November 15, 2010
Sony Financial Holdings Inc.

Summary Information on Sony Life’s Financial Results
for the Six Months Ended September 30, 2010
<Contents>
1. Key Performance Results

P.2

2. Investment of General Account Assets during the Six Months Ended September 30, 2010

P.4

3. Status of Investment Assets (General Account Assets)

P.5

4. Balance Sheets (Non-consolidated)

P.10

5. Statements of Income (Non-consolidated)

P.11

6. Reconciliation to Core Profit and Non-consolidated Ordinary Profit

P.12

7. Loans by Borrower Category

P.13

8. Risk-Monitored Loans

P.13

9. Solvency Margin Ratio

P.14

10. Status of Separate Account Assets

P.15

11. Consolidated Summary

P.16

12. (Reference 1) Results for the Three Months Ended September 30, 2010

P.19

13. (Reference 2) Holdings of Securitized Papers and Other Sub-prime Related Investments

P.23

1. Key Performance Results(1)Policy Amount in Force and New Policy Amount
Policy amount in force(Number: Thousand, Amount: 100 millions of yen, %)As of September 30, 2009

As of September 30, 2010

As of March 31, 2010

Category
NumberIndividual life
insurance
Individual annuities

Amount% YoY
ChangeNumber% Change fromMarch 31, 2010

Amount% YoY
Change% Change fromMarch 31, 2010

NumberAmount4,795

326,001

5,116

106.7

103.3

338,020

103.7

101.9

4,954

331,641

53

2,974

57

108.3

103.7

3,164

106.4

103.2

55

3,066

Subtotal

4,848

328,975

5,174

106.7

103.3

341,185

103.7

101.9

5,010

334,707

Group life insurance－

11,107－－－

11,333

102.0

100.5

－

11,274

Group annuities

－

727

－

－

－

722

99.4

99.9

－

723

Notes:

1. Policy amounts for individual annuities are equal to the sum of (a) the funds to be held at the time annuity payments are to commence for policies
for which annuity payments have not yet commenced and (b) the amount of policy reserves for policies for which payments have commenced.
2. The policy amount in force for group annuities is equal to the amount of outstanding policy reserves.

New poilicy amount(Number: Thousand, Amount: 100 millions of yen, %)For the six months ended September 30, 2009

For the six months ended September 30, 2010

Category
NumberIndividual life
insurance
Individual annuities

AmountNew policies

Increase from
Conversion% YoY
ChangeNumber% YoY
ChangeAmountNew Policies

Increase from
Conversion

273

18,03618,036

－

292

106.9

20,527113.8

20,527

－

3

148

148

－

3

104.4

157

106.0

157

－

－

－

Subtotal

276

18,18418,184295

106.9

20,684113.7

20,684

Group life insurance

－

39

39

－

－

90

229.6

90

Group annuities

－

－

－

－

－

－

－

－

Notes:

1. The new policy amount including increase from conversion for individual annuities is equal to the funds held at the time annuity payments commence.
2. The new policy amount for group annuities is equal to the initial premium payment.

(2) Annualized Premiums
Policy amount in force
Category
Individual life insurance(Millions of yen, %)As of September 30, 2009

As of
September 30, 2010

% YoY Change% Change fromMarch 31, 2010

As of March 31, 2010

548,533

577,899

105.4

102.6

563,002

Individual annuities

9,936

11,754

118.3

113.8

10,329

Total

558,470589,653

105.6

102.8

573,331

129,658

136,668

105.4

102.7

133,023

Of which, medical protection,living benefit protection, etc.

New policies(Millions of yen, %)Category

For the six months ended
September 30, 2009

For the six months ended
September 30, 2010

% YoY Change

31,37034,095

108.7

Individual annuities

658

863

131.0

Total

32,02934,958109.1

Individual Life Insurance

Of which, medical protection,
7,715
7,970
103.3
living benefit protection, etc.
Notes: 1. Annualized premiums refer to an amount that is calculated by multiplying individual premium amounts by a coefficient that differs depending on the premium payment methods, thereby
converting the figure to a per-year premium. (For lump-sum payment policies, premiums are divided by the number of coverage years.)
2. “Medical protection and living benefit protection, etc.” indicates the portion of annualized premiums for medical protection benefits (hospitalization benefits, surgical procedure benefits, etc.)
and products with living benefit protection (benefits for specific illness, nursing care benefits, etc.).

2

(3) Major P/L Items
Category(Millions of yen, %)For the six months ended
September 30, 2010

