November 12, 2018
Sony Financial Holdings Inc.

Summary Information on Sony Life’s Financial Results
for the Six Months Ended September 30, 2018
<Contents>
1. Key Operating Performance

P. 2

2. Status of Investment Assets (General Account)

P. 3

3. Non-consolidated Balance Sheets

P. 9

4. Non-consolidated Statements of Income

P. 10

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

P. 11

6. Loans by Borrower Category

P. 12

7. Risk-monitored Loans

P. 12

8. Solvency Margin Ratio

P. 13

9. Status of Separate Account Assets

P. 15

10.

P. 15

Consolidated Summary

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

11. Key Operating Performance(1) Policy Amount in Force and New Policy Amount
Policy amount in force(Number: Thousand, Amount: 100 millions of yen, %)As of September 30, 2017

As of March 31, 2018

As of September 30, 2018

Category

Individual life insurance

NumberAmount7,202

450,687

Individual annuities

NumberAmount7,316

NumberComparison to Comparison to
Sep. 30, 2017 Mar. 31, 2018

7,408

458,924

102.9

101.3

AmountComparison to Comparison to
Sep. 30, 2017 Mar. 31, 2018

469,049

104.1

102.2

218

11,503

252

13,609

289

132.5

114.6

16,017

139.2

117.7

7,421

462,191

7,569

472,534

7,697

103.7

101.7

485,066

104.9

102.7

Group life insurance－

18,873－

19,201－－－

19,434

103.0

101.2

Group annuities

－

107

－

100

－

－

－

93

86.9

93.0

Subtotal

Notes: 1. The policy amount in force for individual annuities is equal to the sum of (a) the funds to be held at the time annuity payments are to commence for policies for which annuity payments have not yet commencedand (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 policy reserves.

New policy amount(Number: Thousand, Amount: 100 millions of yen, %)For the six months ended September 30, 2017

For the six months ended September 30, 2018

Category
NumberAmountIndividual life insurance

215

Individual annuities
Subtotal

NumberAmountComparison to
FY17.2Q

Comparison to
FY17.2Q

New policies

28,999139.1

28,999

－

164.0

2,597

178.8

2,597

－
－

New policies

Increase fromconversion

20,85420,854

－

253

117.4

24

1,452

1,452

－

39

－

240

22,30722,307293

122.1

31,597141.6

31,597

Group life insurance

－

397

397

－

－

117

29.7

117

Group annuities

－

－

－

－

－

－

－

－

Increase fromconversion

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 payments.

(2) Annualized Premiums
Policy amount in force
Category
Individual life insurance
Individual annuities(Millions of yen, %)As of
September 30, 2017

As ofMarch 31, 2018

797,006

As of
September 30, 2018807,437

817,912Comparison to
Sep. 30, 2017

Comparison to
Mar. 31, 2018

102.6

101.3

36,502

41,38646,756

128.1

113.0

Total

833,509848,823

864,668

103.7

101.9

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

189,603

191,895

194,918

102.8

101.6

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

For the six months ended
September 30, 2017

28,801For the six months ended
September 30, 2018

Comparison to
FY17.2Q

31,973

111.0

3,590

6,015

167.5

Total

32,391

37,989117.3

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

5,991

7,311

122.0

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. Annualized premiums for “medical protection, living benefit protection and other products” include those for medical protection benefits (hospitalization benefits, surgical procedure
benefits, etc.) and living benefit protection (benefits for specific illness, nursing care benefits, etc.).

2

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

Investment Environment
During the six months ended September 30, 2018, the Japanese economy grew gradually. Labor shortage countermeasures,increasing capital investment aimed at raising productivity and rising exports thanks to recovery in the overseas economy allcontributed to continued economic expansion. Individual demand factors were personal consumption, which was up 0.7%, andcapital investment, up 3.1%. Looking at commodity prices, the core consumer price index was up 1.0% in September, year on
year, marking 21 consecutive months of expansion. Real GDP growth1 for the April–June quarter continued to be high at 0.7%
compared with the previous quarter (annualized rate of 3.0%).

