May 20, 2010
Sony Financial Holdings Inc.

Summary Information on Sony Life’s Financial Results
for the Year Ended March 31, 2010

<Contents>
1. Key Performance Results

P.2

2. Policy amount in force by insurance function as of March 31, 2010

P.4

3. Example of Policyholder Dividend, based on Figures for the Year Ended March 31, 2010 P.5
4. Investment in General Account Assets for the Fiscal Year Ended March 31, 2010

P.6

5. Non-consolidated Balance Sheets

P.13

6. Non-consolidated Statements of Income

P.14

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

P.15

8. Loans of Borrower Category

P.16

9. Risk-Monitored Loans

P.16

10. Solvency Margin Ratio

P.17

11. Status of Separate Account Assets

P.18

12. Consolidated Summary

P.20

13. (Reference) Results for the Three Months Ended March 31, 2010

P.23

14. (Reference) Holdings of Securitized Papers and Other Sub-prime Related Investments P.24

1

1. Key Performance Results(1) Policy Amount in Force and New Policy Amount
Policy Amount in Force(Number: Thousand, Amount: 100 millions of yen)

As of March 31, 2009
Category

Change fromMarch 31,2008 (%)

NumberAs of March 31, 2010
Change fromMarch 31,2008 (%)

Amount

4,657

106.0

Individual annuities

51

112.3

Group life insurance--Group annuities

-

-

734

Individual life insurance

322,291

Change fromMarch 31,2009 (%)

NumberChange fromMarch 31,2009 (%)

Amount

103.2

4,954

106.4

331,641

102.9

2,885

110.9

55

108.8

3,066

106.3

10,194

108.8

-

-

11,274

110.6

100.3

-

-

723

98.4

Notes: 1. Policy amounts for individual annuities are equal to the sum of annuity assets at the time annuity payments commence and policy reserves
after annuity payments commence.
2. The policy amount in force for group annuities is equal to the amount of outstanding policy reserve.
(Number: Thousand, Amount: 100 millions of yen)

New Policy AmountFor the Year Ended March 31, 2009
Category

NumberYoY Change(%)

Amount

For the Year Ended March 31, 2010

YoY Change
New Policies(%)

NumberIncrease from
Conversion

YoY change(%)

AmountYoY Change
New Policies(%)

Increase from
Conversion

526

102.4

38,346102.4

38,346

-

575

109.3

40,175104.8

40,175－

Individual annuities

7

70.3

391

67.5

391

-

6

88.1

317

81.1

317

－

Group life insurance

-

-

151

255.2

151

-

-

72

47.8

72

Group annuities

-

-

-

-

-

-

-

-

-

-

Individual life insurance

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

(2) Annualized Premiums(Millions of yen)

Policies in force

Category

Individual life insurance
Individual annuities

Total
Of which, medical protection, living
benefit protection, etc

As of March 31, 2009

Change fromMarch 31,2008 (%)

As of March 31, 2010

Change fromMarch 31,2009 (%)

538,252103.3

563,002

104.6

9,646

109.4

10,329107.1

547,898

103.4

573,331104.6

126,662103.1

133,023

105.0(Millions of yen)

New policies

Category

For the Year Ended
March 31, 2009

YoY Change(%)

For the Year Ended
March 31, 2010

YoY Change(%)

Individual life insurance

60,10898.1

67,332112.0

Individual annuities

1,585

71.2

1,447

91.3

61,693

97.2

68,780111.5

13,443

100.6

16,264

121.0

Total
Of which, medical protection, living
benefit protection, etc

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-payment policies, premiums are divided by the number of coverage years.)
2. "Medical protection and living benefit protection products, etc." indicates the portion of annualized premiums for medical protection benefits (hospitalization benefit,
surgical procedure benefit, etc.) and products with living benefit protection (benefits for specific illness, nursing care benefits, etc.)2(3) Major P/L Items
Category(Millions of yen)

For the Year Ended
March 31, 2009

YoY Change(%)

For the Year Ended
March 31, 2010

YoY Change(%)

Income from insurance premiums

662,011102.1

700,101

105.8

Investment income

98,781

112.9

175,397

177.6

Insurance claims and other payments

274,778114.0

274,278

99.8

Investment expenses

133,777

191.4

20,584

15.4

Ordinary profit

32,40982.5

80,099247.1(Millions of yen)

(4) Total assets
Category
Total assets

As of March 31, 2008
3,810,929

3

YoY Change
(%)

104.1

As of March 31, 2009
4,286,540

YoY Change
(%)

112.5

2. Policy amount in force by insurance function as of March 31, 2010
(Number: Thousand, Amount: 100 millions of yen)
Individual life insurance

Individual annuities

Group life insurance

NumberAmountNumberNumberAmountNumberAmountStandard death

4,163

319,110

-

-

2,670

11,273

6,834

330,384

Accidental death847

79,570

-

-

31

30

879

330,384

Death protection
with otherconditions

280

8,347

-

-

-

-

280

8,347

791

12,530

55

3,066

0

0

846

15,597

Accidental
hospitalization

2,301

168

-

-

72

0

2,374

168

Sickness
hospitalization

2,301

168

-

-

-

-

2,301

168

Hospitalization
with otherconditions

856

74

-

-

-

-

856

74

Disability protection

525

-

-

-

72

-

598

-

Surgery protection

1,598

-

-

-

-

-

1,598

-

Total

Category

Death protection

Living protection
Hospitalization protection

Asset-formation insurance,
asset-formation annuities

Group annuities
Category

Living protection

Category

NumberAmount373

723

NumberTotal

Amount--Medical protection
insurance
NumberHospitalization
protection

AmountNumberAmount373

723

Disability insurance
Category

Amount-Number-Disability protection

Amount-Notes: 1. The number of policies for group life insurance products, group annuity products and medical protection
insurance (group type) products indicates the total number of insured parties.
2. Of the policy amount in the pure endowment insurance column, policy amount in force for individual annuities
and group life insurance (annual policies) 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 reserve for policies for which payments have commenced.
For group annuities, the policy amount indicates the amount of policy reserves.
3. The policy amount in the hospitalization insurance column indicates an amount equivalent to the number of daysof hospitalization benefits.
4. For medical protection insurance, the policy amount in the hospitalization insurance column corresponds to thefigure for hospitalization due to sickness.

