Presentation Material

Consolidated Financial Results
for the Three Months Ended June 30, 2010

Sony Financial Holdings Inc.
August 12, 20100

Disclaimers:
This presentation material contains statements concerning the current plans, expectations, strategies and beliefs of the SonyFinancial Holdings Group (the “SFH Group”). Any statements contained herein that pertain to future operating performance andthat are not historic facts are forward-looking statements. Forward-looking statements may include—but are not limited to—words such as “believe,” “anticipate,” “plan,” “strategy,” “expect,” “forecast,” “predict,” “possibility” that describe future operating
activities, business performance, events or conditions. Forward-looking statements, whether spoken or written, are based on
judgments made by the management of the SFH Group, based on information that is currently available to it. As such, theseforward-looking statements are subject to various risks and uncertainties, and actual business results may vary substantially fromthe forecasts expressed or implied in forward-looking statements. Consequently, investors are cautioned not to place undue
reliance on forward-looking statements. The SFH Group disclaims any obligation to revise forward-looking statements in light of
new information, future events or other findings. The information contained in this presentation does not constitute or form part ofany offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any securities, nor shall it or any
part of it form the basis of or be relied on in connection with any contract or commitment whatsoever.

1

Disclaimer

1Highlights of Consolidated Operating Performancefor the Three Months Ended June 30, 2010 (1)FY09.1Q

FY10.1Q

Change(Billions of yen)

Ordinary revenues

248.1

Ordinary profit(3.1%)

240.5

Life
insurancebusiness

Ordinary revenues

223.2

214.1

(9.1)

(4.1%)

Ordinary profit

20.7

18.5

(2.2)

(10.6%)

Non-life
insurancebusiness

Ordinary revenues

17.4

19.0

+1.5

+8.9%

Ordinary profit

0.9

0.4

(0.4)

(47.9%)

Ordinary revenues

7.6

7.7

+0.0

+0.8%
+100.0%Bankingbusiness(10.8%)

21.9

Ordinary profit

Corporateandelimination

Ordinary revenues

FY09.1Q

+0.2
(0.0)

－
+41.3%

0.0

0.0

248.1

240.5

(7.5)

(3.1%)

Ordinary profit

21.9

19.5

(2.3)

(10.8%)Net income

12.5

10.3

(2.1)

(17.1%)

09.6.30

10.3.3110.6.30

Change from 10.3.31

Total
assets5,452.7

6,001.0

6,085.4

+84.3

+1.4%

Net
assets

231.1

269.4

283.0

+13.6

+5.1%

Ordinary revenues

Consolidated

0.5
(0.4)

+0.0

Ordinary profit

19.5

0.2
(0.3)

FY10.1Q(Billions of yen)(Billions of yen)

Consolidated

Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

2

During the three months ended June 30, 2010, consolidated ordinary revenues
decreased 3.1% year on year, to ¥240.5 billion. As for the breakdown bybusiness segment, ordinary revenues from the life insurance business decreased
and ordinary revenues remained roughly flat for the banking business, althoughordinary revenues from the non-life insurance business increased.
Consolidated ordinary profit decreased 10.8%, to ¥19.5 billion reflecting
decreases in ordinary profit from the life insurance and the non-life insurance
businesses which led to a 17.1% decrease in net income from a year earlier,amounting to ¥10.3 billion.

2

Highlights of Consolidated Operating Performancefor the Three Months Ended June 30, 2010 (2) Life Insurance: Ordinary revenues decreased year on year. This was because the deteriorationin financial market conditions prompted a loss on separate accounts, net, compared with a gaina year earlier, although income from insurance premiums increased owing to steady increases
in the new policy amount and in the policy amount in force. Ordinary profit decreased, due
primarily to a change from the previous year’s reversal of policy reserve for minimum guarantee
for variable life insurance to a provision in the current period, resulting from the aforementioned
deteriorated performance on separate account assets, despite a higher gain from investment,
net, on general account assets.
 Non-life Insurance: Ordinary revenues increased year on year, owing to an increase in net

premiums written, reflecting a growing number of in-force policies primarily for automobile
insurance. However, ordinary profit decreased, due to an increase in net losses paid forautomobile insurance.
 Banking business: Ordinary revenues remained roughly flat year on year. Gross operating

profit increased owing mainly to an increase in interest income on loans led by a growing
balance of mortgage loans, and improved investment performance. Operating expenses
increased owing mainly to an increase in system-related expenses. Consequently, ordinary
profit increased year on year.
 Consolidated ordinary revenues decreased 3.1% year on year, to ¥240.5 billion, consolidated

ordinary profit decreased 10.8%, to ¥ 19.5 billion, and consolidated net income decreased
17.1%, to ¥ 10.3 billion.

3

3

Highlights of Operating Performance:
Sony Life (Non-Consolidated)(Billions of yen)

Ordinary revenues

223.2

Ordinary profit(4.1%)

214.1(9.2%)

FY09.1Q

Ordinary revenues

18.8

(9.1)

(4.1%)

Income from insurance premiums

165.9

182.6

+16.7

+10.1%

Investment income(46.4%)

56.5

30.3

(26.2)

Interest income and dividends

15.7

20.5

+4.8

+30.8%

Income from monetary trusts, net

4.1

2.3

(1.8)

(44.1%)

Gains on sale of securities

6.6

7.4

+0.8

+12.1%

Gains on separate accounts, net

28.8

－

(28.8)(100.0%)(3.6%)

202.4

195.2

(7.1)

Insurance claims and other payments

66.8

67.7

+0.9

+1.4%

Provision for policy reserve and others

103.2

67.2

(35.9)(34.8%)

Investment expenses

FY09.1Q

FY10.1Q(Billions of yen)

Change214.1

Ordinary expenses

20.7

FY10.1Q

223.2

6.2

32.9

+26.7

+427.5%Losses on sale of securities

3.6

0.4

(3.1)

(86.8%)

Losses on separate accounts, net

－

30.0

+30.0

－

23.1

23.8

+0.7

+3.3%

Operating expenses

Ordinary revenues and ordinary profit decreased year onyear.
Income from insurance premiums increased due to anincreased policy amount in force.
Investment income decreased.

Ordinary profit

20.7

18.8

(1.9)

(9.2%)Net income

11.8

10.1

(1.6)

(13.9%)

09.6.30

10.3.3110.6.30

Ordinary profit decreased, due primarily to a change fromthe previous year’s reversal of policy reserve for minimum
guarantee for variable life insurance to a provision in thecurrent period, resulting from the aforementioned
deteriorated performance on separate account assets,
despite a higher gain from investment, net, on generalaccount assets.

