% change

Millions of yen% changeYen

1,690,000

3.7

98,0004.4

65,0004.7

149.42

Note: Changes in forecast of financial results since the most recent public announcement: None

4. Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries accompanying changes in scope of
consolidation): None
(2) Application of special accounting methods for preparing quarterly consolidated financial statements: None
(3) Changes in accounting policies, accounting estimates and restatements of the consolidated financial statements(a) Changes in accounting policies resulting from the revision of the accounting standards and other regulations: None(b) Changes in accounting policies due to other reasons: None(c) Changes in accounting estimates: None(d) Restatements of the consolidated financial statements: None
(4) Number of shares outstanding (common stock)(a) Number of shares outstanding (including treasury shares)
As of June 30, 2019:
435,062,983 shares
As of March 31, 2019:
435,062,983 shares(b) Number of treasury shares
As of June 30, 2019:37,425 shares
As of March 31, 2019:37,425 shares(c) Weighted-average number of shares
For the three months ended June 30, 2019:
435,025,558 shares
For the three months ended June 30, 2018:434,994,276 shares
Status of interim audit proceduresThis document is exempt from interim audit procedures by certified public accountants or audit firm.

Content of Supplemental Materials
I. Consolidated Financial Statements
1. Consolidated Balance Sheets ……………………………………………………………………………

2

2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income) ……………………………………………………………………

4(Consolidated Statements of Comprehensive Income) …………………………………..………………

7

3. Note on Going Concern………………...……………………...……………………...…………………

8

4. Material Changes in Stockholders’ Equity………………...……………………...……………………..

8

5. Segment Information ……………………………………...……………………………..………………

8

II. Attachment
Consolidated Financial Results for the Three Months Ended June 30, 2019 and Sony Life’s MCEV as
of June 30, 2019……………………………………………………………………………………………

10* The conference call for explaining the Sony Financial Group's financial results will be held at 15:30 (Tokyo),
August 8, 2019. Please note that our conference call will be held only in Japanese.
We will upload the presentation materials with speech text on August 8, 2019 after 15:00, the translation of theconference call (audio) on August 9 and the Q&A summary (text) at a later date on the Earnings Releases andPresentation Materials page of our website:
https://www.sonyfh.co.jp/en/financial_info/results/index.html* On August 8, 2019, Sony Financial Holdings Inc.’s (SFH’s) significant subsidiaries—Sony Life Insurance Co.,
Ltd. (Sony Life), Sony Assurance Inc. (Sony Assurance) and Sony Bank Inc. (Sony Bank)—will announce theirfinancial results for the three months ended June 30, 2019. SFH has prepared an English-language summary of
those Japanese announcements made by the above subsidiaries, solely for the convenience of non-Japanesereaders.

- 1 -I. Consolidated Financial Statements
1. Consolidated Balance Sheets(Millions of yen)
As of March 31, 2019

As of June 30, 2019¥¥

AssetsCash and due from banks

415,894

516,419

Call loans and bills bought

93,70090,100

Monetary claims purchased

4,916

4,465

291,324

289,853

Securities

10,373,188

10,740,010

Loans

Money held in trust

1,942,546

1,983,471

Tangible fixed assets

104,128

103,613

Intangible fixed assets

43,90942,660Due from reinsurers

1,341

615

Foreign exchanges

8,471

9,756

159,361

179,240

Net defined benefit asset

3,476

3,563

Deferred tax assets

27,55627,193

Other assets

Reserve for possible loan losses(1,602)

Total Assets

¥

- 2 -

13,468,215(1,603)¥

13,989,361

(Millions of yen)
As of March 31, 2019

As of June 30, 2019¥¥

Liabilities
Policy reserves and others
Reserve for outstanding claims

9,479,071

9,651,365

78,28577,934

9,396,241

9,568,963

4,544

4,467

Due to agencies

2,073

1,683

Due to reinsurers

5,769

4,545

Policy reserves
Reserve for policyholders’ dividends

Deposits

2,302,313

2,339,871

Call money and bills sold

130,611204,283

Borrowed money

203,871204,015

Foreign exchanges

244

206

Bonds payable

20,00020,000

Other liabilities

578,477

820,766

Reserve for employees’ bonuses

4,377

2,039

Net defined benefit liability

34,081

34,270Reserve under the special laws

50,34350,957

Reserve for price fluctuations

50,34350,957

Deferred tax liabilities

24

33

Deferred tax liabilities on land revaluation

109

109

12,811,368

13,334,148

Common stock

19,963

19,963

Capital surplus

191,193

191,193

Retained earnings

319,886

316,711

(55)

(55)

530,987

527,813

Net unrealized gains (losses) on available-for-sale securities, net oftaxes

128,800

130,165

Total Liabilities
Net Assets

Treasury stock
Total shareholders’ equity

Net deferred gains (losses) on hedging instruments, net of taxes(1,077)(1,134)

Land revaluation, net of taxes(2,439)(2,439)Remeasurements of defined benefit plans, net of taxes(1,470)(1,332)

Total accumulated other comprehensive income

123,812125,259

Subscription rights to shares

149

165

Non-controlling interests

1,896

1,975

656,846655,213

Total Net Assets
Total Liabilities and Net Assets

¥

- 3 -

13,468,215¥

13,989,361

2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)

Ordinary Revenues
Ordinary Revenues from the Life Insurance Business

For the three months ended
June 30, 2018

For the three months ended
June 30, 2019¥¥

420,658

413,654378,636

368,150

268,909

300,901

268,418

300,348

106,995

64,357(Interest income and dividends)

40,42343,501(Income from money held in trusts, net)

1,127

1,127

－

7

(Gains on sale of securities)

3,265

1,238

(Foreign exchange gains, net)

12,287－(Gains on separate accounts, net)

49,892

18,480

2,731

2,891

29,701

31,86529,067

31,232

29,05130,418(Interest and dividends on deposits of premiums)

16

19(Reversal for reserve for outstanding losses and claims)－

795

Income from insurance premiums(Insurance premiums)
Investment income(Gains on trading securities, net)

Other ordinary income
Ordinary Revenues from the Non-life Insurance Business
Underwriting income(Net premiums written)

Investment income

622

628

(Interest income and dividends)

340

336

(Gains on sale of securities)

297

311

(Transfer to interest and dividends on deposits of premiums)

(16)

(19)

Other ordinary income

12

4

10,711

11,856

7,495

8,399

(Interest income on loans)

4,308

4,519

(Interest income and dividends on securities)

Ordinary Revenues from the Banking Business
Interest income

3,169

3,861

Fees and commissions

1,965

2,525

Other operating income

1,052

879

Other ordinary income

198

51

1,607

1,782

1,607

1,782

Other
Other ordinary income(Continued)- 4 -(Millions of yen)

Ordinary Expenses
Ordinary Expenses from the Life Insurance Business

For the three months ended
June 30, 2018

For the three months ended
June 30, 2019¥¥

391,832

379,258

356,460

340,500

100,823

109,439(Insurance claims)

22,75523,320(Annuity payments)

3,168

3,318

(Insurance benefits)

21,952

26,639(Surrender payments)

49,62952,978(Other payments)

1,017

950

202,035

168,995

Insurance claims and other payments

Provision for policy reserves and others
Provision for reserve for outstanding claims

1,001

444

201,033

168,55000Investment expenses

9,307

14,417(Interest expenses)

247

748

(Losses on trading securities, net)

40－

(Losses on sale of securities)

34－(Losses on derivatives, net)

7,855

1,579

Provision for policy reserves
Interest portion of reserve for policyholders’ dividends－

11,039Operating expenses(Foreign exchange losses, net)

35,42537,346

Other ordinary expenses

8,868

10,30225,70327,757

Underwriting expenses

19,187

20,785(Net losses paid)

