November 12, 2015
Sony Financial Holdings Inc.

Summary Information on Sony Assurance’s Financial Results
for the Six Months Ended September 30, 2015
<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. Risk-monitored Loans

P.5

6. Securities

P.6

7. Non-consolidated Solvency Margin Ratio

P.7

11. Balance Sheets
As of March 31, 2015

(Millions of yen)
As ofSeptember 30, 2015

Assets:Cash and deposits

10,738

6,979

Securities

111,809

123,743Tangible fixed assets

3,539

4,083

Intangible fixed assets

7,084

7,050

Other assets

19,294

17,486

Accounts receivable

12,931

10,768Others

6,363

6,718

5,452

5,563

157,919

164,906

122,173

128,307

Reserve for outstanding losses

35,66536,921

Underwriting reserves

86,50891,385

8,787

7,074

Income taxes payable

2,005

1,279

Others

6,781

5,795

Reserve for employees’ retirement benefits

1,130

1,199

Reserve for directors’ retirement benefits

33

37

Reserve for employees’ bonuses

927

938

Reserve for price fluctuations and others124136

124

136

133,178

137,694

Common stock

20,00020,000Capital surplus

20,0003,389

Retained earnings (deficits)(16,610)

1,991

Total shareholders’ equity

23,38925,380Net unrealized gains (losses) on other securities, netof taxes

1,351

1,831

Total valuation and translation adjustments

1,351

1,831

24,741

27,212

157,919

164,906

Deferred tax assets
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 six months ended
September 30, 2014
Ordinary Revenues

For the six months ended
September 30, 2015

46,40648,25045,77447,60145,75247,574

22

27

617

631

(Interest income and dividends)

626

648

(Gains on sale of securities)

129(22)

(27)

14

17

42,97145,498Underwriting expenses

32,02733,468(Net losses paid)

22,42023,033(Loss adjustment expenses)

3,397

3,568

701

732

(Provision for reserve for outstanding losses)

1,105

1,256

(Provision for underwriting reserves)

4,401

4,877

0

20

2

10,94012,02532

Ordinary Profit

3,434

2,751

Extraordinary Gains－－

Extraordinary Losses

28

12Losses on sale or disposal of fixed assets

170Provision for reserve for price fluctuations and others

1112

11

12

Income Before Income Taxes

3,406

2,738

Income Taxes –current

1,742

1,052

Income Taxes –deferred

(728)

(305)

Total Income Taxes

1,014

747

Net Income

2,392

1,991

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

Other ordinary income
Ordinary Expenses(Net commissions and brokerage fees)

Investment expenses(Losses on sale of securities)
Operating, general and administrative expenses
Other ordinary expenses

Provision for reserve for price fluctuations33. Financial Summary (Year-on-Year Comparison)(Millions of yen)
For the six months ended For the six months ended
September 30, 2014
September 30, 2015

Change(Amount)

Change(%)

Gross direct premiums written

45,06946,963

1,893

4.2(Direct premiums written)

45,06946,963

1,893

4.2

45,77447,601

1,826

4.0

45,75247,5741,821

4.0

Underwriting expenses

32,02733,4681,440

4.5(Net losses paid)

22,42023,033612

2.7(Loss adjustment expenses)

3,397

3,568

171

5.0

701

732

30

4.3

617

631

14

2.3

(Interest income and dividends)

626

648

22

3.5

(Gains on sale of securities)

12

9(2)

(23.1)

02

2

87,239.7

02

287,239.7

10,94012,025

1,084

9.9

10,902

11,988

1,085

10.0

11

15

4

36.2

3,434

2,751

(683)

(19.9)

2,843

2,144(699)(24.6)

Extraordinary Gains－－－－Extraordinary Losses

2812(15)(55.9)

Extraordinary gains (losses), net(28)

(12)

15

－

Income before income taxes

3,406

2,738(667)(19.6)

Income taxes -current

1,742

1,052(689)(39.6)

Income taxes -deferred(728)

(305)

422－

Total income taxes

1,014

747(266)(26.3)Net Income

2,392

1,991(400)(16.8)

RatiosNet loss ratio

56.4%

55.9%

Net expense ratio

25.4%

26.7%

Underwriting income(Net premiums written)

Ordinary Income (expenses)(Net commissions and brokerage fees)