Securities

2,958.4

3,539.1

3,646.2+107.0+3.0%

Policy reserves

3,694.8

3,985.6

4,052.1

+66.5

+1.7%

Total net assets

158.8

191.3

205.2

+13.9

+7.3%

17.2

15.4

26.2

+10.7

+69.5%

3,918.9

4,286.5

4,343.1

+56.5

+1.3%

312.9

373.6

349.4

(24.1)(6.5%)(Billions of yen)

Net unrealized gains/losses onother securities
Total assets

Line item amounts are truncated below ¥100 million;
percentage change figures are rounded.

Separate account assets

Change from 10.3.31

4Highlights of Sony Life’s operating performance (non-consolidated basis) are
shown here.
Sony Life’s ordinary revenues decreased 4.1% year on year, to ¥214.1 billion.
This was because the deterioration in financial market conditions prompted a loss
on separate accounts, net, compared with a gain a year earlier, although income
from insurance premiums increased owing to steady increases in the new policy
amount and in the policy amount in force.
Income from insurance premiums grew 10.1% from same period of the previous
fiscal year, to ¥182.6 billion, associated with a higher policy amount in force.
Investment income decreased 46.4% year on year, to ¥30.3 billion, due mainly toaforementioned loss on separate accounts, net, which offset higher interest income
and dividends in line with the growing balance of ultralong-term bonds.
Investment expenses increased 427.5% year on year to ¥32.9 billion due to a loss
on separate accounts, net, compared with a gain a year earlier.
Ordinary profit decreased 9.2% year on year to ¥18.8 billion, due primarily to achange from the previous year’s reversal of policy reserve for minimum guarantee
for variable life insurance to a provision in the current period, resulting from theaforementioned deteriorated performance on separate account assets, despite ahigher gain from investment, net, on general account assets.
Consequently, net income decreased 13.9% year on year, to ¥10.1 billion.

4

Overview of Performance:
Sony Life (Non-Consolidated)(Billions of yen)

FY09.1Q

FY10.1Q

ChangeNew policy amount

932.2

1,065.3+14.3%

Lapse and surrender amount

543.2

527.8

(2.8%)

Lapse and surrender rate

1.67%

1.58%

(0.09pt)

Policy amount in force

32,720.8

33,819.2+3.4%

Annualized premiums from newpolicies

16.0

18.1

+13.1%Of which, third-sector
products

3.9

4.1

+5.0%

Annualized premiums frominsurance in force

552.8

582.4

+5.4%

Of which, third-sector
products

128.3

135.0

+5.2%

(Billions of yen)

FY09.1Q

ChangeFY10.1Q

Gains from investment, net(General account)

21.4

27.4

+28.2%

Core profit

16.5

11.7

（28.8%）

Negative spread

4.5

2.6

（42.2%）

Solvency Margin Ratio

09.6.30

10.3.3110.6.30

2,264.3%

2,637.3%

2,810.0%

Change＋172.7pt

Notes:*1 Figures for new policy amount, lapse and surrender amount, lapse and surrender rate, policy amount in force,
annualized premiums from new policies and annualized premiums from insurance in force are calculated as thetotal of individual life insurance and individual annuities.
*2 The lapse and surrender rate is calculated without offsetting policies that are reinstated.

(Reasons for changes)
 Increased, due mainly to favorable sales of a discountrider for family income insurance for nonsmokers andother people in excellent health, which trend has
continued since the second half of FY09.

 Decreased due to the lowering lapse and surrender
rates in most products, mainly for term life insurance
and variable insurance.

 Increased, owing mainly to favorable sales of cancer
hospitalization insurance and living benefit insurance.

 Increased due primarily to an increase in interest
income and dividends.

 Declined owing primarily to a change from theprevious year’s reversal of policy reserve forminimum guarantee for variable life insurance toa provision in the current period, despite increases
in income from insurance premiums and in interest
income and dividends.
 Rose owing mainly higher unrealized gains.
Line item amounts are truncated below ¥100 million;
percentage change figures are rounded.

5

Here is an overview Sony Life’s performance.

5

Sony Life Operating Performance (1)New Policy Amount

Annualized Premiums from New Policies(Individual Life Insurance + Individual Annuities)(Individual Life Insurance + Individual Annuities)

New policy amount

Number of new policy(Thousands of policies)

155(Trillions of yen)

15,0001.5

Annualized premiums from new policies

Of witch, third-sector(Billions of yen)

+8.1%

142

144

20

18.1
+13.1%

16.2
1.06
10,000
1.0

1.00

16.0

15

100

0.93
+14.3%

10

5,000
0.5
+5.0%

5

0

0
FY08.1Q

FY09.1Q

FY10.1Q

Line item amounts are truncated below ¥10 billion; numbers of policies aretruncated below 1,000 policies; percentage change figures are rounded.

3.5

3.9

4.1

FY08.1Q

FY09.1Q

FY10.1Q

0Line item amounts are truncated below ¥100 million; percentage figures are rounded.

6(Left-hand graph)
New policy amount for the total of individual life insurance and individual
annuities increased 14.3% year on year, to ¥1.06 trillion, owing to favorable salesof a discount rider for family income insurance for nonsmokers and other people
in excellent health, which trend has continued since the second half of FY09.
The number of new policies increased 8.1% year on year, to 155 thousand
policies.
(Right-hand graph)
Annualized premiums from new policies increased 13.1%, to ¥18.1 billion,
owing mainly to favorable sales of cancer hospitalization insurance and living
benefit insurance. Of this amount, the figure for third-sector products was ¥4.1
billion, up 5.0% year on year.

6Sony Life Operating Performance (2)Policy Amount in Force

Annualized Premiums from Insurance in Force(Individual Life Insurance + Individual Annuities)(Individual Life Insurance + Individual Annuities)

Policy amount in force

Annualized premiums from insurance in force

Number of policies in force

Of which, third sector(Millions of policies)(Trillions of yen)(Billions of yen)

+6.6%

50

5.09
5.01

4.78

600

+1.8%

5

+5.4%

552.8

582.4

573.3
+1.6%

500

40

32.7

33.8

33.4
+3.4%

4
400

+1.0%

30

3
300

20

2

10

0
09.6.30

10.3.3110.6.30

Line item amounts are truncated below ¥100 billion; numbers of policies aretruncated below 10,000 policies; percentage change figures are rounded.

200

1

100

0

0

+5.2%

128.3

133.0

09.6.30

10.3.31

+1.6%

135.0

10.6.30

Line item amounts are truncated below ¥100 million;
percentage figures are rounded

7(Left-hand graph)
Policy amount in force for the total of individual life insurance and individual
annuities grew steadily, to ¥33.8 trillion as of June 30, 2010, up 3.4% from June30, 2009 and up 1.0% from March 31, 2010. The number of policies in force
increased 6.6% from June 30, 2009 and up 1.8% from March 31, 2010, to 5.09
million policies.
(Right-hand graph)
Annualized premiums from total policies as of June 30, 2010, were up 5.4% from
June 30, 2009 and up 1.6% from March 31, 2010, totaling ¥582.4 billion. Of thisamount, the figure for third-sector products was up 5.2% from June 30, 2009 andup 1.6% from March 31, 2010, to ¥135.0 billion.

