May 15, 2017
Sony Financial Holdings Inc.

Summary Information on Sony Life’s Financial Results
for the Year Ended March 31, 2017
<Contents>
1. Key Performance Results

P.2

2. Policy Amount in Force by Insurance Function as of March 31, 2017

P.4

3. Example of Policyholder Dividend, based on Figures for the Year Ended March 31, 2017

P.5

4. Status of Investment Assets (General Account) for the Year Ended March 31, 2017

P.6

5. Non-consolidated Balance Sheets

P.13

6. Non-consolidated Statements of Income

P.14

7. Reconciliation to Core Profit and Non-Consolidated Ordinary Profit

P.15

8. Loans by Borrower Category

P.16

9. Risk-monitored Loans

P.16

10. Solvency Margin Ratio

P.17

11. Status of Separate Account Assets for the Year Ended March 31, 2017

P.19

12. Consolidated Summary

P.20

1

1. Key Performance Results(1) Policy Amount in Force and New Policy Amount(Number: Thousand, Amount: 100 millions of yen, %)Policy amount in force

As of March 31, 2016
Category

NumberComparison to
March 31, 2015

AmountAs of March 31, 2017
Comparison to
March 31, 2015

NumberComparison to
March 31, 2016

AmountComparison to
March 31, 2016

Individual life insurance
6,880
105.0
422,937
104.7
7,112
103.4
443,133
104.8
Individual annuities
166
139.3
8,560
143.2
196
118.2
10,208119.2
Group life insurance－－
15,993110.9－－
18,510115.7Group annuities
－
－
130
76.1
－
－
115
88.4
Notes:
1. The policy amount in force for individual annuities are equal to the sum of (a) the funds to be held at the time annuity payments are to commence
for policies for which annuity payments have not yet commenced and (b) the amount of policy reserves for policies for which payments havecommenced.
2. The policy amount in force for group annuities is equal to the amount of outstanding policy reserves.
(Number: Thousand, Amount: 100 millions of yen, %)New policy amountFor the year ended March 31, 2016
Category

Individual life insurance
Individual annuities
Group life insuranceGroup annuities

Number579
50－－

Comparison
to FY2014
100.1
182.3
－
－

Amount48,7102,803
10－Amount,Amount,of which,of which,increase fromnew policies
conversion
105.3
48,710
－
192.1
2,803
－
20.1
10
－
－

Comparison
to FY2014

For the year ended March 31, 2017
Category

NumberComparison
to FY2015

AmountAmount,Amount,of which,of which,increase fromnew policies
conversion
97.8
47,652
－
68.6
1,922
－
4,468.6
474－－

Comparison
to FY2015

Individual life insurance
479
82.7
47,652
Individual annuities
34
68.0
1,922
Group life insurance－－
474
Group annuities－－－
Notes:
1. The new policy amount including increase from conversion for individual annuities is equal to the funds held at the time annuity
payments commence.
2. The new policy amount for group annuities is equal to the initial premium payment.

(2) Annualized Premiums(Millions of yen, %)Policy amount in force

Category
Individual life insurance
Individual annuities

Total
Of which, medical protection, living
benefit protection and other products

As of March 31, 2016

Comparison to
March 31, 2015

As of March 31, 2017

Comparison to
March 31, 2016

751,820
29,495
781,315

105.2
139.7
106.2

787,005
33,851820,856

104.7
114.8
105.1

179,707

104.0

187,449

104.3(Millions of yen, %)New policies

Category
Individual life insurance
Individual annuities

Total
Of which, medical protection, living
benefit protection and other products

For the year ended
March 31, 2016
76,334
8,684
85,018Comparison
to FY2014
106.3
180.3
111.0

15,717102.8

For the year ended
March 31, 2017
72,786
5,340
78,127Comparison
to FY2015
95.4
61.5
91.9

15,718100.0

Notes:
1. Annualized premiums refer to an amount that is calculated by multiplying individual premium amounts by a coefficient that differs
depending on the premium payment methods, thereby converting the figure to a per-year premium. (For single payment policies, premiums are
divided by the number of coverage years.)
2. “Medical protection, living benefit protection and other products” indicates the portion of annualized premiums for medical protection benefits(hospitalization benefits, surgical procedure benefits, etc.) and products with living benefit protection (benefits for specific illness, nursing
care benefits, etc.).
2

(3) Major P/L Items
Category(Millions of yen, %)For the year ended
March 31, 2016

Comparison
to FY2014

For the year ended
March 31, 2017

Comparison
to FY2015

1,028,048

112.5

956,733

93.1

Investment income

170,51760.9

245,339

143.9

Insurance claims and other payments

363,370

94.9

372,407

102.5

Investment expenses

23,399240.6

36,196

154.7

Ordinary profit

60,792

76.3

60,18099.0

Income from insurance premiums(4) Total Assets
Category
Total assets(Millions of yen, %)As of March 31, 2016
8,035,408

3Comparison to
March 31, 2015

110.1

As of March 31, 2017
8,873,613

Comparison to
March 31, 2016110.4

2. Policy Amount in Force by Insurance Function as of March 31, 2017
(Number: Thousand, Amount: 100 millions of yen)
Total

