【Presentation Material】

Consolidated Financial Results
for the Fiscal Year
Ended March 31, 2020
andSony Lifeʼs Preliminary MCEV
as of March 31, 2020

Sony Financial Holdings Inc.
May 19, 2020

AGENDA
Consolidated Operating Results for the Fiscal Year Ended March 31, 2020 <FY2019>

P. 3

Forecast of Consolidated Financial Results and Dividends
for the Fiscal Year Ending March 31, 2021 <FY2020>

P. 18

Sony Lifeʼs Preliminary MCEV as of March 31, 2020

P. 20

Our Perspective on Consolidated Group ESR

P. 23

Sonyʼs Tender Offer for SFHʼs Shares Etc.

P. 25

Appendix

P. 29

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.
(Note 1) Unless otherwise indicated, in these materials figures less than the indicated unit have been truncated, while ratios and percentage changes have beenrounded. Also, a “–” is used where percentage changes exceed 1,000% and in cases where one or both comparisons are negative.
(Note 2) “Lifeplanner” is a registered trademark of Sony Life.
Copyright © Sony Financial Holdings Inc. All rights reserved.

2

Consolidated Operating Results
for the Fiscal Year Ended
March 31, 2020
<FY2019>

Management Message
 On a consolidated Group basis, both ordinary revenues and ordinary profit
increased year on year, owing to increases in ordinary revenues and ordinary profit
from all the businesses: life insurance, non-life insurance and banking businesses.
 Sony Lifeʼs new policy amount for FY2019 decreased year on year due to lower
sales of family income insurance, however new business value for FY19.4Q (3M)
increased from FY19.3Q (3M), due mainly to favorable sales of insurance products
for corporate customers.
 Our forecast for the consolidated financial results for FY2020 is undetermined sincea rational calculation is problematic at present due to the numerous uncertainties
regarding the COVID-19 pandemic. However, we will strive to enhance ourcorporate value through further expansion of our customer base by the enhanced
utilization of technologies and the establishment of a cooperative structure withSony Group.
 SFH decided to express its support to Sonyʼs tender offer, and recommends thatshareholders tender as SFH anticipates synergies will be created as a result of
becoming a wholly-owned subsidiary of Sony, which will lead to growth in corporate
value, as well as contribute to interests of shareholders.

Copyright © Sony Financial Holdings Inc. All rights reserved.

4

Highlights of Consolidated Operating Performance◆ Ordinary Revenues︓Increased 9.3% year on year, to ¥1,781.4 billion, owing to increases
in ordinary revenues from all the businesses: life insurance, non-life insurance and banking
businesses.
◆ Ordinary Profit︓Increased 19.2% year on year, to ¥111.8 billion, owing to increases in ordinary
profit from all the businesses mentioned above.
Ordinary Revenues
1,629.1+9.3%

Ordinary Profit

1,781.4
93.8＋19.2%

111.8(JPY bn)(JPY bn)

FY2018FY2019FY2018FY2019Copyright © Sony Financial Holdings Inc. All rights reserved.

5

Highlights of Operating Performance : Sony Life (Non-consolidated)◆ Ordinary Revenues︓ Increased 7.9% year on year, to ¥1,580.1 billion, due primarily to higher
insurance premium revenue, mainly from single premium insurance.
◆ Ordinary Profit︓ Increased 11.2% year on year, to ¥88.7 billion, due chiefly to a decreasein costs related to the acquisition of new policies and a rise in profit in tandem with expansionof the policy amount in force, which more than offset higher operating expenses.

Ordinary Revenues
1,464.2+7.9%

Ordinary Profit

1,580.1(JPY bn)

79.8+11.2%

88.7(JPY bn)

FY2018FY2019FY2018FY2019Copyright © Sony Financial Holdings Inc. All rights reserved.

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
for corporate customers despite a favorable sales of U.S. dollar-denominated insurance.
Number and Amount of New Policies

Annualized Premiums from New Policies（Individual life insurance + Individual annuities）（Individual life insurance + Individual annuities）

New policy amount
Number of new policies (Thousands of policies)

Annualized premiums from new policies
Of which, third-sector

609
540

+4.5%

6.15

636

87.9
(6.6％)

73.0

5.39

5.28

82.1

(12.2%)(JPY bn)(JPY tn)

FY2017FY2018FY201912.9

15.2

FY2017FY2018(15.4%)

12.9
FY2019Copyright © Sony Financial Holdings Inc. All rights reserved.

7

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)

7.56
47.2

7.84

+4.0%

Annualized Premiums from Insurance in Force（Individual life insurance + Individual annuities）
Annualized premiums from insurance in force
Of which, third-sector

8.16
848.8

+3.8%

51.4

49.5

922.7

889.3

+3.8%

(JPY tn)

191.8

197.5

Mar. 18

Mar. 19

+1.9%

201.3

(JPY bn)

Mar. 18

Mar. 19

Mar. 20

Mar. 20

Copyright © Sony Financial Holdings Inc. All rights reserved.

8

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

6.06
4.97

(1.6pt)4.46（%）

FY2017FY2018FY2019*The lapse and surrender rate shows the ratio derived by dividing the amount of lapses and surrenders, not adjusted for policy
amount decreases, increases, and reinstatements, by the policy amount in force at the beginning of the fiscal year.
Copyright © Sony Financial Holdings Inc. All rights reserved.

9

Operating Performance : Sony Life (Non-consolidated) (4)◆ Core Profit︓Remained almost flat due to an increase in provision of policy reserve forminimum guarantees for variable life insurance despite a profit rose in tandem withexpansion of the policy amount in force.
ReferenceCore Profit and Adjusted Core Profit
Core profit

Investment yield for core profit
Average assumed interest rate

Adjusted core profit+3.8%

81.3 82.4

97.2 97.4

Average Assumed Interest Rate andInvestment Yield for Core Profit

101.1
96.1

(1.1%)

2.22

2.19

2.17

1.97

1.94

1.93

FY2017FY2018FY2019(JPY bn)（%）

FY2017◆ Details of core profit(JPY bn)
Positive spread
Provision of policy reserve forminimum guarantees forvariable life insurance *1
Adjusted core profit *2

FY2018FY2019FY2017FY2018FY2019

17.7

18.2

19.3

(18.7)(18.3)(24.2)

82.4

97.4

101.1

*1 Provision of policy reserves for minimum guarantees for variable life insurance is
described as negative amount.
*2 Adjusted core profit = (Core profit) – (Positive spread) – (Provision of policy reserves
for minimum guarantees for variable life insurance)
Copyright © Sony Financial Holdings Inc. All rights reserved.

