May 19, 2020
Sony Financial Holdings Inc.

Summary Information on Sony Life’s Financial Results
for the Fiscal Year Ended March 31, 2020
<Contents>
1. Key Operating Performance

P.2

2. Policy Amount in Force by Insurance Function

P.4

3. Example of Policyholder Dividend, based on Figures for the Fiscal Year Ended March 31, 2020

P.5

4. Status of Investment Assets (General Account)

P.6

5. Non-consolidated Balance Sheets

P.13

6. Non-consolidated Statements of Income

P.14

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

P.15

8. Loans by Borrower Category

P.16

9. Risk-monitored Loans

P.16

10. Solvency Margin Ratio

P.17

11. Status of Separate Account Assets

P.19

12. Consolidated Summary

P.20

Disclaimer:This English translation is prepared for the readers' convenience. When there are any discrepancies between original Japanese version
and English translation version, the original Japanese version always prevails.

11. Key Operating Performance(1) Policy Amount in Force and New Policy Amount(Number: Thousand, Amount: 100 millions of yen, %)Policy amount in force

As of March 31, 2019
Category

NumberComparison to
Mar. 31, 2018

As of March 31, 2020

AmountComparison to
Mar. 31, 2018

NumberComparison to
Mar. 31, 2019

AmountComparison to
Mar. 31, 2019

Individual life insurance
7,513
102.7
476,762
103.9
7,708
102.6
487,789102.3
Individual annuities
334
132.4
18,946
139.2
452
135.2
26,686140.8
Subtotal
7,847
103.7
495,708
104.9
8,160
104.0
514,476103.8
Group life insurance－－
19,03399.1－－
18,016
94.7
Group annuities
－
－
86
86.3
－
－
73
85.0
Notes:
1. The policy amount in force for individual 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 annuity payments have commenced.
2. The policy amount in force for group annuities is equal to the amount of policy reserves.
(Number: Thousand, Amount: 100 millions of yen, %)New policy amountFor the year ended March 31, 2019
Category

Comparison to
FY2017

NumberIndividual life insurance
Individual annuities
SubtotalGroup life insuranceGroup annuities

520
88
609
－
－

108.7
144.3
112.7
－
－

Comparison to
New policies
FY2017

Amount55,735
5,769
61,504
270－

Increase fromconversion

55,735
5,769
61,504
270
－

－
－
－

Comparison to
New policies
FY2018

Increase fromconversion

113.5
153.5
116.3
46.4
－

For the year ended March 31, 2020
Category

NumberComparison to
FY2018AmountIndividual life insurance
509
97.9
45,632
81.9
45,632－
Individual annuities
126
143.1
8,357
144.9
8,357
－
Subtotal
636
104.5
53,98987.8
53,989－Group life insurance
－
－
171
63.5
171
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 sum of the initial premium payments.

(2) Annualized Premiums(Millions of yen, %)Policy amount in force

Category
Individual life insurance
Individual annuities

Total
Medical protection, living benefit protection andother products

As of March 31, 2019

Comparison to
Mar. 31, 2018

As of March 31, 2020

Comparison to
Mar. 31, 2019

836,267
53,079889,347

103.6
128.3
104.8

852,794
69,986
922,781

102.0
131.9
103.8

197,520102.9

201,358

101.9(Millions of yen, %)New policies

Category
Individual life insurance
Individual annuities

Total
Medical protection, living benefit protection andother products

For the year ended
March 31, 2019

Comparison to
FY201774,702
116.9
13,216
143.7
87,918120.3
15,251117.5

For the year ended
March 31, 2020

Comparison to
FY201863,49685.0
18,650141.1
82,14693.4
12,901

84.6

Notes:
1. Annualized premiums refer to an amount that is calculated by multiplying individual premium amounts by a coefficient that differs dependingon the premium payment methods, thereby converting the figure to a per-year premium. (For single premium policies, premiums are divided
by the number of coverage years.)
2. Annualized premiums for “medical protection, living benefit protection and other products” include those for medical protection benefits(hospitalization benefits, surgical procedure benefits, etc.) and living benefit protection (benefits for specific diseases, nursing care benefits, etc.)2(3) Major P/L Items
Category
Income from insurance premiums(Millions of yen, %)For the year ended
March 31, 2019

Comparison
to FY2017

For the year ended
March 31, 2020

Comparison
to FY2018

1,136,104107.3

1,330,860

117.1

Investment income

278,935

114.6

193,718

69.4

Insurance claims and other payments

457,252104.7

511,945112.0

Investment expenses

24,63874.4

68,127276.5

Ordinary profit

79,812141.7

88,720111.2(4) Total Assets
Category
Total assets(Millions of yen, %)As of March 31, 2019

Comparison to
Mar. 31, 2018

As of March 31, 2020

Comparison to
Mar. 31, 2019

10,380,148

108.5

11,237,124

108.3

3

2. Policy Amount in Force by Insurance Function as of March 31, 2020
(Number: Thousand, Amount: 100 millions of yen)
Category

Individual life
insurance

Individual annuities

Group life insurance

NumberNumberAmountNumberAmountAmount

Total

NumberAmountOrdinary death

6,545

470,253

－

－

1,563

18,0168,108

488,269

Accidental death642

59,523

－

－

11

2

654

59,526

Death protection
with other conditions

313

9,849

－

－

－

－

313

9,849

1,163

17,536452

26,686

0

0

1,615

44,222

Accidental hospitalization

2,691

177

－

－

16

0

2,708

177

Disease hospitalization

2,691

177

－

－

－

－

2,691

177

Hospitalization
with other conditions

825

67

－

－

－

－

825

67

Disability protection

910

－

－

－

16

－

927

－

Surgery protection

1,727

－

－

－

－

－

1,727

－

Death protection

Living protection
Hospitalization protection

Asset-formation insurance,
asset-formation annuities

Group annuities
Category

Living protection

Category

Hospitalization protection

NumberAmount41

73

Number－Medical protection
insurance

Amount－

Total
NumberAmount41

73

Disability insurance
Category

NumberAmount－－NumberDisability protection

Amount－Notes:
1. The numbers of policies for group life insurance products, and group annuity product reflects the total numbers of insured parties.
2. Of the policy amount in the living protection column, policy amount in force for individual annuities and group life insurance(annuity payment rider) 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 annuity payments
have commenced. The policy amount in force for group annuity products is the amount of policy reserves.
3. Figures for hospitalization protection show the daily benefits for hospitalization.

