August 8, 2019Sony Financial Holdings Inc.

Summary Information on Sony Assurance’s Financial Results
for the Three Months Ended June 30, 2019

<Contents>

1. Balance Sheets

P.2

2. Statements of Income

P.3

3. Financial Summary

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
original Japanese version and English translation version, the original Japanese version always prevails.

11. Balance Sheets
As ofMarch 31, 2019

(Millions of yen)
As ofJune 30, 2019

Assets:Cash and deposits

20,04325,826

Securities

157,959

153,937

Tangible fixed assets

1,689

1,659

Intangible fixed assets

10,012

10,019Other assets

18,60917,336

Deferred tax assets

11,328

11,284

Total Assets

219,643

220,064

168,494

171,869

Reserve for outstanding losses and claims

40,67439,878Underwriting reserves

127,819

131,990

13,018

10,273

Income taxes payable

1,938

1,241

Others11,0809,031

Reserve for employees’ retirement benefits

1,857

1,854

Reserve for employees’ bonuses1,236

655

Reserve under the special laws

238

246

Reserve for price fluctuations

238

246

184,844

184,898

Common stock

20,00020,000Capital surplus

3,389

3,389

Retained earnings

10,46010,732

Total shareholders' equity

33,84934,121

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

949

1,044

Total valuation and translation adjustments

949

1,044

34,79835,166219,643

220,064

Liabilities:
Underwriting reserves

Other liabilities

Total Liabilities
Net Assets:
Shareholders’ equity

Valuation and translation adjustments

Total Net AssetsTotal Liabilities and Net Assets

22. Statements of Income(Millions of yen)
For the three months ended
June 30, 2018
Ordinary Revenues

For the three months ended
June 30, 201929,702

31,86529,067

31,23329,05130,418Interest and dividends on deposits of premiums

1619

Reversal of reserve for outstanding losses and claims

－795

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)

12

4

25,90027,973

Underwriting expenses

19,31020,918Net losses paid

13,07614,183

Loss adjustment expenses

1,963

2,088

Net commissions and brokerage fees

483

475

Provision for reserve for outstanding losses and claims

15－

3,771

4,170

6,590

7,054

00

3,801

3,891

Extraordinary Gains－－

Extraordinary Losses

1025

Losses on sale or disposal of fixed assets

218

Provision for reserve under the special laws

77

Provision for reserve for price fluctuations

7

7

Income Before Income Taxes

3,790

3,865

Income Taxes—Current

1,144

1,087

Income Taxes—Deferred(76)6Total Income Taxes

1,068

1,093Net Income

2,722

2,772

Underwriting income
Net premiums written

Investment income

Other ordinary income
Ordinary Expenses

Provision for underwriting reserves
Operating, general and administrative expenses
Other ordinary expenses
Ordinary Profit3

3. Financial Summary (Comparison to previous year)(Millions of yen)
For the three months
ended
June 30, 2018

For the three months
ended
June 30, 2019

YoY change(Amount)

YoY change(%)

Gross direct premiums written

28,80230,347+1,545+5.4

Direct premiums written

28,80230,347+1,545+5.4

29,067

31,233+2,165+7.5

29,05130,418+1,366+4.7

Underwriting expenses

19,31020,918+1,608+8.3

Net losses paid

13,07614,183+1,107+8.5

Loss adjustment expenses

1,963

2,088+125+6.4483

475(7)

(1.5)

622

628

+5+0.9Interest income and dividends

340

336(4)(1.3)

Gains on sale of securities

297

311

+13+4.4－－－－

Operating, general and administrative expenses

6,590

7,054+464+7.0Operating, general and administrative
expenses related to underwriting

6,574

7,037+462+7.0

124(8)(66.3)

3,801

3,891+90+2.4

3,182

3,276+94+3.0

Extraordinary Gains－－－－Extraordinary Losses

1025+15+151.7

Extraordinary gains (losses), net(10)

(25)

(15)

－

Income Before Income Taxes

3,790

3,865+75+2.0

Income Taxes –Current

1,144

1,087(57)(5.0)

Income Taxes –Deferred(76)