13,07614,183(Loss adjustment expenses)

1,963

2,088

360

342

Ordinary Expenses from the Non-life Insurance Business(Net commission and brokerage fees)(Provision for reserve for outstanding losses and claims)(Provision for underwriting reserves)
Operating, general and administrative expenses
Other ordinary expenses
Ordinary Expenses from the Banking Business
Interest expenses(Interest expenses on deposits)
Fees and commissions
Other operating expenses
General and administrative expenses
Other ordinary expenses
Other
Other ordinary expenses
Ordinary Profit

15

－

3,771

4,170

6,515

6,971

0

0

7,875

8,919

1,897

2,413

1,511

1,965

1,332

1,630

1

0

4,498

4,871

146

3

1,793

2,080

1,793

2,080

28,82534,396(Continued)- 5 -(Millions of yen)

Extraordinary Gains
Gains on disposal of fixed assets

For the three months ended
June 30, 2018

For the three months ended
June 30, 2019

¥

¥

0

－

0

－

550

658

Losses on disposal of fixed assets

35

42

Impairment losses

71

Provision for reserve under the special laws

506

614

Provision for reserve for price fluctuations

506

614

Provision for Reserve for Policyholders’ Dividends

23

102

Income Before Income Taxes

28,252

33,634

Income Taxes - Current

7,199

10,311

Income Taxes - Deferred

921

(769)

Total Income Taxes

8,121

9,542

Profit20,131

24,092Extraordinary Losses

Profit Attributable to Non-controlling Interests
Profit Attributable to Owners of the Parent

- 6 -

54

78

20,07724,014

(Consolidated Statements of Comprehensive Income)(Millions of yen)

Profit

For the three months ended
June 30, 2018

For the three months ended
June 30, 2019¥¥20,131

24,092Other comprehensive income
Net unrealized gains (losses) on available-for-sale securities, netof taxes(4,515)

1,244

Net deferred gains (losses) on hedging instruments, net of taxes

0

(57)

Remeasurements of defined benefit plans, net of taxes

134

139

Share of other comprehensive income of affiliates accounted forusing equity method－

120(4,380)1,446

Total other comprehensive income
Comprehensive income¥

15,750¥25,539(Details)
Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests- 7 -15,69525,46054

79

3. Note on Going Concern
Not applicable.

4. Material Changes in Stockholders’ Equity
Not applicable.

5. Segment Information(1) Segment information by reportable segment
For the three months ended June 30, 2018
Millions of yen
Non-life
insurancebusiness

Life insurance
business
Ordinary revenues
External customers
Intersegment
Total
Segment profit¥¥

378,636775
379,41222,924¥¥29,701029,702
3,801

Bankingbusiness

¥

¥

Total

10,711
67
10,778
2,232

¥

Other

419,050843
419,893
28,959

¥

¥

¥

1,607
－
1,607
(185)

Total

¥

¥

420,658843
421,501
28,773(Note) “Other” consists of the nursing care business, which is not a reportable segment.
For the three months ended June 30, 2019
Millions of yen
Non-life
insurancebusiness

Life insurance
business
Ordinary revenues
External customers
Intersegment
Total
Segment profit¥¥

368,150692
368,842
28,320¥¥31,865031,865
3,892

Bankingbusiness

¥

¥

Total

11,85675
11,931
2,438

¥

Other

411,872768
412,640
34,651

¥

¥

¥

1,782
－
1,782
(298)

Total

¥

¥

413,654768
414,422
34,352(Note) “Other” consists of the nursing care business and venture capital operations, which is not a reportable segment.
(2) Reconciliations of the totals of reportable segments’ profit to quarterly consolidated statement of income
Millions of yen

Totals of reportable segments

For the three months ended
June 30, 2018

For the three months ended
June 30, 2019

¥

¥

Other

51

Amount not allocated to reportable segments
Ordinary profit in quarterly consolidated
statement of income

28,959(185)¥

28,825(3) Information on impairment loss on fixed assets and goodwill by reportable segment
Not applicable.

- 8 -34,651(298)
43¥

34,396

SFH’s consolidated results* are prepared in accordance with Japanese GAAP. As such, these figures differ in significant respects
from the financial information reported by Sony Corporation, SFH’s parent company, which prepares its financial statements inaccordance with U.S. GAAP.
* SFH’s scope of consolidation includes following companies:
Sony Financial Holdings Inc.
Sony Life Insurance Co. Ltd.
Sony Assurance Inc.
Sony Bank Inc.
Sony Payment Services Inc.
SmartLink Network Hong Kong Limited.
Sony Lifecare Inc.
Lifecare Design Inc.
Proud Life Inc.
Sony Financial Ventures Inc.**
SFV・GB L.P**
Affiliated companies accounted for under the equity method:
AEGON Sony Life Insurance Co., Ltd.
SA Reinsurance Ltd.
** Sony Financial Ventures Inc. is included in the scope of consolidation from the second quarter ended September 30, 2018.
SFV・GB L.P is included in the scope of consolidation from the fourth quarter ended March 31, 2019.

Statements made in this press release concerning the current plans, expectations, strategies and beliefs of the Sony Financial Group.
Any statements contained herein that are not historical facts are forward-looking statements or pro forma information. Forwardlooking statements may include-but are not limited to-words such as “believe,” “anticipate,” “plan,” “strategy,” “expect,”“assume,” “forecast,” “predict,” “propose,” “intend” and “possibility” that describe future operating activities, businessperformance, events or conditions. Forward-looking statements, whether spoken or written, may also be included in other materials
released to the public. These forward-looking statements and pro forma information are based on assumptions, decisions andjudgments made by the management of Sony Financial Group companies, and are based on information that is currently available tothem. As such, they are subject to various risks and uncertainties, and actual business results may vary substantially from theforecasts expressed or implied in forward-looking statements. Consequently, investors are cautioned not to place undue reliance on
forward-looking statements. Sony Financial Group companies are under no obligation to revise forward-looking statements or pro
forma information in light of new information, future events or other findings. The information contained in this press release does notconstitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe to any
securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever inJapan or abroad.

- 9 -II. Attachment
Content of Presentation Material
Consolidated Financial Results for the Three Months Ended June 30, 2019 andSony Life’s MCEV as of June 30, 2019・ Consolidated Operating Results fo r the Three Months Ended June 30, 2019 ………………

3

・ Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2020 ……………

18

・ S on y Life’s MC EV as o f Ju ne 30 , 20 19 ……………………………………………………………

20

・ Appendix ……………………………………………………………………………………………………

22- 10 -

Attachment【Presentation Material】

Consolidated Financial Results
for the Three Months
Ended June 30, 2019
andSony Lifeʼs MCEV
as of June 30, 2019Sony Financial Holdings Inc.
August 8, 2019

AGENDA
Consolidated Operating Results for the Three Months Ended June 30, 2019
(FY19.1Q)

P. 3

Forecast of Consolidated Financial Results for the Fiscal Year Ending
March 31, 2020 (FY2019)P. 18

Sony Lifeʼs MCEV as of June 30, 2019

P. 20

Appendix

P. 22

Disclaimers:
This presentation material contains statements concerning the current plans, expectations, strategies and beliefs of the Sony Financial Group.
Any statements contained herein that are not historical facts are forward-looking statements or pro forma information. Forward-looking
statements may include̶but are not limited to̶words such as “believe,” “anticipate,” “plan,” “strategy,” “expect,” “assume,” “forecast,”“predict,” “propose,” “intend” and “possibility” that describe future operating activities, business performance, events or conditions. Forwardlooking statements, whether spoken or written, may also be included in other materials released to the public. These forward-looking
statements and pro forma information are based on assumptions, decisions and judgments made by the management of Sony Financial Group
companies, and are based on information that is currently available to them. As such, they are subject to various risks and uncertainties, andactual business results may vary substantially from the forecasts expressed or implied in forward-looking statements. Consequently, investors
are cautioned not to place undue reliance on forward-looking statements. Sony Financial Group companies are under no obligation to revise
forward-looking statements or pro forma information in light of new information, future events or other findings. The information contained inthis presentation does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or
subscribe to any securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment
whatsoever in Japan or abroad.
*Unless otherwise indicated, in these materials figures less than the indicated unit have been truncated, while ratios and percentage changes have been rounded.
Also, a “‒” is used where percentage changes exceed 1,000% and in cases where one or both comparisons are negative.
* “Lifeplanner” is a registered trademark of Sony Life.
Copyright © Sony Financial Holdings Inc. All rights reserved.