Bond markets suffered a slump while yields on 10-year Japanese government bonds (JGBs) remained within the narrow
range of 0.022%–0.062% from April to mid-July under the Bank of Japan’s (BOJ’s) yield curve control policy. In late July,bond markets faced further sell-off and long-term interest rates climbed sharply in response to reports that the BOJ would
soften its target rate of “about 0%.” As of September 30, 2018, the long-term interest rate was 0.134%, up 0.091 percentage
points from March 31, 2018.

Stock market performance was up but was weighed down by trade friction between the US and China, geopolitical risks andmonetary instability in emerging countries, struggling along in the range between ¥21,500 and around ¥23,000 from April until
early September. In late September, the sense of unease abated as cabinet-level talks between the US and China were reopened
and the Central Bank of the Republic of Turkey raised interest rates to degrees that greatly exceeded market expectations. These
factors, combined with steady US employment statistics and favorable corporate performance in the US and Japan, contributed
to a rise in the Nikkei Stock Average. As of September 30, 2018, the Nikkei was ¥24,120.04, up ¥2,665.74 from March 31,
2018.

Foreign exchange markets were unstable and trended toward a weak yen. Temporary yen appreciations occurred in late May,as political instability sprung up in Italy and the United States and North Korea cancelled their summit; in July, in response toreports that the BOJ would cut back on quantitative easing; and in August, amid unrest in Turkey and concerns about monetary
instability in emerging countries. However, the yen generally trended toward depreciation during the whole period from April
to September, supported by a rising US interest rate and a stable US stock market. As of September 30, 2018, the exchange rate
was ¥113.57 to the US dollar, with the yen finishing lower than its March 31, 2018 level of ¥106.24 to the US dollar.

1

2nd preliminary figures3

(ii) Investment Policy
Sony Life’s investment policy is based on asset liability management (ALM), a strategy stemming from anunderstanding 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 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 suchas equities.

(iii) Results of Investment
As of September 30, 2018, general account assets totaled ¥8,780.7 billion, up 4.1%, or ¥341.8 billion, from previous
fiscal year ended March 31, 2018. Within general account assets, Japanese bonds investment totaled ¥7,516.1 billion(accounting for 85.6% of total general account assets), foreign bonds ¥476.3 billion (5.4%), Japanese stocks ¥35.2 billion(0.4%), money held in trust ¥267.0 billion (3.0%), policy loans ¥193.6 billion (2.2%), real estate ¥91.5 billion (1.0%), andcash and cash deposits and call loans ¥58.3billion (0.7%).

4

(2) Portfolio of General Account Assets(Millions of yen)
Category

As of March 31, 2018
AmountCash and deposits, call loans
Securities repurchased under resale agreements
Pledged money for bond borrowing transaction
Monetary claims purchased
Securities under proprietary accounts
Money held in trust
Securities
Japanese bonds
Japanese stocks
Foreign securities

As of September 30, 2018%

40,862－－－－
270,582
7,717,905
7,281,144
38,464
396,910366,571
30,3391,385
189,486
92,346
10,787
117,195(295)
8,438,872
409,863

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

0.5
－
－
－
－
3.2
91.5
86.3
0.5
4.7
4.3
0.4
0.0
2.2
1.1
0.1
1.4
(0.0)
100.0
4.9

Amount58,390－－－－267,0818,055,359
7,516,151
35,239502,858
476,333
26,524
1,109
193,651
91,544
15,542
99,431(296)
8,780,704
501,410

%
0.7
－
－
－
－
3.0
91.7
85.6
0.4
5.7
5.4
0.3
0.0
2.2
1.0
0.2
1.1
(0.0)
100.0
5.7

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

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

Category

For the six months ended
September 30, 2017

Cash and deposits, call loans
Securities repurchased under resale agreements
Pledged money for bond borrowing transaction
Monetary claims purchased
Securities under proprietary accounts
Money held in trust
Securities

For the six months ended
September 30, 2018
3,698

－
－
－
－
(1,937)
234,971
202,402(3,483)36,152
34,405
1,746
(99)
4,189
(861)
273
(197)
(5)
240,129
34,291

Japanese bonds
Japanese stocks
Foreign securities
Bonds
Stocks, etc.
Other securities
Loans
Real estate
Deferred tax assets
Other assets
Reserve for possible loan losses
Total
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.

