2019

Financial Data Book
April 1, 2018

March 31, 2019

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
10 Significant Basic Items for the Preparation of
the Consolidated Financial Statements
13 Notes to the Consolidated Financial Statements

80
82
83
85
87
87
87
90
92

Sony Life Financial Data (Non-consolidated)■ Sony Assurance Performance Indicators

30
32
35
37
40
40
40
45

93
94
96
98

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. Accounting Indicators
4. Reconciliation to Core Profit andNon-consolidated Ordinary Profit
47 5. Fair Value Information on Securities(General Account)
52 6. Fair Value Information on Securities(Company Total)

Sony Life Performance Indicators (Non-consolidated)
58
59
65
66
74
75
75
77
78
79
79

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

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.

1. Principal Indicators of Operating Performance
2. Underwriting Performance
3. Asset Management
4. Non-consolidated Solvency Margin Ratio■ Sony Bank Financial Data (Consolidated)
100
101
101
102
104

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)
105
107
108
111
111
111
115

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)
119
119
120
122

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

MCEV Results for Sony Life
124 MCEV Results for Sony Life as of March 31, 2019

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

2019
Annual Report

April 1, 2018–March 31, 2019005_0344701371908.indd

2

Annual Report

2019/08/22

17:02:54

https://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 2017 and fiscal 2018 represent the fiscal years ended March
31, 2018 and 2019, 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
Total 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

2015

2016

2017

2018

2019

1,352,325
90,062
54,41990,707550,672
9,545,868
1,262.94
125.101,362,044
71,10343,355
71,105604,377
10,352,114
1,386.32
99.67

425,656(445,431)(13,087)
207,4228,448

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

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
11,055̶̶

Note: Diluted net income per share for the years ended March 31, 2015 and 2016 is not shown because there are no dilutive shares.

For the years ended March 31,
Sony Lifeʼs adjusted ROESony Lifeʼs core ROEVSony Assuranceʼs adjusted ROESony Bank ʼs ROE
Consolidated adjusted ROE

%

2019

2015

2016

2017

2018

9.6

̶

̶

̶

̶

14.2
6.0

5.0
13.3
5.0

3.6
14.4
4.1

5.9
16.1
5.5

6.4
15.2
7.3

9.5

5.2

3.9

6.1

6.7

̶

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 for fiscal 2018
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 Lifeʼs adjusted ROE (used for calculating consolidated adjusted ROE up to fiscal 2014)
The amount of increase in market consistent embedded value (MCEV)* during the fiscal year + Dividends paid
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 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 20191

SFH Consolidated Financial Statements

Consolidated Balance Sheets
Sony Financial Holdings Inc.
As of March 31, 2018 and 2019

Millions of yen

2018

2019

Cash and due from banks

327,633

415,894

Call loans and bills bought

65,50093,700

Monetary claims purchased

5,378

4,916

291,582

291,324

Securities

9,581,206

10,373,188

Loans

1,785,877

1,942,546

106,051

104,128

Land

63,106

63,106

Buildings

32,46830,899Leased assets

6,074

6,536

5

77

4,397

3,508

35,68443,909Software35,05943,327

Goodwill

583

551

Leased assets0̶

Other intangible fixed assets

40

30

Due from reinsurers

934

1,341

Foreign exchanges

9,346

8,471

168,736

159,361

Net defined benefit asset

3,426

3,476

Deferred tax assets

21,242

27,556

Reserve for possible loan losses(1,152)(1,602)

12,401,446

13,468,215

AssetsMoney held in trust

Tangible fixed assets

Construction in progress
Other tangible fixed assets
Intangible fixed assets

Other assets

Total Assets

2

Sony Financial Holdings Inc. Financial Data Book 2019

SFH Consolidated Financial Statements

Millions of yen

2018

2019

8,763,349

9,479,071

Liabilities
Policy reserves and others

74,71278,285

8,683,153

9,396,241

5,484

4,544

Due to agencies

1,873

2,073

Due to reinsurers

5,563

5,769

Reserve for outstanding claims
Policy reserves
Reserve for policyholdersʼ dividends

2,159,246

2,302,313

Call money and bills sold

96,000130,611

Borrowed money

173,944

203,871228

244

Deposits

Foreign exchanges
Bonds payable

20,00020,000

Other liabilities

470,501

578,477

Reserve for employeesʼ bonuses

3,906

4,377

Net defined benefit liability

33,17934,081

Reserve under the special laws

48,13550,343

Reserve for price fluctuations

48,13550,343

Deferred tax liabilities
Deferred tax liabilities on land revaluation
Total Liabilities

0

24

109

109

11,776,039

12,811,368

Net Assets
Shareholdersʼ equity
Common stock

19,927

19,963

Capital surplus

191,157

191,193

Retained earnings

283,911319,886

(55)

(55)

494,941

530,987

133,991

128,800(902)(1,077)

Land revaluation, net of taxes(2,439)(2,439)Remeasurements of defined benefit plans, net of taxes(1,929)(1,470)128,719

123,81297

149

Treasury stock
Total shareholdersʼ equity
Accumulated other comprehensive income
Net unrealized gains (losses) on available-for-sale securities, net of taxes
Net deferred gains (losses) on hedging instruments, net of taxes

Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total Net Assets
Total Liabilities and Net Assets

1,648

1,896

625,406

656,846

12,401,446

13,468,215

Sony Financial Holdings Inc. Financial Data Book 20193

SFH Consolidated Financial Statements

Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Sony Financial Holdings Inc.
For the years ended March 31, 2018 and 2019(1) Consolidated Statements of Income

2018

2019

Ordinary Revenues

1,503,630

1,629,182

1,347,762

1,461,632

1,057,411

1,134,048

1,054,867

1,130,676

2,544

3,372

242,703

278,950

157,276

166,953

4,490

4,490

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

2̶

Gains on sale of securities

0

6,107

Gains on redemption of securities

1̶Foreign exchange gains, net

̶13,455

Other investment income
Gains on separate accounts, net

Other ordinary income1̶

80,931

87,94347,646

48,633110,091

115,101

Underwriting income

108,316

113,173

Net premiums written

108,253

113,101

62

72

1,731

1,857

1,324

1,372

Gains on sale of securities

470

557

Transfer to interest and dividends on deposits of premiums

(62)

(72)

Ordinary Revenues from the Non-life Insurance Business

Interest and dividends on deposits of premiums

Investment income
Interest income and dividends

Other ordinary income
Ordinary Revenues from the Banking Business
Interest income

43

69

39,71245,76628,34431,926

Interest income on loans

17,064

17,473

Interest income and dividends on securities

11,204

14,382

Interest income on call loans and bills bought

2

1Interest income on deposits with banks

63

62

9

7

Fees and commissions

6,751

9,398

Other operating income

3,823

3,926

3,456

3,599

Other 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 2019

366

326

794

515

6,064

6,681

6,064

6,681

SFH Consolidated Financial Statements

Millions of yen

2018

2019

1,436,787

1,535,325

1,296,417

1,386,074

436,538

457,252

Insurance claims

92,342

92,997

Annuity payments

12,566

13,489Insurance benefits

119,294

131,824

Surrender payments

199,263

204,351

3,314

3,659

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

9,756

10,929638,343704,780

2,211

2,433

636,131702,34600Investment expenses

32,88924,650Interest expenses

151

1,604

̶

126

Losses on trading securities, net
Losses on sale of securities

034

Losses on valuation of securities

̶

4,026

Losses on redemption of securities

2̶

Losses on derivatives, net

11,403

13,925

Foreign exchange losses, net

15,280̶Provision for reserve for possible loan losses

23

329

Depreciation of real estate for rent and others

1,680

1,599

Other investment expenses

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

4,346

3,003

139,420

146,776

49,226

52,614

102,798

107,41373,94377,925Net losses paid

52,48256,608Loss adjustment expenses

8,067

8,220

Net commission and brokerage fees

1,295

1,214

Provision for reserve for outstanding losses and claims

1,194

1,139

Provision for underwriting reserves

10,903

10,7412

1

Losses on sale of securities

̶0

Other investment expenses

2

1

28,84829,4824

4

Investment expenses

Operating, general and administrative expenses
Other ordinary expenses

Sony Financial Holdings Inc. Financial Data Book 20195

SFH Consolidated Financial Statements

Millions of yen

Consolidated Statements of Income (Continued)
Ordinary Expenses from the 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
Extraordinary Losses
Losses on disposal of fixed assets
Impairment losses
Provision for reserve under the special laws
Provision for reserve for price fluctuations
OthersProvision for Reserve for Policyholdersʼ Dividends
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

2019

2018
30,428
7,656
5,320
(73)
̶

0
40
2,360
8
4,676
105
17,733
257
7,141
7,141
66,843
13,25813,258
2,180
187
2
1,953
1,953

34,135
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
2,367
92
67
2,207
2,207

36

̶

3,271

2,146
89,34331,871(4,853)27,01862,325250
62,07474,65029,008(6,344)
22,664
51,98590
51,895

Millions of yen(2) Consolidated Statements of Comprehensive Income

2019

2018
51,98562,325Net unrealized gains (losses) on available-for-sale securities, net of taxes(857)

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

251

Remeasurements of defined benefit plans, net of taxes

827(5,215)
(174)
456
23
(4,909)57,415

ProfitOther Comprehensive Income

Share of other comprehensive income of entities 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 2019

̶

221
52,207
52,11691

57,167248

SFH Consolidated Financial Statements

Consolidated Statements of Changes in Net Assets
Sony Financial Holdings Inc.
For the years ended March 31, 2018 and 2019

Millions of yen

2018
Shareholdersʼ equity

Balance at the beginning of
the period
Changes during the period
Issuance of new shares
Dividends from surplus
Profit attributable toowners of the parent
Disposal of treasury shares
Transfer of loss on
disposal of treasury shares
Reversal of land revaluation
Adjustments due to changeof scope of consolidation
Change in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes of items otherthan shareholdersʼ equity
Total changes during the period
Balance at the end of the period

Total
Treasury shareholdersʼ
equitystock

Commonstock

CapitalsurplusRetainedearnings

19,900195,277

255,062(81)

470,157

27

27

̶

̶

̶

̶

(23,922)̶

55(23,922)̶̶

51,895

̶

̶

(5)

̶

26

̶

5

̶

̶

(5)
973

̶

̶

̶

973

̶

̶

(92)

̶

(92)

̶

(4,147)̶̶

(4,147)51,895
21

̶

̶

̶

̶

̶

27
19,927(4,119)191,157

28,849283,91126(55)

24,784494,941

Millions of yen

2018
Accumulated other comprehensive income

Balance at the beginning of
the period
Changes during the period
Issuance of new shares
Dividends from surplus
Profit attributable toowners of the parent
Disposal of treasury shares
Transfer of loss on
disposal of treasury shares
Reversal of land revaluation
Adjustments due to changeof scope of consolidation
Change in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes of items otherthan shareholdersʼ equity
Total changes during the period
Balance at the end of the period

Net
Remeasureunrealized Net deferredTotal
ments ofgains (losses)
gains
accumulated
definedon available- (losses) on
Land
Subscription
Nonother
benefitfor- salehedging
controllingsecurities, instruments, revaluation, plans, net of comprehensive rights tosharesinterests
incometaxes
net of taxes net of taxes net of taxes

Total net
assets

134,849(1,154)(1,465)(2,756)

129,47249

1,460

601,139

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

55
(23,922)

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

973

̶

̶

̶

̶

̶

̶

̶

(92)

̶

̶

̶

̶

̶

̶

̶

(4,147)

(857)
(857)
133,991

251
251
(902)

(973)
(973)
(2,439)827
827(1,929)

(752)
(752)
128,719

48
48
97

187
187
1,648

(516)
24,267625,406

51,89521

Sony Financial Holdings Inc. Financial Data Book 20197

SFH Consolidated Financial Statements

Consolidated Statements of Changes in Net Assets (Continued)

Millions of yen

2019
Shareholdersʼ equity
Commonstock

Capitalsurplus

Total
Retained Treasury shareholdersʼearnings
stock
equity19,927

191,157

283,911(55)

Issuance of new shares

35

35

̶

̶

71

Dividends from surplus̶̶

(26,099)

̶

(26,099)

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
gains (losses)
ments ofaccumulated
on available- (losses) on
definedSubscription
Nonother
hedgingfor- saleLandbenefitsecurities, instruments, revaluation, plans, net of comprehensive rights to controlling Total net
assetssharesinterests
incomenet of taxes net of taxes net of taxes
taxes
Balance at the beginning of
the period

133,991(902)(2,439)(1,929)128,719

97

1,648

625,406

Issuance of new shares

̶

̶

̶

̶

̶

̶

̶

71

Dividends from surplus

̶

̶

̶

̶

̶

̶

̶

(26,099)

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

Changes during the period

8Sony Financial Holdings Inc. Financial Data Book 2019

SFH Consolidated Financial Statements

Consolidated Statements of Cash Flows
Sony Financial Holdings Inc.
For the years ended March 31, 2018 and 2019

Millions of yen

2018

2019

Cash flows from operating activities
Income before income taxes
74,65089,343
Depreciation of real estate for rent and others
1,680
1,599
Depreciation and amortization
11,828
11,297
Impairment losses
267
Amortization of goodwill
32
32
Increase (decrease) in reserve for outstanding claims
3,405
3,573
Increase (decrease) in policy reserve
647,035
713,088
Interest portion of reserve for policyholdersʼ dividends
00Provision for (reversal of) reserve for policyholdersʼ dividends
3,271
2,146
Increase (decrease) in reserve for possible loan losses
(140)
449
Increase (decrease) in net defined benefit liability
2,363
1,630
̶
Increase (decrease) in reserve for directorsʼ retirement benefits(176)
Increase (decrease) in reserve for price fluctuations
1,953
2,207
Interest income and dividends(186,943)(200,253)(Gains) losses on securities(80,057)(94,790)
Interest expenses
8,327
10,698Losses (gains) on derivatives
11,403
13,925
Exchange (gains) losses
23,489(17,258)(Gains) losses on disposal of tangible fixed assets(13,283)78
Equity in (gains) losses of affiliates
2,338
1,748
Net (increase) decrease in loans(56,745)(147,727)
Net increase (decrease) in deposits
87,987143,031
Net increase (decrease) in borrowed money (excluding subordinated borrowings)
80,00030,000Net increase (decrease) in call money and bills sold
26,00054,902
Net (increase) decrease in call loans and bills bought(4,805)461
Net (increase) decrease in foreign exchange (assets)(2,077)874
Net increase (decrease) in foreign exchange (liabilities)
119
16
Others, net
15,506
21,467
Subtotal
657,168
642,611
Interest and dividends received
197,007205,869
Interest paid
(8,484)(10,221)
Policyholdersʼ dividends paid
(3,517)(3,086)
Income taxes paid
(22,451)(32,251)
Net cash provided by (used in) operating activities
819,721
802,921
Cash flows from investing activities̶
Net (increase) decrease in deposits
5
Investments in money held in trust(101)(1,044)
Proceeds from money held in trust
6,532
4,522
Purchases of securities(1,104,737)(1,219,208)
Proceeds from sale and redemption of securities
427,925
526,015
Investments in loans(60,315)(63,716)
Collections of loans
28,761
30,341
Net gains (losses) from the settlement of derivative financial instruments(22,997)
7,389
Net increase (decrease) in collateral for securities lending transactions(6,719)27,166
Others, net
32,55348,264
Total of net cash provided by (used in) investment transactions(699,092)(640,270)
Total of net cash provided by (used in) operating activities and investment transactions
120,629
162,651
Purchases of tangible fixed assets(2,049)(1,255)
Proceeds from sales of tangible fixed assets
36,700
1
Purchases of intangible fixed assets(12,481)(17,794)
Purchase of securities of a non-consolidated subsidiary
(339)
(50)
Purchase of securities of affiliates(3,450)(300)
Others, net
(132)
(147)
Net cash provided by (used in) investing activities(680,845)(659,815)
Cash flows from financing activities
Proceeds from debt borrowing
5,266
4,640
Repayments of debt
(5,133)(4,712)
Cash dividends paid
(23,921)(26,095)̶Proceeds from issuance of bonds
19,938̶
Payments for redemption of bonds(10,000)
̶Payments from changes in ownership interests in subsidiaries that do not result in change in scope of consolidation(171)
Others, net
(474)
(476)
Net cash provided by (used in) financing activities(14,496)(26,645)
Effect of exchange rate changes on cash and cash equivalents(2)0
Net increase (decrease) in cash and cash equivalents
124,377
116,461̶
Increase (decrease) in cash and cash equivalents resulting from change of scope of consolidation
373
Cash and cash equivalents at the beginning of the period
268,381393,133
Cash and cash equivalents at the end of the period
393,133
509,594
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 20199

SFH Consolidated Financial Statements

Significant Basic Items for the Preparation of the Consolidated Financial Statements(For the year ended March 31, 2019)

1 Principles of Consolidation(1) Scope of consolidation

Consolidated subsidiaries: 10 companies
Company names
Sony Life Insurance Co., Ltd.
Sony Assurance Inc.
Sony Bank Inc.
Sony Payment Services Inc.
SmartLink Network Hong Kong Limited
Sony Lifecare Inc.
Lifecare Design Inc.
Proud Life Inc.
Sony Financial Ventures Inc.
SFV · GB L.P.

Non-consolidated subsidiaries:
There are no main non-consolidated subsidiaries. Non-consolidated subsidiaries are excluded from the scope of consolidation forthe current year because they are immaterial in light of the total assets, ordinary revenues, profit or loss (amounts equivalent to theGroupʼs interests in these companies), retained earnings (amounts equivalent to the Groupʼs interests in these companies) andaccumulated other comprehensive income (amounts equivalent to the Groupʼs interests in these companies) and their exclusionfrom the scope of consolidation does not hinder a rational judgment of the Sony Financial Groupʼs financial position and results ofoperations.
Change in the scope of consolidation:
Sony Financial Ventures Inc. and SFV · GB L.P., companies in the Venture Capital Business, were newly established and areincluded in the scope of consolidation from the fiscal year ended March 31, 2019. The business performance of both companies is
included under “Other” in consolidated statements of income.

(2) Application of the equity method

Affiliates accounted for by the equity method: 2 companies
Company names
AEGON Sony Life Insurance Co., Ltd.
SA Reinsurance Ltd.

Non-consolidated subsidiaries and affiliates that are not accounted for by the equity method:
There are no main non-consolidated subsidiaries or affiliates. Non-consolidated subsidiaries and affiliates are not accounted for by
the equity method because they are immaterial in light of the profit or loss (amounts equivalent to the Groupʼs interests in thesecompanies) and retained earnings (amounts equivalent to the Groupʼs interests in these companies) and their exclusion does nothinder a rational judgment of the Sony Financial Groupʼs financial position and results of operations.

(3) Fiscal year-end of consolidated subsidiaries

Fiscal year-end of all consolidated subsidiaries is March 31, the same date as the consolidated financial statements of SFH.

(4) Amortization of goodwill

Goodwill is equally amortized using the straight-line method over a period of up to 20 years.

2 Note on Going Concerns
There is no related information to be reported.

10Sony Financial Holdings Inc. Financial Data Book 2019

SFH Consolidated Financial Statements

3 Summary of Significant Accounting Policies(1) Securities

Securities, including monetary claims purchased which are equivalent to securities, and securities managed as assets of money
held in trust, are stated in the following manner: Securities held for trading purposes (“trading securities”) are stated at fair value withunrealized gains and losses charged to income. The cost of such securities sold is determined by the moving-average method.
Held-to-maturity securities and policy-reserve-matching bonds held in accordance with the “Temporary Treatment of Accounting
and Auditing concerning Policy-Reserve-Matching Bonds in the Insurance Industry” (The Japanese Institute of Certified Public
Accounts Industry Audit Committee Report No. 21, issued on November 16, 2000; hereinafter “the Industry Audit Committee
Report No. 21”) are stated at amortized cost (straight-line method) using the moving-average method. Available-for-sale securities
whose fair values are readily determinable are stated at fair value in the consolidated balance sheets based on market prices
prevailing at each balance sheet date, with unrealized gains (losses), net of taxes, included in net assets and acquisition costs
calculated using the moving-average method. Available-for-sale securities whose fair values are deemed extremely difficult todetermine are stated at acquisition cost based on the moving-average method.
Net unrealized gains (losses) on available-for-sale securities, net of taxes, are recorded as a separate component of net assets.
The overview of risk management policies of policy-reserve-matching bonds is as follows:
Among the bonds corresponding to sub-segments (according to insurance class, years to maturity, etc.) for individual life insurance
and individual annuity sold by domestic life insurance subsidiaries, SFH records those held with the purpose of controlling theduration of insurance liabilities as policy-reserve-matching bonds, in accordance with the Industry Audit Committee Report No. 21.

(2) Derivative financial instruments

Derivative financial instruments are stated at fair value, with changes in fair value included in income for the period in which theyarise, except for derivatives that are designated by SFH and its consolidated subsidiaries (the “Companies”) as “hedging instruments.”(3) Tangible fixed assets (excluding leased assets)

All tangible fixed assets, including real estate for lease, are initially recorded at cost. Subsequent expenses related to asset improvements are capitalized or are recognized as a separate asset, as appropriate, only when it is probable that future economic benefits
associated with the item will flow to the Companies and the cost of the item can be measured reliably.
All other repairs and maintenance charges are charged to income when incurred.
Depreciation is computed by the straight-line method over the estimated useful lives of the assets as follows:• Buildings: 3 to 50 years• Other tangible fixed assets: 2 to 20 years(4) Intangible fixed assets (excluding leased assets)

Intangible fixed assets are amortized using the straight-line method. Software for internal use is amortized using the straight-line
method generally over 5 years, its estimated useful life.

(5) Leased assets

All leased assets with respect to non-ownership-transfer finance leases are amortized by the straight-line method over the leaseterm, without any residual value.

(6) Reserve for possible loan losses

The reserve for possible loan losses is provided as follows for losses from bad debts mainly in accordance with self-assessment
guidelines and write-off and reserve guidelines.
With respect to receivables such as loans to borrowers subject to bankruptcy, court-guided rehabilitation or similar legal orformal proceedings (the “Bankrupt Borrowers”), loans to borrowers that are substantially in the same condition as the Bankrupt
Borrowers (the “Substantially Bankrupt Borrowers”) and money on deposits whose market value declined significantly, the Companies provide a reserve in the amount expected to be uncollectible after deducting amounts expected to be collectible from collateral, guarantees and other means. For loans to borrowers that are not yet bankrupt but are highly likely to be bankrupt in the future(the “potentially bankrupt borrowers”), the Companies provide a reserve in the amount deemed necessary by comprehensively
considering the borrowersʼ solvency of the remaining amount after deducting amounts expected to be collectible from collateral,guarantees and other means. For other loans, the Companies provide a reserve in the amount calculated by multiplying the loans
by a historical loan loss ratio determined over certain periods.
All loans are subject to asset assessment by the related operational departments in accordance with self-assessment guidelines, and the assessment results are reviewed by the departments responsible for asset inspection that are independent from theoperational departments. The amount of reserve is provided based upon the above results.

(7) Reserve for employeesʼ bonuses

The reserve for employeesʼ bonuses is provided for the estimated amount of bonuses the Companies are required to pay forservices provided during the current fiscal year.

(8) Reserve for price fluctuations

Pursuant to requirements under Article 115 of the Insurance Business Act of Japan, the reserve for price fluctuations is provided forprice fluctuations primarily related to stocks, bonds and foreign currency-denominated assets that are exposed to losses due tomarket price fluctuations. This reserve is only used to reduce losses arising from price fluctuations on those assets.

Sony Financial Holdings Inc. Financial Data Book 201911

SFH Consolidated Financial Statements(9) Accounting for retirement benefits

1) Method of attributing projected retirement benefits
In the calculation of retirement benefit obligations, the Companies mainly apply the benefit formula basis in attributing projected
retirement benefits to the periods until the end of the current fiscal year.
2) Amortization method of prior service cost and net actuarial gain or loss
Unrecognized prior service cost is amortized using the straight-line method within the employeesʼ average remaining service period
at incurrence. Unrecognized net actuarial gain or loss is amortized using the straight-line method over 7 to 16 years within theemployeesʼ average remaining service period, commencing from the fiscal year immediately following incurrence.
3) Adoption of a simplified method at small enterprises, etc.
For calculating net retirement benefit liabilities and retirement benefit expenses, the parent company and some consolidated
subsidiaries apply a simplified method that treats amounts required for voluntary resignation at fiscal year-end as retirement benefit
obligations.

(10) Translation of foreign assets or liabilities

Assets and liabilities denominated in foreign currencies are translated into Japanese yen at the foreign exchange rates in effect ateach balance sheet date, whereas components of net assets denominated in foreign currencies are translated at historical rates.
The current yearʼs profit and loss accounts are translated into yen using the average exchange rate for the fiscal year.

(11) Hedge accounting

The banking subsidiary applies either deferred hedge accounting or fair value hedge accounting to its transactions for hedging
interest rate risks on financial assets and liabilities. With regard to hedging that offsets fluctuating interest rates on fixed-rate loans,the subsidiary identifies the hedged items that are grouped on the basis of a certain period of their remaining maturity and designates interest rate swaps as a hedging instrument, in accordance with “Accounting and Auditing Treatments on Application of
Accounting Standard for Financial Instruments in the Banking Industry” (Industry Audit Committee of the Japanese Institute ofCertified Public Accountants (the “Industry Audit Committee”) Statement No. 24, February 13, 2002). With regard to hedging thatfixes the cash flow of a foretasted transaction of a short-term fixed-rate deposit, the subsidiary identifies the hedged items that aregrouped on the basis of a certain period of their interest rate revision and designates interest rate swaps as a hedging instrument,in accordance with the Industry Audit Committee, Statement No. 24. With regard to hedging that offsets fluctuations in the fairvalue of fixed-rate bonds that are classified as available-for-sale securities, the subsidiary identifies the hedged items individuallyand designates interest rate swaps and others as a hedging instrument. With regard to hedging that offsets exchange rate fluctuations of securities denominated in foreign currencies, the subsidiary identifies the hedged items individually and designates currency
swaps as a hedging instrument. The above-mentioned hedging instruments are designated with almost identical significant terms
and conditions for both the hedging items and the hedged instruments. Accordingly, such hedges are considered highly effective,
allowing the banking subsidiary to ensure hedging effectiveness.

(12) Cash and cash equivalents in the Consolidated Statements of Cash Flows

Cash equivalents consist of highly liquid investments without significant market risks, such as demand deposits and short-term
investments with an original maturity of 3 months or less.

(13) Accounting for consumption taxes

National and local consumption taxes (the “consumption taxes”) received and paid by the Companies, excluding loss adjustment
expenses and operating, general and administrative expenses of SFHʼs non-life insurance subsidiary, are not included in income
and expenses. Under the Consumption Tax Act of Japan, the consumption taxes paid on property and equipment are not deductible from the consumption taxes received; they are recorded as “other assets” and amortized on a straight-line basis over 5 years.
Other non-deductible consumption taxes are charged to income as incurred.

(14) Policy reserves

Pursuant to Article 116 of the Insurance Business Act of Japan, SFHʼs life insurance subsidiary maintains a policy reserve for thefulfillment of future obligations under life insurance contracts. The policy reserve is established by the net level premium reserve
method, which assumes a constant or level amount of net insurance premiums over the term of the relevant policy when calculating the amount of the reserve required to fund all future policy claims. The net insurance premium is a portion of the premium
covering insurance underwriting risk, which is estimated based on factors such as mortality rates, investment yield, surrender rates
and other factors. The net level premium reserve for individual insurance contracts underwritten from fiscal 1996 is calculated usingmortality and interest rates set by the Financial Services Agency of Japan as standard policy reserve. Additionally, the net level
premium reserve for individual insurance contracts underwritten before fiscal 1996 is calculated using mortality and interest rates
approved by the supervisor of insurance business in Japan.

12Sony Financial Holdings Inc. Financial Data Book 2019

SFH Consolidated Financial Statements

Notes to the Consolidated Financial Statements(For the year ended March 31, 2019)

1 Notes to the Consolidated Balance Sheets

1. Securities with a book value of ¥439,070 million and loans of ¥412,559 million were pledged as collateral for the ¥331,055 millionof collateral for securities lending transactions, ¥49,000 million of call money and bills sold, the ¥200,000 million of borrowed money
and payables under repurchase agreements of ¥101,764 million at March 31, 2019. In addition to the assets described above,securities with a book value of ¥10,829 million, cash collateral paid for financial instruments of ¥25,558 million and initial margins of
futures markets of ¥3,279 million were pledged as collateral for cash settlements, variation margins of futures markets and certain
other purposes at March 31, 2019.

