Consolidated Financial Summary (Japanese GAAP)
for the Nine Months Ended December 31, 2018
February 13, 2019Sony Financial Holdings Inc.
(URL: https://www.sonyfh.co.jp/index_en.html)
Stock exchange listing: Tokyo Stock Exchange (code number: 8729)
Representative:
Shigeru Ishii, President and Representative Director
Inquiries:
Yasuo Hasegawa, General Manager-Investor Relations Dept.
(Telephone: +81-3-5290-6500)(Fractional amounts of less than ¥1 million are discarded.)Company name:

1. Consolidated financial results for the nine months ended December 31, 2018
(1) Operating results
Ordinary Revenues
Millions of yen% change

Millions of yen% change

Millions of yen% change

1,129,323(4.0)

74,02649.5

50,48918.8

1,175,843

12.9

49,517(1.6)

42,48626.0

For the nine months ended
December 31, 2018
For the nine months ended
December 31, 2017
Note: Comprehensive income:

Profit Attributable to Owners of
the Parent

Ordinary Profit

For the nine months ended December 31, 2018:¥

38,572 million:(20.8)%For the nine months ended December 31, 2017:¥

48,694 million:

167.0%Net Income per
Share(Fully Diluted)

Net Income per
Share
For the nine months ended
December 31, 2018
For the nine months ended
December 31, 2017

Yen

Yen

116.06116.04

97.67

97.66

(2) Financial condition
Total Assets
As of December 31, 2018
As of March 31, 2018
Note: Net assets attributable to shareholders:

Total Net Assets

Net Asset Ratio

Millions of yen

Millions of yen%

13,143,923
12,401,446

637,987
625,406

4.8
5.0

As of December 31, 2018:¥ 636,013 million

As of March 31, 2018:¥ 623,661 million

2. Dividends
Dividend per Share

Record Date
For the year ended
March 31, 2018
For the year ending
March 31, 2019
For the year ending
March 31, 2019
(forecast)

1st QuarterYen

2nd Quarter
Yen

3rd Quarter
Yen

－

0.00

－

－

0.00

－

Note: Changes in dividend forecast since the most recent public announcement: None

Year-End
Yen

Annual Total
Yen

60.00

60.00

62.50

62.50

3. Forecast of consolidated financial results for the year ending March 31, 2019
(Percentage figures represent changes from the results of the previous fiscal year.)
Profit Attributable to
Net Income per
Ordinary Revenues
Ordinary Profit
Owners of the Parent
Share
For the year ending
March 31, 2019

Millions of yen% change

Millions of yen% change

Millions of yen% changeYen

1,530,000

1.8

92,00037.6

60,00015.6

137.93

Note: Changes in forecast of financial results since the most recent public announcement: None

4. Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries accompanying changes in scope of
consolidation): None
(2) Application of special accounting methods for preparing quarterly consolidated financial statements: None
(3) Changes in accounting policies, accounting estimates and restatements of the consolidated financial statements(a) Changes in accounting policies resulting from the revision of the accounting standards and other regulations: None(b) Changes in accounting policies due to other reasons: None(c) Changes in accounting estimates: None(d) Restatements of the consolidated financial statements: None
(4) Number of shares outstanding (common stock)(a) Number of shares outstanding (including treasury shares)
As of December 31, 2018:
435,062,983 shares
As of March 31, 2018:
435,027,513 shares(b) Number of treasury shares
As of December 31, 2018:35,954 shares
As of March 31, 2018:35,775 shares(c) Weighted-average number of shares
For the nine months ended December 31, 2018:
435,013,160 shares
For the nine months ended December 31, 2017:434,975,717 shares
Status of interim audit proceduresThis document is exempt from interim audit procedures by certified public accountants or audit firm.

Content of Supplemental Materials
I. Consolidated Financial Statements
1. Consolidated Balance Sheets ……………………………………………………………………………

2

2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income) ……………………………………………………………………

4(Consolidated Statements of Comprehensive Income) …………………………………..………………

7

3. Note on Going Concern………………...……………………...……………………...…………………

8

4. Material Changes in Stockholders’ Equity………………...……………………...……………………..

8

5. Changes in Significant Subsidiaries during the Period…………………………………………………

8

6. Segment Information ……………………………………...……………………………..………………

9

II. Attachment
Consolidated Financial Results for the Nine Months Ended December 31, 2018 and Sony Life’s MCEV
as of December 31, 2018…………………………………………………………………………………

11* The conference call for explaining the Sony Financial Group's financial results will be held at 15:30 (Tokyo),February 13, 2019. Please note that our conference call will be held only in Japanese.
We will upload the presentation materials with speech text on February 13, 2019 after 15:00, the translation of
the conference call (audio) on February 14 and the Q&A summary (text) at a later date on the Earnings Releases
and Presentation Materials page of our website:
https://www.sonyfh.co.jp/en/financial_info/results/index.html* On February 13, 2019, Sony Financial Holdings Inc.’s (SFH’s) significant subsidiaries—Sony Life InsuranceCo., Ltd. (Sony Life), Sony Assurance Inc. (Sony Assurance) and Sony Bank Inc. (Sony Bank)—will announce
their financial results for the nine months ended December 31, 2018. SFH has prepared an English-language
summary of those Japanese announcements made by the above subsidiaries, solely for the convenience of nonJapanese readers.

- 1 -I. Consolidated Financial Statements
1. Consolidated Balance Sheets(Millions of yen)
As of March 31, 2018

As of December 31, 2018¥¥

AssetsCash and due from banks

327,633

383,254

Call loans and bills bought

65,50086,700

Monetary claims purchased

5,378

5,751

291,582

288,642

Securities

9,581,206

10,140,651

Loans

Money held in trust

1,785,877

1,869,284

Tangible fixed assets

106,051

104,691

Intangible fixed assets

35,68438,732

Due from reinsurers

934

2,052

Foreign exchanges

9,346

11,139168,736

183,398

Net defined benefit asset

3,426

3,660

Deferred tax assets

21,242

27,230

Other assets

Reserve for possible loan losses(1,152)

Total Assets

¥

- 2 -

12,401,446(1,266)¥13,143,923

(Millions of yen)
As of March 31, 2018

As of December 31, 2018¥¥

Liabilities
Policy reserves and others
Reserve for outstanding claims

8,763,349

9,195,757

74,712

76,523

8,683,153

9,114,084

5,484

5,149

Due to agencies

1,873

1,460

Due to reinsurers

5,563

4,946

Policy reserves
Reserve for policyholders’ dividends

Deposits

2,159,246

2,280,653

Call money and bills sold

96,000122,378

Borrowed money

173,944

183,901

Foreign exchanges

228

330

Bonds payable

20,00020,000

Other liabilities

470,501

610,486

Reserve for employees’ bonuses

3,906

2,310

Net defined benefit liability

33,17933,828Reserve under the special laws

48,13549,750Reserve for price fluctuations

48,13549,750

0

21

109

109

11,776,039

12,505,936

Common stock

19,927

19,963

Capital surplus

191,157

191,193

Retained earnings

283,911308,301

(55)

(55)

494,941

519,402

133,991

121,540

Deferred tax liabilities
Deferred tax liabilities on land revaluation
Total Liabilities
Net Assets

Treasury stock
Total shareholders’ equity
Net unrealized gains (losses) on available-for-sale securities, net oftaxes
Net deferred gains (losses) on hedging instruments, net of taxes

(902)

(964)

Land revaluation, net of taxes(2,439)(2,439)Remeasurements of defined benefit plans, net of taxes(1,929)(1,526)

Total accumulated other comprehensive income

128,719

116,611

Subscription rights to shares

97

133

Non-controlling interests

1,648

1,840

625,406

637,987

Total Net Assets
Total Liabilities and Net Assets

¥

- 3 -

12,401,446¥

13,143,923

2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)

Ordinary Revenues
Ordinary Revenues from the Life Insurance Business

For the nine months ended
December 31, 2017

For the nine months ended
December 31, 2018¥¥

1,175,843

1,129,323

1,059,433

1,004,462

761,351

814,153

759,601

812,196

253,830

145,506

117,415

124,415

3,364

3,364

(Gains on trading securities, net)

57－

(Gains on sale of securities)

0

4,581

(Foreign exchange gains, net)

2,804

13,145(Gains on separate accounts, net)

130,185－

44,25144,80382,421

86,296

81,062

84,74881,016

84,699

46

48

1,330

1,503

Income from insurance premiums
Insurance premiums
Investment income(Interest income and dividends)(Income from money held in trust, net)

Other ordinary income
Ordinary Revenues from the Non-life Insurance Business
Underwriting income(Net premiums written)(Interest and dividends on deposits of premiums)
Investment income(Interest income and dividends)

1,001

1,025

(Gains on sale of securities)

375

526

(Transfer to interest and dividends on deposits of premiums)

(46)

(48)

28

44

29,47933,58021,17923,598(Interest income on loans)

12,783

13,036(Interest income and dividends on securities)

8,340

10,509Fees and commissions

4,745

6,406

Other operating income

2,855

3,171

Other ordinary income

698

404

4,509

4,984

Other ordinary income
Ordinary Revenues from the Banking Business
Interest income

Other
Other ordinary income

4,509

4,984
(Continued)- 4 -(Millions of yen)