7

Sony Life Operating Performance (3(3)
Lapse and Surrender Rate*

Solvency Margin Ratio（Individual Life Insurance + Individual Annuities）＜Annual・1Q＞* 解約･失効率は、復活契約を失効と相殺せずに算出している。
（％）

2,810.0

3,000
（％）

10

Lapse and surrender rate （1Q）

Lapse and surrender rate
（Annual）+172.7pt

2,500

8

6.79

7.21

2,000

2,637.3
2,264.3

6
1,500

4

2

1,000

1.59

1.67

FY08

FY09

1.58
(0.09ｐｔ)

500

0

0
FY10

09.6.30

10.3.3110.6.30*Figures for lapse and surrender rates are calculated
without offsetting policies that are reinstated.

8(Left-hand graph)
The lapse and surrender rate for the three months ended June 30, 2010 decreased
0.09 percentage point year on year, to 1.58%, due to the lowering lapse andsurrender rates in most products. For the same period of the last fiscal year, thelapse and surrender rates mainly for term life insurance and variable insurance
rose due to the economic recession.
The lapse and surrender rate for family income insurance rose for the second halfof the last fiscal year, reflecting the impact of individual customers conversion to
discount rider launched in November 2009 for nonsmokers and other people inexcellent health. However it has declined in the current period.
(Right-hand graph)
As of June 30, 2010, Sony Life’s solvency margin ratio was 2,810.0%, up 172.7
percentage points from March 31, 2010.

8

Sony Life Operating Performance (4)Ordinary Profit

Income from Insurance Premiums(Billions of yen)(Billions of yen)

200

182.6
162.5

30

165.9
+10.1%

20.7

18.8

20
(9.2%)

100

12.3
10

0

0
FY08.1Q

FY09.1Q

FY10.1Q

FY08.1Q

FY09.1Q

FY10.1Q

Line item amounts are truncated below ¥100 million; percentage figures are rounded.

9(Left-hand graph)
Income from insurance premiums increased 10.1% year on year to ¥182.6 billion,
associated with a steady increase in policy amount in force.

(Right-hand graph)
Ordinary profit decreased 9.2% year on year, to ¥18.8 billion.

9

Sony Life Operating Performance (5)Negative SpreadCore Profit(Billions of yen)(Billions of yen)

20

20

16.5
(28.8%)

15

15

11.7
10

9.3

10

6.1
4.5

5

5

(42.2%)

2.6

0

0
FY08.1Q

FY09.1Q

FY10.1Q

FY08.1Q

FY09.1Q

FY10.1Q

Line item amounts are truncated below ¥100 million; percentage figures are rounded.

10(Left-hand graph)Core profit was down 28.8% year on year, to ¥11.7 billion, due primarily to achange from the previous year’s reversal of policy reserve for minimum
guarantee for variable life insurance to a provision in the current period, despite
increases in income from insurance premiums and in interest income anddividends.
(Right-hand graph)
In line with the increase in interest income and dividends, the negative spread
declined 42.2% year on year, to ¥2.6 billion.

10

Sony Life Operating Performance (6)Number of Lifeplanner Sales Employees（Number）

Number of Independent Agents（Number）

2,500

4,036
4,000

3,891

3,928

4,021
(15)

2,112

2,084

2,089

2,000

2,064
(25)

3,500
1,500

3,000
0

1,000
0

09.3.31

09.6.30

10.3.3110.6.30

09.3.31

09.6.30

10.3.3110.6.30

11(Left-hand graph)
The number of Lifeplanner sales employees as of June 30, 2010, was 4,021,
down 15 from March 31, 2010. This decrease was the result of a higher numberof resignations and a lower number of new recruits due to the revised recruitment
standards.
(Right-hand graph)
The number of independent agents decreased 25 from March 31, 2010, to 2,064.

11

Sony Life Operating Performance (7)Breakdown of General Account Assets (Based on the real status)
10.3.31(Billions of yen)Japanese governmentand corporate bonds(excl. CBs)

10.6.30<Asset management review>

Amount％Amount％3,310.4

84.6%

3,466.3

86.8%

13.2

0.3%

－

－

Japanese government and corporate bonds:
Continuously accumulated ultralong-term bonds for 1Q
FY10.

<Lengthened
assets duration><L
CBs
Japanese stocks

09.3.3113.6 years

10.3.3117.6 years

10.6.3018.0 years

72.5

1.9%

63.5

1.6%

75.2

1.9%

69.3

1.7%

CBs: No balance (as of June 30, 2010)

Policyholder loans

127.5

3.3%

128.9

3.2%

Japanese stocks: Maintained the ratio of stock holding
at the end of March, 2009.

Real estate

79.9

2.0%

79.7

2.0%

116.4

3.0%

87.5

2.2%

117.4

3.0%

98.3

2.5%

3,912.9

100.0 %

3,993.7

100.0 %

Foreign securities

Cash and call loans

Other
Total

Amounts for individual items included in monetary trusts(Japanese government and corporate bonds, CBs, Japanesestocks and other) have been broken down into their original
investment categories.
* The breakdowns shown at left are different from those shownin Chapter 2, “Status of Investment of Assets (General
Account Assets)” on page 3 of the “Summary Information on
Sony Life’s Financial Results for the Three Months Ended June30, 2010,” announced by Sony Life.

12

Here is a breakdown of Sony Life’s general account assets as of June 30, 2010,
compared with March 31, 2010.
Amounts for individual items included in monetary trusts (Japanese government
bonds and corporate bonds, CBs, Japanese stocks and other) have been broken
down into their original investment categories, aiming at showing the portfolio
breakdown based on the real status.
As Sony Life increased its investment in ultralong-term bonds, mainly Japanese
government and corporate bonds, that ratio rose year on year to 86.8%. On theother hand, the ratio of holding Japanese stocks remained roughly flat and thebalance of CBs as of June 30, 2010 became zero.
As a result of lengthening assets duration, it became 18.0 years as of June 30,
2010.
.