2. The consolidated balance sheet amount of securities loaned for consumption under the loan agreement was ¥259,569 million.
3. Securities include shares in non-consolidated subsidiaries and affiliates worth ¥11,403 million. Among these, investments in jointly
controlled companies are ¥10,969 million.

4. The balance of loans includes ¥180 million in loans to bankrupt borrowers (before deductions for reserve for possible loan losses)and ¥1,220 million in non-accrual delinquent loans (before deductions for reserve for possible loan losses). Loans to bankrupt
borrowers include loans that have been in arrears on principal or interest payments for a considerably long period of time or loans(before deductions for reserve for possible loan losses) on which principal or interest payments are considered unlikely to occur in the
future for other reasons and on which interest income is not recognized. These loans are with reasons defined under Article 96-1-3, ithrough v of the Order for Enforcement of the Corporation Tax Act (Enforcement Order 97 of 1965) or 96-1-4 of the same guidelines.
Non-accrual delinquent loans are loans on which accrued interest income is not recognized, excluding loans to bankrupt borrowers
and loans on which interest payments are deferred in order to support the borrowersʼ recovery from financial difficulties.

5. The balance of loans does not include past due loans (3 months or more). Past due loans (3 months or more) are loans on whichprincipal or interest payments are delayed for 3 months or more from the date following the due date, excluding loans to bankrupt
borrowers and non-accrual delinquent loans.

6. The balance of loans includes ¥800 million in restructured loans (before deductions for reserve for possible loan losses). 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 order to support the borrowersʼ
recovery from financial difficulties, excluding loans to bankrupt borrowers, non-accrual delinquent loans and past due loans (3months or more).

7. The total amount of loans to bankrupt borrowers, non-accrual delinquent loans and restructured loans was ¥2,201 million (before
deductions for reserve for possible loan losses).

8. In terms of loan participation, the participating principals that were accounted for as loans to the original obligor in accordance with
“Accounting and Presentation of Loan Participation” (Accounting Standards Committee of the Japanese Institute of Certified Public

Accountants, Statement No. 3, November 28, 2014) include the consolidated balance sheet amount of ¥6,636 million.

9. Accumulated depreciation of tangible fixed assets as of March 31, 2019 was ¥40,392 million.
10. The balance sheet includes ¥1,300,701 million in assets and liabilities in equal amounts related to separate accounts as stipulated
in Article 118 of the Insurance Business Act of Japan as of March 31, 2019, at SFHʼs life insurance subsidiary.

11. Changes in the reserve for policyholdersʼ dividends at SFHʼs life insurance subsidiary for the fiscal year ended March 31, 2019 are
as follows:
Balance at the beginning of the period
Policyholdersʼ dividends during the period
Increase in interest
Provision for reserve for policyholdersʼ dividends
Balance at the end of the period¥5,484 million¥3,086 million¥0 million¥2,146 million¥4,544 million

Sony Financial Holdings Inc. Financial Data Book 201913

SFH Consolidated Financial Statements

12. On March 31, 2002, SFHʼs life insurance subsidiary revalued its land for operating purposes, as permitted by the Act on Revalua-tion of Land (Act No. 34, enacted March 31, 1998̶the “Law”). The tax effect of the revaluation difference is accounted for differently, depending on whether there are gains or losses; when there is a loss, a valuation allowance is fully provided for the tax effectof the loss, and when there is a gain, the tax effect is recorded in “deferred tax liabilities on land revaluation.” After excluding theseamounts, the net revaluation difference is reported as “land revaluation” in net assets. The revaluation method stipulated by Article
3-3 of the Law was based on the land appraisal in conformity with Article 2-5 of the Order for Enforcement Related to the Law(Cabinet Order No. 119, effective from March 31, 1998).

13. Contracts for commitments to provide credit lines and overdrafts of the life insurance subsidiary and the banking subsidiary areagreements to lend to customers, up to a prescribed amount, as long as there is no violation of the conditions stipulated in thecontracts. The amount of unused commitments at March 31, 2019 was ¥27,553 million, and the amount of unused commitments
whose original contract terms are within 1 year at March 31, 2019 was ¥27,553 million.

14. Expected future losses of the life insurance subsidiary under the life insurance policyholder protection structure stipulated under
Article 259 of the Insurance Business Act of Japan amounted to ¥10,983 million.
Such losses are recognized as expenses during the fiscal year in which they are contributed.

15. Net assets per share were ¥1,505.20.
16. Financial instruments:(1) Description of financial instruments
1) Policy on financial instruments
The Companies conduct the life insurance, non-life insurance and banking businesses, etc., in accordance with the provisions of
the Insurance Business Act of Japan, the Banking Act of Japan and other relevant provisions. With regard to financial assets(except for assets in separate accounts as stipulated in Item 1, Article 118 of the Insurance Business Act of Japan in the life
insurance business), to ensure steady investment income the Companies hold various investment assets, including Japanese
government and corporate bonds, stocks and loans. Deposits from individual customers in the banking business account for nearly
all of the Companiesʼ financial liabilities. Although the Companies hold financial assets as well as financial liabilities, which are
subject to the risk of interest rate and exchange rate fluctuations, they strive to protect themselves from the negative effects ofthese fluctuations by maintaining an appropriate balance between assets and liabilities by conducting asset-liability management(ALM) in each of the businesses. Furthermore, derivative transactions are used to control risks in the life insurance business andbanking business.
2) Financial instruments and related risks
Securities, loans, deposits and derivative transactions constitute the majority of the companiesʼ financial instruments. They are
subject to market risk, which is the risk of incurring losses when their values change due to fluctuations in interest rates, foreignexchange rates, stock prices, etc., as well as credit risk, which is the risk of incurring losses when the value of assets declines ordisappears due to a deterioration in financial or other conditions of an entity to which credit is provided. In addition, they are subject
to market liquidity risk, which is the risk of loss due to an inability to conduct market transactions, as well as the risk of loss if thecompanies are forced to complete transactions under unfavorable market conditions, in each case due to market turmoil or otherfactors.
Most of the securities holdings are in domestic government bonds, foreign government bonds and corporate bonds. Other
holdings include domestic stocks, foreign securities and investments in partnerships.
The majority of loans are policy loans in the life insurance business, and individual mortgage loans in the banking business.
However, policy loans are limited to the amount of surrender payments, and mortgage loans are backed by real estate. Consequently, loan-related risks are relatively low.
Deposits are mainly those from individual customers, some of which are denominated in foreign currencies.
The life insurance business uses several derivative transactions such as forward foreign exchange transactions, stock index
futures trading and total return swap transactions for stocks mainly to hedge the market risk for financial assets and liabilities and,as a matter of policy, does not use derivative transactions for speculative purposes. Hedge accounting is not applied to derivativetransactions used in the life insurance business.
The banking business uses several derivative transactions, and it uses interest rate swaps, etc., to hedge the market risk forfinancial assets and liabilities. In this category, hedge accounting is applied. Interest rate swaps, etc., are used to hedge against theinterest rate risk of fixed-rate loans and deposits. Currency swaps are used to hedge against the exchange rate risk of bonds
denominated in foreign currencies. In hedge accounting, hedge effectiveness is assessed based on the requirements stipulated in
the “Accounting Standards for Financial Instruments” and other standards.
3) Risk management of financial instruments
SFH formulates fundamental principles for risk management and manages risks specific to its subsidiariesʼ scale, business content
and other attributes.
Our Risk Management Guidelines establish specific conditions for managing Group risks, while each of the subsidiaries manages
risks on its own. SFHʼs Corporate Control Department submits periodic reports to SFHʼs Board of Directors and Executive Committee
on subsidiariesʼ risk management conditions recognized through monitoring or by holding Risk Management Meetings.
(i) Credit risk
The Companies use the following methods to manage the credit risk of principal subsidiaries:(a) At the life insurance subsidiary, the risk management division manages issuer credit risk on securities and counterparty risks
by specifying details such as risk management methods and procedures in regulations. The risk management divisionperiodically reports such information to the Board of Directors and the Executive Committee.
(b) The non-life insurance subsidiary ascertains issuer credit information and market values on securities in line with various
regulations for asset management risk. The risk management division reports on the situation regularly to the Board of
Directors and the Executive Committee.

14Sony Financial Holdings Inc. Financial Data Book 2019

SFH Consolidated Financial Statements(c) The banking subsidiary has formulated and conformed to various regulations for managing credit risks, and controls credit
risk depending on the nature of each type of financial asset. In respect of individual loans, the subsidiary has developed aframework for managing individual credit, including credit screenings, management of credit information, setting of collateraland the handling of problem assets on a case-by-case basis.
In respect of corporate loans or bonds payable, the subsidiary has developed a framework for managing corporate credit
and market credit, including credit screenings, credit limit control, the management of credit information, credit ratings, thesetting of guarantees or collateral and handling of problem assets on a case-by-case basis.
The subsidiary manages market credit risk, such as securities issuer credit risk and, on derivative transactions, counterparty risk, by periodically assessing market value information.
The aforementioned credit risk management is carried out by the risk management division and the screening division.
These divisions periodically report risk management conditions to management via the Board of Directors and the Executive
Committee. In addition, the internal audit division conducts regular audits.
(ii) Market risk
The Companies use the following methods to manage the market risk of principal subsidiaries:(a) The life insurance subsidiary manages various market-related risks in the following manner:• Interest rate risk
Interest rate risk is managed by the risk management division based on the regulations for interest rate risk managementthat specify details such as risk management methods and procedures. Based on ALM policies that are determined throughsuch methods as deliberation by the Executive Committee, the subsidiary determines and confirms actual risk conditions
with the Board of Directors. The division maintains an overall grasp on the interest rates and durations of financial instruments, and monitors them based on the analysis of the quantity of risk using value at risk (“VaR”), and it periodically reports
such information to the Board of Directors and the Executive Committee.
• Exchange rate risk
Exchange rate risk is managed by the risk management division based on the regulations for exchange rate risk management that specify details such as risk management methods and procedures. The division periodically reports such information to the Board of Directors and the Executive Committee.
• Equity market price fluctuation risk
Equity market price fluctuation risk is managed by the risk management division based on the regulations for equity market
price fluctuation risk management that specify details such as risk management methods and procedures. The divisionperiodically reports such information to the Board of Directors and the Executive Committee.
• Derivative transactions
Derivative transactions are managed by the risk management division based on the regulations for derivative transactions
that specify details such as risk management methods and procedures. The division periodically reports such information to
the Board of Directors and the Executive Committee.
(b) The non-life insurance subsidiary manages various market-related risks in the following manner:• Interest rate risk
Regulations on asset management risk specify the details such as risk management methods and procedures based on risk
management policies determined by the Board of Directors. The risk management division monitors individual risks andreports on the situation regularly to the Board of Directors and the Executive Committee.
• Price fluctuation risk
Equity securities are held for strategic investments for the purpose of enhancing business partnerships. In accordance withregulations on asset management risk, the risk management division monitors the market environment and financial conditions, and reports on the situation regularly to the Board of Directors and the Executive Committee.
(c) The banking subsidiary manages various market-related risks in the following manner. The risk management division handles
each of these risks and periodically reports risk management conditions to the Board of Directors and the Executive Committee. In addition, the internal audit division conducts regular audits.
• Interest rate and exchange rate risk
By formulating and conforming with market risk management regulations, the subsidiary manages the risk of loss fromchanges in the value of assets and liabilities (including off-balance-sheet items) as well as from changes in income fromassets and liabilities, owing to fluctuations in various market risk factors, such as interest rates, exchange rates and stock
prices. Market risk management regulations specify details such as risk management methods and procedures. Based on
ALM and risk management policies that are determined through such methods as deliberation by the Board of Directors, an
ALM committee and a risk management committee meet̶typically once each month̶to understand and confirm actual
conditions and deliberate future responses and risk conditions. On a daily basis, the risk management division maintains anoverall understanding of interest and exchange rates on financial assets and liabilities, as well as their durations, conducts
monitoring that includes VaR and interest rate sensitivity analysis and ensures regulatory conformance. The subsidiary also
conducts interest rate swaps, currency swaps, foreign exchange and other derivative transactions to hedge against interest
and exchange rate fluctuation risks.
• Market price fluctuation risk
The subsidiary manages the holding of investment products, including securities, in accordance with market risk management regulations as well as market credit risk. The investment division purchases securities externally, and risks associatedwith changes in the market price of such securities are managed through prior screening by the screening division, thesetting and control of investment limits by the risk management division, and continuous monitoring by each responsible
division.
• Derivative transactions
Derivative transactions are executed in accordance with regulations on market risk. The subsidiary also separates andconducts internal checks of individual departmentsʼ execution of transactions, evaluation of hedge effectiveness andoperations management.
• Quantitative information on market risk
The principal financial instruments affected by the major risk parameters of interest rate risk and exchange rate fluctuation
risk are loans, securities, deposits in the banking business and derivative transactions.
The impact of such risks on these financial assets and liabilities was calculated using the historical simulation method todetermine gains or losses over a given period of 20 business days, assuming the fluctuation of interest and exchange rates

Sony Financial Holdings Inc. Financial Data Book 201915

SFH Consolidated Financial Statements

within a rational forecast band determined over an observation period of 250 business days. The Companies then employed
quantitative analysis to manage interest rate and exchange rate fluctuation risks. The resulting risk amount with a 99%
confidence interval was ¥1,405 million as of the end of this fiscal year.
This amount of impact is based on the assumption that risk parameters other than interest rates and exchange rates are
fixed. In the event that fluctuations exceed the rational forecast band for interest and exchange rates, the risk impact may
exceed the amount calculated. The aforementioned market risk management is carried out primarily by the risk management
division. The division periodically reports risk management conditions to the Board of Directors and the Executive Committee. In addition, the internal audit division conducts regular audits.
(iii) Liquidity risk
The Companies use the following methods to manage the liquidity risk of principal subsidiaries.
(a) At the life insurance subsidiary, in line with liquidity risk management regulations, the accounting division prepares andupdates cash flow plans in a timely manner based on the reports from departments and manages cash flows, and the risk
management division manages the liquidity risk. The accounting division and risk management division periodically or asneeded report such information to the Board of Directors and the Executive Committee.
(b) The non-life insurance subsidiary establishes regulations related to liquidity risk. Its cash flow management division preparesand updates cash flow plans. The risk management division manages liquidity risk by monitoring the situations and reportson the situations regularly to the Board of Directors and the Executive Committee.
(c) The banking subsidiary has formulated and conformed with regulations for managing liquidity risk and manages a variety ofliquidity risks. Concerning the management of cash flow risks, cash flows are classified into phases based on the degree ofpressure, and methods for risk management and reporting are set out for each phase, while guidelines are formulated andreviewed as necessary. To manage market liquidity risk, the subsidiary works to understand market liquidity conditions thatpertain to the types of products it handles. The subsidiary formulates and revises guidelines on a product-by-product basis,
as necessary. The aforementioned liquidity risk management is carried out by the risk management division. The divisionperiodically reports risk management conditions to the Board of Directors and the Executive Committee. In addition, theinternal audit division conducts regular audits.

4) Supplementary explanation of the fair value of financial instruments
Market prices of financial instruments are considered to indicate their fair values, unless market prices are not available. In this case,rational methods are used to measure their fair values. Although these measurements use assumptions that are believed to bereasonable under the circumstances, the resulting values may differ if measured using different assumptions.

(2) Fair value information on financial instruments

Below is fair value information on financial instruments as of March 31, 2019, excluding securities whose fair values are not readily
determinable (see Note 2).
Millions of yen
2019
Consolidatedbalance sheet
As of March 31,
amountFair value
Difference̶1) Cash and due from banks
415,894
415,894
̶2) Call loans and bills bought
93,70093,7003) Money held in trust̶
Other money held in trust
291,324
291,324
4) Securities̶Trading securities
1,185,507
1,185,507
Held-to-maturity securities
6,850,128
8,902,627
2,052,499
Policy-reserve-matching bonds
680,757
764,282
83,525̶Available-for-sale securities
1,634,941
1,634,941
5) Loans
1,942,546
Reserve for possible loan losses (*1)(898)
Loans (after deduction for reserve for possible loan losses)
1,941,648
2,138,531
196,883
Total Financial Assets
13,093,901
15,426,808
2,332,907
1) Deposits
2,302,313
2,303,826
1,513
̶2) Call money and bills sold
130,611130,611
3) Borrowed money
203,871204,1853144) Bonds payable
20,00020,113113
̶5) Payables under repurchase agreements
101,764
101,764
̶6) Collateral for securities lending transactions
331,055
331,055
Total Financial Liabilities
3,089,616
3,091,557
1,941
Derivative financial instruments (*2)̶
Hedge accounting not applied[5,950][5,950]̶
Hedge accounting applied[13,085][13,085]̶Total Derivative Financial Instruments[19,035][19,035](*1) Excludes general and specific reserves for possible loan losses.
(*2) Figures are totals resulting from derivative transactions, which are accounted for as other assets and liabilities on the consolidatedbalance sheets. If the total is a debt amount, the above figure is shown in [ ].

16Sony Financial Holdings Inc. Financial Data Book 2019

SFH Consolidated Financial Statements(Note 1) Calculation of the fair value of financial instruments
Financial Assets

1) Cash and due from banks and 2) Call loans and bills bought
The fair value is regarded as the carrying amount, as they are approximately equal.
3) Money held in trust
In individual money held in trust mainly for investment purposes, the fair value of bonds is the market price on financial instrument
exchanges or the price indicated by a financial institution. Please see “18. Fair value information on money held in trust,” whichindicates fair values by purpose.
4) Securities
The fair value of stocks is the market price on stock markets or financial instrument exchanges. The fair value of bonds andinvestment funds is the market price or the price indicated by a financial institution. Please see “17. Fair value information on
securities,” which indicates fair values by purpose.
5) Loans(i) Loans in the banking business
The fair value of these loans is calculated by type, by estimating their future cash flows and then applying a prescribed discountrate. The discount rate is determined by adding to the LIBOR-based yield curve a premium corresponding to the allowance rateof general provision for loan losses.
(ii) Policy loans in the life insurance business
The fair value of policyholder loans is valued by discounting future cash flows to their current value.
(iii) General loans
The fair value of general loans is regarded as the carrying amount, as they are approximately equal.

Financial Liabilities
1) Deposits
The fair value of deposits is calculated by type, by estimating their future cash flows and then applying a prescribed discount rate.
The discount rate is determined by adding to the LIBOR-based yield curve a premium corresponding to the banking subsidiaryʼs
cumulative default rate by rating.
2) Call money and bills sold
The fair value is regarded as the carrying amount, as they are approximately equal.
3) Borrowed money
The present value of borrowed money is calculated by discounting the future cash flows of the principal and interest with the
LIBOR-based yield curve.
4) Bonds payable
The fair value of bonds payable is the market price or the price indicated by a financial institution.
5) Payables under repurchase agreements
The fair value is regarded as the carrying amount, as they are approximately equal.
6) Collateral for securities lending transactions
The fair value is regarded as the carrying amount, as they are approximately equal.

Derivative Transactions
Please see “19. Derivative financial instruments,” which indicates measurement of fair value.

(Note 2) Securities whose fair values are deemed extremely difficult to determine are as follows. They are not included in “4) Securities” of
Financial Assets in (Note 1) above.

Millions of yen

2019

As of March 31,

1) Unlisted stocks in non-consolidated subsidiaries and affiliates (*1)2) Unlisted stocks other than those in 1) above (*1)

Consolidatedbalance sheet
amount11,4033893) Investment in partnership (*2)

10,061

Total

21,854(*1) Unlisted stocks have no market prices and their fair values are not readily determinable.
(*2) Assets included in “investment in partnership” are stocks in unlisted companies.
Note: Unlisted stocks and investment in partnership are considered impaired if their actual value decreases materially below the acquisition
cost and such decline is considered non-recoverable. Their actual value is recognized as the consolidated balance sheet amount andthe write-down is accounted for as a devaluation loss (hereinafter, “impairment”) for the fiscal year.
Impairment losses on unlisted stocks and investment in partnership were not recognized for the fiscal year.
Impairment losses are principally recorded when their actual value as of the end of the fiscal year has declined by 50% or more fromthe acquisition cost.

Sony Financial Holdings Inc. Financial Data Book 201917

SFH Consolidated Financial Statements(Note 3) Future redemption schedule of monetary claims and securities with maturities
Millions of yen

2019More than
1 year to
5 years

1 year or less

As of March 31,

More than
5 years to
10 years

Over 10 years

Cash and due from banks

415,894̶̶̶Call loans and bills bought

93,700

̶

̶

̶

6,268

37,419390,410

6,748,306

6,168

37,319390,410

6,032,010

5,311

34,487

390,110

5,629,610

857

2,832

300

402,400

100

100

̶

716,296

̶

̶

3,220

739,274

̶

̶

3,220

596,430

Japanese government and local government bonds

̶

̶

̶

483,630

Japanese corporate bonds

̶

̶

3,220

112,800̶̶̶

142,844

Securities
Held-to-maturity securities
Japanese government and corporate bonds
Japanese government and local government bonds
Japanese corporate bonds
Others
Policy-reserve-matching bonds
Japanese government and corporate bonds

Others132,469

406,250

278,119674,026

37,818

163,580

243,701

386,450

Japanese government and local government bonds

26,412

99,664

241,200

386,450

Japanese corporate bonds

11,406

63,9152,501

̶

94,650242,670

34,418287,576

Available-for-sale securities
Japanese government and corporate bonds

OthersLoans (*)
Total

6,302

38,67363,862

1,616,078

654,633

482,344735,6129,777,685(*) This figure excludes ¥198,369 million with no fixed redemption such as policyholder loans, and ¥18,312 million in overdrafts.

(Note 4) The future return schedule of deposits and other liabilities with interest
Millions of yen

2019

As of March 31,

1 year or lessMore than
1 year to
2 years

Deposits (*)

2,160,620

72,423

19,797

11,082

10,813

27,577

130,611

̶

̶

̶

̶

̶

Borrowed money

512

30,12280,122

93,112̶̶Bonds payable

̶

̶

̶

10,000̶

10,000

Payables under repurchase agreements

101,764

̶

̶

̶

̶

̶

Collateral for securities lending transactions

331,055

̶

̶

̶

̶

̶

2,724,564

102,546

99,919114,195

10,81337,577

Call money and bills sold

Total

More than
2 years to
3 years

More than
3 years to
4 years

More than
4 years to
5 years

More than
5 years(*) Demand deposits are included in “1 year or less.”

17. Fair value information on securities as of March 31, 2019:* In addition to “Securities” on the consolidated balance sheets, the figures in the following tables include beneficiary certificates ofinvestment trust in “Monetary claims purchased.”(1) Trading securities
Millions of yen
As of March 31,

Valuation gains charged to income

18Sony Financial Holdings Inc. Financial Data Book 20192019
30,070SFH Consolidated Financial Statements(2) Held-to-maturity securities
Millions of yen

2019
As of March 31,

Fair values exceeding the consolidated balance sheet amountJapanese government and corporate bonds
Japanese government and local government bonds
Japanese corporate bonds
OthersSubtotal
Fair values not exceeding the consolidated balance sheet amountJapanese government and corporate bonds
Japanese corporate bonds
OthersSubtotal
Total

Consolidatedbalance sheet
amountFair value

Difference

6,350,623
6,045,152
305,471
206,528
6,557,151

8,413,175
8,063,327
349,848
217,026
8,630,201

2,062,552
2,018,174
44,377
10,4972,073,050

103,822
103,822
189,153
292,976
6,850,128

97,983
97,983
174,441
272,425
8,902,627(5,839)(5,839)(14,711)(20,551)
2,052,499(3) Policy-reserve-matching bonds
Millions of yen

2019
As of March 31,

Fair values exceeding the consolidated balance sheet amountJapanese government and corporate bonds
Japanese government and local government bonds
Japanese corporate bonds
OthersSubtotal
Fair values not exceeding the consolidated balance sheet amountJapanese government and corporate bonds
Japanese corporate bonds
OthersSubtotal
Total

Consolidatedbalance sheet
amountFair value

Difference

600,839492,212
108,626
62,079662,919

680,444554,811
125,633
66,207
746,652

79,60562,59817,006
4,128
83,73315,08715,087
2,751
17,838680,757

14,894
14,894
2,735
17,629764,282

(192)
(192)
(15)
(208)
83,525(4) Available-for-sale securities
Millions of yen

2019
As of March 31,

Consolidated balance sheet amount exceeding the acquisition cost
Japanese government and corporate bonds
Japanese government and local government bonds
Japanese corporate bonds
Equity securities
OthersSubtotal
Consolidated balance sheet amount not exceeding the acquisition cost
Japanese government and corporate bonds
Japanese government and local government bonds
Japanese corporate bonds
Equity securities
OthersSubtotal
Total

Consolidatedbalance sheet
amountAcquisition cost

Difference

933,528
870,362
63,165
19,931
290,241
1,243,700

807,489
744,960
62,5299,101
282,166
1,098,758

126,038
125,402635
10,8308,074
144,942

31,765
16,07015,694
811
363,580
396,157
1,639,857

31,79416,092
15,701
908
367,306
400,009
1,498,767

(29)
(21)
(7)
(96)
(3,725)(3,852)141,090

Note: As the unlisted stocks of ¥389 million (consolidated balance sheet amount) and investment in partnership of ¥10,061 million (consolidated balance sheet amount) have no market prices and their fair values are not readily determinable, they are not included in the table
above.

Sony Financial Holdings Inc. Financial Data Book 201919

SFH Consolidated Financial Statements(5) Held-to-maturity securities sold during the period
There is no related information to be reported.

(6) Policy-reserve-matching bonds sold during the period
There is no related information to be reported.

(7) Available-for-sale securities sold during the period
Millions of yen

2019
Total gains on
sales
212
207
4
6,655
58
6,925

Sales
64,01445,264
18,74910,716
6,157
80,889For the year ended March 31,

Japanese government and corporate bonds
Japanese government and local government bonds
Japanese corporate bonds
Equity securities
Others
Total

Total losses on
sales
475
262
212
34
0
509

(8) Impairment of available-for-sale securities

Available-for-sale securities with fair value are considered impaired if the fair value decreases materially below the acquisition costand such decline is considered non-recoverable. The fair value is recognized as the consolidated balance sheet amount and thewrite-down is accounted for as a devaluation loss for the fiscal year.
¥4,026 million of impairment losses for available-for-sale securities (including ¥4,026 million of foreign securities) was recognized
for the year ended March 31, 2019.
“Material decline” is indicated when the fair value declines by 30% or more from the acquisition cost.

18. Fair value information on money held in trust as of March 31, 2019:(1) Money held in trust for trading

There is no related information to be reported.

(2) Money held in trust for held-to-maturity and policy-reserve-matching
There is no related information to be reported.

(3) Other money held in trust (other than for trading, held-to-maturity or policy-reserve-matching)
Millions of yen

2019
As of March 31,

Other money held in trust

Consolidatedbalance sheet
amount291,324

Acquisition cost
254,055

Difference
37,269Items whose consolidated Items whose consolidatedbalance sheet amount balance sheet amount does
exceeds acquisition cost not exceed acquisition cost
37,275(6)

Notes: 1. The amount of jointly invested monetary trusts that is included in the table above as of March 31, 2019 is ¥40 million.
2. “Items whose consolidated balance sheet amount exceeds acquisition cost” and “Items whose consolidated balance sheet
amount does not exceed acquisition cost” are the breakdown of the difference.

(4) Impairment of other money held in trust

Securities with fair values that are included in other money held in trust are considered impaired if their fair value decreases materially below the acquisition cost and such decline is considered non-recoverable.
No impairment loss was recognized for the year ended March 31, 2019.
“Material decline” is indicated when the fair value declines by 30% or more from the acquisition cost.

19. Derivative financial instruments:(1) Hedge accounting not applied

Below is a summary of contractual or notional amounts, current market or fair values, valuation gains or losses, and the method of
calculating the fair values of derivatives, classified by transaction, to which hedge accounting is not applied. Notional amounts do
not indicate exposure to credit loss.

1) Interest rate derivatives
Millions of yen

2019

Notional amount Notional amounttotal
over 1 year

As of March 31,

Over-the-countertransactions

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

Total

Valuation gains(losses)

Fair value

21,053

20,9678

8

23,06422,978

4

4

5,300

5,300

(18)
(4)

12
25

̶

̶

Notes: 1. The above transactions are valued at market, and the valuation gains or losses are recorded in the consolidated statements ofincome.
2. Fair values are calculated using the discounted cash flow and option pricing models.