Ordinary Expenses
Ordinary Expenses from the Life Insurance Business

For the nine months ended
December 31, 2017

For the nine months ended
December 31, 2018¥¥

1,126,326

1,055,297

1,021,460

946,398

328,628

344,334(Insurance claims)

67,99569,873(Annuity payments)

8,817

9,693

(Insurance benefits)

96,742

105,853(Surrender payments)

146,090

148,589

2,469

2,811

524,320423,685

Insurance claims and other payments(Other payments)
Provision for policy reserves and others
Provision for reserve for outstanding claims－

431

524,319423,25300Investment expenses

28,47932,425(Interest expenses)

61

1,050

(Losses on trading securities, net)－

286

(Losses on sale of securities)

034(Losses on valuation of securities)

－

4,026

Provision for policy reserves
Interest portion of reserve for policyholders’ dividends(Losses on derivatives, net)

23,990784－

22,800Operating expenses

102,646

107,039

Other ordinary expenses

37,38638,913(Losses on separates accounts, net)

Ordinary Expenses from the Non-life Insurance Business

76,83278,332

Underwriting expenses

56,40258,049(Net losses paid)

38,53442,031(Loss adjustment expenses)

5,574

6,025

(Net commission and brokerage fees)

1,002

934

(Provision for reserve for outstanding losses and claims)

2,524

1,380

(Provision for underwriting reserves)

8,767

7,677

1

1

20,40920,27918

3Investment expenses
Operating, general and administrative expenses
Other ordinary expenses(Continued)- 5 -(Millions of yen)

Ordinary Expenses from the Banking Business

For the nine months ended
December 31, 2017

For the nine months ended
December 31, 2018¥¥

Interest expenses(Interest expenses on deposits)(Interest on payables under repurchase agreements)
Fees and commissions
Other operating expenses
General and administrative expenses
Other ordinary expenses
Other
Other ordinary expenses

22,67424,884

5,789

6,300

3,926

4,865

－

258

3,414

4,338

83

106

13,317

13,849

70

288

5,359

5,681

5,359

5,681

Ordinary Profit

49,51774,026Extraordinary Gains

13,2580

13,258

0

1,597

1,694

151

69

0

10

Provision for reserve under the special laws

1,408

1,614

Provision for reserve for price fluctuations

1,408

1,614

36

－

122

(63)

Income Before Income Taxes

61,056

72,395

Income Taxes - Current

21,41323,153

Income Taxes - Deferred(2,881)(1,437)

Total Income Taxes

18,532

21,716

Profit42,52450,679Gains on disposal of fixed assets
Extraordinary Losses
Losses on disposal of fixed assets
Impairment losses

OthersProvision(Reversal) for Reserve for Policyholders’ Dividends

Profit Attributable to Non-controlling Interests

38

Profit Attributable to Owners of the Parent

¥

- 6 -

42,486

190¥

50,489(Consolidated Statements of Comprehensive Income)(Millions of yen)

Profit

For the nine months ended
December 31, 2017

For the nine months ended
December 31, 2018¥¥

42,52450,679Other comprehensive income
Net unrealized gains (losses) on available-for-sale securities, netof taxes

5,513(12,451)

Net deferred gains (losses) on hedging instruments, net of taxes

166

(61)

Remeasurements of defined benefit plans, net of taxes

490

404

Total other comprehensive income

6,170

Comprehensive income¥

48,694(12,107)¥

38,572(Details)
Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests- 7 -48,65438,38039

191

3. Note on Going Concern
Not applicable.

4. Material Changes in Stockholders’ Equity
Not applicable.

5. Changes in Significant Subsidiaries during the Period
Not applicable.
Although specified subsidiaries have not changed, Sony Financial Ventures Inc.,a subsidiary that invests in venture companies,
was established and entered the scope of consolidation in the first half of the fiscal year ending March 31, 2019. The company’s
results are included in the “other” category in the consolidated statements of income.

- 8 -6. Segment Information(1) Segment information by reportable segment
For the nine months ended December 31, 2017
Millions of yen
Non-life
insurancebusiness

Life insurance
business
Ordinary revenues
External customers
Intersegment
Total
Segment profit¥ 1,059,433
2,750
1,062,183¥
40,230¥82,421082,422
5,039¥

Bankingbusiness

¥

¥

Total

29,479165
29,645
5,078

¥

¥

Other

1,171,334
2,917
1,174,251
50,348

¥

¥

4,509
－
4,509
(851)

Total

¥ 1,175,843
2,917
1,178,760¥
49,497(Note) “Other” consists of the nursing care business, which is not a reportable segment.
For the nine months ended December 31, 2018
Millions of yen
Non-life
insurancebusiness

Life insurance
business
Ordinary revenues
External customers
Intersegment
Total
Segment profit¥ 1,004,462
2,152
1,006,615¥
60,160¥¥86,296
086,296
7,394

Bankingbusiness

¥

¥

Total

33,580186
33,767
7,043

¥

¥

Other

1,124,339
2,340
1,126,679
74,597

¥

¥

4,984
－
4,984
(697)

Total

¥ 1,129,323
2,340
1,131,663¥
73,899(Note) “Other” consists of the nursing care business and venture capital operations, which is not a reportable segment.
(2) Reconciliations of the totals of reportable segments’ profit to quarterly consolidated statement of income
Millions of yen

Totals of reportable segments

For the nine months ended
December 31, 2017

For the nine months ended
December 31, 2018

¥

¥

Other
Adjustments for intersegment transactions

(133)
153

Amount not allocated to reportable segments
Ordinary profit in quarterly consolidated
statement of income

50,348(851)¥

49,517(3) Information on impairment loss on fixed assets and goodwill by reportable segment
Not applicable.

- 9 -74,597
(697)
－
126

¥

74,026

SFH’s consolidated results* are prepared in accordance with Japanese GAAP. As such, these figures differ in significant respects
from the financial information reported by Sony Corporation, SFH’s parent company, which prepares its financial statements inaccordance with U.S. GAAP.
* SFH’s scope of consolidation includes following companies:
Sony Financial Holdings Inc.
Sony Life Insurance Co. Ltd.
Sony Assurance Inc.
Sony Bank Inc.
Sony Payment Services Inc.
SmartLink Network Hong Kong Limited.
Sony Lifecare Inc.
Lifecare Design Inc.
Proud Life Inc.**
Sony Financial Ventures Inc.**
Affiliated companies accounted for under the equity method:
AEGON Sony Life Insurance Co., Ltd.
SA Reinsurance Ltd.
** Proud Life Inc. is included in the scope of consolidation from the second quarter ended September 30, 2017.
Sony Financial Ventures Inc. is included in the scope of consolidation from the second quarter ended September 30, 2018.

Statements made in this press release concerning the current plans, expectations, strategies and beliefs of the Sony Financial Group.
Any statements contained herein that are not historical facts are forward-looking statements or pro forma information. Forwardlooking statements may include-but are not limited to-words such as “believe,” “anticipate,” “plan,” “strategy,” “expect,”“assume,” “forecast,” “predict,” “propose,” “intend” and “possibility” that describe future operating activities, businessperformance, events or conditions. Forward-looking statements, whether spoken or written, may also be included in other materials
released to the public. These forward-looking statements and pro forma information are based on assumptions, decisions andjudgments made by the management of Sony Financial Group companies, and are based on information that is currently available tothem. As such, they are subject to various risks and uncertainties, and actual business results may vary substantially from theforecasts expressed or implied in forward-looking statements. Consequently, investors are cautioned not to place undue reliance on
forward-looking statements. Sony Financial Group companies are under no obligation to revise forward-looking statements or pro
forma information in light of new information, future events or other findings. The information contained in this press release does notconstitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe to any
securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever inJapan or abroad.

- 10 -

II. Attachment
Content of Presentation Material
Consolidated Financial Results for the Nine Months Ended December 31, 2018 andSony Life’s MCEV as of December 31, 2018
・ Consolidated Operating Results for the Nine Months Ended December 31, 2018 ………………

3

・ Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2019 ……………

24

・ Sony Life’s MCEV and ESR as of December 31, 2018 ……………………………………………………

26

・ Appendix ……………………………………………………………………………………………………

29- 11 -

Attachment

Presentation Material

Consolidated Financial Results
for the Nine Months Ended December 31, 2018
andSony Lifeʼs MCEV as of December 31, 2018

Sony Financial Holdings Inc.
February 13, 2019Sony Financial Holdings Inc.