4－

3. Example of Policyholder Dividend, based on Figures for the Fiscal Year Ended March 31, 2020
(1) Standard dividend yields for semi-participating individual life insurance and individual annuities with
policyholder dividends every five years(%)
For the year ended
March 31, 2019

For the year ended
March 31, 2020

Assumed interest rates of 1.00% or less

0.65

0.65

Assumed interest rates of more than 1.00%, and 2.00% or less

1.50

1.50

Assumed interest rates of more than 2.00%

1.35

1.35

Assumed interest rates of 0.85% or less

0.30

0.30

Assumed interest rates of more than 0.85%, and 2.00% or less

1.15

1.15

Assumed interest rates of more than 2.00%

1.00

1.00

Level-premiumSingle premium and others(2) The following is an example of policyholder dividends for semi-participating whole life nursing care insurance(before nursing care annuity payments commence) using figures for the fiscal year ended March 31, 2020.
Example: Semi-participating whole life nursing care insurance (before nursing care annuity payments commence)Entered at age 30, male, single premium,10x death benefit, basic care annuity amount of 0.5 million yen (sales suspension in July 2016)(%, Years, Yen)
Contract Date

Assumedinterest rate

November 2, 2015
November 2, 2014
November 2, 2013
November 2, 2012
November 2, 2011
November 2, 2010

1.00%
1.00
1.00
1.50
1.50
1.50

Years
elapsed5 years
67
8
910

Ongoing policy

Policies to which
nursing care applies,
ending at death of policyholder¥34,432
－
－
－
－
0

Note:
1. The “Policies to which nursing care applies, ending at death of policyholder” column shows the amount receivable fornursing care or upon death. The number of years elapsed is the number through November 2, 2020.
2. The amount of policyholders' dividends above is the sum of the prorated dividend amount (policy reserve x dividend participation ratio)
and interest through November 2, 2020 (excluding dividends already paid).
Dividend participation ratio = Standard dividend yield - Assumed interest rate(3) Standard dividend yield on group annuities
The standard dividend yield on group annuities is 0.70%, using figures for the fiscal year ended March 31, 2020.
Note: Dividend participation is calculated as follows:
Dividend amount = Policy reserve x Dividend participation ratio
Dividend participation ratio = Standard dividend yield - Assumed interest rate(4) For group term life insurance and other products, a reserve for policyholders’ dividends is accumulated
in accordance with each product’s characteristics

5¥34,432
5,873
11,793000

4. Status of Investment Assets (General Account) for the Fiscal Year Ended March 31, 2020
(1) Status of Investment Assets for the Fiscal Year Ended March 31, 2020(i)

Investment Environment

The Japanese economy slowed down during the fiscal year ended March 31, 2020. Although the first half of the fiscal year saw a moderate economic
growth, the growth decelerated during the October-December quarter due to the impact of natural disasters and the consumption tax hike. The global spreadof novel coronavirus infections (COVID-19) in the January-March quarter led to the further weakening of the domestic economy. Meanwhile, prices rosefor 39 consecutive months with March core CPI rising 0.4% year on year. The October-December real GDP shrank 1.8% (annualized contraction of 7.1%)
as downward pressures were applied by a 2.8% year-on-year drop in private consumption and a 4.6% year-on-year decline in capital expenditure.

Yields on the bond market rose albeit with fluctuations. 10-year Japanese government bond (JGB) yields declined in the first half of the fiscal year as
concerns grew over economic recessions caused by the U.S.-China trade friction. The subsequent progress in the U.S.-China trade talks ignited expectations
for a global economic turnaround, leading to the higher yields. In February, though, JGB yields dipped as demands for JGBs, which were deemed safe
assets, grew amid the spread of COVID-19. The yields, however, again trended upward as investors cashed out their JGB holdings to meet the increasingneeds for cash on hand. The 10-year JGB yield as of March 31, 2020, was 0.031% (up 0.113 percentage point from a year earlier).

Stock markets contracted. In the first half of the fiscal year, the markets remained soft against the backdrop of the U.S.-China trade friction. With theprogress in the U.S.-China trade negotiations, stock prices rallied from September and the Nikkei Stock Average reached ¥24,000 in December when an
agreement was reached on a Phase One trade deal. A global increase in cases with COVID-19, however, triggered steep falls in share prices in February2020 and the Nikkei subsequently plummeted below ¥17,000. In response, national governments worldwide announced significant monetary easing andlarge-scale fiscal policies, which led to the recovery of the share prices to the ¥19,000 mark. The Nikkei Stock Average closed at ¥18,917.01 on March 31,
2020, (down ¥2,288.8 from a year earlier).

The Japanese yen strengthened against the U.S. dollar, albeit with significant fluctuations. In the first half of the fiscal year, the yen gained ground versus
the U.S. dollar against the backdrop of the shrinking interest rate differentials between the two countries and the U.S.-China trade friction. From September,the yen lost ground to the U.S. dollar falling to ¥112 at one stage, in response to the progress in the U.S.-China trade talks, strong economic indicators in
the U.S., and the growing risk appetites among investors. The yen then appreciated to ¥101 in March due to the emergency rate cuts and other monetaryeasing measures implemented by the Federal Reserve Board in response to the falling crude oil prices and spread of COVID-19. Thereafter, the risingdemand for the U.S. dollar, the key currency, put the brakes on the appreciation of the yen. As of March 31, 2020, USD/JPY stood at ¥108.83 (with the
yen gaining ¥2.16 from a year earlier).