2

Attachment

Consolidated Operating Results
for the Three Months Ended
June 30, 2019
(FY19.1Q)

Highlights of Consolidated Financial Results
YoY comparison: Decreased in revenues by 1.7%, increased in
profit by 19.3%.
 Ordinary revenues decreased due mainly to lower net gains on
investments in the separate accounts despite higher income frominsurance premiums in the life insurance business. Ordinary
revenues for the non-life insurance and the banking businesses
increased.
 Ordinary profit increased as the life insurance and the banking
businesses delivered higher profit while the non-life insurance
business was essentially flat.
Consolidated
Financial Resultsfor
FY19.1Q

Operating
Performance

All three businesses steadily expanded their business scale.
Sony Lifeʼs new policy amount was down in comparison withcorresponding period of the previous fiscal year, when the newpolicy amount was high as premiums were changed in line withrevisions to the standard mortality tables. The policy amount inforce was up only slightly from March 31, 2019, due in part to
the impact of yen appreciation.

MCEV as of June 30, 2019 was ¥1,651.2 billion, decreased fromMarch 31, 2019, due mainly to a decrease in interest rates inJapanese yen.
 New business value as of FY19.1Q(3M) was ¥17.0 billion,
decreased from FY18.4Q (3M), due mainly to a lower sales of
insurance products for corporate customers.


Economic
Value-based
Profit Indicator

Copyright © Sony Financial Holdings Inc. All rights reserved.

4

Attachment

Highlights of Consolidated Financial Results◆ Ordinary Revenues︓Decreased owing to a decrease in ordinary revenues from the life
insurance business, whereas ordinary revenues from the non-life insurance and thebanking businesses increased.
◆ Ordinary Profit︓Increased as the life insurance and the banking businesses delivered
higher ordinary profit, while ordinary profit from the non-life insurance business was
essentially flat.
Ordinary Profit

Ordinary Revenues
5,000
4,000

420.6

(1.7%)

34.3＋19.3%

413.6

3,000

28.8

300

200

2,000
100
1,000
(JPY bn)
0(JPY bn)0

FY18.1Q

FY18.1Q

FY19.1Q

FY19.1Q

Copyright © Sony Financial Holdings Inc. All rights reserved.

5

Highlights of Operating Performance : Sony Life (Non-consolidated)◆ Ordinary Revenues︓Decreased year on year due to a decrease in net gains on
investments in the separate account, despite higher income from insurance premiums
due mainly to a steady rise in the policy amount in force.
◆ Ordinary Profit︓Rose year on year despite lower gains on sale of securities in thegeneral account, a decrease in acquisition cost in line with lower acquisition of newpolicies, a decline in lower insurance claims and other payments, and an increase inprofit owing to growing policy amount in force.
Ordinary Profit

Ordinary Revenues

379.3(2.8%)

368.8

300＋23.2%

28.6

23.2
200

100
(JPY bn)(JPY bn)0

FY18.1Q

FY19.1Q

FY18.1Q

FY19.1Q

Copyright © Sony Financial Holdings Inc. All rights reserved.

6

Attachment

Operating Performance : Sony Life (Non-consolidated) (1)◆ New Policy Amount︓Decreased due to lower sales of family income insurance.
◆ Annualized Premiums from New Policies︓Decreased due to lower sales of term life
insurance and variable life insurance for corporate customers despite a favorable sales of
U.S. dollar-denominated insurance.
Annualized Premiums from New Policies

Number and Amount of New Policies（Individual life insurance + Individual annuities）（Individual life insurance + Individual annuities）
New policy amount
Number of new policies (Thousands of policies)

142
117

+4.8%

149

Annualized premiums from new policies
Of which, third-sector

240
220

18.7

200
180

1.67

1.11

16.1

160

(27.2%)

1.21

17.5(6.5%)

140
120
100
80
60
40
20
(JPY
bn)

(JPY tn)0

FY17.1Q

FY18.1Q

FY19.1Q

3.1

3.3

FY17.1Q

FY18.1Q(7.8%)

3.1
FY19.1Q

Copyright © Sony Financial Holdings Inc. All rights reserved.

7

Operating Performance : Sony Life (Non-consolidated) (2)
Number and Amount of Policies in Force（Individual life insurance + Individual annuities）
Policy amount in force
Number of policies in force (Millions of policies)

7.62
47.8

7.84

+0.9%

Annualized Premiums from Insurance in Force（Individual life insurance + Individual annuities）

Annualized premiums from insurance in force
Of which, third-sector

7.91
856.3

+0.4%

49.8

49.5

893.2

889.3

+0.5%

(JPY bn)(JPY tn)

Jun. 18

Mar. 19

Jun. 19

193.5

197.5

Jun. 18

Mar. 19

+0.6%

198.6

Jun. 19

Copyright © Sony Financial Holdings Inc. All rights reserved.

8

Attachment

Operating Performance : Sony Life (Non-consolidated) (3)◆ Lapse and Surrender Rate︓Down due to a decrease in cancellation of policies, withcertain customers cancelling existing policies and, taking out new family income
insurance and other policies, as premiums were revised in line with revision to thestandard mortality tables in February 2018.
Lapse and Surrender Rate*（Individual life insurance + Individual annuities）
Annual

1Q

6.06
4.97

1.90

(0.74pt)

1.16

1.00
（%）

FY2017FY2018FY2019*The lapse and surrender rate shows the ratio derived by dividing the amount oflapses and surrenders, not adjusted for policy amount decreases, increases, andreinstatements, by the policy amount in force at the beginning of the fiscal year.

9

Copyright © Sony Financial Holdings Inc. All rights reserved.

Operating Performance : Sony Life (Non-consolidated) (4)◆ Core Profit︓Increased due to a decrease in acquisition cost in line with lower
acquisition of new policies, lower insurance payments and an increase in profit owing to
growing policy amount in force.
Core Profit and Adjusted Core Profit
Core profit

300

26.7

24.9
20.6

◆ Details of core profit

Adjusted core profit+11.4%

29.8
27.2

23.3
+16.4%

FY17.1Q

FY18.1Q

FY19.1Q

4.5

4.2

4.7

Provision of policy reserve forminimum guarantees for variable
life insurance (*)

(0.1)

(0.8)

(2.0)

Adjusted core profit (**)

20.6

23.3

27.2

(JPY bn)
Positive spread*Provision of policy reserves for minimum guarantees for variable life insurance is
described as negative amount.
**Adjusted core profit = (Core profit) ‒ (Positive spread) ‒ (Provision of policy reserves
for minimum guarantees for variable life insurance)(JPY bn)0

FY17.1Q

FY18.1Q

FY19.1Q

Copyright © Sony Financial Holdings Inc. All rights reserved.

