November 14, 2016
Sony Financial Holdings Inc.

Summary Information on Sony Assurance’s Financial Results
for the Six Months Ended September 30, 2016
<Contents>
1. Balance Sheets

P.2

2. Statements of Income

P.3

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

P.4

4. Premiums and Losses Paid by Type of Policy

P.5

5. Risk-monitored Loans

P.5

6. Securities

P.6

7. Non-consolidated Solvency Margin Ratio

P.7

11. Balance Sheets(Millions of yen)
As ofSeptember 30, 2016

As ofMarch 31, 2016
Assets:Cash and deposits

8,381

9,227

127,256

132,188

Tangible fixed assets

4,024

3,805

Intangible fixed assets

5,988

7,333

Other assets

20,363

18,172

Accounts receivable

13,493

11,144

Others

6,870

7,028

6,308

7,149

172,323

177,876

133,246

139,367

Reserve for outstanding losses and claims

37,542

39,146

Underwriting reserves

95,704

100,221

8,339

7,386

Income taxes payable

1,442

1,614

Others

6,897

5,771

Reserve for employees’ retirement benefits

1,281

1,374

Reserve for directors’ retirement benefits

4433

Reserve for employees’ bonuses

956

989

Reserve under the special laws

149

163

Reserve for price fluctuations

149163144,018

149,314

Common stock

20,00020,000Capital surplus

3,389

3,389

Retained earnings

2,586

3,769

Total shareholders' equity

25,97627,159Net unrealized gains (losses) on other securities, net of taxes

2,328

1,403

Total valuation and translation adjustments

2,328

1,403

28,30528,562

172,323

177,876

Securities

Deferred tax assets
Total Assets
Liabilities:
Underwriting reserves

Other liabilities

Total Liabilities
Net Assets:
Shareholders’ equity

Valuation and translation adjustments

Total Net Assets
Total Liabilities and Net Assets22. Statements of Income(Millions of yen)
For the six months ended
September 30, 2015
Ordinary Revenues

For the six months ended
September 30, 2016

48,25050,26647,601

48,96747,574

48,934

27

33

631

1,277

648

661

9

649

(27)

(33)

17

21

45,49846,898Underwriting expenses

33,46834,641(Net losses paid)

23,03324,046(Loss adjustment expenses)

3,568

3,683

732

790

(Provision for reserve for outstanding losses)

1,256

1,603

(Provision for underwriting reserves)

4,877

4,517

Underwriting income(Net premiums written)(Interest and dividends on deposits of premiums)
Investment income(Interest income and dividends)(Gains on sale of securities)(Transfer to interest and dividends on deposits of premiums)

Other ordinary income
Ordinary Expenses(Net commissions and brokerage fees)

Investment expenses(Losses on sale of securities)
Operating, general and administrative expenses
Other ordinary expenses
Ordinary Profit2-

2-

12,025

12,25322

2,751

3,368--

Extraordinary Gains
Extraordinary Losses

1213

Losses on sale or disposal of fixed assets

00

Provision for reserve under the special laws

12131213

Income Before Income Taxes

2,738

3,355

Income Taxes –Current

1,052

1,358

Income Taxes –Deferred(305)(480)

Total Income Taxes

747

878

1,991

2,476

Provision for reserve for price fluctuations

Net Income3

3. Financial Summary (Year-on-Year Comparison)(Millions of yen)
For the six months ended For the six months ended
September 30, 2015
September 30, 2016

Change(Amount)

Change(%)

Gross direct premiums written

46,96348,3191,356

2.9(Direct premiums written)

46,96348,3191,356

2.9

47,601

48,9671,366

2.9

47,574

48,9341,359

2.9

Underwriting expenses

33,46834,641

1,172

3.5(Net losses paid)

23,03324,046

1,012

4.4(Loss adjustment expenses)

3,568

3,683

114

3.2

732

790

57

7.9

631

1,277

646

102.4

648

661

12

2.0

9

649

639

6,565.2

Underwriting income(Net premiums written)