517,528－－－－(3,500)337,453
235,007(3,225)
105,948
109,762(3,814)
(276)
4,164
(802)
4,754
(17,764)(1)
341,831
91,547

(4) Investment Income(Millions of yen)

Category

For the six months ended
September 30, 2017

Interest income and dividends

For the six months ended
September 30, 201878,24181,79800Interest income and dividends on securities

69,30973,784

Interest income from loans

3,285

3,396

Rent revenue from real estate

5,455

4,347

191

269

Interest income from deposits

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

Income from money held in trust, net

2,246

2,246

Income from trading securities, net

22－

Gains on sale of securities

0

3,316

Gains on sale of Japanese bonds

0－

Gains on sale of Japanese stocks, etc.

－

3,316

Gains on sale of foreign securities－－

Others－－1－

Gains on redemption of securities
Gains on derivatives, net

－

－

2,078

21,398

Reversal of reserve for possible loan losses－－

Other investment income

0－82,591

108,760

Foreign exchange gains, net

Total(5) Investment Expenses(Millions of yen)

Category

For the six months ended
September 30, 2017

For the six months ended
September 30, 2018

Interest expenses

35

577

Losses on securities under proprietary accounts－－

Losses on money held in trust, net－－

Losses on trading securities, net－

11

Losses on sale of securities

034

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

－

34

Losses on sale of foreign securities

00

Others

－

－

－

4,026

Devaluation losses on Japanese bonds－－

Devaluation losses on Japanese stocks, etc.

－－

Devaluation losses on foreign securities

－

4,026

Others－－2－

Losses on derivatives, net

14,73919,704Foreign exchange losses－－

Devaluation losses on securities

Losses on redemption of securities

Provision for reserve for possible loan losses

5

1

Write-off of loans－－

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

6

925

800

2,462

1,485

18,171

26,642

(6) Valuation Gains (Losses) on Trading-purpose Securities(Millions of yen)
As of March 31, 2018

Category

As of September 30, 2018

Net valuation gains (losses) recorded inincomeBalance sheet amount

(31)

－

Trading-purpose securities

Net valuation gains (losses) recorded inincomeBalance sheet amount

1,446

(35)

(7) Fair Value Information on Securities
a. Securities with fair value (except trading-purpose securities)(Millions of yen)
As of March 31, 2018
Category

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

As of September 30, 2018

Net unrealized gains (losses)

Carrying
amountFair value

6,467,997

8,050,644

401,958

436,842－Net unrealized gains (losses)

Carrying
amountFair value

Unrealized
gains

Unrealized
losses

Unrealized
gains

Unrealized
losses

1,582,646

1,640,383

57,736

6,663,424

7,961,229

34,88435,9391,055

522,972

540,884

1,297,804

1,401,377

103,572

17,912

26,026

－

－

－

－

－

8,114

－

－

－

921,995

1,091,187

169,192

172,541

3,349－

955,104

1,107,701

152,597

155,526

2,929
257

Japanese bonds

847,062

1,002,106

155,044

155,044－862,722

1,002,314

139,591

139,849

Japanese stocks

13,68530,66816,982

17,00825

11,26425,996

14,731

14,74715

Foreign securities

61,081

58,125(2,955)

368

3,323

80,95179,098△ 1,853

803

2,656

Bonds

49,39846,689(2,709)

368

3,077

73,16371,310△ 1,853

803

2,656

Stocks, etc.

11,682

11,436

(245)

－

245

7,788

7,788

－

－

－

Other securities

165

286

120

120

－

165

292

126

126

－

Monetary claims purchased

－

－

－

－

－

－

－

－

－

－

Certificates of deposit

－

－

－

－

－

－

－

－

－

－

Others

－

－

－

－

－

－

－

－

－

－

Total

7,791,950

9,578,673

1,786,723

1,848,865

62,1428,141,501

9,609,815

1,468,313

1,582,930

114,616

Japanese bonds

7,397,136

9,185,284

1,788,148

1,827,186

39,0377,644,096

9,135,417

1,491,321

1,565,687

74,365

Japanese stocks

13,68530,66816,982

17,00825

11,26425,996

14,731

14,74715

Foreign securities

380,962

362,434(18,528)

4,550

23,078

485,975

448,109(37,866)

2,369

40,235

Bonds

369,280

350,998(18,282)

4,550

22,832

478,186

440,320(37,866)

2,369

40,235

Stocks, etc.

