August 9, 2018
Sony Financial Holdings Inc.

Summary Information on Sony Assurance’s Financial Results
for the Three Months Ended June 30, 2018
<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. Non-consolidated Solvency Margin Ratio

P.6

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1. Balance Sheets(Millions of yen)
As of March 31, 2018

As of June 30, 2018

Assets:Cash and deposits

23,77820,926

Securities

145,349

150,090

Tangible fixed assets

2,407

2,149

Intangible fixed assets

6,196

6,908

Other assets

17,14915,745

Deferred tax assets

9,480

9,694

204,362

205,513

156,612160,400

Reserve for outstanding losses and claims

39,53539,550Underwriting reserves

117,077

120,849

11,553

9,476

Income taxes payable

2,363

1,294

Others

9,190

8,181

Reserve for employees’ retirement benefits

1,667

1,716

Reserve for employees’ bonuses

1,132560

Reserve under the special laws

206

214

Reserve for price fluctuations

206

214

171,173

172,367

Common stock

20,00020,000Capital surplus

3,389

3,389

Retained earnings

7,872

8,182

Total shareholders’ equity

31,261

31,572Net unrealized gains (losses) on other securities,
net of taxes

1,927

1,574

Total valuation and translation adjustments

1,927

1,574

33,18933,146204,362

205,513

Total Assets
Liabilities:
Underwriting reserves

Other liabilities

Total Liabilities
Net Assets:
Shareholders’ equity

Valuation and translation adjustments

Total Net AssetsTotal Liabilities and Net Assets

22. Statements of Income(Millions of yen)
For the three months ended
June 30, 2017
Ordinary Revenues

For the three months ended
June 30, 2018

28,04329,702

27,571

29,06727,556

29,051

15

16

453

622

Interest income and dividends

334

340

Gains on sale of securities

134

297

Transfer to interest and dividends on deposits of premiums

(15)

(16)

18

12

25,66825,900Underwriting expenses

19,00019,310Net losses paid

12,18013,076

Loss adjustment expenses

1,824

1,963

Net commissions and brokerage fees

492483Provision for reserve for outstanding losses and claims

366

15

4,137

3,771

6,666

6,590

00

2,375

3,801

Extraordinary Gains－－

Extraordinary Losses

7

10Losses on sale or disposal of fixed assets－2

Provision for reserve under the special laws

7

7

Provision for reserve for price fluctuations

7

7

2,368

3,790

Income Taxes –Current

884

1,144

Income Taxes –Deferred

(202)

(76)

Total Income Taxes

681

1,068

1,686

2,722

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

Other ordinary income
Ordinary Expenses

Provision for underwriting reserves
Operating, general and administrative expenses
Other ordinary expenses
Ordinary Profit

Income Before Income Taxes

Net Income3

3. Financial Summary (Year-on-Year Comparison)(Millions of yen)
For the three months
ended
June 30, 2017

For the three months
ended
June 30, 2018

Change(Amount)

Change(%)

Gross direct premiums written

27,26028,802

1,541

5.7 %

Direct premiums written

27,26028,802

1,541

5.7

27,571

29,067

1,495

5.4

27,556

29,051

1,494

5.4

Underwriting expenses

19,00019,3103091.6Net losses paid

12,18013,076895

7.4

Loss adjustment expenses

1,824

1,963

139

7.6

492

483

(9)

(1.9)

453

622

168

37.2

Interest income and dividends

334

340

5

1.8

Gains on sale of securities

134

297

163

121.9

－

－－

－

6,666

6,590

(76)

(1.1)

6,651

6,574

(76)

(1.2)

17

12(5)

(31.8)

2,375

3,801

1,425

60.0

1,918

3,182

1,263

65.9

Extraordinary Gains－－－－

Extraordinary Losses

7103

42.6

Extraordinary gains (losses), net(7)

(10)

(3)

－

2,368

3,790

1,422

60.1

Income Taxes –Current

884

1,144

260

29.5

Income Taxes –Deferred(202)

(76)

126

－Total Income Taxes

681

1,068

387

56.8

Net Income

1,686

2,722

1,035

61.4

Net loss ratio

50.8%

51.8%

Net expense ratio

25.9%

24.3%

Underwriting income
Net premiums written

Net commissions and brokerage fees
Investment income

Investment expenses
Operating, general and administrative expenses

Operating, general and administrative
expenses related to underwriting
Other ordinary income (losses), net
Ordinary profit
Underwriting profit

Income Before Income Taxes

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 related to underwriting) / Net premium written x 10044. Premiums and Losses Paid by Type of Policy
Direct Premiums Written(Millions of yen)
For the three months ended
June 30, 2017
AmountComposition

