【 Presentation Materials 】

Sony Life’s
Market Consistent Embedded Valueas of March 31, 2010

Sony Financial Holdings Inc.
May 28, 2010
Sony Financial Holdings Inc. All Rights Reserved0Contents- Highlight of MCEV
- Trends Surrounding MCEV and Sony Life’s Approaches- Compliance with MCEV Principles- MCEV Results- Reconciliation Analysis
from MCEV at the End of the Previous Fiscal Year- Sensitivity Analysis- Appendix

P.2
P.3
P.4
P.5 - 11
P.12 - 17
P.18 - 19
P.20 - 22■Opinion of outside specialist
Sony Life requested Milliman, Inc., an external actuarial consulting firm with expert knowledge in the area of MCEV valuations, to review the methodology,
assumptions and calculations and obtained an opinion from Milliman, Inc. Please refer to the press release (“Disclosure of Market Consistent Embedded Value asof March 31, 2010”) for details.
Disclaimer:
These presentation materials contain statements concerning the current plans, expectations, strategies and beliefs of the Sony Financial Holdings Group (the“SFH Group”). Any statements contained herein that pertain to future operating performance and that are not historic facts are forward-looking statements.
Forward-looking statements may include—but are not limited to—words such as “believe,” “anticipate,” “plan,” “strategy,” “expect,” “forecast,” “predict,”“possibility” and similar words that describe future operating activities, business performance, events or conditions. Forward-looking statements, whether spoken
or written, are based on judgments made by the management of the SFH Group, based on information that is currently available to it. As such, these forwardlooking statements are subject to various risks and uncertainties, and actual business results may vary substantially from the forecasts expressed or implied inforward-looking statements. Consequently, investors are cautioned not to place undue reliance on forward-looking statements. The SFH Group disclaims any
obligation to revise forward-looking statements in light of new information, future events or other findings. The information contained in this presentation does notconstitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any securities, nor shall it or any part ofit form the basis of or be relied on in connection with any contract or commitment whatsoever.

Sony Financial Holdings Inc. All Rights Reserved1Highlight of MCEV
 Sony Life’s MCEV as of March 31, 2010 was ¥894.0 billion, up ¥493.1 billion from March 31,

2009.
 Adjusted net worth as of March 31, 2010, was ¥206.2 billion, up ¥10.8 billion from a year

earlier, due primarily to an increased profit and an increase in unrealized gains or losses onavailable-for-sale securities boosted by rising prices of Japanese stocks and convertible
bonds held, despite a decrease in unrealized gains or losses on held-to-maturity securities.
 Value of existing business as of March 31, 2010, was ¥687.8 billion, up ¥482.4 billion from ayear earlier, due to a change in the market environment including steepening of the yield
curve of interest swap rates as well as a sharp decline in the time value of options andguarantees which is an item to reduce MCEV as already announced in the press release“Impact of Asset Management Policy Changes and Other Factors on Sony Life’s Market
Consistent Embedded Value” on March 15, 2010.
 Value of new business as of March 31, 2010, was ¥55.6 billion, up ¥40.2 billion from March

31, 2009.
 Sony Life will continuously work to reduce the duration mismatch risk between assets andliabilities. We will also achieve a continuous growth in corporate value by increasing our
new business value.

Sony Financial Holdings Inc. All Rights Reserved2Trends surrounding MCEV
and Sony Life’s approaches
Trends surrounding MCEV
Life insurers in Europe that are

members of the CFO ForumApproaches in the pastCommenced EV disclosures, starting from Traditional Embedded

Mandatory EV disclosures in compliancewith MCEV
EuropeanInsurance
Principles
hasCFO
beenForum
scheduledMarketConsistentby the endof 2011.Embedded Value
Principles©
been scheduledfrom theDisclosures has
in compliancewith MCEV
fiscalyear isendingDec.to31,
2011. particularly
Principles
expectedspread,inDisclosures
Europe. in compliance with MCEV

Principles is expected to spread, particularly
in Europe.

