November 14, 2012
Sony Financial Holdings Inc.

Summary Information on Sony Life’s Financial Results
for the Six Months Ended September 30, 2012
<Contents>
1. Key Performance Results(1) Policy Amount in Force and New Policy Amount(2) Annualized Premiums(3) Major P/L Items(4) Total assets

P.2
P.2
P.3
P.3

2. Status of Investment Assets (General Account)(1) Investment Environment(2) Investment Policy(3) Results of Investment

P.4
P.4
P.4

3. Status of Investment Assets (General Account)(1) Portfolio of General Account Assets(2) Changes in General Account Assets by Categories(3) Investment Income(4) Investment Expenses(5) Valuation Gains (Losses) on Trading-purpose Securities(6) Fair Value Information on Securities(7) Fair Value Information on Monetary Trusts (General Account)

P.5
P.5
P.6
P.6
P.7
P.7
P.9

4. Non-consolidated Balance Sheets

P.10

5. Non-consolidated Statements of Income

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(1) Balance of Separate Account Assets

P.15(2) Policy Amount in Force (Separate Account)

P.15

11. Consolidated Summary(1) Key Performance Indicators(2) Scope of Consolidation and Companies Accounted for under Equity Method(3) Consolidated Balance Sheets(4) Consolidated Statements of Income and Consolidated Statements ofComprehensive Income(5) Consolidated Solvency Margin Ratio(Reference) Holdings of Securitized Papers and Other Sub-prime Related Investments
1

P.16
P.16
P.17
P.18
P.20
P.21

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, 2011

As of March 31, 2012

As of September 30, 2012

Category
NumberIndividual life insurance

Amount5,435

Individual annuities

Number350,317

Amount

5,602

% YoY
changeNumber357,073

5,749% change fromMarch 31, 2012

105.8

102.6

Amount% YoYchange363,239% change fromMarch 31, 2012

103.7

101.7

63

3,394

71

3,697

74

117.7

104.2

3,828

112.8

103.5

5,498

353,711

5,673

360,770

5,823

105.9

102.6

367,068

103.8

101.7

Group life insurance-

12,346-

12,687---

13,110

106.2

103.3

Group annuities

-

584

-

578

-

-

-

574

98.3

99.4

Subtotal

Notes:
1. The policy amount in force 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 policy amount(Number: Thousand, Amount: 100 millions of yen, %)For the six months ended September 30, 2011

For the six months ended September 30, 2012

Category
NumberIndividual life insurance
Individual annuities

Amount% YoYchangeNumberIncrease fromconversion

New policies% YoYchangeAmountNew policies

280

20,335

20,335

-

270

96.6

19,942

98.1

19,942

-

3

181

181

-

4

112.7

197

108.3

197

-

-

-

283

20,517

20,517274

96.8

20,13998.2

20,139Group life insurance

-

20

20

-

－

25

122.8

25

Group annuities

-

-

-

-

－

－

－

－

Subtotal

Increase fromconversion

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(Millions of yen, %)As of
September 30, 2011

As ofMarch 31, 2012

As of
September 30, 2012

% YoY change% change fromMarch 31, 2012

Individual life insurance

605,293621,647

634,386

104.8

102.0

Individual annuities

12,71013,753

14,188

111.6

103.2

618,004

635,401

648,575

104.9

102.1

144,793

148,954

153,101

105.7

102.8

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

New policies(Millions of yen, %)Category
Individual life insurance
Individual annuities
Total
Of which, medical protection,living benefit protection, etc

For the six months ended
September 30, 2011

For the six months ended
September 30, 2012

% YoY change

31,39496.3

32,593
688

768

111.5

33,281

32,162

96.6

8,130

8,119

99.9

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, living benefit protection, etc” indicates the portion of annualized premiums for medical protection benefits (hospitalization benefits, surgical procedure benefits, etc.) andproducts 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, 2011

