November 14, 2016
Sony Financial Holdings Inc.

Summary Information on Sony Life’s Financial Results
for the Six Months Ended September 30, 2016
<Contents>
1. Key Performance Results(1) Policy Amount in Force and New Policy Amount

P. 2(2) Annualized Premiums

P. 2(3) Major P/L Items(4) Total Assets

P. 3
P. 3

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

P. 4(2) Investment Policy

P. 4(3) Results of Investment

P. 4

3. Status of Investment Assets (General Account)(1) Portfolio of General Account Assets

P. 5(2) Changes in General Account Assets by Category

P. 5(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. 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(Reference) Consolidated Solvency Margin Ratio

P. 14
P. 15

10. Status of Separate Account Assets(1) Balance of Separate Account Assets

P. 16(2) Policy Amount in Force (Separate Account)

P. 16

1

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, 2015

As of March 31, 2016

As of September 30, 2016

Category

Individual life insurance

NumberAmount6,732

414,215

Amount6,880

Number

422,937% change fromMarch 31, 2016

Amount

104.3

102.0

431,645% YoYchange

7,019

% YoY
change% change fromMarch 31, 2016

104.2

102.1

141

7,214

166

8,560

184

130.0

110.7

9,499

131.7

111.0

6,874

421,430

7,046

431,498

7,203

104.8

102.2

441,144

104.7

102.2

Individual annuities
Subtotal

NumberGroup life insurance-

15,397-

15,993---

17,268

112.1

108.0

Group annuities

-

139

-

130

-

-

-

122

87.9

93.9

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, 2015

For the six months ended September 30, 2016

Category
NumberAmount303

24,802

Individual life insurance
Individual annuities
Subtotal

New policies

Increase fromconversion

24,802-

NumberAmount% YoYchange

260

86.0

% YoY
change23,44094.5

New policies

Increase fromconversion

23,440

-

23

1,347

1,347

-

19

82.5

1,049

77.9

1,049

-

327

26,15026,150

-

280

85.7

24,49093.7

24,490

-

8

8

16

193.6

16

Group life insurance-Group annuities

-

-

-

-

-

-

-

-

-

-

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

(2) Annualized Premiums
Policy amount in force
Category(Millions of yen, %)As of
September 30, 2015

As ofMarch 31, 2016

As of
September 30, 2016

% YoY change% change fromMarch 31, 2016

Individual life insurance

734,236

751,820

767,484

104.5

102.1

Individual annuities

24,90029,49532,197

129.3

109.2

Total

759,136

781,315

799,681

105.3

102.4

176,122

179,707

184,055

104.5

102.4

Of which, medical protection, living benefit
protection and other products

New policies(Millions of yen, %)Category
Individual life insurance
Individual annuities

For the six months ended
September 30, 2015

For the six months ended
September 30, 2016

% YoY change

35,625

91.6

38,894
4,159

3,133

75.4

Total

43,05338,75990.0

Of which, medical protection, living benefit
protection and other products

7,383

8,101

109.7

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 single premium policies, premiums are divided by the number of coverage years.)
2. “Medical protection, living benefit protection and other products” indicates the portion of annualized premiums for medical protection benefits (hospitalization benefits, surgicalprocedure benefits, etc.) and products with living benefit protection (benefits for specific illness, nursing care benefits, etc.).

2

(3) Major P/L Items
Category(Millions of yen, %)For the six months ended
September 30, 2015