4-3. Example of Policyholder Dividend, based on Figures for the Year Ended March 31, 2010
(1) Standard dividend yields for individual annuity with policyholder dividend every five years
For the Year Ended
March 31, 2009
Policies with assumed interest rates of 2.00% or less
Policies with assumed interest rates of more than
2.00% and 2.50% or less
Policies with assumed interest rates of more than
2.50%

For year ended
March 31, 2010

0.20％

2.80％

0.10％

2.70％

0.00％

2.60％

(2) Below is an example of semi-participating endowment insurance with policyholder dividend every
five years, using figures for the fiscal year ended March 31, 2010.
Example: Semi-participating endowment insurance with policyholder dividend every five years
Entered at age 30, 10-year maturity, male, lump-sum payment, policy amount of ¥1 million

Contract Date

Assumed interest rate

2-Aug-09
2-Aug-08
2-Aug-07
2-Aug-06
2-Aug-05
2-Aug-04
2-Aug-03
2-Aug-02
2-Aug-01
2-Aug-00

1.50％
1.50％
1.50％
1.00％
1.00％
1.00％
1.50％
1.50％
1.50％
1.90％

Years elapsed

Ongoing policy(yen)

1 year
2 years
3 years
4 years
5 years
6 years
7 years
8 years
9 years
10 years

39,726-

Policies ending at
maturity or deathof policyholder(yen)11,541
106
7,370
32,111
39,726
17,406115
7,874
13,4040Note: 1. The policies ending at maturity or death of policyholder column shows the amount receivable at maturity or upon
death. The number of years elapsed is the number through August 2, 2010.
2. The above-stated dividend amount is the sum of the pro-rated dividend amount(policy reserve x dividend participation ratio) and interest through August 2, 2010
(excluding dividends already paid).
Dividend participation ratio = standard dividend yield - assumed interest rate(3) Dividend participation ratio on group annuities
The dividend participation ratio on group annuities is 1.05%, using figures for the year ended March 31, 2010.
Note: Dividend participation is calculated as follows.
Dividend amount = policy reserve x dividend participation ratio
Dividend participation ratio = standard dividend yield - assumed interest rate
Note that the standard dividend yield was 1.80% for the year ended March 31, 2009.

(4) For group annuities and other products, a reserve for policyholders’ dividends is accumulated inaccordance with each product’s characteristics

5

4. Investment in General Account Assets for the Year Ended March 31, 2010(1) Investment of Assets for the Year Ended March 31, 2010
1. Investment Environment
During the fiscal year ended March 31, 2010, the Japanese economy began to rebound. Real GDP grew at a rate of 6.0% during theApril–June quarter, negative 0.6% in the July–September quarter and 3.8% in the October–December quarter. Real GDP growth is also
expected to have been positive during the January–March quarter. Recovery in China and other segments of the world economy
encouraged export-centered growth in the Japanese economy.
Following a bond market downturn (yields increased) through June 2009, interest rates fluctuated within the long-term range. An
increased supply of Japanese government bonds (JGBs), coupled with concerns about worsening government finances, caused long-term
interest rates to rise, temporarily exceeding 1.5% at one point. The trend then reversed, with long-term interest rates plunging to around
1.2% as Dubai government owned firms experienced cashflow difficulties and concerns about Greece’s national finances mounted.
Lower House elections swept the Democratic Party of Japan (DPJ) to power in August, and the Hatoyama Cabinet was established. DPJ
policies, which called for greater government spending in many areas, had a negative effect on the bond markets, creating an environmentthat hindered interest rate increases. On March 31, 2010, 10-year JGB yields were 1.400%, 0.047 percentage point higher than one year
earlier.
Stock market conditions improved significantly, reflecting a recovery in corporate performance. In its fluctuations throughout the year, theNikkei stock average never fell below ¥8,109.53, the ending average on March 31, 2009, and ongoing buying pushed the average above¥11,000 in March 2010. Although prices faltered in the face of concerns about the situations in Dubai and Greece, firm overseas stock
market results buoyed Japanese market prices. On March 31, 2010, the Nikkei closed at ¥11,089.94, up ¥2,980.41 from one year earlier.
In foreign exchange markets, the yen continued the previous fiscal year’s trend, appreciating against the U.S. dollar. After falling to¥101.44 on April 1, 2009, the yen continued to strengthen, appreciating sharply to ¥84.83 in November as a result of the Dubai crisis.
After that point, U.S. economic recovery and a rise in long-term interest rates caused the yen to depreciate against the dollar. As of March
31, 2010, the yen was trading at ¥93.04 to the U.S. dollar, up ¥5.19 from one year earlier.
2. Investment Policy
Our basic investment policy on general account assets is to secure stable investment income and targets asset soundness. Our investment
focuses on achieving a balance between profitability and market risk. In our bonds investments, which center on JGBs, we are working toextend the duration of our portfolio by switching over our balance of bonds that have a short time remaining to maturity for bonds with alonger remaining period.
3. Results of Investment
As of March 31, 2010, general account assets totaled ¥3,912.9 billion, up 10.7% or ¥377.1 billion from March 31, 2009. Within thegeneral account, Japanese government and corporate bond investment totaled ¥3,032.9 billion (accounting for 77.5% of total generalaccount assets), Japanese stocks ¥72.5 billion (1.9%), Foreign government and corporate bonds ¥49.9 billion (1.3%), Monetary trusts¥288.7 billion (7.4%), Policyholder loans ¥127.5 billion (3.3%), Real estate ¥79.9 billion (2.0%) and Cash and call loans ¥116.4 billion(3.0%).