All Rights Reserved

Content
 Consolidated Operating Results for the Nine Months Ended December 31, 2018

P.3

 Forecast of Consolidated Financial Results for the Fiscal Year Ending
March 31, 2019 (FY18)

P.24

 Sony Lifeʼs MCEV and ESR as of December 31, 2018

P.26

 Appendix

P.29

Disclaimers:
This presentation material contains statements concerning the current plans, expectations, strategies and beliefs of the SonyFinancial Group. Any statements contained herein that are not historical facts are forward-looking statements or pro forma
information. Forward-looking statements may include̶but are not limited to̶words such as “believe,” “anticipate,” “plan,”“strategy,” “expect,” “assume,” “forecast,” “predict,” “propose,” “intend” and “possibility” that describe future operating activities,business performance, events or conditions. Forward-looking statements, whether spoken or written, may also be included in othermaterials released to the public. These forward-looking statements and pro forma information are based on assumptions, decisions
and judgments made by the management of Sony Financial Group companies, and are based on information that is currently
available to them. As such, they are subject to various risks and uncertainties, and actual business results may vary substantiallyfrom the forecasts expressed or implied in forward-looking statements. Consequently, investors are cautioned not to place undue
reliance on forward-looking statements. Sony Financial Group companies are under no obligation to revise forward-looking
statements or pro forma information in light of new information, future events or other findings. The information contained in thispresentation does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or
subscribe to any securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract orcommitment whatsoever in Japan or abroad.
*Unless otherwise indicated, in these materials figures less than the indicated unit have been truncated, while ratios and percentage changes have been rounded.
Also, a “–” is used where percentage changes exceed 1,000% and in cases where one or both comparisons are negative.
* “Lifeplanner” is a registered trademark of Sony Life.

Sony Financial Holdings Inc.

All Rights Reserved2

Attachment

Consolidated Operating Results
for the Nine Months Ended December 31, 2018
<FY18.3Q (9M)>Sony Financial Holdings Inc.

All Rights Reserved

3

Highlights of Consolidated Financial Results
FY18.3Q (9M) consolidated financial results: Revenues down 4.0%, profits up 49.5% YoY.

・Ordinary revenues: Down, mainly due to a worsening of gains from investment in separate
accounts in the life insurance business. Revenues increased in the non-life
insurance and the banking businesses.
・Ordinary profit: Up, due to increases in each area of business: life insurance, non-life
insurance and banking business.
 Sales performance: All three businesses continued to expand steadily.

At Sony Life, the new policy amount steadily increased, owing to thefavorable acquisition of family income insurance policies.

 Full-year forecasts: We have revised our forecasts from the figures announced on April 27,

2018, mainly because of deviations in the life insurance business from
our initial expectations for FY18.3Q (9M).
・Ordinary revenues: Revised to ¥1,530.0 billion (down 3.0% form previous forecast)・Ordinary profit: Revised to ¥92.0 billion (up 10.8% from previous forecast)・Profit attributable to owners of the parent: Revised to ¥60.0 billion (up 9.1% from previous
forecast) Indicators based on economic value:

・On December 31, 2018, MCEV was ¥1,664.6 billion. The QoQ decrease was attributable toa decline in the yen interest rate.
・New business value in FY18.3Q (3M) was ¥23.7 billion. The QoQ increase was due to thesteady acquisition of new policies.
Sony Financial Holdings Inc.

All Rights Reserved

4Attachment

Highlights of Consolidated Operating Performance＜Consolidated＞
Ordinary revenues
Ordinary profit

1,175.8

Life insurance
business
Non-life
insurancebusiness

1,129.3(4.0%)

Bankingbusiness

74.0+49.5%

Intersegment
adjustments*(JPY bn)

FY17.3Q(9M)

FY18.3Q(9M)

Ordinary revenues

1,062.1

1,006.6(55.5)(5.2%)

Ordinary profit

40.2

60.1

+19.9

+49.5%

Ordinary revenues

82.4

86.2

+3.8

+4.7%

Ordinary profit

5.0

7.3

+2.3

+46.7%

Ordinary revenues

29.6

33.7

+4.1

+13.9%

Ordinary profit

5.0

7.0

+1.9

+38.7%

Ordinary revenues

1.5

2.6

+1.0

+66.1%

(0.8)

(0.5)

+0.2

-

1,175.8

1,129.3(46.5)(4.0%)

Ordinary profit

49.5

74.0

+24.5

+49.5%

Profit attributableto owners of theparent

42.4

50.4

+8.0

+18.8%

Ordinary profit

49.5

Ordinary revenues
Consolidated(JPY bn)

FY17.3Q(9M)

Change*“Intersegment adjustments” is from SFH, the nursing care business, and the venture capital business.
Proud Life Inc. and Sony Financial Ventures Inc. are included in the scope of consolidation from
FY17.2Q and FY18.2Q, respectively.
(Note) Comprehensive income : FY17.3Q(9M): ¥48.6 billion, FY18.3Q(9M): ¥38.5 billion

FY18.3Q(9M)(JPY bn)
Consolidated

Net assets
Total assets

Sony Financial Holdings Inc.

Mar. 18

Dec. 18

Change from Mar. 18

625.4

637.9

+12.5

+2.0%

12,401.4

13,143.9+742.4+6.0%

5

All Rights Reserved

Highlights of Operating Performance:
Sony Life (Non-consolidated)(JPY bn)

Ordinary revenues
Ordinary profit

1,062.0(5.2%)

FY17.3Q(9M)

FY18.3Q(9M)1,062.0

1,006.5(55.5)

Income from insurance premiums

762.8

815.8

＋52.9

+6.9%

Investment income

254.3

145.4

(108.8)(42.8％)

117.7

124.4

+6.6

+5.6%

0.0

4.5

+4.5

－

Ordinary revenues

1,006.5

Interest income and dividends
Gains on sale of securities
Foreign exchange gains, net

60.5＋44.4%

41.9

Gains on separate accounts, net
Ordinary expenses

2.8

13.1

+10.3

+368.8%－(130.1)(100.0%)(7.3%)

1,020.1

945.9(74.1)

Insurance claims and other payments

328.6

344.3

+15.7

+4.8%

Provision for policy reserves and others

524.3

423.6

(100.6)(19.2%)

Investment expenses

28.6

32.4

+3.7

+13.0%

－

4.0

+4.0

－

23.9

0.7

(23.2)(96.7%)

－

22.7

+22.7

－

102.9

107.1

+4.2

+4.1%

Ordinary profit

41.9

60.5

+18.6

+44.4%

Gains on disposal of fixed assets

13.2

－

(13.2)(100.0%)Net income

37.5

41.5

+4.0

+10.7%

Losses on derivatives, net

FY17.3Q(9M)

FY18.3Q(9M) Ordinary revenues decreased but ordinary profit increased
year on year.
 Income from insurance premiums increased due mainly to asteady rise in the policy amount in force.
 Investment income decreased due mainly to a deterioration
in investment performance in the separate account.
 Ordinary profit increased year on year due to an
improvement in net gains (losses) on derivative transactions
to hedge market risks for available-for-sale securities and arecording of gains on sale of securities, both in the generalaccount, and increase in profit on higher policies in force,and a decline in provision of policy reserves for productswith higher surrenders, which more than offset the effect ofan impairment loss relating to available-for sale securities in
the general account.

(5.2%)

130.1

Devaluation losses on securities(JPY bn)

ChangeLosses on separate accounts, net
Operating expenses(JPY bn)

Mar. 18

Dec. 18

Change from Mar. 18

Securities

8,765.9

9,274.4＋508.4+5.8%

Policy reserves

8,566.0

8,989.3＋423.2

+4.9%

492.7

500.0

+7.2

+1.5％

124.9

116.8

(8.1)

(6.5％)

9,567.6

10,113.2＋545.5+5.7%

1,128.8

1,167.2

+38.4

＋3.4%

Net assets
Net unrealized gains on other securities
Total assets
Separate account assets

Sony Financial Holdings Inc.

All Rights Reserved

6

Attachment

Overview of Operating Performance:
Sony Life (Non-consolidated)
FY17.3Q(9M)

FY18.3Q(9M)

ChangeNew policy amount

3,445.4

4,595.3＋33.4%

Lapse and surrender amount

1,330.3

2,222.2＋67.0％

Lapse and surrender rate

2.94%

4.71%

＋1.77pt

Annualized premiums from new policies

51.9

56.9

＋9.8%

Of which, third-sector products

9.3

11.1

+19.3%

FY17.3Q(9M)

FY18.3Q(9M)

Gains from investment, net (General account)

95.4

135.8

+42.3％

Core profit

70.6

63.7

(9.8％)

Positive spread

13.9

14.0

+0.7%

Mar. 18

Dec. 18

47,253.4

48,894.0

+3.5％

848.8

871.1

+2.6％

191.8

196.0

+2.2％

2,624.3%

2,684.7%+60.4pt(JPY bn)(JPY bn)(JPY bn)
Policy amount in force
Annualized premiums from insurance in force
Of which, third-sector products
Non-consolidated solvency margin ratio

ChangeChangeFrom
Mar. 18＜Reasons for changes＞◆ Increased due to favorable salesof family income insurance.
◆Increased due to cancellations ofexisting policies from certain
customers taking out new policies
such as family income insurance.
This shift resulted from premium
revisions, owing to the revision of
the standard mortality tables.
◆ Increased due to favorable salesof individual annuities and U.S.
dollar-denominated insurance.
◆ Decreased due to an increase in
the provision of policy reserves forminimum guarantees for variable
life insurance in line with worsened
financial market conditions, whichmore than offset an increase inprofit on higher policies in force
and a decline in provision of policy
reserves for products with higher
surrenders.

Note: Figures for new policy amount, lapse and surrender amount, lapse and surrender rate, annualized premiums
from new policies, policy amount in force, and annualized premiums from insurance in force are calculated as
the total of individual life insurance and individual annuities. The lapse and surrender rate shows the ratio
derived by dividing the amount of lapses and surrenders, not adjusted for policy amount decreases, increases,
and reinstatements, by the policy amount in force at the beginning of the fiscal year.

