Presentation Material

Consolidated Financial Results
for the Six Months Ended September 30,
30 2015
and
S
Sony
Lif
Life’s’Market Consistent Embedded Valueas off SeptemberS
b 30,
30 201
2015

Sony Financial Holdings Inc.
N
Novemberb 12,
12 2015
Sony Financial Holdings Inc. All Rights Reserved

Content
 Consolidated Operating Results for the Six Months Ended September 30, 2015

(FY15.1H)

P.3

 ConsolidatedC
lid t d Fi
Financiali lF
Forecastt ffor th
the YYear E
Endingdi March
M h 31,31 2016 (FY15)

P 29
P.29

 Sony Life’s MCEV and Risk Amount Based on Economic Valueas of September 30, 2015
 Appendix

P.31
P.34

Disclaimers:
This ppresentation material contains statements concerning
g the current pplans, expectations,pstrategiesgand beliefs of the Sonyy Financial Group.
p Anyystatements contained herein that pertain to future operating performance and that are not historical facts are forward-looking statements. Forwardlooking statements may include—but are not limited to—words such as “believe,” “anticipate,” “plan,” “strategy,” “expect,” “assume,” “forecast,” “predict,”“propose,” “intend” and “possibility” that describe future operating activities, business performance, events or conditions. Forward-looking statements,
whether spoken or written, may also be included in other materials released to the public. These statements are based on assumptions, decisions andjudgments 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
uncertainties, and actual business results may vary substantially from the forecasts expressed or implied inforward-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 in light of new information, future events or other findings. The information
contained in this 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 inJapan or abroad.
*Unless otherwise indicated, in these materials figures less than the indicated unit have been truncated, while ratios and percentage changes have been rounded.
Also, a “–” is used where percentage changes exceed 1,000% and in cases where one or both comparisons are negative.
* “Lifeplanner” is a registered trademark of Sony Life.

Sony Financial Holdings Inc. All Rights Reserved2Consolidated Operating Results for
the Six Months Ended September 30, 2015
(FY15 1H)
(FY15.1H)

Sony Financial Holdings Inc. All Rights Reserved3Management Message
 In FY15.1H, consolidated ordinary revenues increased in all three corebusinesses. Sony Life’s new policy amount rose significantly,
exceedingg the record highg amount posted
pin FY14.1H,, and its businessvolume has been steadily expanding.
 Consolidated ordinary
y profit was down substantiallyyyyear on yyear, andcompared with our initial forecast. This decrease reflected Sony Life’s
substantial increase in the provision of policy reserves for minimum
guarantees for variable life insurance, as well as increased expenses atthe beginning of the policy period incurred by strong sales of newpolicies.
 GivenGi
theth consolidated
lid t d ordinarydiprofitfit results
lt ini FY15.1H,
FY15 1H we revisedi d

our full-year profit forecast downward. Although profit was down
substantially at the beginning of the policy period due to higher sales
off variable
i bl life
lif insurance,ithisthi will
ill contributet ib t to
t futuref tearnings
i
growth.
th As our medium-term profit outlook remains unchanged, we maintainour initial dividend forecast for FY15 (¥55 per share)share).
Sony Financial Holdings Inc. All Rights Reserved

4Highlights of Consolidated Operating Performancefor FY15.1H (1)Consolidated ordinary revenues
Consolidated ordinary profit
Life
Insurancebusiness

643.0

+3.0%

Non-life
Insurancebusiness

662.2

Bankingbusiness
Intersegmentgadjustments*(38.6%)

46.9
FY14.1H

FY14.1H

FY15.1H

Ordinary revenues

579.4

596.4

+16.9

+2.9%

Ordinary profit

40.1

22.5

(17.5)(43.8%)

Ordinary revenues

46.4

48.2

+1.8

+4.0%

Ordinary profit

3.4

2.7

(0.6)

(19.9%)

Ordinary revenues

18.6

19.0

+0.3

+2.0%

Ordinary profit

3.2

3.4

+0.1

+4.3%

(1.4)

(1.4)

+0.0

－

0.1

0.1

+0.0

+2.4%

Ordinary revenues

643.0

662.2

+19.2

+3.0%

Ordinary profit

46.9

28.8

(18.1)(38.6%)

Profit attributableto owners of theparent31.1

19.1(12.0)(38.6%)(Billions of yen)

28.8
FY15.1H(Billions of yen)

Ordinary revenues
Ordinary profit

ChangeConsolidated*OrdinaryOrdinary profit in “Intersegment
Intersegment adjustments
adjustments” is mainly from SFH
SFH.
*Comprehensive income : FY14.1H: ¥44.7 billion, FY15.1H: ¥16.4 billion

Change from
15.3.3115.3.3115.9.30

Net assets

550 6
550.6

549 7
549.7

(0 9)
(0.9)

(0 2%)(0.2%)

Total assets

9,545.8

9,945.3+399.4+4.2%(Billions of yen)

Consolidated

Sony Financial Holdings Inc. All Rights Reserved

5Highlights of Consolidated Operating Performancefor FY15.1H (2)Life Insurance Business: Policy amount in force increased steadily, reflecting a record-high new policy
amount for this period (April 1 to September 30). Ordinary revenues increased year on year due to anincrease in income from insurance premiums despite deteriorated investment performance in theseparatet accountt as a result
lt off worsenedd financial
fi
i l market
k t conditions.
ditiO
Ordinarydiprofitfit ddecreaseddsignificantly year on year. This is due to a substantial increase in provision of policy reserves for minimum
guarantees for variable life insurance as a result of an increase in new policy amount and worsened
financial market conditions, partially offset by an increase in gains on sale of securities in the generalaccount.
t Moreover,Miincreasedd expenses iincurreddb
by strongtsales
l off new policies
li i andd hihigherh paymentt on
insurance claims also contributed to the decrease in ordinary profit.
Non-life Insurance Business: Ordinary revenues expanded year on year, owing to an increase in net
premi ms written
premiums
ritten primaril
primarily for mainsta
mainstay a
automobile
tomobile insurance.
ins rance Ordinary
Ordinar profit decreased year
ear on year
ear
mainly due to a rise in operating expenses despite the increase in ordinary revenues.
Banking Business: Both ordinary revenues and ordinary profit increased year on year, mainly due tohigher revenues related to mortgage loan and foreign currency transactionstransactions.
Consolidated ordinary revenues increased 3.0% year on year, to ¥662.2 billion, owing to increases inordinary revenues from all the businesses: life insurance, non-life insurance and banking. Consolidated
ordinary profit decreased 38.6%
38 6% year on year
year, to ¥28¥28.8
8 billion
billion. By business segment
segment, ordinary profit fromthe banking business increased, whereas ordinary profit from the life insurance and the non-life insurance
businesses decreased. Profit attributable to owners of the parent was down 38.6% year on year, to ¥19.1
billion due to the decrease in ordinary profit.