Ordinary Income (expenses)(Net commissions and brokerage fees)
Investment income(Interest income and dividends)(Gains on sale of securities)
Investment expenses(Losses on sale of securities)
Operating, general and administrative expenses(Operating, general and administrative
expenses related to underwriting)
Other ordinary income, net
Ordinary profit(Underwriting profit)

2-

(2)

(100.0)2-(2)(100.0)Extraordinarygains (losses)

12,025

12,253228

1.9

11,988

12,226

238

2.0

15

18

3

21.0

2,751

3,368

617

22.4

2,144

2,099

(44)

(2.1)

--

Extraordinary Gains--

Extraordinary Losses

12130

Extraordinary gains (losses), net

(12)

(13)

(0)

Income Before Income Taxes

2,738

3,355

616

22.5

Income Taxes -Current

1,0521,358306

29.1

Income Taxes -Deferred(305)(480)(174)

Total Income Taxes

747878

131

17.5

1,991

2,476

485

24.4

Net loss ratio

55.9 ％

56.7 ％Net expense ratio

26.7 ％

26.6 ％Net Income％7.1--Ratios

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. Ratios are calculated as follows:
Net loss ratio = (Net losses paid + Loss adjustment expenses) / Net premiums written x 100
Net expense ratio = (Net commissions and brokerage fees + Operating, general and administrative expenses related to underwriting) / Net premium written x 100

44. Premiums and Losses Paid by Type of Policy
Direct Premiums Written(Millions of yen)
For the six months ended
September 30, 2016

For the six months ended
September 30, 2015
Composition YoY Change

Amount%Fire

199

Marine0.4

AmountComposition

117

0.2%
66.2

YoY Change%%(41.2)------

Personal accident

4,321

9.2

1.0

4,388

9.1

1.6

Voluntary automobile

42,442

90.4

4.4

43,814

90.7

3.2

-

-

-

-

-

-

46,963100.0

4.2

48,319100.0

2.9Compulsory automobile liability
Total

Net Premiums Written(Millions of yen)

For the six months ended
September 30, 2016

For the six months ended
September 30, 2015
AmountComposition YoY Change%

AmountComposition%

YoY Change%%

Fire

28

0.1

73.5

120.0

(55.0)

Marine220.0(73.7)(2)(0.0)(111.1)

Personal accident

4,461

9.4

1.14,527

9.3

1.5

Voluntary automobile

42,34989.0

4.4

43,686

89.3

3.2

Compulsory automobile liability
Total

712

1.5

6.2

709

1.4(0.5)

47,574100.0

4.048,934100.0

2.9

Net Losses Paid

(Millions of yen)

For the six months ended
September 30, 2015
Amount

For the six months ended
September 30, 2016

YoY Change Net loss ratio%

0(65.9)45.3

Marine100

36.4

Personal accident

1,207

7.1

Voluntary automobile

21,096

2.3

Total

YoY Change%

Fire

Compulsory automobile liability

AmountNet loss ratio%%

4491.3119.6449.6(11)(111.3)

30.1

1,228

1.7

30.1

57.9

22,175

5.1

58.9

-628

4.6

88.2

649

3.3

91.6

23,0332.7

55.9

24,046

4.4

56.7

5. Risk-monitored LoansNone

56. Securities(1) Held-to-maturity securities(Millions of yen)
As of March 31, 2016
Balancesheet
amountJGBs andcorporate
bonds
Fair value is higher
than balance sheet
Foreignamountsecurities
Subtotal
Fair value is lower
than balance sheet
amountBalancesheet
amountFair value

Difference

Fair value

Difference

71,05092,796

21,74572,09895,302

23,204

197

221

23

197

217

20

71,24893,017

21,76972,295

95,52023,224

---

1,712

1,627

(85)

