Consolidated Financial Summary (Japanese GAAP)
for the Six Months Ended September 30, 2019
November 12, 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 six months ended September 30, 2019(1) Operating results
Ordinary Revenues
Millions of yen% change

Millions of yen% change

Millions of yen% change894,498

3.9

59,69626.4

40,45027.3

860,895

21.5

47,22844.6

31,77047.1

For the six months ended
September 30, 2019
For the six months ended
September 30, 2018
Note: Comprehensive income:

Profit Attributable to Owners of
the Parent

Ordinary Profit

For the six months ended September 30, 2019:¥

51,859 million:

170.0%For the six months ended September 30, 2018:¥19,205 million:(22.4)%Net Income per
Share(Fully Diluted)

Net Income per
Share
For the six months ended
September 30, 2019
For the six months ended
September 30, 2018

Yen

Yen

92.98

92.96

73.04

73.02

(2) Financial condition
Total Assets
As of September 30, 2019
As of March 31, 2019
Note: Net assets attributable to shareholders:

Total Net Assets

Net Asset Ratio

Millions of yen

Millions of yen%

14,143,342
13,468,215

681,612656,846

4.8
4.9

As of September 30, 2019:¥ 679,367 million

As of March 31, 2019:¥ 654,800 million

2. Dividends
Dividend per Share

Record Date
For the year ended
March 31, 2019
For the year ending
March 31, 2020
For the year ending
March 31, 2020
(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

－

62.50

62.50

－

65.00

65.00

3. Forecast of consolidated financial results for the year ending March 31, 2020
(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, 2020

Millions of yen% change

Millions of yen% change

Millions of yen% changeYen

1,690,000

3.7

98,0004.4

65,0004.7

149.42

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 September 30, 2019:
435,087,405 shares
As of March 31, 2019:
435,062,983 shares(b) Number of treasury shares
As of September 30, 2019:37,425 shares
As of March 31, 2019:37,425 shares(c) Weighted-average number of shares
For the six months ended September 30, 2019:
435,033,699 shares
For the six months ended September 30, 2018:
435,006,128 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. Consolidated Statements of Changes in Net Assets ……………………………………………………

8

4. Note on Going Concern………………...……………………...……………………...…………………

10

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

10

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

10

7. Segment Information ……………………………………...……………………………..……………… 11

II. Attachment
Consolidated Financial Results for the Six Months Ended September 30, 2019 and Sony Life’s MCEV
as of September 30, 2019…………………………………………

14* The conference call for explaining the Sony Financial Group financial results will be held at 16:30 (Tokyo),
November 12, 2019. Please note that our conference call will be held only in Japanese.
We will upload the presentation materials with speech text on November 12, 2019 after 15:00, the translation of
the conference call (audio) on November 13 and the Q&A summary (text) at a later date on Earnings Releases
and Presentation Materials page on our website:
https://www.sonyfh.co.jp/en/financial_info/results/index.html* On November 12, 2019, Sony Financial Holdings Inc.’s (SFH’s) significant subsidiariesーSony Life InsuranceCo., Ltd. (Sony Life), Sony Assurance Inc. (Sony Assurance) and Sony Bank Inc. (Sony Bank)ーwill announce
their financial results for the six months ended September 30, 2019. 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, 2019

As of September 30, 2019¥¥

AssetsCash and due from banks

415,894

449,555

Call loans and bills bought

93,70087,000

Monetary claims purchased

4,916

3,955

291,324

291,872

Securities

10,373,188

10,926,860

Loans

Money held in trust

1,942,546

2,043,079

Tangible fixed assets

104,128

104,905

Intangible fixed assets

43,90945,723Due from reinsurers

1,341

852

Foreign exchanges

8,471

9,377

159,361

150,495

Net defined benefit asset

3,476

3,751

Deferred tax assets

27,55627,555

Other assets

Reserve for possible loan losses(1,602)

Total Assets

¥

- 2 -

13,468,215(1,643)¥14,143,342

(Millions of yen)
As of March 31, 2019

As of September 30, 2019¥¥

Liabilities
Policy reserves and others
Reserve for outstanding claims

9,479,071

9,900,691

78,28580,6039,396,241

9,815,653

4,544

4,434

Due to agencies

2,073

2,110

Due to reinsurers

5,769

4,897

Policy reserves
Reserve for policyholders’ dividends

Deposits

2,302,313

2,365,410

Call money and bills sold

130,611

195,713

Borrowed money

203,871

203,964

Foreign exchanges

244

639

Bonds payable

20,00020,000

Other liabilities

578,477

678,026

Reserve for employees’ bonuses

4,377

3,992

Net defined benefit liability

34,081

34,589Reserve under the special laws

50,343

51,572

Reserve for price fluctuations

50,343

51,572

Deferred tax liabilities

24

12

Deferred tax liabilities on land revaluation

109

109

12,811,368

13,461,730

Common stock

19,96319,994

Capital surplus

191,193

191,224

Retained earnings

319,886

333,148

(55)

(55)

530,987544,312

128,800

139,857

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(1,077)(1,169)Land revaluation, net of taxes(2,439)(2,439)Remeasurements of defined benefit plans, net of taxes(1,470)(1,194)

Total accumulated other comprehensive income

123,812135,054

Subscription rights to shares

149

181

Non-controlling interests

1,896

2,063

656,846

681,612

Total Net Assets
Total Liabilities and Net Assets

¥

- 3 -

13,468,215¥

14,143,342

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
Income from insurance premiums
Insurance premiums
Ceded reinsurance commissions
Investment income

For the six months ended
September 30, 2018

For the six months ended
September 30, 2019¥¥

860,895

894,498

777,970

805,727

540,924

664,570

539,796

663,440

1,128

1,129

231,430

134,155

Interest income and dividends

81,806

88,105

Income from money held in trusts, net

2,246

2,282

－

70

Gains on sale of securities

3,316

2,317

Foreign exchange gains, net

21,398－－

1

122,662

41,377

Gains on trading securities, net

Other investment income
Gains on separate accounts, net
Other ordinary income
Ordinary Revenues from the Non-life Insurance Business
Underwriting income
Net premiums written
Interest and dividends on deposits of premiums

5,614

7,000

57,76160,67156,552

59,34556,51959,307

32

38

1,172

1,302

Interest income and dividends

678

668

Gains on sale of securities

526

672

Transfer to interest and dividends on deposits of premiums

(32)

(38)

36

23

21,911

24,443

15,433

16,934

Investment income

Other ordinary income
Ordinary Revenues from the Banking Business
Interest income
Interest income on loans

8,627

9,170

Interest income and dividends on securities

6,771

7,726

Interest income on call loans and bills bought00Interest income on deposits with banks

31

31

Other interest income

35Fees and commissions

4,042

5,508

Other operating income

2,133

1,884

Other ordinary income

301

116

3,251

3,656

3,251

3,656

Other
Other ordinary income(Continued)- 4 -(Millions of yen)

Ordinary Expenses
Ordinary Expenses from the Life Insurance Business

For the six months ended
September 30, 2018

For the six months ended
September 30, 2019¥¥813,666

834,802741,913758,168

200,482

222,613

Insurance claims

45,22247,081

Annuity payments

6,347

7,174

Insurance benefits

43,07353,625

Surrender payments

98,856108,017

Other payments

1,928

1,820

Reinsurance premiums

5,054

4,894

426,877

415,119

3,726

1,834

423,150

413,28400Investment expenses

26,65422,024

Interest expenses

577

2,210

Losses on trading securities, net

11－

Losses on sale of securities

34－

Losses on valuation of securities

4,026

2,991

Losses on derivatives, net

19,7044,251

Foreign exchange losses, net－

10,552

Provision for reserve for possible loan losses

1

26

Insurance claims and other payments

Provision for policy reserves and others
Provision for reserve for outstanding claims
Provision for policy reserves
Interest portion of reserve for policyholders’ dividends