6

(2) Composition of General Account Assets
Category
Cash and deposits, call loans

As of March 31, 2009
Amount％58,051

1.6(Millions of yen)
As of March 31, 2010
Amount％116,442
3.0

Securities repurchased under resale agreements

-

-

-

-

Pledged money for bond borrowing transaction

-

-

-

-

607,625
2,559,237
2,384,467
50,974
115,279
93,70921,5698,516
120,462
81,75435,43973,407(208)
3,535,769
34,299

17.2
72.4
67.4
1.4
3.3
2.7
0.6
0.2
3.4
2.3
1.0
2.1
(0.0)
100.0
1.0

288,772
3,188,812
3,032,933
72,52575,28549,91525,3708,067
127,599
79,91527,686
83,918(212)
3,912,935
21,724

7.4
81.5
77.5
1.9
1.9
1.3
0.6
0.2
3.3
2.0
0.7
2.1
(0.0)
100.0
0.6

Monetary claims purchased
Securities under proprietary accounts
Monetary trusts
Securities
Domestic bonds
Domestic 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(3) Changes in General Account Assets by Categories(Millions of yen)
Category

For the Year Ended March 31, 2009

Cash and deposits, call loans

For the Year Ended March 31, 2010

(24,055)

58,390

Securities repurchased under resale agreements--

Pledged money for bond borrowing transaction--(286,326)
472,680
661,663(121,936)(63,516)(60,485)(3,030)(3,530)11,773(1,113)35,439(10,491)(134)
197,772(72,062)(318,853)
629,574
648,465
21,551(39,993)(43,794)
3,800
(448)
7,137
(1,838)(7,753)
10,511(3)
377,165(12,574)

Monetary claims purchased
Securities under proprietary accounts
Monetary trusts
Securities
Domestic bonds
Domestic bonds
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

7(4) Investment Income(Millions of yen)

For the Year Ended
March 31, 2009

Category
Interests and dividends
Interest income from deposit
Interest income and dividends from securities
Interest income from loans
Income from real estate for rent
Other income from interests and dividends
Gains on securities under proprietary accounts
Income from monetary trusts, net
Income from trading securities, net
Gains on sale of securities
Gains on sale of domestic bonds
Gains on sale of domestic stocks
Gains on sale of foreign securities
Other
Gains on redemption of securities
Gains from derivatives, net
Foreign exchange gains, net
Other investment income
Total

For the Year Ended
March 31, 2010

55,803
039,033
4,732
11,632404

70,668054,662
4,991
10,942
71-

1,084
32,11518,321
12,4091,384

22,887
15,107
4,126
10,614
367

807
8,937

3,939
-

32
98,781

37
112,639(5) Investment Expenses(Millions of yen)

For the Year Ended
March 31, 2009

Category
Interest expense
Losses on securities under proprietary accounts
Losses from monetary trusts, net
Losses on trading securities, net
Losses on sale of securities
Losses on sale of domestic bonds
Losses on sale of domestic stocks
Losses on sale of foreign securities
Other
Devaluation losses on securities
Devaluation losses on domestic bonds
Devaluation losses on domestic stocks
Devaluation losses on foreign securities
Other
Losses on redemption of securities
Losses from derivatives, net
Foreign exchange losses
Provision for reserve for possible loan losses
Write-off loans
Depreciation of real estate for rent
Other investment expense
Total

For the Year Ended
March 31, 2010
42

29
-

-

856
16,157316
15,725114

10,073
7,904
2,168
-

-

31,89930,708
1,191
262

361
-

2,614
134

833
3

2,932
6,664
61,564

8

2,763
6,518
20,584

(6) Investment Efficiency(i) Investment yield by type of asset(%)

Category
Cash and deposits, call loans

For the Year Ended
March 31, 2009

For the Year Ended
March 31, 2010

0.33

0.08

Securities repurchased underresale agreements
Pledged money for bondborrowing transaction

-

-

-

-

Monetary claims purchased--

Securities under proprietaryaccounts--

Monetary trusts(0.11)

4.76

Securities

0.89

2.16

Domestic bonds

1.70

2.12

Domestic stocks(14.69)13.13

Foreign securities

1.37(2.21)

Loans

4.14

4.05

Real estate

5.38

4.73

Total

1.11

2.54

Overseas investment

1.38(2.22)

Notes: 1. Denominator of investment yield calculation is a daily averaged carrying value, while the numerator isinvestment income minus investment expenses.
2. Valuation gains for Article 112 of Insurance Law is not accounted for.
3. Foreign investment is a total of foreign currency denominated assets and yen denominated assets.

(ii) Valuation Gains/Losses on Trading-Purpose Securities(Millions of yen)

As of March 31, 2009
Category
Trading-purpose securities

Balance sheet
amountAs of March 31, 2010

Net valuation gains/losses
recorded in income(4,318)22,871

Note: The chart above includes trading-purpose securities in "monetary trusts" etc.

