May 20, 2011
Sony Financial Holdings Inc.

Summary Information on Sony Life’s Financial Results
for the Year Ended March 31, 2011
<Contents>
1. Key Performance Results

P.2

2. Policy Amount in Force by Insurance Function as of March 31, 2011

P.4

3. Example of Policyholder Dividend, based on Figures for the Year Ended March 31, 2011

P.5

4. Investment in General Account Assets for the Year Ended March 31, 2011

P.6

5. Non-consolidated Balance Sheets

P.13

6. Non-consolidated Statements of Income

P.14

7. Reconciliation to Core Profit and Non-Consolidated Ordinary Profit

P.15

8. Loans by Borrower Category

P.16

9. Risk-monitored Loans

P.16

10. Solvency Margin Ratio

P.17

11. Status of Separate Accounts Assets

P.19

12. Consolidated Summary

P.21

13. (Reference 1) Results for the Three Months Ended March 31, 2011

P.24

14. (Reference 2) Holdings of Securitized Papers and Other Sub-prime Related Investments

P.25

1

1. Key Performance Results(1) Policy Amount in Force and New Policy Amount(Number: Thousand, Amount: 100 millions of yen, %)Policy amount in force

As of March 31, 2010
Category
Individual life insurance
Individual annuities
Group life insuranceGroup annuities

Number4,954
55-% change fromMarch 31, 2009

106.4
108.8
-

Amount331,641
3,066
11,274723

As of March 31, 2011
% change fromMarch 31, 2009

Number

102.9
106.3
110.6
98.4

% change fromMarch 31, 2010

5,283
60
-

106.6
108.5
-

Amount344,218
3,266
11,987589% change fromMarch 31, 2010

103.8
106.5
106.3
81.5

Notes: 1. Policy amounts for individual annuities are equal to the sum of (a) the funds to be held at the time annuity payments commence for policies
for which annuity payments have not yet commenced and (b) the amount of policy reserves for which payments have commenced.
2. The policy amount in force for group annuities is equal to the amount of outstanding policy reserves.
(Number: Thousand, Amount: 100 millions of yen, %)New policy amountFor the year ended March 31, 2010
Category

Number% YoYchangeAmount% YoYchangeFor the year ended March 31, 2011

New policies

Increase fromconversion

Number% YoYchangeAmountIndividual life insurance
575
109.3
40,175104.8
40,175592
102.9
41,662
Individual annuities
6
88.1
317
81.1
317
6
105.2
327
Group life insurance
72
47.8
72
149
Group annuities
Notes: 1. The new policy amount including increase from conversion for individual annuities is equal to the funds held at the time annuity payments commence.
2. The new policy amount for group annuities is equal to the initial premium payment.

% YoYchange

103.7
103.3
206.3
-

New policies

41,662327
149-(2) Annualized Premiums(Millions of yen, %)Policy amount in force

Category
Individual life insurance
Individual annuities

Total
Of which, medical protection, living
benefit protection, etc.

As of March 31, 2010

% change fromMarch 31, 2009

As of March 31, 2011

% change fromMarch 31, 2010

563,002
10,329573,331

104.6
107.1
104.6

592,438
12,354
604,793

105.2
119.6
105.5

133,023105.0

140,776

105.8(Millions of yen, %)New policies

Category
Individual life insurance
Individual annuities

Total
Of which, medical protection, living
benefit protection, etc.

For the year ended
March 31, 2010

% YoYchangeFor the year ended
March 31, 2011

% YoYchange67,332
1,447
68,780

112.0
91.3
111.5

69,467
1,763
71,230

103.2
121.8
103.6

16,264121.0

16,679102.6

Notes: 1. Annualized premiums refer to an amount that is calculated by multiplying individual premium amounts by a coefficient that differs depending on the premium payment methods,
thereby converting the figure to a per-year premium. (For lump-sum payment policies, premiums are divided by the number of coverage years.)
2. "Medical protection and living benefit protection products, etc." indicates the portion of annualized premiums for medical protection benefits (hospitalization benefits,surgical procedure benefits, etc.) and products with living benefit protection (benefits for specific illness, nursing care benefits, etc.)

2

Increase fromconversion-

(3) Major P/L Items
Category(Millions of yen, %)For the year ended
March 31, 2010

% YoYchangeFor the year ended
March 31, 2011

% YoYchangeIncome from insurance premiums

700,101105.8

770,330

110.0

Investment income

175,397

177.6

119,500

68.1

Insurance claims and other payments

274,27899.8

297,966

108.6

Investment expenses

20,58415.4

19,303

93.8

Ordinary profit

80,099247.1

73,176

91.4(4) Total Assets
Category
Total assets(Millions of yen, %)As of March 31, 2010
4,286,540

3% change fromMarch 31, 2009112.5

As of March 31, 2011
4,723,332% change fromMarch 31, 2010110.2

2. Policy Amount in Force by Insurance Function as of March 31, 2011
(Number: Thousand, Amount: 100 millions of yen)
Individual life insurance

Individual annuities

Group life insurance

NumberAmountNumberNumberAmountNumberAmountOrdinary death

4,385

330,040

-

-

2,485

11,9876,870

342,027

Accidental death823

76,318

-

-

53

30

876

76,349Death protection
with otherconditions

296

12,069

-

-

-

-

296

12,069898

14,177

60

3,266

0

0

958

17,445

Accidental
hospitalization

2,408

173

-

-

93

0

2,501

174

Sickness
hospitalization

2,408

173

-

-

-

-

2,408

173

Hospitalization
with otherconditions

864

76

-

-

-

-

864

76

Disability protection

516

-

-

-

93

-

610

-

Surgery protection

1,616

-

-

-

-

-

1,616

-

Total

Category

Death protection

Living protection
Hospitalization protection

Asset-formation insurance,
asset-formation annuities

Group annuities
Category

Living protection

Category

NumberAmount181

589

NumberTotal

Amount--Medical protection
insurance
NumberHospitalization
protection

AmountNumberAmount181

589

Disability insurance
Category

Amount-Number-Disability protection

Amount-Notes: 1. The number of new policies for group life insurance products, and group annuity products reflects the total numberof insured parties.
2. Of the policy amount in the living protection column, policy amount in force for individual annuities
and group life insurance (annuity payment rider) is equal to the sum of (a) the funds to be held at the timeannuity payments are to commence for policies for which annuity payments have not yet commenced and(b) the amount of policy reserves for policies for which payments have commenced.
The policy amount in force for group annuity products is the amount of outstanding policy reserves.
3. Figures for hospitalization protection show the dairy claims for hospitalization.

