【Presentation Material】

Consolidated Financial Results
for the Three Months
Ended June 30, 2019
andSony Lifeʼs MCEV
as of June 30, 2019Sony Financial Holdings Inc.
August 8, 2019

I am Kiyomiya from Sony Financial Holdings.
I would like to explain about consolidated financial results for FY19.1Q
followed by this presentation material.

AGENDA
Consolidated Operating Results for the Three Months Ended June 30, 2019
(FY19.1Q)

P. 3

Forecast of Consolidated Financial Results for the Fiscal Year Ending
March 31, 2020 (FY2019)P. 18

Sony Lifeʼs MCEV as of June 30, 2019

P. 20

Appendix

P. 22

Disclaimers:
This presentation material contains statements concerning the current plans, expectations, strategies and beliefs of the Sony Financial 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. Forwardlooking statements, whether spoken or written, may also be included in other materials 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, andactual business results may vary substantially from 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 inthis presentation 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 or commitment
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.
Copyright © Sony Financial Holdings Inc. All rights reserved.

2

Consolidated Operating Results
for the Three Months Ended
June 30, 2019
(FY19.1Q)

Highlights of Consolidated Financial Results
YoY comparison: Decreased in revenues by 1.7%, increased in
profit by 19.3%.
 Ordinary revenues decreased due mainly to lower net gains on
investments in the separate accounts despite higher income frominsurance premiums in the life insurance business. Ordinary
revenues for the non-life insurance and the banking businesses
increased.
 Ordinary profit increased as the life insurance and the banking
businesses delivered higher profit while the non-life insurance
business was essentially flat.
Consolidated
Financial Resultsfor
FY19.1Q

Operating
Performance

All three businesses steadily expanded their business scale.
Sony Lifeʼs new policy amount was down in comparison withcorresponding period of the previous fiscal year, when the newpolicy amount was high as premiums were changed in line withrevisions to the standard mortality tables. The policy amount inforce was up only slightly from March 31, 2019, due in part to
the impact of yen appreciation.

MCEV as of June 30, 2019 was ¥1,651.2 billion, decreased fromMarch 31, 2019, due mainly to a decrease in interest rates inJapanese yen.
 New business value as of FY19.1Q(3M) was ¥17.0 billion,
decreased from FY18.4Q (3M), due mainly to a lower sales of
insurance products for corporate customers.


Economic
Value-based
Profit Indicator

Copyright © Sony Financial Holdings Inc. All rights reserved.

4

I would like to explain highlights of consolidated financial results for
FY19.1Q.
Ordinary revenues decreased year on year while ordinary profit increased
year on year.
Ordinary revenues decreased due to a decrease in net gains on
investments in the separate account reflecting an impact of market
conditions, despite higher income from insurance premiums.
Ordinary profit increased as the life insurance and the banking businessesdelivered higher ordinary profit, while ordinary profit from the non-life
insurance business was essentially flat.
As the Sony Financial Group, all three businesses expanded theirbusiness scale.
Sony Lifeʼs new policy amount was down in comparison withcorresponding period of the previous fiscal year, when the new policy
amount was high as premiums were changed in line with revisions to thestandard mortality tables. The policy amount in force was up only slightly
from March 31, 2019, due in part to the impact of yen appreciation.
MCEV as of June 30, 2019 decreased from March 31, 2019, due mainly
to a decrease in interest rates in Japanese yen.
New business value as of FY19.1Q (3M) decreased from FY18.4Q (3M),
due mainly to a lower sales of insurance products for corporate
customers.

Highlights of Consolidated Financial Results◆ Ordinary Revenues︓Decreased owing to a decrease in ordinary revenues from the life
insurance business, whereas ordinary revenues from the non-life insurance and thebanking businesses increased.
◆ Ordinary Profit︓Increased as the life insurance and the banking businesses delivered
higher ordinary profit, while ordinary profit from the non-life insurance business was
essentially flat.
Ordinary Profit

Ordinary Revenues

5,000
4,000

420.6

(1.7%)＋19.3%

413.6

3,000

300

34.3

28.8

200

2,000
100
1,000
(JPY bn)
0(JPY bn)0

FY18.1Q

FY19.1Q

FY18.1Q

FY19.1Q

Copyright © Sony Financial Holdings Inc. All rights reserved.

Next, I would like to explain about consolidated financial results.
Ordinary revenues decreased 1.7% year on year, to ¥413.6 billion.
Ordinary profit increased 19.3% year on year, to ¥34.3 billion.
Next, I would like to explain about operating performance ofSony Life.

5

Highlights of Operating Performance : Sony Life (Non-consolidated)◆ Ordinary Revenues︓Decreased year on year due to a decrease in net gains on
investments in the separate account, despite higher income from insurance premiums
due mainly to a steady rise in the policy amount in force.
◆ Ordinary Profit︓Rose year on year despite lower gains on sale of securities in thegeneral account, a decrease in acquisition cost in line with lower acquisition of newpolicies, a decline in lower insurance claims and other payments, and an increase inprofit owing to growing policy amount in force.

Ordinary Profit

Ordinary Revenues

379.3(2.8%)

368.8

300＋23.2%

28.6

23.2
200

100
(JPY bn)(JPY bn)0

FY18.1Q

FY19.1Q

FY18.1Q

FY19.1Q

Copyright © Sony Financial Holdings Inc. All rights reserved.

This is highlights of operating performance of Sony Life.
Ordinary revenues decreased 2.8% year on year, to ¥368.8 billion,
due to a decrease in net gains on investments in the separate account,despite higher income from insurance premiums due mainly to a steadyrise in the policy amount in force.
Ordinary profit increased 23.2% year on year, to ¥28.6 billion, despite
lower gains on sale of securities in the general account,a decrease in acquisition cost in line with lower acquisition of newpolicies, a decline in lower insurance claims and other payments,
and an increase in profit owing to growing policy amount in force.

