Consolidated Financial Summary (Japanese GAAP)
for the Nine Months Ended December 31, 2013
February 14, 2014
Sony Financial Holdings Inc.
(URL: http://www.sonyfh.co.jp/web/index_en.html)
Stock exchange listing: Tokyo Stock Exchange (code number: 8729)
Representative:
Katsumi Ihara, President and Representative Director
Inquiries:
Masaaki Konoo, General Manager—Corporate Communications & Investor Relations Dept.
(Fractional amounts of less than ¥1 million are discarded.)Company name:

1. Consolidated financial results for the nine months ended December 31, 2013
(1) Operating results
Ordinary Revenues
Ordinary Profit
For the nine months ended
December 31, 2013
For the nine months ended
December 31, 2012

Net Income

Millions of yen% change

Millions of yen% change

Millions of yen% change

1,047,365

20.2

61,56911.0

35,3377.8

871,505

10.8

55,492

3.0

32,78144.5

Note: Comprehensive Income:For the nine months ended December 31, 2013: ¥32,321 million:
For the nine months ended December 31, 2012: ¥46,867 million:

Net Income per
Share(Fully Diluted)

Net Income per
Share
Yen

For the nine months ended
December 31, 2013
For the nine months ended
December 31, 2012

(31.0)％
14.4％

Yen

81.24

—

75.36

—

(2) Financial conditions
Total Assets

Total Net Assets

Net Asset Ratio

Millions of yen

Millions of yen%

As of December 31, 2013

8,682,664

456,891

5.2

As of March 31, 2013

8,096,164

435,444

5.4

Note: Shareholders’ equity:

As of December 31, 2013: ¥ 455,579 million
As of March 31, 2013: ¥434,105 million

2. Dividends
Dividend per Share

Record date
For the year ended
March 31, 2013
For the year ending
March 31, 2014
For the year ending
March 31, 2014
(forecast)

1st quarter2nd quarter3rd quarter

Year-end

Annual Total

Yen

Yen

Yen

Yen

Yen

—

0.00

—

—

0.00

—

25.00

25.00

30.00

30.00

Note: Changes in dividend forecast since the most recent public announcement: None

3. Forecast of consolidated financial results for the year ending March 31, 2014
(Percentage figures represent changes from the results of the previous fiscal year.)Ordinary Revenues
For the year ending
March 31, 2014

Ordinary Profit

Net Income per
Share

Net Income

Millions of yen% change

Millions of yen% change

Millions of yen% change

1,304,000

3.6

75,000(5.4)

40,000(11.2)

Yen

91.95

4. Notes(1) Changes in scope of consolidation during the period under review (changes in specified subsidiaries accompanying changes inscope of consolidation): None
(2) Application of special accounting methods for preparing quarterly consolidated financial statements: None
(3) Changes in accounting policies, accounting estimates and restatements of the consolidated financial statements(a) Changes in accounting policies resulting from the revision of the accounting standards and other regulations: Yes(b) Changes in accounting policies due to other reasons: None(c) Changes in accounting estimates: None(d) Restatements of the consolidated financial statements: None

Note: For details, please refer to the section entitled “Changes in accounting policies, accounting estimates and restatements of the consolidated
financial statements” under “II. Notes Regarding Summary Information” on page 5 of the attachment.

(4) Number of shares outstanding (common stock)(a) Number of shares outstanding (including treasury shares)
As of December 31, 2013:
As of March 31, 2013:(b) Number of treasury shares
As of December 31, 2013:
As of March 31, 2013:(c) Weighted-average number of shares
For the nine months ended December 31, 2013:
For the nine months ended December 31, 2012:

435,000,000 shares
435,000,000 shares
1 share— shares434,999,999 shares
435,000,000 shares

Status of quarterly review procedures
Quarterly review procedures are completed by PricewaterhouseCoopers Aarata in accordance with Article 193-2-1 of the
Financial Instruments and Exchange Law of Japan. However, quarterly consolidated financial statements in this document are notsubject to such quarterly review procedures.

Content of Supplemental Materials
I.

Qualitative Information and Financial Statements

II.

1.

Qualitative Information on Consolidated Operating Performance・・・・・・・・・・・・・・

2

2.

Qualitative Information on Consolidated Financial Position・・・・・・・・・・・・・・・・

3

3.

Consolidated Financial Forecast for the Fiscal Year Ending March 31,2014・・・・・・・・・・・

3

Notes Regarding Summary Information
Changes in accounting policies, accounting estimates and restatements of the consolidated
financial statements・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

III.

5

Consolidated Financial Statements
1.

Consolidated Balance Sheets・・・・・・・・・・・・・・・・・・・・・・・・・・・

2.

Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

6(Consolidated Statements of Income) ・・・・・・・・・・・・・・・・・・・・・・・・・・・ 8(Consolidated Statements of Comprehensive Income) ・・・・・・・・・・・・・・・・・・・11

IV.

3.

Segment Information・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・12

4.

Subsequent Events・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・12

Attachment
Consolidated Financial Results for the Nine Months Ended December 31, 2013 and Sony Life’s

14

Market Consistent Embedded Value as of December 31, 2013

* The Conference Call for explaining the Sony Financial Group financial results will be held at 16:00 (Tokyo),February 14, 2014.
We are sorry for any inconvenience that our Conference Call will be held only in Japanese.
We will upload the Presentation Materials with speech text on February 14, 2014 after 15:00, and its Q&A
summary at a later date on Earning Releases and Presentation Materials page on our website:
http://www.sonyfh.co.jp/web/en/financial_info_e/results.html* On February 14, 2014, SFH’s significant subsidiaries: Sony Life Insurance Co., Ltd. (Sony Life), Sony
Assurance Inc. (Sony Assurance) and Sony Bank Inc. (Sony Bank) will announce its financial results for thenine months ended December 31, 2013. SFH prepared an English-language summary of those Japanese
announcements made by above subsidiaries, solely for convenience of non-Japanese readers.

1I. Qualitative Information and Financial Statements
1. Qualitative Information on Consolidated Operating Performance
During the nine months ended December 31, 2013 (April 1, 2013 to December 31, 2013), consolidated ordinary revenues
increased 20.2% compared with the same period of the previous fiscal year, to ¥1,047.3 billion, owing to increases in ordinary
revenues from all businesses: life insurance, non-life insurance and banking. Consolidated ordinary profit increased 11.0%
year on year, to ¥61.5 billion, owing also to increases in ordinary profits from all the businesses.
After accounting for extraordinary losses, provision for reserve for policyholders’ dividends, income taxes and other items,
consolidated net income for the nine months ended December 31, 2013, was up 7.8% year on year, to ¥35.3 billion.
Segment Information by Business
Figures from each business do not reflect intersegment adjustments.

< Life insurance business >Income from insurance premiums increased 12.4% compared with the same period of the previous fiscal year, to ¥738.7
billion, due to an increase in the sale of lump-sum payment endowment insurance and steady growth in policy amount in force.
Investment income increased 74.6% year on year, to ¥194.8 billion due to higher gains on separate accounts, net resulting
from the market recovery. As a result, ordinary revenues increased 21.7% year on year, to ¥954.8 billion. Ordinary profit
expanded 2.9% year on year, to ¥53.3 billion, owing to an increase in the positive spread and a reversal of policy reserves forminimum guarantees for variable life insurance, despite the negative impact from an increase in provision of policy reserves
resulting from the revision of discount rate used for calculating policy reserves.

< Non-life insurance business >Net premiums written increased 5.6% compared with the same period of the previous fiscal year, to ¥66.5 billion, due to anincrease in the number of insurance policies in force for its mainstay automobile insurance. Consequently, ordinary revenuesrose 5.7% year on year, to ¥67.4 billion. Ordinary profit increased 164.8% year on year, to ¥2.7 billion, due to a decline in theloss ratio mainly led by the revision of premium rates for automobile insurance and a lower car accident ratio owing to theintroduction of a new bonus-malus system (non-fleet driver rating system), in addition to a decline in the expense ratio.

< Banking business >Ordinary revenues increased 7.5% year on year, to ¥27.0 billion, due to higher gains on foreign exchange transactions
stemming from customers’ active foreign currency trading and a rise in interest income on loans led by the growing balanceof mortgage loans. Ordinary profit expanded 110.0% year on year, to ¥5.2 billion, due mainly to an improvement in net gains
on bond-dealing transactions, and a decrease in interest expenses.
Ordinary Revenues
For the nine months ended
December 31, 2012
Life insurance business
Non-life insurance businessBanking business
SubtotalIntersegment adjustments
Consolidated

For the nine months ended
December 31, 2013

(Millions of yen)
Change (%)

784,377
63,82325,149954,841
67,481
27,033

21.7
5.7
7.5

873,350

1,049,355

20.2(1,844)(1,989)－871,505

1,047,365

20.2

2

Ordinary Profit
For the nine months ended
December 31, 2012
Life insurance business
Non-life insurance businessBanking business
SubtotalIntersegment adjustments*
Consolidated

For the nine months ended
December 31, 2013

(Millions of yen)
Change (%)

51,7891,053
2,507

53,310
2,791
5,266

2.9
164.8
110.0

55,351
141

61,367
201

10.9
42.6

55,492
61,569*Amounts in the ordinary profit in the “Intersegment adjustments” are mainly from SFH.