10

Operating Performance : Sony Life (Non-consolidated) (5)◆ Ordinary Profit︓Increased due to an increase in gains (losses) on hedges of variable life
insurance in addition to a factor in core profit.
◆ Difference from core profit

Core Profit and Ordinary Profit
Core profit

Ordinary profit

97.2

81.3

(JPY bn)(1.1%)

96.1

79.8

88.7

+11.2%

56.3

FY2017FY2018FY2019Core profit

81.3

97.2

96.1

Capital gains (losses)*1

(9.0)

1.6

(1.9)

Gains (losses) on hedges ofvariable life insurance*2

(8.4)

(9.9)

3.6

Provision of contingency reserve*3

(7.4)

(8.6)

(9.0)

Others

(0.1)

(0.4)

(0.1)

Ordinary profit

56.3

79.8

88.7

*1 Capital gains (losses) exclude gains or losses on hedges of variable life insurance.
*2 Gains (losses) on hedges of variable life insurance offset the impact of market
fluctuations on provision of policy reserves for minimum guarantees for variable
life insurance on page 10.
*3 Provision of contingency reserve is described as negative amount.

(Note) Regarding hedges of variable life insurance(JPY bn)

FY2017FY2018FY2019Market fluctuations resulted in the following accounting gains (losses), due todifferences between Japanese GAAP and economic value-based valuation.
Please refer to page 40 for details.

(JPY bn)
Gains (losses) of variable life insurance
related to market fluctuations

FY2017(0.2)

FY2018(0.5)

FY2019(2.0)

Copyright © Sony Financial Holdings Inc. All rights reserved.

11

Sony Life : Number of Lifeplanner Sales Employees
Number of Lifeplanner Sales Employees
（18）

5,142

5,135

5,147

5,106

5,164

5,116

5,119

5,074

5,146

＋72

（Number）

Mar. 18

Jun. 18

Sep. 18

Dec. 18

Mar. 19

Jun. 19

Sep. 19

Dec. 19

Mar. 20

Copyright © Sony Financial Holdings Inc. All rights reserved.

12

Highlights of Operating Performance : Sony Assurance◆ Ordinary Revenues : Increased 5.8% year on year, to ¥121.7 billion, due mainly to anincrease in net premiums written for mainstay automobile insurance.
◆ Ordinary Profit : Increased 17.0% year on year, to ¥8.0 billion, due mainly to a reversal ofa portion of reserves for some products that made provisions in FY2018 and in addition thatreversal of catastrophe reserves were recorded in FY2019.
Ordinary Profit

Ordinary Revenues

115.1

＋5.8%

121.7
＋17.0%

8.0

6.8(JPY bn)(JPY bn)

FY2018FY2019FY2018FY2019Copyright © Sony Financial Holdings Inc. All rights reserved.

13

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

Net Premium Written
Voluntary automobile insurance
Others108.2

Personal accident insurance

Ordinary profit

＋5.5%

6.5

11.2

10.5

10.0

119.3

113.1

Adjusted ordinary profit
＋6.9%

8.0

6.8

＋17.0%xx(JPY bn)

FY2017FY2018FY2019*Adjusted ordinary profit = Ordinary profit + Provision for catastrophe reserve(JPY bn)

FY2017FY2018FY2019(Note) Most of personal accident insurance is medical insurance.

（Reference) Provision for catastrophe reserve（JPY bn）

FY2017FY2018FY2019Provision for catastrophe reserve

3.4

3.6

3.2

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

14

Operating Performance : Sony Assurance (2)◆ Sum of Two Ratios︓
Almost flat due to a rise in E.I. loss ratio despite a decrease in net expense ratio.
Combines Ratio

Sum of Two Ratios（Net Loss ratio＋ Net Expense Ratio）（E.I. Loss Ratio ＋ Net Expense Ratio）
E.I. loss ratio

Net expense ratio

89.2

89.1

Net loss ratio

89.3

84.4

Net expense ratio

85.1+0.2pt

60.7

（%）

61.3

28.5

27.8

FY2017FY2018＋0.4pt(0.2pt)85.7＋0.6pt

61.7

55.9

57.3

＋0.8pt58.1(0.2pt)27.6

FY2019

（%）

28.5

27.8

27.6

FY2017FY2018FY2019(Note)(Note)
E.I. loss ratio = (Net losses paid + Provision for reserve for outstanding losses
Net loss ratio = (Net losses paid + Loss adjustment expenses) / Net premiums written
and claims+ Loss adjustment expenses) / Earned premiums[Earthquake insurance and compulsory automobile liability insurance are excluded.] Net expense ratio = Expenses related to underwriting / Net premiums written
Copyright © Sony Financial Holdings Inc. All rights reserved.

15

Highlights of Operating Performance : Sony Bank (Consolidated)◆ Ordinary Revenues and Ordinary Profit︓
Ordinary revenues expanded 9.2% year on year, to ¥50.2 billion, and ordinary profit was up
11.4% year on year, to ¥10.6 billion, due to increases in such income as interest on loans
in line with a growing number of newly executed mortgage loans.
Ordinary Profit

Ordinary Revenues

46.0

＋9.2%

50.2
9.5

(JPY bn)＋11.4%

10.6(JPY bn)

FY2018FY2019FY2018FY2019Copyright © Sony Financial Holdings Inc. All rights reserved.

16

Operating Performance : Sony Bank (Non-consolidated)◆ Customer Assets
・Yen Deposits︓Increased due mainly to an increase in newly accumulated funds via the increased
number of accounts.
・Foreign Currency Deposits︓ Increased due mainly to an increase in time deposit.
◆ Loans Outstanding・Expanded due to a steady increase in mortgage loans.
Loans Outstanding

Customer Assets
Yen deposits
Foreign currency deposit
Number of accounts (Millions of accounts)

30,00025,0001.35
2,343.0
123.7

20,000

404.6

+0.02

1.47
2,483.3
124.3

419.6

+109.0Investment trusts

Others1.50

2,592.3
110.4
453.2

1,979.1140

1,596.3

120

1,744.1
53.7

1,939.3

2,028.6

5,000(JPY bn)020Mar. 19

Mar. 20

1,525.5

60
40

Mar. 18

Corporate loans:¥26.8 billion,
Card loans :¥17.3 billion.