10

Attachment

Operating Performance : Sony Life (Non-consolidated) (5)◆ Ordinary Profit︓Increased due to an increase in core profit and an increase in gains onhedges of variable life insurance.
Core Profit and Ordinary Profit
Core profit

Ordinary profit+11.4%

24.9

26.7

29.8

28.6

23.2

FY17.1Q

FY18.1Q

FY19.1Q

Core profit

24.9

26.7

29.8

Capital gains (losses) excluding gains
or losses on hedges (*)

(3.0)

2.6

2.5

Gains (losses) on hedges of variable
life insurance

(4.2)

(3.9)

(1.4)

Provision of contingency reserve (**)

(1.7)

(2.1)

(2.2)

Others

(0.0)

(0.0)

(0.0)

Ordinary profit

15.8

23.2

28.6

(JPY bn)+23.2%

200

15.8(JPY bn)0

FY17.1Q◆ Difference from core profit

FY18.1Q*Capital gains (losses) exclude gains or losses on hedges of variable life insurance.
** Provision of contingency reserve is described as negative amount.

FY19.1Q

Copyright © Sony Financial Holdings Inc. All rights reserved.

11

Operating Performance : Sony Life (Non-consolidated) (6)

Number of Lifeplanner Sales Employees
(19)

5,142

5,135

5,147

5,106

5,164

5,116
(48)

（Number）

Mar. 18

Jun. 18

Sep. 18

Dec. 18

Mar. 19

Jun. 19

Copyright © Sony Financial Holdings Inc. All rights reserved.

12

Attachment

Highlights of Operating Performance : Sony Assurance◆ Ordinary Revenues and Ordinary Profit : Ordinary revenues rose due mainly to anincrease in net premiums written for mainstay automobile insurance. Ordinary profit
was essentially flat.

Ordinary Profit

Ordinary Revenues

29.7

＋7.3%

31.8
3.8

＋2.4%

3.8

(JPY bn)(JPY bn)

FY18.1Q

FY19.1Q

FY18.1Q

FY19.1Q

Copyright © Sony Financial Holdings Inc. All rights reserved.

13

Operating Performance : Sony Assurance (1)◆ Net Premium Written︓Increased due to stable sales of automobile insurance.
Ordinary Profit andAdjusted Ordinary Profit

Net Premium Written
Voluntary automobile insurance
Others27.5

Ordinary profit

Personal accident insurance

Adjusted ordinary profit

30.4

29.0

4.7

＋4.7%

3.8

3.8
3.2

200

4.8

＋2.9%

＋2.4%

2.3
xx
(JPY bn)0

FY17.1Q

FY18.1Q

FY19.1Q*Adjusted ordinary profit = Ordinary profit + Provision for catastrophe reserve(JPY bn)0（Reference) Provision for catastrophe reserve

FY17.1Q

FY18.1Q

FY19.1Q

Note: Most of personal accident insurance is medical insurance.

（JPY bn） FY17.1Q

FY18.1Q

FY19.1Q

0.8

0.9

0.9

Provision for catastrophe reserve*Provision for catastrophe reserve is described as positive amount.
Copyright © Sony Financial Holdings Inc. All rights reserved.

14

Attachment

Operating Performance : Sony Assurance (2)◆ Sum of Two Ratios︓Remained essentially flat due mainly to lower E.I. loss ratio
reflecting lower accident ratio despite an increase in expense ratio.
Sum of Two Ratios（E.I. Loss Ratio ＋ Net Expense Ratio）
E.I. loss ratio

84.5

Net expense ratio

81.2

Combines Ratio（Net Loss ratio＋ Net Expense Ratio）
Net loss ratio

Net expense ratio

76.7

76.1

81.0
(0.2pt)（%）(0.6pt)

56.9

58.6

78.2
＋2.1pt

56.3

50.8

51.8

53.5

＋1.7pt+0.4pt+0.4pt

25.9

24.3

24.7

FY17.1Q

FY18.1Q

FY19.1Q

Notes:
E.I. loss ratio = (Net losses paid + Provision for reserve for outstanding losses
and claims+ Loss adjustment expenses) / Earned premiums x100
[Earthquake insurance and compulsory automobile liability insurance are excluded.]

（%）

25.9

24.3

24.7

FY17.1Q

FY18.1Q

FY19.1Q

Notes:Net loss ratio = (Net losses paid + Loss adjustment expenses) /Net premiums written x100
Net expense ratio = Expenses related to underwriting / Net premiums written x100
Copyright © Sony Financial Holdings Inc. All rights reserved.

15

Highlights of Operating Performance : Sony Bank (Consolidated)◆ Ordinary Revenues and Ordinary Profit︓Rose due mainly to increases in interest income
on investment securities and on loans in line with a growing balance of mortgage loans.

Ordinary Profit

Ordinary Revenues

10.7＋10.7%

11.9

2.2

＋9.3%

2.4

(JPY bn)(JPY bn)

FY18.1Q

FY19.1Q

FY18.1Q

FY19.1Q

Copyright © Sony Financial Holdings Inc. All rights reserved.

16

Attachment

Operating Performance : Sony Bank (Non-consolidated)◆ Customer Assets
・Yen Deposits︓Increased due to an increase in newly accumulated funds via the increased number ofaccounts.
・Foreign Currency Deposits︓Increased due mainly to an increase in U.S. dollar deposits in line withappreciation of Japanese yen.
◆ Loans Outstanding・Expanded due to a steady increase in mortgage loans.
Customer Assets
30,000

Yen deposits

25,0002,343.0
123.7

20,000Foreign currency deposit

419.6

Investment trusts

Mortgage loans

2,526.9

2,483.3
124.3

Loans Outstanding+43.6

1,596.3

123.4

Others

1,782.7

1,744.1
53.7

70.7

+38.6

51.4*

*Corporate loansof ¥33.5 billion,

440.1

Card loans of¥17.9 billion.

404.6

15,0001,690.3

10,0001,814.7

1,939.3

1,731.2

1,525.5

1,963.3

5,000(JPY bn)
0(JPY bn)

Mar. 18

Mar. 19

Jun. 19

Mar. 18

Mar. 19

Jun. 19

Copyright © Sony Financial Holdings Inc. All rights reserved.

Forecast of Consolidated Financial
Results for the Fiscal Year Ending
March 31, 2020
(FY2019)

17

Attachment

Forecast of Consolidated Financial Results for FY2019
Forecast of consolidated financial results for FY2019 is unchanged from the forecast
announced on April 26, 2019.
We maintain our full-year forecasts, taking into consideration the business environment from FY19.2Q
onward, although ordinary revenues were essentially in line with our expectations and ordinary profit
exceeded our expectation in FY19.1Q for all three businesses.
(JPY bn)
Ordinary revenues

FY2018（Actual）

FY2019（Forecast）

Change1,629.1

1,690.0+3.7%

1,464.3

1,520.5+3.8%

Non-life insurance business

115.1

121.2

+5.3%

Banking business

46.0

49.3

+7.1%

93.8

98.0

+4.4%

Life insurance business

78.2

84.2

+7.7%

Non-life insurance business

6.8

7.0

+1.5%

Banking business

9.5

8.6

(10.4%)

62.0

65.0

+4.7%

Life insurance business

Ordinary profit

Profit attributable to ownersof the parents

Note: The above forecast is not included the impact of conversion AEGON Sony Life Insurance and SA Reinsurance into
wholly-owned subsidiaries of Sony Life. The impact on forecast of consolidated financial results is currently under
careful evaluation.
Copyright © Sony Financial Holdings Inc. All rights reserved.

Sony Lifeʼs MCEV
as of June 30, 2019
A part of the calculations of MCEV adopted simplified method for that as of June 30, 2019.
Please keep in mind that the validity of these calculations has not been verified by outside specialists.

19

Attachment

Sony Lifeʼs MCEV
◆ Reasons for Changes in MCEV
・MCEV as of June 30, 2019 decreased ¥69.0 billion from March 31, 2019, due mainly to a decrease ininterest rates in Japanese yen.
◆ New Business Value / New Business Margin
・New business value for FY19.1Q (3M) was ¥17.0 billion, due mainly to a lower sales of insurance
products for corporate customers.
・New business margin for FY19.1Q (3M) was up 0.4pt from FY18.4Q (3M), due to an assumptionchanges and changes in product mix despite a decrease in interest rates.

