May 15, 2015
Sony Financial Holdings Inc.

Summary Information on Sony Assurance’s Financial Results
for the Year Ended March 31, 2015
<Contents>
1. Balance Sheets

P.2

2. Statements of Income

P.4

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

P.5

4. Premiums and Losses Paid by Type of Policy

P.7

5. Risk-Monitored Loans

P.7

6. Securities

P.8

7. Non-consolidated Solvency Margin Ratio

P.911. Balance Sheets(Millions of yen)
As of March 31, 2014

As of March 31, 2015

Assets:Cash and deposits

6,912

10,73800Deposits

6,911

10,738

Securities

101,245111,809

Japanese government bonds

79,68585,698Japanese municipal bonds

11,57915,218Japanese corporate bonds

7,661

6,760

Japanese stock

1,016

2,548

Foreign securities

197197

Other securities

1,105

1,385

Tangible fixed assets

3,105

3,539

Buildings

243

228

Construction in progress

947

1,666

Other tangible fixed assets

1,914

1,644

8,283

7,084

Software

5,318

3,949

Software in progress

2,963

3,134

10

18,45019,294

Accrued premiums

1,250

1,265

Due from reinsurers1093

Due from foreign reinsurers

922

12,304

12,931

Accrued income

132135Deposits

448

446

4,294

4,399

4,716

5,452

142,714

157,919

Cash

Intangible fixed assets

Other intangible fixed assets
Other assets

Accounts receivable

Suspense payment
Deferred tax assets
Total Assets2

(Millions of yen)
As of March 31, 2014

As of March 31, 2015

Liabilities:
Underwriting reserves

110,741

122,173

Reserve for outstanding losses

32,69835,665

Underwriting reserves

78,04386,508

8,543

8,787

Due to reinsurers

67

78

Due to foreign reinsurers

1611

Income taxes payable

2,159

2,005

Deposits received

1215

Accounts payable

2,3642,678

Suspense receipt

3,923

3,997

Reserve for employees’ retirement benefits

969

1,130

Reserve for directors’ retirement benefits

2233

Reserve for employees’ bonuses

918

927

Reserve for price fluctuations and others

101

124

101

124

121,295

133,178

20,00020,000Capital reserve

20,00020,000Total capital surplus

20,00020,000

Other retained deficits(18,828)(16,610)

Unappropriated retained deficits(18,828)(16,610)

Total retained deficits(18,828)(16,610)

Total shareholders’ equity

21,171

23,389Net unrealized gains on other securities, net oftaxes

246

1,351

Total valuation and translation adjustments

246

1,351

Total Net Assets

21,41824,741

Total Liabilities and Net Assets

142,714

157,919

Other liabilities

Reserve for price fluctuations
Total Liabilities
Net Assets:
Shareholders’ equity
Common stock
Capital surplus

Retained deficits

Valuation and translation adjustments32. Statements of Income(Millions of yen)
For the year ended
March 31, 2014
Ordinary Revenues

For the year ended
March 31, 2015

89,86493,022

88,63991,761

88,60091,712(Interest and dividends on deposits of premiums)

3948(Other underwriting income)

－0

1,198

1,235

1,209

1,268

(Gains on sale of securities)

2515(Gains on redemption of securities)

3－

(39)

(48)

25

25

86,86088,812

Underwriting expenses

65,46965,668(Net losses paid)

46,18345,985(Loss adjustment expenses)

6,367

6,857

(Net commissions and brokerage fees)

1,387

1,392

(Provision for reserve for outstanding losses)

4,098

2,966

(Provision for underwriting reserves)

7,433

8,465

00

71

(Losses on sale of securities)

51(Losses on redemption of securities)

2－

21,37823,13547

Ordinary Profit

3,003

4,209

Extraordinary Gains－－Extraordinary Losses

106503Losses on sale or disposal of fixed assets

85480

Provision for reserve for price fluctuations and others

2122

21

22

Income Before Income Taxes

2,897

3,706

Income Taxes –current

1,916

2,639

Income Taxes –deferred(683)(1,166)

