Presentation Material

Consolidated Financial Results
for the Nine Months Ended December 31, 2018
andSony Lifeʼs MCEV as of December 31, 2018

Sony Financial Holdings Inc.
February 13, 2019Sony Financial Holdings Inc.

All Rights Reserved

Content
 Consolidated Operating Results for the Nine Months Ended December 31, 2018

P.3

 Forecast of Consolidated Financial Results for the Fiscal Year Ending
March 31, 2019 (FY18)

P.24

 Sony Lifeʼs MCEV and ESR as of December 31, 2018

P.26

 Appendix

P.29

Disclaimers:
This presentation material contains statements concerning the current plans, expectations, strategies and beliefs of the SonyFinancial Group. Any statements contained herein that are not historical facts are forward-looking statements or pro forma
information. Forward-looking statements may include̶but are not limited to̶words such as “believe,” “anticipate,” “plan,”“strategy,” “expect,” “assume,” “forecast,” “predict,” “propose,” “intend” and “possibility” that describe future operating activities,business performance, events or conditions. Forward-looking statements, whether spoken or written, may also be included in othermaterials released to the public. These forward-looking statements and pro forma information are based on assumptions, decisions
and judgments made by the management of Sony Financial Group companies, and are based on information that is currently
available to them. As such, they are subject to various risks and uncertainties, and actual business results may vary substantiallyfrom the forecasts expressed or implied in forward-looking statements. Consequently, investors are cautioned not to place undue
reliance on forward-looking statements. Sony Financial Group companies are under no obligation to revise forward-looking
statements or pro forma information in light of new information, future events or other findings. The information contained in thispresentation does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or
subscribe to any securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract orcommitment whatsoever in Japan or abroad.
*Unless otherwise indicated, in these materials figures less than the indicated unit have been truncated, while ratios and percentage changes have been rounded.
Also, a “–” is used where percentage changes exceed 1,000% and in cases where one or both comparisons are negative.
* “Lifeplanner” is a registered trademark of Sony Life.

Sony Financial Holdings Inc.

All Rights Reserved2Consolidated Operating Results
for the Nine Months Ended December 31, 2018
<FY18.3Q (9M)>Sony Financial Holdings Inc.

All Rights Reserved

3

Highlights of Consolidated Financial Results
FY18.3Q (9M) consolidated financial results: Revenues down 4.0%, profits up 49.5% YoY.

・Ordinary revenues: Down, mainly due to a worsening of gains from investment in separate
accounts in the life insurance business. Revenues increased in the non-life
insurance and the banking businesses.
・Ordinary profit: Up, due to increases in each area of business: life insurance, non-life
insurance and banking business.
 Sales performance: All three businesses continued to expand steadily.

At Sony Life, the new policy amount steadily increased, owing to thefavorable acquisition of family income insurance policies.

 Full-year forecasts: We have revised our forecasts from the figures announced on April 27,

2018, mainly because of deviations in the life insurance business from
our initial expectations for FY18.3Q (9M).
・Ordinary revenues: Revised to ¥1,530.0 billion (down 3.0% form previous forecast)・Ordinary profit: Revised to ¥92.0 billion (up 10.8% from previous forecast)・Profit attributable to owners of the parent: Revised to ¥60.0 billion (up 9.1% from previous
forecast) Indicators based on economic value:

・On December 31, 2018, MCEV was ¥1,664.6 billion. The QoQ decrease was attributable toa decline in the yen interest rate.
・New business value in FY18.3Q (3M) was ¥23.7 billion. The QoQ increase was due to thesteady acquisition of new policies.
Sony Financial Holdings Inc.

All Rights Reserved

4Highlights of Consolidated Operating Performance＜Consolidated＞
Ordinary revenues
Ordinary profit

1,175.8

Life insurance
business

1,129.3(4.0%)

74.0+49.5%

Non-life
insurancebusiness
Bankingbusiness
Intersegment
adjustments*

49.5

FY17.3Q(9M)

FY18.3Q(9M)

Ordinary revenues

1,062.1

1,006.6(55.5)(5.2%)

Ordinary profit

40.2

60.1

+19.9

+49.5%

Ordinary revenues

82.4

86.2

+3.8

+4.7%

Ordinary profit

5.0

7.3

+2.3

+46.7%

Ordinary revenues

29.6

33.7

+4.1

+13.9%

Ordinary profit

5.0

7.0

+1.9

+38.7%

Ordinary revenues

1.5

2.6

+1.0

+66.1%

(0.8)

(0.5)

+0.2

-

1,175.8

1,129.3(46.5)(4.0%)

Ordinary profit

49.5

74.0

+24.5

+49.5%

Profit attributableto owners of theparent

42.4

50.4

+8.0

+18.8%

Ordinary profit
Ordinary revenues

Consolidated(JPY bn)

FY17.3Q(9M)(JPY bn)

FY18.3Q(9M)

Change*“Intersegment adjustments” is from SFH, the nursing care business, and the venture capital business.
Proud Life Inc. and Sony Financial Ventures Inc. are included in the scope of consolidation from
FY17.2Q and FY18.2Q, respectively.
(Note) Comprehensive income : FY17.3Q(9M): ¥48.6 billion, FY18.3Q(9M): ¥38.5 billion(JPY bn)
Consolidated

Net assets
Total assets

Sony Financial Holdings Inc.

Mar. 18

Dec. 18

Change from Mar. 18

625.4

637.9

+12.5

+2.0%

12,401.4

13,143.9+742.4+6.0%

All Rights Reserved

5Highlights of Operating Performance:
Sony Life (Non-consolidated)(JPY bn)

Ordinary revenues(5.2%)

FY18.3Q(9M)1,062.0

1,006.5(55.5)(5.2%)

Income from insurance premiums

762.8

815.8

＋52.9

+6.9%

Investment income

254.3

145.4

(108.8)(42.8％)

117.7

124.4

+6.6

+5.6%

Gains on sale of securities

0.0

4.5

+4.5

－

Foreign exchange gains, net

2.8

13.1

+10.3

+368.8%130.1－(130.1)(100.0%)1,020.1

945.9(74.1)(7.3%)

Insurance claims and other payments

328.6

344.3

+15.7

+4.8%

Provision for policy reserves and others

524.3

423.6

(100.6)(19.2%)

Investment expenses

28.6

32.4

+3.7

+13.0%

－

4.0

+4.0

－

23.9

0.7

(23.2)(96.7%)

－

22.7

+22.7

－

102.9

107.1

+4.2

+4.1%

Ordinary profit

41.9

60.5

+18.6

+44.4%

Gains on disposal of fixed assets

13.2

－

(13.2)(100.0%)Net income

37.5

41.5

+4.0

+10.7%

Ordinary revenues

Ordinary profit

1,062.0

FY17.3Q(9M)1,006.5

Interest income and dividends

60.5＋44.4%

41.9

Gains on separate accounts, net
Ordinary expenses

Devaluation losses on securities(JPY bn)

Losses on derivatives, net

FY17.3Q(9M)

FY18.3Q(9M) Ordinary revenues decreased but ordinary profit increased
year on year.
 Income from insurance premiums increased due mainly to asteady rise in the policy amount in force.
 Investment income decreased due mainly to a deterioration
in investment performance in the separate account.
 Ordinary profit increased year on year due to an
improvement in net gains (losses) on derivative transactions
to hedge market risks for available-for-sale securities and arecording of gains on sale of securities, both in the generalaccount, and increase in profit on higher policies in force,and a decline in provision of policy reserves for productswith higher surrenders, which more than offset the effect ofan impairment loss relating to available-for sale securities in
the general account.