12

Highlights of Operating Performance:
Sony Assurance
Ordinary revenues

Ordinary profit

+8.9%

17.4

(Billions of yen)

19.0

FY09.1Q

Ordinary revenues
Underwriting income
Investment income
Ordinary expenses

Underwriting expenses

0.9
FY09.1Q(47.9%)

0.4
FY10.1Q

FY10.1Q

Change

17.4

19.0

+1.5

+8.9%

17.3

18.8

+1.5

+9.0%

0.1

0.1

+0.0

+5.0%

16.5

18.5

+1.9

+12.0%

12.6

14.3

+1.7

+13.8%

Investment expenses

0.0

－

(0.0)

(100.0%)Operating, general andadministrative expenses

3.9

4.1

+0.2

+6.3%

Ordinary profit

0.9

0.4

(0.4)

(47.9%)Net income

0.6

0.2

(0.3)

(53.1%)(Billions of yen)Ordinary revenues increased, but ordinary profit
decreased, year on year.
Ordinary revenues amounted to ¥19.0 billion, up
8.9% year on year. This was because net premiums
written increased, owing to a growing number of
in-force policies primarily for automobile insurance.
Ordinary profit amounted to ¥0.4 billion, down
47.9% year on year, due mainly to an increase in
net losses paid for automobile insurance, which
offset the positive impact of increased ordinary
revenues.

(Billions of yen)

09.6.30

10.3.3110.6.30

Underwriting reserves

53.8

58.1

61.3

+3.1

+5.5%

Total net assets

14.4

15.4

15.7

+0.2

+1.9%

(0.0)

0.0

0.0

+0.0

+23.5%

90.1

98.3

101.3

+3.0

+3.1%

Net unrealized gains/losses
on other securities(net of taxes)
Total assets

Change from 10.3.31

Line item amounts are truncated below ¥100 million *excluding Net unrealized gains/losses on other securities (net of taxes); percentage change figures are rounded.

13

Sony Assurance posted a 8.9% increase in ordinary revenues year on year, to¥19.0 billion, due to increased net premiums written, as the number of insurance
policies in force grew for strong sales of new policies in its mainstay automobile
insurance.
Ordinary profit decreased 47.9% year on year, to ¥0.4 billion, due mainly to anincrease in net losses paid for automobile insurance, resulting mainly from arising number of car accidents, which offset the positive impact of increased
ordinary revenues.
Net income decreased 53.1% year on year, to ¥0.2 billion.

13

Overview of Performance:
Sony Assurance(Reasons for changes)(Billions of yen)

FY09.1Q

FY10.1Q

Direct premiums written

17.2

18.7

+8.6%

Net premiums written

17.3

18.8

+9.0%

Net losses paid

8.0

9.2

+15.6%

Underwriting profit

0.7

0.3

(58.1%)Net loss ratio

52.0%

55.2%

+3.2ptNet expense ratio

24.6%

23.9%

(0.7pt)Combined ratio

76.5%

79.1%

+2.6ptChange Increased, owing to an increase in thenumber of policies in force for automobile
insurance.
 Increased, owing to an increase in thenumber of policies in force for automobile
insurance as well as rising number of car
accidents.
 Decreased, due to increased net
premiums written which offset thenegative impact of an increase inunderwriting costs
 Increased steadily, refracting an increasein the number of policies in force for
automobile insurance.

Net expense ratio is equal to the ratio of total underwriting costs to net premiums written.
Net loss ratio is equal to the ratio of net losses paid and loss adjustment expenses to net premiums written.

09.6.30
Number of policies in force
Solvency margin ratio

10.3.3110.6.30

1.19 million

1.27 million

1.30 million

1,020.1%

1,018.5%

1,029.7%

Change from
10.3.31+0.03 million+2.4%+11.2pt

The number of policies in force is the total of automobile insurance and medical and cancer insurance, which accounts for 99% of net premiums written.
Line item amounts are truncated below ¥ 100 million; numbers of policies aretruncated below 10,000 policies; percentage change figures are rounded.

14

Here is an overview of Sony Assurance’s performance.

14

Sony Assurance’s Underwriting Performanceby Type of Policy
Direct Premiums Written

Net Premiums Written

FY09.1Q

FY10.1Q

FY09.1Q

Change

Fire

71

31

(56.4%)

Marine－－－Personal accident*

1,708

1,767

+3.4%

Voluntary automobile

15,473

16,938

+9.5%

－

－

－

17,253

18,737+8.6%

Compulsory
automobile liability
Total

ChangeFY10.1Q(Millions of yen)

(Millions of yen)

Net losses paid

Fire

3

1

(45.3%)

Marine23+40.7%

Personal accident*

1,780

1,824

+2.5%

Voluntary automobile

15,415

16,871

+9.4%

99

158

+59.9%

17,301

18,860+9.0%

Compulsory
automobile liability
Total*SURE, medical and cancer insurance is includes in Personal accident.
FY09.1Q

FY10.1Q

Change(Millions of yen)
Fire

0

0

+49.7%

Marine03+260.8%Personal accident*

348

378

+8.5%

Voluntary automobile

7,538

8,732

+15.8%

Compulsory
automobile liability

126

153

+21.5%

8,014

9,266

+15.6%

Total

Line item amounts are truncated below ¥ 1 million;
Percentage change figures are rounded.

15

This slide shows direct premiums written, net premiums written and net losses
paid by type.

15

Sony Assurance Operating Performance (1)Net Premiums Written andNumber of Policies in Force
Voluntary automobile insurance

Personal accident insurance(Millions of policies)

Number of policies in force

Other

Ordinary Profit(Billions of yen)

1.30

25

1.19

1.2

18.8
17.3

(Billions of yen)
20

+9.5%

20
0.1

1.4

+9.0%

1.8

0.1

15

1

1.7
15

0.8
10

0.9

0.6

10

(47.9%)

16.8
15.4

0.4

0.4

5

5
0.2
0

0
FY09.1Q

FY10.1Q

The number of policies in force is the total of automobile insurance and medical
and cancer insurance policies, which account for 99% of net premiums written.
More than 90% of personal accident insurance is medical and cancer insurance.

0
FY09.1Q

FY10.1Q

Line item amounts are truncated below ¥100 million; numbers of policies aretruncated below 10,000 policies; percentage change figures are rounded.

16(Left-hand graph)
Number of policies in force for the total of accident insurance such automobile
insurance and medical and cancer insurance increased steadily, rising 9.5% year
on year, to 1.30 million policies.
Net premiums written posted a 9.0% year-on-year increase, to ¥18.8 billion.
(Right-hand graph)
Ordinary profit decreased 47.9% year on year, to ¥0.4 billion due mainly to anincrease in net losses paid for automobile insurance, which offset the positive
impact of increased ordinary revenues.

