May 20, 2011
Sony Financial Holdings Inc.

Summary Information on Sony Assurance’s Financial Results
for the Year Ended March 31, 2011
<Contents>
1. Balance Sheets

P.2

2. Statements of Income

P.4

3. Financial Summary (Year-on-Year Comparison)

P.5

4. Premiums and Losses Paid by Type of Policy

P.7

5. Risk-monitored Loans

P.7

6. Securities

P.8

7. Solvency Margin Ratio Calculated Based on the Current Standard

P.9

8. (Reference) Solvency Margin Ratio Based on New Standard

P.10

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1. Balance Sheets(Millions of yen)
As of March 31, 2010

As of March 31, 2011

Assets:Cash and deposits

3,507

3,859

00

3,507

3,859

73,23480,608Japanese government bonds

29,33344,619Japanese municipal bonds

25,65619,990Japanese corporate bonds

12,101

12,253Foreign securities

997

897

Other securities

5,144

2,848

Tangible fixed assets

325

384

Buildings

223

227

Other tangible fixed assets

102

156

1,912

3,632

1,250

3,056

Software in progress

648

569

Other intangible fixed assets

13

6

13,553

14,947

Accrued premiums

1,021

1,078

Due from reinsurers

85

23

Accounts receivable

9,326

10,213

Accrued income

149

153

Deposits

405416

Deposits for earthquake insurance

2325

2,540

3,036

Deferred tax assets

5,807

5,949

Total Assets

98,340109,382

Cash
Deposits
Securities

Intangible fixed assets
Software

Other assets

Suspense payments2

(Millions of yen)
As of March 31, 2010

As of March 31, 2011

Liabilities:
Underwriting reserves

75,851

84,978Reserve for outstanding losses

17,72520,904

Underwriting reserves

58,12564,073

5,809

6,212

Due to reinsurers

125107

Due to foreign reinsurers

108

Income taxes payable

565

789

Deposits received

78

Accounts payable

2,076

2,147Suspense receipt

3,024

3,152

Reserve for employees’ retirement benefits

552644

Reserve for directors’ retirement benefits

28

34

Reserve for employees’ bonuses

589

695

Reserve for price fluctuations and others

27

43

27

43

82,85892,60920,00020,000Capital reserve

20,00020,000Total capital surplus

20,00020,000(24,543)(23,246)(24,543)(23,246)

Total retained deficits(24,543)(23,246)

Total shareholders' equity

15,456

16,753Net unrealized gains on other securities, net of taxes

2519

Total valuation and translation adjustments25

19

Total Net Assets

15,482

16,772

Total Liabilities and Net Assets

98,340109,382

Other liabilities

Reserve for price fluctuations
Total Liabilities
Net Assets:
Shareholders' equity
Common stock
Capital surplus

Retained deficits
Other retained deficits
Unappropriated retained deficits

Valuation and translation adjustments32. Statements of Income(Millions of yen)
For the year ended
March 31, 2010

For the year ended
March 31, 2011

68,174

74,166

67,46873,37567,44073,343

27

31

681

766

688

784

Gains on sale of securities

73

Gains on redemption of securities

1210Transfer to interest and dividends on deposits of premiums

(27)

(31)

24

24

65,60972,021

Underwriting expenses

49,18554,491

Net losses paid

34,57339,256

Loss adjustment expenses

4,009

4,782

Net commissions and brokerage fees

1,271

1,324

Provision for reserve for outstanding losses

1,996

3,178

Provision for underwriting reserves

7,334

5,948

00

132

Losses on sale of securities

12-Losses on redemption of securities

12

16,38917,491

2036

2,565

2,144

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

Other underwriting expenses
Investment expenses

Operating, general and administrative expenses
Other ordinary expenses
Ordinary Profit
Extraordinary Gains-

Extraordinary Losses

-863

65

Losses on sale or disposal of fixed assets

848

49

Provision for reserve for price fluctuations and others

1416

Provision for reserve for price fluctuations

14

16

1,702

2,078

Income Taxes-current

658

920

Income Taxes-deferred(561)(138)

Total Income Taxes

97781

1,6041,297

Income Before Income Taxes

Net Income4

3. Financial Summary (Year-on -Year Compariosn)(Millions of yen)
For the year ended
March 31, 2010
(A)

For the year ended
March 31, 2011
(B)

Change(Amount)(B-A)

Change(B-A) / (A)Gross direct premiums written

67,06972,837

5,767

8.6 %

Direct premiums written

67,06972,8375,767

8.6

67,46873,375

5,907

8.8

Underwriting income
Net premiums written

67,44073,343

5,903

8.8

Underwriting expenses

49,18554,491

5,305

10.8

Net losses paid

34,57339,256

4,68313.5

Loss adjustment expenses

4,009

4,782

772

19.3

Net commissions and brokerage fees

1,271

1,324

53

4.2

681

766

85

12.5

688

784

95

13.9

7

3(3)