For the six months ended
September 30, 2012

% YoY
ChangeIncome from insurance premiums

395,732

428,846

108.4

Investment income

52,04756,005

107.6

Insurance claims and other payments

137,285

135,344

98.6

Investment expenses

29,38418,752

63.8(4) Total assets(Millions of yen, %)Category
Total assets

As of March 31, 2011

As of September 30, 2012

5,222,846

5,484,323

3% Change fromMarch 31, 2012
105.0

2. Status of Investment Assets (General Account)(1) Investment Environment
During the six months ended September 30, 2012, the Japanese economy experienced significant changes. Real GDP (2ndpreliminary figures1) grew at a rate of 0.2% (annualized rate of 0.7%) during the April–June quarter. Personal consumption andhousing investment supported this economic growth, against a backdrop of post-earthquake reconstruction demand and eco-car
subsidies. Growth in nominal GDP, meanwhile, was a negative 0.3% during this quarter. Real GDP growth for the July–September
quarter2 is expected to be weaker, however, owing to economic deceleration overseas, causing a decline in exports, and sluggish
domestic capital investment and personal consumption. Accordingly, there is a growing consensus that GDP growth will turnnegative for the first time since the April–June 2011 quarter.
The Japanese bond market performed steadily. From April to July, long-term bond yields in developed economies such as theUnited States and Germany dropped sharply due to the growing severity of the European debt crisis and concerns of a global
economic slowdown. Long-term yields in the Japanese bond market also moved downward. As an indicator of this trend, yields on
10-year Japanese government bonds (JGBs) fell at one point to 0.722% in late July. Thereafter, yields rose slightly on positive U.S.
economic indicators and expectations that monetary easing by Japanese, European and U.S. central banks would provide an
economic stimulus. However, by the end of September 2012 10-year JGB yields had fallen back to 0.778%, down substantiallyfrom their level of 0.989% as of March 31, 2012.
Stock market performance was soft. Against a backdrop of anxiety about global economic deceleration and ongoing yen
appreciation, concerns about delayed recovery in corporate performance mounted, particularly in the manufacturing sector. The
Nikkei Stock Average, at ¥10,083.56 on March 31, 2012, fell to ¥8,238.96 at one point in June. The Tokyo Stock Price Index(TOPIX), at 854.35 points on March 31, 2012, dropped as low as 692.18 at one point in June—the lowest level since the burstingof Japan’s economic bubble. Thereafter, monetary easing by the central banks of Japan, Europe and the United States prompted
expectations of economic stimulus. This factor, plus a temporary reprieve in ongoing yen appreciation caused downward pressure
on stock prices to ease slightly, but as of September 30, 2012, the Nikkei was ¥8,870.16, down substantially from its level on
March 31, 2012.
On foreign exchange markets, the yen traded primarily in the range of ¥75–80 against the U.S. dollar. Concerns about a global
economic slowdown led to buying of the yen as a “safe haven” currency. Narrowing interest rate spreads between the yen and the
U.S. dollar also prompted yen appreciation. Furthermore, with the Japanese and U.S. central banks both expanding the scope of
their quantitative easing measures, the range of trading between the two currencies remained unforeseeable. On September 30,
2012, the yen was trading at ¥77.96 to the U.S. dollar. As the European debt crisis grew increasingly serious, the yen appreciatedagainst the euro, rising from ¥110.56 on March 31, 2012, to ¥94.12 in late July. However, agreement on a program to purchasesovereign debt then caused concerns of a credit spread to abate, again encouraging euro purchases. As of September 30, 2012, theeuro was trading at ¥100.21.
(2) Investment Policy
Our basic investment policy on general account assets is to create an investment portfolio that generates stable profits over the
medium to long term while considering the soundness of invested assets and their debt characteristics. We secure 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. Regarding, investment of equity assets, we invest them by controlling the allocation andensuring a balance between profitability and market risks.
(3) Results of Investment
As of September 30, 2012, general account assets totaled ¥5,040.4 billion, up 5.5%, or ¥261.9 billion, from March 31, 2012.
Within the general account assets, investment in Japanese government and corporate bonds totaled ¥4,244.6 billion (accounting
for 84.2% of total general account assets), foreign bonds ¥60.6 billion (1.2%), Japanese stocks ¥32.9 billion (0.7%), monetarytrusts ¥295.5 billion (5.9%), policy loans ¥140.8 billion (2.8%), real estate ¥72.1 billion (1.4%), and cash and deposits and callloans ¥58.5 billion (1.2%).

1
2

Announced on September 10, 2012.
Initial preliminary report expected on November 12, 2012.

