November 14, 2011
Sony Financial Holdings Inc.

Summary Information on Sony Assurance’s Financial Results
for the Six Months Ended September 30, 2011
<Contents>
1. Balance Sheets

P.2

2. Statements of Income

P.3

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

P.4

4. Premiums and Losses Paid by Type of Policy

P.5

5. Risk-Monitored Loans

P.5

6. Securities

P.6

7. Solvency Margin Ratio

P.7

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

P.8

11. Balance Sheets(Millions of yen)
As ofMarch 31, 2011

As ofSeptember 30, 2011

Assets:Cash and deposits

3,859

4,691

Securities

80,608

85,100

Tangible fixed assets

384

468

Intangible fixed assets

3,632

4,634

Other assets

14,947

13,638

Accounts receivable

10,213

8,436

Others

4,734

5,201

5,949

6,151

109,382

114,684

84,97890,305Reserve for outstanding losses

20,904

22,619Underwriting reserves

64,07367,685

6,212

5,685

789

692

5,423

4,992

Reserve for employees’ retirement benefits

644

659

Reserve for directors’ retirement benefits

34

35

Reserve for employees’ bonuses

695

707

Reserve for price fluctuations and others

4352

435292,609

97,445

Common stock

20,00020,000Capital surplus

20,00020,000Retained deficits(23,246)(22,792)

Total shareholders’ equity

16,753

17,207Net unrealized gains on other securities, net of taxes

1931

Total valuation and translation adjustments

1931

Total Net Assets

16,772

17,239Total Liabilities and Net Assets

109,382

114,684

Deferred tax assets
Total Assets
Liabilities:
Underwriting reserves

Other liabilities
Income taxes payable

OthersReserve for price fluctuations
Total Liabilities
Net Assets:
Shareholders’ equity

Valuation and translation adjustments22. Statements of Income(Millions of yen)
For the six months ended
September 30, 2010
Ordinary Revenues

For the six months ended
September 30, 201137,10739,93036,72239,45936,70739,443

14

15

371

430

383

423-

20

(14)

(15)

13

40

36,43139,191

Underwriting expenses

27,94429,755(Net losses paid)

19,031

21,196(Loss adjustment expenses)

2,343

2,511

665

719

(Provision for reserve for outstanding losses)

1,666

1,715

(Provision for underwriting reserves)

4,236

3,611

-

1-

18,456

9,410

29

23

Ordinary Profit675

739

Extraordinary Gains--

Extraordinary Losses

43

8

Losses on sale or disposal of fixed assets

350

Provision for reserve for price fluctuations and others

8888

Income Before Income Taxes

632

730

Income Taxes –current

643

486

Income Taxes –deferred

(402)

(209)

Total Income Taxes

241

277

Net Income

390

453

Underwriting income(Net premiums written)(Interest and dividends on deposits of premiums)
Investment income(Interest income and dividends)(Gains on sale of securities)(Transfer to interest and dividends on deposits of premiums)

Other ordinary income
Ordinary Expenses(Net commissions and brokerage fees)

Investment expenses(Losses on redemption of securities)
Operating, general and administrative expenses
Other ordinary expenses

Provision for reserve for price fluctuations

33. Financial Summary (Year-on-Year Comparison)(Millions of yen)
For the six months ended For the six months ended
September 30, 2010
September 30, 2011

Change(Amount)

Change(%)

Gross direct premiums written

36,40639,049

2,643

7.3 %

(Direct premiums written)

36,40639,0492,643

7.3

36,72239,4592,737

7.5

36,70739,443

2,736

7.5

Underwriting expenses

27,94429,755

1,810

6.5(Net losses paid)

19,031

21,196

2,164

11.4

(Loss adjustment expenses)

2,343

2,511

168

7.2

(Net commissions and brokeragefees)

665

719

54

8.2

371

430

58

15.8

(Interest income and dividends)

383

423

39

10.4

(Gains on sale of securities)

－

2020－

－

11－

(Losses on redemption of securities)－

11－

Operating, general and administrative expenses

8,456

9,410

953

11.3

(Operating, general and administrative expenses
related to underwriting)

8,4179,357

940

11.2

Other ordinary income (expenses), net(16)1733－

Ordinary profit

675

739

63

9.3

360

345(14)(4.0)

Extraordinary Gains－－－－

Extraordinary Losses

43

8(35)

(80.5)

Extraordinary gains (losses), net(43)

(8)

35

－

Income before income taxes

632

730

98

15.6

Income taxes -current

643

486

(157)

(24.4)

Income taxes -deferred(402)

(209)

192

－

Total income taxes

241

277

35

14.7

Net Income

390

453

62

16.1

Net loss ratio

58.2%

60.1%

Net expense ratio

24.7%

25.5%

Underwriting income(Net premiums written)

Ordinary Income (expenses)

Investment income

Investment expenses(Underwriting profit)
Extraordinarygains (losses)

Ratios

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. Ratios are calculated as follows.
Net loss ratio = (Net losses paid + Loss adjustment expenses) / Net premiums written x 100
Net expense ratio = (Net commissions and brokerage fees + Operating, general and administrative expenses) / Net premiums written x 100(Operating, general and administrative expenses is the amount related to underwriting)44. Premiums and Losses Paid by Type of Policy
Direct Premiums Written(Millions of yen)
For the six months ended
September 30, 2010
Amount

For the six months ended
September 30, 2011

Composition YoY Change%

AmountComposition%

YoY Change%%

Fire

71

0.2(47.6)

66

0.2

(7.7)