16

Sony Assurance Operating Performance (2)Reference
Combined Ratio(Net Expense Ratio + Net Loss Ratio)

Net Expense Ratio + Earned/Incurred Loss Ratio
Earned/incurred loss ratio

Net expenses ratio
（％）
100

90.2

91.9

+3.4pt90.3

Net expenses ratio

86.9
81.7

80

Net loss ratio（％）
100+2.6pt

83.3

79.1

76.5

80
+4.1pt

66.4

60
63.5

65.8

62.3

+3.2pt

57.2
55.0

40

20

60

55.2

52.0

40

26.7

20

(0.7pt)

26.1

24.6

23.9

FY09.1Q

FY10.1Q

0

26.7

26.1

(0.7pt)

24.6

23.9

FY09.1Q

FY10.1Q

0
FY08

FY09

FY08

FY09

Earned/incurred loss ratio is equal to the ratio of the sum of net losses paid, loss
adjustment expenses and accumulation in provision for reserve for outstanding
losses to earned premiums.
*Note that earthquake insurance and compulsory automobile liability

Net expense ratio is equal to the ratio of total underwriting costs to net premiums written.
Net loss ratio is equal to the ratio of net losses paid and loss adjustment expenses to
net premiums written.

insurance are excluded from the above calculation.

17(Left-hand graph)
To help you understand the actual condition of Sony Assurance, which is in a
growth phase, we show the earned/incurred loss ratio, which is the accrual-basis
loss ratio. For the three months ended June 30, 2010, the earned/incurred loss
ratio increased 4.1 percentage points year on year, to 66.4%, due to an increasein net losses paid resulting mainly from a rising number of car accidents.
The net expense ratio dropped 0.7 percentage point, to 23.9%, resulting from anincrease in net premiums written, and expense control.
(Right-hand graph)
The net loss ratio rose 3.2 percentage points compared with the same period of
the previous fiscal year, to 55.2%, due to the aforementioned increase in net
losses paid.
This is different from the earned/incurred loss ratio, which reflects an increase ora decrease in provision for reserve for outstanding losses.
As a result, the combined ratio (the sum of the net loss ratio and the net expense
ratio) rose 2.6 percentage points year on year, to 79.1%.

17

Sony Assurance Operating Performance (3)Solvency Margin Ratio
（％）

1,200
+11.2pt

1,020.1

1,018.5

09.6.30

10.3.311,029.7

800

400

0
10.6.30

Note: The figure above is calculated based on the Insurance Business Law Enforcement Regulations and Ministry of Finance Announcement.
A portion of the figures as of June 30, 2009, and June 30, 2010, are calculated according to the simplified methods judged rational by Sony Assurance.

18

As of June 30, 2010, Sony Assurance’s solvency margin ratio was 1,029.7%, up
11.2 percentage points from March 31, 2010. These figures show that Sony
Assurance has maintained financial soundness.

18

Highlights of Operating Performance:
Sony Bank (Non-Consolidated)
Ordinary revenues

7.6

+0.8%

0.4
FY09.1Q

Ordinary profit(Billions of yen)

7.7

0.7

+52.6%

FY09.1Q

ChangeFY10.1Q

Ordinary revenues

7.6

7.7

+0.0

0.8%

Gross operating profit

3.2

4.0

+0.7

+24.0%Net interest income

3.2

3.1

(0.0)

(2.5%)Net fees and commissions

0.03

0.06

+0.02

+69.4%Net other operating income(0.01)

0.8

+0.8

－

General andadministrative expenses

2.7

3.1

+0.4

+16.1%

Ordinary profit

0.4

0.7

+0.2

+52.6%Net income

0.2

0.3

+0.0

+32.4%Net operating profit

0.5

0.8

+0.2

+52.4%

FY10.1Q(Billions of yen)Ordinary revenues remained flat and ordinary profit increased
year on year.
Gross operating profit increased ¥0.7 billion year on year due to anincrease in net other operating income.
- Net interest income slightly decreased due mainly to increased
interest expenses on derivatives held for hedging purpose formortgage loans despite higher interest income on loans.
- Net other operating income increased ¥0.8 billion, mainly reflecting
improved investment performance.
Net operating profit increased ¥0.2 billion year on year despite anincrease in operating expense of ¥0.4 billion.
Customer assets increased ¥2.9 billion from March 31, 2010, of which
deposit balance increased ¥7.0 billion.

(Billions of yen)

Change from
10.3.31

09.6.30

10.3.3110.6.30

Securities

807.8

880.1

903.0

+22.9

+2.6%

Loans

510.8

586.6

600.9

+14.2

+2.4%

Deposits

1,330.9

1,510.0

1,517.1

+7.0

+0.5%

Customer assets

1,423.7

1,610.0

1,613.0

+2.9

+0.2%

Total net assets

53.2

58.9

58.2

(0.7)

(1.3%)

(3.1)

0.9

1.0

+0.1

+14.3%

1,438.6

1,612.1

1,637.3

+25.1

+1.6%

Net unrealized gains/losses
on other securities(net of taxes)
Total assets

Line item amounts are truncated below ¥100 million excluding net fees and commissions,and net other operating income; percentage change figures are rounded.

19

Highlights of Sony Bank’s operating performance (non-consolidated basis) are
shown here.
Sony Bank’s ordinary revenues increased 0.8% year on year, to ¥7.7 billion,
owing to an increase in interest income on loans led by a growing balance ofmortgage loans, and improved investment performance.
Gross operating profit increased 24.0% from a year earlier, to ¥4.0 billion, due toan increase in net other operating income. This increase was mainly because aloss from derivatives, net, recorded in the same period of the previous fiscal year,
was absent this period.
General and administrative expenses expanded 16.1% year on year, to ¥3.1
billion, due mainly to an increase in system-related expenses.
As a result, ordinary profit increased ¥52.6%, to ¥0.7 billion. Net income
amounted to ¥0.3 billion, up 32.4% from the same period of the previous fiscal
year.

19

Overview of Performance:
Sony Bank (Non-Consolidated) (1)(Reasons for changes)(Billions of yen)

09.6.30

10.3.3110.6.30

Change from 10.3.31


Customer assets

1,423.7

1,610.0

1,613.0

+2.9

+0.2%

Deposits

1,330.9

1,510.0

1,517.1

+7.0

+0.5%

Yen

1,032.7

1,184.9

1,189.1

+4.1

+0.4%

Foreigncurrency

298.2

325.0

327.9

+2.9

+0.9%

Investment trusts

92.7

100.0

95.9

(4.0)

(4.1%)

510.8

586.6

600.9

+14.2

+2.4%

502.3

555.1

562.4

+7.3

+1.3%

8.5

31.5

38.4*1+6.9+21.9%

736

796

809

+12

+1.6%

13.41%

12.09%

12.20%

Loans
Mortgage loans
OthersNumber of accounts(thousands)
Capital adequacy
ratio(*2)(domestic criteria)

Customer assets increased ¥2.9 billion
from March 31, 2010, of which total of
deposit increased ¥7.0 billion. Foreign
currency Deposit increased ¥2.9 billion
under the circumstance where sharp hikein the yen might have the negative impact
on the foreign exchange conversion.

