【Presentation Material】

Consolidated Financial Results
for the Nine Months
Ended December 31, 2019
andSony Lifeʼs MCEV
as of December 31, 2019Sony Financial Holdings Inc.
February 13, 2020

I am Kiyomiya from Sony Financial Holdings.
I would like to explain about consolidated financial results for FY19.3Q
followed by this presentation material.

AGENDA
Consolidated Operating Results for the Nine Months Ended December 31, 2019

P. 3

<FY19.3Q (9M)>
Forecast of Consolidated Financial Results for the Fiscal Year Ending

P. 18

March 31, 2020 (FY2019)
Dividend Forecast for FY2019

P. 20

Sony Lifeʼs MCEV as of December 31, 2019

P. 22

Appendix

P. 25

Disclaimers:
This presentation material contains statements concerning the current plans, expectations, strategies and beliefs of the Sony Financial Group.
Any statements contained herein that are not historical facts are forward-looking statements or pro forma information. Forward-looking
statements may include̶but are not limited to̶words such as “believe,” “anticipate,” “plan,” “strategy,” “expect,” “assume,” “forecast,”“predict,” “propose,” “intend” and “possibility” that describe future operating activities, business performance, events or conditions. Forwardlooking statements, whether spoken or written, may also be included in other materials released to the public. These forward-looking
statements and pro forma information are based on assumptions, decisions and judgments made by the management of Sony Financial Group
companies, and are based on information that is currently available to them. As such, they are subject to various risks and uncertainties, andactual business results may vary substantially from the forecasts expressed or implied in forward-looking statements. Consequently, investors
are cautioned not to place undue reliance on forward-looking statements. Sony Financial Group companies are under no obligation to revise
forward-looking statements or pro forma information in light of new information, future events or other findings. The information contained inthis presentation does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or
subscribe to any securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment
whatsoever in Japan or abroad.
(Note 1) Unless otherwise indicated, in these materials figures less than the indicated unit have been truncated, while ratios and percentage changes have beenrounded. Also, a “‒” is used where percentage changes exceed 1,000% and in cases where one or both comparisons are negative.
(Note 2) “Lifeplanner” is a registered trademark of Sony Life.
Copyright © Sony Financial Holdings Inc. All rights reserved.

2

Consolidated Operating Results
for the Nine Months Ended
December 31, 2019
<FY19.3Q (9M)>Highlights of Consolidated Financial Results

 The forecast of consolidated financial results for FY2019 has been revised

upward because ordinary revenues, ordinary profit and profit attributableto owners of the parent in FY19.3Q (9M) exceeded projections made at
the beginning of the fiscal year.

 The dividend forecast for FY2019 has been revised upward. SFH will

determine the future dividends, while aiming for an amount equivalent toapproximately 30% of consolidated adjusted profit.

 Sony Life's new policy amount decreased year on year in FY19.3Q (9M)

due to a drop in the sales of family income insurance. Ordinary profit
increased mainly as costs related to the acquisition of new policies fell andprofit rose in accordance with expansion in the policy amount in force.

New business value for FY19.3Q (3M) increased quarter on quarter toa revision to premium rates of single-premium U.S. dollar-denominatedwhole life insurance and relaunched sales of corporate products. The new
business margin was up from the previous quarter, due mainly to a change inproduct mix.
Copyright © Sony Financial Holdings Inc. All rights reserved.

4

I would like to explain some points about the Sony Financial Groupʼs financial
results in FY19.3Q (9M)
The forecast of consolidated financial results for FY2019 has been revised
upward because ordinary revenues, ordinary profit and profit attributable toowners of the parent in FY19.3Q (9M) exceeded projections made at the
beginning of the fiscal year.
The dividend forecast for FY2019 has been revised upward to ¥70 from¥65 per share. SFH will determine future dividends, while aiming for
an amount equivalent to approximately 30% of consolidated adjusted profit.
Sony Life's new policy amount for FY19.3Q (9M) decreased year on year
due to a drop in the sales of family income insurance. Ordinary profit
increased mainly as costs related to the acquisition of new policies fell andprofit rose in accordance with expansion in the policy amount in force.
New business value for FY19.3Q (3M) increased quarter on quarter to¥17.1 billion, due to a revision to premium rates of single-premium
U.S. dollar-denominated whole life insurance and relaunched sales ofcorporate products. The new business margin was up 1.3 percentage points
from the previous quarter to 5.1%, due mainly to a change in product mix.

Highlights of Consolidated Operating Performance◆ Ordinary Revenues︓
Increased 26.3% year on year, to ¥1,426.0 billion, owing to increases in ordinary revenues
from all the businesses: life insurance, non-life insurance and banking businesses.
◆ Ordinary Profit︓
Increased 9.7% year on year, to ¥81.2 billion, owing to increases in ordinary profit
from all the businesses mentioned above.
Ordinary Revenues＋26.3%

Ordinary Profit

1,426.0
74.0

1,129.3(JPY bn)

FY18.3Q (9M)

＋9.7%

81.2

(JPY bn)

FY19.3Q (9M)

FY18.3Q (9M)

FY19.3Q (9M)

Copyright © Sony Financial Holdings Inc. All rights reserved.

Next, I would like to explain about consolidated operating performance.
Ordinary revenues increased 26.3% year on year, to ¥1,426.0 billion.
Ordinary profit increased 9.7% year on year, to ¥81.2 billion.
Next, I would like to explain about operating performance of Sony Life.

5

Highlights of Operating Performance : Sony Life (Non-consolidated)◆ Ordinary Revenues︓
Increased 28.7% year on year, to ¥1,295.1 billion, due to an improvement in investment
performance in the separate account and higher insurance premium revenue, mainly from single
premium insurance.
◆ Ordinary Profit︓
Rose 10.0% year on year, to ¥66.6 billion, as costs related to the acquisition of new policies fell due toa decline in the new policy amount and profit rose in accordance with expansion of the policy amount inforce, which more than offset the effect of a deterioration in net gains (losses) on derivative transactions
to hedge market risks for available-for-sale securities in the general account, a rise in operating expenses
and net gains (losses) associated with market fluctuations and others in the variable life insurance*.
* The total of (a) the provision of policy reserves for minimum guarantees for variable life insurance according to market fluctuations andothers and (b) net gains (losses) on derivative transactions to hedge market risks for the products.

Ordinary Revenues

1,006.5＋28.7%

Ordinary Profit

1,295.1
60.5＋10.0%

66.6(JPY bn)(JPY bn)

FY18.3Q (9M)

FY19.3Q (9M)

FY18.3Q (9M)

FY19.3Q (9M)

Copyright © Sony Financial Holdings Inc. All rights reserved.

6

Sony Lifeʼs ordinary revenues increased 28.7% year on year,to ¥1,295.1 billion, due to an improvement in investment performance inthe separate account and higher insurance premium revenue, mainly
from single premium insurance.
Ordinary profit rose 10.0% year on year, to ¥66.6 billion,
as costs related to the acquisition of new policies fell and profit rose inaccordance with expansion of the policy amount in force, which morethan offset the effect of a deterioration in net gains (losses) on derivativetransactions to hedge market risks for available-for-sale securities in thegeneral account, a rise in operating expenses and net gains (losses)
associated with market fluctuations and others in the variable life
insurance.

Operating Performance : Sony Life (Non-consolidated) (1)◆ New Policy Amount︓
Decreased due to lower sales of family income insurance.
◆ Annualized Premiums from New Policies︓
Remained flat due to lower sales of term life insurance and variable life insurance for corporate
customers despite a favorable sales of U.S. dollar-denominated insurance.
Number and Amount of New Policies

Annualized Premiums from New Policies（Individual life insurance + Individual annuities）（Individual life insurance + Individual annuities）

New policy amount
Number of new policies (Thousands of policies)

Annualized premiums from new policies
Of which, third-sector

445
384
3.44

+3.4%

460

4.59

＋0.5%

3.82
(16.7%)(JPY bn)(JPY tn)

FY17.3Q (9M)

57.2

56.9

51.9

FY18.3Q (9M)

FY19.3Q (9M)

11.1 (16.0%)

9.3

FY17.3Q (9M)

FY18.3Q (9M)

9.3

FY19.3Q (9M)

Copyright © Sony Financial Holdings Inc. All rights reserved.

