August 11, 2020
Sony Financial Holdings Inc.

Summary Information on Sony Life’s Financial Results
for the Three Months Ended June 30, 2020
<Contents>
1. Key Operating Performance(1) Policy Amount in Force and New Policy Amount

P.2(2) Annualized Premiums

P.2

2. Status of Investment Assets (General Account)(1) Portfolio of General Account Assets

P.3(2) Fair Value Information on Securities

P.4(3) Fair Value Information on Money Held in Trust

P.5

3. Non-consolidated Balance Sheets

P.6

4. Non-consolidated Statements of Income

P.7

5. Reconciliation to Core Profit and Non-consolidated Ordinary Profit

P.8

6. Solvency Margin Ratio

P.9

7. Status of Separate Account Assets(1) Balance of Separate Account Assets

P.10(2) Policy Amount in Force

P.10

8. Consolidated Summary

P.11

Note:
From the three months ended June 30, 2020, we have changed the method of handling gains (losses) on translationof foreign currency-denominated debt securities, within available-for-sale securities, to more appropriately reflect
the effect of hedging exchange risks. Formerly, these gains (losses) were fully recognized into net assets as net
unrealized gains (losses) on available-for-sale securities, net of taxes. Under the revised method, exchange rate
differences related to changes in market value due to foreign currencies are recognized in net unrealized gains(losses) on available-for-sale securities, net of taxes, and other differences are recognized in foreign exchange gains(losses). This change in accounting method has been retroactively applied to the fiscal year ended March 31, 2020.
Disclaimer:This English translation is prepared for the readers' convenience. When there are any discrepancies between
original Japanese version and English translation version, the original Japanese version always prevails.

11. Key Operating Performance(1) Policy Amount in Force and New Policy Amount
Policy amount in force(Number: Thousand, Amount: 100 millions of yen, %)As of June 30, 2019

As of March 31, 2020

As of June 30, 2020

NumberAmountNumber

7,559

478,040

7,708

487,789

7,699

101.9

99.9

486,392

101.7

99.7

355

20,369452

26,686

466

131.0

103.1

27,639

135.7

103.6

Category

Individual life insurance
Individual annuities
Subtotal

AmountNumberComparison toJun. 30, 2019

AmountComparison to
Mar. 31, 2020

Comparison toJun. 30, 2019

Comparison to
Mar. 31, 2020

7,914

498,410

8,160

514,476

8,165

103.2

100.1

514,032

103.1

99.9

Group life insurance－

18,830－18,016－－－

17,211

91.4

95.5

Group annuities

－

83

－

73

－

－

－

70

84.9

96.1

Notes: 1. The policy amount in force for individual annuities is equal to the sum of (a) the funds to be held at the time annuity payments are to commence for policies for which annuity payments have notyet commenced and (b) the amount of policy reserves for policies for which payments have commenced.
2. The policy amount in force for group annuities is equal to the amount of policy reserves.

New policy amount(Number: Thousand, Amount: 100 millions of yen, %)For the three months ended June 30, 2019

For the three months ended June 30, 2020

Category
NumberAmountIndividual life insurance

125

Individual annuities
Subtotal

NumberComparison to
FY19.1Q

AmountComparison to
FY19.1Q

New policies

5,498

51.7

5,498

－

68.2

1,102

70.5

1,102

－
－

New policies

Increase fromconversion

10,628

10,628

－

54

43.8

23

1,563

1,563

－

16

－

149

12,191

12,191

71

47.6

6,600

54.1

6,600

Group life insurance

－

43

43

－

－

11

27.4

11

Group annuities

－

－

－

－

－

－

－

－

Increase fromconversion

Notes: 1. The new policy amount including increase from conversion for individual annuities is equal to the funds held at the time annuity payments commence.
2. The new policy amount for group annuities is equal to the sum of the initial premium payments.