6

(ii)

Investment Policy

Sony Life’s investment policy is to understand the characteristics of insurance liabilities, and prioritize investment in the assets that meet suchcharacteristics based on ALM (asset liability management, the comprehensive management of assets and liabilities). Specifically, Sony Life is investing
primarily in ultralong-term Japanese bonds with longer remaining maturity, to meet the long-term liabilities of life insurance policies, in an effort tomaintain adequate control over the risks associated with interest rate fluctuations involved in such insurance liabilities. Meanwhile, it is Sony Life’s
policy to limit its investment in risky assets including stocks.

(iii)

Results of Investment

As of March 31, 2020, general account assets totaled ¥9,914.9 billion, up 9.2%, or ¥835.4 billion, from a year earlier. Within general account assets,
Japanese bonds totaled ¥8,364.5 billion (accounting for 84.4% of total general account assets), foreign bonds ¥966.9 billion (9.8%), Japanese stocks¥28.0 billion (0.3%), policy loans ¥208.0 billion (2.1%), real estate ¥92.5 billion (0.9%), and cash and cash deposits ¥79.8 billion (0.8%).

7

(2) 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
Money held in trust
Securities
Japanese bonds
Japanese stocks
Foreign securities
Bonds
Stocks, etc.
Other securities
Loans
Real estate
Deferred tax assets
Other assets
Reserve for possible loan losses
Total
Foreign currency-denominated assets

As of March 31, 2019
Amount61,997－－－－269,387
8,339,691
7,745,342
28,611
564,666
542,126
22,5391,071
198,41090,804
14,248105,530(623)
9,079,446
562,095

As of March 31, 2020

%
0.7
－
－
－
－
3.0
91.9
85.3
0.3
6.2
6.0
0.2
0.0
2.2
1.0
0.2
1.2
(0.0)
100.0
6.2

Amount
79,846－－－－40
9,388,609
8,364,513
28,064
995,567
966,964
28,603464
208,632
92,55919,308
126,573(652)
9,914,916
985,116

%
0.8
－
－
－
－
0.0
94.7
84.4
0.3
10.0
9.8
0.3
0.0
2.1
0.9
0.2
1.3
(0.0)
100.0
9.9

Note: The amount for real estate is equivalent to the total amount of land, buildings and construction in progress.

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

Category

For the year ended March 31, 2019

Cash and deposits, call loans
Securities repurchased under resale agreements
Pledged money for bond borrowing transaction
Monetary claims purchased
Securities under proprietary accounts
Money held in trust
Securities
Japanese bonds
Japanese stocks
Foreign securities
Bonds
Stocks, etc.
Other securities
Loans
Real estate
Deferred tax assets
Other assets
Reserve for possible loan losses
Total
Foreign currency-denominated assets

21,135

17,848－－－－(1,194)
621,785
464,197(9,852)
167,755
175,555(7,799)(314)
8,924(1,542)
3,461(11,665)(328)
640,574
152,232－－－－(269,346)
1,048,917
619,170(547)
430,901
424,837
6,063(606)
10,221
1,755
5,059
21,043(29)
835,469
423,021

Note: The amount for real estate is equivalent to the total amount of land, buildings and construction in progress.

8

For the year ended March 31, 2020

(4) Investment Income(Millions of yen)

Category

For the year ended March 31, 2019

Interest income and dividends

For the year ended March 31, 2020

166,937

Interest income from deposits

181,81100150,733

164,700

Interest income from loans

6,828

7,049

Income from real estate for rent

8,831

9,710

543

350

Interest income and dividends on securities

Other interest income and dividends

－

－

4,490

4,013

－

156

6,107

3,637

－

－

Gains on securities under proprietary accounts
Income from money held in trust, net
Income from trading securities, net
Gains on sale of securities
Gains on sale of Japanese bonds
Gains on sale of Japanese stocks, etc.

6,107

3,440

Gains on sale of foreign securities－－

Others－197

Gains on redemption of securities－－

Gains on derivatives, net

－

4,098

13,455－－－

Foreign exchange gains, net
Reversal of reserve for possible loan losses－

1

190,990

193,718

Other investment income
Total(5) Investment Expenses(Millions of yen)

Category

For the year ended March 31, 2019

Interest expenses

For the year ended March 31, 2020

1,604

5,059

Losses on securities under proprietary accounts－−

Losses on money held in trust, net－−

Losses on trading securities, net

126−

Losses on sale of securities

34

50

Losses on sale of Japanese bond－－Losses on sale of Japanese stocks, etc.

34

50

Losses on sale of foreign securities

0

－

－

－

4,026

6,316

Losses on valuation of Japanese bonds－－

Losses on valuation of Japanese stocks, etc.

