2020
Financial Data Book

April 1, 2019 March 31, 2020

Contents

SFH Financial Data (Consolidated)

Sony Assurance Financial Data

1 Principal Indicators of Operating Performance
2 Consolidated Balance Sheets
4 Consolidated Statements of Income andConsolidated Statements of Comprehensive Income
7 Consolidated Statements of Changes in Net Assets
9 Consolidated Statements of Cash Flows

62
64
65
67
69
69
69
72
74

Sony Life Financial Data (Non-consolidated)
10
12
15
19
19
19
24

Balance Sheets
Statements of Income
Statements of Changes in Net Assets
1. Loans by Borrower Category
2. Risk-monitored Loans
3. Accounting Indicators
4. Reconciliation to Core Profit andNon-consolidated Ordinary Profit
26 5. Fair Value Information on Securities(General Account)
31 6. Fair Value Information on Securities(Company Total)

Sony Life Financial Data (Consolidated)
37 Consolidated Balance Sheet
38 Consolidated Statement of Income

Sony Life Performance Indicators (Non-consolidated)
39
40
47
48
56
57
57
59
60
61
61

1. Key Performance Indicators for Past Five Years
2. Key Performance Indicators
3. Indicators for Insurance Policies
4. Indicators Related to Asset Management(General Account)
5. Status of Insurance Claims Paying Ability
6. Balance of Separate Account Assets
7. Investment Progress of Separate Account
Assets in Individual Variable Life Insurance
and Individual Variable Annuities
8. Status of Individual Variable Life Insurance
and Individual Variable Annuities
9. Number of Agencies
10. Number of Employees and Recruits
11. Average Salary

Annual Report

April 1, 2019 March 31, 2020

The Financial Data Book and Annual
Report are available only on SFHʼswebsite.
005_0344701372008.indd

22020/09/24■ Sony Assurance Performance Indicators
75
76
78
80

1. Principal Indicators of Operating Performance
2. Underwriting Performance
3. Asset Management
4. Non-consolidated Solvency Margin Ratio■ Sony Bank Financial Data (Consolidated)
82
83
83
84
86

Consolidated Balance Sheets
Consolidated Statements of Income
Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets
Consolidated Statements of Cash Flows

Sony Bank Financial Data (Non-consolidated)
87
89
90
93
93
93
97

Balance Sheets
Statements of Income
Statements of Changes in Net Assets
1. Loans by Borrower Category
2. Risk-monitored Loans
3. Profit and Loss
4. Fair Value Information

Sony Bank Performance Indicators (Non-consolidated)
101
101
102
104

1. Key Performance Indicators
2. Status of Operations (Deposits)
3. Status of Operations (Loans)
4. Status of Operations (Securities)

Sony Life MCEV
106 MCEV Results for Sony Life as of March 31, 2020

2020

Annual Report

Balance Sheets
Statements of Income
Statements of Changes in Net Assets
Statements of Cash Flows
1. Loans by Borrower Category
2. Risk-monitored Loans
3. Assets and Liabilities
4. Profit and Loss
5. Fair Value Information, etc.

18:52:19https://www.sonyfh.co.jp/en/financial_info/annualreport• Unless otherwise indicated, figures less than the indicated unit inthis material have been truncated, while ratios and percentagechanges have been rounded off.
• Fiscal 2018 and fiscal 2019 represent the fiscal years ended March
31, 2019 and 2020, respectively.

■ SFHFinancial Data (Consolidated)
Principal Indicators of Operating PerformanceSony Financial Holdings Inc.
For the years ended March 31,

Millions of yen

Ordinary revenues
Ordinary profit
Profit attributable to owners of the parent
Comprehensive income
Net assets
Total assets
Net assets per share (yen)Net income per share (yen)Diluted net income per share (yen)Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Cash and cash equivalents at the end of the period
Number of employees

2016

2017

2018

2019

2020

1,362,044
71,10343,355
71,105604,377
10,352,114
1,386.32
99.67

1,381,667
66,326
41,621
21,433
601,139
11,471,845
1,378.63
95.69
95.68
692,445(624,749)(34,057)
268,381
9,739

1,503,630
66,84351,89552,207625,406
12,401,446
1,433.73
119.30119.29819,721(680,845)(14,496)
393,133
10,7191,629,182
93,856
62,07457,415
656,846
13,468,215
1,505.20
142.69142.67
802,921(659,815)(26,645)
509,594
11,055

1,781,420
111,880
74,42962,192691,978
15,125,710
1,584.90
171.09171.04
878,726(810,444)(27,707)549,964
11,487

̶

602,475(558,825)(17,437)
233,620
9,029

Note: Diluted net income per share for the year ended March 31, 2016 is not shown because there are no dilutive shares.

For the years ended March 31,

%

2016

2017

2018

2019

2020

Sony Lifeʼs core ROEVSony Assuranceʼs adjusted ROESony Bank ʼs ROE

5.0
13.3
5.0

3.6
14.4
4.1

5.9
16.1
5.5

6.4
15.2
7.3

4.9
14.7
7.8

Consolidated adjusted ROE

5.2

3.9

6.1

6.7

5.3

Each ROE is calculated as follows:
Sony Lifeʼs core ROEV
New business value + Expected existing business contribution
MCEV* as of the beginning of the fiscal year less dividends paid plus MCEV* as of the end of the fiscal year, divided by two
Sony Assuranceʼs adjusted ROE
Net income (loss) + Provision amount for catastrophe reserveand its provision amount for reserve for price fluctuations, in each case after taxes
The average amount of net assets plus the sum of catastrophe reserveand its reserve for price fluctuations during the fiscal year, in each case after taxes
Sony Bankʼs ROE

Profit (loss) attributable to owners of the parent
The average amount of net assets during the fiscal year

Consolidated adjusted ROE
Consolidated adjusted ROE = Consolidated adjusted profit divided by consolidated adjusted capitalSony Life: New business value plus expected existing business contribution+ Sony Assurance: Net income (loss) plus provision amount for catastrophe reserve and its provision
amount for reserve for price fluctuations, in each case after taxes+ Sony Bank: Profit (loss) attributable to owners of the parent
Sony Life: MCEV* as of the beginning of the fiscal year less dividends paid plus MCEV* as of the end of the fiscal year, divided by two+ Sony Assurance: The average amount of net assets plus the sum of catastrophe reserveand its reserve for price fluctuations during the fiscal year, in each case after taxes+ Sony Bank: The average amount of net assets during the fiscal year
Note: Sony Life has changed its formula for calculating the numerator (adjusted profit) from fiscal 2016, whereby core ROEV rather than adjusted ROE
is used as an indicator for calculating consolidated adjusted ROE. Meanwhile, as of fiscal 2016 Sony Lifeʼs MCEV is calculated by using theultimate forward rate. Consolidated adjusted ROE for fiscal 2015 was recalculated based on these changes. However, Sony Lifeʼs core ROEV
was partially calculated by the simplified method.
* Sony Life discloses Market Consistent Embedded Value (“MCEV”). Sony Lifeʼs MCEV is calculated in compliance with the European Insurance CFO
Forum Market Consistent Embedded Value Principles©** (“MCEV Principles”), the international standard in disclosing MCEV published by the CFO
Forum comprising CFOs from major insurance companies in Europe.
** Copyright © Stichting CFO Forum Foundation 2008

Sony Financial Holdings Inc. Financial Data Book 2020

1

■ SFH Consolidated Financial Statements

Consolidated Balance Sheets
Sony Financial Holdings Inc.
As of March 31, 2019 and 2020

Millions of yen

2019

2020

Cash and due from banks

415,894549,964

Call loans and bills bought

93,700̶

Monetary claims purchased

4,916

6,006

291,324

38,067

Securities

10,373,188

11,909,172

Loans

1,942,546

2,187,792

104,128

109,372

Land

63,10665,562

Buildings

30,89930,072

Leased assets

6,536

10,669Construction in progress

77

66

Other tangible fixed assets

3,508

3,002

43,90954,590Software43,32750,461

Goodwill

551

4,097

Other intangible fixed assets

30

32

Due from reinsurers

1,341

4,936

Foreign exchanges

8,471

3,019

159,361

221,762

Net defined benefit asset

3,476

3,391

Deferred tax assets

27,556

39,210Reserve for possible loan losses(1,602)(1,575)

13,468,215

15,125,710

AssetsMoney held in trust

Tangible fixed assets

Intangible fixed assets

Other assets

Total Assets

2

Sony Financial Holdings Inc. Financial Data Book 2020

■ SFH Consolidated Financial Statements

Millions of yen

2019

2020

9,479,071

10,731,488

Liabilities
Policy reserves and others

78,285

81,2389,396,241

10,645,842

4,544

4,407

Due to agencies

2,073

2,471

Due to reinsurers

5,769

5,745

Reserve for outstanding claims
Policy reserves
Reserve for policyholdersʼ dividends

2,302,313

2,440,783

Call money and bills sold

130,611

151,256

Borrowed money

203,871

241,826244

684

Deposits

Foreign exchanges
Bonds payable

20,00020,000

Other liabilities

578,477

747,676

Reserve for employeesʼ bonuses

4,377

4,297

Net defined benefit liability

34,081

34,170Reserve under the special laws

50,34353,060Reserve for price fluctuations

50,34353,060

Deferred tax liabilities

24

160

Deferred tax liabilities on land revaluation

109

109

12,811,368

14,433,732

Total Liabilities

Net Assets
Shareholdersʼ equity
Common stock

19,96319,994

Capital surplus

191,193

191,224

Retained earnings

319,886

367,127

(55)

(55)

530,987

578,291

Treasury stock
Total shareholdersʼ equity
Accumulated other comprehensive income

128,800

114,868

Net deferred gains (losses) on hedging instruments, net of taxes(1,077)(373)

Land revaluation, net of taxes(2,439)(2,439)Remeasurements of defined benefit plans, net of taxes(1,470)(835)

123,812111,221

149

215

Net unrealized gains (losses) on available-for-sale securities, net of taxes

Total accumulated other comprehensive income
Stock acquisition rights
Non-controlling interests
Total Net Assets
Total Liabilities and Net Assets

1,896

2,250

656,846

691,978

13,468,215

15,125,710

Sony Financial Holdings Inc. Financial Data Book 20203

■ SFH Consolidated Financial Statements

Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Sony Financial Holdings Inc.
For the years ended March 31, 2019 and 2020

(1) Consolidated Statements of Income

2019

2020

Ordinary Revenues

1,629,182

1,781,420

1,461,632

1,602,154

1,134,048

1,338,848

1,130,676

1,331,441

3,372

7,407

278,950

208,620

166,953

181,812

4,490

4,086

Ordinary Revenues from the Life Insurance Business
Income from insurance premiums
Insurance premiums
Ceded reinsurance commissions

Investment income
Interest income and dividends
Income from money held in trust, net
Gains on trading securities, net
Gains on sale of securities
Gains on derivatives, net
Foreign exchange gains, net
Other investment income
Gains on separate accounts, net

Other ordinary income

̶

317

6,107

3,637

̶

18,766

13,455̶̶

187,943

̶

48,63354,685

115,101

121,727

Underwriting income

113,173

119,746

Net premiums written

113,101

119,352

72

74

Ordinary Revenues from the Non-life Insurance Business

Interest and dividends on deposits of premiums
Reversal of reserve for outstanding losses and claims

Investment income

̶

320

1,857

1,935

1,372

1,337

Gains on sale of securities

557

672

Transfer to interest and dividends on deposits of premiums

(72)

(74)

69

44

45,76649,99731,92633,950Interest income on loans

17,47318,729Interest income and dividends on securities

14,382

15,148Interest income on call loans and bills bought

10Interest income on deposits with banks

62

61

Other interest income

7

10Fees and commissions

9,398

12,101Other operating income

3,926

3,515

3,599

3,258

326

256

Interest income and dividends

Other ordinary income
Ordinary Revenues from the Banking Business
Interest income

Gains on foreign exchange transactions, net
OthersOther ordinary income
Other
Other ordinary income

4

Millions of yen

Sony Financial Holdings Inc. Financial Data Book 2020

515

430

6,681

7,541

6,681

7,541

■ SFH Consolidated Financial Statements

Millions of yen

2019

2020

1,535,325

1,669,540

1,386,074

1,510,288

457,252

521,198

Insurance claims

92,997

98,533

Annuity payments

13,48915,036

Insurance benefits

131,824

157,074

Surrender payments

204,351

231,772

3,659

3,732

Ordinary Expenses
Ordinary Expenses from the Life Insurance BusinessInsurance claims and other payments

Other payments
Reinsurance premiums

Provision for policy reserves and others
Provision for reserve for outstanding claims
Provision for policy reserves
Interest portion of reserve for policyholdersʼ dividends

10,92915,048704,780

678,724

2,433

2,444

702,346

676,28000Investment expenses

24,65091,944

Interest expenses

1,604

5,064

126

̶

Losses on trading securities, net

34

50

Losses on valuation of securities

4,026

6,316

Losses on derivatives, net

13,925̶

Losses on sale of securities

̶

4,884

Provision for reserve for possible loan losses

329

43

Depreciation of real estate for rent and others

1,599

1,637

Other investment expenses

3,003

2,812

Foreign exchange losses, net

Losses on separate accounts, net

Operating expenses
Other ordinary expenses
Ordinary Expenses from the Non-life Insurance Business
Underwriting expenses

̶

71,133

146,776

157,537

52,61460,883

107,413112,785

77,92581,797Net losses paid

56,60860,315

Loss adjustment expenses

8,220

9,001

Net commission and brokerage fees

1,214

1,141

Provision for reserve for outstanding losses and claims

1,139

̶

Provision for underwriting reserves

10,741

11,33810

Losses on sale of securities

0̶

Other investment expenses

1

029,48230,9834

5

Investment expenses

Operating, general and administrative expenses
Other ordinary expenses

Sony Financial Holdings Inc. Financial Data Book 2020

5

■ SFH Consolidated Financial Statements

Millions of yen

Consolidated Statements of Income (Continued)

2020

2019

Ordinary Expenses from Banking Business
Interest expenses
Interest expenses on deposits
Interest expenses on call money and bills soldInterest on payables under repurchase agreements
Interest on borrowed money
Interest expenses on bonds
Interest expenses on interest rate swaps
Other interest expenses
Fees and commissions
Other operating expenses
General and administrative expenses
Other ordinary expenses
Other
Other ordinary expenses
Ordinary Profit
Extraordinary Gains
Gains on disposal of fixed assets
Gains on step acquisitions
Other extraordinary gains

34,135Extraordinary Losses
Losses on disposal of fixed assets
Impairment losses
Provision for reserve under the special laws
Provision for reserve for price fluctuations
Other extraordinary losses
Provision for Reserve for Policyholdersʼ Dividends
Income Before Income Taxes
Income Taxes-Current
Income Taxes-Deferred

2,367

Total Income Taxes
ProfitProfit Attributable to Non-controlling Interests
Profit Attributable to Owners of the Parent

8,566
6,744
88
312
0
12
1,400
7
5,883
485
18,786
414
7,702
7,702
93,856
0
0
̶
̶

92
67
2,207
2,207
̶

2,146
89,34331,871(4,853)27,01862,325250
62,07437,483
9,194
7,274
268
348
2
13
1,280
6
7,077
126
20,902
181
8,982
8,982
111,880
264
0
248
16
3,139
120
21
2,695
2,695
301
2,422
106,583
37,747(5,925)31,822
74,761
331
74,429Millions of yen(2) Consolidated Statements of Comprehensive Income
Profit2020

2019
62,32574,761(5,215)(13,907)
703
658
(23)
(12,569)
62,192Other Comprehensive Income
Net unrealized gains (losses) on available-for-sale securities, net of taxes
Net deferred gains (losses) on hedging instruments, net of taxes(174)

Remeasurements of defined benefit plans, net of taxes

456

Share of other comprehensive income of affiliates accounted for using equity method
Total other comprehensive income

Comprehensive Income
Details:
Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests
6

Sony Financial Holdings Inc. Financial Data Book 2020

23
(4,909)57,41557,167248

61,838353

■ SFH Consolidated Financial Statements

Consolidated Statements of Changes in Net Assets
Sony Financial Holdings Inc.
For the years ended March 31, 2019 and 2020

Millions of yen

2019
Shareholdersʼ equity
Total
Treasury shareholdersʼ
equitystock

Commonstock

CapitalsurplusRetainedearnings

19,927

191,157

283,911(55)

Issuance of new shares

35

35

̶

̶

71

Dividends from surplus̶̶

(26,099)

̶

(26,099)

Purchase of treasury stock

̶

̶

̶

̶

̶

Profit attributable toowners of the parent̶̶

62,074

̶

62,074

Balance at the beginning of
the period

494,941

Changes during the period

Net changes of items otherthan shareholdersʼ equity

̶

̶

̶

̶

̶

Total changes during the period

35

35

35,975

̶

36,046

Balance at the end of the period

19,963

191,193

319,886(55)

530,987

Millions of yen

2019
Accumulated other comprehensive incomeNet
unrealized Net deferred
RemeasureTotal
gains (losses)
gains
ments ofaccumulated
on available- (losses) on
definedStockotherfor- salehedgingLand
benefitsecurities, instruments, revaluation, plans, net of comprehensive acquisitionrightsincomenet of taxes net of taxes net of taxes
taxes
Balance at the beginning of
the period

Noncontrollinginterests

Total net
assets625,406

133,991(902)(2,439)(1,929)128,71997

1,648

Changes during the period
Issuance of new shares

̶

̶

̶

̶

̶

̶

̶

71

Dividends from surplus

̶

̶

̶

̶

̶

̶

̶

(26,099)

Purchase of treasury stock

̶

̶

̶

̶

̶

̶

̶

̶

Profit attributable toowners of the parent

62,074

̶

̶

̶

̶

̶

̶

̶

Net changes of items otherthan shareholdersʼ equity(5,191)

(174)

̶

458

(4,907)52

248(4,606)

Total changes during the period(5,191)

(174)

̶

458

(4,907)52

248

31,439Balance at the end of the period

128,800(1,077)(2,439)(1,470)123,812

149

1,896

656,846

Sony Financial Holdings Inc. Financial Data Book 2020

7

■ SFH Consolidated Financial Statements

Consolidated Statements of Changes in Net Assets (Continued)

Millions of yen

2020
Shareholdersʼ equity
Commonstock

Capitalsurplus

Total
Retained Treasury shareholdersʼearnings
stock
equity19,963

191,193

319,886(55)

Issuance of new shares

31

31

̶

̶

62

Dividends from surplus̶̶

(27,189)̶

(27,189)

Purchase of treasury stock

̶

̶

̶

(0)

(0)

Profit attributable toowners of the parent̶̶

74,429̶

74,429Balance at the beginning of
the period

530,987

Changes during the period

Net changes of items otherthan shareholdersʼ equity

̶

̶

̶

̶

̶

Total changes during the period

31

3147,240(0)47,303

Balance at the end of the period

19,994

191,224

367,127(55)

578,291

Millions of yen

2020
Accumulated other comprehensive incomeNet
unrealized Net deferred
RemeasureTotal
gains
gains (losses)
ments ofaccumulated
on available- (losses) on
defined
Stock
other
Nonhedging
for- saleLandbenefitsecurities, instruments, revaluation, plans, net of comprehensive acquisition controlling Total net
assetsrightsincomeinterests
net of taxes net of taxes net of taxes
taxes
Balance at the beginning of
the period

128,800(1,077)(2,439)(1,470)123,812

149

1,896

656,846

Issuance of new shares

̶

̶

̶

̶

̶

̶

̶

62

Dividends from surplus

̶

̶

̶

̶

̶

̶

̶

(27,189)

Purchase of treasury stock

̶

̶

̶

̶

̶

̶

̶

(0)

Profit attributable toowners of the parent

Changes during the period

8

̶

̶

̶

̶

̶

̶

̶

74,429Net changes of items otherthan shareholdersʼ equity(13,931)

703

̶

635

(12,591)65

353(12,171)

Total changes during the period(13,931)

703

̶

635

(12,591)

65

353

35,131

Balance at the end of the period 114,868(373)(2,439)(835)

111,221

215

2,250

691,978

Sony Financial Holdings Inc. Financial Data Book 2020

■ SFH Consolidated Financial Statements

Consolidated Statements of Cash Flows
Sony Financial Holdings Inc.
For the years ended March 31, 2019 and 2020

Millions of yen

2019

2020

Cash flows from operating activities
Income before income taxes
89,343
106,583
Depreciation of real estate for rent and others
1,599
1,637
Depreciation and amortization
11,297
12,986
Impairment losses
67
21
Amortization of goodwill
32
62
Increase (decrease) in reserve for outstanding claims
3,573
2,105
Increase (decrease) in policy reserve
713,088
687,618
Interest portion of reserve for policyholdersʼ dividends
00Provision for (reversal of) reserve for policyholdersʼ dividends
2,146
2,422
Increase (decrease) in reserve for possible loan losses
449(26)
Increase (decrease) in net defined benefit liability
1,630
1,735
Increase (decrease) in reserve for price fluctuations
2,207
2,695
Interest income and dividends(200,253)(217,102)(Gains) losses on securities(94,790)
54,681
Interest expenses
10,69814,984Losses (gains) on derivatives
13,925(18,766)
Exchange (gains) losses(17,258)
26,169(Gains) losses on disposal of tangible fixed assets
78124̶
Losses (gains) on step acquisitions(248)
Equity in (gains) losses of affiliates
1,748
11
Net (increase) decrease in loans(147,727)(235,023)
Net increase (decrease) in deposits
143,031
140,591
Net increase (decrease) in borrowed money (excluding subordinated borrowings)
30,00037,923
Net increase (decrease) in call money and bills sold
54,902
41,448Net (increase) decrease in call loans and bills bought
461(1,090)Net (increase) decrease in foreign exchange (assets)
874
5,452
Net increase (decrease) in foreign exchange (liabilities)
16
440
Others, net
21,467
48,385
Subtotal
642,611715,825
Interest and dividends received
205,869
217,591
Interest paid
(10,221)(15,689)
Policyholdersʼ dividends paid
(3,086)(2,558)
Income taxes paid
(32,251)(36,441)
Net cash provided by (used in) operating activities
802,921878,726
Cash flows from investing activities
Investments in money held in trust(1,044)(1,284)
Proceeds from money held in trust
4,522
4,047
Purchases of securities(1,219,208)(1,360,076)
Proceeds from sale and redemption of securities
526,015
489,737
Investments in loans(63,716)(71,794)
Collections of loans
30,34135,463
Net increase (decrease) in payables under repurchase agreements
48,140188,364
Net gains (losses) from the settlement of derivative financial instruments
7,389(2,378)Net increase (decrease) in collateral for securities lending transactions
27,166(73,475)
Others, net
124421
Total of net cash provided by (used in) investment transactions(640,270)(790,973)
Total of net cash provided by (used in) operating activities and investment transactions
162,651
87,752
Purchases of tangible fixed assets(1,255)(4,357)
Proceeds from sales of tangible fixed assets
1
0
Purchases of intangible fixed assets(17,794)(18,799)
Purchase of securities of non-consolidated subsidiaries(50)(1,900)̶Proceeds from purchases of shares of subsidiaries resulting in change in scope of consolidation
8,537
Purchase of securities of affiliates(300)(2,750)
Others, net
(147)
(200)
Net cash provided by (used in) investing activities(659,815)(810,444)
Cash flows from financing activities
Proceeds from debt borrowing
4,640
6,400
Repayments of debt
(4,712)(6,367)
Cash dividends paid
(26,095)(27,187)
̶
Purchases of treasury stock(0)
Others, net
(476)
(551)
Net cash provided by (used in) financing activities(26,645)(27,707)
Effect of exchange rate changes on cash and cash equivalents
0(204)
Net increase (decrease) in cash and cash equivalents
116,461
40,370Cash and cash equivalents at the beginning of the period
393,133
509,594
Cash and cash equivalents at the end of the period
509,594549,964
Note: The above Consolidated Statements of Cash Flows have been prepared based on Article 210-10 of Ordinance for Enforcement of the
Insurance Business Act of Japan.

Sony Financial Holdings Inc. Financial Data Book 20209

■ Sony Life

Financial Data (Non-consolidated)
Balance Sheets
Sony Life Insurance Co., Ltd.
As of March 31, 2019 and 2020

Millions of yen, %
2020

2019
AmountComposition

AmountComposition

AssetsCash and deposits
Cash
Deposits

82,046
93,700

Securities
Japanese government bonds

0.8%

̶

Call loans
Money held in trust

157,709
157,708

0.9−

269,387

2.6

40

0.0

91.8

10,629,972

94.6

7,915,466

7,356,090
448

1,045
616,199

Japanese stocks

49,381

50,127

Foreign securities

1,262,611

1,765,943

Other securities

318,971

Policy loans

198,410281,191
1.9

Commercial loans

41
91,577

208,632562

0.9

93,619Land

62,25964,715

Buildings

28,544

27,843

Leased assets

20

408

Other tangible fixed assets

752

Software26,352

1.9

208,069

198,369

Tangible fixed assets

Intangible fixed assets−

9,523,877

536,373

Loans

1.4%

1

Japanese corporate bonds

Japanese local government bonds

0.8

651
0.3

28,6290.3

28,62926,352

Due from reinsurers

1,036

0.0

1,205

0.0

Other assets

81,1540.8

99,2860.9

41,194

Other receivables

39,287

Prepaid expenses

2,345

2,556

Accrued income

21,941

23,616

Money on deposits

5,580

6,167

Initial margins of futures markets

3,279

5,097

Variation margins of futures markets

72

1,032

Derivatives

448

18,776

7,410

̶

Advance payments

718

767

Others

71

77

Cash collateral paid for financial instruments

Prepaid pension costs

2,629

0.0

3,271

Deferred tax assets

14,2480.1

19,3080.2

Reserve for possible loan losses

(623)

(0.0)

(652)

(0.0)

Reserve for investment losses(3,650)(0.0)(3,899)(0.0)

10,380,148

100.0

11,237,124

100.0

Total Assets

10

82,046

Sony Financial Holdings Inc. Financial Data Book 2020

0.0

■ Sony Life Financial Data (Non-consolidated)

Millions of yen, %
2020

2019

Liabilities
Policy reserves and others
Reserve for outstanding claims
Policy reserves
Reserve for policyholdersʼ 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
Derivatives
Cash collateral received for financial instruments
Lease obligations
Asset retirement obligations
Suspense receipt
Reserve for employeesʼ retirement benefits
Reserve under the special laws
Reserve for price fluctuations
Deferred tax liabilities on land revaluation
Total Liabilities

Net Assets
Common stock
Capital surplus
Capital reserve
Retained earnings
Legal retained earnings
Other retained earnings
Unappropriated retained earnings

AmountComposition

AmountComposition

9,310,577

89.7%

10,004,643
40,403
9,959,832
4,407
2,408
5,344
602,739
268,520
257,580
17,194
2,574
24,338
881
620
4,539

89.0%

37,6109,268,422
4,544
2,073

0.0

5,528

0.1

469,820

4.5

81,474331,055
13,914
2,975
21,071
798
1,321
4,204

0.0
0.0
5.4

753

̶

8,189

0.0

109

0.0

1,215
17,990
456
1,968
4,859
29,52852,76852,768109

9,866,217

95.0

10,697,541

95.2

70,000

0.7

5,865

0.1

0.6
0.1

3.1

70,0005,865
5,865
342,32146,628295,692
295,692

3.8

418,186

3.7

̶

22
1,898
2,140
28,0020.3

50,1050.5

50,105

5,865
317,777
40,188277,588
277,588

0.3
0.5

3.0

Total shareholdersʼ equity

393,642Net unrealized gains (losses) on available-for-sale securities, net of taxes

122,727

1.2

123,835

1.1(2,439)(0.0)(2,439)(0.0)

Total valuation and translation adjustments

120,2881.2

121,396

1.1

Total Net Assets

513,930

5.0

539,582

4.8

10,380,148

100.0

11,237,124

100.0Land revaluation, net of taxes

Total Liabilities and Net Assets

Sony Financial Holdings Inc. Financial Data Book 202011

■ Sony Life Financial Data (Non-consolidated)

Statements of Income
Sony Life Insurance Co., Ltd.
For the years ended March 31, 2019 and 2020

Ordinary Revenues
Income from insurance premiums
Insurance premiums
Ceded reinsurance commissions

Investment income
Interest income and dividends

Millions of yen
2020

1,464,218

1,580,117

1,136,104

1,330,860

1,132,732

1,327,857

3,372

3,003

278,935

193,718

166,937

181,81100150,733

164,700

Interest income from loans

6,828

7,049

Income from real estate for rent

8,831

9,710

Other interest income and dividends

543

350

Income from money held in trust, net

4,490

4,013

Interest income from deposits
Interest income and dividends on securities

Gains on trading securities, net
Gains on sale of securities
Gains on derivatives, net
Foreign exchange gains, net
Other investment income
Gains on separate accounts, net

Other ordinary income

12

2019

̶

156

6,107

3,637

̶

4,098

13,455̶̶

187,944

̶

49,17855,537

Income for annuity riders

4,027

4,893

Proceeds from deferred insurance

43,046

48,707

Other ordinary income

2,104

1,936

Sony Financial Holdings Inc. Financial Data Book 2020

■ Sony Life Financial Data (Non-consolidated)

Ordinary Expenses

2019

Millions of yen
2020

1,384,406

1,491,396

457,252

511,945

Insurance claims

92,997

98,533

Annuity payments

13,48914,644

Insurance benefits

131,824

155,883

Surrender payments

204,351

228,538

Insurance claims and other payments

Refund to policyholders

3,659

3,722

Reinsurance premiums

10,92910,622

Provision for policy reserves and others

704,780

694,202

Provision for reserve for outstanding claims

2,433

2,792

702,346

691,409

Provision for policy reserves
Interest portion of reserve for policyholdersʼ dividends

00Investment expenses

24,63868,127

Interest expenses

1,604

5,059

126

̶

Losses on trading securities, net

34

50

Losses on valuation of securities

4,026

6,316

Losses on derivatives, net

13,925

̶

̶

6,345

Losses on sale of securities

Foreign exchange losses, net
Provision for reserve for possible loan losses

329

43

Depreciation of real estate for rent and others

1,599

1,637

Other investment expenses

2,992

2,683

̶

45,990Operating expenses

146,984

156,454

Other ordinary expenses

50,75060,666

Deferred insurance payments

28,65534,795

Taxes

13,41916,011

Depreciation and amortization

6,248

7,506

Provision for reserve for employeesʼ retirement benefits

2,402

2,346

25

7

79,812

88,720Losses on separate accounts, net

OthersOrdinary Profit

Sony Financial Holdings Inc. Financial Data Book 202013

■ Sony Life Financial Data (Non-consolidated)

Statements of Income (Continued)
Millions of yen
2020

2019
5,929

3,272

Losses on disposal of fixed assets

63

95

Impairment losses

39

21

Provision for reserve under the special laws

2,175

2,663

Provision for reserve for price fluctuations

2,175

2,663

Losses on valuation of shares of subsidiaries̶

244

Provision for reserve for investment losses

3,650

249

Provision for Reserve for Policyholdersʼ Dividends

2,146

2,422

Income Before Income Taxes

71,73783,025

Income Taxes - Current

25,32831,333

Income Taxes - Deferred(3,194)(5,052)

Total Income Taxes

22,134

26,281Net Income

49,60256,743Extraordinary Losses

14

Sony Financial Holdings Inc. Financial Data Book 2020

■ Sony Life Financial Data (Non-consolidated)

Statements of Changes in Net Assets
Sony Life Insurance Co., Ltd.
For the years ended March 31, 2019 and 2020

Millions of yen
2019
Shareholdersʼ equity
Capital surplus

Retained earnings
Otherretainedearnings

Balance at the beginning of the period

Commonstock

Capitalreserve

Total
capitalsurplus

Legal
Total
UnappropriatedTotal
retainedretained shareholdersʼretainedearnings
earnings
equityearnings

70,000

5,865

5,865

34,938259,486

294,424370,289

Changes during the period
Dividends from surplus

̶

̶

̶

5,250

(31,500)(26,250)(26,250)

Net income

̶

̶

̶

̶

49,60249,60249,602

Net changes of items other thanshareholdersʼ equity

̶

̶

̶

̶

̶

̶

̶

Total changes during the period

̶

̶

̶

5,250

18,102

23,352

23,352

Balance at the end of the period

70,000

5,865

5,865

40,188277,588317,777

393,642Millions of yen
2019
Valuation and translation
adjustments
Net
unrealized
gains(losses) on
Total
availablevaluation
for- saleLandandsecurities,
revaluation, translation
net ofnet of taxes adjustments
taxes

Total net
assets124,936(2,439)122,497492,787

Dividends from surplus

̶

̶

̶

(26,250)

Net income

̶

̶

̶

49,602(2,208)̶

(2,208)(2,208)

Total changes during the period(2,208)̶

(2,208)21,143

Balance at the end of the period

122,727(2,439)120,288

513,930

Balance at the beginning of the period
Changes during the period

Net changes of items other than shareholdersʼ equity

Sony Financial Holdings Inc. Financial Data Book 202015

■ Sony Life Financial Data (Non-consolidated)

Statements of Changes in Net Assets (Continued)
Millions of yen

2020
Shareholdersʼ equity
Capital surplus

Retained earnings
Otherretainedearnings
Legal Unappropriated Total
Total
retained shareholdersʼretainedretainedearnings
earnings
earnings
equityCommonstock

Capitalreserve

Total
capitalsurplus70,000

5,865

5,865

40,188277,588317,777

393,642Dividends from surplus

̶

̶

̶

6,440

(38,640)(32,200)(32,200)

Net income

̶

̶

̶

̶

56,74356,74356,743

Net changes of items other thanshareholdersʼ equity

̶

̶

̶

̶

̶

̶

̶

Total changes during the period

̶

̶

̶

6,440

18,10324,54324,543

Balance at the end of the period

70,000

5,865

5,865

46,628295,692

342,321418,186

Balance at the beginning of the period
Changes during the period

Millions of yen

2020
Valuation and translation
adjustments
Net
unrealized
gains(losses) on
availableTotal
valuationfor- saleandsecurities,Land
net ofrevaluation, translation Total net
taxes
net of taxes adjustments assets
122,727(2,439)120,288

513,930

Dividends from surplus

̶

̶

̶

(32,200)

Net income

̶

̶

̶

56,743

1,107

̶

1,107

1,107

Total changes during the period

1,107

̶

1,107

25,651

Balance at the end of the period

123,835(2,439)121,396

539,582

Balance at the beginning of the period
Changes during the period

Net changes of items other than shareholdersʼ equity

16

Sony Financial Holdings Inc. Financial Data Book 2020

■ Sony Life Financial Data (Non-consolidated)

Notes
Sony Life Insurance Co., Ltd.