+235.070.7

801,814.7

44.2*

100

15,00010,000Mortgage loans

1,690.3

1,934.8(JPY bn)

Mar. 18

Mar. 19

Mar. 20

Copyright © Sony Financial Holdings Inc. All rights reserved.

17

Forecast of Consolidated Financial Resultsand Dividends for the Fiscal Year Ending
March 31, 2021 <FY2020>

Forecast of Consolidated Financial Results and Dividends for FY2020
 Dividends for FY2019
Dividends for FY2019 are expected to be ¥70.0 per share, an increase of ¥7.5 from the dividends of
FY2018.
 Forecast of Consolidated Financial Results for the FY2020
Due to the numerous uncertainties about how the COVID-19 pandemic will affect our operating
performance, calculating a financial forecast rationally is problematic at present, since it is currently
difficult to predict when the COVID-19 pandemic to get settled and the pace of the recovery of businessactivities and others. Accordingly, our consolidated financial forecast and dividend forecast for FY2020
are undetermined.
 Forecast of Dividends for the FY2020
As described in the “Announcement of Opinion in Support of Tender Offer for Shares, Etc. in SonyFinancial Holdings Inc. by Sony Corporation, the Controlling Shareholder, and Recommendation to
Tender Shares, Etc.” announced on May 19, 2020, SFH made a resolution at the meeting of its board of
directors held today, decided not to pay a dividend for the FY2020, subject to the successful completionof the Tender Offer.
 In response to the growing COVID-19 pandemic
SFH and its Group companies in principle refrain from conducting business face to face, out ofconsideration for the health and safety of our customers, business partners and employees. We havealso introduced teleworking and other measures to help curtail infection.
<Initiative at Sony Life>
Going forward, Sony Life plans to gradually resume face-to-face sales activities, by taking into
consideration of the relaxation of restricted movement request and pace of the resumption of economic
activities. In addition, Sony Life plans to enhance its response to the situation, by gradually increasing its
use of telephone- and video-based consulting tools.
19
Copyright © Sony Financial Holdings Inc. All rights reserved.

Sony Lifeʼs Preliminary MCEV
as of March 31, 2020
Please keep in mind that the validity of these calculations has not been verified by outside specialists as of March 31, 2020.
The calculation of MCEV as of March 31, 2020, in accordance with the MCEV principles and verified by outside specialists,
is scheduled to be announced on June 9, 2020.
A part of the calculations of MCEV adopted simplified method for that as of December 31, 2019.

Sony Lifeʼs MCEV
◆ Reasons for Changes in MCEV
・MCEV as of March 31, 2020 increased ¥20.5 billion from December 31, 2019, due mainly to an
acquisition of new policies◆ New Business Value / New Business Margin
・New business value for FY19.4Q (3M) increased ¥17.8 billion from FY19.3Q (3M), due mainly tofavorable sales of insurance products for corporate customers.
・New business margin for FY19.4Q (3M) was down 1.2pt from FY19.3Q (3M), due mainly to a decline
in U.S. dollar interest rates.
ChangefromMar. 19

ChangefromDec. 19

Mar. 19

Dec. 19

Mar. 20

1,720.2

1,692.9

1,713.5

(6.7)

+20.5

Adjusted net worth

2,195.7

2,372.2

2,565.8+370.0+193.5

Value of existing business(475.5)(679.3)(862.3)(376.8)(172.9)FY18.4Q(3M)

FY19.1Q(3M)

FY19.2Q(3M)（JPY bn）

MCEV（JPY bn）

FY19.3Q(3M)

FY19.4Q(3M)

FY2019(12M)

New business value

23.1

17.0

14.8

17.1

17.8

66.9

New business margin

5.0%

5.4%

3.8％

5.1%

3.9%

4.5%

Note: Calculated MCEV as of December 31, 2019 onward by using mainly updated economic assumptions and lapse and surrender rate from March 31, 2019.
*Please refer to page 46-49 for trend on bond yields and yield curves.

Copyright © Sony Financial Holdings Inc. All rights reserved.

21

Sony Lifeʼs MCEV: Breakdown of MCEV for FY2019 (12M)

Adjusted Profit
+82.6
+66.9
1,720.2

New business
value

MCEV
as of Mar. 19

Dividend
payments toshareholder(JPY bn)

MCEV
as of Mar. 19(after dividends paid)(57.2)

1,713.5
Assumptionchanges

1,688.0

Expected existing
business contribution(32.2)+15.7

MCEV
as of Mar. 20

Note: Details on assumption changes : Insurance-related assumption changes:+¥8.5 billion,
economic variances changes (included interest rate fluctuation): ¥(65.8) billion.

Copyright © Sony Financial Holdings Inc. All rights reserved.

22

Consolidated Group ESROur Perspective on Consolidated Group ESR
 Consolidated Group ESR︓

Consolidated Group ESR is an indicator of capital sufficiency with respect to the Groupʼs risk
amount. Currently the target level of consolidated Group ESR is between 180% and 250% fromthe viewpoint of ERM to ensure financial soundness and capital efficiency.
Invest in growth, take on additional risk
and expand shareholder returns

(%)

250
 Consider investing in growth, taking on
additional risk and adopting a flexible
response to shareholder returns

Comfortablezone

Consolidated Group ESR
Approx. 220%

180




Recover capital levels by reducing risk
and retaining profit

Consider shoring up capital, review
shareholder returns

100(Note 1) We use consolidated Group ESR (an internal management indicator) to assist in making comprehensive management decisions. The indicator refers to thecalculation methods used for European Solvency II and ICS, with some simplification. No third-party verification is conducted with respect to the calculation
process or the appropriateness of its results.
(Note 2) Please refer to page 44 for Sony Lifeʼs ESR.
Copyright © Sony Financial Holdings Inc. All rights reserved.

24Sonyʼs Tender Offer for
SFHʼs Shares Etc.