－

－

4,026

6,316

－

−

－

−

Others
Losses on valuation of securities

Losses on valuation of foreign securities
Others
Losses on redemption of securities
Losses on derivatives, net
Foreign exchange losses, net
Provision for reserve for possible loan losses
Write-off of loans
Depreciation of real estate for rent and others

13,925

−

－

6,345

329

43

－

−

1,599

1,637

Other investment expenses

2,992

2,683

Total

24,63822,1369

(6) Investment Efficiency(i) Investment yield by type of asset(%)

For the year ended
March 31, 2019

For the year ended
March 31, 2020

0.00

0.00

Securities repurchased under resale agreements－－

Pledged money for bond borrowing transaction－－

Monetary claims purchased－－

Securities under proprietary accounts－－

Money held in trust

1.93

1.90

Securities

2.11

1.79

Japanese bonds

1.76

1.71

Japanese stocks

32.26

19.34

Foreign securities

6.39

2.12

Loans

3.55

3.47

Real estate

5.81

6.95

Total

1.94
6.30

1.85
2.09

Category
Cash and deposits, call loans

Overseas investment
Notes:

1. The denominator for the investment yield calculation is a daily averaged carrying amount, while the numerator is investment
income minus investment expenses under ordinary profit (loss).
2. Valuation gains for Article 112 of the Insurance Business Act of Japan are not accounted for.
3. Yield on overseas investment is a total of foreign currency-denominated assets and yen-denominated assets.
(ii) Valuation gains (losses) on trading securities(Millions of yen)

As of March 31, 2019
Category

Trading securities

As of March 31, 2020

Net valuation gains(losses) recorded inincomeBalance sheet
amount
1,321

10

(160)

Net valuation gains(losses) recorded inincomeBalance sheet
amount－160

(ⅲ) Fair Value Information on Securities
a. Securities with fair value (except trading securities)(Millions of yen)
As of March 31, 2019
Category

Held-to-maturity securities
Policy-reserve-matching bonds
Stocks of subsidiaries and affiliated companies
Available-for-sale securities
Japanese bonds

As of March 31, 2020

Net unrealized gains (losses)

Carrying
amountFair value

6,770,008

8,800,847

680,757

764,282－

Net unrealized gains (losses)

Carrying
amountFair value

Unrealized
gains

Unrealized
losses

Unrealized
gains

Unrealized
losses2,030,838

2,051,389

20,551

7,349,139

9,768,470

83,52583,733208

855,937

997,896

2,419,331

2,425,393

6,061

141,958

142,397

－

－

－

－

－

438

－

－

－

964,854

1,132,524

167,670

169,8102,140－

967,259

1,137,460

170,201

170,267

867,645

1,024,732

157,086

157,086－66

873,327

1,007,815

134,487

134,515

28

Japanese stocks

9,685

19,143

9,458

9,555

96

4,825

9,587

4,762

4,800

37

Foreign securities

87,357

88,341

984

3,027

2,043

89,106

120,057

30,95030,950－

Bonds

79,56881,811

2,243

3,027

784

87,634

118,584

30,95030,950－Stocks, etc.

7,788

6,529

(1,259)

－

1,259

1,472

1,472

－

－

－

Other securities

165

307

141

141

－

－

－

－

－

－

Monetary claims purchased

－

－

－

－

－

－

－

－

－

－

Certificates of deposit

－

－

－

－

－

－

－

－

－

－

Others

－

－

－

－

－

－

－

－

－

－

Total

8,415,620

10,697,654

2,282,034

2,304,933

22,8999,172,336

11,903,828

2,731,491

2,738,058

6,566Japanese bonds

7,858,097

10,129,659

2,271,562

2,277,594

6,032

8,230,025

10,590,705

2,360,679

2,367,208

6,528Japanese stocks

9,685

19,143

9,458

9,555

96

4,825

9,587

4,762

4,800

37

Foreign securities

547,671548,543872

17,642

16,770937,485

1,303,535

366,049

366,049－

539,883

542,0142,131

17,642

15,511

936,013

1,302,062

366,049

366,049－

Stocks, etc.

7,788

6,529

(1,259)

－

1,259

1,472

1,472

－

－

－

Other securities

165

307

141

141

－

－

－

－

－

－

Monetary claims purchased

－

－

－

－

－

－

－

－

－

－

Certificates of deposit
Others

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

Bonds

Notes:
1. The above table includes assets that are permitted to be treated as equivalent to securities defined in the Financial Instruments and Exchange Act of Japan.
2. Carrying amount and net unrealized gains (losses) on money held in trust, including items other than trading securities, amounted to ¥232,566 million and ¥37,275 million as of March 31, 2019,respectively.

b. Carrying amounts of securities for which fair value cannot be measured reliably(Millions of yen)
Category

As of March 31, 2019

As of March 31, 2020

Held-to-maturity securities－－

Unlisted foreign bonds－－

Others－－－－Stocks of subsidiaries and affiliated companies

16,276

39,682Available-for-sale securities

Policy-reserve-matching bonds

5,445

4,620

Unlisted Japanese stocks (except OTC stocks)

159

159

Unlisted foreign stocks (except OTC stocks)

355

243

Unlisted foreign bonds

－

－

4,929

4,216

21,72144,302OthersTotal

11

c. Fair Value information consisting of those stated in the previous Table a. and Table b. after evaluating foreign exchange and other gains (losses)(Millions of yen)
As of March 31, 2019
Category

Held-to-maturity securities

As of March 31, 2020

Net unrealized gains (losses)

Carrying
amountFair value

Unrealized
gains

Unrealized
lossesNet unrealized gains (losses)

Carrying
amountFair value

Unrealized
gains

Unrealized
losses6,770,008

8,800,847

2,030,838

2,051,389

20,551

7,349,139

9,768,470

2,419,331

2,425,393

6,061

Policy-reserve-matching bonds

680,757

764,282

83,52583,733208

855,937

997,896

141,958

142,397

438

Stocks of subsidiaries and affiliated companies

16,276

16,2804

4－

39,682

39,661

(21)

－

21

Available-for-sale securities

970,299

1,141,169

170,869

173,361

2,491

971,879

1,143,849

171,970

172,626

656

Japanese bonds

867,645

1,024,732

157,086

157,086－

873,327

1,007,815

134,487

134,515

28

Japanese stocks

9,845

19,303

9,458

9,555

96

4,985

9,747

4,762

4,800

37

Foreign securities

87,712

89,867

2,154

4,198

2,043

89,349121,356

32,00632,006－

Bonds

79,56881,811

2,243

3,027

784

87,634

118,584

30,95030,950－Stocks, etc.