Total Income Taxes

1,232

1,472

Net Income

1,664

2,233

Underwriting income(Net premiums written)

Investment income(Interest income and dividends)(Transfer to interest and dividends on deposits of premiums)

Other ordinary incomeOrdinary Expenses(Other underwriting expenses)

Investment expenses

Operating, general and administrative expenses
Other ordinary expenses

Provision for reserve for price fluctuations

43. Financial Summary (Year-on-Year Comparison)(Millions of yen)
For the year ended
March 31, 2014

For the year ended
March 31, 2015

Gross direct premiums written

87,37090,495

3,124

3.6 %

(Direct premiums written)

87,37090,495

3,124

3.6

88,63991,761

3,121

3.5

88,60091,712

3,111

3.5

Underwriting expenses

65,46965,668198

0.3(Net losses paid)

46,18345,985

(197)

(0.4)

(Loss adjustment expenses)

6,367

6,857

489

7.7

(Net commissions and brokerage fees)

1,387

1,392

4

0.3

1,198

1,235

36

3.0

1,209

1,268

58

4.9

25

15(9)

(37.5)

71(6)(85.7)

51(4)(79.7)

Operating, general and administrative expenses

21,37823,1351,756

8.2(Operating, general and administrativeexpenses related to underwriting)

21,29323,053

1,760

8.3

21

17(3)

(16.4)

3,003

4,209

1,205

40.1

1,874

3,044

1,170

62.4

－－－－

Extraordinary Losses

106503396

372.2

Extraordinary gains (losses), net(106)

(503)

(396)

－

Income before income taxes

2,897

3,706

808

27.9

Income taxes -current

1,916

2,639

722

37.7

Income taxes -deferred(683)(1,166)(483)－

Total income taxes

1,232

1,472

239

19.4

Net Income

1,664

2,233

569

34.2

Net loss ratio

59.3%

57.6%

Net expense ratio

25.6%

26.7%

Yield on investments (income basis)

1.17%

1.10%

Yield on investments (realized basis)

1.19%

1.11%

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

Change(Amount)

Change(%)

Ratios(Reference) Yield on investments (market value basis) : 0.93% for the year ended March 31, 2014 and 2.44% for the year ended March 31, 2015.
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. Calculation methods for yield on investments are described in separate attachments.

5

Attachment

Calculation methods for yield on investments
1. Yield on investments (income basis)
The results of investment in assets are indicated as income revenues (interest income and dividends).
Interest income and dividends on investment assets is the numerator, and acquisition cost is thedenominator.
• Numerator: Interest income and dividends• Denominator: Average balance of either acquisition cost or amortized cost
2. Yield on investments (realized basis)
The results of investment in assets are indicated as the contribution to net income (loss) for the period(statements of income).
Realized profit and loss is the numerator, and acquisition cost is the denominator.
• Numerator: Investment income + Interest and dividends on deposits of premiums – Investment expenses• Denominator: Average balance of either acquisition cost or amortized cost

3. (Reference) Yield on investments (market value basis)
An indicator of investment efficiency based on market value. Realized profit and loss plus net unrealized
gains is the numerator, and market value is the denominator.
• Numerator = (Investment income + Interest and dividends on deposits of premiums – Investment expenses)+ (Net unrealized gains at end of period* – Net unrealized gains at end of previous period*)• Denominator =Average balance according to the acquisition cost or amortized cost
+ Net unrealized gains on other securities at end of previous period**Amounts before tax deductions

64. Premiums and Losses Paid by Type of Policy
Direct Premiums Written(Millions of yen)
For the year ended
March 31, 2014
Amount

For the year ended
March 31, 2015

Composition YoY Change%

AmountComposition%

YoY Change%%

Fire275

0.3

16.4

332

0.4

21.0

Marine－－－－－－Personal accident

8,360

9.6

5.8

8,576

9.5

2.6

Voluntary automobile

78,73590.1

5.8

81,58590.2

3.6

Compulsory automobile liability

Total－－－－－－

87,370100.0

5.9

90,495100.0

3.6

Net Premiums Written(Millions of yen)

