May 16, 2016
Sony Financial Holdings Inc.

Summary Information on Sony Assurance’s Financial Results
for the Year Ended March 31, 2016
<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, 2015

As of March 31, 2016

Assets:Cash and deposits

10,7388,381

00Deposits

10,738

8,381

Securities

111,809127,256

Japanese government bonds

85,69882,427

Japanese municipal bonds

15,21827,207

Japanese corporate bonds

6,760

12,660Japanese stock

2,548

3,708

Foreign securities

197197

Other securities

1,385

1,055

Tangible fixed assets

3,539

4,024

228

201

Construction in progress

1,666

181

Other tangible fixed assets

1,644

3,641

7,084

5,988

Software

3,949

3,347

Software in progress

3,134

2,640

00

19,294

20,363

Accrued premiums

1,265

1,273

Due from reinsurers

9396

Due from foreign reinsurers

224

12,931

13,493

Accrued income

135152Deposits

446

443

4,399

4,900

5,452

6,308

157,919

172,323

Cash

Buildings

Intangible fixed assets

Other intangible fixed assets
Other assets

Accounts receivable

Suspense payments
Deferred tax assets
Total Assets2

(Millions of yen)
As of March 31, 2015

As of March 31, 2016

Liabilities:
Underwriting reserves

122,173

133,246

Reserve for outstanding losses

35,66537,542

Underwriting reserves

86,50895,704

8,787

8,339

Other liabilities
Due to reinsurers

78

Due to foreign reinsurers

115

Income taxes payable

2,005

1,442

Deposits received

1515Accounts payable

2,678

2,724

Suspense receipt

3,997

4,152

Reserve for employees’ retirement benefits

1,130

1,281

Reserve for directors’ retirement benefits

3344

Reserve for employees’ bonuses

927

956

Reserve for price fluctuations and others

124

149

124

149

133,178

144,018

20,00020,000Capital reserve

20,0003,389

Total capital surplus

20,0003,389

Other retained deficits(16,610)

2,586

Unappropriated retained deficits(16,610)

2,586

Total retained deficits(16,610)

2,586

Total shareholders’ equity

23,38925,976

Net unrealized gains on other securities, netof taxes

1,351

2,328

Total valuation and translation adjustments

1,351

2,328

Total Net Assets

24,741

28,305

Total Liabilities and Net Assets

157,919

172,323

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

Retained deficits

Valuation and translation adjustments32. Statements of Income
For the year ended
March 31, 2015
93,022
91,761
91,712
48
0
1,235
1,268
15

Ordinary Revenues
Underwriting income(Net premiums written)(Interest and dividends on deposits of premiums)(Other underwriting income)Investment income(Interest income and dividends)(Gains on sale of securities)(Transfer to interest and dividends on depositsof premiums)

Other ordinary income
Ordinary Expenses
Underwriting expenses(Net losses paid)(Loss adjustment expenses)(Net commissions and brokerage fees)(Provision for reserve for outstanding losses)(Provision for underwriting reserves)(Other underwriting expenses)

Investment expenses(Losses on sale of securities)
Operating, general and administrative expenses
Other ordinary expenses
Ordinary Profit
Extraordinary Gains
Extraordinary Losses
Losses on sale or disposal of fixed assets
Provision for reserve for price fluctuations and others
Provision for reserve for price fluctuations

Income Before Income Taxes
Income Taxes –current
Income Taxes –deferred
Total Income Taxes
Net Income4(Millions of yen)
For the year ended
March 31, 2016
96,905
95,612
95,549
62
0
1,263
1,313
12(48)(62)

25
88,812
65,66845,985
6,857
1,392
2,966
8,465
0
1
1
23,135
7
4,209

29
92,22567,798
48,111
7,098
1,515
1,877
9,195
04
4
24,41834,680--503
4802222
3,706
2,639(1,166)
1,472
2,233890
864
25
25
3,790
2,417(1,213)
1,203
2,586

3. Financial Summary (Year-on-Year Comparison)(Millions of yen)
For the year ended For the year ended Change
March 31, 2015
March 31, 2016 (Amount)

Ordinary Income (expenses)

Gross direct premiums written(Direct premiums written)
Underwriting income(Net premiums written)
Underwriting expenses(Net losses paid)(Loss adjustment expenses)(Net commissions and brokerage fees)
Investment income(Interest income and dividends)(Gains on sale of securities)
Investment expenses(Losses on sale of securities)
Operating, general and administrative
expenses(Operating, general and administrative
expenses related to underwriting)

Extraordinarygains (losses)

Other ordinary income, net
Ordinary profit(Underwriting profit)
Extraordinary Gains
Extraordinary Losses
Extraordinary gains (losses), net
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net Income
Net loss ratio
Net expense ratio
Yield on investments (income basis)
Yield on investments (realized basis)

Change(%)

Ratios90,49590,49591,761
91,712
65,66845,985
6,857
1,392
1,235
1,268
15
1
1

94,336
94,336
95,612
95,54967,798
48,111
7,098
1,515
1,263
1,313
12
4
4

3,841
3,841
3,850
3,837
2,129
2,125
241
123
28
45
(3)
3
3

4.2 %
4.2
4.2
4.2
3.2
4.6
3.5
8.9
2.3
3.6
(20.8)
372.7
372.7

23,13524,418

1,283

5.5

23,05324,347

1,293

5.6

17
4,209
3,044
－
503
(503)
3,706
2,639
(1,166)
1,472
2,233
57.6%
26.7%
1.10%
1.11%

25
4,680
3,470－
890
(890)
3,790
2,417
(1,213)
1,203
2,586
57.8%
27.1%
1.03%
1.03%