Sony Financial Holdings Inc. All Rights Reserved

6

Highlights of Operating Performance:
Sony Life (Non-consolidated)
Ordinary revenues

579.3

40.4
FY14.1H

Ordinary profit+2.9%(43.4%)(Billions of yen)

596.3

22.8

FY15.1H(Billions of yen)

◆ Ordinary revenues increased but ordinary profit decreased
year on year.
◆ Income from insurance premiums increased year on year,
reflecting a steady increase in policy amount in force.
◆ Investment income decreased due to deteriorated
investment performance in the separate account despite anincrease in interest income and dividends in the generalaccount.
◆O
Ordinaryd aypprofito t dec
decreased
eased yea
year oon yeayear due to a substa
substantialtaincrease in provision of policy reserves for minimum
guarantees for variable life insurance as a result of anincrease in new policy amount and worsened financial
market conditions, partially offset by an increase in gains
on sale of securities in the general account. Moreover,increased expenses incurred by strong sales of newpolicies and higher payment on insurance claims also
contributed to the decrease in ordinary profit.

ChangeFY14.1H

FY15.1H

579.3

596.3

+16.9

+2.9%

Income from insurance premiums

454.0

508.7

+54.7

+12.1%

Investment income

120 8
120.8

84 4
84.4

(36 4)(36.4)(30 1%)(30.1%)

Interest income and dividends

65.8

69.8

+3.9

+6.0%

Income from monetary trusts, net

2.6

6.1

+3.5

+133.8%

Gains on sale of securities

3.8

6.5

+2.7

+69.5%

Gains on separate accounts, net

46.4

-

(46.4)(100.0%)

538.9

573.4

+34.5

+6.4%

Insurance claims and other payments

173.0

173.1

+0.0

+0.1%

Provision for policy reserves and others

293.6

287.2

(6.4)

(2.2%)

4.5

35.6

+31.1

+681.2%

-

31.9

+31.9

-

56.8

65.6

+8.7

+15.4%

Ordinary
yp
profit40.4

22.8((17.5))((43.4%))

Net income

26.9

14.8

(12.0)(44.9%)

15.3.3115.9.30

Change from 15.3.31

Securities

6,543.7

6,899.6+355.9+5.4%

Policy reserves

6,727.2

7,013.5+286.2

+4.3%

432.5

432.3

(0.2)

(0.0%)

118.1

117.7

(0.3)

(0.3%),
7,301.3

7,758.8,+457.5

+6.3%

793.3

796.6

+3.2

+0.4%

Ordinary revenues

Ordinary expenses

Investment expenses
Losses on separate accounts, net
Operating expenses(Billions of yen)

Net assets
Net unrealized gains on other securities
Total assets
Separate account assets

Sony Financial Holdings Inc. All Rights Reserved

7

Overview of Operating Performance:
Sony Life (Non-consolidated)
FY14.1H

FY15.1H

2,127.3

2,615.0+22.9%

Lapse and surrender amount

862.5

951.5

+10.3%

Lapse and surrender rate

2.21%

2.33%

+0.12pt

Policy amount in force

39,952.7

42,143.0+5.5%Annualized premiums from new policies

36.2

43.0

+18.9%Of which,which third
third-sector
sector products

65
6.5

73
7.3

+12 0%+12.0%

715.4

759.1

+6.1%

169.7

176.1

+3.7%

(Billions of yen)

New policy amount

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

ChangeNotes:o es
1. Figures for new policy amount, lapse and surrender amount, lapse and surrender rate, policy amount in force, annualized
premiums from new policies and annualized premiums from insurance in force are calculated as the total of individual life
insurance and individual annuities.
2. 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.

(Billions of yen)

FY14.1H

FY15.1H

Gains from investment, net (General account)

69.8

80.7

+15.7%

Core profit

38.5

14.4

(62.5%)

Positive spread

55
5.5

73
7.3

+32 7%+32.7%

Non consolidated solvency margin ratio
Non-consolidated

Change15.3.3115.9.30

Changefrom15.3.31

2 555 0%2,555.0%

2 657 7%2,657.7%+102 7pt+102.7pt

Sony Financial Holdings Inc. All Rights Reserved<Reasons for changes>◆ Increased due to higher sales ofvariable life insurance and family
income insurance.

◆ Increased due to higher sales ofvariable life insurance.

◆ Decreased year on year due to a
substantial increase in provisionof policy reserves for minimum
guarantees for variable life
insurance as a result of anincrease in new policy amountand worsened financial market
p highergppositive
conditions despite
spread. Moreover, increased
expenses incurred by strong
sales of new policies and higher
payment on insurance claims
also contributed to the decreasein core profit.

8

Operating Performance :Sony Life (Non-consolidated) (1)
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

Annualized premiums from new policies

Of which, third-sector(Thousands ofpolicies)(Trillions of yen)

30,000327(Billions of yen)
en)

43.0

286

3.0

25,000+14 5%+14.5%

2.61

300
40

246
2 12
2.12

20,000

2.0

1.87

36.2
+18 9%+18.9%+22.9%

200

30

30.1

15,00020
10,000
1.0

100
10

5 000
5,000

0

0

FY13.1H

FY14.1H

FY15.1H

6.9

6.5

FY13.1H

FY14.1H+12.0%

7.3

0Sony Financial Holdings Inc. All Rights Reserved

FY15.1H

9

Operating Performance :Sony Life (Non-consolidated) (2)
Number and Amount of Policies in Force

Annualized Premiums from Insurance in Force(Individual Life Insurance + Individual Annuities)(Individual Life Insurance + Individual Annuities)

Policy amount in force(Trillions of yen)

50

40

+5.8%

6.49
39.9

+5.5%

Annualized premiums from insurance in force

Number of policies in force

6.87
6.67

+3.0%

40.9

(Millions of policies)(Billions of yen)