11,682

11,436

(245)

－

245

7,788

7,788

－

－

－

Other securities

165

286

120

120

－

165

292

126

126

－

Monetary claims purchased

－

－

－

－

－

－

－

－

－

－

Certificates of deposit

－

－

－

－

－

Others

－

－

－

－

－

－
－

－
－

－
－

－
－

－
－

Notes:
1. The above table includes assets that are permitted to be treated as equivalent to securities defined in the Financial Instruments and Exchange Act of Japan.
2. Carrying amount and net unrealized gains (losses) on money held in trust, including items other than trading-purpose securities, amounted to ¥232,484 million and ¥38,552 million as of March 31,2018,
respectively, and amounted to ¥232,525 million and ¥35,010 million as of September 30, 2018, respectively.

b. Carrying amounts of securities for which fair value cannot be measured reliably
Category(Millions of yen)
As of
September 30, 2018

As ofMarch 31, 2018

Held-to-maturity securities－－

Unlisted foreign bonds－－

Others－－－－Stocks of subsidiaries and affiliated companies

15,92615,926

Available-for-sale securities

7,719

6,793

Policy-reserve-matching bonds

Unlisted domestic stocks (except OTC stocks)

159

159

Unlisted foreign stocks (except OTC stocks)

590

603

Unlisted foreign bonds
Others
Total

－

－

6,968

6,030

23,64522,7197

c. Fair Value information consisting of those stated in the previous Table a. and Table b. after evaluating foreign exchange and other gains (losses)(Millions of yen)
As of March 31, 2018
Category

Held-to-maturity securities

As of September 30, 2018

Net unrealized gains (losses)

Carrying
amountFair value

Unrealized
gains

Unrealized
lossesNet unrealized gains (losses)

Carrying
amountFair value

Unrealized
gains

Unrealized
losses6,467,997

8,050,644

1,582,646

1,640,383

57,736

6,663,424

7,961,229

1,297,804

1,401,377

103,572

Policy-reserve-matching bonds

401,958

436,842

34,88435,9391,055

522,972

540,884

17,912

26,026

8,114

Stocks of subsidiaries and affiliated companies

15,92615,926－－－15,92615,926－－－

Available-for-sale securities

929,714

1,103,060

173,345

176,918

3,572

961,898

1,119,125

157,226

160,313

3,086

Japanese bonds

847,062

1,002,106

155,044

155,044－862,722

1,002,314

139,591

139,849

257

Japanese stocks

13,84530,82816,982

17,00825

11,424

26,156

14,731

14,74715

Foreign securities

61,671

59,702(1,968)

1,354

3,323

81,55580,807

(748)

1,907

2,656

Bonds

49,39846,689(2,709)

368

3,077

73,16371,310(1,853)

803

2,656

Stocks, etc.

12,27313,013

740

986

245

8,392

9,497

1,104

1,104

－

Other securities

7,134

10,422

3,287

3,510

222

6,195

9,847

3,651

3,808

157

Monetary claims purchased

－

－

－

－

－

－

－

－

－

－

Certificates of deposit

－

－

－

－

－

－

－

－

－

－

Others

－

－

－

－

－

－

－

－

－

－

7,815,596

9,606,473

1,790,876

1,853,241

62,365

8,164,221

9,637,165

1,472,943

1,587,717

114,773
74,365

Total
Japanese bonds

7,397,136

9,185,284

1,788,148

1,827,186

39,0377,644,096

9,135,417

1,491,321

1,565,687

Japanese stocks

21,482

38,464

16,982

17,00825

19,06133,792

14,731

14,74715

Foreign securities

389,842

372,301(17,541)

5,536

23,078494,868

458,107(36,761)

3,474

40,235

Bonds

369,280

350,998(18,282)

4,550

22,832

478,186

440,320(37,866)

2,369

40,235

Stocks, etc.