(2) Annualized Premiums
Policy amount in force
Category
Individual life insurance(Millions of yen, %)As of June 30, 2019

As of March 31, 2020

837,133

As of June 30, 2020

852,794

Comparison toJun. 30, 2019

Comparison to
Mar. 31, 2020

848,739

101.4

99.5

Individual annuities

56,13069,98672,017

128.3

102.9

Total

893,264

922,781920,756

103.1

99.8

198,651

201,358

201,389

101.4

100.0

Medical protection, living benefit protection andother products

New policies(Millions of yen, %)Category

For the three months ended
June 30, 2019

For the three months ended
June 30, 2020

Comparison to
FY19.1Q

Individual life insurance

14,012

7,408

52.9

Individual annuities

3,495

2,472

70.7

Total

17,508

9,881

56.4

3,105

1,605

51.7

Medical protection, living benefit protection andother products

Notes: 1. Annualized premiums refer to an amount that is calculated by multiplying individual premium amounts by a coefficient that differs depending on the premium payment methods, thereby
converting the figure to a per-year premium. (For single premium policies, premiums are divided by the number of coverage years.)
2. Annualized premiums for “medical protection, living benefit protection and other products” include those for medical protection benefits (hospitalization benefits, surgical procedure
benefits, etc.) and living benefit protection (benefits for specific diseases, nursing care benefits, etc.)22. Status of Investment Assets (General Account)(1) Portfolio of General Account Assets(Millions of yen)
Category
Cash and deposits, call loans
Securities repurchased under resale agreements
Pledged money for bond borrowing transaction
Monetary claims purchased
Securities under proprietary accounts
Money held in trust
Securities
Japanese bonds
Japanese stocks
Foreign securities
Bonds
Stocks, etc.
Other securities
Loans
Real estate
Deferred tax assets
Other assets
Reserve for possible loan losses
Total
Foreign currency-denominated assets

As of March 31, 2020
Amount
79,846－－－－40
9,388,609
8,364,513
28,064
995,567
966,964
28,603464
208,632
92,55919,308
126,573(652)
9,914,916
985,116

As of June 30, 2020

%
0.8
－
－
－
－
0.0
94.7
84.4
0.3
10.0
9.8
0.3
0.0
2.1
0.9
0.2
1.3
(0.0)
100.0
9.9

Note: The amount for real estate is equivalent to the total amount of land, buildings and construction in progress.

3

Amount48,864－－－－40
9,556,104
8,514,731
29,434
1,011,512
983,333
28,178426
220,30292,36022,100141,944(656)
10,081,060
1,000,558

%
0.5
－
－
－
－
0.0
94.8
84.5
0.3
10.0
9.8
0.3
0.0
2.2
0.9
0.2
1.4
(0.0)
100.0
9.9

(2) Fair Value Information on Securities
a. Securities with fair value (except trading securities)(Millions of yen)
As of March 31, 2020
Category

Held-to-maturity securities
Policy-reserve-matching bonds

As of June 30, 2020

Net unrealized gains (losses)

Carrying
amountFair value

7,349,139

9,768,470

855,937

997,896

Carrying
amountNet unrealized gains (losses)
Fair value

Unrealized
gains

Unrealized
losses

Unrealized
gains

Unrealized
losses2,419,331

2,425,393

6,061

7,385,148

9,465,965

2,080,816

2,104,338

23,522

141,958

142,397438

979,734

1,080,875

101,141

112,430

11,289

－

－

－

－

－

－

－

－

－

－

965,513

1,137,460

171,947

172,013

66

978,730

1,146,159

167,428

167,562

134

Japanese bonds

873,327

1,007,815

134,487

134,51528

875,6811,005,527

129,846

129,980

134

Japanese stocks

4,825

9,587

4,762

4,800

37

4,825

10,957

6,132

6,132

－

Foreign securities

87,359120,057

32,69732,697－

98,223

129,673

31,44931,449－Bonds

85,887

118,584

32,69732,697－96,751

127,653

30,90230,902－

Stocks, etc.