Depreciation of real estate for rent and others

800

811

1,497

1,180

Operating expenses

71,372

78,468Other ordinary expenses

16,526

19,942Other investment expenses

Ordinary Expenses from the Non-life Insurance Business

51,92954,487

Underwriting expenses

38,73340,274

Net losses paid

26,83028,821

Loss adjustment expenses

4,031

4,269

Net commission and brokerage fees

625

573

Provision for reserve for outstanding losses and claims

1,782

483

Provision for underwriting reserves

5,463

6,127

1

0

Losses on sale of securities

0－

Other investment expenses

1

0

13,193

14,2091

3

Investment expenses

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

Ordinary Expenses from the Banking Business

For the six months ended
September 30, 2018

For the six months ended
September 30, 2019¥¥

Interest expenses

16,177

17,957

3,993

4,813

3,139

3,923

Interest expenses on call money and bills sold3

181

Interest on payables under repurchase agreements

64

171

Interest on borrowed money

00Interest expenses on bonds

6

6

775

525

3

4

Fees and commissions

2,778

3,378

Other operating expenses

106

1

9,091

9,706

207

57

3,646

4,188

3,646

4,188

47,22859,6960

0Interest expenses on deposits

Interest expenses on interest rate swaps
Other interest expenses

General and administrative expenses
Other ordinary expenses
Other
Other ordinary expenses
Ordinary Profit
Extraordinary Gains
Gains on disposal of fixed assets

0

0

1,115

1,544

Losses on disposal of fixed assets

51

51

Impairment losses

10

15

Extraordinary Losses

Provision for reserve under the special laws

1,053

1,228

Provision for reserve for price fluctuations

1,053

1,228

－

249

62

128

Income Before Income Taxes

46,05258,023

Income Taxes - Current

14,65921,267

Income Taxes - Deferred(498)(3,860)Total Income Taxes

14,16017,406

Profit31,891

40,616120

165

OthersProvision for Reserve for Policyholders’ Dividends

Profit Attributable to Non-controlling Interests
Profit Attributable to Owners of the Parent

¥

- 6 -

31,770¥40,450(Consolidated Statements of Comprehensive Income)(Millions of yen)

Profit

For the six months ended
September 30, 2018

For the six months ended
September 30, 2019¥¥

31,891

40,616

Other comprehensive income
Net unrealized gains (losses) on available-for-sale securities, netof taxes(13,192)

10,846

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

236

(92)

Remeasurements of defined benefit plans, net of taxes

269

278

Share of other comprehensive income of affiliates accounted forusing equity method－

210(12,686)

11,243

Total other comprehensive income
Comprehensive income¥

19,205¥51,859(Details)
Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests- 7 -19,083

51,692122

166

3. Consolidated Statements of Changes in Net Assets
For the six months ended September 30, 2018
(Millions of yen)
Shareholders’ Equity
Common stock

Balance at the beginning of
the period

Capital surplus

Retained earnings

Treasury stock¥ 19,927¥ 191,157¥ 283,911

Issuance of new shares

35

35

Dividends from surplus－¥

Total shareholders’ equity(55)¥ 494,941

－

－

71

－

(26,099)－(26,099)－－

31,770－31,770

－

－

－

－

－

35

35

5,671

－

5,742

¥ 19,963¥ 191,193¥ 289,582(55)¥ 500,684

Changes during the period

Profit attributable toowners of the parent
Net changes of items
other than shareholders’equityTotal changes during theperiodBalance at the end of theperiod¥Total accumulated other comprehensive income
Net unrealized Net deferred gains
Total accumulated Subscription rights Non-controlling
gains (losses) on(losses) on
Remeasurements
Land revaluation,otherto shares
interests
available-for-salehedgingof defined benefit
net of taxes
comprehensive
securities,
instruments,
plans, net of taxes
incomenet of taxes
net of taxes

Balance at the beginning of
the period¥ 133,991¥(902) ¥

(2,439) ¥(1,929) ¥ 128,719

¥

97

¥

Total net assets

1,648¥ 625,406

Changes during the period
Issuance of new shares

－

－

－

－

－

－

－

71

Dividends from surplus

－

－

－

－

－

－

－

(26,099)

－

－

－

－

－

－

－

31,770(13,192)

236

－

268

(12,687)20

122(12,545)(13,192)

236

－

268

(12,687)20

122(6,802)(666) ¥

(2,439) ¥1,770¥ 618,604

Profit attributable toowners of the parent
Net changes of items
other than shareholders’equityTotal changes during theperiodBalance at the end of theperiod¥ 120,798

¥

- 8 -

(1,660) ¥ 116,032

¥

117

¥

For the six months ended September 30, 2019
(Millions of yen)
Shareholders’ Equity
Common stock

Balance at the beginning of
the period

Capital surplus

Retained earnings

Treasury stock¥ 19,963¥ 191,193¥ 319,886

Issuance of new shares

31

31

Dividends from surplus－¥

Total shareholders’ equity(55)¥ 530,987

－

－

62

－

(27,189)－(27,189)－－

40,450－40,450

－

－

－

－

－

31

31

13,261－

13,324¥ 19,994¥ 191,224¥ 333,148(55)¥ 544,312

Non-controllinginterests

Total net assets

Changes during the period

Profit attributable toowners of the parent
Net changes of items
other than shareholders’equityTotal changes during theperiodBalance at the end of theperiod¥Total accumulated other comprehensive income
Net unrealized Net deferred gains
Total accumulated Subscription
gains (losses) on(losses) on
Remeasurements
Land revaluation,otherrights to sharesavailable-for-salehedgingof defined benefit
net of taxes
comprehensive
securities,
instruments,
plans, net of taxes
incomenet of taxes
net of taxes

Balance at the beginning of
the period¥ 128,800 ¥(1,077) ¥(2,439) ¥(1,470) ¥ 123,812 ¥149 ¥1,896 ¥

656,846

Changes during the period
Issuance of new shares

－

－

－

－

－

－

－

62

Dividends from surplus

－

－

－

－

－

－

－

(27,189)

－

－

－

－

－

－

－

40,45011,057

(92)

－

276

11,24132

166

11,441

11,057

(92)

－

276

11,24132

166

24,765¥ 139,857 ¥(1,169) ¥(2,439) ¥181 ¥2,063 ¥

681,612

Profit attributable toowners of the parent
Net changes of items
other than shareholders’equityTotal changes during theperiodBalance at the end of theperiod- 9 -(1,194) ¥ 135,054 ¥4. Note on Going Concern
Not applicable.

5. Material Changes in Stockholders’ Equity
Not applicable.

6. Changes in Significant Subsidiaries during the Period
Not applicable.
Although specified subsidiaries have not changed, SmartLink Network Europe B.V., a subsidiary that is a credit card settlement
service company, was established and entered the scope of consolidation in the first half of the fiscal year ending March 31,
2020. The company’s results are included in the “banking business” category in the consolidated statements of income.

- 10 -

7. Segment Information(1) Outline of reportable segments
The Sony Financial Group consists of three reportable segments: the life insurance business, the non-life insurance businessand the banking business.
●The life insurance business consists of Sony Life Insurance Co., Ltd., AEGON Sony Life Insurance Co., Ltd., and SA
Reinsurance Ltd.
●The non-life insurance business consists of Sony Assurance Inc.
●The banking business consists of Sony Bank Inc., Sony Payment Services Inc., SmartLink Network Hong Kong Limited
and SmartLink Network Europe B.V..
(2) Segment information by reportable segment
For the six months ended September 30, 2018
Millions of yen
Non-life
insurancebusiness

Life insurance
business
Ordinary revenues
External customers
Intersegment
Total
Segment profit
Segment assets
OthersDepreciation
Interest income and dividends
Interest expenses
Equity in earnings (losses) ofaffiliates
Investments in affiliates
Increase in tangible fixed assets
and intangible fixed assets¥

777,970
1,402
779,373¥
37,421
10,068,492

¥

¥

¥

57,761
0
57,7625,449
210,016

Bankingbusiness

Total¥

21,911
126
22,038¥4,669
2,795,224

Other

¥

857,6431,530
859,173¥
47,54013,073,734

¥

¥

Total

3,251
－
3,251
(394)
21,995¥860,895
1,530
862,425¥
47,145
13,095,729

3,775
81,806
577

1,211
679
－

1,253
15,433
4,032

6,239
97,919
4,610

306
1
234

6,546
97,920
4,845

(400)

－

－

(400)

－

(400)

