February 14, 2017
Sony Financial Holdings Inc.

Summary Information on Sony Assurance’s Financial Results
for the Nine Months Ended December 31, 2016
<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. Non-consolidated Solvency Margin Ratio

P.61

1. Balance Sheets(Millions of yen)
As of March 31, 2016

As of December 31, 2016

Assets:Cash and deposits

8,381

6,610

127,256

135,042

Tangible fixed assets

4,024

3,616

Intangible fixed assets

5,988

7,272

Other assets

20,363

19,743

Deferred tax assets

6,308

7,136

172,323

179,422

133,246

142,129

Reserve for outstanding losses and claims

37,542

39,046

Underwriting reserves

95,704

103,083

8,339

5,567

Income taxes payable

1,442

720

Others

6,897

4,846

Reserve for employees’ retirement benefits

1,281

1,407

Reserve for directors’ retirement benefits

4434

Reserve for employees’ bonuses

956

496

Reserve under the special laws

149

170

Reserve for price fluctuations

149

170

144,018

149,805

Common stock

20,00020,000Capital surplus

3,389

3,389

Retained earnings

2,586

4,918

Total shareholders’ equity

25,97628,308Net unrealized gains (losses) on other securities, netof taxes

2,328

1,309

Total valuation and translation adjustments

2,328

1,309

28,30529,617

172,323

179,422

Securities

Total Assets
Liabilities:
Underwriting reserves

Other 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 nine months ended
December 31, 2015
Ordinary Revenues

For the nine months ended
December 31, 2016

72,77675,94471,80374,323

71,762

74,273

41

50

952

1,595

(Interest income and dividends)

981

994

(Gains on sale of securities)

12650(Transfer to interest and dividends on deposits of premiums)

(41)

(50)

21

25

68,952

70,948Underwriting expenses

50,92452,556(Net losses paid)

35,51336,941(Loss adjustment expenses)

5,267

5,519

(Net commissions and brokerage fees)

1,123

1,212

(Provision for reserve for outstanding losses and claims)

1,651

1,503

(Provision for underwriting reserves)

7,368

7,378

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

Other ordinary income
Ordinary Expenses

Investment expenses(Losses on sale of securities)
Operating, general and administrative expenses
Other ordinary expenses
Ordinary Profit4-

4-

18,021

18,388

24

3,823

4,995

Extraordinary Gains-

Extraordinary Losses

-

883

20

Losses on sale or disposal of fixed assets

864

0Provision for reserve under the special laws

1920

1920

Income Before Income Taxes

2,940

4,975

Income Taxes –Current

1,489

1,780

Income Taxes –Deferred(675)(431)

Total Income Taxes

814

1,348

2,126

3,626

Provision for reserve for price fluctuations

Net Income3

3. Financial Summary (Year-on-Year Comparison)(Millions of yen)
For the nine months
ended
December 31, 2015

For the nine months
ended
December 31, 2016

Change(Amount)

Change(%)

Gross direct premiums written

70,81073,3172,507

3.5(Direct premiums written)

70,81073,317

2,507

3.5

71,80374,3232,520

3.5

71,762

74,2732,511

3.5

Underwriting expenses

50,92452,556

1,631

3.2(Net losses paid)

35,51336,941

1,428

4.0(Loss adjustment expenses)

5,267

5,519

251

4.8

(Net commissions and brokerage fees)

1,123

1,212

89

8.0

952

1,595

642

67.5

(Interest income and dividends)

981

994

13

1.4

(Gains on sale of securities)

12650

638

5,233.0

Underwriting income(Net premiums written)

Ordinary Income (expenses)

Investment income

Investment expenses(Losses on sale of securities)

4-(4)(100.0)4-(4)(100.0)Operating, general and administrative expenses

18,021

18,388366

2.0(Operating, general and administrative
expenses related to underwriting)

17,966

18,346

380

2.1

18

20

1

10.7

3,823

4,995

1,171

30.6

2,911

3,420

508

17.5

Other ordinary income, net
Ordinary profit(Underwriting profit)%

Extraordinary
Gains (losses)

Extraordinary Gains----

Extraordinary Losses

883

20(862)(97.7)

Extraordinary gains (losses), net

(883)

(20)

862

-

Income Before Income Taxes

2,940

4,975

2,034

69.2

Income Taxes —Current

1,489

1,780

290

19.5

Income Taxes —Deferred(675)

(431)

243

Total Income Taxes

814

1,348534

65.7

2,126

3,626

1,499

70.5

Net loss ratio

56.8%

57.2%

Net expense ratio

26.6%

26.3%

Net Income-Ratios

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 nine months ended
December 31, 2015
Composition

Amount

For the nine months ended
December 31, 2016

Fire259

MarinePersonal accident

6,496

Voluntary automobile

64,053

Total

70,810

%
170-

9.2

6,583

4.5-

100.0

1.3

90.8-

4.2

(34.4)-9.0

66,563
-%

0.2-

1.1

90.5-

Compulsory automobile liability

26.1-

YoY Change

Composition

%

0.4
-

AmountYoY Change%

73,317

3.9-

-

100.0

3.5

Net Premiums Written(Millions of yen)

For the nine months ended
December 31, 2016

For the nine months ended
December 31, 2015
AmountComposition

AmountYoY Change%

Composition%

YoY Change%%

Fire

35

0.0

25.0

180.0

(48.9)

Marine360.1(64.3)(2)(0.0)(106.8)Personal accident

6,721

9.4

1.2

6,811

9.2

1.3

Voluntary automobile

63,91389.14.566,371

89.4

3.8

Compulsory automobile liability

1,055

1.5

6.1

1,074

1.4

1.9

Total

71,762100.0

4.1

74,273100.0

3.5

Net Losses Paid(Millions of yen)

For the nine months ended
December 31, 2015
AmountYoY Change

For the nine months ended
December 31, 2016

Net loss ratio%

AmountYoY Change%

Net loss ratio
%

%

Fire

1(46.5)

60.0

5

335.4

Marine

122

48.3

337.3

(9)

(107.6)

Personal accident

1,838

7.2

30.5

1,919

4.4

31.2

Voluntary automobile

32,587

5.3

58.9

34,0344.4

59.3

9634.9

91.3

991

2.9

92.2

35,513

5.5

56.8

36,941

4.0

57.2

Compulsory automobile liability

Total

5127.6-5. Non-consolidated Solvency Margin Ratio(Millions of yen)
As of March 31, 2016
(A) Total non-consolidated solvency margin
Capital or treasury, etc.

As of December 31, 2016

42,701

48,746

24,68228,308Reserve for price fluctuations

149

170

Contingency reserve

91

98

Catastrophe reserve

14,363

16,720General reserve for possible loan losses
Net unrealized gains on other securities and net deferred gains(losses) on hedging instruments (before tax deductions)
Net unrealized gains on real estate

2,910

1,636

-

-

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

502

1,812

12,313

12,641

10,906

11,239Ordinary insurance risk

(R1)

Third-sector insurance risk

(R2)

-

Assumed interest rate risk

(R3)

96

103

Asset management risk

(R4)

1,416

1,361Business management risk

(R5)269274(R6)Major catastrophe risk(C) Non-consolidated solvency margin ratio

1,033

1,032

693.5 %

771.1 %[(A)／{(B)×1/2}]×100-Note: The above figures are calculated based on the provisions in Articles 86 and 87 of the Ordinance for Enforcement ofthe Insurance Business 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 amountsat 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 indicated by (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
(3) Asset management risk
(4) Business management risk(5) Major catastrophe 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 and other assets: Unexpected risk to business management other than (1) through (3) above and (5): 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 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 for price 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.

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