Content

Consolidated ordinary revenues increased 1.4% year on year, to ¥1,036.1 billion, owing
to increases in ordinary revenues from the life insurance and the non-life insurance
businesses, whereas ordinary revenues from the banking business decreased.
Consolidated ordinary profit decreased 24.3% year on year, to ¥57.4 billion, owing todecreases in ordinary profit from all the businesses: life insurance, non-life insurance
and banking.
parent was down 24.3%% yyear on yyear,, to ¥38.2
Profit attributable to owners of the pbillion due to the decrease in ordinary profit.

Sony Life’s ordinary revenues increased 1.3% year on year, to ¥937.2 billion,
mainly due to a rise in income from insurance premiums despite lower investment
performance in the separate account compared with the previous period’s
favorable performance, driven by strong financial market conditions.
Ordinary profit decreased 26.9% year on year, to ¥49.0 billion. This is due to a
substantial increase in provision of policy reserves for minimum guarantees forvariable life insurance as a result of an increase in new policy amount andworsened financial market conditions, partially offset by an increase in gains onsale of securities in the general account. Moreover, increased expenses incurredby strong sales of new policies and higher payment on insurance claims also
contributed to the decrease in profit.
Net income decreased 27.3% year on year, to ¥32.8 billion.

(Left-hand graph)
New policy amount for the total of individual life insurance and individual annuities
increased 12.0% year on year, to ¥4,052.4 billion, reflecting a record-high newpolicy amount for the nine months.
This increase was because of higher sales of variable life insurance and family
income insurance reflecting the efforts to strengthen sales of death protection
typeyp pproducts. Sales of variable annuities also increased.
Especially, the sales of variable life insurance increased due to the brisk demandprior to the product revisions.
The number of new policies increased 8.3% year on year, to 501 thousand
policies.
(Right-hand graph)
Annualized premiums from new policies increased 13.4% year on year, to ¥65.8
billion, due to higher sales of variable life insurance and variable annuities.
Of which, the figure for third-sector insurance products was up 3.2% year onyear, to ¥12.0 billion.

Sony Life’s policy amount in force which reflects new policy amount and lapse
and surrender amount, is shown here.
(Left-hand graph)
Policy amount in force for the total of individual life insurance and individualannuities increased 5.5% year on year, to ¥42.8 trillion, due to strong sales of
new policies.
The number of policies in force increased 5
5.8%
8% year on yearyear, to ¥6¥6.98
98 million
polices.
(Right-hand graph)
Annualized premiums from insurance in force increased 6.2% year on year, to¥771.8 billion. Of which, the figure for third-sector products was up 3.8% year onyear, tot ¥178.3¥178 3 billibillion.

The lapse and surrender rate decreased 0.40 percentage points year on year, to3.60%.

(Left-hand graph)
Income from insurance premiums increased 11.8% year on year, to ¥754.8billion. This increase was because of strong sales of variable life insurance anda new product, “Lump-sum Payment Whole Life Insurance (Non-notificationtype), launched in May 2015, in addition to steady growth in policy amount inforce.
(Right-hand graph)
Interest income and dividends increased 6.0% year on year, to ¥105.5 billion,
reflecting an expansion in investment assets along with business expansion.

(Left-hand graph)Core profit was down 42.1% year on year, to ¥35.1 billion, due to a substantial
increase in provision of policy reserves for minimum guarantees for variable life
insurance as a result of an increase in new policy amount and worsened financial
market conditions despite higher positive spread.
Moreover, increased expenses incurred by strong sales of new policies and higher
payment on insurance claims also contributed to the decrease in profit.
(Right-hand graph)
Ordinary profit decreased 26.9% year on year, to ¥49.0 billion, due to the decrease incore profit despite an increase in gains on sale of securities in the general account.

