May 20, 2014
Sony Financial Holdings Inc.

Summary Information on Sony Life’s Financial Results
for the Year Ended March 31, 2014
<Contents>
1. Key Performance Results

P.2

2. Policy Amount in Force by Insurance Function as of March 31, 2014

P.4

3. Example of Policyholder Dividend, based on Figures for the Year Ended March 31, 2014

P.5

4. Status of Investment Assets (General Account) for the Year Ended March 31, 2014

P.6

5. Non-consolidated Balance Sheets

P.14

6. Non-consolidated Statements of Income

P.15

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

P.16

8. Loans by Borrower Category

P.17

9. Risk-monitored Loans

P.17

10. Solvency Margin Ratio

P.18

11. Status of Separate Account Assets for the Year Ended March 31, 2014

P.20

12. Consolidated Summary

P.22

13. (Reference 1) Holdings of Securitized Papers and Other Sub-prime Related Investments

P.23

1

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

As of March 31, 2013
Category

Number% change fromMarch 31, 2012

AmountAs of March 31, 2014
% change fromMarch 31, 2012

Number% change fromMarch 31, 2013

Amount% change fromMarch 31, 2013

Individual life insurance
5,958
106.4
373,663
104.6
6,236
104.6
386,280
103.4
Individual annuities
82
115.0
4,127
111.6
94
114.8
4,669
113.1
Group life insurance－－
13,456106.1－－
14,052104.4
Group annuities
－
－
565
97.7
－
551
97.7
－
Notes: 1. Policy amounts for individual annuities are equal to the sum of (a) the funds to be held at the time annuity payments commence for policies for which annuity payments have notyet commenced and (b) the amount of policy reserves for which payments have commenced.
2. The policy amount in force for group annuities is equal to the amount of outstanding policy reserves.
(Number: Thousand, Amount: 100 millions of yen, %)New policy amountFor the year ended March 31, 2013
Category

For the year ended March 31, 2014

AmountNumberAmount
% YoY
% YoY
% YoY
Increase from
New policies
conversion
changechangechangeIndividual life insurance
607
105.1
43,966106.1
43,966－517
85.3
38,142
Individual annuities
13
98.5
579
100.5
579
－
15
117.8
750
Group life insurance
－
－
56
150.7
56
－
－
51
Group annuities
－
－
－
－
－
－
－
－
Notes: 1. The new policy amount including increase from conversion for individual annuities is equal to the funds held at the time annuity payments commence.
2. The new policy amount for group annuities is equal to the initial premium payment.
Number% YoY
New policies
change86.8
38,142
129.6
750
91.1
51
－
－

(2) Annualized Premiums(Millions of yen, %)Policy amount in force

Category
Individual life insurance
Individual annuities

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

As of March 31, 2013

% change fromMarch 31, 2012

As of March 31, 2014

% change fromMarch 31, 2013

654,723
15,214
669,937

105.3
110.6
105.4

680,005
16,980696,986

103.9
111.6
104.0

158,686106.5

167,075

105.3(Millions of yen, %)New policies

Category
Individual life insurance
Individual annuities

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

For the year ended
March 31, 2013
71,0692,193
73,263% YoYchange
103.5
99.6
103.4

18,397

107.6

For the year ended
March 31, 2014
61,2692,723
63,992% YoYchange
86.2
124.1
87.3

13,48673.3

Notes: 1. Annualized premiums refer to an amount that is calculated by multiplying individual premium amounts by a coefficient that differs depending on the premium payment methods,
thereby converting the figure to a per-year premium. (For lump-sum payment policies, premiums are divided by the number of coverage years.)
2. "Medical protection, living benefit protection and other products" indicates the portion of annualized premiums for medical protection benefits (hospitalization benefits,surgical procedure benefits, etc.) and products with living benefit protection (benefits for specific illness, nursing care benefits, etc.)

2

Increase fromconversion－－

(3) Major P/L Items
Category(Millions of yen, %)For the year ended
March 31, 2013

% YoYchangeFor the year ended
March 31, 2014

% YoYchangeIncome from insurance premiums

925,874113.5

960,986103.8

Investment income

199,833

149.2

212,323

106.3

Insurance claims and other payments

293,929102.3

327,257

111.3

Investment expenses

11,686

81.3

8,506

72.8

Ordinary profit

74,659107.5

69,205

92.7(4) Total Assets
Category
Total assets(Millions of yen, %)As of March 31, 2013
5,952,750

3% change fromMarch 31, 2012

114.0

As of March 31, 2014
6,624,903% change fromMarch 31, 2013

111.3

2. Policy Amount in Force by Insurance Function as of March 31, 2014
(Number: Thousand, Amount: 100 millions of yen)
Total

