May 18, 2012
Sony Financial Holdings Inc.

Summary Information on Sony Assurance’s Financial Results
for the Year Ended March 31, 2012
<Contents>
1. Balance Sheets

P.2

2. Statements of Income

P.4

3. Financial Summary (Year-on-Year Comparison)

P.5

4. Premiums and Losses Paid by Type of Policy

P.7

5. Risk-Monitored Loans

P.7

6. Securities

P.8

7. Solvency Margin Ratio (Non-consolidated)

P.9

1

1. Balance Sheets(Millions of yen)
As ofMarch 31, 2012

As ofMarch 31, 2011
Assets:Cash and deposits

3,859

5,161

00Deposits

3,859

5,161

Securities

80,60884,474

Japanese government bonds

44,61957,709Japanese municipal bonds

19,99013,585

Japanese corporate bonds

12,253

11,207

Japanese Stock-600

Foreign securities

897

897

Other securities

2,848

474

Tangible fixed assets

384

434

Buildings

227

255

Other tangible fixed assets

156

178

3,632

6,806

3,056

3,179

569

3,622

6

4

14,947

16,743

Accrued premiums

1,078

1,156

Due from reinsurers

23

13

Due from foreign reinsurers-0

10,213

11,302

Accrued income

153

151

Deposits

416

410

Deposits for earthquake insurance

25

0

3,036

3,708

5,9494,993

109,382

118,612Cash

Intangible fixed assets
Software
Software in progress
Other intangible fixed assets
Other assets

Accounts receivable

Suspense payments
Deferred tax assets
Total Assets2

(Millions of yen)
As ofMarch 31, 2012

As ofMarch 31, 2011
Liabilities:
Underwriting reserves

84,97891,564

Reserve for outstanding losses

20,90424,192

Underwriting reserves

64,07367,371

6,212

7,512

107

59

Due to foreign reinsurers

85

Income taxes payable

789

316

Deposits received

810

Accounts payable

2,147

3,012

Suspense receipt

3,152

4,108

Reserve for employees’ retirement benefits

644

717

Reserve for directors’ retirement benefits

3440

Reserve for employees’ bonuses

695

707

Reserve for price fluctuations and others

43

61

43

61

92,609100,603

20,00020,000Capital reserve

20,00020,000Total capital surplus

20,00020,000

Other retained deficits(23,246)(21,946)

Unappropriated retained deficits(23,246)(21,946)

Total retained deficits(23,246)(21,946)

Total shareholders’ equity

16,75318,053Net unrealized gains(losses) on other securities,
net of taxes

19(44)

Total valuation and translation adjustments

19(44)

Total Net Assets

16,77218,009Total Liabilities and Net Assets

109,382

118,612

Other liabilities
Due to reinsurers

Reserve for price fluctuations
Total Liabilities
Net Assets:
Shareholders’ equity
Common stock
Capital surplus

Retained deficits

Valuation and translation adjustments32. Statements of Income(Millions of yen)
For the year ended March
31, 2011
Ordinary Revenues

For the year ended March
31, 2012

74,16680,09673,375

79,172

73,343

79,141

31

31

766

872

784

873

Gains on sale of securities

323

Gains on redemption of securities

106(31)

(31)

24

50

72,021

77,236

Underwriting expenses

54,49158,067Net losses paid

39,25645,032

Loss adjustment expenses

4,782

5,081

Net commissions and brokerage fees

1,324

1,367

Provision for reserve for outstanding losses

3,178

3,287

Provision for underwriting reserves

5,948

3,298

0024

Losses on sale of securities-0Losses on redemption of securities

24

17,491

19,084

3679

2,144

2,859

Extraordinary Gains--Extraordinary Losses

65

18

Losses on sale or disposal of fixed assets

490Provision for reserve for price fluctuations and others

161716

17

2,078

2,841

Income Taxes –current

920

555

Income Taxes –deferred(138)986

Total Income Taxes

781

1,541

1,297

1,299

Underwriting income
Net premiums written
Interest and dividends on deposits of premiums
Investment income
Interest income and dividends