4

3. Status of Investment Assets (General Account)(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
JGBs, other bonds
Japanese stocks
Foreign securities
Bonds
Stocks, etc.
Other securities
Loans
Real estate
Deferred tax assets
Other assets
Reserve for possible loan losses
Total
Of which, foreign-currency-denominated assets

As of March 31, 2012
Amount%64,869288,297
4,114,529
3,975,755
45,052
90,162
59,63230,5293,558
138,90972,96026,986
72,219(214)
4,778,556
42,996

1.4
6.0
86.1
83.2
0.9
1.9
1.2
0.6
0.1
2.9
1.5
0.6
1.5
(0.0)
100.0
0.9

As of September 30, 2012
Amount%58,562
1.2
295,5205.9
4,372,002
86.7
4,244,685
84.2
32,901
0.7
90,5891.8
60,617
1.2
29,972
0.6
3,827
0.1
141,002
2.8
72,101
1.4
23,571
0.5
77,937
1.5
(216)
(0.0)
5,040,483
100.0
42,8200.8

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, 2011

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
JGBs, other bonds
Japanese stocks
Foreign securities
Bonds
Stocks, etc.
Other securities
Loans
Real estate
Deferred tax assets
Other assets
Reserve for possible loan losses
Total
Of which, foreign-currency-denominated assets(19,082)
10,226230,677
234,817(15,881)
15,002
15,233(231)(3,260)2,752(1,036)(11,136)(7,684)
9
204,726
14,964

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

5

For the six months ended
September 30, 2012
(6,306)
7,223
257,473
268,929(12,151)
427
984
(557)
268
2,092
(858)
(3,414)5,718(1)
261,926(176)

(3) Investment Income(Millions of yen)

Category

For the six months ended
September 30, 2011

Interest income and dividends

For the six months ended
September 30, 2012
47,478Interest income from deposits

52,1990

0Interest income and dividends from securities

39,10044,048Interest income from loans

2,670

2,705

Income from real estate for rent

5,647

5,431

60

14

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

-

-

2,646

2,622

-

-

1,911

1,169

Gains on sale of Japanese bonds

39

0

Gains on sale of Japanese stocks

1,676

1,169

Gains on sale of foreign securities

194

-

-

-

Gains on redemption of securities--

Gains on derivatives, net--

Foreign exchange gains, net--

Reversal of reserve for possible loan losses--

Other investment income

10

13

52,04756,005

Other

Total

(4) Investment Expenses(Millions of yen)

Category

For the six months ended
September 30, 2011

For the six months ended
September 30, 2012

Interest expenses

30

22

Losses on securities under proprietary accounts--

Losses on monetary trusts, net--

Losses on trading securities, net

-

-

1,528

201

Losses on sale of Japanese bonds--

Losses on sale of Japanese stocks

1,528

201

Losses on sale of foreign securities

-

-

Other

-

-

866

327

Losses on sale of securities

Devaluation losses on securities
Devaluation losses on Japanese bonds--

Devaluation losses on Japanese stocks

866

327

Devaluation losses on foreign securities

-

-

Other

-

-

Losses on redemption of securities--

Losses on derivatives, net--

Foreign exchange losses

693

444

Provision for reserve for possible loan losses

6

1

Write-off loans--

Depreciation of real estate for rent and others

1,162

1,059

Other investment expenses

3,257

3,156

7,545

5,213

Total

6

(5) Valuation Gains (Losses) on Trading-purpose Securities(Millions of yen)

As of March 31, 2012

As of September 30, 2012

Net valuation
gains (losses)
recorded inincomeCategory
Balance sheet amount-

Trading-purpose securities

Net valuation
gains (losses)
recorded inincomeBalance sheet amount

-

-

-

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, 2012

As of March 31, 2012
Net unrealized gains (losses)
Category

Held-to-maturity securities

Carrying
amountFair value

3,404,821

Net unrealized gains (losses)

