November 12, 2019Sony Financial Holdings Inc.

Summary Information on Sony Assurance’s Financial Results
for the Six Months Ended September 30, 2019
<Contents>
1. Balance Sheets

P.2

2. Statements of Income

P.3

3. Financial Summary

P.4

4. Premiums and Losses Paid by Type of Policy

P.5

5. Risk-monitored Loans

P.5

6. Securities

P.6

7. Non-consolidated Solvency Margin Ratio

P.7

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

1. Balance Sheets
As ofMarch 31, 2019

(Millions of yen)
As ofSeptember 30, 2019

Assets:Cash and deposits

20,04331,290

Securities

157,959

153,297

Tangible fixed assets

1,689

1,491

Intangible fixed assets

10,012

10,961Other assets

18,60916,470Accounts receivable

11,115

8,916

Others

7,493

7,554

Deferred tax assets

11,328

11,776

Total Assets

219,643

225,286

168,494

175,104

Reserve for outstanding losses and claims

40,674

41,157

Underwriting reserves

127,819

133,946

13,01810,515

Income taxes payable

1,938

2,345Others

11,0808,170

Reserve for employees’ retirement benefits

1,857

1,881

Reserve for employees’ bonuses

1,236

1,210

Reserve under the special laws

238

253

Reserve for price fluctuations

238

253

184,844

188,966

Common stock

20,00020,000Capital surplus

3,389

3,389

Retained earnings

10,46012,071

Total shareholders' equity

33,84935,460Net unrealized gains (losses) on available-for-sale securities, net of taxes

949

859

Total valuation and translation adjustments

949

859

34,79836,320219,643

225,286

Liabilities:
Underwriting reserves

Other liabilities

Total Liabilities
Net Assets:
Shareholders’ equity

Valuation and translation adjustments

Total Net Assets
Total Liabilities and Net Assets

2. Statements of Income(Millions of yen)
For the six months ended
September 30, 2018
Ordinary Revenues

For the six months ended
September 30, 201957,76260,67256,552

59,34656,52059,307

32

38

1,172

1,302

Interest income and dividends

679

668

Gains on sale of securities

526

672

Transfer to interest and dividends on deposits of premiums

(32)

(38)

36

23

52,312

54,901

Underwriting expenses

38,97440,535Net losses paid

26,83028,821

Loss adjustment expenses

4,031

4,269

867

834

Provision for reserve for outstanding losses and claims

1,782

483

Provision for underwriting reserves

5,463

6,127

0－

0－

13,336

14,363

0

2

5,449

5,770

Extraordinary Gains－－

Extraordinary Losses

2033

Losses on disposal of fixed assets

418

Provision for reserve under the special laws

15

15

Provision for reserve for price fluctuations

15

15

Income Before Income Taxes

5,429

5,736

Income Taxes—Current

1,802

2,039

Income Taxes—Deferred(267)(413)

Total Income Taxes

1,535

1,625

Net Income

3,894

4,111

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

Other ordinary income
Ordinary Expenses

Net commissions and brokerage fees

Investment expenses
Losses on sale of securities
Operating, general and administrative expenses
Other ordinary expenses
Ordinary Profit3. Financial Summary (Comparison to previous year)(Millions of yen)
For the six months ended For the six months ended
September 30, 2018
September 30, 2019

YoY change(Amount)

YoY change(%)

Gross direct premiums written

55,95059,096+3,145+5.6

Direct premiums written

55,95059,096+3,145+5.6

56,552

59,346+2,793+4.9

56,52059,307+2,787+4.9

Underwriting expenses

38,97440,535+1,560+4.0

Net losses paid

26,83028,821+1,990+7.4

Loss adjustment expenses

4,031

4,269

+237+5.9

867

834(33)

(3.8)

1,172

1,302

+129

+11.1

Interest income and dividends

679

668(10)(1.6)

Gains on sale of securities

526

672+146

+27.9

0－(0)

(100)

0－(0)

(100)

Operating, general and administrative expenses

13,336

14,363+1,026+7.7

Operating, general and administrative
expenses related to underwriting

13,304

14,325+1,021+7.7

35

20(15)(42.7)

5,449

5,770+320

+5.9

4,272

4,484+212+5.0

Extraordinary Gains－－－－

Extraordinary Losses

20

33+13+63.6

Extraordinary gains (losses), net

(20)

(33)

(13)

－

Income Before Income Taxes

5,429

5,736+307+5.7

Income Taxes—Current

1,802

2,039+236+13.1

Income Taxes—Deferred(267)

(413)

(145)