Individual life insurance

Individual annuities

Group life insurance

NumberAmountNumberAmountNumberAmountNumberAmountOrdinary death

5,121

368,720

－

－

1,958

14,052

7,080

382,772

Accidental death756

68,156

－

－

13

7

769

68,164

Death protection
with otherconditions

308

13,458

－

－

－

－

308

13,458

1,114

17,560

94

4,669

0

0

1,208

22,230

Accidental
hospitalization

2,607

180

－

－

49

0

2,657

181

Sickness
hospitalization

2,607

180

－

－

－

－

2,607

180

Hospitalization
with otherconditions

853

74

－

－

－

－

853

74

Disability protection

496

－

－

－

49

－

545

－

Surgery protection

1,677

－

－

－

－

－

1,677

－

Category

Death protection

Living protection
Hospitalization protection

Asset-formation insurance,
asset-formation annuities

Group annuities
Category
NumberLiving protection

Category

Amount184

551

AmountNumberAmount

－

184

551

－

Medical protection
insurance
NumberHospitalization
protection

Number

Total

Disability insurance
Category

Amount-Number-Disability protection

Amount-Notes: 1. The number of new policies for group life insurance products, and group annuity products reflects the total numberof insured parties.
2. Of the policy amount in the living protection column, policy amount in force for individual annuities
and group life insurance (annuity payment rider) is equal to the sum of (a) the funds to be held at the timeannuity payments are to commence for policies for which annuity payments have not yet commenced and(b) the amount of policy reserves for policies for which payments have commenced.
The policy amount in force for group annuity products is the amount of outstanding policy reserves.
3. Figures for hospitalization protection show the daily claims for hospitalization.

4-

3. Example of Policyholder Dividend, based on Figures for the Year Ended March 31, 2014
(1) Standard dividend yields for semi-participating individual life insurance with
policyholder
For the year ended
March 31, 2013

For the year ended
March 31, 2014

Assumed interest rates of 2.00% or lessLevel-premium
Lump-sum premium and others

1.55%
1.20%

1.55%
1.20%

1.40%
1.05%

1.40%
1.05%

Assumed interest rates of more than 2.00%
Level-premium
Lump-sum premium and others(2) Below is an example of policyholder dividends for semi-participating whole life nursing-care insurance(before annuities commence) using figures for the fiscal year ended March 31, 2014.
Example: Semi-participating whole life nursing-care insurance (before nursing care annuity payments commences)Entered at 30, male, lump-sum payment, 10x death benefit, basic care annuity amount of 0.5 million yen

Contract Date
November 2, 2013
November 2, 2012
November 2, 2011
November 2, 2010
November 2, 2009
November 2, 2008
November 2, 2007
November 2, 2006

Assumedinterest rate
1.00%
1.50%
1.50%
1.50%
1.50%
1.50%
1.50%
1.50%

Years
elapsed1 year
2 years
3 years
4 years
5 years
6 years
7 years
8 years

Ongoing
policy(yen)

Policies to which nursing
care applies, ending at
death of policyholder (yen)

3,220
-

7,533
0
0
0
3,220
0
0
0

Note: 1. The “Policies to which nursing care applies, ending at death of policyholder” column shows theamount receivable for nursing care or upon death. The number of years elapsed is the number
through November 2, 2014.
2. The above-stated dividend amount is the sum of the pro-rated dividend amount(policy reserve x dividend participation ratio) and interest through November 2, 2014
(excluding dividends already paid).
Dividend participation ratio = Standard dividend yield - Assumed interest rate(3) Standard dividend yield on group annuities
The standard dividend yield on group annuities is 1.30%, using figures for the year ended March 31, 2014
Note: Dividend participation is calculated as follows:
Dividend amount = Policy reserve x Dividend participation ratio
Dividend participation ratio = Standard dividend yield - Assumed interest rate(4) For group annuities and other products, a reserve for policyholders’ dividends is accumulated inaccordance with each product’s characteristics

5

4. Status of Investment Assets (General Account) for the Year Ended March 31, 2014
(1) Status of Asset Investments for the Fiscal Year Ended March 31, 2014
1) Investment Environment
During the fiscal year ended March 31, 2014, the Japanese economy continued to expand. The government
economic stimulus package introduced in the first half of the year, coupled with ongoing yen depreciation, led tomajor increases in public-sector investment and exports. Furthermore, rising stock market prices boosted consumer
sentiment, leading to robust personal consumption. The second half of the fiscal year saw demand increase as
consumers sought to make purchases ahead of the April 2014 consumption tax hike, and sales of durable goods andprivate-sector housing investment soared. At the same time, the rate of growth in public-sector investment andexports, which had spurred growth in the first half, leveled off in the second half. The rate of real GDP growthconsequently eased somewhat, although growth was robust for the fiscal year as a whole.
Real GDP growth, year on year, was a positive 4.1% for the April–June quarter, a positive 0.9% for theJuly–September quarter and a positive 0.7% for the October–December quarter, and is estimated at a positive 4.6%
for the January–March quarter1.
The Japanese bond market experienced significant changes following the introduction of “qualitative andquantitative monetary easing” by the Bank of Japan in April 2013. Specifically, the BOJ announced plans to double
the monetary base and holdings of long-term Japanese government bonds (JGBs) and exchange traded funds (ETFs)
within two years, and to more than double its average holding period for long-term JGBs. Initially, the market
responded to the introduction of these policies with growing concern about falling market liquidity, which prompted
temporary but wild fluctuations in interest rates. However, the BOJ’s announcement of a 2% inflation target andplans to maintain qualitative and quantitative monetary easing for as long as needed to maintain stability affected thetime axis on short- and medium-term bonds, limiting the range of interest rate increases. These changes also rippled
outward into the long-term bond market, gradually reducing bond market volatility. A sense of calm returned to thebond market toward the end of the fiscal year, with interest rates moving slightly lower. Yields on 10-year JGBs, anindicator of long-term interest rates, fell to 0.325% at one point in April 2013, again rising temporarily to 0.996% in
May 2013. As of March 31, 2014, 10-year JGB yields were 0.642%, up 0.082 percentage point from a year earlier.
Stock market performance was up substantially. Against a backdrop of the BOJ’s introduction of qualitative andquantitative monetary easing and a sense of expectation surrounding government growth strategies, the Nikkei Stock
Average rose from ¥12,397.91 on March 31, 2013, to ¥15,942.60 in mid-May 2013. Thereafter, the average
temporarily fell back below ¥13,000 on concerns that the United States would scale back its level of quantitativeeasing, as well as concerns about emerging market economies. Following that adjustment phase, stock prices began
to rebound gradually on the strength of Japanese corporate earnings. On March 31, 2014, the Nikkei closed at¥14,827.83, up ¥2,429.92 from its level one year earlier.
On foreign exchange markets, the yen continued to depreciate. The yen–dollar market responded favorably to
the BOJ’s introduction of qualitative and quantitative monetary easing in April 2013, going from ¥94.22 against the
U.S. dollar as of March 31, 2013, to ¥103.74 at one point in May 2013. Thereafter, given concerns of the UnitedStates reducing its level of quantitative easing and with international tensions mounting, investors began buying
back yen in line with a growing tendency toward offloading risk. This activity caused the yen to appreciate again toa level of around ¥94 to the U.S. dollar. In the second half of the fiscal year, the U.S. economic recovery and a6settlement between the U.S. ruling and opposition parties on raising the nation’s debt ceiling encouraged investors tobuy back dollars. The ensuing yen depreciation brought the exchange rate back to stability at a level above ¥100 to
the dollar. As of March 31, 2014, the yen was trading at ¥103.23 to the U.S. dollar, having depreciated ¥8.97 against
the dollar over the course of the year.