Individual life insurance

Individual annuities

Group life insurance

NumberAmountNumberNumberAmountNumberAmountOrdinary death

5,880

424,253

-

-

1,658

18,5107,538

442,764

Accidental death700

61,569

-

-

12

3

712

61,572

Death protection
with otherconditions

318

11,798

-

-

-

-

318

11,7981,231

18,880196

10,208

0

0

1,428

29,088

Accidental
hospitalization

2,703

181

-

-

11

0

2,715

182

Sickness
hospitalization

2,703

181

-

-

-

-

2,703

181

Hospitalization
with otherconditions

838

70

-

-

-

-

838

70

Disability protection

676

-

-

-

11

-

688

-

Surgery protection

1,690

-

-

-

-

-

1,690

-

Category

Death protection

Living protection
Hospitalization protection

Category
Living protection

Category

Amount77

Number115

Total

Amount-Medical protection
insurance
NumberHospitalization
protection

Asset-formation insurance,
asset-formation annuities

Group annuities
NumberAmount-NumberAmount77

115

Category

Amount-Disability insurance
NumberDisability protection-

Notes:
1. The numbers of policies for group life insurance products, and group annuity product reflects thetotal numbers of insured parties.
2. Of the policy amount in the living protection column, policy amount in force for individual annuities
and group life insurance (annuity payment rider) is equal to the sum of (a) the funds to be held at the timeannuity payments are to commence for policies for which annuity payments have not yet commenced and(b) the amount of policy reserves for policies for which payments have commenced.
The policy amount in force for group annuity products is the amount of outstanding policy reserves.
3. Figures for hospitalization protection show the daily benefits for hospitalization.

4

Amount--3. Example of Policyholder Dividend, based on Figures for the Year Ended March 31, 2017(1) Standard dividend yields for semi-participating individual life insurance with policyholder dividends
every five years
For the year
For the year
ended
ended
March 31, 2016 March 31, 2017
Level-premium

Assumed interest rates of 1.00% or less
Assumed interest rates of more than 1.00%,
2.00% or less
Assumed interest rates of more than 2.00%

-

0.70%

1.55%

1.55%

1.40%

1.40%

-

0.35%

1.20%

1.20%

1.05%

1.05%

Single premium and others

Assumed interest rates of 0.85% or less
Assumed interest rates of more than 0.85%,
2.00% or less
Assumed interest rates of more than 2.00%(2) Below is an example of policyholder dividends for semi-participating whole life nursing-care insurance(before annuity payments commence) using figures for the fiscal year ended March 31, 2017.
Example: Semi-participating whole life nursing-care insurance (before nursing care annuity payments commences)Entered at 30, male, lump-sum payment, 10x death benefit, basic care annuity amount of 0.5 million yen

Contract Date

Assumedinterest rate

November 2, 2015
November 2, 2014
November 2, 2013
November 2, 2012
November 2, 2011
November 2, 2010
November 2, 2009
November 2, 2008
November 2, 2007

Years
elapsed2 years
3 years
4 years
5 years
6 years
7 years
8 years
9 years
10 years

1.00%
1.00%
1.00%
1.50%
1.50%
1.50%
1.50%
1.50%
1.50%

Policies to which
nursing care applies,
ending at death of policyholder(yen)

Ongoing
policy(yen)
0015,16522,91730,790
0
0
0
0
0
0

Note:
1. The “Policies to which nursing care applies, ending at death of policyholder” column shows the amount receivable fornursing care or upon death. The number of years elapsed is the number through November 2, 2017.
2. The above-stated dividend amount is the sum of the pro-rated dividend amount (policy reserve × dividend participation
ratio) and interest through November 2, 2017 (excluding dividends already paid).
Dividend participation ratio = Standard dividend yield - Assumed interest rate
3. Sony Life has suspended selling this product from July, 2016.

(3) Standard dividend yield on group annuities
The standard dividend yield on group annuities is 1.80%, using figures for the fiscal year ended March 31, 2017
Note: Dividend participation is calculated as follows:
Dividend amount = Policy reserve × Dividend participation ratio
Dividend participation ratio = Standard dividend yield - Assumed interest rate(4) For group term life insurance and other products, a reserve for policyholders’ dividends
is accumulated in accordance with each product’s characteristics