11,919－－11,919－11,919

2,763

¥

2,674

¥

1,476

¥

6,913

¥

79

¥

6,992

(Note) “Other” consists of the nursing care business and venture capital operations, which is not a reportable segment.
For the six months ended September 30, 2019
Millions of yen
Non-life
insurancebusiness

Life insurance
business
Ordinary revenues
External customers
Intersegment
Total
Segment profit
Segment assets
OthersDepreciation
Interest income and dividends
Interest expenses
Equity in earnings (losses) ofaffiliates
Investments in affiliates
Increase in tangible fixed assets
and intangible fixed assets¥

805,727
1,225
806,953¥
48,742
10,897,894

¥

¥

¥

60,671060,672
5,770
225,313

Bankingbusiness

Total¥

24,443
137
24,580¥5,627
3,025,065

Other

¥

890,8421,363
892,206¥
60,14014,148,273

¥

¥

Total

3,656
－
3,656
(532)
24,758¥894,498
1,363
895,862¥
59,607
14,173,031

4,432
88,105
2,210

1,193
668
－

1,336
16,934
4,851

6,962
105,707
7,061

335
1
282

7,298
105,709
7,344

64

－

－

64

－

64

13,994－－

13,994－

13,994

5,259

¥

2,026

¥

851

¥

8,137

¥

1,763

(Note) “Other” consists of the nursing care business and venture capital operations, which is not a reportable segment.

- 11 -¥

9,901

(3) Reconciliations of the totals of each segment item to corresponding enterprise amounts
Millions of yen
For the six months ended
September 30, 2018
Totals of reportable segments¥

For the six months ended
September 30, 2019

859,173

Other¥

892,206

3,251(1,530)Adjustments for intersegment transactions¥

Ordinary revenues in statement of income

3,656(1,363)860,895¥

894,498

Millions of yen
For the six months ended
September 30, 2018
Totals of reportable segments¥

For the six months ended
September 30, 201947,540Other¥60,140(394)
82

Amount not allocated to reportable segments¥

Ordinary profit in statement of income

(532)
88

47,228¥59,696

Millions of yen
For the six months ended
September 30, 2018

For the six months ended
September 30, 2019¥¥

Totals of reportable segments

13,073,734

14,148,273

Other
Adjustments for intersegment transactions

21,995(66,917)24,758(73,676)

Amount not allocated to reportable segments

33,20543,987¥

Assets in balance sheets

13,062,017¥

14,143,342

Millions of yen
For the six months ended
September 30, 2018
Total
Depreciation¥

Interest income and6,239 ¥

Other

Adjustments

306

¥

20

For the six months ended
September 30, 2019
Consolidated
financialstatements¥

6,567 ¥

Total

Other

6,962 ¥

Adjustments

335

¥

24

Consolidated
financialstatements
¥

7,323

97,9191(0)

97,920105,7071(0)

105,709

Interest expenses

4,610

234

(39)

4,806

7,061

282

(37)

7,306

Equity in earnings(losses) of affiliates

(400)

－

－

(400)

64

－

－

64

11,919－－11,91913,994－－

13,994

6,913 ¥

79

7,017 ¥

8,137 ¥

dividends

Investments in affiliates
Increase in tangible
fixed assets and

¥

¥

24

¥

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

- 12 -

1,763

¥

8

¥

9,910

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.
SmartLink Network Europe B.V.**
Sony Lifecare Inc.
Lifecare Design Inc.
Proud Life Inc.
Sony Financial Ventures Inc.**
SFV・GB L.P.**
Affiliated companies accounted for under the equity method:
AEGON Sony Life Insurance Co., Ltd.
SA Reinsurance Ltd.
** Sony Financial Ventures Inc. is included in the scope of consolidation from the second quarter ended September 30, 2018.
SFV・GB L.P. is included in the scope of consolidation from the fourth quarter ended March 31, 2019.
SmartLink Network Europe B.V. is included in the scope of consolidation from the second quarter ended September 30, 2019.

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.

- 13 -

II. Attachment
Content of Presentation Material
Consolidated Financial Results for the Six Months Ended September 30, 2019 andSony Life’s MCEV as of September 30, 2019・ Consolidated Operating Results for the Six Months Ended September 30, 2019 (FY19.1H)……

3・ Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2020 (FY19)……

18

・ Sony Life’s MCEV as of September 30, 2019……………………………………………………………

20

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

23- 14 -

【Presentation Material】

Consolidated Financial Results
for the Six Months
Ended September 30, 2019
andSony Lifeʼs MCEV
as of September 30, 2019Sony Financial Holdings Inc.
November 12, 2019

AGENDA
Consolidated Operating Results for the Six Months Ended September 30, 2019
(FY19.1H)

P. 3

Forecast of Consolidated Financial Results for the Fiscal Year Ending
March 31, 2020 (FY2019)P. 18

Sony Lifeʼs MCEV as of September 30, 2019

P. 20

Appendix

P. 23

Disclaimers:
This presentation material contains statements 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. 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. Forwardlooking 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 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, andactual business results may vary substantially from 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 inthis presentation 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 or commitment
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.
Copyright © Sony Financial Holdings Inc. All rights reserved.

2

Consolidated Operating Results
for the Six Months Ended
September 30, 2019
(FY19.1H)

Highlights of Consolidated Financial Results In each of the three main businesses, ordinary revenues and ordinary profit

for FY19.1H outpaced our expectations, and consolidated operating
performance is progressing ahead of our forecasts.

 At Sony Life, lower sales of family income insurance in FY19.1H caused thenew policy amount to decrease year on year. Insurance acquisition costs fell
mainly due to the lower new policy amount, leading to a year-on-yearincrease in ordinary profit.

In FY19.2Q (3M), new business value and the new business margin were
down from FY19.1Q (3M), mainly owing to a decline in U.S. dollar interest
rates and changes in the product mix.
In FY19.2H, we expect new business value to be higher than in FY19.1H,
thanks in part to contributions from corporate products, on which werecommenced sales in August.
 At Sony Assurance, sales of automobile insurance were robust.
 At Sony Bank, mortgage loans drove performance.
Copyright © Sony Financial Holdings Inc. All rights reserved.

4

Highlights of Consolidated Operating Performance◆ Ordinary Revenues︓
Increased 3.9% year on year, to ¥894.4 billion, owing to increases in ordinary revenues fromall the businesses: life insurance, non-life insurance and banking businesses.
◆ Ordinary Profit︓
Increased 26.4% year on year, to ¥59.6 billion, owing to increases in ordinary profit from all
the businesses mentioned above.

Ordinary Profit

Ordinary Revenues

9,000

860.8

+3.9%

894.4

8,000

47.2

500

＋26.4%

59.6

400

7,000
6,000

300

5,000
4,000

200

3,000
2,000
(JPY bn)
1,000

100(JPY bn)00

FY18.1H

FY19.1H

FY18.1H

FY19.1H

Copyright © Sony Financial Holdings Inc. All rights reserved.

5

Highlights of Operating Performance : Sony Life (Non-consolidated)◆ Ordinary Revenues︓
Increased 3.5% year on year, to ¥806.8 billion, due to higher insurance premium revenue,
mainly from single premiums insurance, despite a decrease in net gains on investments in theseparate account.
◆ Ordinary Profit︓
Rose 29.0% year on year, to ¥48.6 billion, as costs related to the acquisition of new policies
fell due to a decline in the new policy amount and profit rose in tandem with expansion of thepolicy amount in force.

Ordinary Profit

Ordinary Revenues
779.2

＋3.5%

806.8

500
400

＋29.0%

48.6

37.7

300
200
100
(JPY bn)(JPY bn)0

FY18.1H

FY19.1H

FY18.1H

FY19.1H

Copyright © Sony Financial Holdings Inc. All rights reserved.

6

Operating Performance : Sony Life (Non-consolidated) (1)◆ New Policy Amount︓
Decreased due to lower sales of family income insurance.
◆ Annualized Premiums from New Policies︓
Increased due to a favorable sales of U.S. dollar-denominated insurance despite a lower sales ofterm life insurance and variable life insurance for corporate customers.
Annualized Premiums from New Policies

Number and Amount of New Policies（Individual life insurance + Individual annuities）（Individual life insurance + Individual annuities）

Annualized premiums from new policies
Of which, third-sector

New policy amount
Number of new policies (Thousands of policies)

293
240

+6.8%

313

＋1.8%

32.3

3.15
2.53

2.23

(19.7%)(JPY bn)(JPY tn)

FY17.1H

38.6

37.9

FY18.1H

5.9
FY17.1H

FY19.1H

7.3(14.6%)

FY18.1H

6.2
FY19.1H

Copyright © Sony Financial Holdings Inc. All rights reserved.