－Total Income Taxes

1,535

1,625+90+5.9

Net Income

3,894

4,111+217+5.6

Net loss ratio

54.6%

55.8%

Net expense ratio

25.1%

25.6%

Adjusted ordinary profit

7,244

7,683+438+6.1

E.I. loss ratio

61.2%

60.6%

Underwriting income
Net premiums written

Net commissions and brokerage fees
Investment income

Investment expenses
Losses on sale of securities

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

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.Net loss ratio = (Net losses paid + Loss adjustment expenses) / Net premiums written x 100
3. Net expense ratio = (Net commissions and brokerage fees + Operating, general and administrative expenses related to underwriting) / Net premium written x 100
4. Adjusted ordinary profit = Ordinary profit + Provision for catastrophe reserve＊Provision for catastrophe reserve is described as positive amount.
5. E.I. loss ratio = (Net losses paid + Provision for reserve for outstanding losses and claims + Loss adjustment expenses) / Earned premiums x 100＊Earthquake insurance and compulsory automobile liability insurance are excluded from the above calculation.

4. Premiums and Losses Paid by Type of Policy
Direct premiums written(Millions of yen)
For the six months ended
September 30, 2018
AmountComposition

For the six months ended
September 30, 2019
AmountYoY change%

Composition%

YoY change%%

Fire

110

0.2

+7.0819

1.4

Marine－－－－－－

Personal accident

4,361

7.8+0.3

4,637

7.8+6.3

Voluntary automobile

51,47892.0+5.8

53,63890.8+4.2

Compulsory automobile liability

Total+645.0

－

－－－－

－

55,950

100.0

+5.3

59,096100.0+5.6

Net premiums written(Millions of yen)

For the six months ended
September 30, 2018
AmountComposition

80.0

For the six months ended
September 30, 2019

YoY change%Fire

AmountComposition

449

0.8%
+8.5

YoY change%%+5,023.9

－－－

00.0－

Personal accident

4,441

7.9(0.3)

4,502

7.6+1.4

Voluntary automobile

51,33690.8+5.7

53,491

90.2

+4.2

733

1.3(6.0)

863

1.5

+17.7

56,520

100.0

+5.1

59,307100.0+4.9

MarineCompulsory automobile liability

Total

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

For the six months ended
September 30, 2018
AmountYoY change

3+63.8For the six months ended
September 30, 2019

Net loss ratio%Fire

AmountYoY change

9+131.2%
269.9

Net loss ratio
%

%
7.8

2

(36.4)－(3)(266.5)－

Personal accident

1,402+3.0

35.2

1,559+11.2

37.8

Voluntary automobile

24,749+8.0

55.7

26,595

+7.5

57.4

671

+2.6

91.6

660

(1.6)

76.6

26,830+7.6

54.6

28,821+7.4

55.8

MarineCompulsory automobile liability

Total

5. Risk-monitored Loans
Not applicable6. Securities(1) Held-to-maturity securities(Millions of yen)
As of March 31, 2019

As of September 30, 2019

Balance sheet
amountFair value

Difference

Balance sheet
amountFair value

Difference

Japanese bonds

79,921

101,571

21,65078,489103,025

24,536

Foreign securities

198

208

10198

206

880,119

101,77921,660

78,687103,232

24,545

－－－

1,550

1,477

(72)

80,119101,779

21,66080,237

104,710

24,472

Fair value exceeding balance sheet amount

Subtotal
Fair value not exceeding balance sheet amountJapanese bonds
Total(2) Available-for-sale securities(Millions of yen)
As of March 31, 2019

As of September 30, 2019

Balance sheet
amountAcquisition
cost

Difference

Balance sheet
amountAcquisition
cost

Difference

Japanese bonds

49,97049,89970

48,912

48,854

57

Japanese stocks

1,599

324

1,274

1,364

202

1,161

Foreign securities

－－－

200

200051,569

50,223

1,345

50,47649,257

1,219

26,271

26,298(27)

21,282

21,301

(19)

－－－

1,299

1,305

(5)

26,271

26,298(27)

22,582

22,607(25)

77,84076,521

1,318

73,05971,865

1,194

Balance sheet amount exceeding acquisition cost

Subtotal
Balance sheet amount not exceeding acquisition cost
Japanese bonds
Foreign securities
SubtotalTotal

7. Non-consolidated Solvency Margin Ratio(Millions of yen)
As of March 31, 2019(A) Total non-consolidated solvency margin

As of September 30, 2019

60,01065,80331,34934,210Reserve for price fluctuations

238

253

Contingency reserve122126

Catastrophe reserve

24,636

26,548

－

－

1,186

1,074

Capital or treasury, etc.

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－－

Excess refund reserve－－

Subordinated debt－－

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

－－－－

2,476

3,588

14,76015,019Others(B) Total non-consolidated risk

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

Ordinary insurance risk

(R1)

13,181

13,436

Third-sector insurance risk

(R2)

00

Assumed interest rate risk

(R3)

123

128

Asset management risk

(R4)

1,861

1,895

Business management risk

(R5)

325

331

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

1,105

1,100

813.0 %

876.2 %[(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 Ministry of Finance Public Notice No. 50 of 1996.