May 14, 2018
Sony Financial Holdings Inc.

Summary Information on Sony Assurance’s Financial Results
for the Year Ended March 31, 2018
<Contents>
1. Balance Sheets

P.2

2. Statements of Income

P.4

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

P.5

4. Premiums and Losses Paid by Type of Policy

P.7

5. Risk-monitored Loans

P.7

6. Securities

P.8

7. Non-consolidated Solvency Margin Ratio

P.9

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

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

As of March 31, 2018

Assets:Cash and deposits

8,951

23,77800Deposits

8,951

23,778

Securities

137,553

145,349

Japanese government bonds

84,45582,422

Japanese local government bonds

29,30834,954

Japanese corporate bonds

21,54424,750Japanese stocks

2,046

3,023

Foreign securities

197

197

Tangible fixed assets

3,399

2,407

Buildings

188

177

Construction in progress

22－

Other tangible fixed assets

3,188

2,229

6,529

6,196

5,833

5,008

Software in progress

144

1,178

Other intangible fixed assets

550

922,125

17,149Accrued premiums

1,270

1,238

Due from reinsurers364

Due from foreign reinsurers

80

15,097

10,432

Accrued income

149

149

Money on deposits

506

493

Suspense payments

5,056

4,831

7,978

9,480

186,537

204,362

Cash

Intangible fixed assets
Software

Other assets

Accounts receivable

Deferred tax assets
Total Assets2

(Millions of yen)
As of March 31, 2017

As of March 31, 2018

Liabilities:
Underwriting reserves

144,514

156,612Reserve for outstanding losses and claims

38,34039,535

Underwriting reserves

106,173117,077

9,877

11,553Due to reinsurers

6855

Due to foreign reinsurers

510

1,746

2,363

Deposits received

65

66

Accounts payable

3,021

3,761

Suspense receipt

4,969

5,295

Reserve for employees’ retirement benefits

1,440

1,667

Reserve for directors’ retirement benefits

36－

Reserve for employees’ bonuses

1,082

1,132

Reserve under the special laws

177

206

Reserve for price fluctuations

177

206

157,128

171,173

20,00020,000Capital reserve

3,389

3,389

Total capital surplus

3,389

3,389

258

610

Other retained earnings

4,549

7,261

Unappropriated retained earnings

4,549

7,261

Total retained earnings

4,808

7,872

Total shareholders’ equity

28,19731,261

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

1,211

1,927

Total valuation and translation adjustments

1,211

1,927

29,40933,189186,537

204,362

Other liabilities

Income taxes payable

Total Liabilities
Net Assets:
Shareholders’ equity
Common stock
Capital surplus

Retained earnings
Earned reserve

Valuation and translation adjustments

Total Net Assets
Total Liabilities and Net Assets

32. Statements of Income(Millions of yen)
For the year ended
March 31, 2017

For the year ended
March 31, 2018

102,333

110,092

100,330

108,316

100,274

108,254

55

62

1,957

1,731

1,327

1,324

685

470

0－

(55)

(62)

45

43

97,336

103,517

Underwriting expenses

70,55374,419(Net losses paid)

50,181

52,482(Loss adjustment expenses)

7,458

8,067

(Net commissions and brokerage fees)

1,646

1,771

798

1,194

10,46910,9030－0－26,76329,096

19

2

4,996

6,574

Extraordinary Gains－－

Extraordinary Losses

4735

Losses on sale or disposal of fixed assets

195

Provision for reserve under the special laws

27

29

Provision for reserve for price fluctuations

2729

Income Before Income Taxes

4,949

6,539

Income Taxes –Current

2,669

3,497

Income Taxes –Deferred(1,235)(1,780)Total Income Taxes

1,434

1,717

Net Income

3,515

4,821

Ordinary Revenues
Underwriting income(Net premiums written)(Interest and dividends on deposits of premiums)
Investment income(Interest income and dividends)(Gains on sale of securities)(Gains on redemption of securities)(Transfer to interest and dividends on deposits of premiums)
Other ordinary income
Ordinary Expenses(Provision for reserve for outstanding losses and claims)(Provision for underwriting reserves)
Investment expenses(Losses on sale of securities)
Operating, general and administrative expenses
Other ordinary expenses
Ordinary Profit4

3. Financial Summary (Year-on-Year Comparison)(Millions of yen)
For the year
ended
March 31, 2017

For the year
ended
March 31, 2018

Change(Amount)

Change(%)

Gross direct premiums written

99,014

107,008

7,993

8.1 %

(Direct premiums written)

99,014

107,008

7,993

8.1

100,330108,316

7,986

8.0

100,274

108,254

7,979

8.0

Underwriting expenses

70,55374,4193,866

5.5(Net losses paid)

50,181

52,4822,301

4.6(Loss adjustment expenses)