（Left-hand graph）
New policy amount decreased 16.7% year on year,to ¥3,828.2 billion, due to lower sales of family income insurance.
The number of new policies increased 3.4% year on year,
to 460 thousand policies.
（Right-hand graph）
Annualized premiums from new policies remained flat year on year,
to ¥57.2 billion, due to lower sales of term life insurance andvariable life insurance for corporate customers despite a favorable salesof U.S. dollar-denominated insurance.
Of which, the figure for third-sector products decreased 16.0%
year on year, to ¥9.3 billion.

7

Operating Performance : Sony Life (Non-consolidated) (2)
Number and Amount of Policies in Force（Individual life insurance + Individual annuities）
Policy amount in force
Number of policies in force (Millions of policies)

7.76

7.84

48.8

49.5

+2.8%

Annualized Premiums from Insurance in Force（Individual life insurance + Individual annuities）
Annualized premiums from insurance in force
Of which, third-sector

8.07

871.1

911.6

889.3
+2.5%

50.9
+2.7%

(JPY tn)

196.0

197.5

Dec. 18

Mar. 19

+1.5%

200.4

(JPY bn)

Dec. 18

Mar. 19

Dec. 19

Dec. 19

Copyright © Sony Financial Holdings Inc. All rights reserved.

8

Sony Lifeʼs policy amount in force which reflects new policy amount andlapse and surrender amount, are shown here.
(Left-hand graph)
Policy amount in force for the total of individual life insurance andindividual annuities increased 2.7% from March 31, 2019,to ¥50.9 trillion.
The number of policies in force increased 2.8% from March 31, 2019,
to 8.07 million polices.
(Right-hand graph)
Annualized premiums from insurance in force increased 2.5%
from March 31, 2019, to ¥911.6 billion.
Of which, the figure for third-sector products was up 1.5%
from March 31, 2019, to ¥200.4 billion.

Operating Performance : Sony Life (Non-consolidated) (3)◆ Lapse and Surrender Rate︓
Down due to a decrease in cancellation of policies, with certain customers cancelling existing
policies and taking out new family income insurance and other policies, as premiums wererevised in line with revision to the standard mortality tables in February 2018.
Lapse and Surrender Rate*（Individual life insurance + Individual annuities）
Annual

9M

6.06
4.97
4.71

3.30
(1.41pt)

2.94（%）

FY2017FY2018FY2019*The lapse and surrender rate shows the ratio derived by dividing the amount of lapses and surrenders, not adjusted for policy
amount decreases, increases, and reinstatements, by the policy amount in force at the beginning of the fiscal year.
Copyright © Sony Financial Holdings Inc. All rights reserved.

The lapse and surrender rate was down 1.41 percentage points
year on year, to 3.30%.
The fall in the lapse and surrender rate was due to a decreasein cancellation of policies, with certain customers cancelling existing
policies and, taking out new family income insurance andother policies, as premiums were revised in line with revisions
to the standard mortality tables in February 2018.

9

Operating Performance : Sony Life (Non-consolidated) (4)◆ Core Profit︓
Increased year on year due to a decrease in the provision of policy reserves for minimum
guarantees for variable life insurance and profit rose in tandem with expansion of the policy
amount in force.

Core Profit and Adjusted Core Profit
Core profit+47.1%

61.6

63.7

FY17.3Q(9M)

FY18.3Q(9M)

FY19.3Q(9M)

Positive spread

13.9

14.0

14.5

Provision of policy reserve forminimum guarantees for variable
life insurance*1(4.8)(22.1)

1.3

Adjusted core profit*2

61.6

71.8

77.9

93.7
77.9

71.8

70.6

◆ Details of core profit

Adjusted core profit+8.4%(JPY bn)*1 Provision of policy reserves for minimum guarantees for variable life insurance is
described as negative amount.

(JPY bn)*2 Adjusted core profit = (Core profit) ‒ (Positive spread) ‒ (Provision ofpolicy reserves for minimum guarantees for variable life insurance)

FY17.3Q (9M) FY18.3Q (9M) FY19.3Q (9M)

Copyright © Sony Financial Holdings Inc. All rights reserved.

Core profit increased 47.1% year on year to ¥93.7 billion,
due to a decrease in the provision of policy reserves for minimum
guarantees for variable life insurance and profit rose in tandem withexpansion of the policy amount in force.

10

Operating Performance : Sony Life (Non-consolidated) (5)◆ Ordinary Profit︓
Increased due to an increase in core profit despite a deterioration in net gains (losses)on hedges of variable life insurance.
Core Profit and Ordinary Profit◆ Difference from core profit(JPY bn)

Core profit

Ordinary profit

93.7
70.6

41.9

＋47.1%

63.7

66.6

60.5
+10.0%

FY18.3Q(9M)

FY19.3Q(9M)

Core profit

70.6

63.7

93.7

Capital gains (losses)*1

(9.4)

1.6

(2.2)

Gains (losses) on hedges ofvariable life insurance*2(13.5)

1.6(17.9)

Provision of contingency reserve*3

(5.6)

(6.3)

(6.8)

Others

(0.0)

(0.1)

(0.1)

Ordinary profit

41.9

60.5

66.6

*1 Capital gains (losses) exclude gains or losses on hedges of variable life insurance.
*2 Gains (losses) on hedges of variable life insurance offset the impact of market
fluctuations on provision of policy reserves for minimum guarantees for variable
life insurance on page 10.
*3 Provision of contingency reserve is described as negative amount.

(JPY bn)

FY17.3Q (9M)

FY17.3Q(9M)

FY18.3Q (9M)

FY19.3Q (9M)

◆Regarding hedges of variable life insuranceMarket fluctuations resulted in the following accounting gains (losses), due todifferences between Japanese GAAP and economic value-based valuation.
Please refer to page 36 for details.

(JPY bn)
Gains (losses) of variable life insurance
related to market fluctuations

FY17.3Q(9M)(0.3)

FY18.3Q(9M)

FY19.3Q
(9M)

(1.2)

(2.9)

Copyright © Sony Financial Holdings Inc. All rights reserved.

11

Ordinary profit increased 10.0% year on year to ¥66.6 billion,
due to an increase in core profit despite a deterioration in net gains(losses) on hedges of variable life insurance.
Net gains (losses) on hedges of variable life insurance offset
the impact of market fluctuations related to provision of policy reserve
for minimum guarantees for variable life insurance on page 10.
Sony Life increased its hedge ratio from FY2019 with a greater emphasis
on suppressing capital fluctuations based on economic value, which are
more suitable for valuing the growth of the life insurance business.
However, assessment of the policy reserve
differs between Japanese GAAP and economic value-based valuation,
which makes Japanese GAAP accounting profits more susceptible tomarket conditions.
The accounting impact resulting from the difference between Japanese
GAAP and economic value-based valuation is as described in the note.

Operating Performance : Sony Life (Non-consolidated) (6)

Number of Lifeplanner Sales Employees
(32)

5,142

5,135

5,147

5,106

5,164

5,116

5,119

5,074
(45)

（Number）

Mar. 18

Jun. 18

Sep. 18

Dec. 18

Mar. 19

Jun. 19

Sep. 19

Dec. 19

Copyright © Sony Financial Holdings Inc. All rights reserved.

The number of Lifeplanner sales employees as of December 31, 2019,was 5,074, down 45 from September 30, 2019 and down 32 from
December 31, 2018.
Sony Life will work to expand its business scale through stringent
recruiting of Lifeplanner sales employees and further enhancing
their productivity.
Next, I would like to explain about operating performance ofSony Assurance.