(Retirement benefit obligations)
As of March 31, for the year ended March 31,
1. Overview of retirement benefit plans
A lump-sum retirement benefit plan is provided to sales employees as a defined benefit plan. A defined benefit corporate pension plan is provided to office employees as a defined benefit plan. Also, a defined contribution pension plan isprovided as a defined contribution plan.
2. Defined benefit plan
(1) Reconciliation of beginning and ending balances of retirement benefit obligations
Millions of yen

Balance at the beginning of the period
Service cost
Interest cost
Net actuarial gains (losses)
Retirement benefits paid
Balance at the end of the period

2019
41,964
4,558
95
117(3,376)43,3592020
43,359
4,635
68
(714)
(3,349)44,001(2) Reconciliation of beginning and ending balances of plan assets
Millions of yen

Balance at the beginning of the period
Expected return on plan assets
Net actuarial gains (losses)
Employer contribution
Retirement benefits paid
Balance at the end of the period

2019
15,371
153
35
1,201
(567)
16,1952020
16,195
161
(688)
1,463
(422)
16,709(3) Reconciliation of retirement benefit obligations and plan assets, and reserve for employeesʼ retirement benefits andprepaid pension costs recorded on the balance sheets
Millions of yen

Unfunded retirement benefit obligations
Unrecognized net actuarial gains (losses)
Net liabilities and assets recorded on the balance sheets

2019
2020
12,239 12,984(16,195) (16,709)(3,955) (3,724)
31,120 31,016(1,791) (1,034)
25,373 26,256

Reserve for employeesʼ retirement benefits
Prepaid pension cost
Net liabilities and assets recorded on the balance sheets

28,002(2,629)25,373Funded retirement benefit obligations
Plan assets

29,528(3,271)
26,256(4) Gains (losses) related to retirement benefits
Millions of yen

Service cost
Interest cost
Expected return on plan assets
Recognized actuarial gains (losses)
OthersRetirement benefit expenses related to defined benefit plans

2019
4,558
95
(153)
711
80
5,291

2020
4,635
68
(161)
730
71
5,344

Sony Financial Holdings Inc. Financial Data Book 202017

■ Sony Life Financial Data (Non-consolidated)(5) Main components of plan assets
The percentage share of components by main asset class out of total plan assets is as follows:
Bonds
StocksOthers
Total

2019
67%
30%
3%
100％

2020
70%
26%
4%
100％

(6) Method of setting the long-term expected rate of return on plan assets
The long-term expected rate of return on plan assets is determined by taking into account the current and expected allocation of plan assets, and the current long-term return rate and the long-term return rate that are expected in the future
based on the various assets that comprise the plan assets.
(7) Bases for calculating actuarial gain or loss
The main bases for calculating actuarial gain or loss are as follows:
2019

2020

Discount rate
for sales employees
for office employees
Long-term expected rate of return on plan assets

0.1%
0.3%
1.0%

0.4%
0.6%
1.0%

3. Defined contribution plan
The amounts of contribution required for defined contribution plans by Sony Life were ¥111 million and ¥121 million for the year
ended March 31, 2019 and 2020, respectively.

(Tax effect accounting)
As of March 31, for the year ended March 31,
1. The total amount of deferred tax assets was ¥68,594 million, while the total amount of deferred tax liabilities was ¥48,776
million for fiscal 2019. Of the deferred tax assets, the amount deducted as valuation allowance was ¥5,569 million.
The breakdown of major factors giving rise to the deferred tax assets is policy reserves and others of ¥34,020 million, areserve for price fluctuations of ¥14,029 million, a reserve for employeesʼ retirement benefits of ¥7,104 million, losses on
valuation of securities of ¥4,637 million and excess depreciation and amortization of ¥2,940 million.
Of the amount deducted from deferred tax assets as the amount of valuation allowance, the amount of valuation allowanceon total deductible temporary differences is ¥5,569 million.
The major factor giving rise to the deferred tax liabilities is net unrealized gains on available-for-sale securities of ¥48,142
million.
The main reason for changes in the amount deducted from deferred tax assets as the amount of valuation allowance is the
additional recognition of valuation allowance pertaining to losses on valuation of securities and reserve for investment loss.
The total amount of deferred tax assets was ¥76,804 million, while the total amount of deferred tax liabilities was ¥50,122
million for fiscal 2020. Of the deferred tax assets, the amount deducted as valuation allowance was ¥7,373 million.
The breakdown of major factors giving rise to the deferred tax assets is policy reserves and others of ¥38,518 million, areserve for price fluctuations of ¥14,775 million, a reserve for employeesʼ retirement benefits of ¥7,351 million, losses on
valuation of securities of ¥6,484 million and excess depreciation and amortization of ¥2,732 million.
Of the amount deducted from deferred tax assets as the amount of valuation allowance, the amount of valuation allowanceon total deductible temporary differences is ¥7,373 million.
The major factor giving rise to the deferred tax liabilities is net unrealized gains on available-for-sale securities of ¥48,134
million.
The main reason for changes in the amount deducted from deferred tax assets as the amount of valuation allowance is the
additional recognition of valuation allowance pertaining to losses on valuation of securities.
2. The statutory effective tax rate in fiscal 2019 was 28.0%. The major item giving rise to a difference between the statutory
effective tax rate and the effective income tax rate after application of tax effect accounting is a 2.21% increase in valuation
allowance.
The statutory effective tax rate in fiscal 2020 was 28.0%. The major item giving rise to a difference between the statutory
effective tax rate and the effective income tax rate after application of tax effect accounting is a 2.17% increase in valuation
allowance.

18

Sony Financial Holdings Inc. Financial Data Book 2020

■ Sony Life Financial Data (Non-consolidated)

1

Loans by Borrower Category

As of March 31,

Bankrupt and quasi-bankrupt loans
Doubtful loans
Sub-standard loans
Subtotal[Ratio to total]
Normal loans
Total

2019

Millions of yen, %
2020
0
2
̶
̶

̶
̶

0
[0.0]
461,094
461,0942[0.0]
413,529
413,531

Notes: 1. Bankrupt and quasi-bankrupt loans are loans to borrowers who are subject to bankruptcy, corporate reorganization, rehabilitation orother 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 andresults of operations 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, as well as restructured loans.
Note that loans past due for three months or more are loans on which principal and/or interest are past due for three months ormore (excluding loans described in notes 1. and 2. above). Restructured loans are those for which terms and conditions have been
amended in favor of the borrowers (e.g., reduction of the original interest rate, deferral of interest payments, extension of principal
repayments or debt waiver) in order to support the borrowersʼ 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 notes 1. to 3. above and where the borrowers have no financial or
business performance problems.

2

Risk-monitored Loans

As of March 31,

2019

Bankrupt loans
Non-accrual delinquent loans
Past-due loans (3 months or more)
Restructured loans
Total[Ratio to loan balance]

Millions of yen, %
2020
̶
0
0
2
̶
̶

̶
̶

0
[0.0]

2
[0.0]

Notes: 1. Bankrupt loans include loans that have been in arrears on principal or interest payments for a considerably long period of time orloans (non-accrual loans) on which principal or interest payments are considered unlikely to occur in the future for other reasons andon which interest income is not recognized. These are the loans to borrowers who have been legally bankrupt due to the petition forproceedings under the Corporate Reorganization Act, the Civil Rehabilitation Act, the Bankruptcy Act, and the Companies Act; orthe loans to borrowers who have notes suspended from being traded; or the loans to borrowers who have filed for legal proceedings
similar to the aforementioned proceedings based on overseas laws.
2. Non-accrual delinquent loans are non-accrual loans other than bankrupt borrowers and loans on which interest payments aredeferred in order to support the borrowersʼ recovery from financial difficulties.
3. Past-due loans (3 months or more) are loans on which the payments of principals or interests are past the due date for three months
or more, and which are not classified to bankrupt loans or non-accrual delinquent loans.
4. Restructured loans are loans on which terms and conditions have been amended in favor of the borrowers (e.g., reduction of theoriginal interest rate, deferral of interest payments, extension of principal repayments or debt waiver) in order to support the borrowersʼ recovery from financial difficulties, excluding bankrupt loans, non-accrual delinquent loans and past-due loans (3 months ormore).

3

Accounting Indicators

3-01

Reserve for outstanding claims

As of March 31,

Insurance claims
Death benefits
Accidental benefits
Disability payments
Maturity benefits
OthersSubtotalAnnuity payments
Insurance benefits
Surrender payments
Deferred insurance payments
Total, including others

2019
8,262
282
1,182
1,419
2,920
14,067674
9,924
11,948878
37,610Millions of yen
2020

9,732
224
1,352
1,431
3,987
16,727309
10,405
11,746
1,044
40,403

Sony Financial Holdings Inc. Financial Data Book 202019

■ Sony Life Financial Data (Non-consolidated)

3-02

Policy reserves

As of March 31,

Policy reserves (excluding contingency reserve)
Individual life insurance
General accounts
Separate accounts
Individual annuities
General accounts
Separate accounts
Group life insurance
General accounts
Separate accounts
Group annuities
General accounts
Separate accounts
OthersGeneral accounts
Separate accounts
Subtotal
General accounts
Separate accounts
Contingency reserve
Total
General accounts
Separate accounts

3-03

Millions of yen
2020

8,751,152
7,693,808
1,057,344
409,931
188,133
221,798
60
60

9,369,164
8,311,204
1,057,959
475,577
209,589
265,988
65
65

̶

8,664
8,664
̶
̶
̶
̶

̶

7,364
7,364
̶
̶
̶
̶

9,169,808
7,890,665
1,279,143
98,613
9,268,422
7,989,279
1,279,143

9,852,172
8,528,224
1,323,948
107,659
9,959,832
8,635,883
1,323,948

2019
8,925,064
244,744

Millions of yen
2020
9,581,172
271,000

Breakdown of policy reserves

As of March 31,

Premium reserve
Unearned premiums
Refund reserve
Contingency reserve
Total

3-04

2019

̶

98,613
9,268,422

̶107,659
9,959,832

Policy reserve calculation methods, ratios and balance involving individuallife insurance and individual annuities by contract fiscal year

Policy reserve calculation methods and ratios
As of March 31,

Calculation method
Policies subject to standard policy reserve method
Pure death-protection insurance
Mixed insurance
Pure endowment insurance
Annuities
Policies not subject to standard policy reserve method
Pure death-protection insurance
Mixed insurance
Pure endowment insurance
Annuities
Ratio of “amount of the companyʼs policy reserves(excluding contingency reserve)” to “policy reserves
required by regulatory standards”

2019

2020

Net level premium reserve method
Net level premium reserve method
Net level premium reserve method
Net level premium reserve method

Net level premium reserve method
Net level premium reserve method
Net level premium reserve method
Net level premium reserve method

Net level premium reserve method
Net level premium reserve method
Net level premium reserve method
Net level premium reserve method

Net level premium reserve method
Net level premium reserve method
Net level premium reserve method
Net level premium reserve method

100.1%

100.1%

Notes: 1. The calculation methods and ratios are set for individual life insurance and individual annuities. The concept of calculation method is
not targeted at policy reserves for group life insurance and group annuities, so these insurance policies are not included.
2. The above ratios indicate the amounts of the companyʼs policy reserves (excluding contingency reserve) to the required premium
reserves and unearned premiums calculated by (a) the method laid down in the Ministry of Finance Public Notice No. 48 (1996) for
policies to which the standard policy reserve method is applied, and (b) the net level premium reserve method for policies to which
the standard policy reserve method is not applied.
The amounts of the companyʼs policy reserves include policy reserves additionally reserved to maintain the future soundness ofcertain policies.

20

Sony Financial Holdings Inc. Financial Data Book 2020

■ Sony Life Financial Data (Non-consolidated)

Balance of policy reserves by contract fiscal year
Balance of policy reserves

Fiscal year issued

̶Up to FY1980
FY1981 to FY1985
FY1986 to FY1990
FY1991 to FY1995
FY1996 to FY2000
FY2001 to FY2005
FY2006 to FY2010
FY2011FY2012FY2013
FY2014FY2015FY2016FY2017FY2018FY201934,26953,140598,632
1,143,072
1,393,511
1,949,615
469,665
517,091
462,495
388,162
370,213
270,311262,268
261,218
347,126

Millions of yen, %Assumed interest rate̶%
6.00 - 6.25
6.00 - 6.25
2.75 - 6.25
1.90 - 4.00
1.50
1.50
1.50
1.50
1.00
1.00
1.00
1.00
0.25
0.25
0.25

Notes: 1. The balance of policy reserves shows the total of those for individual life insurance and individual annuities, excluding those of
separate accounts and contingency reserves.
2. The assumed interest rate shows the assumed interest rate of the majority of policy reserves for each contract fiscal year.

3-05

Balance, calculation method and coefficient of policy reserves of generalaccounts related to policies with minimum guarantees whose insurance policies are invested in separate accounts

Balance of policy reserves (general account)

Millions of yen
2020
149,8212019
125,574

As of March 31,

Balance of policy reserves (general account)Notes: 1. Calculations employed in the above table apply to the insurance policies subject to the standard policy reserve method provided forunder Article 68 of the Ordinance for Enforcement of the Insurance Business Act of Japan.
2. Each of the balances of policy reserves of the general accounts shows the total of premium reserve related to minimum guarantees
and unearned premiums.

Calculation method and coefficient
Contracts dated on or before
Contracts dated on or afterJanuary 1, 2019
January 2, 2019
Variable life insurance (whole life type), variable life insurance (limited term type),
variable life insurance (term type)
Standard policy reserve method
Alternative method (scenario testing
stipulated in the Ministry of Financemethod) stipulated in the Ministry of
Public Notice No. 48 (1996)
Finance Public Notice No. 48 (1996)

Products
Calculation method

Coefficient

Assumed mortality rate,
discount rate, expected
returns, volatility
Assumed surrender rates

3-06

Rates stipulated in the Ministry of Finance Public Notice No. 48 (1996)
During the payment of insurance
premiums: annual rate of 5.0%
Other than the above: annual rate of
3.0%

Annual rate of 0.3% - 9.7%
depending on products, years elapsed,
etc.

Reserve for policyholdersʼ dividends
Millions of yen
2019

For the year ended March 31,

At the beginning of theperiodIncrease due to interest
Decrease due to dividend
payment
Provision for the period
At the end of the period

Individual life
insuranceGroupannuities

Asset-formation
insurance,
asset-formation
annuities

Individual
annuities

Group life
insurance

1,877
0

305
0

3,296
̶

̶

4

̶
̶

̶
̶

5,484
0

155
87
1,810
[1,432]

25
15
295
[176]

2,901
2,041
2,436
[0]

4
1
1
[̶]

̶
̶
̶
[̶]

̶
̶
̶
[̶]

3,086
2,146
4,544
[1,609]Others

Total

Sony Financial Holdings Inc. Financial Data Book 202021

■ Sony Life Financial Data (Non-consolidated)

Millions of yen

2020

For the year ended March 31,

Individual life Individual
insurance
annuities

At the beginning of theperiodIncrease due to interest
Decrease due to dividend
payment
Provision for the period
At the end of the period

Group life
insurance

Asset-formation
insurance,
asset-formationGroupannuities
annuities

Others

Total

1,810
0

295
0

2,436
̶

̶

1

̶
̶

̶
̶

4,544
0

180
84
1,714
[1,443]

23
17
289
[197]

2,352
2,317
2,401
[0]

1
3
3

̶
̶
̶
[̶]

̶
̶
̶
[̶]

2,558
2,422
4,407
[1,641][̶]Note: Figures in [ ] are accumulated dividends.

3-07

Other reserves
Millions of yen

For the years ended March 31,

Balance atthe beginningof the period

Increase(decrease)

0

2

2

2

0

(2)

294

620

326

620

652

31

̶
̶

̶

̶

̶

̶

̶

3,650

3,650

3,650

3,899

249

26,65628,002

1,346

28,002

29,528

1,525

Reserve for possible loan losses
General reserve for possible
loan losses
Specific reserve for possible
loan losses
Reserve for possible loan
losses for specific foreigncountries
Reserve for investment losses
Reserve for employeesʼ retirement benefits
Reserve for directorsʼ retirement
benefits
Reserve for price fluctuations

3-08

2020
Balance atBalance atthe beginning the end ofof the period the period

2019
Balance atthe end of
the period

̶

̶

̶

̶

̶

̶

47,92950,105

2,175

50,10552,7682,663

Insurance premiums
Millions of yen
2020
1,225,810
211,675
314,564
11,602687,968
96,67147,7255,881
481
42,5825,325
50
1,327,857

2019
1,058,984
102,191
278,229
11,363
667,199
67,50130,683
5,492
412
30,912
6,191
55
1,132,732

For the years ended March 31,

Individual life insurance
Single premium
Annual payment
Semi-annual payment
Monthly payment
Individual annuities
Single premium
Annual payment
Semi-annual payment
Monthly payment
Group life insuranceGroup annuities
Total, including others

3-09

Increase(decrease)

Insurance claims
Millions of yen
2019

For the years ended March 31,

Death benefits
Accidental benefits
Disability payments
Maturity benefits
Others
Total

22

Total
52,685621
2,855
22,781
14,05392,997

Sony Financial Holdings Inc. Financial Data Book 2020

2020
Asset-formation
insurance,
Individual life Individual Group life
Group asset-formation
annuities
insurance annuities insurance annuities̶̶̶
53,786
1,369
̶
̶
̶
̶
545
̶
̶
̶
2,601
189
̶
̶
̶
̶
22,885̶̶̶
16,954201
̶̶̶
96,772
1,760

Others

̶
̶
̶
̶
̶
̶

Total
55,155545
2,791
22,885
17,15598,533

■ Sony Life Financial Data (Non-consolidated)

3-10

Annuity payments
Millions of yen

2020

2019

Asset-formation
insurance,
Individual life Individual Group life
Group asset-formation
Total
annuities
insurance annuities insurance annuities̶̶
13,48913,3950
1,248

For the years ended March 31,

Annuity payments

3-11

Others̶

Total
14,644

Insurance benefits
Millions of yen

2020

2019

For the years ended March 31,

Death benefits
Hospitalization benefits
Surgery benefits
Disability benefits
Living benefits
Others
Total

3-12

Total
2,942
9,793
10,730149
96,034
12,174
131,824

Asset-formation
insurance,
Individual life Individual Group life
Group asset-formation
annuities
insurance annuities insurance annuities
̶
̶
̶
3,037
67
̶
̶
̶
9,883
1
̶
̶
̶
̶
11,588
̶
̶
̶
̶
137
̶
̶
̶
̶
117,845
̶̶
12,416720
185
̶
154,908787
1
185

Others

̶
̶
̶
̶
̶
̶
̶

Total
3,104
9,885
11,588137
117,845
13,321
155,883

Surrender payments
Millions of yen

2020

2019

For the years ended March 31,

Surrender payments

3-13

Asset-formation
insurance,
Individual life Individual Group life
Group asset-formation
Total
annuities
insurance annuities insurance annuities̶̶̶
204,351
214,774
13,764

Others̶

Total
228,538

Depreciation and amortization
Millions of yen, %

2020

2019

For the years ended March 31,

Tangible fixed assets
Buildings
Leased assets
Other tangible fixed assets
Intangible fixed assets
OthersTotal

3-14

Balance
Balanceat the end
at the end
Acquisition Depreciation Accumulated of the
Ratio of Acquisition Depreciation Accumulated of the
Ratio ofcost
expenses depreciation period depreciation cost
expenses depreciation period depreciation
9,392
562
3,570
5,821 38.0% 10,433
601 4,099 6,334 39.3%
7,612
390
2,508
5,103 33.0
8,599
421 2,897 5,701 33.7
21
4
0
20
2.4
26
6
6
19 25.3
1,759
166
1,061
697 60.4
1,807
174 1,194
612 66.1
63,864
5,682 37,512 26,352 58.7
73,033 6,903 44,404 28,629 60.8
153
13
2 84.215
113
2 85.973,273
6,248 41,096 32,176 56.1
83,482 7,506 48,517 34,965 58.1

Operating expenses
2019
68,562
19,02459,397
146,984

For the years ended March 31,

Sales and marketing expenses
Sales administrative expenses
General administrative expenses
Total

Millions of yen
2020
73,115
19,594
63,744
156,454

Note: Contribution to the Life Insurance Policyholders Protection Corporation of Japan prescribed by Article 259 of the Insurance Business Act
of Japan is as follows:
For the years ended March 31,

2019Millions of yen
2020

Life Insurance Policyholders Protection Corporation of Japan

787

794

Sony Financial Holdings Inc. Financial Data Book 202023

■ Sony Life Financial Data (Non-consolidated)

4 Reconciliation to Core Profit and Non-consolidated Ordinary Profit
For the years ended March 31,（A）
Core profit
Capital gains
Income from money held in trust, net
Gains on trading securities, net
Gains on sale of securities
Gains on derivatives, net
Foreign exchange gains, net
Other capital gains
Capital losses
Losses on money held in trust, net
Losses on trading securities, net
Losses on sale of securities
Losses on valuation of securities
Losses on derivatives, net
Foreign exchange losses, net
Other capital losses（B）
Net capital gains (losses)
（A）
＋
（B）
Core profit plus net capital gains (losses)
Other one-time gains
Gains from reinsurance
Reversal of contingency reserve
Reversal of specific reserve for possible loan losses
OthersOther one-time losses
Losses from reinsurance
Provision for contingency reserve
Provision for specific reserve for possible loan losses
Provision for reserve for possible loan losses for specific foreign countries
Write-off of loans
Others（C）
Net other one-time gains (losses)
（A）
＋
（B）
＋
（C）
Ordinary profit

2019
97,242
19,562Millions of yen
2020
96,16814,507

̶

̶

̶

149
3,637
4,098

6,107
̶

13,455

̶̶

6,622
12,74527,847
̶

̶

144
34
4,026
13,925

̶

̶

50
6,316
̶

9,716
(8,284)
88,957

6,345
32
1,762
97,930

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

9,145

9,210

̶

̶

8,698
326

9,045
46

̶

̶

̶

̶

119
(9,145)79,812

118(9,210)88,720

Reference: The breakdown of others
Millions of yen
For the years ended March 31,

Core profit
Income gains in income from money held in trust
Interest income and dividends in income from trading securities
Effect of change in the exchange rates related to foreign currency-denominatedinsurance contracts
Other capital gains
Effect of change in the exchange rates related to foreign currency-denominatedinsurance contracts
Other capital losses
Impairment losses from investment partnerships
Effect of change in the exchange rates related to foreign currency-denominatedinsurance contracts
Other one-time gains
Other one-time losses
Provision for additional policy reserve24

Sony Financial Holdings Inc. Financial Data Book 20202019
14,224
4,490
17

2020
(2,602)
4,013
7

9,716

(6,622)
6,622

̶
̶
̶

6,622
32
32

9,716

̶

9,716

̶

̶

119
119

118
118

■ Sony Life Financial Data (Non-consolidated)

Reference: Reconciliation to core profit
Millions of yen
For the years ended March 31,

2019Core Revenues
Income from insurance premiums
Insurance premiums
Ceded reinsurance commissions
Investment income
Interest income and dividends
Gains on redemption of securities
Reversal of general reserve for possible loan losses
Other investment income
Gains on separate accounts, net
Other ordinary income
Income for annuity riders
Proceeds from deferred insurance
Reversal of reserve for outstanding claims
OthersOther core revenues
Core 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
Investment expenses
Interest expenses
Losses on redemption of securities
Provision for general reserve for possible loan losses
Depreciation of real estate for rent and others
Other investment expenses
Losses on separate accounts, net
Operating expenses
Other ordinary expenses
Deferred insurance payments
Taxes
Depreciation and amortization
Provision for reserve for employeesʼ retirement benefits
OthersOther core expenses
Core Profit

1,454,390
1,136,104
1,132,732
3,372
254,882
166,9372020
1,572,234
1,330,860
1,327,857
3,003
181,815
181,811

̶

̶

̶
̶

2
1

87,944
49,1784,027
43,04655,537
4,893
48,707

̶

̶

̶

2,104
14,224
1,357,147
457,252
92,997
13,489131,824
204,351
3,659
10,929695,962
6,198
1,604

1,936
4,020
1,476,066
511,945
98,533
14,644
155,883
228,538
3,722
10,622685,039
55,338
5,059

̶

̶

2
1,599
2,992

̶

̶

146,984
50,75028,655
13,419
6,248
2,402
25
̶

97,242

1,637
2,650
45,990156,454
60,666
34,79516,011
7,506
2,346
7
6,622
96,168Reference: Positive spread and yields
Billions of yen, %For the years ended March 31,

Positive spread
Investment yield for core profit
Investment yield (general account)
Average assumed interest rate

2019
18.2
2.19%
1.94%
1.94%

2020
19.3
2.17%
1.85%
1.93%

Sony Financial Holdings Inc. Financial Data Book 202025

■ Sony Life Financial Data (Non-consolidated)

5 Fair Value Information on Securities (General Account)5-01 Fair value information on securities
Valuation gains (losses) on trading securities
Millions of yen

2020

2019

Net valuation
Net valuation
gains (losses)
gains (losses)
Balance sheet recorded in Balance sheet recorded inamountincomeincomeamountAs of March 31,

Trading securities

1,321

(160)

̶

160

Fair value information on securities
a. Securities with fair value (except trading securities)
Millions of yen
2019

As of March 31,

Carrying
amountFair value

Net unrealized
gains (losses)

Unrealized
gains

Unrealized
losses

Held-to-maturity securities

6,770,008

8,800,847

2,030,838

2,051,389

20,551

680,757

764,282

83,52583,733

208

̶

̶

̶

̶

̶

964,854

1,132,524

167,670

169,8102,140

867,645

1,024,732

157,086

157,086

̶

Japanese stocks

9,685

19,143

9,458

9,555

96

Foreign securities

87,357

88,341

984

3,027

2,043

79,56881,811

2,243

3,027

784
1,259

Policy-reserve-matching bonds
Stocks of subsidiaries and affiliated companies
Available-for-sale securities
Japanese bonds

Bonds
Stocks, etc.

7,788

6,529

(1,259)̶

Other securities

165

307

141

141

̶

Monetary claims purchased

̶

̶

̶

̶

̶

Certificates of deposit

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

Total

8,415,620

10,697,654

2,282,034

2,304,933

22,899Japanese bonds

7,858,097

10,129,659

2,271,562

2,277,594

6,032

OthersJapanese stocks

9,685

19,143

9,458

9,555

96

Foreign securities

547,671548,543872

17,642

16,770

Bonds

539,883

542,0142,131

17,642

15,511

Stocks, etc.

7,788

6,529

(1,259)̶

1,259

Other securities

165

307

141

141

̶

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 andExchange Act of Japan.
2. Carrying amount and net unrealized gains (losses) on money held in trust, including items other than trading securities, amounted to¥232,566 million and ¥37,275 million, as of March 31, 2019, respectively.

26

Sony Financial Holdings Inc. Financial Data Book 2020

■ Sony Life Financial Data (Non-consolidated)

Millions of yen

2020
Net unrealized Unrealized
gains
gains (losses)

Unrealized
losses

As of March 31,

Carrying
amountFair value

Held-to-maturity securities

7,349,139

9,768,470

2,419,331

2,425,393

6,061

855,937

997,896

141,958

142,397

438

̶

̶

̶

̶

̶

66

Policy-reserve-matching bonds
Stocks of subsidiaries and affiliated companies

967,259

1,137,460

170,201

170,267

Japanese bonds

873,327

1,007,815

134,487

134,515

28

Japanese stocks

4,825

9,587

4,762

4,800

37

Foreign securities

̶

Available-for-sale securities

89,106

120,057

30,95030,950

Bonds

87,634

118,584

30,95030,950̶

Stocks, etc.

1,472

1,472

̶

̶

̶

Other securities

̶

̶

̶

̶

̶

Monetary claims purchased

̶

̶

̶

̶

̶

Certificates of deposit

̶

̶

̶

̶

̶

Others

̶

̶

̶

̶

̶

Total

9,172,336

11,903,828

2,731,491

2,738,058

6,566Japanese bonds

8,230,025

10,590,705

2,360,679

2,367,208

6,528Japanese stocks

4,825

9,587

4,762

4,800

37

Foreign securities

937,485

1,303,535

366,049

366,049

̶

936,013

1,302,062

366,049

366,049

̶

1,472

1,472

̶

̶

̶

Other securities

̶

̶

̶

̶

̶

Monetary claims purchased

̶

̶

̶

̶

̶

Certificates of deposit

̶

̶

̶

̶

̶

Others

̶

̶

̶

̶

̶

Bonds
Stocks, etc.

Note: The above table includes assets that are permitted to be treated as equivalent to securities defined in the Financial Instruments andExchange Act of Japan.

b. Carrying amounts of securities for which fair value cannot be measured reliably
Millions of yen
As of March 31,

2020

2019

Held-to-maturity securities

̶̶

Unlisted foreign bonds

̶̶

Others̶̶̶̶

Stocks of subsidiaries and affiliated companies

16,276

39,682Available-for-sale securities

5,445

4,620

Unlisted Japanese stocks (except OTC stocks)

159

159

Unlisted foreign stocks (except OTC stocks)

355

243

Policy-reserve-matching bonds

Unlisted foreign bonds
Others
Total

̶

̶

4,929

4,216

21,72144,302

Sony Financial Holdings Inc. Financial Data Book 202027

■ Sony Life Financial Data (Non-consolidated)c. Fair value information consisting of those stated in the previous Table a. and Table b. after evaluating foreign exchange andother gains (losses)
Millions of yen
2019
As of March 31,

Held-to-maturity securities
Policy-reserve-matching bonds
Stocks of subsidiaries and affiliated companies
Available-for-sale securities
Japanese bonds
Japanese stocks
Foreign securities
Bonds
Stocks, etc.
Other securities
Monetary claims purchased
Certificates of deposit
Others
Total
Japanese bonds
Japanese stocks
Foreign securities
Bonds
Stocks, etc.
Other securities
Monetary claims purchased
Certificates of deposit
OthersCarrying
amount6,770,008
680,757
16,276970,299
867,645
9,845
87,712
79,568
8,144
5,095

Fair value
8,800,847
764,282
16,2801,141,169
1,024,732
19,30389,867
81,811
8,055
7,265

̶

̶

̶

̶

̶

Net unrealized
gains (losses)
2,030,838
83,525
4
170,869
157,086
9,458
2,154
2,243
(88)
2,170

Unrealized
gains
2,051,389
83,733
4
173,361
157,086
9,555
4,198
3,027
1,170
2,521

Unrealized
losses
20,551
208

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

8,437,341
7,858,097
17,832556,316
539,883
16,433
5,095

10,722,579
10,129,659
27,290558,364542,014
16,3497,265

2,285,238
2,271,562
9,458
2,047
2,131
(84)
2,170

2,308,489
2,277,594
9,555
18,817
17,642
1,175
2,521

23,251
6,032
96
16,77015,511
1,259
351

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

2,491
̶

96
2,043
784
1,259
351

Millions of yen

2020
As of March 31,

Held-to-maturity securities
Policy-reserve-matching bonds
Stocks of subsidiaries and affiliated companies
Available-for-sale securities
Japanese bonds
Japanese stocks
Foreign securities
Bonds
Stocks, etc.
Other securities
Monetary claims purchased
Certificates of deposit
Others
Total
Japanese bonds
Japanese stocks
Foreign securities
Bonds
Stocks, etc.
Other securities
Monetary claims purchased
Certificates of deposit
Others28

Sony Financial Holdings Inc. Financial Data Book 2020

Net unrealized Unrealized
gains
gains (losses)
2,419,331
2,425,393
141,958
142,397̶
(21)
171,970
172,626
134,487
134,515
4,762
4,800
32,00632,00630,95030,950
1,056
1,056
712
1,303

Unrealized
losses
6,061
438
21
656
28
37

Carrying
amount
7,349,139
855,937
39,682
971,879
873,327
4,985
89,34987,6341,715
4,216

Fair value
9,768,470
997,896
39,661
1,143,849
1,007,815
9,747
121,356
118,584
2,771
4,929

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

9,216,639
8,230,025
23,301
959,095
936,01323,081
4,216

11,949,878
10,590,705
28,064
1,326,179
1,302,062
24,116
4,929

2,733,239
2,360,679
4,762
367,084
366,049
1,034
712

2,740,417
2,367,208
4,800
367,105
366,049
1,056
1,303

7,177
6,528
37
21

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶
̶
̶

590

̶

21
590

■ Sony Life Financial Data (Non-consolidated)

5-02

Fair value information on money held in trust (general account)
Millions of yen

2020

2019

As of March 31,

Money held in trust

Net
Balanceunrealized
Balancesheet
gains Unrealized Unrealized sheet
gains
lossesamount Fair value (losses)
amount̶̶̶269,387 269,387
40

Fair
value
40

Net
unrealized
gains Unrealized Unrealized(losses)
gains
losses̶̶̶

Note: The amount of jointly invested monetary trusts that is included in the table above is ¥40 million as of March 31, 2019 and 2020,
respectively.