7,458

8,067

608

8.2

(Net commissions and brokerage fees)

1,646

1,771

125

7.6

1,957

1,731

(226)

(11.5)

1,327

1,324

(3)

(0.2)

685

470

(215)

(31.4)

0－(0)(100.0)0－(0)(100.0)Operating, general and administrative expenses

26,76329,0962,332

8.7(Operating, general and administrative
expenses related to underwriting)26,706

29,032

2,325

8.7

2641

15

59.0

4,996

6,574

1,577

31.6

3,070

4,863

1,793

58.4

Extraordinary Gains－－－－

Extraordinary Losses

47

35

(12)

(25.6)

Extraordinary gains (losses), net(47)

(35)

12

－

Income Before Income Taxes

4,949

6,539

1,589

32.1

Income Taxes - Current

2,669

3,497

828

31.0

Income Taxes - Deferred(1,235)(1,780)(545)－

Total Income Taxes

1,434

1,717

282

19.7

Net Income

3,515

4,821

1,306

37.2

Net loss ratio

57.5%

55.9%

Net expense ratio

28.3%

28.5%

Yield on investments (income basis)

0.95%

0.85%

Yield on investments (realized basis)

1.44%

1.15%

Underwriting income(Net premiums written)

Ordinary Income (expenses)

Investment income(Interest income and dividends)(Gains on sale of securities)
Investment expenses(Losses on sale of securities)

Other ordinary income, net
Ordinary profit(Underwriting profit)
Extraordinary
gains (losses)

Ratios(Reference)
Yield on investments (market value basis) : 0.32% for the year ended March 31, 2017 and 1.77% for the year ended March 31, 2018.
Notes:
1. Underwriting profit = Underwriting income – (Underwriting expenses + Operating, general and administrative expenses
related to underwriting) ± Other income (expenses). Other income (expenses) is the amount equivalent to the corporate
income taxes for compulsory automobile liability insurance, etc.
2. Calculation method for yield on investments is described in separate attachments

5

Attachment

Calculation method for yield on investments
1. Yield on investments (income basis)
The results of investment in assets are indicated as income revenues (interest income and dividends).
Interest income and dividends on investment assets is the numerator, and acquisition cost is the denominator.
• Numerator: Interest income and dividends• Denominator: Average balance of either acquisition cost or amortized cost
2. Yield on investments (realized basis)
The results of investment in assets are indicated as the contribution to net income (loss) for the period(statements of income).
Realized profit and loss is the numerator, and acquisition cost is the denominator.
• Numerator: Investment income + Interest and dividends on deposits of premiums – Investment expenses• Denominator: Average balance of either acquisition cost or amortized cost
3. (Reference) Yield on investments (market value basis)
An indicator of investment efficiency based on market value. Realized profit and loss plus net unrealized gains is
the numerator, and market value is the denominator.
• Numerator = (Investment income + Interest and dividends on deposits of premiums – Investment expenses)+ (Net unrealized gains at end of period* – Net unrealized gains at end of previous period*)• Denominator =Average balance according to the acquisition cost or amortized cost
+ Net unrealized gains on other securities at end of previous period**Amounts before tax deductions

64. Premiums and Losses Paid by Type of Policy(Millions of yen)

Direct Premiums Written
For the year ended
March 31, 2017
AmountFire

245

MarineFor the year ended
March 31, 2018

Composition

YoY Change%%0.2(29.6)

Amount206

Composition

YoY Change%%0.2(15.9)－－－－－－

Personal accident

8,767

8.9

1.0

8,679

8.1(1.0)

Voluntary automobile

90,001

90.9

5.5

98,12391.79.0－－－－－－

99,014100.0

5.0

107,008

100.0

8.1

Compulsory automobile liability
Total(Millions of yen)

Net Premiums Written
For the year ended
March 31, 2017
Amount

For the year ended
March 31, 2018

Composition

YoY Change%%AmountComposition

YoY Change%%

Fire

240.0

(43.9)

160.0(34.4)

Marine(2)(0.0)(105.5)00.0－

Personal accident

9,044

9.0

1.0

8,887

8.2

(1.7)

Voluntary automobile

89,74689.5

5.4

97,88090.4

9.1

Compulsory automobile liability

1,460

1.5

5.5

1,469

1.40.6100,274

100.0

4.9

108,254

100.0

8.0

Total

(Millions of yen)

Net Losses Paid
For the year ended
March 31, 2017
Amount

For the year ended
March 31, 2018

YoY Change

Net loss ratio%%

AmountYoY Change

Net loss ratio

%

%

Fire

6298.1117.5

6(1.4)

247.1

Marine(6)(114.9)