9Balance sheet
amountNet valuation gains/losses
recorded in income

-

5,711

(iii) Fair Value Information on Securities(Millions of yen)a. Fair value information on securities with market value (except trading-purpose securities)

As of March 31, 2009
Category

Carrying value
before mark-tomarket

Fair value

1,399,011

1,425,713

Held-to-maturity securities

As of March 31, 2010
Carrying value

Net unrealized gains/losses

Unrealized Unrealized before mark-tomarket
lossesgains

26,702

28,991

2,288

2,275,629

Net unrealized gains/losses
Fair value

Unrealized Unrealized
gains
losses2,255,176(20,453)

10,572

31,026

Policy reserve matching bonds

-

-

-

-

-

-

-

-

-

-

Stocks of subsidiaries and affiliatedcompanies

-

-

-

-

-

-

-

-

-

-

Available-for-sale securities

1,675,529

1,699,732

24,20256,28632,083

1,126,543

1,166,944

40,401

42,252

1,850

Domestic bonds

1,546,918

1,573,911

26,99351,624

24,6301,061,593

1,090,012

28,41829,677

1,259

Domestic stocks

56,95058,371

1,421

4,510

3,088

51,72362,183

10,45910,956497

Foreign securities

64,21060,569(3,641)

150

3,791

8,084

8,010

(74)

19

93

64,21060,569(3,641)

150

3,791

8,084

8,010

(74)

19

93

Bonds

-

Stocks, etc.
Other securities

7,450

6,879

(570)

-

-

1

572

5,140

6,738

1,597

-

-

1,598

0

Money claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

Total
Domestic bonds-

3,074,540

3,125,446

50,90585,277

34,372

3,402,172

3,422,120

19,947

52,82432,8772,904,503

2,958,363

53,86080,61526,755

3,295,318

3,295,356

37

32,32332,285

Domestic stocks

56,95058,371

1,421

4,510

3,088

51,72362,183

10,45910,956497

Foreign securities

105,636

101,831(3,805)

150

3,955

49,98957,843

7,853

7,947

93

105,636

101,831(3,805)

150

3,955

49,98957,843

7,853

7,947

Bonds
Stocks, etc.

-

Other securities

7,450

6,879

(570)

-

-

1

572

5,140

6,738

1,597

93
-

1,598

0

Monetary claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

-

Notes: 1. The above table includes assets such as certificates of deposits which are permitted to be treated as equivalent to securities defined in the Financial Instruments and Exchange Law of Japan.
2. Carrying value before mark-to-market and net unrealized gains/losses on monetary trusts, including items other than trading securities, amounted to ¥288,289 million and ¥2,514 million.
3. Carrying value before mark-to-market represents the amount after deductions for depreciable costs and impairment losses, before mark-to-market.

b. Carrying value of the securities without market value

Category(Millions of yen)

As of March 31, 2009

As of March 31, 2010

Held-to-maturity securities--

Unlisted foreign bonds--

Others--

Policy reserve matching bonds--

Stocks of subsidiaries and affiliated companies

6,047

15,847Available-for-sale securities

24,721

24,883

Unlisted domestic stocks

4

42

Unlisted foreign stocks

739

885

Unlisted foreign bonds
Others
Total

10

-

-

23,977

23,95530,76940,731

(Millions of yen)c. Fair Value Information consisting of those stated in the previous table-a and foreign exchange and other gains (losses) for table-b.

As of March 31, 2009
Category

Held-to-maturity securities

Stocks of subsidiaries and affiliatedcompanies
Available-for-sale securities

Net unrealized gains/losses

Carrying value
before mark-tomarket

Fair value

1,399,011

1,425,713

Policy reserve matching bonds

As of March 31, 2010-

Carrying value
Unrealized Unrealized before markto-market
gains
losses26,702
-

6,047

6,047

28,991

2,288

2,275,629

-

-

-

-

-

-

Net unrealized gains/losses
Fair value

Unrealized Unrealized
gains
losses2,255,176-(20,453)-

15,847

15,847

10,572

31,026

-

-

-

-

-

-

1,700,251

1,719,894

19,64356,761

37,117

1,151,426

1,188,138

36,711

42,946

6,234

Domestic bonds

1,546,918

1,573,911

26,99351,624

24,6301,061,593

1,090,012

28,41829,677

1,259

Domestic stocks

56,95458,376

1,421

4,510

3,088

51,76662,225

10,45910,956497

Foreign securities

64,95061,275(3,675)

150

3,825

8,970

8,809

(160)

19

180

64,21060,569(3,641)

150

3,791

8,084

8,010

(74)

19

Stocks, etc.

739

705

(33)

33

885

798

(86)

Other securities

31,427

Bonds

26,331(5,095)

476

5,572

29,09527,090(2,005)

93
-

2,292

86
4,298

Money claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

Total

3,105,310

3,151,656

46,34685,75239,4063,442,904

3,459,162

Domestic bonds

2,904,503

2,958,363

53,86080,61526,755

3,295,318

Domestic stocks

59,954

61,376

1,421

4,510

3,088

62,066

Foreign securities

109,424

105,585(3,838)

150

3,988

105,636

101,831(3,805)

150

3,955

Stocks, etc.

3,787

3,753

(33)

Other securities

31,427

26,331(5,095)

Bonds

476

-

16,25853,51937,261

3,295,356

37

32,32332,28572,525

10,45910,956497

56,42264,189

7,766

7,947

180

49,98957,843

7,853

7,947

33

6,433

6,346

(86)

5,572

29,09527,090(2,005)

93
-

2,292

86
4,298

Monetary claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

-

11

(iv) Fair Value Information on Monetary Trusts(Millions of yen)

As of March 31, 2010

As of March 31, 2009
Category

Monetary trusts

Balancesheet
amountFair value

607,625

607,625

Unrealized Unrealized
gains
lossesBalancesheet
amountFair value-

288,772

288,772

Net unrealized gains/losses--

Net unrealized gains/losses
Unrealized Unrealized
gains
losses---Note: The table above includes ¥50 million of jointly invested monetary trusts.