For the six months ended
September 30, 2016

% YoY
ChangeIncome from insurance premiums

508,798

477,426

93.8

Investment income

84,46180,47795.3

Insurance claims and other payments

173,103

163,350

94.4

Investment expenses

35,67440,604113.8(4) Total Assets(Millions of yen, %)Category

As of March 31, 2016

Total assets

8,035,408

3

As of September 30, 2016
8,365,201% Change fromMarch 31, 2016
104.1

2. Status of Investment Assets (General Account)(1) Investment Environment
During the six months ended September 30, 2016, Japanese economic performance was weak, affected by such factors as yen appreciation anddeceleration in emerging markets. Real GDP growth (2nd preliminary figures1) was up 0.2% (seasonally adjusted annualized rate of 0.7%) during
the April–June quarter, exhibiting slight positive growth compared with the previous quarter. Looking at individual demand factors, housing
investment was up 5.0% and public investment was up 2.6%, but growth in personal consumption was low, at +0.1%, affected by unfavorable
weather. Against the backdrop of yen appreciation and other factors, a slowdown in exports was a negative contributor. Nominal GDP growth forthe quarter was up 0.3% compared with the previous quarter (seasonally adjusted annualized rate of 1.3%). Real GDP growth for theJuly–September quarter2 is expected to remain lackluster, due to an absence of factors supporting economic growth.
The Japanese bond market moved within a wide range. Buying operations by the Bank of Japan (BOJ) caused long-term interest rates toremain low and flat. However, reports in June that concentrated on the United Kingdom’s decision to exit the European Union prompted anincreasingly uncertain outlook. In response, yields on 10-year Japanese government bonds (JGBs), an indicator of long-term interest rates, fell
from negative 0.029% (closing price) on March 31 to negative 0.287% (closing price) at one point in July. On the one hand at a policy meeting at
the end of July, the BOJ countered market expectations with a decision to forego a further reduction in negative interest rates. This decision
prompted a significant rebound in long-term interest rates, which remained flat thereafter. As of September 30, yields on 10-year JGBs were
negative 0.089%, slightly below their level on March 31.
Stock market performance was generally flat, moving within a wide range. At the beginning of the period, such positive factors as rising
crude oil prices and steady overseas stock markets pushed up stock prices in Japan. However, reports in June that concentrated on the United
Kingdom’s decision to exit the European Union plus risk hedging trends prompted a sharp decline in the Nikkei Stock Average, which fell below¥15,000 at one point. In July, a resounding victory by the Liberal Democratic Party of Japan and the Komeito in the Upper House election andincreased share purchases by the BOJ pushed stock prices back up. At the same time, favorable U.S. employment data had a positive impact onworldwide high stock prices. As of September 30, the Nikkei average was ¥16,449.84, down slightly from the March 31 figure of ¥16,758.67.
On foreign exchange markets, the yen appreciated against the U.S. dollar. Rising crude oil prices and mounting anticipation about a U.S.
interest rate hike led temporarily to yen depreciation, but low commodity prices and the BOJ’s decision to forego a further reduction in alreadynegative interest rates prompted dollar depreciation/yen appreciation from ¥112.57 against the U.S. dollar on March 31 to ¥101.35 on September
30. In yen/euro trading, growing uncertainty about the Eurozone economy caused the euro to depreciate against the yen. As of September 30, theyen was trading at ¥113.92 against the euro, compared with ¥128.11 on March 31.
(2) Investment Policy
Our investment policy is based on asset liability management (ALM), a strategy stemming from an understanding of the characteristics of
insurance liabilities and prioritizing investments in assets that have corresponding characteristics. Specifically, as life insurance policies represent
long-term liabilities, we invest primarily in ultralong-term Japanese government and corporate bonds that have a long term remaining until
maturity. This approach allows us to appropriately control the risks associated with interest rate fluctuations on insurance liabilities. Meanwhile,
we limit our investments in risky assets such as equities.

(3) Results of Investment
As of September 30, 2016, general account assets totaled ¥7,508.5 billion, up 4.5%, or ¥323.4 billion, from previous fiscal year ended March 31,
2016. Within general account assets, Japanese government and corporate bond investment totaled ¥6,586.5 billion (accounting for 87.7% of total
general account assets), foreign government and corporate bonds ¥164.0 billion (2.2%), Japanese stocks ¥33.0 billion (0.4%), monetary trusts¥279.5 billion (3.7%), policy loans ¥175.9 billion (2.3%), real estate ¥118.1 billion (1.6%), and cash and cash deposits and call loans ¥44.4billion(0.6%).