For the six months ended
September 30, 2009

% YoY
ChangeIncome from insurance premiums

339,359

371,040

109.3%

Investment income

91,58871,154

77.7%

Insurance claims and other payments

134,418

132,052

98.2%

Investment expenses

10,72627,160253.2%(4) Total assets(Millions of yen, %)Category

Total assets

As of September 30, 2010

% Change fromMarch 31, 2010

4,487,870

104.7%

3

As of March 31, 2010
4,286,540

2. Investment of General Account Assets during the Six Months Ended September 30, 2010(1) Investment Environment
During the six months ended September 30, 2010, the Japanese economy entered a gradual recovery phase. Real GDP (2ndpreliminary figures 1 ) grew at a rate of 0.4% (annualized rate of 1.5%) during the April–June quarter, with contributions fromgrowth in private-sector capital expenditure and in exports of goods and services. 2 However, nominal GDP, a better indicatorof conditions in the real economy, was negative 0.6% (annualized rate of minus 2.5%) in the July–September quarter. This
figure marked the first negative growth since the July–September quarter of the previous fiscal year, resulting from a decline
in the rate of growth in domestic demand. Real GDP during the July–September quarter is estimated to have grown at a
positive rate due to temporary factors, such as a surge in consumer spending on automobiles, stemming from a rush inpurchases of hybrid cars and other eco-friendly cars prior to the end of the government subsidy scheme.
The Japanese bond market performed steadily. Although moderate recovery continues, Japanese economic recovery is
expected to decelerate, a situation that prompted a gradual falloff in expectations of a rise in Japanese interest rates.
Additionally, such factors as financial problems in Europe, yen appreciation and weak stock markets led to the lowering ofinterest rates. Yields on 10-year Japanese government bonds (JGBs) fell steadily, dropping to 0.940% as of September 30,
2010, compared with 1.400% on March 31, 2010. This marked the first time in seven years—since August 2003—that yields
on 10-year JGBs had fallen below 1.000%.
The Nikkei Stock Average closed at ¥9,369.35 on September 30, 2010, down from ¥11,089.94 on March 31, 2010.
Although company earnings continued to recover, ongoing yen strength and apprehension over a stalled economy werefactors weighing on share prices; compared to European and American markets, the Japanese stock market was conspicuous
in its weakness. In terms of supply and demand, foreign investors, who were major buyers in the previous fiscal year,
offloaded Japanese shares to the tune of ¥488.8 billion in the first half of this fiscal year, which appears to be curbing
share-price appreciation.
On foreign exchange markets, the yen continued to appreciate against the U.S. dollar, rising from ¥93.47 on March 31,
2010, to ¥83.58 on September 30, 2010. Behind this significant appreciation of the yen regardless of the gradual recovery inthe domestic economy, we point to the interest rate differential between Japan and the United States narrowing due to thelower yields of U.S. government bonds. Long-term U.S. interest rates fell from 3.8257% on March 31, 2010, to 2.5098% on
September 30, 2010, reflecting heightened concerns over the deflationary impact of balance-sheet adjustments.
Consequently, the long-term interest rate gap between Japan and the United States rapidly narrowed to around 1.5% on
September 30, 2010, compared with around 2.4% on March 31, 2010, which is considered a factor behind accelerated
purchases of the yen versus the dollar. Additionally, financial woes in Europe, particularly Greece, helped to trigger yen
appreciation. Under the circumstances, among major currencies buying yen was seen as a safe move.
(2) Investment Policy
Our basic investment policy on general account assets is to create an investment portfolio that generates stable profits overthe medium to long term while considering the soundness of invested assets and the debt characteristics. The Company
secures stable interest income by investing primarily in Japanese government and corporate bonds. From the perspective of
ALM, we strive to increase the allocation of ultralong-term bonds. Furthermore, we will continue investing in equity assets,
including Japanese stocks, by controlling the allocation and ensuring a balance between profitability and market risks.
(3) Results of Investment
As of September 30, 2010, general account assets totaled ¥4,120.6 billion, up 5.3%, or ¥207.6 billion, from March 31, 2010.
Within the general account assets, domestic bond investment totaled ¥3,337.0 billion (accounting for 81.0% of total generalaccount assets), domestic stocks ¥63.2 billion (1.5%), foreign bonds ¥42.1 billion (1.0%), monetary trusts ¥287.6 billion(7.0%), policyholder loans ¥131.9 billion (3.2%), real estate ¥79.1 billion (1.9%), and cash and deposits and call loans ¥54.9
billion (1.3%).
1. Announced on September 11, 2010
2. The estimated growth rate of real GDP in the 2nd quarter of 2010 was 2.11%, announced by the Economic Planning Association (ESP Forecasts) on
October 12, 2010.

4

3. Status of Investment Assets (General Account Assets)(1) Portfolio of General Account Assets(Millions of yen, %)Category
Cash and deposits, call loans
Securities repurchased under resale agreements
Pledged money for bond borrowing transaction
Monetary claims purchased
Securities under proprietary accounts
Monetary trusts
Securities
Domestic bonds
Domestic stocks
Foreign securities
Foreign bonds
Foreign stocks and other securities
Other securities
Loans
Real estate
Deferred tax assets
Other assets
Reserve for possible loan losses
Total
Of which, foreign-currency-denominated assets

As of September 30, 2010
Amount%54,930
1.3
－
－
－
－
－
－
－
－
287,6467.0
3,482,444
84.5
3,337,048
81.0
63,274
1.5
68,5501.7
42,1441.0
26,406
0.6
13,571
0.3
131,900
3.2
79,193
1.9
24,7100.6
60,002
1.5
(225)
(0.0)
4,120,602
100.0
22,594
0.5

As of March 31, 2010
Amount%116,442－－－－
288,772
3,188,812
3,032,933
72,52575,28549,91525,3708,067
127,599
79,91527,686
83,918(212)
3,912,935
21,724

3.0
－
－
－
－
7.4
81.5
77.5
1.9
1.9
1.3
0.6
0.2
3.3
2.0
0.7
2.1
(0.0)
100.0
0.6

Note: Real estate is the total of land, buildings and construction in progress.

(2) Changes in General Account Assets by Categories(Millions of yen)
Category

For the six months ended
September 30, 2009
42,276－－－－(73,979)
215,930
221,959
5,616(10,656)(9,167)(1,488)
(988)
3,336
(563)
(14,789)
2,199
0
174,410(11,416)

Cash and deposits, call loans
Securities repurchased under resale agreements
Pledged money for bond borrowing transaction
Monetary claims purchased
Securities under proprietary accounts
Monetary trusts
Securities
Domestic bonds
Domestic stocks
Foreign securities
Foreign bonds
Foreign stocks and other securities
Other securities
Loans
Real estate
Deferred tax assets
Other assets
Reserve for possible loan losses
Total
Of which, foreign-currency-denominated assets
Note: Real estate is the total of land, buildings and construction in progress.