6

Operating Performance : Sony Life (Non-consolidated) (1)◆ New Policy Amount︓Decreased due to lower sales of family income insurance.
◆ Annualized Premiums from New Policies︓Decreased due to lower sales of term life
insurance and variable life insurance for corporate customers despite a favorable sales of
U.S. dollar-denominated insurance.
Annualized Premiums from New Policies

Number and Amount of New Policies（Individual life insurance + Individual annuities）（Individual life insurance + Individual annuities）
New policy amount
Number of new policies (Thousands of policies)

142
117

+4.8%

149

240
220

18.7

200
180

1.67

1.11

Annualized premiums from new policies
Of which, third-sector

160(27.2%)

1.21

16.1

17.5
(6.5%)

140
120
100
80
60
40
20
(JPY
bn)

(JPY tn)0

FY17.1Q

FY18.1Q

FY19.1Q

3.1
FY17.1Q

3.3(7.8%)

FY18.1Q

3.1
FY19.1Q

Copyright © Sony Financial Holdings Inc. All rights reserved.

7（Left-hand graph）
New policy amount for the total of individual life insurance and individual
annuities decreased 27.2% year on year, to ¥1,219.1 billion, due tolower sales of family income insurance.
The number of new policies increased 4.8% year on year,
to 149 thousand policies.
（Right-hand graph）
Annualized premiums from new policies decreased 6.5% year on year, to¥17.5 billion, due to lower sales of term life insurance and variable life
insurance for corporate customers despite a favorable sales of U.S.
dollar-denominated insurance.
Of which, the figure for third-sector products decreased 7.8%
year on year, to ¥3.1 billion.

Operating Performance : Sony Life (Non-consolidated) (2)
Number and Amount of Policies in Force（Individual life insurance + Individual annuities）
Policy amount in force
Number of policies in force (Millions of policies)

7.84

7.62

+0.9%

（Individual life insurance + Individual annuities）

Annualized premiums from insurance in force
Of which, third-sector

7.91
856.3

893.2

889.3
+0.4%

49.8

49.5

47.8

Annualized Premiums from Insurance in Force+0.5%(JPY bn)(JPY tn)

Jun. 18

Mar. 19

Jun. 19

193.5

197.5

Jun. 18

Mar. 19

+0.6%

198.6

Jun. 19

Copyright © Sony Financial Holdings Inc. All rights reserved.

8

Sony Lifeʼs policy amount in force which reflects new policy amount andlapse and surrender amount, are shown here.
(Left-hand graph)
Policy amount in force for the total of individual life insurance andindividual annuities increased 0.5% from March 31, 2019,to ¥49.8 trillion.
The number of policies in force increased 0.9% from March 31, 2019, to¥7.91 million polices.
(Right-hand graph)
Annualized premiums from insurance in force increased 0.4% from March
31, 2019, to ¥893.2 billion.
Of which, the figure for third-sector products was up 0.6% from March
31, 2019, to ¥198.6 billion.

Operating Performance : Sony Life (Non-consolidated) (3)◆ Lapse and Surrender Rate︓Down due to a decrease in cancellation of policies, withcertain customers cancelling existing policies and, taking out new family income
insurance and other policies, as premiums were revised in line with revision to thestandard mortality tables in February 2018.
Lapse and Surrender Rate*（Individual life insurance + Individual annuities）
Annual

1Q

6.06
4.97

1.90

(0.74pt)

1.16

1.00
（%）

FY2017FY2018FY2019*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.
Copyright © Sony Financial Holdings Inc. All rights reserved.

9

The lapse and surrender rate was down 0.74 percentage points year on
year, to 1.16%.
The fall in the lapse and surrender rate was due to a decrease incancellation of policies, with certain customers cancelling existing policies
and, taking out new family income insurance and other policies, aspremiums were revised in line with revisions to the standard mortality
tables in February 2018.

Operating Performance : Sony Life (Non-consolidated) (4)◆ Core Profit︓Increased due to a decrease in acquisition cost in line with lower
acquisition of new policies, lower insurance payments and an increase in profit owing to
growing policy amount in force.
Core Profit and Adjusted Core Profit
Core profit

300

26.7

24.9
20.6

◆ Details of core profit

Adjusted core profit+11.4%

29.8
27.2

23.3
+16.4%

FY17.1Q

FY18.1Q

FY19.1Q

4.5

4.2

4.7

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

(0.1)

(0.8)

(2.0)

Adjusted core profit (**)

20.6

23.3

27.2

(JPY bn)
Positive spread*Provision of policy reserves for minimum guarantees for variable life insurance is
described as negative amount.
**Adjusted core profit = (Core profit) ‒ (Positive spread) ‒ (Provision of policy reserves
for minimum guarantees for variable life insurance)(JPY bn)0

FY17.1Q

FY18.1Q

FY19.1Q

Copyright © Sony Financial Holdings Inc. All rights reserved.

10Core profit increased 11.4% year on year, to ¥29.8 billion,
due to a decrease in acquisition cost in line with lower acquisition of newpolicies, lower insurance payments and an increase in profit owing to
growing policy amount in force.
Adjusted core profit, which subtracting positive spread and provision ofpolicy reserves for minimum guarantees for variable life insurance fromcore profit, increased 16.4% year on year, to ¥27.2 billion.

Operating Performance : Sony Life (Non-consolidated) (5)◆ Ordinary Profit︓Increased due to an increase in core profit and an increase in gains onhedges of variable life insurance.
Core Profit and Ordinary Profit
Core profit

Ordinary profit+11.4%

24.9

26.7

29.8

28.6

23.2

15.8

(JPY bn)0

FY18.1Q

FY17.1Q

FY18.1Q

FY19.1Q

Core profit

24.9

26.7

29.8

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

(3.0)

2.6

2.5

Gains (losses) on hedges of variable
life insurance

(4.2)

(3.9)

(1.4)

Provision of contingency reserve (**)

(1.7)

(2.1)

(2.2)

Others

(0.0)

(0.0)

(0.0)

Ordinary profit

15.8

23.2

28.6

(JPY bn)+23.2%

200

FY17.1Q◆ Difference from core profit

FY19.1Q*Capital gains (losses) exclude gains or losses on hedges of variable life insurance.
** Provision of contingency reserve is described as negative amount.

Copyright © Sony Financial Holdings Inc. All rights reserved.

Ordinary profit increased 23.2% year on year, to ¥28.6 billion,
due to an increase in core profit and a an increase in gains onhedges of variable life insurance.

11

Operating Performance : Sony Life (Non-consolidated) (6)

Number of Lifeplanner Sales Employees
(19)

5,142

5,135

5,147

5,106

5,164

5,116
(48)

（Number）

Mar. 18

Jun. 18

Sep. 18

Dec. 18

Mar. 19

Jun. 19

Copyright © Sony Financial Holdings Inc. All rights reserved.