1 Announced on September 8, 2016
2 Initial preliminary report expected on November 14, 20164

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

As of March 31, 2016
Amount52,551

Japanese government and corporate 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 September 30, 2016

% of total

Amount44,4870.7--

280,973
6,479,336
6,351,176
33,364
93,14070,13423,005
1,654
171,649
115,816
85,031(272)
7,185,084
91,817

3.9
90.2
88.4
0.5
1.3
1.0
0.3
0.0
2.4
1.6
1.2
(0.0)
100.0
1.3

% of total
0.6
-

-

86,069(275)
7,508,562
184,002

3.7
90.6
87.7
0.4
2.4
2.2
0.3
0.0
2.3
1.6
1.1
(0.0)
100.0
2.5

279,527
6,804,589
6,586,564
33,078183,373
164,063
19,3101,573
175,964
118,198

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

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

For the six months ended
September 30, 2015

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

For the six months ended
September 30, 2016
97,180(24,093)371,291
420,547(8,467)(40,065)(39,503)
(561)
(722)
5,462
(890)
2,420
2,898
(13)
454,255
3,207

Japanese government and corporate 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

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

5(8,064)(1,445)325,253
235,388(286)
90,23393,928(3,695)
(81)
4,315
2,382
1,038
(2)
323,477
92,184

(3) Investment Income(Millions of yen)

Category

For the six months ended
September 30, 2015

Interest income and dividends

For the six months ended
September 30, 2016
69,846

Interest income from deposits

72,2910

0Interest income and dividends from securities

61,62163,635Interest income from loans

3,056

3,171

Rent revenue from real estate

5,135

5,430

33

53

Other interest income and dividends
Gains on securities under proprietary accounts-

Income from monetary trusts, net

-

6,188

Income from trading securities, net

2,248
-

Gains on sale of securities
Gains on sale of Japanese bonds (including JGBs)

56

6,591

1,301

5,936

14

Gains on sale of Japanese stocks, etc.

579

Gains on sale of foreign securities

75

Other
Gains on redemption of securities
Gains on derivatives, net

1,676

Foreign exchange gains, net

146

Reversal of reserve for possible loan losses

1,287
-

-

-

4,577
-

-

Other investment income
Total

-

11

1

84,46180,477(4) Investment Expenses(Millions of yen)

Category

For the six months ended
September 30, 2015

Interest expenses

For the six months ended
September 30, 201624

Losses on securities under proprietary accounts

15-

Losses on monetary trusts, net--

Losses on trading securities, net-

384

Losses on sale of securities--

Losses on sale of Japanese bonds (including JGBs)--

Losses on sale of Japanese stocks, etc.

--

Losses on sale of foreign securities

-

-

Other

-

-

Devaluation losses on securities--

Devaluation losses on Japanese bonds (including JGBs)--

Devaluation losses on Japanese stocks, etc.

--

Devaluation losses on foreign securities

-

-

Other

-

-

Losses on redemption of securities-

Losses on derivatives, net-

Foreign exchange losses-

Provision for reserve for possible loan losses

13

Write-off of loans

23
5,023
2

-

Depreciation of real estate for rent and others
Other investment expenses
Total

6

-

967

946

2,327

2,458

3,717

8,470

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

As of March 31, 2016
Category
Balance sheet amount

Trading-purpose securities

2,215

As of September 30, 2016

Net valuation
gains (losses)
recorded inincomeBalance sheet amount

Net valuation
gains (losses)
recorded inincome

153

1,018

(170)

Note: The above table includes trading-purpose securities included 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 March 31, 2016
Category

Held-to-maturity securities
Policy-reserve-matching bonds

As of September 30, 2016

Net unrealized gains (losses)
Carrying
amountFair value

5,383,938

7,410,168

2,026,230

2,026,230

251,260

292,566

41,30541,306

Stocks of subsidiaries andaffiliated companies-

Net unrealized gains (losses)

Unrealized Unrealized
gains
losses--0-887,973

1,091,602

203,629

203,739

Japanese government andcorporate bonds

854,339

1,040,351

186,011

186,011

Japanese stocks

13,62525,664

12,03912,04910Foreign securities

19,842

25,279

5,436

5,536

99

19,842

Stocks, etc.
Other securities

25,279
-

165

5,436
-

307

109
-

5,536
-

99
-

142

Fair value

5,709,389

7,877,713

270,359

316,701-

Available-for-sale securities

Bonds

Carrying
amount-2,168,323

2,177,719

9,395

46,342

46,977

634

-

-

-

-

1,075,733

197,580

198,142

853,472

1,040,029

186,557

186,557

13,62524,582

10,956

11,02063

10,88910,821

(68)