Decidedto (December
conduct a reviewof the impact of
CFO
Forum
2008)
turbulent market conditions on the MCEV
Decided to conduct a review of the impact ofPrinciples, as their application could, in suchturbulentmarket conditions
on the MCEV
market conditions,lead to misleading
results.
Principles, as their application could, in suchmarketExpressed
possibilities
changesofconditions,lead ofto partial
misleading
results.
the published MCEV Principles or of theExpressed possibilities of partial changes of
guidance issues based on the review results.
the published MCEV Principles or of theguidance
Declared its
continuous
commitment
issuesbased onthe review toresults.
MCEV Principles
Declared its continuous commitment to MCEV
Principles
CFO
Forum announced an update on
CFO Forum (December 2008)

Value (TEV) as of March 31, 2005
Shift EV disclosures from TEV to Market Consistent Embedded

Value (MCEV), starting from MCEV as of March 31, 2008
Continuously invested in ultralong-term bonds to reduce theduration mismatch risk between assets and liabilities-Ratio of holding Japanese government and corporate bonds(excluding CBs) in general account assets
2008.3.31: 62.9% ⇒ 2010.3.31: 84.6%-Assets duration
2008.3.31: 8.7 years ⇒ 2010.3.31: 17.6 years
Constructed a product control system and a product development

system in reviewing the impact on MCEV
Changed Sony Life’s asset management policy and dividend

policy in certain products
Approaches in the futureTaking measures to tasks obtained from MCEV valuation, with an

aim to achieve continuous growth of corporate value

progress (October 2009)

CFO Forum announced changes to theNew Announced was released to MCEV that
MCEV
Principles (October 2009)

added relating to liquidity premium.
Announced a change to the MCEV Principles
to reflect the inclusion of a liquidity premium.

Copyright Ⓒ Stichting CFO Forum Foundation 2008

Sony Life’s approaches

Further reducing the duration mismatch risk between assets andliabilities
Reviewing product details by taking liability characteristics into

consideration

Sony Financial Holdings Inc. All Rights Reserved

3Compliance with MCEV Principles
 We have calculated our MCEV in accordance with the calculation methodologies andassumptions in the MCEV Principles. Points of notice regarding MCEV Principles
compliance are as follows.
 The calculated value of MCEV is the value for Sony Life only, and not the consolidated value ofSony Financial Holdings Inc.
 Group MCEV, as prescribed in the MCEV Principles, is not considered in this report, as the report
is for Sony Life on a standalone basis.
 With respect to Sony Life’s subsidiary and its equity method affiliates, we have not evaluated theirlife insurance business but reflected the following values to the calculation of adjusted net worth.
Values of subsidiary and affiliated companies were not changed in sensitivity tests.
z AEGON Sony Life Insurance is valued as net asset value minus intangible fixed assets and Insurance

Business Law Article 113 deferred assets, multiplied by the participation ratez Sony Life Insurance (Philippines) is valued as book value under Japanese GAAP adjusted for unrealized
gains / losses due to foreign exchange rate movement (after-tax)
z Other companies are valued as book value under Japanese GAAP
 Any calculated values of MCEV are not presented separately by segment of subsidiary andaffiliated company.
 We have calculated adjusted net worth based on Japanese GAAP, not on International Financial
Reporting Standards (IFRS).
 While Japanese solvency regime will be revised at the end of March 2012, the calculation isbased on the current solvency margin regime, because it is expected that MCEV would not bematerially different even if required capital were set to the revised regulatory minimum solvency
capital from the end of March 2012. Accordingly, sensitivity to use the current regulatory minimum
solvency capital is not presented.