11.0

2. Qualitative Information on Consolidated Financial Position
As of December 31, 2013, total assets amounted to ¥8,682.6 billion, up 7.2% from March 31, 2013. Among major
components of assets, securities, mostly Japanese government bonds, amounted to ¥6,669.9 billion, up 7.5% from March 31,
2013. Loans came to ¥1,176.0 billion, up 5.4%, and monetary trusts amounted to ¥322.0 billion, down 0.7% from March 31,
2013.
Total liabilities were ¥8,225.7 billion, up 7.4% from March 31, 2013. Major components of liabilities included policy
reserves of ¥6,145.5 billion, up 9.7%, and deposits, amounting to ¥1,857.4 billion, remained at the same levels as of March 31,
2013.
Total net assets were ¥456.8 billion, up 4.9% from March 31, 2013. This included net unrealized gains on other securities,
net of taxes, which decreased ¥3.6 billion, to ¥84.6 billion.

3. Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2014
On February 6, 2014, we have revised upward our consolidated financial forecast for ordinary revenues, ordinary profit andnet income for the fiscal year ending March 31, 2014 (April 1, 2013, to March 31, 2014), from the forecast announced on May
9, 2013. This is because the operating results for the nine months ended December 31, 2013, exceeded our previous estimatesin all the businesses.
(Billions of yen)
(Actual)Fiscal year ended March 31, 2013
(April 1, 2012, to March 31, 2013)
Ordinary revenues(Forecast)Fiscal year ending March 31, 2014
(April 1, 2013, to March 31, 2014)

1,259.0

1,304.0

Ordinary profit

79.2

75.0

Net income

45.0

40.0

103.6091

Net income per share (Yen)

Notes: Fractional amounts of less than ¥0.1 billion are discarded for ordinary revenues, ordinary profit and net income.
Fractional amounts of less than ¥1 are discarded for the net income per share for the fiscal year ending March 31, 2014.
.

(Reference)
Business segment forecasts for the fiscal year ending March 31, 2014 (April 1, 2013 through March 31, 2014) are as follows.
Forecast of the life insurance business are revised upward from the forecast announced on May 20, 2013.
Forecasts of the non-life insurance and banking businesses were revised upward on November 15, 2013, reflecting
favorable operating results during the first half of this fiscal year.

3Actual results figures for the fiscal year ended March 31, 2013 from each business do not reflect intersegment adjustments
whereas forecast figures for the fiscal year ending March 31, 2014 reflect them.
<Life insurance business>
We have revised our full-year forecast for ordinary revenues and ordinary profit from our previous forecast announced in May
2013 because operating results for the nine months ended December 31, 2013 exceeded our previous estimates, resulting
mainly from the market recovery. Since financial conditions are uncertain after January 2014, our updated forecast reflects
financial conditions as of the end of January 2014.
(Billions of yen)
(Reference)
Actual results for the fiscal
year ended March 31, 2013

Formerly announced forecast
for the fiscal year ending
March 31, 2014

Updated forecast
for the fiscal year ending
March 31, 2014

Ordinary revenues

1,142.3

1,099.9

1,179.8

Ordinary profit

72.7

61.4

65.7

<Non-life insurance business>
The forecast for ordinary revenues remains unchanged from the forecast announced in November 2013 because we expect net
premiums written in automobile insurance to continue to increase steadily. The forecast for ordinary profit remains unchanged
because we expect a stably low loss ratio in the fourth quarter despite a temporary rise in the loss ratio reflecting a surge inprovision of reserve for outstanding losses in this third quarter.
(Billions of yen)
(Reference)
Forecast for the fiscal year ending
Actual results for the fiscal year ended
March 31, 2014
March 31, 2013
Ordinary revenues

84.7

89.5

Ordinary profit

2.3

3.8

<Banking business>
The forecast for ordinary revenues remains unchanged from the forecast announced in November 2013 because ordinary
revenues are expected to increase due to higher gains on foreign exchange transactions stemming from customers' active
foreign currency trading and a rise in interest income on loans led by the growing balance of mortgage loans. The forecast forordinary profit remains unchanged despite an increase in net interest income because we expect to record a temporary loss
related bond transactions in the fourth quarter.
(Billions of yen)
(Reference)
Forecast for the fiscal year ending
Actual results for the fiscal year ended
March 31, 2014
March 31, 2013
Ordinary revenues

34.3

34.9

Ordinary profit

3.9

5.2

Notes: Fractional amounts of less than ¥0.1 billion are discarded for ordinary revenues, ordinary profit and net income.

4II. Notes Regarding Summary Information
Changes in accounting policies, accounting estimates and restatements of the consolidated financial statements
Changes in accounting policies(Application of Accounting Standards for Consolidated Financial Statements)
From the nine months of the fiscal year under review, the Sony Financial Group has begun applying the “Accounting Standard
for Consolidated Financial Statements” (Accounting Standards Board of Japan (“ASBJ”) Statement No. 22 (March 25, 2011), the“Guidance on Disclosures about Certain Special Purpose Entities” (ASBJ Guidance No. 15, March 25, 2011), the “Guidance on
Determining a Subsidiary and an Affiliate” (ASBJ Guidance No. 22, March 25, 2011) and the “Practical Solution on Applicationof the Control Criteria and Influence Criteria to Investment Associations” (ASBJ PITF No. 20, March 25, 2011).
This application has no impact on retained earnings at the beginning of the nine months of the fiscal year under review.

5III. Consolidated Financial Statements
1. Consolidated Balance Sheets(Millions of yen)
As of March 31, 2013

As of December 31, 2013

Cash and due from banks¥104,142¥174,388

Call loans and bills bought

107,088

71,246

Monetary trusts

324,305

322,046

AssetsSecurities

6,202,333

6,669,922

Loans

1,115,330

1,176,018

Tangible fixed assets

73,217

71,382Intangible fixed assets

38,232

36,730Goodwill

258

199

Others37,97436,531

Due from reinsurers

110

337

Foreign exchanges

7,954

11,795

Other assets

107,345

129,366

Deferred tax assets

17,98021,277

Reserve for possible loan losses(1,877)(1,847)¥8,096,164¥8,682,664

Total Assets

6

(Millions of yen)
As of March 31, 2013

As of December 31, 2013

Liabilities
Policy reserves and others¥5,601,060¥6,145,549

53,24655,8025,543,540

6,085,667

4,273

4,078

Due to agencies

2,431

1,696

Due to reinsurers

600

502

1,857,302

1,857,430

Call money and bills sold

10,0006,000

Borrowed money

2,000

20,000Foreign exchanges

87

67

Bonds payable

20,00020,000

Other liabilities

106,365

106,673

Reserve for outstanding claims
Policy reserves
Reserve for policyholders’ dividends

Deposits

Reserve for employees’ bonuses

3,085

1,763

Reserve for employees’ retirement benefits

24,21626,328Reserve for directors’ retirement benefits

411

230

32,34438,909Special reserves

32,34438,909Deferred tax liabilities

Reserve for price fluctuations

275

85

Deferred tax liabilities on land revaluation

536

536

7,660,719

8,225,772

19,90019,900Total Liabilities
Net Assets
Common stock
Capital surplus

195,277

195,277

Retained earnings

135,160

159,622–(0)350,337

374,799

Net unrealized gains on other securities, net of taxes

88,32984,696

Net deferred losses on hedging instruments, net of taxes(3,047)(2,403)

Land revaluation, net of taxes(1,513)(1,513)

83,76780,779Minority interests

1,339

1,312

Total Net Assets

435,444456,891¥8,096,164¥8,682,664

Treasury stock
Total shareholders’ equity

Total accumulated other comprehensive income

Total Liabilities and Net Assets

7

2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
For the nine months ended
December 31, 2012

For the nine months ended
December 31, 2013

Ordinary Revenues¥871,505¥1,047,365

Ordinary Revenues from the Life Insurance Business

782,667

953,001

Income from insurance premiums

656,715

737,931

Investment income

111,240

194,489(Interest income and dividends)

80,09289,859(Income from monetary trusts, net)

3,934

3,987

(Gains on sale of securities)

2,458

674

(Gains on derivatives, net)–

172

(Gains on separate accounts, net)
Other ordinary income
Ordinary Revenues from the Non-life Insurance Business
Underwriting income(Net premiums written)(Interest and dividends on deposits of premiums)

24,73998,766

14,711

20,57963,82367,48063,011

66,56962,98766,542

24

27

743

891

(Interest income and dividends)

743

899

(Gains on sale of securities)

24

15(Transfer to interest and dividends on deposits of premiums)

(24)

(27)