(49.6)

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

132(10)(81.1)

12－(12)(100.0)16,38917,491

1,102

6.7

16,301

17,413

1,111

6.8

4(12)

(16)

(378.3)

2,565

2,144(420)(16.4)

1,979

1,469(509)(25.8)

Extraordinary Gains－－－－Extraordinary Losses

863

65(797)(92.4)

Losses on sale of securities
Operating, general and administrative expenses
Operating, general and administrative
expenses for underwriting
Other ordinary income (expenses), net
Ordinary Profit
Underwriting profit

Extraordinary Gains (Losses), net(863)

(65)

797

－

Income Before Income Taxes

1,702

2,078

376

22.1

Income Taxes-current

658

920

261

39.7

Income Taxes-deferred(561)

(138)

422－

Total Income Taxes

97781

684

701.0(307)(19.2)Net IncomeRatios

1,604

1,297

Net loss ratio

57.2%

60.0%

Net expense ratio

26.1%

25.5%

Yield on investments (income basis)

0.93%

0.95%

Yield on investments (realized basis)

0.94%

0.97%

(Reference) Yield on investments (market value basis) : 1.24% for the year ended March 31, 2010 and 0.96% for the year ended March 31, 2011.
Notes

1. Underwriting profit = Underwriting income – (Underwriting expenses + Operating, general and administrative expenses for underwriting) ± Other income (expenses).
Other income (expenses) is the amount equivalent to the corporate income taxes for compulsory automobile liability insurance, etc.
2. Calculation methods for yield on investments are described in separate attachments.

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 thenumerator, and acquisition cost is thedenominator.
• 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 (market value basis)
An indicator of investment efficiency based on market value. Realized profit and loss plus net unrealized
gains is the numerator, and market value is the denominator.
• Numerator = (Investment income + Interest and dividends on deposits of premiums – Investment expenses+ (Net unrealized gains at end of period* – Net unrealized gains at end of previous period*)• Denominator =Average balance according to the acquisition cost or amortized cost
+ Net unrealized gains on other 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, 2011

For the year ended March 31, 2010
AmountCompositionYoY Change%%AmountComposition

YoY Change%%Fire2780.4(26.6)

185

0.3(33.6)

Marine－－－－－－

Personal accident

6,941

10.4

4.3

7,135

9.8

2.8

Voluntary automobile

59,84989.2

11.2

65,516

89.9

9.5

－

－－－－

－

67,069

100.0

10.2

72,837100.0

8.6

Compulsory automobile liability
Total

Net premiums written(Millions of yen)
For the year ended March 31, 2011

For the year ended March 31, 2010
AmountComposition

YoY Change%%AmountComposition

YoY Change%%

Fire120.0(32.9)80.0(34.6)

Marine20.0(94.2)

50.0

148.2

Personal accident

7,168

10.6

3.4

7,369

10.0

2.8

Voluntary automobile

59,60488.4

11.2

65,245

89.0

9.5

651

1.0

32.0

714

1.0

9.7

67,440

100.0

10.4

73,343100.0

8.8

Compulsory automobile liability
Total

Net Losses Paid(Millions of yen)
For the year ended March 31, 2011

For the year ended March 31, 2010
AmountYoY Change

Net loss ratio%%

AmountYoY Change

Net loss ratio

%%

Fire0

45.9

75.90

292.5

102.0

Marine2(76.6)

125.411271.1

187.5

Personal accident

1,479

8.1

22.9

1,620

9.5

24.6

Voluntary automobile

32,555

15.9

61.1

36,941

13.5

63.6

535

10.5

82.1

683

27.7

95.6

34,573

15.4

57.2

39,25613.5

60.0

Compulsory automobile liability
Total

5. Risk-monitored Loans
Not applicable76. Securities
1. Trading-purpose securities
Not applicable
2. Held-to-maturity securities with fair value(Millions of yen)
As of March 31, 2010

As of March 31, 2011

Balance sheet
amountFair value

Difference

Balance sheet
amountFair value

Difference

JGBs,
other bonds

50,936

51,543607

54,861

55,376514

Foreignsecurities

598

616

18

700

713

13

Subtotal

51,53452,159625

55,561

56,089527

JGBs,
other bonds

3,526

3,476

(50)

11,083

10,875(207)

Foreignsecurities

399

392

(6)

196

193

(3)

Subtotal

3,926

3,869

(56)

11,28011,069(210)

55,46056,028568

66,841

67,159317

Fair value is higher thanbalance sheet amount

Fair value is lower thanbalance sheet amountTotal

3. Available-for-sale securities(Millions of yen)
Balance sheet
amountJGBs,
other bonds
Balance sheet amount ishigher than acquisition cost

Balance sheet amount islower than acquisition cost

10,063Foreignsecurities

As of March 31, 2010
Acquisition
cost

Difference

Balance sheet
amount

79

5,609

5,552

57

----

9,983
-

As of March 31, 2011
Acquisition
cost-

Difference

Subtotal

10,063

9,983

79

5,609

5,552

57

JGBs,
other bonds

2,565

2,605(39)