12

Highlights of Operating Performance : Sony Assurance◆ Ordinary Revenues :Increased 4.9% year on year, to ¥90.5 billion, due mainly to an increase in net premiums
written for mainstay automobile insurance.
◆ Ordinary Profit :Increased 2.9% year on year, to ¥7.6 billion, mainly due to a reversal of the catastrophe reserve
despite the negative impact of a higher loss ratio.
Ordinary Profit

Ordinary Revenues

86.2

＋4.9%

90.5
7.3

＋2.9%

7.6

(JPY bn)(JPY bn)

FY18.3Q (9M)

FY19.3Q (9M)

FY18.3Q (9M)

FY19.3Q (9M)

Copyright © Sony Financial Holdings Inc. All rights reserved.

13

Ordinary revenues increased 4.9% year on year, to ¥90.5 billion,
due mainly to an increase in net premiums written for mainstay
automobile insurance.
Ordinary profit increased 2.9% year on year, to ¥7.6 billion,
mainly due to a reversal of the catastrophe reserve despite the negative
impact of a higher loss ratio.

Operating Performance : Sony Assurance (1)◆ Net Premium Written︓Increased due to stable sales of mainstay automobile insurance.
Ordinary Profit andAdjusted Ordinary Profit

Net Premium Written
Voluntary automobile insurance
Others81.0

Personal accident insurance

Ordinary profit

10.0

9.9
(1.4%)

88.8

84.6

Adjusted ordinary profit

7.6

＋4.9%

7.6

7.3
＋2.9%

5.0

xx
(JPY bn)

FY17.3Q (9M)

FY18.3Q (9M)

FY19.3Q (9M)

*Adjusted ordinary profit = Ordinary profit + Provision for catastrophe reserve（Reference) Provision for catastrophe reserve(JPY bn)

FY17.3Q (9M)

FY18.3Q (9M)

FY19.3Q (9M)

Note: Most of personal accident insurance is medical insurance.

（JPY bn）

FY17.3Q(9M)

FY18.3Q(9M)

FY19.3Q(9M)

Provision for catastrophe reserve

2.5

2.6

2.3

Note: Provision for catastrophe reserve is described as positive amount.
Copyright © Sony Financial Holdings Inc. All rights reserved.

14(Left-hand graph)
Net premiums written increased 4.9% year on year, to ¥88.8 billion
due to stable sales of mainstay automobile insurance.
(Right-hand graph)
Ordinary profit increased year on year as described before.
Adjusted ordinary profit is an profit indicator on a managerial accounting
basis. The figure is calculated by adjusting the amount of provision(reversal) for catastrophe reserve to ordinary profit.
Adjusted ordinary profit was ¥9.9 billion.

Operating Performance : Sony Assurance (2)◆ Sum of Two Ratios︓
Increased due to an increase in E.I. loss ratio.
Combines Ratio

Sum of Two Ratios（Net Loss ratio＋ Net Expense Ratio）（E.I. Loss Ratio ＋ Net Expense Ratio）
E.I. loss ratio

88.9

Net expense ratio

Net loss ratio

87.8

87.2

81.5

Net expense ratio+0.6pt＋1.1pt

62.2

61.8

61.5

27.1

25.7

25.6

FY17.3Q (9M)

FY18.3Q (9M)

FY19.3Q (9M)（%）

+0.7pt

83.5

82.4

57.9

54.4

56.7

27.1

25.7

25.6

FY17.3Q (9M)

FY18.3Q (9M)

FY19.3Q (9M)

＋1.2pt(0.1pt)(0.1pt)Note:
E.I. loss ratio = (Net losses paid + Provision for reserve for outstanding losses
and claims+ Loss adjustment expenses) / Earned premiums x100
[Earthquake insurance and compulsory automobile liability insurance are excluded.]

（%）

Note:
Net loss ratio = (Net losses paid + Loss adjustment expenses) /Net premiums written x100
Net expense ratio = Expenses related to underwriting / Net premiums written x100
Copyright © Sony Financial Holdings Inc. All rights reserved.

15(Left-hand graph)
The sum of two ratios (E.I. loss ratio + net expense ratio) was up
0.6 percentage points year on year, to 87.8%, due to an increase in
E.I. loss ratio.
(Right-hand graph)
The net loss ratio was up 1.2 percentage points year on year,
to 57.9%. This is different from the E.I. loss ratio, which reflects
an increase or a decrease in provision for reserve for outstanding losses
and claims.
The combined ratio (the sum of the net loss ratio and the net expense
ratio) was up 1.1 percentage points year on year, to 83.5%.
Next, I would like to explain about operating performance of Sony Bank.

Highlights of Operating Performance : Sony Bank (Consolidated)◆ Ordinary Revenues and Ordinary Profit︓
Ordinary revenues expanded 8.8% year on year, to ¥36.7 billion, and ordinary profit was up
15.7% year on year, to ¥8.1 billion, due to increases in such income as interest on loans in linewith a growing balance of mortgage loans and higher interest income on investment securities.
Ordinary Profit

Ordinary Revenues

33.7

＋8.8%

36.7

＋15.7%

8.1(JPY bn)(JPY bn)

FY18.3Q (9M)

7.0

FY19.3Q (9M)

FY18.3Q (9M)

FY19.3Q (9M)

Copyright © Sony Financial Holdings Inc. All rights reserved.

In consolidated basis, ordinary revenues expanded 8.8% year on year,to ¥36.7 billion, due to increases in such income as interest on loans
in line with a growing balance of mortgage loans and higher interest
income on investment securities.
Ordinary profit increased 15.7% year on year, to ¥8.1 billion,
for the same reasons as ordinary revenues.

16

Operating Performance : Sony Bank (Non-consolidated)◆ Customer Assets
・Yen Deposits︓
Increased due mainly to an increase in newly accumulated funds via the increased number of accounts.
・Foreign Currency Deposits︓
Increased due mainly to an increase in time deposit.
◆ Loans Outstanding・Expanded due to a steady increase in mortgage loans.
Loans Outstanding

Customer Assets
Yen deposits

2,343.0
123.7
404.6

Foreign currency deposit

419.6

Mortgage loans

2,625.3

2,483.3
124.3

Investment trusts

1,596.3

125.6+142.0451.9

1,939.3

1,874.4

1,744.1
53.7

70.7

1,525.5
1,814.7

Others*Corporate loans:¥29.6 billion,
Card loans :¥17.3 billion.

+130.3

1,690.3

47.0*

1,827.4

2,047.8(JPY bn)(JPY bn)

Mar. 18

Mar. 19

Dec. 19

Mar. 18

Mar. 19

Dec. 19

Copyright © Sony Financial Holdings Inc. All rights reserved.

(Left-hand graph)
As of December 31, 2019, customer assets amounted to¥2,625.3 billion, up ¥142.0 billion from March 31, 2019.
Of this amount, the yen deposit balance amounted to¥2,047.8 billion, up ¥108.4 billion from March 31, 2019, due mainly to
an increase in newly accumulated funds via the increased number ofaccounts.
The yen-denominated balance of foreign currency deposits amounted
to ¥451.9 billion, up ¥32.3 billion from March 31, 2019, due mainly
to an increase in time deposit.
(Right-hand graph)
The loan balance as of December 31, 2019 expanded ¥130.3 billion
from March 31, 2019, to ¥1,874.4 billion, due to a steady increasein mortgage loans.
This conclude the explanation of the results of three companies.