5

4. Status of Investment Assets (General Account) for the Year Ended March 31, 2017(1) Status of Investment Assets for the Fiscal Year Ended March 31, 2017
1) Investment Environment
During the fiscal year ended March 31, 2017, the Japanese economy continued to grow gradually. Year on year, real GDP
growth was positive 2.2% p.a. for the April–June 2016 quarter, positive 1.2% p.a. for the July–September quarter, and positive
1.2% p.a. for the October–December quarter. The growth rate is forecast at positive 1.36% p.a. for the January– March 2017
quarter. 1From the July–September quarter, exports increased, driven mainly by resurgence in emerging economies, andimproved business sentiment prompted a rebound in capital expenditure, supporting the Japanese economy. However, theimproved employment and income environment failed to sufficiently affect personal consumption, limiting the domestic
economic recovery to a modest level. Moving into 2017, downward price pressure from falling energy prices eased, and thecore consumer price index turned positive, although remaining at a low, near-zero level.
The Japanese bond market was characterized by rising interest rates up through the second half of the fiscal year. Looking
at yields on 10-year Japanese government bonds (JGBs), the Bank of Japan (BOJ)’s introduction of a qualitative andquantitative monetary easing policy featuring negative interest rates and stepped-up buying operations prompted a tighteningof the supply/demand situation in the market, causing interest rates to dip to the negative 0.3% level at one point during thesummer. Thereafter, the BOJ conducted “comprehensive verification” of monetary easing and transitioned to a qualitative andquantitative monetary easing policy with long- and short-term interest rate controls. This move, combined with moves bymajor countries’ central banks to curb monetary feasing and shift interest rates in a positive direction led to a rise in interest
rates. As of March 31, 2017, the long-term interest rate was 0.067%, up +0.116 percentage point from a year earlier.
Stock market performance was up through the second half of the fiscal year. The United Kingdom’s June 2016 decision toexit the European Union prompted a global move to unwind risk, pulling the Nikkei Stock Average below the ¥15,000 level at
one stage. Thereafter, however, the BOJ’s policy of increasing purchases of exchange-traded funds provided stock pricesupport. This factor, plus expectations of an expansionary fiscal policy by the new President Trump in the United States,
prompted yen depreciation in foreign exchange markets. As a result, stock prices were up sharply by the year-end. As of
March 31, 2017, the Nikkei was at ¥18,909.26, ¥2,150.59 higher than on March 31, 2016.
Foreign exchange markets moved within a wide range. In the first half of the fiscal year, a consensus emerged that theinterest rate rise by the U.S. Federal Reserve Board (FRB) would be only gradual. This factor, plus the impact of the U.K. voteto leave the European Union caused yen appreciation/dollar depreciation to the level of US$1.00=¥99 at one point. However,the victory of Republican Party candidate Donald Trump in the U.S. presidential elections in November prompted expectationsof inflation stemming from the incoming administration’s expansionary fiscal policy. This also caused a rise in U.S. interest
rates. These (two) factors led to rapid yen depreciation/dollar appreciation. As of March 31, 2017, the yen was trading at¥112.19 against the dollar, essentially unchanged from ¥112.68 one year earlier.
2) Investment Policy
Our investment policy is based on asset liability management (ALM), a strategy stemming from an understanding of thecharacteristics of insurance liabilities and prioritizing investments in assets that have corresponding characteristics.
Specifically, as life insurance policies represent long-term liabilities, we invest primarily in ultralong-term JGBs that have along term remaining until maturity. This approach allows us to appropriately control the risks associated with interest rate
fluctuations on insurance liabilities. Meanwhile, we limit our investments in risky investments such as equities.
3) Results of Investment
As of March 31, 2017, general account assets totaled ¥7,884.0 billion, up 9.7%, or ¥698.9 billion, from a year earlier. Within
general account assets, domestic bond investment totaled ¥6,828.7 billion (accounting for 86.6% of total general accountassets), foreign bonds ¥274.3 billion (3.5%), Japanese stocks ¥37.6 billion (0.5%), monetary trusts ¥273.8 billion (3.5%),
policy loans ¥180.3 billion (2.3%), real estate ¥117.5 billion (1.5%), and cash and cash deposits and call loans ¥40.8 billion(0.5%).

1 ESP Forecast Survey, Japan Center for Economic Research

6(2) Portfolio of General Account Assets
Category(Millions of yen, %)As of March 31, 2016
AmountAs of March 31, 2017%

Cash and deposits, call loans

Amount%52,551

0.7

40,896

0.5

Securities repurchased under resale agreements

－

－

－

－

Pledged money for bond borrowing transaction

－

－

－

－

Monetary claims purchased

－

－

－

－

Securities under proprietary accounts

－

－

－

－

280,973

3.9

273,877

3.5

6,479,336

90.2

7,173,927

91.0

Monetary trusts
Securities
Japanese bonds (including JGBs)

6,351,176

88.4

6,828,743

86.6

Japanese stocks

33,364

0.5

37,6590.5Foreign securities

93,1401.3

305,846

3.9

Bonds

70,134

1.0

274,306

3.5

Stocks, etc.

23,0050.3

31,5390.4

Other securities

1,654

0.0

1,678

0.0

Loans

171,649

2.4

180,374

2.3

Real estate

115,816

1.6

117,525

1.5

－

－

5,350

0.1

Other assets

85,031

1.2

92,328

1.2

Reserve for possible loan losses

(272)

(0.0)

(271)

(0.0)

Total

7,185,084

100.0

7,884,008

100.0

Of which, foreign-currency-denominated assets

91,8171.3

309,046

3.9

Deferred tax assets

Note: The amount for real estate is equivalent to the total amount of land, buildings and construction in progress.

(3) Changes in General Account Assets by Categories(Millions of yen)
Category

For the year ended March 31, 2016

Cash and deposits, call loans

For the year ended March 31, 2017

(4,267)(11,655)

Securities repurchased under resale agreements－－

Pledged money for bond borrowing transaction－－

Monetary claims purchased－－

Securities under proprietary accounts－－

Monetary trusts(32,302)(7,095)

Securities

696,043694,591

Japanese bonds (including JGBs)

744,291

477,566

Japanese stocks(9,131)

4,294

Foreign securities(38,487)

212,705

Bonds(35,422)204,172

Stocks, etc.

(3,065)

8,533

Other securities

(629)

24

Loans

9,249

8,725

Real estate(1,948)

1,708

Deferred tax assets

－

5,350

10,309

7,297

(4)

1

Total

677,078

698,923

Of which, foreign-currency-denominated assets

9,658

217,228

Other assets
Reserve for possible loan losses

Note: The amount for real estate is equivalent to the total amount of land, buildings and construction in progress.