Sony Financial Holdings Inc. All Rights Reserved

4

MCEV Results(Billions of yen)

09.3.31

MCEV

10.3.31

Change

400.9

894.0

+493.1

Adjusted net
worth

195.4

206.2

+10.8

Value ofexisting
business

205.4

687.8

+482.4

Of which, newbusiness value

15.4

55.6

+40.2

Sony Financial Holdings Inc. All Rights Reserved

5

MCEV Results(Breakdown of Adjusted net worth 1)(Billions of yen)

09.3.3110.3.31

ChangeAdjusted net worth

195.4

206.2

+10.8

Total net assets

140.7

191.3

+50.6

3.7

9.6

+6.0

45.5

48.5

+3.0

0.0

0.0

+0.0

Unrealized gains or losses on held-tomaturity securities

26.7(20.5)(47.2)

Unrealized gains or losses on land andbuildings

28.9

12.5

(16.4)

Unfunded pension liabilities

(6.8)

(6.6)

+0.1

Intangible fixed assets(12.2)(13.9)(1.7)

Tax effect equivalent of above seven items(31.1)(10.7)+20.3

Valuation gain or loss on subsidiaries andaffiliated companies *

－

(4.0)

(4.0)

Reserve for price fluctuations
Contingency reserves
Reserve for possible loan losses

Valuation gain or loss on subsidiaries and affiliated companies included mainly values of AEGON Sony Life Insurance and Sony Life insurance(Philippines) to the calculation of adjusted net worth.

Sony Financial Holdings Inc. All Rights Reserved

6

MCEV Results(Breakdown of Adjusted net worth 2)(Billions of yen)

09.3.3110.3.31

ChangeAdjusted net worth

195.4

206.2

+10.8

Free surplus(173.8)206.2+380.0Required capital

369.2

－

(369.2) As of March 31, 2010, Free surplus turned into positive figure from anegative surplus in the previous fiscal year, which showed a substantial
recovery in Sony Life’s capital adequacy.
 Japanese solvency regime are to be revised at the end of March 2012.

However, the calculation is based on the current solvency margin regime,
because it is expected that MCEV would not be materially different even if
required capital were set to the revised regulatory minimum solvency capitalfrom the end of March 2012.

Sony Financial Holdings Inc. All Rights Reserved

7

Image of Required capital and free surplus
09.3.31

Economic value-based
liabilities

Liabilities

CapitalAssetsEconomic value-based
liabilities

Liabilities

AssetsReserves

10.3.31②
SCR②
Reserves

Adjusted net worth

SCR

CapitalAdjusted net worth

Required capitalzero

RequiredcapitalRequired Capital: the excess potion of statutory policy reserve (excluding contingency reserves) in the larger amount of the following (1) or (2)(1) Statutory liabilities + the amount of capital required for a solvency margin ratio of 600% (the portion in excess of margin included in statutory liabilities)(2) Economic value-based liabilities + SCR (the amount of solvency risk capital to cover risks based on the internal model stipulated by QIS4 of the EU
Solvency II)*As of march 31, 2009 and 2010, each amount of (1) did not exceed the statutory liabilities.

Sony Financial Holdings Inc. All Rights Reserved

8Standard Methodologies described in
QIS4 of EU Solvency II (Excerpt) Market Risk
 For equity risk, using a shock of 32% fall in the value
 For currency risk, using a downward shock of 20%
 For interest rate risk, using the interest rate movements pre-defined by each maturityz Interest rate up (from 1.37 times to 1.94 times), Interest rate down ( from -0.31 times to -0.51 times) Combined the above results by using a correlation matrix

 Life Underwriting Risk
 For mortality risk, using a shock of a (permanent) 10% increase in mortality rates for each age.
 For longevity risk, using a shock of a (permanent) 25% decrease in mortality rates for each age.
 For lapse riskz Increase by 50% in the assumed rates of lapsation in all future yearsz Decrease by 50% in the assumed rates of lapsation in all future years

Maximum amount of thesez 30% of the sum of surrender as a mass lapse event

 For expense risk, using a shock of a 10% increase in future expenses compared to best estimate

anticipations, and increasing 1% per annum of the expense inflation rate compared to anticipations
 For disability risk, using a shock of a 35% increase in disability rates for the next year, together

with a (permanent) 25% increase (over best estimate) in disability rates at each age in following
years.
*The latest Quantitative Impact Study following the QIS4, is expected to be executed between August and November 2010.
The European Commission has published its draft on April 15, 2010.