4-

3. Example of Policyholder Dividend, based on Figures for the Year Ended March 31, 2011
(1) Standard dividend yields for semi-participating individual life insurance with policyholder dividends
every five years
For the year ended
March 31, 2010For year ended
March 31, 2011

Assumed interest rates of 2.00% or lessLevel-premium
Lump-sum premium and others

Assumed interest rates of more than 2.00%

Interest rate
2.50% or lessmore than 2.50%

Level-premium
Lump-sum premium and others

2.80%

1.55%
1.20%

2.70%
2.60%

1.40%
1.05%

(2) Below is an example of policyholder dividends for semi-participating whole life nursing-care insurance(before annuities commence)
Example: Semi-participating whole life nursing-care insurance (before nursing care annuity commences)Entered at 30, male, lump-sum payment, 10x death benefit, basic care annuity amount of 0.5 million

Contract Date
2-Nov-10
2-Nov-09
2-Nov-08
2-Nov-07
2-Nov-06

Assumed interest rateYears elapsed

1.50％
1.50％
1.50％
1.50％
1.50％

Policies to which
nursing care applies,
ending at death ofpolicyholder (yen)Ongoing policy(yen)

1 year
2 years
3 years
4 years
5 years

34,008031,0730
16,02834,008

Note: 1. The “Policies to which nursing care applies, ending at death of policyholder” column shows the amount receivablefor nursing care or upon death. The number of years elapsed is the number through November 2, 2011.
2. The above-stated dividend amount is the sum of the pro-rated dividend amount(policy reserve x dividend participation ratio) and interest through November 2, 2011(excluding dividends already paid).
Note: Dividend participation ratio = Standard dividend yield - Assumed interest rate(3) Dividend participation ratio on group annuities
The standard dividend yield on group annuities is 1.30%, using figures for the year ended March 31, 2011.
Note: Dividend participation is calculated as follows:
Dividend amount = Policy reserve x Dividend participation ratio
Dividend participation ratio = Standard dividend yield - Assumed interest rate(4) For group annuities and other products, a reserve for policyholders’ dividends is accumulated inaccordance with each product’s characteristics

5

4. Investment in General Account Assets for the Year Ended March 31, 2011
(1) Overview of the Asset Management for the Year Ended March 31, 2011(i) Investment Environment
During the fiscal year ended March 31, 2011, the Japanese economy remained in a recovery phase. Exports and personal
consumption were firm, but growth turned negative after the eco-car subsidy system ended. Real GDP growth was 2.1% for
the April–June 2010 quarter, 3.3% in the July–September quarter, and negative 1.3% in the October–December quarter.
Negative growth is also forecast for the January–March 2011 quarter.
The bond markets rallied (yields fell) through September 2010, then fell (yields rose) thereafter. Financial uncertainty inEurope and concerns about economic deceleration in Japan and other countries prompted bond purchases in the first half ofthe fiscal year. However, expectations of U.S. economic recovery mounted as the result of a November 2010 announcement
about further economic easing in the country, causing long-term interest rates to rise in Japan, as in the United States. As of
March 31, 2011, yields on 10-year Japanese government bonds (JGBs) were 1.255%, down 0.145 percentage point from ayear earlier.
Japanese stock markets, although bullish, fell as a consequence of the Great East Japan Earthquake. Financial uncertainty inEurope and yen appreciation in the first half prompted a fall in the Nikkei. Buoyed by a temporary abatement in yen
appreciation and a sense of economic recovery overseas, by December the Nikkei had rebounded above ¥10,000. However, in
the aftermath of the March earthquake and fears of a nuclear accident, the Nikkei plunged, falling at one point to ¥8,227.63.
As of March 31, 2011, the Nikkei was ¥9,755.10, down ¥1,334.84 from its level one year earlier.
In foreign exchange markets, the yen continued to appreciate against the U.S. dollar. Mounting uncertainty about European
government finances and further U.S. monetary easing prompted yen purchases. Accordingly, by November 2010, the yen had
appreciated into the neighborhood of ¥80 to the dollar. Thereafter, the yen vacillated in the range of ¥80–85 to the dollar, untilin the aftermath of the earthquake overseas currency speculators drove the currency upward, at one point to a record high of¥76.24 against the dollar. Concerted intervention by the G7 economies brought the yen back down to above ¥80 to the dollar.
As of March 31, 2011, the yen was trading at ¥83.15 to the dollar, representing appreciation of ¥9.89 compared with one year
earlier.

(ii) Investment Policy
Our basic investment policy on general account assets is to secure stable investment income and target asset soundness. In
our bond investments, which center on JGBs with long terms remaining until maturity, the company controlled interest raterisk in its portfolio.

(iii) Results of Investment

As of March 31, 2011, general account assets totaled ¥4,325.2 billion, up 10.5%, or ¥412.2 billion, from March 31, 2010.
Within the general account assets, domestic bond investment totaled ¥3,499.9 billion (accounting for 80.9% of total generalaccount assets), domestic stocks ¥64.0 billion (1.5%), foreign bonds ¥44.2 billion (1.0%), monetary trusts ¥276.4 billion(6.4%), policy loans ¥134.4 billion (3.1%), cash and deposits and call loans ¥80.0 billion (1.9%), and real estate ¥75.1 billion(1.7%).

