November 14, 2011
Sony Financial Holdings Inc.

Summary Information on Sony Life’s Financial Results
for the Six Months Ended September 30, 2011
<Contents>
1. Key Performance Results(1) Policy Amount in Force and New Policy Amount(2) Annualized Premiums(3) Major P/L Items(4) Total assets

P.2
P.2
P.3
P.3

2. Status of Investment Assets (General Account)(1) Investment Environment(2) Investment Policy(3) Results of Investment

P4
P4
P4

3. Status of Investment Assets (General Account)(1) Portfolio of General Account Assets(2) Changes in General Account Assets by Categories(3) Investment Income(4) Investment Expenses(5) Valuation Gains (Losses) on Trading-purpose Securities(6) Fair Value Information on Securities(7) Fair Value Information on Monetary Trusts (General Account)

P.5
P.5
P.6
P.6
P.7
P.7
P.9

4. Non-consolidated Balance Sheets

P.10

5. Non-consolidated Statements of Income

P.11

6. Reconciliation to Core Profit and Non-consolidated Ordinary Profit

P.12

7. Loans by Borrower Category

P.13

8. Risk-monitored Loans

P.13

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

P.14
P.15

10. Status of Separate Account Assets(1) Balance of Separate Account Assets(2) Policy Amount in Force (Separate Account)

P.16
P.16

11. Consolidated Summary(1) Key Performance Indicators(2) Scope of Consolidation and Companies Accounted for under Equity Method(3) Consolidated Balance Sheets(4) Consolidated Statements of Income and Consolidated Statements ofComprehensive Income

P.19(Reference) Holdings of Securitized Papers and Other Sub-prime Related Investments

P.21

1

P.17
P.17
P.18

1. Key Performance Results(1) Policy Amount in Force and New Policy Amount(Millions of yen, %)Policy amount in force
As of September 30, 2010

As of March 31, 2011

As of September 30, 2011

Category
NumberAmount5,116

Individual life insurance

338,020

NumberAmount5,283

Number344,218% YoYchange5,435% change fromMarch 31, 2011

102.9

106.2

Amount% YoYchange350,317% change fromMarch 31, 2011

103.6

101.8

57

3,164

60

3,266

63

109.7

104.8

3,394

107.3

103.9

5,174

341,185

5,344

347,485

5,498

106.3

102.9

353,711

103.7

101.8

Group life insurance―

11,333－

11,987－－－

12,346

108.9

103.0

Group annuities

―

722

－

589

－

－

－

584

80.9

99.2

Individual annuities
Subtotal

Notes:

1. The policy amount in force for individual annuities are equal to the sum of (a) the funds to be held at the time annuity payments are to commence for policies for which annuity payments have not yet
commenced and (b) the amount of policy reserves for policies for which payments have commenced.
2. The policy amount in force for group annuities is equal to the amount of outstanding policy reserves.

(Number: Thousand, Amount: 100 millions of yen, %)New policy amountFor the six months ended September 30, 2010

For the six months ended September 30, 2011

Category
NumberIndividual life insurance
Individual annuities

AmountNew policies

Increase fromconversion

NumberAmount% YoYchange% YoYchangeNew policies

292

20,527

20,527

―

280

95.7

20,33599.1

20,335

－

3

157

157

―

3

121.5

181

115.5

181

－

―

－

295

20,684

20,684283

96.0

20,51799.2

20,517

Group life insurance

―

90

90

－

－

20

22.6

20

Group annuities

―

―

―

－

－

－

－

－

Subtotal

Increase fromconversion

Notes: 1. The new policy amount including increase from conversion for individual annuities is equal to the funds held at the time annuity payments commence.
2. The new policy amount for group annuities is equal to the initial premium payment.

(2) Annualized Premiums(Millions of yen, %)Policy amount in force
Category

As of
September 30, 2010

As ofMarch 31, 2011

As of
September 30, 2011

% YoY change% change fromMarch 31, 2011

Individual life insurance

577,899

592,438

605,293

104.7

102.2

Individual annuities

11,754

12,354

12,710

108.1

102.9

589,653604,793

618,004

104.8

102.2

136,668

140,776

144,793

105.9

102.9

Total
Of which, medical protection
living benefit protection, etc(Millions of yen, %)New policies
Category
Individual life insurance
Individual annuities
Total
Of which, medical protection
living benefit protection, etc

For the six months ended
September 30, 2010

For the six months ended
September 30, 2011

% YoY change

32,593

95.6

34,095
863

688

79.8

34,95833,281

95.2

7,970

8,130

102.0

Notes: 1. Annualized premiums refer to an amount that is calculated by multiplying individual premium amounts by a coefficient that differs depending on the premium payment methods, thereby

converting the figure to a per-year premium. (For lump-sum payment policies, premiums are divided by the number of coverage years.)
2. “Medical protection, living benefit protection, etc” indicates the portion of annualized premiums for medical protection benefits (hospitalization benefits, surgical procedure benefits, etc.) andproducts with living benefit protection (benefits for specific illness, nursing care benefits, etc.).