20

Sony Financial Holdings Inc. Financial Data Book 2019

SFH Consolidated Financial Statements

2) Currency derivatives
Millions of yen

2019
As of March 31,

Over-the-countertransactions

Forward foreignexchanges
Foreign exchange
margin transaction
Currency options
Currency forward
contracts

Sold
BoughtSold
BoughtSold
BoughtSold
BoughtNotional amount Notional amounttotal
over 1 year̶
72,263
̶
98,562
̶
46,283
̶22,230
̶
60
̶
190
̶
15
̶
12,786

Fair value
(437)
8
954
1,130
(0)
1
(0)
(270)
1,386

Valuation gains(losses)
(437)
8
954
1,130
(0)
0
(0)
(270)
1,386

̶
̶
Total
Notes: 1. The above transactions are valued at market, and the valuation gains or losses are recorded in the consolidated statements
of income.
2. Fair value is measured using the discounted cash flow, option pricing models and other methods.

3) Stock derivatives
Millions of yen

2019
As of March 31,

ListedOver-the-countertransactions
Total

Stock index futures

Sold

Notional amount Notional amounttotal
over 1 year̶
58,724

Fair value
308

Valuation gains(losses)308

̶(7,640)(7,640)̶̶(7,331)(7,331)
Notes: 1. The above transactions are valued at market, and the valuation gains or losses are recorded in the consolidated statements
of income.
2. The fair value for exchange-traded transactions is the closing price on the Exchange at the end of the fiscal year.
The fair value for the over-the-counter transactions is stated at the share prices at the end of the fiscal year and othermethods.

Total return swap

Sold

63,107(2) Hedge accounting is applied

The following provides a summary of contractual or notional amounts, current market or fair values, valuation gains or losses, andthe method of calculating the fair values of derivatives, classified by transactions, to which hedge accounting is applied. Notionalamounts do not indicate exposure to credit loss.

1) Interest rate derivatives
Millions of yen

2019
As of March 31,
Hedge accounting

Deferred hedge accounting

Fair value hedge accounting

Hedging instrument

Interest rate swaps
Floating-ratereceivable/ Fixedrate payable
Interest rate swaps
Floating-ratereceivable/ Fixedrate payable

Notional
amount total

Notional
amountover 1 year

Fair value

Deposits

73,00073,000(686)

Available-for-salesecurities (bonds)

222,816

192,342(10,672)

Hedged item̶
̶(11,358)
Notes: 1. Deferred hedge accounting is applied in accordance with the Industry Audit Committee No. 24, along with fair value hedge
accounting.
2. Fair value is calculated using the discounted cash flow and other methods.

Total2) Currency derivatives
Millions of yen

2019
As of March 31,
Hedge accounting

Hedging instrument

Hedged item

Deferred hedge accounting

Currency swaps

Fair value hedge accounting

Currency swaps

Available-for-salesecurities (bonds)
Available-for-salesecurities (bonds)

Notional
amount total

Notional
amountover 1 year

Fair value

23,25523,255(931)

24,00010,000(795)

̶̶
(1,726)
Notes: 1. Deferred hedge accounting is applied in accordance with the Industry Audit Committee No. 25, along with fair value hedge
accounting.
2. Fair value is calculated using the discounted cash flow and other methods.

TotalSony Financial Holdings Inc. Financial Data Book 201921

SFH Consolidated Financial Statements

20. Information about retirement benefit obligations as of March 31, 2019:(1) Overview of retirement benefit plans

The life insurance subsidiary provides a lump-sum retirement benefit plan to sales staff and a defined benefit corporate pension
plan and defined contribution pension plan to internal office staff. The non-life insurance subsidiary provides a lump-sum retirement
benefit plan and a defined contribution pension plan. SFH and its banking subsidiary mainly provide a lump-sum retirement benefit
plan. SFH and some consolidated subsidiaries calculate retirement benefit obligations based on the simplified method.

(2) Defined benefit plans

1) Reconciliation of beginning and ending balances of retirement benefit obligations (excluding those listed in 9))
Millions of yen
For the year ended March 31,

Balance at the beginning of the period of retirement benefit obligations

201945,222Service cost

4,959Interest cost107

Net actuarial gain arising during the period

145

Retirement benefits paid
Balance at the end of the period of retirement benefit obligations(3,540)46,893

2) Reconciliation of beginning and ending balances of plan assets (excluding those listed in 9))
Millions of yen
For the year ended March 31,

Balance at the beginning of the period of plan assets

2019
15,601
159

Expected return on plan assets

28

Net actuarial gain arising during the period
Employer contribution

1,223

Retirement benefits paid

(567)

Balance at the end of the period of plan assets

16,4453) Reconciliation of the ending balances of retirement benefit obligations and plan assets, and net defined benefit
liability and net defined benefit asset recorded on the consolidated balance sheets.
Millions of yen
As of March 31,

2019

Funded retirement benefit obligations

12,738Plan assets(16,445)

Unfunded retirement benefit obligations

34,311

Net liabilities and assets recorded on the consolidated balance sheets

30,604

Net defined benefit liability

34,081(3,706)

Net defined benefit asset(3,476)Net liabilities and assets recorded on the consolidated balance sheets

30,604

4) Components and amounts of retirement benefit expenses
Millions of yen
For the year ended March 31,

Service cost

4,959Interest cost

107

Expected return on plan assets(159)

Amortization of net actuarial gain

750

OthersRetirement benefit expenses related to defined benefit plans
Note: SFH includes retirement benefit expenses in “Others” based on the simplified method.

22

2019

Sony Financial Holdings Inc. Financial Data Book 2019

113
5,772

SFH Consolidated Financial Statements

5) Remeasurements of defined benefit plans (before tax deductions)
The breakdown of items recorded as remeasurements of defined benefit plans (before tax deductions) is as follows:
Millions of yen

2019

For the year ended March 31,

Net actuarial gain

633

Total

633

6) Accumulated remeasurements of defined benefit plans (before tax deductions)
The breakdown of items recorded as accumulated remeasurements of defined benefit plans (before tax deductions) is as follows:
Millions of yen

2019

As of March 31,

Unrecognized net actuarial gain

(2,090)Total(2,090)7) Plan assets(i) Main components of plan assets
The percentage share of components by main asset class out of total plan assets is as follows:%2019

As of March 31,

Bonds

66

Equity securities

30

Others

5

Total

100

(ii) Method of setting the long-term rate of expected return on plan assets
The long-term rate of expected return on plan assets is determined by taking into account the current and expected allocationof plan assets and the current long-term return rate and the long-term return rate that is expected in the future based on thevarious assets that comprise the plan assets.

8) Basis for calculating actuarial gain or loss
Main basis for calculating actuarial gain or loss as of March 31, 2019
Discount rate
0.1%–0.6%
Long-term rate of expected return on plan assets
1.0%–2.6%
9) Reconciliation of beginning and ending balances of net defined benefit liability of the plan based on the simplified
methodMillions of yen

2019

For the year ended March 31,

132

Balance at the beginning of the period of net defined benefit liability
Retirement benefit expenses

33

Retirement benefits paid

(4)

Contribution to the plan

(23)
17

Others156

Balance at the end of the period of net defined benefit liability(3) Defined contribution plans

The amount of contribution required for defined contribution plans by the Companies was ¥355 million.

Sony Financial Holdings Inc. Financial Data Book 201923

SFH Consolidated Financial Statements

21. Information on stock options, etc., as of March 31, 2019:(1) Expenses and line items associated with stock options, etc.
Operating expenses, etc.

¥121 million(2) Description and volume of stock options as well as their changes
1) Description of stock options
The first series of stock acquisition rights of SFH

Category and number of
eligible recipients
Number of stock options
granted by type of share (Note)
Grant date

Vesting conditions

Eligible period of service

Exercise period

4 executive directors of SFH
Common stock 52,900 shares
August 8, 2016
Options rights are to be vested upon grant.
However, if the recipient loses the position of executive director of the Company prior to the Ordinary General Meeting of Shareholders in 2017, he/she can exercise the number of stock options
calculated by multiplying the number of stock options granted, by the number of months he/sheserves as executive director from July 2016 up to the month of losing his/her position, anddividing the value by 12. The rest of the stock options granted shall no longer be exercisable onor after the date of the recipient losing his/her position, and is cancelled.
From June 24, 2016 to the date of the Ordinary General Meeting of Shareholders in 2017
From August 9, 2016 to August 8, 2046
However, eligible recipients of stock acquisition rights may exercise all (but not part) of the stockacquisition rights held by him/her only during the period from the day immediately following thedate on which such holder loses any and all of his/her office(s) as executive director of SFH up toten days (in the event that the tenth day is a holiday, the following business day) thereafter.
The second series of stock acquisition rights of SFH

Category and number of
eligible recipients
Number of stock options
granted by type of share (Note)
Grant date

Vesting conditions

Eligible period of service

Exercise period

3 executive directors of SFH
7 executive directors of SFH subsidiaries
Common stock 41,700 shares
August 7, 2017
Options rights are to be vested upon grant.
However, if the recipient loses the position of executive director of the Company and its subsidiaries prior to the Ordinary General Meeting of Shareholders in 2018, he/she can exercise thenumber of stock options calculated by multiplying the number of stock options granted, by the
number of months he/she serves as executive director from July 2017 up to the month of losing
his/ her position, and dividing the value by 12. The rest of the stock options granted shall nolonger be exercisable on or after the date of the recipient losing his/her position, and is cancelled.
From June 21, 2017 to the date of the Ordinary General Meeting of Shareholders in 2018
From August 8, 2017 to August 7, 2047
However, eligible recipients of stock acquisition rights may exercise all (but not part) of the stockacquisition rights held by him/her only during the period from the day immediately following thedate on which such holder loses any and all of his/her office(s) as executive director of SFH andits subsidiaries up to ten days (in the event that the tenth day is a holiday, the following businessday) thereafter.
The third series of stock acquisition rights of SFH

Category and number of
eligible recipients
Number of stock options
granted by type of share (Note)
Grant date

Vesting conditions

Eligible period of service

Exercise period

3 executive directors of SFH
6 executive directors of SFH subsidiaries
Common stock 31,600 shares
August 7, 2018
Options rights are to be vested upon grant.
However, if the recipient loses the position of executive director of the Company and its subsidiaries prior to the Ordinary General Meeting of Shareholders in 2019, he/she can exercise thenumber of stock options calculated by multiplying the number of stock options granted, by the
number of months he/she serves as executive director from July 2018 up to the month of losing
his/ her position, and dividing the value by 12. The rest of the stock options granted shall nolonger be exercisable on or after the date of the recipient losing his/her position, and is cancelled.
From June 22, 2018 to the date of the Ordinary General Meeting of Shareholders in 2019
From August 8, 2018 to August 7, 2048
However, eligible recipients of stock acquisition rights may exercise all (but not part) of the stockacquisition rights held by him/her only during the period from the day immediately following thedate on which such holder loses any and all of his/her office(s) as executive director of SFH andits subsidiaries up to ten days (in the event that the tenth day is a holiday, the following businessday) thereafter.

Note: Stock options have been converted and stated as number of shares.

24

Sony Financial Holdings Inc. Financial Data Book 2019

SFH Consolidated Financial Statements

2) Volume of stock options and their changes
Stock options that existed in the year ended March 31, 2019, are presented as follows, and have been converted and stated as
number of shares.
(i) Number of stock options
The first series of stockacquisition rights of SFH

The second series of stockacquisition rights of SFH

̶
̶
̶
̶
̶

̶
̶
̶
̶
̶

35,70041,700

̶

̶
̶
̶

̶

31,600

7,700
̶

̶
̶

35,70034,00031,600The first series of stockacquisition rights of SFH

The second series of stockacquisition rights of SFH

The third series of stockacquisition rights of SFH

Before vesting(shares)At the end of the previous year
Granted
LapsedVestedNumber of unvested stock options
After vesting(shares)At the end of the previous year
VestedExercised
LapsedNumber of unexercised stock options

The third series of stockacquisition rights of SFH
̶

31,600̶

31,600̶(ii) Unit price information

Exercise price
Average share price at the time of exercise
Fairly assessed value on the grant date¥1̶¥1,236¥1¥2,000¥1,695¥1
̶

¥2,003(3) Method for estimating the fair value of stock options

The method for estimating the fair value of stock options that were granted in the year ended March 31, 2019 is as follows:

1) Assessment method used
Black-Scholes model2) Main basic values and their estimation method
The third series of stockacquisition rights of SFH

Volatility of share price (*1)
Expected remaining period (*2)
Expected dividend (*3)
Risk-free rate (*4)

31.507%
4.4 years¥60/share(0.082%)(*1) Calculated based on the past share prices during the period corresponding to the expected remaining period of 4.4 years in (*2).
(*2) Calculated by weighting and averaging the expected period of service by the amount to be granted.
(*3) Based on the actual dividends for the fiscal year ended March 31, 2018.
(*4) Calculated using the average compound yield of long-term JGB with the remaining period approximate to the expected remaining
period of 4.4 years in (*2).

(4) Method for estimating the number of stock options vested
As it is difficult, as a general rule, to reasonably estimate the number of stock options to lapse in the future, SFH adopts a method that
only reflects the actual number lapsed.

(5) Description of restricted stock compensation
The first series of restricted stock compensation of SFH

Categories and numbers of
eligible recipients
Number of shares granted
Grant date
Transfer restriction period

Cancellation conditions

Fairly assessed value on the
grant date

3 executive directors of SFH
4 executive officers of SFH
7 executive directors of SFH subsidiaries
30 executive officers of SFH subsidiaries
27,513 shares of common stock
August 7, 2017
From August 7, 2017 to August 7, 2020
On the condition that the recipient has maintained his/her position of executive director, etc., of
SFH continuously during the transfer restriction period, the transfer restriction shall be cancelled
at the expiration of the transfer restriction period.
If the recipient loses his/her position of executive director, etc., prior to the expiration of the transfer restriction period for reasons that the Board of Directors of SFH deems justifiable, he/she cancancel the transfer restriction for the number of allocated stock calculated by multiplying thenumber of allocated stock by the number of months he/she serves as executive director, etc.,from the month of the appointment of his/her respective position up to the month of losing his/her position, and dividing the value by 12. SFH shall acquire the allocated stock not subject tothe cancellation of the transfer restriction free of charge immediately after the cancellation.
¥2,020Sony Financial Holdings Inc. Financial Data Book 201925

SFH Consolidated Financial Statements

The second series of restricted stock compensation of SFH

Categories and numbers of
eligible recipients
Number of shares granted
Grant date
Transfer restriction period

Cancellation conditions

Fairly assessed value on the
grant date

3 executive directors of SFH
4 executive officers of SFH
6 executive directors of SFH subsidiaries
33 executive officers of SFH subsidiaries
27,770 shares of common stock
August 7, 2018
From August 7, 2018 to August 7, 2021
On the condition that the recipient has maintained his/her position of executive director, etc., of
SFH continuously during the transfer restriction period, the transfer restriction shall be cancelled
at the expiration of the transfer restriction period.
If the recipient loses his/her position of executive director, etc., prior to the expiration of the transfer restriction period for reasons that the Board of Directors of SFH deems justifiable, he/she cancancel the transfer restriction for the number of allocated stock calculated by multiplying thenumber of allocated stock by the number of months he/she serves as executive director, etc.,from the month of the appointment of his/her respective position up to the month of losing his/her position, and dividing the value by 12. SFH shall acquire the allocated stock not subject tothe cancellation of the transfer restriction free of charge immediately after the cancellation.
¥2,091

22. Information on tax effect accounting as of March 31, 2019:(1) Breakdown of major factors giving rise to deferred tax assets and deferred tax liabilities
Millions of yen
2019

As of March 31,

Deferred tax assets
Tax loss carried forward (*2)
Policy reserves and others
Reserve for price fluctuations
Net defined benefit liability
Write-down of securities
Depreciation and amortization
Net deferred losses on hedging instruments
OthersSubtotal of deferred tax assets
Valuation allowance on tax loss carried forward (*2)
Valuation allowance on total deductible temporary differences
Subtotal of valuation allowance (*1)
Total deferred tax assets
Deferred tax liabilities
Net unrealized gains on available-for-sale securities
OthersTotal deferred tax liabilities
Net deferred tax assets (liabilities)

1,857
42,83014,096
8,608
2,267
4,587
556
7,744
82,548(1,857)(3,129)(4,987)
77,561(49,331)(697)(50,028)
27,532

Notes 1. Valuation allowance increased mainly due to the additional recognition of valuation allowance for losses on valuation of securities inSony Life Insurance Co., Ltd., a subsidiary of the Company.
2. Tax loss carried forward and the deferred tax assets by carry forward period

Millions of yen

As of March 31, 2019

Tax loss carried forward
Valuation allowance
Deferred tax assets

1 year or
less
6
(6)
̶

More than
1 year to
2 years4(4)̶More than
2 year to
3 years
12(12)̶More than
3 year to
4 years
211
(211)
̶

More than
4 year to
5 years
375
(375)
̶

More than
5 years
1,246(1,246)
̶

Total
1,857
(1,857)̶* Tax loss carried forward is calculated by multiplying statutory effective tax rate.

(2) Breakdown of major items giving rise to a significant difference between the statutory effective tax
rate and the effective income tax rate after application of tax effect accounting%
As of March 31,

Statutory effective tax rate
(Adjustments)
Difference in tax rate of subsidiaries
Increase (decrease) in valuation allowance
Others
Effective income tax rate after application of tax effect accounting

26

Sony Financial Holdings Inc. Financial Data Book 2019

2019
30.6
(2.4)
1.0
1.0
30.2

SFH Consolidated Financial Statements

23. Asset retirement obligations:

Asset retirement obligations recorded on the consolidated balance sheets(1) Overview of asset retirement obligations
The reserve for asset retirement obligations is provided for the obligation to restore sites to their original states under the lease agreement ofcommercial properties, as well as the estimated amount of asbestos removal cost associated with investment and rental property in accordance with Ordinance on Prevention of Health Impairment due to Asbestos and others.

(2) Basis of measurement for asset retirement obligations
The amount of asset retirement obligations is calculated by estimating the usable period to be 15 to 50 years from acquisition and then applying a 0.1% to 2.3% discount rate.

(3) Changes in the balance of asset retirement obligations
Millions of yen
2019
2,131
52
15
(23)
2,176

For the year ended March 31,

Balance at the beginning of the period
Increase due to purchase of tangible fixed assets
Changes resulting from the passage of time
Decrease due to performance of asset retirement obligations
Balance at the end of the period

24. Fair value information on investment and rental property:

Some consolidated subsidiaries own rental office buildings in Tokyo and other areas. Income related to investment and rental
property amounted to ¥4,959 million for the year ended March 31, 2019. Below is the consolidated balance sheet amount, net ofchanges during the period, and the fair value at the end of the current period.
Millions of yen
2019

For the year ended March 31,

Consolidated balance sheet amount
Balance at the beginning of the period
Changes during the period
Balance at the end of the period
Fair value at the end of the period

86,376(2,385)83,991
183,534

Notes: 1. The consolidated balance sheet amount is the acquisition cost less accumulated depreciation and impairment losses.
2. The fair value at the end of the period is determined by a licensed third-party real estate appraisal agent.

25. A subsequent event is as follows:

May 17, 2019 – The Board of Directors passed a comprehensive resolution and reached an agreement with the Companyʼswholly-owned consolidated subsidiary Sony Life Insurance Co., Ltd., to make AEGON Sony Life Insurance Co., Ltd. and SA
Reinsurance Ltd. its subsidiaries (sub-subsidiaries of the Company) by acquiring 50% of the outstanding shares of each company.
The aim is to accelerate management decision making and streamline business operation at both companies.

1. Name of acquiree of equity acquisition
AEGON International B.V.

2. Details on equity acquisition(1) AEGON Sony Life Insurance Co., Ltd.
(i) Outline of the company
a. Capital¥18,750 million (As of March 31, 2019)b. BusinessLife insurance business(ii) The number of shares to be acquired and ownership interest after the acquisition
a. The number of shares to be acquired
18,750,000 sharesb. Ownership interest after the acquisition
100% (inclusive of 100% held indirectly)(2) SA Reinsurance Ltd.
(i) Outline of the company
a. Capital¥15,900 million (As of March 31, 2019)b. Business
Reinsurance business(ii) The number of shares to be acquired and ownership interest after the acquisition
a. The number of shares to be acquired
7,950,000 sharesb. Ownership interest after the acquisition
100% (inclusive of 100% held indirectly)

3. Acquisition priceTotal (Approximate amount)¥16,250 million (Including ¥250 million of approximate advisory cost, etc.)
Note: Acquisition price will be determined after making certain adjustments, as necessary.

4. Timing of equity acquisition
Second half of fiscal year 2019 (subject to approval of relevant agencies)

Sony Financial Holdings Inc. Financial Data Book 201927

SFH Consolidated Financial Statements

2 Notes to the Consolidated Statements of Income
Profit attributable to owners of the parent per share is calculated based on the weighted-average number of shares of common
stock outstanding during the period. For the year ended March 31, 2019, net income per share was ¥142.69. The basis for thiscalculation for the year ended March 31, 2019 is profit attributable to owners of the parent of ¥62,074 million, the entire amount of
which is applicable to common stock. The weighted-average number of shares outstanding for the year ended March 31, 2019was 435,016 thousand shares.
Diluted net income per share attributable to owners of the parent was ¥142.67. There was no adjustment to profit attributable toowners of the parent for a basis for calculation, and common stock reflecting the dilutive shares increased by 87 thousand shares.

3 Notes to the Consolidated Statements of Comprehensive Income
Reclassification adjustments and income tax benefit (expense) on components of other comprehensive income for the year ended
March 31, 2019 are as follows:
Millions of yen

2019

For the year ended March 31,

Net unrealized gains (losses) on available-for-sale securities, net of taxes:
Gains (losses) arising during the period
Reclassification adjustments
Pre-tax amount
Income tax benefit (expense)
Net unrealized gains (losses) on available-for-sale securities, net of taxes
Net deferred gains (losses) on hedging instruments, net of taxes:
Gains (losses) arising during the period
Reclassification adjustments
Pre-tax amount
Income tax benefits (expense)
Net deferred gains (losses) on hedging instruments, net of taxes
Remeasurements of defined benefit plans, net of taxes:
Gains (losses) arising during the period
Reclassification adjustments
Pre-tax amount
Income tax benefits (expense)
Remeasurements of defined benefit plans, net of taxes
Share of other comprehensive income of entities accounted for using equity method
Gains (losses) arising during the period
Total other comprehensive income(2,805)(3,947)(6,752)
1,537(5,215)954(1,205)
(251)
76
(174)
(117)
750
633
(177)
456
23
(4,909)4 Notes to the Consolidated Statements of Changes in Net Assets

1. Types and numbers of shares issued are as follows
Thousands of shares

2019

For the year ended March 31,

Issued shares
Common stock
Total
Treasury stock
Common stock
Total

Number of shares
Number of shares as increased duringof April 1, 2018
the period
435,027
435,027

35
35

Number of shares
decreased during Number of shares as
the periodof March 31, 2019̶
̶435,062435,062

̶
37
̶
37
Notes: 1. The increase of 35 thousand shares in common stock (of shares outstanding) was due to exercise of subscription rights to shares(stock options) involving 7 thousand shares and allocation of 27 thousand shares of restricted stock by resolution of the Board of
Directors.
2. The increase of 1 thousand shares in common stock (of treasury stock) was due to acquiring, without consideration, a part of thecommon stock allocated to executive officers of SFH subsidiaries as restricted stock compensation.

28

Sony Financial Holdings Inc. Financial Data Book 2019

35
35

1
1

SFH Consolidated Financial Statements

2. Information on stock acquisition rights is as follows:
SFH

Detail of stock acquisition rights

Balance as of March 31, 2019
(Millions of yen)

Stock acquisition rights as stock options

149

3. Information on dividends is as follows:(1) Dividends paid
Resolution

Type of shares

Aggregate amount Cash dividends perof dividends
share

Ordinary General
Meeting of
Shareholders
held on June 22,
2018

Common stock¥26,099 million¥60

Record date

Effective date

March 31, 2018

June 25, 2018

Record date

Effective date

March 31, 2019

June 24, 2019(2) Dividends to be paid in the next fiscal year
Resolution

Type of shares

Ordinary General
Meeting of
Shareholders
held on June 21,
2019
Common stock

Aggregate amount
Cash dividends perof dividends
Source of dividends
share¥27,189 million Retained earnings¥62.5

5 Notes to the Consolidated Statements of Cash Flows

1. The reconciliation of cash and cash equivalents in the statement of cash flows to cash and due from banks as stated in the consolidated balance sheet as of March 31, 2019 is as follows:

Millions of yen
For the year ended March 31,

2019

Cash and due from banks

415,894

Call loans of life insurance subsidiary

93,700Cash and cash equivalents

509,594

2. Cash flows from investing activities include cash flows from lending operations of the insurance business.

Sony Financial Holdings Inc. Financial Data Book 201929

■ Sony Life

Financial Data (Non-consolidated)
Balance Sheets
Sony Life Insurance Co., Ltd.
As of March 31, 2018 and 2019

Millions of yen, %
2019

2018
AmountComposition

AmountComposition

AssetsCash and deposits
Cash

0.6%

̶

82,0460.8%

̶82,046

Deposits

53,683

Call loans

65,5000.7

93,700

Money held in trust

270,582

2.8

269,387

2.6

8,765,967

91.6

9,523,877

91.8

Securities
Japanese government bonds

1,543

448

461,015536,373

Japanese stocks

88,37649,381

Foreign securities

959,188

1,262,611

Other securities

289,408

Loans
Policy loans

189,486

318,971
2.0

Commercial loans

25
93,169198,41041

1.0

91,577

Land

62,25962,259Buildings

30,08728,544

Leased assets

520Construction in progress̶̶

Other tangible fixed assets

816

752

Intangible fixed assets
Software
Other intangible fixed assets

23,2101.9

198,369

189,460

Tangible fixed assets

0.9

7,356,090

6,966,434

Japanese corporate bonds

Japanese local government bonds

0.2

26,352

23,201

26,352

8

̶

0.9

0.3

Due from agencies

̶

̶

̶

̶

Due from reinsurers

929

0.0

1,036

0.0

92,1841.0

81,154

0.8

Other assets

39,287

Other receivables

37,411

Prepaid expenses

1,983

2,345

Accrued income

19,627

21,941

Money on deposits

5,428

5,580

Initial margins of futures markets

18,324

3,279

892

72

7,969

448

̶

7,410

Advance payments

470

718

Others75

Variation margins of futures markets
Derivatives
Cash collateral paid for financial instruments

Prepaid pension costs

2,483

Deferred tax assets

71
0.0

2,629

0.0

10,7870.1

14,2480.1

Reserve for possible loan losses

(295)

(0.0)

(623)

(0.0)

Reserve for investment losses̶̶

(3,650)(0.0)

9,567,689

100.0

10,380,148

100.0

Total Assets

30

53,683

Sony Financial Holdings Inc. Financial Data Book 2019

■ Sony Life Financial Data (Non-consolidated)

Millions of yen, %
2019

2018

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
Lease obligations
Asset retirement obligations
Suspense receipt
Reserve for employeesʼ retirement benefits
Reserve for directorsʼ 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

8,606,736

90.0%

89.7%

26,6560.3

9,310,577
37,6109,268,422
4,544
2,073
5,528
469,820
81,474331,055
13,914
2,975
21,071
798
1,321
4,204
753
8,189
22
1,898
2,140
28,002̶̶̶̶

47,929

0.5

0.5
0.0

35,1768,566,075
5,484
1,873

0.0

5,497

0.1

386,099

4.0

31,696
303,889
13,4783,249
20,325
764
1,237
4,202
2,194
1,410
6
1,856
1,787

0.0
0.1
4.5

0.3

109

0.0

50,10550,105
109

9,074,902

94.8

9,866,217

95.0

70,000

0.7

5,865

0.1

0.7
0.1

3.1

70,0005,865
5,865
317,777
40,188277,588
277,5883.9

393,6423.8

47,9295,865
294,424
34,938259,486
259,486

3.1

Total shareholdersʼ equity

370,289

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

124,936

1.3

122,727

1.2(2,439)(0.0)(2,439)(0.0)

122,4971.3

120,288

1.2

492,787

5.2

513,930

5.0

9,567,689

100.0

10,380,148

100.0Land revaluation, net of taxes
Total valuation and translation adjustments
Total Net Assets
Total Liabilities and Net Assets

