August 12, 2010
Sony Financial Holdings Inc.

Summary Information on Sony Assurance’s Financial Results
for the Three Months Ended June 30, 2010
<Contents>
1. Balance Sheets

P.2

2. Statements of Income

P.3

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

P.4

4. Premiums and Losses Paid by Type of Category

P.5

5. Solvency Margin Ratio

P.61

1. Balance Sheets(Millions of yen)
As of June 30, 2010

As of March 31, 2010

Assets:Cash and deposits

3,286

3,507

Securities

76,86973,234

Tangible fixed assets

362

325

Intangible fixed assets

2,172

1,912

Other assets12,415

13,553

Deferred tax assets

6,271

5,807

101,376

98,34079,47675,851

Reserves for outstanding losses

18,15917,725

Underwriting reserves

61,317

58,125

5,179

5,809

736

565

4,442

5,243

Reserve for employees’ retirement benefits

567

552

Reserve for directors’ retirement benefits

29

28

Reserve for employees’ bonuses

317

589

Reserve for price fluctuations and others

31

27

31

27

85,60282,858

Common stock

20,00020,000Capital surplus

20,00020,000Retained deficits(24,257)(24,543)

Total shareholders' equity

15,742

15,456

Net unrealized gains on other securities,
net of taxes

3125

Total valuation and translation
adjustments

3125

Total Net Assets

15,774

15,482

Total Liabilities and Net Assets

101,376

98,340Total Assets
Liabilities:
Policy reserves

Other liabilities
Income taxes payable
Other liabilities

Reserve for price fluctuations
Total Liabilities
Net Assets:
Shareholders' equity

Valuation and translation adjustments22. Statements of Income
For the three months
ended
June 30, 2009
Ordinary revenues
Underwriting income
Net premiums written
Interest and dividends on deposits of premiums
Investment income
Interest income and dividends(Millions of yen)
For the three months
ended
June 30, 2010

17,491

19,052

17,30818,86817,301

18,860

7

7

170

179

170

186

Gains on sale of securities

7-

Transfer to interest and dividends on deposits of premiums

(7)

(7)

12

4

16,587

18,581

Underwriting expenses

12,646

14,396Net losses paid

8,014

9,266

Loss adjustment expenses

973

1,143

Net commissions and brokerage fees

344

360

Provision for reserve for outstanding losses

263

433

3,050

3,192

Other ordinary income
Ordinary expenses

Provision for underwriting reserves
Investment expenses
Losses on sale of securities
Operating, general and administrative expenses
Other ordinary expenses
Ordinary profit
Extraordinary gains

12-

12-

3,924

4,173

2

11904

470

1

-

Reversal of reserve for price fluctuations and others

1-

Reversal of reserve for price fluctuations

1-

Extraordinary losses

312

Losses on sale or disposal of fixed assets

38Provision for reserve for price fluctuations and others-

3

Provision for reserve for price fluctuations-

3

Income before income taxes

902

458

Income taxes-Current

776

639

Income taxes-Deferred(485)(467)

Total income taxes

291

172

Net income

610

286

3

3. Financial Summary (Year-on-Year Comparison)(Millions of yen)
For the three months
ended
June 30, 2009
Gross direct premiums written(Direct premiums written)

Underwriting income(Net premiums written)

Underwriting expenses

For the three months
ended
June 30, 2010

Change(%)

Change(Amount)

17,253

18,737

1,483

8.6 %

17,253

18,737

1,483

8.6

17,30818,8681,559

9.0

17,301

18,8601,559

9.0

12,646

14,396

1,750

13.8

(Net losses paid)

8,014

9,266

1,252

15.6

(Loss adjustment expenses)

973

1,143

169

17.4

(Net commissions and brokerage fees)

344

360

164.7

170

179

85.0

Investment income(Interest and dividends)

170

186

16

9.7

(

Gains on sale of securities)

7－

(7)

(100.0)12－(12)(100.0)12－(12)(100.0)Operating, general and administrative expenses

3,924

4,173

248

6.3

Operating, general and administrative)
expenses for underwriting

3,906

4,154

248

6.4

Investment expenses((Losses on sale of securities)

Other ordinary income (expenses), net
Ordinary profit(Underwriting profit

Extraordinary gains)

9(6)

(15)

(171.1)

904

470

(433)

(47.9)

755

316

(438)

(58.1)

1－(1)(100.0)

3

12

9

264.2

Extraordinary gains (losses), net

(2)

(12)

(10)

－

Income before income taxes

902

458

(443)

(49.2)

Income taxes-Current

776

639

(137)

(17.7)

Income taxes-Deferred

(485)

(467)

18－

Total income taxes

291

172

(119)

(41.0)Net income

610

286

(324)

