February 13, 2020
Sony Financial Holdings Inc.

Summary Information on Sony Assurance’s Financial Results
for the Nine Months Ended December 31, 2019

<Contents>

1. Balance Sheets

P.2

2. Statements of Income

P.3

3. Financial Summary

P.4

4. Premiums and Losses Paid by Type of Policy

P.5

5. Non-consolidated Solvency Margin Ratio

P.6

Disclaimer:This English translation is prepared for the readers’ convenience. When there are any discrepancies between
original Japanese version and English translation version, the original Japanese version always prevails.

11. Balance Sheets(Millions of yen)
As ofDecember 31, 2019

As ofMarch 31, 2019
Assets:Cash and deposits

20,04326,501

Call loans－5,000

Securities

157,959

151,331

Tangible fixed assets

1,689

1,594

Intangible fixed assets

10,012

12,174

Other assets

18,60916,577

Deferred tax assets

11,328

11,710Total Assets

219,643

224,889

168,494

177,148

Reserve for outstanding losses and claims

40,674

41,178Underwriting reserves

127,819

135,970

13,018

7,506

Income taxes payable

1,938

939

Others11,0806,567

Reserve for employees’ retirement benefits

1,857

1,933

Reserve for employees’ bonuses

1,236

547

Reserve under the special laws

238

261

Reserve for price fluctuations

238

261

184,844

187,397

Common stock

20,00020,000Capital surplus

3,389

3,389

Retained earnings

10,46013,379Total shareholders' equity

33,84936,769Net unrealized gains (losses) on available-for-sale securities, net of taxes

949

722

Total valuation and translation adjustments

949

722

34,79837,492

219,643

224,889

Liabilities:
Underwriting reserves

Other liabilities

Total Liabilities
Net Assets:
Shareholders’ equity

Valuation and translation adjustments

Total Net Assets
Total Liabilities and Net Assets

22. Statements of Income(Millions of yen)
For the nine months ended
December 31, 2018
Ordinary Revenues

For the nine months ended
December 31, 201986,29690,52484,74888,877

84,69988,818

48

58

1,503

1,619

1,025

1,005

Gains on sale of securities

526

672

Transfer to interest and dividends on deposits of premiums

(48)

(58)

44

26

78,902

82,917

Underwriting expenses

58,41061,366Net losses paid

42,03144,968Loss adjustment expenses

6,025

6,476

Net commissions and brokerage fees

1,295

1,266

Provision for reserve for outstanding losses and claims

1,380504

Provision for underwriting reserves

7,677

8,150

0－

0－

20,49021,547

1

3

7,394

7,606

Extraordinary Gains－－

Extraordinary Losses

28

41

Losses on disposal of fixed assets

418

Provision for reserve under the special laws

23

22

Provision for reserve for price fluctuations

23

22

Income Before Income Taxes

7,365

7,565

Income Taxes—Current

2,417

2,440

Income Taxes—Deferred(332)(294)

Total Income Taxes

2,085

2,146

Net Income

5,279

5,419Underwriting income
Net premiums written
Interest and dividends on deposits of premiums
Investment income
Interest income and dividends

Other ordinary income
Ordinary Expenses

Investment expenses
Losses on sale of securities
Operating, general and administrative expenses
Other ordinary expenses
Ordinary Profit3

3. Financial Summary (Comparison to previous year)(Millions of yen)
Nine months ended
December 31, 2018

Nine months ended
December 31, 2019

YoY change(Amount)

YoY change(%)

Gross direct premiums written

83,92488,551+4,627+5.5

Direct premiums written83,924

88,551+4,627+5.5

84,74888,877+4,129+4.984,69988,818+4,119+4.9

Underwriting expenses

58,41061,366+2,956+5.1

Net losses paid

42,03144,968+2,937+7.0

Loss adjustment expenses

6,025

6,476

+451

+7.5

Net commissions and brokerage fees

1,295

1,266(28)

(2.2)

1,503

1,619+116

+7.7

1,025

1,005(20)

(2.0)

526

672

+146

+27.8

0－(0)

(100.0)0－(0)(100.0)Operating, general and administrative expenses

20,49021,547+1,057+5.2

Operating, general and administrative
expenses related to underwriting

20,435

21,494+1,059+5.2

4223(19)(44.5)

7,394

7,606+212+2.9

5,902

6,015+113+1.9

Extraordinary Gains－－－－

Extraordinary Losses

28

41+12+41.9

Extraordinary gains (losses), net(28)

(41)

(12)

－

Income Before Income Taxes

7,365

7,565+200+2.7

Income Taxes—Current

2,417

2,440+22+0.9

Income Taxes—Deferred(332)

(294)