Monetary Trusts for Investment(Millions of yen)

As of March 31, 2009
Category

Balance sheet amount

Monetary trusts for investment

As of March 31, 2010

Net valuation
gains (losses)

32,020

Balance sheet amount(4,413)

Net valuation
gains (losses)

681

5,711

Monetary Trusts for Held-to-maturity, Policy Reserve Matching Securities and Others(Millions of yen)

As of March 31, 2009

As of March 31, 2010
Carrying
value
beforemark-tomarket

Fair value

－

－

－

－

－

－

－

－

－

－

－

－

－

17,4789,172

285,525

288,039

2,514

2,968

453

Net unrealized gains (losses)

Carrying
value before
mark-tomarket

Fair value

Monetary trusts for held-to-maturity

－

－

－

－

Monetary trusts for policy reserve matching

－

－

－

567,248575,554

8,306

Category

Other monetary trusts

Unrealized Unrealized
gains
losses12

Net unrealized gains (losses)
Unrealized Unrealized
gains
losses5. Non-consolidated Balance Sheets(Millions of yen)

Assets:Cash and deposits
Cash
Deposits
Call loans
Monetary trusts
Securities(Japanese government bonds)(Municipal bonds)(Japanese corporate bonds)(Japanese stocks)(Foreign securities)(Other securities)
Loans
Policy loans
Tangible fixed assets
Land
Buildings
Leased assets
Construction in progress
Other tangible fixed assets
Intangible fixed assets
SoftwareLeased assets
Other intangible assets
Due from agencies
Due from reinsurers
Other assets
Accounts receivable
Prepaid expenses
Accrued income
Deposits
Initial margins of future markets
Suspense payments
OthersDeferred tax assets
Reserve for possible loan losses

As ofMarch 31, 2009

As ofMarch 31, 2010

AmountAmount25,17415
25,15845,800607,625
2,819,638
2,196,830
29,190270,253
70,620189,426
63,317
120,462
120,462
82,79333,07647,498
337
1,179
701
12,187
12,1360
49
1
104
61,911
29,096992
11,252
3,969
13,583
1,336
1,679

45,707
13
45,69391,800288,772
3,539,114
3,023,972
28,43399,351103,098
186,043
98,214
127,599
127,599
80,92333,076
46,839272－
735
13,862
13,8140
47－
120
71,16541,5801,288
22,399
3,875
－
322
1,699

35,43927,686

(208)

As of
As of
March 31, 2009 March 31, 2010

AmountAmountLiabilities:
Policy reserves and others
Reserve for outstanding claims
Policy reserve
Reserve for policyholders' dividends
Due to agencies
Due to reinsurers
Other liabilities
Income taxes payable
Accounts payable
Accrued expenses
Unearned revenue
Deposits received
Guarantee deposits received
Lease obligations
Suspense receipt
Reserve for employees' retirement benefits
Reserve for directors' retirement benefits
Reserve for price fluctuations
Reserve for price fluctuations
Deferred tax liabilities on land revaluation

3,614,027
19,111
3,592,376
2,539
1,216
880
36,891
9,530
6,032
11,883
883
360
6,252
388
1,560
12,727
95
3,653
3,653
706

4,012,112
21,424
3,985,610
5,076
1,445
716
55,501
16,943
16,772
12,088
949
372
5,627
325
2,420
14,989
118
9,637
9,637
706

Total Liabilities

3,670,198

4,095,228

70,0005,865
5,865
62,325
8,478
53,84753,847138,190

70,0005,865
5,865
101,464
9,878
91,58591,585
177,329

4,015

15,458(1,475)(1,475)2,539

13,982

140,730
3,810,929

191,3124,286,540

Net Assets:
Common stock
Capital surplus
Capital reserve
Retained earnings
Earned reserve
Other retained earnings
Unappropriated retained earnings
Total stockholder's equity
Net unrealized gains on other securities,
net of taxes(212) Land revaluation, net of taxes
Total valuation and translation adjustments

Total Assets

3,810,929

4,286,540

13

Total Net Assets
Total Liabilities and Net Assets

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

For the Year Ended
March 31, 2009

Ordinary profit/loss

Ordinary revenues
Income from insurance premiums
Insurance premiums
Ceded reinsurance commissions
Investment income
Interest income and dividends
Interest income from deposits
Interest income and dividends from securities
Interest income from loans
Rent revenue from real estate
Other interest income and dividends
Income from monetary trusts, net
Income from trading securities, net
Gains on sale of securities
Gains on redemption of securities
Gains on derivatives, net
Foreign exchange gains, net
Other investment income
Other ordinary income
Payments for deferred insurance
Proceeds from deferred insurance
Other ordinary income
Ordinary expenses
Insurance claims and other payments
Insurance claims
Annuity payments
Insurance benefits
Surrender payments
Other payments
Reinsurance premiums
Provision for policy reserves and others
Provision for reserves for outstanding claims
Provision for policy reserves
Interest on policyholders' dividend reserve
Investment expenses
Interest expenses
Losses on monetary trusts, net
Losses on sale of securities
Devaluation losses on securities
Losses one redemption of securities
Foreign exchange losses, net
Provision for reserve for possible loan losses
Depreciation of real estate for rent and others
Other investment expenses
Losses on separate accounts, net
Operating expenses
Other ordinary expenses
Deferred annuity payments
Taxes
Depreciation
Provision for reserve for employees' retirement benefits
Provision for reserve for directors' retirement benefits
OthersOrdinary profit
Extraordinary gains
Reversal of reserve for price fluctuations
Reversal of reserve for price fluctuations
Extraordinary losses
Losses on sale or disposal of fixed assets
Impairment losses
Provision for reserve for price fluctuations
Provision for reserve for price fluctuations
Other extraordinary losses
Provision (reversal) for reserve for policyholders' dividends
Income before income taxes
Income taxes -Current
Income taxes -Deferred
Income taxes -Total
Net income
Extraordinary gains/losses