7

Operating Performance : Sony Life (Non-consolidated) (2)
Number and Amount of Policies in Force（Individual life insurance + Individual annuities）
Policy amount in force
Number of policies in force (Millions of policies)

7.69

7.84

48.5

49.5

+1.9%

Annualized Premiums from Insurance in Force（Individual life insurance + Individual annuities）

Annualized premiums from insurance in force
Of which, third-sector

8.00

864.6

889.3

194.9

197.5

Sep. 18

Mar. 19

903.2
+1.6%

50.3
+1.5%

(JPY bn)(JPY tn)

Sep. 18

Mar. 19

Sep. 19

+1.0%

199.4

Sep. 19

Copyright © Sony Financial Holdings Inc. All rights reserved.

8

Operating Performance : Sony Life (Non-consolidated) (3)◆ Lapse and Surrender Rate︓
Down due to a decrease in cancellation of policies, with certain customers cancelling existing
policies and, taking out new family income insurance and other policies, as premiums wererevised in line with revision to the standard mortality tables in February 2018.

Lapse and Surrender Rate*（Individual life insurance + Individual annuities）
Annual

1H

6.06
4.97
3.36

(1.11pt)

2.25

1.93

（%）

FY2017FY2018FY2019*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.

9

Copyright © Sony Financial Holdings Inc. All rights reserved.

Operating Performance : Sony Life (Non-consolidated) (4)◆ Core Profit︓
Remained essentially flat year on year due to an increase in the provision of policy reserves
for minimum guarantees for variable life insurance despite an increase in profit owing to
growing policy amount in force.

Core Profit and Adjusted Core Profit
Core profit

Adjusted core profit

57.8

600

(0.6%)

49.6

43.8

57.5
52.6

FY17.1H

FY18.1H

FY19.1H

9.3

8.7

9.0

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

(4.0)

(0.4)

(4.1)

Adjusted core profit (**)

38.6

49.6

52.6

(JPY bn)
Positive spread

+6.1%

38.6

◆ Details of core profit

300*Provision of policy reserves for minimum guarantees for variable life insurance is
described as negative amount.
**Adjusted core profit = (Core profit) ‒ (Positive spread) ‒ (Provision of policy reserves
for minimum guarantees for variable life insurance)(JPY bn)0

FY17.1H

FY18.1H

FY19.1H

Copyright © Sony Financial Holdings Inc. All rights reserved.

10

Operating Performance : Sony Life (Non-consolidated) (5)◆ Ordinary Profit︓
Increased due to an increase in gains on hedges of variable life insurance in addition to a factor
in core profit.
Core Profit and Ordinary Profit
Core profit

Ordinary profit

57.8

600

43.8
400

(0.6%)+29.0%

57.5
48.6

37.7

26.0
200

(JPY bn)0

FY17.1H

FY18.1H

FY19.1H◆ Difference from core profit
FY17.1H

FY18.1H

FY19.1HCore profit

43.8

57.8

57.5

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

(5.6)

(3.3)

(0.4)

Gains (losses) on hedges of variable
life insurance (**)

(8.5)

(12.3)(3.6)

Provision of contingency reserve (***)

(3.6)

(4.4)

(4.6)

Others

(0.0)

(0.0)

(0.0)

Ordinary profit

26.0

37.7

48.6

(JPY bn)*Capital gains (losses) exclude gains or losses on hedges of variable life insurance.
** Gains (losses) on hedges of variable life insurance offset the impact of market
fluctuations on provision of policy reserves for minimum guarantees for variable life
insurance on the previous page.
*** Provision of contingency reserve is described as negative amount.

Copyright © Sony Financial Holdings Inc. All rights reserved.

11

Operating Performance : Sony Life (Non-consolidated) (6)

Number of Lifeplanner Sales Employees
(28)

5,142

5,135

5,147

5,106

5,164

5,119

5,116
+3

（Number）

Mar. 18

Jun. 18

Sep. 18

Dec. 18

Mar. 19

Jun. 19

Sep. 19

Copyright © Sony Financial Holdings Inc. All rights reserved.

12

Highlights of Operating Performance : Sony Assurance◆ Ordinary Revenues and Ordinary Profit :Ordinary revenues expanded 5.0% year on year, to ¥60.6 billion, and ordinary profit
increased 5.9% year on year, to ¥5.7 billion, due mainly to an increase in net premiums
written for mainstay automobile insurance.

Ordinary Profit

Ordinary Revenues
60.6

＋5.0%

57.7

5.7

＋5.9%

5.4

(JPY bn)(JPY bn)

FY18.1H

FY19.1H

FY18.1H

FY19.1H

Copyright © Sony Financial Holdings Inc. All rights reserved.

13

Operating Performance : Sony Assurance (1)◆ Net Premium Written︓Increased due to stable sales of mainstay automobile insurance.
Ordinary Profit andAdjusted Ordinary Profit

Net Premium Written
Voluntary automobile insurance
Others600

53.7

Ordinary profit

Personal accident insurance

56.5

Adjusted ordinary profit

7.6

7.2

59.3
6.2

＋4.9%

＋6.1%

5.7

5.4

4.5

＋5.9%

400

xx
200

(JPY bn)0

FY17.1H

FY18.1H

FY19.1H*Adjusted ordinary profit = Ordinary profit + Provision for catastrophe reserve(JPY bn)（Reference) Provision for catastrophe reserve

0

FY17.1H

FY18.1H

FY19.1H

Note: Most of personal accident insurance is medical insurance.

（JPY bn） FY17.1H

FY18.1H

FY19.1H

1.7

1.7

1.9

Provision for catastrophe reserve

Note: Provision for catastrophe reserve is described as positive amount.
Copyright © Sony Financial Holdings Inc. All rights reserved.

14

Operating Performance : Sony Assurance (2)◆ Sum of Two Ratios︓
Remained essentially flat due to a decline in E.I. loss ratio, driven mainly by a car accident ratio
despite an increase in expense ratio.
Sum of Two Ratios（E.I. Loss Ratio ＋ Net Expense Ratio）
E.I. loss ratio

Net loss ratio

Net expense ratio

86.2

86.3

86.2

Combines Ratio（Net Loss ratio＋ Net Expense Ratio）

79.8(0.1pt)

61.2

59.6

(0.6pt)81.4

79.7＋1.7pt

60.6

53.2

54.6

55.8

＋1.2pt+0.5pt+0.5pt

26.6

25.1

25.6

FY17.1H

FY18.1H

FY19.1H（%）

Net expense ratio

Notes:
E.I. loss ratio = (Net losses paid + Provision for reserve for outstanding losses
and claims+ Loss adjustment expenses) / Earned premiums x100
[Earthquake insurance and compulsory automobile liability insurance are excluded.]

（%）

26.6

25.1

25.6

FY17.1H

FY18.1H

FY19.1H

Notes:Net loss ratio = (Net losses paid + Loss adjustment expenses) /Net premiums written x100
Net expense ratio = Expenses related to underwriting / Net premiums written x100
Copyright © Sony Financial Holdings Inc. All rights reserved.

15

Highlights of Operating Performance : Sony Bank (Consolidated)◆ Ordinary Revenues and Ordinary Profit︓
Ordinary revenues expanded 11.5% year on year, to ¥24.5 billion, and ordinary profit was up
20.6% year on year, to ¥5.6 billion, due to increases in such income as interest on loans in linewith a growing balance of mortgage loans and higher interest income on investment securities.
Ordinary Profit

Ordinary Revenues

22.0＋11.5%＋20.6%

24.5

5.6

4.6

(JPY bn)(JPY bn)

FY18.1H

FY19.1H

FY18.1H

FY19.1H

Copyright © Sony Financial Holdings Inc. All rights reserved.