430

498

(68)

430

10,889-Unrealized
losses878,153-

142

Unrealized
gains

10,821
-

165

299

134

562
-

498
-

-

134

-

Monetary claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

-

Total

6,523,172

8,794,337

2,271,165

2,271,276

110

6,857,901

9,270,148

2,412,246

2,422,838

10,592

Japanese government andcorporate bonds

6,444,682

8,689,521

2,244,838

2,244,838

0

6,679,9789,068,698

2,388,719

2,397,778

9,058

Japanese stocks

13,62525,664

12,03912,04910

13,62524,582

10,956

11,02063Foreign securities

64,69878,84414,146

14,245

99

164,131

176,567

12,436

13,906

1,469

Bonds

64,698Stocks, etc.
Other securities

78,844-165

14,146-307

14,245
-

99
-

142

142

164,131-

176,567-

165

12,436-299

13,906
-

134

1,469
-

-

134

-

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 Act of Japan.
2. Carrying amount and net unrealized gains (losses) on monetary trusts, including items other than trading-purpose securities, amounted to ¥232,361 million and¥47,610 million, respectively.

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

As of March 31, 2016

As of September 30, 2016

Held-to-maturity securities--

Unlisted foreign bonds--

Others---

Policy-reserve-matching bonds-

Stocks of subsidiaries and affiliated companies

13,267

14,017Available-for-sale securities

12,301

11,090Unlisted domestic stocks (except OTC stocks)

149

159

Unlisted foreign stocks (except OTC stocks)

439

Unlisted foreign bonds
Others
Total

694
-

-

11,712

10,23625,56925,108c. 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, 2016
Category

Held-to-maturity securities

As of September 30, 2016

Net unrealized gains (losses)

Carrying
amountFair value

Unrealized
gains

Unrealized
losses5,383,938

7,410,168

2,026,230

2,026,230

Policy-reserve-matching bonds

251,260

292,566

41,30541,306

Stocks of subsidiaries and affiliated companies

13,267

13,267Available-for-sale securities

900,274

1,109,405

209,130

209,792

Japanese government and corporate bonds

854,339

1,040,351

186,011

186,011

Japanese stocks

13,77525,814

12,03912,049Foreign securities
Bonds

0

-

-

661
10

Net unrealized gains (losses)

Carrying
amountFair value

5,709,389

7,877,713

270,359

316,701

14,017

14,017889,243

1,089,777

200,533

201,688853,472

1,040,029

186,557

186,557

13,78524,742

10,956

11,020

Unrealized
gains

Unrealized
losses2,168,323

2,177,719

9,395

46,342

46,977

634

-

-

1,153
63

20,281

27,271

6,989

7,089

99

11,584

12,440

856

1,354

498

19,842

25,279

5,436

5,536

99

10,88910,821

(68)

430

498

Stocks, etc.

439

1,992

1,552

1,552

Other securities

11,877

15,967

4,090

4,641

551

694

1,618

924

924

10,401

12,564

2,162

2,756

593

-

Monetary claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

662

6,883,009

9,298,209

2,415,199

2,426,385

11,185
9,058

Total

6,548,741

8,825,407

2,276,666

2,277,328

Japanese government and corporate bonds-

6,444,682

8,689,521

2,244,838

2,244,838

0

6,679,9789,068,698

2,388,719

2,397,778

Japanese stocks

20,34332,382

12,03912,04910

21,10332,06010,956

11,02063Foreign securities

71,83787,536

15,69915,79899

171,525

184,886

13,36014,830

1,469

Bonds

64,69878,84414,146

14,245

99

164,131

176,567

12,436

13,906

1,469

Stocks, etc.