1,472

1,472

－

－

－

1,472

2,019

547

547

－

Stocks of subsidiaries and affiliated companies
Available-for-sale securities

Other securities

－

－

－

－

－

－

－

－

－

－

Monetary claims purchased

－

－

－

－

－

－

－

－

－

－

Certificates of deposit

－

－

－

－

－

－

－

－

－

－

Others

－

－

－

－

－

－

－

－

－

－

9,170,589

11,903,828

2,733,238

2,739,804

6,566

9,343,614

11,693,000

2,349,386

2,384,332

34,945

Japanese bonds

8,230,025

10,590,705

2,360,679

2,367,208

6,528

8,384,885

10,387,834

2,002,949

2,037,895

34,945

Japanese stocks

4,825

9,587

4,762

4,800

37

4,825

10,957

6,132

6,132

－

Foreign securities

935,739

1,303,535

367,795

367,795－

953,903

1,294,208

340,304

340,304－

934,266

1,302,062

367,795

367,795－

952,431

1,292,188

339,756

339,756

－

Total

Bonds
Stocks, etc.

1,472

1,472

－

－

－

1,472

2,019

547

547

－

Other securities

－

－

－

－

－

－

－

－

－

－

Monetary claims purchased

－

－

－

－

－

－

－

－

－

－

Certificates of deposit

－

－

－

－

－

－

－

－

－

－

－

－

－

Others
－
－
－
－
－
－
－
Notes: The above table includes assets that are permitted to be treated as equivalent to securities defined in the Financial Instruments and Exchange Act of Japan.

b. Carrying amounts of securities for which fair value cannot be measured reliably(Millions of yen)
Category

As of March 31, 2020

As of June 30, 2020

Held-to-maturity securities－－

Unlisted foreign bonds－－

Others－－－－Stocks of subsidiaries and affiliated companies

39,682

39,682Available-for-sale securities

4,620

4,275

Policy-reserve-matching bonds

Unlisted domestic stocks (except OTC stocks)

159

159

Unlisted foreign stocks (except OTC stocks)

243

188

Unlisted foreign bonds
Others
Total

－

－

4,216

3,927

44,302

43,9584

c. Fair Value information consisting of those stated in the previous Table a. and Table b. after evaluating foreign exchange and other gains (losses)(Millions of yen)
As of March 31, 2020
Category

Held-to-maturity securities

As of June 30, 2020

Net unrealized gains (losses)

Carrying
amountFair value

Unrealized
gains

Unrealized
lossesNet unrealized gains (losses)

Carrying
amountFair value

Unrealized
gains

Unrealized
losses7,349,139

9,768,470

2,419,331

2,425,393

6,061

7,385,148

9,465,965

2,080,816

2,104,338

23,522

Policy-reserve-matching bonds

855,937

997,896

141,958

142,397438

979,734

1,080,875

101,141

112,430

11,289Stocks of subsidiaries and affiliated companies

39,682

39,661

(21)

－

21

39,682

39,667

(15)

－

15

Available-for-sale securities

970,133

1,143,849

173,716

174,372656

983,006

1,151,538

168,531

169,202

671

Japanese bonds

873,327

1,007,815

134,487

134,51528

875,6811,005,527

129,846

129,980

134

Japanese stocks

4,985

9,747

4,762

4,800

37

4,985

11,117

6,132

6,132

－

Foreign securities

87,603

121,356

33,75333,753－

98,412130,81232,39932,399－85,887

118,584

32,69732,697－96,751

127,653

30,90230,902－

Bonds
Stocks, etc.

1,715

2,771

1,056

1,056

－

1,660

3,158

1,497

1,497

－

Other securities

4,216

4,929

712

1,303

590

3,927

4,080

152

690

537

Monetary claims purchased

－

－

－

－

－

－

－

－

－

－

Certificates of deposit

－

－

－

－

－

－

－

－

－

－

Others

－

－

－

－

－

－

－

－

－

－

9,214,892

11,949,878

2,734,986

2,742,163

7,177

9,387,572

11,738,046

2,350,473

2,385,972

35,498Japanese bonds

8,230,025

10,590,705

2,360,679

2,367,208

6,528

8,384,885

10,387,834

2,002,949

2,037,895

34,945

Japanese stocks

23,301

28,064

4,762

4,800

37

23,301

29,434

6,132

6,132

－

Foreign securities

957,348

1,326,179

368,830

368,85121

975,458

1,316,697

341,239

341,25415

Bonds

934,266

1,302,062

367,795

367,795－

952,431

1,292,188

339,756

339,756－

Stocks, etc.