Sony Financial Holdings Inc.

7

All Rights Reserved

Operating Performance :Sony Life (Non-consolidated) (1)
Number and Amount of New Policies

Annualized Premiums from New Policies(Individual Life Insurance + Individual Annuities)
New policy amount(Individual Life Insurance + Individual Annuities)

Number of new policies

Annualized premiums from new policies

Of which, third-sector（Thousands（JPY tn）＋15.8%

6388

of policies)（JPY bn）

445
60

384
4.59

5

400

54.1

51.9

56.9

＋9.8%

50

＋33.4%

4

3.49

300

3.44

3

200

2

40

30

20
＋19.3%

100

1

10
0

0
FY16.3Q(9M)

FY17.3Q(9M)

FY18.3Q(9M)Sony Financial Holdings Inc.

11.2

9.3

11.1

0
FY16.3Q(9M)All Rights Reserved

FY17.3Q(9M)

FY18.3Q(9M)8Attachment

Operating Performance :Sony Life (Non-consolidated) (2)
Number and Amount of Policies in Force

Annualized Premiums from Insurance in Force(Individual Life Insurance + Individual Annuities)
Policy amount in force

60（Millionsof policies)

7.49

7.56

46.7

47.2

＋4.6%

Annualized premiums from insurance in force

Number of policies in force＋3.6%（JPY tn）(Individual Life Insurance + Individual Annuities)

7.76

＋2.6%

（JPY bn）

8

＋3.4%

800

6

＋3.5%

＋2.6%

600

30

4

400

15

2

200

0

0
Mar. 17

871.1

848.8

48.8

45

Dec. 17842.4

Of which, third-sector

＋2.8%

190.7

191.8

Dec. 17Mar. 18

＋2.2%

196.0

0

Dec. 18

Sony Financial Holdings Inc.

All Rights Reserved

Dec. 18

9

Operating Performance :Sony Life (Non-consolidated) (3)Lapse and Surrender Rate*(Individual Life Insurance + Individual Annuities)
Lapse and surrender rate (Annual)

Lapse and surrender rate (9M)

（%）

8

6

4.97

4.71

4.27
4

2

3.18

＋1.77pt

2.94

0FY2016FY2017FY2018*The lapse and surrender rate shows the ratio derived by dividing the amount oflapses and surrenders, not adjusted for policy amount decreases, increases, andreinstatements, by the policy amount in force at the beginning of the fiscal year.

Sony Financial Holdings Inc.

All Rights Reserved

10Attachment

Operating Performance :Sony Life (Non-consolidated) (4)Interest Income and Dividends

Income from Insurance Premiums(JPY bn)(JPY bn)

815.8
800

120

762.8

705.4

124.4

117.7

110.0

＋5.6%

＋6.9%

600

80

400
40
200

0

0
FY16.3Q(9M)

FY17.3Q(9M)

FY16.3Q(9M)

FY18.3Q(9M)Sony Financial Holdings Inc.

FY17.3Q(9M)

FY18.3Q(9M)11All Rights Reserved

Operating Performance :Sony Life (Non-consolidated) (5)Ordinary Profit

Core Profit(JPY bn)

Core profit

80

65.8
60

(JPY bn)

Adjusted core profit

70.6

71.8

(9.8%)

59.2
61.6+16.6%

60.5

60
50

63.7

45.1

41.9 ＋44.4%

40

40

30
20

20

10
0

0
FY16.3Q(9M)

FY17.3Q(9M)

FY16.3Q(9M)

FY18.3Q(9M)(Reference) Impact on core profit

FY17.3Q(9M)

FY18.3(9M)(Reference) Main differences from core profit(JPY bn) FY16.3Q(9M) FY17.3Q(9M) FY18.3Q(9M)(JPY bn) FY16.3Q(9M) FY17.3Q(9M) FY18.3Q(9M)

Positive spread

11.1

13.9

14.0

Provision of policy reserves forminimum guarantees for variable
life insurance (*)

Capital gains (losses) excluding gains
or losses on hedges (*)

0.0

(9.4)

1.6

(4.5)

(4.8)

(22.1)

Gains (losses) on hedges of variable
life insurance(14.2)(13.5)

1.6

Adjusted core profit (**)

59.2

61.6

71.8

Provision of contingency reserve (*)

(6.2)

(5.6)

(6.3)

*“Provision of policy reserves for minimum guarantees for variable life insurance” and “Provision of contingency reserve” are described as negative amount.
Capital gains (losses) exclude gains or losses on hedges of variable life insurance.
**Adjusted core profit = (Core profit) – (Positive spread) – (Provision of policy reserves for minimum guarantees for variable life insurance)

Sony Financial Holdings Inc.

All Rights Reserved

12

Attachment

Operating Performance :Sony Life (Non-consolidated) (6)
Number of Lifeplanner Sales Employees＋138(Number)

5,000

5,142

4,933

4,942

4,974

4,968

Mar. 17

Jun. 17

Sep. 17

Dec. 17

5,147

5,135

5,106
5,106
(41)

4,500

4,000

3,500

0
3,000

Sony Financial Holdings Inc.

Mar. 18

Jun. 18

Sep. 18

Dec. 18
13

All Rights Reserved

Highlights of Operating Performance:
Sony Assurance
Ordinary revenues

Ordinary profit(JPY bn)

82.4

＋4.7%

＋46.7%(JPY bn)

86.2

5.0

FY17.3Q(9M)

FY18.3Q(9M)◆Both ordinary revenues and ordinary profit
increased year on year.
◆Ordinary revenues expanded owing to anincrease in net premium written for mainstay
automobile insurance.
◆Ordinary profit increased year on year due
mainly to a decline in the net expense ratio
and the effect of higher revenues.

FY18.3Q(9M)

Change

82.4

86.2

+3.8

+4.7%

Underwriting income

81.0

84.7

+3.6

+4.5%

Investment income

1.3

1.5

+0.1

+13.0%

Ordinary expenses

77.3

78.9

+1.5

+2.0%

Underwriting
expenses

56.7

58.4

+1.6

+2.9%

Operating generaland administrative
expenses

20.6

20.4

(0.1)

(0.7%)

Ordinary profit

5.0

7.3

＋2.3

＋46.7%Net income

3.6

5.2

＋1.6

+44.3%

Ordinary revenues

7.3

FY17.3Q(9M)(JPY bn)

Mar. 18

Dec. 18

Change from
Mar. 18

Underwriting reserves

117.0

124.7

+7.6

+6.6%

Net assets

33.1

35.3

+2.1

+6.5%

Total assets

204.3

210.4

+6.1

+3.0%

Sony Financial Holdings Inc.

All Rights Reserved

14

Attachment

Overview of Operating Performance:
Sony Assurance<Reasons for changes>

FY17.3Q(9M)

FY18.3Q(9M)Direct premiums written

80.0

83.9

＋4.8%

Net premiums written

81.0

84.6

+4.5%

Net losses paid

38.5

42.0

＋9.1%

Underwriting profit

3.7

5.9

＋58.3%Net loss ratio

54.4%

56.7%

＋2.3ptNet expense ratio

27.1%

25.7%

(1.4pt)Combined ratio

81.5%

82.4%

+0.9pt(JPY bn)

Change◆ Steadily increased in its
mainstay automobile
insurance.
◆ Rose due to higher insurance
payments driven by natural
disasters.
◆ Declined due mainly to adecrease in system-related
expenses.

Notes:Net loss ratio = (Net losses paid + Loss adjustment expenses ) / Net premiums written
Net expense ratio = Expenses related to underwriting / Net premiums written

FY17.3Q(9M)

FY18.3Q(9M)

ChangeE. I. loss ratio

61.8%

61.5%

(0.3pt)E. I. loss ratio +Net expense ratio

88.9%

87.2%

(1.7pt)◆ Declines due mainly to adecrease in provision forreserve for outstanding losses.

Note: E.I. loss ratio = (Net losses paid + Provision for reserve for outstanding losses + Loss adjustment expenses) / Earned premiums[Earthquake insurance and compulsory automobile liability insurance are excluded from the above calculation.]Mar. 18
Non-consolidated
solvency margin ratio

Dec. 18

782.1%

Change from
Mar. 18

872.5%+90.4pt

Sony Financial Holdings Inc.

15

All Rights ReservedSony Assuranceʼs Underwriting Performanceby Type of Policy
Net Premiums Written

Direct Premiums Written
FY17.3Q(9M)

FY18.3Q
(9M)

148

244

+64.5%－－－

Personal accident

6,515

6,576

+0.9%

Voluntary
automobile

73,37977,103

+5.1%

－

－

－

80,04383,924+4.8%

FY17.3Q(9M)

FY18.3Q(9M)

Change

Fire

5

11

+102.0%Marine2

10+273.5%

Personal accident

2,029

2,218

+9.3%

Voluntary
automobile

35,501

38,760

+9.2%

995

1,030

+3.5%

38,53442,031+9.1%(JPY ｍn)

Fire
MarineCompulsory
automobile liability
Total

Net losses paid
(JPY ｍn)

Compulsory
automobile liability
Total

FY17.3Q(9M)

FY18.3Q
(9M)

Fire

11

68

＋502.5%

Marine0(0)－Personal accident

6,671

6,653

(0.3%)

Voluntary
automobile

73,20076,865＋5.0%Compulsory
automobile liability

1,132

1,110

(1.9%)

Total

81,016

84,699+4.5%(JPY ｍn)

ChangeChange*Medical insurance is included in personal accident.