Unrealized Unrealized
gains
losses3,560,687

155,865

160,172

4,307

Carrying
amountFair value

3,632,978Unrealized
gains

3,838,414

205,435

Unrealized
losses206,635

1,199

Policy reserve matching bonds

-

-

-

-

-

-

-

-

-

-

Stocks of subsidiaries andaffiliated companies

-

-

-

-

-

-

-

-

-

-

Available-for-sale securities

895,142956,125

60,983

61,345

JGBs, other bonds

849,186

902,676

53,49053,490Japanese stocks

29,106

34,970

5,863

6,225

Foreign securities
Bonds

361

915,079

992,963

77,88378,681

876,782

950,909

74,12674,181798
54

20,61822,789

2,170

2,913

743

15,373

16,770

1,397

1,397

-

16,202

17,515

1,313

1,313

-

15,373

16,770

1,397

1,397

-

16,202

17,515

1,313

1,313

-

Stocks, etc.
Other securities

361

1,476

Monetary claims purchased

1,708

-

232

-

-

-

232
-

-

1,476

-

1,749

-

273

-

-

-

-

-

273
-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

-

Total

4,299,963

4,516,813

216,849

221,518

4,668

4,548,058

4,831,377

283,319

285,317

1,998

JGBs, other bonds

4,211,145

4,417,819

206,674

210,9814,307

4,466,659

4,746,413

279,754

280,724969

Japanese stocks

29,106

34,970

5,863

6,225

361

20,61822,789

2,170

2,913

743

Foreign securities

58,23562,314

4,078

4,078

-

59,30360,425

1,121

1,406

284

-

59,303

Bonds

58,235

Stocks, etc
Other securities

62,314
-

1,476

4,078
-

1,708

4,078
-

232

232

-

60,425
-

1,476

1,121
-

1,749

1,406
-

273

284
-

-

273

-

Monetary claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

-

Notes:
1. The above table includes assets which are permitted to be treated as equivalent to securities defined in the Financial Instruments and Exchange Law of Japan.
2. The above table included monetary trusts other than trading-purpose securities, and their carrying amount and net unrealized gains (losses) as of September 30, 2012 amounted to¥268,557 million and ¥27,543 million respectively.
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, 2012

As of September 30, 2012

Held-to-maturity securities--

Unlisted foreign bonds--

Others--

Policy reserve matching bonds--

Stocks of subsidiaries and affiliated companies

15,625

15,655

Available-for-sale securities

27,09026,779Unlisted domestic stocks (except OTC stocks)

4

4

Unlisted foreign stocks (except OTC stocks)

1,084

1,103

Unlisted foreign bonds
OthersTotal--

26,001

25,671

42,71542,435c. 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 March 31, 2012
Category

Held-to-maturity securities

Net unrealized gains (losses)

Carrying
amountFair value

3,404,821

Policy reserve matching bonds

As of September 30, 2012

Unrealized
gains

3,560,687-

155,865-

Stocks of subsidiaries and affiliated companies

15,625

15,625

Available-for-sale securities

160,172

4,307
-

-

-

-

-

922,232

982,962

60,72964,330849,186

902,676

53,49053,490Japanese stocks

29,111

34,974

5,863

6,225

Foreign securities

Fair value

3,632,978-

JGBs, other bonds

Net unrealized gains (losses)

Carrying
amountUnrealized
losses3,601
361

Unrealized
gains

3,838,414-

205,435-

Unrealized
losses206,635

1,199

-

-

-

-

-

-

15,655

15,655

941,859

1,019,469

77,61081,859876,782

950,909

74,12674,181

54

20,623

22,793

2,170

2,913

743

4,248

16,45718,024

1,567

1,567

-

17,30518,751

1,445

1,445

-

Bonds

15,373

16,770

1,397

1,397

-

16,202

17,515

1,313

1,313

-

Stocks, etc.

1,084

1,254

169

169

-

1,103

1,236

132

132

Other securities

27,47827,286

(191)

3,047

27,14727,015

(132)

3,317

3,239

3,450

Monetary claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

Total

-

4,342,679

4,559,274

216,594

224,503

7,908

4,590,493

4,873,539

283,046

288,495

5,448

JGBs, other bonds

4,211,145

4,417,819

206,674

210,9814,307

4,466,659

4,746,413

279,754

280,724969

p
Japanesestocks

39,18845,052

5,863

6,225

361

30,73032,901

2,170

2,913

743

Foreign securities

64,867

69,116

4,248

4,248

-

65,955

67,209

1,254

1,539

284

Bonds

58,23562,314

4,078

4,078

-

59,30360,425

1,121

1,406

284

Stocks, etc

6,632

6,801

169

169

-

6,651

6,784

132

132

Other securities

27,47827,286

(191)