68

19

25,01526,884

19,23819,815(Interest income on loans)

10,367

10,650(Interest income and dividends on securities)

8,814

9,085

Fees and commissions

3,968

3,484

Other operating income

1,715

3,466

1,157

2,080

92

118

Investment income

Other ordinary income
Ordinary Revenues from the Banking Business
Interest income(Gains on foreign exchange transactions, net)
Other ordinary income(Continued)

8

(Millions of yen)
For the nine months ended
December 31, 2012

For the nine months ended
December 31, 2013

Ordinary Expenses¥816,013¥985,796

Ordinary Expenses from the Life Insurance Business

732,111

901,034

215,554

251,408(Insurance claims)

51,68357,376(Annuity payments)

6,704

7,285

Insurance claims and other payments(Insurance benefits)

37,39845,805(Surrender payments)

116,510

137,241

1,833

2,302

409,557

536,364

409,547

536,359

9

4Investment expenses

9,317

5,818

(Interest expenses)

30

40(Other payments)
Provision for policy reserves and others
Provision for policy reserves
Interest portion of reserve for policyholders’ dividends(Losses on sale of securities)

1,587

47

(Devaluation losses on securities)

327–(Losses on derivatives, net)

82–

Operating expenses

79,93485,197

Other ordinary expenses

17,74822,246

Ordinary Expenses from the Non-life Insurance Business

62,30464,201

Underwriting expenses

47,34048,957(Net losses paid)

35,04135,040(Loss adjustment expenses)

4,241

4,677

(Net commission and brokerage fees)

734

739

(Provision for reserve for outstanding losses)

3,594

2,732

(Provision for underwriting reserves)

3,727

5,767

5

2

Investment expenses(Losses on sale of securities)
Operating, general and administrative expenses
Other ordinary expenses

3

1

14,943

15,241

14–(Continued)

9

(Millions of yen)
For the nine months ended
December 31, 2012
Ordinary Expenses from the Banking Business
Interest expenses(Interest expenses on deposits)
Fees and commissions

For the nine months ended
December 31, 2013

¥21,597¥20,560

6,138

4,681

4,934

3,631

1,128

1,270

Other operating expenses

1,518

1,855

General and administrative expenses

12,631

12,581

181

171

Ordinary Profit

55,492

61,569Extraordinary Losses

6,338

6,635

15

39

Other ordinary expenses

Losses on disposal of fixed assets
Impairment losses

82

11

4,940

6,564

Provision for reserve for price fluctuations

4,940

6,564

Losses on sale of shares of subsidiaries and affiliates

1,299

–

Provision for special reserves

Others

0

19

136

67

Income Before Income Taxes

49,01754,867

Income Taxes

16,141

19,556– Current

18,375

21,473– Deferred(2,233)(1,917)32,87535,310

Provision for Reserve for Policyholders’ Dividends

Income Before Minority Interests
Minority interests in income (losses)
Net Income

10

94

(26)

¥32,781¥35,337

(Consolidated Statements of Comprehensive Income)(Millions of yen)
For the nine months ended
December 31, 2012
Income Before Minority Interests

For the nine months ended
December 31, 2013¥32,875¥35,310

14,090(3,632)

Net deferred gains (losses) on hedging instruments, net of taxes

(552)

644

Foreign currency translation adjustments

453–

Share of other comprehensive income of affiliates accounted
for using equity method(0)013,991(2,988)¥46,867¥32,321Comprehensive income attributable to parent company

46,77332,348Comprehensive income attributable to minority interests

94

(26)

Other comprehensive income
Net unrealized gains (losses) on other securities, net of taxe

Total other comprehensive income
Comprehensive income(Details)

11

3. Segment Information(1) Segment Information by reporting segment
For the nine months ended December 31, 2012
Life insurance
business
Ordinary revenues
External customers
Intersegment
Total
Segment profit

Millions of yen
Non-life
Banking
insurancebusinessbusiness¥782,667
1,710
784,377¥51,789

For the nine months ended December 31, 2013
Life insurance
business¥63,823
0
63,823¥1,053¥25,015
134
25,149¥2,507

Millions of yen
Non-life
Banking
insurancebusinessbusiness

Total¥871,505
1,844
873,350¥55,351

Total

Ordinary revenues
External customers
Intersegment
Total
Segment profit¥953,001
1,839
954,841¥53,310¥67,480
067,481¥2,791¥26,884
148
27,033¥5,266¥1,047,365
1,989
1,049,355¥61,367(2) Reconciliations of the totals of reportable segments’ profit to quarterly consolidated statement of income

Totals of reporting segments
Adjustments for intersegment transactions
Amount not allocated to reporting segments
Ordinary profit in statement of income

Millions of yen
For the nine months ended
For the nine months ended
December 31, 2012
December 31, 2013
¥55,351¥61,3675
5
136
195¥55,492¥61,569(3)Information on impairment loss on fixed assets and goodwill by reporting segment
None

4. Subsequent Events
There were no applicable subsequent events.

12

SFH’s consolidated results* are prepared in accordance with Japanese GAAP. As such, these figures differ insignificant respects from the financial information reported by Sony Corporation, the SFH’s parent company, which
prepares its financial statements in accordance with U.S. GAAP.
*

SFH’s scope of consolidation includes Sony Financial Holdings Inc., Sony Life Insurance Co. Ltd., Sony AssuranceInc., Sony Bank Inc., and SmartLink Network, Inc. It also includes AEGON Sony Life Insurance Co., Ltd. and SA
Reinsurance Ltd., as affiliated companies accounted for under the equity method. Sony Life Insurance (Philippines)
Corporation*1 and Sony Bank Securities Inc. *2 were included in the scope of consolidation for the nine months ended
December 31, 2013. (April 1, 2012 to December 31, 2013).
*1
Sony Life Insurance (Philippines) Corporation was excluded from scope of consolidation due to the sale of its
whole shares on December 6, 2012*2
Sony Bank Securities Inc. was excluded from scope of consolidation due to the sale of its whole shares on August
1, 2012.
On February 6, 2014, Sony Corporation announced its consolidated financial results for the third quarter ended
December 31, 2013 (October 1, 2013 to December 31, 2013). Sony Financial Group companies constitute Sony
Group’s Financial Services segment in the current fiscal year ending March 31, 2014. However, the scope of Sony
Group’s Financial Services segment differs from the scope of SFH’s consolidation for the period ended on or before
March 31, 2013.

This Consolidated Financial Summary contains statements concerning the current plans, expectations,strategies and beliefs of the Sony Financial Group. Any statements contained herein that pertain to future
operating performance and that are not historic facts are forward-looking statements. Forward-looking
statements may include—but are not limited to—words such as “believe,” “anticipate,” “plan,” “strategy,”“expect,” “forecast,” “predict,” and “possibility” that describe future operating activities, businessperformance, events or conditions. Forward-looking statements, whether spoken or written, are based on
judgments made by the management of the Sony Financial Group, based on information that is currently
available to it. As such, these forward-looking statements are subject to various risks and uncertainties, andactual business results may vary substantially from the forecasts expressed or implied in forward-looking
statements. Consequently, investors are cautioned not to place undue reliance on forward-looking statements.
The Sony Financial Group disclaims any obligation to revise forward-looking statements in light of new
information, future events or other findings. The information contained in this Consolidated Financial
Summary 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 for any securities, nor shall it or any part of it form the basis of or be relied on inconnection with any contract or commitment whatsoever.

For inquiries:
Masaaki Konoo or Hiroko Hanakura
Corporate Communications & Investor Relations Dept.
Sony Financial Holdings Inc.
Telephone: +81-3-5785-1074
E-mail: press@sonyfh.co.jp
Website of Sony Financial Holdings Inc.
http://www.sonyfh.co.jp/web/index_en.html

13

IV. Attachment
Content of Presentation Material
1.
2.
3.
4.

Consolidated Operating Results for the Nine Months Ended December 31, 2013・・・・・・・・
Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2014・・・・・・・・・
Sony Life’s MCEV and Risk Amount Based on Economic Value as of December 31, 2013
Appendix・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

14

3
29
31
34

Attachment

Presentation Material

Consolidated Financial Results
for the Nine Months Ended December 31, 2013
andSony Life sMarket Consistent Embedded Valueas of December 31, 2013

Sony Financial Holdings Inc.
February 14, 2014
Sony Financial Holdings Inc. All Rights Reserved

Content
 Consolidated Operating Results for the Nine Months Ended December 31, 2013

P.3

 Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2014

P.29

 Sony Life’s MCEV and Risk Amount Based on Economic Value

P.31

as of December 31, 2013
 Appendix

P.34

Disclaimers:
This presentation material contains statements concerning the current plans, expectations, strategies and beliefs of the Sony Financial
Group. Any statements contained herein that pertain to future operating performance and that are not historic facts are forward-looking
statements . Forward-looking statements may include —but are not limited to—words such as “believe,” “anticipate,” “plan,” “strategy,”“expect,” “forecast,” “predict,” and “possibility” that describe future operating activities, business performance, events or conditions.
Forward-looking statements, whether spoken or written, are based on judgments made by the management of the Sony Financial
Group, based on information that is currently available to it. As such, these forward-looking statements are subject to various risks
and uncertainties, and actual business results may vary substantially from the forecasts expressed or implied in forward-looking
statements. Consequently, investors are cautioned not to place undue reliance on forward-looking statements. The Sony Financial
Group disclaims any 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 for any securities, nor shall it or any part of it from the basis of or be relied on in connection
with any contract or commitment whatsoever.