6

(2) Portfolio of General Account Assets
Category
Cash and deposits, call loans
Securities repurchased under resale agreements
Pledged money for bond borrowing transaction

Monetary claims purchased
Securities under proprietary accounts
Monetary trusts
Securities
JGBs, other bonds
Japanese stocks
Foreign securities
Bonds
Stocks, etc.
Other securities
Loans
Real estate
Deferred tax assets
Other assets
Reserve for possible loan losses
Total
Foreign-currency denominated assets

As of March 31, 2010
Amount%116,4423.0
288,772
7.4
3,188,812
81.5
3,032,933
77.5
72,525
1.9
75,285
1.9
49,915
1.3
25,370
0.6
8,067
0.2
127,599
3.3
79,9152.0
27,686
0.7
83,918
2.1
(212)
(0.0)
3,912,935
100.0
21,724
0.6(Millions of yen, %)As of March 31, 2011
Amount%80,0591.9276,475
6.4
3,644,781
84.3
3,499,914
80.9
64,011
1.5
74,2401.7
44,2121.0
30,027
0.7
6,615
0.2
134,419
3.1
75,162
1.7
40,7380.9
73,799
1.7
(228)
(0.0)
4,325,208
100.0
27,5370.6(3) Changes in General Account Assets by Categories(Millions of yen, %)Category

For the year ended March 31, 2010
58,390Cash and deposits, call loans(318,853)
629,574
648,465
21,551(39,993)(43,794)
3,800
(448)
7,137
(1,838)(7,753)
10,511(3)
377,165(12,574)

Securities repurchased under resale agreements
Pledged money for bond borrowing transaction

Monetary claims purchased
Securities under proprietary accounts
Monetary trusts
Securities
JGBs, other bonds
Japanese stocks
Foreign securities
Bonds
Stocks, etc.
Other securities
Loans
Real estate
Deferred tax assets
Other assets
Reserve for possible loan losses
Total
Foreign-currency denominated assets

7

For the year ended March 31, 2011
(36,383)(12,296)455,969
466,981(8,514)(1,045)(5,702)
4,657(1,451)
6,819(4,752)
13,052(10,119)(16)
412,273
5,812

(4) Investment Income(Millions of yen)

For the year ended
March 31, 2010

Category
Interest income and dividends
Interest income from deposit
Interest income and dividends from securities
Interest income from loans
Income from real estate for rent
Other income from interests and dividends
Gains on securities under proprietary accounts
Income from monetary trusts, net
Income from trading securities, net
Gains on sale of securities
Gains on sale of JGBs, other bonds
Gains on sale of Japanese stocks
Gains on sale of foreign securities
Other
Gains on redemption of securities
Gains on derivatives, net
Foreign exchange gains, net
Other investment income
Total

For the year ended
March 31, 2011

70,668054,662
4,991
10,94271

87,533070,883
5,216
11,37953-

22,887

6,983

15,107
4,126
10,614367

24,98223,806
1,113
62

-

-

3,939

0
-

37
112,639

1
119,500(5) Investment Expenses(Millions of yen)

For the year ended
March 31, 2010

Category
Interest expense
Losses on securities under proprietary accounts
Losses from monetary trusts, net
Losses on trading securities, net
Losses on sale of securities
Losses on sale of JGBs, other bonds
Losses on sale of Japanese stocks
Losses on sale of foreign securities
Other
Devaluation losses on securities
Devaluation losses on JGBs, other bonds
Devaluation losses on Japanese stocks
Devaluation losses on foreign securities
Other
Losses on redemption of securities
Losses on derivatives, net
Foreign exchange losses
Provision for reserve for possible loan losses
Write-off of loans
Depreciation of real estate for rent and others
Other investment expenses
Total

For the year ended
March 31, 2011
29

56
-

10,073
7,904
2,168
361

1,866
7
1,782
77
348
348
23

833
3

533
20

2,763
6,518
20,584

8

2,551
6,432
11,832

(6) Investment Efficiency(i) Investment yield by type of asset(%)

Category
Cash and deposits, call loans

For the year ended
March 31, 2010

For the year ended
March 31, 2011

0.08

0.07

Securities repurchased underresale agreements
Pledged money for bondborrowing transaction

-

-

-

-

Monetary claims purchased--

Securities under proprietaryaccounts--

Monetary trusts

4.76

2.55

Securities

2.16

2.70

JGBs, other bonds

2.12

2.80

Japanese stocks

13.13

0.57

Foreign securities(2.21)

0.25

Loans

4.05

3.98

Real estate

4.73

4.43

Total

2.54

2.68

Overseas investment(2.22)

0.24

Notes: 1. The denominator of investment yield calculation is a daily averaged carrying amount, while the numerator isinvestment income minus investment expenses.
2. Valuation gains for Article 112 of Insurance Law is not accounted for.
3. Yield on oversea investment is a total of foreign-currency-denominated assets and yen-denominated assets.
(ii) Valuation gains (losses) on trading-purpose securities(Millions of yen)

As of March 31, 2010
Category
Trading-purpose securities

As of March 31, 2011

Net valuation gains(losses) recorded inincomeBalance sheet
amount-5,711

Note: The chart above includes trading-purpose securities in "monetary trusts" etc.