Sonyʼs Tender Offer for SFHʼs Shares Etc.
Sony, the controlling shareholder of Sony Financial Holdings (“SFH”), announced on May 19 thetender offer for SFH shares etc.
 Tender offer price︓2,600 yen per common share, and 259,900 yen per stock acquisition right Premium on the closing price of the SFHʼs share︓
The immediately preceding business day︓

25.97%The simple average closing price for the one-month period︓

31.58%The simple average closing price for the three-month period ︓

34.09%The simple average closing price for the six-month period ︓

14.94%

 Tender offer period︓Wednesday, May 20, 2020 〜 Monday, July 13, 2020

39 business days

 Minimum threshold of purchase︓2/3 of total voting rights (following dilution) (7,070,000 shares)
Maximum threshold︓N/A
 SFH anticipates synergies will be created as a result of becoming a wholly-owned subsidiary of Sony,which will lead to growth in corporate value, as well as contribute to interests of shareholders. For
these reasons, SFH decided to express its support to the tender offer, and recommends thatshareholders tender.
 Announcement of Opinion in Support of Tender Offer for Shares, Etc. in Sony Financial Holdings Inc. by Sony Corporation, the Controlling
Shareholder, and Recommendation to Tender Shares, Etc.
https://www.sonyfh.co.jp/en/news/article/200519_01.pdf
Copyright © Sony Financial Holdings Inc. All rights reserved.

26

Reasons for Expressing Support to This Tender Offer andRecommending That Shareholders Tender
The decision was made after discussing and examining the appropriateness of theterms and conditions (including the tender offer price) of the transaction, as well as
strategic rationales of the transaction, anticipated synergies, etc. as described below:
 In order to achieve sustainable growth, it is necessary to achieve organic growth of theexisting businesses and create new highly-value added financial services.
 Under the current conditions of the falling birthrate and aging population, changes in
economic structure, and technologies symbolized by fintech, a deep involvement andcontribution based on the experience of the Sony Group as a global technology
company can be expected.
 By becoming a wholly-owned subsidiary of Sony, SFH will be able to implement bold
management measures including further integration and reorganization of the service
development system and corporate functions across both company groups in a promptand flexible manner, as well as promptly develop financial services in response tochanging business environment and diversified customer needs.
 Leverage Sonyʼs R&D functions, artificial intelligence (AI) technologies and brandpower more than ever, to promote and accelerate the development of new products
and new services.
 By sharing part of the functions with Sony Group, SFH is expected to reduce marketingcosts and corporate costs.
Copyright © Sony Financial Holdings Inc. All rights reserved.

27

Regarding the Measures to Ensure the Fairness of the Tender OfferThis decision was made following careful discussion and evaluation of the rationale of the transaction,
the appropriateness of the transaction terms and conditions, as well as the fairness of the procedures,
following the implementation of the below measures to ensure fairness, including the establishment ofa special committee consisting of independent outside directors, from the viewpoint of securing theinterests of the general shareholders of SFH, and based on the “Fair M&A Guidelines” by the Ministry of
Economy, Trade and Industry (METI).
The unanimous opinion that this transaction is not disadvantageous to the minority shareholders of
SFH was obtained in the Special Committee held today.
Measures to ensure fairness

1 Establishment of an Independent Special Committee at SFH, and the substantial involvement of the Special Committee
to the negotiations
2 Procurement by the Special Committee of advice from an Independent Legal Advisor
3 Procurement by the Special Committee of the Valuation Report (on the valuation of SFHʼs common shares)
and the Fairness Opinion from an Independent Financial Advisor and Third-Party Valuation Institution
4 Procurement by SFH of an opinion from an independent legal advisor
5 Procurement by SFH of an Valuation Report (on the valuation of SFHʼs common shares) and Fairness Opinion from an
independent financial advisor and a third-party valuation institution
6 Establishment of an Independent Evaluation Framework at SFH
7 Unanimous approval of all non-interested directors and opinion of all non-interested statutory auditors that they had noobjection at SFH
8 No transaction protection clause
9 Measures to Ensure an opportunity for SFHʼs Shareholders and the holders of the Stock Acquisition Rights toappropriately decide whether to tender their Companyʼs Common Shares and the Stock Acquisition Rights in the Tender
Offer (such as setting a relatively long tender offer period of 39 business days, etc.)

Copyright © Sony Financial Holdings Inc. All rights reserved.

28

◆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 Profit andConsolidated Adjusted Capital◆ Adjusted capital◆ Adjusted profit
Sony Financial Group（consolidated）（JPY bn）
Consolidated adjusted profit
Sony Life(non-consolidated)（JPY bn）

FY2018Sony Financial Group（consolidated）

FY2019120.4

FY201897.9（JPY bn）

New business value *

91.3

66.9

①MCEV as of the beginning of
the fiscal year

Expected existing business
contribution *

15.0

15.7

②Dividends paid

Adjusted profit

106.4

82.6

Sony Assurance（JPY bn）

FY2018FY2019Net income

4.9

5.8

Provision amount forcatastrophe reserve (after tax)

2.6

2.3

Provision amount for reservefor price fluctuations (after tax)

0.0

0.0

Adjusted profit

7.6

8.1

Sony Bank(consolidated)（JPY bn）

Profit attributable to ownersof the parent

FY2018FY20196.3

FY20191,801.8
FY2018

1,846.4
FY20191,633.1

1,720.2

26.2

32.2

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

1,713.5

Adjusted capital（①－②＋③）/２

1,663.5

1,700.8

Sony Assurance（JPY bn）

FY2018FY2019①Net assets

34.7

37.7

②Catastrophe reserve

17.7

20.0

③Reserve for price fluctuations

0.1

0.1

Adjusted capital（The averageamount of ①＋②＋③）

50.5

55.3

Sony Bank(consolidated)

7.0

FY2018

Consolidated adjusted profit
Sony Life(non-consolidated)

FY2019（JPY bn）（JPY bn）

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

87.6

FY201990.2* Please keep in mind that the validity of these calculations has not been verified by outside specialists for the figures for FY2019.
Copyright © Sony Financial Holdings Inc. All rights reserved.

30

Detail of Consolidated Adjusted ROE

FY2018(12M)

FY2019(12M)

Consolidated Adjusted ROE

6.7%

5.3%

(Sony Life) Core ROEV

6.4%

4.9%

(Sony Assurance) Adjusted ROE

15.2％

14.7%

(Sony Bank) ROE

7.3%

7.8%

Copyright © Sony Financial Holdings Inc. All rights reserved.