7(4) Investment Income(Millions of yen)

For the year ended
March 31, 2016

Category
Interest income and dividends

For the year ended
March 31, 2017

141,450

Interest income from deposits

148,28400124,943

130,772

Interest income from loans

6,174

6,377

Income from real estate for rent

10,261

10,86971

265Interest income and dividends from securities

Other income from interests and dividends
Gains on securities under proprietary accounts－－

Income from monetary trusts, net

11,973

4,493

Income from trading securities, net

98

152

12,204

1,308

11,247

20

Gains on sale of securities
Gains on sale of Japanese bonds (including JGBs)
Gains on sale of Japanese stocks, etc.

882－

Gains on sale of foreign securities

75

1,287

Other

－

－

－

－

4,768

－

Foreign exchange gains, net－

14,670

Reversal of reserve for possible loan losses－

1

Other investment income

21

4

170,517

168,915

Gains on redemption of securities
Gains on derivatives, net

Total(5) Investment Expenses(Millions of yen)

For the year ended
March 31, 2016

Category

For the year ended
March 31, 2017

Interest expense

53

44

Losses on securities under proprietary accounts－－

Losses on monetary trusts, net－－

Losses on trading securities, net－－

Losses on sale of securities－－

Losses on sale of Japanese bonds (including JGBs)－－

Losses on sale of Japanese stocks－－

Losses on sale of foreign securities

－

－

Other

－

－

－

－

Devaluation losses on Japanese bonds (including JGBs)－－

Devaluation losses on Japanese stocks－－

Devaluation losses on foreign securities

－

－

Other

－

－

Devaluation losses on securities

Losses on redemption of securities

1

53

Losses on derivatives, net－

30,050Foreign exchange losses

2,798

－

Provision for reserve for possible loan losses

5－

Write-off of loans－－

Depreciation of real estate for rent and others

1,936

1,879

Other investment expenses

3,868

4,167

8,664

36,196Total
8

(6) Investment Efficiency(i) Investment yield by type of asset(%)

Category

For the year ended
March 31, 2016

For the year ended
March 31, 2017

Cash and deposits, call loans

0.05

0.00

Securities repurchased under resale agreements--

Pledged money for bond borrowing transaction--

Monetary claims purchased--

Securities under proprietary accounts--

Monetary trusts

4.84

1.94

Securities

2.23

2.19

Japanese bonds (including JGBs)

2.16

1.88

Japanese stocks

4.90

2.80

Foreign securities

4.13

13.41

Loans

3.71

3.64

Real estate

4.90

5.52

2.42

1.81

4.09

13.25

Total
Of which, overseas investment
Notes:

1. The denominator for the investment yield calculation is a daily averaged carrying amount, while the numerator is investment
income minus investment expenses.
2. Valuation gains for Article 112 of the Insurance Business Act of Japan are not accounted for.
3. Yield on overseas investment is a total of foreign-currency-denominated assets and yen-denominated assets.
(ii) Valuation gains (losses) on trading-purpose securities(Millions of yen)

As of March 31, 2016
Category
Trading-purpose securities
Note:

As of March 31, 2017

Net valuation gains(losses) recorded inincomeBalance sheet
amount2,215

153

The above table includes trading-purpose securities included in “monetary trusts” etc.

9Balance sheet
amount2,054

Net valuation gains(losses) recorded inincome(162)

(iii) Fair Value Information on Securities
a. Fair value information on securities with market value (except trading-purpose securities)(Millions of yen)

As of March 31, 2016
Category

Net unrealized gains (losses)

Carrying
amountHeld-to-maturity securities
Policy-reserve-matching bonds

Fair value

Unrealized Unrealized
gains
losses5,383,938

7,410,168

2,026,230

2,026,230

251,260

292,566

41,30541,306

Stocks of subsidiaries and affiliated companies
Available-for-sale securities

As of March 31, 2017

-

-

-

0
-

1,091,602

203,629

203,739

Japanese bonds (including JGBs)

854,339

1,040,351

186,011

186,011

Japanese stocks

13,62525,664

12,03912,04910Foreign securities

19,842

25,279

5,436

5,536

99

19,842

Stocks, etc.

25,279-Other securities

165

5,436
-

307

109
-

5,536
-

99
-

142

Fair value

142

Unrealized Unrealized
gains
losses

6,068,671

7,514,255

1,445,584

1,521,504

75,919277,372

303,356

25,98327,876

1,893-

887,973

Bonds

Net unrealized gains (losses)

Carrying
amount

-

-

-

-

-

896,527

1,069,920

173,392

174,667

852,604

1,013,331

160,726

160,726

13,68527,082

13,396

13,45558

30,071

29,193

(878)

337

1,215

337

18,545

17,996(548)-

11,525

11,196

(329)

-

165

313

147

1,274
-

886
-

329

147

-

Monetary claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

-

Total

6,523,172

8,794,337

2,271,165

2,271,276

110

7,242,571

8,887,532

1,644,961

1,724,048

79,087

6,444,682

8,689,521

2,244,838

2,244,838

0

6,942,338

8,595,523

1,653,185

1,707,293

54,108Japanese stocks

13,62525,664

12,03912,04910

13,68527,082

13,396

13,45558

Foreign securities

64,69878,84414,146

14,24599

286,381

264,612(21,768)

3,151

24,9203,151

Japanese bonds (including JGBs)

Bonds

64,698Stocks, etc.