Losses on separate accounts, net
Operating expenses(JPY bn)

Mar. 18

Dec. 18

ChangeChange from Mar. 18

Securities

8,765.9

9,274.4＋508.4+5.8%

Policy reserves

8,566.0

8,989.3＋423.2

+4.9%

492.7

500.0

+7.2

+1.5％

124.9

116.8

(8.1)

(6.5％)

9,567.6

10,113.2＋545.5+5.7%

1,128.8

1,167.2

+38.4

＋3.4%

Net assets
Net unrealized gains on other securities
Total assets
Separate account assets

Sony Financial Holdings Inc.

All Rights Reserved

6Overview of Operating Performance:
Sony Life (Non-consolidated)
FY17.3Q(9M)

FY18.3Q(9M)

ChangeNew policy amount

3,445.4

4,595.3＋33.4%

Lapse and surrender amount

1,330.3

2,222.2＋67.0％

Lapse and surrender rate

2.94%

4.71%

＋1.77pt

Annualized premiums from new policies

51.9

56.9

＋9.8%

Of which, third-sector products

9.3

11.1

+19.3%

FY17.3Q(9M)

FY18.3Q(9M)

Gains from investment, net (General account)

95.4

135.8

+42.3％

Core profit

70.6

63.7

(9.8％)

Positive spread

13.9

14.0

+0.7%

Mar. 18

Dec. 18

47,253.4

48,894.0

+3.5％

848.8

871.1

+2.6％

191.8

196.0

+2.2％

2,624.3%

2,684.7%+60.4pt(JPY bn)(JPY bn)(JPY bn)
Policy amount in force
Annualized premiums from insurance in force
Of which, third-sector products
Non-consolidated solvency margin ratio

ChangeChangeFrom
Mar. 18＜Reasons for changes＞◆ Increased due to favorable salesof family income insurance.
◆Increased due to cancellations ofexisting policies from certain
customers taking out new policies
such as family income insurance.
This shift resulted from premium
revisions, owing to the revision of
the standard mortality tables.
◆ Increased due to favorable salesof individual annuities and U.S.
dollar-denominated insurance.
◆ Decreased due to an increase in
the provision of policy reserves forminimum guarantees for variable
life insurance in line with worsened
financial market conditions, whichmore than offset an increase inprofit on higher policies in force
and a decline in provision of policy
reserves for products with higher
surrenders.

Note: Figures for new policy amount, lapse and surrender amount, lapse and surrender rate, annualized premiums
from new policies, policy amount in force, and annualized premiums from insurance in force are calculated as
the total of individual life insurance and individual annuities. The lapse and surrender rate shows the ratio
derived by dividing the amount of lapses and surrenders, not adjusted for policy amount decreases, increases,
and reinstatements, by the policy amount in force at the beginning of the fiscal year.

Sony Financial Holdings Inc.

All Rights Reserved

7

Operating Performance :Sony Life (Non-consolidated) (1)
Number and Amount of New Policies

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

Number of new policies

Annualized premiums from new policies

Of which, third-sector（Thousands（JPY tn）＋15.8%

6388

of policies)（JPY bn）

445
60

384
4.59

5

400

54.1

51.9

56.9

＋9.8%

50

＋33.4%

4

3.49

300

3.44

3

200

2

40

30

20
＋19.3%

100

1

10

0

0
FY16.3Q(9M)

FY17.3Q(9M)

FY18.3Q(9M)Sony Financial Holdings Inc.

11.2

9.3

11.1

0
FY16.3Q(9M)All Rights Reserved

FY17.3Q(9M)

FY18.3Q(9M)8Operating Performance :Sony Life (Non-consolidated) (2)
Number and Amount of Policies in Force

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

60（Millionsof policies)

7.56

7.49
46.7

＋4.6%

Annualized premiums from insurance in force

Number of policies in force＋3.6%（JPY tn）(Individual Life Insurance + Individual Annuities)

＋2.6%

8

6

＋3.5%

400

15

2

200

0
Mar. 17

＋2.6%

600

4

0
Dec. 18

Sony Financial Holdings Inc.

871.1

848.8

800

30

Dec. 17

842.4

＋3.4%

48.8

47.2

45

7.76

（JPY bn）

Of which, third-sector

＋2.8%

190.7

191.8

Dec. 17Mar. 18

＋2.2%

196.0

0

All Rights Reserved

Dec. 18

9

Operating Performance :Sony Life (Non-consolidated) (3)Lapse and Surrender Rate*(Individual Life Insurance + Individual Annuities)
Lapse and surrender rate (Annual)

Lapse and surrender rate (9M)

（%）

8

6

4.97

4.71

4.27
4

2

3.18

＋1.77pt

2.94

0FY2016FY2017FY2018*The lapse and surrender rate shows the ratio derived by dividing the amount oflapses and surrenders, not adjusted for policy amount decreases, increases, andreinstatements, by the policy amount in force at the beginning of the fiscal year.

Sony Financial Holdings Inc.

All Rights Reserved

10Operating Performance :Sony Life (Non-consolidated) (4)Interest Income and Dividends

Income from Insurance Premiums(JPY bn)(JPY bn)

815.8
800

705.4

762.8

120

110.0

124.4

117.7
＋5.6%

＋6.9%

600

80

400
40
200

0

0
FY16.3Q(9M)

FY17.3Q(9M)

FY18.3Q(9M)Sony Financial Holdings Inc.