Money held in trust for investment
Not applicable

Money held in trust for held-to-maturity, policy-reserve-matching and other
Millions of yen

2020

2019

As of March 31,

Netunrealized
Carrying
gains Unrealized Unrealized Carrying
amount Fair value (losses)
gains
losses amountMoney held in trust for̶̶
held-to-maturity
Money held in trust for̶̶policy-reserve- matching
Other money held in
trust
232,071 269,346

5-03

Fair
value

Net
unrealized
gains Unrealized Unrealized(losses)
gains
losses

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

37,27537,275

̶

̶

̶

̶

̶

̶

Fair value information on derivative transactions (general account) (total ofderivatives to which hedge accounting is applied and derivatives to which
hedge accounting is not applied)

1. Breakdown of valuation gains (losses) (Derivatives to which hedge accounting is applied and derivatives to which hedge
accounting is not applied)
Millions of yen

2020

2019

As of March 31,

Interest
rate- Currency- Stockrelated related related

Hedge accounting is applied̶Hedge accounting is not applied
Total

̶

Interest
Bondrate- Currency- Stock- Bondrelated Others Total related related related related Others Total

̶

̶

̶

̶

̶

̶

(409) (7,331)̶̶ (7,741)

̶(409) (7,331)̶̶ (7,741)

̶

̶

̶

̶

̶

̶

215 17,346

̶̶ 17,561

̶

215 17,346

̶̶ 17,561

Note: Valuation gains (losses) on derivatives to which hedge accounting is not applied are recorded in the statements of income.

Sony Financial Holdings Inc. Financial Data Book 202029

■ Sony Life Financial Data (Non-consolidated)

2. Interest rate derivatives
Not applicable
3. Currency derivatives
Millions of yen

2020

2019

As of March 31,

Notional
amountOver 1 year Fair value
total

Valuation
gains(losses)

Notional
Valuationamountgains
totalOver 1 year Fair value (losses)

Over-the-counter transactions
Forward foreign exchanges
21,154

̶

(409)

(409)

11,809

̶

215

215

U.S. dollars

12,740

̶

(354)

(354)

3,262

̶

(2)

(2)

Euro

8,413

̶

(54)

(54)

8,547

̶

217

Sold

Total

217
215

(409)

Notes: 1. The fair value of forward foreign exchanges is calculated using the discounted present value based on the fiscal year-end interestrate.
2. “Valuation gains (losses)” are stated at fair value.

4. Stock derivatives
Millions of yen

2020

2019

As of March 31,

Notional
amountOver 1 year Fair value
total

Valuation
gains(losses)

Notional
Valuationamountgains
totalOver 1 year Fair value (losses)

ListedStock index futures
Sold

58,724

̶

308

63,107

̶(7,640)308

39,525

̶(934)(7,640)103,408̶

18,280(934)Over-the-counter transactions
Total return swap
Sold
Total

(7,331)

Notes: 1. Fair value of stock index futures is the closing price on the Exchange at the end of the fiscal year.
2. Fair value of total return swap is calculated using the stock price, etc. at the end of the fiscal year.
3. “Valuation gains (losses)” are stated at fair value.

5. Bond derivatives
Not applicable
6. Others
Not applicable30

Sony Financial Holdings Inc. Financial Data Book 2020

18,28017,346

■ Sony Life Financial Data (Non-consolidated)

6 Fair Value Information on Securities (Company Total)
6-01

Fair value information on securities

Valuation gains (losses) on trading securities
Millions of yen

2020

2019

Net valuation
Net valuation
gains (losses)
gains (losses)
Balance sheet recorded in Balance sheet recorded inamountincomeincomeamountAs of March 31,

Trading securities

1,185,507

30,0701,241,363(108,018)

Fair value information on securities
a. Securities with fair value (except trading securities)
Millions of yen
2019

As of March 31,

Carrying
amountFair value

Net unrealized
gains (losses)

Unrealized
gains

Unrealized
losses

Held-to-maturity securities

6,770,008

8,800,847

2,030,838

2,051,389

20,551

680,757

764,282

83,52583,733

208

̶

̶

̶

̶

̶

964,854

1,132,524

167,670

169,810

2,140

Policy-reserve-matching bonds
Stocks of subsidiaries and affiliated companies
Available-for-sale securities
Japanese bonds

867,645

1,024,732

157,086

157,086

̶

Japanese stocks

9,685

19,143

9,458

9,555

96

Foreign securities

87,357

88,341

984

3,027

2,043

Bonds

79,56881,811

2,243

3,027

784

Stocks, etc.

7,788

6,529

(1,259)̶

1,259

Other securities

165

307

141

141

̶

Monetary claims purchased

̶

̶

̶

̶

̶

Certificates of deposit

̶

̶

̶

̶

̶

Others

̶

̶

̶

̶

̶

Total

8,415,620

10,697,654

2,282,034

2,304,933

22,899Japanese bonds

7,858,097

10,129,659

2,271,562

2,277,594

6,032

Japanese stocks

9,685

19,143

9,458

9,555

96

Foreign securities

547,671548,543872

17,642

16,770539,883

542,0142,131

17,642

15,511

Stocks, etc.

7,788

6,529

(1,259)̶

1,259

Other securities

165

307

141

141

̶

Monetary claims purchased

̶

̶

̶

̶

̶

Certificates of deposit

̶

̶

̶

̶

̶

Others

̶

̶

̶

̶

̶

Bonds

Notes: 1. The above table includes assets that are permitted to be treated as equivalent to securities defined in the Financial Instruments andExchange Act of Japan.
2. Carrying amount and net unrealized gains (losses) on money held in trust, including items other than trading securities, amounted to¥232,566 million and ¥37,275 million, as of March 31, 2019, respectively.

Sony Financial Holdings Inc. Financial Data Book 202031

■ Sony Life Financial Data (Non-consolidated)

Fair value information on securities (continued)
Millions of yen

2020
Net unrealized Unrealized
gains
gains (losses)

Unrealized
losses

As of March 31,

Carrying
amountFair value

Held-to-maturity securities

7,349,139

9,768,470

2,419,331

2,425,393

6,061

855,937

997,896

141,958

142,397

438

̶

̶

̶

̶

̶

66

Policy-reserve-matching bonds
Stocks of subsidiaries and affiliated companies

967,259

1,137,460

170,201

170,267

Japanese bonds

873,327

1,007,815

134,487

134,515

28

Japanese stocks

4,825

9,587

4,762

4,800

37

Foreign securities

89,106

120,057

30,95030,950̶

Bonds

87,634

118,584

30,95030,950̶

Stocks, etc.

1,472

1,472

̶

̶

̶

Other securities

̶

̶

̶

̶

̶

Monetary claims purchased

̶

̶

̶

̶

̶

Certificates of deposit

̶

̶

̶

̶

̶

Others

̶

̶

̶

̶

̶

Total

9,172,336

11,903,828

2,731,491

2,738,058

6,566Japanese bonds

8,230,025

10,590,705

2,360,679

2,367,208

6,528Japanese stocks

4,825

9,587

4,762

4,800

37

Foreign securities

937,485

1,303,535

366,049

366,049

̶

936,013

1,302,062

366,049

366,049

̶

1,472

1,472

̶

̶

̶

Other securities

̶

̶

̶

̶

̶

Monetary claims purchased

̶

̶

̶

̶

̶

Certificates of deposit

̶

̶

̶

̶

̶

Others

̶

̶

̶

̶

̶

Available-for-sale securities

Bonds
Stocks, etc.

Note: The above table includes assets that are permitted to be treated as equivalent to securities defined in the Financial Instruments andExchange Act of Japan.

○ Held-to-maturity securities

Millions of yen

2020

2019

Fair value Difference

2,051,389

7,110,414

9,535,807

2,425,393

8,311,604

2,040,902

6,371,113

8,509,573

2,138,459

206,330

216,817

10,487739,300

1,026,234

286,933

̶

̶

̶

̶

̶

̶

292,976

272,425(20,551)

238,724

232,663(6,061)(6,061)

As of March 31,

Fair value

Fair value exceeding balance sheet amount

6,477,032

8,528,421

Japanese bonds

6,270,702

Foreign securities
Other securities
Fair value not exceeding balance sheet amountJapanese bonds

103,822

97,983(5,839)238,724

232,663

Foreign securities

189,153

174,441(14,711)

̶

̶

̶

̶

̶

̶

̶

̶

̶

Others32

Difference

Balancesheet
amountBalancesheet
amountSony Financial Holdings Inc. Financial Data Book 2020

■ Sony Life Financial Data (Non-consolidated)○ Policy-reserve-matching bonds

Millions of yen

2020

2019

As of March 31,

Fair value exceeding balance sheet amountJapanese bonds
Foreign securities
Other securities
Fair value not exceeding balance sheet amountJapanese bonds
Foreign securities
Other securities

Balancesheet
amount662,919
600,83962,079Fair value
746,652
680,444
66,207

Difference
83,73379,605
4,128

Balancesheet
amount827,801
718,722
109,078

Fair value Difference
970,198
142,397
812,955
94,232
157,243
48,165

̶

̶

̶

̶

̶

̶

17,83815,0872,751

17,62914,894
2,735

(208)
(192)
(15)

28,13628,136

27,697
27,697

(438)
(438)

̶

̶

̶

̶

̶

̶

̶

̶

̶

Carrying
amount2019
Balancesheet
amountDifference

Carrying
amount2020
Balancesheet
amountDifference

930,381867,645
8,777
53,793165

1,100,192
1,024,732
18,33256,820307

169,810
157,086
9,555
3,027
141

961,134
869,036
4,463
87,634

1,131,401
1,003,552
9,264
118,584

170,267
134,515
4,800
30,950

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

34,47232,332(2,140)

̶

̶

̶

908
33,563811
31,520(96)(2,043)

6,125
4,291
361
1,472

6,059
4,263
323
1,472

(66)
(28)
(37)

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

○ Available-for-sale securities

Millions of yen

As of March 31,

Balance sheet amount exceeding carrying
amountJapanese bonds
Japanese stocks
Foreign securities
Other securities
Monetary claims purchased
Certificates of deposit
OthersBalance sheet amount not exceeding carrying
amountJapanese bonds
Japanese stocks
Foreign securities
Other securities
Monetary claims purchased
Certificates of deposit
Others̶b. Carrying amounts of securities for which fair value cannot be measured reliably
As of March 31,

Held-to-maturity securities
Unlisted foreign bonds
Others
Policy-reserve-matching bonds
Stocks of subsidiaries and affiliated companies
Available-for-sale securities
Unlisted Japanese stocks (except OTC stocks)
Unlisted foreign stocks (except OTC stocks)
Unlisted foreign bonds
Others
Total

Millions of yen
2020

2019
̶

̶

̶

̶

̶

̶

̶

̶

16,276
5,445
159
355

39,682
4,620
159
243

̶

̶

4,929
21,721

4,216
44,302

Sony Financial Holdings Inc. Financial Data Book 202033

■ Sony Life Financial Data (Non-consolidated)c. Fair value information consisting of those stated in the previous Table a. and Table b. after evaluating foreign exchange andother gains (losses)
Millions of yen
2019
As of March 31,

Held-to-maturity securities
Policy-reserve-matching bonds
Stocks of subsidiaries and affiliated companies
Available-for-sale securities
Japanese bonds
Japanese stocks
Foreign securities
Bonds
Stocks, etc.
Other securities
Monetary claims purchased
Certificates of deposit
Others
Total
Japanese bonds
Japanese stocks
Foreign securities
Bonds
Stocks, etc.
Other securities
Monetary claims purchased
Certificates of deposit
OthersCarrying
amount6,770,008
680,757
16,276970,299
867,645
9,845
87,712
79,568
8,144
5,095

Fair value
8,800,847
764,282
16,2801,141,169
1,024,732
19,30389,867
81,811
8,055
7,265

̶

̶

̶

̶

̶

Net unrealized
gains (losses)
2,030,838
83,525
4
170,869
157,086
9,458
2,154
2,243
(88)
2,170

Unrealized
gains
2,051,389
83,733
4
173,361
157,086
9,555
4,198
3,027
1,170
2,521

Unrealized
losses
20,551
208

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

8,437,341
7,858,097
17,832556,316
539,883
16,433
5,095

10,722,579
10,129,659
27,290558,364542,014
16,3497,265

2,285,238
2,271,562
9,458
2,047
2,131
(84)
2,170

2,308,489
2,277,594
9,555
18,817
17,642
1,175
2,521

23,251
6,032
96
16,77015,511
1,259
351

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

2,491
̶

96
2,043
784
1,259
351

Millions of yen

2020
As of March 31,

Held-to-maturity securities
Policy-reserve-matching bonds
Stocks of subsidiaries and affiliated companies
Available-for-sale securities
Japanese bonds
Japanese stocks
Foreign securities
Bonds
Stocks, etc.
Other securities
Monetary claims purchased
Certificates of deposit
Others
Total
Japanese bonds
Japanese stocks
Foreign securities
Bonds
Stocks, etc.
Other securities
Monetary claims purchased
Certificates of deposit
Others34

Sony Financial Holdings Inc. Financial Data Book 2020

Net unrealized Unrealized
gains
gains (losses)
2,419,331
2,425,393
141,958
142,397̶
(21)
171,970
172,626
134,487
134,515
4,762
4,800
32,00632,00630,95030,950
1,056
1,056
712
1,303

Unrealized
losses
6,061
438
21
656
28
37

Carrying
amount
7,349,139
855,937
39,682
971,879
873,327
4,985
89,34987,6341,715
4,216

Fair value
9,768,470
997,896
39,661
1,143,849
1,007,815
9,747
121,356
118,584
2,771
4,929

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

9,216,639
8,230,025
23,301
959,095
936,01323,081
4,216

11,949,878
10,590,705
28,064
1,326,179
1,302,062
24,116
4,929

2,733,239
2,360,679
4,762
367,084
366,049
1,034
712

2,740,417
2,367,208
4,800
367,105
366,049
1,056
1,303

7,177
6,528
37
21

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶
̶
̶

590

̶

21
590

■ Sony Life Financial Data (Non-consolidated)

6-02

Fair value information on money held in trust (company total)

As of March 31,

Money held in trust

Millions of yen
2020
Net
unrealized
gains Unrealized Unrealized
Fairvalue (losses)
gains
losses
̶
̶
̶
40

2019
Net
unrealized
Balance
Balancegains Unrealized Unrealized sheet
sheet
gains
lossesamount Fair value (losses)
amount̶̶̶269,387 269,387
40

Note: The amount of jointly invested monetary trusts that is included in the table above is ¥40 million as of March 31, 2019 and 2020,
respectively.

Money held in trust for investment
Not applicable

Money held in trust for held-to-maturity, policy-reserve-matching and other

As of March 31,

2019
Net
unrealized
Carrying
gains Unrealized Unrealized Carrying
amount Fair value (losses)
gains
losses amountMoney held in trust for̶̶
held-to-maturity
Money held in trust for̶̶policy-reserve-matching
Other money heldin trust
232,071 269,346

6-03

Millions of yen
2020
Net
unrealized
gains Unrealized Unrealized
Fairvalue (losses)
gains
losses

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

37,27537,275

̶

̶

̶

̶

̶

̶

Fair value information on derivative transactions (company total)

Qualitative Information
1. Transaction details
The main derivative transactions used by Sony Life are as follows:• Currency-related: Forward foreign exchange transactions• Stock-related:
Stock index futures trading, total return swap trading
2. Purpose of use and policy on derivative transactions
Sony Lifeʼs policy is to conduct derivative transactions to reduce risks related to its holdings of assets and liabilities, anddoes not engage in speculative derivative transactions.
• Currency-related: The purpose is to hedge foreign currency-related risk related to its holdings of assets and the minimum guaranteed for individual variable life insurance.
• Stock-related:
The purpose is to hedge stock-related risk related to its holdings of assets and the minimum guaranteed for individual variable life insurance.
3. Risk details
The risk of fluctuations in market value (currency-related risk and stock-related risk) is inherent to derivative transactions
employed by Sony Life. However, as these transactions are conducted primarily to reduce risk related to its holdings ofassets and liabilities, the total risk related to derivative transactions and their underlying assets and liabilities is limited. Credit
risk is inherent to derivative instruments, but when conducting transactions, Sony Life selects parties that it believes pose
little risk of default.
4. Risk management systems
Sony Lifeʼs balance of derivative transactions is within the limits that Sony Life has set in-house.
On transactions conducted by the division in charge of investment, the administrative division receives reports directly fromthe transaction counterparty. This system enables the administrative division and the investment division to independently
determine derivative positions and transaction profits and losses. In addition, the management of risks related to derivativetransactions is conducted strictly by the department in charge of supervision. Also, the risk management division regularly
reports the overall risk status to Sony Lifeʼs Board of Directors and Executive Committee.
5. Supplemental information regarding quantitative information
Sony Life does not employ hedge accounting for derivative transactions.

Quantitative Information
1. Breakdown of valuation gains (losses) (Derivatives to which hedge accounting is applied and derivatives to which hedge
accounting is not applied)
Millions of yen
2019
2020
Interest
Interest
rate- Currency- StockBondrate- Currency- Stock- Bondrelated related related related Others Total related related related related Others Total
As of March 31,
Hedge accounting is
̶
̶
̶
̶
̶
̶
̶
̶
̶
̶
̶
̶
appliedHedge accounting is̶̶̶ (7,741)
̶̶̶ 17,561(409) (7,331)
215 17,346
not applied̶̶̶ (7,741)
̶̶̶ 17,561
Total(409) (7,331)
215 17,346
Note: Valuation gains (losses) on derivatives to which hedge accounting is not applied are recorded in the statements of income.

Sony Financial Holdings Inc. Financial Data Book 202035

■ Sony Life Financial Data (Non-consolidated)

2. Derivatives to which hedge accounting is not applied① Interest rate derivatives

Not applicable② Currency derivatives

Millions of yen

2020

2019
As of March 31,

Over-the-counter transactions
Forward foreign exchanges
Sold
U.S. dollars
Euro
Total

Notional
amountOver 1 year Fair value
total

21,154
12,740
8,413

̶
̶
̶

(409)
(354)
(54)

Valuation
gains(losses)

(409)
(354)
(54)
(409)

Valuation
Notional
gains
amounttotal
Over 1 year Fair value (losses)
11,809
3,262
8,547

̶
̶
̶

215
(2)
217

215
(2)
217
215

Notes: 1. The fair value of forward foreign exchanges is calculated using the discounted present value based on the fiscal year-end interestrate.
2. “Valuation gains (losses)” are stated at fair value.

③ Stock derivatives

Millions of yen

2020

2019
As of March 31,

ListedStock index futures
Sold
Over-the-counter transactions
Total return swap
Sold
Total

Notional
amountOver 1 year Fair value
total

58,724

̶

308

63,107

̶(7,640)

Valuation
gains(losses)

Valuation
Notional
gains
amounttotal
Over 1 year Fair value (losses)
39,525

̶

(934)

(934)

(7,640) 103,408(7,331)

̶

18,28018,28017,346308

Notes: 1. Fair value of stock index futures is the closing price on the Exchange at the end of the fiscal year.
2. Fair value of total return swap is calculated using the stock price, etc. at the end of the fiscal year.
3. “Valuation gains (losses)” are stated at fair value.

④ Bond derivatives

Not applicable⑤ Others

Not applicable
3. Derivatives to which hedge accounting is applied① Interest rate derivatives

Not applicable② Currency derivatives

Not applicable③ Equity derivatives

Not applicable④ Bond derivatives

Not applicable⑤ Others

Not applicable

36

Sony Financial Holdings Inc. Financial Data Book 2020

■ Sony Life

Financial Data (Consolidated)
Consolidated Balance SheetSony Life Insurance Co., Ltd. and consolidated subsidiaries
As of March 31,

Millions of yen

2020
AmountAssets:Cash and deposits
Money held in trust
Securities
Loans
Tangible fixed assets
Land
Buildings
Leased assets
Other tangible fixed assets
Intangible fixed assets
Software
Goodwill
Due from reinsurers
Other assets
Net defined benefit asset
Deferred tax assets
Reserve for possible loan losses

224,211
14,96011,055,749
208,632
93,61964,71527,843408
651
32,20828,6293,579
4,837
140,362
3,391
19,598(652)

Total Assets

11,796,918

Liabilities:
Policy reserves and others
Reserve for outstanding claims
Policy reserves
Reserve for policyholdersʼ dividends
Due to agencies
Due to reinsurers
Other liabilities
Net defined benefit liability
Reserve under the special laws
Reserve for price fluctuations
Deferred tax liabilities
Deferred tax liabilities on land revaluation

10,551,976
40,883
10,506,684
4,407
2,471
5,356
610,032
30,682
52,792
52,792
142
109

Total Liabilities

Net Assets:
Common stock
Capital surplus
Retained earnings
Total shareholdersʼ equity
Net unrealized gains (losses) on available-for-sale securities, net of taxes
Land revaluation, net of taxes
Remeasurements of defined benefit plans, net of taxes
Total accumulated other comprehensive income
Total Net Assets
Total Liabilities and Net Assets

11,253,564
70,0005,865
347,230
423,095
123,443(2,439)(745)
120,259543,354
11,796,918

Sony Financial Holdings Inc. Financial Data Book 202037

Consolidated Statement of Income
Sony Life Insurance Co., Ltd. and consolidated subsidiaries
For the year ended March 31,

Millions of yen

2020
AmountOrdinary Revenues
Income from insurance premiums
Investment income
Interest income and dividends
Income from money held in trust, net
Gains on trading securities, net
Gains on sale of securities
Gains on derivatives, net
Other investment income
Other ordinary income
Ordinary Expenses
Insurance claims and other payments
Insurance claims
Annuity payments
Insurance benefits
Surrender payments
Refund to policyholders
Provision for policy reserves and others
Provision for reserve for outstanding claims
Provision for policy reserves
Interest portion of reserve for policyholdersʼ dividends
Investment expenses
Interest expenses
Losses on sale of securities
Losses on valuation of securities
Foreign exchange losses, net
Provision for reserve for possible loan losses
Depreciation of real estate for rent and others
Other investment expenses
Losses on separate accounts, net
Operating expenses
Other ordinary expenses
Ordinary Profit
Extraordinary Gains
Gains on step acquisitions
Extraordinary Losses
Losses on disposal of fixed assets
Impairment losses
Provision for reserve under the special laws
Provision for reserve for price fluctuations
Losses on valuation of shares of subsidiaries
Provision for Reserve for Policyholdersʼ Dividends

Income Before Income Taxes
Income Taxes - Current
Income Taxes - Deferred

Total Income Taxes
Net Income
Profit Attributable to Owners of the Parent
38

Sony Financial Holdings Inc. Financial Data Book 2020

1,604,755
1,340,661
208,620
181,812
4,086
317
3,637
18,766
1
55,473
1,510,373
521,198
98,533
15,036
157,074
231,772
18,781
678,7242,444
676,280
091,943
5,064
50
6,316
4,884
43
1,637
2,812
71,132
157,726
60,78094,381
248
248
3,026
95
21
2,665
2,665
244
2,422
89,181
31,334(5,052)
26,28262,89962,899

■ Sony Life

Performance Indicators (Non-consolidated)
1

Key Performance Indicators for Past Five Years
Millions of yen

For the years ended March 31,

2016

2017

2018

2019

2020

44,749,196

47,185,239

49,173,547

51,474,244

53,249,230

42,293,769

44,313,382

45,892,442

47,676,209

48,778,991

Individual annuities

856,0621,020,810

1,360,998

1,894,670

2,668,626

Group life insurance

1,599,364

1,851,046

1,920,106

1,903,365

1,801,612

Policy amount in force for group annuities

13,093

11,57010,037

8,664

7,364

Annualized premiums from insurance
in force

781,315820,856

848,823

889,347

922,781

Policy amount in force
Individual life insurance

Medical protection, living benefit
protection and other products

179,707

187,449

191,895

197,520

201,358

5,152,456

5,004,921

5,346,249

6,177,542

5,416,127

4,871,062

4,765,257

4,912,156

5,573,556

4,563,208

Individual annuities

280,332

192,247

375,820576,937

835,746

Group life insurance

1,061

47,41558,272

27,04917,17285,01878,12773,07387,91882,146

15,717

15,71812,984

15,251

12,901

1,230,141

1,243,739

1,351,076

1,464,218

1,580,117

1,028,048

956,733

1,059,269

1,136,104

1,330,860

170,517245,339

243,293278,935

193,718

New policy amountIndividual life insurance

Annualized premiums from new policies
Medical protection, living benefit
protection and other products
Ordinary revenues
Income from insurance premiums
Investment income

1,169,348

1,183,558

1,294,738

1,384,406

1,491,396

Insurance claims and other payments

363,370

372,407436,538

457,252

511,945

Investment expenses

23,39936,19633,121

24,63868,127

Operating expenses

Ordinary expenses

133,334

137,094

139,937

146,984

156,454

Ordinary profit

60,79260,18056,33879,812

88,720Net income

37,09635,18545,13449,60256,743

Core profit

43,01983,831

81,384

97,242

96,168

Common stock
Shares issued and outstanding(thousands of shares)

70,00070,00070,00070,00070,00070,00070,00070,00070,00070,0008,035,408

8,873,613

9,567,689

10,380,148

11,237,124

850,323

989,605

1,128,817

1,300,701

1,323,948

7,336,533

7,929,944

8,566,075

9,268,422

9,959,832

171,649

180,374

189,486

198,410

208,632

Securities

7,273,361

8,093,192

8,765,967

9,523,877

10,629,972

Solvency margin ratio

2,722.8%

2,568.8%

2,624.3%

2,590.5%

2,476.3%

Number of employees

7,289

7,865

8,246

8,461

8,642

Total assets
Separate account assets
Policy reserves
Loans

Notes: 1. Policy amount in force is the total of individual life insurance, individual annuities and group life insurance. Policy amount 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 commenced and (b) the amount of policy reserves for policies for which annuity payments have commenced.
2. The policy amount in force for group annuities is equal to the amount of policy reserves.
3. New policy amount is the total of individual life insurance, individual annuities and group life insurance. New policy amount forindividual annuities is equal to the funds to be held at the time annuity payments commence.
4. Annualized premiums, which are the total of individual life insurance and individual annuities, are converted to a per-year premium
amount by multiplying individual premiums by a coefficient corresponding to the premium payment method. (For single premium
policies, premiums are divided by the number of coverage years.)
5. Annualized premiums for “medical protection, living benefit protection and other products ” include those for medical protection benefits (hospitalization benefits, surgical benefits, etc.) and living benefit protection (benefits for specific diseases, nursing care benefits,etc.).
6. Separate account assets included in total assets include a portion of surplus investment funds, which amounted to ¥1,740 million asof March 31, 2020.

Sony Financial Holdings Inc. Financial Data Book 202039

■ Sony Life Performance Indicators (Non-consolidated)

2

Key Performance Indicators

2-01

Policy amount in force and new policy amount

Policy amount in force
NumberAs of March 31,

Individual life
insurance
Individual annuities
Group life insuranceGroup annuities

7,513,563
334,433̶̶

2019Comparison to
March 31, 2018 Amount
102.7%
132.4
̶̶

Millions of yen, %2020
Comparison toComparison toComparison to
March 31, 2018 Number March 31, 2019 Amount March 31, 201947,676,209
1,894,670
1,903,365
8,664

103.9%
139.2
99.1
86.3

7,708,641
452,214̶̶

102.6% 48,778,991
135.2
2,668,626
̶
1,801,612
̶
7,364

102.3%
140.8
94.7
85.0

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 tocommence for policies for which annuity payments have not yet commenced and (b) the amount of policy reserves for policies forwhich annuity payments have commenced.
2. The policy amount in force for group annuities is equal to the amount of policy reserves.

New policy amountMillions of yen, %2019

For the year ended March 31,

Individual life insurance
Individual annuities
Group life insuranceGroup annuities

Number
520,620
88,566̶̶Comparison toprevious year
108.7%
144.3
̶̶

Amount
5,573,556
576,937
27,049̶Comparison toprevious year
113.5%
153.5
46.4
̶

Amount, ofwhich, newpolicies
5,573,556
576,937
27,049Amount, ofwhich, increase
from conversion
̶
̶
̶
̶

̶

Millions of yen, %2020

For the year ended March 31,

Individual life insurance
Individual annuities
Group life insuranceGroup annuities

Comparison toprevious year
Number509,584
97.9%
126,758
143.1
̶
̶

̶
̶

Amount, ofAmount, ofComparison to which, new which, increase
policiesfrom conversion
previous year
Amount̶
4,563,208
81.9%
4,563,208
̶
835,746144.9
835,746̶
17,172
63.5
17,172̶̶̶̶

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 sum of the initial premium payments.

2-02

Annualized premiums

Policy amount in force
As of March 31,

Individual life insurance
Individual annuities
Total
Medical protection, living benefit protection and other products

2019
Comparison to
AmountMarch 31, 2018836,267
103.6%
53,079128.3
889,347104.8
197,520
102.9

Millions of yen, %2020
Comparison to
March 31, 2019
Amount852,794
102.0%
69,986131.9
922,781103.8
201,358
101.9

2019
Comparison to
Amountprevious year
74,702116.9%
13,216
143.7
87,918120.3
15,251
117.5

Millions of yen, %2020
Comparison toprevious year
Amount63,49685.0%
18,650141.1
82,14693.4
12,901
84.6

New policies
For the years ended March 31,

Individual life insurance
Individual annuities
Total
Medical protection, living benefit protection and other products

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 diseases, nursing
care benefits, etc.)

40

Sony Financial Holdings Inc. Financial Data Book 2020

■ Sony Life Performance Indicators (Non-consolidated)
2-03

Policy amount in force and new policy amount by product

Policy amount in force by productAs of March 31,

Individual life insurance products
Pure death-protection insurance
Variable life insurance (whole life type)
U.S. dollar-denominated whole life insurance
U.S. dollar-denominated single premium whole life
insurance (non-notification type)
U.S. dollar-denominated living benefit whole life
insurance (living standard type)
Modified payment whole life insurance
Limited payment whole life insurance
Family insurance
Interest rate-sensitive whole life insurance
Whole life insurance (no selection type)
Single premium whole life insurance (non-notification type)
Living benefit insurance (whole life type)
Living benefit whole life insurance (living standard type)
Variable life insurance (term type)
Family income insurance
Living standard insurance
Level premium plan term life insurance
Decreasing term life insurance
Living benefit insurance (term type)
Living benefit term life insurance (living standard type)
Living benefit decreasing term life insurance (living
standard type)Level premium plan term life insurance (non-smoker
preferred risk)
Decreasing term life insurance (non-smoker preferred risk)
Family income insurance (non-smoker preferred risk)
Increasing term life insuranceLong-term level premium plan term life insurance (withdisability benefit)
Level premium plan term life insurance with reduced
surrender value (disability / nursing care type)
Increasing term life insurance (reduced surrender value)
Level premium plan term life insurance with nosurrender value
Level premium plan term life insurance with nosurrender value (disability / nursing care type)Level premium plan term life insurance with accident
coverage period
U.S. dollar-denominated level premium plan term life
insurance
Income protection insurance to cover three majordiseasesSemi-participating whole life nursing care insurance
Whole life nursing care insurance (reduced surrender value)
Cancer insurance
Whole life cancer insurance (08)Cancer hospitalization insurance
Comprehensive medical insurance
Comprehensive medical insurance (no surrender value) 18
Long-term comprehensive medical insurance
Semi-participating living standard insurance (joint type)
Term riders and others
Mixed insurance
Variable life insurance (limited term type)
U.S. dollar-denominated endowment insurance
U.S. dollar-denominated specialty endowment
insurance
Endowment insurance
Semi-participating endowment insurance
Specialty endowment insurance
Pure endowment insurance
Educational endowment insurance
Semi-participating educational endowment insurance
Total individual life insurance products
Individual annuity products
Semi-participating individual annuities
Individual variable annuities
OthersTotal individual annuity productsGroup life insurance productsGroup term life insuranceGroup welfare term life insurance
Non-participating group welfare term life insuranceGroup credit life insurance
Annuity payment rider
Total group life insurance productsGroup annuity products
New-type corporate annuities
Defined contribution corporate annuities
Total group annuity products
Medical protection insurance (group type)
Reinsurance recipients

Millions of yen

2020

2019
NumberAmountNumberAmount

5,814,145
836,700
273,462

44,066,490
4,319,548
2,145,338

6,005,350
830,917345,101

45,055,464
4,235,777
2,595,393

32,836

161,518

75,228360,779

86,726
13,217332,3741,130
498,577
3,270
12,315
502,744
138,836
12,713360,088
1,836
73,42068,25386,844
93,286482,670
112,757
2,587,955
10,2302,678,199
5,621
70,197
1,668,691
545,724
683,486
9,463,315
20,2201,428,493
1,254,085
742,013812,735

140,684
12,891
327,030
1,116
485,158
2,899
11,864490,981
136,745
15,422382,202
1,622
71,332
67,86086,468105,068

793,998
108,232
2,537,455
10,0682,588,541
5,034
67,751
1,615,889
532,715
857,489
10,106,217
16,756
1,377,408
1,241,608
726,590914,384

46,685539,915

69,353786,234

16,10817,24035,717
13659,653
271,206
779,823
1,685

15,61915,64832,688
8639,183
229,813
673,489735

65,1773,221,774

61,912

3,066,430

1,149
5,690

43,497
233,747

1,195
5,257

43,168219,142

54,1091,051,221

55,066

1,088,700

1,475

26,435

1,687

31,829

2,922

547

2,969

6,930

̶

̶

166

10,063

26,535
126,386
21,627208,267
83,411
25,546
1,559,079
78,9209,423
39[486,602]
497,116
152,548
24,157

20,449464,303
3,861
26,926
7,064

21,014
449,080
3,807
26,5796,932

585,456
3,113
4,144
758
6,928,096
1,789,706
569,972
80,84727,440122,586
21,840207,326
82,622
23,454
1,493,925
164,901
9,065
35[466,866]
539,986
185,790
39,870561,118
6,493
4,035
690
6,487,896
1,969,897
722,001
133,798

9,391
242,279
56,65312,0881,202,302
192,679
1,009,623
7,513,563

54,676
893,455
148,181
42,572
1,820,012
211,228
1,608,784
47,676,209

12,276
234,858
53,73813,454
1,163,305
211,436
951,869
7,708,641

73,201
854,313140,232
46,3501,753,629
232,598
1,521,031
48,778,991

79,100242,958
12,375
334,433

333,067
1,478,311
83,291
1,894,670

79,271
359,620
13,323452,214

328,7692,251,080
88,776
2,668,626

135,882
135,398
38,912
1,288,611
8
1,598,811

158,961
71,652
107,392
1,565,356
1
1,903,365

136,148
139,600
42,3681,245,465
3
1,563,584

154,000
72,930115,648
1,459,032
0
1,801,612

8,665
38,125
46,790

84
8,579
8,664

8,065
32,962
41,027

79
7,284
7,364

̶
̶

̶

̶
̶

̶
̶

̶

̶
̶

Notes: 1. “Term riders and others” includes, in addition to “term riders,” “living benefit whole life policy riders” and “semi-participating lump-sum
nursing care riders every five years.”
2. The number of policies in force for “term riders and others” is excluded from total individual life insurance products.
3. “Semi-participating individual annuities” and “Individual variable annuities” under individual annuity products refer to the policies forwhich annuity payments have not yet commenced.
The amounts of policies for which annuity payments have not yet commenced are the funds to be held at the time annuity payments
are to commence.
4. “Others” under individual annuity products includes “semi-participating nursing care riders,” “semi-participating fixed individual
annuity riders,” and the policies for which annuity payments have commenced.
The amounts of policies for which annuity payments have commenced are those of policy reserves.
5. The numbers of policies for group life insurance products, group annuity products, medical protection insurance (group type) andreinsurance recipients reflect the total numbers of insured parties.
6. The amount of “Annuity payment rider” under group life insurance products is equal to the sum of (a) the funds to be held at the timeannuity 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.
7. The amount of policies in force for group annuity products is equal to the amount of policy reserves.
8. The amount of medical protection insurance (group type) is equal to the daily benefits for hospitalization.