(ii) Investment Policy
Our investment policy is based on asset liability management (ALM), a strategy stemming from an understanding of
the characteristics of insurance liabilities and prioritizing investments in assets that have corresponding
characteristics. Specifically, as life insurance policies represent long-term liabilities, we invest primarily inultralong-term JGBs that have a long term remaining until maturity. This approach allows us to appropriately
control the risks associated with interest rate fluctuations on insurance liabilities. Meanwhile, we limit ourinvestments in risky investments such as equities.

(iii) Results of Investment
As of March 31, 2014, general account assets totaled ¥5,984.3 billion, up 10.8%, or ¥582.2 billion, from a year
earlier. Within general account assets, domestic bond investment totaled ¥5,190.0 billion (accounting for 86.7% of
total general account assets), foreign bonds ¥79.8 billion (1.3%), Japanese stocks ¥33.2 billion (0.6%), monetarytrusts ¥305.3 billion (5.1%), policy loans ¥154.1 billion (2.6%), real estate ¥66.5 billion (1.1%), and cash anddeposits and call loans ¥32.6 billion (0.5%).

7

(2) Portfolio of General Account Assets
Category
Cash and deposits, call loans
Securities repurchased under resaleagreements
Pledged money for bond borrowing
transaction
Monetary claims purchased
Securities under proprietary accounts
Monetary trusts
Securities
JGBs, other bonds
Japanese stocks
Foreign securities
Bonds
Stocks, etc.
Other securities
Loans
Real estate
Deferred tax assets
Other assets
Reserve for possible loan losses
Total
Foreign-currency denominated assets

1.9(Millions of yen, %)As of March 31, 2014
Amount%32,617
0.5

－

－

－

－

－

－

－

－

－
－
306,122
4,683,747
4,561,048
31,10687,42862,022
25,406
4,164
145,104
70,301
13,72480,038(235)
5,402,126
41,756

－
－
5.7
86.7
84.4
0.6
1.6
1.1
0.5
0.1
2.7
1.3
0.3
1.5
(0.0)
100.0
0.8

－
－
305,346
5,334,049
5,190,065
33,205
106,752
79,835
26,916
4,026
154,219
66,532
13,64378,173(242)
5,984,341
58,195

－
－
5.1
89.1
86.7
0.6
1.8
1.3
0.4
0.1
2.6
1.1
0.2
1.3
(0.0)
100.0
1.0

As of March 31, 2013
Amount%103,321

Note: Amount for real estate is equivalent to the total amount of land, buildings and construction in progress.

(3) Changes in General Account Assets by Categories(Millions of yen)
Category

For the year ended March 31, 2014

For the year ended March 31, 2013

Cash and deposits, call loans
Securities repurchased under resaleagreements
Pledged money for bond borrowing
transaction
Monetary claims purchased
Securities under proprietary accounts
Monetary trusts
Securities
JGBs, other bonds
Japanese stocks
Foreign securities
Bonds
Stocks, etc.
Other securities
Loans
Real estate
Deferred tax assets
Other assets
Reserve for possible loan losses
Total
Foreign-currency denominated assets

38,452(70,704)

－

－

－

－

－
－
17,824569,218585,292(13,946)(2,733)
2,389(5,123)606
6,195(2,658)(13,261)7,819(21)
623,569(1,239)－－(775)
650,301
629,017
2,099
19,323
17,812
1,510
(138)
9,114
(3,769)(80)(1,864)(6)582,215
16,438

Note: Amount for real estate is equivalent to the total amount of land,
land buildings and construction in progress.
progress8

(4) Investment Income(Millions of yen)