78,844-

Other securities

165

14,146-307

14,245
-

142

99
-

142

274,855

253,416(21,439)-

11,525

11,196

(329)

-

165

313

147

24,590
-

147

329
-

Monetary claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

-

Notes:
1. The above table includes assets which are permitted to be treated as equivalent to securities defined in the Financial Instruments and Exchange Act of Japan.
2. Carrying amount and net unrealized gains (losses) on monetary trusts, including items other than trading-purpose securities, amounted to ¥232,402 million and ¥41,919 million, respectively.

b. Carrying amounts of the securities without market value(Millions of yen)

Category

As of March 31, 2016

As of March 31, 2017

Held-to-maturity securities--

Unlisted foreign bonds--

Others---

Policy-reserve-matching bonds-

Stocks of subsidiaries and affiliated companies

13,267

16,312Available-for-sale securities

12,301

9,896

Unlisted domestic stocks (except OTC stocks)

149

159

Unlisted foreign stocks (except OTC stocks)

439

608
-

Unlisted foreign bonds
Others
Total

10

-

11,712

9,127

25,56926,209c. Fair value information consisting of that stated in the previous table-a and foreign exchange and other gains (losses) for table-b as follows:(Millions of yen)

As of March 31, 2016
Category

Held-to-maturity securities
Policy-reserve-matching bonds

As of March 31, 2017

Net unrealized gains (losses)

Carrying
amountFair value

Unrealized Unrealized
gains
losses5,383,938

7,410,168

2,026,230

2,026,230

251,260

292,566

41,30541,306

Stocks of subsidiaries and affiliated companies

13,267

13,267Available-for-sale securities

900,274

1,109,405

209,130

209,792

Japanese bonds (including JGBs)

854,339

1,040,351

186,011

186,011

Japanese stocks

13,77525,814

12,03912,049Foreign securities

20,281

27,271

6,989

7,089

19,842

25,279

5,436

5,536

Bonds

-

0
-

Stocks, etc.

439

1,992

1,552

1,552

Other securities

11,877

15,967

4,090

4,641

Net unrealized gains (losses)

Carrying
amountFair value

Unrealized Unrealized
gains
losses

6,068,671

7,514,255

1,445,584

1,521,504

75,919277,372

303,356

25,98327,876

1,893-

16,312

16,312

661

906,423

1,083,838

177,414179,270852,604

1,013,331

160,726

160,726

10

13,84527,242

13,396

13,45558

99

30,68030,947

266

1,482

1,215

99

18,545

17,996

(548)

337

886

-

551

-

-

1,856
-

12,134

12,950

815

1,145

329

9,293

12,317

3,024

3,606

581

Monetary claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

-

Total

6,548,741

8,825,407

2,276,666

2,277,328

662

7,268,780

8,917,763

1,648,982

1,728,652

79,6696,444,682

8,689,521

2,244,838

2,244,838

0

6,942,338

8,595,523

1,653,185

1,707,293

54,108Japanese stocks

20,34332,382

12,03912,04910

22,20835,605

13,396

13,45558

Foreign securities

Japanese bonds (including JGBs)

71,83787,536

15,69915,79899294,940

274,316(20,623)

4,296

24,920

Bonds

64,69878,84414,146

14,24599274,855

253,416(21,439)

3,151

24,590Stocks, etc.

7,139

8,692

1,552

1,552

20,08420,900

815

1,145

329

Other securities

11,877

3,024

3,606

15,967

4,090

-

4,641

551

9,293

12,317581

Monetary claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

-

11

(iv) Fair value information on monetary trusts(Millions of yen)

As of March 31, 2017

As of March 31, 2016
Category

Monetary trusts

Balancesheet
amountFair value

280,973

280,973

Unrealized Unrealized
gains
lossesBalancesheet
amountFair value-

273,877

273,877

Net unrealized gains (losses)--

Net unrealized gains (losses)
Unrealized Unrealized
gains
losses---Note: The above table includes ¥50 million of jointly invested monetary trusts.

Monetary trusts for investment(Millions of yen)

As of March 31, 2016
Category

Net valuation
gains (losses)
recorded in income

Balance sheet amount

Monetary trusts for investment

As of March 31, 2017-

Balance sheet amount-

Net valuation
gains (losses)
recorded in income--

Monetary trusts for held-to-maturity and policy-reserve-matching and other monetary trusts(Millions of yen)

As of March 31, 2017

As of March 31, 2016
Net unrealized gains (losses)

Category

Carrying
amountFair value

Net unrealized gains (losses)

Unrealized Unrealized
gains
lossesCarrying
amountFair value

Unrealized Unrealized
gains
lossesMonetary trusts for held-to-maturity

-

-

-

-

-

-

-

-

-

-

Monetary trusts for policy-reserve-matching

-

-

-

-

-

-

-

-

-

-

232,491

280,922

48,431

48,431-

231,907273,826

41,91941,919-Other monetary trusts

Note: Monetary trusts includes cash and call loans, etc., held in monetary trusts.

125. Non-consolidated Balance Sheets(Millions of yen)
As of
As of
March 31, 2016 March 31, 2017
AmountAmountAmountAssets:Cash and deposits
Cash
Deposits

As of
As of
March 31, 2016 March 31, 201718,39447,0162

2

18,39247,013

Policy reserves and others
Reserve for outstanding claims
Policy reserves

Call loans

88,20061,900

Monetary trusts

280,973

273,877

Due to agencies

7,273,361

8,093,192

Due to reinsurers

6,382,481

6,664,639

Other liabilities

Securities
Japanese government bonds
Japanese local government bonds

AmountLiabilities:

Reserve for policyholders' dividends

7,371,174

7,968,639

29,63532,965

7,336,533

7,929,944

5,006

5,729

2,455

2,616

621

3,663

104,996353,812
310,608

1,836

1,767

Collateral for securities lending transactions

62,804

Japanese corporate bonds

125,101

310,466

Accrued income tax

8,998

8,095

Japanese stocks

83,411

86,954

Other payables

2,765

2,137

Foreign securities

471,973782,064

Accrued expenses

18,92017,923

Other securities

208,556

247,299

Unearned revenue

995

1,067

171,649

180,374

Deposits received

1,594

2,094

171,649

180,339

Deposits received for guarantee-

34

116,256

Land
Buildings

Loans
Policy loans
Commercial loans
Tangible fixed assets

5,186

5,420

Variation margins of futures markets

168

446

118,441

Derivative liabilities

711

614

83,00783,007

Lease obligations

13

10

32,77734,442

Asset retirement obligations

679

2,156

Leased assets

12

10

2,157

3,235

Construction in progress

31

75

Reserve for employees' retirement benefits

Suspense receipt

21,944

24,678Other tangible fixed assets

427

906

Reserve for directors' retirement benefits

121

119

44,26046,00544,26046,005Intangible fixed assets

19,171

19,356

Software

19,162

19,347

9

9

Deferred tax liabilities-

0

Deferred tax liabilities on land revaluation

Other intangible fixed assets
Due from agencies
Due from reinsurers
Other assets
Other receivables

298

1,393

64,99874,24533,40735,316

Reserve under the special laws
Reserve for price fluctuations

Total Liabilities

7,151

-

488

488

7,553,212

8,400,024

Prepaid expenses

1,216

1,651

Net Assets:

Accrued income

17,205

18,621

Common stock

70,00070,000Capital surplus

5,865

5,865

Money on deposits

5,313

5,269

Initial margins of futures markets

4,797

7,302

979

435

1,640

5,212

359

370

Variation margins of futures markets
Derivatives
Advance payments
Other
Prepaid pension costs
Deferred tax assets
Reserve for possible loan losses
Reserve for possible investment losses

Capital reserve
Retained earnings

5,865

257,175

271,416

Earned reserve

26,11830,318Other retained earnings

231,056

241,098

77

65

231,056

241,098

2,377

2,376

Total shareholders' equity

333,040

347,281-5,350

Net unrealized gains (losses) on other securities, net of taxes

150,621

127,772

(272)

(271)

-

(3,640)8,035,408

8,873,613

Unappropriated retained earnings

Land revaluation, net of taxes(1,465)(1,465)

Total valuation and translation adjustments

149,155

126,307

Total Net Assets
Total Assets

5,865

Total Liabilities and Net Assets

13

482,195

473,589

8,035,408

8,873,613

6. Non-consolidated Statements of Income(Millions of yen)

For the ｙear ended
March 31, 2016
Ordinary Revenues
Income from insurance premiums
Insurance premiums
Ceded reinsurance commissions
Investment income
Interest income and dividends
Interest income from deposits
Interest income and dividends from securities
Interest income from loans
Rent revenue from real estate
Other interest income and dividends
Income from monetary trusts, net
Gains on trading securities, net
Gains on sale of securities
Gains on derivatives, net
Foreign exchange gains, net
Reversal for reserve for possible loan losses
Other investment income
Gains on separate accounts, net
Other ordinary income
Income for annuity riders
Income for deferred payment of claims
Other ordinary income
Ordinary Expenses
Insurance claims and other payments
Insurance claims
Annuity payments
Insurance benefits
Surrender payments
Refund to policyholders
Reinsurance premiums
Provision for policy reserves and others
Provision for reserves for outstanding claims
Provision for policy reserves
Interest on policyholders' dividend reserve
Investment expenses
Interest expenses
Losses on redemption of securities
Losses on derivatives, net
Foreign exchange losses, net
Provision for reserve for possible loan losses
Depreciation of real estate for rent and others
Other investment expenses
Losses on separate accounts, net
Operating expenses
Other ordinary expenses
Payments of deferred claims
Taxes
Depreciation and amortization
Provision for reserve for employees' retirement benefits
Provision for reserve for directors' retirement benefits
OthersOrdinary Profit
Extraordinary Gains
Reversal of reserve for investment losses
Extraordinary Losses
Losses on disposal of fixed assets
Impairment losses
Provision for reserve under the special laws
Provision for reserve for price fluctuations
Valuation losses on stock of equity method affiliatedcompanies
Provision for reserve for investment losses
Provision for Reserve for Policyholders' Dividends
Income Before Income Taxes
Income Taxes - Current
Income Taxes -Deferred
Total Income Taxes
Net Income

1,230,141
1,028,048
1,026,407
1,640
170,517
141,450
0124,943
6,174
10,261
71
11,97398
12,2044,768
21
31,5752,352
26,8282,394
1,169,348
363,370
84,283
11,496
74,842
184,936
5,711
2,099
613,480
4,185
609,291
2
23,399
53
1
2,798
5
1,936
3,868
14,735
133,334
35,764
14,93912,373
5,342
3,077
30
0
60,792
6,352
6,352
8,466
7
362
1,415
1,415

14

For the year ended
March 31, 2017
1,243,739
956,733
954,0282,704
245,339
148,2840130,772
6,377
10,869
265
4,493
152
1,308
14,6701
476,423
41,666
3,001
33,8794,785
1,183,558
372,407
84,17812,01998,252
168,409
3,122
6,423
596,7423,330
593,411
0
36,1964453
30,0501,879
4,167
137,094
41,11819,88912,171
5,299
3,745
12
60,180
5,445
52
7
1,744
1,744