Sony Financial Holdings Inc. Financial Data Book 202041

■ Sony Life Performance Indicators (Non-consolidated)
New policy amount by productMillions of yen

2020

2019
For the years ended March 31,

Individual life insurance products
Pure death-protection insurance
Variable life insurance (whole life type)
U.S. dollar-denominated whole life insurance
U.S. dollar-denominated single premium whole life
insurance (non-notification type)
U.S. dollar-denominated living benefit whole life
insurance (living standard type)
Modified payment whole life insurance
Limited payment whole life insurance
Family insurance
Interest rate-sensitive whole life insurance
Whole life insurance (no selection type)
Single premium whole life insurance (non-notification type)
Living benefit insurance (whole life type)
Living benefit whole life insurance (living standard type)
Variable life insurance (term type)
Family income insurance
Living standard insurance
Level premium plan term life insurance
Decreasing term life insurance
Living benefit insurance (term type)
Living benefit term life insurance (living standard type)
Living benefit decreasing term life insurance (living
standard type)Level premium plan term life insurance (non-smoker
preferred risk)
Decreasing term life insurance (non-smoker preferred risk)
Family income insurance (non-smoker preferred risk)
Increasing term life insuranceLong-term level premium plan term life insurance (withdisability benefit)
Level premium plan term life insurance with reduced
surrender value (disability / nursing care type)
Increasing term life insurance (reduced surrender value)
Level premium plan term life insurance with nosurrender value
Level premium plan term life insurance with nosurrender value (disability / nursing care type)Level premium plan term life insurance with accident
coverage period
U.S. dollar-denominated level premium plan term life
insurance
Income protection insurance to cover three majordiseasesSemi-participating whole life nursing care insurance
Whole life nursing care insurance (reduced surrender
value)
Cancer insurance
Whole life cancer insurance (08)Cancer hospitalization insurance
Comprehensive medical insurance
Comprehensive medical insurance (no surrender value) 18
Long-term comprehensive medical insurance
Semi-participating living standard insurance (joint type)
Term riders and others
Mixed insurance
Variable life insurance (limited term type)
U.S. dollar-denominated endowment insurance
U.S. dollar-denominated specialty endowment
insurance
Endowment insurance
Semi-participating endowment insurance
Specialty endowment insurance
Pure endowment insurance
Educational endowment insurance
Semi-participating educational endowment insurance
Total individual life insurance products

42Sony Financial Holdings Inc. Financial Data Book 2020

NumberNumberAmountAmount435,999
11,99872,322

5,311,248
53,113
534,509416,279
12,88979,635

4,223,519
65,531
596,503

18,777

93,33742,942

199,848

58,758329,438̶̶

57,069342,551

1,822

9,104

1,320

8,550

(7)

(43)

̶
̶

̶

̶

̶

(1)
8

(14)
9

̶

̶

̶
̶

1,460
4,194
6,807
65,591

5,436
16,274
393,758
2,235,078

1,149
3,215
3,222
46,188

4,853
16,154
199,333
1,631,720

̶
̶

̶

̶

5,024
6,945
6,256
22,436

92,810191,92147,454
224,307

4,052
4,639
5,128
17,03082,804
134,281
35,868
153,683

24,254

283,816

24,841

291,308

1,316

59,540

̶
̶
̶

̶
̶
̶

808

37,672

4,336

207,090673

24,094

227
487

8,143
19,399

109
38

3,338
1,103

6,656

162,980

5,050

127,006

448

8,552

326

7,879

2,922

547

106

16

̶

̶

168

10,177

2,586
754

1,934
2,960

2,326
486

1,765
2,479

1,292
5,971
3,676
1,148
17,81079,719

76
579
313

99
572
256

4,130
3,137

̶
̶

̶
̶

1,200
5,754
2,939
378
2,990
89,617(1)[13,497]
60,79934,575
11,350
2,391
9,866
850
1,767
23,822
23,823(1)
520,620

̶

̶

̶

̶
̶
̶

̶

̶
̶
̶

̶

1,669
3,516

̶

̶
̶

321,504
233,838
143,980
35,154[9,984]
72,82838,99016,573238,921316,290
182,626
58,283

11,47034,4403,294
5,498
28,46828,469(0)5,573,556

3,334
10,774916
2,241
20,477
20,474
3
509,584

23,01240,814
3,740
7,814
23,39923,3945
4,563,208

■ Sony Life Performance Indicators (Non-consolidated)
Individual annuity products
Semi-participating individual annuities
Individual variable annuities
OthersTotal individual annuity productsGroup life insurance productsGroup term life insuranceGroup welfare term life insurance
Non-participating group welfare term life insuranceGroup credit life insurance
Annuity payment rider
Total group life insurance productsGroup annuity products
New-type corporate annuities
Defined contribution corporate annuities
Total group annuity products
Medical protection insurance (group type)
Reinsurance recipients

2,002
86,564

6,676
570,261

2,532
124,226

8,594
827,151
835,746

̶̶

88,566576,937

126,758

̶

715
7,701
9,981

48
2,877
24,123

̶

̶

̶
̶

̶
̶

1,646
5,204

2,985
14,186

18,397

27,0496,850

17,172

̶
̶
̶
̶
̶

̶
̶
̶
̶
̶

̶
̶
̶
̶
̶

̶
̶
̶
̶
̶

̶
̶

̶

̶
̶

Notes: 1. “Term riders and others” includes, in addition to “term riders,” “living benefit whole life policy riders” and “semi-participating lump-sum
nursing care riders every five years.”
2. The number of policies in force for “Term riders and others” is excluded from total individual life insurance products.
3. Figures for individual annuity products show the funds to be held at the time annuity payments are to commence.
4. The number of new policies for group life insurance products, group annuity products, medical protection insurance (group type) andreinsurance recipients reflect the total number of insured parties.
5. The new policy amount for group annuity products is equal to the sum of the initial premium payments.
6. The amount of medical protection insurance (group type) is equal to the daily benefits for hospitalization.

Sony Financial Holdings Inc. Financial Data Book 202043

■ Sony Life Performance Indicators (Non-consolidated)

2-04

Policy amount in force by insurance function

As of March 31,

Death protection
Ordinary deathIndividual life insurance
Individual annuities
Group life insuranceGroup annuities
Total, including others
Accidental deathIndividual life insurance
Individual annuities
Group life insuranceGroup annuities
Total, including others
Death protection with other conditions
Individual life insurance
Individual annuities
Group life insuranceGroup annuities
Total, including others
Living protection
Maturity and living benefits
Individual life insurance
Individual annuities
Group life insuranceGroup annuities
Total, including others
Annuities
Individual life insurance
Individual annuities
Group life insuranceGroup annuities
Total, including others
OthersIndividual life insurance
Individual annuities
Group life insuranceGroup annuities
Total, including others
Hospitalization protection
Accidental hospitalization
Individual life insurance
Individual annuities
Group life insuranceGroup annuities
Total, including others
Disease hospitalization
Individual life insurance
Individual annuities
Group life insuranceGroup annuities
Total, including others
Hospitalization with other conditions
Individual life insurance
Individual annuities
Group life insuranceGroup annuities
Total, including others

Millions of yen
2019

2020

45,856,197[390,782]
1,903,363

47,025,362[488,900]
1,801,611

47,759,561

48,826,973[6,157,420][5,952,344]

[317]

[293]

[6,157,737][5,952,638][1,048,780][984,961][1,048,780][984,961]

1,820,012
1,812,211

1,753,629
2,580,564

3,632,223

4,334,193

̶

̶
̶

̶
̶
̶

̶
̶

̶

̶

̶
̶

̶
̶
̶

̶
̶
̶

[214,623][0][297,101][0][214,624][297,101]

̶

̶

̶
̶

82,4581
8,664
91,12488,062
0
7,364
95,427[17,965][17,719]

[34]

[37]

[17,999][17,756][17,965][17,719][17,965][17,719][6,818][6,716][6,818][6,716]

̶

̶

̶
̶
̶

̶
̶
̶

̶

̶

̶
̶
̶

̶
̶
̶

Notes: 1. Figures in [ ] show additional coverage and rider coverage attached to primary policies.
However, ordinary death protection including “term riders and others” is recorded under primary coverage.
2. Figures for “Maturity and living benefits” of living protection show the funds to be held at the time annuity payments are to commence
for individual annuities and group life insurance (annuity payment rider) for which annuity payments have not yet commenced.
3. Figures for annuities within living protection show annual annuity amounts.
4. Figures for “Others” within living protection show policy reserves for individual annuities (after commencement of annuity payments),
group life insurance (after commencement of annuity payments of annuities payment rider) and group annuities.
5. Figures for hospitalization protection show the daily benefits for hospitalization.
6. Figures for “Total, including others” in “Disease hospitalization” within hospitalization protection show the total of primary coverage
and rider coverage.

44

Sony Financial Holdings Inc. Financial Data Book 2020

■ Sony Life Performance Indicators (Non-consolidated)

2-05

Number of policies in force by insurance function

As of March 31,

2020

2019

Disability protection
839,097

910,654

Individual annuities̶̶Group life insurance

15,87916,709Individual life insurance̶̶

854,976

927,363

Group annuities
Total, including others
Surgery protection

1,710,024

1,727,406

Individual annuities̶̶Group life insurance̶̶

Individual life insurance̶̶

1,710,024

1,727,406

Group annuities
Total, including others

2-06

Policy amount in force by type of individual life insurance and individual annuities

Millions of yen

As of March 31,

2020

2019

Pure death-protection insurance
Whole life insurance

10,468,906

11,215,860

̶̶

Term life insurance

20,550,373

21,178,687

Total, including others

44,066,490

45,055,464

Whole life insurance with term rider

Mixed insurance
1,122,485

1,128,344

Endowment insurance with term rider̶̶Term life insurance with living benefits̶̶Total, including others

1,789,706

1,969,897

Pure endowment insurance

1,820,012

1,753,629

1,894,670

2,668,626

Rider to cover accidental death

2,846,778

2,732,267

Injury rider

Endowment insurance

Annuity products
Individual annuities
Riders for disaster and disease2,870,818

2,778,957

Comprehensive protection riders covering hospitalization

389

371

Comprehensive protection riders covering hospitalization for family

14

13

Comprehensive protection riders covering lifestyle-related disease

42

40

Medical treatment rider for adults

1,093

1,038

Medical treatment rider for women

1,145

1,090

13

12

Lifestyle diseases medical treatment rider
New medical treatment rider for womenCancer rider
Rider to cover initial period of hospitalization
Rider to cover hospitalization due to three diseases

3

3

273

283

6,667

6,391

104

212

Notes: 1. The amount of individual annuities is equal to the sum of (a) the funds to be held at the time annuity payments are to commence forpolicies for which annuity payments have not yet commenced and (b) the amount of policy reserves for policies for which payments
have commenced.
2. Figures for hospitalization protection show the daily benefits for hospitalization.

Sony Financial Holdings Inc. Financial Data Book 202045

■ Sony Life Performance Indicators (Non-consolidated)

2-07

Annualized premiums from insurance in force by type of individual life
insurance and Individual annuities

Millions of yen

For the years ended March 31,

2019

2020

176,106

194,493

Pure death-protection insurance
Whole life insurance̶̶Term life insurance

197,617

195,692

Total, including others

599,582

615,470

Whole life insurance with term rider

Mixed insurance
49,75849,591

Endowment insurance with term rider̶̶Term life insurance with living benefits̶̶Endowment insurance

Total, including others

75,93481,710Pure endowment insurance

134,322

129,22053,07969,986

Rider to cover accidental death

1,099

1,052

Injury rider

1,547

1,495

Comprehensive protection riders covering hospitalization

1,513

1,433

Comprehensive protection riders covering hospitalization for family

109

100

Comprehensive protection riders covering lifestyle-related disease

108

103

Medical treatment rider for adults

3,964

3,764

Medical treatment rider for women

3,492

3,318

65

62

Annuity products
Individual annuities
Riders for disaster and disease

Lifestyle diseases medical treatment rider
New medical treatment rider for women

25

24

Cancer rider

489

511

5,182

4,967

185

374

26,42826,392

Rider to cover initial period of hospitalization
Rider to cover hospitalization due to three diseases
Total, including others

Note: 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.)

2-08

Dividends to policyholders

1. Standard dividend yields for semi-participating individual life insurance and individual annuities
with policyholder dividends every five years%
For the years ended March 31,

Level-premium
Assumed interest rates of 1.00% or less
Assumed interest rates of more than 1.00%, and 2.00% or less
Assumed interest rates of more than 2.00%
Single premium and others
Assumed interest rates of 0.85% or less
Assumed interest rates of more than 0.85%, and 2.00% or less
Assumed interest rates of more than 2.00%

46

Sony Financial Holdings Inc. Financial Data Book 2020

2019

2020

0.65
1.50
1.35

0.65
1.50
1.35

0.30
1.15
1.00

0.30
1.15
1.00

■ Sony Life Performance Indicators (Non-consolidated)

2. The following is an example of policyholder dividends for Sony Life ʼs semi-participating whole life
nursing care insurance (before nursing care annuity payments commence) using figures for the
fiscal year ended March 31, 2020.
<Example> Semi-participating whole life nursing care insurance (before nursing care annuity payments commence)Entered at age 30, male, single premium, 10x death benefit, basic care annuity amount of ¥0.5 million%, Years, Yen(Sales discontinued in July 2016)
Policies to which nursing
care applies, ending at
Ongoing policy
Assumed interest rateYears elapsed
Contract datedeath of policyholder
Nov. 2, 2015
1.00%
5years34,432
34,432
̶
5,873
Nov. 2, 2014
1.00
6
̶11,793
Nov. 2, 2013
1.00
7
̶
0
Nov. 2, 2012
1.50
8
̶
0
Nov. 2, 2011
1.50
9Nov. 2, 2010
1.50
10
0
0
Notes: 1. The “Policies to which nursing care applies, ending at death of policyholder” column shows the amount receivable for nursing care orupon death.
The number of years elapsed is the number through November 2, 2020.
2. The amount of policyholdersʼ dividends above is the sum of the prorated dividend amount (policy reserve × dividend participation
ratio) and interest through November 2, 2020 (excluding dividends already paid).
Dividend participation ratio = Standard dividend yield – Assumed interest rate

3. Standard dividend yield on group annuities
The standard dividend yield on group annuities is 0.70%, using figures for the fiscal year ended March 31, 2020.
Note: Dividend participation is calculated as follows:
Dividend amount = Policy reserves × Dividend participation ratio
Dividend participation ratio = Standard dividend yield – Assumed interest rate

4. For group term life insurance and other products, a reserve for policyholdersʼ dividends is accumulated
in accordance with each productʼs characteristics.

3

Indicators for Insurance Policies

3-01

Increase ratio of policy amount in force

For the years ended March 31,

Individual life insurance
Individual annuities
Group life insuranceGroup annuities

3-02

%
2019
3.9
39.2
(0.9)
(13.7)

Average policy amount for new policies and policies in force(individual life insurance)

For the years ended March 31,

Average policy amount for new policies
Average policy amount for policies in force

2019
10,705
6,345

2020
2.3
40.8
(5.3)
(15.0)

Thousands of yen
2020
8,954
6,327

Note: The above figures do not include the increase from the conversion for average policy amount for new policies.

3-03

Ratio of new policy amount (to policy amount in force at the beginning of the
fiscal year)

For the years ended March 31,

Individual life insurance
Individual annuities
Group life insurance products

2019
12.1
45.0
1.4

2020
9.6
46.1
0.9

%

Note: The above figures do not include the increase from the conversion.

3-04

Lapse and surrender rate (to policy amount in force at the beginning of the
fiscal year)

The lapse and surrender rate is expressed as a ratio calculated by dividing the amounts of lapses and surrenders modified for
decreases, increases or reinstatements by the total policy amount in force at the beginning of the fiscal year.
%
2019
For the years ended March 31,
2020
Individual life insurance
6.37
4.86
Individual annuities
3.24
3.26
Subtotal
6.28
4.80
Group life insurance
4.39
4.27

Sony Financial Holdings Inc. Financial Data Book 202047

■ Sony Life Performance Indicators (Non-consolidated)

The following lapse and surrender rate is expressed as a ratio calculated by dividing the amounts of lapses and surrenders not
modified for decreases, increases or reinstatements by the total policy amount in force at the beginning of the fiscal year.
%
2019
For the years ended March 31,
2020
Individual life insurance + Individual annuities
6.06
4.46

3-05

Average premium for new policies of individual life insurance (monthly
payment contracts)

For the years ended March 31,

Average premiums for new policies

Yen

2019
12,743

2020
11,782

2019
1.85
1.62

2020
1.91
1.71

Note: The above figures do not include increase from conversion.

3-06

Mortality rate (individual life insurance: primary coverage)

For the years ended March 31,

Based on number of policies
Based on policy amount

3-07

‰

Incidence rates of riders (individual life insurance)

‰

2020

2019
For the years ended March 31,

Accidental death protection
Disability protection
Accidental hospitalization protection
Disease hospitalization protection
Lifestyle-related disease hospitalization protection
Disease and accidental surgery protection
Lifestyle-related disease surgery protection

3-08

Number ofpolicies
0.116
0.107
3.868
39.29917.95051.34514.430

Policy amount
0.112
0.039
94.632650.664445.180

Number ofpolicies
0.087
0.106
4.048
40.97319.62455.68516.085

Policy amount
0.110
0.124
99.089653.695
449.901

Operating expense ratio (to insurance premiums)

For the years ended March 31,

Operating expense ratio

%
2019
13.0

2020
11.8

4 Indicators Related to Asset Management (General Account)
4-01

Overview of asset management (general account)

Status of asset management for the fiscal year ended March 31, 2020
(1) Investment Environment
The Japanese economy slowed down during the fiscal year ended March 31, 2020. Although the first half of the fiscal year saw
a moderate economic growth, the growth decelerated during the October-December quarter due to the impact of natural
disasters and the consumption tax hike. The global spread of novel coronavirus infections (COVID-19) in the January-March
quarter led to the further weakening of the domestic economy. Meanwhile, prices rose for 39 consecutive months with Marchcore CPI rising 0.4% year on year. The October-December real GDP* shrank 1.8% (annual rate: negative 7.1%) as downward
pressures were applied by a 2.8% year-on-year drop in private consumption and a 4.6% year-on-year decline in capital expenditure.
Yields on the bond market rose with fluctuations. 10-year Japanese government bond (JGB) yields declined in the firsthalf of the fiscal year as concerns grew over economic recessions caused by the U.S.-China trade friction. The subsequent
progress in the U.S.-China trade talks ignited expectations for a global economic turnaround, leading to the higher yields. In
February, though, JGB yields dipped as demands for JGBs, which were deemed safe assets, grew amid the spread of
COVID-19. The yields, however, again trended upward as investors cashed out their JGB holdings to meet the increasingneeds for cash on hand. The 10-year JGB yield as of March 31, 2020, was 0.031% (up 0.113 percentage points from a year
earlier).
In the stock markets, stock prices dropped during the fiscal year. In the first half of the fiscal year, the markets remained
soft against the backdrop of the U.S.-China trade friction. With the progress in the U.S.-China trade negotiations, stock prices
rallied from September and the Nikkei Stock Average reached ¥24,000 in December when an agreement was reached on a
Phase One trade deal. A global increase in cases with COVID-19, however, triggered steep falls in share prices in February2020 and the Nikkei subsequently plummeted below ¥17,000. In response, national governments worldwide announced
significant monetary easing and large-scale fiscal policies, which led to the recovery of the share prices to the ¥19,000 mark.
The Nikkei Stock Average closed at ¥18,917.01 on March 31, 2020 (down ¥2,288.8 from a year earlier).
The foreign exchange market showed a yen appreciation against the dollar accompanying significant fluctuations. In the firsthalf of the fiscal year, the yen gained ground versus the U.S. dollar against the backdrop of the shrinking interest rate differentials between the two countries and the U.S.-China trade friction. From September, the yen lost ground to the U.S. dollar fallingto ¥112 at one stage, in response to the progress in the U.S.-China trade talks, strong economic indicators in the U.S., and thegrowing risk appetites among investors. The yen then appreciated to ¥101 in March due to the emergency rate cuts and othermonetary easing measures implemented by the Federal Reserve Board (FRB) in response to the falling crude oil prices andspread of COVID-19. Thereafter, the rising demand for the U.S. dollar, the key currency, put the brakes on the appreciation of
the yen. As of March 31, 2020, USD/JPY stood at ¥108.83 (down ¥2.16 from a year earlier).

48*Second preliminary estimatesSony Financial Holdings Inc. Financial Data Book 2020

■ Sony Life Performance Indicators (Non-consolidated)(2) Investment Policy
Sony Lifeʼs investment policy is to understand the characteristics of insurance liabilities, and prioritize investment in the assetsthat meet such characteristics based on ALM (asset liability management, the comprehensive management of assets andliabilities). Specifically, Sony Life is investing primarily in ultralong-term Japanese bonds with longer remaining maturity, to meetthe long-term liabilities of life insurance policies, in an effort to maintain adequate control over the risks associated with interest
rate fluctuations involved in such insurance liabilities. Meanwhile, it is Sony Lifeʼs policy to limit its investment in risky assets
including stocks.

(3) Results of Investment
As of March 31, 2020, general account assets totaled ¥9,914.9 billion, up 9.2%, or ¥835.4 billion, from a year earlier. Within
general account assets, Japanese bonds totaled ¥8,364.5 billion [accounting for 84.4% of total general account assets],
foreign bonds ¥966.9 billion [9.8%], Japanese stocks ¥28.0 billion [0.3%], policy loans ¥208.0 billion [2.1%], real estate ¥92.5
billion [0.9%] and cash and due from banks ¥79.8 billion [0.8%].

Portfolio of general account assets
Components of general account assets

Millions of yen, %

2020

2019
As of March 31,

Cash and due from banks, 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
Bonds
Stocks, etc.
Other securities
Loans
Policy loans
Commercial loans
Real estate
Deferred tax assets
Other assets
Reserve for possible loan losses
Total
Foreign currency-denominated assets

Amount61,997

Composition
0.7%

Amount
79,846Composition
0.8%

269,387
8,339,691
7,745,342
28,611
564,666
542,126
22,5391,071
198,410
198,369
41
90,804
14,248105,530(623)
9,079,446
562,095

3.0
91.9
85.3
0.3
6.2
6.0
0.2
0.0
2.2
2.2
0.0
1.0
0.2
1.2
(0.0)
100.0
6.2

40
9,388,609
8,364,513
28,064
995,567
966,964
28,603464
208,632
208,069562
92,55919,308
126,573(652)
9,914,916
985,116

0.0
94.7
84.4
0.3
10.0
9.8
0.3
0.0
2.1
2.1
0.0
0.9
0.2
1.3
(0.0)
100.0
9.9

̶
̶
̶
̶

̶
̶
̶
̶

̶
̶
̶
̶

̶
̶
̶
̶

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

Changes in general account assets by categories
For the years ended March 31,

Cash and due from banks, 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
Bonds
Stocks, etc.
Other securities
Loans
Policy loans
Commercial loans
Real estate
Deferred tax assets
Other assets
Reserve for possible loan losses
Total
Foreign currency-denominated assets

Millions of yen
201921,1352020
17,848(1,194)
621,785
464,197(9,852)
167,755
175,555(7,799)
(314)
8,924
8,908
15
(1,542)
3,461(11,665)(328)
640,574
152,232(269,346)
1,048,917
619,170(547)
430,901
424,837
6,063(606)
10,221
9,700
520
1,755
5,059
21,043(29)
835,469
423,021

̶
̶
̶
̶

̶
̶
̶
̶

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

Sony Financial Holdings Inc. Financial Data Book 2020

49

■ Sony Life Performance Indicators (Non-consolidated)

4-02

Investment yield by type of asset (general account)%

For the years ended March 31,

2019

Cash and due from banks, 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
Loans
Commercial loans
Real estate
Total

0.00

2020
0.00

̶

̶

̶

̶

̶

̶

̶

̶

1.93
2.11
1.76
32.26
6.39
3.55
0.53
5.81
1.94

1.90
1.79
1.71
19.34
2.12
3.47
1.47
6.95
1.85

Notes: 1. The denominator for the investment yield calculation is a daily averaged carrying amount, while the numerator is investment income
minus investment expenses under ordinary profit (loss).
2. Valuation gains for Article 112 of the Insurance Business Act of Japan are not accounted for.

4-03

Average balance by type of asset (general account)

For the years ended March 31,

Cash and due from banks, 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
Loans
Commercial loans
Real estate
Total
Overseas investment

4-04

50

Millions of yen
62,2892020
69,789

̶

̶

̶

̶

̶

̶

2019

̶

̶

232,4617,899,966
7,403,902
20,103475,190
192,19828
84,6748,570,661
482,174

210,9298,616,094
7,817,077
19,854
778,614202,887
221
83,172
9,287,747
794,160

Investment income (general account)

Millions of yen

For the years ended March 31,

2019Interest income and dividends
Gains on securities under proprietary accounts
Income from money held in trust, net
Income from trading securities, net
Gains on sale of securities
Gains on redemption of securities
Gains on derivatives, net
Foreign exchange gains, net
Reversal of reserve for possible loan losses
Other investment income
Total

166,937

Sony Financial Holdings Inc. Financial Data Book 2020

2020
181,811

̶

̶

4,490
6,107

4,013
156
3,637

̶

̶

̶

4,098

13,455

̶

̶

̶

̶

1
193,718

̶

190,990

■ Sony Life Performance Indicators (Non-consolidated)

4-05

Investment expenses (general account)

Millions of yen

For the years ended March 31,

Interest expense
Losses on securities under proprietary accounts
Losses on money held in trust, net
Losses on trading securities, net
Losses on sale of securities
Losses on valuation of securities
Losses on redemption of securities
Losses on derivatives, net
Foreign exchange losses, net
Provision for reserve for possible loan losses
Write-off of loans
Depreciation of real estate for rent and others
Other investment expenses
Total

4-06

2019
1,604

2020
5,059

̶

̶

̶

̶

126
34
4,026

̶

50
6,316

̶

̶

13,925

̶

̶

6,345
43

329
̶

̶

1,599
2,992
24,638

1,637
2,683
22,136

Interest income and dividends (general account)

For the years ended March 31,

2019Interest income from deposits
Interest income and dividends on securities
Interest income from Japanese bonds
Dividends from Japanese stocks
Interest income and dividends on foreign securities
Interest income from loans
Income from real estate for rent
Total, including others

0150,733
129,930556
19,906
6,828
8,831
166,937

Millions of yen
2020
0
164,700
133,450319
30,6607,049
9,710
181,8112019

Millions of yen
2020

4-07

Gains on sale of securities (general account)

For the years ended March 31,

Japanese bonds including JGBs
Japanese stocks, etc.
Foreign securities
Others
Total

4-08

̶

̶

6,107

3,440
̶

̶

197
3,637

6,107

Losses on sale of securities (general account)
Millions of yen
2020

2019

For the years ended March 31,

Japanese bonds including JGBs
Japanese stocks, etc.
Foreign securities
Others
Total

4-09

̶

̶

̶

34
0

50
̶

̶

̶

34

50

Losses on valuation of securities (general account)

For the years ended March 31,

Japanese bonds including JGBs
Japanese stocks, etc.
Foreign securities
Others
Total

Millions of yen
2020

2019
̶

̶

̶

̶

4,026

6,316

̶

̶

4,026

6,316

Sony Financial Holdings Inc. Financial Data Book 202051

■ Sony Life Performance Indicators (Non-consolidated)

4-10

Securities (general account)

Millions of yen, %As of March 31,

Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Public corporation bonds
Japanese stocks
Foreign securities
Bonds
Stocks, etc.
Other securities
Total

4-11

2020
AmountComposition
7,757,263
82.6%
445
0.0
606,804
6.5
471,862
5.0
28,064
0.3
995,567
10.6
966,964
10.3
28,6030.3
464
0.0
9,388,609
100.0

2019
AmountComposition
7,212,288
86.5%
448
0.0
532,604
6.4
460,976
5.5
28,611
0.3
564,666
6.8
542,126
6.5
22,539
0.3
1,071
0.0
8,339,691
100.0

Balance of securities by remaining period (general account)

As of March 31,

Securities
Japanese government
bonds
Japanese local
government bonds
Japanese corporate
bonds
Japanese stocks
Foreign securities
Bonds
Stocks, etc.
Other securities
Monetary claims purchased
Certificates of deposit
Others
Total

Millions of yen

More than
1 year to
3 years
8,828

More than
3 years to
5 years
58,6592019
More than
5 years to
7 years272,892

̶

5,372

56,110270,303

388,956

6,491,545

7,212,288

̶

̶

̶

̶

̶

448

448

̶
̶

̶
̶

2,327

2,588

3,220

524,468
28,611556,945
542,126
14,818307532,604
28,611
564,666
542,126
22,5391,071

7,602,326

8,339,691

Within 1 year
4,806

̶

̶
̶
̶
̶
̶
̶
̶
̶

4,708

2,790

222

4,708
98

2,790
665

222

4,806

8,828

58,659272,892

More than
3 years to
5 years
257,181

2020
More than
5 years to
7 years
315,545

̶
̶
̶
̶

̶

̶

̶
̶
̶
̶

̶
̶
̶

More than
7 years to
10 years
392,177

Over 10 years(including nofixed maturity)
7,602,326

Total
8,339,691

̶
̶
̶
̶
̶
̶
̶
̶

392,177

̶
̶
̶

̶
̶
̶

Millions of yen

As of March 31,

Securities
Japanese government
bonds
Japanese local
government bonds
Japanese corporate
bonds
Japanese stocks
Foreign securities
Bonds
Stocks, etc.
Other securities
Monetary claims purchased
Certificates of deposit
Others
Total

More than
1 year to
Within 1 year 3 years
11,52021,516More than Over 10 years
7 years to (including no
10 years fixed maturity)
Total
487,383 8,295,461 9,388,609

7,139

18,725249,828

313,323

482,539

6,685,706

7,757,263

̶

̶

̶

̶

̶

445

445

̶
̶

̶
̶

4,882

1,043

2,176

4,315
65

2,391
1,128
1,262
398

2,470
2,284
186

1,178
1,178

2,667
2,667

598,701
28,064
982,544959,706
22,838606,804
28,064
995,567
966,964
28,603464

11,52021,516257,181

4,315
̶
̶
̶
̶

̶
̶
̶

̶

̶
̶
̶
̶

̶

̶
̶
̶
̶
̶

315,545

̶

̶
̶
̶
̶
̶

487,383̶̶̶̶

8,295,461

̶̶̶

9,388,609

Note: Items treated as securities based on “financial product accounting standards” (Corporate Accounting Standards, No. 10) are included.

4-12

Fiscal year-end yields on bonds (general account)

As of March 31,

Japanese bonds
Foreign bonds
Note: Figures in this table are calculated excluding discount bonds.