7

42.1
+2.8%

800

715.4

+6 1%
+6.1%

759.1

735 7
735.7

6
5

30

Of which, third-sector

+3.2%

600

4
400
3

20

2

200

10
1
0

0
14.9.30

15.3.3115.9.30

+3.7%

169 7
169.7

172 8
172.8

14.9.30

15.3.31

+1.9%
1 9%

176 1
176.1

0

Sony Financial Holdings Inc. All Rights Reserved

15.9.30

10

Operating Performance :Sony Life (Non-consolidated) (3)Lapse and Surrender Rate*(Individual Life Insurance + Individual Annuities)
Lapse andLd surrenderd ratet(Annual)

Lapse andLd surrenderd rate
t
(1H)

(%)

10

8

6

4.61

5.35

4
+0.12ｐｔ

2

2.32

2 21
2.21

FY13

FY14

2 33
2.33

0
FY15

*The lapse and surrender rate shows the ratio derived by dividing the amount oflapses and surrenders, not adjusted for policy amount decreases, increases, andreinstatements, by the policy amount in force at the beginning of the fiscal year.

Sony Financial Holdings Inc. All Rights Reserved

11

Operating Performance :Sony Life (Non-consolidated) (4)Income from Insurance Premiums(Billions of yen)

508.7

500

437.9

454.0

Interest Income and Dividends(Billions of yen)70

+12.1%

60

400

65.8

+6.0%

69.8

58.9

50
300
40
30

200

20
100
10
0

0
FY13.1H

FY14.1H

FY15.1H

FY13.1H

Sony Financial Holdings Inc. All Rights Reserved

FY14.1H

FY15.1H

12

Operating Performance :Sony Life (Non-consolidated) (5)Core Profit

Ordinary Profit((Billions of yyen))(Billions of yen)

38.5

40

40.4

40

33.5

31 3
31.3

30

30
(43.4%)

20(62.5%)

22.8

20

14 4
14.4

10

10

0
FY13.1H

FY14.1H(Reference) Impact on core profit
Positive spread
Provision of policy reserves for minimum guarantees
for variable life insurance (*1)
Effects by the revision of policy reserve discount rate
(Interest rate-sensitive whole life insurance ) (*2)

0

FY15.1H

FY13.1H(Billions of yen)

FY13.1HFY13
1H FY14.1H
FY14 1H FY15.1H
FY15 1H
3.3
5.5
7.3
(1.2)

(2.5)

(22.1)

(5.7)

-

-

FY14.1H

FY15.1H(Reference) Main differences from core profit(Billions of yen)

FY13 1H
FY13.1H
Capital gains (losses) excluding gains
or losses on hedges (*1)
Gains (losses) on hedges of variable
life insurance
Provision of contingency reserve (*1)

FY14 1H
FY14.1H

FY15 1H
FY15.1H

(0.0)

4.4

10.3

-

-

1.4

(2.1)

(2.4)

(3.1)

*1: “Provision of policy reserves for minimum guarantees for variable life insurance” and “Provision of contingency reserve” are described as negative amount.
Capital gains (losses) exclude gains or losses on hedges of variable life insurance.
*2: The effected amount of a surge of sales of interest rate-sensitive whole life insurance due to a delay in rising insurance premiums (May 2013) against the revision of policy reserve discountrate .

Sony Financial Holdings Inc. All Rights Reserved

13

Operating Performance :Sony Life (Non-consolidated) (6)
Number of Lifeplanner Sales Employees+167(Number)

4,500

4,216
[138]

4,228
[146]

4,248
[[150]]

14.3.3114.6.30

14.9.30

4,216
[155]

4,329
[161]

4,415
[183]

4,352
[174]
+63
63

4,000

3 500
3,500

3,000
0

14.12.31

15.3.3115.6.30

15.9.30

Note: Figures in [ ] show the numbers of Lifeplanner sales employees (rehired on a fixed-term contract basis after retirement) included in the overall
numbers, those who have reached retirement age but who continue to work as Lifeplanner sales employees that meet certain sales conditions
and other requirement.

Sony Financial Holdings Inc. All Rights Reserved

14

Operating Performance :Sony Life (Non-consolidated) (7)Breakdown of General Account Assets
15.3.3115.9.30<Asset management review>(Billions of yen)Amount%Japanese governmentand corporate bonds

5,606.8,

86.2%

6,027.4,

86.6%

Japanese stocks

42.4

0.7%

34.0

0.5%

Foreign bonds

105.5

1.6%

66.0

0.9%

Foreign stocks

26.0

0.4%

25.5

0.4%

Monetary trusts

313.2

4.8%

289.1

4.2%

Policy loans

162.3

2.5%

167.8

2.4%

Real estate*

117.7

1.8%

116.8

1.7%

Cash and call loans

56.8

0.9%

153.9

2.2%

Others

76.7

1.2%

81.3

1.2%

6 508 06,508.0

100 0%
100.0%

6 962 2
6,962.2

100 0%
100.0%

Total

Amount%We have continued to accumulate ultralongterm bonds to match the liability
characteristics of insurance policies with longt
term
maturities
t iti with
ith theth aimi off reducing
d iinterest rate risk.
<Bond duration>
Mar. 31, 2014: 19.7 years
Mar. 31, 2015: 20.3 years
Sep. 30, 2015: 20.4 years■ Investment in the monetary trusts is mainly into
Japanese government and corporate bonds.
■ The holding ratio on the real status of Japanese
government and corporate bonds including
those invested in monetary trusts in the generalaccount assets: As of Sep. 30, 2015: 90.8%(As of Mar. 31, 2015: 91.0%)*Real estate is the total of land, buildings, and construction in progress.

Sony Financial Holdings Inc. All Rights Reserved

15

Operating Performance :Sony Life (Non-consolidated) (8)Non-consolidated Solvency Margin Ratio

(%)

3,000

2,657.7
2,555.0
2,500

2,358.7+102.7pt

2,000

1,500

1,000
0
14.3.3115.3.3115.9.30

Sony Financial Holdings Inc. All Rights Reserved

16

Operating Performance :AEGON Sony Life Insurance*AEGON Sony Life Insurance sells individual variable annuities.

