May 15, 2019Sony Financial Holdings Inc.

Summary Information on Sony Assurance’s Financial Results
for the Year Ended March 31, 2019
<Contents>
1. Balance Sheets

P.2

2. Statements of Income

P.4

3. Financial Summary

P.5

4. Premiums and Losses Paid by Type of Policy

P.7

5. Risk-monitored Loans

P.7

6. Securities

P.8

7. Non-consolidated Solvency Margin Ratio

P.9

Disclaimer:This English translation is prepared for the readers’ convenience. When there are any discrepancies between originalJapanese version and English translation version, the original Japanese version always prevails.

11. Balance Sheets(Millions of yen)
As of March 31, 2018

As of March 31, 2019

Assets:Cash and deposits

23,77820,04300Deposits

23,77820,043

Securities

145,349

157,959

Japanese government bonds

82,422

76,390Japanese local government bonds

34,95450,504

Japanese corporate bonds

24,75029,268Japanese stocks

3,023

1,599

Foreign securities

197

198

Tangible fixed assets

2,407

1,689

177

169

－63

2,229

1,456

6,196

10,012

Software

5,008

6,646

Software in progress

1,178

3,356

99

17,14918,609Accrued premiums

1,238

1,234

Due from reinsurers

4290

Due from foreign reinsurers

015

10,432

11,115

Accrued income

149

161

Money on deposits

493

530

Suspense payments

4,831

5,260

9,480

11,328204,362

219,643

CashBuildings
Construction in progress
Other tangible fixed assets
Intangible fixed assets

Other intangible fixed assets
Other assets

Accounts receivable

Deferred tax assets
Total Assets2

(Millions of yen)
As of March 31, 2018

As of March 31, 2019

Liabilities:
Underwriting reserves

156,612

168,494

Reserve for outstanding losses and claims

39,53540,674

Underwriting reserves

117,077

127,819

11,55313,018Due to reinsurers

55

235

Due to foreign reinsurers

105

Income taxes payable

2,363

1,938

Deposits received

66

73

Accounts payable

3,761

5,099

Suspense receipt

5,295

5,666

Reserve for employees’ retirement benefits

1,667

1,857

Reserve for employees’ bonuses

1,132

1,236

Reserve under the special laws

206

238

Reserve for price fluctuations

206

238

171,173

184,844

20,00020,000Capital reserve

3,389

3,389

Total capital surplus

3,389

3,389

Legal retained earnings

610

1,092

Other retained earnings

7,261

9,367

7,261

9,367

Total retained earnings

7,872

10,460Total shareholders’ equity

31,261

33,849Net unrealized gains (losses) on available-for-salesecurities, net of taxes

1,927

949

Total valuation and translation adjustments

1,927

949

33,18934,798204,362

219,643

Other liabilities

Total Liabilities
Net Assets:
Shareholders’ equity
Common stock
Capital surplus

Retained earnings

Unappropriated retained earnings

Valuation and translation adjustments

Total Net Assets
Total Liabilities and Net Assets

32. Statements of Income(Millions of yen)
For the year endedMarch 31, 2018

For the year ended
March 31, 2019110,092

115,102108,316

113,174

108,254

113,101

62

72

1,731

1,857

1,324

1,372

Gains on sale of securities

470

557

Transfer to interest and dividends on deposits of premiums

(62)

(72)

4370

103,517108,204

Underwriting expenses

74,41978,435Net losses paid

52,48256,608Loss adjustment expenses

8,067

8,220

Net commissions and brokerage fees

1,771

1,724

Provision for reserve for outstanding losses and claims

1,194

1,139

Provision for underwriting reserves

10,903

10,741－0－

029,09629,766

2222

6,574

6,897

Extraordinary Gains－－

Extraordinary Losses

3539

Losses on sale or disposal of fixed assets

57

Provision for reserve under the special laws

29

31

Provision for reserve for price fluctuations

2931

Income Before Income Taxes

6,539

6,858

Income Taxes –Current

3,497

3,325

Income Taxes –Deferred(1,780)(1,466)

Total Income Taxes

1,717

1,858

Net Income

4,821

4,999

Ordinary Revenues
Underwriting income
Net premiums written
Interest and dividends on deposits of premiums
Investment income
Interest income and dividends

Other ordinary income
Ordinary Expenses

Investment expenses
Losses on sale of securities
Operating, general and administrative expenses
Other ordinary expenses
Other ordinary expenses
Ordinary Profit43. Financial Summary (Comparison to previous year)(Millions of yen)
For the year ended
March 31, 2018

For the year ended
March 31, 2019

YoY change(Amount)

YoY change(%)

Gross direct premiums written

107,008

112,198+5,189+4.8

Direct premiums written

107,008

112,198+5,189+4.8

108,316

113,174+4,857+4.5

108,254

113,101+4,847+4.5Underwriting expenses

74,41978,435+4,015+5.4

Net losses paid

52,48256,608+4,126+7.9

Loss adjustment expenses

8,067

8,220+153+1.9

Net commissions and brokerage fees

1,771

1,724(47)