FY16.3Q(9M)All Rights Reserved

FY17.3Q(9M)

FY18.3Q(9M)11Operating Performance :Sony Life (Non-consolidated) (5)Ordinary Profit

Core Profit(JPY bn)

Core profit

80

65.8
60

(JPY bn)

Adjusted core profit

70.6

71.8

(9.8%)

59.2
61.6+16.6%

60.5

60
50

63.7

45.1

41.9 ＋44.4%

40

40

30
20

20

10
0

0
FY16.3Q(9M)

FY17.3Q(9M)

FY16.3Q(9M)

FY18.3Q(9M)(Reference) Impact on core profit

FY17.3Q(9M)

FY18.3(9M)(Reference) Main differences from core profit(JPY bn) FY16.3Q(9M) FY17.3Q(9M) FY18.3Q(9M)(JPY bn) FY16.3Q(9M) FY17.3Q(9M) FY18.3Q(9M)

Positive spread

11.1

13.9

14.0

Provision of policy reserves forminimum guarantees for variable
life insurance (*)

Capital gains (losses) excluding gains
or losses on hedges (*)

0.0

(9.4)

1.6

(4.5)

(4.8)

(22.1)

Gains (losses) on hedges of variable
life insurance(14.2)(13.5)

1.6

Adjusted core profit (**)

59.2

61.6

71.8

Provision of contingency reserve (*)

(6.2)

(5.6)

(6.3)

*“Provision of policy reserves for minimum guarantees for variable life insurance” and “Provision of contingency reserve” are described as negative amount.
Capital gains (losses) exclude gains or losses on hedges of variable life insurance.
**Adjusted core profit = (Core profit) – (Positive spread) – (Provision of policy reserves for minimum guarantees for variable life insurance)

Sony Financial Holdings Inc.

All Rights Reserved

12

Operating Performance :Sony Life (Non-consolidated) (6)
Number of Lifeplanner Sales Employees＋138(Number)

5,000

5,142

4,933

4,942

4,974

4,968

Mar. 17

Jun. 17

Sep. 17

Dec. 17

5,135

5,147

5,106
5,106
(41)

4,500

4,000

3,500

0
3,000

Sony Financial Holdings Inc.

Mar. 18

Jun. 18

All Rights Reserved

Sep. 18

Dec. 1813

Highlights of Operating Performance:
Sony Assurance
Ordinary revenues

Ordinary profit(JPY bn)

82.4

＋4.7%

＋46.7%(JPY bn)

86.2

5.0

FY17.3Q(9M)

FY18.3Q(9M)◆Both ordinary revenues and ordinary profit
increased year on year.
◆Ordinary revenues expanded owing to anincrease in net premium written for mainstay
automobile insurance.
◆Ordinary profit increased year on year due
mainly to a decline in the net expense ratio
and the effect of higher revenues.

FY18.3Q(9M)

Change

82.4

86.2

+3.8

+4.7%

Underwriting income

81.0

84.7

+3.6

+4.5%

Investment income

1.3

1.5

+0.1

+13.0%

Ordinary expenses

77.3

78.9

+1.5

+2.0%

Underwriting
expenses

56.7

58.4

+1.6

+2.9%

Operating generaland administrative
expenses

20.6

20.4

(0.1)

(0.7%)

Ordinary profit

5.0

7.3

＋2.3

＋46.7%Net income

3.6

5.2

＋1.6

+44.3%

Ordinary revenues

7.3

FY17.3Q(9M)(JPY bn)

Mar. 18

Dec. 18

Change from
Mar. 18

Underwriting reserves

117.0

124.7

+7.6

+6.6%

Net assets

33.1

35.3

+2.1

+6.5%

Total assets

204.3

210.4

+6.1

+3.0%

Sony Financial Holdings Inc.

All Rights Reserved

14

Overview of Operating Performance:
Sony Assurance
FY17.3Q(9M)

FY18.3Q(9M)Direct premiums written

80.0

83.9

＋4.8%

Net premiums written

81.0

84.6

+4.5%

Net losses paid

38.5

42.0

＋9.1%

Underwriting profit

3.7

5.9

＋58.3%Net loss ratio

54.4%

56.7%

＋2.3ptNet expense ratio

27.1%

25.7%

(1.4pt)Combined ratio

81.5%

82.4%

+0.9pt(JPY bn)

Change<Reasons for changes>◆ Steadily increased in its
mainstay automobile
insurance.
◆ Rose due to higher insurance
payments driven by natural
disasters.
◆ Declined due mainly to adecrease in system-related
expenses.

Notes:Net loss ratio = (Net losses paid + Loss adjustment expenses ) / Net premiums written
Net expense ratio = Expenses related to underwriting / Net premiums written

FY17.3Q(9M)

FY18.3Q(9M)

ChangeE. I. loss ratio

61.8%

61.5%

(0.3pt)E. I. loss ratio +Net expense ratio

88.9%

87.2%

(1.7pt)◆ Declines due mainly to adecrease in provision forreserve for outstanding losses.

Note: E.I. loss ratio = (Net losses paid + Provision for reserve for outstanding losses + Loss adjustment expenses) / Earned premiums[Earthquake insurance and compulsory automobile liability insurance are excluded from the above calculation.]Mar. 18
Non-consolidated
solvency margin ratio

782.1%

Dec. 18

Change from
Mar. 18

872.5%

Sony Financial Holdings Inc.

+90.4pt

All Rights Reserved15Sony Assuranceʼs Underwriting Performanceby Type of Policy
Net Premiums Written

Direct Premiums Written
FY17.3Q(9M)

FY18.3Q
(9M)

148

244

+64.5%－－－

Personal accident

6,515

6,576

+0.9%

Voluntary
automobile

73,37977,103

+5.1%

－

－

－

80,04383,924+4.8%

FY17.3Q(9M)

FY18.3Q
(9M)

Fire

5

11

+102.0%Marine2

10+273.5%

Personal accident

2,029

2,218

+9.3%

Voluntary
automobile

35,501

38,760

+9.2%

995

1,030

+3.5%

38,53442,031+9.1%(JPY ｍn)

Fire
MarineCompulsory
automobile liability
Total

Net losses paid
(JPY ｍn)

Compulsory
automobile liability
Total

FY17.3Q(9M)

FY18.3Q
(9M)

Fire

11

68

＋502.5%

Marine0(0)－Personal accident

6,671

6,653

(0.3%)

Voluntary
automobile

73,20076,865＋5.0%Compulsory
automobile liability

1,132

1,110

(1.9%)

Total

81,016

84,699+4.5%(JPY ｍn)

ChangeChange*Medical insurance is included in personal accident.

ChangeSony Financial Holdings Inc.

All Rights Reserved

16

Operating Performance:
Sony Assurance (1)Ordinary Profit andAdjusted Ordinary Profit

Net Premiums Written andNumber of Policies in Force
Voluntary automobile insurance

Personal accident insurance

Others(JPY bn)

80

84.6

81.0
74.2

＋4.5%

60

(JPY bn)

Adjusted ordinary profit

Ordinary profit

10.0

10

＋32.6%

8

7.6

7.3

7.3

6

4

40

＋46.7%

4.9

5.0

FY16.3Q(9M)

FY17.3Q(9M)220

0
FY18.3Q(9M)*Adjusted ordinary profit = Ordinary profit + Provision for catastrophe reserve

0
FY16.3Q(9M)

FY17.3Q(9M)

FY18.3Q(9M)

Note: Most of personal accident insurance is medical insurance.

(Reference) Provision for catastrophe reserve(JPY bn)

Provision for catastrophe reserve

FY16.3Q(9M)

2.3

FY17.3Q(9M)

2.5

FY18.3Q(9M)

2.6*Provision for catastrophe reserve is described as positive amount.

Sony Financial Holdings Inc.

