August 9, 2017
Sony Financial Holdings Inc.

Summary Information on Sony Assurance’s Financial Results
for the Three Months Ended June 30, 2017
<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. Non-consolidated Solvency Margin Ratio

P.61

1. Balance Sheets(Millions of yen)
As of March 31, 2017

As of June 30, 2017

Assets:Cash and deposits

8,951

7,604

137,553

143,152

Tangible fixed assets

3,399

3,126

Intangible fixed assets

6,529

5,988

Other assets

22,12520,603

Deferred tax assets

7,978

8,213

186,537

188,689

144,514

149,018

Reserve for outstanding losses and claims

38,34038,707

Underwriting reserves

106,173

110,310

9,877

8,267

Income taxes payable

1,746

1,019

Others

8,130

7,247

Reserve for employees’ retirement benefits

1,440

1,469

Reserve for directors’ retirement benefits

36

Securities

Total Assets
Liabilities:
Underwriting reserves

Other liabilities-

Reserve for employees’ bonuses

1,082

495

Reserve under the special laws

177

184

Reserve for price fluctuations

177

184

157,128159,434

Common stock

20,00020,000Capital surplus

3,389

3,389

Retained earnings

4,808

4,737

Total shareholders’ equity

28,19728,126

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

1,211

1,128

Total valuation and translation adjustments

1,211

1,128

29,40929,254

186,537

188,689

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 three months ended
June 30, 2016
Ordinary Revenues

For the three months endedJune 30, 2017

26,04628,04325,06527,571

25,04827,556

16

15

964

453

(Interest income and dividends)

333

334

(Gains on sale of securities)

648

134

(Transfer to interest and dividends on deposits of premiums)

(16)

(15)

16

18

23,181

25,668Underwriting expenses

17,032

19,000(Net losses paid)

11,734

12,180(Loss adjustment expenses)

1,805

1,824

(Net commissions and brokerage fees)

430

492

(Provision for reserve for outstanding losses and claims)

97

366

2,963

4,137

6,147

6,666

102,865

2,375

Underwriting income(Net premiums written)(Interest and dividends on deposits of premiums)
Investment income

Other ordinary income
Ordinary Expenses(Provision for underwriting reserves)

Operating, general and administrative expenses
Other ordinary expenses
Ordinary Profit
Extraordinary Gains-Extraordinary Losses

67

Losses on sale or disposal of fixed assets

0Provision for reserve under the special laws

67

6

7

2,858

2,368

Income Taxes –Current

932

884

Income Taxes –Deferred(118)(202)

Total Income Taxes

814681

2,044

1,686

Provision for reserve for price fluctuations

Income Before Income Taxes

Net Income3-3. Financial Summary (Year-on-Year Comparison)(Millions of yen)
For the three months
ended
June 30, 2016

For the three months
ended
June 30, 2017

Change(Amount)

Change(%)

Gross direct premiums written

24,78527,260

2,474

10.0

(Direct premiums written)

24,78527,260

2,474

10.0

25,06527,571

2,506

10.0

25,04827,556

2,508

10.0

Underwriting expenses

17,032

19,000

1,968

11.6

(Net losses paid)

11,734

12,180445

3.8(Loss adjustment expenses)

1,805

1,824

18

1.0

430

492

61

14.3964453(511)(53.0)(Interest income and dividends)

333

334

10.5

(Gains on sale of securities)

648

134(513)(79.3)--

Underwriting income(Net premiums written)

Ordinary Income (expenses)(Net commissions and brokerage fees)
Investment income

Investment expenses--%

Operating, general and administrative expenses

6,147

6,666

519

8.5

(Operating, general and administrative
expenses related to underwriting)

6,133

6,651

517

8.4

15

172

13.5

2,865

2,375(490)(17.1)

1,898

1,918

191.0

Other ordinary income, netOrdinary profit(Underwriting profit)
Extraordinary
Gains (losses)