20,562

21,302

740

986

245

16,681

17,786

1,104

1,104

－

Other securities

7,134

10,422

3,287

3,510

222

6,195

9,847

3,651

3,808

157

Monetary claims purchased

－

－

－

－

－

－

－

－

－

－

Certificates of deposit

－

－

－

－

－

－

－

－

－

－

Others

－

－

－

－

－

－

－

－

－

－

(8) Fair Value Information on Money Held in Trust (General Account)(Millions of yen)
As of March 31, 2018
Category

Money held in trust

As of September 30, 2018

Net unrealized gains (losses)

Balance sheet
amountFair value

270,582

270,582

Unrealized
gains

Unrealized
losses－－－Net unrealized gains (losses)

Balance sheet
amountFair value

267,081

267,081

Unrealized
gains

Unrealized
losses－－－Note: The above table includes ¥40 million of jointly invested money held in trust, as of March 31, 2018 and September 30, 2018, respectively.

Money held in trust for investment
Not applicable(Millions of yen)

Money held in trust for held-to-maturity, policy-reserve-matching and other
As of March 31, 2018
Category

Carrying
amountAs of September 30, 2018

Net unrealized gains (losses)
Fair value

Unrealized
gains

Unrealized
lossesCarrying
amountNet unrealized gains (losses)
Fair value

Unrealized
gains

Unrealized
lossesMoney held in trust for held-to-maturity

－

－

－

－

－

－

－

－

－

－

Money held in trust for policy-reserve-matching

－

－

－

－

－

－

－

－

－

－

231,989

270,541

38,55238,552－232,030

267,040

35,01035,010－

Other money held in trust83. Non-consolidated Balance Sheets(Millions of yen)
As ofMar. 31, 2018

As of
Sep. 30, 2018

AmountAmountAssets:Cash and deposits
Deposits
Call loans
Money held in trust
Securities
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Japanese stocks
Foreign securities
Other securities
Loans
Policy loans
Commercial loans
Tangible fixed assets
Land
Buildings
Leased assets
Other tangible fixed assets
Intangible fixed assets
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
Cash collateral paid for financial instruments
Derivative
Advance payments
Others
Prepaid pension costs
Deferred tax assets
Reserve for possible loan losses

53,68353,68365,500270,582
8,765,967
6,966,434
1,543
461,01588,376959,188289,408
189,486
189,460
25
93,16962,25930,087
5
816
23,21023,2018
929
92,18437,411
1,983
19,627
5,428
18,324
892
－
7,969
470
75
2,483
10,787(295)

57,43357,43386,200267,0819,257,803
7,138,075
1,533
519,229
88,9901,186,418
323,554
193,651
193,633
17
92,31062,25929,284
3762
23,01923,011
8
682
74,52637,076
2,738
20,220
5,427
2,377
3,824
2,320
－
466
74
2,631
15,542(296)

Total Assets

9,567,689

10,070,585

9

As of
Mar. 31, 2018

As of
Sep. 30, 2018

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

8,606,736
35,1768,566,075
5,484
1,873
5,497
386,099
31,696
303,889
13,4783,249
20,325
764
1,237
4,202
2,194
1,410
6
1,856
1,787
26,65647,92947,929109

9,033,479
38,9038,989,226
5,349
1,646
4,997
473,795
57,115367,095
11,3402,901
17,637
788
1,265
4,204
－
8,187
4
1,857
1,395
27,287
48,967
48,967
109

Total Liabilities

9,074,902

9,590,282

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

70,0005,865
5,865
294,424
34,938259,486
259,486
370,289
124,936(2,439)122,497492,787
9,567,689

70,0005,865
5,865
293,615
40,188
253,426
253,426
369,480
113,261(2,439)110,822480,302
10,070,585