All Rights Reserved

17

Operating Performance:
Sony Assurance (2)Earned/Incurred Loss Ratio +Net Expense Ratio
Earned/Incurred loss ratio(Reference) Combined Ratio＜参考＞(Net Loss Ratio+ Net Expense Ratio)
Net loss ratio

Net expense ratio

（%）

（%）

100

100

90.6

89.2

89.2

(1.7pt)

80

60

87.2

88.9

62.3

60.7

62.9

61.8
(0.3pt)85.8

Net expense ratio

84.4

83.5

80

61.5

60

82.4

81.5
+0.9pt

57.5

55.9

57.2

54.4

56.7
＋2.3pt40

40(1.4pt)

20
28.3

28.5

26.3

27.1

20
25.7

(1.4pt)

28.3

28.5

26.3

27.1

25.7

FY16

FY17

FY16.3Q

FY17.3Q

FY18.3Q

0

0
FY16
FY17
FY16.3Q
FY17.3Q
FY18.3Q
Notes:(9M)
Earned/Incurred loss ratio = (Net losses paid + Provision for reserve foroutstanding losses + Loss adjustment expenses) / Earned premiums[Earthquake insurance and compulsory automobile liability insurance are excluded
from the above calculation.]Sony Financial Holdings Inc.

(9M)

Notes:Net loss ratio = (Net losses paid + Loss adjustment expenses) /Net premiums written
Net expense ratio = Expenses related to underwriting / Net premiums written

All Rights Reserved18

Highlights of Operating Performance:
Sony Bank (Consolidated/Non-consolidated)<Consolidated>＜Consolidated＞
Ordinary revenues
Ordinary profit

29.6

FY18.3Q(9M)

Ordinary revenues

29.6

33.7

+4.1

+13.9%

Ordinary profit

5.1

7.0

＋1.9

＋37.9%

Profit attributable to ownersof the parent

3.3

4.6

＋1.3

＋40.3%

FY17.3Q(9M)

FY18.3Q(9M)

Ordinary revenues

26.9

30.5

+3.6

+13.4%

Gross operating profit

15.6

17.9

+2.3

+14.9%Net interest income

15.3

17.2

+1.8

+12.4%Net fees and commissions

(2.4)

(2.3)

＋0.1

－

Net other operating income

2.7

3.0

+0.2

+10.8%

General and administrative
expenses

11.6

11.7

+0.0

+0.8%

Net operating profit

4.0

6.2

+2.1

+53.8％

Ordinary profit

4.6

6.3

+1.7

+37.6%Net income

3.1

4.4

+1.2

+40.3%

Mar. 18

Dec. 18

85.7

84.1

(1.5)

(1.8%)

6.0

2.3

(3.6)

(60.8%)

2,635.0

2,815.8＋180.8+6.9%(JPY bn)+13.9%+37.9%

33.7
7.0<Non-consolidated>(JPY bn)

5.1

FY17.3Q(9M)

FY17.3Q(9M)

FY18.3Q(9M)<Consolidated>◆Both ordinary revenues and ordinary profit rose year
on year due to increases in interest income on
investment securities and on loans in line with agrowing balance of mortgage loans.
＜Non-consolidated＞◆ Both gross operating profit and net operating
profit increased.
Net interest income increased due to increased ininterest income on investment securities and loans.

(JPY bn)
Net assets
Net unrealized gains onother securities, net of taxes
Total assets

Sony Financial Holdings Inc.

All Rights Reserved

ChangeChangeChange from
Mar. 18

19

Overview of Operating Performance:
Sony Bank (Non-consolidated) (1)Change from
Mar. 18

Dec. 17Mar. 18

Dec. 18

Customer assets

2,338.2

2,343.0

2,453.6+110.5+4.7%

Deposits

2,213.4

2,219.3

2,336.6+117.2+5.3%

Yen

1,847.0

1,814.7

1,931.5+116.8

+6.4%

366.4

404.6

405.0

+0.4

+0.1%

Investment trusts

124.7

123.7

117.0

(6.7)

(5.4%)

Loans outstanding

1,573.8

1,596.3

1,673.5

＋77.2

+4.8%

Mortgage loans

1,495.2

1,525.5

1,613.0

+87.4

+5.7%

Card loans

18.6

18.8

18.3

(0.5)

(2.9%)

Others

59.9

51.8

42.2

(9.6)

(18.6%)

9.46%

10.45%

10.34%(JPY bn)

Foreign currencies

Non-consolidated capital *2
Adequacy ratio（domestic standard）*1(0.11pt)<Reasons for changes>◆ Increased due mainly to an increasein newly accumulated funds via theincreased number of accounts, aswell as a conversion from foreign
currencies backed by yen
depreciation.
◆ Decreased due to a conversion and atransfer from foreign ordinary
deposits into yen deposits led by yen
depreciation, despite an increase inforeign currency time deposits.

◆ Rose due to a steady increase inmortgage loans.

*1 Loans in others include corporate loans of ¥42.2 billion*2 Please refer to the graph of the non-consolidated capital adequacy ratio (domestic standard) on page 23.

Sony Financial Holdings Inc.

All Rights Reserved

20Overview of Operating Performance:
Sony Bank (Non-consolidated) (2)<Reference> On Managerial Accounting Basis<Reference> Interest Spread(Managerial Accounting Basis)

FY17.3Q(9M)

FY18.3Q
(9M)

15.6

17.9

+2.3

+15.0%

①

17.0

18.9

+1.8

+11.1%Net fees and commissions*2 ②

(2.1)

(1.9)

+0.1

―

Net other operating income*3

0.6

0.9

+0.2

+43.3%

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

14.9

16.9

+2.0

+13.7%

Operating expenses and other
Expenses
③

11.6

11.7

+0.1

+1.4%

Net operating profit(core profit) ＝(A)－③

3.3

5.2

+1.8

+56.7%(JPY bn)
Gross operating profit*1

Net interest income

Change■Managerial accounting basis
The following adjustments are made to the figures on a financial account for profits andlosses 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 adjustments (*1 and *2), mainly consistsof profits and losses for bond and derivative dealing transactions.
■Core profit
Profits and losses exclude net other operating income, which includes those on bond andderivative dealing transactions, and stands for Sony Bankʼs basic profits.

Yield on investment（%）

Yield on financing

Interest spread

1.18

1.12
1

0.90

+0.02pt

0.92

0.5

0.22

0.26

0
FY17.3Q(9M)

FY18.3Q(9M)

Note: Interest spread=(Yield on investment)-(Yield on financing)Sony Financial Holdings Inc.

All Rights Reserved

21

Operating Performance:
Sony Bank (Non-consolidated) (1)
Deposits
Yen Deposits

Foreign currency deposits(JPY bn)

2,112.9
2,000

Loans

348.0

2,336.6

2,219.3
404.6

Mortgage loans＋117.2

405.0

1,500

Others(JPY bn)

1,539.6
1,500

87.1

1,673.5

1,596.3
70.7

60.5 *

+77.2

1,000

1,000
1,764.9

1,814.7

1,452.4

1,931.5

1,525.5

1,613.0500
5000Mar. 17Mar. 18

Dec. 180Mar. 17Mar. 18

Dec. 18*Corporate loans of ¥42.2 billion. Card loans of ¥18.3 billion.