9

Net valuation gains(losses) recorded inincomeBalance sheet
amount--(iii) Fair Value Information on Securities
a. Fair value information on securities with market value (except trading-purpose securities)(Millions of yen)

As of March 31, 2010
Category

Net unrealized gains (losses)

Carrying
amountHeld-to-maturity securities

As of March 31, 2011

Fair value

Unrealized Unrealized
gains
lossesNet unrealized gains (losses)

Carrying
amountFair value

Unrealized Unrealized
gains
losses2,275,629

2,255,176(20,453)

10,572

31,0262,914,365(22,184)

25,51847,703

Policy reserve matching bonds

-

-

-

-

-

-

-

-

-

-

Stocks of subsidiaries and affiliatedcompanies

-

-

-

-

-

-

-

-

-

-

Available-for-sale securities

2,892,180

1,126,543

1,166,944

40,401

42,252

1,850

940,112964,374

24,26130,903

6,642

JGBs, other bonds

1,061,593

1,090,012

28,41829,677

1,259

884,466

904,194

19,72722,921

3,194

Japanese stocks

51,72362,183

10,45910,956497

49,85653,706

3,849

7,207

3,357

Foreign securities

8,084

8,010

(74)

19

93

1,919

1,828

(90)

-

90

8,084

8,010

(74)

19

93

1,919

1,828

(90)

-

90

Bonds

-

-

-

-

-

5,140

6,738

1,597

1,598

0

Money claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

-

Stocks, etc.
Other securities

3,869

4,644

774

-

-

774

-

Total

3,402,172

3,422,120

19,947

52,82432,8773,854,478

3,856,555

2,077

56,422

54,345

JGBs, other bonds

3,295,318

3,295,356

37

32,32332,285

3,756,448

3,749,943(6,505)44,39250,897

Japanese stocks

51,72362,183

10,45910,956497

49,85653,706

3,849

7,207

3,357

Foreign securities

49,98957,843

7,853

7,947

93

44,30348,260

3,957

4,048

90

49,98957,843

7,853

7,947

93

44,30348,260

3,957

4,048

90

Bonds
Stocks, etc.

-

-

-

-

-

5,140

6,738

1,597

1,598

0

Monetary claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

-

Other securities

3,869

4,644

774

774

Notes: 1. The above table includes assets such as certificates of deposits which are permitted to be treated as equivalent to securities defined in the Financial Instruments and Exchange Law of Japan.
2. Carrying amount and net unrealized gains (losses) on monetary trusts, including items other than trading-purpose securities, amounted to ¥268,446 million and ¥7,814 million.
3. Carrying amount represents the amount after deductions for depreciable costs and impairment losses, before mark-to-market.

b. Carrying amounts of the securities without market value(Millions of yen)

Category

As of March 31, 2011

As of March 31, 2010

Held-to-maturity securities--

Unlisted foreign bonds--

Others--

Policy reserve matching bonds--

Stocks of subsidiaries and affiliated companies

15,847

15,847Available-for-sale securities

24,88327,582Unlisted Japanese stocks (except OTC stocks)

42

4

Unlisted foreign stocks (except OTC stocks)

885

1,049
-

-

Unlisted foreign bonds
OthersTotal

1023,955

26,52840,73143,430-c. Fair value information consisting of that stated in the previous table-a and foreign exchange and other gains (losses) for table-b as follows:(Millions of yen)

As of March 31, 2010
Category

Held-to-maturity securities

Net unrealized gains (losses)

Carrying
amountFair value

2,275,629

2,255,176

Policy reserve matching bonds

As of March 31, 2011-

Unrealized Unrealized
gains
losses(20,453)-

Stocks of subsidiaries andaffiliated companies

15,847

15,847Available-for-sale securities

10,572

31,026

-

-

-

-

-

-

Net unrealized gains (losses)

Carrying
amountFair value

2,914,365

2,892,180-

Unrealized Unrealized
gains
losses(22,184)-

15,847

15,84725,51847,703

-

-

-

-

-

-

1,151,426

1,188,138

36,711

42,946

6,234

967,695

990,829

23,13332,820JGBs, other bonds

1,061,593

1,090,012

28,41829,677

1,259

884,466

904,194

19,72722,921

3,194

Japanese stocks

51,76662,225

10,45910,956497

49,86153,711

3,849

7,207

3,357

Foreign securities

8,970

8,809

(160)

19

180

2,969

2,807

(162)

-

8,084

8,010

(74)

19

93

1,919

1,828

(90)

-

90

Stocks, etc.

885

798

(86)

86

1,049

978

(71)

-

71

Other securities

29,095

Bonds

27,090(2,005)

2,292

4,298

30,39730,116

(281)

9,686

2,691

162

2,972

Money claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

-

Total

3,442,904

3,459,162

16,25853,51937,261

3,897,908

3,898,857

949

58,33957,389JGBs, other bonds

3,295,318

3,295,356

37

32,32332,285

3,756,448

3,749,943(6,505)44,39250,897

Japanese stocks

62,066

72,525

10,45910,956497

60,16164,011

3,849

7,207

3,357

Foreign securities

162

56,42264,189

7,766

7,947

180

50,90054,786

3,886

4,048

Bonds

49,98957,843

7,853

7,947

93

44,30348,260

3,957

4,048

Stocks, etc.

6,433

6,346

(86)

86

6,597

6,526

(71)

Other securities

29,09527,090(2,005)

2,292

4,298

30,39730,116

(281)

90
-

2,691

71
2,972

Monetary claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

-

11

(iv) Fair value information on monetary trusts(Millions of yen)

As of March 31, 2011

As of March 31, 2010
Category

Monetary trusts

Balancesheet
amountFair value

288,772

288,772

Unrealized Unrealized
gains
lossesBalancesheet
amountFair value-

276,475

276,475

Net unrealized gains (losses)--

Net unrealized gains (losses)
Unrealized Unrealized
gains
losses---Note: The table above includes ¥50 million of jointly invested monetary trusts.