Sony Financial Holdings Inc.

All Rights Reserved

16

Attachment

Operating Performance:
Sony Assurance (1)Ordinary Profit andAdjusted Ordinary Profit

Net Premiums Written andNumber of Policies in Force
Voluntary automobile insurance

Personal accident insurance

Others(JPY bn)

80

84.6

81.0
74.2

Adjusted ordinary profit

Ordinary profit(JPY bn)

10.0

10

＋4.5%

＋32.6%

8

60

7.6

7.3

7.3

6

4

40

＋46.7%

4.9

5.0

FY16.3Q(9M)

FY17.3Q(9M)220

0
FY18.3Q(9M)*Adjusted ordinary profit = Ordinary profit + Provision for catastrophe reserve

0
FY16.3Q(9M)

FY17.3Q(9M)

FY18.3Q(9M)(Reference) Provision for catastrophe reserve(JPY bn)

FY16.3Q(9M)

2.3

Provision for catastrophe reserve

Note: Most of personal accident insurance is medical insurance.

FY17.3Q(9M)

FY18.3Q
(9M)

2.5

2.6

*Provision for catastrophe reserve is described as positive amount.

Sony Financial Holdings Inc.

17

All Rights Reserved

Operating Performance:
Sony Assurance (2)Earned/Incurred Loss Ratio +Net Expense Ratio
Earned/Incurred loss ratio(Reference) Combined Ratio＜参考＞(Net Loss Ratio+ Net Expense Ratio)
Net loss ratio

Net expense ratio

（%）

（%）
100

90.6

100

89.2

89.2

87.2

88.9
(1.7pt)80

60

Net expense ratio

62.3

60.7

62.9

61.8
(0.3pt)

85.8

84.4

83.5

80

61.5

60

82.4

81.5
+0.9pt

57.5

55.9

57.2

54.4

56.7
＋2.3pt40

40(1.4pt)

20

20

28.3

28.5

26.3

27.1

25.7

FY16

FY17

FY16.3Q

FY17.3Q

FY18.3Q(1.4pt)

28.3

28.5

26.3

27.1

25.7

FY16

FY17

FY16.3Q

FY17.3Q

FY18.3Q

00Notes:(9M)
Earned/Incurred loss ratio = (Net losses paid + Provision for reserve foroutstanding losses + Loss adjustment expenses) / Earned premiums[Earthquake insurance and compulsory automobile liability insurance are excluded
from the above calculation.]Sony Financial Holdings Inc.

(9M)
Notes:Net loss ratio = (Net losses paid + Loss adjustment expenses) /Net premiums written
Net expense ratio = Expenses related to underwriting / Net premiums written

All Rights Reserved

18

Attachment

Highlights of Operating Performance:
Sony Bank (Consolidated/Non-consolidated)<Consolidated>＜Consolidated＞
Ordinary revenues
Ordinary profit+13.9%

29.6

FY17.3Q(9M)

FY18.3Q(9M)

Ordinary revenues

29.6

33.7

+4.1

+13.9%

Ordinary profit

5.1

7.0

＋1.9

＋37.9%

Profit attributable to ownersof the parent

3.3

4.6

＋1.3

＋40.3%

FY17.3Q(9M)

FY18.3Q(9M)

Ordinary revenues

26.9

30.5

+3.6

+13.4%

Gross operating profit

15.6

17.9

+2.3

+14.9%Net interest income

15.3

17.2

+1.8

+12.4%Net fees and commissions

(2.4)

(2.3)

＋0.1

－

Net other operating income

2.7

3.0

+0.2

+10.8%

General and administrative
expenses

11.6

11.7

+0.0

+0.8%

Net operating profit

4.0

6.2

+2.1

+53.8％

Ordinary profit

4.6

6.3

+1.7

+37.6%Net income

3.1

4.4

+1.2

+40.3%

Mar. 18

Dec. 18

85.7

84.1

(1.5)

(1.8%)

6.0

2.3

(3.6)

(60.8%)

2,635.0

2,815.8＋180.8+6.9%(JPY bn)+37.9%

33.7
7.0<Non-consolidated>(JPY bn)

5.1

FY17.3Q(9M)

FY18.3Q(9M)<Consolidated>◆Both ordinary revenues and ordinary profit rose year
on year due to increases in interest income on
investment securities and on loans in line with agrowing balance of mortgage loans.
＜Non-consolidated＞◆ Both gross operating profit and net operating
profit increased.
Net interest income increased due to increased ininterest income on investment securities and loans.

(JPY bn)
Net assets
Net unrealized gains onother securities, net of taxes
Total assets

Sony Financial Holdings Inc.

ChangeChangeChange from
Mar. 1819

All Rights Reserved

Overview of Operating Performance:
Sony Bank (Non-consolidated) (1)Change from
Mar. 18

Dec. 17Mar. 18

Dec. 18

Customer assets

2,338.2

2,343.0

2,453.6+110.5+4.7%

Deposits

2,213.4

2,219.3

2,336.6+117.2+5.3%

Yen

1,847.0

1,814.7

1,931.5+116.8

+6.4%

366.4

404.6

405.0

+0.4

+0.1%

Investment trusts

124.7

123.7

117.0

(6.7)

(5.4%)

Loans outstanding

1,573.8

1,596.3

1,673.5

＋77.2

+4.8%

Mortgage loans

1,495.2

1,525.5

1,613.0

+87.4

+5.7%

18.6

18.8

18.3

(0.5)

(2.9%)(9.6)(18.6%)(JPY bn)

Foreign currencies

Card loans
OthersNon-consolidated capital *2
Adequacy ratio（domestic standard）

*1

59.9

51.8

42.2

9.46%

10.45%

10.34%(0.11pt)<Reasons for changes>◆ Increased due mainly to an increasein newly accumulated funds via theincreased number of accounts, aswell as a conversion from foreign
currencies backed by yen
depreciation.
◆ Decreased due to a conversion and atransfer from foreign ordinary
deposits into yen deposits led by yen
depreciation, despite an increase inforeign currency time deposits.

◆ Rose due to a steady increase inmortgage loans.

*1 Loans in others include corporate loans of ¥42.2 billion*2 Please refer to the graph of the non-consolidated capital adequacy ratio (domestic standard) on page 23.

Sony Financial Holdings Inc.

All Rights Reserved20

Attachment

Overview of Operating Performance:
Sony Bank (Non-consolidated) (2)<Reference> On Managerial Accounting Basis<Reference> Interest Spread(Managerial Accounting Basis)

FY17.3Q(9M)

FY18.3Q
(9M)

15.6

17.9

+2.3

+15.0%

①

17.0

18.9

+1.8

+11.1%Net fees and commissions*2 ②

(2.1)

(1.9)

+0.1

―

Net other operating income*3

0.6

0.9

+0.2

+43.3%

Gross operating profit(core profit)(A) ＝①＋②

14.9

16.9

+2.0

+13.7%

Operating expenses and other
Expenses
③

11.6

11.7

+0.1

+1.4%

Net operating profit(core profit) ＝(A)－③

3.3

5.2

+1.8

+56.7%(JPY bn)
Gross operating profit
Net interest income*1

Change■Managerial accounting basis
The following adjustments are made to the figures on a financial account for profits andlosses more appropriately.
*1: Net interest income: Includes profits and losses associated with fund investment
recorded in net other operating income, including gains or losses from currency swap
transactions.
*2: Net fees and commissions: Includes profits and losses for customer dealings in foreign
currency transactions recorded in net other operating income.
*3: Net other operating income: After the above adjustments (*1 and *2), mainly consistsof profits and losses for bond and derivative dealing transactions.
■Core profit
Profits and losses exclude net other operating income, which includes those on bond andderivative dealing transactions, and stands for Sony Bankʼs basic profits.

Yield on financing

Yield on investment（%）

Interest spread

1.18

1.12
1

0.90

+0.02pt

0.92

0.5

0.26

0.22

0
FY17.3Q(9M)

FY18.3Q(9M)

Note: Interest spread=(Yield on investment)-(Yield on financing)Sony Financial Holdings Inc.

21

All Rights Reserved

Operating Performance:
Sony Bank (Non-consolidated) (1)
Deposits
Yen Deposits

Foreign currency deposits(JPY bn)

2,112.9
2,000

Loans

348.0

2,336.6

2,219.3
404.6

Mortgage loans＋117.2

405.0

1,500

Others(JPY bn)

1,539.6
1,500

87.1

1,673.5

1,596.3
70.7

60.5 *

+77.2

1,000

1,000
1,764.9

1,814.7

1,452.4

1,931.5

1,525.5

1,613.0500
5000Mar. 17Mar. 18

Dec. 180Mar. 17Mar. 18

Dec. 18*Corporate loans of ¥42.2 billion. Card loans of ¥18.3 billion.