17

Forecast of Consolidated Financial
Results for the Fiscal Year Ending
March 31, 2020
(FY2019)

Forecast of Consolidated Financial Results for FY2019
Forecast of consolidated financial results for FY2019 has been revised upwardfrom the figures announced on April 26, 2019.
FY2019 (Formerly
announced forecast)

FY2019(Updated forecast)Amount ofchange1,690.0

1,860.0＋170.01,629.1+14.2%

1,520.5

1,691.3+170.81,464.3+15.5%

Non-life insurance business

121.2

121.2

−

115.1

+5.3%

Banking business

49.3

49.3

−

46.0

+7.1%

(JPY bn)
Ordinary revenues
Life insurance business

Ordinary profit

FY2018（Actual）

Percentage change(Updated forecast)

98.0

103.0

＋5.0

93.8

+9.7%

Life insurance business

84.2

86.5

＋2.3

78.2

+10.6%

Non-life insurance business

7.0

7.9

＋0.9

6.8

+14.5%

Banking business

8.6

10.0

＋1.4

9.5

＋4.2%

65.0

68.0

＋3.0

62.0

+9.5%

Profit attributable to owners of the parents＜Ordinary revenues＞

The full-year forecasts for ordinary revenues has been revised upward because results in the life insurance business in FY19.3Q (9M) exceeded projections made at
the beginning of the fiscal year, due to the following factors:(+) Higher gains on investments in the separate account, (+) Higher insurance premium revenue, mainly from single-premium insurance＜Ordinary profit＞
The full-year forecasts for ordinary profit has been revised upward because FY19.3Q (9M) results in all businesses (life insurance, non-life insurance and banking)exceeded projections made at the beginning of the fiscal year. The main reasons for the life insurance business are as follows:(+) Decrease in costs related to the acquisition of new policies, (-) Impairment loss on available-for-sale securities in the general account, (-) Deterioration in terms ofnet gains (losses) associated with market fluctuations and others in the variable life insurance(Note) Sony Life acquired shares of AEGON Sony Life Insurance and SA Reinsurance, converting the two companies into wholly owned subsidiaries of
SFH and Sony Life on January 29, 2020. The above forecast of financial results includes the impact of this conversion, which is expected to be slight.
Copyright © Sony Financial Holdings Inc. All rights reserved.

19

The forecast of consolidated financial results for FY2019 has been revised
upward because ordinary revenues, ordinary profit and profit attributableto owners of the parents in FY19.3Q (9M) exceeded from the projections
made at the beginning of the fiscal year.
The reason for the upward revision of ordinary revenues is due tobetter-than-expected investment performance in the separate accountand insurance premium revenue, mainly from single premium insurance
during FY19.3Q (9M) in the life insurance business.
Ordinary profit has been revised upward, due mainly to better-thanexpected results during FY19.3Q (9M) from all the businesses:
life insurance, non-life insurance and banking businesses.
As for the life insurance business, costs related to the acquisition of
new policies fell, which more than offset the effect of an impairment loss
on available-for-sale securities in the general account and a deteriorationin terms of net gains (losses) associated with market fluctuations andothers in the variable life insurance.

Dividend Forecast for FY2019

Dividend Forecast for FY2019◆ Changes in the dividend forecast and future dividend amount
Considering the business environment and growth of our group, SFH decided to revise theyear-end dividend forecast from ¥65 per share to ¥70 for FY2019.
The previous forecast was announced on April 26, 2019.
SFH will determine future dividends, while aiming for an amount equivalent to approximately
30% of the consolidated adjusted profit, which is the numerator of consolidated adjusted ROE.
【Dividend Results／Forecast】(Yen)

Dividend per share

FY201555.0

FY201655.0

FY2017FY201860.0

62.5

FY2019（Forecast）
65.0⇒70.0（Reference）Medium-term Dividend Policy
We aim for steady increases in dividends in line with earnings growth over the medium to long term, while securing
sufficient internal reserves to ensure the financial soundness of Group companies and to invest in growth fields.
Management will examine earnings growth over the medium to long term by placing more importance on economic
value-based profit indicators that are more suitable for evaluating the growth of the life insurance business,in addition to statutory profit. Furthermore, management will determine specific dividend amounts for each year by taking
into account a comprehensive range of factors surrounding the Sony Financial Group.
*Please refer to page 26-27 for details of consolidated adjusted profit and consolidated adjusted ROE.
Copyright © Sony Financial Holdings Inc. All rights reserved.

21

The dividend forecast for FY2019 has been revised to ¥70,
an increase of ¥5 from ¥65 per share from the previous announcement
on April 26, 2019.
There is no change in our policy to determine dividends with a focus on
economic value-based profit indicators, and we will continue to aim
for a stable increase in dividends in line with earnings growth over the
medium to long term.
In relation to dividends, we will use consolidated adjusted profit
instead of consolidated adjusted ROE to determine dividends.
Considering the business environment and growth of our group,
ｗe will determine future dividends, while aiming for an amountequivalent to approximately 30% of the consolidated adjusted profit.

Sony Lifeʼs MCEV
as of December 31, 2019

Some parts of the calculations of MCEV adopted simplified method expect for those as of March 31, 2019.
Please keep in mind that the validity of these calculations has not been verified by outside specialists.

Sony Lifeʼs MCEV
◆ Reasons for Changes in MCEV
・MCEV as of December 31, 2019 remained at the same levels from September 30, 2019, due mainly
to an acquisition of new policies, despite a negative factor of interest rate fluctuations.
◆ New Business Value / New Business Margin
・New business value for FY19.3Q (3M) increased quarter to quarter to ¥17.1 billions, due to a revision
to premium rates of single-premium U.S. dollar-denominated whole life insurance and relaunchedsales sales of corporate products.
・New business margin for FY19.3Q (3M) was up 1.3pt from FY19.2Q (3M), due mainly to a change inproduct mix.
（JPY bn）

MCEV

Mar. 19

Sep. 19

Dec. 19

ChangefromMar. 19

ChangefromSep. 19

1,720.2

1,691.9

1,692.9(27.3)+1.0

Adjusted net worth

2,195.7

2,498.9

2,372.2+176.4(126.7)

Value of existing business(475.5)(807.0)(679.3)(203.8)+127.7

FY19.3Q(3M)

FY19.3Q(9M)（JPY bn）

FY18.4Q(3M)

FY19.1Q(3M)

FY19.2Q(3M)

New business value

23.1

17.0

14.8

17.1

49.0

New business margin

5.0%

5.4%

3.8％

5.1%

4.7%

Note: Calculated MCEV as of June 30, 2019 onward by using mainly updated economic assumptions and lapse and surrender rate from March 31, 2019.
*Please refer to page 42-45 for trend on bond yields and yield curves.

Copyright © Sony Financial Holdings Inc. All rights reserved.

Sony Lifeʼs MCEV as of December 31, 2019 remained at the same levels
from September 30, 2019, due mainly to an acquisition of new policies,
despite a negative factor of interest rate fluctuations.
New business value for FY19.3Q (3M) increased quarter on quarter to¥17.1 billions, due to a revision to premium rates of single-premium U.S.
dollar-denominated whole life insurance and relaunched sales ofcorporate products.
New business margin for FY19.3Q (3M) was up 1.3 percentage points
from FY19.2Q (3M) to 5.1%, due mainly to a change in product mix.

23

Sony Lifeʼs MCEV: Breakdown of MCEV for FY19.3Q (9M)

Numerator of core ROEV:+60.3
1,720.2+49.0

1,688.0

MCEV
as of Mar. 19(after dividends paid)(55.4)

1,692.9
Assumptionchanges

New business
value

MCEV
as of Mar. 19

Dividend
payments toshareholder(JPY bn)+11.2
Expected existing
business contribution(32.2)

MCEV
as of Dec. 19

Note: Details on assumption changes : Insurance-related assumption changes:+¥16.0 billion,
economic variances changes (included interest rate fluctuation): ¥(71.4) billion.

Copyright © Sony Financial Holdings Inc. All rights reserved.

24Sony Lifeʼs MCEV as of December 31, 2019 was ¥1,692.9 billion,
due to a decrease from a negative factor in interest rate fluctuations
and dividend payments to shareholders, despite an increased
contribution from numerators of the core ROEV formula:
new business value and expected existing business contribution.
This conclude the explanation.
Thank you.

◆Sony Financial Group
Detail of Consolidated Adjusted ROE
Detail of Consolidated Adjusted Profit andConsolidated Adjusted Capital
Calculation of Consolidated Adjusted ROE
Update of Major KPIs
Financial Soundness
Results of Cross-selling

Appendix◆Sony Life
Product Portfolio
Asset Management
General Account Assets
Interest Income and Dividends (Details)
Capital Gains (Losses)
Quarterly Trend on New Policy Amount
Quarterly Trend on Annualized Premiums from New Policies
Quarterly Trend on New Business Value
ESR
Operating Performance : AEGON Sony Life Insurance
Trend on JGB Yields (Par rate)
Trend on Risk-free Rate (Japanese yen/Par rate)
Trend on U.S. Dollar Bonds Yields (Par rate)
Trend on Risk-free Rate (U.S. Dollar /Par rate)◆Financial Results of Each Group Company（Summary Financial Statements, etc.）
Consolidated/Sony Life/Sony Assurance/Sony BankDetail of Consolidated Adjusted ROE

FY2018(12M)

FY18.3Q(9M)

FY19.3Q(9M)

Consolidated Adjusted ROE

6.7%

5.1%

4.0%

(Sony Life) Core ROEV

6.4%

4.8%

3.6%

(Sony Assurance) Adjusted ROE

15.2％

14.3%

13.0%

(Sony Bank) ROE

7.3%

5.3%

6.0%

Copyright © Sony Financial Holdings Inc. All rights reserved.