Sony Financial Holdings Inc. All Rights Reserved

9MCEV Results(Value of existing business)
Value of existing
business

09.3.3110.3.31

Change

205.4

687.8

+482.4A) Present value ofcertainty-equivalent profit

673.1

887.2

+214.0B) Time value of options
and guarantees(228.7)(37.7)+191.1(58.5)(11.5)+47.0(180.5) (150.2)+30.3(Billion of yen)(Billions of yen)

887.2

Value of existing business(37.7)(11.5)

687.8
C) Frictional costs(150.2)D) Cost of non-hedgeable
risks

A

B

C

D

10.3.31Sony Financial Holdings Inc. All Rights Reserved

10MCEV Results (New business value)
Breakdown of
new business value

09.3.3110.3.31

Change

15.4

55.6

+40.2

E) Present value ofcertainty-equivalent profit

62.8

76.9

+14.1

F) Time value of options
and guarantees(28.1)

(4.1)

+23.9

(1.7)

(0.3)

+1.3

(17.7)(16.8)+0.9

09.3.3110.3.31

ChangeNew business value

15.4

55.6

+40.2

Present value of premiumincome

866.9

875.4

+8.5

New business margin

1.8%

6.4%

+4.6pt(Billions of yen)

New business value(Billions of yen)

76.9
(4.1)

(0.3)
55.6
(16.8)G) Frictional costs
H) Cost of non-hedgeablerisks
New business margin(Billions of yen)

E

F

G

H

10.3.31*The present value of premium income is calculated applying the same
assumptions as those for the calculation of new business value.

Sony Financial Holdings Inc. All Rights Reserved

11

Reconciliation analysis from MCEV
at the end of the previous fiscal year (1)(Billions of yen)

MCEV as of March 31, 2009

Free surplus(a)Value ofexisting
business (c)Requiredcapital(b)

MCEV(a)-(c)Total(173.8)

369.2

205.4

400.9

(7.0)

－

－

(7.0)

(180.8)

369.2

205.4

393.9

－

－

55.6

55.6

（3）Expected existing business contribution (risk free rate)

(1.5)

2.9

17.0

18.4

(4) Expected existing business contribution (in excess of risk free rate)

(1.0)

1.9

10.5

11.5

（5）Transfers from value of existing business and required capital to free surplus

36.0(23.3)(12.7)－(31.3)－

31.3－(6) Experience variances

0.0

－

(1.1)

(1.0)

(7) Assumption changes

22.5(22.5)(26.4)(26.4)(8) Other operating variance245.7(245.7)

215.3

215.3

(9) Operating MCEV earnings (2)～(8) total

301.7(286.6)

258.2

273.3

(10) Economic variances

85.4(82.6)

224.1

227.0

－

－

－

－

Total MCEV earnings

387.1(369.2)

482.4

500.3

Closing adjustments

(0.2)

－

－

(0.2)

206.2

－

687.8

894.0

(1) Adjustments to MCEV as of March 31, 2009
Adjusted MCEV as of March 31, 2009（2）New business value

Of which, transfer from new business value(11) Other non operating variance

MCEV as of March 31, 2010

Sony Financial Holdings Inc. All Rights Reserved

12

Reconciliation analysis from MCEV
at the end of the previous fiscal year (2)＜10.3.31＞＜09.3.31＞+227.0(Billions of yen)

894.0
(0.2)

+215.3

+18.4
+55.6
400.9

+11.5
(1.0)

393.9

(26.4)(7.0)

Operating MCEV earnings
MCEV Adjustments Adjusted
MCEV
as of
as of
March 31,
March 31,
2009
2009

FY09
New
businessvalue

Expected existing Expected existing
businessbusiness
contribution
contribution(in excess of(risk free rate）
risk free rate）

Experience Assumption
Economic Adjustments
varianceschanges Other variances

Sony Financial Holdings Inc. All Rights Reserved

MCEV
as of
March 31,2010

13

Reconciliation analysis from MCEV
at the end of the previous fiscal year (3)(Billions of yen）

Free surplus(a)Requiredcapital(b)

Value ofexisting
business (c)MCEV(a)-(c)Total

MCEV as of March 31, 2009
(1) Adjustments to MCEV as of March 31, 2009(173.8)
(7.0)

369.2
－

205.4
－

400.9
(7.0)

Adjusted MCEV as of March 31, 2009(180.8)

369.2

205.4

393.9

－

－

55.6

55.6

（2）New business value(1) Adjustment to MCEV as of March 31, 2009
These adjustments reflect changes in dividends paid to shareholders.
(2) New business value
This figure reflects increases resulting from the acquisition of new business during the year ended March 31, 2010.