(2.7)

1,731

1,857

+125+7.3

1,324

1,372+48+3.7

470

557

+87+18.6

－

0+0－－

0+0－

Operating, general and administrative expenses

29,096

29,766+670+2.3

Operating, general and administrative
expenses related to underwriting

29,032

29,687+655+2.3

41

67+26+62.9

6,574

6,897+323+4.9

4,863

5,050

+186+3.8

Extraordinary Gains－－－－

Extraordinary Losses

35

39+4+12.0

Extraordinary gains (losses), net(35)

(39)

(4)

－

Income Before Income Taxes

6,539

6,858+319+4.9

Income Taxes –Current

3,497

3,325(172)(4.9)

Income Taxes –Deferred(1,780)(1,466)+313－

Total Income Taxes

1,717

1,858

+140+8.2

Net Income

4,821

4,999+178+3.7

Net loss ratio

55.9%

57.3%

Underwriting income
Net premiums written

Investment income
Interest income and dividends
Gains on sale of securities
Investment expenses
Losses on sale of securities

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

Net expense ratio

28.5%

27.8%

Yield on investments (income basis)

0.85%

0.80%

Yield on investments (realized basis)

1.15%

1.12%

(Reference)
Yield on investments (fair value basis) : 1.77% for the year ended March 31, 2018 and 0.33% for the year ended March 31, 2019.
Notes:
1. Underwriting profit = Underwriting income – (Underwriting expenses + Operating, general and administrative expenses related to underwriting) ± Other income (expenses).
Other income (expenses) is the amount equivalent to the corporate income taxes for compulsory automobile liability insurance, etc.
2. Calculation method for yield on investments is described in next page.

5

Attachment

Calculation methods for yield on investments
1. Yield on investments (income basis)
The results of investment in assets are indicated as income revenues (interest income and dividends).
Interest income and dividends on investment assets is the numerator, and acquisition cost is the denominator.
• Numerator: Interest income and dividends• Denominator: Average balance of either acquisition cost or amortized cost
2. Yield on investments (realized basis)
The results of investment in assets are indicated as the contribution to net income (loss) for the period(statements of income).
Realized profit and loss is the numerator, and acquisition cost is the denominator.
• Numerator: Investment income + Interest and dividends on deposits of premiums – Investment expenses• Denominator: Average balance of either acquisition cost or amortized cost
3. (Reference) Yield on investments (fair value basis)
An indicator of investment efficiency based on fair value. Realized profit and loss plus net unrealized gains is
the numerator, and fair value of investment assets is the denominator.
• Numerator = (Investment income + Interest and dividends on deposits of premiums – Investment expenses)+ (Net unrealized gains (losses) at end of period* – Net unrealized gains (losses) at end of
previous period*)• Denominator =Average balance of either acquisition cost or amortized cost
+ Net unrealized gains (losses) on available-for-sale securities at end of previous period**Amounts before tax deductions

64. Premiums and Losses Paid by Type of Policy
Direct premiums written(Millions of yen)
For the year ended
March 31, 2018
AmountComposition

206

0.2

For the year ended
March 31, 2019
YoY change%
FireMarine

AmountComposition

616

0.5%
(15.9)

YoY change%%+198.8－－－－－－Personal accident

8,679

8.1

(1.0)

8,823

7.9

+1.7

Voluntary automobile

98,12391.7+9.0

102,758

91.6

+4.7

－

－－－－－

107,008

100.0

+8.1

112,198

100.0+4.8

Compulsory automobile liability

Total

Net premiums written(Millions of yen)

For the year ended
March 31, 2018
AmountComposition

For the year ended
March 31, 2019
YoY change%

AmountComposition%

YoY change%

%

Fire

160.0(34.4)

265

0.2

+1,533.0

Marine

00.0

－(0)

(0.0)

(100.0)

Personal accident

8,887

8.2

(1.7)

8,872

7.8(0.2)

Voluntary automobile

97,88090.4+9.1

102,458

90.6

+4.7

1,469

1.4+0.6

1,505

1.3

+2.4

108,254100.0+8.0

113,101

100.0

+4.5

Compulsory automobile liability

Total
Net losses paid, net loss ratio(Millions of yen)

For the year ended
March 31, 2018
AmountYoY change

For the year ended
March 31, 2019
Net loss ratio%

AmountYoY change%

Net loss ratio%%

Fire6(1.4)

247.1

15+126.8

Marine2－308.8

10+291.0

21.0－

Personal accident

2,692+2.9

33.7

3,009+11.7

37.6

Voluntary automobile

52,223+7.8

58.6

48,464+4.8

57.4

Compulsory automobile liability

1,316+1.1

89.6

1,350+2.6

89.7

Total

52,482+4.6

55.9

56,608+7.9

57.3

5. Risk-monitored Loans
Not applicable76. Securities(1) Trading-purpose Securities
Not applicable(2) Held-to-maturity Securities(Millions of yen)
As of March 31, 2018