8,144

8,055

(88)

1,170

1,259

1,715

2,771

1,056

1,056

－

Other securities

5,095

7,265

2,170

2,521

351

4,216

4,929

712

1,303

590

Monetary claims purchased

－

－

－

－

－

－

－

－

－

－

Certificates of deposit

－

－

－

－

－

－

－

－

－

－

Others

－

－

－

－

－

－

－

－

－

－

8,437,341

10,722,579

2,285,238

2,308,489

23,251

9,216,639

11,949,878

2,733,239

2,740,417

7,177

Japanese bonds

7,858,097

10,129,659

2,271,562

2,277,594

6,032

8,230,025

10,590,705

2,360,679

2,367,208

6,528Japanese stocks

17,832

27,290

9,458

9,555

96

23,301

28,064

4,762

4,800

37

Foreign securities

556,316

558,364

2,047

18,817

16,770959,095

1,326,179

367,084

367,105

21

Bonds

539,883

542,0142,131

17,642

15,511

936,013

1,302,062

366,049

366,049－

Stocks, etc.

16,433

16,349

(84)

1,175

1,259

23,081

24,116

1,034

1,056

21

Other securities

Total

5,095

7,265

2,170

2,521

351

4,216

4,929

712

1,303

590

Monetary claims purchased

－

－

－

－

－

－

－

－

－

－

Certificates of deposit

－

－

－

－

－

－

－

－

－

－

Others

－

－

－

－

－

－

－

－

－

－

(8) Fair Value Information on Money Held in Trust(Millions of yen)
As of March 31, 2019
Category

Money held in trust

As of March 31, 2020

Net unrealized gains (losses)

Balance sheet
amountFair value

269,387

269,387

Unrealized
gains

Unrealized
losses－－－Net unrealized gains (losses)

Balance sheet
amountFair value

40

40

Unrealized
gains

Unrealized
losses－－－Note: The above table includes jointly invested money held in trust, which amounted to ¥40 million as of March 31, 2019 and as of March 31, 2020, respectively.

Money held in trust for investment
Not applicable

Money held in trust for held-to-maturity, policy-reserve-matching and other(Millions of yen)

As of March 31, 2019
Category

Carrying
amountAs of March 31, 2020

Net unrealized gains (losses)
Fair value

Unrealized
gains

Unrealized
lossesCarrying
amountNet unrealized gains (losses)
Fair value

Unrealized
gains

Unrealized
lossesMoney held in trust for held-to-maturity

－

－

－

－

－

－

－

－

－

－

Money held in trust for policy-reserve-matching

－

－

－

－

－

－

－

－

－

－

232,071

269,346

37,27537,275

－

－

－

－

－

－

Other money held in trust

125. Non-consolidated Balance Sheets(Millions of yen)
As of
As of
March 31, 2019 March 31, 2020
AmountAs of
As ofMarch 31, 2019 March 31, 2020

AmountAssets:Cash and deposits
Cash
Deposits
Call loans
Money held in trust
Securities
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Japanese stocks
Foreign securities
Other securities
Loans
Policy loans
Commercial loans
Tangible fixed assets
Land
Buildings
Leased assets
Other tangible fixed assets
Intangible fixed assets
SoftwareDue from reinsurers
Other assets
Other receivable
Prepaid expenses
Accrued income
Money on deposits
Initial margins of futures markets
Variation margins of futures markets
Derivatives
Cash collateral paid for financial instruments
Advance payments
Others
Prepaid pension costs
Deferred tax assets
Reserve for possible loan losses
Reserve for investment losses

82,046－82,046
93,700269,387
9,523,877
7,356,090
448
536,373
49,381
1,262,611
318,971
198,410
198,369
41
91,57762,25928,54420
752
26,352
26,352
1,036
81,15439,287
2,345
21,941
5,580
3,279
72
448
7,410
718
71
2,629
14,248(623)(3,650)157,7091
157,708－40
10,629,972
7,915,466
1,045
616,199
50,127
1,765,943
281,191
208,632
208,069562
93,61964,71527,843408
651
28,62928,6291,205
99,286
41,194
2,556
23,616
6,167
5,097
1,032
18,776
－
767
77
3,271
19,308(652)(3,899)Total Assets

10,380,148

11,237,124

AmountAmountLiabilities:
Policy reserves and others
Reserve for outstanding claims
Policy reserves
Reserve for policyholders' dividends
Due to agencies
Due to reinsurers
Other liabilities
Payables under repurchase agreements
Collateral for securities lending transactions
Accrued income tax
Other payables
Accrued expenses
Unearned revenue
Deposits received
Deposits received for guarantee
Variation margins of futures markets
Derivatives
Cash collateral received for financial instruments
Lease obligations
Asset retirement obligations
Suspense receipt
Reserve for employees' retirement benefits
Reserve under the special laws
Reserve for price fluctuations
Deferred tax liabilities on land revaluation
Total Liabilities

9,310,577
37,6109,268,422
4,544
2,073
5,528
469,820
81,474331,055
13,914
2,975
21,071
798
1,321
4,204
753
8,189
－
22
1,898
2,140
28,00250,10550,105
109
9,866,217

10,004,643
40,403
9,959,832
4,407
2,408
5,344
602,739
268,520
257,580
17,194
2,574
24,338
881
620
4,539
－
1,215
17,990
456
1,968
4,859
29,52852,76852,768109
10,697,541

Net Assets:
Common stock
Capital surplus
Capital reserve
Retained earnings
Legal retained earnings
Other retained earnings
Unappropriated retained earnings
Total shareholders' equity
Net unrealized gains (losses) on available-for-sale securities, net of taxes
Land revaluation, net of taxes
Total valuation and translation adjustments
Total Net Assets
Total Liabilities and Net Assets