For the year ended
March 31, 2013

Category
Interest income and dividends
Interest income from deposit
Interest income and dividends from securities
Interest income from loans
Income from real estate for rent
Other income from interests and dividends
Gains on securities under proprietary accounts
Income from monetary trusts, net
Income from trading securities, net
Gains on sale of securities
Gains on sale of JGBs, other bonds
Gains on sale of Japanese stocks
Gains on sale of foreign securities
Other
Gains on redemption of securities
Gains on derivatives, net
Foreign exchange gains, net
Reversal of reserve for possible loan losses
Other investment income
Total

108,539
0
92,1675,450
10,854
67
－
5,259
－
2,420
3
2,066
349
－
－
－
－
－
13
116,232

For the year ended
March 31, 2014
122,160
0
106,187
5,691
10,250
31
－
5,311
－
773
1
673
98
－
2
172
1,183
－
47
129,652(5) Investment Expenses(Millions of yen)

For the year ended
March 31, 2013

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

43
－
－
－
1,587
0
412
1,174
－
327
－
327
－
－
－
226
1,176
21
－
2,115
6,188
11,686

9

For the year ended
March 31, 2014
48
－
－
－
528
－
487
41
－
－
－
－
－
－
－
－
－
6
－
2,077
5,845
8,506

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

Category
Cash and deposits, call loans

For the year ended
March 31, 2013

For the year ended
March 31, 2014

0.06

0.05

Securities repurchased underresale agreements--

Pledged money for bondborrowing transaction--

Monetary claims purchased--

Securities under proprietaryaccounts--

Monetary trusts

1.96

1.98

Securities

2.09

2.18

JGBs, other bonds

2.09

2.06

Japanese stocks

5.98

2.22

Foreign securities

0.93

8.30

Loans

3.86

3.80

Real estate

5.13

5.65

Total

2.12

2.20

Overseas investment

0.93

8.19

Notes: 1. The denominator of investment yield calculation is a daily averaged carrying amount, while the numerator isinvestment income minus investment expenses.
2. Valuation gains for Article 112 of Insurance Law is not accounted for.
3. Yield on overseas investment is a total of foreign-currency-denominated assets and yen-denominated assets.
(ii) Valuation gains (losses) on trading-purpose securities(Millions of yen)

As of March 31, 2013
Category
Trading-purpose securities

As of March 31, 2014

Net valuation gains(losses) recorded inincomeBalance sheet
amount--Note: The chart above includes trading-purpose securities in "monetary trusts" etc.

10

Net valuation gains(losses) recorded inincomeBalance sheet
amount--(iii) Fair Value Information on Securities
a. Fair value information on securities with market value (except trading-purpose securities)(Millions of yen)

As of March 31, 2013
Category

Net unrealized gains (losses)

Carrying
amountHeld-to-maturity securities

As of March 31, 2014

Fair value

3,874,232

Unrealized Unrealized
gains
losses4,425,970

551,737

551,737-

Net unrealized gains (losses)

Carrying
amountFair value

4,409,662

Unrealized Unrealized
gains
losses4,839,983

430,320

430,39473

Policy reserve matching bonds

-

-

-

-

-

-

-

-

-

-

Stocks of subsidiaries andaffiliated companies

-

-

-

-

-

-

-

-

-

-

Available-for-sale securities

955,999

1,079,296

123,296

123,344

JGBs, other bonds

925,308

1,036,956

111,648

111,648

Japanese stocks

14,76020,994

6,233

6,281

Foreign securities

14,454

18,681

4,226

4,226

-

14,454

18,681

4,226

4,226

-

Bonds
Stocks, etc.

-

Other securities

-

1,476

2,664

1,188

47
47

-

1,065,514

1,189,899

124,384

124,42035

1,035,912

1,146,757

110,844

110,866

22

12,236

21,205

8,968

8,972

3

15,891

19,403

3,511

3,521

10

15,891

19,403

3,511

3,521

10

-

1,188

-

1,474

-

-

2,533

1,059

-

-

1,059

-

Monetary claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

-

Total

4,830,232

5,505,267

675,034

675,082

JGBs, other bonds

4,756,200

5,410,686

654,486

654,486 -Japanese stocks

14,76020,994

6,233

6,281

Foreign securities

57,79570,922

13,126

13,126-

57,79570,922

13,126

13,126-

Bonds
Stocks, etc.

-

Other securities

1,476

2,664

1,188

47

47

-

5,475,177

6,029,882

554,705

554,814109

5,385,143

5,913,448

528,305

528,327

22

12,236

21,205

8,968

8,972

3

76,323

92,695

16,371

16,45584

76,323

92,695

16,371

16,455

84

-

1,188

-

1,474

-

-

2,533

1,059

1,059

-

Monetary claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

-

Notes: 1. The above table includes assets which are permitted to be treated as equivalent to securities defined in the Financial Instruments and Exchange Law of Japan.
2. Carrying amount and net unrealized gains (losses) on monetary trusts, including items other than trading-purpose securities, amounted to ¥268,668 million and ¥37,253 million.
3. Carrying amount represents the amount after deductions for depreciable costs and impairment losses, before mark-to-market.

b. Carrying amounts of the securities without market value(Millions of yen)