 Investment trusts decreased reflecting adecline in reference price Loan balance steadily increased due toincreases in mortgage loans andcorporate lending centering on syndicatedloans.

+0.11pt*1 Loans in others include syndicated loans of ¥30.2 billion.
*2 Please refer to the graph of the non-consolidated capital adequacy ratio (domestic criteria) on P24.
Line item amounts are truncated below ¥100 million; numbers of accounts are truncated below 1,000 accounts; percentage change figures are rounded.

20

Here is an overview of Sony Bank’s performance.

20

Overview of Performance:
Sony Bank (Non-Consolidated) (2)■<Reference> On an Internal Control Basis
FY09.1Q

FY10.1Q

3.2

4.0

+0.7

+24.0%Net interest income *1 ①

3.3

3.4

+0.1

+3.7%

Net fees andcommissions *2 ②

0.3

0.4

+0.0

+9.0%

Net other operating
income *3

(0.4)

0.1

+0.6

－

Gross operating profit<Reference>
Net Operating Profit (Core Profit),
Operating Expenses and Other Expenses& Gross Operating Profit (Core Profit)

Change(Billions of yen)

Net operating profit (core profit)
Gross operating profit (core profit)

5

Operating expenses and other expenses

3.9

Gross operating profit(core profit) (A)
= ①＋②

3.7

3.9

+0.1

+4.2%

Operating expenses andother expenses ③

2.7

3.2

+0.5

+18.3%Net operating profit(core profit)= (A)－③

1.0

4

3.7

+4.2%

3.2
3
0.6

(0.3)

2.7

+18.3%(33.9%)●On an Internal Control Basis
The following adjustments are made to the figures on a financial accounting basis toaccount for profits and losses more appropriately.
*1: Net interest income: Includes profits and losses associated with fund investment
recorded in net other operating income, including gains or losses from currency
swap transactions.
*2: Net fees and commissions: Includes profits and losses for customer dealings in foreign
currency transactions recorded in net other operating income.
*3: Net other operating income: After the above adjustment (*1 and *2), consists of profits
and losses for bond and derivative dealing transactions.

2●Core profit
Profits and losses exclude net other operating income which includes those for bond andderivative dealing transactions, and stands for Sony Bank’s basic profits.

0

1

1.0

FY09.1Q(33.9%)

0.6

FY10.1Q

Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

21

The internal control basis is a method we use to describe profit conditions more
appropriately.
(Left-hand table)
Net interest income on an internal control basis increased ¥0.1 billion year on
year, to ¥3.4 billion, due mainly to an increase in interest income on loans
reflecting the growing balance of mortgage loans.
Net fees and commissions amounted to ¥0.4 billion, up by ¥30 million, owing
primarily to an increase in handling fees for foreign exchange margin trading.
Net other operating income amounted to a gain of ¥ 0.1 billion, compared with aloss of ¥0.4 billion for the same period of the previous fiscal year. This increase
was mainly because a loss from derivatives, net, recorded a year earlier, wasabsent this period.
Consequently, gross operating profit on a core profit basis, an indicator of thechanges in Sony Bank’s basic profitability, increased ¥0.1 billion year on year, to¥3.9 billion. This figure is calculated as the sum of net interest income and net
fees and commissions on an internal control basis.
(Right-hand graph)
Net operating profit on a core profit basis decreased ¥0.3 billion year on year, to¥0.6 billion, due to an increase in operating expenses and other expenses.

21

Sony Bank Operating Performance (1)<Reference> Interest Spread (Internal Control Basis)
Interest spread

Yield on investment

Yield on financing

（％）

2.00

1.64

1.53

1.50

1.00

0.95
0.69

1.50

1.49

1.44

0.92

0.92

0.90

0.86

0.61

0.57

0.59

0.58

FY09.2Q

FY09.3Q

FY09.4Q

FY10.1Q

0.50

0.00
FY09.1Q

Notes: Interest spread = Yield on investment – Yield on financing
Yield on investment includes primarily gains or losses from currency swap transactions in net other operating income.

22

This chart shows the interest spread on an internal control basis.
The yield on investment slightly decreased for the three months ended June 30,
2010, due to the lowering of interest rates around the world.
The yield on financing has been staying at the same level.
As a result, the interest spread in this period became 0.86%.

22

Sony Bank Operating Performance (2)Customer Assets (Deposits + Investment Trusts)
and Number of Accounts
Yen deposits
Foreign currency deposits
Number of accounts (thousands)

Investment trusts(Billions of yen)

796

+12

809

Loans
Mortgage loans

Others*Including syndicated loans of ¥30.2billion.

(Billions of yen)
800

2,000

736

1,500

1,423.7600.9

1,613.0

1,610.0
+2.9

95.9

586.6

600

+14.2

510.8

38.4*

327.9
400
1,000
Deposits total:¥1,517.1 billion

562.4

1,189.1
200

500

0

0

09.6.30

10.3.3110.6.30

09.6.30

10.3.3110.6.30

Line item amounts are truncated below ¥100 million; number of accounts are truncated below 1,000 accounts.

23(Left-hand graph)
As of June 30, 2010, customer assets (the sum of deposits and investment trusts)
were up ¥2.9 billion from March 31, 2010, to ¥1,613.0 billion.
As for the breakdown of customer assets as of June 30, 2010, deposits (the sumof Japanese yen and foreign currency deposits) amounted to ¥1,517.1 billion, up¥7.0 billion from March 31, 2010. Of which foreign currency deposit increased¥2.9 billion under the circumstance where sharp hike in the yen might have thenegative impact on the foreign exchange conversion.
Investment trusts were ¥95.9 billion, down ¥4.0 billion from March 31, 2010.
As of June 30, 2010, the number of accounts was 809 thousand, up 12 thousandaccounts from March 31, 2010.
(Right-hand graph)
Loans expanded to ¥600.9 billion, up ¥14.2 billion, from March 31, 2010, owing
to a growing balance of mortgage loans, as well as an increase in corporate loans.

23Sony Bank Operating Performance (3)Non-Consolidated Capital Adequacy Ratio(Domestic Criteria)

Balance of Securities by Credit Ratings
AAA
AA
BBB
BB
(Billions of yen)
1,200

A
Other

（％）
20

1,000

903.0

880.1
807.8

15

12.20
+22.9

800

+0.11pt

13.41
12.09
10

600

400

5

200
0
09.6.30

009.6.30

10.3.3110.6.30

10.3.3110.6.30* Sony Bank’s non-consolidated capital adequacy ratio was calculated based on the standard
stipulated by Article 14-2 of the Banking Law of Japan, in accordance with Financial Services
Agency of Japan (“FSA”) public ministerial announcement No. 19 of 2006. The capital
adequacy ratio as of and after December 31, 2008, newly adopted the special exception of
the standard mentioned above, in accordance with the FSA public ministerial announcement
No. 79 of 2008.