5

For the six months ended
September 30, 2010
(61,511)－－－－(1,126)
293,632
304,114(9,251)(6,734)(7,771)
1,036
5,503
4,301
(721)
(2,975)(23,916)(13)
207,667870

(3) Investment Income
Category(Millions of yen)
For the six months ended
September 30, 2010

For the six months ended
September 30, 2009

Interest income and dividends

32,909Interest income from deposits

42,33800Interest income and dividends from securities

24,98834,048Interest income from loans

2,473

2,587

Income from real estate for rent

5,415

5,665

31

36

Other
Gains on securities under proprietary accounts
Income from monetary trusts, net

－

－

9,599

4,346

－

－

9,762

24,468

Gains on sale of domestic bonds

2,172

23,726

Gains on sale of domestic stocks

7,336

680

Gains on sale of foreign securities

252

62

Other

－

－

Income from trading securities, net
Gains on sale of securities

1,096

－

Gains on derivatives, net－－

Foreign exchange gains, net－－

Other investment income

37

053,405

71,154

Gains on redemption of securities

Total(4) Investment Expenses
Category(Millions of yen)
For the six months ended
September 30, 2010

For the six months ended
September 30, 2009

Interest expense

1527

Losses on securities under proprietary accounts－－

Losses from monetary trusts, net－－

Losses on trading securities, net

－

－

5,328

703

Losses on sale of securities
Losses on sale of domestic bonds－－

Losses on sale of domestic stocks

4,510

626

Losses on sale of foreign securities

818

77

Other

－

－

－

348

Devaluation losses on securities
Devaluation losses on domestic bonds－－

Devaluation losses on domestic stocks－

348

Devaluation losses on foreign securities

－

－

Other

－

－

315

23

Losses on redemption of securities
Losses on derivatives, net－－

Foreign exchange losses

169

163

Provision for reserve for possible loan losses

017

Write-off loans－－

Depreciation of real estate for rent and others

1,377

1,276

Other investment expenses

3,519

3,179

10,726

5,739

Total

6

(5) Valuation Gains (Losses) on Trading-purpose Securities(Millions of yen)
As of March 31, 2010

As of September 30, 2010
Net
valuation
gains (losses)
recorded inincomeCategory
Balance sheet amount-

Trading-purpose securities

Net valuation
gains (losses)
recorded inincomeBalance sheet amount

-

-

5,711

Note: The chart above includes trading-purpose securities in "monetary trusts" etc.

(6) Fair Value Information on Securities
a. Fair value information on securities with market value (except trading-purpose securities)(Millions of yen)
As of September 30, 2010

As of March 31, 2010

Net unrealized gains (losses)
Category

Carrying
amountFair value

Net unrealized gains (losses)

Unrealized Unrealized
gains
lossesCarrying
amountFair value

Unrealized
gains

Unrealized
losses2,818,624

3,040,276

221,651

221,941289

2,275,629

2,255,176(20,453)

10,572

31,026

Policy reserve matching bonds

－

－

－

－

－

－

－

－

－

－

Stocks of subsidiaries andaffiliated companies

－

－

－

－

－

－

－

－

－

－

Held-to-maturity securities

858,892

913,905

55,01359,204

4,191

1,126,543

1,166,944

40,401

42,252

1,850

Domestic bonds

794,884

848,583

53,69853,6991

1,061,593

1,090,012

28,41829,677

1,259

Domestic stocks

51,82752,969

1,142

4,851

3,708

51,72362,183

10,45910,956497

Foreign securities

－

－

－

－

－

8,084

8,010

(74)

19

93

Bonds

－

－

－

－

－

8,084

8,010

(74)

19

93

Stocks, etc.

－

－

－

－

－

－

－

－

－

－

12,18012,352

172

654

481

5,140

6,738

1,597

1,598

0

Monetary claims purchased

－

－

－

－

－

－

－

－

－

－

Certificates of deposit

－

－

－

－

－

－

－

－

－

－

Others

－

－

－

－

－

－

－

－

－

－

3,677,516

3,954,181

276,665

281,1464,480

3,402,172

3,422,120

19,947

52,82432,877

Domestic bonds

3,571,365

3,840,632

269,266

269,557290

3,295,318

3,295,356

37

32,32332,285

Domestic stocks

51,82752,969

1,142

4,851

3,708

51,72362,183

10,45910,956497

Foreign securities

42,144

48,227

6,083

6,083

－

49,98957,843

7,853

7,947

93

42,144

48,227

6,083

6,083

－

49,98957,843

7,853

7,947

93
－

Available-for-sale securities

Other securities

Total

Bonds

－

－

－

－

－

－

－

－

－

12,18012,352

172

654

481

5,140

6,738

1,597

1,598

0

Monetary claims purchased

－

－

－

－

－

－

－

－

－

－

Certificates of deposit

－

－

－

－

－

－

－

－

－

－

Others

－

－

－

－

－

－

－

－

－

－

Stocks, etc.
Other securities

Notes 1. The above table includes assets such as certificates of deposit which are permitted to be treated as equivalent to securities defined in the
Financial Instruments and Exchange Law of Japan.
2. Carrying amount and net unrealized gains (losses) on monetary trusts, including items other than trading-purpose securities, amounted to¥268,409 million and ¥19,605 million.
3. Carrying amount represents the amount after deductions for depreciable costs and impairment losses, before mark-to-market.