16

Operating Performance : Sony Bank (Non-consolidated)◆ Customer Assets
・Yen Deposits︓
Increased due to an increase in newly accumulated funds via the increased number of accounts.
・Foreign Currency Deposits︓
Increased due mainly to an increase in U.S. dollar deposits in line with appreciation of Japanese yen.
◆ Loans Outstanding・Expanded due to a steady increase in mortgage loans.
Loans Outstanding

Customer Assets
Investment trusts
Foreign currency deposit
Yen deposits
Number of accounts (Millions of accounts)
1.52
+0.04

30,00025,0001.47

1.35
2,343.0
123.7

20,000404.6

2,483.3
124.3

419.6

150

2,553.0
123.6

+69.7

449.3

1,596.3

1301,814.7

1,939.3

1,979.9

Others1,839.3

1,744.1
53.7

70.7

48.4*

*Corporate loans+95.2

of ¥30.6 billion,
Card loans of¥17.7 billion.

110
90

15,00010,000Mortgage loans

1,525.570

1,690.3

1,790.950

5,000(JPY bn)(JPY bn)
030Mar. 18

Mar. 19

Sep. 19

Mar. 18

Mar. 19

Sep. 19

Copyright © Sony Financial Holdings Inc. All rights reserved.

17

Forecast of Consolidated Financial
Results for the Fiscal Year Ending
March 31, 2020
(FY2019)

Forecast of Consolidated Financial Results for FY2019
Forecast of consolidated financial results for FY2019 is unchanged from the forecast
announced on April 26, 2019.
We maintain our full-year forecasts, taking into consideration the business environment from FY19.2H
onward, although ordinary revenues and ordinary profit exceeded our expectation in FY19.1H for
all three core businesses.
(JPY bn)
Ordinary revenues

FY2018（Actual）

FY2019（Forecast）

Change1,629.1

1,690.0+3.7%

1,464.3

1,520.5+3.8%

Non-life insurance business

115.1

121.2

+5.3%

Banking business

46.0

49.3

+7.1%

93.8

98.0

+4.4%

Life insurance business

78.2

84.2

+7.7%

Non-life insurance business

6.8

7.0

+1.5%

Banking business

9.5

8.6

(10.4%)

62.0

65.0

+4.7%

Life insurance business

Ordinary profit

Profit attributable to ownersof the parents※ As we announced on June 28, 2019, Sony Life is expected to acquire shares in two joint ventures,
AEGON Sony Life Insurance and SA Reinsurance. As a result, they will be converted to wholly owned
subsidiaries of SFH and Sony Life. The above forecast of financial results includes the impact of this conversion,
which is expected to be slight.

Copyright © Sony Financial Holdings Inc. All rights reserved.

19

Sony Lifeʼs MCEV
as of September 30, 2019

Some parts of the calculations of MCEV adopted simplified method expect for those as of March 31, 2019.
Please keep in mind that the validity of these calculations has not been verified by outside specialists.

Sony Lifeʼs MCEV
◆ Reasons for Changes in MCEV
・MCEV as of September 30, 2019 increased ¥40.6 billion from June 30, 2019, due mainly to a change
in interest rates and acquisition of new policies.
◆ New Business Value / New Business Margin
・New business margin for FY19.2Q (3M) was down 1.6pt from FY19.1Q (3M), mainly owing to
a decline in U.S. dollar interest rates and changes in the product mix.
・New business value for FY19.2Q (3M) was ¥14.8 billion, due mainly to a decline in new businessmargin.

（JPY bn）

MCEV

Mar. 19

Jun. 19

Sep. 19

ChangefromMar. 19

ChangefromJun. 19

1,720.2

1,651.2

1,691.9(28.3)+40.6

Adjusted net worth

2,195.7

2,432.0

2,498.9+303.1+66.9

Value of existing business(475.5)(780.7)(807.0)(331.5)(26.3)（JPY bn）

FY18.4Q(3M)

FY19.1Q(3M)

FY19.2Q(3M)

FY19.1H(6M)

New business value

23.1

17.0

14.8

31.8

New business margin

5.0%

5.4%

3.8％

4.5％

Note: Calculated MCEV as of June 30, 2019 onward by using mainly updated economic assumptions and lapse and surrender rate from March 31, 2019.
*Please refer to page 40-43 for trend on bond yields and yield curves.

Copyright © Sony Financial Holdings Inc. All rights reserved.

21

Sony Lifeʼs MCEV: Breakdown of MCEV for FY19.1H (6M)

Numerator of core ROEV:+39.4
1,720.2(32.2)+31.8

MCEV
as of Mar. 19(after dividends paid)(35.5)

1,691.9
Assumptionchanges

MCEV
as of Mar. 19

New business
value

Dividend
payments toshareholder(JPY bn)

Expected existing
business contribution

1,688.0+7.5

MCEV
as of Sep. 19

Note: Details on assumption changes : Insurance-related assumption changes:+¥13.9 billion,
economic variances changes (included interest rate fluctuation): (49.5) billion.

Copyright © Sony Financial Holdings Inc. All rights reserved.

22◆Sony Financial Group
Detail of Consolidated Adjusted ROE
Detail of Consolidated Adjusted Profit andConsolidated Adjusted Capital
Calculation of Consolidated Adjusted ROE
Update of Major KPIs
Financial Soundness
Results of Cross-selling

Appendix◆Sony Life
Product Portfolio
Asset Management
General Account Assets
Interest Income and Dividends (Details)
Capital Gains (Losses)
Quarterly Trend on New Policy Amount
Quarterly Trend on Annualized Premiums from New Policies
Quarterly Trend on New Business Value
ESR
Operating Performance : AEGON Sony Life Insurance
Trend on JGB Yields (Par rate)
Trend on Risk-free Rate (Japanese yen/Par rate)
Trend on U.S. Dollar Bonds Yields (Par rate)
Trend on Risk-free Rate (U.S. Dollar /Par rate)◆Financial Results of Each Group Company（Summary Financial Statements, etc.）
Consolidated/Sony Life/Sony Assurance/Sony BankDetail of Consolidated Adjusted ROE

FY2018(12M)

FY18.1H(6M)

FY19.1H(6M)

Consolidated Adjusted ROE

6.7%

3.3%

2.7%

(Sony Life) Core ROEV

6.4%

3.1%

2.3%

(Sony Assurance) Adjusted ROE

15.2％

10.5%

10.2%

(Sony Bank) ROE

7.3%

3.6%

4.2%

Copyright © Sony Financial Holdings Inc. All rights reserved.

24

Detail of Consolidated Adjusted Profit and Consolidated Adjusted Capital◆ Adjusted capital (Denominator）◆ Adjusted profit（Numerator)
Sony Financial Group（consolidated） （JPY bn）

FY2018

FY18.1H

FY19.1H

120.4

60.0

48.6

FY2018

FY18.1H

FY19.1H

New business value *

91.3

44.5

31.8

Expected existing business
contribution *

15.0

7.1

7.5

Adjusted profit

106.4

51.7

39.4

FY2018

FY18.1H

FY19.1H

Net income

4.9

3.8

4.1

Provision amount forcatastrophe reserve (after tax)

2.6

1.2

1.3

Provision amount for reservefor price fluctuations(after tax)

0.0

0.0

0.0

Adjusted profit(consolidated)
Sony Life(non-consolidated)（JPY bn）

Sony Assurance（JPY bn）

Adjusted profit
Sony Bank(consolidated)（JPY bn）

Profit attributable to ownersof the parent

7.6

5.1

5.4

FY2018

FY18.1H

FY19.1H

6.3

3.0

3.7

Sony Financial Group（consolidated）（JPY bn）

FY2018

FY18.1H

FY19.1H

Adjusted capital(consolidated)

1,801.8

1,797.7

1,833.7

FY2018

FY18.1H

FY19.1H

1,633.1

1,633.1

1,720.2

Sony Life(non-consolidated)（JPY bn）①MCEV as of the beginning of
the fiscal year

26.2

26.2

32.2

③MCEV as of the end of theperiod *1,720.2

1,715.2

1,691.9

Adjusted capital（①−②＋③）/２

1,663.5

1,661.0

1,689.9

FY2018

FY18.1H

FY19.1H

34.7

33.9

36.3

②Catastrophe reserve

17.7

16.3

19.1

③Reserve for price fluctuations

0.1

0.1

0.1

Adjusted capital（The averageamount of ①＋②＋③）

50.5

49.4

54.1

FY2018

FY18.1H

FY19.1H

87.6

87.2

89.6

②Dividends paid

Sony Assurance①Net assets

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

Adjusted capital（The averageamount of net assets during
the period）* Please keep in mind that the validity of these calculations has not been verified by outside specialists for the figures for FY18.1H and FY19.1H.
Copyright © Sony Financial Holdings Inc. All rights reserved.