（JPY bn）

Mar. 19

MCEV

Jun. 19

ChangefromMar. 19

1,720.2

1,651.2(69.0)

Adjusted net worth

2,195.7

2,432.0+236.2

Value of existing business(475.5)(780.7)(305.2)（JPY bn）

FY18.4Q(3M)

FY19.1Q(3M)

New business value

23.1

17.0

New business margin

5.0%

5.4%

Note: Calculated MCEV as of June 30, 2019 by using mainly updated economic assumptions and lapse and surrender rate from March 31, 2019.
*Please refer to page 39-42 for trend on bond yields and yield curves.

Copyright © Sony Financial Holdings Inc. All rights reserved.

21◆Sony Financial Group
Detail of Consolidated Adjusted ROE
Detail of Consolidated Adjusted Profit andConsolidated Adjusted Capital
Calculation of Consolidated Adjusted ROE
Update of Major KPIs
Financial Soundness
Results of Cross-selling

Appendix◆Sony Life
Product Portfolio
Asset Management
General Account Assets
Interest Income and Dividends (Details)
Capital Gains (Losses)
Quarterly Trend on New Policy Amount
Quarterly Trend on Annualized Premiums from New Policies
Quarterly Trend on New Business Value
ESR
Operating Performance : AEGON Sony Life Insurance
Trend on JGB Yields (Par rate)
Trend on Risk-free Rate (Japanese yen/Par rate)
Trend on U.S. Dollar Bonds Yields (Par rate)
Trend on Risk-free Rate (U.S. Dollar /Par rate)◆Financial Results of Each Group Company（Summary Financial Statements, etc.）
Consolidated/Sony Life/Sony Assurance/Sony BankAttachment

Detail of Consolidated Adjusted ROE

FY2018(12M)

FY18.1Q(3M)

FY19.1Q(3M)

Consolidated Adjusted ROE

6.7%

1.7%

1.4%

(Sony Life) Core ROEV

6.4%

1.6%

1.2%

(Sony Assurance) Adjusted ROE

15.2％

7.0%

6.5%

(Sony Bank) ROE

7.3%

1.7%

1.8%

Copyright © Sony Financial Holdings Inc. All rights reserved.

23

Detail of Consolidated Adjusted Profit andConsolidated Adjusted Capital◆ Adjusted capital (Denominator）◆ Adjusted profit（Numerator)
Sony Financial Group（consolidated）

FY2018

FY18.1Q

FY19.1Q

120.4

30.3

25.9

Sony Life(non-consolidated)

FY2018Fy18.1Q

FY19.1Q

New business value *

91.3

21.9

17.0

Expected existing business
contribution *

15.0

3.5

3.7

Adjusted profit

106.4

25.5

20.8

Sony Assurance

FY2018

FY18.1Q

FY19.1Q

Net income

4.9

2.7

2.7

Provision amount forcatastrophe reserve (after tax)

2.6

0.6

0.7

Provision amount for reservefor price fluctuations(after tax)

0.0

0.0

0.0

Adjusted profit

7.6

3.3

3.4

Sony Bank(consolidated)

FY2018

FY18.1Q

FY19.1Q

6.3

1.4

1.6

Adjusted profit(consolidated)

Profit attributable to ownersof the parent

Sony Financial Group（consolidated）

FY2018

FY18.1Q

FY19.1Q

Adjusted capital(consolidated)

1,801.8

1,735.8

1,811.8

Sony Life(non-consolidated)

FY2018

FY18.1Q

FY19.1Q①MCEV as of the beginning of
the fiscal year

1,633.1

1,633.1

1,720.2

26.2

26.2

32.2

③MCEV as of the end of theperiod *1,720.2

1,593.4

1,651.2

Adjusted capital（①−②＋③）/２

1,663.5

1,600.2

1,669.6

Sony Assurance②Dividends paid

FY2018

FY18.1Q

FY19.1Q①Net assets

34.7

33.1

35.1

②Catastrophe reserve

17.7

15.7

18.4

③Reserve for price fluctuations

0.1

0.1

0.1

Adjusted capital （①＋②＋③）

50.5

48.7

53.2

FY2018

FY18.1Q

FY19.1Q

87.6

86.9

88.9

Sony Bank(consolidated)
Adjusted capital（The averageamount of net assets during
the period）* Please keep in mind that the validity of these calculations has not been verified by outside specialists for the figures for FY18.1Q and FY19.1Q.
Copyright © Sony Financial Holdings Inc. All rights reserved.

24

Attachment

Calculation of Consolidated Adjusted ROE
Since each company of Sony Financial Group differs by industry such as insurance and banking,each group company calculate its “Adjusted ROE” based on adjusted profit and adjusted capital
to realize its corporate value and capital efficiency.

Sony Financial Group *Sony Life
Core ROEVSony Assurance
Adjusted ROE

Numerator(Adjusted
profit)New business value +Expected existing business
contribution

Net income (loss) + Provision
amount for catastrophe
reserve and its provision
amount for reserve for pricefluctuations, in each case②
after taxes＋

Denominator(Adjusted
capital)MCEV as of the beginning of
the fiscal year less dividends
paid plus MCEV as of the endof the fiscal year, divided bytwo.

The average amount of net
assets plus the sum ofcatastrophe reserve and its
reserve for price fluctuations
during the fiscal year,
in each case after taxes ⑤

＋

＋

①

＋

④

Sony Bank
ROE
Profit (loss) attributable toowners of the parent③

The average amount of net
assets during the fiscal year⑥

* Consolidated Adjusted ROE = Consolidated Adjusted Profit divided by Consolidated Adjusted Capital
Consolidated Adjusted Profit ＝ ①＋②＋③
Consolidated Adjusted Capital ＝ ④＋⑤＋⑥
Copyright © Sony Financial Holdings Inc. All rights reserved.

25

Update of Major KPIs

Sony Life
Policy Amount in Force *1
47.8

49.5

49.8

（JPY tn）
Jun. 18

27.2

28.8

Jun. 19

FY17.1Q

Retail Balance*2

30.3（JPY bn）
Mar. 19

Sony Bank

Sony Assurance
Direct Premiums Written
3.9

4.2

4.2

Mar. 19

Jun. 19（JPY tn）
FY18.1Q

FY19.1Q

Jun. 18*1 Individual Life Insurance + Individual Annuities*2 Sum of yen deposits, foreign currency deposits, investment trusts, financial products intermediary services, mediated discretionary investment
contracts and personal loans
Copyright © Sony Financial Holdings Inc. All rights reserved.

26

Attachment

Financial Soundness

Change from
Mar. 19

Jun. 18

Mar. 19

Jun. 19

2,648.6%

2,590.5%

2,612.5%+22.0pt

Sony Assurance
Solvency margin ratio

828.4%

813.0%

872.9%+59.9pt

Sony Bank (non-consolidated)
Capital adequacy ratio (domestic standard)

10.42%

9.58%

9.54％

(0.04pt)（%）

Sony Life (non-consolidated)
Solvency margin ratio

Copyright © Sony Financial Holdings Inc. All rights reserved.

27

Results of Cross-selling Sony Bankʼs Mortgage Loans through Sony Life
Sony Life accounts for 11% of the amount of new mortgage loans for FY19.1Q (3M)
Sony Life accounts for 18% of the balance of mortgage loans as of June 30, 2019※Sony Life started handling banking agency business in January 2008.

 Sony Assuranceʼs Automobile Insurance Sold by Sony Life
Sony Life accounts for 6% of new automobile policies for FY19.1Q (3M)
※Sony Life started handling automobile insurance in May 2001.