Monetary trusts for investment(Millions of yen)

As of March 31, 2011

As of March 31, 2010
Category

Balance sheet amount

Net valuation
gains (losses)
recorded income

Balance sheet amount

681

5,711

-

Monetary trusts for investment

Net valuation
gains (losses)
recorded income-

Monetary trusts for held-to-maturity and policy reserve matching and other monetary trusts(Millions of yen)

As of March 31, 2010

As of March 31, 2011

Net unrealized gains (losses)

Category

Carrying
amountFair value

Net unrealized gains (losses)

Unrealized Unrealized
gains
lossesCarrying
amountFair value

Unrealized Unrealized
gains
lossesMonetary trusts for held-to-maturity

-

-

-

-

-

-

-

-

-

-

Monetary trusts for policy reserve matching

-

-

-

-

-

-

-

-

-

-

285,525

288,039

2,514

2,968

453

268,610

276,425

7,814

7,814

-

Other monetary trusts

125. Non-consolidated Balance Sheets(Millions of yen)
As ofMarch 31, 2010

As ofMarch 31, 2011

AmountAmountAssets:Cash and deposits
Cash
Deposits
Call loans
Monetary trusts
Securities(Japanese government bonds)(Japanese municipal bonds)(Japanese corporate bonds)(Japanese stocks)(Foreign securities)(Other securities)
Loans
Policy loans
Tangible fixed assets
Land
Buildings
Leased assets
Other tangible fixed assets
Intangible fixed assets
SoftwareLeased assets
Other intangible fixed assets
Due from reinsurers
Other assets
Other receivable
Prepaid expenses
Accrued income
Money on deposits
Advance payments
Other
Deferred tax assets
Reserve for possible loan losses

45,707
13
45,69391,800288,772
3,539,114
3,023,972
28,43399,351103,098
186,043
98,214
127,599
127,599
80,92333,076
46,839272
735
13,862
13,8140
47
120
71,16541,5801,288
22,399
3,875
322
1,699
27,686(212)

35,10313
35,08968,500276,475
4,017,583
3,548,082
11,32870,61092,691
192,328
102,540
134,419
134,419
76,014
31,46943,693230
621
18,39018,346－44
84
56,25034,335
1,248
14,327
4,073
491
1,773
40,738(228)

Total Assets

4,286,540

4,723,332

As of
As of
March 31, 2010 March 31, 2011

AmountAmountLiabilities:
Policy reserves and others
Reserve for outstanding claims
Policy reserves
Reserve for policyholders' dividends
Due to agencies
Due to reinsurers
Other liabilities
Accrued income tax
Other payables
Accrued expenses
Unearned income
Deposits received
Deposits received for guarantee
Lease obligations
Asset retirement obligations
Policy suspense and other suspense
Reserve for employees' retirement benefits
Reserve for directors' retirement benefits
Reserve for price fluctuations
Reserve for price fluctuations
Deferred tax liabilities on land revaluation

4,012,112
21,424
3,985,610
5,076
1,445
716
55,501
16,943
16,772
12,088
949
372
5,627
325
2,420
14,989
118
9,637
9,637
706

4,404,576
28,252
4,371,484
4,839
1,502
684
65,98019,482
23,492
12,625
956
542
5,518
284
633
2,445
17,596143
16,768
16,768693

Total Liabilities

4,095,228

4,507,945

Net Assets:
Common stock
Capital surplus
Capital reserve
Retained earnings
Earned reserve
Other retained earnings
Unappropriated retained earnings
Total shareholders' equity
Net unrealized gains on other securities, net of taxes
Land revaluation, net of taxes
Total valuation and translation adjustments
Total Net Assets
Total Liabilities and Net Assets

70,0005,865
5,865
101,464
9,878
91,58591,585
177,329
15,458(1,475)
13,982
191,3124,286,540

70,0005,865
5,865
134,008
11,418
122,590
122,590
209,873
7,013(1,499)5,513
215,387
4,723,332

13

6. Non-consolidated Statements of Income(Millions of yen)

For the ｙear ended
March 31, 2010
Ordinary Revenues
Income from insurance premiums
Insurance premiums
Ceded reinsurance commissions
Investment income
Interest income and dividends
Interest income from deposits
Interest income and dividends from securities
Interest income from loans
Rent revenue from real estate
Other interest income and dividends
Income from monetary trusts, net
Gains on sale of securities
Gains on redemption of securities
Other investment income
Gains on separate accounts, net
Other ordinary income
Income for annuity riders
Income from deferred payment of claims
Other ordinary income
Ordinary Expenses
Insurance claims and other payments
Insurance claims
Annuity payments
Insurance benefits
Surrender payments
Refund to policyholders
Reinsurance premiums
Provision for policy reserves and others
Provision for reserves for outstanding claims
Provision for policy reserves
Interest on policyholders' dividend reserve
Investment expenses
Interest expenses
Losses on sale of securities
Devaluation losses on securities
Losses on redemption of securities
Foreign exchange losses, net
Provision for reserve for possible loan losses
Depreciation of real estate for rent and others
Other investment expenses
Losses on separate accounts, net
Operating expenses
Other ordinary expenses
Payments of deferred claims
Taxes
Depreciation and amortization
Provision for reserve for employees' retirement benefits
Provision for reserve for directors' retirement benefits
OthersOrdinary Profit
Extraordinary Losses
Losses on disposal of fixed assets
Impairment losses
Provision for reserve for price fluctuations
Provision for reserve for price fluctuations
Loss on adjustment for changes of accounting standard
for retirement obligations
Provision (Reversal) for Reserve for Policyholders' Dividends
Income Before Income Taxes
Income Taxes - current
Income Taxes -deferred
Income Taxes -total
Net Income
14

For the year ended
March 31, 2011

881,798
700,101
698,168
1,932
175,397
70,668054,662
4,991
10,942
71
22,887
15,1073,939
37
62,757
6,299
1,449
3,591
1,258
801,698
274,278
64,855
7,742
34,670162,6941,950
2,364
395,5512,312
393,234
4
20,58429
10,073
－
361
833
3
2,763
6,518
－
96,86014,424
2,611
6,470
2,334
2,982
22
2
80,099
6,107
116
5
5,984
5,984

900,091
770,330
768,259
2,070
119,500
87,533070,883
5,216
11,37953
6,983
24,9820
1－
10,260
1,625
7,202
1,432
826,914
297,966
76,5138,224
38,346
170,716
1,853
2,312
392,722
6,827
385,87321
19,303
56
1,866
348
23
533
20
2,551
6,432
7,470
99,374
17,548
4,678
6,784
2,754
3,299
25
5
73,176
8,735
22
1,291
7,131
7,131