6,682

-

3,564
55,113
21,735(3,718)18,01637,096

3,640
4,153
50,581
18,973(3,577)
15,39535,185

7. Reconciliation to Core Profit and Non-consolidated Ordinary Profit(Millions of yen)
For the year ended
March 31, 2016
Core Profit

A

Capital gains

For the year ended
March 31, 2017

43,01983,831

27,387

16,114

Income from monetary trusts, net

7,119

Income from trading securities, net

41

134

Gains on sale of securities

12,204

1,308

Gains on derivatives, net

4,768

Foreign exchange gains, net--

Other capital gains

14,6703,253

Capital losses

-

2,951

32,276

Losses on monetary trusts, net--

Losses on trading securities, net--

Losses on sale of securities--

Devaluation losses on securities--

Losses on derivatives, net-

Foreign exchange losses, net

30,0502,798

Other capital losses

-

153

2,226

Net capital gains (losses)

B

24,435(16,162)Core profit plus net capital gains (losses)

A+B

67,45567,669Other one-time gains-

1

Gains from reinsurance--

Reversal of contingency reserve--

Reversal of specific reserve for possible loans losses-

Others-Other one-time losses

6,662

Losses from reinsurance

7,490

6,458

Provision for specific reserve for possible loans losses
Provision for reserve for loan losses from borrowers in specificforeign countries
Others7,296

5

Write-off of loans

Ordinary Profit--

Provision for contingency reserve

Net other one-time gains (losses)

1

-

-

-

-

197

193

C

(6,662)(7,488)

A+B+C

60,79260,180Notes:
1. Core profit for the fiscal year ended March 31, 2017 (A) includes income gains of ¥4,493 million in income from monetary trusts andinterest income and dividends of ¥17 million in income from trading securities, net; other capital losses include provision of policy
reserves and others of ¥1,560 million for currency fluctuations of foreign currency dominated products and impairment losses of¥665 million from investment partnership; "Others" of other one-time losses included provision of additional policy reserve of ¥193
million.
2. Core profit for the fiscal year ended March 31, 2016 (A) includes income gains of ¥4,853 million in income from monetary trusts andinterest income and dividends of ¥57 million in income from trading securities, net; other capital gains include reversal of policy reserves
and others of ¥3,253 million for currency fluctuations of foreign currency dominated products; other capital losses include impairment
losses of ¥153 million from investment partnership; "Others" of other one-time losses included provision of additional policy reserve of¥197 million.
15

8. Loans by Borrower Category(Millions of yen, %)Category

As of March 31, 2016

As of March 31, 2017

Bankrupt and quasi-bankrupt loans--

Doubtful loans--

Sub-standard loans--

Sub-total--[% to total]

[-]

[-]

223,255

431,372

223,255

431,372

Normal loans
Total

Notes:
1. Bankrupt and quasi-bankrupt loans are loans to borrowers who are subject to bankruptcy, corporate reorganization,
rehabilitation or other similar proceedings and other borrowers in serious financial difficulties.
2. Doubtful loans are loans to borrowers (other than bankrupt and quasi-bankrupt borrowers) with deteriorated financial
condition and results of operations from which it is unlikely that the principal and interest on the loans will be recovered.
3. Sub-standard loans are loans on which principal and/or interests are past due for three months or more (excluding loans
described in notes 1. and 2. above) and loans on which terms and conditions have been amended in favor of the borrowers (e.g.
reduction of the original interest rate, defferral of interest payments, extension of principal repayments or debt waiver) in orderto support the borrowers' recovery from financial difficulties (excluding loans described in notes 1. and 2.
above and loans on which principal and/or interest are past due for three months or more).
4. Normal loans are all other loans.

9. Risk-monitored Loans
Not applicable1610. Solvency Margin Ratio(Millions of yen)

Category

As of March 31, 2016

As of March 31, 2017

1,169,875

1,176,229

Common stock, etc.

319,740

324,181Reserve for price fluctuations

44,26046,005

Contingency reserve

75,16682,4630

0

Net unrealized gains on other securities (before tax deductions) and net
deferred gains or losses on hedging instruments (before tax deductions)
x 90% (100% if losses)

188,217

159,672

Net unrealized gains on real estate multiplied by 85% (100% if losses)

20,77830,847--

Total solvency margin(A)

General reserve for possible loan losses

Amount excluded from deferred tax assets
Unallotted portion of reserve for poricyholders' dividends

302

442

Deferred tax assets

83,64882,980

Excess amount of policy reserves based on Zillmer method

470,777495,984

Subordinated debt--

The portion of the excess amount of policy reserves based on Zillmer
method and subordinated debt that is not included in the margin(31,308)(42,891)

Deductible items(1,707)(3,457)(B)

85,93091,576

Insurance risk

R1

23,57624,169

Third-sector insurance risk

R8

8,519

8,541

Assumed interest rate risk

R230,61331,356

Minimum guarantee risk

R715,902

18,140Asset management risk

R330,831

33,554

Business management risk

R4

2,188

2,315

2,722.8%

2,568.8%

Total risk

( R1  R8 ) 2  (R2  R3  R7 ) 2  R4

Solvency margin ratio
(A)/

B

100

Notes:
1. The figures are calculated based on provisions in Articles 86 and 87 of the Ordinance for Enforcement of the Insurance BusinessAct of Japan and the Ministry of Finance Public Notice No. 50 of 1996.
2. Minimum guarantee risk is calculated based on the standardized approach.

