February 14, 2013
Sony Financial Holdings Inc.

Summary Information on Sony Assurance’s Financial Results
for the Nine Months Ended December 31, 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 December 31, 2012

Assets:Cash and deposits

5,161

5,392

Securities

84,474

89,415

Tangible fixed assets

434511Intangible fixed assets6,806

7,998

Other assets

16,743

15,554

Deferred tax assets

4,993

4,507

118,612

123,379

91,564

98,886

Reserve for outstanding losses

24,192

27,786

Underwriting reserves

67,371

71,099

7,512

4,400

316

141

7,196

4,259

Reserve for employees’ retirement benefits

717

815

Reserve for directors’ retirement benefits

40

49

Reserve for employees’ bonuses

707

395

Reserve for price fluctuations and others

61

75

61

75

100,603

104,623

Common stock

20,00020,000Capital surplus

20,00020,000Retained earnings (deficits)(21,946)(21,347)

Total shareholders’ equity

18,05318,652Net unrealized gains (losses) onother securities, net of taxes

(44)

103

Total valuation and translation
adjustments

(44)

103

Total Net Assets

18,00918,756

Total Liabilities and Net Assets

118,612

123,379

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 nine months ended
December 31, 2011

For the nine months ended
December 31, 2012

60,144

63,82359,44963,011

59,426

62,987

23

24

650

743

(Interest income and dividends)

647

743

(Gains on sale of securities)

2324(Transfer to interest and dividends on deposits of premiums)

(23)

(24)

43

68

58,44962,769Ordinary Revenues
Underwriting income(Net premiums written)(Interest and dividends on deposits of premiums)
Investment income

Other ordinary income
Ordinary Expenses
Underwriting expenses

44,18947,652(Net losses paid)

32,95135,041(Loss adjustment expenses)

3,797

4,241

(Net commissions and brokerage fees)

1,045

1,046

(Provision for reserve for outstanding losses)

2,325

3,594

(Provision for underwriting reserves)

4,068

3,727

2

50

3

14,207

15,096

Investment expenses(Losses on sale of securities)
Operating, general and administrative expenses
Other ordinary expenses
Ordinary Profit

51

15

1,694

1,053

Extraordinary Gains-

Extraordinary Losses

-

1214

Losses on sale or disposal of fixed assets

00

Provision for reserve for price fluctuations and others

1214

1214

1,681

1,038

514

19

Income Taxes –deferred

638

420

Total Income Taxes

1,152439529599

Provision for reserve for price fluctuations
Income Before Income Taxes
Income Taxes –current

Net Income33. Financial Summary (Year-on-Year Comparison)(Millions of yen)
For the nine months
ended December 31,
2011

For the nine months
ended December 31,
2012

Change(Amount)

Change(%)

58,812

62,1853,372

5.7

58,812

62,1853,372

5.7

59,44963,011

3,561

6.0

59,426

62,9873,561

6.0

Underwriting expenses

44,18947,652

3,462

7.8(Net losses paid)

32,95135,041

2,090

6.3(Loss adjustment expenses)

3,7974,241

443

11.7

(Net commissions and brokerage fees)

1,045

1,046

00.1

650

743

92

14.2

(Interest income and dividends)

647

743

95

14.8

(Gains on sale of securities)

23

24

1

5.0

2

53

157.0

0

3

3

3,215.8

Operating, general and administrative expenses

14,207

15,096889

6.3(Operating, general and administrative
expenses related to underwriting)

14,12715,020

893

6.3

(7)

52

60

－

1,694

1,053(640)(37.8)

1,112

337(775)(69.7)

Extraordinary gains－－－－

Extraordinary losses

12142

18.4

Extraordinary gains (losses), net

(12)

(14)

(2)

－

1,681

1,038(642)(38.2)

Income taxes–current

514

19(495)(96.3)

Income taxes–deferred638

420(218)(34.2)

1,152

439(713)(61.9)

529

599

70

13.3

Net loss ratio

61.8%

62.4%

Net expense ratio

25.5%

25.5%

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

Ordinary Income (expenses)

Investment income

Investment expenses(Losses on sale of securities)

Other ordinary income (expenses), net
Ordinary profit(Underwriting profit)
Extraordinarygains (losses)

Income before income taxes

Total income taxes
Net incomeRatios

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 nine months ended
December 31, 2011
Amount

For the nine months ended
December 31, 2012

Composition YoY Change%Fire

118

AmountComposition

YoY Change%%%0.2

(1.5)

171

0.3

45.3

－－－－－－

Personal accident

5,517

9.4

3.3

5,883

9.5

6.6

Voluntary automobile

53,17790.4

8.2

56,12990.3

5.6－－－－－－

58,812100.0

7.7

62,185100.0

5.7

MarineCompulsory automobile liability

Total
Net premiums written(Millions of yen)
For the nine months ended
December 31, 2011
Amount

For the nine months ended
December 31, 2012

Composition YoY Change%

AmountComposition

YoY Change%%

%

Fire

68

0.1

1,119.2

80

0.1

16.4

Marine50

0.1

2,041.2

105

0.2

108.5

Personal accident

5,681

9.6

3.2

6,073

9.6

6.9

Voluntary automobile

52,97889.2

8.3

55,922

88.8

5.6

647

1.1

19.1

805

1.3

24.4

59,426100.0

8.1

62,987100.0

6.0Compulsory automobile liability

Total
Net losses paid

(Millions of yen)
For the nine months ended
December 31, 2011
Amount

For the nine months ended
December 31, 2012

YoY Change Net loss ratio%

AmountYoY Change

Net loss ratio

%

%%

Fire

40

35,059.1

60.5

0(98.0)

21.5

Marine

104

856.3

206.7

160

53.8

152.5

Personal accident

1,352

14.7

26.5

1,467

8.5

27.2

Voluntary automobile

30,806

11.5

65.0

32,662

6.0

65.6

647

28.8

100.0

750

15.9

93.1

32,951

12.4

61.8

35,041

6.3

62.4

Compulsory automobile liability

Total55. Non-consolidated Solvency Margin Ratio(Millions of yen)
As of March 31, 2012
(A) Total non-consolidated solvency margin
Capital or treasury
Reserve for price fluctuations

As of December 31, 2012

27,511

27,15318,05318,652

61

75

Contingency reserve

54

61

Catastrophe reserve

9,406

8,229

--

(63)

135

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

10,342

Ordinary insurance risk (R 1)

8,929

9,374

(B) Total risk

2

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

Third-sector insurance risk (R2)--

Assumed interest rate risk (R 3)58

65

Asset management risk (R4)

309

386

Business management risk (R 5)

297

314

Major catastrophe risk (R 6)

627

642

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

557.8 ％

525.0 ％

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 ofDecember 31, 2012 is calculated according to simplified methods in major catastrophe risk. The figure is assumed to be equivalent to theamount as of September 30, 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 the table 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).
“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 risks)(Ordinary insurance risk)(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.

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