+38

－

Total Income Taxes

2,085

2,146+61+2.9

Net Income

5,279

5,419+139+2.6

Net loss ratio56.7%

57.9%

Net expense ratio

25.7%

25.6%

Adjusted ordinary profit

10,0799,939(140)(1.4)

E.I. loss ratio

61.5%

62.2%

Underwriting income
Net premiums written

Investment income
Interest income and dividends
Gains on sale of securities
Investment expenses
Losses on sale of securities

Other ordinary income (losses), net
Ordinary profit
Underwriting profit

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. Net loss ratio = (Net losses paid + Loss adjustment expenses) / Net premiums written x 100
3. Net expense ratio = (Net commissions and brokerage fees + Operating, general and administrative expenses related to underwriting) / Net premium written x 100
4. Adjusted ordinary profit = Ordinary profit + Provision for catastrophe reserve＊Provision for catastrophe reserve is described as positive amount.
5. E.I. loss ratio = (Net losses paid + Provision for reserve for outstanding losses and claims + Loss adjustment expenses) / Earned premiums x 100＊Earthquake insurance and compulsory automobile liability insurance are excluded from the above calculation.

44. Premiums and Losses Paid by Type of Policy
Direct premiums written(Millions of yen)
For the nine months ended
December 31, 2018
AmountComposition

For the nine months ended
December 31, 2019
AmountYoY change%

Composition%

YoY change%

%

Fire

244

0.3

+64.5

1,408

1.6

+475.4

Marine－－－－－－

Personal accident6,576

7.8+0.9

6,958

7.9+5.8

Voluntary automobile

77,10391.9+5.1

80,18490.6+4.0

Compulsory automobile liability

Total

－－－－－

－

83,924

100.0

+4.8

88,551100.0+5.5

Net premiums written(Millions of yen)

For the nine months ended
December 31, 2018

For the nine months ended
December 31, 2019

AmountComposition

68

0.1

+502.5

YoY change%

Fire

AmountComposition

793

0.9%

YoY change%%+1,053.9

(0)

(0.0)

(100.0)00.0－

Personal accident

6,653

7.9(0.3)

6,769

7.6+1.7

Voluntary automobile

76,86590.8+5.0

79,96490.0+4.0

Compulsory automobile liability

1,110

1.3(1.9)

1,292

1.5+16.3

84,699100.0+4.5

88,818

100.0

+4.9

MarineTotal

Net losses paid, net loss ratio(Millions of yen)

For the nine months ended
December 31, 2018
Amount

For the nine months ended
December 31, 2019

Net loss ratio

YoY change%

AmountNet loss ratio

YoY change%%%Fire

11+102.0

59.5

101

813.2

17.6

Marine10+273.5－(3)(136.5)－

Personal accident

2,218+9.3

37.1

2,3897.7

38.4

Voluntary automobile

38,760+9.2

57.9

41,465

7.0

59.6

1,030

+3.5

92.8

1,015

(1.5)

78.6

42,031+9.1

56.7

44,9687.0

57.9

Compulsory automobile liabilityTotal

55. Non-consolidated Solvency Margin Ratio(Millions of yen)
As of March 31, 2019(A) Total non-consolidated solvency margin

As of December 31, 2019

60,01069,61531,34936,769Reserve for price fluctuations

238261

Contingency reserve122129Catastrophe reserve

24,636

26,968－－

1,186

903

Capital or treasury, etc.

General reserve for possible loan losses
Net unrealized gains (losses) on available-for-sale securities and net
deferred gains (losses) on hedging instruments (before tax deductions)
Net unrealized gains (losses) on real estate－－

Excess refund reserve－－

Subordinated debt－－

The portion of the excess refund reserve and subordinated debt
that is not included in the margin
Deductible items

－－－－

2,476

4,583

14,76015,139Others(B) Total non-consolidated risk

(R1+R2)2+(R3+R4)2+R5+R6

Ordinary insurance risk

(R1)

13,181

13,565Third-sector insurance risk

(R2)

00

Assumed interest rate risk

(R3)

123

130

Asset management risk

(R4)

1,861

1,827

Business management risk

(R5)325332(R6)
Major catastrophe risk(C) Non-consolidated solvency margin ratio

1,105

1,100

813.0 %

919.6 %[(A)／{(B)×1/2}]×100

Note: The above figures are calculated based on provisions in Articles 86 and 87 of the Ordinance for Enforcement of the Insurance
Business Act of Japan and Ministry of Finance Public Notice No. 50 of 1996.
A part of calculations for non-consolidated solvency margin ratio as of December 31, 2019 is calculated according tosimplified methods in major catastrophe risk. The figure is assumed to be equivalent to the amount as of September 30, 2019.

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