52

Sony Financial Holdings Inc. Financial Data Book 2020

%
2019
1.76
2.55

2020
1.71
2.54

■ Sony Life Performance Indicators (Non-consolidated)

4-13

Japanese stock holdings by industry (general account)

Millions of yen, %

2020

2019
As of March 31,

Fisheries, agriculture and forestry
MiningConstruction
Manufacturing industries
Food products
Textiles and clothing
Pulp and paper
Chemicals
Medical products
Oil and coal products
Rubber products
Glass and stone products
Steel
Non-steel metals
Metal products
Machinery
Electric appliances
Transportation vehicles
Precision machinery
OthersElectric and gas utilities
Transportation / information telecommunications
Ground transportation
Water transportation
Air transportation
Warehouses / transportation
Information / telecommunications
Commerce
Wholesalers
Retailers
Financial services / insuranceBanking
Securities and commodity futures trading
Insurance
Other financial services
Real estate
Service companies
Total

Amount̶̶Composition
̶%

AmountComposition
̶%

̶

̶
̶

1,806

6.3

354

1.3

93

0.3

̶
̶

̶
̶

̶
̶
̶

̶
̶
̶

808
887

2.8
3.1

826
706

2.9
2.5

143

0.5

277
940
4,969
2,434
730
810

1.0
3.3
17.4
8.5
2.6
2.8

705
1,576
924
692
538

2.5
5.6
3.3
2.5
1.9

1,187

4.2

800

2.9

257

0.9

̶
̶
̶
̶

106
2,877

0.4
10.1

̶

̶

927

3.3

̶
̶

̶
̶

̶
̶

̶
̶

8,096
926

28.3
3.2

18,426
379

65.7
1.4

1,256
28,611

4.4
100.0

1,206
28,064

4.3
100.0

̶
̶
̶
̶

̶

̶
̶
̶

̶

̶
̶
̶
̶

̶

̶
̶
̶

̶

̶
̶
̶
̶
̶
̶

̶

̶

̶

̶
̶
̶
̶
̶
̶

̶

̶
̶
̶
̶

̶

Note: Categories of stock holdings by industry are based on the classification by the Securities Identification Code Committee of Japan.

4-14Loans (general account)

As of March 31,

Policy loans
Policyholder loans
Automatic premium loans
Commercial loans[Loans to borrowers outside Japan]
Corporate loans[Corporate loans - domestic]
Loans to national, international and government-affiliated organizations
Loans to public entities
Mortgage loans
Consumer loans
Other loans
Total

Millions of yen
2019
198,369
180,988
17,38041[̶]2020
208,069
190,521
17,548
562
[̶]

[̶]

[̶]

41
198,410562
208,632

̶
̶
̶
̶
̶

̶
̶
̶
̶
̶

Sony Financial Holdings Inc. Financial Data Book 202053

■ Sony Life Performance Indicators (Non-consolidated)

4-15

Tangible fixed assets (general account)

Details of tangible fixed assets

Millions of yen, %2019

For the year ended March 31,

Land
Buildings
Leased assets
Construction in progress
Other tangible assets
Total
Investment and rental
properties

Balance atthe beginning Increase inof the period the period̶62,25930,087
494
5

21

816

130

93,169646

86,06975

̶

Amount of
Decrease in depreciation
the period in the period

̶

̶

̶

69
[34]
1

1,967

Balance atthe end of
the period
62,25928,544

̶

̶

4

20
̶

̶

0

2.4

4
[2]
76
[37]

189

752

1,791

70.4

2,161

91,57729,251

49.9

1,599

83,627

25,68052.2

917

Amount ofRatio ofaccumulated accumulated
depreciation depreciation
̶̶%27,45949.0
̶Millions of yen, %For the year ended March 31,

Land
Buildings
Leased assets
Construction in progress
Other tangible assets
Total
Investment and rental
properties

2020
Balance at
Amount of
the beginning Increase in Decrease in depreciationof the period the period the period in the period̶̶
62,2592,456
28,544
1,406
112
1,995
[18]
̶
20
443
54
̶

̶

752

92

91,577

4,397

83,6271,362

̶Balance atthe end of
the period
64,71527,843
408

55

11.9

189

651

1,909

74.6

2,239

93,61931,234

51.9

1,637

83,33827,135

54.6

̶

4
[2]
116
[21]
13

Ratio ofAmount ofaccumulated accumulated
depreciation depreciation
̶̶%
29,269
51.2

̶

̶

̶

Note: Figures in [ ] in the “Decrease in the period” describe the amount of impairment losses.

Balance of real estate and number of buildings for rent

Millions of yen
2019
90,804
7,232
83,571
2

As of March 31,

Real estate balance
For corporate use
For rent
Number of buildings for rent

4-16

2020
92,5599,648
82,9103

Overseas investment (general account)

Details by assets
As of March 31,

Foreign currency-denominated assets (yen amount not fixed)
Foreign bonds
Foreign stocks
Cash, deposits and others
Subtotal
Foreign currency-denominated assets (yen amount fixed)
Foreign bonds
Cash, deposits and others
Subtotal
Yen-denominated assets
Loans to borrowers outside Japan
Foreign bonds and others
Subtotal
Total
Overseas investment

Millions of yen, %2019
AmountComposition
542,126
8,395
11,573562,095
̶
̶
̶

95.1%
1.5
2.0
98.6
̶
̶
̶

2020
AmountComposition
966,964
3,267
14,884985,116
̶
̶
̶
̶

96.1%
0.3
1.5
97.9
̶
̶
̶

̶

̶

8,199
8,199

1.4
1.4

20,88520,8852.1
2.1

̶

570,294

100.0

1,006,001

100.0

Note: “Foreign currency-denominated assets (yen amount fixed)” are recorded under assets on the balance sheets at the fixed yen value thatwas determined at settlement with foreign exchange forward contracts.

54

Sony Financial Holdings Inc. Financial Data Book 2020

■ Sony Life Performance Indicators (Non-consolidated)

Overseas investment by region

Millions of yen, %2019

Foreign securities
As of March 31,

North America
EuropeOceania
Asia
Latin America
Middle East
AfricaInternational organizations
Total

Amount544,778
2,712
6,529
339
10,306̶̶̶

564,666

Foreign bonds

Composition Amount
96.5%
542,126
̶
0.5
̶
1.2
̶
0.1
̶
1.8

Composition
100.0%

̶
̶
̶

̶
̶
̶

̶
̶
̶
̶
̶
̶
̶

100.0

542,126

100.0

Loans to borrowers
outside Japan

Foreign stocks, etc.
Amount
2,652
2,712
6,529
339
10,306Composition
11.8%
12.0
29.0
1.5
45.7

22,539

100.0

̶
̶
̶

Amount
̶
̶
̶
̶
̶
̶
̶
̶
̶

̶
̶
̶

Composition
̶%
̶
̶
̶
̶
̶
̶
̶
̶

Millions of yen, %2020
Foreign securities
As of March 31,

North America
EuropeOceania
Asia
Latin America
Middle East
AfricaInternational organizations
Total

Foreign bonds

Foreign stocks, etc.

Loans to borrowers
outside Japan

Amount Composition Amount Composition Amount Composition Amount Composition̶̶%
969,100
97.3% 966,964
100.0%
2,136
7.5%
̶
̶
̶
̶
2,032
0.2
2,032
7.1
̶
̶
̶
̶
1,472
0.1
1,472
5.1
̶
̶
̶
̶
496
0.0
496
1.7
̶
̶
̶
̶
22,465
2.3
22,465
78.5
̶
̶
̶

̶
̶
̶

̶
̶
̶

̶
̶
̶

̶
̶
̶

̶
̶
̶

995,567

100.0

966,964

100.0

28,603

100.0

̶
̶
̶
̶

Foreign currency-denominated assets by currency

Millions of yen, %

2020

2019
As of March 31,

U.S. dollar
Euro
Australian dollar
British pound
Singapore dollar
Total

4-17

̶
̶
̶
̶

Amount553,290
1,853
6,529
81
341
562,095

Composition
98.4%
0.3
1.2
0.0
0.1
100.0

Amount980,637
2,432
1,472
77
497
985,116

Composition
99.5%
0.2
0.1
0.0
0.1
100.0

Yield on overseas investments (general account)

%
2019
6.30

For the years ended March 31,

Yield on overseas investments

2020
2.09

Note: Overseas investments is the total of foreign currency-denominated assets and yen-denominated assets.

Sony Financial Holdings Inc. Financial Data Book 202055

■ Sony Life Performance Indicators (Non-consolidated)

5

Status of Insurance Claims Paying Ability

5-01

Solvency margin ratio

As of March 31,(A) Total solvency margin
Common stock, etc.
Reserve for price fluctuations
Contingency reserve
General reserve for possible loan losses
Net unrealized gains (losses) on available-for-sale securities (before tax deductions) and net
deferred gains (losses) on hedging instruments (before tax deductions) × 90% (100% if losses)
Net unrealized gains on real estate × 85% (100% if losses)
Amount excluded from deferred tax assets
Unallocated portion of reserve for policyholdersʼ dividends
Deferred tax assets
Excess amount of policy reserves based on Zillmer method
Subordinated debt
The portion of the excess amount of policy reserves based on Zillmer method andsubordinated debt that is not included in the margin
Deductible items(B) Total risk
(R1＋R8)2＋(R2＋R3＋R7)2＋R4
Insurance risk
R1
Third-sector insurance risk
R8
Assumed interest rate risk
R2
Minimum guarantee risk
R7
Asset management risk
R3
Business management risk
R4
Solvency margin ratio[(A)/｛(1/2)×(B)｝]×100

2019
1,313,033
361,442
50,10598,6132

Millions of yen
2020
1,412,772
390,186
52,768
107,659
0

153,782
50,980154,773
65,514245
92,924
544,688

152
101,924
554,097(34,281)(5,471)(3,331)(10,971)

101,371
24,574
8,526
34,062
22,14136,935
2,524

114,101
24,4988,459
36,46823,81046,0452,785

2,590.5%

2,476.3%

̶

̶

̶

̶

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 the Ministry of Finance Public Notice No. 50 (1996).
2. Minimum guarantee risk is calculated based on the standardized approach.

Reference: Real net assets
As of March 31,(1) Total amount to be recorded as assets (=① + ② + ③ + ④ – ⑤ – ⑥)
①Total assets on the balance sheets②Difference between fair value and balance sheet amount of securities③Unrealized gain (losses) on tangible fixed assets④Unrealized gain (losses) other than tangible fixed assets⑤Deferred tax assets for net unrealized gains (losses) on available-for-sale securities⑥Deferred tax assets for net deferred gains (losses) on hedging instruments(2) An amount calculated based on total amount to be recorded as liabilities(＝① – ② – ③ – ④ – ⑤ – ⑥)
①Total liabilities on the balance sheets②Reserve for price fluctuations③Contingency reserve④Part of reserves for future insurance claim payment
Excess of amount equivalent to surrender values (④ (a))
Unallocated amount in reserve for policyholdersʼ dividends (④ (b))⑤Deferred tax liabilities for net unrealized gains (losses) on available-for-sale securities⑥Deferred tax liabilities for net deferred gains (losses) on hedging instruments
Real net assets (A) (1)–(2) (including unrealized gains (losses) on held-to-maturity securities andpolicy-reserve-matching bonds)(3) Unrealized gains (losses) on held-to-maturity securities and policy-reserve-matching bonds
Real net assets (B) (1)–(2)–(3) (excluding unrealized gains (losses) on held-to-maturity securities
and policy-reserve-matching bonds)

201912,556.8
10,380.1
2,114.3
62.3

Billions of yen
2020
13,877.8
11,237.1
2,561.2
79.4

9,124.4
9,866.2
50.1
98.6
544.9
544.6
0.2
48.1

9,934.7
10,697.5
52.7
107.6
554.2
554.0
0.1
48.1

3,432.3
2,114.3

3,943.0
2,561.2

1,318.0

1,381.8

̶
̶
̶

̶

̶
̶
̶

̶

Note: According to the “Comprehensive Guideline for Insurance Companies” defined by the regulatory authority, when the amount (actual
difference between assets and liabilities (B)) obtained by deducting unrealized gains (losses) on held-to-maturity securities and on
policy-reserve-matching bonds which are not accounted for in the balance sheets as mark-to-market from the actual difference
between assets and liabilities (A) is positive, and liquid assets are held, the regulatory authority will not, in principle, take early corrective
actions even if the actual difference between assets and liabilities (A) becomes negative.

56

Sony Financial Holdings Inc. Financial Data Book 2020

■ Sony Life Performance Indicators (Non-consolidated)

6

Balance of Separate Account Assets

As of March 31,

Individual variable life insurance and individual variable annuities
Group annuities
Total separate account2019
1,300,701

Millions of yen
2020
1,323,948

1,300,701

1,323,948

̶̶

Note: Assets relating to individual variable life insurance and individual variable annuities are jointly invested at Sony Life.

7 Investment Progress of Separate Account Assets in Individual

Variable Life Insurance and Individual Variable Annuities

7-01

Results of investment

%

2020

As of March 31,

Results of investment

Japanese
GlobalGlobalGlobal core
growthHybridEquity-based equity-based equity-based equity-based Bond-based bond-based
investment investment investment investment investment investment investment(8.09)(5.69)(12.26)(2.92)
0.00
4.32(3.86)

Short-termmonetary
marketbased
investment(0.02)

7-02 Investment progress (for the fiscal year ended March 31, 2020)
Equity-based investment
Benchmark: The Nikkei Stock Average■Investment progress in the period
Japanese stock markets fell during the fiscal year. In the period from the beginning to the midpoint of the fiscal year, the Nikkei
Stock Average remained weak due to the deterioration of investor sentiment against the backdrop of U.S. tariff hikes on imports
from China; however, share prices began to trend upward due to progress in U.S.-China trade talks from September, leading theindex to briefly rise to the ¥24,000 level. Thereafter, the global spread of COVID-19 beginning in February 2020 led to a sharp
decrease in the index to the ¥16,000 level in March. However, monetary easing and fiscal policies by national governments
resulted in a rebound of the index to around ¥19,000 at the end of fiscal year, as investors expected these to prop up economies.
The investment results of the fund were negative 8.09% year on year, while the benchmark return stood at negative 10.79%.
■Investment policy for the futureSony Lifeʼs investment activities will remain primarily focused on the Exchange Traded Fund (ETF Nikkei 225), to ensure linkage tothe stock market. Furthermore, Sony Life will aim to achieve medium- to long-term investment results in excess of the Nikkei
Stock Average through investments in domestic stocks.

Japanese growth equity-based investment
Benchmark: TOPIX (inclusive of dividends)■Investment progress in the periodSony Life invested in the additional-type equity investment trust “Fidelity Japan Growth Stock Fund VA3 (exclusively for qualified
institutional investors)” (provided by FIL Investments (Japan) Limited). Investment results of the fund were negative 5.69% year on
year, while the benchmark return stood at negative 9.50%.
■Investment policy for the futureSony Life will continue investing in the additional-type equity investment trust “Fidelity Japan Growth Stock Fund VA3 (exclusively
for qualified institutional investors).” This investment trust invests mainly in stocks listed on the Japanese stock exchanges (orstocks equivalent thereto), with the basic strategies involving active investment aiming to achieve long-term growth of the investment trust asset.

Global core equity-based investment
Benchmark: MSCI World Index (inclusive of dividends, in yen terms)■Investment progress in the periodSony Life invested in the additional-type equity investment trust “World Equity Fund VL (exclusively for qualified institutional
investors)” (provided by State Street Global Advisors (Japan) Co., Ltd.). Investment results of the fund were negative 12.26% year
on year, while the benchmark return was negative 10.57%.
■Investment policy for the futureSony Life will continue investing in the additional-type equity investment trust “World Equity Fund VL (exclusively for qualified
institutional investors).” This investment trust invests mainly in stocks both in Japan and abroad aiming to achieve investment
results in excess of the benchmark MSCI World Index (inclusive of dividends, in yen terms).

Sony Financial Holdings Inc. Financial Data Book 202057

■ Sony Life Performance Indicators (Non-consolidated)

Global equity-based investment
Benchmark: MSCI World Index (inclusive of dividends, in yen terms)
Investment advisor: Morgan Stanley Investment Management (Japan) Co., Ltd.
■Investment progress in the period
The worldʼs major stock markets fell during the fiscal year. Up through the middle of the fiscal year, stocks continued to trend witha sluggish upside; however, progress in U.S.-China trade talks as well as a series of FRB interest rate cuts and strong economic
statistics helped boost U.S. stock prices, which marked record highs in February 2020. However, this was followed by steep falls
in share prices with the global spread of COVID-19. Towards the end of the fiscal year, share prices returned to a tight range amid
high expectations that monetary easing and fiscal policies enacted by national governments would prop up economies. Investment results of the fund were negative 2.92% year on year, while the benchmark return was negative 10.57%.
■Investment policy for the futureSony Life will continue investing in globally diversified stocks, based on its further analysis of fundamentals, focusing on stocks
with significant intangible assets (brand value), thereby aiming to achieve investment results in excess of the MSCI World Index(inclusive of dividends, in yen terms) over the medium to long term.

Bond-based investment■Investment progress in the period
The Japanese bond market experienced significant fluctuations in interest rates. In the first half of the fiscal year, long-term interest
rates temporarily fell to the negative 0.28% range due to concerns over the economic outlook due to the intensifying U.S.-China
trade friction. Then, with progress in U.S.-China trade talks, the risk averse sentiment receded and long-term interest rates began
to rise. At the beginning of the calendar year, the spread of COVID-19 caused a decline in long-term interest rates; however,growing demand for funding accelerated bond sales, with interest rates temporarily rising to over positive 0.08% at the end of the
fiscal year. Investment results of the fund were positive 0.00% year on year.

■Investment policy for the futureSony Life will continue to build a portfolio consisting mainly of Japanese yen-denominated bonds, with the aim of ensuring stablemedium- to long-term yields. It will work to achieve stable investment results based on gains on sales, as well as ensuring stableinterest income from the bond portfolio.

Global bond-based investment
Benchmark: The FTSE World Government Bond Index (unhedged, in yen terms)■Investment progress in the period
Interest rates fell in major world bond markets. In the first half of the fiscal year, U.S. interest rates were on a declining trend due toconcerns over the economic outlook due to the intensifying U.S.-China trade friction. The FRBʼs preventive interest rate cuts
created an ongoing state of poor outlook for rising interest rates from October onward. The global spread of COVID-19 caused afurther, sharp decline in interest rates in February and thereafter. From March onward, though there were instances of temporary
increases in interest rates due to bond sales as a result of increased demand for funding, the FRBʼs new unlimited bond-buying
plan and other monetary easing policies held interest rates at low levels. The investment results of the fund were positive 4.32%
year on year, while the benchmark return stood at positive 4.32%■Investment policy for the futureSony Life will continue investing in countries, that it believes, based on its interest rate analysis, offer higher real interest rates, aswell as wider differentials between long-term and short-term interest rates, in addition to a favorable economic environment,
aiming to achieve medium- to long-term investment results in excess of the FTSE World Government Bond Index (unhedged, in
yen terms).

Hybrid investment■Investment progress in the period
Hybrid investments were made in a diversified manner, primarily comprised of Japanese bonds, Japanese stocks and Exchange
Traded Funds (ETF Nikkei 225). These funds registered investment results of negative 3.86% year on year, due to an increase indomestic bond market interest rates (and an associated decline in bond prices) and decline in the domestic stock market.

■Investment policy for the futureSony Life will continue to actively allocate assets into the classes deemed, based on its analysis of economic/financial circumstances, to offer higher expected returns compared to investment risks over the medium to long term, while earning constantinterest income from the Japanese yen-denominated bond portfolio.

Short-term monetary market-based investment
Benchmark: Short-term interest rate (unsecured overnight call rate, etc.)■Investment progress in the period
Investment was focused on bonds with shorter remaining maturities as well as short-term financial instruments, and achieved
investment results of negative 0.02% year on year, approximately tracking short-term interest.

■Investment policy for the futureSony Life will invest primarily in short-term bonds and short-term financial instruments, to secure yields on investments approximately tracking short-term interest.

58

Sony Financial Holdings Inc. Financial Data Book 2020

■ Sony Life Performance Indicators (Non-consolidated)

8 Status of Individual Variable Life Insurance and Individual

Variable Annuities

8-01 Policy amount in force
Individual variable life insurance

Millions of yen

2020

2019
As of March 31,

NumberAmountNumberAmountVariable life insurance (whole life type)

836,700

7,980,475

830,917

7,601,102

Variable life insurance (limited term type)

152,548922,336

185,790

1,183,138

Variable life insurance (term type)
Total

12,713

685,553

15,422859,808

1,001,961

9,588,365

1,032,129

9,644,050

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

Individual variable annuities

Millions of yen

2020

2019
As of March 31,

NumberAmountNumberAmountIndividual variable annuities

244,234

1,483,080

361,2122,256,666

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.

8-02

Portfolio of separate account assets in individual variable life insurance andindividual variable annuities

Millions of yen, %

2020

2019
As of March 31,

AmountCash and due from banks, call loans

113,749

Composition
8.7%

Amount
77,863Composition
5.9%

1,184,185

91.0

1,241,363

93.8

Japanese bonds

147,570

11.3

168,197

12.7

Japanese stocks

20,7701.6

22,063

1.7

Foreign securities

697,94553.7

770,37658.2

86,546

6.7

97,351

7.4

Securities

Bonds
Stocks, etc.

611,39847.0

673,024

50.8

Other securities

317,900

24.4

280,727

21.2

Loans

̶

̶

̶

̶

Others

2,766

0.2

4,721

0.4

̶

̶

̶

̶

1,300,701

100.0

1,323,948

100.0

Reserve for possible loan losses
Total

Note: Assets relating to individual variable life insurance and individual variable annuities are jointly invested at Sony Life.

Sony Financial Holdings Inc. Financial Data Book 202059

■ Sony Life Performance Indicators (Non-consolidated)

8-03

Net investment gains (losses) of separate account assets in individual
variable life insurance and individual variable annuities

Millions of yen

For the years ended March 31,

2019

2020

Interest income and dividends

18,913

23,102

Gains on sale of securities

49,662

47,63050

6Valuation gains on securities

298,688

231,734

Foreign exchange gains, net

̶̶

Gains on redemption of securities

Gains on derivatives, net

̶̶

Other investment income

4,453

2,776

Losses on sale of securities

10,171

4,922

76

79

Losses on valuation of securities

268,458

339,913

Foreign exchange losses, net

1,983

5,499

̶

̶

Losses on redemption of securities

Losses on derivatives, net
Other investment expenses

3,134

826

Net investment gains (losses)

87,944(45,990)

Note: Assets relating to individual variable life insurance and individual variable annuities are jointly invested at Sony Life.

8-04

Fair values of securities relating to separate account assets in individual
variable life insurance and individual variable annuities

Valuation gains (losses) on trading securities

Millions of yen

2020

2019

As of March 31,

Trading securities

Balance sheet
amount1,184,185

Net valuation
gains (losses)
recordedin income
30,230Net valuation
gains (losses)
recorded
Balance sheet
in incomeamount1,241,363(108,179)

Note: Assets relating to individual variable life insurance and individual variable annuities are jointly invested at Sony Life.

Fair value information on money held in trust
Not applicable

Fair value information on derivative transactions
Not applicable

960

Number of Agencies

As of March 31,

2019

2020

Number of agencies

1,795

1,813

Sony Financial Holdings Inc. Financial Data Book 2020

■ Sony Life Performance Indicators (Non-consolidated)

10 Number of Employees and Recruits
10-01 Number of employees
2020

As of March 31,

2019

Office employees

2,627

2,850

[Male][1,266][1,368][Female][1,361][1,482]

5,834

5,792

[Male][5,674][5,641][Female]

[160]

[151]

2019

2020

Sales employees

10-02 Number of recruits
For the years ended March 31,

490

513

[Male]

[174]

[163]

[Female]

[316]

[350]

Office employees

434

378

[Male]

[410]

[365]

[Female]

[24]

[13]

Sales employees

10-03 Average age and years of service
2020

2019
As of March 31,

Average age

Average yearsof service

Average age

Average yearsof service

40.8

8.9

41.2

9.1

[Male][42.4][11.7][42.9][12.0][Female][39.4][6.4][39.7]

[6.5]

44.9

10.3

45.2

11.1

[Male][45.0][10.5][45.3][11.3][Female][39.6][3.3][40.6][4.4]

Office employees

Sales employees

11 Average Salary
11-01 Average salary (office employees)

Thousands of yen

For the years ended March 31,

2019

2020

Office employees

382

387

Note: The average monthly salary is the tax-inclusive standard salary in March for each fiscal year, excluding bonuses and overtime pay.

11-02 Average compensation (sales employees)

Thousands of yen

For the years ended March 31,

2019

2020

Office employees

756

704

Note: The average monthly compensation is the tax-inclusive compensation in March for each fiscal year, excluding bonuses and commuting
allowances.

Sony Financial Holdings Inc. Financial Data Book 202061

■ Sony Assurance

Financial Data
Balance Sheets
Sony Assurance Inc.
As of March 31, 2019 and 2020

Millions of yen, %

2020

2019
AmountComposition

AmountComposition

Change20,043

9.13%

28,671

12.21%

8,627

AssetsCash and deposits
Cash
Deposits

028,670Call loans̶̶

10,0004.26

10,000

Securities

157,959

71.92

147,81362.93(10,145)

0.54

(423)

6.32

4,832

8.47

1,275

Japanese government bonds

76,39072,078Japanese local government bonds

50,50442,610Japanese corporate bonds

29,26830,377

Japanese stocks

1,599

1,194

Foreign securities

198

Tangible fixed assets

1,689

1,553
0.77

1,266
152

Buildings

169

Construction in progress

63

57

Other tangible fixed assets

1,456

1,056

Intangible fixed assets

10,012

4.56

14,845

Software

6,646

7,624

Software in progress

3,356

7,210

9

11

Other intangible fixed assets
Other assets

18,6098.47

19,884

Accrued premiums

1,234

1,241

Due from reinsurers

290

67

Due from foreign reinsurers

15

31

11,11512,307

Accrued income

161

146

Money on deposits

530

543

Accounts receivable

Suspense payments
Deferred tax assets
Total Assets

62

0
20,043

Sony Financial Holdings Inc. Financial Data Book 2020

5,547

5,260
11,328

5.16

12,388

5.27

1,060

219,643100.00234,870

100.0015,227

■ Sony Assurance Financial Data

Millions of yen, %

2020

2019

Liabilities
Underwriting reserves
Reserve for outstanding losses
and claims
Underwriting reserves
Other liabilities
Due to reinsurers
Due to foreign reinsurers
Income taxes payable
Deposits received
Accounts payable
Suspense receipt
Reserve for employeesʼ retirement benefits
Reserve for employeesʼ bonuses
Reserve under the special laws
Reserve for price fluctuations
Total Liabilities
Net Assets
Common stock
Capital surplus
Capital reserve
Retained earnings
Legal retained earnings
Other retained earnings
Unappropriated retained earnings
Total shareholdersʼ equity
Net unrealized gains (losses) on
available-for-sale securities, net of taxes
Total valuation and translation adjustments
Total Net Assets
Total Liabilities and Net Assets

AmountComposition

AmountComposition

Change168,49476.71%

179,51176.43%

11,017

6.00

1,083

0.84
0.52
0.11

114

83.91

12,241

8.52
1.44

̶

40,674
127,819
13,018

5.93

235
5
1,938
73
5,099
5,666
1,857

0.85

1,236

0.56

238

0.11

238
184,84484.16

20,000

9.11

3,389

1.54

3,389
10,460

4.76

1,092
9,367
9,367
33,849

15.41

949

0.43

949

0.43

34,79815.84

219,643100.0040,354
139,157
14,101
380
9
1,808
74
5,179
6,649
1,972
1,231
268
268
197,085(4)29

20,0003,389
3,389
13,768
1,592
12,176
12,17637,158

5.86

3,308

15.82

3,308

626
626
37,785
234,870

0.27
0.27
16.09
100.00

̶

(322)
(322)
2,986
15,227

Sony Financial Holdings Inc. Financial Data Book 202063

■ Sony Assurance Financial Data

Statements of Income
Sony Assurance Inc.
For the years ended March 31, 2019 and 2020
2019

2020

115,102

121,728

6,626

Underwriting income

113,174

119,747

6,573

Net premiums written

113,101

119,352

Ordinary Revenues

ChangeInterest and dividends on deposits of premiums

72

74

Reversal of reserve for outstanding losses and claims

̶

320

1,857

1,935

1,372

1,337

Gains on sale of securities

557

672

Transfer to interest and dividends on deposits of premiums

(72)

(74)

70

44

(25)

108,204

113,655

5,450

78,43582,3683,933

Investment income
Interest income and dividends

Other ordinary income
Ordinary Expenses
Underwriting expenses

78

Net losses paid

56,60860,315

Loss adjustment expenses

8,220

9,001

Net commissions and brokerage fees

1,724

1,713

Provision for reserve for outstanding losses and claims

1,139

̶

Provision for underwriting reserves

10,741

11,3380̶0̶

29,766

31,283

1,517

2

3

0

Investment expenses
Losses on sale of securities

Operating, general and administrative expenses
Other ordinary expenses

(0)

2

3

6,897

8,072

1,175

Extraordinary Gains

̶

̶

̶

Extraordinary Losses

39

49

10

Losses on disposal of fixed assets

7

20

Provision for reserve under the special laws

31

29

Provision for reserve for price fluctuations

31

29

6,858

8,022

1,164

Income Taxes - Current

3,325

3,148

(176)

Income Taxes - Deferred(1,466)

(934)

531

Total Income Taxes

1,858

2,214

355

Net Income

4,999

5,808

808

Other ordinary expenses

Ordinary Profit

Income Before Income Taxes

64

Millions of yen

Sony Financial Holdings Inc. Financial Data Book 2020

■ Sony Assurance Financial Data

Statements of Changes in Net Assets
Sony Assurance Inc.
For the years ended March 31, 2019 and 2020

Millions of yen
2019
Shareholdersʼ equity
Capital surplus

Retained earnings (deficits)
Otherretainedearnings(deficits)

Balance at the beginning of the periodLegalretainedearnings

Total
Unappropriatedretained
Total
retainedearnings shareholdersʼearnings(deficits)
equity(deficits)

Commonstock

Capitalreserve

Total
capitalsurplus

20,000

3,389

3,389

610

7,261

7,872

31,261

Changes during the period
Dividends from surplus

̶

̶

̶

482

(2,894)(2,412)(2,412)

Net income

̶

̶

̶

̶

4,999

4,999

4,999

Net changes of items other thanshareholdersʼ equity

̶

̶

̶

̶

̶

̶

̶

Total changes during the period

̶

̶

̶

482

2,105

2,587

2,587

Balance at the end of the period

20,000

3,389

3,389

1,092

9,367

10,46033,849Millions of yen
2019
Valuation andtranslation adjustments
Net unrealized
Total
gains (losses)
valuation
on availableandfor- saletranslation
securities,
net of taxes adjustments
Balance at the beginning of the period

Total net
assets

1,927

1,927

33,189Dividends from surplus̶̶

(2,412)

Net income

̶

̶

4,999

(978)

(978)

(978)

Total changes during the period

(978)

(978)

1,609

Balance at the end of the period

949

949

34,798Changes during the period

Net changes of items other than shareholdersʼ equity

Sony Financial Holdings Inc. Financial Data Book 2020

65

■ Sony Assurance Financial Data

S t atements of Cha nges in Net As sets (Continue d)Millions of yen

2020
Shareholdersʼ equity
Capital surplus

Retained earnings (deficits)
Otherretainedearnings(deficits)
Legalretainedearnings

Unappropriated Total
retainedretained
Total
earnings shareholdersʼearnings(deficits)(deficits)
equityCommonstock

Capitalreserve

Total
capitalsurplus

20,000

3,389

3,389

1,092

9,367

10,46033,849Dividends from surplus

̶

̶

̶

500

(3,000)(2,500)(2,500)Net income

̶

̶

̶

̶

5,808

5,808

5,808

Net changes of items other thanshareholdersʼ equity

̶

̶

̶

̶

̶

̶

̶

Total changes during the period

̶

̶

̶

500

2,808

3,308

3,308

Balance at the end of the period

20,000

3,389

3,389

1,592

12,176

13,76837,158

Balance at the beginning of the period
Changes during the period

Millions of yen

2020
Valuation andtranslation adjustments
Net unrealized
gains (losses)
Total
on available- valuation
for- saleandsecurities, translation
Total
net of taxes adjustments net assets
949

949

34,798Dividends from surplus̶̶

(2,500)Net income

̶

̶

5,808

(322)

(322)

(322)

Total changes during the period

(322)

(322)

2,986

Balance at the end of the period

626

626

37,785

Balance at the beginning of the period
Changes during the period

Net changes of items other than shareholdersʼ equity

66

Sony Financial Holdings Inc. Financial Data Book 2020

■ Sony Assurance Financial Data

Statements of Cash Flows
Sony Assurance Inc.
For the years ended March 31, 2019 and 2020

Millions of yen

2020

2019

ChangeCash flows from operating activities
Income before income taxes

6,858

8,022

Depreciation and amortization

2,457

2,476

18

Increase (decrease) in reserve for outstanding losses and claims

1,139

(320)

(1,459)

Increase (decrease) in underwriting reserves

1,164

10,741

11,338596

Increase (decrease) in reserve for employeesʼ retirement benefits

189

114

(74)

Increase (decrease) in reserve for employeesʼ bonuses

103

(4)

(108)

Increase (decrease) in reserve for price fluctuations

31

29

(2)

Interest income and dividends(1,372)(1,337)35(Gains) losses on securities

(557)

(672)

(115)

(Gains) losses on tangible fixed assets

4

20

15

(Gains) losses on intangible fixed assets

2

̶

(2)

(Increase) decrease in other assets(excluding those related to investing and financing activities)(1,468)(1,291)

177

Increase (decrease) in other liabilities(excluding those related to investing and financing activities)

1,550

920

(629)

Subtotal

19,681

19,296(385)

Interest and dividends received

1,750

1,733

(17)

Income taxes (paid) refund(3,757)(3,297)459

Net cash provided by (used in) operating activities

17,674

17,73156

̶

(10,000)(10,000)

Cash flows from investing activities
Net (increase) decrease in call loans
Purchases of securities(43,286)(14,644)

28,641

Proceeds from sale and redemption of securities

29,505

24,634(4,870)Total of net cash provided by (used in) investment transactions(13,780)(9)13,770[Total of net cash provided by (used in) operating activities and investment transactions]［3,894］［17,721］［13,827］

(326)

(307)

19

Others, net(4,890)(6,287)(1,396)

Net cash provided by (used in) investing activities(18,998)(6,604)

12,393

Cash dividends paid

(2,412)(2,500)(88)

Net cash provided by (used in) financing activities(2,412)(2,500)

(88)

̶

̶

̶

Net increase (decrease) in cash and cash equivalents(3,735)

8,627

12,362

Cash and cash equivalents at the beginning of the period

23,77820,043(3,735)

Cash and cash equivalents at the end of the period

20,04328,671

8,627

Purchases of tangible fixed assets

Cash flows from financing activities

Effect of exchange rate changes on cash and cash equivalents

Sony Financial Holdings Inc. Financial Data Book 202067

■ Sony Assurance Financial Data

Notes
Sony Assurance Inc.
As of March 31, for the year ended March 31,
1. The total amount of deferred tax assets was ¥11,697 million, while the total amount of deferred tax liabilities was ¥369 million
for fiscal 2019. The breakdown of major factors giving rise to the deferred tax assets is underwriting reserves of ¥7,045 million
and reserve for outstanding losses and claims of ¥1,764 million.
The total amount of deferred tax assets was ¥12,632 million, while the total amount of deferred tax liabilities was ¥243 million
for fiscal 2020. The breakdown of major factors giving rise to deferred tax assets is underwriting reserves of ¥7,908 million andreserve for outstanding losses and claims of ¥1,732 million.
2. Information regarding retirement benefits is as follows:(1) Retirement benefit obligations and their breakdown
Millions of yen

2020

2019
Retirement benefit obligations(2,023)(1,960)

Unrecognized net actuarial gains (losses)

102

51

Reserve for employeesʼ retirement benefits(1,857)(1,972)(2) The main basis for calculating retirement benefit obligations, etc.
Method for attributing projected retirement benefits: Benefit formula basis

2020

2019
Discount rate
Number of years for amortizing net actuarial gains (losses)

0.3%

0.5%

10 years

10 years

3. The breakdown of retirement benefit expenses recorded as loss adjustment expenses and operating, general andadministrative expenses is as follows:
Millions of yen

2020

2019

68

241

Service cost

232

Interest cost

5

5

Recognized actual gains (losses)

17

17Retirement benefit expenses

255

264

Contribution to defined contribution pension plan

193

199

Total

449

464

Sony Financial Holdings Inc. Financial Data Book 2020

■ Sony Assurance Financial Data

1

Loans by Borrower Categor yMillions of yen

2020

2019

As of March 31,

Bankrupt and quasi-bankrupt loans̶̶

Doubtful loans̶̶Sub-standard loans̶̶Normal loans

̶

̶

Total

̶

̶

Notes: 1. Bankrupt and quasi-bankrupt loans Bankrupt and quasi-bankrupt loans are loans to borrowers who are subject to bankruptcy,
corporate reorganization or rehabilitation or other similar proceedings and other borrowers in serious financial difficulties.
2. Doubtful loans Doubtful loans are loans to borrowers (other than bankrupt and quasi-bankrupt borrowers) with deteriorated
financial condition and results of operations from which it is unlikely that the principal and interest on the loans will be recovered.
3. Sub-standard loans Sub-standard loans are loans on which principal and/or interest are past due for three months or more andrestructured loans, excluding loans described in notes 1. and 2. above. Restructured loans are loans on which terms and conditions
have been amended in favor of the borrowers (e.g., reduction of the original interest rate, deferral of interest payments, extension ofprincipal repayments or debt waiver) in order to support the borrowersʼ recovery from financial difficulties.
4. Normal loans Normal loans are loans that do not fall under the classifications for 1. to 3. above and where the borrowers have nofinancial or business performance problems.