31

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 ②
amount for reserve for pricefluctuations during the fiscal
year, in each case after taxes

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

＋

①

④

＋

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

32

Update of Major KPIs

Sony Life
Policy Amount in Force *1

47.2

49.5

51.4

（JPY tn）
Mar. 18

Sony Assurance
Direct Premiums Written

107.0

112.1

Mar. 20

Retail Balance*2

119.1
3.9

（JPY bn）
Mar. 19

Sony Bank

4.2

4.5

（JPY tn）
FY2017FY2018FY2019Mar. 18

Mar. 19

Mar. 20*1 Individual Life Insurance + Individual Annuities*2 Sum of deposits, investment trusts, financial products intermediary services, mediated discretionary investment contracts and personal loans

Copyright © Sony Financial Holdings Inc. All rights reserved.

33

Financial Soundness

Mar. 19
Sony Life (non-consolidated)
Solvency margin ratio

Change from
Mar. 19

Mar. 20

2,590.5%

2,476.3%(114.2pt)

Sony Assurance
Solvency margin ratio

813.0%

872.3％+59.3pt

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

9.58％

8.85％

(0.73pt)（%）

Sony Bank (non-consolidated）
Non-performing assets ratio（based on Financial Reconstruction Law）*

Mar. 190.12%

Change from
Mar. 19

Mar. 200.10%(0.02pt)*Non-performing loans (loans based on the Financial Reconstruction Act) /Total loan exposure(Note) Ratios less than the indicated unit have been truncated.

Copyright © Sony Financial Holdings Inc. All rights reserved.

34

Results of Cross-selling Sony Bankʼs Mortgage Loans through Sony Life
Sony Life accounts for 10% of the amount of new mortgage loans for FY2019
Sony Life accounts for 17% of the balance of mortgage loans as of March 31, 2020
※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 FY2019※Sony Life started handling automobile insurance in May 2001.

Copyright © Sony Financial Holdings Inc. All rights reserved.

35

Sony Lifeʼs Product Portfolio(Annualized Premiums from New Policies by Product)

FY2018 (12M)¥87.9 billion

FY2019（12M）¥82.1 billion

Yen whole
life 3%

Savings typeproducts
27%

U.S. dollardenominatedwhole life
13%
U.S. dollar-denominatedsingle-premium whole
life insurance 7%

Protection-type（term-life）
50％(Note) Savings type products : Endowment, annuities, and educational endowment insurances

Savings typeproducts
40%

U.S. dollardenominatedwhole life
16%
U.S. dollar-denominatedsingle-premium whole
life insurance 15%

Protection-type（term-life）
26％

Copyright © Sony Financial Holdings Inc. All rights reserved.

36

Sony Lifeʼs Asset Management(Purchase Securities in the General Account)

FY2018 (12M)

FY2019（12M）
Japanesestocks0.1%

Japanesestocks0.2%

JGBs

Foreign bonds
23.5%

39.5%
Foreign bonds

Japanese corporate
bonds
12.7%

JGBs
63.6%

50.5%

社債
25.9%Japanese corporate bonds
9.9%(Note 1) Japanese corporate bonds include FILP agency bonds and Government-guaranteed bonds.
(Note 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.

37

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

Mar. 20

Amount%Amount%Japanese bonds(including JGBs)

7,745.3

85.3%

8,364.5

84.4%

Japanese stocks

28.6

0.3%

28.0

0.3%

Foreign bonds

542.1

6.0%

966.9

9.8%

Foreign stocks

22.5

0.2%

28.6

0.3%

Money held in trust

269.3

3.0%

0.0

0.0%

Policy loans

198.3

2.2%

208.0

2.1%

Real estate*

90.8

1.0%

92.5

0.9%

Cash and call loans

61.9

0.7%

79.8

0.8%

Others

120.2

1.3%

146.2

1.5%

Total

9,079.4

100.0%

9,914.9

100.0%（JPY bn）◆ Yen Bond duration
Mar. 18 : 21.4 years
Mar. 19 : 21.8 years
Mar. 20 : 21.8 years◆ The holding ratio on the real status
of Japanese bonds including thoseinvested in money held in trust in thegeneral account :Mar. 18 : 89.5%
Mar. 19 : 88.3%
Mar. 20 : 84.4%(Note) Real estate is the total of land, buildings, and construction in progress.
Copyright © Sony Financial Holdings Inc. All rights reserved.

38

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

FY2018FY2019Change00＋91.4%

Japanese bonds(including JGBs)

129,930

133,450＋2.7%

Japanese stocks

556

319

(42.6%)

Foreign securities

19,90630,660＋54.0%

340

270(20.4%)

Loans

6,828

7,049

＋3.2%

Real estate

8,831

9,710

＋9.9%

543

350

(35.4%)

166,937

181,811＋8.9%

Cash and deposits

Other securities

OthersTotal

Copyright © Sony Financial Holdings Inc. All rights reserved.

39

Sony Lifeʼs Capital Gains (Losses)
FY2018FY20192,784.7

1,274.5

Losses on trading securities, net

14.4

－

Losses on sale of securities…(3)

3.4

5.0

402.6

631.6

1,392.5－

Losses on hedges of variable life
insurance…(1)

998.3

－

Losses on hedges of available-for-salesecurities…(2)(24.6)－

Losses on U.S. dollar-denominatedinsurance (foreign exchange losses)…(5)

407.2

－

－

634.5

Losses on U.S. dollar-denominatedinsurance…(5)

－

657.1

Losses on hedges of variable life
insurance…(1)－(20.0)

971.6

3.2

971.6

－

（JPY mn）
Capital losses

Losses on valuation of securities…(4)Losses on derivatives, net

Foreign exchange losses, net

Other capital losses
Losses on U.S. dollar-denominatedinsurance（the provision of policy reserves
for foreign exchange fluctuations)…(5)◆ Capital Gains (Losses) on Main Items, Net Amounts（JPY mn）(1) Gains (losses）on hedges of variable life insurance

FY2018(998.3)(2) Gains (losses）on hedges of available-for-sale securities

24.6(3) Gains (losses) on sale of securities

607.2(4) Losses on valuation of securities(402.6)(5) Gains (losses) on U.S. dollar-denominated insurance(45.7)FY2018FY20191,956.2

1,450.7

Gains on trading securities, net

－

14.9

Gains on sale of securities…(3)

610.7

363.7

－

409.8

Gains on hedges of variable life insurance…(1)