Copyright © Sony Financial Holdings Inc. All rights reserved.

28

Attachment

Sony Lifeʼs Product Portfolio(Annualized Premiums from New Policies by Product)
Yen whole
life 3%

FY18.1Q（3M）¥18.7 billion

Savings typeproducts
30%

U.S. dollardenominatedwhole life
14%

FY19.1Q（3M）

U.S. dollar-denominatedsingle- premium whole
life insurance 8%¥17.5 billion¥87.9
billionProtection-type（term-life）
45％

Yen whole
life 3%
U.S. dollardenominatedwhole life 18%

Yen whole U.S. dollarlife 3%
denominatedwhole life13%

FY18（12M）¥87.9 billion

Savings typeproducts
27%

Savings typeproducts
41%

U.S. dollar-denominatedsingle- premium whole
life insurance 12%

Protection-type（term-life）
26％

U.S. dollar-denominatedsingle- premium whole
life insurance 7%

Protection-type（term-life）
50％

Note: Savings type products = Endowment・Annuities・Educational endowment insurance

Copyright © Sony Financial Holdings Inc. All rights reserved.

29

Sony Lifeʼs Asset Management(Purchase Securities in the General Account)
Japanesestocks1.0%

FY18.1Q（3M）

FY19.1Q（3M）
Foreign bonds
26.2%

JGBs
43.9%

Japanesestocks0.1%

Japanese
corporate
bonds
28.9%

Japanesestocks0.2%

FY18（12M）

Foreign bonds
63.7%
社債
25.9%

Foreign bonds
23.5%

Japanese
corporate
bonds
12.7%

JGBs
29.5%

JGBs
63.6%

Japanese corporate
bonds
6.6%

Notes:
1. Japanese corporate bonds include FILP agency bonds and Government-guaranteed bonds.
2. The graphs above are asset allocation for the relevant period. Total invested amount for the relevant period as 100%.
(excluding, investment in subsidiaries and affiliates, and strategic investments)
Copyright © Sony Financial Holdings Inc. All rights reserved.

30

Attachment

Sony Lifeʼs General Account Assets(Detail of General Account Assets)◆ Asset management review
We have continued to accumulate ultralong-term bonds to match the liability characteristics of insurance
policies with long-term maturities with the aim of reducing interest rate risk.
Mar. 19

Jun. 19◆ Bond duration

Amount%Amount%Japanese bonds(including JGBs)

7,745.3

85.3%

7,848.4

83.2%

Japanese stocks

28.6

0.3%

28.6

0.3%

Foreign bonds

542.1

6.0%

710.5

7.5%

Foreign stocks

22.5

0.2%

20.5

0.2%

◆ Investment in the money held in trustis mainly into Japanese bonds.

Money held in trust

269.3

3.0%

267.9

2.8%

Policy loans

198.3

2.2%

200.6

2.1%

Real estate*

90.8

1.0%

90.5

1.0%

◆ The holding ratio on the real status ofJapanese bonds including those invested
in money held in trust in the generalaccount :Cash and call loans

61.9

0.7%

126.4

1.3%

Others

120.2

1.3%

134.9

1.4%

9,079.4

100.0%

9,428.6

100.0%（JPY bn）

Total

Mar. 18 : 21.4 years
Mar. 19 : 21.8 years
Jun. 19 : 21.9 years

Mar. 18 : 89.5%
Mar. 19 : 88.3%
Jun. 19 : 86.1%*Real estate is the total of land, buildings, and construction in progress.
Copyright © Sony Financial Holdings Inc. All rights reserved.

31

Sony Lifeʼs Interest Income and Dividends (Details)(JPY mn)

FY18.1Q

ChangeFY19.1Q

32,01033,011+3.1%

Japanese bonds(including JGBs)

100

81

(19.0%)

Japanese stocks

4,053

6,141

+51.5%

Foreign securities277

ー(100.0%)

Other securities

1,685

1,736

+3.0%

Loans

2,151

2,422

+12.6%

139109(21.8%)

40,41943,501+7.6%

Cash and deposits

Real estate
OthersCopyright © Sony Financial Holdings Inc. All rights reserved.

32

Attachment

Sony Lifeʼs Capital Gains (Losses)（JPY mn）

FY18.1Q

FY19.1Q

16,85012,643Losses on trading securities, net

42−

Losses on sale of securities…(3)

34

−

7,855

1,579

3,901

1,781

874

(222)

2,974

7

−

11,039−11,365

Capital losses

Losses on derivatives, net
Losses on hedges of variable life
insurance…(1)Losses on hedges of available-for-salesecurities…(2)Losses on U.S. dollar-denominatedinsurance…(4)Foreign exchange losses, net
Losses on U.S. dollar-denominatedinsurance…(4)Losses on hedges of variable life
insurance…(1)−Other capital losses

(333)

8,917

Losses on U.S. dollar-denominatedinsurance（the provision of policy
reserves for foreign exchange
fluctuations)…(4)25（JPY mn）

FY18.1Q

Capital gains

FY19.1Q

15,552

13,741

Gains on sale of securities…(3)

3,265

1,238

Foreign exchange gains, net

12,287−

12,203−−

12,497−

12,249(1,297)

1,097

Gains on U.S. dollar- denominatedinsurance (foreign exchange gains inseparate account）…(4)Other capital gains
Gains on U.S. dollar-denominatedinsurance（the reversal of policy
reserves for foreign exchange
fluctuations)…(4)Net capital gains (losses)

Note: The figures of income (losses) from trading securities, net, gains (losses)
on derivatives and foreign exchange gains (losses), net were recorded
after offsetting gains and losses of each item.

−

8,917

●Capital Gains (Losses) on Main Items, Net Amounts（JPY mn）

FY18.1Q(1) Gains (Losses）on hedges of variable life
insurance

FY19.1Q(3,901)(1,447)(2) Gains (losses）on hedges ofavailable-for-sale securities

(874)

222

(3) Gains (losses) on sale of securities

3,230

1,238

311

1,124

(4) Gains (losses) on U.S. dollardenominated insurance

Copyright © Sony Financial Holdings Inc. All rights reserved.

33

Sony Lifeʼs Quarterly Trend on New Policy Amount

1,842.4

1,674.7
1,485.0

1,115.8

1,114.8

1,435.5

1,555.1

1,214.7

1,219.1（JPY bn）

0.0
FY17.1Q

FY17.2Q

FY17.3Q

FY17.4Q

FY18.1Q

FY18.2Q

FY18.3Q

FY18.4Q

FY19.1Q

Note : Individual Life Insurance + Individual Annuities

Copyright © Sony Financial Holdings Inc. All rights reserved.

34

Attachment

Sony Lifeʼs Quarterly Trend on
Annualized Premiums from New Policies
Annualized premiums from new policies

Of which, third-sector

30.9

19.5

21.1

18.7

19.2

18.9

17.5

16.1

16.2

3.1

2.8

3.3

3.6

3.3

3.9

3.8

4.0

3.1

FY17.1Q

FY17.2Q

FY17.3Q

FY17.4Q

FY18.1Q

FY18.2Q

FY18.3Q

FY18.4Q

FY19.1Q（JPY bn）

Note : Individual Life Insurance + Individual Annuities

Copyright © Sony Financial Holdings Inc. All rights reserved.

35

Sony Lifeʼs Quarterly Trend on New Business Value

19.8

21.1

21.9

22.6

23.6

23.1

17.1

17.0

12.2

（JPY bn）

FY17.1Q

FY17.2Q

FY17.3Q

FY17.4Q

FY18.1Q

FY18.2Q

FY18.3Q

FY18.4Q

FY19.1Q

Note: New business value is calculated accumulating new business value for each month based on economic assumptions at the end of each month.
The figures for FY2018 onward reflect the revision in the insurance risk measurement method and others which revised on March 31, 2018.
Copyright © Sony Financial Holdings Inc. All rights reserved.