The number of Lifeplanner sales employees as of June 30, 2019,was 5,116, down 48 from March 31, 2019 and down 19 from
June 30, 2018.
Sony Life will work to expand its business scale through stringent
recruiting of Lifeplanner sales employees and further enhancing theirproductivity.
Next, I would like to explain about operating performance ofSony Assurance.

12

Highlights of Operating Performance : Sony Assurance◆ Ordinary Revenues and Ordinary Profit : Ordinary revenues rose due mainly to anincrease in net premiums written for mainstay automobile insurance. Ordinary profit
was essentially flat.

Ordinary Profit

Ordinary Revenues

29.7

＋7.3%

31.8
3.8

＋2.4%

3.8

(JPY bn)(JPY bn)

FY18.1Q

FY19.1Q

FY18.1Q

FY19.1Q

Copyright © Sony Financial Holdings Inc. All rights reserved.

Ordinary revenues rose 7.3% year on year, to ¥31.8 billion,
due mainly to an increase in net premiums written for mainstay
automobile insurance.
Ordinary profit was essentially flat year on year, to ¥3.8 billion.

13

Operating Performance : Sony Assurance (1)◆ Net Premium Written︓Increased due to stable sales of automobile insurance.
Ordinary Profit andAdjusted Ordinary Profit

Net Premium Written
Voluntary automobile insurance
Others

30.4

29.0

27.5

Adjusted ordinary profit

Ordinary profit

Personal accident insurance

3.8

3.8
3.2

200

4.8

＋2.9%

4.7

＋4.7%

＋2.4%

2.3
xx
(JPY bn)0

FY17.1Q

FY18.1Q

FY19.1Q*Adjusted ordinary profit = Ordinary profit + Provision for catastrophe reserve(JPY bn)0（Reference) Provision for catastrophe reserve

FY17.1Q

FY18.1Q

FY19.1Q

Note: Most of personal accident insurance is medical insurance.

（JPY bn） FY17.1Q

FY18.1Q

FY19.1Q

0.8

0.9

0.9

Provision for catastrophe reserve*Provision for catastrophe reserve is described as positive amount.
Copyright © Sony Financial Holdings Inc. All rights reserved.

14(Left-hand graph)
Net premiums written increased 4.7% year on year, to ¥30.4 billion due
to stable sales of automobile insurance.
(Right-hand graph)
Ordinary profit increased year on year as described before.
Adjusted ordinary profit is an profit indicator on a managerial accounting
basis. The figure is calculated by adjusting the amountof provision (reversal) for catastrophe reserve to ordinary profit.
Adjusted ordinary profit was ¥4.8 billion.

Operating Performance : Sony Assurance (2)◆ Sum of Two Ratios︓Remained essentially flat due mainly to lower E.I. loss ratio
reflecting lower accident ratio despite an increase in expense ratio.
Sum of Two Ratios（E.I. Loss Ratio ＋ Net Expense Ratio）
E.I. loss ratio

Net expense ratio

84.5

81.2

Combines Ratio（Net Loss ratio＋ Net Expense Ratio）
Net loss ratio

Net expense ratio

76.7

76.1

81.0
(0.2pt)（%）(0.6pt)78.2＋2.1pt

56.3

58.6

56.9

25.9

24.3

24.7

FY17.1Q

FY18.1Q

FY19.1Q

50.8

51.8

25.9

24.3

＋1.7pt53.5+0.4pt+0.4ptNotes:
E.I. loss ratio = (Net losses paid + Provision for reserve for outstanding losses
and claims+ Loss adjustment expenses) / Earned premiums x100
[Earthquake insurance and compulsory automobile liability insurance are excluded.]

（%）

24.7

FY17.1Q
FY18.1Q
FY19.1Q
Notes:Net loss ratio = (Net losses paid + Loss adjustment expenses) /Net premiums written x100
Net expense ratio = Expenses related to underwriting / Net premiums written x100
Copyright © Sony Financial Holdings Inc. All rights reserved.

15(Left-hand graph)
The sum of two ratios (E.I. loss ratio + net expense ratio) remained
essentially flat year on year, to 81.0%, due mainly to lower E.I. loss ratio
reflecting lower accident ratio despite an increase in expense ratio.
(Right-hand graph)
The net loss ratio was up 1.7 percentage points year on year,
to 53.5%.
This is different from the E.I. loss ratio, which reflects an increase or adecrease in provision for reserve for outstanding losses.
The combined ratio (the sum of the net loss ratio and the net expense
ratio) was up 2.1 percentage points year on year, to 78.2%.
Next, I would like to explain about operating performance ofSony Bank.

Highlights of Operating Performance : Sony Bank (Consolidated)◆ Ordinary Revenues and Ordinary Profit︓Rose due mainly to increases in interest income
on investment securities and on loans in line with a growing balance of mortgage loans.

Ordinary Profit

Ordinary Revenues

10.7＋10.7%

11.9

2.2

2.4

＋9.3%

(JPY bn)(JPY bn)

FY18.1Q

FY19.1Q

FY18.1Q

FY19.1Q

Copyright © Sony Financial Holdings Inc. All rights reserved.

16

In consolidated basis, ordinary revenues increased 10.7% year on year,to ¥11.7 billion, due to increases in interest income on investment
securities and on loans in line with a growing balance of mortgage loans.
Ordinary profit increased 9.3% year on year, to ¥2.4 billion,
for the same reasons as ordinary revenues.

Operating Performance : Sony Bank (Non-consolidated)◆ Customer Assets
・Yen Deposits︓Increased due to an increase in newly accumulated funds via the increased number ofaccounts.
・Foreign Currency Deposits︓Increased due mainly to an increase in U.S. dollar deposits in line withappreciation of Japanese yen.
◆ Loans Outstanding・Expanded due to a steady increase in mortgage loans.
Customer Assets
30,000

Yen deposits

25,0002,343.0

Foreign currency deposit

123.7

20,000419.6

Mortgage loans

2,526.9

2,483.3
124.3

Loans Outstanding
Investment trusts+43.6

1,596.3

123.4

Others

1,782.7

1,744.1
53.7

70.7

+38.6

51.4*

*Corporate loansof ¥33.5 billion,

440.1

Card loans of¥17.9 billion.