4. 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 on securities
Interest income from loans
Rent revenue from real estate
Other interest income and dividends
Income from money held in trust, net
Gains on trading securities, net
Gains on sale of securities
Gains on redemption of securities
Foreign exchange gains, net
Other investment income
Gains on separate accounts, net
Other ordinary income
Income for annuity riders
Proceeds from deferred insurance
Other ordinary income
Ordinary Expenses
Insurance claims and other payments
Insurance claims
Annuity payments
Insurance benefits
Surrender payments
Refund to policyholders
Reinsurance premiums
Provision for policy reserves and others
Provision for reserve for outstanding claims
Provision for policy reserves
Interest portion of reserve on policyholders' dividends
Investment expenses
Interest expenses
Losses on on trading securities, net
Losses on sale of securities
Devaluation losses on securities
Losses on redemption of securities
Losses on derivatives, net
Provision for reserve for possible loan losses
Depreciation of real estate for rent and others
Other investment expenses
Operating expenses
Other ordinary expenses
Deferred insurance payments
Taxes
Depreciation and amortization
Provision for reserve for employees' 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 losses 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, 2017

For the six months ended
September 30, 2018

AmountAmount632,357
480,491
479,458
1,033
145,196
78,241069,309
3,285
5,455
191
2,246
22
0
1
2,078
0
62,605
6,670
2,298
2,448
1,922
606,285
187,384
45,157
5,618
40,40090,1591,673
4,375
317,735
1,104
316,630018,17135－
0－
2
14,7395
925
2,462
68,157
14,836
4,512
6,016
2,642
1,661
4
26,072
3,640
3,640
5,083
2
0
904
904
4,176
297
24,331
8,173
(829)
7,344
16,986

10779,298
542,005
540,877
1,128
231,423
81,798073,784
3,396
4,347
269
2,246
－
3,316
－
21,398－
122,663
5,868
1,943
2,918
1,006
741,550
200,482
45,222
6,347
43,073
98,856
1,928
5,054
426,877
3,726
423,150
026,642
577
11
34
4,026
－
19,7041800
1,485
71,47816,068
5,555
6,440
2,974
1,079
18
37,747
－
－
1,078
30
10
1,038
1,038
－
62
36,606
11,476(310)
11,16625,4405. Reconciliation to Core Profit and Non-consolidated Ordinary Profit(Millions of yen)
For the six months ended
September 30, 2017
Core profit

A

Capital gains

For the six months ended
September 30, 2018

43,89857,8682,098

24,715

Income from money held in trust, net－－

Income from trading securities, net

19－

Gains on sale of securities

0

3,316

Gains on derivatives, net

－

－

2,078

21,398－－Foreign exchange gains, net
Other capital gains
Capital losses

16,25740,355Losses on money held in trust, net－－

Losses on trading securities, net－

19

Losses on sale of securities

034

Devaluation losses on securities

－

4,026

14,73919,704－－Losses on derivatives, net
Foreign exchange losses, net

1,518

16,570Net capital gains (losses)

Other capital losses
B(14,159)(15,639)

Core profit plus net capital gains (losses)

A+B

29,73942,228－－

Gains from reinsurance－－

Reversal of contingency reserve－－

Reversal of specific reserve for possible loan losses－－

Other one-time gains

OthersOther one-time losses

－

－

3,666

4,481

－

－

Losses from reinsurance
Provision for contingency reserve

3,613

4,410

Provision for specific reserve for possible loan losses

3

1

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

Write-off of loans－－

OthersNet other one-time gains (losses)
Ordinary profit

49

69

C

(3,666)(4,481)

A+B+C

26,07237,747(Reference) The breakdown of Others
For the six months ended
September 30, 2017
Core profit
Income gains in income from money held in trust
Interest income and dividends in income from trading securities
Effects of currency market fluctuations of products dominated in foreign currencies (note)
Other capital gains
Effect of change in the exchange rates related to foreign-currency-denominated insurance contracts
Other capital losses

For the six months ended
September 30, 2018

2,249

18,824

2,246

2,246

3

7

－

16,570

－

－

－

－

1,518

16,570

Impairment losses from investment partnership

664－

Effect of change in the exchange rates related to foreign-currency-denominated insurance contracts

853

16,570"Others" of other one-time gains－－"Others" of other one-time losses

49

69

49

69

Provision of additional policy reserve

Note: Beginning from disclosures for the fiscal year ending March 31, 2019, the disclosure method of the breakdown of core profit relating to the effect of change in the exchange rates related toforeign-currency-denominated insurance contracts have been modified. Although, this change has no impact on core profit.