3,047

27,14727,015

(132)

3,317

3,239

3,450

Monetary claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

-

8

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

As of March 31, 2012
Category

Monetary trusts

Net unrealized gains (losses)

Balance
Fair value
sheet amount
288,297

As of September 30, 2012

288,297

Unrealized Unrealized
gains
losses-Balance sheet
Fair value
amount295,520

295,520

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

Monetary trusts for investment(Millions of yen)

As of March 31, 2012
Category

As of September 30, 2012

Net valuation gains (losses)
recorded in income

Balance sheet amount-

Monetary trusts for investment

Net valuation gains (losses)
recorded in income

Balance sheet amount

-

-

-

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

Monetary trusts for held-to-maturity and policy reserve matching and other monetary trusts
As of March 31, 2012

(Millions of yen)

As of September 30, 2012

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

-

-

-

-

-

-

-

-

-

-

267,887

288,247

20,35920,359-267,926

295,470

27,54327,543-

Other monetary trusts

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

94. Non-consolidated Balance Sheets(Millions of yen)

As of March 31, 2012

As of September 30, 2012

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
Commercial loans
Tangible fixed assets
Intangible fixed assets
Due from reinsurers
Other assets
Deferred tax assets
Reserve for possible loan losses
Total Assets

19,80856,300288,297
4,545,019
4,071,699
10,48544,035
69,149230,172
138,909
138,782
127
73,67824,25765
49,73626,986(214)
5,222,846

4,346,515
10,25042,94256,072
231,624
141,002140,895
106
72,78824,849497
53,272
23,571(216)
5,484,323

Liabilities:
Policy reserves and others
Reserve for outstanding claims
Policy reserves
Reserve for policyholders' dividends
Due to agencies
Due to reinsurers
OtherOte liabilities
ab t es

4,871,182
24,0394,843,020
4,122
1,664
581
38,193,

5,111,552
22,563
5,085,051
3,936
1,559
517
33,904,

10,255263
642
27,031
20,310168
25,31925,319589

11,297253
649
21,702
21,556
158
28,60428,604589

4,958,009

5,198,442

70,0005,865
5,865
156,335
13,238143,096
143,096
232,200
34,032(1,395)32,636
264,836
5,222,846

70,0005,865
5,865
165,638
15,058150,579
150,579
241,503
45,773(1,395)44,378285,8815,484,323

Accrued income tax
Lease obligations
Asset retirement obligations
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

30,72043,200295,520
4,799,115

5. Non-consolidated Statements of Income(Millions of yen)
For the six months ended
September 30, 2011

For the six months ended
September 30, 2012

AmountOrdinary Revenues
Income from insurance premiums(Insurance premiums)
Investment income(Interest income and dividends)(Income from monetary trusts, net)
(Gains on sale of securities)
Other ordinary income
Ordinary Expenses
Insurance claims and other payments(Insurance claims)(Annuity payments)(Insurance benefits)(Surrender payments)(Refund to policyholders)
Provision for policy reserves and others
Provision for policy reserves
Interest on policyholders' dividend reserve
Investment expenses(Interest expenses)(Losses on sale of securities)(Devaluation losses on securities)(Losses on separate accounts, net)
Operating expenses
Other ordinary expenses
Ordinary Profit
Extraordinary Losses
Losses on disposal of fixed assets
Iil
Impairment
lossesProvision for reserve for price fluctuations
Provision for reserve for price fluctuations
Reversal of reserve for policyholders' dividends
Income Before Income Taxes
Income Taxes -current
Income Taxes -deferred
Total Income Taxes
Net Income

11

Amount454,871395,732
395,471
52,04747,478
2,646
1,911
7,092
426,277
137,285
36,3603,913
16,264
78,637
1,106
200,866
200,858
7
29,38430
1,528
866
21,83851,576
7,165
28,5933,892
16
0488,960
428,846428,237
56,00552,199
2,622
1,169
4,108
457,575
135,344
34,7584,430
16,897
77,1701,145
242,037
242,0316
18,75222201
327
13,53853,648
7,793
31,384
3,381
14
81