25

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 ②
amount for reserve for pricefluctuations during the fiscal
year, in each case 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,
in each case after taxes ⑤

＋

＋

①

＋

④

Sony Bank
ROE
Profit (loss) attributable toowners of the parent③

The average amount of net
assets during the fiscal year⑥

* Consolidated Adjusted ROE = Consolidated Adjusted Profit divided by Consolidated Adjusted Capital
Consolidated Adjusted Profit ＝ ①＋②＋③
Consolidated Adjusted Capital ＝ ④＋⑤＋⑥
Copyright © Sony Financial Holdings Inc. All rights reserved.

26

Update of Major KPIs

Sony Life
Policy Amount in Force *1

48.5

49.5

50.3

（JPY tn）
Sep. 18

Sony Assurance
Direct Premiums Written

53.1

55.9

59.0

（JPY bn）
Mar. 19

Sep. 19

FY17.1H

Sony Bank

Retail Balance*2

4.0

4.2

4.3

Mar. 19

Sep. 19（JPY tn）
FY18.1H

FY19.1H

Sep. 18*1 Individual Life Insurance + Individual Annuities*2 Sum of yen deposits, foreign currency deposits, investment trusts, financial products intermediary services, mediated discretionary investment
contracts and personal loans

Copyright © Sony Financial Holdings Inc. All rights reserved.

27

Financial Soundness

Change from
Mar. 19

Sep. 18

Mar. 19

Sep. 192,618.9%

2,590.5%

2,654.9%+64.4pt

Sony Assurance
Solvency margin ratio

821.0%

813.0%

876.2％+63.2pt

Sony Bank (non-consolidated)
Capital adequacy ratio (domestic standard)

10.43%

9.58％

9.42％

（0.16pt)

Sony Life (non-consolidated)
Solvency margin ratio

Sep. 18
Sony Bank (non-consolidated）
Non-performing assets ratio（based on Financial Reconstruction Law）*

Mar. 19

0.11%

Sep. 190.12%

Change from
Mar. 190.12%+0.00pt*Non-performing loans (loans based on the Financial Reconstruction Act) / Total loan exposure(Note) Ratios less than the indicated unit have been truncated.

Copyright © Sony Financial Holdings Inc. All rights reserved.

28

Results of Cross-selling Sony Bankʼs Mortgage Loans through Sony Life
Sony Life accounts for 11% of the amount of new mortgage loans for FY19.1H (6M)
Sony Life accounts for 18% of the balance of mortgage loans as of September 30, 2019※Sony Life started handling banking agency business in January 2008.

 Sony Assuranceʼs Automobile Insurance Sold by Sony Life
Sony Life accounts for 6% of new automobile policies for FY19.1H (6M)
※Sony Life started handling automobile insurance in May 2001.

Copyright © Sony Financial Holdings Inc. All rights reserved.

29

Sony Lifeʼs Product Portfolio(Annualized Premiums from New Policies by Product)
FY18.1H（6M）¥37.9 billion

Yen whole
life 3% U.S. dollardenominatedwhole life
14%
Savings type
U.S. dollar-denominatedproducts
single-premium whole30%
life insurance 7%

FY19.1H（6M）¥38.6 billion
Yen whole
life 3%

Protection-type（term-life）
46％

Yen whole U.S. dollarlife 3%
denominatedwhole life13%

FY18（12M）¥87.9 billion

Savings typeproducts
27%

U.S. dollar-denominatedsingle-premium whole
life insurance 7%

Savings typeproducts
39%

U.S. dollardenominatedwhole life 16%

U.S. dollar-denominatedsingle-premium
whole life insurance
19%
Protection-type（term-life）
23％

Protection-type（term-life）
50％

Note: Savings type products : Endowment, annuities, and educational endowment insurances

Copyright © Sony Financial Holdings Inc. All rights reserved.

30

Sony Lifeʼs Asset Management(Purchase Securities in the General Account)
Japanesestocks0.4%

FY18.1H（6M）

FY19.1H（6M）

Foreign bonds
24.0%Japanese
corporate
bonds
17.6%

Japanese stocks
0.2%

JGBs
58.0%

JGBs
30.0%
Japanesestocks0.2%

FY18（12M）

社債
25.9%

Foreign bonds
23.5%

Japanese
corporate
bonds
12.7%

Foreign bonds
56.2%
Japanese corporate
bonds
13.6%

JGBs
63.6%

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)
Copyright © Sony Financial Holdings Inc. All rights reserved.

31

Sony Lifeʼs General Account Assets(Detail of General Account Assets)◆ Asset management review
We have continued to accumulate ultralong-term bonds to match the liability characteristics of insurance
policies with long-term maturities with the aim of reducing interest rate risk.
Mar. 19

Sep. 19◆ Bond duration

Amount%Amount%Japanese bonds(including JGBs)

7,745.3

85.3%

7,918.9

83.3%

Japanese stocks

28.6

0.3%

27.6

0.3%

Foreign bonds

542.1

6.0%

766.8

8.1%

Foreign stocks

22.5

0.2%

19.4

0.2%

◆ Investment in the money held in trustis mainly into Japanese bonds.

Money held in trust

269.3

3.0%

269.8

2.8%

Policy loans

198.3

2.2%

203.6

2.1%

Real estate*

90.8

1.0%

90.1

0.9%

◆ The holding ratio on the real status ofJapanese bonds including those invested
in money held in trust in the generalaccount :Cash and call loans

61.9

0.7%

93.3

1.0%

Others

120.2

1.3%

114.3

1.2%

Total

9,079.4

100.0%

9,504.1

100.0%（JPY bn）

Mar. 18 : 21.4 years
Mar. 19 : 21.8 years
Sep. 19 : 21.9 years

Mar. 18 : 89.5%
Mar. 19 : 88.3%
Sep. 19 : 86.2%*Real estate is the total of land, buildings, and construction in progress.
Copyright © Sony Financial Holdings Inc. All rights reserved.

32

Sony Lifeʼs Interest Income and Dividends (Details)(JPY mn)

FY18.1H

FY19.1H

Change00+22.2%

Japanese bonds(including JGBs)

64,207

66,031+2.8%

Japanese stocks

295

216

(26.8%)

Foreign securities

8,988

13,279+47.7%

Other securities

293

11

(96.2%)

Loans

3,396

3,500

+3.1%

Real estate

4,347

4,860

+11.8%

269

206(23.4%)

81,798

88,105+7.7%

Cash and deposits

OthersTotal

Copyright © Sony Financial Holdings Inc. All rights reserved.

33

Sony Lifeʼs Capital Gains (Losses)
FY18.1H

FY19.1H

40,355

17,821

Losses on trading securities, net

19

ー

Losses on sale of securities…(3)34ー（JPY mn）
Capital losses（JPY mn）

4,026

2,991

Losses on derivatives, net

19,7044,251

Foreign exchange gains, net

3,974

Losses on hedges of available-for-salesecurities…(2)

2,628

242

Losses on U.S. dollar-denominatedinsurance (foreign exchange losses)…(5)

4,461

7

Foreign exchange losses, net

ー

63

3,316

2,317

21,398ー

21,280ーー

11,356

ー

11,356(15,639)(4,083)

Other capital gains
Gains on U.S. dollar-denominatedinsurance（the reversal of policy
reserves for foreign exchange
fluctuations)…(5)ー

10,552

ー

10,859Losses on hedges of variable life
insurance…(1)

ー

(323)

16,57025

16,570ー（JPY mn）

FY18.1H

Losses on U.S. dollar-denominatedinsurance（the provision of policy reserves
for foreign exchange fluctuations)…(5)13,738

Gains on U.S. dollar- denominatedinsurance (foreign exchange gains)…(5)Losses on U.S. dollar-denominatedinsurance…(5)Other capital losses

24,715

Income from trading securities, net

Losses on valuation of securities…(4)12,304

FY19.1H

Capital gains

Gains on sale of securities…(3)Losses on hedges of variable life
insurance…(1)FY18.1H

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
FY19.1H(1) Gains (Losses）on hedges of variable life insurance(12,304)(3,650)(2) Gains (losses）on hedges of available-for-sale securities(2,628)(242)(3) Gains (losses) on sale of securities

3,282

2,317

(4) Losses on valuation of securities(4,026)(2,991)249

489(5) Gains (losses) on U.S. dollar-denominated insurance

Copyright © Sony Financial Holdings Inc. All rights reserved.