Extraordinary Gains----

Extraordinary Losses

670

Extraordinary gains (losses), net(6)

(7)

(0)

-

2,858

2,368(490)(17.2)

Income Taxes —Current

932

884

(48)

(5.2)

Income Taxes —Deferred

(118)

(202)

(84)

-

Total Income Taxes

814

681

(132)

(16.3)

2,044

1,686(357)(17.5)Net loss ratio

54.1%

50.8%

Net expense ratio

26.2%

25.9%

Income Before Income Taxes

Net Income

9.1

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 10044. Premiums and Losses Paid by Type of Policy
Direct Premiums Written(Millions of yen)
For the three months ended
June 30, 2016
Composition

Amount

For the three months ended
June 30, 2017

Fire62MarinePersonal accident

2,190

Voluntary automobile

22,533

Total

52
2,178

3.2
-

100.0

(0.6)

91.8
-

2.9(15.4)-

8.0

25,029
-

%

0.2-

1.6

90.9

24,785%-8.8-

Compulsory automobile liability(30.4)-YoY Change

Composition

%

0.3-

AmountYoY Change%

27,260

11.1-

-

100.0

10.0

Net Premiums Written(Millions of yen)

For the three months endedJune 30, 2017

For the three months ended
June 30, 2016
AmountComposition

AmountYoY Change%

Composition%

YoY Change%%

Fire60.0(47.0)

40.0

Marine(1)(0.0)(116.4)

(0)

(0.0)

-Personal accident

2,281

9.1

1.6

2,229

8.1

(2.3)

Voluntary automobile

22,46889.7

3.1

24,969

90.6

11.1

293

1.2(5.9)

352

1.3

20.4

25,048100.0

2.8

27,556

100.0

10.0

Compulsory automobile liability

Total(40.6)Net Losses Paid(Millions of yen)

For the three months ended
June 30, 2016
AmountYoY ChangeFor the three months ended
June 30, 2017

Net loss ratio%

AmountYoY Change%

Fire0398.2(12)(203.8)Personal accident

609

2.7

29.6

645

5.9

32.2

10,813

4.4

55.8

11,219

3.8

51.9

324

6.8

110.6

311

(3.7)

88.4

11,7344.1

54.1

12,1803.8

50.8

Compulsory automobile liability

Total0-543.3%

MarineVoluntary automobile

85.0

Net loss ratio%

2236.6--

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

As of March 31, 2017

As of June 30, 2017

46,724

49,847

26,43928,126

177

184

Contingency reserve

101103

Catastrophe reserve

17,542

18,417

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

1,514

1,410

-

-

Excess refund reserve--

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

Others(B) Total non-consolidated risk

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

948

1,604

12,786

12,987
11,555

Ordinary insurance risk

(R1)

11,370Third-sector insurance risk

(R2)

-

Assumed interest rate risk

(R3)

105

107

Asset management risk

(R4)

1,431

1,522

Business management risk

(R5)

278

284

(R6)
Major catastrophe risk(C) Non-consolidated solvency margin ratio[(A)／{(B)×1/2}]×100

1,033

1,033

730.8 %

767.6 %

-Note: The above figures were 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.
A part of calculations for non-consolidated solvency margin ratio as of June 30, 2017 is calculated according to simplified methods
in major catastrophe risk. The figure is assumed to be equivalent to the amount as of March 31, 2017.
<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 prescribedby the Insurance Business Act of Japan, based on 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(Ordinary insurance risk)(excluding major catastrophe risk)(Third-sector insurance risk)(2) Assumed interest rate risk
: Risk that actual investment yields will fall below the investment yield assumed whencalculating premiums(3) Asset management risk
: Risk arising from such factors as unexpectedly large fluctuations in prices on heldsecurities and other assets(4) Business management risk
: 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)

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 the insurer’s net assets (excluding the amount of expected outflow from the company), reserves (such as the reservefor price fluctuations and catastrophe 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.
6