7,139

8,692

1,552

1,552

7,394

8,318

924

924

Other securities

11,877

15,967

4,090

4,641

10,401

12,564

2,162

2,756

593

551

-

Monetary claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

-

8

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

As of March 31, 2016
Category

Monetary trusts

As of September 30, 2016

Net unrealized gains (losses)

Balancesheet amount

Fair value

280,973

280,973

Unrealized Unrealized
gains
losses---Balance sheet
Fair value
amount279,527

Net unrealized gains (losses)
Unrealized Unrealized
gains
losses279,527---

Note: The above table includes ¥50 million of jointly invested monetary trusts.

Monetary trusts for investment(Millions of yen)

As of September 30, 2016

As of March 31, 2016
Category

Net valuation gains (losses)
recorded in income

Balance sheet amount

Monetary trusts for investment-

Net valuation gains (losses)
recorded in income

Balance sheet amount---

Monetary trusts for held-to-maturity and policy-reserve-matching and other monetary trusts(Millions of yen)

As of March 31, 2016
Category

As of September 30, 2016

Net unrealized gains (losses)
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

-

-

-

-

-

-

-

-

-

-

Other monetary trusts

232,491

280,922

48,431

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

948,431-

231,866

279,476

47,61047,610-4. Non-consolidated Balance Sheets(Millions of yen)
As of
As of
Mar. 31, 2016 Sep. 30, 2016
AmountAs of
As of
Mar. 31, 2016 Sep. 30, 2016

AmountAssets:Cash and deposits
Cash
Deposits
Call loans
Monetary trusts
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
Construction in progress
Other tangible fixed assets
Intangible fixed assets
Software
Other intangible fixed assets
Due from reinsurers
Other assets
Other receivable
Prepaid expenses
Accrued income
Money on deposits
Initial margins of futures markets
Variation margins of futures markets
Derivative
Advance payments
Others
Prepaid pension costs
Reserve for possible loan losses

18,394
2
18,392
88,200280,973
7,273,361
6,382,481
1,836
125,101
83,411
471,973
208,556
171,649
171,649
116,256
83,007
32,7771231427
19,171
19,1629298
64,99833,407
1,216
17,205
5,313
4,797
979
1,640
359
77
2,377
(272)

14,657
4
14,65288,500279,527
7,601,023
6,491,424
1,824
249,293
82,147564,378
211,955
175,964
175,951
13
119,160
83,00735,191
11
950
17,953
17,9449989
65,27331,026
1,957
16,724
5,332
6,186
26
3,310
635
71
2,426
(275)

Total Assets

8,035,408

8,365,201

AmountAmountLiabilities:
Policy reserves and others
Reserve for outstanding claims
Policy reserves
Reserve for policyholders' dividends
Due to agencies
Due to reinsurers
Other liabilities
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
Derivative liabilities
Lease obligations
Asset retirement obligations
Suspense receipt
Reserve for employees' retirement benefits
Reserve for directors' retirement benefits
Reserve under the special laws
Reserve for price fluctuations
Deferred tax liabilities
Deferred tax liabilities on land revaluation

7,371,174
29,635
7,336,533
5,006
2,455
621
104,996
62,804
8,998
2,765
18,920
995
1,594
5,186
168
711
13
679
2,157
21,944
121
44,26044,2607,151
488

7,615,482
29,396
7,580,650
5,434
1,972
2,394
187,611
146,927
10,365943
17,414
978
549
5,414
377
677
12
2,133
1,816
23,395110
45,04045,0403,154
488

Total Liabilities

7,553,212

7,879,649

Net Assets:
Common stock
Capital surplus
Capital reserve
Retained earnings
Earned reserve
Other retained earnings
Unappropriated retained earnings
Total shareholders' equity
Net unrealized gains (losses) on other 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
257,175
26,118231,056
231,056
333,040
150,621(1,465)
149,155
482,195
8,035,408

70,0005,865
5,865
266,756
28,778
237,978
237,978
342,621
144,395(1,465)
142,930
485,552
8,365,20110