Number and Amount of Policies in Force

Number and Amount of New Policies
New policy amount(Billions of yen)

Policy amount in force

Number of new polices [ ](Thousands(Thdof policies)

83.3[14.3]

15

80(Billions of yen)

500
390.4
[63.5]

63.8[10.8]
[10
8]

400

60

Number of policies in force [ ]

10

417.1
[68.5}

298 2
298.2[48.5](Thousandsof policies)

80

60

300

36.6
[6.1]

40

40

200
5

20

20

100

0

0
FY13.1H

FY14.1H

0

FY15.1H

0
14.9.30

15.3.3115.9.30

Net income (losses) for AEGON Sony Life Insurance and SA Reinsurance
FY14.1H

FY15.1H

ChangeAEGON Sony Life Insurance

(2.4)

(0.7)

+1.7

SA Reinsurance

1.7

(0.0)

(1.7)

AEGON Sony Life Insurance and SA Reinsurance are equity method companies, 50-50 joint venture established by Sony Life and AEGON Group.
SA Reinsurance prepares its financial statements in accordance with U.S. GAAP. 50% of the net income (losses) for AEGON Sony Life Insurance and SA Reinsurance are recognized as
investment profit (losses) on equity method in the SFH’s profit attributable to owners of the parent.

Sony Financial Holdings Inc. All Rights Reserved

17Highlights of Operating Performance:
Sony Assurance
Ordinary revenues

Ordinary profit

FY14.1H

FY15.1H

46.4

48.2

+1.8

+4.0%

Underwriting income

45.7

47.6

+1.8

+4.0%

Investment income

0.6

0.6

+0.0

+2.3%

42.9

45.4

+2.5

+5.9%

Underwriting expenses

32.0

33.4

+1.4

+4.5%

Investment expenses

0.0

0.0

+0.0

―

Operating general andadministrative expenses

10.9

12.0

+1.0

+9.9%

Ordinary profit

3.4

2.7

(0.6)

(19.9%)Net income

2.3

1.9

(0.4)

(16.8%)(Billions of yen)

46.4

+4.0%

48.2

Ordinary revenues

Ordinaryy expenses
p(19.9%)

3.4

FY14.1H

2.7

FY15.1H(Billions of yen)

◆ Ordinary revenues increased but ordinary
profit decreased year on year.
◆ Ordinary revenues expanded year on year,
owing to an increase in net premiums written
primarily for mainstay automobile insurance.
◆ Ordinary profit decreased year on year mainly
due to a rise in operating expenses despite
the increase in ordinary revenues.

(Billions of yen)

15.3.3115.9.30

ChangeChange from
15.3.31

Underwriting reserves

86.5

91.3

+4.8

+5.6%

Net assets

24.7

27.2

+2.4

+10.0%

Total assets

157.9

164.9

+6.9

+4.4%

Sony Financial Holdings Inc. All Rights Reserved

18

Overview of Operating Performance:
Sony Assurance(Billions of yen)

FY14.1H

FY15.1H

ChangeDirect premiums written

45.0

46.9

+4.2%

Net premiums written

45.7

47.5

+4.0%

Net losses paid

22.4

23.0

+2.7%

Underwriting profit

2.8

2.1

(24.6%)Net loss ratio

56.4%

55.9%

(0.5pt)Net expense ratio

25.4%

26.7%

+1.3ptCombined ratio

81.8%

82.7%

+0.9pt<Reasons for changes>◆ Increased mainly in its mainstay
automobile insurance.

◆ Increased mainly due to higher
advertising expenses.

Notes:Net loss ratio = (Net losses paid + Loss adjustment expenses ) / Net premiums written
Net expense ratio = Expenses related to underwriting / Net premiums written

FY14.1H

FY15.1H

ChangeE. I. loss ratio

62.4%

62.4%

+0.0ptE. I. loss ratio +Net expense ratio

87.8%

89.1%

+1.3pt◆ Remained at the same levelreflecting persistently low car
accident
id t ratio.
tiNotes:
Earned/Incurred (E.I.) loss ratio = (Net losses paid + Provision for reserve for outstanding losses + Loss adjustment expenses) / Earned premiums[Earthquake insurance and compulsory automobile liability insurance are excluded from the above calculation.]

Number of policies in force
Non-consolidated
Nonconsolidated
solvency margin ratio

15.3.3115.9.30

Change from 15.3.31

1.70 million

1.75 million+0.05 million

629.6%

676.7%+3.1%+47.1pt

Note: The number of policies in force is the total of automobile insurance and medical and cancer insurance, which accounts for 99% of net premiums written.

Sony Financial Holdings Inc. All Rights Reserved19Sony Assurance’s Underwriting Performanceby Type of Policy
Net Premiums Written

Direct Premiums Written
FY14.1H

FY15.1H

ChangeFY14.1H

FY15.1H

Change

Fire

16

28

+73.5%

Marine8422(73.7%)(Millions of yen)

(Millions of yen)

Fire

119

199

+66.2%

Marine－－－Personal accident

4,277

4,321

+1.0%

Personal accident

4,411

4,461

+1.1%

Voluntary automobile

40,67142,442+4.4%

Voluntary automobile

40,56842,349

+4.4%

－

－

－

Compulsory
automobile liability

671

712

+6.2%

45,06946,963+4.2%,
45,75247,574,+4.0%

Compulsory
automobile liability
Total

Total

*Medical and cancer insurance is included in personal accident.

Net losses paid
FY14.1H

FY15.1H

ChangeFire20(65.9%)

Marine73100+36.4%

Personal accident

1 128
1,128

1 207
1,207

+7 1%
+7.1%

Voluntary automobile

20,61621,096+2.3%

Compulsory
automobile liability

601

628

+4.6%

Total

22,42023,033+2.7%(Milli(Millions
off yen))Sony Financial Holdings Inc. All Rights Reserved

20

Operating Performance:
Sony Assurance (1)Ordinary Profit andAdjusted Ordinary Profit

Net Premiums Written andNumber of Policies in Force
Voluntary automobile insurance
Personal accident insurance
Number of policies in force
Others((Billions of yen)y )5Ordinaryy p
profitAdjustedjordinary
yp
profit(12.8%)

4.8(Billions of yen)

50

1.57
44.2

+5.8%

1.65
45.7

+4.0%

1.75
47.5

(Millions ofpolicies)

4.2

4

3.4
0.7

4.4

1.5

3

2.8

(19.9%)

3.3

2.7

40
2
1

30

42.3
1

20
0.5
0

10

FY13 1H
FY13.1H

FY14 1H
FY14.1H

FY15 1H
FY15.1H*Adjusted ordinary profit = Ordinary profit + Provision for catastrophe reserve

00
FY13.1H

FY14.1H

FY15.1H

The number of policies in force is the total of automobile insurance and medical
and cancer insurance policies, which account for 99% of net premiums written.
More than 90% of personal accident insurance is medical and cancer insurance.

