February 14, 2018
Sony Financial Holdings Inc.

Summary Information on Sony Assurance’s Financial Results
for the Nine Months Ended December 31, 2017
<Contents>
1. Balance Sheets

P.2

2. Statements of Income

P.3

3. Financial Summary (Year-on-Year Comparison)

P.4

4. Premiums and Losses Paid by Type of Policy

P.5

5. Non-consolidated Solvency Margin Ratio

P.6

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, 2017

As of December 31, 2017

Assets:Cash and deposits

8,951

14,918

137,553

143,230

Tangible fixed assets

3,399

2,614

Intangible fixed assets

6,529

6,202

Other assets

22,125

20,424

Deferred tax assets

7,978

8,784

186,537

196,175

144,514

155,805

Reserve for outstanding losses and claims

38,34040,864

Underwriting reserves

106,173

114,940

9,877

6,396

Income taxes payable

1,746

1,120

Others

8,130

5,275

Reserve for employees’ retirement benefits

1,440

1,564

Reserve for directors’ retirement benefits36－

Reserve for employees’ bonuses

1,082

524

Reserve under the special laws

177

199

Reserve for price fluctuations

177

199

157,128

164,490

Common stock

20,00020,000Capital surplus

3,389

3,389

Retained earnings

4,808

6,710

Total shareholders’ equity

28,19730,099Net unrealized gains (losses) on other securities, netof taxes

1,211

1,585

Total valuation and translation adjustments

1,211

1,585

29,40931,685186,537

196,175

Securities

Total Assets
Liabilities:
Underwriting reserves

Other liabilities

Total Liabilities
Net Assets:
Shareholders’ equityValuation and translation adjustments

Total Net Assets
Total Liabilities and Net Assets

22. Statements of Income(Millions of yen)
For the nine months ended
December 31, 2016
Ordinary Revenues

For the nine months ended
December 31, 201775,94482,422

74,32381,062

74,27381,016

50

46

1,595

1,330

(Interest income and dividends)

994

1,001

(Gains on sale of securities)

650

375

(Transfer to interest and dividends on deposits of premiums)

(50)

(46)

25

28

70,94877,383

Underwriting expenses

52,55656,740(Net losses paid)

36,941

38,534(Loss adjustment expenses)

5,519

5,574

(Net commissions and brokerage fees)

1,212

1,340

(Provision for reserve for outstanding losses and claims)

1,503

2,524

(Provision for underwriting reserves)

7,378

8,767

18,38820,641

4

1

4,995

5,039

Extraordinary Gains－－

Extraordinary Losses

2023

Losses on sale or disposal of fixed assets

01

Provision for reserve under the special laws

20

21

20

21

Income Before Income Taxes

4,975

5,015

Income Taxes –Current

1,780

2,306

Income Taxes –Deferred(431)(950)

Total Income Taxes

1,348

1,355

Net Income

3,626

3,659

Underwriting income(Net premiums written)(Interest and dividends on deposits of premiums)
Investment income

Other ordinary income
Ordinary Expenses

Operating, general and administrative expenses
Other ordinary expenses
Ordinary Profit

Provision for reserve for price fluctuations33. Financial Summary (Year-on-Year Comparison)(Millions of yen)
For the nine months
ended
December 31, 2016

For the nine months
ended
December 31, 2017

Change(Amount)

Change(%)

Gross direct premiums written

73,31780,043

6,726

9.2(Direct premiums written)

73,31780,043

6,726

9.2

74,32381,062

6,739

9.1

74,27381,016

6,743

9.1

Underwriting expenses

52,55656,7404,184

8.0(Net losses paid)

36,941

38,5341,593

4.3(Loss adjustment expenses)

5,519

5,574

55

1.0

(Net commissions and brokerage fees)

1,212

1,340

127

10.5

1,595

1,330(264)(16.6)(Interest income and dividends)

994

1,001

7

0.7

(Gains on sale of securities)

650

375

(275)

(42.4)－－－－

Operating, general and administrative expenses

18,38820,641

2,253

12.3

(Operating, general and administrative
expenses related to underwriting)

18,346

20,594

2,247

12.2

20

276

31.8

4,995

5,039

430.9

3,420

3,727

306

9.0

Extraordinary Gains－－－－

Extraordinary Losses

2023

2

14.2

Extraordinary gains (losses), net

(20)

(23)

(2)

－

Income Before Income Taxes

4,975

5,015

400.8

Income Taxes —Current

1,780

2,306

526

29.6

Income Taxes —Deferred

(431)

(950)

(519)

－

Total Income Taxes

1,348

1,355

60.5

Net Income

3,626

3,659

330.9

Net loss ratio

57.2%

54.4%

Net expense ratio

26.3%

27.1%

Underwriting income(Net premiums written)

Ordinary Income (expenses)

Investment income

Investment expenses

Other ordinary income, net
Ordinary profit(Underwriting profit)
Extraordinary
Gains (losses)

Ratios

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. Ratios are calculated as follows:
Net loss ratio=(Net losses paid + Loss adjustment expenses) / Net premiums written x 100
Net expense ratio=(Net commissions and brokerage fees + Operating, general and administrative expenses related to underwriting) / Net premium written x 100