17

(Reference) Consolidated Solvency Margin Ratio
Although Sony Life is not required to prepare consolidated financial statements since it does not have consolidated subsidiaries, Sony Life
discloses consolidated solvency margin ratio consolidated with it's affiliated companies quarterly.
(Millions of yen)

Category

As of March 31, 2016

Total solvency margin(A)

As of March 31, 2017

1,151,900

1,162,007Common stock, etc.

318,011

322,640

Reserve for price fluctuations

44,26046,005

Contingency reserve

75,16682,463

Catastrophe reserve--

General reserve for possible loan losses

00

Net unrealized gains on other securities (before tax deductions) and net
deferred gains or losses on hedging instruments (before tax deductions) x
90% (100% if losses)

188,217

159,672

Net unrealized gains on real estate multiplied by 85% (100% if losses)

20,77830,847

Total amount of unrecognized net actuarial gain and unrecognized priorservice cost

(4,836)(3,565)

Amount excluded from deferred tax assets-

Unallocated portion of reserve for policyholders' dividends

-

302

442

Deferred tax assets

83,64882,980

Excess amount of policy reserves based on Zillmer method

470,777495,984

Subordinated debt--

The portion of the excess amount of policy reserves based on Zillmer
method and subordinated debt that is not included in the margin(33,036)(44,432)

Deductible items(11,389)(11,031)(B)

82,98388,302

Insurance risk

R1

23,57624,169Ordinary insurance risk

R5

-

-

Major Catastrophe risk

R6

-

-

Third-sector insurance risk

R8

Insurance risk of small-amount short-term insurance providers

R9

Total risk

R12+R52+R8+R9)2+(R2+R3+R7)2+R4+R6

8,519

8,541
-

-

Assumed interest rate risk

R230,61331,356

Minimum guarantee risk

R715,902

18,140Asset management risk

R327,69830,099Business management risk

R4

2,126

2,246

2,776.2%

2,631.8%

Solvency margin ratio
(A)/

B

100

Notes:
1. The figures are calculated based on provisions in Articles 86-2 and 88 of the Ordinance for Enforcement of the Insurance Business Act of Japanand Public Notice of Financial Services Agency No. 23 of 2011.
2. Minimum guarantee risk was calculated based on the standardized approach.

18

11. Status of Separate Account Assets for the Year Ended March 31, 2017
(1) Balance of Separate Account Assets
Assets relating to individual variable life insurance and individual variable annuities are jointly invested at Sony Life.
(Millions of yen)

Category

As of March 31, 2016

As of March 31, 2017

AmountAmountIndividual variable life insurance andindividual variable annuities

850,323

Group annuities

989,605-

Total separate account-

850,323

989,605

Note: Assets relating to individual variable life insurance and individual variable annuities are jointly invested at Sony Life.

(2) Status of Individual variable life insurance and individual variable annuities (Separate Account)(i) Policy amount in forcea) Individual variable life insurance
Category(Number: Thousand, Amount: Millions of yen)

As of March 31, 2016
NumberAmountAs of March 31, 2017
NumberAmountVariable life insurance (whole life type)823

8,690,797

845

8,680,668

Variable life insurance (limited term type)84

323,34997421,300

Variable life insurance (term type)1

40,5381

38,716909

9,054,686

944

9,140,684

Total
Note: Amounts include the rider portion of variable life insurance.

(Number: Thousand, Amount: Millions of yen)b) Individual variable annuities
Category
Individual variable annuities

As of March 31, 2016
NumberAs of March 31, 2017

Amount81

456,096

NumberAmount106

Note:
The amount of individual variable annuities is equal to the sum of (a) the funds to be held at the time annuity payments are to commence
for policies for which annuity payments have not yet commenced and (b) the amount of policy reserves for policies for which payments
have commenced.

19

600,331(ii) Portfolio of separate account assets in individual variable life insurance and individual variable annuities(Millions of yen, %)Category

As of March 31, 2016
AmountAs of March 31, 2017%

Amount%Cash and deposits, call loans

54,043

6.4

68,020

6.9

Securities

794,025

93.4

919,265

92.9

Japanese bonds (including JGBs)

158,24418.6

148,130

15.0

Japanese stocks

50,046

5.9

49,2945.0

Foreign securities

378,83344.6

476,218

48.1

Foreign bonds

62,5047.4

68,315

6.9

Foreign stocks, etc.

316,32837.2

407,90241.2

206,90224.3

245,621

24.8

Other securities
Loans

-

Other

2,254

Reserve for possible loan losses
Total

0.3

850,323

2,320

100.0

0.2

989,605

100.0

Note: Assets relating to individual variable life insurance and individual variable annuities are jointly invested at Sony Life.

(iii) Net investment gains (losses) of separate account assets in individual variable life insurance and individual
variable annuities(Millions of yen, %)Category

For the year ended March 31, 2016 For the year ended March 31, 2017

Interest income and dividends

15,22014,498

Gains on sale of securities

36,481

22,211

4

21

Valuation gains on securities

163,414215,402

Foreign exchange gains, net

12,643

Gains on redemption of securities

Gains on derivatives, net-

Other investment income
Losses on sale of securities
Losses on redemption of securities
Devaluation losses on securities

-

0

0

2,103

1,001

33

37

239,513

169,842

Foreign exchange losses, net-

Losses on derivatives, net

-

4,021
-

Other investment expenses

850

806

Net investment gains (losses)(14,735)

76,423

Note: Assets relating to individual variable life insurance and individual variable annuities are jointly invested at Sony Life.

12. Consolidated Summary
Not applicable20