As of March 31, 2019

Balance sheet
amountFair value

Difference

Balance sheet
amountFair value

Difference

Japanese bonds

74,38391,556

17,172

79,921

101,571

21,650Foreign securities

197

211

13198

208

10

74,581

91,767

17,185

80,119101,779

21,660Fair value exceeding balance sheet amount

Subtotal
Fair value not exceeding balance sheet amountJapanese bonds
Total

4,496

4,173

(323)

－－－

79,07895,94016,862

80,119101,779

21,660(3) Available-for-sale Securities(Millions of yen)
As of March 31, 2019

As of March 31, 2018
Balance sheet
amountAcquisition
cost

Difference

Balance sheet
amountAcquisition
cost

Difference

Japanese bonds

40,24540,151

93

49,97049,89970

Japanese stocks

3,023

412

2,610

1,599

324

1,274

Subtotal

43,26840,5642,704

51,56950,223

1,345

23,002

23,029(27)

26,271

26,298(27)

66,27063,593

2,677

77,84076,521

1,318

Balance sheet amount exceeding acquisition cost

Balance sheet amount not exceeding acquisition costJapanese bonds
Total(4) Available-for-sale Securities Sold during the Fiscal Year

(Millions of yen)

For the year ended March 31, 2018

For the year ended March 31, 2019
Total gains
on salesTotal losses
on sales

3,108

90－

637

547

－

－

3,746

557

0

Amount ofsales

Total gains
on salesTotal losses
on salesJapanese bonds

4,622

14－

Japanese stocks

573

455

5,195

470

Total

8

Amount ofsales

7. Non-consolidated Solvency Margin Ratio(Millions of yen)(A) Total non-consolidated solvency margin
Capital or treasury, etc.

As of March 31, 2018

As of March 31, 201954,24460,01028,84931,349Reserve for price fluctuations

206

238

Contingency reserve

109

122

Catastrophe reserve

20,97024,636

－

－

2,409

1,186

－

－

Excess refund reserve－－

Subordinated debt
The portion of the excess refund reserve and subordinated debt
that is not included in the margin
Deductible items－－－－

General reserve for possible loan losses
Net unrealized gains on available-for-sale securities and net deferredgains (losses) on hedging instruments (before tax deductions)
Net unrealized gains on real estate

－－

1,698

2,476

(R1+R2)2+(R3+R4)2+R5+R6

13,871

14,760Ordinary insurance risk

(R1)

12,395

13,181

Third-sector insurance risk

(R2)

－0

Assumed interest rate risk

(R3)

114

123

Asset management risk

(R4)

1,712

1,861

Business management risk

(R5)

305

325

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

1,036

1,105

782.1 %

813.0 %

Others(B) Total non-consolidated risk[(A)／{(B)×1/2}]×100

Note: The above figures are calculated based on provisions in Articles 86 and 87 of the Ordinance for Enforcement of the Insurance
Business Act of Japan and the Ministry of Finance Public Notice No. 50 of 1996.
<Non-consolidated Solvency Margin Ratio>
Non-life insurance companies maintain reserves to ensure their ability to pay claims when accidents occur and return contracted amountat maturity on savings-type insurance. Non-life insurance companies must also maintain sufficient ability to cover against risk event
which exceed its normal estimates, i.e. occurrence of a major catastrophe or a dramatic drop in the value of the assets they holdTotal risk (item (B) in the table) indicates risk events which exceed the normal estimates. The non-consolidated solvency margin rati
(item (C) in the table) is an indicator of an insurer’s ability to pay, calculated as prescribed by the Insurance Business Act of Japan
based on its percentage holdings of capital and other reserves (in other words, the total non-consolidated solvency margin, as indicateby (A) ).
“Risk events which exceed the normal estimates” refers to the total of the amounts represented by the following risk: Risk which exceeds the normal estimates for the rate of accident occurrenc(1) Insurance underwriting risk
(Ordinary insurance risk)(excluding major catastrophe risk)(Third-sector insurance risk)(2) Assumed interest rate risk
: Risk that actual investment yields will fall below the investment yield assumed whencalculating premiums(3) Asset management risk
: Risk arising from such factors as unexpectedly large fluctuations in prices on held securities
and other assets(4) Business management risk
: Unexpected risk to business management other than (1) through (3) above and (5)(5) Major catastrophe risk

: Risk arising from major catastrophes (such as the Great Kanto Earthquake and theIse Bay Typhoon)

A non-life insurer’s ability to pay (total non-consolidated solvency margin), as indicated by such factors as its capital and reserves
is the total of the insurer’s net assets (excluding the amount of expected outflow from the company), reserves (such as the reserve fo
price fluctuations and catastrophe reserve) and a portion of its net unrealized gains on real estateThe non-consolidated solvency margin ratio is one of the objective indicators used by the insurance regulatory authorities to supervise
insurers. When this ratio is 200% or higher, an insurer is judged to have sufficient ability to satisfy claims and other payments

9