Marine－－－－－－

Personal accident

3,5519.8

3.1

3,645

9.3

2.6

Voluntary automobile

32,78390.0

9.8

35,33890.5

7.8－－－－－－

36,406100.0

8.8

39,049100.0

7.3

Compulsory
automobile liability

Total
Net Premiums Written(Millions of yen)

For the six months ended
September 30, 2010
Amount

For the six months ended
September 30, 2011

Composition YoY Change%

AmountComposition%

YoY Change%%

Fire

30.0

(44.0)

640.2

1,743.3

Marine60.0(6.0)

180.0

169.7

Personal accident

3,679

10.0

3.3

3,754

9.5

1.8

Voluntary automobile

32,64888.9

9.7

35,20689.3

7.8

Compulsory
automobile liability

369

1.0

26.8

408

1.0

10.6

Total

36,707100.0

9.2

39,443100.0

7.5

Net Loss Paid(Millions of yen)

For the six months ended
September 30, 2010
Amount

For the six months ended
September 30, 2011

YoY Change Net loss ratio%

AmountYoY Change%

Net loss ratio%%

Fire0(26.4)

116.1

40

192,844.4

62.9

Marine

7

393.5

109.4

1156.1

63.3

776

10.1

24.0

867

11.7

25.7

Personal accident
Voluntary automobile

17,92717.8

61.8

19,86610.863.3

Compulsory
automobile liability

319

23.9

86.7

410

28.3

100.5

Total

19,031

17.6

58.2

21,196

11.4

60.1

5. Risk-Monitored Loans
None56. Securities
1. Held-to-maturity securities(Millions of yen)
As of March 31, 2011

Fair value is higher
than balance sheet
amountJGBs, otherbonds
Foreignsecurities
Subtotal

Fair value is lower
than balance sheet
amountJGBs, otherbonds
Foreignsecurities
Subtotal

Total

As of September 30, 2011

Balance sheet
amountFair value

Difference

Balance sheet
amountFair value

Difference

54,861

55,376514

69,68971,158

1,468

700

713

13

897

908

11

55,561

56,089527

70,586

72,067

1,480

11,083

10,875

(207)

2,534

2,526

(8)

196

193

(3)

－－－

11,28011,06967,159

(210)
317

2,534
73,121

2,526
74,593(8)
1,471

66,841

2. Available-for-sale securities(Millions of yen)
As of March 31, 2011

Balance sheet amount
JGBs, otheris higher thanbonds
acquisition cost
Balance sheet amountis lower thanacquisition cost
Total

JGBs, otherbonds
OthersSubtotal

As of September 30, 2011

Balance sheet
amountAcquisition
costDifference

Balance sheet
amountAcquisition
cost

Difference

5,609

5,552

57

9,400

9,324

75

5,308

5,336

(27)

2,204

2,230(25)

2,848
8,156
13,766

2,848
8,184
13,736

－
(27)
29

374
2,578
11,979374
2,604
11,929

－
(25)
49

6

7. Solvency Margin Ratio(Millions of yen)
As of March 31, 2011

As of September 30, 2011(A) Total solvency margin

28,75829,207

Capital or treasury

16,753

17,2074352

Reserve for price fluctuations
Contingency reserve

89

Catastrophe reserve

11,926

11,893General reserve for possible loan losses--

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

26

44

--

5,860

6,078

5,060

5,269

Net unrealized gains on real estate
Excess refund reserve
Subordinated debt
Deductible items
Others(B) Total risk

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

Ordinary insurance risk（Ｒ1）
Third-sector insurance risk（Ｒ2）00

Assumed interest rate risk（Ｒ3）1213

Asset management risk（Ｒ4）

235

180

Business management risk（Ｒ5）

177

182

Major catastrophe risk（Ｒ6）

615

623

981.4 ％

960.9 ％

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 Ordinance for Enforcement of the Insurance Business Law of Japanand Ministry of Finance Public Notice No.50 of 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
savings-type insurance. Non-life insurance companies must also maintain sufficient ability to pay in the event of a major catastrophe or a dramatic drop in thevalue of the 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
an indicator of an insurer’s ability to pay, calculated as prescribed by the Insurance Business Law of Japan, based on its percentage holdings of capital andother reserves (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.
(1) Insurance underwriting risk
(Ordinary insurance risk)(Third-sector insurance risk)：Risk outside the scope of risk incorporated into the rate of accident occurrence (excluding major catastrophe risk)(2) Assumed interest rate risk

：Risk that actual investment yield 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 (excluding
the 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 gain 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,
an insurer is judged to have sufficient ability to satisfy claims and other payments.

78. (Reference) Solvency Margin Ratio Based on New Standard(Millions of yen)
As of March 31, 2011

As of September 30, 2011(A) Total solvency margin

28,75829,207

Capital or treasury

16,753

17,2074352

Reserve for price fluctuations
Contingency reserve

89Catastrophe reserve

11,926

11,893--26

44------

9,114

9,466

8,207

8,548

General reserve for possible loan losses
Net unrealized gains on other securities(before subtracting tax effects)
Net unrealized gains on real estate
Excess refund reserve
Subordinated debt
The portion of the excess refund reserve and subordinateddebt that is not included in the margin
Deductible items
Others(B) Total risk

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

Ordinary insurance risk (R 1)
Third-sector insurance risk (R2)00

Assumed interest rate risk (R 3)4954

Asset management risk (R4)400323Business management risk (R 5)278286

Major catastrophe risk (R 6)615623631.0 ％

617.0 ％

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

Legislation concerning the calculation of the solvency margin ratio has been revised from the standpoint of raising its credibility, andthese new standards are to become effective as of the end of fiscal 2011 (March 31, 2012). In the period until these new standards go
into effective, the solvency 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 tosatisfy 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
Notice No. 48 of 2010 (effective from March 31, 2012).

8