－2－

308.8

Personal accident

2,615

5.8

32.0

2,692

2.9

33.7

Voluntary automobile

46,263

4.4

59.5

48,4644.8

57.4

Compulsory automobile liability
Total

1,301

2.5

89.1

1,316

1.1

89.6

50,181

4.3

57.5

52,4824.655.95. Risk-monitored Loans
Not applicable7

6. Securities(1) Trading-purpose Securities
Not applicable(Millions of yen)(2) Held-to-maturity Securities
As of March 31, 2017
Balance sheet
amountFair value

Japanese bonds(including JGBs)

71,765

Foreign securities

Subtotal
Japanese bonds
Fair value is lower than(including JGBs)
balance sheet amount
Subtotal
Total

Fair value is higher thanbalance sheet amount(3) Available-for-sale Securities

Japanese bonds(including JGBs)

Balance sheet amount ishigher than acquisition cost Japanese stock

Subtotal
Japanese bondsBalance sheet amount is(including JGBs)
lower than acquisition cost
Subtotal
Total

As of March 31, 2018

Difference

Balance sheet
amountFair value

Difference

87,81016,04574,38391,556

17,172

197

215

18

197

211

13

71,962

88,026

16,06374,581

91,767

17,185

3,873

3,424

(449)

4,496

4,173

(323)

3,873
75,836

3,424
91,451(449)
15,614

4,496
79,0784,173
95,940(323)
16,862(Millions of yen)
As of March 31, 2017
As of March 31, 2018
Balance sheet Acquisition
Balance sheet Acquisition
Difference
Difference
amountamountcostcost
45,082

44,900181

40,24540,151

93

2,046

529

1,517

3,023

412

2,610

47,12945,4301,698

43,26840,564

2,704

14,587

14,603(15)

23,002

23,029(27)

14,58761,716

14,60360,033(15)
1,683

23,002
66,27023,02963,593(27)2,677(4) Available-for-sale Securities Sold during the Fiscal YearFor the year ended March 31, 2017

Japanese bonds (including JGBs)
Japanese stocks
Total(Millions of yen)
For the year ended March 31, 2018

Amount ofsales

Total gains
on salesTotal losses
on salesAmount ofsalesTotal gains
on salesTotal losses
on sales

1,885
937
2,823

6679
685

0－
0

4,622
573
5,195

14455
470

－
－－

8

7. Non-consolidated Solvency Margin Ratio(Millions of yen)
As of March 31, 2017(A) Total non-consolidated solvency margin
Capital or treasury, etc.
Reserve for price fluctuations

As of March 31, 2018

46,72454,244

26,43928,849

177

206

Contingency reserve

101

109

Catastrophe reserve

17,542

20,970

－－

1,514

2,409

Net unrealized gains on real estate－－

Excess refund reserve－－

Subordinated debt－－

The portion of the excess refund reserve and subordinated debt that is notincluded in the margin－－

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

Deductible items
Others(B) Total non-consolidated risk

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

－

－

948

1,698

12,786

13,871

11,37012,395

Ordinary insurance risk

(R1)

Third-sector insurance risk

(R2)

－-

Assumed interest rate risk

(R3)

105

114

Asset management risk

(R4)

1,431

1,712

Business management risk

(R5)278305Major catastrophe risk(C) Non-consolidated solvency margin ratio[(A)／{(B)×1/2}]×100

(R6)

1,033

1,036

730.8 %

782.1 %Note:

The above figures were calculated based on the provisions in Articles 86 and 87 of the Ordinance for Enforcement of the Insurance Business Act of Japanand the Ministry of Finance Public Notice No. 50 of 1996.

<Non-consolidated Solvency Margin Ratio>
Non-life insurance companies maintain reserves to ensure their ability to pay claims when accidents occur and return contracted amounts at maturity
on savings-type insurance. Non-life insurance companies must also maintain sufficient ability to cover against risk events which exceed
its normal estimates, i.e. occurrence of a major catastrophe or a dramatic drop in the value of the assets they hold.
Total risk (item (B) in the table) indicates risk events which exceed the normal estimates. The non-consolidated solvency margin ratio(item (C) in the table) is an indicator of an insurer’s ability to pay, calculated as prescribed by the Insurance Business Act of Japan, basedon its percentage holdings of capital and other reserves (in other words, the total non-consolidated solvency margin, as indicated by (A))

“Risk events which exceed the normal estimates” refers to the total of the amounts represented by the following risks:(1) Insurance underwriting risk
: Risk which exceeds the normal estimates for the rate of accident occurrence(Ordinary insurance risk)(excluding major catastrophe risk)(Third-sector insurance risk)(2) Assumed interest rate risk
: Risk that actual investment yields will fall below
the investment yield assumed when calculating premiums(3) Asset management risk
: Risk arising from such factors as unexpectedly large fluctuations in prices
on held securities and other assets(4) Business management risk
: Unexpected risk to business management other than (1) through (3) above and (5)(5) Major catastrophe risk

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

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

9