Sony Financial Holdings Inc.

All Rights Reserved

22

Operating Performance:
Sony Bank (Non-consolidated) (2)Non-Consolidated Capital Adequacy Ratio

Balance of Securities by Credit Rating
AAA
BBB(Domestic Standard)

AA
A
Others（%）(JPY bn)

674.2

631.2

+36.2

15

710.5
20.9

18.1
26.1

600

306.8

299.7

10

9.75

10.45

10.34
10.34
(0.11pt)

303.0
400
82.4
109.8
200

5

135.3

160.2

232.4

298.3

0

0
Mar. 17Mar. 18

Dec. 18

Mar. 17Mar. 18

Dec. 18

Note: Calculated based on the standard FSA Notification No. 19 (2006), which
establishes standards based on Article 14-2 of the Banking Act of Japan for
determining the capital adequacy of a bank in light of the assets held by the bank.

Sony Financial Holdings Inc.

All Rights Reserved

23Forecast of Consolidated Financial Results
for the Fiscal Year Ending March 31, 2019
(FY18)

Sony Financial Holdings Inc.

All Rights Reserved24Forecast of Consolidated Financial Results for FY18
We have revised downward our full-year forecast for ordinary revenues from the figure announced on April 27, 2018.
Meanwhile, we have revised our forecasts for ordinary profit and profit attributable to owners of the parent upward.
（JPY bn）

FY17（Actual）

FY18（Forecast）

ChangeFY18.3Q（Actual）

Progress rate

Ordinary revenues

1,503.6

1,578.0 ⇒ 1,530.0+1.8%

1,129.3

73.8%

Life insurance business

1,351.2

1,416.1 ⇒ 1,366.0+1.1%

1,006.6

73.7%

Non-life insurance business

110.0

112.3 ⇒ 115.0

+4.5%

86.2

75.0%

Banking business

39.9

42.8 ⇒ 44.7

+11.9％

33.7

75.5％

Ordinary profit

66.8

83.0 ⇒ 92.0

+37.6％

74.0

80.5％

Life insurance business

54.1

70.9 ⇒ 78.1

+44.2％

60.1

77.0％

Non-life insurance business

6.5

6.5 ⇒ 6.8

+3.4％

7.3

108.7％

Banking business

7.1

7.0 ⇒ 8.3

+16.1％

7.0

84.9％

Profit attributable toowners of the parent

51.8

55.0 ⇒ 60.0

+15.6％

50.4

84.1％

<Ordinary revenues and ordinary profit in each business>■Life insurance businessWe have revised downward our forecast for ordinary revenues because performance in FY18.3Q (9M) was below our initial expectations. However,
we have revised upward our forecast for ordinary profit. Despite the recording of an impairment loss relating to available-for-sale securities in thegeneral account in FY18.3Q (9M), an increase in lapses caused the provision of policy reserve to undershoot initial expectations. Also, in the generalaccount, net gains (losses) on derivative transactions to hedge market risk related to available-for-sale securities outpaced our expectations.
■Non-life insurance businessWe have revised upward our forecast for ordinary revenues, as automobile insurance premium revenues exceeded our initial expectations. Although
we expect to see increases in operating expenses and the provision for policy reserves in FY18.4Q (3M), we have revised upward our ordinary profit
forecast because performance in FY18.3Q (9M) exceeded initial expectations.
■Banking businessWe have revised upward our forecast for ordinary revenues and ordinary profit because results in FY18.3Q (9M) were higher than expected,
owing to such factors as higher interest income on investment securities.

Sony Financial Holdings Inc.

All Rights Reserved25Sony Lifeʼs MCEV and ESR
as of December 31, 2018

Some parts of the calculations of MCEV adopted simplified method except for those as of March 31, 2018.
Please keep in mind that the validity of these calculations has not been verified by outside specialists.
*In this part, figures, ratios and percentage changes have been rounded.

Sony Financial Holdings Inc.

All Rights Reserved26Sony Lifeʼs MCEV
ChangefromMar. 18

ChangefromSep. 18

Mar. 18

Sep. 18

Dec. 18

1,633.2

1,715.3

1,664.6＋31.5(50.6)

Adjusted net worth

1,786.1

1,560.0

1,824.1＋38.0＋264.1

Value of existing business(152.9)155.3(159.4)(6.5)(314.7)(JPY bn)

FY17.4Q(3M)

FY18.1Q(3M)

FY18.2Q(3M)

FY18.3Q(3M)

FY18.3Q(9M)

New business value

21.2

21.9

22.6

23.7

68.2

New business margin

6.1%

7.1%

6.9％

7.3％

7.1％

(JPY bn)

MCEV

 Reasons for changes in MCEV
・MCEV as of December 31, 2018 decreased ¥50.6 billion from September 30, 2018, due mainly to a decrease
in interest rates in Japanese yen.
 New business value / New business margin
・New business value for FY18.3Q (3M) was ¥23.7 billion, due to a steady acquisition of new policies.
・New business margin for FY18.3Q (3M) was up 0.4pt from FY18.2Q (3M), due mainly to the level of U.S. dollar
interest rates was higher through FY18.3Q (3M) compared with FY18.2Q (3M).

Notes:
1. Calculated MCEV as of June 30, 2018 onward by using mainly updated economic assumptions and lapse and surrender rate from March 31, 2018.
2. New business value and new business margin are calculated accumulating new business value for each month based on economic assumptions at the end of each month.
The figures for FY18 onward reflect the revision in the insurance risk measurement method and others which revised in March 31, 2018. For details of the revision in
the insurance risk measurement method and others, please refer to the Presentation Materials “Consolidated Financial Results for the Fiscal Year Ended March 31, 2018
and Sony Lifeʼs Preliminary MCEV as of March 31, 2018.”*Please refer to the appendix page 41-44 for trend on bond yields and yield curves.

Sony Financial Holdings Inc.

All Rights Reserved27Sony Lifeʼs ESR(JPY bn)

Insurance riskMar. 18

Sep. 18

Dec. 18

497.5

488.7

513.9

380.6

407.6

385.3

275.3

300.7

264.1

Operational risk

31.0

33.0

31.9

Counter party risk

2.6

2.7

2.9

(182.0)(187.8)(185.9)

729.7

744.1

748.0

Market-related risk
Of which, interest rate risk

Variance effect
The risk amount based on
economic value(JPY bn)

MCEV + Frictional costs
ESR

Mar. 18

Sep. 18

Dec. 18

1,655.8

1,731.6

1,685.7

227%

233%

225%

 The risk amount based on economic value as of December 31, 2018 amounted to ¥748.0 billion, up ¥3.9 billion
from September 30, 2018, due mainly to an increase in insurance risk.
 ESR as of December 31, 2018 was 225%, down 7pt from September 30, 2018.
Notes:
1. The risk amount based on economic value refers to the total amount of Sony Lifeʼs risks comprehensively examined by a market consistent approach, including
insurance risk and market-related risk and others.
2. The solvency risk capital on an economic value basis is calibrated at VaR (99.5) over one year and based on the internal model.
3. Risk amount excluding the variance effect within market-related risk.
4. ESR=(MCEV + Frictional costs) / Risk amount based on economic value.