Investment income

Investment expenses(Losses on sale of securities)
Operating, general and administrative expenses(Operating, general and administrative
expenses related to underwriting)

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

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 six months ended
September 30, 2014
Amount

For the six months ended
September 30, 2015

Composition YoY Change%

AmountComposition%

YoY Change%%

Fire1190.3

3.3

199

0.4

66.2

Marine－－－－－－

Personal accident

4,277

9.5

3.7

4,321

9.2

1.0

Voluntary automobile

40,671

90.2

3.2

42,442

90.4

4.4

－－－－

－－

45,069100.0

3.3

46,963100.0

4.2

Compulsory automobile liability

Total
Net Premiums Written(Millions of yen)

For the six months ended
September 30, 2014
Amount

For the six months ended
September 30, 2015

Composition YoY Change%

AmountComposition%

YoY Change%%

Fire

160.0(80.0)

280.1

73.5

Marine

840.2

22.8

220.0(73.7)

Personal accident

4,411

9.6

3.7

4,461

9.4

1.1

Voluntary automobile

40,56888.7

3.3

42,349

89.0

4.4

671

1.5

10.2

712

1.5

6.2

45,752100.0

3.3

47,574100.0

4.0Compulsory automobile liability

Total
Net Losses Paid(Millions of yen)

For the six months ended
September 30, 2014
Amount

For the six months ended
September 30, 2015

YoY Change Net loss ratio%

AmountYoY Change%

Net loss ratio
%%

Fire2

340.6

64.80(65.9)

45.3

Marine73(5.0)

86.8

100

36.4

449.6

Personal accident

1,128

11.728.61,207

7.1

30.1

Voluntary automobile

20,616

(4.9)

58.8

21,096

2.3

57.9

601

10.4

89.5

628

4.6

88.2

22,420(3.8)

56.4

23,0332.7

55.9

Compulsory automobile liability

Total

5. Risk-monitored Loans
None5

6. Securities(1) Held-to-maturity securities(Millions of yen)
As of March 31, 2015

Fair value is higher
than balance sheet
amountFair value is lower
than balance sheet
amountAs of September 30, 2015

Balance sheet
amountFair value

Difference

Balance sheet
amountFair value

Difference

JGBs andcorporatebonds68,986

77,952

8,965

70,22578,6198,394

Foreignsecurities

197

222

24

197

221

24

Subtotal

69,18378,174

8,990

70,422

78,841

8,418

－－－－－

－

69,18378,174

8,990

70,422

78,841

8,418

JGBs andcorporate
bonds

Total

(2) Available-for-sale securities(Millions of yen)
As of March 31, 2015

Balance sheet amountis higher thanacquisition cost

Balance sheet amountis lower thanacquisition cost

Total

As of September 30, 2015

Balance sheet
amountAcquisition
cost

Difference

Balance sheet
amountAcquisition
cost

Difference

JGBs andcorporate
bonds30,042

29,951

91

38,56638,444

121Japanesestocks

2,548

729

1,819

3,190

729

2,461

Subtotal

32,59130,681

1,910

41,756

39,174

2,582

JGBs andcorporate
bonds

8,648

8,658

(10)

10,50810,517(9)

Others

1,385

1,385

－

1,055

1,055－

Subtotal

10,03342,625

10,04440,725(10)
1,899

11,56353,32011,57250,747

(9)
2,573

6

7. Non-consolidated Solvency Margin Ratio(Millions of yen)
As of March 31, 2015
(A) Total non-consolidated solvency margin
Capital or treasury
Reserve for price fluctuations

As of September 30, 2015

36,65040,767

23,38925,380124

136

Contingency reserve

8287

Catastrophe reserve

11,344

12,846

General reserve for possible loan losses--

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

1,709

2,316

-

-

-

-

-

-

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

11,641

12,047

Ordinary insurance risk

（Ｒ1）

10,465

10,660Third-sector insurance risk

（Ｒ2）

--

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

Assumed interest rate risk （Ｒ3）8691（Ｒ4）

1,101

1,310

Business management risk （Ｒ5）371

261（Ｒ6）

737

1,033

629.6
629
6％

676 7 ％
676.7

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

Note: The non-consolidated solvency margin ratio was calculated based on the provisions in Articles 86 and 87 of the Ordinance for Enforcement of t
Japan 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.
7