Sony Financial Holdings Inc. All Rights Reserved

14

Reconciliation analysis from MCEV
at the end of the previous fiscal year (4)(Continue)(Billions of yen）

Free
surplus(a)Requiredcapital(b)

Value ofexisting
business(c)

MCEV(a)-(c)Total（3）Expected existing business contribution (risk free rate)

(1.5)

2.9

17.0

18.4

(4) Expected existing business contribution (in excess of risk free rate)

(1.0)

1.9

10.5

11.5

（5）Transfers from value of existing business and required capital to free surplus

36.0(23.3)(12.7)－(3) Expected existing business contribution (risk-free rate)
This figure includes the release of the portion for the year ended March 31, 2010, of the time value of options and guarantees and the cost of non-hedgeable
risks, in addition to the release of the expected existing business contributions at a risk-free rate from the opening MCEV (as of March 31, 2009).
(4) Expected existing business contribution (in excess of risk-free rate)
This figure reflects the profit expected in excess of the risk-free rate generated by holding assets such as ordinary corporate bonds, convertible bonds, loans,stocks and real estate. The expected yield used to calculate the expected existing business contribution in excess of the risk-free rate for the year ended
March 31, 2010, was 1.245%, which was developed by reflecting our view of the market environment and annual investment plans for the year against theasset balance at the end of the previous fiscal year.
(5) Transfers from value of existing business and required capital to free surplus
This figure indicates changes in the free surplus by transferring the profit for the year ended March 31, 2010, from the existing business value to the freesurplus and from changes in the required capital. The transfer of profit, the first item, includes the transfer of expected profit that it was assumed would be
realized during the year ended March 31, 2010, under the MCEV calculation as of March 31, 2009, and the transfer of profit for the year ended March 31,
2010, calculated under the new business value for the year ended March 31, 2010, which is added in (2) above.
The value of MCEV itself does not change as a result of this transfer as the transfer merely constitutes an internal shift among MCEV components.

Sony Financial Holdings Inc. All Rights Reserved

15

Reconciliation analysis from MCEV
at the end of the previous fiscal year (5)(Billions of yen)(Continue)(Billions of yen）

Value ofexisting
business (c)Requiredcapital(b)Free surplus
(a)

MCEV
(a)-(c)Total(6) Experience variances

0.0

－

(1.1)

(1.0)

(7) Assumption changes

22.5(22.5)(26.4)(26.4)(8) Other operating variance245.7(245.7)

215.3

215.3

(6) Experience variances
These variances show the impact on MCEV of the actual versus assumed differences in non-economic expected profit for the year ended March 31, 2010, under the
MCEV calculation as of March 31, 2009, and of the differences between actual policies in force as of March 31, 2010, and those that were projected to be in force on
March 31, 2009, using persistency assumptions. The primary causes are changes in unfunded pension liabilities and intangible fixed assets reflected in adjusted net
worth.
These variances reflect the impact of one-time expenses incurred during the year ended March 31, 2010, if applicable.
(7) Assumption changes
This figure indicates the impact of changes in the assumptions, mainly on mortality and morbidity rates, lapse and surrender rates and operating expense rates. In
addition to the impact of regular annual update of the assumptions, the figure also includes impact of update of mortality and other rates of accidental and health (A&H)
products as announced by press release “Impact of Asset Management Policy Changes and Other Factors on Sony Life’s Market Consistent Embedded Value” onMarch 15, 2010. It is to change mortality rates for A&H products from those based on the company’s own experience of life insurance products to those based on thecompany’s own experience of A&H products. It also includes to reflect morbidity deterioration trend to those products for which such trends are observed.
(8) Other operating varianceIn addition to the impact of improvements and corrections of the model used in calculating MCEV, the figure also includes impact of the following two changes asannounced by press release “Impact of Asset Management Policy Changes and Other Factors on Sony Life’s Market Consistent Embedded Value” on March 15, 2010,
which resulted in an increase of ¥225.3 billion in MCEV.