2

(Millions of yen, %)(3) Major P/L Items
Category

For the six months ended
September 30, 2010

For the six months ended
September 30, 2011

% YoY
ChangeIncome from insurance premiums

371,040

395,732

106.7

Investment income

71,15452,04773.1

Insurance claims and other payments

132,052

137,285

104.0

Investment expenses

27,16029,384

108.2(Millions of yen, %)(4) Total assets
Category
Total assets

As of March 31, 2010

As of September 30, 2011

4,723,332

4,922,545

3% Change fromMarch 31, 2011

104.2

2. Status of Investment Assets (General Account)(1) Investment Environment
During the six months ended September 30, 2011, the Japanese economy experienced significant changes. Real GDP (2ndpreliminary figures1) grew at a rate of negative 0.5% (annualized rate of negative 2.1%) during the April–June quarter, owing
mainly to substantial declines in exports of goods and services and in private-sector capital expenditure, stemming fromsupply problems brought about by the Great East Japan Earthquake. Growth in nominal GDP, a better indicator of conditionsin the real economy, plunged by a negative 1.5% (annualized rate of minus 6.0%), and the GDP deflator, which reflects
changes in the price of goods, was negative 1.0% year on year. However, real GDP in the July–September quarter2 isestimated to have recovered substantially in comparison with the disaster-related drop, triggered mainly by recoveries inexports of goods and services and an upturn in personal consumption.
The Japanese bond market performed steadily. The Japanese economy is seen to have returned to positive growth in theJuly–September quarter, but factors pointing to the potential weakness of this recovery abound. Such factors as sovereign
debt crises in Greece and other European countries, concerns of a slowdown in U.S. economic growth and expectations offurther easing by the Federal Reserve Bank have substantially lowered long-term interest rates in overseas bond markets,
such as in Germany and the United States. These factors have pulled down interest rates in the Japanese bond markets. As an
indicator of these trends, yields on 10-year Japanese government bonds (JGBs) fell from 1.240% on March 31, 2011, to
1.000% on September 30, 2011. At one point after July, yields even dropped below 1%.
Stock market performance was soft. The impact of the Great East Japan Earthquake, concerns about slowing economic
growth overseas, and ongoing yen appreciation in the foreign exchange markets caused growing concern that recovery would
be delayed, particularly among manufacturers. The Nikkei Stock Average, at ¥9,755.10 on March 31, 2011, rose to¥10,207.91 at one point in July before falling back to close at ¥8,700.29 on September 30, 2011. Facing potential losses
owing to the European debt problem, overseas investors grew more risk-averse. Accordingly, foreign investors were net
sellers of Japanese shares, offloading a net ¥1,062.8 billion in August 2011 and ¥754.4 billion in September.
On foreign exchange markets, yen appreciation against the U.S. dollar became more pronounced, rising from ¥83.13 on
March 31, 2011, to ¥77.06 on September 30, 2011. Rapid appreciation of the yen against the U.S. dollar in August prompted
the Bank of Japan to intervene in the foreign exchange markets, selling yen and buying dollars, but the effect of thisintervention was short-lived. Against U.S. monetary easing and the impact of sovereign debt crises in Europe, among thethree major currencies—the yen, the dollar and the euro—the yen alone continued to appreciate.

(2) Investment Policy
Our basic investment policy on general account assets is to create an investment portfolio that generates stable profits overthe medium to long term while considering the soundness of invested assets and their debt characteristics. We secure stableinterest income by investing primarily in Japanese government and corporate bonds. From the perspective of ALM, we strive
to increase the allocation of ultralong-term bonds. Regarding, investment of equity assets, we invest them by controlling theallocation and ensuring a balance between profitability and market risks.

(3) Results of Investment
As of September 30, 2011, general account assets totaled ¥4,529.9 billion, up 4.7%, or ¥204.7 billion, from March 31, 2011.
Within the general account assets, domestic bond investment totaled ¥3,734.7 billion (accounting for 82.4% of total generalaccount assets), foreign bonds ¥59.4 billion (1.3%), Japanese stocks ¥48.1 billion (1.1%), monetary trusts ¥286.7 billion(6.3%), policy loans ¥137.0 billion (3.0%), real estate ¥74.1 billion (1.6%), and cash and deposits and call loans ¥60.9 billion(1.9%).

1 Announced on September 9, 2011
2 Initial preliminary report announcement expected on November 14, 20114

3. Status of Investment Assets (General Account)(1) Portfolio of General Account Assets(Millions of yen, %)Category
Cash and deposits, call loans
Securities repurchased under resale agreements
Pledged money for bond borrowing transaction
Monetary claims purchased
Securities under proprietary accounts
Monetary trusts
Securities
JGBs, other bonds
Japanese stocks
Foreign securities
Bonds
Stocks, etc.
Other securities
Loans
Real estate
Deferred tax assets
Other assets
Reserve for possible loan losses
Total
Of which, foreign-currency-denominated assets

As of March 31, 2011
Amount%80,059――――276,475
3,644,781
3,499,914
64,011
74,24044,21230,027
6,615
134,419
75,162
40,73873,799(228)
4,325,208
27,537

1.9
―
―
―
―
6.4
84.3
80.9
1.5
1.7
1.0
0.7
0.2
3.1
1.7
0.9
1.7
(0.0)
100.0
0.6

As of September 30, 2011
Amount%60,976
1.3
―
―
―
―
―
―
―
―
286,702
6.3
3,875,458
85.6
3,734,732
82.4
48,1291.1
89,2422.0
59,446
1.3
29,796
0.7
3,354
0.1
137,171
3.0
74,126
1.6
29,602
0.7
66,115
1.5
(218)
(0.0)
4,529,934
100.0
42,5020.9

Note: Real estate is the total of land, buildings and construction in progress.