7

b. Carrying amounts of securities without market value(Millions of yen)
Category

As of March 31, 2010

As of September 30, 2010

Held-to-maturity securities－－

Unlisted foreign bonds－－

Others－－－－Stocks of subsidiaries and affiliated companies

15,847

15,847Available-for-sale securities

25,974

24,833

Policy reserve matching bonds

Unlisted domestic stocks (except OTC stocks)

442

Unlisted foreign stocks (except OTC stocks)

962

885

Unlisted foreign bonds
OthersTotal－－

25,00823,95541,822

40,731

C. Fair Value Information consisting of that stated in the previous table-a and foreign exchange and other gains (losses) for table-b(Millions of yen)
As of September 30, 2010

As of March 31, 2010

Net unrealized gains (losses)
Category

Fair value289

2,275,629

2,255,176(20,453)

10,572

－

－

－

－

－

－

－

－

15,847

15,847－－－

Fair value

2,818,624

3,040,276

221,651

221,941

－

－

－

－

Stocks of subsidiaries and affiliated companies

15,847

15,847－Available-for-sale securities

Held-to-maturity securities
Policy reserve matching bonds

Net unrealized gains (losses)
Carrying
amountCarrying
amountUnrealized Unrealized
lossesgains

Unrealized Unrealized
gains
losses31,026884,867

935,987

51,12059,948

8,828

1,151,426

1,188,138

36,711

42,946

6,234

Domestic bonds

794,884

848,583

53,69853,6991

1,061,593

1,090,012

28,41829,677

1,259

Domestic stocks

51,831

52,974

1,142

4,851

3,708

51,76662,225

10,45910,956497

Foreign securities

962

817

(144)

－

144

8,970

8,809

(160)

19

180

－

－

－

－

－

8,084

8,010

(74)

19

93

Stocks, etc.

962

817

(144)

－

144

885

798

(86)

－

86

Other securities

Bonds

37,18833,612(3,575)

1,397

4,973

29,09527,090(2,005)

2,292

4,298

Monetary claims purchased

－

－

－

－

－

－

－

－

－

－

Certificates of deposit

－

－

－

－

－

－

－

－

－

－

Others

－

－

－

－

－

－

－

－

－

－

3,719,339

3,992,111

272,772

281,889

9,117

3,442,904

3,459,162

16,25853,51937,261

Domestic bonds

3,571,365

3,840,632

269,266

269,557290

3,295,318

3,295,356

37

32,32332,285

Domestic stocks

62,131

63,274

1,142

4,851

3,708

62,066

72,525

10,45910,956497

Foreign securities

48,65454,592

5,938

6,083

144

56,42264,189

7,766

7,947

180

Bonds

42,144

48,227

6,083

6,083

－

49,98957,843

7,853

7,947

93

Stocks, etc.

6,509

6,365

(144)

－

144

6,433

6,346

(86)

－

86

Other securities

Total

37,18833,612(3,575)

1,397

4,973

29,09527,090(2,005)

2,292

4,298

Monetary claims purchased

－

－

－

－

－

－

－

－

－

－

Certificates of deposit

－

－

－

－

－

－

－

－

－

－

Others

－

－

－

－

－

－

－

－

－

－

8

(7) Fair Value Information on Monetary Trusts (General Account)(Millions of yen)

As of September 30, 2010
Category

Monetary trusts

Balance
Fair value
sheet amount
287,646

287,646

As of March 31, 2010

Net unrealized gains (losses)
Unrealized Unrealized
gains
losses－－－Balance sheet
Fair value
amount288,772

288,772

Net unrealized gains (losses)
Unrealized Unrealized
gains
losses－－－Note: The table above includes ¥50 million of jointly invested monetary trusts.

(Millions of yen)

Monetary Trusts for Investment
As of September 30, 2010
Category

As of March 31, 2010

Net valuation
gains (losses)

Balance sheet amount－－

Monetary trusts for investment

Net valuation
gains (losses)

Balance sheet amount
681

5,711

Note: Monetary trusts includes cash and call loans held in monetary trusts.

(Millions of yen)

Monetary trusts for held-to-maturity and policy reserve matching and other monetary trusts
As of September 30, 2010

As of March 31, 2010

Net unrealized gains (losses)
Category

Carrying
amountFair value

Net unrealized gains (losses)

Unrealized Unrealized
gains
lossesCarrying
amountFair value

Unrealized Unrealized
gains
lossesMonetary trusts for held-to-maturity

－

－

－

－

－

－

－

－

－

－

Monetary trusts for policy reserve matching

－

－

－

－

－

－

－

－

－

－

267,989

287,595

19,605

19,605－285,525

288,039

2,514

2,968

453

Other monetary trusts

Note: Monetary trusts includes cash and call loans held in monetary trusts.

94. Balance Sheets (Non-consolidated)(Millions of yen)
As of September 30, 2010

As of March 31, 2010

AmountAmountAssets:Cash and deposits
Call loans
Monetary trusts
Securities(Japanese government bonds)(Japanese municipal bonds)(Japanese corporate bonds)(Japanese stocks)(Foreign securities)
Loans
Policy loans
Tangible fixed assets
Intangible fixed assets
Due from reinsurers
Other assets
Deferred tax assets
Reserve for possible loan losses
Total Assets

30,12948,100287,6463,824,756
3,368,862
12,36478,78090,333
177,184
131,900
131,900
80,105
14,472739
45,53524,710(225)
4,487,870