Transfer to interest and dividends on deposits of premiums

Other ordinary income
Ordinary Expenses

Other underwriting expenses

Investment expenses

Operating, general and administrative expenses
Other ordinary expenses
Ordinary Profit

Provision for reserve for price fluctuations

Income Before Income Taxes

Net Income4

3. Financial Summary (Year-on-Year Comparison)(Millions of yen)
For the year ended
March 31, 2011

For the year ended
March 31, 2012

Gross direct premiums written

72,83778,313

5,476

7.5 %

(Direct premiums written)

72,83778,3135,476

7.5

73,375

79,172

5,797

7.9

73,343

79,141

5,797

7.9

Underwriting expenses

54,49158,0673,576

6.6(Net losses paid)

39,25645,032

5,776

14.7

(Loss adjustment expenses)

4,782

5,081

298

6.2

(Net commissions and brokerage
fees)

1,324

1,367

42

3.2

766

872

105

13.8

784

873

89

11.4

3

23

20

519.7

24

1

77.6

－

3

3－

17,491

19,084

1,592

9.1

17,413

18,974

1,561

9.0

(12)

(29)

(16)

－

2,144

2,859

714

33.3

1,469

2,109

639

43.5

Extraordinary Gains－－－－

Extraordinary Losses

65

18

(47)

(72.5)

Extraordinary gains (losses), net

(65)

(18)

47

－

2,078

2,841

762

36.7

Income taxes -current

920

555

(364)

(39.6)

Income taxes -deferred

(138)

986

1,124

－

Total income taxes

781

1,541

76097.3

1,297

1,299

10.2

Net loss ratio

60.0%

63.3%

Net expense ratio

25.5%

25.7%

Yield on investments (income basis)

0.95%

0.98%

Yield on investments (realized basis)

0.97%

1.01%

Underwriting income(Net premiums written)

Ordinary Income (expenses)

Investment income(Interest income and dividends)(Gains on sale of securities)
Investment expenses(Losses on sale of securities)
Operating, general and administrative expenses(Operating, general and administrative expenses
related to underwriting)

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

Income before income taxes

Net IncomeChange(Amount)

Change(%)

Ratios(Reference) Yield on investments (market value basis) : 0.96% for the year ended March 31, 2011 and 0.91% for the year ended March 31, 201
Notes:

1. Underwriting profit = Underwriting income – (Underwriting expenses + Operating, general and administrative expenses related to underwriting)± Other income (expenses).
Other income (expenses) is the amount equivalent to the corporate income taxes for compulsory automobile liability insurance, etc.
2. Calculation methods for yield on investments are described in separate attachments.

5

Attachment

Calculation methods for yield on investments
1. Yield on investments (income basis)
The results of investment in assets are indicated as income revenues (interest income and dividends).
Interest income and dividends on investment assets is the numerator, and acquisition cost is thedenominator.
• Numerator: Interest income and dividends• Denominator: Average balance of either acquisition cost or amortized cost
2. Yield on investments (realized basis)
The results of investment in assets are indicated as the contribution to net income (loss) for the period(statements of income).
Realized profit and loss is the numerator, and acquisition cost is the denominator.
• Numerator: Investment income + Interest and dividends on deposits of premiums – Investment expenses• Denominator: Average balance of either acquisition cost or amortized cost

3. (Reference) Yield on investments (market value basis)
An indicator of investment efficiency based on market value. Realized profit and loss plus net unrealizedgains is the numerator, and market value is the denominator.
• Numerator = (Investment income + Interest and dividends on deposits of premiums – Investment expenses+ (Net unrealized gains at end of period* – Net unrealized gains at end of previous period*)• Denominator =Average balance according to the acquisition cost or amortized cost
+ Net unrealized gains on other securities at end of previous period**Amounts before tax deductions