6+82

－

Total Income Taxes

1,068

1,093+25+2.4

Net Income

2,722

2,772+49+1.8

Net loss ratio

51.8%

53.5%

Net expense ratio

24.3%

24.7%

Adjusted ordinary profit

4,727

4,865+138+2.9E.I. loss ratio

56.9%

56.3%

Underwriting income
Net premiums written

Net commissions and brokerage fees
Investment income

Investment expenses

Other ordinary income (losses), net
Ordinary Profit
Underwriting profit

Notes:1. Underwriting profit = Underwriting income – (Underwriting expenses + Operating, general and administrative expenses related to underwriting) ± Other income (expenses)
Other income (expenses) is the amount equivalent to the corporate income taxes for compulsory automobile liability insurance, etc.
2. Net loss ratio = (Net losses paid + Loss adjustment expenses) / Net premiums written x 100
3. Net expense ratio = (Net commissions and brokerage fees + Operating, general and administrative expenses related to underwriting) / Net premium written x 100
4. Adjusted ordinary profit = Ordinary profit + Provision for catastrophe reserve＊Provision for catastrophe reserve is described as positive amount.
5. E.I. loss ratio = (Net losses paid + Provision for reserve for outstanding losses and claims + Loss adjustment expenses) / Earned premiums x 100＊Earthquake insurance and compulsory automobile liability insurance are excluded from the above calculation.

44. Premiums and Losses Paid by Type of Policy
Direct premiums written(Millions of yen)
For the three months ended
June 30, 2018
AmountComposition

54

0.2

For the three months ended
June 30, 2019

YoY change%Fire

AmountComposition

374

1.2

%+4.2

YoY change%%+582.7

－

－－－－

－

Personal accident

2,163

7.5

(0.7)

2,277

7.5

+5.3

Voluntary automobile

26,583

92.3+6.2

27,695

91.3

+4.2

－

－－－－

－

28,802100.0+5.7

30,347

100.0

+5.4

MarineCompulsory automobile liability

Total

Net premiums written(Millions of yen)

For the three months ended
June 30, 2018
AmountComposition

40.0

For the three months ended
June 30, 2019

YoY change%

Fire

AmountComposition

197

0.6%
+16.5

YoY change%%+3,985.5－－－－－－

Personal accident

2,221

7.6(0.4)

2,244

7.4+1.0

Voluntary automobile

26,524

91.3+6.2

27,621

90.8

+4.1

300

1.0(14.8)

354

1.2

+18.1

29,051

100.0

+5.4

30,418

100.0

+4.7

MarineCompulsory automobile liability

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

For the three months ended
June 30, 2018
AmountYoY change

1+62.7For the three months ended
June 30, 2019

Net loss ratio%

Fire
MarinePersonal accident
Voluntary automobile
Compulsory automobile liability

Total

AmountYoY change

3+96.6%236.4

Net loss ratio
%

%
8.3

1(26.8)－(3)(321.8)

－

691

+7.1

34.3

763

+10.5

37.2

12,052+7.4

52.5

13,097

+8.7

54.7

329

+5.5

109.5

323

(1.6)

91.2

13,076+7.4

51.8

14,183+8.5

53.5

5

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

As of March 31, 2019

As of June 30, 2019

60,01064,962

31,34934,121

Reserve for price fluctuations

238

246

Contingency reserve

122

125

Catastrophe reserve

24,63625,609

－

－

1,186

1,305

－

－

Excess refund reserve－－

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

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

Others(B) Total non-consolidated risk

－－

2,476

3,554

14,76014,883

13,181

13,31400

Ordinary insurance risk

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

Third-sector insurance risk

(R2)

Assumed interest rate risk

(R3)

123

125

Asset management risk

(R4)

1,861

1,820

Business management risk

(R5)

325

327

(R6)
Major catastrophe risk(C) Non-consolidated solvency margin ratio[(A)／{(B)×1/2}]×100

1,105

1,100

813.0 %

872.9 %

Note: The above figures are calculated based on provisions in Articles 86 and 87 of the Ordinance for Enforcement of the Insurance
Business Act of Japan and the Ministry of Finance Public Notice No. 50 of 1996.
A part of calculations for non-consolidated solvency margin ratio as of June 30, 2019 is calculated according tosimplified methods in major catastrophe risk. The figure is assumed to be equivalent to the amount as of March 31, 2019.

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