26

Detail of Consolidated Adjusted Profit andConsolidated Adjusted Capital◆ Adjusted capital (Denominator）◆ Adjusted profit（Numerator)
Sony Financial Group（consolidated）（JPY bn）

FY2018

FY18.3Q(9M)

FY19.3Q
(9M)

120.4

90.8

72.8

FY2018

FY18.3Q(9M)

FY19.3Q(9M)

New business value *

91.3

68.2

49.0

Expected existing business
contribution *

15.0

10.7

11.2

Adjusted profit

106.4

78.9

60.3

FY2018

FY18.3Q(9M)

FY19.3Q(9M)

Net income

4.9

5.2

5.4

Provision amount forcatastrophe reserve (after tax)

2.6

1.9

1.6

Adjusted profit(consolidated)
Sony Life(non-consolidated) （JPY bn）

Sony Assurance（JPY bn）

Provision amount for reservefor price fluctuations(after tax)

0.0

0.0

0.0

Adjusted profit

7.6

7.2

7.1

FY2018

FY18.3Q(9M)

FY19.3Q
(9M)

6.3

4.6

5.4

Sony Bank(consolidated)（JPY bn）

Profit attributable to ownersof the parent

Sony Financial Group（consolidated）（JPY bn）

Adjusted capital(consolidated)
Sony Life(non-consolidated)

FY20181,801.8（JPY bn）①MCEV as of the beginning of
the fiscal year
②Dividends paid

FY2018
1,633.1

FY18.3Q(9M)

FY19.3Q(9M)

1,773.5

1,836.0

FY18.3Q(9M)

FY19.3Q(9M)

1,633.1

1,720.2

26.2

26.2

32.2

③MCEV as of the end of theperiod *1,720.2

1,664.6

1,692.9

Adjusted capital（①−②＋③）/２

1,663.5

1,635.7

1,690.5

FY18.3Q(9M)

FY19.3Q(9M)

Sony Assurance（JPY bn）

FY2018①Net assets

34.7

35.3

37.4

②Catastrophe reserve

17.7

17.0

19.4

③Reserve for price fluctuations

0.1

0.1

0.1

Adjusted capital（The averageamount of ①＋②＋③）

50.5

50.4

54.9

FY18.3Q(9M)

FY19.3Q(9M)

Sony Bank(consolidated)（JPY bn）

Adjusted capital（The averageamount of net assets during
the period）

FY2018
87.6

87.3

90.5

* Please keep in mind that the validity of these calculations has not been verified by outside specialists for the figures for FY18.3Q (9M) and FY19.3Q (9M).
Copyright © Sony Financial Holdings Inc. All rights reserved.

27

Calculation of Consolidated Adjusted ROE
Since each company of Sony Financial Group differs by industry such as insurance and banking,each group company calculate its “Adjusted ROE” based on adjusted profit and adjusted capital
to realize its corporate value and capital efficiency.

Sony Financial Group *Sony Life
Core ROEVSony Assurance
Adjusted ROE

Numerator(Adjusted
profit)New business value +Expected existing business
contribution

Net income (loss) + Provision
amount for catastrophe
reserve and its provision ②
amount for reserve for pricefluctuations during the fiscal
year, in each case after taxes＋

Denominator(Adjusted
capital)MCEV as of the beginning of
the fiscal year less dividends
paid plus MCEV as of the endof the fiscal year, divided bytwo.

The average amount of net
assets plus the sum ofcatastrophe reserve and its
reserve for price fluctuations
during the fiscal year,
in each case after taxes ⑤

＋

＋

①

④

＋

Sony Bank
ROE
Profit (loss) attributable toowners of the parent③

The average amount of net
assets during the fiscal year⑥

* Consolidated Adjusted ROE = Consolidated Adjusted Profit divided by Consolidated Adjusted Capital
Consolidated Adjusted Profit ＝ ①＋②＋③
Consolidated Adjusted Capital ＝ ④＋⑤＋⑥

Copyright © Sony Financial Holdings Inc. All rights reserved.

28

Update of Major KPIs

Sony Life
Policy Amount in Force *1

48.8

49.5

50.9

（JPY tn）
Dec. 18

Sony Assurance
Direct Premiums Written

80.0

83.9

88.5

Dec. 19

3.9

4.2

4.4

Mar. 19

Dec. 19（JPY tn）（JPY bn）
Mar. 19

Sony Bank

Retail Balance*2

FY17.3Q

FY18.3Q

FY19.3Q

(9M)

(9M)

(9M)

Mar. 18*1 Individual Life Insurance + Individual Annuities*2 Sum of yen deposits, foreign currency deposits, investment trusts, financial products intermediary services, mediated discretionary investment
contracts and personal loans

Copyright © Sony Financial Holdings Inc. All rights reserved.

29

Financial Soundness

Change from
Mar. 19

Mar. 18

Mar. 19

Dec. 192,624.3%

2,590.5%

2,591.7%+1.2ptSony Assurance
Solvency margin ratio

782.1%

813.0%

919.6％+106.6pt

Sony Bank (non-consolidated)
Capital adequacy ratio (domestic standard)

10.45%

9.58％

9.39％

(0.19pt)

Sony Life (non-consolidated)
Solvency margin ratio(Note) Ratios less than the indicated unit have been truncated.

Copyright © Sony Financial Holdings Inc. All rights reserved.

30

Results of Cross-selling Sony Bankʼs Mortgage Loans through Sony Life
Sony Life accounts for 12% of the amount of new mortgage loans for FY19.3Q (9M)Sony Life accounts for 18% of the balance of mortgage loans as of December 31, 2019※Sony Life started handling banking agency business in January 2008.

 Sony Assuranceʼs Automobile Insurance Sold by Sony Life
Sony Life accounts for 6% of new automobile policies for FY19.3Q (9M)※Sony Life started handling automobile insurance in May 2001.

Copyright © Sony Financial Holdings Inc. All rights reserved.

31

Sony Lifeʼs Product Portfolio(Annualized Premiums from New Policies by Product)

FY2018 (12M)¥87.9 billion

FY19.3Q（9M）¥57.2 billion
Yen whole
life３%

Yen whole
life 3%

Savings typeproducts
27%

U.S. dollardenominatedwhole life
13%
U.S. dollar-denominatedsingle-premium whole
life insurance 7%

Protection-type（term-life）
50％

Note: Savings type products : Endowment, annuities, and educational endowment insurances

Savings typeproducts
40%

U.S. dollardenominatedwhole life
16%
U.S. dollar-denominatedsingle-premium whole
life insurance 15%
Protection-type（term-life 26％

Copyright © Sony Financial Holdings Inc. All rights reserved.

32

Sony Lifeʼs Asset Management(Purchase Securities in the General Account)

FY2018 (12M)

FY19.3Q（9M）Japanesestocks0.1%

Japanesestocks
0.2%

JGBs
28.5%

Foreign bonds
23.5%

Japanese corporate
bonds
12.7%

JGBs
63.6%

Foreign bonds
60.8%

社債
25.9%

Japanese corporate
bonds
10.5%

(Note 1) Japanese corporate bonds include FILP agency bonds and Government-guaranteed bonds.
(Note 2) The graphs above are asset allocation for the relevant period. Total invested amount for the relevant period as 100%.
(excluding, investment in subsidiaries and affiliates, and strategic investments)
Copyright © Sony Financial Holdings Inc. All rights reserved.