(2) Changes in General Account Assets by Categories(Millions of yen)
Category

For the six months ended
September 30, 2010

Cash and deposits, call loans
Securities repurchased under resale agreements
Pledged money for bond borrowing transaction
Monetary claims purchased
Securities under proprietary accounts
Monetary trusts
Securities
JGBs, other bonds
Japanese stocks
Foreign securities
Bonds
Stocks, etc.
Other securities
Loans
Real estate
Deferred tax assets
Other assets
Reserve for possible loan losses
Total
Of which, foreign-currency-denominated assets(61,511)－－－－(1,126)
293,632
304,114(9,251)(6,734)(7,771)
1,036
5,503
4,301
(721)
(2,975)(23,916)(13)
207,667
870

Note: Real estate is the total of land, buildings and construction in progress.

5

For the six months ended
September 30, 2011
(19,082)－－－－
10,226230,677
234,817(15,881)
15,002
15,233(231)(3,260)2,752(1,036)(11,136)(7,684)
9
204,726
14,964

(3) Investment Income
Category(Millions of yen)
For the six months ended
September 30, 2011

For the six months ended
September 30, 2010

Interest income and dividends

42,338Interest income from deposits

47,47800Interest income and dividends from securities

34,048

39,100Interest income from loans

2,587

2,670

Income from real estate for rent

5,665

5,647

36

60

Other
Gains on securities under proprietary accounts
Income from monetary trusts, net
Income from trading securities, net
Gains on sale of securities

－

－

4,346

2,646

－

－

24,468

1,911

Gains on sale of Japanese bonds

23,726

39

Gains on sale of Japanese stocks

680

1,676

Gains on sale of foreign securities

62

194

Other

－

－

Gains on redemption of securities－－

Gains on derivatives, net－－

Foreign exchange gains, net－－

Reversal of reserve for possible loan losses－－

Other investment income

010

71,15452,047

Total(4) Investment Expenses
Category(Millions of yen)
For the six months ended
September 30, 2011

For the six months ended
September 30, 2010

Interest expenses

27

30

Losses on securities under proprietary accounts－－

Losses on monetary trusts, net－－

Losses on trading securities, net－－

Losses on sale of securities

703

1,528

Losses on sale of Japanese bonds－－

Losses on sale of Japanese stocks

626

1,528

Losses on sale of foreign securities

77

－

Other

－

－

348

866

Devaluation losses on securities
Devaluation losses on Japanese bonds－－

Devaluation losses on Japanese stocks

348

866

Devaluation losses on foreign securities

－

－

Other

－

－

23

－

Losses on redemption of securities
Losses on derivatives, net－－

Foreign exchange losses

163

693

Provision for reserve for possible loan losses

17

6

Write-off loans－－

Depreciation of real estate for rent and others

1,276

1,162

Other investment expenses

3,179

3,257

5,739

7,545

Total

6

(5) Valuation Gains (Losses) on Trading-purpose Securities(Millions of yen)
As of March 31, 2011
Net valuation
gains (losses)
recorded inincomeCategory
Balance sheet amount

Trading-purpose securities

As of September 30, 2011―

Balance sheet amount

Net valuation
gains (losses)
recorded inincome―――Note: The chart above includes trading-purpose securities in "monetary trusts" etc.

(6) Fair Value Information on Securities
a. Fair value information on securities with market value (except trading-purpose securities)(Millions of yen)
As of September 30, 2011

As of March 31, 2011
Net unrealized gains (losses)
Category

Carrying
amountHeld-to-maturity securities

Fair value

Net unrealized gains (losses)

Unrealized Unrealized
gains
lossesCarrying
amountFair value

Unrealized
gains

Unrealized
losses2,914,365

2,892,180(22,184)

25,51847,7033,100,080

3,248,881

148,801

156,386

7,584

Policy reserve matching bonds

―

―

―

―

―

―

―

―

―

―

Stocks of subsidiaries andaffiliated companies

―

―

―

―

―

―

―

―

―

―
3,344

Available-for-sale securities

940,112964,374

24,26130,903

6,642

964,7391,020,835

56,09659,440JGBs, other bonds

884,466

904,194

19,72722,921

3,194

909,874

964,661

54,78754,897

110

Japanese stocks

49,85653,706

3,849

7,207

3,357

36,54637,824

1,278

3,965

2,687

Foreign securities

1,919

1,828

(90)

―

90

16,958

16,823

(135)

411

546

1,919

1,828

(90)

―

90

16,958

16,823

(135)