Sony Financial Holdings Inc.

All Rights Reserved

22

Attachment

Operating Performance:
Sony Bank (Non-consolidated) (2)Non-Consolidated Capital Adequacy Ratio

Balance of Securities by Credit Rating
AAA
BBB(Domestic Standard)

AA
A
Others（%）(JPY bn)

674.2

631.2

+36.2

15

710.5
20.9

18.1
26.1

600

306.8

299.7

10

9.75

10.45

10.34
10.34
(0.11pt)

303.0
400
82.4
109.8
200

5

135.3

160.2

232.4

298.3

0

0
Mar. 17Mar. 18

Dec. 18

Mar. 17Mar. 18

Dec. 18

Note: Calculated based on the standard FSA Notification No. 19 (2006), which
establishes standards based on Article 14-2 of the Banking Act of Japan for
determining the capital adequacy of a bank in light of the assets held by the bank.

Sony Financial Holdings Inc.

All Rights Reserved

23

Forecast of Consolidated Financial Results
for the Fiscal Year Ending March 31, 2019
(FY18)

Sony Financial Holdings Inc.

All Rights Reserved24

Attachment

Forecast of Consolidated Financial Results for FY18

We have revised downward our full-year forecast for ordinary revenues from the figure announced on April 27, 2018.
Meanwhile, we have revised our forecasts for ordinary profit and profit attributable to owners of the parent upward.
（JPY bn）

FY17（Actual）

FY18（Forecast）

ChangeFY18.3Q（Actual）

Ordinary revenues

1,503.6

1,578.0 ⇒ 1,530.0+1.8%

1,129.3

Life insurance business

Progress rate
73.8%

1,351.2

1,416.1 ⇒ 1,366.0+1.1%

1,006.6

73.7%

Non-life insurance business

110.0

112.3 ⇒ 115.0

+4.5%

86.2

75.0%

Banking business

39.9

42.8 ⇒ 44.7

+11.9％

33.7

75.5％

Ordinary profit

66.8

83.0 ⇒ 92.0

+37.6％

74.0

80.5％

Life insurance business

54.1

70.9 ⇒ 78.1

+44.2％

60.1

77.0％

Non-life insurance business

6.5

6.5 ⇒ 6.8

+3.4％

7.3

108.7％

Banking business

7.1

7.0 ⇒ 8.3

+16.1％

7.0

84.9％

Profit attributable toowners of the parent

51.8

55.0 ⇒ 60.0

+15.6％

50.4

84.1％

<Ordinary revenues and ordinary profit in each business>■Life insurance businessWe have revised downward our forecast for ordinary revenues because performance in FY18.3Q (9M) was below our initial expectations. However,
we have revised upward our forecast for ordinary profit. Despite the recording of an impairment loss relating to available-for-sale securities in thegeneral account in FY18.3Q (9M), an increase in lapses caused the provision of policy reserve to undershoot initial expectations. Also, in the generalaccount, net gains (losses) on derivative transactions to hedge market risk related to available-for-sale securities outpaced our expectations.
■Non-life insurance businessWe have revised upward our forecast for ordinary revenues, as automobile insurance premium revenues exceeded our initial expectations. Although
we expect to see increases in operating expenses and the provision for policy reserves in FY18.4Q (3M), we have revised upward our ordinary profit
forecast because performance in FY18.3Q (9M) exceeded initial expectations.
■Banking businessWe have revised upward our forecast for ordinary revenues and ordinary profit because results in FY18.3Q (9M) were higher than expected,
owing to such factors as higher interest income on investment securities.

Sony Financial Holdings Inc.

All Rights Reserved

25Sony Lifeʼs MCEV and ESR
as of December 31, 2018

Some parts of the calculations of MCEV adopted simplified method except for those as of March 31, 2018.
Please keep in mind that the validity of these calculations has not been verified by outside specialists.
*In this part, figures, ratios and percentage changes have been rounded.

Sony Financial Holdings Inc.

All Rights Reserved26

Attachment

Sony Lifeʼs MCEV
ChangefromMar. 18

ChangefromSep. 18

Mar. 18

Sep. 18

Dec. 18

1,633.2

1,715.3

1,664.6＋31.5(50.6)

Adjusted net worth

1,786.1

1,560.0

1,824.1＋38.0＋264.1

Value of existing business(152.9)155.3(159.4)(6.5)(314.7)(JPY bn)

FY17.4Q(3M)

FY18.1Q(3M)

FY18.2Q(3M)

FY18.3Q(3M)

FY18.3Q(9M)

New business value

21.2

21.9

22.6

23.7

68.2

New business margin

6.1%

7.1%

6.9％

7.3％

7.1％

(JPY bn)

MCEV

 Reasons for changes in MCEV
・MCEV as of December 31, 2018 decreased ¥50.6 billion from September 30, 2018, due mainly to a decrease
in interest rates in Japanese yen.
 New business value / New business margin
・New business value for FY18.3Q (3M) was ¥23.7 billion, due to a steady acquisition of new policies.
・New business margin for FY18.3Q (3M) was up 0.4pt from FY18.2Q (3M), due mainly to the level of U.S. dollar
interest rates was higher through FY18.3Q (3M) compared with FY18.2Q (3M).

Notes:
1. Calculated MCEV as of June 30, 2018 onward by using mainly updated economic assumptions and lapse and surrender rate from March 31, 2018.
2. New business value and new business margin are calculated accumulating new business value for each month based on economic assumptions at the end of each month.
The figures for FY18 onward reflect the revision in the insurance risk measurement method and others which revised in March 31, 2018. For details of the revision in
the insurance risk measurement method and others, please refer to the Presentation Materials “Consolidated Financial Results for the Fiscal Year Ended March 31, 2018
and Sony Lifeʼs Preliminary MCEV as of March 31, 2018.”*Please refer to the appendix page 41-44 for trend on bond yields and yield curves.

Sony Financial Holdings Inc.

27

All Rights ReservedSony Lifeʼs ESR(JPY bn)

Insurance riskMar. 18

Sep. 18

Dec. 18

497.5

488.7

513.9

380.6

407.6

385.3

275.3

300.7

264.1

Operational risk

31.0

33.0

31.9

Counter party risk

2.6

2.7

2.9

(182.0)(187.8)(185.9)

729.7

744.1

748.0

Market-related risk
Of which, interest rate risk

Variance effect
The risk amount based on
economic value(JPY bn)

MCEV + Frictional costs
ESR

Mar. 18

Sep. 18

Dec. 18

1,655.8

1,731.6

1,685.7

227%

233%

225%

 The risk amount based on economic value as of December 31, 2018 amounted to ¥748.0 billion, up ¥3.9 billion
from September 30, 2018, due mainly to an increase in insurance risk.
 ESR as of December 31, 2018 was 225%, down 7pt from September 30, 2018.
Notes:
1. The risk amount based on economic value refers to the total amount of Sony Lifeʼs risks comprehensively examined by a market consistent approach, including
insurance risk and market-related risk and others.
2. The solvency risk capital on an economic value basis is calibrated at VaR (99.5) over one year and based on the internal model.
3. Risk amount excluding the variance effect within market-related risk.
4. ESR=(MCEV + Frictional costs) / Risk amount based on economic value.

Sony Financial Holdings Inc.

All Rights Reserved28

Attachment

AppendixSony Financial Holdings Inc.

All Rights Reserved

29

Recent Topics
 Sony Bankʼs Mortgage Loans through Sony Life
Sony Life accounts for 11% of the amount of new mortgage loans for FY18.3Q (9M)Sony Life accounts for 20% of the balance of mortgage loans as of December 31, 2018
*Sony Life started handling banking agency business in January 2008.

 Sony Assuranceʼs Automobile Insurance sold by Sony Life
Sony Life accounts for 5% of new automobile policies for FY18.3Q (9M)*Sony Life started handling automobile insurance in May 2001.

 Highlights on and after FY18.3Q
2018-10-01

Sony Bank began offering new mortgage loan, "Fixed-rate Select Mortgage Loan" and new group credit life
insurance with disease protection rider

2018-10-15

Sony Assurance began selling new internet-only fire insurance

2018-11-30

Sony Financial Ventures Invested in CROWD CREDIT, Inc., a Social Lending Company

2018-12-12Sony Life extended its simplified claims process for hospitalization benefits and operation insurance benefits

2019-1-31

Sony Lifecare announced to open new 5th nursing care home in Shinjuku, Tokyo *planning to open in spring, 2020

Sony Financial Holdings Inc.

All Rights Reserved30

Attachment

Sony Lifeʼs Product Portfolio
Annualized Premiums from New Policies by Product
FY18.3Q（9M）FY17（12M）¥73.0 billion¥57.0 billion

U.S. dollardenominatedwhole life
13%
Yen whole
life 6%

Endowment/
Annuities
29%

Yen wholelife
3%

U.S. dollardenominatedsinglepremium
whole life
insurance
6%

U.S. dollardenominatedwhole life 14%

Endowment/
Annuities
32%

U.S. dollardenominatedsinglepremium
whole life
insurance
6%

Protection-type（term-life）
45％

Protection-type（term-life）
47％

Sony Financial Holdings Inc.