404.6

15,0001,690.3

10,0001,939.3

1,814.7

1,731.2

1,525.5

1,963.3

5,000(JPY bn)
0(JPY bn)

Mar. 18

Mar. 19

Jun. 19

Mar. 18

Mar. 19

Jun. 19

Copyright © Sony Financial Holdings Inc. All rights reserved.

17(Left-hand graph)
As of June 30, 2019, customer assets amounted to ¥2,526.9 billion, up¥43.6 billion from March 31, 2019.
Of this amount, the yen deposit balance amounted to ¥1,963.3 billion, up¥23.9 billion from March 31, 2019, due mainly to
an increase in newly accumulated funds via the increased number ofaccounts.
The yen-denominated balance of foreign currency deposits amounted
to ¥440.1 billion, up ¥20.5 billion from March 31, 2019, due mainly
to an increase in U.S. dollar deposits in line with appreciation ofJapanese yen(Right-hand graph)
The loan balance as of June 30, 2019 expanded ¥38.6 billion from March
31, 2019, to ¥1,782.7 billion, due to a steady increase in mortgage
loans.
This conclude the explanation of the results of three companies.

Forecast of Consolidated Financial
Results for the Fiscal Year Ending
March 31, 2020
(FY2019)

Forecast of Consolidated Financial Results for FY2019
Forecast of consolidated financial results for FY2019 is unchanged from the forecast
announced on April 26, 2019.
We maintain our full-year forecasts, taking into consideration the business environment from FY19.2Q
onward, although ordinary revenues were essentially in line with our expectations and ordinary profit
exceeded our expectation in FY19.1Q for all three businesses.
(JPY bn)
Ordinary revenues

FY2018（Actual）

FY2019（Forecast）

Change1,629.1

1,690.0+3.7%

1,464.3

1,520.5+3.8%

Non-life insurance business

115.1

121.2

+5.3%

Banking business

46.0

49.3

+7.1%

93.8

98.0

+4.4%

Life insurance business

78.2

84.2

+7.7%

Non-life insurance business

6.8

7.0

+1.5%

Banking business

9.5

8.6

(10.4%)

62.0

65.0

+4.7%

Life insurance business

Ordinary profit

Profit attributable to ownersof the parents

Note: The above forecast is not included the impact of conversion AEGON Sony Life Insurance and SA Reinsurance into
wholly-owned subsidiaries of Sony Life. The impact on forecast of consolidated financial results is currently under
careful evaluation.
Copyright © Sony Financial Holdings Inc. All rights reserved.

19

Forecast of consolidated financial results for FY2019 is unchanged fromthe forecast announced on April 26, 2019.

Sony Lifeʼs MCEV
as of June 30, 2019
A part of the calculations of MCEV adopted simplified method for that as of June 30, 2019.
Please keep in mind that the validity of these calculations has not been verified by outside specialists.

Sony Lifeʼs MCEV
◆ Reasons for Changes in MCEV
・MCEV as of June 30, 2019 decreased ¥69.0 billion from March 31, 2019, due mainly to a decrease ininterest rates in Japanese yen.
◆ New Business Value / New Business Margin
・New business value for FY19.1Q (3M) was ¥17.0 billion, due mainly to a lower sales of insurance
products for corporate customers.
・New business margin for FY19.1Q (3M) was up 0.4pt from FY18.4Q (3M), due to an assumptionchanges and changes in product mix despite a decrease in interest rates.

（JPY bn）
MCEV

Mar. 19

Jun. 19

ChangefromMar. 19

1,720.2

1,651.2(69.0)

Adjusted net worth

2,195.7

2,432.0+236.2

Value of existing business(475.5)(780.7)(305.2)（JPY bn）

FY18.4Q(3M)

FY19.1Q(3M)

New business value

23.1

17.0

New business margin

5.0%

5.4%

Note: Calculated MCEV as of June 30, 2019 by using mainly updated economic assumptions and lapse and surrender rate from March 31, 2019.
*Please refer to page 39-42 for trend on bond yields and yield curves.

Copyright © Sony Financial Holdings Inc. All rights reserved.

21

Sony Lifeʼs MCEV as of June 30, 2019 was ¥1,651.2 billion,
down ¥69.0 billion from March 31, 2019, due mainly toa decrease in interest rates in Japanese yen.
New business value for FY19.1Q (3M) was ¥17.0 billion,
due mainly to a lower sales of insurance products for corporate customers.
New business margin for FY19.1Q (3M) was 5.4%,
up 0.4 percentage points from FY18.4Q (3M), due to an assumption changes
and changes in product despite a decrease in interest rates.
Consolidated adjusted ROE for FY19.1Q (3M) was 1.4%.
Please refer page 23 and 24 on appendix.
This conclude the explanation.
Thank you.

◆Sony Financial Group
Detail of Consolidated Adjusted ROE
Detail of Consolidated Adjusted Profit andConsolidated Adjusted Capital
Calculation of Consolidated Adjusted ROE
Update of Major KPIs
Financial Soundness
Results of Cross-selling

Appendix◆Sony Life
Product Portfolio
Asset Management
General Account Assets
Interest Income and Dividends (Details)
Capital Gains (Losses)
Quarterly Trend on New Policy Amount
Quarterly Trend on Annualized Premiums from New Policies
Quarterly Trend on New Business Value
ESR
Operating Performance : AEGON Sony Life Insurance
Trend on JGB Yields (Par rate)
Trend on Risk-free Rate (Japanese yen/Par rate)
Trend on U.S. Dollar Bonds Yields (Par rate)
Trend on Risk-free Rate (U.S. Dollar /Par rate)◆Financial Results of Each Group Company（Summary Financial Statements, etc.）
Consolidated/Sony Life/Sony Assurance/Sony BankDetail of Consolidated Adjusted ROE

FY2018(12M)

FY18.1Q(3M)

FY19.1Q(3M)

Consolidated Adjusted ROE

6.7%

1.7%

1.4%

(Sony Life) Core ROEV

6.4%

1.6%

1.2%

(Sony Assurance) Adjusted ROE

15.2％

7.0%

6.5%

(Sony Bank) ROE

7.3%

1.7%

1.8%

Copyright © Sony Financial Holdings Inc. All rights reserved.