Category

As of March 31, 2014

As of March 31, 2013

Held-to-maturity securities--

Unlisted foreign bonds--

Others--

Policy reserve matching bonds--

Stocks of subsidiaries and affiliated companies

12,607

16,000Available-for-sale securities

20,372

17,289Unlisted Japanese stocks (except OTC stocks)

4

Unlisted foreign stocks (except OTC stocks)

948

823
-

-

Unlisted foreign bonds
OthersTotal

1119,41916,46632,98033,289c. Fair value information consisting of that stated in the previous table-a and foreign exchange and other gains (losses) for table-b as follows:(Millions of yen)

As of March 31, 2013
Category

Held-to-maturity securities

Net unrealized gains (losses)

Carrying
amountFair value

3,874,232

Policy reserve matching bonds

As of March 31, 2014
Unrealized Unrealized
gains
losses4,425,970-

551,737-

Stocks of subsidiaries andaffiliated companies

12,607

12,607Available-for-sale securities

551,737

-

-

-

-

-

-

-

Fair value

4,409,662

Unrealized Unrealized
gains
losses4,839,983-

430,320-

430,394

73

-

-

-

-

-

-

16,00016,0001,082,804

1,214,309

131,504

131,986481

1,035,912

1,146,757

110,844

110,866

22

12,236

21,205

8,968

8,972

3

976,372

1,103,708

127,335

128,555

JGBs, other bonds

925,308

1,036,956

111,648

111,648

Japanese stocks

14,76520,998

6,233

6,281

Foreign securities

15,40320,083

4,679

4,679

-

16,714

21,129

4,414

4,424

10

14,454

18,681

4,226

4,226

-

15,891

19,403

3,511

3,521

10

Stocks, etc.

948

1,401

452

452

-

823

1,725

902

902

Other securities

20,895

Bonds

25,669

4,774

1,219

Net unrealized gains (losses)

Carrying
amount

47

5,946

1,171

17,94025,217

7,277

-

7,723

446

Monetary claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

-

Total

4,863,212

5,542,285

679,073

680,292

JGBs, other bonds

4,756,200

5,410,686

654,486

654,486 -Japanese stocks

24,872

31,106

6,233

6,281

Foreign securities

1,219

47

5,508,467

6,070,292

561,825562,381555

5,385,143

5,913,448

528,305

528,327

22

24,23633,205

8,968

8,972

3

61,24474,823

13,578

13,578-81,14698,42017,273

17,35784

Bonds

57,79570,922

13,126

13,126-76,323

92,695

16,371

16,45584

Stocks, etc.

3,448

3,901

452

452

-

4,823

5,725

902

902

Other securities

20,89525,669

4,774

5,946

1,171

17,94025,217

7,277

-

7,723

446

Monetary claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

-

12

(iv) Fair value information on monetary trusts(Millions of yen)

As of March 31, 2013
Category

Monetary trusts

Balancesheet
amountFair value

306,122

306,122

As of March 31, 2014

Net unrealized gains (losses)
Unrealized Unrealized
gains
losses－－－Balancesheet
amount305,346

Net unrealized gains (losses)
Fair value
305,346

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

Monetary trusts for investment(Millions of yen)

As of March 31, 2013
Category

Balance sheet amount

As of March 31, 2014

Net valuation
gains (losses)
recorded income－

Monetary trusts for investment

Balance sheet amount－

Net valuation
gains (losses)
recorded income－－

Monetary trusts for held-to-maturity and policy reserve matching and other monetary trusts(Millions of yen)

As of March 31, 2013

As of March 31, 2014

Net unrealized gains (losses)

Category

Carrying
amountFair value

Net unrealized gains (losses)

Unrealized Unrealized
gains
lossesCarrying
amountFair value

Unrealized Unrealized
gains
lossesMonetary trusts for held-to-maturity

－

－

－

－

－

－

－

－

－

－

Monetary trusts for policy reserve matching

－

－

－

－

－

－

－

－

－

－

267,865

306,071

38,20638,206－

268,042

305,296

37,25337,253－

Other monetary trusts

13

5. Non-consolidated Balance Sheets(Millions of yen)
As ofMarch 31, 2013

As ofMarch 31, 2014

AmountAmountAssets:Cash and deposits
Cash
Deposits
Call loans
Monetary trusts
Securities(Japanese government bonds)(Japanese municipal bonds)(Japanese corporate bonds)(Japanese stocks)(Foreign securities)(Other securities)
Loans
Policy loans
Commercial loans
Tangible fixed assets
Land
Buildings
Leased assets
Other tangible fixed assets
Intangible fixed assets
Software
Other intangible fixed assets
Due from reinsurers
Other assets
Other receivable
Prepaid expenses
Accrued income
Money on deposits
Advance payments
Other
Prepaid pension costs
Deferred tax assets
Reserve for possible loan losses

27,37328
27,34497,088306,122
5,211,535
4,669,003
10,20841,092
61,884275,439
153,906
145,104
145,01985
70,96931,08939,212
185
482
26,102
26,092
9
100
53,02331 35831,358
1,543
15,377
4,185
379
179
1,841
13,724(235)

15,827
4
15,82334,628305,346
5,954,716
5,316,110
3,869
38,74670,442
342,187
183,359
154,219
154,18038
67,10030,10336,42919548
23,86923,8599
138
53,78730 95430,954
1,532
16,600
4,182
400
117
1,867
13,643(242)