14765,910662,011
660,642
1,368
98,78155,803
039,033
4,732
11,632404－
1,084
32,115
807
8,937
32
－
5,117
1,779
2,351
987
733,500
274,778
62,0907,111
32,898168,135
2,172
2,370
219,0311,706
217,285
39
133,77742856
16,15731,899
262
2,614
134
2,932
6,664
72,212
93,928
11,983
1,898
6,226
1,836
1,995
24
2
32,40920,446
20,446
20,446
97
60
20
－
－
16
(429)
53,18814,087
5,317
19,40433,783For the Year Ended
March 31, 2010
881,798
700,101
698,168
1,932
175,397
70,668054,662
4,991
10,942
71
22,887－
15,1073,939－
37
62,757
6,299
1,449
3,591
1,258
801,698
274,278
64,855
7,742
34,670162,6941,950
2,364
395,5512,312
393,234
4
20,58429－
10,073
－
361
833
3
2,763
6,518
－
96,86014,424
2,611
6,470
2,334
2,982
22
2
80,099
－
－
－
6,107
116
5
5,984
5,984
－
3,516
70,47522,688
1,649
24,337
46,138

7. Reconciliation to Core Profit and Non-Consolidated Ordinary Profit(Millions of yen)
For the Year Ended
March 31, 2009
Core profitＡ

38,00564,51742,137－
1,084
32,115
8,937－－
63,914
12,842－
16,15731,899－2,614
399

29,947
14,839－15,107－－－
11,355－－
10,073
－
－
833
449

Ｂ

(21,776)

18,591

Ａ＋Ｂ

16,228

83,10816,315－
16,315
－
134
－
－
134
－
－
－

－
－
－
－
3,009
－
3,005
3
－
－
－

Ｃ

16,180(3,009)Ａ＋Ｂ＋Ｃ

32,40980,099

Capital gains
Income from monetary trusts, net
Income from trading securities, net
Gains on sale of securities
Gains on derivatives, net
Foreign exchange gains, net
Other capital gains
Capital losses
Losses on monetary trusts, net
Losses on trading securities, net
Losses on sale of securities
Devaluation losses on securities
Losses on derivatives, net
Foreign exchange losses, net
Other capital losses
Net capital gains (losses)
Core profit plus net capital gains (losses)
Other one-time gains
Gains from reinsurance
Reversal of contingency reserves
Other
Other one-time losses
Losses from reinsurance
Provision for contingency reserve
Provision for reserve for specific problem loans
Provision for reserve for specific overseas receivable assets
Loans amortization
Other
Total other one-time gains (losses)
Ordinary profit

For the Year Ended
March 31, 2010

Notes: 1. Core profit for the fiscal year ended March 31, 2010 (A) includes income gains of ¥8,047 million in income from monetary trusts;
other capital losses include impairment losses of ¥449 million from investment funds.
2. Core profit for the fiscal year ended March 31, 2009 (A) includes income gains of ¥11,986 million in income from monetary trusts;
other capital losses include impairment losses of ¥399 million from investment funds.

15

8. Loans by Borrower Category(Millions of yen)

Category

As of March 31, 2009

As of March 31, 2010

Bankrupt and quasi-bankrupt loans

00Doubtful loans

00Sub-standard loans

0

0

0

0

(-)

(-)

122,600

129,867

122,600

129,867

Sub-total(% to total)
Normal loans
Total

Notes: 1. Bankrupt and quasi-bankrupt loans are loans to borrowers who are subject to bankruptcy, corporate reorganization or
rehabilitation or other similar proceedings and other borrowers in serious financial difficulties.
2. Doubtful loans are loans to obligors (other than bankrupt and quasi-bankrupt obligors) with deteriorated financial
condition and results of operations from which it is unlikely that the principal and interest on the loans will be recovered.
3. Sub-standard loans are loans on which principal and/or interests are past due for three months or more and loans with aconcessionary interest rate, as well as loans with renegotiated conditions in favor of the borrower, including renegotiatedschedule and/or waivers, in each case, other than the loans described in notes 1. and 2. above.
4. Normal loans are all other loans.

9. Risk-Monitored Loans
None.

16

10. Solvency Margin Ratio(Millions of yen)

Category

As of March 31, 2009

Total solvency margin

As of March 31, 2010

531,321630,237

Net assets (less certain items)

131,190

170,329

Reserve for price fluctuations

3,653

9,637

Contingency reserve

45,491

48,4970

0

17,67933,040

4,899

1,633

302,226

316,510

Unallocated portion of reserve for policyholders' dividends

382

2,346

Future profits

－

1,022

Deferred tax assets

25,79747,219Subordinated debt－－

Deductible items－－

51,57147,792(A)

Reserve for possible loan losses
Net unrealized gains on other securities (before taxes)
multiplied by 90% if gains or 100% if losses
Net unrealized gains on real estate multiplied by 85% if gains
or 100% if losses
Excess of the amount equivalent to policy reserve underZillmer method

Total risk

(B)

Insurance risk

R1

18,59519,199

Third-sector insurance risk

R8

7,008

7,094

Assumed interest rate risk

R2

11,241

11,395

Asset management risk

R324,68918,932Business management risk

R4

1,375

1,292

Minimum guarantee risk

R7

7,243

8,023

2,060.5%

2,637.3%

Solvency margin ratio
(A)
x

100

(1/2) x (B)Notes: 1. Calculations employed in the table above apply the methods provided for under Articles 86 and 87 of the Insurance
Business Law of Japan enforcement regulations, as stipulated in 1996 by the Ministry of Finance Official
Notification No. 50.
(Excess of the amount equivalent to policy reserve under Zillmer method is calculated based on Article 1-3-1 of the
Ministry of Finance Official Notification No. 50.)
2. A standard method is used to calculate minimum guarantee risk.