For the three months ended
June 30, 2018

YoY Change%

Fire

52

AmountComposition%

0.2(15.4)

YoY Change%

54%

0.2

4.2

－

－－－－－

Personal accident

2,178

8.0(0.6)

2,163

7.5(0.7)

Voluntary automobile

25,02991.8

11.1

26,583

92.3

6.2－－－－－－

27,260

100.0

10.0

28,802100.0

5.7

MarineCompulsory automobile liabilityTotal

Net Premiums Written(Millions of yen)

For the three months ended
June 30, 2017
AmountComposition

For the three months ended
June 30, 2018

YoY Change%

Fire40.0

AmountComposition%(40.6)YoY Change%

4%

0.0

16.5(0)

(0.0)

－－－－

Personal accident

2,229

8.1

(2.3)

2,221

7.6

(0.4)

Voluntary automobile

24,96990.6

11.1

26,524

91.3

6.2

MarineCompulsory automobile liability

352

1.3

20.4

300

1.0(14.8)

Total

27,556

100.0

10.0

29,051

100.0

5.4

Net Losses Paid(Millions of yen)

For the three months ended
June 30, 2017
AmountYoY Change

For the three months ended
June 30, 2018

Net loss ratio%Fire0Marine
Personal accident
Voluntary automobile

AmountYoY Change%

43.3

236.6

Net loss ratio
%

1

62.7

%
236.4

2－－

1

(26.8)

－

645

5.9

32.2

691

7.1

34.3

51.9

12,052

7.4

52.5

11,2193.8

Compulsory automobile liability

311

(3.7)

88.4

329

5.5

109.5

Total

12,1803.8

50.8

13,076

7.4

51.8

5

5. Non-consolidated Solvency Margin Ratio(Millions of yen)(A) Total non-consolidated solvency margin
Capital or treasury, etc.
Reserve for price fluctuations

As of March 31, 2018

As of June 30, 2018

54,24458,51928,84931,572

206

214

Contingency reserve

109

112

Catastrophe reserve

20,97021,896

－

－

2,409

1,967

General reserve for possible loan losses
Net unrealized gains on other securities and net deferred gains(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 subordinateddebt that is not included in the margin
Deductible items－－－－Others(B) Total non-consolidated risk

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

－－

1,698

2,757

13,871

14,12812,395

12,644

Ordinary insurance risk

(R1)

Third-sector insurance risk

(R2)

－－

Assumed interest rate risk

(R3)

114

116

Asset management risk

(R4)

1,712

1,745

Business management risk

(R5)

305

310

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

1,036

1,036

782.1 %

828.4 %[(A)／{(B)×1/2}]×100

Note: The above figures were calculated based on the 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.
A part of calculations for non-consolidated solvency margin ratio as of June 30, 2018 is calculated according to simplified methods
in major catastrophe risk. The figure is assumed to be equivalent to the amount as of March 31, 2018.
<Non-consolidated Solvency Margin Ratio>
Non-life insurance companies maintain reserves to ensure their ability to pay claims when accidents occur and return contracted amountsat maturity on savings-type insurance. Non-life insurance companies must also maintain sufficient ability to cover against risk events
which exceed its normal estimates, i.e. occurrence of a major catastrophe or a dramatic drop in the value of the assets they hold.
Total risk (item (B) in the table) indicates risk events which exceed the normal estimates. The non-consolidated solvency margin ratio(item (C) in the table) is an indicator of an insurer’s ability to pay, calculated as prescribed by the Insurance Business Act of Japan,based on its percentage holdings of capital and other reserves (in other words, the total non-consolidated solvency margin, as indicatedby (A) ).
“Risk events which exceed the normal estimates” refers to the total of the amounts represented by the following risks:(1) Insurance underwriting risk
: Risk which exceeds the normal estimates for the rate of accident occurrence(Ordinary insurance risk)(excluding major catastrophe risk)(Third-sector insurance risk)(2) Assumed interest rate risk
: Risk that actual investment yields will fall below the investment yield assumed whencalculating premiums(3) Asset management risk
: Risk arising from such factors as unexpectedly large fluctuations in prices on held
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 theIse Bay Typhoon)

A non-life insurer’s ability to pay (total non-consolidated 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 reservefor price fluctuations and catastrophe reserve) and a portion of its net unrealized gains on real estate.
The non-consolidated solvency margin ratio is one of the objective indicators used by the insurance regulatory authorities to supervise insurers.
When this ratio is 200% or higher, an insurer is judged to have sufficient ability to satisfy claims and other payments.

6