(Reference) Provision for catastrophe reserve(Billions of yen)

FY13.1H
Provision for catastrophe reserve

FY14.1H

0.4

1.4

FY15.1H
1.5*Provision for catastrophe reserve is described as positive amountSony Financial Holdings Inc. All Rights Reserved

21

Operating Performance:
Sony Assurance (2)＜参考＞ (Reference) Combined Ratio

Earned/Incurred Loss Ratio +Net Expense Ratio
E
Earned/Incurredd/Id loss
l
ratio
ti
(%)
100

93.8

N t loss
Net
l
ratio
ti

N t expense ratio
Net
ti

91.0

90.5

89.1

87.8
+1.3pt

68.2

65.9

62.4
0.0pt

64.3

84 9
84.9

84.3

84.2

80

62.4

82.7

81.8
+0.9pt

60

59.6
59.3

57.6

25.6

26.7

FY13

FY14

56.4 (0.5pt)

55.9

40

40

20

N t expense ratio
Net
ti

(%)
100

80

60

(Net Loss Ratio+ Net Expense Ratio)

25.6

26.7

20

+1.3pt

24.6

25.4

26.7

FY13.1H

FY14.1H

FY15.1H+1.3pt

24.6

25.4

26.7

FY13.1H

FY14.1H

FY15.1H

0

0
FY13

FY14

Notes:
Earned/Inc rred loss ratio = (Net losses paid + Provision
Earned/Incurred
Pro ision for reserve
reser e for outstandingo tstanding
losses + Loss adjustment expenses) / Earned premiums[Earthquake insurance and compulsory automobile liability insurance are excluded
from the above calculation.]

Notes:Net loss ratio = (Net losses paid + Loss adjustment expenses) / Net premiums written
Net expense ratio = Expenses related to underwriting / Net premiums writtenSony Financial Holdings Inc. All Rights Reserved

22

Operating Performance:
Sony Assurance (3)Non-consolidated Solvency Margin Ratio

(%)

800

629.6%
600

527.6%

676.7%+47.1pt

400

200

0
14.3.3115.3.3115.9.30

Sony Financial Holdings Inc. All Rights Reserved

23

Highlights of Operating Performance:
Sony Bank (Consolidated/Non-consolidated)
Consolidated ordinary revenues
Consolidated ordinary profit<Consolidated>
FY14.1H

FY15.1H

Consolidated ordinary revenues

18.6

19.0

+0.3

+2.0%

Consolidated ordinary profit

32
3.2

34
3.4

+0 1
+0.1

+4 3%
+4.3%

Profit attributable to owners of theparent

2.0

2.2

+0.1

+9.0%

FY14.1H

FY15.1H

Ordinary revenues

17.3

17.5

+0.2

+1.4%

Gross operating profit

10.6

10.9

+0.3

+3.1%

Net interest income

8.2

8.0

(0.2)

(2.7%)Net fees and commissions

(0.3)

0.2

+0.5

-

Net other operating income

2.6

2.7

+0.0

+1.7%

General and administrative expenses

7.5

7.6

+0.1

+1.6%

Net operating profit

3.1

3.3

+0.2

+6.5%

Ordinary profit

3.2

3.3

+0.1

+4.3%

Net income

2.0

2.2

+0.1

+8.9%

15.3.3115.9.30

77.0

76.1

(0.8)

(1.1%)

6.6

3.3

(3.2)

(49.3%)

2,062.5

1,998.3(64.1)(3.1%)(Billions of yen)

18 6
18.6

+2.0%

19.0

Change<Non-consolidated>

3.4

+4.3%

3.2

FY14.1H

FY15.1H(Billions of yen)<Consolidated>◆Ordinary revenues and ordinary profit increased year on year,
due to higher revenues related to mortgage loan and foreign
currency transactions.
<Non-consolidated>◆ Both gross operating profit and net operating profit increased
year on year.
・Net interest income decreased, due to lower interest income
and dividends on securities.
・Net fees and commissions increased, due to higher fees on
mortgage loans.
・Net other operating income increased, due to higher gains on
foreign exchange transactions stemming from customers’
customers
active trading whereas gains on the bond-dealing transaction
was recorded in the same period of the previous fiscal year.

(Billions of yen)(Billions of yen)

Net assets
Net unrealized gains onotherth securities,
iti
nett off ttaxes
Total assets

Sony Financial Holdings Inc. All Rights Reserved

ChangeChange from
15.3.3124

Overview of Operating Performance:
Sony Bank (Non-consolidated) (1)14.9.30

15.3.31

Change from
15.3.3115.9.30((Billions of yyen))

Customer assets

1,945.2

2,007.9

1,915.7(92.1)(4.6%)

Deposits

1,824.6

1,878.2

1,795.2(83.0)(4.4%)

Yen

1 483 81,483.8

1 551 01,551.0

1,476.4(74 6)(74.6)(4 8%)(4.8%)

340.8

327.2

318.7

(8.4)

(2.6%)

120.5

129.6

120.5

(9.1)

(7.0%)

1 092 1
1,092.1

1 187 1
1,187.1

1 266 7
1,266.7

+79 5
+79.5

+6 7%
+6.7%

Mortgage loans

983.2

1,074.3

1,154.4

+80.0

+7.5%

Others

108.8

112.8

112.3

(0.4)

(0.4%)

Number of accounts

1.01
million1.05
million1.08
million+0.02
million+2.1%

Non-performing assets ratio*2(Based on Financial
Reconstruction Law)

0.32%

0.28%

0.25%

(0.03pt)

Capital adequacy ratio *3(domestic criteria)

11.80%

10.66%

10.59%(0.07pt)

Foreign currency
Investment trusts
L
Loans

*1

<Reasons for changes>◆ Yen deposit balance decreased
reflecting severe interest ratecompetitions for yen time deposits.