Sony Financial Holdings Inc. All Rights Reserved2

Attachment

Consolidated Operating Results for theNine Months Ended December 31, 2013

Sony Financial Holdings Inc. All Rights Reserved

3

Highlights of Consolidated Operating Performancefor the Nine Months Ended December 31, 2013 (1)Consolidated ordinary revenues
Consolidated ordinary profit

1,047.3+20.2%

871.5

61.5

55.4

(Billions of yen)

FY12.3Q(9M)

FY13.3Q(9M)

Life
insurancebusiness

Ordinary revenues

784.3

954.8

+170.4+21.7%

Ordinary profit

51.7

53.3

+1.5

+2.9%

Non-life
insurancebusiness

Ordinary revenues

63.8

67.4

+3.6

+5.7%

Ordinary profit

1.0

2.7

+1.7

+164.8%Bankingbusiness

Ordinary revenues

25.1

27.0

+1.8

+7.5%

Ordinary profit

2.5

5.2

+2.7

+110.0%Intersegment
adjustments*

Ordinary revenues

(1.8)

(1.9)

(0.1)

－

0.1

0.2

+0.0

+42.6%

Ordinary revenues

871.5

1,047.3+175.8+20.2%

Ordinary profit

55.4

61.5

+60.0

+11.0%Net income

32.7

35.3

+2.5

+7.8%

13.3.31

13.12.31

Total assets

8,096.1

8,682.6+586.5+7.2%

Net assets

435.4

456.8

+21.4

+4.9%

+11.0%

Consolidated

FY12.3Q (9M)

Ordinary profit(Billions of yen)

FY13.3Q (9M)(Billions of yen)

ChangeChange from
13.3.31

Consolidated*Ordinary profit in “Intersegment adjustments” is mainly from SFH.
*Comprehensive income: FY12.3Q (9M): ¥46.8 billion, FY13.3Q (9M): ¥32.3 billion
Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

Sony Financial Holdings Inc. All Rights Reserved

4Attachment

Highlights of Consolidated Operating Performancefor the Nine Months Ended December 31, 2013 (2) Life Insurance Business: Ordinary revenues increased compared with the same period of the previous

fiscal year mainly because an increase in income from insurance premiums due to an increase in thesale of lump-sum payment endowment insurance and steady growth in policy amount in force. An
increase in the investment income due to higher gains on separate accounts, net resulting from themarket recovery also contributed to the rise in ordinary revenues. Ordinary profit expanded year on year
owing to an increase in the positive spread and a reversal of policy reserves for minimum guarantees forvariable life insurance, despite the negative impact from an increase in provision of policy reserves
resulting from the revision of discount rate used for calculating policy reserves.
 Non-life Insurance Business：Ordinary revenues increased year on year owing to an increase in net

premiums written primarily for its mainstay automobile insurance. Ordinary profit increased year on year
due to a decline in the loss ratio mainly led by the revision of premium rates for automobile insurance anda lower car accident ratio owing to the introduction of a new bonus-malus system (non-fleet driver rating
system), in addition to a decline in the expense ratio.
Banking Business：Ordinary revenues increased year on year due to higher gains on foreign exchangetransactions stemming from customers’ active foreign currency trading and a rise in interest income onloans led by the growing balance of mortgage loans. Ordinary profit expanded year on year due mainly toan improvement in net gains on bond-dealing transactions and a decrease in interest expenses.

 Consolidated ordinary revenues increased 20.2% compared with the same period of the previous fiscal

year, to ¥1,047.3billion, owing to increases in ordinary revenues from all businesses: life insurance, nonlife insurance and banking. Consolidated ordinary profit increased 11.0% year on year, to ¥61.5 billion,
owing also to increases in ordinary profits from all the businesses. Consolidated net income was up 7.8%
year on year, to ¥35.3 billion.
Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

Sony Financial Holdings Inc. All Rights Reserved

5Highlights of Operating PerformanceSony Life (Non-consolidated)
Ordinary revenues

Ordinary profit（億円）(Billions of yen)

955.2

784.1

Ordinary revenues+21.8%

52.8

+3.6%

955.2

+171.0+21.8%

657.3

738.7

+81.4

+12.4%

Investment income

111.4

194.8

+83.4

+74.9%

Interest income and dividends

80.3

90.2

+9.8

+12.3%

Income from monetary trusts, net

3.9

3.9

+0.0

+1.3%

Gains on sale of securities

2.3

0.6

(1.6)

(71.4%)

24.7

98.7

+74.0

+299.2%

731.2

900.4

+169.1+23.1%

Insurance claims and other payments

215.5

251.4

+35.8

+16.6%

Provision for policy reserves and others

409.5

536.3

+126.8+31.0%

9.4

6.0

(3.4)

(36.0%)

Ordinary expenses

Losses on sale of securities

FY13.3Q (9M)(Billions of yen)

◆ Ordinary revenues and ordinary profit increased
year on year.
◆ Income from insurance premiums increased due to anincrease in the sale of lump-sum payment endowment
insurance and steady growth in policy amount in force.
◆ Investment income increased due mainly to higher gains
on separate accounts, net resulting from the market
recovery.
◆ Ordinary profit expanded year on year owing to anincrease in the positive spread and a reversal of policy
reserves for minimum guarantees for variable life
insurance, despite the negative impact from an increasein provision of policy reserves resulting from the revisionof discount rate used for calculating policy reserves.

Change784.1

Investment expenses

FY12.3Q (9M)

FY13.3Q(9M)

Income from insurance premiums

Gains on separate accounts, net

54.7

FY12.3Q
(9M)

1.5

0.0

(1.5)

(97.0%)

80.0

85.5

+5.4

+6.8%

Ordinary expenses

52.8

54.7

+1.8

+3.6%

Net income

31.1

31.5

+0.3

+1.3%

Operating expenses(Billions of yen)

13.3.31

13.12.31

Change from 13.3.31

Securities

5,211.5

5,793.8+582.3+11.2%

Policy reserves

5,472.9

6,009.2+536.3+9.8%

Total net assets

342.3

358.8

+16.5

+4.8%

80.2

76.4

(3.7)

(4.7%)

5,952.7

6,507.3+554.6

+9.3%

550.6

651.0

+100.4+18.2%Net unrealized gains on other securities,
net of taxes

Total assets
Separate account assets

Sony Financial Holdings Inc. All Rights Reserved

Line item amounts are truncated below ¥100 million;
percentage change figures are rounded.

6

Attachment

Overview of PerformanceSony Life (Non-consolidated)<Reasons for changes>

FY12.3Q(9M)

FY13.3Q(9M)

ChangeNew policy amount

3,215.9

3,003.1(6.6%)

Lapse and surrender amount

1,451.5

1,327.5(8.5%)(Billions of yen)

◆ Decreased due mainly to lower sales

Lapse and surrender rate

4.03%

3.52%

(0.51pt)

Policy amount in force

37,203.6

38,863.7+4.5%

Annualized premiums from new policies

51.1

48.7

(4.8%)Of which, third-sector products

13.1

10.5

(19.7%)

657.8

690.8

+5.0%

155.7

166.3

+6.8%

(Billions of yen)

FY12.3Q(9M)

FY13.3Q(9M)

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

Gains from investment, net (General account)

77.1

90.0

+16.6%

Core profit

57.0

56.6

(0.6%)

Positive spread

1.1

5.7

+418.2%13.3.31

13.12.31

Changefrom
13.3.312,281.8%

2,404.8%+123.0pt

Non-consolidated solvency margin ratioof family income insurance andinterest rate-sensitive whole life
insurance despite higher sale of lumpsum payment endowment insurance.

◆ Decreased mainly in term-life
insurance.
◆ Decreased due to lower sales of
educational endowment insurance andinterest rate-sensitive whole life
insurance despite higher sale of lumpsum payment endowment insurance.
Of which, third-sector products, sale oflump-sum payment whole life nursing
care insurance decreased.
◆ Almost unchanged because thenegative impact from provision ofpolicy reserves resulting from therevision of discount rate used for
calculating policy reserves was offset
by an increase in the positive spread
and a reversal of reserves forminimum guarantees for variable life
insurance.