Liabilities:
Policy reserves and others
Reserve for outstanding claims
Policy reserves
Reserve for policyholders' dividends
Due to agencies
Due to reinsurers
Other liabilities
Accrued income tax
Lease obligations
Asset retirement obligation
OthersReserve for employees' retirement benefits
Reserve for directors' retirement benefits
Reserve for price fluctuations
Reserve for price fluctuations
Deferred tax liabilities on land revaluation
Total Liabilities
Net Assets:
Common stock
Capital surplus
Capital reserve
Retained earnings
Earned reserve
Other retained earnings
Unappropriated retained earnings for the period
Total shareholders' equity
Net unrealized gains on other securities, net of taxes
Land revaluation, net of taxes
Total valuation and translation adjustments
Total Net Assets
Total Liabilities and Net Assets

10

45,70791,800288,772
3,539,114
3,023,972
28,43399,351103,098
186,043
127,599
127,599
80,923
13,862
120
71,16527,686(212)
4,286,540

4,191,582
22,8294,163,560
5,192
1,334
561
41,736
19,313300
661
21,46016,311130
13,06813,068706
4,265,431

4,012,112
21,424
3,985,610
5,076
1,445
716
55,501
16,943325

70,0005,865
5,865
123,448
11,278112,169
112,169
199,31324,601(1,475)23,125
222,439
4,487,870

70,0005,865
5,865
101,464
9,878
91,58591,585
177,329
15,458(1,475)
13,982
191,3124,286,540－
38,232
14,989
118
9,637
9,637
706
4,095,228

5. Statements of Income (Non-consolidated)(Millions of yen)
For the six months ended
September 30, 2009

For the six months ended
September 30, 2010

AmountAmountOrdinary Revenues

432,500

444,383

Income from insurance premiums

339,359

371,040

338,479

370,019

91,58871,154(Interest income and dividends)

32,90942,338(Income from monetary trusts, net)

9,599

4,346

(Gains on sale of securities)

9,762

24,468(Gains on separate accounts, net)

38,183－(Insurance premiums)
Investment income

Other ordinary income

1,552

2,188

Ordinary Expenses

396,060

394,344

Insurance claims and other payments

134,418

132,052(Insurance claims)

32,72735,576(Annuity payments)

3,205

3,602

(Insurance benefits)

15,833

15,953(Surrender payments)

80,72375,039(Other payments)
Provision for policy reserves and others
Provision for reserve for outstanding claims
Provision for policy reserves
Interest on policyholders' dividend reserve
Investment expenses(Interest expenses)(Losses on sale of securities)

852

824

197,354

179,363

2,432

1,404

194,920

177,9492

8

10,72627,160

15

27

5,328

703

(Devaluation losses on securities)－

348(Losses on separate accounts, net)－

21,42047,53849,070Operating expenses
Other ordinary expenses

6,022

6,698

Ordinary Profit

36,44050,039Extraordinary Losses

2,819

3,736

Losses on disposal of fixed assets

89

15

Impairment losses

4

0

2,725

3,430

2,725

3,430

Provision for reserve for price fluctuations
Provision for reserve for price fluctuations

－

290

224

345

Income before income taxes

33,39645,956

Income taxes -current

5,932

19,501

Income taxes -deferred

5,730(2,529)Total Income Taxes

11,662

16,972Net Income

21,73328,983

Other extraordinary losses
Provision for reserve for policyholders' dividends

11

6. Reconciliation to Core Profit and Non-consolidated Ordinary Profit(Millions of yen)
For the six months ended
September 30, 2009
Core profit

A

For the six months ended
September 30, 2010

28,597

26,84615,182

26,090

Income from monetary trusts, net

5,420

1,622

Income from trading securities, net－－

Gains on sale of securities

9,762

24,468

Gains on derivatives, net－－

Foreign exchange gains, net－－

Capital gains

－

－

5,879

1,215

Losses on monetary trusts, net－－

Losses on trading securities, net

－

－

5,328

703

Devaluation losses on securities－

348

Losses on derivatives, net－－

Foreign exchange losses, net

169

163

Other capital losses

381－

Other capital gains
Capital losses

Losses on sale of securities

Net capital gains

B

9,303

24,875

Core profit plus net capital gains

A+B

37,90051,722－－

Gains from reinsurance－－

Reversal of contingency reserve－－

Other one-time gains

－

－

1,460

1,683

Other
Other one-time losses

－

－

1,460

1,665

Losses from reinsurance
Provision for contingency reserve
Provision for specific reserve for possible loan losses

017Provision for reserve for loan losses from borrowers in specific foreign countries－－

Write-off of loans

－

－

－

－

C

(1,460)(1,683)

A+B+C

36,44050,039Other
Net other one-time gains (losses)
Ordinary profit

Notes:
1.Core profit for the six months ended September 30, 2009 (A) includes income gains of ¥4,179 million in income from monetary trusts;
other capital losses include impairment losses of ¥381 million from investment partnership.
2.Core profit for the six months ended September 30, 2010 (A) includes income gains of ¥2,724 million in income from monetary trusts.

12

7. Loans by Borrower Category(Millions of yen, %)Category

As of September 30, 2010

As of March 31, 2010
－
－
－
－
[－]
134,215
134,215

Bankrupt and quasi-bankrupt loans
Doubtful loans
Sub-standard loans
Sub-total[% to total]
Normal loans
Total

－
－
－
－
[－]
129,867
129,867

Notes:
1. Bankrupt and quasi-bankrupt loans are loans to borrowers who are subject to bankruptcy, corporate reorganization or rehabilitation or other similar proceedings and otherborrowers in serious financial difficulties.
2. Doubtful loans are loans to obligors (other than bankrupt and quasi-bankrupt obligors) with deteriorated financial condition and results of operations from which it isunlikely that the principal and interest on the loans will be recovered.
3. Sub-standard loans are loans on which principal and/or interests are past due for three months or more and loans with a concessionary interest rate, as well as loans withrenegotiated conditions in favor of the borrower, including renegotiated schedule and/or waivers, in each case, other than the loans described in notes 1. and 2. above.
4. Normal loans are all other loans.