70,0005,865
5,865
317,777
40,188277,588
277,588393,642
122,727(2,439)120,288
513,930
10,380,148

70,0005,865
5,865
342,32146,628295,692
295,692
418,186
123,835(2,439)121,396
539,582
11,237,124

13

6. Non-consolidated Statements of Income(Millions of yen)

For the year ended
March 31, 2019
Amount1,464,218
1,136,104
1,132,732
3,372
278,935
166,9370150,733
6,828
8,831
543
4,490
－
6,107
－
13,455－87,944
49,1784,027
43,0462,104
1,384,406
457,252
92,997
13,489131,824
204,351
3,659
10,929704,780
2,433
702,346
0
24,638
1,604
126
34
4,026
13,925
－
329
1,599
2,992
－
146,984
50,75028,655
13,419
6,248
2,402
25
79,812
5,929
63
39
2,175
2,175
－
3,650
2,146
71,73725,328(3,194)
22,13449,602

Ordinary Revenues
Income from insurance premiums
Insurance premiums
Ceded reinsurance commissions
Investment income
Interest income and dividends
Interest income from deposits
Interest income and dividends on securities
Interest income from loans
Income from real estate for rent
Other interest income and dividends
Income from money held in trust, net
Gains on trading securities, net
Gains on sale of securities
Gains on redemption of securities
Foreign exchange gains, net
Other investment income
Gains on separate accounts, net
Other ordinary income
Income for annuity riders
Proceeds from deferred insurance
Other ordinary income
Ordinary Expenses
Insurance claims and other payments
Insurance claims
Annuity payments
Insurance benefits
Surrender payments
Refund to policyholders
Reinsurance premiums
Provision for policy reserves and others
Provision for reserve for outstanding claims
Provision for policy reserves
Interest portion of reserve on policyholders' dividends
Investment expenses
Interest expenses
Losses on trading securities, net
Losses on sale of securities
Losses on valuation of securities
Losses on derivatives, net
Foreign exchange losses, net
Provision for reserve for possible loan losses
Depreciation of real estate for rent and others
Other investment expenses
Losses on separate accounts, net
Operating expenses
Other ordinary expenses
Deferred insurance payments
Taxes
Depreciation and amortization
Provision for reserve for employees' retirement benefits
OthersOrdinary Profit
Extraordinary Losses
Losses on disposal of fixed assets
Impairment losses
Provision for reserve under the special laws
Provision for reserve for price fluctuations
Losses on valuation of shares of subsidiaries
Provision for reserve for investment losses
Provision for Reserve for Policyholders' Dividends
Income Before Income Taxes
Income Taxes—Current
Income Taxes—Deferred
Total Income Taxes
Net Income

14

For the year ended
March 31, 2020
Amount
1,580,117
1,330,860
1,327,857
3,003
193,718
181,8110
164,700
7,049
9,710
350
4,013
156
3,637
4,098
－
1
－
55,537
4,893
48,707
1,936
1,491,396
511,945
98,533
14,644
155,883
228,538
3,722
10,622694,202
2,792
691,4090
68,127
5,059
－
50
6,316
－
6,345
43
1,637
2,683
45,990156,454
60,666
34,79516,011
7,506
2,346
7
88,720
3,272
95
21
2,663
2,663
244
249
2,422
83,02531,333(5,052)
26,281
56,743

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

A

Capital gains
Income from money held in trust, net
Income from trading securities, net
Gains on sale of securities
Gains on derivatives, net
Foreign exchange gains, net

For the year ended March 31, 2019

For the year ended March 31, 2020

97,242

96,16819,562

14,507

－

－

－

149

6,107

3,637

－

4,098

13,455

－

－

6,622

27,847

12,745Losses on money held in trust, net－－

Losses on trading securities, net

144－

Losses on sale of securities

34

50

Losses on valuation of securities

4,026

6,316

Losses on derivatives, net

13,925

－

－

6,345

9,716

32

Other capital gains
Capital losses

Foreign exchange losses, net
Other capital losses
Net capital gains (losses)

B(8,284)

1,762Core profit plus net capital gains (losses)

A+B

88,957

97,930－－Gains from reinsurance－－

Reversal of contingency reserve－－

Reversal of specific reserve for possible loan losses－－

Others

－

－

9,145

9,210

－

－

8,698

9,045

326

46

Provision for reserve for possible loan losses for specific foreign countries－－

Write-off of loans－－

Other one-time gains

Other one-time losses
Losses from reinsurance
Provision for contingency reserve
Provision for specific reserve for possible loan losses

OthersNet other one-time gains (losses)
Ordinary profit

119

118

C

(9,145)(9,210)A+B+C

79,812

88,720For the year ended March 31, 2019

For the year ended March 31, 2020

14,224(2,602)

4,490

4,013

17

7

9,716

(6,622)

－

6,622

－

6,622

(Reference) The breakdown of Others

Core profit
Income gains in income from money held in trust
Interest income and dividends in income from trading securities
Effect of change in the exchange rates related to foreign currency-denominated insurance contracts
Other capital gains
Effect of change in the exchange rates related to foreign currency-denominated insurance contracts
Other capital losses
Impairment losses from investment partnership
Effect of change in the exchange rates related to foreign currency-denominated insurance contracts

9,716

32

－

32

9,716

－

Other one-time gains－－

Other one-time losses

119

118

119

118

Provision of additional policy reserve15

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

As of March 31, 2019

As of March 31, 2020

Bankrupt and quasi-bankrupt loans

02

Doubtful loans－－

Sub-standard loans－－

Sub-total

02[% to total]

[0.0]

[0.0]