Sony Financial Holdings Inc. Financial Data Book 201931

■ Sony Life Financial Data (Non-consolidated)

Statements of Income
Sony Life Insurance Co., Ltd.
For the years ended March 31, 2018 and 2019

Ordinary Revenues
Income from insurance premiums
Insurance premiums
Ceded reinsurance commissions

Investment income
Interest income and dividends

Millions of yen
2019

1,351,076

1,464,218

1,059,269

1,136,104

1,056,725

1,132,732

2,544

3,372

243,293278,935

157,727

166,93700140,435

150,733

Interest income from loans

6,610

6,828

Income from real estate for rent

10,285

8,831

Other interest income and dividends

395

543

Income from money held in trust, net

4,490

4,490

Interest income from deposits
Interest income and dividends on securities

Gains on trading securities, net

2̶

Gains on sale of securities

0

6,107

Gains on redemption of securities

1̶Foreign exchange gains, net

̶13,455

Reversal of reserve for possible loan losses

̶

̶

138

̶

80,932

87,944

48,51349,178

Income for annuity riders

5,065

4,027

Proceeds from deferred insurance

39,53743,046

Other ordinary income

3,910

2,104

Other investment income
Gains on separate accounts, net

Other ordinary income

32

2018

Sony Financial Holdings Inc. Financial Data Book 2019

■ Sony Life Financial Data (Non-consolidated)

Ordinary Expenses

2018

Millions of yen
2019

1,294,738

1,384,406

436,538

457,252

Insurance claims

92,342

92,997

Annuity payments

12,566

13,489Insurance benefits

119,294

131,824

Surrender payments

199,263

204,351

Insurance claims and other payments

Refund to policyholders

3,314

3,659

Reinsurance premiums

9,756

10,929Provision for policy reserves and others

638,343704,780

Provision for reserve for outstanding claims

2,211

2,433

636,131702,346

Provision for policy reserves
Interest portion of reserve for policyholdersʼ dividends

00Investment expenses

33,121

24,638Interest expenses

151

1,604

Losses on trading securities, net

̶

126

Losses on sale of securities

034

Losses on valuation of securities

̶

4,026

Losses on redemption of securities

2̶

Losses on derivatives, net

11,403

13,925

Foreign exchange losses, net

15,280̶Provision for reserve for possible loan losses

23

329

Depreciation of real estate for rent and others

1,770

1,599

Other investment expenses

4,487

2,992

Operating expenses

139,937

146,984

Other ordinary expenses

46,79650,750

Deferred insurance payments

25,48728,655

Taxes

12,647

13,419Depreciation and amortization

5,376

6,248

Provision for reserve for employeesʼ retirement benefits

2,981

2,402

Others304

25

Ordinary Profit

56,33879,812

Sony Financial Holdings Inc. Financial Data Book 201933

■ Sony Life Financial Data (Non-consolidated)

Statements of Income (Continued)
Millions of yen
2019

2018
16,898̶

Gains on disposal of fixed assets

13,258̶

Reversal of reserve for investment losses

3,640

̶

6,190

5,929

Losses on disposal of fixed assets

89

63

Impairment losses

039

Provision for reserve under the special laws

1,924

2,175

Provision for reserve for price fluctuations

1,924

2,175

Extraordinary Gains

Extraordinary Losses

4,176

̶

̶

3,650

Provision for Reserve for Policyholdersʼ Dividends

3,271

2,146

Income Before Income Taxes

63,77471,737

Income Taxes - Current

23,22425,328

Income Taxes - Deferred(4,583)(3,194)

Total Income Taxes

18,64022,134Net Income

45,13449,602

Valuation losses on stocks of affiliated companies
Provision for reserve for investment losses

34

Sony Financial Holdings Inc. Financial Data Book 2019

■ Sony Life Financial Data (Non-consolidated)

Statements of Changes in Net Assets
Sony Life Insurance Co., Ltd.
For the years ended March 31, 2018 and 2019

Millions of yen
2018
Shareholdersʼ equity
Capital surplus

Retained earnings
Otherretainedearnings

Balance at the beginning of the period

Legal Unappropriated
Total
Total
Total capital retained
retained shareholdersʼretained
surplusearnings
earnings
equityearnings

Commonstock

Capitalreserve

70,000

5,865

5,865

30,318241,098

271,416

347,281

Changes during the period
Dividends from surplus

̶

̶

̶

4,620

(27,720)(23,100)(23,100)

Net income

̶

̶

̶

̶

45,13445,13445,134

Reversal of land revaluation

̶

̶

̶

̶

973

973

973

Net changes of items other thanshareholdersʼ equity

̶

̶

̶

̶

̶

̶

̶

Total changes during the period

̶

̶

̶

4,620

18,38723,00723,007

Balance at the end of the period

70,000

5,865

5,865

34,938259,486

294,424370,289

Millions of yen
2018
Valuation and translation
adjustments
Net
unrealized
gains(losses) on
Total
availablevaluation
for- saleLandandsecurities,
revaluation, translation
net ofnet of taxes adjustments
taxes

Total net
assets127,772(1,465)

126,307473,589

Dividends from surplus

̶

̶

̶

(23,100)

Net income

̶

̶

̶

45,134

Reversal of land revaluation

̶

̶

̶

973

(2,836)(973)(3,809)(3,809)Total changes during the period(2,836)(973)(3,809)19,198

Balance at the end of the period

124,936(2,439)122,497492,787

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 201935

■ Sony Life Financial Data (Non-consolidated)

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

2019
Shareholdersʼ equity
Capital surplus

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

Capitalreserve

Total
capitalsurplus70,000

5,865

5,865

34,938259,486

294,424370,289

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

393,642

Balance at the beginning of the period
Changes during the period

Millions of yen

2019
Valuation and translation
adjustments
Net
unrealized
gains(losses) on
availableTotal
valuationfor- saleandsecurities,Land
net ofrevaluation, translation Total net
taxes
net of taxes adjustments assets
124,936(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

36

Sony Financial Holdings Inc. Financial Data Book 2019

■ Sony Life Financial Data (Non-consolidated)

Statements of Cash Flows
Sony Life Insurance Co., Ltd.
For the years ended March 31, 2018 and 2019

Millions of yen
2019

2018
Cash flows from operating activities
Income before income taxes
Depreciation of real estate for rent and others
Depreciation and amortization
Impairment losses
Valuation loss on stocks of affiliated companies
Increase (decrease) in reserve for outstanding claims
Increase (decrease) in policy reserves
Interest portion of reserve for policyholdersʼ dividends
Provision for (reversal of) reserve for policyholdersʼ dividends
Increase (decrease) in reserve for possible loan losses
Increase (decrease) in reserve for investment losses
Increase (decrease) in reserve for employeesʼ retirement benefits
Increase (decrease) in reserve for directorsʼ retirement benefits
Increase (decrease) in reserve for price fluctuations
Interest income and dividends(Gains) losses on securities(Gains) losses on derivatives
Interest expenses
Foreign exchange (gains) losses(Gains) losses on disposal of tangible fixed assets(Increase) decrease in due from agencies(Increase) decrease in due from reinsurers(Increase) decrease in other assets (excluding those related to investing and financing activities)
Increase (decrease) in due to agencies
Increase (decrease) in due to reinsurers
Increase (decrease) in other liabilities (excluding those related to investing and financing activities)
Others, net
SubtotalInterest and dividends received
Interest paid
Policyholdersʼ dividends paid
Others, net
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Investments in money held in trust
Proceeds from money held in trust
Purchases of securities
Proceeds from sale and redemption of securities
Investments in loans
Collections of loans
Net gains (losses) from the settlement of derivative financial instruments
Net increase (decrease) in collateral for securities lending transactions
Others, net
Total of net cash provided by (used in) investment transactions[Total of net cash provided by (used in) operating activities and investment transactions]Purchases of tangible fixed assets
Proceeds from sales of tangible fixed assets
Purchase of securities of subsidiaries
Purchase of securities of affiliates
Others, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Cash dividends paid
Others, net
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period

63,774
1,770
5,376
0
4,176
2,211
636,13103,271
23(3,640)
1,977
(119)
1,924
(157,727)(81,740)
11,403151
15,280(13,359)
0463
20,226
(743)
1,833
(876)
724
512,516
164,864(152)(3,517)(3,358)(17,840)
652,511(101)
4,532(842,838)
223,951(60,315)
28,760(22,997)
25,800̶

71,737
1,599
6,248
39
̶

2,433
702,346
0
2,146
328
3,650
1,346
̶

2,175
(166,937)(91,847)
13,925
1,604(13,455)
38
̶

(106)
22,454
200
30
1,105
517
561,581
171,437(1,604)(3,086)(5,793)(24,893)
697,641(101)
4,522(961,067)
303,034(63,616)
30,341
7,389
75,306125(604,066)[93,574](572)(643,206)[9,305](760)
36,700(339)(3,450)(8,080)(619,136)

(50)
(300)
(9,833)(614,823)(23,100)(5)(23,105)(2)
10,267
108,916
119,183(26,250)(4)(26,254)
056,563
119,183
175,746̶Sony Financial Holdings Inc. Financial Data Book 201937

■ 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 staff as a defined benefit plan. A defined benefit corporate
pension plan is provided to internal office staff 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

2018
39,6924,401
90
282(2,502)
41,9642019
41,964
4,558
95
117(3,376)43,359(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

201813,825
138
556
1,110
(258)
15,371

2019
15,371
153
35
1,201
(567)
16,195(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

2018
2019
11,620 12,239(15,371) (16,195)(3,751) (3,955)
30,344 31,120(2,419) (1,791)
24,172 25,373

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

26,656(2,483)24,172

Funded retirement benefit obligations
Plan assets

28,002(2,629)25,373(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

38

Sony Financial Holdings Inc. Financial Data Book 2019

2018
4,401
90
(138)
871
49
5,274

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

■ 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

2018
68%
29%
3%
100％

2019
67%
30%
3%
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:
2018

2019

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

0.2%
0.3%
1.0%

0.1%
0.3%
1.0%

3. Defined contribution plan
The amounts of contribution required for defined contribution plans by Sony Life were ¥103 million and ¥111 million for the year
ended March 31, 2018 and 2019, respectively.

(Tax effect accounting)
As of March 31, for the year ended March 31,
1. For the fiscal year ended March 31, 2018, the total amount of deferred tax assets was ¥63,744 million, while the total amountof deferred tax liabilities was ¥48,972 million. Of the deferred tax assets, the amount deducted as valuation allowance was¥3,984 million.
The breakdown of major factors giving rise to the deferred tax assets is policy reserves and others of ¥30,950 million, areserve for price fluctuations of ¥13,420 million, a reserve for employeesʼ retirement benefits of ¥6,768 million, and excess
depreciation and amortization of ¥3,275 million.
The major factor giving rise to the deferred tax liabilities is net unrealized gains on available-for-sale securities of ¥48,409
million.
For the fiscal year ended March 31, 2019, the total amount of deferred tax assets was ¥68,594 million, while the total amountof deferred tax liabilities was ¥48,776 million. 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.
2. The statutory effective tax rate in the fiscal year ended March 31, 2018 was 28.24%, registering a minimal difference between
the statutory effective tax rate and the effective income tax rate after application of tax effect accounting.
The statutory effective tax rate in the fiscal year ended March 31, 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.

Sony Financial Holdings Inc. Financial Data Book 201939

■ 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[% to total]
Normal loans
Total

2018
̶
̶
̶
̶
[̶]

428,359
428,359

Millions of yen
2019
0
̶
̶

0
[0.0]
461,094
461,094

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 (excluding loans described innotes 1. and 2. above) and 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 loans described in notes 1. and 2. above and loans on which principal and/orinterest are past due for three months or more).
4. Normal loans are loans that do not fall under the classifications for 1. to 3. above and where the borrowers have no financial or
business performance problems.

2

Risk-monitored Loans

As of March 31,

2018

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

̶
̶
̶
̶
̶
[̶]

Millions of yen,%
2019
̶

0

̶
̶

0
[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

40

Sony Financial Holdings Inc. Financial Data Book 2019

2018
8,542
278
1,464
1,234
2,834
14,354600
8,734
10,709641
35,176

Millions of yen
2019

8,262
282
1,182
1,419
2,920
14,067674
9,924
11,948878
37,610■ 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
2019

8,128,998
7,183,813
945,184
337,064
175,320
161,74360
60

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

̶

10,037
10,037
̶
̶
̶
̶

̶

8,664
8,664
̶
̶
̶
̶

8,476,160
7,369,232
1,106,927
89,9158,566,075
7,459,147
1,106,927

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

2018
8,238,862
237,297

Millions of yen
20198,925,064
244,744

Breakdown of policy reserves

As of March 31,

Premium reserve
Unearned premiums
Refund reserve
Contingency reserve
Total

3-04

2018

̶

89,9158,566,075

̶98,613
9,268,422

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

2018

2019

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 additionallyreserved to maintain the future soundness of certain policies.

Sony Financial Holdings Inc. Financial Data Book 201941

■ Sony Life Financial Data (Non-consolidated)

Balance of policy reserves by contract 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
FY2014FY2015FY2016FY2017FY201834,21853,353591,6131,140,570
1,432,205
1,889,688
444,299
487,912442,683
351,939
336,777
232,245
225,528
218,905

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

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, calculating 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
2019
125,5742018
107,211

As of March 31,

Balance of policy reserves

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.

Calculating 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
Calculating 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
2018

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

42

Individual life
insurance

Asset-formation
insurance,
asset-formation
annuities

Individual
annuities

Group life
insuranceGroupannuities

1,859
0

270
0

3,525

74
̶

̶
̶

̶
̶

5,729
0

103
121
1,877
[1,392]

21
55
305
[156]

3,319
3,090
3,296
[0]

74
3
4
[̶]

̶
̶
̶
[̶]

̶
̶
̶
[̶]

3,517
3,271
5,484
[1,549]Sony Financial Holdings Inc. Financial Data Book 2019̶

OthersTotal

■ Sony Life Financial Data (Non-consolidated)

Millions of yen

2019

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

1,877
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][̶]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

0

(0)

0

2

2

270

294

23

294

620

326

̶

̶
̶

̶

̶

(3,640)

̶
̶

̶

3,640

3,650

3,650

24,67826,656

1,977

26,65628,002

1,346

119
46,005

̶

(119)
1,924

̶

̶

̶

47,92947,92950,1052,175

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

2019
Balance atBalance atthe beginning the end ofof the period the period

2018
Balance atthe end of
the period

Insurance premiums
Millions of yen
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

2018996,545
75,893262,938
11,049646,664
53,79325,746
5,328
347
22,3706,255
1301,056,725

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
2018

For the years ended March 31,

Death benefits
Accidental benefits
Disability payments
Maturity benefits
Others
Total

Total
51,509496
2,799
24,424
13,112
92,342

2019
Asset-formation
insurance,
Individual life Individual Group life
Group asset-formation
annuities
insurance annuities insurance annuities̶̶̶
50,919
1,766
̶
̶
̶
̶
621
̶
̶
̶
2,762
92
̶
̶
̶
̶
22,781̶̶̶
13,850202̶̶̶
90,935
2,061

Others

̶
̶
̶
̶
̶
̶

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

Sony Financial Holdings Inc. Financial Data Book 201943

■ Sony Life Financial Data (Non-consolidated)

3-10

Annuity payments
Millions of yen

2019

2018

Asset-formation
insurance,
Individual life Individual Group life
Group asset-formation
Total
annuities
insurance annuities insurance annuities̶̶
12,566
12,0891
1,397

For the years ended March 31,

Annuity payments

3-11

Others̶

Total
13,489Insurance benefits
Millions of yen

2019

2018

For the years ended March 31,

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

3-12

Total
2,706
9,574
10,317150
85,015
11,530119,294

Asset-formation
insurance,
Individual life Individual Group life
Group asset-formation
annuities
insurance annuities insurance annuities
̶
̶
̶
2,847
94
̶
̶
̶
9,792
0
̶
̶
̶
̶
10,730
̶
̶
̶
149
0
̶
̶
̶
̶
96,034̶̶
11,414629
130
̶
130,968724
0
130

Others

̶
̶
̶
̶
̶
̶
̶

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

Surrender payments
Millions of yen

2019

2018

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
199,263
196,302
8,048

Others̶

Total
204,351

Depreciation and amortization
Millions of yen, %

2019

2018

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
8,483
523
2,788
5,694 32.9%
9,392
562 3,570 5,821 38.0%
6,785
361
1,839
4,946 27.1
7,612
390 2,508 5,103 33.0
23
4
17
5 74.6
21
4
0
20
2.4
1,674
156
931
742 55.6
1,759
166 1,061
697 60.4
46,161
4,849 22,959 23,201 49.7
63,864 5,682 37,512 26,352 58.7
15
3
10
5 66.715
3
13
2 84.2
54,6605,376 25,758 28,902 47.1
73,273 6,248 41,096 32,176 56.1

Operating expenses

For the years ended March 31,
Sales and marketing expenses
Sales administrative expenses
General administrative expenses
Total

2018
64,566
19,82455,547
139,937

Millions of yen
2019
68,562
19,02459,397
146,984

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:44

For the years ended March 31,

2018

Millions of yen
2019Life Insurance Policyholders Protection Corporation of Japan

751

787

Sony Financial Holdings Inc. Financial Data Book 2019

■ Sony Life Financial Data (Non-consolidated)

4 Reconciliation to Core Profit and Non-consolidated Ordinary Profit
201881,384
9,894

For the years ended March 31,（A）
Core profit
Capital gains
Income from money held in trust, net
Income from 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 profit̶Millions of yen
2019
97,242
19,562
̶

̶

̶

0

6,107

̶

̶

̶

13,455

9,894
27,357

27,847

̶

̶

̶

8
0

144
34
4,026
13,925

̶

11,403
15,280664(17,463)
63,920̶

9,716(8,284)
88,957

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

7,582

9,145

̶

̶

7,451
23

8,698
326

̶

̶

̶

̶

107
(7,582)56,338119(9,145)79,812

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-denominated insurance contracts (Note)
Other capital gains
Effect of change in the exchange rates related to foreign currency-denominated insurance contracts
Other capital losses
Impairment losses from investment partnerships
Effect of change in the exchange rates related to foreign currency-denominated insurance contracts
Other one-time gains
Other one-time losses
Provision of additional policy reserve

2018
4,502
4,490
11

2019
14,224
4,490
17

̶

9,716

9,894

̶

9,894
664
664

9,716

̶

9,716

̶
̶

̶

̶

107
107

119
119

Note: Regarding the effect of change in the exchange rates related to foreign currency-denominated insurance contracts, breakdown of coreprofit has been modified from the fiscal year ended March 31, 2019.
However, this change has no effect on core profit.

Sony Financial Holdings Inc. Financial Data Book 201945

■ Sony Life Financial Data (Non-consolidated)

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

2018Core 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 reserves 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

1,351,085
1,059,269
1,056,725
2,544
238,800
157,72710
138
80,93248,513
5,065
39,5372019
1,454,390
1,136,104
1,132,732
3,372
254,882
166,937̶̶̶

87,944
49,1784,027
43,046

̶

̶

3,910
4,502
1,269,701
436,538
92,342
12,566
119,294
199,2633,314
9,756
640,678
5,749
151
2

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

̶

2
1,599
2,992

1,770
3,823

̶

̶

̶

139,937
46,79625,487
12,647
5,376
2,981
304

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

̶

̶

81,384

97,242

Note: Regarding the effect of change in the exchange rates related to foreign currency-denominated insurance contracts, breakdown of core profit
has been modified from the fiscal year ended March 31, 2019.
However, this change has no effect on core profit.

Reference: 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

46

Sony Financial Holdings Inc. Financial Data Book 2019

2018
17.7
2.22%
1.63%
1.97%

2019
18.2
2.19%
1.94%
1.94%

■ 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-purpose securities
Millions of yen

2019

2018

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

̶Trading-purpose securities

(31)

1,321

(160)

Fair value information on securities
a. Securities with fair value (except trading-purpose securities)
Millions of yen
2018

As of March 31,

Carrying
amountFair value

Net unrealized
gains (losses)

Unrealized
gains

Unrealized
losses

Held-to-maturity securities

6,467,997

8,050,644

1,582,646

1,640,383

57,736

401,958

436,842

34,88435,939

1,055

̶

̶

̶

̶

̶

921,995

1,091,187

169,192

172,541

3,349

Japanese bonds

847,062

1,002,106

155,044

155,044̶Japanese stocks

13,68530,66816,982

17,00825

Foreign securities

61,081

58,125(2,955)

368

3,323

49,39846,689(2,709)

368

3,077
245

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

Bonds
Stocks, etc.

11,682

11,436(245)

̶Other securities

165

286

120

120

̶

Monetary claims purchased

̶

̶

̶

̶

̶

Certificates of deposit

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

Total

7,791,950

9,578,673

1,786,723

1,848,865

62,142

Japanese bonds

7,397,136

9,185,284

1,788,148

1,827,186

39,037

OthersJapanese stocks

13,68530,66816,982

17,00825

Foreign securities

380,962

362,434(18,528)

4,550

23,078

Bonds

369,280

350,998(18,282)

4,550

22,832

Stocks, etc.

11,682

11,436

(245)

̶

245

Other securities

165

286

120

120

̶

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-purpose securities, asof March 31, 2018, amounted to ¥232,484 million and ¥38,552 million, respectively.

Sony Financial Holdings Inc. Financial Data Book 201947

■ Sony Life Financial Data (Non-consolidated)

Fair value information on securities (continued)
Millions of yen

2019
Net unrealized Unrealized
gains
gains (losses)

Unrealized
losses

As of March 31,

Carrying
amountFair value

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

̶

̶

̶

̶

̶

2,140

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

964,854

1,132,524

167,670

169,810

Japanese bonds

867,645

1,024,732

157,086

157,086

̶

Japanese stocks

9,685

19,143

9,458

9,555

96

Foreign securities

2,043

Available-for-sale securities

87,357

88,341

984

3,027

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-purpose securities, asof March 31, 2019, amounted to ¥232,566 million and ¥37,275 million, respectively.

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

̶̶

Others̶̶̶̶

Stocks of subsidiaries and affiliated companies

15,926

16,276

Available-for-sale securities

7,719

5,445

Unlisted Japanese stocks (except OTC stocks)

159

159

Unlisted foreign stocks (except OTC stocks)

590

355

̶

̶

Policy-reserve-matching bonds

Unlisted foreign bonds
Others
Total

48

2019

2018

Held-to-maturity securities

Sony Financial Holdings Inc. Financial Data Book 2019

6,968

4,929

23,64521,721

■ 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
2018
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
amount
6,467,997
401,958
15,926
929,714847,062
13,84561,67149,39812,273
7,134

Fair value
8,050,644
436,842
15,926
1,103,060
1,002,106
30,82859,702
46,68913,013
10,422̶̶Net unrealized
gains (losses)
1,582,646
34,884

Unrealized
gains
1,640,383
35,939Unrealized
losses57,736
1,055

̶

̶

̶

173,345
155,044
16,982(1,968)(2,709)740
3,287

176,918
155,044
17,008
1,354
368
986
3,510

3,572

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

7,815,596
7,397,136
21,482389,842369,280
20,562
7,134

9,606,473
9,185,284
38,464372,301
350,998
21,302
10,422

1,790,876
1,788,148
16,982(17,541)(18,282)740
3,287

1,853,241
1,827,186
17,008
5,536
4,550
986
3,510

62,36539,037
25
23,07822,832
245
222

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

25
3,323
3,077
245
222

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
OthersNet unrealized Unrealized
gains
gains (losses)
2,030,838
2,051,389
83,52583,7334
4
170,869
173,361
157,086
157,086
9,458
9,555
2,154
4,198
2,243
3,027
(88)
1,170
2,170
2,521

Unrealized
losses
20,551
208

Carrying
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

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

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

Sony Financial Holdings Inc. Financial Data Book 201949

■ Sony Life Financial Data (Non-consolidated)

5-02

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

2019

2018

As of March 31,

Money held in trust

Net
Net
Balanceunrealized
unrealized
Balancesheet
gains Unrealized Unrealized sheet
gains Unrealized Unrealized
Fair
gains
lossesamount Fair value (losses)(losses)amountvalue
gains
losses̶̶̶ 269,387 269,387
̶̶̶
270,582 270,582

Note: The above tables include jointly invested money held in trust, which amounted to ¥40 million as of March 31, 2018 and ¥40 million asof March 31, 2019, 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

2019

2018

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
231,989 270,541

5-03

Fair
value

Net
unrealized
gains Unrealized Unrealized(losses)
gains
losses

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

38,55238,552

̶ 232,071 269,346

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

2019

2018

As of March 31,

Interest
rate- Currency- Stockrelated related relatedInterest
Bondrate- Currency- Stock- Bondrelated Others Total related related related related Others Total

Hedge accounting is applied

̶

̶

̶

̶

̶

̶

̶

Hedge accounting is not applied

̶

5,772

786

̶

̶

6,559

Total

̶

5,772

786

̶

̶

6,559

̶

̶

̶

̶

̶

(409) (7,331)̶̶ (7,741)

̶(409) (7,331)̶̶ (7,741)

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

50

Sony Financial Holdings Inc. Financial Data Book 2019̶■ Sony Life Financial Data (Non-consolidated)

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

2019

2018

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
153,617

̶

5,775

5,775

21,154

̶

(409)

(409)

U.S. dollars

124,094

̶

4,572

4,572

12,740

̶

(354)

(354)

Euro

29,522

̶

1,203

1,203

8,413

̶

(54)

(54)

Bought

172

̶

(3)

(3)

̶

̶

̶

̶

172

̶

(3)

̶

̶

̶

̶

Sold

U.S. dollars

(3)

Total

(409)

5,772

Notes: 1. The fair value of forward foreign exchanges is calculated using the discounted present value based on the fiscal year-end interestrate.
2. Fair value is also shown in the column under “Valuation gains (losses).”

4. Stock derivatives
Millions of yen

2019

2018

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

106,875

̶

786

̶

̶

̶

786

58,724

̶308

̶

63,107

̶(7,640)308Over-the-counter transactions
Total return swap
Sold
Total

(7,640)(7,331)

786

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. Fair value is also shown in the column under “Valuation gains (losses).”

5. Bond derivatives
Not applicable
6. Others
Not applicableSony Financial Holdings Inc. Financial Data Book 201951

■ 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-purpose securities
Millions of yen

2019

2018

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

Trading-purpose securities

1,048,062

36,944

1,185,507

30,070Fair value information on securities
a. Securities with fair value (except trading-purpose securities)
Millions of yen
2018

As of March 31,

Carrying
amountFair value

Net unrealized
gains (losses)

Unrealized
gains

Unrealized
losses

Held-to-maturity securities

6,467,997

8,050,644

1,582,646

1,640,383

57,736

401,958

436,842

34,88435,939

1,055

̶

̶

̶

̶

̶

921,995

1,091,187

169,192

172,541

3,349

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

52

Japanese bonds

847,062

1,002,106

155,044

155,044̶Japanese stocks

13,68530,66816,982

17,00825

Foreign securities

61,081

58,125(2,955)

368

3,323

Bonds

49,39846,689(2,709)

368

3,077

Stocks, etc.

11,682

11,436

(245)

̶

245

Other securities

165

286

120

120

̶

Monetary claims purchased

̶

̶

̶

̶

̶

Certificates of deposit

̶

̶

̶

̶

̶

Others

̶

̶

̶

̶

̶

Total

7,791,950

9,578,673

1,786,723

1,848,865

62,142

Japanese bonds

7,397,136

9,185,284

1,788,148

1,827,186

39,037

Japanese stocks

13,68530,66816,982

17,00825

Foreign securities

380,962

362,434(18,528)

4,550

23,078

Bonds

369,280

350,998(18,282)

4,550

22,832

Stocks, etc.

11,682

11,436

(245)

̶

245

Other securities

165

286

120

120

̶

Monetary claims purchased

̶

̶

̶

̶

̶

Certificates of deposit

̶

̶

̶

̶

̶

Others

̶

̶

̶

̶

̶

Sony Financial Holdings Inc. Financial Data Book 2019

■ Sony Life Financial Data (Non-consolidated)

Fair value information on securities (continued)
Millions of yen

2019
Net unrealized Unrealized
gains
gains (losses)

Unrealized
losses

As of March 31,

Carrying
amountFair value

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

̶

̶

̶

̶

̶

2,140

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

964,854

1,132,524

167,670

169,810

Japanese bonds

867,645

1,024,732

157,086

157,086

̶

Japanese stocks

9,685

19,143

9,458

9,555

96

Foreign securities

2,043

Available-for-sale securities

87,357

88,341

984

3,027

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. The carrying amount and net unrealized gains (losses) on money held in trust, including items other than trading securities,
amounted to ¥232,484 million and ¥38,552 million, respectively, as of March 31, 2018 and ¥232,566 million and ¥37,275 million,
respectively, as of March 31, 2019.