8. Risk-Monitored Loans
Not applicable13

9. Solvency Margin Ratio(Millions of yen)
Category
Total solvency margin

As of September 30, 2010

(A)

As of March 31, 2010

699,554630,237

Common stock, etc.

197,900

170,329

Reserve for price fluctuations

13,068

9,637

Contingency reserve

50,162

48,49700

Net unrealized gains on other securities multiplied by 90% if gains or 100% if losses

46,00833,040Net unrealized gains on real estate multiplied by 85% if gains or 100% if losses

1,633

1,633

Excess amount of policy reserves based on Zillmer method

322,892

316,510

Unallocated portion of reserve for policyholders' dividends

3,195

2,346

Future profits

1,022

1,022

Deferred tax assets

63,672

47,219Subordinated debt－－

Deductible items－－

46,74847,792

19,60519,199

7,213

7,094

Reserve for possible loan losses

2
2
R
(R
R
R
R
Total risk (R
4
1
8) 
2
3
7) 

Insurance risk

(Ｂ)

R1

Third-sector insurance risk

R8

Assumed interest rate risk

R2

11,492

11,395

Asset management risk

R316,617

18,932Business management risk

R4

1,270

1,292

Minimum guarantee risk

R7

8,618

8,023

2992.8%2637.3%

Solvency margin ratio
(A)
x 100
(1/2) x (B)Notes: 1. The foregoing figures were calculated based on provisions in Articles 86 and 87 of the Insurance Business Law Enforcement Regulations and the Ministryof Finance Announcement No. 50 (1996). (Excess amount of policy reserves based on Zillmer method were calculated based on Article 1-3-1 of the
Ministry of Finance Announcement No. 50.)
2. Minimum guarantee risk was calculated based on the standardized approach.

1410. Status of Separate Account Assets(1) Balance of Separate Account Assets(Millions of yen)
Category

As of September 30, 2010

Individual variable life insurance and individual variable annuities

As of March 31, 2010

367,267

373,604－－

367,267

373,604

Group annuities
Total separate accountNote: Assets relating to individual variable life insurance and individual variable annuities are jointly invested at Sony Life.

(2) Policy Amount in Force (Separate Account)(Number: Thousand, Amount: Millions of yen)

Individual variable life insurance
Category

As of September 30, 2010
NumberAs of March 31, 2010

AmountNumberAmountVariable life insurance (limited term type)524

6,740,275

511

6,622,140

Variable life insurance (whole life type)43

143,18742

141,951

Variable life insurance (term type)1

55,946

1

58,800569

6,939,409

556

6,822,892

Total
Note: Amounts include the rider portion of variable life insurance.

Individual variable annuities

Category(Number: Thousand, Amount: Millions of yen)
As of September 30, 2010
NumberAmountIndividual variable annuities

28

Note: The figure indicated in the amount column is for annuity resources.

15

155,396

As of March 31, 2010
NumberAmount28

154,718

11. Consolidated Summary(1) Key Performance Results(Millions of yen)
Category

For the six months ended
September 30, 2010

For the six months ended
September 30, 2009

Ordinary Revenues

432,643444,530

Ordinary Profit

36,39649,594Net Income

21,691

28,538Category

As of September 30, 2010

Total assets

As of March 31, 2010
4,486,836

4,286,045(2) Scope of Consolidation and Companies Accounted for under Equity Method
Number of consolidated subsidiaries

1

Number of non-consolidated subsidiaries accounted for under equity method0

Number of affiliated companies accounted for under equity method216

(3) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2010
AmountAs of September 30, 2010
AmountAssets:Cash and deposits

31,125

Call loans

48,10091,800

Monetary trusts

287,646

288,772

Securities

46,112

3,822,612

3,538,090

Loans

131,919

127,615

Tangible fixed assets

80,11980,937

Intangible fixed assets

14,473

13,863Due from reinsurers

739

120

Other assets

45,596

71,239Deferred tax assets

24,729(225)

27,705(212)

4,486,836

4,286,045

4,191,817

4,012,335

Reserve for possible loan losses
Total Assets
Liabilities:
Policy reserves and others
Reserve for outstanding claims
Policy reserves
Reserve for policyholders' dividends

22,831

21,425

4,163,793

3,985,833

5,192

5,076

Due to agencies

1,334

1,445

Due to reinsurers

561

716

Other liabilities

41,76955,539Reserve for employees' retirement benefits

16,314

14,991

Reserve for directors' retirement benefits

130

118

13,068

9,637

13,068
0

9,637

706

706

4,265,702

4,095,492

Common stock

70,00070,000Capital surplus

5,865

5,865

Retained earnings

122,364

100,825

Total shareholder's equity

198,229

176,690

Net unrealized gains on other securities, net of taxes

24,653(1,475)

15,501(1,475)Reserve for price fluctuations
Reserve for price fluctuations
Deferred tax liabilities
Deferred tax liabilities on land revaluation
Total Liabilities

0

Net Assets:

Land revaluation, net of taxes
Foreign currency translation adjustments

(273)

(163)

Total valuation and translation adjustments

22,904

13,862

Total Net Assets
Total Liabilities and Net Assets

17

221,133

190,553

4,486,836

4,286,045

(4) Consolidated Statements of Income(Millions of yen)
For the six months ended
September 30, 2009

For the six months ended
September 30, 2010

AmountAmountOrdinary Revenues

432,643444,530

Income from insurance premiums

339,389

371,073

Investment income

91,70133,013

71,26842,427(Interest income and dividends)(Income from monetary trusts, net)