6

4. Premiums and Losses Paid by Type of Policy
Direct Premiums Written(Millions of yen)
For the year ended
March 31, 2011
Amount

For the year ended
March 31, 2012

Composition YoY Change%

AmountComposition%

YoY Change%%

Fire

1850.3(33.6)

176

0.2(4.8)

Marine－－－－－－

Personal accident

7,135

9.8

2.8

7,424

9.5

4.0

Voluntary automobile

65,51689.9

9.5

70,712

90.3

7.9

－

－－－－

－

72,837100.0

8.6

78,313100.0

7.5

Compulsory
automobile liability

Total
Net Premiums Written(Millions of yen)

For the year ended
March 31, 2011
Amount

For the year ended
March 31, 2012

Composition YoY Change%

AmountYoY Change

Composition%%%

Fire80.0(34.6)

72

0.1

780.1

Marine

50.0

148.2

900.1

1430.5

Personal accident

7,369

10.0

2.8

7,626

9.6

3.5

Voluntary automobile

65,24589.0

9.5

70,45789.0

8.0

Compulsory
automobile liability

714

1.0

9.7

893

1.1

25.1

Total

73,343100.0

8.8

79,141

100.0

7.9

Net Loss Paid
(Millions of yen)

For the year ended
March 31, 2011
Amount

For the year ended
March 31, 2012

YoY Change Net loss ratio%

AmountYoY Change

56.9%

Net loss ratio%%

Fire0292.5

102.0

40

16,432.30

Marine11271.1

187.5

1381,150.40

153.2

Personal accident

1,620

9.5

24.6

1,796

10.9

26.3

Voluntary automobile

36,941

13.5

63.6

42,193

14.2

66.8

Compulsory
automobile liability

683

27.7

95.6

862

26.3

96.5

Total

39,25613.5

60.0

45,032

14.7

63.3

5. Risk-Monitored Loans
None

7

6. Securities
1. Trading-purpose securities
Not applicable

2. Held-to-maturity securities(Millions of yen)
As of March 31, 2012

As of March 31, 2011

Fair value is higher
than balance sheet
amountFair value is lower
than balance sheet
amountJGBs, otherbondsForeignsecurities
Subtotal
JGBs, otherbonds
Foreignsecurities
Subtotal

Total

Balance sheet
amountFair value

Difference

Balance sheet
amountFair value

Difference

54,861

55,376514

72,79774,289

1,491

700

713

13

897

907

10

55,561

56,089527

73,69575,197

1,501

11,083

10,875

(207)

69

69

0

196

193

(3)

－－－

11,28011,06967,159

(210)
317

69
73,76569
75,2660
1,501

66,841

3. Available-for-sale securities(Millions of yen)
As of March 31, 2011

JGBs, otherbonds
Japanese
Balance sheet amountstocks
is higher thanacquisition cost
OthersSubtotal
JGBs, otherbonds
Japanese
Balance sheet amountstocks
is lower thanacquisition cost
OthersSubtotal
Total

As of March 31, 2012

Balance sheet
amountAcquisition
cost

Difference

Balance sheet
amountAcquisition
cost

Difference

5,609

5,552

57

9,112

9,033

78

－

－

－－－－

－－－－

－

－

5,609

5,552

57

9,112

9,033

78

5,308

5,336

(27)

522

545

(23)

－

－

－

600

718

(118)

2,848

2,848

－

474

474

－

8,156
13,766

8,184
13,736

(27)
29

1,596
10,7091,739
10,772(142)(63)

4. Available-for-sale securities sold during the year
(Millions of yen)
For the year ended March 31, 2012

For the year ended March 31, 2011

JGBs, other bonds

Amount ofsales

Total gains
on sales507

3

Total losses
on sales－8

Amount ofsales

Total gains
on sales

3,008

23

Total losses
on sales07. Solvency Margin Ratio (Non-consolidated)(Millions of yen)
As of March 31, 2012
(Current standard)