2

Risk-monitored Loans
Millions of yen

2020

2019

As of March 31,

Bankrupt loans̶̶

Non-accrual delinquent loans̶̶

Past-due loans (3 months or more)̶̶

Restructured loans

̶

̶

Total

̶

̶

Notes: 1. Bankrupt loans Bankrupt loans are non-accrual loans which meet the event defined under Article 96, Paragraph 1, Item 3i through v (allowed limits for uncollectible accounts) or Article 96, Paragraph 1, Item 4 of the Order for Enforcement of the
Corporation Tax Act (Enforcement Order 97 (1965)). Non-accrual loans are loans (excluding the portion of the loans that were writtenoff), on which accrued interest receivable is not recognized because payments of principal or interest are overdue for considerable
periods and therefore are regarded as improbable.
2. Non-accrual delinquent loans Non-accrual delinquent loans are non-accrual loans other than bankrupt loans and loans on whichinterest payments are deferred in order to support the borrowersʼ recovery from financial difficulties.
3. Past-due loans (3 months or more) Past due loans are loans on which the payments of principals or interests are past the due
date for three months or more, and which are not classified to bankrupt loans or non-accrual delinquent loans.
4. Restructured loans Restructured loans are loans on which terms and conditions have been amended in favor of the borrowers(e.g., reduction of the original interest rate, deferral of interest payments, extension of principal repayments or debt waiver) in orderto support the borrowersʼ recovery from financial difficulties, excluding loans described in notes 1. to 3. above.

3

Assets and Liabilities

3-01

Securities
Millions of yen, %

2020

2019
As of March 31,

AmountComposition

AmountComposition

Japanese government bonds

76,39048.4%

72,078

48.8%

Japanese local government bonds

50,50432.0

42,61028.8

Japanese corporate bonds

29,26818.5

30,377

20.6

Japanese stocks

1,599

1.0

1,194

0.8

Foreign securities

198

0.1

1,553

1.1

157,959

100.0

147,813

100.0

Total

Sony Financial Holdings Inc. Financial Data Book 202069

■ Sony Assurance Financial Data

3-02

Yield on securities (yield on investments)%

For the years ended March 31,

2019

2020

Japanese bonds

0.89

0.88

Japanese stocks

1.00

1.16

Foreign securities

2.82

0.65

Other securities

̶

̶

Total

0.89

0.88

Yield on investments

1.25

1.32

Reference: Yield on investments (fair value basis)

0.36

1.02

3-03

Balance of securities by remaining period
Millions of yen
2019

As of March 31,

Within1 yearMore than
1 year to
3 years

More than
3 years to
5 years

More than
5 years to
7 years

More than Over 10 years
7 years to (including no
10 years fixed maturity)

Japanese government bonds

7,999

4,509

98

̶

1,490

62,292

76,390Japanese local government bonds

8,278

26,881

13,726

410

700

507

50,504

Japanese corporate bonds

Total

5,775

17,319

4,567

̶

300

1,304

29,268Japanese stocks

̶

̶

̶

̶

̶

1,599

1,599

Foreign securities

100

̶

97

̶

̶

̶

198

Other securities
Total

̶

̶

̶

̶

̶

̶

̶

22,153

48,71018,490410

2,491

65,703

157,959
Millions of yen

2020

As of March 31,

Within1 yearMore than More than More than More than Over 10 years
1 year to 3 years to 5 years to 7 years to (including no
10 years fixed maturity)
7 years
5 years
3 years

4,503

99

̶

̶

1,491

65,98472,078Japanese local government bonds

9,301

30,308

1,582

410

500

507

42,610Japanese corporate bonds

6,150

14,029

7,795

100

200

2,100

30,377

Japanese stocks

̶

̶

̶

̶

̶

1,194

1,194

Foreign securities

199

861

492

̶

̶

̶

1,553

Other securities

̶

̶

̶

̶

̶

̶

̶

Total

20,15645,298

9,870

510

2,191

69,786

147,813

3-04

Policy reserves and others

Reserve for outstanding losses and claims
As of March 31,

Millions of yen

2020

2019

Fire

5

37

Marine(4)0Personal accident

670

807

Voluntary automobile

39,54039,036

462

473

̶

̶

40,67440,354Compulsory automobile liability
Others
Total

70

Total

Japanese government bonds

Sony Financial Holdings Inc. Financial Data Book 2020

■ Sony Assurance Financial Data

Underwriting reserves

Millions of yen

2020

2019

As of March 31,

Fire

2,042

802
0

0

Personal accident

57,51961,854

Voluntary automobile

67,02372,358Compulsory automobile liability

2,473

2,901

MarineOthersTotal̶̶

127,819

139,157

Breakdown of the balance of underwriting reserves

Millions of yen
2019

As of March 31,

Unearnedpremium
reserve

Catastrophe Contingency
reserve
reserve

Refundreserve

Reserve forpolicyholdersʼ
dividends

Total

657

143

1

̶

̶

̶

0

̶

̶

̶

0

Personal accident

53,783

3,614

121

̶

̶

57,519Voluntary automobile

46,13920,878̶

6

̶

67,023

Compulsory automobile liability

2,473

̶

̶

̶

̶

2,473

̶

̶

̶

̶

̶

̶

103,054

24,636122

6

̶127,819Fire
MarineOthersTotal

802

Millions of yen

2020
As of March 31,

Fire
MarineUnearnedpremium Catastrophe Contingency
reserve
reserve
reserve

Refundreserve

Reserve forpolicyholdersʼ
dividends

Total

1,783

257

1

̶

̶

2,042

̶

0

̶

̶

̶

0

Personal accident

57,820

3,903

129

̶

̶

61,854

Voluntary automobile

48,65523,699̶3

̶

72,358Compulsory automobile liability

2,901

̶

̶

̶

̶

2,901

̶

̶

̶

̶

̶

̶

111,161

27,860131

3

̶

139,157

OthersTotal

Note: The underwriting reserves for earthquake insurance and compulsory automobile liability insurance are included in the unearned premium
reserve.

3-05

Calculation method for underwriting reserves

For the years ended March 31,

2020

2019

Calculation method
Policies subject to the standard underwriting reserves
Policies not subject to the standard underwriting reserves
Rate of reserve fundingStandard underwriting reserves

Standard underwriting reserves̶̶

100.0%

100.0%

Notes: 1. The calculation method and the rate of reserve funding are not applied for policies as pertaining to the classes of insurance listed in Article 3
Paragraph 5 Item 1 of the Insurance Business Act of Japan and whose principal insurance is pertaining to such classes of insurance.
2. The calculation method is described for insurance due reserves and refund reserve for deposits of premiums because the concept of acalculation method does not exist for other items.
3. Rate of reserve funding = (Unearned premium reserves actually accumulated + Refund reserves) / (Sum of (1) – (3) below)(1) Insurance due reserves and refund reserves calculated by the method stipulated in the Ministry of Finance Public Notice No. 48 of 1996
for policies subject to the standard underwriting reserves (limited to policies as defined in Article 68 Paragraph 2 of the Order for
Enforcement of the Insurance Business Act of Japan).
(2) Insurance due reserves for policies of which terms started after July 1, 2001, which are calculated by the net level premium reserve
method for policies not subject to the standard underwriting reserves, refund reserves for policies of which terms started after July 1,
2001 and for policies other than policies as defined in Article 68 Paragraph 2 of the Order for Enforcement of the Insurance Business Act
of Japan, and unearned premium reserves and refund reserves for policies of which terms started before July 1, 2001.
(3) Unearned premiums for policies of which terms started after July 1, 2001.

Sony Financial Holdings Inc. Financial Data Book 202071

■ Sony Assurance Financial Data

3-06

Other reserves
Millions of yen
2018

2019
For the year ended March 31,
Decrease

As ofMarch 31,

Increase

Specific

As ofMarch 31,

Other

Reserve for possible loan losses
General reserve for possible loan losses

̶

̶

̶

̶

̶

Specific reserve for possible loan losses

̶

̶

̶

̶

̶

Reserve for possible loan losses for specific foreign countries

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

1,132

1,236

1,132

̶

1,236

206

31

̶

̶

238

Total
Reserve for employeesʼ bonuses
Reserve for price fluctuations

Millions of yen

2020

2019

For the year ended March 31,
Decrease

As ofMarch 31,

Increase

Specific

As ofMarch 31,

Other

Reserve for possible loan losses
General reserve for possible loan losses

̶

̶

̶

̶

̶

Specific reserve for possible loan losses

̶

̶

̶

̶

̶

Reserve for possible loan losses for specific foreign countries

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

1,236

1,231

1,236

̶

1,231

238

29

̶

̶

268

Total
Reserve for employeesʼ bonuses
Reserve for price fluctuations

4

Profit and Loss

4-01

Gains (losses) on sale of securities and losses on valuation of securities
Millions of yen

2020

2019
For the years ended March 31,

Japanese government bonds, etc.

Losses on
sales

Devaluation
lossesGains on
sales

9

0

̶

1

Losses on Devaluation
sales
losses̶̶Japanese stocks

547

̶

̶

671

̶

̶

Foreign securities

̶

̶

̶

̶

̶

̶

557

0

̶

672

̶

̶

Total

4-02

Gains (losses) on trading securities

Not applicable

72

Gains onsales

Sony Financial Holdings Inc. Financial Data Book 2020

■ Sony Assurance Financial Data

4-03

Gains (losses) on sale or disposal of fixed assets
Millions of yen

2020

2019
Gains

For the years ended March 31,

Gains

Losses

LossesLand and buildings

̶

4

̶

5

Other tangible fixed assets

̶

0

̶

15

Intangible fixed assets

̶

2

̶

̶

Total

̶

7

̶

20

4-04

Operating expenses (including loss adjustment expenses)
Millions of yen

2020

2019

For the years ended March 31,

Personnel expenses

10,801

11,287

Non-personnel expenses

26,25928,012

925

985

Taxes
Contribution to fire prevention and traffic accident prevention0

0Contribution to Non-life Insurance Policyholders Protection Corporation of Japan̶̶

Net commissions and brokerage fees

1,724

1,713

Total

39,711

41,997

Note: The total of operating expenses above is the total amount of “loss adjustment expenses,” “operating, general and administrative
expenses” and “net commissions and brokerage fees” in the statements of income.

4-05

Depreciation and amortization
Millions of yen
2019
Depreciation
expenses

Accumulated
depreciation

620

31

450

169

620

31

450

169

̶

̶

̶

̶

Other tangible fixed assets

6,172

1,013

4,716

1,456

Software

23,988

1,412

17,342

6,646

Other intangible fixed assets

1,879

0

1,870

9

Total

32,6602,457

24,3788,282

For the year ended March 31,

Buildings
For corporate use
For rent

Acquisition cost

Balance at theend of the period

Millions of yen

2020
For the year ended March 31,

Acquisition cost

Depreciation
expenses

Accumulated Balance at the
depreciation end of the period

600

29

447

152

600

29

447

152

̶

̶

̶

̶

Other tangible fixed assets

6,461

784

5,405

1,056

Software26,6281,662

19,004

7,624

Other intangible fixed assets

1,881

0

1,870

11

Total

35,572

2,476

26,727

8,844

Buildings
For corporate use
For rent

Sony Financial Holdings Inc. Financial Data Book 202073

■ Sony Assurance Financial Data

5

Fair Value Information, etc.

5-01

Securities

Trading securities
Not applicable

Held-to-maturity securities

Millions of yen

2020

2019

Balance sheet
Difference
amountFair value

Difference

21,65074,58797,506

22,918

10

98

104

6

101,779

21,66074,68597,611

22,925

̶

̶

̶

3,628

3,555

(72)

̶

̶

̶

̶

̶

̶

Balance sheet
amountFair value

Japanese bonds

79,921

101,571

Foreign securities

198

208

80,119Japanese bonds
Foreign securities

As of March 31,

Fair value exceeding balance sheet amount

Subtotal
Fair value not exceeding balance sheet amount

Subtotal
Total

̶

̶

̶

3,628

3,555

(72)

80,119101,779

21,66078,314

101,167

22,852

Stock of subsidiaries and affiliated companies
Not applicable

Available-for-sale securities

Millions of yen

2020

2019
As of March 31,

Balance sheet Acquisition
amountcost

Difference

Balance sheet Acquisition
amountcost
Difference

Balance sheet amount exceeding acquisition cost
Japanese bonds

49,97049,89970

21,81921,796

23

Japanese stocks

1,599

324

1,274

1,194

202

991

Subtotal

51,56950,223

1,345

23,014

21,998

1,015

Japanese bonds

26,271

26,298(27)

45,02945,124(95)

Japanese stocks

̶

̶

̶

̶

̶

̶

Foreign securities

̶

̶

̶

1,455

1,505

(49)

Balance sheet amount not exceeding acquisition cost

Subtotal
Total

26,271

26,298(27)

46,485

46,630(144)

77,84076,521

1,318

69,49968,628870

Available-for-sale securities sold during the year

Millions of yen

2020

2019
For the years ended March 31,

Total gains
on salesTotal losses Amount of Total gains Total losses
on salessales
on saleson salesJapanese bonds

3,108

9

0

1,701

1

̶

Japanese stocks

637

547

̶

794

671

̶

3,746

557

0

2,496

672

̶

Total

74

Amount ofsalesSony Financial Holdings Inc. Financial Data Book 2020

■ Sony Assurance

Performance Indicators
1

Principal Indicator s of Operating Per formance
Millions of yen

For the years ended March 31,

2016

2017

2018

2019

2020

Net premiums written

95,549100,274

108,254

113,101

119,352

Year-on-year change

4.2%

4.9%

8.0%

4.5%

5.5%

3,470

3,070

4,863

5,050

6,165

14.0%

(11.5%)

58.4%

3.8%

22.1%

96,905102,333

110,092

115,102

121,728

4.2%

5.6%

7.6%

4.6%

5.8%

4,680

4,996

6,574

6,897

8,072

11.2%

6.8%

31.6%

4.9%

17.0%

2,586

3,515

4,821

4,999

5,808

15.8%

35.9%

37.2%

3.7%

16.2%

Net loss ratio

57.8%

57.5%

55.9%

57.3%

58.1%

Net expense ratio

27.1%

28.3%

28.5%

27.8%

27.6%

Interest income and dividends

1,313

1,327

1,324

1,372

1,337

3.6%

1.0%

(0.2%)

3.7%(2.6%)

Yield on investments (income basis)

1.03%

0.95%

0.85%

0.80%

0.74%

Yield on investments (realized basis)

1.03%

1.44%

1.15%

1.12%

1.11%

127,256

137,553

145,349

157,959

147,813

̶

̶

̶

̶

̶

Underwriting reserves

95,704

106,173

117,077

127,819

139,157

Common stock

20,00020,00020,00020,00020,000400,000

400,000

400,000

400,000

400,000

Underwriting profit
Year-on-year change
Ordinary revenues
Year-on-year change
Ordinary profit
Year-on-year change
Net income
Year-on-year change

Year-on-year change

Securities
Loans

Number of shares issued and outstanding (shares)
Total net assets

28,30529,40933,18934,79837,785

Total assets

172,323

186,537

204,362

219,643234,870

̶

̶

̶

̶

̶

Capital adequacy ratio

16.4%

15.8%

16.2%

15.8%

16.1%

Dividend payout ratio

50.0%

50.0%

50.0%

50.0%

50.0%

Non-consolidated solvency margin ratio

693.5%

730.8%

782.1%

813.0%

872.3%

1,178

1,203

1,235

1,303

1,351

Assets accounted for as deposit premium accounts

Number of employees

Sony Financial Holdings Inc. Financial Data Book 202075

■ Sony Assurance Performance Indicators

2

Under writing Per formance

2-01

Direct premiums written
Millions of yen, %

2020

2019
For the years ended March 31,

Fire

AmountComposition YoY change

616

0.5%

198.8%

̶̶̶MarineAmountComposition YoY change

2,275
̶

1.9%

269.2%

̶̶

Personal accident

8,823

7.9

1.7

9,253

7.8

4.9

Voluntary automobile

102,758

91.6

4.7

107,606

90.3

4.7

Compulsory automobile liability

̶

̶

̶

̶

̶

̶

Others

̶

̶

̶

̶

̶

̶

112,198

100.0

4.8

119,135

100.0

(0.6)

88

Total
Direct premiums written per employee

86

6.2
2.4

Notes: 1. Direct premiums written = Gross premiums written – (Surrender benefits of direct policies + Other returned direct premiums)
2. Direct premiums written per employee = Direct premiums written / Number of employees
3. Sony Assurance has no deposits of premiums.

2-02

Net premiums written
Millions of yen, %

2020

2019
For the years ended March 31,

AmountComposition YoY change

AmountComposition YoY change

265

0.2%

1,533.0%

1,284

(0)

(0.0)

(100.0)0

0.0

̶Personal accident

8,872

7.8

(0.2)

9,044

7.6

1.9

Voluntary automobile

102,458

90.6

4.7

107,311

89.9

4.7

1,505

1.3

2.4

1,712

1.4

13.8

̶

̶

̶

̶

̶

̶

113,101

100.0

4.5

119,352

100.0

5.5

Fire
MarineCompulsory automobile liability
OthersTotal

1.1%

384.6%

Note: Net premiums written = Direct premiums written + Assumed net premiums written – Ceded net premiums written

2-03

Net losses paid, net loss ratio
Millions of yen, %

2020

2019
For the years ended March 31,

AmountComposition Net loss ratio

Amount

15

0.0%

21.0%

205

0.3%

20.0%

Marine

10

0.0

̶

(3)

(0.0)

̶

39.2

Personal accident

3,009

5.3

37.6

3,249

5.4

Voluntary automobile

52,223

92.3

58.6

55,51892.0

59.8

Compulsory automobile liability

1,350

2.4

89.7

1,346

2.2

78.6

̶

̶

̶

̶

̶

̶

56,608

100.0

57.3

60,315

100.0

58.1

Others
Total

Notes: 1. Net losses paid = Direct net losses paid + Assumed net losses paid – Reinsurance losses recovered
2. Net loss ratio = (Net losses paid + Loss adjustment expenses) / Net premiums written

76

Composition Net loss ratioFireSony Financial Holdings Inc. Financial Data Book 2020

■ Sony Assurance Performance Indicators

2-04

Expenses and net expense ratio related to underwriting
Millions of yen

2020

2019

For the years ended March 31,

31,411

32,925

Operating, general and administrative expenses related to underwriting

29,687

31,212

Net commissions and brokerage fees

1,724

1,713

27.8%

27.6%

Expenses related to underwriting

Net expense ratio**Net expense ratio = Expenses related to underwriting / Net premiums written

2-05

Underwriting profit
Millions of yen

For the years ended March 31,

2019

2020

Underwriting income

113,174

119,747

Underwriting expenses

78,43582,368Operating, general and administrative expenses

29,687

31,212

(1)

(1)

5,050

6,165

Other income (expenses)
Underwriting profit

Notes: 1. Operating, general and administrative expenses is the amount related to underwriting in “Operating, general and administrative
expenses” in the statements of income.
2. Other income (expenses) is the amount equivalent to the corporate income taxes for compulsory automobile liability insurance, etc.

Underwriting profit by type of policy

Millions of yen

2020

2019

For the years ended March 31,

Fire(1,075)(1,788)(7)(0)

Personal accident(2,717)(1,773)

Voluntary automobile

8,852

9,728

Compulsory automobile liability̶̶

Others

̶

̶

5,050

6,165

Marine

Total

2-06

Net loss ratio, net expense ratio and combined ratio
%

2020

2019
For the years ended March 31,

Net lossratio

Net expense Combined*
ratio
ratio

Net lossratio

Net expense Combined*
ratio
ratio

21.0

346.7

367.7

20.0

120.1

140.2

̶

̶

̶

̶

̶

̶

Personal accident

37.6

34.8

72.4

39.2

31.0

70.2

Voluntary automobile

58.6

26.7

85.4

59.8

26.6

86.4

Compulsory automobile liability

89.7

̶

89.7

78.6

̶

78.6

Others

̶

̶

̶

̶

̶

̶

Total

57.3

27.8

85.1

58.1

27.6

85.7

Fire
Marine*Combined ratio = Net loss ratio + Net expense ratio

Sony Financial Holdings Inc. Financial Data Book 202077

■ Sony Assurance Performance Indicators

3

Asset Management

3-01

Asset management policy

The goal is to assure stable medium- to long-term returns taking into consideration the market environment and asset
management risk, as well as current level and future fluctuations of interest rates.
Investments are primarily made with Japanese yen-denominated bonds. Investments are also made based upon theconsideration of diversification of timing of investments as well as the timing of re-investments. Thus, the investment portfolio isbuilt in such a way that stable returns are assured.

3-02

Overview of asset management
Millions of yen, %

2020

2019
As of March 31,

Cash and deposits

20,043Composition

AmountComposition

9.1%

28,67012.2%

Call loans̶̶

10,000

4.3

Bond trading with repurchase agreement

̶

̶

̶

̶

Bonds paid for securities borrowing transactions

̶

̶

̶

̶

Monetary claims purchased

̶

̶

̶

̶

Securities under proprietary accounts

̶

̶

̶

̶

Money held in trust
Securities
Loans

̶

̶

̶

̶

157,95971.9

147,813

62.9

̶

̶

̶

̶

169

0.1

152

0.1

Total

178,17281.1

186,637

79.5

Total assets

219,643100.0

234,870

100.0Land and buildings

78

AmountSony Financial Holdings Inc. Financial Data Book 2020

■ Sony Assurance Performance Indicators

3-03

Interest income and dividends, yield on investments (income basis)

Millions of yen, %

2020

2019
Cash and deposits

0

0.00%

Call loans̶̶

Amount00Bond trading with repurchase agreement

̶

̶

̶

̶

Bonds paid for securities borrowing transactions

̶

̶

̶

̶

Monetary claims purchased

̶

̶

̶

̶

Securities under proprietary accounts

̶

̶

̶

̶

Money held in trust

̶

̶

̶

̶

1,372

0.89

1,336

0.88

Loans

̶

̶

̶

̶

Land and buildings

̶

̶

̶

̶

1,372

0.80

1,337
0
1,337

0.74

For the years ended March 31,

Securities

Subtotal

AmountOthers

Yield

0

Total

1,372

Yield on investments (realized basis)

1.12(Reference) Yield on investments (fair value basis)

0.33

Yield
0.00%
0.01

1.11
0.85

Notes: 1. Total revenues are equal to “interest income and dividends” in the statements of income of Sony Assurance.
2. Calculation methods for yield on investments are as follows:(1) Yield on investments (income basis)
The results of investment in assets are indicated as income revenues (interest income and dividends). Interest income anddividends on investment assets is the numerator, and acquisition cost is the denominator.
• Numerator: Interest income and dividends• Denominator: Average balance of either acquisition cost or amortized cost(2) Yield on investments (realized basis)
The results of investment in assets are indicated as the contribution to net income (loss) for the period (statements of income).
Realized profit and loss is the numerator, and acquisition cost is the denominator.
• Numerator: Investment income + Interest and dividends on deposits of premiums – Investment expenses• Denominator: Average balance of either acquisition cost or amortized cost(3) (Reference) Yield on investments (fair value basis)
An indicator of investment efficiency based on fair value. Realized profit and loss plus net unrealized gains (losses) is thenumerator, and fair value of investment assets is the denominator.
• Numerator = (Investment income + Interest and dividends on deposits of premiums – Investment expenses) + (Net unrealized
gains (losses) at end of period* – Net unrealized gains (losses) at end of previous period*)• Denominator = Average balance of either acquisition cost or amortized cost + Net unrealized gains (losses) on available-for-salesecurities at end of previous period**Amounts before tax deductions

3-04

Overseas investment

Millions of yen, %

2020

2019
As of March 31,

AmountComposition

AmountComposition

Foreign currency denominatedForeign bonds

̶

̶%

̶

̶%

Foreign stocks

̶

̶

̶

̶

Others̶̶̶̶

Subtotal

̶

̶

̶

̶

̶

̶

̶

̶

100.0

Yen denominated
Loans to borrowers outside Japan

198

100.0

1,553

Others̶̶̶̶

Subtotal

198

100.0

198

100.0

1,553
1,553

100.0
100.0

Foreign bonds

Total
Yield on overseas investments
Yield on investments (income basis)

2.82%

Yield on investments (realized basis)

2.82(Reference) Yield on investments (fair value basis)

2.82

0.65%
0.65
(3.67)

Note: “Yield on overseas investments” is calculated with respect to assets relating to overseas investments, using the formula equivalent to the“Calculation methods for yield on investments” in Note 2 of “3-03 Interest income and dividends, yield on investments (income basis).”Sony Financial Holdings Inc. Financial Data Book 2020

79

■ Sony Assurance Performance Indicators

4Non- consolidated Solvency Margin Ratio
Millions of yen

As of March 31,(A) Total non-consolidated solvency margin
Capital or treasury, etc.
Reserve for price fluctuations
Contingency reserve
Catastrophe reserve
General reserve for possible loan losses
Net unrealized gains (losses) on available-for-sale securities and net deferred gains (losses) on
hedging instruments (before tax deductions)
Net unrealized gains (losses) on real estate
Excess refund reserve
Subordinated debt
The portion of the excess refund reserve and subordinated debt that is not included in the margin
Deductible items
Others(B) Total non-consolidated risk
(R1 + R2)2 + (R3 + R4)2 + R5 + R6
Ordinary insurance risk
R1
Third-sector insurance risk
R2
Assumed interest rate risk
R3
Asset management risk
R4
Business management risk
R5
Major catastrophe risk
R6(C) Non-consolidated solvency margin ratio[(A)/{(B) × (1/2)}] × 100

2019
60,01031,349238
122
24,636
̶

1,186
̶
̶
̶
̶
̶

2020
66,67434,252268
131
27,860
̶

783
̶
̶
̶
̶
̶

2,476

3,379

14,76013,181
0
123
1,861
325
1,105

15,286
13,711
0
132
1,829
335
1,100

813.0%

872.3%

Note: The above figures are calculated based on the provisions in Articles 86 and 87 of the Ordinance for Enforcement of the Insurance
Business Act of Japan and the Ministry of Finance Public Notice No. 50 (1996) applicable as of the end of the respective fiscal years.
Therefore, simple comparisons cannot be made between the figures for each year.

• Breakdown of non-consolidated solvency margin:
1. Capital or treasury, etc.
Net assets of the balance sheets, excluding the amount of expected outflow from the company as disposal of surplus,
such as dividends to shareholders, deferred assets and the amount of valuation and translation adjustments.
2. Reserve for price fluctuations
The reserve for price fluctuations shown on the balance sheets.
3. Contingency reserve
The contingency reserve included in underwriting reserves shown on the balance sheets.
4. Catastrophe reserve
The total amount of both the catastrophe reserve and the contingency reserve concerning residential earthquake insurance
that are included in underwriting reserves shown on the balance sheets.
5. General reserve for possible loan losses
The general reserve for possible loan losses included in the reserve for possible loan losses shown on the balance sheets.
This does not apply to Sony Assurance.
6. Net unrealized gains (losses) on available-for-sale securities and net deferred gains (losses) on hedging instruments (before
tax deductions)
Net unrealized gains (losses) on available-for-sale securities (securities other than trading securities, held-to-maturity
securities, stock of subsidiaries and affiliated companies) and associated net deferred gains (losses) on hedging
instruments.
7. Net unrealized gains (losses) on real estate
Net unrealized gains (losses) on real estate, representing the difference between the fair value of land, leaseholds and otherproperties and their respective balance sheet amount (amounts shown on the balance sheets). This does not apply toSony Assurance.
8. Excess refund reserve
Excess refund reserve refers to the surplus refund reserve included in underwriting reserves shown on the balance sheets.
This does not apply to Sony Assurance.

80

Sony Financial Holdings Inc. Financial Data Book 2020

■ Sony Assurance Performance Indicators

9. Subordinated debt
Subordinated debt refers to those funds raised by taking out subordinated loans, issuing subordinated bonds or throughother means that meet a certain set of conditions. This does not apply to Sony Assurance.
10. The portion of the excess refund reserve and subordinated debt that is not included in the margin
If the total amount of 8. and 9. above exceeds the base amount calculated according to the method prescribed by laws
and regulations, such excess amount shall be deducted from the non-consolidated solvency margin. This does not apply
to Sony Assurance.
11. Deductible items
If an insurance company owns the stock of other insurance companies or financial institutions, or possesses other suchmeans of raising funds, and that ownership qualifies as “intentional possession” as governed by the overall supervisory
guidelines for insurance companies, then those funds must be deducted from the non-consolidated solvency margin. This
does not apply to Sony Assurance.
12. Others
Others refers to deferred tax assets related to other retained earnings (deficits) included in the net assets section of thebalance sheets.