9,599

4,346

(Gains on sale of securities)

9,771

24,492(Gains on separate accounts, net)

38,183－

Other ordinary income

1,552

2,188

Ordinary Expenses

396,246394,936

Insurance claims and other payments

134,424

132,056(Annuity payments)

32,731
3,205

35,577
3,602(Insurance benefits)

15,833

15,953(Surrender payments)

80,72575,041

197,370

179,383(Insurance claims)

Provision for policy reserves and others
Provision for reserves for outstanding claims
Provision for policy reserves
Interest on policyholders' dividend reserve
Investment expenses(Interest expenses)(Losses on sale of securities)

2,430

1,406

194,938

177,9692

8

10,705

27,160

15
5,334

27
703

(Devaluation losses on securities)－

348(Losses on separate accounts, net)－

21,420Operating expenses

47,60849,152Other ordinary expenses

6,138

7,183

Ordinary Profit

36,39649,594－－00Extraordinary Gains
Gains on sale of fixed assets
Extraordinary Losses

2,819

3,736

Losses on sale or disposal of fixed assets

89

15

Impairment losses

4

0

2,725

3,430

2,725

3,430

－
224

290
345

Income before income taxes

33,35245,511

Income taxes -current

5,932

19,501

Income taxes -deferred

5,729
11,661

16,972

Provision for reserve for price fluctuations
Provision for reserve for price fluctuations
Other extraordinary losses
Provision for reserve for policyholders' dividends

Total Income Taxes
Income before Minority Interests
Net Income

18(2,529)－28,53821,691

28,538

12. (Reference 1) Results for the Three Months Ended September 30, 2010
(1) New Policy Amount(Number: Thousand, Amount: 100 millions of yen, %)For the three months ended
September 30, 2009
Category

NumberAmount

For the three months ended
September 30, 2010

NumberIncrease fromconversion

New policies% YoY
ChangeAmount% YoY
ChangeNew policies

Increase fromconversion

131

8,791

8,791

－

138

105.7

9,964

113.3

9,964

－

1

70

70

－

1

95.6

66

94.5

66

－

Sub total

132

8,861

8,861

－

140

105.6

10,030113.2

10,030－Group life insurance

－

8

8

－

－

87

1,033.8

87

Group annuities

－

－

－

－

－

－

－

Individual life insurance
Individual annuities－(2) Annualized Premiums for New Policies(Millions of yen, %)Category
Individual life insurance

For the three months ended
September 30, 2009

For the three months ended
September 30, 2010

% YoY
Change15,703

16,487

105.0

318

360

113.2

Total

16,022

16,848105.2

Of which, medical protection,living benefit protection, etc

3,749

3,805

101.5

Individual annuities

Notes:

1. Annualized premiums refer to an amount that is calculated by multiplying individual premium amounts by a coefficient that differs depending on the premium payment methods, thereby
converting the figure to a per-year premium. (For lump-sum payment policies, premiums are divided by the number of coverage years.)
2. “Medical protection and living benefit protection, etc.” indicates the portion of annualized premiums for medical protection benefits (hospitalization benefits, surgical procedure benefits, etc.)
and products with living benefit protection (benefits for specific illness, nursing care benefits, etc.).

19

(3) Statements of Income(Millions of yen)
For the three months ended
September 30, 2009

For the three months ended
September 30, 2010

AmountAmountOrdinary Revenues

209,296

238,944

Income from insurance premiums

173,413

188,355

172,905

187,601(Insurance premiums)
Investment income

35,06249,491(Interest income and dividends)

17,193

21,779(Income from monetary trusts, net)

5,411

2,003

(Gains on sale of securities)

3,141

17,045(Gains on separate accounts, net)

9,315

8,662

820

1,097

Ordinary Expenses

193,600

207,739

Insurance claims and other payments

Other ordinary income

67,55364,253(Insurance claims)

17,537

17,645(Annuity payments)

1,650

1,835

(Insurance benefits)

7,883

7,695

(Surrender payments)

39,50536,376(Other payments)

411

143

94,129112,079

Provision for reserves for outstanding claims

1,675

631

Provision for policy reserves

92,452

111,443

Provision for policy reserves and others

Interest on policyholders' dividend reserve

1

4

Investment expenses

4,480

2,866

(Interest expenses)

6

11(Losses on sale of securities)(Devaluation losses on securities)
Operating expenses

1,704

223

－

348

24,42025,199Other ordinary expenses

3,016

3,340

Ordinary Profit

15,69531,2041－

1－

Extraordinary Gains
Reversal of reserve for possible loan losses
Extraordinary Losses

1,360

1,834

Losses on disposal of fixed assets

14

13

Impairment losses

3

0

1,342

1,820

1,342

1,820

Provision for reserve for price fluctuations
Provision for reserve for price fluctuations
Provision (Reversal) for reserve for policyholders' dividends

(55)

46

14,391

29,323

Income taxes -Current

6,358

12,602

Income taxes -Deferred(1,880)(2,080)Total Income Taxes

4,478

10,522Net Income

9,913

18,801

Income before income taxes

20(4) Reconciliation to Core Profit and Non-consolidated Ordinary Profit(Millions of yen)
For the three months ended
September 30, 2009
Core profit