As of March 31, 2012
(Previous standard)

28,75827,511

28,75816,75318,053

16,753

Reserve for price fluctuations

4361

43

Contingency reserve854

8

Catastrophe reserve

11,926

9,406

11,926

General reserve for possible loan losses---

Net unrealized gains on other securities(before subtracting tax effects)

26(63)

26--------(A) Total solvency margin (Non-consolidated)
Capital or treasury

Net unrealized gains on real estate
Excess refund reserve
Subordinated debt
The portion of the excess refund reserve and subordinateddebt that is not included in the margin
Deductible items
Others(R 1+R2)2+(R3+R4)2+R5+R6(B) Total risk (Non-consolidated)(C)(Reference)

As of March 31, 2011(Previous standard)

--

5,860

9,862

9,114

Ordinary insurance risk（Ｒ 1）

5,060

8,929

8,207

Third-sector insurance risk（Ｒ2）0-0Assumed interest rate risk（Ｒ 3）

1258

49

Asset management risk（Ｒ 4）

235

309

400

Business management risk（Ｒ 5）177297278

Major catastrophe risk（Ｒ 6）

615

627

615

981.4 ％

557.8 ％

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

631 ％Note: The foregoing figures were calculated based on provisions in Articles 86 (Solvency margin (non-consolidated)) and 87 (Risks (non-consolidated)) of the Ordinance for
Enforcement of the Insurance Business Law of Japan and Ministry of Finance Public Notice No.50 of 1996.
“Current standard” indicates standards reflecting the revised content of Cabinet Office Ordinance No. 23 of 2010, Cabinet Office Ordinance No. 11 of 2011,
FSA public ministerial announcement No. 48 of 2010, FSA public ministerial announcement No. 24 of 2011 and FSA public ministerial announcement No. 33 of 2012
(applied from the fiscal year ended March 31, 2012), whereas “previous standard” indicates standards prior to the reflection of the above-stated revised content.
<Solvency Margin Ratio> (Non-consolidated)
Non-life insurance companies maintain reserves to ensure their ability to pay claims when accidents occur and return contracted amounts at maturity on
savings-type insurance. Non-life insurance companies must also maintain sufficient ability to pay in the event of a major catastrophe or a dramatic drop in thevalue of the assets they hold—risk events outside the normal scope of expectations.
Total risk (non-consolidated) (item (B) in the table above) indicates dangers outside the general scope of expectations. The solvency margin ratio (non-consolidated) (item (C) in thetable above) is an indicator of an insurer’s ability to pay, calculated as prescribed by the Insurance Business Law of Japan, based on its percentage holdings of capital another reserves (in other words, the total solvency margin (non-consolidated) : as indicated by (A) above).
Regulations for calculating the non-consolidated solvency margin ratio were revised at the end of fiscal 2011 (March 31, 2012), making the measurement of risk more stringent.
“Risk events outside the normal scope of expectations” refers to the total of the amounts represented by the following risks.
(1) Insurance underwriting risk
(Ordinary insurance risk)(Third-sector insurance risk)：Risk outside the scope of risk incorporated into the rate of accident occurrence (excluding major catastrophe risk)(2) Assumed interest rate risk

：Risk that actual investment yield will fall below the investment yield assumed when calculating premiums(3) Asset management risk

： Risk arising from such factors as unexpectedly large fluctuations in prices on owned securities and other assets(4) Business management risk

：Unexpected risk to business management other than (1) through (3) above and (5)(5) Major catastrophe risk

：Risk arising from major catastrophes (such as the Great Kanto Earthquake and the Ise Bay Typhoon

A non-life insurer’s ability to pay (total solvency margin (non-consolidated)), as indicated by such factors as its capital and reserves is the total of the insurer’s net assets (excludingthe amount of expected outflow from the company), reserves (such as the reserve for price fluctuations and catastrophe reserve) and a portion of its n
unrealized gains on real estate.

9