3,875
3,875
37
24,738
9,588
(513)
9,075
15,663

3,285
3,285
28
28,03011,592(1,964)
9,627
18,402

6. Reconciliation to Core Profit and Non-consolidated Ordinary Profit(Millions of yen)

For the six months ended
September 30, 2011
Core profit

A

Capital gains
Income from monetary trusts, net

For the six months ended
September 30, 2012

31,68533,309

1,911

1,169

-

-

Income from trading securities, net--

Gains on sale of securities

1,911

1,169

Gains on derivatives, net--

Foreign exchange gains, net--

Other capital gains

-

-

3,088

1,008

-

-

Capital losses
Losses on monetary trusts, net
Losses on trading securities, net--

Losses on sale of securities

1,528

201

Devaluation losses on securities

866

327

Losses on derivatives, net
Foreign exchange losses, net
Other capital losses

-

-

693

444

-

34

Net capital gains (losses)

B(1,176)

161

Core profit plus net capital gains (losses)

A+B

30,50933,470--Gains from reinsurance--

Reversal of contingency reserve--

Reversal of specific reserve for possible loan losses--

Other one-time gains

OthersOther one-time losses

-

-

1,915

2,086

Losses from reinsurance
Provision for contingency reserve

-

-

1,769

1,965

Provision for specific reserve for possible loan losses

61

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

Write-off of loans

-

-

139

119

C

(1,915)(2,086)

A+B+C

28,59331,384

OthersNet other one-time gains (losses)
Ordinary profit

Notes:
1. Core profit for the six months ended September 30, 2011 (A) includes income gains of ¥2,646 million in income from monetary trusts; "Others" of other one-time losses included
provision of additional policy reserve of ¥139 million.
2.Core profit for the six months ended September 30, 2012 (A) includes income gains of ¥2,622 million in income from monetary trusts; other capital losses include
impairment losses of ¥34 million from investment partnership; "Others" of other one-time losses included provision of additional policy reserve of ¥119 million.

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

As of September 30, 2012

As of March 31, 2012
－
－
－
－
[－]
141,384
141,384

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

－
－
－
－
[－]
143,489
143,489

Notes:
1. Bankrupt and quasi-bankrupt loans are loans to borrowers who are subject to bankruptcy, corporate reorganization or rehabilitation or other similar proceedings andother borrowers 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 (excluding loans described in notes 1. and 2. above) and loans
with terms and conditions have been amended in favor of the borrowers (e,g, reduction of the original interest rate, deferral of interest payments, extension ofprincipal and/or waivers) in order to support the borrowers' recovery from financial difficulties (excluding loans described in notes 1. and 2. above and loans on whichprincipal and/or interest are pase due for three months or more).
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 March 31, 2012

(A)

As of September 30, 2012

722,175

792,486

Common stock, etc.

223,100

240,995

Reserve for price fluctuations

25,31928,604

Contingency reserve

55,33857,3030

0

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

54,656

69,849Net unrealized gains on real estate multiplied by 85% (100% if losses)

(173)

(156)

Unallocated portion of reserve for policyholders' dividends

700

1,126

-

-

Deferred tax assets

58,774

66,732

Excess amount of policy reserves based on Zillmer method

350,404

361,303--(45,945)(33,272)--

72,93073,732

General reserve for possible loan losses

Amount excluded from deferred tax assets

Subordinated debt
The portion of the excess amount if policy reserves based on Zillmer method andsubordinated debt that is not included in the margin
Deductible items
Total risk

(R1  R8 ) 2  (R2  R3  R7 ) 2  R4

(Ｂ)

Insurance risk

R1

20,85021,244

Third-sector insurance risk

R8

7,509

7,650

Assumed interest rate risk

R2

28,50928,808Minimum guarantee risk

R7

9,904

10,117

Asset management risk

R326,741

26,845Business management risk

R4

1,870

1,893

1,980.4%

2,149.6%

Solvency margin ratio
(A)
x 100
(1/2) x (B)Notes: 1. The figures were calculated based on provisions in Articles 86 and 87 of the Ordinance for Enforcement of the Insurance Business Act of Japanand the Ministry of Finance Public Notice No. 50 of 1996.
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 March 31, 2012