Normal loans

461,094

413,529

Total

461,094

413,531

Notes:
1．Bankrupt and quasi-bankrupt loans are loans to borrowers who are subject to bankruptcy, corporate reorganization,
rehabilitation or other similar proceedings and other borrowers in serious financial difficulties.
2．Doubtful loans are loans to borrowers (other than bankrupt and quasi-bankrupt borrowers) with deteriorated financial
condition and results of operations from which it is unlikely 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 on which terms and conditions have been amended in favor of the borrowers(e.g., reduction of the original interest rate, deferral of interest payments, extension of principal repayments or debt waiver)in order to support the borrowers' recovery from financial difficulties (excluding loans described in notes 1. and 2. above andloans on which principal and/or interest are past due for three months or more).
4．Normal loans are loans that do not fall under the classifications for 1. to 3. above and where the borrowers have no financial
or business performance problems.

9. Risk-monitored Loans(Millions of yen, %)Category

As of March 31, 2019
－
0
－
－
0
[0.0]

Bankrupt loans
Non-accrual delinquent loans
Past due loans (3 months or more)
Restructured loans
Total[% to the loan balance]

16

As of March 31, 2020
0
2
－
－
2
[0.0]

10. Solvency Margin Ratio(Millions of yen)

Category

As of March 31, 2019

Total solvency margin(A)

As of March 31, 2020

1,313,033

1,412,772

Common stock, etc.

361,442

390,186

Reserve for price fluctuations

50,10552,768Contingency reserve

98,613

107,659

20

Net unrealized gains (losses) on available-for-sale securities (before tax deductions) and net
deferred gains (losses) on hedging instruments (before tax deductions) x 90% (100% if losses)

153,782

154,773

Net unrealized gains (losses) on real estate x 85% (100% if losses)

50,98065,514

－

－

245

152

Deferred tax assets

92,924

101,924

Excess amount of policy reserves based on Zillmer method

544,688554,097

General reserve for possible loan losses

Amount excluded from deferred tax assets
Unallocated portion of reserve for policyholders' dividends－－

The portion of the excess amount of policy reserves based on Zillmer method andsubordinated debt that is not included in the margin(34,281)(3,331)

Deductible items(5,471)(10,971)(B)

101,371

114,101

Insurance risk

R1

24,57424,498

Third-sector insurance risk

R8

8,526

8,459

Assumed interest rate risk

R2

34,062

36,468Minimum guarantee risk

R7

22,141

23,810Asset management risk

R336,93546,045Business management risk

R4

2,524

2,785

2,590.5%

2,476.3%

Subordinated debt

Total risk

(R1  R8 )2  (R 2  R 3  R 7 )2  R 4

Solvency margin ratioଵ(A)/ ଶ ൈ ሺBሻ ൈ100

Notes: 1. The above figures are calculated based on provisions in Articles 86 and 87 of the Ordinance for Enforcement of the Insurance Business Act of Japan and theMinistry of Finance Public Notice No. 50 (1996).
2. Minimum guarantee risk is calculated based on the standardized approach.

1711. Status of Separate Account Assets(1) Balance of Separate Account Assets(Millions of yen)

Category

As of March 31, 2019

Individual variable life insurance and individual variable annuities

As of March 31, 2020

1,300,701

1,323,948－－

1,300,701

1,323,948

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

(2) Status of Individual variable life insurance and variable annuities(i) Policy amount in forcea.) Individual variable life insurance(Number: Thousand, Amount: Millions of yen)

As of March 31, 2019

As of March 31, 2020

Category
NumberAmountNumberAmountVariable life insurance (whole life type)

836

7,980,475

830

7,601,102

Variable life insurance (limited term type)152

922,336

185

1,183,138

Variable life insurance (term type)12

685,55315

859,808

1,001

9,588,365

1,032

9,644,050

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

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

As of March 31, 2019

As of March 31, 2020

Category
NumberIndividual variable annuities

Amount244

1,483,080

NumberAmount361

2,256,666

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.

18

(ii) Portfolio of separate account assets in individual variable life insurance and individual variable annuities(Millions of yen, %)Category
Cash and deposits, call loans

As of March 31, 2019
AmountAs of March 31, 2020

Composition

AmountComposition

113,749

8.7

77,863

5.9

1,184,185

91.0

1,241,363

93.8

Japanese bonds

147,570

11.3

168,197

12.7

Japanese stocks

20,7701.6

22,063

1.7

Foreign securities

697,94553.7

770,376

58.2

Bonds

86,546

6.7

97,351

7.4

Stocks, etc.

611,39847.0

673,024

50.8

Other securities

317,900

24.4

280,727

21.2

Loans

－

－

－

－

Other

2,766

0.2

4,721

0.4

－

－

－

－

1,300,701

100.0

1,323,948

100.0

Securities

Reserve for possible loan losses
Total

Note: Assets relating to individual variable life insurance and individual variable annuities are jointly invested at Sony Life.

(iii) Net investment gains (losses) of separate account assets in individual variable life insurance andindividual variable annuities(Millions of yen)
Category

For the year ended March 31, 2019 For the year ended March 31, 2020

Interest income and dividends

18,913

23,102

Gains on sale of securities

49,662

47,63050

6Valuation gains on securities

298,688

231,734

Foreign exchange gains, net－－

Gains on derivatives, net－－

Other investment income

4,453

2,776

Losses on sale of securities

10,171

4,922

76

79

268,458

339,913

1,983

5,499

Losses on derivatives, net－－

Other investment expenses

3,134

826

Net investment gains (losses)

87,944(45,990)

Gains on redemption of securities

Losses on redemption of securities
Losses on valuation of securities
Foreign exchange losses, net

Note: Assets relating to individual variable life insurance and individual variable annuities are jointly invested at Sony Life.