4%4. Premiums and Losses Paid by Type of Policy
Direct Premiums Written(Millions of yen)
For the nine months ended
December 31, 2016
Amount

For the nine months ended
December 31, 2017

YoY Change

Composition%

AmountComposition%

YoY Change%%

Fire

1700.2(34.4)

148

0.2

Marine－－－－－－

Personal accident6,583

9.0

1.3

6,515

8.1

(1.0)

Voluntary automobile

66,56390.8

3.9

73,379

91.7

10.2

－

－－－－

－

73,317100.0

3.5

80,043100.0

9.2

Compulsory automobile liability

Total(12.7)Net Premiums Written(Millions of yen)

For the nine months ended
December 31, 2017

For the nine months ended
December 31, 2016
AmountComposition

YoY Change%

AmountComposition%

YoY Change%%

Fire

180.0

(48.9)

110.0

Marine(2)(0.0)(106.8)00.0(36.6)－

Personal accident

6,811

9.2

1.3

6,671

8.2(2.0)
10.3

Voluntary automobile

66,37189.4

3.8

73,20090.4

Compulsory automobile liability

1,074

1.4

1.9

1,132

1.4

5.3

Total

74,273100.0

3.5

81,016100.0

9.1

Net Losses Paid
(Millions of yen)

For the nine months ended
December 31, 2016
Amount

For the nine months ended
December 31, 2017

Net loss ratio

YoY Change%

AmountYoY Change%

Net loss ratio
%%

Fire

5

335.4

127.6

5(4.7)

267.4

Marine(9)(107.6)

－2－

322.4

Personal accident

1,919

4.4

31.2

2,029

5.7

33.5

Voluntary automobile34,034

4.4

59.3

35,501

4.3

55.8

991

2.9

92.2

995

0.4

88.0

36,941

4.0

57.2

38,5344.3

54.4

Compulsory automobile liability

Total

5

5. Non-consolidated Solvency Margin Ratio(Millions of yen)
As of March 31, 2017(A) Total non-consolidated solvency margin
Capital or treasury, etc.

As of December 31, 2017

46,72454,86826,43930,099Reserve for price fluctuations

177

199

Contingency reserve

101

107

Catastrophe reserve

17,542

20,107－－1,514

1,981

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

Excess refund reserve－－

Subordinated debt
The portion of the excess refund reserve and subordinateddebt that is not included in the margin
Deductible items－－－－－－Others(B) Total non-consolidated risk

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

948

2,372

12,786

13,548

11,37012,097

Ordinary insurance risk

(R1)

Third-sector insurance risk

(R2)

－－

Assumed interest rate risk

(R3)

105

112Asset management risk

(R4)

1,431

1,594

Business management risk

(R5)278296(R6)
Major catastrophe risk(C) Non-consolidated solvency margin ratio

1,033

1,034

730.8 %

809.9 %[(A)／{(B)×1/2}]×100

Note: The above figures are calculated based on the provisions in Articles 86 and 87 of the Ordinance for Enforcement ofthe Insurance Business Act of Japan and Ministry of Finance Public Notice No. 50 of 1996.
A part of calculations for non-consolidated solvency margin ratio as of December 31, 2017 is calculated according tosimplified methods in major catastrophe risk. The figure is assumed to be equivalent to the amount as of September 30, 2017.
<Non-consolidated Solvency Margin Ratio>
Non-life insurance companies maintain reserves to ensure their ability to pay claims when accidents occur and return contracted amounts
at maturity on savings-type insurance. Non-life insurance companies must also maintain sufficient ability to cover against risk events
which exceed its normal estimates, i.e. occurrence of a major catastrophe or a dramatic drop in the value of the assets they hold.
Total risk (item (B) in the table) indicates risk events which exceed the normal estimates.
The non-consolidated solvency margin ratio (item (C) in the table) is an indicator of an insurer’s ability to pay, calculated
as prescribed by the Insurance Business Act of Japan, based on its percentage holdings of capital and other reserves(in other words, the total non-consolidated solvency margin, as indicated by (A) ).
“Risk events which exceed the normal estimates” refers to the total of the amounts represented by the following risks :(1) Insurance underwriting risk
: Risk which exceeds the normal estimates for the rate of accident occurrence(Ordinary insurance risk)(excluding major catastrophe risk)(Third-sector insurance risk)(2) Assumed interest rate risk
(3) Asset management risk
(4) Business management risk(5) Major catastrophe risk

: Risk that actual investment yields will fall below
the investment yield assumed when calculating premiums: Risk arising from such factors as unexpectedly large fluctuations in prices
on held securities and other assets: Unexpected risk to business management other than (1) through (3) above and (5): Risk arising from major catastrophes(such as the Great Kanto Earthquake and the Ise Bay Typhoon)

A non-life insurer’s ability to pay (total non-consolidated solvency margin), as indicated by such factors as its capital and reserves,is the total of the insurer’s net assets (excluding the amount of expected outflow from the company),
reserves (such as the reserve for price fluctuations and catastrophe reserve) and a portion of its net unrealized gains on real estate.
The non-consolidated solvency margin ratio is one of the objective indicators used by the insurance regulatory authorities
to supervise insurers.
When this ratio is 200% or higher, an insurer is judged to have sufficient ability to satisfy claims and other payments.

6