Notes:
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, notadjusted for policy amount decreases, increases, and reinstatements, by the policy amount in force at the
beginning of the fiscal year.
Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

Sony Financial Holdings Inc. All Rights Reserved

7

Operating Performance :Sony Life (Non-consolidated) (1)
Number and Amount of New Policies(Individual Life Insurance + Individual Annuities)
New policy amount[ Reference]
4Q(3M) Number and Amount of New Policies

Number of new policies

New policy amount

454

439

3.22

(Thousands of policies)

500(5.5%)

415

40,0003.5
35,000

Number of new policies(Thousands of policies)(Trillions of yen)

400

3.21

3.00

(Trillions of yen)

200

1.5

3.0
30,000(6.6%)

180+31.9%

137

137

0.96

0.97

1.23

300

2.5
25,0001.0+26.9%

20,000
2.0

100

200

1.5
15,0000.5

10,000
1.0

100

5,000
0.5
0

0

FY11.3Q (9M)

FY12.3Q (9M)

FY13.3Q (9M)00
FY10.4Q

FY11.4Q

FY12.4Q

Line item amounts are truncated below ¥10 billion; numbers of policies aretruncated below 1,000 policies; percentage change figures are rounded.

Sony Financial Holdings Inc. All Rights Reserved

8

Attachment

Operating Performance :Sony Life (Non-consolidated) (2)Annualized Premiums from New Policies(Individual Life Insurance + Individual Annuities)
Annualized premiums from new policies[ Reference]
4Q(3M) Annualized Premiums from New Policies

Of which, third-sector

Annualized premiums from new policies
Of which, third-sector(Billions of yen)
60

22.0

(Billions of yen)

53.1

51.1

+24.8%

48.7

50

20

17.6

17.2

(4.8%)
40

15

30
10

20

+29.1%

5

10

13.1

13.0

(19.7%)

10.5

3.9

4.0

FY10.4Q

FY11.4Q

5.2

00
FY11.3Q (9M)

FY12.3Q (9M)

FY13.3Q (9M)

FY12.4Q

Line item amounts are truncated below ¥100milliom; percentage change figures are rounded.

Sony Financial Holdings Inc. All Rights Reserved

9Operating Performance :Sony Life (Non-consolidated) (3)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

Number of policies in force
Annualized premiums from insurance in force(Millions of policies)

Of which, third-sector(Trillions of yen)
+5.9%
50

6.04

5.92

+3.8%

6.27

(Billions of yen)

690.8

669.9

657.8
6

40

37.2

+4.5%

37.7

+3.1%

+5.0%

38.8
5

+2.9%
4

30

3
20
2
10

+6.8%

155.7
1

158.6

+4.8%

166.3

0

0

12.12.31

13.3.31

13.12.31

Line item amounts are truncated below ¥100 billion; numbers of policies aretruncated below 10,000 policies; percentage change figures are rounded.

Line item amounts are truncated below ¥100 million;
percentage change figures are rounded.

Sony Financial Holdings Inc. All Rights Reserved

10Attachment

Operating Performance :Sony Life (Non-consolidated) (4)Lapse and Surrender Rate*(Individual Life Insurance + Individual Annuities)
Lapse and surrender rate (Annual)
Lapse and surrender rate (9M)
(%)

5.93
5.31

(0.51pt)

4.50

4.03
3.52

*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) (5)Income from Insurance Premiums

Interest Income and Dividends(Billions of yen)

90.2

(Billions of yen)

738.7

800

90

80.3
80

657.3

700

602.0
600

+12.4%

72.5+12.3%

70
60

500

50

400
40

300
30

200
20

100

10

0
FY11.3Q (9M)

FY12.3Q (9M)

FY13.3Q (9M)

0
FY11.3Q (9M)

FY12.3Q (9M)

FY13.3Q (9M)Line item amounts are truncated below ¥100 million; percentage figures are rounded.

Sony Financial Holdings Inc. All Rights Reserved

12

Attachment

Operating Performance :Sony Life (Non-consolidated) (6)Core Profit(Billions of yen)

Ordinary Profit*Included ¥3.9 billion of a reversal of reserve for outstanding
claims related to the Great East Japan Earthquake.

60

57.0
50.9*

(Billions of yen)60

56.6
(0.6%)

50

50

54.7
52.8

50.5

+3.6%
40

40

30

30

20

20

10

10

0

0
FY11.3Q (9M)
(Reference) Impact on core profit

FY12.3Q (9M)

FY11.3Q (9M)

FY13.3Q (9M)(Billions of yen)

FY11.3Q FY12.3Q FY13.3Q
(9M)
(9M)
(9M)

FY12.3Q (9M)

(Reference) Main differences from Core Profit
FY11.3Q(9M)

FY13.3Q (9M)(Billions of yen)

FY12.3Q(9M)

FY13.3Q
(9M)

(1.7)

1.1

5.7

Capital gains (losses)

2.4

(0.8)

1.2

Effects by the revision of policy reserve discount rate

－

－

(8.0)

Provision of contingency reserve

(2.7)

(3.0)

(2.9)

Reversal of policy reserves for minimum guarantees forvariable life insurance in the general account assets

(5.6)

(1.2)

0.9

Positive (Negative) spread*The plus amount in negative spread indicates positive spread.

*“Provision of policy reserves for minimum guarantees for variable life insurance
in the general account assets” and “Provision of contingency reserve” aredescribed as negative amount.
Line item amounts are truncated below ¥100 million; percentage figures are rounded.

Sony Financial Holdings Inc. All Rights Reserved

13

Operating Performance :Sony Life (Non-consolidated) (7)Number of Lifeplanner Sales Employees(Number)
+46

4,500
4,121
[76]

4,105
[86]

4,085
[96]

4,046
[102]

4,133
[105]

4,127
[109]

4,125
[110]

4,092
4,031
[121]
[87]
(33)

4,000

3,500

3,000012.3.3112.6.30

12.9.30

12.12.31

13.3.3113.6.30

13.9.30

13.12.31

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.
* “Lifeplanner” is a registered trademark of Sony Life.

Sony Financial Holdings Inc. All Rights Reserved

14

Attachment

Operating Performance :Sony Life (Non-consolidated) (8)Breakdown of General Account Assets
13.3.31(Billions of yen)Amount%Amount

%4,561.0

84.4%

5,016.2

85.7%

Japanese stocks

31.1

0.6%

36.4

0.6%

Foreign securities

62.0

1.1%

74.9

1.3%

Foreign stocks

25.4

0.5%

27.4

0.5%

Japanese governmentand corporate bonds<Asset management review>
On the asset side, we lengthened the duration of
securities held to match the liability characteristics
of insurance policies with long-term maturities withthe aim of reducing interest rate risk.

13.12.31

Japanese government and corporate bonds:
Continue to accumulate ultralong-term bonds in FY13.
<Bond duration>
Mar. 31, 2012 19.2 years

Monetary trusts

306.1

5.7%

301.5

Mar. 31, 2013 19.9 years

5.1%

Dec. 31, 2013
Policy loans

145.0

2.7%

150.8

2.6%

Real estate

70.3

1.3%

67.0

1.1%

Cash and call loans

103.3

1.9%

62.6

1.1%

Others

97.7

1.8%

119.1

2.0%

5,402.1

100.0%

5,856.2

100.0%

Total

19.6 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 general account assets:
As of Dec. 31, 2013: 90.8%, (As of Mar. 31, 2013: 90.1%)

Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

Sony Financial Holdings Inc. All Rights Reserved

15

Operating Performance :Sony Life (Non-consolidated) (9)Non-consolidated Solvency Margin Ratio

(%)

3,000

+123.0pt

2,500

2,404.8

2,281.8
2,000

1,980.4
1,500

0
1,000

12.3.3113.3.31

13.12.31

Sony Financial Holdings Inc. All Rights Reserved

16

Attachment

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
Number of new policies[ ](Billions of yen)

127.8
[22.2](Billions of yen)(Thousands ofpolicies)

Policy amount in force
Number of policies in force[ ]199.0[31.7]

200(Thousands ofpolicies)

35

24
120.0

180

22

100.0

30

20

160

18

140

16
80.0

120

20

14
100

12

60.0
27.3
[3.9]

40.0
20.0

25

80

8

60

6

10.6
[1.4]

57.7
[7.5]

15
10

40

4

0.0
FY11.3Q (9M)

10

76.1
[10.2]

FY12.3Q (9M)

5

2

20

0

0

0
12.12.31

FY13.3Q (9M)

13.3.31

13.12.31*AEGON Sony Life Insurance is an equity method company, 50-50 joint venture established by Sony Life and AEGON Group.