411

546

―

―

―

―

―

―

―

―

―

―

3,869

4,644

774

774

―

1,360

1,526

166

166

―

Monetary claims purchased

―

―

―

―

―

―

―

―

―

―

Certificates of deposit

―

―

―

―

―

―

―

―

―

―

Others

―

―

―

―

―

―

―

―

―

―

3,854,478

3,856,555

2,077

56,422

54,345

4,064,820

4,269,717

204,897

215,826

10,928Bonds
Stocks, etc.
Other securities

Total
JGBs, other bonds

3,756,448

3,749,943(6,505)44,39250,897

3,967,331

4,174,889

207,558

211,283

3,725Japanese stocks

49,85653,706

3,849

7,207

3,357

36,54637,824

1,278

3,965

2,687

Foreign securities

44,30348,260

3,957

4,048

90

59,581

55,476(4,104)

411

4,516

44,30348,260

3,957

4,048

90

59,581

55,476(4,104)

411

4,516

―

―

―

―

―

―

―

―

―

―

3,869

4,644

774

774

―

1,360

1,526

166

166

―

Monetary claims purchased

―

―

―

―

―

―

―

―

―

―

Certificates of deposit

―

―

―

―

―

―

―

―

―

―

Others

―

―

―

―

―

―

―

―

―

―

Bonds
Stocks, etc
Other securities

Notes:
1. The above table includes assets which are permitted to be treated as equivalent to securities defined in the Financial Instruments and Exchange Law of Japa
2. Carrying amount and net unrealized gains (losses) on monetary trusts, including items other than trading-purpose securities, amounted to ¥268,483 million and ¥18,902 millio
3. Carrying amount represents the amount after deductions for depreciable costs and impairment losses, before mark-to-marke7b. Carrying amounts of securities without market value(Millions of yen)
Category

As of March 31, 2011

As of September 30, 2011

Unlisted domestic stocks (except OTC stocks)――――
15,847
27,582
4――――
15,847
27,1684

Unlisted foreign stocks (except OTC stocks)

1,049

1,072

Unlisted foreign bonds―
26,52843,430―26,09143,016

Held-to-maturity securities
Unlisted foreign bonds
Others
Policy reserve matching bonds
Stocks of subsidiaries and affiliated companies
Available-for-sale securities

OthersTotal

C. Fair Value information consisting of that stated in the previous table-a and foreign exchange and other gains (losses) for table-b(Millions of yen)
As of March 31, 2011
Category

Held-to-maturity securities
Policy reserve matching bonds
Stocks of subsidiaries and affiliated companies
Available-for-sale securities
JGBs, other bonds
Japanese stocks
Foreign securities
Bonds
Stocks, etc.
Other securities
Monetary claims purchased
Certificates of deposit
Others
Total
JGBs, other bonds
Japanese stocks
Foreign securities
Bonds
Stocks, etc
Other securities
Monetary claims purchased
Certificates of deposit
Others

As of September 30, 2011

Net unrealized gains (losses)

Carrying
amountFair value

2,914,365―
15,847
967,695
884,466
49,861
2,969
1,919
1,049
30,397―――
3,897,908
3,756,448
60,16150,90044,303
6,597
30,397―――2,892,180―
15,847
990,829904,194
53,711
2,807
1,828
978
30,116―――
3,898,857
3,749,943
64,01154,78648,2606,526
30,116―――

Unrealized
gains(22,184)――
23,133
19,727
3,849
(162)
(90)
(71)
(281)
―
―
―
949
(6,505)
3,849
3,886
3,957
(71)
(281)
―
―
―

25,518――32,82022,921
7,207
―
―
―
2,691
―
―
―
58,33944,392
7,207
4,048
4,048
―
2,691
―
―
―

8

Unrealized
losses47,703
―
―
9,686
3,194
3,357
162
90
71
2,972
―
―
―
57,38950,897
3,357
162
90
71
2,972
―
―
―

Net unrealized gains (losses)

Carrying
amountFair value

3,100,080―
15,847
991,908
909,874
36,551
18,031
16,958
1,072
27,452―――
4,107,836
3,967,331
46,851
66,201
59,581
6,620
27,452―――

3,248,881―
15,847
1,046,916
964,661
37,82917,946
16,823
1,123
26,479―――4,311,646
4,174,889
48,12962,14755,476
6,671
26,479―――Unrealized
gains

148,801――
55,00854,787
1,278
(84)
(135)
50
(972)
―
―
―
203,809
207,558
1,278(4,054)(4,104)
50
(972)
―
―
―

156,386――
61,741
54,897
3,965
468
411
57
2,409
―
―
―
218,127
211,283
3,965
468
411
57
2,409
―
―
―

Unrealized
losses

7,584
―
―
6,732
110
2,687
553
546
7
3,381
―
―
―
14,317
3,725
2,687
4,523
4,516
7
3,381
―
―
―

(Millions of yen)

(7) Fair Value Information on Monetary Trusts (General Account)
As of March 31, 2011
Category

Monetary trusts

Balance
Fair value
sheet amount
276,475

276,475

As of September 30, 2011

Net unrealized gains (losses)
Unrealized Unrealized
gains
losses―――Balance sheet
Fair value
amount286,702286,702

Net unrealized gains (losses)
Unrealized Unrealized
gains
losses―――Note: The table above includes ¥50 million of jointly invested monetary trusts.