Ａ

Capital gains
Income from monetary trusts, net

For the three months ended
September 30, 2010

12,027

15,055

6,498

17,701

3,357

656

－

－

Gains on sale of securities

3,141

17,045

Gains on derivatives, net－－

Foreign exchange gains, net－－

Other capital gains－－

Income from trading securities, net

Capital losses

2,119

640

Losses on monetary trusts, net－－

Losses on trading securities, net－－

Losses on sale of securities

1,704

223

Devaluation losses on securities－

348

Losses on derivatives, net－－

Foreign exchange losses, net

33

68

Other capital losses

381

－

Ｂ

4,378

17,061

Ａ＋Ｂ

16,40632,116－－

Gains from reinsurance－－

Reversal of contingency reserve

－

－

Other

－

－

711

912

Net capital gains
Core profit plus net capital gains
Other one-time gains

Other one-time losses
Losses from reinsurance－－

Provision for contingency reserve

711

899

Provision for specific reserve for possible loan losses－

12

Provision for reserve for loan losses from borrowers in specific foreign countries－－

Write-off of loans

－

－

－

－

Ｃ

(711)

(912)

Ａ＋Ｂ＋Ｃ

15,69531,204Other
Net other one-time gains (losses)
Ordinary profit

Notes:
1. Core profit for the three months ended September 30, 2009 (A) includes income gains of ¥2,054 million in income from monetary trusts;
other capital losses include impairment losses of ¥381 million from investmnet partnership.
2. Core profit for the three months ended September 30, 2010 (A) includes income gains of ¥1,347 million in income from monetary trusts.

21

(5) Consolidated Statements of Income

For the three months ended
September 30, 2009

For the three months ended
September 30, 2010

AmountAmountOrdinary Revenues

209,370

239,022

Income from insurance premiums

173,429

188,373

Investment income

35,12049,546(Interest income and dividends)

17,244

21,817(Income from monetary trusts, net)

5,411

2,003

(Gains on sale of securities)

3,148

17,061(Gains on separate accounts, net)

9,315

8,662

820

1,102

Ordinary Expenses

193,730

207,977

Insurance claims and other payments

67,55564,254(Insurance claims)

17,537

17,645(Annuity payments)

1,650

1,835

(Insurance benefits)

7,883

7,695

Other ordinary income(Surrender payments)
Provision for policy reserves and others

39,50636,377

94,138112,091

Provision for reserve for outstanding claims

1,675

633

Provision for policy reserves

92,461

111,454

1

4

Investment expenses

Interest on policyholders' dividend reserve

4,486

2,827

(Interest expenses)

6

11(Losses on sale of securities)

1,707

223

－

348

Operating expenses

24,46025,244

Other ordinary expenses

3,090

3,558

Ordinary Profit

15,64031,045(Devaluation losses on securities)

Extraordinary Gains
Gains on sale of fixed assets

1

0

－

0

1

－

1,360

1,834

Losses on disposal of fixed assets

14

13

Impairment losses

3

0

1,342

1,820

Provision for reserve for price fluctuations

1,342

1,820

Provision (reversal) for reserve for policyholders' dividends

(55)

46

Income before income taxes

14,33629,164

Income taxes -Current

6,358

12,602

Income taxes -Deferred(1,881)(2,078)

Total Income Taxes

4,477

10,524－

18,6399,858

18,639

Reversal of reserve for possible loan losses
Extraordinary Losses

Provision for reserve for price fluctuations

Income before Minority Interests
Net Income22

(Reference 2)
Holdings of Securitized Papers and Other Sub-prime Related Investments
Sony Life’s holdings of securitized papers and other sub-prime related investments as of September 30, 2010, are as follows.
Sony Life holds no sub-prime related investments.
(1) Special-purpose entities (SPEs)
Unrealized
gains (losses)
－
－
－
－
－
－
－

Fair value
－
－
－
－
－
－
－

Special purpose entities (SPEs)
ＡＢＣＰ
facilitated by Sony Life
ＳＩＶ
facilitated by Sony Life
Other
facilitated by Sony Life(100 millions of yen)
Gains (losses)
recorded in income
－
－
－
－
－
－
－

(2) Collateralized debt obligations (CDO)

Fair value
Collateralized debt obligations (CDO)
ABS
CDO
Seniorsub-prime (Alt-A exposure)
Mezzanine
sub-prime (Alt-A exposure)
Equitysub-prime (Alt-A exposure)
CLO

SeniorMezzanine
EquityCBO

SeniorMezzanine
EquityOther

SeniorMezzanine
Equity

23

－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

(100 millions of yen)
Gains (losses)
Unrealizedrecorded ingains (losses)
income
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

(3) Other sub-prime (Alt-A exposure)
Fair value
－
－
－
－
－
－

Other sub-prime (Alt-A exposure)Non-securitized loans
RMBS
Derivatives
Commitment line
Other

Unrealized
gains (losses)
－
－
－
－
－
－

(100 millions of yen)
Gains (losses)
recorded in income
－
－
－
－
－
－

Unrealized
gains (losses)
－
－
－
－
－
－

(100 millions of yen)
Gains (losses)
recorded in income
－
－
－
－
－
－

Unrealized
gains (losses)
－
－
－
－
－
－

(100 millions of yen)
Gains (losses)
recorded in income
－
－
－
－
－
－

(4) Commercial mortgage-backed securities (CMBS)
Fair value
As of March 31, 2010

Commercial mortgage-backed securities (CMBS)
Japan
USA
EU
UK
Other

－
－
－
－
－
－

－
－
－
－
－
－

(5) Leveraged financeFair value
As of March 31, 2010

Leveraged financeCommunications
Electronics
Entertainment
Services
Other

－
－
－
－
－
－

－
－
－
－
－
－

(6) Other notes
Sony Life holds principal protected 30 year notes with Nikkei 225 index linked coupon (fair market value of ¥48.2 billion andunrealized gains of 6.0 billion as of September 30, 2010). These amounts are included in “Net unrealized gains(losses) on other securities, (before taxes)” of Sony Life as of September 30, 2010.

24