－

290

3,516
70,47522,688
1,649
24,337
46,138

1,257
63,18331,374(8,411)
22,96240,2207. Reconciliation to Core Profit and Non-consolidated Ordinary Profit(Millions of yen)
For the year ended
March 31, 2010
Core Profit

A

Capital gains
Income from monetary trusts, net
Income from trading securities, net
Gains on sale of securities
Gains on derivatives, net
Foreign exchange gains, net
Other capital gains
Capital losses
Losses on monetary trusts, net
Losses on trading securities, net
Losses on sale of securities
Devaluation losses on securities
Losses on derivatives, net
Foreign exchange losses, net
Other capital losses

For the year ended
March 31, 2011

64,51756,29529,947
14,839－15,107－－－
11,355－－
10,073－－833
449

26,604
1,622－
24,982
－
－
－
2,748
－
－
1,866
348
－
533
－

Net capital gains (losses)

B

18,591

23,856

Core profit plus net capital gains (losses)

A+B

83,10880,152

－
－
－
－
3,009
－
3,005
3

－
－
－
－
6,975
－
3,062
20

－

－

－
－

－
3,893

C

(3,009)(6,975)

A+B+C

80,09973,176

Other one-time gains
Ceded reinsurance commissions
Reversal of contingency reserves
Other
Other one-time losses
Losses from reinsurance
Provision for contingency reserve
Provision for specific reserve for possible loans losses
Provision for reserve for loan losses from borrowers in specificforeign countries
Write-off of loans
Other
Net other one-time gains (losses)
Ordinary Profit

Notes: 1. Core profit for the fiscal year ended March 31, 2011 (A) includes income gains of ¥5,361 million in income from monetary trusts;
other capital losses include impairment losses of ¥3,893 million from investment partnership.
2. Core profit for the fiscal year ended March 31, 2010 (A) includes income gains of ¥8,047 million in income from monetary trusts;
other capital losses include impairment losses of ¥449 million from investment partnership.

15

8. Loans by Borrower Category(Millions of yen)

Category

As of March 31, 2010

As of March 31, 2011

Bankrupt and quasi-bankrupt loans

00Doubtful loans

00Sub-standard loans

00Sub-total00[ ] % to total

[- ]

[- ]

129,867

136,809

129,867

136,809

Normal loans
Total

Notes: 1. Bankrupt and quasi-bankrupt loans are loans to borrowers who are subject to bankruptcy, corporate reorganization or
rehabilitation or other similar proceedings and other borrowers in serious financial difficulties.
2. Doubtful loans are loans to obligors (other than bankrupt and quasi-bankrupt obligors) with deteriorated financial
condition and results of operations from which it is unlikely that the principal and interest on the loans will be recovered.
3. Sub-standard loans are loans on which principal and/or interests are past due for three months or more and loans with aconcessionary interest rate, as well as loans with renegotiated conditions in favor of the borrower, including renegotiatedschedule and/or waivers, in each case, other than the loans described in notes 1. and 2. above.
4. Normal loans are all other loans.

9. Risk-monitored Loans
Not applicable1610. Solvency Margin Ratio(Millions of yen)

Category

As of March 31, 2010

Total solvency margin

As of March 31, 2011

630,237

690,331

170,329

200,773

Reserve for price fluctuations

9,637

16,768Contingency reserve

48,49751,559(A)

Common stock, etc.

General reserve for possible loan losses
Net unrealized gains on other securities multiplied by 90% if
gains or 100% if losses
Net unrealized gains on real estate multiplied by 85% if gains
or 100% if losses

0033,04020,820

1,633

1,002

Excess amount of policy reserves based on Zillmer method

316,510334,201

Unallocated portion of reserve for policyholders' dividends

2,346

1,186

Future profits

1,022

628

Deferred tax assets

47,21963,388Subordinated debt－－

Deductible items－－

47,79247,606

Total risk

(B)

Insurance risk

R1

19,19920,014

Third-sector insurance risk

R8

7,094

7,269

Assumed interest rate risk

R2

11,395

11,573

Asset management risk

R318,932

16,822Business management risk

R4

1,292

1,294

Minimum guarantee risk

R7

8,023

9,025

2,637.3%

2,900.1%

Solvency margin ratio
(A)
x

100

(1/2) x (B)Notes: 1. The foregoing figures were calculated based on provisions in Articles 86 and 87 of the Insurance Business Law
Enforcement Regulations and the Ministry of Finance Announcement No. 50 (1996).
(Excess amount of policy reserves based on Zillmer method were calculated based on Article 1-3-1 of the Ministry of
Finance Announcement No. 50.)
2. Minimum guarantee risk was calculated based on the standardized approach.

17

(Reference) Solvency Margin Ratio Calculated Under the New Regulation(Millions of yen)

Category
Total solvency margin

As of March 31, 2011
625,790(A)

Common stock, etc.

200,773

Reserve for price fluctuations

16,768Contingency reserve

51,5590General reserve for possible loan losses
Net unrealized gains on other securities (before taxes) multiplied by 90% if
gains or 100% if losses

20,820Net unrealized gains on real estate multiplied by 85% if gains or 100% if losses

1,002

Excess of the amount equivalent to policy reserve under Zillmer method

334,201

Unallotted portion of reserve for poricyholders' dividends

1,186

Deductible items

63,388-Subordinated debt
The portion of the excess amount of policy reserves based on Zillmer method
and subordinated debt that is not included in the margin(63,912)-

Deductible items

Total risk

72,763(B)

Insurance risk

R1

20,014

Third-sector insurance risk

R8

7,269

Assumed interest rate risk

R227,902

Asset management risk

R3

28,726

Business management risk

R4

8,820

Minimum guarantee risk

R7

1,854

Solvency margin ratio
(A)
x 100

1,720.0%(1/2) x (B)Note: Cabinet Office Ordinance No. 23 (2010) and FSA Notification No.48 (2010) prescribe a revision in the methods ofcalculating total solvency margin and total risk (increasing the strictness of margin inclusion, and making risk measurement
stricter and more sensitive). These changes are to be applied from fiscal 2011. The above-stated figures are calculated on theassumption that these changes are applied at the end of fiscal 2010.