36

Attachment

Sony Lifeʼs ESR
 The risk amount based on economic value as of June 30, 2019 was ¥758.5 billion, up ¥16.1 billion from March 31, 2019,
resulting from a decrease in interest rate risk, offsets by an increase in insurance risk due to a drop in interest rates.
 ESR as of June 30, 2019 was 220%, down 14pt from March 31, 2019 due mainly to a decrease in MCEV.
（JPY bn）

Mar. 19

ChangeJun. 19

Insurance risk

547.3

586.2

+38.8

Market-related risk

332.5

299.9

(32.6)

202.1

159.2

(42.8)

Operational risk

33.4

35.0

+1.6

Counter party risk

3.0

4.1

+1.0

(174.0)(166.8)

+7.2

742.3

758.5

+16.1

Of which, interest rate risk

Variance effect
The risk amount based on
economic value（JPY bn）

Mar. 19MCEV + Frictional costs

ChangeJun. 19

1,743.7

1,672.2(71.5)

235%

220%(14pt)

ESR

Notes:
1. The risk amount based on economic value refers to the total amount of Sony Lifeʼs risks comprehensively examined by a market consistent approach, including
insurance risk and market-related risk and others.
2. The solvency risk capital on an economic value basis is calibrated at VaR (99.5) over one year and based on the internal model.
3. Risk amount excluding the variance effect within market-related risk.
4. ESR=(MCEV + Frictional costs) / Risk amount based on economic value.
Copyright © Sony Financial Holdings Inc. All rights reserved.

37

Operating Performance : AEGON Sony Life Insurance◆AEGON Sony Life Insuranceʼs new policy amount and policy amount in force

Number and Amount of New Policies*

Number and Amount of Policies in Force**

New policy amount

Policy amount in force

Number of new policies (Thousands of policies)

Number of policies in force (Thousands of policies)

11.4

10.1

2.5

521.9

522.7

524.1

93.2

94.5

95.5

Jun. 18

Mar. 19

Jun. 19

7.1
1.7

1.5

（JPY bn）（JPY bn）

FY17.1Q

FY18.1Q

FY19.1Q*Amounts for FY17.1Q and FY18.1Q are individual annuities while amounts for
FY19.1Q are total of individual insurance and individual annuities◆Net income (losses) for AEGON Sony Life and SA Reinsurance（JPY bn）

FY18.1Q

FY19.1Q** Amounts for as of Jun. 2018 are individual annuities while amounts forMar. 2019 and Jun. 2019 are total of individual insurance and individual
annuities

ChangeAEGON Sony Life

(0.8)

(0.4)

+0.4

SA Reinsurance

0.3

0.0

(0.2)

AEGON Sony Life Insurance and SA Reinsurance are equity method companies, 50-50 joint venture established by Sony Life and AEGON Group.
SA Reinsurance prepares its financial statements in accordance with U.S. GAAP. 50% of the net income (losses) for AEGON Sony Life Insurance andSA Reinsurance are recognized as investment profit (losses) on equity method in the SFHʼs consolidated net income.

Copyright © Sony Financial Holdings Inc. All rights reserved.

38

Attachment

Trend on JGB Yields (Par rate)
0.80%

10 years
20 years
30 years

0.60%

40 years
0.40%

0.20%

0.00%

(0.20%)△0.20%
Mar. 19

Apr. 19
Mar. 19

May. 19
Apr. 19

Jun. 19

May 19Jun. 19

10 years(0.08%)(0.05%)(0.09%)(0.16%)

20 years

0.34%

0.37%

0.30%

0.23%

30 years

0.51%

0.56%

0.46%

0.36%

40 years

0.58%

0.63%

0.50%

0.41%

Copyright © Sony Financial Holdings Inc. All rights reserved.

39

Trend on Risk-free Rate (Japanese yen/Par rate)
1.60%
1.40%
1.20%

Convergence
period: 20 year

Mar. 19
Jun. 19

1.00%
0.80%
0.60%
0.40%
0.20%
0.00%
△0.20%(0.20%)△0.40%(0.40%)
1 yearLast liquid point:
40 year

10

20

30

40

50

60

70

80

years

years

years

years

years

years

years

years

*For above risk-free rate, we employ the Smith-Wilson method for extrapolation so that the 60-year forward rate will coverage on the UFR (3.5%).
Copyright © Sony Financial Holdings Inc. All rights reserved.

40

Attachment

Trend on U.S. Dollar Bonds Yields (Par rate)
3.20%

10 years
20 years

3.00%

30 years

2.80%
2.60%
2.40%
2.20%
2.00%
1.80%
1.60%
Mar. 19

Apr. 19
Mar. 19

May. 19
Apr. 19

Jun. 19

May 19Jun. 19

10 years

2.41%

2.50%

2.13%

2.01%

20 years

2.63%

2.74%

2.38%

2.31%

30 years

2.82%

2.93%

2.57%

2.53%

Copyright © Sony Financial Holdings Inc. All rights reserved.

41

Trend on Risk-free Rate (U.S. Dollar /Par rate)
3.10%

Convergence
period: 30 year

Mar.192.90%

Jun. 19

2.70%
2.50%
2.30%
2.10%
1.90%
1.70%
1.50%

Last liquid point:
30 year1 year

10

20

30

40

50

60

70

80

years

years

years

years

years

years

years

years

*For above risk-free rate, we employ the Smith-Wilson method for extrapolation so that the 60-year forward rate will coverage on the UFR (3.5%).
Copyright © Sony Financial Holdings Inc. All rights reserved.

42

Attachment

Consolidated︓Summary Financial Statements
FY18.1Q

FY19.1Q

379.4

368.8

(10.5)(2.8%)

Ordinary profit

22.9

28.3

+5.3

+23.5%

Ordinary revenues

29.7

31.8

+2.1

+7.3%

3.8

3.8

+0.0

+2.4%

10.7

11.9

+1.1

+10.7%

Ordinary profit

2.2

2.4

+0.2

+9.2%

Ordinary revenues

0.7

1.0

+0.2

+32.7%

Ordinary profit

(0.1)

(0.2)

(0.1)

ー

Ordinary revenues

420.6

413.6

(7.0)

(1.7%)

Ordinary profit

28.8

34.3

+5.5

+19.3%

Profit attributableto owners of theparent

20.0

24.0

+3.9

+19.6％（JPY bn）
Life insurance
business
Non-life
insurancebusiness

Ordinary revenues

Ordinary profit
Ordinary revenues

Bankingbusiness
Intersegment
adjustments*

Consolidated

Change*“Intersegment adjustments” is from SFH, the nursing care business, and the venture capital business.
Sony Financial Ventures Inc. and SFV・GB L.P. are included in the scope of consolidation from FY18.2Q and
FY18.4Q, respectively.
(Note) Comprehensive income : FY18.1Q: ¥15.7 billion, FY19.1Q: ¥25.5 billion（JPY bn）
Consolidated

Mar. 19

Change from Mar. 19

656.8

655.2

(1.6)

(0.2%)

13,468.2

13,989.3+521.1+3.9%

Net assets
Total assets

Jun. 19

Copyright © Sony Financial Holdings Inc. All rights reserved.