All Rights Reserved

31Sony Lifeʼs Asset Management
Purchase Securities in the General AccountFY17（12M）

Japanesestocks 0.5%

FY18.3Q（9M）

Foreign
bonds
23.5%

Foreign
bonds
18.5%

Japanese
corporate
bonds
25.9%

Japanesestocks 0.3%

JGBs
55.1%
社債
11.9%

Japanese
corporate
社債
bonds
25.9%
13.5%

JGBs
62.7%

国債
85.3%
Notes:
1. Japanese corporate bonds include FILP agency bonds and Government-guaranteed bonds.
2. The graphs above are asset allocation for the relevant period. Total invested amount for the relevant period as 100%.
(excluding, investment in subsidiaries and affiliates, and strategic investments)

Sony Financial Holdings Inc.

All Rights Reserved

32

Attachment

Sony Lifeʼs General Account Assets
Breakdown of General Account Assets
Mar. 18<Asset management review>Dec. 18

Amount%Amount%Japanese bonds(including JGBs)

7,281.1

86.3%

7,637.9

85.4%

Japanese stocks

38.4

0.5%

29.2

0.3%

Foreign bonds

366.5

4.3%

503.4

5.6%

Foreign stocks

30.3

0.4%

24.2

0.3%

Money held in trust

270.5

3.2%

267.6

3.0%

Policy loans

189.4

2.2%

195.6

2.2%

Real estate*

92.3

1.1%

91.1

1.0%

Cash and call loans

40.8

0.5%

55.4

0.6%

Others

129.1

1.5%

141.0

1.6%

8,438.8

100.0%

8,945.9

100.0%Total

We have continued to accumulate
ultralong-term bonds to match the liability
characteristics of insurance policies withlong-term maturities with the aim of
reducing interest rate risk.
<Bond duration>
Mar. 17 21.3 years
Mar. 18 21.4 years
Dec. 18 21.3 years■ Investment in the money held in trust is
mainly into Japanese bonds.
■ The holding ratio on the real status ofJapanese bonds including those invested
in money held in trust in the generalaccount :Mar. 17・・・90.1%
Mar. 18・・・89.5%
Dec .18・・・88.4%*Real estate is the total of land, buildings, and construction in progress.

Sony Financial Holdings Inc.

33

All Rights ReservedSony Life: Fair Value Information on Securities(General Account Assets)
Fair Value Information on Securities
Fair value information on securities with market value (except trading-purpose securities)
Mar. 17（JPY bn）

Mar. 18

Dec. 18

Carrying
amountFair value

Net unrealized
gains (losses)

Carrying
amountFair value

Net unrealized
gains (losses)

Carrying
amountFair value

Net unrealized
gains (losses)

6,068.6

7,514.2

1,445.5

6,467.9

8,050.6

1,582.6

6,711.2

8,320.7

1,609.5

Policy reserve matching
bonds

277.3

303.3

25.9

401.9

436.8

34.8

603.6

647,4

43.8

Available-for-salesecurities

896.5

1,069.9

173.3

921.9

1,091.1

169.1

965.1

1,123.7

158.6

Japanese bonds(including JGBs)

852.6

1,013.3

160.7

847.0

1,002.1

155.0

867.3

1,017.7

150.4

Japanese stocks

13.6

27.0

13.3

13.6

30.6

16.9

10.5

20.3

9.7

Foreign securities

30.0

29.1

(0.8)

61.0

58.1

(2.9)

87.1

85.3

(1.7)

Other securities

0.1

0.3

0.1

0.1

0.2

0.1

0.1

0.2

0.1

7,242.5

8,887.5

1,644.9

7,791.9

9,578.6

1,786.7

8,279.9

10,091.8

1,811.9

Held-to-maturity securities

Total

Note: The above table includes money held in trust other than trading-purpose securities.

Valuation gains (losses) on trading-purpose securities
Mar. 17
Balance sheet
amountMar. 18

Net valuation gains (losses)
recorded in income

2.0（JPY bn）(0.1)

Balance sheet
amountDec. 18

Net valuation gains (losses)
recorded in income－

Sony Financial Holdings Inc.

(0.0)

All Rights Reserved

Balance sheet
amount1.1

Net valuation gains (losses)
recorded in income

(0.3)

34

Attachment

Sony Lifeʼs Interest Income and Dividends (Details)

FY17.3Q(9M)（JPY mn）

Cash and deposits

FY18.3Q(9M)

Change00+ 145.4%

Japanese bonds(including JGBs)

93,50497,082+ 3.8%

Japanese stocks

380

377

(0.9%)

10,47914,538+ 38.7%127

293+ 130.9%

Loans

4,957

5,124

+ 3.4%

Real estate

8,048

6,578

(18.3%)

290

409+ 40.9%117,788

124,403+ 5.6%

Foreign securities
Other securities

Others
Total

Sony Financial Holdings Inc.

35

All Rights ReservedSony Lifeʼs Capital Gains (Losses)（JPY mn）
Capital losses

FY17.3Q (9M)

FY18.3Q (9M)

25,80914,420

－

293

0

34

Losses on trading securities, net
Losses on sale of securities…(3)Devaluation losses on securities…(4)

－

4,026

23,990784

Losses on hedges of variable life
insurance…(1)13,515(1,696)

Losses on hedges of available-forsale securities…(2)5,877(1,692)Losses on U.S. dollar-denominatedinsurance…(5)

3,445

4,141

－

－

1,819

9,280

1,155

9,280

Losses on derivatives, net

Foreign exchange losses, net
Other capital losses
Losses on U.S. dollar-denominatedinsurance（the provision of policy
reserves for foreign exchange
fluctuations)…(5)（JPY mn）
Capital gains

FY17.3Q (9M)

FY18.3Q (9M)

2,851

17,726

Income from trading securities, net

47－

Gains on sale of securities…(3)

0

4,581

Gains on derivatives, net

－

－

2,804

13,1452,189

13,036－－(22,958)

3,306

Foreign exchange gains, net
Gains on U.S. dollardenominated insurance(foreign exchange gains inseparate accounting）…(5)Other capital gains

Net capital gains (losses)

Note: The figures of income (losses) from trading securities, net, gains (losses)
on derivatives and foreign exchange gains (losses), net were recorded
after offsetting gains and losses of each item.

●Capital Gains (Losses) on Main Items, Net Amounts
FY17.3Q (9M)

FY18.3Q (9M)

(1) Gains (Losses）on hedges of variable
life insurance(13,515)1,696(2) Gains (losses）on hedges ofavailable-for-sale securities(5,877)1,692(3) Gains (losses) on sale of securities

0

4,547

(4) Devaluation losses on securities－(4,026)(2,411)(384)（JPY mn）(5) Gains (losses) on U.S. dollardenominated insuranceSony Financial Holdings Inc.

All Rights Reserved36

Attachment

Sony Lifeʼs Quarterly Trend on New Policy Amount
Quarterly Trend on New Policy Amount(Individual Life Insurance + Individual Annuities)(JPY bn)

2,000

1,842.4
1,674.7

1,750
1,500
1,250

1,457.7
1,260.0

1,189.0
1,050.7

1,115.8

1,114.8

FY17.1Q

FY17.2Q

1,485.0

1,435.5

FY18.2Q

FY18.3Q

1,214.7

1,000
750
500
250
0
FY16.1Q

FY16.2Q

FY16.3Q

FY16.4Q

Sony Financial Holdings Inc.

FY17.3Q

FY17.4Q

FY18.1Q

37

All Rights ReservedSony Lifeʼs Quarterly Trend on
Annualized Premiums from New Policies
Quarterly Trend on Annualized Premiums from New Policies(Individual Life Insurance + Individual Annuities)

Annualized premiums from new policies

Of which, third-sector(JPY bn)

25

23.9
20.5

20

19.5

18.2
15.3

15

21.1
18.7

16.1

16.2

3.1

2.8

3.3

3.6

3.3

FY17.1Q

FY17.2Q

FY17.3Q

FY17.4Q

FY18.1Q

19.2

18.9

3.9

3.8

FY18.2Q

FY18.3Q

10

5
4.1

3.9

FY16.1Q

FY16.2Q

0

3.1
FY16.3Q

4.4
FY16.4Q

Sony Financial Holdings Inc.

All Rights Reserved38

Attachment

Sony Lifeʼs Quarterly Trend on New Business Value
Quarterly Trend on New Business Value(JPY bn)

25
19.9

20

21.2

21.9

22.6

23.7

17.2
14.1

15

12.2
10.2

10
5.0

5
0
（0.2)
(5)

FY16.1Q FY16.2Q FY16.3Q FY16.4Q FY17.1Q FY17.2Q FY17.3Q FY17.4Q FY18.1Q FY18.2Q FY18.3Q
Note: New business value is calculated accumulating new business value for each month based on economic assumptions at the end of each month.
The figures for FY18 onward reflect the revision in the insurance risk measurement method and others which revised on March 31, 2018.

Sony Financial Holdings Inc.

39

All Rights Reserved

Operating Performance : AEGON Sony Life Insurance◆AEGON Sony Life Insurance sells individual variable annuities.