8
470
426－
386(386)
84(221)
(47)
(269)
353

46.1
11.2
14.0－
76.9－
2.3(8.4)－(18.3)15.8(Reference)
Yield on investments (market value basis) : 2.44% for the year ended March 31, 2015 and 2.05% for the year ended March 31, 2016.
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 is 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 the denominator.
• 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• 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• 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 previousperiod*)• 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(Millions of yen)

Direct Premiums Written
For the year ended
March 31, 2015
AmountFireMarine
Personal accident
Voluntary automobile
Compulsory automobile liability
Total3328,576
81,58590,495Composition YoY Change%%
0.4
21.0
9.5
2.6
90.2
3.6
100.0
3.6

For the year ended
March 31, 2016
Amount348
8,679
85,30894,336(Millions of yen)

Net Premiums Written

For the year ended
March 31, 2016

For the year ended
March 31, 2015
AmountFire
MarinePersonal accident
Voluntary automobile
Compulsory automobile liability
Total

45
110
8,845
81,375
1,335
91,712Composition YoY Change%%
0.0(56.4)
0.1(27.9)
9.6
2.7
88.7
3.7
1.5
6.4
100.0
3.5

Amount4444
8,953
85,123
1,38495,549

Composition YoY Change%%0.0(2.8)
0.0(59.7)
9.4
1.2
89.1
4.6
1.4
3.6
100.0
4.2
(Millions of yen)

Net Losses Paid
For the year ended
March 31, 2015
AmountFireMarine
Personal accident
Voluntary automobile
Compulsory automobile liability
Total

Composition YoY Change%%
0.4
4.6
9.2
1.2
90.4
4.6
100.0
4.2

3902,265
42,414
1,212
45,985YoY Change Net loss ratio%%(6.3)45.3(30.1)
81.7
9.7
28.7(1.0)
60.2
7.9
90.8(0.4)
57.6

5. Risk-Monitored Loans
Not applicable7

For the year ended
March 31, 2016
Amount1
46
2,472
44,3201,270
48,111YoY Change Net loss ratio%%(46.1)
65.7(48.9)
103.7
9.1
30.5
4.5
60.1
4.8
91.8
4.6
57.8

6. Securities(1) Trading-purpose securities
Not applicable(Millions of yen)(2) Held-to-maturity securities
As of March 31, 2015

Fair value is higher thanbalance sheet amount

JGBs, other bonds
Foreign securities
Subtotal

Total

Balance sheet
amountFair value

68,986
197
69,183
69,183

77,952
222
78,17478,174As of March 31, 2016

Difference

Balance sheet
amountFair value

Difference

8,965
24
8,990
8,990

71,050197
71,24871,24892,796221
93,01793,017

21,745
23
21,76921,769(Millions of yen)
As of March 31, 2015
As of March 31, 2016
Balance sheet Acquisition
Balance sheet Acquisition
Difference
Difference
amountamountcost
cost
JGBs, other bonds
30,042
29,951
91
45,05444,787
266
Balance sheet amount isJapanese stocks
2,548
729
1,819
3,708
729
2,978
higher than acquisition cost
Subtotal
32,59130,681
1,910
48,76245,517
3,245
JGBs, other bonds
8,648
8,658
(10)
6,190
6,201(10)Balance sheet amount is
Others
1,385
1,385
1,055
1,055
lower than acquisition cost
Subtotal
10,033
10,044(10)
7,245
7,256
(10)
Total
42,62540,725
1,899
56,00852,774
3,234(3) Available-for-sale securities(4) Available-for-sale securities sold during the fiscal year
For the year ended March 31, 2015

JGBs, other bonds(Millions of yen)
For the year ended March 31, 2016

Amount ofsales

Total gains
on salesTotal losses
on salesAmount ofsales

Total gains
on salesTotal losses
on sales

6,952

15

1

9,480

1248

7. Non-consolidated Solvency Margin Ratio(A) Total non-consolidated solvency margin
Capital or treasury
Reserve for price fluctuations
Contingency reserve
Catastrophe reserve
General reserve for possible loan losses
Net unrealized gains on other securities
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
(R1+R2)2+(R3+R4)2+R5+R6
Ordinary insurance risk
(R1)
Third-sector insurance risk (R2)
Assumed interest rate risk
(R3)
Asset management risk
(R4)
Business management risk (R5)
Major catastrophe risk
(R6)(C) Non-consolidated solvency margin ratio[(A)／{(B)×1/2}]×100
Note:(Millions of yen)
As of March 31, 2015 As of March 31, 2016
36,65042,701
23,38924,682
124
149
82
91
11,344
14,363
1,709
2,910
--

11,641
10,465
86
1,101
371
737
629.6 %

502
12,313
10,906
96
1,416
269
1,033
693.5 %

The figures were calculated based on the provisions in Articles 86 and 87 of the Ordinance for Enforcement of the Insurance
Business Act of Japan and the 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 sufficientability 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) indicates dangers outside the generalscope of expectations. 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 indicated by (A).
“Risk events outside the normal scope of expectations” refers to the total of the amounts represented by the following risk
(1) Insurance underwriting risk (Ordinary insurance risk, Third-sector insurance risk))
Risk outside the scope of risk incorporated into the rate of accident occurrence (excluding major catastrophe risk)(2) Assumed interest rate risk
Risk that actual investment yields will fall below the investment yield assumed when calculating 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 riskUnexpected 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)
A non-life insurer’s ability to pay (total non-consolidated solvency margin), as indicated by such factors as its capitaland reserves, is the total of the insurer’s net assets (excluding the amount of expected outflow from the company),
reserves (such as the reserve for price fluctuations and catastrophe reserve) and a portion of its net unrealizedgains 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