43

Sony Life︓Summary Financial Statements（Non-consolidated）
FY19.1Q

379.3

368.8

(10.5)(2.8%)

Income from insurance
premiums

269.5

301.4

+31.8

+11.8%

Investment income

106.9

64.3

(42.6)(39.8%)

Interest income
and dividends

40.4

43.5

+3.0

+7.6%

Gains on sale ofsecurities

3.2

1.2

(2.0)

(62.1%)

Foreign exchange
gains, net

12.2

ー

(12.2)(100.0%)Gains on separate
accounts, net

49.8

18.4

(31.4)(63.0%)

356.0

340.1

(15.9)(4.5%)

Insurance claims andother payments

100.8

109.4

+8.6

+8.5%

Provision for policy
reserves and others

202.0

168.9

(33.0)(16.4%)

Investment expenses

9.3

14.4

+5.1

+54.9%

Losses onderivatives, net

7.8

1.5

(6.2)

(79.9%)

Foreign exchange
losses, net

ー

11.0

+11.0

ー

Operating expenses

35.4

37.3

+1.9

+5.4%

Ordinary profit

23.2

28.6

+5.3

+23.2%Net income

16.3

20.0

+3.6

+22.2%

Ordinary revenues

Ordinary expenses

Mar. 19

Jun. 19

Securities

9,523.8

9,862.6+338.8+3.6%

Policy reserves

9,268.4

9,436.9+168.5

+1.8%

513.9

502.7

(11.1)(2.2%)

122.7

123.7

+1.0

+0.8%

10,380.1

10,767.6+387.5+3.7%

1,300.7

1,338.9

+38.2

+2.9%

FY18.1Q

FY19.1Q

47.7

31.4

（JPY bn）

FY18.1Q（JPY bn）

ChangeNet assets
Net unrealized gains
on other securities
Total assets
Separate accountassets（JPY bn）
Gains from investment,net (General account)

Change from Mar. 19

Change from Mar. 19(16.3)(34.2%)

Copyright © Sony Financial Holdings Inc. All rights reserved.

44

Attachment

Sony Assurance︓Summary Financial Statements(Underwriting Performance by Type of Policy)

Direct Premiums Written *Medical insurance is included in personal accident.
（JPY mn）

FY18.1Q

FY19.1Q

Ordinary revenues

29.7

31.8

+2.1

+7.3%

Underwriting
income

29.0

31.2

+2.1

+7.5%

Investment
income

0.6

0.6

+0.0

+0.9%

Ordinary expenses

25.9

27.9

+2.0

+8.0%

（JPY bn）

Underwriting
expenses

19.3

20.9

+1.6

+8.3%

Operating generaland administrative
expenses

6.5

7.0

+0.4

+7.0%

3.8

3.8

+0.0

+2.4%

3.1

3.2

＋0.0

+3.0%

2.7

2.7

+0.0

+1.8%

Ordinary profit
Underwriting
incomeNet income

FY18.1Q

FY19.1Q

Fire

54

374

+582.7%

MarineーーーChangeChangePersonal accident

2,163

2,277

+5.3%

Voluntary automobile

26,583

27,695

＋4.2%

ー

ー

ー

28,80230,347+5.4%

FY18.1Q

FY19.1Q

Change

Fire

4

197

ー

MarineーーーCompulsory
automobile liability
Total

Net Premiums Written（JPY mn）

Personal accident

2,221

2,244

+1.0%

Voluntary automobile

26,524

27,621

+4.1%

300

354

+18.1%

29,05130,418+4.7%

FY18.1Q

FY19.1Q

Compulsory
automobile liability
Total

Net losses paid

（JPY bn）

Underwriting
reserves

Mar. 19

Jun. 19127.8（JPY mn）

Change from
Mar. 19

131.9

+4.1

+3.3%

Net assets

34.7

35.1

+0.3

+1.1%

Total assets

219.6

220.0

+0.4

+0.2%

ChangeFire13+96.6％

Marine1(3)ーPersonal accident
Voluntary automobile

691

763

+10.5%

12,052

13,097

+8.7%

329

323

(1.6%)

13,07614,183+8.5%

Compulsory
automobile liability
Total

Copyright © Sony Financial Holdings Inc. All rights reserved.

45

Sony Bank︓Summary Financial Statements(Balance of Securities by Credit Rating)◆ Consolidated（JPY bn）

FY18.1Q

FY19.1Q

ChangeOrdinary revenues

10.7

11.9

+1.1

+10.7%

Ordinary profit

2.2

2.4

+0.2

+9.3%

Profit attributable toowners of the parent

1.4

1.6

+0.1

+8.9%

◆ Non-consolidated
FY18.1Q

FY19.1Q

Ordinary revenues

9.7

10.7

+1.0

+10.8%

Gross operating profit

5.7

6.2

+0.4

+8.4%

Net interest income

5.5

5.9

+0.3

+6.9%

(0.8)

(0.6)

+0.2

ー

Net other operating
income

1.0

0.8

(0.1)

(16.4%)

General andadministrative expenses

3.7

4.1

+0.3

+9.0%

Net operating profit

1.9

2.1

+0.2

+10.6%

Ordinary profit

2.0

2.1

+0.1

+6.9%

Net income

1.4

1.5

+0.0

+7.1%

（JPY bn）

Net fees andCommissions（JPY bn）
Net assets
Net unrealized gains
on other securities,
net of taxes
Total assets

Mar. 19

Jun. 19

Change◆ Balance of Securities by Credit Rating（Non-consolidated）（JPY bn）
AAA

Mar. 19

Jun. 19

296.6

321.3

Change from
Mar. 19
+24.6

+8.3%

AA

77.3

74.4

(2.8)

(3.7%)

A

288.0

298.8

+10.7

+3.7%

BBB

24.4

23.6

(0.7)

(3.1%)

Others

10.0

9.8

(0.1)

(1.3%)

Total

696.4

728.1

+31.7

+4.6%

Change from
Mar. 19

87.2

85.8

(1.4)

(1.7%)

3.9

4.0

+0.1

+2.7%

2,860.9

2,987.7+126.8+4.4%

Copyright © Sony Financial Holdings Inc. All rights reserved.

46

Attachment

Sony Bank︓Operating Performance(On Managerial Accounting Basis)◆ On Managerial Accounting Basis・ Net interest income︓Increased due to an increase of interest income in investment securities and on loans in line witha growing balance of mortgage loans.
・ Net fees and commissions︓Improved due to an increase of mortgage loansʼ fees and commissions＜Reference＞

FY18.1Q

FY19.1Q

5.7

6.2

+0.4

+8.4％

6.2

6.4

+0.2

+3.4％

(0.7)

(0.4)

+0.2

ー

Net other operating
income*3

0.2

0.2

(0.0)

(0.5％)

Gross operating profit(core profit)(A) ＝①＋②

5.4

5.9

+0.4

+8.9％

Operating expenses andother Expenses ③

3.8

4.1

+0.2

+7.3％

Net operating profit(core profit) ＝(A)−③

1.6

1.8

+0.2

+12.8％（JPY bn）
Gross operating profit
Net interest income*1 ①
Net fees andcommissions*2②

ChangeYield on investment■Core profit
Profits and losses exclude net other operating income, which includes those on bond andderivative dealing transactions, and stands for Sony Bankʼs basic profits.

Yield on financing

0.93

0.23

Interest spread

1.20

1.17

■Managerial accounting basis
The following adjustments are made to the figures on a financial account for profits andlosses more appropriately.
*1: Net interest income: Includes profits and losses associated with fund investment
recorded in net other operating income, including gains or losses from currency swap
transactions.
*2: Net fees and commissions: Includes profits and losses for customer dealings in foreign
currency transactions recorded in net other operating income.
*3: Net other operating income: After the above adjustments (*1 and *2), mainly consistsof profits and losses for bond and derivative dealing transactions.

Interest Spread(Managerial Accounting Basis）(0.04pt)

0.89

0.31

（%）

FY18.1Q

FY19.1Q

Note: Interest spread=(Yield on investment)-(Yield on financing)
Copyright © Sony Financial Holdings Inc. All rights reserved.

Contact︓
Investor Relations Department
Sony Financial Holdings Inc.
TEL︓+81-3-5290-6500

47