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

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 from securities
Interest income from loans
Rent revenue from real estate
Other interest income and dividends
Income from monetary trusts, net
Gains on trading securities, net
Gains on sale of securities
Gains on derivatives, net
Foreign exchange gains, net
Other investment income
Other ordinary income
Income for annuity riders
Income for deferred payment of claims
Reversal of reserves for outstanding claims
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 on policyholders' dividend reserve
Investment expenses
Interest expenses
Losses on trading securities, net
Losses on redemption 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
Payments of deferred claims
Taxes
Depreciation and amortization
Provision for reserve for employees' retirement benefits
Provision for reserve for directors' retirement benefits
OthersOrdinary Profit
Extraordinary Gains
Reversal of reserve for investment loss
Extraordinary Losses
Losses on disposal of fixed assets
Impairment losses
Provision for reserve under the special laws
Provision for reserve for price fluctuations
Valuation loss on stocks of affiliated companies
Provision for Reserve for Policyholders' Dividends
Income Before Income Taxes
Income Taxes -Current
Income Taxes -Deferred
Total Income Taxes
Net Income

For the six months ended
September 30, 2015

For the six months ended
September 30, 2016

AmountAmount596,372
508,798
508,344453
84,461
69,846
061,621
3,056
5,135
33
6,188
6,591
1,676
146
11
3,112
725
1,202
1,184
573,485
173,103
41,583
5,283
23,73697,433
4,083
982
287,219930
286,287
1
35,674
24
384
13
967
2,327
31,956
65,612
11,876
1,648
6,079
2,626
1,506
15
0
22,886
6,352
6,352
7,363
2
0
678
678
6,682
647
21,228
8,789(2,424)
6,364
14,863

11564,426
477,426
476,586840
80,477
72,2910
63,635
3,171
5,430
53
2,248
56
1,301
4,577
1
6,522
1,523
1,974
238
2,785
531,204
163,350
42,443
5,617
27,837
83,1391,607
2,705
244,117244,117040,604
15
23
5,023
2
946
2,458
32,13470,056
13,075
2,312
6,137
2,670
1,904
13
33,221
830
49
0
780
780
682
31,70910,452(1,568)
8,883
22,825

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

For the six months ended
September 30, 2015
Core profit

A

Capital gains
Income from monetary trusts, net

For the six months ended
September 30, 2016

14,46030,687

12,246

11,796

3,631-

Income from trading securities, net-

49

Gains on sale of securities

6,591

1,301

Gains on derivatives, net

1,676

4,577

Foreign exchange gains, net

146-

Other capital gains

199

5,868

518

5,688

Capital losses
Losses on monetary trusts, net-

Losses on trading securities, net

-

419

-

Losses on sale of securities--

Devaluation losses on securities--

Losses on derivatives, net--

Foreign exchange losses, net

-

5,023

99

665

Other capital losses
Net capital gains (losses)

B

11,7286,108Core profit plus net capital gains (losses)

A+B

26,18836,795--

Gains from reinsurance--

Reversal of contingency reserve--

Reversal of specific reserve for possible loan losses--

Others--Other one-time gains

Other one-time losses

3,301

Losses from reinsurance

3,574
-

-

3,178

3,471

13

1

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

Write-off of loans

-

-

109

101

C

(3,301)(3,574)

A+B+C

22,88633,221

Provision for contingency reserve
Provision for specific reserve for possible loan losses

OthersNet other one-time gains (losses)
Ordinary profit

Notes:
1. Core profit for the six months ended September 30, 2016 (A) includes income gains of ¥2,248 million in income from monetary trusts along with interest income and dividendsof ¥6 million in income from trading securities, net. Other capital gains include the reversal of policy reserves and others of ¥5,868 million for currency market fluctuationsof products dominated in foreign currencies; other capital losses include impairment losses of ¥665 million from investment partnership;"Others" of other one-time losses included provision of additional policy reserve of ¥101 million.
2. Core profit for the six months ended September 30, 2015 (A) includes income gains of ¥2,556 million in income from monetary trusts along with interest income and dividendsof ¥35 million in income from trading securities, net. Other capital gains include the reversal of policy reserves and others of ¥199 million for currency market fluctuationsof products dominated in foreign currencies; other capital losses include impairment losses of ¥99 million from investment partnership;"Others" of other one-time losses included provision of additional policy reserve of ¥109 million.