(Billions of yen)

FY12.3Q(9M)

FY13.3Q(9M)(Reference)
FY12

ChangeOrdinary revenues

31.3

137.0

+105.6+336.5%

58.6

Ordinary profit (losses)

(1.7)

(2.5)

(0.7)

－

(2.4)

Net income (losses)

(1.8)

(2.6)

(0.7)

－

(2.5)

Sony Financial Holdings Inc. All Rights ReservedSony Financial Holdings Inc. All Rights Reserved

Line item amounts are truncated below ¥ 100 million;
numbers of policies are truncated below 100 policies;
percentage change figures are rounded17

Attachment

Highlights of Operating PerformanceSony Assurance
Ordinary revenues

Ordinary profit

FY12.3Q(9M)(Billions of yen)

67.4

+5.7%

63.8

Ordinary revenues

FY13.3Q(9M)

Change

63.8

67.4

+3.6

+5.7%

Underwriting income

63.0

66.5

+3.5

+5.6%

Investment income

0.7

0.8

+0.1

+19.9%

62.7

64.6

+1.9

+3.1%

Underwriting expenses

47.6

49.2

+1.6

+3.4%

Investment expenses

0.0

0.0

(0.0)

(62.3%)

Operating, general andadministrative expenses

15.0

15.4

+0.3

+2.1%

Ordinary profit

1.0

2.7

+1.7

+164.8%Net income

0.5

1.7

+1.1

+191.4%13.3.31

13.12.31

Ordinary expenses

2.7+164.8%1.0
FY12.3Q (9M)

FY13.3Q (9M)(Billions of yen)

◆ Ordinary revenues and ordinary profit increased
year on year.
◆ Ordinary revenues increased year on year, due
to an increase in net premiums written primarily
for its mainstay automobile insurance◆ Ordinary profit increased year on year due to a
decline in the loss ratio mainly led by the revisionof premium rates for automobile insurance and alower car accident ratio owing to the introductionof a new bonus-malus system (non- fleet driver
rating system), in addition to a decline in the
expense ratio.

(Billions of yen)

Change from
13.3.31

Underwriting reserves

70.6

76.3

+5.7

+8.2%

Total net assets

19.9

21.7

+1.8

+9.2%

Total assets

127.4

136.9

+9.5

+7.5%

Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

Sony Financial Holdings Inc. All Rights Reserved

19

Overview of Performance:
Sony Assurance<Reasons for changes>
FY12.3Q (9M)

FY13.3Q (9M)

Direct premiums written

62.1

65.5

+5.4%

Net premiums written

62.9

66.5

+5.6%

Net losses paid

35.0

35.0

(0.0%)

Underwriting profit

0.3

1.9

+478.3%Net loss ratio

62.4%

59.7%

(2.7pt)Net expense ratio

25.5%

24.6%

(0.9pt)Combined ratio

87.9%

84.3%

(3.6pt)(Billions of yen)（億円）

Change◆ Increased primarily in its mainstay
automobile insurance.
◆ Decreased mainly led by therevision of premium rates forautomobile insurance and a lower
car accident ratio owing to theintroduction of a new bonus-malus
system.
◆ Declined due to a proper control of
insurance acquisition cost, in
addition to a rise in automobile
insurance premiums.

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

Number of policies in force
Non-consolidated
solvency margin ratio

13.3.31

13.12.31

Change from 13.3.31

1.55 million

1.59 million+0.04 million

504.2％

547.7%+43.5pt+2.8%

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.
Line item amounts are truncated below ¥ 100 million;
numbers of policies are truncated below 10,000 policies;
percentage change figures are rounded.

Sony Financial Holdings Inc. All Rights Reserved20

Attachment

Sony Assurance’s Underwriting Performanceby Type of Policy
Direct Premiums Written

Net Premiums Written

FY12.3Q(9M)

FY13.3Q(9M)

Change

Fire

171

184

+7.2%

Marine－－－Personal accident*

5,883

6,234

+6.0%

Voluntary automobile

56,12959,151

+5.4%

－

－

－

62,18565,569+5.4%(Millions of yen)Compulsory
automobile liability
Total

FY12.3Q(9M)

FY13.3Q(9M)

Change

Fire

80

92

+14.8%

Marine105118+12.6%

Personal accident*

6,073

6,440

+6.0%

Voluntary
automobile

55,922

58,959+5.4%

Compulsory
automobile liability

805

931

+15.7%

Total

62,98766,542+5.6%(Millions of yen)

Net losses paid

*SURE, medical and cancer insurance is included in personal accident.

FY12.3Q(9M)

FY13.3Q(9M)

ChangeFire01+108.7%

Marine160101(37.0%)

Personal accident*

1,467

1,537

+4.8%

Voluntary automobile

32,66232,559(0.3%)

Compulsory
automobile liability

750

840

+12.1%

35,04135,040(0.0%)(Millions of yen)

Total

Line item amounts are truncated below ¥ 1 million;
percentage change figures are rounded.

Sony Financial Holdings Inc. All Rights Reserved

21

Operating Performance:
Sony Assurance (1)Net Premiums Written andNumber of Policies in Force
Voluntary automobile insurance
Others70
60

Personal accident insurance

Number of policies in force

0.7 59.4
5.6

1.54
0.9

62.9
6.0

1.59

Ordinary profit

Adjusted ordinary profit

3.3

3.7
3.2

2.7

1.6

+5.6%

66.5 1.1
6.4

2.7

1.4
2.2

1.2
1.7

55.9

50

(Billions of yen)

(Millions of policies)+2.8%(Billions of yen)80
1.47

Ordinary Profit andAdjusted Ordinary Profit

58.9+164.8%

1.6

1

52.9

1.0

1.2

40

0.8

30

0.6

20

0.4

10

0.2

0.7
0.7

(0.1)

0.2
-0.3
FY11.3Q (9M)

FY12.3Q (9M)

FY13.3Q (9M)

*Adjusted ordinary profit = Ordinary profit + Provision for catastrophe reserve

00
FY11.3Q

FY12.3Q

FY13.3Q(Reference) Provision for catastrophe reserve
FY11.3Q(9M)
Provision for catastrophe reserve

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.

(0.9)(Billions of yen)

FY12.3Q(9M)

FY13.3Q
(9M)

(1.1)

0.6

*Reversal for catastrophe reserve is described as negative amount.
Line item amounts are truncated below ¥100 million; numbers of policies aretruncated below 10,000 policies; percentage change figures are rounded.

Sony Financial Holdings Inc. All Rights Reserved

22

Attachment

Operating Performance:
Sony Assurance (2)Earned/Incurred Loss Ratio +Net Expense Ratio
Earned/Incurred loss ratio

100

98.9

(Net Loss Ratio+ Net Expense Ratio)
Net loss ratio

Net expense ratio

(%)

98.1

(Reference) Combined Ratio

97.0

Net expense ratio

(%)

98.9

100

93.3

89.2

89.0

87.4

87.9

84.3

(5.6pt)

60

71.5
72.4

73.4

61.8

60

68.7

72.9

(4.7pt)

63.3

63.2

25.7

26.0

62.4
59.7

(2.7pt)

40

40

20

(3.6pt)

80

80

25.7

26.0

20

(0.9pt)

25.5

25.5

24.6

FY12.3Q

FY13.3Q

25.5

25.5

FY11.3Q

FY12.3Q(0.9pt)

24.6

0

0
FY11

FY12

FY11.3Q

(1Y)

FY11

FY12

(1Y)

(9M)

Notes:
Earned/Incurred 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.]

FY13.3Q(9M)

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

23

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

(%)

800

557.8%

547.7%

504.2%+43.5pt

400

012.3.3113.3.31

13.12.31

Sony Financial Holdings Inc. All Rights Reserved24

Attachment

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

27.0(Billions of yen)

25.1
+7.5%

5.2

FY13.3Q(9M)

ChangeConsolidated ordinary revenues

25.1

27.0

+1.8

+7.5%

Consolidated ordinary profit

2.8

5.2

+2.3

+82.6%

Consolidated net income

2.2

3.2

+0.9

+43.4%

FY12.3Q(9M)

FY13.3Q(9M)<Non-consolidated>+82.6%(Billions of yen)

2.8
FY12.3Q (9M)

FY12.3Q(9M)

FY13.3Q (9M)(Billions of yen)<Consolidated>◆Ordinary revenues increased year on year due to higher gains on
foreign exchange transactions stemming from customers’ active
foreign currency trading and a rise in interest income on loans led
by the growing balance of mortgage loans. Ordinary profit
expanded year on year due mainly to an improvement in net
gains on bond-dealing transactions and a decrease in interest
expenses.
<Non-consolidated>◆ Both gross operating profit and net operating profit increased
year on year.
-Net interest income increased owing to a rise in interest income
on loans led by the growing balance of mortgage loans, and adecrease in interest expenses.
-Net other operating income increased due mainly to higher gains
on foreign exchange transactions stemming from customers’
active foreign currency trading, in addition to an improvement in
net gains on bond-dealing transactions.