Total Assets

5,952,750

6,624,903

As of
As of
March 31, 2013 March 31, 2014
AmountAmountLiabilities:
Policy reserves and others
Reserve for outstanding claims
Policy reserves
Reserve for policyholders' dividends
Due to agencies
Due to reinsurers
Other liabilities
Accrued income tax
Other payables
Accrued expenses
Unearned income
Deposits received
Deposits received for guarantee
Derivative liabilities
Lease obligations
Asset retirement obligations
Policy suspense and other suspense
Reserve for employees' retirement benefits
Reserve for directors' retirement benefits
Reserve for price fluctuations
Reserve for price fluctuations
Deferred tax liabilities on land revaluation

5,501,850
24,646
5,472,930
4,273
2,431
547
49,844
15,586
1,222
14,079
907
1,090
5,307
172
243
656
10,577
22,770171
32,26432,264536

6,152,574
24,702
6,123,633
4,237
2,169
567
32,812
8,702
1,213
13,566
939
823
5,058
－
21
654
1,832
25,38966
41,556
41,556536

Total Liabilities

5,610,417

6,255,673

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

70,0005,865
5,865
187,698
15,478172,219
172,219
263,563
80,283(1,513)78,769342,333
5,952,750

70,0005,865
5,865
211,461
18,138
193,323
193,323
287,327
83,416(1,513)
81,903369,230
6,624,903

14

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

For the ｙear ended
March 31, 2013
1,142,274
925,874
924,472
1,402
199,833
108,539
0
92,1675,450
10,854
67
5,259
2,420
－
－
－
13
83,601
16,566
2,087
11,861
2,618
1,067,614
293,929
71,0609,571
46,809161,872
2,649
1,965
1 965
630,529
607
629,90912
11,686
43
1,587
327
226
1,176
21
2,115
6,188
109,060
22,408
7,078
7,929
4,150
3,141
3
105
74,659
8,961
21
962
6,945
6,945
1,031
－
2,104
63,594
28,774(7,624)
21,14942 44442,444

Ordinary Revenues
Income from insurance premiums
Insurance premiums
Ceded reinsurance commissions
Investment income
Interest income and dividends
Interest income from deposits
Interest income and dividends from securities
Interest income from loans
Rent revenue from real estate
Other interest income and dividends
Income from monetary trusts, net
Gains on sale of securities
Gains on redemption of securities
Gains on derivatives, net
Foreign exchange gains, net
Other investment income
Gains on separate accounts, net
Other ordinary income
Income for annuity riders
Income from deferred payment of claims
Other ordinary income
Ordinary Expenses
Insurance claims and other payments
Insurance claims
Annuity payments
Insurance benefits
Surrender payments
Refund to policyholders
R i
Reinsurance
premiumsi
Provision for policy reserves and others
Provision for reserves for outstanding claims
Provision for policy reserves
Interest on policyholders' dividend reserve
Investment expenses
Interest expenses
Losses on sale of securities
Devaluation losses on securities
Losses on derivatives, net
Foreign exchange losses, net
Provision for reserve for possible loan losses
Depreciation of real estate for rent and others
Other investment expenses
Operating expenses
Other ordinary expenses
Payments of deferred claims
Taxes
Depreciation and amortization
Provision for reserve for employees' retirement
Provision for reserve for directors' retirement benefits
OthersOrdinary Profit
Extraordinary Losses
Losses on disposal of fixed assets
Impairment losses
Provision for reserve for price fluctuations
Provision for reserve for price fluctuations
Losses on sale of subsidiary's stocks
OthersProvision for Reserve for Policyholders' Dividends
Income Before Income Taxes
Income Taxes - current
Income Taxes -deferred
Income Taxes -total
Net Income

15

For the year ended
March 31, 2014
1,197,109
960,986
959,660
1,325
212,323
122,160
0
106,187
5,691
10,250
31
5,311
773
2
172
1,183
47
82,67023,7992,151
17,197
4,451
1,127,904
327,257
77,413
10,76855,510178,402
3,203
1,959
1 959
650,76455
650,703
5
8,506
48
528
－
－
－
6
2,077
5,845
113,868
27,507
10,884
7,981
5,064
3,532
－
44
69,205
9,389
41
36
9,291
9,291
－
19
2,232
57,583
21,953(1,433)
20,51937 06337,063

7. Reconciliation to Core Profit and Non-consolidated Ordinary Profit(Millions of yen)
For the year ended
March 31, 2013
Core Profit

A

Capital gains
Income from monetary trusts, net

For the year ended
March 31, 2014

80,04572,365

2,420

2,130

－

－

－

－

Gains on sale of securities

2,420

773

Gains on derivatives, net－

172

Foreign exchange gains, net

－

1,183

Other capital gains

－

－

3,351

949

－

－

Income from trading securities, net

Capital losses
Losses on monetary trusts, net

－

－

1,587

528

Devaluation losses on securities

327－

Losses on derivatives, net

226－

Foreign exchange losses, net

1,176

－

34

420

Losses on trading securities, net
Losses on sale of securities

Other capital losses
Net capital gains (losses)

B

(931)

1,180

Core profit plus net capital gains (losses)

A+B

79,11473,545－－

Gains from reinsurance－－

Reversal of contingency reserve－－

Reversal of specific reserve for possible loans losses－－

Others

－

－

4,454

4,340

－

－

4,223

4,110

Provision for specific reserve for possible loans losses
Provision for reserve for loan losses from borrowers in specificforeign countries