33

Sony Lifeʼs General Account Assets (Detail of General Account Assets)◆ Asset management review
We have continued to accumulate ultralong-term bonds to match the liability characteristics of insurance
policies with long-term maturities with the aim of reducing interest rate risk.
Mar. 19

Dec. 19

Amount%Amount%Japanese bonds(including JGBs)

7,745.3

85.3%

7,968.2

81.7%

Japanese stocks

28.6

0.3%

25.4

0.3%

Foreign bonds

542.1

6.0%

926.9

9.5%

Foreign stocks

22.5

0.2%

17.9

0.2%

Money held in trust

269.3

3.0%

263.2

2.7%

Policy loans

198.3

2.2%

204.2

2.1%

Real estate*

90.8

1.0%

89.6

0.9%

Cash and call loans

61.9

0.7%

105.0

1.1%

Others

120.2

1.3%

150.1

1.5%

Total

9,079.4

100.0%

9,750.9

100.0%（JPY bn）◆ Yen Bond duration
Mar. 18 : 21.4 years
Mar. 19 : 21.8 years
Dec. 19 : 21.7 years◆ Investment in the money held in trustis mainly into Japanese bonds.
◆ The holding ratio on the real status ofJapanese bonds including those invested
in money held in trust in the generalaccount :Mar. 18 : 89.5%
Mar. 19 : 88.3%
Dec. 19 : 84.4%(Note) Real estate is the total of land, buildings, and construction in progress.
Copyright © Sony Financial Holdings Inc. All rights reserved.

34

Sony Lifeʼs Interest Income and Dividends (Details)(JPY mn)

FY18.3Q（9M）

FY19.3Q（9M）

Change00+22.2%

Japanese bonds(including JGBs)

97,082

99,518+2.5%

Japanese stocks

377

248

(34.0%)

Foreign securities

14,53821,841+50.2%

29380(72.6%)

Loans

5,124

5,278

+3.0%

Real estate

6,578

7,283

+10.7%

409

274(32.9%)

124,403

134,526+8.1%

Cash and deposits

Other securities

OthersTotal

Copyright © Sony Financial Holdings Inc. All rights reserved.

35

Sony Lifeʼs Capital Gains (Losses)（JPY mn）

FY18.3Q(9M)

FY19.3Q(9M)（JPY mn）
Capital gains

FY18.3Q(9M)

FY19.3Q(9M)

17,726

5,571

14,42025,750Losses on trading securities, net

293−

Gains on trading securities, net−

149

Losses on sale of securities…(3)3450

Gains on sale of securities…(3)

4,581

2,979

Foreign exchange gains, net

13,145−

Capital losses

Losses on valuation of securities…(4)

4,026

2,991

784

19,557

Losses on hedges of variable life
insurance…(1)(1,696)18,037

Losses on hedges of available-for-salesecurities…(2)(1,692)

1,363

4,141

39

−

3,117

Losses on derivatives, net

Losses on U.S. dollar-denominatedinsurance(foreign exchange losses)…(5)Foreign exchange losses, net
Losses on U.S. dollar-denominatedinsurance…(5)

−

3,253

Losses on hedges of variable life
insurance…(1)

−

(124)

9,280

32

9,280

−

Other capital losses
Losses on U.S. dollar-denominatedinsurance（the provision of policy reserves
for foreign exchange fluctuations)…(5)●Capital Gains (Losses) on Main Items, Net Amounts（JPY mn）

FY18.3Q(9M)

Gains on U.S. dollar- denominated insurance(foreign exchange gains)…(5)Other capital gains
Gains on U.S. dollar-denominated insurance（the reversal of policy reserves for foreignexchange fluctuations)…(5)Net capital gains (losses)

−

ー

2,442

−

2,442

3,306

(20,178)(Note 1) The figures of gains (losses) on trading securities, net, gains (losses)
on derivatives and foreign exchange gains (losses), net were recorded
after offsetting gains and losses of each item.
（Note 2）Sony Life increased its hedge ratio for variable life insurance and exchange
fluctuation risk related to U.S. dollar-denominated insurance from FY2019
with a greater emphasis on suppressing capital fluctuations based on
economic value, which are more suitable for valuing the growth of the life
insurance business. However, assessment of the policy reserve and others
differs between Japanese GAAP and economic value-based valuation,
which makes Japanese GAAP accounting profits more susceptible tomarket conditions.

FY19.3Q(9M)(1) Gains (Losses）on hedges of variable life insurance

1,696(17,912)(2) Gains (losses）on hedges of available-for-sale securities

1,692(1,363)(3) Gains (losses) on sale of securities

4,547

2,928

(4) Losses on valuation of securities(4,026)(2,991)

(384)

(850)

(5) Gains (losses) on U.S. dollar-denominated insurance

13,036・Please refer page 11 for the relationship between the (1) Gains(Losses）on hedges of variable life insurance and fluctuation of
liabilities, which are the hedged items.
・(5) Gains (losses) on U.S. dollar-denominated insurance
under “Capital Gains (Losses) on Main Items, Net Amounts” arethe net amount after offsetting net gains (losses) on hedges
exchange fluctuation risk related to U.S. dollar-denominatedinsurance and fluctuation of liabilities which are the hedged items.

Copyright © Sony Financial Holdings Inc. All rights reserved.

36

Sony Lifeʼs Quarterly Trend on New Policy Amount

1,842.4

1,674.7
1,485.0 1,435.5

1,115.8 1,114.8

1,214.7

1,555.1
1,219.1

1,317.2 1,291.7（JPY bn）

0.0
FY17.1Q FY17.2Q FY17.3Q FY17.4Q FY18.1Q FY18.2Q FY18.3Q FY18.4Q FY19.1Q FY19.2Q FY19.3Q(Note) Individual Life Insurance + Individual Annuities

Copyright © Sony Financial Holdings Inc. All rights reserved.

37

Sony Lifeʼs Quarterly Trend on Annualized Premiums from New Policies
Annualized premiums from new policies

Of which, third-sector

30.9

19.5
16.1

（JPY bn）

21.1

16.2

18.7

3.1

2.8

3.3

3.6

3.3

FY17.1Q

FY17.2Q

FY17.3Q

FY17.4Q

FY18.1Q

21.1

19.2

18.9

3.9

3.8

4.0

FY18.2Q

FY18.3Q

FY18.4Q

18.5

17.5

3.1

3.1

3.1

FY19.1Q

FY19.2Q

FY19.3Q(Note) Individual Life Insurance + Individual Annuities

Copyright © Sony Financial Holdings Inc. All rights reserved.

38

Sony Lifeʼs Quarterly Trend on New Business Value

19.8

21.1

21.9

22.6

23.6

23.1

17.1

17.1

17.0
14.8

12.2

（JPY bn）

FY17.1Q

FY17.2Q

FY17.3Q

FY17.4Q

FY18.1Q

FY18.2Q

FY18.3Q

FY18.4Q

FY19.1Q

FY19.2Q

FY19.3Q(Note) New business value is calculated accumulating new business value for each month based on economic assumptions at the end of each month.
The figures for FY2018 onward reflect the revision in the insurance risk measurement method and others which revised on March 31, 2018.
Copyright © Sony Financial Holdings Inc. All rights reserved.