18

11. Status of Separate Accounts Assets(1) Balance of Separate Account Assets(Millions of yen)

Category

As of March 31, 2010

As of March 31, 2011

AmountAmountIndividual variable life
insurance and individual
variable annuities
Group annuities

373,604

398,124--

373,604

Total separate account398,124

Note: Assets relating to individual variable life insurance and individual variable annuities are jointly invested at Sony Life.

(2) Status of Individual variable life insurance and individual variable annuities (Separate Account)(i) Policy amount in forcea) Individual variable life insurance(Number: Thousand, Amount: Millions of yen)

Category

As of March 31, 2010
NumberVariable life insurance（whole life type）
Variable life insurance（limited term type）
Variable life insurance（term type）
Total

As of March 31, 2011

AmountNumberAmount511

6,622,140

534

6,826,136

42

141,951

43

143,8931

58,8001

52,867556

6,822,892

579

7,022,897

Note: Amounts include the rider portion.

b) Individual variable annuities(Number: Thousand, Amount: Millions of yen)

Category
Individual variableannuities

As of March 31, 2010
NumberAs of March 31, 2011

Amount28

154,718

Note: The figure indicated in the amount column is for annuity resources.

19

NumberAmount28

154,322

(ii) Portfolio of separate account assets in individual variable life insurance and individual variable annuities(Millions of yen, %)Category

As of March 31, 2010
AmountAs of March 31, 2011%

Amount%Cash and deposits, call loans

21,064

5.6

23,544

5.9

Securities

350,302

93.8

372,801

93.6

JGBs, other bonds

118,82431.8

130,107

32.7

Japanese stocks

30,5728.2

28,6807.2

Foreign securities

110,758

29.6

118,088

29.7

Foreign bonds

38,931

10.4

38,012

9.5

Foreign stocks, etc.

71,82619.2

80,07620.1

90,14724.1

95,925

24.1

Loans

－

－

－

－

Other

2,237

0.6

1,778

0.4

－

－

－

－

373,604

100.0

398,124

100.0

Other securities

Reserve for possible loan losses
Total

Note: Assets relating to individual variable life insurance and individual variable annuities are jointly invested at Sony Life.

(iii) Net investment gains (losses) of separate account assets in individual variable life insurance and individual
variable annuities(Millions of yen, %)Category

For the year ended March 31, 2010

For the year ended March 31, 2011

Interest income and dividends

6,063

6,663

Gains on sale of securities

1,955

4,416

410

119

Valuation gains on securities

93,561

41,200Foreign exchange gains, net

0－Gains from derivatives, net

82－

Other investment income

0

4

8,959

2,987

50

518

Devaluation losses on securities

26,26848,779Foreign exchange losses, net

3,831

7,308

Losses from derivatives, net

0－Other investment expenses

205

279

Net investment gains (losses)

62,757(7,470)Gains on redemption of securities

Losses on sale of securities
Losses on redemption of securities

Note: Assets relating to individual variable life insurance and individual variable annuities are jointly invested at Sony Life.

20

12. Consolidated Summary(1) Key Performance Results(Millions of yen)

Category

For the year ended
March 31, 2010

For the year ended
March 31, 2011

Ordinary Revenues

882,045

900,359

Ordinary Profit

79,781

72,172Net Income

45,83939,221

Comprehensive Income
Category

As of March 31, 2010

Total Assets

30,547
As of March 31, 2011

4,286,045

4,721,641(2) Scope of Consolidation and Companies Accounted for under Equity Method
Number of consolidated subsidiaries

1

Number of non-consolidated subsidiaries accounted for under equity method0

Number of affiliated companies accounted for under equity method221

(3) Consolidated Balance Sheets(Millions of yen)
As ofMarch 31, 2010

As ofMarch 31, 2011

AmountAmountAssets:As ofMarch 31, 2011

AmountAmountLiabilities:

Cash and deposits

46,11235,578Call loans

91,80068,500Reserve for outstanding claims
Policy reserves

Monetary trusts

As ofMarch 31, 2010

Policy reserves and others:

4,012,335

4,404,830

21,42528,2603,985,833

4,371,731

5,076

4,839

288,772

276,475

3,538,090

4,015,294

Loans

127,615

134,439

Due to agencies

1,445

1,502

Tangible fixed assets

80,93776,029Due to reinsurers

716

684

Land

33,076

31,469Other liabilities

55,53966,018

Buildings

46,83943,694

Reserve for employees' retirement benefits

14,991

17,599Securities

Reserve for policyholders' dividends

Leased assets

272

230

Reserve for directors' retirement benefits

Other tangible fixed assets

749

635

Reserve for price fluctuations

Intangible fixed assets

13,863

18,391

Software13,815

18,346

Leased assets

0－

Other intangible assets

47

44

Due from reinsurers

Reserve for price fluctuations
Deferred tax liabilities
Deferred tax liabilities on land revaluation
Total Liabilities

118

143

9,637

16,768

9,637

16,768

0

－

706

693

4,095,492

4,508,240

120

84

Other assets

71,23956,314

Net Assets:

Deferred tax assets

27,70540,761

Common stock

70,00070,000

(212)

(228)

Capital surplus

5,865

5,865

Retained earnings

100,825

132,370

Total shareholders' equity
Net unrealized gains on other securities,
net of taxes
Land revaluation, net of taxes

176,690

208,235

15,501

6,996(1,475)(1,499)Foreign currency translation adjustments

(163)

(331)