Number and Amount of Policies in Force

Number and Amount of New Policies
New policy amount(JPY bn)60

Number of new polices [ ]53.3[10.5]

50

Policy amount in force

Number of policies in force [ ](Thousandsof policies)(JPY bn)

15

600

10

400

80

5

200

40

0

0-

-0

523.1

520.6

[90.9][92.5](Thousandsof policies)

519.3[94.0]

120

37.9
[8.0]

40
30

20.3
[4.1]

20
10
0

FY16.3Q(9M)
FY17.3Q(9M)
FY18.3Q(9M)Net income (losses) for AEGON Sony Life Insurance and SA Reinsurance(JPY bn)

FY17.3Q(9M) FY18.3Q(9M)

Dec. 17Mar. 18

Dec. 18

ChangeAEGON Sony Life Insurance

（3.3)

(2.6)

+0.7

SA Reinsurance

(0.2)

1.7

+2.0

AEGON Sony Life Insurance and SA Reinsurance are equity method companies, 50-50 joint venture established by Sony Life and AEGON Group.
SA Reinsurance prepares its financial statements in accordance with U.S. GAAP. 50% of the net income (losses) for AEGON Sony Life Insurance andSA Reinsurance are recognized as investment profit (losses) on equity method in the SFHʼs consolidated net income.

Sony Financial Holdings Inc.

All Rights Reserved40

Attachment

Trend on JGB Yields (Par rate)
1.20%

10 years
20 years

1.00%

30 years
40 years

0.80%

0.60%

0.40%

0.20%

0.00%
Mar.18Apr.18 May.18 Jun.18

Jul.18Aug.18 Sep.18

Oct.18Jul.18

Sep.18

Nov.18 Dec.18

As of the end of each month
Mar.18Apr.18May.18Jun.18Aug.18Oct.18

Nov.18

Dec.1810 years

0.04%

0.06%

0.04%

0.04%

0.05%

0.11%

0.13%

0.13%

0.10%

0.01%

20 years

0.53%

0.53%

0.51%

0.51%

0.53%

0.62%

0.66%

0.65%

0.60%

0.51%

30 years

0.74%

0.75%

0.72%

0.72%

0.74%

0.83%

0.89%

0.88%

0.82%

0.72%

40 years

0.89%

0.88%

0.86%

0.85%

0.86%

0.97%

1.03%

1.01%

0.95%

0.85%

Sony Financial Holdings Inc.

41

All Rights Reserved

Trend on Risk-free Rate (Japanese yen/Par rate)
2.00%
Convergence
period:20 yearMar.181.50%

Jun.18
Sep.18
Dec.18

1.00%

0.50%

0.00%
Last liquid point:
40 year(0.50%)△0.50%

1 year

10

20

30

40

50

60

70

80

years

years

years

years

years

years

years

years

*For above risk-free rate, we employ the Smith-Wilson method for extrapolation so that the 60-year forward rate will coverage on the UFR (3.5%).

Sony Financial Holdings Inc.

All Rights Reserved42

Attachment

Trend on U.S. Dollar Bonds Yields (Par rate)
3.50%
10 years

3.40%

20 years

3.30%

30 years

3.20%
3.10%
3.00%
2.90%
2.80%
2.70%
2.60%
2.50%
Mar.18 Apr.18 May.18 Jun.18

Jul.18Aug.18 Sep.18

Oct.18 Nov.18 Dec.18

Jul.18

Sep.18

As of the end of each month
Mar.18Apr.18May.18Jun.18Aug.18Oct.18

Nov.18

Dec.1810 years

2.74%

2.95%

2.86%

2.86%

2.96%

2.86%

3.06%

3.14%

2.99%

2.69%

20 years

2.85%

3.02%

2.93%

2.91%

3.02%

2.93%

3.14%

3.28%

3.14%

2.84%

30 years

2.97%

3.12%

3.03%

2.99%

3.08%

3.02%

3.21%

3.39%

3.29%

3.02%

Sony Financial Holdings Inc.

43

All Rights Reserved

Trend on Risk-free Rate (U.S. Dollar /Par rate)
3.50%
Convergence
period: 30 year

3.00%

2.50%

Mar.18Jun.182.00%

Sep.18
Dec.18

Last liquid point:
30 year
1.50%

1 year

10

20

30

40

50

60

70

80

years

years

years

years

years

years

years

yeras

*For above risk-free rate, we employ the Smith-Wilson method for extrapolation so that the 60-year forward rate will coverage on the UFR (3.5%).

Sony Financial Holdings Inc.

All Rights Reserved

44

Attachment

Detail of Consolidated Adjusted ROE

FY2017(12M)

FY17.3Q(9M)

FY18.3Q(9M)

Consolidated Adjusted ROE

6.1％

4.5%

5.1%

(Sony Life) Core ROEV*

5.9％

4.2％

4.8％

(Sony Assurance) Adjusted ROE

16.1％

12.5％

14.3％

(Sony Bank) ROE

5.5％

3.9%

5.3%

*The figures for FY17 and FY17.3Q excluded the impact of the revision in the insurance risk measurement method and others
for Sony Life.

Sony Financial Holdings Inc.

45

All Rights Reserved

Detail of Consolidated Adjusted Profit andConsolidated Adjusted Capital
Adjusted profit（Numerator)
Sony Financial Group（consolidated）(JPY bn）

Adjusted profit (consolidated)

Sony Life (non-consolidated) (JPY bn）

Adjusted capital (Denominator）
FY201798.8
FY2017

FY17.3Q(9M)

FY18.3Q
(9M)

70.8

90.8

FY17.3Q(9M)

FY18.3Q(9M)

Sony Financial Group（consolidated）

Adjusted capital (consolidated)
Sony Life (non-consolidated)

New business value *1

70.4

49.2

68.2

①MCEV as of the beginning of the
fiscal year

Expected existing business
contribution *1

16.3

12.8

10.7

②Dividends paid

Adjusted profit

86.7

62.0

78.9

FY2017

FY17.3Q(9M)

FY18.3Q(9M)

Sony Assurance(JPY bn）

Net income

4.8

3.6

5.2

Provision amount for catastrophe
reserve (after tax)

2.4

1.8

1.9

Provision amount for reserve forprice fluctuations (after tax)

0.0

0.0

0.0

Adjusted profit

7.3

5.5

7.2

FY2017

FY17.3Q(9M)

FY18.3Q
(9M)

3.3

4.6

Sony Bank (consolidated)(JPY bn）

Profit attributable to owners of theparent4.7(JPY bn）(JPY bn）

FY2017

FY17.3Q(9M)

FY18.3Q(9M)

1,607.6

1,592.2

1,773.5

FY2017

FY17.3Q(9M)

FY18.3Q(9M)

1,441.0

1,441.0

1,633.1

23.1

23.1

26.2

③MCEV as of the end of the period *2*3

1,536.5

1,509.5

1,664.6

Adjusted capital

1,477.2

1,463.7

1,635.7

FY2017

FY17.3Q(9M)

FY18.3Q(9M)①The average amount of net assets
during the period

33.1

31.6

35.3

②The average amount of catastrophe
reserve (after tax) during the period

15.0

14.4

17.0

③The average amount of reserve forprice fluctuations (after tax) during theperiod

0.1

0.1

0.1

Adjusted capital （①＋②＋③）

45.2

44.1

50.4

FY2017

FY17.3Q(9M)

FY18.3Q
(9M)

85.1

84.3

87.3

（①－②＋③）/２

Sony AssuranceSony Bank (consolidated)(JPY bn）(JPY bn）

Adjusted capital（The average amountof net assets during the period）*1. Please keep in mind that the validity of these calculations has not been verified by outside specialists for the figures for FY17.3Q and FY18.3Q.
*2. Please keep in mind that the validity of these calculations has not been verified by outside specialists.
*3. The figures for FY17 and FY17.3Q excluded the impact of the revision in the insurance risk measurement method and others.
Note: The figures on this page unit have been truncated. Therefore, some figures may differ from other pages.

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Attachment

Definition of Consolidated Adjusted ROE
Calculation of Consolidated Adjusted ROE
Since each company of Sony Financial Group differs by industry such as insurance and banking,each group company calculate its “Adjusted ROE” based on adjusted profit and adjusted capital
to realize its corporate value and capital efficiency.
Sony Financial Group *Sony Life
Core ROEVSony Assurance
Adjusted ROE

Numerator(Adjusted
profit)New business value +Expected existing business
contribution

Net income (loss) + Provision
amount for catastrophe
reserve and its provision
amount for reserve for pricefluctuations, in each case②
after taxes＋

Denominator(Adjusted
capital)MCEV as of the beginning of
the fiscal year less dividends
paid plus MCEV as of the endof the fiscal year, divided bytwo.

The average amount of net
assets plus the sum ofcatastrophe reserve and its
reserve for price fluctuations
during the fiscal year, ineach case after taxes
⑤

＋

＋

①

④

＋

Sony Bank
ROE
Profit (loss) attributable toowners of the parent③③

The average amount of net
assets during the fiscal year⑥⑥

* Consolidated Adjusted ROE = Consolidated Adjusted Profit divided by Consolidated Adjusted Capital
Consolidated Adjusted Profit ＝ ①＋②＋③
Consolidated Adjusted Capital ＝ ④＋⑤＋⑥

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Contact︓
Investor Relations Department
Sony Financial Holdings Inc.
TEL︓+81-3-5290-6500

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