23,081

24,116

1,034

1,056

21

23,026

24,509

1,482

1,497

15

Other securities

Total

4,216

4,929

712

1,303

590

3,927

4,080

152

690

537

Monetary claims purchased

－

－

－

－

－

－

－

－

－

－

Certificates of deposit

－

－

－

－

－

－

－

－

－

－

Others

－

－

－

－

－

－

－

－

－

－

(3) Fair Value Information on Money Held in Trust(Millions of yen)
As of March 31, 2020
Category

Money held in trust

As of June 30, 2020

Net unrealized gains (losses)

Balance sheet
amountFair value

40

40

－

Unrealized
gains

Unrealized
losses－－Net unrealized gains (losses)

Balance sheet
amountFair value40

40

Note: The above table includes jointly invested money held in trust, which amounted to ¥40 million as of March 31, 2020 and June 30, 2020, respectively.

Money held in trust for investment
Not applicable
Money held in trust for held-to-maturity, policy-reserve-matching and otherNot applicable

5－

Unrealized
gains

Unrealized
losses－－3. Non-consolidated Balance Sheets(Millions of yen)

As of March 31, 2020

As of June 30, 2020

AmountAmountAssets:157,709

Cash and deposits
Money held in trust

125,852

40

40

10,629,972

10,985,557

7,915,466

8,015,615

1,045

1,044

Japanese corporate bonds

616,199

665,523

Japanese stocks

50,12752,736

Foreign securities

1,765,943

1,910,671

208,632

220,302

208,069

219,730

Securities
Japanese government bonds
Japanese local government bonds

Loans
Policy loans
Commercial loans

562

571

Tangible fixed assets

93,61993,429Intangible fixed assets

28,62927,693Due from reinsurers

1,205

1,140

Other assets

99,286

119,055

Prepaid pension costs

3,271

3,378

Deferred tax assets

19,308

22,100

(652)

(656)

Reserve for possible loan losses
Reserve for investment losses(3,899)(3,899)11,237,124

11,593,994

10,004,643

10,267,065

40,40339,947

9,959,832

10,222,798

4,407

4,319

Due to agencies

2,408

1,660

Due to reinsurers

5,344

4,308

Other liabilities

Total Assets
Liabilities:
Policy reserves and others
Reserve for outstanding claims
Policy reserves
Reserve for policyholders' dividends

602,739

720,583

Accrued income tax

17,194

4,731

Lease obligations

456

437

Asset retirement obligations

1,968

1,954

583,119

713,460

Reserve for employees' retirement benefits

29,52829,649Reserve under the special laws

52,76853,44552,76853,445109

109

10,697,541

11,076,823

Common stock

70,00070,000Capital surplus

5,865

5,865

Capital reserve

5,865

5,865

Retained earnings

341,063322,232

46,62852,228OthersReserve for price fluctuations
Deferred tax liabilities on land revaluation
Total Liabilities
Net Assets:

Legal retained earnings
Other retained earnings

294,434

270,004

294,434

270,004

Total shareholders' equity

416,928

398,097

Net unrealized gains (losses) on available-for-sale securities, net of taxes

125,093

121,512Land revaluation, net of taxes(2,439)(2,439)Total valuation and translation adjustments

122,653

119,073

Total Net Assets

539,582

517,171

11,237,124

11,593,994

Unappropriated retained earnings

Total Liabilities and Net Assets

64. Non-consolidated Statements of Income(Millions of yen)

Ordinary Revenues
Income from insurance premiums
Insurance premiums
Investment income
Interest income and dividends
Income from money held in trust, net
Gains on trading securities, net
Gains on sale of securities
Gains on separate accounts, net
Other ordinary income
Reversal of reserve for outstanding claims
Ordinary Expenses
Insurance claims and other payments
Insurance claims
Annuity payments
Insurance benefits
Surrender payments
Refund to policyholders
Provision for policy reserves and others
Provision for reserve for outstanding claims
Provision for policy reserves
Interest portion of reserve on policyholders' dividends
Investment expenses
Interest expenses
Losses on derivatives, net
Operating expenses
Other ordinary expenses
Ordinary Profit
Extraordinary Losses
Losses on disposal of fixed assets
Impairment losses
Provision for reserve under the special laws
Provision for reserve for price fluctuations
Provision for reserve for investment losses
Provision for Reserve for Policyholders' Dividends
Income Before Income Taxes
Income Taxes—Current
Income Taxes—Deferred
Total Income Taxes
Net Income