19

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

For the year ended March 31, 2020
Ordinary revenues

1,604,755

Ordinary profit

94,381

Profit attributable to owners of the parent

62,899Comprehensive income

64,135(Millions of yen, %)Category

As of March 31, 2020

Total assets

11,796,918

Solvency margin ratio

2,564.5%(2)Scope of consolidation and application of the equity method(Companies)
Consolidated subsidiaries

2

Affiliates not accounted for by the equity method0Affiliates accounted for by the equity method020

(3) Consolidated Balance Sheet(Millions of yen)
As ofMarch 31, 2020

As ofMarch 31, 2020

AmountAssets:Cash and deposits
Money held in trust
Securities
Loans
Tangible fixed assets
Land
Buildings
Leased assets
Other tangible fixed assets
Intangible fixed assets
Software
Goodwill
Due from reinsurers
Other assets
Net defined benefit asset
Deferred tax assets
Reserve for possible loan losses

Total Assets

AmountLiabilities:
Policy reserves and others
Reserve for outstanding claims
Policy reserves
Reserve for policyholders' dividends
Due to agencies
Due to reinsurers
Other liabilities
Net defined benefit liability
Reserve under the special laws
Reserve for price fluctuations
Deferred tax liabilities
Deferred tax liabilities on land revaluation
Total Liabilities

224,211
14,96011,055,749
208,632
93,61964,71527,843408
651
32,20828,6293,579
4,837
140,362
3,391 Net Assets:
19,598 Common stock(652) Capital surplus
Retained earnings
Total shareholders' equity
Net unrealized gains (losses) on available-for-sale securities, net of taxes
Land revaluation, net of taxes
Remeasurements of defined benefit plans, net of taxes
Total accumulated other comprehensive income
Total Net Assets
11,796,918 Total Liabilities and Net Assets

21

10,551,976
40,883
10,506,684
4,407
2,471
5,356
610,032
30,682
52,792
52,792
142
109
11,253,564

70,0005,865
347,230
423,095
123,443(2,439)(745)
120,259543,354
11,796,918

(4) Consolidated Statement of Income(Millions of yen)

For the year ended
March 31, 2020
Ordinary Revenues
Income from insurance premiums
Investment income
Interest income and dividends
Income from money held in trust, net
Gains on trading securities, net
Gains on sale of securities
Gains on derivatives, net
Other investment income
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 reserve for outstanding claims
Provision for policy reserves
Interest portion of reserve for policyholders' dividends
Investment expenses
Interest expenses
Losses on sale of securities
Losses on valuation of securities
Foreign exchange losses, net
Provision for reserve for possible loan losses
Depreciation of real estate for rent and others
Other investment expenses
Losses on separate accounts, net
Operating expenses
Other ordinary expenses
Ordinary Profit
Extraordinary Gains
Gains on step acquisitions
Extraordinary Losses
Losses on disposal of fixed assets
Impairment losses
Provision for reserve under the special laws
Provision for reserve for price fluctuations
Losses on valuation of shares of subsidiaries
Provision for Reserve for Policyholders' Dividends
Income Before Income Taxes
Income Taxes—Current
Income Taxes—Deferred
Total Income Taxes
Net Income
Profit Attributable to Owners of the Parent

22

Amount
1,604,755
1,340,661
208,620
181,812
4,086
317
3,637
18,766
1
55,473
1,510,373
521,198
98,533
15,036
157,074
231,772
18,781
678,7242,444
676,280
091,943
5,064
50
6,316
4,884
43
1,637
2,812
71,132
157,726
60,78094,381
248
248
3,026
95
21
2,665
2,665
244
2,422
89,181
31,334(5,052)
26,28262,89962,899(5)Risk-monitored Loans(Millions of yen, %)Category

As of March 31, 2020

Bankrupt loans0Non-accrual delinquent loans

2

Past due loans (3 months or more)－

Restructured loans

－

Total

2

[% to the loan balance]

[0.0]

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

Category

As of March 31, 2020

Total solvency margin(A)

1,427,464

Common stock, etc.

391,320

Reserve for price fluctuations

52,792

Contingency reserve

110,842

Catastrophe loss reserve－

General reserve for possible loan losses

0

Net unrealized gains (losses) on available-for-sale securities (before tax deductions) and net
deferred gains (losses) on hedging instruments (before tax deductions) x 90% (100% if losses)

155,232

Net unrealized gains (losses) on real estate x 85% (100% if losses)

65,514

Total amount of unrecognized net actuarial gains (losses) and unrecognized past
service cost

(1,034)－

Amount excluded from deferred tax assets
Unallocated portion of reserve for policyholders' dividends

152

Deferred tax assets

101,924

Excess amount of policy reserves based on Zillmer method

554,097－

Subordinated debt
The portion of the excess amount of policy reserves based on Zillmer method
and subordinated debt that is not included in the margin(3,331)

Deductible items

Total risk

(45)
(B)

111,321

Insurance risk

R1

24,564

Ordinary insurance risk

R5－

Major catastrophe risk

R6－

Third-sector insurance risk

R8

8,459

Insurance risk of small-amount short-term insurance providers

R9－

Assumed interest rate risk

R2

36,637

Minimum guarantee risk

R7

24,069Asset management risk

R342,742Business management risk

R4

2,729

ሺ R12+R52+R8+R9)2+(R2+R3+R7)2+R4+R6

Solvency margin ratio
(A)/

ଵ
ൈ ሺBሻ
ଶ

ൈ100

2,564.5%

Notes: 1. The above figures are calculated based on provisions in Articles 86-2 and 88 of the Ordinance for Enforcement of the Insurance Business Act of Japanand Public Notice of Financial Services Agency No. 23 (2011).
2. Minimum guarantee risk is calculated based on the standardized approach.

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