August 13, 2012
Sony Financial Holdings Inc.

Summary Information on Sony Assurance’s Financial Results
for the Three Months Ended June 30, 2012
<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.61

1. Balance Sheets(Millions of yen)
As of March 31, 2012

As of June 30, 2012

Cash and deposits

5,161

5,816

Securities

84,47486,222

Tangible fixed assets

434476

Intangible fixed assets

6,806

7,295

Other assets

16,74315,368Deferred tax assets

4,993

4,839

118,612120,019

91,564

94,437

Reserve for outstanding losses

24,192

24,564

Underwriting reserves

67,371

69,872

7,512

5,886

316

212

7,196

5,673

Reserve for employees’ retirement benefits

717

747

Reserve for directors’ retirement benefits

40

43

Reserve for employees’ bonuses

707

387

Reserve for price fluctuations and others

61

66

61

66

100,603

101,569

Common stock

20,00020,000Capital surplus

20,00020,000Retained deficits(21,946)(21,497)

Total shareholders’ equity

18,05318,502Net unrealized losses on othersecurities, net of taxes

(44)

(52)

Total valuation and translation
adjustments

(44)

(52)

Total Net Assets

18,00918,449Total Liabilities and Net Assets

118,612120,019

Assets:Total Assets
Liabilities:
Underwriting reserves

Other liabilities
Income taxes payable
OthersReserve for price fluctuations
Total Liabilities
Net Assets:
Shareholders’ equity

Valuation and translation adjustments22. Statements of Income(Millions of yen)
For the three months ended
June 30, 2011

For the three months ended
June 30, 2012

20,46921,751

20,21521,489

20,20821,48178217

231(Interest income and dividends)

206

226

(Gains on sale of securities)

1913(Transfer to interest and dividends on deposits of premiums)

(7)

(8)

3530

19,68021,025

Ordinary Revenues
Underwriting income(Net premiums written)(Interest and dividends on deposits of premiums)
Investment income

Other ordinary income
Ordinary Expenses
Underwriting expenses

15,10016,131(Net losses paid)

10,267

11,461(Loss adjustment expenses)

1,221

1,395

413

400

(Net commissions and brokerage fees)(Provision for reserve for outstanding losses)(Provision for underwriting reserves)
Investment expenses
Operating, general and administrative expenses
Other ordinary expenses

164

372

3,033

2,501

10

4,573

4,891

42789

Ordinary Profit
Extraordinary Gains

725-

Extraordinary Losses
Provision for reserve for price fluctuations and others
Provision for reserve for price fluctuations

-4444

4

4

Income Before Income Taxes

785

721

Income Taxes –current

427

114

Income Taxes –deferred

(138)

157

Total Income Taxes

289

272

Net Income495

449

3

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

For the three months
ended June 30, 2012

Change(Amount)

Change(%)

20,022

21,2141,192

6.0

20,022

21,214

1,192

6.0

20,215

21,4891,274

6.3

20,20821,481

1,273

6.3

15,10016,131

1,031

6.8(Net losses paid)

10,267

11,461

1,193

11.6

(Loss adjustment expenses)

1,221

1,395

174

14.3

413

400

(12)

(3.0)

217

231

136.4

(Interest income and dividends)

206

226

20

9.8

(Gains on sale of securities)

19

13(6)

(32.5)

10(1)(93.2)

4,573

4,891

317

7.0

4,549

4,865

316

6.9

Other ordinary income (expenses), net

3127(3)(10.1)

Ordinary profit

789

725

(63)

(8.0)

565

491

(73)

(13.0)

Extraordinary gains－－－－

Extraordinary losses

440

8.1

Extraordinary gains (losses), net

(4)

(4)

(0)

－

Income before income taxes

785

721

(63)

(8.1)

Income taxes–current

427

114

(313)

(73.3)

Income taxes–deferred

(138)

157

296

－

Total income taxes

289

272

(17)

(6.0)

Net income495

449

(46)

(9.4)

Net loss ratio

56.9%

59.9%Net expense ratio

24.6%

24.5%

Gross direct premiums written(Direct premiums written)
Underwriting income(Net premiums written)
Underwriting expenses

Ordinary Income (expenses)(Net commissions and brokerage fees)
Investment income

Investment expenses
Operating, general and administrative expenses(Operating, general and administrative expenses
related to underwriting)(Underwriting profit)
Extraordinarygains (losses)
Ratios

Notes: 1. Underwriting profit = Underwriting income – (Underwriting expenses + Operating, general and administrative expenses related to underwriting) ± Other income (expenses).
Other income (expenses) is the amount equivalent to the corporate income taxes for compulsory automobile liability insurance, etc.
2. Ratios are calculated as follows.
Net loss ratio = (Net losses paid + Loss adjustment expenses) / Net premiums written x 100
Net expense ratio = (Net commissions and brokerage fees + Operating, general and administrative expenses related to underwriting) / Net premiums written x 100