1711. Status of Separate Accounts Assets(1) Balance of Separate Account Assets(Millions of yen)

Category

As of March 31, 2009

As of March 31, 2010

AmountAmountIndividual variable life
insurance and individual
variable annuities
Group annuities

275,160

373,604-

373,604

275,160

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

(2) Status of Individual variable life insurance and individual variable annuities (Separate Account)(i) Policy Amount in Force
1) Individual variable life insurance(Number: Thousand, Amount: Millions of yen)

Category

As of March 31, 2009
NumberVariable life insurance（whole life type）
Variable life insurance（limited term type）
Variable life insurance（term type）
Total

As of March 31, 2010

AmountNumberAmount483

6,404,908

511

6,622,140

41

136,557

42

141,951

1

62,517

1

58,800526

6,603,983

556

6,822,892

Note: Amounts include the rider portion.

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

Category
Individual variableannuities

As of March 31, 2009
NumberAs of March 31, 2010

Amount28

152,525

Note: The figure indicated in the amount column is for annuity resources.

18
18

NumberAmount28

154,718

(ii) Asset composition(Millions of yen)

Category

As of March 31, 2009
AmountAs of March 31, 2010%

Amount%Cash and deposits, call loans

12,923

4.7

21,064

5.6

Securities

260,401

94.6

350,302

93.8

Domestic bonds

111,806

40.6

118,824

31.8

Domestic stocks

19,645

7.1

30,572

8.2

Foreign securities

74,14726.9

110,758

29.6

Bonds

35,56612.9

38,931

10.4

Stocks, etc.

38,581

14.0

71,826

19.2

Other securities

54,801

19.9

90,147

24.1

Loans

－

－

－

－

Other

1,836

0.7

2,237

0.6

－

－

－

－

275,160

100.0

373,604

100.0

Reserve for possible loan losses
Total

Note: Assets relating to individual variable life insurance and individual variable annuities are jointly invested at Sony Life.

(iii) Net investment gains/losses(Millions of yen)

Category

For the Year Ended March 31, 2009

For the Year Ended March 31, 2010

Interests, dividends and income

5,854

6,063

Gains on sale of securities

1,865

1,955

77

410

Valuation gains on securities

22,727

93,561

Foreign exchange gains, net－

0Gains from derivatives, net

8582

Other investment income

0

0

3,712

8,959

Losses on redemption of securities

236

50

Devaluation losses on securities

96,34426,268Foreign exchange losses, net

2,298

3,831

Losses from derivatives, net－

0Other investment expenses

232

205

Net investment gains/losses(72,212)62,757

Gains on redemption of securities

Losses on sale of securities

Note: Assets relating to individual variable life insurance and individual variable annuities are jointly invested at Sony Life.

19

12. Consolidated Summary(1) Key Performance Results(Millions of yen)

Category

For the Year Ended
March 31, 2009

For the Year Ended
March 31, 2010

Ordinary Revenues

766,245882,045

Ordinary Profit

32,54079,781Net Income

33,91545,839Category

As of March 31, 2009

Total assets

As of March 31, 2010

3,810,470

4,286,045(2) Scope of Consolidation and Companies Accounted for under Equity Method
Number of consolidated subsidiaries

1

Number of non-consolidated subsidiaries accounted for under equity method0

Number of affiliated companies accounted for under equity method220

(3) Consolidated Balance Sheets(Millions of yen)
As ofMarch 31,
2009

As of
March 31,
2010

As of
March 31,
2009

As of
March 31,2010

AmountAmountAmountAmount

3,614,211

4,012,335

19,114

21,4253,592,557

3,985,833

2,539

5,076

1,216

1,445

Assets:Liabilities:

Cash and deposits

25,675

46,112

Call loans

45,80091,800Reserve for outstanding claims

Monetary trusts

607,625

288,772

Policy reserve

2,818,578

3,538,090

Loans

120,469

127,615

Reserve for policyholders'
dividends
Due to agencies

Tangible fixed assets

82,80680,937

Due to reinsurers

880

716

Intangible fixed assets

12,187

13,863

Other liabilities

36,92455,53912,72814,991

95

118

3,653

9,637

3,653

9,637

0

0

706

706

3,670,417

4,095,492

Common stock

70,00070,000Capital surplus

5,865

5,865

Retained earnings

61,986

100,825

Total shareholder's equity

137,851

176,690

Net unrealized gains on othersecurities, net of taxes

3,925

15,501

Land revaluation, net of taxes(1,475)(1,475)

(248)

(163)

2,201

13,862

Securities

Due from agencies

1－

Due from reinsurers

104

120

Other assets

61,98971,239Deferred tax assets

35,43927,705

(208)

(212)

Reserve for possible loan losses

Policy reserves and others:

Reserve for employees' retirement
benefits
Reserve for directors' retirement
benefits
Reserve for price fluctuations
Reserve for price fluctuations
Deferred tax liabilities
Deferred tax liabilities on land
revaluation
Total Liabilities
Net Assets:

Foreign currency translation
adjustments
Total valuation and translation
adjustments

Total Assets

3,810,470

4,286,045

Total Net Assets

140,052

190,553

Total Libailities and Net Assets

3,810,470

4,286,045

21

(4) Consolidated Statements of Income(Millions of yen)