34

Sony Lifeʼs Quarterly Trend on New Policy Amount

1,842.4

1,674.7
1,485.0

1,115.8

1,114.8

1,435.5

1,555.1

1,214.7

1,219.1

1,317.2（JPY bn）

0.0
FY17.1Q

FY17.2Q

FY17.3Q

FY17.4Q

FY18.1Q

FY18.2Q

FY18.3Q

FY18.4Q

FY19.1Q

FY19.2Q

Note : Individual Life Insurance + Individual Annuities

Copyright © Sony Financial Holdings Inc. All rights reserved.

35

Sony Lifeʼs Quarterly Trend on
Annualized Premiums from New Policies
Annualized premiums from new policies

Of which, third-sector

30.9

19.5
16.1

（JPY bn）

21.1

16.2

18.7

19.2

18.9

21.1
17.5

3.1

2.8

3.3

3.6

3.3

3.9

3.8

4.0

FY17.1Q

FY17.2Q

FY17.3Q

FY17.4Q

FY18.1Q

FY18.2Q

FY18.3Q

FY18.4Q

3.1

3.1

FY19.1Q

FY19.2Q

Note : Individual Life Insurance + Individual Annuities

Copyright © Sony Financial Holdings Inc. All rights reserved.

36

Sony Lifeʼs Quarterly Trend on New Business Value

19.8

21.1

21.9

22.6

23.6

23.1

17.1

17.0
14.8

12.2

（JPY bn）

FY17.1Q

FY17.2Q

FY17.3Q

FY17.4Q

FY18.1Q

FY18.2Q

FY18.3Q

FY18.4Q

FY19.1Q

FY19.2Q

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 FY2018 onward reflect the revision in the insurance risk measurement method and others which revised on March 31, 2018.
Copyright © Sony Financial Holdings Inc. All rights reserved.

37

Sony Lifeʼs ESR
 The risk amount based on economic value as of September 30, 2019 was ¥768.8 billion, up ¥10.3 billion from
June 30, 2019, resulting from an increase in interest rate risk, due to an increase in yen interest rates.
 ESR as of September 30, 2019 was 222%, up 2pt from June 30, 2019 due mainly to an increase in MCEV.
（JPY bn）

Mar. 19

Sep. 19

Jun. 19

Change from
Mar. 19

Change from
Jun. 19

Insurance risk

547.3

586.2

588.5

+41.1

+2.3

Market-related risk

332.5

299.9

303.1

(29.3)

+3.2

202.1

159.2

166.7

(35.3)＋7.4

Operational risk

33.4

35.0

41.4

+8.0

+6.3

Counter party risk

3.0

4.1

3.7

+0.6

(0.4)

(174.0)(166.8)(167.9)

+6.1

(1.1)

742.3

758.5

768.8

+26.5

+10.3

Change from
Mar. 19

Change from
Jun. 19

Of which, interest rate risk

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

MCEV + Frictional costs

Mar. 19

Jun. 19

Sep. 19

1,743.7

1,672.2

1,709.4(34.3)

+37.1

235%

220%

222%

(13pt)+2pt

ESR

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.
Copyright © Sony Financial Holdings Inc. All rights reserved.

38

Operating Performance : AEGON Sony Life Insurance◆AEGON Sony Life Insuranceʼs new policy amount and policy amount in force

Number and Amount of New Policies*

Number and Amount of Policies in Force**

New policy amount

Policy amount in force

Number of new policies (Thousands of policies)

Number of policies in force (Thousands of policies)

25.6

525.8

522.7

532.4

93.8

94.5

97.6

Sep. 18

Mar. 19

Sep. 19

25.7

5.5
4.7

14.5
2.9

（JPY bn）（JPY bn）

FY17.1H

FY18.1H

FY19.1H*Amounts for FY17.1H and FY18.1H are individual annuities while amounts for
FY19.1H are total of individual insurance and individual annuities◆Net income (losses) for AEGON Sony Life and SA Reinsurance（JPY bn）

FY18.1H

FY19.1H** Amounts for as of Sep. 2018 are individual annuities while amounts forMar. 2019 and Sep. 2019 are total of individual insurance and individual
annuities

ChangeAEGON Sony Life

(1.7)

(0.7)

+1.0

SA Reinsurance

1.1

1.0

(0.1)

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.

Copyright © Sony Financial Holdings Inc. All rights reserved.

39

Trend on JGB Yields (Par rate)
10 years
20 years

0.70%

30 years
40 years

0.50%

0.30%

0.10%

(0.10%)(0.30%)
Mar. 19

Apr. 19

Mar. 19

Apr. 19

May. 19

Jun. 19

Jul. 19

Aug. 19

May 19Jun. 19

Jul. 19

Aug. 19

Sep. 19
Sep. 19

10 years(0.08%)(0.05%)(0.09%)(0.16%)（0.16%)(0.28%)(0.21%)

20 years

0.34%

0.37%

0.30%

0.23%

0.20%

0.05%

0.20%

30 years

0.51%

0.56%

0.46%

0.36%

0.35%

0.15%

0.36%

40 years

0.58%

0.63%

0.50%

0.41%

0.40%

0.17%

0.43%

Copyright © Sony Financial Holdings Inc. All rights reserved.

40

Trend on Risk-free Rate (Japanese yen/Par rate)
1.60%
1.40%
1.20%

Convergence
period: 20 year

Mar. 19
Jun. 19
Sep. 19

1.00%
0.80%
0.60%
0.40%
0.20%
0.00%
(0.20%)(0.40%)

Last liquid point:
40 year(0.60%)
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%).
Copyright © Sony Financial Holdings Inc. All rights reserved.

41

Trend on U.S. Dollar Bonds Yields (Par rate)
10 years
3.00%

20 years
30 years

2.60%

2.20%

1.80%

1.40%
Mar. 19

Apr. 19
Mar. 19

May. 19
Apr. 19

Jun. 19

May 19Jul. 19

Jun. 19

Jul. 19

Aug. 19
Aug. 19

Sep. 19
Sep. 19

10 years

2.41%

2.50%

2.13%

2.01%

2.02%

1.50%

1.67%

20 years

2.63%

2.74%

2.38%

2.31%

2.30%

1.77%

1.92%

30 years

2.82%

2.93%

2.57%

2.53%

2.53%

1.96%

2.11%

Copyright © Sony Financial Holdings Inc. All rights reserved.

42

Trend on Risk-free Rate (U.S. Dollar /Par rate)
3.10%

Convergence
period: 30 year

Mar. 19

2.90%

Jun. 19
Sep. 19

2.70%
2.50%
2.30%
2.10%
1.90%
1.70%
1.50%

Last liquid point:
30 year1 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%).
Copyright © Sony Financial Holdings Inc. All rights reserved.

43

Consolidated︓Summary Financial Statements
FY18.1H

FY19.1H

779.3

806.9

+27.5

+3.5%

Ordinary profit

37.4

48.7

＋11.3

+30.3%

Ordinary revenues

57.7

60.6

+2.9

+5.0%

5.4

5.7

+0.3

+5.9%

22.0

24.5

+2.5

+11.5%

Ordinary profit

4.6

5.6

+0.9

+20.5%

Ordinary revenues

1.7

2.2

+0.5

+33.2%

Ordinary profit

(0.3)

(0.4)

(0.1)

ー

Ordinary revenues

860.8

894.4

+33.6

+3.9%

Ordinary profit

47.2

59.6

+12.4

+26.4%

Profit attributableto owners of theparent

31.7

40.4

+8.6

+27.3％（JPY bn）
Life insurance
business
Non-life
insurancebusiness

Ordinary revenues

Ordinary profit
Ordinary revenues

Bankingbusiness
Intersegment
adjustments*

Consolidated

Change*“Intersegment adjustments” is from SFH, the nursing care business, and the venture capital business.
Sony Financial Ventures Inc. is included in the scope of consolidation from FY18.2Q, SFV・GB L.P. is included in
the scope of consolidation from the FY18.4Q and SmartLink Network Europe B.V. is included in the scope of
consolidation from FY19.2Q, respectively.
(Note) Comprehensive income : FY18.1H: ¥19.2 billion, FY19.1H: ¥51.8 billion（JPY bn）
Consolidated

Mar. 19

Change from Mar. 19

656.8

681.6

+24.7

+3.8%

13,468.2

14,143.3+675.1+5.0%

Net assets
Total assets

Sep. 19

Copyright © Sony Financial Holdings Inc. All rights reserved.