Amounts are truncated below ¥100 million.

24(Left-hand graph)
As of June 30, 2010, the balance of securities increased ¥22.9 billion, to ¥903.0
billion from March 31, 2010.
Sony Bank continuously invests in highly rated bonds.
(Right-hand graph)
As of June 30, 2010, Sony Bank’s non-consolidated capital adequacy ratio(domestic criteria) was 12.20%, up 0.11 percentage point from March 31, 2010.
These figures indicate that Sony Bank has maintained a sound financial basis.

24Consolidated Financial Forecast
for the Year Ending March 31, 2011
(Billions of yen; amounts are truncated below ¥100 million; percentage changes are rounded.)
FY09

Consolidated ordinary revenues

FY10.1H

FY10Change(Forecast)(Forecast)

FY10 forecast
vs. FY09 actual

Consolidated Ordinary Revenues

978.9

483.0

974.0

(0.5％)

882.0

432.1

871.3

(1.2％)

Non-life insurance business

68.1

36.5

72.7

+ 6.6 ％

Banking business

30.5

14.8

30.6

+ 0.3％

1,000

Life insurance business(Billions of yen)
1,200

84.3

41.0

74.0

(12.3％)

800

Life insurance business

79.7

39.6

69.6

(12.8％)

600

Non-life insurance business

2.5

0.7

2.2

(14.2％)

Banking business

1.9

1.2

2.8

+ 45.2%

48.1

23.0

40.0

(16.9％)

Consolidated ordinary profit

Consolidated net income

Banking business
Non-life insurance businessLife insurance business

978.9

974.0

(Forecast)

400
200
0

※SFH’s consolidated financial forecasts for the six months ending September 30, 2010 andfor the fiscal year ending March 31, 2011, are unchanged from those announced on May 13, 2010.

FY09■Life insurance business

Consolidated Ordinary Profit

Ordinary revenues for FY10 are expected to slightly decrease, as we expect a decrease in investment income(Billions of yen)
compared with that of FY09 which reflected a recovery in the financial market conditions, though we expect anincrease in income from insurance premiums in line with the steady growth of policy amount in force. We expect
100
ordinary profit to decrease, due mainly to a decrease in gains on sale of securities held and an increase in insurance
90
claims and other payments.

Banking business
Non-life insurance businessLife insurance business

84.3
74.0

80

■Non-life insurance business
Ordinary revenues for FY10 are expected to rise, as we expect steady business expansion, mainly in its mainstay
automobile insurance. Despite an expected increase in ordinary revenues, ordinary profit is expected to decrease
due mainly to an expected rise in the loss ratio, as well as an expense ratio in line with the planned reinforcement of
the corporate system and infrastructure based on the expected expansion of its business operations.
■Banking Business

FY10

70
60
50

(Forecast)

40
30
20

Ordinary revenues for FY10 are expected to slightly increase, as interest income is expected to rise due toexpanding business operations, although an influence of the worldwide reductions in interest rates still remains.
Ordinary profit is expected to grow, as gross operating profit, especially net interest income, is expected to grow.

10
0
FY09

FY10

25

Here is our consolidated financial forecast for the fiscal year ending March 31,
2011.
SFH’s consolidated financial forecasts for the six months ending September 30,
2010 and for the fiscal year ending March 31, 2011, are unchanged from thoseannounced on May 13, 2010.
Ordinary revenues for the year ending March 31, 2011, are expected to decreaseslightly year on year, stemming from an expected decrease in investment incomein the life insurance business compared with that of the previous fiscal year
which reflected a recovery in financial market conditions, although threebusinesses are expected to steadily expand business operations.
We expect ordinary profit to decrease year on year, due mainly to a decrease ingains on sale of securities held and an increase in insurance claims and otherpayments in the life insurance business.

25

Appendix

26

Appendix

26

Recent Topics (1)AEGON SONY LIFE INSURANCE Sales Update
Launch of sales：December 1, 2009
Common stock：¥20 billion (including capital surplus of ¥10 billion)
Equity ownership：Sony Life insurance Co., Ltd. 50%, AEGON・international B.V. 50%
Marketing products:
1) Winning Road (Variable Individual Annuity - Guaranteed Lifetime Withdrawal Benefit (GLWB) type)2) My History (Variable Individual Annuity - Guaranteed Lifetime Withdrawal Benefit (GLWB) type)3) Victory Run (Variable Individual Annuity - Guaranteed Minimum Accumulation Benefit (GMAB) type)
Sales Channels: Lifeplanner sales employees and affiliated Banks(The Tokyo star bank, SMBC, Minato bank, Fukushima bank, Chiba Kogyo Bank) *As of Aug. 12, 2010
Sales results: Number of new policies: 171 policies, New policy amount: ¥1,555 million,(FY10.1Q) Number of policies in force: 636 policies, Policy amount in force: ¥8,278 million,

Sony Bank’s Mortgage Loans through Sony Life
Sony Life accounts for 45% of the amount of
new mortgage loans for FY10.1Q.
* Sony Life started handling banking agency business in Jan. 2008.

Sony Assurance’s Auto Insurance Sold by Sony Life
Sony Life accounts for approx. 5% of new automobile policies
for FY10.1Q.
* Sony Life started handling automobile insurance in May 2001.

27(Recent topics (1))

27

Recent Topics (2)<Recent Topics for and after FY10.1Q>
2010-4-1

AEGON Sony Life Insurance ’s variable individual annuity product commenced to be offered at Minato Bank
Sony Bank entered tie-up with Kintetsu Real Estate in mortgage loans

2010-4-12Sony Assurance launched automobile insurance sales via Bank of Yokohama

2010-4-19

AEGON Sony Life Insurance 's variable individual annuity product commenced to be offered at Fukushima Bank

2010-5-1

Sony Life newly opened a branch in Yamagata prefecture to expand its service network
through community-based approachSony Assurance launched automobile insurance sales via Tama Shinkin Bank
Sony Life commenced operations at LIPLA Co., Ltd., a wholly owned subsidiary of Sony Life,and opened the first one-stop shop “LIPLA”.

2010-6-24

Sony Bank opened the first over-the-counter branch, called "Housing Loan Plaza.