23

Detail of Consolidated Adjusted Profit andConsolidated Adjusted Capital◆ Adjusted capital (Denominator）◆ Adjusted profit（Numerator)
Sony Financial Group（consolidated）

FY2018

FY18.1Q

FY19.1Q

120.4

30.3

25.9

Sony Life(non-consolidated)

FY2018Fy18.1Q

FY19.1Q

New business value *

91.3

21.9

17.0

Expected existing business
contribution *

15.0

3.5

3.7

Adjusted profit(consolidated)

Adjusted profit

106.4

25.5

20.8

Sony Assurance

FY2018

FY18.1Q

FY19.1Q

Net income

4.9

2.7

2.7

Provision amount forcatastrophe reserve (after tax)

2.6

0.6

0.7

Provision amount for reservefor price fluctuations(after tax)

0.0

0.0

0.0

Adjusted profit

7.6

3.3

3.4

Sony Bank(consolidated)

FY2018

FY18.1Q

FY19.1Q

Profit attributable to ownersof the parent

6.3

1.4

1.6

Sony Financial Group（consolidated）

FY2018

FY18.1Q

FY19.1Q

Adjusted capital(consolidated)

1,801.8

1,735.8

1,811.8

Sony Life(non-consolidated)

FY2018

FY18.1Q

FY19.1Q①MCEV as of the beginning of
the fiscal year

1,633.1

1,633.1

1,720.2

26.2

26.2

32.2

③MCEV as of the end of theperiod *1,720.2

1,593.4

1,651.2

Adjusted capital（①−②＋③）/２

1,663.5

1,600.2

1,669.6

Sony Assurance

FY2018②Dividends paid

FY18.1Q

FY19.1Q①Net assets

34.7

33.1

35.1

②Catastrophe reserve

17.7

15.7

18.4

③Reserve for price fluctuations

0.1

0.1

0.1

Adjusted capital （①＋②＋③）

50.5

48.7

53.2

FY18.1Q

FY19.1Q

86.9

88.9

Sony Bank(consolidated)

FY2018Adjusted capital（The averageamount of net assets during
the period）

87.6* Please keep in mind that the validity of these calculations has not been verified by outside specialists for the figures for FY18.1Q and FY19.1Q.
Copyright © Sony Financial Holdings Inc. All rights reserved.

24

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 bytwo.

The average amount of net
assets plus the sum ofcatastrophe reserve and its
reserve for price fluctuations
during the fiscal year,
in each case after taxes ⑤

＋

＋

①

④

＋

Sony Bank
ROE
Profit (loss) attributable toowners of the parent③

The average amount of net
assets during the fiscal year⑥

* Consolidated Adjusted ROE = Consolidated Adjusted Profit divided by Consolidated Adjusted Capital
Consolidated Adjusted Profit ＝ ①＋②＋③
Consolidated Adjusted Capital ＝ ④＋⑤＋⑥
Copyright © Sony Financial Holdings Inc. All rights reserved.

25

Update of Major KPIs

Sony Life
Policy Amount in Force *1
47.8

49.5

49.8

（JPY tn）
Jun. 18

27.2

28.8

Jun. 19

FY17.1Q

Retail Balance*2

30.3

3.9

4.2

4.2

Mar. 19

Jun. 19（JPY tn）（JPY bn）
Mar. 19

Sony Bank

Sony Assurance
Direct Premiums Written

FY18.1Q

FY19.1Q

Jun. 18*1 Individual Life Insurance + Individual Annuities*2 Sum of yen deposits, foreign currency deposits, investment trusts, financial products intermediary services, mediated discretionary investment
contracts and personal loans
Copyright © Sony Financial Holdings Inc. All rights reserved.

26

Financial Soundness

Change from
Mar. 19

Jun. 18

Mar. 19

Jun. 19

2,648.6%

2,590.5%

2,612.5%+22.0pt

Sony Assurance
Solvency margin ratio

828.4%

813.0%

872.9%+59.9pt

Sony Bank (non-consolidated)
Capital adequacy ratio (domestic standard)

10.42%

9.58%

9.54％

(0.04pt)（%）

Sony Life (non-consolidated)
Solvency margin ratio

Copyright © Sony Financial Holdings Inc. All rights reserved.

27

Results of Cross-selling Sony Bankʼs Mortgage Loans through Sony Life
Sony Life accounts for 11% of the amount of new mortgage loans for FY19.1Q (3M)
Sony Life accounts for 18% of the balance of mortgage loans as of June 30, 2019※Sony Life started handling banking agency business in January 2008.

 Sony Assuranceʼs Automobile Insurance Sold by Sony Life
Sony Life accounts for 6% of new automobile policies for FY19.1Q (3M)
※Sony Life started handling automobile insurance in May 2001.

Copyright © Sony Financial Holdings Inc. All rights reserved.

28

Sony Lifeʼs Product Portfolio(Annualized Premiums from New Policies by Product)
FY18.1Q（3M）¥18.7 billion

Yen whole
life 3%

Savings typeproducts
30%

U.S. dollardenominatedwhole life
14%

U.S. dollar-denominatedsingle- premium whole
life insurance 8%

FY19.1Q（3M）¥17.5 billion¥87.9
billionProtection-type（term-life）
45％

Yen whole
life 3%
U.S. dollardenominatedwhole life 18%

FY18（12M）¥87.9 billion

Yen whole U.S. dollarlife 3%
denominatedwhole life
13%
Savings typeproducts
27%

U.S. dollar-denominatedsingle- premium whole
life insurance 7%

Savings typeproducts
41%

U.S. dollar-denominatedsingle- premium whole
life insurance 12%

Protection-type（term-life）
26％

Protection-type（term-life）
50％

Note: Savings type products = Endowment・Annuities・Educational endowment insurance

Copyright © Sony Financial Holdings Inc. All rights reserved.

29

Sony Lifeʼs Asset Management(Purchase Securities in the General Account)
Japanesestocks1.0%

FY18.1Q（3M）

FY19.1Q（3M）
Foreign bonds
26.2%

JGBs
43.9%

Japanesestocks0.1%

Japanese
corporate
bonds
28.9%

Japanesestocks0.2%

FY18（12M）

Foreign bonds
63.7%
社債
25.9%

Foreign bonds
23.5%

Japanese
corporate
bonds
12.7%

JGBs
29.5%

JGBs
63.6%

Japanese corporate
bonds
6.6%

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)
Copyright © Sony Financial Holdings Inc. All rights reserved.