For the three months
ended June 30, 2019

For the three months
ended June 30, 2020

AmountAmount368,841
301,413300,860
64,35743,501
1,127
7
1,238
18,481
3,070－
342,469
109,439
23,3203,318
26,63952,978950
168,995
444
168,550
0
16,712748
1,579
37,3909,931
26,372
851
24
1
606
606
219
102
25,417
8,816(1,783)
7,033
18,384

7471,321
270,477
269,281
194,637
47,743－－－
146,8936,206
455
457,728
112,607
29,862
3,516
30,43645,566956
262,966－
262,966
030,472449
21,98140,704
10,97813,593
738
26
33
677
677
－
100
12,754
4,771(1,186)
3,585
9,169

5. Reconciliation to Core Profit and Non-consolidated Ordinary Profit(Millions of yen)
For the three months ended For the three months ended
June 30, 2019
June 30, 2020
Core profit

A

Capital gains

29,814

37,13013,741

7,137

Income from money held in trust, net－－

Income from trading securities, net

5－Gains on sale of securities

1,238

－

Gains on derivatives, net－－

Foreign exchange gains, net－－

12,497

7,137

Other capital gains
Capital losses

14,93928,891

Losses on money held in trust, net－－

Losses on trading securities, net－－

Losses on sale of securities－－

Losses on valuation of securities－－

Losses on derivatives, net

1,579

21,981

Foreign exchange losses, net

13,334

6,680

25

229

Other capital losses
Net capital gains (losses)

B(1,197)(21,753)Core profit plus net capital gains (losses)

A+B

28,617

15,377－－

Gains from reinsurance－－

Reversal of contingency reserve－－

Reversal of specific reserve for possible loan losses－－

Others

－

－

2,244

1,784

－

－

2,207

1,760

Other one-time gains

Other one-time losses
Losses from reinsurance
Provision for contingency reserve
Provision for specific reserve for possible loan losses

12

4Provision for reserve for possible loan losses for specific foreign countries－－

Write-off of loans－－

Others25

19

C(2,244)(1,784)

A+B+C

26,372

13,593

Net other one-time gains (losses)
Ordinary profit

Note: As described in page 1, from the three months ended June 30, 2020, we have changed accounting method and the change has been retroactively applied
to the result for the three months ended June 30, 2019. As a result, foreign exchange losses, net increased by ¥2,295 million and ordinary profit
decreased by the same amount.

(Reference) The breakdown of Others(Millions of yen)
For the three months ended For the three months ended
June 30, 2019
June 30, 2020

Core profit
Income gains in income from money held in trust(11,368)(7,137)

1,127

－

1

－

(12,497)(7,137)

12,497

7,137

12,497

7,137

25

229

Impairment losses from investment partnership

25

229

Effect of change in the exchange rates related to foreign currency-denominated insurance contracts－－

Interest income and dividends in income from trading securities
Effect of change in the exchange rates related to foreign currency-denominated insurance contracts
Other capital gains
Effect of change in the exchange rates related to foreign currency-denominated insurance contracts
Other capital losses

Other one-time gains－－

Other one-time losses

25

19

25

19

Provision for additional policy reserve86. Solvency Margin Ratio(Millions of yen)

Category

As of March 31, 2020

Total solvency margin(A)

As of June 30, 2020

1,412,772

1,425,665

Common stock, etc.