2010-7-12

AEGON Sony Life Insurance 's variable Individual annuity product to be offered at Chiba Kogyo Bank

2010-7-26

Sony Bank launched foreign currency delivery service

28(Recent topics(2))

28Sony Life: Fair Value Information on Securities
Fair Value Information on Securities
Fair value information on securities with market value (except trading-purpose securities)(Billions of yen)
09.6.30
Carrying
amountFair
value

09.9.30Net
unrealized
gains/losses

Carrying
amount09.12.31
Netunrealized
gains/losses

Fair
value

Carrying
amount10.3.31Net
unrealized
gains/losses

Fair
value

Carrying
amountFair
value

10.6.30Net
unrealized
gains/losses

Carrying
amountNet
unrealized
gains/losses

Fair
value

Held-to-maturity securities

1,641.3

1,643.7

2.4

1,777.8

1,782.4

4.6

2,007.4

1,999.5(7.9)

2,275.6

2,255.1(20.4)

2,477.9

2,628.6

150.7

Available-for-sale securities

1,472.2

1,516.8

44.5

1,418.4

1,470.6

52.1

1,305.9

1,358.2

52.3

1,126.5

1,166.9

40.4

1,039.8

1,097.8

58.0

Domestic bonds

1,352.9

1,387.2

34.2

1,325.0

1,369.9

44.8

1,216.8

1,262.0

45.2

1,061.5

1,090.0

28.4

973.8

1,030.3

56.5

(CBs）

210.4

202.3

(8.0)

159.6

156.8

(2.7)

77.5

78.4

0.9

13.6

13.2

(0.3)

-

-

-

Domestic stocks

56.9

68.4

11.5

40.7

48.4

7.7

51.6

58.1

6.5

51.7

62.1

10.4

51.9

53.2

1.2

Foreign securities

54.9

52.8

(2.0)

47.4

46.0

(1.4)

32.3

31.6

(0.7)

8.0

8.0

(0.0)

2.0

2.0

0.0

Other securities

7.4

8.3

0.9

5.1

6.1

0.9

5.1

6.3

1.2

5.1

6.7

1.5

11.9

12.1

0.2

3,113.5

3,160.5

47.0

3,196.2

3,253.0

56.8

3,313.4

3,357.8

44.3

3,402.1

3,422.1

19.9

3,517.8

3,726.5

208.7

Total

Valuation gains/losses of trading-purpose securities
09.6.30

09.9.30

09.12.31(Billions of yen)

10.3.31

Balance sheet
amountNet valuation
gains/losses
recorded inincomeBalance sheet
amountNet valuation
gains/losses
recorded inincomeBalance sheet
amountNet valuation
gains/losses
recorded inincome

4.7

5.3

0.7

5.6

0.3

5.6

10.6.30

Net valuation
Net valuation
gains/losses Balance sheet gains/losses
recorded inamountrecorded inincomeincomeBalance sheet
amount
-

5.7

-

-

Notes:
1) Line item amounts are truncated below ¥100 million.
2) Amounts above include those categorized as “monetary trusts.

29(Sony Life: Fair value information on securities)

29

Sony Life’s Breakdown of Net Assets
Net Assets on BS, Adjusted Net Assets and Solvency Margin(Billions of yen)
①Net Assets（B/S）
10.3.31②Adjusted
Net Assets

10.6.30

10.3.31③Solvency
Margin10.6.30

10.3.3110.6.30

Total shareholders’ equity

177.3

180.5

177.3

180.5

170.3

Net unrealized gains on other securities, net of taxes
Net unrealized gains/ losses on available-for-salesecurities

15.4

26.2

15.4

26.2

－

179.9
－

－

－

－

－

33.0

48.4

Land revaluation, net of taxes

(1.4)

(1.4)

(1.4)

(1.4)

－

－

Reserve for price fluctuations

－

－

9.6

11.2

9.6

11.2

Contingency reserve

－

－

48.4

49.2

48.4

49.2

Reserve for possible loan losses

－

－

－

－

0.0

0.0

Net unrealized gains on real estate
－

－

2.6

2.6

1.6

1.6

Excess of the amount equivalent topolicy reserve under Zillmer method

－

－

316.5

319.3

316.5

319.3

Unallotted portion of reserve for policyholders' dividends

－

－

2.3

2.7

2.3

2.7

Future profits

－

－

－

－

1.0

1.0

Deferred tax assets

－

－

－

－

47.2

52.9

Net unrealized gains/ losses on held-to-maturity bonds－－(20.4)

150.7

－

－

Deferred tax liabilities for available-for-sale securities

－

－

12.8

19.2

－

－

191.3

205.2

563.4

760.5

630.2

666.6

Total

※Adjusted net assets excluding net unrealized gains/losses on held-to-maturity securities and on policy reserve matching bonds, are¥583.8 billion as of March 31, 2010, and ¥609.8 billion as of June 30, 2010.

Notes③After estimateddistributed income
deducted③Before tax x 90%②Before tax（after revaluation）③Before tax (Before
revaluation) X85%

②Before tax

Amounts are truncated below ¥100 million.

30(Sony Life’s Breakdown of Net Assets)

30

Sony Life’s Changes in Solvency Margin Ratio(Billions of yen)
Category

09.6.30

09.9.30

09.12.31

10.3.3110.6.30

572.4

600.7

625.6

630.2

666.6

Net assets (less certain items)

143.0

152.9

163.3

170.3

179.9

Reserve for price fluctuations

5.0

6.3

7.9

9.6

11.2

Contingency reserve

46.2

46.9

47.8

48.4

49.2

（A）

Total solvency margin

Reserve for possible loan losses

0.0

0.0

0.0

0.0

0.0

Net unrealized gains on other securities (before taxes)
multiplied by 90% if gains or 100% if losses

34.7

41.6

43.0

33.0

48.4

Net unrealized gains on real estate multiplied by 85% ifgains or 100% if losses
Excess of the amount equivalent to policy reserve underZillmer method

4.8

4.8

4.8

1.6

1.6

305.5

309.4

312.8

316.5

319.3

Unallotted portion of reserve for policyholders' dividends

0.3

0.3

1.7

2.3

2.7

Future profits

－

－

－

1.0

1.0

Subordinated debt

32.5

38.1

44.0

47.2

52.9

Deferred tax assets

－

－

－

－

－

Deductible items

－

－

－

－

－

50.5

49.3

48.6

47.7

47.4
19.4

（Ｂ）

Total risk

18.7

18.8

19.0

19.1

Third-sector insurance risk

R8

7.0

7.1

7.1

7.0

7.1

Assumed interest rate risk

R2

11.2

11.2

11.3

11.3

11.4

Asset management risk

R3

23.1

21.4

20.2

18.9

17.9

Business management risk

R4

1.3

1.3

1.3

1.2

1.2

Minimum guarantee risk

R7

7.4

7.6

7.8

8.0

8.3

2,264.3%

2,433.8%

2,570.9%

2,637.3%

2,810.0%

Insurance risk

R1

Solvency margin ratio （A)/(1/2×（B))×100

Amounts are truncated below ¥100 million.

31(Sony Life’s changes in solvency margin ratio)

31

Contact:

Corporate Communications & Investor Relations Department
Sony Financial Holdings Inc.
TEL： +81-3-5785-1074

32(Contact)32