Sony Financial Holdings Inc.

All Rights Reserved28

Appendix

Sony Financial Holdings Inc.

All Rights Reserved29

Recent Topics
 Sony Bankʼs Mortgage Loans through Sony Life
Sony Life accounts for 11% of the amount of new mortgage loans for FY18.3Q (9M)Sony Life accounts for 20% of the balance of mortgage loans as of December 31, 2018
*Sony Life started handling banking agency business in January 2008.

 Sony Assuranceʼs Automobile Insurance sold by Sony Life
Sony Life accounts for 5% of new automobile policies for FY18.3Q (9M)*Sony Life started handling automobile insurance in May 2001.

 Highlights on and after FY18.3Q
2018-10-01

Sony Bank began offering new mortgage loan, "Fixed-rate Select Mortgage Loan" and new group credit life
insurance with disease protection rider

2018-10-15

Sony Assurance began selling new internet-only fire insurance

2018-11-30

Sony Financial Ventures Invested in CROWD CREDIT, Inc., a Social Lending Company

2018-12-12Sony Life extended its simplified claims process for hospitalization benefits and operation insurance benefits

2019-1-31

Sony Lifecare announced to open new 5th nursing care home in Shinjuku, Tokyo *planning to open in spring, 2020

Sony Financial Holdings Inc.

All Rights Reserved30Sony Lifeʼs Product Portfolio
Annualized Premiums from New Policies by Product
FY18.3Q（9M）FY17（12M）¥73.0 billion

U.S. dollardenominatedwhole life
13%
Yen whole
life 6%

Endowment/
Annuities
29%

U.S. dollardenominatedsinglepremium
whole life
insurance
6%¥57.0 billion

Yen wholelife
3%
Endowment/
Annuities
32%

U.S. dollardenominatedsinglepremium
whole life
insurance
6%

Protection-type（term-life）
45％

Protection-type（term-life）
47％

Sony Financial Holdings Inc.

U.S. dollardenominatedwhole life 14%

All Rights Reserved31Sony Lifeʼs Asset Management
Purchase Securities in the General AccountFY17（12M）

Japanesestocks 0.5%

FY18.3Q（9M）

Foreign
bonds
23.5%

Foreign
bonds
18.5%

Japanese
corporate
bonds
25.9%

Japanesestocks 0.3%

JGBs
55.1%
社債
11.9%

Japanese
corporate
社債
bonds
25.9%
13.5%

JGBs
62.7%

国債
85.3%
Notes:
1. Japanese corporate bonds include FILP agency bonds and Government-guaranteed bonds.
2. The graphs above are asset allocation for the relevant period. Total invested amount for the relevant period as 100%.
(excluding, investment in subsidiaries and affiliates, and strategic investments)

Sony Financial Holdings Inc.

All Rights Reserved32Sony Lifeʼs General Account Assets
Breakdown of General Account Assets
Mar. 18<Asset management review>Dec. 18

Amount%Amount%Japanese bonds(including JGBs)

7,281.1

86.3%

7,637.9

85.4%

Japanese stocks

38.4

0.5%

29.2

0.3%

Foreign bonds

366.5

4.3%

503.4

5.6%

Foreign stocks

30.3

0.4%

24.2

0.3%

Money held in trust

270.5

3.2%

267.6

3.0%

Policy loans

189.4

2.2%

195.6

2.2%

Real estate*

92.3

1.1%

91.1

1.0%

Cash and call loans

40.8

0.5%

55.4

0.6%

Others

129.1

1.5%

141.0

1.6%

8,438.8

100.0%

8,945.9

100.0%

Total*Real estate is the total of land, buildings, and construction in progress.

Sony Financial Holdings Inc.

We have continued to accumulate
ultralong-term bonds to match the liability
characteristics of insurance policies withlong-term maturities with the aim of
reducing interest rate risk.
<Bond duration>
Mar. 17 21.3 years
Mar. 18 21.4 years
Dec. 18 21.3 years■ Investment in the money held in trust is
mainly into Japanese bonds.
■ The holding ratio on the real status ofJapanese bonds including those invested
in money held in trust in the generalaccount :Mar. 17・・・90.1%
Mar. 18・・・89.5%
Dec .18・・・88.4%

All Rights Reserved33Sony Life: Fair Value Information on Securities(General Account Assets)
Fair Value Information on Securities
Fair value information on securities with market value (except trading-purpose securities)
Mar. 17Mar. 18

Dec. 18
Net unrealized
gains (losses)

Carrying
amountFair value

Net unrealized
gains (losses)

Carrying
amountFair value

Net unrealized
gains (losses)

Carrying
amountFair value

6,068.6

7,514.2

1,445.5

6,467.9

8,050.6

1,582.6

6,711.2

8,320.7

1,609.5

Policy reserve matching
bonds

277.3

303.3

25.9

401.9

436.8

34.8

603.6

647,4

43.8

Available-for-salesecurities

896.5

1,069.9

173.3

921.9

1,091.1

169.1

965.1

1,123.7

158.6

Japanese bonds(including JGBs)

852.6

1,013.3

160.7

847.0

1,002.1

155.0

867.3

1,017.7

150.4

Japanese stocks

13.6

27.0

13.3

13.6

30.6

16.9

10.5

20.3

9.7

Foreign securities

30.0

29.1

(0.8)

61.0

58.1

(2.9)

87.1

85.3

(1.7)

Other securities

0.1

0.3

0.1

0.1

0.2

0.1

0.1

0.2

0.1

7,242.5

8,887.5

1,644.9

7,791.9

9,578.6

1,786.7

8,279.9

10,091.8

1,811.9（JPY bn）
Held-to-maturity securities

Total

Note: The above table includes money held in trust other than trading-purpose securities.

Valuation gains (losses) on trading-purpose securities
Mar. 17
Balance sheet
amountMar. 18

Net valuation gains (losses)
recorded in income

2.0（JPY bn）(0.1)

Balance sheet
amountDec. 18

Net valuation gains (losses)
recorded in income－

Sony Financial Holdings Inc.