Individual variable life insurance and individual variable annuities

As of September 30, 2012
444,289

Group annuities

443,839-

Total separate account-444,289

443,839

Note: 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
As of March 31, 2012

Category

NumberAs of September 30, 2012

AmountNumberAmountVariable life insurance (whole life type)552

6,955,907

561

6,982,245

Variable life insurance (limited term type)42

142,82842

142,468

Variable life insurance (term type)1

48,924

1

46,834596

7,147,660

605

7,171,547

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

Individual variable annuities(Number: Thousand, Amount: Millions of yen)

As of March 31, 2012

Category

NumberIndividual variable annuities

As of September 30, 2012

Amount28

149,528

NumberAmount27

147,188

Note: The amount of individual variable annuities is 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.

15

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

Category

For the six months ended
September 30, 2011

For the six months ended
September 30, 2012

Ordinary Revenues

454,987

489,063

Ordinary Profit

28,14130,732Net Income

15,21917,825Comprehensive Income

35,62729,782Category

As of March 31, 2012

As of September 30, 2012

Total assets

5,219,990

5,481,147

Solvency Margin Ratio

2,051.5%

2,228.2%(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, 2012
AmountAs of September 30, 2012
AmountAssets:Cash and deposits

20,59331,771

Call loans

56,30043,200

Monetary trusts

288,297295,520

4,541,228

4,794,602

Loans

138,931141,028

Tangible fixed assets

73,69072,800Intangible fixed assets

24,257

24,852

Securities

Due from reinsurers

65

497

Other assets

49,79953,326

Deferred tax assets

27,039(214)

23,763(216)

5,219,990

5,481,147

4,871,461

5,111,876

24,041

22,566

4,843,297

5,085,373

4,122

3,936

Due to agencies

1,664

1,559

Due to reinsurers

582

518

Other liabilities

38,251

33,961

Reserve for employees' retirement benefits

20,31521,558Reserve for possible loan losses
Total Assets
Liabilities:
Policy reserves and others
Reserve for outstanding claims
Policy reserves
Reserve for policyholders' dividends

Reserve for directors' retirement benefits

168

158

25,31928,604

Reserve for price fluctuations

25,31928,604

Deferred tax liabilities on land revaluation

589

589

4,958,352

5,198,827

70,00070,000Reserve for price fluctuations

Total Liabilities
Net Assets:
Common stock
Capital surplus

5,865

5,865

Retained earnings

153,479

162,204

Total shareholder's equity

229,344

238,069

Net unrealized gains on other securities, net of taxes

34,142(1,395)45,858(1,395)

(453)

(212)

Land revaluation, net of taxes
Foreign currency translation adjustments
Total accumulated other comprehensive income

32,29344,250Total Net Assets

261,637

282,320

5,219,990

5,481,147

Total Liabilities and Net Assets

17

(4) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
For the six months ended
September 30, 2011

For the six months ended
September 30, 2012

AmountAmountOrdinary Revenues

454,987

489,063

Income from insurance premiums

395,771428,899

Investment income

52,12347,53556,09852,253(Interest income and dividends)(Income from monetary trusts, net)

2,646

2,622

(Gains on sale of securities)

1,930

1,209

Other ordinary income

7,092

4,065

Ordinary Expenses

426,845458,331

Insurance claims and other payments

137,299

135,349(Annuity payments)

36,365
3,913

34,761
4,430(Insurance benefits)

16,264

16,897(Surrender payments)

78,644

77,171

Provision for policy reserves and others

200,882

242,065

Provision for policy reserves

200,874

242,059(Insurance claims)

Interest on policyholders' dividend reserve
Investment expenses(Interest expenses)(Losses on sale of securities)

7

6

29,403

18,818

30
1,528

22
201

(Devaluation losses on securities)

866

327

(Losses on separate accounts, net)

21,83813,538Operating expenses

51,65753,743

Other ordinary expenses

7,602

8,354

Ordinary Profit

28,14130,732Extraordinary Gains
Gains on sale of fixed assets
Extraordinary Losses
Losses on disposal of fixed assets
Impairment losses
Provision for reserve for price fluctuations
Provision for reserve for price fluctuations
Reversal of reserve for policyholders' dividends