◆ Yen-denominated balance of foreign
currency deposit decreased due toyen appreciation.

◆ Loan balance expanded reflecting
a growing balance of mortgage loans.

*1 Loans in others include corporate loans of ¥106.0billion*2 Non-performingpg loans ((loans based on the Financial Reconstruction Act)) /Total loan exposurep*3 Please refer to the graph of the non-consolidated capital adequacy ratio (domestic criteria) on P28.

Sony Financial Holdings Inc. All Rights Reserved25Overview of Operating Performance:
Sony Bank (Non-consolidated) (2)<Reference> On Managerial Accounting Basis<Reference> Interest Spread(Managerial Accounting Basis)

FY14.1H

FY15.1H

10 6
10.6

10 9
10.9

+0 3
+0.3

+3 2%
+3.2%

9.0

9.1

+0.1

+1.6%

0.0

0.7

+0.6

―

1.5

1.0

((0.5))((32.7%))Gross operating profit (core profit)(A)＝①＋②

9.0

9.9

+0.8

+9.3%

Operating expenses and otherexpenses
③

7.4

7.6

+0.2

+3.6%

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

1.6

2.2

+0.5

+34.5%(Billions of yen)

Gross operating profit
Net interest income*1①

Net fees and commissions*2g income
Net other operating②*3

Change■Managerial accounting basisg adjustmentsjare made to the figuresgon a financial account for p
profits and
The following

Yield on investment

Yield on financing

Interest spread
(%)

1.5
1.20
0.91

1

1.18
0.00pt

0.91
0.91

0.5
0.28

0.27

FY14.1H

FY15.1H

losses 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 consists ofprofits and losses for bond and derivative dealing transactions.

0Note: Interest spread=(Yield on investment)-(Yield on financing)■Core profit
Profits and losses exclude net other operating income, which includes those on bond andderivative dealing transactions, and stands for Sony Bank’s basic profits.

Sony Financial Holdings Inc. All Rights Reserved

26

Operating Performance:
Sony Bank (Non-consolidated) (1)Loans

Deposits
Yen depositspForeigng currency
y depositspMortgageg g loans

Others(Billions of yen)(Billions of yen)

1,500
2,000

1,890.0,

1,878.2
,

363.5

327.2

1,187.1(83.0)

1,057.4

318.7

1,500

1,000

1 266 7
1,266.7

1 795 2
1,795.2

1,000,
1,526.4

1,551.0

112.8

+79.5

*corporate loansof ¥106.0 billion

108.1

1,074.3

1,476.4

112.3

1,154.4

949.3

500
500

0

0
14.3.3115.3.3115.9.30

14.3.31Sony Financial Holdings Inc. All Rights Reserved

15.3.3115.9.30

27

Operating Performance:
Sony Bank (Non-consolidated) (2)Non-Consolidated Capital Adequacy Ratio

Balance of Securities by Credit Rating
AAA
BBB(Domestic Criteria)

AA
A
Others(Billions of yen)

(%)
15

1,000

800

773.8

11.72
730.0

10.66
632 2
632.2
(97.7)

600(0.07pt)

10.59

10

400
5

200

0

0
14.3.3115.3.3115.9.30

14.3.3115.3.3115.9.30*Calculated based on the standard FSA Notification No. 19 (2006), which
establishes standards based on Article 14-2 of the Banking Act of Japan for
determining the capital adequacy of a bank in light of the assets held by the bank.

Sony Financial Holdings Inc. All Rights Reserved28

Consolidated Financial Forecast
for the Year Ending March 31, 2016
(FY15)

Sony Financial Holdings Inc. All Rights Reserved29Consolidated Financial Forecast for FY15
SFH revisedi d its
i forecastfupwardd forf consolidated
lid d ordinarydirevenues but
b downwarddd for
f consolidated
lid d ordinarydiprofitfi
and profit attributable to owners of the parent, from the forecast announced on April 30, 2015.
FY14(Actual)(Billions of yen)

FY15
(Forecast)

ChangeFY15.1H(Actual)Progress rate

Consolidated ordinary revenues

1,352.3

1,300.0⇒1,340.0(3.9%)⇒(0.9%)

662.2

49.4%

Life insurance business

1,223.9

1,168.0⇒1,212.8(4.6%)⇒(0.9%)

596.4

49.2%

Non-life insurance business

93.0

97.1

+4.4%

48.2

49.7%

Banking business

38 4
38.4

36 8
36.8

(4 2%)(4.2%)

19 0
19.0

51 7%
51.7%

Consolidated ordinary profit

90.0

85.0⇒72.0(5.6%)⇒(20.1%)

28.8

40.0%

Life insurance business

78.3

74.1⇒61.4(5.4%)⇒(21.6%)

22.5

36.8%

Non-life insurance business

4.2

4.4

+4.5%

2.7

62.5%

Banking business

7.3

6.4

(12.7%)

3.4

53 3%
53.3%

54.4

57.0⇒47.0+4.7%⇒(13.6%)

19.1

40.7%

Profit attributable to owners of the parent■Life insurance business
Ordinary revenues for the full-year forecast have been revised upward due to better-than-expected first half results.
The reasons for the downward revision for ordinary profit are as follows.
●During the first half, provision of policy reserves for minimum guarantees for variable life insurance substantially exceeded our expectations at
the beginning of the fiscal year due to strong sales of new policies, especially in variable life insurance, and worsened financial market
conditions.
●The forecast for the second half of the fiscal year has been virtually unchanged as the following two reasons offset each other.
(1)Gains on sale of securities are expected to exceed our initial forecast as a result of the shift to investing in bonds with ultralong-term maturity.
(2)Provision of policy reserves for minimum guarantees for variable life insurance may continue to exceed our initial forecast.
■Non-life insurance businessWe have stayed our full-year forecast unchanged because the operating results in the first half were nearly the same as our initial forecast, and we
expect this trend to continue in the second half.
■Banking businessWe have stayed our full-year forecast unchanged because we expect higher operating expenses in the second half although revenues related to
mortgage loan and foreign currency transactions for the first half exceeded our initial expectations.

Sony Financial Holdings Inc. All Rights Reserved30Sony Life’s MCEV and
Risk Amount Based on Economic Valueas of September 30, 2015

Please keep in mind that the validity of these calculations of MCEV as of September 30,
30 2015,2015 has not been verified by outside specialists
specialists.
A part of the calculations of MCEV as of September 30, 2015, adopted simplified method.