－

347.4

Gains on hedges of available-for-sale securities…(2)

－

63.6

The figures of gains (losses) on trading securities, net－(11.8)

Gains on U.S. dollar-denominated insurance (foreignexchange losses)…(5)－9.3

1,345.5－

1,333.1

－

－

662.2

－

662.2

(828.4)

176.2（JPY mn）
Capital gains

Gains on derivatives, net

Foreign exchange gains, net
Gains on U.S. dollar- denominated insurance(foreign exchange gains)…(5)Other capital gains
Gains on U.S. dollar-denominated insurance（thereversal of policy reserves for foreign exchange
fluctuations)…(5)Net capital gains (losses)(Note 1) The figures of gains (losses) on trading securities, net, gains (losses) on derivatives
and foreign exchange gains (losses), net were recorded after offsetting gains andlosses of each item.
（Note 2）Sony Life increased its hedge ratio for variable life insurance and exchange fluctuation
risk related to U.S. dollar-denominated insurance from FY2019 with a greater
emphasis on suppressing capital fluctuations based on economic value, which are more
FY2019suitable for valuing the growth of the life insurance business. However, assessment of
the policy reserve and others differs between Japanese GAAP and economic valuebased valuation, which makes Japanese GAAP accounting profits more susceptible to367.4
market conditions.
・Pleaserefer page 11 for the relationship between the (1) Gains (Losses）on hedges of
63.6
variable life insurance and fluctuation of liabilities, which are the hedged items.
・(5) Gains (losses) on U.S. dollar-denominated insurance under “Capital Gains (Losses)
358.6
on Main Items, Net Amounts” are the net amount after offsetting net gains (losses) onhedges exchange fluctuation risk related to U.S. dollar-denominated insurance and(631.6)fluctuation of liabilities which are the hedged items.

14.4

Copyright © Sony Financial Holdings Inc. All rights reserved.

40

Sony Lifeʼs Quarterly Trend on New Policy Amount

1,842.4
1,674.7
1,485.0 1,435.5
1,115.8 1,114.8

1,214.7

1,555.1

1,570.7
1,219.1

1,317.2 1,291.7（JPY bn）

0.0
FY17.1Q FY17.2Q FY17.3Q FY17.4Q FY18.1Q FY18.2Q FY18.3Q FY18.4Q FY19.1Q FY19.2Q FY19.3Q FY19.4Q(Note) Individual Life Insurance + Individual Annuities

Copyright © Sony Financial Holdings Inc. All rights reserved.

41

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

Of which, third-sector

30.9
24.9
19.5
16.1

（JPY bn）

3.1

21.1

16.2

2.8

3.3

3.6

18.7

3.3

19.2

18.9

3.9

3.8

21.1
18.5

17.5

4.0

3.1

3.1

3.1

3.5

FY17.1Q FY17.2Q FY17.3Q FY17.4Q FY18.1Q FY18.2Q FY18.3Q FY18.4Q FY19.1Q FY19.2Q FY19.3Q FY19.4Q(Note) Individual Life Insurance + Individual Annuities

Copyright © Sony Financial Holdings Inc. All rights reserved.

42

Sony Lifeʼs Quarterly Trend on New Business Value

19.8
17.1

21.1

21.9

22.6

23.6

23.1

17.1

17.0

17.8

14.8
12.2

（JPY bn）

FY17.1Q FY17.2Q FY17.3Q FY17.4Q FY18.1Q FY18.2Q FY18.3Q FY18.4Q FY19.1Q FY19.2Q FY19.3Q FY19.4Q(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.

43

Sony Lifeʼs ESRThe risk amount based on economic value as of March 31, 2020 was ¥805.2 billion, up ¥45.1 billion from
December 31, 2019, resulting mainly from updating interest rate risk coefficients.
ESR as of March 31, 2020 was 216%, down 9pt from December 31, 2019 due mainly to an increase inrisk amount based on economic value.
（JPY bn）

Mar. 19

Dec. 19

Mar. 20

Change from
Mar. 19

Change from
Dec. 19

Insurance risk

547.3

587.6

607.6

+60.2

+20.0

Market-related risk

332.5

292.1

334.9

+2.3

+42.7

202.1

155.1

178.5

(23.5)+23.4

Operational risk

33.4

40.2

40.3

+6.9

+0.1

Counter party risk

3.0

4.0

3.8

+0.7

(0.1)

(174.0)(163.8)(181.5)(7.5)(17.7)

742.3

760.1

805.2

+62.8

+45.1

Change from
Mar. 19

Change from
Dec. 19

Of which, interest rate risk

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

MCEV + Frictional costs
ESR

Mar. 19

Dec. 19

Mar. 20

1,743.7

1,717.4

1,743.3

(0.4)

+25.9

235%

226%

216%

(18pt)(9pt)(Note 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.
(Note 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.
(Note 3) Risk amount excluding the variance effect within market-related risk.
(Note 4) ESR=(MCEV + Frictional costs) / Risk amount based on economic value.
(Note 5) The interest rate risk coefficient has been updated by taking into account of the deepening of negative interest rates in major countries.
Copyright © Sony Financial Holdings Inc. All rights reserved.

44

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

Number and Amount of New Policies*1

Number and Amount of Policies in Force*2

New policy amount

Policy amount in force

Number of new policies (Thousands of policies)

Number of policies in force (Thousands of policies)

50.2
42.6

10.6

7.8

28.1

520.6

522.7

531.9

92.5

94.5

99.3

Mar. 18

Mar. 19

Mar. 20

5.4（JPY bn）（JPY bn）

FY2017FY2018FY2019*1 Amounts for FY2017 are individual annuities while amounts for FY2018
and FY2019 are total of individual insurance and individual annuities.

◆Net income (losses) for Sony Life With and SA Reinsurance（JPY bn）

Sony Life With Insurance
SA Reinsurance

FY2018FY2019*2 Amounts for as of Mar. 18 are individual annuities while amounts forMar. 19 and Mar. 20 are total of individual insurance and individual
annuities

Change

(3.9)

(1.2)

＋2.7

0.3

8.2

＋7.8

(Note) On Jan. 29, 2020, Sony Life With Insurance (former AEGON Sony Life Insurance) and SA Reinsurance converted into wholly owned subsidiaryʼs of SFH and Sony Life.
Furthermore, AEGON Sony Life Insurance changed its name to Sony Life With Insurance on Apr.1, 2020.
For FY2018, 50% of the net income (losses) was recognized as investment profit (losses) on equity method in the SFHʼs consolidated net income.
SA Reinsurance prepares its financial statements in accordance with U.S. GAAP.
Copyright © Sony Financial Holdings Inc. All rights reserved.