○ Held-to-maturity securities

Millions of yen

2019

2018

Difference

Balancesheet
amountFair value Difference

1,640,383

6,477,032

8,528,421

2,051,389

7,285,480

1,636,421

6,270,702

8,311,604

2,040,902

67,322

3,962

206,330

216,817

10,487

̶

̶

̶

̶

̶

̶

755,577

697,840(57,736)

292,976

272,425(20,551)

Japanese bonds

513,318

475,204(38,113)103,822

97,983(5,839)Foreign securities

242,259

222,636(19,623)

189,153

174,441(14,711)

̶

̶

̶

̶

̶

̶

As of March 31,

Balancesheet
amountFair value

Fair value exceeding balance sheet amount

5,712,419

7,352,803

Japanese bonds

5,649,059

Foreign securities

63,360

Other securities
Fair value not exceeding balance sheet amount

Other securities

Sony Financial Holdings Inc. Financial Data Book 201953

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

Millions of yen

2019

2018

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
amount346,779
340,492
6,286

Fair value382,719376,212
6,506

Difference
35,93935,720219

Balancesheet
amount662,919
600,83962,079Fair value Difference
746,652
83,733
680,444
79,60566,207
4,128

̶

̶

̶

̶

̶

̶

55,17947,203
7,975

54,123
46,2797,843(1,055)
(924)
(131)

17,83815,0872,751

17,62914,894
2,735

(208)
(192)
(15)

̶

̶

̶

̶

̶

̶

Carrying
amount2018
Balancesheet
amountDifference

Carrying
amount2019
Balancesheet
amountDifference

868,385
847,062
13,3847,772
165

1,040,926
1,002,106
30,392
8,140
286

172,541
155,044
17,008368
120

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

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

53,61050,260(3,349)34,47232,332(2,140)

̶

̶

̶

̶

̶

̶

301
53,308275
49,984(25)(3,323)908
33,563811
31,520(96)(2,043)

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

○ 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
Othersb. 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
OthersTotal

54Sony Financial Holdings Inc. Financial Data Book 2019

Millions of yen
2019

2018
̶

̶

̶

̶

̶

̶

̶

̶

15,926
7,719
159
590

16,276
5,445
159
355

̶

̶

6,968
23,645

4,929
21,721

■ 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
2018
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
amount
6,467,997
401,958
15,926
929,714847,062
13,84561,67149,39812,273
7,134

Fair value
8,050,644
436,842
15,926
1,103,060
1,002,106
30,82859,702
46,68913,013
10,422̶̶Net unrealized
gains (losses)
1,582,646
34,884

Unrealized
gains
1,640,383
35,939Unrealized
losses57,736
1,055

̶

̶

̶

173,345
155,044
16,982(1,968)(2,709)740
3,287

176,918
155,044
17,008
1,354
368
986
3,510

3,572

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

7,815,596
7,397,136
21,482389,842369,280
20,562
7,134

9,606,473
9,185,284
38,464372,301
350,998
21,302
10,422

1,790,876
1,788,148
16,982(17,541)(18,282)740
3,287

1,853,241
1,827,186
17,008
5,536
4,550
986
3,510

62,36539,037
25
23,07822,832
245
222

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

25
3,323
3,077
245
222

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
OthersNet unrealized Unrealized
gains
gains (losses)
2,030,838
2,051,389
83,52583,7334
4
170,869
173,361
157,086
157,086
9,458
9,555
2,154
4,198
2,243
3,027
(88)
1,170
2,170
2,521

Unrealized
losses
20,551
208

Carrying
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

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

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

Sony Financial Holdings Inc. Financial Data Book 201955

■ 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
2018
2019
Net
Net
unrealized
Balanceunrealized
Balancegains Unrealized Unrealized sheet
sheet
gains Unrealized Unrealized
Fair
gains
lossesamount Fair value (losses)
amountvalue (losses)
gains
losses̶̶̶ 269,387 269,387
̶̶̶
270,582 270,582

Note: The above tables include jointly invested money held in trust, which amounted to ¥40 million as of March 31, 2019 and ¥40 million asof March 31, 2018.

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,

2018
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
231,989 270,541

6-03

Millions of yen
2019
Net
unrealized
gains Unrealized Unrealized
Fairvalue (losses)
gains
losses

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

38,55238,552

̶ 232,071 269,346

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 conductedby the division in charge of investment, the administrative division receives reports directly from the 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 derivative transactions is conducted strictly by the department in charge of supervision. Also, the risk management division regularly reports the overall risk status toSony 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
2018
2019
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 is̶ 5,772̶̶ 6,559̶̶̶ (7,741)
786(409) (7,331)
not applied̶ 5,772̶̶ 6,559̶̶̶ (7,741)
Total
786(409) (7,331)
Note: Valuation gains (losses) on derivatives to which hedge accounting is not applied are recorded in the statements of income.

56

Sony Financial Holdings Inc. Financial Data Book 2019

■ 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

2019

2018
As of March 31,

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

Notional
amountOver 1 year Fair value
total

153,617
124,094
29,522
172
172

̶
̶
̶
̶
̶

5,775
4,572
1,203
(3)
(3)

Valuation
gains(losses)

5,775
4,572
1,203
(3)
(3)
5,772

Valuation
Notional
gains
amounttotal
Over 1 year Fair value (losses)
21,154
12,740
8,413
̶
̶

̶
̶
̶
̶
̶

(409)
(354)
(54)
̶
̶

(409)
(354)
(54)
̶
̶

(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. Fair value is also shown in the column under “Valuation gains (losses).”③ Stock derivatives

Millions of yen

2019

2018
As of March 31,

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

Notional
amountOver 1 year Fair value
total

106,875

̶

786

̶

̶

̶

Valuation
gains(losses)

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

786

58,724

̶

308

308

̶

63,107

̶(7,640)(7,640)(7,331)

786

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. Fair value is also shown in the column under “Valuation gains (losses).

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 applicableSony Financial Holdings Inc. Financial Data Book 201957

■ Sony Life

Performance Indicators (Non-consolidated)
1

Key Performance Indicators for Past Five Years
Millions of yen

For the years ended March 31,

2015

2016

2017

2018

2019

42,430,898

44,749,196

47,185,239

49,173,547

51,474,244

40,391,018

42,293,769

44,313,382

45,892,442

47,676,209

Individual annuities

597,682

856,0621,020,810

1,360,998

1,894,670

Group life insurance

1,442,198

1,599,364

1,851,046

1,920,106

1,903,365

Policy amount in force for group annuities

17,21013,093

11,57010,037

8,664

Annualized premiums from insurance
in force

735,728

781,315820,856

848,823

889,347

Policy amount in force
Individual life insurance

Medical protection, living benefit
protection and other products

172,800

179,707

187,449

191,895

197,520

4,776,917

5,152,456

5,004,921

5,346,249

6,177,542

4,625,700

4,871,062

4,765,257

4,912,156

5,573,556

Individual annuities

145,926

280,332

192,247

375,820576,937

Group life insurance

5,291

1,061

47,41558,272

27,04976,61285,01878,12773,07387,91815,285

15,717

15,71812,984

15,251

New policy amountIndividual life insurance

Annualized premiums from new policies
Medical protection, living benefit
protection and other products

1,223,827

1,230,141

1,243,739

1,351,076

1,464,218

Income from insurance premiums

914,034

1,028,048

956,733

1,059,269

1,136,104

Investment income

280,148

170,517245,339

243,293278,935

1,144,162

1,169,348

1,183,558

1,294,738

1,384,406

382,902363,370

372,407436,538

457,252

Investment expenses

9,727

23,39936,19633,121

24,638Operating expenses

Ordinary revenues

Ordinary expenses
Insurance claims and other payments

115,603

133,334

137,094

139,937

146,984

Ordinary profit

79,66560,79260,18056,33879,812

Net income

42,52437,09635,18545,13449,602

Core profit

76,50543,01983,831

81,384

97,242

Common stock
Shares issued and outstanding(thousands of shares)

70,00070,00070,00070,00070,00070,00070,00070,00070,00070,0007,301,350

8,035,408

8,873,613

9,567,689

10,380,148

793,344

850,323

989,605

1,128,817

1,300,701

6,727,241

7,336,533

7,929,944

8,566,075

9,268,422

162,399

171,649

180,374

189,486

198,410

Securities

6,543,703

7,273,361

8,093,192

8,765,967

9,523,877

Solvency margin ratio

2,555.0%

2,722.8%

2,568.8%

2,624.3%

2,590.5%

Number of employees

6,781

7,289

7,865

8,246

8,461

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.).

58

Sony Financial Holdings Inc. Financial Data Book 2019

■ 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

7,316,968
252,658̶̶

2018
Comparison to
March 31, 2017 Amount
102.9%
128.5
̶̶

Millions of yen, %2019
Comparison toComparison toComparison to
March 31, 2017 Number March 31, 2018 Amount March 31, 2018

45,892,442
1,360,998
1,920,106
10,037103.6%
133.3
103.7
86.8

7,513,563
334,433̶̶

102.7% 47,676,209
132.4
1,894,670
̶
1,903,365
̶
8,664

103.9%
139.2
99.1
86.3

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, %2018

For the year ended March 31,

Individual life insurance
Individual annuities
Group life insuranceGroup annuities

Number
478,994
61,374̶̶Comparison toprevious year
100.0%
177.9
̶̶

Amount
4,912,156
375,820
58,272̶Comparison toprevious year
103.1%
195.5
122.9
̶

Amount, ofwhich, newpolicies
4,912,156
375,820
58,272

Amount, ofwhich, increase
from conversion
̶
̶
̶
̶

̶

Millions of yen, %2019

For the year ended March 31,

Individual life insurance
Individual annuities
Group life insuranceGroup annuities

Comparison toprevious year
Number
520,620108.7%
88,566
144.3
̶
̶

̶
̶

Amount, ofAmount, ofComparison to which, new which, increase
policiesfrom conversion
previous year
Amount̶
5,573,556
113.5%
5,573,556
̶576,937
153.5
576,937
̶
27,04946.4
27,049̶̶̶̶Notes: 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

2018
Comparison to
AmountMarch 31, 2017
807,437102.6%
41,386122.3
848,823103.4
191,895
102.4

Millions of yen, %2019
Comparison to
March 31, 2018
Amount836,267
103.6%
53,079128.3
889,347104.8
197,520
102.9

2018
Comparison to
Amountprevious year
63,875
87.8%
9,197
172.2
73,073
93.5
12,984
82.6

Millions of yen, %2019
Comparison toprevious year
Amount
74,702116.9%
13,216
143.7
87,918120.3
15,251
117.5

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.).

Sony Financial Holdings Inc. Financial Data Book 201959

■ 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
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

2019

2018
NumberAmountNumberAmount

5,625,189
843,324
206,545

42,367,088
4,366,744
1,611,986

5,814,145
836,700
273,462

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

14,31864,95532,836

161,518

29,567
13,566
337,508
1,157
511,912
3,707
12,648514,507
140,376
6,176
331,719
2,115
75,96068,46586,41475,201

156,645
117,483
2,637,306
10,4982,776,525
6,358
71,545
1,725,310
561,546
299,791
8,518,053
24,842
1,498,413
1,254,506
751,283
628,764

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

23,627

280,512

46,685539,915

16,646
19,43640,14917682,498
328,979
933,000
2,735

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

64,9683,199,331

65,1773,221,774

987
5,714

37,903
231,994

1,149
5,690

43,497
233,747

52,3681,002,448

54,1091,051,221

1,130

19,7201,475

26,435

̶

̶

2,922

547

25,367
129,863
21,389209,291
83,30527,384
1,618,418

19,738480,217
3,952
27,344
7,135

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

9,905
40
[508,347]
465,044
122,514
13,1074,279
816
7,411,989
1,661,040
438,533
45,58826,535
126,386
21,627208,267
83,411
25,546
1,559,079
78,9209,423
39[486,602]
497,116
152,548
24,157585,456
3,113
4,144
758
6,928,096
1,789,706
569,972
80,847

7,329
251,130
59,826
11,1381,226,735
170,181
1,056,554
7,316,968

43,747935,744
156,895
40,531
1,864,313
184,308
1,680,004
45,892,442

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

79,373
161,507
11,778
252,658

341,258
941,325
78,414
1,360,998

79,100242,958
12,375
334,433

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

117,089
123,250
30,6491,337,163
12
1,608,163

159,095
68,45088,614
1,603,943
3
1,920,106

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

20,54455,42575,96989
9,948
10,037

8,665
38,125
46,790

84
8,579
8,664

̶

̶
̶

̶

609,931

̶

̶
̶

̶
̶

̶

̶
̶

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.

60

Sony Financial Holdings Inc. Financial Data Book 2019

■ Sony Life Performance Indicators (Non-consolidated)
New policy amount by productMillions of yen
2019

2018
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
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

NumberNumberAmountAmount390,191
15,67079,9194,659,997
68,146
616,764

435,999
11,99872,322

5,311,248
53,113
534,509

14,35567,544

18,777

93,33729,783

163,31958,758329,438

2,955

13,944

1,822

9,104

(6)
400

(26)
532
̶

(1)
8

̶

(14)
9

3,035
13,641
5,101
55,75910,58654,155265,537
1,802,802

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

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

3,364
5,237
8,108
29,286

68,408143,067
55,315236,295

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

92,810191,92147,454
224,307

23,949284,929

24,254

283,816690

36,751

1,316

59,5405,643

274,162

4,336

207,090300
1,631

10,871
65,539

227
487

8,143
19,3995,906

136,173

6,656

162,980

521

8,549

448

8,552

̶
̶

̶

̶

̶
̶
̶

̶
̶

̶

̶
̶
̶

̶
̶

̶

̶
̶
̶

̶
̶

̶

̶

̶
̶
̶

̶

̶

2,922

547

2,927
1,139

2,262
3,961

2,586
754

1,934
2,960

1,826
7,993
5,746
1,154
64,159

124
775
475

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

76
579
313

4,130
3,137

̶
̶
̶

̶

11,044

̶
̶
̶

̶
̶

̶

̶
̶

[12,018]
51,932
29,744
7,299

257,984
211,940
127,437
24,638[13,497]
60,79934,575
11,350321,504
233,838
143,980
35,154

2,124
10,441905
1,419
36,87136,871

15,39336,6543,569
4,246
40,21840,218478,994

4,912,156

2,391
9,866
850
1,767
23,822
23,823(1)
520,620

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

1,260
60,114

4,158
371,662

2,002
86,564

6,676
570,261

61,374

375,820

88,566576,937

̶

̶

̶

̶

̶

̶

̶

̶

610
18,8452,725
55,547

715
7,701
9,981

48
2,877
24,123

19,45558,272

18,397

27,049

̶
̶
̶
̶
̶

̶
̶
̶
̶
̶

̶
̶
̶
̶
̶

̶
̶
̶
̶
̶

̶
̶

̶
̶

̶
̶

̶
̶

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 201961

■ 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
2018

2019

44,028,129[296,045]
1,920,103

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

45,948,233

47,759,561[5,940,789][6,157,420]

[327]

[317]

[5,941,116][6,157,737][1,114,008][1,048,780][1,114,008][1,048,780]

1,864,313
1,283,430

1,820,012
1,812,211

3,147,743

3,632,223

̶

̶
̶

̶
̶
̶

̶
̶

̶

̶

̶
̶

̶
̶
̶

̶
̶
̶

[157,039][1][214,623][0][157,041][214,624]

̶

̶

̶
̶

77,5673
10,03787,60882,4581
8,664
91,124[18,209][17,965]

[29]

[34]

[18,239][17,999][18,209][17,965][18,209][17,965][6,934][6,818][6,934][6,818]

̶

̶

̶
̶
̶

̶
̶
̶

̶

̶

̶
̶
̶

̶
̶
̶

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.

62

Sony Financial Holdings Inc. Financial Data Book 2019

■ Sony Life Performance Indicators (Non-consolidated)

2-05

Number of policies in force by insurance function

As of March 31,

2019

2018

Disability protection
754,106

839,097

Individual annuities̶̶Group life insurance

14,685

15,879Individual life insurance̶̶

768,791

854,976

Group annuities
Total, including others
Surgery protection

1,694,041

1,710,024

Individual annuities̶̶Group life insurance̶̶

Individual life insurance̶̶

1,694,041

1,710,024

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,

2019

2018

Pure death-protection insurance
Whole life insurance

9,740,161

10,468,906

̶̶

Term life insurance

19,370,145

20,550,373

Total, including others

42,367,088

44,066,490

Whole life insurance with term rider

Mixed insurance
1,138,227

1,122,485

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

1,661,040

1,789,706

Pure endowment insurance

1,864,313

1,820,012

1,360,998

1,894,670

Rider to cover accidental death

2,968,417

2,846,778

Injury rider

Endowment insurance

Annuity products
Individual annuities
Riders for disaster and disease
2,972,372

2,870,818

Comprehensive protection riders covering hospitalization

409

389

Comprehensive protection riders covering hospitalization for family

15

14

Comprehensive protection riders covering lifestyle-related disease

44

42

Medical treatment rider for adults

1,152

1,093

Medical treatment rider for women

1,200

1,145

13

13

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

268

273

6,922

6,667

̶

104

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 201963

■ 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,

2018

2019

163,604

176,106

Pure death-protection insurance
Whole life insurance̶̶Term life insurance

183,847

197,617

Total, including others

569,974599,582

Whole life insurance with term rider

Mixed insurance
51,27849,758Endowment insurance with term rider̶̶Term life insurance with living benefits̶̶Endowment insurance

Total, including others

73,11475,934

Pure endowment insurance

137,746

134,322

41,38653,079Rider to cover accidental death

1,149

1,099

Injury rider

1,606

1,547

Comprehensive protection riders covering hospitalization

1,599

1,513

Comprehensive protection riders covering hospitalization for family

120

109

Comprehensive protection riders covering lifestyle-related disease

115

108

Medical treatment rider for adults

4,178

3,964

Medical treatment rider for women

3,668

3,492

68

65

Annuity products
Individual annuities
Riders for disaster and disease

Lifestyle diseases medical treatment rider
New medical treatment rider for women27

25

Cancer rider

476

489

5,386

5,182

̶

185

26,601

26,428Rider to cover initial period of hospitalization
Rider to cover hospitalization due to three diseases
Total, including others

Note: Annualized premiums 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.)

2-08

Dividends to policyholders

1. Standard dividend yields for semi-participating individual life insurance andindividual 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%

64Sony Financial Holdings Inc. Financial Data Book 2019

2018

2019

0.70
1.55
1.40

0.65
1.50
1.35

0.35
1.20
1.05

0.30
1.15
1.00

■ Sony Life Performance Indicators (Non-consolidated)

2. The following is an example of policyholder dividends for semi-participating whole life nursing careinsurance (before nursing care annuity payments commence) using figures for the fiscal year ended
March 31, 2019.
<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%
4years28,602
Nov. 2, 2014
1.00
536,45936,459
̶
5,873
Nov. 2, 2013
1.00
6
̶
0
Nov. 2, 2012
1.50
7
̶
0
Nov. 2, 2011
1.50
8
̶
0
Nov. 2, 2010
1.50
9Nov. 2, 2009
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, 2019.
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, 2019 (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 0.60%, using figures for the fiscal year ended March 31, 2019.
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

%
2018
3.6
33.3
3.7
(13.2)

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

2018
10,255
6,272

2019
3.9
39.2
(0.9)
(13.7)

Thousands of yen
2019
10,705
6,345

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

2018
11.1
39.6
3.1

2019
12.1
45.0
1.4

%

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.
%
2018
For the years ended March 31,
2019
Individual life insurance
5.20
6.37
Individual annuities
3.76
3.24
Subtotal
5.17
6.28
Group life insurance
4.84
4.39

Sony Financial Holdings Inc. Financial Data Book 201965

■ 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.
%
2018
For the years ended March 31,
2019
Individual life insurance + Individual annuities
4.97
6.06

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

2018
13,0362019
12,743

2018
1.77
1.59

2019
1.85
1.62

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)

‰

2019

2018
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
0.072
0.103
3.910
38.76417.33449.57213.358

Policy amount
0.106
0.089
97.414627.210445.314

Number ofpolicies
0.116
0.107
3.868
39.29917.95051.34514.430

Policy amount
0.112
0.039
94.632650.664445.180

Operating expense ratio (to insurance premiums)

For the years ended March 31,

Operating expense ratio

%
2018
13.2

2019
13.0

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

Overview of asset management (general account)

Overview of asset management for the fiscal year ended March 31, 2019(1) Investment Environment
During the fiscal year ended March 31, 2019, the Japanese economy registered gradual growth. While capital investment
intended to address labor shortage and to raise productivity was solid, exports decelerated in the second half of the fiscal year
due to U.S.-China trade friction. Nonetheless, the overall economy maintained a growth trend. The consumer price index rosefor 27 consecutive months with a 0.5% increase year on year in core CPI in March. Real GDP growth* year on year for the
October–December quarter was positive 0.5% (annual rate: positive 1.9%). By demand item, private consumption and capital
investment both rose 0.4% and 2.7% year on year, respectively, evidencing that growth was continuing.
In the Japanese bond market, yields on JGBs declined. Yields on 10-year JGBs moved up in the first half of the fiscal year
on the back of the Bank of Japanʼs monetary easing measures revised in July. After that, with heightened concern over deterioration of the world economy due to the effect of U.S.-China trade friction, sentiment of central banks in Europe and the U.S.
turned dovish in response to the outlook. Against this backdrop, investment appetite for JGBs of Japanese and overseas
investors heightened, and the yields trended downward from October 2018 to March 2019. Under these circumstances, thelong-term interest rate as of March 31, 2019 was negative 0.082% (down 0.125 percentage points year on year).
In the stock markets, stock prices dropped during the fiscal year. Stock prices moved within a narrow range in the first halfof the fiscal year on the back of U.S.-China trade friction and currency unrest in emerging nations, however, as these concerns
were eased, stock prices rose in the end of September. This was followed by a downward trend until December 2018, saddledwith the relapse of trade friction and Japan-U.S. trade talks. Toward the end of the fiscal year, deterioration in economic
indicators bottomed out, and excessive anxiety calmed down. Coupled with expectation for the continuation of monetaryeasing policies in Japan, U.S. and Europe, the Nikkei Stock Average rose. As of March 31, 2019, the Nikkei Stock Average was¥21,205.81 (down ¥248.49 from its level on March 31, 2018).
The foreign exchange market showed a yen depreciation against the dollar accompanying a certain swing range. In the firsthalf of the fiscal year, the yen weakened due mainly to the Japan-U.S. interest rate difference. From October 2018 until December 2018, the market moved within a narrow range from ¥112 to ¥114, however, with heightened concerns over U.S.-China
trade friction and corporate performance, the yen appreciated to a level as high as around ¥108 in January 2019. Financial
authorities in Europe and the U.S. later lowered the outlook for the interest rate hike, which fostered a sense of security in themarket, resulting in the yen depreciation trend from January 2019 to March 2019. As of March 31, 2019, the yen was traded at¥110.99 to the U.S. dollar, a depreciation compared with ¥106.24 as of March 31, 2018.
*Second preliminary estimates

66

Sony Financial Holdings Inc. Financial Data Book 2019

■ 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, 2019, general account assets totaled ¥9,079.4 billion, up 7.6%, or ¥640.5 billion, from a year earlier. Within
general account assets, Japanese bonds totaled ¥7,745.3 billion (accounting for 85.3% of total general account assets),
foreign bonds ¥542.1 billion (6.0%), Japanese stocks ¥28.6 billion (0.3%), money held in trust ¥269.3 billion (3.0%), policy
loans ¥198.3 billion (2.2%), real estate ¥90.8 billion (1.0%) and cash and deposits and call loans ¥61.9 billion (0.7%).

Portfolio of general account assets
Components of general account assets

Millions of yen, %

2019

2018
As of March 31,

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

Amount40,862Composition
0.5%

Amount61,997

Composition
0.7%

270,582
7,717,905
7,281,144
38,464
396,910366,571
30,3391,385
189,486
189,460
25
92,346
10,787
117,195(295)
8,438,872
409,863

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

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

̶
̶
̶
̶

̶
̶
̶
̶

̶
̶
̶
̶

̶
̶
̶
̶

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 deposits, call loans
Securities repurchased under resale agreements
Pledged money for bond borrowing transaction
Monetary claims purchased
Securities under proprietary accounts
Money held in trust
Securities
Japanese bonds
Japanese stocks
Foreign securities
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
(33)

2019
21,135(3,295)543,978
452,401
805
91,06492,264(1,199)
(292)
9,112
9,121
(9)
(25,178)
5,437
24,867(23)554,864
100,817(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

2018
̶
̶
̶
̶

̶
̶
̶
̶

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 201967

■ Sony Life Performance Indicators (Non-consolidated)

4-02

Investment yield by type of asset (general account)%

For the years ended March 31,

2018

Cash and deposits, call loans
Securities repurchased under resale agreements
Pledged money for bond borrowing transaction
Monetary claims purchased
Securities under proprietary accounts
Money held in trust
Securities
Japanese bonds
Japanese stocks
Foreign securities
Loans
Commercial loans
Real estate
Total

0.00

2019
0.00

̶

̶

̶

̶

̶

̶

̶

̶

1.93
1.68
1.81
3.22
(1.21)
3.60
0.23
5.86
1.63

1.93
2.11
1.76
32.26
6.39
3.55
0.53
5.81
1.94

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 deposits, call loans
Securities repurchased under resale agreements
Pledged money for bond borrowing transaction
Monetary claims purchased
Securities under proprietary accounts
Money held in trust
Securities
Japanese bonds
Japanese stocks
Foreign securities
Loans
Commercial loans
Real estate
Total
Overseas investment

4-04

68

Millions of yen
53,2492019
62,289

̶

̶

̶

̶

̶

̶

2018

̶

̶

232,243
7,272,160
6,923,514
19,444
328,134
183,551
31
103,115
7,939,778
332,178

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

Investment income (general account)

Millions of yen

For the years ended March 31,

2018

Interest 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

157,727

Sony Financial Holdings Inc. Financial Data Book 20192019
166,937

̶

̶

4,490
2
0
1

4,490

̶

̶

̶

13,455

̶

6,107
̶

̶

̶

138
162,361̶

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
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

2018
151

2019
1,604

̶

̶

̶

̶

̶

126
34
4,026

0
̶

2
11,403
15,28023

̶

13,925
̶

329

̶

̶

1,770
4,487
33,121

1,599
2,992
24,638Interest income and dividends (general account)

For the years ended March 31,

2018

Interest 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

0140,435
125,271566
13,9756,610
10,285
157,727

Millions of yen
2019
0150,733
129,930556
19,906
6,828
8,831
166,937

2018

Millions of yen
2019

4-07

Gains on sale of securities (general account)

For the years ended March 31,

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

4-08

̶

6,107

̶

̶

0

6,107

Losses on sale of securities (general account)
Millions of yen
2019

2018

For the years ended March 31,

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

4-09

0
̶

̶

̶

̶

34
0
34

0
0

Losses on valuation of securities (general account)

For the years ended March 31,

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

Millions of yen
2019

2018
̶

̶

̶

̶

̶

4,026
4,026

̶

Sony Financial Holdings Inc. Financial Data Book 201969

■ 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

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

2018
AmountComposition
6,825,024
88.4%
451
0.0
455,6685.9
387,638
5.0
38,464
0.5
396,9105.1
366,571
4.7
30,339
0.4
1,385
0.0
7,717,905
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
3,309

More than
3 years to
5 years
18,8472018
More than
5 years to
7 years
218,745̶̶

16,631

213,510417,615

6,177,266

6,825,024

̶

̶

̶

̶

̶

451

451

̶
̶

̶
̶

̶
̶

4,925

3,220

447,522
38,464386,297366,571
19,726286

455,668
38,464
396,910366,571
30,3391,385

7,050,288

7,717,905

Within 1 year
5,876

̶

5,476

3,309

1,516

310

5,476
400

3,309

1,516
699

310

5,876

3,309

18,847

218,745

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

̶
̶
̶
̶

̶

̶

̶
̶
̶
̶

̶
̶
̶

̶

̶
̶
̶
̶

More than
7 years to
10 years
420,836

Over 10 years(including nofixed maturity)
7,050,288

Total
7,717,905

̶
̶
̶
̶
̶
̶
̶
̶

420,836

̶
̶
̶

̶
̶
̶

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
4,806
8,828

More than Over 10 years
7 years to (including no
10 years fixed maturity)
Total
392,177 7,602,326 8,339,691

̶

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

̶

4,708

2,790

222

4,708
98

2,790
665

222

4,806

8,828

58,659

̶
̶
̶
̶

̶
̶
̶
̶

̶

̶
̶
̶
̶

̶
̶
̶
̶
̶
̶
̶
̶

272,892

̶
̶
̶
̶
̶
̶
̶
̶

392,177

̶
̶
̶

̶
̶
̶

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.