ChangeOrdinary revenues

22.8

25.1

+2.3

+10.4%

Gross operating profit

13.3

16.4

+3.1

+23.5%Net interest income

13.1

15.0

+1.9

+14.9%Net fees and commissions

(0.0)

(0.2)

(0.2)

―

Net other operating income

0.1

1.6

+1.4

+718.1%

General and administrative expenses

10.5

10.9

+0.3

+3.7%

Net operating profit

2.8

5.5

+2.7

+96.4%

Ordinary profit

2.6

5.4

+2.7

+104.8%Net income (loss)

(0.1)

3.3

+3.5

―

13.3.31

13.12.31

67.8

71.9

+4.1

+6.1%

6.5

6.6

+0.0

+1.3%

2,005.0

2,025.0

+19.9

+1.0%

(Billions of yen)
Total net assets
Net unrealized gains onother securities, net of taxes
Total assets

Change from
13.3.31

Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

Sony Financial Holdings Inc. All Rights Reserved

25

Overview of Performance:
Sony Bank (Non-consolidated) (1)<Reasons for changes>
Change from
13.3.3112.12.31

13.3.31

13.12.31

Customer assets

1,973.0

1,974.3

1,972.9(1.4)(0.1%)

Deposits

1,868.4

1,857.4

1,857.4

+0.0

+0.0%

Yen

1,488.9

1,467.2

1,504.4

+37.2

+2.5%

379.4

390.2

353.0

(37.2)(9.5%)

Investment trusts

104.6

116.9

115.4

(1.4)

(1.3%)

Loans outstanding

929.7

970.2

1,025.1

+54.9

+5.7%

Mortgage loans

830.6

860.3

917.0

+56.6

+6.6%

(1.7)

(1.6%)(Billions of yen)

Foreign currency

OthersCapital adequacy ratio(domestic criteria) *2
Tier 1 ratio

*1

99.1

109.8

108.1

10.71%

11.98%

11.92%(0.06pt)

8.91％

8.85%

9.12%

+0.27pt◆ Yen deposits increased fromMarch 31, 2013 due to an effect ofconverting from foreign currencies
to yen.

◆ Foreign currency deposit balance
decreased due to an increase in
selling to lock in profits led by yen
depreciation.
◆ Loan balance increased due an
increase in the balance ofmortgage loans.

*1 Loans in others include corporate loans of ¥102.2 billion.
*2 Please refer to the graph of the non-consolidated capital adequacy ratio (domestic criteria) on P28.

Line item amounts are truncated below ¥100 million;
percentage change figures are rounded.

Sony Financial Holdings Inc. All Rights Reserved26

Attachment

Overview of Performance:
Sony Bank (Non-consolidated) (2)<Reference> On Managerial Accounting Basis(Billions of yen)

FY13.3Q
(9M)

13.2

16.3

+3.1

+23.6%

13.0

13.7

+0.6

+5.0%

Gross operating profit
Net interest income*1①

Net fees and commissions*2<Reference> Interest Spread(Managerial Accounting Basis)

FY12.3Q (9M)②

ChangeYield on investment

0.4

0.6

+0.2

+47.0%Net other operating income*3

(0.2)

2.0

+2.2

－

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

13.5

14.3

+0.8

+6.5%

Operating expenses and otherexpenses ③

10.4

10.8

+0.3

+3.8%

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

3.0

3.5

+0.4

+15.5%

Yield on financing

Interest spread
(%)

2.00

1.50

■ Managerial accounting basis
The following adjustments are made to the figures on a financial accounting basis toaccount for profits and 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 inforeign currency transactions recorded in net other operating income.
*3: Net other operating income: After the above adjustments (*1 and *2), consists ofprofits and losses for bond and derivative dealing transactions.
■ Core profit
Profits and losses exclude net other operating income, which includes those on
bond and derivative dealing transactions, and stands for Sony Bank’s basic profits.

1.28

1.00

0.91

0.50

0.37

1.21

0.93
0.93

+0.02pt

0.27

0.00
FY12.3Q (9M)

FY13.3Q (9M)

Note: Interest spread=(Yield on investment)-(Yield on financing)Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

Sony Financial Holdings Inc. All Rights Reserved

27

Operating Performance:
Sony Bank (Non-consolidated) (1)
Deposits
Yen deposits

Loans
Mortgage loans

Foreign currency deposits

Others(Billions of yen)
1,200(Billions of yen)

1,025.1
2,000

1,762.2

1,857.4

1,857.4
+0.0

970.2

1,000

108.1
+54.9

835.5
353.0

*Corporate loansof ¥102.2 billion.

800

1,500

917.0

600
1,000

1,504.4
400

500

200

0

0
12.3.3113.3.31

13.12.31

12.3.3113.3.31

13.12.31

Line item amounts are truncated below ¥100 million.

Sony Financial Holdings Inc. All Rights Reserved28

Attachment

Operating Performance:
Sony Bank (Non-consolidated) (2)Balance of Securities by Credit Rating
AAA
BBB

AA
A
Others

Non-Consolidated Capital Adequacy Ratio(Domestic Criteria)
Capital adequacy ratio

Tier1 ratio

(%)

15

(Billions of yen)
1,200

11.98

(0.06pt)

11.92+0.27pt

9.12

11.58
1,000

912.9

908.8
782.5

10

800

9.63
(126.2)

8.85

600

5
400

200

0
12.3.31012.3.3113.3.31

13.12.31

13.3.31

13.12.31*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 thebank.
Amounts are truncated below ¥100 million.

Sony Financial Holdings Inc. All Rights ReservedSony Financial Holdings Inc. All Rights Reserved29

Attachment

Consolidated Financial Forecast
for the Fiscal Year Ending March 31, 2014

Sony Financial Holdings Inc. All Rights Reserved

31

Consolidated Financial Forecast
for the Fiscal Year Ending March 31, 2014
Consolidated ordinary revenues, ordinary profit and net income have been revised upward.
(Billions of yen)

FY2012(Actual)

FY2013(Forecast)

Changed from FY2012

Consolidated ordinary revenues

1,259.0

1,222.0⇒1,304.0(2.9%) ⇒+3.7%

Life insurance business
Non-life insurance businessBanking business

1,142.3
84.7
34.3

1,099.9⇒1,179.8
89.5
34.9

(3.7%)⇒+3.3%
+5.7%
+1.7%

Consolidated ordinary profit

79.2

69.0⇒75.0(12.9%)⇒(5.4%)

Life insurance business
Non-life insurance businessBanking business

72.7
2.3
3.9

61.4⇒65.7
3.8
5.2(15.5%)⇒(9.7%)+60.2%+31.5%

Consolidated net income

45.0

37.0⇒40.0(17.9%)⇒(11.2%)

On February 6, 2014, we have revised upward our consolidated financial forecast for ordinary revenues, ordinary profit and net income for the fiscal year ending March 31,
2014, from the forecast announced on May 9, 2013. This is because the operating results for the nine months ended December 31, 2013, exceeded our previous estimates inall the businesses. Forecasts of the non-life insurance and the banking businesses were revised upward on November 15, 2013, reflecting favorable operating results during
the first half of this fiscal year.
■Life insurance businessWe have revised our full-year forecast for ordinary revenues and ordinary profit from our previous forecast announced in May 2013 because operating results for the ninemonths ended December 31, 2013, exceeded our previous estimates, resulting mainly from the market recovery. Since financial conditions are uncertain after January 2014,
our updated forecast reflects financial conditions as of the end of January 2014.
■Non-life insurance business
The forecast for ordinary revenues remains unchanged from the forecast announced in November 2013 because we expect net premiums written in automobile insurance tocontinue to increase steadily. The forecast for ordinary profit remains unchanged because we expect a stably low loss ratio in the fourth quarter despite a temporary rise in theloss ratio reflecting a surge in provision of reserve for outstanding losses in this third quarter.
■Banking business
The forecast for ordinary revenues remains unchanged from the forecast announced in November 2013 because ordinary revenues are expected to increase due to higher
gains on foreign exchange transactions stemming from customers’ active foreign currency trading and a rise in interest income on loans led by the growing balance of mortgage
loans. The forecast for ordinary profit remains unchanged despite an increase in net interest income because we expect to record a temporary loss related to bondtransactions in the fourth quarter.
In its calculation of the reserve for price fluctuations, Sony Life has accumulated reserves in excess of required levels. However, Sony Life will change this policy to one of accumulating reserves
up to required levels from the fiscal year ending March 31, 2015.
Line item amounts are truncated below ¥100 million; percentage change figures are roundedSony Financial Holdings Inc. All Rights Reserved

32

Attachment

Sony Life’s MCEV and
Risk Amount Based on Economic Valueas of December 31, 2013

Sony Financial Holdings Inc. All Rights Reserved

33Sony Life’s MCEV as of December 31, 2013
13.3.3113.9.31

13.12.31

Change from
13.3.31

Change from
13.9.30

1,064.7

1,158.2

1,186.9+122.2+28.7

Adjusted net worth

770.8

682.1

698.5

(72.4)+16.4

Value of existing business

293.9

476.1

488.4

+194.6+12.4(Billions of yen)

MCEV

Notes:
1. Calculated MCEV for policies in force as of September 30 and December 31, 2013 by using updated lapse and surrender rate and economic assumptions.
2. Adopted simplified method for a part of MCEV calculations as September 30 and December 31, 2013.

(Billions of yen)

New business value
New business margin13.3.3141.6 (12M)
3.5%

13.9.30
29.7 (6M)
6.3%

13.12.31
45.2 (9M)
5.5%(*) New business margin equals new business value divided by present value of premium income.