(53.1)Net loss ratio

52.0%

55.2%

Net expense ratio

24.6%

23.9%

RatiosExtraordinary losses

Notes

1. Underwriting profit = Underwriting income – (Underwriting expenses + Operating, general and administrative expenses for underwriting) ±Other income and expenses. Other income and expenses are such as corporate taxes associated with compulsory automobile liability
insurance.
2. Net loss ratio = (Net losses paid + Loss adjustment expenses) / Net premiums written x 100
Net expense ratio = (Net commissions and brokerage fees + Operating, general and administrative expenses ) / Net premiums written x 100(Calculation of net expense ratio uses Operating, general and administrative expenses for underwriting related expenses only)44. Premiums and Losses Paid by Type of Policy
Direct Premiums Written
For the three months ended June 30, 2009

(Millions of yen)
For the three months ended June 30, 2010

AmountAmountComposition

YoY Change%%

Composition

YoY Change%%

Fire

71

0.4

5.0

31

0.2

(56.4)

Marine－－－－－－

Personal accident

1,708

9.9

4.8

1,767

9.4

3.4

Voluntary automobile

15,473

89.7

12.6

16,93890.4

9.5－－－－－－

17,253

100.0

11.7

18,737100.08.6

Compulsory automobile liability
Total

Net Premiums Written(Millions of yen)
For the three months ended June 30, 2010

For the three months ended June 30, 2009
AmountComposition(%)

YoY Change(%)%%

AmountComposition

YoY Change%%Fire

30.0(8.0)

10.0(45.3)

Marine20.0(70.4)

30.0

40.7

Personal accident

1,780

10.3

3.5

1,824

9.7

2.5

Voluntary automobile

15,415

89.1

12.6

16,871

89.5

9.4

990.6(5.9)

158

0.8

59.9

17,301

100.0

11.4

18,860100.0

9.0

Compulsory automobile liabilityTotal

Net Losses Paid(Millions of yen)
For the three months ended June 30, 2010

For the three months ended June 30, 2009
AmountYoY Change(%)

Net loss ratio%%

AmountYoY Change(%)

Net loss ratio%%

Fire0(9.0)

74.9

0

49.7

119.0

Marine0(76.8)

32.0

3

260.8

82.2

348

15.0

21.8

378

8.5

23.4

7,538

17.1

54.9

8,732

15.8

58.2

126

8.6

126.9

153

21.5

96.3

8,014

16.8

52.0

9,266

15.6

55.2

Personal accident
Voluntary automobile
Compulsory automobile liability
Total

5

5. Solvency Margin Ratio(Millions of yen)(A) Total solvency margin
Capital or treasury
Reserve for price fluctuations

As of June 30, 2010

As of March 31, 2010

28,34527,444

15,742

15,45631

27

Contingency reserve

66

Catastrophe reserve

12,51911,918Reserve for possible loan losses--

Net unrealized gains on other securities (before subtracting tax effects)

4436

Net unrealized gains on real estate--

Excess refund reserve--

Subordinated debt--

Deductible items--

Other(B) Total risk

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

Ordinary insurance risk（Ｒ1）

--

5,505

5,388

4,715

4,599

Third-sector insurance risk（Ｒ2）00

Assumed interest rate risk（Ｒ3）1010

Asset management risk（Ｒ4）

263

288

Business management risk（Ｒ5）

168

165

Major catastrophe risk（Ｒ6）

614

614

1,029.7 ％1,018.5 ％Solvency margin ratio(C)[(A)／{(B)×1/2}]×100

Note: Calculations and figures included in the chart above apply the methods provided for under Articles 86 and 87 of the Insurance Business Law of Japan enforcement
regulations, as stipulated in 1996 Ministry of Finance Official Notification No. 50. A part of calculations for major catastrophe risk as of June 30, 2010, arecalculated according to simplified methods judged rational by Sony Assurance.

<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-typeinsurance. Non-life insurance companies must also maintain sufficient ability to pay in the event of a major catastrophe or a dramatic drop in the value of the assets theyhold—risk events outside the normal scope of expectations.
Total risk (item (B) in the table above) indicates dangers outside the general scope of expectations. The solvency margin ratio (item (C) in the table above) is an indicatorof an insurer’s ability to pay, calculated as prescribed by the Insurance Business Law of Japan, based on its percentage holdings of capital and other reserves (in otherwords, the total solvency margin: as indicated by (A) above).
“Risk events outside the normal scope of expectations” refers to the total of the amounts represented by the following risks.
：Risks outside the scope of risk incorporated into the rate of accident occurrence (excluding major catastrophe risks)(1) Insurance underwriting risks(Ordinary insurance risks)(Third-sector insurance risks)(2) Assumed interest rate risks：Risks that actual investment yields will fall below the investment yield assumed when calculating premiums(3) Asset management risks：Risks arising from such factors as unexpectedly large fluctuations in prices on owned securities and other assets(4) Business management risks：Unexpected risks to business management other than (1) through (3) above and (5)(5) Major catastrophe risks：Risks arising from major catastrophes (such as the Great Kanto Earthquake and the Ise Bay Typhoon)

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

6