For the year ended
March 31, 2014
Amount

For the year ended
March 31, 2015

Composition YoY Change%

FireMarine

AmountComposition

450.0(56.4)%

1040.1

19.9

YoY Change%

%

153

0.2

8.0

1100.1(27.9)

Personal accident

8,613

9.7

5.8

8,845

9.6

2.7

Voluntary automobile

78,47388.6

5.8

81,37588.7

3.7

Compulsory automobile liability

1,255

1.4

16.8

1,335

1.5

6.4

Total

88,600100.0

6.0

91,712100.0

3.5

Net Losses Paid(Millions of yen)

For the year ended
March 31, 2014
Amount

For the year ended
March 31, 2015

YoY Change Net loss ratio%

AmountYoY Change%

Net loss ratio
%%

Fire3

207.2

12.1

3(6.3)

45.3

Marine129(30.4)

84.3

90(30.1)

81.7
28.7

Personal accident

2,066

5.5

27.2

2,265

9.7

Voluntary automobile

42,860

(2.6)

62.4

42,414

(1.0)

60.2

Compulsory automobile liability

1,123

11.8

89.5

1,212

7.9

90.8

Total

46,183

(2.1)

59.3

45,985(0.4)

57.6

5. Risk-Monitored Loans
None

7

6. Securities(1) Trading-purpose securities
Not applicable(2) Held-to-maturity securities(Millions of yen)
As of March 31, 2014

Fair value is higher
than balance sheet
amountFair value is lower
than balance sheet

JGBs, otherbonds
Foreignsecurities
Subtotal
JGBs, otherbonds

Total

As of March 31, 2015

Balance sheet
amountFair value

Difference

Balance sheet
amountFair value

Difference

73,217

77,844

4,626

68,986

77,952

8,965

197

216

18197

222

24

73,41478,0604,645

69,18378,174

8,990

873

869

(3)

－－－

74,28878,9304,642

69,18378,174

8,990(3) Available-for-sale securities(Millions of yen)
As of March 31, 2014

Balance sheet amountis higher thanacquisition cost

JGBs, otherbonds
Japanesestocks
Subtotal

JGBs, otherbonds
Balance sheet amountis lower than
Othersacquisition cost
Subtotal
Total

As of March 31, 2015

Balance sheet
amountAcquisition
cost

Difference

Balance sheet
amountAcquisition
cost

Difference

19,414

19,34173

30,042

29,951

91

1,016

729

286

2,548

729

1,819

20,43020,071359

32,59130,681

1,910

5,421

5,425

(3)

8,648

8,658

(10)

1,105

1,105－

1,385

1,385－

6,526
26,9576,530
26,601(3)356

10,03342,625

10,04440,725(10)1,899(4) Available-for-sale securities sold during the year
(Millions of yen)
For the year ended March 31, 2014

JGBs, other bonds

For the year ended March 31, 2015

Amount ofsales

Total gains
on salesTotal losses
on saleAmount ofsales

Total gains
on salesTotal losses
on sale

4,121

25

5

6,952

15

18

7. Non-consolidated Solvency Margin Ratio(Millions of yen)(A) Total non-consolidated solvency margin
Capital or treasury
Reserve for price fluctuations

As of March 31, 2014As of March 31, 2015

30,11836,65021,171

23,389101

124

Contingency reserve

7382

Catastrophe reserve

8,451

11,344General reserve for possible loan losses－－

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

320

1,709

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

22

(R 1+R2) +(R3+R4) +R5+R6

11,416

11,641

Ordinary insurance risk

（Ｒ1）

10,386

10,465

Third-sector insurance risk

（Ｒ2）

－－

Assumed interest rate risk （Ｒ3）7786（Ｒ4）

662

1,101

Business management risk （Ｒ5）

353

371

（Ｒ6）

649

737

527 6 %
527.6

629.6
629 6 %

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

Note: The figures were calculated based on the 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.
<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 pay in the event of a major catastrophe ora 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 non-consolidated 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 andcatastrophe 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. If
this ratio is 200% or higher, an insurer is judged to have sufficient ability to satisfy claims and other payments.
9