30

Sony Lifeʼs General Account Assets(Detail of General Account Assets)◆ Asset management review
We have continued to accumulate ultralong-term bonds to match the liability characteristics of insurance
policies with long-term maturities with the aim of reducing interest rate risk.
Mar. 19

Jun. 19

Amount%Amount%Japanese bonds(including JGBs)

7,745.3

85.3%

7,848.4

83.2%

Japanese stocks

28.6

0.3%

28.6

0.3%

Foreign bonds

542.1

6.0%

710.5

7.5%

Foreign stocks

22.5

0.2%

20.5

0.2%

Money held in trust

269.3

3.0%

267.9

2.8%

Policy loans

198.3

2.2%

200.6

2.1%

Real estate*

90.8

1.0%

90.5

1.0%

Cash and call loans

61.9

0.7%

126.4

1.3%

Others

120.2

1.3%

134.9

1.4%

9,079.4

100.0%

9,428.6

100.0%（JPY bn）

Total◆ Bond duration
Mar. 18 : 21.4 years
Mar. 19 : 21.8 years
Jun. 19 : 21.9 years◆ Investment in the money held in trustis 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. 18 : 89.5%
Mar. 19 : 88.3%
Jun. 19 : 86.1%*Real estate is the total of land, buildings, and construction in progress.
Copyright © Sony Financial Holdings Inc. All rights reserved.

31

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

FY18.1Q

ChangeFY19.1Q

32,01033,011+3.1%

Japanese bonds(including JGBs)

100

81

(19.0%)

Japanese stocks

4,053

6,141

+51.5%

Foreign securities277

ー(100.0%)

Other securities

1,685

1,736

+3.0%

Loans

2,151

2,422

+12.6%

139109(21.8%)

40,41943,501+7.6%

Cash and deposits

Real estate
OthersCopyright © Sony Financial Holdings Inc. All rights reserved.

32

Sony Lifeʼs Capital Gains (Losses)（JPY mn）

FY18.1Q

FY19.1Q

16,85012,643Losses on trading securities, net

42−

Losses on sale of securities…(3)

34

−

7,855

1,579

3,901

1,781

874

(222)

2,974

7

Capital losses

Losses on derivatives, net
Losses on hedges of variable life
insurance…(1)Losses on hedges of available-for-salesecurities…(2)Losses on U.S. dollar-denominatedinsurance…(4)Foreign exchange losses, net−

11,039Losses on U.S. dollar-denominatedinsurance…(4)−11,365Losses on hedges of variable life
insurance…(1)−Other capital losses

8,917

Losses on U.S. dollar-denominatedinsurance（the provision of policy
reserves for foreign exchange
fluctuations)…(4)

8,917

(333)
25

（JPY mn）
Capital gains

FY18.1Q

FY19.1Q

15,552

13,741

Gains on sale of securities…(3)

3,265

1,238

Foreign exchange gains, net

12,287−

12,203−−

12,497−

12,249(1,297)

1,097

Gains on U.S. dollar- denominatedinsurance (foreign exchange gains inseparate account）…(4)Other capital gains
Gains on U.S. dollar-denominatedinsurance（the reversal of policy
reserves for foreign exchange
fluctuations)…(4)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（JPY mn）(1) Gains (Losses）on hedges of variable life
insurance

FY18.1Q(3,901)

FY19.1Q(1,447)(2) Gains (losses）on hedges ofavailable-for-sale securities

(874)

222

(3) Gains (losses) on sale of securities

3,230

1,238

311

1,124

(4) Gains (losses) on U.S. dollardenominated insurance

Copyright © Sony Financial Holdings Inc. All rights reserved.

33

Sony Lifeʼs Quarterly Trend on New Policy Amount

1,842.4

1,674.7
1,485.0

1,115.8

1,114.8

1,435.5

1,555.1

1,214.7

1,219.1（JPY bn）

0.0
FY17.1Q

FY17.2Q

FY17.3Q

FY17.4Q

FY18.1Q

FY18.2Q

FY18.3Q

FY18.4Q

FY19.1Q

Note : Individual Life Insurance + Individual Annuities

Copyright © Sony Financial Holdings Inc. All rights reserved.

34

Sony Lifeʼs Quarterly Trend on
Annualized Premiums from New Policies
Annualized premiums from new policies

Of which, third-sector

30.9

19.5

21.1

18.7

19.2

18.9

17.5

16.1

16.2

3.1

2.8

3.3

3.6

3.3

3.9

3.8

4.0

3.1

FY17.1Q

FY17.2Q

FY17.3Q

FY17.4Q

FY18.1Q

FY18.2Q

FY18.3Q

FY18.4Q

FY19.1Q（JPY bn）

Note : Individual Life Insurance + Individual Annuities

Copyright © Sony Financial Holdings Inc. All rights reserved.

35

Sony Lifeʼs Quarterly Trend on New Business Value

19.8

21.1

21.9

22.6

23.6

23.1

17.1

17.0

12.2

（JPY bn）

FY17.1Q

FY17.2Q

FY17.3Q

FY17.4Q

FY18.1Q

FY18.2Q

FY18.3Q

FY18.4Q

FY19.1Q

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 FY2018 onward reflect the revision in the insurance risk measurement method and others which revised on March 31, 2018.
Copyright © Sony Financial Holdings Inc. All rights reserved.

36

Sony Lifeʼs ESR
 The risk amount based on economic value as of June 30, 2019 was ¥758.5 billion, up ¥16.1 billion from March 31, 2019,
resulting from a decrease in interest rate risk, offsets by an increase in insurance risk due to a drop in interest rates.
 ESR as of June 30, 2019 was 220%, down 14pt from March 31, 2019 due mainly to a decrease in MCEV.
（JPY bn）

Mar. 19

ChangeJun. 19

Insurance risk

547.3

586.2

+38.8

Market-related risk

332.5

299.9

(32.6)

202.1

159.2

(42.8)

Operational risk

33.4

35.0

+1.6

Counter party risk

3.0

4.1

+1.0

(174.0)(166.8)

+7.2

742.3

758.5

+16.1

Of which, interest rate risk

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

MCEV + Frictional costs
ESR

Mar. 19

ChangeJun. 19

1,743.7

1,672.2(71.5)

235%

220%(14pt)

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.
Copyright © Sony Financial Holdings Inc. All rights reserved.