(Millions of yen)

Monetary trusts for investment
As of March 31, 2011
Category

Net valuation gains (losses)
recorded in income

Balance sheet amount

Monetary trusts for investment

As of September 30, 2011―

Balance sheet amount―

Net valuation gains (losses)
recorded in income――

Note: Monetary trusts includes cash and call loans, etc. held in monetary trusts.

(Millions of yen)

Monetary trusts for held-to-maturity and policy reserve matching and other monetary trusts
As of March 31, 2011
Category

Carrying
amountAs of September 30, 2011

Net unrealized gains (losses)
Fair value

Unrealized Unrealized
gains
lossesNet unrealized gains (losses)

Carrying
amountFair value

Unrealized Unrealized
gains
lossesMonetary trusts for held-to-maturity

―

―

―

―

―

―

―

―

―

―

Monetary trusts for policy reserve matching

―

―

―

―

―

―

―

―

―

―

268,610

276,425

7,814

7,814

―

267,749

286,652

18,902

18,902―Other monetary trusts

Note: Monetary trusts includes cash and call loans, etc. held in monetary trusts.

94. Non-consolidated Balance Sheets(Millions of yen)
As of March 31, 2011

As of September 30, 2011

AmountAmountAssets:Cash and deposits
Call loans
Monetary trusts
Securities(Japanese government bonds)(Japanese municipal bonds)(Japanese corporate bonds)(Japanese stocks)(Foreign securities)
Loans
Policy loans
Commercial loans
Tangible fixed assets
Intangible fixed assets
Due from reinsurers
Other assets
Deferred tax assets
Reserve for possible loan losses
Total Assets

35,10368,500276,475
4,017,583
3,548,082
11,32870,61092,691
192,328
134,419
134,419

Liabilities:
Policy reserves and others
Reserve for outstanding claims
Policy reserves
Reserve for policyholders' dividends
Due to agencies
Due to reinsurers
Other liabilities
Accrued income tax
Lease obligations
Asset retirement obligations
OthersReserve for employees' retirement benefits
Reserve for directors' retirement benefits
Reserve for price fluctuations
Reserve for price fluctuations
Deferred tax liabilities on land revaluation
Total Liabilities
Net Assets:
Common stock
Capital surplus
Capital reserve
Retained earnings
Earned reserve
Other retained earnings
Unappropriated retained earnings for the period
Total shareholders' equity
Net unrealized gains on other securities, net of taxes
Land revaluation, net of taxes
Total valuation and translation adjustments
Total Net Assets
Total Liabilities and Net Assets

10

29,75755,600286,7024,237,735

76,014
18,39084
56,25040,738(228)
4,723,332

3,805,104
11,35456,71567,436
202,973
137,171
137,091
79
74,911
20,152
211
50,91929,602(218)
4,922,545

4,404,576
28,252
4,371,484
4,839
1,502
684
65,98019,482284
633
45,58017,596143
16,768
16,768693

4,600,233
23,2204,572,342
4,670
1,415
552
37,472
9,618
273
635
26,945
18,962
155
20,644
20,644693

4,507,945

4,680,130

70,0005,865
5,865
134,008
11,418
122,590
122,590
209,873
7,013(1,499)5,513
215,387
4,723,332

70,0005,865
5,865
140,572
13,238
127,333
127,333
216,437
27,477(1,499)25,977
242,414
4,922,545

5. Non-consolidated Statements of Income(Millions of yen)
For the six months ended
September 30, 2010

For the six months ended
September 30, 2011

AmountOrdinary Revenues
Income from insurance premiums

Amount444,383
371,040
370,019
71,15442,3384,346
24,4682,188
394,344
132,052
35,576
3,602
15,95375,039824
179,363
1,404
177,949
8
27,16027703
348
21,42049,070
6,698
50,039
3,736
15
0
3,430
3,430

(Insurance premiums)
Investment income(Interest income and dividends)(Income from monetary trusts, net)
(Gains on sale of securities)
Other ordinary income
Ordinary Expenses
Insurance claims and other payments(Insurance claims)(Annuity payments)(Insurance benefits)(Surrender payments)(Refund to policyholders)
Provision for policy reserves and others
Provision for reserve for outstanding claims
Provision for policy reserves
Interest on policyholders' dividend reserve
Investment expenses(Interest expenses)(Losses on sale of securities)(Devaluation losses on securities)(Losses on separate accounts, net)
Operating expenses
Other ordinary expenses
Ordinary Profit
Extraordinary Losses
Losses on disposal of fixed assets
Impairment losses
Provision for reserve for price fluctuations
Provision for reserve for price fluctuations
Cumulative effect on application of accounting standard
for asset retirement obligations
Provision (Reversal) for reserve for policyholders' dividends
Income Before Income Taxes
Income Taxes -current
Income Taxes -deferred
Total Income Taxes
Net Income