70

Sony Financial Holdings Inc. Financial Data Book 2019

%
2018
1.82
2.43

2019
1.76
2.55

■ Sony Life Performance Indicators (Non-consolidated)

4-13

Japanese stock holdings by industry (general account)

Millions of yen, %

2019

2018
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

Composition
̶%

Amount

̶

̶
̶

2,003

5.2

1,806

6.3

833

2.2

93

0.3

1,563
1,431

4.1
3.7

808
887

2.8
3.1

171

0.4

143

0.5

358
1,662
5,627
2,566
399
585
512

0.9
4.3
14.6
6.7
1.0
1.5
1.3

277
940
4,969
2,434
730
810

1.0
3.3
17.4
8.5
2.6
2.8

1,821

4.7

1,187

4.2

3,533

9.2

257

0.9

Amount
̶
̶

̶
̶

̶
̶
̶
̶

̶
̶
̶

̶
̶

̶
̶
̶
̶

̶
̶
̶

̶
̶

̶
̶
̶
̶

̶

̶
̶
̶

Composition
̶%
̶

̶
̶

̶
̶
̶
̶

̶

̶
̶
̶

̶

̶

3,433

8.9

106
2,877

0.4
10.1

̶
̶

̶
̶

̶
̶

̶
̶

7,796
1,093

20.3
2.8

8,096
926

28.3
3.2

3,068
38,464

8.0
100.0

1,256
28,611

4.4
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 located 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
2018
189,460
172,356
17,10425[̶]2019198,369
180,988
17,380
41
[̶]

[̶]

[̶]

25
189,486

41
198,410

̶
̶
̶
̶
̶

̶
̶
̶
̶
̶

Sony Financial Holdings Inc. Financial Data Book 201971

■ Sony Life Performance Indicators (Non-consolidated)

4-15

Tangible fixed assets (general account)

Details of tangible fixed assets

Millions of yen, %2018

Balance atthe beginning Increase in
For the years ended March 31, of the period the period̶Land
83,007
Buildings
34,442
731
Leased assets
Construction in progress
Other tangible assets
Total

10
75
906
118,441090
822

Investment and rental
properties

111,265343

̶Amount of
Decrease in depreciation
the period in the period̶
20,747
2,976
2,109
[0]
̶
4
̶
75
1
179
23,8012,293[0]23,768

Balance atthe end of
the period
62,25930,087

Amount of% ofaccumulated accumulated
depreciation depreciation̶̶%
25,522
45.9

5

17

74.6

816
93,1691,640
27,18066.8
46.8

86,06924,391

49.2

̶

1,770

̶

̶

Millions of yen, %2019
Balance at
Amount of
the beginning Increase in Decrease in depreciation
For the years ended March 31, of the period the period the period in the period
̶
̶
̶
Land
62,259Buildings
30,087
494
69
1,967
[34]
Leased assets
5
21
1
4
̶
̶
̶
̶
Construction in progress
Other tangible assets
816
130
4
189
[2]
Total
93,169
646
76
2,161
[37]
Investment and rental
properties
86,069
75
917
1,599

Balance atthe end of
the period
62,25928,544% ofAmount ofaccumulated accumulated
depreciation depreciation
̶̶%27,459
49.0

20

0

2.4

752

1,791

70.4

91,57729,251

49.9

83,627

25,680

52.2

̶

̶

̶

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

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

4-16

2019
90,804
7,232
83,5712

201892,346
6,351
85,9952

As of March 31,

Overseas investment (general account)

Details by assets

Millions of yen, %

2019

2018
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 located outside Japan
Foreign bonds and others
Subtotal
Total
Overseas investment

AmountComposition

366,571
13,35229,939409,863
̶
̶
̶

87.7%
3.2
7.2
98.0
̶
̶
̶

Amount542,126
8,395
11,573562,095̶̶̶̶Composition
95.1%
1.5
2.0
98.6
̶
̶
̶

̶

̶

8,322
8,322

2.0
2.0

8,199
8,199

1.4
1.4

̶

418,185100.0

570,294100.0

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.

72

Sony Financial Holdings Inc. Financial Data Book 2019

■ Sony Life Performance Indicators (Non-consolidated)

Overseas investment by region

Millions of yen, %2018

Foreign securities
As of March 31,

North America
EuropeOceania
Asia
Latin America
Middle East
AfricaInternational organizations
Total

Amount370,252
3,421
11,436339
11,461
̶̶̶

396,910Foreign bonds

Composition Amount
93.3%
366,571
̶
0.9
̶
2.9
̶
0.1
̶
2.9

Foreign stocks, etc.

Composition
100.0%

̶
̶
̶

̶
̶
̶

̶
̶
̶
̶
̶
̶
̶

100.0

366,571

100.0

Amount3,681
3,421
11,436339
11,461

Composition
12.1%
11.3
37.7
1.1
37.8

30,339

100.0

̶
̶
̶

Loans to borrowers
located outside Japan
Amount
̶
̶
̶
̶
̶
̶
̶
̶
̶

̶
̶
̶

Composition
̶%
̶
̶
̶
̶
̶
̶
̶
̶

Millions of yen, %2019
Foreign securities
As of March 31,

North America
EuropeOceania
Asia
Latin America
Middle East
AfricaInternational organizations
Total

Loans to borrowers
Foreign stocks, etc. located outside Japan

Foreign bonds

Amount Composition Amount Composition Amount Composition Amount Composition
̶̶%544,778
96.5% 542,126
100.0%
2,652
11.8%
̶
̶
̶
̶
2,712
0.5
2,712
12.0
̶
̶
̶
̶
6,529
1.2
6,529
29.0
̶
̶
̶
̶
339
0.1
339
1.5
̶
̶
̶
̶
10,306
1.8
10,306
45.7
̶
̶
̶

̶
̶
̶

̶
̶
̶

̶
̶
̶

̶
̶
̶

̶
̶
̶

564,666

100.0

542,126100.0

22,539

100.0

̶
̶
̶
̶

Foreign currency-denominated assets by currency

Millions of yen, %

2019

2018
As of March 31,

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

4-17

̶
̶
̶
̶

Amount388,586
9,376
11,438120
341
409,863

Composition
94.8%
2.3
2.8
0.0
0.1
100.0

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

Composition
98.4%
0.3
1.2
0.0
0.1
100.0

Yield on overseas investments (general account)

For the years ended March 31,

Yield on overseas investments%
2018(1.19)

2019
6.30

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

Sony Financial Holdings Inc. Financial Data Book 201973

■ 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 on available-for-sale securities (before tax deductions) and net deferredgains or 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

2018
1,233,854
344,039
47,92989,9150Millions of yen
2019
1,313,033
361,442
50,10598,6132

156,01129,830153,782
50,980377
88,661
525,389

245
92,924
544,688(43,128)(5,171)(34,281)(5,471)

94,03024,337
8,587
32,452
20,137
32,953
2,369

101,371
24,574
8,526
34,062
22,14136,9352,524

2,624.3%

2,590.5%

̶

̶

̶

̶

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 or loss on tangible fixed assets④Unrealized gain or loss 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)

2018
11,222.6
9,567.6
1,617.5
37.4

Billions of yen
2019
12,556.8
10,380.1
2,114.3
62.3

8,362.8
9,074.9
47.9
89.9
525.7
525.3
0.3
48.4

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

2,859.7
1,617.5

3,432.3
2,114.3

1,242.2

1,318.0

̶
̶
̶

̶

̶
̶
̶

̶

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.

74

Sony Financial Holdings Inc. Financial Data Book 2019

■ 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 account2018
1,128,817

Millions of yen
2019
1,300,701

1,128,817

1,300,701

̶̶

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

%

2019

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(0.39)(11.38)
7.84
15.12
2.00
2.90
2.09

Short-termmonetary
marketbased
investment(0.02)

7-02 Investment progress (for the fiscal year ended March 31, 2019)
Equity-based investment
Benchmark: The Nikkei Stock Average■Investment progress in the period
The Japanese stock market was very volatile during the period. Favorable corporate performance in the U.S. weakened the yen
against the dollar, pushing the Nikkei Stock Average up sharply to ¥24,270 in early October, its highest level in approximately 27
years. However, U.S. stocks quickly tumbled in December as the U.S. FRB indicated its intention to continue to raise interest
rates in the face of a profound economic slowdown in China. Consequently, the yen appreciated against the dollar, causing the
Nikkei Stock Average to fall to as low as the ¥19,000 level at one point. Then, in light of the deterioration in global business
confidence, FRB decided to pause the interest rate hike. This mitigated excessive caution against an economic deceleration andtoward the end of the fiscal year, stock prices recovered to the level at the beginning of the fiscal year. Investment results of thefund were negative 0.39% year on year, while the benchmark return stood at negative 1.16%.
■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 11.38% year
on year, while the benchmark return stood at negative 5.04%.
■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 positive 7.84% year
on year, while the benchmark return was positive 8.58%.
■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 201975

■ 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
Stock markets in major countries around the world were very volatile during the period. In the U.S., amid continued robust
economic conditions, economic statistics results in October were received favorably. Share prices rose in anticipation of corporate
performance improvement, which drove share prices to set new records on a daily basis. However, caution against economic
deceleration heightened due to the additional hike in interest rates indicated by FRB, in addition to rekindled concerns over U.S.China trade friction, bringing down the stock market sharply toward the end of the year. Then, FRB announced that it would holdback on raising interest rates for some time in light of the deterioration of the business sentiment. The tendency toward excessive
risk aversion abated as a result, and toward the end of the year, U.S. share prices recovered to the level at the beginning of the
fiscal year. Investment results of the fund were positive 15.12% year on year, while the benchmark return was positive 8.58%.
■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
In the Japanese bond market, interest rates began to drop sharply in the second half of the fiscal year, despite some upturns. At
the Monetary Policy Meeting in July, the tolerable range for the fluctuation of long-term interest rates was widened to between
minus 0.2% and plus 0.2%. Interest rates began to rise in response to the announcement and long-term interest rates continued
to increase to around 0.16% at one point, the highest since the introduction of negative interest rates, on the back of rising stock
prices and an additional interest rate hike in the U.S. However, interest rates shifted to a decreasing trend with heightened concerns over global economic deceleration mainly in the U.S. and China. Long-term interest rates from January moved in thenegative range. Long-term interest rates as of March 31, 2019 were as low as negative 0.09%, a level not seen since the end of
September 2016. Investment results of the fund were positive 2.00% 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 in bond markets in major countries around the world declined toward the end of the fiscal year, despite someupturns, on the back of monetary policies in each country. In the U.S., interest rates rose supported by a solid economic environment and in light of the acceleration of the interest rate hike by FRB. However, as economic sentiment deteriorated due to theprospect of another interest rate hike amid further deceleration of the Chinese economy, interest rates began to fall. Later, as FRB
indicated its intention to pause the interest rate hike, interest rates continued to fluctuate at a low level. In European markets,
interest rates rose as the ECB Governing Council hinted at a move toward monetary policy normalization at its meeting in June.
However, interest rates declined as the Council decided to postpone the interest rate hike in response to a downward revision in
the economic growth forecast. The investment results of the fund were positive 2.90% year on year, while the benchmark returnstood at positive 2.90%.

■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 investment funds with a diversified portfolio mainly comprising Japanese bonds, Japanese stocks and the Exchange
Traded Fund (ETF Nikkei 225) registered investment results of positive 2.09% year on year, due to a decline in domestic stock
market, despite lower interest rates (and an associated rise in bond prices) in the Japanese bond 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.

76

Sony Financial Holdings Inc. Financial Data Book 2019

■ 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

2019

2018
As of March 31,

NumberAmountNumberAmountVariable life insurance (whole life type)843,324

8,384,508

836,700

7,980,475

Variable life insurance (limited term type)

122,514628,240

152,548922,336

Variable life insurance (term type)
Total

6,176

301,218

12,713

685,553

972,014

9,313,967

1,001,961

9,588,365

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

Individual variable annuities

Millions of yen

2019

2018
As of March 31,

NumberAmountNumberAmountIndividual variable annuities

162,474

945,144244,234

1,483,080

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, %

2019

2018
As of March 31,

Cash and deposits, call loans

Amount78,321

Composition
6.9%

Amount113,749

Composition
8.7%

1,048,062

92.8

1,184,185

91.0Japanese bonds

147,849

13.1

147,570

11.3

Japanese stocks

49,911

4.4

20,7701.6

Foreign securities

562,27749.8

697,945

53.7

77,3506.9

86,546

6.7

Securities

Bonds
Stocks, etc.

484,92743.0

611,398

47.0

Other securities

288,02225.5

317,900

24.4

Loans

̶

̶

̶

̶

Others

2,434

0.2

2,766

0.2

̶

̶

̶

̶

1,128,817

100.0

1,300,701

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 201977

■ 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,

2018

2019

Interest income and dividends

16,526

18,913

Gains on sale of securities

30,392

49,66232

50

Valuation gains on securities

258,562

298,688

Foreign exchange gains, net

̶̶

Gains on derivatives, net

̶̶

Other investment income

0

4,453

1,937

10,171

Gains on redemption of securities

Losses on sale of securities
Losses on redemption of securities
Losses on valuation of securities
Foreign exchange losses, net
Losses on derivatives, net

8376

221,586

268,458

719

1,983

̶

̶

Other investment expenses

253

3,134

Net investment gains (losses)

80,932

87,944

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-purpose securities

Millions of yen

2019

2018

As of March 31,

Trading-purpose securities

Balance sheet
amount
1,048,062

Net valuation
gains (losses)
recordedin income
36,976

Net valuation
gains (losses)
recorded
Balance sheet
in incomeamount1,184,185

30,230Note: 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

978

Number of Agencies

As of March 31,

2018

2019

Number of agencies

1,811

1,795

Sony Financial Holdings Inc. Financial Data Book 2019

■ Sony Life Performance Indicators (Non-consolidated)

10 Number of Employees and Recruits
10-01 Number of employees
2019

As of March 31,

2018

Office employees

2,420

2,627

[Male][1,120][1,266][Female][1,300][1,361]

5,826

5,834

[Male][5,673][5,674][Female]

[153]

[160]

Sales employees**Number of Lifeplanner sales employees (including those rehired on a fixed-term contract basis after retirement and contracted Lifeplanner
sales employees) is 5,164 as of March 31, 2019.

10-02 Number of recruits
2019

2018

For the years ended March 31,

366

490

[Male]

[93]

[174]

[Female]

[273]

[316]

Office employees

617

434

[Male]

[585]

[410]

[Female]

[32]

[24]

Sales employees

10-03 Average age and years of service
2019

2018
As of March 31,

Average age

Average yearsof service

Average age

Average yearsof service

40.7

9.1

40.8

8.9

[Male][42.3][12.1][42.4][11.7][Female][39.3][6.6][39.4]

[6.4]

44.7

10.0

44.9

10.3

[Male][44.9][10.2][45.0][10.5][Female][39.1][2.7][39.6][3.3]

Office employees

Sales employees

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

Thousands of yen

For the years ended March 31,

2018

2019

Office employees

383

382

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,

2018

2019

Sales employees

685

756

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 201979

■ Sony Assurance

Financial Data
Balance Sheets
Sony Assurance Inc.
As of March 31, 2018 and 2019

Millions of yen, %

2019

2018
AmountComposition

AmountComposition

Change23,77811.64%

20,043

9.13%(3,735)71.92

12,610

0.77

(717)

4.56

3,816

8.47

1,460

AssetsCash and deposits

00

Deposits

23,77820,043

Securities

145,349

Cash

157,959

82,422

76,390Japanese local government bonds

34,95450,504

Japanese corporate bonds

24,75029,268Japanese stocks

3,023

1,599

Foreign securities

197

Tangible fixed assets

2,407

Buildings
Construction in progress
Other tangible fixed assets
Intangible fixed assets

198
1.18

1,689
169

177
̶

63

2,229

1,456

6,196

3.03

10,012

Software

5,008

6,646

Software in progress

1,178

3,356

Other intangible fixed assets
Other assets

9917,1498.39

18,609Accrued premiums

1,238

1,234

Due from reinsurers

4290

Due from foreign reinsurers

0

15

10,432

11,115

Accrued income

149

161

Money on deposits

493

530

Suspense payments

4,831

5,260

Accounts receivable

Deferred tax assets
Total Assets

80

71.12

Japanese government bonds

Sony Financial Holdings Inc. Financial Data Book 2019

9,480

4.64

11,328

5.16

1,847

204,362100.00219,643100.0015,280■ Sony Assurance Financial Data

Millions of yen, %

2019

2018

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

Change156,61276.63%

168,494
40,674
127,819
13,018
235
5
1,938
73
5,099
5,666
1,857
1,236
238
238
184,84476.71%

11,881

5.93

1,464

0.85
0.56
0.11

189

84.16

13,671

20,0003,389
3,389
10,460
1,092
9,367
9,367
33,849

9.11
1.54

̶

4.76

2,587

15.41

2,587

949
949
34,798219,643

0.43
0.43
15.84
100.00(978)39,535
117,077
11,553

5.65

55
10
2,363
66
3,761
5,295
1,667

0.82

1,132

0.55

206

0.10

206
171,173

83.76

20,000

9.79

3,389

1.66

3,389
7,872

3.85

610
7,261
7,261
31,261

15.30

1,927

0.94

1,927

0.94

33,18916.24

204,362100.00

103
31

̶

(978)
1,609
15,280Sony Financial Holdings Inc. Financial Data Book 201981

■ Sony Assurance Financial Data

Statements of Income
Sony Assurance Inc.
For the years ended March 31, 2018 and 2019
2018

2019

110,092

115,102

5,009

Underwriting income

108,316

113,174

4,857

Net premiums written

108,254

113,101

Ordinary Revenues

Change

62

72

1,731

1,857

1,324

1,372

Gains on sale of securities

470

557

Transfer to interest and dividends on deposits of premiums

(62)

(72)

43

70

26

103,517108,204

4,686
4,015

Interest and dividends on deposits of premiums

Investment income
Interest income and dividends

Other ordinary income
Ordinary Expenses
Underwriting expenses

125

74,41978,435Net losses paid

52,48256,608Loss adjustment expenses

8,067

8,220

Net commissions and brokerage fees

1,771

1,724

Provision for reserve for outstanding losses and claims

1,194

1,139

Provision for underwriting reserves

10,903

10,741̶0̶

029,096

29,766

670

Other ordinary expenses

2

2

0

Other ordinary expenses

2

2

6,574

6,897

323

Extraordinary Gains

̶

̶

̶

Extraordinary Losses

35

39

4

Investment expenses
Losses on sale of securities

Operating, general and administrative expenses

Ordinary Profit

0

Losses on disposal of fixed assets

5

7Provision for reserve under the special laws

29

31

Provision for reserve for price fluctuations

29

31

6,539

6,858

319

Income Before Income Taxes

82

Millions of yen

Income Taxes - Current

3,497

3,325

(172)

Income Taxes - Deferred(1,780)(1,466)313

Total Income Taxes

1,717

1,858

140

Net Income

4,821

4,999

178

Sony Financial Holdings Inc. Financial Data Book 2019

■ Sony Assurance Financial Data

Statements of Changes in Net Assets
Sony Assurance Inc.
For the years ended March 31, 2018 and 2019

Millions of yen
2018
Shareholdersʼ equity
Capital surplus

Retained earnings (deficits)
Otherretainedearnings(deficits)

Commonstock

Capitalreserve

20,000

3,389

3,389

258

4,549

4,808

28,197

Dividends from surplus

̶

̶

̶

351

(2,109)(1,758)(1,758)Net income

̶

̶

̶

̶

4,821

4,821

4,821

Net changes of items other thanshareholdersʼ equity

̶

̶

̶

̶

̶

̶

̶

Total changes during the period

̶

̶

̶

351

2,712

3,063

3,063

Balance at the end of the period

20,000

3,389

3,389

610

7,261

7,872

31,261

Balance at the beginning of the periodLegalretainedearnings

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

Total
capitalsurplus

Changes during the period

Millions of yen
2018
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

1,211

1,211

29,409Dividends from surplus̶̶

(1,758)Net income

̶

̶

4,821

715

715

715

Total changes during the period

715

715

3,779

Balance at the end of the period

1,927

1,927

33,189Changes during the period

Net changes of items other than shareholdersʼ equity

Sony Financial Holdings Inc. Financial Data Book 201983

■ Sony Assurance Financial Data

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

2019
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

610

7,261

7,872

31,261Dividends 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

10,46033,849Balance at the beginning of the period
Changes during the period

Millions of yen

2019
Valuation andtranslation adjustments
Net unrealized
gains (losses)
Total
on available- valuation
for- saleandsecurities, translation
Total
net of taxes adjustments 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

34,798

Balance at the beginning of the period
Changes during the period

Net changes of items other than shareholdersʼ equity

84

Sony Financial Holdings Inc. Financial Data Book 2019

■ Sony Assurance Financial Data

Statements of Cash Flows
Sony Assurance Inc.
For the years ended March 31, 2018 and 2019

Millions of yen

2019

2018

ChangeCash flows from operating activities
Income before income taxes

6,539

6,858

319

Depreciation and amortization

3,927

2,457

(1,469)

Increase (decrease) in reserve for outstanding losses and claims

1,194

1,139

(54)

Increase (decrease) in underwriting reserves

10,903

10,741(161)

Increase (decrease) in reserve for employeesʼ retirement benefits

227

189

(37)

Increase (decrease) in reserve for directorsʼ retirement benefits

(36)

̶

36

Increase (decrease) in reserve for employeesʼ bonuses

50

103

53

Increase (decrease) in reserve for price fluctuations

29

31

2

Interest income and dividends(1,324)(1,372)(48)(Gains) losses on securities

(470)

(557)

(87)

(Gains) losses on tangible fixed assets

5

4

(1)

(Gains) losses on intangible fixed assets

̶

2

2

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

4,987(1,468)(6,456)

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

956

1,550

593

26,99019,681(7,309)SubtotalInterest and dividends received

1,654

1,750

95

Income taxes (paid) refund(2,909)(3,757)(847)

Net cash provided by (used in) operating activities

25,735

17,674(8,060)Purchases of securities(33,558)(43,286)(9,728)Proceeds from sale and redemption of securities

26,87529,505

2,630

Total of net cash provided by (used in) investment transactions(6,682)(13,780)(7,097)［19,052］［3,894］［(15,158)］

Cash flows from investing activities[Total of net cash provided by (used in) operating activities and investment transactions]

(148)

(326)

(178)

Others, net(2,318)(4,890)(2,571)

Net cash provided by (used in) investing activities(9,150)(18,998)(9,847)

Cash dividends paid

(1,758)(2,412)(654)

Net cash provided by (used in) financing activities(1,758)(2,412)

(654)

̶

̶

̶

Net increase (decrease) in cash and cash equivalents

14,827(3,735)(18,562)

Cash and cash equivalents at the beginning of the period

8,951

23,77814,827

Cash and cash equivalents at the end of the period

23,77820,043(3,735)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 201985

■ Sony Assurance Financial Data

Notes
Sony Assurance Inc.
As of March 31, for the year ended March 31,
1. For the fiscal year ended March 31, 2018, the total amount of deferred tax assets was ¥10,230 million, while the total
amount of deferred tax liabilities was ¥749 million. The breakdown of major factors giving rise to the deferred tax assets isunderwriting reserves of ¥5,767 million and reserve for outstanding losses and claims of ¥1,954 million.
For the fiscal year ended March 31, 2019, the total amount of deferred tax assets was ¥11,697million, while the total amountof deferred tax liabilities was ¥369 million. The breakdown of major factors giving rise to the deferred tax assets isunderwriting reserves of ¥7,045 million and reserve for outstanding losses and claims of ¥1,764 million.
2. Information regarding retirement benefits is as follows:(1) Retirement benefit obligations and their breakdown
Millions of yen

2019

2018
Retirement benefit obligations(1,960)(1,784)

Unrecognized net actuarial gains (losses)

116

102

Reserve for employeesʼ retirement benefits(1,667)(1,857)(2) The main basis for calculating retirement benefit obligations, etc.
Method for attributing projected retirement benefits: Benefit formula basis

2019

2018
Discount rate
Number of years for amortizing net actuarial gains or losses

0.3%

0.3%

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

2019

2018

86

232

Service cost

201

Interest cost

6

5

Recognized actual gains (losses)

16

17

Recognized past service cost67

̶Retirement benefit expenses

291

255

Contribution to defined contribution pension plan

185

193

Total

477

449

Sony Financial Holdings Inc. Financial Data Book 2019

■ Sony Assurance Financial Data

1

Loans by Borrower Categor yMillions of yen

2019

2018

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

2019

2018

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 96-1-3, i through v (allowed
limits for uncollectible accounts) or 96-1-4 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 written off), on which accrued interest receivable is notrecognized 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, %

2019

2018
As of March 31,

AmountComposition

AmountComposition

Japanese government bonds

82,422

56.7%

76,390

48.4%

Japanese local government bonds

34,95424.0

50,50432.0

Japanese corporate bonds

24,75017.0

29,268

18.5

Japanese stocks

3,023

2.1

1,599

1.0

Foreign securities

197

0.1

198

0.1

145,349100.0

157,959

100.0

Total

Sony Financial Holdings Inc. Financial Data Book 201987

■ Sony Assurance Financial Data

3-02

Yield on securities (yield on investments)%

For the years ended March 31,

2018

2019

Japanese bonds

0.93

0.89

Japanese stocks

0.96

1.00

Foreign securities

2.68

2.82

Other securities

̶

̶

Total

0.94

0.89

Yield on investments

1.27

1.25

Reference: Yield on investments (fair value basis)

1.95

0.36

3-03

Balance of securities by remaining period
Millions of yen
2018

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

9,512

13,35298

̶698

58,76082,422

Japanese local government bonds

7,372

15,252

10,711

200

710

707

34,954

Japanese corporate bonds

Total

5,332

11,734

5,876

201

100

1,505

24,750Japanese stocks

̶

̶

̶

̶

̶

3,023

3,023

Foreign securities

̶

100

96

̶

̶

̶

197

Other securities
Total

̶

̶

̶

̶

̶

̶

̶

22,21840,44016,782401

1,510

63,996145,349
Millions of yen

2019

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

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

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

3-04

Policy reserves and others

Reserve for outstanding losses and claims
As of March 31,

Millions of yen

2019

2018

Fire

5

5

Marine(1)(4)

Personal accident

694

670

Voluntary automobile

38,36339,540

471

462

̶

̶

39,53540,674Compulsory automobile liability
Others
Total

88

Total

Japanese government bonds

Sony Financial Holdings Inc. Financial Data Book 2019

■ Sony Assurance Financial Data

Underwriting reserves

Millions of yen

2019

2018

As of March 31,

Fire

802

435
0

0

Personal accident

52,32957,519Voluntary automobile

62,07467,023

Compulsory automobile liability

2,237

2,473

MarineOthersTotal̶̶

117,077

127,819

Breakdown of the balance of underwriting reserves

Millions of yen
2018

As of March 31,

Unearnedpremium
reserve

Catastrophe Contingency
reserve
reserve

Refundreserve

Reserve forpolicyholdersʼ
dividends

Total

384

50

0

̶

̶

̶

0

̶

̶

̶

0

Personal accident

48,889

3,330

109

̶

̶

52,329Voluntary automobile

44,47817,589̶6

̶

62,074Compulsory automobile liability

2,237

̶

̶

̶

̶

2,237

̶

̶

̶

̶

̶

̶

95,99020,970109

6

̶117,077

Fire
MarineOthersTotal

435

Millions of yen

2019
As of March 31,

Fire
MarineUnearnedpremium Catastrophe Contingency
reserve
reserve
reserve

Refundreserve

Reserve forpolicyholdersʼ
dividends

Total

657

143

1

̶

̶

802

̶

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

̶127,819

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,

2019

2018

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 201989

■ Sony Assurance Financial Data

3-06

Other reserves
Millions of yen
2017

2018
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

̶

̶

̶

̶

̶
̶

̶

̶

̶

̶

36

̶

36

̶

̶

1,082

1,132

1,082

̶

1,132

177

29

̶

̶

206

Total
Reserve for directorsʼ retirement benefits
Reserve for employeesʼ bonuses
Reserve for price fluctuations

Millions of yen

2019

2018

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

̶

̶

̶

̶

̶

Total

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

1,132

1,236

1,132

̶

1,236

206

31

̶

̶

238

Reserve for directorsʼ retirement benefits
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

2019

2018

Losses on Devaluation
sales
losses

Losses on
sales

Devaluation
lossesJapanese government bonds, etc.