39

Sony Lifeʼs ESRThe risk amount based on economic value as of December 31, 2019 was ¥760.1 billion, down ¥8.7 billion from
September 30, 2019, resulting from a decrease in interest rate risk, due to a change in shape of yen interest rates.
ESR as of December 31, 2019 was 226%, up 4pt from September 30, 2019 due mainly to a decrease in risk
amount based on economic value.
（JPY bn）

Mar. 19

Sep. 19

Dec. 19

Change from
Mar. 19

Change from
Sep. 19

Insurance risk

547.3

588.5

587.6

+40.2

(0.9)

Market-related risk

332.5

303.1

292.1

(40.4)(11.0)Of which, interest rate risk

202.1

166.7

155.1

(47.0)(11.6)

Operational risk

33.4

41.4

40.2

+6.8

(1.1)

Counter party risk

3.0

3.7

4.0

+0.9

+0.3

(174.0)(167.9)(163.8)

+10.2

+4.0

742.3

768.8

760.1

+17.7

(8.7)

Change from
Mar. 19

Change from
Sep. 19

Variance effect
The risk amount based on
economic value（JPY bn）

MCEV + Frictional costs
ESR

Mar. 19

Sep. 19

Dec. 19

1,743.7

1,709.4

1,717.4(26.3)

+8.0

235%

222%

226％

(9pt)

+4pt

(Note 1) The risk amount based on economic value refers to the total amount of Sony Lifeʼs risks comprehensively examined by a market consistent approach, including
insurance risk and market-related risk and others.
(Note 2) The solvency risk capital on an economic value basis is calibrated at VaR (99.5) over one year and based on the internal model.
(Note 3) Risk amount excluding the variance effect within market-related risk.
(Note 4) ESR=(MCEV + Frictional costs) / Risk amount based on economic value.
Copyright © Sony Financial Holdings Inc. All rights reserved.

40

Operating Performance : AEGON Sony Life Insurance◆AEGON Sony Life Insuranceʼs new policy amount and policy amount in force

Number and Amount of New Policies*1

Number and Amount of Policies in Force*2

New policy amount

Policy amount in force

Number of new policies (Thousands of policies)

Number of policies in force (Thousands of policies)

37.9

519.3

522.7

94.0

94.5

Dec. 18

Mar. 19

35.6

8.0
20.3

542.8
98.8

6.5

4.1

（JPY bn）（JPY bn）

FY17.3Q (9M)

FY18.3Q (9M)

FY19.3Q (9M)

*1 Amounts for FY17.3Q (9M) and FY18.3Q (9M) are individual annuities whileamounts for FY19.3Q (9M) are total of individual insurance and individual
annuities◆Net income (losses) for AEGON Sony Life and SA Reinsurance（JPY bn）

Dec. 19*2 Amounts for as of Dec. 18 are individual annuities while amounts forMar. 19 and Dec. 19 are total of individual insurance and individual
annuities

ChangeFY18.3Q (9M)

FY19.3Q (9M)

AEGON Sony Life

(2.6)

(0.7)

+1.9

SA Reinsurance

1.7

0.2

(1.5)

(Note) AEGON Sony Life Insurance and SA Reinsurance are equity method companies, 50-50 joint venture established by Sony Life and AEGON Group.
SA Reinsurance prepares its financial statements in accordance with U.S. GAAP. 50% of the net income (losses) for AEGON Sony Life Insurance andSA Reinsurance are recognized as investment profit (losses) on equity method in the SFHʼs consolidated net income.
Copyright © Sony Financial Holdings Inc. All rights reserved.

41

Trend on JGB Yields (Par rate)
10 years
20 years

0.70%

30 years
40 years

0.50%

0.30%

0.10%

(0.10%)(0.30%)

10 yearsMar. 19

Apr. 19

May. 19

Jun. 19

Jul. 19

Aug. 19

Sep. 19

Oct. 19

Nov. 19

Dec. 19

Mar. 19

Apr. 19

May 19Jun. 19

Jul. 19

Aug. 19

Sep. 19

Oct. 19

Nov. 19

Dec. 19(0.08%)(0.05%)(0.09%)(0.16%) （0.16%)(0.28%)(0.21%)(0.14%)(0.08%)(0.02%)

20 years

0.34%

0.37%

0.30%

0.23%

0.20%

0.05%

0.20%

0.23%

0.26%

0.28%

30 years

0.51%

0.56%

0.46%

0.36%

0.35%

0.15%

0.36%

0.39%

0.41%

0.41%

40 years

0.58%

0.63%

0.50%

0.41%

0.40%

0.17%

0.43%

0.43%

0.45%

0.44%

Copyright © Sony Financial Holdings Inc. All rights reserved.

42

Trend on Risk-free Rate (Japanese yen/Par rate)

1.60%
1.40%

Mar. 19

1.20%

Sep. 19

1.00%

Dec. 19

Convergence
period: 20 year

0.80%
0.60%
0.40%
0.20%
0.00%
(0.20%)(0.40%)

Last liquid point:
40 year(0.60%)
1 year

10
years

20
years

30
years

40
years

50
years

60
years

70
years

80
years

*For above risk-free rate, we employ the Smith-Wilson method for extrapolation so that the 60-year forward rate will coverage on the UFR (3.5%).
Copyright © Sony Financial Holdings Inc. All rights reserved.

43

Trend on U.S. Dollar Bonds Yields (Par rate)
10 years

3.00%

20 years
30 years

2.60%

2.20%

1.80%

1.40%
Mar. 19

Apr. 19

May. 19

Jun. 19

Jul. 19

Aug. 19

Sep. 19

Oct. 19

Nov. 19

Dec. 19

Mar. 19

Apr. 19

May 19Jun. 19

Jul. 19

Aug. 19

Sep. 19

Oct. 19

Nov. 19

Dec. 19

10 years

2.41%

2.50%

2.13%

2.01%

2.02%

1.50%

1.67%

1.69%

1.78%

1.92%

20 years

2.63%

2.74%

2.38%

2.31%

2.30%

1.77%

1.92%

1.99%

2.07%

2.25%

30 years

2.82%

2.93%

2.57%

2.53%

2.53%

1.96%

2.11%

2.18%

2.21%

2.39%

Copyright © Sony Financial Holdings Inc. All rights reserved.

44

Trend on Risk-free Rate (U.S. Dollar /Par rate)
3.10%
2.90%
2.70%

Convergence
period: 30 year

Mar. 19
Sep. 19
Dec. 19

2.50%
2.30%
2.10%
1.90%
1.70%
Last liquid point:
30 year

1.50%
1 year

10
years

20
years

30
years

40
years

50
years

60
years

70
years

80
years

*For above risk-free rate, we employ the Smith-Wilson method for extrapolation so that the 60-year forward rate will coverage on the UFR (3.5%).
Copyright © Sony Financial Holdings Inc. All rights reserved.

45

Consolidated︓Summary Financial Statements（JPY bn）
Life insurance
business
Non-life
insurancebusiness
Bankingbusiness
Intersegment
adjustments*

FY19.3Q(9M)

Change1,006.6

1,295.1+288.5+28.7%

Ordinary profit

60.1

66.2

+6.1

+10.2%

Ordinary revenues

86.2

90.5

+4.2

+4.9%

7.3

7.6

+0.2

+2.9%

Ordinary revenues

Ordinary profit

33.7

36.7

+2.9

+8.8%

Ordinary profit

7.0

8.1

+1.1

+15.7%

Ordinary revenues

2.6

3.5

+0.9

+34.8%

Ordinary revenues

(0.5)

(0.8)

(0.2)

ー

1,129.3

1,426.0+296.6+26.3%

Ordinary profit

74.0

81.2

+7.1

+9.7%

Profit attributableto owners of theparent

50.4

54.8

+4.3

+8.7％

Ordinary profit
Ordinary revenues

Consolidated

FY18.3Q(9M)*“Intersegment adjustments” is from SFH, the nursing care business, and the venture capital business.
Sony Financial Ventures Inc. is included in the scope of consolidation from FY18.2Q, SFV・GB L.P. is included in
the scope of consolidation from the FY18.4Q and SmartLink Network Europe B.V. is included in the scope of
consolidation from FY19.2Q, respectively.
(Note) Comprehensive income : FY18.3Q (9M): ¥38.5 billion, FY19.3Q (9M): ¥48.5 billion（JPY bn）

Consolidated

Net assets
Total assets

Mar. 19

Dec. 19

Change from Mar. 19

656.8

678.3

+21.5

+3.3%

13,468.2

14,538.3+1,070.1+7.9%

Copyright © Sony Financial Holdings Inc. All rights reserved.