For the Year Ended
March 31, 2009
Ordinary revenues
Income from insurance premiums
Investment income
Interest income and dividends
Income from monetary trusts, net
Income from trading securities, net
Gains on sale of securities
Gains on redemption of securities
Gains on derivatives, net
Other investment income
Gains on separate accounts, net
Other ordinary income
Ordinary expenses
Insurance claims and other payments
Insurance claims
Annuity payments
Insurance benefits
Surrender payments
Other payments
Provision for policy reserve and others
Provision for reserve for outstanding claims
Provision for policy reserve
Interest on policyholders' dividend reserve
Investment expenses
Interest expenses
Losses on monetary trusts
Losses on sale of securities
Devaluation losses on securities
Losses on redemption of securities
Foreign exchange losses, net
Provision for reserve for possible loan losses
Depreciation of real estate for rent andothersOther investment expenses
Losses on separate accounts, net
Operating expenses
Other ordinary expenses
Ordinary profit
Extraordinary gains
Gains on sale of fixed assets
Reversal of reserve for price fluctuations
Reversal of reserve for price fluctuations
Extraordinary losses
Losses on sale or disposal of fixed assets
Impairment losses
Provision for reserve for price fluctuations
Provision for reserve for price fluctuations
Other extraordinary losses
Provision for reserve for policyholders' dividends
Income before income taxes
Income taxes -Current
Income taxes -Deferred
Income taxes -Total
Net income
Ordinary profit (loss)

766,245
662,078
99,04956,041－
1,084
32,145
807
8,937
33
－
5,117
733,704
274,793
62,102
7,111
32,898168,137
4,544
219,075
1,708
217,327
39
133,54542856
16,15731,899
262
2,382
134
2,932
6,664
72,212
94,091
12,19832,54020,4471
20,446
20,446
97
60
20
16
(429)
53,32014,087
5,317
19,40533,915Extraordinary gains/losses

22

For the Year Ended
March 31, 2010
882,045
700,158
175,640
70,86422,887－15,1533,939－
37
62,757
6,247
802,264
274,285
64,8597,742
34,670162,697
4,316
395,5832,311
393,267
4
20,62729－
10,078
－
361
870
3
2,763
6,519
－
97,003
14,76379,781
0
0
－
－
6,107
116
5
5,984
5,984
－
3,516
70,157
22,688
1,630
24,31845,83913. (Reference) Results for the Three Months Ended March 31, 2010

(1) New Policy Amount(Number: Thousand, Amount: 100 millions of yen)
For the three months
ended March 31, 2009
Number

For the three months
ended March 31, 2010

AmountNumberAmountYoY Change (%)

YoY Change (%)

119

8,732

140

117.2

10,203116.8

Individual annuities

1

68

1

119.3

84

124.1

Annualized Premiums for
New Policies

-

139

-

-

181

130.0

(Third sector)

-

30

-

-

40

129.5

Individual life insurance(2) Major P/L Items(Millions of yen)
For the three months
ended March 31, 2010

For the three months
ended March 31, 2009

YoY Change (%)
Income from insurance
premiums

172,400

187,903

109.0

Insurance claims and otherpayments

76,447

69,48190.9

23

14. (Reference) Holdings of Securitized Papers and Other Sub-prime Related Investments
Sony Life’s holdings of securitized papers and other sub-prime related investments as of March 31, 2010, are as follows. Sony Life holds
no sub-prime related investments.

(1) Special-purpose entities (SPEs)
Fair value

－
－
－
－
－
－
－

Special purpose entities (SPEs)
ABCP
facilitated by Sony Life
SIV
facilitated by Sony Life
Other
facilitated by Sony Life

Unrealized
gains/losses
－
－
－
－
－
－
－

(Billions of yen)
Gains/losses
recorded in income
－
－
－
－
－
－
－

Unrealized
gains/losses
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

(Billions of yen)
Gains/losses
recorded in income
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

(2) Collateralized debt obligations (CDO)
Fair value

－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

Collateralized debt obligations (CDO)
ABS
CDO
Seniorsub-prime (Alt-A exposure)
Mezzanine
sub-prime (Alt-A exposure)
Equitysub-prime (Alt-A exposure)
CLO

SeniorMezzanine
EquityCBO

SeniorMezzanine
EquityOther

SeniorMezzanine
Equity24

(3) Other sub-prime (Alt-A exposure)
Unrealized
gains/losses
－
－
－
－
－
－

Fair value

－
－
－
－
－
－

Other sub-prime (Alt-A exposure)Non-securitized loans
RMBS
Derivatives
Commitment line
Other

(Billions of yen)
Gains/losses recorded
in income
－
－
－
－
－
－

(4) Commercial mortgage-backed securities (CMBS)(Billions of yen)
Fair value
As of March
31, 2009

Commercial mortgage-backed securities (CMBS)
Japan
USA
EU
UK
Other

－
－
－
－
－
－

－
－
－
－
－
－

Unrealized
gains/losses

Gains/losses recorded
in income

－
－
－
－
－
－

－
－
－
－
－
－

(5) Leveraged finance(Billions of yen)
Fair value
As of March
31, 2009

Leveraged financeCommunications
Electronics
Entertainment
Services
Other

－
－
－
－
－
－

－
－
－
－
－
－

Unrealized
gains/losses

Gains/losses recorded
in income

－
－
－
－
－
－

－
－
－
－
－
－

(6) Other notes
Sony Life holds principal protected 30 year notes with NIKKEI 225 index linked coupon (fair market value of ¥49.8 billion andunrealized gains of ¥7.9 billion as of March 31, 2010). These amounts are included in “Net unrealized gains/losses on other securities,(before taxes)” of Sony Life as of March 31, 2010.

25