14

̶

̶

9

0

̶

Japanese stocks

455

̶

̶

547

̶

̶

−

̶

̶

̶

̶

̶

470

̶

̶

557

0

̶

Foreign securities
Total

4-02

Gains (losses) on trading securities

Not applicable

90

Gains onsales

Gains onsales

For the years ended March 31,

Sony Financial Holdings Inc. Financial Data Book 2019

■ Sony Assurance Financial Data

4-03

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

2019

2018
Gains

For the years ended March 31,

Gains

Losses

LossesLand and buildings

̶

5

̶

4

Other tangible fixed assets

̶

0

̶

0

Intangible fixed assets

̶

̶

̶

2

Total

̶

5

̶

7

4-04

Operating expenses (including loss adjustment expenses)
Millions of yen

2019

2018

For the years ended March 31,

Personnel expenses

10,176

10,801

Non-personnel expenses

26,072

26,259

914

925

Taxes
Contribution to fire prevention and traffic accident prevention0

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

Net commissions and brokerage fees

1,771

1,724

Total

38,93439,711

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
2018
Depreciation
expenses

Accumulated
depreciation

609

29

431

177

609

29

431

177

̶

̶

̶

̶

Other tangible fixed assets

5,936

1,088

3,706

2,229

Software20,937

1,502

15,9295,008

Other intangible fixed assets

1,879

1,307

1,869

9

Total

29,362

3,927

21,936

7,425

For the year ended March 31,

Buildings
For corporate use
For rent

Acquisition cost

Balance at theend of the period

Millions of yen

2019
For the year ended March 31,

Acquisition cost

Depreciation
expenses

Accumulated Balance at the
depreciation end of the period

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

Buildings
For corporate use
For rent

Sony Financial Holdings Inc. Financial Data Book 201991

■ Sony Assurance Financial Data

5

Fair Value Information, etc.

5-01

Securities

Trading-purpose securities
Not applicable

Held-to-maturity securities

Millions of yen

2019

2018

Balance sheet
Difference
amountFair value

Difference

17,172

79,921

101,571

21,650

13

198

208

10

91,767

17,185

80,119101,779

21,660

4,496

4,173

(323)

̶

̶

̶

̶

̶

̶

̶

̶

̶

Balance sheet
amountFair value

Japanese bonds

74,38391,556

Foreign securities

197

211

74,581

Japanese bonds
Foreign securities

As of March 31,

Fair value is higher than balance sheet amount

Subtotal
Fair value is lower than balance sheet amount

Subtotal
Total

4,496

4,173

(323)

̶

̶

̶

79,07895,94016,86280,119101,779

21,660Stock of subsidiaries and affiliated companies
Not applicable

Available-for-sale securities

Millions of yen

2019

2018
As of March 31,

Balance sheet Acquisition
amountcost

Difference

Balance sheet Acquisition
amountcost
Difference

Balance sheet amount is higher than acquisition cost
Japanese bonds

40,24540,151

93

49,97049,89970

Japanese stocks

3,023

412

2,610

1,599

324

1,274

Subtotal

43,26840,5642,704

51,56950,223

1,345

Japanese bonds

23,002

23,029(27)

26,271

26,298(27)

Japanese stocks

̶

̶

̶

̶

̶

̶

23,002

23,029(27)

26,271

26,298(27)

66,27063,593

2,677

77,84076,521

1,318

Balance sheet amount is lower than acquisition cost

Subtotal
Total

Available-for-sale securities sold during the year

Millions of yen

2019

2018
For the years ended March 31,

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

4,622

14

̶

3,108

9

0

Japanese stocks

573

455

̶

637

547

̶

5,195

470

̶

3,746

557

0

Total

92

Amount ofsalesSony Financial Holdings Inc. Financial Data Book 2019

■ Sony Assurance

Performance Indicators
1

Principal Indicator s of Operating Per formance
Millions of yen

For the years ended March 31,

2015

2016

2017

2018

2019

Net premiums written

91,712

95,549100,274

108,254

113,101

Year-on-year change

3.5%

4.2%

4.9%

8.0%

4.5%

3,044

3,470

3,070

4,863

5,050

62.4%

14.0%

(11.5%)

58.4%

3.8%

93,022

96,905102,333

110,092

115,102

3.5%

4.2%

5.6%

7.6%

4.6%

4,209

4,680

4,996

6,574

6,897

40.1%

11.2%

6.8%

31.6%

4.9%

2,233

2,586

3,515

4,821

4,999

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

34.2%

15.8%

35.9%

37.2%

3.7%

Net loss ratio

57.6%

57.8%

57.5%

55.9%

57.3%

Net expense ratio

26.7%

27.1%

28.3%

28.5%

27.8%

Interest income and dividends

1,268

1,313

1,327

1,324

1,372

4.9%

3.6%

1.0%

(0.2%)

3.7%

Yield on investments (income basis)

1.10%

1.03%

0.95%

0.85%

0.80%

Yield on investments (realized basis)

1.11%

1.03%

1.44%

1.15%

1.12%

111,809127,256

137,553

145,349

157,959

̶

̶

̶

̶

̶

Underwriting reserves

86,50895,704

106,173

117,077

127,819

Common stock

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

400,000

400,000

400,000

400,000

Year-on-year change

Year-on-year change

Securities
Loans

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

24,741

28,30529,40933,18934,798

Total assets

157,919

172,323

186,537

204,362

219,643

̶

̶

̶

̶

̶

Capital adequacy ratio

15.7%

16.4%

15.8%

16.2%

15.8%

Dividend payout ratio

̶

50.0%

50.0%

50.0%

50.0%

629.6%

693.5%

730.8%

782.1%

813.0%

1,119

1,178

1,203

1,235

1,303

Assets accounted for as deposit premium accounts

Non-consolidated solvency margin ratio
Number of employees

Sony Financial Holdings Inc. Financial Data Book 201993

■ Sony Assurance Performance Indicators

2

Under writing Per formance

2-01

Direct premiums written
Millions of yen, %

2019

2018
For the years ended March 31,

Fire

AmountComposition YoY change

AmountComposition YoY change

206

0.2%

(15.9%)

616

0.5%

198.8%

̶

̶

̶

̶

̶

̶

MarinePersonal accident

8,679

8.1

(1.0)

8,823

7.9

1.7

Voluntary automobile

98,12391.7

9.0

102,758

91.6

4.7

Compulsory automobile liability

̶

̶

̶

̶

̶

̶

Others

̶

̶

̶

̶

̶

̶

107,008

100.0

8.1

112,198

100.0

5.3

86

Total
Direct premiums written per employee

86

4.8
(0.6)

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, %

2019

2018
For the years ended March 31,

AmountComposition YoY change

AmountComposition YoY change

Fire

16

0.0%

(34.4%)

265

0.2%

1,533.0%

Marine

0

0.0

̶

(0)

(0.0)

(100.0)

Personal accident

8,887

8.2

(1.7)

8,872

7.8

(0.2)

Voluntary automobile

97,88090.4

9.1

102,458

90.6

4.7

Compulsory automobile liability

1,469

1.4

0.6

1,505

1.3

2.4

̶

̶

̶

̶

̶

̶

108,254

100.0

8.0

113,101

100.0

4.5

OthersTotal

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, %

2019

2018
For the years ended March 31,

AmountComposition Net loss ratio

Amount60.0%

247.1%

15

0.0%

21.0%

Marine

2

0.0

308.8

10

0.0

̶

37.6

Personal accident

2,692

5.1

33.7

3,009

5.3

Voluntary automobile

48,464

92.3

57.4

52,223

92.3

58.6

Compulsory automobile liability

1,316

2.5

89.6

1,350

2.4

89.7

̶

̶

̶

̶

̶

̶

52,482

100.0

55.9

56,608

100.0

57.3

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

94

Composition Net loss ratioFireSony Financial Holdings Inc. Financial Data Book 2019

■ Sony Assurance Performance Indicators

2-04

Expenses and net expense ratio related to underwriting
Millions of yen

2019

2018

For the years ended March 31,

30,80331,411

Operating, general and administrative expenses related to underwriting

29,032

29,687

Net commissions and brokerage fees

1,771

1,724

28.5%

27.8%

Expenses related to underwriting

Net expense ratio
Note: Net expense ratio = Expenses related to underwriting / Net premiums written

2-05

Underwriting profit
Millions of yen

For the years ended March 31,

2018

2019

Underwriting income

108,316

113,174

Underwriting expenses

74,41978,435

Operating, general and administrative expenses

29,032

29,687

(1)

(1)

4,863

5,050

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

2019

2018

For the years ended March 31,(1,075)

Fire

(314)

Marine9(7)Personal accident(1,595)(2,717)

Voluntary automobile

6,764

8,852

Compulsory automobile liability̶̶

Others

̶

̶

4,863

5,050

Total

2-06

Net loss ratio, net expense ratio and combined ratio
%

2019

2018

Net lossratio

Net expense Combined
ratio
ratio

For the years ended March 31,

Net lossratio

Net expense Combined
ratio
ratio

Fire

247.1

1,785.3

2,032.3

21.0

346.7

367.7

Marine

308.8

267.4

576.2

̶

̶

̶

Personal accident

33.7

33.8

67.5

37.6

34.8

72.4

Voluntary automobile

57.4

28.1

85.5

58.6

26.7

85.4

Compulsory automobile liability

89.6

̶

89.6

89.7

̶

89.7

Others

̶

̶

̶

̶

̶

̶

Total

55.9

28.5

84.4

57.3

27.8

85.1

Note: Combined ratio = Net loss ratio + Net expense ratio

Sony Financial Holdings Inc. Financial Data Book 201995

■ 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, %

2019

2018
As of March 31,

Cash and deposits

23,778Composition

AmountComposition

11.6%

20,043

9.1%

Call loans

̶

̶

̶

̶

Bond trading with repurchase agreement

̶

̶

̶

̶

Bonds paid for securities borrowing transactions

̶

̶

̶

̶

Monetary claims purchased

̶

̶

̶

̶

Securities under proprietary accounts

̶

̶

̶

̶

Money held in trust
Securities
Loans

̶

̶

̶

̶

145,34971.1

157,959

71.9

̶

̶

̶

̶

177

0.1

169

0.1

Total

169,305

82.8

178,172

81.1

Total assets

204,362100.0

219,643100.0

Land and buildings

96

AmountSony Financial Holdings Inc. Financial Data Book 2019

■ Sony Assurance Performance Indicators

3-03

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

Millions of yen, %

2019

2018
For the years ended March 31,

AmountYield

Amount
0

Yield
0.00%

Cash and deposits

0

0.00%

Call loans

̶

̶

̶

̶

Bond trading with repurchase agreement

̶

̶

̶

̶

Bonds paid for securities borrowing transactions

̶

̶

̶

̶

Monetary claims purchased

̶

̶

̶

̶

Securities under proprietary accounts

̶

̶

̶

̶

Money held in trust

̶

̶

̶

̶

1,323

0.94

1,372

0.89

Loans

̶

̶

̶

̶

Land and buildings

̶

̶

̶

̶

1,324

0.85

1,372
0
1,372

0.80

Securities

Subtotal
Others

0

Total

1,324

Yield on investments (realized basis)

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

1.77

1.12
0.33

Notes: 1. Total revenues are equal to “interest income and dividends” in the statements of income of Sony Assurance.
2. In principle, the average balance of investments is calculated based on average balances of either acquisition cost or amortized costat the end of each month, then divided by 12.
3. 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 is the numerator, andfair value of investment assets is the denominator.
• Numerator = (Investment income + Interest and dividends on deposits of premiums – Investment expenses) + (Net unrealized
gains at end of period* – Net unrealized gains at end of previous period*)• Denominator = Average balance of either acquisition cost or amortized cost + Net unrealized gains on available-for-salesecurities at end of previous period**Amounts before tax deductions

3-04

Overseas investment

Millions of yen, %

2019

2018
As of March 31,

AmountComposition

AmountComposition

Foreign currency denominatedForeign bonds

̶

̶%

̶

̶%

Foreign stocks

̶

̶

̶

̶

Others̶̶̶̶

Subtotal

̶

̶

̶

̶

Yen denominated
Loans to borrowers outside Japan
Foreign bonds

̶

̶

̶

̶

197

100.0

198

100.0

Others̶̶̶̶

Subtotal

197

100.0

197

100.0

198
198

100.0
100.0

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

2.68%

Yield on investments (realized basis)

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

2.68

2.82%
2.82
2.82

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 3 of “3-03 Interest income and dividends, yield on investments (income basis).”Sony Financial Holdings Inc. Financial Data Book 201997

■ 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 on available-for-sale securities and net deferred gains (losses) on hedging
instruments (before tax deductions)
Net unrealized gains 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

2018
54,244
28,849206
109
20,970
̶

2,409
̶
̶
̶
̶
̶

2019
60,01031,349238
122
24,636
̶

1,186
̶
̶
̶
̶
̶

1,698

2,476

13,871
12,395
114
1,712
305
1,036

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

782.1%

813.0%

̶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).

• 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 on available-for-sale securities and net deferred gains (losses) on hedging instruments (before tax
deductions)
Net unrealized gains on available-for-sale securities (securities other than trading-purpose securities, held-to-maturity
securities, stock of subsidiaries and affiliated companies) and associated net deferred gains (losses) on hedging
instruments.
7. Net unrealized gains on real estate
Net unrealized gains 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.
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.

98

Sony Financial Holdings Inc. Financial Data Book 2019

■ Sony Assurance Performance Indicators

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 201999

■ Sony Bank

Financial Data (Consolidated)
Consolidated Balance Sheets
Sony Bank Inc. and consolidated subsidiaries
As of March 31, 2018 and 2019

Millions of yen
2018

2019

Cash and due from banks

287,752

344,377

Monetary claims purchased

5,378

4,916

Money held in trust

21,00021,937

Assets672,244694,447

1,596,376

1,744,103

Foreign exchanges

9,346

8,471

Other assets

52,372

51,685

Tangible fixed assets

1,709

1,633

658

628

Securities
Loans

Buildings

0

̶

1,051

1,004

5,652

6,903

5,637

6,888

14

14

Deferred tax assets

138

1,305

Reserve for possible loan losses

(806)

(903)

2,651,162

2,878,879

2,219,324

2,358,182

96,000130,611

̶

20,290180,000

210,000

Leased assets
Other tangible fixed assets
Intangible fixed assets
Software
Other intangible fixed assets

Total Assets

Liabilities
Deposits
Call money and bills soldPayables under repurchase agreements
Borrowed money

228

244

66,07167,752

769

777

1,243

1,323

81

125

2,563,718

2,789,308

Common stock

31,00031,000Capital surplus

21,00021,000Retained earnings

28,94833,067

Total shareholdersʼ equity

80,94885,067Net unrealized gains (losses) on available-for-sale securities, net of taxes

6,037

3,974

Net deferred gains (losses) on hedging instruments, net of taxes(1,086)(1,260)Foreign exchanges
Other liabilities
Reserve for employeesʼ bonuses
Net defined benefit liability
Provision for reimbursement of deposits
Total Liabilities

Net Assets

Remeasurements of defined benefit plans, net of taxes

(103)

(106)

Total accumulated other comprehensive income

4,847

2,606

Non-controlling interests

1,648

1,896

Total Net Assets
Total Liabilities and Net Assets

100

Sony Financial Holdings Inc. Financial Data Book 201987,44489,5702,651,162

2,878,879

■ Sony Bank Financial Data (Consolidated)

Consolidated Statements of Income
Sony Bank Inc. and consolidated subsidiaries
For the years ended March 31, 2018 and 2019

Millions of yen

2019

2018

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
Reversal of reserve for possible loan losses
Income from money held in trust, net
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 Losses
Losses on disposal of fixed assets
Impairment 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

46,01831,926
17,473
14,382
1
62
7
9,650
3,926
515

39,933
28,344
17,064
11,204
2
63
9
6,961
3,823
804
96
1
706
32,752
7,731
5,322
(73)

̶
̶

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

̶

113
2,368
6,685
109
18,084
141
̶

141
7,180
92
92
̶

7,088
2,225
(46)
2,179
4,909
186
4,722

Consolidated Statements of Comprehensive Income
Sony Bank Inc. and consolidated subsidiaries
For the years ended March 31, 2018 and 2019

Millions of yen
2018ProfitOther 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

4,909
1,519
1,260
251
7
6,429
6,242
187

2019
6,608
(2,243)(2,063)
(174)
(6)
4,364
4,116
248

Sony Financial Holdings Inc. Financial Data Book 2019101

■ Sony Bank Financial Data (Consolidated)

Consolidated Statements of Changes in Net Assets
Sony Bank Inc. and consolidated subsidiaries
For the years ended March 31, 2018 and 2019

Millions of yen
2018
Shareholdersʼ equity
Total
Retained shareholdersʼearnings
equityCommonstock

Capitalsurplus31,00021,00025,81577,815

Dividends from surplus̶̶

(1,590)(1,590)

Profit attributable to owners of the parent

̶

̶

4,722

4,722

Net changes of items other than shareholdersʼ equity

̶

̶

̶

̶

Total changes during the period

̶

̶

3,132

3,132

Balance at the end of the period

31,00021,00028,94880,948

Balance at the beginning of the period
Changes during the period

Millions of yen
2018
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

4,776(1,338)

(109)

3,328

1,460

82,604

̶

̶

̶

̶

̶

(1,590)Changes during the period
Dividends from surplus

̶

̶

̶

̶

̶

4,722

1,260

251

6

1,519

187

1,706

Total changes during the period

1,260

251

6

1,519

187

4,839

Balance at the end of the period

6,037(1,086)

(103)

4,847

1,648

87,444

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

102

Sony Financial Holdings Inc. Financial Data Book 2019

■ Sony Bank Financial Data (Consolidated)

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

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

Sony Financial Holdings Inc. Financial Data Book 2019103

■ Sony Bank Financial Data (Consolidated)

Consolidated Statements of Cash Flows
Sony Bank Inc. and consolidated subsidiaries
For the years ended March 31, 2018 and 2019

Millions of yen

2019

2018
Cash flows from operating activities
Income before income taxes

7,088

9,547

Depreciation and amortization

1,812

1,952

̶

27

Increase (decrease) in reserve for possible loan losses

(164)

96

Increase (decrease) in reserve for employeesʼ bonuses

(13)

8

Increase (decrease) in net defined benefit liability

137

70

Increase (decrease) in reserve for directorsʼ retirement benefits

(19)

̶

Increase (decrease) in provision for reimbursement of deposits

1943Interest income - accrual basis(28,344)(31,926)

Interest expenses - accrual basis

7,731

8,643

(Gains) losses on securities

2,126(2,418)

(1)

(0)

8,208

(3,803)

Impairment losses(Gains) losses on money held in trust
Exchange (gains) losses

74

53

Net (increase) decrease in loans(56,745)(147,727)

Net increase (decrease) in deposits

109,572

138,822

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

80,00030,000Net (increase) decrease in call loans and bills sold

(4,805)461

Net increase (decrease) in call money and bills bought

26,00054,902

Net (increase) decrease in foreign exchange (assets)(2,077)874

Net increase (decrease) in foreign exchange (liabilities)

119

16

Interest income-cash basis

30,94432,683

Interest expenses-cash basis(7,907)(8,183)(Gains) losses on disposal of fixed assets

Others, net(8,661)

2,241

Subtotal

165,095

86,387(1,189)(2,636)

163,906

83,751

Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities(228,090)(214,140)

Proceeds from sale of securities

51,241

66,935

Proceeds from redemption of securities

Purchases of securities

125,856

126,539

Investments in money held in trust

̶

(943)

Proceeds from money held in trust

2,000

̶

Purchases of tangible fixed assets(1,066)(244)

Purchases of intangible fixed assets(2,086)(3,033)̶(0)(52,144)(24,887)

Others, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net decrease in subordinated borrowings(3,000)̶

Cash dividends paid

(1,590)(2,238)(0)(0)

Net cash provided by (used in) financing activities(4,590)(2,238)Net increase (decrease) in cash and cash equivalents

107,171

56,625

Cash and cash equivalents at the beginning of the period

180,581

287,752

Cash and cash equivalents at the end of the period

287,752

344,377

Payments for leased obligations

104

Sony Financial Holdings Inc. Financial Data Book 2019

■ Sony Bank

Financial Data (Non-consolidated)
Balance Sheets
Sony Bank Inc.
As of March 31, 2018 and 2019

Millions of yen
2018

2019

287,332

343,063

287,332

343,063

Monetary claims purchased

5,378

4,916

Money held in trust

21,00021,937

Securities

674,285

696,468

Japanese government bonds

96,87264,126

Japanese local government bonds

36,001

20,040Japanese corporate bonds

65,36649,994

Japanese stocks

2,050

2,050

Other securities

473,993560,256

1,596,376

1,744,103

1,577,480

1,725,791

18,895

18,312

9,346

8,471

9,346

8,471

37,10335,443

Domestic exchange settlement account, debit

438

1,349

Prepaid expenses

149

200

Accrued income

3,687

4,189

Derivatives

7,320

4,084

Cash collateral paid for financial instruments

18,55918,148

Accounts receivable

4,599

5,005

Others

2,349

2,464

1,204

1,092

Buildings

620

575

Other tangible fixed assets

584

516

3,808

5,200

3,803

5,195

5

4

̶

1,133

(806)

(903)

2,635,028

2,860,925

AssetsCash and due from banks
Due from banks

Loans
Loans on deeds
Overdrafts
Foreign exchanges
Due from foreign banks
Other assets

Tangible fixed assets

Intangible fixed assets
Software
Other intangible fixed assets
Deferred tax assets
Reserve for possible loan losses
Total Assets

Sony Financial Holdings Inc. Financial Data Book 2019105

■ Sony Bank Financial Data (Non-consolidated)

Millions of yen
2018

2019

2,219,325

2,358,985

Liabilities
Deposits

672,877

782,242

Time deposits

1,134,731

1,147,048

Other deposits

411,716

429,694

96,000130,611

Ordinary deposits

Call money̶20,290180,000

210,000

Borrowed money

180,000

210,000

Foreign exchanges

228

244

Foreign bills sold

147

73

Foreign bills payable

81

170

52,03351,717

Payables under repurchase agreements
Borrowed money

Other liabilities̶

959

Income taxes payable

1,588

2,041

Accrued expenses

5,255

6,410

Initial margins of futures markets

20,20518,989Derivatives

16,34915,379590

180

Domestic exchange settlement account, credit

Cash collateral received for financial instruments

226

227

7,817

7,529

Reserve for employeesʼ bonuses

687

677

Reserve for employeesʼ retirement benefits

933

994

Provision for reimbursement of deposits

81

125

Deferred tax liabilities9̶

2,549,299

2,773,646

Common stock

31,00031,000Capital surplus

Asset retirement obligations
OthersTotal Liabilities

Net Assets
21,00021,000Capital reserves

21,00021,000Retained earnings

28,77832,565

Legal retained earnings

709

1,157

Other retained earnings

28,06831,40728,06831,40780,77884,565

Unappropriated retained earnings
Total shareholdersʼ equity
Net unrealized gains (losses) on available-for-sale securities, net of taxes

6,037

3,974

Net deferred gains (losses) on hedging instruments, net of taxes(1,086)(1,260)Total valuation and translation adjustments

4,950

2,713

Total Net Assets

85,72987,2792,635,028

2,860,925

Total Liabilities and Net Assets

106Sony Financial Holdings Inc. Financial Data Book 2019

■ Sony Bank Financial Data (Non-consolidated)

Statements of Income
Sony Bank Inc.
For the years ended March 31, 2018 and 2019

Millions of yen

2019

2018

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 redemption of bonds
Gains on derivatives
Other ordinary income
Reversal of reserve for possible loan losses
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
OthersGeneral and administrative expenses
Other ordinary expenses
Provision for reserve for possible loan losses
Write-off of loans
OthersOrdinary Profit
Extraordinary Losses
Losses on disposal of fixed assets
Income Before Income Taxes
Income Taxes - Current
Income Taxes - Deferred
Total Income Taxes
Net Income

36,27028,344
17,064
11,204
2
63
9
3,298
267
3,030
3,823
3,456
334
0
32
804
96
1
706
29,712
7,730
5,322
(73)
̶

113
2,360
8
6,238
265
5,972
109
68
40
15,515
118
̶

0
118
6,557
74
74
6,482
2,033
(25)
2,007
4,474

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

Sony Financial Holdings Inc. Financial Data Book 2019107

■ Sony Bank Financial Data (Non-consolidated)

Statements of Changes in Net Assets
Sony Bank Inc.
For the years ended March 31, 2018 and 2019

Millions of yen
2018
Shareholdersʼ equity
Capital surplus

Retained earnings
Otherretainedearnings

Commonstock

Capitalreserves

Total
capitalsurplus31,00021,00021,000391

25,50125,89377,893

Dividends from surplus

̶

̶

̶

318

(1,908)(1,590)(1,590)Net income

̶

̶

̶

̶

4,474

4,474

4,474

Net changes of items other thanshareholdersʼ equity

̶

̶

̶

̶

̶

̶

̶

Total changes during the period

̶

̶

̶

318

2,566

2,884

2,884

Balance at the end of the period

31,00021,00021,000709

28,06828,77880,778

Balance at the beginning of the period

Legal
Total
UnappropriatedTotal
retainedretained shareholdersʼretainedearnings
earnings
equityearnings

Changes during the period

Millions of yen
2018
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

4,776(1,338)3,438

81,332

Dividends from surplus

̶

̶

̶

(1,590)Net income

̶

̶

̶

4,474

1,260

251

1,512

1,512

Total changes during the period

1,260

251

1,512

4,397

Balance at the end of the period

6,037(1,086)

4,950

85,729Changes during the period

Net changes of items other than shareholdersʼ equity

108

Sony Financial Holdings Inc. Financial Data Book 2019

■ Sony Bank Financial Data (Non-consolidated)

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

2019
Shareholdersʼ equity
Capital surplus

Retained earnings
Otherretainedearnings

Common Capitalstock
reserves

Total
capitalsurplus

Legal Unappropriated Total
Total
retained shareholdersʼretainedretainedearnings
earnings
earnings
equity31,00021,00021,000709

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
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 Total net
net of taxes net of taxes adjustments
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

87,279Balance 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 2019109

■ 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

2019

2018
Deferred tax assets
Losses on valuation of securities

664

664

Reserve for possible loan losses

198

223

Provision for retirement benefits

285

304

Provision for bonuses

210

207

Net deferred losses on hedging instruments

479

556

OthersSubtotal of deferred tax assets
Valuation allowance on total deductible temporary differences

589

701

2,427

2,656

̶

(664)

Subtotal of valuation allowance

(664)

(664)

Total deferred tax assets

1,763

1,992

1,707

796

Deferred tax liabilities
Net unrealized gains on available-for-sale securities
OthersTotal deferred tax liabilities
Net deferred tax assets

110Sony Financial Holdings Inc. Financial Data Book 2019

65

62

1,772

859

9

1,133

■ Sony Bank Financial Data (Non-consolidated)

1

Loans by Borrower Categor yMillions of yen

2019

2018

As of March 31,

Category
Bankrupt and quasi-bankrupt loans

472

596

Doubtful loans

685

807

Sub-standard loans

842

800

1,604,392

1,751,032

1,606,393

1,753,237

Normal loans
Total

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

2019

2018

As of March 31,

91

180

1,061

1,220

̶

̶

842

800

1,995

2,201

Profit and Loss

3-01

Gross operating profit
Millions of yen

2019

2018
For the years ended March 31,

Net interest income

Domestic
divisionInternational
division

15,506

5,141Interest income

18,8309,540Interest expenses

3,323

4,399

Domestic International
division
division

Total
20,648［27］

28,344［27］

7,695

16,415

6,891

18,932

13,027

2,516

6,136

Total
23,307［33］

31,926［33］

8,619(3,048)108(2,940)(2,367)132(2,234)

Fees and commissions received

3,093

204

3,298

5,063

275

5,338

Fees and commissions paid

Net fees and commissions

6,142

95

6,238

7,430

142

7,573

Net trading income

̶

̶

̶

̶

̶

̶

Trading income

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

Net other operating income

54

3,658

3,713

(220)

3,661

3,441

Other operating income

112

3,710

3,823

257

3,669

3,926

Other operating expenses

57

51

109

477

7

485

Gross operating profit

12,512

8,909

21,421

13,828

10,68524,514Gross operating profit ratio

0.60%

1.84%

0.84%

0.62%

1.91%

0.89%

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 (¥34 million - fiscal2017, ¥24 million - fiscal2018).
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 2019111

■ 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, %

2019

2018
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［27,628］

2,082,692
1,553,044
198,824

Interest［27］

18,83016,987
1,742

Yield
0.90%
1.09
0.87

Averagebalance
Interest［38,331］［33］
2,220,115
18,932
1,636,579
17,398
175,156
1,429

Yield
0.85%
1.06
0.81

̶

̶

̶

̶

̶

̶

272,724
7,363

63
9

0.02
0.13

348,222
4,269

62
6

0.01
0.16

［̶］

2,061,645
1,796,170
138,594

［̶］

3,323
1,989
(74)

0.16

［̶］

［̶］

0.11

0.11
(0.05)

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

2,516
1,856
(63)

0.09
(0.04)

̶

̶

̶

̶

̶

̶

147,931113

0.07

186,21988

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” (¥1,497 million̶fiscal2017, ¥1,488 million
̶fiscal2018) is excluded. In the financing accounts, the average balance of funds for investing money held in trust (¥21,679 million̶
fiscal2017, ¥21,087 million̶ fiscal2018) and the interest expenses on money held in trust (¥34 million̶fiscal2017, ¥24 million̶
fiscal2018) are excluded, respectively.