11454,871395,732
395,471
52,04747,478
2,646
1,911
7,092
426,277
137,285
36,3603,913
16,264
78,637
1,106
200,866
200,858
7
29,38430
1,528
866
21,83851,576
7,165
28,593
3,892
16
0
3,875
3,875

290

-

345
45,956
19,501(2,529)16,972
28,983(37)
24,738
9,588
(513)
9,075
15,663

6. Reconciliation to Core Profit and Non-consolidated Ordinary Profit(Millions of yen)
For the six months ended
September 30, 2010
Core profit

A

Capital gains
Income from monetary trusts, net

For the six months ended
September 30, 2011

26,846

31,68526,090

1,911

1,622

―

Income from trading securities, net――

Gains on sale of securities

24,468

1,911

Gains on derivatives, net――

Foreign exchange gains, net――

Other capital gains

―

―

1,215

3,088

―

―

Capital losses
Losses on monetary trusts, net
Losses on trading securities, net――

Losses on sale of securities

703

1,528

Devaluation losses on securities

348

866

Losses on derivatives, net――

Foreign exchange losses, net

163

693

―

―

Net capital gains (losses)

Other capital losses
B

24,875(1,176)

Core profit plus net capital gains (losses)

A+B

51,72230,509――Gains from reinsurance――

Reversal of contingency reserve――

Reversal of specific reserve for possible loan losses――

Other one-time gains

OthersOther one-time losses

―

―

1,683

1,915

Losses from reinsurance
Provision for contingency reserve

―

―

1,665

1,769

Provision for specific reserve for possible loan losses

17

6

Provision for reserve for loan losses from borrowers in specific foreign countries――

Write-off of loans――

OthersNet other one-time losses
Ordinary profit

―

139

C

(1,683)(1,915)

A+B+C

50,03928,593

Notes:
1.Core profit for the six months ended September 30, 2010 (A) includes income gains of ¥2,724 million in income from monetary trusts.
2.Core profit for the six months ended September 30, 2011 (A) includes income gains of ¥2,646 million in income from monetary trusts;"Others" of other one-time losses includes additional provision of policy reserves of ¥139 million.

127. Loans by Borrower Category(Millions of yen, %)Category

As of September 30, 2011

As of March 31, 2011

Bankrupt and quasi-bankrupt loans
Doubtful loans
Sub-standard loans
Sub-total[% to total]
Normal loans
Total

－
－
－
－
[－]
136,809
136,809

Notes:
1. Bankrupt and quasi-bankrupt loans are loans to borrowers who are subject to bankruptcy, corporate reorganization or rehabilitation or other similar proceedings andother borrowers in serious financial difficulties.
2. Doubtful loans are loans to obligors (other than bankrupt and quasi-bankrupt obligors) with deteriorated financial condition and results of operations from which it isunlikely that the principal and interest on the loans will be recovered.
3. Sub-standard loans are loans on which principal and/or interests are past due for three months or more and loans with a concessionary interest rate, as well as loans
with renegotiated conditions in favor of the borrower, including renegotiated schedule and/or waivers, in each case, other than the loans described in notes 1. and 2. above.
4. Normal loans are all other loans.

8. Risk-monitored Loans
Not applicable

13

－
－
－
－
[－]
139,578
139,578

14

9. Solvency Margin Ratio(Millions of yen)
Category
Total solvency margin

As of March 31, 2011

(A)

As of September 30, 2011

690,331756,948

Common stock, etc.

200,773

216,437

Reserve for price fluctuations

16,76820,644

Contingency reserve

51,55953,32800

Net unrealized gains on other securities multiplied by 90% if gains or 100% if losses

20,82049,507Net unrealized gains on real estate multiplied by 85% if gains or 100% if losses

1,002

1,002

Excess amount of policy reserves based on Zillmer method

334,201

342,141

Unallocated portion of reserve for policyholders' dividends

1,186

977

628

628

Deferred tax assets

63,38872,280Subordinated debt

－

－

－

－

47,60648,090General reserve for possible loan losses

Future profits

Deductible items
Total risk

(R1  R8 )  (R2  R3  R7 )  R4
2

2

(Ｂ)

Insurance risk

R1

20,014

20,417

Third-sector insurance risk

R8

7,269

7,411

Assumed interest rate risk

R2

11,573

11,723

Asset management risk

R316,822

16,381Business management risk

R4

1,294

1,308

Minimum guarantee risk

R7

9,025

9,499

2,900.1%

3,148.0%

Solvency margin ratio
(A)
x 100
(1/2) x (B)Notes: 1. The foregoing figures were calculated based on provisions in Articles 86 and 87 of the Ordinance for Enforcement of the Insurance Business Law
and the Ministry of Finance Public Notice No. 50 of 1996.
2. Minimum guarantee risk was calculated based on the standardized approach.

15

(Reference) Solvency Margin Ratio Based on New Standard(Millions of yen)
Category
Total solvency margin

As of March 31, 2011

(A)

As of September 30, 2011

625,790

705,564

Common stock, etc.