The number of Lifeplanner sales employees as of December 31, 2015, was 4,376,
down 39 from September 30, 2015.
Since Sony Life does not hire new Lifeplanner sales employees in December, inaddition to promoting Lifeplanner sales employees to office manager in October, thenumber of Lifeplanner sales employees as of the end of December tends to belower than that as of the end of September every year.
psales employees
p ysteadilyy increased,, up
p 160
However,, the number of Lifeplannerfrom a year earlier.
Sony Life’s recruiting of Lifeplanner sales employees in January 2016 was alsosuccessful.

Here is a breakdown of Sony Life’s general account assets as of December 31,
2015 compared2015,
d withith ththatt as off MMarchh 31
31, 2015
2015.
Sony Life continued to invest in ultralong-term bonds.

As of December 31, 2015, Sony Life’s non-consolidated solvency margin ratio
was 2,757.0%, up 202.0 percentage points from March 31, 2015, remaining at ahigh level.

At AEGON Sony Life Insurance, which sells individual variable annuities, newpolicy amount decreased year on year.

Sony Assurance’s ordinary revenues increased 4.1% year on year, to ¥72.7 billion,
due to an increase in net premiums written primarily for its mainstay automobile
insurance.
Ordinary profit decreased 14.6% year on year, to ¥3.8 billion, mainly due to a risein operating expenses such as advertising expenses despite the increase inordinary revenues.
% yyear on yyear,, to ¥2.1 billion,, owing
g to the recordingg
Net income decreased 32.2%
of a ¥0.8 billion loss on disposal of software in progress as an extraordinary loss.

(Left-hand graph)
The number of policies in force for the total of automobile insurance and medical
and cancer insurance increased 5.9% year on year, to 1.77 million policies.
Net premiums written increased 4.1% year on year, to ¥71.7 billion, due to astable sale of automobile insurance.
(Ri h h d graph)(Right-handh)
Ordinary profit decreased year on year as described before.
Adjusted ordinary profit is an profit indicator on a managerial accounting basis.
The figure is calculated by adjusting the amount of provision(reversal) for
catastrophe reserve to ordinary profit.
Adjusted ordinary profit was ¥6.0 billion.

(Left-hand graph)
The Earned/Incurred (E.I.) loss ratio decreased 0.4 percentage points year onyear, to 63.1%, reflecting persistently low car accident ratio.
The net expense ratio rose 1.3 percentage points year on year, to 26.6%, mainly
due to higher advertising expenses.
Consequently, the sum of the E.I. loss ratio and the net expense ratio was up 0.9
percentage points year on year,year to 89
89.7%.
7%(Right-hand graph)
The net loss ratio was up 0.6 percentage points year on year, to 56.8%. This isdifferent from the E.I. loss ratio, which reflects an increase or a decrease inprovision for reserve for outstanding losses.
The combined ratio (the sum of the net loss ratio and the net expense ratio) wasup 1.9 percentage points year on year, to 83.4%.

As of December 31, 2015, Sony Assurance’s non-consolidated solvency margin
ratio was 695.6%, up 66.0 percentage points from March 31, 2015.

Sony Bank’s consolidated ordinary revenues decreased 1.0% year on year, to¥28.1 billion and consolidated ordinary profit decreased 12.2% year on year, to ¥4.6billion.
This is because of a decline in gains on sale of bonds despite higher revenues
related to mortgage loans and foreign currency transactions.
On a nonnon-consolidated
consolidated basis
basis, Sony Bank’s
Bank s ordinary revenues and ordinary profit
decreased year on year as the same reasons as in the consolidated results.
Gross operating profit decreased 2.2% year on year, to ¥16.2 billion, reflecting adecrease in net other operating income due to a decline in gains on sale of bonds
despite an improvement in net fees and commissions backed by higher fees onmortgage loans.
Net operating profit decreased 13
13.1%1% year on yearyear, to ¥4¥4.6
6 billion
billion.

We break down gross operating profit on a managerial accounting basis tofacilitate an understanding of operational sources of revenues and profits.
(Left-hand table)
Net interest income increased 2.2% year on year, to ¥13.9 billion, led by thegrowing balance of mortgage loans.
Net fees and commissions increased 88.1% year on year, to ¥0.7 billion, due tohigher fees on mortgage loans
loans.
Consequently, gross operating profit on a core profit basis increased 4.7% yearon year, to ¥14.7 billion, and net operating profit on a core profit basis also
increased 11.4% year on year, to ¥3.1 billion.
(Right-hand graph)
The yield on investment for FY15.3Q was 1.19%.
The yield on financing for FY15.3Q was 0.26%.
Consequently, interest spread for FY15.3Q was 0.93%.

