August 8, 2014
Sony Financial Holdings Inc.

Summary Information on Sony Assurance’s Financial Results
for the Three Months Ended June 30, 2014
<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.61

1. Balance Sheets(Millions of yen)
As of March 31, 2014

As of June 30, 2014

Assets:Cash and deposits

6,912

6,113

101,245

104,625

Tangible fixed assets

3,105

3,341

Intangible fixed assets

8,283

8,495

Other assets

18,45017,075

Deferred tax assets

4,716

4,773

142,714

144,425

110,741

113,233

Reserve for outstanding losses

32,69832,340Underwriting reserves

78,04380,893

8,543

6,235

Income taxes payable

2,159

1,047

Others

6,384

5,187

Reserve for employees’ retirement benefits

969

1,026

Reserve for directors’ retirement benefits

2224

Reserve for employees’ bonuses

918

443

Reserve for price fluctuations and others

101

106

101

106

121,295

121,071

Common stock

20,00020,000Capital surplus

20,00020,000Retained deficits(18,828)(16,990)

Total shareholders’ equity

21,171

23,009Net unrealized gains on other securities, net of taxes

246

344

Total valuation and translation adjustments

246

344

21,41823,354

142,714

144,425

Securities

Total Assets
Liabilities:
Underwriting reserves

Other liabilities

Reserve for price fluctuations
Total Liabilities
Net Assets:
Shareholders’ equity

Valuation and translation adjustments

Total Net Assets
Total Liabilities and Net Assets

22. Statements of Income(Millions of yen)
For the three months ended
June 30, 2013
Ordinary Revenues

For the three months ended
June 30, 2014

23,091

24,11522,80323,80322,741

23,434(Interest and dividends on deposits of premiums)

811(Reversal of reserve for outstanding losses)

52357

283

303

(Interest income and dividends)

291

310

(Gains on sale of securities)－

3(Transfer to interest and dividends on deposits of premiums)

(8)

(11)

4

8

21,74921,405

Underwriting expenses

16,73016,050(Net losses paid)

11,745

11,170(Loss adjustment expenses)

1,490

1,656

(Net commissions and brokerage fees)

418

372

(Provision for underwriting reserves)

3,075

2,850

10

－05,014

5,352

32

Ordinary Profit

1,342

2,710

Extraordinary Gains－－

Extraordinary Losses

322

Losses on sale or disposal of fixed assets－16

Provision for reserve for price fluctuations and others

353

5

1,338

2,687

Income Taxes –current

453

926

Income Taxes –deferred15(92)Total Income Taxes

468

833

Net Income

869

1,853

Underwriting income(Net premiums written)

Investment income

Other ordinary income
Ordinary Expenses

Investment expenses(Losses on sale of securities)

Operating, general and administrative expenses
Other ordinary expenses

Provision for reserve for price fluctuations

Income Before Income Taxes

33. Financial Summary (Year-on-Year Comparison)(Millions of yen)
For the three months
ended
June 30, 2014

For the three months
ended
June 30, 2013

Change(Amount)

Change(%)

Gross direct premiums written

22,42023,117696

3.1 %(Direct premiums written)

22,42023,117696

3.1

22,80323,803999

4.4

22,741

23,434692

3.0

Underwriting expenses

16,73016,050

(679)

(4.1)

(Net losses paid)

11,745

11,170

(575)

(4.9)

(Loss adjustment expenses)

1,490

1,656

166

11.2

(Net commissions and brokeragefees)

418

372

(45)

(10.9)

283

303

20

7.2

291

310

18

6.4

－

3

3－

10(0)

(99.7)－

00－

Operating, general and administrative expenses

5,014

5,352

337

6.7

(Operating, general and administrative
expenses related to underwriting)

4,992

5,335

342

6.9

16

4

250.6

1,342

2,710

1,367

101.9

1,080

2,417

1,336

123.7

－

－

－

－

Extraordinary Losses

322

18

470.9

Extraordinary gains (losses), net

(3)

(22)

(18)

－

1,338

2,687

1,349100.8

Income taxes -current

453

926

473

104.3

Income taxes -deferred15(92)(108)(697.4)

Total income taxes

468

833

364

77.8

Net Income

869

1,853

984

113.2

Net loss ratio

58.2%

54.7%

Net expense ratio

23.8%

24.4%

Underwriting income(Net premiums written)

Ordinary Income (expenses)

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

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

Extraordinary Gains

Income before income taxes

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 loss 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 three months ended
June 30, 2013
Amount