71,24893,017

21,76974,00897,147

23,138JGBs andcorporate
bonds

Total

As of September 30, 2016

(2) Available-for-sale securities(Millions of yen)
As of March 31, 2016
Balancesheet
amountBalance sheet
amount is higher
than acquisition
cost

Balance sheet
amount is lower
than acquisition
cost

Total

As of September 30, 2016

Acquisition
cost

Difference

Balancesheet
amountAcquisition
cost

Difference

JGBs andcorporate
bonds

45,05444,78726649,742

49,445296

Japanesestocks

3,708

729

2,978

2,199

541

1,658

Subtotal

48,76245,517

3,245

51,941

49,986

1,954

JGBs andcorporate
bonds

6,190

6,201(10)

6,238

6,243

(5)

Others

1,055

1,055----

Subtotal

7,245

7,256(10)

6,238

6,243

(5)

56,00852,774

3,234

58,17956,2301,949

6

7. Non-consolidated Solvency Margin Ratio(Millions of yen)
As of March 31, 2016
(A) Total non-consolidated solvency margin
Capital or treasury, etc
Reserve for price fluctuations

As of September 30, 2016

42,70145,560

24,682

26,512

149

163

Contingency reserve

9196

Catastrophe reserve

14,363

15,920

-

-

2,910

1,754

Net unrealized gains on real estate--

Excess refund reserve--

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

-----

-

502

1,113

General reserve for possible loan losses
Net unrealized gains on other securities and net deferred gains(losses) on hedging instruments (before tax deductions)

Others(B) Total non-consolidated risk22(R1+R2) +(R3+R4) +R5+R6

12,313

12,536

10,906

11,136

Ordinary insurance risk

(R1)

Third-sector insurance risk

(R2)--Assumed interest rate risk

(R3)

96

100

Asset management risk

(R4)

1,416

1,345

Business management risk

(R5)

269

272

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

1,033

1,033

693.5 ％

726.8 ％[(A)／{(B)×1/2}]×100

Note: The above figures are calculated based on the 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.
<Non-consolidated Solvency Margin Ratio>
Non-life insurance companies maintain reserves to ensure their ability to pay claims when accidents occur and return contracted amounts at maturity
on savings-type insurance. Non-life insurance companies must also maintain sufficient ability to cover against risk events
which exceed its normal estimates, i.e. occurrence of a major catastrophe or a dramatic drop in the value of the assets they hold.
Total risk (item (B) in the table) indicates risk events which exceed the normal estimates. The non-consolidated solvency margin ratio(item (C) in the table) is an indicator of an insurer’s ability to pay, calculated as prescribed by the Insurance Business Act of Japan, basedon its percentage holdings of capital and other reserves (in other words, the total non-consolidated solvency margin, as indicated by (A))
“Risk events which exceed the normal estimates” refers to the total of the amounts represented by the following risks:(1) Insurance underwriting risk: Risk which exceeds the normal estimates for the rate of accident occurrence (excluding major(Ordinary insurance risk)
catastrophe risk)(Third-sector insurance risk)(2) Assumed interest rate risk

(4) Business management risk

: Risk that actual investment yields will fall below the investment yield assumed when calculating
premiums: Risk arising from such factors as unexpectedly large fluctuations in prices on held securities andother assets: Unexpected risk to business management other than (1) through (3) above and (5)(5) Major catastrophe risk

:Risk arising from major catastrophes (such as the Great Kanto Earthquake and the Ise Bay Typhoon)(3) Asset management risk

A non-life insurer’s ability to pay (total non-consolidated solvency margin), as indicated by such factors as its capital and reserves, is the total of theinsurer’s net assets (excluding the amount of expected outflow from the company), reserves (such as the reserve for price fluctuations andcatastrophe reserve) and a portion of its net unrealized gains on real estate.
The non-consolidated solvency margin ratio is one of the objective indicators used by the insurance regulatory authorities to supervise insurers. When
this ratio is 200% or higher, an insurer is judged to have sufficient ability to satisfy claims and other payments.
7