37

Operating Performance : AEGON Sony Life Insurance◆AEGON Sony Life Insuranceʼs new policy amount and policy amount in force

Number and Amount of New Policies*

Number and Amount of Policies in Force**

New policy amount

Policy amount in force

Number of new policies (Thousands of policies)

Number of policies in force (Thousands of policies)

11.4

10.1

2.5

521.9

522.7

524.1

93.2

94.5

95.5

Jun. 18

Mar. 19

Jun. 19

7.1
1.7

1.5

（JPY bn）（JPY bn）

FY17.1Q

FY18.1Q

FY19.1Q*Amounts for FY17.1Q and FY18.1Q are individual annuities while amounts for
FY19.1Q are total of individual insurance and individual annuities◆Net income (losses) for AEGON Sony Life and SA Reinsurance（JPY bn）

FY18.1Q

FY19.1Q** Amounts for as of Jun. 2018 are individual annuities while amounts forMar. 2019 and Jun. 2019 are total of individual insurance and individual
annuities

ChangeAEGON Sony Life

(0.8)

(0.4)

+0.4

SA Reinsurance

0.3

0.0

(0.2)

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.

Copyright © Sony Financial Holdings Inc. All rights reserved.

38

Trend on JGB Yields (Par rate)
0.80%

10 years
20 years
30 years

0.60%

40 years
0.40%

0.20%

0.00%

(0.20%)△0.20%
Mar. 19

Apr. 19
Mar. 19

May. 19
Apr. 19

Jun. 19

May 19Jun. 19

10 years(0.08%)(0.05%)(0.09%)(0.16%)

20 years

0.34%

0.37%

0.30%

0.23%

30 years

0.51%

0.56%

0.46%

0.36%

40 years

0.58%

0.63%

0.50%

0.41%

Copyright © Sony Financial Holdings Inc. All rights reserved.

39

Trend on Risk-free Rate (Japanese yen/Par rate)
1.60%
1.40%
1.20%

Convergence
period: 20 year

Mar. 19
Jun. 19

1.00%
0.80%
0.60%
0.40%
0.20%
0.00%
△0.20%(0.20%)△0.40%(0.40%)
1 yearLast liquid point:
40 year

10
years

20
years

30
years

40
years

50
years

60
years

70
years

80
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%).
Copyright © Sony Financial Holdings Inc. All rights reserved.

40

Trend on U.S. Dollar Bonds Yields (Par rate)
3.20%

10 years
20 years

3.00%

30 years

2.80%
2.60%
2.40%
2.20%
2.00%
1.80%
1.60%
Mar. 19

Apr. 19
Mar. 19

May. 19
Apr. 19

Jun. 19

May 19Jun. 19

10 years

2.41%

2.50%

2.13%

2.01%

20 years

2.63%

2.74%

2.38%

2.31%

30 years

2.82%

2.93%

2.57%

2.53%

Copyright © Sony Financial Holdings Inc. All rights reserved.

41

Trend on Risk-free Rate (U.S. Dollar /Par rate)
3.10%

Convergence
period: 30 year

Mar.192.90%

Jun. 19

2.70%
2.50%
2.30%
2.10%
1.90%
1.70%
1.50%

Last liquid point:
30 year1 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%).
Copyright © Sony Financial Holdings Inc. All rights reserved.

42

Consolidated︓Summary Financial Statements（JPY bn）
Life insurance
business
Non-life
insurancebusiness
Bankingbusiness
Intersegment
adjustments*

Consolidated

FY18.1Q

FY19.1Q

Change

379.4

368.8

(10.5)(2.8%)

Ordinary profit

22.9

28.3

+5.3

+23.5%

Ordinary revenues

29.7

31.8

+2.1

+7.3%

3.8

3.8

+0.0

+2.4%
+10.7%

Ordinary revenues

Ordinary profit

10.7

11.9

+1.1

Ordinary profit

2.2

2.4

+0.2

+9.2%

Ordinary revenues

0.7

1.0

+0.2

+32.7%

Ordinary revenues

Ordinary profit

(0.1)

(0.2)

(0.1)

ー

Ordinary revenues

420.6

413.6

(7.0)

(1.7%)

Ordinary profit

28.8

34.3

+5.5

+19.3%

Profit attributableto owners of theparent

20.0

24.0

+3.9

+19.6％*“Intersegment adjustments” is from SFH, the nursing care business, and the venture capital business.
Sony Financial Ventures Inc. and SFV・GB L.P. are included in the scope of consolidation from FY18.2Q and
FY18.4Q, respectively.
(Note) Comprehensive income : FY18.1Q: ¥15.7 billion, FY19.1Q: ¥25.5 billion（JPY bn）
Consolidated

Net assets
Total assets

Mar. 19

Jun. 19

Change from Mar. 19

656.8

655.2

(1.6)

(0.2%)

13,468.2

13,989.3+521.1+3.9%

Copyright © Sony Financial Holdings Inc. All rights reserved.

43

Sony Life︓Summary Financial Statements（Non-consolidated）（JPY bn）
Ordinary revenues

FY18.1Q
379.3

FY19.1Q
368.8

Mar. 19

Jun. 19(2.8%)

Securities

9,523.8

9,862.6+338.8+3.6%

Policy reserves

9,268.4

9,436.9+168.5

+1.8%

513.9

502.7

(11.1)(2.2%)

122.7

123.7

+1.0

+0.8%

10,380.1

10,767.6+387.5+3.7%

1,300.7

1,338.9

+38.2

+2.9%

FY18.1Q

FY19.1Q

47.7

31.4

（JPY bn）

Change(10.5)

Income from insurance
premiums

269.5

301.4

+31.8

+11.8%

Investment income

106.9

64.3

(42.6)(39.8%)

Interest income
and dividends

40.4

43.5

+3.0

+7.6%

Gains on sale ofsecurities

3.2

1.2

(2.0)

(62.1%)

Foreign exchange
gains, net

12.2

ー

(12.2)(100.0%)Gains on separate
accounts, net

49.8

18.4

(31.4)(63.0%)