200,773

216,437

Reserve for price fluctuations

16,76820,644

Contingency reserve

51,55953,32800

Net unrealized gains on other securities multiplied by 90% if gains or 100% if losses

20,82049,507Net unrealized gains on real estate multiplied by 85% if gains or 100% if losses

1,002

1,002

Excess amount of policy reserves based on Zillmer method

334,201

342,141

Unallocated portion of reserve for policyholders' dividends

1,186

977

Deferred tax assets

63,38872,280Subordinated debt－－

(63,912)(50,754)－－

72,76372,715General reserve for possible loan losses

The portion of the excess amount of policy reserves based on Zillmer method andsubordinated debt that is not included in the margin
Deductible items
Total risk

(Ｂ)

(R1  R8 )  (R2  R3  R7 )  R4
2

2

Insurance risk

R1

20,014

20,417

Third-sector insurance risk

R8

7,269

7,411

Assumed interest rate risk

R227,902

28,217

Asset management risk

R3

28,72628,099Business management risk

R4

1,854

1,859

Minimum guarantee risk

R7

8,820

8,845

1,720.0%

1,940.6%

Solvency margin ratio
(A)
x 100
(1/2) x (B)Note: Cabinet Office Ordinance No. 23 (2010) and FSA Notification No.48 (2010) prescribe a revision in the methods of calculating total solvency margin andtotal risk (increasing the strictness of margin inclusion, and making risk measurement stricter and more sensitive). These changes are to be applied fromthe end of fiscal 2011. The above-stated figures are calculated on the assumption that these changes are applied at the end of March 31 and September 30,
2011.

16

10. Status of Separate Account Assets(1) Balance of Separate Account Assets(Millions of yen)
Category

As of March 31, 2011

Individual variable life insurance and individual variable annuities

As of September 30, 2011

398,124392,611――398,124392,611

Group annuities
Total separate accountNote: Assets relating to individual variable life insurance and individual variable annuities are jointly invested at Sony Life.

(2) Policy Amount in Force (Separate Account)(Number: Thousand, Amount: Millions of yen)

Individual variable life insurance
As of March 31, 2011

Category

NumberAs of September 30, 2011

AmountNumberAmountVariable life insurance (whole life type)534

6,826,136

544

6,905,629

Variable life insurance (limited term type)43

143,89343

144,212

Variable life insurance (term type)1

52,867

1

50,726579

7,022,897

588

7,100,567

Total
Note: Amounts include the rider portion of variable life insurance.

Individual variable annuities(Number: Thousand, Amount: Millions of yen)
As of March 31, 2011

Category

NumberIndividual variable annuities

As of September 30, 2011

Amount28

154,322

NumberAmount28

152,740

Note: The amount of individual variable annuities is equal to the sum of (a) the funds to be held at the time annuity payments are to commence for policies for which annuity
payments have not yet commenced and (b) the amount of policy reserves for policies for which payments have commenced.

1711. Consolidated Summary(1) Key Performance Indicators(Millions of yen)
Category

For the six months ended
September 30, 2010

For the six months ended
September 30, 2011

Ordinary Revenues

444,530

454,987

Ordinary Profit

49,59428,141Net Income

28,53815,219Comprehensive Income

37,58035,627

Category

As of March 31, 2011

Total assets

As of September 30, 2011
4,721,641

4,920,360(2) Scope of Consolidation and Companies Accounted for under Equity Method
Number of consolidated subsidiaries

1

Number of non-consolidated subsidiaries accounted for under equity method0

Number of affiliated companies accounted for under equity method218

(3) Consolidated Balance Sheets(Millions of yen)
As of September 30, 2011
AmountAs of March 31, 2011
AmountAssets:Cash and deposits

35,57830,394

Call loans

68,50055,600

Monetary trusts

276,475

286,702

4,015,294

4,234,784

Loans

134,439

137,192

Tangible fixed assets

76,02974,924

Intangible fixed assets

18,391

20,153

Securities

Due from reinsurers

84

211

Other assets

56,31450,981

Deferred tax assets

40,761(228)

29,633(218)

4,721,641

4,920,360

4,404,830

4,600,498

28,26023,223

4,371,731

4,572,605

4,839

4,670

Due to agencies

1,502

1,415

Due to reinsurers

684

553

Other liabilities

66,01837,503

Reserve for employees' retirement benefits

17,59918,967

Reserve for possible loan losses
Total Assets
Liabilities:
Policy reserves and others
Reserve for outstanding claims
Policy reserves
Reserve for policyholders' dividends

Reserve for directors' retirement benefits

143

155

16,76820,644

Reserve for price fluctuations

16,76820,644

Deferred tax liabilities on land revaluation

693

693

4,508,240

4,680,432

70,00070,000Reserve for price fluctuations

Total Liabilities
Net Assets:
Common stock
Capital surplus

5,865

5,865

Retained earnings

132,370

138,490

Total shareholder's equity

208,235

214,355

Net unrealized gains on other securities, net of taxes

6,996(1,499)27,417(1,499)

(331)

(345)

Land revaluation, net of taxes
Foreign currency translation adjustments
Total accumulated other comprehensive income
Total Net Assets
Total Liabilities and Net Assets

19

5,165

25,573

213,401

239,928

4,721,641

4,920,360

(4) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
For the six months ended
September 30, 2010