①Change to interest rate sensitive whole life insuranceSony Life has decided no investments will be made in stocks or other risk assets, but only in bonds, aiming at a stable asset management regarding this product.
②Change to semi-participating products
Sony Life has decided it will invest in no stocks or other risk assets, and rather, it will aim to achieve stable asset management by investing only in bonds.
In accordance with this change, Sony Life changed its calculation method of dividends to policyholders from its method of adding gains/losses on sale of securities tointerest income and dividends as dividend resources, to a method of providing dividends based on interest income, which is unaffected by fluctuations in asset market
value.

Sony Financial Holdings Inc. All Rights Reserved

16

Reconciliation analysis from MCEV
at the end of the previous fiscal year (6)(Continue)(Billions of yen）

Value ofexisting
business(c)Requiredcapital(b)Free surplus
(a)

MCEV
(a)-(c)total(9) Operating MCEV earnings(2)-(8) total

301.7(286.6)

258.2

273.3

(10) Economic variances

85.4(82.6)

224.1

227.0

－

－

－

－

Total MCEV earnings

387.1(369.2)(482.4)

500.3

Adjusted MCEV as of March 31, 2010

(0.2)

－

－

(0.2)

206.2

－

687.8

894.0

(11) Other non operating variance

MCEV as of March 31, 2010(9) Operating MCEV earnings
This figure shows the aggregate amount of items (2) through (8).
(10) Economic variances

These variances show the impact of actual to assumed differences in economic assumptions, such as market interest rates and implied volatilities, that werereflected in the market environment when calculating MCEV as of March 31, 2009, on future values and the impact of the actual to assumed difference in
expected asset investment income that were assumed would be realized during the year ended March 31, 2010, under MCEV as of March 31, 2009. Most of
the difference is created by the former factor, of which major reasons for increases in the value of existing business include update of economic scenarios
due to the change in the market environment such as steepening of the yield curve of interest swap rates and a change of the implied volatilities, accounting
for an increase in the present value of certainty-equivalent profit by ¥182.0 billion, as well as decreases in the time value of options and guarantees, in thecost of non-hedgeable risks, and in the frictional costs by ¥3.8 billion, ¥23.3 billion and ¥17.5 billion.
(11) Other non operating variance
There are no differences based on other factors.
(12) Closing adjustments
It reflects the impact of valuation gains or losses by the foreign exchange rate on Sony Life Insurance (Philippines).

Sony Financial Holdings Inc. All Rights Reserved

17

Sensitivity Analysis(Billions of yen)
Assumption＜10. 3.31＞
Change in Assumption＜09.3.31＞
MCEV

AmountChange% Change

MCEV

AmountChange% Change

No change

894.0

－

－

400.9

－

－

100bp decrease

782.9(111.1)

(12％)

107.3

(293.6)(73%)

100bp increase

918.5

+24.5

+3％

573.2

+172.3+43%

Stock / Real estate market value

10％ decrease

878.2(15.8)

(2％)

385.1

(15.7)(4%)

Stock / Real estate implied volatility

25％ increase

890.0

(4.1)

(0％)

398.8

(2.1)

(1%)

Interest swaption implied volatility

25％ increase

888.5

(5.5)

(1％)

331.3

(69.5)(17%)

Maintenance expenses

10％ decrease

904.8

+10.8

+1％

411.3

+ 10.5+ 3%

Lapse & surrender rates

x 0.9

919.9

+25.8

+3％

393.1

(7.7)

(2%)

Mortality rates

Death protection products:
x 0.95

925.4

+31.3

+4％

435.6

+34.7

+9%

Third-sector and annuity
products X 0.95

890.9

(3.1)

(0％)

396.5

(4.4)

