November 12, 2018
Sony Financial Holdings Inc.

Summary Information on Sony Assurance’s Financial Results
for the Six Months Ended September 30, 2018
<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. Risk-monitored Loans

P.5

6. Securities

P.6

7. Non-consolidated Solvency Margin Ratio

P.7

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, 2018

(Millions of yen)
As ofSeptember 30, 2018

Assets:Cash and deposits

23,77819,500

Securities

145,349

155,699

Tangible fixed assets

2,407

1,978

Intangible fixed assets

6,196

8,036

Other assets

17,14914,761

Accounts receivable

10,432

7,957

Others

6,716

6,804

9,480

10,011

204,362

209,986

156,612

163,858

Reserve for outstanding losses and claims

39,53541,317

Underwriting reserves

117,077

122,540

11,553

9,026

Income taxes payable

2,363

2,097

Others

9,190

6,928

Reserve for employees’ retirement benefits

1,667

1,767

Reserve for employees’ bonuses

1,132

1,116

Reserve under the special laws

206

222

Reserve for price fluctuations

206

222

171,173

175,990

Common stock

20,00020,000Capital surplus

3,389

3,389

Retained earnings

7,872

9,354

Total shareholders' equity

31,261

32,743Net unrealized gains (losses) on available-for-sale securities, net of taxes

1,927

1,252

Total valuation and translation adjustments

1,927

1,252

33,18933,996204,362

209,986

Deferred tax assets
Total Assets
Liabilities:
Underwriting reservesOther liabilities

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, 2017
Ordinary Revenues

For the six months ended
September 30, 2018

54,79857,76253,81756,55253,78656,520

30

32

956

1,172

Interest income and dividends

667

679

Gains on sale of securities

320

526

Transfer to interest and dividends on deposits of premiums

(30)

(32)

24

36

50,211

52,312

Underwriting expenses

36,76438,974

Net losses paid

24,937

26,830Loss adjustment expenses

3,672

4,031

896

867

Provision for reserve for outstanding losses and claims

1,046

1,782

Provision for underwriting reserves

6,211

5,463

－

0－

0

13,445

13,336

1

0

4,587

5,449

Extraordinary Gains－－

Extraordinary Losses

1620

Losses on sale or disposal of fixed assets

14

Provision for reserve under the special laws

14

15

Provision for reserve for price fluctuations

1415

Income Before Income Taxes

4,571

5,429

Income Taxes—Current

1,908

1,802

Income Taxes—Deferred(691)(267)

Total Income Taxes

1,216

1,535

Net Income

3,354

3,894

Underwriting income
Net premiums written
Interest and dividends on deposits of premiums
Investment income

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
Ordinary Profit3

3. Financial Summary (Comparison to previous year)(Millions of yen)
For the six months ended For the six months ended
September 30, 2017
September 30, 2018

YoY change(Amount)

YoY change(%)

Gross direct premiums written

53,11655,950+2,834+5.3

Direct premiums written

53,11655,950+2,834+5.3

53,81756,552+2,735+5.1

53,78656,520+2,733+5.1

Underwriting expenses

36,76438,974+2,210+6.0

Net losses paid

24,937

26,830+1,892+7.6

Loss adjustment expenses

3,672

4,031+359

+9.8

896

867

(28)

(3.2)

956

1,172+216+22.6

Interest income and dividends

667

679

+11+1.8

Gains on sale of securities

320

526+206+64.4

－

0+0－－

0+0－

Operating, general and administrative expenses

13,445

13,336(108)(0.8)

Operating, general and administrative
expenses related to underwriting

13,414

13,304(109)(0.8)

2335+12+52.0

4,587

5,449

+861

+18.8

3,637

4,272+634+17.5

Extraordinary Gains－－－－

Extraordinary Losses

1620+4+26.4

Extraordinary gains (losses), net(16)

(20)

(4)

－

Income Before Income Taxes

4,571

5,429+857+18.8

Income Taxes –Current

1,908

1,802(105)(5.5)

Income Taxes –Deferred(691)

(267)

+423

－

Total Income Taxes

1,2161,535+318+26.2

Net Income

3,354

3,894+539+16.1

Net loss ratio

53.2%

54.6%

Net expense ratio

26.6%

25.1%

Underwriting income
Net premiums written

Net commissions and brokerage fees
Investment income

Investment expenses
Losses on sale of securities

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. 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, 2017
AmountComposition

For the six months ended
September 30, 2018
AmountYoY change%Composition%

YoY change%%

Fire1020.2(12.1)

110

0.2

Marine－－－－－－

Personal accident

4,348

8.2(0.9)