Non-consolidated Solvency Margin Ratio
Non-life insurance companies maintain reserves to ensure their ability to pay claims when accidents occur and return
contracted amounts at maturity on savings-type insurance. Non-life insurance companies must also maintain sufficient ability tocover against risk events which exceed its normal estimates, i.e., occurrence of a major catastrophe or a dramatic drop in thevalue of the assets they hold.
Total risk (item (B) in the table) indicates risk events which exceed the normal estimates. The non-consolidated solvency
margin ratio (item (C) in the table) is an indicator of an insurerʼs ability to pay, calculated as prescribed by the Insurance
Business Act of Japan, based on its percentage holdings of capital and other reserves (in other words, the total nonconsolidated solvency margin, as indicated by (A)).
Non-consolidated Solvency Margin Ratio (%) =Ability to pay, indicated by such factors as capital and reserves
Risk events which exceed the normal estimates × 1/2

× 100• “Risk events which exceed the normal estimates” refers to the total of the amounts represented by the following risks:① Insurance underwriting risk (ordinary insurance risk, third-sector insurance risk)
Risk which exceeds the normal estimates for the rate of accident occurrence (excluding major catastrophe risk)② Assumed interest rate risk
Risk that actual investment yields will fall below the investment yield assumed when calculating premiums③ Asset management risk
Risk arising from such factors as unexpectedly large fluctuations in prices on held securities and other assets④ Business management risk
Unexpected risk to business management other than ① through ③ above and ⑤⑤ Major catastrophe risk
Risk arising from major catastrophes (such as the Great Kanto Earthquake and the Ise Bay Typhoon)• A non-life insurerʼs ability to pay (total non-consolidated solvency margin), as indicated by such factors as its capital andreserves, is the total of the insurerʼs net assets (excluding the amount of expected outflow from the company), reserves (suchas the reserve for price fluctuations and catastrophe reserve) and a portion of its net unrealized gains on real estate.
• The non-consolidated solvency margin ratio is one of the objective indicators used by the insurance regulatory authorities tosupervise insurers. When this ratio is 200% or higher, an insurer is judged to have sufficient ability to satisfy claims and otherpayments.

Sony Financial Holdings Inc. Financial Data Book 202081

■ Sony Bank

Financial Data (Consolidated)
Consolidated Balance Sheets
Sony Bank Inc. and consolidated subsidiaries
As of March 31, 2019 and 2020

Millions of yen
2019

2020

Cash and due from banks

344,377

317,619

Monetary claims purchased

4,916

6,006

Money held in trust

21,937

23,107

Assets694,447

701,332

1,744,103

1,979,126

Foreign exchanges

8,471

3,019

Other assets

51,68551,733

Tangible fixed assets

1,633

1,493

628

584

Securities
Loans

Buildings
Other tangible fixed assets
Intangible fixed assets
Software

1,004

909

6,903

6,930

6,888

6,914

14

15

Deferred tax assets

1,305

7,052

Reserve for possible loan losses

(903)

(846)

2,878,879

3,096,574

2,358,182

2,476,986

130,611

176,256

Other intangible fixed assets

Total Assets

Liabilities
Deposits
Call money and bills soldPayables under repurchase agreements

20,29041,093

Borrowed money

210,000

247,923244

684

67,752

71,283

777

467

1,323

1,290

Foreign exchanges
Other liabilities
Reserve for employeesʼ bonuses
Net defined benefit liability

125

111

2,789,308

3,016,096

Common stock

31,00031,000Capital surplus

21,00021,000Retained earnings

33,067

37,136

Total shareholdersʼ equity

85,067

89,136

Net unrealized gains (losses) on available-for-sale securities, net of taxes

3,974(10,299)

Net deferred gains (losses) on hedging instruments, net of taxes(1,260)(556)

Remeasurements of defined benefit plans, net of taxes

(106)

(53)

Total accumulated other comprehensive income

2,606(10,909)

Non-controlling interests

1,896

2,250

Total Net Assets

89,57080,4772,878,879

3,096,574

Provision for reimbursement of deposits
Total Liabilities

Net Assets

Total Liabilities and Net Assets

82

Sony Financial Holdings Inc. Financial Data Book 2020

■ Sony Bank Financial Data (Consolidated)

Consolidated Statements of Income
Sony Bank Inc. and consolidated subsidiaries
For the years ended March 31, 2019 and 2020

Millions of yen

2020

2019

Ordinary Revenues
Interest income
Interest income on loans
Interest income and dividends on securities
Interest income on call loans and bills boughtInterest income on deposits with banks
Other interest income
Fees and commissions
Other operating income
Other ordinary income
OthersOrdinary Expenses
Interest expenses
Interest expenses on deposits
Interest expenses on call money and bills soldInterest on payables under repurchase agreements
Interest expenses on borrowed money
Other interest expenses
Fees and commissions
Other operating expenses
General and administrative expenses
Other ordinary expenses
Provision for reserve for possible loan losses
Other ordinary expenses
Ordinary Profit
Extraordinary Gains
Other extraordinary gains
Extraordinary Losses
Losses on disposal of fixed assets
Impairment losses
Other extraordinary losses
Income Before Income Taxes
Income Taxes - Current
Income Taxes - Deferred
Total Income Taxes
ProfitProfit Attributable to Non-controlling Interests
Profit Attributable to Owners of the Parent

50,272
33,95018,72915,148061
1012,376
3,515
429
429
39,582
9,270
7,276
269
348
88
1,287
9,089
126
20,914181
38
142
10,69016
1657
546,01831,926
17,473
14,382
1
62
7
9,650
3,926
515
515
36,423
8,643
6,747
88
312
88
1,407
8,083
485
18,801
409
167
242
9,595
̶
̶

47
20
27

̶

̶

52
10,648
3,159
75
3,235
7,413
331
7,082

9,547
3,116
(177)
2,939
6,608
250
6,357

Consolidated Statements of Comprehensive Income
Sony Bank Inc. and consolidated subsidiaries
For the years ended March 31, 2019 and 2020

Millions of yen
2019ProfitOther Comprehensive Income
Net unrealized gains (losses) on available-for-sale securities, net of taxes
Net deferred gains (losses) on hedging instruments, net of taxes
Remeasurements of defined benefit plans, net of taxes
Comprehensive Income
Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests

6,608(2,243)(2,063)
(174)
(6)
4,364
4,116
248

2020
7,413
(13,494)(14,274)703
76(6,080)(6,434)353

Sony Financial Holdings Inc. Financial Data Book 202083

■ Sony Bank Financial Data (Consolidated)

Consolidated Statements of Changes in Net Assets
Sony Bank Inc. and consolidated subsidiaries
For the years ended March 31, 2019 and 2020

Millions of yen
2019
Shareholdersʼ equity
Total
Retained shareholdersʼearnings
equityCommonstock

Capitalsurplus31,00021,00028,94880,948Dividends from surplus̶̶

(2,238)(2,238)

Profit attributable to owners of the parent

̶

̶

6,357

6,357

Net changes of items other than shareholdersʼ equity

̶

̶

̶

̶

Total changes during the period

̶

̶

4,119

4,119

Balance at the end of the period

31,00021,00033,06785,067

Balance at the beginning of the period
Changes during the period

Millions of yen
2019
Accumulated other comprehensive income
Net unrealized
gains (losses) Net deferred RemeasureTotal
on available- gains (losses) ments ofaccumulatedfor- saleon hedging
definedother
Nonsecurities, instruments, benefit plans, comprehensive controlling
net of taxes net of taxes net of taxes
incomeinterests
Balance at the beginning of the period

Total net
assets

6,037(1,086)

(103)

4,847

1,648

87,444

̶

̶

̶

̶

̶

(2,238)Changes during the period
Dividends from surplus

̶

̶

̶

̶

̶

6,357

(2,063)

(174)

(3)

(2,241)248(1,992)

Total changes during the period(2,063)

(174)

(3)

(2,241)

248

2,126

Balance at the end of the period

3,974(1,260)

(106)

2,606

1,896

89,570

Profit attributable to owners of the parent
Net changes of items other than shareholdersʼ equity

84

Sony Financial Holdings Inc. Financial Data Book 2020

■ Sony Bank Financial Data (Consolidated)

Millions of yen

2020
Shareholdersʼ equity
Total
Retained shareholdersʼearnings
equityCommonstock

Capitalsurplus31,00021,00033,06785,067

Dividends from surplus̶̶

(3,013)(3,013)

Profit attributable to owners of the parent

̶

̶

7,082

7,082

Net changes of items other than shareholdersʼ equity

̶

̶

̶

̶

Total changes during the period

̶

̶

4,068

4,068

Balance at the end of the period

31,00021,00037,136

89,136

Balance at the beginning of the period
Changes during the period

Millions of yen

2020
Accumulated other comprehensive income
Net unrealized
gains (losses) Net deferred RemeasureTotal
on available- gains (losses) ments ofaccumulated
definedfor- saleon hedging
otherNonsecurities, instruments, benefit plans, comprehensive controlling Total net
net of taxes net of taxes net of taxes
incomeinterests
assetsBalance at the beginning of the period

3,974(1,260)

(106)

2,606

1,896

89,570

̶

̶

̶

̶

̶

(3,013)

Changes during the period
Dividends from surplus

̶

̶

̶

̶

̶

7,082

(14,274)703

53(13,516)353(13,162)

Total changes during the period(14,274)703

53(13,516)353(9,093)

Balance at the end of the period(10,299)

(556)

(53)

(10,909)2,250

80,477

Profit attributable to owners of the parent
Net changes of items other than shareholdersʼ equity

Sony Financial Holdings Inc. Financial Data Book 202085

■ Sony Bank Financial Data (Consolidated)

Consolidated Statements of Cash Flows
Sony Bank Inc. and consolidated subsidiaries
For the years ended March 31, 2019 and 2020

Millions of yen

2020

2019
Cash flows from operating activities
Income before income taxes

9,547

10,648Depreciation and amortization

1,952

2,261

Impairment losses27̶

Increase (decrease) in reserve for possible loan losses

96

(57)

Increase (decrease) in reserve for employeesʼ bonuses

8

(310)

Increase (decrease) in net defined benefit liability

70

76

43

(13)

Interest income - accrual basis(31,926)(33,950)

Interest expenses - accrual basis

8,643

9,270

(Gains) losses on securities(2,418)(6,017)

Increase (decrease) in provision for reimbursement of deposits(Gains) losses on money held in trust
Exchange (gains) losses

(0)

(49)

(3,803)

21,28453

8

Net (increase) decrease in loans(147,727)(235,023)

Net increase (decrease) in deposits

138,822

120,925

Net increase (decrease) in borrowed money (excluding subordinated borrowings)

30,00037,923(Gains) losses on disposal of fixed assets

461(1,090)Net increase (decrease) in call money and bills bought

54,902

66,448Net (increase) decrease in foreign exchange (assets)

874

5,452

Net (increase) decrease in call loans and bills sold

16

440

Interest income-cash basis

32,68335,316

Interest expenses-cash basis(8,183)(10,020)

Others, net

2,241

9,402

Subtotal

86,38732,926

Income taxes paid

(2,636)(3,582)

Net cash provided by (used in) operating activities

83,751

29,344(214,140)(219,537)

Net increase (decrease) in foreign exchange (liabilities)

Cash flows from investing activities
Purchases of securities
Proceeds from sale of securities

66,93533,780

Proceeds from redemption of securities

126,539

136,198

Investments in money held in trust(943)(1,169)Purchases of tangible fixed assets

(244)

(126)

Purchases of intangible fixed assets(3,033)(2,239)Others, net
Net cash provided by (used in) investing activities(0)3(24,887)(53,090)(2,238)(3,013)

Cash flows from financing activities
Cash dividends paid
Payments for leased obligations
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents

86

(0)

̶

(2,238)(3,013)̶̶

Net increase (decrease) in cash and cash equivalents

56,625(26,758)

Cash and cash equivalents at the beginning of the period

287,752

344,377

Cash and cash equivalents at the end of the period

344,377

317,619

Sony Financial Holdings Inc. Financial Data Book 2020

■ Sony Bank

Financial Data (Non-consolidated)
Balance Sheets
Sony Bank Inc.
As of March 31, 2019 and 2020

Millions of yen
2019

2020

343,063

310,724̶0343,063

310,724

Monetary claims purchased

4,916

6,006

Money held in trust

21,937

23,107

Securities

696,468

703,352

Japanese government bonds

64,12661,008Japanese local government bonds

20,04028,603

Japanese corporate bonds

49,99446,850Japanese stocks

2,050

2,050

Other securities

560,256

564,838

1,744,103

1,979,126

1,725,791

1,961,731

18,312

17,394

8,471

3,019

8,471

3,019

35,443

41,823

1,349

1,032

Prepaid expenses

200

310

Accrued income

4,189

3,791

Derivatives

4,084

6,376

Cash collateral paid for financial instruments

18,14823,684

Accounts receivable

5,005

4,053

Others

2,464

2,573

1,092

1,024

Buildings

575

533

Other tangible fixed assets

516

491

5,200

5,225

5,195

5,221

4

3

Deferred tax assets

1,133

6,909

Reserve for possible loan losses

(903)

(846)

2,860,925

3,079,472

AssetsCash and due from banks
Cash
Due from banks

Loans
Loans on deeds
Overdrafts
Foreign exchanges
Due from foreign banks
Other assets
Domestic exchange settlement account, debit

Tangible fixed assets

Intangible fixed assets
Software
Other intangible fixed assets

Total Assets

Sony Financial Holdings Inc. Financial Data Book 202087

■ Sony Bank Financial Data (Non-consolidated)

Ba la nce She ets (Continue d)Millions of yen
2019

2020

2,358,985

2,481,890

Liabilities
Deposits
Ordinary deposits
Time deposits

782,242868,926

1,147,048

1,147,175

429,694

465,788

Call money

130,611

176,256

Payables under repurchase agreements

20,29041,093

Borrowed money

210,000

247,923

Borrowed money

210,000

247,923

Foreign exchanges

244

684

Foreign bills sold73

45

Foreign bills payable

170

639

51,71752,743

Other deposits

Other liabilities

959

525

Income taxes payable

2,041

1,608

Accrued expenses

6,410

6,142

Initial margins of futures markets

18,98918,707

Derivatives

15,37922,985180

1,040

Domestic exchange settlement account, credit

Cash collateral received for financial instruments
Asset retirement obligations
Others

227

228

7,529

1,504

Reserve for employeesʼ bonuses

677

361

Reserve for employeesʼ retirement benefits

994

1,068

125

111

2,773,646

3,002,133

Common stock

31,00031,000Capital surplus

21,00021,000Capital reserves

21,00021,000Retained earnings

32,56536,195

Provision for reimbursement of deposits
Total Liabilities

Net Assets

Legal retained earnings

1,157

1,760

Other retained earnings

31,40734,434

31,40734,434

Total shareholdersʼ equity

84,56588,195Net unrealized gains (losses) on available-for-sale securities, net of taxes

3,974(10,299)

Net deferred gains (losses) on hedging instruments, net of taxes(1,260)(556)

Total valuation and translation adjustments

2,713(10,856)

Total Net Assets

87,27977,3382,860,925

3,079,472

Unappropriated retained earnings

Total Liabilities and Net Assets

88Sony Financial Holdings Inc. Financial Data Book 2020

■ Sony Bank Financial Data (Non-consolidated)

Statements of Income
Sony Bank Inc.
For the years ended March 31, 2019 and 2020

Millions of yen

2020

2019

Ordinary Revenues
Interest income
Interest income on loans
Interest income and dividends on securities
Interest income on call loans
Interest income on deposits with banks
Other interest income
Fees and commissions
Fees and commissions on domestic and foreign exchanges
Other fees and commissions
Other operating income
Gains on foreign exchange transactions
Gains on sale of bonds
Gains on derivatives
Other ordinary income
Income from money held in trust, net
OthersOrdinary Expenses
Interest expenses
Interest expenses on deposits
Interest expenses on call money
Interest on payables under repurchase agreements
Interest expenses on borrowed money
Interest expenses on interest rate swaps
Other interest expenses
Fees and commissions
Fees and commissions on domestic and foreign exchanges
Other fees and commissions
Other operating expenses
Losses on sale of bonds
General and administrative expenses
Other ordinary expenses
Provision for reserve for possible loan losses
Write-off of loans
OthersOrdinary Profit
Extraordinary Losses
Other extraordinary losses
Income Before Income Taxes
Income Taxes - Current
Income Taxes - Deferred
Total Income Taxes
Net Income

41,70731,926
17,473
14,382
1
62
7
5,338
338
5,000
3,926
3,599
274
51
515
0
515
33,009
8,643
6,747
88
312
88
1,400
7
7,573
338
7,234
485
485
15,901
405
167
0
238
8,698
̶
̶

8,698
2,828
(155)
2,673
6,025

45,383
33,95018,72915,148
0
61
10
7,487
391
7,095
3,515
3,258
208
48
429
49
380
35,793
9,269
7,276
269
348
88
1,280
6
8,476
423
8,052
126
126
17,782
138
38
̶

100
9,589
49
49
9,540
2,817
79
2,897
6,642

Sony Financial Holdings Inc. Financial Data Book 202089

■ Sony Bank Financial Data (Non-consolidated)

Statements of Changes in Net Assets
Sony Bank Inc.
For the years ended March 31, 2019 and 2020

Millions of yen
2019
Shareholdersʼ equity
Capital surplus

Retained earnings
Otherretainedearnings

Commonstock

Capitalreserves

Total
capitalsurplus31,00021,00021,000709

28,06828,77880,778Dividends from surplus

̶

̶

̶

447

(2,685)(2,238)(2,238)Net income

̶

̶

̶

̶

6,025

6,025

6,025

Net changes of items other thanshareholdersʼ equity

̶

̶

̶

̶

̶

̶

̶

Total changes during the period

̶

̶

̶

447

3,339

3,787

3,787

Balance at the end of the period

31,00021,00021,0001,157

31,40732,56584,565

Balance at the beginning of the period

Legal
Total
UnappropriatedTotal
retainedretained shareholdersʼretainedearnings
earnings
equityearnings

Changes during the period

Millions of yen
2019
Valuation and translation
adjustments
Net unrealized
gains (losses) Net deferredon available- gains (losses) Total valuation
for- saleon hedging
andsecurities, instruments, translation
net of taxes net of taxes adjustments
Balance at the beginning of the period

Total net
assets

6,037(1,086)

4,950

85,729Dividends from surplus

̶

̶

̶

(2,238)Net income

̶

̶

̶

6,025

(2,063)(174)(2,237)(2,237)

Total changes during the period(2,063)(174)(2,237)

1,549

Balance at the end of the period

3,974(1,260)2,713

87,279Changes during the period

Net changes of items other than shareholdersʼ equity

90

Sony Financial Holdings Inc. Financial Data Book 2020

■ Sony Bank Financial Data (Non-consolidated)

Millions of yen

2020
Shareholdersʼ equity
Capital surplus

Retained earnings
Otherretainedearnings

Common Capitalstock
reserves

Total
capitalsurplus

Legal Unappropriated Total
Total
retained shareholdersʼretainedretainedearnings
earnings
earnings
equity31,00021,00021,0001,157

31,40732,56584,565

Dividends from surplus

̶

̶

̶

602

(3,615)(3,013)(3,013)

Net income

̶

̶

̶

̶

6,642

6,642

6,642

Net changes of items other thanshareholdersʼ equity

̶

̶

̶

̶

̶

̶

̶

Total changes during the period

̶

̶

̶

602

3,026

3,629

3,629

Balance at the end of the period

31,00021,00021,0001,760

34,43436,19588,195

Balance at the beginning of the period
Changes during the period

Millions of yen

2020
Valuation and translation
adjustments
Net unrealized
gains (losses) Net deferredon available- gains (losses) Total valuation
for- saleon hedging
andsecurities, instruments, translation Total net
net of taxes net of taxes adjustments
assets
3,974(1,260)2,713

87,279Dividends from surplus

̶

̶

̶

(3,013)

Net income

̶

̶

̶

6,642

(14,274)703(13,570)(13,570)

Total changes during the period(14,274)703(13,570)(9,940)

Balance at the end of the period(10,299)(556)(10,856)

77,338

Balance at the beginning of the period
Changes during the period

Net changes of items other than shareholdersʼ equity

Sony Financial Holdings Inc. Financial Data Book 202091

■ Sony Bank Financial Data (Non-consolidated)

Notes
Sony Bank Inc.
As of March 31, for the year ended March 31,
The breakdown of major factors giving rise to deferred tax assets and deferred tax liabilities is as follows:
Millions of yen

2020

2019
Deferred tax assets
̶

5,369

Losses on valuation of securities

664

664

Reserve for possible loan losses

223

198

Provision for retirement benefits

304

327

Provision for bonuses

207

110

Net deferred losses on hedging instruments

556

245

Others

701

715

2,656

7,631

(664)

(664)

Net unrealized losses on available-for-sale securities

Subtotal of deferred tax assets
Valuation allowance on total deductible temporary differences
Subtotal of valuation allowance

(664)

(664)

Total deferred tax assets

1,992

6,967

Deferred tax liabilities

92

Net unrealized gains on available-for-sale securities

796

̶

Others62

58

Total deferred tax liabilities

859

58

Net deferred tax assets

1,133

6,909

Sony Financial Holdings Inc. Financial Data Book 2020

■ Sony Bank Financial Data (Non-consolidated)

1

Loans by Borrower Categor yMillions of yen

2020

2019

As of March 31,

Category
Bankrupt and quasi-bankrupt loans

596

483

Doubtful loans

807

822

Sub-standard loans

800

814

1,751,032

1,980,703

1,753,237

1,982,824

Normal loans
Total

Note: The above table is based on “Act on Emergency Measures for the Revitalization of the Financial Functions.”

2

Risk-monitored Loans
Millions of yen

Bankrupt loans
Non-accrual delinquent loans
Past-due loans (3 months or more)
Restructured loans
Total

3

2020

2019

As of March 31,

180

186

1,220

1,114

̶

̶

800

814

2,201

2,115

Profit and Loss

3-01

Gross operating profit
Millions of yen

2020

2019
For the years ended March 31,

Net interest income

Domestic
divisionInternational
division

16,415

6,891

Domestic International
division
division

Total
23,307［33］

17,4407,266

20,15914,180

2,718

6,914

Total
24,707［388］

Interest income

18,932

13,027

Interest expenses

2,516

6,136

(2,367)132(2,234)(1,102)

113

(988)

Fees and commissions received

5,063

275

5,338

7,201

285

7,487

Fees and commissions paid

Net fees and commissions

31,926［33］

8,619

33,950
［388］

9,243

7,430

142

7,573

8,303

172

8,476

Net trading income

̶

̶

̶

̶

̶

̶

Trading income

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

Net other operating income

(220)

3,661

3,441

183

3,204

3,388

Other operating income

257

3,669

3,926

186

3,329

3,515

Other operating expenses

477

7

485

2

124

126

Gross operating profit

13,828

10,68524,514

16,522

10,584

27,106Gross operating profit ratio

0.62%

1.91%

0.89%

0.69%

1.77%

0.91%

Trading expenses

Notes: 1. The Domestic division deals with transactions denominated in Japanese yen, whereas the International division deals withtransactions denominated in foreign currencies (foreign currency deposits, foreign securities, etc.). Non-resident transactions
denominated in Japanese yen are included in the International division.
2. Interest expenses exclude estimated interest expenses on money held in trust (¥24 million in fiscal 2018, ¥25 million in fiscal 2019).
3. [ ] indicates interest on borrowed funds between the Domestic division and the International division.
Gross operating profit for the period
× 100
4. Gross operating profit ratio =Average balance of investment accounts

Sony Financial Holdings Inc. Financial Data Book 202093

■ Sony Bank Financial Data (Non-consolidated)

3-02

Average balances, interests, yields and interest spreads of major investment
and financing accounts

Domestic division

Millions of yen, %

2020

2019
For the years ended March 31,

Investment accounts
Loans
Securities
Call loans
Due from banks
Monetary claims purchased
Financing accounts
Deposits
Call money
Payables under repurchase agreements
Borrowed money

Averagebalance［38,331］2,220,115
1,636,579
175,156

Interest［33］

18,932
17,398
1,429

Yield
0.85%
1.06
0.81

Averagebalance
Interest［30,904］［388］
2,388,493
20,1591,821,573
18,660132,281
1,037

Yield
0.84%
1.02
0.78

̶

̶

̶

̶

̶

̶

348,222
4,269

62
6

0.01
0.16

379,541
4,822

61
10

0.01
0.22

［̶］

2,202,407
1,887,444
149,189

［̶］

2,516
1,856
(63)

0.11

［̶］

［̶］

0.11

0.09
(0.04)

2,360,254
1,984,420
186,998

2,718
1,880
(60)

0.09
(0.04)

̶

̶

̶

̶

̶

̶

186,21988

0.04

210,00085

0.04

Notes: 1. [ ] indicates the average balance and interest of borrowed funds between the Domestic division and the International division, andthe total is presented in net.
2. In the investment accounts, the average balance of non-interest-bearing “due from banks” (¥1,488 million in fiscal 2018, ¥1,548
million in fiscal 2019) is excluded. In the financing accounts, the average balance of funds for investing money held in trust (¥21,087
million in fiscal 2018, ¥22,126 million in fiscal 2019) and the interest expenses on money held in trust (¥24 million in fiscal 2018, ¥25
million in fiscal 2019) are excluded, respectively.

International division

Millions of yen, %

2020

2019
For the years ended March 31,

Investment accounts
Loans
Securities
Call loans
Due from banks
Monetary claims purchased
Financing accounts
Deposits
Call money
Payables under repurchase agreements
Borrowed money

Averagebalance［̶］Interest
［̶］

Yield
2.33%

Averagebalance［̶］Interest
［̶］

Yield
2.37%

0.88
2.39
2.27

597,5888,331
579,158
56

14,18069
14,110
0

0.83
2.43
1.45

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

558,833
8,446
540,06458

13,02774
12,9521

̶̶
［38,331］［33］

469,589
411,987
6,683
12,353

6,136
4,891
151
312

1.18
2.26
2.52

̶

̶

̶

1.30

［30,904］［388］

514,161
436,413
17,39928,908
680

6,914
5,395
329
348
2

1.34
1.23
1.89
1.20
0.31

Note: [ ] indicates the average balance and interest of borrowed funds between the Domestic division and the International division, and thetotal is presented in net.

94

Sony Financial Holdings Inc. Financial Data Book 2020

■ Sony Bank Financial Data (Non-consolidated)

Total

Millions of yen, %

2020

2019
For the years ended March 31,

Averagebalance

Interest

Investment accounts
Loans
Securities
Call loans
Due from banks
Monetary claims purchased
Financing accounts
Deposits
Call money
Payables under repurchase agreements
Borrowed money

2,740,616
1,645,025
715,22058
348,222
4,269
2,633,665
2,299,441
155,872
12,353
186,219

31,926
17,473
14,382
1
62
6
8,619
6,747
88
312
88

Yield
1.16%
1.06
2.01
2.27
0.01
0.16
0.32
0.29
0.05
2.52
0.04

Averagebalance
2,955,177
1,829,904
711,440
56
379,541
4,822
2,843,512
2,420,833
204,397
28,908210,680

Interest
33,95018,72915,148
0
61
10
9,243
7,276
269
348
88

Yield
1.14%
1.02
2.12
1.45
0.01
0.22
0.32
0.30
0.13
1.20
0.04

Note: In the investment accounts, the average balance of non-interest-bearing “due from banks” (¥1,488 million in fiscal 2018, ¥1,548 million
in fiscal 2019) is excluded. In the financing accounts, the average balance of funds for investing money held in trust (¥21,087 million in
fiscal 2018, ¥22,126 million in fiscal 2019) and the interest expenses on money held in trust (¥24 million in fiscal 2018, ¥25 million in
fiscal 2019) are excluded, respectively.

Interest spread

%

2020

2019
For the years ended March 31,

Yield on investment
Yield on financing
Interest spread

3-03

Domestic
division
0.85
0.11
0.73

International
division
2.33
1.30
1.02

Total
1.16
0.32
0.83

Domestic International
division
division
0.84
2.37
0.11
1.34
0.72
1.02

Total
1.14
0.32
0.82

Interest income and interest expenses

Domestic division

Millions of yen

2020

2019

For the years ended March 31,

Interest income
Loans
Securities
Call loans
Due from banks
Monetary claims purchased
Interest expenses
Deposits
Call money
Payables under repurchase agreements
Borrowed money

Increase(decrease)
due tobalance
1,242
913
(207)
̶

17
(9)
226
101
(5)

Increase
Increase(decrease) Increase(decrease) Net increase
due to(decrease) Net increase
due to yield (decrease)balance due to yield (decrease)(1,141)
101
1,435
(208)
1,227
(502)
411
1,966
(705)
1,261
(105)
(312)
(350)
(42)
(392)
̶

̶

̶

̶

̶

(18)
6
(1,034)
(234)
16

(0)
(2)
(807)
(133)
11

5
70
180
95
(15)

(6)
(66)
22
(70)
18

(0)
4
202
24
2

11

(13)

(2)

̶

̶

̶

29

(54)

(24)

̶

̶

̶

Sony Financial Holdings Inc. Financial Data Book 202095

■ Sony Bank Financial Data (Non-consolidated)

International division

Millions of yen

2020

2019

For the years ended March 31,

Interest income
Loans
Securities
Call loans
Due from banks
Monetary claims purchased
Interest expenses
Deposits
Call money
Payables under repurchase agreements
Borrowed money

Increase(decrease)
due tobalance
1,502
4
1,523
(1)
̶
̶

785
372
105
̶
̶

Increase
Increase(decrease) Increase(decrease) Net increase
due to(decrease) Net increase
due to yield (decrease)balance due to yield (decrease)
1,984
3,487
903
248
1,152
(7)
(2)
(1)
(4)
(5)
1,966
3,490
937
220
1,158
0
(1)
(0)
(0)
(0)
̶
̶

̶
̶

̶
̶

̶
̶

̶
̶

951
1,185
45
312

1,737
1,558
150
312

̶

̶

582
289
242
418

194
214
(64)
(381)
2

777
504
178
36
2

̶

Total

Millions of yen

2020

2019

For the years ended March 31,

Interest income
Loans
Securities
Call loans
Due from banks
Monetary claims purchased
Interest expenses
Deposits
Call money
Payables under repurchase agreements
Borrowed money

Increase(decrease)
due tobalance
2,264
918
864
(1)
17
(4)
636
325
(9)
̶

29

Increase
Increase(decrease) Increase(decrease) Net increase
due to(decrease) Net increase
due to yield (decrease)balance due to yield (decrease)
1,317
3,582
2,499
(475)
2,024
(509)
408
1,963
(707)
1,255
2,312
3,177
(76)
842
766
0
(1)
(0)
(0)
(0)
(18)
(0)
5
(6)
(0)
1
(2)
0
3
4
286
923
686
(62)
624
1,098
1,424
356
173
529
170
161
27
153
180
312
312
418
(381)
36
(54)
(24)
11
(11)
(0)

Note: Where the reason for an increase or decrease is overlapping between “due to balance” and “due to yield,” the amount of the increase or
decrease is included in “due to yield.”

3-04

General and administrative expenses
Millions of yen

For the years ended March 31,

Salaries
Employee retirement benefits
Fringe benefit expenses
Depreciation and amortization
Leases on land, buildings and machinery
Maintenance fees
Repairs and utilities
Supplies expenses
Heat, light and water
Travel expenses
Communication expenses
Advertising expenses
Membership fees, donations and social expenses
Outsourcing
Taxes and public dues
Deposit insurance
OthersTotal

96Sony Financial Holdings Inc. Financial Data Book 2020

2019
3,902
147
543
1,299
1,438
1,661
2
235
25
12
773
1,188
24
1,624
1,123
588
1,309
15,901

2020
4,062
161
561
1,600
1,782
1,609
2
189
25
14
790
1,942
18
1,879
1,183
600
1,357
17,782

■ Sony Bank Financial Data (Non-consolidated)

4 Fair Value Information
4-01 Fair value information on securities
In addition to “Securities” on the non-consolidated balance sheets, the figures in the following tables include beneficiary
certificates of investment trust in “Monetary claims purchased.”

Trading securities
Not applicable

Held-to-maturity securities
2019
Not applicable
Millions of yen

2020
As of March 31,

Balance sheet amount

Fair value

Difference

5,417

4,996

(420)

5,417

4,996

(420)

Fair value not exceeding balance sheet amountForeign bonds
Total

Notes: 1. Fair value is based upon the value measured at the fiscal year end.
2. There were no fair values that exceed their non-consolidated balance sheet amount.

Available-for-sale securities

Millions of yen

2020

2019
As of March 31,

Balance sheet
amountAcquisition Unrealized Balance sheet Acquisition Unrealized
cost
gains (losses)
amountcost
gains (losses)

Balance sheet amount exceeding acquisition
cost
128,667

122,5106,156

93,272

88,712

4,559

Japanese government bonds

62,12656,922

5,203

37,94933,895

4,053

Japanese local government bonds

20,04019,689351

19,33019,149180

Japanese corporate bonds

46,50045,899601

35,99235,667325

233,113228,207

4,905

177,243

171,392

5,851

226,698

224,196

2,502

172,332

168,348

3,984

6,414

4,011

2,403

4,910

3,044

1,866

361,780

350,718

11,061

270,515260,104

10,410

5,494

5,496

(2)

43,19043,263

(73)

2,000

2,001

(0)

23,05923,074

(15)

̶

̶

̶

9,273

9,292

(19)

Bonds

OthersForeign bonds
OthersSubtotal
Balance sheet amount not exceedingacquisition cost
Bonds
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
OthersForeign bonds
OthersSubtotal
Total

3,493

3,495

(1)

10,858

10,896(37)

332,059

333,742(1,682)

388,184

404,331(16,147)

328,870

330,552(1,682)372,942

389,083(16,140)

3,189

3,189

̶

15,242

15,248(6)

337,553

339,238(1,684)431,375

447,595(16,147)

699,334

689,957

9,376

701,890

707,700(5,809)Note: Fair value is based upon the value measured at the fiscal year end.