 MCEV as of December 31, 2013 increased ¥28.7 billion from September 30, 2013, due mainly to an
acquisition of new policies.
 New business margin as of December 31, 2013 was up from March 31, 2013, due mainly to higher interest
rates in the ultra-long term and the revision of Sony Life’s insurance premium rates on some of its
products in April 2013. New business margin was down from September 30, 2013, due mainly to anincrease in the sale of lump-sum payment endowment insurance.
*Please see page 43 for trend on JGB yields.

* Please keep in mind that the validity of these calculations has not been verified by outside specialists.
Sony Financial Holdings Inc. All Rights Reserved34

Attachment

Sony Life’s Risk Amount Based on Economic Valueas of December 31, 2013
(Billions of yen)

13.3.3113.9.30

13.12.31

Insurance risk

605.6

610.4

621.1

Market-related risk

289.9

260.1

260.8

234.2

201.0

198.3

Operational risk

26.0

25.2

27.9

Counter party risk

2.3

1.5

2.0

Variance effect(262.5)(253.7)(256.9)The risk amount based on economic value

661.3

643.5

654.8

Of which, interest rate risk*(Billions of yen)

13.3.3113.9.30

1,064.7

MCEV

1,158.2

13.12.31
1,186.9(*) Interest amount excluding the variance effect within market-related risk.

 Maintained capital adequacy by controlling market-related risk.
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
and market-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.

* Please keep in mind that the validity of these calculations has not been verified by outside specialists.

Sony Financial Holdings Inc. All Rights Reserved

35

AppendixSony Financial Holdings Inc. All Rights Reserved36

Attachment

Recent Topics 1
AEGON Sony Life Insurance
Launch of sales: December 1, 2009
Common stock: ¥22 billion (including capital surplus of ¥11 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 (15*) *As of Feb. 14, 2014
SA Reinsurance Ltd.
Established： October 29, 2009
Common stock: ¥8 billion
Equity ownership: Sony Life insurance Co., Ltd. 50%, AEGON international B.V. 50%
Business： Reinsurance business* AEGON Sony Life Insurance and SA Reinsurance are equity method companies, 50-50 joint ventures established by Sony Life and AEGON Group.

Sony Bank’s Mortgage Loans through Sony Life
■Sony Life accounts for 24% of the balance of mortgage loans as of December 31, 2013
Sony Life accounts for 18% of the amount of new mortgage loans for FY13.3Q (9M)*Sony Life started handling banking agency business in January 2008.

Sony Assurance’s Auto Insurance Sold by Sony Life
■Sony Life accounts for approx. 5% of new automobile policies for FY13.3Q (9M)*Sony Life started handling automobile insurance in May 2001.
* “Lifeplanner” is a registered trademark of Sony Life.

Sony Financial Holdings Inc. All Rights Reserved

37

Recent Topics 2<Highlights for FY2013.3Q>
10/28/2013 Sony Bank launched new service: automatic saving plans for foreign currency deposits.
10/31/2013 Sony Bank closed its representative office in Sydney.
11/11/2013

The Sony Financial Group entered the nursing care business, acquiring Senior Enterprise
Corporation as a wholly owned subsidiary of SFH.

12/2/2013

Sony Bank introduced paperless procedures to open bank accounts.

Sony Bank announced plans to issue the new Sony Card with an enhanced credit and12/19/2013 settlement function through a tie-up with Sumitomo Mitsui Card Company, with this credit
card being offered to customers from February 7, 2014.
1/2/2014

Sony Life started selling new educational endowment insurance (non-participating type).

1/10/2014

Sony Bank enhanced its settlement function by starting withdrawal services for credit card
payments for Sumitomo Mitsui Card holders.

Sony Financial Holdings Inc. All Rights Reserved38

Attachment

Sony Life: Fair Value Information on Securities(General Account Assets)
Fair Value Information on Securities
Fair Value Information on Securities(Billions of yen)

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

Notes: 1) Line item amounts are truncated below ¥100 million. 2) Amounts above include those categorized as “monetary trusts.”

Sony Financial Holdings Inc. All Rights Reserved

39Sony Life’s Interest Income and Dividends (Details)(Millions of yen)

FY12.3Q (9M)

FY13.3Q (9M)

ChangeCash and deposits
Japanese governmentand corporate bonds
Japanese stocks

00(35.4%)

64,73972,947+12.7%

351

234(33.2%)

Foreign securities

2,802

4,872

+73.8%

Other securities

177

172

(2.9%)

Loans

4,085

4,264

+4.4%

Real estate

8,143

7,716

(5.2%)

5723(58.6%)

80,357

90,232+12.3%

Others
Total

Line item amounts are truncated below ¥1 million

Sony Financial Holdings Inc. All Rights Reserved40

Attachment

Sony Life’s Quarterly Trend on New Policies Amount
Quarterly Trend on New Policy Amount(Billions of yen)

New policy amount

1,201.9

1,175.4

1,200

1,128.3
1,066.5

1,054.4
997.3

1,000

1,238.7

976.1

1,033.3
947.4
841.4

800
600
400
200
0
FY11.1Q FY11.2Q FY11.3Q FY11.4Q FY12.1Q FY12.2Q FY12.3Q FY12.4Q FY13.1Q FY13.2Q FY13.3Q
Line item amounts are truncated below ¥100 million.

Sony Financial Holdings Inc. All Rights Reserved

41Sony 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)

24.0

22.0

22.0
19.8

20.0
18.0

19.0
17.6

17.1

18.5

17.4

16.8

16.0

16.0

14.6
13.2

14.0
12.0
10.0
8.0
6.0
4.0
2.0

4.2

4.9
3.8

4.0

4.4

5.0

5.2

3.6

3.9

3.0

3.6

0.0
FY11.1Q FY11.2Q FY11.3Q FY11.4Q FY12.1Q FY12.2Q FY12.3Q FY12.4Q FY13.1Q FY13.2Q FY13.3Q
Line item amounts are truncated below ¥100 million

Sony Financial Holdings Inc. All Rights Reserved42

Attachment

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

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

Equity risk

Sony Life(Reference) EU Solvency II (QIS5)-For each currency, uses whatever interest rateincrease or decrease generates the largest loss
- Percentage increases or decreases differ for eachcurrency and term (example: yen 10-year, 49%
decrease)
However, a minimum decrease of 1% with minimum
interest rate of 0%-For each currency, uses whatever interest rateincrease or decrease generates the largest loss
-Percentage increases or decreases differ foreach currency and term
(example, yen 10-year, 31% decrease)
However, a minimum decrease of 1% withminimum interest rate of 0%-Listed equities and REIT 45% decline-Global 30%-Unlisted equities 55%-Others 40% (Note 2)-Other securities 70%-Subsidiaries, affiliated companies and strategic
investment 100%
Real estate risk

Actual real estate 25%

Same as on the left

Credit risk

Credit risk = (market value) x (risk coefficient foreach credit rating) x adjusted duration
Note that adjusted durations have caps and floors,
depending on credit ratings.
(Example)
Rating A: Risk coefficient (1.4%), cap (23), floor (1)Same as on the left

Currency risk

30% downside fluctuation

25% downside fluctuation

Notes
1. Principal items as of December 31, 2013. Market-related risk quantification follows the QIS5 approach in principle. However, Sony Life modified it to make it moresuitable to Japanese market by adapting the past and latest data of the market which is different from the method prescribed in QIS5.
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 (December 31, 2009), these were 30%/40%.

Sony Financial Holdings Inc. All Rights Reserved

43

Method of Measuring Risk Amount
Based on Economic Value (2) Insurance Risk

Sony Life
Mortality risk

(Reference) EU Solvency II (QIS5)

Mortality rate increases by 15% for each year elapsed

Same as on the leftLongevity risk Mortality rate decreases by 20% for each year elapsed

Same as on the left

Lapse risk

The largest amount of these*;

The largest amount of these;-Lapse rate increases by 50% for each year elapsed-Lapse rate decreases by 50% for each year elapsed-Increase by 50% in the assumed rates of lapsation
for Life module, 20% for Health module-30% of policies on which surrender value is in excess
of best estimate liability are immediately surrendered-Decrease by 50% in the assumed rates of lapsation
for Life module, 20% for Health module-30% of policies (70% for group annuities, etc.) on
which surrender value is in excess of best estimate
liability are immediately surrendered

Expense risk

Operating expenses increase by 10% for each year
elapsedDisability risk

Rate of occurrence increases by 35% in the first fiscal
year, rising by 25% for each year thereafter

Same as on the left

Rate of inflation rises by 1%
Rate of occurrence increases by 35% in thefirst fiscal year, rising by 25% for each year
thereafter. Recovery rate decreases by 20%.
* At Sony Life, lapse risk is calculated by computing and adding together the largest amount of three options for each insurance policy.

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Attachment

Appendix：JGB Yields

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

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