21

6

－

－

Write-off of loans

－

－

209

223

C

(4,454)(4,340)A+B+C

74,65969,205

Other one-time gains

Other one-time losses
Losses from reinsurance
Provision for contingency reserve

OthersNet other one-time gains (losses)
Ordinary Profit

Notes: 1. Core profit for the fiscal year ended March 31, 2014 (A) includes income gains of ¥5,311million in income from monetary trusts.
Other capital losses include provision of policy reserves of ¥227 million for currency market fluctuations of products
dominated in foreign currencies and impairment losses of ¥193 million from investment partnership. "Others" of other one-time loss
include provision of additional policy reserve of ¥223 million.
2. Core profit for the fiscal year ended March 31, 2013 (A) includes income gains of ¥5,259 million in income from monetary trusts.
Other capital losses include impairment losses of ¥34 million from investment partnership. "Others" of other one-time losses
include provision of additional policy reserve of ¥209 million.

16

8. Loans by Borrower Category(Millions of yen)

Category

As of March 31, 2013

As of March 31, 2014

Bankrupt and quasi-bankrupt loans--

Doubtful loans--

Sub-standard loans--

Sub-total--[ ] % to total

(-)

(-)

147,608

156,815

147,608

156,815

Normal loans
Total

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

9. Risk-monitored Loans
Not applicable1710. Solvency Margin Ratio (Current Standard)(Millions of yen)

Category

As of March 31, 2013

As of March 31, 2014

872,502954,157

Common stock, etc.

252,363

274,027

Reserve for price fluctuations

32,26441,556

Contingency reserve

59,561

63,6710

0

Net unrealized gains on other securities (before taxes) multiplied by 90% if
gains or 100% if losses

114,602118,354

Net unrealized gains on real estate multiplied by 85% if gains or 100% if losses(2,012)75

Amount excluded from deferred tax assets－－

Unallotted portion of reserve for poricyholders' dividends

464

174

Deferred tax assets

70,60478,868

Excess of the amount equivalent to policy reserve under Zillmer method

372,561

400,056－－(27,907)(20,626)－(2,000)76,47280,904

Total solvency margin(A)

General reserve for possible loan losses

Subordinated debt
The portion of the excess amount of policy reserves based on Zillmer method
and subordinated debt that is not included in the margin
Deductible items

Total risk

(B)

Insurance risk

R1

21,871

22,512

Third-sector insurance risk

R8

8,307

8,368

Assumed interest rate risk

R2

29,05429,616

Minimum guarantee risk

R711,474

12,896

Asset management risk

R327,59230,023Business management risk

R4

1,966

2,068

2,281.8%

2,358.7%

Solvency margin ratio
(A)
x

100

(1/2) x (B)Notes:1. The figures were calculated based on provisions in Articles 86 and 87 of the Ordinance for Enforcement of the Insuranceof Japan and the Ministry of Finance Public Notice No. 50 of 1996.
2. Minimum guarantee risk was calculated based on the standardized approach.

18

(Reference)Consolidated Solvency Margin Ratio
Although Sony Life is not required to prepare consolidated financial statements since it does not have any consolidated subsidiaries, Sony
Life quarterly discloses consolidated solvency margin ratio which includes its affiliated companies.
(Millions of yen)

Category
Total solvency margin

As of March 31, 2013

As of March 31, 2014

855,444931,256

Common stock, etc.

247,803

267,645

Reserve for price fluctuations

32,26441,556

Contingency reserve

59,561

63,671

Catastrophe reserve－－

General reserve for possible loan losses

00114,602118,354(2,012)75

Total amount of unrecognized actuarial gains and unrecognized past
service costs－

ᇞ 2,768

Amount excluded from deferred tax assets－－

Deferred tax assets

70,60478,868

Excess amount of policy reserves based on Zillmer method

372,561

400,056－－

The portion of the excess amount of policy reserves based on Zillmer
method and subordinated debt that is not included in the margin(32,467)(27,008)

D d tibl items
Deductibleit(7 938)(7,938)(9 369)(9,369)73,071

77,160(A)

Net unrealized gains on other securities multiplied by 90% if gains or
100% if losses
Net unrealized gains on real estate multiplied by 85% if gains or 100% if
lossesSubordinated debt

(B)

Total risk
Insurance risk

R1

21,871

22,512

Ordinary insurance risk

R5

－

－

Major Catastrophe risk

R6

－

－

8,307

8,368

－

－

29,05429,616

11,474

12,896

Third-sector insurance risk

R8

Insurance risk of small-amount short-term insurance providers
Assumed interest rate risk
Minimum guarantee risk

R9

R2
R7

Asset management risk

R323,93426,023Business management risk

R4

1,892

1,988

100

2,341.3%

2,413.8%

Solvency margin ratio(A)x(1/2) x (B)Notes: 1. The above-stated figures were calculated based on provisions in Articles 86-2 and 88 of the Ordinance for
Enforcement of the Insurance Business Law and FSA Public Notice No. 23 (2011).
2. Minimum guarantee risk was calculated based on the standardized approach.
3. From March 31, 2014, calculations have included the total amount of unrecognized actuarial gains and unrecognized past service costs.
(Figures shown as of March 31, 2013, are in accordance with the previous method.)1911. Status of Separate Account Assets for the Year Ended March 31, 2014
(1) Balance of Separate Account Assets
Assets relating to individual variable life insurance and individual variable annuities are jointly invested at Sony Life.