(0.0)

All Rights Reserved

Balance sheet
amount1.1

Net valuation gains (losses)
recorded in income

(0.3)

34

Sony Lifeʼs Interest Income and Dividends (Details)（JPY mn）

Cash and deposits

FY17.3Q(9M)

FY18.3Q(9M)

Change00+ 145.4%

Japanese bonds(including JGBs)

93,50497,082+ 3.8%

Japanese stocks

380

377

(0.9%)

10,47914,538+ 38.7%127

293+ 130.9%

Loans

4,957

5,124

+ 3.4%

Real estate

8,048

6,578

(18.3%)

290

409+ 40.9%117,788

124,403+ 5.6%

Foreign securities
Other securities

Others
Total

Sony Financial Holdings Inc.

All Rights Reserved35Sony Lifeʼs Capital Gains (Losses)
FY17.3Q (9M)

FY18.3Q (9M)

25,80914,420Losses on trading securities, net－

293

Losses on sale of securities…(3)034Devaluation losses on securities…(4)

－

4,026

23,990784

Losses on hedges of variable life
insurance…(1)13,515(1,696)

Losses on hedges of available-forsale securities…(2)5,877(1,692)Losses on U.S. dollar-denominatedinsurance…(5)

3,445

4,141

－

－

1,819

9,280

1,155

9,280

（JPY mn）
Capital losses

Losses on derivatives, net

Foreign exchange losses, net
Other capital losses
Losses on U.S. dollar-denominatedinsurance（the provision of policy
reserves for foreign exchange
fluctuations)…(5)FY17.3Q (9M)

FY18.3Q (9M)

2,851

17,726

Income from trading securities, net

47－

Gains on sale of securities…(3)

0

4,581

Gains on derivatives, net

－

－

2,804

13,1452,189

13,036－－(22,958)

3,306（JPY mn）
Capital gains

Foreign exchange gains, net
Gains on U.S. dollardenominated insurance(foreign exchange gains inseparate accounting）…(5)Other capital gains

Net capital gains (losses)

Note: The figures of income (losses) from trading securities, net, gains (losses)
on derivatives and foreign exchange gains (losses), net were recorded
after offsetting gains and losses of each item.

●Capital Gains (Losses) on Main Items, Net Amounts
FY17.3Q (9M)

FY18.3Q (9M)

(1) Gains (Losses）on hedges of variable
life insurance(13,515)1,696(2) Gains (losses）on hedges ofavailable-for-sale securities(5,877)1,692(3) Gains (losses) on sale of securities

0

4,547

(4) Devaluation losses on securities－(4,026)(2,411)(384)（JPY mn）(5) Gains (losses) on U.S. dollardenominated insuranceSony Financial Holdings Inc.

All Rights Reserved36Sony Lifeʼs Quarterly Trend on New Policy Amount
Quarterly Trend on New Policy Amount(Individual Life Insurance + Individual Annuities)(JPY bn)

2,000

1,842.4
1,674.7

1,750
1,500
1,250

1,457.7
1,260.0

1,189.0
1,050.7

1,115.8

1,114.8

FY17.1Q

FY17.2Q

1,485.0

1,435.5

FY18.2Q

FY18.3Q

1,214.7

1,000
750
500
250
0
FY16.1Q

FY16.2Q

FY16.3Q

FY16.4Q

Sony Financial Holdings Inc.

FY17.3Q

FY17.4Q

All Rights Reserved

FY18.1Q

37

Sony Lifeʼs Quarterly Trend on
Annualized Premiums from New Policies
Quarterly Trend on Annualized Premiums from New Policies(Individual Life Insurance + Individual Annuities)

Annualized premiums from new policies

Of which, third-sector(JPY bn)

25

23.9
20.5

20

19.5

18.2
15.3

15

21.1
18.7

16.1

16.2

3.1

2.8

3.3

3.6

3.3

FY17.1Q

FY17.2Q

FY17.3Q

FY17.4Q

FY18.1Q

19.2

18.9

3.9

3.8

FY18.2Q

FY18.3Q

10

5
4.1

3.9

FY16.1Q

FY16.2Q

0

3.1
FY16.3Q

4.4
FY16.4Q

Sony Financial Holdings Inc.

All Rights Reserved38Sony Lifeʼs Quarterly Trend on New Business Value
Quarterly Trend on New Business Value(JPY bn)

25
19.9

20

21.2

21.9

22.6

23.7

17.2
14.1

15

12.2
10.2

10
5.0

5
0
（0.2)
(5)

FY16.1Q FY16.2Q FY16.3Q FY16.4Q FY17.1Q FY17.2Q FY17.3Q FY17.4Q FY18.1Q FY18.2Q FY18.3Q
Note: New business value is calculated accumulating new business value for each month based on economic assumptions at the end of each month.
The figures for FY18 onward reflect the revision in the insurance risk measurement method and others which revised on March 31, 2018.

Sony Financial Holdings Inc.

All Rights Reserved

39

Operating Performance : AEGON Sony Life Insurance◆AEGON Sony Life Insurance sells individual variable annuities.

Number and Amount of Policies in Force

Number and Amount of New Policies
New policy amount(JPY bn)60

Number of new polices [ ]53.3[10.5]

50

Policy amount in force

Number of policies in force [ ](Thousandsof policies)(JPY bn)

15

600

10

400

80

5

200

40

0

0-

-0

523.1

520.6

[90.9][92.5](Thousandsof policies)

519.3[94.0]

120

37.9
[8.0]

40
30

20.3
[4.1]

20
10
0

FY16.3Q(9M)
FY17.3Q(9M)
FY18.3Q(9M)Net income (losses) for AEGON Sony Life Insurance and SA Reinsurance(JPY bn)

FY17.3Q(9M) FY18.3Q(9M)

Dec. 17Mar. 18

Dec. 18

ChangeAEGON Sony Life Insurance

（3.3)

(2.6)

+0.7

SA Reinsurance

(0.2)

1.7

+2.0

AEGON Sony Life Insurance and SA Reinsurance are equity method companies, 50-50 joint venture established by Sony Life and AEGON Group.
SA Reinsurance prepares its financial statements in accordance with U.S. GAAP. 50% of the net income (losses) for AEGON Sony Life Insurance andSA Reinsurance are recognized as investment profit (losses) on equity method in the SFHʼs consolidated net income.

Sony Financial Holdings Inc.

All Rights Reserved

40Trend on JGB Yields (Par rate)
1.20%

10 years
20 years

1.00%

30 years
40 years

0.80%

0.60%

0.40%

0.20%

0.00%
Mar.18Apr.18 May.18 Jun.18

Jul.18Aug.18 Sep.18

Oct.18Jul.18

Sep.18

Nov.18 Dec.18

As of the end of each month
Mar.18Apr.18May.18Jun.18Aug.18Oct.18

Nov.18

Dec.1810 years

0.04%

0.06%

0.04%

0.04%

0.05%

0.11%

0.13%

0.13%

0.10%

0.01%

20 years

0.53%

0.53%

0.51%

0.51%

0.53%

0.62%

0.66%

0.65%

0.60%

0.51%

30 years

0.74%

0.75%

0.72%

0.72%

0.74%

0.83%

0.89%

0.88%

0.82%

0.72%

40 years

0.89%

0.88%

0.86%

0.85%

0.86%

0.97%

1.03%

1.01%

0.95%

0.85%

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41Trend on Risk-free Rate (Japanese yen/Par rate)
2.00%
Convergence
period:20 yearMar.181.50%

Jun.18
Sep.18
Dec.18

1.00%

0.50%

0.00%
Last liquid point:
40 year(0.50%)△0.50%

1 year

10

20

30

40

50

60

70

80

years

years

years

years

years

years

years

years

*For above risk-free rate, we employ the Smith-Wilson method for extrapolation so that the 60-year forward rate will coverage on the UFR (3.5%).