Sony Financial Holdings Inc. All Rights Reserved31Sony Life’s MCEV(Billions of yen)

MCEV
Adjusted net worth

15.3.3115.9.30

Changefrom 15.3.31

Changefrom 15.6.30

1,322.9

1,388.8

1,388.2

+65.3

(0.6)

1,119.2

1,017.1

1,082.7(36.5)

+65.6

203.7

371.8

305.5

+101.8(66.3)

Value of existing business(Billions of yen)

15.6.30

15.3.3115.6.30

15.9.30

New business value

48.6 (12M)

12.5 (3M)

20.1 (6M)

New business margin

3.8%

3.2%

2.6%

Notes:
1. New business margin equals new business value divided by present value of premium income.
2. In calculating MCEV as of June 30, 2015 and September 30, 2015, Sony Life updated economic assumptions and lapse and surrender rates from March 31, 2015.

 Reasons for changes in MCEV
・MCEV as of September 30, 2015 decreased ¥0.6 billion from June 30, 2015, mainly due to a decline in interest rates despitea favorable acquisition of new policies.
・MCEV as of September 30, 2015 increased ¥65.3 billion from March 31, 2015, mainly due to a rise in interest rates and an
acquisition of new policies.
 New business value / new business margin
・New business value as of September 30, 2015 (6M) was ¥20.1 billion (¥40.2 billion / annualized).
・New business margin as of September 30, 2015 (6M) was down 0.6pt from June 30, 2015 (3M) mainly due to a decline ininterest rates and was down 1.2pt from March 31, 2015 (12M) mainly due to a change of product mix.
*Please see page 41 for changes on new business value.
*Please see page 44 for trend on JGB yields.

Sony Financial Holdings Inc. All Rights Reserved32Sony Life’s Risk Amount Based on Economic Value(Billions of yen)

15.3.3115.6.30

15.9.30

Insurance risk

724.2

732.8

752.9

Market-related risk

287.0

300.0

284.6

Of which, interest rate risk*

218.5

227.7

220.2

Operational risk

25 9
25.9

26 3
26.3

26 2
26.2

Counter party risk

1.8

2.1

3.1

Variance effect(293.4)(299.9)(300.1)

Risk amount based on economic value

745.5

761.2

766.8

(*) Interest rate risk amount excluding the variance effect within market-related risk.

(Billions of yen)

15 3 3115.3.31

15 6 30
15.6.30

15 9 30
15.9.30

MCEV

1,322.9

1,388.8

1,388.2

ESR

177%

182%

181%

Notes:
1. The risk amount based on economic value refers to the total amount of Sony Life’s risks, comprehensively examined and including insurance risk andmarket-related risk.
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, which is a similar but
modified model based on the EU Solvency II (QIS5) standard method.
3 ESR=MCEV/
3.
ESR MCEV/ Ri
Riskk amountt b
based
d on economic
i value.
l Maintained financial soundness by controlling market-related risk.
Sony Financial Holdings Inc. All Rights Reserved

33

Appendix

Sony Financial Holdings Inc. All Rights Reserved34

Recent Topics 1
AEGON Sony Life Insurance
Launch of sales: December 1, 2009
Common stock: ¥26 billion (including capital surplus of ¥13 billion)
Equity ownership: Sony Life insurance Co Ltd 50%, AEGON international B V 50%
Marketing products: Individual Variable Annuities
Sales Channels: Lifeplanner sales employees and partner Banks (22*) *As of Nov 12, 2015
SA Reinsurance Ltd
Established： October 29,, 2009
Common stock: ¥11 billion
Equity ownership: Sony Life insurance Co., Ltd. 50%, AEGON international B.V. 50%
Business： Reinsurance business*AEGONAEGON Sony Life Insurance and SA Reinsurance are equity method companies, 50
50-50
50 joint ventures established by Sony Life and AEGON Group.

Sony Bank’s Mortgage Loans through Sony Life
■Sonyy Life accounts for 21% of the balance of mortgage
g g loans as of Sep.
p 30, 2015
Sony Life accounts for 15% of the amount of new mortgage loans for FY15.1H*Sony Life started handling banking agency business in January 2008.

S
Sony
Assurance’s
A
’ A
Auto
t Insurance
I
Sold
S ld bby S
Sony Lif
Life■Sony Life accounts for 4% of new automobile policies for FY15.1H*Sony Life started handling automobile insurance in May 2001.

Sony Financial Holdings Inc. All Rights Reserved35

Recent Topics 2<Highlights for FY2015.2Q>
2015-07-01

Sony Assurance commenced operations at “Kumamoto Contact Center”

2015 07 13
2015-07-13

S
Sony
Bank
B k beganbhhandling
dli a new ttype off cardd lloans

2015-09-28

Sony Lifecare Group announced to open the first newly built nursing care home “SONARE
Soshigaya-Okura”
g y
in Aprilp 2016

2015-10-19

Sony Bank announced to commence service of “Sony Bank WALLET”, a cash card with
Visa debit function, in January 20162015-11-02

Sony Life commenced sale of a new product: “Living
Living Benefit Term Life Insurance (Living
Standard Type) “Sony Financial Holdings Inc. All Rights Reserved36Sony Life: Fair Value Information on Securities(General Account Assets)
Fair Value Information on Securities
Fair Value Information on Securities with market value (except trading-purpose securities)(Billions of yen)

Notes:
1. The above table includes monetary trusts other than trading-purpose securities.
2. Derivative financial products such as principal protected 30 year notes with Nikkei 225 index-linked coupons are included in the “Held-to-maturity securities” above.
Principal protected 30 year notes with Nikkei 225 index-linked coupons.
As of March 31, 2014; Carrying amount: ¥43.8 billion, Fair market value: ¥56.0 billion, Net unrealized gain (losses): ¥12.2 billion
As of March 31, 2015; Carrying amount: ¥44.2 billion, Fair market value: ¥57.5 billion, Net unrealized gain (losses): ¥13.2 billion
As of Sep. 30, 2015 ; None

Valuation gains (losses) on trading-purpose securities(Billions of yen)

Note: The above chart includes trading-purpose securities included in “monetary trusts,” etc.