(1%)

x 0.95

920.5

+26.5

+3％

428.6

+27.7

+7%

Base
Interest rates

Morbidity rates■Changes in adjusted net worth within the amount of change in MCEV are shown in the table below. Of items not specified inthis table, only the value of existing business has been changed while adjusted net worth remains the same.
Assumption

Change in Assumption

Amount Change

Amount Change

100bp decrease

391.0

274.8

100bp increase(326.3)(242.5)

Stock / Real estate market value

10％ decrease(13.3)(14.0)

Stock / Real estate implied volatility

25％ increase

(0.1)

+2.8

Interest rates

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18

Sensitivity of new business value(Billions of yen)
Assumption＜10. 3.31＞
Change inAssumption＜09.3.31＞
New
BusinessValue

AmountChange% Change

New
BusinessValue

AmountChange% Change

No change

55.6

－

－

15.4

100bp decrease

25.8(29.8)(54％)(24.6)(39.9) (260%)

100bp increase

70.1

+14.5

+26％

40.5

+25.1 +164%

Stock / Real estate market value

10％ decrease

55.6

(0.0)

(0％)

15.3

(0.0)

(0%)

Stock / Real estate implied volatility

25％ increase

55.4

(0.2)

(0％)

14.6

(0.7)

(5%)

Interest swaption implied volatility

25％ increase

54.3

(1.3)

(2％)

7.1

(8.3)

(54%)

Maintenance expenses

10％ decrease

56.8

+1.2

+2％

16.5

+1.2

+8%

Lapse & surrender rates

x 0.9

60.4

+4.8

+9％

16.0

+0.6

+4%

Death protection
products: x 0.95

57.9

+2.3

+4％

18.0

+2.6

+17%

Third-sector andannuity products
X 0.95

55.4

(0.2)

(0％)

15.0

(0.3)

(2%)

x 0.95

58.4

+2.8

+5％

18.3

+2.9

+19%

Base

Interest rates

Mortality rates

Morbidity rates

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－

－

19

Appendix

Sony Financial Holdings Inc. All Rights Reserved

20Assumptions
Assumptions are described in the press release on page 16. Of the assumptions, some of economic assumptions are shown below.

<Risk-free rate>
Term<Implied volatilities of interest swaptions>09.3.3110.3.31

Term ofoption09.3.31(JPY)

10.3.31(JPY)

1 year

0.75%

0.45%

Term ofswap

5 year

0.97%

0.76%

1 year

1 year

38.4%

40.3%

10 year

1.31%

1.46%

5 year

1 year

42.2%

41.8%

20 year

1.79%

2.19%

5 year

5 year

29.7%

27.1%

30 year

1.88%

2.32%

5 year

7 year

25.1%

23.4%

40 year

1.89%

2.37%

5 year10 year

22.0%

20.9%

50 year

1.92%

2.42%

10 year1 year

35.4%

30.3%

10 year

5 year

25.2%

23.6%

10 year

7 year

22.3%

21.4%

10 year

10 year

20.0%

20.4%

*The interest swap rate of Japanese yen is used as a risk-free rate.

<Implied volatilities of stocks>Term

09.3.3110.3.31

Japan
TOPIX

U.S.
S&P

Japan
TOPIX

U.S.
S&P

15 year1 year

31.3%

25.2%

1 year

34.0%

37.0%

18.5%

19.4%

15 year

5 year

23.0%

22.2%

5 year

31.6%

34.8%

20.5%

22.1%

15 year

7 year

21.3%

21.4%

10 year

31.5%

34.7%

22.2%

28.4%

15 year

10 year

20.2%

21.0%

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Comparison of Interest Swap Rates(%)

2.5
10.3.31
09.3.31
2

1.5

1

0.5

R
30
Y

R

R
20
Y

40
Y

R
15
Y

1Y
R
2Y
R
3Y
R
4Y
R
5Y
R
6Y
R
7Y
R
8Y
R
9Y
R
10
Y
R

0

(Data Source: Bloomberg)Sony Financial Holdings Inc. All Rights Reserved

22For inquiries:
Sony Financial Holdings Inc.
Corporate Communications & Investor Relations Department
TEL：+81-(0)3-5785-1074

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23