Sony Financial Holdings Inc.

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42Trend on U.S. Dollar Bonds Yields (Par rate)
3.50%
10 years

3.40%

20 years

3.30%

30 years

3.20%
3.10%
3.00%
2.90%
2.80%
2.70%
2.60%
2.50%
Mar.18 Apr.18 May.18 Jun.18

Jul.18Aug.18 Sep.18

Oct.18 Nov.18 Dec.18

Jul.18

Sep.18

As of the end of each month
Mar.18Apr.18May.18Jun.18Aug.18Oct.18

Nov.18

Dec.1810 years

2.74%

2.95%

2.86%

2.86%

2.96%

2.86%

3.06%

3.14%

2.99%

2.69%

20 years

2.85%

3.02%

2.93%

2.91%

3.02%

2.93%

3.14%

3.28%

3.14%

2.84%

30 years

2.97%

3.12%

3.03%

2.99%

3.08%

3.02%

3.21%

3.39%

3.29%

3.02%

Sony Financial Holdings Inc.

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43Trend on Risk-free Rate (U.S. Dollar /Par rate)
3.50%
Convergence
period: 30 year

3.00%

2.50%

Mar.18Jun.182.00%

Sep.18
Dec.18

Last liquid point:
30 year
1.50%

1 year

10

20

30

40

50

60

70

80

years

years

years

years

years

years

years

yeras

*For above risk-free rate, we employ the Smith-Wilson method for extrapolation so that the 60-year forward rate will coverage on the UFR (3.5%).

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44

Detail of Consolidated Adjusted ROE

FY2017(12M)

FY17.3Q(9M)

FY18.3Q(9M)

Consolidated Adjusted ROE

6.1％

4.5%

5.1%

(Sony Life) Core ROEV*

5.9％

4.2％

4.8％

(Sony Assurance) Adjusted ROE

16.1％

12.5％

14.3％

(Sony Bank) ROE

5.5％

3.9%

5.3%

*The figures for FY17 and FY17.3Q excluded the impact of the revision in the insurance risk measurement method and others
for Sony Life.

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Detail of Consolidated Adjusted Profit andConsolidated Adjusted Capital
Adjusted profit（Numerator)
Sony Financial Group（consolidated）(JPY bn）

Adjusted profit (consolidated)

Sony Life (non-consolidated) (JPY bn）

Adjusted capital (Denominator）
FY201798.8
FY2017

FY17.3Q(9M)

FY18.3Q
(9M)

70.8

90.8

FY17.3Q(9M)

FY18.3Q(9M)

Sony Financial Group（consolidated）

FY2017

FY17.3Q(9M)

FY18.3Q(9M)

1,607.6

1,592.2

1,773.5

FY2017

FY17.3Q(9M)

FY18.3Q(9M)

1,441.0

1,441.0

1,633.1

23.1

23.1

26.2

③MCEV as of the end of the period *2*3

1,536.5

1,509.5

1,664.6

Adjusted capital

1,477.2

1,463.7

1,635.7

FY2017

FY17.3Q(9M)

FY18.3Q(9M)①The average amount of net assets
during the period

33.1

31.6

35.3

②The average amount of catastrophe
reserve (after tax) during the period

15.0

14.4

17.0

③The average amount of reserve forprice fluctuations (after tax) during theperiod

0.1

0.1

0.1

Adjusted capital （①＋②＋③）

45.2

44.1

50.4

FY2017

FY17.3Q(9M)

FY18.3Q
(9M)

85.1

84.3

87.3

Adjusted capital (consolidated)
Sony Life (non-consolidated)

New business value *1

70.4

49.2

68.2

①MCEV as of the beginning of the
fiscal year

Expected existing business
contribution *1

16.3

12.8

10.7

②Dividends paid

Adjusted profit

86.7

62.0

78.9

FY2017

FY17.3Q(9M)

FY18.3Q(9M)

Sony Assurance(JPY bn）

Net income

4.8

3.6

5.2

Provision amount for catastrophe
reserve (after tax)

2.4

1.8

1.9

Provision amount for reserve forprice fluctuations (after tax)

0.0

0.0

0.0

Adjusted profit

7.3

5.5

7.2

Sony Bank (consolidated)(JPY bn）

Profit attributable to owners of theparent

FY20174.7

FY17.3Q(9M)

FY18.3Q
(9M)

3.3

4.6

(JPY bn）(JPY bn）（①－②＋③）/２

Sony AssuranceSony Bank (consolidated)(JPY bn）(JPY bn）

Adjusted capital（The average amountof net assets during the period）*1. Please keep in mind that the validity of these calculations has not been verified by outside specialists for the figures for FY17.3Q and FY18.3Q.
*2. Please keep in mind that the validity of these calculations has not been verified by outside specialists.
*3. The figures for FY17 and FY17.3Q excluded the impact of the revision in the insurance risk measurement method and others.
Note: The figures on this page unit have been truncated. Therefore, some figures may differ from other pages.

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46

Definition of Consolidated Adjusted ROE
Calculation of Consolidated Adjusted ROE
Since each company of Sony Financial Group differs by industry such as insurance and banking,each group company calculate its “Adjusted ROE” based on adjusted profit and adjusted capital
to realize its corporate value and capital efficiency.
Sony Financial Group *Sony Life
Core ROEVSony Assurance
Adjusted ROE

Numerator(Adjusted
profit)New business value +Expected existing business
contribution

Net income (loss) + Provision
amount for catastrophe
reserve and its provision
amount for reserve for pricefluctuations, in each case②
after taxes

Denominator(Adjusted
capital)MCEV as of the beginning of
the fiscal year less dividends
paid plus MCEV as of the endof the fiscal year, divided by
two.

＋

①

④

＋

The average amount of net
assets plus the sum ofcatastrophe reserve and its
reserve for price fluctuations
during the fiscal year, ineach case after taxes⑤

Sony Bank
ROE＋

Profit (loss) attributable toowners of the parent③③＋

The average amount of net
assets during the fiscal year⑥⑥

* Consolidated Adjusted ROE = Consolidated Adjusted Profit divided by Consolidated Adjusted Capital
Consolidated Adjusted Profit ＝ ①＋②＋③
Consolidated Adjusted Capital ＝ ④＋⑤＋⑥

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47

Contact︓
Investor Relations Department
Sony Financial Holdings Inc.
TEL︓+81-3-5290-6500

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48