For the six months ended
September 30, 2011

AmountAmountOrdinary Revenues

444,530

454,987

Income from insurance premiums

371,073395,771

Investment income

71,26842,427

52,12347,535(Interest income and dividends)(Income from monetary trusts, net)

4,346

2,646

(Gains on sale of securities)

24,492

1,930

Other ordinary income

2,188

7,092

Ordinary Expenses

394,936

426,845

Insurance claims and other payments

132,056

137,299(Annuity payments)

35,577
3,602

36,365
3,913(Insurance benefits)

15,953

16,264(Surrender payments)

75,04178,644

179,383

200,882(Insurance claims)

Provision for policy reserves and others
Provision for reserve for outstanding claims

1,406

Provision for policy reserves

177,969

Interest on policyholders' dividend reserve
Investment expenses(Interest expenses)(Losses on sale of securities)

200,8748

7

27,16029,403

27
703

30
1,528

(Devaluation losses on securities)

348

866

(Losses on separate accounts, net)

21,42021,83849,15251,657

Operating expenses
Other ordinary expenses

7,183

7,602

Ordinary Profit

49,59428,141

0

0

0
3,736

0
3,892

Losses on disposal of fixed assets

15

16

Impairment losses

0

0

3,430

3,875

Provision for reserve for price fluctuations

3,430

3,875

Cumulative effect on application of accounting
standard for asset retirement obligations

290

Extraordinary Gains
Gains on disposal of fixed assets
Extraordinary Losses

Provision for reserve for price fluctuations

Provision (reversal) for reserve for policyholders' dividends

-

345

(37)

Income Before Income Taxes

45,511

24,286

Income Taxes -current

19,501

9,588

Income Taxes -deferred(2,529)16,972

9,066

Total Income Taxes(521)

Income Before Minority Interests

28,53815,219Net Income

28,53815,21920

(Consolidated Statements of Comprehensive Income)(Millions of yen)
For the six months ended
September 30, 2010

For the six months ended
September 30, 2011

AmountAmountIncome Before Minority Interests

28,53815,219Other Comprehensive Income
Net unrealized gains on other securities, net of taxes

9,041
9,154

20,407
20,423Foreign currency translation adjustments

(110)

(13)

(2)

(2)

37,58035,627

Share of other comprehensive income of affiliates
accounted for using equity method
Comprehensive Income
Comprehensive income attributable to parent company

37,580Comprehensive income attributable to minority interests

35,627-21-

(Reference)
Holdings of Securitized Papers and Other Sub-prime Related Investments
Sony Life’s holdings of securitized papers and other sub-prime related investments as of September 30, 2011, are as follows.
Sony Life holds no sub-prime related investments.
(1) Special-purpose entities (SPEs)
Unrealized
gains (losses)
－
－
－
－
－
－
－

Fair value
－
－
－
－
－
－
－

Special purpose entities (SPEs)
ＡＢＣＰ
facilitated by Sony Life
ＳＩＶ
facilitated by Sony Life
Other
facilitated by Sony Life(100 millions of yen)
Gains (losses)
recorded in income
－
－
－
－
－
－
－

(2) Collateralized debt obligations (CDO)

Fair value
Collateralized debt obligations (CDO)
ABS
CDO
Seniorsub-prime (Alt-A exposure)
Mezzanine
sub-prime (Alt-A exposure)
Equitysub-prime (Alt-A exposure)
CLO

SeniorMezzanine
EquityCBO

SeniorMezzanine
EquityOther

SeniorMezzanine
Equity

22

－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

(100 millions of yen)
Gains (losses)
Unrealizedrecorded ingains (losses)
income
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

(3) Other sub-prime (Alt-A exposure)
Fair value
－
－
－
－
－
－

Other sub-prime (Alt-A exposure)Non-securitized loans
RMBS
Derivatives
Commitment line
Other

Unrealized
gains (losses)
－
－
－
－
－
－

(100 millions of yen)
Gains (losses)
recorded in income
－
－
－
－
－
－

Unrealized
gains (losses)
－
－
－
－
－
－

(100 millions of yen)
Gains (losses)
recorded in income
－
－
－
－
－
－

Unrealized
gains (losses)
－
－
－
－
－
－

(100 millions of yen)
Gains (losses)
recorded in income
－
－
－
－
－
－

(4) Commercial mortgage-backed securities (CMBS)
Fair value
As of March 31, 2011

Commercial mortgage-backed securities (CMBS)
Japan
USA
EU
UK
Other

－
－
－
－
－
－

－
－
－
－
－
－

(5) Leveraged financeFair value
As of March 31, 2011

Leveraged financeCommunications
Electronics
Entertainment
Services
Other

－
－
－
－
－
－

－
－
－
－
－
－

(6) Other notes
Sony Life holds principal protected 30 year notes with Nikkei 225 index linked coupon (fair market value of ¥38.6 billion andunrealized losses of ¥3.9 billion as of September 30, 2011). These amounts are included in “Net unrealized gains(losses) on other securities, (before taxes)” of Sony Life as of September 30, 2011.

23