44Sony Life︓Summary Financial Statements（Non-consolidated）
FY19.1H

779.2

806.8

＋27.5

＋3.5%

Income from insurance
premiums

542.0

665.4

＋123.4+22.8%

Investment income

231.4

134.1

(97.2)(42.0%)

Interest income
and dividends

81.7

88.1

+6.3

＋7.7%

Gains on sale ofsecurities

3.3

2.3

(0.9)

(30.1%)

Foreign exchange
gains, net

21.3

−

(21.3)(100.0%)Gains on separate
accounts, net

122.6

41.3

(81.2)(66.3%)

741.5

758.2

+16.6

+2.2%

Insurance claims andother payments

200.4

222.6

+22.1

+11.0%

Provision for policy
reserves and others

426.8

415.1

(11.7)(2.8%)

26.6

22.0

(4.6)

(17.3%)

19.7

4.2(15.4)(78.4%)

Foreign exchange
losses, net

ー

10.5

＋10.5

ー

Operating expenses

71.4

78.5

＋7.0

＋9.9%

Ordinary profit

37.7

48.6

＋10.9

＋29.0%Net income

25.4

32.7

＋7.3

＋28.9%

Ordinary revenues

Ordinary expenses

Investment
expensesLosses onderivatives, net

Mar. 19

Sep. 19

Securities

9,523.8

10,039.4＋515.5＋5.4%

Policy reserves

9,268.4

9,681.7＋413.2

+4.5%

513.9

525.2

+11.3

+2.2%

122.7

133.4

+10.7

+8.7%

10,380.1

10,897.4+517.2+5.0%

1,300.7

1,393.2

+92.5

+7.1%

FY18.1H

FY19.1H

82.1

70.7

（JPY bn）

FY18.1H（JPY bn）

ChangeNet assets
Net unrealized gains
on other securities
Total assets
Separate accountassets（JPY bn）
Gains from investment,net (General account)

Change from Mar. 19

Change(11.3)(13.8%)

Copyright © Sony Financial Holdings Inc. All rights reserved.

45

Sony Assurance︓Summary Financial Statements(Underwriting Performance by Type of Policy)
Direct Premiums Written *Medical insurance is included in personal accident.
（JPY bn）

FY18.1H

FY19.1H（JPY mn）

ChangeOrdinary revenues

57.7

60.6

+2.9

+5.0%

Underwriting
income

56.5

59.3

+2.7

+4.9%

Investment
income

1.1

1.3

+0.1

+11.1%

Ordinary expenses

52.3

54.9

+2.5

+4.9%

Underwriting
expenses

38.9

40.5

＋1.5

＋4.0%

Operating,general andadministrative
expenses

13.3

Ordinary profit
Underwriting
incomeNet income

14.3

＋1.0

Fire

5.7

＋0.3

+5.9%

4.2

4.4

＋0.2

+5.0%

3.8

4.1

＋0.2

+5.6%

819

Change+645.0%

−

−

ー

4,361

4,637

+6.3%

Voluntary automobile

51,47853,638+4.2%

Compulsory automobile liability
Total

−

−

ー

55,95059,096+5.6%

FY18.1H

FY19.1H

ChangeNet Premiums Written（JPY mn）
Fire

8

449

ー

Marine−0ーPersonal accident

4,441

4,502

+1.4%

Voluntary automobile

51,33653,491+4.2%

Compulsory automobile liability
Total

733

863

+17.7%

56,52059,307+4.9%

FY18.1H

FY19.1H

ChangeNet losses paid
（JPY mn）

Change from
Mar. 19

Fire

3

9

+131.2%Marine2(3)ーMar. 19

Sep. 19

Underwriting
reserves

127.8

133.9

＋6.1

＋4.8%

Net assets

34.7

36.3

+1.5

＋4.4%

Compulsory automobile liability

Total assets

219.6

225.2

＋5.6

＋2.6%

Total

（JPY bn）

FY19.1H

110

Personal accident

Marine+7.7%

5.4

FY18.1H

Personal accident

1,402

1,559

+11.2%

Voluntary automobile

24,74926,595

+7.5%

671

660

(1.6%)

26,83028,821+7.4%

Copyright © Sony Financial Holdings Inc. All rights reserved.

46

Sony Bank︓Summary Financial Statements(Balance of Securities by Credit Rating)◆ Consolidated（JPY bn）

FY18.1H

FY19.1H

ChangeOrdinary revenues

22.0

24.5

+2.5

+11.5%

Ordinary profit

4.6

5.6

＋0.9

＋20.6%

Profit attributable toowners of the parent

3.0

3.7

+0.6

+20.7%◆ Non-consolidated（JPY bn）

FY18.1H

FY19.1H

ChangeOrdinary revenues

19.9

22.2

＋2.3

+11.6%

Gross operating profit

11.8

13.2

＋1.4

＋11.9%Net interest income

11.4

12.0

+0.6

+5.9%

Net fees andCommissions

(1.6)

(0.7)

+0.8

−

Net other operating
income

2.0

1.8

(0.1)

(7.1%)

General andadministrative expenses

7.6

8.1

+0.5

+7.0%

Net operating profit

4.1

5.0

+0.9

＋22.4%

Ordinary profit

4.2

5.0

+0.8

+19.8%Net income

2.9

3.5

＋0.5

＋19.8%（JPY bn）
Net assets
Net unrealized gains
on other securities,
net of taxes
Total assets

Mar. 19

Sep. 19◆ Balance of Securities by Credit Rating（Non-consolidated）（JPY bn）
AAA

Change from
Mar. 19

Mar. 19

Sep. 19

296.6

327.8

+31.1

+10.5%

AA

77.3

63.3

(13.9)(18.1%)

A

288.0

307.5

+19.4

+6.8％

BBB

24.4

29.6

＋5.2

＋21.4％

Others

10.0

8.7

(1.2)

(12.4%)

Total

696.4

737.1

+40.6

+5.8%

Change from
Mar. 19

87.2

87.9

+0.6

+0.8%

3.9

4.2

+0.2

+6.1%

2,860.9

3,003.9＋143.0+5.0%

Copyright © Sony Financial Holdings Inc. All rights reserved.

47

Sony Bank︓Operating Performance(On Managerial Accounting Basis)◆ On Managerial Accounting Basis・ Net interest income︓Increased due to an increase of interest income in investment securities and on loans in line witha growing balance of mortgage loans.
・ Net fees and commissions︓Improved due to an increase of mortgage loansʼ fees and commissions＜Reference＞

FY18.1H

FY19.1H

11.8

13.2

＋1.4

+11.9%Net interest income*1 ①

12.5

13.0

+0.5

＋4.0%

Net fees andcommissions*2

(1.3)

(0.5)

+0.8

−

Net other operating
income*3

0.6

0.6

＋0.0

＋9.2%

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

11.2

12.5

＋1.3

＋12.1%

Operating expenses andother Expenses ③

7.7

8.2

＋0.4

＋6.3%

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

3.4

4.3

＋0.8

＋24.9%（JPY bn）
Gross operating profit②

ChangeYield on investment■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

0.93

0.25

Interest spread

1.19

1.17

■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.

Interest Spread(Managerial Accounting Basis）(0.04pt)

0.89

0.30

（%）

FY18.1H

FY19.1H

Note: Interest spread=(Yield on investment)-(Yield on financing)
Copyright © Sony Financial Holdings Inc. All rights reserved.

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

48