4%4. Premiums and Losses Paid by Type of Policy
Direct premiums written(Millions of yen)
For the three months endedJune 30, 2012

For the three months ended
June 30, 2011
AmountComposition YoY Change%

Fire32

AmountComposition

YoY Change%%%

0.2

3.1

630.3

97.9

－

－－－－

－

Personal accident

1,805

9.0

2.2

1,931

9.1

6.9

Voluntary automobile

18,18490.8

7.4

19,219

90.6

5.7

－

－－－

－－

20,022100.0

6.9

21,214100.0

6.0

MarineCompulsory automobile liability

Total
Net premiums written(Millions of yen)
For the three months ended
June 30, 2011
Amount

For the three months ended
June 30, 2012

Composition YoY Change%

AmountCompositionYoY Change%%%

Fire

610.3

3,516.4

690.3

11.6

Marine20.0(27.3)

420.2

1,409.60

Personal accident

1,875

9.3

2.8

2,001

9.3

6.8

Voluntary automobile

18,11789.7

7.4

19,150

89.1

5.7

150

0.7(5.6)

217

1.0

45.1

20,208100.0

7.1

21,481

100.0

6.3

Compulsory automobile liability

Total
Net losses paid

(Millions of yen)
For the three months ended
June 30, 2011
Amount

For the three months ended
June 30, 2012

YoY Change Net loss ratio%Amount

YoY ChangeNet loss ratio

%%%

Fire

765,393.4

130(95.3)

9.0

Marine8

159.1

293.1

122

1,370.0

286

426

12.8

25.1

467

9.5

26.6

9,627

10.3

59.6

10,631

10.4

62.4

197

28.8

131.4

239

21.3

109.8

10,267

10.8

56.9

11,461

11.6

59.9

Personal accident
Voluntary automobile
Compulsory automobile liability

Total

5

5. Non-consolidated Solvency Margin Ratio(Millions of yen)
As of March 31, 2012

As of June 30, 2012

27,511

28,06918,05318,502

6166(A) Total non-consolidated solvency margin
Capital or treasury
Reserve for price fluctuations
Contingency reserve

5456

Catastrophe reserve

9,406

9,519

-

-

(63)

(75)

General reserve for possible loan losses
Net unrealized gains on other securities(before subtracting tax effects)
Net unrealized gains on real estate--

Excess refund reserve--

Subordinated debt
That portion of the excess refund reserve andsubordinated debt that is not included in the margin
Deductible items------

Others

--

2

9,862

10,045

Ordinary insurance risk (R 1)

8,929

9,097

(B) Total risk

2

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

Third-sector insurance risk (R2)--Assumed interest rate risk (R 3)

58

60

Asset management risk (R4)

309

313

Business management risk (R 5)

297

303

Major catastrophe risk (R 6)

627

637

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

557.8 ％

558.8 ％

Note: The foregoing figures were calculated based on provisions in Articles 86 and 87 of the Ordinance for Enforcement of the Insurance Business Act ofJapan and Ministry of Finance Public Notice No. 50 of 1996. A part of calculations for non-consolidated solvency margin ratio as ofJune 30, 2012 is calculated according to simplified methods in major catastrophe risk. The figure is assumed to be equivalent to theamount as of March 31, 2012.
<Non-consolidated Solvency Margin Ratio>
Non-life insurance companies maintain reserves to ensure their ability to pay claims when accidents occur and return contracted amounts at maturity on
savings-type insurance. Non-life insurance companies must also maintain sufficient ability to pay in the event of a major catastrophe or a dramatic drop in
the value of the assets they hold—risk events outside the normal scope of expectations.
Total risk (item (B) in the table above) indicates dangers outside the general scope of expectations. The non-consolidated solvency margin ratio(item (C) in thetable above) 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 solvency margin: as indicated by (A) above).
Legislation concerning the calculation of the non-consolidated solvency margin ratio has been revised to promote strict risk measurement, effective fromMarch 31, 2012.
“Risk events outside the normal scope of expectations” refers to the total of the amounts represented by the following risks.
(1) Insurance underwriting risk
:Risk outside the scope of risk incorporated into the rate of accident occurrence (excluding major catastrophe(Ordinary insurance risk)
risks)(Third-sector insurance risk)(2) Assumed interest rate risk

:Risk that actual investment yields will fall below the investment yield assumed when calculating premiums(3) Asset management risk

:Risk arising from such factors as unexpectedly large fluctuations in prices on 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 the Ise 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 reserve for price fluctuations and catastrophe reserve) anda 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. If this ratio is200% or higher, an insurer is judged to have sufficient ability to satisfy claims and other payments.

6