4,361

7.8+0.3

Voluntary automobile

48,664

91.6

+11.1

51,47892.0+5.8

－

－－－

－－

53,116

100.0

+9.9

55,950100.0+5.3

Compulsory automobile liability

Total+7.0

Net premiums written(Millions of yen)

For the six months ended
September 30, 2017
AmountComposition

80.0

For the six months ended
September 30, 2018

YoY change%

Fire

AmountComposition

80.0%(37.5)

YoY change%%+8.5( 0)

(0.0)

－－－－

Personal accident

4,452

8.3(1.6)

4,441

7.9(0.3)

Voluntary automobile

48,545

90.3

+11.1

51,336

90.8

+5.7

780

1.5+10.0733

1.3(6.0)

53,786

100.0

+9.9

56,520100.0+5.1

MarineCompulsory automobile liability

Total

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

For the six months ended
September 30, 2017
AmountYoY change2(45.3)For the six months ended
September 30, 2018

Net loss ratio%Fire

AmountYoY change

3+63.8%235.0

Net loss ratio%%269.9

3－－2(36.4)－

Personal accident

1,361+10.8

33.7

1,402

+3.0

35.2

Voluntary automobile

22,915+3.3

54.4

24,749+8.0

55.7

655+0.983.9

671+2.6

91.6

24,937+3.7

53.2

26,830+7.6

54.6

MarineCompulsory automobile liability

Total

5. Risk-monitored Loans
Not applicable5

6. Securities(1) Held-to-maturity securities(Millions of yen)
As of March 31, 2018

As of September 30, 2018

Balance sheet
amountFair value

Difference

Balance sheet
amountFair value

Difference

Japanese bonds

74,38391,556

17,172

69,716

84,276

14,560Foreign securities

197

211

13197

209

11

74,581

91,767

17,18569,914

84,486

14,572

4,496

4,173

(323)

10,268

9,618

(649)

79,07895,94016,86280,182

94,105

13,922

Fair value exceeding balance sheet amount

Subtotal

Fair value not exceeding balance sheet amountJapanese bonds
Total(2) Available-for-sale securities(Millions of yen)
As of March 31, 2018

As of September 30, 2018

Balance sheet
amountAcquisition
cost

Difference

Balance sheet
amountAcquisition
cost

Difference

Japanese bonds

40,24540,151

9336,941

36,87862

Japanese stocks

3,023

412

2,610

2,042

330

1,712

Subtotal

43,26840,564

2,704

38,98337,2081,775

23,002

23,029(27)

36,53336,568(35)

66,27063,5932,677

75,51673,777

1,739

Balance sheet amount exceeding acquisition cost

Balance sheet amount not exceeding acquisition cost
Japanese bonds
Total

6

7. Non-consolidated Solvency Margin Ratio(Millions of yen)
As of March 31, 2018
(A) Total non-consolidated solvency margin
Capital or treasury, etc.
Reserve for price fluctuations

As of September 30, 2018

54,24458,94928,84931,537

206

222

Contingency reserve

109

114

Catastrophe reserve

20,97022,765－

－

2,409

1,565

－

－

Excess refund reserve－－

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

－－－－－

－

1,698

2,743

13,871

14,359General 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

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

Ordinary insurance risk

(R1)

12,395

12,860Third-sector insurance risk

(R2)

－－

Assumed interest rate risk

(R3)

114

118

Asset management risk

(R4)

1,712

1,817

Business management risk

(R5)

305

316

(R6)
Major catastrophe risk(C) Non-consolidated solvency margin ratio

1,036

1,037

782.1 %

821.0 %[(A)／{(B)×1/2}]×100

Note: The above figures are calculated based on provisions in Articles 86 and 87 of the Ordinance for Enforcement of the InsuranceBusiness Act of 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 cover against risk events
which exceed its normal estimates, i.e. occurrence of a major catastrophe or a dramatic drop in the value of the assets they hold.

Total risk (item (B) in the table) indicates risk events which exceed the normal estimates. The non-consolidated solvency margin ratio(item (C) in the table) is an indicator of an insurer’s ability to pay, calculated as prescribed by the Insurance Business Act of Japan,
based on its percentage holdings of capital and other reserves (in other words, the total non-consolidated solvency margin, as indicatedby (A) ).
“Risk events which exceed the normal estimates” refers to the total of the amounts represented by the following risks:(1) Insurance underwriting risk: Risk which exceeds the normal estimates for the rate of accident occurrence(Ordinary insurance risk)(excluding major catastrophe risk)(Third-sector insurance risk)(2) Assumed interest rate risk
: Risk that actual investment yields will fall below the investment yield assumed whencalculating premiums(3) Asset management risk
: Risk arising from such factors as unexpectedly large fluctuations in prices on held securities
and other assets(4) Business management risk
: 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 theIse Bay Typhoon)

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

7