For the three months ended
June 30, 2014

Composition YoY Change%

AmountComposition%

YoY Change%

%

Fire

55

0.2(13.2)

62

0.3

13.2

Marine－－－－－－

Personal accident

2,044

9.1

5.9

2,134

9.2

4.4

Voluntary automobile

20,321

90.6

5.7

20,920

90.5

2.9－

－－－－－

22,420100.0

5.7

23,117100.0

3.1

Compulsory automobile liability

TotalNet Premiums Written(Millions of yen)

For the three months ended
June 30, 2013
Amount

For the three months ended
June 30, 2014

Composition YoY Change%

AmountComposition%

YoY Change%

%

Fire

74

0.3

8.5

80.0(88.4)

Marine

44

0.2

3.1

50

0.2

13.5

Personal accident

2,124

9.3

6.1

2,218

9.5

4.4

Voluntary automobile

20,25789.1

5.8

20,868

89.0

3.0

241

1.1

10.8

289

1.2

19.9

22,741100.0

5.9

23,434100.0

3.0Compulsory automobile liability

Total
Net Loss Paid

(Millions of yen)

For the three months endedJune 30, 2013
Amount

For the three months ended
June 30, 2014

YoY Change Net loss ratio%

AmountYoY Change%

Net loss ratio%%

Fire0(63.1)

3.6

1

1,311.8

68.6

Marine32(73.6)

73.1

47

46.3

94.2

Personal accident
Voluntary automobile
Compulsory automobile liability

Total

463(0.9)

24.8

541

16.8

27.5

10,994

3.4

61.3

10,288(6.4)

56.9

255

6.6

105.7

291

14.3

100.7

11,7452.5

58.2

11,170(4.9)

54.7

5

5. Non-consolidated Solvency Margin Ratio(Millions of yen)
As of March 31, 2014

As of June 30, 2014

30,11832,827

21,171

23,009Reserve for price fluctuations

101106

Contingency reserve

7375

Catastrophe reserve

8,451

9,188

General reserve for possible loan losses－－

Net unrealized gains on other securities(before subtracting tax effects)

320

447

－
－
－－－－

－

－

－
－－
－

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

11,416

11,525

Ordinary insurance risk

（Ｒ1）

10,386

10,388

Third-sector insurance risk

（Ｒ2）

－－

Assumed interest rate risk （Ｒ3）

77

79

（Ｒ4）

662

715

Business management risk （Ｒ5）353

357（Ｒ6）649749527.6 %

569.6 %(A) Total non-consolidated solvency margin
Capital or treasury

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

Asset management risk
Major catastrophe risk22

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

Note: The figures were calculated based on provisions in Articles 86 and 87 of the Ordinance for Enforcement of the Insurance Business Act ofJapan and Ministry of Finance Public Notice No. 50 of 1996. A part of calculations for non-consolidated solvency margin ratio as ofJune 30, 2014 is calculated according to simplified methods in major catastrophe risk. The figure is assumed to be equivalent to theamount as of March 31, 2014.
<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 maturityon savings-type insurance. Non-life insurance companies must also maintain sufficient ability to pay in the event of a major catastrophe or a dramatic
drop in the value of the assets they hold—risk events outside the normal scope of expectations.
Total risk (item (B) in the table above) indicates dangers outside the general scope of expectations. The non-consolidated solvency margin ratio(item (C) in the table above) is an indicator of an insurer’s ability to pay, calculated as prescribed by the Insurance Business Act of Japan, basedon its percentage holdings of capital and other reserves (in other words, the total solvency margin: as indicated by (A) above)“Risk events outside the normal scope of expectations” refers to the total of the amounts represented by the following risks;(1) Insurance underwriting risk
:Risk outside the scope of risk incorporated into the rate of accident occurrence (excluding major(Ordinary insurance risk)
catastrophe risk)(Third-sector insurance risk)(2) Assumed interest rate risk

(4) Business management 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 andother assets:Unexpected risk to business management other than (1) through (3) above and (5)(5) Major catastrophe risk

:Risk arising from major catastrophes (such as the Great Kanto Earthquake and the Ise Bay Typhoon)(3) Asset management risk

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 theinsurer’s net assets (excluding the amount of expected outflow from the company), reserves (such as the reserve for price fluctuations and catastrophereserve) 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. If
this ratio is 200% or higher, an insurer is judged to have sufficient ability to satisfy claims and other payments.

6