5,308

5,336

(27)

Foreignsecurities

5,144

5,144

-

2,848

2,848

-

Subtotal

7,710

7,750(39)8,156

8,184(27)17,773

17,73340

13,766

13,73629

Total

4. Available-for-sale securities sold during the year
(Millions of yen)
For the year ended March 31, 2011

For the year ended March 31, 2010

JGBs, other bonds

Amount ofsales

Total gains
on salesTotal losses
on salesAmount ofsales

Total gains
on salesTotal losses
on sales

249

7125073-8

7. Solvency Margin Ratio Calculated Based on the Current Standard(Millions of yen)(A) Total solvency margin
Capital or treasury

As of March 31, 2010

As of March 31, 201127,44428,75815,456

16,753

Reserve for price fluctuations

2743

Contingency reserve

68Catastrophe reserve

11,918

11,926

Reserve for possible loan losses--

Net unrealized gains on other securities (before subtracting tax effects

3626

Net unrealized gains on real estate--

Excess refund reserve--

Subordinated debt--

Deductible items--

Other(B) Total risk

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

Ordinary insurance risk（Ｒ 1）
Third-sector insurance risk（Ｒ 2）

--

5,388

5,860

4,599

5,060

00

Assumed interest rate risk（Ｒ3）1012

Asset management risk（Ｒ 4）

288

235

Business management risk（Ｒ 5）

165

177

Major catastrophe risk（Ｒ 6）

614

615

1,018.5 ％981.4 ％

Solvency margin ratio(C)[(A)／{(B)×1/2}]×100

Note: The foregoing figures were calculated based on provisions in Articles 86 and 87 of the Insurance Business Law Enforcement Regulations and theMinistry ofFinance Announcement No. 50 (1996).

<Solvency Margin Ratio>
Non-life insurance companies maintain reserves to ensure their ability to pay claims when accidents occur and return contracted amounts at maturity on savingstype insurance. Non-life insurance companies must also maintain sufficient ability to pay in the event of a major catastrophe or a dramatic drop in the value ofthe assets they hold—risk events outside the normal scope of expectations.
Total risk (item (B) in the table above) indicates dangers outside the general scope of expectations. The solvency margin ratio (item (C) in the table above) is anindicator of an insurer’s ability to pay, calculated as prescribed by the Insurance Business Law of Japan, based on its percentage holdings of capital and otherreserves (in other words, the total solvency margin: as indicated by (A) above).
“Risk events outside the normal scope of expectations” refers to the total of the amounts represented by the following risks:：Risks outside the scope of risk incorporated into the rate of accident occurrence (excluding major catastrophe(1) Insurance underwriting riskrisk)(Ordinary insurance risks)(Third-sector insurance risks)(2) Assumed interest rate risk

：Risk that actual investment yields will fall below the investment yield assumed when calculating premiums(3) Asset management risk

：Risk arising from such factors as unexpectedly large fluctuations in prices on owned 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 the Ise Bay Typhoon)

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

98. (Reference) Solvency Margin Ratio Based on New Standard(Millions of yen)
As of March 31, 2011(A) Total solvency margin

28,758

Capital or treasury

16,753

Reserve for price fluctuations

43

Contingency reserve

8

Catastrophe reserve

11,926

Reserve for possible loan losses-

Net unrealized gains on other securities (before subtracting tax effects)

26

Net unrealized gains on real estate-

Excess refund reserve-

Subordinated debt-

Portion of the excess refund reserve and subordinated debt that is not included in the margin-

Deductible items-

Other(B) Total risk22(R1+R2) +(R3+R4) +R5+R6

9,114

Ordinary insurance risk（Ｒ1）

8,207

Third-sector insurance risk（Ｒ2）0Assumed interest rate risk（Ｒ3）49Asset management risk（Ｒ4）400Business management risk（Ｒ5）278

Major catastrophe risk（Ｒ6）615

Solvency margin ratio(C)[(A)／{(B)×1/2}]×100

631.0 ％

Legislation concerning the calculation of the solvency margin ratio has been revised from the standpoint of raising its credibility, and these newstandards are to become effective as of the end of fiscal 2011 (March 31, 2012). In the period until these new standards go into effective, thesolvency margin ratio calculated on this basis is indicated for reference. Owing to the stricter risk measurement under the new solvency margin
ratio standard, in some cases the ratio may be lower than under the current calculation.
However, as is the case under the current method, if this ratio is 200% or higher, an insurer is judged to have sufficient ability to satisfy claims
and other payments.

Note: The “new standard” reflects the content of the revisions prescribed in Cabinet Office Ordinance No. 23 of 2010 and FSA Public Ministerial
Announcement No. 48 (2010) (effective from March 31, 2012).

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