45

Trend on JGB Yields (Par rate)
10 years
0.70%

20 years
30 years
40 years

0.50%

0.30%

0.10%

(0.10%)△0.10%△0.30%(0.30%)

Mar. 19 Apr. 19 May 19 Jun. 19 Jul. 19 Aug. 19 Sep. 19 Oct. 19 Nov. 19 Dec. 19 Jan. 20 Feb. 20 Mar. 20

Mar. 19

Apr. 19

May 19Jun. 19

Jul. 19

Aug. 19 Sep. 19

Oct. 19

Nov. 19 Dec. 19

Jan. 20

Feb. 20

Mar. 20

10 years (0.08%) (0.05%) (0.09%) (0.16%) (0.16%) (0.28%) (0.21%) (0.14%) (0.08%) (0.02%) (0.06%) (0.15%)

0.03%

20 years

0.34%

0.37%

0.30%

0.23%

0.20%

0.05%

0.20%

0.23%

0.26%

0.28%

0.23%

0.16%

0.31%

30 years

0.51%

0.56%

0.46%

0.36%

0.35%

0.15%

0.36%

0.39%

0.41%

0.41%

0.37%

0.29%

0.42%

40 years

0.58%

0.63%

0.50%

0.41%

0.40%

0.17%

0.43%

0.43%

0.45%

0.44%

0.40%

0.32%

0.44%

Copyright © Sony Financial Holdings Inc. All rights reserved.

46

Trend on Risk-free Rate (Japanese yen/Par rate)

1.50%
1.30%
1.10%

Convergence
period: 20 year

Mar. 19
Dec. 19
Mar. 20

0.90%
0.70%
0.50%
0.30%
0.10%
(0.10%)
Last liquid point:
40 year(0.30%)
1 year

10

20

30

40

50

60

70

80

years

years

years

years

years

years

years

years

*For above risk-free rate, we employ the Smith-Wilson method for extrapolation so that the 60-year forward rate will coverage on the UFR (3.5%).
Copyright © Sony Financial Holdings Inc. All rights reserved.

47

Trend on U.S. Dollar Bonds Yields (Par rate)
10 years
20 years

2.90%

30 years

2.50%
2.10%
1.70%
1.30%
0.90%
0.50%
Mar. 19 Apr. 19 May 19 Jun. 19 Jul. 19 Aug. 19 Sep. 19 Oct. 19 Nov. 19 Dec. 19 Jan. 20 Feb. 20 Mar. 20
Mar. 19 Apr. 19

May 19Jun. 19

Jul. 19

Aug. 19 Sep. 19 Oct. 19 Nov. 19 Dec. 19 Jan. 20

Feb. 20 Mar. 20

10 years

2.41%

2.50%

2.13%

2.01%

2.02%

1.50%

1.67%

1.69%

1.78%

1.92%

1.51%

1.15%

0.67%

20 years

2.63%

2.74%

2.38%

2.31%

2.30%

1.77%

1.92%

1.99%

2.07%

2.25%

1.82%

1.47%

1.05%

30 years

2.82%

2.93%

2.57%

2.53%

2.53%

1.96%

2.11%

2.18%

2.21%

2.39%

2.00%

1.68%

1.32%

Copyright © Sony Financial Holdings Inc. All rights reserved.

48

Trend on Risk-free Rate (U.S. Dollar /Par rate)
3.55%

Convergence
period: 30 year

Mar. 19
Dec. 19

3.05%

Mar. 20

2.55%

2.05%

1.55%

1.05%

0.55%

0.05%

Last liquid point:
30 year1 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.

49

Consolidated︓Summary Financial Statements
FY2018FY20191,464.3

1,604.7+140.3

+9.6%

78.2

94.3

+16.1

+20.7%

115.1

121.7

+6.6

+5.8%

6.8

8.0

+1.1

+17.0%

46.0

50.2

+4.2

+9.2%

Ordinary profit

9.5

10.6

+1.0

+11.4%

Ordinary revenues

3.6

4.6

＋0.９

+26.3%

(0.8)

(1.2)

(0.4)

ー

1,629.1

1,781.4＋152.2+9.3%

Ordinary profit

93.8

111.8

＋18.0

＋19.2%

Profit attributableto owners of theparent

62.0

74.4

+12.3

＋19.9％（JPY bn）
Life insurance
business
Non-life
insurancebusiness
Bankingbusiness
Intersegment
adjustments*

Ordinary revenues
Ordinary profit
Ordinary revenues
Ordinary profit
Ordinary revenues

Ordinary profit
Ordinary revenues

Consolidated

Change*“Intersegment adjustments” is from SFH, the nursing care business, and the venture capital business.
Sony Financial Ventures Inc. is included in the scope of consolidation from FY18.2Q, SFV・GB L.P. is included in the scope of
consolidation from the FY18.4Q, SmartLink Network Europe B.V. is included in the scope of consolidation from FY19.2Q, andSony Life With Insurance (former AEGON Sony Life Insurance) and SA Reinsurance are included in the scope of consolidationfrom FY19.4Q respectively.
(Note) Comprehensive income : FY2018: ¥ 57.4 billion, FY2019: ¥62.1 billion（JPY bn）

Consolidated

Net assets
Total assets

Mar. 19

Mar. 20

Change from Mar. 19

656.8

691.9

+35.1

+5.3%

13,468.2

15,125.7+1,657.4+12.3%

Copyright © Sony Financial Holdings Inc. All rights reserved.