0

-

0

-

3,892

3,381

16

14

0

81

3,875

3,285

3,875

3,285
28

37

Income Before Income Taxes

24,28627,378

Income Taxes -current

9,588

11,592

Income Taxes -deferred

(521)
9,066

(2,039)Total Income Taxes
Income Before Minority Interests

15,21917,825Net Income

15,21917,82518

9,553

(Consolidated Statements of Comprehensive Income)(Millions of yen)
For the six months ended
September 30, 2011

For the six months ended
September 30, 2012

AmountAmountIncome Before Minority Interests

15,21917,825

Other Comprehensive Income

20,407
20,423

11,957
11,715

Foreign currency translation adjustments

(13)

241

Share of other comprehensive income of affiliates
accounted for using equity method

(2)

(0)

Net unrealized gains on other securities, net of taxes

Comprehensive Income
Comprehensive income attributable to parent company
Comprehensive income attributable to minority interests

35,62729,78235,627

26,782-19-

(5) Consolidated Solvency Margin Ratio(Millions of yen)

Category

As of March 31, 2012

Total solvency margin

As of September 30, 2012

706,777

776,530

Common stock, etc.

220,244

237,561

Reserve for price fluctuations

25,31928,604

Contingency reserve

55,33857,303

Catastrophe reserve--

General reserve for possible loan losses

0054,764

69,971

(173)

(156)

700

1,126

(A)

Net unrealized gains on other securities multiplied by 90% (100% if
losses)Net unrealized gains on real estate multiplied by 85% (100% if
losses)Unallocated portion of reserve for policyholders' dividends
Amount excluded from deferred tax assets--

Deferred tax assets

58,774

66,732

Excess amount of policy reserves based on Zillmer method

350,404

361,303--

The portion of the excess amount if policy reserves based on Zillmer
method and subordinated debt that is not included in the margin(48,801)(36,706)

Deductible items(9,793)(9,210)68,90069,698Subordinated debt

(B)

Total risk
Insurance risk

R1

20,852

21,247

Ordinary insurance risk

R5

-

-

Major Catastrophe risk

R6

-

-

7,510

7,651

-

-

28,50928,808

9,904

10,117

Third-sector insurance risk

R8

Insurance risk of small-amount short-term insurance providers
Assumed interest rate risk
Minimum guarantee risk

R9

R2
R7

Asset management risk

R322,41522,507

Business management risk

R4

1,783

1,806

x 100

2,051.5%

2,228.2%

Solvency margin ratio(A)(1/2) x (B)Notes: 1. The figures were calculated based on provisions in Articles 86-2 and 88 of the Ordinance for
Enforcement of the Insurance Business Act of Japan and Public Notice of Financial Services Agency No. 23 of 2011.
2. Minimum guarantee risk was calculated based on the standardized approach.

20

(Reference) 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, 2012, are as follows. Sony Lifeholds no sub-prime related investments.

(1) Special-purpose entities (SPEs)
Fair value

－
－
－
－
－
－
－

Special purpose entities (SPEs)
ABCP
facilitated by Sony Life
SIV
facilitated by Sony Life
Other
facilitated by Sony Life

Unrealized
gains (losses)
－
－
－
－
－
－
－

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

Unrealized
gains (losses)
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

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

－
－
－
－
－
－

Other sub-prime (Alt-A exposure)Non-securitized loans
RMBS
Derivatives
Commitment line
Other
21

Unrealized
gains (losses)
－
－
－
－
－
－

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

(4) Commercial mortgage-backed securities (CMBS)
Fair value
As of March 31, 2012

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

(5) Leveraged financeFair value
As of March 31, 2012

Leveraged financeCommunications
Electronics
Entertainment
Services
Other

－
－
－
－
－
－

－
－
－
－
－
－

(6) Other notes
Sony Life holds principal protected 30-year notes with NIKKEI 225 index-linked coupons (fair market value of ¥42.9 billion andunrealized losses of ¥0.1 billion as of September 30, 2012). These amounts are included in "Net unrealized gains (losses)” of Sony Life’s“Fair Value Information on Securities” as of September 30, 2012.

22