Total accumulated other comprehensive
income13,862

5,165

Total Net Assets

190,553

213,401

Total Liabilities and Net Assets

4,286,045

4,721,641

Reserve for possible loan losses

Total Assets

4,286,045

4,721,641

22

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

For the year ended
March 31, 2010
Ordinary Revenues
Income from insurance premiums
Investment income
Interest income and dividends
Income from monetary trusts, net
Gains on sale of securities
Gains on redemption of securities
Other investment income
Gains on separate accounts, net
Other ordinary income
Ordinary Expenses
Insurance claims and other payments
Insurance claims
Annuity payments
Insurance benefits
Surrender payments
Other payments
Provision for policy reserves and others
Provision for reserve for outstanding claims
Provision for policy reserves
Interest on policyholders' dividend reserve
Investment expenses
Interest expenses
Losses on sale of securities
Devaluation losses on securities
Losses on redemption of securities
Foreign exchange losses, net
Provision for reserve for possible loan losses
Depreciation of real estate for rent and others
Other investment expenses
Losses on separate accounts, net
Operating expenses
Other ordinary expenses
Ordinary Profit
Extraordinary Gains
Gains on sale of fixed assets
Extraordinary Losses
Losses on sale or disposal of fixed assets
Impairment losses
Provision for reserve for price fluctuations
Provision for reserve for price fluctuations
Loss on adjustment for changes of accounting standard
for retirement obligations
Provision (Reversal) for Reserve for Policyholders' Dividends
Income Before Income Taxes
Income Taxes - current
Income Taxes -deferred
Income Taxes -total
Income Before Minority Interests
Net Income

For the year ended
March 31, 2011

882,045
700,158
175,640
70,86422,88715,1533,939
37
62,757
6,247
802,264
274,285
64,8597,742
34,670162,697
4,316
395,5832,311
393,267
4
20,62729
10,078
－
361
870
3
2,763
6,519
－
97,003
14,76379,781
0
0
6,107
116
5
5,984
5,984

10,248828,186
297,973
76,514
8,224
38,346
170,720
4,167
392,766
6,834
385,910
21
19,389
56
1,867
348
23
618
20
2,551
6,433
7,470
99,537
18,52072,172
0
0
8,735
22
1,291
7,131
7,131

－

290

3,516
70,157
22,688
1,630
24,318

1,257
62,17931,374(8,416)
22,95739,221
39,22145,83923

900,359
770,401
119,710
87,695
6,983
25,03001-

13. (Reference 1) Results for the Three Months Ended March 31, 2011
(1) New Policy Amount(Number: Thousand, Amount: 100 millions of yen, %)For the three months
ended March 31, 2010
Number

For the three months
ended March 31, 2011

AmountNumberAmount% YoY change% YoY change

140

10,203

135

96.5%

9,611

94.2%

Individual annuities

1

84

1

109.3%

85

101.4%

Annualized premiums for
new policies

-

181

-

-

172

95.2%

Of which, medical
protection, living benefit
protection, etc.

-

40

-

-

39

99.5%

Individual life insurance

Notes:
1. Annualized premiums refer to an amount that is calculated by multiplying individual premium amounts by a coefficient that differs depending on the premium
payment methods, thereby converting the figure to a per-year premium. (For lump-sum payment policies, premiums are divided by the number of coverage years.)
2. “Medical protection, living benefit protection, etc.” indicates the portion of annualized premiums for medical protection benefits (hospitalization benefits,surgical procedure benefits, etc.) and products with living benefit protection (benefits for specific illness, nursing care benefits, etc.).

(2) Major P/L Items(Millions of yen, %)For the three months
ended March 31, 2011

For the three months
ended March 31, 2010

% YoY change
Income from insurance
premiums

172,400

204,799

109.0%

Insurance claims and otherpayments

76,447

88,206126.9%

24

14. (Reference 2) Holdings of Securitized Papers and Other Sub-prime Related Investments
Sony Life’s holdings of securitized papers and other sub-prime related investments as of March 31, 2011, are as follows. Sony Life holds
no sub-prime related investments.

(1) Special-purpose entities (SPEs)
Fair value

－
－
－
－
－
－
－

Special purpose entities (SPEs)
ABCP
facilitated by Sony Life
SIV
facilitated by Sony Life
Other
facilitated by Sony Life

Unrealized
gains (losses)
－
－
－
－
－
－
－

(100 millions of yen)
Gains (losses)
recorded in income
－
－
－
－
－
－
－

Unrealized
gains (losses)
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

(100 millions of yen)
Gains (losses)
recorded in income
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

(2) Collateralized debt obligations (CDO)
Fair value

－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

Collateralized debt obligations (CDO)
ABS
CDO
Seniorsub-prime (Alt-A exposure)
Mezzanine
sub-prime (Alt-A exposure)
Equitysub-prime (Alt-A exposure)
CLO

SeniorMezzanine
EquityCBO

SeniorMezzanine
EquityOther

SeniorMezzanine
Equity(3) Other sub-prime (Alt-A exposure)
Fair value

－
－
－
－
－
－

Other sub-prime (Alt-A exposure)Non-securitized loans
RMBS
Derivatives
Commitment line
Other
25

Unrealized
gains (losses)
－
－
－
－
－
－

(100 millions of yen)
Gains (losses)
recorded in income
－
－
－
－
－
－

(4) Commercial mortgage-backed securities (CMBS)
Fair value
As of March 31, 2010

Commercial mortgage-backed securities (CMBS)
Japan
USA
EU
UK
Other

－
－
－
－
－
－

－
－
－
－
－
－

Unrealized
gains (losses)
－
－
－
－
－
－

(100 millions of yen)
Gains (losses)
recorded in income
－
－
－
－
－
－

Unrealized
gains (losses)
－
－
－
－
－
－

(100 millions of yen)
Gains (losses)
recorded in income
－
－
－
－
－
－

(5) Leveraged financeFair value
As of March 31, 2010

Leveraged financeCommunications
Electronics
Entertainment
Services
Other

－
－
－
－
－
－

－
－
－
－
－
－

(6) Other notes
Sony Life holds principal protected 30-year notes with NIKKEI 225 index-linked coupons (fair market value of ¥46.4 billion andunrealized gains of ¥4.0 billion as of March 31, 2011). These amounts are included in “Net unrealized gains (losses) on other securities,(before taxes)” of Sony Life as of March 31, 2011.

26