(Millions of yen)

Category

As of March 31, 2013

As of March 31, 2014

AmountAmountIndividual variable life
insurance and individual
variable annuities
Group annuities

640,562

550,624--

550,624

Total separate account

640,562(2) Status of Individual variable life insurance and individual variable annuities (Separate Account)(i) Policy amount in forcea) Individual variable life insurance(Number: Thousand, Amount: Millions of yen)

Category

As of March 31, 2014

As of March 31, 2013
NumberVariable life insurance（whole life type）
Variable life insurance（limited term type）
Variable life insurance（term type）
Total

AmountNumberAmount577

7,113,036

610

7,302,062

43

146,77847

164,5081

46,810145,807622

7,306,626

659

7,512,377

Note: Amounts include the rider portion.

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

Category
Individual variableannuities

As of March 31, 2013
NumberAs of March 31, 2014

Amount27

146,759

NumberAmount30

161,758

Note: The amount of individual variable annuities is equal to the sum of (a) the funds to be held at the time annuity payments are to commence
for policies for which annuity payments have not yet commenced and (b) the amount of policies for which payments have commenced.

20

(ii) Portfolio of separate account assets in individual variable life insurance and individual variable annuities
Assets relating to individual variable life insurance and individual variable annuities are jointly invested at Sony Life.

(Millions of yen, %)Category

As of March 31, 2014

As of March 31, 2013
Amount%Amount%Cash and deposits, call loans

21,1393.8

17,838

2.8

Securities

527,78795.9

620,666

96.9

JGBs, other bonds

159,25628.9

168,661

26.3

Japanese stocks

30,778

5.6

37,237

5.8

Foreign securities

188,01034.1

235,43536.8

Foreign bonds

44,775

8.1

51,863

8.1

Foreign stocks, etc.

143,235

26.0

183,57128.7

149,741

27.2

179,332

28.0

Loans

－

－

－

－

Other

1,697

0.3

2,057

0.3

－

－

－

－

550,624100.0

640,562

100.0

Other securities

Reserve for possible loan losses
Total(iii) Net investment gains (losses) of separate account assets in individual variable life insurance and individual
variable annuities
Assets relating to individual variable life insurance and individual variable annuities are jointly invested at Sony Life.

(Millions of yen, %)Category

For the year ended March 31, 2013

For the year ended March 31, 2014

Interest income and dividends

9,147

11,773

Gains on sale of securities

8,033

16,052

15

74

Valuation gains on securities

103,039

143,031

Foreign exchange gains, net

－

5,036

Gains from derivatives, net－－

Other investment income

0

0

2,558

680

Losses on redemption of securities

117

141

Devaluation losses on securities

32,237

92,255

Foreign exchange losses, net

1,390

－

Losses from derivatives, net－－

Other investment expenses

331

221

Net investment gains (losses)

83,601

82,670Gains on redemption of securities

Losses on sale of securities21

12. Consolidated Summary
Not applicable22

(Reference) Holdings of Securitized Papers and Other Sub-prime Related Investments
Sony Life’s holdings of securitized papers and other sub-prime related investments as of March 31, 2014, are as follows. Sony
Life holds no sub-prime related investments.
(1) Special-purpose entities (SPEs)
Fair value
－
－
－
－
－
－
－

Special purpose entities (SPEs)
ABCP
facilitated by Sony Life
SIV
facilitated by Sony Life
Othersfacilitated by Sony Life(100 millions of yen)
Unrealized
Realized gains
gains (losses)(losses)
－
－
－
－
－
－
－
－
－
－
－
－
－
－

(2) Collateralized debt obligations (CDO)
Fair value
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

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

SeniorMezzanine
EquityCBO

SeniorMezzanine
EquityOthersSeniorMezzanine
Equity(100 millions of yen)
Unrealized
Realized gains
gains (losses)(losses)
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

(3) Other sub-prime (Alt-A exposure)
Fair value
－
－
－
－
－
－

Other sub-prime (Alt-A exposure)Non-securitized loans
RMBS
Derivatives
Commitment line
Others23

Unrealized
gains (losses)
－
－
－
－
－
－

(100 millions of yen)
Realized gains(losses)
－
－
－
－
－
－

(4) Commercial mortgage-backed securities (CMBS)
Fair value
Reference:

Unrealized
gains (losses)(100 millions of yen)
Realized gains(losses)

－
－
－
－
－
－

－
－
－
－
－
－

Unrealized
gains (losses)(100 millions of yen)
Realized gains(losses)

－
－
－
－
－
－

－
－
－
－
－
－

As of March 31, 2013

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

－
－
－
－
－
－

－
－
－
－
－
－

(5) Leveraged financeFair value
Reference:
As of March 31, 2013

Leveraged financeTelecommunications
Electronics
Entertainment
Services
Others

－
－
－
－
－
－

－
－
－
－
－
－

(6) Other notes
Sony Life holds principal protected 30 year notes with Nikkei 225 index-linked coupons (fair market value of ¥56.0 billion andunrealized gains of ¥12.2 billion as of March 31, 2014). These amounts are included in net unrealized gains on other securities,(before taxes) of Sony Life as of March 31, 2014.

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