390,186

397,592

Reserve for price fluctuations

52,76853,445

Contingency reserve

107,659

109,42000

Net unrealized gains (losses) on available-for-sale securities (before tax deductions) and net
deferred gains (losses) on hedging instruments (before tax deductions) x 90% (100% if losses)

154,773

151,678

Net unrealized gains (losses) on real estate x 85% (100% if losses)

65,51465,514

－

－

152

658

Deferred tax assets

101,924

104,805

Excess amount of policy reserves based on Zillmer method

554,097553,522－－

The portion of the excess amount of policy reserves based on Zillmer method andsubordinated debt that is not included in the margin(3,331)－

Deductible items(10,971)(10,971)(B)

114,101

117,498

Insurance risk

R1

24,49824,260Third-sector insurance risk

R8

8,459

8,425

Assumed interest rate risk

R236,46836,841Minimum guarantee risk

R723,81025,570Asset management risk

R3

46,04547,476

Business management risk

R4

2,785

2,851

2,476.3%

2,426.6%

General reserve for possible loan losses

Amount excluded from deferred tax assets
Unallocated portion of reserve for policyholders' dividends

Subordinated debt

( R1  R8 )  ( R 2  R3  R7 )  R4
2

Total risk

2

Solvency margin ratio
(A)/

ଵ
ൈ ሺBሻ
ଶ

ൈ100

Notes: 1. The above figures are calculated based on provisions in Articles 86 and 87 of the Ordinance for Enforcement of the Insurance Business Act of Japan and theMinistry of Finance Public Notice No. 50 (1996).
2. Minimum guarantee risk is calculated based on the standardized approach.

97. Status of Separate Account Assets(1) Balance of Separate Account Assets(Millions of yen)

Category

As of March 31, 2020

Individual variable life insurance and individual variable annuities

As of June 30, 2020

1,323,948

1,512,934－－

1,323,948

1,512,934

Group annuities
Total separate accountNote: Assets relating to individual variable life insurance and individual variable annuities are jointly invested at Sony Life.

(2) Policy Amount in Force
Individual variable life insurance(Number: Thousand, Amount: Millions of yen)

As of March 31, 2020

As of June 30, 2020

Category
NumberAmountNumberAmountVariable life insurance (whole life type)830

7,601,102

829

7,575,439

Variable life insurance (limited term type)185

1,183,138

190

1,222,612

Variable life insurance (term type)15

859,80816

908,242

1,032

9,644,050

1,035

9,706,293

Total
Note: Amounts include the rider portion of variable life insurance.

Individual variable annuities(Number: Thousand, Amount: Millions of yen)

As of March 31, 2020

As of June 30, 2020

Category
NumberIndividual variable annuities

Amount361

2,256,666

NumberAmount375

2,351,752

Note: The amount of individual variable annuities is equal to the sum of (a) the funds to be held at the time annuity payments are to commence for policies for which annuity
payments have not yet commenced and (b) the amount of policy reserves for policies for which payments have commenced.

10

8. Consolidated Summary(1) Key Performance Indicators(Millions of yen)

For the three months ended
June 30, 2020
Ordinary revenues

491,754

Ordinary profit

11,349Profit attributable to owners of the parent

6,837

Comprehensive income

4,027(Millions of yen, %)Category

As of March 31, 2020

Total assets
Solvency margin ratio

As of June 30, 2020

11,796,918

12,159,119

2,564.5%

2,478.8%(2) Scope of consolidation and application of the equity method(Companies)
Consolidated subsidiaries

2

Affiliates not accounted for by the equity method0Affiliates accounted for by the equity method011(3) Consolidated Balance Sheets

As ofMarch 31, 2020

As ofJune 30, 2020

AmountAmount224,211
14,96011,055,749
208,632
93,61932,2084,837
140,362
3,391
19,598(652)
11,796,918

179,526
16,013
11,444,701
220,30293,42931,227
4,661
144,264
3,489
22,159(656)
12,159,119

10,551,976
40,883
10,506,684
4,407
2,471
5,356
610,032
30,682
52,792
52,792
142
109
11,253,564

10,823,142
40,382
10,778,440
4,319
1,675
4,319
725,898
30,66753,47353,473450
109
11,639,737

70,0005,865
345,972
421,837

70,0005,865
324,810400,675

Net unrealized gains (losses) on available-for-salesecurities, net of taxes

124,700

121,799

Land revaluation, net of taxes
Remeasurements of defined benefit plans, net of taxes
Total accumulated other comprehensive income
Total Net Assets
Total Liabilities and Net Assets(2,439)(745)
121,516
543,354
11,796,918(2,439)(653)
118,706
519,381
12,159,119