46

Sony Life︓Summary Financial Statements（Non-consolidated）（JPY bn）
Ordinary revenues

FY18.3Q(9M)

FY19.3Q(9M)

ChangeMar. 19（JPY bn）

Dec. 19

Change from Mar. 19

1,006.5

1,295.1+288.6+28.7%

Securities

9,523.8

10,356.5+832.6+8.7%

Income from insurance
premiums

815.8

956.0

+140.2+17.2%

Policy reserves

9,268.4

9,923.0+654.6+7.1%

Investment income

145.4

288.0

+142.5+98.0%Net assets

513.9

518.6

+4.6

+0.9%

122.7

114.5

(8.1)

(6.7%)

10,380.1

11,246.6+866.5+8.3%

1,300.7

1,495.7+195.0+15.0%

FY18.3Q(9M)

FY19.3Q
(9M)

135.8

108.3

Interest income
and dividends

124.4

134.5

+10.1

+8.1%

Gains on sale ofsecurities

4.5

2.9

(1.6)

(35.0%)

Foreign exchange
gains, net

13.1

Gains on separate
accounts, net−(13.1)(100.0%)−147.0+147.0−945.9

1,228.5+282.6+29.9%

Insurance claims andother payments

344.3

379.8

+35.5

+10.3%

Provision for policy
reserves and others

423.6

655.5

+231.8+54.7%

Investment expenses

32.4

32.7

+0.3

+1.0%

7.0

19.5

+18.7

−

Ordinary expenses

Losses onderivatives, net
Foreign exchange
losses, net
Losses on separate
accounts, net
Operating expenses

ー

3.1

+3.1

−

22.7

−

(22.7)(100.0％)

107.1

114.8

+7.6

+7.1%

Ordinary profit

60.5

66.6

+6.0

+10.0%Net income

41.5

45.0

+3.4

+8.3%

Net unrealized gains
on other securities
Total assets
Separate accountassets（JPY bn）
Gains from investment,net (General account)

Change(27.5)(20.3%)

Copyright © Sony Financial Holdings Inc. All rights reserved.

47

Sony Assurance︓Summary Financial Statements(Underwriting Performance by Type of Policy)
Direct Premiums Written *Medical insurance is included in personal accident.

FY18.3Q(9M)

FY19.3Q(9M)

Ordinary revenues

86.2

90.5

+4.2

+4.9%

Underwriting
income

84.7

88.8

+4.1

+4.9%

（JPY bn）

Change（JPY mn）

Investment
income

1.5

1.6

+0.1

+7.7%

Ordinary expenses

78.9

82.9

+4.0

+5.1%

Underwriting
expenses

58.4

61.3

+2.9

+5.1%

Operating, generaland administrative
expenses

20.4

21.5

+1.0

+5.2%

7.3

7.6

+0.2

+2.9%

5.9

6.0

+0.1

+1.9%

5.2

5.4

+0.1

+2.6%

Mar. 19

Dec. 19

Ordinary profit
Underwriting
incomeNet income（JPY bn）

Change from
Mar. 19

Underwriting reserves

127.8

135.9

+8.1

+6.4%

Net assets

34.7

37.4

+2.6

+7.7%

Total assets

219.6

224.8

+5.2

+2.4%

Fire

FY18.3Q(9M)
244

MarineFY19.3Q(9M)

Change1,408＋475.4%−−ー

Personal accident

6,576

6,958

＋5.8%

Voluntary automobile

77,10380,184

＋4.0%

−

−

ー

83,92488,551+5.5%

Compulsory automobile liability
Total

Net Premiums Written（JPY mn）

FY18.3Q(9M)

FY19.3Q(9M)

Change

Fire

68

793

Marine

(0)

0

ー
ー

Personal accident

6,653

6,769

+1.7%

Voluntary automobile

76,86579,964+4.0%

Compulsory automobile liability

1,110

1,292

+16.3%

Total

84,69988,818+4.9%

Net losses paid
（JPY mn）

FY18.3Q(9M)

FY19.3Q(9M)

Change

Fire

11

101

Marine10(3)+813.2%ー

Personal accident

2,218

2,389

+7.7%

Voluntary automobile

38,76041,465+7.0%

Compulsory automobile liability

1,030

1,015

(1.5%)

Total

42,03144,968+7.0%

Copyright © Sony Financial Holdings Inc. All rights reserved.

48

Sony Bank︓Summary Financial Statements(Balance of Securities by Credit Rating)◆ Consolidated（JPY bn）

FY18.3Q(9M)

FY19.3Q(9M)

ChangeOrdinary revenues

33.7

36.7

+2.9

+8.8%

Ordinary profit

7.0

8.1

+1.1

+15.7%

Profit attributable toowners of the parent

4.6

5.4

+0.7

+15.7%◆ Non-consolidated（JPY bn）

FY18.3Q(9M)

FY19.3Q(9M)◆ Balance of Securities by Credit Rating（Non-consolidated）

ChangeOrdinary revenues

30.5

33.1

+2.5

+8.5%

Gross operating profit

17.9

19.6

+1.6

+9.4%

Net interest income

17.2

18.3

+1.1

+6.5%

Net fees andCommissions

(2.3)

(1.2)

+1.1

−

Net other operating
income

3.0

2.5

(0.5)

(18.0%)

General andadministrative expenses

11.7

12.5

+0.8

+7.1%

Net operating profit

6.2

7.1

+0.9

+14.7%

Ordinary profit

6.3

7.3

+0.9

+14.5%Net income

4.4

5.0

+0.6

+14.5%（JPY bn）
Net assets
Net unrealized gains
on other securities, netof taxes
Total assets

Mar. 19

Dec. 19

Change from
Mar. 19

Mar. 19

Dec. 19

AAA

296.6

329.3

+32.6

+11.0%

AA

77.3

62.4

(14.8)(19.2%)

A

288.0

306.4

+18.4

+6.4％

BBB

24.4

30.6

+6.2

+25.4％（JPY bn）

Others

10.0

7.1

(2.8)

(28.2%)

Total

696.4

736.1

+39.7

+5.7%

Change from
Mar. 19

87.2

90.5

+3.2

+3.7%

3.9

4.5

+0.5

+14.4%

2,860.9

3,060.0+199.1+7.0%
Copyright © Sony Financial Holdings Inc. All rights reserved.

49

Sony Bank︓Operating Performance(On Managerial Accounting Basis)◆ On Managerial Accounting Basis・ Net interest income︓Increased due to an increase of interest income in investment securities and onloans in line with a growing balance of mortgage loans.
・ Net fees and commissions︓Improved due to an increase of mortgage loansʼ fees and commissions.
（JPY bn）
Gross operating profit

FY18.3Q(9M)

FY19.3Q(9M)＜Reference＞

Change

17.9

19.6

+1.6

+9.5%

Net interest income*1 ①

18.9

19.7

+0.7

+4.1%

Net fees andcommissions*2

(1.9)

(0.9)

+1.0

−

Net other operating
income*3

0.9

0.8

(0.1)

(14.2%)

Gross operating profit(core profit)(A) ＝①＋②

16.9

18.8

+1.8

+10.8%

Operating expenses andother Expenses ③

11.7

12.5

+0.7

+6.6%

Net operating profit(core profit) ＝(A)−③

5.2

6.2

+1.0

+20.2%②

Yield on investment■Core profit
Profits and losses exclude net other operating income, which includes those on bond andderivative dealing transactions, and stands for Sony Bankʼs basic profits.

Yield on financing

1.18

0.92

■Managerial accounting basis
The following adjustments are made to the figures on a financial account for profits andlosses more appropriately.
*1: Net interest income: Includes profits and losses associated with fund investment
recorded in net other operating income, including gains or losses from currency swap
transactions.
*2: Net fees and commissions: Includes profits and losses for customer dealings in foreign
currency transactions recorded in net other operating income.
*3: Net other operating income: After the above adjustments (*1 and *2), mainly consistsof profits and losses for bond and derivative dealing transactions.

Interest Spread(Managerial Accounting Basis)

0.26

Interest spread

1.18(0.03pt)

0.89

0.29

（%）

FY18.3Q (9M)

FY19.3Q (9M)

Note: Interest spread=(Yield on investment)-(Yield on financing)

Copyright © Sony Financial Holdings Inc. All rights reserved.

50

Contact︓
Investor Relations Department
Sony Financial Holdings Inc.
TEL︓+81-3-5290-6500