International division

Millions of yen, %

2019

2018
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
1.97%

Averagebalance［̶］Interest
［̶］

Yield
2.33%

0.97
2.03
1.79

558,833
8,446
540,06458

13,02774
12,952
1

0.88
2.39
2.27

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

482,786
7,935
465,149
140

9,540
77
9,461
2

̶
̶
［27,628］［27］［38,331］［33］

398,441
370,572
51

4,399
3,332
0

̶

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

6,136
4,891
151
312

0.89
1.59

1.18
2.26
2.52

̶

̶

̶

̶

̶

̶

̶

̶

1.10

1.30

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

112

Sony Financial Holdings Inc. Financial Data Book 2019

■ Sony Bank Financial Data (Non-consolidated)

Total

Millions of yen, %

2019

2018
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
2,537,850
1,560,979
663,973140
272,724
7,363
2,432,459
2,166,743
138,645

Interest
28,344
17,064
11,204
2
63
9
7,695
5,322
(73)

Yield
1.11%
1.09
1.68
1.79
0.02
0.13
0.31
0.24
(0.05)

̶̶̶147,931

113

0.07

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

Interest
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

Note: In the investment accounts, the average balance of non-interest-bearing “due from banks” (¥1,497 million̶fiscal2017, ¥1,488 million
̶fiscal2018) is excluded. In the financing accounts, the average balance of funds for investing money held in trust (¥21,679 million
̶fiscal2017, ¥21,087 million̶fiscal2018) and the interest expenses on money held in trust (¥34 million̶fiscal2017, ¥24 million̶
fiscal2018) are excluded, respectively.

Interest spread

%

2019

2018
For the years ended March 31,

Yield on investment
Yield on financing
Interest spread

3-03

Domestic
division
0.90
0.16
0.74

International
division
1.97
1.10
0.87

Total
1.11
0.31
0.80

Domestic International
division
division
0.85
2.33
0.11
1.30
0.73
1.02

Total
1.16
0.32
0.83

Interest income and interest expenses

Domestic division

Millions of yen

2019

2018

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
3,327
1,255
116
̶

86
5
773
182
(91)

Increase
Increase(decrease) Increase(decrease) Net increase
due to(decrease) Net increase
due to yield (decrease)balance due to yield (decrease)(2,447)879
1,242(1,141)
101
(252)
1,003
913
(502)
411
(261)
(145)
(207)
(105)
(312)
̶

̶

̶

̶

̶

(87)
3
(1,587)
(515)
34

(0)
9
(814)
(333)
(56)

17
(9)
226
101
(5)

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

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

29

(54)

(24)

̶

̶

̶

224

(322)

(97)

̶

̶

̶

Sony Financial Holdings Inc. Financial Data Book 2019113

■ Sony Bank Financial Data (Non-consolidated)

International division

Millions of yen

2019

2018

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
1,074
(4)
1,031
̶
̶
̶

Increase
Increase(decrease) Increase(decrease) Net increase
due to(decrease) Net increase
due to yield (decrease)balance due to yield (decrease)
(121)
952
1,502
1,984
3,487
(0)
(5)
4
(7)
(2)
(75)
955
1,523
1,966
3,490
2
2
(1)
0
(1)

663
224
̶
̶
̶

̶
̶

̶
̶

̶
̶

̶
̶

̶
̶

(748)
325
0

(84)
550
0

̶
̶

̶
̶

785
372
105

951
1,185
45
312

1,737
1,558
150
312

̶
̶

̶

Total

̶

Millions of yen

2019

2018

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
4,326
1,249
1,066
̶

86
5
1,459
403
(91)
̶

224

Increase
Increase(decrease) Increase(decrease) Net increase
due to(decrease) Net increase
due to yield (decrease)balance due to yield (decrease)(2,515)
1,810
2,264
1,317
3,582
(251)
998
918
(509)
408
(257)
809
864
2,312
3,177
2
2
(1)
0
(1)
(87)
(0)
17
(18)
(0)
3
9
(4)
1
(2)
(2,380)
(920)
636
286
923
(186)
217
325
1,098
1,424
35
(55)
(9)
170
161
̶
̶
̶
312
312
(322)
(97)
29
(54)
(24)

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

114

Sony Financial Holdings Inc. Financial Data Book 2019

2018
3,829
144
535
1,254
1,371
1,780
4
301
30
11
738
903
20
1,563
1,098
598
1,327
15,515

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

■ 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-purpose securities
Not applicable

Held-to-maturity securities

Millions of yen
2018

As of March 31,

Balance sheet amount

Fair value

Difference

200

201

1

200

201

1

Fair value exceeding balance sheet amountJapanese corporate bonds
Total

Notes: 1. Fair value is based upon the value measured at the fiscal year end.
2. There were no fair values that did not exceed their non-consolidated balance sheet amount.

2019
Not applicable

Available-for-sale securities

Millions of yen

2019

2018
As of March 31,

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

Balance sheet amount exceeding acquisition
cost
159,116

151,369

7,747

128,667

122,510

6,156

Japanese government bonds

62,24856,567

5,681

62,12656,922

5,203

Japanese local government bonds

34,50033,624876

20,04019,689351

Bonds

Japanese corporate bonds
OthersForeign bonds
OthersSubtotal

62,367

61,1781,188

46,50045,899601

287,657

282,442

5,215

233,113228,207

4,905

279,376

276,933

2,442

226,698

224,196

2,502

8,281

5,508

2,772

6,414

4,011

2,403

446,774

433,812

12,962361,780

350,718

11,061(2)

Balance sheet amount not exceedingacquisition cost
38,924

39,202

(278)

5,494

5,496

Japanese government bonds

34,62334,901

(277)

2,000

2,001

(0)

Japanese local government bonds

1,501

1,501

(0)

̶

̶

̶

Japanese corporate bonds

2,798

2,800

(1)

3,493

3,495

(1)

191,714

192,956(1,242)332,059

333,742(1,682)

189,559

190,801(1,241)

328,870

330,552(1,682)

2,154

2,155

(0)

3,189

3,189

̶

Bonds

OthersForeign bonds
OthersSubtotal
Total

230,638

232,159(1,520)337,553

339,238(1,684)

677,412665,971

11,441

699,334

689,957

9,376

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
2018

2019

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 2019115

■ 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
2018

As of March 31,

Other money held in trust

Balance sheet
amountAcquisition cost

21,00021,000

Balance sheet amount Balance sheet amountexceeding acquisition
not exceedingcost
acquisition cost

Difference̶̶̶Millions of yen

2019
Balance sheet
amountAcquisition cost

As of March 31,

21,937

Other money held in trust

Difference

21,943

Balance sheet amount Balance sheet amountexceeding acquisition
not exceedingcost
acquisition cost
̶

(6)

(6)

Note: “Difference” consists of “Balance sheet amount exceeding acquisition cost” and “Balance sheet amount not exceeding acquisition cost.”

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

Millions of yen
2018

As of March 31,

Type

Notional
amountNotional amountover 1 year

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

13,461

Floating-rate receivable / Fixed-rate payable

13,461Category
Over-the-countertransactions

Fair value

Valuation gains(losses)

13,461(66)(66)

13,461

66

66

̶

̶

Total

Notes: 1. The above transactions are evaluated at fair value, and valuation gains (losses) are recorded in the statements of income.
2. Fair value is calculated using the price indicated by the financial institution.

Derivatives for which hedge accounting is applied

Millions of yen
2018

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

103,000

103,000

130

Fair value hedge
accounting

Interest rate swaps
Floating-rate receivable / Available-for-sale securities
Fixed-rate payable(bonds)268,367

241,415(12,300)

Total(12,169)

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 present value.

116

Sony Financial Holdings Inc. Financial Data Book 2019

■ Sony Bank Financial Data (Non-consolidated)

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 evaluated at fair value, and valuation gains (losses) are recorded in the statements of income.
2. Fair value is calculated using the discounted present value on the option pricing model.

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)(11,358)

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 present value.

Currency derivatives
Derivatives for which hedge accounting is not applied

Millions of yen
2018

As of March 31,

Type

Notional
amountOver-theForward foreign exchanges
counterSoldtransactions
Bought66,635

̶

152

152

153,069

̶

499

499

Sold

62,635

̶

2,480

2,480

Bought21,987

̶

1,020

1,020

Sold

156

̶

(1)

0

Bought

206

̶

1

0

̶

̶

̶

̶

14,216

̶Category

Notional amountover 1 year

Fair value

Valuation gains(losses)

Foreign exchange margin transactions

Currency options

Currency forwards
Sold
Bought
Total

(325)

(325)

3,828

3,828

Notes: 1. The above transactions are evaluated at fair value, and valuation gains (losses) are recorded in the statements of income.
2. Fair value is calculated using the discounted present value or the option pricing model.

Sony Financial Holdings Inc. Financial Data Book 2019117

■ Sony Bank Financial Data (Non-consolidated)

Derivatives for which hedge accounting is applied

Millions of yen
2018

As of March 31,

MethodFair value hedge
accounting

Hedged item

Notional
amountNotional amountover 1 year

Available-for-sale securities(bonds)

19,20014,000Type
Currency swaps

Fair value
(687)

Total

(687)

Notes: 1. Fair value hedge accounting is applied.
2. Fair value is calculated using the discounted present value.

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)

12,786

̶

(270)

(270)

1,795

1,795

Foreign exchange margin transactions

Currency options

Currency forwards
Sold
BoughtTotal

Notes: 1. The above transactions are evaluated at fair value, and valuation gains (losses) are recorded in the statements of income.
2. Fair value is calculated using the discounted present value or the option pricing model.

Derivatives for which hedge accounting is applied

Millions of yen

2019

As of March 31,

MethodDeferred hedge
accounting
Fair value hedge
accounting

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

Type

Total

Fair value
(931)
(795)
(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 present value.

118

Sony Financial Holdings Inc. Financial Data Book 2019

■ 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
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

2015
35,7147,298
4,634
31,000620,000
77,0642,062,525
1,878,256
1,187,187
730,01310.65%
̶455

2016
34,892
5,857
3,912
31,000620,000
77,4282,126,564
1,923,506
1,344,184
620,993
9.89%
50.07%
456

2017
35,105
4,634
3,176
31,000620,000
81,332
2,424,236
2,112,985
1,539,630
631,2969.75%
50.06％
480

2018
36,2706,557
4,474
31,000620,000
85,7292,635,028
2,219,325
1,596,376
674,285
10.45％
50.01％
487

2019
41,707
8,698
6,025
31,000620,000
87,2792,860,925
2,358,985
1,744,103
696,468
9.58％
50.00％
498

Notes: 1. Number of employees refers to full-time employees.
2. In the fiscal year ended March 31, 2017, the method for measuring credit risk in the calculation of the non-consolidated capital
adequacy ratio was changed from the previous “standard approach” to the “foundation internal ratings-based approach.”

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

For the years ended March 31,

Floating deposits
Time and saving deposits
Other deposits
Total

Millions of yen
Domestic
division
664,6021,130,959
608
1,796,170

2018

2019

International
division
177,041
193,48249
370,572

Domestic International
division
division
Total
744,333
175,610
919,944
1,141,975
236,312 1,378,287
1,134
75
1,209
1,887,444
411,997 2,299,441

Total
841,643
1,324,441
658
2,166,743

Year-end balance

As of March 31,

Floating deposits
Time and saving deposits
Other deposits
Total

Millions of yen
Domestic
division
672,877
1,134,731
720
1,808,329

2018

2019

International
division
190,691
220,247
56
410,995

Domestic International
division
division
Total
782,242
173,129955,371
1,147,048
255,304 1,402,352
1,178
82
1,260
1,930,468
428,516 2,358,985

Total
863,569
1,354,978
777
2,219,325

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 ¥60,078 million and ¥56,671million as of March 31, 2018 and 2019, respectively.

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

2018

2019

Fixed rate Floating rate
time deposits time deposits
Total̶
329,325
329,325
̶
434,419434,419
̶
401,735
401,735
̶
39,56339,563
̶
19,365
19,365
̶
49,45449,454
̶
1,273,863
1,273,863

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

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

Sony Financial Holdings Inc. Financial Data Book 2019119

■ Sony Bank Performance Indicators (Non-consolidated)

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

Millions of yen

2019

2018
For the years ended March 31,

Loans on bills
Loans on deeds
Overdrafts
Bills discounted
Total

Domestic International
division
division

Domestic
divisionInternational
division

̶

̶

̶

̶

̶

̶

1,534,294
18,7507,933
21,542,227
18,752

1,618,016
18,5628,441
4

1,626,458
18,567

Total

̶

̶

̶

̶

̶

̶

1,533,044

7,935

1,560,979

1,636,579

8,446

1,645,025

Year-end balance

Millions of yen

2019

2018
As of March 31,

Loans on bills
Loans on deeds
Overdrafts
Bills discounted
Total

Total

Domestic International
division
division

Domestic
divisionInternational
division

̶

̶

̶

̶

̶

̶

1,569,455
18,8938,024
11,577,480
18,895

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

Total

Total

̶

̶

̶

̶

̶

̶

1,588,349

8,026

1,596,376

1,735,826

8,276

1,744,103

3-02 Balance of loans by remaining period
Millions of yen

2019

2018
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

Fixed interest
Floating
rates
interest rates
1,316
11,861
2,068
17,214
5,548
21,251
10,4397,958
28,072
16,209629,749
825,790
̶
18,895677,195
919,180

Total
13,17819,28226,80018,39744,282
1,455,540
18,895
1,596,376

Fixed interest Floating
rates
interest rates
Total
126
7,045
7,171
2,098
17,464
19,563
6,010
13,13619,146
10,736
9,139
19,87527,883
16,102
43,985654,128
961,920 1,616,048
̶
18,312
18,312700,983 1,043,120 1,744,103

3-03 Balance of loans by collateralMillions of yen
As of March 31,

Pledged securities̶̶

Pledged receivables̶̶

Pledged merchandise̶̶1,111,211

1,167,547

Pledged real estate̶̶

Subtotal

1,111,211

1,167,547

Guaranteed

213,515

307,220

Credit271,649

269,335

Total

1,596,376

1,744,103

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

120

2019

2018

Sony Financial Holdings Inc. Financial Data Book 2019

■ Sony Bank Performance Indicators (Non-consolidated)

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, %

2019

2018
Balance
1,544,485
51,89020,010
502
568
4,189
2,489
3,000
19,487125
1,517
1,596,376

As 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

Composition Balance
96.74%
1,708,696
3.25
35,406
1.25
14,912
̶
0.03
0.03
441
0.26
3,057
0.15
1,653
0.18
1,131
1.22
12,608
0.00
87
0.09
1,513
100.00%1,744,103

Composition
97.97%
2.03
0.85
̶

0.02
0.17
0.09
0.06
0.72
0.00
0.08
100.00%3-05 Loan-deposit ratio: year end and annual average
%

2019

2018
As of March 31, for the years ended March 31,

At the year end
Annual average
Note: Loan-deposit ratio =Domestic
division
87.83
86.46

International
division
1.95
2.14

Domestic
division
89.91
86.70

Total
71.93
72.04

International
division
1.93
2.05

Total
73.93
71.54

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

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

2019

2018

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
416
390

Increase(Decrease)
(22)
(141)

Balance atthe end of
the period
480
422

Increase(Decrease)
64
31

̶

̶

̶

̶

806

(164)

903

96

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

Total

2018

2019

0

0

Sony Financial Holdings Inc. Financial Data Book 2019121

■ Sony Bank Performance Indicators (Non-consolidated)

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
2018

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

12,867

15,0782,085

̶

20,363

46,478

̶

96,872

Japanese local
government bonds

1,501

14,60319,896̶̶̶̶

36,001

̶

65,366

Unspecified
term

Total

3,724

26,61834,823

̶

200

̶

Japanese stocks

̶

̶

̶

̶

̶

̶

2,050

2,050

Other securities

88,227145,038

107,084

16,794

17,81993,9705,058

473,993

88,227145,038

107,084

16,794

17,81993,970̶

468,935

Japanese corporate bonds

Foreign bonds

̶

̶

̶

̶

̶

̶

5,058

5,058

106,320

201,338

163,889

16,79438,182

140,649

7,109

674,285

Others
Total

Millions of yen

2019More 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

As of March 31,

Within1 yearJapanese government
bonds

15,032

12,102

Japanese local
government bonds

̶̶

17,941

19,050̶

64,126503

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
OthersTotal

4-03

Average and year-end balance of securities by category

Average balance

Millions of yen

2019

2018
For the years ended March 31,

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

122

Total

Sony Financial Holdings Inc. Financial Data Book 2019

Domestic
division
94,18635,082
65,1282,050
2,375International
division
̶
̶
̶
̶

̶

465,149
465,149

2,375
198,824

465,149

̶Total
94,18635,082
65,1282,050
467,525
465,149
2,375
663,973

Domestic International
division
division̶
75,929̶
32,848
̶
61,953
̶
2,050
2,373
540,064̶
540,064
̶
2,373
175,156
540,064

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

■ Sony Bank Performance Indicators (Non-consolidated)

Year-end balance

Millions of yen

2019

2018
As of March 31,

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

Domestic
division
96,87236,001
65,3662,050
5,058International
division
̶
̶
̶
̶

̶

468,935
468,935

5,058
205,350

468,935

̶Domestic International
division
division̶64,126
̶
20,040̶
49,994
̶
2,050
4,687
555,568̶
555,568̶
4,687
140,899555,568

Total
96,87236,001
65,3662,050
473,993468,935
5,058
674,285

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

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

2019

2018
As of March 31, for the years ended March 31,

At the year end
Annual average
Note: Securities-deposit ratio =Domestic
division
11.35
11.06

International
division
114.09125.52

Total
30.38
30.64

Domestic International
division
division
7.29
129.649.28
131.08

Total
29.52
31.10

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

Sony Financial Holdings Inc. Financial Data Book 2019123

■ Sony Life MCEVMCEV Results for Sony Life as of March 31, 2019
1

MCE V resultsSony Lifeʼs MCEV as of March 31, 2019 increased ¥87.1 billion, primarily because of new business acquired.
Billions of yen

2

As of March 31,

2018

2019

MCEV

Change1,633.1

1,720.2

87.1

Adjusted net worth

1,786.1

2,195.7

409.6

Value of existing business(152.9)(475.5)(322.5)Adjusted net wor th
The adjusted net worth as of March 31, 2019 increased ¥409.6 billion, primarily because of the increase in unrealized
gain on held-to-maturity securities caused by a decrease in interest rates. The breakdown of adjusted net worth isshown in the table below.
Billions of yen
As of March 31,

2018

2019

Adjusted net worth

1,786.1

2,195.7

409.6

Total net assets

492.7

513.9

21.1

Reserve for price fluctuations

47.9

50.1

2.1

Contingency reserve

89.9

98.6

8.6

Reserve for possible loan losses

0.0

0.0

0.0

Reinsurance debit for coinsurance-type reinsurance

2.0

2.0

0.0

Change1,582.6

2,030.8

448.1

Unrealized gains or losses on policy-reserve-matching bonds

34.8

83.5

48.6

Unrealized gains or losses on land and buildings

69.6

100.9

31.2

Unfunded pension liabilities

(2.4)

(1.7)

0.6

Unrealized gains or losses on held-to-maturity securities

Intangible fixed assets(23.2)(26.3)(3.1)

Tax effect equivalent of above nine items(504.4)(654.6)(150.2)

(3.7)

(1.4)

2.2

Valuation gain or loss on subsidiaries and affiliated companies

Billions of yen
As of March 31,

2018

2019

Adjusted net worth

1,786.1

2,195.7

Free surplus

926.0

1,001.4

75.3

Required capital

860.0

1,194.3

334.3

Change409.6

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, 2019 increased primarily because of an increase in the amountof liabilities 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, 2019 decreased ¥322.5 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,

2019

Change(152.9)(475.5)(322.5)Present value of certainty-equivalent profit

316.7

34.2

(282.4)

Time value of options and guarantees(136.0)(140.8)(4.7)

Frictional costs(22.6)(23.4)(0.8)

Cost of non-hedgeable risks(310.9)(345.4)(34.5)

Value of existing business

124

2018

Sony Financial Holdings Inc. Financial Data Book 2019

■ Sony Life MCEV

4

New business value
The new business value in fiscal year ended March 31, 2019 increased ¥20.9 billion, primarily because of the increasein the volume of new business sales. The breakdown of new business value is as follows:
Billions of yen
For the years ended March 31,

Change

70.4

91.3

20.9

106.2

120.2

14.0

Time value of options and guarantees

(6.8)

(7.7)

(0.8)

Frictional costs

(0.1)

(0.1)

(0.0)

Cost of non-hedgeable risks(26.7)(21.6)

5.1

Other profits or losses

(2.0)

0.6

2.6

Value of new business
Present value of certainty-equivalent profit

5

2019

2018

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 value of new
business in the fiscal year ended March 31, 2019 reflects a revision in the methodologies for the quantification for
insurance risks. Due to this revision and others*, the new business margin in the fiscal year ended March 31, 2019slightly increased.
Billions of yen
For the years ended March 31,

2019

2018

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

Change70.4

91.3

1,213.8

1,426.2

212.4

5.8%

6.4%

0.6 points

20.9* Sony Life revised the methodologies for the quantification of insurance risks to better reflect its risk profile on March 31, 2018. Along withthis revision, Sony Life also revised the cost of capital rate from 2.5% to 3.0%.

6

Reconciliation analysis from MCE V at the end of theprior year
The table below shows the reconciliation analysis of MCEV as of March 31, 2019, from MCEV as of March 31, 2018.
Billions of yen
Free surplus

Required capital

Value of existing
business

Opening MCEV (MCEV as of March 31, 2018)

926.0

860.0

(152.9)1,633.1

Opening adjustments(26.2)

̶̶

(26.2)

Adjusted opening MCEV

MCEV

899.8

860.0

(152.9)1,606.9

New business value

(0.6)

1.3

90.7

91.3

Expected existing business contribution (risk-free rate)

(1.1)

(1.1)

17.4

15.0

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

1.2

1.2

7.1

9.5

Transfers from value of existing business and required capital to free surplus(29.5)(41.0)

70.6

̶(73.5)

̶73.5

̶

Experience variances

133.7(112.4)(18.7)

2.5

Assumption changes

45.5(45.5)

69.6

69.6

Other operating variance

8.5

(8.5)

8.5

8.5

Operating MCEV earnings

157.7(206.3)

245.3

196.7

Economic variances(56.1)

540.7(567.9)(83.3)

̶

̶

̶

̶

101.5

334.3

(322.5)113.3

Of which, on new business

Other non-operating varianceTotal MCEV earnings
Closing adjustments
Closing MCEV (MCEV as of March 31, 2019)

̶

̶

̶

̶

1,001.4

1,194.3(475.5)

1,720.2

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■ 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

1,720.2

̶̶Interest rates

50bp decrease

1,640.4(79.7)(5%)

50bp increase

1,764.4

44.1

3%

Swap rates

1,740.0

19.7

1%

Stock / Real estate market value

10% decrease

1,696.3(23.8)(1%)

Stock / Real estate implied volatility

25% increase

1,691.6(28.5)(2%)

Interest swaption implied volatility

25% increase

1,700.5(19.7)(1%)

Maintenance expenses

10% decrease

1,744.5

24.2

1%

Lapse and surrender rates

× 0.9

1,689.8(30.4)(2%)

Mortality rates

Death protection
products × 0.95

1,787.3

67.0

4%

Third-sector and annuity
products × 0.95

1,705.8(14.3)(1%)

Morbidity rates

× 0.95

1,790.6

70.3

4%Required capital

Regulatory minimum

1,740.8

20.5

1%Foreign exchange rates

10% appreciation of JPY

1,693.0(27.2)(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(79.7)

937.6(1,017.4)

50bp increase

44.1(810.3)854.4

Stock / Real estate market value

10% decrease(23.8)(8.1)(15.7)

Foreign exchange rates

10% appreciation of JPY(27.2)(0.3)(26.9)

Primar y assumptions
Sony Life has used the JGB yields and U.S. Treasury yields as of the end of March 2019 as reference rates for thecertainty-equivalent projections.
Sony Life has not added a liquidity premium on the risk-free rate as there are no products that 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).

126

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■ 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,

2018

U.S. dollar

2019

2018

2019

Term (in years)
1(0.13)(0.18)

2.09

2.39

5

(0.11)(0.20)

2.56

2.23

10

0.04

(0.08)

2.74

2.41

20

0.53

0.34

2.85

2.63

30

0.74

0.51

2.97

2.82

40

0.89

0.58

3.02

2.87

50

1.19

0.94

3.05

2.93

60

1.40

1.19

3.08

2.96

70

1.53

1.35

3.09

2.98

80

1.61

1.44

3.10

3.00

(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 the end of March 2019. Best-estimate assumptions are developed
to reflect 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, 2019” (https://www.sonyfh.co.jp/index_en.html) 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 an economic value as ofMarch 31, 2019 increased ¥12.6 billion year on year to ¥742.3 billion, due mainly to an increase in the lapse decline risk
offsets the decrease in interest rate risk resulting drop in interest rates. The breakdown of the risk amount is as follows:
Billions of yen
As of March 31,

2019

2018

ChangeInsurance risk

497.5

547.3

49.8

Market-related risk

380.6

332.5

(48.0)

275.3

202.1

(73.1)

Operational risk

31.0

33.4

2.3

Counterparty risk

2.5

3.0

0.5

Variance effect(181.9)(174.0)

7.8

729.7

742.3

12.6

Of which interest rate risk

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.

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■ 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 tocover future non-hedgeable risks. As risks regarding theasymmetric nature of cash flows not reflected in the present
value of certainty-equivalent profit are fully reflected in thetime 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 thecost of non-hedgeable 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
ICS (Insurance Capital Standard)• The capital standard for internationally active insurancegroups (IAIGs) developed by the International Association of
Insurance Supervisors (IAIS).

Implied volatility• The expected rate of future variability embedded in current
option prices, representing represents the expected value ofthe market against price fluctuation.

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.

128

Sony Financial Holdings Inc. Financial Data Book 2019

• Present value of certainty-equivalent profit is the present
value of profit based on the future cash flows generated fromthe covered business.

R
Required capital• The MCEV Principles define required capital as the capitalthat is needed in excess of statutory policy reserves(excluding contingency reserves). It is determined as thelarger of the solvency capital to meet the statutory required
minimum level or the capital necessary to meet internal
objectives or to achieve 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 thecurrency of cash flows.

U
Ultimate forward rate
• The level of forward rate to which future forward rates are
assumed to ultimately converge. It is generally determined ina macroeconomic approach.

Sony Financial Group