Assets:Cash and deposits
Money held in trust
Securities
Loans
Tangible fixed assets
Intangible fixed assets
Due from reinsurers
Other assets
Net defined benefit asset
Deferred tax assets
Reserve for possible loan losses
Total Assets
Liabilities:
Policy reserves and others
Reserve for outstanding claims
Policy reserves
Reserve for policyholders' dividends
Due to agencies
Due to reinsurers
Other liabilities
Net defined benefit liability
Reserve under the special laws
Reserve for price fluctuations
Deferred tax liabilities
Deferred tax liabilities on land revaluation
Total Liabilities
Net Assets:
Common stock
Capital surplus
Retained earnings
Total shareholders' equity12(4) Consolidated Statement of Income

Ordinary Revenues
Income from insurance premiums
Investment income
Interest income and dividends
Income from money held in trust, net
Gains on trading securities, net
Gains on separate accounts, net
Other ordinary income
Reversal of reserve for outstanding claims
Ordinary Expenses
Insurance claims and other payments
Insurance claims
Annuity payments
Insurance benefits
Surrender payments
Provision for policy reserves and others
Provision for policy reserves
Interest portion of reserve for policyholders' dividends
Investment expenses
Interest expenses
Losses on derivatives, net
Operating expenses
Other ordinary expenses
Ordinary Profit
Extraordinary Losses
Losses on disposal of fixed assets
Impairment losses
Provision for reserve under the special laws
Provision for reserve for price fluctuations
Provision for Reserve for Policyholders' Dividends
Income Before Income Taxes
Income Taxes—Current
Income Taxes—Deferred
Total Income Taxes
Net Income
Profit Attributable to Owners of the Parent

13(Millions of yen)
For the three months
ended June 30, 2020
Amount491,754273,764
211,72147,744111
41
163,8236,268
501
480,404
117,362
29,8583,947
31,013
46,682271,755
271,755
038,592
470
30,41941,628
11,065
11,349
742
26
33
681
681
100
10,506
4,772(1,103)
3,669
6,837
6,837

(5) Consolidated Solvency Margin Ratio(Millions of yen)

Category

As of March 31, 2020

Total solvency margin(A)

As of June 30, 2020

1,427,464

1,439,087

Common stock, etc.

391,320

396,318

Reserve for price fluctuations

52,79253,473

Contingency reserve

110,842

112,621

Catastrophe reserve－－

General reserve for possible loan losses

00

Net unrealized gains (losses) on available-for-sale securities (before tax deductions) and net
deferred gains (losses) on hedging instruments (before tax deductions) x 90% (100% if losses)

155,232

153,125

Net unrealized gains (losses) on real estate x 85% (100% if losses)

65,51465,514

Total amount of unrecognized net actuarial gains (losses) and unrecognized past
service cost

(1,034)

(907)

－

－

152

658

Deferred tax assets

101,924

104,805

Excess amount of policy reserves based on Zillmer method

554,097553,522－－(3,331)

－

(45)

(45)

(B)

111,321116,110

Insurance risk

R1

24,56424,328

Ordinary insurance risk

R5

－

－

Major catastrophe risk

R6

－

－

Third-sector insurance risk

R8

8,459

8,425

Insurance risk of small-amount short-term insurance providers

R9

－

－

Assumed interest rate risk

R2

36,63737,010

Minimum guarantee risk

R7

24,06925,837

Asset management risk

R342,74245,600Business management risk

R4

2,729

2,824

2,564.5%

2,478.8%

Amount excluded from deferred tax assets
Unallocated portion of reserve for policyholders' dividends

Subordinated debt
The portion of the excess amount of policy reserves based on Zillmer method
and subordinated debt that is not included in the margin
Deductible items

Total risk

ሺ R12+R52+R8+R9)2+(R2+R3+R7)2+R4+R6

Solvency margin ratioଵ(A)/ ଶ ൈ ሺBሻ ൈ100

Notes: 1. The above figures are calculated based on provisions in Articles 86-2 and 88 of the Ordinance for Enforcement of the Insurance Business Act of Japanand Public Notice of Financial Services Agency No. 23 (2011).
2. Minimum guarantee risk is calculated based on the standardized approach.

14