50

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

FY2018FY20191,464.2

1,580.1+115.8+7.9%

1,136.1

1,330.8+194.7+17.1%

Investment income

278.9

193.7

(85.2)(30.6%)

Interest income
and dividends

166.9

181.8

+14.8

+8.9%

Foreign exchange
gains, net

13.4

ー

(13.4)(100.0%)Gains on separate
accounts, net

87.9

ー

(87.9)(100.0％)1,384.4

1,491.3＋106.9＋7.7%

Insurance claims andother payments

457.2

511.9

＋54.6

＋12.0%

Provision for policy
reserves and others

704.7

694.2

(10.5)(1.5%)

Investment expenses

24.6

68.1

+43.4

+176.5%Losses on valuationof securities

4.0

6.3

+2.2

+56.9%

Losses onderivatives, net

13.9

ー

(13.9)(100.0%)Foreign exchange
losses, net

ー

6.3

+6.3

ー

Losses on separate
accounts, net

ー

45.9

+45.9

ー

146.9

156.4

+9.4

＋6.4%

Ordinary profit

79.8

88.7

+8.9

+11.2％Net income

49.6

56.7

＋7.1

+14.4%

Ordinary revenues
Income from insurance
premiums

Ordinary expenses

Operating expenses

ChangeMar. 19

Dec. 19

Change from Mar. 19

Securities

9,523.8

10,629.9+1,106.0＋11.6%

Policy reserves

9,268.4

9,959.8＋691.4

＋7.5%

513.9

539.5

＋25.6

＋5.0%

122.7

123.8

+1.1

+0.9%

10,380.1

11,２37.1+856.9+8.3%

1,300.7

1,323.9

+23.2

＋1.8%

Net assets
Net unrealized
gains on othersecurities
Total assets
Separate account
Assets *（JPY bn）
Gains from investment,net (General account)

FY2018166.3

FY2019171.5

Change+5.2+3.1%*A portion of surplus investment funds are jointly invested,which amounted to ¥1.7 billion as of March 31, 2020.

Copyright © Sony Financial Holdings Inc. All rights reserved.

51

Sony Assurance︓Summary Financial Statements(Underwriting Performance by Type of Policy)
Direct Premiums Written *Medical insurance is included in personal accident.

FY2018FY2019Ordinary revenues

115.1

121.7

＋6.6

＋5.8%

Fire

Underwriting
income

113.1

119.7

＋6.5

＋5.8%

MarineInvestment
income

1.8

1.9

＋0.0

+4.2%

Voluntary automobile

Ordinary expenses

108.2

113.6

＋5.4

＋5.0%

Compulsory automobile liability

Underwriting
expenses

78.4

82.3

＋3.9

+5.0%

Operating, generaland administrative
expenses

29.7

31.2

＋1.5

+5.1%

（JPY bn）

Ordinary profit
Underwriting
incomeNet income（JPY bn）

Change（JPY mn）

Personal accident

Total（JPY mn）

616

2,275

+269.2%

－

－

ー

8,823

9,253

+4.9%

102,758

107,606

+4.7%

－

－

ー

112,198

119,135+6.2%

FY2018FY2019Change265

1,284＋384.6

(0)

0

ー

8,872

9,044

＋1.9%

102,458

107,311+4.7%

Compulsory automobile liability

1,505

1,712

+13.8%

Total

113,101

119,352+5.5%

FY2018FY2019＋1.1＋17.0%

Marine

5.0

6.1

+1.1

+22.1%

Personal accident

4.9

5.8

+0.8

+16.2%

Change from
Mar. 19

ChangeFire

8.0

Mar. 20

FY2019Net Premiums Written

6.8

Mar. 19

FY2018Voluntary automobile

Net losses paid

Underwriting reserves

127.8

139.1

+11.3

＋8.9%

Net assets

34.7

37.7

＋2.9

+8.6%

Fire

15

205

ー

Total assets

219.6

234.8

+15.2

+6.9%

Marine10(3)ーPersonal accident

3,009

3,249

+8.0%

Voluntary automobile

52,22355,518+6.3%

Compulsory automobile liability

1,350

1,346

(0.3%)

Total

56,60860,315+6.5%（JPY mn）

ChangeCopyright © Sony Financial Holdings Inc. All rights reserved.

52

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

FY2018FY2019ChangeOrdinary revenues

46.0

50.2

+4.2

+9.2%

Ordinary profit

9.5

10.6

＋1.0

+11.4%

Profit attributable toowners of the parent

6.3

7.0

＋0.7

＋11.4%◆ Non-consolidated（JPY bn）
Ordinary revenues

FY201841.7

FY201945.3

Change

＋3.6

+8.8%

24.5

27.1

＋2.5

＋10.6%Net interest income

23.3

24.7

＋1.3

＋6.0%

Net fees andCommissions

(2.2)

0.9

＋1.2

－

Net other operating
income

3.4

3.3

(0.0)

(1.5%)

General andadministrative expenses

15.9

17.7

＋1.8

＋11.8%Net operating profit

8.5

9.3

+0.7

+9.0%

Ordinary profit

8.6

9.5

+0.8

+10.2%Net income

6.0

6.6

＋0,6

+10.2%

Gross operating profit（JPY bn）
Net assets
Net unrealized gains
on other securities, netof taxes
Total assets

Mar. 19

Mar. 20◆ Balance of Securities by Credit Rating（Non-consolidated）
Change from
Mar. 19

Mar. 19

Mar 20

AAA

296.6

308.1

+11.4

+3.9%

AA

77.3

67.4

(9.9)

(12.8%)

A

288.0

277.3

(10.6)(3.7％)

BBB

24.4

28.9

＋4.5

＋18.8％

Others

10.0

21.4

＋11.4

+113.9%

Total

696.4

703.3

＋6.8

+1.0%

（JPY bn）

Change from
Mar. 19

87.2

77.3

(9.9)

(11.4％)

3.9(10.2)(14.2)

ー

2,860.9

3,079.4＋218.5+7.6%

Copyright © Sony Financial Holdings Inc. All rights reserved.

53

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 onloans in line with a 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

FY2018FY2019Change

24.4

27.0

+2.5

+10.6%Net interest income*1 ①

25.5

26.4

+0.8

＋3.4％

Net fees andcommissions*2

(1.7)

(0.5)

+1.2

－

Net other operating
income*3

0.7

1.2

+0.5

+72.0%

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

23.7

25.8

+2.0

+8.8%

Operating expenses andother Expenses ③

15.9

17.8

+1.8

+11.5%Net operating profit(core profit) ＝(A)－③

7.8

8.0

+0.2

+3.1%

②

＜Reference＞
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

1.20
0.93

■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)
Interest spread

1.16(0.04pt)

0.89

0.27

0.28

FY2018FY2019（%）

Note: Interest spread=(Yield on investment)-(Yield on financing)

Copyright © Sony Financial Holdings Inc. All rights reserved.

54

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