(Left-hand graph)
As of December 31, 2015, deposits (the sum of Japanese yen and foreign
currency deposits) amounted to ¥1,866.4 billion, down ¥11.8 billion from March31, 2015. Of which, yen deposit balance amounted to ¥1,538.5 billion, down
¥12.5 billion from March 31, 2015, reflecting severe interest rate competitions foryen time deposits in the first half.
The yyen-denominated balance of foreign
g currency
y depositspamounted to ¥327.9billion, up ¥0.6 billion from March 31, 2015, due to higher foreign currency
purchases, driven by rising market sentiment that yen depreciation had nearly
stopped.
(Right-hand graph)
Loan balance as of December 31
31, 2015 expanded to ¥1¥1,293.6
293 6 billion
billion, up ¥106
¥106.44billion from March 31, 2015, due to the growing balance of mortgage loans.

(Left-hand graph)
As of December 31, 2015, the balance of securities amounted to ¥624.7 billion,down ¥105.2 billion from March 31, 2015.
Sony Bank continuously invests in highly rated bonds.
(Right-hand graph)
As of December 31, 2015, Sony Bank’s non-consolidated capital adequacy ratio(d(domestici criteria)i i ) was 10
10.50%,50% ddown 00.16
16 percentage points
iffrom MMarchh 3131,
2015, maintaining financial soundness.

The forecasts for FY15 financial results, both consolidated and for the individualb ibusinesses(lif(life iinsurance, non-life
lif iinsurance anddbbanking)ki ) remain
i unchangedhd
because the actual results were in line with our expectations.
We expect current financial market conditions, which have fluctuated significantly
since January 2016, to have a limited impact on forecasts for FY15 financial
results, both the consolidated and for the individual businesses. The impact fromthe current market conditions are incorporated in our forecasts
forecasts.

Sony Life’s MCEV as of December 31, 2015 decreased ¥1.3 billion from
September 30, 2015, to ¥1,386.9 billion, mainly due to a decline in interest rates inJapanese yen despite the continued favorable acquisition of new policies.
New business value for FY15.3Q (9M) was ¥27.3 billion (¥36.3 billion /annualized).
New business margin for FY15.3Q (9M) was down 0.2 percentage points from
FY15.1H (6M), to 2.4%, mainly due to a decline in interest rates in Japanese yen,partially offset by the positive impact of funding limits on variable life insurance
insurance.

In FY15.3Q (3M), new business value and new business margin was ¥15.2 billion(¥60.8 billion / annualized) and 3.9%, respectively, reflecting a significant
improvement in profitability as compared with the first half.
This improvement was because of funding limits on variable life insurance inAugust 2015 and sales of new protection-type products, launched in November
2015.
Moreover, Sony Life has increased insurance premiums on variable life insurancein January 2016 to further improve profitability
profitability.

The risk amount based on economic value as of December 31, 2015 amounted to¥799.9 billion. Of which, insurance risk and market-related risk amounted to¥782.6 billion and ¥301.1 billion, respectively.
The risk amount based on economic value as of December 31, 2015 was up from
September 30, 2015, mainly due to a steady increase in policy amount in force
and a decline in interest rates.
Th economicThei solvency
lratioti (ESR)(ESR), ththe ratio
ti off MCEV tto theth riski k amountt basedbdon economic value, was 173%, maintaining a financial soundness.
Taking into account market conditions following the Bank of Japan’s introductionof negative interest rates at the end of January 2016, MCEV as of December 31,
2015, would have been down approximately ¥90 billion, to around ¥1,300 billion.
Estimated ESR was around 160%
160%, indicating that even in the market environment
at the end of January, there are no issues with soundness.