356.0

340.1

(15.9)(4.5%)

Insurance claims andother payments

100.8

109.4

+8.6

+8.5%

Provision for policy
reserves and others

Ordinary expenses

202.0

168.9

(33.0)(16.4%)

Investment expenses

9.3

14.4

+5.1

+54.9%

Losses onderivatives, net

7.8

1.5

(6.2)

(79.9%)

Foreign exchange
losses, net

ー

11.0

+11.0

ー

Operating expenses

35.4

37.3

+1.9

+5.4%

Ordinary profit

23.2

28.6

+5.3

+23.2%Net income

16.3

20.0

+3.6

+22.2%Net assets
Net unrealized gains
on other securities
Total assets
Separate accountassets（JPY bn）
Gains from investment,net (General account)

Change from Mar. 19

Change from Mar. 19(16.3)(34.2%)

Copyright © Sony Financial Holdings Inc. All rights reserved.

44

Sony Assurance︓Summary Financial Statements(Underwriting Performance by Type of Policy)

Direct Premiums Written *Medical insurance is included in personal accident.

FY18.1Q

FY19.1Q

Ordinary revenues

29.7

31.8

+2.1

+7.3%

Underwriting
income

29.0

31.2

+2.1

+7.5%

Investment
income

0.6

0.6

+0.0

+0.9%

Ordinary expenses

25.9

27.9

+2.0

+8.0%

Underwriting
expenses

19.3

20.9

+1.6

+8.3%

（JPY bn）

Operating generaland administrative
expenses
Ordinary profit
Underwriting
incomeNet income

FY18.1Q

FY19.1Q

Fire（JPY mn）

54

374

MarineーーーPersonal accident

2,163

2,277

+5.3%

Voluntary automobile

26,583

27,695＋4.2%

Change

6.5

7.0

+0.4

+7.0%

3.8

3.8

+0.0

+2.4%

3.1

3.2

＋0.0

+3.0%

2.7

2.7

+0.0

+1.8%

Compulsory
automobile liability
Total

Change+582.7%ーーー

28,80230,347+5.4%

ChangeNet Premiums Written
FY18.1Q

FY19.1Q

Fire（JPY mn）

4

197

ー

Marine

ー

ー

ー
+1.0%

Personal accident

2,221

2,244

Voluntary automobile

26,524

27,621

+4.1%

300

354

+18.1%

29,05130,418+4.7%

Compulsory
automobile liability
Total

Net losses paid

（JPY bn）

Mar. 19

Jun. 19

Change from
Mar. 19

FY18.1Q

FY19.1Q

Fire

1

3

Marine1(3)ーPersonal accident

691

763

+10.5%

12,052

13,097

+8.7%

329

323

(1.6%)

13,07614,183+8.5%

Underwriting
reserves

127.8

131.9

+4.1

+3.3%

Net assets

34.7

35.1

+0.3

+1.1%

Total assets

219.6

220.0

+0.4

+0.2%

（JPY mn）

Voluntary automobile
Compulsory
automobile liability
Total

Change+96.6％

Copyright © Sony Financial Holdings Inc. All rights reserved.

45

Sony Bank︓Summary Financial Statements(Balance of Securities by Credit Rating)◆ Consolidated（JPY bn）

FY18.1Q

FY19.1Q

ChangeOrdinary revenues

10.7

11.9

+1.1

+10.7%

Ordinary profit

2.2

2.4

+0.2

+9.3%

Profit attributable toowners of the parent

1.4

1.6

+0.1

+8.9%

◆ Non-consolidated（JPY bn）

FY18.1Q

FY19.1Q

ChangeOrdinary revenues

9.7

10.7

+1.0

+10.8%

Gross operating profit

5.7

6.2

+0.4

+8.4%

Net interest income

5.5

5.9

+0.3

+6.9%

Net fees andCommissions

(0.8)

(0.6)

+0.2

ー

Net other operating
income

1.0

0.8

(0.1)

(16.4%)

General andadministrative expenses

3.7

4.1

+0.3

+9.0%

Net operating profit

1.9

2.1

+0.2

+10.6%

Ordinary profit

2.0

2.1

+0.1

+6.9%

Net income

1.4

1.5

+0.0

+7.1%

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

Mar. 19

Jun. 19◆ Balance of Securities by Credit Rating（Non-consolidated）
Change from
Mar. 19

Mar. 19

Jun. 19

AAA

296.6

321.3

+24.6

+8.3%

AA

77.3

74.4

(2.8)

(3.7%)

A

288.0

298.8

+10.7

+3.7%

BBB

24.4

23.6

(0.7)

(3.1%)（JPY bn）

Others

10.0

9.8

(0.1)

(1.3%)

Total

696.4

728.1

+31.7

+4.6%

Change from
Mar. 19

87.2

85.8

(1.4)

(1.7%)

3.9

4.0

+0.1

+2.7%

2,860.9

2,987.7+126.8+4.4%

Copyright © Sony Financial Holdings Inc. All rights reserved.

46

Sony Bank︓Operating Performance(On Managerial Accounting Basis)◆ On Managerial Accounting Basis・ Net interest income︓Increased due to an increase of interest income in investment securities and on loans in line witha growing balance of mortgage loans.
・ Net fees and commissions︓Improved due to an increase of mortgage loansʼ fees and commissions（JPY bn）
Gross operating profit

FY18.1Q

FY19.1Q

5.7

6.2＜Reference＞

Change
+0.4

+8.4％

6.2

6.4

+0.2

+3.4％

(0.7)

(0.4)

+0.2

ー

Net other operating
income*3

0.2

0.2

(0.0)

(0.5％)

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

5.4

5.9

+0.4

+8.9％

Operating expenses andother Expenses ③

3.8

4.1

+0.2

+7.3％

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

1.6

1.8

+0.2

+12.8％*1

Net interest income
Net fees andcommissions*2①②

Yield on investment■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 financing

0.93

0.23

Interest spread

1.20

1.17

■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.

Interest Spread(Managerial Accounting Basis）(0.04pt)

0.89

0.31

（%）

FY18.1Q

FY19.1Q

Note: Interest spread=(Yield on investment)-(Yield on financing)
Copyright © Sony Financial Holdings Inc. All rights reserved.

47

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