11

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

As of March 31, 2018

As of September 30, 2018

Bankrupt and quasi-bankrupt loans－－

Doubtful loans－－

Sub-standard loans

－

－

－

－

[－]

[－]

428,359

486,690428,359

486,690

Subtotal[% to total]
Normal loans
Total
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 loans that do not fall under the classifications for 1. to 3. above and where the borrowers have no financial or business performance
problems.

7. Risk-monitored Loans
Not applicable128. Solvency Margin Ratio(Millions of yen)

Category

As of March 31, 2018

Total solvency margin(A)

As of September 30, 2018

1,233,854

1,290,359

Common stock, etc.

344,039

367,906

Reserve for price fluctuations

47,92948,967

Contingency reserve

89,91594,3250

1

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

156,011

141,503

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

29,83029,830

－

－

377

1,926

Deferred tax assets

88,661

97,942

Excess amount of policy reserves based on Zillmer method

525,389

536,084－－

The portion of the excess amount of policy reserves based on Zillmer method andsubordinated debt that is not included in the margin(43,128)(22,957)

Deductible items(5,171)(5,171)(B)

94,03098,540Insurance risk

R1

24,337

24,468

Third-sector insurance risk

R8

8,587

8,545

Assumed interest rate risk

R232,452

33,243

Minimum guarantee risk

R7

20,137

21,745

Asset management risk

R332,95335,235Business management risk

R4

2,369

2,464

2,624.3%

2,618.9%

General reserve for possible loan losses

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

Subordinated debt

Total risk

(R1  R8 ) 2  (R2  R3  R7 ) 2  R4

Solvency margin ratio
(A)/

B

100

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

13

(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, 2018

Total solvency margin(A)

As of September 30, 2018

1,217,876

1,274,198

Common stock, etc.

340,820364,254

Reserve for price fluctuations

47,92948,967

Contingency reserve

89,91594,325

Catastrophe reserve－－

General reserve for possible loan losses

01

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

156,011

141,503

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

29,83029,830Total amount of unrecognized net actuarial gains (losses) and unrecognized past
service cost

(2,419)(2,064)

－

－

377

1,926

Deferred tax assets

88,661

97,942

Excess amount of policy reserves based on Zillmer method

525,389

536,084

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

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(46,347)(26,609)

Deductible items(12,290)(11,964)(B)

91,362

95,855

Insurance risk

R1

24,337

24,468

Ordinary insurance risk

R5

－

－

Major catastrophe risk

R6

－

－

Third-sector insurance risk

R8

8,587

8,545

Insurance risk of small-amount short-term insurance providers

R9

－

－

Assumed interest rate risk

R232,452

33,243

Minimum guarantee risk

R7

20,137

21,745

Asset management risk

R330,14932,430Business management risk

R4

2,313

2,408

2,666.0%

2,658.5%

Total risk

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

Solvency margin ratio
(A)/

B

100

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

14

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

Category

As of March 31, 2018

Individual variable life insurance and individual variable annuities

As of September 30, 2018

1,128,817

1,289,881－－

1,128,817

1,289,881

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)(Number: Thousand, Amount: Millions of yen)

Individual variable life insurance
As of March 31, 2018

Category

NumberAs of September 30, 2018

AmountNumberAmountVariable life insurance (whole life type)843

8,384,508

839

8,214,979

Variable life insurance (limited term type)122

628,240

137

789,9246

301,2188

461,437972

9,313,967

986

9,466,341

Variable life insurance (term type)
Total
Note: Amounts include the rider portion of variable life insurance.

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

As of March 31, 2018

Category

NumberIndividual variable annuities

As of September 30, 2018

Amount162

945,144

NumberAmount199

1,187,404

Note: The amount of individual variable annuities is equal to the sum of (a) the funds to be held at the time annuity payments are to commence for policies for which annuity
payments have not yet commenced and (b) the amount of policy reserves for policies for which payments have commenced.

10. Consolidated Summary
Not applicable15