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

As of March 31, 2016

As of September 30, 2016

Bankrupt and quasi-bankrupt loans--

Doubtful loans--

Sub-standard loans--

Subtotal[% to total]
Normal loans
Total

-

-

[-]

[-]

223,255

291,678

223,255

291,678

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 ofoperations 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 interest 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 ofinterest 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 and loans on which principal and/or interest are past 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

As of March 31, 2016

Total solvency margin(A)

As of September 30, 2016

1,169,875

1,224,279

Common stock, etc.

319,740

341,521

Reserve for price fluctuations

44,26045,040Contingency reserve

75,16678,6370

1

Net unrealized gains on other securities (before tax deductions) and net deferredgains or losses on hedging instruments (before tax deductions) × 90% (100% if
losses)188,217

180,480

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

20,778

20,778General reserve for possible loan losses

Amount excluded from deferred tax assets-

Unallocated portion of reserve for policyholders' dividends

-

302

1,479

Deferred tax assets

83,648

92,119

Excess amount of policy reserves based on Zillmer method

470,777

483,497

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(31,308)(16,818)

Deductible items(1,707)(2,457)(B)

85,93088,254

Insurance risk

R1

23,576

23,793

Third-sector insurance risk

R8

8,519

8,571

Assumed interest rate risk

R230,61330,980

Minimum guarantee risk

R715,902

16,598Asset management risk

R330,831

32,113Business management risk

R4

2,188

2,241

2,722.8%

2,774.4%

Total risk

(R1+R8)2+(R2+R3+R7)2 +R4

Solvency margin ratio
(A)/

B

100

Notes:
1. The figures are 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 is calculated based on the standardized approach.

14

(Reference) Consolidated Solvency Margin Ratio
Although Sony Life is not required to prepare consolidated financial statements since it does not have consolidated subsidiaries,
Sony Life discloses consolidated solvency margin ratio consolidated with it's affiliated companies quarterly.
(Millions of yen)

Category

As of March 31, 2016

Total solvency margin

As of September 30, 2016

1,151,900

1,205,735

Common stock, etc.

318,011

338,742

Reserve for price fluctuations

44,26045,040Contingency reserve

75,16678,637(A)

Catastrophe reserve-

General reserve for possible loan losses
Net unrealized gains on other securities (before tax deductions) and net
deferred gains or losses on hedging instruments (before tax deductions) ×
90% (100% if losses)

-

0

1

188,217

180,480

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

20,778

20,778

Total amount of unrecognized net actuarial differences, and unrecognizedprior service cost

(4,836)(4,329)--Amount excluded from deferred tax assets
Unallocated portion of reserve for policyholders' dividends

302

1,479

Deferred tax assets

83,648

92,119

Excess amount of policy reserves based on Zillmer method

470,777

483,497

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(33,036)(19,597)

Deductible items(11,389)(11,114)82,98385,297

23,576

23,793

Total risk

R12+R52+R8+R9)2+(R2+R3+R7)2+R4+R6(B)

Insurance risk

R1

Ordinary insurance risk

R5

-

-

Major Catastrophe risk

R6

-

-

Third-sector insurance risk

R8

8,519

Insurance risk of small-amount short-term insurance providers

8,571
-

R9

-

Assumed interest rate risk

R230,61330,980

Minimum guarantee risk

R715,902

16,598Asset management risk

R327,69828,980Business management risk

R4

2,126

2,178

2,776.2%

2,827.1%

Solvency margin ratio(A)/ B

100

Notes:
1. The figures are 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 is calculated based on the standardized approach.

15

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

Category

As of March 31, 2016

Individual variable life insurance and individual variable annuities

As of September 30, 2016
850,323856,638--

850,323856,638

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

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

As of March 31, 2016

Category

NumberAs of September 30, 2016

AmountNumberAmountVariable life insurance (whole life type)823

8,690,797

846

8,769,305

Variable life insurance (limited term type)84

323,34991

362,933

Variable life insurance (term type)1

40,5381

39,066909

9,054,686

938

9,171,305

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

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

As of March 31, 2016

Category

NumberIndividual variable annuities

As of September 30, 2016

Amount81

456,096

NumberAmount93

524,150

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 whichannuity payments have not yet commenced and (b) the amount of policy reserves for policies for which payments have commenced.

16