Securities without fair value

As of March 31,

Millions of yen
2019

2020

Balance sheet
amountBalance sheet
amount

2,050

2,050

Stocks of subsidiaries and affiliated companies
Stocks of subsidiaries

Sony Financial Holdings Inc. Financial Data Book 202097

■ Sony Bank Financial Data (Non-consolidated)

4-02 Fair value information on money held in trust
Money held in trust for investment
Not applicable

Money held in trust for held-to-maturity
Not applicable

Other money held in trust

Millions of yen
2019

As of March 31,

Other money held in trust

Balance sheet
amountAcquisition cost

21,937

21,943

Balance sheet amount Balance sheet amountexceeding acquisition
not exceedingcost
acquisition cost

Difference

̶

(6)

(6)
Millions of yen

2020
Balance sheet
amountAcquisition cost

As of March 31,

23,107

Other money held in trust

Difference

23,112

Balance sheet amount Balance sheet amountexceeding acquisition
not exceedingcost
acquisition cost
̶

(5)

(5)

Note: “Balance sheet amount exceeding acquisition cost” and “Balance sheet amount not exceeding acquisition cost” are the breakdown of
the difference.

4-03 Fair value information on derivatives
Interest rate derivatives
Derivatives for which hedge accounting is not applied

Millions of yen
2019

As of March 31,

Type

Notional
amountNotional amountover 1 year

Interest rate swaps
Fixed-rate receivable / Floating-rate payable

21,053

20,9678

8Floating-rate receivable / Fixed-rate payable

23,06422,978

4

4

5,300

5,300

(18)

12

̶

̶

̶

̶

(4)

25

Category
Over-the-countertransactions

Interest swaption
Sold
BoughtFair value

Total

Valuation gains(losses)

Notes: 1. The above transactions are valued at market, and the valuation gains (losses) are recorded in the statements of income.
2. Fair value is calculated using the discounted cash flow and option pricing models.

Derivatives for which hedge accounting is applied

Millions of yen
2019

As of March 31,

MethodType

Hedged item

Notional
amountNotional amountover 1 year

Fair value

Deferred hedge
accounting

Interest rate swaps
Floating-rate receivable /Fixed-rate payable
Deposits

73,00073,000(686)

Fair value hedge
accounting

Interest rate swaps
Floating-rate receivable / Available-for-sale securities
Fixed-rate payable(bonds)222,816

192,342(10,672)

Total(11,358)

Notes: 1. The above table includes derivatives for which deferred hedge accounting is applied in accordance with “Accounting and Auditing
Treatments on Application of Accounting Standard for Financial Instruments in the Banking Industry” (Industry Audit Committee ofJapanese Institute of Certified Public Accountants No. 24, February 13, 2002) and derivatives for which fair value hedge accounting
is applied.
2. Fair value is calculated using the discounted cash flow and other methods.

98Sony Financial Holdings Inc. Financial Data Book 2020

■ Sony Bank Financial Data (Non-consolidated)

Derivatives for which hedge accounting is not applied

Millions of yen

2020

As of March 31,

Type

Notional
amountNotional amountover 1 year

Interest rate swaps
Fixed-rate receivable / Floating-rate payable

15,735

11,23523

23

Floating-rate receivable / Fixed-rate payable

16,944

16,94420

20

18,70018,700

(56)

25

̶

̶

̶

̶

(12)

68

Category
Over-the-countertransactions

Interest swaption
Sold
BoughtFair value

Total

Valuation gains(losses)

Notes: 1. The above transactions are valued at market, and the valuation gains (losses) are recorded in the statements of income.
2. Fair value is calculated using the discounted cash flow and option pricing models.

Derivatives for which hedge accounting is applied

Millions of yen

2020

As of March 31,

Hedged item

Notional
amountNotional amountover 1 year

Deferred hedge
accounting

Interest rate swaps
Floating-rate receivable /Fixed-rate payable
Deposits and loans

260,075

201,539(50)

Fair value hedge
accounting

Interest rate swaps
Floating-rate receivable / Available-for-sale securities
Fixed-rate payable(bonds)223,013

184,346(14,849)

MethodType

Fair value(14,900)

Total

Notes: 1. The above table includes derivatives for which deferred hedge accounting is applied in accordance with “Accounting and Auditing
Treatments on Application of Accounting Standard for Financial Instruments in the Banking Industry” (Industry Audit Committee ofJapanese Institute of Certified Public Accountants No. 24, February 13, 2002) and derivatives for which fair value hedge accounting
is applied.
2. Fair value is calculated using the discounted cash flow and other methods.

Currency derivatives
Derivatives for which hedge accounting is not applied

Millions of yen
2019

As of March 31,

CategoryType

Over-theForward foreign exchanges
counterSoldtransactions
BoughtNotional
amountNotional amountover 1 year

Fair value

Valuation gains(losses)

51,109

̶

(28)

(28)

98,562

̶

8

8

Sold

46,283

̶

954

954

Bought22,230

̶

1,130

1,130

Sold

60

̶

(0)

(0)

Bought

190

̶

1

0

15

̶

(0)

(0)

12,786̶Foreign exchange margin transactions

Currency options

Currency forward contracts
Sold
Bought
Total

(270)

(270)

1,795

1,795

Notes: 1. The above transactions are valued at market, and the valuation gains (losses) are recorded in the statements of income.
2. Fair value is calculated using the discounted cash flow and option pricing models.

Sony Financial Holdings Inc. Financial Data Book 2020

99

■ Sony Bank Financial Data (Non-consolidated)

Derivatives for which hedge accounting is applied

Millions of yen
2019

As of March 31,

Hedged item

Notional
amountNotional amountover 1 year

Currency swaps

Available-for-sale securities(bonds)23,25523,255Currency swaps

Available-for-sale securities(bonds)

24,00010,000

MethodDeferred hedge
accounting
Fair value hedge
accounting

Type

Fair value
(931)
(795)

Total

(1,726)

Notes: 1. The above table includes derivatives for which deferred hedge accounting is applied in accordance with “Accounting and Auditing
Treatments on Application of Accounting Standard for Financial Instruments in the Banking Industry” (Industry Audit Committee ofJapanese Institute of Certified Public Accountants No. 24, February 13, 2002) and derivatives for which fair value hedge accounting
is applied.
2. Fair value is calculated using the discounted cash flow and other methods.

Derivatives for which hedge accounting is not applied

Millions of yen

2020

As of March 31,

CategoryType

Over-theForward foreign exchanges
counterSoldtransactions
BoughtNotional
amountNotional amountover 1 year

Fair value

Valuation gains(losses)

70,091

̶

(123)

(123)

168,750

̶

497

497

Sold

43,373

̶

2,215

2,215

Bought18,706

̶

755

755

459

̶

(4)

(0)

473

̶

6

4

̶

̶

̶

̶

10,652

̶(1,534)(1,534)

1,812

1,815

Foreign exchange margin transactions

Currency options
Sold
BoughtCurrency forward contracts
Sold
BoughtTotal

Notes: 1. The above transactions are valued at market, and the valuation gains (losses) are recorded in the statements of income.
2. Fair value is calculated using the discounted cash flow and option pricing models.

Derivatives for which hedge accounting is applied

Millions of yen

2020

As of March 31,

MethodDeferred hedge
accounting
Fair value hedge
accounting

Hedged item

Notional
amountCurrency swaps

Available-for-sale securities(bonds)

22,753̶(352)

Currency swaps

Available-for-sale securities(bonds)

31,00021,000(3,154)

Type

Total

Notional amountover 1 year

Fair value(3,506)

Notes: 1. The above table includes derivatives for which deferred hedge accounting is applied in accordance with “Accounting and Auditing
Treatments on Application of Accounting Standard for Financial Instruments in the Banking Industry” (Industry Audit Committee ofJapanese Institute of Certified Public Accountants No. 24, February 13, 2002) and derivatives for which fair value hedge accounting
is applied.
2. Fair value is calculated using the discounted cash flow and other methods.

100Sony Financial Holdings Inc. Financial Data Book 2020

■ Sony Bank

Performance Indicators (Non-consolidated)
1 Key Per formance Indicator sMillions of yen
For the years ended March 31,

Ordinary revenues
Ordinary profit
Net income
Gross operating profit
Net operating profit
Real net operating profit
Net core operating profit
Net core operating profit (excluding gains(losses) on surrendered investment trusts)
Common stock
Number of shares issued and outstanding (shares)
Total net assets
Total assets
Deposits
Loans
Securities
Non-consolidated capital adequacy ratio
Dividend payout ratio
Number of employees

2016
34,892
5,857
3,912
21,684
5,797
5,714
5,096

2017
35,105
4,634
3,176
21,121
4,612
4,612
4,214

2018
36,2706,557
4,474
21,421
5,920
5,920
5,654

2019
41,707
8,698
6,025
24,514
8,562
8,626
8,837

2020
45,383
9,589
6,642
27,106
9,332
9,358
9,276

5,096
31,000620,000
77,4282,126,564
1,923,506
1,344,184
620,993
9.89%
50.07%
456

4,214
31,000620,000
81,332
2,424,236
2,112,985
1,539,630
631,2969.75%
50.06%
480

5,654
31,000620,000
85,7292,635,028
2,219,325
1,596,376
674,285
10.45%
50.01%
487

8,837
31,000620,000
87,2792,860,925
2,358,985
1,744,103
696,468
9.58%
50.00%
498

9,276
31,000620,000
77,3383,079,472
2,481,890
1,979,126
703,3528.85%
50.02%
520

Notes: 1. Number of employees refers to full-time employees.
2. The method for measuring credit risk in the calculation of the non-consolidated capital adequacy ratio was changed from theprevious “standard approach” to the “foundation internal ratings-based approach” in fiscal 2017.

2 Status of Operations (Deposits)
2-01 Average and year-end balance of deposits by category
Average balance

Millions of yen

2020

2019
For the years ended March 31,

Floating deposits
Time and saving deposits
Other deposits
Total

Domestic
division
744,333
1,141,975
1,134
1,887,444

International
division
175,610236,31275
411,997

Total
919,944
1,378,287
1,209
2,299,441

Domestic International
division
division
Total
824,053
176,460 1,000,513
1,158,734
259,856 1,418,590
1,632
96
1,729
1,984,420
436,413 2,420,833

Year-end balance

Millions of yen

2020

2019
As of March 31,

Floating deposits
Time and saving deposits
Other deposits
Total

Domestic
division
782,242
1,147,048
1,178
1,930,468

International
division
173,129
255,30482
428,516

Total
955,371
1,402,352
1,260
2,358,985

Domestic International
division
division
Total
868,926
188,963 1,057,890
1,147,175
275,041 1,422,216
1,738
44
1,783
2,017,840
464,049 2,481,890

Note: Deposits (floating deposits and time and saving deposits) of the Domestic division include deposits from the parent company and its
subsidiaries in the amount of ¥56,671 million and ¥66,106 million as of March 31, 2019 and 2020, respectively.

Sony Financial Holdings Inc. Financial Data Book 2020

101

■ Sony Bank Performance Indicators (Non-consolidated)

2-02 Balance of time deposits by remaining period
Millions of yen

As of March 31,

Less than 3 months
3 months or more, less than 6 months
6 months or more, less than 1 year
1 year or more, less than 2 years
2 years or more, less than 3 years
3 years or more
Total

2019

2020

Fixed rate Floating rate
time deposits time deposits
Total̶
344,458
344,458̶
429,750
429,750̶
409,216
409,216
̶
67,37567,375
̶
15,561
15,561
̶
49,53049,530̶
1,315,893
1,315,893

Fixed rate Floating rate
time deposits time deposits
Total̶
354,527
354,527
̶
460,475
460,475
̶
432,734
432,734
̶
39,161
39,161
̶
16,101
16,101
̶
28,76528,765
̶
1,331,765
1,331,765

Note: The above table does not include thrift saving deposits.

3 Status of Operations (Loans)
3-01 Average and year-end balance of loans by category
Average balance

Millions of yen

2020

2019
For the years ended March 31,

Loans on bills
Loans on deeds
Overdrafts
Bills discounted
Total

Domestic International
division
division

Domestic
divisionInternational
division

̶

̶

̶

̶

̶

̶

1,618,016
18,5628,441
4

1,626,458
18,567

1,803,837
17,7358,327
41,812,165
17,739

Total

̶

̶

̶

̶

̶

̶

1,636,579

8,446

1,645,025

1,821,573

8,331

1,829,904

Year-end balance

Millions of yen

2020

2019
As of March 31,

Loans on bills
Loans on deeds
Overdrafts
Bills discounted
Total

Total

Domestic International
division
division

Domestic
divisionInternational
division

̶

̶

̶

̶

̶

̶

1,717,517
18,3088,273
31,725,791
18,312

1,953,514
17,3918,216
2

1,961,731
17,394

Total

Total

̶

̶

̶

̶

̶

̶

1,735,826

8,276

1,744,103

1,970,906

8,219

1,979,1263-02 Balance of loans by remaining period
Millions of yen

2020

2019
As of March 31,

Less than 1 year
Over 1 year, not exceeding 3 years
Over 3 years, not exceeding 5 years
Over 5 years, not exceeding 7 years
Over 7 years, not exceeding 10 years
Over 10 years
No fixed redemption
Total

102

Sony Financial Holdings Inc. Financial Data Book 2020

Fixed
Floating
interest rates interest rates
126
7,045
2,098
17,464
6,010
13,136
10,736
9,139
27,883
16,102
654,128
961,920
̶
18,312700,983
1,043,120

Total
7,171
19,563
19,146
19,87543,985
1,616,048
18,312
1,744,103

Fixed
Floating
interest rates interest rates
Total
193
6,475
6,669
2,108
18,41920,5276,212
6,141
12,354
11,851
8,172
20,024
26,77819,48446,262
679,104 1,176,788 1,855,892
̶
17,394
17,394
726,249 1,252,876 1,979,126

■ Sony Bank Performance Indicators (Non-consolidated)3-03 Balance of loans by collateralMillions of yen

2020

2019

As of March 31,

Pledged securities̶̶

Pledged receivables̶̶

Pledged merchandise̶̶

1,167,547

1,291,532

Pledged real estate̶̶

Subtotal

1,167,547

1,291,532

Guaranteed

307,220394,734

Credit269,335

292,858

Total

1,744,103

1,979,126

OthersBalance of acceptances and guarantees at the end of the period
Not applicable

Customersʼ liabilities for acceptances and guarantees classified by type of collateral
N ot a p p l i c a b l e

3-04 Balance of loans by industry
Millions of yen, %

2020

2019
Balance
1,708,696
35,406
14,912As of March 31,

Individual
Corporation
Manufacturing industries
Construction
Information and telecommunications
Transportation / Mail services
Wholesalers / Retailers
Financial services / Insurance
Real estate / Goods leasing services
Various service
Local government
Total

̶

441
3,057
1,653
1,131
12,60887
1,513
1,744,103

Composition Balance
97.97%
1,952,271
2.03
26,8540.85
11,489
̶

0.02
0.17
0.09
0.06
0.72
0.00
0.08
100.00%Composition
98.64%
1.36
0.58

̶

̶

315
2,051
1,019

0.02
0.10
0.05

̶

̶

10,470

0.53

̶

1,508
1,979,126̶

0.08
100.00%3-05 Loan-deposit ratio: year end and annual average
%

2020

2019
As of March 31, for the years ended March 31,

At the year end
Annual average
Note: Loan-deposit ratio =Domestic
division
89.91
86.70

International
division
1.93
2.05

Total
73.93
71.54

Domestic
division
97.67
91.79

International
division
1.77
1.90

Total
79.74
75.58

Loan balance at year end (annual average)
× 100
Deposit balance at year end (annual average)

Sony Financial Holdings Inc. Financial Data Book 2020103

■ Sony Bank Performance Indicators (Non-consolidated)

3-06 Reserve for possible loan losses: balance at year end and increase (decrease)during the year
Millions of yen

2020

2019

As of March 31, for the years ended March 31,

General reserve for possible loan losses
Specific reserve for possible loan losses
Reserve for possible loan losses for specific foreign countries
Total

Balance atthe end of
the period
480
422

Balance atthe end of
the period
506
339

Increase(Decrease)64
31

Increase(Decrease)
26
(83)

̶

̶

̶

̶

903

96

846

(57)

3-07 Write-off loans
Millions of yen
For the years ended March 31,

2019

2020

0

̶

Total

4 Status of Operations (Securities)
4-01

Average balance of securities under proprietary accounts by category

N ot a p p l i c a b l e

4-02

Balance of securities by category and remaining period
Millions of yen
2019

As of March 31,

Within1 yearMore than
1 year to
3 years

More than
3 years to
5 years

More than
5 years to
7 years

More than
7 years to
10 yearsOver
10 years

Japanese government
bonds

15,032

12,102̶̶

17,941

19,050̶

64,126

Japanese local
government bonds

Unspecified
term

Total

503

19,227

309

̶

̶

̶

̶

20,0406,556

28,725

14,713̶̶̶̶

49,994

Japanese stocks

̶

̶

̶

̶

̶

̶

2,050

2,050

Other securities

94,785145,596

99,351

18,107

17,899179,827

4,687

560,256

94,785145,596

99,351

18,107

17,899179,827

̶

555,568

̶

̶

̶

̶

̶

̶

4,687

4,687

116,877

205,651

114,373

18,10735,840198,878

6,738

696,468

Japanese corporate bonds

Foreign bonds
Others
Total

Millions of yen

2020

As of March 31,

Japanese government
bonds

10,011

21,095

Japanese local
government bonds

6,821Japanese corporate bonds

9,405

Total

̶

̶

11,121

18,780̶

61,00814,550

̶

7,231

̶

̶

̶

28,60332,216

4,732

496

̶

̶

̶

46,850Japanese stocks

̶

̶

̶

̶

̶

̶

2,050

2,050

Other securities

96,645

144,677

80,87817,41635,784

175,289

14,146564,838

96,645

144,677

80,87817,41635,784

175,289

9,993

560,686

̶

̶

̶

̶

̶

̶

4,152

4,152

122,884

212,540

85,611

25,143

46,906

194,069

16,196703,352

Foreign bonds
Others
Total

104

More than More than More than More thanOver
1 year to 3 years to 5 years to 7 years to
Unspecified
10 years 10 years
7 years
5 years
3 yearsterm

Within1 yearSony Financial Holdings Inc. Financial Data Book 2020

■ Sony Bank Performance Indicators (Non-consolidated)

4-03

Average and year-end balance of securities by category

Average balance

Millions of yen

2020

2019
For the years ended March 31,

Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Japanese stocks
Other securities
Foreign bonds
Others
Total

Domestic
division
75,92932,84861,9532,050
2,373International
division
̶
̶
̶
̶

̶

540,064
540,064

2,373
175,156

540,064̶Domestic International
division
division̶
59,467
̶
20,095
̶
48,303
̶
2,050
2,365
579,158̶
579,158̶
2,365
132,281579,158

Total
75,92932,84861,953
2,050
542,438
540,064
2,373
715,220

Year-end balance

Total
59,467
20,09548,303
2,050
581,523
579,158
2,365
711,440

Millions of yen

2020

2019
As of March 31,

Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Japanese stocks
Other securities
Foreign bonds
Others
Total

Domestic
division
64,126
20,04049,9942,050
4,687International
division
̶
̶
̶
̶

̶

555,568
555,568

4,687
140,899555,568

̶Domestic International
division
division̶
61,008
̶
28,603
̶
46,850
̶
2,050
4,152
560,686̶
560,686
̶
4,152
142,666
560,686

Total
64,126
20,04049,9942,050
560,256555,5684,687
696,468

Total
61,00828,603
46,8502,050
564,838
560,686
4,152
703,352

4-04 Securities-deposit ratio: year end and annual average
%

2020

2019
As of March 31, for the years ended March 31,

At the year end
Annual average
Note: Securities-deposit ratio =Domestic
division
7.29
9.28

International
division
129.64131.08

Total
29.52
31.10

Domestic International
division
division
7.07
120.82
6.66
132.70

Total
28.33
29.38

Securities balance at year end (annual average)
× 100
Deposit balance at year end (annual average)

Sony Financial Holdings Inc. Financial Data Book 2020

105

■ Sony Life MCEVMCEV Results for Sony Life as of March 31, 2020
1

MCE V resultsSony Lifeʼs MCEV as of March 31, 2020 was virtually unchanged from the previous year. Factors leading to an increasein value such as new business acquired were largely offset by factors such as the decrease in JPY interest rates anddividend payments to shareholders.
Billions of yen

2

As of March 31,

2019

2020

MCEV

Change1,720.2

1,713.5(6.7)

Adjusted net worth

2,195.7

2,565.8

370.0

Value of existing business(475.5)(852.3)(376.8)Adjusted net wor th
The adjusted net worth as of March 31, 2020 increased ¥370.0 billion, primarily because of the increase in unrealized
gain on held-to-maturity securities caused by a decrease in interest rates. The breakdown is shown in the table below.
Billions of yen
As of March 31,

2019

2020

Adjusted net worth

2,195.7

2,565.8

370.0

Total net assets

513.9

539.5

25.6

Reserve for price fluctuations

50.1

52.7

2.6

Contingency reserve

98.6

107.6

9.0

General reserve for possible loan losses

0.0

0.0

(0.0)

Reinsurance debit for coinsurance-type reinsurance

2.0

2.0

0.0

Change2,030.8

2,419.3

388.4

Unrealized gains or losses on policy-reserve-matching bonds

83.5

141.9

58.4

Unrealized gains or losses on land and buildings

100.9

119.5

18.6

(1.7)

(1.0)

0.7

Unrealized gains or losses on held-to-maturity securities

Unfunded pension liabilities
Intangible fixed assets(26.3)(28.6)(2.2)

Tax effect equivalent of above nine items(654.6)(787.8)(133.2)

(1.4)

0.4

1.8

Valuation gain or loss on subsidiaries and affiliated companies

Billions of yen
As of March 31,

2019

2020

Adjusted net worth

2,195.7

2,565.8

Free surplus

1,001.4

938.1(63.3)

Required capital

1,194.3

1,627.7

433.3

Change370.0

Sony Life sets its required capital as the larger of the amount of Japanese regulatory minimum capital requirement at
the solvency margin ratio of 200% or the amount of capital to cover risks based on an internal model based on
economic value. The required capital as of March 31, 2020 increased primarily because of an increase in the amount ofliabilities on an economic basis caused by a fall in interest rates.

3

Value of existing business
The value of existing business as of March 31, 2020 decreased ¥376.8 billion, primarily due to a fall in interest rates.
The breakdown of the value of existing business is shown in the table below.
Billions of yen
As of March 31,

Value of existing business
Present value of certainty-equivalent profit

106

2019

2020

Change(475.5)(852.3)(376.8)34.2(317.8)(352.1)Time value of options and guarantees(140.8)(125.0)15.7

Frictional costs(23.4)(29.8)(6.3)

Cost of non-hedgeable risks(345.4)(379.5)(34.0)

Sony Financial Holdings Inc. Financial Data Book 2020

■ Sony Life MCEV

4

New business value
The new business value for the fiscal year ended March 31, 2020 decreased ¥24.4 billion, primarily because of thedecrease in interest rates. The breakdown of new business value is as follows:
Billions of yen
For the years ended March 31,

Value of new business
Present value of certainty-equivalent profit

Change91.3

66.9(24.4)

120.2

73.2

(46.9)

Time value of options and guarantees

(7.7)

(7.4)

0.2

Frictional costs

(0.1)

(0.1)

0.0

Cost of non-hedgeable risks(21.6)(21.3)

0.3

0.6

22.6

21.9

Other profits or losses

5

2020

2019

New business margin
The new business margin described below is the ratio of the value of new business to the present value of premiumincome. The present value of premium income is calculated applying the same assumptions as those for the calculationof new business value, and is based on premiums before the deduction of reinsurance premiums. The new businessmargin for the fiscal year ended March 31, 2020 decreased primarily because of the decrease in interest rates.
Billions of yen
For the years ended March 31,

Value of new business
Present value of premium income
New business margin

6

2020

2019

Change91.3

66.9

1,426.2

1,495.2

68.9

6.4%

4.5%

(1.9) points(24.4)

Reconciliation analysis from MCE V at the end of theprior year
The table below shows the reconciliation analysis of MCEV as of March 31, 2020, from MCEV as of March 31, 2019.
Billions of yen

Opening MCEV (MCEV as of March 31, 2019)

Free surplus

Required capital

Value of existing
business

MCEV

1,001.4

1,194.3(475.5)

1,720.2

Opening adjustments(32.2)

̶̶

(32.2)

Adjusted opening MCEV

969.2

1,194.3(475.5)

1,688.0

New business value

21.2

1.4

44.3

66.9

Expected existing business contribution (risk-free rate)

(1.6)

(2.1)

19.5

15.7

Expected existing business contribution (in excess of risk-free rate)

2.3

3.0

13.6

19.0

(0.5)

(43.4)

43.9

̶On new business(57.2)

̶57.2

̶

Experience variances

8.7(15.3)

(2.3)

(8.9)

Assumption changes

7.1

(7.1)

8.5

8.5

Other operating variance

(2.0)

2.0

(0.0)

(0.0)

Transfers from value of existing business and required capital to free surplus

Operating MCEV earnings

35.2(61.6)

127.7

101.3

Economic variances(66.3)

494.9(504.5)(75.8)̶̶̶̶

(31.1)

433.3(376.8)

25.4

Other non-operating varianceTotal MCEV earnings
Closing adjustments
Closing MCEV (MCEV as of March 31, 2020)

̶

̶

̶

̶

938.1

1,627.7(852.3)

1,713.5

Sony Financial Holdings Inc. Financial Data Book 2020

107

■ Sony Life MCEV

7

Sensitivit y analysis
The impact of changing the underlying assumptions on MCEV is as follows:
Billions of yen
Assumption

Change in assumption

MCEV

Change in amount Rate of change

Base

No change

1,713.5−−

Interest rates

50bp decrease

1,675.3(38.1)(2%)

50bp increase

1,723.2

9.7

1%

Swap rates

1,234.5(478.9)(28%)

Stock / Real estate market value

10% decrease

1,687.1(26.4)(2%)

Stock / Real estate implied volatility

25% increase

1,682.1(31.3)(2%)

Interest swaption implied volatility

25% increase

1,694.5(19.0)(1%)

Maintenance expenses

10% decrease

1,742.1

28.6

2%

Lapse and surrender rates

× 0.9

1,661.4(52.1)(3%)

Mortality rates

Death protection
products × 0.95

1,781.8

68.3

4%

Third-sector and annuity
products × 0.95

1,697.4(16.0)(1%)

Morbidity rates

× 0.95

1,786.4

72.8

4%Required capital

Regulatory minimum

1,740.8

27.2

2%

Foreign exchange rates

10% appreciation of JPY

1,684.2(29.3)(2%)

The breakdown of the changes in MCEV into the adjusted net worth and the value of existing business are shown in thetable below. Of items not specified in this table, only the value of existing business has been changed while adjusted
net worth remains the same.
Billions of yen
Assumption

Interest rates

8

Change in assumption

50bp decrease

MCEV

Adjusted net Value of existingworthbusiness(38.1)

1,054.3(1,092.5)

50bp increase

9.7(911.8)921.6

Stock / Real estate market value

10% decrease(26.4)(9.7)(16.6)

Foreign exchange rates

10% appreciation of JPY(29.3)(17.1)(12.1)

Primar y assumptions
Sony Life has used the JGB yields and U.S. Treasury yields as of March 31, 2020 as reference rates for the certaintyequivalent projections.
Sony Life has not added a liquidity premium on the risk-free rate as there are no products which are considered tohave reasonably predictable and illiquid cash flows and would therefore be appropriate to apply a liquidity premium.
Regarding the extrapolation for ultra-long term risk-free rates where there is no market data, an ultimate forward rate
was applied. More specifically, the ultimate forward rate was set at 3.5% and the last liquid point was set at 40 years(30 years for USD) and, based on Smith-Wilson methodology, forward rates on or after 41 years (31 years for USD)
were extrapolated to converge to the ultimate forward rate over 20 years (30 years for USD). These parameters wereset primarily in reference to the discussion on ICS. The reasons for setting the last liquid point at 40 years (30 years for
USD) are as follows:• Government bonds with 40-year maturity (30-year maturity for USD) have high liquidity and observable market data.
• Consistency in valuation between assets and liabilities as Sony Life holds a large amount of government bonds with
30- to 40-year maturity (30-year maturity for USD).

108

Sony Financial Holdings Inc. Financial Data Book 2020

■ Sony Life MCEV

The risk-free rates used in calculation for key terms (on a par-rate basis) are as follows:%
Japanese yen
As of March 31,

2019

U.S. dollar

2020

2019

2020

Term (in years)
1(0.18)(0.15)

2.39

0.16

5

(0.20)(0.12)

2.23

0.38

10

(0.08)

0.03

2.41

0.67

20

0.34

0.31

2.63

1.05

30

0.51

0.42

2.82

1.32

40

0.58

0.44

2.87

1.57

50

0.94

0.83

2.93

1.78

60

1.19

1.10

2.96

1.91

70

1.35

1.27

2.98

1.99

80

1.44

1.37

3.00

2.04

(Data: Ministry of Finance Japan for JGB [extrapolated] and Bloomberg for U.S. Treasury [extrapolated])

Assumptions including mortality and morbidity rates, lapse and surrender rates, and operating expense rates weredeveloped based on best estimates by product as of March 31, 2020. Best-estimate assumptions are developed toreflect past and current experiences as well as expected experiences in the future. Expected future changes inassumptions should be reflected only when they are supported by sufficient reasons. Except for a deteriorating trend inmorbidity rates, no other expected future changes are assumed in the best-estimate assumptions applied.

9

Opinion of Outside Specialist
Sony Life requested Milliman, Inc., an external actuarial consulting firm with expert knowledge in the area of MCEV
valuations, to review the methodology, assumptions and calculations, and obtained an opinion from this firm. Pleaserefer to Sony Lifeʼs press release “Disclosure of Market Consistent Embedded Value as of March 31, 2020” (https://www.sonyfh.co.jp/en/news/article/200609_01.pdf) for details.

10 Risk Amount Based on Economic Value (Af ter Ta x)
Sony Life has been disclosing the risk amount based on economic value since the end of March 2012 in an effort toprovide a clearer picture of its financial soundness based on economic value. 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, market-related risk and others. Sony Lifeʼs risk amount based on economic value as of March
31, 2020 was ¥805.2 billion, an increase of ¥62.8 billion year on year, primarily due to an increase in insurance risk
arising from a drop in interest rates. The breakdown of the risk amount is as follows:
Billions of yen
As of March 31,

2020

2019

ChangeInsurance risk

547.3

607.6

60.2

Market-related risk

332.5

334.9

2.3

Interest rate risk

202.1

178.5

(23.5)

Operational risk

33.4

40.3

6.9

Counterparty risk

3.0

3.8

0.7

Variance effect(174.0)(181.5)

(7.5)

742.3

805.2

62.8

Risk amount based on economic value

Notes: 1. The risk amount based on economic value is calibrated at VaR [99.5%] over one year and based on the internal model.
2. Interest rate risk excludes the variance effect within market-related risk.

Sony Financial Holdings Inc. Financial Data Book 2020

109

■ Sony Life MCEV

11 Glossary of MCEV-related Terminology (in Alphabetical Order)

B

P

Best-estimate assumption

Present value of certainty-equivalent profit

The assumption that is most likely to occur in the future.

C
Cost of non-hedgeable risk
The present value of the cost to hold required capital to cover
future non-hedgeable risks. As risks regarding the asymmetricnature of cash flows not reflected in the present value ofcertainty-equivalent profit are fully reflected in the time value of
options and guarantees, Sony Life has reflected the following
in this cost: allowance for uncertainty of non-economic
assumptions and the portion of economic assumptions
considered non-hedgeable with respect to the cost of nonhedgeable risks.

F
Free surplus
The portion of adjusted net worth other than the required
capital.

Frictional costs
The present value of investment costs and taxes on assetsbacking the required capital at each point of time in the future.

I

R
Required capital
The MCEV Principles define required capital as the capital thatis needed in excess of statutory policy reserves (excluding
contingency reserves). It is determined as the larger of thesolvency capital to meet the statutory required minimum levelor the capital necessary to meet internal objectives or toachieve the companyʼs targeted credit rating.
The required capital of Sony Life is set as the larger of theamount of capital corresponding to the solvency margin ratioof 200% or the amount of capital to cover risks based on theinternal model on an economic value basis.

Risk-free rate
The reference rate defined in the MCEV Principles. The MCEV
Principles state that it should be the swap rate of the currencyof cash flows.

U
Ultimate forward rate

ICS (Insurance Capital Standard)
The capital standard for internationally active insurance groups(IAIGs) being developed by the International Association of
Insurance Supervisors (IAIS).

Implied volatility
The expected rate of future variability embedded in current
market option prices.

N
Non-hedgeable non-financial risk
A non-financial risk such that deep and liquid capital markets
do not exist to hedge such risk.

Non-hedgeable risk
Non-hedgeable risk is composed of non-hedgeable financial
risk and non-hedgeable non-financial risk.

O
Options and guarantees
The following are some features of options and guarantees:
・Policy cash flow would be changed by exercising options
granted to the policyholder. An example of such features isthe exercise of the surrender option.
・It includes guarantee of benefits or policyholder values. An
example is guaranteed minimum death benefits for variable
life insurance.

110

Present value of certainty-equivalent profit is the present valueof profit based on the future cash flows generated from thecovered business.

Sony Financial Holdings Inc. Financial Data Book 2020

The level of forward rate to which future forward rates are
assumed to ultimately converge. It is generally determined in amacroeconomic approach.

Sony Financial Group