Sony Financial Holdings Inc. All Rights Reserved37Sony Life’s Interest Income and Dividends (Details)(Millions of yen)

FY14.1H

ChangeFY15.1H

Cash and deposits
Japanese governmentand corporate bonds
Japanese stocks

00+185.3%52,73556,333

+6.8%

221

263

+19.0%

Foreign securities

4,503

3,982

(11.6%)

Other securities

278

1,041

+273.4%

Loans

2 937
2,937

3 056
3,056

+4 1%
+4.1%

Real estate

5,170

5,135

(0.7%)

32

33

+3.9%

65,87969,846+6.0%

Others
Total

Sony Financial Holdings Inc. All Rights Reserved38Sony Life’s Quarterly Trend on New Policy Amount
Quarterly Trend on New Policy Amount(Billions of yen)

1 491 6
1,491.6

1,500
1,250
1,033.3

1,290.7

FY15 1Q
FY15.1Q

FY15 2Q
FY15.2Q

1,152.5

1,135.8

1,128.3

1,324.2

991.5

1,000

886.2

841.4
750
500
250
0
FY13 1Q
FY13.1Q

FY13 2Q
FY13.2Q

FY13 3Q
FY13.3Q

FY13 4Q
FY13.4Q

FY14 1Q
FY14.1Q

FY14 2Q
FY14.2Q

FY14 3Q
FY14.3Q

Sony Financial Holdings Inc. All Rights Reserved

FY14 4Q
FY14.4Q

39

Sony Life’s Quarterly Trend on
Annualized Premiums from New Policies
Quarterly Trend on Annualized Premiums from New Policies
Annualized premiums from new policies

Of which, third-sector(Billions of yen)

25

22.3

21.8
20

18.9

18.5

18.5

17.2

16 8
16.8

20.6

15.2

15

13.2

10

5

3.9

51
5.1
3.0

3.6

2.9

3.7

2.8

3.5

3.9

3.4

FY14.4Q
Q

FY15.1Q
Q

FY15.2Q
Q

0
FY13.1Q
Q

FY13.2Q
Q

FY13.3Q
Q

FY13.4Q
Q

FY14.1Q
Q

FY14.2Q
Q

FY14.3Q
Q

Sony Financial Holdings Inc. All Rights Reserved40Sony Life’s Changes on New Business Value(Billions of yen)

FY15.2Q (3M)

(1.7) *

9.3

Sep. 30, 2015
(6M)

20.1
(2.6%) **Jun. 30, 2015
(3M)

FY15.1Q (3M)

12 5
12.5

10 8
10.8

(3.2%)**

Assumptions as of Jun. 30, 2015

Assumptions as of Sep. 30, 2015

Notes:*Effected amount by revaluating new business value as of Jun. 30, 2015 (3M) with the assumptions as of Sep. 30, 2015.
New business value decreased mainly due to a decline in interest rates.
*Figures in [ ] show new business margin.

Sony Financial Holdings Inc. All Rights Reserved

41

Method of Measuring Risk Amount
Based on Economic Value (1) Market-related Risk*1

Interest rate risk
Fluctuations in net asset
value based on economic
value in response to theshocks in the right columns.
The same applies below.

Sony Life(Reference) EU Solvency II (QIS5)

Percentage increases or decreases differ for eachcurrency and term
term.
As for measuring interest rate risk in Japanese yen,introduced principal component analysis, where yield
curve changes are disaggregated into threecomponents, parallel shift, twist and butterfly, and theyield curve is shocked by each component
component.

Percentage increases or decreases differ for eachcurrency and term but no lower than 1%(Example)
For Yen 30-year, 30% decrease(Example)
For Yen 30-year, 33% decrease (parallel shift),
28% decrease (twist), 8% decrease (butterfly)

Equity risk

Listed equities 45%, Other securities 70%

Global 30%, Others 40%*2

Real estate risk

Actual real estate 25%

Real estate 25%

Credit risk = (market value) x (risk coefficient for eachcredit rating) x duration

Credit risk

Note that durations have caps and floors, depending
on credit ratings.

Same as on the left

(Example)
Rating A: Risk coefficient (1.4%), cap (23), floor (1)Currency risk

30% downside fluctuation

25% downside fluctuation

Notes
1. Principal
p items as of Sep.
p 30, 2015.
2. Standard risk coefficients are global: 39%/other: 49%. Symmetric adjustment (an adjustment of±10% of the average value of the stock price index during a defined period in
the past) is applied; as of the QIS5 trial introduction (Dec.31, 2009), these were 30%/40%.

Sony Financial Holdings Inc. All Rights Reserved

42Method of Measuring Risk Amount
Based on Economic Value (2) Insurance Risk*1

Sony Life(Reference) EU Solvency II (QIS5)

Mortalityy risk

Mortalityy rate increases by
y 15% for each yyear elapsedpSame as on the leftLongevity risk

Mortality rate decreases by 20% for each year
elapsedSame as on the left

Lapse risk

The largest amount of these; *2

The largest amount of these;•Lapse rate increases by 50% for each year elapsed• Increases by 50% in the assumed rates of• Lapse rate decreases by 50% for each year elapsed

lapsation for Life module, 20% for Health module• 30% of policies on which surrender value is in•Decreases by 50% in the assumed rates ofexcess of best estimate liability are immediately
surrendered• 30% of policies (70% for group annuities, etc.) on

lapsation for Life module, 20% for Health module
which surrender value is in excess of best
estimate liability are immediately surrendered

Expense risk

Disability risk

Operating expenses increase by 10% for each year
elapsedRate of inflation rises by 1%

Same as on the left

Rate of occurrence increases by 35% in the first fiscal Rate of occurrence increases by 35% in the firstyear, risingi ibby 25% forf eachh year thereafterthftfi
fiscall year, rising
i i bby 25% forf eachh year thereafter.
thft
Recovery rate decreases by 20%.

Notes
1. Principal items as of Sep. 30, 2015.
2. At Sony Life, the largest amount of three options is calculated for each insurance policy

Sony Financial Holdings Inc. All Rights Reserved

43

JGB Yields

As of the end of each monthSony Financial Holdings Inc. All Rights Reserved

44

Contact:
Communications & Investor Relations Department
Sony Financial Holdings Inc.
Inc
TEL： +81-3-5785-1074

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45